Essar Power to surrender Tokisud North coal block

Essar Power Limited has decided to surrender the Tokisud North coal block in Jharkhand owing to unexpected changes in tariff post auctions and delays in approval. The move is expected to affect coal supply to the company’s 1,200 MW Mahan TPP in Madhya Pradesh as the plant is linked to the coal block. The company now plans to rework the PPA with Madhya Pradesh state discoms. Essar Power has already invested Rs 4.9 billion in the coal block and reportedly, an additional investment of Rs 6 billion is required.

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