Public sector Coal India Ltd is establishing two thermal power plants of 800 MW each at Sundergarh in Odisha at an estimated cost of Rs.11,363 crore. An initial investment of Rs.1,019 crore has been approved by the company to start the construction. The project will be set up by Mahanadi Coalfields Ltd, a wholly owned subsidiary of CIL.
CIL has proposed to invest Rs.6,000 crore in 2015-16 as capital expenditure and aims to achieve one billion tonne production target.
Coal India Ltd, the Maharatna coal mining monolith, has unveiled its roadmap to produce one billion tonnes of coal by 2019-20. With India’s projected coal demand hovering around 1,200 million tonnes by 2019-20, at an envisaged growth rate of 7 per cent, CIL is expected to chip in with one billion tonnes of which 908 million tonnes is the expected contribution from the identified projects. This was stated by S. Bhattacharya, Chairman and Managing Director, Coal India Ltd, while briefing newspersons recently.
Bhattacharya said that the process of identifying projects to share the balance quantity, to top up the one-billion mark, was underway. Two CIL subsidiaries, Sambalpur-based Mahanadi Coalfields Ltd and Bilaspur-based South Eastern Coalfields Ltd, were expected to play a pivotal role in CIL’s quest of attaining its production target with 250 million tonnes and 240 million tonnes, respectively.
According to Bhattacharya, the key issues that the coal miner is basically relying on were timely completion of three critical railway lines and timely land acquisition and green clearances.