Essar Power commissions 600 MW capacity at Salaya in Jamnagar

Essar Power Ltd today started commercial production of the first unit of 600 MW at Salaya in Jamnagar district of Gujarat.

The company has set up two units of 600 MW each at Salaya at a capital outlay of $1.1 billion (nearly Rs5,500 crore).

While the first unit has started commercial production, the second one has been synchronised with the state transmission grid and is expected to go on stream in May, according to KVB Reddy, director, Essar Power.

The coal-fired Salaya-I project is among three power projects slated for  commissioning by Essar Power in 2012, the others being the 1,200-MW Mahan-I, a captive coal-fired pithead power plant in Singarauli district of MP, and the 510-MW Vadinar P2 project in Gujarat.

Between them the three projects would add 2,910 MW to the existing capacity of 1,600 MW and up Essar Power's total installed capacity to 4,510 MW, Reddy said.

The company operates four power plants in India and one in Algoma, Canada.

According to Reddy, it was a matter of great satisfaction that many of the company's power projects were progressing well in terms of completion and operation. He added that the completion of the projects would add to the revenues and profitability of the company.