Tata Power exits from Indonesian coal firm Arutmin joint venture.

Tata Power announced sale of its 30 per cent stake in Indonesian coal company PT Arutmin for $500 million (Rs 3,150 crore) to cut its debt.

The development comes in the wake of the company's Mundra UMPP project facing under recovery challenges.

The company, however, does not see any fuel supply shortage after exiting Arutmin as it will continue to hold its interest in another Indonesian coal company Kaltim Prima Coal (KPC).

Tata Power through its wholly-owned subsidiary has signed an agreement to sell its 30 per cent stake in Arutmin and associated companies in coal trading and infrastructure to a Bakrie Group entity, a company statement said.