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Coal India increases capex for FY21 to Rs 13,000 cr

Wednesday, 13 Jan 2021
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Coal India (CIL) has decided to scale up its capital expenditure (capex) by an additional Rs 3,000 crore for FY21. The capex for this FY21 will stand at Rs 13,000 crore.

The capex revision is in line with the Centre’s directive to the public sector utilities (PSUs) to increase their capital expenditure in order to stimulate economic activity.

CIL’s revised capex during FY21 will make it one of the top spenders among the Indian PSUs.

Under the new capex plan of additional Rs 3,000 crore, South Eastern Coalfields accounts for Rs 800 crore followed by CIL headquarters with Rs 585 crore and Mahanadi Coalfields with Rs 550 crore. Central Coalfields takes up Rs 460 crore.

CIL has identified land acquisition, procurement of heavy earthmoving machinery, upgrade rail evacuation infrastructure and mine development for the capex.

CIL has utilised 78 percent of its total original capex budget during April-December 2020. CIL was directed by the Centre to achieve Rs 7,500 crore capex utilisation by the end of December 2020 against which the actual capex utilisation was Rs 7,801 which is Rs 301 crore.

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