Coal India’s capital expenditure grew 12% to Rs 14,834 cr in FY’22

State-owned CIL said Tuesday that its capital expenditures recorded a 12 percent growth to Rs 14,834 crore in FY’22.

Coal India’s capital expenditure was Rs 13,284 crore in FY’21.

Explaining that capital growth in FY’22 came on the back of a strong base, Coal India (CIL) said in a statement that the entire capital expenditure was met by internal build-up.

“CIL’s FY’21 capex doubled in a year from that of Rs 6,270 crore from FY’20. This means, FY’22 capex growth came on the back of a strong base,” the statement said.

Coal India’s cape impulse was to catalyze production growth and bring it in line with evacuation stores.

Most of the capital expenditure was spread over land, the purchase of heavy earth-moving machinery, the establishment of a coal handling plant (CHP), silos and the creation of railway infrastructure for coal transport.

Land and heavy earth moving machinery (HEMM) combined accounted for 40 per cent of the total capex at Rs 5,867 crore and capital expenditure under land was Rs 3,262 crore in 2021-22.

Land acquisition is important for CIL to increase its open source (OC) mining. Land acquisition for two projects – Searmal and Talcher – from Coal India arm Mahanadi Coalfields Limited (MCL) would help the PSU further expand its mining operations.

The centralized purchase of HEMM for subsidiaries of Coal India – Eastern Coalfields Ltd (ECL), Northern Coalfields Ltd (NCL) and South Eastern Coalfields Ltd (SECL) – amounted to Rs 2,605 crore.

Replacing the old fleet with the modernized equipment deployed in OC mines, especially in SECL and NCL, is essential for upgrading output.

The other significant expenditure of capital, at Rs 2,322 crore, was for the setting up of coal treatment plants / silos with a large share raised by NCL, SECL and MCL.

Strengthening evacuation infrastructure through railway sidings and corridors accounted for Rs 2,307 crore of total capex.

Coal India accounts for more than 80 percent of domestic coal production.

(Only the headline and image of this report may have been re-edited by Business Standard staff; the rest of the content will be automatically generated from a syndicated feed.)

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