(a) whether the Government has given its approval to form a Special Purpose Vehicle
(SPV) by the leading Steel Companies to acquire Coal properties abroad to meet their
growing production needs;
(b) if so, the details thereof;
(c) the reason for allowing to acquire Coal mines abroad; and
(d) the total investment involved therein?
THE MINISTER OF STATE IN THE MINISTRY OF STEEL (DR.AKHILESH DAS)
(a)to(d): Yes, Sir. The Government on 8.11.2007 has approved the proposal for setting
up of a Special Purpose Vehicle (SPV) with an initial authorized capital upto Rs.10,000
crores and an initial equity capital of up to Rs.3,500 crores. This SPV would comprise
the following equity participants from the Public Sector: Steel Authority of India Ltd
(Rs.1000 crores), Rashtriya Ispat Nigam Ltd. (Rs.500 Crores), Coal India Ltd. (Rs.1000
crores), National Thermal Power Corporation Ltd. (Rs.500 crores) and National Mineral
Development Corporation (Rs.500 crores) with eventual provision for inducting private
sector partners also, as and when warranted. This SPV would be empowered with the
autonomy and freedom currently accorded to Navaratna companies, without formal Navaratna
status.
The main objective of the proposal is to ensure supply of imported met coal of
around 5 million tonnes per annum from assets overseas as medium term target to be
achieved by 2011-12 and also to be an owner of about 500 million tonnes of met coke
reserves by 2019-20.