The PSU said in a statement, "Coal India's (CIL) capital expense in the first half of the current financial year ended at Rs 5,023 crore, ceasing with an all-high utilization of 118 percent."
New Delhi (Natural Energy News): State-owned Coal India said on Tuesday that its capital expenditure was Rs 5,023 crore in the first six months of the financial year 2020-21. In April-September, CAPEX use was at an all-time high of 118 percent in the first half of any fiscal year, the PSU said in a statement.
"This is a notable improvement in CAPEX practice as the Coal India Limited does not overstep the 30 percent mark usage in the first half of the year. The H1 CAPEX has averaged about 20 percent over the past three years." said a senior officer.
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During April-September, CIL saw a strong Capex growth of 242 per cent as compared to Rs 1,467 crore in the April-September period of the previous financial year.
The PSU said, "In the second quarter of the current financial year, the actual capex of Rs 4,179 crore was valued at Rs 3,165 crore, compared to Rs 1,014 crore in the same quarter last year, at Rs 3,014 crore.
In the second quarter, CIL achieved a target of 118 per cent utilization, with a provision of Rs 3,527 crore.
The government recently asked CPSE, including CILE, to accelerate its capital expenditure to boost growth by the end of the second quarter of 2020-21.
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CIL's capex expenditure during the first half of the current financial year was slightly more than half of the Rs 10,000 crore spent for the entire financial year.
Coal Minister Pralhad Joshi is closely monitoring the progress of processes such as land acquisition, setting up of rail logistics and associated infrastructure and especially the development and acceleration of mine development of mega-mine projects.
The land post was paid for the acquisition of Covid Unlock. Major high-value tenders could be terminated on time and heavy earth moving equipment (HEMM) was procured. CIL's strong capex was behind these issues.
Among the major heads, HEMM's purchase of Rs 1,360 crore accounted for 27 per cent of the first half's total capital expenditure. This was then paid for by the acquisition of mining works, close to 26 per cent of the capex, where CIL spent Rs 1,289 crore. Setting up of important rail lines and developing about 21 percent of the H1 capex.
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CIL spent Rs 1,078 crore under this head. These three heads invested Rs 3,726 crore, which was about 74 percent of the entire capital in the first half. The remaining 26 per cent or Rs 1,297 crore components include mine development, coal handling plants, silos, roads, exploration and prospecting, other plant and machinery and joint venture investments.
"Land accession and equipment modernization in fast track mode in collaboration with the Ministry of Coal and deploying it in OC mines will accelerate our production, productivity. Concurrent development of rail and other logistics will facilitate transportation clearance. Production," The officer said.
Coal India contributes 80 per cent of domestic coal production.
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