Coal India (CIL) on Tuesday announced that its capital expenditure increased by Rs 741 crore in eight months ending November FY24 to Rs 10,492 crore. This is 7.6 per cent higher in comparison to Rs 9,751 crore during the corresponding period last year, it said in a regulatory filing.

“We are striving to achieve around 80 per cent of the current financial year’s total targeted capex of Rs 16,500 crore by the third quarter ending December,” said a senior executive of the company.

Capex on acquisition of land and related rehabilitation followed at Rs 2,486 crore accounting for almost a quarter during April-November FY 2024. Procurement of heavy earth moving machinery (HEMM) reported Rs 1,954 crore. Diversification and joint ventures like Solar and Hindustan Urvarak Rasayan Limited and Talcher Fertilizers Limited together made up Rs 1,040 crore. The remaining capex heads were mine development, exploration, prospecting, ERP and other residuals.

“Land and HEMM are major capex heads that catalyze production growth. Having a robust coal evacuation infrastructure to transport increased volumes of coal in future is a priority where we are upping investments. Capital expenditure is important for asset creation and future revenue,” said the executive.

For FY 2024, similar to the previous financial year, bulk of CIL’s capex is focused on the three transport infra projects. Together these heads add up to Rs 6,441 crore out of the fiscal’s targeted capex of Rs 16,500 crore.

CIL’s capital expenditure which used to hover between six and seven thousand crore rupees took off sharply in FY 2022 to Rs 13,284 crore doubling over FY 2021 level. Since then the growth curve remained steady. During three successive financial years till FY 2023, CIL’s capex exceeded the budgeted target.

Capex usually surges up in the last quarter and CIL hopes to exceed this fiscal’s target as well, making it fourth year on the trot.