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Sembcorp's 1,320-Megawatt Power Plant in India Secures Multi-year Coal Supply Contract

February 23, 2012

Sembcorp Industries (Sembcorp) is pleased to announce that its joint venture in India, Thermal Powertech Corporation India (TPCIL), has signed an agreement with PT Bayan Resources Tbk (Bayan) for the supply of approximately one million tonnes per year of coal over 10 years. The contract, which is for an aggregate of 10 million tonnes of coal, is expected to commence in 2014. Sembcorp owns a 49% stake in TPCIL through its wholly-owned subsidiary, Sembcorp Utilities, while Gayatri Energy Ventures, a wholly-owned subsidiary of Gayatri Projects, owns the other 51% in TPCIL.

The agreement was signed by Atul Nargund, CEO of Sembcorp Utilities India and TPCIL, T V Sandeep Reddy, Managing Director of Gayatri Projects and TPCIL, Eddie Chin, President Director & CEO of Bayan, as well as David Low, Director of Sales & Marketing of Bayan. Also present to witness the signing earlier today were Tang Kin Fei, Group President & CEO of Sembcorp, and Dato’ Low Tuck Kwong, President Commissioner of Bayan.

With plant construction progressing on track at the project site in Krishnapatnam in Andhra Pradesh’s SPSR Nellore District, this coal agreement marks yet another significant milestone for Sembcorp’s first Indian power plant project, a 1,320-megawatt coal-fired power plant.

Mr Nargund said, “We are pleased to have Bayan onboard as our coal supplier. Given its established reputation for timely delivery of high-grade coal, we are confident that our plant will be able to help address the pressing power shortage in India. With part of our coal supply successfully secured at a competitive price and construction of the plant and its boiler turbines and generators well underway, we are on track to complete the project on schedule and begin full commercial operations in 2014. Backed by our proven track record in the energy sector spanning Singapore, the UK, Vietnam, China, the UAE and Oman, Sembcorp is looking forward to working with our local partner to help meet the fast-growing power demand in the southern, western and northern regions of India and support the country’s rapid development.”

The Rs 6,869 crores (S$1.9 billion) power plant will apply high efficiency supercritical technology which allows for enhanced efficiency, thereby reducing emissions of carbon dioxide and other pollutants by consuming less fuel per unit of electricity generated compared to conventional sub-critical coal-fired generating units.

Listed on the Indonesian stock exchange, Bayan is the sixth largest producer and exporter of thermal coal in Indonesia, and is reputed for its timely delivery and production of some of the country’s highest quality and energy content coal. Bayan owns and operates the Balikpapan Coal Terminal, one of the largest coal terminals in East Kalimantan with a handling throughput capacity of 15 million tonnes per annum.

This signing is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the current financial year.

- END -

For analysts' and media queries please contact:

Melissa Yee (Ms)
Group Corporate Relations
DID: +65 6723 3326
Email: [email protected]

Aedan Lai (Mr)
Senior Executive
Group Corporate Relations
DID: +65 6723 3011
Email: [email protected]


Sembcorp Industries is a leading energy, water and marine group operating across six continents worldwide. With facilities with 5,600 megawatts of gross power capacity and over seven million cubic metres of water per day in operation and under development, Sembcorp is a trusted provider of essential energy and water solutions to both industrial and municipal customers. It is also a world leader in marine and offshore engineering as well as an established brand name in integrated urban development.

The Group has total assets of over S$11 billion and employs over 9,000 employees. Listed on the main board of the Singapore Exchange, it is a component stock of the Straits Times Index, several MSCI and FTSE indices as well as the Dow Jones Sustainability Asia Pacific Index.

Note to Editors: 
Following a company rebrand, please refer to the company as “Sembcorp” (with “S” in upper case and “c” in lower case), or “Sembcorp Industries” in full. Please also note that “Sembcorp” is not an abbreviation of “Sembawang Corporation” but a brand name in itself, and it is therefore incorrect to refer to our company as “Sembawang”, “Sembawang Corporation” or similar.