Coal India Directors Report, Coal India Reports by Directors

Coal India

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Directors Report Year End : Mar '15    Mar 14
Dear Members,
 On behalf of the Board of Directors, I have great pleasure in
 presenting to you, the 41st Annual Report of Coal India Limited (CIL)
 and Audited Accounts for the year ended 31st March, 2015 together with
 the reports of Statutory Auditors and Comptroller and Auditor General
 of India thereon.
 Coal India Limited (CIL) is a ''Maharatna'' company 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 one of the largest corporate employers with manpower of
 3,33,097 (as on 1st April, 2015). CIL operates through 82 mining areas
 spread over eight provincial states of India. Coal India Limited has
 430 mines of which 227 are underground, 175 opencast and 28 mixed
 mines. CIL further operates 15 coal washeries, (12 coking coal and 3
 non-coking coal) and also manages other establishments like workshops,
 hospitals, and so on. CIL has 27 training institutes. Indian Institute
 of Coal Management (IICM) is an excellent training centre operates
 under CIL and imparts multi-disciplinary management development
 programmes to the executives. Coal India''s major consumers are Power
 and Steel sectors. Others include cement, fertilizer, brick kilns, and
 a host of other industries.
 CIL has eight fully owned Indian subsidiary companies (direct): 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 viz. Coal India
 Africana Limitada (CIAL).
 The mines in Assam i.e. North Eastern Coalfields is managed directly by
 CIL. Similarly, Dankuni Coal Complex is on lease with South Eastern
 Coalfields Limited.
 MCL has three subsidiaries, namely MNH Shakti Ltd., MJSJ Coal Ltd. and
 Mahanadi Basin Power Ltd.
 a. MNH Shakti Limited
 MNH Shakti Ltd was incorporated on 16th July, 2008 as a Joint Venture
 Company of MCL. MNH Shakti Ltd had been formed for operation of
 Talabira OCP block where MCL is holding 70% share, Neyveli Lignite
 Corporation Ltd 15% share and Hindalco Industries Ltd. balance 15%
 share. The Share Capital of MNH Shakti Ltd. as on 31-03-2015 was Rs.
 85.10 Crore. The Hon''ble Supreme Court of India in its judgment dated
 25.08.2014 and order dated 24.09.2014 declared allocation of Talabira -
 II and Talabira - III coal blocks allocated to MNH Shakti Ltd. as
 illegal and has quashed the allocation.
 b. MJSJ Coal Limited
 MJSJ Coal Ltd was incorporated on 13th August, 2008 as a Joint Venture
 Company of MCL. MJSJ Coal Ltd had been formed for operation of
 Gopalprasad OCP where MCL is holding 60% share, JSW Steel Limited and
 JSW Energy Limited 11% share each and Shyam Metalics and Energy Ltd
 (formerly known as Shyam DRI Power Limited) and Jindal Stainless
 Limited 9% share each. The paid up Share Capital of MJSJ Coal Ltd. as
 on 31-03-2015 was Rs. 95.10 Crore. The Hon''ble Supreme Court of India
 in its judgement dated 25.08.2014 and order dated 24.09.2014 declared
 allocation of Utkal-A coal block allocated to MJSJ Coal Ltd.  as
 illegal and has quashed the allocation.
 c. Mahanadi Basin Power Limited
 Another Company Mahanadi Basin Power Limited (MBPL) was
 incorporated on 2nd December, 2011 and certificate for commencement of
 business issued by ROC on 06-02- 2012. MBPL had been formed as an SPV
 with wholly owned subsidiary of Mahanadi Coalfields Ltd for power
 generation of 2x800 MW through Pit Head Power plant at Basundhara
 Coalfields. The Share Capital of Mahanadi Basin Power Limited as on
 31-03-2015 was Rs. 5 Lakhs.
 Subsidiaries of SECL
 SECL had incorporated two subsidiary companies viz.
 M/s Chhattisgarh East Railway Ltd on 12th March''2013 and M/s
 Chhattisgarh East- West Railway Ltd on 25th March''2013 with 64%
 holding in each of the subsidiaries for construction of railway lines
 for expeditious evacuation of coal.
 a. CIL achieved a production of 494.24 MT of coal, removed 886.53 MM3
 of OB and achieved an off- take of 489.38 MT with a growth of
 6.88%,9.92% & 3.77% respectively compared to the last year.
 b. All subsidiaries achieved a growth in production compared to the
 last year. There was an impressive growth in OB removal during 2014-15.
 Except MCL, all other subsidiaries had achieved a growth in OB removal.
 The negative growth in MCL was on account of land acquisition problems.
 All subsidiaries other than BCCL had achieved a growth in off-take
 compared to the last year. The negative growth in BCCL was due to less
 supply of wagons.
 c. ECL came out of BIFR. BCCL was awarded Mini Ratna status.
 d. Government of India divested further 10% of its holding in CIL in
 January 2015. An amount of Rs. 22,557 crores was realized. This was the
 highest divestment amount received by the GoI by selling its stake in
 any company till date.
 e. CIL Board had approved 7 Coal Projects having an annual capacity of
 73.42 MT.
 f. Project Report for setting up of Super Critical Thermal Power
 Project (2X800MW) at MCL namely Mahanadi Basin Power Limited was
 approved by CIL Board.
 2.1 Financial Results (CIL consolidated)
 CIL is one of the largest profit making and tax & dividend paying
 enterprises. CIL and its subsidiaries had achieved an aggregate pre-tax
 profit of Rs. 21,583.92 crores for the year 2014-15 against a pre-tax
 profit of Rs. 22,879.54 crores in the year 2013-14.
                                                (Rs. in crores)
 Company                                    2014-15     2013-14
 (CIL subsidiaries/ CIL standalone)         Profit       Profit
 ECL                                    ( ) 1782.41    ( ) 1299.28
 BCCL                                   ( ) 1154.22    ( ) 2089.01
 CCL                                    ( ) 2740.34    ( ) 2525.87
 NCL                                    ( ) 3713.47    ( ) 3355.71
 WCL                                     ( ) 544.79     ( ) 325.86
 SECL (consolidated)                    ( ) 5659.46    ( ) 7202.40
 MCL (consolidated)                     ( ) 5314.24    ( ) 5429.08
 CMPDIL                                   ( ) 39.33      ( ) 34.60
 CIL (standalone)                      ( ) 13651.89   ( ) 15420.47
 Sub-Total                             ( ) 34600.15   ( ) 37682.28
 Less: Dividend from Subsidiaries      (-) 13011.72   (-) 14406.82
 Total                                 ( ) 21588.43   ( ) 23275.46
 Adjustment for exchange rate 
 variation on Current Account
 of overseas subsidiary                   ( ) (4.51)      ( ) 0.72
 Adjustment for waiver of accrued 
 interest of BCCL                             -         (-) 396.64
 Overall Profit as per Consolidated 
 Accounts                              ( ) 21583.92   ( ) 22879.54
 CIL as a group had achieved a post tax profit of Rs. 13,726.70 crores in
 2014-15 (excluding share of minority loss of Rs. 0.09 crore; previous
 year Rs. 0.04 crore) as compared to Rs. 15,111.67 crores in 2013-14.
 Highlights of performance
 The highlights of performance of Coal India Limited including its
 Subsidiaries for the year 2014-15 compared to previous year are shown
 in the table below:
                                               2014-15      2013-14
 Production of Coal (in million tonnes)        494.24        462.42
 Off-take of Coal (in million tonnes)          489.38        471.58
 Sales (Gross) (Rs./Crores)                  95434.76      89216.86
 Capital Employed (Rs./Crores) Note- 1       76554.91      74891.87
 Capital Employed (Rs./Crores)- 
 excluding capital work in progress and      71395.54      70576.06
 intangible assets under development.
 Net Worth (Rs./Crores) (As per Accounts)    40343.33      42391.86
 Profit Before Tax (Rs./Crores)              21583.92      22879.54
 Profit after Tax (Rs./Crores)               13726.70      15111.67
 PAT / Capital Employed (in %)                  17.93         20.18
 Profit before Tax / Net Worth (in %)           53.50         53.97
 Profit after Tax / Net Worth (in %)            34.02         35.65
 Earnings Per Share ( Rs.)                      21.73         23.92
 (Considering Face Value of Rs.10 per share)
 Dividend per Share (Rs.)                       20.70         29.00
 (Considering Face Value of Rs.10 per share)
 Coal Stock (Net) (in terms of No. of 
 months Net Sales)                               0.79          0.72
 Trade Receivables (Net) (in terms of 
 No of Months of Gross Sales)                    1.07          1.11
 Capital employed = Gross Block of Fixed assets (including capital work
 in progress and intangible assets under development) less accumulated
 depreciation plus current assets minus current liabilities.
 Transfer to Reserves
 During the year 2014-15, a sum of Rs. 2578.50 crore was transferred to
 General Reserve out of CIL (Consolidated) profits. This includes
 transfer of Rs. 1338.34 crore out of CIL (Standalone) profits.
 2.2 Dividend Income and Pay Outs (CIL- standalone)
 While the financial statements of both CIL standalone and CIL
 consolidated are presented separately, it is only the CIL (standalone)
 company which is listed and relevant for dividend payment to its
 shareholders. The dividend to its shareholders are paid out of CIL''s
 standalone income, the major part of which constitutes of the dividend
 income received by it (CIL- standalone) from its five profit making
 subsidiaries i.e. CCL, NCL, WCL, SECL and MCL.
 The breakup of such dividend (interim   final) received and accounted
 for during the year from different subsidiaries are given below:-
 During the year Coal India Limited (standalone) has paid a total
 dividend (by way of interim dividend) of Rs. 13074.88 crores @ Rs. 20.70
 per share (Rs. 18317.46 crores @ Rs. 29.00 per share) on 6316364400 number
 of Equity Shares of Rs. 10/- each fully paid up. Out of above total
 dividend, the share of Govt of India was Rs. 10414.14 crores and for
 other shareholders, Rs. 2660.74 crores. (Previous year - Govt of India -
 Rs. 16485.71 crores and other shareholders - Rs. 1831.75 crores)
 2.3 Observation of the Statutory Auditors
 The Statutory Auditors have given their observations on the standalone
 and consolidated accounts of the Company for the year ended 31st
 March''2015. The Auditors'' observations in terms of Section
 134(3)(f)(i) of the Companies Act''2013 and Management Explanation are
 enclosed as Annexure-V and Annexure-XV(B).
 3.1 (a) Off-take of Raw Coal
 Off-take of raw coal continued to maintain its upward trend and reached
 489.377 million tonnes for fiscal ended March 2015, surpassing previous
 best of 471.581 million tonnes achieved during the last year, i.e., an
 increase of 3.8 % over the last year. The overall raw coal off-take
 achieved was 94.1 % of the Annual Action Plan Target.
 Company-wise target vis-a-vis actual off-take for 2014-15 and 2013-14
 are shown below:
 From the above, it may be seen that ECL had not only exceeded its
 target but also achieved a positive growth compared to the last year.
 Barring BCCL, all other coal companies had registered a positive growth
 in off-take.
 Off-take suffered mainly due to:
 - Transportation constraints resulting from seizure of transport
 trucks for election purposes in almost all the coal companies during
 the General Election in the First Quarter.
 - Major accident near Latehar affecting traffic movement in
 Mughalsarai section for 3 days during September''14.
 - Production constraint and ageing infrastructure caused frequent CHP
 breakdown at various projects at NCL, delay in renewal of
 transportation contracts at the coal companies, Local agitation / Law &
 order problem at CCL/ MCL.
 - Restriction in transportation at MCL during 11AM to 3 PM by Odisha
 Govt, in the months of May-June.
 - Restriction imposed by District Administration for transportation
 of coal between 9.00 AM to 5.00 PM resulting in loss of 4 to 5 rakes
 per day at MCL-Ib Valley.
 - Inadequate availability of wagons at MCL-Ib Valley, SECL-Korba and
 at ECR-served sidings of BCCL/CCL. Coal transportation constraints at
 SECL due to the delay in finalization of ESM contracts & transportation
 constraints at WCL.
 - Heavy rain during monsoon and effect of Cyclone Hud-Hud at NCL, MCL
 and CCL during October''14.
 - Strike by Trade Union affecting off-take & loading during
 January''15 and railway restriction for up-country movement /
 inadequate availability of wagons during the 4th quarter.
 Sector-wise break-up of dispatch of coal & coal products in 2014-15
 against the target and last year''s actual is given below:
 In order to cater to the enhanced requirement of power sector due to
 decrease in stock at power plants and increase in number of power
 plants carrying critical coal stock, quantity offered through e-
 auction was regulated leading to negative growth in other sector.
