Millennium Post

Commission suggests division of Coal India

Commission suggests division of Coal India
In view of the growing supply deficit of coal, Planning Commission has suggested spinning off Coal India's subsidiaries into separate entities so that each one of them can pursue its own goals. 'The industry would be better served if the subsidiaries were spun off as separate public sector companies encouraged to develop their own strategies of coal development including joint venture activities and acquisition of assets abroad,' said the 12th Five Year [2012-17] Plan document. World's largest coal miner CIL has nine subsidiaries that include Bharat Coking Coal Ltd [BCCL], Central Coalfields Ltd [CCL], Eastern Coalfields Ltd [ECL] and Central Mine, Planning and Design Institute Ltd [CMPDIL]. CIL has 100 per cent stake in all of them.

'It is not clear that the present structure on which the operating coal companies are subsidiaries of CIL as a holding company as desirable,' it added.

The document also recommends setting up of a high-level committee with the task of examining the option and asking it to submit a report within six months. The Planning Commission projects India's coal import to go up to 185 million tonnes at the end of the 12th Plan based on total coal demand of 980 million tonnes and domestic supply of 795 million tonnes.
PTI

PTI

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