Essar Energy synchronises Vadinar P2 unit 1 to the grid

Essar Energy has synchronised the one of two 255 MW units at its Vadinar Phase 2 power generation project in Gujarat with the transmission grid.

Most of the power generated by Vadinar P2 will be sold to Essar Oil's refinery at Vadinar.

"The synchronisation of unit 1 at Vadinar P2 is another step forward for our power business and when it is commercially operational, this project will also improve margins at the refinery," said company's chief executive Naresh Nayyar.

The coal-fired Vadinar P2 project, with 510 MW capacity, is one of three power plants being completed by Essar Energy during 2012. Included are the 1,200 MW Salaya I project in Gujarat and the 1,200 MW Mahan I project in Madhya Pradesh.

These three projects will take Essar's total installed capacity to 4,510 MW by 2012.

He further said that some power will also be sold to Essar Steel and some in the merchant market.

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