State-owned CIL will write to the Coal Ministry next week stating its decision to quit ICVL, a special purpose vehicle formed to acquire mines abroad, sources infrormed, reports Economic Times.
"In a week's time CIL will finalise the minutes of the board's meeting (in which the decision to exit was taken) and by next week the coal major will write a letter to the Coal Ministry intimating its decision to quit ICVL," a source close to the development said.
The source said the Coal Ministry after receiving a letter from CIL stating its decision to walk out of ICVL "will make recommendations to the Steel Ministry and seek its permission to exit ICVL."
A few days ago, a source in the Coal Ministry had said that informally CIL had said it wanted to quit ICVL, but the Coal Ministry had not received any proposal from CIL on the same, the report added.
ICVL, a joint venture between companies like SAIL, CIL, and NMDC - incorporated in 2009 - was conceptualised by the Steel Ministry for securing much-needed cooking coal and thermal coal assets in overseas territories.
SAIL and CIL each hold 28 per cent stake and RINL, NMDC and NTPC 14 per cent each in ICVL.
ICVL, which has Rs 10,000 crore authorised capital and Rs 3,500 crore equity capital, has not been able to taste any success since its formation.
The consortium aims to be an owner of about 500 million tonnes (MT) of met coal reserves by 2019-20.