Big capex spending by coal producers
Ministry of Coal https://unfccc.int/ has outperformed in the Govt’s ambitious plan of monetizing underutilized assets in its flagship programme of Asset Monetization started in FY 2021-22.
Overall achievement under Asset Monetization is as follows:
In 2021-22, the target was Rs.3,395 crore but Rs.40,104.64 crore was spent;
In 2022-23, the target was Rs.30,000 crore but Rs.57,179.99 crore was spent;
In fact, cumulatively for FY 2021-22 to 2022-23, the Ministry accounts for nearly half of the total monetization achieved under Government’s Asset Monetization Plan (AMP) https://mnre.gov.in/.
Further in FY 2023-24, till February 2024 itself Ministry of Coal has achieved its AMP Target. The Ministry has achieved Asset Monetization of Rs.55,148.33 crore till Feburary 2024 against its target of Rs.50,118 crore.
The Ministry’s CAPEX target for 2023-24 is Rs.21,030 crore. By Feb 2024, coal PSUs https://www.coalindia.in/ have already surpassed the FY 2023-24 target by making record capex of Rs.22,448.24 crore i.e. 106.74% of the annual target.
With major CAPEX investments materializing in the last two months of the fiscal year, it is anticipated that both CIL and NLCIL https://greendindia.com/ will add to their achievement, further bolstering India’s economic growth trajectory.
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, creates employment and long-lasting infrastructure from which durable benefits accrue to the country over a long period of time, said the Coal Ministry on 10 Mar 2024. Fiinews.com
