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NTPC readies Rs 1.6 lakh cr war chest for next 5 years

08 Jun 2010 Evaluate

NTPC has readied a war chest of around Rs 1.6 lakh crore for the next five years even as it closes in on a coal mine in Western Australia to source fuel for its power projects. Its other co-owned special purpose vehicle, International Coal Ventures Ltd (ICVL), has also shortlisted a coal mine in Australia for acquisition.

 

ICVL is close to acquiring a mine in Queensland, which has estimated reserves of 221 million tonnes. They have appointed merchant bankers, legal advisors and technical experts to do the due diligence. ICVL is a special purpose vehicle formed jointly in 2008 by SAIL, NTPC, Coal India, Rashtriya Ispat Nigam Ltd and National Mineral Development Corporation. But it has not made much of a dent since it began operations.

 

NTPC has also zeroed in on mines in Western Australia to secure thermal coal assets. It is doing due diligence in Western Australia on mines with estimated reserves of 350-400 million tonnes. NTPC plans to buy a stake in an existing mine with reserves of around 150 mt and the rest will be through a new coal mine.

 

In 2009-10, India imported about 60 mt of coal and this figure is expected to rise to 100 mt during the current fiscal. NTPC has cash reserves of Rs 18,000 crore while its capex for the current year is about Rs 29,000 crore.

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