Coal India Ltd's Ambitious Expansion Plans to Transform Mining Sector

Coal India Ltd is advancing 119 projects to boost its production capacity to 896 million tonnes per year, with a capital of Rs 1,33,576 crore. The mining company aims to achieve 1 billion tonnes of production by 2025-26, focusing on sustainable mining practices, modernization, and diversification projects.

Coal India Ltd is progressing with 119 projects aimed at expanding its production capacity to 896 million tonnes per year, backed by a sanctioned capital of Rs 1,33,576 crore, the world's largest miner announced. Various stages of implementation reflect CIL's proactive strategy to boost capacity and cater to future coal demands, according to its latest annual report.

The company has not specified a timeline for the capital expenditure. However, it highlights substantial investments in advanced mining technologies and infrastructure to enhance productivity and ensure sustainable mining practices. Kolkata-headquartered CIL targets producing 1 billion tonnes by 2025-26 to meet the nation's coal demands, contributing to the 'Atmanirbhar Bharat' initiative. In the 2023-24 fiscal year, production reached 773.6 million tonnes.

In 2023-24, one coal mining project with a capacity of 20 million tonnes and capital of Rs 1,783.09 crore was completed, exemplifying CIL's capability to execute large-scale projects on schedule. Over the same period, 16 projects with a cumulative capacity of 170.46 million tonnes per annum and sanctioned capital of Rs 27,087.69 crore were approved.

As part of its modernization strategy, CIL is integrating advanced equipment, exploration techniques, mine planning, and optimized extraction processes. Next fiscal year, the company plans to invest over Rs 3,700 crore in high-capacity equipment to bolster efficiency. CIL has set a capital expenditure target of Rs 15,500 crore for 2024-25, earmarking funds for diversification projects including solar and thermal power plants, fertilizer plant revivals, surface coal gasification, and coal bed methane initiatives. In 2023-24, the company's output rose by 2.10%, reaching 26.02 million tonnes.

(With inputs from agencies.)