Coal India, a state-owned enterprise, disclosed a substantial 7.6% year-on-year increase in its capital expenditure (capex) during the April-November period, reaching ₹10,492 crore. This elevation in spending reflects the company's concerted efforts to narrow the investment gap and foster developmental initiatives.

Significantly, a substantial portion of the targeted capex for FY24, set at ₹16,500 crore, has already been deployed, amounting to ₹6,441 crore, mainly channelled into transport infrastructure projects. A senior executive emphasized their endeavour to achieve nearly 80% of the fiscal year's total capex by the end of the third quarter in December.

The allocation of investments has been diversified: ₹2,486 crore towards land acquisition and rehabilitation, ₹1,954 crore for procuring heavy earth-moving machinery, and ₹1,040 crore for venturing into domains like solar power, alongside collaborations with Hindustan Urvarak Rasayan Ltd and Talcher Fertilizers Ltd.

Highlighting the significance of capital expenditure for asset creation and future revenue, the executive underscored Coal India's vital role in constituting over 80% of the nation's domestic coal output.

The remainder of the capex was directed towards mine development, exploration, and prospecting, underscoring a departure from the previous norm of ₹6,000-7,000 crore in expenditure. This deviation had been spurred by an economic resurgence in FY22 post-pandemic, with capex soaring to ₹13,284 crore.

Anticipating a continued growth trajectory, the company aims to surpass its capex target for the fiscal year, a trend observed over the last three years. Despite this robust investment outlook, Coal India's shares on the BSE closed at ₹347.55 apiece on Tuesday, registering a 1.75% decline from the previous close.