Companies & Sectors
Restructured Coal India may help increase production
The mammoth task of restructuring Coal India has to be done on a war footing, starting with making its subsidiaries totally independent profit centres
 
The new government takes over official control after the swearing in ceremony on 26th May, when the portfolios will be announced and new Ministers take over control of their new ministries and responsibilities. If press reports are to be believed, there are very good chances that many of the ministries may be amalgamated into a single large unit to cover major areas.  For instance, it is believed that a Ministry of Power may be established that would take care of power generation in any form, though, it is likely to have sub-divisional heads to control, guide and operate the
given area.
 
One of the important issues that is likely to be taken on hand relates to whether Coal India Ltd (CIL), the world's largest coal miner, be allowed to run the way it has been for so many years now, or should it be restructured, in order to ensure greater domestic production and reduced dependence on imports of coal. 
 
Coal India, as the largest coal miner in the world, accounts for meeting 80% of India's needs. As a Holding company, it controls the following companies:
 
1. Eastern Coalfields Ltd (ECL) - Sanctoria, West Bengal
 
2. Bharat Coaking Coal Ltd (BCCL), Dhanbad, Jharkhand
 
3. Central Coalfields Ltd (CCL), Ranchi, Jharkhand
 
4. South Eastern Coalfields Ltd (SECL), Bilaspur, Chhatisgarh
 
5. Western Coalfields Ltd (WCL), Nagpur, Maharashtra
 
6. Northern Coalfields Ltd (NCL) Singrauli, Madhya Pradesh
 
7. Mahanadhi Coalfields Ltd (MCL), Sambalpur, Odisha
 
It may be noted that Coal India has interest in Coal India Africana Limitada, in Mozambique.  Coal India's consultancy is done by Central Mining Planning and Design Institute Ltd (CMPDI), Ranchi, Jharkhand.
 
Coal India's Chairman and Managing Director (CMD), S Narasing Rao, IAS, will soon relinquish his position and move on to Andhra to be the chief secretary of the chief minister there.  So, with his going away to a new posting, all the experience and knowledge that he gained in the coal industry will be lost and the new government will now have to nominate the new CMD to take over the job, and, unless he has sufficient background knowledge in the coal mining industry, he will have to start all over again to acquire the same.
 
During his tenor, although CIL faced and continues to face a lot of difficulties, in terms of land aquisition issues, inadequate supply  of racks, evacuation problems from pitheads, environmental clearances, politically motivated agitations besides red tape, Coal India managed to produce some 452 million tonnes.  During this period, production was also lost due to cyclone Phalin and flooding in the monsoon period.  Work on the dedicated corridors are moving at a slow space and due to government intervention, Narasing Rao had to sign 172 FSAs (Fuel Supply Agreements) for ensuring coal supplies for power generators to produce 78,000 MW, though coal production was falling behind targets!
 
It may be noted that our mines still are not modern, like their overseas counterparts, with latest mining equipment and technology.  In the meantime, our ambitious plans need coal supply of 530 million tonnes in 2014-15, 575 million tonnes in 2015-16 and 615 mt in 2016-17. We do not, unfortunately, have the capacity to reach these figures unless radical changes are made in the organisation and its approach to the various problems that confront its it, and act as stumbling blocks, details of which have been stated as above.
 
The mammoth task of restructuring Coal India has to be done on war footing. First, and foremost, is that the seven coal mining units, mentioned above, need to be made as totally independent profit and production supply centres, run by technocrats who have years of experience in the coal mining industry.  
 
Among the magnificent seven mentioned above, two units, namely, South Eastern Coalfields Ltd and Mahanadhi Coalfileds Ltd, are mining annually over 100 million tonnes each, joining a few others in the same league overseas. If they can maintain this tempo and production, there must be some serious flaw in our other five units which may be due to the various causes mentioned above.  These obstacles have to be surmounted at all costs, and the government must ensure that the posts of CMDs are not for those not qualified to run such establishments.
 
The new government has also indicated that they are not averse to foreign direct investment (FDI) in the industry.  Why not selectively get in touch with the top miners in the world and invite them to invest in the country? They may be permitted to import the latest machinery and technology that goes with it but ensure increased production of much needed coal.
 
Coal India has cash reserves of over Rs60,000 crore. As the first step in the restructuring of the organisation, they need to reduce the government holding to 26% and pay off from the cash reserves.  Next, would be to spin off all these seven companies into totally independent entities, by awarding to the existing shareholders of Coal India. Those coal blocks, which were taken back may now be auctioned through open tendering process, in line with same procedure adopted for oil and gas blocks that have been successful so far.  Captive blocks given by the government to power generators must now have a time frame to perform, and this may call for a total elimination of the MOEF in the current form, and replace it by a more practical ministry that may be directly controlled by the concerned State Government, to whom a clear cut term of reference be given along with national guidelines.
 
