The coal-fired plant Mahan I located in the Indian state of Madhya Pradesh is the company’s eighth operational power plant which increased its total generating capacity to 3,910MW.
Essar has invested $1.2bn in Mahan I project.
The plant deploys a mixture of imported coal and coal sourced from Coal India’s e-auction process until now, however it will use coal from Essar Power’s nearby Mahan coal block, once it becomes operational.
Essar Energy CEO Naresh Nayyar said the company has commissioned the first unit of the Mahan I coal-fired plant.
"With this, we have more than tripled our generation capacity over the past couple of years," Nayyar added.
"Our focus now is on the development of the Mahan coal block which will provide a low-cost fuel source for the power plant, placing it among the lowest cost power generators in India."
The 600MW unit 2 at Mahan I is expected to go online during the first quarter of the next financial year 2013-14.
