NEW DELHI: Union Power and Coal Minister Mr Piyush Goshal said that the State-owned organization ‘Coal India’ has drafted plans to invest over Rs 57,000 crore in the next five years, to double its annual production to 1 billion tonnes.
The Kolkata-based government run organization has produced 494 million tonnes of coal during the financial year 2014-15. The latest development underlines India’s future preparations over the growing power demand in the country.
As per the road-map approved by the Coal ministry, Coal India will invest about Rs 6,000 crore in 2015-16 and Rs 8,282 crore in 2016-17. Investments were set to double over the next two years with Rs 14,539 crore and Rs 14,635 crore, slated to be spent in the financial years 2017-18 and 2018-19 respectively.
Coal India will invest Rs 13,529 crore, in the last year of the planning module prepared by it.
When asked about the sources funding the investment, a senior Coal India official said “Total investments to this project will be from the organization . We do not need any kind of debt financing. As of now, Coal India has a cash reserve of around Rs 50,000 crore and the firm is expected to generate Rs 10,000 to 15,000 crore revenue every year. So, it is not a big deal for us to fund this project”.
Having a robust cash reserve is definitely a positive for Coal India at a time where the global financial institutions have either completely stopped funding coal projects or reduced their exposure in the coal sector.