Question : DEBT ON COAL COMPANIES

(a) whether some coal companies are running at loss;

(b) if so, the reasons thereof;

(c) the debt burden of each coal company at present; and

(d) the steps taken by Coal India Limited to refund the debt?

MINISTER OF STATE FOR MINES & MINERALS (SMT. RITA VERMA)

(a) The three subsidiary companies of Coal India Limited (CIL) namely, Eastern Coalfields Limited (ECL), Bharat Coking Coal Company Limited (BCCL) and Central Coalfields Limited (CCL), have incurred loss as on 31.3.99.

(b) The reasons for the loss incurred by these three companies are as under:-

i) Large number of deep old mines mainly underground and fire in coal seam adjacent to the mining area.

ii) Uneconomical mines on account of small size and exhaustible reserves.

iii) Surplus manpower engaged in these three companies.

iv) Reduced demand of coking coal and competition from imported coking coal.

v) Adverse geo-mining conditions.

(c) There are eight subsidiary companies of CIL namely, Eastern Coalfields Limited (ECL), Bharat Coking Coal Limited (BCCL), Central Coalfields Limited (CCL), Northern Coalfields Limited (NCL), Western Coalfields Limited (WCL), South Eastern Coalfields Limited (SECL), Mahanadi Coalfields Limited (MCL) and Central Mine Planning & Design Institute Limited (CMPDIL). The debt burden on each of the subsidiary companies of CIL as on 31.3.99 is given below:-

 (Rs. in crores)
ECL	BCCL	CCL	NCL	WCL	SECL	MCL	CMP	CIL	Total	DIL
Loan from CIL	615.57	1406.76	1106.36	109.61	226.05	371.59	184.12	2.12	4022
Foreign Loan	389.00	409.54	178.17 56.97	79.55	87.02	393.32	1593.57
Term Loan	0.76	59.12	150.00 157.50	367.38
Bank overdraft	8.97	95.40	1.94	610.14	716.45
Loan from Finan-	125.11 65.83	0.72	200.00	575.00	966.66
cial Institution
& Corporation
Bonds	884.34	884.34
Loan from	1920.58 1920.58
Govt.of India
Interest accrued	26.93	26.93

Total	1014.30	1627.27	1642.49	288.25	433.58	808.10	271.61	2.12	4410.31	10498.03