Coal ministry rolls out Rs 8000crore package

Coal and mines minister Mamata Banerjee, recently announced a Rs 8,000 crore investment package to revive the two ailing Coal India subsidiaries, Eastern Coalfields Ltd (ECL) and Bharat Coking Coal Ltd (BCCL).

In addition, a Rs 2,000 crore, 500Mw power plant would be set up by Neyveli Lignite Corporation through a joint venture with ECL.

"We have chalked out a Rs 4,000 crore modernisation and expansion package for BCCL the broad outlines of which have already been chalked out, along with a Rs 2,000 crore revival package for ECL," she said at the Kolkata Press Club.

The earlier package was refused by the employees and thus not passed. This package was expected to be be accepted by all because it had rejected downsizing.

"ECL and BCCL was referred to the Board for Industrial Finance & Reconstruction a few years ago, but the ministry intends to call it back from BIFR through the package to turn the two companies into profitable ones in the next few years," she explained.

The 500Mw power project in West Bengal was likely to be set up in one of the three locations of Bankura, Birbhum and Purulia. Funding was yet to be worked out.

Asked how would the revival packages be funded, Mamata said Coal India, being a profit making company, would provide funding.

The ministry was yet to explore funding options from financial institutions or multilateral agencies. Other means of funding would be tried out as well.

Coal India was planning to set up a large hospital in Kolkata on the likes of All India Institute of Medical Science (AIIMS) and has already received land from the state government.

"The hospital with world class facilities will provide treatment to employees from CIL and its subsidiaries." she informed. She said she had directed CIL executives to issue insurance to all employees.

An expert committee under her ministry will also be set up to look into isolated coal beds that are not commercially exploited.

"A transparent mechanism under the chairmanship of the coal secretary will be set up to look into the matter," she explained.

For met-coke blocks, a separate screening committee will also be setup and information on coal beds will be made available to the general public so that private parties can participate in mining.

This was also being set up to take care of the mafia group that resorts to illegal coal mining.