Tata may set up power plants in Indonesia

After having signed agreements to pick up coal mine stakes in Indonesia, Tata Power is now planning to set up power plants in that country, India's DNA reported on Friday.

Ratan Tata, Tata Group chairman, said: ?We are apparently looking at power projects in Indonesia and there is no conflict of interest in acquisition of coal and exhausting a part of it in the country itself,? he said.

Tata Power had signed an agreement on March 30, 2007, for 30% equity stake in Indonesian thermal coal producers PT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia and related coal trading companies owned by PT Bumi Resources Tbk.

The coal offtake from Indonesia may be utilised for the company?s 4,000 MW ultra mega power project (UMPP) coming up at Mundra in Gujarat.

The company will also utilise coal for its 250 MW coal-based plant at Trombay and 2,400 MW mega power project in Shahpur, coastal Maharashtra, Tata said.

Meanwhile, P R Menon, managing director, Tata Power, said the company plans to have a total power generating capacity of 10,000 MW by 2012.(*)