State-run SECL eyes 16% annual growth in coal production till FY26

New Delhi: South Eastern Coalfields Ltd (SECL) has projected a compound annual growth rate (CAGR) of nearly 16% during FY23 to FY26.

In the last financial year (FY23), the Coal India subsidiary produced 167 million tonne and expects to produce 200 million tonne this fiscal (FY24). By FY26, the company has projected to reach 260 million tonne.

A company presentation showed that during the 2016-2023, its production growth rate was 2.77% CAGR.

With a year-on-year growth of 17% to 167.01 million tonne coal production, FY23 recorded the “highest ever coal production since inception”, it showed.

The Miniratna company also registered its highest ever offtake of the mineral at 160.05 million tonne in the last fiscal and the dispatch to the power sector also touched a record high for the company at 139.92 million tonne.

The growth in supplies to the power sector gains significance as the power demand has been touching record high levels in past couple of years.

Its capital expenditure in FY23 was ₹4,852.61 crore compared to ₹1,903.50 crore in the previous fiscal.

Last month, the union coal ministry in a statement said that the Gevra mine of SECL in Chhattisgarh would be developed as the largest coal mine in Asia after it touched the 50 million tonne coal production per annum level, becoming the largest in the country.

“According to estimates there is enough reserve of coal in Gevra area that can generate electricity for the entire country for 10 years. It is currently being developed for production of 70 million tonne per annum and the company is in the process of getting environmental clearance for the same,” the company said.

The company has also has a major focus on first mile connectivity and several FMC projects are underway ‘Gevra 5&6 Silo’, Gevra RLS (rapid loading system), Baroud CHP (coal handling plants), Chhal CHP among others.

For FY24, the company has also targeted overburden removal of 310 million cubic meters (MCuM) and coal offtake of 200 million tonne.

In terms of the progress of its rail corridors by its subsidiaries Chhattisgarh East Railway Limited (CERL) and Chhattisgarh East-West Railway Limited (CEWRL), SECL said that the Chhattisgarh East Rail Corridor project is being completed in two phases.

The total cost of the project is about ₹2,055 crore including electric broad gauge double line facility, label crossing facility and passenger movement facilities.

The project under CEWRL will be used for transportation of coal from SECL’s mines operating under Korba coalfield. The 191 km long project involving passenger facilities would cost a total of about ₹4,970 crore.

The joint venture companies were formed for the purpose of development of of the two rail corridors namely east rail corridor and east-west rail corridor in Chhattisgarh. SECL holds 64% stake in the JVs, while IRCON International and IRCON International Ltd and Chhattisgarh State Industrial Development Corporation hold 26% and 10% stakes respectively.