The Hindu Business Line : Eastern Coalfields' networth may turn positive in 2008-09

Kolkata March 29 Eastern Coalfields Ltd (ECL), going by its all round improved performance in 2005-06 and 2006-07 (till date), is confident that it will be able to come out of the purview of Board for Reconstruction of Public Sector Enterprises (BRPSE) by 2008-09, by which time its net worth is expected to turn positive.

ECL is poised to make a profit of around Rs 100 crore and turnover of around Rs 4,480 crore during 2006-07. It operates 115 mines in West Bengal and Jharkhand.

Pointing out that ECL was now on an expansion mode, the Chairman and Managing Director, Mr Deepak Chakravarty, told newspersons here on Thursday that during 2005-06the company earned a maiden profit of Rs 363.86 crore.

He said the Cabinet Committee on Economic Affairs had approved a revival plan of the company during October 2006, with a guideline that the company should undertake steps for augmentation of underground and open cast production from the present level of 9 million tonnes (mt) to 13.81 mt by 2010-11. To increase departmental open cast production to the level of 33.70 mt by 2012-13, Rajmahal open cast project is being expanded from 10.50 mt to 17 mt. The Union Government has already approved the project report and the tender is under finalisation. Two greenfield projects at Chuperbhita for 4.00 MTY and Hura - `C' for 3.00 MTY are being implemented. Sonepur Bazari Project is being expanded from 3.00 mt to 8.00 mt and Chitra from 1.22 mt to 2.50 mt. These project reports are under preparation. The company proposes to invest Rs 2,591.40 crore for augmenting through internal accruals.