CIL to pump in Rs 91K cr on diversification, projects by FY26: P M Prasad

CIL will pump in Rs 91,000 crore in various projects, including diversification and mine development, by 2025-26, P M Prasad, chairman and managing director of CIL-arm Central Coalfields Ltd said

Domestic coal major Coal India Ltd (CIL) will pump in Rs 91,000 crore in various projects, including diversification and mine development, by 2025-26, P M Prasad, chairman and managing director of CIL-arm Central Coalfields Ltd (CCL) said on Thursday.

The Public Enterprises Selection Board (PESB) on Wednesday recommended the name of Prasad for the post of Chairman and Managing Director (CMD) of Coal India.

"Rs 91,000 crore will be spent on diversification and other projects put together ... These will be pumped in till 2025-26," Prasad told PTI in an interview post his selection to head the coal behemoth.

He said a sum of Rs 36,000 crore will be spent on coal gasification projects while another Rs 46,000 crore will be pumped-in mining developers cum operators (MDOs) and other contracts. The remaining amount will be spent on various other projects.

CIL has already identified 15 greenfield projects having a total project-rated capacity (PRC) of 168.58 million tonnes (MT) per annum for implementation through MDO mode.

Out of these 15 projects, Letters of Award have been given to nine projects to be implemented through MDOs. These nine projects have a production capacity of around 127 MT.

Another six mining projects are at different stages of implementation. Eleven of the 15 projects are opencast and the remaining four are underground mines.

On diversification plans, Prasad said: "Three tenders have already been done for coal gasification project."

With comfortable coal availability in the country, the Centre has decided to promote coal gasification in a big way which can yield multiple energy, chemical and petro-chemical products, most of which are being imported presently.

To set up four coal gasification projects and one lignite gasification project and to promote indigenous gasification technology, CIL has inked pacts with BHEL, GAIL and IOCL.

Further on diversification, Prasad said: "Solar we are installing both on land and also on rooftop. Then diversification will include bauxite mines, aluminium smelters etc besides power plants."

CIL is the largest coal producer in the world and one of the largest corporate employers with a manpower of 2,48,550. It functions through its subsidiaries in 84 mining areas spread over eight (8) states of India. It has 318 mines (as of 1st April 2022) of which 141 are underground, 158 opencast, and 19 mixed mines.

Coal Ministry has set an ambitious roadmap for 2023-24 that covers a variety of areas including a total coal production target of 1012 MT.