PTBA, NTPC may form coal mine, power JV

Indian major power firm NTPC may form joint venture with state coal mining firm PT.Tambang Batubara Bukit Asam (PTBA) to develop coal mine and power plant operations in Indonesia, an Indian media reported on Wednesday.

The Economic times reported that a delegation from NTPC is expected to visit Indonesia soon to hold final discussions with PTBA for a possible joint venture.

Sources said that NTPC is interested in setting up two JV operations with PTBA ? one for providing engineering support for developing a power plant and another for developing a coal mine that would allow the NTPC to bring a portion of the production for use in its power plants. PTBA has recently won tender for constructing a power plant and has indicated that it would grow this business.

It is expected that the coal deal with PTBA would mainly be used by NTPC to feed its proposed 500 mw power plant in Sri Lanka based on imported coal. A portion of the coal may also be brought back to India, the report said. (*)