This is not a small task to achieve, but steps can be taken by the new government in these directions, taking into account what a Core Advisory Committee (CAC) to the Prime Minister can do on such matters of national importance.
 
(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce. He was also associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US.)

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COMMENTS

Dr Anantha K Ramdas

3 years ago

In response to Mr Raghunathan, may I mention that as a shareholder of the company, and interested in its development, and wanting to know what are the problems, I did get in touch with one of the seven units and the Secretary of the organization, based in Kolkata.

I suggest you write to mr Viswanathan the Secretary in Kolkata or write to any CEO of the seven organizarion listed.

After you get any response please do write again.

Sorry to say this, but the fact remains that people in the top in our country do not respond to aam aadmi, including shareholders, as they think it it is below their dignity to respond to genuine enquiries.

Please do not talk about fashion. Please do write to any top guys in the companies in which you are a shareholder and see how they respond. Kindly let me know when you are successful. If you do, it will be an extremely exception case.

We need dedicated people in the staff - all round - from bottom to the top; then only we can improve. We have to lead from the front, and talking just won't do.

V Raghunathan

3 years ago

Of late, talking about inefficiency of Coal India (CIL) has become fashionable. It appears author has completely overlooked the transportation constraints / bottlenecks in the country.

Even if by allowing foreign miners to come in with latest technology and magically enhance production drastically, has any thought been given on how such enhanced production is going to be moved throughout the length and breadth of the country with the existing capacity?

Logically, restructuring of CIL may be wwrranted in terms of environment friendly enhancement of coal production using latest technology and what is more urgently required is restructuring of transportation systems in the country, especially for bulk commodities like coal, oil etc.

Kejriwal to remain in custody till 6th June
Arvind Kejriwal’s jail stay was extended till 6th June as he remained adamant on not furnishing bail bond in a criminal defamation case filed against him by BJP leader Nitin Gadkari
 
A Delhi Court extended custody of Aam Aadmi Party (AAP) chief Arvind Kejriwal till 6th June after he again refused to furnish bail bond in a criminal defamation case against him by Bharatiya Janata Party (BJP) leader Nitin Gadkari.
 
Metropolitan Magistrate Gomati Manocha remanded the former Delhi chief minister, who was produced in a packed court room from Tihar Jail, in judicial custody till 6th June saying she cannot review her order passed on 21st May.
 
The Court has asked Kejriwal to challenge its order sending him to jail before a higher court after the ex-CM questions its decision. “I will only request you (Kejriwal’s lawyer) to challenge my order if you want. I have already made up my mind,” the Magistrate said, adding that the court was only following legal procedure and “that if other leaders of the party can furnish bond to secure bail, why Kejriwal cannot do the same”.
 
“There is a lot of legal illiteracy in the country. Even educated people do not know about legal proceedings as to what is bail and what is bond. Being in the position you (Kejriwal) were, I expect you to be sensible,” the Magistrate observed.
 
During the hearing, Kejriwal told the court he was trying to understand what his fault was and lots of politicians have filed such cases against him. “In such cases, I have been released after I gave undertaking in courts earlier,” he said.
 
The Magistrate, however, said Kejriwal was told to give a bond only and it was a legal procedure to furnish bonds for bail. “You (Kejriwal) have been summoned as an accused. You are not a convict. You will face trial...you cannot say that I am innocent and I will not give bond. This is a procedure,” the Magistrate said.
 
The Court had on 21st May sent Kejriwal to custody till Friday after he had refused to furnish bail bond in the case.

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COMMENTS

TIHARwale

3 years ago

Litigation must focus on legal wrongs and legal rights – commodities which are in remarkably short supply in this action. At the same time Judges presiding courts cannot take the plea that they cannot withdraw their own order even if subsequently the Judge realises that he had erred by telling the affected party to seek remedy by appealing to higher court. This seem strange because we have seen SC itself issuing death sentences and on a later date issue a revised on a plea that the death sentence is rescinded and now it is awarding life sentence without bothering to instruct who is the competent authority to carry out their revised order of life sentence.

MOHAN

3 years ago


very good.

shadi katyal

3 years ago

One wonder with 1.2 Billions why we have such magicians voted in as CM of Delhi which he could not run so went for the brass ring and now ended up in jail. He has made fool of many but people did wake up.
Why the Center did not jail him when he violated Law and Order in Delhi of his Dharna.
Does the nation need such leaders who can conjure up tricks and be everything for everyone. Hew wants to be a martyr but what sacrifice has he done.
One wonder why his party member an attorney is let him sit in jail? Is this to win sympathy from misled voters?

Want to grow your wealth more than double? Become an MP!

