State owned coal miner Coal India Ltd. (CIL) Tuesday said it may withdraw from a private joint venture under the central government's ministry of steel following suggestions from its board members.
"CIL Board, in its meeting held on February 13 directed that CIL should withdraw from International Coal Ventures Pvt Ltd (ICVPL)," company secretary M. Viswanathan said in a filing with the National Stock Exchange.
CIL holds 28 percent share in the firm it may secede from.
The private company is a conglomerate between leading state-owned companies aimed at securing metallurgical coal and thermal coal assets in overseas territories and has laid down a goal to own about 500 million tonnes of net coal reserves by 2019-20.
Formed in 2009, the joint venture includes Navaratna companies like Steel Authority of India Ltd, Coal India Ltd., NTPC Ltd., National Mineral Development Corporation Ltd. and Rashtriya Ispat Nigam.
It has also been empowered with the autonomy and freedom currently accorded to Navratna companies without formal Navratna status.
"The initial authorised capital of ICVL is upto Rs.10,000 crores (over $2 billion). The initial equity capital is Rs.3,500 crores ($700 million) to be contributed by the members progressively based on investment opportunities," the ICVPL website states.
-- Indo-Asian News Service
avr/sd/bg
