The consultancy arm of CIL is going for a major reorganisation and shift in its business areas including looking for overseas businesses to survive in future
One of Coal India Ltd's (CIL) own subsidiaries has raised concerns over the future of its parent.
Central Mine Planning & Design Institute Ltd (CMPDI), CIL's technical consultancy wing, has flagged off the existential crisis telling prospective consultants that since coal is fast being replaced by renewable energy sources like solar, wind, there could be a dip in coal mining in future leading to shrinkage of consultancy assignments.
CMPDI, it has said, also faces threat from greater liberalisation with the opening up of the sector to private power, steel and cement makers as well as merchant mining companies.
The consultancy arm of CIL is going for a major reorganisation and shift in its business areas including looking for overseas businesses to survive in future.
"Indian coal sector is inching towards greater liberalisation. Earlier it was a mainly a public sector domain having almost full control on coal production and distribution. This status is now getting diluted... Coal is fast being replaced by renewable energy sources like solar, wind etc. If coal mining takes a downtrend, it may lead to shrinkage of consultancy assignments to CMPDI," the subsidiary has told prospective consultants while inviting proposals to draw up a game-changing business plan for its future.
CMPDIL is one of the nine subsidiaries of CIL, which works for its parent in providing with all pre-mining technical knowhow as well as to outsiders. It also advices coal ministry on coal auction and development of new fuels like coal-bed methane, coal to liquid and also shale gas.
Formed in 1975, CMPDI created core competency through bilateral pacts with erstwhile USSR, Kopex of Poland and British mining consultants for carrying out joint planning exercises for large opencast and underground projects, CIL officials said.
However, over the years, CMPDI's expert manpower has been fast depleting with many of its experienced technical experts retiring or moving out, sources said.
Emergence of small consultancy firms comprising of former CIL and CMPDI employees having its know-how and also entry of foreign mining consultants have created new competition, the subsidiary has told prospective bidders.
The development comes when CIL is set to distribute a whooping Rs 11,843 crore as dividend in absence of any major investment avenues.
CIL on Monday announced a dividend of Rs 18.75 per share dividend and the outflow would largely benefit its principal shareholder, the government.
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"Indian coal sector is inching towards greater liberalisation. Earlier it was a mainly a public sector domain having almost full control on coal production and distribution. This status is now getting diluted... Coal is fast being replaced by renewable energy sources like solar, wind etc. If coal mining takes a downtrend, it may lead to shrinkage of consultancy assignments to CMPDI," the subsidiary has told prospective consultants while inviting proposals to draw up a game-changing business plan for its future.
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