New Delhi: State-owned Coal India (CIL) has earmarked an over Rs 10,000 crore capital expenditure for the current fiscal on capacity expansion and acquisitions that are likely to be completed within the next six months.
“We have set aside Rs 6,000 crore for acquisitions and Rs 4,220 crore on developing different projects within the country,” CIL chairman and managing director N.C Jha told reporters here.
The cash-rich company, the world’s largest coal producer, would not require to raise any funds for financing the proposed capex, which would be financed entirely through internal accruals.
Jha said the company was hopeful of signing deals for three acquisitions in Australia, the US and Indonesia within the next six months.
“We are at advanced stages of negotiation for buying coal blocks in Australia, the US and Indonesia and the deals could be signed within the next six months,” he said.
The acquisition of overseas coal blocks, having reserves ranging between 50 million tonne (mt) and 150 mt, would help CIL bridge the ever-increasing demand-supply gap within the country.
India’s coal output is estimated at 554 mt in 2011-12, out of which CIL is likely to contribute 452 mt. The shortage for the current fiscal has been estimated at 137 mt, most of which is likely to be met through imports.
Meanwhile, CIL, which meets over 80 per cent of domestic demand, said it has received proposals from five global biggies to import 360 mt of coal over 10 years, with an average of 36 MT imported every year.
“We have received 18 proposals from five companies abroad. We are currently evaluating their proposals,” Jha said.