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நிறுவன பெயரின் முதல் சில எழுத்துக்களை நிரப்பி 'கோ' பட்டனை கிளிக் செய்யவும்

Coal India Ltd.-இன் இயக்குநர் அறிக்கை

Mar 31, 2019

Ladies and Gentlemen,

On behalf of the Board of Directors, I have great pleasure in presenting to you, the 45th Annual Report of Coal India Limited (CIL) and Audited Accounts for the year ended 31st March, 2019 together with the reports of Statutory Auditors and Comptroller and Auditor General of India thereon.

Coal India Limited (CIL) is a ‘Maharatna’ company under the Ministry of Coal, Government of India with headquarters at Kolkata, West Bengal. CIL is the single largest coal producing company in the world and one of the largest corporate employers with manpower of 285479 (as on 1st April, 2019). CIL operates through 83 mining areas spread over eight (8) provincial states of India. Coal India Limited has 364 mines (as on 1st April, 2019) of which 166 are underground, 180 opencast and 18 mixed mines. CIL further operates 16 coal washeries, (12 coking coal and 4 non-coking coal) and also manages other establishments like workshops, hospitals, and so on. CIL has 27 training Institutes. Indian Institute of Coal Management (IICM) is an excellent training centre operates under CIL and imparts multi-disciplinary management development programmes to the executives. Coal India’s major consumers are Power and Steel sectors. Others include cement, fertilizer, brick, kilns, and a host of other industries.

CIL has eight fully owned Indian subsidiary companies namely 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 is managed directly by CIL.

Mahanadi Coalfields Limited, a subsidiary of Coal India Ltd is having four (4) Subsidiaries, SECL has two (2) Subsidiaries and CCL has one (1) subsidiary.

1. STATE OF COMPANY AFFAIRS

1) For the year Company produced all time high production 606.89 MT with a growth of 6.97% and achieved an all time high off take 608.14 MT with a growth of 4.8%.

2) As on 01.04.19, not a single power plant in country was in critical, super critical list of CEA for want of coal.

3) Achieved highest PBT of Rs. 27125.46 crores and PAT of Rs. 17462.18 crores during the year.

4) All the eight subsidiaries of Coal India Ltd. achieved PBT and PAT during the year.

5) Tori-Shivpur single line of 44.37 KMs had been completed in SeptemberRs. 2018 and is now operational. Jharsuguda-Barpalli-Sardega Rail link of 52.41 KMs had been commissioned in AprilRs. 2018. CERL phase-I track linking of first 44 KM from Kharsia to Korichhapar (Single line) completed.

6) For implementation of ERP, contract signed and work commenced on 24th SeptemberRs. 2018.

2. FINANCIAL PERFORMANCE

2.1 Financial Results (CIL Consolidated)

During the year, CIL has registered highest ever profit. CIL has achieved an aggregate Pre-Tax Profit of Rs 27,125.46 crores and post-tax profit of Rs. 17,462.18 crores for the year 2018-19 as against pre-tax profit of Rs. 10,770.31 crores and post-tax profit of Rs. 7038.44 crores in 2017-18 thereby recording an increase of 151.85% and 148.10% in pre-tax profit and post-tax profit respectively. The subsidiary wise details of Pre-tax Profit are given in Annexure 1.

Highlights of performance

The highlights of performance of Coal India Limited Consolidated for the year 2018-19 compared to previous year are shown in the table below:

Particulars

2018-19

2017-18

Production of Coal (in million tonnes)*

606.89

567.37

Off-take of Coal (in million tonnes)

608.137

580.287

Sales (Gross) (Rs./Crores)

140603.00

126543.97

Capital Employed (Rs/Crores) Note-1

65780.07

55643.32

Capital Employed (Rs/Crores)- excluding capital work in progress and intangible assets under development

52046.54

41856.51

Net Worth (Rs./Crores)

26435.04

20159.53

Profit Before Tax (Rs./Crores)

27125.46

10770.31

Profit for the Period (Rs/Crores)

17462.18

7038.44

Total Comprehensive Income for the period (Rs/Crores)

17479.56

7681.26

Profit for the Period / Capital Employed (in %)

26.55%

12.65 %

Profit before Tax / Net Worth (in %)

102.61%

53.43 %

Profit for the period / Net Worth (in %)

66.06%

34.91%

Earning Per Share (Rs.)

(Considering Face Value of Rs.10 per share)

28.14

11.34

Dividend per Share (Rs.)

(Considering Face Value of Rs.10 per share)

13.10

16.50

Coal Stock (Net) (in terms of No. of months Net Sales)

0.53

0.74

Trade Receivables (Net) (in terms of No of Months Gross Sales)

0.47

0.59

*Production and Offtake of Coal for FY 2018-19 includes 3.27 MT and 1.68 MT (FY 2017-18 3.227 MT and 1.327 MT) in respect of Gare Palma IV/2&3 and Gare Palma IV/1 OC Mine for which Coal India Ltd. has been appointed akin to a designated custodian w.e.f 01.04.2015 (through SECL)

Note-1: Capital employed = Gross Block of Fixed assets (including capital work in progress and intangible assets under development) less accumulated depreciation plus current assets minus current liabilities.

Transfer to Reserves General Reserve:

During the year 2018-19, a sum of Rs. 782.12 crore (Rs. 544.89 crores) was transferred to General Reserves out of CIL Consolidated profits and amount of Rs. 1206.90 crores was utilized for buyback of shares and tax on buyback in 2018-19 (amount of Rs. 483.80 crores was utilized for issuing of bonus shares in 2017-18).

Capital Reserve:

Grant / Funds received from various implementing agencies like Science & Technology, Promotional Regional Exploration, Coal Controlling Development Authority etc. and used for creation of assets are treated as Capital Reserve and depreciation thereon is debited to Capital Reserve Account. The ownership of the asset created through grants lies with the authority from whom the grant is received. The balance of grants as on 31.03.2019 and 31.03.2018 is Rs.18.88 crores and Rs.19.21 crores respectively.

During the Year 2018-19, MCL, NCL and SECL bought back 442967, 518560 and 490039 No. of shares respectively for a cash outflow of Rs.355 Crore each along with premium of Rs.310.70 Crores, Rs.303.14 Crores and Rs.306 Crores respectively. Difference in Carrying Value of Investment in subsidiaries and Share capital of Subsidiaries after above Buy-Back Rs.105.51 Crores is adjusted to Capital Reserve.

2.2 Dividend Income and Pay Outs (CIL Standalone)

While the financial statements of both CIL Standalone and CIL Consolidated are presented separately, only CIL Standalone is listed and relevant for dividend payment to its shareholders. The dividend to its shareholders are paid out of CIL’s Standalone income, the major part of which constitutes the dividend income received during 2018-19 from its five profit making subsidiaries i.e. CCL, NCL, SECL, MCL and CMPDIL. The breakup of such dividend received and accounted for during the year from different subsidiaries are given in Annexure 2.

During the year ended 31.03.2019, Government of India has further disinvested 7.388% of total Equity share capital equivalent to 45,83,61,363 no. of equity shares by way of placement of shares via various modes.(including Offer for Sale). Subsequently, Offer for Sale of shares was undertaken for Employees of Coal India Ltd. and its Subsidiaries. 1192 employees were successfully allotted 681840 Shares @ Rs. 254.22 amounting to Rs. 17.33 crores.

Further, during the year CIL has carried out a Buyback of 4,46,80,850 nos. comprising Govt. Shares 4,42,93,572 of its own equity shares of Rs.10 each at a price of Rs. 235 per equity shares, aggregate consideration amounting to Rs. 1050 crores. The date of extinguishment of Share was 22.03.2019. Thus, holding of Government of India stands at 70.96% of Total Equity share capital as at 31st March, 2019.

During the year 2018-19, CIL Standalone has paid a total dividend (by way of interim dividend) of Rs. 8105.58 crores @ Rs. 13.10 per share of Rs.10/ - each fully paid up. Out of above total dividend, the share of Govt of India was Rs. 5839.33 crores and for other shareholders, Rs. 2266.25 crores. (Earlier year - Total Dividend Rs. 10242.24 Crores; Govt of India - Rs. 8044.86 crores and Other shareholders - Rs. 2197.38 crores)

2.3 Supplementary Audit of Financial Statements by Comptroller and Auditor General of India (C&AG)

There are no comments issued by the office of the C&AG either on Standalone or Consolidated Financial Statements of the company for the year 201819 on supplementary audit conducted under section 143(6)(a) [and also read with Sec 129(4)] of the Companies Act,2013.The comments on supplementary audit of Standalone and Consolidated Financial Statements are enclosed as Annexure 3 and Annexure 4 respectively.

2.4 Management Explanation on Statutory Auditor’s Report

The statutory auditors of the company have given an unqualified report [Annexure 3(A) and Annexure 4(A)] on the Standalone Financial Statements and Consolidated Financial Statements respectively of the company for the financial year 2018-19. However, they have drawn attention to certain matters under “Emphasis of Matters”.

The Auditors have drawn attention under Emphasis of Matter regarding long term (non-current) investments in two subsidiaries by the CIL Standalone, which have been adequately explained in footnote 1 of note no.7.

In consolidated accounts the Auditors have drawn attention regarding confirmation of balances (Ref. note no. 38.5(m) ) ; regarding contingent liability towards penalty for mining of coal in excess of the environmental clearance limit in respect of certain mines (Ref. note no.38.5(a)(i) ) ; regarding provision if any unascertained, pending price finalisation of washed medium coking coal supplied by CCL a subsidiary of CIL (Ref. note no. 38.7(p)(vii)).

These issues have been adequately explained in the respective notes/footnotes in the accounts referred above.

There were certain other issues in a few subsidiaries, wherein the Auditors have drawn attention viz.)/ regarding certain incomes/expenses of earlier years relating to write back of progressive mine closure expenses(in case of BCCL) / depreciation on PPE(in case of CMPDIL)/ adjustment in sales(in case of CMPDIL) etc. considered in current year in view of non-material impact in each of these cases ; non-inclusion of interest from the date of demand to the date of Balance sheet on disputed income tax in contingent liability (in case of NCL) in view of the company having obtained favourable decision from higher authorities on similar disputes in past cases ; absence of requisite women director in the Board and accumulation of Input Tax Credit of GST (in case of WCL) . While the issue of women director appointment has been taken up with appropriate authorities, the accumulated Input Tax Credit is non lapsable and is expected to be utilised in future.

3. COAL MARKETING

3.1 Sale of Coal

- Offtake of raw coal crossed 600 Million Tonnes (MT) landmark and a record offtake of 608.137 MT was achieved during 2018-19, surpassing the previous highest of 580.28 MT achieved during the last year by 4.80 %. In the process, 1.396 MT of coal stock was also liquidated during the year. Company-wise target vis-a-vis actual off-take for 2018-19 and 2017-18 are shown in Annexure-5.

- Despatch of coal and coal products during 2018-19 was at 608.300 MT, almost at 100% materialization of the target. Sector-wise breakup of dispatch of coal & coal products for 2018-19 against the target and last year’s actual is given in Annexure-6.

- A major thrust was made to bring the linked thermal power stations of the country out of critical stock position. A record dispatch of 491.54 MT of coal and coal products was made to power sector in 2018-19, exceeding the target of 489.01 MT and registering a growth of 8.2% over 454.224 MT dispatched in 2017-18. As the result, about 15 MT of coal was added to the stocks of the linked power station and none of them was in the critical stock list of CEA as on 31.3.2019, though as many as 30 of them were in the critical stock list as on 1.4.2018

- Improvement in stocks with power sector had provided the leeway to CIL increase the despatches to Non-Power Sector from the fourth quarter of 2018-19 onwards.

- Auction of coal through Spot e-Auction, Special Spot e-Auction, Special Forward e-Auction for Power and Exclusive e-Auction for NonPower schemes had continued during 2018-19 with better yields as compared to the previous year. Booking of coal in the auctions conducted during 2018-19 was against a premium of Rs. 8983 crores, at 77% over the notified price of coal. The booking of coal in the auctions conducted in 2017-18 was against a premium of Rs.6589 crores, at 50% over the notified price.

3.2 Long term demand creation

- Additional long term demands are created through linkages allotted through the below mentioned schemes formulated by the government:

A. Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India (SHAKTI), for Power Sector notified by the government on 22.05.2017.

B. Auction of coal linkages to Non-Regulated Sector (NRS) notified by the government on 15.02.2016.

A. SHAKTI :

SHAKTI Policy contains provisions for coal supply for various categories of power plants fulfilling different criteria.

Until 2018-19, MoC has recommended signing of FSA with 8 Thermal Power Plants (TPPs) under the provisions of Para A(i) of SHAKTI for an Annual Contracted Quantity of 20.167 MT and FSAs have been signed with 5 TPPs for the ACQ of 16.967 MT. Also, on the recommendation of SLC(LT), FSAs have been signed under the provisions of Para B(i) of SHAKTI with 4 Central/State Gencos for an ACQ of 8.883 MT as on 31.3.201 9.

Further, linkage of 27.18 MTPA had been booked by the power plants in the auction of linkage conducted by CIL under the provisions contained under Part B(ii) of SHAKTI, out of which FSAs for 26.28 MTPA had been executed until 2018-19. The levellised discounts in tariff offered by these power plants for securing these coal linkages is expected to result in an annual saving of Rs.125 crores in tariff for the end users.

More long term demand through FSAs shall be added, as linkages are expected to be granted through the second round of linkage auction under Part B(ii) of SHAKTI and as grant of linkages under other provisions of SHAKTI are gradually being operationalized, the modalities of which are under finalization by the Ministry of Power / Ministry of Coal.

B. Auction of coal linkages to Non-Regulated Sector:

Fresh linkages to consumers in Non-Regulated Sector are granted through auction of linkages conducted in terms of the policy formulated by the government on 15.2.2016. The coal against the linkages secured in the linkage auctions are supplied under the FSAs to be executed for a period of 5 years, the tenure of which can be extended further for 5 years upon mutual consent. In case of Steel Sector, the FSA tenure has been increased from 5 years to 10 years, with provision of mutual extension by another 5 years.

In the events of Tranche-IV of the linkage auctions conducted during 2018-19, linkage of 33.18 MT/Per Annum was secured by the consumers at an average premium of 32.68% of the Notified Price. In the four tranches of auctions conducted between the years 2016-17 and 2018-19, total linkage of 78.36 MT/Per Annum had been granted at weighted average premium of 20.26% over the Notified Price. The additional premium shall be applicable throughout the tenure of these FSAs over the Notified Price applicable from time to time for the supplies.

3.3 Long term demand committed through FSAs:

Considering the FSAs executed earlier with the power plants under the provisions of NCDP and the FSAs executed under various provisions of SHAKTI, there exists operative linkage for a total quantity of about 572 MTPA with the Power Sector as on 31.3.2019, which is bound by long term supply commitments through FSAs.

The total commitments with Non Power consumers, including the ACQ against the operative FSAs executed under the earlier linkage regime under NCDP, linkages secured under the linkage auction policy for Non-Regulated Sector notified by the government on 15.2.2016 and the FSAs executed with State Nominated Agencies, stands at around 95 MT as on 31.3.2019.

To cope up with any scenario of deficit in availability of coal, supplies under the FSAs have been pegged at various levels of commitment.

3.4 Consumer satisfaction

- 3.4.1 Quality Management

For enhanced customer satisfaction, special emphasis has been given to Quality Management of coal from mine to dispatch point.

Now, all the consumers of CIL have the option for quality assessment of the supplies through independent third party sampling agencies. In order to monitor coal quality, a portal ‘UTTAM’ (Unlocking Transparency by Third Party Assessment of Mined Coal) has been launched by CIL to capture the entire cycle of sample. With the help of this portal, information of coal quality on regular basis will be accessible to both Coal Companies and Consumers.

As many as 46 coal testing laboratories across the subsidiary companies of CIL are now NABL accredited and accreditation process is underway in respect of another 09 labs.

As the result of conscious and continuous measures taken towards quality maintenance, the gap between the weighted average of declared and analyzed GCV of coal reduced remarkably to 275 Kcl/Kg in 2018-19 from 383 Kcl/Kg in 2017-18, narrowing down the variation well within one GCV band.

- 3.4.2 Linkage Rationalization

Linkage rationalization initiatives to reduce the cost of transportation of coal and cost of generation of power were continued during the year 201819 also. Under the ambit of the linkage rationalization policy notified by the government on 15.5.2018, sources of linkage for a quantity of 5.42 MT for the State / Central Gencos was rationalized in 2018-19, yielding a potential savings in transportation cost by about Rs.292 crs. Rationalization in respect of 2 IPPs is in the process, which upon implementation would result at a benefit of Rs.118 crs to end use consumers by way of reduction in power tariff as estimated by CEA. The total annual savings expected for the consumers due to linkage rationalization carried out until 2018-19 is around Rs.3700 crores.

3.5 Coal Beneficiation:

Presently, CIL is departmentally operating 16 Coal Washeries with a total coal capacity of 36.80 MTY. Out of which 12 are coking and balance 4 are non-coking with a capacity of 20.58 MTY and 16.22 MTY respectively. The total washed coal production from these existing washeries for the year2018-19 has been about 13 MTY.

To enhance the beneficiation capacity, CIL is setting up 18 new washeries with state-of-the-art technology in the field of coal beneficiation with an aggregate throughput capacity of 91.10 MTY. Out of these 18 new washeries, 9 are coking coal washery with a total capacity of 28.10 MTY. One coking coal washery with capacity of 1.6 MTY has been commissioned in 2018 on Build-Operate-Maintain concept. Another 9 washeries are being set up for non-coking coal with an aggregate capacity of 63 MTY.

3.6 Stock of Coal

The stock of coal (net of provisions) at the close of the year 2018-19 was Rs. 4138.24 Crores (earlier year Rs.4979.09 crores), which was equivalent to 0.53 month value of Net Sales (previous year 0.74 months). The company-wise position of stock held on 31st March 2019 & on 31st March 2018 are given in Annexure 7.

3.7 Trade Receivables

Trade Receivables i.e. net coal sales dues outstanding as on 31.03.2019, after providing Rs. 1721.76 crores (previous year Rs. 1742.91 crores) for bad and doubtful debts, was Rs. 5498.55 crores (previous year Rs. 6257.80 crores) which is equivalent to 0.47 months Gross Sales of CIL as a whole (previous year 0.59 months). Subsidiary-wise break-up of trade receivables outstanding as on 31st March 2019 as against 31st March 2018 are shown in Annexure 8.

3.8 Payment of Royalty, Cess, Sales Tax, Stowing Excise Duty, Central Excise Duty, Clean Energy Cess, Entry Tax & Others

During the year 2018-19, CIL and its Subsidiaries paid/adjusted Rs. 44,826.43 crores (previous year Rs. 44046.57) towards Royalty, Cess, Sales Tax and other levies as per details given in Annexure-9.

4. COAL PRODUCTION & FUTURE OUTLOOK

Raw coal production and production from underground and opencast mines.

Production of raw coal was 606.89 Mill Te during 2018-19 against 567.37 Mill Te during 2017-18. Production from opencast mines during 2018-19 was 94.98% of total raw coal production. Subsidiary wise production, production from underground and opencast mines and coki ng and noncoking coal production are disclosed under Annexure 10.

Washed Coal (Coking) Production- Subsidiary-wise production of Washed Coal (Coking) is given in Annexure 10A.

Overburden Removal- Company-wise overburden removal is disclosed in Annexure 10B.

FUTURE OUTLOOK

Based on the demand projection in ‘Vision 2030’ for coal sector in the country and subsequent demand projection on CIL, a Perspective Plan has been prepared to project production plan in medium and long term basis upto 2030-31 wherein CIL has envisaged to grow at the rate of about 7.6 % till FY 2024-25 to meet the coal demand of the country. To achieve projected growth in production, CIL has identified major projects and assessed their related issues.

The capital expenditure for the year 2019-20 has been set at Rs.10000 Crores. CIL has planned to invest substantial amount in diversification projects viz. Solar Power, Revival of Fertilizer Plants, acquiring coking coal assets in Australia and Canada, Coal Gasification, CBM, Rail Wagon procurement etc. during 2019-20.

5. POPULATION OF EQUIPMENT

The Population of Major Opencast Equipment (Heavy Earth Moving Machinery) as on 1.4.2019 and as on 1.4.2018 along with their Performance in terms of Availability & Utilization expressed as percentage of CMPDI Norm is disclosed in Annexure 11.

There are increase of 97 Dumpers in ECL, NCL & WCL on receipt of New Equipment ordered. CIL is planning to procure High Capacity Equipments of more than Rs. 7000 Crores viz. 6 Dragline, 31 Shovels, 300 Dumpers and 47 Dozers in next 3 years for enhanced coal production target in coming years.

6. CAPACITY UTILIZATION

During 2018-19, total volume of coal and overburden handled by CIL was about 1544 M.Cum. The overall system capacity utilisation of CIL thus worked out to be about 78% is given in Annexure-12.

7.0 PROJECT FORMULATION

7.1 Project Implementation:

a) Projects Completed During the year 2018-19:

5 coal projects, with a sanctioned capacity of 11.07 Mty and sanctioned capital of Rs 989.43 Crores have been completed during the year 2018

19. The details are enclosed as Annexure-13.

b) Project started Production during the Year 2018-19:

2 coal projects, with a sanctioned capacity of 11.20Mty and sanctioned capital of Rs 1502.65Crores have started during the year 2018-19 and Produced 2.91 Mty. The details are enclosed as Annexure-13.

c) Status of Ongoing Projects:

A total of 120 coal projects costing Rs. 20 Crores and above are in different stages of implementation. Out of which 66 Projects are on schedule and 54 Projects are delayed. The major reasons for delay in implementation of these projects are due to delay in obtaining EC, FC, possessions of land and issues related to R&R, contractual issues and evacuation facilities etc.

7.2 Projects Sanctioned (Costing Rs 20 Crores & above):

a) PR/UCE/RPR/RCE sanctioned by CIL & Subsidiary during 2018-19:

20 Projects with total rated capacity of 87.81 Mty and total investment of Rs. 11807.78 Crores have been approved during 2018-19. The details are enclosed as Annexure-13.

b) Non-Mining Projects Sanctioned by CIL & Subsidiary during 2018-19:

2 non-mining projects with a sanctioned capital of Rs. 6656.33 crores have been approved during 2018-19The details are enclosed as Annexure-13.

7.3 Key Strategies:

(i) Coal Evacuation:

In order to achieve the planned growth in coal evacuation, CIL has deployed a multi-pronged strategy, which is enumerated below. For Improved Coal evacuation and movement

- Strengthening of existing infrastructure viz. CHP, Siding and road etc. for coal movement

- Constant persuasion with Ministry of Railways for expeditious implementation of identified critical railway projects in potential coalfields.

CIL has planned to invest/invested in 6 Railway Projects for coal evacuation:

- 3 funded by Coal India limited

- 3 funded through SPVs

(Details available in MD & AR under the sub-head Marketing Out Look, head (Outlook)

(ii) Acquisition and Possession of land:

In all Subsidiaries of Coal India, the major portion of land is acquired under the Coal Bearing Areas (Acquisition & Development) Act, 1957. During 2018-19, notification U/S-9 (1) has been issued for about 1557 Ha and notification U/S-11 (1) has been issued for about 2507 Ha. During 2018-19, about 3398 Ha of land has been taken in physical possession in different subsidiaries of Coal India Limited.

(iii) WEB Based Online Monitoring System:

Monitoring of 80 coal mining projects costing more than Rs 150 Crores with Project monitoring software ‘MS Project’ have been started in Coal India limited. Regular interactions with subsidiaries is being done. Regular workshops are also being organised to train the executives in MS Project software.

Project Monitoring Division of CIL in association with CMPDI has launched MDMS (Mine Database Management System) portal to monitor the ongoing projects costing Rs 20 Crs and above in CIL. The system is fully operational and projects are being reviewed periodically through this portal.

Crucial issues are also being uploaded by CIL and its subsidiary companies on the e-CPMP Portal of MOC and MOC is vigorously following up with the state governments and other associated ministries by holding meetings with concerned officials to expedite EC & FC approvals.

7.4 One Billion Coal Production Programme

As stated above, the road map for 1 Billion tonne coal production has been firmed up based on demand projection as in the ‘Vision 2020-30’ document of CIL. For achieving these targets, CIL has envisaged to grow at the rate of 7.6% till FY 2024-25 and has also identified major projects along with their related issues.

8. CONSERVATION OF ENERGY

Conservation of energy always remains a priority area and CIL/Subsidiaries have extensively exercised various measures towards reduction in specific energy consumption.

Even though Coal Production has increased by 6.97% in 2018-19 compared to 2017-18, electricity consumption has reduced to 4503.31 Million Units vis-a-vis 4605.68 Million Units during 2017-18 with a reduction of 2.22% in absolute terms. In terms of total coal production Electricity Consumption during 2018-19 is 7.42 kWh/T vis-a-vis 8.11 kWh/T during 2017-18 with a reduction of 8.59%. However, in terms of composite production, Specific Energy Consumption (kWh/CuM) during 2018-19 is 2.78 kWh/CuM vis-a-vis 2.99 kWh/CuM during 2017-18 with a reduction of 6.89% from previous year.

Some of the salient measures taken by CIL/Subsidiaries for energy conservation are stated below :-

- CMPDIL has undertaken energy conservation studies in 2018-19 and carried out Diesel Audit & Benchmarking of specific diesel consumption in 94 opencast mines in different subsidiary companies of CIL revealed an aggregate saving potential of 17920 kilo litres/ year in diesel consumption.

- Electrical Audit and Benchmarking carried out in 05 mines (03 opencast mines and 02 underground mine) revealed an aggregate saving potential of Rs 4.85 crores.

- High wattage luminaries /conventional light fittings have been replaced with low power consuming LEDs of appropriate wattage in majority of the places for street lighting, office and other work places, townships etc., thereby resulted huge saving potential in electricity consumption. In 2018-19 more than 76000 LED lights in different capacity have been installed in different Areas.

- Almost all the areas of the subsidiary companies have maintained Power Factoras high as 95% during 2018-19.by installing Power Capacitors of appropriate kVAR rating. Incentive received by different subsidiaries on account of power factor improvement are -NCL -Rs 3.42 Crore ,EcL-Rs 29.63 Crore, BCCL -Rs 5.0 Crore, nCl - Rs 7.6 Crore, SECL -Rs 4.34 Crore, CCL -Rs 1.35 Crore, MCL-Rs 1.00 Crore CIL / Subsidiary Companies are also pursuing use of alternative energy sources. Various steps have been taken for utilizing solar power as alternate sources of energy, some of which are as stated below :

- In kilo-watt scale, roof top solar plants are in successful operation at various places since their commissioning. Some of these operating plants are at Corporate Office of Coal India Ltd, New town, Kolkata (160 kWp), CMPDIL HQ and regional institute (351kWp), different areas of ECL (159kWp), Different Areas of WCL (1097kWp), HQ office building ,CCL (477.5 kWp) and NEC(12 kWp) etc..

- In megawatt scale, one ground-mounted solar power plant (2.016 MWp) is in operation at MCL HQ premises since it’s commissioning on 13.10.2014.

9. CAPITAL EXPENDITURE

Overall Capital Expenditure during 2018-19 was Rs. 7311.46 crores as against Rs. 9334.55 crores in previous year. Capital Expenditure incurred during 2018-19 is 76.96% of BE (109.82% in 2017-18). Subsidiary-wise details of which are given in Annexure 14.

10. COAL VIDESH DIVISION

I. INITIATIVES FOR ACQUISITION OF COAL ASSETS ABROAD:

(A) Acquisition of coking coal assets abroad

Pursuant to the directives of the Board, CIL has undertaken initiatives for acquiring stakes in coking coal assets in Australia, Canada &USA, being the major sources for coking coal imports to India. As an outcome of such initiatives, a few potential coking/semi coking coal assets have been identified in Australia and Canada for due diligence. Tenders have been floated for selection of Investment Banker (IB)/Merchant Banker (MB) to render financial due diligence and transaction advisory services for framing of asset specific investment proposal. The IB/MB will be assisted by Technical Consultant, Legal Consultant and Tax & Accounts Consultant for due diligence in their respective domains for whose selection tenders will be floated in due course.

11. REVIVAL OF FERTILIZER PROJECTS:

(A) Setting up of natural gas based ammonia-urea complex at Gorakhpur, Sindri and Barauni

A Joint Venture company named Hindustan Urvarak & Rasayan Limited (HURL) comprising of CIL, NTPC, IOCL, FCIL and HFCL has been constituted with the following shareholding pattern:

CIL: 29.67%, NTPC: 29.67%, IOCL: 29.67% & FCIL/HFCI (combined):10.99% to set up natural-gas based 1.27 MTPA urea plant at the premises of closed fertilizer plants of FCIL at Gorakhpur (U.P.) & Sindri (Jharkhand) and that of HFCL at Barauni (Bihar).

The three plants are being set up at a total estimated cost of around Rs. 22,000 crore which is being financed by a debt-equity structure of 75:25. Financial closure for the entire loan amount has been achieved through a consortium of banks led by State Bank of India as Prime Lender. Subsequently, contracts were awarded to the respective successful bidders for setting up of the three plants on Lump-Sum Turn Key (LSTK) basis. Currently, construction works of all three projects are on track and the urea production is expected to commence in the beginning of 2021.

(B) Setting up of coal based ammonia-urea complex at Talcher

A Joint Venture Company named Talcher Fertilizers Limited (TFL) comprising of RCF, CIL, GAIL and FCIL has been constituted with the following shareholding pattern:

CIL: 29.67%, RCF: 29.67%, GAIL: 29.67% & FCIL:10.99% to set up a Surface Coal Gasification based integrated fertilizer complex using coal from nearby Talcher coalfields. Coal blended with pet-coke upto 25% shall be gasified to produce syngas, which shall be converted into Ammonia and subsequently to 1.27 Million Tonnes of neem coated Urea annually.

TFL Board approved coal gasification technology of M/s Air Products (earlier M/s Shell) for the proposed plant. Policy for dispensation of subsidy to coal gasification based urea plants is under progress at NITI Aayog. Meanwhile, Dept. of Fertilizers, GOI has issued a Comfort Letter assuring that policy for payment of subsidy for the urea produced through coal gasification route will provide suitable support for ensuring 12% post-tax project IRR.

Hon’ble Prime Minister of India has laid the Foundation Stone of the plant at Talcher on 22.09.2018.

M/s Projects & Development India Limited (PDIL) is the Project Management Consultant (PMC) for this project. The project is being implemented on partial Lump Sum Turn Key (LSTK) basis. LSTK tenders for major plants (Coal Gasification& Ammonia-Urea) are under evaluation. NIT for Captive Power Plant and other Off-sites &Utilities are under preparation by the Consultant. Currently, all pre-project works such as Commissioning of Water System, Supply-cum-Erection for Power Works, Land Development etc. are progressing in full swing.

Ministry of Coal has allotted 50% of North of Arkhapal-Srirampur (Northern Part) coal block to TFL. Detailed Exploration, Preparation of Geological Report, Preparation of Mining Plan & Project Report for allotted Coal Block is in progress by CMPDI.

III. DIVERSIFICATION IN COAL TO CHEMICAL SECTOR:

(A) Setting up of Coal to Methanol plant at Dankuni Coal Complex (DCC)

In pursuance to initiatives towards development of Clean Coal Technology and alternate use of coal, CIL is exploring the possibilities for setting-up a coal based Methanol plant in the premises of Dankuni Coal Complex (DCC) near Kolkata. Coal sourced from Raniganj coalfields shall be gasified to produce syngas which shall be subsequently converted into methanol. Based on the Capex and Opex data and other technical information provided by potential technology suppliers shortlisted through global EOI, M/s. Project & Development India Ltd. (PDIL) has prepared the Pre-Feasibility Report (PFR) for setting up of a 2050 MTPD (0.676 MTPA) capacity Coal to Methanol plant. The PFR was deliberated by 362nd CIL Board held on 28.04.2018 and the Board agreed in-principle to go ahead with this clean-coal initiative. The Board also accorded approval for engagement of Technical Consultant through tendering for carrying out various Pre-Project activities and Pre-Award Consultancy Services upto preparation of Detailed Feasibility Report(DFR). In compliance of the CIL Board decision, M/s Projects & Development India Limited (PDIL) has been selected as the technical consultant through open e-tendering process.

11. Master Plan for dealing with fire, subsidence and rehabilitation

The Master Plan for dealing with fire, subsidence and rehabilitation in the lease hold of Bharat Coking Coal Limited (BCCL) and Eastern Coalfields Limited (ECL) was approved on 12th August 2009 by Govt. of India with an estimated investment of Rs. 7112.11 crores for Jharia Coalfields and Rs.2661.73 for Raniganj Coalfields. Implementation period has been delineated as 10 years for ECL & 12 years for BCCL. Eighteen (18) High Powered Central Committee (HPCC) meetings were conducted till date, under the chairmanship of the Secretary (Coal), MoC to review the activities of implementation of Master Plan. Jharia Rehabilitation and Development Authority (JRDA) and Asansol Durgapur Development Authority (ADDA) are the implementing agency for rehabilitation of non-BCCL & non ECL people under Master Plan.

A. Summarized Status of Implementations of Raniganj Master Plan (in the leasehold of ECL) are as below:

There are 03 unstable locations under ECL which were already vacated. As per the demographic survey report provided by ADDA, around 30,000 non ECL families are required to be rehabilitated from unstable locations. Total 12,976 flats in 811 Blocks has been proposed in the DPR prepared by Housing Department, Govt. of WB. Construction of 160 flats at Bijojnagarmouza have been started from March, 2017 which schedule to be completed by May 2019. Further, construction of 12,816 flats have been started from March, 2018 .Construction of 372 blocks are in progress till date .

Regarding infrastructure development activity i) ECL has been assigned to CIMFER for stability assessment of rail track in connection of Diversion of Andal -Sitarampur Railway line from unstable location. , ii) For assessment of stability of the area of NH-2 Bye-pass. ECL has been awarded the job to IIT, Kharagpur. Iii) For diversion route of Gorangdih -Begunia colliery, district level purchase committee has been constituted by state govt. to expedite the possibility of acquisition of land at Raiyati .

B. Summarized Status of Implementations of Jharia Master Plan (In the leasehold of BCCL).

As per Master Plan, total of 54,159 families in 595 sites which are to be surveyed, have completed survey of 595 sites for 91,879 families of encroachers by CIMFR, ISM, whiz Mantra and JRDA. Total 7,639 houses have been constructed out of 15,852 houses for rehabilitation of BCCL families, in which 3,878 families have been shifted till March 2019. Remaining 8,213 houses are in different stages of construction.

For rehabilitation of non BCCL families, 6,352 houses have been constructed by JRDA out of 10,352 houses in which 3,075 families have been shifted. Balance 4,000 houses are under different stages of construction. Regarding Status of fire dealing, NRSC has been submitted study report, where the surface fire area has been reported as 3.28 Sq km, against the earlier 8.9 sq km mentioned in the Master Plan.

12 ENVIRONMENTAL MANAGEMENT

12.1 Management System Standards

CIL HQ has obtained certification against ISO 9001, 14001 and 50001 (Quality Management, Environment Management and Energy Management System) from Bureau of Indian Standards (BIS). As on 31st March 2019, four of our Subsidiaries, ECL, CCL, NCL and MCL are certified for Integrated Management System (ISO 9001, 14001 and OHSAS 18001). CMPDI HQ and its seven RIs are certified for ISO 9001:2015.

12.2 Pollution Control Measures and their Efficacy

CIL has put utmost importance to protect environment by practicing and following sustainable mining practices right from mine planning stage. Various pollution control measures and initiatives are taken up concurrently with mining operations for maintaining acceptable/permissible limits of major physical and chemical attributes of environment namely air, water, hydrogeology, ground vibrations, noise, land & nearby community.

(A) Air Pollution and its Control Measures:

To control and reduce dust generation during drilling, blasting, loading and Coal transportation, CIL has taken up various initiatives based on the Environmental Management Plan (EMP). This EMP is prepared keeping in mind the impact on existing environment and forest due to coal mining projects through Environment Impact Assessment (EIA) study of each project.

Mist spray systems along conveyor routes, Mobile water sprinkling, automatic sprinklers have been provided to mitigate air pollution & its control measures. Some of the important initiatives taken by CIL like, a) Loading of coal by series of belt conveyors, silo, and transportation by tarpaulin covers trucks and railway wagons, b) Blacktopping, repairing and strengthening of haul roads, c) Development of wind break and vertical greenery system, d) Introduction of Surface Miners and Continuous Miners in opencast & U/G mine respectively.

(B) Mine Water Management:

Mine Discharge Treatment Plants (MDTP) are installed in mines for treatment of mine water which is pumped out on surface for second phase treatment. Treated mine water is then used partly within the mine premises for dust suppression, firefighting, plantation, washing etc. As per need of the community, a part of remaining treated mine water is supplied to the nearby villages for drinking & irrigation purpose.

In order to assess the impact of mining activities on ground water, quarterly monitoring of ground water levels is being carried out in and around of the mine lease hold area. For ground water recharge within mine premises and nearby villages, initiatives like rainwater harvesting, digging of ponds/development of lagoons, de-silting of existing ponds/tanks etc have been taken .

Regular monitoring of mine, workshop and domestic effluent is carried out as per rule. Reports of the same are regularly submitted to SPCBs and MoEF&CC.

(C) Noise Pollution Control Measure:

For control of noise pollution, various measures are adopted like Proper maintenance of equipment, Green belt development around the mine and residential area, blasting in only day time and use of ear muff / ear plugs at noisy areas.

(D) Land Reclamation:

Reclamation of the mined out areas and the external OB dumps are major environmental migratory activities taken up by CIL. Reclamation of mined out areas are being done as per the Environmental Management Plan (EMP) and Mine Closure Plan (MCP) which are approved by MoEF&CC. Top soil preservation, storing and use in the plantation areas are being done in the opencast mines. Concurrently reclamation and rehabilitation of mined out areas are taken up for gainful land use. After technical reclamation is completed, plantation is carried out which is termed as biological reclamation.

- Eco-restoration: For effective Bio- reclamation of disturbed land, scientific studies are carried out to select suitable species of plants for each coalfield and sustainable sequence of reclamation from grass to shrubs, to trees are being done. Forest Research Institute (FRI) have been engaged by CIL for sharing their expertise in the field of eco-restoration in the reclaimed areas. ECO restoration sites have been developed in BCCL, with technical guidance of FRI.

- Eco-park in Reclaimed land: Eco Parks have been developed in many of the mined out areas of CIL like Gunjan Park of ECL, AnanyaVatika of SECL, Nigahi of NCL, Saoner of WCL, KayakalpVatika, Rajarappa Eco Park in CCL etc.

- Monitoring of Reclamation: The land reclamation and rehabilitation operations are being monitored by Satellite Surveillance. 52 major OCPs excavating more than 5 Mm3 (Coal OB) per annum are being monitored every year while remaining OCPs, excavating less than 5 Mm3 (Coal OB) per annum, are being monitored every 3rd year. The study during 2018-19 shows that, in 52 major OCPs have reclaimed area of 62.95% and active mining area is only 37.05% of the total excavated area. In addition, CIL is conducting vegetation cover mapping through satellite surveillance in every 3 years.

- Mine Closure Plan (MCP): MCP is an integral part of the project report prepared by CMPDIL for Coal mines. This progressive mine closure plan also forms a part of the EIA/EMP prepared and submitted to MOEF&CC for Environmental Clearance. As on 31st March, 2019, Rs. 557.52 Crores have been reimbursed from the Escrow fund and balance of Rs. 6678.63 Crores have been deposited in the 455 Escrow accounts.

(E) Strive for continual improvement in environmental performance.

CIL has completed third party environmental audit of 20 OC mines of CIL by engaging Indian Council of Forestry Research & Education (ICFRE), Dehradun.

13. INFORMATION AND COMMUNICATION TECHNOLOGY IN CIL

CIL and its subsidiaries have undertaken the following key IT initiatives as on date:

1. Coal India has taken up implementation of ERP at CIL, MCL & WCL in the 1st phase.

2. To benefit its regular customers, as well as Power Sector Customers CIL has introduced mobile App like “SEVA” (Saral Eendhan Vitaran App) and “GSKV”(Grahak Sadak Koyla Vitaran).

3. CIL has also introduced mobile App “Uttam” for monitoring Coal Quality by its customers, “Khanan Prahari” to check illegal coal mining, “E-Awas” to manage quarter allotment, maintenance & prevent illegal occupancies, “Coyla” (Coal Yield Analysis) app to monitor production and dispatch data of all mines.

4. ”CLIP” Contract Labour Information portal has been launched by CIL to keep an eye on fair wage payment to Contractor workers deployed at various locations.

5. ”MDMS” (Mine Data Management System) portal has been designed and launched by Project Monitoring Division of CIL and CMPDI, Ranchi to store all the salient features of PR and data of ongoing projects and their performance against PR provision.

6. CIL Executive defined contributory Pension Scheme 2007 of all CIL executives is managed through an on-line Web Application.

7. CIL Asset data capture is being carried out through an on-line Web Application.

8. As a significant contribution towards “Digital Green India”, E-office solution from NIC has been implemented in CIL and its subsidiaries to ensure paperless office.

9. Under the project “DDMA”(Document Digitization and Archival Management) Coal India Ltd. has digitized more than 80 Lakhs documents at its Corporate Hq.

10. Biometric attendance system has been introduced in CIL and its subsidiaries.

11. Existing operational IT initiatives of Coal India include:

- Procurement of Goods, Works and Services in Coal India and its subsidiary companies above Rs 2 lakh value is being done through E-procurement mode whereas tenders above Rs 1 Crore value are finalised through e-Tender mode with provision of reverse auction in Coal India to ensure greater transparency and better cost effectiveness during tender procedures in goods, works and services.

- E-auction of coal is operational through service providers of CIL.

- Performance Evaluation, Vigilance Information and Annual Property Return of executives in Coal India is carried out through web enabled systems. Web Applications for Production Information System, Safety Information System, CIL-CSR, HRMS are also in operation.

- Next Gen Firewall systems has been inducted to augment the LAN immunity against external breach.

- Leveraging technology in the area of Production and Dispatch through various IT initiatives viz GPS Based Vehicle Tracking Systems, GPS-GPRS Based route marking, RFID Based Vehicle authentication Systems, Boom barrier based automatic Gate control System and CCTV based monitoring system have been installed at various Rail/Road weighbridge, Entry-Exit Gates of collieries, Railway-Sidings, Coal-Heaps, workshops, Stores. As of now, more than 800 such integrated installations at various subsidiaries are in operation.

- Apart from Colliery to Area and Area to Subsidiary HQ recently a 3rd level of CCTV Monitoring Centre has been set-up at CIL Kolkata encompassing the surveillance reach to a more wider periphery of Coalfield Areas spread over various subsidiary companies.

- CIL has obtained recertification of its Data Centre for being compliant to Rated 3 standards.

- CIL is operating Operator Independent Truck Dispatch (OITDS) with high speed Data and Voice communications in 11 big Opencast Mines to ensure optimal usage of shovel, Dumpers and associated HEMM to curtail loss of time, fuel and manpower to enhance production and productivity of the mines.

- CIL successfully accomplishes every day a sizable number of in-house Video conferencing sessions involving all its Subsidiaries, MoC, other PSUs, Railways, Power Sector other Govt Organisations as per the schedule with recording facility as an important feature of its office automation. Additional VC room at all Subsidiaries are available for simultaneous multiple VC sessions amongst CIL HQ, Subsidiaries and other location across the globe.

- In order to improve coal dispatch, electronic weighbridges are connected with Central Servers of respective subsidiaries and initiatives have been taken up for implementing online generation of Challans/invoices.

- State-of-the-art IP based EPABX with support of convergent technology for voice and data, Radio communication System and UG communication system at different locations of Coal India and its subsidiary companies are operational in order to meet the business process requirements.

14. MINES SAFETY

14.1: Statutory Frame-work for safety in coal mines:

Coal mining, world over, is highly regulated industry due to presence of several inherent, operational and occupational hazards and associated risks. Coal Mine Safety Legislation in India is one of the most comprehensive and pervasive statutory framework for ensuring occupational health and safety (OHS). Compliance of these safety statutes is mandatory.

In India, the operations in coalmines are regulated by the Mines Act- 1952, Mines Rules -1955, Coal Mines Regulations-2017 and several other statutes framed there under. Directorate-General of Mines Safety (DGMS) under the Union Ministry of Labour & Employment (MOL&E) administers these statutes. Other major Act/Rule are applicable in coal mines are the Electricity Act- 2003, Central Electricity Authority (measures rel. to safety & supply) Regulations - 2010 ,Indian Explosive Act-1884 & Explosive Rules - 2008, Indian Boiler Act -1923, the Employee’s Compensation (Amendment)Act-2017 and the Factories Act - 1948 Chapter -III & IV.

14.2: Safety Policy of CIL:

To implement CIL Safety Policy, the following are provided:

1. Provision of adequate funds for mine safety.

2. Deployment of adequate numbers of trained manpower for ensuring safety in mining operations.

3. A well-structured and multi-disciplinary Internal Safety Organization (ISO) established in all the subsidiaries of CIL to monitor implementation of CIL’s Safety Policy.

4. Continuous and sustained improvement in technological inputs for mining operation.

5. Support of scientific planning and R&D activities made available through using in-house expertise of CMPDIL and in collaboration with the other scientific agencies and reputed educational institutes.

6. Ensuring workers’ participation in every forum for monitoring safety in mines.

14.3: Accident Statistics

Analysis of Accident Statistics in CIL - Accident statistics is the relative indicator for safety status in mines. Over the years, the safety performance of CIL has improved significantly.

This improvement in mine safety in CIL is attributed to the following contributing factors:

- Collective commitment and synergetic collaboration of the Management, Employees, the regulator (DGMS) and Trade Unions.

- Use of state-of-the-art technology in the field of Mining Methods, Mining Machineries and Safety Monitoring Mechanism.

- Continuous improvement in knowledge, skill and responsiveness of workforce through imparting excellence safety training and persistent safety awareness drives.

- Constant vigil, round-the-clock supervision and supports from various agencies.

Salient features of continuous and sustained improvement in CIL’s safety performance is disclosed in following graphical representation and also in Annexure-15.

14.4: Measures for improvement of Mine Safety in 2018

CIL has vigorously pursued several measures in the year 2018, along with, the on-going safety related initiatives, apart from compliance of statutory requirements for enhancing safety standard in mines of CIL and its Subsidiaries, which are given below:

a) Principal Hazards Management Plans (PHMPs)

b) Safety Management Plans (SMPs)

c) Standard Operating Procedures (SOPs)

d) Safety audit of all mines

e) Conducting Special Safety Drives on different Safety Issues

f) Participation in International Mines Rescue Competition (IMRC) 2018 held at Yekaterinburg, Russia and awarded “Most Active Team” Award in (IMRC) 2018.

g) Observation of “ILO’s World Day for Safety and Health at Work” in CIL (HQ) as well as all subsidiary HQs, Areas and mines.

h) Foreign Technical Training Programme in China on “Coal Mine Safety Management for CIL Executives and Exposure to Best Practices in China”.

i) The 17th meeting of the National Dust Prevention Committee (NDPC) was held on 6th September, 2018 in Kolkata.

Apart from the above specific actions, the following are on-going measures for improving safety standards:

1. Emphasis on adoption of the state-of-the art technology in suitable geo-mining locales.

2. Adoption of the state-of-the art mechanism for Strata Management

3. Mechanism for monitoring of mine environment

4. Strengthening Water Danger Management

5. Training on Mine Safety & Skill Upgradation

15 MINE EMERGENCY RESPONSE SYSTEM

15.1 Emergency Plan

Emergency Action Plans has been prepared which includes

- Mock Rehearsals

- Demarcating Emergency Escape Routes in below ground.

- Check list prepared to deal emergency in mine.

- Flow Chart prepared to deal crisis.

15.2 Mine Rescue Services in CIL: CIL is maintaining a well-established Rescue Organization .

16 HUMAN RESOURCE DEVELOPMENT

Human Resource is at the centre of Coal India’s pursuit to achieve the targeted coal production. During 2018-19, different training programs were organized at subsidiary Headquarters, Training Centres, Vocational Training Centre and also at CIL’s own in-house training facility-Indian Institute of Coal Management, Ranchi. These training programs were organized after accessing the training needs in the respective category of employees within the subsidiary.

16.1 Training and Development of Human Resource:

In FY 2018-19, a total of 1,07,077 employees of CIL & its subsidiaries have been trained in house including 14,526 executives. In addition, 5467 employees have been trained in premier institute like IITs, IIM etc which includes 4,611 executives.

In order to develop Human Resource to meet the challenges of future, 6,24,815 man-days of training were achieved for upgrading employee’s knowledge and skill. The total training man-days at CIL registered a growth of 3.73% over last year. In addition, a total of 46378 contract workers were also trained in the financial year.

16.2 Special Initiatives :

- Ten executives were sponsored for a nine-day training program on Mine Safety which was held in Henan polytechnic university, China.

- Two executives attended a three-week training program on Seismic vibrator which was held in France.

- Ten executives attended a certified course on Project Management and secured the Team Excellence Award amongst 34 teams.

16.3 Engagement of Apprentices:

During the year 2018-19, CIL and its subsidiaries engaged a total of 7606 apprentices vis-a-vis 2813 apprentices in FY 17-18 through NATS and NAPS portals.

17 RECRUITMENT

During the financial year 2018-19, CIL has inducted Management Trainees & Medical Executives through direct recruitment to fill up the vacancies. The details of Executive manpower influx in CIL for F.Y. 2018-19 are as follows:

Designation (Grade)

Nos. appointed

Management Trainee (E2 Grade)

224

Medical Specialist (E3 / E4 Grade)

97

Sr. Medical Officer (E3 Grade)

72

Sr. Officer (Mining) (E2 Grade)

175

Total

568

With the recruitment of 169 Medical Executives, the strength of Doctors in the company has increased by 17% (approx.). Similarly, with the promotion / appointment of 175 Statutory Personnel in Executive cadre in Mining discipline, the strength of Statutory posts is increased by 3.5% (approx.).

18. MANPOWER

18.1 The total manpower of the Company including its subsidiaries as on 01.04.2019 stood at 2,85,479 against 2,98,757 as on 01.04.2018. A detailed Subsidiary wise position of Manpower is given in Annexure 16.

18.2 The presidential directives with respect to manpower for Scheduled Caste/Scheduled Tribes/OBC have been implemented in all the subsidiaries/units of Coal India Limited.

The representation of SC/ST employees in total manpower of CIL and its Subsidiary Companies as on 01.01.2017, 01.01.2018 and01.01.2019 is given below: -

As on

Total Manpower

Scheduled Caste

Scheduled Tribe

Nos.

Percentage

Nos.

Percentage

1.1.2017

313809

70513

22.47

39721

12.66

1.1.2018

302006

57761

19.13

41373

13.70

1.1.2019

288687

54578

18.91

43560

15.09

19. INDUSTRIAL RELATIONS AND EMPLOYEES’ PARTICIPATION IN MANAGEMENT

The Industrial Relations scenario in CIL & its subsidiaries during the financial year remained cordial. Joint Consultative Committees and other Bipartite Committees at Unit/Area levels and Subsidiary (HQ) levels continued to function in harmony. Meetings of Bilateral Committees were held at regular intervals at CIL to address IR, Welfare, Productivity/Production, Safety etc. issues. Except for few minor issues of local nature at a few subsidiaries, there has been no major IR problem in the company.

20. EMPLOYEES’ WELFARE AND SOCIAL SECURITY SCHEMES

The Welfare activities of Coal India Limited for welfare of its employees and their families are given below:

20.1 Housing facilities

- The ceiling of House Building Advance amount has been increased from Rs.2.5 lakh to Rs.30 lakhs per employee subsuming the advance amount under CIL Furniture and Household Goods Purchase Scheme.

- CIL Furniture and Household Goods Purchase Scheme has been formulated under which recoverable advance to an employee is available for purchases as per their eligibility ranging from Rs.2 lakhs to Rs.5 lakhs.

20.2 Water supply

Supply of water is done after proper treatment and several RO plants are also existing to cater to the needs of residential colonies of the company.

20.3 Educational Facilities

The subsidiary companies of CIL have been providing financial assistance and infrastructure facilities to schools operating in mining areas like DAV, KendriyaVidyalaya, Delhi Public School and other educational institutions run by the State Government to provide quality education to the employees’ children. Through Scholarship Schemes, Cash Awards and Certificates of Appreciation, meritorious wards of employees are recognized for higher academic performance.

20.4 Medical Facilities

CIL is extending medical facilities to the employees and their families through various medical establishments from the dispensary level to the Central and Apex hospitals in different parts of the coalfields. For specialized treatment, where the expertise/ facilities is not available, they are also referred for treatment outside in the empanelled hospitals.

20.5 Statutory Welfare Facilities

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 mines such as Canteen, Rest Shelters etc.

20.6 Non-Statutory Welfare Measures

Various measures are taken to improve the quality of life of employees by encouraging them to form and run Co-operative Stores/ Credit Societies, bringing banking facilities closer to their residential colonies and providing various sports facilities as well as presence of Holiday Homes in 6 cities of country.

20.7 Empowerment of Women

- As on 01.04.2019, 19,779 female employees were working in CIL and its subsidiaries. The Forum of Women in Public Sector (WIPS) was established under the aegis of Standing Conference of Public Enterprises (SCOPE) on 12th February, 1990 which came into existence at CIL in the same year to empower women employees for working efficiently. As warranted under Prevention of Sexual Harassment Act, suitable mechanisms are in place to address such issues.

- The company, in addition to maternity benefits provided under the Maternity Benefit Act, 1961, provides 730 days of Child Care Leave to women employees, subject to other conditions as stipulated in the policy.

21 TREE PLANTATION / AFFORESTATION

Plantation and Green belt are developed through extensive tree plantation programme every year by the Subsidiaries of CIL. Avenue plantation, plantation on the OB dumps, plantation in and around mines, residential colonies, and available government land are undertaken in the existing as well as the new projects. The subsidiaries of CIL have planted around 18.1 lakh saplings during 2018-19 in an area covering 733 Ha.

22 PROGRESSIVE USE OF HINDI

22.1 Coal India Limited is committed to implement the provisions of the Official Languages Act, Rules and Regulations and all activities are held regularly. During FY 18-19, the company has achieved the mandated usage of Hindi language as per the provisions of the Act.

22.2 Following awards were conferred upon CIL by various Government organisations:

- 1st Prize of TOLIC (PSUs), Kolkata: Under the Rajbhasha Award Scheme of the Govt. of India.

- Active Participation Award awarded by His Excellency Shri Kesari NathTripathi, the Governor of West Bengal.

23. VIGILANCE SETUP

The anti-corruption activities in CIL and its Subsidiary Companies have been institutionalized by setting up Vigilance Departments headed by a Chief Vigilance Officer (CVO), appointed by the Govt. of India in consultation with Central Vigilance Commission (CVC) on tenure basis, drawn from various government services.

During the year 2018-19, 44 Intensive Examination of Works/Contracts(Major works) were undertaken by CIL(HQ) and its subsidiary companies. In addition,288 Surprise checks were carried out. Besides, 92Departmental Inquiries were disposed of which resulted in punitive action against 148 officials. Such examinations/investigations have resulted into initiation of various system improvement measures.

In accordance with the directives of the Central Vigilance Commission, the Vigilance Awareness Week was observed in Coal India Limited, IICM-Ranchi, North Eastern Coalfields-Margherita& Regional Sales Offices across the country w.e.f. 29.10.18 to 03.11.18 emphasizing the theme of this year for Vigilance Awareness Week “Eradicate Corruption: Build a New India”.

Vigilance Awareness Week was observed by organizing various activities in order to generate awareness, educate and discuss transparency among officials /stake holders as well as general public to arrest the root cause & threat of corruption, to promote good governance and envisage the theme of this year. The activities were organized both in-house and as outreach programs in Schools/Colleges, across Kolkata, in Ranchi, in Margherita, Assam and also as Gram Sabha in different districts of West Bengal and NEC Projects, focusing this year’s theme of Vigilance Awareness Week.

Implemented Preventive Vigilance/ System Improvement

i) SOP has been issued clearing specifying the role and responsibility of different level of executives for implementation of IT initiatives.

ii) Suggestion has been given to management to issue guidelines for including/ excluding GST for evaluation of BID sin tender.

System Improvement Studies - Studies were taken in following areas :-

Sl.

Subject of Study

1

Measurement of OB and Coal in outsourced patches

2

CSR Policy of CIL and monitoring of projects.

3

E-surveillance through VTS, CCTV, Weigh-Bridge connectivity, RFID & other IT initiatives.

4

Implementation of Bill tracking system.

5

Complaint handling System.

6

Procurement policy at CIL & subsidiaries and Standardization of NITs and modification of Purchase Manual.

7

Recruitment process in CIL & subsidiaries.

8

Policy for compassionate appointment of medical unfit cases.

24 PARTICULARS OF EMPLOYEES

Employee received remuneration either equal to or in excess of the limits prescribed under Rule 5(2) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 during 2018-19 is given in Annexure 17. Details of Rule 5(1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 on disclosure in the Board Report with reference to remuneration of Managerial Personnel of Top 10 employees are annexed to the Report.

25. BOARD OF DIRECTORS

Shri Anil Kumar Jha was appointed as Chairman cum Managing Director (CMD) w.e.f. 18.05.2018 (A/N). Shri Suresh Kumar, Addl. Secretary, MoC was holding an Additional Charge of CMD from 23.04.18 till 18.05.18 and Shri Gopal Singh, CMD,CCL was holding an Additional Charge of CMD from 01.09.17 till 20.04.2018. Shri S.N.Prasad, Director (Marketing), Shri Binay Dayal Director (Technical) and Shri R.P. Srivastava Director (P &IR) were on the Board throughout the year. On superannuation, Shri C.K. Dey Director (Finance) ceased to be Director (Finance) w.e.f 01.10.18 and Shri S.N.Prasad, Director (Marketing) was given an additional charge as Director (Finance) from that date and he continued till 9th JulyRs. 2019. Shri Sanjiv Soni has assumed the charge of Director (Finance), CIL from 10th JulyRs. 2019 .

Shri R.K.Sinha, Joint Secretary, MoC, Mrs Reena Sinha Puri, JS &FA, MOC were on the Board throughout the year as Government Nominee Directors.

Ms. Loretta Mary Vas, Dr S.B. Agnihotri, Dr D.C. Panigrahi, Dr. Khanindra Pathak and Shri Vinod Jain were appointed as Independent Directors on the Board on 17.11.15 for a period of 3 years. On expiry of their term, all the 5 directors ceased to be Independent Directors w.e.f. 16th NovRs.18. They were re-appointed as Independent Directors w.e.f 17th NovRs.18 for a period of one year. Shri V.K.Thakral and Shri B.L.Gajipara were Independent Directors on the Board throughout the year.

Shri R.R. Mishra, CMD, WCL and Shri S. Saran, CMD, CMPDIL continued throughout the year as permanent invitees. Shri Anurag Addl. Member (Traffic transportation), Railway Board was permanent Invitee from 19th JunRs.18 .

Your Directors wish to place on record their deep sense of appreciation for the valuable guidance and services rendered by the directors during their tenure, who ceased to be the Directors during the year.

In terms of Article 39(j) of the Articles of Association of the Company, one third of retiring Directors are liable to retire by rotation shall retire at the ensuing Annual General Meeting and they are eligible for reappointment.

The Board of Directors held 21 meetings during the year 2018-19.

26. Composition of Audit Committee

CIL in pursuance of excellence in corporate governance formed an Audit Committee of its Board of Directors w.e.f. 20-07-2001 and the present Audit Committee was re-constituted by the Board in its 376th meeting held on 30th NovRs.18 consists of four Independent Directors, one Government Nominee, one Functional Director, one Invitee and one permanent invitee.. Details are disclosed in Corporate Governance Report under point number 3.1.

27. Composition of CSR Committee

Details are disclosed in Corporate Governance Report under point number 3.6.

28. Declaration given by independent directors under sub-section (6) of Section 149.

The following independent directors have given their consent during 2018-19 that they meet the criteria of independence as stipulated in subsection (6) of Section 149 of the Companies Act 2013.

i. Ms. Loretta M Vas

ii. Dr. S.B.Agnihotri

iii. Dr. D.C.Panigarhi

iv. Prof. Khanindra Pathak

v. Shri Vinod Jain

vi. Shri V.K.Thakral

vii. Shri B.L.Gajipara

Further as required under Section 149(7) of the Companies ActRs.13 and Regulations 25(8) of SEBI (LODR) Regulations 2015 as amended, all the Seven (7) Independent Directors have submitted declaration that he/she meets the Independence Criteria as provided in Clause (b) of Regulation 16(i) of LODR 2015 and they are not aware of any circumstance or situation, which exist or may be reasonably anticipated that could impair or impact his/her ability to discharge duties with an objective independent judgment and without any external influence. Further as required under Regulation 25(9) of LODR 2015 as amended, the Board of Directors of the Company took on record the declaration and confirmation submitted by the Independent Director under Regulations 25(8) after undertaking due assessment of the veracity of the same.

