The company has seen a sea of change in its activities ever since it stopped mining in 2006 at its mines in Western Ghats region following the Supreme Court direction in 2002.
"It could not project its future plan through a formal process. Now, since many of the initiatives taken in the past are falling into shape, it has been decided to formulate a Corporate Plan through a Vision 2022 document aligning its term in a year with Government of India's 13th Five year Plan," said Malay Chatterjee, chairman and managing director, KIOCL Limited.
The document is under formulation in consultation with a reputed consulting firm and is likely to be finalised by the mid of 2014-15, he said in the annual report for 2013-14.
KIOCL has been making relentless efforts to acquire an alternate mine to provide itself a new lease of life. The situation has aggravated further with the changing government policies and imposition of new and varied types of duties and taxes, which make the products uncompetitive and thus losing foothold in the course of time, he said.
"To address this issue, a mandate has been given to a reputed international consulting firm to conduct a comprehensive study and evaluate viability and sustainability of the Company. The agency is required to take the current situation covering the economic condition etc. and would hold dialogue with its key stakeholders," he said.
The study is under progress and once the report is submitted, the Company will analyse the same holistically and would take appropriate steps, for its long term sustenance and creation of value to stakeholders, Chatterjee said.
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O&M business vertical
In an effort to survive in the highly competitive market, KIOCL has set up a new business vertical, Operation and Maintenance (O&M). It is in the process of securing an O&M contract from NMDC Limited.
NMDC is setting up a Beneficiation Plant of 1.89 million tonnes per annum capacity and a Pellet Plant of 1.2 million tonnes per annum capacity at their Donimalai premises and these plants are likely to be commissioned by October 2014. In these plants, NMDC propose to utilise the unused slime material from their tailing dam and converting them into Pellets.
Keeping the expertise available with the KIOCL in having successfully operated a beneficiation plant of 7.5 million tonnes per annum capacity and also operating a Pellet Plant of 3.5 million tonnes per annum capacity, the Company has submitted its proposal to NMDC offering its expertise for the operation & Maintenance contract for an initial period of 3 years. O&M contract will help the Company to gainfully utilise its experienced manpower. The contract is expected to be awarded shortly, Chatterjee said.
The company backed with its ability, outstanding performance, highly skilled & committed workforce, fully computerized offices, latest design software, integrated project monitoring wing etc. and rich legacy has diversified and would like to emerge as a leading Project Management Consultant (PMC). The Company has empanelled the Architects and other Consultants for carrying out PMC work, he added.