Arkay Energy Combined Cycle Power Plant

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Arkay Energy Power Project Limited (AEPPL) developed a 60 MW combined cycle power plant on build own and operate (BOO) basis in Valathur village, in the Ramnad district of Tamil Nadu. AEPPL was to sell power to Tamil Nadu State Electricity Board under a ten year power purchase agreement (PPA), that was signed in May 2002. AEPPL achieved financial closure in January 2004. The total project cost was estimated at Rs 25,400 lakhs (US$ 56.05 million). Power Finance Corporation funded the project through term loans. GEA India was awarded the US$ 30 million engineering, procurement and construction contract for the project. AEPPL signed a ten year gas supply agreement with Gas Authority of India Limited to secure the necessary natural gas fuel to power the plant. The project was expected to begin commercial operation in May 2005.