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No plans to restructure or break up CIL: Goyal

 India Financial Express, Delhi, 20th June 2014 

 

Union coal and power minister Piyush Goyal has made it clear that the government has no plans to break up Coal India (CIL) and has no plans to make any structural changes to the company. “We have no plans of breaking Coal India and spinning it off into separate companies,” Goyal told FE, refuting recent reports suggesting such an overhaul. The company rather needs proper leadership and planning for improved productivity, Goyal said. The UPA government proposed restructuring CIL and appointed Deloitte as a consultant to study the scope of restructuring the world’s largest coal mining company.

 

This was done following the recommendations of the TL Shankar Committee. While Deloitte submitted the report in January this year, the former government didn’t want to go for any immediate action in the wake of CIL paying a 290% dividend in February. In 2013, the Planning Commission and the expert committee for the coal sector reforms or the TL Shankar Committee recommended restructuring CIL to bring in more efficiency in the company’s functioning for making it globally competitive. Sources said it was mooted that CIL after exercising its buy back option would turn the subsidiaries into different companies and thereafter break those companies into smaller companies on the basis of cluster of mines and offer to the private players. . Goyal held a meeting with CIL officials on Thursday to identify the bottlenecks that were coming in way of CIL’s productivity.

 

He said the ministry was working closely with the environment ministry to get the pending environment clearances. A CIL official said Goyalhad called environment minister Prakash Javdekar over the phone to apprise him of the clearance issue. Javadekar then initiated the primary action and told him of the development, said the official.