29. Reappointment of Independent Directors- Section 149(10)

Ms. Loretta Mary Vas, Dr S.B. Agnihotri, Dr D.C. Panigrahi, Dr. Khanindra Pathak and Shri Vinod Jain were appointed as Independent Directors on the Board on 17.11.15 for a period of three years. On expiry of their term all the 5 Directors ceased to be Independent Directors w.e.f. 16th NovRs.18. They were re-appointed as Independent Directors w.e.f 17th NovRs.18 for a period of one year.

30 Recommendation of Audit Committee by the Board.

All the recommendations made by Audit Committee were accepted by the Board.

31. Company’s policy on directors ‘appointment and remuneration including criteria for determining qualifications, positive attributes, independence of a director and other matters provided under sub-section (3) of section 178.

MCA vide Notification dated 5th JuneRs.2015 has exempted the above for Government companies.

32. Remuneration policy of directors, KMPs and Senior Management - Section 178(4).

MCA vide Notification dated 5th JuneRs.2015 has exempted the above for directors of Government companies.

33. A statement indicating the manner in which formal annual evaluation has been made by the Board of its own performance and that of its committees and individual directors.

MCA vide notification dated 5th JulyRs. 2017 has exempted evaluation mechanism for Govt. Companies. However, Company has prepared a policy for formal annual evaluation of Independent Directors, Board, Committees of the Board, Executive Directors and Non Executive Directors and got it approved by Board in its 385th meeting held on 30th MayRs.19.

34. Contracts or Arrangements with Related Parties

Related party transactions made with the subsidiary companies and that all such transactions were exempted under Regulation 23(5)(a) and (b) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 being transactions between two government companies and transactions entered between a holding and its wholly owned subsidiaries whose accounts are consolidated with holding company and placed before the shareholders at the general meeting for approval. However, the remuneration paid to Key Managerial Personnel is being disclosed separately in point no VI of Annexure 18.

35. Loan, guarantees or investments by a company under section 186 of the Act

Loan, guarantees and investments made by Coal India Limited in terms of Section 186 of the Companies Act 2013 is enclosed in Annexure 19.

36. Familiarization programme of Board Members.

Board of Directors are fully briefed on all business related matters, associated risk, new initiatives etc. of the company. The Board of directors were also briefed about the provisions of Companies Act 2013, Prohibition of Insider Trading Regulations, 2015 as emended and SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015. As per Regulation 25 of SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015, the listed entity shall familiarize Independent Directors through various programmes about the listed entity, including the following:

(a) Nature of the industry in which the listed entity operates;

(b) Business model of the listed entity;

(c) Roles, rights, responsibilities of Independent Directors; and

(d) Any other relevant information.

As per regulation 46 of SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015 the details of the familiarization programmes given to Independent Directors is to be disclosed on the website of the company. The same is disclosed on company’s website. And link is given hereunder:-

https://www.coalindia.in/DesktopModules/DocumentList/documents/Familiarization%20Programmes%20imparted% 20to%20Independent% 20Directors%20for%202018-19%20and%20cumulative%20till%20date.pdf

37. Sexual Harassment of Women at the Workplace

The company has in place an Anti-Sexual Harassment Policy in line with the requirements of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints Committee (ICC) are working at every subsidiary and office of Coal India Limited to redress complaints regarding sexual harassment. All women employees (permanent, contractual, temporary, trainees) are covered under the said policy.

No sexual harassment complaint was received during the year 2018-19.

38. DIRECTORS’ RESPONSIBILITY STATEMENT

In terms of Section 134(3)(c) of the Companies Act, 2013, read with the Significant Accounting Policies at Note-2 and Additional Notes on Accounts at Note-38 forming part of:

1. CIL (Standalone) Accounts

2. CIL (Consolidated) Accounts

It is confirmed that:

a) In the preparation of the Annual Accounts, the applicable Accounting Standards have been followed and that no material departures have been made from the same;

b) The Accounting Policies have been selected and applied consistently and judgements and estimates made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and profit & loss of the company for that period;

c) Proper and sufficient care have been taken for maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) The Annual Accounts have been prepared on a going concern basis;

e) Internal Financial Controls have been laid down and that such controls are adequate and were operating effectively during the year ended 31stMarchRs.2019.

f) Proper systems have been devised to ensure compliance with the provisions of all applicable laws and such systems were adequate and operating effectively.

For CIL (Consolidated) Accounts, such confirmation is based on confirmation obtained from eight Indian subsidiaries of CIL viz: Eastern Coalfields Limited, Bharat Coking Coal Limited, Central Coalfields Limited(consolidated), Northern Coalfields Limited, Western Coalfields Limited, Mahanadi Coalfields Limited (consolidated), South Eastern Coalfields Limited (consolidated) and Central Mine Planning & Design Institute Limited. However, for the overseas subsidiary viz. Coal India Africana Limitada, which was incorporated under Mozambique Commercial Code and for Joint Ventures viz. International Coal Ventures Private Limited, NTPC Urja Private Limited, Hindustan Urvarak & Rasayan Limited and Talcher Fertilizers Limited where CIL is not the majority shareholder, such confirmation have not been obtained.

39. ACCOUNTS OF THE SUBSIDIARIES

The statement containing the salient features of the financial statements of a company’s subsidiaries, associate companies and joint ventures under the first proviso to sub-section(3) of section 129 of Companies Act,2013 is enclosed as AOC 1 in Annexure 20. In terms of General Circular No.2/ 2011 dated 8th Feb 2011 from Ministry of Corporate Affairs, the Annual Accounts of the subsidiary companies shall be made available to the shareholders on demand.

40. COST AUDIT

M/s Balwinder Singh & Associates conducted the Cost Audit of your company for the year 2017-18 and the Cost Audit Report was approved by the Board of Directors in their 372nd meeting held on 25th Sep 2018. The Cost Audit Report did not contain any adverse observation/comment or qualification from the Cost Auditor. The above report was filed in XBRL mode with MCA on 27th September 2018.

Balwinder & Associates was reappointed as Cost auditor for CIL Standalone for the year 2018-19. E-form CRA-2 has been filed with MCA portal vide SRN H16189615 dated 27.09.2018.

41. SECRETARIAL AUDIT

In pursuance to Section 204 of Companies Act 2013, company had conducted Secretarial Audit for the year 2018-19 by a practicing Company Secretary M/s Vinod Kothari & Co, Practising Company Secretaries. Their appointment was approved in the 379th CIL Board meeting held on 12th FebRs.19. Company has obtained an ‘Unqualified Report’ without any matter of Emphasis and same is enclosed in Annexure 21. In addition CIL has 6 Material Unlisted Subsidiaries and their Secretarial Audit Report along with Observation and management Reply are also annexed as per Regulation 24A of LODR 2015. As per SEBI circular dated 08-02-2019 Practicing Company Secretaries conducted compliance of SEBI laws and same was filed with Stock Exchanges on 30th May, 2019.

42. RISK MANAGEMENT POLICY

CIL has approved Risk Management Charter and Risk Register to build up a strong Risk Management Culture within CIL in achieving company’s goals and objectives. The entity level Risk Assessment includes:

i) Strategic Risk.

ii) Operational Risk.

iii) Financial Risk.

iv) Compliance Risk.

v) Project Related Risk.

vi) Support System Risk.

As per the Risk Register, different risks have been identified for CIL & its Subsidiaries, Risk Owner & Risk Mitigation Plan Owner have also been nominated for each risk identified to ensure continuous monitoring and mitigation thereof.

A Consultant was engaged for implementation of the governance process envisaged in the Risk Management Framework, including facilitation for formulation of Risk Mitigation plans for the Prioritized Risks of CIL. The Agency has completed Updated Risk Register, Prioritization of Risk, Risk that Matters along with Mitigation measures of the Risk that Matters.

The Consultant has submitted its final report to CIL for implementation.

43. WEBLINK

The following policies may be accessed on the Company’s website as under:-

1. Corporate Social Responsibility Policy: https://www.coalindia.in/DesktopModules/DocumentList/documents/CIL_CSR_Policy_New_Companies_Act_2013_05022016.pdf

2. Vigil Mechanism:

https://www.coalindia.in/DesktopModules/DocumentList/documents/Office_Order_No.57_dt_08092011_-_Coal_ India_ Whistle_ Blower_ Policy_2011.pdf

3. Policy for determining Material Subsidiary: https://www.coalindia.in/DesktopModules/DocumentList/documents/POLICY_ FOR_ DETERMINING_ MATERIAL_ SUBSIDIARIES_ 21032015.pdf

4. Related Party Transaction Policy: https://www.coalindia.in/DesktopModules/DocumentList/documents/Related_Party_Transaction_Policy’_01122014(1).PDF

5. Policy on determination of Materiality under SEBI(LODR) Regulations,2015 https://www.coalindia.in/DesktopModules/DocumentList/documents/Policy_ on_ determination_ of%20_ Materiality_ under_SEBI_ LODR_% 20Regulations_2015_03042017.PDF

6. Policy on Preservation of documents including Archival Policy under SEBI(LODR) Regulations 2015 https://www.coalindia.in/DesktopModules/DocumentList/documents/Policy_ on_Preservation_of_ documents_including_Archival_ Policy_under_SEBI_LODR_Regulations_2015_17052017.pdf

7. Dividend Distribution Policy under SEBI (LODR) Regulations 2015 https://www.coalindia.in/DesktopModules/DocumentList/documents/Dividend_ Distribution_ policy_of_Coal_ India_ Limited_ 25102017.pdf

44. COMPANY CONFIRMS THE FOLLOWING:-

1. None of the Directors are disqualified for appointment as per Section 164 of the Companies ActRs.2013.

2. Company has not issued any Equity shares with differential voting rights, Sweat Equity shares and ESOP. However Company has issued shares to Employees of CIL and its Subsidiaries as per the OFS Scheme.

3. Unclaimed Final Dividend 2010-11 and Interim Dividend 2011-12 along with the Shares on which dividend have not been claimed for Seven consecutive years were transferred to IEPF Authority as stipulated in Companies Act 2013.

4. No Statutory, Secretarial, and Cost Auditors had resigned during the year 2018-19.

5. No relative of director was appointed to place of profit.

6. As per Regulation 32(4) of SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015 deviation of Proceeds of Public issue is not applicable to the company.

7. There is no deposit covered under Chapter V of Companies Act 2013.

8. There is no deposit, which is not under compliance of Chapter V of Companies Act 2013.

9. There is no change in the nature of business.

10. No Director is in receipt of any commission from the subsidiary companies in which he is a director.

11. Applicable Secretarial Standards, i.e. SS-1 and SS-2, relating to ‘Meetings of the Board of Directors’ and ‘General Meetings’, respectively, have been duly followed by the Company.

45. ADDITIONAL INFORMATION

1. Details in respect of frauds reported by Auditors under section 143(12) other than those which are reportable to the Central Government. :

No such report of frauds as per Audit Report of Standalone as well as Consolidated Accounts.

2. Material changes and commitments, if any, affecting the financial position of the company which have occurred between the end of the FY and the date of the report :

No such material changes and commitments occurred between the end of the FY and the date of the report which may affect the Standalone as well as consolidated financial position of the company.

3. The names of companies which have become or ceased to be its subsidiaries, joint ventures or associate companies during the year.

On 8th January,2013, MCL had formed a Joint Venture Company namely, Neelanchal Power Transmission Company Private Limited(NTPCPL) with Odisha Power Transmission Company Ltd (OPTCL) having 50:50 equity participation with an objective of carrying out power transmission business in Odisha. As the Company could not start its operation, the name of NTPCPL was struck off by ROC from the Register of Companies w.e.f 28.06.2018 and the Company is dissolved as per Section 248(5) of the Companies Act, 2013

46. EXTRACT OF ANNUAL RETURN :

As per the requirements of section 92(3) of the Companies Act and rules framed hereunder, the extract of Annual Return in form MGT-9 is included as Annexure-18. The same is available in Coal India website www.coalindia.in (under Investor centre, Events and Announcements). The Weblink is given hereunder :

https://www.coalindia.in/DesktopModules/DocumentList/documents/ExtractofAnnulReturn.pdf

47. ACKNOWLEDGEMENT:

The Board of Directors of your Company wishes to record their deep sense of appreciation for the sincere efforts put in by the employees of the Company and Trade Unions. Your Directors also gratefully acknowledges the co-operation, support and guidance extended to the Company by various Ministries of the Government of India in general and Ministry of Coal in particular, besides the State Governments. Your Directors also acknowledge with thanks the assistance and guidance rendered by Statutory Auditors, the Comptroller and Auditor General of India and Registrar of Companies, West Bengal, Secretarial Auditor and Cost Auditor and wishes to place on record their sincere thanks to Consumers for their continued patronage.

48. ADDENDA

The following are annexed:-

i) Pre-tax Profit of CIL & subsidiaries for 2018-19 vis-a-vis 2017-18 (Annexure 1).

ii) Subsidiary wise details of Dividend income of CIL Standalone (Annexure 2).

iii) The comments of the Comptroller and Auditor General of India on Standalone Financial Statements of Coal India Limited (Annexure 3).

iv) Auditors Report on the Standalone Financial Statements for the year ended 31st March, 2019 including Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”) [Annexure 3(A)].

v) The comments of the Comptroller and Auditor General of India on Consolidated Financial Statements of Coal India Limited (Annexure 4).

vi) Auditors Report on the Consolidated Financial Statements for the year ended 31st March, 2019 including Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”) [Annexure 4(A)].

vii) Subsidiary wise Coal Off-take. (Annexure 5)

viii) Sector-wise dispatch of coal & coal products. (Annexure 6)

ix) Subsidiary wise details of Stock of Coal. (Annexure 7)

x) Subsidiary wise details of Trade Receivables. (Annexure 8)

xi) Subsidiary-wise payment of Royalty, Cess, Sales Tax, Stowing Excise Duty, Central Excise Duty, Clean Energy Cess, Entry Tax and Others. (Annexure 9)

xii) Subsidiary-wise Coking & Non-coking production, Production from underground and opencast mines. (Annexure 10)

xiii) Subsidiary-wise Washed Coal (Coking) Production. (Annexure 10A)

xiv) Subsidiary wise Overburden Removal. (Annexure 10B).

xv) Population of equipment. (Annexure 11)

xvi) Subsidiary wise System Capacity Utilization. (Annexure 12).

xvii) Project Implementation. (Annexure 13).

xviii) Subsidiary wise details of Capital Expenditure. (Annexure 14)

xix) Salient features of continuous and sustained improvement in CIL’s safety performance. (Annexure 15)

xx) Subsidiary wise manpower. (Annexure 16)

xxi) Disclosures under Rule 5(1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. (Annexure 17).

xxii) The extract of the annual return as provided under sub-section (3) of Section 92 in Form No. MGT.9 (Annexure 18).

xxiii) Loan and Advances, Guarantees, Investments made by the company under Section 186(4) of the Companies ActRs.2013 (Annexure 19).

xxiv) Statement pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014) as on 31st March, 2019. (Annexure 20).

xxv) Secretarial Audit Report under Section 204 of Companies Act 2013 and Secretarial Audit Report of Material Subsidiaries and Management Explanation. (Annexure 21).

xxvi) Foreign Exchange Earning and Outgo under Rule 8 of Companies (Accounts) Rules 2014 (Annexure 22).

xxvii) Details about Research and Development of the Company (Annexure 23).

xxviii) Disclosure as per Section 135 of Companies Act 2013 on Corporate Social Responsibility (Annexure 24).

xxix) Significant and Material Orders passed by the Regulators or Courts. (Annexure 25).

xxx) Corporate Governance Report. (Annexure 26)

For and on behalf of the Board of Directors

Sd/-

A.K.Jha

Kolkata Chairman

Date : 12th July, 2019 (DIN-06645361)


Mar 31, 2018

On behalf of the Board of Directors, I have great pleasure in presenting to you, the 44th Annual Report of Coal India Limited (CIL) and Audited Accounts for the year ended 31st March, 2018 together with the reports of Statutory Auditors and Comptroller and Auditor General of India thereon.

Coal India Limited (CIL) is a 'Maharatna' company under the Ministry of Coal, Government of India with headquarters at Kolkata, West Bengal. CIL is the single largest coal producing company in the world and one of the largest corporate employers with manpower of 298757 (as on 1st April, 2018). CIL operates through 82 mining areas spread over nine provincial states of India. Coal India Limited has 369 mines (as on 1st April, 2018) of which 174 are underground, 177 opencast and 18 mixed mines. CIL further operates 15 coal wateriest, (11 coking coal and 4 non coking coal) and also manages other establishments like workshops, hospitals, and so on. CIL has 27 training Institutes. Indian Institute of Coal Management (IICM) is an excellent training centre operates under CIL and imparts multidisciplinary management development programmes to the executives. Coal India's major consumers are Power and Steel sectors. Others include cement, fertilizer, brick, kilns, and a host of other industries.

CIL has eight fully owned Indian subsidiary companies:

-    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 is managed directly by CIL.

Mahanadi Coalfields Limited, a subsidiary of Coal India Ltd is having four (4) Subsidiaries and one(1) Joint Venture, SECL has two(2) Subsidiaries and CCL has one (1) Subsidiary.

A) Subsidiaries of MCL

1.    MJSJ Coal Ltd.

MJSJ Coal Ltd was incorporated on 13th August, 2008 as a Joint Venture Company of MCL. MJSJ Coal Ltd was incorporated for Gopalprasad OCP where MCL is having 60% shares, JSW Steel Limited and JSW Energy Limited having 11 % shares each, Shyam Metalics and Energy Ltd (formerly known as Shyam DRI Power Limited) and Jindal Stainless Limited having 9% shares each. The paid up Share Capital of MJSJ Coal Ltd. as on 31-03-2018 was ' 95.10 Crore. The Hon'ble Supreme Court of India in its judgment dated 25.08.2014 and order 24.09.2014 declared allocation of Utkal-A coal block allocated to MJSJ Coal Ltd. as illegal and has quashed the allocation.

2.    MNH Shakti Ltd.

MNH Shakti Ltd was incorporated on 16th July, 2008 as a Joint Venture Company of MCL. MNH Shakti Ltd was incorporated for Talabira-II & III OCP where MCL is having 70% shares, Neyveli Lignite Corporation Ltd having 15% shares and Hindalco Industries Ltd. having 15% shares. The Share Capital of MNH Shakti Ltd. as on 31-03-2018 was Rs, 85.10 Crore. The Hon'ble Supreme Court of India in its judgment dated 25.08.2014 and order 24.09.2014 declared allocation of Talabira- II and Talabira- III coal blocks allocated to MNH Shakti Ltd. as illegal and has quashed the allocation.

3.    Mahanadi Basin Power Limited.

Mahanadi Basin Power Limited was incorporated on 2nd December, 2011 and certificate for commencement of business, issued by ROC on 0602-2012. MBPL was incorporated as an SPV with 100% shares held by Mahanadi Coalfields Ltd and it's nominees with power generation capacity of 2x800 MW through Pit Head Power plant at Basundhara Coalfields. It is a wholly owned subsidiary of Mahanadi Coalfields Ltd (MCL) having its Registered Office at Plot No. G-3, Gadakana Chandrasekharpur, Bhubaneswar-751017, Odisha. The share capital as on 31.03.2018 was Rs, 5 Lakh.

4.    Neelanchal Power Transmission Company Private Limited

MCL ventured into Power Transmission Business in the State of Odisha for better utilization of surplus funds along with development of infrastructure in the State of Odisha. Accordingly, on 8th January, 2013 another joint Venture Company namely, Neelanchal Power Transmission Company Private Limited (NPTCPL) was incorporated in partnership with Odisha Power Transmission Company Ltd (OPTCL) having 50:50 equity participation by virtue of a Joint Venture Agreement between the MCL and OPTCL with an objective of carrying out power transmission business in Odisha.

5. Mahanadi Coal Railway Limited

Pursuant to MoU signed between IDCO, MCL and IRCON on 20th May, 2015, a Joint venture Company viz. Mahanadi Coal Railway Limited was incorporated on 31st August, 2015 with a equity participation in the ratio of 64:26:10 among MCL, IRCON and IDCO to build, construct, operate and maintain identified rail corridor projects including doubling, third line, traffic facility projects important for coal connectivity that are critical for evacuation of coal from mines, in the state of Odisha. The share capital as on 31.03.2018 was Rs, 5 Lakh.

(B)    Subsidiaries of SECL

1.    M/s Chhattisgarh East Railway Ltd(CERL)

1.    CERL is a joint venture Company among South Eastern Coalfields Limited, M/s IRCON International Limited and Chhattisgarh State Industrial Development Corporation incorporated on 12th Mar'13 for construction of railway lines for evacuation of coal. The Company has achieved financial closure for East Rail Corridor Phase I Project on 24.11.2017.

2.    The total land required for the construction of Main Line from Kharsia to Dharamjaigarh had been acquired.

3.    The proposal for diversion of 26.52 Ha of forest land for 12 Villages in 0-10 KM and Spur 0-28 KM had been approved.

4.    Tenders amounting to ' 655 Crores had already been issued for construction of Major Bridges, Minor Bridges, Road Bed and supply, fabrication, erection, Launching of Steel Girders and Design, Supply, Erection, Testing & Commissioning of Traction substation for various segments in 0-10 KM, 10-74 KM and 0-28 KM spur, supply of Signaling & Telecommunication Cable and Supply & Stacking of Ballast.

5.    Detailed survey and requirement of land for Chhal had been completed and notification for acquisition of private land issued. The survey of other two feeder lines originating from Korichhapar and Dharamjaygarh is under finalization in consultation with SECL.

During the year 201 7-18, the paid up and subscribed capital of the Company remained at ' 306 Crore. SECL holds 67.23% equity Share during 2017-18.

2.    M/s Chhattisgarh East- West Railway Ltd (CEWRL)

CEWRL is a joint venture Company among South Eastern Coalfields Limited, M/s IRCON International Limited and Chhattisgarh State Industrial Development Corporation incorporated on 25th Mar'13 for construction of railway lines for evacuation of coal. Achievement during 2017-18 are-

1)    The revision of Detailed Project Report (DPR) was necessitated due to approval of inflated mileage of 40% from Railway Board as against our request of 50% and introduction of GST Act w.e.f 01st July 201 7 and incorporating suggestions received from Coal India Limited.Accordingly, the Revised Detailed Project Report (DPR) of East-West Rail Corridor Project, from Gevra Road to Pendra Road via Dipka, Katghora, Sindurgarh, Pasan, approximately 135.30 km in length with connectivity to Kusmunda, Junadih and Dipka Sidings along with a provision to construct and integrate with the East West Rail Corridor for about 35 Kms of Feeder lines to connect Kartali, Ambica, Saraipali and Vijay West Mines of SECL prepared and submitted by IRCON and duly independently financially appraised by M/s CARE Risk Solutions Pvt. Ltd (formerly M/s CARE Kalypto Risk Technologies & Advisory Services Pvt. Ltd.), Mumbai had been approved at a total Project Cost of Rs, 4,970.11 Crores.

2)    The approval of inflated mileage of 40% for the first five years of operation for a chargeable distance of 135 Km from the Railway Board had been communicated on 15th June 2017.

3)    The Company has initiated the process of financial closure through rupee term loan of Rs, 3976.00 Crore, being 80% of the total project to finance the project in the Debt to Equity Ratio of 80:20. The balance amount is proposed to be the promoter's contribution.

4)    The Stage I approval for diversion of 459.522 Ha of forest land for the project has been approved on 26.02.2017 and upon compliances, the working permission has been granted on 31st March 2018. Final Stage II clearance for the same is under process.

5)    Land acquisition for main line and Urga -Kusmunda has been largely completed.

6)    Detailed survey and requirement of land to initiate land acquisition for various connectivity and feeder lines is being worked out.

During the year 201 7-18, the paid up and subscribed capital of the Company has remained the same at Rs, 504.05 Crore with SECL holds 64.06% Share.

(C)    Subsidiary of CCL

Jharkhand Central Railway Limited is a Joint Venture Company among Central Coalfields Limited, M/s IRCON International Limited and Govt. of Jharkhand incorporated on 31st August, 2015 for evacuation of Coal in which CCL holds 64% shares. During the year 201 7-18, the Authorized Capital of the company increased from Rs, 100 Crores to Rs, 500 Crores.

The work of Shivpur - Kathotia new BG Rail Line has been identified to be taken up by M/s Ircon International Limited, implementing agency of JCRL. M/s IRCON prepared Detailed Project Report which was approved by JCRL Board. Further, EC Railway has accorded its approval on the DPR (Revised Project Cost - Rs, 1 799.64 Crs) submitted by M/s IRCON on 27th Feb. 2018. M/s IRCON has taken up the matter for finalization of inflated mileage and concession agreement with Railways.

1. STATE OF COMPANY AFFAIRS

1)    Offtake during 2017-18 was 580.284 Mt highest ever with an increase of 6.8% compared to 543.32 Mt in 2016-17.

2)    Coal supply to the Power sector was 454.224 Mt in 2017-18, representing a growth of about 6.8%. CIL had supplied 425.40 Mt in 2016-17.

3)    Supply of coal to Non-power sector in 2017-18 was 127.25 Mt representing a growth of about 8.67% compared to 117.09 Mt in 2016-17.

4)    Coal Inventory as on 31.03.18 was 55.49 Mt. against 68.42 Mt. in 31.03.17 resulting in liquidation of about 13 Mt.

5)    11 coal blocks have been allotted to Coal lndia Ltd subsidiaries i.e. ECL, BCCL and WCL. These new blocks will help them to produce more than 100 MTA each.

6)    Company has commissioned two major rail infrastructure projects, Tori-Balumath section in Tori - Shivpur division under jurisdiction of CCL and Jharsuguda- Barpali- Sardega section under jurisdiction of MCL, which were built on deposit basis and are now operational.

2. FINANCIAL PERFORMANCE

2.1 Financial Results (CIL Consolidated)

CIL is one of the largest profit making and tax & dividend paying enterprises in India. CIL and its subsidiaries have achieved an aggregate Pre-Tax Profit of Rs, 10726.44 crores for the year 2017-18 against a reinstated pre-tax profit of Rs,14,446.33 crores in the year 2016-17 after taking into account the impact of pay revision for non-executive employees w.e.f. 01.07.2016 and taking provisions for executives pay revision which is to be implemented retrospectively from 01.01.201 7.The above mentioned figure also includes the actuarial impact of Rs, 7384.37 cr. due to increase in ceiling of gratuity from Rs,10 Lakhs to Rs, 20 Lakhs w.e.f. 29.03.2018. The subsidiary wise details of Pre-tax Profit after considering the impact of pay revisions and increase in gratuity ceiling limit of CIL are given in Annexure 1.

There is growth in Profit Before Tax of 31.35% on comparison the Profit Before Tax of 2016-17 (without considering the provision of pay revision of executive and non-executive) with the Profit Before Tax of 201 7-18 (without considering the provision of pay revision of executives and non-executives, impact of increase in ceiling of gratuity limit from Rs,10 Lakh to Rs,20 Lakh but including the payment of revised wages of nonexecutives from 01.10.2017 to 31.03.2018). The subsidiary wise details of Pre-tax Profit after without considering the impact of pay revision and increase in gratuity ceiling limit of CIL are given in Annexure 1A.

CIL as a group had achieved profit for the year of Rs, 7020.22 crores in 2017-18 compared to Rs, 9,279.77 crores in 2016-17. Total Comprehensive Income of the company is Rs, 7652.73 crores compared to Rs, 9361.77 crores in 2016-1 7 (share of non-controlling interest of Rs, 0.12 crore; previous year: Rs, 0.25 crore).

Highlights of performance

The highlights of performance of Coal India Limited Consolidated for the year 2017-18 compared to previous year are shown in the table below:

PARTICULARS

2017-18

2016-17

Production of Coal (in million tonnes)1

567.365

554.14

Off-take of Coal (in million tonnes)

580.287

543.32

Sales (Gross) (Rs,/Crores)

127162.17

122286.96

Capital Employed (Rs,/Crores) Note- 1

55883.03

58300.67

Capital Employed (Rs,/Crores)- excluding capital work in progress and intangible assets under development

42082.50

47940.07

Net Worth (Rs,/Crores)

19827.37

24498.28

Profit Before Tax (Rs,/Crores)

10726.44

14446.33

Profit for the Period (Rs,/Crores)

7020.22

9279.77

Total Comprehensive Income for the period (Rs,/Crores)

7652.73

9361.77

Profit for the Period / Capital Employed (in %)

12.56

15.92

Profit before Tax / Net Worth (in %)

54.10

58.97

Profit for the period / Net Worth (in %)

35.41

37.88

Earning Per Share (Rs,)

(Considering Face Value of Rs,10 per share)

11.31

14.80

Dividend per Share (Rs,)

(Considering Face Value of Rs,10 per share)

16.50

19.90

Coal Stock (Net) (in terms of No. of months Net Sales)

0.73

1.18

Trade Receivables (Net) (in terms of No of Months Gross Sales)

0.82

1.22

Capital reserve on consolidation includes Rs, 1548.45 crore recognised as utilization of Capital Redemption Reserve, General Reserve and Retained Earnings on issue of bonus shares by subsidiary companies viz. Northern Coalfields Limited (NCL), Mahanadi Coalfields Limited (MCL), South Eastern Coalfields Limited (SECL) and Coal Mine Planning and Designing Institute Limited (CMPDIL) in the ratio of 4:1, 4:1, 7:5 and 1:1 respectively to Coal India Limited (holding Co.). No. of shares issued as Bonus Shares by NCL, MCL, SECL and CMPDIL are 5462372 equity shares of Rs, 1000 each, 5649064 equity shares of Rs, 1000 each, 41,82,850 equity shares of Rs, 1000 and 1,90,400 equity shares of Rs,1000 each respectively.

The Subsidiary wise break up of no. of equity shares issued are as follows :-

(In Numbers)

Company

Pre-Bonus Issue

Post- Bonus Issue

ECL

22184500

22184500

BCCL

21180000

21180000

CCL

9400000

9400000

NCL

1365593

6827965

WCL

2971000

2971000

SECL

2987750

7170600

MCL

1412266

7061330

CMPDIL

190400

380800

2.2    Dividend Income and Pay Outs (CIL Standalone)

While the financial statements of both CIL Standalone and CIL Consolidated are presented separately, only CIL Standalone is listed and relevant for dividend payment to its shareholders. The dividend to its shareholders are paid out of CIL's Standalone income, the major part of which constitutes the dividend income received during 2017-18 from its five profit making subsidiaries i.e. CCL, NCL, SECL, MCL and CMPDIL. The breakup of such dividend received and accounted for during the year from different subsidiaries are given in Annexure 2.

During the year 2017-18, CIL Standalone has paid a total dividend (by way of interim dividend) of ' 10,242.24 crores @ Rs,16.50 per share on 6.20.74.09.1    77 number of Equity Shares of Rs,10/- each fully paid up. Out of above total dividend, the share of Govt of India was Rs, 8044.86 crores and for other shareholders, Rs, 2197.38 crores. (Earlier year - Govt of India- Rs, 9736.40 crores and Other shareholders - Rs, 2616.36 crores)

2.3    Supplementary Audit of Financial Statements by Comptroller and Auditor General of India (C&AG)

The report from the C& AG is pending and the report and comments received on supplementary audit of Standalone and Consolidated Financial Statements will be enclosed in Annexure 3 and Annexure 4.

2.4    Management Explanation on Statutory Auditor's Report Management Explanation on Statutory Auditor's Report

The statutory auditors of the company have given an unqualified report [Annexure 3(A) and Annexure 4(A)] on the Standalone Financial Statements and Consolidated Financial Statements respectively of the company for the financial year 2017-18. However, they have drawn attention under 'Emphasis of Matter' on certain issues. These issues under 'Emphasis of Matter' along with observations of the auditors elsewhere in the annexures of the audit report are enclosed as Annexure 5 & Annexure 5(A) respectively with Management explanation thereto.

3. COAL MARKETING

3.1    (a) Off-take of Raw Coal

Off-take of raw coal continued to maintain its upward trend and reached 580.284 million tonnes for fiscal ended March 2018, surpassing previous highest figure of 543.32 million tonnes achieved during the last year, i.e., an increase of 6.8 % over the last year. The overall raw coal off-take achieved was 96.7% of the Annual Action Plan Target.

In the year 201 7-18, ECL, CCL, NCL, WCL, SECL and NEC could outperform their achievement of last year. NCL, WCL & NEC had also exceeded its target. Company-wise target vis-a-vis actual off-take for 2017-18 and 2016-17 is shown in Annexure 6.

Off take could have been more, but for the following reasons:

-    Evacuation problem due to closure of Dhanbad Chandrapura line at Katras & Sijua Areas at BCCL.

-    Constraints of Rakes as per Indent at MCL & SECL.

-    Constraints of N -Box at NCL & CCL for movement to upward country.

-    Frequent Strikes at various mines of Talcher field in MCL & CCL.

-    Evacuation constraint of Magadh-Amrapali mines at CCL. Now Tori-Shivpur Rail Line is commissioned up to Balumath, dispatch from Magadh and Amrapali of CCL has started from Balumath siding.

-    EC issues at Kusmunda mine of SECL.

Initiatives taken for enhancing off-take are as under:

- Regular co-ordination with Railway at all levels including Railway Board to optimize use of logistics resources available in the subsidiary coal companies, analyzing inputs of the subsidiaries to identify alternate source for coal movement wherever and whenever required to achieve overall sectoral targets and mitigating critical fuel requirement of consuming sectors, particularly power stations.

-    Coordination with MOC for various long and short-term policy decisions to overcome coal movement constraints for power and non-power sector consumers and taking operational decisions for moving coal from various sources on contingent situations to meet critical requirements of consuming sectors, particularly power utilities etc.

-    Periodic Meetings and follow ups with Power producers in addressing issues relating to coal movement.

-    Source Rationalization of coal linkage for optimizing coal movement as per the requirement of the consumers and logistics.

-    At the preference of Power Utilities, sources of supply to Power Plants are readjusted on quarterly basis within the Aggregated ACQs under Flexi Utilization Scheme.

-    Besides enhancing dispatches through Rail mode, Power stations within the vicinity of 50-60 KM of the mines having FSA have been offered coal through Road/RCR mode to be lifted by their own transport arrangement for further augmenting the dispatch.

-    Ministry of Power has been requested to prevail upon the power plants situated within 20 Kms to lift their entire requirement by Road mode from 2018-19 onwards, to increase availability of rakes for movement to long distance plants.

-    In the Meeting held on 22nd and 25th January, 2018, taken by the Hon'ble MOS (I/C) for Power and New and Renewable Energy, it was decided that all power plants located within 20 km to 40 Km from pithead shall construct elevated closed belt conveyors/ MGR within 2-3 years. Power plants located beyond 40 Kms and up 100 Km may also consider the option of MGR based on financial viability.

-    Initiative for long-term demand creation:

a)    Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India, SHAKTI.

b)    Auction of coal linkages to Non-Regulated Sector.

-    Establishment of IMC(Initiatives, Monitoring and Control Cell) at CIL HQ & Subsidiary coal companies for day to day monitoring of coal movement in coordination with Railways and Power companies.

Special E-Auction Schemes:-

From the year 2015-16, Special Forward E-Auction scheme introduced by MOC for meeting the coal requirement of Power plants, is being continued. During 2015-16, 2016-17 & 2017-18, around 13.8 Mill tes, 47 Mill tes & 28.9 Mill tes coal was booked by the power consumers under this scheme of e-auction respectively.

A similar scheme for consumers in the non - power sector was also launched as Exclusive E-auction scheme for non-power. During 2015-16, 2016 17 & 2017-18, around 1.5 Mill tonnes, 6.2 Mill tes & 11.1 Mill tonnes coal was booked by the non-power consumers under this e-auction.

Special Spot e-auction was also conducted during 2016-1 7 & 201 7-18 for the buyers of non-specified end use where 6.2 Mill tes & 0.7 Mill tes coal was booked respectively.

(b) Sector-wise dispatch of coal & coal products:

In the year 201 7-18, CIL dispatched 581.475 MT of Coal & Coal Products against the AAP target of 601.18 MT i.e., an achievement of 96.7%. CIL has dispatched 39 MT of coal and coal products more than last year with a growth of 7.2%.

A quantity of 454.224 MT of coal and coal products was despatched to power utilities against the target of 452.236 MT i.e., an achievement of 100.4%. This is 28.8 MT more than last year's dispatch of 425.397 MT, resulting in a growth of 6.8%.

Sector-wise break-up of dispatch of coal & coal products for 2017-18 against the target and last year's actual are given in Annexure 7.

3.2    Dispatches of coal and coal products by various modes:

Dispatches of coal and coal products during 2017-18 went up to 581.475 million tonnes from 542.494 million tonnes registering a growth of 7.2%. Overall dispatch by Non-Rail mode had been 102.7% of the target. Growth in dispatches via Rail mode was 2.3 % and in the overall Non-Rail mode by 13.3 %. Road despatches increased by 18% compared to the previous year. Movement by MGR also increased by 8.7% compared to last year. However, dispatches through other modes, like belt & rope decreased by 3.8 % compared to the last year.

Dispatch of coal and coal products by various modes for the years 2017-18 and 2016-17 are given in Annexure 8.

3.3    Wagon Loading

Overall wagon loading materialization was 92.8 % of the target. This was achieved due to sustained efforts and regular coordination with railways at different levels. The increase in loading over last year was of 7.2 rakes per day. Company wise performance showed that ECL, NCL, WCL & NEC outperformed its target. ECL, CCL, NCL, WCL & NEC exceeded last year's level of loading.

Wagon loading performance of 2017-18 vis-a-vis 2016-17 is given in Annexure 9.

3.4    Consumer satisfaction

i.    For enhanced customer satisfaction, special emphasis has been given to Quality Management of coal from mine to dispatch point.

ii.    Continuing with the steps for independent assessment of grades of mines through various academic institutes of national repute by CCO, annual grade declaration of 2018-19 has been finalized by CCO. Total 386 mines were re-assessed and out of these 61 mines are downgraded and 42 mines are up-graded.

iii.    In order to monitor coal quality, a portal UTTAM (Unlocking Transparency by Third Party Assessment of Mined Coal) has been launched by CIL to capture entire life cycle of sample. With the help of the portal, information of coal quality on regular basis will be accessible to both Coal Cos. and Consumers.

iv.    CIL is supplying (-) 100mm sized coal to all power plants w. e. f. 01.01.2016 except pit head plants having mutual agreement for sourcing (-) 250 mm coal. In addition to crushing facilities at coal handling plants, mobile crushers are being installed to meet the additional crushing requirement.

v.    Emphasis has been given for maximum production of (-)100 mm coal through surface miners. For this, surface miners have been deployed for production of coal in mines wherever technically / commercially feasible. Total coal production through Surface Miners was 266 Mt in 2017-18 compared to 256 Mt in 2016-1 7 which constitute about 47% of total production of coal.

vi.    Measures like picking of shale / stone, selective mining by conventional mode, adopting proper blasting procedure / technique for reducing the possibility of admixture of coal with over-burden material & improved sizing of coal etc. are taken up.

vii.    For better consumer satisfaction and enhanced transparency Third Party validation through transparent process of sampling & analysis facility has been extended for the first time to all customers including Spot E-Auction, Special spot auction, Exclusive E-Auction and FSA consumers in Non-Power sector ( FSA against Pre NCDP linkage for low & medium demand ) including State Nominated Agencies through IIT-ISM and QCI.

viii.    Area laboratories of subsidiary coal companies have been equipped with 121 Bomb Calorimeters for accurate and transparent measurement of GCV of coal samples. 43 labs. across the subsidiary companies have already got NABL accreditation and another

12 labs, accreditation process is underway. It is expected that standardization of the process as per NABL standard will go in a long way to enhance customers' confidence about the process of assessment of coal quality and facilitate quality monitoring.

ix.    The guidelines / SOP issued by MoC vide letter dated 26.11.2015 on third party sampling at loading ends has already been implemented through Central Institute of Mining and Fuel Research (CIMFR). Sampling and analysis covering supply of about 529 Mt on annual basis to power utilities has been taken up by CIMFR across various loading points of coal companies.

x.    Electronic weighbridges with the facility of electronic printout have been installed at rail loading points to ensure that coal dispatches are made only after proper weighment. Coal Companies have also taken action for installation of standby weighbridges to ensure 100% weighment.

xi.    22 Auto Mechanical Samplers (AMS) are also working in subsidiary coal companies for coal sampling, eliminating chances of biasness in sampling process. Procurement of further AMS is under process. The process has been initiated to do a pilot study for deployment of Augur Sampling equipment to draw samples without human intervention.

xii.    In order to ensure consumer satisfaction and resolve consumer complaints, special emphasis has been given to quality management and redressal of consumer complaint. On-line filing and redressal of complaints have been implemented.

3.5 Marketing of Coal:

Status of execution of Fuel Supply Agreements and performance of e-auction:

Supply of coal was made to various consumers including Power Sector under the applicable provisions of New Coal Distribution Policy. Due to overall deficit in availability of coal considering the projected coal production from domestic sources and commitments made through signing of FSAs/issuance of Letter of Assurances (LOA), supplies under FSAs has been pegged at various level of commitments (trigger). Power sector being the major consuming sector having significant importance in the economy, supplies to power sector has been guided as per the various Government directives and polices.

(i)    For power stations, commissioned on or before 31.03.2009, 306 million tonnes had been considered to be supplied through bilateral legally enforceable Fuel Supply Agreements (FSA) with a trigger level of 90%. The total quantity covered under FSA against the allocation as on March'18 was about 295 million tonnes.

(ii)    Apart from the above, 181 Letter of Assurances have been issued to power plants by subsidiary companies of CIL, as per the recommendations of various SLC (LT) Meetings for about 433.80 Million tonnes. Further, as per Presidential Directives dated 16th April'2012 and revised directive dated 17-7-2013, a list of Power Plants having an aggregate capacity of 78535 MW was notified for signing of FSA. A total 1 73 TPPs, 149 cases having normal LOA and 24 cases having Tapering LOA (as per MOC OM dated 30.06.2015 tapering linkages are not existent as on date), were listed. Till 31st March'2018, out of 149 regular LOAs 146 FSAs have been signed. The balance FSAs could not be signed for the reasons not attributable to CIL. However, out of the above, 1 FSA has been transferred to SCCL and 2 FSAs became null and void since the plants have been converted from IPP to CPP.

For post-NCDP Plants (Plants commissioned after March 2009), total FSA commitment of CIL as on date is for an Annual Contracted Quantity (ACQ) of about 227.33 Million tonnes for the aggregate capacity of about 57571 MW which is backed by long term Power Purchase Agreement (PPA) and qualify for commencement of coal supply subject to commissioning etc.

(iii)    As on 1st April, 2018, about 800 units other than power and steel plants have operative FSAs with subsidiaries of CIL for a quantity of about 57.4 million tonnes.

(iv)    For supply of coal to Small and Medium and Other Consumers whose annual coal requirement is less than 10,000 tonnes, 8 Mill tonnes was earmarked by CIL for allocation to agencies nominated by the State Govt's/ UT's for the year 201 7-18. 15 States sent their nomination of 19 State Agencies for the year 2017-18 of which 11 State Agencies of 10 States have signed FSAs for 2.454 Mill. tonnes and drawing coal accordingly.

(v)    CIL has conducted three tranches of Auction of Coal Linkages for Sponge Iron, Cement, CPP, Steel (coking) and 'Others (non-coking & coking)' sub-sectors under Non-Regulated Sector during the period Jun'16 to Nov'17 in accordance with the policy guidelines dated

15.02.2016 issued by Ministry of Coal. The auction has been envisaged as a transparent system of linkage allocation, which is based on competitive bidding. Various consumer friendly measures such as 3rd party sampling, exit option, no performance incentive, delivery from specified mine/siding, back-up mine in the event of Force Majeure, etc. have also been introduced. The auction is followed by signing of Fuel Supply Agreements (FSA) for the booked quantity. The tenure of the FSA is 5 years that can be further extended by another 5 years on mutual agreement. The performance summary of Tranche I, II & III of auctions is as under:

Sub-sector

Tranche - I

Tranche - II

Tranche -III

Total

Quantity

booked

(MTPA)

% gain

Quantity

booked

(MTPA)

% gain

Quantity

booked

(MTPA)

% gain

Quantity

booked

(MTPA)

% gain

Sponge Iron

2.05

0.51

4.29

10.10

2.54

7.20

8.88

7.55

Cement

0.68

0.16

0.77

0.90

0.12

0.00

1.57

0.56

CPP

18.07

8.97

8.18

14.85

4.59

22.05

30.84

12.68

Others

1.34

0.76

1.27

5.14

0.67

10.60

3.28

4.50

Steel (coking)

--

--

0.22

0.00

0.00

--

0.22

0.00

Others (coking)

--

--

0.04

0.00

0.36

2.97

0.39

2.68

Total

22.14

6.95%

14.76

10.60%

8.28

13.37%

45.18

9.64%

Note : % gain over non-power notified price

(vi) Under Special Forward E Auction scheme during the year 201 7-18, successful bid quantity was around 29 mill tonnes as against 47 mill tonnes in the last year. The premium gain through Special Forward E-auction over & above the notified price was 27% during the year 201718 as against 16% during 2016-17. In Exclusive E Auction scheme during 201 7-18, successful bid quantity was around 11.1 mill tonnes as against 6.3 mill tonnes in the last financial year. The premium gain through Exclusive E-auction over & above the notified price was around 27% during the year 2017-18 as against 9.3% in last financial year. During the period under review, around 55.1 mill. tonnes of coal was successfully bid under Spot E- auction to the successful bidders as against 53.7 mill. tonnes of successful bid quantity during 2016-17. The notional gain through Spot E-auction over & above the notified price was 66% during the year 2017-18 as against 25% during last financial year. About 0.7 Mill tes coal was successfully bid under Special Spot E-Auction during 2017-18 with gain of 39% over notified price whereas during last financial year about 6.2 Mill tonnes coal was successfully bid under this scheme with 20% gain over notified price.

Implementation of SHAKTI Policy of Government :

In consideration of the stressed assets in new power projects not having any long term linkages, on 17.05.2017, Cabinet Committee on Economic Affairs (CCEA) approved a new policy for allocation of future coal linkages in a transparent manner for such power sector consumers. This policy is known as 'Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India' (SHAKTI). The policy is an important initiative in alleviating a key challenge in power sector i.e. lack of coal linkage and is expected to positively contribute in resolution of a number of stressed assets. Ministry of Coal (MoC) circulated the policy guidelines vide their letter dated 22.05.2017.

The salient features of the policy are:

(A)    Under the old regime of LoA-FSA :

i.    FSA may be signed with the pending LoA holders after ensuring that the plants are commissioned by 31.03.2022.

ii.    The 583 pending application for LoA may be closed.

iii.    The capacities totaling 68000 MW as per CCEA decision dated 21.06.2013 would continue to get coal at 75% of ACQ even beyond 31.03.2017.

iv.    About 19000 MW capacity out of 68000 MW which could not be commissioned by 31.03.2015 may be allowed coal supply under FSA at 75% of ACQ provided these plants are commissioned within 31.03.2022.

v.    Actual coal supply to power plants shall be to the extent of long term PPA and medium term PPAs to be concluded in future against bids to be invited by Discoms as per bidding guidelines issued by MoP.

With these, the old regime of LoA-FSA would come to finality and fade away.

(B)    Following to be considered under new more transparent coal allocation policy for power sector, 2017-SHAKTI (Scheme for Harnessing and Allocating Koyala (coal) Transparently in India)-

i.    CIL/ SCCL may grant coal linkages to State/Central Gencos/JVs at notified price on recommendations of Ministry of Power.

ii.    Linkages to IPP having PPA based on domestic coal but no linkage:

a.    shall be on auction basis where bidders shall quote discount on tariff.

b.    Bid Evaluation Criteria shall be the non-zero Levellised Value of the discount.

iii.    Linkages to IPPs/ Power Producers without PPAs shall be on auction basis where methodology would be similar to that followed under linkage auction to non-regulated sector i.e. the bidders would bid for premium above the notified price of the coal company.

iv.    Coal linkages may also be earmarked for fresh PPAs, by pre-declaring the availability of coal linkage with description, to the States. States may indicate these linkages to Discoms/ SDAs.

v.    Power requirement of group of States can also be aggregated and procurement of such aggregated power can be made by an agency designated by Ministry of Power or authorized by such States on the basis of tariff based bidding .Linkages shall be granted for full normative quantity to Special Purpose Vehicle (SPV) incorporated by nominated agency for setting up Ultra Mega Power Projects (UMPP) under Central Government initiative through tariff based competitive under the guidelines for determination of tariff, on the recommendation of MoP.

vi.    MoC in consultation with MoP may formulate a detailed methodology of a transparent bidding process for allocating coal linkages to IPPs, having PPAs based on imported coal, with full pass through of cost saving to consumers.

Under A (i) of SHAKTI Policy, 3 FSAs have been signed for 11.91 MT for the aggregated capacity of 3300 MW and under B(i) 1 FSA has been signed for 3.927 MT for the capacity of 1200 MW till 31st March,18.

CIL successfully conducted Linkage Auction under the B(ii) provision for the Plants having PPAs but no linkages through a bidding based on tariff discount in September 201 7. Out of 31 bidders who submitted EOI, 14 bidders were found eligible by CEA and 10 bidders submitted EMD and turned out successful for booking 27.18 MTPA.

Flexi Utilization of Domestic Coal for reducing cost of Power generation:

Government introduced a policy for flexi utilization of domestic coal by State/Central Gencos to reduce the cost of electricity in June 2016 following approval of Cabinet. Under the policy, State/Central Gencos are allowed to aggregate their contracted quantity for supply to Plants on efficiency based parameters to reduce cost of power generation. CIL implemented the policy through signing of a supplementary agreement with the State/ Central Gencos in April 2017. Out of a total annual contracted quantity of 419.9 MTPA with State/Central/CPSE Utilities, CIL signed supplementary agreement for 416.1 MTPA covering 99.1 %.

3.6    Coal Beneficiation:

Presently CIL is operating 15 Coal Washeries with a total coal washing capacity of 36.8 million tonnes per year, of which 11 are coking and the rest are non-coking with capacity of 20.58 and 16.22 MTY respectively. The total washed coal production from these existing washeries for the year 2017-18 has been 12.45 Million Tonnes.

In addition to above, CIL has planned to set up 18 new Washeries with state-of-the-art technologies in the field of coal beneficiation with an aggregate throughput capacity of 95.6 MTY#.

Out of these washeries, 9 are planned to wash coking coal with a cumulative capacity of 28.10 Mty, and the other 9 are being set up to wash non-coking coal with an aggregate capacity of 67.5 Mty#

The major bottlenecks for setting up of these washeries are mainly availability of Land, Forest, Environmental and other Statutory Clearances, Failure of L1 bidders to comply to tender requirements, etc, in addition to the absence of firm commitment from the intended customers regarding acceptance of washed coal at value added prices.

# Ashoka Non-coking coal Washery capacity is being planned to be enhanced by 2 Mty. Presently it is planned to be a 2 Mty. Washery.

3.7    Stock of Coal

The stock of coal (net of provisions) at the close of the year 2017-18 was Rs, 4979.09 Crores (earlier year Rs, 7412.79 crores), which was equivalent to 0.73 month value of net sales (previous year 1.18 months). The company-wise position of stock held on 31st March 2018 & on 31st March 2017 are given in Annexure 10.

3.8    Trade Receivables

Trade Receivables i.e. net coal sales dues outstanding as on 31.03.2018, after providing Rs, 1778.37 crores (previous year Rs, 2013.99 crores) for bad and doubtful debts, was Rs, 8689.16 crores (previous year Rs, 12476.27 crores) which is equivalent to 0.82 months gross sales of CIL as a whole (previous year 1.05 months). Subsidiary-wise break-up of trade receivables outstanding as on 31st March 2018 as against 31st March 201 7 are shown in Annexure 11.

3.9    Payment of Royalty, Cess, Sales Tax, Stowing Excise Duty, Central Excise Duty, Clean Energy Cess, Entry Tax & Others

During the year 201 7-18, CIL and its Subsidiaries paid/adjusted Rs, 44,046.57 crores (previous year Rs, 44068.28 crores) towards Royalty, Cess, Sales Tax and other levies as detailed below:-

Figures in Rs, Crores

Particulars

2017-18

2016-17

Royalty

9,993.84

8,745.84

Additional Royalty (MMDR Act):

   

-DMF

2,982.26

3,964.47

-NMET

204.14

221.16

Goods and Service Tax :

   

-CGST

891.43

-

-SGST

892.92

-

-IGST

903.67

-

GST Compensation Cess

16,631.78

-

Cess on Coal

1,631.63

1,706.37

State Sales Tax / VAT

903.66

2,787.91

Central Sales Tax

204.51

1200.09

Stowing Excise Duty

217.47

538.00

Central Excise Duty

512.64

2,617.56

Clean Energy Cess

7,099.73

21,062.06

Entry Tax

77.80

283.82

Others

899.09

941.00

Total

44,046.57

44,068.28

Subsidiary-wise State wise details are given in Annexure 12.

4.    COAL PRODUCTION & FUTURE OUTLOOK

Raw coal production and production from underground and opencast mines.

Production of raw coal was 567.36 Mill Te during 2017-18 compared to 554.14 Mill Te during 2016-17. Coal production from underground mines in 2017-18 was 30.54 Mill Te compared to 31.48 Mill Te during 2016-17. Production from opencast mines during 2017-18 was 94.62% of total raw coal production. Subsidiary wise production, production from underground and opencast mines and coking and non-coking production is disclosed under Annexure 13.

Reasons for less production than the target 2017-18 :

Despite best and consistent efforts, constraints that have impeded the growth in coal production are as under:

(i)    Issue of Land acquisition, physical possession of land, demand of compensation beyond company norms and R&R affected production in many of the subsidiaries of CIL.

(ii)    Delay in grant of enhanced EC capacity and forestry clearance also played a major role in loss of production.

(iii)    Law and Order problem by local leaders and villagers in almost all the subsidiaries specially ECL, BCCL, CCL and MCL.

(iv)    Sudden stoppage of Dhanbad-Chandrapura railway line affected production in BCCL.

(v)    Evacuation constraint at Magadh and Amrapali OCP due to non-completion of Tori-Shibpur railway track affected coal production in CCL.

(vi)    Accumulation of high coal stock at many of the cost plus OC mines due to less lifting by consumer affected production in WCL. Washed Coal (Coking) Production

Subsidiary-wise production of Washed Coal (Coking) is given in Annexure 13A.

Overburden Removal

Company-wise overburden removal is disclosed in Annexure 13B.

FUTURE OUTLOOK

With continued commitment to play major role in achieving nation's energy security, CIL is poised to set an ambitious target of 610 Mt. in the FY 2018-19 with an annualized growth of about 7.52 % over the production of 567.36 Mt. achieved in 17-18.

As per one Billion tonne document prepared in 2014-15, CIL was mandated to produce 908.01 Mt by the year 2019-20, subject to timely grant of EC & FC, land acquisition/possession and associated R & R, coal evacuation facilities, allocation of coal blocks & other relevant issues.

Meanwhile, consequent upon the outcome of Paris Protocol on climate change and changes in the environmental paradigm and coal demand, there was an urgent need of revisiting the 1 Bt. programme. Ministry of Coal is now in the process of finalizing the Vision 2030 document for coal sector through a reputed consultant in which projection for likely demand of coal in the country are being assessed under different scenarios considering the views of Ministry of Power & Scenario emerged due to Paris protocol etc. The document is likely to be finalized shortly.

In view of above, roadmap for coal production beyond 2018-19 along with other related issues would be relooked on the basis of that demand forecast. In the light of Paris Protocol and consequent upon changes in world energy sector scenario, CIL is looking forward to diversify its operations towards Renewable energy like Solar Power and Clean Energy sources like CMM, CBM, CTL, UCG etc following the directives of GoI. Following to that mission, MoC/CIL is in the process of finalizing 'Vision Document 2030' to decide on future course of operation for sustainable entity in the nation's energy sector.

The capital expenditure for the year 2018-19 has been set at ' 9500 crores. Further, CIL has planned to invest substantial amount in various other projects viz. Ultra Mega Power Project (UMPP), Solar Power, Revival of Fertilizer Plants, acquiring coking coal assets in Australia and Canada, Coal Gasification, CBM etc. during 2018-19.

5.    POPULATION OF EQUIPMENT

The Population of Major Opencast Equipment (Heavy Earth Moving Machinery) as on 1.4.2018 and as on 1.4.201 7 along with their Performance in terms of Availability & Utilization expressed as percentage of CMPDI Norm is disclosed in Annexure 14.

There are increase of 37 nos. of Shovel in ECL,BCCL,NCL & WCL on receipt of New Equipment ordered. CIL is planning to procure 6 nos. Dragline valued approximately ' 1176 Crores, 77 nos. Shovel valued approximately Rs, 2344 Crores, 342 nos. Dumper valued approximately Rs, 4213 Crores, 119 nos. Dozer valued approximately Rs, 419 Crores and 33 nos. Drill valued approximately Rs, 50 Crores in the next 3 years.

Performance of HEC Shovel at MCL was not satisfactory, which affected availabilty and utilization. Matter has been taken up with M/s HEC for improvement. Dragline of Sonepur Bazari Project , ECL has been commissioned in December 2017, which was under long breakdown since June 2016 due to non-supply of imported spares.

Land Problem, Rehabilitation problem, shortage of working face were major reason for less HEMM Utilization in ECL, BCCL & CCL and exhaustion of coal reserve in some of the mines at SECL &WCL were the major hindrace of HEMM Utilization. Efforts are being made to improve the utilization.

6.    CAPACITY UTILIZATION

The overall system capacity utilisation for the year 2017-18 was 83.30% against 84.51% in 2016-17. Subsidiary wise reasons for less achievement in capacity utilisation are as under :-

ECL : Both production and offtake of Rajmahal OC suffered due to R&R issues in respect to Bhadutola village involving shifting of villagers which could be resolved in the month of Jun'17 and completed in Feb'18. Other major issues are-delay in Stage-II FC in Chitra OC, R&R problem in New Kenda mines, R&R issue in Khottadih OC for shifting of Bilpahar village etc.

BCCL : Sudden stoppage of Dhanbad-Chadrapura railway line for safety reasons on short notice had affected coal dispatch and consequently both production and off take was slowed down from Kusunda, Sijua, Katras and Govindpur areas.

CCL : Delay in grant of enhancement of EC capacity for Karo OC and Selected Dhori OC resulting into stoppages of those mines from Nov'17, evacuation problem in Magadh & Amrapali OC contributed lower overall capacity utilization of CCL.

NCL : Under performance of one of the contractor engaged at Bina Project for OB removal working.

WCL : Less lifting of coal from cost plus mines of Bhatadih, Urdhan, R&R issues at Pauni 2&3, underperformance of contractor of Dinesh, MKD 1 etc.

SECL : Delay in grant in EC at Gevra, Kusmunda, delay in possession of land in Batura, Bijari mines.

MCL : FC issues in Ananta & Hingula, Land and R&R issues in Kaniha, Balaram, Hingula, Bharatpur mines. Delay in grant of EC at Kulda, Bhubaneswari, Lakhanpur under special dispensation.

Subsidiary wise details for the year 2017-18 vis-a-vis 2016-17 are disclosed in Annexure 15.

7. PROJECT FORMULATION

7.1 Project Implementation:

a)    Projects Completed During the year 2017-18:

10 coal projects with an ultimate capacity of 41.39 Mty with sanctioned capital of Rs, 1524.27 Crores have been completed during the year 201 7

18. The subsidiary-wise details of project completed during 2017-18 are disclosed in Annexure 16.

b)    Projects started Production during the Year 2017-18: NIL

c)    Status of Ongoing Projects:

114 coal projects costing Rs, 20 Crores and above are in different stages of implementation. Out of 114 coal projects, 55 projects are running on schedule and 59 are delayed.

