- What is ICVL?
- Why was ICVL formed?
- What’s ICVL’s problem?
- Why no acquisition of coal mines abroad?
- Coal India’s 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. |
What’s ICVL’s problem?
- 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 can’t dig enough coal from India, on the other hand, you are not acquiring enough coal from abroad. What will happen?
- WPI will increase
- IIP will decrease
- GDP will decrease.
- 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 India’s 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
- Rashtriya Ispat Nigam Ltd (RINL)
- National Thermal Power Corporation
- Coal India Limited (CIL)
|
- 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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Thanks for this beautiful article.
i have one suggestion for you, can you make the pdf of all the article publised in here month wise, so it becomes easy for refence.
can you please write about the recent case of judges writing to president for pardoning 13 convicts??
the frontline article doesnot explain why they were convicted and what benchmark was formulated in bachan case ???
Hello !
beatiful site….. can we get everything i mean all articles in one pdf file in view of time shortage for mains……… i came to know about ur website today only….
thanks
>>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.
Also, by the way :), most of India’s coal is lignite and cannot be used for coking/in steel production in any case. So, steel companies and others who require high grade coal still need to import. Of course, the cause of higher power production will still get a boost if we mine coal locally.
Ref: http://en.wikipedia.org/wiki/Coal#Types
@ swagat
for kind your information most of india coal is Anthracite also known as hard coal which the highest rank of coal and it reserves in india about 246 billion tonnes, of which 92 billion tonnes are proven and hard coal spread over eastern and south central parts of india and these area are affected by Naxalite
now lignite is the lowest rank of coal and it reserves in india about 36 billion tonnes, of which 90 % occur in the southern State of Tamil Nadu.
Hi mrunal..
Recently I heard about the statement of UPA-II officials that the‘Opposition-ruled States opposed competitive bidding’.
Could you elaborate this more and WHY??
Hi mrunal???
” Venture capital panel for easing investment norms ”
At
http://www.thehindu.com/business/Economy/article3828610.ece
Could you pl make it understandable…..
Venture capitalist/ Angel investor, already explained in this article:
https://mrunalmanage.wpcomstaging.com/2012/03/econ-debt-equity.html
that Hindu article’s crux= Now Government now wants to encourage more venture capitalists to come in India, by easing various rules for them.
Thanks a lot for sharing Mrunal. The answer is d. All of the above hopefully.
In light of recent commitment by CIL under Fuel Supply agreement, it will be responsible top supply fuel to power plants. My question is if mining coal due to above mentioned reasons is difficult in India, why is CIL contemplating exit from ICVL instead of trying to acquire more under the provisions permitted?
excellent sir ! plz provide detail article on those topics which are likely to come in cse 2012(mains)! thank u sir.
hey, murnal i just started following your blog.it is extraordinary yaar.blogs are so interesting,because of the way u explain is mind blowing yaar.keep it up bro!!god bless you.
difference between JV and subsidiary???
Mrunal,
Looking forward for u to post an article about coal scam.
what is the difference between joint venture and collaboration companies
sir wil u pls explain me about mini ratna,nava ratna,maha ratna