Tata Power considers coal supply from sources outside Indonesia

Petromindo|Boim

India?s private power producer Tata Power is considering to import competitive coal from other countries than Indonesia to help contain the onslaught of ?under-recovery? at its 4,000 MW coal-based ultra mega power plant at Mundra, in western India's Gujarat state.

Tata Power said in a filing with the Bombay Stock Exchange on Tuesday that the plan for the coal import comes after India?s Supreme Court set aside a previous favorable order of the Appellate Tribunal of Electricity, which had allowed compensatory tariff on account of force majeure conditions in Indonesia

?The company will continue to pursue all alternatives options at Coastal Gujarat Power Limited (CGPL), including sourcing of competitive coal from other relevant geographies as also use low grade and blended coal options to contain the onslaught of under recovery at Mundra UMPP,? Tata Power said in the statement. CGPL is Tata?s subsidiary which runs the Mundra coal-fired power plant, which is fueled by imported coal.

India?s power firms such as Tata Power, Adani Power and Reliance Power had acquired coal mines in Indonesia to supply coal for their power plants in India.

Editing by Reiner Simanjuntak