India?s Neyveli Lignite to acquire overseas coal assets

India?s state-owned Neyveli Lignite has shortlisted 18 odd proposals -- out of 89 it has received from companies in various nations such as Indonesia, Australia, Mozambique and the US -- for buying coal assets overseas.

The company is looking to acquire 2-3 assets for supply of 2-10 million tons (MT) of coal in a year to secure long- term fuel linkages to its upcoming power projects.

"We have shortlisted about 20 per cent of the 89 proposals for acquiring assets as well as long-term coal linkages, which we received from Indonesia, Mozambique, Australia, Columbia, US and Canada. We have sought details from the companies," a top Neyveli Lignite official told PTI as quoted by India Times.

The 89 proposals are under five different categories, including joint ventures, he said.

Most of the 20 percent proposals shortlisted are from Indonesia and many companies have offered multiple proposals, the official added.

"Once we complete the due-diligence by the end of next month, we will be in a position to acquire at least two to three assets to secure 2-10 million tons of fuel linkages for our power project," he said.

The Tamil Nadu-based lignite miner had earlier this year floated 'Expression of Interest' (EOI) for acquiring assets abroad for long-term coal supplies for the upcoming power plants and also for acquiring stakes in mining firms.

NLC has plans for growth in power generation capacity and is expanding its activities not only at Neyveli, but also in other parts of the country. Its fuel needs are likely to shoot up to 10 MTPA once all these projects are commissioned. (*)