MUMBAI (Commodity Online): Power major, Tata Power Company Ltd (BOM:500400) zoomed on the bourses today as the company is believed to be planning to increase its coal mining capacity in Indonesia by a fourth in next fiscal.

Tata Power stocks gained over 5% to Rs.1,334.55 on the closing of the trading hours on the Bombay Stock Exchange (BSE) today. Meanwhile, the BSE Sensex was up 227.45 points, or 1.36%, to 17,000.01 points on Wednesday.

The stock hit a high of Rs.1346.75 and a low of Rs.1275 so far during the day. The large-cap power generation company has an equity capital of Rs.237.31 crore.

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Tata Power's excutive director S. Ramakrishnan told the media on Wednesday, that the company’s coal mining capacity would be increased to 75 metric tonnes per year from the existing 60 metric tonnes. According to reports, the increase in mining capacity could mean higher volumes and sales because of demand from markets such as India.

Tata Power owns 30% stakes in two Indonesian coal mines belonging to PT Bumi Resources, purchased in June 2007. Tata Power imports 3 mt of coal for its plant in Trombay, Mumbai, 1 mt of which comes from the Bumi coal fields.

Tata Power, which generates and supplies electricity in Mumbai and its suburbs, also plans to increase power generation from an annual 3,000 megawatts (MW) currently to 4,242 MW in 2011 and further to 5,842 MW in 2012, Ramakrishnan added. Tata Power Company's net profit rose 28.5% to Rs.147.89 crore on a 12.3% rise in sales to Rs.1527.80 crore in Q3 December 2009 over Q3 December 2008.

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