Coastal Energen to source equipment from Harbin Power

Chennai: Coastal Energen is developing 1,200-MW coal based power project at Tuticorin, the boiler, turbine and generator for which is being sourced from Harbin Power of China.

The chief reason for choosing Harbin over its competitors is the very quick delivery promised – 24 months, according to Mr Ahmed A.R. Buhari, Founder President and CEO of Coal and Oil Group of companies, to which Coastal Energen belongs.

The agreement with Harbin for the supply of equipment was signed here today. Harbin will supply equipment worth $450 million to Coastal Energen.

Questions have been raised by experts in India including Mr Jairam Ramesh, the Minister of State for Power and Commerce over the suitability of Chinese power equipment to India. When asked about this, Mr Buhari defended the move to buy Harbin equipment saying that global consultants have backed the Harbin package.

Coastal Energen’s project is configured as two units of 600 MW each and Harbin has a standard design for 600 MW plants for Indian coals, Coastal’s officials said at a press conference here today.

Harbin has assured of a station heat rate of 2,350 kcal and a turbine heat rate of 1,965 kcal per unit of electricity. (Heat rate is the heat energy required to produce one kilowatt of electricity – the lesser the better.) The heat rate promised by Harbin is higher than BHEL’s (1,930 kcal) for a comparable machine, showing BHEL to be better.
But Coastal Energen’s Managing Director, Mr S.M. Zafrulla, said that the ‘Harbin package’overall is more cost effective, especially in terms of the quick delivery. He also said that in actual working condition, the turbine heat rate would be comparable to BHEL’s.

Mr Buhari said that the financial closure for the Rs 4,500-crore project would be over in the next two months. Three fourths of the project cost is to be met by debt. The Dubai-based A W Rostamani Group is investing $60 million in the project for a 30 per cent equity stake. The rest of the funds would come from within the Coal and Oil group.

The group has been active in coal sourcing and supply for power projects in India and as such, is a “forward integration”. It is the first power project for the group (which is why it chose not to go in for supercritical technology).

The plant is expected to be commissioned in 36 months. The project will be one of the larger merchant power projects in the country. Generation from about 700 MW of capacity will be sold to Tata Power, Mr Buhari said.