HISTORY OF COAL INDIA LIMITED || CIL 2021

HISTORY OF COAL INDIA LIMITED 

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With dawn of the Indian independence a greater need for coal production was felt in the First Five Year Plan. In 1951 the Working Party for the coal Industry was set up which included representatives of coal industry, labour unions and government which suggested the amalgamation of small and fragmented producing units. Thus the idea for a nationalized unified coal sector was born. Integrated overall planning in coal mining is a post-independence phenomenon. National Coal Development Corporation was formed with 11 collieries with the task of exploring new coalfields and expediting development of new coal mines.

Factors which led up to Nationalization of Coal Industry in India

Nationalization of coal industry in India in the early seventies was a fall out of two related events. In the first instance it was the oil price shock, which led the country to take up a close scrutiny of its energy options. A Fuel Policy Committee set up for this purpose identified coal as the primary source of commercial energy. Secondly, the much needed investment needed for growth of this sector was not forthcoming with coal mining largely in the hands of private sector. The objectives of Nationalization as conceived by late Mohan Kumaramangalam were; Conservation of the scarce coal resource, particularly coking coal, of the country by

• Halting wasteful, selective and slaughter mining.
• Planned development of available coal resources.
• Improvement in safety standards.
• Ensuring adequate investment for optimal utilization consistent with growth needs.
• Improving the quality of life of the work force.

Moreover the coal mining which hitherto was with private miners suffered with their lack of interest in scientific methods, unhealthy mining practices etc. The living conditions of miners under private owners were sub-standard.

Formation of Coal India Limited:

With the Government's national energy policy the near total national control of coal mines in India took place in two stages in 1970s. The Coking Coal Mines (Emergency Provisions) Act 1971 was promulgated by Government on 16 October 1971 under which except the captive mines of IISCO, TISCO, and DVC, the Government of India took over the management of all 226 coking coal mines and nationalised them on 1 May, 1972. Bharat Coking Coal Limited was thus born. Further by promulgation of Coal Mines (Taking over of Management) Ordinance 1973 on 31 January 1973 the Central Government took over the management of all 711 non-coking coal mines. In the next phase of nationalization these mines were nationalized with effect from 1 May 1973 and a public sector company named Coal Mines Authority Limited (CMAL) was formed to manage these non coking mines.

A formal holding company in the form of Coal India Limited was formed in November 1975 to manage both the companies.