Tata Power to bid for projects that have coal linkages

The Tata group-promoted power generation major Tata Power Company (TPC) has decided to bid for power projects that have coal linkages in future, in a bid to cut down import costs. Meanwhile, the company is on the lookout for coal mines overseas to ensure supplies for its upcoming power projects in the country.

TPC is exploring mining opportunities in Australia, Mozambique and Indonesia, which would ensure supplies of two to three million tonnes of coal. The company already has 30% ownership in an Indonesian block, which is able to meet 50% of its coal requirement.

Tata Power has an installed capacity of 2,768 MW and is targeting generating capacity of 12,000 MW by 2014. This targeted capacity includes a clutch of projects, which are at various stages of implementation and also Mundra UMPP.

The company is executing the 4,000 MW Mundra ultra mega power project (UMPP) in Gujarat. Of this, three units of 800 MW each are expected to become operational by March 2012, according to the company’s executive director S Ramakrishnan.

Among other projects, TPC is developing a 1,600 MW coal-based project at Dherand in Maharashtra. The project would be fed on imported coal.

The company, along with Damodar Valley Corporation (DVC), is executing a 1,050 MW thermal power project in Jharkhand. TPC holds 74% equity in the project while the balance 26% is held by DVC.

Tata Power and Hindalco, in a 60:40 joint venture, are developing a 500 MW thermal project in Jharkhand. The state government has allotted 500 million tonne capacity tubed coal mine for the project.

The company is also implementing two 120 captive MW power projects in Jamshedpur for powering Tata Steel’s manufacturing plant.