By BS Reporter
Tata Power, India's largest private power producer, said it had acquired a 26 per cent stake in Indonesian miner PT Baramulti Sukses Sarana Tbk (BSSR). The acquisition, done through Khopoli Investments Ltd, a wholly-owned subsidiary of Tata Power, would give the power generator access to a part of the one billion tonne (bt) coal reserves held by BSSR and its subsidiary PT Antang Gunung Meratus (AGM).
Tata Power had in July this year signed a long-term coal supply agreement with AGM. The company had also entered into a separate agreement with BSSR then which gave Khopoli Investments Ltd an option to take up a 26 per cent stake in BSSR, the Kalimantan-based miner.
"We recognise fuel security as a key to support growth agenda. Thus, besides entering into coal offtake agreement, we have acquired 26 per cent stake in this coal mine as its reserves and outlook is very promising. This acquisition would aim to support our power generation projects in select geographies, to be developed over next few years," Tata Power Managing Director Anil Sardana said.
Currently, Tata Power holds 30 per cent equity stake in PT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia (AI) in Indonesia. As part of the deal, Tata Power has also signed an offtake agreement to purchase 10 million tonnes (mt) coal every year.
Additionally, a consortium comprising Tata Power, Origin Energy and PT Supraco is developing a geothermal project in Indonesia with 240 Megawatt (Mw) generation capacity.
Tata Power has a current power generation capacity of 6,900 Mw. Its flagship project - imported coal-based Mundra Ultra Mega Power Project (UMPP) in Gujarat - is currently facing problems owing to a recent change in coal export regulations by the Indonesian government which pushed up the cost of generation. The company is currently seeking a hike in tariff from the Central Electricity Regulatory Commission to ensure the project remains viable.