Driving Economic Resilience: Coal PSUs’ Achieved CAPEX and Asset Monetisation Target

Under the administrative direction of the Ministry of Coal (MoC), coal PSUs have led the way in investing capital expenditures (CAPEX) to support and contribute to the transformation of the Indian economy. Coal CPSE has been exceeding the CAPEX target for the last few years.

Coal PSUs had met their goal in FY 2021–22 with a 104.86% success rate. A similar result was obtained by coal PSUs in FY 2022–23, reaching about 109.24% of the target. Over the past three years, coal PSUs’ CAPEX has consistently increased year over year.

For FY 2023-24, the capex target of the Ministry of Coal was ₹21,030 crore. Coal PSUs, Coal India Limited (CIL) and NLC India Limited (NLCIL) have already surpassed the FY 2023-24 target by making a record capex of ₹22,448.24 crore, i.e., 106.74% of the annual target by February 2024. With significant CAPEX investments materialising in the last two months of the fiscal year, it is anticipated that both CIL and NLCIL will add to their achievement, further strengthening 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, and demand and spurring industrial growth, creating employment and long-lasting infrastructure from which durable benefits accrue to the country over a long period of time.

Asset Monetisation

The Government of India’s ambitious goal to monetise underutilised assets through its flagship initiative, Asset Monetization, which began in FY 2021–22, has been surpassed by the Ministry of Coal. In FY 2023-24, MoC has achieved Asset Monetization of ₹55,148.33 crore till February 2024 against its target of ₹50,118 crore. Overall achievement under Asset Monetization is as follows:

Procurement Through GeM (Government E-Marketplace)

The target fixed by GeM for MOC (including its CPSEs) for procurement of Goods and Services through GeM was ₹4000 crore for FY 2022-23. MOC achieved and surpassed the target with ₹4,278 crore, which is 107%.

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