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Web Exclusive | July 2013

Minister demands demerger of BCCL from CIL

Steel Minister Beni Prasad Verma wants the government to set up a state-run company to operate all the coking coal mines of Coal India (CIL).

The minister wants government to consolidate all the coking coal mines possessed by CIL and transfer the same to a new company.

Verma wants Bharat Coking Coal Limited (BCCL), which owns all coking coal blocks, to be de-merged from its parent firm Coal India.

In a note to the Prime Minister's Office, the ministry has projected that the country would need 89 million tonne of coking coal by 2016-17 and another 173 by 2025-26.

The coking coal mines currently lying with CIL may be de-merged from it and a separate PSU may be formed. The new "Coking Coal PSU" should concentrate on development and production of coking coal mines, the steel ministry has contended in the note.

BCCL operates 81 coal mines, including 40 underground. It has registered a production of over 30 million tonne of annual coal production and has targeted nearly 40 mn t by the end of the twelfth five year plan period.

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