The world’s largest coal mining firm, CIL, declared on Thursday that it has allocated Rs 10,000 crore as capital expenditure ( capex) for the current financial year. “The CIL Subsidiary-Wise Combined Capex Project and Capital Budget as a whole for FY 2020-21 is set at Rs 10,000 crore,” Coal India (CIL) said in a statement.
Although the plant and machinery section, including the procurement of Heavy Land Moving Machinery (HEMM), comprises a major share of over Rs 3,700 crore for the year, expenditure on land acquisition and reconstruction and resettlement amounts to more than Rs 1,900 crore, it said.
These two heads make up about 57% of the 2020-21 total capex. The balance of 43% is made up of expenditure on the transport of coal evacuation, the production of mines, the procurement of wagons and others, including solar projects, research and development and exploration.
The CIL capex, at Rs 844 crore during the first quarter of the current financial year, exceeded the goal of Rs 720 crore.
Also in the sense of coronavirus-induced slowdown, the capex investment in the first quarter of the current financial year was 4.2 per cent higher than in the same period of the previous fiscal year.
CIL invested Rs 810 crore on its capital expenditure for the period April-June of the preceding financial year.
The key part was Rs 844-crore capex, HEMM, other plants and equipment accounted for Rs 393 crore.
That was followed by spending on coal evacuation transport services such as first-mile connectivity, including coal handling plants, silos, crushers, rail sidings and corridors worth Rs 241 crore.
Mine production and discovery and prospecting amounted to Rs 80 crore and 66 crore, respectively.
The balance was made up of the other hands.
Capex is a key success score parameter in the Memorandum of Understanding that CIL signs with its administrative ministry every year, said the company’s senior executive.
“The capex use of the mining monolith was boosted by three of its subsidiaries, South Eastern Coalfields Ltd (SECL), Northern Coalfields Ltd (NCL) and Central Coalfields Ltd (CCL), which accounted for 81 per cent of the capital expenditure at the end of the 20th quarter of June.”
SECL ended the list with Rs 435 crore real expenditure, followed by NCL with Rs 149 crore and CCL Rs 102 crore.
The MOU that CIL enters into with the Government is a signed arrangement and contract between the Center and the management of the central public sector undertaking to review the performance of the CPSE at the end of the year.
