New Delhi: In a significant development, the Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi, has granted approval for two pivotal projects by Coal India Ltd (CIL), entailing a combined investment of Rs 24,834.86 crore.
The first project involves CIL’s equity investment for establishing a Coal-to-Synthetic Natural Gas (SNG) Project at Eastern Coalfields Limited’s (ECL) command area in Sonepur Bazari, West Bengal. This initiative will be executed through a joint venture with the esteemed public sector gas giant, GAIL. The estimated project capital expenditure is Rs 13,052.81 crore, with CIL contributing 51 per cent equity, amounting to Rs 1,997.08 crore (± 25 per cent). The Debt-Equity Ratio is set at 70:30.
In a parallel move, the CCEA has greenlit the second proposal, focusing on the establishment of a Coal-to-Ammonium Nitrate (AN) Project at Mahanadi Coalfields Limited’s (MCL) command area in Lakhanpur, Odisha. This venture will be undertaken through a joint collaboration between CIL and the eminent public sector entity, BHEL. The estimated project capital expenditure for this endeavor is Rs 11,782.05 crore, with CIL’s equity investment pegged at 51 per cent or Rs 1,802.56 crore (± 25 per cent), maintaining a Debt-Equity Ratio of 70:30.
Crucially, the CCEA has provided the nod for CIL to make equity investments beyond 30 per cent of its net worth in both joint ventures, emphasizing the government’s support for these strategic initiatives. These projects not only signify significant investments but also underscore India’s commitment to innovation and energy diversification in the coal sector.