Few Coal India Ltd (CIL) chairmen have had to don the chieftain's robes at a more critical juncture. As if taking on charge of the world's single-largest mining company is not enough at a time when its production is flat, but it is like taking the proverbial hot-seat when supplies have to be made under a Presidential fiat.
Naturally, increasing production and despatch are two of the biggest challenges that S. Narsing Rao is going to address. He gave The Hindu , a brief telephonic interview, just hours after he got his formal communication about his new job. A 1986 batch IAS, Mr. Rao, now the CMD of Singareni Collieries Company, was recommended to the post by the Public Enterprises Selection Board (PESB) from among 19 candidates, including some CIL top-brass and fellow IAS.
CIL has been without a full-time chairman since March 2011. Mr. Rao expects to take up his new job within a fortnight.
What are the challenges that you face?
Increasing production and despatches would be the major challenges for Coal India Ltd.
During the XI Plan its annual growth rate was only around 4 per cent. It will have to take this to 7 per cent during the XII Plan.
What would be your priorities?
In the medium-term, improving railway infrastructure is an area that requires attention. If this can be put in place, a large part of the concern area could be solved. CIL subsidiary companies such as South Eastern Coalfields, Mahanadi Coalfields and Central Coalfields have huge potential by way of reserves and opencast mines from where mass production is possible. But railway infrastructure is a problem.
What is the way forward?
The Coal Ministry, the Railways and the State Government have to sit together to hammer out a solution. There is no problem of money (CIL is sitting on a pile of cash reserves).
There is no problem of viability either. But yes, land acquisition has to be taken care of.
Do you agree that in a way the FSA issue is more an opportunity than a threat to CIL?
I will not see it as either. What I see is that there is now a memorandum of understanding, against which CIL will be required to supply coal to the power sector. Estimates are that around 100 million tonnes would be required to meet this commitment for power plants getting commissioned by December 31, 2011. CIL is duty-bound to make these supplies, if necessary through imports.
But CIL could not import any coal as it could not find takers?
The scenario now is different. Perhaps, this time the users will not mind the price differential for the residual amount of coal that may have to be imported.
