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Chairman's Speech (Coal India) Year : Mar '15
Dear Shareholders,
 I am delighted to welcome you to the 41st Annual General Meeting of
 Coal India Limited. The Directors'' Report and the Audited Accounts
 for the year ended 31st March, 2015 together with the report of
 Statutory Auditors and report and review of Comptroller & Auditor
 General of India are already with you.
 1. Importance of coal and Coal India Limited
 The world over coal''s contribution towards primary commercial energy
 is around 30% and coal helps generate 40% of world''s electricity. In
 the Indian context, the importance of coal scales-up higher than the
 global average. In India, coal is the most dominant energy fuel meeting
 around 50% of country''s primary commercial energy. Around 72% of the
 entire power generated in the country is coal based. The pivotal role
 of coal is expected to continue in the foreseeable future primarily
 because of abundance of coal reserves, easy availability and
 affordability. As of 1st April 2015, the estimated geological resource
 of Indian coal stood at 306.59 Billion Tonnes.
 And, Coal India Limited is at the vanguard of country''s coal
 production, producing 82% of the country''s entire coal output. Coal
 India virtually empowers the power sector in the country with nearly
 78% of Coal India''s entire supplies catering to power utilities of
 the country. 97 out of 100 Thermal Power Stations in the country
 receive coal from Coal India.
 2. Accomplishments 2014-15
 During 2014-15 the coal production was 494.24 Million Tonnes. You will
 be happy to know that stepping into a higher growth trajectory the
 increase in absolute terms, FY ending 2015, was nearly 32 Million
 Tonnes, the highest ever incremental increase in a single financial
 year since the inception of the company. The 32 Million Tonne increase
 is more than the incremental growth achieved during the previous four
 financial years combined.
 Raw coal off-take during FY ending 2015 was 489.38 MTs, an increase of
 17.80 MTs on a year-on-year comparison.
 Despatch of coal and coal products, to power utilities of the country
 during 2014-15, registered a healthy growth of 8.9%. Coal supplies from
 Coal India as a whole surged ahead to 385.40 MTs, up by 31.57 MTs, from
 that of 353.83 MTs achieved in 2013-14.
 Other positives:
 (i) Eastern Coalfields Limited came out of BIFR.
 (ii) Bharat Coking Coal Limited was conferred the Miniratna status.
 (iii) Three new opencast mines Amrapali, and Konar in Central
 Coalfields Limited, Makardhokra 1, Bhanegaon and Panganga in Western
 Coalfields Limited, and Jampali in South Eastern Coalfields Limited
 went operational.
 Financial Performance:
 Coal India is one of the highest contributors to the government
 ex-chequer in the country both - federal and state governments.  Coal
 India paid a corporate tax of Rs. 9,572.05 Crores to Government of India
 in 2014-15, one of the highest cash payouts among the Indian corporate
 Coal India and its subsidiaries have also paid/adjusted Rs. 21,482.21
 crores towards Royalty, Cess, Sales Tax and other levies.
 During 2014-15, Coal India as a whole earned pre-tax profit of Rs.
 21,583.92 crores and a Profit After Tax of Rs. 13,726.70 crores.
 Coal India paid an interim dividend of Rs. 20.70 per share. The total
 outgo from the company was Rs. 13,074.88 crores of which Government of
 India which held 79.65% (at that time) of company''s shares received Rs.
 10,414.14 crores. In addition, Government of India also got dividend
 distribution tax of Rs. 2,526.30 crores from CIL and its subsidiaries,
 thus making the total inflow to GoI Rs. 12,940.44 crores.
 3. Strategies for Growth
 Coal India is faced with challenging targets in the ensuing years.
 Going forward now on to meet the production targets, Coal India needs
 to step up into double digit growth from that of around 7% achieved
 during 2014-15. It is with a feeling of satisfaction I share with you
 that during the first quarter of 2015-16, Coal India''s production
 growth was consistently in double digits in each of the three months,
 ending the Q1 on 12% growth.
 To sustain the growth momentum in its production and target
 achievements in the future, Coal India has formulated multi-pronged
 (i) Critical Railway Links - Collaboration with State Governments &
 There are coalfields under Coal India which have large deposits of coal
 and huge production potential but are not properly connected through
 rail links for evacuation of the coal. Three such coalfields that are
 expected to play critical role in coal production once the rail links
 are commissioned are in Central Coalfields Limited (Jharkhand), Mahandi
 Coalfields Limited (Odisha) and South Eastern Coalfields Limited
 In a synergic effort with respective State governments and railways,
 Coal India is actively pursuing the progress of these railway links.
 Special Purpose Vehicle (SPVs) have been formed in a tripartite
 partnership between Ministry of Railways, Ministry of Coal and the
 respective State governments with a win-win strategy for all
 stakeholders. Coal India Limited through its subsidiaries, Railways
 nominated agency and the concerned State Govt. agency will form SPV and
 construct arterial lines as a Railways concessionaire.
