MUMBAI: Coal India Limited (CIL), country’s largest coal miner, saw its expenditure rise by 6.5% year-on-year to Rs 19,840 crore by the end of FY24, the highest expenditure to date.
In the previous financial year, the capex was Rs 18,619 crore. The company, in a statement, said it achieved 120% target satisfaction over the year’s capex target of Rs 16,500 crore. 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 crore, 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 crore and Rs 1,754 crore, respectively. The capex for land acquisition and associated rehabilitation was the second highest as the company spent Rs 5,135 crore in FY24, up by 52.5% from Rs 3,367 crore in FY23.
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 (CCL), SECL, and MCL lined up 77.3% of the capex under land acquisition, with CCL leading the list.