C Shivakumar
Chennai:
The rupee depreciation has resulted in cost escalation of a power project in Thoothkudi and an oil refinery project in Cuddalore, according to Housing and Urban Development Corporation (HUDCO).
Senior executive director (Chennai) of HUDCO K Subramanian told Express that there has been cost escalation in Coastal Energen Private Limited, a special purpose vehicle promoted by Ahmed Buhari (promoter of Coal and Oil Group) for the development of 1200 MW imported coal based thermal power plant in Thoothkudi.
“We had provided Rs 250 crore in the project. The variation in foreign exchange resulted in additional funds,” he said
About 98 per cent of the project is over and Coastal Energen has promised to service our debt, said Subramanian.
He said the Nagarjuna Oil Refinery project in Cuddalore has also been affected due to rupee depreciation. Interestingly, HUDCO has lend Rs 300 crore for the project. The total cost of the Cuddalore project -- one of Tamil Nadu’s largest private sector projects -- is around Rs 25,000 crore.
He also said that HUDCO is also playing a major role in the Rajiv Awas Yojana which is to be implemented in 10 cities. These include Chennai, Madurai, Coimbatore, Erode, Tiruppur, Thiruchirapalli, Tirunelveli, Thoothkudi, Salem and Vellore. He said the state is likely to get Rs 5,000 crore for RAY projects. Deputy general manager (projects) R Anbu said that HUDCO’s role is to apprise the Central Sanctioning and Monitoring Committee about the proposal. He said the preliminary survey has been done and detailed project report is being awaited.
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