17 Mar, 2011, 11.57AM IST
By Gargi Pareek,ET
MUMBAI: Monnet Ispat is close to acquiring a coal mine in Sumatra, Indonesia. Acquisition of the coal mine may be completed by this week, sources close to the development confirmed. The announcement of the coal mine acquisition may come in early next week.
Coal from the Indonesian mine will be utilized for Monnet Ispat's merchant power plant of about 2000 MW. The company is already setting up a 1050 MW plant in Orissa for which the coal will be sourced from its domestic mines. The company forayed into merchant power business through its subsidiary Monnet Power.
As coal prices rise sharply and short supply of coal gets deeper in India , power and steel companies are scouting for coal assets abroad. Monnet Ispat has been planning a coal acquisition for a long time to keep a control on their coal costs in future.
In one of the recent interviews, Sandeep Jajodia Exec.VC and MD, Monnet Ispat said "The challenge will be for our next project as we are planning a project on imported coal. We will make sure that the coal comes out of our own mine, either from Indonesia or elsewhere in the world."
Coal from the Indonesian mine will be utilized for Monnet Ispat's merchant power plant of about 2000 MW. The company is already setting up a 1050 MW plant in Orissa for which the coal will be sourced from its domestic mines. The company forayed into merchant power business through its subsidiary Monnet Power.
As coal prices rise sharply and short supply of coal gets deeper in India , power and steel companies are scouting for coal assets abroad. Monnet Ispat has been planning a coal acquisition for a long time to keep a control on their coal costs in future.
In one of the recent interviews, Sandeep Jajodia Exec.VC and MD, Monnet Ispat said "The challenge will be for our next project as we are planning a project on imported coal. We will make sure that the coal comes out of our own mine, either from Indonesia or elsewhere in the world."
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