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Acquiring Coal Asset Abroad by CIL: Is it a Strategic Move?

News:

Coal India Ltd is known to be nurturing ambitions of owning coking coal mines in South Africa. However, in view of prevailing low international coal prices, it may be prudent for India to keep importing coal to meet domestic demand, rather than buying assets abroad, analysts say.
Source: Hindustan Times

SNP Insights:

Acquiring coking coal asset abroad by CIL is seem to be strategic move as to grow country's GDP by 8-9%, steel sector should grow by 10-12% which solely depend on coking coal. Apart from this CIL being cash rich company, investing money in this international coal downturn market would help in smooth acquisition and may shoot up the valuation of the company in a long run.
Source: SNP Infra Research