Team News Riveting
Kolkata, April 16
Coal India’s (CIL) capital expenditure as whole has risen by 6.5 per cent on year to Rs 19,840 crore ending financial year (FY) 2024, the highest till date.
Comparatively, the capex was Rs. 18,619 crore in the preceding fiscal year. CIL achieved 120 per cent target satisfaction over the year’s capex target of Rs. 16,500 crore. For the fourth fiscal on sequence CIL’s capex breached the budgeted target. With the company focusing on strengthening coal transportation and handling infrastructure in its mining areas, capex under this head was highest among others at Rs 6,070 crore , 30.6 per cent of the year’s capex spend.
CIL is aiming to have adequate infra in place to evacuate increased quantities of coal produced in future. This includes setting up first mile connectivity projects with Coal Handling Plants and Silos; rail sidings, rail lines and roads. South Eastern Coalfields Limited (SECL) and Mahanadi Coalfields Limited (MCL) between them accounted for 65.4% of this head with Rs 2,214 crore and Rs 1,754 crore respectively.
Evincing a sharp upward swing on land acquisition and associated rehabilitation and resettlement, capex for land was Rs 5,135 crore in FY 2024, the second highest, posting a jump of 52.5 per cent over Rs 3,367 crore of FY 2023. CIL requires large tracts of land to enhance its production from OC mines which account for 96 per cent of the company’s total output.
CIL’s three subsidiaries Central Coalfields Limited (CCL), SECL and MCL lined up 77.3 per cent of the capex under land head. CCL led the list with Rs 1,909 crore followed by SECL at Rs 1,159 crore and MCL, Rs 904 crore. These three companies have sizeable production potential in future. Combined they are expected to contribute around 68 per cent to CIL’s 1 Billion Tonne output goal.
Procurement of heavy earth moving machinery (HEMM) made up the third highest head with Rs 3,078 crore during FY 2024 achieving the target satisfaction of 156.5 per cent. The target was Rs 1,965 crore. Northern coalfields Limited alone took up Rs 2,262 crore. In its technology and modernization drive, CIL continuously upgrades its mining fleet having larger capacities, better safety and ergonomic features.
The remaining capex amounting to Rs 5,557 crore was spread among other heads which include solar projects, joint ventures, washeries, other plant and machinery, mine development activities including safety, environment, exploration and prospecting and office equipment etc.
