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Coal India to spend Rs7,765 crore to increase mining capacity

Coal India Ltd has budgeted for a capital expenditure of Rs.7,765 crore in the current year to expand mining capacity as the world’s biggest coal miner pursues an aggressive production growth target of 13% year-on-year.In addition to that, the company is looking to spend Rs.5,069 crore on other projects, which include building railway tracks to connect mines, setting up a super critical thermal power plant and reviving fertilizer plants.

Last year, the state-owned miner had spent Rs.6,123 crore to build capacity, exceeding budgetary estimates. In the year before that, it spent Rs.5,173.5 crore.Coal India is up against a steep target of raising production to 908 million tonnes (mt) in 2019-20 from 538.75 mt in 2015-16. This would require the company to step up production by around 13% year-on-year—a bit faster than the 9% growth achieved last year.

Company chairman Sutirtha Bhattacharya wasn’t immediately available for comment.A spokesperson for the company said the amount budgeted for capital expenditure on core mining projects and others is to come entirely from its own coffers.Coal India had Rs.38,312 crore in cash at the end of March.