No injuries or loss of life was reported in the incident.
"The blaze broke out at the generator transformer of the plant, after which power generation at unit numbers 10 and 11 totalling 500 MW, has been stopped," Satpura thermal power plant's Public Relations Officer Shashikant Malviya said.
The blaze, which started in the wee hours, was brought under control by the fire rescue team after nearly five hours, he said.
"Due to the fire, the power generation has reduced to nearly half at 620 MW. The total capacity of the power station is 1330 MW," the official said.
Senior officials at Jabalpur have been informed about the fire and its cause will be known only after a probe, he said.
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