Wednesday, August 28, 2013

CIL to spend Rs 4000 cr for acquisition of assets abroad in FY 2013-14

Coal India Ltd (CIL) has envisaged a capital outlay of Rs 5000 crore for its domestic activities and an ad-hoc provision of Rs 4000 crore for acquisition of assets abroad and development of coal blocks in Mozambique in 2013-14. This information was given by minister of state for coal Pratik Prakashbapu Patil in Lok Sabha.
But the question arises whether the investment of such a huge chunk of money abroad will further weaken...
the already beleaguered rupee which has touched its all time low against dollar. As on August 28, rupee was hovering around 68 against the US dollar. CIL is also pursuing the development of coal mine methane (CMM) from its mining areas. This will ensure mine safety and the measure is environment-friendly as well. The ministry of coal has made Central Mine Planning & Design Institute (CMPDI) the nodal agency for development of CMM in India.
CIL has successfully implemented a CMM demonstration project at Moonidih mine of Bharat Coking Coal Ltd (BCCL), funded by government of India and United Nations agency UNDP, the minister added.
He also said that a total of 33 CBM blocks have been awarded under fourth rounds of CBM bidding, out of which three blocks have been relinquished. 9.9 trillion cubic feet (TCF) of CBM gas in-place has been established in 8 blocks so far.
The CIL has planned to produce 482 Mt in 2012-13 and has envisaged to produce 615 Mt in the terminal year of 12th Plan (2016-17).
The minister also informed the House that the successful implementation of the project has proved the efficacy of the technology of CMM extraction and its utilisation in Indian geo-mining condition. Based on the success of pilot project, the CIL has adopted steps for identification of new areas for development of such CMM projects.
The minister also said that the government has approved the gas price formula based on the Rangarajan Committee recommendations, which will be applicable from April 1, 2014 for a period of five years. These gas prices will be applicable to all natural gas including CBM.
CIL has envisaged investing Rs 25,400 crore during 12th Plan (2012-17) for its domestic activities out of which, about Rs 7500 crore has been planned to invest in rail infrastructure projects.

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