Public sector giant Coal India Limited (CIL), the world's largest coal miner is planning to enhance its drilling capacity to 1 million metre per annum by 2010-11 with an investment of Rs500 crore.

The capacity augmentation will be carried out partly by outsourcing and partly by modernising in-house capabilities.

Currently, exploratory drilling - the process by which mineral deposits are identified and evaluated for estimating the quantity and quality of the reserves - for CIL is carried out by its wing Central Mine Planning and Design Institute (CMPDI).

The expansion envisages doubling of CMPDI's drilling capacity in two years, from the current 200,000 metre per annum to 400,000 metre per annum by introducing latest technology and outsourcing 600,000 metre per annum of drilling to competent agencies.
 
CIL chairman, Partha S Bhattacharyya said. ''We will outsource a part of CMPDI's drilling work to increase the capacity from 2 lakh metre per annum to 10 lakh metre over the next two years at an investment of about Rs500 crore.''
 
Through outsourcing, CIL intends to expedite the process of ascertaining coal reserves that would help it meet the dry fuel requirement of industries, including power and steel.
 
India, with 115 billion tonnes of proven coal reserves commands the fourth position in the world in terms of coal reserves after the US, Russia and China. Inferred reserves are about 172 billion tonnes as per CIL's January 2007 estimates.

CIL produced 379 million tonnes of coal in 2006-07 and the production crossed 400 million tonnes in 2007-08.

The company has ambitious plans of investing Rs 18,000 crore in 118 projects during the eleventh plan period (2007-12) to achieve a production target of 520 million tonnes per annum.
 
CIL is also in the process of acquiring coal assets abroad through its newly constituted subsidiary Coal Videsh, especially in Mozambique and Indonesia. (See: Coal India looks at mines in Mozambique, Indonesia; invites EoIs for reviving old mines)

In a related development, it has been reported that the West Bengal government has taken a decision in principle to consult CIL before allotting land to all future development projects in the state's coal belt.

An agreement has been reached by the state government and CIL to free 400 acres of coal bearing land identified for the Durgapur Aerotropolis, the first airport city in the country to be constructed at a cost of $2.5 billion.
 
CIL chairman said ''Overall post-relocation, 14 million tonnes of mineable coal reserve would be sacrificed for the project. However, the State Government's proposal to find alternate land for other investment proposals would free a far higher quantity of mineable coal reserve.''

In another development, the company's board of directors has endorsed the government recommendations with regard to pay hikes for over 16,000 executives of CIL.