Coal India has announced that it will reduce its manpower by 5 per cent each year in the next 5-10 years to improve productivity and reduce operational costs. The company's vision is to "emerge as a global player in the primary energy sector committed to provide energy security to the country," CIL said in an earnings call a day after declaring its March quarter results. The world's largest mining company has 2,72,445 employees as of FY20.
Coal India also said that it will close unviable mines, as part of its cost-cutting efforts. "Action is being taken to close the unviable mines in CIL in a phased manner. Production from 11 such Underground mines has already been suspended," CIL emphasized. As many as 158 underground mines employ 43 per cent of the workforce and contribute a mere 5 per cent of the company's total production.
In a related development, Coal India also approved the creation of a special purpose vehicle called CIL Navikarniya Urja to venture into new new and renewable energy (non-conventional) areas such as solar, wind, small hydro, biomass, geo-thermal and tidal energy.
Meanwhile, on Monday, Coal India reported a 0.8 per cent decline in consolidated net profit, at Rs 4,588.96 crore, in the quarter ended March 31, 2021. The company had posted a profit of Rs 4,655.76 crore in the year-ago period.
And Coal India also announced a final dividend of Rs 3.5 per share, taking its total payout in FY2021 to Rs 16 per share.