State-run Coal India Ltd (CIL) plans to invest Rs 19,650 crore by FY2023-24 to increase coal transportation capacity by 330 million tonnes (mt) by constructing rail links and setting up joint ventures.

Coal India is funding the construction of three railway lines in its Central Coalfields and Mahanadi Coalfields at an estimated capital of Rs 7,944 crore that will result in an additional 170million tonnes(mt) coal transportation capacity.

The company also has four railway joint ventures with Chhattisgarh, Jharkhand and Odisha at a capital outlay of Rs 11,656 crore that can help the movement of 160mt of coal. Coal India holds 64 per cent in these joint ventures while the remaining 36 per cent is made up by rail PSUs and respective states.

Central Coalfields (CCL), Mahanadi Coalfields (MCL) and South Eastern Coalfields (SECL) are expected to contribute around 69 per cent of Coal India’s overall output by 2024-25 and it is in these subsidiaries that the miner is going for improved evacuation infrastructure.

CIL officials said that some progress has been made on the projects. For instance the doubling of Tori-Shivpur line at CCL is already done and a third line is being set up that would enhance the evacuation capacity to 100mt from 32mt.

Construction work is also in progress to double the Jharsuguda-Barpali-Sardega line at MCL. Coupled with the first mile connectivity projects, the railway projects would enhance MCL’s transportation capacity by an additional 65mt.

At present, Coal India’s rail transportation from its own sidings account for 56 per cent of its total supplies. Total offtake from the Coal India subsidiaries in 2020-21 was 573.8mt.

“It is important to have a robust coal transport mechanism in place to cope with increased volumes of production in the ensuing years. We are laying the groundwork for it,” said a Coal India official.

Earlier this month, coal minister Pralhad Joshi directed coal PSUs to set a revised target to attain one billion tonne production by the end of 2024.