Coal India (CIL) has set to rework the viability of 77 out of 127 projects in the 11th Five Year Plan, this may cause a fall in production of the target in the next three years, reports Business Standard.

CIL has a production target of 435 million tons (mt) in 2009-10 and 520 mt by 2012.

CIL has asked its subsidiary, central mine planning and design institute (CMPDI) to examine the viability of 77 projects on account of the implementation of the National Coal Wage Agreement-VIII, apart from that there would be an additional burden of Rs 5 billion because of the rise in salaries, the financial burden of about Rs 18 billion on the coal PSU.

Of the 127 projects of CIL in the 11th Plan, 50 projects have already been approved and CMPDI has been asked to examine the viability of the remaining 77 projects which are a mix of underground and open cast projects. CIL will try to meet its coal production target of 520 mt by 2012 and will also explore possibilities of alternative viable projects to achieve the targeted production.

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