Mumbai: Coal & Oil, the sub-continent’s largest importer of steam coal, has signed a $1.5-billion deal with Indonesia’s Samtan Kideco for the purchase of 50 million tonnes of coal over the next 10 years.
The imported coal would be supplied to independent power plants, Coal and Oil CEO, Ahmed Buhari, said. “We are talking to them,” he said, refusing to name the prospective buyers.
The first shipment of coal would start coming from next year onwards, Buhari said.
India plans to add another 78,000 megawatt of power generation capacity by 2012. This has led to a spurt of activities in the power sector with a few players setting up power plants.
During the 10th Plan, India could add a meagre over 20,000 megawatt power against the target of 41,110 megawatt.
In March, Tata Power bought a 30 per cent equity stake in two Indonesian coal mines for $1.1 billion for its Mundra, Trombay and coastal projects in Maharashtra. Tata Power would be buying about 10 million tonnes of coal an year from Indonesian companies for its various projects.