SAIL, RINL, NTPC, CIL, NMDC form joint venture; to invest Rs3,500 crore in coal mines overseas

Mumbai: Five major public sector companies – Steel Authority of India (SAIL), Rashtriya Ispat Nigam Ltd, (RINL), National Thermal Power Corporation (NTPC), Coal India Ltd (CIL) and National mineral Development corporation (NMDC) - have joined hands to acquire coal mines abroad, to meet the demand of steel industry, power sector and others.

The government has approved formation of a special purpose vehicle (SPV) with five PSUs as constituents for acquiring coal mines abroad to ensure security of supply of coking coal and high quality thermal coal to meet the demand.

The approved initial authorised capital of the SPV has been fixed at Rs10,000 crore and the initial equity capital is Rs3,500 crore to be contributed by the five PSUs.

SAIL and CIL have put in Rs1,000 crore each as an initial equity capital while the other three PSUs have contributed Rs500 crore each, minister of state for coal Dasari Narayan Rao said in a written reply in Lok Sabha.

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, the minister said.

The minister said the country''s total coal reserves stood at 255.17 billion tonnes (222.90 billion tonnes of non-coking coal and 32.27 billion tonnes of coking coal).