Coal India signs MOU with Government
The Ministry of Coal signed a Memorandum of Understanding (MoU) with Coal India Limited (CIL), the Navratna coal mining PSU for its key performance areas for the fiscal 2010-11. Shri C Balakrishnan, Secretary to Government of India, Ministry of Coal and Shri Partha S Bhattacharyya, Chariman CIL signed the document to this effect, as per a statement issued by the Ministry.
As per the MoU for the fiscal 2010-11, CIL’s targeted production and coal off-take have been pegged at 461.5 Million Tonnes (MTs) and 462.5 MTs respectively for attaining an ‘Excellent’ rating. Incidentally for previous two fiscal i.e 2007-08 & 2008-09 CIL was rated ‘Excellent’.
The MoU for 2010-11 puts special emphasis on Research & Development and Corporate Social Responsibility(CSR) which have been identified as major thrust areas. To attain the targeted off-take, CIL sought 185 rakes/day for 2010-11 as against the average availability of 155 rakes/day during previous and current fiscals.
The R&D activities will see a quantum jump from the present Rs. 15 core earmarked annually for the purpose to twice that amount, Rs.30 core. In a proactive measure CIL has stepped up its budget on CSR activities to 5% of the retained earnings of previous year, subject to minimum of Rs. 5/- per tonne of coal production of previous year whichever is higher. Earlier, Rs. 1/- per tonne of coal produced was earmarked for CSR activities.
The component of performance obligation mainly consists of Financial & Non Financial parameters which carry equal weight of 50% each. The key parameters are gross margin, gross sales, financial ratios, quality of coal, coal production, off-take & productivity, customer satisfaction, HRD (training policy etc), safety (fatality /MT) and environmental managements 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-s-vis the tagets fixed in the beginning of the year.