CIL raises FY21 capex budget to ₹13,000 cr

NEW DELHI: State-owned Coal India Ltd (CIL) on Wednesday said it has scaled up its capital expenditure (capex) budget for the ongoing fiscal by an additional ₹3,000 crore, revising it to ₹13,000 crore.

The increase in capex comes at a time when the government has directed central public sector undertakings (PSUs) to step up their capex to stimulate economic activity.

“This represents 30% jump over CIL’s original capex target of ₹10,000 crore for 2020-21,” CIL said in a statement.

Of the additional ₹3,000 crore capex budget, South Eastern Coalfields Ltd, the largest coal producing subsidiary of CIL, accounts for ₹800 crore, followed by CIL headquarters with ₹585 crore and Mahanadi Coalfields Ltd with ₹550 crore.

Central Coalfields Ltd (CIL) takes up ₹460 crore, it said.

CIL had posted a 166% rise in its capex during the first nine months of the current fiscal at ₹7,801 crore.

Compared to ₹2,930 crore capex that the company clocked during April-December period of 2019-20, the actual spend was up by ₹4,871 crore in the corresponding period of FY21.

In the process, CIL had utilised 78% of its total original capex budget during April-December period of the current fiscal. CIL was directed by the government to achieve ₹7,500 crore capex utilisation by the closure of December against which the actual capex utilisation was ₹7,801 crore, which is ₹301 crore more, the company said.

“CIL’s capex for the current year’s Q3 as well, ending December 2020, at ₹2,778 crore posted a strong 90% growth against ₹1,463 crore of same quarter last year. The increased spend during the third quarter was ₹1,315 crore,” it said.

During the second quarter of the current financial year, Coal India Ltd had logged a 312% growth in capex, while the growth was 86.5% during the first quarter.

CIL’s capex during the current financial year makes it one of the top spenders among the Indian PSUs, the company said.

Its land possession and civil construction jobs, among other activities, were hamstrung during the Covid-19-led slowdown. Subsequently, headway could be made with the situation improving post unlock, nudging i ts increased capital expenditure.

“CIL will be closely monitoring the progress of the capital expenditure to achieve the revised target of ₹13,000 crore in the current FY (financial year),” it said.

CIL accounts for over 80% of domestic coal output.