Coal India clears 3 projects with 40 million tonnes capacity

Coal India (CIL) cleared three projects with a total production capacity of 40 million tonnes (MT) and requiring a combined investment of about Rs 5900 crore at a board meeting last week. The company proposed Rs 3900 crore for Lakhanpur-Belpahar-Lilari capacity of 30 MT which is in open cast mine in Odisha under Mahanadi Coalfield. It cleared its second project Rampur-Batura which is new mine with capacity of 4 MT project under South Eastern Coalfields and allocated Rs 1550 crore for the second mine. CIL also cleared Rs 750 crore for Yekona 1 & 2 amalgamate with a capacity of 2.75 MT open cast mine under Western Coalfields.

CIL plans to spend a total of Rs 10600 crore in FY16 to boost its coal production capacity and ramping up the infrastructure. The company spent Rs 5173 crore on its projects in previous fiscal year. It is investing in rail infrastructure to push supplies and planning to invest about Rs 4150 crore in various infrastructure projects, including railway lines. CIL is setting a target of 550 MT production for the current financial year. The company's coal production for April to July stood at 156 MT, with a growth of 10.5 per cent compared to the same period last year.

CIL's consolidated revenue boosted by 9.65 per cent to reach Rs 19518 crore in Q1FY16 as compare to the same period in previous fiscal year. The company's EBITDA rose by 18.03 per cent to Rs 3829.16 crore in Q1FY16 on yearly basis. However, its net profit decreased by 6.67 per cent to Rs 3764 crore in Q1FY16 compared to same period in previous financial year. CIL's other income decreased by 33.63 per cent to Rs 1447 crore in Q1FY16 on yearly basis.

CIL's shareholding pattern indicates that FII holdings expanded by 17 basis points to 9.16 per cent and DII holdings contracted by 21 basis points to 8.61 per cent during June 2015 quarter. The company's stock price on BSE dropped by 4.52 per cent on earlier trade and trading at Rs 339.45 on intraday basis.

CIL operates through approximately 82 mining areas spread over eight states of India. The Company has approximately 429 mines of which 237 are underground, 166 opencast and 26 mixed mines. CIL also operates approximately 17 coal washeries contributes 13 coking coal & 4 non-coking coal establishments and manages other establishments like workshops, hospitals, among others. CIL has 27 training institutes and operates the Indian Institute of Coal Management (IICM) training centre.