Tata Power acquires stake in Indonesian coal firm
In a move to augment its fuel security, Tata Power has acquired 26 percent stake in Indonesian company Baramulti Sukses Sarana Tbk (BSSR).
A company release here Thursday said Tata Power made the acquisition "through its 100 percent subsidiary Khopoli Investments Limited, and is now a 26 percent shareholder in BSSR".
Antang Gunung Meratus (AGM), a 100 percent subsidiary of BSSR, and BSSR together own approximately one billion tonnes of coal resources in South and East Kalimantan in Indonesia.
Tata Power already has a long-term coal supply agreement with AGM.
"This acquisition would aim to support our power generation projects in select geographies, to be developed over next few years," said Anil Sardana, managing director, Tata Power.
The company's existing presence in Indonesia includes 30 percent equity stake in Kaltim Prima Coal and Arutmin Indonesia.