Though the miner has failed to achieve its production and offtake targets for 2020-21, it has surpassed the revised capital expenditure target of Rs 13,000 crore
Read more about Coal India may announce 20-25% additional dividend on June 14: Report on Business Standard. Coal India Ltd is expected to reward its shareholders with an additional final dividend of 20-25 per cent in its board meeting that will declare fourth-quarter financial results, sources said.
Coal India achieves capex growth of 109 per cent in FY21
April 08, 2021
The growth in capital expenditure comes amid the Covid slump.
Following the central government’s directive to increase capital expenditure to boost the economy and backed by investments in heavy earthmoving machinery and land, Coal India Ltd (CIL) registered around 109 per cent growth in capex in FY-21.
The state-owned miner entailed a total capital expenditure of ₹13,115 crore in 2020-21, compared with ₹6,270 crore during the previous fiscal.
The growth in capex comes amid the Covid slump and at a time when the centre had advised CPSEs of the country to scale up their expenditure to boost the economy, said a press statement issued by the company.
NEW DELHI: Coal India Ltd (
CIL) incurred its highest ever capital expenditure of Rs 13,115 crore in the last financial year, a 109% rise compared to the previous year s capex of Rs 6,270 crore.
The rise in capex comes at a time when the Centre has advised CPSEs of the country to scale up their expenditure to boost the economy amid Covid slump, a company executive said.
CIL’s original sanctioned capex budget was Rs 10,000 crore for FY21. The government had later revised the target to 130% for the company to be evaluated as ‘excellent’ under this specific parameter in MoU rating.
“The entire capital expenditure was funded through internal resources. Capex growth during all the four quarters of FY21 was significantly higher compared to previous year. Progressive upto December 2020 also, our capex utilisation was more than what was mandated by the Ministry of Coal,” said a senior official of the company.