India’s largest private power producer, Tata Power, may build more projects based on imported coal once the Government formulates a firm policy on the sourcing of fuel from overseas mines.

The company is pursuing an opportunity to explore additional imported coal-based projects in the eastern coastal area, a Tata Power spokesperson said.

The company, which commissioned the 4,000 MW ultra mega power project at Mundra in Gujarat in March, is looking forward to clarity from the Government on issues pertaining to imported coal, she said.

The coal for the Mundra project is being sourced from Indonesia. The island nation tweaked its fuel policy in September to bring coal prices on a par with global rates.

The move has made the sourcing of fuel for imported coal-based projects in India an expensive proposition. The companies affected are demanding that they should be allowed to pass on the hike in fuel prices to consumers.

The other imported coal-based project being developed by Tata Power is the 1,600 MW Dherand project in Maharashtra.

All statutory clearances required for project implementation are in place and land acquisition is in progress, the company said.

Tata Power has also signed an agreement with the Maharashtra Government for the R&R package for farmers inDherand village, the company said, adding that the economic options for coal sourcing and logistics are under evaluation. A PPA (power purchase agreement) is yet to be finalised.

At present, the company generates about 3,120 MW of power from all the sources of energy.

Tata Power holds 30 per cent equity stake in major Indonesian thermal coal producers, PT Kaltim Prima Coal and PT Arutmin Indonesia, as well as related trading companies owned by PT Bumi Resources Tbk.

Tata Power is also developing domestic coal mines — Mandakini Coal Block in Orissa — jointly with Jindal Photo, and Monnet Ispat and Tubed Coal Block in Jharkhand with Hindalco.

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