Reliance Energy Ltd and Tata Power Company are eyeing an equity stake in an Indonesian coal firm -- Bumi Resources -- to meet fuel requirements for their power plants in India.
Bumi Resources is Indonesia's largest coal producer and exporter with reserves of 52 million tonnes, enough to generate 1,000 MW power for 12 to 13 years. It has put a reserve price of $1 billion for around 30 per cent stake.
Both REL and TPC have expressed interest in taking equity stake in the Indonesian firm, industry sources said.
REL officials declined to comment. "We have been saying that we are looking at coal mines in Indonesia, South Africa and Australia. We cannot comment on any specifics," said a Tata Power spokesperson.
At present, REL has a 500 MW coal-based power