REL hunts for miner in Indonesia

Mumbai, May 28 | Updated: May 29 2007, 05:30am hrs
After Tata Power Company (TPC), its Anil Ambani controlled Reliance Energy Ltds (REL) turn to weigh options for the acquisition of coal mining company in Indonesia.

Currently, RELs team is in Indonesia to explore various options including acquisition of the existing coal mining company, acquisition of some equity in the mining company or formation of a joint venture (JV). It has launched activity for the acquisition of mining company as it would need 9 to 10 million tonne of coal annually for the proposed 2,400 mw imported coal based project in Shahapur in Raigad distrcit in Maharashtra. REL sources confirmed this development but declined to divulge further details. The company is expected to set up 600 mw or 660 mw unit each. However, sources in the know told FE, REL has indicated to the Maharashtra government that it will take at least three to four months to materialise something concrete on this front. The company sees that Indonesian coal is high quality coal and it will be a viable proposition as the coal will be transported from the ship near the project site. REL, which had earlier planned to set up 4,000-mw gas based project at Shahapur, had recently revised its plan after the state government's intervention.

Now, the company will develop a 2,400 mw project with an investment of around Rs 9,600 crore and it will set up 1,600 mw gas based project some where else after the government allots the company the required land.

State government sources said that the company has been asked to commission the first unit in the middle of 2009.