Coal India Directors Report, Coal India Reports by Directors

Directors Report	Year End : Mar '12 � Mar 11

To The Members of Coal India Limited. The behalf of the Board of Directors, I have great pleasure in presenting to you, the Thirty-Eighth Annual Report of Coal India Limited (CIL) and Audited Accounts for the year ended 31 st March, 2012 together with the reports of Statutory Auditors and the Comptroller and Auditor General of India thereon. Coal India Limited (CIL) is a Maharatna Public Sector Undertaking under the Ministry of Coal, Government of India with headquarters at Kolkata, West Bengal. CIL is the single largest coal producing company in the world and the largest corporate employer with a manpower of 3,71,546 (as on 1st April, 2012). CIL operates through 81 mining areas spread over 8 provincial states of India. Coal India has 467 mines of which 273 are underground, 164 opencast and 30 mixed mines. CIL further operates 17 coal washeries, (12 coking coal and 5 non-coking coal) and also manages 200 other establishments like workshops, hospitals etc. CIL has 27 training Institutes. Indian Institute of Coal Management (IICM) as a Centre of Excellence operates under CIL and imparts multi disciplinary Management Development Programmes to executives. Coal Indias major consumers are Power and Steel sectors. Others include Cement, Fertilizer, Brick Kilns, and a host of other industries. During the year the company continued to have eight fully owned Indian subsidiary companies viz.: Eastern Coalfields Limited (ECL), Bharat Coking Coal Limited (BCCL), Central Coalfields Limited (CCL), Western Coalfields Limited (WCL), South Eastern Coalfields Limited (SECL), Northern Coalfields Limited (NCL), Mahanadi Coalfields Limited (MCL) and Central Mine Planning & Design Institute Limited (CMPDIL). In addition, CIL has a foreign subsidiary in Mozambique namely Coal India Africana Limitada (CIAL). The mines in Assam i.e. North Eastern Coalfields continue to be managed directly by CIL. Similarly, Dankuni Coal Complex also continues to be on lease with South Eastern Coalfields Limited during the year under review. MCL has two subsidiaries viz. MNH Shakti Ltd. and MJSJ Coal Ltd. with 700/c and 60 % equity holding respectively. 1. NOTABLE ACHIEVEMENTS 1.1 Maharatna Status Coal India Limited was granted the Maharatna status on 11th April, 2011 by the Government of India thus becoming only the 5th PSU in the country, of a total of 215 Central Public Sector Enterprises (CPSEs), to have been conferred with this status. Government of India has introduced the Maharatna scheme in February 2010 for Central Public Sector Enterprises, in order to empower the mega CPSEs to Expand their operations and emerge as global giants. The objective of Maharatna is to delegate enhanced powers to the Boards of the identified large Navratna CPSEs, fulfilling the specified criteria, to facilitate expansion of their operations both in domestic as well as global markets. 1.2 Coal India joins Sensex Coal India made it to the 30-stock Sensex, on 8th August 2011, globally considered to be the barometer of the Indian economy, in a short span of nine months since its listing on 4th November 2010. No other company has made it to the index in such a short time. And then, Coal Indias raise to the top came in just seven trading sessions since its entry to SENSEX. This is considered to be a remarkable accomplishment. 1.3 Most Valued Company in the country On 17th August 2011, Coal India emerged as the Most Valued Company in the country in terms of Market Capitalization - the pinnacle of success every business entity dreams of and aspires for. The companys value stood at a whopping Rs 2,51,296 Crores. What made the achievement all the more significant was that a public sector company could attain such lofty heights. 1.4 CMPDI in a gas recovery project Central Mine Planning and Design Institute (CMPDI) the Ranchi based mine consultancy subsidiary of Coal India Limited has been identified for participation in a Green House Gas recovery from coal mines and un-mineable coal beds and conversion to energy (GHG2E) - an EU funded Research Project from India along with Indian Institute of Technology, Kharagpur. The basic objective of the project is to contribute to global greenhouse gas reduction by controlling methane emission from coal mines and maximizing utilization of produced methane. Moonidih and Sudamdih mines of BCCL have been considered for taking up this research project. The total time schedule for the project is 42 months. Officials from CMPDI participated in the kick-off meeting held in Slovakia from 6th - 9th Oct/11. A team comprising of Prof. Sevket Durucan of Imperial College of Engineering, London and Prof. K Pathak of NT, Kharagpur and other representatives of both the institutions visited CMPDI on 16th Nov 2011 and discussed in details regarding the implementation of the project. The team along with CMPDI officials also visited Moonidih mine and BCCL for detailed discussions. CMPDI has received an advance payment of � 47,867.35 for the Project. 1.5 Finalization of National Coal Wage Agreement IX Coal India Limited (CIL) on 31st January 2012, finalized the wage agreement for its 3.63 Lakh strong non-executive work force by giving a 25% increase on gross wages as of 30 June 2011 .The wage hike that would be effective retrospectively from 1 July 201l is for a five-year period. 1.6 Pays Highest Interim Dividend to the shareholders On 23rd March2012, CIL Directors presented a cheque of Rs 5,400.49 Crores towards the Interim Dividend for the fiscal 2011-12 to Shri Sriprakash Jaiswal, Honble Union Minister of Coal, Government of India, in New Delhi in presence of Shri Alok Perti, the then Secretary, Ministry of Coal and other senior officials of MoC. The amount of Rs 5,400.49 Crores, the highest ever, Interim Dividend paid to Government of India so far, constitutes 900/c of the total interim dividend of Rs 6,000.55 Crores for the fiscal 2011 -12.The rest 1 Wo (Rs600 Crores) was distributed amongst the shareholders of the company. This is at the rate of Rs 9.50 per share against Rs 3.50 paid in the previous fiscal registering an increase of 171.40/c. 1.7 Awards & Accolades for Coal India Limited in 2011-12 BagsCompany of the Year Award Coal India Limited was conferred the coveted Company of the Year Award by Indian Chamber of Commerce and Department of Public Enterprises (DPE) on 19th September 2011 at 2nd Summit on India Public Sector Agenda @2020 at New Delhi. MoU Excellence Award Coal India Limited received the MoU Excellence Award for Outstanding rating for the year 2009-10 in New Delhi, on 31st January 2012 in a formal awards function MoU Excellence Awards/SCOPE Excellence Awards for outstanding contribution to the Public Sector Management organized by Department of Public Enterprises (DPE), Ministry of Heavy Industries & Public Enterprises. India Pride Award 2011 Coal India Limited was conferred with India Pride Award 2011 for the second consecutive year. CIL received the Gold Trophy in Energy & Power category. The award presented by Shri Montek Singh Ahluwalia, Deputy Chairman, Planning Commission of India, was received by Shri N.C. Jha, the then Chairman, CIL in a formal award ceremony in New Delhi on 21st October 2011. India Pride Awards have been initiated by a leading Hindi language media house and DNA - the English language news daily, aimed to recognize the outstanding contribution made by PSUs and individuals in different areas towards promoting efficiency and to encourage and motivate the individuals to achieve higher goals. The evaluation for the awards was done by ICRA, based on various business results. 2. FINANCIAL PERFORMANCE 2.1 Financial Results CIL is one of the largest profit making and tax & dividend paying enterprises. CIL and its subsidiaries has achieved an aggregate pre-tax profit of Rs 21,272.66 crores in the year 2011-12 against a pre-tax profit of Rs 16,463.24 crores in the year 2010-11 registering a growth of 29.21 o/o over earlier year. (Figures in Rs crores) 2011-12 2010-11 Company Profit Profit ECL (+) 962.13 (+) 106.57 BCCL (+) 822.36 (+) 1093.69 CCL (+) 1970.24 (+) 1860.22 NCL (+) 4265.67 (+) 3956.36 WCL (+) 440.50 (+) 1067.98 SECL (+) 6002.87 (+) 3777.12 MCL (+) 5463.69 (+) 4039.30 CMPDIL (+) 30.79 (+) 23.69 CIL/NEC (+) 8599.95 (+) 4723.37 Sub-Total (+) 28558.20 (+) 20648.30 Less dividend from Subsidiaries (-) 7307.20 (-) 4237.42 Total (+) 21251.00 (+) 16410.88 Adjustment for deferred revenue income (+) 21.59 (+) 52.36 Adjustment for exchange rate variation on Current Account overseas subsidiaries (+) 0.07 - Overall Profit as per Consolidation of Accounts (+) 21272.66 (+) 16463.24 CIL has achieved post tax profit of Rs 14,788.20 crores in 2011-12 compared to Rs 10,867.35 crores in 2010-11 showing a growth of 36.080/c over last year. The pre-tax profit of CIL and its subsidiary companies during the year 2011-12 is Rs 21,272.66 crores after taking into account the impact of pay revision for workmen w.e.f. 01.07.2011. Financial impact of revision of wages of Wage Board employees are Rs 5,020.01 crores. The liability has been provided in the Accounts of 2011 -12. Out of the aforementioned financial impact of Rs 5,020.01 crores-Rs2,687.41 crores relates to increased employee benefit expenses for nine months and Rs 2,332.60 crores relates to increase in actuarial liability for increased employee benefits. Highlights of performance The highlights of performance of Coal India Limited including its Subsidiaries for the year 2011-12 compared to previous year are shown in the table below: 2011-12 2010-11 Production (in million tonnes 435.84 431.32 Off-take of Coal (in million tonnes) 433.08 424.50 Sales (Gross) (Rs Crores) 78410.38 60240.90 Gross Profits Crores) 21326.64 16536.94 Capital Employed (Rs Crores) 66627.24 54495.72 Net Worthy Crores) 40453.02 33314.20 Profit before Tax (Rs Crores) 21272.66 16463.24 Profit after Tax (Rs Crores) 14788.20 10867.35 Gross Profit / Capital Employed (in %) 32.01 30.35 Profit before Tax /Net Worth (in %) 52.59 49.42 Profit after Tax / Net Worth (in %) 36.56 32.62 Earning Per Share (Considering FaceValue of Rs 10 per share) 23.47 17.19 Dividend per Share (Considering Face Value of Rs 10 per share) 10.00 3.90 Coal Stock (Net) (in terms of No. of months Net Sales) 0.92 1.06 Sundry Debtors (Net) (in terms of No of Months Gross Sales) 0.86 0.67 Note : The non-recognition of interest etc. in Holding Companys Accounts, from one of its subsidiaries (as per Accounting Standard -9) has been ignored in the consolidation, the profit shown in Consolidated Accounts may be read with such deviations. 2.2 Dividend Income and Pay Outs Dividend income of CIL accounted for during the year under review, based on the recommendations from five profit making subsidiaries namely, CCL, NCL, WCL, SECL and MCL was Rs 7,307.20 crores as against dividend of Rs 4,237.42 crores in previous year, the subsidiary- wise break-up of which areas under :- (Rs in crores) Name of the Subsidiary Dividend Income of CIL CCL 748.10 (386.32) NCL 2067.27 (1295.06) WCL 323.25 (387.42) SECL 1992.02 (1099.60) MCL 2176.56 (1069.02) Total 7307.20 (4237.42) Figures in brackets are for previous year. Your Directors recommended dividend payment of Rs 6,316.36 crores @ Rs 10/- per share on 6316364400 Equity Shares of Rs 10/- each fully paid value at Rs 6,316.36 crores. Out of total dividend, Govt of India gets Rs 5,684.72 crores and other shareholders get Rs 631.64 crores. (Earlier year - Govt of India received Rs 2,217.04 crores and other shareholders received Rs 246.34 crores). 3. COAL MARKETING 3.1 (a) Off-take of Raw Coal Offtake of raw coal continued to maintain its upward trend and reached 433.08 million tonnes, surpassing previous highest figure of 424.50 million tonnes achieved during the last year, i.e., an increase of 2 % over last year. The Off-take achieved was 95.8o/0 of the Annual Action Plan Target. Off-take suffered heavily in most of the coal fields, due to excessive rainfall in August-September2011. Though there was an improvement from the month of November, inadequate wagon availability till December11 had an adverse effect on the projected growth in off-take. Desired level of off-take was also affected due to less transportation to sidings arising out of law & order problem in CCL and MCL fields. However, CIL has registered excellent performance during the last quarter, which helped the company achieve the overall satisfactory performance. Company-wise coal off-take: Company-wise target vis-a-vis actual off-take for 2011-12 and 2010-11 are shown below: - (Figs, in million tonnes) 2011-12 2010-11 Growth over last year Company Target Achieved % Achieved Achieved Abs. % ECL 34.00 30.83 90.7 29.74 1.09 3.7 BCCL 30.00 30.16 100.5 29.39 0.77 2.6 CCL 52.00 48.04 92.4 46.38 1.66 3.6 NCL 68.50 63.61 92.9 64.21 -0.60 -0.9 WCL 45.50 41.97 92.2 42.56 -0.59 -1.4 SECL 112.00 115.15 102.8 109.02 6.13 5.6 MCL 109.00 102.53 94.1 102.10 0.43 0.4 NEC 1.00 0.80 80.0 1.10 -0.30 -27.3 CIL 452.00 433.08 95.8 424.50 8.58 2.0 From above it may be seen that BCCL & SECL had not only outperformed their respective targets but also exceeded last years level. Barring NCL, WCL and NEC all other coal companies registered a positive growth in off-take. Off-take from ECL & NCL was affected mainly due to less dispatch through MGR. Less transportation due to Law & order problem affected dispatch from CCL. Off-take from WCL received a serious set-back due to MAHAJENCOs decision of non-lifting of coal through road-cum-rail mode by their Washery Operator. Less transportation due to law & order problem coupled with fewer placements of MGR rakes byTalcher STPS as well as less availability of railway wagons affected the overall off-take of MCL. (b) Sector-wise despatch of coal & coal products: Sector-wise break-up of despatch of coal & coal products for 2011-12 against target and last years actual is given below: (Figs, in million tonnes) Year 2011-12 2010-11 Growth over last year Sector Target Despatch % Satn. Actual Abs. % Power (Util) 327.54 312.07 95.3 304.15 7.92 2.6 Steel* 4.11 4.12 100.2 4.21 -0.09 -2.1 Cement** 7.46 6.69 89.7 6.79 -0.10 -1.5 Fertilizer 2.87 2.79 97.2 2.78 0.01 0.4 Export 0.02 0.00 0.0 0.00 0.00 0.0 Others 106.26 107.28 101.0 105.51 1.77 1.7 Despatch 448.26 432.95 96.6 423.44 9.51 2.2 * despatch of washed coal, direct feed & blendable coal to steel plants. ** despatch to cement plants excluding cement cpp. 3.2 Despatches of coal and coal products by various modes: Despatches of coal and coal products during 2011 -12 went up to 432.95 million tonnes from 423.44 million tonnes registering a growth of 2.2 %. Overall dispatch by Road and Rope/Belt (other modes) had been more than target though road dispatch at WCL suffered a serious set-back due to MAHAJENCOs decision of non-lifting of coal through road-cum-rail mode by their Washery Operator. MGR despatch was affected due to less placement of MGR rakes by Talcher STPS, CHP problem and unloading problem at NTPC- Kahalgaon TPS. MGR off-take of NCL could not materialize to its fullest potential due to mutual arrangement between Railways and NTPC for operating BOBR rakes on NTPC rail track thus reducing the availability of MGR track for movement of MGR rakes and also due to inadequate availability of locomotives for hauling MGR rakes. This apart, MGR despatch was also affected due to preference given by NTPC for unloading of imported coal rakes, frequent derailment of MGR rakes and poor performance of MGR system at AnparaTPS. Despatch of coal and coal products by various modes for the years 2011-12 and 2010-1 list given below: (Figs, in million tonnes) Year 2011-12 2010-11 Growth over last year Mode Target Despatch % Satn. Actual Abs. % Rail 241.44 229.07 94.9 215.81 13.26 6.1 Road 102.00 113.39 111.2 112.35 1.04 0.9 MGR 94.47 79.32 84.0 83.62 -4.30 -5.1 Other Modes 10.35 11.17 107.9 11.66 -0.49 -4.2 Overall 448.26 432.95 96.6 423.44 9.51 2.2 3.3 Wagon Loading Sustained efforts and regular coordination with railways at different levels saw wagon loading increase by another 345 boxes per day over last year .Overall materialization was 96.1% of the target. Company wise performance shows that ECL, BCCL & NCL not only exceeded last years level of loading but also surpassed their target. Wagon loading at NEC was also more than the target. Major deviation from AAP target has taken place in Karanpura Field of CCL, Korba Field of SECL and both lb and Talcher fields of MCL The loading potentials of CCL, MCL & SECL-Korba could not be utilized due to inadequate supply of empty wagons. In some of the coalfields like CCL-Karanpura and MCL-Talcher, desired level of rail despatch could not be achieved due to less transportation of coal to sidings arising out of law & order problem and obstruction/agitation by local people on various demands. Rail despatch at NCL could have been even better but for supply of BOBR rakes moving in close circuit within Singrauli region and non-availability of Box-N rakes. (Figs, in box/day) Company 