With a view to minimizing transportation of coal by road, Coal India has planned to invest Rs.3,370 crore in developing its railway siding infrastructure.
The Central PSU, in a release, said that it would be investing the said amount in four of its subsidiaries, towards 21 greenfield and brownfield railway sidings.
Coal India Ltd (CIL) currently has around 152 railway sidings and this number would grow to 173 by the end of FY24.
CIL said that increased coal transportation via road will reduce dust pollution and save on diesel costs, when compared to movement of this dry fuel by road.
The release further observed that existing and new railway sidings, in conjunction with the rapid loading system silos of customers will help improve loading quantity, especially in future when production expands.
Coal India, it may be mentioned, is targeting to attain an annual production level of 1 billion tonnes by FY24. In FY20, CIL, through its eight subsidiaries, produced 602 million tonnes of coal that was around 1 per cent lower than the comparable output of FY19. In the first half (April to September) of FY21, coal production was 236 million tonnes, down 2 per cent year-on-year.
Diversification
Even as CIL has planned to step up coal output, it is taking cognizance of the fact that India’s coal demand, especially from the power sector, is likely to decelerate in the coming years. With this in mind, CIL has planned business diversification.
In a meeting held on December 24, 2020, the board of Coal India Ltd approved the proposal of undertaking the following businesses:
- A greenfield integrated aluminium complex by Central Coalfields, a subsidiary of CIL
- A new business vertical for new and renewable energy
- A new business vertical for solar photovoltaic equipment (ingot-wafer-cell-module)
These proposed business are subject to concurrence from competent authorities, and feasibility studies.
Solar business
In November this year, Coal India also announced that it would be setting up 14 rooftop and ground-mounted solar projects with an aggregate capacity of 3,000 mw, by FY24. Besides, CIL recently formed a joint venture with NLC India Ltd (formerly Neyveli Lignite Corporation) called “Coal Lignite Urja Vikas Private Limited”. Formed on November 10, 2020, this JV aims to develop 1,000 mw of solar capacity.
CIL’s move to develop solar power capacity is directed towards reducing its electricity costs, which stood at Rs.3,400 crore in FY20, accounting for 4.4 per cent of the total revenue expenditure that year.
