Rather, it has recommended empowerment of its subsidiaries in its report, submitted to the government in December 2014.
“Several options regarding the restructuring of Coal India were discussed. It was agreed that no major restructuring is required, at least in short term,” said the report.
In the new set of targets for the energy sector, Modi led government has earmarked 1 billion tonne of coal production from CIL by 2019. This would entail a growth of over 18-20% annually for the state mining giant, which currently is at 7-10%.
“In the subsequent two quarters growth rates of 15% could be a big challenge. It would therefore be necessary that specific action plans on various identified constraints made and monitored,” highlighted the report.
For enhancing coal production, the report suggests hiring of ‘Mining Development Operation (MDO)’ agencies and re-opening abandoned underground mines.
“Ministry of coal to give target to each subsidiary to engage at least two MDOs (10 million tonne annual production) each, within six months,” said the report.
The committee has asked for close monitoring of CIL targets for 2014-15, on a fortnightly basis. Also, engage experienced consultative agency which could assist in monitoring performance.
To address availability of coal, the report underlines the need of swapping of coal, rationalisation of coal linkages and monitoring of surplus coal sale from captive mines.
Among the other major suggestions are improving coal evacuation facilities by forming a separate CIL subsidiary for logistics services, including rail connectivity.
The report pushes the idea of private investment and joint ventures by CIL and its subsidiaries in rail linkage projects, to reduce dependence on Indian Railways. It also mentioned setting up of dedicated common rail corridor serving to a cluster of mines in coal rich areas.
The government promulgated Coal Ordinance (Special Provisions) bill, 2014 in October last year, after the Supreme Court cancelled 204 coal block allocations made over the past two decades.
The report hence emphasised on getting a ‘coal regulator’ “through legislative route, including ordinance to address issues involving various stakeholders.”
For more coal:
· Improvement in performance parameters of CIL subsidiaries – CCL, MCL, SECL, ECL, WCL
· Hire at least two MDOs within six months
· Close monitoring of CIL’s annual targets
To make more coal available:
· Separate CIL subsidiary for building evacuation including rail lines
· Joint venture with private companies to build rail links
· Dedicated rail corridor for a mine cluster
Word of caution on Coal Block Auction
· Reserve bid price vulnerable to controversy & cartelisation
· Power tariff should be cost reflective