Coal India Ltd (CIL) has scaled up its capital expenditure budget by an additional ₹3,000 crore, revising it to ₹13,000 crore for the ongoing fiscal. This represents a 30 per cent jump over the company’s original capex target of ₹10,000 crore for FY-21.
Of the additional ₹3,000 crore injected into CIL’s capex budget, South Eastern Coalfields, the company’s largest coal producing subsidiary, accounts for ₹800 crore followed by CIL with ₹585 crore, Mahanadi Coalfields with ₹550 crore and Central Coalfields take up ₹460 crore, said a press statement issued by the company.
Some of the major heads CIL has identified for capex are land acquisition, procurement of heavy earth moving machinery, upgrade of rail evacuation infrastructure and mine development. A higher capex on these would help boost the company’s production.
The upsurge comes at a time when the government has directed the central PSUs of the country to step up their capital expenditure to stimulate economic activity.