Govt asks CIL,IVCL to step up Africa acquisition efforts

The government has asked Coal India Ltd to focus on executing greenfield projects abroad besides asking International Coal Ventures Limited...

The government has asked Coal India Ltd (CIL) to focus on executing greenfield projects abroad besides asking International Coal Ventures Limited (ICVL) a special purpose vehicle,under the steel ministry,of leading PSUs to scout for acquisition of coal assets. This will ensure the two do not tread on each others toes.

In a recent meeting called by principal secretary in the Prime Ministers office T K A Nair,CIL and ICVL were asked to intensify their efforts to acquire coal properties in the rim of Africa countries Swaziland,Mozambique and Malawi. It has also suggested that private steel behemoths such as Tata,Essar and Jindal be involved in evolving a public-private partnership mechanism for joint acquisitions in these countries.

In the meeting,the ministry of external affairs noted that a joint working group (JWG) already exists in the coal ministry,and this group may negotiate with the Mozambique government. The MEA was of the opinion that CIL should apprise it of the requirement of railway lines and port facilities for evacuation of coal from these countries so that it could possibly be clubbed with the ongoing upgradation of railway lines there.

Steel ministry officials present in the meeting said besides Africa,ICVL was also scouting for coal properties in Australia,Canada,Indonesia and the US. The Mozambique government has granted exploration licences for two coal blocks recently,and CIL will now have to form JV with the African nations government,or an entity nominated by the latter,wherein the state-run coal giant should have 85 per cent stake,sources said.