Coal India signs MoU with Govt.
New Delhi, Mar 23 : State-run Coal India Limited (CIL) , which is the world's largest coal miner by output, signed a Memorandum of Understanding (MoU) with its Administrative Ministry - Ministry of Coal - for its key performance areas for the fiscal 2013-14.
S K Srivastava, Secretary to Government of India, Ministry of Coal and S Narsing Rao, Chairman, CIL signed the document in Delhi on March 22.
As per the MoU for the fiscal 2013-14, MoC has fixed coal production & off-take targets of 482 Million tonnes (Mt) and 492 Mt respectively against last year's coal production and off-take target of 464.1 Mt & 470 Mt respectively.
The off-take in the current fiscal till 20th March 2013 has been close to the MoU off-take target. Coal off-take has increased by about 32 Mt, as of 20 March 2013, over same period last year whereas the total increase in coal production over last year has been about 18 Mt.
The required growth rates for achieving coal production and off-take targets of 2013-14 are about 7.11 % and 5.80 % respectively.
For 2011-12, CIL's performance was rated 'Excellent'.
Under the present MoU for 2013-14, Quality & Customer Satisfaction, Research & Development, CSR & Sustainability, Human Resource Management and Project Implementation have been made as major thrust areas.
To attain the targeted off-take for 'excellent' rating, CIL has sought 212.2 railway rakes/day, on an annual basis for 2013-14, against the average availability of 167.7 rakes/day during 2011-12 and about 184 rakes/day during 2012-13. Average growth of coal movement through Rail was around 5.21% during the last 4 years whereas CIL envisages a growth of around 8.67 % through rail for achieving the above target.
The component of performance evaluation mainly consists of Financial and Non Financial parameters which carry equal weight of 50% each. The key parameters are gross margin, gross sales, financial ratios, quality of coal & customer satisfaction, project implementation, coal production, off-take & productivity, safety, HRD, CSR & Sustainability etc.
The MoU formulated on the guidelines laid down by Department of Public Enterprises is a negotiated agreement and contract between Government and the Management of Central Public Sector Enterprise (CPSE) to evaluate the performance of the CPSE at the end of the year vis- a-vis the targets fixed in the beginning of the year.