Indian state-owned mining company Coal India (CIL) is planning to acquire two Australian firms for nearly INR230bn ($4bn).

The proposed move is likely to allow the company to import about 28 million tons of high quality thermal coal annually.

The company has already submitted proposals to its foreign acquisition committee to buy majority interest in two undisclosed Australian companies for about $2bn in each, The Economic Times reported, citing undisclosed official from coal ministry.

Following the committee’s approval, the proposals will be sent to the board and then CIL will be ready to take them over. The overall process is expected to take about three months.

CIL will carry out a due diligence on the assets with the help of its merchant bankers in order to make sure the return on investment is in line with the government rules, the official said.