2011-12 2010-11 Growth of last year Target Achieved % Achieved Achieved Abs. % ECL 781 874 112.0 802 72.4 9.0 BCCL 1113 1167 104.9 1107 60.0 5.4 CCL 1807 1498 82.9 1423 75.4 5.3 NCL 1000 1045 104.5 1013 31.5 3.1 WCL 876 824 94.1 820 4.4 0.5 SECL 1926 1877 97.5 1796 81.3 4.5 MCL 2770 2568 92.7 2540 28.4 1.1 NEC 30 42 141.2 50 -7.6 -15.3 CIL 10303 9897 96.1 9552 344.7 3.6 3.4 Consumer Satisfaction: i) In order to ensure enhanced customer satisfaction, special emphasis has been given to quality management. Steps were taken to monitor quality right at the coalface apart from bringing further improvements in crushing, handling, loading and transport system. ii) CIL has built up coal handling plants with capacity of about 296 MT per annum so as to maximize dispatches of crushed / sized coal to the consumers. In addition, the washeries at BCCL, CCL, WCL and NCL have adequate crushing /sizing facilities to the tune of about 39.4 million tones. iii) Measures like picking of shale / stone, selective mining by conventional mode as well as by surface miners, adopting proper blasting procedure / technique for reducing the possibility of admixture of coal with over- burden materials, improved fragmentation of coal etc. are being taken for improving coal quality. iv) Surface Miners have been deployed by CIL for selective mining at some of the mines to improve the quality of coal. Action is being taken for deployment of more surface miners in other mines where geo-mining condition permits. Already 31 Surface Miners have been deployed in MCL, CCL, ECL and SECL at opencast mines and are working satisfactorily. v) Joint sampling system is in vogue for major consuming sectors e.g. power (utilities as well as captive), steel, cement, sponge iron covering more than 95<>/o of total production of CIL. On overall basis, large consumers having annual quantity of 0.4 million tonne or more and having FSA have been covered for sampling. The achievement of grade conformity in respect of sampling and analysis has been to the tune of 94.3o/0 up to Dec11 in respect of supplies to power sector during 2011 -12. Consumers, covered under the agreed sampling arrangement are required to pay as per the analysed grade of coal. This system is working satisfactorily. vi) Electronic Weighbridges with the facility of electronic printout have been installed at rail loading points to ensure that coal despatches are made only after proper weighment. For this purpose, coal companies have installed 168 weighbridges in the Railway sidings and 478 weighbridges for weighment of trucks. Coal companies have also taken actions for installation of standby weighbridges to ensure lOQo/o weighment. During 2011-12, about 99% of coal despatches to power houses have been weighed as compared to about 98.30/c during the year 2010-11. Sized coal despatches to power houses during 2011 -12 had been 98.640/c compared to about 98.6o/0 during the year 2010-11. 3.5 Steps Taken Towards Liberal Marketing of Coal: Status of implementation of different provisions under NCDP is as under: i) At the end of Mar 12, against the quantity allocated by CEA of 306 million tonnes for power stations, drawing coal on 31.3.09, total quantity covered under FSA had been 301.45 million tonnes showing materialization of almost 98.5o/0. Regular follow up was made with concerned power utilities to ensure that entire quantity gets covered under FSA. Apart from the above, new power stations (post NCDP) who are to draw coal through LOA route followed by FSA/ MOU, quantity covered in such cases came to 22.64 million tonnes per annum. Further power stations having pre NCDP linkage is also drawing coal under MOU for a quantity of 21.06 million tonnes. ii) Out of 1206 valid linked units other than power and steel plants with eligible FSA quantity of 64.77 million tonnes, 1188 units have executed FSAs for 64.14 million tonnes. iii) For supply of coal to SME sector, 8 million tonnes was earmarked by CIL for allocation to agencies nominated by the State Govts/ UTs. During the current fiscal, 18 states / UTs sent their nomination of 27 state agencies for the year 2011 -12 of which 22 state agencies have signed FSA for 3.95 million tonnes and drawing coal accordingly. iv) After implementation of NCDP, 654 new consumers in power, sponge iron, Captive power and cement sector were served notices with a request to deposit commitment guarantee(CG), of which 551 units submitted CG. 551 units were issued LOA for completion of necessary milestones. 300 units completed milestones and executed FSA. v) Under Forward e-auction scheme during the year ended Marl 2, quantity allocated was 7.55 million tonnes as against 5.61 million tonnes allocated in last year. Number of bidders participated also went up to 464 from 264 in the last year. Quantity allocated under spot e-auction also maintained its rising trend. During the period under review, 49.72 million tonnes of coal was allocated under spot e-auction to the successful bidders as against 46.56 million tonnes of coal allocated last year .Premium earned through e-auction over notified price was 66.6%(5526.88 Cr.) as against 80.7o/o(4072.06 Cr.) of last year. vi) Coal India Ltd. has converted to GCV(Gross Calorific Value) based system of coal grading & pricing for non- coking coal as per Government notification with effect from 01.01.2012 from earlier UHV system, which is an internationally accepted norm for grading of coal. 3.6 Coal Beneficiation In order to supply improved quality and sized coal, CIL operates 17 coal washeries with a total capacity of 39.4 Mty. Out of these, 12 are coking coal washeries with a total capacity of 22.18 Mty and 5 are non coking coal washeries with a total capacity of 17.22 Mty. Considering the increasing demand for washed coal and drive for a cleaner environment, CIL has initiated action to establish 20 coal washeries with a total capacity of 111.1 Mty, out of which 6 are coking coal washeries with a total capacity of 19.1 Mty and 14 are non coking coal washeries with a total capacity of 92.00 Mty in 1st phase. These washeries are scheduled to be commissioned during XII Plan period . Further, CIL is also formulating plan to set up more coking and non coking coal washeries in the 2nd phase for supply of washed coal to various consumers. 3.7 Stock of Coal, Coke etc. Net adjusted value of the pithead stock of coal and other products at the close of the year 2011-12 after provision for stock deterioration etc. was Rs 4,801.14 crores, which was equivalent to 0.92 month value of net sales. The company-wise position of stocks held on 31.03.2012 and on 31.03.2011 are given below : (Figures in Rs crores) Net Value of Net Value of Stock in terms of no. of months Company stock as on stock as on Net Sales 31.03.2012 31.03.2011 As on 31.03.12 As on 31.03.11 ECL 476.65 430.58 0.69 0.88 BCCL 946.79 1025.94 1.56 2.00 CCL 1379.68 1292.31 2.26 2.57 NCL 391.10 199.81 0.59 0.31 WCL 488.14 360.37 0.87 0.72 SECL 572.54 624.63 0.46 0.70 MCL 530.59 473.47 0.67 0.76 NEC/CIL 15.65 32.71 0.45 0.96 Total 4801.14 4439.82 0.92 1.06 3.8 Coal Sales Dues Net Coal Sales dues outstanding as on 31.03.2012 after providing of Rs 1,771.14 crores (previous year Rs 1,484.52 crores) for bad and doubtful debts, was Rs 5,616.30 crores (previous year Rs 3,373.01 crores) which is equivalent to 0.86 months combined gross sales of CIL as a whole (previous year 0.67 months). Subsidiary-wise break-up of coal sale dues outstanding as on 31.03.2012 as against 31.03.2011 are shown below :- (Figures in Rs crores) Coal Sales dues Coal Sales dues Company As on 31.03.2012 As on 31.03.2011 Gross Net Gross Net ECL 2665.04 2459.37 1044.61 959.20 BCCL 1619.40 951.72 1131.47 618.14 CCL 1471.75 1078.66 1461.94 941.64 NCL 526.14 425.70 497.84 492.58 WCL 133.05 13.97 147.37 25.20 SECL 710.09 464.28 461.23 255.33 MCL 251.19 222.59 102.30 80.92 NEC/CIL 10.78 0.01 10.77 - Total 7387.44 5616.30 4857.53 3373.01 3.9 Payment of Royalty, Cess and Sales Tax, Stowing Excise Duty & Entry Tax During the year 2011 -12, CIL and its Subsidiaries paid/adjusted Rs 16,245.61 crores (previous year Rs 9,923.27 crores) towards Royalty, Cess, Sales Tax and other levies as detailed below :- (Figures in Rs crores) 2011-12 2010-11 Royalty 5315.14 4799.52 Cess & Others 2745.85 1339.07 Sales Tax/ VAT 2537.05 1757.81 Stowing Excise Duty 421.75 424.36 Central Excise Duty 3040.27 233.49 Clean Energy Cess 2082.40 1286.61 Entry Tax 103.15 82.41 Total 16245.61 9923.27 State-wise & Company-wise break-up of payment of Royalty, Sales Tax, SED, Cesses and other Levies during 2011 -12 are given below:- Company Particulars MP Chattisgarh WB Jharkhand Maharashtra ECL Royalty 9.44 180.00 Cess & Others 1342.51 Sales Tax/VAT 268.54 52.52 Stowing Excise Duty Central Excise Duty 319.21 94.19 Clean Energy Cess 79.89 87.05 Entry tax Total 2019.59 413.76 BCCL Royalty 0.04 567.88 Cess & Others 4.11 Sales Tax/VAT 8.90 224.84 Stowing Excise Duty Central Excise Duty 348.98 Clean Energy Cess 147.10 Entry tax Total 13.05 1288.80 CCL Royalty 682.66 Cess & Others Sales Tax/VAT 255.10 Stowing Excise Duty Central Excise Duty 398.12 Clean Energy Cess 189.10 Entry tax Total 1524.98 NCL Royalty 609.99 Cess & Others 1171.80 Sales Tax/VAT 164.38 Stowing Excise Duty Central Excise Duty 176.97 Clean Energy Cess 181.16 Entry tax 5.24 Total 2309.54 WCL Royalty 99.07 526.30 Cess & Others Sales Tax/VAT 59.23 257.00 Stowing Excise Duty Central Excise Duty 53.87 288.23 Clean Energy Cess 29.63 163.95 Entry tax 10.23 Total 252.03 1235.48 Company Particular UP Odisha Assam CCO/GOI 2011-12 ELC Royalty 189.44 Cess & Others 1342.51 Sales Tax/Vat 321.06 Stowing Excise 29.03 29.03 Duty Central Excise Duty 413.40 Clean Energy 166.94 Entry Task - Total 29.03 2462.38 BCCL Royalty 567.92 Cess & Others 4.11 Sales Tax/VAT 233.74 Stowing Excise Duty 29.60 29.60 Central Excise Duty 348.98 Clean Energy Cess 147.10 Entry Task - Total 29.60 1331.45 CCL Royalty 682.66 Cess & Others - Sales Tax/VAT 255.10 Stowing Excise Duty 47.70 47.70 Central Excise Duty 398.12 Clean Energy Cess 189.10 Entry Task - Total 47.70 1572.68 NCL Royalty 181.94 791.93 Cess & Others 16.75 1188.55 Sales Tax/VAT 155.88 320.26 Stowing Excise Duty 62.62 62.62 Central Excise Duty 149.40 326.37 Clean Energy Cess 132.95 314.11 Entry Tax 19.81 25.05 Total 656.73 62.62 3028.89 WCL Royalty 625.37 Cess & Others - Sales Tax/VAT 316.23 Stowing Excise Duty 42.18 42.18 Central Excise Duty 342.10 Clean Energy 193.58 Duty Entry tax 10.23 Total 42.18 1529.69 Company Particulars MP Chattisgarh WB Jharkhand Maharashtra SECL Royalty 303.73 1100.80 Cess & Others 103.23 104.50 Sales Tax/VAT 162.32 507.47 6.51 Stowing Excise Duty Central Excise Duty 166.13 542.35 1.33 Clean Energy Cess 69.81 503.26 Entry tax Total 805.22 2758.38 7.84 MCL Royalty Cess & Others Sales Tax/VAT Stowing Excise Duty Central Excise Duty Clean Energy Cess Entry tax Total CIL/ Royalty NEC/ Cess & Others Others Sales Tax/VAT Stowing Excise Duty Central Excise Duty Clean Energy Cess Entry Tax Total Overall Royalty 1012.79 1100.80 9.48 1430.54 526.30 Cess & Others 1275.03 104.50 1346.62 Sales Tax/VAT 385.93 507.47 283.95 532.46 257.00 Stowing Excise Duty - - - - - Central Excise Duty 396.97 542.35 320.54 841.29 288.23 Clean Energy Cess 280.60 503.26 79.89 423.25 163.95 Entry tax 15.47 - - - - Total 3366.79 2758.38 2040.48 3227.54 1235.48 Company Particular UP Odisha Assam CCO/GOI 2011-12 SECL Royalty 1404.53 Cess & Others 207.73 Sales Tax/VAT 676.30 Stowing Excise Duty 110.80 110.80 Central Excise Duty 709.81 Clean Energy Cess 573.07 Entry Tax - Total 110.80 3682.24 MCL Royalty 1027.77 1027.77 Cess & Others - Sales Tax/VAT 402.84 402.84 Stowing Excise Duty 99.06 99.06 Central Excise Duty 481.68 481.68 Clean Energy Cess 494.53 494.53 Entry Tax 67.87 67.87 Total 2474.69 99.06 2573.75 CIL/ Royalty 25.52 25.52 NEC/ Cess & Others 2.95 2.95 Others Sales Tax/VAT 11.52 11.52 Stowing Excise Duty 0.76 0.76 Central Excise Duty 19.81 19.81 Clean Energy Cess 3.97 3.97 Entry Tax - Total 63.77 0.76 64.53 Overall Royalty 181.94 1027.77 25.52 - 5315.14 Cess & Others 16.75 - 2.95 - 2745.85 Sales Tax/VAT 155.88 402.84 11.52 - 2537.05 Stowing Excise Duty - - - 421.75 421.75 Central Excise 149.40 481.68 19.81 - 3040.27 Duty Clean Entry 132.95 494.53 3.97 - 2082.40 Cess Entry tax 19.81 67.87 - - 103.15 Total 656.73 2474.69 63.77 421.75 16245.61 4. COAL PRODUCTION 4.1 Raw coal production Production of raw coal during 2011 -12 was 435.84 Million Tonnes as against 431.32 Million Tonnes produced in 2010-11 .The company- wise production is given below: (Figure in all Million Tonnes) Coking Non-Cocking Total Company 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 ECL 0.05 0.05 30.51 30.75 30.56 30.80 BCCL 27.25 25.29 2.96 3.72 30.21 29.01 CCL 15.55 15.45 32.45 32.07 48.00 47.52 NCL 0.00 0.00 66.40 66.25 66.40 66.25 WCL 0.32 0.40 42.79 43.25 43.11 43.65 SECL 0.19 0.16 113.65 112.55 113.84 112.71 MCL 0.00 0.00 103.12 100.28 103.12 100.28 NEC 0.00 0.00 0.60 1.10 0.60 1.10 CIL 43.36 41.35 392.48 389.97 435.84 431.32 4.2 Production from underground and opencast mines. Coal production from underground mines in 2011-12 was 38.39 Million Tonnes compared to 40.02 Million Tonnes produced in 2010- 11. Production from Open cast mines during 2011 -12 was 91.2 % of total raw coal production. Company-wise production is as under: (Figure in Million Tonnes) Underground Production Opencast Production Company 2011-12 2010-11 2011-12 2010-11 ECL 6.83 7.37 23.73 23.43 BCCL 3.48 3.70 26.73 25.31 CCL 1.09 1.27 46.91 46.25 NCL 0.00 0.00 66.40 66.25 WCL 8.39 8.71 34.72 34.94 SECL 16.41 16.80 97.43 95.91 MCL 2.19 2.17 100.93 98.11 NEC 0.004 0.002 0.60 1.10 CIL 38.39 40.02 397.45 391.30 Company Total Production 2011-12 2010-11 ECL 30.56 30.80 BCCL 30.21 29.01 CCL 48.00 47.52 NCL 66.40 66.25 WCL 43.11 43.65 SECL 113.84 112.71 MCL 103.12 100.28 NEC 0.60 1.10 CIL 435.84 431.32 4.3 Hard Coke and Washed Coal (Coking) Production Subsidiary-wise production of Hard coke and Washed coal (coking) is given below: (Figure in Lakh Tonnes) Hard Coke Washed Coal (Coking) Company 2011-12 2010-11 2011-12 2010-11 ECL - - - - BCCL 0.00 0.00 14.21 15.49 CCL - - 13.34 14.53 NCL - - - - WCL - - 1.37 1.91 SECL - - - - MCL - - - - NEC - - - - CIL 0.00 0.00 28.92 31.93 4.4 Overburden Removal Overburden Removal during 2011-12 was 735.14 Million Cubic Meter as against 732.13 Million Cubic Meter achieved in 2010-11 recording a growth of 0.4%. Company-wise details of overburden removal are shown below: (Figure in Million Cubic Meters) Company 2011-12 2010-11 ECL 60.31 56.25 BCCL 81.36 83.23 CCL 65.68 62.52 NCL 201.66 182.22 WCL 122.49 115.83 SECL 113.49 137.57 MCL 85.67 88.70 NEC 4.48 5.81 CIL 735.14 732.13 4.5 XI Plan Performance As per the XI Plan document All India coal demand growth, was envisaged at 9.52o/0 (i.e. 731 Mt) at the terminal year (2011 -12), against actual growth of 5.7% in X plan period. At the Mid-term Appraisal (MTA), envisaged growth was revised to 8.99o/0, i.e. 713.24 Mt. In Annual Plan 2011-12 this was further revised to 649.87 Mt. Actual consumption was 635.62 Mt (growth - 6.50/0) Domestic coal production was envisaged at 680 Mt (growth 9.56%), CILs projection estimated at 520.50 Mt (77% share), growing at 7.6% At the MTA, this was re-assessed at 630 Mt, CILs share being 486.5 Mt (growth 6.15%). In the Annual Plan 2011-12, CILs coal production target was revised to 447 Mt due to constraints faced by coal sector. Coal production of CIL grew at 3.84% (435.84 Mt). In the first three years of the XI Plan, CILs coal production showed an increasing trend with a growth rate of over 6% which was reduced to 0.5% in the last two years on account delays in Forestry & Environmental Clearances (FC & EC), delay in land acquisition and R & R issues and coal evacuation constraints. As per XI Plan Document, capital outlay of CIL was envisaged at Rs 17,390.00 Cr., which was revised to Rs 16,090.68 Cr. at MTA. The actual capital expenditure was Rs 13,617.56 Cr. 4.6 Future Outlook In the terminal year (2016-17), as per XII Plan Document, All India Coal demand growth rate has been envisaged at 7.09% (980.50 Mt). Estimated Coal demand for 2012-13 is 772.84 Mt. In the TY of XII plan (2016-17) the envisaged indigenous coal production is 795.00 Mt. Out of this, CILs projection is 615 Mt (envisaged growth rate 7.12%), 77% share of total production. Out of this 30.2% is to come from existing mines, 54.2% from projects under implementation and 15.6% from new projects to be taken up. On date 147 projects are under implementation. Further 126 new projects are identified to be taken up in XII Plan, of which 58 are spill-over projects of X & XI Plans. Coal production target of CIL in 2012-13 is 464.10 Mt (growth 6.48%). CIL has proposed a capital outlay of Rs 25,400 Cr in XII plan plus an ad hoc provision of Rs 35,000 Cr for acquisition of assets abroad and development of the acquired coal block in Mozambique. 