The Aditya Birla Group, an Indian telecom-to-cement conglomerate, wants to foray into the U.S. coal industry, currently negotiating with thermal coal miner Drummond Company for a significant number of stakes in Colombian-owned mines for a total of $1 billion.

The Kumar Mangalam Birla-promoted group specifically wants to purchase some 20 per cent to 40 per cent of coal mine rights of Drummond Company to support expansion plans as well as for exclusive use of its power plants in India that make aluminum in India.

Moreover, "the ownership will also help the group hedge itself against price volatility in the global coal market," the Financial Express reported, quoting an unidentified source who has "direct knowledge of the development."

Indian power producers, faced with a dearth of resources and supplies, are forced to purchase stakes in coal mines abroad to arrest the massive supply shortage in the country.

On the case of the Aditya Birla Group, experts and analysts do not see the company having funding difficulties since 60 per cent of its revenue already come from overseas operations.

Thermal coal is needed to support the requirements of the group's flagship Hindalco Industries, the country's top aluminum producer and UltraTech cement, the country's largest cement producer.

Earlier, the Aditya Birla Group has been reported eyeing a stake in Australia-based coal company New Hope. New Hope is valued at an estimated $5.2 billion.