International Coal Ventures Ltd (ICVL) is within a striking distance of acquiring its maiden coking coal asset abroad in Australia's Bowen Basin for about Rs 1,500 crore, a top official said today.
"This (the acquisition in Australia) is going to happen very soon. All necessary formalities have been completed. Our board has approved it. We are taking the necessary approvals from the competent authority and going ahead," ICVL Chairman CS Verma told reporters today.
ICVL is a joint venture company of SAIL, Coal India, Rashtriya Ispat Nigam and NMDC. SAIL is the lead partner of ICVL. NTPC was also a member of the special purpose vehicle, but later it quit the JV.
"We are very much going ahead with the acquisition. My power is up to Rs 1,500 crore and naturally, when we have sought for approval of the competent authority, it (the cost of acquisition) should be beyond Rs 1,500 crore," Verma said.
ICVL is empowered with the autonomy to acquire assets up to Rs 1,500 crore on its own. Beyond the limit, it has to take approval of the higher authorities.
Bowen Basin is rich in coal resources and contributes significantly to the overall production of coal in Australia, which meets nearly 40 per cent of India's coking coal imports.
With the aim of owning 500 million tonne of coking coal reserves by 2019-20, ICVL was set up in 2009 at the initiative of the steel ministry, but it is yet to taste success.
ICVL's objectives are acquisition of coal assets and equity participation in operating coal companies for primarily sourcing coking coal on a long term sustainable basis for the promoter companies.
The company would also soon commence due diligence of coal assets in Mozambique and the US for acquisition.