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.
(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
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
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
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.
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
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.
Dated: 21st July, 2015