Cabinet may clear foreign acquisition SPVs of coal cos
The proposal for allowing public sector coal companies to form a special purpose vehicle (SPV) to acquire stake in overseas coal mines, as mooted by public sector coal utilities, may get the government’s nod.
By TNN |
NEW DELHI: The proposal for allowing public sector coal companies to form a special purpose vehicle (SPV) to acquire stake in overseas coal mines, as mooted by public sector coal utilities, may get the government’s nod on Thursday.
The Union Cabinet is likely to take up the issue for discussion in its next meeting, sources close to the development said. The proposed SPV would help the country meet its growing production needs. Coal India (CIL), National Thermal Power Corporation (NTPC), Rashtriya Ispat Nigam (RINL), SAIL and NMDC have planned to form an SPV to source coal from the international market, mainly Australia and Canada, to increase their output.
The proposed SPV will have an initial capital base of Rs 3,500 crore, which will eventually go up to Rs 10,000 crore. SAIL and CIL have decided to pump in Rs 1,000 crore each for the proposed SPV, while NTPC, RINL and NMDC will invest Rs 500 crore each.
The SPV will have a three-tier decision-making body. It will have an apex committee comprising the chiefs of the participating companies besides a steering committee comprising functional directors of these companies.
The Union Cabinet is likely to take up the issue for discussion in its next meeting, sources close to the development said. The proposed SPV would help the country meet its growing production needs. Coal India (CIL), National Thermal Power Corporation (NTPC), Rashtriya Ispat Nigam (RINL), SAIL and NMDC have planned to form an SPV to source coal from the international market, mainly Australia and Canada, to increase their output.
The proposed SPV will have an initial capital base of Rs 3,500 crore, which will eventually go up to Rs 10,000 crore. SAIL and CIL have decided to pump in Rs 1,000 crore each for the proposed SPV, while NTPC, RINL and NMDC will invest Rs 500 crore each.
The SPV will have a three-tier decision-making body. It will have an apex committee comprising the chiefs of the participating companies besides a steering committee comprising functional directors of these companies.
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