Essar Power Limited (EPL) has entered into binding agreements for the acquisition of a 100% interest in Navabharat Power Pvt Limited. EPL will initially acquire 76% of the existing equity with balance 24% being acquired upon completion of certain project milestones.
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.
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.
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.
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.
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