NEW DELHI: Coal India Ltd’s capital expenditure rose 33% in the first half of the current financial year (April-September) to Rs 7,027 crore, or Rs 1,727 crore more in the same period a year ago, as the state-run miner expanded coal evacuation infrastructure to speed up supplies.
Evacuation infrastructure was identified as one of the hurdles in improving supplies during the fuel crisis faced by coal-fired plants in 2021 and this year. No wonder, building new coal handling plants or silos and rail corridors and sidings accounted for 36%, or Rs 2,547 crore, of the capital expenditure.
Indeed, coal evacuation projects exceeded expenditure on land acquisition and procurement of heavy earth moving machinery which conventionally accounted for the major part of capital expenditure.
“Coal India is fast-tracking the development of its coal evacuation system to align the increasing production with robust transportation logistics. This would allow handling to ensure seamless movement of coal in future,” a senior company executive said.
Expenditure on construction of coal handling plants/silos under first-mile connectivity projects stood at Rs 1,489 crore during the period, marking an increase of 2.4 times over Rs 614 crore in the previous corresponding period year ago. Most of the expenditure was incurred by CIL’s three subsidiaries MCL, NCL and SECL.
Rail corridors and rail sidings was the next major head where the capital expenditure rose to Rs 1,058 crore, marking an increase of 33% Rs 793 crore in the year-ago period. SECL accounted for more than 56% of this expenditure at Rs 589 crore.
Expenditure on land and heavy earth moving equipment followed with Rs 1,056 crore and Rs 618 crore, respectively.
Evacuation infrastructure was identified as one of the hurdles in improving supplies during the fuel crisis faced by coal-fired plants in 2021 and this year. No wonder, building new coal handling plants or silos and rail corridors and sidings accounted for 36%, or Rs 2,547 crore, of the capital expenditure.
Indeed, coal evacuation projects exceeded expenditure on land acquisition and procurement of heavy earth moving machinery which conventionally accounted for the major part of capital expenditure.
“Coal India is fast-tracking the development of its coal evacuation system to align the increasing production with robust transportation logistics. This would allow handling to ensure seamless movement of coal in future,” a senior company executive said.
Expenditure on construction of coal handling plants/silos under first-mile connectivity projects stood at Rs 1,489 crore during the period, marking an increase of 2.4 times over Rs 614 crore in the previous corresponding period year ago. Most of the expenditure was incurred by CIL’s three subsidiaries MCL, NCL and SECL.
Rail corridors and rail sidings was the next major head where the capital expenditure rose to Rs 1,058 crore, marking an increase of 33% Rs 793 crore in the year-ago period. SECL accounted for more than 56% of this expenditure at Rs 589 crore.
Expenditure on land and heavy earth moving equipment followed with Rs 1,056 crore and Rs 618 crore, respectively.
