Infrastructure major Gayatri Projects is looking beyond Indian shores to secure coal supplies for its upcoming 1,320-mw thermal power project at Krishnapatnam. It has entered into an agreement with PT Bayan Resources, an Indonesian coal producer, to realise this dream. The company sees this deal as a major milestone towards commissioning the project in 2014.
The project is being set up with an outlay of Rs 6,869 crore and funded through a debt component of Rs 5,151 crore and Rs 1,718 crore in equity.
Nearly 70% of the total coal required would be procured domestically and the remainder 30% from overseas. In absolute terms, the requirement for the project has been pegged at about 8 million tones of coal per annum. While Coal India would be supplying about 5.6 million tones, the company would import about 2.4 million tones.
“We have signed with Bayan for one million tones of supplies per annum. We will be signing up with other suppliers for the balance. We also have the option of buying coal from the spot market, if required. But our effort is to secure coal supplies both from the domestic and overseas sources,” T V Sandeep Reddy, Gayatri MD, told DNA.
Gayatri’s subsidiary Thermal Powertech Corporation (India) is in the lead setting up the project. The agreement with Bayan is for 10 years.
The Indonesian stock exchange-listed Bayan, which is the sixth largest Indonesian thermal coal producer and exporter, owns and operates Balikpaapan coal terminal, one of the largest in East Kalimanthan, with a handling thoroughput capacity of 15 million tonnes a year.
Gayatri’s agreement with Bayan is for 10 years and the supplies are expected to begin from 2014 when the power plant is scheduled to start production. “We are interested in looking at coal assets overseas. But it is not immediate. We are first interested in securing coal supplies to the project. Investing in a coal asset is long term and it does not secure immediate supplies,” Reddy said.