Date:26/03/2006 URL: http://www.thehindubusinessline.com/2006/03/26/stories/2006032602840200.htm

Back Ministry to seek Cabinet nod for Coal Videsh venture

Our Bureau

Move is aimed at making Coal India a world-class company

New Delhi , March 25

The Ministry of Coal will place before the Cabinet within the next few weeks a proposal to allow Coal India Ltd (CIL) to form Coal Videsh Ltd as a subsidiary through which the public sector monolith will acquire coal mines outside India.

The move is aimed at making CIL a world-class company. The Ministry has also recommended navaratna status for CIL to the Department of Public Enterprises (DPE) and is now awaiting reply.

Awaiting approval

The Minister for Coal, Mr Sibu Soren, told newspersons here that his Ministry has circulated notes to concerned Ministries on the issue of Coal Videsh and are awaiting their views. As and when their views come, the proposal would be put up before the Cabinet for its due approval.

The Minister also said that the expert group set up by the Ministry for suggesting modalities for coal sector reforms has suggested that private sector participation and captive mining must be promoted to increase domestic coal production.

In order to have better price realisation, it is planned that initially a target would be fixed to sell 20 per cent of coal produced through e-auction, and gradually this would be raised to 30 per cent.

Task force mooted

The expert group has also suggested that to rapidly increase production, the Ministry should set up a permanent special task force to monitor progress of clearances and project implementation of all projects required to be completed by the end of Eleventh Plan to fully realise CIL's production plans including emergency production plans.