Status of Ongoing Projects Costing Rs, 20 Crores and above

Projects

Total Projects

Projects On Schedule

Projects Delayed

Mining

114

55

59

Reasons for the Delay :

59 projects are delayed due reasons as furnished below:

Reasons of Delay

No of delayed projects

ISSUES IN EXECUTION OF TENDERS

12

GRANT OF FC

18

FC, LAND & R&R

2

LAND & R&R

13

RECAST PR UNDER FINALIZATION

7

EVACUATION FACILITY

3

R&R

1

OTHERS

3

TOTAL

59

7.2 Projects Sanctioned (Costing Rs, 20 Crores & above):

a)    Projects sanctioned by CIL Board

4 coal mining projects for an ultimate capacity of 24.60 Mty with a total capital investment of Rs, 4155.46 Crores have been sanctioned by CIL Board during the year 2017-18. The details are disclosed in Annexure 16.

b)    Non Mining Projects Sanctioned by CIL Board:

Only one Non-mining project has been sanctioned by CIL Board during the year 2017-18. The details are disclosed in Annexure 16.

c)    Projects Sanctioned by Subsidiary Company Boards: NIL

d)    Non Mining Projects sanctioned by Subsidiary Boards

6 Non mining projects with a capital of Rs, 1473.32 Crores. have been sanctioned by subsidiary Boards during the year 2017-18. The details are disclosed in Annexure 16.

7.3 Revised Project/RCE Sanctioned by CIL Board:

a) RCE/RPR/UCE sanctioned by the CIL Board during the year 2017 - 18 was as under: -

Project

Subsidiary

Date of

Sanctioned

Sanctioned Capital

   

Approval

Capacity (Mty)

(Rs. Crores)

RCE of Lekhapani OCP

NEC/CIL

05-10-2017

0.25

109.44

TOTAL

0.25

109.44

b) RCE/RPR/UCE sanctioned by the Subsidiary Coal Companies during the year 201 7-2018: - NIL

7.4 Key Strategies:

(i)    Critical Railway Links:

In order to achieve the planned growth in production and evacuation in future, CIL has undertaken major Railway Infrastructure Projects, implemented either by Railways or JV Companies formed with IRCON representing Railways, Subsidiary Company representing CIL and concerned State Government.

The following lines have been completed during 2017-18 and commissioned as indicated:

-    The Tori-Shivpur Single line up to Bukru commissioned on 09.03.2018.

-    The Jharsuguda Barpali Line has been commissioned on 05.04.2018

13 projects for coal evacuation have been identified:

-    3 funded by coal companies.

-    4 funded through SPVs.

-    6 Railway funded projects.

On deposit Basis by CIL (3 Nos)

1.    Tori - Shivpur (Double BG Line).

2.    Jharsuguda - Barpalli Sardega Rail link (SECR) - Commissioned on 05.04.2018.

3.    Rail Connectivity Lingaraj Silo with existing Deulbeda siding at Talcher Coalfields of MCL.

To be taken up by Railways (2 Nos)

1.    Singrauli to Shaktinagar via Karaila Road (Doubling of the line) (EC Railways).

2.    4th line in Jharsuguda to Bilaspur (SECR).

Through JVs/SPVs by CIL (1 No)

1. Angul- Balram rail link (through MCRL).

The balance 7 rail lines that are likely to facilitate coal evacuation are envisaged to come up in the future as detailed below:

Through JVs/SPVs by CIL (3 Nos)

1.    Shivpur-Kathautia Railway Line.

2.    East Corridor through CERL.

3.    East-West Corridor through CEWRL.

To be taken up by Railways (4 Nos)

1.    Third line Barkakana-Barwadih-Garhwa Road.

2.    Fourth line Jharsuguda to Bilaspur.

3.    DFC- Dadri to Sonenagar & extension up to Koderma.

4.    Third and fourth lines from Talcher to Budhapunk (10 km) & Third line from Budhapunk to Rajatgarh (62 km).

(ii)    Acquisition and Possession of land:

In all subsidiaries of Coal India, the major portion of land is acquired under the Coal Bearing Areas (Acquisition & Development) Act, 1957. During 2017-18, notification under section 9(1) has been issued for 10688.904 Ha and notification under section 11(1) has been issued for 11899.112 Ha.

During 201 7-18, 3687.61 Ha of land has been taken in possession in different subsidiaries of Coal India.

(iii)    WEB Based Online Monitoring System:

Monitoring of 69 coal mining projects costing more than Rs, 150 Crores with Project monitoring software MS Project have been started in Coal India limited during the year 2016-17. Regular interactions with subsidiaries is being done. Regular workshops are also being organised to train the executives in MS Project software.

Project Monitoring Division of CIL in association with CMPDI recently launched a portal MDMS (Mine Data Base Management System) to monitor the ongoing projects costing Rs, 20 Crores and above in CIL.

Crucial issues are also being uploaded by CIL and its subsidiary companies on the MOC e-CPMP portal and MOC is vigorously following up with the state governments and other associated ministries by holding meetings with concerned officials to expedite EC & FC approvals.

7.5 One Billion Coal Production Programme

Ministry of Coal is preparing Vision 2030 document for coal sector through a reputed consultant in which projection for likely demand of coal in the country are being assessed under different scenarios considering the views of Ministry of Power & Scenario emerged due to Paris protocol. The document will be finalized shortly. In view of above roadmap for coal production beyond 2018-19 along with other related issues would be relooked on the basis of that demand forecast.

Based upon the studies of the consultant, it has been envisaged to match the coal production plan of CIL as per emerging market scenario which requires CIL to augment coal production of 1 Bt. by FY 2025-26 for which conceptual planning is underway at different level.

8. CONSERVATION OF ENERGY

Conservation of energy always remains a priority area and CIL/Subsidiaries have extensively exercised various measures towards reduction in specific energy consumption.Even though Coal Production has increased by 2.4% in 2017-18 compared to 2016-17, electricity consumption has reduced to 4605.70 Million Units vis-a-vis 4886.83 Million Units during 2016-1 7, a reduction of 5.75% in absolute terms. In terms of total coal production Electricity Consumption during 2017-18 was 8.11 kWh/T vis-a-vis 8.82 kWh/T during 2016-17 with a reduction of 8.05%. However, in terms of composite production, Specific Energy Consumption (kWh/CuM) during 2017-18 was 2.99 kWh/CuM vis-a-vis 3.19 kWh/ CuM during 2016-1 7 a reduction of 6.27% from previous year.

Some of the salient measures taken by CIL/Subsidiaries for energy conservation are stated below :-

-    CMPDIL has undertaken energy conservation studies in 2017-18 and carried out Diesel Audit & Benchmarking of specific diesel consumption as well as Electrical Audit & Benchmarking of specific electrical energy consumption in various opencast and underground mines situated in different subsidiaries of Coal India Limited by BEE (Bureau of Energy Efficiency) accredited Energy Auditors.

Diesel Audit and Benchmarking carried out by CMPDIL in 91 opencast mines in different subsidiary companies of CIL revealed an aggregate saving potential of 17173 kilo litres/year in diesel consumption.

Electrical Audit and Benchmarking carried out in 04 mines (03 opencast mines and 01 underground mine) revealed an aggregate saving potential of 42.4 million units/year.

-    MoU has been signed between CIL and EESL (Energy Efficiency Services Limited) on 08.02.2016 for implementation of Energy Efficiency Projects in CIL and its Subsidiaries.

Accordingly, high watt luminaries /conventional light fittings are being replaced with low power consuming LEDs of appropriate wattage in majority of the places for street lighting, office and other work places, townships etc., thereby creating huge saving potential in electricity consumption.

-    Power capacitors of appropriate kVAR rating have been installed to maintain higher power factor and avail maximum benefit on power factor incentive from power supply agencies as well as reduction in Maximum Demand. Almost all the areas of the subsidiaries companies have maintained Power Factor as high as 95% during 2017-18.

-    Air Conditioners (AC) and Refrigerators of 5 Star Rating have been procured against replacement of old conventional ACs and Refrigerators in different areas of subsidiaries.

-    Energy audit of selected projects have been conducted by CMPDIL

-    In addition to above, some additional measures are being taken by CIL / Subsidiaries for conservation of energy, some of which are as follows:

?    Auto timer based on-off switches in most of the street lighting, CHPs and township areas to ensure avoiding unnecessary power consumption during odd hours.

?    Construction of strata bunkers in underground (UG) mines to eliminate idle running of belt conveyors, thereby saving electricity.

?    Re-organization of LT (Low Tension) overhead line by Aerial Bunched Cable to avoid unauthorized power tapping.

?    Monitoring of load pattern and demand side management of supply points limiting maximum demand wherever practicable by staggering avoidable load from peak hours to off-peak hours.

?    Re-organizing of dewatering pipelines and reduction of stage pumping as far as practicable.

?    Re-organization of power distribution system to minimize distribution loss.

?    Laying of cables directly through bore holes for power supply to underground mines to reduce overall length wherever feasible. The above measures taken for energy conservation are indicative only and not exhaustive.

In addition to above, CIL / Subsidiary Companies are also pursuing use of alternative energy sources. Various steps have been taken for utilizing solar power as alternate sources of energy, some of which are as stated below :

?    In kilo-watt scale, roof top solar plants are in successful operation at various places since their commissioning. Some of these operating plants are at Corporate Office of Coal India Ltd, New town, Kolkata (160 kWp), CMPDIL HQ and regional institute (351kWp), different areas of ECL (148kWp), Nagpur and Ballarpur area of WCL (140kWp), HQ office building and Barkakana of CCL (425kWp) etc.

?    In megawatt scale, one ground-mounted solar power plant (2.016 MWp) is in operation at MCL HQ since it's commissioning on 13.10.2014.

9.    CAPITAL EXPENDITURE

Overall Capital Expenditure during 2017-18 was Rs, 9334.55 crores as against Rs, 7,700.06 crores in previous year. Capital Expenditure incurred during 201 7-18 is 121.23% of BE (99.16% in 2016-1 7). Subsidiary-wise details of which are given in Annexure 17.

10.    CAPITAL STRUCTURE

The authorized share capital of the company as on 31.03.2018 was Rs. 8904.18 crores, distributed between Equity and Non-cumulative redeemable preference shares as under:

800.00.00.000    Equity Shares of Rs, 10/- each (Previous Year

800.00.00.000    Equity Shares of Rs,10/- each)

Rs,

8000.00 crores

90,41,800 Non-cumulative 10% redeemable Preference Shares of Rs, 1000/- each (Previous Year 90,41,800 Non-cumulative 10% Redeemable Preference Shares of Rs, 1000/- each)

Rs,

904.18 crores

Total

 

8904.18 crores

Listing of shares of Coal India Limited in Stock Exchanges:

The shares of Coal India Ltd. is listed in two major stock exchanges of India, viz. Bombay Stock Exchange and National Stock Exchange on and from 4th November, 2010.

Post buy-back on 28.10.2016, the number of fully paid equity shares as on date stands at 6,20,74,09,177. During the year, there is no change in number of shares.

The details of disinvestment of shares by Govt. of India is furnished below:

Sl. No.

Financial Year of Disinvestment

% of shares disinvested

No. of shares disinvested

Mode

1

2010-11

10.00%

63,16,36,440

IPO

2

2013-14

0.35%

2,20,37,834

CPSE-ETF

3

2014-15

10.00%

63,16,36,440

OFS

4

2015-16

0.001%

83,104

CPSE-ETF

5

2016-17

1.248%

7,88,42,816

Buyback

6

2016-17

0.92%

5,71,56,437

CPSE-ETF

7

2017-18

0.31%

1,92,99,613

Bharat 22-ETF

Hence, the number of shares held by Govt. of India as on 31.03.2018 stood at 4,87,56,71,716 i.e.78.546% of the total 6,20,74,09,177 number of shares (earlier year 4,89,49,71,329 i.e. 78.857% of total number of shares ). Pursuant to above, the shareholding pattern in CIL stood as follows:

Particulars

As on 31.03.2018

As on 31.03.2017

 

Shareholding

Share Capital

Shareholding

Share Capital

 

Pattern (%)

(Rs, Crore)

Pattern (%)

(Rs, Crore)

Government of India

78.546 %

4875.67

78.857 %

4894.97

Other Investors

21.454%

1331.74

21.143%

1312.44

Total

100.000%

6207.41

100.000%

6207.41

11. BORROWINGS

Aggregate borrowings of CIL (including Current and Non-Current) stood at Rs, 1061.18 crores in 2017-18 from Rs, 410.77 crores in 2016-17, as detailed below.

Figures in Rs, Crores

Particulars

2017-18

2016-17

Foreign Loans including deferred credits

   

EDC Canada

161.20

167.2

Banque Nationale De Paris and Natexis Banque, France

7.09

6.64

Term loan from other Banks

838.86

-

IRCON International Ltd.

39.01

171.44

Chattisgarh State Infrastructure Development Corpn Ltd.

15.02

65.41

TOTAL

1061.18

410.69

In addition to the above Short term Borrowings of CIL stood at Rs, 476.54 crores in 2017-18 from Rs, 2603.78 crores in 2016-17, as detailed below.

 

Particulars

2017-18

2016-17

Loan repayable on demand - From Banks

 

150.00

2603.78

- From Other Parties

 

-

-

Other Loans

 

326.54

-

TOTAL

 

476.54

2603.78

The debt servicing has been duly met in case of the loans / deferred credits whenever due.

The subsidiary companies of SECL M/s Chattisgarh East Railway Limited (CERL) & M/s Chattisgarh East-West Railway Limited (CEWRL) have taken loan from IRCON International Ltd and Chattisgarh State Infrastructure Development Corpn Ltd. with repayment period of 5 years excluding moratorium period not exceeding 5 years from the date of signing of Loan Agreement.

12. INTERNATIONAL CO-OPERATION

Coal India is envisaged for foreign collaboration with a view to:

-    Bring in proven and advanced technologies and management skills for exploiting UG and OC mines, coal preparation, coal utilization, protection of environment and related activities.

-    Exploration and exploitation of Methane from Coal bed, abandoned mine, ventilation air, shale gas, coal gasification, etc.

-    Locating overseas countries interested in Joint Venture in the field of coal mining with special thrust on coking coal mining.

The priority areas included acquisition of modern and high productive underground mining technology, introduction of high productive opencast mining technology, improvement in working in underground in difficult geological conditions, fire control and mine safety, coal preparation, application of 3D seismic survey for exploration, extraction of coal bed methane, coal gasification, application of Geographical Information System (GIS), satellite surveillance, subsidence monitoring, environmental control, overseas ventures in coal mining.

CIL aims to acquire suitable technology through international bidding. Bi-lateral cooperation is also being encouraged for locating availability of cost effective and latest technologies in the aforesaid areas. CIL, therefore, has been following both the routes.

Following are the details of activities that took place with various countries during 2017-18.

FOREIGN COLLABORATION

Indo-US Collaboration:

Status of On-going Projects:

a) Development of Coal Preparation Plant Simulator

The identified US consultant M/s Sharpe International LLC, USA (SI) was awarded the work in October 2009 for development of a Coal Preparation Plant Simulator. Total work was split into 18 activities out of which 11 activities were completed and payment to the tune of 40% value (USD 150,000) had been released in line with provision of the contract. Later in October 2013, SI expressed their inability to complete the work. US representatives were requested to take up the matter with Mr. Mark Sharpe of SI for a meaningful conclusion of the project. US side had advised to contact Mr. Carl Jacobson in this regard.

Consequently, Mr. Carl Jacobson was contacted for submission of a proposal for execution of the project within the framework of existing agreement. From the perusal of the proposal submitted by him, it was noted that M/s CoalSim was responsible for the development of software based on the mining engineering expertise provided by Mr. Mark Sharpe.

Further, Mr. Manoj Mohanty from Southern Illinois University (SIU) Carbondale, USA vide his email dated 08.01.2016 expressed desire "to complete the project that SI could not complete". Mr. Mohanty was requested to submit his proposal through US DoE and MoC, as the project was identified under Indo-US Coal Working Group work plan. Subsequently, a Proposal from Mr. Mohanty was received through US DoE and MoC, Govt. of India. Comments of CMPDI in this regard were sent to Advisor (Projects), MoC on 03.10.16 and also to Mr. Smouse Scott of DoE on 27.10.2016. In response to the queries raised by Dr. Mohanty of SIU (vide e-mail dated 07.11.2016 forwarded by Dr. Scott Smouse of US DOE), suitable reply was sent on 23.11.2016.

On 22.12.2016, Dr. Scott Smouse of US DOE sent the reply as mailed to him by Dr. Mohanty indicating the project direct cost for the subject assignment with Power Plant economics increased substantially to US$ 3,50,000 + additional 47.5% charge on the project direct cost as research overhead expenses.

CMPDI vide email dated 09.01.201 7 requested Dr. Scott Smouse to look into the matter and asked Dr. Mohanty to respond accordingly so that the final proposal can be prepared and submitted at the earliest with due consideration to fund limitation as the balance fund left in the project is US$ 225,000. Meanwhile, with special initiative of Dr. Scott Smouse, discussion between the expert team of CMPDI and Dr. Mohanty was held on 11.05.1 7 on various technical issues for formulation of the revised project proposal. Dr. Mohanty opined that he would submit a revised proposal in Sept. 2017 with revised project cost to Dr. Scout Smouse of US DOE for his review. The outcome of the meeting is to be discussed during the next Indo-US CWG meeting.

In reply to the query on the status of project submission (vide e-mail 25.08.2017), Dr. Mohanty has shown his eagerness (vide e-mail dated 31.08.2017) and desired to involve IIT-ISM, Dhanbad in the project. Further, Dr. Mohanty vide his email dated 12.09.201 7 communicated that the project cost would be USD 400,000 + 44% overhead cost and also suggested to find somebody else who can complete the project within the recommended budget.

In reply to the above, CMPDI once again requested Dr. Mohanty vide email dated 25.09.2017 and 20.12.2017 to submit the project proposal as per the prescribed format (incorporating the observations of CMPDI on the earlier project proposal as communicated to him vide email dated 07.09.201 7) to complete the remaining activities of the project utilizing the balance fund available (i.e. USD 225,000) in the project. On confirmation from Dr. Mohanty, appropriate decision can be taken in this regard. In reply, Dr. Scott Smouse of US, DoE vide his email dated 20.12.201 7 suggested some possibilities for further continuation of the project. The same is under consideration.

b) Cost Effective Technology for Beneficiation and Recovery of Fine Coal

US DOE had identified Virginia Tech University (VTU) for establishing an efficient technique for beneficiation & dewatering of Indian coking coal fines through the testing of coal samples in lab and pilot plants at VTU for identification of state-of-the-art technologies based on which a demonstration plant was to be installed in Sudamdih Washery in BCCL. A joint project proposal was drawn and approved by CIL R&D Board in June, 2008. The VTU, however, expressed its inability to sign an international agreement and as such the project could not be started.

During the 10th Indo-US CWG meeting in New Delhi on 10.03.2014, US representatives were requested to take up the matter with VTU for meaningful conclusion of the project. US side had advised to contact Dr. Roe Hoan Yoon of Virginia Tech for further discussion in this regard. Subsequently the issue was taken up with Dr. Roe Hoan Yoon to obtain methodology for execution of the assignment. Dr. Yoon informed that VTU had developed a Hydrophobic-Hydrophilic Separation (HHS) process for fine Coal Cleaning and would be submitting a proposal on the same. However, since the project was identified under Indo-US Coal Working Group work plan, Dr. Yoon was requested to route his proposal through US DoE and MoC.

Meanwhile, Shri R. B. Mathur, President, Business Development & Mining Strategy, Virginia Mining Resources Pvt. Ltd. (VMR), submitted, vide his email dated 09.05.2016, that VMR was a sister concern of Minerals Refining Company (MRC) which is associated with Dr. Yoon in development of HHS Technology. He expressed to undertake a pilot project on HHS Technology under S&T Programme in India. He was requested to submit a proposal with details of the HHS Technology, its availability and cost, etc. for initiating appropriate action.

Subsequently, a Proposal titled "Application of the Hydrophobic-Hydrophilic Separation (HHS) Process for the Beneficiation of Indian Coals" from M/s MRC was received through US DoE and MoC, Govt. of India. Comments of CMPDI on the proposal was sent to Advisor (Projects), MoC on 07.10.16 and also to Mr. Smouse Scott of DoE on 27.10.2016. Further, Shri R.B. Mathur submitted a revised proposal on 21.11.2016 with incorporation of the PROPOSED BUDGET BY TASK, i.e. the total cost of involvement of US side is USD 1,508,312 as indicated earlier, has been split into different tasks which is related to lab scale testing and consultancy services by the project proponent. CMPDI informed Dr. Scott Smouse on 02.12.2016 that the indicated cost mentioned above was towards Laboratory tests on coal samples (to be transported by CMPDI to Virginia Tech Laboratory in USA), detailed characterization for pilot design, design of a POC-scale plant, conceptual design of a Demonstration Plant and developing a flowsheet to Retrofit in existing plant only. It does not include any supply item, not even the cost towards HHS set up required for POC-scale plant, without which the objective of the HHS scheme cannot be accomplished. Accordingly, Dr. Scott Smouse vide email dated 23.03.201 7 submitted a revised proposal as received from Virginia Minerals Refining Corp.

On 18.04.2017, CMPDI responded to Dr. Scott Smouse that Laboratory Tests and Detailed Characterization might be done in India through reputed NABL accredited or Council of Scientific and Industrial Research (CSIR) laboratories to reduce foreign exchange component and each element of POC Scale Design needed suitable justification with detailed elaboration as the cost appeared to be on higher side. The "Estimate for Building a POC Plant" in the United States also needs to be discussed with US proponent. During discussion with the expert team of CMPDI on 02.05.17, Prof. Roe Hoan Yoon of Virginia Tech University, USA, stressed that initially Indian coal samples were to be tested on HHS installation in USA to assess the suitability of HHS technology and for this purpose 5 drum fine coal samples are required to be transported to USA. It was clarified that transporting the coal samples to USA and getting tests done at VTU would incur cost, which will be difficult to arrange before approval of the project by CIL.

Based on further discussions, Mr. Scott Smouse of US DoE & Prof. Yoon of VTU were requested (vide email dated 21.08.2017) to submit the revised project proposal incorporating the observation /comments of CMPDI and as per the "Guidelines for implementing coal research projects" issued by MoC. In response, Mr. Scout Smouse vide mail dated 13.09.2017 proposed to restrict the Stage-I of the project up to laboratory test work to reduce the project cost. CMPDI, vide email dated 25.09.2017, indicated that limiting the scope of work to laboratory tests of coal samples would not meet the objective to introduce a state-of-the-art technology in India under Indo-US bilateral cooperation.

Moreover, it was learnt that M/s Hendricks of USA has developed a 'unique patented technology that refines coal and coal waste into pure hydrocarbon, removing substantially all the mineral matter and water in a novel and exclusive low cost process' and a commercial plant is expected to be commissioned in USA by May 2018. Necessary clarification in this regard has been sought from Virginia Tech University (VTU), USA by CMPDI to indicate the difference between the above concept and the methodology proposed by VTU as the above concept appears to be similar with the method proposed by VTU. Dr. Yoon, vide email dated 27.09.201 7, suggested to contact M/s Hendricks directly to know the technology they are using.

Meanwhile, technical discussion was held at CMPDI Ranchi on 09.11.17 with President (Business Development & Mining Strategy), Virginia Mining Resources Private Ltd. wherein CMPDI communicated its requirement of a revised proposal as per S&T guidelines. Mr. Scott Smouse of US DoE & Prof. Yoon of VTU were requested to submit revised proposal after incorporating the decisions of the discussion held on 09.11.201 7. Reply from Prof. Yoon of VTU is awaited.

a)    Underground Coal Gasification (UCG): UCG is one of the key areas under Indo-US collaboration. A project brief for capacity building in the field of UCG development was sent to MoC for consideration in India-US Coal Working Group Meeting held on 16th Sept. 201 5 at Washington, USA for the development of UCG in CIL command area. Initially, DoE indicated to approach UC-CIEE (California Institute for Energy and Env.) and thereafter, Lawrence Livermore National Laboratory requested to be associated. US DoE agreed to identify US Experts and inform the Indian side for further course of direct action. Response from DoE is awaited.

b)    Coal Mine Methane (CMM): CMM blocks have been identified in Raniganj Coalfield (ECL command Area) and Jharia Coalfield (BCCL command Area) of CIL for commercial exploitation of methane. US Experts may be requested to suggest suitable technology providers for commercial extraction of CMM & its utilization.

c)    Mine Rehabilitation & Reclamation of Indian coal mines: Projects on 'Sustainable mine closure activities and mining wasteland to be utilized as a source of livelihood for local community' were proposed to be carried out with the help of US agencies. In this regard, a proposal was received from M/s Norwest Corporation on 15th Dec. 2015.

After many deliberations on the proposal, CMPDI advised to route the proposal through Indo-US CWG platform prior to its submission to R&D Nodal Agency (i.e. CMPDI) for funding under CIL. Subsequently, a meeting was held at CMPDI with officials from M/s Norwest Corporation on 20th July 2016 and a decision was taken to formulate the proposal in two phases i.e. 'Study & Capacity Building (Phase-I)' and 'Implementation in one of the selected OC mines in CCL (Phase-II)' (CCL has given consent for study and implementation of the proposal in Amrapali OCP). M/s Norwest Corporation sent the revised draft proposal to CMPDI (Implementing Agency) on 06.09.201 6 for scrutiny. In the meantime, CMPDI incorporated the duly filled Annexures of the proposal and forwarded the same to M/s Norwest Corporation vide email dated 28.11.201 6 for incorporating their input in the Annexures before submission of the proposal.

Mr. Pat Akers, representative of M/s Norwest Corporation, after detailed discussions with CMPDI officials submitted revised draft proposal on 10th January 201 7. The revised proposal after incorporating comments of CMPDI was received through email dated 04.07.201 7. CCL has been requested for association in the project as a sub-implementing agency. After getting the consent from CCL, the same along with other observations will be sent to M/s Norwest Corporation, USA for resubmitting the proposal to MoC through Indo-US CWG platform for funding under CIL. The consent from CCL is awaited.

Indo-Australian Collaboration

Status of On-going Projects:

CMPDI has a Memorandum of Understanding (MoU) with Commonwealth Scientific and Industrial Research Organization (CSIRO) signed on 12th June, 2013 for a period of five years for furthering scientific cooperation. A team from CMPDI visited CSIRO, Australia in July 2015 for identifying possible collaborative areas in the field of clean coal technologies. During the visit of Secretary (Coal) in June, 2017 it was suggested to identify more areas for scientific cooperation.

a)    Capacity Building for CMPDI Lab

O CMPDI has established a state of the art Coal Bed Methane (CBM) lab that can carry out parametric studies for resource estimation and reservoir characterization for CBM and Shale gas.

O In March 2016, S&T Project titled "Capacity building for extraction of CMM Resource within CIL Command areas" was approved by Ministry of Coal (MoC) under Govt. of India S&T funding which is jointly implemented by CMPDI and CSIRO. The project is of three (03) years project duration. A Collaborative Understanding agreement for execution of the Project has been signed between CSIRO and CMPDI on 22nd December, 2016.

O CSIRO Project Team visited CMPDI, Moonidih Mine of BCCL and Chinakuri Mine of ECL during 9th -19th May, 201 7. During visit, the team interacted with the project personnel on gassiness issues. CSIRO team assisted CMPDI to draw the required technical specification of laboratory equipment to be procured by CMPDI for this S&T project. These equipment are being procured under the S&T funding. Project personnel were training by CSIRO during 11th - 16th March, 2018 at CMPDI.

b)    Ventilation Air Methane (VAM)

O CMPDI has formulated a project jointly with CSIRO titled "Abatement and utilization of Ventilation Air Methane (VAM) from working underground degree-III coal mine in India". The implementing agencies for the project will be CSIRO and CMPDI with BCCL as a sub-implementing agency. Identified project mine is Moonidih Underground Mine in Jharia coalfield of Bharat Coking Coal Ltd. (BCCL).

O CIL R&D Board has approved the project in principle with 100% retroactive funding at present and in due course 40% should be reimbursed from National Clean Energy Fund (NCEF) with directive to reduce duration of project from 42 to 30 months in consultation with CSIRO. CSIRO has agreed to reduce the project duration to 36 months.

O The revised proposal was placed in the 26th Meeting of R&D Board of CIL held on 27th Dec, 2016 and the Board advised to place the proposal before the Apex Committee with certain modification.

O As per direction of the 26th Meeting of R&D Board of CIL held on 27th Dec, 2016, draft collaborative agreement was submitted by CSIRO which was sent to BCCL on 19th May 2017 for their comments. The comments received from BCCL was forwarded to CSIRO, Australia vide email dated 22.09.2017 which responded to all the queries made by BCCL.

O BCCL, vide letter dated 01.12.2017, informed that there was no methane gas collection in any well at CBM site, Moonidih. Locating the VAM test unit at CBM site will require long pipe line to take the VAM to test site. As such, mine site would have been advantageous over the CBM site. However, exact location of the VAM test unit is to be identified by CSIRO.

O In reply, vide email dated 04.12.201 7, CSIRO stated that 0.2% methane in mine air exhaust may not be sufficient for the study. CSIRO also proposed to use CNG to increase the VAM concentration for site trial of VAM test unit. Amount of required CNG will be determined based on the VAM concentration and technology selected. The same has been communicated to BCCL. Further action on the project proposal will be taken after receipt of the comments from BCCL

c) Other collaborative initiatives

O Taking forward the joint statement made by the Honorable Prime Ministers of India and Australia on 18.11.2014, agreeing to cooperate on Energy and Clean Coal Technologies and exploring opportunities for partnership between Australian institutions and Indian School of Mines, Dhanbad, MoUs were signed between IIT (ISM) Dhanbad, India and six universities and two research organizations of Australia, viz. Curtin University of Technology, University of New South Wales, University of New Castle, University of Wollongong, University of Western Sydney, University of Queensland, SIMTARS, and CSIRO; for research and academic collaborations in the areas of Energy, Clean Coal Technologies and Mines Safety.

O Australia - India Center for Clean Coal and Energy Technologies (AICCET) has been established at IIT (ISM) Dhanbad and Curtin University, Perth for conducting joint research in the areas of Energy and Clean Coal Technologies. In the realm of this center, two major research activities have been initiated by IIT (ISM), Dhanbad and Coal India Limited (CIL) with Australian collaborations, which are (i) conversion of high ash low rank Indian coal to chemicals and (ii) design of improved flow sheets for high ash coal washing to reduce the percentage of ash in feed coal of different industries.

O The Centre of Excellence in Mining Technology (CEMT) has also been established at IIT (ISM), Dhanbad in collaboration with Australian institutions and research organizations for conducting research in the areas of Advanced Mining Technology and Mines Safety. Under this Research Centre, a Virtual Reality Mine Simulator (VRMS) is being established at IIT(ISM), Dhanbad by SIMTARS, Department of Natural Resources, Govt. of Queensland, Australia for simulating advanced mining technology and hazardous coal mine environment with support from CIL. VRMS will be used for imparting necessary training to executives and operational people for improving safety in Indian coal mines. After successful establishment of this facility at IIT(ISM), the same will be replicated at three different locations in CIL. In addition, the research activities jointly being undertaken by IIT (ISM), Dhanbad and CIL with Australian institutions, have progressed in the areas of segregate blasting, reducing the potential of mine fire and explosion in coal mines for improvement of production, productivity and safety. IIT (ISM) had approached Coal India Limited (CIL) with an R&D proposal on VRMS in May 201 7. After getting approval from R&D Board of CIL, the project has been commenced w.e.f. 01.09.2017.

O The cooperation between the two countries will attain new heights in future through such collaborative initiatives between Australian Institutions and IIT (ISM), Dhanbad in the frontier areas of Energy, Clean Coal Technologies, Advanced Mining Technology and Mines Safety.

O To expedite the co-operation, a Technology Mission headed by Secretary, Ministry of Coal visited Australia from 1 7th to 24th June, 2017. During the visit, the team had a discussion with Department of Industry, Innovation and Science, Govt. of Australia regarding Research & Development/Innovation in the field of coal mining, mine safety management, mine closure and reclamation and acquisition of coking coal assets in Australia by Coal India Limited (CIL). During the Visit to CSIRO, Brisbane, certain areas were identified for collaborative studies by CIL/CMPDI with CSIRO viz. 3D Seismic Survey, Hydro-Geological Modelling and Longwall Top Coal Caving (LTCC). It was also decided that increased emphasis will be laid on the ongoing R&D project on CBM/ CMM by CMPDI/CIL to explore the prospects of commercial utilization of methane through power generation. Capabilities of mine scheduling software XPAC and the Virtual Reality Training tools for mine workers were also demonstrated during the visit at RUNGEE PINCOCK MINARCO (RPM), Brisbane. Further, during visit to University of New South Wales, Sydney, it was decided to collaborate in the area of setting up of a Virtual Reality based Training Centre in India, Drone based subsidence monitoring in overlying areas of underground goaves, etc.

New Areas of Collaboration

a)    Underground Coal Gasification (UCG): In the India - Australia Energy Security Dialogues held during 8th - 11th February 2016 at Brisbane, for the development of Underground Coal Gasification (UCG), Australian companies like M/s Carbon Energy Limited was asked to look forward for the opportunities coming up in India in view of the recent UCG policy of Government of India. A meeting was organized by Austrade / Delhi on 31st May 2016 where M/s Carbon Energy Ltd. shared their outcome of Key Seam UCG Technology developed at the Blood wood Creek UCG Trial Project at QLD in Australia. It was agreed that in view of constitution of Inter-Ministerial Committee (IMC) for the development of UCG blocks, the proponent might approach the developer for extending technology to them after the award of blocks.

b)    CBM/CMM Development in CIL Command Area: In the India - Australia Energy Security Dialogues held during 8th - 11th February 2016 at Brisbane the Australian technology providers and experts from the Australian Universities came forward for participation in developing CBM/CMM areas under the leasehold of CIL in view of new policy of Government of India permitting CIL to explore and exploit CBM/ CMM on commercial lines. University of New South Wales (UNSW) has been requested to provide list of experts and technology providers. The status of ongoing R&D project on CBM/CMM was reviewed during visit of Secretary (Coal), Govt. of India to CSIRO, Australia in June, 201 7.

Indo-Poland Collaboration

New Areas of Collaboration

Secretary, Ministry of Coal (MoC), Govt. of India led a delegation to Poland during 6th-9th June, 2016 to understand the energy policy of Republic of Poland with particular reference to development of coal, coal mining technologies, reclamation of mined-out areas, capture and uses of Coal Mine Methane (CMM) and technologies for development of underground (UG) mines, etc.

A team of Polish Experts including manufacturers visited MoC, CIL, ECL, BCCL and CMPDI during 4th-7th July 2016 in sequel of the visit made by an Indian delegation led by the Secretary (Coal), MoC, Govt. of India to Poland. In view of the above, a Poland Technology Group (PTG) has been constituted and some of the areas were identified, such as, Slope stability of overburden dump (using advanced modelling technique), Dry Coal beneficiation, Extraction of remnant coal pillars with surface protection, Pre-drainage of coal mine methane (CMM) and commercial recovery of coal bed methane (CBM) and Control measures for mine fires of Jharia for obtaining the solutions from Polish side. A detailed discussion was held on the identified areas at CMPDI (HQ), Ranchi between Polish Experts and Officials of PTG & other officials of MoC, CIL/ CMPDI, wherein technical co-operation was sought on the identified areas from Polish Experts. A data dossier on the identified areas were prepared by CMPDI with necessary technical help from different subsidiaries of CIL and the matter is being taken up at CIL level.

In continuation of the collaborative studies, a team of 4 officers (2 from CMPDI and 1 each from CCL & BCCL) visited Poland from 13th -17th February, 2017 to enhance skill in the field of methane extraction and dry coal beneficiation.

The fifth session of the India-Poland Joint Commission on Economic Cooperation (JCEC) was held in New Delhi on 27.11.201 7. Input in this regard had been sent to CIL/MoC on 13.11.2017. Further information is awaited.

A Polish delegation involving representatives from M/s JSW, M/s PeBeKa and Central Mining Institute, Poland visited India during January, 2018 and a meeting was held on 16.01.2018 with the Indian representatives involving officials from CIL & SAIL. Capabilities of the above institutes/ organization of Poland were presented and views exchanged for further collaboration in different mining activities including participation in tender for CMM Drainage in Moonidih Mine of BCCL for which Global Bid is likely to be published. CIL also presented about the brief activities done during the last few fiscal and the short-listed areas identified under PTG for collaboration. The data dossier which was earlier sent to Polish group was again handed over to the Dy. Director General of the Central Mining Institute, Poland.

India-Indonesia Collaboration

The 4th meeting of the Joint Working Group on coal between the Ministry of Energy and Mineral Resources (MEMR), Indonesia and the Ministry of Coal, India was held on 20.04.2017 in Jakarta. Both side agreed that technology and science were crucial in mining industry in order to have sustainable, scientific, safe and environmental friendly mining. Both side agreed for future cooperation in "Geological exploration between CMPDI and Geological agency of Indonesia" related to coking coal characterization, capacity building for CBM laboratory analysis, geophysical exploration for coal and building geological models based on geological data. It was also agreed to exchange best practices in the areas of coal mining like mine planning and design, satellite monitoring of mined out areas for reclamation, IT enabled solutions for vehicle movement monitoring and environmental management of coal mines.

Capacity building between HRD agency of MEMR of Indonesia and Indian Institutes like IIT-ISM, Dhanbad, IIT, Kharagpur and IIT, BHU was also agreed. It was also decided that lab to lab cooperation between Central Institute of Mining and Fuel Research (CIMFR), Dhanbad of India and R&D agency of MEMR of Indonesia to conduct research on coal gasification, mine water treatment technology and clinker formation as a result of blending.

A 6-member Indonesian delegation visited CMPDI, Ranchi, CIMFR, Dhanbad and MoC New Delhi during 3rd- 5th May, 201 7. During their visit to CMPDI on 03.05.2017, capabilities of CMPDI were presented to the Indonesian team on the identified areas as discussed in the 4th meeting of the Joint Working Group on coal between the two countries. Indonesian delegates also visited CIMFR laboratories in Dhanbad on

04.05.2017 and different research programme and other activities being carried out by CIMFR were briefed to the delegation. Another team visited Piparwar Opencast Mine of CCL on 04.05.201 7.

Following points were agreed by the Indonesian team during the meeting held on 05.05.17 at MoC:

-    Geological agency of Government of Indonesia and CMPDI will explore the possibility of cooperation in preliminary exploration/ geological mapping of coking coal deposits in Indonesia.

-    After establishing potential of coking coal deposits, the Government owned companies of the two countries namely Coal India Limited & PT. BUKIT ASAM / Local Government Company will explore the possibility of forming an SPV for exploration, development and operation of coking coal assets in Indonesia. The Government of Indonesia will facilitate exploration license/ mining license to the SPV(s) as per the extant laws of the country.

-    Govt. of India and Govt. of Indonesia will facilitate B2B cooperation between private coal companies of Indonesia and CMPDI in exploration and related laboratory services.

As a follow up action and after an invitation obtained in July 2017 from Indonesian side, CMPDI team visited Indonesia during 28.08.1 7 to

01.09.1 7. During the visit, Center for Mineral, Coal and Geothermal Resources (CMCGR), Indonesia showed interest to have capacity building in coking coal characterization and preliminary exploration/geological mapping in West Kalimantan area. CMPDI proposed the cooperation on forming a Special Purpose Vehicle (SPV) for exploration development and operation of coking coal assets in Indonesia with Indonesian Coal State owned company as well as cooperation in exploration and laboratory services with Indonesian Private Company, as per the agreed points of the meeting held on 05.07.2017 in New Delhi. Upon the proposal, the CMCGR side expressed their need to have further consultation and coordination with concerned authorities/parties.

Both parties agreed on the initial draft Scope of Project and will take further internal consultation with the relevant parties in order to finalize the draft. One coal block in West Kalimantan has been identified for prospecting which will be decided after field visit to the proposed project area in April 2018. CMCGR, Indonesia have requested for funding of all the activities in scope of work by Govt. of India. A Ministerial level meeting of both the countries along with their technical and business representatives needs to be carried out for finalizing the agreement of the above work to arrive at the cost involved in the entire project. Govt. of India and Govt. of Indonesia will facilitate B2B cooperation between private coal companies of Indonesia and CMPDI in exploration and related laboratory services. MoC has been requested to take view on it.

A team of officials of M/s Valmet of Finland along with Mr Mikko Postonen, Counselor, Embassy of Finland met CIL Chairman, Director (Tech) and other officials of CIL at Kolkata to promote their Technology for utilization of Coal Washery Rejects (CWR) for generation of thermal power. The delegation informed CIL that Valmet had a licence for designing Power Plant Boiler to burn washery rejects coal having ash% up to 77% with GCV of 1100 Kcal/Kg. It was agreed that solution from Boiler to Generator (B2G) based on CWR as feed was required.

Based on a request forwarded through MoC dated 5th Sept.'17, a Video conferencing was organized between CIL, CMPDI and the delegation from Valmet and Finnish Embassy for a discussion on the issue of prospects of CWR in CIL's subsidiaries. During the meeting, it was agreed to undertake a scoping study on the prospects of establishment of Coal Washery Reject based TPP utilizing Valmet's technology. It was also agreed to involve NTPC/Power Producing companies and BHEL during the scoping study.

Representatives of Valmet along with Mr Postonen, Counselor Embassy of Finland had a meeting with CIL Chairman, Director (Tech) and other CIL officials on 5.10.2017 at New Delhi to continue discussion on how to carry forward the scoping study. It was agreed to take up the desktop scoping study at a site located centrally to a group of wateriest in operation at one of the subsidiaries of CIL. However, it was agreed that prior to this study, since this technology is to be utilized in a Thermal Power Plant, it would be prudent to include a Power Producing company, namely, NTPC and a manufacturer of Boiler-Generator, namely, BHEL in the study.

The Finnish side informed that the Embassy of Finland shall co-ordinate with NTPC and BHEL to bring them onto the Board to have a synergy on the prospective study and CIL shall provide the required inputs for study. It was agreed that the scoping study shall be a self-sponsored without any financial impact on either side on account of the group study. The above decision has been communicated to Valmet Chennai Pvt. Ltd at Chennai. A meeting was held on 20.11.17 at Scope complex, New Delhi among the officials from CIL, Velmet, Embassy of Finland, BHEL, where various modalities of the project were discussed. Another meeting was held on 15.03.18 among Finnish officials, Velmet and CIL officials at CMPDI, Ranchi on this matter. The minutes of this meeting are awaited.

India-Bangladesh Collaboration

A meeting was held on 05.10.2016 between State Minister, Ministry of Power Energy and Mineral resources, Govt. of Bangladesh and Minister of State with independent charge for Power, New and renewable energy and Mines, Govt. of India. In the meeting, Bangladesh requested assistance of Government of India to develop the coal reserves in Bangladesh. In response to this, India agreed to send a technical team from CMPDI to study the techno-economic feasibility of the mining of coal on the basis of available geological/geo-mining data.

Accordingly, a technical team of CMPDI visited Bangladesh during 20th -24th Aug.'1 7 to study techno-economic feasibility of coal mining on the basis of Geological/Geo-mining data. During the visit, CMPDI team interacted with Senior Officials from Indian High Commission of Bangladesh, M/s Petrobangla, M/s Barapukuria Coal Mining Company Ltd. (a company of Petrobangla) and Geological Survey of Bangladesh. The Bangladesh side had shown interest in development of Barapukuria, Khalashpir and Jamalgunj areas. The existing geological data generated so far in these areas will be required for understanding the regional geology and generation of further data. The promising areas can be explored further for feasibility studies. An initial request has been made to Barapukuria Coal Mine Company in this regard.

Indo-Russian Collaboration

The 21st Meeting of India-Russia Joint Working Group on Energy and Energy Efficiency was held on 7th September, 2016 at New Delhi. Indian side expressed its interest in technical cooperation with Russian companies in the field of Underground Coal Gasification (UCG) and resource assessment of Coalbed Methane (CBM) in destressed conditions. Russian side agreed to pass on the information to concerned Russian companies.

The 6th meeting of India-Russia Sub-group on Mining of the working group on Modernization and industrial cooperation held on 15th September, 2017 at Moscow, Russia and a protocol has been signed between two countries.

Both side showed mutual interest in developing the long term and mutually beneficial cooperation in the field of metallurgical, mining and processing mechanical engineering, ferrous and non-ferrous metallurgy, mining, coal industry and aluminum industry. Both side also showed mutual interest in promoting investment in these sectors by encouraging both public sector and private sector companies.

Indo-Japan Collaboration

New Areas of Collaboration

a)    Dry Coal Beneficiation: M/s Nagata Engg. Co. Ltd. has been requested to provide the detail technology including specification and performance data, commercial availability of the separator and cost thereof with other supports (if any). The response is awaited.

b)    Slope Stability Monitoring: Dr. Hideki Shimanda of Kyushu University, Japan has been requested to share their technical expertise and valued opinion for Indian geo-mining conditions. Reply is awaited.

c)    Subsidence Measurement & monitoring using DINSAR Technology: J-Coal delegation led by Mr Masafumi Uehara, Asst. Sect. General, Resource Development Department, J-Coal, Japan visited CMPDI in August 2016 and presented the possible use of DinSAR technology for subsidence monitoring in Jharia Coalfield. The delegation also visited the subsidence sites at BCCL. On query whether a real time monitoring and subsidence prediction was possible through this technology, Mr. Uehara informed that real time monitoring, at present, was not possible through this study as the minimum interval for this study can be one and half months, which is the re-visit time of the satellite to acquire the data and moreover they do not have expertise in subsidence prediction presently. Under such circumstances, the project is kept in abeyance. Inputs on the above possible areas of collaboration with Japan has been communicated to CIL/ MoC on 29.11.201 7. Further information is yet to be communicated.

As per the Article No. 7 of the MoU signed between Ministry of Mines, Govt. of Islamic Republic of Afghanistan and Ministry of Coal, Govt. of India, a joint Working Group from Indian side has been constituted by Ministry of Coal on 21.02.2013. Further information is yet to be communicated.

Indo-Belarus Collaboration

Two proposals regarding trial run of 350 Tonne dump trucks of Belaz make and technology for North Eastern Coalfields by M/s NIVA of Belarus were received from Ministry of Coal through CIL on 14.03.201 7. Necessary comments of CMPDI on the above proposals have been sent on 20.03.2017 for onward communication.

The 8th protocol of India-Belarus Inter Governmental Commission (IGC) on Trade, Economic, Scientific, Technological and Cultural Cooperation has been signed on 04.07.2017 in New Delhi. Both side reviewed the progress of bilateral cooperation and explored further potential of cooperation between the two countries in order to strengthen and widen bilateral relations. Updated status on the points pertaining to CMPDI have been sent to MoC on 20.07.2017. The further status is yet to be communicated.

Further, Mr. Vladimir I. Semashko, Deputy Prime Minister of the Republic of Belarus along with business delegation attended the 'India-Belarus business forum' on 11.09.201 7 in New Delhi and presented the capabilities of Belarus companies. A high-powered delegation from Belarus was scheduled on 12.09.201 7 in India to discuss issues on bi-lateral cooperation, the details of which is yet to be communicated to CMPDI.

13. COAL VIDESH DIVISION

I.    INITIATIVES FOR ACQUISITION OF COAL ASSETS ABROAD

(A)    Activities of Coal India Africana Limitada (CIAL), Mozambique

Post surrendering of prospecting licenses of CIAL to Government of Mozambique, CIL Board directed CIAL to implement economization of its operations at Mozambique, by shifting its registered office from Tete to Maputo. In pursuance of the directive of CIL Board, the economization measure has been implemented by shifting the registered office from Tete to Maputo.

(B)    Acquisition of coking coal assets abroad

Pursuant to the directives of the Board, CIL has focused to the coking coal producing countries viz. Australia, Canada, USA etc. for acquisition of coking coal assets abroad. As a part of the preparedness towards acquisition initiatives, empanelment of Merchant Banker (MB)/Investment Banker (IB) has been done to render assistance in acquisition process.

II.    REVIVAL OF FERTILIZER PROJECTS

(A)    Setting up of natural gas based ammonia-urea complex at Gorakhpur, Sindri and Barauni

Hindustan Urvarak & Rasayan Limited (HURL) was incorporated as a Joint Venture Company comprising of CIL,NTPC, IOCL, FCIL and HFCL as partners to set up natural-gas based ammonia-urea complex at the premises of closed fertilizer plants of FCIL at Gorakhpur (U.P.) & Sindri (Jharkhand) and that of HFCL at Barauni (Bihar). In 2016-17, pre-feasibility studies were conducted to set up 1.27 MTPA capacity urea plant at all three locations. After pre-qualification of contractors for setting up of the plants, NIT was issued through Lump-Sum Turn Key (LSTK) mode.

Based on the evaluation of offers, the technical consultant M/s PDIL has prepared Detailed Feasibility Reports (DFRs) and the financial consultant, M/s SBI Caps has prepared the Financial Appraisal Reports (FARs) for all three fertilizer plants. In case of Gorakhpur fertilizer plant, DFR has been approved by the Boards of HURL as well as the promoting companies. After achieving successful financial closure, the investment decision has also been approved by CIL Board. The LoA has been issued to the consortium of M/s Toyo Engineering, Japan and M/s Toyo Engineering, India. In case of Sindri and Barauni fertilizer plants also, the DFRs have been approved by CIL Board. LoA has been issued to consortium of M/s Technip France and L& T Hydrocarbons Engineering Limited, India.

All the pre-project activities have been completed at all three sites. MoEF has granted Environmental Clearance for setting up of Ammonia-Urea plants at all three locations. Term-sheet has also been signed with M/s GAIL for supply of Natural Gas for the three proposed plants through their upcoming Jagdishpur-Haldia-Bokaro-Dharma Natural Gas pipeline (JHBDPL). All three plants are scheduled to come in operation by 2020-21.

(B)    Setting up of coal based ammonia-urea complex at Talcher

Talcher Fertilizers Limited (TFL) was incorporated as a Joint Venture company comprising RCF, CIL, GAIL and FCIL as the partners, for setting up of a coal based ammonia-urea complex at the premises of the defunct fertilizer plant of FCIL at Talcher. Low CV, high ash coal from nearby Talcher coalfields blended with pet-coke up to 25% shall be gasified to produce syngas, which shall be converted into Ammonia and subsequently Urea.

TFL Board has approved coal gasification technology of M/s Shell for the proposed plant. Based on techno-economic feasibility study to set up 1.27 MTPA capacity urea plant on partial LSTK mode, separate LSTK tenders have been floated for Coal Gasification Plant and Ammonia-Urea plant. Concurrently, LSTK NIT for Captive Power Plant and tender documents for other Off-sites and Utilities are under preparation by the Consultant.

MoEF has granted Environmental Clearance for setting up of integrated coal based Ammonia-Urea plants at Talcher. Ministry of Coal has accorded its in-principle approval for allotment of the northern part of North of Arkhapal coal block to TFL. An MoU has also been signed between TFL and IOCL for supply of pet-coke to the proposed plant from Paradeep Refinery.

III.    DIVERSIFICATION INTO CHEMICALS SECTOR

Setting up of Coal to Methanol plant at Dankuni Coal Complex (DCC)

Govt. of India has stressed the need to reduce the crude import bill and take up the measures to cut carbon emissions. NITI Aayog has prepared an action plan to substitute 10% of crude imports by 2030, by Methanol (CH3OH) alone. India is shortly going to implement up to 15% Methanol blending program (M15) with Petrol. Ministry of Road Transport & Highways and Shipping & Waterways has already prepared the draft notification on M15 and M100 as transport fuel and is expecting a clearance from Law Ministry to be notified officially. After announcement of this methanol blending policy, the domestic Methanol business which stood at around 2 MT in 2016-17 is projected to reach to 30 MT in 2030.

To seize this opportunity, CIL is exploring the possibilities for diversification into Chemicals sector by setting up a new coal gasification based methanol complex in premises of Dankuni Coal Complex (DCC). This would also bring a paradigm shift in positioning of its product, particularly High CV low ash coal, from an Energy product to a chemical feedstock. Coal sourced from Ranigunj coalfields shall be gasified to produce syngas which shall be subsequently converted into methanol.

As part of this exercise, potential coal gasification technologies have been shortlisted through a global EOI. The consultant, M/s PDIL was entrusted to prepare PFR. M/s PDIL has recommended to set up a coal to methanol complex of 2050 MTPD (0.676 MTPA) capacity in the available land at DCC. Currently, the project is under Pre-Feasibility Study stage.

14. MASTER PLAN FOR DEALING WITH FIRE,SUBSIDENCE AND REHABILIATION

The Master Plan for dealing with fire, subsidence and rehabilitation in the lease hold of Bharat Coking Coal Limited (BCCL) and Eastern Coalfields Limited (ECL) was approved on 12th August 2009 by Govt. of India with an estimated investment of Rs, 7, 112.11 crores for Jharia Coalfields and Rs, 2661.73 for Raniganj Coalfields. Implementation period has been delineated as 10 + 2 years.

High Powered Central Committee meetings were conducted under the chairmanship of the Secretary (Coal), MoC to review the activities of implementation of Master Plan. Fifteen meetings were conducted so far; last meeting was held on 10/11/2017.

Jharia Rehabilitation and Development Authority (JRDA) is the implementing agency for rehabilitation of non-BCCL people under Master Plan whereas Asansol Durgapur Development Authority (ADDA) a state Govt. organization has been identified as implementing agency for Rehabilitation of Non-ECL houses.

A. Summarized Status of Implementations of Master Plan in the lease hold of Eastern Coalfields Ltd.

Seven Surface Fires were identified in the approved Master Plan have been doused by blanketing with thick layers of earth to save the life and properties of the inhabitants.

Demographic Survey work has been completed for all 126 locations out of 141 identified locations as 10 locations having no habitation and 3 locations have only ECL population. In 2 locations survey work could not be completed due to public agitation. The final list has already been published which contains 44598 households. Photo Identity Card (PIC) has been distributed to 43087 persons out of total 44598 persons. Most of the ECL employees residing in 3 endangered locations have been shifted and remaining persons were allotted quarters and are in the process of shifting. In the 15th HPCC meeting CEO, ADDA informed that final data of Demographic survey report is yet to be published.

According to the approved Master plan, about 896.29 ha. (2214 Acres) land would be required for resettlement of non-ECL families.

In the meeting held on 24.03.2017 at Nabanna under the Chairmanship of Chief Secretary, Govt. of WB where in it was decided that ADDA, ECL & CMPDIL will jointly find out the possibilities of large chunk of land to be used for rehabilitation purpose. It was also discussed that 15% of population under rehabilitation scheme are to be accommodated in Durgapur for which Bengal Aerotropolis Limited (BAPL) land would be made available. For the rest of 85% who are to be rehabilitated in Jamuria, Ranigunj, Asansol and Baraboni blocks land in big chunks has to be identified.

Construction of 160 houses has already been started from 10.03.201 7. Work orders for construction of 3024 flats at Mouza Bijoynagar & 1904 flats at Mouza Namokeshia have been awarded on 19.03.2018. Finalization of Tender for Construction of 5664 flats at BAPL land and 2224 flats at Daskeary mouza are under in process.

i) Diversion of National Highway (NH-2):

As per decision of 14th HPCC meeting on 20.3.201 7 at DGMS, Office Sitarampur under the Chairmanship of Dy. DG(EZ) with the representatives of ECL, CMPDIL, NHAI and ADDA where it was noted to get idea of blind backfilling and certification of action required for proper stability from CIMFR, Dhanbad.

In the 15th HPCC meeting on 10.11.2017 it was directed that in regard to 300m. stretch of NH-2 under unstable area, a committee was constituted under DG, DGMS with DDG, Central zone DDG Eastern zone to examine all available reports and reassess the danger associated and need for shifting/strengthening the road. Accordingly, a meeting was conveyed at DGMS office, Sitarampur on 21.03.2018 under the Chairmanship of DG, DGMS. DG rejected the proposed alignment of diversion due to suspected workings in the vicinity of the diversion road. It was also expressed the doubt about restoration of full proof as well as long term stabilization through back filling technique due to nonavailability of any authentic mine plan of the worked out seam on the basis of which actual void area can be ascertained. Finally, after site inspection DG opined that geotechnical study of the affected stretch should be conducted afresh by other technical/research Institute of national repute to find out the best possible solution for stabilization of the unstable part of the road for long term duration.

(ii) Diversion of District Board (DB) Roads.

The diversion of DB Road at Mohanpur Colliery of Salanpur area is not required, as the proposed route is coming under mining operations. The existing road between Amdiha and Samdih via Lalgunj will serve the purpose of connection.

In the proposed diversion route of Gorangdih Begunia colliery, 3.512 acres of land is required out of which 3.040 acres is Raiyati land and

0.472 acres being WB Govt. vested land. For diversion of this DB road at Jamgram mouza under Barabani PS, public notice has been issued. The District Level Purchase Committee has taken up the issue regarding purchase of Raiyati land.

For diversion of DB road at Ratibati colliery, 4.847 acres land is required (1.207 acres of ECL land ( + ) 0.370 acres of Raiyati ( + ) 3.270 acres of DGCA land).

MoC has accorded its approval for transfer of ECL land to State Govt. for diversion work of DB Road and same was communicated to ADDA on 16.11. 2017. As per DGCA's view, ADDA to examine alternative alignment for 3.149 acres DGCA land. Joint physical verification of the alternative diversion route has been done and it was found that the land comprised in the proposed alternative alignment has been encroached by the local people and no alternative alignment is feasible.

Jt. GM(LM)-ER in his letter on dated 29.01.2018 suggested to re-submit the alignment of proposed diversion of DB road covering minimum area as well as shortest length of proposed diversion of road of AAI land at the said site.

Accordingly, a joint inspection comprising officials of ECL and ADDA was made on 28.02.2018 and an alternate alignment covering an area of 0.68 acres of AAI land at the said site was found. Proposal to transfer 0.68 acres land owned by DGCA in favour of Urban Development Dept, Govt. of WB has been sent to Regional Executive director, AAI on 15.03.2018 to consider and expedite the issuance of NOC for construction of diversion route of the concern DB road.

iii)    Diversion of Railway line:

Andal-Sitarampur Railway line:

Preliminary discussion with Eastern Railway officers was held on 20.12.201 7 where it was suggested by DRM, Asansol to send details of the scope of study in such stability assessment along with the plan showing the proposed route study to examine the proposal from their end.

In regard to diversion of Andal-Sitarampur Railway line and on consideration of revised FSR by Railways, CMD, ECL was asked to convene a meeting with all concerned to assess the danger associated with it and action to be taken in this matter. In a meeting held on 02.02.2018 at ECL HQ under the Chairmanship of CMD, ECL where all Functional Directors of ECL and Eastern Railway officials including DRM, Asansol were also present and it has been decided to conduct geotechnical investigation/survey of the unstable stretches beneath the Andal -Sitarampur rail track to find out the total void area below the railway track. Stability analysis of the workings and prediction of any surface subsidence based on geotechnical investigation and analytical method would also be done in this scientific study. Accordingly, three premiere technical/scientific research Institutions i.e. IIT, Kharagpur, ISM, Dhanbad & CIMFR, Dhanbad were contacted to submit their offer for carrying out the said scientific study.

Chief Scientist of CIMFR had already visited at ECL HQ on 06.03.2018 to discuss on the subject matter. On 29.03.2018, ECL again requested the above three premiere Institutes to submit their offer within a week time for taking further course of action on the above referred matter.

Diversion of Andal-Sainthia Railway Line:

Regular Monitoring is being done by ECL & Railway Authorities to check any subsidence and the speed of the trains in these locations have also been restricted.

iv)    Diversion of Indian Oil Corporation Limited (IOCL) pipeline:

IOCL informed that regular monitoring is being done by them to detect any deflection of pipe line due to subsidence.

B. Summarized Status of Implementation of Master Plan in the lease hold of Bharat Coking Coal Ltd.

Reduction in Fire area: The coal mine fire survey/ study was instituted by BCCL through National Remote Sensing Centre (NRSC), ISRO, Department of Space, Hyderabad for delineation of surface coal fires in Jharia Coalfield. NRSC has submitted their report in which they have concluded that the present fire area in the coalfield is only 2.18 sq.km. which includes both over burden dump fire and active fire. In Master Plan, total surface area affected by fire described as 8.9 sq.km. NRSC has reduced these findings from the State of Art, Satellite based technology. NRSC has been requested to repeat the satellite TIR survey. NRSC has completed the survey in December 201 7. Final Report of NRSC is awaited. BCCL would improvise the fire action plan for speedier liquidation of fire area.

As per Master Plan, total 54159 families in 595 nos. sites are to be surveyed. CIMFR, ISM, whiz Mantra and JRDA have completed survey of 595 sites for 91879 families of encroachers, survey of private houses are to be started.

3360 houses have been constructed in Belgoria Rehabilitation Township "JhariaVihar" in which 2048 non - BCCL families(encroachers) are shifted from affected areas. Construction of 6992 units are in progress out of which 992 units are in completion stage.

Regarding the rehabilitation of BCCL people, residing in the fire & subsidence affected area, 6668 houses constructed out of 15852 houses and 3311 BCCL families shifted till January 2018. The remaining 3357 house Construction is expected to be completed by December 2018 and shifting by December 2019.

