Against the capex of ₹6,270 crore in FY20, the company clocked a 109 percent growth amid the Covid slump, according to a senior official of the company.
This also marks the state-owned Maharatna coal miner’s all-time high capital expenditure, breaching the ramped up capex target of Ì€ 13,000 crore, achieving 101 percent of the revised target.
CIL’s original sanctioned capex budget was ₹10,000 crore for FY21.
However, the government assigned CIL a challenging task of achieving 130 percent of the budgeted target to be evaluated as ‘Excellent’ under this specific parameter in MoU rating.
This prompted CIL, for the first ever time, to tweak up its capex budget by 30 percent and revise it to ₹13,000 crore.
“The entire capital expenditure was funded through internal resources. Capex growth during all the four quarters of FY21 was significantly higher compared to previous year. Progressive up to December 2020 also our capex utilisation was more than what was mandated by Ministry of Coal,” said the official.
Procurement of heavy earth moving machinery at ₹3,453 crore topped the list of capex heads for FY21, followed by land at ₹2,470 crore.
Capex in joint ventures, in proportion to CIL’s shareholding, such as Talcher Fertilizers Ltd and Hindustan Urvarak & Rasayan Ltd, accounted for ₹2,194 crore. CIL’s coal evacuation initiatives which include setting up of coal handling plants, silos and constructing sidings, accounted for ₹1,398 crore.
Construction of rail corridors and railway lines summed up ₹1,166 crore, while the rest was made up by different other heads.
This story is from the April 2021 edition of Coal Insights.
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This story is from the April 2021 edition of Coal Insights.
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