East Coast Energy Private Limited (ECEPL)

distressed

Failure

East Coast Energy Private Limited (ECEPL) was created to implement and operate a super-critical technology coal based Thermal Power Plant near Kakarapalli Village, Santhabommali Mandal, Srikakulam district, Andhra Pradesh, India. The plant was to be developed in two phases each of 1320 MW (2x660MW) for a total generation capacity of 2640 MW. East Coast Energy Private Limited (“East Coast”) was incorporated on January 19, 2007 and its shareholder structure by March 2001 was as follows: Asian Genco Pte Ltd (AGPL) with 33.87%, Cobalt Power Private Limited with 22.23%, Athena Energy Ventures Pvt Ltd (AEVPL) with 23.24%, AIP Power Pvt Ltd (AIP) with 2.39%, Abir Infrastructure Pvt Ltd (Abir) with 4.4% and PTC India Financial Services Ltd with 13.87%. Entire project land possession and all statutory approvals have been obtained. Andhra Pradesh Industrial Infrastructure Corporation (APIIC) transferred the title of Land to ECEPL. EPC contract: Contract Agreement for Boiler – Turbine - Generator (BTG) Supply has been signed with Dongfang Electric Company (DEC), Republic of China. Coal Linkage for 70% of the coal consumption for stage-1 (2x660 MW) has been allocated from Mahanadi Coal Fields Limited, Orissa. Letter of Assurance (LOA) issued by MCL. ECEPL has signed Fuel Supply Agreement for supply of imported coal with Global Fuels Pte. Ltd. for 30% of the fuel required. GoI, MoC has stipulated that coastal based plants need to source 30% fuel from outside the country. East Coast has entered into a PPA with PTC partly on long-term basis to sell 85.00% of the power generated and partly on a short-term/merchant basis. Approximately 70.00% of the coal requirement for the projects is proposed to be met through a domestic coal linkage while the remaining 30.00% is expected to be imported. The project cost estimated to be IND 65.7 billion (US$ 1437 million). The project reached financial closure in August, 2010. The project was funded through equity of 25 per cent and debt of 75 per cent. The debt was raised from a consortium of 14 banks and financial institutions led by Power Finance Corporation (PFC). On March 1, 2011, the GoI, through the MoEF, ordered the suspension of on-going construction work related to the project on the basis of several representations received by the MoEF that East Coast had not complied with the order, dated August 30, 2010, of the National Environment Appellate Authority, and that the project was being developed on wetlands which is not permitted.

Energy

World Bank Group

Project

Airport, Commercial, Power Generation (CCGT), Geothermal, Wind, Government, Manufacturing (Industrial)