Proposal to separate CMPDIL from Coal India: 5-member panel to give suggestions

By: |
June 8, 2020 3:43 PM

Based on the internal panel's recommendations, CIL will make a conceptual presentation to the coal ministry, according to an official order.

CMPDIL, coal india, PSU giant, MECL, ministry of coal, Pralhad Joshi, latest news on coal indiaThe recent Coal India order said “CIL chairman is pleased to constitute a committee”, adding that the panel is tasked with “study of corporate independence of CIL and CMPDIL with critical appraisal of existing structure”.

Coal India Ltd (CIL) has set up a five-member panel that will give its recommendations after assessing the proposal to separate the company’s planning and design arm CMPDIL from the PSU giant.

Based on the internal panel’s recommendations, CIL will make a conceptual presentation to the coal ministry, according to an official order.

Sources aware of the development said that after separating the Central Mines Planning and Design Institute Ltd (CMPDIL) from Coal India, the exploration, planning and design arm of the maharatna firm will be merged with Mineral Exploration Corporation Ltd (MECL) — a PSU which is into mineral exploration.

The recent Coal India order said “CIL chairman is pleased to constitute a committee”, adding that the panel is tasked with “study of corporate independence of CIL and CMPDIL with critical appraisal of existing structure”.

It further said the committee will make a conceptual presentation on the same, and based on the recommendations of the panel, CIL will make presentation to the ministry of coal.

On the proposal to separate CMPDIL from the parent firm, All India Association of Coal Executives (AIACE) Principal General Secretary P K Singh Rathor said “there will a huge problem regarding adjustment of employees and executives because both organisations have different salary structure. So, such proposal coming in mind also deserves to be discarded”.

Stating that one-third of revenue of CMPDIL is generated through coal exploration work, it cannot be denied that remaining two-third work of exploration, planning and design arm of Coal India is also of prime importance for the country.

“Against this background, MECL primarily carries out exploration work only and instead of restricting itself to coal only, it explores other minerals also. No doubt, performance of MECL is disputed and it can be improved if it comes out of coal sector and concentrate on minerals only,” he stated.

Recently, AIACE — an association of serving and retired executives of Coal India — had sought a wider consultation over the proposal to separate the state-run firm’s exploration, planning and design arm CMPDI from the company.

The AIACE in a letter to Coal Minister Pralhad Joshi had alleged that the proposed move to split the CMPDIL from Coal India is aimed at “clearing the deck” for private consultancy companies.

MECL functions under the Ministry of Mines with 100 per cent government holding, for systematic exploration of minerals.

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