Mahan Super Thermal Power Project

Mahan I power station is a 1200 megawatt coal-fired power station under development by Essar Energy in the Singrauli district of Madhya Pradesh, India. The first 600MW generating unit was commissioned in February 2013 but was not able to produce power due to lack of coal.

Location
The project is located near Karsualal, Bandhora, Khairahi, and Nagwa villages in Singrauli tehsil, Singrauli district in Madhya Pradesh, India. The construction site, approximately 20 kilometers southwest of Singrauli town, is shown below:

Background details
Coal for the proposed plant would be sourced from the Mahan coal block through a 50:50 joint venture with Hindlaco Industries. (Note: this plant is not to be confused with Hindlaco Industries 900MW Mahan Aluminium power station which is also drawing coal from the Mahan coal block.)

Coal mine stalled
In its 2010 annual report Essar complained that the Mahan coal black had not received approval for development. "While we are optimistic of a favourable outcome, we will not be in a position to supply coal from our own mines ahead of the commissioning of the 1,200 MW Mahan I coal fired power project. The first unit of this power plant will commence commissioning in September 2011. We have therefore applied to Coal India Limited for tapering coal linkage until our own mines are operating at full capacity. We expect to receive this clearance shortly," Essar reported.

In its 2013 annual report, Essar announced that it had received stage 1 forest clearance for the coal block. Unit coal is available from the Mahan coal block, the company said that it plans to coal is seek coal from Coal India’s e-auction process and to consider the use of imported coal.

The 2013 annual reported stated company reported further:
 * The Stage 2 clearance is progressing well and is expected in the next few months and, once secured, we estimate it will take 9 to 12 months to produce first coal and it will then take between two to three years to ramp up to the full capacity of 8.5 mmtpa. In addition to e-auction and imported coal, Essar Energy has applied for medium term allocations of coal under Coal India’s tapering coal linkage system. Receipt of a tapering coal linkage allocation will improve the economics of Mahan I.

Project Details
Sponsor: Essar Energy Location: Karsualal, Bandhora, Khairahi, and Nagwa villages in Singrauli tehsil, Singrauli district in Madhya Pradesh, India Coordinates: 24.0086735, 82.4170303 Status: Unit 1: Commissioned February 2013 but unable to operate due to lack of coal; Unit 2: Construction Nameplate capacity: Unit 1: 600 MW; Unit 2: 600 MW Type: Coal Type: Coal Source: Mahan coal block (off the main basin in the Singrauli coal fields) Estimated annual CO2: 7,096,441 tons Source of financing:

Related SourceWatch articles

 * India and coal
 * Proposed coal plants in India

External articles

 * Promit Mukherjee, "Nod for Hindalco & Essar’s Mahan coal block soon", DNA, July 7, 2011.