Equipped to grow: Coal India subsidiary is targetting output of 115 MT by FY 24

Having joined the club of coalfields with an output in excess of 100 MT in the last fiscal, the Northern Coalfields Ltd (NCL) – a subsidiary of the Coal India Ltd (CIL)—is looking to take its operations to the next level with deployment of about 60% of its FY20 capital expenditure of Rs 1,235 crore on purchase of new mining equipment that would boost efficiency and ensure higher volumes.

With a coal production target of 106.3 MT in FY20, CIL’s third largest coal producer would be spending around Rs 700 crore in the fiscal on large-size heavy earth moving machines (HEMMs) such as dumpers, hydraulic shovels and dozers, to significantly reduce the operational time for mining operations—tenders are being finalised for the procurement at present. “The company will easily achieve the 106.3-MT production target for FY20,” Prabhat Kumar Sinha, CMD, NCL, tells FE. Its output of 101.5 MT of coal in FY19 represented annual growth of 9.1%.