Coal India Ltd. plans to invest over Rs 1.22 lakh crore

Coal India Ltd (CIL) recently decided to invest over 1.22 lakh crore rupees on development of nearly 500 projects. It includes coal evacuation, infrastructure, project development, exploration and clean coal technologies in the country. The investment aims at making India self-reliant in terms of coal and achieve the production target of 1 billion tonnes by 2023-2024.

Investment plan

Out of the proposed spend of over ₹1.22 lakh crore, ₹32,696 crore will be invested on coal evacuation, ₹25,117 crore on mine infrastructure, ₹29,461 crore on project development, ₹32,199 crore on diversification and clean coal technologies, ₹1,495 crore on social infrastructure and ₹1,893 crore on exploration works by 2023-24.

How it will India self-reliant?

Coal India has identified a total of 15 greenfield projects to operate through Mine Developer and Operator (MDO) model. It will increase coal output in India and reduce import dependency of coal. Evacuation infrastructure is another major area where Coal India will be infusing large sums of money into economy and create more jobs. Computer-aided loading technology of coal is being developed to replace the existing methodology of transportation via road for its first mile connectivity. It also involves stakeholders in the company’s affairs which will reduce and uncover the project risks.

Month: Current Affairs - September, 2020