Tata Power on Wednesday said PT Kaltim Prima Coal (KPC), in which it holds a 30 per cent stake, has been granted a special mining business permit for 10 years by the Indonesian government.
PT KPC is based out of Indonesia, and the power major holds its stake in the firm through its wholly-owned subsidiary Bhira Investments Pte Ltd, Tata Power said in a statement.
''PT KPC has been granted a Special Mining Business Permit (IUPK) by the Investment Minister/Head of the Indonesia Investment
Coordinating Board Decree of the Investment Minister/Head of The Investment Coordinating Board, Indonesia,'' it added.
These are strategic assets to Tata Power, which also help in hedging imported coal price exposure for its generating assets, the statement said.
The renewal will also help to ensure a regular supply of coal for its thermal power plants.
This IUPK, Tata Power said, has been granted for an initial period of 10 years till December 31, 2031, and can be extended by the provisions of the applicable regulations.
Praveer Sinha, CEO & MD, Tata Power, said, ''We are thankful to the Indonesian Government for...special mining business permit for coal. 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''.
Tata Power is one of India's largest integrated power companies and together with its subsidiaries and jointly controlled entities, has an installed capacity of 13,171 megawatts (MW).
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