December 03, 2008

Proper accounting by CIL very important- Dr Rao

As, Coal India Limited and its subsidiaries have been steadily increasing coal production from 323 million tonnes in 2004-05 to 362 million tonnes during 2006-07 and a target of 383 million tonnes has been fixed for 2007-08, need for proper systems of accounting is required.

Dr Dasari Narayana Rao minister of state for coal has emphasized that with steady increase in production of coal, proper accounting of coal production and dispatches assumes importance. He said that “CIL has elaborate procedures for reporting of coal production, measurement of stocks and dispatches. Given the range of operations involved such measurement has both specific and volumetric components.’

Mr Rao informed that coal production is to be reported in tonnes on shift and daily basis. He said that “Methods of measurement are spelt out for different technologies of production. Reported production should be checked on monthly basis and reconciled. In case of underground mines stock is to be measured physically on monthly basis while in case of open cast mines stock is to be measured in situ on monthly basis.”

He informed that proper investigation by departmentally constituted committee is carried out to fix up responsibility for coal stock shortages. He aid “If shortage is more than 10,000 tonnes in a mine and 50,000 tonnes in a company, report of the departmental committee should be approved by concerned company board and sent to CIL with its recommendation and award of punishment for consideration of CIL Board. A +/- 5% variation between physical stock and book stock is considered as measurement tolerance due to instrumental error, error due to measurement of irregular volume and human error etc.”

Dr Rao urged members to suggest ways to make coal distribution, transportation and measurement, more transparent and effective.