Coal India Ltd (CIL) registered 118 per cent growth in capex at ₹1,840 crore in Q1FY22 as it stepped up investments in evacuation infrastructure, land acquisition and procurement of heavy equipment. The capex for the same period last year was ₹844 crore.

The company has achieved 94 per cent of the progressive target of ₹1,960 crore, set for the first quarter of this fiscal.

Procurement of heavy earth moving machinery (HEMM), plant and other machinery that would help in ramping up output through OC mines continued to top the capex list at ₹670 crore during April-June 2021. Land acquisition accounted for ₹268 crore.

CIL has invested close to ₹504 crore for strengthening evacuation infrastructure like setting up rail sidings and corridors, coal handling plants, (CHP), silos and haul roads. This is an increase of 109 per cent over Q1FY21.

CHP and silo loading would help save considerable expenses for CIL apart from having environment benefits. CIL aims to move around 415 million tonne (mt) of coal through mechanized means through 35 first mile connectivity projects by FY’24.

CIL has pegged its capex target at ₹17,000 crore for FY22 which is a 28 per cent increase over the actual capital expenditure of ₹13,284 during FY21.

Of the entire targeted capex of FY22, evacuation infrastructure leads the list with more than one-third at nearly ₹5,950 crore. Other major heads include HEMM, plant and machinery with ₹3,560 crore. Joint venture projects, including Talcher Fertilizers Ltd and Hindustan Urvarak&Rasayan Ltd, solar and others will make up around ₹3,200 crore. Land acquisition will take up around ₹2,700 crore, CIL said in a press statement.