CONTRACT
The government of Tamil Nadu has selected New Delhi’s Shriram Consolidated to build a 106MWe liquid-fuel based power plant at Sirumugia near Coimbatore. However, the company has been forced to alter its submission because the state government will not allocate naphtha for the plant. The station will now burn condensate. The condensate is expected to be supplied by Shell Australia. Project costs for a naphtha-fuelled plant were around $60 million ,but this will have to be re-estimated in the light of the change of fuel.
The project is currently stalled because failure of the power ministry to grant an escrow account; the account is needed to make the project financially attractive for investors.