CIL plans overseas arm

Coal India Ltd (CIL), with the aim of exploring the possibility of owning mining lease or setting up of joint venture coal mining companies abroad, is in the process of floating a wholly owned subsidiary, Coal Videsh Ltd.

"Coal Videsh will explore opportunities and avenues of sourcing coal from foreign land either through owning mining lease or through formation of joint venture with foreign partners," explained Sashi Kumar, chairman, CIL.

"We are at present looking at four possible locations "" Australia, Indonesia, Mozambique and South Africa. Our officials have initiated started talks with parties in these locations and are at present in the process of collecting information from these countries," he added.

D K Verma, Director Finance, said, "We are in the process of gauging the equity size required for the company. The priority will be to cater to our demand first and than sell the excess to others," he explained.

"The equity of the company will depend on the size of the mining activity we intend to take up," he added.