CCL Fuels Growth: Capex Doubles to Rs 5,000 Crore by 2030

Central Coalfields (CCL) is strategically increasing its annual capital expenditure to Rs 5,000 crore by 2030, a significant rise from the targeted Rs 2,100 crore set for the current financial year. This expansion is part of the company's concerted efforts to boost coal output by expanding its operations.

In pursuit of a 26 percent growth in coal production, CCL aims to reach 106 million tonnes in the financial year 2024-25, up from the current output of 84 million tonnes. The subsequent fiscal year, FY26, is projected to witness an even higher coal production of 135 million tonnes.

As part of its comprehensive strategy, CCL is in the process of constructing five new washeries, augmenting its coking coal washing capacity. This initiative aims to reduce the ash content in the produced coal from the existing 19 percent to an improved 16 percent. Employing the build-own-operate (BOO) model, these washeries will collectively boast a throughput capacity of 14.5 million tonnes per annum (tpa). This development will significantly contribute to enhancing the availability of coking coal in the country.

These endeavors align seamlessly with the government's ambitious target of achieving 1.5 billion tonnes of domestically produced coal by 2030 and, concurrently, ceasing coal imports by 2026.

Currently, Bharat Coking Coal and CCL, both subsidiaries of Coal India Limited (CIL), are actively involved in coking coal production in the country. The dependency on coal imports is primarily attributed to the elevated ash content in domestically produced coal. Through these strategic investments and operational enhancements, CCL aims to address this challenge and play a pivotal role in fulfilling the nation's coal production goals.

News by Rahul Yelligetti