Industry & Economy
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Coal
Centre's loans to Coal India arm to be converted as equity
Ambarish Mukherjee
New Delhi
,
Feb. 18
THE Central Government's loans to Eastern Coalfields Ltd (ECL) and Bharat Coking Coal Ltd (BCCL) will be converted into equity, paving the way for the revival of the two loss-making Coal India subsidiaries.
The Finance Ministry has approved the conversion of Government loans to ECL and BCCL into equity, Coal Ministry officials told Business Line.
Both companies will now be referred to the newly constituted Board for Reconstruction of Public Enterprises to give a final shape to the restructuring plans, officials said.
Government loans to ECL and BCCL amount to Rs 994 crore and Rs 1,180.70 crore, respectively.
The Coal Ministry also firmed up plans to take up four more expansion projects to increase coal production by 25 million tonnes annually. These include the Rajmahal expansion project under ECL for an additional 6.5 million tonnes and the Ashoka expansion project under Central Coalfields Ltd for 5 million tonnes (mt).
The other projects are the Dipika expansion project (10 mt) and the Gevra expansion project (4 mt), both under South Eastern Coalfields Ltd.
The proposals will soon be placed before the Cabinet Committee on Economic Affairs (CCEA) for final clearance, officials said.
Recently, CCEA approved three more coal mining expansion projects for increasing annual coal production by 23 million tonnes, officials said.
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