The Central Electricity Authority (CEA) of the Government of India has granted Techno- economic clearance for the 1873 MW Vembar Power Project in Tamil Nadu, India. At a cost of approximately $1.2 billion U. S. Dollars, the combined cycle gas turbine plant is the largest investment as well as the largest capacity project ever cleared by the CEA. Intech Global Resources Inc., Houston, a Texas-based company, will develop the prestigious power project. Because of its competitive cost, projected tariff, superior technology and environment-friendly fuel, the Vembar Project complex has the full support of the State and Central Governments in India.

The strong judicial system and committed Governments in India are beneficial for such Infrastructure projects. &All feasibility and environmental studies of the Vembar endeavor have been completed, And contracts have been inalized. ABB Power Generation, Switzerland, will be the turn-key Engineering, Procurement and Construction contractor for the venture, while Indian Power Projects Limited,(IPPL) will implement it. Indian Gas Limited, another local company, has been formed to develop a dedicated Port, re-gasification terminal and gas pipeline for supplying natural gas to the power plant.

    In addition, a search is underway to identify sources for supplies of offshore Liquid Natural Gas (LNG). The Tamil Nadu Electricity Board has initialed a Power Purchase Agreement. The financial structure of the project is being planned with a 70:30 debt equity ratio, with the debt being raised from the Export Credit Agencies, External Commercial Borrowings and Indian Rupee Loans. All equity will be in U. S. Dollars.

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