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