The Rs 23,000 crore Essar group is among the top two shortlisted companies for the 600 mw power plant at Cerebon in western Java, Indonesia, along with an international consortium of Marubeni, Kompo, Tripatra and Samptan. Other bidders for the project include Malaysia's YTL and a consortium comprising Bakrie Power, Indonesian Power and Barcock.

An Essar group spokesperson said the bids were opened last week and a decision on the bid will be announced by the end of this week. If it wins the bid, Essar Power will have to invest close to Rs 2,500 crore in the plant.

The Indonesian state electricity firm, PT Perusahaan Listrik Negara (PLN), floated the tender for the coal-fired plant early this financial year and will be exclusive buyer for the power generated.

Currently, Essar Power runs a 515 mw plant at Hazira, Gujarat. It is also executing 355 mw plant at captive gas-based combined cycle power plant in two phases at Hazira. This is expected to be commissioned by March 2007. Also it is setting up a 32 mw coal-based captive plant at Vishakhapatnam.

The company has ambitious plans of expansion and wants to be a 3,000 mw power-producing company. It is planning an investment of Rs 6,000-7,000 crore in the sector.