Coal India draws Rs 20,000 crore rail infra plan to boost supplies.
- ByTejika Bajaj | December 1, 2021
Coal India Ltd. will invest an amount of Rs 20,000crore in railway infrastructure to increase its railway annual transportation capacity by an additional 330 million tonnes over the next three years as Coal India looks to target an annual production rate of one billion tonnes. This will allow quicker dispatch of emergency supplies on occurrences of fuel supply at power plants.
An amount close to Rs 7994 crore will be spent on construction of three railway lines for Central Coalfields Ltd. and Mahanadi Coalfields Ltd. mines. In addition to enhancing transportation capacity by 170 million tonnes per year, a project of Rs 11656 crore capital outlay has been drafted to be completed in a joint venture between railway PSUs and the governments of Chattisgarh, Jharkhand and Odisha to move 160 mtpa of coal. CIL holds 64% stake in the venture.
“It is important to have a robust coal transport mechanism in place to cope with increased volumes of production in the ensuing years. We are laying the groundwork for it,” a senior executive said in a statement. The Company also said that some of these invested projects are already operational and the investment will improve dispatch from the expanded capacity of existing mines.
It is expected that by 2024-25, CCL, MCL and SECL will account for about 69% of the overall coal output.
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