State-owned Coal India on Wednesday said it has scaled up its capital expenditure (capex) budget for the ongoing fiscal by an additional Rs 3,000 crore, revising it to Rs 13,000 crore.
The increase in capex comes at a time when the government has directed central public sector undertakings (PSUs) to step up their capex to stimulate economic activity.
"This represents 30 per cent jump over CIL's original capex target of Rs 10,000 crore for 2020-21," Coal India Ltd (CIL) said in a statement.
Of the additional Rs 3,000 crore capex budget, South Eastern Coalfields Ltd, the largest coal producing subsidiary of CIL, accounts for Rs 800 crore, followed by CIL headquarters with Rs 585 crore and Mahanadi Coalfields Ltd with Rs 550 crore.
Central Coalfields Ltd (CIL) takes up Rs 460 crore, it said.
CIL had posted a 166 per cent rise in its capex during the first nine months of the current fiscal at Rs 7,801 crore.
Compared to Rs 2,930 crore capex that the company clocked during April-December period of 2019-20, the actual spend was up by Rs 4,871 crore in the corresponding period of FY21.
In the process, CIL had utilised 78 per cent of its total original capex budget during April-December period of the current fiscal.
CIL was directed by the government to achieve Rs 7,500 crore capex utilisation by the closure of December against which the actual capex utilisation was Rs 7,801 crore, which is Rs 301 crore more, the company said.
"CIL's capex for the current year's Q3 as well, ending December 2020, at Rs 2,778 crore posted a strong 90 per cent growth against Rs 1,463 crore of same quarter last year. The increased spend during the third quarter was Rs 1,315 crore," it said.
During the second quarter of the current financial year, CIL had logged a 312 per cent growth in capex, while the growth was 86.5 per cent during the first quarter.
CIL's capex during the current financial year makes it one of the top spenders among the Indian PSUs, the company said.
Its land possession and civil construction jobs, among other activities, were hamstrung during the Covid-19-led slowdown. Subsequently, headway could be made with the situation improving post unlock, nudging its increased capital expenditure.
"CIL will be closely monitoring the progress of the capital expenditure to achieve the revised target of Rs 13,000 crore in the current FY (financial year)," it said.
CIL accounts for over 80 per cent of domestic coal output.