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Thursday, 18 June 09
MORE FUNDS FOR COAL VIDESH ASSET BUY


The government plans to let Coal Videsh, a subsidiary of Coal India, have more than Rs 1,000 crore at its disposal to shop for assets abroad.

“The proposal to increase the financial powers of Coal India beyond Rs 1,000 crore for investments abroad would be placed before the Cabinet Committee on Economic Affairs soon,” minister of state for coal Sriprakash Jaiswal said today.

The country’s largest coal producer has been scouting for assets in Africa, Australia and Indonesia to meet the growing energy demands in the country.

Industry sources said the company was close to acquiring coking and non-coking coal blocks in Indonesia and Mozambique.

According to Jaiswal, the committee of secretaries had favoured an increase in the corpus, and other ministries and departments had sent in their comments.

Being a navratna company, Coal India can acquire assets up to Rs 1,000 crore without permission from the government.

The firm is seeking an increase in the investment limit, as vital energy assets abroad are ruling cheap because of the global recession.

Jaiswal said the government could divest up to 10 per cent in CIL through an initial market offering. 

 Source: Telegraph India (http://www.telegraphindia.com/1090618/jsp/business/story_11127106.jsp)



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