CIL to invest in overseas coal mines and blocks

New Delhi, May 16 (UNI) Public sector Coal India Ltd (CIL) plans to invest in coal mines and blocks abroad having metallurgical and low ash thermal type of coal, Minister of Coal Dasari Narayan Rao told the Lok Sabha today.

In a written reply, he said this was being done with a view to enhance the energy security of the nation.

Dr Rao said the domestic reserve of this type of coal, which can be extracted with techno-commercial feasibility, is scare.

To achieve this objective of acquiring coal properties abroad, joint venture route would be one of the options.

He said the countries where CIL, proposes to pursue its foreign venture initiatives, through joint venture or otherwise, would be Australia, Canada and Mozambique, which have sufficient reserves of targeted coal, suitable geographic location to make the logistics cost for importing coal competitive and favourable Foreign Direct Investment (FDI) policy for investment in coal mining.

He said no specific opportunities have yet been identified to be taken up for acquisition, and as such it would not be possible to furnish the exact amount of investment required for this venture, he added.

UNI