Coal India shortlists 12 global firms for coal imports

Coal India Ltd, the state-owned company that is reputed to be the world's largest coal producer, has shortlisted 12 global companies, including the US-based Peabody Energy, to bid for its proposal to source dry fuel to meet growing domestic demand, according to a report.

''As many as 12 global firms, including Peabody, have been short listed for Coal India's offtake agreement. The PSU has floated a second round of expression of interest, after which it plans to initiate final bids for the agreement,'' according to news agency PTI quoting an unnamed person said to be in the know of the development.

The offtake agreement, a part of CIL's three-point strategic initiative to forge global alliances, is aimed at sourcing dry fuel from global companies. Besides offtake pact, the 'navratna' firm has planned equity infusion and forming joint ventures to expand its global footprint. The term navratna implies a state-owned company that is highly profit-making.

''The 11 other firms are also from countries like the US, Indonesia, South Africa, and Australia,'' the source added.

CIL, which filed the draft prospectus for a mega IPO a fortnight ago, has put conditions for the companies to evince interest in the offtake agreement.

''One major criterion is that any foreign company which evinces interest in the pact should have an annual coal production of two million tonnes. But for Indonesian firms, the production condition is one million tonnes,'' the source added.