Coal India’s Capital Expenditure Rise to 6.5%
- Indian Masterminds Bureau
- Published on 17 Apr 2024, 11:36 am IST
- 2 minutes read
Highlights
- The company invested Rs. 19,840 crore in mine development activities, exceeding its target of Rs. 16,500 crore by 20%
Coal India Limited (CIL), the country’s largest coal producer, reported a 6.5% rise in capital expenditure for the financial year 2024 (FY’24).
The company invested Rs. 19,840 crore in mine development activities, exceeding its target of Rs. 16,500 crore by 20%. This marks the fourth consecutive year CIL has surpassed its budgeted spending on capital projects.
Coal India is preparing for a significant increase in coal production by building crucial infrastructure for efficient transportation. This includes first-mile connectivity projects. These involve setting up coal handling plants, silos, rail sidings, and improved roads and rail lines. This network will streamline the movement of coal from mines to consumers.Related Stories
Recognizing the importance of land for future expansion, Coal India significantly increased spending on land acquisition and related resettlement programs. This investment reached Rs 5,135 crore in the last fiscal year, a jump of over 50% compared to the previous year.
To enhance its mining capabilities, Coal India invested heavily in heavy earth moving machinery (HEMM) worth Rs 3,078 crore during FY’24. This demonstrates their commitment to modernize their mining operations.
The remaining capex amounting to Rs. 5,557 crore was spread among other heads which include solar projects, joint ventures, washeries, other plant and machinery, mine development activities including safety, environment, exploration and prospecting and office equipment, among others.
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