Coal India to invest over Rs 1.22 trillion by 2023-24: Coal minister
State-owned Coal India Ltd (CIL) will pump in over Rs 1.22 lakh crore on projects related to coal evacuation, exploration and clean coal technologies by 2023-24, to achieve 1 billion tonnes of fuel output target, Coal Minister Pralhad Joshi said on Tuesday.
Out of the proposed spend of over 1.22 lakh crore, Coal India Ltd (CIL) has planned to invest Rs 32,696 crore on coal evacuation, Rs 25,117 crore on mine infrastructure and Rs 29,461 crore on project development by 2023-24, the minister said while addressing a stakeholders’ meet organised by the PSU through video conferencing.
He added that the state-owned company will also invest Rs 32,199 on diversification and clean coal technologies, Rs 1,495 crore on social infrastructure and Rs 1,893 crore on exploration works.
The investment of Rs 1.22 lakh crore will be utilised to fund a total of 500 projects, Joshi added.
The company is eyeing 1 billion tonnes of coal output by 2023-24, he said.
“Engagement and involvement of all concerned stakeholders in the 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,” the minister said.
The minister said avenues for business opportunities with Coal India are huge. The company would invest around Rs 14,200 crore by 2023-24, in two phases, for its 49 first-mile connectivity projects, he added.
First-mile connectivity is the transportation of coal from pitheads to dispatch points. This is being done to bring in improved efficiency in coal transport and computer-aided loading, replacing the existing road transport between the two points.
Similarly, to raise coal output and reduce import dependency of coal, CIL has identified a total of 15 greenfields (new) projects to operate through the mine developer and operator (MDO) mode. It would entail a total investment plan of about Rs 34,600 crore, of which likely investment ending 2023-24 pegged at about Rs 17,000 crore.
Evacuation infrastructure is another major area where Coal India will infuse a large amount of money into the economy.
Investments in rail logistics like developing major railways (about Rs 13,000 crore), railway sidings (about Rs 3,100 crore) and procurement of own wagons (Rs 675 crore) would total up to over Rs 16,500 crore by 2023-24.
“Coal India and its subsidiaries are engaged in procurement of various types of goods, works and services amounting to approximately Rs 30,000 crore per year. This is where the role and importance of stakeholder step in,” the minister said.
Coal Secretary Anil Kumar Jain, CIL Chairman and Managing Director Pramod Agarwal, and other senior officials from the coal ministry and the company attended the meet.