Located in the Jamnagar district of the Indian state of Gujarat, the Salaya II power project will include two units of 660MW each and will be commissioned by the first quarter of 2014.
The PPA was originally signed by the two parties in May 2010, but Essar Energy terminated the agreement due to the non-fulfilment by GUVNL of certain conditions within the required timescale.
Essar Power Gujarat, a subsidiary of Essar Energy, has now reinstated the PPA following satisfaction by GUVNL of all conditions subsequent relating to the agreement.
The PPA is to supply 800MW of power from the coal-fired plant over a 25-year period at a levelised tariff of INR2.80 per kWh (about 5.7 US cents per kWh) net of transmission costs.
