“Coal India Aims Rs 40,000-Rs 50,000 Crore Capex In Next 4-5 Years”: Chairman

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Coal India shares rose 1.86% to 159.10 rupees each on BSE.

Coal India, a state-owned company, said on Wednesday that the company aims to invest Rs 40,000 to 50,000 crore as capital expenditure over the next 4 to 5 years. Capital expenditure of Rs 17,000 crore for the current fiscal year is “on track,” Coal India Chairman Pramod Agrawal said, according to the PTI news agency. He also stressed that the price revision is “inevitable” and could happen soon.

“We have spent 7,000 crore rupees so far and our target of 17,000 crore rupees for the current fiscal year is on track. We will invest around 40,000 to 50,000 crore rupees over the next 4-5. Most of the additional investment will go into charcoal production and disposal, ” he said.

Regarding the mismatch between EBITDA (earnings before interest, taxes, depreciation and amortization) and the miner’s increase in investments, the president said the mining industry is not like a manufacturing entity in which an increase in capital expenditure will result in an increase in EBITDA. .

“We have to make such expenses to maintain production. Since last year alone, we have invested heavily in production and disposal, ”said Mr. Agrawal.

The world’s largest coal-producing company said the capital spending plan would not be affected due to lower receivables because it has “enough cash flow” to handle investments. In October 2021, the coal refiner’s claims stood at Rs 12,000 crore, compared to Rs 19,000 crore in March 2021.

On Wednesday, November 24, Coal India shares rose 1.86% to Rs 159.10 each on BSE. Coal India opened on BSE at Rs 158.50, recording an intra-day high of Rs 161.60 and an intra-day low of Rs 155.65, throughout today’s trading session .

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