Central coalfields to produce 78 million tonne by 2012

March 3rd, 2008 - 3:38 pm ICT by admin  

Ranchi, March 3 (IANS) Central Coalfield Ltd (CCL) has set a target of producing 78 million tonnes of coal from 44 million tonne currently in the 11th five-year plan (2007-12) by investing Rs.19.9 billion ($493 million). “We have set a target to produce 78 million tonne coal from existing production of 44 million tonne. Some new projects will come and old projects will be streamlined to increase the coal production,” CCL chief managing director R.P. Ritolia told IANS.

“To achieve the target, we will invest Rs.1,990 crore (Rs.19.9 billion) in the 11th five-year plan. The investment will be in opening up new coal mines and buying latest machines and technology for mining.”

At present CCL is a company of worth Rs.40.5 billion with a profit of Rs.12 billion. This is despite the fact that CCL was a loss-making firm in 2001-2002.

Since 2002, the company has increased production from 33 million to 44 million tonne.

Among the state-owned Coal India Ltd’s eight subsidiaries, CCL is now third in terms of profitability.

About the turnaround, Ritolia said: “We do not have any Aladdin’s lamp. We utilised our resources in the best possible way,”

“We spent more than Rs.300 crore (Rs,3 billion) on health centres, community development and welfare of the employees. Only happy employees can produce their best.”

CCL also spent more than Rs.4 billion replacing old machines.

At one point of time CCL had more than 100,000 employees that has been reduced to 60,000.

“We do not believe in increasing manpower. We believe in complete harnessing of potential human resources.”

Every year, around 2,000 to 2,500 employees either retire or opt for voluntary retirement.

The CCL said it was the highest taxpayer in both Bihar and Jharkhand.

“We pay Rs.1,100 crore (Rs.11 billion) in taxes every year.”

He however pointed out that there was a case for allowing public sector units more freedom in deciding on expansion and modernisation.

The second most important hurdle the company faces in expansion is due to delay in forestland clearance and land acquisition, he said.

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