The cash-starved Eastern Coalfields Ltd (ECL) will get some respite after its holding company, Coal India Ltd (CIL), decided to extend financial assistance to the tune of Rs 270 crore.
P K Sengupta, chairman, Coal India Ltd, has made the commitment through the ECL management which was made known to the unions of ECL recently at the apex joint consultative committee meeting held recently to discuss the strategy for a proposed strike.
The strike, which was to start on 11 May in protest against closure of six mines, was deferred after the CIL assistance was announced.
Out of the Rs 270 crore, Rs 80 crore is earmarked for expenses under voluntary retirement scheme (VRS), Rs. 134 crore for the implementation of different schemes planned earlier but couldnt be taken up because funds were diverted to pay the dues of the employees, and Rs 56 crore for taking up six of the 12 fast track projects.
The unions, which protested vehemently against the closure of six unviable mines, were apparently satisfied with the commitment of CIL.
They were also assured that no mines under ECL would be handed over to the private sector.
After a recent visit to the mines of ECL, union cola minister Dilip Ray has specifically instructed for a revival plan to be taken by the subsidiary company. Accordi-ngly, R C Goyal, chairman-cum-managing director, has taken up a plan which includes production hike from the existing level of 27.4 million tonne to 30.5 million tonne in the current fiscal.
After the unions deferred the decision to go on a strike, officers were found to have been caught in a controversy. Damodar Ban-erjee, general secretary, Coal Mines Officers Association, ECL branch, has openly dissociated himself and his association from a smear campaign launched by some officers against the CMD.
ECL had been referred to Board for Industrial & Financial Reconstruction (BIFR) last October when its networth turned negative. ECL has an equity base of Rs 1039 crore but its accumulated loss mounted to Rs 1186.72 crore at the end of the last fiscal.
ECL is overburdened with excessive manpower. Its workforce now stands at 1,53,154. By the end of 1998-99, manpower will be reduced to 1,46,800 through natural wastage (4500), VRS (2500) and transfer to other CIL subsidiary companies (1,000). As part of the revival effort, a six point, cost control programme has been initiated which could lead a saving of Rs 100 crore every year.
