Coal shortages are back: Low productivity of CIL haunts sector

Even as the government gets ready for commercial auction of mines, the low productivity of Coal India haunts the sector

Last month, ten companies that transport sand to and coal from Western Coalfields, a subsidiary of Coal India Limited (CIL), were fined  Rs 11.8 crore for rigging bids to win the contracts. The Competition Commission of India order, on a complaint by the Mini Ratna company, also imposed fines on eight officials of these operators. These companies are among  hundreds that dot Nagpur and nearby towns, running on low-technology operations that earn high returns by exploiting shortages. 

The irony of this scandal is that it reflects the persistent shortfall in coal supply even after the Supreme Court’s landmark verdict three