5. POPULATION OF EQUIPMENT The population of major Opencast Equipment (Heavy Earth Moving Machinery) as on 1.4.2012 and on 1.4.2011 along with their performance in terms of availability & utilisation expressed as percentage of CMPDIL norm is tabulated below : No. of Equipment As on 1.4.2012 As on 1.4.2011 Dragline 40 40 Shovel 727 754 Dumper 3280 3217 Dozer 987 981 Drill 664 709 Indicated as % of CMPDIL Norm Availability Utilisation Company 2011-12 2010-11 2011-12 2010-11 Dragline 93 92 83 91 Shovel 89 90 75 78 Dumper 100 99 69 70 Dozer 93 93 58 59 Drill 99 98 71 74 6. CAPACITY UTILISATION System Capacity Utilisation The overall system capacity utilisation of CIL as a whole for the year 2011-12 has worked out to be 86.12%. It was 89.31% during 2010-11. Subsidiary-wise details in term of percentage vis-a-vis preceding year is as under: (in %) Company 2011-12 2010-11 ECL 129.90 94.88 BCCL 97.77 115.78 CCL 93.81 94.88 NCL 79.87 71.68 WCL 102.49 92.94 SECL 79.87 105.39 MCL 69.90 83.20 NEC 56.29 66.66 Total CIL 86.12 89.31 7. PRODUCTIVITY: OUTPUT PER MANSHIFT (OMS) Output per manshift (OMS) during 2011 -12 improved to 4.89 Tonnes per manshift from 4.73 Tonnes per manshift of previous year. Company-wise position is given in the following table: (Figure in Tonnes) Underground OMS Opencast OMS 2011-12 2010-11 2011-12 2010-11 ECL 0.44 0.45 8.64 8.14 BCCL 0.36 0.39 6.57 5.64 CCL 0.32 0.34 5.79 5.45 NCL 0.00 0.00 13.55 13.52 WCL 1.08 1.09 4.22 4.13 SECL 1.30 1.32 19.32 20.22 MCL 1.24 1.25 20.38 20.50 NEC 0.01 0.00 43.79 7.10 CIL 0.75 0.77 10.40 10.06 Overall OMS Company 2011-12 2010-11 ECL 1.68 1.60 BCCL 2.20 2.09 CCL 4.19 3.88 NCL 13.55 13.52 WCL 2.70 2.65 SECL 6.44 6.47 MCL 15.36 15.37 NEC 1.23 2.16 CIL 4.89 4.73 8. PROJECT FORMULATION: 8.1 Preparation of Reports (PR): As prioritized by subsidiary companies of Coal India Limited, preparation of Project Reports (PR) for new/expansion/re-organization mines was carried out during the year 2011 -2012 for building additional coal production capacity. Revision of Project Reports/Cost Estimates for projects was also taken up along with new PRs. Thrust was given for preparation of reports of identified projects of XI Plan and Mine Closure Plans of OC and UG mines. Other important jobs undertaken during the year: 1. Preparation & evaluation of RFQ (Request for Qualification) and RFP (Request for Proposal) documents and customization of bid document for coal washeries. 2. Operational plans for large OC mines. 3. Environment Management Plan (EMP). 4. Mining Plansof OCand UG mines. 5. Mine capacity assessment of underground & opencast mines of CIL 6. Various technical studies relating to operation of opencast & underground mines. 7. Performance analysis of HEMM operating in OC mines of CIL. 8. Preparation of Global Bids for deployment of Continuous Miner in underground mine of CIL. 9. Preparation of Model Bid Document & Conceptual Report for setting up of FBC based thermal power plants using washery rejects. 10. Detailed design and drawings, NIT, tender scrutiny, etc. Expert Consultancy Services: During the year 2011 -2012, expert consultancy services were also provided to subsidiary companies of Coal India Limited in the field of Environmental Management and Monitoring, Remote Sensing, Energy Audit (Diesel & Electrical), Benchmarking of Diesel & Electrical Consumption and Fixation of Diesel & Electrical Consumption Norms of Opencast and Underground mines, Physico-mechanical tests on Rock and Coal Samples, Subsidence Studies, Strata Control, Non-Destructive Testing (NDT), Controlled Blasting &Vibration Studies and Explosive Utilization, Ventilation/Gas Survey of UG mines, Mining Electronics, Petrography and Cleat Study on coal samples, Coal Core Processing & Analysis, Washability tests, OBR Survey, Man Riding System, Soil Erosion Study, Slope Stability Study, Effluent/Sewerage Treatment Plants, Assessment of Normative Cost of sand stowing for stowing mines, etc. In all, during the year under review, CMPDI had prepared 275 reports which include 19 Geological Reports, 28 Project Reports, 14 Operation Plans, 150 Other Reports (includes Master Plan for North Eastern Coalfields) and 64 Draft Environment Management Plans (including 31 applications as per Form-I for EMP clearance). 8.2 Project Implementation: (a) The following 4 coal projects, each costing Rs 20 crores & above, with an ultimate capacity of 2.0275 Mty and sanctioned capital of Rs 277.35 Crs. have been completed during the year 2011-12 : SL. Cos Name of the Projects Type Sanctioned Capacity Sanctioned Capacity (MTY) (Rs Crs.) 1 ECL JHANJRA 1ST SET CM UG 0.4375 93.60 2 ECL J K NAGAR (Foreclosure) UG 0.29 54.06 3 SECL NCPH SEAM V R-6 UG 0.42 30.71 4 SECL SHEETALDHARA & KURJA UG 0.88 98.98 TOTAL 2.0275 277.35 (b) 6 coal projects, each costing Rs 20 crores & above, with an ultimate capacity of 19.085 Mty and sanctioned capital of Rs 1,607.79 Crs. have started contributing production during the year 2011-12 : SL. Cos Name of the Projects Type Sanctioned Capacity Sanctioned Capacity (MTY) (Rs Crs.) 1 NCL KHADIA EXP (6.00 MTY INCR.) OC 6.00 1131.26 2 MCL ANANTA EXPN PH-III OC 3.00 207.28 3 MCL LINGARAJ OC EXPNPH-III OC 3.00 52.25 4 MCL SAMLESHWARI EXPN PH-IV OC 5.00 27.82 5 SECL KHAIRAHA UG 0.585 88.33 6 SECL AMLAI OC EXPNSE C-B OC 1.50 100.85 TOTAL 19.085 1607.79 Status of Ongoing Projects: Presently, there are 117 mining (excluding 12 projects of WCL approved subject to finalization of Coal Supply Agreement on cost plus basis.) and 13 non-mining projects, costing Rs 20 Crores and above, under implementation. Out of 117 mining projects, 61 projects are running on schedule & 56 are delayed. Out of 13 non-mining projects, 10 are on schedule and 3 are delayed. Projects Total Projects Projects on schedule Projects delayed Mining 117 61 56 Non Mining 13 10 3 Total 130 71 59 Reasons for delay: Mining Projects: SL. Reasons for Delay No. of Projects 1. ADVERSE GEOMINING CONDITION 2 2 DELAY IN LAND ACQUISITION+R&R 37 3 MISCELLANEOUS 17 Total 56 Non-mining Projects: Out of 3 delayed projects, all 3 are due to land and rehabilitation problems. 8.3 Projects Sanctioned (Costing Rs 20 Crores & Above): (a) No Advance Action proposal has been sanctioned during 2011-12. (b) CIL Board has sanctioned 5 mining projects during 2011-12. SL. Cos Name of the Projects Type Sanctioned Capacity Sanctioned Capacity (MTY) (RsCrs.) 1 ECL KOTTADIH CONTINUOUS MINER UG 0.60 127.17 2 BCCL KAPURIA UG 2.00 988.35 3 BCCL MOONIDIH XV SEAM UG 1.50 1230.27 4 CCL AMRAPALI OCP OC 12.00 858.11 5 NCL KHADIAEXP(INCR.6.00 MTY) OC 6.00 1131.26 (c) No Non-mining project has been approved by CIL Board during the year 2011-12. (d) The Subsidiary Company Boards have not sanctioned any new/expansion mining projects under their delegated powers during the year 2011-12. (e) The Subsidiary Company Boards sanctioned following 2 Non-Mining Projects under their delegated powers during the year 2011-12: SL. Cos Name of the Projects Type Sanctioned Capacity (Rs Crs.) 1 MCL Construction of 4-lane 41.5 Km long road in Talcher Coal field NON-MINING 251.35 2 MCL Construction of 4 lane dedicated coal corridor from Bankibahal NON-MINING 385.00 Colliery to Bhedabhal (on SH-10) in the district of Sundargarh 8.4 Revised Project Report / Revised Cost Estimates: (a) 3 RPR / RCEs were sanctioned by CIL during 2011 -12. SL. Cos Name of the Projects Type Sanctioned Capacity Sanctioned Capacity (MTY) (Rs Crs.) 1 ECL JHANJRA 2ND CM(RCE) UG 0.51 147.25 2 NCL BLOCK-B(RPR) OC 3.50 535.10 3 NCL KRISHANSHILA(RPR) OC 4.00 741.62 (b) Subsidiary Company Boards sanctioned 2 RPR / RCEs during 2011-12: SL. Cos Name of the Projects Type Sanctioned Capacity Sanctioned Capacity (MTY) (Rs Crs.) 1 MCL HBIAUG(RPR) UG 0.95 105.84 2 SECL JAMPALIOC(RCE) OC 2.00 142.58 9. CAPITAL EXPENDITURE Overall Capital Expenditure during 2011 -12 was Rs 3,727.17 crores as against Rs 2,539.72 crores in previous year, subsidiary-wise details of which are given below :- (Figures in Rs crores) 2011-12 2010-11 Company (BE) Actual (BE) Actual ECL 400.00 332.96 400.00 184.93 BCCL 400.00 410.72 350.00 320.94 CCL 350.00 320.99 350.00 200.76 NCL 800.00 702.11 800.00 310.53 WCL 350.00 275.72 350.00 239.74 SECL 600.00 937.65 600.00 581.87 MCL 700.00 497.95 650.00 608.10 CMPDIL 30.00 16.30 15.00 10.74 NEC/CIL/Others 590.00 232.77 285.00 82.11 Total 4220.00 3727.17 3800.00 2539.72 Capital Expenditure incurred during 2011 -12 is about 88.32% of BE. (66.83% in 2010-11). 10. CAPITAL STRUCTURE The authorized share capital of the company as on 31.03.2012 was Rs 8,904.18 crores, distributed between Equity and Non-cumulative redeemable preference shares as under: (i) 800,00,00,000 Equity Shares of Rs 10/-each Rs 8,000.00 crores (Previous Year 800,00,00,000 Equity Shares of Rs 10/- each) (ii) 90,41,800 Non-cumulative 10% Redeemable Rs 904.18 crores Preference Shares of Rs 1000/-each (Previous Year 90,41,800 Non-cumulative 10% Redeemable Preference Shares of Rs 1000/- each) Rs 8,904.18 crores The paid-up equity capital as on 31.03.2012 was Rs 6,316.36 crores, which includes Rs 256.93 crores worth of Equity Shares issued in favour of the Government of India (Gol) towards value of land acquired. Total investment by the Government of India in CIL and its subsidiaries are as follows: - (Figures in Rs crores) As on 31.03.2012 As on 31.03.2011 Investment by Gol 5684.72 5684.72 Other Investors 631.64 631.64 Total 6316.36 6316.36 11. BORROWINGS Aggregate borrowings of CIL has increased to Rs 1,527.38 Cr. in 2011-12 from Rs1,520.97 Cr. in 2010-11, as detailed below: (Figures in Rs crores) Particulars 2011-12 2010-11 Foreign Loans including deferred credits IBRD/JBIC 1362.72 1370.43 EDC Canada 155.63 141.56 Liebherr France SA., France 9.03 8.98 Total 1527.38 1520.97 Increase in outstanding is mainly because of increase in exchange rate even after repayment of principal and reduction in equivalent foreign currency of outstanding loan over previous year. The debt servicing has been duly met. 12. INTERNATIONAL CO-OPERATION Coal India is looking for foreign collaboration with a view to :- - Bring in proven technologies and advanced management skills for running UG and OC mines and coal preparation. - Exploration and exploitation of Coal Bed Methane, Coal Mine Methane, Abandoned Mine Methane. - Locating overseas countries interested in Joint Venture in the field of coal mining with special thrust on coal mining under built up areas. - Exploring financial assistance for import of equipment and other investment needs of the coal industry in India. Keeping the above objectives in view, discussions are being held from time to time with countries like United Kingdom, Russia, Germany, United States, Canada, France, Poland, Belarus, South Africa, Mozambique, China, Japan, Australia etc. to identify the areas of mutual cooperation for India in general and Coal India Ltd. in particular. The important areas identified include modern technologies for mass production in both UG and OC mining, dealing with fire and subsidence, mine safety, coal preparation, extraction of Coal Bed Methane, Coal Gasification, application of Geographical Information System, Satellite Surveillance, environmental control, overseas ventures in coal mining. Besides above, emphasis is being given to transfer of modern technologies and training. While CIL would endeavour to acquire suitable technology through international bidding on risk/gain sharing basis, bilateral cooperation may also be encouraged for locating availability of cost effective and latest technologies in the aforesaid areas, if the technology proves to be discernibly advantageous. CIL, therefore, has been following both these routes, in its subsidiary companies, albeit in varied measures. Following are the details of activities that took place with different countries during 2011-12 :- Indo-US Collaboration: The 8th of Indo-US CWG meeting was held on 24th March 2011 at New Delhi. Chairman CIL made a presentation covering overview of Indias coal industry and the role of Coal India in meeting energy requirement of the country and their efforts in acquiring coal properties abroad including US. It also emphasized the need for increased cooperation for technology in the areas of underground coal mining, coal beneficiation, Underground Coal Gasification, Coal Mine Methane, Ventilation Air Methane, Geo-Spatial Technology & Remote Sensing etc. Indo-German Collaboration: 18th meeting of the Indo-German Working Group on Coal was held from 26th to 30th September 2011 at Essen Rhein and Ruhr area, Germany. Indian delegations participated in the meeting held at the premises of the Company DMT GmbH & Company, KG. The Director, Ministry of Coal led the Indian delegation. The importance of Indian Market with special reference to mining equipment was brought into the discussion by the German side. General Manager (PMD), CIL made a presentation and introduced the coal mining sector of India to the German delegates. The possible areas of cooperation regarding reopening of 18 underground mines and also in respect to method of mining, mechanization in UG mines, coal washing, UG coal gasification and extraction of CBM / CMM etc. were also discussed at length. Indo-Belarus Collaboration: Honble Minister of Coal and Chairman, Coal India visited Belarus in the month of June 2011 and requested them to participate in the tenders for supply of HEMM as and when invited by CIL. Indo Australia Collaboration: 7th meeting of Indo Australia JWG on Energy and Minerals was held at Sydney on 17th and 18th May 2011. The Indian delegation was led by the Secretary (Mines) where Joint Secretary (Coal), Joint Secretary (Mines), Joint Secretary (Petroleum) etc. were also present. Besides Coal India Limited, many other PSUs and private companies were the part of Indian delegation. The Indian coal sector was headed by the Joint Secretary (Coal), MOC. Major deliberation / presentations on coal mining were made in JWG meeting on following issues: 1. Resource & Energy Overview - Australia and India Perspective. 2. Recent Resources and Energy Policy Development in India. 3. Growth in mining industry and possibilities of investment / involvement by government as well as private parties in exploration and winning of coal both in Australia and India. 4. New and Renewable Energy Issues in Australia and India. 5. Coal Issues in Australia and India. 6. Future Coal Work Programme 2011-2014 in India and Australia. Under the Joint Action plan in the coal sector, the issues like low emission coal technology, rehabilitation of abandoned coal mines, extraction of deep seated coal reserves and ground water management etc. are being taken up. A MOU is also planned to be signed between CSIRO and CMPDIL for coal research in the areas of joint strategic interest and development in the mining practices. It was also emphasized that several Indian companies have acquired or are in process of acquiring coal properties in Australia. Indo-Indonesia Co-operation. Second meeting of Joint Working Group Meeting on Coal between India and Indonesia was held on 24th November 2011 in New Delhi. Area of cooperation in the different fields like Development of coal blocks, Capacity building, clean coal technologies and investment opportunities was presented from CIL side. Indo-Czech Co-operation In response to Ministrys letter in November 2010 a brief note on Indo-Czech bilateral relations on coal sector has been forwarded to the Ministry of Coal on 24th November 2010. Honble Minister of Coal and Chairman, CIL along with other delegates visited Czechoslovakia in the month of June 2011 and both sides deliberated on different aspects of co-operation in future. 13. WORLD BANK FINANCED PROJECTS FOR 2011-12 The net utilization of loan disbursed by IBRD and JBIC is to the tune of USD 245.73 million and JPY 28440.82 million respectively, for procurement of equipment and technical assistance under Coal Sector Rehabilitation Project (CSRP). The disbursement for funding of procurement by IBRD and JBIC was completed in December 2003. As such, there was no drawals of loan since January 2004. With the repayment of loan of USD 121.03 million to IBRD and JPY 17,043.21 million to JBIC till 2011 -12, the total CSRP loan as on 31 st March2012 stands at USD 124.71 million (equivalent to Rs 642.62 crore) on account of IBRD and JPY 11,397.61 million (equivalent to Rs 720.10 crore) on account of JBIC. Thus, a total amount of Rs 1,362.72 crore is lying outstanding under CSRP Loan as on 31st March2012. COAL VIDESH DIVISION, CIL Initiatives undertaken for acquisition and development of coal assets abroad A. Activities of Coal India Africana Limitada, Mozambique The Prospecting Licences for coal having nos 3450L&3451L and covering a total leasehold area of 224 square kms were allocated by Govt, of Mozambique in 2009 to Coal India Africana Limitada (CIAL), a 100% subsidiary of CIL registered in Mozambique and the licences are valid till August 2014.The leasehold area falling under the licences is located in Moatize district of Tete province in North western part of Mozambique. Board of Directors of Coal India Ltd in its 271 st Meeting held on 28.06.2011 approved undertaking of a host of activities for operationalising CIAL. B. Signing of Memorandum of Understanding (MoU) with the Provincial Government of Limpopo, Republic of South Africa. CIL Board approved execution of a Memorandum of Understanding (MoU) between CIL and Provincial Government of Limpopo, Republic of South Africa for exploration and development of coal assets in Limpopo province, South Africa. The MoU was signed on 26th Sept. 2011 in New Delhi between Coal India Limited and two parastatals of Govt, of Limpopo namely Trade & Investment Limpopo(TIL) and Corridor Mining Resources (CMR). C. Adoption of new policy issued by GOI for acquiring raw material assets abroad: Government of India has issued guidelines to be followed by CPSEs for acquiring raw materials abroad. These policy guidelines envisage enhancing flexibilities of CPSEs in process related and other issues for acquisition of raw material assets abroad. CIL Board in its 279th Meeting held on 12th and 13th March 2012 adopted the policy which shall be followed for acquiring coal assets abroad. 