9 firms shortlisted for Coal India restructuring

9 firms shortlisted for Coal India restructuring

9 firms shortlisted for Coal India restructuring

 Amid 17 major players evincing interest in restructuring world's largest coal miner CIL, the government has shortlisted nine firms for the task.

"The Coal Ministry has shortlisted nine firms out of 17 applications it received with regard to the appointment of advisors for restructuring of Coal India," a source said.

The ministry had received applications from the firms like McKinsey, KPMG, Ernst & Young, Deloitte and Crisil.

However, the source refused to name the firms which have been shortlisted.

"The ministry has already held a pre RFP (Request For Proposal) and it is likely that by June-end the RFP would be finalised," the source added.

The Coal Ministry had in January invited bids for the appointment of advisors for restructuring of the coal PSU.

In December, it had informed the Prime Minister's Office about the move to appoint consultants with international expertise and to frame timeline for restructuring the state- owned miner.

The Planning Commission and various high-level panels, including Expert Committee on Road Map for coal sector reforms - also known as T L Shankar Committee - have recommended restructuring of CIL keeping in view of rapidly increasing demand of coal and the need for enhancing production as well as to make the coal sector competitive.

It has been proposed to take up a study "to assess the need for restructuring of CIL in light of the avoidance of drawbacks inherent in a monopolistic situation," and "to prepare a road map for smooth transition towards proposed restructuring," among others, the ministry had earlier said.

The Planning Commission had suggested spinning off CIL subsidiaries into separate entities so that each one of them can pursue its own goals, amid growing supply deficit of coal.

World's largest coal miner CIL has seven subsidiaries such as Bharat Coking Coal Ltd (BCCL), Central Coalfields Ltd (CCL), Eastern Coalfields Ltd (ECL) and Central Mine Planning and Design Institute Ltd. The coal producer has 3.71 lakh employees.

The Planning Commission has estimated that the coal imports could go up to 185 million tonnes (MT) at the end of the 12th Plan based on total coal demand of 980 MT and domestic supply of 795 MT.