 3.2 Dispatches of coal and coal products by various modes
 Dispatches of coal and coal products during 2014-15 went upto 489.982
 million tonnes from 471.484 million tonnes registering a growth of 3.9
 %. Overall dispatch by Non-Rail mode had been almost 101% of the
 target. Growth in despatches via Rail mode was 2.7 % whereas in the
 overall Non-Rail mode it increased by 5.4 %. Road despatches increased
 by 8.2% over the previous year. Movement by MGR was 1.5% above the last
 Dispatch of coal and coal products by various modes for the years
 2014-15 and 2013-14 is given below:
 3. 3 Wagon Loading
 Overall wagon loading materialization was 89.1 % of the target. This
 was achieved due to sustained efforts and regular coordination with
 railways at various levels. The increase in loading over the last year
 was of 4.3 rakes per day. Company-wise performance showed that WCL
 achieved its target. ECL, BCCL, CCL, WCL, MCL &NEC exceeded last
 year''s level of loading.
 Wagon loading suffered mainly due to intermittent law and order problem
 at CCL and MCL, delay in finalization of ESM road transport contracts
 at SECL, transportation constraints at WCL and CHP problem at various
 projects of NCL.
 3.4 Consumer satisfaction
 i. In order to ensure enhanced customer satisfaction, special emphasis
 was given to quality management. Various steps are taken to monitor
 quality right at the coalface apart from bringing further improvements
 in crushing, handling, loading and transport system.
 ii. CIL has built coal handling plants for a capacity of about 296 MT
 per annum so as to maximize dispatches of crushed/sized coal to its
 consumers. In addition, Washeries at BCCL, CCL, WCL and NCL have
 adequate crushing / sizing facilities to the tune of about 36.8 million
 tonnes.CIL has also initiated action to establish 15 more coal
 washeries with combined capacity of 112.6 Mty.
 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 and improved fragmentation of coal
 etc. are being taken.
 iv. Surface Miners have been deployed by CIL for selective mining at
 some of the OCP mines to improve the quality of coal. Action is being
 taken for deployment of more surface miners in other OCP mines where
 geo-mining condition permits their usage. Already 56 Surface Miners
 have been deployed in CIL at opencast mines which are working
 v. Joint sampling system is in vogue for major consuming sectors e.g.
 power utilities, steel, cement, sponge iron covering more than 95% of
 total production of CIL. Large consumers having annual quantity of 0.4
 MT or more and having FSA have been covered under sampling.
 vi. From 1st October, 2013, independent 3rd party sampling and analysis
 was introduced for more transparency in the system. Subsidiary coal
 companies have procured 121 Bomb Calorimeters for more accurate and
 transparent results of analysis of coal samples. The sampling and
 analysis are being done in the presence of customers as per provision
 of FSA at loading end, and based on the results, the customers are
 paying coal bills as per the analyzed grades. During 2014-15 the
 achievement of grade conformity in respect of sampling and analysis was
 to the tune of 97.17% in respect of supplies to power sector.
 vii. Pursuant to the decision taken in the meeting with Association of
 Power Producers during June 2014, on and above the existing system of
 coal sampling at the loading end, it was decided that power producers
 may also engage their Third Party Agency from a list of 25 empanelled
 agencies for taking part in drawing coal samples and analyzing the
 same. In view of the above, PUs / IPPs have started selecting agencies
 w.e.f.  December'' 2014 onwards and finalized them except a few who
 are in process of finalizing.
 viii. Electronic weighbridges with the facility of electronic printout
 have been installed at rail loading points to ensure that coal
 dispatches are made only after proper weighment.  For this purpose,
 Coal Companies have installed 157 rail weighbridges in the Railway
 Sidings and 569 road weighbridges for weighment of trucks. Coal
 companies have also taken action for installation of standby
 weighbridges to ensure 100% weighment.
 ix. 24 Auto Mechanical Samplers (AMS) are also working in subsidiary
 coal companies for coal sampling for the bulk consumers eliminating
 chances of biasness in the sampling process. Procurement of further AMS
 is under process.  Thought process for installing online analyzers in
 new washeries on conveyor belts for proper quality management has also
 x. In order to ensure consumer satisfaction and resolve consumer
 complaints, special emphasis has been given to quality management and
 redressal of consumer complaints.  Percentage of complaint resolved was
 99.44% [April 2014 to March 2015].
 xi. CIL has taken initiative and is trying its best to get NABL
 [National Accreditation Board for Testing and Calibration Laboratories]
 accreditation for main laboratories of different subsidiary coal
 companies. One lab at MCL has been accredited by NABL in addition to
 the earlier one existing at WCL.
 3.5 Marketing of Coal
 Status of execution of Fuel Supply Agreements and performance of
 Supply of coal was made to various consumers including Power Sector
 under the applicable provisions of the New Coal Distribution Policy
 (NCDP). Due to the overall deficit in availability of coal considering
 the projected coal production from domestic sources and commitments
 made through signing of FSAs/issuance of Letter of Assurances (LOA)
 supplies under the FSAs has been pegged at various levels of
 commitments (trigger). Power sector being the major consuming sector
 having significant importance in the economy, supplies to power sector
 has been guided as per the government directives and polices.
 (i) For power stations commissioned on or before 31.03.2009, a quantity
 of 306 million tonnes had been considered to be supplied through
 bilateral legally enforceable Fuel Supply Agreements (FSA) with a
 trigger level of 90%. The total quantity covered under FSA against the
 allocation as on March''15 was 305 million tonnes.
 Apart from the above, 180 Letter of Assurances has been issued to power
 plants by subsidiary companies of CIL, as per the recommendations of
 various SLC (LT) meetings for a quantity of about 426.86 Million
 tonnes. Further as per Presidential Directives dated 16-4-2012 and
 dated 17-7- 2013 the list of Power Plants and aggregate capacity were
 revised. A total 173 TPPs were listed with an aggregate capacity of
 78535 MW. Till 31.3.2015, 161 FSAs have been signed with Power Plants
 for an aggregate capacity of 74275 MW. However, TPPs having capacity of
 57730 MW have furnished long-term Power Purchase Agreement (PPA) and
 qualify for commencement of coal supply subject to commissioning etc.
 After resolving issues with NTPC, NTPC has signed FSA for its power
 plants for plant capacity of 13510 MW both for its owned and Joint
 venture Plants.
 (ii) In addition, in terms of Presidential Directive dated 17th
 July''13, coal is being supplied to power houses of 4660 MW having no
 fuel linkage with CIL on best effort MoU basis on the condition that
 such supplies do not adversely affect the availability of coal for the
 identified plants of 78000 MW capacity.
 (iii) Out of 1208 valid linked units other than power and steel plants
 with eligible FSA quantity of 76.24 million tonnes, 762 units have
 operative FSAs for 50.92 million tonnes. FSAs of the existing consumers
 were signed in 2008.Tenure of these FSAs being 5 years; many of the
 FSAs were renewed.
 (iv) For supply of coal to SME sector, 8 million tonnes was earmarked
 by CIL for allocation to agencies nominated by the State Govt''s/
 UT''s. 14 states / UT''s had sent nomination of 18 state agencies for
 the year 2014-15 out of which 15 state agencies signed FSAs for 3.45
 million tonnes and drawing coal.
 (v) After implementation of NCDP, 417 LOAs were also issued to
 consumers of sponge iron, CPP and cement as per the recommendations of
 various SLC (LT) meetings for a quantity of 63.86 million tonnes per
 annum. Of these, 333 FSAs have been concluded till date for a quantity
 of 45.01 million tonnes per annum. Out of these, 226 FSAs are active as
 on date for a quantity of 28.03 million tonnes per annum.
 (vi) As per the provisions of FSA, CIL undertook import of coal for the
 power plants opted for taking the same through CIL during the 3rd and
 4th quarter of 2014-15. Out of the total quantity firmed by the power
 plants for about 5 LT, till March 2015,supply was made for 3.3 LT and
 balance supply was about to be completed.
 (vii) Under Forward e-Auction scheme during the year ended March''15,
 quantity allocated was 3.593 million tonnes as against 4.094 million
 tonnes allocated during the last year.  During the period under review,
 45.211 million tonnes of coal was allocated under spot e- auction to
 the successful bidders as against 58.125 million tonnes of coal
 allocated during the last year. The notional gain through Spot
 e-Auction over & above the notified price was 63.7% during 2014-15.
 3.6 Coal Beneficiation
 At present, CIL has a total coal washing capacity of 36.8 million
 tonnes per year (Mty) through 15 existing washeries, of which 12 are
 coking and 3 non coking with 23.30 Mty and 13.5 Mty capacity
 respectively. In addition to this, CIL plans to set up further 15
 washeries having state-of-the-art and innovative technologies in the
 field of coal beneficiation with an aggregate throughput capacity of
 112.6 Mty. Out of these, 6 are planned to wash coking coal with a
 cumulative capacity of 18.6 Mty, 3 of these being at various stages of
 construction and LOI for 2 more being in the offing. LOA/LOIs for 3 of
 the balance 9 non-coking coal washeries have been issued.
 4.5 Future Outlook
 CIL has envisaged a coal production of 908.10 Mt in the year 2019-20
 with a CAGR of 12.98 %. In 2015-16, the target of coal production was
 550.00 Mt with an annualized growth of about 11 %. In the terminal year
 of XII Plan (2016-17), the envisaged coal production is revised to
 597.60 Mt against 615.00 Mt originally projected in XII Plan document.
 The capital expenditure for the year 2015-16 has been projected at Rs.
 5990.50 crores. In addition there is also an ad-hoc provision of Rs. 500
 crores. for acquisition of coal assets abroad and development of coal
 blocks in Mozambique. In addition, company planned to invest Rs. 4150
 crores in various infrastructure projects during 2015-16.
 Population of Major Opencast Equipment (Heavy Earth Moving Machinery)
 as on 1.4.2015 and on 1.4.2014 along with their performance in terms of
 availability and utilisation expressed as a percentage of CMPDI norm is
 tabulated below:
 8.1 Preparation of Reports: As prioritized by subsidiary companies of
 Coal India Limited, preparation of Project Reports (PR) for new/
 expansion/re-organisation mines was carried out by CMPDI during the
 year 2014-15 for building an additional coal production capacity to the
 tune of 116 Mty. During the period, a total of 269 reports were
 prepared including 16 Geological Reports, 30 Project Reports, 174 Other
 Reports (includes 2 Master Plans of Coalfields and 3 Operational
 Further expert consultancy services were also provided in the field of
 Environmental Management and Monitoring, Remote Sensing, Energy Audit
 and Benchmarking (Diesel & Electrical) , Physico-mechanical tests on
 Rock and Coal Samples, Subsidence Studies, Strata Control,
 Non-Destructive Testing (NDT), Controlled Blasting & Vibration Studies
 and Explosive Utilisation, Ventilation/Gas Survey of UG mines, Mining
 Electronics, Petrography and Cleat Study on coal samples, Coal Core
 Processing & Analysis, Washability tests, Soil Erosion Study, Slope
 Stability Study, Effluent/Sewerage Treatment Plants, etc.
 Mining Projects: 49 coal mining projects are running behind the
 schedule due to the delay in acquisition of land, associated R&R issues
 in addition to the delay in obtaining forestry and environmental
 clearances. In addition, 33 projects are running behind the schedule
 due to lack of Railway Infrastructure facilities for coal evacuation,
 other problems such as delay or discontinuance of work by contractor,
 non participation in tender, law and order problems etc.
 Non Mining Projects
 Majority of 13 non mining projects are running behind the schedule due
 to discontinuance of work by contractor, law and order problem in
 addition to the delay in acquisition of land and associated problems of
 rehabilitation and grant of environmental & forest clearances.
 8.3 Projects Sanctioned (Costing Rs. 20 Crores & above)
 a) No advance action proposal has been sanctioned during the year
 b) Projects sanctioned by CIL Board.
 7 coal mining projects for an ultimate capacity of 73.42 Mty and a
 total capital investment of Rs. 7951.17 Crores have been sanctioned by
 CII Board during the year 2014-15
 8.5 Steps taken to Achieve One Billion Coal Production in 2019-20
 One Billion Tonne production essentially is a synergic effort with coal
 bearing states and railways to access the resources and speed up
 logistics for coal evacuation.
 Coal India has decided to put its best foot forward with the help of
 all concerned agencies and take its production into higher growth
 trajectory. Contribution from identified projects will be 908 Million
 Tonnes and identification of projects for the balance quantity is in
 Group wise Production from Projects
 Existing coal projects are envisaged to contribute about 165 Million
 Tonnes (MT), projects under implementation are likely to contribute 561
 MT. Future projects are planned to produce 182 MT during the year
 Contribution from Subsidiaries
 Projected contribution from MCL and SECL will be to the tune of 250 Mt
 and 240 Mt respectively during the year 2019-20. Production
 contribution from the subsidiary companies during the year 2019 - 20
 have been projected as under:-
 Eastern Coalfields Limited - 62 MTs;
 Bharat Coking Coal Limited - 53 MTs;
 Central Coalfields Limited - 133 MTs;
 Northern Coalfields Limited - 110 MTs;
 Western Coalfields Limited - 60 MTs;
 South Eastern Coalfields Limited - 240 MTs;
 Mahanadi Coalfields Limited - 250 MTs.
