Coal India has set a CAPEX target of INR 17,000 crore for FY22

Coal India sets a CAPEX target of INR 17,000 crore for the FY 2021-22, with an increase of around 4,000 crores over last year’s spending.

Coal India Ltd has set a capital expenditure target of INR 17,000 crore for the fiscal year 2021-22, which is around 4,000 crores more than last year’s spending.

With rising coal demand and higher realizations from e-auction sales, the company expects cash flow to improve.

The total CAPEX for this year is INR 17000 crores. This includes investments of Rs 3,000 crore in Hindustan Urvarak and Rasayan Ltd. (HURL) and Talcher Fertilisers Ltd and INR 1,000-1,500 crore for construction of railway lines through a joint venture company, the CIL official stated.

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

HURL is setting up a 1.27 MTPA urea plant using natural gas in the premises of two closed fertilizer units of FCIL  at Gorakhpur in Uttar Pradesh and Sindri in Jharkhand, as well as the HFCL plant in Bihar.

For the current fiscal (2020-21), the state-owned miner has revised its capital expenditure budget to INR 13,115 crore from an initial estimate of 10,000 crores.

Due to the COVID-19 pandemic, the Centre directed PSUs to boost their capital expenditures to spur economic growth.

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