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Coal India aims for an investment of Rs 40,000 to 50,000 Cr in 4 to 5 years: chairman

Coal India Ltd said on Wednesday that the company aims to invest Rs 40,000 to 50,000 crore as a capital expenditure over the next 4 to 5 years. The capex (capital expenditure) of Rs 17,000 crore for the current fiscal year is “on track,” CIL Chairman Pramod Agrawal told investors.

He also acknowledged that the price revision is “inevitable” and that it could happen soon. “We have so far spent Rs 7,000 crore on investment and our target of Rs 17,000 crore for the current fiscal year is on track. We will invest around Rs 40,000 to 50,000 crore over the next 4-5. years, ”he said.

Most of the additional investment will go into the production and disposal of coal, he said. Asked about a mismatch between EBITDA (earnings before interest, taxes, depreciation and amortization) and the increase in the miner’s investments, he said. “Our industry (mining) is unlike any manufacturing entity in which an increase in capital spending will translate into an increase in EBITDA. We have to make such spending to maintain production. As of last year alone. , we have invested heavily in production and disposal, “he said.
The Maharatna company said the capital spending plan would not be affected due to lower receivables because it has “enough cash flow” to handle the investments. In October, the coal giant’s claims stood at Rs 12,000 crore, up from Rs 19,000 crore in March 2021.

First publication: STI


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