Tata Power yet to conclude sale of Arutmin

India?s Tata Power said that it has yet to complete a deal signed last year to sell its 30 percent stake in Indonesian coal miner PT Arutmin Indonesia.

?No, we haven't. The lenders are not giving their permission for the stake change. The bankers are asking for guarantees and collaterals. The bankers are being difficult as the coal prices have fallen. The deal is taking longer than we had envisaged,? Tata Power Chief Executive Anil Sardana told India?s Economic Times daily.

He said that the buyers have not asked for renegotiating the selling price.

Tata Power signed early last year an agreement to sell its 30 percent stake in Arutmin, which operates coal concession in South Kalimantan, and associated companies in coal trading and infrastructure to a Bakrie Group entity for aggregate consideration of approximately US$500 million, subject to certain closing adjustments.

Tata Power said that it will use the proceeds from the sale to help deal with its business challenges in India including reducing debt load.

Tata Power has said that it will continue to hold its equity stake in another coal miner PT Kaltim Prima Coal (KPC), which owns one of the largest thermal coal producing mines in the world. KPC will also continue to be a part of the supply chain for Tata Power Group's coal off-take requirements. (*)