PM Modi will inaugurate two northern coalfield projects worth Rs 1,394 crore today

February 29, 2024

New Delhi : Prime Minister Narendra Modi will inaugurate two First Mile Connectivity projects (FMC) of Northern Coalfields Limited (NCL), a subsidiary of Coal India Limited, on Thursday. According to a release from the Coal Ministry, these projects, to be launched virtually by the Prime Minister, are worth Rs 1,393.69 crore and are being led by Northern Coalfields Limited.

Notable projects to be unveiled include Jayant OCP CHP-Silo and Dudhichua OCP CHP-Silo. Jayant OCP CHP-SILO has a capacity of 15 million tonnes per annum (MTPA) and has been developed with an investment of Rs 723.50 crore. Similarly, Dudhichua OCP CHP-SILO with capacity of 10 million tonnes per annum (MTPA) has been constructed with an investment of Rs 670.19 crore.

Once inaugurated, these projects will usher in a new era of efficiency and sustainability in coal extraction processes, while reducing both transportation time and costs, thereby increasing overall productivity and profitability. Furthermore, by optimizing logistics and reducing carbon emissions, these projects will contribute to a greener and more environmentally conscious approach to the dispatch and distribution of quality coal.

The inauguration of these projects underlines the Coal Ministry’s unwavering commitment towards infrastructure development and sustainable initiatives, aimed at promoting a green future and contributing to India’s energy security. State-owned companies operating in the coal sector have spent capital expenditure of Rs 20,153 crore till January 2023-24, which is 95.83 per cent achievement of the annual target.

The Coal Ministry’s capital expenditure target for 2023-24 is Rs 21,030 crore. Capital expenditure or capex is used to establish long-term physical or fixed assets. During the current financial year 2023-24, both Coal India and NLC India are once again on track to exceed their capital expenditure targets.

Over the past few years, coal companies have been exceeding capital expenditure targets. Meanwhile, the coal ministry aims to produce 186.63 million tonnes (MT) of coal during 2024-25, exclusively from captive or commercial coal mines. The production will be increased to 225.69 million tonnes during 2025-26 and as per the current plans of the ministry, the production target from such mines will reach 383.56 million tonnes by 2029-30.