Odisha Sun Times Bureau
Bhubaneswar, Apr 13:
Essar Power, one of India’s leading private sector power producers, commissioned the first unit of 30 MW power at its 120 MW captive Paradeep Power Plant in Odisha, said a company release issued here today.
In the coming months, the balance 90 MW (3 X 30 MW) would be commissioned in phases, the release said.
The release said the company’s 120 MW coal fired power plant will meet the power requirement of Essar Steel’s12 million tons per annum integrated pelletization facility in Odisha, comprising of a pelletisation plant at Paradeep and a beneficiation plant at Dabuna, connected through a 253 kms slurry pipeline.
Upon completion, Essar Steel would have access to cheap and reliable power supply, thereby improving its competitive edge.
The 220 kV transmission line from plant switchyard to Main Receiving Sub Station (MRSS) of steel plant has already been commissioned for power evacuation.
Related infrastructure like port facility for coal handling has already been set up by Essar Ports.
Being a port backed facility; logistical cost related to coal transportation will be much lower.
As per the Power Purchase Agreement, fuel and water supply responsibility rests with the client (Essar Steel), thereby insulating Essar Power from the vagaries of coal price volatility.
Essar Power would get paid on availability basis and a fixed operating cost, thereby providing long term revenue visibility.
The company is one of India’s leading private power producers with over 14-year operating track record and owns and operates power plants in India and Canada with a total generation capacity of 6,700 MW. (IANS)