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Coal India rejig only after analysing Deloitte report: Sriprakash Jaiswal

A decision on restructuring of Coal India will be taken only after analysing the consultant's report on the matter, Union Minister Sriprakash Jaiswal said today.

What is the need for restructuring? Coal India has given 290 per cent dividend this year (2013-14) and the government is happy, Jaiswal told reporters on the sidelines of a mining conclave here.

In January, Coal India had declared a special interim dividend of Rs 29 per share and the government had earned over Rs 16,485 crore as dividend and dividend tax.


Jaiswal later told PTI that the government would take a "final call" only after analysing the consultant's report which has already been submitted.


Asked if the restructuring plan has been pushed to background since the polls are round the corner, the Minister just smiled, but did not offer any comment.

The government had last year appointed consultancy firm Deloitte to study the scope of restructuring of the company following recommendation by the T L Shankar Committee.

The T L Shankar Committee had recommended restructuring Coal India subsidiaries into separate companies to bring in more efficiency in the functioning and productivity in a bid to make the state-run mining company globally competitive.

Coal India has seven wholly-owned coal producing subsidiaries and one mine planning and consultancy company and accounts for over 80 per cent of India's coal production.


Meanwhile, the government might offer 'some' coal blocks for auctions in the next one month for steel and cement companies, Jaiswal said.

"I cannot give the exact number of blocks that will come up for auction. But some blocks will come up for auction in the next one month," the minister said.

Source: PTI