Coal Public Sector Undertakings (PSUs) in India met their capital expenditure (CAPEX) targets for the financial year 2023-24, with an impressive achievement of 95.83% as of January 2024. According to a statement released by the Ministry of Coal, these PSUs have collectively reached Rs 20,153 crore out of the targeted Rs 21,030 crore for the fiscal year.
The remarkable performance of Coal CPSEs (Central Public Sector Enterprises) in surpassing CAPEX targets has been consistent in recent years. In the previous fiscal years of 2021-22 and 2022-23, entities such as Coal India Limited (CIL) and NLC India Limited (NLCIL) surpassed their respective targets by wide margins, achieving 104.88% and 123.33% in FY 21-22 and around 113% in FY 2022-23.
As the current fiscal year progresses, both CIL and NLCIL are poised to exceed their CAPEX targets yet again, as affirmed by the Ministry of Coal. With significant CAPEX investments anticipated in the final months of the fiscal year, the ministry expects these entities to further surpass their annual goals, which is expected to contribute positively to India's economic growth trajectory.
CAPEX plays a crucial role in economic dynamics, with its multiplier effect driving consumption, demand, industrial growth, and employment generation. Moreover, it leads to the creation of long-lasting infrastructure, providing enduring benefits to the country over time.
In a related development, the Ministry of Coal has reported a notable decline of 4.75% in the National Coal Index (NCI) for the month of December compared to December 2022, with the index standing at 155.44 points. This decline indicates ample availability of coal in the market to meet growing demands, as per the ministry.
The National Coal Index (NCI) serves as a comprehensive price index, encompassing coal prices from all sales channels, including notified prices, auction prices, and import prices. It considers prices of both coking and non-coking coal of various grades transacted in regulated and non-regulated sectors, providing a holistic view of coal market dynamics.
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