Coal India: FY22 capex its highest ever

12 Apr 2022 , 12:39 PM

At a time when the centre is exhorting CPSUs of the country to frontload their capital expenditure to spur economic growth, Coal India Limited (CIL) scaled up its Capex to Rs14,834 crore for the FY22, the highest so far.

Going past the MoU target of Rs14,695 crore this represents a 101% achievement. It was for the second consecutive fiscal that Coal India outnumbered its Capex target, which is a record of its own.

The Capex increase was up by a sharp Rs1,550 crore in FY22 compared to Rs13,284 crore in FY21, registering a near 12% growth. Coal India’s FY21 Capex doubled in a year from that of Rs6,270 crore in FY20. This means FY22 Capex growth came on the back of a strong base. The entire Capex was met through internal accruals.

“Coal India’s Capex boost facilitated output growth and align it with evacuation outlets. Most of the Capex was spread on land, procurement of heavy earthmoving machinery setting up CHP/silos and creation of rail infrastructure for coal transportation” said a senior official of CIL.

Capex growth during all the four quarters of FY22 and even on monthly basis was significantly higher compared to the previous year.
The centralized procurement of HEMM for ECL, NCL, and SECL amounted to the bulk of Rs2,605 crore under this head. Replacing the old fleet with the modernized equipment to be deployed in OC mines, especially in SECL and NCL is essential for output ramp up.

CIL is currently trading at Rs186.55 down by Rs10 or 5.09% from its previous closing of Rs196.55 on the BSE. It touched intraday high and low of Rs196.40 and Rs185.60 respectively.