Essar Power has distanced itself from the coal mine allotment scandal and said that the acquisition of Navabharat Power Pvt. Ltd. (NPPL) for Rs.230 crore was carried out in a transparent manner with independent financial and legal advisors assisting in the acquisition process.

Categorically denying allegations that Navabharat was a ‘front’ company of Essar, the company said it had no dealings with either of the erstwhile promoters, P. Trivikram Prasad and Y. Harish Chandra Prasad, until this transaction.

“The acquisition of Navabharat Power was in line with the company’s publicly stated strategy of growing its power generation business through organic and inorganic means, and was fully disclosed to all relevant statutory authorities,” Essar Power said in a statement.

“Following the acquisition, Essar Power has invested more than Rs.500 crore in developing the project and has also achieved financial closure, with ICICI Bank having underwritten debt financing of more than Rs.3,720 crore. The project is now awaiting certain government approvals,” it added.

‘Exit from NPPL transparent’

Our Hyderabad correspondent writes:

Nava Bharat Ventures has clarified that the sale of stake held by the Nava Bharat Group in NPPL was done in a transparent and diligent manner making full disclosures to the stock exchanges. The sale was done at the same price “without any undue advantage”. The equity divestment was due to exigencies beyond the control of the Nava Bharat Group and was in the interest of shareholders.

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