The average asset value declared by 165 re-elected MPs from the 2014 Lok Sabha shows a rise of 137%. Shatrughan Sinha tops the list with declared assets of Rs131 crore that jumped over eight times since 2009

 

Common people or voters do several things to become rich, however, most of the time, their financial conditions or wealth remains unchanged. However, according to data, the average assets of several Members of Parliament (MPs), who are re-elected, have grown more than double in just a single term!
 
National Election Watch (NEW) and Association for Democratic Reforms (ADR), which analysed data of 165 re-elected MPs, found that the wealth of these Lok Sabha members have increased from an average of Rs5.38 crore in 2009 to an average of Rs12.78 crore in 2014, a rise of 137%! 
 
 
Shatrughan Sinha of Bharatiya Janata Party (BJP) from Patna Sahib Constituency, Bihar has declared maximum increase in his assets. His declared assets in 2014 increased by Rs116.73 crore, or by 778% to Rs131 crore from Rs15 crore in 2009. 
 
Similarly, the declared assets of Biju Janata Dal (BJP) MP Pinaki Mishra and Nationalist Congress Party MP Supriya Sule, the daughter of party chief Sharad Pawar, increased by Rs107.4 crore or by 362% and by Rs62.37 crore or 121%, respectively.
 
Out of 543, 168 members have been re-elected in the 16th Lok Sabha elections of which the self-sworn affidavits of 165 members were analyzed by NEW and ADR.
 
According to the analysis, there is even an increase in criminal cases against the MPs. The criminal records of 18% re-elected MPs with self-declared criminal cases in the current Lok Sabha have shown a surge from the previous Lok Sabha elections i.e. 71 re-elected MPs who have declared criminal cases against themselves, 13 have shown an increase in the number of self-declared criminal cases in the 2014 Lok Sabha elections. 
 
“The average asset growth of 165 re-elected MPs analysed is Rs7.40 crore while 13 re-elected MPs have shown an increase in the number of self-declared criminal cases from previous elections,” the report says. 
 
The table below lists the the top 3 re-elected MPs with the highest increase in number of criminal cases : 
 
 
Dr Ramshankar Katheria of BJP from Agra constituency, Uttar Pradesh has declared the highest increase in criminal cases from zero self declared criminal cases in 2009 to 21 in 2014. While Raju Shetty of Swabhimani Paksha from Hatkanangle constituency and Adhir Ranjan Chowdhury of Indian National Congress (INC) from Baharampur constituency, have shown an increase by 12 criminal cases. 
 
 
The statistics above show that the main political parties like BJP and Congress have scored high on the Crimo-meter. With 282 elected MPs, the BJP leads the list of members with criminal cases, followed by the decades old Indian National Congress (INC).
 
Rich MPs with criminality tainted are the representatives elected for the 16th Lok Sabha making it the richest and the one with the highest number of MPs with criminal charges. Well, is it a high alert for the citizens of India? 

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COMMENTS

R Balakrishnan

3 years ago

According to what mr Modi says, he has been brought to power on the promise of good governance. So in the next five years, given the MP salaries, the networth of these rich folks should not grow much. Is the BJP as clean as they claim to be or being made out to be? Let us see. In the meanwhile, the best thing for us is to aspire to be an MP, simply because the networth multiplies so easily.

REPLY

shadi katyal

In Reply to R Balakrishnan 3 years ago


according to news thee are more criminal charged BJP MP so how in the previous. About 34% marginal increase. So how will nation pass Laws with such criminals being Law maker.
Do you think the party was unaware???
One need not have to go for college degree but enough clout to become MP.
Since nation created Service Industy, this kind of service to the nation with both hands in voters pockets.
Can RSS under the guise of BJP tell the nation why such teickets were issue??

Abhijit Gosavi

3 years ago

MPs are busy becoming rich but don't have time for doing simple things such as acquiring funds for roads in their constituency, raising heights of low railway platforms, or filtered water for their constituents. Criminal cases is another unfathomable dimension. Why did the opponent not make that issue in the election? Maybe the opponent had a criminal case against him/her too?

shadi katyal

3 years ago

It should not come as a shock.Any party leaders might shout that they will bring clean govt is to fool the voters.
The trouble is in our Constitution which does not empower people to elect and select their own candidates but is is led to votes by Party's dictatorial whims. So when the criminal aid the party they want a ticket and here the Election commission fails to deny such tickets
but we go back to our Constitution again.
When this document was written the criminal clause was left out as almost all congress ticket holders had jail record.
It was considered wise not to even have any clause and now the goons are enjoying this.
So how can India call her being the biggest Democracy when the it is Govt by the party, for the party off the party.
Every new MP gets a development purse of Rs.4 Crores but since majority doesn't belong to such areas, the money is deposited in personal account and there is in accountability or transparency .Even potable water is not provided .
Most become rich as they use their influence at a price to get things done.
Does any common man can claim if he knows who is MP, MLA is and can they meet him him without big purse?

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