"This will allow Essar Power to invest in the permitted downstream activities, including investment in power sector and coal mining for captive consumption for power projects", a government release added.
The proposal, which was already cleared by the Foreign Investment Promotion Board, needed CCEA approval as per Press Note 7 (1999 series) for investments exceeding Rs 600 crore. Essar Power has an installed capacity of 1,200 Mw and plans to generate 6,000 Mw by 2012 including power plants of 1,200 Mw each in Madhya Pradesh, Gujarat and Jharkhand. The company at present runs a 515 Mw natural gas fired combined cycle power project at Hazira in Gujarat and has commissioned a 32 Mw coal based captive power project at Vishakapatnam.
The CCEA also gave ex-post-facto approval for redemption of 7 per cent non-cumulative preference shares of NBCC Ltd. It also approved the setting up a wholly owned holding company with a foreign equity of up to 100 per cent amounting to $ 250 million by Rakeen Development (Rakeen), PJSc, Al Jazeera Al Hamra and wholly owned subsidiary Rakeen Private Ltd, Mauritius to undertake downstream investments in India companies engaged in infrastructure.
