An Indian company is seeking to take over two Australian coal companies in a deal reportedly worth over $4 billion.

According to a report in the Economic Times, Coal India (CIL) is considering the move, which would give them access to 28 million tonnes of high quality thermal coal per year. A senior official of India’s coal ministry said the resource giant was looking to acquire the two companies for $2 billion each, according to the company’s foreign acquisition committee. 

"After the committee's clearance, the proposals will be forwarded to the board and CIL will be ready to take them over. The entire process is likely to take at least three months because CIL will conduct a due diligence through its merchant bankers on the assets to make sure the return on investment is in stipulation with the government norms," said the official.

When it floated an expression of interest for acquisitions earlier in the year, CIL reportedly received 32 proposals from around the world. A possible reason for the acquisition is highlighted in a recent report, stating that "India has seen its coal import demands increase annually due to inefficient domestic production.”