Coal India plans Rs 17,000 cr capital expenditure target in FY22

17 Aug 2021 CW Team

Coal India Limited (CIL) has established a capex target of Rs 17,000 crore for FY 2021-22. It is nearly over Rs 4,000 crore than its spending the previous year.

The mining and refining firm is expecting an improvement in cash flow with growing demand for coal and important realisation from e-auction purchases.

An official of CIL told the media that the total capex for this year includes infusing Rs 3,000 crore in Talcher Fertilisers Ltd and Hindustan Urvarak and Rasayan Ltd (HURL) and investing Rs 1,000-1,500 crore for railway line construction by a joint venture enterprise.

From its first estimate of Rs 10,000 crore, Coal India amended its capex budget to Rs 13,115 crore for FY 2020-21.

Given the Covid-19 pandemic, the centre had advised Public Sector Undertakings (PSUs) to increase their capital expenditure to drive the economy's growth.

In 2016, Hindustan Urvarak and Rasayan Ltd, including CIL, Indian Oil Corporation Ltd, Fertilizer Corporation of India Ltd (FCIL), NTPC Ltd, and Hindustan Fertilizer Corporation Ltd (HFCL), incorporated as a joint venture entity.

HURL is associated with establishing a natural gas based on a 1.27 mtpa urea plant on the premises of closed fertiliser units of FCIL in Sindri, Jharkhand, Gorakhpur, Uttar Pradesh, and HFCL at Barauni in Bihar.

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Also read: CIL nods increase in coal evacuation facility charges

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