R Power to pick 100% in overseas coal mine

Thebullishtrends: As per the latest reports Reliance Power, the largets power company has struck a deal to buy out a coal mine in Indonesia located in South Sumatra. The valuation of the coal mine, based on its reserves, is estimated to be around Rs 20,000 crore. Reliance Power is expected to announce its acquisition in a day or two. The coal mine, which has resources of 2 billion tonnes, is spread over 100,000 acres, equivalent to Greater Mumbai area. The greenfield coal mine, a discovered asset, will be the prime source of fuel for Reliance’s power project in Krishnapatnam in Andhra Pradesh. It is estimated that the Krishnapatnam ultra mega power project would require about 14 to 15 million tonnes of coal every year. Reliance Power is understood to have acquired the coal mine for about Rs 1,000 crore. It has acquired 100% interest in this coal mine. Reliance Power share price closed on Friday at Rs.337.45.