PSU vehicle 'outpriced' in Aussie coal asset buy

International Coal Ventures Ltd, a special purpose vehicle of leading PSUs such as SAIL, Coal India, NTPC, RINL and NMDC, has been "outpriced" in its quest for coal assets in Australia, an official said.

"ICVL had bid for a mine in Australia but it has been outpriced," SAIL chairman C S Verma, who is also the head of the joint venture company, told PTI.

The International Coal Ventures Limited (ICVL) was not able to take a decision on increasing its binding bid of around USD 180 million for the Stanwell coal mine in Queensland, Australia, a steel ministry official said, adding that the bid was sealed at about USD 220 a tonne.
    
The Australian mine, which has estimated coal reserves of 200 million tonnes, could have helped ease the input cost pressure on steel companies -- besides being a source of rich thermal coal for NTPC and CIL.
    
SAIL, the country's largest steelmaker, lacks captive coking coal reserves and mostly imports the raw material.
    
The cash-rich ICVL, which has not been able to succeed in its task of acquiring any property abroad since its creation in 2008, is still scouting for coal assets.
    
"Currently, there are many other options we are looking at," Verma added.
    
Industry observers say that inter-ministerial differences still hamper the functioning of the SPV. ICVL consists of steel ministry PSUs SAIL, NMDC and RINL, power PSU NTPC and the Coal Ministry's navratna, Coal India Ltd.
    
Steel Secretary Atul Chaturvedi had earlier pointed out an anomaly in the structure of the company and sought to turn the SPV into a subsidiary of SAIL. Even NTPC and CIL had offered to quit from the joint venture.
    
However, SAIL had suggested that the company's status be retained as a private entity, which could make acquisitions overseas comparatively easier. Also, the companies have been independently scouting for such reserves.
   
ICVL, which was functionally incorporated as a private entity in 2009, has a capital base of about Rs 10,000 crore.