History of Coal India Limited
In order to provide for higher growth in the coal sector to meet the growing energy needs of the country, the Government in 1973, nationalized the coal mines by enacting the Coal Nationalization Act. Pursuant to the nationalization of coal mines, our Company was incorporated as a private limited company with the name of ‘Coal Mines Authority Limited’, under the Companies Act on June 14, 1973, and in terms of notification no. G.S.R. 345(F) dated July 9, 1973, issued pursuant to the provisions of Section 5 of the Coal Nationalization Act certain nationalized coal mines were vested in our Company by the Central Government.
Thereafter in 1975, the Department of Coal, Ministry of Energy, GoI, with a view to integrate and streamline the structural set up in a manner that could be conducive to a more efficient administration, issued letter no. 38011/1/1/74-CAF dated September 27, 1975, providing for the re-organization of ‘Coal Mines Authority Limited’ as ‘Coal India Limited’, which was to be responsible for the entire coal mining sector owned and controlled by the Central Government. Pursuant to the nationalization of coal mines and during the period up to 1991, our Company was able to enhance the growth rate of coal production from a CAGR of 2.18% at the time of nationalization in Fiscal 1974 to a CAGR of 5.63% by Fiscal 1991. However during this period, due to certain macro-economic and socio-economic factors, our Company continued to operate certain legacy mines inherited pursuant to the nationalization and to operate certain new projects irrespective of financial viability. Further, on account of certain internal reasons and policy issues, our Company’s accumulated losses in Fiscal 1991 and overdue liabilities to the Government in Fiscal 1993, reached Rs. 24,989.80 million and Rs. 23,113.10 million respectively. Thereafter, post-1991 upon our Company achieving certain milestones and certain policy changes initiated by the Government our Company endeavoured to consolidate its financial position. The ‘Major Events and Milestones’ of our Company since inception is listed below.
Major Events and Milestones at Coal India:
Source: http://www.coalindia.in
