Govt: MECL will be merged with CMPDIL; CMPDIL to continue to be CIL subsidiary

• 'MECL has domain expertise in non-coal mineral exploration and consultancy'
• 'Therefore, such merger and creation of one integrated exploration and consultancy organisation with requisite expertise for coal and non-coal sector would result in growth and value addition'

New Delhi: Days after media reports claimed that the government was planning to merge Central Mine Planning and Design Institute Limited (CMPDIL) with Mineral Exploration Corporation Limited (MECL), the government has clarified that MECL is to be merged with CMPDIL, not the other way round. In a statement released on Monday, the Ministry of Coal said, "Recently unconfirmed reports have appeared in a section of the Media that the Central Mine Planning and Design Institute Limited (CMPDIL) is being merged with Mineral Exploration Corporation Limited (MECL)."

'MECL merger will allow CMPDIL to expand into non-coal exploration'

In this regard, the Ministry of Coal has clarified that CMPDIL is a subsidiary of Coal India Limited (CIL) that provides exploration and consultancy services primarily to the coal sector. "Keeping in view the scope for its business expansion into other minerals, the government has plans for strengthening CMPDIL, for which it is being considered to merge MECL into CMPDIL," said the Ministry of Coal.

"MECL has domain expertise in non-coal mineral exploration and consultancy. Therefore, such merger and creation of one integrated exploration and consultancy organisation with requisite expertise for coal and non-coal sector would result in growth and value addition. At the same time, CMPDIL will continue to be a subsidiary of Coal India Limited," said the government.

Background

The news puts to rest all speculations over the de-merger of CMPDIL from Coal India Ltd. Although the government was considering a proposal to separate the coal exploration and consultancy arm from CIL, however, that proposal has been shelved, said sources. Recently, All-India Association of Coal Executives (AIACE) had also written a letter to Coal Minister Pralhad Joshi, urging the government to consider the merger of MECL with CMPDIL, so that the latter remains a subsidiary of CIL. 

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