CIL board seeks clarifications on Limpopo govt pact
Posted on: 10:55 AM IST Mar 24, 2013
New Delhi: The Coal India board has sought clarifications on draft agreement with the Limpopo government in South Africa on responsibilities to be shared between them while acquiring mines through a JV, a move that may delay the company's acquisition plans. The government of Limpopo, the northernmost province of South Africa, had approached Coal India Ltd (CIL) requesting it to form a joint venture with one of its public sector firms for acquiring coal mines there.
"The draft agreement between CIL and Limpopo government on the broad outlines of responsibilities between the two, among other things, was put for approval before the PSU's board. However, the matter got deferred as the board sought some clarifications on the same," said a source close to the development. CIL has built up a war-chest of Rs 35,000 crore for the acquisition of coal assets abroad during the current Five Year Plan period (2012-17).
The state-owned CIL has appointed Deloitte to help the coal PSU to form a subsidiary firm in South Africa to acquire mines. The world's largest coal miner has zeroed-in on three unlisted overseas coal assets for acquisition.
CIL, which accounts for more than 80 per cent of the domestic coal production, missed its revised 2011-12 target. It achieved only 435.84 million tonnes (MT), as against the targeted 447 MT.