Ranchi, June 2: Coal India Ltd's subsidiary Central Coalfields Ltd (CCL) has embarked upon a cost reduction process for the first time to revive the financial health of the company. CCL had been incurring losses for the last five years.A senior CCL official told The Financial Express that to minimise losses, the company has suspended mining operations on Sundays in all the 10 coal mining areas. He said only three mining areas - Piparwar, North Karanpura and Rajrappa - from where profits are earned, are operating on Sundays. These mines will pay overtime to the employees for working on Sundays.
The official said with suspension of operations on Sundays, CCL wil be able to save nearly Rs 50 crore per year towards payment of overtime to the employees. He however said that the employees did not accept the stipulation about Sundays in good spirit and held demonstrations against it initially. But that matter has been reconciled now, he said.
The official said under the Mines Act, the company cannot engageany miner on duty for more than 48 hours in a week. When asked how the company had been violating the law for so long, the official said the practice was going on since long and the miners did not oppose it as they enjoyed the benefit of overtime payment.
According to the official, the termination of work on Sundays will not affect coal production as the remaining three profit-making areas will increase production.
Moreover, he said for want of takers, pithead stock of coal has increased to 3.57 million tonnes till last month. With the introduction of advance payment against coal supplies, power plants have restricted their stock limit.
Meanwhile, general secretary of Coal Mines Officers Association of India KP Singh said the joint consultative committee of CCL that met recently has identified the following steps for the company's revival:
Improve the quality of machines by supplying quality spares at the right time Increase shift machine working hours Maximise overburden trips formore overburden removal Ensure quality in coal despatches by maintaining production and clean coal faces for full consumer satisfaction, and Better realisation of sale price with particular attention to the quality of washed coal Minimise cost of production by reducing expenditure.Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.