New Delhi [India], March 9 (ANI): State-owned companies operating in the coal sector have made capital expenditure spending worth Rs 22,448 crore as of February of 2023-24, overshooting the target of Rs 21,030 crore.
“By Feb 2024, coal PSUs have already surpassed the FY 2023-24 target by making record capex of Rs 22,448.24 Cr i.e. 106.74 per cent of the annual target,” said a Ministry of Coal press release.
Coal PSUs under the administrative control of the Ministry have been at the forefront of capital expenditure to assist and contribute to transforming the Indian economy. Over the past few years, Coal companies have been overachieving the capex target.
In the financial year 2021-22, coal PSUs achieved 104.86 per cent of their target. Similar performance was repeated in 2022-23 where coal PSUs achieved around 109.24 per cent of its target. There has been consistent year-on-year growth in capital expenditure over the last three years.
Capex is one of the crucial components of the economic dynamics, which has a multiplier and trickle-down impact on the overall economy boosting consumption, demand and spurs industrial growth, creating employment and long-lasting infrastructure from which durable benefits accrue to the country over a long period.
A capital expenditure, or capex, is used to set up long-term physical or fixed assets.
Meanwhile, the Ministry of Coal aims to produce 186.63 million tonne (MT) coal exclusively from captive or commercial coal mines during 2024-25.
Production will be further stepped up to 225.69 million tonne during 2025-26 and as per the present plans of the Ministry, production target from such mines will be touching 383.56 million tonne by 2029-30.
Coal production and dispatch from captive and commercial coal blocks attained a remarkable growth during the April-December 2023 period. The total coal production from captive and commercial coal mines during the period stood at 98 million tonne. (ANI)
This report is auto-generated from ANI news service. ThePrint holds no responsibility for its content.