Coal India (CIL) sees competition increasing in the coal business in days ahead as the government works to open commercial coal mining for private players. But the PSU has not lost nerves. Rather, it has started preparing itself to take on private competition. That is reassuring.
The PSU has been struggling to step up production. Its production costs too have been going up. That is not in the national interests.
Because of coal shortage, power plants suffer generation loss. Unable to get the adequate power supply, discoms resort to load-shedding, impacting industrial and other business-related activity.
The CIL must step up production to meet fuel requirement of its customers. It should also raise its operational efficiency to keep coal prices from rising sharply as the fuel makes up for 70-80% of electricity generation costs. If electricity prices are too high, the domestic industry could lose its competitiveness.
When private players enter the coal market, CIL will have to get its act together. Otherwise, it could lose the market share. Let’s hope that the PSU raises its operational efficiency under competitive pressure.
The CIL seems to have taken the coming challenge seriously.
"More challenging times are ahead. Soon, mines for commercial exploitation will be offered to the private sector and in the not-too-distant future, private sector production may turn out to be significant," CIL chairman Gopal Singh recently reportedly told employees of all subsidiaries in a closed-door video address.
This was the first of its kind interaction by CIL chief when he congratulated employees on their promotion and heard their problems.
That is the way to go.
Posted By : Admin
Posted Date : 05-10-2018