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Tata to buy coal from Indonesian miner in FY23
COAL & MINING

Tata to buy coal from Indonesian miner in FY23

Tata Power Company Limited (TPCL) aims to buy coal worth around Rs 12,000 crore from their Indonesian miner this fiscal year, the deal will give TPCL the fuel without any “interruptions”.

Tata Power Company Limited (TPCL) owns a 30% stake in the mine and as the order would be a related-party transaction, it has sought the approval of shareholders in the forthcoming meeting post its audit committee cleared the agreement. The coal has been priced on an arm’s length basis and the transaction is valued by an independent valuer.

Coastal Gujarat Power, merged with Tata Power in April. In 2008, it signed an agreement with PT Kaltim Prima Coal (KPC) for long-term coal supply. The agreement comprises all amendments to source coal from KPC on the basis of price linked to the Indonesian government notified benchmark.

Tata Power in a notice to its shareholders said that the transactions between the two companies will help smoothen business operations for both the companies and ensure consistent flow of desired quality as well as quantity of goods and services without any interruptions which will lead to generation of revenue and business for both the companies for their business requirements.

The tenure of the coal sales agreement is valid till financial year 2032-33 (FY33) but the shareholders’ approval has been sought only for the ongoing financial year, it added.

Image Source

Also read: Govt to increase coal stock at power plants to 40 mt during monsoon

Tata Power Company Limited (TPCL) aims to buy coal worth around Rs 12,000 crore from their Indonesian miner this fiscal year, the deal will give TPCL the fuel without any “interruptions”. Tata Power Company Limited (TPCL) owns a 30% stake in the mine and as the order would be a related-party transaction, it has sought the approval of shareholders in the forthcoming meeting post its audit committee cleared the agreement. The coal has been priced on an arm’s length basis and the transaction is valued by an independent valuer. Coastal Gujarat Power, merged with Tata Power in April. In 2008, it signed an agreement with PT Kaltim Prima Coal (KPC) for long-term coal supply. The agreement comprises all amendments to source coal from KPC on the basis of price linked to the Indonesian government notified benchmark. Tata Power in a notice to its shareholders said that the transactions between the two companies will help smoothen business operations for both the companies and ensure consistent flow of desired quality as well as quantity of goods and services without any interruptions which will lead to generation of revenue and business for both the companies for their business requirements. The tenure of the coal sales agreement is valid till financial year 2032-33 (FY33) but the shareholders’ approval has been sought only for the ongoing financial year, it added. Image Source Also read: Govt to increase coal stock at power plants to 40 mt during monsoon

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