Tata Power-backed subsidiary PT Kaltim Prima Coal (KPC) on Wednesday bags a special mining business permit for 10 years from the Indonesian government. The mining lease will aid Tata Power in ensuring a regular supply of coal for its thermal power plants.
Tata Power holds a 30% stake in KPC through wholly-owned subsidiary Bhira Investments Pte Ltd. KPC is based in Indonesia.
In its regulatory filing, Tata Group's power flagship said, "PT Kaltim Prima Coal (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."
On the mining lease, Dr Praveer Sinha, CEO & MD, Tata Power said, "We are thankful to the Indonesian Government for trusting PT KPC through the renewal of our 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."
The permit is granted for an initial period of 10 years, ending December 31, 2031, however, can be extended by the provisions of the applicable regulations. This extension confers certainty of the mining operations and supply of coal.
For Tata Power, these are strategic assets that will support in hedging imported coal price exposure for its generating assets. Further, the renewal will help to ensure a regular supply of coal for its thermal power plants.
On BSE, Tata Power stock settled at Rs229.25 apiece, up by 0.99%. The stock has touched an intraday high and low of Rs231.10 apiece and Rs226.20 apiece respectively.
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