InvestorQ : Is it true that Coal India is planning to substantially increase its CAPEX for the current year?
Katherine Gonsalves made post

Is it true that Coal India is planning to substantially increase its CAPEX for the current year?

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rhea Babu answered.
8 months ago
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Late last year, the finance minister Nirmala Sitharaman had exhorted all the PSUs to come forward and enhance and even front-end their capital spending. The idea was that the profitable public sector companies should lead the capital spending initiative so that the private sector can also gradually follow suit.

In accordance with the indications given by the government, Coal India plans to increase its capital expenditure for the current year by 30% from Rs.10,000 crore to Rs.13,000 crore. This could trigger a spate of capital spending across the economy, in the process, giving a boost to economic activity. Its spillover effects are already well known.

The revised capex plan of CIL will make it one of India’s biggest PSU investors in the current financial year. Coal India plans to focus its capex for the year on areas like land acquisition, procurement of heavy earth moving machinery, upgrading rail evacuation infrastructure and mine development. Capex was quite low in 2019-20 and on a YOY basis, the capex is up by almost 166%, which represents a huge jump.

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