KSK Power Ventur has commenced power generation from the first unit of the 540MW Wardha Warora coal-fired plant in the Indian state of Maharashtra.

The project is undertaken through a special purpose vehicle, Wardha Power Company (WPCL), and has a coal linkage from Western Coalfields. WPCL has commenced the testing of the power plant parameters, post synchronization with the grid and based on the coal procured from Western Coalfields.

Entire power generated from the first two units will be supplied to Maharashtra State Electricity Distribution Company under a short term PPA. WPCL has recently received a letter of intent from a distribution licensee in Maharashtra for firm procurement of power in excess of 290MW for the period from April 2011 to March 2014.

WPCL has already contracted power supplies on long term basis, from the balance available capacities from the other units (III and IV), expected to go on stream in 2010.

TL Sankar, non executive chairman of KSK, said: “While the company has faced challenges in execution due to change of regulations and other factors, the commencement of power generation at Wardha is the beginning of a new chapter in the company’s growth and demonstrates the operating team’s capability to scale up and build large sized power projects (500+ MW) in India with all the associated support infrastructure of power evacuation, coal transportation and water intake systems.”