Coal India's exploration arm to invest Rs 108 cr in expansion

Written by Agencies | New Delhi | Updated: Sep 30 2009, 20:38pm hrs
CMPDIL, a subsidiary of country's largest coal producer Coal India Ltd, will invest over Rs 100 crore for acquiring advanced drilling equipment in the next two years.

With this the mini-ratna aims to increase its annual exploration capacity to 10 lakh meters by 2010 from the present 2 lakh metres.

"We have lined up an investment of Rs 108 crore for acquiring 18 new generation hydrostatic rigs from Sweden to replace old manual rigs. We have already received two such advanced machines," CMPDI CMD A K Singh said.

The coal ministry has got customs duty on import of such equipment reduced to 3 per cent from 7-10 per cent earlier.

The investments are in line with the Coal India Ltd's strategy to prove about 161 billion tonnes of coal reserves out of the estimated reserves of 267 billion tonnes in the country. Coal India targets to mine about 435 million tonnes of coal in the current fiscal.

"Central Mine Planning and Design Institute Ltd (CMPDIL) is planning a major revamp of its exploration activity...We plan to enhance annual drilling capacity to one million meters per annum," CIL Chairman Partha S Bhattacharyya said.

The company does exploration up to 300 metres and is planning to take it up to 600 meters, he added.