Kolkata: Maharatna PSU Coal India (CIL) has more than doubled its capital expenditure to Rs 13,115 crore in FY’21 compared to its previous fiscal. Against the capex of Rs 6,270 crore in FY’20 the company clocked 109% growth amid the Covid slump.
“CIL has never registered such a capex growth. This comes at a time when the Centre has advised CPSEs (Central Public Sector Enterprises) of the country to scale up their expenditure to boost the economy. This also marks the state-owned Maharatna coal miner’s all-time high capital expenditure, breaching the ramped up capex target of Rs 13,000 crore, achieving 101% of the revised target,” the company has said.
CIL’s original sanctioned capex budget was Rs 10,000 crore for FY’21. However, the government assigned CIL a 130% achievement of the budgeted target the company to be evaluated as ‘Excellent’ under this specific parameter in MoU rating. This prompted CIL, for the first ever time, to tweak up its capex budget by 30% and revise it to Rs 13,000 crore.
“The entire capital expenditure was funded through internal resources. Capex growth during all the four quarters of FY’21 was significantly higher compared to previous year. Progressive up to December’20 also our capex utilisation was more than what was mandated by the Ministry of Coal,” said a senior official of the company.
At CIL, procurement of heavy earth-moving machinery at Rs 3,453 crore topped the list of capex heads for FY’21, followed by land at Rs 2,470 crore, yet another important capital of CIL. Capex in joint ventures, in proportion to CIL’s shareholding, like Talcher Fertilizers and Hindustan Urvarak and Rasayan accounted for Rs 2,194 crore.
CIL’s coal evacuation initiatives which include setting up of coal handling plants, silos and constructing sidings accounted for Rs 1,398 crore. Construction of rail corridors and railway lines summed up Rs 1,166 crore, while the rest was made up by different other heads.