NTPC eyes two Indonesian coal mines to augment supplies
30 Aug 2010
India's largest power utility, National Thermal Power Corporation (NTPC) is planning to buy stakes in two Indonesian coal mines, chairman and managing director R S Sharma told reporters today in New Delhi.
"We are looking at picking up stake in two coal mines in Indonesia in East Kalimanthan and Sumatra with coal resources of about 1.8 billion metric tons in the current financial year, to secure coal supplies for our power plants,'' said Sharma.
Without disclosing the target mines, NTPC said it plans to finalise the deal in the current financial year and latest by March 2011.
According to Crisil Ltd, a unit of Standard & Poor's, demand for coal in India could be 1.4 billion metric tons by 2020, which is largely used by the power generating and steel industry.
There are a total of 86 upcoming coal-fired power projects currently in India, of which 29 are near completion, 29 are under construction and another 28 are at the development stage, awaiting government approvals.
With India's demand of coal outstripping supply, India is expected to import 35 million tons of coal in the year starting 1 April, which is set to rise to 81 million tons in 2011-12.