The restructuring of Coal India ltd (CIl), which had been hanging fire since quite some time and the UPA Government had kept it in abeyance, is on top of the agenda of the NDA Government. Official sources have confirmed that the basic groundwork for it has been prepared and it will take place soon. CIl's seven subsidiaries could be broken up into independent entities under the restructuring exercise, a move which will help in improving coal production as well as the efficiency of the units.
Sources privy to the developments within the ministry since the new Coal Minister Piyush Goyal took charge earlier this week, told The Pioneer that CIl restructuring is "very much on" the cards of the Government as all the ground work for it has been prepared, and it is only a matter of time till it happens.
The issue was also part of the roadmap which the Coal Ministry officials had prepared prior to the minister taking charge. Goyal, it is learnt, is said to have discussed the move during a meeting with the key officials.
Despite consultancy firm Deloitte having sent its report on restructuring of CIl (it had been appointed by the previous UPA regime) in February this year, no decision had been taken on it by the ministry as lok Sabha polls were round the corner.
The Planning Commission and the Expert Committee on Road Map for Coal Sector Reforms, also known as the T l Shankar Committee, had recommended restructuring of the Maharatna company by dividing all its subsidiaries into small entities which would compete among themselves thus leading to enhancement in production of the dry fuel.
Under restructuring, powers of all the seven subsidiaries will be enhanced once they become independent entities. Once this is done, all these units will compete against each other which will lead to greater coal production as well as help increase their operational efficiency.
While the UPA Government had decided to keep the issue pending for its successor, the NDA Government, which is keen to take some proactive measures in the sector, will go ahead with it, once some final brushing up with the methodology suggested by Deloitte is done.