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'CIL should focus on production, not margins'

 

PARIMAL PIYUSH | New Delhi, June 6, 2012 18:47
Tags : Ministry of Coal | Coal India | CIL |
 

 

'CIL should focus on production, not margins'  Barely a week after demitting office as Secretary, Ministry of Coal, Alok Perti, who now serves as advisor to the coal ministry, has rapped state-run Coal India (CIL) for focusing on margins rather than looking at ways to hike production.
 
"CIL needs to focus on production to meet the power sector demands instead of looking at margins,” Perti said, adding that focusing on profits was for private firms to do. 
 
In a rap to the laid-back attitude of the Maharatna firm's management, Perti noted that the initial public offering (IPO) of the company in 2010 was supposed to bring in a change in the attitude of the management, but that never happened.
 
"We at one stage, when we brought the IPO of CIL got the feeling that this is going to usher in a better management and we thought that for quarterly reports, etc, the Board would be more professionalised. What we find there is not exactly so and that is where I think that Coal India needs to modify for change," Perti said in New Delhi on Wednesday, calling for drastic improvements to the management standards of the company. Perti had been working in the coal ministry since 2009 and was promoted as secretary in September last year. He has been appointed as an advisor to the ministry now. 
 
"In a monopolistic situation, is profit for a government firm only objective? I think it can not be so. Unfortunately, for the last few months, it is giving that kind of projection only. It needs to change," Perti added. 
 
CIL, which accounts for about 80% of the country's coal production, has been unable to increase the production during the last few years to achieve its targets due to lack of modernisation. The firm's output has remained stagnant for the last two years which is often attributed to lack of forest and environment clearances. Last year, its production was 431 million tonnes. 
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Issue Dated: Feb 5, 2017