Essar Group, which is hogging the limelight for its ongoing moves to sign partnership deal with Vodafone, has been simultaneously pursuing its plans through its arm Essar Power to investment over Rs 13,000 crore in power and mining projects during 11th plan (2007-12). The company proposes to set up 1,000 mw each coal based power projects in Maharashtra and Jharkhand while it has launched development of 1,200 mw pit head coal based power project in Madhya Pradesh.

The company last week has been allotted a captive coal mine at Chakla, Jharkhand with the potential coal reserves of 110 million tonne while Essar Power in joint venture with Hindalco has launched development of captive coal mine alloted in Mahan, Madhya Pradesh last year with the coal reserves of 180 million tonne.

In case of Madhya Pradesh mining venture, Essar Power and Hindalco would contribute 50% equity each in the total 30% equity while raise 70% debt. The entire project entails an investment of Rs 400 crore and the JV company would be able to start coal production from 2010.

Essar Power would use 60% coal while the balance 40% by Hindalco. Essar Power Sources told FE the company would develop Chakla coal mine on its own and it would need an investment of Rs 400 crore. The coal to be produced from this mine would be use for its proposed 1,000 mw pit head coal based project in Jharkhand. The proposed power project with 1,000 mw capacity would be located near the mine. According to sources, the company has already written to the Maharashtra government for the setting up of 1,000 mw imported coal based power project at Vile Bhagad in the coastal Raigad district.

The state government had initially signed memorandum of understanding with Tata Power Company for similar site.