Standard Post with Image

Coal India Optimistic on Future Investment to Achieve 1 Billion Production Target by 2020

News

Coal India will invest Rs 57,000 crore by 2020 to more than double annual production to 1 billion tonnes, power and coal minister Piyush Goyal has said. The state-run coal behemoth produced 494 million tonnes of coal in 2014-15.

Source: ET

SNP Insight:

Growing environment concern has drained the cash inflow from foreign institutions to coal projects. But this scarcity of foreign institutional fund may not affect the future coal projects of CIL. The huge positive cash reserve (INR 50,000 Corer) and cash inflow from business may help CIL to fund its future projects without any external source of funding. So, the financial independency of CIL may go to help the company to achieve 1 Billion production target by 2020.

Source: SNP Infra Research