World’s largest coal miner CIL, which is sitting on a huge cash pile, has lined up investment plans of Rs 5,000 crore for the current fiscal.
“We have plans to invest about Rs 5,000 crore during the 2013-14,” Coal India Chairman S Narsing Rao told PTI.
He said the sum would be spent on a combination of projects, including development of five to six projects, as Coal India is battling to increase production and has plans to jack up output by 30-35 million tonnes per annum.
“We have to increase production by 30-35 million tonnes per annum,” he said. The money would also be spent on augmenting infrastructure and mines expansion.
The coal major has already lined up Rs 50,000 crore investment plan for the next five years, including Rs 24,500 crore capital expenditure.
The PSU is sitting on a cash reserve of Rs 61,000 crore.
The proposed investment amount would be spent mainly for developing more than 100 underground and opencast mines in seven coal producing subsidiaries in the 12th Five Year Plan (2012-17), Rao had earlier said.
The PSU also plans to set up 22 new washeries. CIL accounts for over 80 per cent of the domestic coal production.