India: CIL to invest over INR 1.22 lakh crores on various projects by FY’24

In order to achieve the long-term coal production target of 1 billion tonnes by FY ’24, Coal India Ltd (CIL) will invest over INR 1.22 lakh crores on about 500 projects related to its coal business. The information was provided by Union Minister of Coal and Mines, Mr. Pralhad Joshi while addressing stakeholders meet organized by CIL.

“Engagement and involvement of all concerned stakeholders in company’s affairs will reduce and uncover the project risks. Such two-way interactions help pave way for mutually beneficial newer ideas, improvement areas and project related expectations.” said Mr. Joshi during the interaction.

Out of the proposed capital expenditure, majority of the sum has been planned for investment on coal evacuation, mine infrastructure, project development, and clean coal technologies, while remaining amount would be spent on social infrastructure and exploration works by FY ’24.

Distribution of proposed capital

Capital Sum in INR Crores

Addressing to the stakeholders, the minister said that avenues for business opportunities with CIL were huge.

Highlighting the investments to be made to facilitate coal transportation, Mr. Joshi emphasized that evacuation infrastructure is a major area where CIL would be infusing large sums of money into economy.

The company would be investing around INR 14,200 crores by FY ’24, in two phases for its 49 First Mile Connectivity projects, which aims at hassle-free coal transportation from pitheads to dispatch points aided by computerized loading in place of existing road transport between the two points.

Besides, investments in rail logistics like developing major railways (about INR 13,000 crores) railway sidings (about INR 3,100 crores) and procurement of own wagons (INR 675 crores) would envisage a total sum over INR 16,500 crores by FY ’24.

Similarly, in a transformative plan to increase coal output and reduce import dependency of coal in the ensuing years, the company has identified a total of 15 green-field projects to operate through MDO mode that would entail a total investment plan of about INR 34,600 crores of which likely investment ending FY ’24 is about INR 17,000 crores.

Company’s capital expenditure for FY ’21 has been set at INR 10,000 crores. Overall capital expenditure during FY ’20 was INR 6269.65 crores as against INR 7311.46 crores in previous year.