India?s GMR eyeing S. Sumatra mine-mouth power plants

Indian firm GMR Infrastructure is bidding for two mine-mouth coal-fired power plants in South Sumatra to add value to its coal mine that is scheduled to start production in the second half of this year.

Sanjay Jalali, VP Project Development ASEAN told reporters on a sideline of Indonesian Infrastructure Conference that the company will submit bid in June for two 2x150MW power plants.

Sanjay said both of the projects will start production around 2015.

He said that if the company won the projects, coal would be sources from its coal mine PT Bara Sentosa Lestari (BSL), which it acquired in 2009. BSL will also supply coal to GMR?s coal-fired power plant in India.

Sanjay said that GMR is currently looking for capable local partners for both projects.

He added that both of the projects would be a challenge in terms of project financing as government would not provide any guarantee for the projects. (alex)