Question : OUTSOURCING POLICY FOR COAL COMPANY



(a) whether the Government proposes to promote outsourcing policy in every coal company of the country;

(b) whether a team of high level Government officials was sent on foreign tours by the Government to study the matters regarding implementation of outsourcing policy, production of coal etc;

(c) if so, the details thereof;

(d) whether the said team has submitted its reports; and

(e) if so, the details thereof ?

Answer given by the minister


MINISTER OF THE STATE IN THE MINISTRY OF COAL (DR. DASARI NARAYANA RAO)

(a): No, Sir. The Government does not propose to promote outsourcing policy in the coal companies of the country. However, in view of increasing demand of coal and in order to achieve better economics of operations, Coal India Limited and its subsidiaries have undertaken some of the activities through outsourcing by hiring of equipments in some of its mines to build additional capacity of production, to avoid initial capital investment and to reduce cost of production. Activities which are outsourced are mainly mechanised extraction of coal and transport, removal of over burden in some of the open cast mines. In addition, transport of coal and sand are also done in some mines through hiring of equipments.

(b): Two teams of senior officers of Coal India Limited and its subsidiary companies were sent to foreign countries to study overall mining operations and various systems and technologies being adopted by them for achieving higher productivity.

(c): Out of the two teams, one team consisting of six officers had visited Australia from 2nd April to 17th April, 2005 and another team also consisting of six officers went to Indonesia from 3rd April to 17th April, 2005 to study manpower, equipment utilization, contracting of mining activities, marketing etc.

(d): Yes, Sir.

(e): Information is being collected and shall be laid on the table of the house.