14. MASTER PLAN FOR DEALING WITH FIRE, SUBSIDENCE & REHABILITATION. The Master Plan for dealing with fire, subsidence and rehabilitation in the lease hold of BCCL was approved on 12th Aug 2009 by Govt, of India. The initial two years consists of pre-implementation activities i.e. socio-economic survey, land acquisition, thermal survey, town planning etc. which are going on as per the provisions of Master Plan. - The implementation of Master Plan is being monitored by High Powered Central Committee at regular intervals. In this regard, last Meeting was held on 23.12.2011 under the Chairmanship of Secretary (Coal), Ministry of Coal. Master Plan dealing with Fire, Subsidence and Rehabilitation in the Leasehold of Eastern Coalfields Limited. Asansol Durgapur Development Authority, a state Govt. organization has been identified as implementing agency for Rehabilitation of Non-ECL houses. Contingency charges @ 30/0 & Supervision charges @ 5<>/o (total 8%) are to be paid to ADDA for implementation, which is included in the assessed capital requirements. The salient features of approved Master Plan are as follows. - No. of unstable sites proposed for Rehabilitation :- 139 nos +2 (later added as per recommendation of DGMS)=141 - No. of houses / families assessed for Rehabilitation :- 33196, nos. (18136 nos. in Phase-1 &15060 nos. in Phase-II) - Requirement of Land assessed for Rehabilitation :- 896.29 Ha. - No. of Locations identified for Diversion of Infrastructure (Railway lines, Roads & IOC pipe lines.) -: 7 - Total nos. of surface fire areas identified -: 7 - Capital Requirement estimated for Rehabilitation :- Rs 2610.10 Crores. (Rs 1424.84 Crs. & Rs 1185.26 Crs. respectively in Phases I & II.) - Capital Requirement estimated for Diversion projects :- Rs. 11.35Crores. (Equally divided in 5 years of Phase-I.) - Capital Requirement estimated for Fire schemes :- Rs. 40.28 Crores. (Equally divided in 5 years of Phase-I.) - Total Capital Requirement assessed as :- Rs 2661.73 Crores. (Rs.1476.47Crs.&Rs.1185.26Crs. respectively in Phases I & II, each of 5 years.) - Total cost of resettlement land assessed :- Rs 159.72 Crores - Total Amount required for Compensation assessed as :- Rs 196.94 Crores. - Total cost for development of Infrastructure at Resettlement sites :- Rs 320.20 Crores. - Total cost for arrangement of Power supply :- Rs 121.89 Crores. - Total Shifting allowance assessed as :- Rs. 348.56 Crores. - Total amount assessed for Demographic survey, Valuation etc :- Rs. 0.932 Crores. - Average cost of house considered in the Master plan (as per cost index 2008) :- Pucca House-Rs 5.95 lakhs & Kutcha house Rs 2.20 lakh - Average cost of land considered in Master plan :- Rs. 63.66 lakhs per Hectare. The R & R Package for Non-ECL people are :- (a) Cash compensation equivalent to assessed cost of homestead land & other super structure / infrastructure within the homestead land. In addition, a plot of 100 Sq.m free of cost at resettlement site having all amenities and infrastructural facilities will be provided. Extra plot if required may be provided on payment basis up to a maximum limit of owned land at unstable site. Or in lieu a constructed flat of 41.82 Sq.m. as super built up area having two rooms, a kitchen and a toilet in a triple storey building. In such case, no other cash compensation shall be paid. (b) A cash compensation in lieu of free plot along with the entitled compensation are to be offered if a house owner refuses to be resettled at the proposed township. (c) No cash compensation is to be paid to encroacher/settlers. Head of each such families will be provided a constructed flat of 30 sq.m. as super built up area. (d) Head of each families will be paid a minimum wage of 250 days per year for two years for income generation due to displacement/shifting. (e) A shifting allowance of Rs 10,000/- will be paid to each family to be resettled at new townships. (f) No employment shall be offered for any rehabilitation under the Master Plan. - The major implementation activities proposed to be completed in Phase I & II are:- i) Demographic Survey of affected people, Valuation of homestead land & houses including all structures/ infrastructures in that land, Preparation/ Distribution of photo-identity cards etc. ii) Identification & Acquisition of land for proposed townships. iii) Tendering & Awarding of work for land survey and township planning. iv) Surveying of land. v) Township planning. vi) Tendering & Award of work for townships. vii) Construction of approach road, Development of land & infrastructural facilities, Demarcation of plots, construction of flats. viii) Allotment of plots / flats for resettlement. ix) Shifting of people from unstable sites. x) Demolition of super structures / infrastructures at unstable sites. Action taken for implementation of Master Plan for Raniganj Coalfields as on 27.03.2012 1 i) ADDA has issued work order for Demographic Survey for all the 141 (139 as per Master Plan & 2 recently added as per decisions of HPCC) unstable sites out of which M/S XISS has completed 58 sites & work is going on in 6 sites. 8 sites are with no habitation as informed by ADDA. ii) ADDA received West Bengal Govt, cabinet approval and has already processed LA proposal to LA collector for 1053.09 Acres of land for different mouzas of Bonjemari Township for which ECL has paid Rs 159.72 crores to ADDA in June2011. 2. i) For study of stability of Andal-Sainthia Chord Railway line, CIMFR Dhanbad was requested to study the a) Geo-technical Survey of the area to find out the total void below the Rly line and b) Stability analysis of the workings and prediction of any surface subsidence based on detail geo-technical investigation and analytical method& for which CIMFR submitted their consultancy fees of Rs 14,18,661/, The proposal is under process in ECL. ii) For diversion of Andal- Sitarampur Railway line of Salanpur Area, a joint inspection of site with M/S RITES Ltd has been done for preparation of feasibility study and Detail Project Report of Salanpur Area has been forwarded which is under process at ECL HQ &CMPDIL R-1. iii) For Diversion of 2 nos. DB Roads, ADDA has submitted their formal consent for taking up the job. Accordingly, the proposal for diversion routes has been handed over to ADDA for examining the feasibility of the route proposed and to take up the job of diversion in an urgent basis. 15. ENVIRONMENTAL MANAGEMENT. 15.1 Environmental Impact Assessment (El A)/Environ mental Management Plan (EMP) ELA/EMPs for all the new and expansion projects as per EIA Notification SO 1533 dated 14th September, 2006 of MoEF are prepared for peak and normative capacities and environmental clearance is obtained. ELA/EMPs for mines requiring renewal of lease and falling under violations are also prepared for environmental clearance. ELA/EMPs on cluster basis for smaller and contiguous mines of ECL and BCCL are also being prepared for environmental clearance. During the year, CMPDI has prepared a total of 31 nos. of Form-I and formulated 33 nos. of Draft ELA/EMPs. 11 nos. of environmental clearances were received from MoEF for different projects of CIL, which include 2 nos. of washeries during the year 2011-12. 15.2 Pollution Control Measures and their Efficacy Measures are being taken to ensure that mining and coal beneficiation operations have minimum impact on the surrounding air quality, water quality, noise level and soil quality, hydro-geology, land use pattern and socio-economic profile of the nearby population. The mitigation measures include dust suppression in mines through fixed and mobile water sprinklers. Effluent treatment facilities for mine effluent, workshop effluent and CHP effluent like oil & grease traps, sedimentation ponds and facilities for storage of treated water and its reuse have been provided for in all the major projects. Domestic waste water treatment facilities have also been provided to deal with the domestic effluent. The level of pollutants is being monitored on routine basis to ascertain the efficacy of the pollution control measures being taken in the projects. Additional remedial measures are taken, if required, to keep the pollutant level within the limits prescribed by regulatory bodies. Technical and biological reclamation of the mined out areas and the external overburden dumps are being taken by planting native species of plants for restoring the ecology. The level of pollutants is being monitored regularly as per the statutory guidelines to ascertain the efficacy of the pollution control measures and for taking corrective actions as required. 15.3 ISO: 14001 System Actions have been initiated for implementation of ISO:14001 in CILmines.lntheyear2011-12,atotalof21 projects and 1 hospital have got certification. With this, a total of 79 units got the certification till date which includes opencast projects, workshops, hospitals and washery. In addition, Northern Coalfields Limited (NCL), as a company also got certification. 15.4 Monitoring of Mines through Remote Sensing CMPDI through Coal India Limited has introduced a Satellite Surveillance System for monitoring of backfilling & reclamation of land for all the opencast mines. Land reclamation monitoring of total 50 nos. of opencast projects having more than 5 million cum. production capacity (Coal+OB) and 37 opencast projects having less than 5 million cum. production capacity (Coal+OB) of CIL based on high resolution satellite data has been completed during the year 2011-12. Land use / vegetation cover mapping of 5 coalfields viz. Umrer, Pench-Kanhan, Rajmahal, Raniganj and Sohagpur based on satellite data has been completed for creating Geo-Environmental database of the coalfields for assessing the regional impact of mining on land use/vegetation cover at a regular interval of three years. 15.5 R&R Policy of CIL The revised Resettlement & Rehabilitation Policy, 2012 was finalized based on the deliberations of Inter-Ministerial Committee and CMDs meet held on 05/03/2012 at New Delhi. This has been approved by the CIL Board in its 279th meeting held on 12th and 13th March, 2012 and same has been released by the Honble Minister of Coal, Govt of India on 4th April, 2012 in a Press Conference at New Delhi. The revised R&R Policy of CIL, 2012 provides multiple options to the land losers and more flexibility to the Board of Subsidiary Companies to meet unique R&R problems. This will facilitate faster acquisition of land. 15.6 Mine Closure Plans In terms of the guidelines issued by Ministry of Coal (MoC), CMPDI prepared 324 nos. of mine closure plans for CIL mines during the year. 15.7 Research & Development The R&D projects in the emerging areas are continuously undertaken. One research project viz. Fly ash characterization for mine void reclamation has been completed. 16. COAL BED METHANE (CBM) / COAL MINE METHANE (CMM) 16.1 Coalbed Methane Recovery and Commercial Utilisation Project Under R&D efforts, Govt, of India (Gol)/United Nations Development Programme (UNDP)/Global Environment Facility (GEF) funded demonstration project on Coal bed Methane Recovery & Commercial Utilization has been successfully implemented at Moonidih coal mine of BCCL in Jharia Coalfield in the state of Jharkhand. This demonstration project is a path finder for coal mine methane development in Indian mining scenario as methane gas from coal seams have been successfully recovered through vertical wells and is being used as fuel in the gas based generator for electricity generation. The generated electricity is being supplied to Moonidih colony since 27th June, 2008. The total disbursed amount under Gol S&T grant has been fully utilized after which Ministry of Coal vide letter no. 34012/7/2007- CRC (Part) dated 5th July, 2010 decided to formally close the project and a completion report of the project was submitted. As decided, the project equipment were handed over to BCCL in August, 2010 for continuing activities and CMPDI is extending technical assistance to BCCL for carrying out further activities at Moonidih, Dhanbad. 16.1.1 Achievement of the Project The successful implementation of the high technology demonstration project has created enough awareness in the Indian coal mining industry and replicating such projects in other suitable areas is being contemplated. The project has opened a new era in harnessing and utilization technique of coal mine methane, which is otherwise a wasted clean energy resource. The other achievements of the project are summarized as under: - Capacity built-up both in terms of equipment and manpower. - Proving the efficacy of the technology for CMM extraction and its utilization in Indian mining scenario. - Utilization potential of recovered methane has been established and electricity that is being generated from the harnessed CMM has created enough awareness among the local populace. - The cost of electricity generated from the recovered gas is comparable with that of from fossil fuel even in this demonstration project. 16.2 Collaborative development of CBM prospects in Jharia & Raniganj coalfields by the consortium of CIL & ONGC In terms of Govt, of India CBM Policy, consortium of CIL and ONGC has been allotted 2 blocks, one each in Jharia and Raniganj coalfields for development of coal bed methane. CMPDI on behalf of CIL, is implementing the CIL part of the projects. 16.2.1 Jharia CBM Block The Govt, of Jharkhand granted Petroleum Exploration License (PEL) to the consortium of CIL-ONGC on 28th August03 for Jharia CBM block after which the work as detailed in the Minimum Work Programme was taken up. Slim hole drilling (depth range 1000 to 1400m) was carried out by CMPDI and a report, based on this drilling and other available drilling and gas related data, was submitted to ONGC in Feb08. This report has facilitated formulation of Development Plan by ONGC. ONGC has completed drilling of exploratory wells and the requisite tests are being carried out. ONGC is also continuing Horizontal multilateral in-seam drilling in the CBM block. ONGC has submitted Development Plan having budgetary outlay of Rs 1290 crores for Parbatpur Sector of Jharia CBM Block to DGH for consideration and competent approval. However, DGH has asked ONGC to submit an integrated Development Plan for the entire Jharia CBM Block including Parbatpur Sector. In the meantime sale of incidentally produced gas has started in the Jharia block consequent to the approval of the Govt. The participating interest (PI) of CIL in Jharia CBM block is 10o/c with an option to increase it to 26% from Development Phase. Increasing the PI of CIL to 26% is under consideration. 16.2.2 Raniganj CBM Block The Govt, of West Bengal granted Petroleum Exploration License (PEL) for Raniganj CBM block on 09.06.04.The drilling of slim holes by CMPDI has been completed in Nov/07. A report based on slimhole drilling & other available data has been prepared by CMPDI and submitted to ONGC in March 09. This report will facilitate ONGC to prepare Development Plan. ONGC has completed drilling of envisaged exploratory well in the block wherein CBM specific tests are being carried out. 16.3 CBM Related Studies under Promotional Exploration during XI Plan CMPDI is carrying out studies related to Assessment of Coalbed Methane Gas-in-Place Resource of Indian Coalfields/Lignite fields through boreholes being drilled under promotional exploration (XI Plan period). This study will enlarge the CBM resource base of the country and facilitate delineation of more blocks for CBM development. A total of 50 boreholes (30 by CMPDI and 20 by GSI) were to be taken up for studies during the XI Plan Period with a total plan expenditure of Rs 8.59 crore. As envisaged, such studies have been completed in 50 boreholes during XI Plan Period (30 by CMPDI and 20 by GSI). During 2011-12, a total of 6 boreholes located in different coal/lignite fields were taken up for studies by CMPDI and samples collected for desorption and other tests. Further, three CBM assessment reports, based on the generated data, have been submitted during 11-12 by CMPDI. 