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| Coal & Oil Group makes Rs 1,470cr buyout plans |
| T E Narasimhan / Chennai/ Coimbatore Jul 10, 2009, 00:17 IST |
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To acquire six new ships, coal mine in Indonesia
The Coal & Oil Group is planning to invest $300 million (around Rs 1,470 crore) in buying new ships and acquiring coal mines. The company is planning to invest the money to support its customers' coal requirements in India and to meet its captive requirement for the upcoming Rs 4,300-crore power project at Tuticorin.
Speaking to Business Standard here, Ahmed A R Buhari, founder and chief executive officer of Coal & Oil Group, said the company was looking at acquiring six panamax vessels with an investment of $200 million. These ships will be deployed to carry coal from various mines in Indonesia and South Africa to India.
The company is also planning to acquire coal mines and is negotiating with mine owners in Indonesia. “Currently, we are buying coal from the mine owners to cater to our Indian customers. Since the demand is increasing, we have decided to acquire coal mines at an outlay of $100 million,” he said.
Coal & Oil Group is currently supplying around six million tonne of coal to its Indian customers. Every year, the company deploys 130 ships to transport the cargo, for which it had entered into long-term and short-term charter contracts with owners. Of the six million tonne, 70 per cent is sourced from Indonesia, while the rest is procured from various South African mines. Beginning 2010-11, the company will be transporting 15 million tonne of coal, both for its Indian customers and captive purpose.
Meanwhile, the company has recently achieved the financial closure for its Rs 4,300-crore power plant in Tuticorin. The 2 x 600 Mw coal-fired power project will be commissioned within 36 months and has a provision to expand up to 4000 Mw. The plant will supply power to the state electricity board and to the private sector, for which a 700-Mw contract has been signed with Tata Power.
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