In the first half of FY23, Coal India’s capex increased by 33%

On the strength of an increase in spending for the expansion of coal evacuation infrastructure, Coal India Ltd (CIL) reported a 33 percent increase in Capex at 7,027 crores for the first half of the current financial year compared to 5,300 crores in the same period last year. The two infrastructure components for coal evacuation, including the construction of coal handling plants (CHP)/silos and railroad lines, together accounted for 36%, or 2,547 crores, of CIL’s total Capex over the specified period.

For long-term growth prospects, the Capex push is crucial. CIL is moving quickly to enhance its coal evacuation system, according to a senior official of the company, in order to link the growing production with reliable transportation logistics. The capital spending on coal evacuation projects, which typically makes up the majority of Capex, prevailed throughout the referenced time over purchases of land and heavy earth moving machinery (HEMM).

At 1,489 crores in H1 FY23, a 2.4-fold increase from 614 crores in the same period last year, construction of CHPs/silos under first-mile connectivity was the biggest Capex head. The three subsidiaries of CIL, MCL, NCL, and SECL, incurred the majority of the costs. The next significant head, laying tracks, corridors, and rail sidings, saw a capex increase of 33 percent to 1,058 crores.

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