GMR plans to buy coal mine in Indonesia

GMR plans to buy coal mine in Indonesia

New Delhi: GMR Group plans to buy a 100-150 million tonne capacity coal mine in Indonesia to feed 1,500 MW power generation capacity for 20 years.

The deal is likely to strike within the next three months.

“The company has plans to set up a 1,000 to 1,500 MW coal-fired thermal power plant on the western coast. The company has already done the land survey in Maharashtra and Gujarat," GMR Group chief financial officer Subba Rao Amarthaluru told reporters here on Friday.

He said, “The company would increase its domestic power generation capacity from 800 MW to 3,000 MW by 2013."

He also said that the company’s 1,050 MW coal-fired power plant in Orissa would be operational by March 2010.

He remained tight-lipped about the future investment plans of the firm and said amidst the global financial crisis, power sector is a potential sector where there is a scope of investment and higher returns considering the EPC cost coming down to around Rs4 crore per MW from the earlier Rs5-6 crore.