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Coal India invites bids for acquisition of overseas assets

By IANS,

Kolkata : State-run Coal India Limited (CIL), the world’s largest coal miner, Wednesday invited bids from investment bankers and other interested parties for acquisition of coal assets overseas.

CIL, which accounts for 80 percent of domestic production, is unable to satisfy the growing demand for coal in the country, resulting in the need for more imports.

Acquisition of assets abroad will help the coal behemoth to meet the demand-supply gap.

“Coal India seeks Expression of Interest from investment bankers, owners or owner’s representatives for acquisition of coal assets abroad,” the company said in a notice.

CIL chairman S. Narsing Rao recently said the company would miss its production target for the current financial year by up to six million tonnes.

During the third quarter of this fiscal, coal production at 117.37 million tonnes witnessed a nominal 2.4 percent growth compared to same period previous fiscal.

The coal minor reported a 8.85 percent rise in net profit for the quarter ended Dec 31, 2012, to Rs.4,395.11 crore from Rs.4,037.76 crore for the like period a year ago.