Government asks Coal India to improve performance to avoid restructuring

Government asks Coal India to improve performance to avoid restructuring

New Delhi: In a stern message to Coal India Ltd (CIL) the government has asked the world’s largest coal company to improve efficiency to avoid restructuring.

According to sources, the power and coal minister Piyush Goyal has asked the state-run company to improve the quality of its coal by 31 December 2014.

According to sources, the power and coal minister Piyush Goyal has asked the state-run company to improve the quality of its coal by 31 December 2014.

The coal ministry had earlier planned to restructure CIL to improve its operational efficiency.

The coal ministry had earlier planned to restructure CIL to improve its operational efficiency.

The company’s seven subsidiaries include Eastern Coalfields Ltd (ECL), Bharat Coking Coal Ltd (BCCL), Central Coalfields Ltd (CCL) and South Eastern Coalfields Ltd (SECL).

As per sources, Goyal told CIL that coal supplied to the power companies should not comprise stones or boulders and it should work towards arresting coal grade slippage.

As per experts, coal grade slippage has an adverse impact on power generation.

Meanwhile, the minister is of the view that the power generation companies should have the right to appoint neutral quality samplers.

He has also asked CIL to reduce the quantity of coal sold through e-auction and make that portion of the fuel available to power plants.

CIL has been directed to limit e-auctioning of coal to 25 mt this year from 57 mt, sources said.

Last week, at a meeting with private power developers, coal ministry and CIL officials, Goyal asked the state-owned coal major to make efforts to raise production from its existing mines.

Goyal who is also the coal minister, met top power honchos, including Anil Ambani, chairman of Reliance Power Ltd, Gautam Adani, chairman of Adani Group, Vineet Mittal, managing director of Welspun Energy, and Naveen Jindal, chairman of Jindal Steel and Power Ltd, to look for solutions to address the country’s electricity shortage, which was as high as 7,000 MW in May.