Coal India records all-time high capex of Rs. 13,115 in FY21

On Thursday, Coal India announced that its capital expenditure (capex) increased by more than two-fold in FY21, reaching an all-time high of Rs. 13,115 crore (US$ 1.76 billion).

CIL's capex budget for FY21 was initially planned at Rs. 10,000 crore (US$ 1.34 billion).

The company said in a statement, “In FY21, Coal India Ltd (CIL) more than doubled its capital expenditure, reaching an all-time high of Rs. 13,115 crore (US$ 1.76 billion). Despite the COVID-19 downturn, the company grew its capex by 109% to Rs. 6,270 crore (US$ 841.92 million) in FY20.”

This emerges at a time when the government has directed the country's CPSEs to increase their spending in order to improve the economy.

External resources were used to cover the whole capital expenditure. In comparison to the previous year, capex growth was substantially higher in all four quarters of FY21. Strong earth moving machinery was purchased for Rs. 3,453 crore (US$ 463.66 million) followed by land for Rs. 2,470 crore (US$ 331.66 million).

According to the company, Capex in joint ventures such as Talcher Fertilizers Ltd. and Hindustan Urvarak & Rasayan Limited accounted for Rs. 2,194 crore (US$ 294.60 million) in proportion to CIL's shareholding. CIL spent Rs. 1,398 crore (US$ 187.72 million) on coal evacuation projects, which included the construction of coal handling plants, silos, and sidings. The cost of building rail corridors and railway lines totalled Rs. 1,166 crore (US$ 156.57 million), with the remainder covered by various other budget lines.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.