Financial Express reported that TATA Power one of the largest private sector power utilities in the country with interests in generation, transmission and distribution, is eyeing more feedstock from its Indonesian coal mines to fire its proposed thermal plants in India. TATA Power is planning to add 26,916 MW to generation capacity at its Haldia, Maithon and Mundra plants by 2013.
To feed its coal fired plants, TPC had bought 30% in Kaltim Prima Coal and PT Arutmin Indonesia besides a trading company owned by PT Bumi Resources Tbk for a consideration of USD 1.1 billion a couple of years back. TATA Power has the rights to ship 11.7 million tonne per annum coal for its 4,000 MW Mundra ultra mega power plant which is expected to be scaled up to 8,242 MW by 2013. Coal is the main feedstock for most of the UMPPs floated by the power utility.
Senior TPC officials told analysts that the company expects coal capacity at its Indonesian mines to rise from 60 million tonne per annum to 75 million tonne per annum to 100 million tonne per annum in the near future. In 2009, the Indonesian assets produced 62.7 million tonne with a realization of USD 62 per tonne. TPC expects sales volume and realization to remain firm from this asset, considering the recent uptick in coal prices.
The company recently won two captive coal blocks in India the Mandakini block in Orissa and the Tubed block in Jharkhand. The 7.5 million tonne per annum Mandakini block is a 3 way JV with Jindal Photo Films and Monet Ispat and Energy. All three partners have an equal share of 2.5 million tonne per annum each in its output.
The Tubed block was allotted to TATAs with Hindalco as its partner. Hindalco will get 60% of the output, while 40% will go to the TATAs.
The TATA group has lined up INR 23,600 crore for its power projects of which IN R 55,000 crore will come from internal accruals and another INR 18,000 crore as debt from domestic and foreign institutions. TPC has already tied up with IFC, ADB and K-Exim to fund the foreign currency part of the USD 3.2 billion debt of its USD 4.25 billion, 4,000 MW coal fired Mundra UMPP, which is slated to come up near Mundra Port in Gujarat.
(Sourced from www.financialexpress.com)
