The expenditure was incurred for the purchase of heavy earth-moving machinery, the establishment of railway lines, the development of sidings, and investment in joint works.
New Delhi (Natural Energy News): Despite its cash flow issues, Coal India Limited has spent Rs 8,000 crore as capital expenditure (Capex) in the current financial year till December 2020 and intends to meet the revised target of Rs 13,000 crore for such expenditure. . FY'21, an official said on Sunday.
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The Coal India officer told that the capital expense mark for the financial year 2020-21 was originally set at Rs 10,000 crore.
The administration has instructed the public sector corporations to improve the economy to boost their capital expense which was in the control of COVID-19 epidemic.
“With the achievements of our internal targets, the government has increased our capital expenditure target to Rs 13,000 crore.
"We have passed over Rs 8,000 crore by December and will surely pass over the Rs 10,000 crore mark. We will chase the new target as it will help revive the economy," a CIL official said.
The Maharatna PSU had expended Rs 5,023 crore in September during this financial year, which was around 118% of its half-year mark.
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The expenditure was for the purchase of heavy earth-moving machinery, the establishment of railway lines, the development of sidings, and investment in joint works.
The official said the major challenge for Coal India to accelerate capital expenditure is cash flow issues.
In addition, there has been a demand for more than 50 million tonnes of stock in the Pyths and 37 million tonnes at thermal power stations, sluggish coal from industry sources.
"As per the stock required of 21 days, power plants have coal for departments holding out 23-24 days. How will they buy extra coal?" they said.
To further its sales, coal prices may have to be rationalized to replace dry fuel imported from the mine.
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The target of Coal India was to replace 80-85 million tonnes of imported dry fuel with more domestic supplies in the current financial year.
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