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Coal India saved Rs 1,838 crore revenue expenditure in April-Dec 2020-21

Coal India saved Rs 1,838 crore revenue expenditure in April-Dec 2020-21New Delhi: State-run minerCoalIndia Ltd (CIL) today said it managed to save Rs 1,838 crore revenue expenditure, around 3.3 per cent of total capex, in the first nine months (April-December) of the current financial year even as production from opencast mines jumped 16.1 per cent.

“This is the sum of the over burden (OB) excavated and coal produced through opencast mines. CIL’s overall expenditure dropped to Rs 54,241 crore during the referred period from that of Rs 56,079 crore for the same period year ago, the decrease being 3 per cent,” the company said in a statement.

Overall, during the third quarter ended December 2020, the miner’s expenditure dropped while it clocked 6.3 per cent growth in output, 9.1 per cent surge in coal off-take and 17.3 per cent increase in over burden removal.

The reduction in expenditure was visible in employee benefit expenses which decreased by Rs 735 crore, including salaries of the employees, performance-related pay of executives, performance-linked reward of non-executives, coal mines provident fund contributions etc.

Also, there was less provisioning of stripping activity — an indicator of the quantity of OB removed for the required coal produced by — Rs 2,894 crore during the period. Overburden removal is one of the significant components of the expenditure.

“In the recent years CIL has become leaner shedding its flab through superannuation of around 13,000 employees per year. Its manpower stood at 2.72 Lakhs at the beginning of the current fiscal compared to 3.22 Lakh employees four years ago,” the company said.

During the nine months period of the current fiscal the company’s manpower reduced by 13,800. This reduction is expected to continue for few more years which would further shrink the employee benefit expenditure which currently stands close to 50 per cent of CIL’s overall revenue expenditure.

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