State-run NTPC is contempalting pulling out from International Coal Ventures Ltd (ICVL), a special purpose vehicle formed for acquiring coal properties overseas.
International Coal Ventures Ltd (ICVL) is a joint venture between Steel Authority of India, Coal India, Rashtriya Ispat Nigam, National Mineral Development Corporation and National Thermal Power Corporation.
The joint venture had been conceptualised by the steel ministry to secure coking coal and thermal coal assets through overseas acquisitions.
The steel ministry had hoped to utlise the expertise of CIL, NTPC and NMDC to enable ICVL to acquire around 500 million tonnes of coking coal reserves by 2019-20.
However, the ICVL's quest for overseas acquisitions has yet to bear fruit, forcing NTPC to make a representation to the power ministry that the coal requirements of NTPC and steel companies like SAIL and RINL were different.
While NTPC requires thermal coal to fire its power units, while SAIL and RINL need coking coal, the availability of which is greater than thermal coal, for steel making.