Coal news and updates

The coal ministry has estimated an almost 30 per cent jump in plan outlay for the three PSUs under its fold in 2016-17.

 

The total plan outlay for Coal India (CIL), Neyveli Lignite and Singareni Collieries for 2016-17 is Rs 16,343.92 crore against a budget estimate of Rs 12,585.50 crore in 2015-16.

This amount comprises internal and extra budgetary resources of the three PSUs. Among the three, CIL has the highest expenditure outlay of Rs 7,765 crore.

 

According to CIL sources, the amount will be used to complete its projects as it looks to step up production despite short-term concerns over excess supply. As of January 31, 2016, CIL had 85 listed projects worth over Rs 100 crore and where work is ongoing.

 

"While some of the projects are on schedule, certain projects have been delayed because of various reasons. Efforts are on to expedite these projects," a CIL source said. Clearances related to forests, land and availability of infrastructure are mainly responsible for the delay.

 

Neyveli Lignite will spend Rs 6,278.92 crore on mine expansion and thermal and solar power projects. The Chennai-based company is setting up solar power projects at Neyveli in Tamil Nadu and Barsingsar in Rajasthan with a combined capacity of 260 megawatt.

 

The coal ministry, on its part, has set a planned expenditure outlay of Rs 300 crore for 2016-17, which will be spent on conservation and safety of mines, development of transport infrastructure in coalfield areas, R&D, regional exploration of coal and lignite blocks and environmental and subsidence control measures.

 

Buyback move

 

The Coal India board is set to meet on July 11 to consider a proposal to buy back equity shares. As of March 31, 2016, the Centre held 79.65 per cent in the mining behemoth.

 

Five CIL subsidiaries have decided to buy back their own shares from the parent, adding Rs 5,095 crore to Coal India's kitty. The amount will then be used by CIL for the proposed buyback.

Source: Telegraph