The Indian public sector companies are planning to acquire coal mines abroad with a huge investment of Rs 3500 crore (Rs 35 billion) to meet country's demand of steel industry and power sector.
In a written reply in the Lok Sabha Minister of State for Coal Dasari Narayan Rao said, the government has given approval for the formation of a Special Purpose Vehicle (SPV) to Steel Authority India Limited (SAIL), Rashriya Ispat Nigam Limited (RINL), National Thermal Power Corporation (NTPC), Coal India Limited (CIL) and National Mineral Development Corporation (NMDC) for acquiring coal mines to make reserves of coking coal and thermal
coal to contain the demand.
He said as an initial investment SAIL and CIL have contributed Rs 1000 crore (Rs 10 billion) each while other three PSUs have put Rs 500 crore (Rs 5 billion) each.
The approved initial authorised capital of the SPV has been fixed at Rs 10,000 crore (Rs 100 billion) and the initial equity capital is Rs 3,500 crore (Rs 35 billion) to be contributed by the five PSUs.
Rao also said that Coal India Limited (CIL) through its subsidiary Coal Videsh has also been exploring opportunities for acquisition of coal properties in Mozambique, Zimbabwe, South Africa, Canada and Australia.