State-run Coal India on Sunday said it would double its production capacity in Chhattisgarh to 220 million tonnes by 2017.
“If rail connectivity is established, then in the next 5-6 years production capacity from our subsidiaries would double from the current level of 110 mt,” Coal India CMD S. Narsing Rao told reporters here.
The company has planned a capital expenditure of Rs 7,500 crore on building three railway lines. CIL would spend an equal amount on new projects after the commissioning of these railway lines.
“If those three railway lines come through, then another Rs 7,500 crore will be invested on additional coal mines,” Rao said.
CIL has fixed a production target of 468.74 million tonnes for the current fiscal.
The off-take target has been fixed at 474.70 mt. Coal India accounts for 80 per cent of the domestic production.
CIL missed its revised 2011-12 production target as it achieved only 435.84 mt as against 447 mt.