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December 06, 2007 15:23 IST
The Indian public sector companies are planning to acquire coal mines abroad with a huge investment of Rs 3500 crore (Rs 35 billion) to meet country's demand of steel industry and power sector.
In a written reply in the Lok Sabha Minister of State for Coal Dasari Narayan Rao said, the government has given approval for the formation of a Special Purpose Vehicle (SPV) to Steel Authority India Limited (SAIL [Get Quote]), Rashriya Ispat Nigam Limited (RINL), National Thermal Power [Get Quote] Corporation (NTPC), Coal India Limited (CIL) and National Mineral [Get Quote] Development Corporation (NMDC) for acquiring coal mines to make reserves of coking coal and thermal coal to contain the demand.
He said as an initial investment SAIL and CIL have contributed Rs 1000 crore (Rs 10 billion) each while other three PSUs have put Rs 500 crore (Rs 5 billion) each.
The approved initial authorised capital of the SPV has been fixed at Rs 10,000 crore (Rs 100 billion) and the initial equity capital is Rs 3,500 crore (Rs 35 billion) to be contributed by the five PSUs.
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