CIL may not be able to meet high production target in absence of S Narsing Rao

KOLKATA: Coal India has been headless since its chairman S Narsing Rao tendered his resignation a week ago and there has been no announcement on his replacement or even appointment of an acting chairman. This could make it difficult for the company to meet its steep production target for the current fiscal that requires a growth rate of at least 10%, a board member of the state-run monopoly miner told ET.

"In the absence of a full-time chairman, decisions on large investments tend to be put on hold although theoretically, investment and policy decisions can be taken by the board even with an acting chairman," said the board member, who did not wish to be identified. CIL’s personnel department officials said they had no information about release of Rao, who continues to be on leave.

The vacuum, if prolonged, could keep the company from finalising plans to invest in new mines at its various subsidiaries, for example. It also needs to clear pending infrastructure investments that would open up ways of evacuating coal stuck at stockyards.

According to people familiar with the matter, AK Dubey, additional secretary at the coal ministry, may be given additional CIL charge in the interim. "The government is also considering a proposal to split the company into its subsidiaries," said the board member cited earlier.