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Days after receiving the draft report from Deloitte on restructuring of state-owned Coal India (CIL), Union Coal minister Shriprakash Jaiswal today raised questions over the rationale behind the proposal, indicating he would prefer shelving the plan.
"What is the need for restructuring Coal India? They have given 290 per cent dividend, the government is very happy about that," Jaiswal told reporters here, responding to a query on ministry's view on CIL restructuring in the wake of Deloitte's report on the same.
Consultancy firm Deloitte, which had been selected to study the restructuring of state-owned CIL, has recently submitted its draft report to the coal ministry.
When asked whether the ministry has decided to shelve the plan, he noted, "As of now, there is no need for restructuring."
However, the minister did not divulge details of Deloitte's report. "Deloitte has submitted its report and the ministry is analysing it," he said on the sidelines of inauguration fifth International Mining Expo 2014 here.
The idea of restructuring CIL was originally mooted by the T L Shakar committee report on coal sector reforms in 2007. The 12th plan document on CIL restructuring says, "The industry would be better served if the subsidiaries were spun off as separate public sector companies."
CIL, the world's largest coal miner producing about 450-million tons a year currently operates through seven wholly owned mining subsidiaries, including Eastern Coalfields, Bharat Coking Coal, Central Coalfields, South Eastern Coalfields, Western Coalfields, Northern Coalfields and Mahanadi Coalfields, along with an in-house consultancy, a subsidiary of the Central Mine Planning & Design Institute.
Meanwhile, speaking on the proposed coal block auction, Jaiswal said, "I cannot give the exact number of blocks that will come up for auction next month. But some blocks will come up for auction in the next one month."
The Centre has already identified 36 blocks to be allocated via auction route to private companies.
