Coal India Capex records 7.6% YoY growth to reach ₹10,492 crore in Apr-Nov FY24

Coal India Limited's (CIL) capital expenditure increased by ₹741 crores in the eight months ending November FY 2024 to ₹10,492 crores, which is 7.6% higher than ₹9,751 crores in the corresponding period last year. A senior executive of the company has said that it is striving to achieve around 80% of the current financial year's total targeted Capex of ₹16,500 crores by the third quarter ending in December 2023.

CIL's intensified focus on strengthening coal evacuation infrastructure in its mining areas saw the capex under three heads go up to ₹3,247 crores, which represented 31% of the entire capex till November 2023. A capex of ₹1,842 crores was deployed in setting up of railway sidings and corridors; ₹1,292 crores were spent in construction of coal handling plants (CHPs) and silos for mechanized transportation of coal including weighbridges and ₹113 crores were spent in establishing roads.

The capital expenditure on acquisition of land and related rehabilitation amounting to ₹2,486 crores accounted for almost a quarter of the total capex during the period of April to November FY 2024. The procurement of heavy earth moving machinery (HEMM) witnessed a spend of ₹1,954 crores, while diversification and joint ventures like Solar and Hindustan Urvarak Rasayan Limited and Talcher Fertilizers Limited saw a spend of ₹1,040 crores. The remaining capex heads were mine development, exploration, prospecting, ERP and other residuals.