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Coal India to invest Rs 18,000 cr

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BS Reporter Bhubaneswar
Last Updated : Jan 20 2013 | 9:08 PM IST

Some of these projects will be shortly be placed before the Union cabinet for approval. Union minister of state for coal Santosh Bagrodia recently pointed out in Hyderabad that some new mining projects of CIL will shortly be placed for cabinet approval.

Added to the fresh 119 mining projects are another  6 projects pending with the government from the 10th Plan period taking the total to 125 projects.The projects will have to approved at the government, CIL board and company board levels.

CIL director (technical) N C Jha said, " Of the total 125 projects that CIL proposes to take up during the 11th and 12th Plan, 27 projects have already been approved at different levels and there are some which are yet  to be formulated and worked out for final approvals".

CIL plans to raise production to 520.5 million tonnes by the end of the 11th Plan. In 12th Plan period it has projected a target production of 664 million tonnes.

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The break up to projected production in the 11th plan is 186 million tonnes from existing mines and completed project, 165 million tonnes from ongoing projects and 169 million tonnes for new projects. Similary during the 12th Plan, 151 million tonnes, 182 million tonnes and 321 million tonnes will come from the existing, ongoing and new projects.

The new projects of CIL mostly include development of underground mines ( UG ) mines. CIL has focussed on increasing production in the UG category from the existing 43 million tonnes to 75 million tonnes in the next couple of years. UG production of CIL slid from 65 million tonnes in 1974-75 to 43 million tonnes during the current period.

Coal India authorities plan to invest a sizeable chunk of their in developing UG mines with capacities of 2-5 million tonnes. For the purpose, CIL has also planned to enter into strategic ventures with countries having global expertise in UG mines like Australia, USA, China, Indonesia and Mozambique.

Around Rs 300 crore will be invested by the public sector coal behemoth for setting up fresh UG mines. In the first phase about Rs 1500 crore will be invested for putting up 5 UG mines.

CIL has 318 UG mines across the country, of which 80 percent are loss making and accounts for a net loss of Rs 3084 crore. A few days ago CIL decided to close down 60 UG mines rendered unremunerative, non-returnable and loss making. These mines account for Rs 1000 crore annual loss for CIL and is spread out mostly in the coalfields of ECL, CCL and BCCL, the one time loss making subsidiaries of CIL but have been able to turn around in the last couple of years.


 

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First Published: May 19 2008 | 5:10 PM IST

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