The Hindu Business Line : Central Coalfields no more sick, says AAIFR

THE Appellate Authority of Industrial and Financial Reconstruction (AAIFR) has given its opinion suggesting that Central Coalfields Ltd (CCL), a Ranchi based subsidiary of Coal India Ltd (CIL), should not be treated as a sick company under the purview of Sick Industrial Companies Act (SICA), 1985.

This is because the company has turned around following an improvement in production, productivity, sales realisation and labour conditions.

Though the company's net worth turned negative in 2001-02 after continuous losses for more than three successive years, the appellate authority observed that the situation had changed a lot since. The company's net worth has not only become positive now, its accumulated losses have been decreasing rapidly thanks to a favourable domestic coal market situation.

It is learnt from CCL sources that the company expects to generate profit during the current year against its accumulated losses of about Rs 685 crore in 2001-02.

Meanwhile, Mr R.P. Ritolia, Director (Technical) of Eastern Coalfields Ltd (ECL), has been appointed full-time Chairman and Managing Director of CCL.

The Union Ministry of Coal has also asked Mr Ritolia to take additional charge as CMD of ECL, to fill the vacancy caused by the superannuation of Mr Md. A. Kalam on January 31. The additional charge will continue till the appointment of a new CMD for ECL.

Incidentally, Public Enterprises Selection Board (PESB), a couple of months ago, had selected Mr Ritolia as the new CMD for CCL, Mr G.C. Chugh, Director (Technical) of Central Mine Planning & Design Institute (CMPDI), as CMD of Western Coalfields Ltd (WCL), Mr S. Choudhury, another Director (technical) of CMPDI as CMD of CMPDI, and Mr D. Chakraborty, another Director (technical) of ECL, as CMD of ECL.

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