Coal India announced on Wednesday that it has accomplished 28.3% of its planned annual capital expenditure of Rs 16,600 crore for the fiscal year 2023-24 in the first four months. This gives the state-owned mining company an early advantage as it aims to increase production for the fiscal year.

During the period from April to July, the capital expenditure reached Rs 4,700 crore, reflecting an 8.5% growth compared to Rs 4,332 crore during the same period in the previous fiscal year (FY23). A significant portion of the capital expenditure is allocated to the development of evacuation infrastructure, land acquisition, and the procurement of mining machinery.

In a statement on Wednesday, Coal India explained that the initial quarter typically witnesses a slow start in capital expenditure as the company outlines its expenditure plans at the beginning of the fiscal year. The company noted that the 8.5% growth in capital expenditure is noteworthy, especially considering the high base of Rs 4,332 crore in the same period of FY23. During FY23, Coal India's capital expenditure reached an all-time high of Rs 18,619 crore.

A senior official from Coal India highlighted that the company has significantly increased its capital expenditure over the past three years, rising from Rs 6,270 crore in FY20 to Rs 18,619 crore in FY23. This increase aligns with the government's direction for Central Public Sector Enterprises (CPSEs) to enhance their capital expenditure to support economic recovery.

Among the major expenditures, land acquisition accounted for Rs 1,311 crore, representing 28% of the total capital expenditure during April-July 2023. The procurement of heavy earth-moving machinery followed, amounting to Rs 1,083 crore or 23%. Additionally, Rs 664 crore and Rs 572 crore were spent on constructing rail sidings, rail corridors, coal handling plants, and silos to facilitate efficient coal evacuation.

For the ongoing fiscal year, Coal India has allocated Rs 2,907 crore for land acquisition.