Tata Power buys stake in Indonesia coal miner
MUMBAI (Reuters) - Tata Power (TTPW.NS) has bought a 26 percent stake in Indonesian coal producer Baramulti Sukses Sarana (BSSR.JK), which owns about 1 billion tonnes of coal resources in the South East Asian country, as it seeks to secure fuel supplies.
The financial terms of the deal were not available.
Tata Power, which co-owns two mines in Indonesia along with Bumi Plc BUMIP.L, is already in a long-term coal supply agreement with a unit of Baramulti Sukses Sarana (BSSR.JK) .
"This acquisition would aim to support our power generation projects in select geographies, to be developed over the next few years," Anil Sardana, managing director at Tata Power, said in a statement.
Coal accounts for two-thirds of power production in India, which is struggling to meet the demands of a fast-growing economy and increasingly affluent population of around 1.2 billion people. (Reporting by Aradhana Aravindan)
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India could allow commercial coal mining by foreign companies if they set up units in the country, opening the door for global giants like Rio Tinto to access the world's fifth largest coal reserves, a source familiar with the matter said. Full Article