Coal India executives’ body urges govt to form panel to mull separation of CMPDI from CIL

• A panel should be formed to examine the issue and suggest measures in the best of national interest as well as employee welfare, AIACE said

• Out of the eight subsidiaries of CIL, seven are coal producing companies, while CMPDI is its Planning & Design arm acting like the brain of CIL, it said

New Delhi: An all-India association of executives at Coal India has urged the Central government to form a high-powered committee of experts to examine and evaluate the proposal to separate its exploration, designing, and planning arm — CMPDI (Central Mines Planning and Design Institute) — from the Maharatna PSU. In a letter addressed to Coal Minister Pralhad Joshi, the AIACE (All India Association of Coal Executives) asked the minister to keep the employees' interest in mind while taking a final decision on the separation of CMPDI from Coal India.

"We propose formation of High Power Committee of experts, drawn from various fields including representatives from employees and executives associations of CIL to examine this issue and suggest measures in the best of national interest as well as employee welfare. It is further added that employees' interest must not be overlooked while taking final decision on separation of CMPDI from CIL," the letter said.

'CMPDI functions like the brain of Coal India'

While stating that Coal India executives and employees are apprehending that the government may separate CMPDI from Coal India to open the door for private coal companies, the AIACE said, "Out of the eight subsidiaries of CIL, seven are coal producing companies, while CMPDI is its Planning & Design arm acting like the brain of CIL. The restructuring of CIL was originally proposed by the T.L. Shankar Committee, which submitted its recommendations in 2007. We are not sure whether the proposal to split CIL into smaller entities will serve the purpose or not, but certainly it will create problems for survival of CMPDIL."

'Separation of CMPDI being done to clear decks for private players'

The letter said that the proposed move to separate CMPDI from Coal India is aimed at clearing the deck for private consultancy companies that have been in existence since 1993 when India opened up the coal sector. "But even though about 42 billion tonne of coal reserves had been allotted to private players as captive mines, coal production from these private mines has barely reached 39.75 million tonne against the projected target of 100 million tonne. The belief that private players will increase production by manifold has been proven wrong."

"The thinking that CMPDI will extend its services to private miners in an impartial mode by coming out of the clutches of CIL is not sustainable. Auctioning of coal blocks, based on bidding by private players, will always require them to engage individual consultant. So, in this process CMPDI can never assist the private players. It can only assist the operating private miners of the coal blocks. In the present organisational set-up also, CMPDI is assisting in the similar way," the letter said.