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PTC eyes coal mines in Indonesia

business Updated: Jun 22, 2008 21:14 IST
PTC eyes coal mines in Indonesia

Energy trading major PTC India is planning to buy coalmines in mineral rich Indonesia, a move aimed to enable domestic power companies to meet rising needs of the key input.

PTC, formerly known as Power Trading Corporation of India Ltd, is eyeing up to 15 million tons coal per annum from the overseas mines that it plans to acquire through a equal partnership joint venture with a power generation giant.

"The proposed venture would be headquartered in Singapore. It will be a holding company for raising both debt and equity to buy stake in coal assets in Indonesia," a senior PTC official, who did not wish to be identified, said.

India's power and steel companies have been hamstrung by a persistent rise in prices of coking coal.

Earlier this month, a five-member delegation headed by minister of state for steel Jitin Prasada visited Australia to explore access to coal mines there.

Public sector steel major SAIL, which imports a bulk of its 16-17 million tonnes of coal requirement, is exploring the possibility of setting up a joint venture with Bharat Coking Coal Limited (BCCL) specifically for the rich Kapuria block in Jharkhand.

The proposed venture will be a holding company that will invest in coal projects and in turn sell the extracted coal from the overseas assets to PTC India.

PTC, in turn, would use the coal mainly for power projects where the company has entered into power off-take agreements, while retaining the option of selling the balance.

"PTC will partner with an Indian power generating company. It will supply coal, both to the generating company as well as other interested coal based power generating companies in the country," the official said.