L&T, KPCL close to deal for a coal mine acquisition

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Bangalore, Sept. 1

Engineering major L&T Ltd and Karnataka Power Corporation Ltd (KPCL) are on the verge of entering into a joint venture agreement for acquiring a coal mine in Indonesia.

KPCL is the Karnataka state government owned public sector power producer, with both thermal and hydel assets. KPCL's Managing Director, Mr S.M. Jaamdar, confirmed the development and said, "We are still exploring the possibility and hope to arrive at an arrangement soon." The financial modalities for the joint venture were still under discussion, he said. But indications are that it was likely to be on a 50:50 basis and would be leveraging on each other's core competencies. KPCL is among the largest integrated power producers in the country.

Mr Jaamdar said KPCL was also examining extension of the joint venture with L&T for building large power plants to overcome balance sheet limits. KPCL's preference was for super critical plants or boiler turbine generation equipment of about 600 MW plus. If the joint venture materialised it would be one of the first public private partnerships in the country between a state government owned entity and the private sector for power generation in the country.

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