Essar Power plans to resume works at Hazira plant

Essar Power plans to resume works at Hazira plant

Three years after shutdown, Essar is planning to recommence operations at Hazira plant.

The Dollar Business Bureau

Essar Power is mulling plans to begin operations at its 500 MW multi-fuel combined-cycle power plant at Hazira in Gujarat by next quarter.

The Bhander Power Hazira plant was established in 2006, and by October 2008 operations began in full fledge. However, due to high prices of fuel, the company suspended its operations three years ago.

Sushil Maroo, Executive Vice Chairman at Essar, stated that the operations were suspended at Hazira gas-based plant due to non-availability of fuel at the favorable costs. The expensive fuel at staggering $12-14 per mmbtu stopped from even dreaming of power generation and without much of choice the plant’s shutters were down, he added.

However, as the prices are falling now, the company will begin operations at Bhander plant soon.

Though the prices are expected to come down further from the current $4.5-5 per mmbtu, Maroo stated that rather than keeping the plant idle, the operations can be commenced at the current rates too.

The company has also initially kept 515 MW Essar Power Hazira plant on ready mode, but are waiting for prices to go down further, added Maroo.

However, after procuring the gas at lower rates, the next hurdle for the company is LNG regasification.

 

 

The Dollar Business Bureau - Jun 13, 2016 12:00 IST
 
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