State owned Coal India (CIL) would invest an additional Rs 47,300 crore to produce 193 million tonnes 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 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. This is the first time such a high sanction of investment has been made in one go during a single financial year.
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.