NEW DELHI: Coal India Limited, India’s largest coal miner, saw its expenditure rise by 6.5% year-on-year to Rs 19,840 crores by the end of FY 2024, marking the highest expenditure to date. In the previous fiscal year, the capex was Rs 18,619 crores.
The company, in a press note, said that it achieved 120% target satisfaction over the year’s capex target of Rs 16,500 crores. For the fourth consecutive fiscal year, CIL’s capex exceeded the budgeted target. The miner allocated the highest amount to strengthen coal transportation and handling infrastructure in its mining areas, with a capex of Rs 6,070 crores, accounting for 30.6% of the year’s capex spend.
“CIL aims to have adequate infrastructure in place to evacuate increased quantities of coal produced in the future. This includes setting up first-mile connectivity projects with Coal Handling Plants and Silos, rail sidings, rail lines, and roads,” said the company.
South Eastern Coalfields Limited (SECL) and Mahanadi Coalfields Limited (MCL) collectively accounted for 65.4% of this expenditure, with Rs 2,214 crores and Rs 1,754 crores respectively. The capex for land acquisition and associated rehabilitation was the second highest as the company spent Rs 5,135 Crores in FY 2024, up by 52.5% from Rs 3,367 Crores in FY 2023.
CIL requires large tracts of land to enhance its production from OC mines, which account for 96% of the company’s total output. CIL’s three subsidiaries Central Coalfields Limited (CCL), SECL, and MCL lined up 77.3% of the capex under land acquisition, with CCL leading the list at Rs 1,909 crores followed by SECL at Rs 1,159 crores and MCL at Rs.904 crores. These three companies have significant production potential in the future, collectively expected to contribute around 68% to CIL’s 1 Billion Tonne output goal.
Procurement of heavy earth-moving machinery (HEMM) made up the third highest expenditure with Rs 3,078 crores during FY 2024, achieving a target satisfaction of 156.5%. The target was Rs 1,965 crores, with Northern Coalfields Limited alone accounting for Rs 2,262 crores.
In its technology and modernization drive, CIL continuously upgrades its mining fleet with larger capacities, better safety features, and ergonomic improvements. The remaining capex, amounting to Rs 5,557 Crores, was spread among other categories including solar projects, joint ventures, washeries, other plant and machinery, mine development activities including safety, environment, exploration & prospecting, and office equipment.