Ahmedabad, Sept. 7:

Keeping in tune with its ambitious plans to set up a 10,000-MW, coal-based thermal power capacity by 2011-12, the Adani Group is in an advanced stage of negotiation to acquire more captive thermal coal blocks in Indonesia.

The Adanis currently have a low-sulphur and low-ash coal block with 140 million tonnes of geological reserves in Indonesia, which was recently brought into production. Applications are also submitted to the Indian Coal Ministry for offering captive linkage to the upcoming 4,620-MW facility of Adani Power Ltd at Mundra in West Gujarat.

“We are looking for acquisition of more coal reserves in Indonesia and are in an advanced stage of negotiations with a few parties,” the Group Chairman, Mr Gautam Adani, told Business Line in an interview here.

“We prefer Indonesia as a destination due to its proximity to the Indian shores resulting into lower freight cost and voyage time,” he said. The alternative destinations under consideration are in Africa.

According to Mr Adani, the Group is aiming to have a captive coal reserves — having an annual production capacity of over 40 million tonnes in the next five to six years.

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