CIL to spend Rs 24,500 cr on capex,plans Rs 14,500 cr on rail

The state-run company which accounts for over 80 per cent of the domestic coal production also plans to set up 22 new washeries. It is also eyeing acquisition of assets abroad.

Rao said apart from this,the PSU planned to undertake a conditional investment of Rs 14,500 crore on augmenting rail infrastructure.

“We plan to spend Rs 7,500 crore on rail infrastructure provided the Railways complete the project on time. We intend to spend another Rs 7,000 crore on rail projects for faster transportation of coal if all goes well,” Rao said after attending the review meeting of the PSU,chaired by Coal Minister Sriprakash Jaiswal.

Earlier,Rao met Finance Minister P Chidambaram along with heads of nine infrastructure sector PSUs,who committed to step up investments.

Rao said CIL was making all attempts to boost production and was hopeful of meeting the production target of 464 million tonnes (MT) for the current fiscal.

He added that the Coal Minister,who chaired the review meeting,has exuded confidence that the PSU would meet the target.

The cash-rich company would not require to raise any funds for financing the proposed capex,which would be funded entirely through internal accruals.

The company is facing less production on account of delays in statutory clearances in its projects besides problems like land acquisition and law and order issues.

Meanwhile,the government has already announced that it has identified 116 mines to be given to Coal India.

CIL had recorded about 432 million tonne (MT) production in 2011-12,as against a revised down target of 447 MT and has set a production target of 464 MT for the current fiscal.

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