Tata Power, AGM sign coal supply deal

By Romel S. Gurky

Tata Power, India?s largest integrated power utility, reported that it has signed a long term coal supply agreement with PT Antang Gunung Meratus (AGM), a wholly subsidiary of the Indonesian company PT Baramulti Sukses Sarana (BSSR).

Tata, through its subsidiary Khopoli Investments Limited, has also entered into an agreement to take up to a 26 percent stake in BSSR as effort to secure coal supply.

AGM and BSSR own approximately 1 billion tons of coal resources in South and East Kalimantan.

Speaking on the development, Anil Sardana, Managing Director of Tata Power said "As a strategy to support our growth agenda, we are happy to have signed this coal supply agreement. It would support our upcoming power projects based on imported coal to be developed over the next 5 years."

Tata Power?s existing Indonesia presence includes 30 percent equity stakes in two major Indonesian thermal coal producers, PT Kaltim Prima Coal and PT Arutmin Indonesia, and a related trading company owned by PT Bumi Resources Tbk.

Editing by Adianto P. Simamora