Tata Power, facing under-recovery challenges in its Mundra UMPP operations and cash flow concerns, has decided to exit from PT Arutmin Indonesia to get additional cash flow and to reduce its consolidated debt. Accordingly, Tata Power has signed an agreement to sell its 30% stake in Arutmin and associated companies in coal trading and infrastructure, to a Bakrie Group entity. The aggregate consideration for Tata Power’s 30% stake is approximately US$500m, subject to certain closing adjustments. The sale is subject to certain conditions and restructuring actions, which the Company targets to complete in the next three months.Tata Power, however, continues to hold its equity stake in PT Kaltim Prima Coal (KPC), which owns one of the largest thermal coal producing mines in the world. KPC will also continue to be a part of the supply chain for Tata Power Group’s coal off-take requirements. Tata Power does not expect any impact on the coal supplies to its thermal power plants in India, since the group will retain its stake in KPC and will continue its coal supply agreement wit Arutmin.