India-based Tata Power has acquired a 26% stake in the Baramulti Suksessarana (BSSR) coal mine in Indonesia for an undisclosed amount to ensure fuel security for its growth prospects.
Tata Power has a prior long term coal supply agreement with Antang Gunung Meratus and also owns 30% equity stake in Kaltim Prima Coal (KPC) and Arutmin Indonesia (AI).
Under the Offtake agreements, Tata Power is entitled to purchase 10 million tonnes of coal every year.
Commenting on the transaction Tata Power managing director Anil Sardana remarked that fuel security is imperative to accelerate the company's growth.
"Thus, besides entering into coal off-take agreement, we have acquired 26% stake in this coal mine too as its reserves and outlook is very promising.
"This acquisition would aim to support our power generation projects in select geographies, to be developed over next few years," Sardana added.
Tata power also owns 30% equity stake in Kaltim Prima Coal and Arutmin Indonesia.