)
Coal India (CIL), the government-owned near-monopoly producer, will invest $20-25 billion (Rs 1.3-1.6 lakh crore) in the next five years, to achieve annual output of a billion tonnes by 2019-20.
This rising production, said Union coal and energy minister Piyush Goyal, would “substitute for imports of thermal coal in the next two and a half years. We will continue to import high-grade coking coal, mainly used for steel production”.
CIL’s output was 494.2 million tonnes in 2014-15, about three per cent lower than the target of 507 mt, though 32 mt more than in 2013-14. The minister noted the rise was only 31 mt in the entire period from 2011 to 2013. “And, our growth has been 11.1 per cent in 43 days of the current (financial) year,” he said.
According to online trade platform mjunction, India’s coal imports jumped 33.5 per cent in 2014-15 to 242.4 million tonnes compared with 181.6 mt in 2013-14.
Goyal said the CIL investment would be on better technology and facilities in the mines. A part will also go for equity funding in infrastructure projects being developed for coal evacuation. “We have already identified the big picture and now we have done mine by mine planning to reach the target of one billion tonnes by 2019-20,” he said.
Analysts had earlier expressed reservation over the ambitious target, saying the infrastructure shortage in extracting coal would be a huge impediment.
Goyal said he was optimistic, as timely completion of railway lines, hastening the process of land acquisition and environmental clearance would help CIl reach the target. “We have identified 51 infrastructure projects where the ministry is ready to put in money as part of a joint venture with the railways,” he said, adding 70 new mines in the public sector, 30 state government-owned mines and 70-80 from private entities would ensure the targeted production.
