Tata Power buys 26% in Indonesian coal miner
- Breaking: Navy officer dies on board INS Kolkata off Mumbai
- Subrata Roy to remain in Tihar, Supreme Court calls Sahara's proposal "dishonourable"
- Arvind Kejriwal stopped on way to meet Narendra Modi
- Modi's next round of Chai pe charcha doesn't have police permission yet
- SC issues notice to Centre on Kiran Reddy's PIL against creation of Telangana
Tata Power on Thursday said it has acquired a 26 per cent stake in Indonesian coal miner PT Baramulti Suksessarana Tbk (BSSR), aiming to bolster supplies amid a severe domestic fuel shortage. The company did not disclose the terms of the deal.
At Thursday's closing price, Tata Power's stake in Baramulti, which started trading on Wednesday in Jakarta, is valued at 1.32 trillion rupiah ($137 million).
BSSR, along with its unit PT Antang Gunung Meratus (AGM), owns about 1 billion tonne of coal resources in Indonesia. The company had earlier signed a long-term coal supply deal with AGM. Tata Power also won the option to buy 26 per cent in Kalimantan-based miner BSSR through its unit Khopoli Investments while signing the coal deal in July. Tata Power has been scouting for coal mines, particularly in Indonesia and South Africa, as state-run Coal India struggles to increase output. "We recognise fuel security is key to support Tata Power's growth agenda. This acquisition would aim to support our projects in select geographies, to be developed over next few years," managing director of Tata Power, Anil Sardana, said.
Meanwhile, Ratan Tata has stepped down as the chairman of Tata Power. Cyrus Mistry will take over as the new chairman.