CIL may not be as rich as is thought to be
The state-owned Coal India Limited´s (CIL) hefty bank balance of nearly Rs.60,000 crore as carried in the company´s consolidated balance sheet has fascinated successive governments for long. They have repeatedly advised CIL to part with the money in form of attractive dividends. However, a close look at the accounts will reveal that CIL is currently left with Rs.20,000 crore only as actual cash balance, including around Rs.8,000-9,000 crore for working capital after paying off the year´s dividends. In fact, it does not have enough funds to carry out its capex plans, which include opening new mines, expansion projects, railways and a 1,000-MW solar generation project.
Contact: Coal India Limited