State-run Coal India has put the plans to acquire foreign assets on the back burner and has reportedly discontinued talks with foreign majors in light of coal ministry’s directive of adhering to a 12% internal rate of return (IRR) for all investments undertaken to acquire overseas assets. Consequential to this development, the coal mines and assets that were offered to Coal India are now being offered to other international players for possible takeover.
Peabody Energy and Sinar Mas - two potential targets of the company, are now offering their assets to other foreign companies. Similarly, Massey Energy, which was also reported to be in negotiations with Coal India, sold its assets to Alpha Natural Resources early this year.
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