Patel Engg closes in on Indonesian coal mine buyout

MUMBAI: Construction firm Patel Engineering (PEL) is close to acquiring a mid-sized coal mine in Indonesia for Rs 100 crore. The mine will be used for PEL���s proposed 1,200-mw power plant in Gujarat.Rupen Patel, managing director of PEL, said: ���We have identified a few coal mines in Indonesia as buyout targets. Out of it, we will be acquiring one very soon.��� PEL���s target mine in Indonesia is owned by a local individual with a 100 million tonne coal reserve.

PEL���s thermal power plant is coming up in Bhavnagar in Gujarat with a proposed investment of Rs 5,000 crore. The project will be undertaken under a special purpose vehicle (SPV) and funded through a mix of debt and equity. The electricity generated will be sold to power traders, captive consumers and state governments.

Mr Patel said the company is planning to beef up its overseas operations. ���We plan to increase revenue from overseas businesses by scaling up our US operations and expanding in regions, including Africa, which offers better margins. We are looking for projects in excess of $200 million,��� he added. Currently, overseas businesses account for 15% of the company's total revenues. PEL has a current order book of Rs 6,000 crore, of which Rs 600 crore is sourced from overseas businesses. Mr Patel said, ���Construction activity in these countries is picking up. We plan to expand our US and African operations.���