When Mr S. Narsing Rao took over the reins of Singareni Collieries Company Ltd (SCCL) in September 2006, the Andhra Pradesh undertaking was producing a mere 36 million tonnes (mt) of coal. Annual production was growing at about 2-2.5 per cent on an average, substantially lower than the then zooming production graph of Coal India Ltd, the big daddy of Indian coal, .

A little over five years later, when Coal India's growth has remained stagnant for the second year in a row, Singareni is producing nearly 42 per cent more coal (51 mt). The company's annual production growth rate (compound annual growth rate) of 8 per cent has been nearly double that of Coal India during the first four years of the 11th Plan (2007-12).

Though restricted within Andhra Pradesh, the company has given Coal India a run for its money on almost all basic operational parameters and project implementation in the recent past.

While the latter's bid to enter high-capacity underground mining is far from becoming reality as of now, Singareni has lined up two large projects of nearly 3 mt each that are slated to be on stream in 2013.

The story is more or less same in procuring mass-production equipment, implementation of enterprise resource planning and others.

Mr Rao, 53, has been selected (a panel of the Public Enterprises Selection Board recommended him recently) to be one of the youngest chairmen of the world's largest coal producer, not giving priority to competition from Coal India family. If appointed, he will be the first non-Coal India candidate to assume the top job since July 1983.

Immediate goal

But will he be able to bring about a quick change in Coal India's fortunes? Though not ready to jump the gun before he is formally appointed, Mr Rao sets his sight on opencast production. “One should look at implementation of opencast projects of over 10 million tonne each at Northern Coalfields, South Eastern Coalfields and Mahanadi Coalfields for posting a production growth in 18-24 months,” he told Business Line .

He underlines that this could be an immediate solution to bring the company back on the rails. The longer-term growth perspective should be considered.

Coal India insiders point out that handling a holding company solely dependent on independent managements of eight production companies (many of which are mini- ratnas and will sooner or later be upgraded to navaratnas ) and that is not free from the pushes and pulls of political masters in five States as well as the Centre may be difficultfor Mr Rao.

“His successful stint in SCCL definitely speaks in favour of his selection. However, managing multiple stakeholders when compared to SCCL, is a different ball game,” a retired top official of Coal India said.

Having spent a fairly long period in the Indian Administrative Service, Mr Rao is understandably aware of the challenges ahead. But for the moment the future rests on due clearances from vigilance for a smooth succession.

> pratim@thehindu.co.in

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