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Coal India finalises Rs 5,900 cr heavy machinery contracts

Thursday, 24 Sep 2020
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Coal India (CIL) has finalised contracts for heavy earthmoving equipment worth over Rs 5,900 crore to ramp up production.

CIL is also planning a capex of Rs 10,000 crore during FY21. Early in 2020, the company was looking at spending around Rs 7,000 crore on heavy equipment to bolster production.

Heavy earthmoving machinery worth over Rs 5,900 crore has been finalised for augmentation of coal production and improving age profile of equipment.

To make a quantum jump in the output, Mine Development and Operator (MDO) documents for open cast and underground mines have also been finalised with valuable input from stakeholders approved by the CIL Board

Four tenders have already been floated, of which three are for Central Coalfields and one for Mahanadi Coalfields with 20-25 years of contract period.

Tenders for 10 more mines would be floated shortly, and documents for abandoned mines are under review to make use of advanced technology to augment production further.

Eighteen mining project reports have been cleared by CIL and subsidiary companies last fiscal with a rated capacity of 132.04 million tpa and sanctioned capital of Rs 21,244.55 crore.

The company has set a production target of 650-660 million tonne in FY21 as against 602 million tonne in FY20.

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