Tamil Nadu based GEMAC Energy on 3 May 2010 signed an MoU with Shangdong Electric Power Company-III (SEPCO-III), a China based EPC contractor, for setting up a 1,320 MW thermal power project at Cuddalore, Tamil Nadu.

Under the MoU, SEPCO--III is likely to build the Rs 6,000-crore power plant. GEMAC is holding talks with SEPCO-III for a possible equity investment into the power project. The project is likely to have a debt-equity ratio of 75:25.

According to sources, a substantial debt funding for the project is expected to come from China to support the purchase of equipment from China. SEPCO-III is likely to procure the main pieces of equipment - boilers and turbine-generators - from Harbin, Shanghai Electric and Dongfang.

The MoU between SEPCO-III and GEMAC also covers jointly undertaking EPC contracts in India.

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