Even as Coal India Limited (CIL) celebrated its Foundation Day (November 1-4), one of its subsidiaries, the Central Coalfields Limited (CCL), with its operation largely spread over Jharkhand and West Bengal had more reasons to rejoice.

Conferred the status of Mini Ratna (Category I) by the Union government recently, the CCL has not only earned the reputation of becoming the first PSU in Bihar and Jharkhand to be decorated with the status but has also emerged as the highest corporate taxpayer in the two states. The CCL feat appears stupendous in the backdrop its negative net worth till recently.

The CCL turnaround received other acknowledgements as well. Its Chairman and Managing Director (CMD), R P Ritolia, has been chosen for the prestigious Indira Gandhi Memorial National Award 2007 for the “Best Chief Executive”.

Ritolia foresees a bright future for CCL as the company is registering a progressive increase in coal production every year. The CCL employees attribute the robust growth to the company’s composite work culture where employees from lowest to highest echelons work cohesively and speak in unison.

The CCL CMD spoke to Sandeep Bhaskar of Deccan Herald during the CIL Foundation Day celebrations.

Excerpts from the interview:

Deccan Herald: The CCL story is fascinating. What really brought about the turnaround?

R P Ritolia: It was made possible only by changing the mentality of the workers. I strongly maintain that every individual has the potential. But when my tryst at CCL began, I found the morale of its workers at a low. Among the very first steps we took was to make the workers understand that they are capable of bringing about a turnaround and they did it by sheer determination. Neither has any new colliery been opened nor has any major equipment inducted during this turnaround.

DH: Okay, what is Mini Ratna status is all about? And again in your opinion what won the prestigious award of best chief executive for you?

RPR: In pursuance of the objective to make the public sector more efficient and competitive, the government of India confers on select profit making units the Mini Ratna status that provides for enhanced autonomy, subject to the eligibility criteria and guidelines. Those conferred the status under category I, should have made profit in the last three successive years, the pre-tax profit should have been Rs 30 crore or more in at least one of the three years and should have a positive new worth.

However, I do not know whether I deserve the best chief executive award or not. On my part, I tried to project a composite corporate culture where down from a miner to the top brass, everyone believed in working as cohesive force and speaking in one voice.

DH: Is the CCL eyeing the Navaratna category benchmark after the Mini Ratna status?

RPR: The future of the company is very bright. Within six years of witnessing losses to the tune of Rs 1102.76 crore and being appraised at a negative net worth of Rs 162.76 crore, our profits now stand at Rs 1020.40 crore and the positive net worth is Rs 1686.28 crore. Again ours is the highest tax-paying corporate organization in Bihar and Jharkhand. The company will this year produce 44 million tonnes of raw coal, around 6.5 per cent more than the production last year. During the first six months of this financial year, the company has already produced 14.48 million tonnes as against 13.63 million tonnes during the corresponding period last year. Besides, there has been 17 per cent growth in overburden removal during the current fiscal.

We hope to make a difference and I have little doubt that we would be Coal India’s most happening subsidiary sooner or later.

DH: You attribute the success to your workers and the work culture in your company. So what has CCL planned for its employees’ welfare and miners’ safety?

RPR: Let me tell you that over the years, mishaps in our mines have gone down. We are very categorical when it comes to the safety of miners. Besides issuing a clear instruction to avoid excavation work where risk lurks, the CCL has also taken a number of steps which includes extensive use of safety related slogans in the mining area with our primary focus on the safety of our employees.

As far as the employees’ welfare is concerned, over the years CCL has displayed tremendous sensitivity towards its corporate responsibilities. Our budgetary allocations for community development and welfare programmes have been consistently going up. We hope to make significant improvement in the quality of life of our employees. We have sanctioned Rs 28 crore for providing better sanitation, housing and access to drinking water for them.

DH: Environment pollution is yet another problem rampant in colliery areas. Has CCL any plan on this front?

RPR: The CCL has planted more than 5 lakh saplings in mining areas in association with the forest department. This apart, steps have already been taken to obtain ISO 14000 certification for several mines of CCL. It will monitor the environment aspect. Our Piparwar and North Karanpura mines have already been issued such certification. The company has already provided water tankers in the mine areas for dust suppression.

DH: Death of illegal miners has virtually become a recurring feature in the abandoned mines of CCL. The worst part of the story is that the coal companies are accused of leaving the mines at the mercy of gangsters after the excavation of coal. What do you have to say?

RPR: Deaths rarely happen in our abandoned mines as we fill the excavated areas with sand and other material. But sometimes villagers locate some weak spot in the closed abandoned mines.

On our part, we are preparing a project to fill all such spots in our abandoned mines. The company has asked the CMPDI (Central Mine Planning & Design Institute), Ranchi to prepare a report on the same.