Coal India shares climb over 2 per cent as capex rises 33 pc to Rs 7,027 crore
NEW DELHI: State-owned Coal India Limited’s (CIL) capital expenditure rose 33% in the first half of the current fiscal year, as against the same period last year. The company attributed the growth to its expansion of coal evacuation infrastructure. CIL said capex of Rs 7,027 crore during April-September 2022 surpassed Rs 5,300 crore of the comparative period last year by Rs 1,727 crore.
“Capex push is essential for long-term growth prospects. To align the increasing production with robust transportation logistics, CIL is fast-tracking the development of its coal evacuation system. This will help in handling the seamless movement of coal in future,” said a senior CIL executive.
CIL said the two coal evacuation infrastructure heads, setting up of coal handling plants (CHP)/silos and railway lines combined accounted for 36% or Rs 2,547 crore of CIL’s total capex ending September 2022. “The capital expenditure on coal evacuation projects piped the heads of land acquisition and procurement of heavy earth moving machinery (HEMM), which conventionally comprises the bulk of the capex,” said the company in a statement.
Construction of CHPs/silos under first-mile connectivity was the major capex head at Rs 1,489 crore in H1FY ‘23 with an increase of 2.4 times compared to Rs 614 crore of the corresponding period a year ago. Laying rail corridors and rail sidings was the next major head where the capex has risen to Rs 1,058 crore or 33%. Meanwhile, oil PSUs together spent Rs 48,400 crore in the first six months of the current fiscal year, or 43% of their combined annual capex target of Rs 111,354 crore.