GMR Energy to strengthen fuel security

GMR Energy Ltd., a unit of GM Rao-led GMR Infrastructure has entered into a pact to acquire a 30 per cent stake in Indonesia’s PT Golden Energy Mines Tbk (GEMS) for $450-$550 million in cash, joining the line of Indian firms buying coal assets across the globe to seek fuel security. As part of the deal, which is expected to close in calendar year 2011, GMR Energy Ltd has entered into an off-take agreement with GEMS, a unit of Dian Swastatika Sentosa , to buy coal over the next 25 years commencing Jan 1, 2012. The annual off-take will steadily increase to 10 MTPA over the coming years. The buy is expected to enhance the fuel security of the power plants under construction and development by GMR Energy and also provide a coal portfolio for trading activity.

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