CIL to spend 30,000 cr on expansion during 12th Plan

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CIL to spend 30,000 cr on expansion
State-run mining giant, Coal India Limited that contributes to nearly 82% of domestic coal production has planned to invest as much as Rs 30,000 crore, during the 12th Five Year plan (2012-2017), in order to expand its production capacity and strengthen its establishment.

The company has identified a total of 142 new projects in which the investments would be utilized. However, 168 projects are still waiting to get the approvals. Besides, some amount of the investment would also be spent on washeries, machinery and equipment. The company is likely to fund the entire capex through internal accruals.

Starting with the initial investment, the company has decided to utilize Rs 1,000 crore as capital expenditure. Further out of this amount, Rs 6,000 crore would be targeted towards the acquisitions and Rs 4,220 crore for developing different projects.

"We are in the process of earmarking about Rs 30,000 crore for capacity expansion during the 12th Five-Year Plan (2012-17) period," commented Coal India Chairman and Managing Director N C Jha. "Our 168 projects that include ongoing schemes too are awaiting various environment and forestry clearances and are pending for long," Jha added.

With an aim to increase its capacity over the next five year, a production target of 452 MT for the current fiscal has been set by the company. Further, 107 open cast and 35 underground mining schemes, out of the 142 identified new projects, are also planned to add an ultimate capacity of 380.22 MT in the 12th plan.

The company, for 2010-2011, had recorded a production capacity of 431 MT in 2010-11. Meanwhile currently the company is operating 17 coal washeries with a total capacity of 39.40 million tonnes per annum. Out of the total 17, 11 are coking coal and the remaining are non-coking coal washeries. Therefore, with plans to set up 20 new coal washeries with a combined capacity of 111.1 MT, the company expects to increase its production capacity to 556 million tonnes (MT) by 2016-17.

Read more about: coal india, bse, nse, commodities
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