From the energy
security point of view Government has encouraged acquisition of coal
assets abroad. Accordingly, Coal India Limited (CIL) has taken
initiatives to acquire coal assets abroad through its Coal Videsh
CIL has been granted prospecting licenses by the Government of
Mozambique for two coal blocks in Tete Province, Mozambique. CIL has
also set up a wholly owned subsidiary company in the Mozambique namely
Coal India Africana Limitada (CIAL), for exploration and development of
these coal blocks and the licenses have been issued in the name of this
Mozambican subsidiary. CIAL has been operationalized through
posting/short–term deputation of a multi-disciplinary team of senior
executives/supervisors of CIL from mining, geology, finance, survey and
personnel cadre in the city of Tete in Mozambique. Exploration and
associated activities in the coal blocks have already been started.
CIL has also executed a Memorandum of Understanding (MoU) with
Provincial Government of Limpopo, South Africa for exploration and
development of coal resources in Limpopo Province located in the
northern part of South Africa.
The envisaged benefits for both Government and CIL by means of these
acquisitions are mainly for enhancing availability of coal in meeting
rapidly increasing coal demand in the country.
This information was given by the Minister of State in the Ministry of
Coal, Shri Pratik Prakashbapu Patil in a written reply in Lok sabha
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