Coal India’s capex grows 7.6% during Apr-Nov FY24
Coal India on Tuesday reported a 7.6% year-on-year increase in its capital expenditure (capex) for the April-November period to ₹10,492 crore, reflecting its intensified efforts to bridge the investment gap. The company has deployed a significant portion of FY24's targeted capex of ₹16,500 crore for transport infrastructure projects, totalling ₹6,441 crore. “We are striving to achieve around 80% of the current financial year’s total targeted capex of ₹16,500 crores by the third quarter ending December," said a company statement quoting a senior executive.
Investments have been diverse, with capex on land acquisition and related rehabilitation accounting for ₹2,486 crore. Heavy earth moving machinery procurement stands at ₹1,954 crore, while diversification into areas like solar power and joint ventures with Hindustan Urvarak Rasayan Ltd and Talcher Fertilizers Ltd required ₹1,040 crore. “…Capital expenditure is important for asset creation and future revenue," the executive added.
Coal India accounts for more than 80% of domestic coal output. The rest of the capex was deployed for mine development, exploration, prospecting, among others. This increased expenditure marks a departure from the previous norm of ₹6,000-7,000 crore, with a sharp rise in FY22 to ₹13,284 crore, driven by an economic rebound post-pandemic, as per the company statement.
Read more on livemint.com
