New Delhi, Jun 5 (PTI) An association of serving and retired executives of Coal India Ltd has sought a wider consultation over the the proposal to separate the state-run firm's exploration, planning and design arm CMPDI from the company.

The All India Association of Coal Executives (AIACE) wrote to Coal Minister Pralhad Joshi on Thursday, alleging that the proposed move to split the Central Mines Planning and Design Institute (CMPDIL) from Coal India is aimed at "clearing the deck" for private consultancy companies.

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"Coal executives and employees are apprehending that Government of India may separate CMPDI from Coal India Ltd. The move is probably intended to open the door for private coal companies to utilise its services," the AIACE said.

The association said it is not sure whether the proposal to split CIL into smaller entities will serve the purpose or not, but certainly it will create problems for survival of CMPDIL.

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"The proposed move to separate CMPDIL from CIL is aimed at clearing the deck for private consultancy companies that had been mushrooming in India after the coal sector was opened up in 1993," it said.

Even though about 42 billion tonnes of coal reserves had been allotted to private players as captive mines, coal output from these private mines has barely reached 39.75 million tonnes against the projected target of 100 million tonnes, it said.

The belief that private players will augment output by manifold has been proved wrong, the AIACE added. "The thinking that CMPDI will extend its services to private miners in an impartial mode by coming out of the clutches of CIL is not sustainable," the association said. "Auctioning of coal blocks, based on bidding by private players, will always require need of engaging individual consultant by every private player. So, in this process CMPDI can never assist the private players. It can only assist the operating private miners of the coal blocks. In the present organisational set-up also, CMPDI is assisting in the similar way," it said. Although remaining an arm of Coal India, CMPDI enjoys a privilege of being the sole advisor of government channelising its advice via NITI Aayog. Its scope of work can be further enlarged by converting it into an agency to act as the coal regulatory body for monitoring and controlling various activities of all coal miners, the association said.

"While we cannot question the prerogative of government to go ahead with its thinking, we will certainly request for a wider discussion on this subject while arriving at a final decision," it said.

The AIACE proposed formation of a high-power panel of experts, drawn from various fields including representatives from employees and executives associations of CIL, to examine the issue and suggest measures in the best of national interest as well as welfare of the employees. "It is further added that employees' interest must not be overlooked while taking final decision on separation of CMPDI from CIL," the letter said.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)