Business

Coal India capex up by Rs 3k cr to Rs 13k cr in FY21

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Kolkata: Coal India (CIL) has scaled up its capital expenditure budget by an additional Rs3,000 crore revising it to Rs 13,000 crore for the ongoing fiscal. This represents 30% jump over CIL’s original capex target of Rs 10,000 crore for 2020-21.
The upsurge comes at a time when the government has directed the Central PSUs of the country to step up their capital expenditure for stimulating economic activity.
According to CIL officials, of the additional Rs 3,000 crore injected into CIL’s capex budget, South Eastern Coalfields, the largest coal-producing subsidiary of CIL, accounts for Rs 800 crore followed by the CIL headquarters with Rs 585 crore and Mahanadi Coalfields with Rs 550 crore. Central Coalfields takes up Rs 460 crore.
In an endeavour to elevate production, the major heads CIL has identified for capex are land acquisition, procurement of heavy earth-moving machinery, upgrade of rail evacuation infrastructure and mine development.
“Maintaining its growth streak in capital expenditure since the beginning of the fiscal, CIL has posted a whopping 166% growth at Rs 7,801crore during the first nine months of the fiscal ending December 20. Compared to Rs 2,930crore capex that the company clocked during the same period last financial year, the actual spend was up by Rs 4,871 crore,” added officials.
CIL’s capex for the current year’s third quarter as well, ending December’20, at Rs 2,778 crore posted a strong 90% growth against Rs 1,463 crore of same quarter last year. The increased spend during the third quarter was Rs 1,315 crore.

Read more at timesofindia.indiatimes.com

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