The state-owned entity intends to strengthen its infrastructure which would facilitate its plans to ramp up production.

In the last fiscal, the company spent Rs50bn ($797m) on new projects, land acquisition and equipment purchases.

A CIL executive was quoted by the Economic Times as saying that the company plans to spend around Rs50bn ($797m) in infrastructure during fiscal 2015-16.

Funds will also be allocated for equipment installation, which could boost production from underground mines.

As part of the project, three rail networks will be established that can handle 400 million tons at peak capacity.

The executive said: "These projects include a 93-km railway line between Tori -Shivpur-Kathautia in Bihar. It is expected to handle 80 million tonnes of coal every year.

"This track is envisaged to evacuate coal from new mining projects in north Karanpura mines of Coal India."

The Tori-Shivpur line is expected to be completed by December 2016, while the Shivpur to- Kathautia section is yet to receive stage-I approval from the environment ministry.

A 450km stretch in Mand-Raigarh Coalfields in Chatishgarh will also be carried out, which will handle 40 million tons.