Deloitte suggests 'internal changes' to reform Coal India

The consultancy firm recommended Coal India to set up independent regional companies

Consultancy firm Deloitte Touche Tohmatsu India Pvt Ltd, which was selected to study the restructuring of Coal India, has recommended to the government options such as reforming the company and its nine subsidiaries through 'internal changes in structure, systems and roles.'

The consultancy firm also suggested to the coal ministry to set up independent mega regional companies or to create independent entities in a phased manner with the continuation of the holding company during the transition, according to a coal ministry document.

The coal ministry had appointed Deloitte on September 16, 2013, to study the need for restructuring Coal India. The mining company, which accounts for over 80% of domestic coal production, has repeatedly failed to achieve its output target.

Deloitte also made certain recommendations to be implemented throughout the organisation, irrespective of the restructuring exercise, according to the document.

These include greater use of private public participation in mine development and operations, and technology adaptation through joint ventures and collaborations with global companies, the document said.

Deloitte also suggested restructuring options for Central Mine Planning and Design Institute Ltd (CMPDIL), Coal India's consultancy unit.

Deloitte said CMPDIL should either become an autonomous body under the coal ministry or a Coal India subsidiary with a sector planning department.

Coal India produced 462 million tonnes of coal in 2013-14, missing the target of 482 million tonnes. In 2012-13, Coal India's output was 452.5 million tonnes, short of the target of 464 million tonnes.