Published On:May 27 2024
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India to Inject Equity into KABIL for Overseas Mineral Acquisition Initiative

India plans to inject additional equity into Khanij Bidesh India Ltd (KABIL) to enhance its acquisition of overseas mineral resources, focusing on critical minerals like lithium and copper. This initiative aims to boost KABIL’s paid-up capital to ₹500 crore, five times its current level.

KABIL, a joint venture of three Central Public Sector Enterprises (CPSEs) under the Mines Ministry, comprises National Aluminium Company (NALCO) with 40% equity, Hindustan Copper (HCL) with 30%, and Mineral Exploration Corporation Ltd (MECL) with 30%. Initially, KABIL had an authorised capital of ₹500 crore and a paid-up capital of ₹100 crore from these promoters.

Officials indicate that KABIL will lead the charge in acquiring critical minerals overseas, which could involve substantial investments. Some potential acquisitions, particularly in countries like Australia, are expected to be more costly than previous ones, such as those in Argentina.

“We have asked KABIL to prepare a report and present their funding requirements to the Ministry,” an official stated. The additional equity investment could come from the promoters, with current clearances allowing an increase in paid-up capital up to ₹200 crore.

The authorised capital of ₹500 crore can also be increased if necessary, as acquisition plans progress. Other funding options will be explored as needed, according to the official.

Authorised capital represents the maximum amount a company can raise through share sales, while paid-up capital is the actual amount received from share sales. Paid-up capital cannot exceed authorised capital, and any change in authorised capital requires shareholder approval.

HBL





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