Coal PSUs Surpass CAPEX Targets for Third Consecutive Year

Coal PSU’s under the administrative control of MoC have been at the forefront of doing CAPEX to assist and contribute in transforming Indian economy. Over the past few year Coal CPSE has been over achieving the CAPEX Target.

In FY 21-22, Coal PSU’s had achieved 104.86% their target. Similar performance was repeated in FY 2022-23 where coal PSUs achieved around 109.24% of its target. There has been consistent YoY growth in CAPEX by Coal PSU’s over last 3 years.

The Ministry of Coal's CAPEX target for 2023-24 is 21,030 Crore. By Feb 2024, coal PSUs have already surpassed the FY 2023-24 target by making record capex of Rs. 22448.24 Cr 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 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.

ASSET MONETIZATION

Ministry of Coal has outperformed in the Govt of India’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 fact, cumulatively for FY 2021-22 to 2022-23 Ministry of Coal accounts for nearly half of the total monetization achieved under Government of India’s Asset Monetization Plan.

Further in FY 2023-24, till February 2024 itself MoC has achieved its AMP Target. MoC has achieved Asset Monetization of Rs. 55148.33 Cr till Feburary 2024 against its target of Rs. 50118 Cr.

PROCUREMENTS THROUGH GEM

For FY 2022-23, the target fixed by GeM for Ministry of Coal (including its CPSEs) for procurement of Goods & Services through GeM was Rs. 4000 crore. The achievement against the target was Rs. 4,278 Crores, which is 107%.

The following awards were bestowed upon Ministry of Coal, CIL & NLCIL by the Minister of Commerce & Industry in the ceremony held on 26.06.2023:

“Best Engagement”- Ministry of Coal

“Rising Star” – Coal India Limited

“Timely Payments (CPSEs)” – NLC India Limited

For FY 2023-24, the actual procurement through GeM is Rs 88,518 crores (till 02 March, 2024) which is 415% of target of Rs 21,325 Crores.

Ministry of Coal is at 1st Position in the overall procurement through GeM among all the Central Ministry / Departments. Coal India Limited (including subsidiaries) is at TOP position in GeM procurement among all CPSEs (till 02.03.2024).