Wednesday, July 6, 2022

CIL to infuse Rs 19,650 cr in coal evacuation infra projects by FY24

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  • Coal India is constructing three important railway lines from its own funds, on deposit basis, in CCL and MCL at an estimated capital of Rs 7,994 crore
  • Around 69 percent of CIL’s overall coal output is expected from CCL, MCL and SECL by FY25

 
New Delhi: State-run Coal India Ltd (CIL) has said that it is planning to invest Rs 19,650 crore in strengthening its rail infrastructure as it is aiming to increase its coal production to 1 Billion Tonne by FY 2024-25. In an official statement released on Tuesday, CIL said, “To increase coal evacuation capacity through rail mode by an additional 330 million tonnes per annum (MTPA) by FY24, when production is expected to scale up significantly, Coal India Limited (CIL) is investing an estimated capital of Rs 19,650 crore in strengthening its rail infrastructure.”
 
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.

CIL constructing 3 important railway lines from its own funds

Coal India is constructing three important railway lines from its own funds, on deposit basis, in CCL and MCL at an estimated capital of Rs 7,994 crore, having 170 MTPA 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 MTPA 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,” said a senior executive of the company.

Evacuation infrastructure for coal transportation

Around 69 percent of CIL’s overall coal output is expected from CCL, MCL and SECL by FY25. And it is in these fields that the company is aggressively laying foundation for evacuation infrastructure. 
 
The doubling of Tori-Shivpur (CCL) rail line was already commissioned in December 2019 and the tripling of the line, which is under process, shall enhance evacuation capacity to 100 MTPA from the existing 32 MTPA. 
 
Jharsuguda-Barpali-Sardega (MCL) single line was commissioned in April 2018 and the construction work for doubling of the line along with loading bulb at Barpali and a flyover complex at Jharsuguda are under progress, said Coal India. Dovetailing of FMC projects of Sardega 20 MTPA and Lajkura 15 MTPA to this rail connectivity would lift MCL’s transportation capacity additionally by 65 MTPA. 

The four rail JVs are in various stages of progress, with the main rail corridor of Kharsia to Dharamjaigarh, a 74-km stretch under CERL in SECL, being already operational. CIL holds 64 percent stake in these JVs, while the rest 36 percent is made up by rail PSUs and respective states. 
 
Currently CIL’s rail transportation from its own sidings accounts for 56 percent of its total supplies. If loading from goods sheds, private washeries and MGR is also considered, then the percentage of rail movement of coal goes higher to 79 percent.

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