Coal India board directs PSU to withdraw from ICVL

Company had earlier felt that continuing with ICVL only involved financial burden without commensurate advantage

State-owned CIL today said its board has directed the PSU to withdraw from International Coal Ventures Ltd.

ICVL is a PSU consortium formed to acquire coal mines overseas.

The company also said that its board gave approval for the first year expenditure of Rs 1,019 crore to start the work for setting up MCL's - Coal India arm - 2x800 mw coal-based super critical thermal power plant in Odisha.

"The CIL (Coal India) board, in its meeting held on February 13, directed that Coal India should withdraw from International Coal Ventures Private Limited (ICVL)," the company said in a filing to BSE.

CIL had earlier felt that continuing with ICVL only involved financial burden without commensurate advantage.

Besides CIL, ICVL's promoters includes PSUs like SAIL and RINL. ICVL was created in 2009 to ensure long-term security of the supply of critical raw material for domestic steel industry.

In a separate filing to BSE, CIL said "the board reviewed its decision and accorded its approval for the first year expenditure of Rs 1,019 crore to start the work to set up 2x800 mw coal-based super critical thermal power plant (in Odisha)."

The board also advised that as soon as Coal India has a full board, the proposal will be placed for its consideration for the approval of the Project Report, CIL said.

"We have intimated stock exchanges...Dated November 28, 2014 about the approval of the project report by CIL board to set up..Super-critical thermal power plant (STPP)...With a total investment of Rs 11,368.18 crore," CIL said.