Essar Power commissions 1st unit of 120 MW Paradip Power Plant

The 120 MW coal-fired power plant will meet power requirement of Essar Steel's 12 mn tonne integrated palletisation facility in Odisha

Essar Power, one of India's leading private sector power producers, today announced commissioning of the first unit of 30 MW project at its 120 MW captive power plant at Paradip in Odisha.

In the coming months, the balance 90 MW (3 X 30 MW) would be commissioned in phases, a company release said.

The 120 MW coal-fired power plant will meet the power requirement of Essar Steel's 12-million-tonne-per-annum integrated palletisation facility in Odisha.

The facility comprises a palletisation plant at Paradip and a beneficiation plant at Dabuna, connected through a 253 km 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, it said.

Related infrastructure like port facility for coal handling has already been set up by Essar Ports. 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. Essar Power would get paid on availability basis and a fixed operating cost, thereby providing long term revenue visibility.

With over 14 years of operating experience, Essar Power is among India's leading private sector power producers. Its portfolio consists of gas and coal fired plants in India and Canada with total generation capacity of 6,700 MW, the release said.

This portfolio is split between Captive (or Return on Asset), wherein the power produced is sold to a group company under a long term PPA with fuel and water responsibility resting with the customer company, and Independent Power plants, wherein power is sold to third party.