Coal India Ltd (CIL) has decided to quit International Coal Ventures Ltd (ICVL), the joint venture company forged three years ago by five public sector units to jointly scout for overseas mines acquisition.
The pull-out move was approved by the CIL board which met here on Friday. The decision to exit ICVL is also believed to have the approval of the Coal Ministry.
ICVL was incorporated on May 20, 2009, with the coming together of Steel Authority of India Ltd, Rashtriya Ispat Nigam Ltd, NMDC, NTPC and CIL.
The initial authorised capital was up to Rs.10,000 crore with an initial equity capital of Rs.3,500 crore to be contributed progressively.
While SAIL and CIL each has 28 per cent share, the remaining have 14 per cent share each.
However, ICVL has failed to make any headway. Also a conflict of interest has arisen as the two steel companies and NMDC seemed to be only interested in the acquisition of coking coal mines. This was not of interest to NTPC at all and was of less interest to CIL.
Both these companies were interested in thermal coal of which there was a substantial shortage in India.
