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Tata Power to enter shipping market

Tata Power to enter shipping market

Mumbai: Tata Power, one of India's leading utility companies, has announced that it is considering the purchase new dry bulk vessels or shares in a shipping company. The announcement comes on the heels of the company's $1.3bn acquisition of a 30% stake in two Indonesian thermal coal producers, PT Kaltim Prima Coal and PT Arutmin Indonesia, securing 10m tons of coal for proposed power plants to be built on India's west coast.
Prasad Menon, tata Power md has confirmed that the company is currently in negotiations with a number of shipping companies and is also looking into the possibility of long term charters of vessels.  Although the rational for the move may be to reduce transportation costs for the coal, the current boom in the shipping market would mean the company would have to invest a substantial sum of money in the project. 

Tata Power is expected to import close to 21m tonnes of coal over the next five years to fuel its various projects.  [28/06/07]

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