Coal India’s (CIL’s) capital expenditure for financial year 2023-24 increased by 6.5% to Rs 19,840 crore compared with FY23 when the capex stood at Rs 18,619 crore, the company said on Tuesday.
This is the fourth consecutive fiscal year that Coal India’s capex has breached the budgeted target. CIL achieved 120% target satisfaction over the year’s capex target of Rs 16,500 crore, it said.
The company spent Rs 6,070 crore, 30.6% of its entire capex, on strengthening coal transportation and handling infrastructure in its mining areas. “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,” the company said in a statement.
CIL’s subsidiaries, South Eastern Coalfields and Mahanadi Coalfields, between them accounted for 65.4% of this with Rs 2,214 crore and Rs 1,754 crore respectively.
The capex for land was Rs 5,135 crore in FY24, the second-highest, registering an increase of 52.5% over Rs 3,367 crore in FY23. Central Coalfields (CCL), SECL and MCL lined up 77.3% of the capex under land. CCL topped the list with Rs 1,909 crore capex followed by SECL at Rs 1,159 crore and MCL at Rs 904 crore. The three companies together are expected to contribute around 68% to CIL’s 1 billion tonne output goal.
Procurement of heavy earth moving machinery witnessed a capex target satisfaction of 156.5% at Rs 3,078 crore during the period. The company had a capex target of Rs 1,965 crore for machinery procurement. Northern Coalfields alone took up Rs 2,262 crore.
The remaining Rs 5,557 crore was spread among other heads including solar projects, joint ventures etc.