CIL arm CCL seeks reconciliation over Jharkhand’s Rs 56,000 cr dues claim to Coal India, Energy News, ET EnergyWorld
Jharkhand Chief Minister Hemant Soren had on Friday demanded from the coal giant the immediate payment of Rs 56,000 crore in ‘duties’ to the state in addition to the payment of coal royalties on an ‘ad valorem’ basis. when CIL President and Chief Executive Officer (CMD) Pramod Agarwal appeals to him.
the power supply – the world’s largest coal miner, which accounts for about 80% of the country’s dry fuel production, has long been at odds with the state over dues and the state in 2014 demanded Rs 25,000 crore as “preliminary” amount of Coal India Ltd for mining coal in the state without paying him any compensation.
“We have sought to reconcile the amount of the state government’s claims,” Chairman and Managing Director of Central Coalfields Ltd, CIL’s Jharkhand subsidiary, PM Prasad, told PTI.
Prasad, who is also the acting head of Bharat Coking Coal Ltd (BCCL), said the amount requested by the state relates to three of the Coal India weapons – CCL, BCCL and Eastern Coalfields Ltd (ECL) and CIL filed a claim against the claimed amount requesting a reconciliation.
The head of the CCL said that they hoped for a positive result because the CIL is a CPSU.
A state government official said the amount was requested in lieu of land allocated to CIL for various projects in the state over a period of time.
Jharkhand Chief Minister Soren has requested the CIL Chairman to take action for the immediate payment of Rs 56,000 crore by Coal India in Jharkhand in lieu of the land allocated to him for mining.
Unhappy with the slow pace of rehabilitation works at the Jharia coal mines, Soren also asked Agrawal to ensure the acceleration of the rehabilitation works as well as measures to put out the fire there.
Coal India Chairman and Managing Director Pramod Agarwal did not respond to repeated calls and questions in this regard.
If the UAP under the administrative control of Ministry of Coal has to pay the huge sum to the state, this could erode the cash reserves of the world’s largest miner who has recommended a final dividend of Rs 3.50 per share with a face value of Rs 10 each for the financial year 2020-21.
The coal giant announced in June a marginal drop of 1.1% in its consolidated profit to Rs 4,586.78 crore for the quarter ended March 2021 due to lower sales.
CIL’s production in the quarter fell to 203.42 million tonnes (MT) from 213.71 MT in the corresponding quarter of 2020.
The company’s drawdown in the January-March period was 164.89 MT, compared to 164.33 MT in the corresponding quarter of 2020.
The company is targeting one billion tons of production by 2023-2024.
Coal India Limited (CIL) is the world’s largest coal producer and one of the largest employers with 272,445 employees (as of April 1, 2020).
CIL operates through its subsidiaries in 84 mining areas spread over eight (8) states of India including Jharkhand.
CIL has seven producing subsidiaries, namely Eastern Coalfields Limited (ECL), Bharat Coking Coal Limited (BCCL), Central Coalfields Limited (CCL), Western Coalfields Limited (WCL), South Eastern Coalfields Limited (SECL), Northern Coalfields Limited ( NCL) and Mahanadi Coalfields Limited (MCL) and a mining planning and advisory company which is the Central Mine Planning and Design Institute (CMPDI).
In addition, CIL has a foreign subsidiary in Mozambique, namely Coal India Africana Limitada (CIAL). The mines in Assam, ie North Eastern Coalfields, are managed directly by CIL.