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Thursday, April 24, 2008

Reliance Power to sell excess coal to other domestic firms

Reliance Power (RPower) is mulling over selling the additional coal
left after captive usage to other companies in India, reports Economic
Times.

RPower would look at leveraging its large coal reserves and the
planned foray into shipping business for captive purposes by selling
the surplus coal to other consumers in the country.

Currently, it has stake in some Indonesian coal blocks with reserves
of about two billion tons, while it is looking to further expand this
portfolio through acquisition of further blocks in other coal-rich
countries like Mozambique, South Africa and Australia.

As per the requirements for its current plans, RPower (Q, N,C,F)*
could be left with significant amount of additional coal after its
captive usage for the coal-based projects.

RPower has bagged two ultra mega power projects of 4,000 mw each at
Sasan in Madhya Pradesh and Krishnapatnam in Andhra Pradesh. It has
already initiated a process for purchasing large-capacity Capsize
vessels worth about USD 1 billion from some major shipping yards in
China, Korea and Japan. After getting these ships and with abundant
coal reserves, it would prove to be a prudent strategy to sell the
excess quantity to other parties.


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