10 Nov , 2022 By : Monika Singh
Coal India’s (CIL) capex rose 33% on year to 7,027 crore in the first half of the current fiscal year as it accelerated coal evacuation infrastructure.
The two coal evacuation infrastructure heads, setting up of coal handling plants (CHP)/silos and railways lines, combined, accounted for 36% or Rs 2,547 crores of CIL’s total capex in H1FY23.
“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.
During the referred period, capital expenditure on coal evacuation projects pipped the heads of land acquisition and procurement of heavy earth moving machinery (HEMM) which conventionally comprises the bulk of the capex.
Construction of CHPs/silos under first-mile connectivity was the major capex head at Rs 1,489 Crores in H1FY23 with an increase of 2.4 times compared to Rs 614 crore in the corresponding 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. Most of the expenditure was incurred by CIL’s three subsidiaries MCL, NCL and SECL.
Laying rails corridors and rail sidings was the next major head where the capital expenditure rose 33% on year to Rs 1,058 crore.
CIL has set a cape target of Rs 16,500 crore for FY23, which it is expected to achieve.