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Tata Power to Acquire 15% in MEC Coal

  • Tata Power Company Limited is planning to acquire 15% stake in MEC Coal.According to ET, MEC Coal is developing coal concessions in Indonesia, along with an integrated heavyhaul rail transportation system and ship-loading jetty in the East Kalimantan province. The coal railway project is estimated to cost about $1 bn.According to Anil Sardana – MD of Tata Power, the company was keen on building power plants in Indonesia and Africa to grow its business, which has been capped by a shortage of coal in the country. The company currently has a capacity of 3,797 mw, and is aiming to raise it to 25,000 mw by 2015.

  • MEC Coal is a subsidiary of Dubai-based MEC holdings and the Ras Al-Khaimah Investment Authority, while MEC holdings is a subsidiary of Dubai-based Trimex Group, which invests in the energy and mineral sectors. Tata Power has 30% stake in two Indonesian Coal companies - PT Kaltim Prima Coal and PT Arutmin Indonesia.Recently, Tata power was in news for acquiring BP Alternative Energy Holdings' 51% stake and preference shares in their JV - Tata BP Solar India.

  • Post acquisition, Tata Power would own 100% in the solar power company.In December 2011, Tata Power has secured R365Cr debt funding for its 25-megawatt solar photovoltaic power project in Gujarat.Tata Power tied up loans for Mithapur project in Gujarat, through a consortium consisting of State Bank of India and Export Import Bank of India. The company has earlier executed a 3mw solar photo-voltaic plant at Mulshi in Maharashtra and a solar power plant of 100 kw at Lonavla.

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