Coal India scales up capex to 14,834 cr in FY22

12 Apr 2022 , 12:40 PM

Coal India (CIL) has scaled up its capex to Rs 14,834 crore ending FY22, the highest so far.

Going past the MoU target of Rs. Rs.14,695 crore this represents 101% achievement. It was for the second consecutive fiscal that CIL bettered its capex target, which is a record of its own.

The capex increase was up by a sharp Rs.1,550 crore in FY22 compared to Rs. 13,284 crore of FY21, registering a near l2o/o growth. CILs FY21 capex doubled in a year from that of Rs.6,270 crores of FY20. This means, FY22 capex growth came on the back of a strong base. The entire capex was met through internal accruals.

Land and HEMM combined accounted for 40% of the total Capex at Rs. 5,867 crore.

Capex under land was Rs 3,262 crore during FY22 posting a jump of 17% over previous fiscals Rs.2,786 crore. Acquisition of land is vital for CIL to enhance its production from OC mines. Land procured for two projects of MCL – Searmal and Talacher would help the company further widen its mining operations.

The centralized procurement of HEMM for ECL, NCL, SECL amounted to the bulk of Rs.2,605 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.

The other important head of capex spend, at Rs. 2,322 crore, was for setting up coal handling plants/silos with a major share taken up NCL, SECL and MCL. Strengthening of evacuation infrastructure through rail sidings and corridors accounted for Rs. 2,307 crores of total capex.

capex growth during all the four quarters of FY22 and even on monthly basis was significantly higher compared to the previous year.

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