REC eyes 26 pc stake in coal mines, merchant power plants

New Delhi, December 31: The state-run Rural Electrification Corporation, which finances rural power projects in the country, is keen to pick up 26 per cent stake in coal mines and merchant power plants.

However, the company wants an option to sell the stake with a premium after five years in any such equity purchase.

“We are ready to pick up 26 per cent stake in coal mines and merchant power plants but with the option of exit route after five years at a premium,” a company official said here today, adding the company is open to investing in power projects with both private and public sector companies.

Power companies are scouting for coal mines to secure fuel supply for their projects. “In the next three years there is going to be great demand for coal mine acquisition,” the official said.

–Agencies