IBNS reported that Coal India Limited will invest INR 4275 crore for increased coal production.

As per the approved Budget Estimates for the Annual Plan 2012 to 2013, the capital investment of CIL for achieving a coal production target of 464.10 million tonnes and dispatch target of 470 million tonnes is INR 4275 crore.

Mr Pratik Prakashbapu Patil minister of State of Coal of India said that "In addition a budget provision of INR 5000 crore has been made for acquisition of assets abroad and INR 500 crore for development of Coal Block in Mozambique. Further the envisaged capital investment in the XII plan of CIL is INR 24,400 crore for the period 2012 to 2017. In addition an amount of INR 25,000 crore is also envisaged for acquisition of assets abroad and INR 10,000 crore for development of Coal Block in Mozambique.

Mr Patil said that during 2011 to 2012, the subsidiary companies of CIL have earned 5600 crores more than the notified price of coal, by selling coal through e auction. The purpose of sale of coal under e-auction is basically to provide access to coal for such consumers who are not able to source coal through the available institutional mechanisms for reasons like seasonality of coal requirement, limited requirement of coal not warranting long term linkage etc.

He said that sale of coal under e-auction also provides access to consumers to procure coal of their choice and any incremental amount earned over the notified price, through e auction is incidental.

Source - IBNS

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