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Coal India to infuse Rs 56,000 crore into 66 projects

Source: The Economics times, November 29, 2019

Coal IndiaNSE 0.58 % has firmed up plans to spend Rs 56,000 crore on 66 coal projects with an annual peak production capacity of 500 million tonnes.

The projects are at various stages of implementation and according to a memorandum of understanding signed between Coal India and the ministry of coal over the state-run company’s fiscal 2020 targets, almost 55% of the total capital outlay would be undertaken by South Eastern Coalfields (SECL) which is working on 23 projects with a total peak production capacity of 192 million tonnes. SECL is the largest coal producing subsidiary of Coal India, contributing almost a fourth of the total production at 157 million tonnes in 2018-19. The sanctioned capital for projects undertaken by SECL is around Rs 30,783 crore.

Mahanadi Coalfields is currently working on 11 projects with a peak production capacity of around 156 million tonnes, entailing investment of Rs 8,519 crore. It was the second largest contributor to Coal India’s production last year. Western Coalfields is working on 15 projects with a total peak rated capacity of around 35 million tonnes and would be investing Rs 5,949 crore.

Eastern Coalfields is working on four projects with a peak rated capacity of 17 million tonnes, involving a capital outlay of Rs 2,570 crore. Bharat Coking Coal has also undertaken four projects with a peak rated capacity of 18.5 million tonnes involving an outlay of Rs 2,345 crore. Central Coalfields is developing 7 projects with a peak capacity of 42 million tonnes and outlay of Rs 2,846 crore. Northern Coalfields is involved in two projects with capacity of 40 million tonnes and capital outlay of 3,038 crore.

“Coal India has advanced its targeted 1-billion-tonne production capacity achievement by two years to 2024. It intends to produce 750 million tonnes during the next fiscal, while this year the target is 660 million tonnes. In order to achieve these targets, Coal India and its subsidiaries will be required to achieve milestones for each of these 66 projects set out in the memorandum of understanding,” said a senior Coal India executive.

Recently, the ministry has asked all stakeholders, including consumers and the railways, to extend all help to Coal India to increase production. The coal ministry has also promised to lend Coal India all possible support to solve law and order issues it faces at some of its large mines. The ministry has also offered to help speed up green clearances for the expansion of mines and setting up of new mines.

News Source: The Economic Times