CIL’s capex up 6.5% to highest Rs.19,840 Crores in FY 2024

by Psu Connect
Date: 16-04-24

Coal India’s capital expenditure as whole has risen by 6.5% on year to Rs.19,840 Crores ending FY 2024, the highest till date. Comparatively, the capex was Rs. 18,619 Crores in the preceding fiscal year.

CIL’s capex up 6.5% to highest Rs.19,840 Crores in FY 2024

CIL achieved 120% target, over the year’s capex target of Rs. 16,500 Crores. 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 Crores, 30.6% 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 Crores and Rs. 1,754 Crores respectively. Evincing a sharp upward swing on land acquisition and associated rehabilitation and resettlement, capex for land was Rs.5,135 Crores in FY 2024, the second highest, posting a jump of 52.5% over Rs.3,367 Crores of FY 2023.

CIL requires large tracts of land to enhance its production from OC mines which account for 96% of the company’s total output.

CIL’s three subsidiaries Central Coalfields Limited (CCL), SECL and MCL lined up 77.3% of the capex under land head. CCL led the list with Rs.1,909 Crores followed by SECL at Rs. 1,159 Crores and MCL, Rs.904 Crores. These three companies have sizeable production potential in future. Combinely, they are expected to contribute around 68% 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 Crores during FY 2024 achieving the target satisfaction of 156.5%. The target was Rs.1,965 Crores. Northern coalfields Limited alone took up Rs.2,262 Crores. 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 Crores was spread among other heads which include solar projects, joint ventures, washeries, other plant and machinery, mine development activities including safety, environment, exploration & prospecting and office equipment etc.