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Coal India
BSE: 533278|NSE: COALINDIA|ISIN: INE522F01014|SECTOR: Mining/Minerals
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Company History - Coal India
In order to provide for a higher growth in coal sector to meet the
 growing energy needs of the country, the Government in 1973,
 nationalized the coal mines by enacting the Coal Nationalization Act.
 Pursuant to the nationalization of coal mines, our Company was
 incorporated as a private limited company with the name of ‘Coal
 Mines Authority Limited’, under the Companies Act on June 14, 1973,
 and in terms of notification no. G.S.R. 345(F) dated July 9, 1973,
 issued pursuant to the provisions of Section 5 of the Coal
 Nationalization Act 
 certain nationalized coal mines were vested in our Company by the
 Central Government.   
  
 Thereafter in 1975, Department of Coal, Ministry of Energy, GoI, with
 a view to integrate and streamline the structural set up in a manner
 which could be conducive to a more efficient administration, issued
 letter no. 38011/1/1/74-CAF dated September 27, 1975, providing for
 the re-organisation of ‘Coal Mines Authority Limited’ as ‘Coal India
 Limited’, which was to be responsible for the entire coal mining
 sector owned and controlled by the Central Government. Further, to
 the above direction from the Ministry of Energy, Department of Coal,
 the following steps were undertaken to re-organize our Company:  
  
 (a)  BCCL was made a Subsidiary of our Company.  
  
 (b)  ‘National Coal Development Corporation’ was renamed as ‘Central
 Coalfields Limited’ and made a Subsidiary of our Company. Further,
 the central division of our Company was transferred to CCL.  
 
 (c)  CMPDIL was incorporated as a private limited company and made
 Subsidiary of our Company. Further, the mine planning division of our
 Company was transferred to CMPDIL.  
 
 (d)  ECL was incorporated as a private limited company and made a
 Subsidiary of our Company. Further, the eastern division of our
 Company was transferred to ECL.  
 
 (e)  WCL was incorporated as a private limited company and made a
 Subsidiary of our Company. Further, the western division of our
 Company was transferred to WCL.  
 
 In compliance with the above direction from the Ministry of Energy,
 Department of Coal, and pursuant to a resolution of our shareholders
 dated October 15, 1975 and approval of the Ministry of Law, Justice
 and Company Affairs (letter no. RD/T/5226) dated October 21, 1975,
 the name of our Company was changed to ‘Coal India Limited’ and we
 received a fresh certificate of incorporation dated October 21, 1975
 from the RoC, consequent upon such change of name.  
  
 Pursuant to the nationalization of coal mines and during the period
 upto 1991, our Company was able to enhance the growth rate of coal
 production from a CAGR of 2.18% at the time of nationalisation in
 Fiscal 1974 to a CAGR of 5.63% by Fiscal 1991. However during this
 period, due to certain macro-economic and socio economic factors, our
 Company continued to operate certain legacy mines inherited pursuant
 to the nationalization and to operate certain new projects
 irrespective of financial viability. Further, on account of certain
 internal reasons and policy issues, our Company’s accumulated losses
 in Fiscal 1991 and overdue 
 liabilities to the Government in Fiscal 1993, reached Rs. 24,989.80
 million and Rs. 23,113.10 million respectively. Thereafter, post 1991
 upon our Company achieving certain milestones and certain policy
 changes initiated by the Government our Company endeavoured to
 consolidate its financial position.
 
 Major Events and Milestones
   
 1973-74 
 
  - Nationalization of coal mines, in order to provide for a higher
 growth in coal sector to                   meet  the growing energy
 needs of the country.  
 
 -Incorporation of our Company as ‘Coal Mines Authority Limited’.   
 
 1975-76 
 
 - Change of name of our Company to ‘Coal India Limited’. 
 
 - Incorporation of CMPDIL, ECL and WCL, and formation of BCCL, CCL,
 CMPDIL, ECL 
 and WCL, as our Subsidiaries.  
 
 1979-80 
 
 - Construction of the low temperature carbonized plant started in
 Dankuni Coal Complex.  
 
 - The pricing policy of CMPDIL was reviewed to ensure that the
 company was working on a 
 commercial line instead of working on no profit no loss basis.
 
 1980-81 
 
 - Construction of five new washeries: Moonidih washery, Ramgarh
 washery, Mohuda 
 washery, Barora washery, Kedla washery. 
 
 - Overall production of coal by our Company and our Subsidiaries
 crossed 100 million tonnes. 
 
 1981-82 
 - Introduction of retention prices of coal by amending the Colliery
 Control Order, 1945 by 
 notification dated March 31, 1982, in respect of our Subsidiaries.  
 
 1985-86 
 
 - Formation of NCL and SECL as Subsidiaries of our Company, to manage
 certain mines 
 managed by WCL and CCL.  
 
 1987-88 
 -‘Blasting Gallery Method’ introduced at East Katras mine under BCCL
 and Chora mine 
 under ECL. 
 
 1991-92
 
 - Uptrend of profit started in 1991 and our Company earned a profit
 of Rs. 1,670 million in 
 Fiscal 1992.  
 
 - Overall production of coal by our Company and our Subsidiaries
 crossed 200 million tonnes. 
 
 - Fixing of coal prices once a year to compensate for increase in
 price of inputs on a normative 
 cost basis, and adoption of the escalation formula prescribed by the
 Bureau of Industrial Cost 
 and Prices (BICP).    
 
