MEC Coal (Madhu Koneru, Executive Vice Chairman), a subsidiary of global mineral and metal conglomerate Trimex (Prasad Koneru, Chairman), that is developing Asia's largest green field mine in Indonesia, is now setting its sights on India.
Not only does MEC Coal want to secure long term supply linkages with Indian power firms, but it is also exploring other options.
Indonesian coal giant MEC Coal now is eyeing the big Indian coal market and is in talks with the country's leading power producers, Tata Power and Reliance Power for long term supply contracts.
The company is also exploring an option of signing an off take pact as per which it may swap ownership with a potential partner to set up coal-fired power plants here.
Madhu Koneru, executive vice chairman of MEC Holdings, said, "We are looking at supplying coal worth Rs 600-700 M $ per annum in the Indian markets. We are in final stages of negotiations and the due diligence process is currently on. We expect to finalise things in two months time."
Also, experts say that India is the next hot destination for coal exporters, as it begins to displace Europe, thanks to a demand of a whopping 400 to 500 million tonnes over next 10 years.
With limited coal reserves available in the domestic market and also with lot of government control over the sector, international players like MEC Coal see a huge opportunity to be tapped on one hand.
On the other, Power biggies like Tata and Reliance want to capitalize on such offers to make their own business models more profitable.