As per Master Plan, 2730 Acres of land would be required for resettlement of non-BCCL families for which JRDA is perusing for acquisition of land and proposals are now at different stages. NOC of 86.44 acres of vacant land in Bhuli Township and 849.68 acres of non-coal bearing land in and around Belgoria Township belonging to BCCL have been given by MoC which has been communicated to JRDA along with all the required Mouza plans for developing new Townships by JRDA.

Road diversion from fire affected areas:

Repairing/ widening of Mahuda-Topchanchi road in lieu of endangered portion of NH-32 between Godhur to Putki as a short-term measure is completed. BCCL has requested NH authority for handing over the site for dealing the fire from said stretch of road in the spirit of Jharia Action Plan.

Rail Diversion from fire affected places

As per recommendation of HPCC, a Committee was formed under the Chairmanship of DGMS and its first meeting was held on 24.03.201 7. As per record note of Committee "the committee feels that movement of passenger or goods train on the Dhanbad -Chandrapura Railway line of E.C Railway is to be stopped immediately in the interest of safety to human.

In the record note chaired by Principal Secretary to PM on dated 22.5.2017 "Director General of Mines Safety (DGMS) should visit the site of railway track and give certificate regarding safe/unsafe condition of track by 5th June 2017" regarding stopping Dhanbad- Chandrapura line.

As per letter by Excutive Director/Civil Engg (P) Ref; 2008/CE-II/WP/31 dated 10.06.2017 to General Manager E C Railway,Hajipur "Having considered DGMS report, Board has decided to stop operation of Passenger and good Traffic on Dhanbad Chandrapura line with affect from

15.06.2017.

BCCL has made several communications to Railway regarding handing over the Railway acquired land of stretch of Dhanbad Chandrapura line for fire mitigation. Recently a letter has been written by the additional member (WORKS), Rail Ministry, Railway Board to the Government of Jharkhand for bearing the cost of alternative alignment of closed Dhanbad Chandrapura line.

Coal India Ltd has infused Rs,432.01 crores to ECL and Rs,1112.31crs to BCCL till March 2018 for implementation of Master Plan.

15. ENVIRONMENTAL MANAGEMENT

15.1    Environmental Impact Assessment (EIA)/Environmental Management Plan (EMP)

EIA/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. During the year 2017-18, CMPDI has prepared a total of 20 Form-I and formulated 23 Draft EIA/EMPs. 18 environmental clearances and 6 modification in EC were also obtained from MoEF for different Projects/ Group of Mines, Washeries and Sand mining projects of CIL during the year 2017-18.

15.2    Management System Standards

CIL HQ has got certification against ISO 9001, ISO 14001 and ISO 50001 (Quality Management System, Environment Management System and Energy Management System) from Bureau of Indian Standards. As on 31st March 2018, three of our subsidiaries, ECL, NCL and MCL are certified for their companywide Integrated Management System (ISO 9001, ISO14001 and OHSAS 18001) and CCL is likely to be certified shortly. BCCL, SECL and WCL are in the process for implementation of companywide Integrated Management System (ISO 9001, ISO 14001 and OHSAS 18001). CMPDI HQ and its seven RIs are certified for ISO 9001:2015. CMPDI is in the process of implementing ISO 14001 & ISO 50001."

15.3    Pollution Control Measures and their Efficacy

Coal India has been giving utmost importance to protect environment by practicing and following sustainable mining practices so as to ensure that the mining operations has least impact on environment. Various pollution control measures and initiatives are taken up concurrently with mining operations for maintaining acceptable/permissible limits of major physical and chemical attributes of environment namely air, water, hydrogeology, ground vibrations, noise, land & nearby community.

(A) Air Pollution and its Control Measures:

To control and reduce dust generation during drilling, blasting, loading and Coal transportation, Coal India Ltd. has taken up various initiatives based on the Environmental Management Plans (EMP) which were already prepared before commencement /enhancement of production of coal mines. This EMP is prepared keeping in mind the impact on existing environment and forest due to coal mining projects through Environment Impact Assessment (EIA) study of each project.

Crushers, coal transfer points and coal stock areas are being installed. Mist spray systems have been introduced along conveyor routes, transfer points and on bunkers. Mobile water sprinkling has been provided in all the haul roads of OC mines. In addition to these, the projects are enhancing the water sprinkling through engagement of contractual water tankers. Automatic sprinklers have also been installed in CHPs. Some of the important initiatives are also mentioned below:

a)    Mobile sprinklers have been installed along haul roads to control dust generated by truck and dumpers movements.

b)    Optimum level of loading of coal in trucks and railway wagons to avoid spillage on roads and rail.

c)    To avoid spillage of coal during transport, trucks are properly covered by tarpaulin covers.

d)    Blacktopping, repairing and strengthening of haul roads are regularly and scientifically carried out.

e)    Plantation in surroundings of active mining areas and along the hauls roads are carried out to create green buffers/green belts in and around the mines.

f)    In order to reduce the dust pollution due to road transportation, eco-friendly mode of transport is being introduced. Transportation to thermal power stations, who consume more than 80% of thermal coal are carried out by rail / series of belt conveyors. Rail heads are constructed and made available nearer to mine so as to reduce road transportation. CIL have constructed / are constructing integrated CHP for rapid loading of wagons and trucks.

g)    Tube conveyors mode of transportation is also being introduced in some mines for transportation of coal to thermal power plants. The wall/sides of CHPs are also covered by side cladding with GI Sheet to control pollution at source.

h)    To contain dust emission at source itself, dust extractors / wet drilling systems are being undertaken.

i)    Controlled blasting and habitation away from the mines have been introduced as far as possible.

j) Modern technologies like Surface Miners and Continuous Miner at different subsidiaries of CIL which generates lesser air borne pollution as compared to conventional mining have been introduced to the system. During 2017-18, CIL has produced around 48% of total coal production through surface miners and continuous miners.

k) The quality of Ambient air in and around the mine site is being monitored fortnightly. The required and stipulated numbers of ambient air quality monitoring stations are maintained, as per environmental rules and regulations of Environment (Protection) Act, 2006, and its reports are regularly submitted to SPCBs and MoEF&CC.

l) The concept of 'Continuous Ambient Air Quality Monitoring Stations' (CAAQMS) are being introduced and are installed / being installed in large mines of CIL. Continuous Ambient Air Quality Monitoring Stations have been installed at 4 locations in SECL and 01 location each in WCL and MCL.

(B)    Mine Water Management:

Water which pumped out from the underground and open cast mines are being contaminated with suspended particles. Some small quantity of water being contaminated during washing and cleaning of HEMM. CIL also takes initiative by treating this water. The treated water is being supplied to the local villages after mine consumption, Quality of the final effluent is monitored in terms of the relevant Indian standards.

-    Domestic Effluent Treatment Plant (DETP): The domestic effluent from major residential colonies is treated in DETP either by activated sludge method or by extended aerated lagoons.

-    Mi ne Discharge Treatment Plants (MDTP) are installed in mines for treatment of mine water. Strata seepage water in mines first gets accumulated in the mine sump which provides for initial settlement of suspended particles. The supernatant water from the sump is then pumped out on surface and treated in surface sedimentation tank, which provides for second stage settlement. The treated mine water is then used partly within the mine premises for dust suppression, fire fighting, plantation, washing and further treated as per drinking water standard for supply to company township and nearby villages through pressure filter / RO. etc. After ensuring maximum re-use within and around mine premises the excess treated mine pumped out water is released onto local nalla / streams which is used by the surrounding local population specially for agricultural use.

-    In order to assess the impact of mining activities on ground water, quarterly monitoring of ground water levels is being carried out in and around the coal mines covering the buffer zone (i.e.10 Kms radius). Further, recharging of ground water is also taken up within mine premises as well as in nearby villages through rainwater harvesting, digging of ponds/development of lagoons, de-silting of existing ponds/ tanks etc.

-    Regular monitoring of mine effluent, workshop effluent, and domestic effluent is carried out every fortnight as per Environment (Protection) Rule - 2006. Reports of the same are regularly submitted to SPCBs and MOEF.

(C)    Noise Pollution Control Measure:

For control of noise pollution, following measures are adopted:

i)    Proper maintenance of equipment to minimize vibration

ii)    Green belt provided around the mine as well as residential area.

iii)    Controlled Blasting & blasting in only day time.

iv)    Use of Surface Miner, Continuous Miner & High Wall mining which extract coal without blasting.

v)    Ear Muff or Ear Plugs provided to Workers at highly noisy areas

(D)    Land Reclamation:

Reclamation of the mined out areas and the external OB dumps is a major environmental mitigatory activity taken up by Coal India. In all new mines reclamation of mined out areas are being done as per the Environmental Management Plan and Mine closer plan which are approved by MoEF&CC. Back filling of the OB material in the mine voids is part of the mining operation cycle. Top soil preservation, storing and use in the plantation areas of the reclaimed areas are being done in the opencast mines wherever necessary. Concurrent reclamation and rehabilitation of mined out areas (subject to technical feasibility as per geo-mining conditions) are taken for gainful land use. Opencast mines are filled up with overburden extracted during the process of extraction of coal and after technical reclamation is completed plantation is carried out which is termed as biological reclamation.

-    Eco-restoration : For effective Bio- reclamation of disturbed land, scientific studies are carried out to select suitable species of plants for each coalfield and sustainable sequence of reclamation from grass to shrubs, to trees. Forest Research Institute (FRI) have been engaged by CIL for sharing their expertise in the field of eco-restoration in the reclaimed areas. ECO restoration sites have been developed in BCCL, with technical guidance of FRI.

-    Eco-park in Reclaimed land : Eco Parks have been developed in many of the mined out areas of CIL like Gunjan Park of ECL, Ananya Vatika of SECL, Nigahi of NCL, Saoner of WCL, Kayakalp Vatika, Rajarappa Eco Park in CCL etc.

-    Tree plantation : Green belt is developed through extensive tree plantation programme every year by the subsidiaries of Coal India Ltd. Avenue plantation, plantation on the OB dumps, plantation around mines, residential colonies, and available government land is undertaken in existing as well as new projects. Since inception, subsidiary companies of CIL have planted 96 million plants covering an area over 38378 Ha. till March 2018.

-    Monitoring of Reclamation : CIL introduced state-of-the-art Satellite Surveillance to monitor land reclamation and restoration for all opencast projects. The land reclamation and rehabilitation operations are being monitored by Satellite Surveillance. 50 major OCPs excavating more than 5 Mm3 (Coal + OB) per annum are being monitored every year while remaining OCPs excavating less than 5 Mm3 (Coal + OB) per annum are being monitored every 3rd year. This gives a clear picture of reclamation, which otherwise is difficult to accurately estimate. The study during 2017-18 shows that all the major OCPs (excavating - 5 Mm3 (Coal + OB) per annum) have reclaimed area of 61.96% and active mining area is only 38.04% of the total excavated area. In addition, CIL is conducting vegetation cover mapping through satellite surveillance in every 3 years.

-    Mine Closure Plan (MCP) : MCP is an integral part of the project report prepared by CMPDIL for Coalmines. This progressive mine closure plan also forms a part of the EIA/EMP prepared and submitted to MOEF for Environmental Clearance. The progressive reclamation of mined out areas by inbuilt in the project cost and is implemented accordingly. After exhaustion of reserves, statutory obligations in respect of closure are also followed. CIL is practicing mine closure very effectively. CIL is committed for restoration of abandoned / mined out areas in a socially acceptable & environment friendly manner. As on March 2018, out of 453 identified mines, MCPs have already been prepared for all the mines, 445 MCPs have been approved by concern Subsidiary Board and total amount of ' 6075.44 Crores has been deposited in 425 numbers of Escrow accounts.

- Strive for continual improvement in environmental performance by setting targets, measuring progress and taking corrective action.

CIL has engaged Indian Council of Forestry Research & Education (ICFRE), Dehradun for Environmental Audit of 20 OC Mines of CIL which is intended for third party inspection, verification of the existing levels of pollution vis-a-vis the laid down standards and to delineate the compliance status of major projects in addition to the inspection carried out by the statutory authorities like CPCB/SPCB etc. ICFRE has submitted final draft reports of 19 mines. Furthermore, CIL has engaged ICFRE for developing approach and methodology for index rating of environmental conditions for individual mine & preparation of Environmental Performance Index in respect of the EC conditions and third party mine auditing of 35 mines of CIL pertaining to Environmental Compliance.

(E) Solar Energy/ Energy efficient Initiative by Coal India Ltd:

CIL has signed MoU with Energy Efficiency Services Limited (EESL) to promote energy efficiency provisions in CIL and its subsidiary companies. CIL has taken steps for using LED lights substituting CFL lights. All the electrical fittings of CIL's HQ at Rajarhat, Kolkata have been replaced by energy efficient LED fittings.

To promote, Green Initiatives taken by GoI, CIL has submitted Green Energy Commitment letter to MNRE for developing 1000 MW Solar Power Projects. For implementation of these projects, CIL has signed MoU with Solar Energy Corporation of India (SECI).

In the 1st phase, tender was floated for setting up of 2x100 MW Solar PV Project in the state of Madhya Pradesh. But, due to downward trend in prices of solar projects and availability of land in Madhya Pradesh Solar park, the tenders were cancelled and SECI is in the process of retendering the same in the state solar park of Madhya Pradesh.

CIL's initiatives had resulted in installation of more than 3 MW capacity in CIL HQ and its Subsidiary Companies.

15.4 Assessment of Impact of Coal Mining in different coalfields

CMPDI has introduced satellite surveillance for land reclamation monitoring of all the opencast mines from the year 2008-09. Land reclamation monitoring of 50 opencast projects having more than 5 million cu.m. capacity (coal + OB) and 42 OC projects producing less than 5 million cu.m. (coal + OB) have been completed based on high resolution satellite data during the year 2017-18. Monitoring of land reclamation status in larger capacity mines (-5 million cubic metre) are carried out regularly on annual basis and smaller mines (<5 million cubic metre) at three years interval.

During 2017-18, seven coalfields, viz. Rajmahal, Raniganj, Ib-Valley, Mand Raigarh, Sohagpur, Umrer and Pench-Kanhan have been studied for assessing the regional impact of coal mining on land use/vegetation cover. Land use/cover mapping of core and buffer zone of 20 projects have been completed during the year for generating baseline information for Environmental Management Plan. Monitoring of coal mine fire in Jharia, Raniganj, Karanpura and Bokaro coalfield, based on Thermal Remote Sensing data, has also been done for the year 2017-18.

16. COAL BED METHANE (CBM) / COAL MINE METHANE (CMM)

16.1    Collaborative commercial development of CBM in Jharia & Raniganj coalfields by the consortium of CIL & ONGC.

The Govt. has allotted two CBM blocks in 2002 namely Raniganj North CBM Block in Raniganj Coalfield and Jharia CBM Block in Jharia Coalfield to the consortium of ONGC-CIL on nomination basis for commercial development of CBM. ONGC is the Operator for both CBM blocks and carrying out the jobs as per contractual agreement with the Govt. of India and CMPDI provides technical support to CIL in this regard. On completion of CIL part of work programme by CMPDI and supplemented by appraisal activity by ONGC has resulted in formulation of Field Development Plan (FDP) by the Operator i.e. ONGC.

Government of India had approved the FDPs for both the CBM blocks in July,' 2013. Petroleum Mining Lease (PML) for Jharia CBM block has been granted by Govt. of Jharkhand in July' 2015 whereas Environmental Clearance has been granted in April, 2017. FDPs are under revision as per the directive of MoP&NG considering the overlapping issues.

Model Co-development Agreement for Simultaneous Coal Mining and Coal bed Methane (CBM) Operations in the Overlapping Areas was issued by MoP&NG in February, 201 7. Matter of Co-development agreement in regard to Jharia CBM Block in Parbatpur Central Coal Block for optimum exploitation of coal by SAIL and CBM by ONGC (operator of the CBM block) has been finalized and agreed by DGMS. SAIL has conveyed to ONGC to defer the execution of Co-Development Agreement till Mining Lease (ML) is granted to SAIL. ONGC through MoP&NG sought intervention for early execution of Co-Development Agreement. In pursuance to the Steering Committee meeting held on 30th March, 2017 at DGH Revised FDP and cost estimate taking in account all constraints have been prepared by ONGC and accordingly techno-economics has been done by ONGC. FR is under examination at ONGC.

In February, 2018, DGMS has communicated to ONGC that Directorate does not have any objections regarding resumptions of CBM activities in the overlapping area between Parbatpur Coal block of SAIL and Jharia coal block of ONGC provided no underground working shall made at the west side of Fault F5-F5 after starting the CBM drilling operations. Thereafter, Hudro-Fracturing job has been undertaken in Well No. JH14 on 14th March, 2018 considering DGMS no objection.

16.2    CBM and Shale gas related studies under Promotional Exploration during 2017-2018:

16.2.1 CBM related studies:

CMPDI is carrying out studies related to "Assessment of Coalbed Methane Gas-in-Place Resource of Indian Coalfields/Lignite fields" through boreholes drilled during exploration. CBM specific data has been generated from eight boreholes during the year and achieved the target. This study will create the data base for assessment of CBM potentiality and facilitate delineation of more blocks for CBM development.

A report based on CBM related studies on Patratu ABC Block, South Karanpura Coalfield, Jharkhand has been prepared.

16.2.2    Shale gas related studies:

CMPDI is carrying out studies related to "Assessment of Shale Gas-in-Place Resource of Indian Coalfields/Lignite fields" through boreholes drilled during exploration. This study will create the data base for assessment of shale gas potentiality and facilitate delineation of more blocks for Shale Gas development. During the year 2017-18, studies in five boreholes have been completed.

16.2.3    Activities taken up by CBM Laboratory:

Relevant studies like Adsorption Isotherm (AI) studies for 78 numbers of coal samples, Total Organic Carbon (ToC) analysis for 51 number of Shale samples have been completed in addition to CBM studies in 8 boreholes and Shale gas studies in 5 boreholes. Further, analysis of 971 mine air samples received from different collieries of CCL have been completed and results submitted.

16.3    Commercial development of Coal Mine Methane (CMM)

Ministry of Coal vide Office Memorandum dated 29th July, 2015 has permitted CIL to explore and exploit CBM from its areas under coal mining lease allotted to Coal India Limited (CIL). Earlier MoC had made CMPDI the Nodal Agency for development of CMM in India. MoP&NG vide notification dated 3rd November, 2015 has issued guidelines for exploration and exploitation of CBM by Coal India Limited (CIL) and its subsidiaries from areas under coal mining lease allotted to CIL.

MoC has requested MoP&NG to issue modified guidelines considering exemption of applicability of the ORD Act and PNG Rules within coal mining leasehold areas, exemption of penalty in delay in submission of FDP & Production and permission to engage experienced technical developers or service contractor from India or abroad as third party for CBM exploitation, etc. CCEA has given its approval on 11th April, 2018 for issuing a notification amending clause 3(xiii).

Considering Govt. of India permission to CIL in July, 2015 to explore and exploit CBM from its areas under coal mining lease allotted to CIL, steps have been taken up by CMPDI/CIL for identification of potential areas initially in Damodar Valley coalfields within CIL mining leasehold which appears to hold comparatively better potential for CBM. Accordingly, one block each in Jharia coalfield (in BCCL command area) and in Raniganj coalfield (ECL command area) have been identified as prospective CBM/CMM blocks:

1)    Jharia CMM Block (BCCL Area): A block of about 24.32 sq km clubbing Kapuria, Moonidih, Jarma and Singra blocks has been delineated for commercial development in the mining leasehold area of BCCL having CMM resource of 25.22 BCM. Project feasibility report has been prepared based on Reservoir Modelling & Techno-Economic studies and submitted to BCCL for further perusal.

2)    Pre-drainage of coal mine methane at Moonidih mine (BCCL), Jharia Coalfield: Pre-drainage of methane at Moonidih mine (BCCL) in working Seam XVI has been proposed to recover methane to enhance production and safety and recovered gas may also be gainfully utilized. In this regard, a Pre-feasibility report on Pre-drainage of CMM from Moonidih UG mine in Jharia Coalfield has been prepared and submitted to BCCL for competent approval to incorporate Scope of Work for the Global Bid.

An Expression of Interest (EoI) was floated by CMPDI to identify suitable organization to undertake pre-drainage of methane from Moonidih mine of BCCL in Jharia Coalfield. 15 responses to the offers were received against this EoI. Bidder's meet was held on 10th May, 201 7 at CMPDI, Ranchi in which 11 respondents of EoI participated which includes Service Provider/Developer from Australia, USA and Poland. Based on their inputs a draft Tender Specification Document (TSD) was prepared for selection of the suitable experienced developer/service provider through global e-Tendering for carrying out the first pilot project in India. Draft TSD was circulated to respondents and deliberated in the Pre-NIT meeting held on 7th Sept.'17 at CMPDI, Ranchi.

Accordingly, Global Bid Document has been prepared for "Pre-drainage of Coal Mine Methane (CMM) from Moonidih UG Mine". The draft Global Bid Document has been sent to DGH for "Peer Review" also. DGH suggested that E&P of CBM in Moonidih mine can be done pursuant to extant Govt. of India notification dated 3rd Nov.'15 in this regard and CBM/CMM should be sold under the domain of ORD Act 1 948. BCCL may enter into an agreement with Govt. of India on lines similar to the CBM contracts, on a nomination basis because it already holds the coal mining lease. It was also pointed out for methane drainage at Moonidih UG mine permission from MoP&NG is required in pursuant to extant Govt. of India notification dated 3rd Nov.'15. On approval of the BCCL Board, NIT will be published to invite Global e-tender for selection of the suitable experienced developer/service provider.

3)    Raniganj CMM Block (ECL Area): An area of about 57 sq km under mining leaseholds of Sripur, Satgram and Kunustoria Areas of ECL in Raniganj Coalfield has been delineated for commercial development of CMM having CBM resource of 3.93 BCM. Project feasibility report has been prepared based on Reservoir Modelling & Techno-Economic studies and submitted to ECL for further perusal. Considering constraints like Mining lease below Damodar river, limited access of free land & high cost of land required for acquisition, overlapping with GEECL, extensive old working above potential coal seam for CBM etc. it appears that the identified area may be technologically challenging for CBM/CMM extraction.

16.4    CMM/CBM Clearinghouse in India

A CMM/CBM clearinghouse was established at CMPDI, Ranchi under the aegis of Ministry of Coal and USEPA on 17th November, 2008. The clearinghouse is functioning as the nodal agency for collection and sharing of information on CMM/CBM related data of the country and help in the commercial development of CMM Projects in India by public/private participation, technological collaboration and bringing financial investment opportunities.

The clearinghouse has been established with financial support from Coal India Ltd. on behalf of Ministry of Coal and US EPA. The 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. After completion of initial three years term it was extended for another three years thereafter. USEPA had further extended support for additional term i.e. three years up to 2017. US EPA is intended to extend their support for 2018-21 (3 Yrs).

17. Commercial development of Underground Coal Gasification (UCG)

MoC has constituted Inter Ministerial Committee (IMC) for identification of areas for UCG on the line broadly similar to the existing policy of CBM development. Potential blocks in coal (7) and lignite (7) were identified and considered in the IMC for the commercial development of UCG preferably by PSUs. Identified Coal blocks for UCG development are in Wardha Valley Coalfield (Jogapur-Sirsi), Sohagpur Coalfield (Maiki (North)-Maiki-Merkhi, Pathora, Chainpa), Tatapani-Ramkola Coalfield (Reonti-West), Godavari Coalfield (Yelendu) and Singrauli Coalfield (Bandha).

Model Bid Document & Model Contract Document for Development of UCG has been submitted to MoC for consideration. A coal block (Kasta West) in Raniganj Coalfield under ECL Command area has also been identified to undertake Pilot Scale UCG Project under R&D model in association with ECL/CMPDI/CIL.

18 S&T and R&D Projects

18.1    Projects on Coalbed Methane

18.1.1    S&T Project on "CBM Reserve Estimation for Indian coalfields”

A S&T project on "CBM Reserve Estimation for Indian coalfields" is under implementation where IIEST, Shibpur is the main implementing agency and NGRI, Hyderabad, CMPDI and TCE, Kolkata are sub implanting agencies. This project is approved under EoI of Coal S&T project of MoC. The project is of 3 years duration with the revised completion schedule of March, 2019. Draft report of 2D Seismic survey conducted in South Karanpura Coalfield has been submitted by NGRI where 5 sq km area has been delineated for 3D seismic survey which is likely to be undertaken by NGRI by December, 2018.

18.1.2    S&T Project on "Capacity Building for Extraction of CMM Resource within CIL Command Areas"

A S&T project on "Capacity Building for Extraction of CMM Resource within CIL Command Areas" has been approved under Coal S&T project of MoC and is under implementation. CMPDI is the implementing agency and CSIRO, Australia is sub-implementing agency. The project completion schedule is March, 2019. The technical specification for laboratory equipment have been finalized in association with CSIRO and equipment are under procurement. Training of CBM Personnel and CBM Lab Personnel took place by CSIRO on laboratory procedures and field testing protocols.

18.2    Project on Shale Gas

18.2.1    S&T Project on "Shale gas potentiality of Damodar Valley basins of India"

A S&T project on "Shale gas potentiality of Damodar basin of India" under S&T plan of Ministry of Coal (MoC) is under implementation. The project objective is to evaluate Damodar basin for their shale gas potentiality through integrated geophysical, geological, geo-chemical and petro-physical investigations. The revised completion schedule is November, 2018.

NGRI along with CMPDI & CIMFR selected Rangamati B block (Tumni & Kanchanpur Sector), Raniganj Coalfield and 3D seismic survey in 2.4 sq km out of total 3.2 sq km area has been completed. Four boreholes have been proposed by NGRI for validation of interpretation. 3D seismic survey has started in Radhanagar block, Jharia Coalfield. On completion of 3D Seismic Survey findings, CMPDI will take up its part of committed activities i.e. drilling of deep boreholes.

18.3    Project on VAM

18.3.1    CMPDI has formulated a project jointly with CSIRO titled "Abatement and utilization of Ventilation Air Methane (VAM) from working underground degree - III coal mine in India". The implementing agencies for the project will be CSIRO and CMPDI with BCCL as a sub-implementing agency. Identified project mine is Moonidih Underground Mine in Jharia Coalfield of Bharat Coking Coal Ltd. (BCCL). CIL R&D Board has approved, in principle, the project with 100% retroactive funding at present and in due course 40% should be reimbursed from National Clean Energy & Environment Fund (NCEEF) for project duration of 36 months. CSIRO was requested to prepare a draft collaborative agreement which is to be signed between CMPDI and CSIRO.

19. GEOLOGICAL EXPLORATION & DRILLING

CMPDI has substantially improved the capacity of drilling during XI & XII plan period. As against the achievement of 2.09 lakh metre in 2007 08, CMPDI has achieved 5.63 lakh metre in 2012-13, 11.26 lakh metre in 2016-17 and 13.66 lakh metre achieved in 2017-18 (Growth of 21% over 2016-17) through departmental resources and outsourcing.

19.1    Drilling Performance in 2017-18

CMPDI deployed its departmental resources for detailed exploration of CIL/Non-CIL blocks whereas State Govts. of MP and Odisha deployed resources in CIL blocks only. Besides, eight other contractual agencies have also deployed resources for detailed drilling/exploration in CIL/Non-CIL blocks. A total of 140 to 160 drills were deployed in 201 7-18 out of which 66 were departmental drills.

Apart from it, CMPDI continued the technical supervision of Promotional/NMET Exploration work undertaken by MECL in Coal Sector (CIL Areas) in 8 blocks. Apart from it, DGM(Nagaland) has also undertaken Promotional Exploration in 1 block & CMPDI in 2 blocks in Coal Sector on behalf of Ministry of Coal. Promotional/NMET Exploration work were undertaken by MECL in Lignite Sector in 5 blocks & GSI in 1 block. A total of 1.35 lakh metre of Promotional (Regional) drilling was carried out in Coal (0.93 lakh metre) & Lignite (0.42 lakh metre) during 2017 18 through CMPDI.

In 2017-18, CMPDI and its contractual agencies took up exploratory drilling in 118 blocks/mines of 18 coalfields situated in 6 States. Out of 118 blocks/mines, 42 were Non-CIL/Captive blocks and 76 CIL blocks/mines. Departmental drills of CMPDI took up exploratory drilling in 50 blocks/mines whereas contractual agencies drilled in 68 blocks/mines.

19.2    Geological Reports:

In 2017-18, 23 Geological Reports were prepared on the basis of detailed exploration conducted in previous years. The prepared Geological Reports have upgraded about 5.0 Billion Tonnes of additional coal resources to 'Proved' category.

Under Promotional Exploration Programme, GSI and MECL have submitted 3 Geological Reports on coal blocks, established about 0.89 Billion Tonnes of coal resources, in 'Indicated' & Inferred categories, above specified thickness.

19.3    Hydrogeology

Hydrogeological studies of a number of mining projects/mines were taken up for preparation of 'Groundwater Clearance Application' for CGWA approval and EMP clearance. Hydrogeological studies for 18 mining projects were completed during the year and studies for 7 mining projects were in progress.

49 nos. of Hydrogeological studies on GR/PR and others have been completed during this period. 7 nos. of Hydrogeological reports on Location and Design of Piezometers have been prepared and submitted. Hydrogeological studies in 9 projects have been carried out for water supply arrangement to mines, colony and villages.

19 nos. of Groundwater Applications have been prepared and submitted online for WCL. Hydrogeological investigation for slope failure of benches at Juna-Kunada OCM, WCL was also carried out.

CMPDI is carrying out groundwater monitoring of MOEF cleared projects (74 nos. of mines of WCL area and 15 nos. Cluster of mines in BCCL area). Water level monitoring in other areas of ECL, CCL, SECL, NCL and MCL were also carried out.

19.4    Geophysical survey

Geophysical Logging: Boreholes drilled for exploration purposes were geophysically logged to get the in-situ information of different strata encountered in the boreholes. During the year 201 7-18, a total of 3,41,422 metre of geophysical logging has been carried out for this purpose in CIL and Non-CIL projects with multi-parametric geophysical logging equipment. Out of this, 1,33,674 metre depth of logging was done by 6 departmental geophysical logging units and 2,07,748 metre depth of logging was carried out by contractual agencies.

Surface Geophysical Surveys: CMPDI has also undertaken Electrical Resistivity & Magnetic Survey in CIL and Non-CIL blocks for delineation of In-crop of coal seams, delineation of dykes and ground water investigation. A total of 272.1 line km of Resistivity profiling, 207 Vertical Electrical Sounding (VES) and 126.26 line km of Magnetic survey have been carried out in 2017-18 for such purpose. With the 48-Channel signal enhancement Seismographs, a total of 122 line km of High Resolution Shallow Seismic (HRSS) survey has been carried out in Bartara block, Sohagpur Coalfield, Gautamdhara and Block-IV blocks in Ib valley Coalfield and Sakhigopal-A block, Talcher Coalfield.

The State of the art PARADIGM software for processing and interpretation of 2D Seismic data has been installed at CMPDI and all the Seismic reports henceforth will be prepared by utilizing this programme.

Reports : A total of 23 Geophysical reports have been submitted during the year 201 7-18. It includes five reports on geophysical logging, twelve on resistivity survey, and four on magnetic survey. In addition, two number of reports on HRSS survey in Kewai and Baheraband blocks of Sohagpur Coalfield were also submitted in 201 7-18.

20.    OUTSIDE-CIL CONSULTANCY SERVICES

During the year 2017-18, 41 outside-CIL consultancy jobs were successfully completed by CMPDI for 31 organisations outside CIL. Some of the major clients/organizations are NTPC Ltd., MOIL Ltd., Maharashtra State Power Generation Co. Ltd. (MAHAGENCO), THDC India Ltd., Odisha Coal and Power Limited (OCPL), Gujarat State Electricity Corporation Limited (GSECL), Madhya Pradesh Power Generating Co. Ltd. (MPPGCL), etc.

Presently, 29 outside-CIL consultancy jobs are being executed by CMPDI for 16 organisations like OCPL, NALCO, NTPC Ltd., SAIL, NLC India, THDC India Ltd., National Mineral Development Corporation (NMDC), Jharkhand State Mineral Development Corporation (JSMDC), Odisha Mining Corporation Ltd. (OMC), PFC Consulting Limited (PFCCL), HINDALCO, Talcher Fertilizers Ltd., etc.

During the year 2017-18, 47 outside-CIL consultancy jobs worth ' 66.77 crores were procured by CMPDI from 27 organizations which includes consultancy jobs from Ministry of Coal, PSUs/Govt. Organizations and Private Companies.

21.    RESEARCH & DEVELOPMENT PROJECTS

21.1 R&D Projects under S&T Grant of Ministry of Coal

The Research & Development (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 of Coal India Limited (CIL), CMDs of Central Mine Planning & Design Institute Limited (CMPDI), Singareni Collieries Company Limited (SCCL) and NLC India Limited (NLCIL), Director General (DG) of Directorate General of Mines Safety (DGMS), Director General of Council of Scientific & Industrial Research (CSIR), representatives from Department of Science & Technology; Adviser Energy, NITI Aayog; Director, CMIFR, Dhanbad and Director, TERI. The main functions of SSRC are to plan, program, budget, approve new research projects, oversee their implementations and seek application of the R&D findings in actual field condition.

The SSRC is assisted by a Technical sub-committee headed by CMD, CMPDI. This sub-committee deals with new research proposals related to production, productivity and safety in coal mines, coal beneficiation and utilization, clean coal technologies, protection of environment and ecology, etc.

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, scrutiny and processing the proposals for Government approval, preparation of budget estimates for research activities, disbursement of fund to implementing agencies based on the progress of the project and monitoring the progress of the projects, etc.

-    Total no. of S&T projects taken up (till 31.03.2018) - 396 nos.

-    Total no. of S&T projects completed (till 31.03.2018) - 321 nos.

21.1.1 Physical performance

The status of Coal S&T projects during 2017-18 is as under:

(in nos.)

i)

Projects on-going as on 1.4.2017

13

ii)

Projects approved by SSRC

6

iii)

Projects completed

2

iv)

Projects on-going as on 01.4.2018

17

21.1.2    Following coal S&T projects were approved during 2017-18:

1.    Indigenous development of early warning radar system for predicting failures/slope instabilities in open cast mines - SAMEER, Mumbai; ARDE, Pune; CSRE; IIT, Mumbai; CMPDI, Ranchi and NCL, Singrauli.

2.    Design of water network to optimize water consumption in coal washeries for removal of impurities from coal - IIT, Roorkee; CMPDI, Ranchi & CCL, Ranchi.

3.    Electronification of ground water control and conveyor systems in mines - NLC India Ltd., Neyveli and NITT, Tamil Nadu.

4.    Design and Stability of Pillars/Arrays of Pillars for Different Mining Methods in Coal Mine Workings - CIMFR, Dhanbad; IIT-ISM, Dhanbad; CMPDI, Ranchi; SECL, Bilaspur; BCCL, Dhanbad and SCCL, Kothagudem.

5.    Hybrid PRESRIX process for simultaneous remediation of acid mine drainage and recovery of individual metal sulphides - IIT, Roorkee; NEC, Margherita and SCCL, Kothagudem.

6.    Reclamation of coal mined land of North Eastern Coalfields, Assam through soil amendment and revegetation with native plant species using integrated biological approach - Rain Forest Research Institute (RFRI), Jorhat and NEC, Margherita.

21.1.3    Following Coal S&T projects were completed during 2017-18:

1.    Development of an on-line coal washability analyser - CIMFR, Dhanbad and M/s Ardee Hitech Pvt. Ltd., Vishakhapatanam.

2.    Sustainable livelihood activities on reclaimed open cast coal mines: a technology enabled integrated approach in Indian coal sector - TERI / TERI University, New Delhi; CMPDI, Ranchi and BCCL, Dhanbad.

21.1.4    Financial Status :

Budget provisions vis-a-vis actual fund disbursement during the period are given below:

(in Rs, Crores)

2016

-17

2017 -18

BE

Actual

BE

Actual

10.0

10.38

10.0

11.50

(Including NER - 1.0)

 

(Including NER - 1.0)

 

21.2 CIL R&D Projects

R&D Board of CIL, headed by Chairman, CIL is responsible for in-house R&D activities of CIL. The R&D Board is assisted by an Apex Committee headed by Director (Tech.), CIL. CMPDI acts as the Nodal Agency for preparation of budget estimates for research activities, evaluation of new project proposal, disbursement of fund to implementing agencies based on the progress of the project and monitoring the progress of the projects till their completion, etc.

In order to enhance R&D base in command areas of CIL, the CIL Board in its meeting held on 24th March 2008 has delegated substantial powers to CIL R&D Board and also to the Apex Committee of the R&D Board. The Apex Committee is empowered to sanction individual R&D project up to Rs, 5.0 Crore value with a limit of Rs, 25.0 Crore per annum considering all the projects together whereas CIL R&D Board is empowered to sanction individual R&D project up to Rs, 50.0 Crore with a limit of Rs, 500.0 crore in a year.

So far, 86 projects have been taken up under the fund of CIL R&D Board, out of which 62 projects have been completed till March, 2018. The status of CIL R&D Board Projects during 201 7-18 is as follows:

(i)    Projects on-going as on 1.4.2017    -    14

(ii)    Projects approved by R&D Board of CIL    -    7

(iii)    Projects on-going as on 1.4.2018    -    21

21.2.1    Following new R&D projects were approved during 2017-18:

1.    Design of cost effective process flowsheet for improved washing efficiency of Indian Coking and Non-coking coals - IIT-ISM, Dhanbad; CMPDI, Ranchi and BCCL, Dhanbad (Technical collaboration with University of Newcastle (NIER Centre), Newcastle, Australia).

2.    Development of Guidelines for increasing the height of overburden dumps at opencast coal mines in India - IIT-ISM, Dhanbad and CMPDI, Ranchi (Technical Participation - University of Queensland, Brisbane, Australia).

3.    High ash coal gasification and associated upstream and downstream processes (Coal to Chemicals, CTC) - IIT-ISM, Dhanbad; IIT-Roorkee; CMPDI, Ranchi; MCL, Sambalpur; ECL, Sanctoria and CCL, Ranchi (Technical collaboration of IIT-ISM, Dhanbad with Australian Universities viz. i) Curtain University, Perth, Western Australia, ii) University of Melbourne, Melbourne, Victoria and

iii) Monash University, Clayton, Victoria).

4.    Assessment of applicability and performance of Ground based Interferometry Synthetic Aperture Radar (GbInSAR) in safety zoning of surface mining slopes - IIT, Kharagpur and ECL, Sanctoria.

5.    Optical fiber based solar illumination of pit bottom and underground mine roadways and working face - IIT, Kharagpur and ECL, Sanctoria.

6.    Development of Virtual Reality Mine Simulator (VRMS) for improving safety and productivity in coal mines - IIT-ISM, Dhanbad; CMPDI, Ranchi; BCCL, Dhanbad; NCL, Singrauli and SIMTARS, Australia.

7.    Dry Beneficiation of High Ash Indian Thermal Coal - National Metallurgical Laboratory (NML), Jamshedpur; CMPDI, Ranchi and MCL, Sambalpur.

21.2.2    The disbursement of fund for CIL R&D projects during 2017-18 was ? 59.24 Crore.

21.2.3    New initiatives:

Application of drone technology was tested for the first time in CIL on pilot scale. Drone based sensors were used in two projects of CCL namely, Rajrappa and Topa for monitoring of land reclamation and identification of sites of illegal mining, respectively. In NCL, drone based sensors were used in four projects namely, Jayant, Nigahi, Dudhichua and Amlohri for generation of ortho-photo, contours, DTM and computation of stockpile volume. The results in all the above cases were very encouraging and would lead to adoption of this technology for regular use after the Govt. of India's policy on drone/UAV is released.

22. INFORMATION AND COMMUNICATION TECHNOLOGY IN CIL

CIL and its subsidiaries have utilized Information and communication technology to achieve faster strategic decision making and optimal utilization of available resources for enhancing production and productivity. Systems have been introduced to minimize pilferage of coal and also to increase transparency for the satisfaction of its stakeholders.In this regard, the following key initiatives have been taken:

1.    E-office application for CIL and its Subsidiaries is implemented. The project intends to enhance the business process management of the organization and aims to improve production, productivity, and increase transparency by replacing the old manual process with an electronic file system. WAFA (Work Anytime from Anywhere) has also been implemented to provide access to users of E-office from any location beyond the office hours.

2.    Coal India has digitized more than 80 Lakhs of documents at its corporate Hq to create a knowledge base under the project DDMA (Document digitization and Archival Management).

3.    The subsidiaries have CoalNet and other Information systems in place for obligatory accounting, finance, payroll, material management system and other business functions.

4.    CIL has introduced mobile Apps like SEVA, GSKV for the benefit of its regular customers as well as Power sector customers.

5.    CIL has introduced an e-portal for Coal quality monitoring also for its customers.

6.    Coal India is also in the process of implementation of ERP at CIL and Pilot subsidiaries. Tender for selection of the Service Integrator for the ERP has been floated and in the process of finalization.

7.    GPS based Operator Independent Truck Dispatch System (OITDS) with high speed Data and Voice communication is implemented in the targeted eleven Open cast projects to optimize operation of HEMM to enhance the production and productivity of the mine.

8.    GPS/GPRS based Vehicle Tracking System across all major mines of Coal India has been implemented at different subsidiaries along with Geo-fencing, boom barriers and RF-ID system to monitor coal transportation and to minimize pilferages.

9.    Electronic Surveillance through CCTV at weighbridges, workshops, coal dumps and other strategic locations has been implemented and process has been initiated to cover all projects.

10.    Coal India has introduced an e-portal on Contract Labour Information system to keep an eye on fair payment to Contract workers deployed at various locations.

11.    Biometric attendance system has been introduced in most parts of CIL and its subsidiaries.

12.    In order to improve coal dispatch, electronic weighbridges are connected with Central Servers of respective subsidiaries and initiatives have been taken up for implementing online generation of Challans/invoices.

13.    E-Auction of coal, E-procurement and Reverse auction systems for all goods, works and services have been implemented to speed up procurement process and to achieve transparency in the system.

14.    E-payment to employees and vendors, E-filing of grievances are in operation to embark upon the business process through IT initiatives.

15.    Corporate Mail Messaging System is in place for corporate email IDs to all the officers of Coal India and its Subsidiaries.

16.    In order to meet the demanding business process, state-of-art IP based EPABX with support of convergent technology for voice and data, Radio communication System and UG communication system at different locations of Coal India and its subsidiary companies are operational.

1 7. The Web Portal of Coal India is in place in English and Hindi encompassing the features like Tender publication, Vigilance corner, Investor center, Customer corner, etc. to facilitate all stake holders.

18.    Multi-Protocol Layered Switching (MPLS) based Video Conferencing between CIL, Subsidiaries, CIL HQ, CIL Office, Delhi and MoC for enhancement of decision making process for better production and productivity has been successfully implemented. CIL and subsidiaries have also implemented Video Conferencing connectivity with External agencies across the globe.

19.    CIL has implemented in-house online portals for Performance evaluation, quality analysis, Vigilance clearance, Land Information System, filing of Annual Property Return through web enabled system.

20.    State-of-art Tier-III Data Center has been established in New building of the corporate office of Coal India Limited for facilitating future IT applications.

23. MINES SAFETY

23.1: Statutory Frame-work for safety in coal mines:

Coal mining, world over, is highly regulated industry due to presence of many inherent, operational and occupational hazards and associated risks. Coal Mine Safety Legislation in India is one of the most comprehensive and pervasive statutory framework for ensuring occupational health and safety (OHS). Compliance of these safety statutes is mandatory.

In India, the operations in coalmines are regulated by the Mines Act- 1952, Mines Rules -1955, Coal Mines Regulations-201 7 and several other statutes framed there under. Directorate-General of Mines Safety (DGMS) under the Union Ministry of Labour & Employment (MOL&E) is entrusted to administer these statutes. The following are the statutes that are applicable in coal mines for occupational health and safety (OHS).

SN

Statute

1

The Mines Act -1952

2

The Mines Rules -1955

3

The Coal Mines Regulations - 2017

4

The Mines Rescue Rules -1985

5

The Electricity Act- 2003

6

Central Electricity Authority (measures rel. to safety & supply) Regulations - 2010

7

The Mines Vocational Training Rules -1966

8

The Mines Creche Rules -1966

9

Indian Explosive Act, 1884

10

The Explosive Rules - 2008

11

Indian Boiler Act, 1923

12

Mines Maternity Benefit Act & Rules -1963

13

The Workmen Compensation Act - 2009

14

The Factories Act - 1948 Chapter -III & IV

23.2 : Safety Policy of CIL : Safety is always given prime importance in the operations of CIL as embodied in the mission statement of CIL. CIL has formulated a well-defined Safety Policy for ensuring safety in mines and implementation of the same is closely monitored at several levels.

1)    Operations and systems will be planned and designed to eliminate or materially reduce mining hazards;

2)    Implement Statutory Rules and Regulations and strenuous efforts made for achieving superior standards of safety;

3)    To bring about improvement in working conditions by suitable changes in technology;

4)    Provide material and monetary resources needed for the smooth and efficient execution of Safety Plans;

5)    Deploy safety personnel wholly for accident prevention work;

6)    Organize appropriate forums with employees' representatives for joint consultations on safety matters and secure their motivation and commitment in Safety Management;

7)    Prepare annual Safety Plan and long term Safety Plan at beginning of every calendar year, unit-wise and for the company, to effect improved safety in operations as per prevailing geo-mining conditions to prepare the units for onset of monsoon, to fulfill implementation of decisions taken by Committee on Safety in Mines and Safety Conferences and to take measures for overcoming accident proneness as may be reflected through study of accident analysis, keeping priority in sensitive areas of roof-falls, haulage, explosives, machinery etc.

8)    Set up a frame work for execution of the Safety Policy and Plans through the General Managers of Areas, Agents, Managers and other safety personnel of the units;

9)    Multi-level monitoring of the implementation of the Safety Plans through Internal Safety Organization at the Company Headquarters and Area Safety Officers at area level;

10)    All senior executives at all levels of management will continue to inculcate safety consciousness and develop involvement in practicing safety towards accident prevention in their functioning;

11)    Institute continuous education, training and retraining of all employees with the emphasis laid on development of safety oriented skills;

12)    Continue efforts to better the living conditions and help all the employees both in and outside the mines.

To implement CIL Safety Policy, the following are provided:

1.    Provision of adequate funds for safety.

2.    Deployment of adequate numbers of trained manpower for ensuring safety in mining operations.

3.    A well-structured and multi-disciplinary Internal Safety Organization (ISO) established in all the subsidiaries of CIL to monitor implementation of CIL's Safety Policy.

4.    Continuous and sustained improvement in technological inputs for mining operation.

5.    Support of scientific planning and R&D activities made available through in-house expertise of CMPDIL and in collaboration with the other scientific agencies and reputed educational institutes.

6.    Ensuring workers' participation in every forum for monitoring safety in mines.

23.3: Accident Statistics

Analysis of Accident Statistics in CIL - Accidents statistics is the relative indicator for safety status in mines. Over the years, the safety performance of CIL has improved significantly.

This improvement in mine safety in CIL is attributed to the following factors:

-    Collective commitment and synergetic collaboration of the Management, Employees, the regulator (DGMS) and Trade Unions.

-    U se of state-of-the-art technology in the field of Mining Methods, Mining Machineries and Safety Monitoring Mechanism.

-    Continuous improvement in knowledge, skill and responsiveness of workforce through imparting excellence safety training and persistent safety awareness drives.

-    Constant vigil, round-the-clock supervision and supports from various agencies.

Salient features of continuous and sustained improvement in CIL's safety performance is disclosed in Annexure 18.

23.4    Major Job Activities for Safety & Rescue Division of CIL:

1.    Appraising the higher authority regarding any matter pertaining to mine safety.

2.    Monitoring implementation of Safety Policy of CIL in different subsidiaries through ISO.

3.    Regular inspection to monitor safety status of mines.

4.    Conduct preliminary inquiry into incidences such as mine fire, in-rush of water, slope failure etc. as well as all fatal accidents.

5.    Monitor the safety related to MOU performance of all subsidiaries as well as CIL.

6.    Organizing CIL Safety Board meeting and National Dust Prevention Committee (NDPC) meeting at corporate level and monitoring the implementation of recommendations made during these meetings.

7.    Imparting advanced and specialized training (on preparation of risk based Safety Management Plan) to unit level and Area level executives of different subsidiaries with help of the executives who are accredited by SIMTARS (Safety in Mines, Testing and Research Station), Australia.

8.    Liaison with MOC, DGMS, National Safety Council (NSC), Bureau of India Standards (BIS) and different educational and research/ scientific institutes.

9.    Issuance of internal technical circulars and guidelines related to different safety issues and monitoring their implementation.

10.    Prepare safety aspects for the Annual Report of Board of Directors and MOC.

11.    Prepare Agenda Notes related to mine safety for meeting of CMDs, FDs and Board of Directors of CIL.

12.    Maintenance of Accidents Statistics / Database.

13.    Reply of different parliamentary questions related to mine safety.

14.    Reply to different queries on mine safety raised by different standing committees such as standing committee on Coal & Steel, Standing Committee on Energy, Standing committee on Labour, PCCM as well as questions raised by COPU, MOC, CA&G and VIPs from time to time.

15.    Initiate and monitor safety related R&D projects in CIL.

16.    Monitoring Rescue Infrastructure and their preparedness.

1 7. To monitor implementation status of recommendation of different court of inquiries constituted under section 24 of the Mines Act- 1952.

18.    To monitor implementation status of recommendation of National Safety Conferences.

19.    To co-ordinate with all Internal Safety Organization (ISO)s on various matters related to safety.

20.    Quarterly publication of Safety Bulletin for disseminating and sharing of knowledge in order to promote safety awareness and inculcate better safety culture.

21.    Instant sharing of incidences/accidents amongst subsidiary personnel for immediate corrective action and prevention.

22.    Intense awareness drive during "Meri Company Mera Gaurav" celebrations in all subsidiaries.

23.    One day workshop on Mine safety at area and subsidiary level in the month of February 2018.

23.5    Measures for improvement of Mine Safety in 2017-18.

CIL has vigorously pursued several measures in the year 2017 alongwith on-going safety related initiatives, apart from compliance of statutory requirements for enhancing safety standard in mines of CIL and its Subsidiaries, which are given below:

- Conducting Safety Audit: Safety Audit of all operating mines of CIL has been conducted through multi-disciplinary Inter-Company Safety Audit teams in 201 7 for assessing safety status of mines and violations pointed out during the said safety audits are being rectified as per the stipulated timeline.

-    Online Safety Monitoring System: Online Centralized Safety Monitoring System "CIL Safety Information System (CSIS)" has been developed and uploaded in CIL website. Relevant safety related information from each mine is being uploaded in the same system on continual basis for better safety management.

-    Imparting Special Training by SIMTARS, Australia accredited Trainers: Executives who had undergone specialized training on Risk Assessment from SIMTARS, Australia are engaged in imparting training and upgrading the knowledge of Mine level executives as well as Members of Safety Committees of individual mines to identify the hazards and evaluate the associated Risks in the mines so as to prepare Risk assessment based Safety Management Plans (SMPs), Principal Hazards Management Plans (PHMPs) and Standard Operating Procedures (SOPs).

-    Establishment of Geo-Technical Cell in all subsidiaries - Geo-Technical cells have been established in all subsidiary HQ headed by a senior level officer of Mining Discipline and assisted by adequate number of Multi - Disciplinary technical experts including Geologist.

-    Safety Management Plans (SMPs) - Site-specific risk assessment based SMPs has been prepared for each mine of CIL by involving mine officials and workmen and the same are being updated on continual basis. The process of Risk Assessment in mines is continuous and ongoing for improving Safety Standards of Mines on real time basis. All SMPs are being monitored through ISO of each subsidiary.

-    Principal Hazards Management Plans (PHMPs): Principal Hazards Management Plans (PHMP) are also being formulated as a part of Safety Management Plan (SMP) to avert any mine disaster or major mine accident. Recommended control measures thereof in form of Trigger Action Response Plan (TARP) are being implemented to safety deal with emergency, if any.

-    Standard Operating Procedures (SOPs): Site-specific, Risk Assessment based Standard Operating Procedures (SOPs) for all Mining and Allied operations are framed and implemented. The same are being updated on continual basis to cater to the changing mine dynamics.

-    Conducting Special Safety Drives on different Safety Issues: Special Safety drives on different safety matters are being organized to improve safety standard of mines and enhance safety awareness amongst employees.

-    OB dump Stability Study: Assessment of OB Dumps and Benches have been conducted thoroughly by using expertise of CMPDIL and multi-disciplinary ISO teams in most of the opencast mines. Corrective actions are being taken based on the findings of aforesaid assessment.

-    Guidelines on corrective measures: Several directives / guidelines on corrective measures for prevention of recurrence of similar type of accidents/incidences in future are being issued by the Safety & Rescue Division of CIL, after analysis of fatal accidents.

Apart from the above specific actions, the following are on-going measures for improving safety standards:

1.    Emphasis on adoption of the state-of-the art technology in suitable geo-mining locales.

a.    Adoption of Mass Production Technology (MPT) in more number of UG mines.

b.    Deployment of more number of Surface Miners to eliminate blasting operation in OCPs.

c.    Deployment of relatively higher capacity HEMM in more number of OCPs.

d.    Mechanization of UG drilling.

e.    Phasing out manual loading in UG mines.

2.    Adoption of the state-of-the art mechanism for Strata Management

a.    Scientifically determined Rock Mass Rating (RMR) based Strata Support System.

b.    Strata Control Cell for monitoring efficacy of strata support system.

c.    Mechanized Drilling for Roof bolting.

d.    Use of Resin Capsules in place of Cement capsules.

e.    Use of modern Strata Monitoring Instruments.

f.    Imparting quality training to support crews & front-line mine officials, supervisors & grass root level workmen.

3.    Mechanism for monitoring of mine environment:

a.    Detection of mine gases by using Methanometer, CO-detector, Multi-gas detector etc.

b.    Continuous monitoring of mine environment by installing Environmental Tele Monitoring System (ETMS) & Local Methane Detectors (LMD) etc.

c.    Regular Mine Air Sampling and Analysis by Gas Chromatograph.

d.    Personal Dust Sampler (PDS).

e.    Use of Continuous Ambient Air Quality Monitoring System (CAAQMS) in large OCPs to assess the ambient dust concentration and take suitable mitigative measures.

4.    Strengthening Water Danger Management:

a.    Conducting Check Survey & Joint Survey to eliminate errors in mine survey.

b.    Preparation and maintenance of seam-wise Water Danger Plan.

c.    Preparation and implementation of Monsoon Action Plan.

d.    Adequate Pumping Facilities with adequate capacity of Sumps.

e.    Liaison with the State Meteorological Dept. & Dam Authority.

f.    Construction of Embankments with proper design against water bodies.

g.    Inter-mine joint survey between adjoining mines to prove inter-mine barriers to prevent transference of danger.

5.    Training on Mine Safety & Skill Up gradation:

a.    Initial and Refresher training & On-the-Job Training as per statute.

b.    Training on Simulators to dumper operators.

c.    Skill up-gradation of frontline mining supervisors / officials on continual basis.

d.    Specific training of all employees including Members of Safety Committees and contractual workmen on continual basis.

6.    Mine Safety Inspection:

a.    Round-the-clock Supervision of all mining operations by adequate number of competent & statutory Supervisors and mine Officials.

b.    Periodic mine Inspections by Head Quarter and Area level senior officials.

c.    Surprise back shift mine Inspections by mine and area level officials.

d.    Regular Inspection by Workmen Inspectors appointed in each mine.

e.    Regular mine Inspection by officials of Internal Safety Organization of respective subsidiary and CIL.

7.    Steps for prevention accidents in OCPs:

-    Formulation and Implementation of Mine-specific Traffic Rules.

-    Code of Practices for HEMM Operators, Maintenance staff & others.

-    Special training of Contractor's Workmen involved in contractual jobs.

-    Training imparted to dumper operators on Simulators.

-    Lighting arrangement using high mast towers for enhancement of illumination as per stipulated guidelines.

-    Eco-friendly Surface Miners for blast free mining and avoidance of associated risks.

-    Dumpers fitted with Proximity Warning Devices, Rear view mirrors and camera, Audio-Visual Alarm (AVA), Automatic Fire Detection & Suppression System (AFDSS) etc.

-    Ergonomically designed seats & AC Cabins for operators' comfort.

-    Wet Drilling & water Sprinklers for dust suppression.

-    GPS based Operator Independent Truck Dispatch System (OITDS) in large OCPs for tracking movement of HEMMs inside OC mine.

8.    Mine Emergency Response System:

-    Emergency Action Plans has been prepared as per statute for each mine.

-    Mock Rehearsals for examining the efficacy of Emergency Action Plan.

-    Demarcating Emergency Escape Routes in below ground.

-    Check list prepared for dealing with an emergency in mine.

-    Flow Chart prepared for transmission of information regarding crisis / disaster in mines from site of accident to the Ministry of Coal, New Delhi.

24. Mine Rescue Services in CIL:

-    CIL is maintaining a well establishment Rescue Organization comprising of 6 Mine Rescue Stations (MRS), 13 Rescue Rooms-with-Refresher Training facilities (RRRT) and 17 Rescue Rooms (RR).

-    All Rescue Stations / Rescue Rooms are fully equipped with adequate numbers of rescue apparatus as per the Mine Rescue Rules (MRR) - 1985.

-    This Rescue Organization is staffed with adequate numbers of Rescue Trained Personnel (RTP) as per the MRR-1985.

-    All RTP are being periodically re-trained to conduct rescue operations in hot, humid and irrespirable atmospheres in modern training galleries as well as in mines.

-    CIL employs Permanent Brigade Members and RTPs who are on call 24x7.

-    The Mine Rescue Station and Rescue Rooms are established at strategic locations spreading across different Subsidiaries to cater to the emergencies in their command area. The details are as under:

 

Rescue establishment presently operating

 

Company

Mine Rescue Station (MRS)

Rescue room with Refreshers Training (RRRT)

Rescue Room (RR)

ECL

Sitarampur

Kenda

Jhanjra ,Kalidaspur,Mugma

BCCL

Dhansar

-

Moonidih, Madhuband, Sudamdih

CCL

Ramgarh

Kathara & Churi

Dhori, Kedla & Urimari

SECL

Manindragarh Bisrampur, Baikunthpur

Sohagpur, Kusmunda, Johilla, & Kotma, korba

Chirimiri, Raigarh, Bhatgaon, Jamuna

WCL

Nagpur

Parasia, Pathakhera,Tadali

Damua , New Majri & Sasti

MCL

B raj raj Nagar

Talcher,

-

NEC

-

Tipong

-

Total

6

13

17

25. Safety Monitoring Mechanism in CIL:

- Statutory Regulator for Mine Safety - The Directorate General of Mine Safety (DGMS) is vested with the responsibility to ensure compliance of provisions under the Mines Act- 1952 and Rules & Regulations made there under for improvement in standard of safety in mines. The structure of DGMS is as follows:

26.    HUMAN RESOURCE DEVELOPMENT

Coal India Limited has an ambitious target of achieving its coal production of 1 billion ton in coming years. For achieving this goal, Coal India Ltd is geared up for the development of its Human Resources to prepare them for technological advances and skill requirements for future to fulfill the growing demands of production along with diversification into different areas.

During 2017-18, different training programs were organized at subsidiary HQs, Training Centers, Vocational Training Centers (VTCs) and also at CIL's own in-house advance training facility viz Indian Institute of Coal Management (IICM), Ranchi. These training programs were organized after assessing the training needs in the respective category of employees.

In addition to in-house training, employees were trained at reputed training institutes within the country and abroad, in their respective field of operations for supplementing our in-house training efforts.

The total manpower of the CIL as on 01.04.201 7 was 3,10,016 which has become 2,98,757 as on 31/03/2018. Employees were given training for skill development and acquisition of knowledge and skill in existing and future technology, as well as on safety. During the year more than 6,02,300 training man-days were achieved for these employees including executives & non-executives and excluding contract workers.

26.1    Special Initiatives:-

-    5 weeks intensive training for 89 Assistant Managers/Management Trainees was organized at IIT(ISM), Dhanbad.

-    125 middle level executives were exposed to two weeks training on General Management at Administrative College of India (ASCI), Hyderabad to equip them to take up higher responsibilities.

-    179 E4/ E5 level executives were sent for two weeks training programme on Executive Development at Indian Institute of Management (IIM), Lucknow.

-    160 participants have attended a specially designed program on "Ethics in Public Governance" through IC Centre for governance in Panchgani, Maharastra.

-    2 weeks training on land acquisition and R&R was imparted to 37 participants under the LARR program organized by Administrative Staff College of India (ASCI), Hyderabad.

-    44 senior executives attended training programs on "Developing Strategic Attributes in Evolving Business Scenario" at LBSNAA, Mussoorie.

