Tata Power Has No Plan to Sell Stake in Indonesia Bumi Mines

By Archana Chaudhary

March 16 (Bloomberg) -- Tata Power Co., India’s biggest electricity generator outside state control, said it has “no intention” to sell its stake in two Indonesian coal mines owned by PT Bumi Resources, Asia’s third-biggest coal producer.

“We strongly deny the rumors regarding our stakes in Indonesian Coal mines - KPC and Arutmin,” Tata Power said in response to e-mailed questions from Bloomberg News today. “This acquisition is a key part of the company’s growth strategy and we have no intention to sell our stake in the coal mines to Bumi Resources or any other party.”

Tata Power agreed to pay $1.3 billion in March 2007 to buy a 30 percent stake in coal mining units PT Kaltim Prima Coal and PT Arutmin Indonesia owned by Bumi. The agreement entitled the company to purchase 10 million metric tons of coal, securing supplies of the fuel for its Indian power plants.

Tata Power said it expects to meet the loan repayment requirements on schedule.

To contact the reporter on this story: Archana Chaudhary in Mumbai at achaudhary2@bloomberg.net.