CIL to invest Rs 47,000 cr to enhance productivity

By: |
March 9, 2021 2:10 AM

While a chunk of the investment earmarked will go in expanding the existing 24 projects, there will be fresh investments made in 8 new projects. All the 32 projects together will have a peak capacity to produce 496.5 MTPA.

coal india limitedOf the 193 MTPA, three CIL subsidiaries namely South Eastern Coalfields (SECL), Central Coalfields (CCL) and Mahanadi Coalfields (MCL) will produce an aggregate 167 MTPA to form the bulk at 86.5%.

State owned Coal India (CIL) will invest an additional Rs 47,300 crore to produce 193 million tonne per annum (MTPA) above its sanctioned capacity of producing 303.5 MTPA from 24 existing projects.

While a chunk of the investment earmarked will go in expanding the existing 24 projects, there will be fresh investments made in 8 new projects. All the 32 projects together will have a peak capacity to produce 496.5 MTPA. But this capacity would be reached over the years with CIL assessing to produce 81 MTPA by 2024 of its targeted 193 MTPA. ” The production will move up gradually beyond 2024,” a CIL executive said.

The company has already sanctioned in excess of Rs 55,000 crore to produce 303.5 MTPA from its 24 existing projects. The boards of CIL and its subsidiaries approval to invest another Rs 47,300 crore will take the total investment to above Rs 1.023 lakh crore for enhancing productivity giving a big push to import substitution.
While Rs 55,000 crore have been sanctioned over the years, the sanction of Rs 47,300 crore has been made at one go. “Such high number, either in terms of projects or capacity addition, has not been cleared in a single financial year so far,” the company executive said.

Of the 193 MTPA, three CIL subsidiaries namely South Eastern Coalfields (SECL), Central Coalfields (CCL) and Mahanadi Coalfields (MCL) will produce an aggregate 167 MTPA to form the bulk at 86.5%.

SECL, with 6 projects at an estimated incremental investment of Rs 18,657 crore, accounts for 63.5 MTPA, followed by CCL at an investment of Rs 7,520 crore for 10 projects of 56.6 MTPA. MCL, with 3 projects, would add up to 47 MTPA at an investment of Rs 14,057 crore. The rest, nearly 26 MTPA, would be met through ECL, NCL and WCL with the remaining investment distributed between them.

“Concurrently, in tandem with production the company is also strengthening the rail evacuation infrastructure through setting up rail lines, sidings and first mile connectivity projects in the companies from where the majority of the output is expected”, a CIL official said.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1At 5.56%, FY21 credit growth at 59-year low: SBI Research
2RBI restricts American Express, Diners Club from on-boarding new customers from May 1 — here’s why
3RBI extends temporary advances limit of Rs 51,560 crore for states, UTs till September