CIL invites bankers to assist in investing mining biz abroad

State-owned Coal India today invited merchant bankers to assist the PSU firm in its venture of investing in prospective coal business opportunities overseas.

The development comes close on the heels of a Parliamentary Panel pulling up the maharatna firm for making no headway in acquisition of coal resources abroad.

"Coal India Ltd (CIL) invites expression of interest (EoI) for empanelment of internationally-reputed merchant bankers/investor banker for facilitating CIL to set up thermal coal mining business overseas," the company said.

The government had earlier said that CIL has proposed an ad-hoc provision of Rs 35,000 crore for acquisition and development of mines abroad by 2017.

Of the proposed amount, "Rs 25,000 crore has been kept for acquisition and development of coal blocks in other countries like South Africa, Indonesia, Australia, USA, Columbia," according to an official statement.

The remaining Rs 10,000 crore has been allocated for exploration and development of two allotted coal blocks in Mozambique during the 12th Five-Year Plan (2012-17) besides creating logistic infrastructure there, it added.

The Standing Committee on Coal and Steel in its report tabled in the Parliament this week observed that for the development and acquisition of coal resources aboard, Rs 4,000 crore is reported to have been kept as an adhoc provision during 2013-14.

The Committee expressed concern that against the adhoc provision of Rs 6,000 crore and Rs 5,000 crore during FY'12 and FY'13, respectively, CIL did not make any headway in acquiring coal mines overseas and that no amount was utilised for the purpose during fiscal 2011-12.

"...Early acquisition of coal resource abroad will help in overcoming the shortage of coal...CIL should accord highest priority to this proposal and pursue the same vigorously," the Parliamentary Panel said.