The Hindu : Business : Revival package for sick coal companies likely

Online edition of India's National Newspaper
Tuesday, Jul 06, 2004

Business

Business

Revival package for sick coal companies likely

By Our Special Correspondent

NEW DELHI, JULY 5. The Union Ministry of Coal and Mines is working on revival packages for Eastern Coalfields Limited, Bharat Coking Coal Limited and Central Coalfields Limited because these companies have become sick being burdened with old mines and a legacy of unscientific mining practices.

The total investment required for the three coalfields has been assessed at Rs. 6,000 crores since modern mining equipment along with mechanisation would be necessary to make these mines productive. However, the investments would be spread over a 5-8 years and the Ministry had accordingly sought budgetary support from the Finance Ministry, beginning in the current year itself.

According to sources, the Finance Minister, P. Chidambaram, is understood to have assured the Coal and Mines Minister, Shibu Soren, that budgetary support could be considered if financially sound proposals were made which could ensure the turnaround of these companies.

Mr. Soren is understood to have taken up, with the Finance Minister, another proposal for expansion of production capacity of National Aluminium Company (Nalco).

The expansion would cost around Rs. 4,000 crores and would increase the mining capacity of Nalco from 4.8 million tonnes to 6.3 million tonnes while increasing the refining capacity of the plant from 1.5 million tonnes to 2.1 million tonnes and smelting from 0.345 million tonnes to 0.460 million tonnes.

Another proposal forwarded to the Finance Ministry is for terminal benefit packages for more than 3,000 employees of Bharat Gold Mines Limited which was closed in 2001.

Some other proposals forwarded by the Coal and Mines Ministry include substantial reduction in customs duty on mining equipment, replacement parts and spares from the present level of 39.2 per cent. An empowered committee for single window clearance for approval of coal and lignite projects as also a single window clearance system for approval of mining licences to cut down procedural delays have also been suggested.

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