Tata transfers 75% equity in RI mines to subsidiary
Tuesday, February 12 2013 - 04:18 AM WIB
India based power utility giant Tata Power Co Ltd recently stated it will transfer at least 75% of its equity interests in the Indonesian coal companies to India based Coastal Gujarat Power Limited (CGPL), a wholly owned subsidiary currently in the process of implementing the 4000MW Ultra Mega Power Project at Mundra, India, in order to provide protection to CGPL and to support its cash flows.
"A valuation of the equity interests in the Indonesian coal companies has been carried out on the basis of certain assumptions, including legal interpretation that there is reasonable certainty that the mining leases would be extended without significant cost," the company said.
Tata management has concluded that a provision for impairment loss of Rs 850 crore for the nine months ended 31st December, 2012 (Rs 985 crore for the nine months ended 31St December, 2011) in CGPL is necessary on this account.
The amounts for the quarters ended 31st December, 2012, 30th September, 2012, 31st December, 2011 and for the year ended 31st March, 2012 were Rs 600 crore, Rs 250 crore, Rs 162 crore and Rs 1,800 crore respectively.
Editing by Er Audy Zandri