Coal India scales up capex Rs. 14,834 Crores in FY22

At a time when the centre is exhorting CPSUs of the country to frontload their capital expenditure to spur economic growth, Coal India Limited (CIL) scaled up its capex to Rs.14,834 crores ending FY'22, the highest so far.

Going past the MoU target of Rs.14,685 crore this represents 101 per cent achievement. It was for the second consecutive fiscal that CIL bettered its capex target, which is a record of its own.

The capex increase was up by a sharp Rs. 1550 crores in FY'22 compared to Rs. 13,284 crores of FY'21, registering a near l2% growth. CIL's FY'21 capex doubled in a year from that of Rs. 6,270 crores of FY'20. This means, FY'22 capex growth came on the back of a strong base. The entire capex was met through internal accruals.

"CIL's capex boost was to catalyze the output growth and align it with evacuation outlets. Most of the capex was spread on land, procurement of heavy earth moving machinery setting up CHP/silos and creation of rail infrastructure for coal transportation" said a senior official of CIL.

Land and HEMM combined accounted for 40% of the total Capex at Rs. 5,867 Crores.

Capex under land was Rs. 3,262 crores during 2021-22 posting a jump of l7% over previous fiscal's Rs. 2,786 crores. Acquisition of land is vital for CIL to enhance its production from OC mines. Land procured for two projects of MCL - Searmal and Talacher would help the company further widen its mining operations.

The centralized procurement of HEMM for ECL, NCL, SECL amounted to the bulk of Rs. 2,605 crores under this head. Replacing the old fleet with the modernized equipment to be deployed in OC mines especially in SECL and NCL is essential for output ramp up.

The other important head of capex spend, at Rs. 2,322 crores, was for setting up coal handling plants/silos with a major share taken up NCL, SECL and MCL. Strengthening of evacuation infrastructure through rail sidings and corridors accounted for Rs. 2,307 crores of total capex.

Apart from environmental benefit CHP/silo combination ensures faster seamless coal evacuation and quality coal loading. Rail sidings and lines are being dovetailed with CHPs and silos.

Capex growth during all the four quarters of FY'22 and even on monthly basis was significantly higher compared to the previous year.

Shares of Coal India Limited was last trading in BSE at Rs. 196.55 as compared to the previous close of Rs. 194.55. The total number of shares traded during the day was 661956 in over 8116 trades.

The stock hit an intraday high of Rs. 198.00 and intraday low of 193.40. The net turnover during the day was Rs. 129508665.00.

Source : Equity Bulls

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CoalIndia INE522F01014 CIL Capex CapitalExpenditure FY2022