26.2    Skill India Mission of Govt. of India:-

CIL is also committed to support the Skill India Mission of Govt. of India. Achievements till date in this area are given below:- Training and assessment have been done for 35,253 own employees of CIL to bring them in line with NSDC Qualifications.

-    4700 contract workers engaged in CIL operations have been trained and certified by NSDC.

-    574 newly inducted employees of WCL were imparted training in line with NSDC Qualification and are currently engaged in WCL

-    Fresh Skilling, under NSQF aligned training programs, was imparted to 1,394 youth and women from operational areas of CIL, out of whom 706 persons have been placed in different organizations.

26.3    Recruitment

During the financial year 2017-18, CIL has inducted fresh talent into the organization at the entry level, 1143 Management Trainees were selected through direct recruitment. They have been imparted induction training and posted to different Subsidiaries based on manpower requirement.

27.    MANPOWER

27.1    The total manpower of the Company including its subsidiaries as on 31.03.2018 is 2,98,757 against 3,10,016 as on 31.03.2017. Subsidiary company wise position of manpower is disclosed in Annexure 19.

27.2    The presidential directives for Scheduled Caste/Scheduled Tribes/OBC have been implemented in all the subsidiaries/units of Coal India Limited.

The representation of SC/ST employees in total manpower of CIL and its Subsidiary Companies as on 01.01.2016, 01.01.2017 and 01.01.2018 is given below :-

As on

Total Manpower

Scheduled Caste

Scheduled Tribe

   

Nos.

Percentage

Nos.

Percentage

1.1.2016

326032

70502

21.62

39669

12.17

1.1.2017

313809

70513

22.47

39721

12.66

1.1.2018

302006

57761

19.13

41373

13.70

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 levels and Subsidiary (HQ) levels continued to function normally. Meetings of Apex JCC were held at regular intervals at CIL.

Strikes and Bandhs:

During 2017-18, no Strike took place in the Subsidiaries of CIL. There were 6 Bandh called by regional parties in the area of operation of subsidiary companies viz. MCL, CCL & CMPDIL, where normal working was affected.

Subsidiary wise details of strikes, man-days lost and production lost and other incidents for the year 2016-1 7 and 2017-18 are furnished in Annexure 19.

The salient features of the "10th Wage Agreement for CIL and SCCL" are as follows:-

1.    The periodicity of the 10th Wage Agreement shall be for 5 (five) years w.e.f. 01.07.2016

2.    Minimum Guaranteed Benefit (MGB) shall be 20% of the total emolument (Basic + VDA + SDA + Attendance Bonus) as on 30.06.2016.

3.    Minimum Basic enhanced from ' 15712.62 per Month to ' 26292.97 Per Month w.e.f. 01.07.2016.

4.    Special Allowance shall be paid @ 4% of revised Basic as on 01.07.2016 and frozen in absolute amount for the entire period of 10th Wage Agreement.

5.    Annual increment @ 3% on progressive basis.

6.    Underground Allowance shall be 9% (in case of Assam-10.5%) of Revised Basic as on 01.07.2016 and amount so arrived at will be frozen for the entire period of 10th Wage Agreement.

7.    Travel assistance amounting to ' 8000/- and ' 2,000/- shall be paid for visiting Home Town and 'Bharat Bhraman', respectively once in a block of 4 Years. 01.07.2016.

8.    House Rent Allowance (other than Urban Areas i.e. Coalfields Areas) shall be paid @ 2% of the revised notional Basic as on 01.07.2016 and be frozen in absolute amount for the entire period of 10th Wage Agreement. The revised HRA will be paid w.e.f. 01.10.201 7.

9.    To sustain the corpus of CMPS 1998, JBCCI has recommended that both the employee as well as employer, shall contribute equally i.e. 7% of Revised Basic & VDA, after subsuming the existing percentage of contribution. The deduction shall be made w.e.f. 01/10/201 7. It will be funded subject to the approval of BoT/CMPFO/GoI.

10.    Regarding Contributory Post Retirement Medicare Scheme for Non-Executives (CPRMS-NE), an amount of ' 40,000/- shall be contributed by the employees on roll as on 01/07/2016 as a membership contribution and Management shall contribute ' 18,000/- per member w.e.f. 01/07/2016. In respect of employees, who were separated from the services prior to 01.07.2016, no contribution shall be made by the Management. However, these employees (separated prior to 01.07.2016) can join the scheme before 31.12.201 7 by making a contribution of ' 40,000/-. The scheme will be reviewed after two years and the benefit under the scheme shall be modified, if required.

29. EMPLOYEES' WELFARE AND SOCIAL SECURITY SCHEMES

1)    HOUSING :

Company has its own housing establishments with basic facilities near its mines. Presently housing satisfaction of employees has reached 100% in the mining areas.

2)    WATER SUPPLY :

As against 2.27 Lakhs population consisting of employees and their families having access to potable water at the time of Nationalization in 1973, presently a populace of 19.62 lakhs (100%) has been covered under water supply scheme.

3)    MEDICAL FACILITIES :

Coal India Ltd and its subsidiaries are extending medical facilities to its employees and their families through various medical establishments, companies run Dispensary level to the Central and Apex Hospitals in different parts of the coalfields.

There are 80 Hospitals with 4938 Beds, 376 Dispensaries, 541 Ambulance and 1150 Doctors including Specialists in CIL and its subsidiaries to provide medical services to the employees. In addition, arrangements have been made for referral to reputed hospitals for treatment not available in company hospitals.

Moreover, medical facilities are also provided to the inhabitants residing in and around mines premises of the subsidiary companies of CIL.

4)    EDUCATIONAL FACILITIES :

Subsidiary companies have entered into MoU with DAV, DPS, Kendriya Vidyalaya etc. to provide better educational facility to the employees wards and financial assistance by way of deficit grant and infrastructure facilities are provided to these schools.

-    Coal India Scholarship Scheme

In order to encourage the children 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 condition.

-    In addition, facility for Reimbursement of tuition fees and Hostel Charge for studying in Government Engg. & Medical College for Financial year 2017-2018 is also extended to the children of wage board employees. The details are disclosed in Annexure 20.

5)    Statutory Welfare Measures:-

In terms of provisions of the Mines Act 1952 and Rules and Regulations framed there-under, subsidiaries of Coal India Limited are maintaining required statutory welfare facilities like Canteens, Rest-rooms, Drinking water facility etc. at mining premises for use by both regular and contractor workers.

6)    Non-statutory Welfare Measures:-Co-operative Stores and Credit Societies:

In order to supply essential commodities and consumer goods at a lesser cost in the Collieries, 16 Central Co-operatives and 99 Primary Co-operative Stores are functioning in the Coalfield areas of CIL. In addition, 158 Co-operative Credit Societies are also functioning in the Coal Companies.

7)    Banking Facilities:-

The Management of Coal Companies are providing infrastructure facilities to the various Nationalized Banks for opening their Branches and Extension Counters in the Coalfields for the benefit of their workers. Workers are educated to draw their salaries through 427 Bank Branches and 48 Bank Extension Counters and they are also encouraged to practice thrift for the benefit of their families.

8)    Sports:-

A sports policy of CIL and its subsidiaries was approved by CIL Board in its 296th Meeting held on 25th March,2013 and accordingly Coal India Sports Promotion Association (CISPA) has been registered under West Bengal Societies Registration Act, 1961. CISPA has undertaken several sports activities at National and International Levels.

9)    Welfare, Development and Empowerment of Women

The company extends active support to the forum of Women in Public Sector (WIPS). WIPS at various subsidiaries and CIL(HQ) undertake various activities which include welfare activities, training & development activities, seminars, cultural programmes, industrial awareness visits, health awareness programme etc for the WIPS members, women workers, their family members.

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. In recent years, the WIPS cell have done commendable work in reaching out to the grass root level women employees, empowering training and uplifting their morale by recognizing outstanding achievement, recognizing and honoring the exceptional talent. CIL was awarded second prize under Best Enterprise Award (Maharatna Category) in 201 718 by WIPS

10)    Special Cash Award:-

During 201 7-18, an amount of ' 1,46,000/- has been given as Special Cash Award to 26 meritorious children of employees of CIL(Hqrs.), Kolkata Desk Offices of subsidiary companies @ '7,000/- for 08 (Eight) students who have secured 90% or above marks in the Class-XII Board level examination and @'5,000/- for 18(Eighteen) students who have secured 90% or above marks in the Class-X Board level examination.

11)    Recreational facilities:-

At present eight Holiday homes are being maintained for the welfare of CIL employees and their families.

(a)

Puri

(b)

Digha

(c)

Goa

(d)

Manali

(e)

Katra

(f)

Ajmer

(g)

Darjeeling

(h)

Haridwar

12) CIL Welfare Board :-

Coal India Welfare Board is the decision making forum regarding welfare policies for betterment and improvement of living condition of employees of the Company.

The members of CIL welfare board comprising Central Trade Union and Managements representatives meet regularly to discuss the welfare measures and review the implementation of different welfare schemes. The meetings of the Welfare board are being conducted regularly.

30.    TREE PLANTATION / AFFORESTATION

Plantation and Green belt are developed through extensive tree plantation programme every year by the subsidiaries of Coal India Ltd. Avenue plantation, plantation on the OB dumps, plantation in and around mines, residential colonies, and available government land is undertaken in the existing as well as the new projects.

The subsidiaries of CIL have planted around 19.9 lakh saplings during 2017-18 in an area covering 821.52 Ha., Since inception, subsidiary companies of CIL have planted 96 million plants covering an area over 38378 Ha. till March 2018.

Furthermore, subsidiaries of CIL have planted 3.3 lakh saplings in an area of 277.3 Ha in Government land in association with State Forest Divisions during 2017-18.

31.    PROGRESSIVE USE OF HINDI.

Keeping abreast with the spirit of the constitution of India, Coal India Limited (CIL) continued its efforts to propagate and spread the progressive use of Official Language. The company is committed to implement the provisions of the Official Languages Act, Rules and Regulations. For this purpose, structured periodical meetings and reviews are done regularly by the top officials. A brief description of the works done during the year under review towards implementation of Rajbhasha is appended below:-

In total 4 Hindi workshops were organized regularly with a view to create working atmosphere for working in Rajbhasha and to combat hesitation of employees to work in Hindi. During the year, 111 employees participated in such workshops which helped to boost their knowledge in doing regular Official works in hindi.

In the presence of Hon'ble Governor Shri Kesharinath Tripathi, West Bengal, on 12.08.2017, half-yearly meeting cum Rajbhasha Conference of Town Official Language Implementation Committee (PSUs), Kolkata was successfully concluded at the auditorium of Coal India Headquarters. Along with this, in order to promote use of Hindi as Official Language, 'Babuji's Passbook' drama was successfully staged on 12.08.201 7 in CIL auditorium in the presence of large number of employees and their families.

With an aim to promote Official language and to foster interest in Official Language among officers and employees, a half-yearly Hindi Magazine namely "Koyla Darpan" is being published from Coal India Headquarters. During the year 2017-18, its third and fourth issue have been published. The purpose of publishing the magazine is not only to showcase the activities of CIL but to provide a platform for nurturing creative potential of employees.

Like past years, in September 2017, with a view to create conducive atmosphere for working in Hindi and accelerating the use of Hindi as Official Language among officials, 'Hindi Fortnight' was observed in all offices of Coal India Ltd. During the fortnight various Hindi Competitions such as noting and drafting, self-writing, dictation, translation, typing and speech etc. competitions were organized where a large numbers of employees participated enthusiastically. The winners were awarded with Cash prizes & Certificates. All these events help in creating consciousness among employees to use Rajbhasha in official Work. It is notable that Regional Sales Office, CIL situated at different cities were granted sufficient fund to celebrate Hindi Diwas & Hindi week/fortnight as per the practice.

During the year as a new initiative, translation competition is being organized every two months to increase the knowledge of Hindi in the office work among the officials. Apart from this, in order to fulfill the assurances given to the Parliamentary Official Language Committee during the inspection of CIL on 18.01.201 7, 1000 pages of contents available in English on CIL's website have been translated into Hindi and uploaded to the website in the 1st phase. The balance work of 2nd phase has also started and are likely to be completed by year end.

To smoothen working in hindi, supportive literature and dictionaries were provided to the departments as and when required. 'Today's Word' and 'Today's Thought' are displayed on all the signages at the New Office Complex, Rajarhat.

Coal India always lays emphasis on imparting training of Hindi Language under Hindi teaching scheme of Govt. of India by nominating the employees in Hindi Praveen & Pragya classes. During the year 2017, ten (10) employees were given training in Hindi Praveen and Pragya classes. Further, in session started from January 2018, Sixteen (16) employees have been nominated in Hindi Praveen class for attaining the working knowledge of Hindi.

Inspection of offices is a part of the strategy for implementation of official language in company's works. During the year, Officials of Rajbhasha department, CIL (HQ) reviewed the status of implementation of the Official Language in RSO Mumbai & Chennai, and offices of CCL, CMPDIL and NEC and suggested remedial measures.

Recognizing such praiseworthy works of CIL, during the year, CIL was conferred the following Awards:-

A)    1st Prize of TOLIC (PSUs), Kolkata : Under the Rajbhasha Award Scheme of the Govt. of India, on 12.08.2017, Honourable Governor of West Bengal Shri Kesharinath Tripathi awarded TOLIC (PSUs), Kolkata Shield - 1st Prize to Coal India Ltd. in the Corporate Offices category for best implementation of Official Language Policy of the Union.

B)    Award to CIL's Hindi magazine 'Koyla Darpan' : On 12.08.201 7, Coal India headquarters' Hindi magazine 'Koyla Darpan' was awarded 3rd prize in the House Magazine category by TOLIC (PSUs), Kolkata.

32. VIGILANCE SETUP

The anti-corruption activities in CIL and its Subsidiary Companies have been institutionalized by setting up Vigilance Departments headed by a Chief Vigilance Officer (CVO), appointed by the Govt. of India in consultation with Central Vigilance Commission (CVC) on tenure basis, drawn from various government services.

During the year 2017-18, 38 Intensive Examination of Works/Contracts (Major works) were undertaken by CIL(HQ) and its subsidiary companies. In addition,302 Surprise checks were carried out. Besides, 60 Departmental Inquiries were disposed of which resulted in punitive action against 324 officials. Such examinations/investigations have resulted into initiation of various system improvement measures.

As per directives of Central Vigilance Commission, Vigilance Awareness Week - 2017 has been observed in Coal India Limited, IICM- Ranchi, North Eastern Coalfields-Margherita & Regional Sales Offices across the country besides all the Subsidiary Companies w.e.f. 30.10.2017 TO 04.11.2017 emphasizing the theme of "My Vision- Corruption Free India".

During the week, various activities in order to generate awareness, educate and discuss transparency among officials/stake holders as well as general public to arrest the root cause & threat of corruption and to promote good governance were organized.

1.    Inauguration -

The Vigilance Awareness Week commenced with the administration of Pledge to the employees by Shri C K Dey, Director (Finance), CIL while inaugurating the week on 30th October 2017.

2.    Wide Publicity -

-    1000 pamphlets distributed to CIL HQ Employees, Visitors, Contractual Workers/ Drivers and Vendors with Vigilance Message and they were requested to take e-pledge. Throughout the week 6 e-posters displayed in all the digital signage in CIL HQ.

-    The posters/banners/pamphlet/canter/ 2D gate specially designed for VAW-2017 and events organized during the week has been uploaded in Company's official Facebook page. Also the same has been posted in CVO, CIL and CIL official twitter account.

-    40 banners of size 5ft x 4ft has been displayed in prominent places across Kolkata.

-    100 Posters with Anticorruption and Vigilance Awareness message displayed across Kolkata in public places.

-    Through News Papers in 10000 Households, Shops and Offices in Salt-lake and Ultadanga Area. Also 5000 pamphlet with 2018 calendar distributed to citizens in public places and schools/colleges etc.

-    SMS- 19000 SMS through NIC email have been generated to employees of CIL, IICM, NEC, RSOs & subsidiaries with Vigilance quotes and with request to take e-pledge. One lakh SMS blast with anti-corruption message has been shared through BSNL across Kolkata.

-    Radio Jingle - Two Radio Jingle both in English and Bengali telecasted in FM Rainbow, AIR in West Bengal (Kolkata and outskirts) throughout VAW-2017 (30.10.17 to 04.11.17).

3.    Employees Competitions -

i.    Slogan Competition for Employees of CIL HQ on TOPIC- "MY VISION CORRUPTION FREE INDIA".

ii.    Essay Competition for Employees of CIL HQ on TOPIC- "DIGITIZATION: A PATH TOWARDS CORRUPTION FREE INDIA".

iii.    Quiz Competition for Employees of CIL HQ on issues in Vigilance, CVC and other Anti-corruption Laws, Policies, manuals and guidelines of CIL.

iv.    System Improvement/New Initiatives Competition for Employees at CIL HQ.

v.    Public Speaking Competition for Employees of CIL HQ on topic - "DEMONETIZATION: A PILL TO KILL THE DEMON OF CORRUPTION".

4.    Competitions for Wards and Spouses of Employees -

i.    Elocution Competition for wards of Employees of CIL HQ studying in Class IX to X on topic "ETHICAL EDUCATION IS GOOD INSTRUMENT TO CURB CORRUPTION".

ii.    Essay Competition for Spouses of Employees of CIL HQ on TOPIC- "ROLE OF FAMILY IN ERADICATING CORRUPTION".

5.    Training Program for Junior Level Managers of CIL -

A one day orientation program for newly recruited Junior Level Managers of CIL was organized in two batches focusing on Vigilance

Administration in PSUs, Conduct, Discipline & Appeal Rules of CIL and Common Irregularities.

6.    Workshops / Sensitization programmes - 500 Nos of Vigilance Case Studies Vol-3 unveiled during the Vigilance Awareness Week Valedictory Function for distribution across CIL & Subsidiaries. The soft copy of the book was also uploaded in CIL Website.

7.    Organization website

Organization website has been used to propagate the messages of CVC and encouraging citizens to take e-pledge.

8.    Stakeholders Meet -

1.    Stakeholders Meet organized with Vendors and Customers on 02.11.201 7 at CIL HQ to redress their issue.

2.    Stake Holder's Online feedback survey conducted through CIL Website.

9.    Workshops / Sensitization programmes

1.    Motivational Speech of Shri P S Rathore, Motivational Speaker, Life Coach and Author was organized on 01.11.201 7 at 12 Noon. The event was attended by all employees of CIL HQ and their family members.

2.    Seminar on CVC theme "My Vision- Corruption Free India", Concluding Ceremony and Prize distribution to winners of event organized during the week on 07.11.2017.

3.    Morning prayer "Itni Shakti Hame Dena Data..." was started from 30.10.2017 in the reception area. The prayer is held daily at the reception area at 9.45 AM.

Implemented Preventive Vigilance/ System Improvement

1.    In case of Road Sales, loading by Pay Loaders should be stopped and loading of Coal on Road Sale Vehicles through bunker/hopper to be ensured. In the existing CHPs, possibility of introducing direct truck loading to be explored and action for installation of mini CHP near suitable place for truck loading is to be ensured.

2.    Modification of proven-ness criteria for procurement of steel cogs/props & other fabricated items for getting competitive bidding.

3.    SOP for implementation of different IT initiatives issued after approval of Chairman,CIL

- Further System improvement suggestions :

System improvement suggestions were made in many areas:

a.    Formulation of a standard NIT for recruitment process through outsourced agency

b.    System improvement for procurement of Self Contained Breathing Apparatus.

c.    Rationalization for OBR measurement & subsequent finalization of report by CMPDI and use of Drone UAV for measurement of large coal stock and OBR .

d.    Use of UAV & space technology for prevention of Coal pilferage & illegal mining and monitoring of environment, plantation, vegetation & water bodies.

e.    Issue of Penalty by DA only as specified in CDA Rules under clause no. 27.0. (Order issued by CMD,CIL vide no. CIL/CH/44/475 dt. 16.03.17.)

f.    In OB contracts, review of Additional Performance Security clause and specific time limit for submission of Performance Guaranty and Additional Performance Security and such other provisions may also be incorporated in manual.

g.    Vendor development programme may be undertaken through mechanism as laid down in Purchase Manual to increase competition.

- System Improvement Studies - Studies were taken in the following areas

Sl.

Subject of Study

1

Measurement of OB and Coal in outsourced patches

2

CSR Policy of CIL and monitoring of projects.

3

Inventory of Land Records

4

RDA initiated on CBI Reports

5

E-surveillance through VTS, CCTV, Weigh-Bridge connectivity, RFID & other IT initiatives.

6

Implementation of Bill tracking system.

7

BG receipt and verification through SMFS

8

Complaint handling System.

9

Procurement policy at CIL & subsidiaries and Standardization of NITs .

10

Recruitment process in CIL & subsidiaries.

11

Policy for compassionate appointment of medical unfit cases.

33.    PARTICULARS OF EMPLOYEES

No employee received remuneration either equal to or in excess of the limits prescribed under Rule 5(2) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 during 2017-18. Details of Rule 5(1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 on disclosure in the Board Report with reference to remuneration of managerial personnel of Top 10 employees are annexed to the Report. (Annexure 21).

34.    BOARD OF DIRECTORS

Shri Anil Kumar Jha was appointed as Chairman cum Managing Director (CMD) w.e.f. 18.05.2018. Shri Suresh Kumar, Addl. Secretary, MoC was holding an Additional Charge of CMD from 23.04.18 till 18.05.18 and Shri Gopal Singh,CMD,CCL was holding an Additional Charge of CMD from 01.09.17 till 20.04.2018. Shri S. Bhattacharya was Chairman cum Managing Director till 31.08.17. Shri C.K. Dey Director (Finance) and Shri S.N.Prasad, Director (Marketing)were on the Board throughout the year. Shri Binay Dayal was appointed as Director (Technical) w.e.f. 11.10.2017. Shri S. Saran, CMD, CMPDIL was holding an additional charge of Director (Technical), CIL from 31.10.2016 till

10.10.2017. Shri R.P. Srivastava assumed the charge of Director (P &IR) from 31st Jan'18. Shri R.R.Mishra, CMD, WCL was holding an additional charge of Director (Personnel) from 19.06.17 till 30.01.18. Shri S N Prasad, Director (Marketing) was holding an additional charge of Director (Personnel) from 31.03.17 till 18.06.17.

Shri R.K.Sinha, Joint Secretary, MoC continued throughout the year. Mrs Reena Sinha Puri, JS &FA, MOC was appointed as an official part time Director vice Sri Vivek Bharadwaj from 9th Jun,17 and continued during the year.

Ms. Loretta Mary Vas, Dr S.B. Agnihotri, Dr D.C. Panigrahi, Dr. Khanindra Pathak and Shri Vinod Jain were appointed as Independent Directors on the Board on 17.11.15 and continued throughout the year. Shri V.K.Thakral and Shri B.L.Gajipara were appointed Independent Directors on the Board w.e.f. 06.09.17 and 22.09.17 respectively.

Shri R.R. Mishra, CMD, WCL and Shri S. Saran, CMD, CMPDIL continued throughout the year as permanent invitees. Shri A.K.Gupta Addl. Member (Traffic transportation), Railway Board was appointed as permanent invitee from 05.08.2016 and continued till 31.01.18. On his superannuation, Shri Anurag has been appointed as permanent Invitee from 19th Jun'18.

Your Directors wish to place on record their deep sense of appreciation for the valuable guidance and services rendered by the directors during their tenure, who ceased to be the Directors during the year.

In terms of Article 39(j) of the Articles of Association of the Company, one third of retiring Directors are liable to retire by rotation shall retire at the ensuing Annual General Meeting and they are eligible for reappointment.

The Board of Directors held 22 meetings during the year 2017-18.

35.    Composition of Audit Committee

CIL in pursuance of excellence in corporate governance formed an Audit Committee of its Board of Directors w.e.f. 20-07-2001 and and the present Audit Committee was re-constituted by the Board in its 349th meeting held on 28th Oct'17, consisted of four Independent Directors, one Functional Director, one Government Nominee Director and one permanent invitee. Details are disclosed in Corporate Governance Report under point number 3.1.

36.    Composition of CSR Committee

Details are disclosed in Corporate Governance Report under point number 3.6.

37.    Declaration given by independent directors under sub-section (6) of Section 149.

The following independent directors have given their consent during 201 7-18 that they meet the criteria of independence as stipulated in subsection (6) of Section 149 of the Companies Act 2013.

i.    Ms. Loretta M Vas

ii.    Dr. S.B.Agnihotri

iii.    Dr. D.C.Panigarhi

iv.    Prof. Khanindra Pathak

v.    Shri Vinod Jain

vi.    Shri V.K.Thakral

vii.    Shri B.L.Gajipara

38.    Reappointment of Independent Directors- Section 149(10)

No Director was reappointed in terms of section 149(10) of the Companies Act 2013.

39.    Recommendation of Audit Committee by the Board.

All the recommendations made by Audit Committee were accepted by the Board.

40.    Company's policy on directors 'appointment and remuneration including criteria for determining qualifications, positive attributes, independence of a director and other matters provided under sub-section (3) of section 178.

MCA vide Notification dated 5th June'2015 has exempted the above for Government companies.

41.    Remuneration policy of directors, KMPs and Senior Management - Section 178(4).

MCA vide Notification dated 5th June'2015 has exempted the above for directors of Government companies.

42.    A statement indicating the manner in which formal annual evaluation has been made by the Board of its own performance and that of its committees and individual directors.

MCA vide Notification dated 5th June'2015 has exempted the above for Government companies.

43.    Contracts or Arrangements with Related Parties

Related party transactions made with the subsidiary companies and that all such transactions were exempted under Regulation 23(5)(a) and (b) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 being transactions between two government companies and transactions entered between a holding and its wholly owned subsidiaries whose accounts are consolidated with holding company and placed before the shareholders at the general meeting for approval. However, the remuneration paid to Key Managerial Personnel is being disclosed separately in point no VI of Annexure 22.

44.    Loan, guarantees or investments by a company under section 186 of the Act

Loan, guarantees and investments made by Coal India Limited in terms of Section 186 of the Companies Act 2013 is enclosed in Annexure 23.

45.    Familiarization programme of Board Members.

Board of Directors are fully briefed on all business related matters, associated risk, new initiatives etc. of the company. The Board of directors were also briefed about the provisions of Companies Act 2013, Prohibition of Insider Trading Regulations, 2015 and SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015. As per Regulation 25 of SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015, the listed entity shall familiarize the independent directors through various programmes about the listed entity, including the following:

(a)    Nature of the industry in which the listed entity operates;

(b)    Business model of the listed entity;

(c)    Roles, rights, responsibilities of independent directors; and

(d)    Any other relevant information.

As per regulation 46 of SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015 the details of the familiarization programmes is to be disclosed on the website of the company. The same is disclosed on company's website. In addition, Independent Directors were nominated to attend the trainings programmes organized by SCOPE and DPE.

https://www.coalindia.in/DesktopModules/DocumentList/documents/Familiarization_Programmes_imparted_ to_Independent_ Directo rs_fo r_201 7_18_04042018.pdf

46.    Sexual Harassment of Women at the Workplace

The company has in Place an Anti-Sexual Harassment Policy in line with the requirements of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints Committee (ICC) are working at every subsidiary and office of Coal India Limited to redress complaints regarding sexual harassment. All women employees (permanent, contractual, temporary, trainees) are covered under the said policy.

No sexual harassment complaint was received during the year 2017-18.

47.    DIRECTORS' RESPONSIBILITY STATEMENT

In terms of Section 134(3)(c) of the Companies Act, 2013, read with the Significant Accounting Policies at Note-33 and Additional Notes on Accounts at Note-34 forming part of:

1.    CIL (Standalone) Accounts

2.    CIL (Consolidated) Accounts It is confirmed that:

a)    In the preparation of the Annual Accounts, the applicable Accounting Standards have been followed and that no material departures have been made from the same;

b)    The Accounting Policies have been selected and applied consistently and judgements and estimates made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and profit & loss of the company for that period;

c)    Proper and sufficient care have been taken for maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d)    The Annual Accounts have been prepared on a going concern basis;

e)    Internal Financial Controls have been laid down and that such controls are adequate and were operating effectively during the year ended 31st March'2018.

f)    Proper systems have been devised to ensure compliance with the provisions of all applicable laws and such systems were adequate and operating effectively.

For CIL (Consolidated) Accounts, such confirmation is based on confirmation obtained from eight Indian subsidiaries of CIL viz: Eastern Coalfields Limited, Bharat Coking Coal Limited, Central Coalfields Limited (consolidated), Northern Coalfields Limited, Western Coalfields Limited, Mahanadi Coalfields Limited (consolidated), South Eastern Coalfields Limited (consolidated) and Central Mine Planning & Design Institute Limited. However, for the overseas subsidiary viz. Coal India Africana Limitada, which was incorporated under Mozambique Commercial Code and for Joint Ventures viz. International Coal Ventures Private Limited, CIL NTPC Urja Private Limited, Hindustan Urvarak & Rasayan Limited and Talcher Fertilizers Limited where CIL is not the majority shareholder, such confirmation have not been obtained.

48.    ACCOUNTS OF THE SUBSIDIARIES

The statement containing the salient features of the financial statements of a company's subsidiaries, associate companies and joint ventures under the first proviso to sub-section (3) of section 129 of Companies Act, 2013 is enclosed as AOC 1 in Annexure 24. In pursuance of Section 136(2) of the Companies Act, 2013, the Annual Accounts of the subsidiary companies shall be made available to the shareholders seeking such information.

49.    COST AUDIT

M/s Balwinder Singh & Associates conducted the Cost Audit of your company for the year 2016-1 7 and the Cost Audit Report was approved by the Board of Directors in their 347st meeting held on 25th Sep 201 7. The Cost Audit Report did not contain any adverse observation/comment or qualification from the Cost Auditor. The above report was filed in XBRL mode with MCA website on 25th September 2017.

M/s Balwinder Singh & Associates were reappointed as Cost auditor for CIL Standalone for the year 2017-18. E-form CRA-2 has been filed with MCA portal vide SRN G53909982 dated 25.09.2017.

50.    SECRETARIAL AUDIT

In pursuance to Section 204 of Companies Act 2013, company had conducted Secretarial Audit for the year 2017-18 by a practicing Company Secretary M/s Vinod Kothari & Co, Practising Company Secretaries. Their appointment was approved in the 356th Board meeting held on 31st Jan'18. Secretarial Audit Report under Section 204 of Companies Act 2013 and the observations of Secretarial Auditor and Management Explanation are enclosed in Annexure 25.

51.    RISK MANAGEMENT POLICY

The Board of CIL approved Risk Management Charter and Risk Register to build up a strong Risk Management Culture within CIL in achieving company's goals and objectives. The entity level Risk Assessment includes:

i)    Strategic Risk.

ii)    Operational Risk.

iii)    Financial Risk.

iv)    Compliance Risk.

v)    Project Related Risk.

vi)    Support System Risk.

As per the Risk Register, different risks were identified for CIL and its Subsidiaries and Risk Owner and Risk Mitigation Plan Owner were nominated for each risk identified to ensure continuous monitoring and mitigation thereof.

A Consulting Agency has been engaged for implementing the governance process designed in the Risk Management Framework at CIL and its Subsidiary Companies. The Consultant will cover all aspects and issues regarding Risk Management and ensure achievement of the objectives of i) Updated Risk Registers for CIL and its Subsidiaries ii) Updated Risk That Matters iii) Risk Mitigation Plan and implementation.

The Agency has completed Updated Risk Register, Prioritization of Risk, Risk that Matters for all the Subsidiaries of CIL. They had also completed the details of the Key Risks which are common across the Subsidiaries and specific to one or more Subsidiaries. Risk Mitigation Plan is under finalization.

52.    WEBLINK

The following policies may be accessed on the Company's website as under:-

1.    Corporate Social Responsibility Policy: https://www.coalindia.in/DesktopModules/DocumentList/documents/CIL_CSR_Policy_New_Companies_ Act_2013_05022016.pdf

2.    Vigil Mechanism: https://www.coalindia.in/DesktopModules/DocumentList/documents/Office_Order_No.57_dt_08092011_-_ Coal_India_Whistle_Blower_Policy_2011.pdf

3.    Policy for determining Material Subsidiary:

https://www.coalindia.in/DesktopModules/DocumentList/documents/POLICY_FOR_DETERMINING_MATERIAL_

SUBSIDIARIES_21032015.pdf

4.    Related Party Transaction Policy:

https://www.coalindia.in/DesktopModules/DocumentList/documents/Related_Party_Transaction_ Policy'_01122014(1). PDF

5.    Policy on determination of Materiality under SEBI(LODR) Regulations, 2015

https://www.coalindia.in/DesktopModules/DocumentList/documents/Policy_on_determination_ of%20_Materiality_under_SEBI_ LODR_%20Regulations_2015_0304201 7.PDF

6.    Policy on Preservation of documents including Archival Policy under SEBI(LODR) Regulations 2015

https://www.coalindia.in/DesktopModules/DocumentList/documents/Policy_on_Preservation_of_documents_

including_Archival_Policy_under_SEBI_LODR_Regulations_2015_17052017.pdf

7.    Dividend Distribution Policy under SEBI (LODR) Regulations 2015

https://www.coalindia.in/DesktopModules/DocumentList/documents/Dividend_Distribution_policy_of_

Coal_India_Limited_25102017.pdf

53.    COMPANY CONFIRMS THE FOLLOWING:-

1.    None of the Directors are disqualified for appointment as per Section 164 of the Companies Act'2013.

2.    Company has not issued any Equity shares with differential voting rights, Sweat Equity shares and ESOP.

3.    CIL Shares were issued in IPO in October'2010. Hence, Unclaimed IPO Refund, Unclaimed Interim Dividend of 2010-11 alongwith the Shares on which dividend have not been claimed for Seven consecutive years were transferred to IEPF Authority as stipulated in Companies Act 2013.

4.    No Statutory, Secretarial, and Cost Auditors had resigned during the year 201 7-18.

5.    No relative of director was appointed to place of profit.

6.    As per Regulation 32(4) of SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015 deviation of Proceeds of Public issue is not applicable to the company.

7.    There is no deposit covered under Chapter V of Companies Act 2013.

8.    There is no deposit, which is not under compliance of Chapter V of Companies Act 2013.

9.    There is no change in the nature of business.

10.    No Director is in receipt of any commission from the subsidiary companies in which he is a director.

11.    Applicable Secretarial Standards, i.e. SS-1 and SS-2, relating to 'Meetings of the Board of Directors' and 'General Meetings', respectively, have been duly followed by the Company.

54.    ADDITIONAL INFORMATION

1.    Details in respect of frauds reported by Auditors under section 143(12) other than those which are reportable to the Central Government. :

No such reported frauds as per Audit Report of Standalone as well as Consolidated Accounts.

2.    Material changes and commitments, if any, affecting the financial position of the company which have occurred between the end of the FY and the date of the report :

No such material changes and commitments occurred between the end of the FY and the date of the report which may affect the Standalone as well as consolidated financial position of the company.

3.    The names of companies which have become or ceased to be its subsidiaries, joint ventures or associate companies during the year.

During the financial year no subsidiaries, Joint Ventures or associates have become or ceased to be subsidiaries/Joint Ventures or associates.

55.    ACKNOWLEDGEMENT:

The Board of Directors of your Company wishes to record their deep sense of appreciation for the sincere efforts put in by the employees of the Company and Trade Unions. Your Directors also gratefully acknowledges the co-operation, support and guidance extended to the Company by various Ministries of the Government of India in general and Ministry of Coal in particular, besides the State Governments. Your Directors also acknowledge with thanks the assistance and guidance rendered by Statutory Auditors, the Comptroller and Auditor General of India and Registrar of Companies, West Bengal, Secretarial Auditor and Cost Auditor and wishes to place on record their sincere thanks to Consumers for their continued patronage.

56.    ADDENDA

The following are annexed:-

i)    Pre-tax Profit of CIL & subsidiaries for 2017-18 vis-a-vis 2016-17 (Annexure 1).

ii)    Pre-tax Profit of CIL & subsidiaries without considering the impact of pay revision and impact of increase in Gratuity Ceiling Limit for 2017-18 vis-a-vis 2016-17 (Annexure 1A).

iii)    Subsidiary wise details of Dividend income of CIL Standalone (Annexure 2).

iv)    The comments of the Comptroller and Auditor General of India on Standalone Financial Statements of Coal India Limited (Annexure 3).

v)    Auditors Report on the Standalone Financial Statements for the year ended 31st March, 2018 including Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act") [Annexure 3(A)].

vi)    The comments of the Comptroller and Auditor General of India on Consolidated Financial Statements of Coal India Limited (Annexure 4).

vii)    Auditors Report on the Consolidated Financial Statements for the year ended 31st March, 2018 including Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act") [Annexure 4(A)].

viii)    Observations of Auditor on Standalone Financial Statements and Management Explanation. (Annexure 5)

ix)    Observations of Auditors on Consolidated Financial Statements and Management Explanation [Annexure 5(A)].

x)    Subsidiary wise Coal Off-take. (Annexure 6)

xi)    Sector-wise dispatch of coal & coal products. (Annexure 7)

xii)    Dispatches of coal and coal products by various modes. (Annexure 8)

xiii)    Wagon Loading Performance in 2017-18. (Annexure 9)

xiv)    Subsidiary wise details of Stock of Coal. (Annexure 10)

xv)    Subsidiary wise details of Trade Receivables. (Annexure 11)

xvi)    Subsidiary-wise payment of Royalty, Cess, Sales Tax, Stowing Excise Duty, Central Excise Duty, Clean Energy Cess, Entry Tax and Others. (Annexure 12)

xvii)    Subsidiary-wise Coking & Non-coking production, Production from underground and opencast mines. (Annexure 13) xviii) Subsidiary-wise Washed Coal (Coking) Production. (Annexure 13A)

xix)    Subsidiary wise Overburden Removal. (Annexure 13B).

xx)    Population of equipment. (Annexure 14)

xxi)    Subsidiary wise System Capacity Utilization. (Annexure 15).

xxii)    Project Implementation. (Annexure 16).

xxiii)    Subsidiary wise details of Capital Expenditure. (Annexure 17)

xxiv)    Salient features of continuous and sustained improvement in CIL's safety performance. (Annexure 18)

xxv)    Subsidiary wise position of manpower and strikes and bandhs. (Annexure 19)

xxvi)    Scholarship and Reimbursement of tuition fees and Hostel Charge and Grants sanctions to schools. (Annexure 20)

xxvii)    Disclosures under Rule 5(1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. (Annexure 21).

xxviii)    The extract of the annual return as provided under sub-section (3) of Section 92 in Form No. MGT.9 (Annexure 22).

xxix)    Loan and Advances, Guarantees, Investments made by the company under Section 186(4) of the Companies Act'2013 (Annexure 23).

xxx)    Statement pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014) as on 31st March, 2018. (Annexure 24).

xxxi)    Secretarial Audit Report under Section 204 of Companies Act 2013 and Observation of Secretarial Auditor & Management Explanation (Annexure 25).

xxxii)    Foreign Exchange Earning and Outgo under Rule 8 of Companies (Accounts) Rules 2014 (Annexure 26).

xxxiii)    Details about Research and Development of the Company (Annexure 27).

xxxiv)    Disclosure as per Section 135 of Companies Act 2013 on Corporate Social Responsibility (Annexure 28). xxxv) Significant and Material Orders passed by the Regulators or Courts. (Annexure 29).

xxxvi) Corporate Governance Report. (Annexure 30)

                                                     For and on behalf of the Board of Directors

                                                    sd/-

                                                    A.K.Jha

Kolkata,

7th August, 2018                         Chairman

                                                   (DIN-06645361)

 


