Mahanadi Coalfields to invest Rs 2,000 crore

Mahanadi Coalfields Limited ( MCL), the country's second largest coal producer, has lined up a capital expenditure (capex) of over Rs 2000 crore for the 11th Plan period.

In 2007-08, MCL would be investing Rs 350 crore as part its capex programme.

This includes three greenfield open cast ( OCP) ventures at Bhubaneswari, Kulda and Kaniha mines and other non mining projects pertaining to the setting up of a number silos and coal handling plants ( CHPs) for future use.

Recently MCL has undertaken a mega Rs 465 crore project for setting up railway lines for evacuation of coal from the Gopalpur - Manoharpur block through Jharsuguda, Sardega or Belpahar.

The project, jointly being implemented with Railways, is expected to be completed in the next four years.

Bhubaneswari, Kulda and Kaniha OCPs will take up an investment of Rs 1250 crores with capacities of annually producing an additional 40 million tonnes of coal from the existing 88 Million tonnes by 2011-12.

While Bhubaneswari would produce 20 million tonne at an investment of Rs 490 crore, Kulda and Kaniha's production targets are 10 million tonne each with an investment of Rs 300 crore and Rs 457 crore respectively.

In the initial stages, Bhubaneswari, Kulda and Kaniha would be producing 3 million tonne, 2 million tonne and 2.5 million tonne of coal per year.

Kaniha, being the latest venture, MCL officials pointed out that land acquisition for this project is complete and final resettlement and rehabilitation plans are being worked out with the trade unions.

Alongside, MCL plans to set up three undeground (UG) mines in the Talcher area.

The modalities to the setting up of the UG mines will be jointly worked out between Coal India Limited ( CIL) and MCL.

The move is part of CIL's plans to open UG mines across the country.

CIL authorities are concerned over the slip in UG production over the past few years from 65 million tonnes in 1974-75 to 43 million tonnes.

CIL wants to augment UG production to 75 million tonnes in the next couple of years and is therefore entering into technical tie-ups with countries like Australia, Canada, Indonesia and China.

CIL has plans of setting up 5 new UG mines across the country by 2010-11 with capacities varying between 2 to 5 million tonnes per year at individual investments of Rs 300 crore.

" We have plans of achieving 152 million tonne of coal production by the end of 11th Plan in 2011-12. MCL will produce 99 million tonne of coal during 2008-09", says S R Upadhyay, the chairman and managing director of MCL.

The company is also projected to achieve a profit before tax of Rs 2400 crore during 2007-08 from the earlier Rs 2076 crore in 2006-07.