With this, Essar Power's installed capacity now stands at 4,705 MW, a company release said.
The 120 MW imported coal-based power project at Paradip, Odisha, is developed by Essar Power Orissa Limited, a subsidiary of EPoL.
This has been set up as a captive power plant to meet the requirements of Essar Steel India's 12 million tonne pellet plant in Odisha, it said.
The facility comprises a pelletisation plant at Paradip and a beneficiation plant at Dabuna, which are connected through a 253-km slurry pipeline.
With the commissioning of unit, Essar Steel will be able to further reduce its power bill and enhance its competitive edge, the release added.
Essar Power has plants in the country and Canada with a total generation capacity of 6,100 MW by 2020, of which 4,705 MW is operational.
Of the total operational capacity, 3,105 MW are coal-based and 1,600 MW gas-based. The operating plants include those in Mahan, Hazira, Salaya, Vadinar and Paradip. A 1,200 MW plant at Tori in Jharkhand is underdevelopment.
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