Coastal Energen Pvt Ltd is setting up a 2x600 MW coal based thermal power project in Mutiara in Tuticorin district in Tamil Nadu. The project site is situated 13 kms away from Tuticorin town and 21 kms from port. The company had awarded the EPC contract for boilers and turbines to Harbin a China based company and the project is likely to go operational in 2013. The project cost was estimated at Rs. 54000 million and 16 Indian banks have funded the project. Coal supply had been assured from Indonesia and the project also will use desalinated water.
The company had signed up a PPA with Tata Power for evacuation, however the power starved TN government is unlikely to allow the developer to sell power using the section 11 of the Electricity Act 2003. The subject is currently waiting court verdict.