Coal India draws capex plan worth Rs 10,000 cr for FY21
Coal India (CIL) has lined up close to Rs 10,000 crore as capital expenditure in 2020-21.
Capex on plant and machinery and that on land acquisition, rehabilitation and resettlement would together account for nearly 57% of the overall capex during the current financial year. While the plant and machinery portion including procurement of heavy earth moving machinery (HEMM) would account for a major portion of the capex at around Rs 3,700 crore for the year, the expenditure on land acquisition and rehabilitation & resettlement would involve upwards of Rs 1,900 crore.
The balance 43% would be made up by the expenditure on transportation of coal evacuation, mine development, wagon procurement, others including ERP, solar initiatives, R&D, vehicles, exploration, buildings and water supply and environment.
Meanwhile, 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 Covid-induced slowdown the current year’s Q1 capex spend was 4.2% higher compared to same quarter last fiscal,” the release said.
CIL spent Rs 810 crore on its capital expenses in April-June 2019 period. Though the procurement process of certain equipment was completed, execution of the same was delayed due to Covid.
“Capex is a key scoring performance parameter in the memorandum of understanding that CIL signs every year with its administrative ministry – Ministry of Coal,” a senior company executive said in the release.
CIL’s capex utilisation received a boost from three of its subsidiaries including South Eastern Coalfields Ltd (SECL), Northern Coalfields (NCL) and Central Coalfields (CCL) which between them accounted for 81 per cent of the capital expenditure during the first quarter. SECL topped the list with Rs 435 crore actual spend followed by NCL with Rs 149 crore and CCL Rs 102 crore.
Of the actual capex of Rs 844 crore, HEMM, other plants and machinery accounting for Rs 393 crore was the major capex component. This was followed by the spend on coal evacuation transportation infrastructure such as first-mile connectivity including coal handling plants, silos, crusher, railway sidings/corridors worth Rs 241 crore. Mine development, exploration and prospecting amounted to Rs 80 crore and Rs 66 crore, respectively. The balance was made up by the other heads.