Subsidiary of Essar Energy, Essar Power has said that it is looking forward to buy Navabharat Power Pvt. Ltd in Orissa.

The total capacity of the power company is 2250 MW and Essar has said that it will first buy 74 per cent stake and the rest will follow after some of Navbharat's key projects are over.

Navabharat was formed when Malaxmi Energy Ventures and Nava Bharat Ventures Ltd. Came together and formed a joint venture. It informed the exchanges that Nava bhrata has already sold 52 per cent of its stake in Navabharat Power. Malaxmi has sold its entire stake.

It is more important since it has got all major clearances with it and also has coal-linkages. The size of project in Orissa is going to be $2 billion and will be implemented in two phases.

First would be of 1,050 MW and the second one will be of 1,200 MW.

Said Naresh Nayyar, CEO of Essar Energy, that Navabharat Power is one of the main part of its power phase II development projects.

The acquisition, he added, is more important since it comes before the IPO and is also a part of its 11,000 MW capacity buildup by 2014.