The coal and mines ministry is looking for private investment and private participation, the Union minister of state for coal and mines, RS Prasad said.
Speaking at a press conference he said, "There are seven subsidiaries under the Coal India, out of which three are loss making. These are Central Coal fields Ltd (CCL), Bharat Coking Coal Ltd (BCCL) and Eastern Coal fields Ltd (ECL)."
While BCCL has made a loss of Rs 1200 crore in the financial year 2000-01, CCL and ECL recorded a loss of Rs 700 crore and Rs 900 crore respectively.
"This also has a bearing on the Coal India since huge amount goes in paying wage arrears. because of this coal India also recorded a loss of Rs 1,200 crore. We want to restructure the three loss making companies. We won't go in for retrenchment but might go for relocation of some employees. Restructuring of ECL has already started while CCL is likely to start soon," Prasad said.
About 250 blocks of mines are currently with Coal India, of which 127 blocks are reserved for private sector. The amendment bill in the Coal India Act of 1973 regarding this is pending in the parliament.
Commenting on the dues with the various state electricity boards, Prasad said, "About Rs 6,000 crore are pending with various state electricity boards. Of which, Rs 4,000 crore is the admitted dues while the rest Rs 2,000 crore is disputed. However, I would like to point out there is no pending due with the Karnataka State government."
Commenting on the environmental issues connected with mining, he said, "Environmental concern and mining operating have to go hand in hand. For instance, our survey has shown that Bastar has rich resources but since it's a wildlife sanctuary we can't do anything. We are trying to solve the problem by compensating the wildlife in some way."
Since liberalisation Rs 3,900 crore of equity in 70 projects has been cleared by the government in this sector. In the non-precious gems 100 per cent equity is allowed by a private player while in diamond and precious gems 74 per cent of equity holding is allowed by the private player.
The coal and mines ministry is using the help of GSI to tap the full potential in this sector in the government. The Airborne Minerals Surveys and Exploration (AMSE) wing of GSI has helped in establishing the geological continuity of the Khetri Copper belt in Rajasthan over a stretch of 30 km with prospects of cu-mineralisation.
