Essar puts $3bn worth of power projects on hold

Essar puts $3bn worth of power projects on hold

Piyush Pandey TNN

Mumbai: Ruias-owned Essar Energy has decided to put $3.1 billion worth of power projects, totalling 2,970 mega watts (MW), on hold as it struggles to get various approvals related to coal sourcing, environment and land acquisition. These projects include the second and third phases of Salaya project in Gujarat and first phase of Navabharat power project in Bihar, which were scheduled to be commissioned by 2014.

“As a result of regulatory delays, and to ensure efficient deployment of capital, Essar Energy has also decided to progress the construction of three of its later stage power projects only against certain milestones,” Naresh Nayyar, MD, Essar Energy, said.

Essar Oil shares dropped to Rs 61 in a weak Mumbai market on Monday after the company reported a net loss of Rs 2,841 crore for the full year, compared with a profit of Rs 1,241.5 crore a year ago.

Source:TOI 28.02.2012