CIL to spend Rs 700 cr on rakes to perk up evacuation capacity by 56 mt

Coal India expects to realise its entire investment on these rakes within a decade

In a first, state-owned miner Coal India Limited (CIL) has decided to buy 40 rakes for Rs 700 crore to enhance its evacuation capability by 56 million tonne (mt). This will not only give the company direct control to move coal to desired power plants, but also also help free up pithead stocks.

Moreover, as the availability of rakes increases, the maharatna public sector unit (PSU) could also enhance its allocation to non-power clients.

According to a company official, one rake comprises 59 wagons and a back-of-the-envelope calculation indicates that one rake can move 1.4 mt of coal per annum.