Coal India Ltd (CIL), the state-owned monopoly coal producer, is seeking the government’s approval to acquire 30 per cent stake in a coal asset in Indonesia, Chairman and Managing Director N C Jha said. He declined to share details.
Coal India has been in discussions with Indonesia’s Golden Energy Mines for a possible stake purchase in its assets. The company has earmarked Rs 6,000 crore from its Rs 10,200-crore expenditure plan for the current financial year to buy coal properties abroad, to bridge the widening gap of 83 million tonne in the demand and supply of coal.
The Bombay Stock Exchange-listed company said it has sought relaxation from the finance ministry on the current norm of minimum 12 per cent internal rate of return (IRR) for overseas investment proposals by public sector undertakings. It has argued the assets it sought to buy were unlikely to provide such high IRR.
CIL had failed to make any headway in its overseas acquisition plans last financial year too, despite a similar capex plan. However, it currently owns two new projects in Mozambique.
The company had earlier said it was looking at five overseas proposals for equity infusion in countries such as US, Australia and Indonesia.