Mumbai, May 2: Anil Dhirubhai Ambani Group firm Reliance Power on Friday announced the acquisition of three coal mines in Indonesia with total reserves of two billion metric tonne. The acquisition was done by its wholly-owned subsidiary Reliance Coal Resources Pvt Ltd (RCRPL), which plans to invest Rs 2,400 crore in mine and related transportation infrastructure to take the capacity of these mines to over 25 million metric tonne per annum.

“Reliance Coal Resources Private Limited has entered into a definitive agreement to acquire 100 per cent economic interest in three coal concessions in Indonesia ,” it informed the stock exchanges. RCRPL has acquired Srivijaya Bintangtiga Energy, Bryayan Bintangtiga Energy and Sugico Pendragon Energy in the South Sumatra area of Indonesia spread over an area of 40,000 hectares.

The coal from the mines would be supplied to Reliance Power’s 4,000-MW ultra mega power project at Krishnapatnam in Andhra Pradesh and also to the 2,800 MW Shahapur power project in Maharashtra. As per the agreement, payment for the acquisition is linked to the actual production of coal.

RPower’s move is crucial especially in light of its proposed capacity addition of 28,200 MW with an investment of over Rs 1,12,000 crore in next 10 to 15 years. It is also important when its rival, Tata Power has already completed its acquisition of 30 per cent equity stakes at $1.1 billion in major Indonesian thermal coal producers, PT Kaltim Prima Coal and PT Arutmin Indonesia, as well as related trading companies owned by PT Bumi Resources Tbk.