Tata Power International (TPIPL), a Singapore company & wholly owned subsidiary of Tata Power has signed an agreement with KS Orka Renewables for the sale of its 50% stake in OTP Geothermal (OTP). The aggregate cash consideration for TPIPL’s 50% stake is US$30 million.
OTP, a 50:50 joint venture with Origin Energy, holds a 95 percent interest in Indonesia’s PT Sorik Marapi Geothermal Power (SMGP). SMGP is currently pursuing development of 240 MW Sorik Marapi Geothermal Power Project in North Sumatra. The transition is expected to benefit the project development.
The sale is subject to customary conditions precedent (CPs) including approvals from relevant Indonesian government authorities. The company targets to complete the sale in next three months subject to satisfaction of the conditions stated above.
TPIPL has significant investments in Indonesia and remains committed to development of Indonesian power and energy sector. The Company’s other investments in Indonesia include investments in PT Kaltim Prima Coal, PT Arutmin Indonesia and PT Baramulti Suksessarana Tbk. The divestment of its interest in OTP is consistent with the company’s strategy to constantly review its businesses and restructure, as required, to deliver long term value to shareholders.
Tata Power is India’s largest integrated power company with a growing international presence. The Company together with its subsidiaries and jointly controlled entities has an installed gross generation capacity of 9130 MW and a presence in all the segments of the power sector viz. Fuel Security and Logistics, Generation (thermal, hydro, solar and wind), Transmission, Distribution and Trading.