BackCoal India Ltd Q1 capex at ₹1,840 cr
State run Coal India Ltd registered a 118% jump in its capital expenditure to ₹1,840 crore for the quarter ended 30 June, the country’s largest coal miner said on Friday.
PremiumNEW DELHI: State run Coal India Ltd registered a 118% jump in its capital expenditure to ₹1,840 crore for the quarter ended 30 June, the country’s largest coal miner said on Friday.
“Coal India’s (CIL) capital expenditure logged a twofold increase to ₹1,840 crore, during the first quarter of FY22, compared to same quarter of last year, as CIL continues to step up investments in evacuation infrastructure, land acquisition and procurement of heavy equipment," the statement said.
This comes in the backdrop of fuel demand increasing on account of a higher offtake from the power sector, with India’s electricity demand on an upward trajectory.
“The capex growth zoomed by 118% during the referred period compared to ₹844 crore in Q1FY21," according to the statement.
India’s power sector is the largest consumer of coal in the country, with CIL being the largest coal miner. Of CIL’s coal production target of 670 mt for the current financial year, the demand from the power sector is expected to account for around 545 mt. India’s overall coal requirement is expected to go up to 1,123 mt by 2023 from the present level of 700 mt.
“CIL has achieved 94% of the progressive target of ₹1,960 crore, set for April-June quarter of the ongoing fiscal," the statement said.
India’ thermal power projects’ operating performance is set to further improve with higher plant load factors (PLFs), according to analysts. PLF is a measure of output of a power plant, with a higher PLF indicating more output at a lower cost. This assumes significance that India’s coal-fuelled power projects were facing low-capacity utilization due to muted demand.
“CIL has pegged its capex target at ₹17,000 crore for FY’22 which is a 28% increase over the actual capital expenditure of ₹13,284 crore during 2020-21," the statement said.
India has the world’s fourth largest reserves and is the second-largest producer of coal. With global shift to green energy to address growing environmental concerns, the Indian government is trying to harness coal reserves within the next three decades.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
