CIL to double production capacity in Chhattisgarh

CIL to double production capacity in ChhattisgarhCoal India Ltd (CIL) would double its production capacity in the state of Chhattisgarh, from 110 million tonnes to 220 million tonnes by the year of 2017-18, the state-run miner's CMD S. Narsing Rao said on Sunday.

Speaking to reporters, Rao said, "If rail connectivity is established, then in the next 5-6 years production capacity from our subsidiaries would double from the current level of 110 mt."

CIL has plans to spend Rs 7,500 crore on laying three railway lines. The company would also spend an equal amount on new projects following the commissioning of the new railway lines.

Rao announced the plan to double the production capacity in Chhattisgarh as the company missed its 2011-12 production target. It could produce only 435.84 million tones as against the target of 447 million tones.

For the fiscal year of 2012-13, CIL has a production target of 468.74 million tones. The off-take target has been set at 474.70 million tones.

CIL accounts for 80 per cent of the domestic production.

Meanwhile, the Competition Commission is probing the alleged accusations that CIL is abusing its market dominance, particularly related to fuel supply pacts. The probe is expected to complete by December.