ICVL set for a rejig
New Delhi: International Coal Ventures (ICVL) is set for a restructuring following NTPC and Coal India's intent to exit from the consortium, but existing members would prefer sharing stakes among themselves than inducting a new partner.
"NTPC did communicate that they want to exit. However, we have not heard anything from CIL. Let them make up their mind, then we will decide," ICVL Chairman C S Verma told reporters here.
However, in the event CIL also intends to exit, he said, the Board of the special purpose vehicle has to take a call on restructuring of its shareholding.
When asked does that indicate ICVL would induct a new partner, Verma said in the negative, instead, CIL and NTPC's stakes would be given to other existing shareholders.
Last year, NTPC had opted out of the venture as ICVL's focus was more on to secure coking coal to meet requirements of steel makers than on thermal coal for generating power.
CIL Board has also recently agreed to walk out of ICVL as it felt that it was not advantageous for the company to be a part of the consortium since it only involves financial burden without commensurate advantage.
ICVL was incorporated in 2009 as a joint venture between SAIL, RINL, CIL, NMDC and NTPC with the mandate of securing overseas coking coal and thermal coal assets.
SAIL and CIL each hold 28 percent stake, and RINL, NMDC and NTPC hold 14 percent each in ICVL. It aimed to own 500 million tonnes of coal reserves by fiscal 2019-2020.
Despite enjoying the status of a 'Navaratna' firm without having formal Navaratna status, ICVL has failed to make a mark since its inception in 2009. On a couple of occasions, it had to retreat from plans to acquire an overseas asset after discords crept in and consensus took longer than expected.