BackCIL lines up ₹10,000 cr capex for 2020-21
Procurement of HEMM and expenditure on land acquisition and rehabilitation and resettlement constitutes 57% of the overall capex of 2020-21Balance 43% made up by expenditure on transportation of coal evacuation, mine development, wagon procurement, solar initiatives, R&D and exploration
PremiumThe world's largest coal miner CIL on Thursday said it has lined up ₹10,000 crore as capital expenditure (capex) for the current financial year.
"Subsidiary-wise combined capex plan and capital budget of CIL as whole for FY 2020-21 is pegged at ₹10,000 crore," Coal India (CIL) said in a statement.
While the plant and machinery portion, including procurement of heavy earth moving machinery (HEMM), comprises the major share with over ₹3,700 crore for the year, the expenditure on land acquisition and rehabilitation and resettlement involves upwards of ₹1,900 crore, it said.
These two heads make up around 57% of the overall capex of 2020-21. The balance 43% is made up by the expenditure on transportation of coal evacuation, mine development, wagon procurement and others, including solar initiatives, research and development and exploration.
The capex of CIL, at ₹844 crore during the first quarter of the current financial year, crossed the provisioned target of ₹720 crore.
Even amid coronavirus-induced slowdown, the capex spend in the first quarter of the current financial year was 4.2% higher compared to the corresponding quarter last fiscal.
CIL spent ₹810 crore on its capital expenses in the April-June period of the previous financial year.
Of the ₹844-crore capex, HEMM, other plants and machinery accounting for ₹393 crore was the major component.
This was followed by spending on coal evacuation transportation infrastructure like first-mile connectivity, including coal-handling plants, silos, crusher, railway sidings and corridors worth ₹241 crore.
Mine development & exploration and prospecting amounted to ₹80 crore and 66 crore, respectively.
The balance was made up by the other heads.
Capex is a key scoring performance parameter in the Memorandum of Understanding that CIL 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 (SECL), Northern Coalfields Ltd (NCL) and Central Coalfields Ltd (CCL) who between them accounted for 81% of the capital expenditure, ending June, 20 quarter," it said.
SECL topped the list with ₹435 crore actual spend, followed by NCL with ₹149 crore and CCL ₹102 crore.
The MoU that CIL enters into with 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.
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This story has been published from a wire agency feed without modifications to the text.
