Tata Power arm closes $30 million stake sale in OTP Geothermal

NEW DELHI:: Tata Power today said its Singapore-based subsidiary Tata Power International Pte (TPIPL) has completed sale of its 50 per cent stake in OTP Geothermal Pte to KS Orka Renewables (KS Orka) for $30 million.

TPIPL, wholly-owned subsidiary of Tata Power, had inked the stake sale agreement with KS Orka in April this year.

"TPIPL has now completed the sale of its stake in OTP to KS Orka," Tata Power said in a regulatory filing.

OTP is a 50:50 joint venture between Origin Energy Ltd and Tata Power International Pte (TPIPL), it added.

Tata Power has significant investments in Indonesia and remains committed to developing Indonesian power and energy sector.

Company's other investments in Indonesia include investments in PT Kaltim Prima Coal, PT Arutmin Indonesia and PT Baramulti Suksessarana Tbk.

The company also continues to explore thermal and renewable power project opportunities within the independent power producer (IPP) programmes of the Indonesian government, Tata Power said.

"The disinvestment 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 said.