 (ii) Technology Development
 (A) Geology
 We propose to have
 a) more use of Hydrostatic Drilling for high rate - presently 8 in
 operation, 5 more to be added by 2016-17.
 b) more use of geophysical loggers - 5 in operation and 5 more by
 c) optimisation of number of coring boreholes based on the complexity
 of geology of the block.
 d) more use of 2D/3D Seismic Survey Technology.
 (B) Opencast Mines
 We propose to promote more of
 a) High capacity equipment.
 b) Operator independent Truck Dispatch Systems.
 c) Vehicle Tracking System using GPS/GPRS.
 d) CHP and SILOS for faster loading.
 e) Monitoring using Laser Scanners
 (C) Underground Mines We propose to pursue
 a) Continuous Miner Technology on large-scale.
 b) Long-wall Technology at selected places.
 c) Man Riding system in major mines.
 d) Use of Tele-monitoring techniques.
 (iii) Role of HR
 Human Resource has to play an active role if Coal India has to achieve
 the challenging targets in future. HR Division had identified various
 areas that would supplement Coal India''s efforts in this regard and is
 charting out a plan of recruiting multi-disciplinary professionals,
 skill upgradation of existing employees, identifying areas of
 improvement and such.
 Coal India had signed a Memorandum of Understanding with National Skill
 Development Corporation (NSDC) to promote special education and
 employment enhancing vocational skills.
 4. Other Improvement Areas
 (i) Coal Washing - A step towards Quality improvement
 With limited scope of product differentiation, competitiveness of
 generic products like coal primarily centers around quality and price.
 To make the product better qualitatively, Coal India has decided to
 bring in consistency in quality by setting up coal washeries which will
 result in reducing the ash content and improved consumer satisfaction.
 This would also be in sync with environment friendly measures. NEERI
 has been engaged to guide us in the process.
 At present, Coal India has a total coal washing capacity of 36.8
 million tonnes per year (MTY) through 15 existing washeries, of which
 12 are coking and 3 non coking with 23.30 MTY and 13.50 MTY capacities
 In addition, Coal India plans to set up further 15 washeries having
 state-of-the-art and innovative technology in coal beneficiation with
 an aggregate throughput capacity of 112.6 MTY. Out of these, 6 are
 coking coal washeries with a cumulative capacity of 18.6 MTY, and the
 rest 9 are non-coking coal washeries.
 (ii) System Improvements
 E-procurement will be universalized and more effectively implemented.
 ERP as a route towards organisational synergy will be fast tracked.
 Coal India has already adopted a host of ICT initiatives to make
 internal processes IT driven and to enhance all round system efficiency
 and transparency to improve employee, customer and vendors''
 We have put in place electronic surveillance initiatives to keep watch
 on coal stock and track the coal loaded vehicles.  Major initiatives
 (a) GPS/GPRS based VTS (Vehicle Tracking System) on coal transport
 (b) OITDS (Operator Independent Truck Dispatch System).
 (c) Installation of CCTV at vulnerable points like entry/exit points,
 coal stock yards, railway sidings, material stores, explosive magazines
 and important offices.
 (d) RFID based boom barriers.
 (e) Wide Area Networking for connecting all the Mines, Projects,
 Sidings, Weigh Bridges and HQ through dedicated network for data
 transfer and Coalnet implementation.
 (f) Installation of in-motion Weigh Bridges with RFID tags.
 (g) Weigh Bridge connectivity for weight tracking.
 (h) Geo-fencing of mine areas.
 Coal India is also adopting improved measurement system of coal and OB
 through 3D Terrestrial Laser Scanner System for greater accuracy. Other
 initiatives include project monitoring system, land management system,
 integrated business solutions, document digitization management and
 archival system etc.
 For greater employee satisfaction, initiatives like Grievance
 Management System, EIS (Executive Information System), Online filing of
 APR, Online PRIDE/PAR (Performance Appraisal Report), Online Vigilance
 Clearance System, Online CPRMSE (Coal India post- retirement medical
 scheme for executives) have been undertaken.
 5. Green Initiatives
 Coal India is conscious of its commitment towards environment and
 ecosystem. The company strives to give back to the nature to the extent
 possible what has been pried away from her by taking appropriate
 measures to mitigate the impact of mining and associated activities in
 accordance with EIA / EMP of each project.
 Coal India has created a green wealth of about 82 million plants
 including 15.74 lakhs saplings planted during 2014-15. Satellite
 surveillance has been adopted for monitoring reclamation activities of
 50 major OCPs, producing 5.0MM3 (Coal   OB) or more every year and
 other OCPs once in three years. It is evident from satellite
 surveillance that reclaimed land area has increased by 6.85 sq.Km
 during 2014 in 50 major OCPs.
 Study of National Remote Sensing Centre (NRSC), ISRO, Hyderabad in 2013
 reveals that the fire area in Jharia Coalfields had reduced from 8.9 sq
 Km (as assessed in Master Plan) to 2.0 sq Km after undertaking various
 methods while implementing the Master Plan.
