GDF Suez, partially owned by the French government, is planning to buy 74 per cent stake in the 1,000 MW coastal thermal plant from Meenakshi Energy (MEPL) for approximately Rs 650 crore. 

With this buyout of stake, the equity valuation of the coastal thermal plant has reached around Rs 900 crore. The thermal power plant project, worth Rs 6,000 crore, located in Krishnapatnam in Andhra Pradesh, mostly fuelled by imported coal, has been partially commissioned.

The plant has been developed in various units. Unit-I of 300 MW has already been commissioned and is in the process of increasing its capacity by another 700 MW by 2015.

Meenakshi Energy has already signed an agreement with power trading firm, PTC, for its first commissioned unit of 300 MW, under which the PSU will supply coal to the unit in return for an equal value of electricity.

No official announcement has been made by the Meenakshi group regarding the agreement which is still in the process of negotiations with GDF Suez.

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