International Coal Ventures Limited (ICVL), a special purpose vehicle (SPV) floated by five public sector undertakings, including Coal India Limited (CIL), has identified some coal assets in Australia, Mozambique, the US and Indonesia for acquisition, a top CIL official told Business Standard.
The identified coal properties in these countries have reserves of coking coal and low-ash non-coking coal. ICVL may either forge joint ventures with the companies who own these mining assets or even buy complete stakes in these properties, the official added.
He, however, declined to spell out the details of these coal properties such as their total area and reserves and the companies owning these properties.
ICVL formed by CIL, Steel Authority of India (SAIL), National Thermal Power Corporation (NTPC), National Mineral Development Corporation (NMDC) and Rashtriya Ispat Nigam (RINL) was scouting for coal properties abroad.
The SPV has a paid-up equity of Rs 3,500 crore, out of which SAIL and CIL have contributed Rs 1,000 crore each, while the other three PSUs have contributed Rs 500 crore each.
Meanwhile, CIL has sent the draft Notice Inviting Tender (NIT) to the nine shortlisted firms in connection with the development of its underground coal mines.
“We have sent the draft NIT to the nine overseas companies shortlisted by CIL for development of its underground coal mines and are expecting feedback from these firms later this month. Tenders for the underground mines are expected to be floated next month,” the official informed.
CIL had shortlisted nine overseas firms for development of these underground mines and some of these firms have joint ventures with Indian companies. The selected firms would be responsible for planning, designing and operating these underground coal mines. Initially, these firms will also bear the costs of operation of such mines and the expenses would be later reimbursed by CIL.
The coal major had identified seven underground coal blocks which are located in the mining areas of its subsidiaries such as Eastern Coalfields Limited (ECL), South Eastern Coalfields (SECL), Mahanadi Coalfields (MCL), Western Coalfields (WCL) and Bharat Coking Coal (BCCL). It was looking to rope in some reputed overseas coal firms who could run these mines with the state-of-the-art technology.
Asked on the progress of coal-bed methane and coal-to-liquid projects, he said, “About 26 coal blocks have been allocated to different private players for coal-bed methane projects. For coal-to-liquid projects, Central Mine Planning and Design Institute, a subsidiary of CIL, has identified coal blocks and submitted its report to the Union coal ministry.”