 6. Safety - Always a priority
 Safety of miners and mines remains a top priority concern for Coal
 India. In pursuit of higher production no compromise would be made on
 safety facet. Coal India has a well-defined safety policy to ensure
 safety in all mines and establishments. The fatality rate per million
 tonne of coal produced has reduced by 30.77% and serious injury rate
 per million tonne has reduced by 11.63% in 2014 compared to its
 previous year. The endeavour is to elevate safety standards radically
 further, since in this regard there could be only ''Zero Accident''
 as the goal.
 7. Corporate Social Responsibility
 Corporate Social Responsibility apart from improving the quality of
 lives of people is also to take them along towards the goal of the
 company by partnering with them. While pursuing the enhancement of Coal
 production, CSR is being undertaken to have inclusive growth of
 villagers and affected community.
 (i) Coal India and its subsidiaries have spent Rs. 298.10 Crores in FY
 ending 2015 on CSR initiatives.
 (ii) Coal India has taken an initiative towards Swachh Vidyalay
 Abhiyaan by way of construction of 48,735 toilets in 30,340 schools.
 (iii) Coal India in a tie-up with Tata Medical Centre (TMC) has
 sanctioned Rs. 41.11 Crores for construction of ''Premashraya'' a ten
 storied building which provides housing facilities for economically
 weak outstation patients visiting TMC for treatment. The facility is
 also extended to the relatives of the patients who accompany them.
 Apart from patient stay units, the building also has palliative care
 cubicles, child care centres, counselling rooms and physiotherapy
 (iv) Coal India has signed an MoU with The Energy and Resources
 Institute (TERI), New Delhi, at a project cost of Rs. 32.92 Crores, for
 execution of development works in 40 villages of backward district of
 Purulia, West Bengal. The activities as identified by Planning
 Commission include clean energy cooking solutions, solar street
 lighting, agriculture and greening, training, income generation
 programmes, sanitation improvements, knowledge-cum-recreational centers
 (v) Coal India is setting up an Indian Institute of Information
 Technology (IIIT) at Kalyani in West Bengal, as one of the industrial
 partners on PPP model, with a contribution of Rs. 6.40 Crores towards the
 (vi) Coal India has also funded -
 a) Alipurduar Municipality for setting up of a Water Treatment Plant
 for the under privileged people of Alipurduar Municipality, West Bengal
 at a cost of Rs. 78.40 Lakhs.
 b) Ramkrishna Mission Sevashram, Muzzafarpur, Bihar for construction of
 100 beded charitable Eye, E&T, Dental/ Diagnostic Centres at a cost of
 Rs. 4.93 Crores.
 c) National Institute of Larger Awareness (NILA), Assam for promotional
 and preventive health care through awareness programmers in rural
 population where literacy is low at a cost of Rs. 31.51 Lakhs.
 d) National Charitable Society, Pratapgarh, U.P. for installation of 50
 Solar Powered Street Light and 50 Hand Pumps at a cost of Rs. 30.45
 Lakhs. and
 e) Sunebeda Area Development Agency (SADA), Odisha for providing
 Bicycles to 12000 Households at a cost of Rs. 3.60 Crores.
 8. Corporate governance
 Coal India complied with the conditions of Corporate Governance, as
 stipulated in the Guidelines on Corporate Governance for Central Public
 Sector Enterprises (CPSEs) issued by the Department of Public
 Enterprises, Government of India and Clause 49 of the Listing Agreement
 with the Stock Exchanges except for appointment of Independent
 Directors. As required under the said guidelines and provisions, a
 separate section on Corporate Governance has been added to Directors''
 Report and a Certificate regarding compliance of conditions of
 Corporate Governance has been obtained from a Practising Company
 Coal India has conducted Secretarial Audit for 2014-15, as required
 under Companies Act 2013 and the Secretarial Audit Report is enclosed
 as a part of Directors report.
 9. Vision
 Coal India''s vision is to ensure that there is no shortage of coal in
 the country and make the country self reliant in coal. Not an easy
 task, but having been entrusted with a noble mission, Coal India aims
 to put in its best efforts in this commitment and is laying a strong
 foundation for that. We endeavour to traverse the path with that firm
 10. Acknowledgement
 On behalf of your Company''s Board of Directors, I wish to convey my
 deep gratitude to you, our valued shareholders, for your continued
 support and trust. This motivates us to excel in all our pursuits and
 constantly create value for you as well as for the nation.
 I appreciate the unstinted support and valuable guidance received from
 the Ministry of Coal, Government of India. I also express my sincere
 thanks to other Central Government Ministries and Departments, State
 Governments, all employees, Trade Unions, consumers and suppliers for
 their relentless co-operation.
 Sutirtha Bhattacharya
 Dated: 21st July, 2015
Source : Dion Global Solutions Limited
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