Private sector power producer Essar Power has commissioned the first 30 MW unit at its Paradeep 120 MW captive power plant in Odisha, India.

The coal-fired on-site power plant will meet the requirements of Essar Steel’s 12 million tonnes per annum integrated pelletisation facility (pictured) in Odisha, comprising of a pelletisation plant at Paradeep and a beneficiation plant at Dabuna, connected through a 253 km slurry pipeline.

The balance of 90 MW, representing three additional 30 MW units, is to be commissioned in phases. Upon completion, Essar Steel will have access to cheap and reliable power supply, improving its competitive edge, the firm said in a statement.

A 220 kV transmission line from the plant switchyard to the steel plant’s main receiving substation has already been commissioned.

Essar Power said that, per the power purchase agreement, fuel and water supply responsibility rests with the client (Essar Steel), insulating Essar Power from coal price volatility. Essar Power will be paid on an availability basis and a fixed operating cost, providing long-term revenue visibility.