BS reported that Mumbai based Patel Engineering Ltd is planning to invest around INR 5000 crore to set up a thermal power plant in Nagapatnam district of Tamil Nadu.

Mr Rupen Patel MD of Patel Engineering said that the company would set up a 1,320 MW capacity thermal power plant at Nagapatnam. The project, to come up on 800 acres of land will be developed in phases. He added that “This will depend on the equipment supplier for which bidding is still on.”

Mr Patel said that the company hopes to achieve financial closure for the project by the first quarter of 2010-11 and commence work by the second quarter. It has set a three-year deadline to complete the project, which would be funded through debt and equity.

He further said that they had entered into a memorandum of understanding with the Power Trading Corporation to sell the power produced from the proposed plant. The plant would generate around INR 3,000 crore revenues a year, when fully operational.

The project would require 3.6 million to 4 million tonne coal for which it has applied to the coal ministry and is also planning to enter into an agreement with Chennai-based Marg Ltd.

(Sourced from Business Standards)