International Coal Ventures, a special purpose vehicle formed by National Thermal Power Corporation, Steel Authority of India Ltd, Rashtriya Ispat Nigam Ltd, National Marine Dredging Company and Coal India, will be registered as a company, with an authorised capital of Rs3,500 crore.

The five public sector majors on Tuesday signed an agreement to form a joint venture (JV) agreement and decided to incorporate the special purpose vehicle as a company.

While SAIL and Coal India would initially contribute Rs1,000 crore each to the authorised capital of the company, the other three partners would contribute Rs500 crore each.

The new company formed by five large public sector units for scouting coal properties abroad, will also have a war chest of about Rs10,000 crore for acquisitions.

Its registered office will be located in the National Capital Region of Delhi and the authorised capital will be increased from time to time depending on the needs of the joint venture.

ICVL has originally been floated in 2007 to look out for acquisition of overseas mining stakes, amidst an imminent coal shortage of around 200 million tonnes by the end of the 11th Plan,

Although ICVL was set up with special focus on Indonesia, Mozambique, New Zealand and Africa, the company status would now help it conclude coal mine acquisition deals in Canada, Mozambique and Australia.

The new company would have more powers than a `Navaratna' company, with a mandate to clear investment proposals of up to Rs150 crore at the board level itself - a Navaratna company currently can clear investments up to Rs100 crore.

IVCL would also be able to make coal mine acquisitions in Canada, Mozambique and Australia.