Overseas acquisitions for PSUs to become faster

The Department of Public Enterprises will soon move a Cabinet note to allow the PSUs to acquire natural assets like oil, coal and mines abroad without the government nod.

The proposal has already got the approval of the Heavy Industries and the Public Enterprises Ministry.

"The policy is now ready for placing before the Cabinet," a Department of Public Enterprises (DPE) official said.

An empowered committee headed by Cabinet Secretary Ajit Kumar Seth will be put in place for clearing the PSUs' projects for acquisition of strategic assets overseas.

Besides, the panel would also include Secretaries of the administrative ministry (in charge) of PSU, its Chairman and Managing Director and the representatives of ministries of external affairs, law and finance.

Once the fast track mechanism is in place, the state-run companies, particularly in the strategic areas of coal, oil and mines, will be able to seek approval for investments abroad directly from the high-powered committee within three weeks.

Under the present system, the approval process takes up to six months.

The move is aimed at fighting competition from neighbouring country China. Besides, it would help in providing a cushion to the PSUs to fight competition, posed by private companies in India looking at similar opportunities overseas.

The world's largest coal producer, Coal India, is in talks with the US-based Peabody Energy and Massey Energy for stakes in the mines owned by these companies.

The state-run steel major SAIL along with NTPC, Coal India, Rashtriya Ispat Nigam Ltd is also scouting for coal mines abroad independently as well as through International Coal Ventures Ltd (ICVL).