Essar Energy’s 3,120MW Salaya power project is being developed over three phases. Courtesy of Essar Energy.
Construction of phase I of the project started in 2010. Courtesy of Essar Energy.
The 1,200MW Salaya I started operations in June 2012. Courtesy of Essar Energy.
The Salaya power project is a coal-fuelled thermal power plant. Courtesy of Essar Energy.
A 400kV switchyard has been constructed as part of the Salaya I project. Courtesy of Essar Energy.


Salaya power project is located in the Jamnagar district of Gujarat, India. It is a 3,120MW coal-fuelled thermal power plant proposed to be built over three phases (phase I – 1,200 MW, phase II – 1,320MW, phase III – 600 MW). The project is being developed by Essar Power, a subsidiary of Essar Energy.

The 1,200MW phase I of the project, Salaya I, was completed in June 2012 with an investment of $1.1bn. Salaya I includes two 600MW generating units. Phase II and III of the project are currently under construction.

Salaya power project details

The Salaya power project site is spread over an area of 330ha. Coal for the plant is transported through a 17km-long conveyer from Essar’s own jetty established for importing coal.

The first 600MW generating unit of Salaya I was synchronised with the Gujarat state transmission grid in November 2011 and began commercial operations in April 2012, when the second 600MW generating unit was synchronised with the grid and then commissioned in June 2012.

“Salaya I will use coal imported from the Aries coal mine in Indonesia.”

Salaya I will use coal imported from the Aries coal mine in Indonesia, which was acquired by Essar in April 2010.

The proposed phase II of the project, Salaya II, will include two 660MW units. It will also use imported coal as fuel but the source of coal for Salaya II has not been decided yet.

Phase III of the project, Salaya III, will be a petroleum coke and thermal coal-based power plant. It will use circulating fluidised-bed combustion (CFBC) technology and consist of four 150MW generating units. The plant will use petroleum coke purchased from Essar’s Vadinar refinery located near the plant.

As of January 2013, the engineering and procurement works for Salaya II and III are in advanced stage and both plants are under construction. Both phases are scheduled to be commissioned in 2014.

Salaya I plant makeup

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The two generating units of Salaya I plant feature a pulverised boiler, cooling tower and transformer yard.

Coal is milled and fed with air into the burners. Heated coal converts the water passing through the boiler pipes into super heated steam. The generated steam spins the turbine generator to create electricity, with the low-pressure steam then sent through a condenser and converted back to liquid water for reuse in the boiler.

The plant uses seawater for cooling purposes. Flue gases generating by the plant are sent through an electrostatic precipitator (ESP) that captures fly-ash particles.

Other facilities at the plant include a coal stockyard, coal mills, a DM plant, a desalination plant, a 400kV switchyard, a main control room and an administration building.

Salaya power purchase agreement

In May 2010, Essar Power signed a power purchase agreement (PPA) with provincial state-owned utility Gujarat Urja Vikas Nigam Limited (GUVNL) to supply 1,000MW of power at a price of Rs2.40 ($.044) per unit.

In October 2011, another PPA was signed with GUVNL for Salaya II to supply 800MW of power over a 25-year period at a price of Rs2.80 ($.051) per unit.

Financing of Salaya Power Project

In September 2008, Essar power entered into a loan facility agreement worth $546.80m with a group of lenders led by State Bank of India. The company entered into another agreement with ICICI Bank for a loan facility of $219.58m in May 2009.

Contractors involved in Salaya Power Project

“In September 2008, Essar power entered into a loan facility agreement worth $546.80m with a group of lenders led by State Bank of India.”

The engineering, procurement and construction (EPC) contractor for the Salaya power project is Essar Projects. The basic engineering works of the power plant were carried out by Essar Engineering (EESL) in consultation with Tata Consulting Engineers (TCE).

The boilers, turbines and generators for Salaya I were provided by Harbin Power, China.

The Electrical Balance of Plant (EBOP) contract was awarded to Areva and the Instrumentation Balance of Plant (IBOP) contract was given to ABB. The cooling water system for the plant was provided by Kirloskar Brothers. The desalination plant and the DM plant were provided by IDE and Thermax respectively. McNalley Bharat provided the Ash Handling System for the plant.

Boilers for Salaya II have been contracted to Harbin Power and the turbine generators have been contracted to Toshiba.

Foster Wheeler will supply four CFBC boilers for Salaya III power plant. Siemens will provide the turbine generators for Salaya III.