 Major Challenges
 The dream of providing 1 Billion Tonne of coal to the Nation will be
 achieved only through the concerted efforts of CIL, Railways and State
 Governments. Three critical railway lines, mechanization through latest
 technology, upgrading skills of employees, speedy acquisition of land,
 expeditious environmental and forest clearances and fast track state
 level clearances are crucial for realization of 1 Bt coal production by
 Key Strategies
 (I) Critical Railway Links - Collaboration with State Govt. & Railways
 There are a few coalfields in the country which have huge production
 potential but are bereft of rail linkages for evacuation of coal
 produced. Among these, 3 rail lines linked to CCL (Jharkhand), MCL
 (Odisha) and SECL (Chhattisgarh) are critical and expected to play a
 key role in evacuation of coal.
 To monitor and speed up the commissioning of these three rail links
 ''Special Purpose Vehicle'' (SPVs) have been formed in tripartite
 partnership among Ministry of Railways, Ministry of Coal and the
 respective State Governments. IRCON and RITES Limited will have a major
 role in developing and maintaining following three rail links and other
 rail dispatch logistics like railway sidings.
 (II) Technology Development
 (a) Exploration capacity is planned to be augmented with more use of
 hydrostatic drills, geophysical loggers, 2D/3D Seismic Survey
 Technology and Optimization of number of coring boreholes based on the
 complexity of geology of the block.
 (b) Introduction of high capacity equipment, Operator Independent Truck
 Dispatch Systems, Vehicle Tracking System using GPS/ GPRS, CHP and
 SILOS for faster loading and monitoring using laser scanners have been
 planned to augment coal production from opencast mines.
 (c) Introduction of Continuous Miner Technology on large scale, Long
 Wall Technology at selected places, Man Riding system in major mines
 and Use of Tele - monitoring techniques have been envisaged to increase
 production from underground mines.
 (III) International Collaboration - Mine Developers & Operators (MDO)
 A Model Contract Agreement has been approved by CIL Board and
 circulated to subsidiary companies for implementation. This will help
 infusion of new technology and efficiency in CIL coal mining projects.
 (IV) Role of HR
 HR division is charting out a plan of recruiting multi-disciplinary
 professional skill upgradation of existing employees and identifying
 areas of improvement etc.
 Other Improvement Areas
 (i) Coal Washing - A step towards quality improvement
 To make the product better quality, CIL has decided to bring in
 consistency in quality by setting up of 15 coal washeries of which 6
 are coking coal and 9 non coking coal with a total proposed washing
 capacity of 112.6 million tonnes / year.
 (ii) System Improvements
 Introduction of e-procurement of equipment and spares, e-tender of work
 and services, implementation of Coal Net, establishment of
 connectivity, revision of guidelines and manuals, use of GPS for
 monitoring operational efficiency in road transport of coal have been
 planned to improve the overall system.
 (i) CIL''s subsidiaries have undertaken the following measures,
 interalia to conserve energy:
 - CMPDIL has undertaken energy conservation studies in 2014-15 and
 conducted Diesel Audit & Benchmarking as well as Electrical Audit &
 Benchmarking in selected opencast mines situated in different
 subsidiaries of CIL by BEE accredited Energy Auditors. The study
 revealed that there is an aggregate saving potential of 18420 kilo
 litres / year in diesel consumption and 760 lakh units / year in
 electric power consumption and action has accordingly been taken in
 line with the recommendations of the above study.
 - Project-wise specific consumption of diesel is monitored compared
 to benchmarking for selected opencast projects (76) of different
 subsidiaries of CIL.
 - Power factor above 95% is maintained during 2014-15 by suitably
 placing power capacitors.
 - Energy efficient LEDs are widely used for better conservation of
 - Auto-timer switches for street lights are in use in mine premises,
 CHPs, residential areas etc. which further adds saving in power
 - Power supply systems have been re-organized in suitable places by
 laying cables through bore holes in UG mines to reduce power losses.
 - Various energy conservation measures like procurement of energy
 efficient lights and fittings, higher starred rating ACs, installation
 of energy meters / power factor meters / demand controllers etc. for
 monitoring and control of energy, elimination or reduction of stage
 pumping as far as practicable, energy conservation measures in HEMM
 etc. have been taken and general awareness propagated among all
 concerned for efficient use of energy.
 - Demand side management is done by improving load factor and
 limiting maximum demand wherever practicable by staggering avoidable
 load from peak hours to off-peak hours.
 (ii) In addition to the above, CIL is also pursuing use of alternative
 energy sources. Various steps have been taken for utilizing solar power
 as an alternate source of energy, some of which are as stated below:
 - Possible locations have been identified for installation of
 roof-top solar plants over service building, workshop, hospital,
 canteen, guest house etc. at different subsidiaries of CIL.
 - At present, one 2.016 MWP grid-connective solar power plant has
 been commissioned at MCL HQ premises on 13.10.2014.
 - A roof top solar plant (grid-connective) of 200 kwp capacity has
 been installed on 01.09.2014 in CMPDIL Campus, Ranchi.
 - One roof top grid-connective solar plant of 140 kwp capacity has
 been installed at CIL''s corporate office building at New Town,
 Rajarhat, Kolkata.
 The authorized share capital of the company as on 31.03.2015 was Rs.
 8904.18 crores, distributed between Equity and Non-cumulative
 redeemable preference shares as under:
 (i) 800,00,00,000 Equity Shares of Rs. 10/- each (Previous Year
 800,00,00,000 Equity Shares of Rs. 10/- each) Rs. 8000.00 crores
 (ii) 90,41,800 Non-cumulative 10% redeemable Preference Shares of Rs.
 1000/- each (Previous Year 90,41,800 Non-cumulative 10% Redeemable
 Preference Shares of Rs. 1000/- each) Rs. 904.18 crores
 Total Rs. 8904.18 crores
 Listing of shares of Coal India Limited in Stock Exchanges:
 Pursuant to divestment of 10% of total equity shares held by Hon''ble
 President of India (Govt. of India), to the public, the shares of Coal
 India Limited is listed in two major Stock Exchanges of India, viz.
 Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on and
 from 4th November, 2010.
 During F.Y. 2013-14, Govt. of India had further divested 0.35% of total
 Equity Shares equivalent to 22037834 number of equity shares by way of
 placement of such shares in Central Public Sector Exchange Traded Fund
 Further Divestment by Govt. of India through OFS:
 Govt. of India further divested 631636440 number of equity shares i.e.,
 10% of the total share capital, on 30.01.2015 by way of Offer For Sale
 (OFS) route through Stock Exchanges. Post such divestment, Govt. of
 India holds 79.65% of the total equity share capital as on 31.03.2015.
 Coal India is envisaged for foreign collaboration with a view to:-
 - Bring in proven and advanced technologies and management skills for
 exploiting UG and OC mines and coal preparation.
 - Exploration and exploitation of Methane from Coal bed, abandoned
 mine, ventilation air, shale gas, coal gasification etc.
 - Locating overseas countries interested in Joint Venture in the
 field of coal mining with special thrust on coking coal mining.
 The priority areas included acquisition of modern and high productive
 underground mining technology, introduction of high productive opencast
 mining technology, working in underground in difficult geological
 conditions, fire control and mine safety ,coal preparation, application
 of 3D seismic survey for exploration , extraction of coal bed methane,
 coal gasification, application of Geographical Information System,
 satellite surveillance, environmental control, overseas ventures in
 coal mining.
 CIL would endeavour to acquire suitable technology through
 international bidding. Bilateral cooperation may also be encouraged for
 locating availability of cost effective and latest technologies in the
 aforesaid areas. CIL, therefore, has been following both the routes.
 Following are the details of activities that took place with various
 countries during 2014-15.
 Indo-US Collaboration:
 Status of on-going projects under Indo-US CWG:
 a) Development of Coal Preparation Plant Simulator:
 The identified US consultant M/s Sharpe International LLC, USA (SI) was
 awarded the work in October 2009 for development of Coal Preparation
 Plant Simulator. Total work was split into 18 activities, out of which
 11 activities were completed and payment to the tune of 40% value had
 been released in line with the provision of the contract. Later in
 October 2013, the SI expressed their inability to complete the work.
 The US representatives were requested to take up the matter with M/s
 Sharpe for a meaningful conclusion of the project. The US side has
 advised to contact Mr. Carl Jacobson in this regard. The issue has been
 taken up with Mr. Carl Jacobson to obtain his willingness to complete
 the project in accordance with the existing contract.
 b) Cost Effective Technology for Beneficiation and Recovery of Fine
 The US DOE had identified Virginia Tech University (VTU) for
 establishing an efficient technique for beneficiation & dewatering of
 Indian coking coal mines through testing of coal samples in lab and
 pilot plants at VTU for identification of state-of-the-art technologies
 based on which a demonstration plant was to be installed in Sudamdih
 washery in BCCL. A joint project proposal was drawn and approved by CIL
 R&D Board in December''2010. The VTU, however, expressed its inability
 to sign an international agreement and as such the project could not be
 started.  During the 10th Indo-US CWG meeting in New Delhi on 10th
 March 2014, the US representatives were requested to take up the matter
 with VTU for meaningful conclusion of the project. The US side has
 advised to contact Dr. Roe Hoan Yoon of Virginia Tech for further
 discussion in this regard.  The issue has been taken up with Dr. Roe
 Hoan Yoon to obtain methodology for execution of the assignment.
 New Areas of Collaboration
 a) Underground Coal Gasification (UCG): UCG is one of the key areas
 under Indo-US collaboration. A project brief for capacity building in
 the field of UCG development has been sent to MoC for consideration
 under India-US Coal Working Group, for the development of UCG in CIL
 command area.  A demonstration project for commercialization is being
 contemplated under R&D effort by CMPDI/CIL. The project will be taken
 up subject to the competent approval.
 b) Planning large capacity opencast mines: National Energy Technology
 Laboratory (NETL), USA has been entrusted with the responsibility for
 identifying suitable US agencies for cooperation in this area. NETL has
 communicated to Norwest. As advised by the US side, Norwest Corporation
 and Art Sullivan, were contacted by email on 8th September 2014.
 Response from both was received. Preliminary information on the subject
 has been received from Art Sullivan, and further talks are in progress.
 CMPDI is in the process of preparing a proposal with Art Sullivan Mine
 Services, for jointly working on ''Mine Safety, Occupational Health
 and Risk Management'' in large opencast coal mines.
 c) Projects on sustainable mine closure activities and mining wasteland
 to be utilized as a source of livelihood for local community were
 proposed to be carried out with the help of the US agencies. For this
 purpose, a technical presentation was made by CMPDI on 10th March, 2014
 in Delhi and possible areas of cooperation were discussed. It was
 advised by the US Side to contact Norwest Corporation & Art Sullivan
 Mine services for further assistance. Response from Wanda I. Burget,
 VP, Environmental Services, Norwest Corporation was received vide their
 e-mail dated 18.09.2014. As desired, details provided to them by e-mail
 on 31st December 2014. Further, response from them was again received
 vide e-mail dated 08.01.2015. As desired by Norwest Corp, the area of
 co-operation were identified and communicated. Norwest Corp has been
 requested vide our e-mail dated 27.02.2015 for preparing a formal
 proposal with cost estimates.
 Indo-EU Collaboration
 Status of ongoing projects
 A proposal titled Introduction of a new underground mining
 technology at North-East Coalfields in Assam was put to Indo-EU
 Working Group on clean coal technology for consideration in 2012.  The
 feasibility study to design a suitable mining technology and operation
 was awarded to Spanish Consortium led by AITEMIN.  AITEMIN has already
 started their work since December 2013.  The members from Spanish
 Consortium visited Tipong UG mine of NEC, Assam during 10th - 14th
 February 2014. During the visit, they had detailed discussion with
 concerned CMPDI & NEC authorities and collected necessary
 data/information regarding the aforesaid work. The Feasibility Study
 Report, as reported by AITEMIN, has already been submitted to European
 Commission on 10th October.''14 according to the contract terms.
 However, the same is yet to be received at CMPDI.
 New Areas of Collaboration
 During 8th India-EU CWG meeting held in Chennai from 28th - 29th
 November''13, a presentation was made by CMPDI on reclamation
 practices, land management and utilization of mine voids for storage of
 mine water which is generally of good quality. Technical knowhow from
 EU was sought to bring back the post-mining land use pattern as
 existing before the mining and utilization of the same for income
 generation for the local community. A presentation on the requirement
 of the technical assistance was made by CMD, CMPDI during the 9th
 India-EU CWG meeting held in Germany from 10th - 11th September.''14.
 Further work to be undertaken on collaboration.
 Indo-Australian Collaboration
 VAM project under NCEF, CMPDI, on behalf of CIL, is contemplating to
 take up a project on mitigation and utilization of Ventilation Air
 Methane (VAM) at Moonidih, BCCL, with CSIRO, Australia under
 National Clean Energy Fund (NCEF) of Government of India.  A project
 proposal for implementation of the project is under consideration. The
 project will be taken up subject to competent approval of the
 Other activities through international cooperation
 a) CMM/CBM Clearinghouse
 India CMM/CBM Clearinghouse is a non-profit, non- governmental
 organization established under the aegis of Ministry of Coal, Govt. of
 India and United States Environmental Protection Agency (USEPA) with an
 aim to contribute to the commercial development of CMM/CBM in India.
