GOVT DEFERS MOVE TO PULL SHUTTERS ON 64 ECL MINES
Article Abstract:
The decision to close 64 Eastern Coalfields Limited (ECL) mines, with a workforce of 71,000, has been deferred by the union coal ministry and the West Bengal government. ECL is a sick subsidiary of Coal India Limited (CIL). Revival routes are to be examined by a committee of representatives of the state government, CIL, ECL and other departments. The decision will be taken after the committee submits its report. Although the state government has reduced the cess from 45 percent to 25 percent ad valorem, this is still high compared to the national average of 17 percent and international standards of 0 to 5 percent. ECL incurred a loss of Rs542 crore in 1997-98. The reduction in cess will pave the way for better competition and higher realisation. The government holds the view that either royalty or cess must be charged to ECL. (nr)
Comment:
The decision to close 64 Eastern Coalfields Limited (ECL) mines, with a workforce of 71,000, has been deferred by the union coal ministry and the West Bengal government.
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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CIL TO SET UP `REVOLVING FUND' TO FINANCE VRS
Article Abstract:
Coal India Ltd (CIL) plans to introduce the concept of a revolving fund, with the assistance of banks and financial institutions, to finance voluntary retirement schemes at its weaker mining subsidiaries. The scheme will entail the formation of a separate fund to service borrowings for the VRS. The fund will be set up with a seed capital, which will be a percentage of the savings accruing to the company from the downsizing. The company plans to offer VRS at three of its mining subsidiaries - Eastern Coalfields Ltd, Bharat Coking Coal Ltd and Central Coalfields Ltd. CIL has planned a VRS for at least 16,000 employees, which entails a cost of Rs900 crore. (khr)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1999
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