Coal India arm CCL seeks reconciliation of Jharkhand govt's Rs 56,000 cr dues demand
Jharkhand-based Coal India arm CCL has sought 'reconciliation' of amount of claims post the state government slapping the behemoth with a whopping demand of Rs 56,000 crore in lieu of land allotted to it for mining.
Jharkhand Chief Minister Hemant Soren had on Friday sought immediate payment of Rs 56,000 crore "dues" to the state from the coal giant in addition to payment of royalty on coal on 'ad valorem' basis when CIL Chairman cum Managing Director (CMD) Pramod Agarwal called on him.
The PSU - the world's largest coal miner that accounts for about 80 per cent of the domestic dry-fuel production has been at loggerheads with state for long over the dues and the state way back in 2014 had sought Rs 25,000 crore as 'preliminary' amount from Coal India Ltd for excavating coal in the state without paying any compensation to it.
"We have sought reconciliation of the amount of claims from the state government," Jharkhand-based CIL arm Central Coalfields Ltd Chairman cum Managing Director PM Prasad told PTI.
Prasad, who is also the acting chief for Bharat Coking Coal Ltd (BCCL), said the amount sought by the state pertains to three of the Coal India arms - CCL, BCCL and Eastern Coalfields Ltd (ECL) and CIL has given application against the claimed amount requesting for reconciliation.
The CCL chief said they were hopeful for a positive outcome as CIL is a CPSU.
A state government official said that the amount has been sought in lieu of land allotted to CIL for various projects in the state over a period of time.
Jharkhand chief minister Soren has asked the CIL chairman to initiate steps for immediate payment of Rs 56,000 crore by Coal India to Jharkhand in lieu of land allotted to it for mining.
Unhappy over slow rehabilitation work on Jharia coal mines, Soren also asked Agrawal to ensure expediting rehabilitation work as well as steps to douse fire there.
Coal India Chairman and Managing Director Pramod Agarwal did not respond to repeated calls and queries in this regard.
If the PSU under the administrative control of Ministry of Coal has to pay the whopping sum to the state, it could lead to erosion of the cash reserves of the world's largest miner that recommended a final dividend of Rs 3.50 per equity share of face value of Rs 10 each for the financial year 2020-21.
The coal giant in June reported a marginal 1.1 per cent decline in its consolidated profit at Rs 4,586.78 crore for the quarter ended March 2021 on the back of lower sales.
The production of CIL during the quarter dropped to 203.42 million tonnes (MT) over 213.71 MT in the corresponding quarter of 2020.
The company's offtake during the January-March period was at 164.89 MT, over 164.33 in the corresponding quarter of 2020.
The company is eyeing one billion tonnes of output by 2023-24.
Coal India Limited (CIL) is the single largest coal producer in the world and one of the largest corporate employers with manpower of 272445 (as on 1st April, 2020).
CIL functions 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 One mine planning and consultancy company that is 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 i.e. North Eastern Coalfields is managed directly by CIL.