Essar Power would invest Rs 4,000 crore (Rs 40 billion) for setting up a 1,000 MW coal-fired power plant in Chhattisgarh, a senior Essar group official said in Raipur on Tuesday.
"We have decided to construct a 1,000 MW power plant in Korba district with an investment of Rs 4,000 crore," H S Sethi, resident director of group company Essar Steel (Chhatisgarh) Ltd, told PTI.
The power plant would have two units of 500 MW each and would supply electricity to Essar Steel's upcoming 3.2 million tonnes steel plant in Dantewada district, Sethi said.
The steel plant is located about 450 km from the state capital, in a location close to Baila Dila iron ore mines, he said, adding this district had huge iron ore deposits but but lacked in coal.
This prompted the Essar Group to set up a power plant in coal-rich Korba district, he said. The investment in power plant is in addition to what the Essar group is pumping is the steel plant, which entails an investment of about Rs 6,500 crore (Rs 65 billion), he said.
The power plant would be operational within two years, before the commissioning of the steel project, Sethi said.
Essar Steel would require about 300 MW and the balance would be sold to Chhatisgarh State Electricity Board, he said, adding they have initiated talks with state government to get necessary approvals for setting up the power plant.
Ruias-controlled Essar Power runs a power plant near Hazira in Gujarat and plans to build more projects in India and abroad.
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