Coal India Ltd is in advanced stages to acquire a 30 per cent stake in an Indonesia coal firm, said the company's Chairman Mr N.C. Jha.
The company has sought the Government's permission to go ahead with the deal, Mr Jha said without revealing the target entity.
Coal India, for some time now, has been eyeing assets in countries such as Indonesia, Australia and the US. Reports suggest that Coal India is in talks with the Indonesian firm Golden Energy Mines for a possible stake acquisition.
Coal India has sought Government approval on buying stake in an unlisted entity of a listed firm. The state-owned units are allowed to buy in a listed firm.
Also, CIL has sought clarification from the Finance Ministry on parameters such as the internal rate of returns. According to the existing rule, the return on investment should be 12 per cent.
“Internal rate of return (IRR) of 12 per cent is what is required as per the current guideline. But, 12 per cent IRR is generally not coming on such investment so we have sought clarification whether IRR should be a criteria,” Mr Jha said.