CIL to outsource jobs; spend Rs 500 cr for expansion
Aiming to increase its annual drilling capacity to one million tonne by the end of 2010-11 with an estimated Rs 500 crore, Coal India will outsource a part of its drilling work.business Updated: Apr 12, 2009 12:11 IST
Aiming to increase its annual drilling capacity to one million tonne by the end of 2010-11 with an estimated Rs 500 crore, Coal India will outsource a part of its drilling work. "We will outsource a part of CMPDI's drilling work to increase the capacity from 2 lakh metre per annum to 10 lakh metre over the next two years at an investment of about Rs 500 crore," Coal India Chairman Partha S Bhattacharyya told PTI.
Drilling is the process by which companies establish quality and quantity of estimated mineral reserves. CIL's arm Central Mine Planning and Design Institute (CMPDI) carries out such activities to map and explore coal assets in the country.
Bhattacharyya said CMPDI will award drilling contracts for six lakh metres and double its capacity to four lakh metres in two years by using modern equipments.
Through outsourcing, CIL intends to expedite the process of ascertaining coal reserves that would help it meet the dry fuel requirement of industries, including power and steel. At present, India has a proven coal reserve of 101 billion tonnes while inferred resources of 163 billion tonnes.
As part of its expansion plan, CIL is investing Rs 18,000 crore in the XIth plan period (2007-12) to take up its annual production capacity to 520 million tonnes. In 2008-09, the company produced over 400 million tonnes of coal.