BS reported that almost an year after JSW Steel said that its Mozambique coal block would be valued and sold to another group company, JSW Energy, the move is nowhere in sight, and the block lies unused, with an estimated cost of INR 300 crore.

Mr Sajjan Jindal vice CMD of the JSW Group during the initial public offering of JSW Energy last year had said 80% of the coal in the Mozambique block had turned out to be thermal, not coking, coal and therefore, the asset would be valued and transferred to JSW Energy for its power plans in India.

However, over a year has passed since the listing of JSW Energy on the Indian bourses but the process to transfer the asset to the company hasn't been initiated.

Mr Pramod Menon chief financial officer of JSW Energy told Business Standard it is unlikely the two companies would take up the asset sale anytime soon.

Mr Menon said that “There was talk during the IPO time with respect to looking at the mine, but, as of today, it is an asset of JSW Steel. At this point in time, there is nothing happening on that front.

On what was said during the IPO, Mr Menon said that “That is so, but the boards of both the companies have to decide. It hasn’t happened till now because the proposal at the board level hasn’t been made. As and when it is opportune, we will look at it.”

(Sourced from Business standard)