Coal India Ltd. (CIL) has firmed up plans to spend $7.9 billion on 66 coal projects with an annual peak production capacity of 500 million metric tons (mt). The projects are at various stages of implementation and according to a memorandum of understanding signed between CIL and the ministry of coal over the state-run company’s fiscal 2020 targets.
An official said, “CIL has advanced its targeted 1-billion-mt production capacity achievement by two years to 2024. It intends to produce 750 million mt during the next fiscal, while this year the target is 660 million mt. To achieve these targets, CIL and its subsidiaries will be required to achieve milestones for each of these 66 projects set out in the memorandum of understanding.”
Almost 55% of the total capital outlay would be undertaken by South Eastern Coalfields, which is working on 23 projects with a total peak production capacity contributing almost a fourth of the total production at 157 million mt in 2018-2019. The sanctioned capital for projects undertaken by SECL is around $4.3 billion.
Mahanadi Coalfields is currently working on 11 projects with a peak production capacity of around 156 million mt, entailing investment $1.2 billion.
Western Coalfields is working on 15 projects with a total peak rated capacity of around 35 million mt and would be investing $840 million.
Eastern Coalfields is working on four projects with a capacity of 17 million mt and a capital outlay of $360 million.
Bharat Coking Coal has also undertaken four projects with a capacity of 18.5 million mt and an outlay of $330 million.