23rd April, 2003
Ministry of Coal  


DECENTRALISATION OF PURCHASING POWERS OF C.I.L.


RAJYA SABHA

The Government have decided that all powers exercised by Coal India Limited (CIL) relating to procurement of all items, except procurement of explosives be delegated to its coal producing subsidiaries. Accordingly, CIL have been directed to take necessary steps in this regard.

The Government have also directed CIL to delegated powers relating to marketing in the non-core sector in case of Mahanadi Coalfields Limited, Western Coalfields Limited and South Eastern Coalfields Limited to the respective subsidiary companies.

The objective behind the move is to enable CIL to focus and concentrate on providing overall guidance and direction in terms of medium and long term strategic planning, coordination and monitoring of the implementation of strategic decisions. By unburdening itself of operational responsibilities that can easily be handled by subsidiary companies, CIL will be able to contribute better towards achieving the crucial target of increased production and turn around. This move would also make the subsidiaries more competitive and result in quicker decision making at the operational level.

This information was given by the Minister of Coal, Shri Kariya Munda, in a written reply to a question in the Rajya Sabha today.