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Tuesday, 16 February 10
KPMG PENS 6-POINT STRATEGY FOR COAL INDIA RESTRUCTURING


Coal India Ltd (CIL) has appointed KPMG Advisory Services Pvt Ltd to advise on consolidating its position as the country’s prime energy provider, a statement released by CIL said.

KPMG has identified six key areas that will support CIL to realise its vision, including managing scale of growth, improving operational efficiency, improving customer orientation, expanding presence across the coal value chain, becoming the employer of choice and focusing on environment and community through sustainable initiatives.

A time frame of 18 months has been fixed for this initiative, including a year of implementation, during which the roadmap for improvement will be laid out.

Currently, the Navratna coal mining major produces 82% of overall coal output of the country and meets 45% of the country’s primary commercial energy needs. According to the statement, land acquisition is one of the road blocks hampering CIL’s production rate and thus the growth potential. The fair price of land to be acquired and the compensation thereof has emerged as a major issue between CIL and tenancy land owners.

Secondly, the company is also facing difficulty in hiring for statutory positions and certain niche skills. Thirdly, there is a mismatch between evacuation requirements of CIL vis-à-vis the resources availability for dispatch; particularly through rail transportation.Also, current production is skewed towards open cast mining, consequently there is scope to increase output through adoption of new technologies in underground mines.
Source: DNA India



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