Coal India Limited capital expenditure at Rs 4,700 crores ending July FY 2024 clocked 8.5 percent year-on-year growth, the company on Wednesday announced through an exchange filing.
Capex utilization
The capex utilization during the referred period was nearly 100 percent of the progressive target of Rs 4,754 crores and 28.3 percent of annual target of Rs 16,600 crores of FY 2024.
Typically the capex starts slow in the first quarter with the company laying out the expenditures plans at the beginning of the fiscal and gradually builds up in the subsequent quarters. What makes the 8.5 percent capex growth in April-July FY 2024 significant was it came over a high base of Rs 4.332 crores of same period FY 2023, the year when CIL’s capex peaked to an all-time high of Rs 18,619 crores.
“At a time when the Centre has been directing the CPSEs to scale up their capital expenditure for economic revival, CIL in a span of three years has stepped up its capex by three fold or 197 percent. From Rs 6,270 crores in FY 2020 the capex shot up sharply to Rs 18,619 crores in FY 2023” said a senior official of CIL.
Land was the major expenditure head at Rs 1,311 crores accounting for 28 percent of the total capex spend of April-July 2023. This was closely followed by the procurement of heavy earth moving machinery that took up Rs.1,083 crores or 23 percent.
Capex on construction
Capex on construction of rail sidings and rail corridors and coal handling plants and silos, for faster evacuation of coal, was Rs.664 Crores and Rs 572 Crores respectively.
Underscoring the company’s resolve to shore up evacuation infrastructure the budgeted provision for construction of rail sidings and corridors at Rs.4,169 c rores is the highest among the capital expenditure heads for entire FY 2024.
Land acquisition amount
For land acquisition a total amount of Rs. 2,907 Crores was identified for the ongoing fiscal year. While construction of CHPs/Silos is pegged at Rs.2,174 Crores, procurement of HEMM would take up Rs. 1.965 Crores in FY 2024. Rest would be on other heads like plant and machinery; solar projects, JVs and coal washeries.
“Our production is poised to increase substantially in the ensuing years and it is vital to align it with seamless coal transportation. This necessitates heavy investment in coal evacuation infrastructure and first mile connectivity projects with CHP/silo combination”, said the official.
