India's Reliance Power to acquire S. Sumatra coal mine

Indian firm Reliance Power, the flagship power company of the Anil Dhirubhai Ambani group, has struck a deal to buy out a coal mine located in South Sumatra, The Economic Times of India reported Monday.

The company is expected to announce its acquisition in a day or two, the report said without naming sources.

The coal mine, which has resources of 2 billion tonnes, is spread over 100,000 acres, the report said. The greenfield coal mine will be the prime source of fuel for Reliance?s power project in Krishnapatnam in Andhra Pradesh. It is estimated that the Krishnapatnam ultra mega power project would require about 14 to 15 million tonnes of coal every year.

When contacted, Reliance officials declined to comment on the development, the report said.(*)