Cabinet gives Coal India go-ahead for two projects worth Rs 24,835cr
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The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi on Wednesday approved two major projects to be taken up by Coal India Ltd (CIL) involving a total investment of Rs 24,834.86 crore.
The first proposal relates for equity investment by CIL for setting up of Coal-to-SNG (Synthetic Natural Gas) Project at ECL command area through a JV with public sector gas major GAIL while the second proposal is for setting up of a Coal-to-Ammonium Nitrate Project at MCL command area through a joint venture between CIL and public sector giant BHEL.
The CCEA has given the go-ahead to the CIL proposal for equity capital of Rs 1,997.08 crore (± 25 per cent) considering a Debt-Equity Ratio of 70:30, and 51 per cent Equity Investment in the JV Company with an estimated Project Capex of Rs 13,052.81 crore (accuracy of ± 25 per cent) for the proposed Coal-to-Synthetic Natural Gas (SNG) at Sonepur Bazari Area of Eastern Coalfields Limited (ECL) in Burdwan district of West Bengal through JV of CIL and GAIL.
The CCEA has also cleared the second CIL proposal for equity capital of Rs 1,802.56 crore (± 25 per cent) considering a Debt-Equity Ratio of 70:30, and 51 per cent Equity Investment in JV Company with an estimated Project Capex of Rs 11,782.05 crore (accuracy of ± 25 per cent) for the proposed Coal-to-Ammonium Nitrate (AN) at Lakhanpur Area of Mahanadi Coalfields Limited (MCL) in Jharsuguda district of Odisha through a JV of CIL and BHEL.
The approval has been given for equity investment by CIL beyond 30 per cent of its net-worth in the two JVs.
