Coal India plans to spend Rs 700 crore to purchase its own wagons to despatch fuel for the power sector.
The board of the public sector miner has given its approval to procure 40 rakes under the General Purpose Wagon Investment Scheme of the Indian Railways. One rake comprises 59 wagons and a rake is estimated to move around 1.4 million tonnes of coal per annum.
Coal India expects to realise its entire investment on the rakes in a decade and with the life of the wagons spanning 35 years, it would be an asset creation for the miner as well.
“These CIL-owned rakes will help us push higher volumes of coal to the power sector,” a Coal India official said.
