CIL Hikes 2020-21 CAPEX by 30%
Indian state owned coal giant Coal India Limited has hiked its capital expenditure budget by 30% to INR 13,000 crore for the on going fiscal 2020-21. Of the additional INR 3,000 crore injected into CIL's CAPEX budget, South Eastern Coalfields Ltd accounts for INR 800 crore followed by CIL headquarters with INR 585 crore and Mahanadi Coalfields Ltd with INR 550 crore, a company executive said. Central Coalfields Ltd will spend INR 460 crore. 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.
CIL has utilized 78% of its total original CAPEX budget during April-December’20. Coal India’s land possession and civil construction jobs, among other activities, were affected during the Covid -led slowdown. Subsequently, headway could be made with the situation improving post unlock, nudging its increased capital expenditure.