PSU coal companies to invest over Rs 35,000 crore during 11th plan
By Our Corporate Bureau | 28 May 2007
Mumbai: Public sector coal companies propose to invest over Rs35,000 crore to meet core sector production targets of 680 million tonnes during the 11th plan.
"The coal ministry has said the state-run coal units have proposed a capital outlay of Rs35,774.37 crore during the 11th plan for producing 680 million tonnes of coal to meet the growing requirements of the core sectors comprising power, steel and cement companies," a top coal ministry official said.
The working group on coal and lignite constituted by the government has projected the country's coal demand in the terminal year of the 11th plan at 731.1 million tonnes.
"The annualised growth rate of coal demand is expected to be 9 per cent over the 10th plan demand of 474.18 million tonnes and has pegged countrywide coal demand for the current fiscal at 492.5 million tonnes. Coal India Ltd (CIL) and Singareni Collieries Company Ltd (SCCL) were expected to supply 520.5 million tonnes and 40.8 million tonnes of coal respectively during the plan period," he said.
Of the total sum, CIL has proposed an outlay of Rs17,390.07 crore, SCCL Rs3,340.3 crore, and Neyveli Lignite Corporation (NLC) Rs15,044 crore, the official said.
In the revised expenditure estimates for the terminal year of the 10th plan, (2006-07), however, the outlay for CIL has been reduced from Rs3,067.7 crore originally envisaged to Rs2,420 crore.
The revision has been attributed to delay in land acquisition and rehabilitation besides delays in forestry and EMP clearances and finalisation of tender for procurement of equipments.
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