Suresh Prabhu Led Advisory Panel for More Empowered Players in Coal Mining

The main subsidiaries of coal may have the adequate delegation by the integrated power sector as an overhaul was led by the coal ministry sector lead, Suresh Prabhu.

Since the administration (the government) made the base for the renovation of the coal mining sector, Suresh Prabhu led advisory set for integrated power sector development that which is assembled with the coal and renewable energy. This has let down the scheme of reforming the sector’s monopoly Coal India. Instead of that, it has suggested the theme of empowerment as its subsidiaries in its report has been submitted to the government in the month of December ‘14.

“Subsidiaries of Coal India may be given adequate delegation of power capital expenditure and operational flexibility and along with that the commensurate accountability, so that their dependence on CIL, for decision making, does not hamper fulfilment of targets set out for them,” said the advisory group report revised by the Business Standard team.

Formerly, there have been some allegations of dividing CIL into 5 different companies to develop its effectiveness. As the earlier UPA government accepted the theme, Piyush Goyal, the minister of state for the coal, power and renewable energy under NDA government has declared that dividing is not the exact thing that is necessary, the real development is.

“Several options regarding the restructuring of Coal India were discussed. It was agreed that no major restructuring is required, at least in short term,” gave the statement by the report.

For the improvement of coal production, the report proposes of having the complimentary of Mining Development Operation (MDO) agencies and re-opening the banned underground mines. “Ministry of coal to give target to each subsidiary to engage at least two MDOs (10 million tonne annual production) each, within six months,” suggested the report. The members of the team were asked for the deep viewing of more CIL targets towards the developing years, 2014-15, on suspicious terms. Even with that, slot in the knowledgeable counselling agency which could claim in advising the concert. To deal with accessibility of coal, the report intervals the need of transaction of coal, rationalisation of coal linkages and having of surplus coal sale from captive mines.

“Then finally termed on having a ‘coal regulator’ through legislative route, including ordinance to address issues involving various stakeholders,” said the report. The team was read by Suresh Prabhu who is union railway minister and former power minister in A B Vajpayee’s term. The other members of the team were R V Shahi, (Former Power Secretary) as Member-Convenor, Pratyush Sinha (Former Chief Vigilance Commissioner), Anil Baijal (Former Home Secretary), Anil Khandelwal (Former Chairman, Bank of Baroda), K.K. Nohria (Former CEO, Crompton Greaves), Partho Bhattacharya (Former CMD, Coal India), and Vallabh Bhansali (Former CEO, ENAM) as Members.