CIL to pursue overseas coal block acquisition plan
State-run Coal India Ltd will not drop its earlier plan to acquire mines abroad on its own even after forming a joint venture with four other public sector firms for the same purpose.
By PTI |
KOLKATA: State-run Coal India Ltd on Thursday said it will not drop its earlier plan to acquire mines abroad on its own even after forming a joint venture with four other public sector firms for the same purpose.
"We will not drop our Coal Videsh plan to acquire blocks aboard with formation of the SPV (special purpose vehicle) where we are putting Rs 1,000 crore as equity," CIL chairman Partha S Bhattacharyya said.
The Union Cabinet today approved the formation of the SPV for acquiring coal mines abroad. Besides CIL, Steel Authority of India Ltd, Rashtriya Ispat Nigam Ltd, mineral firm NMDC Ltd and power generating company NTPC Ltd are part of the SPV.
"We will put the SPV on the fast track. We will consider offering our overseas mining blocks identified to the SPV for speedier acquisition of coal mines aboard," he said.
Coal Videsh in the past had shortlisted three-four blocks in Australia and Canada. The new entity would also try to acquire coal blocks in these countries to meet rising demand for steel, cement and power sectors in India.
The proposed SPV would have an authorised capital base of Rs 10,000 crore and a paid up capital of Rs 3,500 crore, he said.
SAIL and CIL have decided to pump in Rs 1,000 crore each for the proposed SPV, while NTPC, RINL and NMDC would invest Rs 500 crore each.
The SPV would have the freedom accorded to a Navratna company and would be able to take decision on its own on matters entailing an investment of Rs 1,500 crore.
"We will not drop our Coal Videsh plan to acquire blocks aboard with formation of the SPV (special purpose vehicle) where we are putting Rs 1,000 crore as equity," CIL chairman Partha S Bhattacharyya said.
The Union Cabinet today approved the formation of the SPV for acquiring coal mines abroad. Besides CIL, Steel Authority of India Ltd, Rashtriya Ispat Nigam Ltd, mineral firm NMDC Ltd and power generating company NTPC Ltd are part of the SPV.
"We will put the SPV on the fast track. We will consider offering our overseas mining blocks identified to the SPV for speedier acquisition of coal mines aboard," he said.
Coal Videsh in the past had shortlisted three-four blocks in Australia and Canada. The new entity would also try to acquire coal blocks in these countries to meet rising demand for steel, cement and power sectors in India.
The proposed SPV would have an authorised capital base of Rs 10,000 crore and a paid up capital of Rs 3,500 crore, he said.
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SAIL and CIL have decided to pump in Rs 1,000 crore each for the proposed SPV, while NTPC, RINL and NMDC would invest Rs 500 crore each.
The SPV would have the freedom accorded to a Navratna company and would be able to take decision on its own on matters entailing an investment of Rs 1,500 crore.
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