16.4 CIL R&D Projects 16.4.1 Coal Mine Methane (CMM) R&D project A CIL R&D project titled Development of CMPDI capacity for delineation of viable Coal Mine Methane (CMM) / Abandoned Mine Methane (AMM) blocks in the existing and would be mining areas having partly de-stressed coal in virgin coal seams having a total estimated cost of Rs 5.22 crore has been successfully completed by CMPDI and the project completion report submitted. Following objectives as envisaged in the project have been fulfilled: - Five prospective CMM areas in coalfields of BCCL and CCL have been identified. Detailed assessment of these blocks have been completed and Data Dossiers for 5 CMM blocks (3 in BCCL area and 2 in CCL area) have been prepared incorporating all technical details including coal/gas in place resource, etc. - The business model for taking up CMM development, keeping in view the best interest of CIL, was chalked out and a Model Tender Document was prepared with the help of a consultancy firm. - Studies were carried out to determine the quantity of fugitive methane emission from few selected opencast mines for creation of reliable base line data. The activities taken up in this R&D project has created confidence in the CIL/CMPDI officials to take up commercial development of CMM within the identified areas within CIL leasehold areas. 16.4.2 CIL R&D Project to ascertain recoverability of CBM from deep seated coal and lignite CMPDI successfully implemented a CIL R&D Project entitled An investigation on absorption characteristics of Indian coal to ascertain recoverability of CBM from deep seated coal & lignite resources(Project Code CIL/R&D/1/40/10) wherein NT, Kharagpur was a co-implementing agency. The project was completed in December, 2011 as per schedule. 16.4.3 CIL R&D Project for assessment of prospect of shale gas in Gondwana basin Keeping in view the opportunities in development of shale gas resource, CMPDI took up a R&D project titled Assessment of prospect of Shale Gas in Gondwana basin with special reference to CIL areas with an estimated cost of Rs400.00 lakh (Rupees four hundred lakh only) and duration of 2 V, years along with Advance Resources International, USA as sub-implementing agency. The Apex Committee of R&D Board of CIL has approved the project in March, 2011. The project is under implementation since 1st April 2011 and envisaged actions are being taken. 16.5 Commercial development of Coal Mine Methane (CMM) Commercial development of CMM is a priority area both at the Govt, and Coal Industry level. Successful implementation of the Demonstration Project has already proved the efficacy of the process and five suitable areas within CIL mining leasehold areas were identified. Further, MoC has made CMPDI the Nodal Agency for development of CMM in India. Under the aforesaid background, actions for commercial development were initiated and for the purpose, an Eol was floated for identification of a suitable service provider for development of CMM and views of the respondents were taken. A tender document with bid evaluation criteria was prepared by a consultancy firm hired for the purpose. The final tender document was prepared after incorporation of the acceptable inputs from the respondents. After competent approval, a global tender for identification of a suitable developer for harnessing CMM from the 5 identified prospective blocks (Moonidih CMM Block, Pootkee-Bulliary CMM Block, Mohuda Sub-Basin CMM Block under BCCL leasehold areas and Asnapani-Jarangdih Shaft, North Kathara Phase I-III & Uchitdih under CCL leasehold areas was floated by CMPDI on behalf of CIL/concerned Coal Company on 29.04.2011. The last date of submission of offer was however extended till further notice so that the issue related to operationalization is resolved between MoC and MoP & NG. The matter is under deliberation at the competent level of both the ministries and is likely to be settled soon after which further steps for commercialization will be taken. 16.6 Assessment of CMM potential related to large opencast mines CMPDI carried out Assessment of CMM Potentiality in Dip-side Area of Moher Sub-basin, NCL, Singrauli and CMM Potentiality in Dip-side Area of Korba Coalfield, SECLand further action for commercialization will be taken after resolving the issue of operationalization between MoC and Mop & NG. 16.7 Activities taken up by CBM Lab CBM Lab has carried out the field desorption study at the borehole sites in 6 boreholes during 2010-11 and has generated total gas content and gas composition data. The targets both for the year (6 boreholes) and XI plan period (30 boreholes) have been achieved and valuable CBM specific data have been generated which will facilitate resource assessment and commercial development. CMPDI has created facility for Adsorption Isotherm Test. The equipment installed for the purpose in CBM lab of CMPDI is capable of testing Adsorption capacity of coal samples up to 20 MPa pressure (a pressure of about 2000m depth) and is probably first of its kind in India. With installation of this equipment, CMPDI is fully equipped for generation of complete range of CBM related data. Adsorption Isotherm test for 14 samples of Shale and coal have been carried out in the year 2011-12. In addition to the above, 1100 mine air samples received from different collieries of CCL, ECL, BCCL have been tested and the results submitted. Sample collection and analysis for Ventilation Air Methane (VAM), CMM etc were also taken up. 16.8 CMM/CBM Clearinghouse in India A CMM/CBM clearinghouse was established at CMPDI, Ranchi under the aegis of Ministry of Coal and US EPA on 17th Nov08. The clearinghouse is functioning as the nodal agency for collection and sharing of information on CMM/CBM related data of the country and help in the commercial development of CMM Projects in India by public / private participation, technological collaboration and bringing financial investment opportunities. The clearinghouse has been established with financial support from Coal India Ltd. on behalf of Ministry of Coal and US EPA. A website of India Clearinghouse, http://www.cmmclearinghouse.cmpdi.co.in encompasses all the important information viz. EOI notifications, newsletters in addition to information regarding opportunities existing for development of CMM, VAM, etc. The initial 3 year term for US EPA grant of clearinghouse has been completed in Nov/11 and steps are being taken for further extension of the US EPA grant for the clearinghouse. 17. DEVELOPMENT OF UNDERGROUND COAL GASIFICATION (UCG) 17.1 CIL ONGC Collaborative project in Kasta UCG Block Consequent to signing of MoU between CIL&ONGC in Nov 2006 for taking up pilot scale studies for UCG, CMPDI prepared data packages for 5 prospective UCG sites. Out of the five sites, one Kasta block in Raniganj coalfield was identified by Skochinsky Institute of Mining (SIM), Russia, the consultant appointed by ONGC, for generation of additional data for examining possibility of taking up pilot scale UCG project. Drilling of boreholes in Kasta UCG block has been completed and an assessment of data has been sent to ONGC for examination by the experts engaged for the purpose. 17.2 Commercial development of UCG in CIL command area CMPDI had identified two prospective areas within CIL command area and steps were initiated for commercial development of UCG. A suitable tender document had been prepared after deliberations with the prospective developers in pre-NIT meeting. CMPDI, on behalf of CIL, floated global tender for selection of developers for UCG development in two coal blocks viz. Kaitha block, Ramgarh Coalfield (CIL Command area) and Thesgora C block (WCL Command area) and the offers received were opened on 16.03.2011 (Part-I) and 26.05.2011 (Part-II) respectively. The offers were evaluated by the tender committee in June11 and the same was sent to CIL for competent approval for award of work. The matter was deliberated in the meeting of Functional Directors of CIL on 3rd August, 2011 in Kolkata wherein, CMPDI was advised for re-tendering the same after revisiting the technical evaluation criteria. 18. DELINEATION AND PREPARATION OF DATA-DOSSIERS FORDGH 18.1 Delineation and preparation of Data-dossiers for six prospective Shale gas blocks within Gondwana basin for DGH CMPDI has been awarded the work of Delineation and preparation of Data-dossiers for six prospective Shale gas blocks within Gondwana basin by Director General of Hydrocarbons (DGH) in May, 2011. Such type of studies are being carried out for the first time in coal bearing Gondwana basins. CMPDI carried out detailed shale gas related studies and requisite data related to Rock Eval Test, R0o/0, etc were generated. The draft assessment reports on six Shale gas blocks have been sent to DGH in March, 2012. Final Data-dossiers on the blocks will be prepared by CMPDI after deliberations with DGH, which will facilitate commercial development of Shale gas in India. 18.2 Delineation and preparation of Data-dossiers for prospective CBM blocks for DGH CMPDI has been awarded the work of Delineation and preparation of corresponding Data-dossiers on prospective CBM blocks in Cambay basin, Singrauli and Johila Coalfields for offer of these blocks under CBM Round-V global biddingby Director General of Hydrocarbons (DGH) in May, 2011. CMPDI carried out detailed studies in the identified areas which included studies of data generated through slimholes and also seismic data available for Cambay basin. The draft assessment reports on the studies have been sent to DGH in March, 2012. Final Data-dossiers on the blocks will be prepared by CMPDI after deliberations with DGH which will facilitate commercial development of CBM in these blocks. 19. EU FUNDED RESEARCH PROJECT TITLED GREENHOUSE GAS RECOVERY FROM COAL MINES AND UNMINABLE COAL BEDS AND CONSERVATION OF ENERGY(GHG2E) A multi organizations/multi country project titled Greenhouse Gas Recovery from Coal Mines and unminable Coal beds and conservation of Energy(GHG2E) has been approved under partial funding scheme of European Union Research Commission. In this project there are 11 participating organizations from 7 countries and CMPDI and NT, Kharagpur are the participating organizations from India. CMPDI has got partial funding for execution of the research project and the balance fund has been provided by CIL R&D fund which was approved in February, 2012. The project related activities has been taken up in close association with NT, Kharagpur. 20. GEOLOGICAL EXPLORATION & DRILLING CMPDI continued to carry out coal exploration activities in 2011 - 12 also, mainly in CIL and Non-CIL/Captive Mining blocks. Exploration in CIL blocks was taken up to cater the needs of project planning/production support of subsidiaries of CIL whereas exploration in Non-CIL/Captive Mining blocks was undertaken to facilitate allotment of coal blocks to prospective entrepreneurs. CMPDI has substantially improved the capacity of drilling during XI plan period. As against the achievement of 2.09 lakh metre in 2007-08, CMPDI has achieved 4.98 lakh metre in 2011 -12 through departmental resources and outsourcing. For capacity expansion through modernization of departmental drills, 25 new Mechanical drills have been procured, out of which 8 are deployed as additional drills and 17 as replacement drills. Supply Order for 5 more Mechanical drills has been placed. In addition, 4 high capacity Hydrostatic drills have been procured and deployed as replacement drills. CMPDI has also replaced 38 mud pumps and 46 trucks in the last three years. To meet the increasing work load, recruitment of Geologists/Mechanical Engineers was continued and 115 Geologists, 14 Geophysicists and 27 Mechanical Engineers were inducted through campus interview/open examination since 2008-09. Shortage of non-executive staff is being met through transfers from other subsidiaries of CIL Under outsourcing, the work of 18 blocks involving 7.28 lakh metre of drilling was awarded in 2008-09, out of which drilling has been concluded in 14 blocks. A long term MoU (5 Years), involving 1 lakh metre/annum of drilling, was also signed with MECL. To further enhance the capacity, Global Tender of 8 additional blocks involving 4.37 lakh metre of drilling was floated. Work orders for all the blocks have been issued. Work in two blocks has already started and in 2 blocks (i.e. Salaipahar & Brahmani) work could not start due to local problem.To fulfill the enhanced requirement of coal, core analysis due to increase in drilling, the capacity expansion of CMPDI & CIMFR labs has been taken up and MoU between CMPDI (on behalf of Coal India Ltd.) and CSIR for Quality Evaluation of coal explored from different regions of India was signed at CMPDI, Ranchi on 03.12.2011. 20.1 Drilling Performance in 2011-12 CMPDI deployed its departmental resources for exploration of CIL/Non-CIL/Promotional blocks whereas State Govts, of MP and Orissa deployed resources in CIL blocks only. Besides, four other contractual agencies have also deployed resources for detailed drilling/exploration in CIL/Non-CIL blocks. A total of 100 to 111 drills were deployed in 2011-12 out of which 55 were departmental drills. Apart from it, CMPDI continued the technical supervision of Promotional Exploration work undertaken by MECL in Coal Sector (CIL & SCCL areas) and monitored work of GSI for Promotional Exploration in Coal Sector (CIL area) on behalf of MoC. In 2011-12, CMPDI and its contractual agencies took up exploratory drilling in 90 blocks/mines of 21 coalfields situated in 6 States. These coalfields are Raniganj (9 blocks/mines), Jharia (5), WBokaro (2), Ramgarh (1), South Karanpura (3), Pathakhera (1), Pench Kanhan (2), Kamptee (4), Nand-Bander (3), Wardha Valley (12), Sohagpur (8), Johilla (1), Mand Raigarh (14), Korba (3), Hasdo-Arand (1), Bisrampur (1), Sonhat (1), Tatapani-Ramkola (2), Singrauli (3), Talcher(10)and IbValley (4). Out of90 blocks/mines, 24 were Non-CIL/Captive blocks, 1 Consultancy block and 65 CIL blocks/mines. Departmental drills of CMPDI took up exploratory drilling in 58 blocks/mines whereas contractual agencies drilled in 32 blocks/mines. Under Promotional (Regional) Exploration Programme, MECL has undertaken Promotional drilling in 7 blocks (3 in Mand Raigarh, 1 in Wardha Valley and 3 in Godavari Valley), GSI has undertaken 12 blocks for Promotional drilling (4 in Talcher, 2 in IbValley, 3 in Sohagpur, 1 in Raniganj & 2 in Tatapani Ramakola) and DGM (Nagaland) has undertaken 1 block in Northern Khar for Promotional drilling in Coal Sector. The overall performance of exploratory drilling in 2011-12 is given below: Target Performance of Exploratory Drilling in 2011-12 Agency 2011-12 Achieved Achieved +/. (meter) (metre) (%) (m) A. Detailed Drilling by CMPDI (including Promotional Drilling) : i. Departmental 2,50,000 2,73,018 109% +23,018 ii.Outsourcing: State Govts. 5,000 6,815 136% +1,815 MECL (MOU) 83,000 96,207 116% +13,207 Tendering (CIL blocks) 12,000 17,605 147% +5,605 Tendering (non- CIL blocks) 1,00,000 1,04,779 105% +4,779 Total Outsourcing 2,00,000 225,406 113% +25,406 Total A: 4,50,000 4,98,425 111% +48,425 B. Promotional Drilling by MECL, GSI & Nagaland Govt, in Coal Sector: MECL 52,000 25,998 50% -26,002 GSI 13,000 17,872 137% +4,872 DGM, Nagaland 500 289 58% -211 DGM, Assam 500 0 - -500 Total B: 66,000 44,158 67% -21,842 Total A+B: 5,16,000 5,42,583 105% +26,583 Agency Achieved Growth Prev.Year: In 2010-11 % (m) i. Departmental 2,68,059 2% ii.Outsourcing: State Govts. 7,206 -5% MECL (MOU) 28,160 242% Tendering (CIL blocks) 14,581 21% Tendering (non- CIL blocks) 1,73,785 -40% Total Outsourcing 2,23,732 1% Total A: 4,91,791 1% B. Promotional Drilling by MECL, GSI & Nagaland Govt, in Coal Sector: MECL 29,920 -13% GSI 13,943 28% DGM, Nagaland 83 249% DGM, Assam - - Total B: 43,946 O.5% Total A+B: 5,35,737 1% * In 2011 -12, departmental drills have carried out 2,13,689m drilling in CIL blocks, 55,126m in Non-CIL/Captive Mining Blocks and 4,204m for consultancy work. In 2011-12, CMPDI achieved its departmental and overall drilling targets by 109% and 111% respectively. The performance of departmental drilling was better than previous year with 2% growth and recorded average operational drills productivity of 416 m/drill/month. Non-availability of permission to explore in forest areas has affected the performance of outsourced drilling. MECL could not achieve the targets of Promotional drilling in coal sector due to forest problems. 20.2 Geological Reports: In 2011 -12, a total of 19 Geological Reports (excluding GR for PR) were prepared on the basis of detailed exploration conducted in previous years. The prepared Geological Reports have brought about 3.2 Billion Tonnes of coal resources under Proved category. Under Promotional Exploration Programme, CMPDI, GSI and MECL have submitted 9 Geological Reports on coal blocks, estimating about 4.9 Billion Tonnes of coal resources, in Indicated category, above specified thickness. 