Coal India may fall short of its capex target for the fiscal

Coal India Limited (CIL) may be able to spend only Rs. 4,751 crore during the current fiscal as against budgetary estimate of Rs. 5,000 crore for the year. In other words, CIL may be able to achieve only 95.02% of budgeted capex for the year. CIL has incurred a total expenditure of Rs. 3,013.73 crore upto January 2014 as against budget estimate of Rs. 3,832.24 crore. CIL plans to spend Rs. 1,737.27 crore during the two month period of February and March.

Some of the subsidiaries are likely to exceed their budgeted capex for the year while others may fall behind their targets. For example, Mahanadi Coalfields Ltd (MCL) is expected to spend Rs. 950 crore during the year which will be 190% of the capex target, thanks mainly to enhanced land compensation. Central Coalfields and South Eastern Coalfields too are expected to achieve their targeted capex for the year.