Tata Power today said it has inked a long term coal supply agreement with Indonesian firm -- PT Antang Gunung Meratus -- to secure fuel for its thermal power plants.
"Tata Power has signed a long term coal supply agreement with PT Antang Gunung Meratus, a 100 per cent subsidiary of the Indonesian company PT Baramulti Sukses Sarana," the company said in a statement.
Tata Power's subsidiary, Khopoli Investments Limited, has also entered into an agreement to take up to 26 per cent stake in PT Baramulti Sukses Sarana.
The group owns approximately 1 billion tonnes of coal resources in South and East Kalimantan in Indonesia, it said.
"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," Anil Sardana, Managing Director, Tata Power said.
Tata Power already has 30 per cent 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.
A consortium comprising Tata Power, Origin Energy and PT Supraco is developing a geothermal project in Indonesia with approximately 240 MW of generation capacity.
Tata Power recently synchronised the second 800 MW of 4,000 MW Mundra Ultra Mega Power Project (UMPP) in Gujarat. The company is importing coal from Indonesia for this project.
With this, the thermal power generation capacity of Tata Power stands at 5,247 MW and the generation through clean sources such as hydro, wind and solar at 852 MW.
Tata Power's total generation capacity now stands at 6,099 MW.