21. OUTSIDE - CIL CONSULTANCY SERVICES : During the year 2011-12, 34 consultancy jobs were completed for 30 organisations outside CIL. Some of the major clients/organisations for whom jobs were completed are Steel Authority of India Ltd., National Thermal Power Corporation Ltd., Singareni Collieries Company Ltd., Mineral Exploration Corporation Ltd., Orissa Power Generation Corporation Ltd., National Aluminium Company Ltd., Baitarni West Coal Company Ltd., Ultratech Cement, Jindal Steel & Power Ltd., Naini Coal Company Ltd., Goa Industrial Development Corporation, etc. Presently, 31 outside-CIL consultancy jobs are in hand for 16 organisations like Directorate General of Hydrocarbons, Hindustan Copper Ltd., Manganese Ore (India) Ltd., National Thermal Power Corporation Ltd., Bihar Sponge Iron Ltd., National Aluminium Company Ltd., Central Electricity Authority, Neyveli Lignite Corporation Ltd., Orissa Mining Corporation, Mahaguj Collieries Ltd., Baitarni West Coal Company Ltd., Punjab State Electricity Board, etc. During the year 2011-12,41 outside-CIL consultancy jobs worth Rs 33.26 crores from 28 organisations were procured by CMPDI. Some of the major jobs are: - Delineation and preparation of Data Package & Information Dockets of CBM blocks proposed to be offered under CBM Round-Vand Delineation and preparation of corresponding Data Package for prospective Shale gas blocks within Damodar Valley basin & Sohagpur Sedimentary basin for Directorate General of Hydrocarbons (DGH). - Preparation of Mining Plan & Expansion Project Reports for enhancement of production from Balaghat, Gumgaon & Dongri mines and vetting of TEFR for designing of vertical shaft, winding installation, etc. in respect of upcoming shaft installations at UKWA, Munsar and Gumgaon mines ofM/s Manganese Ore (India) Ltd. - Preparation of Mining Plan and Project Report of Nuagaon- Teliasahi coal block for Orissa Mining Corporation. - Scrutiny and finalization of design and drawings of proposed deepening of existing Production Shaft and Service Shaft of Khetri Mine and proposed shaft of Kolihan Mine and other related jobs of Crusher, Feeders, etc for Hindustan Copper Ltd. 22. RESEARCH* DEVELOPMENT PROJECTS 22.1 R&D Projects under S&T Grant of Ministry of Coal The R&D activity in Coal sector is administered through an apex body namely, Standing Scientific Research Committee (SSRC) with Secretary (Coal) as its Chairman. The other members of this apex body include Chairman CIL, CMDs of CMPDI, SCCL and NLC, Directors of concerned CSIR laboratories, representatives of Department of S&T, Planning Commission and educational institutions, amongst others. The main functions of SSRC are to plan, programme, budget and oversee the implementations of research projects and seek application of the findings of the R&D work done. The SSRC is assisted by a Technical sub-committee headed by CMD, CMPDI. The committee deals with research proposals related to coal exploration, mining, mine safety, coal beneficiation & utilisation and also the project proposals on mine environment and reclamation. CMPDI acts as the Nodal Agency for co-ordination of research activities in the coal sector, which involves identification of Thrust Areas for research activities, identification of agencies which can take up the research work in the identified fields, processing the proposals for Government approval, preparation of budget estimates, disbursement of fund, monitoring the progress of implementation of the projects, etc. Total no. of S&T projects taken up (till 31.3.2012) - 374 Total no. of S&T projects completed (till 31.3.2012) - 302 22.2 Physical performance During XI Plan period, a total of 45 projects have been completed by various agencies. The status of Coal S&T projects during 2011-12 is as under: i) Projects on-going as on 1.4.2011 16 ii) Projects sanctioned by Gol during 2011-12 06 iii) Projects completed during 2011-12 07 iv) Projects on-going as on 1.4.2012 15 Following Coal S&T projects were completed during 2011-12 : i) Delineation of barrier thickness against waterlogged workings in underground coal mines. ii) Model studies on gravity blind back filling method and evaluation of pre-jamming indication parameters in the field. iii) Application of high strength steel roof-bolts in underground coal mines. iv) Catalytic liquefaction of Neyveli Lignite. v) Biological production of clean fuels from coal. vi) Fly ash characterisation for mine void reclamation. vii) Carbon Sequestration in re-vegetated coal mine wastelands. 22.3 Financial status Budget provisions vis-a-vis actual fund disbursement during the period are given below: (Rs in crores) 2010-11 2011-12 RE Actual RE Actual 10.00 10.06 10.62 9.64 22.4 CIL R&D Projects For in-house R&D work of CIL, R&D Board headed by Chairman, CIL is also functioning. CMPDI acts as the Nodal Agency for processing the proposals for CIL approval, preparation of budget estimates, disbursement of fund, monitoring the progress of implementation of the projects, etc. In order to enhance R&D base in command areas of CIL, the CIL Board in its meeting held on 24th March 2008 has delegated substantial powers to the Apex Committee and CIL R&D Board. The Apex Committee is now empowered to sanction individual research project having outlay upto Rs 5.0 crore and Rs 25.0 crore per annum considering all the projects together. CIL R&D Board which earlier had the power to sanction individual project upto Rs 10.0 crore can now sanction individual project upto Rs 50.0 crore. Altogether CIL R&D Board can now sanction research project upto Rs 500.0 crore in a year. So far, 64 projects have been taken up under the funds of CIL R&D Board, out of which 35 projects have been completed till March, 2012. The status of CIL R&D Board Projects during 2011-12 is as follows: i) Projects on-going as on 1.4.2011 24 ii) Projects sanctioned during 2011-12 06 iii) Projects completed during 2011-12 05 iv) Projects foreclosed during 2011-12 01 v) Projects on-going as on 1.4.2012 24 Following R&D projects were completed during 2011-12 : i) Indigenous development of PLC based integrated control and monitoring system for conveyors and other equipment of underground mines. ii) Delineation of workings below railway lines near Ratibati colliery, stability analysis by numerical modelling and possible remedial measures. iii) Development of immediate roof fall prediction system in underground mines using wireless network. iv) An investigation on Adsorption Characteristics of Indian coal and to ascertain recoverability of CBM from deep-seated coal and lignite resources. v) Establishment of co-relation between physico- mechanical properties, chemical properties and bonding strength of Cement & Resin Capsules used in roof bolting. The disbursement of fund for CIL R&D Projects during the year 2011-12 Was Rs 16.65 crore. 23. TELECOMMUNICATION SYSTEM In order to fulfill the vision of Coal India to become a leading global player in energy sector, leveraging of Information Technology plays a crucial role. The Information and Communication technology has been identified as a core enabler in every aspect of business. Aligning this function with IT strategy for overall business goal of the company is of paramount importance. Continuous efforts are being made by CIL and its subsidiaries in updating the communication and IT solutions. To increase transparency, process efficiency, reduce operational cost along with increasing the employee, customer and investor satisfaction, the following major initiatives have been taken :- 1. CIL board has approved Implementation of Enterprise Resource Planning system along with communication infrastructure at Coal India Ltd and all its subsidiaries encompassing all areas, mines, stores, weigh bridges and hospitals etc. to improve its operational and financial efficiencies. An Open tender has already been floated for the same. 2. GPS based operator independent truck despatch system with high speed data and voice communication along with GUI is in the final stage of commissioning in eleven different high production opencast projects to optimize the operations of Heavy Earth Moving Equipment and to enhance the production and productivity of the mine to meet the energy demand of the country. 3. In order to enhance transparency and to make coal available to users, e-auction of coal is made operational through service provider by CIL. Also e-procurement of goods and services, e-filing of grievances and e-payments to employees/suppliers are already in operation to embark upon the improvement of business processes through IT initiative. 4. The dedicated web portal of Coal India Ltd has already been established in bilingual version with employee portal, Tender publications, online grievance registration, posting, investor center and customer corner facility. The portal also facilitates online receipt of career applications for recruitment and link to e- procurement/e-auction service providers. Corporate mail messaging system along with proper network security is already in operation at CIL Hqtrs to cater email facility to all the executives of CIL HQ and Sr. executives of subsidiary companies. Action has been taken for implementation of Centralised Mail Messaging System of 20000 users for all the executives of CIL and its subsidiary companies. 5. Subsidiary companies have made considerable progress in establishing network infrastructure for better communication facility for quick refund of coal value of unlifted quantities and Earnest Money as per directive of MoC using state of the art convergent technology. 6. State of the art IP based EPABX with support of convergent technology (using voice and data through same backbone) is installed and in operation at Coal Bhawan and 15 Park Street office for communication. High speed Internet over LAN at CIL HQ and CIL Mktg. has been provided with proper security and manageability. 24. MINES SAFETY Coal India Ltd has always given the highest priority towards Safety. In CIL, safety is considered as a part of its core production process and is embodied in the mission statement. CIL has framed well defined Safety Policy and formed multidisciplinary Internal Safety Organization (ISO) in every subsidiary company and also at CIL (HQ) to monitor implementation of safety policy. Over the years, the safety performance in CIL has been improved. For instance, in the last year (2011) fatalities in CIL mines were only 52 compared to 249 in 1976. This improvement in safety is attributed to the following reasons: - Collective commitment shown by the management, workers and regulators. - Technological advances in the field of mining methods and use of safer mining machineries. - Continuous improvement knowledge and skill of our workforce through imparting quality training and conscientious safety awareness drive. - Strong oversight and assistances from various quarters. Trend of Fatal Accidents & Fatalities: Fatal Accidents & Fatalities : During the year 2011, there were 50 fatal accidents and 52 fatalities in CIL mines compared to 72 and 90 respectively in 2010. Thus, the number of fatal accidents and fatalities in 2011 compared to 2010 were significantly reduced. This is the lowest fatalities since inception of CIL in 1975. Salient features: 1. Overall trend is reducing for the last five years. 2. The rate of decline is substantial. Details of Accident Statistics A. Overall: - Accident Statistics for CIL in 2011 compared to 2010 are given below :- Table : A SI.No. Parameters 2010 2011 1 Numbers of fatal accidents 72 50 2 Numbers of fatalities 90 52 3 Numbers of serious accidents 292 236 4 Numbers of serious injuries 308 250 5 Fatality Rate per million ton of coal production 0.21 0.12 6 Fatality Rate per 3 lakhs manshift deployed 0.31 0.19 7 Serious injury Rate per mt. ton of coal production 0.71 0.59 8 Serious injury Rate per 3 lakhs man shift deployed 1.06 0.91 Note: 1. Accident Statistics are maintained calendar year-wise in conformity with DGMS practice. 2. All figures are subject to reconciliation with DGMS. Highlights of Accident Statistics - all type of accidents have been reduced in 2011 vis-a-vis 2010 - Lowest fatal accidents and fatalities in CILs history since its inception in the year 1975. - Lowest fatality rates in CILs history since its inception in the year 1975. - Fatal accidents in the year 2011 have been reduced by 30.33% compared to 2010. - Fatalities have been reduced by 42.2o/0 compared to the same period last year. - Serious accident reduced by 19.18%. - Serious injuries reduced by 18.83%. - Fatality Rate per mill, tonne of coal produced down by 42.85%. - Serious Injury Rate per mill, tonne of coal produced down by 16.9% B. Company-wise Break-up of Accidents The Company-wise fatal accidents, fatalities, serious accidents and serious injuries in 2011 compared to 2010 are given below :- Table : B Fatal Accidents & Fatalities Company Accidents Fatalities 2010 2011 2010 2011 ECL 12 8 12 8 BCCL 7 6 7 7 CCL 8 6 10 6 NCL 11 4 11 4 WCL 11 9 14 10 SECL 20 11 33 11 MCL 2 4 2 4 NEC 1 2 1 2 CIL 72 50 90 52 Company Serious Accidents & Fatalities Accidents Serious Injuries 2010 2011 2010 2011 ECL 111 80 111 83 BCCL 60 36 61 41 CCL 11 12 11 12 NCL 11 9 11 11 WCL 42 34 46 37 SECL 51 55 62 56 MCL 6 10 6 10 NEC 0 0 0 0 CIL 292 236 308 250 - Major Activities for Safety & Rescue Division of CIL: 1. Inspection of mine to review safety status & follow up action thereby. 2. Prima-facie fact finding enquiry into major incidences such as mine fire, subsidence, in-rush of water, slope failure, explosion as well as major fatal accident. 3. Organizing meeting of Safety Board of CIL and monitoring recommendations / suggestions of the Safety Board. 4. Organizing meeting of National Dust Prevention Committee (NDPC) and monitoring recommendations / suggestions of the Safety Board. 5. Framing of internal technical circulars related to safety issues and monitoring implementation thereby 6. Maintenance of accidents / major incidents statistics in Database. 7. Publication of Safety Bulletin in order to promote safety awareness. 8. Framing reply of different coal mine safety related parliamentary questions including queries raised by different standing committees such as standing committee on energy, standing committee on labour, as well as questions raised by COPU, MOC, C&AG and VIPs. 9. Monitoring safety related R&D activities in CIL. 10. Imparting training to unit level executive directly engaged in ensuring safety in mine by using SIMTARS accredited trainers. Actions taken for improvement in Safety in Mines undertaken in 2011 To improve safety standard, CIL has vigorously pursued several measures in the year 2011 along with on-going safety related activities / initiatives apart from compliance of statutory requirements for safety, which are given below. A. Strata Management: Roof & Side fall is still one of the major causes of fatal accident and fatality in underground mines. Thrust on prevention of roof & side fall accidents are continued in sustained manner on :- - Elimination of manual loading in phased manner. - Mechanisation of roof drilling (for bolting) planned to be adopted in all mines in phased manner. - Switching over to use of resin capsules from cement capsules in phased manner. - Initiatives have been taken to develop device with appropriate audio-visual alarm to monitor the behavior of overlying roof strata. One R&D project for development of indicators for monitoring impending load on roof in collaboration with NT-Kharagpur is on progress for declaring district. - Several roof-monitoring devices have been developed at Area / Mine level workshop and have been tried in underground mines. - Creating awareness through extensive training of support personnel, dressers and supervisors. B. Spontaneous heating, fire & explosion in mine : - Expedite construction of sectionalization stoppings. - Fresh Pressure Survey for checking efficacy of ventilation. - Initiated action to introduce more number of Gas Chromatographs in addition to conventional method of mine air sampling. - Use of Local Methane Detector (LMD) for early and accurate detection of methane. - R&D on construction of quick setting stopping using Expansion Foam Agents. - Risk assessment based safety management plan by identifying principle hazards including fire potential. C. Safety Training: - Advanced Training By SIMTARS accredited Trainers: Twenty executives were imparted advanced training in safety at SIMTARS, Australia. They are imparting training to unit level executives for disseminating knowledge. As on date 670 executives of different subsidiaries have been trained by them in 2011-12. - Preparation of fresh risk assessment based safety management plan by the executives who are trained by SIMTARS accredited trainers for their respective mines. D. In addition to this the following measures were taken and/ or continued: - For spreading technical knowledge and promoting safety awareness Quarterly Safety Bulletin is being published. - A format for conducting enquiry to reveal the root causes and circumstances leading to accident as well as find out the cause of accident. - Introduced lightweight LED type Cap Lamp for underground miners. - Prepared Action plan for Dust Control with Environment department of CIL - Codification of Safety and Rescue items: Codification of Safety and Rescue item for Underground mines (Revenue and Capital) has been done in consultation with Finance and MM division. 