Coastal Energen offers settlement of Rs 5,84 cr

CHENNAI: Existing Promoters, Mutiara & Precious Energy Holdings of Coastal Energen have offered a total settlement of Rs 5,847 cr including 15% equity, out of which Rs 2,327 cr has already been settled to the SBI Consortium.

Rs 5,847 cr amounts to an 82% (Rs 4.87 cr/Mw) recovery for banks vs Rs 3,440 cr (Rs 2.87 cr/Mw) offered by Dickey-Adani Power. This settlement offer by existing Promoters is amongst the highest in the country. Meenakshi Energy concluded at Rs 1.44 cr /Mw, Jindal India at Rs 2.03 cr / Mw, Essar – Rs 1.33 cr / Mw.

Existing promoters have a long history of nation building and charitable activities in line with which Coastal Energen was set up in 2006. Coastal Energen (2x600 Mw) is one of the largest IPPs in Tamil Nadu funded by SBI and consortium of banks. The promoters are also offering 15% equity as part of the settlement plan. With the above settlement offer, the Promoters are confident that the SBI-led Consortium will view the offer favourably considering an extremely attractive recovery of 82% and amongst the highest in the country.

Despite financial constraints existing promoters ensured Coastal Energen was well maintained enabling good recovery for banks. Coastal Energen was one among 34 stressed IPP identified by GOI which is nearing resolution. The plant is located at Melamarudur Village, in Thoothukudi. The Unit 1 of 600 Mw is tied up with TANGEDCO under a 15 years power purchase agreement.