State owned Coal India Ltd (CIL) has stepped up its capital expenditure by 10.3 % to Rs 8,500 crore in 2017-18, compared to the last fiscal.
“The capital expenditure for the year 2017-18 has been set at Rs 8,500 crore,” the coal PSU said in its latest annual report.
CIL’s capital expenditure in 2016-17 was Rs 7,700.06 crore as against Rs 6,123.03 crore in the previous year.
According to the report, the coal PSU has planned to invest Rs 6,500 crore in various projects — Super Critical Thermal Power Plant (STPP), solar power, revival of fertiliser plants, coal gasification, acquisition of coal blocks in India and abroad, and CBM (coal bed methane), etc, during 2017-18.
In 2017-18, CIL has been given coal production of 600 million tonnes (mt), which is an increase of 8.3% over actual output last year. In 2018-19 and 2019-20, CIL has envisaged coal production of 773.70 mt and 908.10 mt respectively.
During 2016-17, the state-owned miner produced 554.14 mt coal, 15.39 mt higher compared to the preceding year. The overall system capacity utilisation for the year 2016-17 was 84.51%, down from 99.87% in 2015-16.
“Necessary action has already been taken for improvement in capacity utilization in 2017-18 in all the subsidiaries of the company,” the report said.
“Going forward in order to meet the production targets, Coal India needs to step up to a double digit growth rate. To sustain the growth momentum in its production and off-take in future, Coal India has formulated following multi-pronged strategies,” Company chairman Suthirtha Bhattacharya said.
Coal despatch to power utilities (including special forward e-auction) during the year was 425.39 mt, 3% higher compared to last year of 413.11 mt. Despatch to NTPC clocked a growth of 4.9% over last year and amounted to 95% of coal supply committed under the fuel supply agreement.
“But for the regulated intake of coal by many of the GenCos (Generation companies), despatch of coal to power sector could have been higher,” Bhattacharya said.
CIL has undertaken three major railway infrastructure projects to achieve the planned growth in production and evacuation in future.
As per the report, Tori – Shivpur-Kathotia new BG Line caters to North Karanpura Area of CCL (Central Coalfields Limited) and can evacuate about 32 mt of coal in a year once the line becomes operational.
Jharsuguda – Barpali – Sardega rail link relates to the coalfields of MCL (Mahanadi Coalfields Limited) and the envisaged capacity evacuation is 70 mt of coal in a year from MCL.
East Rail Corridor and East West rail corridor was planned for evacuation of coal of Mand- Raigarh and Korba – Gevra Coalfields of SECL (South Eastern Coalfields Limited) respectively. In all, about 180 mt of coal in a year shall be evacuated through these two corridors.
Bhattacharya said, a total of 3826.19 hectares of land has been taken into possession during 2016-17 in various subsidiaries of Coal India.
CIL has also planned to set up 22 new washeries and renovate 5 existing coking coal washeries with latest technologies. These will together have throughput capacity of 123.68 mt a year.
“Out of the 22 new washeries, 13 are planned to wash coking coal with a cumulative capacity of 41.35 mty (million tonnes a year), 4 of which are at different stages of construction and LOI (Letter of Intent) has been issued for one. For remaining 9 new non-coking coal washeries with a total capacity of 75.5 mty, LOA/LOIs has been issued for three,” the report said.