19 August, 2011

Essar Energy plc said it will be signing an agreement to sell one-fourth of the 1,200 MW power to be generated from its Tori station, to Bihar.

“A power purchase agreement (PPA) with the Bihar State Electricity Board (BSEB) for 300 megawatts of contracted capacity from its 1,200 MW Tori I power station which is under construction in Jharkhand”, will be signed, the company said in a statement.

BSEB has issued Essar Energy’s subsidiary Essar Power Jharkhand Ltd (EPJL) a Letter of Intent to purchase the power over a 25 year period and it is expected that a binding PPA will be signed within two months. This follows a competitive bidding process.