Rs 4000 cr power project for Essar

The Gujarat government today awarded the 1,000 mw imported coal-based power project to Essar Power at the end of a long bidding process. The proposed project will be set up at Jamnagar.

When contacted, an Essar group spokesperson confirmed the development. Essar Power will invest Rs 4,000 crore to set up the facility.

The other companies in the race for the power project were China Light & Power Hong Kong, Tata Power and Torrent Power. Essar Power had quoted Rs 2.40 a unit "� the lowest bid for the project.

The state government had invited bids for imported coal-based power projects at various locations across the state.

Essar is considering its proposed SEZ for petrochemicals as a possible location for the power project near Jamnagar.

Essar Power is currently executing a captive gas-based combined cycle power plant of 355 mw capacity at Hazira to fulfill the rising demand for power of its group company Essar Steel.

The project, whose first phase has already been commissioned, is expected to be completed by March 2007.

A 120 mw co generation plant at Vadinar, for captive use by Essar Oil's refinery and a 25 mw coal-based plant at Visakhapatnam for captive use by Essar Steel have been commissioned by the company recently.

It is finalising plans for a 1,500 mw gas-based project at Hazira. Essar Power is also exploring opportunities for new projects based on thermal, wind and hydel energy.