NCL to invest Rs 4,000 cr for increasing coal prod

KOLKATA: Northern Coalfields Ltd (NCL), a subsidiary of Coal India Ltd, will invest Rs 4,000 crore to augument its production capacity to 70 million tonnes over the next five years and plans foray into power generation.

"NCL will open two new mines and take up expansion work in six other existing mines to increase its coal production to 70 m t from the existing 51 m t. The company will pump in Rs 4,000 crore," Chairman and Managing Director of NCL V K Singh told PTI here.

He said that NCL was planning to diversify into the power generation business preferably through the joint venture route for which it has initiated preliminary talks with Neyveli Lignite Corporation.

"We are exploring the possibility of setting up a pithead power plant. The company is developing a block B mine for the purpose which will have a production capacity of 3.5 million tonne," he said.

To a question, he said that the proposal has not yet been given to the Coal India Board.

Going for power generation, he said, would certainly be beneficial for the company. "We want to be an energy producing company from just a coal producing unit."

To another question, he said that the new projects would be funded through internal accruals as the company has enough surplus funds.