Essar Energy said the second unit of the 2 X 600 MW Salaya I power plant in Gujarat has begun commercial operations.
The first unit commenced operations in April this year.
Most of the power produced will be sold to the Gujarat state electricity utility, GUVNL, under a long-term contract.
Essar said two more projects, the 1,200-MW Mahan I and 510-MW Vadinar P2 projects, were also scheduled for commissioning this year.