India’s Essar Energy said its Essar Power Gujarat Limited (EPGL) unit had won a power purchase agreement (PPA) with Gujarat Urja Vikas Nigam Limited (GUVNL).

The agreement for 800MW of contracted capacity will come from the 1,320MW coal-fired Salaya II power project to be located in Jamnagar district, Gujarat, India.

The PPA is valid for a period of 25 years from the start of commercial operations. Under the terms of the PPA, EPGL will supply power to GUVNL at a levelled tariff of 6.2¢ a kWh.