Essar Power plans to make its 2x600 MW Tori power plant operational by the next financial year as the company expects to secure new fuel through government's upcoming coal linkage auction, a company spokesman told ET. The plant, which is 43 per cent complete, will be built at an investment of Rs 4,100 crore.
"All approvals for the plant are in place and the company has also signed long-term power purchase agreements for the project with Bihar and Jharkhand," the spokesperson said.
The promoters of the company have infused close to Rs 1,500 crore as equity in the project. The current debt of the project stands at Rs 2,600 crore. The company is also in process of re-operationalising unit II of 2x600 MW Mahan power plant by November this year as it plans to secure coal through special forward e-auctions in the short term. For longterm fuel security, the company looks to make coal available from its Tokisud coal mine.
"The restart of unit I has been possible due to the government making coal available through e-auctions and aligning coal prices to the current market scenario. Mahan plant has already secured over 12 lakh tonne coal through special forward e-auction of Coal India (CIL). Company will be participating in further e-auctions being done by CIL," Essar said.