Coal India Ltd (CIL), in a statement, said that it has recorded its highest ever annual capital expenditure of Rs.14,834 crore during FY22.
This FY22 capex was not only 1 per cent higher than what was envisaged in the MoU target, it was also 12 per cent higher than the actual capex of Rs.13,284 crore in FY21.
It is also interesting to note that in FY21, CIL’s capex had doubled from its level of Rs.6,270 crore in FY20. This implies that the growth in FY21 came over a strong base.
The entire capex of FY22 was met through internal accruals, CIL said.
Areas of deployment
CIL said that around 40 per cent of the total capex incurred in FY22 was towards land and heavy excavation and mining machinery (HEMM). The actual expenditure incurred under this head was Rs.5,867 crore.
Capex under land was Rs.3,262 crore in FY22, posting a rise of 17 per cent over the corresponding Rs.2786 crore in FY21. “Acquisition of land is vital for CIL to enhance its production from opencast mines. Land procured for two projects of MCL – Searmal and Talacher — would help the company further widen its mining operations,” CIL said.
The centralized procurement of HEMM for ECL, NCL, SECL amounted to the bulk of Rs.2,605 crore under this head. Replacing the old fleet with the modernized equipment to be deployed in opencast mines especially in SECL and NCL is essential for output ramp up.
The other important head of capex spend, at Rs.2,322 crore, was for setting up coal handling plants/silos with a major share taken up NCL, SECL and MCL. Strengthening of evacuation infrastructure through rail sidings and corridors accounted for Rs.2,307 crore of total capex.
Also See: Coal India achieves record output and off-take in FY22
Key to abbreviations (all subsidiaries of Coal India Ltd): ECL: Eastern Coalfields Ltd; BCCL: Bharat Coking Coal Ltd; CCL: Central Coalfields Ltd; NCL: Northern Coalfields Ltd; WCL: Western Coalfields Ltd; SECL: South Eastern Coalfields Ltd; MCL: Mahanadi Coalfields Ltd; NEC: North Eastern Coalfields Ltd.
