OPG Power Ventures is to add a second unit to its existing coal-fired power plant near Chennai, India, after receiving the final environmental clearance needed for the project.
The independent power producer, which develops and operates captive power plants for industrial clients in India, says that it is planning to complete construction of the new 77 MW unit by the end of 2012.
The second unit at the site will be a twin of the first unit and will share certain facilities - such as the chimney - with unit 1. It will also be developed by the same special project vehicle company and use the same vendors and equipment as the first unit, says OPG.
The cost of the project will be £55 million and will be financed with 75 per cent debt and 25 per cent equity. Debt has already been secured through a consortium of banks.
OPG says that it has already placed equipment contracts for the project, with BHEL supplying the turbine generator and Ansaldo the boiler. The developer of the project is OPG Power Generation PVT Ltd.
Construction at the site is expected to begin in September 2010.
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