Tuesday, February 26, 2008

Jamnagar - Essar Power Ltd to import Coal from Indonesia

Essar Power Ltd is planning to fuel its Jamnagar Plant by Coal from Indonesia, Ruia brothers are planning to spend up to $500 million to acquire a coal mine in Indonesia.

Essar Power is thinking of an alternative fot making a long-term supply contract for 6 million tonnes (mt) a year of coal for its 1,200MW power plant at Jamnagar.

This adds Essar to a list of Indian Power co. who have recently struck similar deals like Tata Power Co. Ltd, Star Emmsons Resource, Reliance Energy Ltd and PTC India.

Essar's Jamnagar plant will cost around Rs 4,800 crore. Essar will supply 1,000 MW to the Gujarat State on a long-term basis at Rs 2.40 per unit.

Essar can sell the remainder to a customer of its choice at a price of its choosing. The project will compose of two units of 600 MW each and project is likely to be commissioned by 2012.

--
Brip

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