• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Pratim Ranjan Bose

Kolkata. July 31 Coal India seems to be eyeing opportunities to acquire one or more small-sized non-coking coal assets in Indonesia. In another development, Coal Ventures International (CVI) – the SPV created by five PSUs including CIL – is short-listed to submit the price bid for a small coking coal deposit in Australia. CVI was shortlisted for the same through an open offer.

Industry sources told Business Line that CIL has recently located opportunities to acquire a few small non-coking coal deposits in Indonesia. Armed with an informal go-ahead from the Union Coal Ministry, the company had already made an on-site assessment of the assets and initiated discussions towards entering into an understanding with the local authorities and paving way launching a geological due-diligence.

According to sources, considering the complex rules of acquiring assets in that country, the company is now in the process of appointing a third party to create the framework for entering the agreements, roping in local partners and other details. Once the framework is created, CIL will launch the geological due-diligence.

Depending on the viability of the deposits, CIL would have to take the final approval from the Union Government for requisite investments.

According to sources, considering that CIL is empowered to take investment decisions of a maximum of Rs 500 crore – which is grossly insufficient for acquisition of large assets in the current price regime – the company had located smaller deposits to ensure fast acquisition of assets, if found suitable.

Parallel effort is on to convince the Centre for streamlining the existing process requiring Cabinet approval for such investment decisions. Also pending is a proposal for enhancing the empowerment to $250 million.

Meanwhile, CIL is hoping to be awarded the Navaratna status shortly, which would remove much of its existing problems in investing abroad.

Elaborating on CVI’s venture in Australia, sources said that the SPV had participated in open offer for two assets and is already shortlisted for a coking coal asset. CVI is now scheduled to submit the price bids by August.

More Stories on : Overseas Investments | Coal

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Persistent Systems to tap capital market

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line