 The clearinghouse was established at CMPDI, Ranchi in November, 2008
 with an objective to promote CMM/CBM industry in India. The
 clearinghouse functions under the aegis of Ministry of Coal (MoC), Govt
 of India and United States Environmental Protection Agency (USEPA).The
 term of the Clearinghouse is proposed to be extended for a further
 period of 3 years upto November, 2018.
 b) Research & Development Activities
 i) R&D Project on Green House Gas Recovery from coal mines and coal
 beds for conversion to Energy:
 A multi-organization, multi-nation international collaborative project
 with 12 participating organizations and 5 countries (India, China, UK,
 Slovenia, Slovakia) and funded by European Union Research Commission
 (EURC) is being pursued at Moonidih mine of CIL by CMPDI. The project
 duration is upto March, 2015.
 ii) R&D project on Assessment of Prospect of shale gas in Gondwana
 basin with special reference to CIL areas
 For assessing the potentiality of shale gas in Gondwana basin with
 reference to CIL areas, a project with M/s Advanced Resource
 International (ARI), USA has been completed in December, 2014.  Under
 R&D effort it is interpreted that Shale horizons in Jharia coalfield
 and East Bokaro coalfield qualify for Shale gas exploration as deeper
 zones contain more gas in its pore space because of higher confining
 pressures. Moreover, the same is supplemented by pyrolysis data of
 (A) Activities of Coal India Africana Limitada (CIAL), Mozambique.
 The prospecting licenses for coal, having numbers. 3450L & 3451L,
 covering a total area of 224 square kilometres were granted to CIAL, a
 wholly-owned subsidiary of CIL in Mozambique, in 2009. Various
 activities related to exploration of the allotted coal blocks
 undertaken in 2014- 15 are as follows:
 - Surveying for delineation of the coal blocks, borehole collars have
 been completed.
 - Completion of Exploration drilling programme in the allocated 2
 coal blocks.
 - 49,541 Mtrs of exploration drilling has so far been completed, of
 which 10088 Mtrs and 31,029 Mtrs of drilling in the 1st & 2nd stages
 was completed in 2013-14 and 8,423.67 Mtrs in 20 boreholes under 3rd
 stage was completed in 2014-15.
 - Work under Geo-physical logging programme for 2,387.02 Mtrs in 4
 boreholes has been completed.
 - Core sample for a total of 98 boreholes have been tested in various
 laboratories in India. Analysis results have been received and are
 being examined.
 - The existing exploration licenses for two coal blocks in Mozambique
 have been extended by Mozambican Government for another 5 years till
 August 2019.
 - Interim Geological Report has been prepared by CMPDIL. The final
 Geological Report of these two allocated coal blocks in Mozambique is
 under preparation.
 (B) Acquisition of coal assets abroad through global expression of
 - Pursuant to adoption of the government policy on acquisition of raw
 material abroad by CPSEs by Board of Directors of CIL, a global
 Expression of Interest was floated on 27th February 2013 inviting
 offers from owners of coal assets abroad or their representatives and
 also from investment bankers for acquiring stakes in coal assets.
 - Several proposals have been received till 31st March 2015 in
 response to the EOI.
 - Some of the proposals had been short-listed for in- house due
 diligence. Technical review in respect of the short-listed proposals
 were presented to the senior management. CIL Board has desired a report
 on the regulatory framework in the targeted countries.
 - CIL has appointed a legal consultant to advise CIL on the specific
 aspect of regulations and rules related to investment in the coal
 mining sector in the targeted countries.CIL has at present has
 initiated discussions in targeted countries on a possible G2G basis.
 CIL has been observing the falling international price (FOB) of thermal
 coal and studying its effect on the valuation model of the prospective
 coal assets.
 (C) Setting up of Apex Planning Organisation (APO) & Apex Training
 Setting up of APO & ATO in Mozambique is a project of the Ministry of
 External Affairs(MEA),Government of India and to be funded by GoI. Coal
 India Limited was nominated as the nodal agency for the execution of
 the project.
 Cost Estimate for the project updated in 2013 indicated an escalation
 of cost. Ministry of External Affairs, GoI has indicated that its
 financial commitment for setting up of APO & ATO in Mozambique would be
 limited to the initial estimate prepared in 2008. Further it has
 requested CIL to explore the avenue for funding of the balance amount.
 CIL Board has considered the request of MEA and has decided that the
 issue of funding of the balance amount for the APO & ATO would be
 addressed once the final results of exploration work in the allocated
 coal blocks in Mozambique is completed. Meanwhile CIL has suggested
 that the funding for the balance amount for this project could be
 arranged from other Indian Public Sector companies having active
 commercial interest in Mozambique.
 The Master Plan for dealing with fire, subsidence and rehabilitation in
 the lease hold of Bharat Coking Coal Limited (BCCL) and Eastern
 Coalfields Limited ( ECL) was approved on 12th August 2009 by the Govt.
 of India with an estimated investment of Rs. 7,112.11 crores for Jharia
 Coalfields and Rs. 2,661.73 crores for Raniganj Coalfields.
 Implementation period has been delineated as 10 years.
 During the FY 2014-15, High Powered Central Committee meeting was held
 on 26/08/2014 under the chairmanship of the Secretary (Coal),MoC to
 review the activities of implementation of Master Plan.
 Jharia Rehabilitation and Development Authority (JRDA) is the
 implementing agency for rehabilitation of non- BCCL people under the
 Master Plan whereas Asansol Durgapur Development Authority (ADDA) a
 state Govt.  organization has been identified as implementing agency
 for Rehabilitation of Non-ECL houses.
 A. Summarized Status of Implementations of Raniganj Master Plan
 Demographic Survey work has been completed for all 126 sites. The final
 list has already been published which contains 44598 households. 43087
 numbers of photo identity card (PIC) were distributed out of 44598
 Revalidation of land acquisition proposal at Bonjemehari for 1300 Acres
 of land in Salanpur block and at Gourangdih for 2300 Acres of land in
 Barabani block is under consideration of West Bengal State Govt.
 ECL has given ''No Objection'' for rehabilitation in the
 available vested land at mouza Namokesia, (31.42 Acres) at Salanpur
 Block which is non-coal bearing area and mouza Bijoynagar (26 Acres )
 at Jamuria Block where coal is available at more than 600 mtrs depth.
 It has been informed by ADDA that the above two sites are made
 available for rehabilitation purpose by State Govt and barbed wire
 fencing has been started at the site Bijoynagar.
 Further ECL has given NOC for vested land in Kulti,Barabani and Jamuria
 blocks where coal is of very low grade or coal is found at a depth of
 more than 600 metres. ECL has issued NOC for a total area of 236.42
 acres of vested land for rehabilitation purpose to ADDA.
 i) Diversion of Railway line from unstable location:
 Andal-Sitarampur Railway line of Salanpur area- As regard to diversion
 of Andal-Sitarampur Railway line of Salanpur Area, the work has been
 awarded to M/S
 RITES for preparation of Feasibility Study Report (FSR) and Detailed
 Project Report (DPR). Survey work of around 26 km track line has been
 completed and M/s RITES is finalizing the report in consultation with
 Railway authority.
 ii) Diversion of NH-2 and District Board (DB) Road:
 ECL has pointed out that even after repeated communication with
 National Highway Authority of India (NHAI) at different levels for
 diversion of National Highway (NH-2), response from NHAI is not very
 encouraging and the issue has been referred to Ministry of Coal for
 taking up the issue with Ministry of Surface Transportation.
 Detailed Project Report diversion of DB road at Salanpur Area and
 Satgram area and land acquisition proposals are awaiting State
 Government''s approval.
 iii) Diversion of IOCL pipeline:
 For diversion of Indian Oil Corporation Limited (IOCL) pipeline
 National Institute of Rock Mechanics (NIRM),
 Bangalore has conducted the survey work to assess the stability of
 pipeline. NIRM submitted survey report and subsequently NIRM was
 requested to conduct 2nd tier geophysical survey to assess the
 stability of 750 metres most vulnerable length of pipeline.  NIRM have
 completed the 2nd phase of survey and submitted their report. NIRM will
 submit their final report after joint meeting with IOCL.
 B. Summarized Status of Implementations of Jharia Master Plan
 Out of total of 595 nos. of fire affected / subsidence prone sites /
 areas required to be surveyed, CIMFR, ISM and Whiz Mantra have
 completed demographic / socio-economic survey at 569 sites in which
 84497 families have been identified. Photo Identity Cards are
 distributed for 42652 families.
 Status of land acquisition by JRDA for rehabilitation sites
 About 1105 ha. land (say 2730 Acres) would be required for resettlement
 of non-BCCL families.
 - Proposals for acquisition of 352.27 acres of Raiyati land have been
 sent to DLAO & 176.23 acres to the Addl. Collector Dhanbad by JRDA.
 - Delivery for possession of Raiyati land for 120.82 acres at Lipania
 and 7.99 acres at Dhokra has been taken over by JRDA from DLAO, Dhanbad
 on 28.02.13. The physical possession of land is yet to be taken.
 - Delivery for possession of Raiyati land for 5.12 acres at
 Duhatand-, 2.23 acres at Manaitand and 4.76 acres at Dhanbad has been
 taken over by JRDA from DLAO, Dhanbad on 15.04.13.
 - NOC of 86.44 acres of vacant land in Bhuli Township and 849.68
 acres of non-coal bearing land in and around Belgoria Township
 belonging to BCCL has been given by MoC which has been communicated to
 JRDA along with all the required mouza plans, for developing new
 Townships by JRDA.
 Status of BCCL houses under Master Plan For this purpose, 344 houses &
 1152 houses have been built in non-coal bearing zone & Families from
 fire & subsidence places have been shifted to these houses.
 Construction of 4080 triple storied quarters (340 Blocks each of 12
 units) is in progress. Construction of 4020 triple storied quarters
 (335 Blocks each of 12 units) is awarded.  Tender for construction of
 2248 units (B,C&D type) triple storied quarters and construction of
 4008 units triple storied miners quarters with R.C.C. framed structure
 is in process .  Status of Non-BCCL houses (54159 nos.) under Master
 Plan 2352 houses have been constructed in Belgoria rehabilitation
 Township ''''JhariaVihar in which 1169 families have shifted till
 Status of Fire Schemes
 Reduction in Fire Area:
 - The coal mine fire survey/ study was instituted by BCCL through
 National Remote Sensing Centre (NRSC), ISRO, Deptt. of Space, Hyderabad
 in Aug., 2013 for delineation of surface coal fires in Jharia
 Coalfield. NRSC has submitted their report in April'' 2014, in which
 they have concluded that the present fire area in the coalfield is only
 2.18 which included both over burden dump fire and active fire.
 NRSC has deduced these findings from the State of Art, Satellite based
 - Further NRSC has conducted delineation of land subsidence in Jharia
 Coalfield, Jharkhand as R & D component using space based differential
 interferometric technique. The final report is submitted in
 Sept''2014.From time series DInSAR observation and field verification,
 the land subsidence map of Jharia coalfield (JCF)were generated for
 2007-2010 time period. 70 areas were detected which are prone to land
 subsidence/ subsidence affected from time series DInSAR observations
 due to mining activities, coal fire or by the combination of both. Thus
 the subsidence map includes areas which are under ongoing subsidence at
 present & subsided during observation. Out of 70 sites, 27 sites are
 affected with fire and thus fire induced subsidence.
 Disbursement of total fund by CIL for implementation of Master Plan
 after approval of Master Plan
 BCCL till March, 2015 : Rs. 511.85 crores
 ECL till March, 2015 : Rs. 160.79 crores.
 16. Environmental Management
 16.1 Environmental Impact Assessment (EIA)/Environmental Management
 Plan (EMP)
 38 environmental clearances for 107.36 Mty capacity were obtained from
 MoEF for different projects/Group of Mines of CIL during the year
 16.2 Pollution Control Measures and their Efficacy
 Measures are being taken to ensure that mining and coal beneficiation
 operations have a minimum impact on the surrounding air quality, water
 quality, noise level and soil quality, hydro-geology, land use pattern
 and nearby population.
 Technical and biological reclamation of mined out areas and 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 pollution control
 measures and for taking corrective actions as required.
 16.3 ISO 14001 Certification
 The implementation, certification and re-certification of different
 units of CIL against ISO:14001 (Environmental
 Management System) is continuing. As on 31.03.2015, 51 units and two
 companies (MCL & NCL) are certified under ISO:14001 standard.
 With the success of a companywide Integrated Management System (IMS) in
 MCL & NCL, the implementation of IMS was started for ECL, CCL & BCCL.
 It is expected that by April, 2016 ECL, BCCL and CCL would be able to
 get certification for companywide IMS which includes ISO:14001.
 16.4 Monitoring of land reclamation of OC mines through remote sensing
 Satellite surveillance system has been introduced for land reclamation
 monitoring of all the opencast coal mines for compliance of MoEF
 stipulations as well as for progressive mine closure monitoring. So far
 land reclamation monitoring based on high resolution satellite data,
 have been completed in respect of 50 opencast projects having more than
 5 million cum.  production capacity (Coal OB) and 36 opencast projects
 having less than 5 million cum.  production capacity (Coal OB).
