Coal news and updates

State-owned Coal India (CIL) has informed the government that it is hopeful of achieving this fiscal's 2014 capital expenditure target of Rs 9,000 crore.

 

The company had missed its capex target of last fiscal. "(Coal India) CMD ( S Narsing Rao) informed that PSU is hopeful of achieving the annual capex targets...for the year 2013-14," an official document said.

 

Rao also informed Finance Minister P Chidambaram during a meeting that the company would pay dividend of Rs 7,958 crore for the year fiscal 2013-14.

 

The world's largest coal producer had achieved a capex of Rs 1,650 crore in the second quarter of the current fiscal against the target of 1,952.20 crore, the document said.

 

CIL had in FY 2012-13 achieved the capex of Rs 2,920.23 crore against the target of Rs 10,275 crore.

 

"FM also indicated that the capex position at the close of the third quarter of the current fiscal will be reviewed during January, 2014. In case of shortfall in the targeted capex, Ministry of Finance may ask the PSU concerned to declare special dividend," the document said.

 

The Finance Minister reviewed that position regarding cash balances, reserves, dividend payouts and capex as on September, 2013 for the ongoing financial year.

 

CIL had also informed during the meeting that the company's cash/bank balance in the last fiscal stood at Rs 62,236 crore and reserves of Rs 39,826 crore.

 

The state-owned coal miner accounts for over 80 per cent of the India's coal production. The Coal Ministry has set a production target of 482 million tonnes (MT) and offtake of 492 MT for CIL for 2013-14. 

 

Source: PTI