Coal India's FY24 Capex Surges 6.5% to Rs 19,840 Crore

Coal India's FY24 Capex Surges 6.5% to Rs 19,840 Crore
Coal India Ltd (CIL) announced a significant uptick in its capital expenditure for the fiscal year 2023-24, showcasing a robust 6.5% increase to reach Rs 19,840 crore compared to Rs 18,619 crore in FY23. This surge underscores CIL's commitment to bolstering infrastructure and enhancing operational capacities in the coal sector, crucial for India's energy landscape, given its dominance in contributing over 80% of the nation's coal output.
Despite economic challenges, CIL exceeded its targeted capital expenditure, achieving a remarkable 120% target satisfaction, surpassing the earmarked Rs 16,500 crore for the fiscal year. This marks the fourth consecutive fiscal year where CIL has outperformed its budgeted capex, highlighting its efficiency in financial management.
The focus of CIL's capital investment remains on fortifying infrastructure to facilitate the evacuation of escalating coal production in the future. This strategic vision encompasses the development of first-mile connectivity projects, including coal handling plants, silos, rail sidings, rail lines, and roads.
Of notable significance is the substantial increase in land acquisition expenditure, reaching Rs 5,135 crore in FY24, marking a notable surge of 52.5% from FY23's Rs 3,367 crore. This underscores the importance CIL places on acquiring land for its operations, along with ensuring effective rehabilitation and resettlement measures.
Another key allocation was towards the procurement of heavy earth-moving machinery (HEMM), totaling Rs 3,078 crore, emphasizing CIL's commitment to modernizing its equipment fleet to enhance productivity and efficiency.
The remaining capex, amounting to Rs 5,557 crore, was diversified across various heads, including investments in solar projects, joint ventures, washeries, plant and machinery, mine development activities, safety, environmental initiatives, exploration, prospecting, and office equipment, among others.
CIL's robust capital expenditure signifies its proactive approach towards infrastructure development, technological advancement, and sustainable growth, thereby reinforcing its pivotal role in driving India's coal sector forward.