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Tata Power ponders fleet investment

Tata Power ponders fleet investment

Mumbai: India's Tata Power Company has announced that it is considering entering the shipping sector through the purchase of ships or stakes in shipping companies that will to transport thermal coal from Indonesia to its various power plants, including the 4,000 MW Mundra project in Gujarat. The company has spent $1.1bn earlier this year to purchase a 30% stake in three Indonesian coal plants.

Tata Power plans to raise Rs4,000 crore ($1bn) through the issue of securities on the domestic or international markets has said that its shareholders will have the option to vote on these plans through postal ballot by January 16. Although the company has not specifically said that the funds from the issue would be used to purchase vessels, it is worth noting that the dry bulk market is at an all time high as are vessel costs.

Tata Power is expected to announce the results of the ballot on or before January 18.  [21/12/07]