Government likely to buy stake in foreign coal mines

Union Cabinet is likely to consider a special purpose vehicle (SPV) to acquire stake in overseas coalmines for meeting growing production demands. The SPV will be formed by Coal India Ltd. (CIL), NTPC Ltd., Rashtriya Ispat Nigam Ltd (RINL), Steel Authority of India Ltd. (SAIL) and NMDC Ltd. The proposed capital base of the SPV is likely to be around Rs. 3500 crores which will eventually rise to Rs. 10000 crores. SAIL and CIL have decided to invest Rs. 1000 crores each for the proposed SPV while the rest three will pump in Rs.500 crores each. The SPV will have a three-tier decision making body. It will have an apex committee comprising of the heads of these five companies and a steering committee formed by the functional directors of these companies.