Mar 31, 2017

Ladies and Gentlemen, The behalf of the Board of Directors, I have great pleasure in presenting to you, the 43rd Annual Report of Coal India Limited (CIL) and Audited Accounts for the year ended 31st March, 2017 together with the reports of Statutory Auditors and Comptroller and Auditor General of India thereon. Coal India Limited (CIL) is a 'Maharatna' company under the Ministry of Coal, Government of India with headquarters at Kolkata, West Bengal. CIL is the single largest coal producing company in the world and one of the largest corporate employers with manpower of 3,10,016 (as on 1st April, 2017). CIL operates through 82 mining areas spread over eight provincial states of India. Coal India Limited has 394 mines (as on 1st April, 2017) of which 193 are underground, 177 opencast and 24 mixed mines. CIL further operates 15 coal washeries, (12 coking coal and 3 non-coking coal) and also manages other establishments like workshops, hospitals, and so on. CIL has 27 training Institutes. Indian Institute of Coal Management (IICM) is an excellent training centre operates under CIL and imparts multidisciplinary management development programmes to the executives. Coal India's major consumers are Power and Steel sectors. Others include cement, fertilizer, brick kilns and a host of other industries. CIL has eight fully owned Indian subsidiary companies: - 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 is managed directly by CIL. Mahanadi Coalfields Limited, a subsidiary of Coal India Ltd is having four (4) Subsidiaries and one(1) Joint Venture, SECL has two(2) Subsidiaries and CCL has one (1) subsidiary. A) Subsidiaries of MCL 1. MJSJ Coal Ltd. MJSJ Coal Ltd was incorporated on 13th August, 2008 as a Joint Venture Company of MCL. MJSJ Coal Ltd has been formed for Gopalprasad OCP where MCL is having 60% shares, JSW Steel Limited and JSW Energy Limited having 11% share each and Shyam Metalics and Energy Ltd (formerly known as Shyam DRI Power Limited) and Jindal Stainless Limited having 9% shares each. The paid up Share Capital of MJSJ Coal Ltd as on 31st Mar”2017 was Rs.95.10 Crore. The Hon'ble Supreme Court of India in its judgement dated 25th Aug'14 and order dated 24th Sep'14 declared allocation of Utkal-A coal block allocated to MJSJ Coal Ltd. as illegal and has quashed the allocation. 2. MNH Shakti Ltd. MNH Shakti Ltd was incorporated on 16th July, 2008 as a Joint Venture Company of MCL. MNH Shakti Ltd has been formed for Talabaria OCP where MCL is having 70% share, Neyveli Lignite Corporation Ltd having 15% share and Hindalco Industries Ltd. having 15% share. The Paid up Share Capital of MNH Shakti Ltd as on 31st Mar”2017 was Rs.85.10 Crore. The Hon'ble Supreme Court of India in its judgement dated 25th Aug'14 and order dated 24th Sep'14 declared allocation of Talabira - II and Talabira - III coal blocks allocated to MNH Shakti Ltd. as illegal and has quashed the allocation. 3. Mahanadi Basin Power Limited. Another Company “Mahanadi Basin Power Limited”(MBPL) was incorporated on 2nd December, 2011 and certificate for commencement of business, issued by ROC on 6th Feb'2012. MBPL has been formed as an SPV with 100% shares held by Mahanadi Coalfields Ltd for power generation of 2x800 MW through Pit Head Power plant at Basundhara Coalfields. It is a wholly owned subsidiary of Mahanadi Coalfields Ltd (MCL) having its Registered Office at Bhubaneswar. The Paid-up Share Capital of Mahanadi Basin Power Limited as on 31st Mar'17 was Rs.5 lakh. 4. Mahanadi Coal Railway Limited Pursuant to MoU signed between IDCO, MCL and IRCON on 20th May, 2015, a Joint venture Company namely, Mahanadi Coal Railway Limited was formed on 31st August, 2015 with a equity participation in the ratio of 64:26:10 between MCL, IRCON and IDCO to build, construct, operate and maintain identified rail corridor projects including doubling, third line, traffic facility projects important for coal connectivity that are critical for evacuation of coal from mines, in the state of Odisha. The Share Capital of Mahanadi Coal Railway Limited as on 31st Mar'17 was Rs.5 Lakh. Neelanchal Power Transmission Company Private Limited -A joint venture of MCL MCL has ventured into Power Transmission Business in the State of Odisha for better utilisation of surplus funds along with development of infrastructure in the State of Odisha. Accordingly, on 8th January, 2013 another joint Venture Company namely Neelanchal Power Transmission Company Private Limited (NPTCPL) was incorporated in partnership with Odisha Power Transmission Company Ltd (OPTCL) having 50:50 equity participation by virtue of a Joint Venture Agreement. (B) Subsidiaries of SECL 1. M/s Chhattisgarh East Railway Ltd(CERL) CERL is a joint venture Company among South Eastern Coalfields Limited, M/s IRCON International Limited and Chhattisgarh State Industrial Development Corporation incorporated on 12th Mar'13 for construction of railway lines for evacuation of coal with 64% shareholding of SECL. During the year 2016-17, the Paid up Capital of the company increased from Rs.139.05 Crores to Rs.166.95 Crores and debt from Rs.150 Crores to Rs.300 crores. 2. M/s Chhattisgarh East- West Railway Ltd(CEWRL) CEWRL is a joint venture Company among South Eastern Coalfields Limited, M/s IRCON International Limited and Chhattisgarh State Industrial Development Corporation incorporated on 25th Mar'13 for construction of railway lines for evacuation of coal with 64% shareholding of SECL. During the year 2016-17, the Paid up Capital of the company increased from Rs.4.05 Crores to Rs.500 Crores and debt at Rs.75 Crores (C) Subsidiary of CCL Jharkhand Central Railway Limited is a Joint Venture Company among Central Coalfields Limited, M/s IRCON International Limited and Govt. of Jharkhand incorporated on 31st August' 2015 for evacuation of Coal in which CCL holds 64% shares. During the year 2016-17, the Authorised Capital of the company increased from Rs.5 Crores to Rs.100 Crores. The Project Implementation Agreement between JCRL and IRCON International Limited as project management & implementing agency was finalized. The Detailed Project Report has been deliberated in the JCRL Board meetings. IRCON has been directed for submission of modified DPR with various options considering the technical requirements and financial viability of the project. The investment decision shall be taken by JCRL Board after submission of final DPR by M/s IRCON with various options. 1. STATE OF AFFAIRS 1) Company & its subsidiaries produced 554.14 MT. of coal with a growth of 2.85% compared to the last year same period. 2) Company achieved an off-take of 543.32 MT. with a growth of 1.7% compared to the last year same period. 3) CIL has acheived a gross sales of Rs.1,22,294.46 crores, a landmark achievement. 4) Not a single power-utility was in critical or super-critical condition for want of coal during 2016-17 5) Due to the improved despatch and better quality of coal, import of coal to India had reduced during 2016-17. AWARDS RECEIVED DURING 2016-17 1. Sri S. Bhattacharya, Chairman, Coal India Limited was conferred with 'Best CEO -PSU' Award in the Sixth edition of the prestigious 'Forbes India Leadership Awards - 2016' in a function held on 8 November in Mumbai. 2. Sri S. Bhattacharya, Chairman, Coal India Limited was conferred with 'g-files Governance Award 2016', the award was presented, on 26th November 2016 in New Delhi, by Shri Chaudhary Birender Singh, Hon'ble Union Minister for Steel, Government of India and Shri Ram Bilas Sharma, Hon'ble Minister, Education and Tourism, Government of Haryana in an event. 3. CIL was conferred with the following awards: a. Coal & Coal Products by Dun & Bradstreet in 2017. b. Best Implementation of Corporate Social Responsibility by ABP News in 2017. c. Most Efficient & Fast Growing Maharatna by Dalal Street Investment Journal Award in Best Maharatna Category by Hindustan PSU Awards in 2016. d. Best CFO Award by Financial Express 2. FINANCIAL PERFORMANCE 2.1 Financial Results (CIL Consolidated) CIL is one of the largest profit making and tax & dividend paying enterprises in India. CIL and its subsidiaries have achieved an aggregate Pre-Tax Profit of Rs.14,433.71 crores for the year 2016-17 against a pre-tax profit of Rs.21439.80 crores for the year 2015-16. CIL as a group had achieved a post tax profit of Rs.9265.98 crores in 2016-17 compared to Rs.14266.78 crores in 2015-16. Total comprehensive income of Rs.9347.98 crores in 2016-17 as compared to Rs.14,561.19 crores in 2015-16 (excluding share of non-controlling interest of Rs.0.25 crore, previous year: Rs.0.04 crore). The subsidiary wise details of Pretax Profit of CIL are given in Annexure 1. Highlights of performance The highlights of performance of Coal India Limited Consolidated for the year 2016-17 compared to previous year are shown in the table below: PARTICULARS 2016-17 2015-16 Production of Coal (in million tonnes) 554.14 538.75* Off-take of Coal (in million tonnes) 543.32 534.50* Sales (Gross) (Rs./Crores) 122294.46 108147.54 Capital Employed (Rs/Crores) Note- 1 58428.87 67608.07 Capital Employed (Rs./Crores)-excluding capital work in progress and intangible assets under development 48063.28 61634.91 Net Worth (Rs./Crores) 24506.97 34814.98 Profit Before Tax (Rs./Crores) 14433.71 21439.80 Profit for the Period(Rs./Crores) 9265.98 14266.78 Total Comprehensive Income attributable to the Owners of the company(Rs./Crores) 9347.98 14561.19 PAT / Capital Employed (in %) 15.86 21.10 Profit before Tax / Net Worth (in %) 58.90 61.58 Profit after Tax / Net Worth (in %) 37.81 40.98 Earning Per Share (Rs.) (Considering Face Value of Rs.10 per share) 14.78 22.59 Dividend per Share (Rs.) (Considering Face Value of Rs.10 per share) 19.90 27.40 Coal Stock (Net) (in terms of No. of months Net Sales) 1.18 0.98 Trade Receivables (Net) (in terms of No of Months Gross Sales) 1.05 1.27 *Production and Offtake of Coal for FY 2016-17 includes 5.324 MT and 4.118MT (FY 2015-16 2.28 MT & 2.15 MT) of Gare Palma IV/2&3 Mine for which Coal India Ltd. has been appointed akin to a designated custodian w.e.f 01.04.2015(through SECL) Note-1: Capital employed = Gross Block of Fixed assets (including capital work in progress and intangible assets under development) less accumulated depreciation plus current assets minus current liabilities. Transfer to Reserves During the year 2016-17, a sum of Rs.510.75 crores was transferred to General Reserves out of CIL Consolidated profits and amount of Rs.3650 crores was utilized for buyback of shares. Above amount of Rs.510.75 crores includes transfer of Rs.8.01 Crores transferred out of CIL Standalone profits. 2.2 Dividend Income and Pay Outs (CIL Standalone) While the financial statements of both CIL Standalone and Consolidated are presented separately, only CIL Standalone is listed and relevant for dividend payment to its shareholders The dividend to its shareholders are paid out of CILs Standalone income, the major part of which constitutes the dividend income received from its four profit making subsidiaries i.e. CCL, NCL, SECL and MCL. The breakup of such dividend (Interim + Final) received and accounted for during the year from different subsidiaries are given in Annexure 2. During the year, CIL Standalone has paid a total dividend (by way of interim dividend) of Rs.12352.76 crores @ Rs.19.90 per share on 620,74,09,177 number of Equity Shares of Rs.10/- each fully paid up. Out of above total dividend, the share of Govt of India was Rs.9736.40 crores and for other shareholders, Rs.2616.36 crores. (In 2015-16 - Govt of India - Rs.13,784.86 crores and Other shareholders - Rs.3,521.98 crores) 2.3 Supplementary Audit of Financial Statements by Comptroller and Auditor General of India (C&AG) There are no comments issued by the office of the C&AG either on Standalone or Consolidated Financial Statements of the company for the year 2016-17 on supplementary audit conducted under section 143(6)(a)[and also read with Sec 129(4)] of the Companies Act, 2013. The comments on supplementary audit of Standalone and Consolidated Financial Statements are enclosed as Annexure 3 and Annexure 4 respectively. 2.4 Management Explanation on Statutory Auditor's Report The Statutory Auditors of the company have given an unqualified report [Annexure 3(A) and Annexure 4(A)] on the Standalone Financial Statements and Consolidated Financial Statements respectively of the company for the financial year 2016-17. However, they have drawn attention under 'Emphasis of Matter' on certain issues. These issues under 'Emphasis of Matter' along with observations of the Auditors elswhere in the annexures of the Audit Report are enclosed as Annexure 5 & Annexure 5(A) respectively with Management explanations thereto. 3. COAL MARKETING 3.1 (a) Off-take of Raw Coal Off-take of raw coal continued to maintain its upward trend and reached 543.32 million tonnes for fiscal ended March 2017, surpassing previous highest figure of 534.50 million tonnes achieved during the last year, i.e., an increase of 1.7 % over the last year. The overall raw coal off-take achieved was 90.8 % of the Annual Action Plan Target. In the year 2016-17, ECL, CCL, NCL, MCL and NEC outperformed their achievement during the last year. NCL had exceeded its target for 2016-17. Company-wise target vis-a-vis actual off-take for 2016-17 and 2015-16 are shown under Annexure 6. Offtake could have been more, but for the following reasons: Power houses started the year with huge stock of 38.7 Mt and regulated intake and preferred to consume from stock. Almost 12 Mt stock consumed from the stock by the power stations during the year. Wagon availability also sporadically affected off-take at different subsidiaries. ECL: Production and dispatch of coal from Rajmahal OCP was adversely affected due to fatal accident. Less demand of higher grade coal from the Power Houses. CCL: Intermittent Law & Order problem. Logistics bottleneck at Amrapali-Magadh Mines had also come in the way of augmenting off-take. WCL: TPPs were particularly reluctant to take coal from Cost Plus Sources. SECL:Less demand of higher grades of Korea Rewa coal. MCL: Sporadic incidence of law and order problem & less supply of wagons against their indents affected MCL despatch. Less movement through MGR mode also affected overall dispatch. Initiatives taken for enhancing off-take: - Regular co-ordination with Railway Board to optimize use of logistics resources available in the subsidiary coal companies, analyzing inputs of the subsidiaries to identify alternate source for coal movement wherever and whenever required to achieve overall sectoral targets and mitigating critical fuel requirement of consuming sectors, particularly power stations. - Coordination with MOC for various long and short-term policy decisions to overcome coal movement constraints for power and non-power sector consumers and taking operational decisions for moving coal from various sources on contingent situations to meet critical requirements of consuming sectors, particularly power utilities etc. - Periodic Meetings and follow up with Power producers in addressing issues relating to coal movement. - Source Rationalization of coal linkage for optimizing coal movement as per the requirement of the consumers and logistics. - Logistics is one of the major hurdles in reaching coal to the consumers. Capacity constraints both in terms of track and rolling stock are coming in the way for achieving the requisite growth. In order to boost-up the rail transport system, following initiatives have been taken: - SPVs by the coal companies with the State Governments and Railways for creating rail infrastructure - two SPVs have already been formed at Chhattisgarh for creating rail connectivity at Korba/ Raigarh. Similarly, SPVs were also incorporated at Jharkhand and Odisha for similar initiatives. - Three major last mile rail connectivity projects at Jharkhand, Odisha and Chhattisgarh have been brought under PMO Monitoring Mechanism to ensure commissioning as per the schedule. - Special attention is given for improving coal distribution network for small and medium and other sector consumers. CIL organized meeting with State Governments to streamline the process of nominating distribution agencies by them. - Coal companies started supplying 100 mm crushed coal to its consumers w.e.f January'2016. - Special E-Auction Schemes From the year 2015-16, Special Forward E-Auction scheme was introduced by MOC for meeting the coal requirement of Power plants is being continued. During 2015-16 & 201617, around 13.8 Mill tons & 47 Mill tons coal was booked by consumers under this scheme of e-auction respectively. A similar scheme for consumers in the non - power sector was also launched as Exclusive E-auction scheme for non-power . During 2015-16 & 2016-17 , around 1.5 Mill tons & around 6.2 Mill tons coal was booked by non power consumers under this e-auction respectively . Special Spot e-auction was also conducted once in 201617 with the objective for liquidating coal stock especially from the high stock mines and to provide scope for procuring coal at a competitive price by the consumers of non-specified end use. Around 6.2 Mill tons coal was booked in this e-auction. - Web Portal for MSME Sector- The web portal “Coal Allocation Monitoring System” was launched on 17th March'2016 by Minister of State with independent charge for Power, Coal and New & Renewable Energy along with the officials from Ministry of Coal and Coal India Limited at New Delhi. The portal aims to ease the conduct of business for small and medium sector consumers having annual requirement of less than 10,000 tonnes of coal. The portal will make the system of distribution of coal to such consumers through State Nominated Agencies, more transparent. It has the following advantages: a. Ease of doing business for consumers b. Accountability on the part of the Govt. and its enterprises c. 24 x 7 access of information on supply and distribution of coal in public domain d. Online registration and feedback system for consumers for improving the system e. Transparent coal distribution f. State and consumer awareness g. Peer audit among stakeholders (b) Sector-wise dispatch of coal & coal products: In the year 2016-17, CIL dispatched 542.494 MT of Coal & Coal Products against the AAP target of 598.031 MT i.e., an achievement of 90.7%. CIL has dispatched 7.9 MT of coal and coal products more than last year with a growth of 1.5%. 425.397 MT of coal and coal products, including despatches under special forward e-auction to power was despatched to the power utilities against the target of 450.990 MT i.e., an achievement of 94.3%. This is 12.3 MT more than last year's dispatch of 413.109 MT, which also includes despatches under special forward e-auction to power, resulting in a growth of 3%. Sector-wise break-up of dispatch of coal & coal products for 2016-17 against the target and last year's actual is disclosed in Annexure 7. 3.2 Dispatches of coal and coal products by various modes: Dispatches of coal and coal products during 2016-17 went upto 542.494 million tonnes from 534.624 million tonnes registering a growth of 1.5%. Overall dispatch by Non-Rail mode had been 91.9% of the target. Growth in despatches via Rail mode was 3.9 % whereas in the overall Non-Rail mode it decreased by 1.4 %. Road despatches decreased by 0.6% compared to the previous year. Movement by MGR also decreased by 3.5% compared to last year. Despatches through other modes, like belt & rope increased by 5.7 % compared to the last year. Dispatch of coal and coal products by various modes for the years 2016-17 and 2015-16 is disclosed in Annexure 8. 3.3 Wagon Loading Overall wagon loading materialization was 90.9 % of the target. This was achieved due to sustained efforts and regular coordination with railways at different levels. The increase in loading over last year was of 9.1 rakes per day. Company wise performance showed that NCL exceeded its target. All the subsidiaries except BCCL exceeded last year's level of loading. Wagon loading could have been even better but for the regulated lifting by Power Utilities almost in all the subsidiaries; less demand for higher grade coal from ECL and SECL, intermittent law and order problem in CCL and MCL also affected rail dispatch. Wagon loading performance of 2016-17 vis-a-vis 2015-16 is disclosed in Annexure 9. 3.4 Consumer Satisfaction i. For enhanced customer satisfaction, special emphasis given to Quality Management. Attuned to this objective, it was decided that 2017-18 will be declared as 'Quality Year'. ii. In order to monitor quality right at the coalface, Officer in charge of mining have been given target to contain grade slippages within 10%. iii. Another big step to ensure proper quality was independent assessment of grades of 871 mines/ loading points/ fractions through various academic institutes of national repute by CCO. Based on the analysis reports received from these institutions, CCO finalized the grades of different mines/sidings for the year 2017-18. Although the results of re-gradation of about 49% mines/ loading points/ fractions were not encouraging, correction would enhance the confidence of consumers. iv. In order to monitor coal quality internally, a portal has been designed by CIL to capture entire life cycle of sample. With the help of portal, analysis of coal quality on regular basis will be possible. v. CIL has enhanced coal handling plant capacity of about 320 MT per annum so as to maximize dispatches of crushed/ sized coal to Power sector. CIL is supplying (-) 100mm sized coal to all power plants w. e. f. 01.01.2016 except those at pit head. In addition, mobile crushers have been installed to meet the additional crushing requirement. vi. Emphasis has been given for maximum production through surface miners. For this, surface miners have been deployed for production of coal in mines wherever technically / commercially feasible. About 50% of CILs production is being mined through surface miners. Deployment of this technology at OCP mines is bound to improve coal quality. At present 75 Surface Miners are working in opencast mines. vii. In addition, the Washeries at BCCL, CCL, WCL and NCL have crushing/ sizing facilities to the tune of about 36.8 million tonnes. 22 new coal washeries and renovation of 05 existing washeries combined capacity of 123.7 MTPA are in various stages of planning/ commissioning. viii. Measures like picking of shale/stone, selective mining by conventional mode, adopting proper blasting procedure/ technique for reducing the possibility of admixture of coal with over-burden material & improved sizing of coal etc. are being taken. For those mines having large inter bands of shale/stone, installation of deshaler has been planned. ix. Joint/ Third Party sampling & analysis is in vogue for major consuming sectors e.g. power utilities, steel, cement and sponge iron. Entire supplies to Power sector are covered under third party sampling / analysis, large consumers having annual quantity of 0.4 MT or more and having FSA covered under sampling. For the first time, sampling facility has been extended to consumers of Special e-Auction for power sector and Linkage Auction through IIT-ISM and QCI. Consequent to issuance of Letter of Intent, these agencies have been advised to enter into tripartite agreement with consumers and coal companies to start the process. x. Area laboratories of subsidiary coal companies have been equipped with 121 Bomb Calorimeters for accurate and transparent results of analysis of coal samples. 28 labs. across the subsidiary companies have already got NABL accreditation and another 27 labs, accreditation process is underway. It is expected that standardization of the process as per NABL standard will go in a long way to enhance customers' confidence about the process of assessment of coal quality and facilitate quality monitoring. xi. The guidelines/ SOP issued by MoC vide letter dated 26.11.2015 on third party sampling at loading ends has already been implemented through Central Institute of Mining and Fuel Research (CIMFR). Sampling for almost entire quantity covered under FSA is continuing across various loading points of coal companies. xii. Electronic weighbridges with the facility of electronic printout have been installed at rail loading points to ensure that coal dispatches are made only after proper weighment. For this purpose, Coal Companies have installed 157 rail weighbridges in the Railway Sidings and 569 road weighbridges for weighment of trucks. Coal Companies have also taken action for installation of standby weighbridges to ensure 100% weighment. xiii. 24 Auto Mechanical Samplers (AMS) are also working in subsidiary coal companies for coal sampling, eliminating chances of biasness in sampling process. Procurement of further AMSs is under process. The process has already been initiated to deploy Augur Sampling for drawing more representative samples. One online analyzer in each subsidiary company has been envisaged on trial basis. xiv. In order to ensure consumer satisfaction and resolve consumer complaints, special emphasis has been given to quality management and redressal of consumer complaint. On-line filing and redressal of complaints has been initiated. Percentage of consumer complaints resolved is 99.42 % during the year 2016-17. 3.5 Marketing of Coal: Status of execution of Fuel Supply Agreements and performance of e-auction: Supply of coal was made to various consumers including Power Sector under the applicable provisions of New Coal Distribution Policy. Due to overall deficit in availability of coal, considering the projected coal production from domestic sources and commitments made through signing of FSAs/issuance of Letter of Assurances (LOA), supplies under FSAs has been pegged at various level of commitments (trigger). Power sector being the major consuming sector having significant importance in the economy, supplies to power sector has been guided as per the various Government directives and polices. (i) For power stations, commissioned on or before 31.03.2009, 306 million tonnes had been considered to be supplied through bilateral legally enforceable Fuel Supply Agreements (FSA) with a trigger level of 90%. The total quantity covered under FSA against the allocation as on March'17 was about 295 million tonnes. (ii) Apart from the above, 180 Letter of Assurances have been issued to power plants by subsidiary companies of CIL, as per the recommendations of various SLC (LT) Meetings about 433.80 Million tonnes. Further, as per Presidential Directives dated 16th April'2012 and revised directive dated 17-7-2013, a list of Power Plants having an aggregate capacity of 78535 MW was notified for signing of FSA. A total 173 TPPs, 149 cases having normal LOA and 24 cases having Tapering LOA (as per MOC OM dated 30.06.2015, tapering linkages are not existent as on date), were listed. Till 31st March'2017,out of 149 regular LOAs146 FSAs have been signed. The balance FSAs could not be signed for the reasons not attributable to CIL. However, out of the above, 1 FSA have been transferred to SCCL and 2 FSAs became null and void since the plants have been converted from IPP to CPP. For post-NCDP Plants (Plants commissioned after March 2009), total FSA commitment of CIL as on date is for an Annual Contracted Quantity (ACQ) of about 216 Million tonnes for the aggregate capacity of about 56750 MW which is backed by long term Power Purchase Agreement (PPA) and qualify for commencement of coal supply subject to commissioning etc. (iii) As on 1st April, 2017, 679 units other than power and steel plants have operative FSAs with subsidiaries of CIL for about 48.9 million tonnes. (iv) For supply of coal to Small and Medium Sector Consumers, 8 million tonnes was earmarked by CIL for allocation to agencies nominated by the State Govt's/ UT's. 13 States sent their nomination of 19 State Agencies for the year 2016-17 of which 11 State Agencies of 10 States have signed FSAs for 2.119 mill. tonnes and drawing coal accordingly. (v) After implementation of NCDP, 417 LOAs were also issued to consumers of sponge iron, CPP and cement as per recommendations of various SLC (LT) meetings for a quantity of 63.95 Million tonnes per annum. Out of these, 337 FSAs have been concluded till date for quantity of about 45.70 Million tonnes per annum. Out of these, 157 FSAs are active as on date with a quantity of 19 Million tonnes per annum. (vi) CIL conducted the Tranche-I of Auction of Coal Linkages for Sponge Iron, Cement, CPP and 'Others' sub-sectors under Non-Regulated Sector during the period June to October 2016 in accordance with the policy guidelines dated 15.02.2016 issued by Ministry of Coal. The auction has been envisaged as a transparent system of linkage allocation which is based on competitive bidding. Various consumer friendly measures such as 3rd party sampling, exit option, no performance incentive, delivery from specified mine/siding, back-up mine in the event of Force Majeure, etc. have also been introduced. A total of 23.75 Mtpa was earmarked for Tranche-I out of which 22.14 Mtpa has been booked. The auction is followed by signing of Fuel Supply Agreements (FSA) for the booked quantity. The tenure of the FSA is 5 years which can be further extended by another 5 years on mutual agreement. The Tranche-II of auctions was conducted during the period January to June 2017. Auctions for Sponge Iron, Cement, Others and Steel (coking), Others (coking) and CPP sub-sectors have already been concluded. A total of 14.50 Mtpa of non-coking coal and 0.26 Mtpa of coking coal have been booked under Tranche-II. (vi) Under Special Forward E Auction scheme during the year ended Mar'17, quantity allocated was around 47 mill tonnes as against 13.8 mill tonnes allocated in the last year. The premium gained through Special Forward E-auction over & above the notified price was 16% during the year 2016-17. In Exclusive E Auction scheme during 2016-17, quantity allocated was around 6.3 mill tonnes as against 1.5 mill tonnes allocated in the last year. The premium gained through Exclusive E-auction over & above the notified price was around 9% during the year 2016-17. During the period under review, around 53.6 mill. tonnes of coal was allocated under Spot E- auction to the successful bidders as against 57.4 mill. tonnes of coal allocated during the 2015-16. The notional gain through Spot E-auction over & above the notified price was 25% during the year 201617. About 6.2 Mill tes coal booked under Special Spot E-Auction during 2016-17 with gain of 20% over notified price. 3.6 Coal Beneficiation: Presently CIL is operating 15 Coal Washeries with a total coal washing capacity of 36.8 million tonnes per year of which 12 are coking and the rest 3 are non-coking with capacity of 23.3 and 13.5 MTY respectively. The total washed coal production from these existing washeries for the year 2016-17 was 17.04 Million Tonnes. In addition, CIL has planned to set up 22 new Washeries and renovate 5 existing coking coal washeries with state-of-the-art technologies in the field of coal beneficiation with an aggregate throughput capacity of 123.68 MTY. Out of the 22 new washeries, 13 are planned to wash coking coal with a cumulative capacity of 41.35 Mty, 4 of which are at different stages of construction and LOI has been issued for one. For remaining 9 new non-coking coal washeries with a total capacity of 75.5 MTY, LOA/LOIs has been issued for 3. The major bottlenecks for setting up of these washeries are mainly Forest, Environmental and other Statutory Clearances, in addition to absence of firm commitment from the intended customers regarding acceptance of washed coal at value added prices. 3.7 Stock of Coal The stock of coal (net of provisions) at the close of the year 2016-17 was Rs.7412.79 Crores (earlier year Rs.6162.54 crores), which was equivalent to 1.18 months value of net sales (previous year 0.98 months). The company-wise position of stock held on 31st March 2016 & 31st March 2017 are given in Annexure 10. 3.8 Trade Receivables Trade Receivables i.e. net coal sales dues outstanding as on 31.03.2017, after providing Rs.3782.82 crores (previous year Rs.2220.20 crores) for bad and doubtful debts, was Rs.10735.85 crores (previous year reinstated Rs.11447.61 crores) which is equivalent to 1.05 months gross sales of CIL as a whole (previous year 1.27 months). Subsidiary-wise break-up of trade receivables outstanding as on 31st March 2017 as against 31st March 2016 are shown in Annexure 11.. 3.9 Payment of Royalty, Cess, Sales Tax, Stowing Excise Duty, Central Excise Duty, Clean Energy Cess, Entry Tax & Others During the year 2016-17, CIL and its Subsidiaries paid/adjusted Rs.44,068.28 crores (previous year Rs.29,084.11 crores) towards Royalty, Cess, Sales Tax and other levies as detailed below:- Figures in Rs. Crores 2016-17 2015-16 Royalty 8745.84 8,209.25 Additional Royalty (MMDR Act) - 434.42 DMF 3964.47 - NMET 221.16 - Cess on Coal 1706.37 1,590.67 State Sales Tax / VAT 2787.91 2,444.75 Central Sales Tax 1200.09 1,144.79 Stowing Excise Duty 538.00 525.67 Central Excise Duty 2617.39 3,647.00 Clean Energy Cess 21062.06 9,980.13 Entry Tax 283.82 259.37 Others 941.00 848.06 Total 44068.28 29,084.11 Subsidiary-wise, State wise details are given in Annexure 12. 4. COAL PRODUCTION Raw coal production and production from underground and opencast mines. Production of raw coal during 2016-17 was 554.14 Mill Te against 538.754 Mill Te produced in 2015-16. Coal production from underground mines in 2016-17 was 31.477 Mill Te compared to 33.786 Mill Te in 2015-16. Production from opencast mines during 2016-17 was 94.32% of total raw coal production. Subsidiary wise production, production from underground and opencast mines and coking and non-coking coal production are disclosed in Annexure 13. Reasons for less production than the target 2016-17: Despite best and consistent efforts, constraints that have impeded the growth in coal production are as under: (i) Major mishap at Rajmahal OC affected production at ECL. (ii) Accumulation of high coal stock at many of the OC mines due to less lifting of coal by Cost Plus consumers at WCL. (iii) Delayed Stage-II forest clearance at Dhanpuri OC, Amlai OC and Jampali OC and also restricted working space at Amgaon OC due to intervening forest land affected Coal Production at SECL (iv) Scarcity of working space due to delay in handing over of forest land at Jagannath OC and Ananta OC, delay in Stage II FC at Lajkura OC & R&R issues at Bharatpur OC and Kanhia OC and affected production at MCL. Washed Coal (Coking) Production Subsidiary-wise production of Washed Coal (Coking) is given in Annexure 13A. Overburden Removal The Company-wise overburden removal is disclosed in Annexure 13B. Future Outlook CIL has envisaged a coal production of 908.10 Mt in the year 2019-20 with a CAGR of 12.98% with respect to 2014-15. In the year 2017-18, the target of coal production has been pegged at 600.00 Mt with an annualized growth of about 8.3% over the achievement of last year. In 2018-19, the envisaged coal production projection is 773.70 Mt with a growth of about 28.95 %. The capital expenditure for the year 2017-18 has been set at Rs.8500 crores. Further, Company has planned to invest Rs.6500 crores in various projects viz. Super Critical Thermal Power Plant (STPP), Solar Power, Revival of Fertilizer Plants, Coal Gasification, Acquisition of coal blocks in India & Abroad, CBM etc. during 2017-18. In the light of Paris Protocol and consequent changes in world energy scenario, CIL is looking forward to diversify its operations towards Renewable energy like Solar Power and Clean Energy sources like CMM, CBM, CTL, UCG etc following the directives of GoI. Following that mission, MoC/CIL is in the process of formulating 'Vision Document 2030' to decide future course of operation for sustainable entity in the nation's energy sector. 5. POPULATION OF EQUIPMENT Due to survey-off 5 Draglines at NCL and MCL in 2016-17 population of Dragline reduced to 35 as on 31st Mar'17. There was a reduction of 39 Shovels due to survey off of old Shovels in ECL, BCCL, CCL, NCL, WCL & SECL. CIL and its subsidiaries are planning to procure 87 shovel costing around Rs 1929 crores,515 Dumper costing around Rs 3305 crores, 124 Dozers costing around Rs 314 crores,35 Drill costing around Rs 144 crores & 6 Draglines costing around Rs 1176 crores in next 2/3 years. Performance of HEC Dragline at NCL was not satisfactory which affected availability & utilization. Matter has been taken up with M/s HEC for improvement. Dragline of Sonepur Bazari Project, ECL was under breakdown since June 16 due to nonsupply of imported spares, which is expected to start within next 2 months. Heavy rainfall in NCL & MCL, Land and R&R problems in BCCL, MCL & SECL,were the major reasons for less HEMM utilization. Efforts are being made to improve the availability & utilization. The population of Major Opencast Equipment (Heavy Earth Moving Machinery) as on 1st April, 16 & on 1st April, 17 along with its performance in terms of availability & utilisation expressed as percentage of CMPDIL norm is disclosed in Annexure 14. 6. CAPACITY UTILIZATION The overall system capacity utilization for the year 2016-17 was 84.51%.It was 99.87% during 2015-16.This was mainly due to low system capacity utilization in ECL, BCCL, NCL, WCL, & MCL. Due to accident in Rajmahal OCP of ECL, both coal production & OB removal suffered in the last quarter of 2016-17.Due to unprecedented rainfall, OB removal suffered in BCCL & NCL. In WCL,due to exhaustion of reserves in Ghughus OC, the dragline was shifted from Ghughus OC to Mungoli OC and other HEMM to different mines, which affected OB removal. In Talcher coalfields of MCL, due to law & order issues, there was a negative growth in coal production in 2016-17 compared to 2015-16. Necessary action has already been taken for improvement in capacity utilization in 2017-18 in all the Subsidiaries of Coal India Ltd. Subsidiary wise details of capacity utilization for the year 2016-17 vis-a-vis 2015-16 are disclosed in Annexure 15. 7. PROJECT FORMULATION 7.1 Preparation of Reports: As prioritized by subsidiary companies of Coal India Limited, preparation of Project Reports (PR) for new/expansion/reorganization mines was carried out during the year 2016-17 for building additional coal production capacity to the tune of 57.75 Mty. Revision of Project Reports/Cost Estimates for projects was also taken up along with new PR. During the period, 249 reports were prepared including 16 Geological Reports, 26 Projects Reports, 37 Draft EMPs (including 15 Form-I) and 170 Other Reports. 7.2 Project Implementation: a) Projects Completed During the year 2016-17: The following 7 coal projects, each costing Rs 20 Crores and above, with an ultimate capacity of 24.20 Mty and completion cost of Rs 1190.98 Crores have been completed during the year 2016 -17. The subsidiary-wise details of project completed during 2016-17 are disclosed in Annexure 16. b) Projects started Production during the Year 2016-17: 4 projects have started coal production during the year 2016-17.The subsidiary-wise details are disclosed in Annexure 16. c) Status of Ongoing Projects: 120 coal projects and 71 non mining projects costing Rs 20 Crores and above are in different stages of implementation. Out of 120 coal projects, 58 projects are running on schedule and 62 are delayed. Out of 71 non mining projects, 27 are delayed. Status of Ongoing Projects Costing Rs 20 Crores and above Projects Total Projects Projects on Schedule Projects Delayed Mining 120 58 62 Non Mining 71 44 27 Total 191 102 89 Reasons for the Delay: Mining Projects: 34 coal mining projects are running behind the schedule due to delay in obtaining forestry clearances and 17 are due to delay in acquisition of land and associated R&R issues. In addition, 7 projects are running behind the schedule due to delay or discontinuance of work or non-participation in tender by contractor, 1 project due to law and order problem and 3 projects due to lack of Railway Infrastructure facilities for coal evacuation. Non Mining Projects: Non mining projects are running behind the schedule due to discontinuance of work by contractor, law and order problem, acquisition of land and associated problems of rehabilitation and forestry clearances. 7.3 Projects Sanctioned (Costing Rs 20 Crores & above): a) Projects sanctioned by CIL Board 8 coal mining projects for an ultimate capacity of 56.25 Mty and a total capital investment of Rs.8931.05 Crores have been sanctioned by CIL Board during the year 2016-17. The subsidiary-wise details of projects sanctioned by CIL Board in 2016-17 is disclosed in Annexure 16. b) Non Mining Projects Sanctioned by CIL & Subsidiaries Board: No Non-mining projects have been sanctioned by CIL & Subsidiaries Board during the year 2016-17. Sl. No. Project Subsidiary Date of Approval Sanctioned Capital (Rs. Crores) NIL c) Projects Sanctioned by Subsidiary Company Boards: 11 coal mining projects for an ultimate capacity of 16.74 Mty and capital investment of Rs.3427.26 Crores have been sanctioned by Subsidiary Coal Companies during the year 2016-17. The subsidiary-wise details of projects sanctioned by their Board in 2016-17 are disclosed in Annexure 16. 7.4 Revised Project/RCE Sanctioned by CIL Board: a) RCE/RPR/UCE sanctioned by the CIL Board during the year 2016-17: - Project Subsidiary Date of Approval (Mtpa) Sanctioned Capacity Sanctioned Capital (Rs. Crores) Khottadih OCP ECL 03.05.16 1.5 60.10 b) RCE/RPR/UCE sanctioned by the Subsidiary Boards:- Project Subsidiary Date of Approval (Mtpa) Sanctioned Capacity Sanctioned Capital (Rs. Crores) Sarapali OC RCE SECL 04.09.2016 1.40 143.63 Jaganathpur OC RCE SECL 25.07.2016 3.00 459.59 Total 4.4 603.22 7.5 Key Strategies: (i) Critical Railway Links: In order to achieve the planned growth in production and evacuation in future, CIL has undertaken three major Railway Infrastructure Projects, implemented either by Railways or JV Companies formed with IRCON representing Railways, Subsidiary Company representing CIL and concerned State Government. The three major Railway Infrastructure Projects are: 1. Tori- Shivpur-Kathotia New BG Line 2. Jharsuguda- Barpali- Sardega Rail Link 3. East Rail Corridor and East- West Rail Corridor Tori- Shivpur railway line is catering to North Karanpura Area of CCL. It is planned to evacuate about 32 MTY of coal. Jharsuguda-Barpali- Sardega Rail Link is Catering to the coalfields of MCL. This Rail line shall evacuate 70 MTY of coal from the coalfields of MCL. The evacuation of coal of Mand- Raigarh and Korba - Gevra Coalfields of SECL, shall be through East Rail Corridor and East- West Rail Corridor respectively. In all, about 180 MTY of coal shall be evacuated through these two corridors. (ii) Acquisition and Possession of land: In all subsidiaries of Coal India, the major portion of land is acquired under the Coal Bearing Areas (Acquisition & Development) Act, 1957. During 2016-17, notification under section 9 (1) has been issued for 3086.69 Ha and notification under section 11 (1) has been issued for 4196.69 Ha. During 2016-17, 3826.19 Ha of land has been taken into possession in various subsidiaries of Coal India. (iii) WEB Based Online Monitoring System: Web based online monitoring of coal mining projects costing more than Rs 100 Crs has been introduced in Coal India. Exercise for 69 projects costing more than Rs 150 Crs and capacity 3.0 Mty and above have so far been completed during the year 2016-17. Additionally, monitoring of 67 coal mining projects costing more than Rs 150 Crores with Project monitoring software MS Project has also been started in Coal India Limited during the year 2016-17.Crucial issues are also being uploaded by CIL and its subsidiary companies on MOC e-CPMP portal and MOC is vigorously following up with the state governments and other associated ministries by holding meetings with concerned officials to expedite EC & FC approvals. 7.6 STEPS TAKEN TO ACHIEVE ONE BILLION COAL PRODUCTION IN 2019-20 One Billion Tonne (Bt) production essentially is a synergic effort with coal bearing states and railways to access the resources and speed up logistics for coal evacuation. Coal India has decided to put its best foot forward with the help of all concerned agencies and take its production into higher growth trajectory. Contribution from identified projects will be 908 Million Tonnes (Mt) and identification of projects for the balance quantity is in progress. Group wise Production from Projects Existing coal projects are envisaged to contribute about 165 Mt, projects under implementation are likely to contribute 561 Mt. Future projects are planned to produce 182 Mt during the year 2019-20. Contribution from Subsidiaries Projected contribution from MCL and SECL will be to the tune of 250 Mt and 240 Mt respectively during the year 2019-20. Production contribution from the rest of the subsidiaries during the year 2019 - 20 have been projected as under: - Eastern Coalfields Limited - 62 Mt Bharat Coking Coal Limited - 53 Mt Central Coalfields Limited - 133 Mt Northern Coalfields Limited - 110 Mt Western Coalfields Limited - 60 Mt Major Challenges The dream of providing 1Bt of coal (qualitatively & quantitatively) to the Nation will be achieved only through the concerted efforts of CIL, Railways and State Governments. Three critical railway lines, mechanization through latest technology, upgrading skills of employees, speedy acquisition of land, expeditious environmental and forest clearances and fast track state level clearances are crucial for realization of 1 Bt coal production by CIL. Key Strategies (I) Technology Development a. Exploration capacity is planned to be augmented with more use of hydrostatic drills, geophysical loggers, 2D/3D Seismic Survey Technology and Optimization of number of coring boreholes based on the complexity of geology of the block. b. Introduction of high capacity equipment, Operator Independent Truck Dispatch Systems, Vehicle Tracking System using GPS/GPRS, CHP and SILOS for faster loading and monitoring using laser scanners have been planned to augment coal production from opencast mines. c. Introduction of Continuous Miner Technology on large scale, Long Wall Technology at selected places, Man Riding system in major mines and Use of Tele - monitoring techniques have been envisaged to increase production from underground mines. (II) Role of HR Driving CIL Corporate Vision by building capabilities, creating performance culture & developing talent pool. (III) System Improvements Introduction of e-procurement of equipment and spares, e-tender of work and services, implementation of Coal Net, establishment of connectivity, revision of guidelines and manuals, use of GPS for monitoring operational efficiency in road transport of coal have been planned to improve the overall system. 8. CONSERVATION OF ENERGY Conservation of energy always remains a priority area and CIL/Subsidiaries have undertaken various measures towards reduction in specific energy consumption. Even though Coal Production had increased by 2.9% in 2016-17 compared to 2015-16, electricity consumption has however reduced to 4886.83 Million Units vis-a-vis 4971.13 Million Units during 2015-16 with a reduction of 1.7% in absolute terms. Specific Power Consumption (kWh/T) during 2016-17 is 8.82 kWh/T vis-a-vis 9.23 kWh/T during 2015-16 with a reduction of 4.42%. CIL/Subsidiaries endeavor to maintain this trend of reduction in specific power consumption (kWh/T) every year with reference to previous year. Some of the salient measures taken by CIL/Subsidiaries for energy conservation are as under :- - CMPDIL HQ has undertaken energy conservation studies in 2016-17 and carried out Diesel Audit & Benchmarking of specific diesel consumption as well as Electrical Audit & Benchmarking of specific electrical energy consumption in various opencast and underground mines situated in different subsidiaries of Coal India Limited by Bureau of Energy Efficiency (BEE) accredited Energy Auditors. Diesel Audit and Benchmarking carried out by CMPDIL in 71 opencast mines in different subsidiary companies revealed an aggregate saving of approximately 16750 kilo litre/year in diesel consumption. These 71 opencast mines are selected having composite capacity (Coal+OB) of 1.0 mill.cub.m or more in ECL, 2.0 mill.cub.m or more in BCCL, WCL, CCL and 5.0 mill.cub.m or more in NCL, SECL and MCL respectively. Likewise, Electrical Audit and Benchmarking carried out in 08 mines (07 opencast mines and 01 underground mine) revealed an aggregate saving of approx. 110 million units/year. - MoU has been signed between CIL (Coal India Limited) and EESL (Energy Efficiency Services Limited) on 08.02.2016 for implementation of Energy Efficiency Projects in CIL and its Subsidiaries. - Accordingly, high watt luminaries / conventional light fittings are being replaced with low power consuming LEDs (of appropriate wattage) in majority of the places for street lighting, Office and other work places, townships etc., thereby creating huge saving potential in electricity consumption. Around 64000 LED Lights have been fitted (new + replacement) in CIL/Subsidiaries for better conservation of energy. - Air Conditioners (AC) and Refrigerators of 5 Star Rating are procured against replacement of old conventional ACs and refrigerators. Use of Super Energy Efficient Air Conditioners (AC) are also being explored at places having technical capability of saving energy 30% more than the 5 star-rated ACs. - Energy audit of selected mines / office buildings conducted by CMPDIL / External Agency. - Installation of power capacitors of appropriate kVAR rating to maintain higher power factor to avail maximum benefit on power factor incentive from power supply agency as well as reduction in Maximum Demand. Aggregate Power Factor maintained at CIL subsidiaries is as high as 95% during 2016-17. - Auto timer based on-off switches in most of the street lighting / CHPs and township areas to ensure avoiding unnecessary power consumption during odd hours thereby saving in electricity consumption. - Construction of strata bunkers in underground (UG) mines to eliminate idle running of belt conveyors thereby saving electricity. - Re-organization of LT (Low Tension) overhead line by Aerial Bunched Cable to avoid unauthorized power tapping. - Monitoring of load pattern and demand side management of supply points limiting maximum demand wherever practicable by staggering avoidable load from peak hours to off-peak hours. - Elimination or reduction of stage pumping as far as practicable. - Re-organization of power distribution system. - Power supply to underground mines by laying cables directly through bore holes wherever feasible. The above measures are indicative and not exhaustive. (ii) In addition to above, CIL / Subsidiary Companies are also pursuing use of alternative energy sources. Various steps have been taken for utilizing solar power as alternate sources of energy, some of which are as stated below : - In kilo-watt scale, roof top solar plants are in successful operation at various places since their commissioning. Such plants are in operation at Corporate Office of Coal India Ltd, New town, Kolkata (160 kWp), CMPDI HQ, Ranchi (190 kWp), CMPDIL RI-VI, Singrauli (50 kWp), CMPDIL RI-II, Dhanbad (50 kWp), Sodepur (5 kWp) and Bankola (30 kWp) at ECL, Central Repair Shop, Barkakana (25 kWp) at CCL, Nagpur Area (80 kWp) and Ballarpur area (60 kWp) at WCL respectively. - In megawatt scale, one ground-mounted solar power plant (2.016 MWp) is in operation at MCL HQ since it is commissioning on 13.10.2014. - In CCL, work order for solar power plant of capacity 400 kWp on the roof top of Darbhanga House, CCL HQ, Ranchi has already been issued to M/s BHEL. Another such plant of capacity 50 kWp has been approved for Kathara Area on the roof top of Executive Hostel Building. Plant of capacity 80kwp has been aprroved for CMPDIL RI-I office building at Asansol. - In kilo-watt scale, roof top solar power plants have been identified for their commissioning at ECL (aggregate capacity: 60 kWp), MCL (150 kWp) and CMPDIL RI-VII (60 kWp) respectively. - In mega-watt scale, WCL has planning for installation of 1.257 MWp and 50 MWp solar power projects. 9. CAPITAL EXPENDITURE Overall Capital Expenditure during 2016-17 was Rs.7700.06 crores as against Rs.6,123.03 crores in previous year. Capital Expenditure incurred during 2016-17 is 99.16% of BE (102.21% in 2015-16). Subsidiary-wise details of which are given in Annexure 17. 10. CAPITAL STRUCTURE The authorized share capital of the company as on 31.03.2017 was Rs.8904.18 crores, distributed between Equity and Non-cumulative redeemable preference shares as under: (i) 800,00,00,000 Equity Shares of Rs.10/- each (Previous Year 800,00,00,000 Equity Shares of Rs.10/- each) Rs.8000.00 crores (ii) 90,41,800 Non-cumulative 10% redeemable Preference Shares of Rs.1000/- each (Previous Year 90,41,800 Non-cumulative 10% Redeemable Preference Shares of Rs.1000/- each) Rs.904.18 crores Total Rs.8904.18 crores Listing of shares of Coal India Limited in Stock Exchanges: The shares of Coal India Ltd. is listed in two major stock exchanges of India, viz. Bombay Stock Exchange and National Stock Exchange on and from 4th November, 2010. The details of disinvestment of shares by Govt. of India is furnished below: Sl No Financial Year of Disinvestment % of shares disinvested No. of shares disinvested Mode 1 2010-11 10.00% 63,16,36,440 IPO 2 2013-14 0.35% 2,20,37,834 CPSE-ETF 3 2014-15 10.00% 63,16,36,440 OFS 4 2015-16 0.001% 83,104 CPSE-ETF 5 2016-17 1.248% 7,88,42,816 Buyback 6 2016-17 0.92% 5,71,56,437 CPSE-ETF Hence, the number of shares held by Govt. of India as on 31.03.2017 is 4,89,49,71,329 i.e.78.857% of the total 6,20,74,09,177 number of shares (earlier year 5,03,09,70,582 i.e. 79.649% of total number of shares). During the year the company has not issued any shares. However, pursuant to Public Announcement (PA) published on August 30,2016 and letter of offer dated September 23,2016, the company has bought back its 10,89,55,223 number of equity shares of face value of Rs.10/- each fully paid up through tender offer route under Stock Exchange mechanism and extinguished these shares on October 28,2016. Post such buyback, the number of fully paid equity shares as on stands at 6,20,74,09,177. Pursuant to above, the shareholding pattern in CIL stood as follows: As on 31.03.2017 As on 31.03.2016 Shareholding Pattern (%) Share Capital (Rs Crore) Shareholding Pattern (%) Share Capital (Rs Crore) Government of India 78.857 % 4894.97 79.649 % 5030.97 Other Investors 21.143% 1312.44 20.351% 1285.39 Total 100.000% 6207.41 100.000% 6316.36 During the year 2016-17, three subsidiaries of CIL viz. NCL, SECL and MCL have bought back its shares from CIL. The details of such buy back are as follows:- Name of the Subsidiary NCL SECL MCL No. of Shares brought back by subsidiary 411135 609250 451743 Buy back Price Rs.30260.70 Rs.19699.47 Rs.35796.02 Consideration received by CIL Rs.1244.12 crore Rs.1200.19 crore Rs.1617.06 crore No. of Shares held by CIL post buy back 1365593 2987750 1412266 11. BORROWINGS Aggregate borrowings including both current & non-current of CIL stood at Rs.410.77 crores in 2016-17 from Rs.269.76 crores in 2015-16, as detailed below. Figures in Rs. Crores Particulars 2016-17 2015-16 Foreign Loans including deferred credits - EDC Canada 167.2 174.14 - Liebherr France SA., France 6.64 7.77 - IRCON International Ltd. 171.44 63.92 Chattisgarh State Infrastructure Development Corpn Ltd. 65.49 23.93 TOTAL 410.77 269.76 In addition to the above Short term Borrowings of CIL stood at Rs.2603.81 crores in 2016-17 from Rs.929.03 crores in 2015-16, as detailed below. Figures in Rs. Crores Particulars 2016-17 2015-16 Loan repayable on demand - From Banks 2603.78 929.00 - From Other Parties 0.03 0.03 TOTAL 2603.81 929.03 The debt servicing has been duly met in case of the loans / deferred credits whenever due. The subsidiary companies of SECL M/s Chhattisgarh East Railway Limited (CERL) & M/s Chhattisgarh East-West Railway Limited (CEWRL) have taken loan from IRCON International Ltd and Chhattisgarh State Infrastructure Development Corpn Ltd. with repayment period of 5 years excluding moratorium period not exceeding 5 years from the date of signing of Loan Agreement. 12. INTERNATIONAL CO-OPERATION Coal India is envisaged for foreign collaboration with a view to: - Bring in proven and advanced technologies and management skills for exploiting UG and OC mines, coal preparation and related activities. - Exploration and exploitation of Methane from Coal bed, abandoned mine, ventilation air, shale gas, coal gasification, etc. - Locating overseas countries interested in Joint Venture in the field of coal mining with special thrust on coking coal mining. The priority areas included acquisition of modern and high productive underground mining technology, introduction of high productive opencast mining technology, improvement in working in underground in difficult geological conditions, fire control and mine safety, coal preparation, application of 3D seismic survey for exploration , extraction of coal bed methane, coal gasification, application of Geographical Information System, satellite surveillance, subsidence monitoring, environmental control, overseas ventures in coal mining. CIL aims to acquire suitable technology through international bidding. Bilateral cooperation is also being encouraged for locating availability of cost effective and latest technologies in the aforesaid areas. CIL, therefore, has been following both the routes. Following are the details of activities that took place with various countries during 2016-17. FOREIGN COLLABORATION Indo-US Collaboration: Status of On-going Projects: a) Development of Coal Preparation Plant Simulator M/s Sharpe International LLC, USA (SI) was awarded the work in October 2009 for development of a Coal Preparation Plant Simulator. Total work was split into 18 activities out of which 11 activities were completed and payment to the tune of 40% value had been released in line with provision of the contract. Later in October 2013, SI expressed their inability to complete the work. US representatives were requested to take up the matter with M/s Sharpe for a meaningful conclusion of the project. US side advised to contact Mr. Carl Jacobson in this regard. Consequently, Mr. Carl Jacobson was contacted for submission of a proposal for execution of the project within the framework of existing agreement. From perusal of the proposal submitted by him, it was noted that M/s Coal Sim was responsible for the development of software based on the mining engineering expertise provided by Mr. Mark Sharpe. The issue is being examined for meaningful conclusion. Further, Mr. Manoj Mohanty from Southern Illinois University Carbondale, USA vide his email dated 08.01.2016 expressed desire “to complete the project that SI could not complete”. Mr. Mohanty was requested to submit his proposal through US DoE and MoC, as the project was identified under Indo-US Coal Working Group work plan. Subsequently, a proposal from Mr. Mohanty was received through US DoE and MoC, GoI. Comments of CMPDI in this regard were sent to Advisor (Projects), MoC on 03.10.16 and also to Mr. Smouse Scott of DoE on 27.10.2016.In response to the queries raised by Dr. Mohanty of SIU (vide e-mail dated 07.11.2016 forwarded by Dr. Scott Smouse of US DOE), suitable reply has been sent on 23.11.2016. On 22.12.2016, Dr. Scott Smouse of US DOE sent reply indicating project direct cost for the subject assignment with Power Plant economics increased substantially to US$ 3,50,000 plus additional 47.5% charge on the project direct cost as research overhead expenses. CMPDI vide email dated 09.01.2017 requested Dr. Scott Smouse to look into the matter and asked Dr. Mohanty to respond accordingly so that the final proposal can be prepared and submitted at the earliest with due consideration to fund limitation as the balance fund left in the project is US$ 225,000. Necessary reply in this regard is awaited. b) Cost Effective Technology for Beneficiation and Recovery of Fine Coal US DOE had identified Virginia Tech University (VTU) for establishing an efficient technique for beneficiation & dewatering of Indian coking coal mines through the testing of coal samples in lab and pilot plants at VTU for identification of state-of-the-art technologies based on which a demonstration plant was to be installed in Sudamdih Washery in BCCL. A joint project proposal was drawn and approved by CIL R&D Board in Dec, 2010. The VTU, however, expressed its inability to sign an international agreement and as such the project could not be started. During the 10th Indo-US CWG meeting in New Delhi on 10.03.2014, US representatives were requested to take up the matter with VTU for meaningful conclusion of the project. US side had advised to contact Dr. Roe Hoan Yoon of Virginia Tech for further discussion in this regard. Subsequently the issue was taken up with Dr. Roe Hoan Yoon to obtain methodology for execution of the assignment. On perusal of the correspondences made with Dr. Yoon, it is observed that VTU is not in a position to associate in the project in accordance with the methodology of the approved project. The issue is being examined for meaningful conclusion. Further, Dr. Yoon vide e-mail dated 08.01.2016 informed that VTU had developed HHS process for fine Coal Cleaning and would be submitting a proposal on the same. However, since the project was identified under Indo-US Coal Working Group work plan, Dr. Yoon was requested to route his proposal through US DoE and MoC. Further, the matter has been followed up from CMPDI's end. Reply is awaited from Dr. Yoon. Meanwhile, Shri R B Mathur, President, Business Development & Mining Strategy, Virginia Mining Resources Pvt. Ltd. (VMR) submitted, vide his email dated 09.05.2016, that VMR is a sister concern of Minerals Refining Company (MRC) which is associated with Dr. Yoon in development of Hydrophobic-Hydrophilic Separation (HHS) Technology. He expressed to undertake a pilot project on HHS Technology under S&T Programme in India. He was requested vide email dated 20.05.2016 that a proposal should be sent to this office with details of HHS Technology, its availability and cost etc. for initiating appropriate action. Subsequently, a Proposal titled “Application of the Hydrophobic-Hydrophilic Separation (HHS) Process for the Beneficiation of Indian Coals” from M/s MRC was received through US DoE and MoC, GoI. Comments of CMPDI in this regard has been sent to Advisor (Projects), MoC on 07.10.16 and also to Mr. Smouse Scott of DoE on 27.10.2016 stating the following: - The promotor of HHS technology may be requested to submit a project proposal for “Design of a POC-Scale Plant”. The proposal would initially include the setting up of a POC-Scale Plant at CMPDI(HQ), Ranchi (in Stage-I) to compare yield of different types of Indian coal in HHS process with that obtained through conventional floatation scheme. - Based on the findings of the study carried out in Stage-I, the technology may be implemented in Stage-II for “Conceptual Design of a Demonstration Plant”. In the meantime, Shri R.B. Mathur, vide e-mail dated 21.11.2016, submitted a revised proposal with incorporation of the PROPOSED BUDGET BY TASK, i.e. the total cost of involvement of US side is USD 1,508,312 as indicated earlier, has been split into different tasks which is related to lab scale testing and consultancy services by the project proponent. It can be summarized from the revised proposal that - US Cost till Design of a POC-Scale Plant (as indicated under Task 1 to 3) is USD 923,104 and - US Cost for the Conceptual Design of a Demonstration Plant with retrofit (as indicated under Task 4 to 6) is USD 585,208. On 02.12.2016, CMPDI responded to Dr. Scott Smouse that in addition to the reply made on 27.10.2016, it may further be noted that the indicated cost mentioned above is towards Laboratory tests on coal samples (to be transported by CMPDI to Virginia Tech Laboratory in USA), detailed characterization for pilot design, design of a POC-scale plant, conceptual design of a Demonstration Plant and developing a flowsheet to Retrofit in existing plant only. It does not include any supply item, not even the cost towards HHS set up required for POC-scale plant, without which the objective of the HHS scheme cannot be accomplished. In the meantime, Shri R.B. Mathur, President (Business Development & Mining Strategy), Virginia Mining Resources Private Ltd. (vide e-mail dated 16.02.2017) informed that comments on the observation of CMPDI shall be provided through official channels. Accordingly, Dr. Scott Smouse vide email dated 23.03.2017 has submitted a revised proposal as received from Virginia Minerals Refining Corp. Scrutiny of the proposal is done at CMPDI. New Areas of Collaboration a) Underground Coal Gasification (UCG): UCG is one of the key areas under Indo-US collaboration. A project brief for capacity building in the field of UCG development has been sent to MoC for consideration in India-US Coal Working Group Meeting held on 16th Sept. 2015 at Washington, USA for the development of UCG in CIL command area. Initially, DoE indicated that UC-CIEE (California Institute for Energy and Env.) can be approached. Thereafter, Lawrence Livermore National Laboratory was requested to associate. US DoE agreed to identify US Experts and will inform the Indian side for further course of direct action. Response from DoE is awaited. b) Shale Gas: In the Indo US Working Group Meeting held on 16thSeptember, 2015 at Washington, USA, it has been agreed that potential business collaboration will be identified for shale gas assessment in “Barren Measures” above coal seams. c) Coal Mine Methane (CMM): CMM blocks have been identified in and around active mining areas under CIL command area for commercial exploitation of methane in Raniganj Coalfield (ECL command Area), Jharia Coalfield (BCCL command Area). US Experts are requested to suggest suitable technology providers for commercial extraction of CMM & its utilization. d) Dynamic planning of large capacity opencast mines: The National Energy Technology Laboratory (NETL), USA has been entrusted with the responsibility for identifying suitable US agencies for cooperation in this area. As advised by US Side, M/s Norwest Corporation and M/s Art Sullivan Mine Services were contacted by CMPDI. Finally, the subject of “large capacity opencast mine planning, norms and standard, safe designs and dump optimization” was finalized with M/s Norwest Corporation. After many deliberations on the proposal, it was proposed by CMPDI to route the proposal through Indo-US CWG platform prior to submission at the R&D Nodal Agency (i.e. CMPDI) for funding under CIL. A meeting was held at CMPDI with officials from M/s Norwest Corporation on 20th July 2016 and a decision was taken to formulate the proposal in two phases i.e. Phase-I: Study & Capacity Building, and Phase-II: Implementation in one of the selected OC mines in CCL. (CCL has given consent for study and implementation of the proposal in Amrapali OCP vide letter dated 29th Aug. 2016). Mr. Pat Akers, representative of Norwest Corporation, again visited CMPDI on 21stDecember 2016 for further discussions and Mr. Akers agreed to reframe the scope of work as desired by CMPDI. A revised draft proposal was submitted by Mr. Akers on 17th January 2017 and scope of the project has been finalized by CMPDI. A complete proposal with time and cost estimates is expected to be submitted by Mr. Akers. Reminders were sent through e-mails dated 23.02.2017 and 20.03.2017 by CMPDI. In response, a few queries/clarifications were sought by Mr. Akers on 22.03.2017. Subsequently, query-wise clarification was e-mailed to Mr. Akers on 23.03.2017 for incorporation in the proposal. Detailed proposal is awaited. e) Mine Rehabilitation & Reclamation of Indian coal mines: Projects on sustainable mine closure activities and mining wasteland to be utilized as a source of livelihood for local community were proposed to be carried out with the help of US agencies. In this regard, a proposal was received from M/s Norwest Corporation on 15th Dec, 2015. After many deliberations on the proposal, CMPDI advised to route the proposal through Indo-US CWG platform prior to its submission to R&D Nodal Agency (i.e. CMPDI) for funding under CIL. Subsequently, a meeting was held at CMPDI with officials from M/s Norwest Corporation on 20th July 2016 and a decision was taken to formulate the proposal in two phases i.e. Phase-I: Study & Capacity Building and Phase-II: Implementation in one of the selected OC mines in CCL (CCL has given consent for study and implementation of the proposal in Amrapali OCP vide letter dated 29th Aug. 2016). M/s Norwest Corporation has prepared the revised draft proposal and sent to CMPDI (HQ), Ranchi (Implementing Agency) on 06.09.2016 for necessary scrutiny. The proposal was vetted and the observation received on 30.12.2016. In the meantime, CMPDI has forwarded the same to M/s Norwest Corporation vide email dated 28.11.2016 for incorporating their input before submission of the proposal. Mr. Pat Akers, representative of M/s Norwest Corporation, had a meeting with CMPDI officials on 20th December 2016 at New Delhi. After detailed discussions on issues raised by CMPDI, Mr. Akers agreed to incorporate the points raised by CMPDI and agreed to submit the revised proposal by January 2017. The revised draft proposal was submitted by Mr. Akers on 10th January 2017. Reply has been sent by CMPDI on 1st February 2017 for submission of revised proposal incorporating the suggestions made by CMPDI. In response to the email dated 09.03.2017 by Norwest Corporation regarding some issues of service tax, necessary reply has been sent by CMPDI vide e-mail dated 22.03.2017. The revised proposal is awaited. f) Advanced Dry Coal Beneficiation technology: Dry Coal beneficiation is a priority area identified under Indo-US CWG. Mr. Manoj Mohanty of Southern Illinois University Carbondale submitted a short proposal on DryJet Sorting Technologies through US DOE in Aug. 2014, which is based on X-Ray detection and pneumatic sorting technology, similar to Ardee Sort, CMPDI is already trying under R&D Project at Madhub washery, BCCL. During the last CWG meet held in USA on 16th Sept. 2015 at Washington DC, Mr. Manoj Mohanty was contacted to submit a proposal on FGX Dry Coal separator, which he also confirmed through email dated 08.01.2016. The proposal is awaited. Visit of US delegation at CMPDI(HQ), Ranchi A delegation from US Consulate (lead by Sri Prasenjit Gupta, US Consul for Political and Economic Affairs) visited CMPDI on 15.02.2017 to discuss Indo-US collaborative projects, CBM/ CMM Clearing House functioning and the possibility of future collaboration. Indo-EU Collaboration: Status of On-going Project: a) Introduction of a new underground mining technology at North-Eastern Coalfields in Assam A proposal titled “Introduction of a new underground mining technology at North-East Coalfields in Assam, India” was put forward to the Indo-EU Working Group on clean coal technology for consideration in 2012. The feasibility study to design a suitable mining technology and operation was awarded to Spanish Consortium led by AITEMIN. AITEMIN has already started their work since December 2013. The members from Spanish Consortium visited Tipong UG mine of NEC, Assam during 10th - 14th Feb 2014. During the visit, they had detailed discussion with concerned CMPDI & NEC authorities and collected necessary data/information regarding the aforesaid work. The Feasibility Study Report, as reported by AITEMIN, has already been submitted to the European Commission on 10th Oct.Rs.14 according to the contract terms and recently, the same has been received through M/s AITEMIN. However, the feasibility study report is yet to be made available to CIL/ CMPDI by the European Commission. New Areas of Collaboration During 8th India-EU CWG meeting held in Chennai from 28th -29th Nov. 2013, a presentation was made by CMPDI on reclamation practices, land management and utilization of mine voids for storage of mine water which is generally of good quality. Technical knowhow from EU was sought to bring back the post-mining land use pattern as existing before the mining and utilization of the same for income generation for the local community. A presentation on the requirement of the technical assistance was made by CMD, CMPDI during 9th India-EU CWG meeting held in Germany from 10th - 11th Sept. 2014. However, offer of assistance is still awaited from EU side. Indo-Australian Collaboration Status of On-going Projects: CMPDI has a Memorandum of Understanding (MoU) with Commonwealth Scientific and Industrial Research Organisation (CSIRO) signed on 12th June, 2013 for a period of five years for furthering scientific cooperation. A team from CMPDI visited CSIRO, Australia in July 2015 for identifying possible collaborative areas in the field of clean coal technologies. a) Capacity Building for CMPDI Lab - CMPDI has established a state of the art Coal Bed Methane (CBM) lab that can carry out parametric studies for resource estimation and reservoir characterization for CBM and Shale gas. - In March 2016, S&T Project titled “Capacity building for extraction of CMM Resource within CIL Command areas” was approved by Ministry of Coal (MoC) under Govt. of India S&T funding which is jointly implemented by CMPDI and CSIRO. The project is of three (03) years project duration. A Collaborative Understanding agreement for execution of the Project has been signed between CSIRO and CMPDI on 22nd December, 2016. - In February, 2017, CMPDI organised a thorough discussion on lab equipment in CBM lab with CSIRO and GEOGAS representatives. The later visited CBM Lab and emphasized on planning scientifically correct methodology and implementation of new technology driven equipment to be covered under the above S&T project. The team also visited four drilling sites of CMPDI. One of the boreholes had been selected for desorption studies. The team discussed methodology of desorption studies carried out by CMPDI team at site. b) Ventilation Air Methane (VAM) - CMPDI has formulated a project jointly with CSIRO titled “Abatement and utilization of Ventilation Air Methane (VAM) from working underground degree-III coal mine in India”. The implementing agencies for the project will be CSIRO and CMPDI with BCCL as a sub-implementing agency. Identified project mine is Moonidih Underground Mine in Jharia coalfield of Bharat Coking Coal Ltd. (BCCL). - CIL R&D Board has approved the project in principle with 100% retroactive funding at present and in due course 40% should be reimbursed from National Clean Energy Fund (NCEF) with a directive to reduce duration of project from 42 to 30 months in consultation with CSIRO. CSIRO has agreed to reduce the project duration to 36 months. - The revised proposal was placed in the 26th Meeting of R&D Board of CIL held on 27.12.2016 and the Board advised to place the proposal before the Apex Committee with certain modification. c) SIMTARS engagement in Mining simulation, Explosion testing and Mining safety training - SIMTARS in collaboration with ISM & CIMFR, Dhanbad has been engaged in mining simulation, explosion testing and mining safety training for Indian coal mines through purchase of mining simulators through an R&D Project funded by CIL. - For setting up Virtual Reality Centre (VRS) at ISM, a meeting was held on 23.02.2016 which was attended by Additional Secretary, MHRD and Chairman, CIL. ISM in association with SIMTARS formulated a proposal for setting up VRS at ISM, Dhanbad. - SIMTARS agreed to give details about their requirement, financial involvement, component wise details for different modules for training based on some need analysis in Indian scenario, for establishing the Centre for imparting training of trainers etc. SIMTARS proposal included the following: - Identification of training requirements - Location, site and building work requirements - Mine and infrastructure modelling requirements - Immersive display system requirements - Implementation of logistic requirements - Support requirements - A space for establishing the Centre has been identified by ISM under the Centre of Excellence in Mining Technology. New Areas of Collaboration a) Underground Coal Gasification (UCG): In the India - Australia Energy Security Dialogues held during 8th - 11th February 2016 at Brisbane, for the development of Underground Coal Gasification (UCG), Australian companies like M/s Carbon Energy Limited was asked to look forward for the opportunities coming up in India in view of the recent UCG policy of Government of India. A meeting via Conferencing (Video/Tele) was organized by Austrade / Delhi on 31st May 2016 where M/s Carbon Energy Ltd shared their outcome of Key Seam UCG Technology developed at the Bloodwood Creek UCG Trial Project at QLD in Australia. It was agreed that in view of constitution of Inter-Ministerial Committee (IMC) for the development of UCG blocks, the proponent may approach to the developer to extend technology to them after the awarding of blocks. b) CBM/CMM Development in CIL Command Area: In the India - Australia Energy Security Dialogues held during 8th - 11th February 2016 at Brisbane the Australian technology providers and experts from the Australian Universities came forward for participation in developing CBM/CMM areas under the leasehold of CIL in view of new policy of Government of India permitting CIL to explore and exploit CBM/CMM on commercial lines. University of New South Wales (UNSW) has been requested to provide list of experts and technology providers. c) Review Mining Simulation technologies from Immersive Technologies, Australia: This is technology based software for simulation based training of HEMM. The Immersive Technologies Pty Limited, Australia presented the same at the IMME 2016 in Kolkata. India-Australia Round table Meeting at CIL(HQ), Kolkata On the request of Australian High Commission, a round table meeting was jointly organized by IIT-ISM and CIL at CIL (HQ), Kolkata on 19.11.2016 to enhance Indo-Australian collaboration opportunities on coal mining technology, safety, clean-coal technology etc. with the help of Australian Universities and Institutions. The meeting was attended by a number of Australian firms to showcase their technologies and services for possible future collaboration. Indo-Poland Collaboration New Areas of Collaboration Secretary (Coal), Govt. of India led a delegation comprising of Chairman, CIL, Joint Secretary (JS), MoC, and Adviser, MoC to Poland during 6th to 9th June, 2016 to understand the energy policy of Republic of Poland with particular reference to development of coal, coal mining technologies, reclamation of mined-out areas, capture and uses of Coal Mine Methane (CMM) and technologies for development of underground (UG) mines etc. A 5-membered team of Polish Experts (3 from AGH University, Krakow, Poland & 2 from GIG, Katowice, Poland) visited MoC, CIL (HQ), ECL, BCCL and CMPDI (HQ) along with a team of 4 members from manufacturers of Poland. This visit (4th-7th July 2016) was made by Polish Expert as a sequel to the visit made by an Indian delegation led by the Secretary (Coal) to Poland in the month of June, 2016. In view of the above, a Poland Technology Group (PTG) has been constituted and some of the areas was identified such as Slope stability of overburden dump (using advanced modelling technique), Dry Coal beneficiation, Extraction of remnant coal pillars with surface protection, Pre-drainage of coal mine methane (CMM) and commercial recovery of coal bed methane (CBM) and Control measures for mine fires of Jharia for obtaining the solutions from Polish side. A detailed discussion was held on the identified areas at CMPDI (HQ), Ranchi between Polish Experts and Officials of PTG & other officials of MoC, Coal India Limited/CMPDI, wherein technical co-operation was sought on the identified areas from Polish Experts. A data dossier on the above identified areas has been prepared by CMPDI with necessary technical help from different subsidiaries of CIL and the matter is being taken up at CIL level. In continuation of the collaborative studies, a team of 4 officers (2 from CMPDI and 1 each from CCL & BCCL) visited Poland from 13th -17th February, 2017 to enhance skill in the field of methane extraction and dry coal beneficiation. Indo-Japan Collaboration New Areas of Collaboration a) Dry Coal Beneficiation: M/s Nagata Engg. Co. Ltd. has been requested to provide the detail technology including specification and performance data, commercial availability of the separator and cost thereof with other supports (if any). The response is awaited. b) Slope Stability Monitoring: Dr. Hideki Shimanda of Kyushu University, Japan has been requested to share their technical expertise and valued opinion for Indian geo-mining conditions. Reply is awaited. c) Subsidence Measurement & monitoring using DINSAR Technology: J-Coal delegation led by Mr. Masafumi Uehara visited CMPDI in August 2016 and presented the possible use of DINSAR technology for subsidence monitoring in Jharia Coalfield. The delegation also visited the subsidence sites at BCCL. On query whether a real time monitoring and subsidence prediction was possible through this technology, Mr. Uehara informed that real time monitoring, at present, was not possible through this study as the minimum interval for this study can be one and half months, which is the re-visit time of the satellite to acquire the data and they do not have expertise in subsidence prediction presently. Under such circumstances, the project is kept in abeyance. Indo-Russian Collaboration The 21st Meeting of India-Russia Joint Working Group on Energy and Energy Efficiency was held on 7th September 2016 at Delhi. Indian side expressed its interest in technical cooperation with Russian companies in the field of Underground Coal Gasification (UCG) and resource assessment of Coalbed Methane (CBM) in distressed conditions. Russian side agreed to pass on the information to concerned Russian companies. Indo-Belarus Collaboration Two proposals regarding trial run of 350 Tonne dump trucks of Belaz make and technology for North Eastern Coalfields by M/s NIVA of Belarus were received from Ministry of Coal through CIL on 14.03.2017. Necessary comments of CMPDI on the above proposals have been sent to CIL on 20.03.2017 for onward communication. 13. COAL VIDESH DIVISION I. INITIATIVES FOR ACQUISITION OF COAL ASSETS ABROAD (A) Activities of Coal India Africana Limitada (CIAL), Mozambique Coal India Africana Limitada (CIAL), a wholly owned subsidiary of CIL was granted prospecting licenses for two leaseholds, covering a total area of 224 sq. km. by the Ministry of Mineral resources, Government of Mozambique. Based on exploration activities carried out in the license areas from 2012 to 2014, 170 sq.km area having no occurrence of coaly horizons till a depth of 500m, was surrendered to the Government of Mozambique. The remaining 54 sq.km. area was retained for which new licenses were issued. Based on Geological Report of the license areas, Mineability Study to assess the techno-economic viability of mining of the remaining 54 sq. km. was conducted in 2015-16. The Mineability Study revealed that the leasehold areas are not techno-economically viable for commercial mining. Based on this outcome of the study, CIL Board approved complete surrendering of the prospecting licenses. Pursuant to these directives of the Board, applications for surrendering the remaining 54 sq.km. of the leasehold area for prospecting was submitted to the National Institute of Mines (INAMI), Government of Mozambique. The Government of Mozambique vide their letter dated 16th August 2016 accepted the application for relinquishment of the said licenses. (B) Acquisition of coking coal assets abroad Pursuant to the directives of the CIL Board, initiatives for acquisition of coking coal assets, with particular focus on Australia being the prime destination for sourcing coking coal to India, are in process. As part of the preparedness towards acquisition initiatives, empanelment of Merchant Banker (MB)/ Investment Banker (IB) has been done to render assistance in acquisition process. II. REVIVAL OF FERTILIZER PROJECT(S) (A) Setting up of natural gas based ammonia-urea complex at Gorakhpur, Sindri and Barauni In line with the decision in a meeting at PMO on 07.04.2016, a Joint Venture Agreement was signed on 16th May 2016 between CIL and NTPC (shareholding 50:50), to set up new natural gas based ammonia-urea complexes at the premises of closed fertilizer units at Gorakhpur & Sindri of FCIL and HFCL at Barauni. Hindustan Urvarak & Rasayan Limited (HURL) was registered on 15th June 2016 as a Joint Venture Company of NTPC and CIL, with IOCL to join subsequently. The Supplementary Agreement to the JVA was signed amongst CIL, IOCL, NTPC, FCIL and HFCL on 31st Oct, 2016 with shareholding of CIL - 29.67%,NTPC - 29.67%,IOCL - 29.67% and FCIL/HFCL(combined) - 10.99%.The Pre-Feasibility Report for Gorakhpur and Sindri was prepared by Engineers India Limited(EIL) and that for Barauni was prepared by Projects Development India Ltd(PDIL). The Board of Directors of HURL decided to set up ammonia-urea complexes at aforementioned sites through Lump-Sum Turnkey (LSTK) mode and PDIL was appointed as consultant for rendering assistance in the entire process. The pre-qualification process for LSTK contractors has been completed through a global EOI process. Thereafter, NIT for selection of LSTK Contractors for setting up of the ammonia-urea plant at each site was prepared and issued after due approval of the HURL Board to the pre-qualified LSTK contractors for each site. Concurrently, pre-project activities are in progress in all the three sites. Geotechnical investigation, topographic survey, water availability studies and EIA/EMP preparation have been carried out. The Hon'ble Prime Minister has laid the foundation stone at Gorakhpur plant site on 22nd July, 2016. (B) Setting up of coal based ammonia-urea complex at Talcher In line with the CCEA decision of August 2011, a Joint Venture company of RCF, GAIL, CIL and FCIL, named Talcher Fertilizers Limited (TFL),has been formed to set up an Ammonia-Urea plant at the site of the defunct fertilizer plant of FCIL at Talcher through Surface Coal Gasification technology. The shareholding of the Promoter companies is RCF - 29.67%, CIL -29.67%, GAIL - 29.67% and FCIL - 10.99%. After extensive deliberations for selection of coal gasification technology licensors at PMO, NITI Aayog, Dept. of Fertilizers, etc., it was decided in a meeting chaired by Hon'ble Minister (Chemicals and Fertilizers) on 31.08.2016 to float a fresh Expression of Interest (EOI) for pre-qualification of technology licensors for coal gasification technology. The consultant, PDIL, floated EOI on behalf of TFL on 14th September, 2016 and responses received were evaluated and recommendations placed for approval of TFL Board. As on date, the TFL Board has accorded 'in principle' approval to the Techno-Economic Feasibility Report (TEFR) with the stipulation that investment decision would be taken after establishment of financial viability through a Detailed Feasibility Report (DFR) after due approval of promoting companies. 14. MASTER PLAN FOR DEALING WITH FIRE, SUBSIDENCE AND REHABILITATION The Master Plan for dealing with fire, subsidence and rehabilitation in the lease hold of Bharat Coking Coal Limited (BCCL) and Eastern Coalfields Limited (ECL) was approved on 12th August 2009 by Govt. of India with an estimated investment of Rs.7,112.11 crores for Jharia Coalfields and Rs.2661.73 crore for Raniganj Coalfields. Implementation period has been delineated as 10+2 years. High Powered Central Committee meetings were conducted under the chairmanship of Secretary (Coal), MoC to review the activities of implementation of Master Plan. Fourteen meetings were conducted so far; last meeting was held on 13/02/2017. Jharia Rehabilitation and Development Authority (JRDA) is the implementing agency for rehabilitation of non-BCCL people under Master Plan whereas Asansol Durgapur Development Authority (ADDA) a state Govt. organization has been identified as implementing agency for Rehabilitation of Non-ECL houses. A. Summarized Status of Implementations of Master Plan in the lease hold of Eastern Coalfields Ltd. Seven Surface Fires were identified in the approved Master Plan have been doused by blanketing with thick layers of earth to save the life and properties of the inhabitants. Demographic Survey work has been completed for all 126 locations out of 141 identified locations as 10 locations having no habitation and 3 locations have only ECL population. In 2 locations survey work could not be completed due to public agitation. The final list has already been published which contains 44598 households. Photo Identity Card (PIC) has been distributed to 43087 persons out of total 44598 persons. Most of the ECL employees residing in 3 endangered locations have been shifted and remaining persons were allotted quarters and are in the process of shifting. Chief Secretary, Govt. of W.B. in a meeting with Secretary, MOC on 24.03.2017 advised ADDA to take necessary action to finalize the Demographic Survey and valuation latest by 23/05/2017.According to the approved Master plan, about 896.29 ha. (2214 Acres) land would be required for resettlement of non-ECL families. In the meeting held on 24.03.2017 at Nabanna under the Chairmanship of Chief Secretary, Govt. of WB where in it was decided that ADDA, ECL & CMPDIL will jointly find out the possibilities of large chunk of land to be used for rehabilitation purpose within a month time. It was also discussed that 15% of population under rehabilitation scheme are to be accommodated in Durgapur for which Bengal Aerotropolis Limited (BAPL) land would be made available. For rest 85% who are to be rehabilitated in Jamuria, Ranigunj, Asansol and Baraboni blocks land in big chunks has to be identified. W.B. Housing Board (State Government of West Bengal has now approached to the MOC to accord permission to change the responsibility to Housing Dept, Govt. of W.B. in place of ADDA) issued work order for construction of 160 flats on 27/02/2017 for an amount of Rs.8,83,49,173.00 (' Eight Crores Eighty-Three Lakh Forty-Nine Thousand One Hundred Seventy-Three only) at Bijoynagar Mouza of Jamuria Block. Construction of houses has already been started from 10.03.2017. DPR for construction of 2144 flats (which includes earlier floated tenders for construction of 160 houses) on a land of 26.08 Acres at Bijoynagar Mouza, comprising 16 flats in each block having built up area of 39.13 Sq m per flat has been prepared by Housing Board on 08/03/2017 with an estimated cost of Rs.164.47 Crores. Housing Board has also planned to construct 7000, 10000, 13000 and 16000 houses in the years 2017, 2018, 2019 & 2020 respectively for implementation of the Rehabilitation Project for shifting of people residing in the unstable locations, within the prescribed time schedule. i). Diversion of National Highway(NH-2): National Highway Authority of India (NHAI) suggested for stability test to be carried out for the unstable part of NH-2 by other agency. Work for Geotechnical investigation for stability analysis has been awarded to CIMFR, Dhanbad in March 2016. In the 14th HPCC meeting ECL informed that about 300m Stretch of NH-2 is under unstable area and therefore, unsafe. Further a study was carried out by CIMFR in which voids were found at a low depth that may cause occurrence of potholes. The report has been sent to NHAI on 07.02.2017 as well as forwarded to DY. DG(EZ), Sitarampur on 23.02.2017 for information. In the 14 th HPCC meeting it was decided to constitute a committee under the Chairmanship of DGMS with representatives from NHAI, CIMFR, ECL and ADDA to examine and recommend action to be taken by NHAI. Accordingly, on 20.03.2017 a meeting was held at DGMS, Office Sitarampur under the Chairmanship of Dy. DG(EZ) where representatives of ECL, CMPDIL, NHAI and ADDA were present. It was further suggested that NHAI should approach CIMFR to get idea of blind backfilling and certification of action required for proper stability from CIMFR. (ii). Diversion of District Board (DB) Roads. The diversion of DB Road at Mohanpur Colliery of Salanpur area is not required, as the proposed route is coming under mining operations. The existing road between Amdiha and Samdih via Lalgunj will serve the purpose of connection. In the proposed diversion route of Gorangdih Begunia colliery 3.512 acres of land is required out of which 3.040 acres is Raiyati land and 0.472 acres being WB Govt. vested land. For diversion of this DB road at Jamgram mouza under Barabani PS, public notice has been issued. The District Level Purchase Committee has taken up the issue regarding purchasing of Raiyati land. For diversion of DB road at Ratibati colliery 4.847 acres land is required (1.207 acres of ECL land+ 0.370 acres of Raiyati + 3.270 acres of DGCA land). NOC for ECL land was placed in the 295th meeting of Board of Directors held on 01.02.17 for according approval. Board directed to obtain NOC from MOC. Proposal to obtain clearance from MOC has been sent on 22.02.2017. iii) Diversion of Railway line: Andal-Sitarampur Railway line: RITES has submitted the 'Revised FSR' to Eastern Railway authority for in- principle approval of the same. In 14th HPCC meeting representatives of Railways were asked to direct concerned officers of Eastern Railways to examine the revised FSR submitted by RITES on 10.01.2017 for taking further necessary action. Sr. Divn. Operation Manager, Asansol has informed that the revised FSR has been examined and found the same would be acceptable subject to compliance of certain conditions. ECL has suggested some amendments in the Revised FSR. The suggested amendments of ECL was submitted separately by M/s RITES to Eastern Railway authority on 01.03.2017 for consideration. iv). Diversion of Indian Oil Corporation Limited (IOCL) pipeline: IOCL informed that second tier survey report has been submitted by National Institute of Rock Mechanics (NIRM), Bangalore which is under examination. IOCL informed that regular monitoring is being done by them to detect any deflection of pipe line due to subsidence. B. Summarized Status of Implementations of Master Plan in the lease hold of Bharat Coking Coal Ltd. Reduction in Fire area: The coal mine fire survey/ study was instituted by BCCL through National Remote Sensing Centre (NRSC), ISRO, Department of Space, Hyderabad for delineation of surface coal fires in Jharia Coalfield. NRSC has submitted their report in which they have concluded that the present fire area in the coalfield is only 2.18 sq.km. which includes both over burden dump fire and active fire. In Master Plan total surface area affected by fire described as 8.9 sq.km. NRSC has deduced these findings from the State of Art, Satellite based technology. Action is being taken by BCCL for dealing with fire as stipulated in the Approved Master Plan. NRSC has been requested to repeat the satellite TIR survey. NRSC has confirmed for the survey in 2017. The finding of NRSC will be submitted after the survey is completed. BCCL would improvise the fire action plan for speedier liquidation of fire area. BCCL has signed the MOU and sent to NRSC.Work order has been given to NRSC by BCCL. As per Master Plan total 54159 families' in 595 nos. sites to be surveyed. CIMFR, ISM, whiz Mantra and JRDA has completed survey of 595 sites for 91879 families of encroachers, survey of private houses to be started. 3360 houses have been constructed in Belgoria Rehabilitation Township”JhariaVihaf in which 1923 non -families(encroachers) are shifted from affected areas. Construction of 6992 units are in progress out of which 992 units are in completion stage. In order to shift BCCL employees residing in fire affected areas 6668 houses have been built by BCCL in non-coal bearing zone and 2852 families from fire & subsidence places have been shifted to these houses. Further construction of 9184 units by BCCL is under progress and in different stages of completion. As per Master Plan 2730 Acres of land would be required for resettlement of non-BCCL families for which JRDA is pursuing for acquisition of land and proposals are now at different stages. NOC of 86.44 acres of vacant land in Bhuli Township and 849.68 acres of non-coal bearing land in and around Belgoria Township belonging to BCCL has been given by MoC which has been communicated to JRDA along with all the required mouza plans for developing new Townships by JRDA. Coal India Ltd has infused Rs.161.62 crores to ECL and Rs.1089 crs to BCCL till March 2017 for implementation of Master Plan. 15. ENVIRONMENTAL MANAGEMENT 15.1 Environmental Impact Assessment (EIA)/Environmental Management Plan (EMP) EIA/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. During the year 2016-17, CMPDI has prepared a total of 15 Form-I and formulated 22 Draft EIA/ EMPs. 17environmental clearances were also obtained from MoEF for different Projects/Group of Mines, Washeries and Sand mining projects of CIL during the year 2016-17. 15.2Pollution Control Measures and Their Efficacy Coal India has been keeping utmost importance in protecting environment by practicing and following sustainable mining so as to ensure that the mining operations has least impact on environment. The various Pollution control measures and initiatives are taken up concurrently with mining operations for maintaining acceptable/permissible limits of major physical and chemical attributes of environment namely air, water, hydrogeology, ground vibrations, noise, land & nearby population. (A) Air Pollution Control Measures: To control and reduce dust generation during drilling, blasting, loading and Coal transportation, Coal India Ltd. has taken up various initiatives based on the Environmental Management Plans (EMP) which were already prepared before commencement /enhancement of production of coal mines. This EMP is prepared keeping in mind the impact on existing environment and forest due to coal mining projects through Environment Impact Assessment (EIA) study of each project. Suitable water spraying systems for arresting fugitive dust in roads, washeries, CHPs, Feeder Breakers, Crushers, coal transfer points and coal stock areas are being installed. Mist spray systems have been introduced along conveyor routes, transfer points and on bunkers. Mobile water sprinkling has been provided in all the haul roads of OC mines. In addition to these, the projects are enhancing the water sprinkling through engagement of contractual water tankers. Automatic sprinklers have also been installed in CHPs. Some of the important initiatives are also mentioned below: a) Mobile sprinklers have been installed along haul roads to control dust generated by truck and dumpers movements. b) Optimum level of loading of coal in trucks and railway wagons to avoid spillage on roads and rail. c) Covering of coal trucks by tarpaulin is being followed to avoid spillage of coal particles during transport. d) Blacktopping, repairing and strengthening of haul roads are regularly and scientifically carried out. e) Plantation in surroundings of active mining areas and along the hauls roads are carried out to create green buffers/ green belts in and around the mines. f) In order to reduce the dust pollution due to road transportation eco-friendly mode of transport are being introduced. Transportation to thermal power stations, who consume more than 80% of thermal coal are carried out by rail / series of belt conveyors. Rail heads are constructed and made available nearer to mine so as to reduce road transportation. CIL have constructed / are constructing integrated CHP for rapid loading of wagons and trucks. g) Tube conveyors mode of transportation is also being introduced in some mines for transportation of coal to thermal power plants. The wall/sides of CHPs are also covered by side cladding with GI Sheet to control pollution at source. h) To contain dust emission at source itself, dust extractors / wet drilling systems are being undertaken. i) Controlled blasting and habitation away from the mines have been introduced as far as possible. j) Modern technologies like Surface Miners and Continuous Miner at different subsidiaries of CIL which generates lesser air borne pollution as compared to conventional mining have been introduced to the system. During the year 2016-17, CIL has produced about 48.89% (i.e. 255.027 MT) of its production from open cast mines through Surface miners. Continuous miners contributed about 4.689 MT in the production from underground mines. k) The quality of Ambient air in and around the mine site is being monitored fortnightly. The required and stipulated numbers of ambient air quality monitoring stations are maintained, as per environmental rules and regulations of Environment (Protection) Act, 2006, and its reports are regularly submitted to SPCBs and MoEF&CC. l) The concept of 'Continuous Ambient Air Quality Monitoring Stations' (CAAQMS) are being introduced and are installed / being installed in large mines of CIL. Continuous Ambient Air Quality Monitoring Stations have been installed at 4 locations in SECL and 01 location of WCL. (B) Mine Water Management: Water which pumped out from the underground and open cast mines are being contaminated with suspended particles. Some small quantity of water being contaminated during washing and cleaning of HEMM. CIL also takes initiative by treating this water. The treated water is being supplied to the local villages after mine consumption. Quality of the final effluent is monitored in terms of the relevant Indian standards. - Domestic Effluent Treatment Plant (DETP): The domestic effluent from major residential colonies is treated in DETP either by activated sludge method or by extended aerated lagoons. - Mine Discharge Treatment Plants (MDTP) are installed in mines for treatment of mine water. Strata seepage water in mines first gets accumulated in the mine sump which provides for initial settlement of suspended particles. The supernatant water from the sump is then pumped out on surface and treated in surface sedimentation tank, which provides for second stage settlement. The treated mine water is then used partly within the mine premises for dust suppression, fire fighting, plantation, washing and further treated as per drinking water standard for supply to company township and nearby villages through pressure filter / RO, etc. After ensuring maximum re-use within and around mine premises the excess treated mine pumped out water is released onto local nalla / streams which is used by the surrounding local population specially for agricultural use. - In order to assess the impact of mining activities on ground water, quarterly monitoring of ground water levels is being carried out in and around the coal mines covering the buffer zone (i.e.10 Kms radius). Further, recharging of ground water is also taken up within mine premises as well as in nearby villages through rainwater harvesting, digging of ponds/development of lagoons, de-silting of existing ponds/tanks etc. - Regular monitoring of mine effluent, workshop effluent, and domestic effluent is carried out every fortnight as per Environment (Protection) Rule - 2006. Reports of the same are regularly submitted to SPCBs and MOEF. (C) Noise Pollution Control Measure: For control of noise pollution, following measures are adopted: i) Proper maintenance of equipment to minimize vibration ii) Green belt provided around the mine as well as residential area. iii) Controlled Blasting & blasting in only day time. iv) Use of Surface Miner, Continuous Miner & High Wall mining which extract coal without blasting. v) Ear Muff or Ear Plugs provided to Workers at highly noisy areas (D) Land Reclamation: Reclamation of the mined out areas and the external OB dumps is a major environmental mitigatory activity taken up by Coal India. In all new mines reclamation of mined out areas are being done as per the Environmental Management Plan and Mine closer plan which are approved by MoEF&CC. Back filling of the OB material in the mine voids is part of the mining operation cycle. Topsoil preservation, storing and use in the plantation areas of the reclaimed areas are being done in the opencast mines wherever necessary. Concurrent reclamation and rehabilitation of mined out areas (subject to technical feasibility as per geo-mining conditions) are taken for gainful land use. Opencast mines are filled up with overburden extracted during the process of extraction of coal and after technical reclamation is completed plantation is carried out which is termed as biological reclamation. - Eco-restoration: For effective Bio- reclamation of disturbed land, scientific studies are carried out to select suitable species of plants for each coalfield and sustainable sequence of reclamation from grass to shrubs, to trees. Forest Research Institute (FRI) have been engaged by CIL for sharing their expertise in the field of eco-restoration in the reclaimed areas. ECO restoration sites are developed in Damoda, Tetulmari of BCCL, with technical guidance of FRI. - Eco-park in Reclaimed land: Eco Parks have been developed in many of the mined out areas of CIL like Gunjan Park of ECL, Ananya Vatika of SECL, Nigahi of NCL, Saoner of WCL, Kayakalp Vatika, Rajarappa Eco Park in CCL etc. - Tree plantation: Green belt is developed through extensive tree plantation programme every year by the subsidiaries of Coal India Ltd. Avenue plantation, plantation on the OB dumps, plantation around mines, residential colonies, and available land is undertaken in existing as well as new projects. The subsidiaries of CIL have planted around 94.015 million of trees covering an area over 37557.458 Ha. till March 2017. - Monitoring of Reclamation: CIL introduced state-of-the-art Satellite Surveillance to monitor land reclamation and restoration for all opencast projects. The land reclamation and rehabilitation operations are being monitored by Satellite Surveillance. 50 major OCPs excavating more than 5 Mm (Coal+OB) per annum are being monitored every year while remaining OCPs excavating less than 5 Mm (Coal+OB) per annum are being monitored every 3rd year. This gives a clear picture of reclamation, which otherwise is difficult to accurately estimate. The study during 2016-17 shows that all the major OCPs (excavating > 5 Mm (Coal+OB) per annum) have reclaimed area of 77.59% and active mining area is only 22.41% of the total excavated area. In addition, CIL is conducting vegetation cover mapping through satellite surveillance in every 3 years. - Mine Closer Plan (MCP): Mine closure plan is an integral part of the project report prepared by CMPDIL for coalmines. This progressive mine closure plan also forms a part of the EIA/EMP prepared and submitted to MOEF for Environmental Clearance. The progressive reclamation of mined out areas inbuilt in the project cost is implemented accordingly. After exhaustion of reserves, statutory obligations in respect of closure are also followed. CIL is practicing mine closure very effectively. CIL is committed for restoration of abandoned / mined out areas in a socially acceptable & environment friendly manner. As on March 2017, out of 454 identified mines for 453 mines were prepared, 445 MCP were approved by concerned Subsidiary board, 422 numbers of Escrow account were opened and an amount of Rs 5487.13 Cr deposited in this account. - Strive for continual improvement in environmental performance by setting targets, measuring progress and taking corrective action. CIL has engaged Indian Council of Forestry Research & Education (ICFRE), Dehradun for Environmental Audit of 20 no. OC Mines of CIL which is intended for third party inspection, verification of the existing levels of pollution vis-a-vis the laid down standards and to delineate the compliance status of major projects in addition to the inspection carried out by the statutory authorities like CPCB/SPCB etc. ICFRE has submitted final report for 3 mines of MCL and 01 mine of BCCL. ICFRE is conducting study for the remaining mines. CIL has also engaged Rain Forest Research Institute for preparation of Bio -diversity Management Plan, Regional Wild life plan and carrying capacity study for Makum coalfields of Assam. CIL has signed MoU with National Environmental Research Institute(NEERI), Nagpur to carry out studies, monitoring and collaborative research work for “Sustainable Coal Mining in CIL'. NEERI is also studying on the effectiveness of supplying de-shaled/dry-beneficiated / washed coal (reduction in ash content by 5-6%) to power plants following all pollution control measures. NEERI will submit environment management plan for mitigation of impact on regional environmental quality due to supply of deshaled / dry -beneficiated coal to power plants in context of prevailing pollution control practices. (F) Solar Energy/ Energy efficient Initiative by Coal India Ltd: CIL has signed MoU with Energy Efficiency Services Limited (EESL) to promote energy efficiency provisions in CIL and its subsidiary companies. CIL has taken steps for using LED lights substituting CFL lights To promote, Green Initiatives taken by GoI, CIL has submitted Green Energy Commitment letter to MNRE for developing 1000 MW Solar Power Projects. For implementation of these projects, CIL has signed MoU with Solar Energy Corporation of India (SECI). In the 1st phase, tender was floated for setting up of 2x100 MW Solar PV Project in the state of Madhya Pradesh. But, due to current downward trend in prices of solar projects and availability of land in Madhya Pradesh for Solar park the tenders were cancelled and SECI was advised to go for retendering of above projects. CIL's initiatives has resulted in installation of 3 MW(Approx) capacity in CIL HQ and its Subsidiary Companies. 15.3 Management System Standards CIL HQ has got certification against ISO 9001 and ISO 50001 (Quality Management System and Energy Management System) from Bureau of Indian Standards and implementation / integration of Environment Management System (ISO 14001) is under progress. As on 31st March'2017 two of our subsidiaries, NCL and MCL are certified for their companywide Integrated Management System (ISO 9001, ISO14001 and OHSAS 18001) and ECL is likely to be certified shortly. CCL, BCCL and WCL are in the process for implementation of company wide Integrated Management System (ISO 9001, ISO 14001 and OHSAS 18001). CMPDIL HQ and its seven RIs are certified for ISO 9001:2015. 15.4 Assessment of Impact of Coal Mining in different coalfields Vegetation cover mapping of 6 coalfields viz. Jharia, Talcher, Bishrampur, Wardha, Kamptee and Makum have been completed during the year 2016-17 for assessing the regional impact of coal mining on land/vegetation cover in the span of 3 years to take remedial measures required, if any. 15.5 R&R Policy of CIL, 2012. With changing aspirations of Project Affected Persons (PAPs) and for faster acquisition of land, Resettlement & Rehabilitation Policy of CIL was revised in 2012 making it liberal and PAP friendly with more flexibility to the Board of Subsidiary Companies. The Policy provides for conducting baseline socio- economic survey to identify PAPs enlisted to receive R&R benefits as well as to formulate Rehabilitation Action Plan (RAP) in consultation with PAPs and State Govt. The R&R Policy of Coal India Ltd., provides for payment of land compensation and solatium, employment or lump sum monetary compensation and annuity, compensation for homestead, lump sum payment in lieu of alternate house site, subsistence allowance to each affected displaced family etc. R&R Policy of CIL is being revised specifically in background of the RFCTLARR Act of 2013. 16. COAL BED METHANE (CBM) / COAL MINE METHANE (CMM) 16.1 Collaborative commercial development of CBM in Jharia&Raniganj coalfields by the consortium of CIL & ONGC. The Govt. has allotted two CBM blocks in 2002 namely Raniganj North CBM Block in Raniganj Coalfield and Jharia CBM Block in Jharia Coalfield to the consortium of ONGC-CIL on nomination basis for commercial development of CBM. CMPDI is implementing the projects on behalf of CIL. ONGC is the Operator for both CBM blocks and carrying out the jobs as per contractual agreement with the Govt. of India. On completion of CIL part of work programme by CMPDI and supplemented by appraisal activity by ONGC has resulted in formulation of Field Development Plan (FDP) by the Operator i.e. ONGC. The FDPs for both the CBM blocks were approved by the Government of India in July, 2013. Petroleum Mining Lease (PML) for Jharia CBM block has been granted by Govt. of Jharkhand in July'2015, and environment clearance for Jharia Block is likely to be granted soon. Model Co-development Agreement for Simultaneous Coal Mining and Coalbed Methane (CBM) Operations in the Overlapping Areas has been issued by MoP&NG in February, 2017. Matter of Co-development agreement in regard to Jharia CBM Block in Parbatpur Central Coal Block overlapping for optimum exploitation of coal by SAIL and CBM by ONGC (operator of the CBM block) is under deliberation between SAIL and ONGC. In the Steering Committee meeting held on 30th March, 2017 at DGH it has been agreed that ONGC will submit revised FDP and cost estimate taking in account all constraints and accordingly in the Operating committee, it will be deliberated for consideration and further perusal for competent approval. 16.2 CBM related studies: CMPDI and GSI are carrying out studies related to “Assessment of Coalbed Methane Gas-in-Place Resource of Indian Coalfields/Lignite fields” in selected boreholes being drilled under Promotional Regional exploration since X Plan period and XI Plan period respectively under Promotional Regional Exploration (PRE) funding. A total of 60 boreholes (40 by CMPDI and 20 by GSI) have been taken up for CBM specific data generation during the XII Plan. Studies have been completed in forty (40) boreholes by CMPDI and in Nineteen (19) boreholes by GSI. During the year 2016-17, studies has been done in eight (8) boreholes by CMPDI. CMPDI & GSI have completed CBM specific studies in 130 boreholes (92 by CMPDI & 38 by GSI) since commencement of the work. During the year, one report based on CBM related studies has been submitted by CMPDI for Gondbahera Ujheni block, Singrauli Coalfield. 16.2.1S&T Project on “CBM Reserve Estimation for Indian coalfields” S&T project on “CBM Reserve Estimation for Indian Coalfields” has been approved under EoI of Coal S&T project in Feb.Rs.14. The project is of 3 years duration with completion schedule of March, 2017 for which time extension has been considered in SSRC meeting held on 23rd Mar.Rs.17. IIEST (BESU), Shibpur is the main implementing agency and NGRI, Hyderabad; TCE, Kolkata and CMPDI are co-implementing agencies. An area in South Karanpura Coalfield has been taken-up for 2D/3D Seismic survey by NGRI. 75% of study area has been covered by 2D Seismic survey in South Karanpura Coalfield and balance work was taken up by NGRI in January, 2017. 3D Seismic survey is likely to be undertaken in May, 2017. 16.3 Shale gas related studies: CMPDI is carrying out studies related to “Assessment of Shale Gas-in-Place Resource of Indian Coalfields/ Lignite fields” through boreholes being drilled under promotional exploration since XII Plan period under PRE funding of Ministry of Coal. This study create the database for assessment of shale gas potentiality and facilitate delineation of more blocks for Shale Gas development. CMPDI was to carry out shale gas specific data generation in 25 boreholes during XII Plan period under PRE funding. For the plan period shale gas studies have been completed by CMPDI in twenty five (25) boreholes. During the year 2016-17, target has been achieved by completing the studies in five boreholes by CMPDI. 16.3.1S&T Project on “Shale gas potentiality of Damodar Valley basins of India” S&T project on “Shale gas potentiality of Damodar basin of India” is under implementation by NGRI, Hyderabad as the principal implementing agency and CMPDI, Ranchi & CIMFR, Dhanbad as sub implementing agencies. The project completion schedule has been revised to May, 2017 with total project cost of Rs.20.38 crore. The project objective is to evaluate potentiality of Shale gas in Damodar basin through integrated geophysical, geological, geo-chemical and petro-physical investigations.”Automatic Porosimeter cum Permeametef instrument supplied by M/s Vincy Technologies Inc., France has been commissioned at CBM, Laboratory, CMPDI. NGRI along with CMPDI & CIMFR selected Rangamati B block (Tumni & Kanchanpur Sector), Raniganj Coalfied and 3D seismic survey in 2.4 sq km out of total 3.2 sq km area has been completed. Interpretation of captured data is in progress. Balance 3D Seismic survey work is likely to be taken up by NGRI. On the findings from 3D seismic survey, CMPDI will take up its part of committed activities i.e. drilling of boreholes. 16.4 Commercial development of Coal Mine Methane (CMM) Ministry of Coal vide Office Memorandum dated 29th July, 2015 has permitted CIL to explore and exploit CBM from its areas under coal mining lease allotted to Coal India Limited (CIL). Earlier, MoC has appointed CMPDI as Nodal Agency for development of CMM in India. Successful implementation of the Demonstration Project at Moonidih (Jharia Coalfield) of BCCL has already proved the efficacy of the process and to expand the scope of development of CBM in CIL areas. Further studies for “Assessment of CMM Potentiality in CIL Command Area” have been undertaken. MoP&NG vide notification dated 3rd November, 2015 has issued guidelines for exploration and exploitation of CBM by CIL and its subsidiaries on nomination basis from coal bearing areas for which they possess mining lease. It is under modification by MoP&NG considering applicability of the ORD Act and PNG Rules within coal mining leasehold areas. Assessment exercise for ECL command area and BCCL has been undertaken. These prospective CMM blocks are: 1) Raniganj CMM Block (ECL Area): An area of about 57 Sq.Km. under mining leaseholds of Sripur, Satgram and Kunustoria Areas has been delineated for commercial development of CMM for which collateral activities have been initiated by CIL/CMPDI/ECL. A prognosticated resource of CMM around 1.17 BCM may be available for extraction. Techno-economic studies have been undertaken by International Expert. Based on this, detailed project report will be prepared. 2) Jharia CMM Block (BCCL Area): A block of about 25 Sq.Km. under mining leaseholds of Kapuria, Moonidih, Jarma, Singra blocks has been delineated for commercial development. A prognosticated resource of CMM resource of around 4 BCM may be available for extraction. Techno-economic studies have been undertaken by International Expert. Based on this, detailed project report will be prepared. “Reservoir Modeling & Techno-Economic Feasibility Study for Commercial Development of Coal Mine Methane (CMM)/Coalbed Methane (CBM)” within mining leasehold areas for CMM blocks in (a) Raniganj Coalfield (ECL areas) and (b) Jharia Coalfield (BCCL areas) have been awarded to M/s Advance Resources International Inc., USA in January, 2017 and work is in progress. It is proposed to consider available drilling technologies (vertical drilling, directional, horizontal & its combination on case to case basis) and completion methods in such a way that the CBM operation can also be simultaneously taken up with the coal mining operation within overlying seam. 3) Pre-drainage of methane at Moonidih mine (BCCL), Jharia Coalfield Pre-drainage of methane at Moonidih mine (BCCL) in working Seam XVI has been proposed to recover methane to enhance production and safety. Recovered gas will also be gainfully utilized. Expression of Interest (EoI) has been invited to identify suitable technology provider consultancy organization having experience in development of CBM & CMM for successful implementation of gas drainage from gassy coal seams from concept to commissioning and its utilization on Turn Key Basis i.e. Built Own Operate model or other applicable model against which 15 EoIs were received which is under evaluation. 16.4.1S&T Project on “Capacity Building for Extraction of CMM Resource within CIL Command Areas” S&T project on “Capacity Building for Extraction of CMM Resource within CIL Command Areas, being jointly implemented by CMPDI and CSIRO, has been approved under Coal S&T project of MoC. The project is of 3 years duration with effect from 23rdMarch, 2016. The Collaborative Understanding for execution of the Project has been signed between CSIRO and CMPDI on 22nd December, 2016. CSIRO team visited CMPDI from 8th to 13th Feb.Rs.17 and again on 15th to 17th Mar'17. They will be visiting again in JulRs.17. Desk study is in progress. 16.5 Project on VAM A project proposal on mitigation/utilization of Ventilation Air Methane (VAM) to be taken up at Moonidih (Jharia coalfield) under CIL R&D and National Clean Energy Fund (NCEF) of Government of India is under consideration with CSIRO, Australia and CMPDI as the implementing agencies and BCCL as sub implementing agency. The project has been approved in principle by CIL(R&D) Board and will be taken up upon competent approval of the Government. 16.6 CMM/CBM Clearing house in India A CMM/CBM clearing house was established at CMPDI, Ranchi under the aegis of Ministry of Coal and USEPA on 17th November, 2008. The clearing house is functioning as the nodal agency for collection and sharing of information on CMM/CBM related data of the country and help in the commercial development of CMM Projects in India by public/private participation, technological collaboration and bringing financial investment opportunities. The clearing house has been established with financial support from Coal India Ltd. on behalf of Ministry of Coal and US EPA. The 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. After completion of initial three years term it was extended for another three years. USEPA has further granted extension of additional term i.e. three years till 2018. An International Workshop on “Best Practices in Methane Drainage and Use in Coal Mines” was jointly organized by CIL-CMPDI, GMI-US EPA, UNECE under aegis of GoI-MoC from 9thto 10th March, 2017 at Ranchi. Presentations are available at http://www.unece.org/index.php?id=45172#/. 17 ACTIVITIES TAKEN UP BY CBM LABORATORY CBM Laboratory established at CMPDI has enhanced its capacity and added additional facility of Automatic Porosimeter cum Permeameter (Make Vinci Technologies, France) to generate producibility data on CBM recovery. CBM Lab has carried out CBM specific data generation in 8 boreholes & Shale gas specific data generation in 5 boreholes during 2016-17. Relevant studies like Adsorption Isotherm (AI) studies for 51 numbers of coal samples, Total Organic Carbon (ToC) analysis for 66 number of Shale samples have been completed. Further, analysis of 1232 mine air samples received from different collieries of CCL and 39 mine survey sample analysis of SECL have been completed and results submitted. 18 COMMERCIAL DEVELOPMENT OF UNDERGROUND COAL GASIFICATION (UCG) MoC has constituted Inter Ministerial Committee (IMC) for identification of areas for UCG on the line broadly similar to the existing policy of CBM development. Potential blocks in coal and lignite were identified and considered in the IMC for the commercial development of UCG preferably by PSUs. Identified Coal blocks for UCG development are in Wardha Valley Coalfield (Jogapur-Sirsi), Sohagpur Coalfield (Maiki (North)-Maiki-Merkhi, Pathora, Chainpa), Tatapani-Ramkola Coalfield (Reonti-West), Yellendu Dip,SCCL and Bandha, Singrauli Main basin. A consultant has been engaged for “Formulation of Bid Document & Model Contract Document for Development of UCG”. Draft documents were submitted and discussed in 3rd and 4th IMC meetings. In the 4th IMC meeting held on 16th February, 2017 at MoC under Chairmanship of AS (Coal), the draft Bid Document and Model Contract Documents were further deliberated and further modification were suggested. It was further considered that in view of amendment in MMDR Act 1957, which was under process, several regulatory changes/ legal amendments are required in lights of approved UCG policy which has been taken up by Ministry of Coal. Also on receipt of comments from IMC members the modified draft document will be re-drafted for deliberation in the next IMC meeting. A Workshop was organized on 'Challenges and opportunities for Development of UCG (Deep Seated Coal) in India' at Delhi on 23rd March, 2017. 19 GEOLOGICAL EXPLORATION & DRILLING CMPDI has substantially improved the capacity of drilling during XI & XII plan periods. 39 new Mechanical drills & 12 Hi-Tech Hydrostatic drills have been procured since 2008-09, out of which 12 have been deployed as additional drills and 39 as replacement drills. In addition to this, 7 Hi-tech Hydrostatic drills have been received and deployed in 2016-17. 19.1 Drilling Performance in 2016-17 CMPDI deployed its departmental resources for detailed exploration of CIL/Non-CIL blocks whereas State Govts. of MP and Odisha carried out exploration in CIL blocks only. Besides, eight other contractual agencies have also been engaged for detailed drilling/exploration in CIL/Non-CIL blocks. A total of 140 to 160 drills were deployed in 2016-17, out of which, 64 were departmental drills. As against the achievement of 2.09 lakh metre in 2007-08, CMPDI has achieved 9.94 lakh meter in 2015-16 and11.26 lakh metre in 2016-17 through departmental resources and outsourcing, registering a Growth of 13% over previous year. Apart from it, CMPDI continued the technical supervision of Promotional Exploration work undertaken by MECL in coal sector on behalf of MoC. A total of 1.045 lakh metre of promotional drilling has been carried out in Coal (0.490 lakh metre) & Lignite (0.555 lakh metre) during 2016-17. In 2016-17, CMPDI and its contractual agencies took up exploratory drilling in 122 blocks/mines of 22 coalfields situated in 6 States. Out of 122 blocks/mines, 35 were Non-CIL/Captive blocks and 87 CIL blocks/mines. Departmental drills of CMPDI took up exploratory drilling in 56 blocks/mines whereas contractual agencies drilled in 66 blocks/mines. Due to non-availability of forest clearance, work was stopped in 29 blocks. Due to lack of forest clearance and adverse law & order problem, about 2.91 lakh metre of drilling could not be carried out in departmental and outsourced blocks in 2016-17. 19.2 Geological Reports: In 2016-17, 16 Geological Reports were prepared on the basis of detailed exploration conducted in previous years. In addition, 2 IGRs/Geological Notes were also prepared. The prepared Geological Reports have brought about 4.6 billion tonnes of additional coal resources under 'Measured(Proved) category”. Under Promotional Exploration Programme, GSI and MECL have submitted 9 Geological Reports on coal blocks estimating about 1.04 billion tonnes of coal resources, in 'Indicated' &'Inferred categories', above the specified thickness. 19.3 Hydrogeology Hydro-geological studies of a number of mining projects/ mines were taken up for preparation of 'Groundwater Clearance Application' for CGWA approval and EMP clearance. Hydro geological studies for 17 mining projects of BCCL, CCL, WCL, SECL, NCL, ECL and MCL were completed during 2016-17. Total 53 nos. of Hydrogeological studies on GR/PR and others have been completed during this period for WCL, SECL, MCL, ECL, BCCL, NCL and1 outside consultancy job for DVC. Total 8 nos. of Hydrogeological reports on Location and Design of Piezometers have been prepared during this period for ECL, SECL and CCL.40 Piezometers (23 of Talcher Coalfields and 17 in IB Valley) have also been constructed under the technical supervision of Hydrogeologists of CMPDI. Long duration pumping test (1000 minutes cycle) and yield test were conducted by CMPDI during 2016-17. Hydro-geological studies in 6 projects of WCL, SECL, NCL and MCL have been carried out for water supply arrangement to mines, colonies and villages. In total 45 nos. of Groundwater Applications have been prepared and submitted online for WCL. CMPDI is also carrying out groundwater monitoring of MOEF cleared projects viz. 74 nos. of mines of WCL area and 15 nos. Cluster of mines in BCCL area. Water level monitoring in other areas of ECL, CCL, SECL, NCL and MCL were also carried out. 19.4 Geophysical survey Geophysical Logging: Boreholes drilled for exploratory drilling were geophysically logged to get the in-situ information of different strata encountered in the boreholes. During the year 2016-17, a total of 2,01,628 depth metre of geophysical logging has been carried out in CIL and Non-CIL projects with multi-parametric geophysical logging equipment. Out of this, 1,02,703 depth metre of logging was done by 6 departmental geophysical logging units and 98,925 depth metre of logging was carried out by contractual agencies. Surface Geophysical Surveys: CMPDI has also undertaken Electrical Resistivity & Magnetic Survey in CIL and Non-CIL blocks for delineation of in-crop of coal seams, delineation of dykes and ground water investigation. A total of 289.65 km of Resistivity profiling, 214 Vertical Electrical Sounding (VES) and 108 km of Magnetic survey have been carried out in 2016-17. With 48-Channel signal enhancement Seismographs, a total of 105 km of High Resolution Shallow Seismic (HRSS) survey has been carried out in Makri Barka block of Singrauli Coalfield and Kewai & Beharab and blocks of Sohagpur Coalfield. Reports: A total of 31 Geophysical reports have been submitted during the year 2016-17. It includes nine reports on geophysical logging, thirteen on resistivity survey, six on magnetic survey and three on HRSS survey. 20 OUTSIDE-CIL CONSULTANCY SERVICES During the year 2016-17, 35 outside-CIL consultancy jobs were completed by CMPDI for 26 organisations outside CIL. Some of the major clients/organizations are NMDC, MOIL Ltd., MAHAGENCO, Tata Steel, DVC, SAIL, UCIL, West Bengal Power Development Corporation Limited (WBPDCL), Chhattisgarh State Power Generation Company Limited (CSPGCL), etc. Presently, 25 outside-CIL consultancy jobs are being executed by CMPDI for 19 organisations like OCPL, NMDC, NALCO, NTPC Ltd., MAHAGENCO, SAIL, Orissa Mining Corporation (OMC), PFC Consulting Limited (PFCCL), Gujarat State Electricity Corporation Limited (GSECL),etc. During the year 2016-17, 43 outside-CIL consultancy jobs worth Rs.141.38 crores from 29 organizations were procured by CMPDI. This is the highest ever value of jobs obtained in a year by CMPDI. One overseas assignment of “Preparation of Feasibility Study for Benga Coal Project of M/s ICVL in Tete Province of Mozambique” has also been obtained from NMDC. 21 RESEARCH & DEVELOPMENT PROJECTS 21.1 R&D Projects under S&T Grant of Ministry of Coal The Research & Development (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 NLCIL, Director General of DGMS, Directors of concerned CSIR Laboratories, representatives of Department of S&T, NITI Aayog and educational institutions, amongst others. The main functions of SSRC are to plan, program, and budget and oversee the implementations of research projects and seek application of the findings of the R&D work done. The SSRC is assisted by a Technical sub-committee headed by CMD, CMPDI. The committee deals with research proposals related to production, productivity and safety in coal mines, coal beneficiation and utilization, clean coal technologies, protection of environment and ecology etc. 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, scrutiny and 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 31.3.2017) - 390 Total no. of S&T projects completed (till 31.3.2017) - 320 21.2 Physical Performance The status of Coal S&T projects during 2016-17 is as under: i) Projects on-going as on 1.4.2016 18 ii) Projects approved/in-principle approved (sanction letter awaited) 03 iii) Projects completed during 2016-17 06 iv) Projects on-going as on 01.4.2017 12 Following S&T projects were approved (Sl.No.1) /inprinciple approved (Sl.No. 2 & 3)in 52nd meeting of SSRC held on 15.3.2017. Sanction letter awaited: 1. ”Indigenous development of early warning radar system for predicting failures/slope instabilities in open cast mines” - SAMEER, Mumbai; ARDE, Pune; CSRE; IIT, Mumbai; CMPDI, Ranchi and NCL, Singrauli. 2. ”Design of water network to optimize water consumption in coal washeries for removal of impurities from coal” -IIT, Roorkee; CMPDI, Ranchi & CCL, Ranchi; 3. ”Electronification of ground water control and conveyor systems in mines” - NLC India Ltd., Neyveli and NITT, Tamil Nadu. Following Coal S&T projects were completed during 2016-17: 1. Development of tele robotics and remote operation technology for underground coal mines - CIMFR, Durgapur; CIMFR, Dhanbad and CMPDI, Ranchi. 2. Development of indigenous catalyst through pilot scale studies of Coal-to-Liquid (CTL), conversion technology - CIMFR, Dhanbad and CMPDI, Ranchi. 3. Enhancing life of de-watering pipes in coal/lignite mines by prevention of erosion-corrosion with nano-crystalline surface Engineering Treatments 4. Blast design and fragmentation control-key to productivity - CIMFR, Dhanbad 5. Design and development of truck mounted mobile coal sampler for instant coal ash & moisture analyser at site from railway Mechanics - CIMFR, Dhanbad; SCCL, Kothgudem and M/s Pranay Enterprises Pvt. Ltd., Hyderabad 6. Optimization of various parameters of lab scale Coal Winnowing System (Phase-II) - CIMFR, Unit-I, Nagpur and CMPDI, Ranchi 21.3 Financial Status Budget provisions vis-a-vis actual fund disbursement during the period are given below: (Rs in Crores) 2015 -16 2016-17 RE Actual BE Actual 18.0 17.59 9.0 10.38 21.4 CIL R&D Projects For in-house R&D work of CIL, R&D Board headed by Chairman, CIL is also functioning. CMPDI acts as the Nodal Agency for processing the proposals for CIL approval, preparation of budget estimates, disbursement of fund, monitoring the progress of implementation of the projects, etc. So far, 79 projects have been taken up under the fund of CIL R&D Board, out of which 61 projects have been completed till March 2017. The status of CIL R&D Board Projects during 2016-17 is as follows: i) Projects on-going as on 1.4.2016 10 ii) Projects approved during 2016-17 06 iii) Projects completed during 2016-17 03 iv) Projects on-going as on 01.4.2017 13 Following new R&D projects were approved during 2016-17: 1. Development of guideline for prevention & mitigation of explosion hazard by risk assessment and determination of explosibility of Indian coal incorporating risk based mine emergency evacuation and re-entry protocol -IIT-ISM, Dhanbad; CIMFR, Dhanbad; S&R Division, CIL(HQ), Kolkata and SIMTARS, Australia. 2. Multiple layer trial blasting for better recovery with less diluted coal - IIT-ISM, Dhanbad and CMPDI, Ranchi. Technical Participation - University of Queensland, Brisbane, Australia. 3. Studies on the Use of Coal and Petcoke as Fuel in the Cement Industry in India - IIT-ISM, Dhanbad and CMPDI, Ranchi. 4. Indigenous Development of Through-The-Earth (TTE) Two-Way Voice Communication System for Underground Mines - IIT, Bombay and CMPDI, Ranchi. 5. Requirement of air in mine for Mass Production Technology - CMPDI, Ranchi. 6. Development of a methodology for regional air quality monitoring in coalfield area using satellite data and ground observations - CMPDI, Ranchi and National Remote Sensing Centre (NRSC), ISRO, Hyderabad. Following R&D projects were completed during 2016-17: 1. Demonstration of Coal Dry Beneficiation System using Radiometric Technique - CMPDI, Ranchi and Ardee Hi-Tech Pvt. Ltd., Vishakhapatnam. 2. To find a methodology of safe liquidation in thick seams of Raniganj Coalfields: Design & Development & showcasing demonstrative trials at Khottadih colliery, ECL - CIMFR, Dhanbad& ECL, Sanctoria. 3. Development of guidelines to predict distance between toe of the Shovel-Dumper dump and that of Dragline dump with consideration of safety and economical design of both Shovel-Dumper dump and Dragline dump - BIT, Mesra, Ranchi. 22. INFORMATION AND COMMUNICATION TECHNOLOGY IN CIL CIL and its subsidiaries have utilized communication and Information technology and implemented many systems to achieve faster strategic decision making and optimal utilization of available resources for enhancing production and productivity. Systems have been introduced to minimize pilferage of coal and also to increase transparency for the satisfaction of its stakeholders. In this regard, following key initiatives have been taken: 1. E-office application for CIL and its Subsidiaries has been introduced from 1st JulyRs.17. The project intends to enhance the business process management of the organization and aims to improve production, productivity, and increase transparency by replacing the old manual process with an electronic file system. 2. The subsidiaries have Coal Net and other Information systems in place for obligatory accounting, finance, payroll, material management system and other business functions. 3. Coal India is also in the process of implementation of ERP. The detailed project report for the same is ready and steps are in progress for implementation. 4. GPS based Operator Independent Truck Dispatch System (OITDS) with high speed Data and Voice communication is implemented in the targeted eleven Open cast projects to optimize operation of HEMM to enhance the production and productivity of the mine. 5. GPS/GPRS based Vehicle Tracking System across all major mines of Coal India has been implemented at different subsidiaries along with Geo-fencing, boom barriers and RF-ID system to monitor coal transportation and to minimize pilferages. 6. Electronic Surveillance through CCTV at weighbridges, workshops, coal dumps and other strategic locations has been implemented and process has been initiated to cover all projects. 7. In order to improve coal dispatch, electronic weighbridges are connected with Central Servers of respective subsidiaries and initiatives have been taken for implementing online generation of Challans/invoices. 8. E-Auction of coal, E-procurement and Reverse auction systems for all goods, works and services have been implemented to speed up procurement process and to achieve transparency in the system. 9. E-payment to employees and vendors, E-filing of grievances are in operation to embark upon the business process through IT initiatives. 10. Corporate Mail Messaging System is in place for corporate email IDs to all the officers of Coal India and its Subsidiaries. 11. In order to meet the demanding business process, state-of-art IP based EPABX with support of convergent technology for voice and data, Radio communication System and UG communication system at different locations of Coal India and its subsidiary companies are operational. 12. The Web Portal of Coal India is in place in English and Hindi encompassing the features like Tender publication, Vigilance corner, Investor center, Customer corner, etc. to facilitate all stake holders. 13. Multi-Protocol Layered Switching (MPLS) based Video Conferencing between CIL, Subsidiaries, CIL HQ, CIL Office, Delhi and MoC for enhancement of decision making process for better production and productivity has been successfully implemented. CIL and subsidiaries have also implemented Video Conferencing connectivity with External agencies across the globe. 14. CIL has implemented in-house online portals for Performance evaluation, quality analysis, Vigilance clearance, Land Information System, filing of Annual Property Return through web enabled system. Mobile Apps have been developed for public dissemination of information. 15. State-of-art Tier-III Data Center has been established in New building of the corporate office of Coal India Limited for facilitating future IT applications. 23. MINES SAFETY 23.1 Statutory Frame-work for safety in coal mines: Coal mining world over is highly regulated industry due to presence of many inherent, operational and occupational hazards and associated risks. Coal Mine Safety Legislation in India is one of the most comprehensive and pervasive statutory framework for ensuring occupational health and safety (OHS). Compliance of these safety statutes is mandatory. In India, the operations in coalmines are regulated by the Mines Act, 1952, Mine Rules -1955, Coal Mine Regulation-1957 and several other statutes framed thereunder. Directorate-General of Mines Safety (DGMS) under the Union Ministry of Labour & Employment (MOL&E) is entrusted to administer these statutes. The following are the statutes that are applicable in coal mines for occupational health and safety (OHS). SN Statute 1 The Mines Act -1952 2 The Mines Rules -1955 3 The Coal Mine Regulation -1957 4 The Mines Rescue Rules -1985 5 The Electricity Act- 2003 6 Central Electricity Authority (measures related to safety & supply) Regulations - 2010 7 The Mines Vocational Training Rules -1966 8 The Mines Creche Rules -1966 9 Indian Explosive Act, 1884 10 The Explosive Rules - 2008 11 Indian Boiler Act, 1923 12 Mines Maternity Benefit Act & Rules -1963 13 The Workmen Compensation Act - 2009 14 The Factories Act - 1948 Chapter -III & IV 23.2 Safety Policy of CIL: Safety is always given prime importance in the operations of CIL as embodied in the mission statement of CIL. CIL has formulated a well-defined Safety Policy for ensuring safety in the mines and implementation of the same is closely monitored at several levels. 1) Operations and system will be planned and designed to eliminate or materially reduce mining hazards. 2) Implement Statutory Rules and Regulations and strenuous efforts made for achieving superior standards of safety; 3) To bring about improvement in working conditions by suitable changes in technology; 4) Provide material and monetary resources needed for the smooth and efficient execution of Safety Plans; 5) Deploy safety personnel wholly for accident prevention work; 6) Organize appropriate forums with employees' representatives for joint consultations on safety matters and secure their motivation and commitment in Safety Management; 7) Prepare annual Safety Plan and long term Safety Plan at the beginning of every calendar year, unit-wise and for the company, to ensure improved safety in operations as per prevailing geo-mining conditions to prepare the units for onset of monsoon, to fulfill implementation of decisions taken by the Committee on Safety in Mines and Safety Conferences and to take measures for overcoming accident proneness as may be reflected through study of accident analysis, keeping priority in sensitive areas of roof-falls, haulage, explosives, machinery etc. 8) Set up a frame work for execution of the Safety Policy and Plans through the General Managers of Areas, Agents, Managers and other safety personnel of the units; 9) Multi-level monitoring of the implementation of the Safety Plans through Internal Safety Organization at the Company Headquarters and Area Safety Officers at area level; 10) All senior executives at all levels of management will continue to inculcate a safety consciousness and develop involvement in practicing safety towards accident prevention in their functioning; 11) Institute continuous education, training and retraining of all employees with the emphasis laid on development of safety oriented skills; 12) Continue efforts to better the living conditions and help all the employees both in and outside the mines. To implement CIL Safety Policy, the following are provided: 1. Provision of adequate funds for safety. 2. Deployment of adequate numbers of trained manpower for ensuring safety in mining operations. 3. A well-structured and multi-disciplinary Internal Safety Organization (ISO) established in all the subsidiaries of CIL to monitor the implementation of CILs Safety Policy. 4. Continuous and sustained improvement in technological inputs for mining operation. 5. Support of scientific planning and R&D activities made available through using in-house expertise of CMPDIL and in collaboration with the other scientific agencies and reputed educational institutes. 6. Ensuring workers' participation in every forum for monitoring safety status in mines. 23.3 Accident Statistics Analysis of Accident Statistics in CIL - Accidents statistics is the relative indicator for safety status in mines. Over the years, the safety performance of CIL in terms of accident has improved significantly. This improvement in mine safety in CIL is attributed to the following contributing factors: - Collective commitment and synergetic collaboration of the Management, Employees, the regulator (DGMS) and Trade Unions. - Use of state-of-the-art technology in the field of Mining Methods, Mining Machineries and Safety Monitoring Mechanism. - Continuous improvement in knowledge, skill and responsiveness of workforce through imparting quality safety training and relentless safety awareness drives. - Constant vigil, round-the-clock supervision and assistances from various quarters. Salient features of continuous and sustained improvement in CILs safety performance is disclosed in Annexure 18 23.4 Major Activities for Safety & Rescue Division of CIL: 1. Inspection of mines to review safety status & follow up action thereof. 2. Prima-facie fact finding enquiry into fatal accidents and major incidences such as mine fire, subsidence, inrush of water, slope failure, explosion etc. 3. Organizing meeting of CIL Safety Board and monitoring recommendations / suggestions made during meeting. 4. Framing of internal technical circulars / guidelines related to safety issues and monitoring implementation thereof. 5. Maintenance of accidents / major incidents statistics Database. 6. Publication of Safety Bulletin for disseminating and sharing of knowledge in order to promote safety awareness and inculcate better safety culture. 7. Framing reply of different coal mine safety related parliamentary questions including queries raised by different standing committees such as standing committee on Steel & Coal, standing committee on labour, as well as questions raised by COPU, MOC, CA&G and VIPs. 8. Monitoring safety related R&D activities in CIL. 9. Imparting specialized training by SIMTARS accredited trainers to unit level and Area level executives who are directly engaged in ensuring safety in mine. 23.6 Measures taken for improvement of safety in 2016-17 To improve safety standard, CIL and its subsidiaries have vigorously pursued several measures in the year 2016 along with on-going safety related initiatives apart from compliance of statutory requirements for safety, which are given below. 1. Internal Safety Organization (ISO): Continuous review of safety status of mines is being done by the multidisciplinary Internal Safety Organization (ISO). 2. Training for preparation of Risk Assessment based SMP: Executives who have been trained by SIMTARS, Australia are engaged for imparting training and upgrading the knowledge of mine level executives as well as members of safety committee of mine to identify the hazards and evaluate the associated risks in the mines and prepare Risk assessment based Safety Management Plans (SMPs). 3. Preparation and Implementation of Risk Assessment based Safety Management Plan (SMP): The Risk assessment based Safety Management Plans (SMPs) have been prepared for all mines of CIL and control measures suggested thereof in SMPs are being implemented. It is a continuous ongoing process. 4. Standard Operating Procedure (SOP): Risk assessment based site specific Standard Operating Procedures (SOP) are formulated and being implemented for various mining and allied operations. 5. Safety Audit of all producing / operative mines have been conducted by multi-disciplinary inter-company teams. 6. Assessment of OB dumps have been conducted by using expertise of CMPDIL and multi-disciplinary ISO teams in most of opencast mines. 7. Guidelines on corrective measures: After analysis of fatal accidents which occurred at different point of time in 2016, several directives / guidelines on corrective measures to be taken for prevention of recurrence of similar type of accidents in future have been issued by the Safety & Rescue Division of CIL. 8. Adoption of the state-of-the art technology in suitable geo-mining locales. - Adoption of Mass Production Technology in more number of UG mines. - Deployment of more number of Surface Miners to eliminate blasting operation in OCPs. - Deployment of relatively higher capacity HEMM in more number of OCPs. - Mechanization of UG drilling. - Phasing out manual loading in UG mines. 9. Adoption of the state-of-the art mechanism for Strata Management - Scientifically determined Rock Mass Rating (RMR) based Support System. - Strata Control Cell for monitoring efficacy of strata support system. - Roof bolting by using mechanized Drilling for Roof Bolting. - Use of Resin capsules in place of Cement capsules. - Use of modern Strata Monitoring Instruments. - Imparting quality training to support crews & frontline mine officials. 10. Mechanism for monitoring of mine environment: - Detection of mine gases by using Methanometer, CO-detector, Multi-gas detector etc. - Continuous monitoring of mine environment by installing Environmental Tele Monitoring System (ETMS) & Local Methane Detectors (LMD) etc. - Regular Mine Air Sampling and Analysis by Gas Chromatograph. - Personal Dust Sampler (PDS). - Use of Continuous Ambient Air Quality Monitoring System (CAAQMS) in large OCPs to assess the ambient dust concentration and take suitable mitigation measures. 11. Underground Mine Ventilation: - Supply of sufficient quantity air by installing suitable Main Mechanical Ventilator (Surface), Auxiliary Fans, Booster fans (UG), ventilation stoppings, air Crossings etc. - Conducting Pressure-Quantity Survey on regular basis. - Using Modern gadgets for air measurement. 12. Water Danger Management: - Conducting Check Survey to eliminate errors in mine survey. - Preparation and maintenance of seam-wise Water Danger Plan. - Preparation and implementation of Monsoon Preparation Plan. - Adequate Pumping Facilities & adequate capacity of sumps. - Liaison with the State Meteorological Dept. & Dam Authority, if any. - Construction of embankments with proper design against water bodies. - Advance borehole for locating water body in underground. - Inter-mine joint survey between adjoining mines to prove inter-mine barriers to prevent transference of danger. 13. Steps for prevention accidents in OCPs: - Formulation and implementation of Mine-specific Traffic Rules. - Code of Practices for HEMM operators, Maintenance staff & others. - Training of Contractor's Workers involved in contractual jobs. - Training on Simulators to dumper operators. - Lighting arrangement using high mast towers for increasing level of illumination. - Eco-friendly Surface Miners for blast free mining and avoidance of associated risks. - Dumpers fitted with Proximity Warning Devices, Rear view mirrors and camera, Audio-Visual Alarm (AVA), Automatic Fire Detection & Suppression system etc. - Ergonomically designed seats & AC Cabins for operators' comfort. - Wet Drilling & water Sprinklers for dust suppression. - Use of Shock Tubes & Electronic Detonators for control of ground vibration & fly rocks. - GPS based Operator Independent Truck Dispatch System (OITDS) in large OCPs for tracking movement of HEMMs inside OC mine. 14. Mine Safety Inspection: - Round-the-clock Supervision of all mining operations by adequate number of competent & statutory Supervisors and mine Officials. - Periodic mine Inspections by Head Quarter and Area level senior officials. - Surprise back shift mine Inspections by mine and area level officials. - Regular Inspection by Workmen Inspectors appointed in each mine. - Regular mine Inspection by officials of Internal Safety Organization. 15. Safety Training: - Risk Management and preparation of “Safety Management Plan”. - Initial and Refresher training & On-the-Job Training as per statute. - Training on Simulators to dumper operators. - Skill up-gradation of frontline mining officials. - Sensitization of all employees including members of Safety Committees and contractual workers. 16. Emergency Response System: - Emergency Action Plans prepared for each mine. - Mock Rehearsals for examining the efficacy of Emergency Action Plan. - Demarcating Emergency Escape Routes in belowground. - Check list prepared for dealing with an emergency in mine. - Flow Chart prepared for sending information regarding crisis / disaster in mines from site of accident to the Ministry of Coal, New Delhi. 24. Mine Rescue Services in CIL: - CIL is maintaining well established and structured organizations comprising of 6 Mine Rescue Stations, 14 Rescue Rooms-with-Refresher Training facilities (RRRT) and 17 Rescue Rooms to cater the need of mine rescue services as per statute. - All Mine Rescue Stations / Rescue Rooms are fully equipped with adequate numbers of rescue apparatus as per the Mine Rescue Rules (MRR) - 1985. - All mine rescue organizations are manned by adequate numbers of Rescue Trained Personnel (RTP)s as per the MRR-1985. - All RTPs are being periodically retrained to conduct rescue operations in hot, humid and irrespirable atmospheres in modern training galleries as well as challenging conditions in underground mines. - Permanent Brigade Members and RTPs who are on call 24x7 for rescue & recovery operation. - The Mine Rescue Station and Rescue Rooms are established at strategic locations spreading across different subsidiaries to cater to the emergencies in their command Area. The details are given in Annexure 18. 25. Safety Monitoring Agencies in CIL: The implementation and monitoring of safety norms stipulated as per statute are being done on constant basis both by the line management as well as ISO officials. Apart from the above, there are several other agencies for monitoring safety, these are as under: At Mine Level - Workman inspectors: as per Mines Rule-1955 - Safety Committee: constituted as per Mines Rule-1955 At Area Level - Bipartite/Tripartite Safety Committee Meeting - Safety Officers' Coordination Meeting At Subsidiary HQ Level - Bipartite/Tripartite safety Committee Meeting - Area Safety Officers' Coordination Meeting - Inspections by ISO Officials At CIL (HQ) / Corporate Level - CIL Safety Board. - CMD's meet. - Director(Tech)'s Co-ordination Meeting. - National Dust Prevention Committee Meeting. At Ministerial / National Level - Standing Committee on Safety in Coal Mines. - National Conference on Safety in mines. - Various Parliamentary Standing committees. 26. HUMAN RESOURCE DEVELOPMENT Coal India Limited has made optimum utilization of the resources and technology both existing and new and also used advanced methods and technology for the enhancement of efficiency and productivity in the company. HRD has been developing new techniques and creating opportunities for employee's selfdevelopment which in turn proved to be favouring the company as a whole. 26.1 Overall Performance In CIL and its subsidiaries, 140490 employees have been trained during 2016-17. Out of which 18757 were executives and 121733 non-executives. These trainings include in- house training (training at subsidiary training centers, VTCs and also at IICM), training in other reputed institutes outside the company and training abroad. 26.2 Trainings i) 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 Divisions organized these trainings after assessing the training need in the respective category of employees within the subsidiary. Special attention was given for improving skill of the employees keeping in mind the need of Industry. Details of in-house Training imparted during 2016-17 are listed below:- Training Short Training Workshop/ Seminar Total Executive 5060 6877 1800 13737 Non executive 98567 21837 379 120783 Total 103627 28714 2179 134520 ii) Training Outside Company (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 inhouse training efforts. Employees from eight subsidiary companies and from CIL (HQ) have been trained in those reputed institutes. The break-up is given below:- Training Short Training Workshop/Seminar Total Executive 1684 2532 683 4899 Non executive 690 113 147 950 Total 2374 2645 830 5849 iii) Training Abroad Coal India has sent 121 employees to different countries from all the subsidiary companies and CIL (HQ) during the year 2016-17. Training W/Shop/ Seminar/ Conference Total Executive 120 1 121 Non-executive 0 0 0 Total 120 1 121 iv) Initiatives - CIL has been recruiting fresh and dynamic young bloods in different disciplines for the last few years consistently. A special attention has been given 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 at IICM with the reputed faculties. Special attention has also been given in tuning them in their respective specialized working areas by on-the-job training throughout the year. - As MTs of Excavation and E&M disciplines are posted in different Coal Mines, in order to provide them proper exposure to Mining Operations as well as Mining Equipment (both surface and underground) and to make them conversant with the Mining activities, 5 weeks intensive training for 168 AMs/MTs was organized at Indian School of Mines, Dhanbad, the premier Mining Institute of our country during the year 2016-17. - Training program on General Management for Middle level Executives of Coal India Limited for two weeks is done by making a tie up with Administrative College of India (ASCI), Hyderabad to develop Executives to take up higher responsibilities and occupy senior positions.189 Participants have attended the course for the financial year 2016-17. - Training program on Executive Development for E4/ E5 executives of Coal India Limited is done by making a tie up with Indian Institute of Management, Lucknow. 126 Participants have attended the course for the financial year 2016-17. - One Batch consisting of 15 members comprising Mining, E&M are trained in AGH University, Poland. - A Tripartite MoU has been entered into among National Skill Development Fund(NSDF), National Skill Development Corporation(NSDC) and CIL on 3rd May,2015 to provide training and undertake Recognition of Prior Learning to around 2.7 Lakh persons over a period of 2 years as per National Skills Qualification Framework in CIL's operational areas and neighboring regions. - For the Year 2016-17, Under RPL(Recognition of Prior Learning) 38,833 employees are trained . 26.3 Recruitment During FY 2016-17, 38 Medical Specialists and Medical officers joined the Company. CIL also inducted fresh talent into the organization, at the entry level 438 Management Trainees who are selected through campuses have joined. They have been imparted induction training and posted to different subsidiaries based on manpower requirement. Further, CIL has also promoted 175 non-executives level employees into Executive cadre through departmental selection/promotion process. 27. Manpower 27.1 The total manpower of the Company including its subsidiaries as on 31.03.2017 is 310016 against 3,22,404 as on 31.03.2016. Subsidiary company wise position of manpower is disclosed in Annexure 19. 27.2 The Presidential directives for Scheduled Caste/Scheduled Tribes/OBC have been implemented in all the subsidiaries/ units of Coal India Limited. The representation of SC/ST employees in total manpower of CIL and its Subsidiary Companies as on 01.01.2015, 01.01.2016 and 01.04.2017 is given below:- As on Total Scheduled Caste Scheduled Tribe Manpower Nos. Percentage Nos. Percentage 1.1.2015 336675 73527 21.84 41212 12.24 1.1.2016 326032 70502 21.62 39669 12.17 1.4.2017 310016 70513 22.74 39721 12.81 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 levels and Subsidiary (HQ) levels continued to function normally. Meetings of Standardisation Committee were held at regular intervals at CIL. Strikes and Bandhs: During 2016-17, a one day Nation-wide General Strike was called by Four Central Trade Unions on 2nd September, 2016 due to which company lost 83368 Man-days and 443834 tonnes of production. There were total 5 instances of Bandh called by regional parties in the area of operation of subsidiary companies viz. MCL, CCL & CMPDIL, where normal working was affected. Subsidiary wise details of strikes, man-days lost and production lost and other incidents for the year 2015-16 and 2016-17 are furnished in Annexure 19. 29. EMPLOYEES' WELFARE AND SOCIAL SECURITY SCHEMES 1) HOUSING: At the time of Nationalisation, there were only 1,18,366 houses including sub-standard houses. The availability of these houses has increased to 3,97,379. The percentage of housing satisfaction has now reached 100%. 2) WATER SUPPLY: As against 2.27 Lakhs population having access to potable water at the time of Nationalisation in 1973, presently a populace of 19,61,547 has been covered under water supply scheme. 3) MEDICAL FACILITIES: Coal India Ltd and its subsidiaries are extending medical facilities to its employees and their families through various medical establishments from the Dispensary level to the Central and Apex Hospitals in different parts of the coalfields. There are 80 Hospitals with 4938 Beds, 376 Dispensaries, 541 Ambulance and 1150 Doctors including Specialists in CIL and its subsidiaries to provide medical services to the employees. Besides 05 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. Moreover, medical facilities are provided to the peoples residing in and around mines premises of the subsidiary companies of CIL. 4) EDUCATIONAL FACILITIES: The subsidiary companies of CIL have been providing financial assistance by way of deficit grant and infrastructure facilities to certain renowned schools viz. 43 nos.- DAV Public Schools , 14 Nos.- KendriyaVidyalaya, 01 No.- Delhi Public School, 02 Nos. Saraswati Vidya Mandir, 01No. Ram Krishna Vivekanand Vidyapith, 01No. Vivekanand Kendriya Vidyalaya to impart quality education. In addition to above, grant - in -aid is provided to Privately Managed school in ECL, BCCL & CCL to encourage education in the operational areas of subsidiaries. Coal India Scholarship Scheme In order to encourage the Sons and Daughters of the employees of Coal India Limited, two types of Scholarship, viz. Merit and General Scholarship, are being provided every year under prescribed terms and conditions. In total 7170 scholarships were awarded and tuition fees & hostel charges were reimbursed to 1142 students. The details of Scholarship and Reimbursement of tuition fees and Hostel charges for studying in Government Engg. & Medical Colleges, IITs & NITs as well as the details of Grant sanctioned for Schools including privately managed school are disclosed in Annexure 20. 5) Statutory Welfare Measures:- In accordance with the provisions 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. 6) 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. 16 Central Co-operatives and 99 Primary Co-operative Stores are functioning in the Coalfield areas of CIL. In addition, 158 Co-operative Credit Societies are also functioning in the Coal Companies. 7) Banking Facilities:- The Management of Coal Companies are providing infrastructure facilities to the various Nationalised Banks for opening their Branches and Extension Counters in the coalfields for the benefit of their workers. Workers are educated to draw their salaries through 427 Bank Branches and 48 Extension Counters and they are also encouraged to practice thrift for the benefit of their families. 8) Sports:- Structured sports policy of CIL and its subsidiaries was approved by CIL Board its 296th Meeting held on 25th March,2013. As per the Sports Policy Coal India Sports Promotion Association (CISPA) has been registered under West Bengal Societies Registration Act, 1961. CISPA has undertaken several sports activities at National Level and International Level. 9) Welfare, Development and Empowerment of Women In Coal India Limited there is a Forum for Women in Public Sector Cell at Company Headquarter- Kolkata and subsidiary companies. Each WIPS Cell is headed by a Coordinator who plans and executes various activities of the Forum with the help of a duly appointed Executive Committee. The company extends active support to the various activities of WIPS comprising of welfare activities, training & development activities, seminars, cultural programme, industrial awareness visits, health awareness programme, etc for the WIPS members, women workers, their families and society at large. Coal India Ltd and its subsidiary companies are extending full fledged support and patronage to the National Conference of Forum of WIPS held every year in February. 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 honouring the exceptional talent. 10) Special Cash Award:- During 2016-17, an amount of Rs.1,46,000/-has been provided as Special Cash Award to 26 meritorious Sons and Daughters of employees of CIL(Hqrs.), Kolkata Desk Offices of subsidiary companies @Rs.7,000/- for 08 (Eight) students who have secured 90% or above marks in the Class-XII Board level examination and @Rs.5,000/- for 18(Eighteen) students who have secured 90% or above marks in the Class-X Board level examination. 11) Recreational facilities:- At present there are eight Holiday homes in following places. (a) Puri (b) Digha (c) Goa (d) Manali (e) Katra (f) Ajmer (g) Darjeeling (h) Haridwar Efforts are on to include more holiday home in the other important tourist spots in the country. 12) CIL Welfare Board Meeting:- Coal India Welfare Board is the decision making forum regarding welfare policies for betterment and improvement of living condition of employees. The members of CIL welfare board comprising of Central Trade Union representative and representation of Managements meet regularly to discuss on the welfare measures and review the implantation of different welfare scheme. 30. TREE PLANTATION / AFFORESTATION Plantation and Green belt are developed through extensive tree plantation programme every year by the subsidiaries of Coal India Ltd. Avenue plantation, plantation on the OB dumps, plantation around mines, residential colonies, and available land is undertaken in the existing as well as the new projects. The subsidiaries of CIL have planted around 94.015 million of trees covering an area over 37557.458 Ha. till March 2017. 31. PROGRESSIVE USE OF HINDI. Keeping with the spirit of the constitution of India, Coal India Limited continued its efforts to propagate and spread the progressive use of Official Language Hindi during the period under review. The management of Coal India Limited is committed to implement the provisions of the Official Languages Act, Rules and Regulations. For this purpose, periodical meetings and reviews are done regularly by the top officials. A brief description of the works done during the year under review towards implementation of Rajbhasha is appended below:- Workshops were organized regularly with a view to create working atmosphere of Rajbhasha and to remove hesitation of officers & employees to work in Hindi. During the year, large number of officers &employees participated in such workshops to refresh their knowledge of Hindi words, Hindi noting & drafting in regular Official works. In order to promote Hindi as Official Language a “Grand Hasya Kavi Sammelan” was organized on 30.04.2016 in the auditorium of Coal India Ltd., Kolkata where a large number of audiences were present. With the aim to promote Official language and to foster interest in Official Language among officers and employees, Publication of Hindi Magazine namely “Koyala Darpan” has been started from Coal India headquarters. During the year 2016-17, its second & third issue has been published. The purpose of publishing the magazine is to provide a platform to the creative potential of employees and to inform all about the activities of Coal India. With a view to create conducive atmosphere for working in Hindi and accelerating the use of Hindi as Official Language among officials, 'Hindi Fortnight' was observed in all offices of Coal India Ltd. in the month of September, 2016. During the Hindi Fortnight various Hindi Competitions such as Hindi noting and drafting, Hindi Self writing, Hindi Dictation, Hindi Translation, Hindi typing and Lectures competition were organized where a large numbers of employees participated enthusiastically. The winners were honoured with Cash Awards & Certificates. This creates a consciousness among employees to use Rajbhasha in official Work. It is notable that Regional Sales Office, CIL situated at different cities were granted sufficient fund as per their sizes to celebrate Hindi Diwas & Hindi week/fortnight as per the practice. Supportive literature and dictionaries were provided to the departments on their demand. 'Today's Word' and 'Today's Thought' are displayed on all the signage at the New Office Complex, Rajarhat. Coal India always lays emphasis on imparting training of Hindi Language under Hindi teaching scheme of Govt. of India by nominating the employees in Hindi Praveen & Pragya classes. For the session starting from January, 2017, sixteen (16) employees have been nominated for attaining working knowledge of Hindi. Further, to promote Hindi, number of employees were also nominated in Hindi Workshop/Training camps organized by certain prestigious institutions. Different organizations of Govt. of India recognize the best performers by awarding prizes. During the year, Coal India Ltd. was conferred with following Awards:- A) 1st Prize of TOLIC(PSUs), Kolkata: Under the Rajbhasha Award Scheme of the Govt. of India, Honourable Governor of West Bengal Shri Kesharinath Tripathi awarded TOLIC (PSUs) Kolkata Sheild - 1st Prize to Coal India Ltd. in the Corporate Offices category for the best implementation of Official Language Policy of the Union on 11.8.2016. B) Award to CIL's Hindi magazine 'KoyalaDarpan':On 3rdJune, 2016 Coal India headquarter's Hindi magazine 'Koyala Darpan' was awarded first prize in the category for the best Hindi magazine by Rajbhasha Seva Sanshthan, New Delhi. Inspection of offices is a part of the implementation. During the year Officials of Rajbhasha department, CIL (HQ) reviewed the status of implementation of the Official Language of RSO Delhi & Lucknow and suggested remedial measures. To observe the status of the use of Hindi in official work and to ensure that the provisions of Official Languages Act and Rules made there under are properly complied with, the 3rd subcommittee of Parliament on official Language inspected Delhi office, Regional Sales Office Jaipur & Ahmedabad as well as Coal India Headquarter, Kolkata. 32. VIGILANCE SET UP The anti-corruption activities in CIL and its Subsidiary Companies have been institutionalized by setting up of Vigilance Departments headed by a Chief Vigilance Officer (CVO), appointed by the Govt. of India in consultation with Central Vigilance Commission (CVC) on tenure basis, drawn from various government services. During the year 2016-17, 49 Intensive Examination of Works/ Contracts (Major works) were undertaken by CIL(HQ) and its subsidiary companies. In addition,379 Surprise checks were carried out. Besides, 68 Departmental Inquiries were disposed of which resulted in punitive action against 185 officials. Such examinations/investigations have resulted into initiation of various system improvement measures. As per the directives of Central Vigilance Commission, Vigilance Awareness Week - 2016 has been observed in Coal India Limited, IICM- Ranchi, North Eastern Coalfields-Margherita & Regional Sales Offices across the country besides all the Subsidiary Companies w.e.f. 31.10.2016 TO 05.11.2016 emphasizing the theme of “Public participation in Promoting Integrity and Eradicating Corruption”. During the week, in order to generate awareness, educate and discuss transparency among officials/stake holders as well as general public to arrest the root cause & threat of corruption and to promote good governance, various activities were organized. 1. Inauguration - The Vigilance Awareness Week was commenced with the administration of Pledge to the employees by Chairman, CIL while inaugurating the week on 31st October 2016. 2. Wide Publicity - - 1000 pamphlets distributed to CIL HQ Employees, Visitors, Contractual Workers/ Drivers and Vendors with Vigilance Message and they were requested to take e-pledge. Throughout the week 20 e-posters displayed in all the digital signage in CIL HQ. - The posters / banners / pamphlet / canter / 2D gate specially designed for VAW-2016 and events organised during the week has been uploaded in Company's official Facebook page. Also the same has been posted in CVO, CIL and CIL official twitter account. - 40 banners of 6 ftx 4 ft has been displayed in prominent places across Kolkata. One large size 16 ft x 10 ft banner has been displayed in busy VIP Road with message and request the citizens to take e-pledge. - 100 Posters with Anti-corruption and Vigilance Awareness message displayed across Kolkata in public places. - Through News Papers in 3000 Households, Shops and Offices in Salt-lake and Ultadanga Area. 6000 Nos distributed through Canter Moving prominent places with signature campaign from 02.11.2016 to 05.11.2016 and Flash mob performing skit on Anti-Corruption message on 04.11.2016. 3. Employees Competitions - i. Slogan Competition for Employees of CIL HQ on TOPIC- “PUBLIC PARTICIPATION IN PROMOTING INTEGRITY AND ERADICATING CORRUPTION”. ii. Essay Competition for Employees of CIL HQ on TOPIC- “CHALLENGES THE COUNTRY FACES IN 21st CENTURY IN COMBATING CORRUPTION”. iii. Quiz Competition for Employees of CIL HQ on issues in Vigilance, CVC and other Anti-corruption Laws, Policies, manuals and guidelines of CIL. iv. System Improvement/New Initiatives Competition for Employees of CIL HQ. 4. Competitions for Wards and Spouses of Employees - i. Elocution Competition for wards of Employees of CIL HQ studying in Class IX to X on topic “Corruption can be tackled only through improving ethical values in society” ii. Essay Competition for Spouses of Employees of CIL HQ on TOPIC- “ROLE OF FAMILY IN ENHANCING ETHICAL STANDARDS IN SOCIETY” 5. Training Program for Junior Level Managers of CIL - A one day orientation program for newly recruited Junior Level Managers of CIL was organized in two batches focusing on Vigilance Administration in PSUs, Conduct, Discipline & Appeal Rules of CIL and Common Irregularities. 6. Workshops / Sensitization programmes-500 Vigilance Case Studies Vol-2 unveiled during the Vigilance Awareness Week Valedictory Function for distribution across CIL & Subsidiaries. 7. Organisation website Organisation website has been used to propagate the messages of CVC and encouraging citizens to take e-pledge. 8. Stake Holders Meet - 1. Stake Holders Meet organised with Vendors and Customers on 03.11.2016 at CIL HQ to redress their issue. 2. Stake Holder's Online feeback survey conducted through CIL Website. 9. Workshops / Sensitization programmes 1. Speech of Sadguru of Isha Foundation Coimbatore on topic “ Inner Management “ organized at CIL HQ. 2. Seminar on CVC theme “ Public participation in Promoting Integrity and Eradicating Corruption”, Concluding Ceremony and Prize distribution to winners of event organized during the week on 10.11.2016. Preventive Vigilance/ System Improvement 1. Personnel Division has been advised to create a central repository of service files of executives. 2. It is suggested to get the EIS database & applications tested, audited & certified by reputed certification agency for security & complete database management. 3. CIL may explore the possibility to tie-up with reputed hospitals/Medical Institutes to provide HAT training & qualification & the duration of the training should at least six months duration. 4. Online transfer of EMD amount directly to the dedicated account of Area/Subsidiary/CIL HQ through E-tender portal and automatic refund of EMD to unsuccessful bidders. Alternatively, transfer of EMD amount through RTGS/NEFT to dedicated account of Area/Subsidiary/CIL HQ and necessary information may be filled such as transaction-id, transaction date and EMD amount in the corresponding field of EMD. - System improvement suggestions: System improvement suggestions were made in many areas: a. DPC for promotion b. Procurement of explosives c. Testing of explosives d. Use of 3D TLS for survey of OB & Coal with phasing out of Theodolite. e. Purchase Manual f. Use of UAV & space technology for prevention of Coal pilferage & illegal mining and monitoring of environment, plantation, vegetation & water bodies. - System Improvement Studies - Studies were taken in the following areas Sl. Subject of Study 1 Measurement of OB and Coal in outsourced patches 2 Recording of performance of tyres through maintenance Logbook as per international practices. 3 CSR Policy of CIL and monitoring of projects. 4 Inventory of Land Records 5 Losses due to excessive production of coal in mines having dispatch constraints. 6 RDA initiated on CBI Reports

