Mumbai: Private sector power utility Tata Power Company Ltd is looking at expanding its reach by building power plants in Southeast Asia. The company is also eyeing mines in Indonesia despite high coal prices and increasing coast of acquisitions.
Tata Power is raising domestic capacity from the current 2,300 megawatt to 10,000 megawatts by 2013, with planned investments of over $6 billion, reports quoting its managing director Prasad Menon said.
TATA Power had plans to import 12 million tonnes of coal from countries, including Indonesia, for feeding its proposed UMPP at Mundra in Gujarat. The plant has a capacity to generate 4,000 MW of electricity.
''We are evaluating options on how to mitigate freight costs. We have set up a subsidiary in Singapore. We may also go in for buying ships ourselves,'' said TATA Power Trading Co managing director Amulya Charan.
Tata Power had last year made an unsuccessful bid for Singapore's Tuas Power, for which state-investor Temasek Holdings had shortlisted Reliance Energy Ltd from among nine firms.
Rising coal prices, which have risen by as much as 200 per cent, are making mine acquisitions expensive for companies, but Tata Power is on the hunt, Menon was quoted as saying.
Tata Power, which supplies electricity to the country's financial capital Mumbai, and operates a distribution arm in New Delhi, had earlier sought to acquire coal mines in South Africa and Mozambique in Africa.
The company may also enter coal shipping business as it seeks to import more coal for its coastal power plants.