 1992-93 
 
 -Formation of MCL as our Subsidiary to manage mines Talcher and IB
 valley in the state of 
 Orissa.  
 
 1995-96
 
  -  Approval of a financial restructuring package by the Government,
 whereby Rs. 8,917 million 
 of interest liability was waived, Rs. 9,041.8 million of plan loan
 repayment arrears was 
 converted to preference equity and Rs. 4,326.4 million of non plan
 payment arrears were 
 allowed a moratorium for repayment and interest accrual for a period
 of three years, to be 
 repaid in three equal instalments.  
 
 -   A profit of Rs. 6,116 million in Fiscal 1996 was earned by our
 Company.  
 
 1996-97 
 
 - Rating of ‘A+’, indicating adequate safety with regard to timely
 payment of interest and 
 principal, awarded by CRISIL in respect of the Rs. 4,000 million bond
 issue by our 
 Company.   
 
 - Adoption of financial viability as the basis for approval of coal
 development projects. 
 
 - Discontinuation of retention prices scheme and the Coal Price
 Regulation Account (CPRA), 
 with the deregulation in prices of certain grades of coal. 
 
 1997-98 
 
 - Corporatization of the financial flow between our Company and 
 Subsidiaries, such that our 
 Company is to receive only dividends under applicable policy from our
 Subsidiaries and the 
 corpus of our Company was to be utilized to provide strategic support
 to a loss making entity 
 only for, inter alia, maintaining their productive capital assets
 .  
 - Sanction of loan of USD 1.03 billion from the World Bank and the
 Japanese Bank for 
 International Co-operation for implementing 24 highly viable open
 case projects with global 
 sourcing of equipments, of which USD 484.40 million was availed
 during the period 
 between Fiscal 1998 to Fiscal 2004. 
 
 2001-02  
 - Laying down of a minimum internal rate of return of 12% at 85%
 capacity utilization as cut 
 off for the development of a project.   
 
 2003-04
 -Overall production of coal by our Company and our Subsidiaries
 crosses 300 million tonnes. 
 
 2005-06 
 
 - Rating of ‘AAA/Stable’, indicating highest degree of safety with
 regard to timely payment 
 of interest and principal, awarded by CRISIL in respect of the Rs.
 250 million bond 
 programme of our Company.   
 
 -  Introduction of sale of coal through ‘e-auction method’.  
 
 -  ECL and BCCL reported profit of Rs. 3,638 million and 2,026.67
 million in Fiscal 2006.  
 
 2006-07 
 
 - Award of ‘Mini Ratna’ status by the Department of Public
 Enterprises, GoI, to our Company 
 and to MCL, NCL, SECL and WCL.  
 
 - Decline in debt as a percentage of net worth from 66 % in 2001-2002
 to 10 % in 2006 -2007
 
 2007-08 
 
 - Award of ‘Mini Ratna’ status by the Department of Public
 Enterprises, GoI, to CCL. . 
 
 2008-09  
 
 - Award of ‘Navratna’ status to our Company by the Department of
 Public Enterprises, GoI, 
 for our operational efficiency and financial  strength, which affords
 greater operational 
 freedom and autonomy in decision making.  
 
 - Overall production of coal by our Company and our Subsidiaries,
 crossed 400 million 
 tonnes. 
 
 2009-10 
 
 - Award of the Scope Excellence Award to our Company by the Standing
 Conference of 
 Public Enterprises for the year 2007-08. 
 
 - Establishment of Coal India Africana Limitada, a foreign subsidiary
 in Mozambique; 
 Conversion of our Company into a public limited company. 
 
 - Award of ‘Mini Ratna’ status by the Department of Public
 Enterprises, GoI, to CMPDIL. 
 
 - Receipt by our Company of a composite score of 1.47 and rating as
 excellent for the year 
 2007-2008 by Department of Public Enterprises, Ministry of Heavy
 Industries & Public 
 Enterprises, GoI. 
 
 Awards and Accreditations  
 
 Year                            Awards / Accreditations 
 
 2007  Conferred with the Enterprise Excellence Award 2007 by the
 Indian Institution of Industrial Engineering.* 
 
 2008  Conferred with the SCOPE Gold Trophy 2007-08 for Excellence and
 Outstanding 
 Contribution to the Public Sector Management.** 
 
 2009  Conferred with the World’s Largest Coal Producing Company Award
 at the first Dalal 
 Street Investment Journal PSU Awards, 2009.  
 
 2009  Ranked among the top five finalists in the 11th  Anniversary of
 Platts Global Energy Awards 
 
 2009, in the ‘Energy Producer of the Year’ category. 
 
 2010  Chairman and Managing Director of our Company, Mr. Partha S.
 Bhattacharyya was 
 conferred with the CEO with HR Orientation Award by the Council of
 World HRD 
 Congress at the Global HR Excellence Awards Ceremony 2010.
 
 2011
 
 -Coal India Limited conferred International Award 
 
 --Coal India to be included in SENSEX
 
 -CIL seeks pvt cos’ tie-up for gasification project
 
 2012
 
 -Coal India signs MoU with Government
 
 -Coal India Limited (CIL) the Maharatna public sector coal mining
 giant, on 31 January 2012, finalized the wage agreement
 
 -CIL signs FSA with 14 power companies
 
 -CIL gets 116 mines from government to boost output
Source : Dion Global Solutions Limited
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