OREANDA-NEWS. Essar Power Gujarat Ltd (EPGL), which owns and operates a 1,200 MW imported coal fired thermal power plant at Salaya in Gujarat’s Devbhumi Dwarka district, has had a very successful December in terms of financial and operational performance. The company clocked revenues of Rs 157 crore, which includes revenue of Rs 21 crore from merchant sales, and achieved an EBIDTA of Rs 50 crore.

EPGL recorded its highest ever quarterly revenues from merchant sales since commercial operations commenced—Rs 65 crore for the quarter ended 31st December 2015. While EPGL achieved a plant availability of 93% in December, the quarterly availability (for the quarter ended 31st December 2015) was at an all-time high of 97%.

Commenting on the performance, Mr Ramesh Kumar, MD, Essar Power Gujarat, said, “Our company expects to make significant gains from the drop in the cost of coal and improvement in efficiency. Coal prices are expected to fall further in 2016 because of weak global demand. Also, domestic interest rates are expected to further soften. This will give EPGL financial flexibility in terms of higher cash flow and lower funding costs in the coming fiscal.” 

Once completed, the sea water pipeline and jetty coal conveyor at the Salaya plant will reduce operational costs by about Rs 150 crore annually. EPGL is thus expected to achieve greater operational efficiency, higher profitability and substantial growth in FY 2016-17 and thereafter. 

The Salaya unit, whose capacity equals about 10% of Gujarat state’s overall power demand, is among the best operated power plants in the country. It has won recognition and awards in energy efficiency, environment and safety management practices. In the current financial year, EPGL has received the CII Award for Energy Efficiency, the Gold Category Award for Safety from Greentech Foundation, and the Peabody Award for lowest emission of SO2 and NOX.

About Essar Power Ltd
Essar Power Ltd is one of India's top five private sector power producers with over 20 years’ operating track record. Essar Power owns power plants in India and Canada with a total generation capacity of 6,100 MW, of which 4,675 MW is operational.

Of the total operational capacity, 3,075 MW is coal-based, while 1,600 MW is gas-based. The operating plants in India are at Mahan, Hazira, Salaya and Vadinar. A 1,200 MW plant at Tori in Jharkhand state is under commissioning. Essar has set up these projects at very competitive capex. The company is in the process of securing additional raw material sources.