Three coal firms to invest over Rs 5k cr in FY10

The three state-run coal firms -- Coal India (CIL), Neyveli Lignite Corporation (NLC) and Singareni Collieries Co (SCCL) -- will invest Rs 5,374 crore, primarily on expansion during the current fiscal.

As per the the Union Budget, 2009-10 presented today to Parliament by Finance Minister Pranab Mukherjee, the country's largest coal miner CIL, alone will invest more than half the total, about Rs 2,900 crore, on augmenting its production.

CIL aims to produce 435 million tonnes of coal in the fiscal from 403 million tonnes in the previous financial year.

The government is mulling to divest up to 10 per cent of its stake in the navratna firm, paving way for its early listing. As per the navratna norms, the firm has to get listed on the bourses before September, 2011.

To meet the growing domestic requirement of the dry fuel, mainly for power companies, NLC and SCCL will spend Rs 1,893 crore and Rs 580 crore, respectively in increasing their production.

NLC, the largest producer of lignite in the country, is also in the process of commissioning its multi-billion dollars power projects in Rajasthan in the current fiscal.