The company was awarded the project by the government of Vietnam based on pre-feasibility studies conducted earlier this year, Tata Power said in a media statement. It did not, however, disclose the financial terms of the deal. In accordance with the MoU, Tata Power will carry out feasibility studies for developing this power project on a build, own and transfer basis.
The Long Phu 2 Power Project is Tata Powers first coal-based project outside India.The company, part of the salt-to-steel Tata Group, has been looking to expand its operations overseas with projects in South Africa, Georgia and Southeast Asia as it tries to combat coal shortages and populist tariff regimes eating into its margins amid stuttering economic growth at home.
Other international projects under implementation include the companys recently signed an agreement with Clean Energy Invest AS (Clean Energy) and IFC InfraVentures(IFC) for developing a 400 MW hydro project in Georgia for sale of power primarily to Turkey. Tata Power is also currently implementing a 126 MW Dagachhu Hydro Project in Bhutan.