Most steel producers in India depend on overseas coal and have been looking to acquire mines in Africa and Europe.

India's demand for steel-making coal is expected to triple by 2020, with about 90% of that coming from abroad.

JSW Steel, the third-largest steel producer in India, has already purchased mines throughout the US, while other major companies have bought up mines in Australia.

ICVL, whose five participating firms are all state-owned or controlled, has been scouting for mines since 2009. It requires a mine that produces at least 50 million tonnes per year.

“We're doing due diligence in three to four geographies such as Indonesia, Mozambique and the United States," said ICVL chief executive Ajay Mathur.

Mozambique is logistically quite well suited for India, Mathur told reporters at a conference in the state of Goa.

ICVL also reported it was close to sealing a deal in Poland.

SAIL is expected to raise coal imports by 6million tonnes to 18MT in the next two and a half years as it boosts steelmaking capacity to 24MT from 17.5MT

Mathur said the group was interested in joint ventures with private firms that had already acquired assets overseas.

"We are keen on an equity stake in Indian companies' mines overseas," he said, adding though that ICVL had not yet approached any company.