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Thursday, September 13, 2007

Two 1000MW Powerplants at Tuticorin

The Tamil Nadu Government has approved the setting up of four merchant power plants with a total generating capacity of 6,000 MW. These plants are to come up along the coast – one each at Cuddalore and Nagapattinam, and two near Tuticorin, according to official sources.

According to the sources, the projects that have been approved are – UDI Infrastructure (2,000 MW at Cuddalore), Tridem (2,000 MW, Nagapattinam), Coastal Gen (1,000 MW, Tuticorin) and Free City (1,000 MW, Manappadu near Tuticorin).

Merchant power plants, unlike other power plants that sign power purchase agreements with utilities, compete for customers and absorb the full market risk. Typically, according to the Power Ministry, the risk of a merchant power plant is carried on the balance sheet of the promoter.

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