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December 28, 2007 |
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TATA POWER: To Raise INR4,000 Crore for Shipping & Logistics Biz Tata Power Company Ltd plans to go into shipping and logistics, and raise as much as INR4,000 crore, various reports say. According to The Hindus Business Line, Tata Power wants to venture into the shipping and logistics business to facilitate coal shipment for the company's power plants. Tata Power's plans to foray into shipping comes after its acquisition of 30% stake in three Indonesian coal firms early this year for US$1.1 billion, the Press Trust of India notes. The company intends to ship coal from Indonesia for its power plants, including the 4,000 MW Mundra project in Gujarat, PTI adds. The company disclosed in a filing with the Bombay Stock Exchange that in addition to the proposed entry into shipping, shareholders will consider approval by postal ballot of the company's plans to raise as much as INR4,000 crore through the offering of securities in the local or international markets. "The company is in an aggressive expansion phase and, in the next five years, plans to add 10,000 MW capacity based on thermal coal," Business Line relates. To conduct the postal ballot, the company's board of directors appointed Ms. Shirin Bharucha as scrutinizer. Shareholders have until Jan. 16, 2008, to give their consent to the proposals. The scrutinizer will submit a report to the chairman after completion of the scrutiny and the results of the postal ballot will be announced on or before Jan. 18. About Tata Power Tata Power Company Ltd. -- http://www.tatapower.com/ -- is a licensee engaged in generation and supply power to bulk consumers in the Mumbai metropolitan area. The company operates four thermal plants with a combined capacity of 1,350 MW, and three hydroelectric plants aggregating 447 MW; all of these supply power to the Mumbai licence area. The company also has a plant that supplies power to Tata Steel. In addition, Tata Power has an 81-MW independent power project at Belgaum that sells power to Karnataka Power Transmission Corporation Limited. * * * Standard & Poor's Ratings Services, on Aug. 24, 2007, lowered its corporate credit rating on India's Tata Power Co. Ltd. to 'BB-' from 'BB+'. The outlook is stable. At the same time, the rating on Tata Power's US$300 million senior unsecured bonds have been lowered to 'BB-' from 'BB+'. Moody's Investors Service, on July 3, 2007, downgraded the corporate family rating of Tata Power Company to Ba3 from Ba1. At the same time, Moody's has downgraded its senior unsecured bond rating to B1 from Ba2. The ratings outlook is negative. |
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