Prasad Menon, managing director, Tata Power Company has indicated that the power utility may buy vessels or pick up stake in shipping companies to transport coal from Indonesia. The company has appointed an advisor to look at various options including long-term charters.While acquiring vessels or taking stake in a shipping company is expected to cut transportation cost and ensure capacity for Tata Power, analysts feel that the company may have to pay a huge premium considering high freight prices and tanker demand.Tata Power had, yesterday, announced the completion of the acquisition of 30% stake in Indonesian thermal coal producers PT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia (Arutmin) as well as related trading companies owned by PT Bumi Resources Tbk (Bumi).
