Bumi Resources is Indonesia's largest coal producer and exporter with reserves of 52 million tonnes, enough to generate 1,000 MW power for 12 to 13 years. It has put a reserve price of $1 billion for around 30 per cent stake.
Both REL and TPC have expressed interest in taking equity stake in the Indonesian firm, industry sources said.
REL officials declined to comment. "We have been saying that we are looking at coal mines in Indonesia, South Africa and Australia. We cannot comment on any specifics," said a Tata Power spokesperson.
At present, REL has a 500 MW coal-based power
plant at Dahanu in Maharashtra. The company is also setting up thermal projects in Uttar Pradesh and plans to set up a project in Orissa. It was also the second lowest bidder for both the Sasan and Mundra ultra mega power projects.
Tata Power, which won the 4,000 MW Mundra project, is exploring the possibility of buying coal mines overseas. The company would need to import around 12 million tonnes of coal annually starting 2012 for the project.
The company also plant to build a 2,000 MW coal-based power plant along the coast of Maharashtra.
Acquiring coal mines would help the companies in assuring fuel supplies. Moreover, Indonesian coal has lower ash content and higher calorific value than Indian coal, resulting in higher power generation with less fuel.
