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Mrunal [Economy] Coal acquisition from Abroad: ICVL and its problem Print

[Economy] Coal acquisition from Abroad: ICVL and its problem

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What is ICVL?
Why was ICVL formed?
Whats ICVLs problem?
Why no acquisition of coal mines abroad?
Coal Indias problem
Mock Questions

What is ICVL?
International Coal Ventures Limited (ICVL)
It is a joint venture company
formed in 2009 jointly by following entities:
Administrative control
Steel Authority of India Ltd (SAIL)
Ministry of Steel
Rashtriya Ispat Nigam Ltd (RINL)
Ministry of Steel
National Mineral Development Corporation (NMDC) Ministry of Steel
National Thermal Power Corporation
Ministry of Power
Coal India Limited (CIL)
Ministry of Coal
It has a capital base of about Rs 10,000 crore and enjoys the powers of a
navaratna company.

Why was ICVL formed?

To secure metallurgical coal and thermal coal mines abroad, preferably in
Australia/ New Zealand, Indonesia, Canada/ USA, South Africa/ Mozambique.
By the way India has sufficient coal in its own land, but it is either located in
Naxal region or cannot be mined due to environmental clearances/ Supereme
Court order, hence the need to acquire more coal from abroad.
Type
Use
Metallurgical coal to make coke for the iron and steel industry.
Thermal coal
electricity generation in thermal power plants.

Whats ICVLs problem?

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9/26/13

Mrunal [Economy] Coal acquisition from Abroad: ICVL and its problem Print

Ever since its formation, it has failed to acquire any overseas coal assets either
through bids or through takeovers.
This non-performance by ICVL has spurred members to quit the ICVL.
So on one hand you cant dig enough coal from India, on the other hand, you are
not acquiring enough coal from abroad. What will happen?
a. WPI will increase
b. IIP will decrease
c. GDP will decrease.
d. All of above.

Why no acquisition of coal mines abroad?

Its members have been doing overseas acquisitions on their own.
Mineral giant NMDC went ahead and secured mines in Australia and
CIL secured two coal blocks in Mozambique.
These individual pursuits by the members are diluting the collective efforts made
by them under ICVL.

Coal Indias problem

NTPC has already quit from this ICVL because of its non performance.
Of the remaining four members, three are under the administrative control of the
steel ministry and are consumers of metallurgical coal to be sourced through
ICVL.
Whereas Coal India (CIL) itself is a coal seller.
So, the business interest of CIL would be seriously compromised if it remains in
this ICVL gang.
Therefore, Coal India is also thinking about quitting ICVL gang.

Mock Questions
Q1. Match the following

1. Rashtriya Ispat Nigam Ltd (RINL)

2. National Thermal Power Corporation
3. Coal India Limited (CIL)

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2.
3.
4.

Ministry of Mines and Mineral

Ministry of Coal
Ministry of Power
Ministry of Steel

Q2. Write an Essay on following

Energy security and Environmental Protection cannot be achieved
simultaneously.

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Mrunal [Economy] Coal acquisition from Abroad: ICVL and its problem Print

URL to article: http://mrunal.org/2012/08/econ-icvl.html

Posted By On 27/08/2012 @ 05:13 In the category Economy

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