 Vegetation cover mapping of seven coalfields viz. Rajmahal, Raniganj,
 Ib-Valley, Mand-Raigarh, Sohagpur, Pench- Kanhan and Umrer coalfields
 based on satellite data have been completed during the year 2014-15 for
 assessing the regional impact of coal mining on land use / vegetation
 cover in the span of 3 years for initiating required remedial measures,
 if any.
 16.5 Resettlement & Rehabilitation Policy of CIL
 With changing aspirations of Project Affected Persons (PAPs) and for
 faster acquisition of land, Resettlement & Rehabilitation Policy of CIL
 was revised in 2012 making it liberal and PAP friendly with more
 flexibility to the Board of Subsidiary Companies. .
 The Policy provides for conducting baseline socio- economic survey to
 identify PAPs enlisted to receive R&R benefits as well as to formulate
 Rehabilitation Action Plan (RAP) in consultation with PAPs and State
 The R&R Policy of Coal India Ltd provides for payment of land
 compensation and solatium, employment or lump sum monetary compensation
 and annuity, compensation for home-stead, lump sum payment in lieu of
 alternate house site, subsistence allowance to each displaced family
 16.6 Mine Closure Plans
 In terms of the revised guidelines issued by Ministry of Coal (MoC) in
 2013, CMPDI has prepared 7 mine closure plans for CIL mines during the
 year. Quick comments on 31 mine closure plans for coal blocks sent by
 MOC were also prepared and sent to MoC during the year.
 17.1 Collaborative development of CBM prospects in Jharia & Raniganj
 coalfields by the consortium of CIL & ONGC.
 Two CBM blocks, namely Raniganj North CBM block in Raniganj Coalfield
 and Jharia CBM block in Jharia coalfield, were allotted in 2002 to the
 consortium of ONGC & CIL for commercial development of CBM. CMPDI is
 implementing the projects on behalf of CIL. ONGC is the Operator for
 both the CBM blocks and carrying out the jobs as per contractual
 agreement with the Govt. of India.
 The FDP for both the CBM Blocks were approved by Govt.  of India in
 July 2013. However till date, in the absence of Petroleum Mining Lease
 (PEL) and Environmental clearance, the actualization of FDPs could not
 take place.
 17.2 CBM and Shale gas related studies under Promotional Exploration
 during XII Plan
 17.2.1 CBM related studies:
 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 (XII Plan period)
 and Promotional Regional Exploration (PRE) funding. For the plan
 period, studies have been completed for twenty four (24) boreholes.
 During the year 2014-15, following three reports based on CBM related
 studies have also been submitted:
 a) Dipside of Garjanbahal block, IB Valley Coalfield,
 b) Bhalumuda block, Mand-Raigarh Coalfield.
 c) Mandwa block, Bander Coalfield.
 17.2.2 Shale gas related studies:
 A study related to ''Assessment of Shale Gas-in-Place Resource of
 Indian Coalfields/Lignite fields'' through boreholes being drilled
 under promotional exploration (XII Plan period) has been taken up under
 PRE funding of Ministry of Coal.
 Shale gas study has been planned to be carried out in 25 boreholes
 during XII plan period. Out of these, so far, the study has been
 completed in respect of 15 boreholes including 5 bore holes taken up
 for study during 2014-15.
 17.3 Commercial development of Coal Mine Methane (CMM)
 Mechanism of operationalization of commercial development of CMM within
 CIL coal mining areas is under consideration at Government level. A
 formal communication in this regard is awaited. Further activities will
 be taken up for development and exploitation of CMM after formal
 Mechanism on commercial development of UCG is under consideration at
 Government level. Global tendering for selection of Developer for
 Commercial Development of Underground Coal Gasification (UCG) in
 Kaitha Block of Central Coalfields Limited (CCL) and Thesgora C
 Block of Western Coalfields Limited (WCL) is under consideration.
 19.1 Projects on Coalbed Methane
 19.1.1 S&T Project on CBM Reserve Estimation for Indian
 coalfields S&T project on CBM Reserve Estimation for Indian
 coalfields at a cost of Rs. 20.70 Crores has been approved under EoI
 of Coal S&T project.  IIEST/BESU, Shibpur is the principal implementing
 agency and CMPDI, Ranchi; TCE, Kolkata & NGRI, Hyderabad are sub
 implementing agencies in this project. The project is of 3 years
 duration with effect from 24th March, 2014. Work is in progress as per
 the approved project in South Karanpura Coalfield.
 19.1.2 CIL R&D project titled Studies on shrinkage swelling
 characteristics of some Indian coals to ascertain recoverability of CBM
 from deepseated coal resources.
 CIL R&D project titled Studies on shrinkage swelling characteristics
 of some Indian coal to ascertain recoverability of CBM from deep seated
 coal resources has been completed as per schedule. The project
 commenced on 1st March, 2013 and its completion report submitted on
 27th Feb, 2015.
 19.1.3 EU funded Research Project titled Greenhouse Gas Recovery
 from Coal Mines and unmineable Coal beds and conservation of Energy
 CMPDI is one of the participating organizations from India in the
 multi-national/multi-organization (12 partners from 5 countries)
 collaborative project titled Greenhouse Gas Recovery from Coal Mines
 and un-mineable Coal beds and conservation of Energy which has been
 approved under the partial funding scheme of European Union Research
 Commission for a period of 42 months.
 Field desorption study in two horizontal in-seam boreholes at Moonidih
 mine has been completed. CMPDI has completed its job and the integrated
 report is under finalization at Imperial College of Mining, UK.
 19.2 Projects on Shale Gas
 19.2.1 CIL R&D Project titled Assessment of prospect of shale gas in
 Gondwana basin with specific reference to CIL areas
 CIL R&D project titled Assessment of prospects of shale gas in
 Gondwana basin with special reference to CIL areas has been
 completed. Total Organic Carbon Analyzer and Rock Eval Analyzer are
 commissioned at CBM Lab, CMPDI, Ranchi. Sub-implementing agency ARI
 (USA) has made simulation and assessment of Shale gas potentiality in
 study areas of Jharia and East Bokaro Coalfields. The assessment report
 was presented in CIL R&D Apex Committee Meeting held on 24th December,
 19.2.2 S&T Project titled Shale gas potentiality evaluation of
 Damodar basin of India
 S&T project on Shale gas potentiality of Damodar basin of India
 with the project cost of Rs. 16.87 crore has been approved under S&T plan
 of Ministry of Coal (MoC). SSRC has approved the additional S&T Grant
 of Rs. 3.51 crore.  The total approved project cost is now Rs. 20.38 crore.
 The project is under implementation with the objective to evaluate
 Damodar basin for their shale gas potentiality through integrated
 geophysical, geological, geo-chemical and petro-physical
 CMPDI has substantially improved the capacity of drilling during XI &
 XII plan period. 39 new Mechanical drills & 4 Hi-Tech Hydrostatic
 drills have been procured since 2008- 09, out of which 10 have been
 deployed as additional drills and 33 as replacement drills In addition
 to this, order for 8 Hi-Tech Hydrostatic drills have been placed in
 2014-15, out of which, 3 drills have been received and deployed till
 20.1 Drilling Performance in 2014-15
 CMPDI deployed its departmental resources for detailed exploration of
 CIL/Non-CIL blocks whereas State Govts. of MP and Odisha also carried
 out exploration in CIL blocks only. Besides, eight other contractual
 agencies have also been engaged for detailed drilling/exploration in
 CIL/Non- CIL blocks. A total of 140 to 160 drills were deployed in
 2014-15, out of which, 57 to 61 were departmental drills.
 As against the achievement of 2.09 lakh metre in 2007-08, CMPDI has
 achieved 6.97 lakh meter in 2013-14 and about 8.29 lakh meter in
 2014-15 through departmental resources and outsourcing.
 Apart from it, CMPDI continued the technical supervision of Promotional
 Exploration work undertaken by MECL, and DGM (Nagaland) in Coal Sector
 on behalf of MoC. A total of 1.40 lakh meter of promotional drilling
 has been carried out in Coal (0.71 lakh metre) & Lignite (0.69 lakh
 meter) during 2014-15.
 In 2014-15, CMPDI and its contractual agencies took up exploratory
 drilling in 93 blocks/mines of 22 coalfields situated in 6 States. Out
 of 93 blocks/mines, 30 were Non- CIL/Captive blocks and 63 CIL
 blocks/mines. Departmental drills of CMPDI took up exploratory drilling
 in 57 blocks/ mines whereas contractual agencies drilled in 36 blocks/
 Due to non-availability of forest clearance, work is stopped in 11
 blocks. Due to lack of forest clearance and adverse law & order, about
 3.67 lakh metre of drilling could not be carried out in departmental
 and outsourced blocks in 2014- 15.
 20.2 Geological Reports:
 In 2014-15, 16 Geological Reports were prepared on the basis of
 detailed exploration conducted in previous years. In addition, 8
 Revised Geological Reports were also prepared. The prepared Geological
 Reports have brought about 3.6 Billion Tonnes of additional coal
 resources under ''Proved'' category.
 Under Promotional Exploration Programme, GSI and MECL have submitted 13
 Geological Reports on coal blocks estimating about 4.0 Billion Tonnes
 of coal resources, in ''Indicated'' & Inferred categories, above the
 specified thickness.
 20.3 Hydrogeology
 Hydro-geological studies of a number of mining projects/ mines were
 taken up for preparation of ''Groundwater Clearance Application'' for
 CGWA approval and EMP clearance. Hydro geological studies for 31 mining
 projects/ mines/cluster of mines in ECL, BCCL, CCL, WCL, SECL NCL and
 MCL were completed during 2014-15.
 CMPDI is carrying out groundwater monitoring of MOEF cleared projects
 viz. 65 mines of WCL area and 15 Cluster of mines in BCCL area. Water
 level monitoring in other areas of ECL, CCL, SECL, NCL and MCL are also
 in progress.
 20.4 Geophysical survey
 Geophysical Logging: During the year 2014-15, a total of 2,34,614 depth
 meter of geophysical logging has been carried out in CIL and Non-CIL
 projects with multi parametric geophysical logging equipment.
 Surface Geophysical Surveys: A total of 311 line Km of resistivity
 profiling, 121 nos. of Vertical Electrical Sounding (VES) and 6509 nos.
 of stations of magnetic surveys has been carried out in 2014-15.
 A total of 21 geophysical reports have been submitted during the year
 2014-15, including 10 reports on geophysical logging, 2 on resistivity
 survey, 2 on magnetic survey, 1 on HRSS survey and 6 on ground water
 During the year 2014-15, 29 consultancy jobs were done by CMPDI for 22
 organizations outside CIL. Some of the major clients/organisations are
 Neyveli Lignite Corporation Limited, MOIL Limited, National Thermal
 Power Corporation, Steel Authority of India Limited, National Aluminium
 Company Limited, Damodar Valley Corporation, Chhattisgarh Mineral
 Development Corporation, Mahan Coal Limited, Karnataka Power
 Corporation Limited, etc.
 Presently, 26 outside consultancy jobs are being executed by CMPDI for
 16 organizations.
 22.1 R&D Projects under ST 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 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.
 22.2 Physical performance
 During 2014-15, 3 projects have been completed by various agencies. The
 status of Coal S&T projects during 2014-15 is as under:
 Following new S&T projects were approved during 2014-15:
 1. Sustainable livelihood activities on reclaimed opencast coal mines:
 a technology enabled integrated approach in Indian coal sector- TERI /
 TERI University, New Delhi, MCL & CMPDI, Ranchi.
 2. Assessment of mine water environment and development of suitable and
 cost effective mine void aqua eco-system for promoting fish culture in
 abandoned coal quarries of Coal India Limited- BAU, Ranchi & CMPDI,
 3. Assessment of horizontal stress fields in deeper horizons and
 development of roof hazards maps of coal resources in SCCL command area
 - SCCL, Kothagudem and NIRM, Kolar.
 Following Coal S&T projects were completed during 2014-15:
 1. Development of Self Advancing (Mobile) Goaf Edge Supports (SAGES)
 for depillaring operations in underground coal mines.
 2. Development of software for prediction of subsidence by 3D numerical
 modeling for SCCL mines.
 3. Development of customized organic coatings for corrosion protection
 of special mining equipment at Neyveli Lignite mines.
 22.3 Financial Status
 Budget provision vis-a-vis actual fund disbursements during the period
 are given below:
 22.4 CIL R&D Projects
 For in-house R&D work of CIL, R&D Board headed by Chairman, CIL is also
 So far, 73 projects have been taken up with the funds of CIL R&D Board,
 out of which 54 projects have been completed till March, 2015.
 2. An integrated geo-physical approach for tectonic study in Moher main
 coal basin of Singrauli coalfield using 3D inverse modeling of Gravity,
 Magnetic and AMT data-ISM, Dhanbad and CMPDI(Hq), Ranchi.
 Following R&D projects were completed during 2014-15:
 1. Assessment of prospect of shale gas in Gondwana basin with special
 reference to CIL areas.
 2. Studies on determination of free silica (a-Quartz) content in
 respirable air borne dust in coal mines and preparation of data bank of
 free silica and other minerals present in dust as well as in coal.
