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Overview

ICBC pledges $1.19 billion loan for 1980 MW Coal-Fired Thermal Power Plant Construction Project at Cuddalore, Tamil Nadu

Commitments (Constant USD, 2023)$1,530,504,783
Commitment Year•2010Country of Activity•IndiaDirect Recipient Country of Incorporation•IndiaSector•EnergyFlow Type•Loan

Status

Project lifecycle

Pipeline: Pledge

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 15, 2010

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Receiving agencies

Private Sector

  • SRM Energy Limited

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Loan desecription

ICBC pledges $1.19 billion loan for 1980 MW Coal-Fired Thermal Power Plant Construction Project at Cuddalore, Tamil Nadu

Interest type•Unknown

Narrative

Full Description

Project narrative

SRM Energy received a letter of facilitation from the Energy Department of the Government of Tamil Nadu in December 2007 and December 2008 for setting up a 2,000 MW coal-based power plant at Cuddalore, which was replaced with a 'Single Window Clearing"' system in October 2009. SRM Energy then began the process of implementing 3x660 MW (1980 MW) super critical thermal power plant based mainly on imported coal in Tamil Nadu. The project site is located in Chidambaram Taluka, Cuddalore District and is 7 km away from the sea and the upcoming all-weather multi-cargo port. Then, on December 15, 2010, during a three-day visit of Chinese Premier Wen Jiabao to India, SRM Energy, the Industrial and Commercial Bank of China (ICBC), and China Datang Technologies & Engineering Co. Ltd. (CDTE) signed a Tripartite Memorandum of Understanding (MoU) regarding an export buyer's credit (backed by Sinosure) that could be used to finance 85% of the cost of $1.4 billion commercial contract between SRM Energy and CDTE. It does not appear that this financial pledge ever resulted in an official commitment (i.e. export buyer's credit agreement).