ICVL actively looking around for acquisition: Steel Secy

Formed in 2009, the company had set a target to own 500 MT of coking coal reserves by 2019-20

International Coal Ventures Ltd (ICVL) is "actively" looking at "various possibilities" for acquiring coal assets abroad, Steel Secretary G Mohan Kumar said today.

"ICVL is very actively looking around. It is looking at various possibilities. You will come to know about it," Kumar told reporters on the sidelines of a seminar on promoting the usage of steel slag here.

Asked if he would give any timeline for ICVL's maiden acquisition, he said, "It is too early for me to talk about it."

Formed in 2009, ICVL, a consortium of state-run firms for acquiring coal mines abroad, had set a target to own 500 MT of coking coal reserves by 2019-20. Its members are SAIL, NTPC, CIL, RINL and NMDC.

However, it has failed to taste success so far even as the consortium enjoys autonomy accorded to Navratna firms without having the formal status. Its Board is also empowered to take calls on investments of up to Rs 1,500 crore, but beyond that, it needs the assent of a higher authority.

The country's steel sector currently imports about 30 MT of coking coal and with the rising capacity, the demand for the key input is expected to rise further in the coming days.

ICVL's acquisition is expected to help in this regard.

Among the public sector steel makers, Rashtriya Ispat Nigam Ltd (RINL) depends entirely on coking coal imports to meet its demand and SAIL imports 75% of its needs from abroad.

Talking on steel demand, Kumar said it was expected to be better in the current fiscal.

"I am very optimistic about the market. It is not that steel will come to a standstill. Steel consumption will be better this year than the last year," he said.

India's steel consumption grew by just 0.6% last fiscal, the lowest in four years, to 73.93 million tonnes (MT), mainly impacted by a slower expansion of the domestic economy and lower imports.