Batting for imparting freedom and flexibility in decision making, the NITI Aayog suggests ,in its recently released three-year agenda, spinning-off the subsidiaries of Coal India Limited (CIL) into separate entities to enable the subsidiaries develop their own strategies and business models.
In its three-year agenda, opening up the coal mining sector in India to private miners is also one of the key suggestions by the top government think tank towards improving efficiency in coal mining. Underling the rationale behind favoring commercial mining in the country, the NITI Aayog, outlines that it will help towards changing the coal pricing mechanism in the country into commercial lines.
In a strong note, the apex think tank suggests doing away the practice in place of segmenting the coal consumers in India into: power and non-power segments, to impart a level playing field in the industry.
To improve productivity of coal mines in the country, the output per man shift (OMS) from the underground mines in India is suggested to be raised from 8% of the total coal output in the country, along with directing efforts to increase coal production and enhancing efficiency of distribution.
To boost coal production, the NITI Aayog suggests completing transfer of mining lease and other related activities in respect to captive mines to new successful bidders.
Furthermore, the production from captive blocks is suggested to be increased to 400 MnT by 2020, and to achieve the target, yearly milestones should be set, and if required, coal mines should be re-allocated, the think tank suggested.
Leave a Reply