CIL to increase capacity

Kolkata, Nov 16 (UNI) Coal India Ltd (CIL) is planning to raise production capacity to 520 million tonnes by the end of 11th five year plan from 363 million tonnes expected in the current year.

Raising of capacity by 157 million tonnes requires an investment of Rs 15,600 crore from internal accruals, CIL chairman P S Bhattacharyya told reporters following an interactive session at Merchant Chamber of Commerce.

The company is planning to outsource a small part of the coal requirement, Mr Bhattacharyya said.

CIL is also looking at e-auctioning at least 20 per cent of production or 72 million tonnes by 2007-08.

"We are looking at e-auctioning target of 36 million tonnes or 10 per cent of the production this year," he said.

CIL, which had clocked of profit of Rs 8,600 crore, would shortly apply for navaratna status, he said.

CIL is also looking at value addition of coal produced. "We will need more washeries through private participation since around 40 per cent of coal sold is not washed," he said.

The company is also giving thrust to underground mining. "We are trying to tap the potential of coal bed methane (CBM). We are also setting up a committee to identify and tap opportunities in underground coal gasification (UCG) projects," he said.

To tackle underground fire in Jharia, CIL has also planned to rehabilitate four lakh people and build 80,000 houses. "We are planning to use the coal after dousing the fire," he said.

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