Essar Power is planning to expand its thermal power capacity by generating an additional 2,790 MW capacity by FY16.

The expansion is expected to result in a total operational capacity of 6,700 MW by 2016 from its current capacity of 3,910 MW.

The company is constructing 990 MW capacity which is expected to be commissioned during FY14. This includes 600 MW coal-based Mahan Phase-I project in Madhya Pradesh; 270 MW multi-fuel plant in Hazira district of Gujarat; and 120 MW Paradip coal-based plant in Orissa.

Apart from this, the 1,200 MW Tori Phase-I and 600 MW Tori Phase-II projects in Latehar district of Jharkhand are expected to be completed by FY16. The project is estimated to cost Rs 9,700 crore.

Of the 3,910 MW operating generation capacity, 515 MW is from gas-based projects that are operational in Hazira, Surat district of Gujarat wherein 215 MW is supplied to Essar Steel's Hazira steel plant, and 300 MW to Gujarat Urja Vikas Nigam. Other operational power plants in Gujarat include Bhander Power's 500 MW gas-based plant located in Hazira and 1,200 MW Salaya-I imported coal-based power plant in Salaya district.