Essar Energy said it plans to acquire a 100% interest in India’s Navabharat Power after purchasing 76% of the company.
Navabharat Power, a 2,250MW coal-fuelled power plant, is being built in Orissa, India, in two phases.
The first phase, covering 1,050MW, and phase two, which brings it to 1,200MW, require capital investment of up to $2bn.
The project includes the allocation of the Rampia Coal block of 112 million metric tons and a 4.7 million metric tons per annum tapering coal linkage with Coal India.
Essar Energy CEO Naresh Nayyar said Essar will look to acquire the entire project once certain project milestones are met and before the project reaches completion in 2014.
“This acquisition is in line with the plans announced at the time of our IPO and will keep us on track to develop over 11,000MW of power capacity by the end of 2014, thereby maintaining our leading position in the private sector power generation market in India,” Nayyar said.