New Delhi: Essar Power MP limited, a subsidiary of Essar Power, signed the Coal Mine Development and Production Agreement with the government for the Tokisud North coal block in Jharkhand on Tuesday.
Essar Power MP, won the coal block in the e-auction of coal mines for Rs 1110 per tonne. The block, which has all necessary clearances to begin mining, has extractable coal reserves of 52 million tonne. The company said that vital infrastructure like connectivity to the nearest railway sliding, merely 6 kms away, already exists, thereby reducing the block development time.
Ministry of coal issued the ‘vesting order’ to Essar Power MP on March 23.
The company owns and operates 1,200 Mw coal based power plant at Mahan in Madhya Pradesh which has been set up with an investment of Rs 8,000 crores. With this coal mine acquisition, the company will commence mining operations to power the Mahan Power Plant within a few months.
The coal block would provide a big boost to re-energise the Mahan Power Plant, which was idle due to lack of coal for the last 18 months. With Tokisud North coming on stream, 1,200 Mw of power from the plant would soon be available to the country.
The company is also in the process to sign long term Power Purchase Agreements (PPAs), said the company’s statement.
