Share Market Live

NSE

Coal India Ltd. has issued letters of acceptance (LoAs) for seven coal projects to be pursued through the mine developers and operators (MDOs) to ramp up its production and to cut dependency on imports. The public sector coal miner said in a filing to the stock exchanges that these projects have a cumulative production capacity of nearly 100 million tonnes per year (MT/Y).

Out of the seven projects, three belong to Central Coalfields Ltd. (CCL), two to Mahanadi Coalfields Ltd. (MCL) and one each to South Eastern Coalfields Ltd. (SECL) and Eastern Coalfield Ltd. (ECL), respectively.

Two projects of MCL, Odisha, namely the Siarmal open cast project with an output capacity of 50 MT/Y, and the Hura ‘C’ OCP of ECL, West Bengal, having a capacity of 3 MT/Y are likely to begin their mining operations in the current financial year.

According to the company, it is tracking a total of fifteen Greenfield coal projects to mine coal through MDOs.

Coal India’s investment component would be to the tune of Rs 20,600 crore largely spread on land acquisition, rehabilitation and resettlement issues.

The contract period of engagement for these projects is for 25 years or the mine’s life, whichever is lesser.

Of the total fifteen Greenfield coal projects, eleven have a total rated capacity of nearly 169 MT/Y. These 11 projects are opencast, having a capacity secured at 165 MTY, while the remaining four projects are underground.

The state-owned coal miner added that the LoA for two projects, namely the Madannagar OCP (12 MT/Y) and Pelma OCP (15 MT/Y) of SECL shall be issued shortly, while the remaining six projects are at different stages of tendering.

The role of MDOs would be to excavate, extract and deliver coal to Coal India's companies in accordance with the approved mining plan.

Shares of Coal India are trading 0.2 percent higher at Rs 231.95.

Also Read: Coal India's output crosses 400 MT 30 days ahead of last year

First Published:Dec 14, 2022 3:30 PM IST