Coal India’s capital expenditure rose 27 per cent to Rs 7,966 crore during the first half of the current financial year. The company surpassed its H1 target of Rs 7,286 crore. CIL said the money went into mine infrastructure, land acquisition, and new projects to help meet India’s energy needs.
Synopsis
Coal India Ltd has reported a capital expenditure increase of 27% to Rs 7,966 crore for the first half. The company surpassed its H1 target of Rs 7,286 crore, achieving 109% of the planned outlay. Significant investments focused on mine infrastructure development, land acquisition, and diversification initiatives. Over Rs 1,000 crore was spent on operational readiness of mining projects during this period.
New Delhi: State-owned coal producer CIL on Tuesday said its capital expenditure rose 27 per cent to Rs 7,966 crore during the first half of the current financial year from Rs 6,283 crore a year ago.
The increased capex comes in the wake of the company's efforts to modernise its mines, expand production capacity and strengthen coal evacuation infrastructure to meet the country's growing energy requirements.
The expenditure also surpassed the H1 target of Rs 7,286 crore, achieving 109 per cent of the planned outlay for the period and over 48 per cent of the annual capex target of Rs 16,500 crore.
The higher capex reflects Coal India Ltd's (CIL) sustained focus on bolstering mining infrastructure, land acquisition, procurement of heavy earth moving machinery (HEMM) and progress on diversification projects.
Mine infrastructure development emerged as the largest area of investment during the first half of the current fiscal year with Rs 2,152 crore. This included investments in railway sidings and corridors, coal handling plants (CHPs), silos and weighbridges to strengthen the coal evacuation and handling infrastructure, CIL said in a statement.
Live Events
Land acquisition was another major component of expenditure, accounting for Rs 2,033 crore during the period. Additionally, over Rs 1,000 crore was spent on mine development to support the expansion and operational readiness of mining projects, the statement said.
"Capital expenditure under the Plant and Machinery (P&M) segment stood at Rs 1,394 crore. This included investments in HEMMs, washeries and other plant and machinery.
"Of this, Rs 452 crore was spent on procuring HEMMs to strengthen mining operations and enhance operational efficiency," it said.
The coal behemoth continued to advance its diversification initiatives, investing over Rs 739 crore in projects, including solar energy, critical minerals, coal gasification and thermal power generation.
Mine infrastructure development, plant and machinery, land acquisition and diversification remained the principal components of CIL's capital expenditure, together accounting for over 79 per cent of the total capex during the first half of the current fiscal.
These investments are expected to enhance CIL's operational capabilities and help the company meet its production and supply targets for the current financial year, it said.
CIL accounts for over 80 per cent of domestic coal output.
(You can now subscribe to our Economic Times WhatsApp channel)
(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.)
Subscribe to The Economic Times Prime and read the ET ePaper online.
...moreless
(You can now subscribe to our Economic Times WhatsApp channel)
(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.)
Subscribe to The Economic Times Prime and read the ET ePaper online.