"The third 660 MW unit of the 3,960 MW Sasan UMPP has commenced power generation, thus making 1,980 MW of capacity operational at the project," Reliance Power said in a statement.
The balance three units are in advanced stages of construction and will be commissioned over the next few months, the company said in a statement.
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Coal production has already commenced from the 20 million tonnes Moher and Moher-Amlohri coal mines associated with the power project.
With this unit, Reliance Power's generation capacity has increased to 3,865 MW which includes 3,780 MW of thermal capacity and 85 MW of renewable energy based capacity, the statement added.
The first 660-MW unit of the Sasan UMPP was commissioned in March 2013 while the second unit was commissioned in January 2014.
Shares of the company were trading at Rs 65.45, up 1.32% on the BSE.