Tata Power’s mining permit for the Indonesian coal mine PT Kaltim Prima Coal (KPC) in which it holds a 30% stake has been renewed for 10 years by the Indonesian government. The renewal of the permit will help Tata Power secure and hedge coal for its thermal power plants in India.
These are strategic assets to Tata Power which also help in hedging imported coal price exposure for its generating assets. The renewal will also help to ensure a regular supply of coal for its thermal power plants, Tata Power said in a statement.
PT KPC is based out of Indonesia and is held 30% by Tata Power through its wholly-owned subsidiary Bhira Investments Pte.
Praveer Sinha, CEO & MD, Tata Power said, “This will ensure a robust coal supply chain for our imported coal-based thermal plants resulting in the generation of reliable power to meet India’s energy demands.”
This IUPK is granted for an initial period of 10 years up until December 31, 2031, and can be extended by the provisions of the applicable regulations. This extension confers certainty of the mining operations and supply of coal, the company said.
