Web Exclusive | April 2013
CIL takes steps to acquire foreign coal blocks
Public-sector coal producer Coal India (CIL) is taking steps to acquire overseas thermal coal mines in order to address shortage of the fuel in India.
For this purpose, the company decided to rope in merchant bankers to advise in acquiring coal coal mines abroad. The maharatna firm invited expression of interest (EoI) for empanelment of internationally-reputed merchant bankers or investment banker for this purpose.
It may be recalled that while the company made adhoc provision of Rs 6,000 crore and Rs 5,000 crore during 2011-12 and 2012-13, respectively, it could not make any headway in acquiring coal mines overseas. As a result no amount was utilised for the purpose during fiscal 2011-12.
The Parliamentary Standing Committee on Coal and Steel in its recent report observed that for the development and acquisition of coal resources aboard, Rs 4,000 crore is reported to have been kept as an adhoc provision during 2013-14.
Early acquisition of coal resource abroad will help in overcoming the shortage of coal...CIL should accord highest priority to this proposal and pursue the same vigorously, the Parliamentary Panel said.