7 E-surveillance through VTS, CCTV, Weigh-Bridge connectivity, RFID & other IT initiatives. 8 Promotion & Transfer Policy of CIL. 9 Investment of Surplus Fund. 10 Procurement of SDL & LDH machineries and their spare parts. 11 Policy issues in procurement , e-procurement & reverse auction. 12 Standardization of NITs. 13 Recruitment process in CIL & subsidiaries. 14 Standardization of Codes in procurement items. 15 Fixation of normative coal consumption for various noncode sectors as per new coal gradation policy based on GCV system. 33. PARTICULARS OF EMPLOYEES Employee received remuneration either equal to or in excess of limits prescribed under Rule 5(2) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 during 2016-17 is given in Annexure 21. Details of Rule 5(1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 on disclosure in the Board Report with reference to remuneration of Managerial Personnel of Top 10 employees is annexed to the Report. (Annexure 21). 34. BOARD OF DIRECTORS Shri S. Bhattacharya continued as Chairman cum Managing Director throughout the year. Shri C.K. Dey Director (Finance) and Shri S.N.Prasad, Director(Marketing) were on the Board throughout the year. Shri S. Saran, CMD, CMPDIL has assumed the additional charge of Director(Technical), CIL from 31.10.2016 due to untimely demise of N. Kumar, former Director(Technical), CIL on 18.10.2016. Government of India has terminated the services of Shri R.Mohan Das w.e.f. 31.03.2017 and Shri S N Prasad has assumed the additional charge of Director (Personnel) from that date & held the charge till 19.06.17 thereafter Sri R.R.Mishra, CMD, WCL took over the charge from him. Dr A K Dubey, Special Secretary, MoC and Smt. Sujata Prasad, Joint Secretary & Financial Advisor, MoC continued as part-time official Director on the Board till 05.08.2016 and 20.06.2016 respectively. Shri R P Gupta, Joint Secretary, MoC was on board from 05.08.2016 till 29.08.2016. Shri R.K.Sinha, Joint Secretary, MoC and Shri Vivek Bharadwaj, Joint Secretary, MoC were appointed w.e.f 05.08.2016 and 30.08.2016 respectively and continued throughout the year. Mrs Reena Sinha Puri, JS &FA, MOC was appointed as official part time Director vice Sri Vivek Bharadwaj from 9th Jun,17. Ms. Loretta Mary Vas, Dr S.B. Agnihotri, Dr D.C. Panigrahi, Dr. Khanindra Pathak and Shri Vinod Jain were appointed as Independent Directors on the Board on 17/11/15 and continued throughout the year. Shri R.R. Mishra, CMD, WCL and Shri S. Saran, CMD, CMPDIL continued throughout the year as permanent invitees. Shri A.K.Gupta Addl. Member (Traffic transportation), Railway Board has been appointed as permanent invitee from 05.08.2016 and continued throughout the year. 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 39(j) of the Articles of Association of the Company, one third of retiring Directors are liable to retire by rotation shall retire at the ensuing Annual General Meeting and they are eligible for reappointment. The Board of Directors held 14 meetings during the year 2016-17. 35. Composition of Audit Committee CIL in pursuance of excellence in corporate governance formed an Audit Committee of its Board of Directors w.e.f. 20-07-2001 and the present Audit Committee was re-constituted by the Board in its 323rd Meeting held on 6th Jan'2016, consisted of four Independent Directors, one Functional Director(additional charge), one Government Nominee Director and one permanent invitee. Details are disclosed in Corporate Governance Report under point number 3.1. 36. Composition of CSR Committee Details are disclosed in Corporate Governance Report under point number 3.6. 37. Declaration given by independent directors under subsection (6) of Section 149. The following independent directors have given their consent during 2016-17 that they meet the criteria of independence as stipulated in sub-section (6) of Section 149 of the Companies Act 2013. i. Ms. Loretta M Vas ii. Dr. S.B.Agnihotri iii. Dr. D.C.Panigarhi iv. Dr. Khanindra Pathak v. Shri. Vinod Jain 38. Reappointment of Independent Directors- Section 149(10) No Director was reappointed in terms of section 149(10) of the Companies Act 2013. 39. Recommendation of Audit Committee by the Board. All the recommendations made by Audit Committee were accepted by the Board. 40. Company's policy on directors 'appointment and remuneration including criteria for determining qualifications, positive attributes, independence of a director and other matters provided under sub-section (3) of section 178. MCA vide Notification dated 5th June'2015 has exempted the above for Government companies. 41. Remuneration policy of directors, KMPs and Senior Management - Section 178(4). MCA vide Notification dated 5th June'2015 has exempted the above for directors of Government companies. 42. A statement indicating the manner in which formal annual evaluation has been made by the Board of its own performance and that of its committees and individual directors. MCA vide Notification dated 5th June'2015 has exempted the above for Government companies. 43. Contracts or Arrangements with Related Parties Related party transactions made with the subsidiary companies and that all such transactions were exempted under Regulation 23(5)(a) and (b) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 being transactions between two government companies and transactions entered between a holding and its wholly owned subsidiaries whose accounts are consolidated with holding company and placed before the shareholders at the general meeting for approval. However, the remuneration paid to Key Managerial Personnel is being disclosed separately in point no VI of Annexure 22. 44. Loan, guarantees or investments by a company under section 186 of the Act Loan, guarantees and investments made by Coal India Limited in terms of section 186 is enclosed as Annexure 23. 45. Familiarization programme of Board Members. Board of Directors are fully briefed on all business related matters, associated risk, new initiatives etc. of the company. The Board of directors were also briefed about the provisions of Companies Act 2013, (Prohibition of Insider Trading) Regulations, 2015 and SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015. As per Regulation 25 of SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015, the listed entity shall familiarize the independent directors through various programmes about the listed entity, including the following: (a) Nature of the industry in which the listed entity operates; (b) Business model of the listed entity; (c) Roles, rights, responsibilities of independent directors; and (d) Any other relevant information. As per regulation 46 of SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015 the details of the familiarization programmes is to be disclosed on the website of the company. The same is disclosed on company's website. In addition, Independent Directors were nominated to attend the trainings programmes organized by SCOPE and DPE. documents/Details of Familiarization Programmes imparted to the Independent Directors during 201617 & Cumulative till date 13062017.PDF 46. Sexual Harassment of Women at the Workplace The company has in Place an Anti-Sexual Harassment Policy in line with the requirements of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints Committee (ICC) are working at every subsidiary and office of Coal India Limited to redress complaints regarding sexual harassment. All women employees (permanent, contractual, temporary, trainees) are covered under the said policy. No sexual harassment complaint was received during the year 2016-17. 47. DIRECTORS' RESPONSIBILITY STATEMENT In terms of Section 134(3)(c) of the Companies Act, 2013, read with the Significant Accounting Policies at Note-33 and Additional Notes on Accounts at Note-34 forming part of: 1. CIL (Standalone) Accounts 2. CIL (Consolidated) Accounts It is based on such confirmation obtained from eight Indian subsidiaries of CIL viz: Eastern Coalfields Limited, Bharat Coking Coal Limited, Central Coalfields Limited, Northern Coalfields Limited, Western Coalfields Limited, Mahanadi Coalfields Limited (consolidated), South Eastern Coalfields Limited (consolidated) and Central Mine Planning & Design Institute Limited. However, for the overseas subsidiary viz. Coal India Africana Limitada, which was incorporated under Mozambique Commercial Code and for Joint Ventures viz. International Coal Ventures Private Limited, NTPC Urja Private Limited, Hindustan Urvarak & Rasayan Limited and Talcher Fertilizers Limited where CIL is not the majority shareholder, such confirmation have not been obtained. It is confirmed that: a) In the preparation of the Annual Accounts, the applicable Accounting Standards have been followed and that no material departures have been made from the same; b) The Accounting Policies have been selected and applied consistently and judgements and estimates made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and profit & loss of the company for that period; c) Proper and sufficient care have been taken for maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; d) The Annual Accounts have been prepared on a going concern basis; e) Internal Financial Controls have been laid down and that such controls are adequate and were operating effectively during the year ended 31st March'2017. f) Proper systems have been devised to ensure compliance with the provisions of all applicable laws and such systems were adequate and operating effectively. 48. ACCOUNTS OF THE SUBSIDIARIES The statement containing the salient features of the financial statements of a company's subsidiaries, associate companies and joint ventures under the first proviso to sub-section(3) of section 129 of Companies Act,2013 is enclosed as AOC 1 in Annexure 24. In terms of General Circular No.2/2011 dated 8th Feb 2011 from Ministry of Corporate Affairs, the Annual Accounts of subsidiary companies shall be made available to the shareholders seeking such information. 49. COST AUDIT The Cost Audit of your company for the year 2015-16 was conducted by M/s Musib & Co and the Cost Audit Report was approved by the Board of Directors in their 331st meeting held on 3rd August 2016. The Cost Audit Report did not contain any adverse observation/comment or qualification from the Cost Auditor. The above report was filed in XBRL mode with MCA on 29th Aug'.16. M/s. Balwinder & Associates was appointed as Cost auditor for CIL Standalone for the year 2016-17. E-form CRA-2 has been filed with MCA portal vide SRN G10080166 dated 27th Aug'16 50. SECRETARIAL AUDIT In pursuance to Section 204 of Companies Act 2013, company had conducted Secretarial Audit for the year 201617 by a practicing Company Secretary M/s Vinod Kothari & Co, Practising Company Secretaries. Their appointment was approved by the Board. The report of Secretarial Auditor is included in the Corporate Governance Report. The observations of Secretarial Auditor and Management Explanation are enclosed in Annexure 25. 51. RISK MANAGEMENT POLICY A Risk Management Charter has been approved by the CIL Board. It is being implemented in CIL HQ and its Subsidiaries. Risk Mitigation Measures are under preparation. 52. WEBLINK The following policies may be accessed on the Company's website as under:- 1. Corporate Social Responsibility Policy: documents/CIL CSR Policy New Companies Act 2013 05022016.pdf 2. Vigil Mechanism: 3. Policy for determining Material Subsidiary: documents/POLICY_FOR_DETERMINING_MATERIAL_SUBSIDIARIES_21032015.pdf 4. Related Party Transaction Policy: documents/Related Party Transaction PolicyRs.01122014(1). PDF 5. Policy on determination of Materiality under SEBI(LODR) Regulations,2015 documents/Policy on determination of%20 Materiality under SEBI LODR %20Regulations 2015 03042017.PDF 6. Policy on Preservation of documents including Archival Policy under SEBI(LODR) Regulations 2015 documents/Policy on Preservation of documents including Archival Policy under SEBI LODR Regulations 2015 17052017.pdf 53. Company CONFIRMS THE FOLLOWING:- 1. None of the Directors are disqualified from appointment as per Section 164 of the Companies Act'2013. 2. Company has not issued any Equity shares with differential voting rights, Sweat Equity shares and ESOP. 3. Since shares of CIL were issued in IPO in October'2010 and unclaimed dividend amount is less than seven years, no amount has been transferred to IEPF. 4. No Secretarial, Statutory Auditor resigned during the year 2016-17. 5. No relative of director was appointed to place of profit. 6. As per Regulation 32(4) of SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015 deviation of Proceeds of Public issue is not applicable to the company. 7. There is no deposit covered under Chapter V of Companies Act 2013. 8. There is no deposit which is not under compliance of Chapter V of Companies Act 2013. 9. There is no change in the nature of business. 10. No Director is in receipt of any commission from the subsidiary companies in which he is a director. 54. ADDITIONAL INFORMATION 1. Details in respect of frauds reported by Auditors under section 143(12) other than those which are reportable to the Central Government. : No such reported frauds as per Audit Report of Standalone as well as Consolidated Accounts. 2. Material changes and commitments, if any, affecting the financial position of the company which have occurred between the end of the FY and the date of the report : No such material changes and commitments occurred between the end of the Financial Year and the date of the report which may affect the Standalone as well as consolidated financial position of the company. 3. The names of companies which have become or ceased to be its subsidiaries, joint ventures or associate companies during the year. During the financial year 2016-17, a Joint Venture, Hindustan Urvarak & Rasayan Limited was incorporated.. The details of the subsidiaries, Joint Ventures or associates have been furnished under form AOC-1.During the financial year no subsidiaries, Joint Ventures or associates have ceased to be subsidiaries, Joint Ventures or associates. 55. ACKNOWLEDGEMENT: The Board of Directors of your Company wishes to record their deep sense of appreciation for the sincere efforts put in by the employees of the Company and Trade Unions. Your Directors also gratefully acknowledges the co-operation, support and guidance extended to the Company by various Ministries of the Government of India in general and Ministry of Coal in particular, besides the State Governments. Your Directors also acknowledge with thanks the assistance and guidance rendered by Statutory Auditors, the Comptroller and Auditor General of India and Registrar of Companies, West Bengal, Secretarial Auditor and Cost Auditor and wishes to place on record their sincere thanks to Consumers for their continued patronage. 56. ADDENDA The following are annexed. i) Pre-tax Profit of CIL & subsidiaries for 2016-17 vis-a-vis 2015-16 (Annexure 1). ii) Subsidiary wise details of Dividend income of CIL Standalone (Annexure 2). iii) The comments of the Comptroller and Auditor General of India on Standalone Financial Statements of Coal India Limited (Annexure 3). iv) Auditors Report on the Standalone Financial Statements for the year ended 31st March, 2017 including Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section 143 of the Companies Act, 2013 (“the Act”)[Annexure 3(A)]. v) The comments of the Comptroller and Auditor General of India on Consolidated Financial Statements of Coal India Limited (Annexure 4). vi) Auditors Report on the Consolidated Financial Statements for the year ended 31st March, 2017 including Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section 143 of the Companies Act, 2013 (“the Act”)[Annexure 4(A)]. vii) Observations of Auditor on Standalone Financial Statements and Management Explanation. (Annexure 5). viii) Observations of Auditors on Consolidated Financial Statements and Management Explanation [Annexure 5(A)]. ix) Subsidiary wise Coal Off-take. (Annexure 6). x) Sector-wise dispatch of coal & coal products. (Annexure 7). xi) Dispatches of coal and coal products by various modes. (Annexure 8). xii) Wagon Loading in 2016-17. (Annexure 9). xiii) Subsidiary wise details of Stock of Coal. (Annexure 10) xiv) Subsidiary wise details of Trade Receivables. (Annexure 11) xv) Subsidiary-wise payment of Royalty, Cess, Sales Tax, Stowing Excise Duty, Central Excise Duty, Clean Energy Cess, Entry Tax and Others. (Annexure 12). xvi) Subsidiary-wise Coking & Non-coking production, Production from underground and opencast mines. (Annexure 13). xvii) Subsidiary-wise Washed Coal (Coking) Production. (Annexure 13A). xviii) Subsidiary wise Overburden Removal. (Annexure 13B) xix) Population of equipment. (Annexure 14). xx) Subsidiary wise System Capacity Utilization. (Annexure 15). xxi) Project Implementation. (Annexure 16). xxii) Subsidiary wise details of Capital Expenditure. (Annexure 17). xxiii) Salient features of continuous and sustained improvement in CILs safety performance. (Annexure 18). xxiv) Subsidiary wise position of manpower and strikes and bandhs. (Annexure 19). xxv) Scholarship and Reimbursement of tuition fees and Hostel Charge and Grants sanctions to schools. (Annexure 20) xxvi) Disclosures under Rule 5(1) and Rule 5(2) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. (Annexure 21). xxvii) The extract of the annual return as provided under subsection (3) of Section 92 in Form No. MGT.9 (Annexure 22). xxviii) Loan and Advances, Guarantees, Investments made by the company under Section 186(4) of the Companies Act'2013 (Annexure 23). xxix) Statement pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014) as at 31st March, 2017. (Annexure 24) xxx) Secretarial Audit Report under Section 204 of Companies Act 2013 and Observation of Secretarial Auditor & Management Explanation (Annexure 25). xxxi) Foreign Exchange Earning and Outgo under Rule 8 of Companies (Accounts) Rules 2014(Annexure 26). xxxii) Details about Research and Development of the Company (Annexure 27). xxxiii) Disclosure as per Section 135 of Companies Act 2013 on Corporate Social Responsibility (Annexure 28). xxxiv) Significant and Material Orders passed by the Regulators or Courts.(Annexure 29). xxxv) Corporate Governance Report.(Annexure 30). For and on behalf of the Board of Directors Kolkata, 12th August, 2017 S. Bhattacharya Chairman (DIN: 00423572)


