CIL charts `50,000 cr spending plans for next five years
30 Nov 2012 7:53 AM IST
Amidst government directive to PSUs (Public Sector Undertakings) to invest their surplus funds, Coal India Ltd, which is sitting on huge cash-pile, has lined up Rs 50,000 crore investment plans for the next five years.
'We have investment plans. We have a five-year plan, almost Rs 50,000 crore lined up,' Coal India Chairman and Managing Director S Narsing Rao said.
Earlier, Finance Minister P Chidambaram had said that government had already put PSUs on notice and no state-run firm would be allowed to fall short of the announced intention to invest. 'If they (PSUs) have not invested and they still have surplus cash, they have been told to invest...the principle is use it or lose it,' the Finance Minister had said.
Rao said the PSU was sitting on a cash reserve of Rs 61,000 crore. 'We don't have plan for the entire money. (It is) not possible to front load, because some of them are conditional...like we have lined up Rs 7,500 crore for railway connectivity,' he added.
Battling low production, Coal India (CIL) has earmarked Rs 24,500 crore capital expenditure, out of Rs 50,000 crore envisaged investment, over the next five years mainly to boost capacity.
The Rs 24,500 crore would be spent mainly on developing more than 100 underground and opencast mines in seven coal producing subsidiaries in the 12th Five Year Plan (2012-17).
CIL accounts for over 80 per cent of the domestic coal production also plans to set up 22 new washeries. World's biggest coal miner, CIL is also eyeing acquisition of assets abroad.
'Something we are pursuing in South Africa. It has not reached at that stage, so too early to say,' Rao said.
COAL-LINKAGE ISSUE TO BE SOLVED IN 2 YRS: BHEL
The coal linkage issue, which was a reason for shrinking of the market will be sorted out within two years, Bhel Chairman and Managing Director B Prasada Rao said on Thursday.
‘We are sure the government is looking at it and are hopeful that issues will get sorted out within a couple of years. It is only an internal issue with certain policy decisions taken. The linkage made available for thermal power plants will be much more accessible in the years to come. We are optimistic that things will improve,’ he said.
In the meantime, Bhel was embarking on a strategic plan to improve their business, he said. Instead of getting contractual orders for boilers and other equipments for power plant, Bhel is looking at EPC model namely Engineering, Procurement and Construction commissioning capability thus enlarging scope of offer in Power Sector. Bhel had already entered into JV with NTPC by creating manufacturing base for certain power plant equipments. the public sector was also entering into smaller business areas like transportation, transmission and renewable energy which will get more attention so as to maintain a balanced portfolio, he said.
Bhel is also working with GE India to offer water management solutions for the power sector, Rao said. In transportation segment, the production capacity at Bhel's own plant at Jhansi is being enhanced to 75 locomotives per year as against 50units. Next year, it will almost be doubled to churn out 100 locamotives, Rao said. With 20-30cities going in for metro rail system in the future, Bhel has inked a tie up with Japanese major Hitachi to roll out metro rail vehicles. Bhel will be investing substantial amount to create facilities for controls and instrumentation systems development in Bangalore, for traction motors in Bhopal and construction of coaches and locos in Jhansi.
Rao said the Bhel was on track for an investment of Rs 1,000 crore, almost equally shared by transmission, transport and renewable energy segments. Earlier, Rao said that adherence to quality will be the mantra for the future as the market conditions globally and in India are witnessing a slowdown, specifically in Power sector.
'We have investment plans. We have a five-year plan, almost Rs 50,000 crore lined up,' Coal India Chairman and Managing Director S Narsing Rao said.
Earlier, Finance Minister P Chidambaram had said that government had already put PSUs on notice and no state-run firm would be allowed to fall short of the announced intention to invest. 'If they (PSUs) have not invested and they still have surplus cash, they have been told to invest...the principle is use it or lose it,' the Finance Minister had said.
Rao said the PSU was sitting on a cash reserve of Rs 61,000 crore. 'We don't have plan for the entire money. (It is) not possible to front load, because some of them are conditional...like we have lined up Rs 7,500 crore for railway connectivity,' he added.
Battling low production, Coal India (CIL) has earmarked Rs 24,500 crore capital expenditure, out of Rs 50,000 crore envisaged investment, over the next five years mainly to boost capacity.
The Rs 24,500 crore would be spent mainly on developing more than 100 underground and opencast mines in seven coal producing subsidiaries in the 12th Five Year Plan (2012-17).
CIL accounts for over 80 per cent of the domestic coal production also plans to set up 22 new washeries. World's biggest coal miner, CIL is also eyeing acquisition of assets abroad.
'Something we are pursuing in South Africa. It has not reached at that stage, so too early to say,' Rao said.
COAL-LINKAGE ISSUE TO BE SOLVED IN 2 YRS: BHEL
The coal linkage issue, which was a reason for shrinking of the market will be sorted out within two years, Bhel Chairman and Managing Director B Prasada Rao said on Thursday.
‘We are sure the government is looking at it and are hopeful that issues will get sorted out within a couple of years. It is only an internal issue with certain policy decisions taken. The linkage made available for thermal power plants will be much more accessible in the years to come. We are optimistic that things will improve,’ he said.
In the meantime, Bhel was embarking on a strategic plan to improve their business, he said. Instead of getting contractual orders for boilers and other equipments for power plant, Bhel is looking at EPC model namely Engineering, Procurement and Construction commissioning capability thus enlarging scope of offer in Power Sector. Bhel had already entered into JV with NTPC by creating manufacturing base for certain power plant equipments. the public sector was also entering into smaller business areas like transportation, transmission and renewable energy which will get more attention so as to maintain a balanced portfolio, he said.
Bhel is also working with GE India to offer water management solutions for the power sector, Rao said. In transportation segment, the production capacity at Bhel's own plant at Jhansi is being enhanced to 75 locomotives per year as against 50units. Next year, it will almost be doubled to churn out 100 locamotives, Rao said. With 20-30cities going in for metro rail system in the future, Bhel has inked a tie up with Japanese major Hitachi to roll out metro rail vehicles. Bhel will be investing substantial amount to create facilities for controls and instrumentation systems development in Bangalore, for traction motors in Bhopal and construction of coaches and locos in Jhansi.
Rao said the Bhel was on track for an investment of Rs 1,000 crore, almost equally shared by transmission, transport and renewable energy segments. Earlier, Rao said that adherence to quality will be the mantra for the future as the market conditions globally and in India are witnessing a slowdown, specifically in Power sector.
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