CIL to spend Rs35,000 cr on foreign acquisitions by 2017

Coal India Ltd, the country's and the world's biggest coal producer, has proposed an ad-hoc provision of Rs35,000 crore for acquisition and development of mines abroad by 2017, the government told Parliament today.

Of this amount, "Rs 25,000 crore has been kept for acquisition and development of coal blocks in other countries like South Africa, Indonesia, Australia, the USA, and Columbia," minister of state for coal Pratik Prakashbapu Patil said in a written reply in Rajya Sabha.

The remaining Rs10,000 crore will be for exploration and development of two allotted coal blocks in Mozambique along with logistic infrastructure during the 12th Five-Year Plan (2012-17).

The minister said that the annual production expected from coal assets abroad would depend upon the specific production potential of each of such coal block or mine.

"The decision regarding use of additional production envisaged and the companies to whom such coal will be sold would depend upon the type/quality of saleable coal available from CIL and mines in Mozambique and other coal assets expected to be acquired in other countries," he said.

Patil said CIL has also proposed a capital outlay of Rs25,400 crore for the 12th Plan, including Rs11,385 crore for ongoing projects, Rs2,491 crore for new projects and Rs7,039 for non-mining projects.