Team News Riveting
Kolkata, December 12
Coal India’s (CIL) capital expenditure increased by Rs 741 crore in eight months ending November FY 2024 to Rs 10,492 crore.
This is 7.6 per cent higher than Rs 9,751 crore of corresponding period last year.
“We are striving to achieve around 80 per cent of the current financial year’s total targeted Capex of Rs 16,500 crore by the third quarter ending December.” said a senior executive of the company.
CIL’s intensified focus on strengthening coal evacuation infrastructure in its mining areas saw the capex under the three heads going up to Rs 3,247 crore, representing 31 per cent of the entire capex, till November 2023. Setting up railway sidings and corridors at Rs 1,842 crore; Construction of coal handling plants (CHPs) and silos for mechanized transportation of coal including weighbridges at Rs 1,292 crore and establishing roads amounting to Rs 113 crore, cumulatively, made up Rs 3,247 crore.
Capex on acquisition of land and related rehabilitation followed at Rs 2,486 crore accounting for almost a quarter during April-November FY 2024. Procurement of heavy earth moving machinery (HEMM) reported Rs 1,954 crore. Diversification and joint ventures like Solar and Hindustan Urvarak Rasayan Limited and Talcher Fertilizers Limited put together made up Rs 1,040 crore. The remaining capex heads were mine development, exploration, prospecting, ERP and other residuals.
“Land and HEMM are major Capex heads that catalyze production growth. Having a robust coal evacuation infrastructure to transport increased volumes of coal in future is a priority where we are upping investments. Capital expenditure is important for asset creation and future revenue” said the executive.
For FY 2024, as in the previous financial year, bulk of CIL’s capex is focused on the three transport infra projects. Together these heads add up to Rs 6,441 crore out of the fiscal’s targeted capex of Rs 16,500 crore.
CIL’s capital expenditure which used to hover between six and seven thousand crore rupees took off sharply in FY’2022 to Rs 13,284 crore doubling over FY 2021 level. Since then the growth curve remained steady. During three successive financial years till FY 2023, CIL’s capex exceeded the budgeted target which is a record of its own.
Capex usually surges up in the last quarter and CIL hopes to exceed this fiscal’s target as well, making it fourth year on the trot.
