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Future Plans

Projects under development

Essar Power plans to increase its installed capacity to 6,000 MW by 2012.The Group's power business has finalised the following new projects that are under various stages of development.

1,200 MW pit head coal based Mahan Thermal Power Plant, District Sidhi, Madhya Pradesh:

Essar Power Limited proposes to set up the 1,200 MW Mahan Thermal Power Project in the Madhya Pradesh. The proposed power plant will have two (2) units of 600 MW each. The project is expected to be commissioned by 2012 at an estimated project cost of Rs 4900 crores.

The Ministry of Coal, Government of India has allocated Mahan Coal Block jointly to Essar and Hindalco Industries Limited. A joint venture company, Mahan Coal Limited, has been set up by the Essar Power Limited and Hindalco Industries Limited to develop the coal mine.

The power generated from this project is proposed to be supplied to the State of Madhya Pradesh, other States and large industrial consumers.

1,200 MW Imported Coal Based Power Plant at Salaya, District Jamnagar, Gujarat:

In January 2007, Essar Power Limited had participated in the competitive bidding invited by Gujarat Urja Vikas Nigam Limited for procurement of power on long term basis and was declared as one of the successful bidders. Essar Power Limited has already signed the Power Purchase Agreement with Gujarat Urja Vikas Nigam Limited for supply of 1,000 MW on long term basis. The proposed power plant consists of two (2) units of 600 MW each and is expected to be commissioned by 2012.

1,200 MW Pithead Coal Based Power Plant at Tori, District Latehar, Jharkhand:

Essar Power Limited has been awarded two captive coal mines i.e. Chakla and Ashok Karkata coal mines in the State of Jharkhand by the Ministry of Coal, Government of India. The Company is planning to set up a 2x600 MW Coal Based Power Project. The Company has initiated the process for land acquisition, environment and forest clearances and expects to commission the project by 2012.

An additional 1,200 MW is under development in various parts of the country.