Tata Power reportedly is negotiating with MEC co-promoter Ras-al-Khaimah Investment Authority to acquire 15% stake in MEC Coal. The Tata Group subsidiary is keen on augmenting its foreign coal assets to reduce power generation costs at its plants in India, where fuel shortage often leads to outages.
MEC Coal is developing coal concessions in Indonesia, along with an integrated heavyhaul rail transportation system and ship-loading jetty in the East Kalimantan province. The coal railway project is estimated to cost about $1 billion.
Tata Power Company is India's largest private sector power utility with an installed generation capacity of over 2785 MW. The company has emerged as a pioneer in the Indian power sector, with a track record of performance, customer care and sustained growth.
