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CIL’s Capex Soars 33% to Rs 7,027 Cr In H1 FY23
CIL stated that the growth came on the tailwinds of expenditure pumped into the expansion of coal evacuation infrastructure
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Coal India’s (CIL) capital expenditure (Capex) soared by 33 per cent in the first half of the current fiscal year compared to H1 FY22, the company said in a statement on Wednesday.
CIL stated that the growth came on the tailwinds of expenditure pumped into the expansion of coal evacuation infrastructure.
The Capex for H1 FY23 stood at Rs 7,027 crore compared to Rs 5,300 in the first half of the previous fiscal.
Coal evacuation infrastructure heads, setting up of coal handling plants (CHP)/silos and railways lines, combined, accounted for 36 per cent or Rs 2,547 crore of CIL’s total Capex ending September FY23.
“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 would help in handling the seamless movement of coal in future,” said a senior executive of CIL.
Construction of CHPs/silos under first-mile connectivity was the major Capex head at Rs 1,489 crore in H1 FY23, increasing 2.4 times compared to Rs 614 in the same period a year ago.
This underscores CIL’s intent to put in place a strong coal transportation infrastructure to move greater quantities of coal in future, the company said in a statement.
Laying rails corridors and rail sidings was the next major head for the coal miner, where the capital expenditure rose to Rs 1,058 crore with an upsurge of 33 per cent. Capex under this head during H1 of the last financial year was Rs 793 crore.
Expenditure on land and heavy earth moving machinery (HEMM) stood at Rs 1,056 crore and Rs 618 crore, respectively.
The coal miner said it is likely to close FY23 with Rs 16,500 crore Capex, representing 2.6 times increase in a span of three years.
“It is essential that concurrent with production Capex is also hiked up to sustain the growth momentum. We have increased our Capex on introduction of modernised fleet and laying new rail lines which are catalysts for output and off-take growth”, the executive added.