 3. Indigenous development of Integrated Dumper Collision Avoidance
 system for opencast mines.
 4. Studies on shrinkage swelling characteristics of some Indian coals
 to ascertain recoverability of CBM from deep seated coal and shale
 5. Research and development on efficient energy management pilot study
 and action plan.
 CIL and its subsidiaries are making continuous efforts to up- date
 communication and IT solutions. To increase transparency and optimal
 utilization of resources for customer and investor satisfaction, the
 following key initiatives have been undertaken:
 1. GPS based Operator Independent Truck Dispatch System (OITDS) with
 high speed Data and Voice communication is implemented in all eleven
 Opencast projects to optimize operation of HEMM to enhance production
 and productivity of the mine.
 2. An ambitious plan to commission GPS/GPRS based Vehicle Tracking
 System across all major mines of Coal India has been taken up and the
 same is at different stages of completion at different subsidiaries.
 3. E-auction of coal, e-procurement of goods and services are
 operational through service provider of CIL. e-payment to employees and
 vendors, e-filing of grievances is in operation to embark upon the
 business process through IT initiatives.
 4. In order to improve coal dispatch, actions have been taken to
 connect all weighbridges with Central Server of respective
 5. Corporate Mail Messaging System is in place and enhancement of Mail
 Messaging System for CIL and its subsidiaries for ultimate capacity of
 19400 users is under process to provide corporate mail for executives
 of CIL and subsidiaries.
 6. In order to meet the demanding business process, state- of the art
 IP based EPABX with support of convergent technology for voice and
 data, Radio communication System and UG communication system at
 different locations of Coal India and its subsidiary companies are
 7. For enhancing the efficiency of official works, mobile telephone
 connections under CUG scheme to all executives is in place at CIL HQ
 and all its subsidiaries, except at WCL, where it will be implemented
 shortly. High speed Data cards and Broadband connections are provided
 for internet connectivity.
 8. The Web Portal of Coal India has been established in English and
 Hindi with enhanced look and feel encompassing the features like
 Employee Portal, Tender publication, On-line grievance management,
 Investor center, Customer corner, Vigilance etc. The portal also
 facilitates for receiving on-line applications for recruitment of MTs,
 link to E-procurement and E-auction.
 9. Multi Protocol Layered Switching (MPLS) based Video Conferencing
 between CIL, Subsidiaries, CIL office, Scope Complex and MoC for
 enhancement of decision making process for better production and
 productivity has been successfully implemented.
 10. At New building of corporate office of Coal India Limited all
 modern communication facilities have been provided for smooth &
 efficient functioning.
 11. Performance evaluation of all executives is done through web
 enabled system.
 12. Annual Property Return of all executives is recorded through web
 enabled system.
 13. The subsidiaries have Coal Net and other Information systems in
 place for accounting, finance, payroll, material management and other
 business functions.
 14. Electronic Surveillance through CCTV at Weighbridges has been taken
 up and is under the process of completion at different subsidiaries.
 24.1 : Safety Policy of CIL: Safety is always given a prime importance
 in the operations of CIL as embodied in its mission statement. CIL has
 formulated a well-defined safety policy for ensuring safety in mines,
 and implementation of the same is closely monitored at several levels.
 1) Operations and systems will be planned and designed to eliminate or
 materially reduce mining hazards;
 2) Implement Statutory Rules and Regulations and strenuous efforts made
 for achieving superior standards of safety;
 3) To bring about improvement in working conditions by suitable changes
 in technology;
 4) Provide material and monetary resources needed for the smooth and
 efficient execution of safety plans;
 5) Deploy safety personnel for accident prevention work;
 6) Organize appropriate forums with employees'' representatives for
 joint consultations on safety matters and secure their motivation and
 commitment in safety management;
 7) Prepare annual Safety Plan and long term Safety Plan at the
 beginning of every calendar year, unit-wise and for the company, for
 improved safety in operations as per the prevailing geo-mining
 conditions to prepare the units for onset of monsoon, to fulfill
 implementation of decisions taken by Committee on Safety in Mines and
 Safety Conferences and to take measures for overcoming accident
 proneness as may be reflected through study of accident analysis,
 keeping priority in sensitive areas of roof-falls, haulage, explosives,
 machinery etc.
 8) Set up a frame work for execution of Safety Policy and Plans through
 General Managers of Areas, Agents, Managers and other safety personnel
 of the units;
 9) Multi-level monitoring of the implementation of the Safety Plans
 through Internal Safety Organization at the Company Headquarters and
 Area Safety Officers at area level;
 10) All senior executives at all levels of management will continue to
 inculcate a safety consciousness and develop involvement in practicing
 safety towards accident prevention in their functioning;
 11) Institute continuous education, training and retraining of all
 employees with the emphasis laid on development of safety oriented
 12) Continue efforts to better living conditions and help all employees
 both inside and outside the mines.
 To implement CIL Safety Policy, the following are provided:
 1. Provision of adequate funds.
 2. Deployment of adequate manpower exclusively engaged for safety jobs.
 3. Support of scientific planning and R&D activities made available
 through in-house expertise of CMPDIL and in collaboration with other
 scientific agencies and reputed educational institutes.
 4. A well-structured and multi-disciplinary Internal Safety
 Organization (ISO) established in all the subsidiaries of CIL to
 monitor implementation of CIL''s Safety Policy.
 24.2 : Accident Statistics
 Accidents statistics is the indicator of safety status. Over the years,
 safety performance in terms of accidents has improved significantly.
 This improvement in safety is attributed to the following factors:
 - Collective commitment and synergies shown by the management and
 - Use of state-of-the-art technology in the field of mining methods,
 machineries and safety monitoring mechanism.
 - Continuous improvement in knowledge and skill of our workforce
 through imparting quality training and relentless safety awareness
 - Constant supervision and assistance from various quarters.
 Salient features of continuous and sustained improvement in CIL''s
 safety performance
 1. The 5 yearly average fatalities since the inception of the Company
 in the year 1975 have shown a consistent reducing trend over a period
 of time, as is evident from the graph given below
 3. The 5 yearly average serious injuries since the inception of the
 Company upto 2014 has also shown a consistent reducing trend over a
 period of time as is evident from the graph below:
 Note: Accident Statistics are maintained calendar year wise in
 conformity with DGMS and figures for 2014 are subject to reconciliation
 with DGMS
 4. The 5 yearly average serious injuries has reduced more sharply than
 fatalities in the same time frame. As serious injuries are the
 precursor of fatal accidents and mine disaster, it is the indicator of
 improvement in safety standards in our mines as whole.
 Details of Accident Statistics in 2014 vis-a-vis 2013
 During 2014, there were 44 fatal accidents and 46 fatalities compared
 to 55 and 59 respectively, in 2013. Thus, the numbers of fatal
 accidents and fatalities in 2014, compared to 2013 have reduced by 20%
 & 22% respectively, which are the lowest since the Company''s
 inception in 1975. The serious accidents and serious injuries in 2014
 compared to 2013 have reduced to 183 & 186 from 196 & 200 respectively,
 which are the lowest since the Company''s inception in 1975.
 24.3 : Major Activities for Safety & Rescue Division of CIL
 1. Inspection of mines to review safety status & follow up action
 2. Prima-facie fact finding enquiry into fatal accidents and major
 incidences such as mine fire, subsidence, in-rush of water, slope
 failure, explosion etc.
 3. Organizing meeting of CIL Safety Board and monitoring
 recommendations / suggestions made during the meeting.
 4. Organizing meeting of National Dust Prevention Committee (NDPC) and
 monitoring recommendations / suggestions of NDPC.
 5. Framing internal technical circulars / guidelines related to safety
 issues and monitoring implementation thereof.
 6. Maintenance of accidents / major incidents statistics database.
 7. Publication of Safety Bulletin for disseminating and sharing
 knowledge in order to promote safety awareness and inculcate better
 safety culture.
 8. Framing reply to different coal mine safety related parliamentary
 questions including queries raised by different standing committees
 such as standing committee on steel & coal, standing committee on
 labour as well as questions raised by COPU, MOC, CA&G and VIPs.
 9. Monitoring safety related R&D activities in CIL.
 10. Imparting specialized training by SIMTARS accredited trainers to
 unit level and Area level executives who are directly engaged in
 ensuring safety in mine.
 24.4 Actions taken for improvement in Safety in Mines undertaken in
 Safety Awareness Programme:
 - Special safety drives were conducted periodically to assess the
 level of compliance of safety norms in each mine.
 - Annual safety fortnight / week is also conducted every year.
 - Constant safety awareness programme is conducted in every mine for
 increasing safety awareness amongst the grass root level workmen for
 ensuring compliance of safety norms. This is done with the help of :
 a) Safety talks & oaths at the beginning of the shift.
 b) Safety slogans and signages at conspicuous places.
 c) Circulation of safe operating procedures for every operation and
 activity to all concerned.
 d) Animation films on safety issues.
 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, 14 Rescue
 Rooms-with-Refresher Training facilities and 17 Rescue Rooms in CIL.
 26. Safety Monitoring Agencies in CIL: The implementation and
 monitoring of safety norms stipulated as per statute are being done on
 constant basis both by the line management as well as by ISO officials.
 Apart from the above, there are several other agencies for monitoring
 safety, these are as under:
 At Mine Level
 - Workman inspectors: as per Mines Rule-1955
 - Safety Committee: constituted as per Mines Rule-1955
 At Area Level
 - Bipartite/Tripartite Safety Committee Meeting
 - Safety Officers'' Coordination Meeting
 - Bipartite/Tripartite safety Committee Meeting
 At Subsidiary HQ Level
 - Area Safety Officers'' Coordination Meeting
 - Inspections by ISO Officials
 - CIL Safety Board
 At CIL (HQ) / Corporate Level
 - CMD''s meet
 - Director(Tech)''s Coordination Meeting
 - National Dust Prevention Committee Meeting
 - Standing Committee on Safety in Coal Mines.
 At Ministerial / National Level
 - National Conference on Safety in mines.
 - Various Parliamentary Standing committees.
 Coal India Ltd has made optimum utilization of resources and technology
 for enhancement of efficiency and productivity in the Company. CIL has
 been developing new techniques and opportunities for employee''s
 self-development which in turn proved to be favouring the Company as a
 27.1 Overall Performance
 Company has achieved MoU targets for HRD for the current year.  71256
 employees were given training during 2014-15, out of which 18580 were
 executives and 52676 non-executives. These trainings included in- house
 training (training at subsidiary training centres and also at IICM),
 training in other reputed institutes outside the Company and training
 27.2 Trainings
 i) In-house Training
 In-house trainings were organized at subsidiary HQs, 27 training
 centres and also 102 VT centres across Coal India and also at IICM.
 Respective HRD division of subsidiaries had organized these trainings
 after assessing the training need in the respective category of
 employees within the subsidiary. Special attention was given for
 improving the skill of the employees keeping in mind the need of the
 industry. Details of in-house trainings imparted were as under:-
 ii) Training Outside Company (Within the Country)
 Besides in-house training at our training institutes, VT centres and
 IICM, employees were trained within the country at reputed training
 institutes, in their respective field of operations and also for
 supplementing 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:-
 iii) Initiatives
 - CIL has been recruiting fresh and dynamic young bloods in different
 disciplines for the last few years consistently.  A special attention
 has been given to groom 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 at 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.
 - As ManagementTraineesof Excavation and E&M disciplines are posted
 in coal mines, to provide them proper exposure to mining operations as
 well as mining equipments (both surface and underground) and to make
 them conversant with the mining activities, 5 weeks intensive training
 in different batches for a total of 196 Management Trainees was
 organized at Indian School of Mines, Dhanbad, the premier mining
 institute of our country during the year 2014-15.
 - 90 General Managers (E8) of different disciplines were given
 training through IIM, Calcutta on Advance Management for three weeks
 including overseas learning in Frankfurt School of Finance and
 Management, Stockholm School of Economics, St. Gallen, Switzerland and
 Essec Paris, France.
 - 160 middle level executives (E6 & E7) were given training on
 General Management for two weeks, by making a tie up with
 Administrative College of India (ASCI), Hyderabad.
 - 162 executives (E4 & E5) were given training on Executive
 Development Programme for two weeks, by making a tie up with Indian
 Institute of Management, Lucknow.
 - 336 executives have been given certified training in Project
 Management at IICM and other renowned institutes.
 - 186 executives have been given certified training in Contract
 Management at IICM and other reputed Institutes.
 iv) Training Abroad
 CIL has sent 118 employees (117 executives & 1 non-executive) to
 different countries from all the subsidiary companies and CIL (HQ) for
 training during the year 2014-15.
 27.3 Recruitment
 Coal India Limited had inducted fresh talent into the organization at
 entry level as Management Trainees. 414 Management Trainees have been
 recruited and inducted in various disciplines including the newly
 created Community Development discipline through open advertisement.
 Through campus recruitment 264 Management Trainees have been recruited
 and joined the Company. CIL has also recruited of 192 Senior Medical
 CIL has started the campus recruitment of Management Trainees in
 technical disciplines for 485 vacancies and selected 119 candidates
 till the end of March 2015; selection process is under way to fill up
 all the vacancies. The candidates selected from campuses would join the
 Company in July-August, 2015, on completion of their course.
