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“Our focus now is on the development of Mahan coal block which will provide low-cost fuel source for the power plant,” Essar Energy chief executive officer Naresh Nayyar said
Mumbai: Essar Power announced synchronisation of the first 600 MW unit plant of its 1,200 MW Mahan I project in Madhya Pradesh, reports PTI.
With this, the total power generation capacity of Essar Power stands at 3,910 MW, as against 1,220 MW at the time of the company’s IPO in May 2010, a statement issued said.
“Our focus now is on the development of Mahan coal block which will provide low-cost fuel source for the power plant,” Essar Energy chief executive officer Naresh Nayyar said.
Mahan I is using a combination of imported coal and coal sourced from Coal India’s e-auction process, while an application has also been made for an interim tapering coal linkage allocation from CIL, the release said.
Coal from these sources will be required until nearby Mahan coal block is operational.
Essar Power has received stage 1 forest clearance for the Mahan coal block. The second 600 MW unit at Mahan I is expected to begin commercial operations during the first quarter of the next financial year, the release said.
Mahan I has investment of $1.2 billion and is the company’s third coal-fired power project to enter commercial operations during the year, with a total capacity of 2,310 MW.
The Salaya I plant, also 1,200 MW, was completed in June, while the 510 MW Vadinar P2 plant was completed in November.
The Vadinar plant is providing power to Essar Oil's refinery here, where availability of the coal-fired generation is having a positive impact on refining margins, it said.