CIL pulls out of ICVL | business | Hindustan Times
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CIL pulls out of ICVL

business Updated: May 20, 2012 21:24 IST

Amid widening gap between demand and supply of coal in the country, CIL’s board has decided to exit from International Coal Ventures Ltd, a special purpose vehicle formed to acquire mines abroad, a move that may hit the country’s efforts to buy overseas reserves.

The decision to exit from consortium was taken by the board in the meeting held on Friday.

“Coal India (CIL) board agreed to walk out of ICVL. The board felt that it was not advantageous for Coal India to be part of the consortium. Rather, the venture on the part of CIL involved financial burden without commensurate advantage,” a source close to the development told PTI.

Meanwhile, sources said there was consensus among the board members on CIL’s willingness to opt out of the joint venture.

When contacted, ICVL chairman C S Verma had said, “I have not received any such communication and I don't think that the PSU firm will quit ICVL.”

ICVL, a joint venture between companies like SAIL, CIL, and NMDC — incorporated in 2009 — was conceptualised by the steel ministry for securing much-needed coking coal and thermal coal assets in overseas territories.

SAIL and CIL each hold 28% stake each in ICVL.