Indian State Electricity Boards Biggest Contributor to CIL’s Woes
CIL is the world’s second largest coal supplier and the largest corporate employer in India. This owes mainly to its improved functioning and transparency in operations.
(PRWEB) June 22, 2006
Coal India Limited has many advantages. It is a large company with an appropriate infrastructure. Currently its coal output is about 300 million tones. In 2004-05 it acquired a turnover of about Rs.306.60 billion. And to add on to everything it does not fear expulsion from the market by private investors even if they have a large contribution in the domestic coal-mining sector.
CIL ranks second largest in world coal supply. At home it is the biggest corporate employer having strength of 462,000 people. Financially too it is strong occupying a position among the largest five companies in the country. In the fiscal 2005-06, CIL earned a net profit of more than Rs.6,100, a 43% increase over fiscal 2004-05.
CIL’s present level of performance is attributed to the improved functioning at the mine level as also the transparency it has imbibed in its operations and tendering process.
Other factors that contribute to the company’s achievements are large reserve of resources enabling large-scale production, greater sales security, expanded growth, skilled and trained workforce, experienced and supportive management, healthy relations between union and management, and cordial relations with customers.
RNCOS, in their market research publication of “Indian Coal Industry: Opportunities for Growth (2006)” reveals that CIL’s weaknesses lie in its foreseeable financial crisis further added with its major consumers, State Electricity Boards (SEBs) already undergoing financial difficulties.
Some other deficiencies include:
· Coal output with a high ash content.
· Major consumers located at a distance.
· Old mines still in possession.
· Too many working people.
· Limited ability in relocating manpower.
Surprisingly these are in contrary to the strengths that the company exudes in terms of proven reserve, supportive trade unions, and cooperative clients.
The market research report provides an in-depth analysis of the present scenario and future forecast of the Indian coal industry. It also gives an overview of the Indian coal sector with focus on performance of its key players.
The report enumerates a global analysis of coal production and consumption, a comparison between the world scenario and Indian coal sector. There is also discussion of emerging trends and developments and about new coal projects.
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