Ruias-led conglomerate Essar plans to ship coal from one of its mines in Indonesia which has an estimated reserves of 64 million tonnes (MT) to fuel its power projects in India,says a report. The move comes at a time when most of the power projects in India are grappling with acute coal shortages. "India's Essar Group is investing heavily in Indonesia to secure coal for demand at home . (it) is making some big forays into the Indonesian coal sector," Forbes Indonesia magazine has said in its latest issue. Group's subsidiary Essar Energy has 1,600 MW of installed capacity and the same is expected to reach 9,670 MW by 2014. The entity is banking heavily on Indonesia and has purchased two more mines in the island nation. "What the Essar Group is doing in Indonesia . is part of long-term strategy to refocus the group on some of its core competencies in power,mining and steel. The use of Indonesian coal for Indian power plants matches up a ready supplier with an eager consumer," it said. Essar had purchased Aries coal mine spread across 5,000 hectares and with an annual potential output of 4 MT in April 2010 for $118 million and is in the process of starting production. "The mine will add to Essar Group's coal resource base,which currently is 275 MT," the magazine said. The mine's coal output will Essar's Salaya-I and II plants being built in Gujarat. Two other coal mines in Kalimantan and Sumatra will be made operational after they recieve the forest clearance. "Indonesia has maximum potential in terms of the size of the market.India is short of natural resources such as coal,iron ore,oil and gas and that is why we are investing internationally," the magazine quoted Essar Group's Chief Executive,Prashant Ruia. Besides coal mines,the $17 billion diversified group is consolidating in Indonesia's steel sector and remains the largest producer,by output,of cold-rolled steel in the country. Its production of steel is about 4 lakh tonnes there.
