Mumbai Tata Power said on Friday that it has signed a long-term coal supply agreement with Pt Antang Gunung Meratus, a subsidiary of Indonesian company Pt Baramulti Sukes Sarana or BSSR.

In order to secure the coal supplies, Tata Power’s 100% subsidiary Khopoli Investments Ltd has also entered into an agreement which gives Khopoli an option to take 26% stake in BSSR, subject to necessary approvals. The Indonesian companies own one billion tonne of coal resources in South and East Kalimantan in Indonesia.