Essar Group is planning to set up a 1,200 megawatt power plant at Jamnagar.
Essar has entered into a 25-year power purchase agreement with the Gujarat government to supplying 1,000 MW of power.
Reliance Industries Ltd would sell power at 40 cents per unit.
Tata Power had quoted the rate of 42 cents per Unit.
Essar has quoted the rate of 46 cents per unit for the power it would sell to the state government.
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