Essar Power commissions the first unit of 120 Mw Paradip power plant

The company said logistical cost related to coal transportation will be much lower now

Essar Power, commissioned the first unit of 30 Mw power at its 120 Mw captive Paradeep power plant in Odisha. In the coming months, the balance 90 Mw (3 X 30 Mw) would be commissioned in phases.

The 120 Mw coal fired power plant will meet the power requirement of Essar Steel’s 12 million tons per annum integrated palletisation facility in Odisha, comprising of a palletisation plant at Paradeep and a beneficiation plant at Dabuna, connected through a 253 kms slurry pipeline.  Upon completion, Essar Steel would have access to cheap and reliable power supply, thereby improving its competitive edge.

The 220 kV transmission line from plant switchyard to Main Receiving Sub Station (MRSS) of steel plant has already been commissioned for power evacuation.  Related infrastructure like port facility for coal handling has already been set up by Essar Ports. 

The company said in a statement being a port backed facility, logistical cost related to coal transportation will be much lower. As per the PPA agreement, fuel and water supply responsibility rests with the client (Essar Steel), thereby insulating Essar Power from the vagaries of coal price volatility. The company would get paid on availability basis and a fixed operating cost, thereby providing long term revenue visibility, said Essar Power.