Bhubaneswar | June 29, 2016: Mahanadi Coalfields Ltd (MCL), the largest coal producing subsidiary of Coal India Ltd (CIL) is aiming to open two new greenfield coal mines by 2018 as it gears up to reach the targeted production of 250 million tonne (mt) by 2020.
CIL's output is expected to touch one billion tonne by 2020 with MCL contributing a fourth to this envisaged production.
"We are looking to open some key mines- we intend to open two new mines, Siarmal and Garjanbahal in the next two years. Steps are being taken to overcome all hurdles at the ground level and ramp up production", said an MCL source.
MCL logged a record coal production of 138 mt of coal in 2015-16, thereby becoming the biggest coal producer. The coal company has announced Rs 20,000 crore capital expenditure (Capex) plan to reach the envisaged output of 250 million tonne (mt) by 2020. Most of the investments would be ploughed on infrastructure creation on rail network, road network and coal loading systems.
Among the mines which MCL plans to open in two years, Siarmal in Sundargarh district will have a production capacity of 50 mt per year, making it the second biggest coal mine in Asia.The Garjanbahal coal mine would produce 10 mt.
MCL has identified land acquisition and coal evacuation as the two hurdles to expanding coal production.
To cater to the requirement of enhanced coal handling, MCL in partnership with the Railways, is developing the crucial Jharsuguda-Sardega line and Talcher-Angul rail link. Total expenditure on the rail network would be Rs 2,500 crore.
MCL has forged a special purpose vehicle (SPV) called Mahanadi Coal Railway Ltd with Ircon International Ltd and the Odisha government for evacuation of coal. MCL would have the major stake in the SPV with 64%, Ircon will hold 26% and the rest 10% by state-owned Odisha Industrial Infrastructure Development Corporation (Idco). This SPV would take care of rail infrastructure projects.
This SPV will not only cater to the current evacuation need of the company but it will also identify the evacuation constraints, which impede the growth of MCL and accordingly, it will implement the evacuation plans.
(Source: http://www.business-standard.com/)