Public Sector Coal Companies Surpass 106% of Capital Expenditure Target for 2023-24

State-owned coal sector enterprises have expended capital worth Rs 22,448 crore as of February in the fiscal year 2023-24, exceeding the target set at Rs 21,030 crore.

According to a press release from the Ministry of Coal, as of February 2024, coal Public Sector Undertakings (PSUs) have already surpassed the fiscal year 2023-24 target by achieving a record capital expenditure of Rs 22,448.24 crore, which is 106.74% of the annual target.

The coal PSUs under the administrative purview of the Ministry have been leading in capital expenditure endeavors, playing a vital role in transforming the Indian economy. Over recent years, these coal companies have consistently exceeded their capital expenditure targets. In the financial year 2021-22, they achieved 104.86% of their target, followed by around 109.24% achievement in 2022-23. This demonstrates a consistent year-on-year growth in capital expenditure over the last three years.

Capital expenditure, commonly known as capex, is instrumental in establishing long-term physical or fixed assets. It plays a crucial role in the economic dynamics, having a multiplier effect and trickling down to impact the overall economy by boosting consumption, demand, and industrial growth, while also creating employment opportunities and fostering the development of long-lasting infrastructure that brings enduring benefits to the country over an extended period.

Meanwhile, the Ministry of Coal has set ambitious targets for coal production from captive or commercial coal mines. The aim is to produce 186.63 million tonnes (MT) of coal exclusively from such mines during the fiscal year 2024-25. This production target is projected to increase to 225.69 million tonnes in 2025-26, with plans in place to touch 383.56 million tonnes by 2029-30.

During the April-December 2023 period, there was remarkable growth in coal production and dispatch from captive and commercial coal blocks. The total coal production from these mines during this period reached 98 million tonnes.