In 2024, Coal India Limited will record capex of Rs 19,840 crore, a 6.5% increase

The biggest coal miner in the nation, Coal India Limited (CIL), saw its spending soar to Rs 19,840 crore at the end of FY24, the highest amount to date, with an annual increase of 6.5%.

The capex for the preceding fiscal year was Rs 18,619 crore. In a statement, the business claimed to have surpassed the year’s capital goal of Rs 16,500 crore by 120%. For the fourth year running, CIL’s capital expenditures surpassed the allocated amount.

The miner spent the most money (30.6% of the year’s capex)—Rs 6,070 crore—to upgrade the infrastructure for coal transportation and handling in its mining locations. “CIL wants to ensure that there is sufficient infrastructure in place to remove potential increases in the amount of coal produced. According to the firm, this entails establishing first-mile connection projects with roadways, rail sidings, coal handling facilities, and silos.

With corresponding amounts of Rs 2,214 crore and Rs 1,754 crore, South Eastern Coalfields Limited (SECL) and Mahanadi Coalfields Limited (MCL) contributed for 65.4% of this expenditure. The business spent Rs 5,135 crore in FY24, up 52.5% from Rs 3,367 crore in FY23, on land purchase and related rehabilitation, which accounted for the second-highest capital expenditure.

Large land areas are needed by CIL in order to increase its output from OC mines, which make about 96% of the company’s entire output. Three of CIL’s subsidiaries, Central Coalfields (CCL), SECL, and MCL, accounted for 77.3% of the capital expenditures related to land acquisition; CCL topped the list.