Coal India to invest Rs 91,000 crore by 2025-26

5 May 2023 , 08:07 AM

By 2025–2026, the nation’s largest coal producer, Coal India Ltd (CIL), will invest Rs 91,000 crore in a number of initiatives, including mine development and diversification, according to P M Prasad, chairman and managing director of CIL’s Central Coalfields Ltd (CCL). 

P M Prasad was suggested by the Public Enterprises Selection Board (PESB) on Wednesday for the position of Chairman and Managing Director (CMD) of Coal India.

‘A combined total of Rs91,000 crore will be invested on diversification and other projects… These will be pumped in until 2025 or 2026,’ Prasad said in an interview with PTI after being chosen to lead the coal juggernaut.

He said that Rs 36,000 crore will be used for coal gasification projects, while Rs 46,000 crore would go towards contracts with mining developers and operators (MDOs) and other things. The leftover funds will be used for a variety of different initiatives.

For implementation through the MDO mode, CIL has already identified 15 greenfield projects with a combined project-rated capacity (PRC) of 168.58 million tonnes (MT) annually.

Nine of these 15 projects have received Letters of Award and will be carried out by MDOs. A total of 127 MT of production can be produced by these nine projects.

Six further mining projects are in various stages of development. Of the 15 projects, four are underground mines and eleven are opencast.

Prasad stated regarding plans for diversification that ‘three tenders have already been done for coal gasification project.’

Given the abundance of coal in the nation, the Centre has made the decision to heavily promote coal gasification, which can produce a variety of energy, chemical, and petro-chemical products—the majority of which are currently imported.

CIL has agreements with BHEL, GAIL, and IOCL to establish four coal gasification projects, one lignite gasification project, and to develop domestic gasification technology.

Prasad continued, ‘We are diversifying by installing solar on rooftops as well as on ground. Then, in addition to power plants, diversification will include bauxite mines, aluminum smelters, etc.

With 2,48,550 employees, CIL is one of the greatest corporate employers and the world’s largest producer of coal. In 84 mining areas spread across eight (8) Indian states, it operates through its subsidiaries. As of April 1, 2022, it has 318 mines, of which 141 were underground, 158 were opencast, and 19 were mixed mines.

The Coal Ministry has established an ambitious strategy for 2023–2024 that addresses a number of topics, including a goal of 1012 MT for total coal output.

For feedback and suggestions, write to us at [e-mail]