ICICI-led group to sell Essar Power arm to recover dues
An ICICI Bank-led consortium, which includes Rural Electrification Corp, Power Finance Corp, Punjab National Bank and IDFC, is looking to sell Essar Power MP, to recover Rs 6,600 crore of dues, sources said. Essar Power MP, which owns a partly-operational 1,200 MW coal-based power plant in Madhya Pradesh, owes over Rs 1,600 crore to ICICI Bank, and over Rs 1,300 crore each to PFC and REC, while the rest was disbursed by PNB and IDFC, sources said.The Comptroller and Auditor General of India had in a report criticised PFC and REC for granting additional loans to the project, despite defaults and losses from other group companies.Essar Power MP is a subsidiary of Essar Power and was incorporated in 2005 for the purpose to set up a power plant.....