Essar to import $1 bn power tools from China

New Delhi: Essar Group, which has announced an investment plan of Rs 15,000 crore to set up three power plants of 1,200 MW each, has placed an order for power plant equipment for two projects to a Chinese firm Harbin Power at an estimated cost of USD 1 billion.

Harbin Power is one the China's largest power plant equipment manufacturers, with a production capacity of 30,000 MW of power plant equipment per annum.

Under the agreement, Essar will import four Boiler Turbo Generator (BTG) packages and other project materials for two mega power projects being set up by Essar Power( Gujarat) at Jamnagar and Essar Power (MP) at Mahan in Madhya Pradesh.

When contacted, the company officials confirmed the development but refused to divulge further details. The industry sources have placed the order value at around USD 1 billion.

Essar is the first company to set up a power project after the power sector was liberalised and currently operates three plants with an generating capacity of 1,200 MW.

In addiction, with another planned power plant of 1,200 MW in Jharkhand, Essar will have a total generation capacity of 6,000 MW over the next five years.

The company has already got the approval for requisite coal allocation as well.

The cost of the each proposed project has been estimated at about Rs 5,000 crore and is expected to be funded on the basis of debt-equity of 3:1, said sources.

The company is developing a coal mine, jointly with the Aditya Birla group for supplying coal to Mahan project. For Jamnagar plant, it has decided to import coal and is in the process of tying up for coal supplies.