The Rs 735-crore Essar Power Ltd (EPL) expects to commission its gas-based 125-mw power plant at Vadinar, under the aegis of Vadinar Power Company (VPCL), by this November.

VPCL is investing Rs 455 crore for the plant to be captively used for its upcoming petroleum refinery at Vadinar in Jamnagar district.

A K Srivastava, managing director of EPL, said, "We have also sought nod from the state to mine lignite to set up a lignite-based power plant in Kutch." In another development, the first phase of the 350-mw power plant at Hazira is ready to be commissioned on Thursday.

The power generated from this plant would be used extensively for Essar Steel's plant in the vicinity.

"The first plant under the 155 mw block _ phase I of the 350 mw power plant at Hazira _ will be commissioned on Thursday. The cost of the entire 155 mw block was Rs 280 crore." The remaining 200 mw block will be totally commissioned by the end of September 2006 and will require an investment of Rs 440 crore.

"We expect another 60 mw capacity to be added by this September and 120 mw more will be added to this plant by January next year. By September 2006, we will commission the remaining 70 mw facility thus completing the entire 350 mw capacity plant," Srivastava said.

"We will use liquefied natural gas (LNG) to fuel the entire plant as Essar Steel has tied up with major LNG suppliers such as Petronet LNG Ltd, Gujarat State Petroleum Corporation Ltd (GSPCL) and Gail India Ltd. This will enable use to produce cheaper power from this plant," he said.

The 125 mw power plant to feed the upcoming oil refinery would be commissioned by November this year, Srivastava said. "The proposed power plant for the refinery which is being developed by VPCL will be ready in six months and envisages an investment of Rs 455 crore. The power generated from this plant would be used for the refinery entirely. We have already finalised plans to augment our generating capacity overall to 2,000 mw from the existing 515 mw at an investment of Rs 4,000 crore, which works out to approximately Rs 2.7 crore per mw. We are also looking at distribution," he added.