The chairman and managing director of Coal India (CIL) has stepped down, according to media reports in India. S. Narsang Rao has handed in his resignation of the state-owned behemoth to accept a post in the government of the new state of Telangana.
The resignation comes only a day after the appointment of Piyush Goyal as minister of state for coal, power and renewable energy in Narendra Modi’s new government. Goyal has been tasked with reforming the coal and power industries to solve India’s growing power deficit. A key part of that process is likely to be reform of CIL – including a possible break-up.
CIL mines over 80% of India’s coal and is the only company allowed to sell coal on the open market. However, it has consistently failed to meet is annual production targets, leaving Indian power producers short of coal and reliant on imports.
It is unclear whether Rao will be required to stay in post until a successor is found – a process that could take up to six months. At the time of writing, his resignation had yet to be accepted by Goyal.
The new state of Telangana will formally come into existence on 2 June, following its split from Andhra Pradesh.
Written by Jonathan Rowland
Read the article online at: https://www.worldcoal.com/coal/30052014/s_narsang_rao_has_resigned_as_chairman_and_managing_director_of_coal_india_coal911/