Coal India Plans Manpower Downsizing By 20,000 A Year

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Mumbai, February 13:: Coal India Ltd (CIL), the largest single coal producing company in the world with over five lakh employees on its pay roll, has set a target to reduce manpower by at least 20,000 heads per year.

CIL chairman NK Sharma told FE that the company wants to raise the productivity through improved technology. He added that the company will inculcate efficiency of operations to reduce cost.

“CIL will act as a facilitator to the power producers for setting up coal beneficiation plants by way of providing land, water, power infrastructure etc., against payment,” Mr Sharma said while making his presentation at a seminar “Coaltrans India 2003”, in Mumbai to deliberate on issues relating to the coals sector in India.

Mr Sharma said that foreign players like Robert Sheffers Inc of the US have already started setting up washeries near mines in India.

As per CIL’s vision for the next decade for its underground mines, the company has plans to phase out manual production and replace blasting with mechanised extraction. The company has also planned rationalisation of transport system to cope with mechanisation and encourage indigenous manufacturers to develop equipments. The company’s vision for its open-cast mines include opening more greenfield projects, forging AMC with HEMM Suppliers, replacing obsolete equipment with higher sized fleet, introducing surface miners on a wider scale, using IT enabled systems and out sourcing some activities. u

Mr Sharma said that CIL’s vision is to stem import of thermal coal by providing enough of right quality coal domestically. Import of thermal coal has increased drastically over the decade.

Total import of thermal coal in 1991-92 was at 5.93 million tonne, while it increased to 22.47 million tonne in the year 2001-02. The estimated import of thermal coal to India is expected to reach 47 million tonne in the years 2006-07.

The shake up in CIL seems to be in anticipation of the coal mines nationalisation (Amendment) bill. According to Mr Sharma, the private sector participation in coal sector is inevitable with the passage of the bill.

As per CIL’s production plans, the company expects to produce 286 million tonne in 2002-03. The production is expected to increase in the fiscal 2006-07, and is eventually expected to reach 445 million tonne in 2011-12.

CIL is also looking forward to providing assistance and support to co-players in the coal sector. CIL is also taking a lead in coal bed methane, coal gasification and liquefaction.