Coal India capex jumps 65% (YoY) in Q1 FY2023

Coal India (CIL) has achieved 65% growth in capital expenditure in Q1 FY23 over corresponding period of pervious year. CIL's capex witnessed growth for ninth successive quarter. CIL's capex jumped to Rs.3,034 crore during April-June FY22 compared to Rs.1,841 crore of April-June FY21 resulting in a sizeable Rs. 1,193 crore volume increase.

Land acquisition at Rs.608 crore accounted for nearly one-fifth of the first quarter's total capex basket. This represents close to 2.3 fold increase compared to Rs. 268 crore spent under this head during April-June FY21. The expenditure was spread across all the subsidiaries of CIL.

Capex under FMC projects, on construction of coal handling plants, silos including weighbridges totaled to Rs. 577 crore during the quarter under reference. This is a four-fold increase compared to Rs.141 crore spent in Q1 of last financial year.

Rail sidings and laying of rail corridors took up Rs.571 crore during Q1 FY23 clocking 57% growth. On a like to like comparison the expenditure under this head was Rs. 363 crore.

Both the evacuation logistics projects put together at Rs. 1,148 crore accounted for more than one-third or 38% of the total capex of Rs. 3,034 crore of the first quarter.

Another significant capex head was joint ventures, Hindustan Urvarak Rasayan and Talcher Fertilizers which consumed Rs. 518 crore. HURL's Gorakhpur plant has already started the production whereas Sindri and Barauni plants will become operational during the fiscal.

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