Coming from a public sector background, I see huge potential for Mine developer cum operators, for taking the job of mining on long term contracts both in public and private sector coal blocks. CIL or SCCL are surviving because they have out sourced Overburden removal, coal extraction, several jobs in underground mines etc. There is also a model wherein contractor/Mine operator is given responsibility of operating Long wall faces, where CIL has borne the CAPEX risk. Things have come to such a pass that anything departmental is highly expensive and inefficient.Unless public sector coal companies improve efficiency of their departmental activities and become competitive, coal produced by private sector coal blocks (with amendment in Law allowing commercial mining) would become a lot cheaper forcing the public sector companies out of business .At the same time there should be proper regulation and mechanism of imposing heavy penalties for violation of safety and environment conditions on the mine operators.
Disinvest in coal PSUs, CIL/SCCL would result in better management and accountability to share holders which would improve efficiency and reduce cost of production.
The fear of harassment by Vigilance/audit if these functions are manned by corrupt persons is also delaying the decisions with consequent time and cost overruns.
CIL and some of its subsidiaries are headless for quite some time which has serious repercussions both in medium and long term.
In conclusion it can be said that unless fast action is taken by Government on all aspects of coal mining which are hindering the progress now, taking country's coal production to one Billion tons level in four years would remain a pipe dream,
Posted by: jdattatreyulu@hotmail.com
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Directorate General of Mines Safety, Ministry of Labour & Employment, Govt. of India
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