Coal India's Capex Rises 7.6% to Rs 10,492 Crore; Aims for 80% Target by December

12 Dec 2023 , 02:50 PM

Coal India (CIL) reports a capital expenditure increase of Rs 741 crore in the eight months ending November FY24, reaching Rs 10,492 crore, a 7.6% YoY rise.

The company aims to achieve approximately 80% of the total targeted capex of Rs 16,500 crore for the current fiscal year by the end of the third quarter in December.

CIL’s focus on strengthening coal evacuation infrastructure results in a significant portion of capex, with Rs 3,247 crore allocated to railway sidings, corridors, coal handling plants (CHPs), silos, and road construction.

Capex on land acquisition and related rehabilitation amounts to Rs 2,486 crore, constituting almost a quarter of the total capex during April-November FY 2024.

Procurement of heavy earth moving machinery (HEMM) reports Rs 1,954 crore, while diversification and joint ventures contribute Rs 1,040 crore.

Other capex heads include mine development, exploration, prospecting, ERP, and residuals.

Land and HEMM are identified as major capex drivers for production growth, with a focus on creating a robust coal evacuation infrastructure.

For FY 2024, a substantial portion of CIL’s capex is directed towards three transport infrastructure projects, totaling Rs 6,441 crore out of the targeted capex of Rs 16,500 crore.

CIL’s capital expenditure has shown a significant increase since FY 2022, doubling over FY 2021 levels, and has consistently exceeded budgeted targets for three successive financial years until FY 2023.

The company anticipates a surge in capex in the last quarter, aiming to surpass the fiscal year’s target for the fourth consecutive year.

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