Projects Today reported that Essar Power has reportedly drawn up investment plan worth INR 20,000 crore to augment its power generation capacity from 4,800 MW to 6,000 MW by 2012.

The proposed capacity expansion plans has a debt equity ratio of 3:1. It is in advanced stage to raise INR 15,000 crore through debt from the public and private lenders including State Bank of India and PFC while the remaining INR 5,000 crore will be infused by the company as equity.

These funds are likely to be used for its 4 power projects, 3 thermal plants and a cogeneration plant. The projects include 1,200 MW pithead coal fired Mahan thermal power plant at Sidhi in Madhya Pradesh, a 1,200 MW imported coal based and a 900 MW gas and liquid fuel power plant at Jamnagar in Gujarat and another 1,200 MW pithead coal based power plant at Tori in Jharkhand.

Essar has tied up boiler turbine generator package with Harbin, China and Siemens and has also finalized the EPC contracts. It has also finalized fuel linkages for all plants, this includes overseas linkages for imported coal from Indonesia and Mozambique mines. In India, it has been awarded 2 captive coal mines at Chakla and Ashok Karkata in Jharkhand. It has signed PPAs with the state electricity authorities.

Besides, it is planning to add 200 MW of wind energy by 2012. In Gujarat, construction work is on for 100 MW of wind energy while the company is in the process of acquiring land for another 100 MW in Tamil Nadu.

(Sourced from Projects Today)