AHMEDABAD: Essar Power commenced commercial operations of first unit of 600 MW of Salaya 1. The unit has been synchronised with the state transmission grid and is expected to start commercial production in May 2012. The coal fired Salaya I project, with a total 1,200MW capacity has been set up at a cost of $ 1.1 billion.
Essar Power will commission total capacity of 1200 MW to supply 1,000 MW of power to state owned Gujarat Urja Vikas Nigam Limited (GUVNL) under the long term power purchase agreement (PPA). Under another PPA signed in May 2010, Essar Power has agreed to supply 800 MW of power to GUVNL by 2014.
“Salaya I is one of three power projects due to be commissioned in 2012, the others being the 1,200 MW Mahan I project and the 510 MW Vadinar P2 project. Together these three projects will add 2,910MW to the existing capacity of 1,600MW and take Essar Power’s total installed capacity to 4,510MW,” read company’s media statement.
Commenting on the development Essar Power director KVB Reddy said, “It is a matter of great satisfaction that many of our power projects are progressing well in terms of completion and operation. This bears testimony to the Essar Power’s capability to bring to fruition the projects that we have undertaken. The completion of the projects will add to the revenues and profitability of the company.”
Essar Power is one of India’s leading private power producers with a 14-year operating track record. The company’s power business currently has four operational power plants in India and one operational power plant in Algoma, Canada, with a total installed generation capacity of 1,600 MW.