THE Ruia-family owned Essar Group is negotiating to buy USbased Trinity Coal for about $600 million as it follows the Tatas and Adanis in ringfencing raw material supplies for cost-effective production of steel and power to feed the worlds second fastest-growing major economy.

The attempt also signals the emergence of the overseas takeover frenzy in India witnessed before the credit crisis in 2008,with Bharti Airtel looking to buy Zains African assets,Shree Renuka Sugars purchase of Brazils Grupo Equipav for Rs 1,500 crore,and Reliance Industries attempt to buy bankrupt petrochemical maker LyondellBasell.

If the deal with Trinity happens,it would add 200 million tonnes of coal reservesenough to produce at least 100 million tonnes of steel,two people familiar with the matter said.Essar is doubling steel capacity to 14 million tonnes.

An Essar spokesman confirmed the negotiations,but did not elaborate.Denham Capital,the owners of Trinity,could not be reached for a comment.However,the negotiations led by Essars mergers and acquisitions head,Rajiv Saxena,need not necessarily lead to a deal.

Indian companies are back in the hunt for global assets that appear relatively inexpensive compared to their pre-crisis peaks.The limping back of financial markets to near-normal levels with sufficient funding is boosting Indian entrepreneurs quest for global resources and technology.