Coal India Chalks Out Rs 10,000 Crore Capex Plan For FY21
The company spent Rs 844 crore in Q1 FY21, crossing the provisional capex target of Rs 720 crore in the pandemic-marred quarter.
State-run miner Coal India Ltd. has chalked out a Rs 10,000-crore capex plan for FY21.
"Subsidiary-wise combined capex plan and capital budget of Coal India as whole for FY21 is pegged at Rs 10,000 crore," the world’s largest miner of the dry fuel said in a statement on Thursday.
While Rs 3,700 crore has been set aside for plant and machinery, including purchase of heavy earth moving machinery, Rs 1,900 crore will be spent on land acquisition, and rehabilitation and resettlement.
These two heads make up around 57% of the overall capex for 2020-21. The balance 43% is earmarked for transportation of coal evacuation, mine development, wagon procurement and others, including solar initiatives, research and development and exploration.
The company spent Rs 844 crore in the April-June period of FY21, crossing the provisional capex target of Rs 720 crore in the pandemic-marred quarter. The spending was 4.2% higher compared to the June quarter of FY20.
Capex is a key scoring performance parameter in the Memorandum of Understanding that Coal India signs every year with its administrative ministry, a senior executive of the company said. "The capex utilisation of the mining monolith received a boost from three of its subsidiaries South Eastern Coalfields Ltd., Northern Coalfields Ltd. and Central Coalfields Ltd., which between them accounted for 81% of the capex in the June quarter," it said.
South Eastern Coalfields topped the list with Rs 435 crore actual spend, followed by Northern Coalfields with Rs 149 crore and Central Coalfields Rs 102 crore.
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The MoU that Coal India signs with the government, is a negotiated agreement and contract between the centre and the management of the central public sector enterprise to evaluate the performance of the CPSE at the end of the year.
On Thursday, Coal India shares fell 1.88% to Rs 130.40 apiece on the BSE while the benchmark Sensex rose 1.12% to end the day at 36,737.69 points.
