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Govt report for privatisation and disinvestment in CIL
A government sponsored review committee on regulatory framework in coal industry has recommended privatisation of Coal India Ltd (CIL) as part of reforms in the crucial mining sector.
A government sponsored review committee on regulatory framework in coal industry has
recommended privatisation of Coal India Ltd (CIL) as part of reforms in the crucial mining sector.
In its report, the committee said that the present structure and ownership of CIL was not compatible with the proposed opening up of the sector and pointed out that major private investors would not enter the arena under the current conditions. The report is part of the structural reform package of the Coal Sector Rehabilitation Project (CSRP) undertaken by the government and the World Bank. The report has been prepared by Tata Energy Research Institute (TERI) and International Mining Consultants (IMC) of United Kingdom for the government.
In order to encourage the development of commercial practices in the coal companies, the report has recommended the establishment of an arms length relationship between the Department of Coal (DoC) and the operating companies.
It further added that the establishment of this relationship would in turn encourage the formulation and implementation of sectoral policies which are separate from those of the existing operators.
The report has criticised the nature of the relationship between the DoC and CIL stating that the former had become part of CIL management which was both undesirable and unnecessary. Cil currently has eight subsidiaries in its fold including some loss making ones like Eastern Coal Fields(ECL) and Bharat Coking Coal Ltd (BCCL).
Bureau Report
In its report, the committee said that the present structure and ownership of CIL was not compatible with the proposed opening up of the sector and pointed out that major private investors would not enter the arena under the current conditions. The report is part of the structural reform package of the Coal Sector Rehabilitation Project (CSRP) undertaken by the government and the World Bank. The report has been prepared by Tata Energy Research Institute (TERI) and International Mining Consultants (IMC) of United Kingdom for the government.
In order to encourage the development of commercial practices in the coal companies, the report has recommended the establishment of an arms length relationship between the Department of Coal (DoC) and the operating companies.
It further added that the establishment of this relationship would in turn encourage the formulation and implementation of sectoral policies which are separate from those of the existing operators.
The report has criticised the nature of the relationship between the DoC and CIL stating that the former had become part of CIL management which was both undesirable and unnecessary. Cil currently has eight subsidiaries in its fold including some loss making ones like Eastern Coal Fields(ECL) and Bharat Coking Coal Ltd (BCCL).
Bureau Report