Search the Internet          Tips  Sites: Finance, Investment

Coal India to invest Rs 180 bn for mine exploration

Coal India Limited would invest Rs 180 billion for exploration of new mines during the 10th Five-Year Plan period (2002-07).

"We have drawn up an investment plan of Rs 180 billion during the 10th Five-Year Plan period to raise our annual production to 350 million tonnes by 2006-7," company sources told PTI in Calcutta.

The investments would be made for exploration of new mines in areas under the Mahanadi Coalfields, South Eastern Coalfields and Central Coalfields Limited.

CIL would seek joint venture partners for the Magadh and Amrapali projects of CCL, both having an annual production target of 12 mt, the sources said.

A global tender for the purpose would be floated next month.

The National Thermal Power Corporation has agreed to pick up 10 per cent stake while 49 per cent would be offered to new partners, the sources said.

There would, however, be provisions for raising the JV partners' stake from 49 per cent to 51 per cent once the Coal Mines Nationalisation Act is amended.

Meanwhile, CIL has suffered a lower than targeted production during the first quarter of current fiscal, mainly due to closure of some mines in Dhanbad area following an accident in Bagdigi coalmines of Bharat Coking Coal Limited earlier this year.

Tell us what you think of this report