Shares of Coal India settled 1.86 percent higher at Rs 159.10 each on the BSE.State-run Coal India on Wednesday said that the company is targeting at investing Rs 40,000-50,000 crore as capital expenditure in the next 4-5 years.
The Rs 17,000-crore capital expenditure for the present fiscal is on track , said Coal India's chairman Pramod Agrawal, according to news company PTI.
He likewise highlighted that the price revision is inevitable and may happen quickly.
We have actually spent Rs 7,000 crore capex up until now and our Rs 17,000-crore target for the present fiscal is on track.
We will invest around Rs 40,000-50,000 crore in the next 4-5 years.
The majority of the incremental capex will enter into coal production and evacuation , he said.On the inequality between EBITDA (incomes before interest, taxes, depreciation, and amortisation) and the increased capex of the miner, the chairman stated that the mining industry is not like any manufacturing entity in which an increase in capital expenditure will translate into greater EBITDA.
We have to carry out such expense to preserve production.
Since in 2015 only, we have actually invested heavily in production and evacuation, said Mr Agrawal.The world's biggest coal producing company said that the capital investment plan will not be affected due to a fall in receivables as it has adequate capital to handle the investments.
Since October 2021, the receivables of the coal refiner were at Rs 12,000 crore, down from Rs 19,000 crore in March 2021.
On Wednesday, November 24, shares of Coal India settled 1.86 percent higher at Rs 159.10 apiece on the BSE.
Coal India opened on the BSE at Rs 158.50, registering an intra day high of Rs 161.60 and an intra day low of Rs 155.65, throughout the trading session today.