Coal & Oil (C&O) Group, through its subsidiary, Coastal Energen, is looking forward to increasing the capacity of an existing coal-based power plant at Melamaruthur in Tuticorin district of Tamil Nadu.

For the proposed expansion plan, the company intends to invest Rs 10,000 crore. As per its expansion plan, it will increase the capacity by 1,600 MW to 2,800 MW. The capacity expansion will take place once the company commissions the existing project.

At present, Coastal Energen is developing a 1,200 MW power plant with an investment of Rs 5,200 crore at Melamaruthur. The project is expected to be commissioned in June 2014.

The company already has about 1,000 acre, good enough for the project as well as its expansion.

For the existing power unit, the company has inked a power purchase agreement with the Tamil Nadu Generation & Distribution Corporation for 600 MW.