 CIL has also concluded selection procedure for recruitment of three
 principals of nursing schools. CIL has also inducted 9 non-executives
 into Executive cadre through selection/promotion. In this financial
 year, 669 Management Trainees joined the Company were given induction
 training program at IICM and posted in subsidiary companies.
 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 Standardization Committee were held at
 regular intervals at CIL.
 To provide medical facility to a large number of ex- employees, who had
 separated from service after rendering prime time of their life to the
 Company, Contributory Post Retirement Medicare Scheme for
 non-executives was approved by the company''s board.
 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 4,01,101 (up to 31.03.2015).  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, currently, a populace of 19.57 Lakh
 (up to 31.03.2015) 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 80 Hospitals with 5,749 Beds, 405 dispensaries, 592 ambulance
 and 1,286 doctors including specialists in CIL and its subsidiaries to
 provide medical services to its employees. Besides 08 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.
 Medical facilities are also provided to the people residing in and
 around mines premises of the subsidiary companies of CIL.
 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
 and Delhi Public School etc to impart quality education.
 Coal India Scholarship Scheme (Revised - 2013)
 To encourage sons and daughters of employees of Coal India Limited, two
 types of scholarship namely Merit and General Scholarship, are being
 provided every year under prescribed terms and conditions.
 The number of students, who have been getting scholarship and number of
 students from IIT, NIT and Govt. Engineering & Medical Collages whose
 tuition fee and hostel charges are reimbursed for 2014-15 were as
 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, 22 Central co-operatives and 93 Primary
 co-operative Stores are functioning in the Coalfield areas of CIL. In
 addition, 158 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 educated to draw their salaries through 481 Number
 of Bank/ Extension Counters and they are also encouraged to practice
 thrift for the benefit of their families.
 9. Sports
 Structured sports policy of CIL and its subsidiaries was approved by
 CIL Board in its 296th meeting held on 25th March, 2013. As per sports
 policy, Coal India Sports Promotion Association (CISPA) has been
 registered under West Bengal Societies Registration Act, 1961 on 15th
 July, 2013. CISPA has undertaken several sports activities at national
 level according to the objectives of the policy.
 10. Welfare, Development and Empowerment of Women
 There is a Forum for Women in Public Sector (WIPS) Cell at the Company
 Headquarters in Kolkata and five subsidiary companies viz. ECL, BCCL,
 CCL, SECL & CMPDI. Each WIPS Cell is headed by a coordinator who plans
 and executes the various activities of the forum with the help of a
 duly appointed Executive Committee. The Company extends active support
 to various activities of WIPS comprising of welfare activities,
 training & development activities, seminars, cultural programmes,
 industrial awareness visits and health awareness programme etc for the
 WIPS members, women workers, their families and society at large.
 Coal India Ltd and its subsidiary companies are extending full-fledged
 support and patronage to National Conference 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 ENERPRISE award. In recent years, WIPS cell has done a
 commendable job 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 honouring the exceptional talent.
 11. Special Cash Award
 During 2014-15, an amount of Rs. 91,000/- has been provided as Special
 Cash Award to 15 meritorious children of employees of CIL (Hqrs.),
 Kolkata Desk Offices of subsidiary companies @ Rs. 7,000/- for 8 (Eight)
 students who have secured 90% or above marks in the Class-XII Board
 level examination and @ Rs. 5,000/- for 7(Seven) students who have
 secured 90% or above marks in the Class-X Board level examination.
 12. Recreational facilities
 At present there are seven holiday homes in following places.
 (a) Puri
 (b) Digha
 (c) Goa
 (d) Manali
 (e) Katra
 (f) Ajmer
 (g) Nainital
 (h) Haridwar
 Efforts are on to include more holiday homes in the other important
 tourist spots of the country.
 13. CIL Welfare Board Meeting
 Coal India Welfare Board is the decision-making forum regarding welfare
 policies for betterment and improvement of living conditions of
 employees of the Company.
 The members of CIL Welfare Board comprising of Central Trade Union
 representative and representation of managements meet regularly to
 discuss on the welfare measures and review the implementation of
 different welfare schemes. The meeting of the Welfare Board is held
 Coal India Limited envisioned that tree plantation plays an important
 role in its economic development and environmental balance.
 Accordingly every year Coal India Limited and its subsidiaries are
 planting saplings on the available land in its command areas.  During
 2014-15 Coal India Limited and its subsidiaries have planted 15.74
 Lakhs tree saplings over 627.79 Ha. under the plantation /
 afforestation programme.
 Since inception, CIL and its subsidiaries had planted more than 82
 million plant saplings over an area of 34944 Ha. upto 31st March, 2015.
 Keeping with the spirit of the Constitution of India, Coal India
 Limited continued its efforts to propagate and spread the progressive
 use of Official Language, Hindi, during the period under review. The
 management of Coal India Limited is committed to implement the
 provisions of Official Languages Act, Rules and Regulations. For this
 purpose periodical meetings and reviews are done regularly by the top
 Hindi workshops were organized regularly with a view to create a
 working atmosphere in Hindi and to remove hesitation of officers &
 employees to work in Hindi. During the year, large number of employees
 participated in such workshops.
 With a view to create conducive atmosphere for working in Hindi and
 accelerating the use of Hindi as official language among officials,
 ''Hindi Fortnight'' was observed in all offices of Coal India Ltd.
 starting from 14 September''2014. During the Hindi Fortnight, various
 Hindi competitions such as Hindi noting and drafting, Hindi essay
 writing, Hindi dictation, Hindi translation & Hindi typing were
 organized where a large numbers of employees participated
 enthusiastically. The winners were honoured with cash awards &
 certificates. This creates a consciousness among employees to use
 Rajbhasha in official Work. Regional Sales Offices situated at
 different cities were granted sufficient fund as per their size to
 celebrate Hindi Diwas & Hindi week/fortnight. In order to promote
 Hindi, a Hasya Kavi Sammelan was organized on 26-12-2014 at Rohini
 Housing Complex, Ultadanga, Kolkata where a large number of members
 were present.
 With a view to promote Hindi knowledge of employees, 10 sets of 9
 selected Hindi magazines are being distributed among different
 departments/ sections. It has been planned to publish a Hindi house
 journal from Coal India Ltd.(HQ) during 2015. Help literature and
 dictionaries were provided to the departments on demand.
 Coal India always lays emphasis on imparting training of Hindi Language
 and Hindi typing & stenography under Hindi teaching scheme of Govt. of
 India by nominating the employees in Hindi Praveen & Pragya classes.
 During the last session, CIL has nominated 2 persons in Praveen classes
 and two persons in Hindi typing & stenography classes.
 Various organizations of Govt. of India recognize the best performers
 by awarding prizes. During the year, Coal India Ltd.  received the
 following Prizes:-
 CIL bagged Indira Gandhi Rajbhasha shield: Under the Rajbhasha Award
 Scheme of the Govt. of India, honourable President of India Shri Pranab
 Mukherjee awarded Indira Gandhi Rajbhasha Shield to CIL-2nd prize for
 the best implementation of Official Language Policy of the Union among
 PSUs situated in region C at Rashtrapati Bhawan on the occasion
 of Hindi Diwas.
 CIL bagged 1st Prize of TOLIC(PSUs), Kolkata: Under the Rajbhasha Award
 Scheme of the Govt. of India, honorable Governor of West Bengal Shri
 Kesharinath Tripathi awarded TOLIC (PSUs) Kolkata shield - 1st Prize to
 Coal India Ltd. in the corporate offices category for the best
 implementation of Official Language Policy of the Union on 8.9.2014.
 On 25th July, 2014 under the award scheme of Kendriya Sachivalya Hindi
 Parishad, Coal India Ltd. was given ''Utkristh Sheild'' honour in the
 sammelan hall of Bhartiya Bhasha Parishad, Kolkata.
 CIL was awarded with ''International Academic Rajbhasha Shield'' in
 All India Official Language Conference at Goa organized by Rashtriya
 Hindi Academy, Rupambra on 27-10-2014.
 Inspection of offices is a part of the implementation. Officials of
 Rajbhasha department, CIL (HQ.) reviewed the status of implementation
 of Official Language in some of its subordinate offices during the year
 under review. Suggestions have been given to correct the short-comings
 seen during the inspection. Some Participants were also nominated in
 Hindi Workshop/Training camps organized by certain prestigious
 institutions to promote Hindi.
 The anti-corruption activities in CIL and its subsidiary companies have
 been institutionalized by setting up of Vigilance Departments in CIL
 and its 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 2014-15, 39 Intensive Examination of Works/
 Contracts were undertaken by CIL (HQ) and its subsidiary companies. In
 addition, 272 Surprise checks were carried out and 176 investigation
 cases were completed. Besides, 59 departmental inquiries were disposed
 of which resulted in punitive action against 278 officials. Such
 examinations/investigations have resulted in initiation of various
 system improvement measures.
 As per the directives of Central Vigilance Commission, Vigilance
 Awareness Week - 2014 was observed in Coal India Limited, IICM- Ranchi,
 North Eastern Coalfields-Margherita & Regional Sales Offices across the
 country from 27.10.2014 to 01.11.2014 emphasizing the theme of
 Combating Corruption - Technology as an enabler. As a part of the
 function, following major activities were organised:
 (i) The pledge was taken during the Board Meeting as well as by
 different Departments.
 (ii) Publicity was done through Banners, Posters, Vigilance Related
 slogans, Message through SMS mass messaging system etc.
 (iii) Speech Competition, Quiz Competition, Essay writing competition,
 feedback from employees, suggestions for System improvement taken.
 (iv) A one day orientation programme for Junior Level Managers was
 organized in two batches.
 (v) All Departments under CIL organised a Group discussion on ''IT
 implementation in organizational activities for transparent and
 effective corporate governance with the officials.
 (vi) Stake Holders meet was organized and their suggestion for measures
 to promote good governance and enhance the level of transparency in
 commercial activities of the 3 organisation were taken. Feedback
 related to transparency, fairness and customer satisfaction were
 (vii) Open Interactive Session with special emphasis on theme
 Combating Corruption - Technology as an enabler, was held on
 (viii) Vigilance Corner page on CIL website has been introduced having
 facility for online filing of Vigilance Complaints including PIDPI
 complaint, online filing and viewing of Annual Property Return etc.
 Preventive Vigilance/ System Improvement
 1. Improvements in Online Grievance Management System: Several
 improvements were made in the system creating facilities for filing of
 complaints on matters relating to subsidiaries, uploading of documents
 with online complaint, filing of PIDPI complaint where the identity of
 the complainant is masked etc.
 2. Online Bill Tracking System Implementation Action was taken to
 implement bill tracking system of CMPDIL, designed with customization
 on coal net, at CIL. The following additional features were suggested
 for incorporation in the existing module of CMPDIL:-
 a. The bill submitted by vendor with bill number to concerned bill
 processing division may generate a unique code no of CIL mapped with
 vendor bill no and work order /NIT no and immediately an
 acknowledgement is generated as a token of receipt and for online
 tracking of bill by vendor.
 b. The bill may appear in the Finance section only after processing of
 bill from the concerned section.
 c. If the bill is rejected and returned back to vendor, the reason for
 rejecting the bill may be incorporated with date of returning the bill.
 The same should be mapped with the new bill when submitted afresh next
 time. No new code should be assigned if the same bill was submitted
 earlier with same work order no.
 d. A report may be generated every week indicating the number of
 pending bill with the concerned department and delivered to concerned
 HOD for information through mail/sms.
 e. The bill status may be informed to vendor through mail/sms.
 f. Customized reports may be generated as details of pending bills with
 the concerned department, details of rejection and return back
 department-wise and details of payment released department-wise.
 System improvement suggestions:
 System improvement suggestions were made in many areas:
 a. Implementation of E-procurement
 b. DPC for promotion
 c. Procurement of explosives
 d. Manual for outsourcing of Coal and OB:
 e. Purchase Manual
 System Improvement Studies - Studies were taken in the following areas
 Sl.  Subject of Study
 1    Land Acquisition and R&R issues in Rajmahal
 2    Quality issue in Rajmahal mine
 3    Measurement of OB and Coal in outsourced patches
 4    Recording of performance of tyres through
      maintenance Logbook as per international practices.
 5    CSR Policy of CIL and monitoring of projects.
 6    Storage, Accounting and Monitoring of Diesel Usage
      in NEC
 7    Monitoring of coal usage by erstwhile non-core sector
 8    Losses due to excessive production of coal in mines
      having dispatch constraints.
 9    Action on CBI Reports
 10   Implementation of Bill passing system at CIL
 11   Fixation of normative coal consumption for various
      non-core sectors as per new coal gradation policy
      based on GCV system.
 12   Amendments in Manuals
 13   Quality of Coal- Issues and monitoring
 No employee received remuneration during 2014-15, either equal to or in
 excess of the limits prescribed under Rule 5(2) of Companies
 (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
 Details of Rule 5(1) of Companies (Appointment and Remuneration of
 Managerial Personnel) Rules, 2014 on disclosure in the Board Report
 with reference to remuneration of managerial personnel is annexed to
 the Report. (Annexure XII).
