Tata Power's Indonesian mining permit renewed for 10 years; Stock climbs 2%

10 Mar 2022 , 10:36 AM

PT Kaltim Prima Coal (KPC) has been granted a Special Mining Business Permit (IUPK) by the Investment Minister / Head of the Indonesia Investment Coordinating Board Decree of the Investment Minister / Head of The Investment Coordinating Board, Indonesia. KPC is based out of Indonesia and is held 30% by Tata Power through its wholly-owned subsidiary Bhira Investments Pte Ltd.

These are strategic assets to Tata Power which also help in hedging imported coal price exposure for its generating assets. The renewal will also help to ensure a regular supply of coal for its thermal power plants.

Speaking on the renewal of the mining business permit, Dr. Praveer Sinha, CEO & MD, Tata Power said, “We are thankful to the Indonesian Government for trusting PT KPC through the renewal of our special mining business permit for coal. This will ensure a robust coal supply chain for our imported coal-based thermal plants resulting in the generation of reliable power to meet India’s energy demands.”

This IUPK is granted for an initial period of 10 (ten) years up until 31 December 2031 and can be extended by the provisions of the applicable regulations. This extension confers certainty of the mining operations and supply of coal.

At around 10:39 AM, Tata Power Company was trading at Rs234.45 apiece up by Rs5.2 or 2.27% on Sensex.