Neyveli Lignite Fired Power Plant

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The CMS Energy and ST Power Systems power plant is being undertaken through a joint venture company called ST-CMS Electric Company, which is also the project operator. The $283 million engineering, procurement, and construction (EPC) contract was awarded to Asea Brown Boveri (ABB). A fuel supply agreement was signed with NLC and a 30-year power-purchase-agreement was signed with TNSEB. In 1994, the IFC granted the project US$ 30 million in direct loans, US$ 150 million in syndicated loans and US$ 18 million in equity. Industrial Credit and Investment Corporation of India and State Bank of India arranged the offshore portion of the financing totaling $100 million (182 million DM) while ANZ Investment Bank, Bank of America, Citibank, KBC Bank., NV Paribas BNP and Fuji arranged the offshore financing totaling $120 million denominated in US$, DM, and rupees. Tariffs are set at $0.10/Kwh for the first few years of operation. Once the debt has been repaid (expected in 2009), the levelized tariffs will drop to $0.05/Kwh. In fourth quarter 2001, CMS Energy announced plants to exit the independent power business in India and other countries. In 2007, Abu Dhabi National Energy Company (TAQA) bought the shares of CMS and ABB in the project. None None