Coal India arm NCL plans capex of Rs 1,900 cr in FY23

Coal India-arm Northern Coalfields Ltd (NCL) on Wednesday said it has planned a capital expenditure of Rs 1,900 crore in the current financial year. To give a boost to infrastructure, most of the capex in the current financial year would be spent on the procurement of heavy earth moving machines (HEMMs), setting up coal handling plants and land acquisition, NCL CMD Bhola Singh said.
The company had scaled up its capex to Rs 1,750 crore in FY22, up 7 per cent from the set target of Rs 1,640 crore.

NCL is working on nine first mile connectivity (FMC) projects with an investment of Rs 3,174 crore. These projects will eliminate road transportation of coal with mechanised loading and enable the company to promote sustainable mining practices.

Two projects have already been commissioned and four others will be commissioned this year. Once completed, these FMC projects will help transport additional 55 million tonnes (MT) of coal through eco-friendly mode.

The company produced 10.81 MT of coal in April, registering a 26 per cent increase in April 2021. NCL produced 122.43 MT of coal while its offtake was at 125.66 MT in the last fiscal.

NCL contributes 20 per cent to Coal India's total production. Coal India accounts for over 80 per cent of the domestic coal output.