Latest News | Coal India Aims at Rs 40,000-50,000cr Capex in 4-5 Years: Chairman

Kolkata, Nov 24 (PTI) Coal India Ltd on Wednesday said the company is aiming at investing Rs 40,000-50,000 crore as capital expenditure in the next 4-5 years.

Also Read | West Bengal Horror: Jilted Lover Beheads 15-Year-Old Girl for Allegedly Rejecting Him in Alipurduar.

The Rs 17,000-crore capex (capital expenditure) for the current fiscal is "on track", CIL chairman Pramod Agrawal told investors.

Also Read | Mozilla To Reportedly End Support for Firefox Lockwise Password Manager Next Month.

He also acknowledged that price revision is "inevitable" and this may happen soon.

"We have spent Rs 7,000 crore capex so far and our Rs 17,000-crore target for the current fiscal is on track. We will invest around Rs 40,000-50,000 crore in the next 4-5 years,” he said.

Most of the incremental capex will go into coal production and evacuation, he said.

Asked about a mismatch between EBITDA (earnings before interest, taxes, depreciation, and amortisation) and the increased capex of the miner, he said, "Our industry (mining) is not like any manufacturing entity in which an increase in capital expenses will translate into higher EBITDA. We have to carry out such expenditure to maintain production. Since last year only, we have invested heavily in production and evacuation," he said.

The Maharatna company said the capital expenditure plan will not be affected due to a fall in receivables as it has "enough cash flow" to manage the investments.

As of October, the receivables of the coal behemoth were at Rs 12,000 crore, down from Rs 19,000 crore in March 2021. PTI BSM

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)