Coal India Limited (CIL) is looking to invest an estimated sum of Rs 19,650 crore for strengthening its rail infrastructure to ramp up coal evacuation capacity by an additional 330 million tonnes (mt) annually by 2024. This would be crucial when the state-owned miner would be enhancing production capacity moving forward.
The upcoming projects, some of which are already operational, would help CIL despatch increased volumes of coal through rail, above the existing capacity, from its greenfield and brownfield mining areas, the company said in a press statement.
On a deposit basis, CIL is constructing three important railway lines from its own funds in CCL and MCL at an estimated capital of Rs 7,994 crore with 170 mt per annum coal transportation capacity. Additionally, the company has forged four rail joint ventures with Chattisgarh, Jharkhand, and Odisha at a capital outlay of Rs 11,656 crore which would help move 160 mt per annum of coal.
“These rail infra projects would boost our evacuation. It is important to have a robust coal transport mechanism in place to cope up with increased volumes of production in the ensuing years. We are laying the groundwork for it,” a senior company executive said in the release.
Around 69% of CIL’s overall coal output is expected from CCL, MCL, and SECL by FY-25. In these fields, the company is aggressively laying the foundation for evacuation infrastructure.