Essar plans Rs 4,800-cr power plant in Vadinar

The company is planning to expand the refining capacity of the refinery to 34 million tonnes per annum (mtpa) from the current 10.5 mtpa.

"The order for equipments has already been placed and the work has started," said Arun K Srivastava, managing director, Essar Power. The refinery, which started commercial production in May this year, already has a 120 mw power plant for captive use.

The new power plant will have both coal-based boiler and gas turbine for power generation. "Coal for the plant will be imported, which will also cater to the needs of the company's other upcoming project in Gujarat," said Srivastava.

The company signed a power purchase agreement with Gujarat Urja Vikas Nigam and is in the process of setting up a 1,200 mw coal-based power plant close to Vadinar at Salaya. The Salaya plant is expected to be commissioned by 2012.

The Vadinar plant will be completed in two phases. In the first phase, a 330 mw plant will be commissioned by September 2009. While in the second phase, a 900 mw plant will be commissioned by December 2010.

The company is looking at a debt-equity ratio of 70:30 for the power plant, he said.