Patel Engineering in advanced stages of acquiring Indonesian coal mine

Mumbai-based construction major Patel Engineering (PEL) is in advanced stages of talks for acquiring a mid-sized coal mine in Indonesia. The transaction size is pegged at Rs 100 crore, according to a media report.

The mine will be used for PEL’s proposed 1,200-mw power plant in Gujarat. The mine is owned by a local individual with a 100 million tonne coal reserve, the report added.

PEL’s thermal power plant is coming up in Bhavnagar in Gujarat at an investment of around Rs 5,000 crore. The project will be undertaken under a special purpose vehicle (SPV) and funded through a mix of debt and equity. The electricity generated will be sold to power traders, captive consumers and state governments, the report stated.