Question

southern power distribution company of telangana limited

Answer 1

Coal India Limited (CIL), the single largest coal producer in the world, is one of India’s coveted state-owned companies. Fittingly it is called a Maharatna (meaning most precious jewel), a title conferred by the Indian government to select companies with the potential to become global giants. Born out of the nationalization of private coal companies in 1975, as of 2016, CIL and its eight subsidiaries (seven wholly-owned coal producing subsidiary companies and one mine planning and consultancy company) produce 84 percent of India’s coal, and supply coal to 98 out of 101 coal-based thermal power plants in India. Earlier this month, Reuters published an internal document discussing a proposal to break up CIL into seven parts to make it more competitive and efficient, and a more attractive prospect for divestment. Thus CIL looks set to come full circle: broken-up and privatized for the very reasons it was monopolized and nationalized in the first place. Despite the traction for renewables in India, the country is and will continue to be dependent on coal. With India’s growth plans and energy independence in the balance, the future course of CIL is a high-stakes decision.