" This blog is a integrated approach towards tracking the Indian power sector
which is evolving, having a great potential with prosperous future."



Saturday, March 5, 2011

Essar Energy misses deadline to commission Salaya-1 power project in Gujarat by Febraury 27, 2011

London listed Essar Energy has missed the deadline to commission Salaya-1 power project in Gujarat by February 27, 2011. According to an agreement with the state government owned, GUVNL (Gujarat Urja Vikas Nigam Limited), Essar has to sell electricity to the state failing which the company will attract a penalty of Rs 1 crore/day for two months which can be increased to Rs 1.5 crore/day.
Essar Energy is in agreement to provide 1000 MW to GUVNL at Rs 2.40/unit. Essar Power Gujarat, held by Essar Energy, is in the process of setting up the Salaya-1 power project with a total capacity of 1200 MW.Sources say Essar Energy and GUVNL are in consultation for the waiver of penalty, decision is expected in the next 10-15 days. Essar expects to commission the first unit of 600 MW capacity by April this year and complete the project with 1200 MW capacity by August 2011.
Sources say Essar's project got delayed primarily due to the delay in getting necessary environmental clearances. Approvals for setting up jetty have still not been acquired and may impact the project as it's an imported coal based plant. But, Essar officials assure that coal may be transported from alternate sources.Essar Energy management declined to give an official comment. GUVNL officials said no decision has been taken on the penalty issue.

No comments:

Post a Comment