Essar Energy says Gujurat power plant now fired up

Essar Energy, the India-focused integrated energy company, says that commercial operations have begun at its 1,200 megawatt (MW) Salaya I power project.

Unit 1 is now providing up to 600MW to the grid while Unit 2 (also 600MW) has been "synchronised" and is expected to begin commercial operations in the coming weeks.

The coal-fired Salaya I project is located in Gujarat state and is being built at a total investment cost of $1.1bn. Most of the power produced will be sold to the Gujarat state electricity utility, GUVNL, under a long-term contract.

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Naresh Nayyar, the Chief Executive Officer of Essar Energy, said: "The commissioning of the first unit at Salaya is another major milestone for Essar Energy and we are also making good progress at our Mahan I and Vadinar phase 2 projects. These projects combined will add 2,910 megawatts to our generating capacity and will improve our revenues and profitability."

Over the last 12 months Essar shares have dropped 66%.

BS