Coal India plans Rs 1 lakh crore investment; production improves in select subsidiaries

The shares of national coal miner & producer, Coal India can be expected to take cues from the recent announcement of major investment in multiple projects in the next three to four fiscal years.

These steps have been taken towards the aim of achieving 1 billion tonnes (BT) coal production by the year 2023-24.

The company is said to have a planned investment of over Rs 1.22 lakh crore on about 500 projects, which are in direct relation to coal evacuation, infrastructure, project development, exploration, and clean coal technologies.

As per the media statement from the ministry, the funds will be deployed as, Rs 32,696 crore on coal evacuation, Rs 25,117 crore on mine infrastructure, Rs 29,461 crore on project development, Rs 32,199 on diversification & clean coal technologies, Rs 1,495 crore on social infrastructure and Rs 1,893 crore on exploration works by the year 2023-24. At the initial stage, the company would be investing around Rs 14,200 crore by the year 2023-24, in two phases for its 49 first mile connectivity projects.

At the operational front, the company clocked 7 per cent YoY growth in coal production for the month of August. The gains were largely led by Mahanadi Coalfields and Northern Coalfields, which registered a YoY growth of 45 per cent and 8 per cent, respectively in production. Besides, the company reported 26 per cent fall in revenues for Q1FY21.

The shares of the company are listed among that scrip which has not been appreciated sharply in the market turnaround. From its historic price fall in March 2020, the stock is trading higher by just 5 per cent.