25. MINES RESCUE SERVICES A well-equipped Rescue Service Organization staffed by rescue personnel trained in modern training galleries and equipped with modern rescue equipment is maintained by the subsidiary companies of CIL. At present there are 6 Rescue Stations, 15 Rescue Rooms-with-Refresher Training facilities and 18 Rescue Rooms in CIL. 26. HUMAN RESOURCE DEVELOPMENT 26.1 Overall performance In all, 59792 employees have been trained during 2011-2012. Out of which 14745 were executives and 45047 were non-executives. These trainings include in-house training (training at subsidiary training centers and also at IICM), training in other reputed Institutes outside the company and training abroad. 26.2 In-house Training The in-house trainings were organized at subsidiary HQs. 27 Training Centers and also 102 VT Centers across Coal India and also at IICM. Respective HRD Division organized these trainings after assessing the training need in the respective category of employees within the subsidiary. Special attention were given for improving skill of the employees keeping in mind the need of the industry. Details of in-house training are listed below :- Category Training Short Training Workshop/ Total Seminar Executive 5151 4409 2221 11781 Non- executive 28835 14707 910 44452 Total 33986 19116 3131 56233 i) Within the Country. Besides in-house training at our Training Institutes, VT Centers and IICM, employees were trained within the country at reputed training institutes, in their respective field of operations and also for supplementing our in-house training efforts. Employees from eight subsidiary companies and from CIL HQ have been trained in those reputed institutes. The break-up is given below: Category Training Short Training Workshop/ Total Seminar Executive 1045 612 1267 2924 Non-executive 361 170 62 593 Total 1406 782 1329 3517 ii) Training abroad. Coal India has sent 42 employees (40 executives and 2 non - executives) to different countries from all the subsidiary companies and CIL(HQ)) during the year 2011-2012. Category Training Workshop/Seminar/ Total Conference Executive 28 12 40 Non-executive 2 0 2 Total 30 12 42 26.3 Initiatives - CIL has been recruiting fresh and dynamic young bloods in different disciplines for the last few years consistently. This year, 1106 Management Trainees (Direct recruitment through examination 755 & through campus selection 351) have been recruited in all major disciplines. A special attention has been given in grooming these young and energetic persons in their respective fields throughout the year. In addition to the introductory concept on Coal Industry, they have been trained on basic Management Techniques (MAP) and also in their respective Technical fields (TAP) through regular courses organized by IICM with the reputed faculties. Special attention has also been given in tuning them in their respective specialized working areas by on-the-job training throughout the year. Their probation is closed after appearing for the examination at the end of the year successfully. - 4 Functional Directors have been trained on Advanced Management techniques in reputed Institute in Europe, namely Cambridge and under supervision of ASCI, Hyderabad - 24 senior executives were sent for Advanced Management programme at China conducted by IICM, Ranchi. - 6 middle level executives were sent to Southern Illinois University, USA to attend a programme on Capacity Building in Remote Sensing and Geo-spatial. - 41 Doctors have been given exposure in Occupational Health at Kolkata and Tiruchirapally. - More than 50 executives have been given formal training in Project Management at IICM and other renowned Institute. - 1 programme on Contract management was organized at IIM, Ahmedabad. 2 training programmes on value creation for organizational excellence and 1 programme on finance for non-finance were conducted for 70 executives in collaboration with IISWBM, Kolkata. Another training course on value administration was conducted with the help of YASHADA (Pune) at Kolkata covering about 30 executives from CIL and subsidiaries. - A special training was organized at CIL and all subsidiaries to help the desirous non-executive employees for appearing in the examination for promotion from non-executive to executive cadre. - CIL has bagged the prestigious Training Excellence Award as Second Best Enterprise competing with a vast number of public and private sectors. Shri Bhaskar Chatterjee, the then Secretary, DPE was one of the members of the Jury Board in this competition. 27. MANPOWER 27.1 The total manpower of the Company including its subsidiaries as on 31.03.2012 is 3,71,546 as against 3,83,347 as on 31.3.2011. Subsidiary company wise position of manpower is as below:- Company As on Total ECL 31.3.2012 78009 31.3.2011 81128 BCCL 31.3.2012 64884 31.3.2011 67934 CCL 31.3.2012 50026 31.3.2011 52285 WCL 31.3.2012 56989 31.3.2011 59043 SECL 31.3.2012 76078 31.3.2011 78009 MCL 31.3.2012 22023 31.3.2011 21425 NCL 31.3.2012 16329 31.3.2011 16209 NEC 31.3.2012 2538 31.3.2011 2622 CMPDIL 31.3.2012 3129 31.3.2011 3102 DCC 31.3.2012 562 31.3.2011 582 CIL(HQ) 31.3.2012 979 31.3.2011 1008 CIL as a whole 31.3.2012 371546 31.3.2011 383347 27.2 The presidential directives for Scheduled Castes/Scheduled Tribes/OBC have been implemented in all the subsidiaries/units of Coal India Limited. The representation of SC/ST employees in total manpower of CIL and its Subsidiary Companies as on 1.1.201 land 1.1.2012 are given below :- As on Total Scheduled Castes Scheduled Tribe Manpower Nos. Percentage Nos. Percentage 1.1.2011 386530 79096 20.46 45568 11.79 1.1.2012 374650 77885 20.79 45424 12.12 28. INDUSTRIAL RELATIONS AND EMPLOYEES PARTICIPATION IN MANAGEMENT The Industrial Relations scenario in CIL & its subsidiaries during the financial year remained cordial. JCCs and different Bipartite Committees at Unit /Area and Subsidiary (HQ) levels continued to function normally. Meetings of Standardisation Committee and Apex JCC were held at regular intervals at CIL. Strikes and Bandhs Company-wise details of strikes, mandays lost and production lost and other incidents are furnished in the following table :- STRIKES AND BANDHS Company No. of Strikes / Bandhs No. of other incidents 2010-11 2011-12 2010-11 2011-12 ECL 1+2 2+0 26 31 BCCL 1+0 2+0 6 5 CCL 1+0 2+0 48 110 WCL 1+0 2+0 3 0 SECL 1+0 2+0 0 0 NCL 1+0 2+1 0 0 MCL 1+0 2+0 0 0 NEC 1+0 2+0 0 0 CMPDI 1+0 2+0 0 0 Total 1+2 2+1* 83 146 Company Mandays lost Production Lost (In Tonne) 2010-11 2011-12 2010-11 2011-12 ECL 144345 41462 174878 71000 BCCL 0 6935 0 9825 CCL 146060 30801 146060 118976 WCL 44000 32937 44000 90976 SECL 25590 49563 48721 93362 NCL 44376 10843 20836 116000 MCL 5928 16758 75000 309300 NEC 2002 1737 796 600 CMPDI 353 1347 0 503 Total 412654 192383 510291 810542 Strike- i) Due to one day strike called by 5 Central Trade Unions on 18.10.2011. ii) All India one day General Strike on 28-02-2012. * Bandh - In NCL bandh called by CMS, Krishnshila Project Branch on 30.6.2011. 29. EMPLOYEES WELFARE AND SOCIAL SECURITY SCHEMES 1) EMPLOYEES WELFARE SCHEME: The focus of our Welfare Activities is the welfare of our employees and their families. The coal companies are paying greater attention to the welfare of their workers. Every effort is being made to improve the living conditions of the coal miners. In order to create a sense of belonging and involvement in work, top priority is given by the management to provide housing, medical, educational facilities etc. 2) HOUSING: At the time of Nationalisation, there were only 1,18,366 houses including sub-standard houses. The availability of these houses has increased to 4,15,826 (up to 31.03.2012). The percentage of housing satisfaction has now reached 100%. 3) WATER SUPPLY: As against 2.27 Lakhs population having access to potable water at the time of Nationalisation in 1973, presently a populace of 21,03,328 Lakhs (up to 31.03.2012) has been covered under water supply scheme. 4) MEDICAL FACILITIES: Coal India Ltd and its subsidiaries are extending medical facilities to its employees and their families through various medical establishments from the Dispensary level to the Central and Apex Hospitals in different parts of the coalfields. There are 85 Hospitals with 5,806 Beds, 424 Dispensaries, 664 Ambulance and 1488 Doctors including Specialists in CIL and its subsidiaries to provide medical services to the employees. Besides 12 Ayurvedic Dispensaries are also being run in the Subsidiaries of Coal India Limited to provide indigenous system of treatment to workers. In addition, subsidiary companies have also been organizing different medical camps for the benefit of the villagers/community. Special emphasis has also been given on Occupational Health, HIV/AIDS awareness programme for the employees and their families. 5) EDUCATIONAL FACILITIES: The primary responsibility of providing educational facilities lies with the State Governments. However, the subsidiary companies of CIL have been providing financial assistance and infrastructure facilities to certain renowned schools like DAV Public Schools, Kendriya Vidyalaya, Delhi Public School etc to impart quality education. In addition, as a part of Corporate Social Responsibility (CSR) financial assistance some infrastructures have also been provided to some Educational Institutions operating in the coalfield areas. In addition, Coal India has provided following types of scholarship as per scheme to the employees wards as a part of educational facilities details of which are as under :- (a) Coal India Scholarship Scheme (Revised - 2001) In order to encourage the Sons and Daughters of the employees of Coal India Limited, two types of Scholarship namely Merit and General Scholarship, are being provided every year under prescribed terms and conditions :- Merit Scholarship: Admissible strictly to the students securing 1st to 20th position in Madhyamik/H.S. or any State Board or securing 95<>/o and above marks in ICSE/CBSE/ISC Exam (Class - X and XII) where merit is not declared. General Scholarship: Admissible to the students studying Class-V onwards up to Graduation/Post-graduation level in any discipline subject to prescribed percentage of marks. (b) Cash Award and certificate of appreciation : Every year Cash Award of ff 5000/- and ff 7000/- respectively are provided to the Meritorious Wards of CIL employees who secure 90o/0 or above Marks in aggregate in 10th and 12th Standard Board level Examination. (c) Considering the high cost of technical and medical education in the country, Coal India Limited is providing financial assistance towards meeting the cost of education of the dependent children of Wage Board Employees to the extent of Tuition Fees and Hostel Charges who secure Admission in Engineering in such Colleges viz. NTs, NITs, ISM etc which are short listed by CIL for conducting campus selection and also dependent children securing Admission in Govt. Medical Colleges from the Academic Session 2010- 11 onwards. (d) Payment of Coal India Scholarship to 100 Nos. of students who belongs to BPL category and 25 Nos. of wards of land ousters displaced persons for pursuing degree course (Graduation course) in NTs, NITs and other selected Govt. Engg. Colleges and Central Govt Medical Colleges (MBBS Course) from 2010-11 onwards. 6) Statutory Welfare Measures: In accordance with the provision of the Mines Act 1952 and Rules and Regulations framed there-under, subsidiaries of Coal India Limited are maintaining various statutory welfare facilities for the coal miners such as Canteen, Rest Shelters and Pit Head Baths etc 7) Non-statutory Welfare Measures: Co-operative Stores and Credit Societies: In order to supply essential commodities and Consumer goods at a cheaper rate in the Collieries, 24 Central Co-operatives and 128 Primary Co-operative Stores are functioning in the Coalfield areas of CIL. In addition, 181 Co-operative Credit Societies are also functioning in the Coal Companies. 8) Banking Facilities: The Management of Coal Companies are providing infrastructure facilities to the various Nationalised Banks for opening their Branches and Extension Counters in the Coalfields for the benefit of their workers. Workers are trained to draw their salaries through 463 Number of Banks / Extension Counters and they are also encouraged to practice thrift for the benefit of their families. 9) Corporate Social Responsibility (CSR): CIL has formulated CSR Policy for implementation from 2010-11 onwards. As per the CSR Policy fund has been allocated to each Company based on 3% of the retained earning of previous year subject to a minimum ff 5/- per tonne of coal production in previous year for implementation of CSR activities in and around mining areas within the radius of 15 Kms for the benefit of the villagers and community at large including Scheduled Castes (SC) and Scheduled Tribes (ST). Further, CIL Board is authorized to initiate specific projects abroad under special circumstances. The works include development of community infrastructure like school buildings, community hall, village roads, wells, tube wells, school furniture, Mahila Mandal Activities, Sports & Culture activities, Medical Camps etc. Subsidiary companies have been authorized to consider CSR activities depending on the need accessed for the people. During 2011-12, an amount of Rs 553.33 Crores has been allotted for undertaking CSR activities by the coal companies. 10) Welfare Measures - Mining of coal has profound impact on the communities living in the areas where the mines are established. The obvious impact of the introduction of any industrial activities in such areas is change in the traditional lifestyle of the original inhabitants and indigenous communities and also change in the socio-economic profile of the area. In the above context, Coal India strongly believes that the people living in mining areas are an important stakeholder in the process of mine development and for sustainable development they have to be given share of the benefits of development of the mining projects. In view of the above, as a part of Corporate Social Responsibility, Coal India and its Subsidiary companies are undertaking different welfare activities, in and around the coalfield areas for the benefit of Scheduled Castes(SC) and Scheduled Tribes(ST). The following programme/schemes have been undertaken for benefiting SCs & STs in the coal bearing areas :- a) Creation of Community assets (Infrastructure) like provision for Drinking water, construction of School buildings, Check dams, Village roads, Link roads and Culverts, Dispensaries and Health center, Community Centre, Market place etc. b) Awareness programme and Community activities like Health camp, Medical aids,Family welfare camps, AIDS awareness programme, Immunization camps, Sports & Cultural activities, Plantation etc. 11) Welfare, Development and Empowerment of Women A) Forum of Women in Public Sector (WIPS) With the intention of pursuing the objectives of Directive Principle of State Policy, the Forum of Women in Public Sector (WIPS) was formed. A forum of Women in Public Sector (WIPS) was established on 12th February 1990 under the aegis of Standing Conference of Public Enterprises (SCOPE). The idea of WIPS was conceived when the Bureau of Public Enterprises in collaboration with SCOPE organized a National Convention of women in Public Sector in October 1989, in New Delhi with a view to analyze the problems of women in the Indian context. At this convention, it was decided to create a national network, a support system that would help women employees to harness their full potential and to enhance their contribution in the national development process in general and public enterprises in particular. This forum operates at a National level through its Central apex body at New Delhi and function through four regional centers at Mumbai, Chennai, Kolkata and New Delhi. Aims and objectives of this forum are: - To promote growth and development of women in Public Sector. - To assist the Public Sector Undertaking in organizing the full potential in women employees. - To play a catalytic role in improving the status of women in and around Public Undertakings. Coal India Ltd and its subsidiary companies are extending full fledged support and patronage to the National Conference of Forum of WIPS held every year in February at predetermined locations by sponsorship of the event, nomination of maximum number of delegates and also by competing for the BEST ENTERPRISE award. During the year 2011 -12, SECL and BCCL were conferred with 2nd Best and 3rd Best Enterprise Award in the National Level Conference held at MM Ahmedabad on 12th Feb2012 in recognition of their out-standing activities for upliftment of women employees. The Award was handed over by Sri Narendra Modi, Honble Chief Minister of Gujrat. In recent years, the WIPS cell have done commendable work in reaching out to the grass root level women employees, empowering them by suggesting gainful redeployment, training and uplifting their morale by recognizing outstanding achievement, recognizing and honoring the exceptional talent. B) WELFARE SCHEMES FOR WOMEN The Mines Creche Rules 1946 aims at providing healthy growth and welfare of children of women employees. There are provisions for special care and protection of children up to the age of six years. The Mines Act and the Mines Creches Rules prescribe detailed norm of women employees, number of staff, well- ventilated rooms as per specification given, toilets, medical facilities and medical check-up of children, proper drinking water facilities and proper diet for children. Special emphasis has been given on cleanliness to safeguard the health of the children. The provisions of Maternity Benefit Act and Equal Remuneration Act are being implemented benefiting the women employees of the Company. (C) OTHERS WELFARE MEASURES Female employees are also employed on other jobs, as para- medical staff, doctors, computer professionals, security personnel etc. CIL has established Nurses training institutes where training is imparted to the trainee nurses to find opportunity in or around the industry. Mahila Mondals, Mahila Samity and other such forums are working in different units/establishments and coalfield areas to look after the Welfare of female employees and female spouses/female dependents. They organize symposiums, seminars, training programme and cultural activities from time to time for women. Women employees take active part in the Sports events organized by CIL. Ms.Sumita Laha, has won laurels for the country in power lifting in various international meets. As per the Wage Agreement, female dependant of the employee who dies while in service is provided with employment or monetary compensation. Based on the guidelines of National Commission for Women and Gol a Womens Cell has been constituted to look into the complaints of women employees for discrimination and sexual harassment. In accordance with the judgment by the Honble Supreme Court in the case of Vishakha and others - vs- State of Rajasthan, CIL and its subsidiaries have made amendment in the service rules/standing orders of employees. 