Released on = June 20, 2006, 9:40 pm

Press Release Author = RNCOS

Industry = Industrial

Press Release Summary = CIL is the world's second largest coal supplier and the
largest corporate employer in India. This owes mainly to its improved functioning
and transparency in operations.

Press Release Body = Coal India Limited has many advantages. It is a large company
with an appropriate infrastructure. Currently its coal output is about 300 million
tones. In 2004-05 it acquired a turnover of about Rs.306.60 billion. And to add on
to everything it does not fear expulsion from the market by private investors even
if they have a large contribution in the domestic coal-mining sector.

CIL ranks second largest in world coal supply. At home it is the biggest corporate
employer having strength of 462,000 people. Financially too it is strong occupying a
position among the largest five companies in the country. In the fiscal 2005-06, CIL
earned a net profit of more than Rs.6,100, a 43% increase over fiscal 2004-05.

CIL's present level of performance is attributed to the improved functioning at the
mine level as also the transparency it has imbibed in its operations and tendering
process.

Other factors that contribute to the company's achievements are large reserve of
resources enabling large-scale production, greater sales security, expanded growth,
skilled and trained workforce, experienced and supportive management, healthy
relations between union and management, and cordial relations with customers.

RNCOS, in their market research publication of "Indian Coal Industry: Opportunities
for Growth (2006)" reveals that CIL's weaknesses lie in its foreseeable financial
crisis further added with its major consumers, State Electricity Boards (SEBs)
already undergoing financial difficulties.

Some other deficiencies include:
· Coal output with a high ash content.
· Major consumers located at a distance.
· Old mines still in possession.
· Too many working people.
· Limited ability in relocating manpower.
Surprisingly these are in contrary to the strengths that the company exudes in terms
of proven reserve, supportive trade unions, and cooperative clients.

The market research report provides an in-depth analysis of the present scenario and
future forecast of the Indian coal industry. It also gives an overview of the Indian
coal sector with focus on performance of its key players.

The report enumerates a global analysis of coal production and consumption, a
comparison between the world scenario and Indian coal sector. There is also
discussion of emerging trends and developments and about new coal projects.

About RNCOS:
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needs and aims to put an end to your information pursuit. Our expertise in gathering
global business information for industry research, corporate training, growth
consulting, and business consulting, brings reputed companies and firms to us for
business enhancement solutions. We can be your one-stop-shop for Industry research
information and niche market analysis.

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Contact Details = RNCOS
Shushmul Maheshwari
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