Coal news and updates

Essar Power commissions 1st unit of Paradip plant

April 13: Essar Power said on Monday that it has commissioned the first unit of 30 MW at its 120-MW captive Paradip power plant in Odisha. In the coming months, the balance 90 MW (3 X 30 MW) would be commissioned in phases.

The 120-MW coal-fired power plant will meet the power requirement of Essar Steel’s 12- million tons per annum integrated pelletisation facility in Odisha, comprising a pelletisation plant at Paradip and a beneficiation plant at Dabuna, connected through a 253- km 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 the plant switchyard to the main receiving sub-station (MRSS) of the 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 costs related to coal transportation would be much lower. As per the PPA agreement, fuel and water supply responsibility rests with Essar Steel (the client), 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.

Essar Power owns and operates power plants in India and Canada with a total generation capacity of 6,700 MW.