Coal sector PSUs poised to cross Rs 21,030 crore Capex target for 2023-24

The capital expenditure (CAPEX) by public sector coal companies has touched 20,153 crore as of January this year, marking 95.83 per cent progress towards the target of 21,030 crore fixed for the current financial year ending on March 31, 2024, the Coal Ministry said on Wednesday. “Coal sector PSUs (public sector undertakings) have been at the forefront with their CAPEX to assist and contribute in transforming the Indian economy and as we navigate through the current fiscal year of 2023-24, both CIL and NLCIL are on track to exceed their CAPEX targets yet again,” the ministry said.

CAPEX is one of the crucial parts of the economic dynamics, which has a multiplier and trickle-down impact on the overall economy boosting consumption, and demand and spurring industrial growth, creating employment and long-lasting infrastructure from which durable benefits accrue to the country over a long period. Over the past few years, Coal CPSEs have been overachieving the CAPEX Target.

In FY 21-22, CIL & NLCIL had achieved 104.88 per cent & 123.33 per cent respectively of their target. Similar performance was repeated in FY 2022-23 where both Coal CPSEs achieved around 113 per cent of its target.