Centre to prioritise getting contracts for coking coal imports

Till now, CIL has been considering whether to buy coking coal mines or pick up stakes in companies in Australia, Canada, the US and Russia

Central government, Coking coal, Coal mines, Coal India, Australia, Canada, US, Russia

The Central government will now prioritise getting contracts for coking coal imports at competitive prices instead of trying to buy coal mines. Coal India (CIL) will consider picking up stakes in coking coal companies instead of an outright purchase.

Till now, CIL has been considering whether to buy coking coal mines or pick up stakes in companies in Australia, Canada, the US and Russia. It is also about to float a tender to select merchant bankers who will guide CIL through the process. A memorandum of understanding (MoU) was also signed between Russia and CIL.

The company was expected to sign definitive agreements with Australia and Canada by the end of FY20. Apart from Russia, CIL had nearly narrowed down on an Australian company, where picking up 20-25% equity stake was considered for an off-take commitment and an ad hoc budget was also allocated.

The Australian company has six licences for coal mining at the application stage and one licence has been granted to it by authorities.

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