CIL in advanced talks to buy stake in Indonesian coal asset

State-owned Coal India (CIL) is in advanced stages of talks to acquire about 30 per cent stake in an Indonesian coal asset, reported The Economic Times quoting CIL Chairman N C Jha.

Though he declined to divulge the identity of the company with which CIL has been negotiating with, sources close to the development said the Maharatna firm had started negotiations with Indonesia'sGolden Energy Mines for buying asset.

Golden Energy Mines, which supplies five million tonnes coal in a year to thermal power plants, is a subsidiary of the Indonesian energy and infrastructure firm Dian Swastika Sentosa Tbk.

Jha also said CIL has already sought approvals for stake buying, which is necessary for the deal, as it has been restricted from buying stake in any unlisted asset overseas.

"We have sought government clarification on buying stake in an unlisted asset of a listed firm. The issue is that the entity is not listed. We are allowed to buy in a listed firm," Jha said.

CIL has also sought clarification about internal rate of returns. As per the existing rule, the return on investment should be 12 per cent. (*)