As part of the three-pronged strategy, the technical upgradation of mechinery and equipment, downsizing of workforce and plugging of losses due to pilferage will top the agenda.

To speed up the reform process, the decision-making mechinery will be stremlined at the central level, according to coal and mines ministry sources.

As a first step in this direction, the name of a senior official has already been referred to the Cabinet Committee on Appointments to be posted as a full-time chairman of Coal India Ltd who will oversee the functioning of all the coal companies. A senior official DK Singh has already been inducted as joint secretary in the ministry.

When contacted, minister of state for coal S Shahnawaz Hussain said, "The domestic coal sector has been incurring annual losses of Rs 10,000 crore, mainly due to pilferage, corruption, inordinate delay in implementation of projects and procurment of equipment. The government has made up its mind to plug these losses, if not completely, at least partially."

Nearly 6.5 lakh workers are engaged in the sector, Mr Hussain said, adding that the government has decided to introduce VRS in these companies. For this, Rs 180 crore has been set aside for this fiscal, of which Rs 100 crore has already been disbursed.

On technology upgradation, the minister said the latest mechinery and equipment play a crucial role in coal mining.