New Delhi: International Coal Ventures Ltd (ICVL) is within a striking distance of acquiring its maiden coking coal asset abroad in Australia’s Bowen Basin for about R 1,500 crore, a top official said.
‘‘This (the acquisition in Australia) is going to happen very soon. All necessary formalities have been completed. Our board has approved it. We are taking the necessary approvals from the competent authority and going ahead,’’ ICVL Chairman CS Verma told reporters on Wednesday.
ICVL is a JV company of SAIL, Coal India, Rashtriya Ispat Nigam and NMDC. SAIL is the lead partner of ICVL. NTPC was also a member of the special purpose vehicle, but later it quit the joint venture.
‘‘We are very much going ahead with the acquisition. My power is up to R 1,500 crore and naturally, when we have sought for approval of the competent authority, it (the cost of acquisition) should be beyond R1,500 crore,’’ Verma said.
ICVL is empowered with the autonomy to acquire assets up to R1,500 crore on its own. Beyond the limit, it has to take approval of the higher authorities.
Bowen Basin is rich in coal resources and contributes significantly to the overall production of coal in Australia, which meets nearly 40% of India’s coking coal imports.
ICVL’s objectives are acquisition of coal assets and equity participation in operating coal companies for primarily sourcing coking coal on a long term sustainable basis for the promoter companies. The company would also soon commence due diligence of coal assets in Mozambique and the US for acquisition.