This is not the first time the company looks to divest from its Indonesian assets. In September 2015, media reports had quoted Anil Ambani, chairman of the company, as saying: “We have also decided to exit the coal business in Indonesia and we hope to complete transactions (in this regard) in the course of this year.”
The person quoted earlier added: “Indonesia-based and other foreign mining firms may be potential buyers for these mines.”
RPower holds three coal concessions that are fully explored and are ready to produce coal. The total capacity for these mines includes 1.4 billion metric tonnes coal and 450 million metric tonnes of coal reserves. RPower was among those Indian power companies
who aimed to secure coal supply from Indonesia as coal prices soared in 2010. However, with the crash in commodity prices in the following years, most of these acquisitions turned unviable for Indian power companies.
RPower reported a loss of Rs 3,558.51 crore for the March quarter, compared to a profit of Rs 189.21 crore reported in the same period a year ago. The loss was largely on account of an impairment taken on for its gas-based and solar assets. Reliance group as a whole is also facing one of its worst debt woes and asset sale will help ease the burden.