30. TREE PLANTATION/AFFORESTATION In order to improve the environment, Coal India Limited and its subsidiaries have planted 20.8 lakhs tree saplings during 2011- 12 in the Coalfields under plantation/afforestation programme. In total, subsidiaries of Coal India Limited have planted around 76 million of plant over a land area of over 33000 ha till date. 31. PROGRESSIVE USE OF HINDI Coal India Ltd. continued its efforts to propagate and spread the progressive use of Hindi during the period under review. Adopting the Official Language Policy of the Union which is based on motivation and encouragement, Coal India is speeding the pace of implementation among its employees. The top management gives it high priority. To augment the process of implementation of the provisions of the Official Languages Act and Rules made thereunder and to increase the Hindi Correspondence in different departments of CIL, regular meeting of Official Language Implementation Committee is being held. The last meeting of Official Language Implementation Committee was held on 15.12.2011 where two members of Hindi Salahkar Samiti of Ministry of Coal, Govt, of India were present as observers. As per the directives of Govt, of India, Hindi Divas was celebrated on 14th September 2011 at Coal Bhawan. Hindi Fortnight starting from 14.09.2011 was observed in all offices of Coal India Ltd. During the fortnight various Hindi Competitions such as Hindi Noting-Drafting, Hindi Essay, Hindi Dictation,Translation & Hindi typing were organized among the employees of Coal India Ltd. where large numbers of employees participated enthusiastically. The winners were awarded with cash awards with certificates. This brought collective awareness towards the use of Rajbhasha in Official works. Another feather in the cap during the period under review is that Coal India Ltd. bagged first prize in the corporate offices category for the best implementation of Official Language Policy of the Union by Town Official Language Implementation Committee (PSUS), Kolkata during its half yearly meeting-cum-prize distribution ceremony held on 30.08.2011 at Hotel Hindustan International. With a view to create working atmosphere of Official Language, Hindi workshops were organized regularly for the employees who have working knowledge of Hindi so that they may be aware of the use of Hindi words, Hindi noting and drafting in their regular Official works. During the year under review, 70 persons were trained in such workshops. Training for Hindi Language is near completion. However, 02 untrained persons were nominated for Hindi Praveen Classes during the year. Apart from this, Manager (Rajbhasha) was nominated in an orientation programme for Hindi Officers/Managers organized by Central Hindi Training Institute, Govt, of India, Ministry of Home Affairs, Department of Official Language, New Delhi from 19.03.2012 to 23.03.2012. CIL representative participated in Coal India level Rajbhasha Sammelan organized by Mahanadi Coalfields Limited from 11.04.2012 to 12.04.2012. Inspection of Offices is also a part of Implementation. During the year under review one subsidiary company, one subordinate office and one Regional sales Office was inspected regarding progressive use of Hindi by the representatives of Headquarters. The shortcomings seen towards implementation during the inspection were corrected and concerned officials were advised to do more work in Hindi as per instructions given in the Annual Programme. Apart from this, the 3rd Sub-Committee of Parliament on Official Language inspected two offices of Coal India Ltd. to observe the status of the use of Hindi in official works and to ensure that the provisions of Official Language Act and Rules made there under are properly complied with. Full support and coordination provided to them by the Officials of Head quarters. Help literature and Hindi Dictionaries were provided to the sections on their indent for smooth use of Rajbhasha in Official works. Unicode on Computers is being activated in each and every Computer. As per decision taken in Official Language Implementation Committee Meeting, 10 sets of seven selected Hindi Magazines are purchased and being distributed to different departments with a view to enhance Hindi knowledge of employees. 32. VIGILANCE SET UP The anti-corruption activities in CIL and its subsidiary companies have been institutionalized by setting up Vigilance Departments in CIL and eight subsidiary companies each of which is headed by a Chief Vigilance Officer (CVO), appointed by the Govt, of India in consultation with Central Vigilance Commission (CVC) on tenure basis, drawn from various government services. During the year 2011-12, 33 Intensive Examination of Works/Contracts were undertaken by CIL and its subsidiary companies. In addition, 150 Surprise Inspections were carried out and 398 investigation cases were completed by them. Besides, 70 Departmental Inquiries were disposed of which resulted in punitive action against 215 officials of CIL and subsidiary companies. Such examinations/investigations have resulted in initiation of various system improvement measures. The CIL Board was apprised by Chairman, CIL about the observance of Vigilance Awareness Week 2011 and the pledge was read in the Board meeting. Vigilance Awareness Period - 2011 was observed at CIL, Kolkata from 31.10.2011 to 05.11.11. Keeping in view the theme of observance of Vigilance Awareness Week-2011 i.e. Participative Vigilance, System Improvement Suggestions were invited for considering their implementation by CIL & Subsidiary Companies. In order to generate wide response it was also announced that employees whose suggestions would qualify for final analysis/examination would be given cash award. The following suggestions for system improvement were accepted for implementation: i) Formation of standing tender committee for finalization of tenders. ii) System Improvement relating to Civil engineering works in line with circulars issued by MCL iii) Foreign training of executives. iv) Verification of bonafide end use of coal by actual consumers. v) e-procurement. vi) Installation of GPS based tracking system in hired cars and cars owned by CIL for tracking their movement and accessing other relevant data. Concerned HoDs have been advised for taking further necessary action for implementation of the above system improvement suggestions. An open session was held during vigilance week with a view to focus on the role of every individual on Participative Vigilance. A large number of employees of CIL Hqrs. attended the session. The CVO, CIL delivered the welcome address followed by deliberations by prominent personalities like Sister BK Asmita of Brahma Kumari Ishwariya Vishwavidyalaya, Bangur Centre, Kolkata and Swami Tattawa sarananda, Principal, Ramakrishna Mission Sikshanmandira, Belurmath. 33. PARTICULARS OF EMPLOYEES No Employee had received remuneration during the year 2011- 12, either equal to or in excess of the limits prescribed under Section 217(2A) of the Companies Act,1956 read with the Companies (Particulars of Employees) Rules,1975 as amended. 34. BOARD OF DIRECTORS Shri N.OJha, Director (Technical), Coal India Ltd was entrusted with the additional charge of Chairman cum Managing Director of Coal India Ltd with effect from March 01,2011 (FN). On attaining the age of superannuation, he relinquished the charge of the office of Chairman cum Managing Director of the company from February 1 st 2012. Ms. Zohra Chatterji, Additional Secretary, MoC assumed the additional charge of Office of Chairman cum Managing Director, CIL with effect from 01.02.2012 (FN). Shri R.Mohan Das, Director (P&IR), Shri A.K.Sinha, Director (Finance) were on the Board throughout the year. Shri N.Kumar assumed the charge of Director (Technical) with effect from 01.02.2012(FN). Shri Alok Perti, Special Secretary, MoC continued as part-time official Director on the Board till 31.08.2011. Shri A.K.Bhalla, Joint Secretary, MoC was appointed as Part time Official Director on 20.09.2011 and continued till 13.10.2011. Ms Zohra Chatterji was appointed as Part Time Official Director with effect from 12.11.2011. Ms Anjali Anand Srivastava, Joint Secretary & Financial Advisor, New Delhi continued as Part Time Director on the Board of the company throughout the year. During the year Prof S.K.Barua, Dr A.K.Rath, Shri Kamal R Gupta, Dr (Smt) Sheela Bhide, Dr R.N.Trivedi, Ms Sachi Chaudhuri and Shri Mohd. Anis Ansari continued as Independent Directors. Shri DCGarg,CMD, Western Coalfields Limited and Shri A.K.Singh, CMD, Central Mine Planning & Design Institute Limited and Shri Pradeep Bhatnagar, Addl. Member (Traffic Transportation) continued on the Board as permanent invitees. Your Directors wish to place on record their deep sense of appreciation for the valuable guidance and services rendered by the directors during their tenure, who ceased to be Directors during the year. In terms of Article 33(d) of the Articles of Association of the Company, one third of the Directors are liable to retire by rotation shall retire at the ensuing Annual General Meeting and they are eligible for reappointment. The Board of Directors held 14 meetings during the year 2011 - 12. 35. DIRECTORS RESPONSIBILITY STATEMENT In terms of section 217(2AA) of the Companies Act, 1956, read with the significant accounting policy at Note 33 and Additional Notes on Accounts at Note 34 forming part of accounts (CIL- Standalone 2011-12), it is confirmed: i) That in preparation of the Annual Accounts, applicable Accounting Standards have been followed and that no material departures have been made from the same; ii) That such accounting policies have been selected and applied consistently through judgments and estimates that are reasonable and prudent, to give a true and fair view of state of affairs of the company at the end of the financial year and profit & loss of the company for that period; iii) That proper and sufficient care have been taken for maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and iv) That annual accounts have been prepared on a going concern basis. 36. ACCOUNTS OF THE SUBSIDIARIES In terms of General Circular No.2/2011 dated 8th Feb 2011 from Ministry of Corporate Affairs that Annual Accounts of the subsidiary companies and the related information shall be made available to the shareholders seeking such information. 37. B.I.F.R AND BRPSE STATUS 37.1 Eastern Coalfields Limited (ECL) In the hearing held on 08.06.2011, the BIFR directed the company to serve a copy of DMRP and TEV Report to all the stakeholders, advised MA to call a joint meeting of all the stakeholders within four weeks and submit are port if any on the DMRP and TEV Report vis-a-vis the suggestions of other stake holders within six weeks. The directions of BIFR were complied. As per summary record of proceedings of the meeting held on 02.09.2011, the BIFR advised to consider the following points while finalizing the MDRS: 1. Pricing of coal should be at near import parity price. The sales, profitability and cash flow projections should be submitted under two scenarios (1) With sale price of coal at import party price, the Cost of Scheme/means of finance should also be revised accordingly (2) With Coal India pricing guidelines. 2. The profitability projections should be with conservative estimates and based on past trend with reasonable and practically achievable goals. 3. The production targets should be reviewed and achievable targets may be incorporated in the MDRS. Accordingly DMRP, September, 2011 was submitted considering the above points. As per the revised DMRP of ECL- September, 2011, the net-worth of the company is slated to become positive in 2015-16. Effective steps have been taken to successfully implement the revival plan and it is expected that the company will come out of BIFR by 2015-16. 37.2 Bharat Coking Coal Limited (BCCL) BCCL submitted its Revival Plan to BRPSE in April05 suitably modifying the Rehabilitation Plan submitted earlier to BIFR on 12.04.2004. BRPSE recommended the Rehabilitation Plan of BCCL to BIFR for concurrence as confirmed vide OM no. 38039/1/2008-CA-ll(Pt-l) dt. 3/10/2008 of Director MOC. In its hearing held on 18.05.2009, BIFR directed BCCL to submit updated Revival Scheme/ Proposal for revival of BCCL. Accordingly a Draft Rehabilitation Scheme (DRS) was submitted to BIFR vide ref. no. CMD: ES:F:BIFR:09:771 dated 11.08.2009. The said Draft Rehabilitation Scheme has since been approved by BIFR as communicated by Bench Officer- II, BIFR on 28.10.2009 and the same has also been vetted by MOC, Govt, of India as communicated by Under Secretary to Govt, of India, MOC vide reference no. 13011/4/2004-CA-II(Vol.II) dt. 25.02.2010. A review hearing was held on 28.09.2010 on the progress of implementation of the Revival Plan. In the said hearing, the company was directed by BIFR to continue to submit the compliance report(s) from time to time. The Company has been regular in submission of said progress Report to BIFR with an information to MOC. 38. ACKNOWLEDGEMENT The Board of Directors of your Company wishes to record their deep sense of appreciation for the sincere efforts put in by the employees of the company and the Trade Unions. Your Directors also gratefully acknowledges the co-operation, support and guidance extended to the company by the various Ministries of the Government of India in general and Ministry of Coal in particular, besides the State Governments. Your Directors also acknowledges with thanks the assistance and guidance rendered by the Auditors, the Comptroller and Auditor General of India and the Registrar of Companies, West Bengal and wishes to place on record their sincere thanks to the Consumers for their patronage. 39. ADDENDA The following are annexed. i) The comments and review of the Comptroller and Auditor General of India. ii) Replies to the observations made by the Statutory Auditors on the Accounts for the year ended 31st March, 2012. iii) Statement pursuant to Sec. 2120) (e) of the Companies Act, 1956. iv) Foreign Exchange Earning and Outgo (Annexure I) v) Details about research and development of the Company (Annexure II). vi) Observations of Auditor and Management Explanation under Sec 217(3) of Companies Act 1956. (Annexure III). vii) Performance against MoU for the year 2011-12 (Annexure IV). For and on behalf of the Board of Directors S.Narsing Rao Chairman Kolkata, 6th August, 2012

Source : Dion Global Solutions Limited

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