PM Modi to inaugurate two Northern Coalfields projects worth Rs 1,394 crore today
Feb 29, 2024
New Delhi [India], February 29 : 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.
These projects to be launched virtually by the Prime Minister are valued at Rs 1,393.69 crore spearheaded by Northern Coalfields Limited, according to a Coal Ministry release.
Among the noteworthy projects to be unveiled are the Jayant OCP CHP-SILO and the Dudhichua OCP CHP-SILO. The Jayant OCP CHP-SILO boasts a capacity of 15 million tonnes per annum (MTPA) and has been developed with an investment of Rs 723.50 crore.
Similarly, the Dudhichua OCP CHP-SILO, with a capacity of 10 million tonnes per annum (MTPA), has been constructed with an investment of Rs 670.19 crore.
These projects, after the inauguration will usher in a new era of efficiency and sustainability in coal evacuation processes, while reducing both transportation time and costs, thereby enhancing overall productivity and profitability.
Moreover, by optimizing logistics and minimizing carbon emissions, these projects will contribute to a greener and more environmentally conscious approach to dispatch of quality coal and its distribution.
The inauguration of these projects underscores the Ministry of Coal's unwavering commitment to infrastructure development and sustainable initiatives, aimed at fostering a greener future and contributing to India's energy security.
State-owned companies operating in the coal sector have made capital expenditure spending worth Rs 20,153 crore as of January 2023-24, marking 95.83 per cent achievement of the annual target.
The Ministry of Coal's capital expenditure target for 2023-24 is Rs 21,030 crore. A capital expenditure, or capex, is used to set up long-term physical or fixed assets.
During the current fiscal year of 2023-24, both Coal India and NLC India are on track to exceed their capital expenditure targets yet again.
Over the past few years, coal companies have been overachieving the capital expenditure target.
Meanwhile, the Ministry of Coal aims to produce 186.63 million tonne (MT) coal exclusively from captive or commercial coal mines during 2024-25.
Production will be further stepped up to 225.69 million tonne during 2025-26 and as per the present plans of the Ministry, production target from such mines will be touching 383.56 million tonne by 2029-30.
