Tatas buy 30% in 2 coal cos from Indonesia's Bumi for $1.1bln

New Delhi, Mar 31 (UNI) Tata Power Company today said it will purchase 30 per cent equity in two major Indonesian thermal coal producers, PT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia, and a related trading company owned by PT Bumi Resources Tbk, for 1.1 billion dollars.

As part of the purchase, the company has signed an offtake agreement with KPC which entitles it to purchase about 10 million tonnes of coal per annum.

The company expects the purchase to support its upcoming 7,000 mw power projects, including the 4000 mw Mundra Ultra Mega Power Project (UMPP), to be developed over the next five years.

These projects will require nearly 21 million tonnes of imported coal, which the company intends to secure through a combination of purchasing equity stakes in coal mines as well as entering offtake contracts.

''This move not only secures our fuel requirements in light of the aggressive growth plans charted out by the company but also opens up opportunities for Tata Power to own and operate a range of world class, competitive and profitable electricity and energy businesses in India and overseas,'' company Managing Director Prasad R Menon said.

''The acquisition specifically addresses fuel requirements for Mundra UMPP, Trombay and the coastal power project in Maharashtra, and is complementary and supports the assumptions made in the bid for Mundra UMPP,'' he added.

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