The government is taking steps to merge state-owned Coal India Limited’s unit ‘CMPDI’ with Mineral Exploration and Consultancy Limited (MECL).
The letter written by the ministry: The Ministry of Mines has also written a letter to the CMPDI and the Chairman and Managing Director of MECL in this regard. The letter has sought details of the profitability, earnings, current order numbers of both the companies besides the current status of the employees for preparation of the merger. Apart from this, other information including authorized capital and paid-up capital of companies, details of assets, establishment and valuation has also been sought.
The Central Mine Planning and Design Institute (CMPDI) is the planning and design arm of Coal India. An official memorandum stated that the government has approved the merger of MECL and CMPDI. The information may be given to the Ministry of Mines to work out the modalities for preparing the Cabinet Note.
Meanwhile, PK Singh Rathore, principal general secretary of All India Association of Coal Executives, in a letter to Coal Minister Prahlad Joshi welcomed the move but expressed concern about the modalities of the merger.