Coal India’s (CIL’s) capital expenditure for financial year 2023-24 increased by 6.5% to Rs 19,840 crore compared with FY23 when the capex stood at Rs 18,619 crore, the company said in a press release. This is the fourth consecutive fiscal year that Coal India’s capex has breached the budgeted target.
CIL achieved 120% target satisfaction over the year’s capex target of Rs 16,500 crore, it said. With the company focusing on strengthening coal transportation and handling infrastructure in its mining areas, capex under this head was highest among others at Rs.6,070 Crores, 30.6% of the year’s capex spend.
CIL is aiming to have adequate infra in place to evacuate increased quantities of coal produced in future. This includes setting up first mile connectivity projects with Coal Handling Plants and Silos; rail sidings, rail lines and roads.
South Eastern Coalfields Limited (SECL) and Mahanadi Coalfields Limited (MCL) between them accounted for 65.4% of this head with Rs. 2,214 Crores and Rs. 1,754 Crores respectively.
Evincing a sharp upward swing on land acquisition and associated rehabilitation and resettlement, capex for land was Rs.5,135 Crores in FY 2024, the second highest, posting a jump of 52.5% over Rs.3,367 Crores of 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 head.
