CIL’s capex increases by 65 per cent in the first quarter of 2022-23

Coal India Limited’s (CIL) capital expenditure has increased by 64.8 per cent to Rs 30.34 billion in April-June quarter of 2022-23 over comparable quarter last year. The capital expenditure is driven by strong spend in acquiring land and strengthening transport infrastructure in the company’s coalfields under first-mile connectivity (FMC) projects.

CIL’s capital expenditure was Rs 18.41 billion in April-June period of last financial year. The expenditure was spread across all the subsidiaries of CIL. Land acquisition at Rs 6.08 billion accounted for nearly one-fifth of the first quarter’s total capex basket. This is close to 2.3 times of Rs 2.68 billion spent under this head during April-June 2021-22. Meanwhile, the capex under FMC projects, on construction of coal handling plants, silos including weighbridges totalled to Rs 5.77 billion during the quarter under review. This is much higher as compared to Rs 1.41 billion spent in the first quarter of last fiscal.