The Hindu Business Line : Panel to consider Coal India proposal to invest abroad

New Delhi, Aug. 27 The Government has mandated an Empowered Committee of Secretaries to decide on state-owned Coal India Ltd’s proposal to invest and acquire coal assets abroad.

The Committee of Secretaries was originally constituted with the mandate to consider proposals to be taken up by International Coal Ventures Ltd — a joint venture company set up by CIL, NTPC Ltd, SAIL, RINL, and NMDC — for acquiring properties abroad. The decision was taken by the Cabinet Committee on Economic Affairs (CCEA) here on Thursday.

“The Empowered Committee of Secretaries will consider CIL proposals for investments in coal assets abroad, which are beyond the powers of its board. Such proposals will be submitted by CIL to the Empowered Committee of Secretaries and the recommendations will be placed before the CCEA,” the Home Minister, Mr P. Chidambaram, said while briefing the media of the CCEA decisions.

Demand for coal is forecast to increase sharply to about 731 million tonnes (mt) by 2011-12 from the current 474 mt.

Eyes $1-1.5-billion spend

Meanwhile, the CIL chief said it will buy mining assets in four countries — Australia, Indonesia, South Africa and the US — at an estimated investment of around $1-1.5 billion, to expand its production capacity.

“Coal India is looking to spend $1-1.5 billion in acquiring mining assets in Australia, Indonesia, South Africa and the US with a annual production capacity of 10-15 mt,” the CIL Chairman, Mr P.S. Bhattacharyya, told reporters here.

He, however, did not divulge the timeframe for these buyouts. CIL plans a capital expenditure of Rs 3,200 crore this fiscal and aims to increase production by 7.5 per cent to 435 mt over the previous year.

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