CIL will double capex to Rs.10,000 crore in FY16 to meet production target
State-run Coal India Ltd (CIL) will more than double its capital expenditure next fiscal to over Rs 10,000 crore to spruce up infrastructure to meet its production target of 1 billion tonnes, according to a top company executive.
In the current fiscal, the company has invested close to Rs 5,000 crore on new projects, land acquisition and procurement of equipment, while only a fraction was spent on infrastructure.
For 2015-16, CIL has firm plans to invest close to Rs 5,000 crore in infrastructure most of which will go into setting up three rail networks that can increase production by some 100 million tonnes, and another tranche will go into installing equipment that can ramp up production from underground mines. It can touch 400 million tonnes at peak capacity, the executive added.