Coal India capex rises 7.6% on year so far in FY24 Coal India Ltd’s capital expenditure rose by 7.6% on year in the eight months of the ongoing financial year to Rs 10,492 Crores. The target of the company for the fiscal is Rs 16,500 crore. Capex on acquisition of land and related rehabilitation followed at Rs 2,486 crore accounting for almost a quarter of the expenditure during the period.
Coal India Ltd’s capital expenditure rose by 7.6% on year in the eight months of the ongoing financial year to Rs 10,492 Crores. The target of the company for the fiscal is Rs 16,500 crore.
“We are striving to achieve around 80% of the current financial year’s total targeted capex of Rs. 16,500 crore by the third quarter ending December,” the company said.
CIL’s coal evacuation infrastructure in its mining areas saw the capex going up to Rs 3,247 crore, representing 31% of the entire capex, till November 2023. This includes setting up railway sidings and corridors, construction of coal handling plants and silos for mechanized transportation and establishing roads.
Capex on acquisition of land and related rehabilitation followed at Rs 2,486 crore accounting for almost a quarter of the expenditure during the period.
Procurement of heavy earth moving machinery reported Rs 1,954 crores. Diversification and joint ventures like Solar and Hindustan Urvarak Rasayan Ltd and Talcher Fertilizers Ltd made up Rs 1,040 crores of the expenditure. The remaining capex was made on mine development, exploration, prospecting, among others.
CIL’s capital expenditure which used to hover at Rs 6,000-7,000 crore, took off sharply in FY22 to Rs 13,284 crore, doubling over FY21 level. During three successive financial years till FY23, the capex exceeded the budgeted target, the company said.
Capital expenditure usually surges up in the last quarter and the company hopes to exceed this fiscal’s target as well, as in previous three years. The company has produced 460 million tonnes of coal till November with 11.5% year-on-year growth. In order to diversify business, Coal India has also been looking at setting up power generating plants.
