Srinagar, July 15: Essar Energy plc (LSE:ESSR), the India-focused integrated energy company, today announced that its subsidiary, Essar Power Limited (EPL), has entered into binding agreements for the acquisition of a 100 per cent interest in Navabharat Power Pvt Limited.  EPL will initially acquire 76 per cent of the existing equity with balance 24 per cent being acquired upon completion of certain project milestones, the company in an e-mail to Greater Kashmir said.  
 Navabharat Power is a 2,250 MW coal-fuelled power plant (Project) being set up in Dhenkanal district, Orissa, India.
 The Project is being implemented in two phases; the first phase of 1,050 MW and phase two of 1,200 MW at a total estimated capital cost of US$ 2 billion. The Project includes the allocation of the Rampia Coal block of 112 million metric tonnes and a 4.7 million metric tonnes per annum tapering coal linkage with Coal India Ltd.   Phase 1 of the Project already has in place a number of approvals including environment clearances. All other approvals are being progressed, including land acquisition.  Phase 1 is expected to achieve financial closure by end of CY2010. The advanced stage of the approval process is expected to save about 2 years in execution time compared to a greenfield investment.  
 Commenting on today’s agreement, Naresh Nayyar, CEO of Essar Energy, according to the statement, said, “Navabharat Power is a major part of our power phase II development projects. This acquisition is in line with the plans announced at the time of our IPO and will keep us on track to develop over 11,000 MW of power capacity by the end of 2014, thereby maintaining our leading position in the private sector power generation market in India.”

Lastupdate on : Thu, 15 Jul 2010 21:30:00 Mecca time
Lastupdate on : Thu, 15 Jul 2010 18:30:00 GMT
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