CIL to finalise bankers for overseas mining biz plans soon

State-run Coal India Limited (CIL) will soon finalise merchant bankers who will assist the PSU firm in its plans to invest in prospective coal business opportunities overseas.

"Coal India will finalise the merchant bankers soon," a source said.

A Parliamentary Panel had earlier pulled up the Maharatna firm for making no headway in acquisition of coal resources abroad.

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Coal India Ltd (CIL) had earlier invited expression of interest (EoI) for empanelment of internationally-reputed merchant bankers/investor banker for facilitating the PSU to set up thermal coal mining business overseas.

The government had earlier said CIL has formed a sub-committee to monitor the proposals with regard to foreign investments.

CIL has proposed an ad-hoc provision of Rs 35,000 crore for acquisition and development of mines abroad by 2017. Of the proposed amount, "Rs 25,000 crore has been kept for acquisition and development of coal blocks in other countries like South Africa, Indonesia, Australia, USA, Columbia," according to an official statement.

The remaining Rs 10,000 crore has been allocated for exploration and development of two allotted coal blocks in Mozambique during the 12th Five-Year Plan (2012-17) besides creating logistic infrastructure there, it added.

The Standing Committee on Coal and Steel in its report tabled in the Parliament in April had observed that for the development and acquisition of coal resources abroad, Rs 4,000 crore is reported to have been kept as an adhoc provision during 2013-14.

The Committee said that against the adhoc provision of Rs 6,000 crore and Rs 5,000 crore during FY'12 and FY'13, respectively, CIL did not make any headway in acquiring coal mines overseas and that no amount was utilised for the purpose during fiscal 2011-12.