1. Coal India expects to surpass FY 16 projected capex

Coal India expects to surpass FY 16 projected capex

Coal India (CIL) expects to surpass its projected capital expenditure of Rs 5,990 crore for 2015-16 on...

By: | New Delhi | Updated: February 1, 2015 2:35 AM
Coal India, Coal India capital expenditure, Coal India rail linkage projects, Coal India news

Coal India (CIL) expects to surpass its projected capital expenditure of Rs 5,990 crore for 2015-16. (PTI)

Coal India (CIL) expects to surpass its projected capital expenditure of R5,990 crore for 2015-16 on account of rail linkage projects, which could include purchase of rakes by the company and other infrastructure development.

It is estimated that CIL would be able to triple its production from mines in Jharkhand, Odisha and Chattisgarh if rail linkages support its evacuation, as the company cannot produce a self-combustible product beyond a level and pile up ground stock. CIL’s capex target for FY16 is nearly 20% more than the current fiscal target.

“We are in active dialogue with Railways for rail linkage issues and are also planning other infrastructure development, which might witness considerable increase in our overall capex for 2015-16,” CIL chairman and managing director Sutirtha Bhattacharya told FE.

On the need for employing upgraded technology to enhance production, Bhattacharya said the company was constantly improving the deployed technology, adding that technology enhancement and use of high capacity equipment was a feature at CIL’s mines.

Bhattacharya, who actively negotiated with the workers’ union to end the strike earlier this month, said a company of the magnitude of CIL was bound to have certain industrial relation issues and when they crop up it would sort them out in a cordial manner.

“I do not foresee any disconnect with the unions as they are also well aware of the importance of Coal India’s role in supplying the prime energy fuel to the country and act responsibly,” he added.

Tags: Coal India
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