Coal India arm and Railways to jointly invest INR 15,000 crore in MP


Coal India arm and Railways to jointly invest INR 15,000 crore in MP

Economic Times reported that Coal India subsidiary Northern Coalfields and Indian Railways are jointly investing around INR 6,000 crore in Madhya Pradesh to lay new tracks and turn the existing ones into dual gauge, a move the coal behemoth hopes will help it sell an additional 15 million tonnes of the fuel.

Mr PK Sinha chairman of Northern Coalfields told ET that “Although we would be producing 100 million tonnes of coal this year, our ability to send coal to upcountry consumers are limited due to congestion in existing rail network around our mines. Once the railway projects are completed, coal sale to consumers in north India is expected to rise.”

Northern Coalfields has 11 operational mines in Moher Basin of Madhya Pradesh’s Singrauli district. The mines are surrounded by power plants of NTPC, Lanco and state-owned power companies with aggregate capacity of 14,400 MW.

More than half of the coal produced at these mines is delivered to these power plants through dedicated rail tracks. The country’s upcountry consumers are expected to get about 32 million tonnes of coal this year. Read More

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