August 18, 2011. Essar Energy plc said it will be signing an agreement to sell one-fourth of the 1,200 MW power to be generated from its Tori station, to Bihar. BSEB has issued Essar Energy's subsidiary Essar Power Jharkhand Ltd (EPJL) a Letter of Intent to purchase the power over a 25 year period and it is expected that a binding PPA will be signed within two months. This follows a competitive bidding process. Under the terms of the Letter of Intent issued by BSEB, the 300 MW PPA will involve EPJL supplying power at a levelised tariff of Rs.3.28 per kWh or unit, net of transmission costs. Tori I, in Latehar district of Jharkhand, is a coal fired power project consisting of two generation units of 600 MW each. Tori II is an additional 600 MW project. The projects will source coal from the nearby Chakla and Ashok Karkata captive coal blocks, which have been secured for the power project, Essar said. EPJL has applied to the Government of India for a temporary coal linkage supply in the event of coal mining operations at the captive coal blocks not commencing in time for commissioning of the power station or to cover any shortfall in coal as production is ramped up at the mines.