World's largest coal producer, Coal India ltd is said to have shortlisted 12 players for its proposal to source dry fuel. This is being done so that the domestic demand for the same is met.

One of the main players in the list is US-based Peabody Energy. Talking to PTI, a person close to development said that the CIL had floated the second round of expression of interest. After this round is over, it is thinking of starting the final bids for the final agreement.

The source also said that the off take agreement is part of the three-point strategic initiative which CIL is looking into to start global alliances. But besides the venture, CIL is also going to invest in the joint venture.

Rest of the companies are from US, Indonesia and Australia.

The major criteria for deciding upon the company, is that the company should be able to look at the total worth which will be no less than 2 million. For the Indonesian firms, the level is 1 million ton, and will be in coal production area.

Currently, the demand supply gap in coal is 80 million tons.