 Shri S. Narsing Rao continued as Chairman cum Managing Director of the
 company till 25.06.2014. Dr A. K Dubey, Additional Secretary, MoC took
 additional charge of CMD from 26.06.2014 and continued till 04.01.2015.
 Shri S.  Bhattacharya has assumed the Charge of Chairman cum Managing
 Director w.e.f 05.01.2015. Shri R. Mohan Das, Director (P&IR), Shri N.
 Kumar Director (Technical) and Shri B.K.Saxena, Director (Marketing)
 were on the Board throughout the year. Shri C.K.Dey has assumed the
 charge of Director (Finance) from 01.03.2015 on superannuation of Shri
 A. Chatterjee from 28.02.2015.
 Dr A K Dubey, Additional Secretary, MoC and Smt Sujata Prasad, Joint
 Secretary & Financial Advisor, MoC continued as part-time official
 Directors on the Board throughout the year.
 Shri Sri Prakash, Shri Alok Perti and Shri C. Balakrishnan, Independent
 Directors, resigned from the Board on 02.09.2014, 08.09.2014 &
 09.09.2014 respectively.  Appointment of Dr R. N.Trivedi, Dr Noor
 Mohammad and Prof Indranil Manna, Independent Directors as directors of
 the company for the balance period of their tenure was placed in the
 AGM of the company. However shareholders of the company did not approve
 their appointment and hence they ceased to be directors of the company
 w.e.f 10.09.2014.
 Shri A. N. Sahay, CMD, MCL and Shri A.K.Debnath, CMD, CMPDIL, permanent
 invitees on CIL Board continued throughout the year. Shri A.K.Maitra
 has been appointed as permanent invitee on the board with effect from
 10.06.2014 and continued till 31.12.2014.
 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 the Directors during the year.
 In terms of Article 39(j) of the Articles of Association of the
 Company, one third of retiring Directors are liable to retire by
 rotation shall retire at the ensuing Annual General Meeting and being
 eligible they offer themselves for reappointment.
 The Board of Directors held 7 meetings during the year 2014-15.
 Details are disclosed in the Corporate Governance Report under point
 number 3.1.
 Details are disclosed in the Corporate Governance Report under point
 number 3.6.
 The following Independent Directors have given their consent during
 2014-15 that they meet the criteria of independence as provided in
 sub-section (6) of Section 149 of the Companies Act 2013.
 i. Dr. R.N. Trivedi.
 ii. Shri Alok Perti.
 iii. Shri C.Balakrishnan.
 iv. Dr Noor Mohammad.
 v. Prof Indranil Manna.
 vi. Shri Sri Prakash.
 No Director was reappointed in terms of section 149(10) of the
 Companies Act 2013.
 All the recommendations made by Audit Committee were accepted by the
 (3) OF SECTION 178.
 MCA vide notification no. G.S.R. 463(E) dated 5th June''2015 has
 exempted the above for Government companies.
 SECTION 178(4).
 MCA vide notification no. G.S.R. 463(E) dated 5th June''2015 has
 exempted the above for directors of Government companies.
 MCA vide notification no. G.S.R. 463(E) dated 5th June''2015 has
 exempted the above for Government companies.
 Related party transactions were made with its subsidiary companies and
 that all such transactions were exempted under clause 49(VII)(D) and
 (E) of Listing Agreement being transactions between two government
 companies and transactions entered between a holding and its wholly
 owned subsidiaries whose accounts are consolidated with holding company
 and placed before the shareholders at the General meetings for
 Loan, guarantees and investments made by Coal India Limited in terms of
 section 186 of Companies Act 2013 is enclosed as Annexure XIII.
 Board members are fully briefed on all business related matters,
 associated risks and new initiatives etc. of the Company. Company has
 prepared a draft policy on familiarization programme of Directors. In
 the absence of independent Directors the policy has not been placed to
 the Board.
 The Company has in place an Anti-Sexual Harassment Policy in line with
 the requirements of The Sexual Harassment of Women at the Workplace
 (Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints
 Committee (ICC) has been set up to redress complaints received
 regarding sexual harassment. All employees (permanent, contractual,
 temporary, trainees) are covered under this policy.
 No sexual harassment complaint was received during the year under
 In terms of Section 134(3)(c) of the Companies Act, 2013, read with the
 Significant Accounting Policies at Note 33 and Additional Notes on
 Accounts at Note 34 forming part of :
 1. CIL (Standalone) Accounts
 2. CIL (Consolidated) Accounts,
 Based on such confirmation obtained from eight Indian subsidiaries of
 CIL, viz: Eastern Coalfields Limited, Bharat Coking Coal Limited,
 Central Coalfields Limited, Northern Coalfields Limited, Western
 Coalfields Limited, Mahanadi Coalfields Limited (Consolidated), South
 Eastern Coalfields Limited (Consolidated), Central Mine Planning &
 Design Institute Limited. However, for the overseas subsidiary viz:
 Coal India Africana Limitada, which is incorporated under the laws of a
 different sovereign i.e. Republic of Mozambique and for Joint Ventures
 viz: International Coal Ventures Private Limited and NTPC Urja Private
 Limited where CIL is not the majority shareholder, such confirmation
 have not been obtained.
 It is confirmed that:
 a) In preparation of the Annual Accounts, the applicable Accounting
 Standards have been followed and that no material departures have been
 made from the same;
 b) The Accounting policies have been selected and applied consistently
 and judgments and estimates that have been made are reasonable and
 prudent so as 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;
 c) Proper and sufficient care have been taken for maintenance of
 adequate accounting records in accordance with the provisions of this
 Act for safeguarding the assets of the Company and for preventing and
 detecting fraud and other irregularities;
 d) The Annual Accounts have been prepared on a going concern basis;
 e) Internal financial controls have been laid down and followed by the
 company and that such internal financial controls are adequate and
 operating effectively and;
 f) Proper systems have been devised to ensure compliance with the
 provisions of all applicable laws and such systems are adequate and
 operating effectively.
 The statement containing the salient features of the financial
 statement of a company''s subsidiaries, associate companies and joint
 ventures under the first proviso to sub-section (3) of section 129 of
 Companies Act 2013 is enclosed as AOC 1 in Annexure II.  In terms of
 General Circular No. 2/ 2011 dated 8th Feb 2011 from Ministry of
 Corporate Affairs, the Annual Accounts of the subsidiary companies
 shall be made available to the shareholders seeking such information.
 The Cost Audit of your company for the year 2013-14 was conducted by
 M/s Musib & Co and the Cost audit report was approved by the Board of
 Directors in their 309th meeting held on 12th August''2014.  The Cost
 Audit Report did not contain any adverse observation/ comment or
 qualification from the Cost Auditor. The above report was e-filed in
 XBRL mode in MCA website vide SRN S31270903 on 19th September''2014.
 M/s Musib & Co., Practising Cost Accountants was appointed as Cost
 Auditor for the year 2015-16 with the recommendation of audit Committee
 & approval of Board in its meeting held on 28th May''2015. E-form CRA
 2 was filed on 12th June''2015.
 In pursuance to Section 204 of Companies Act 2013, company had
 conducted Secretarial Audit for the year 2014-15 by a practicing
 Company Secretary M/s Vinod Kothari & Co, Practising Company
 Secretaries. Their appointment was approved by the Board. The report of
 Secretarial Auditor and the observations of Secretarial Auditor and
 Management Explanation are enclosed as Annexure VI.
 Company has appointed Ernst & Young LLP for preparation of Risk
 mitigation measures. They have submitted a draft report of the same.
 The following policies may be accessed on the Company''s website as
 1. Corporate Social Responsibility Policy: documents/CIL CSR
 Policy New Companies Act 2013 16062014.pdf
 2. Vigil Mechanism:  aspx
 3. Policy for determining Material Subsidiary: documents/POLICY
 4. Related Party Transaction Policy: https://www.coalindia.
 in/DesktopModules/DocumentList/documents/Related Party Transaction
 Policy'' 01122014(1).PDF
 54. B.I.F.R AND BRPSE STATUS Eastern Coalfields Limited (ECL)
 The networth of the Company became negative as on 31st March, 1999 and
 the Company was referred to BIFR in November, 1999.
 The Company''s case was registered as case no.501/2000.
 BIFR sanctioned Draft Rehabilitation Scheme in November, 2004 for
 implementation. As per the scheme, the networth of the Company was
 slated to become positive in 2008-09 with concessions from CIL. The
 Cabinet Committee on Economic Affairs had also approved BRPSE
 recommended Revival Plan of ECL on 6th October, 2006. As per this
 Scheme, the networth of the Company was slated to become positive in
 BIFR in its hearing held on 22.09.2014 gave the following directions:
 a. Monitoring Agency (SBI) clarify to the company about the procedure
 of implementation of the unimplemented part of the scheme and its
 treatment in the Balance Sheet regarding waiver of unsecured loan and
 conversion of current account balance into equity share capital.
 b. SBI (MA) to submit a report that the implementation of the
 sanctioned scheme is in consistent in the manner it was sanctioned.
 c. The Company to file Auditors certificate stating status of net worth
 of the company along with its current Balance Sheet immediately after
 implementation of the un-implemented part of the sanctioned scheme.
 d. Thereafter, SBI (MA) will examine the Auditors certificate on its
 receipt from the Company and submit its recommendation on the status of
 net worth of the company in order to enable the Board to decide the
 issue of deregistration of the reference.
 Coal India Limited (the Holding company) in its 310th Board Meeting
 held on 8th November, 2014 has approved to convert unsecured loan of Rs.
 519 crore and current account balance of Rs. 1532 crore as on 31st March,
 2003 of ECL with CIL aggregating to Rs. 2051 crore to issue fully paid 6%
 non-convertible, cumulative, redeemable Preference Shares of face value
 Rs. 1000/- each to CIL.  With the approval of its shareholders, ECL Board
 had approved to issue 2,05,09,700 6% Non-convertible, redeemable,
 cumulative Preference Shares of Rs. 1000/- each to Coal India Limited.
 As per accounts of the company for the period ending 31st December,
 2014, the company has reported a positive networth of Rs. 916.87 crore.
 In the BIFR hearing held on 11.02.2015, the Bench issued the following
 The sick company, M/s Eastern Coalfields Ltd. (BIFR Case
 No.501/2000) ceases to be a sick industrial company, within the meaning
 of Section 3(1) (o) of SICA, as its networth has turned positive.
 Hence, no subsidiary of CIL is a Sick Company as on 31st March''2015.
 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 Trade Unions. Your Directors also gratefully
 acknowledges the co-operation, support and guidance extended to the
 Company by various Ministries of the Government of India in general and
 the Ministry of Coal, in particular, besides the State Governments.
 Your Directors also acknowledge 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 continued
 The following are annexed.
 i) The comments and review of the Comptroller and Auditor General of
 India on Standalone Accounts of Coal India Limited. (Annexure I)
 ii) Auditors Report on the Standalone Financial Statements for the year
 ended 31st March, 2015 and Management reply (Annexure I (A)).
 iii) Statement pursuant to first proviso to sub-section (3) of section
 129 read with rule 5 of Companies (Accounts) Rules, 2014) as at 31st
 March, 2015. (Annexure II)
 iv) Foreign Exchange Earning and Outgo under rule 8 of Companies
 (Accounts) Rules 2014. (Annexure III).
 v) Details about research and development of the Company, (Annexure
 vi) Observations of Auditor on Standalone Financial Statements and
 Management Explanation under Sec 134(3)(f)(i) of Companies Act 2013.
 (Annexure V).
 vii) Secretarial Audit report under section 204 of Companies Act 2013
 and Observation of Secretarial Auditor & Management Explanation
 (Annexure VI).
 viii) Performance against MoU for 2014-15 (Annexure VII).
 ix) Disclosure as per Section 135 of Companies Act 2013 on Corporate
 Social Responsibility (Annexure VIII).
 x) The extract of the annual return as provided under sub- section (3)
 of section 92 in Form No. MGT.9.(Annexure IX).
 xi) Policy for determining the Material Subsidiary- Clause 49 of
 Listing agreement (Annexure X).
 xii) Significant and Material Orders passed by the regulators or
 Courts.(Annexure XI).
 xiii) Disclosures under Rule 5(1) of Companies (Appointment and
 Remuneration of Managerial Personnel) Rules, 2014 (Annexure XII).
 xiv) Loan, guarantees or investments made by the company under section
 186(4) of the Companies Act 2013. (Annexure XIII)
 xv) Corporate Governance Report.(Annexure XIV).
 xvi) The comments and review of the Comptroller and Auditor General of
 India on Consolidated Accounts of Coal India Limited. (Annexure XV).
 xvii) Auditors Report on the Consolidated Financial Statements for the
 year ended 31st March, 2015 and Management reply. [Annexure XV(A)].
 xviii) Observations of Auditors on Consolidated Financial Statements
 and Management Explanation under Sec 134(3) (f)(i) of Companies Act
 2013. [Annexure XV(B)].
                       For and on behalf of the Board of Directors
                                                  S. Bhattacharya
 22nd July, 2015                                         Chairman
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