CIL lines up Rs 10,000 cr capex for 2020-21
20 July 2020
Coal India (CIL) said that it has lined up Rs 10,000 crore as capital expenditure (Capex) for the current financial year. "Subsidiary-wise combined Capex plan and capital budget of CIL as a whole for FY 2020-21 are pegged at Rs 10,000 crore," CIL said in a statement.
While the plant and machinery portion, including procurement of heavy earthmoving machinery (HEMM), comprises the major share with over Rs 3,700 crore for the year, the expenditure on land acquisition and rehabilitation and resettlement involves upwards of Rs 1,900 crore, it said.
These two heads make up around 57% of the overall Capex of 2020-21. The balance 43% is made up of the expenditure on transportation of coal evacuation, mine development, wagon procurement, and others, including solar initiatives, research, and development, and exploration.
The Capex of CIL, at Rs 844 crore during the first quarter of the current financial year, crossed the provisioned target of Rs 720 crore.
Even amid a coronavirus-induced slowdown, the Capex spend in the first quarter of the current financial year was 4.2% higher compared to the corresponding quarter last fiscal.
CIL spent Rs 810 crore on its capital expenses in the April-June period of the previous financial year. Of the Rs 844-crore Capex, HEMM, other plants, and machinery accounting for Rs 393 crore was the major component.
This was followed by spending on coal evacuation transportation infrastructure like first-mile connectivity, including coal-handling plants, silos, crushers, railway sidings, and corridors worth Rs 241 crore. Mine development & exploration and prospecting amounted to Rs 80 crore and 66 crore, respectively. The balance was made up of the other heads.