Coal PSUs operating under the purview of the Ministry of Coal have emerged as key contributors to India’s economic transformation. Over recent years, these entities have demonstrated exceptional performance in fulfilling their capital expenditure (CAPEX) commitments, playing a pivotal role in driving the nation’s growth agenda.
In the fiscal year 2021-22, both Coal India Limited (CIL) and NLC India Limited (NLCIL) surpassed their CAPEX targets, achieving an impressive 104.88% and 123.33% respectively. This trend continued into FY 2022-23, with both PSUs maintaining their stellar performance, achieving approximately 113% of their CAPEX targets.
As the Ministry of Coal sets a CAPEX target of 21,030 Crore for the fiscal year 2023-24, the progress as of January 2024 stands at 95.83%, indicating significant strides towards meeting annual goals. With Coal PSUs consistently demonstrating robust performance, there is optimism that both CIL and NLCIL are well-positioned to exceed their CAPEX targets yet again by the end of the fiscal year.
The significance of CAPEX in driving economic dynamics cannot be understated. It catalyzes growth, generating multiplier effects that stimulate consumption, demand, and industrial expansion. Moreover, CAPEX initiatives contribute to the creation of employment opportunities and the development of enduring infrastructure, which yields long-term benefits for the nation.
As Coal PSUs continue to spearhead CAPEX investments, India’s economic landscape is poised for sustained growth and development. With the anticipation of surpassing annual targets, these efforts underscore the critical role of strategic investments in fostering prosperity and resilience in the Indian economy.
