Coal India Ltd has invited bids from bankers and interested parties for acquiring assets abroad, a move that would help the company meet shortages as it battles problems in enhancing its output.

Coal India seeks Expression of Interest (EoI) from investment bankers, owners/owner’s representatives for the acquisition of coal assets abroad,” CIL said.

The bids have been invited by Coal India Videsh, set up with the intent of enhancing the nation’s energy security.

Coal Minister Sriprakash Jaiswal had said recently that acquisition of coal mines overseas should be done in an aggressive manner to meet the country’s energy requirements.

In order to tide over the fossil fuel shortages, the Government is also proposing to import coal and pooling the domestic and international prices.

Meanwhile, CIL has already started the process for assessing the reserves of its mines in Mozambique and has already invited bids for taking up drilling at the blocks.

According to the company, two coal blocks — A1 and A2 — at Motaize in Tete Province of Mozambique are spread over 200 sq km and their exploration may take over two years.

The demand-supply gap of coal was 161.5 million tonnes last fiscal and is estimated to go up to 200 mt in 2016-17.

(This article was published on February 27, 2013)
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