CIL Banks on 25 Key Projects to Double Production by 2020

Kolkata:
Most of these projects await land & green approvals & are yet to put in place evacuation system for coal
Coal India’s plan to double production to almost 1 billion tonnes by 2020 hinges precariously on the successful completion of 25 key projects that are meant to deliver half the targeted output. For most of these projects, land is yet to be acquired, environmental approvals have to be obtained and transportation of coal by rail, known as evacuation, has to be arranged.“While environment clearance for all of these projects may be a certainty -either on time or delayed -evacuation could be an issue at regions,“ a senior Coal India official said on condition of anonymity . “The coal projects can be taken up provided the evacuation system is in place at these locations.“

To speed up the rail links, the gov ernment is forming special purpose vehicles in which Coal India is likely to hold the majority stake, followed by the Indian Railways and the respective state governments. The SPVs will set up three rail lines that will have the capacity to carry 300 million tonnes of coal from areas that are now logistically constrained. The estimated investment in these projects is about . 8,000 crore. A tripartite memoran` dum of understanding has been signed for the 93-km Tori-ShivpurKathautia railway line. Coal India will hold a 64% in this venture, the Indian Railways 26% and the Jharkhand government 10%.

The second project is a 52-km Jharsuguda-Barpalli track in Odisha. The third project is a 450 km stretch in Mand-Raigarh coalfields in Chhattisgarh.

Coal India officials agreed there is a “concentration of risk“ in the production expansion plan, with some 463 million tonnes to come from 25 of the 152 projects to be developed by 2020.

The projects that have been planned are mostly opencast mines. Coal India is trying to reduce the risk by increasing production from underground mines, which currently contribute about 10% of output, which was 494.24 million tonnes in 2014-15. However, underground mining is an issue because producing from deeper seams is costlier, the official said.

Source: The Economic Times

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Author:

Neeraj; an entrepreneur & a visionary in the field of Railway, Defense & Automobiles, is a graduate in commerce and a Harvard Business School Alumni. He’s an expert in govt. liasoning & contracting and has an exceptional network & connections at both local as well as global level. He’s an expert in Market Strategy & Planning and has served number of overseas companies as an advisor/consultant. He takes a profound interest in upcoming startups & is very receptive towards ground-breaking ideas & innovations. He likes to brainstorm those ideas and if the values & philosophies matches; he is even ready to invest his resources, serve as a mentor or act as an incubator to futuristic businesses.

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