Subhash Projects & Marketing and Emco
have agreed to jointly buy 83 per cent of Indonesian coal mine PT Bism for about
Rs.300 crore. The stake will be acquired by joining Indian firms trying to
secure fuel supplies by buying assets abroad. The deal will be closed by
September 2008.
Subhash Projects will buy equity in
the mine through its group company Subhash Kabini Power Corporation, which owns
and operates the Kabini dam hydropower project in Karnataka. Coal from the mine
will initially be sold to Indian customers until the group sets up its own 2,200
MW coal based power plant on the country's eastern coast.