State-owned Coal India Ltd (CIL) increased its capital expenditure by 27% year-on-year (YoY) to ₹7,966 crore in the first half of the current financial year, exceeding its stipulated target of ₹7,286 crore for the period.

The miner has utilised more than 48% of its annual capital expenditure outlay of ₹16,500 crore, reflecting a strong investment push towards strengthening mining infrastructure, expanding operational capacity and improving coal evacuation.

Mine infrastructure development, land acquisition, plant and machinery, and diversification together accounted for 79% of the expenditure during the April-September period.

“These strategic investments are expected to strengthen the company’s operational capabilities and support the achievement of its production and supply targets for the ongoing financial year,” Coal India said.

Mine infrastructure development accounted for the largest share of capital expenditure at ₹2,152 crore. The investments were directed primarily towards strengthening coal evacuation and handling infrastructure, including railway sidings and corridors, coal handling plants (CHPs), silos and weighbridges.

Land acquisition was the second-largest expenditure head, accounting for ₹2,033 crore during the first half. The company also spent more than ₹1,000 crore on mine development to facilitate the expansion and operational readiness of mining projects.

The Kolkata-headquartered miner invested ₹1,394 crore in plant and machinery (P&M), including ₹452 crore towards the purchase of heavy earth-moving machinery (HEMM). The remaining expenditure was incurred on washeries and other plant and machinery.

With nearly half of its annual capital expenditure already deployed, Coal India’s investment programme is focused on augmenting mining capacity and addressing potential infrastructure bottlenecks that can constrain production and coal movement. The emphasis on evacuation infrastructure is particularly significant as the company seeks to align its production and supply targets with the capacity to transport coal efficiently.