Guwahati, Oct 18 : Coal India, which entered the capital market today with an initial public offering, plans to expand its operations in Northeast India by starting two open cast mines in upper Assam's Margherita of Tinsukia district.
The two mines were together expected to produce 1.5 to 1.6 million tonnes of coal annually, CIL''s Western Coal Fields director personnel O P Miglani told reporters here.
Stating the region contributed one million tonnes to CIL''s total coal production of 431 MT, Miglani said that the public sector company was also trying to renew its leases with Meghalaya government for enhancing the coal output.
The Northeast India coalfields with 3800 of the company's total 4.08 lakh workforce generated Rs 80 lakh business last year with a production growth of five per cent, he said.
On the environment concerns about open cast mining, Miglani said, "satellite survey of projects are being conducted so that the green coverage destroyed is created, heavy afforestation is done around the mines.
This was done for all the CIL mines resulting in decrease in temperature and increase in rainfall in the northern coalfields, he, said and added, open cast mining was done in small areas following all the safety measures, all the environment issues were taken up, water sprinklers were used and low decibel explosives used for mining.
The largest coal producer and reserve holder in the world with 276.81 billion ton geological resource had produced 431.26 MT in fiscal 2010, another CIL official director finance western Coal Fields R Mohan Das said.
With a projected production of 532.06 MT this year represented a growth rate of 8 per cent, he said, adding, coal met 52.4 percent of the country's energy needs with the power sector's consumption alone being 73 per cent.
Well positioned to capitalise on the high demand for coal in India, CIL's business strategy was to continue with increasing its production and capitalise on the significant demand-supply gap for CIL, Das said.
Meanwhile the CIL entered the capital market offering the Equity Shares at Rs 10 each at a price band fixed between Rs 225 and Rs 245 per share offering five per cent discount retail individual bidders and eligible CIL employees.
The offer for subscription opening today will close on October 21, he added.
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