Re plunge hikes cost of two power projects - The New Indian Express

Re plunge hikes cost of two power projects

Published: 01st October 2013 08:12 AM

Last Updated: 01st October 2013 08:42 AM

The estimated cost of completing the power projects in Thoothukudi and the oil refinery project at Cuddalore has escalated due to the depreciation of the rupee value,  according to Housing and Urban Development Corporation (HUDCO). Senior executive director (Chennai) of HUDCO K Subramanian told Express that there had been a cost escalation for Coastal Energen Private Limited, making a special purpose vehicle promoted by Ahmed Buhari (promoter of Coal and Oil Group) for the development of 1,200 MW  thermal power plant in Thoothukudi, which is dependent on imports.

“We have provided Rs 250 crore in the project. The variation in foreign exchange has resulted in additional funds,” he said.

About 98 per cent of the project has been completed, said Subramanian.

He said, the Nagarjuna Oil Refinery Project in Cuddalore had also been affected due to rupee depreciation. Interestingly, HUDCO had lent Rs 300 crore for the project. The total cost of the Cuddalore project- one of Tamil Nadu’s largest private sector projects- is around ` 25,000 crore.

He also said HUDCO was also playing a major role in the Rajiv Awas Yojana to be implemented in 10 cities including Chennai, Madurai, Coimbatore, Erode, Tiruppur, Thiruchirapalli, Tirunelveli, Thoothkudi, Salem and Vellore.

He said the state was likely to get Rs 5,000 crore for RAY projects. Deputy general manager (projects) R Anbu said HUDCO’s role was to apprise the Central Sanctioning and Monitoring Committee about the proposal. He said the preliminary survey had been done and detailed project report was being awaited.

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