CIL earmarks Rs 6,000 cr for 3 foreign buys...

State-owned Coal India (CIL) plans to invest around Rs 6,000 crore in foreign acquisitions during this financial year, according to a senior official of the company.

N C Jha, director - technical, CIL, told Business Standard that the country's largest coal producer was looking at three proposals from US, Australia and Indonesia. He was here to take part in company's initial public offer roadshow.

"These proposals include buying stake in a company setting up a green field project and a fuel supply agreement. We have earmarked Rs 6,000 crore for this financial year for these acquisitions."

US-based Peabody Energy Corp is one of the companies, which has offered to work in partnership with CIL, either through equity stake or forming a joint venture with an offtake contract.

CIL's Coal Videsh Department is working on these proposals, according to Jha. He said these three acquisitions would have a total output of 10-15 million tonnes.

Jha said CIL was also doing due diligence on two more proposals.

CIL has also decided to invest in Indian ports to create infrastructure to handle its imported coal. It plans to invest around $107 million (Rs 492.2 crore) to create infrastructure at Visakhapatnam port.

...may foray into power generation
As part of its diversification plan, the country's largest coal producer, Coal India (CIL), may foray into power generation business by joining hands with power producers.

N C Jha, director (technical), CIL, told Business Standard that the company had received proposals from major power producers, including NTPC, Neyveli Lignite Corporation and other government-run electricity boards.

"We have not firmed up any plans, but we will look at the option since we have enough resources with us, while the partner having expertise in power production," said Jha.