Essar Power to invest $2 billion in coal-fired power project in India
14 July 2010Essar Power, a subsidiary of India-based conglomerate Essar Energy, is planning to invest $2 billion to develop a 2,250MW coal-fired power project in Orissa, India.
This will be subsequent to the company’s acquisition of Navabharat Power, which was formed to build the power project. Essar Power will initially buy 76% in Navabharat Power that recently got all approvals to build the thermal power project in Dhenkanal district along with the coal mine linkages. The acquisition value of Navabharat Power would be around INR300 million ($6.4 million). The acquisition is expected to fuel the company’s chances of reaching over 11,000MW of power capacity by 2014. The Dhenkanal power project is being implemented in two phases. The first phase involves development of 1,050MW and1,200MW of power in the second. It also includes development of a coal mine with a reserve of 112 million ton. The first phase of the Navabharat Power project has already received most of the necessary approvals, including environment clearances, and is expected to achieve financial closure by the end of 2010.