Mar 31, 2015

Dear Members,

On behalf of the Board of Directors, I have great pleasure in presenting to you, the 41st Annual Report of Coal India Limited (CIL) and Audited Accounts for the year ended 31st March, 2015 together with the reports of Statutory Auditors and Comptroller and Auditor General of India thereon.

Coal India Limited (CIL) is a 'Maharatna' company under the Ministry of Coal, Government of India with headquarters at Kolkata, West Bengal. CIL is the single largest coal producing company in the world and one of the largest corporate employers with manpower of 3,33,097 (as on 1st April, 2015). CIL operates through 82 mining areas spread over eight provincial states of India. Coal India Limited has 430 mines of which 227 are underground, 175 opencast and 28 mixed mines. CIL further operates 15 coal washeries, (12 coking coal and 3 non-coking coal) and also manages other establishments like workshops, hospitals, and so on. CIL has 27 training institutes. Indian Institute of Coal Management (IICM) is an excellent training centre operates under CIL and imparts multi-disciplinary management development programmes to the executives. Coal India's major consumers are Power and Steel sectors. Others include cement, fertilizer, brick kilns, and a host of other industries.

CIL has eight fully owned Indian subsidiary companies (direct): Eastern Coalfields Limited (ECL),

Bharat Coking Coal Limited (BCCL),

Central Coalfields Limited (CCL),

Western Coalfields Limited (WCL),

South Eastern Coalfields Limited (SECL),

Northern Coalfields Limited (NCL),

Mahanadi Coalfields Limited (MCL) and

Central Mine Planning & Design Institute Limited (CMPDIL).

In addition, CIL has a foreign subsidiary in Mozambique viz. Coal India Africana Limitada (CIAL).

The mines in Assam i.e. North Eastern Coalfields is managed directly by CIL. Similarly, Dankuni Coal Complex is on lease with South Eastern Coalfields Limited.

MCL has three subsidiaries, namely MNH Shakti Ltd., MJSJ Coal Ltd. and Mahanadi Basin Power Ltd.

a. MNH Shakti Limited

MNH Shakti Ltd was incorporated on 16th July, 2008 as a Joint Venture Company of MCL. MNH Shakti Ltd had been formed for operation of Talabira OCP block where MCL is holding 70% share, Neyveli Lignite Corporation Ltd 15% share and Hindalco Industries Ltd. balance 15% share. The Share Capital of MNH Shakti Ltd. as on 31-03-2015 was Rs. 85.10 Crore. The Hon'ble Supreme Court of India in its judgment dated 25.08.2014 and order dated 24.09.2014 declared allocation of Talabira - II and Talabira - III coal blocks allocated to MNH Shakti Ltd. as illegal and has quashed the allocation.

b. MJSJ Coal Limited

MJSJ Coal Ltd was incorporated on 13th August, 2008 as a Joint Venture Company of MCL. MJSJ Coal Ltd had been formed for operation of Gopalprasad OCP where MCL is holding 60% share, JSW Steel Limited and JSW Energy Limited 11% share each and Shyam Metalics and Energy Ltd (formerly known as Shyam DRI Power Limited) and Jindal Stainless Limited 9% share each. The paid up Share Capital of MJSJ Coal Ltd. as on 31-03-2015 was Rs. 95.10 Crore. The Hon'ble Supreme Court of India in its judgement dated 25.08.2014 and order dated 24.09.2014 declared allocation of Utkal-A coal block allocated to MJSJ Coal Ltd. as illegal and has quashed the allocation.

c. Mahanadi Basin Power Limited

Another Company "Mahanadi Basin Power Limited (MBPL)" was incorporated on 2nd December, 2011 and certificate for commencement of business issued by ROC on 06-02- 2012. MBPL had been formed as an SPV with wholly owned subsidiary of Mahanadi Coalfields Ltd for power generation of 2x800 MW through Pit Head Power plant at Basundhara Coalfields. The Share Capital of Mahanadi Basin Power Limited as on 31-03-2015 was Rs. 5 Lakhs.

Subsidiaries of SECL

SECL had incorporated two subsidiary companies viz.

M/s Chhattisgarh East Railway Ltd on 12th March'2013 and M/s Chhattisgarh East- West Railway Ltd on 25th March'2013 with 64% holding in each of the subsidiaries for construction of railway lines for expeditious evacuation of coal.

1. NOTABLE ACHIEVEMENTS DURING 2014-15

a. CIL achieved a production of 494.24 MT of coal, removed 886.53 MM3 of OB and achieved an off- take of 489.38 MT with a growth of 6.88%,9.92% & 3.77% respectively compared to the last year.

b. All subsidiaries achieved a growth in production compared to the last year. There was an impressive growth in OB removal during 2014-15. Except MCL, all other subsidiaries had achieved a growth in OB removal. The negative growth in MCL was on account of land acquisition problems. All subsidiaries other than BCCL had achieved a growth in off-take compared to the last year. The negative growth in BCCL was due to less supply of wagons.

c. ECL came out of BIFR. BCCL was awarded Mini Ratna status.

d. Government of India divested further 10% of its holding in CIL in January 2015. An amount of Rs. 22,557 crores was realized. This was the highest divestment amount received by the GoI by selling its stake in any company till date.

e. CIL Board had approved 7 Coal Projects having an annual capacity of 73.42 MT.

f. Project Report for setting up of Super Critical Thermal Power Project (2X800MW) at MCL namely Mahanadi Basin Power Limited was approved by CIL Board.

2. FINANCIAL PERFORMANCE

2.1 Financial Results (CIL consolidated)

CIL is one of the largest profit making and tax & dividend paying enterprises. CIL and its subsidiaries had achieved an aggregate pre-tax profit of Rs. 21,583.92 crores for the year 2014-15 against a pre-tax profit of Rs. 22,879.54 crores in the year 2013-14.

(Rs. in crores)

Company 2014-15 2013-14

(CIL subsidiaries/ CIL standalone) Profit Profit

ECL ( ) 1782.41 ( ) 1299.28

BCCL ( ) 1154.22 ( ) 2089.01

CCL ( ) 2740.34 ( ) 2525.87

NCL ( ) 3713.47 ( ) 3355.71

WCL ( ) 544.79 ( ) 325.86

SECL (consolidated) ( ) 5659.46 ( ) 7202.40

MCL (consolidated) ( ) 5314.24 ( ) 5429.08

CMPDIL ( ) 39.33 ( ) 34.60

CIL (standalone) ( ) 13651.89 ( ) 15420.47

Sub-Total ( ) 34600.15 ( ) 37682.28

Less: Dividend from Subsidiaries (-) 13011.72 (-) 14406.82

Total ( ) 21588.43 ( ) 23275.46

Adjustment for exchange rate variation on Current Account of overseas subsidiary ( ) (4.51) ( ) 0.72

Adjustment for waiver of accrued interest of BCCL - (-) 396.64

Overall Profit as per Consolidated Accounts ( ) 21583.92 ( ) 22879.54

CIL as a group had achieved a post tax profit of Rs. 13,726.70 crores in 2014-15 (excluding share of minority loss of Rs. 0.09 crore; previous year Rs. 0.04 crore) as compared to Rs. 15,111.67 crores in 2013-14.

Highlights of performance

The highlights of performance of Coal India Limited including its Subsidiaries for the year 2014-15 compared to previous year are shown in the table below:

2014-15 2013-14

Production of Coal (in million tonnes) 494.24 462.42

Off-take of Coal (in million tonnes) 489.38 471.58

Sales (Gross) (Rs./Crores) 95434.76 89216.86

Capital Employed (Rs./Crores) Note- 1 76554.91 74891.87

Capital Employed (Rs./Crores)- excluding capital work in progress and 71395.54 70576.06 intangible assets under development.

Net Worth (Rs./Crores) (As per Accounts) 40343.33 42391.86

Profit Before Tax (Rs./Crores) 21583.92 22879.54

Profit after Tax (Rs./Crores) 13726.70 15111.67

PAT / Capital Employed (in %) 17.93 20.18

Profit before Tax / Net Worth (in %) 53.50 53.97

Profit after Tax / Net Worth (in %) 34.02 35.65

Earnings Per Share ( Rs.) 21.73 23.92

(Considering Face Value of Rs.10 per share)

Dividend per Share (Rs.) 20.70 29.00

(Considering Face Value of Rs.10 per share)

Coal Stock (Net) (in terms of No. of months Net Sales) 0.79 0.72

Trade Receivables (Net) (in terms of No of Months of Gross Sales) 1.07 1.11

Note-1:

Capital employed = Gross Block of Fixed assets (including capital work in progress and intangible assets under development) less accumulated depreciation plus current assets minus current liabilities.

Transfer to Reserves

During the year 2014-15, a sum of Rs. 2578.50 crore was transferred to General Reserve out of CIL (Consolidated) profits. This includes transfer of Rs. 1338.34 crore out of CIL (Standalone) profits.

2.2 Dividend Income and Pay Outs (CIL- standalone)

While the financial statements of both CIL standalone and CIL consolidated are presented separately, it is only the CIL (standalone) company which is listed and relevant for dividend payment to its shareholders. The dividend to its shareholders are paid out of CIL's standalone income, the major part of which constitutes of the dividend income received by it (CIL- standalone) from its five profit making subsidiaries i.e. CCL, NCL, WCL, SECL and MCL.

The breakup of such dividend (interim final) received and accounted for during the year from different subsidiaries are given below:-

During the year Coal India Limited (standalone) has paid a total dividend (by way of interim dividend) of Rs. 13074.88 crores @ Rs. 20.70 per share (Rs. 18317.46 crores @ Rs. 29.00 per share) on 6316364400 number of Equity Shares of Rs. 10/- each fully paid up. Out of above total dividend, the share of Govt of India was Rs. 10414.14 crores and for other shareholders, Rs. 2660.74 crores. (Previous year - Govt of India - Rs. 16485.71 crores and other shareholders - Rs. 1831.75 crores)

2.3 Observation of the Statutory Auditors

The Statutory Auditors have given their observations on the standalone and consolidated accounts of the Company for the year ended 31st March'2015. The Auditors' observations in terms of Section 134(3)(f)(i) of the Companies Act'2013 and Management Explanation are enclosed as Annexure-V and Annexure-XV(B).

3. COAL MARKETING

3.1 (a) Off-take of Raw Coal

Off-take of raw coal continued to maintain its upward trend and reached 489.377 million tonnes for fiscal ended March 2015, surpassing previous best of 471.581 million tonnes achieved during the last year, i.e., an increase of 3.8 % over the last year. The overall raw coal off-take achieved was 94.1 % of the Annual Action Plan Target.

Company-wise target vis-a-vis actual off-take for 2014-15 and 2013-14 are shown below:

From the above, it may be seen that ECL had not only exceeded its target but also achieved a positive growth compared to the last year.

Barring BCCL, all other coal companies had registered a positive growth in off-take.

Off-take suffered mainly due to:

- Transportation constraints resulting from seizure of transport trucks for election purposes in almost all the coal companies during the General Election in the First Quarter.

- Major accident near Latehar affecting traffic movement in Mughalsarai section for 3 days during September'14.

- Production constraint and ageing infrastructure caused frequent CHP breakdown at various projects at NCL, delay in renewal of transportation contracts at the coal companies, Local agitation / Law & order problem at CCL/ MCL.

- Restriction in transportation at MCL during 11AM to 3 PM by Odisha Govt, in the months of May-June.

- Restriction imposed by District Administration for transportation of coal between 9.00 AM to 5.00 PM resulting in loss of 4 to 5 rakes per day at MCL-Ib Valley.

- Inadequate availability of wagons at MCL-Ib Valley, SECL-Korba and at ECR-served sidings of BCCL/CCL. Coal transportation constraints at SECL due to the delay in finalization of ESM contracts & transportation constraints at WCL.

- Heavy rain during monsoon and effect of Cyclone Hud-Hud at NCL, MCL and CCL during October'14.

- Strike by Trade Union affecting off-take & loading during January'15 and railway restriction for up-country movement / inadequate availability of wagons during the 4th quarter.

Sector-wise break-up of dispatch of coal & coal products in 2014-15 against the target and last year's actual is given below:

In order to cater to the enhanced requirement of power sector due to decrease in stock at power plants and increase in number of power plants carrying critical coal stock, quantity offered through e- auction was regulated leading to negative growth in other sector.

3.2 Dispatches of coal and coal products by various modes

Dispatches of coal and coal products during 2014-15 went upto 489.982 million tonnes from 471.484 million tonnes registering a growth of 3.9 %. Overall dispatch by Non-Rail mode had been almost 101% of the target. Growth in despatches via Rail mode was 2.7 % whereas in the overall Non-Rail mode it increased by 5.4 %. Road despatches increased by 8.2% over the previous year. Movement by MGR was 1.5% above the last year.

Dispatch of coal and coal products by various modes for the years 2014-15 and 2013-14 is given below:

3. 3 Wagon Loading

Overall wagon loading materialization was 89.1 % of the target. This was achieved due to sustained efforts and regular coordination with railways at various levels. The increase in loading over the last year was of 4.3 rakes per day. Company-wise performance showed that WCL achieved its target. ECL, BCCL, CCL, WCL, MCL &NEC exceeded last year's level of loading.

Wagon loading suffered mainly due to intermittent law and order problem at CCL and MCL, delay in finalization of ESM road transport contracts at SECL, transportation constraints at WCL and CHP problem at various projects of NCL.

3.4 Consumer satisfaction

i. In order to ensure enhanced customer satisfaction, special emphasis was given to quality management. Various steps are taken to monitor quality right at the coalface apart from bringing further improvements in crushing, handling, loading and transport system.

ii. CIL has built coal handling plants for a capacity of about 296 MT per annum so as to maximize dispatches of crushed/sized coal to its consumers. In addition, Washeries at BCCL, CCL, WCL and NCL have adequate crushing / sizing facilities to the tune of about 36.8 million tonnes.CIL has also initiated action to establish 15 more coal washeries with combined capacity of 112.6 Mty.

iii. Measures like picking of shale/stone, selective mining by conventional mode as well as by surface miners, adopting proper blasting procedure/technique for reducing the possibility of admixture of coal with over-burden materials and improved fragmentation of coal etc. are being taken.

iv. Surface Miners have been deployed by CIL for selective mining at some of the OCP mines to improve the quality of coal. Action is being taken for deployment of more surface miners in other OCP mines where geo-mining condition permits their usage. Already 56 Surface Miners have been deployed in CIL at opencast mines which are working satisfactorily.

v. Joint sampling system is in vogue for major consuming sectors e.g. power utilities, steel, cement, sponge iron covering more than 95% of total production of CIL. Large consumers having annual quantity of 0.4 MT or more and having FSA have been covered under sampling.

vi. From 1st October, 2013, independent 3rd party sampling and analysis was introduced for more transparency in the system. Subsidiary coal companies have procured 121 Bomb Calorimeters for more accurate and transparent results of analysis of coal samples. The sampling and analysis are being done in the presence of customers as per provision of FSA at loading end, and based on the results, the customers are paying coal bills as per the analyzed grades. During 2014-15 the achievement of grade conformity in respect of sampling and analysis was to the tune of 97.17% in respect of supplies to power sector.

vii. Pursuant to the decision taken in the meeting with Association of Power Producers during June 2014, on and above the existing system of coal sampling at the loading end, it was decided that power producers may also engage their Third Party Agency from a list of 25 empanelled agencies for taking part in drawing coal samples and analyzing the same. In view of the above, PUs / IPPs have started selecting agencies w.e.f. December' 2014 onwards and finalized them except a few who are in process of finalizing.

viii. Electronic weighbridges with the facility of electronic printout have been installed at rail loading points to ensure that coal dispatches are made only after proper weighment. For this purpose, Coal Companies have installed 157 rail weighbridges in the Railway Sidings and 569 road weighbridges for weighment of trucks. Coal companies have also taken action for installation of standby weighbridges to ensure 100% weighment.

ix. 24 Auto Mechanical Samplers (AMS) are also working in subsidiary coal companies for coal sampling for the bulk consumers eliminating chances of biasness in the sampling process. Procurement of further AMS is under process. Thought process for installing online analyzers in new washeries on conveyor belts for proper quality management has also started.

x. In order to ensure consumer satisfaction and resolve consumer complaints, special emphasis has been given to quality management and redressal of consumer complaints. Percentage of complaint resolved was 99.44% [April 2014 to March 2015].

xi. CIL has taken initiative and is trying its best to get NABL [National Accreditation Board for Testing and Calibration Laboratories] accreditation for main laboratories of different subsidiary coal companies. One lab at MCL has been accredited by NABL in addition to the earlier one existing at WCL.

3.5 Marketing of Coal

Status of execution of Fuel Supply Agreements and performance of e-auction:

Supply of coal was made to various consumers including Power Sector under the applicable provisions of the New Coal Distribution Policy (NCDP). Due to the overall deficit in availability of coal considering the projected coal production from domestic sources and commitments made through signing of FSAs/issuance of Letter of Assurances (LOA) supplies under the FSAs has been pegged at various levels of commitments (trigger). Power sector being the major consuming sector having significant importance in the economy, supplies to power sector has been guided as per the government directives and polices.

(i) For power stations commissioned on or before 31.03.2009, a quantity of 306 million tonnes had been considered to be supplied through bilateral legally enforceable Fuel Supply Agreements (FSA) with a trigger level of 90%. The total quantity covered under FSA against the allocation as on March'15 was 305 million tonnes.

Apart from the above, 180 Letter of Assurances has been issued to power plants by subsidiary companies of CIL, as per the recommendations of various SLC (LT) meetings for a quantity of about 426.86 Million tonnes. Further as per Presidential Directives dated 16-4-2012 and dated 17-7- 2013 the list of Power Plants and aggregate capacity were revised. A total 173 TPPs were listed with an aggregate capacity of 78535 MW. Till 31.3.2015, 161 FSAs have been signed with Power Plants for an aggregate capacity of 74275 MW. However, TPPs having capacity of 57730 MW have furnished long-term Power Purchase Agreement (PPA) and qualify for commencement of coal supply subject to commissioning etc. After resolving issues with NTPC, NTPC has signed FSA for its power plants for plant capacity of 13510 MW both for its owned and Joint venture Plants.

(ii) In addition, in terms of Presidential Directive dated 17th July'13, coal is being supplied to power houses of 4660 MW having no fuel linkage with CIL on best effort MoU basis on the condition that such supplies do not adversely affect the availability of coal for the identified plants of 78000 MW capacity.

(iii) Out of 1208 valid linked units other than power and steel plants with eligible FSA quantity of 76.24 million tonnes, 762 units have operative FSAs for 50.92 million tonnes. FSAs of the existing consumers were signed in 2008.Tenure of these FSAs being 5 years; many of the FSAs were renewed.

(iv) For supply of coal to SME sector, 8 million tonnes was earmarked by CIL for allocation to agencies nominated by the State Govt's/ UT's. 14 states / UT's had sent nomination of 18 state agencies for the year 2014-15 out of which 15 state agencies signed FSAs for 3.45 million tonnes and drawing coal.

(v) After implementation of NCDP, 417 LOAs were also issued to consumers of sponge iron, CPP and cement as per the recommendations of various SLC (LT) meetings for a quantity of 63.86 million tonnes per annum. Of these, 333 FSAs have been concluded till date for a quantity of 45.01 million tonnes per annum. Out of these, 226 FSAs are active as on date for a quantity of 28.03 million tonnes per annum.

(vi) As per the provisions of FSA, CIL undertook import of coal for the power plants opted for taking the same through CIL during the 3rd and 4th quarter of 2014-15. Out of the total quantity firmed by the power plants for about 5 LT, till March 2015,supply was made for 3.3 LT and balance supply was about to be completed.

(vii) Under Forward e-Auction scheme during the year ended March'15, quantity allocated was 3.593 million tonnes as against 4.094 million tonnes allocated during the last year. During the period under review, 45.211 million tonnes of coal was allocated under spot e- auction to the successful bidders as against 58.125 million tonnes of coal allocated during the last year. The notional gain through Spot e-Auction over & above the notified price was 63.7% during 2014-15.

3.6 Coal Beneficiation

At present, CIL has a total coal washing capacity of 36.8 million tonnes per year (Mty) through 15 existing washeries, of which 12 are coking and 3 non coking with 23.30 Mty and 13.5 Mty capacity respectively. In addition to this, CIL plans to set up further 15 washeries having state-of-the-art and innovative technologies in the field of coal beneficiation with an aggregate throughput capacity of 112.6 Mty. Out of these, 6 are planned to wash coking coal with a cumulative capacity of 18.6 Mty, 3 of these being at various stages of construction and LOI for 2 more being in the offing. LOA/LOIs for 3 of the balance 9 non-coking coal washeries have been issued.

4.5 Future Outlook

CIL has envisaged a coal production of 908.10 Mt in the year 2019-20 with a CAGR of 12.98 %. In 2015-16, the target of coal production was 550.00 Mt with an annualized growth of about 11 %. In the terminal year of XII Plan (2016-17), the envisaged coal production is revised to 597.60 Mt against 615.00 Mt originally projected in XII Plan document.

The capital expenditure for the year 2015-16 has been projected at Rs. 5990.50 crores. In addition there is also an ad-hoc provision of Rs. 500 crores. for acquisition of coal assets abroad and development of coal blocks in Mozambique. In addition, company planned to invest Rs. 4150 crores in various infrastructure projects during 2015-16.

5. POPULATION OF EQUIPMENT

Population of Major Opencast Equipment (Heavy Earth Moving Machinery) as on 1.4.2015 and on 1.4.2014 along with their performance in terms of availability and utilisation expressed as a percentage of CMPDI norm is tabulated below:

8. PROJECT FORMULATION

8.1 Preparation of Reports: As prioritized by subsidiary companies of Coal India Limited, preparation of Project Reports (PR) for new/ expansion/re-organisation mines was carried out by CMPDI during the year 2014-15 for building an additional coal production capacity to the tune of 116 Mty. During the period, a total of 269 reports were prepared including 16 Geological Reports, 30 Project Reports, 174 Other Reports (includes 2 Master Plans of Coalfields and 3 Operational Plans).

Further expert consultancy services were also provided in the field of Environmental Management and Monitoring, Remote Sensing, Energy Audit and Benchmarking (Diesel & Electrical) , Physico-mechanical tests on Rock and Coal Samples, Subsidence Studies, Strata Control, Non-Destructive Testing (NDT), Controlled Blasting & Vibration Studies and Explosive Utilisation, Ventilation/Gas Survey of UG mines, Mining Electronics, Petrography and Cleat Study on coal samples, Coal Core Processing & Analysis, Washability tests, Soil Erosion Study, Slope Stability Study, Effluent/Sewerage Treatment Plants, etc.

Mining Projects: 49 coal mining projects are running behind the schedule due to the delay in acquisition of land, associated R&R issues in addition to the delay in obtaining forestry and environmental clearances. In addition, 33 projects are running behind the schedule due to lack of Railway Infrastructure facilities for coal evacuation, other problems such as delay or discontinuance of work by contractor, non participation in tender, law and order problems etc.

Non Mining Projects

Majority of 13 non mining projects are running behind the schedule due to discontinuance of work by contractor, law and order problem in addition to the delay in acquisition of land and associated problems of rehabilitation and grant of environmental & forest clearances.

8.3 Projects Sanctioned (Costing Rs. 20 Crores & above)

a) No advance action proposal has been sanctioned during the year 2014-15.

b) Projects sanctioned by CIL Board.

7 coal mining projects for an ultimate capacity of 73.42 Mty and a total capital investment of Rs. 7951.17 Crores have been sanctioned by CII Board during the year 2014-15

8.5 Steps taken to Achieve One Billion Coal Production in 2019-20

One Billion Tonne production essentially is a synergic effort with coal bearing states and railways to access the resources and speed up logistics for coal evacuation.

Coal India has decided to put its best foot forward with the help of all concerned agencies and take its production into higher growth trajectory. Contribution from identified projects will be 908 Million Tonnes and identification of projects for the balance quantity is in progress.

Group wise Production from Projects

Existing coal projects are envisaged to contribute about 165 Million Tonnes (MT), projects under implementation are likely to contribute 561 MT. Future projects are planned to produce 182 MT during the year 2019-20.

Contribution from Subsidiaries

Projected contribution from MCL and SECL will be to the tune of 250 Mt and 240 Mt respectively during the year 2019-20. Production contribution from the subsidiary companies during the year 2019 - 20 have been projected as under:-

Eastern Coalfields Limited - 62 MTs;

Bharat Coking Coal Limited - 53 MTs;

Central Coalfields Limited - 133 MTs;

Northern Coalfields Limited - 110 MTs;

Western Coalfields Limited - 60 MTs;

South Eastern Coalfields Limited - 240 MTs;

Mahanadi Coalfields Limited - 250 MTs.

Major Challenges

The dream of providing 1 Billion Tonne of coal to the Nation will be achieved only through the concerted efforts of CIL, Railways and State Governments. Three critical railway lines, mechanization through latest technology, upgrading skills of employees, speedy acquisition of land, expeditious environmental and forest clearances and fast track state level clearances are crucial for realization of 1 Bt coal production by CIL.

Key Strategies

(I) Critical Railway Links - Collaboration with State Govt. & Railways

There are a few coalfields in the country which have huge production potential but are bereft of rail linkages for evacuation of coal produced. Among these, 3 rail lines linked to CCL (Jharkhand), MCL (Odisha) and SECL (Chhattisgarh) are critical and expected to play a key role in evacuation of coal.

To monitor and speed up the commissioning of these three rail links 'Special Purpose Vehicle' (SPVs) have been formed in tripartite partnership among Ministry of Railways, Ministry of Coal and the respective State Governments. IRCON and RITES Limited will have a major role in developing and maintaining following three rail links and other rail dispatch logistics like railway sidings.

(II) Technology Development

(a) Exploration capacity is planned to be augmented with more use of hydrostatic drills, geophysical loggers, 2D/3D Seismic Survey Technology and Optimization of number of coring boreholes based on the complexity of geology of the block.

(b) Introduction of high capacity equipment, Operator Independent Truck Dispatch Systems, Vehicle Tracking System using GPS/ GPRS, CHP and SILOS for faster loading and monitoring using laser scanners have been planned to augment coal production from opencast mines.

(c) Introduction of Continuous Miner Technology on large scale, Long Wall Technology at selected places, Man Riding system in major mines and Use of Tele - monitoring techniques have been envisaged to increase production from underground mines.

(III) International Collaboration - Mine Developers & Operators (MDO)

A Model Contract Agreement has been approved by CIL Board and circulated to subsidiary companies for implementation. This will help infusion of new technology and efficiency in CIL coal mining projects.

(IV) Role of HR

HR division is charting out a plan of recruiting multi-disciplinary professional skill upgradation of existing employees and identifying areas of improvement etc.

Other Improvement Areas

(i) Coal Washing - A step towards quality improvement

To make the product better quality, CIL has decided to bring in consistency in quality by setting up of 15 coal washeries of which 6 are coking coal and 9 non coking coal with a total proposed washing capacity of 112.6 million tonnes / year.

(ii) System Improvements

Introduction of e-procurement of equipment and spares, e-tender of work and services, implementation of Coal Net, establishment of connectivity, revision of guidelines and manuals, use of GPS for monitoring operational efficiency in road transport of coal have been planned to improve the overall system.

9. CONSERVATION OF ENERGY

(i) CIL's subsidiaries have undertaken the following measures, interalia to conserve energy:

- CMPDIL has undertaken energy conservation studies in 2014-15 and conducted Diesel Audit & Benchmarking as well as Electrical Audit & Benchmarking in selected opencast mines situated in different subsidiaries of CIL by BEE accredited Energy Auditors. The study revealed that there is an aggregate saving potential of 18420 kilo litres / year in diesel consumption and 760 lakh units / year in electric power consumption and action has accordingly been taken in line with the recommendations of the above study.

- Project-wise specific consumption of diesel is monitored compared to benchmarking for selected opencast projects (76) of different subsidiaries of CIL.

- Power factor above 95% is maintained during 2014-15 by suitably placing power capacitors.

- Energy efficient LEDs are widely used for better conservation of energy.

- Auto-timer switches for street lights are in use in mine premises, CHPs, residential areas etc. which further adds saving in power consumption.

- Power supply systems have been re-organized in suitable places by laying cables through bore holes in UG mines to reduce power losses.

- Various energy conservation measures like procurement of energy efficient lights and fittings, higher starred rating ACs, installation of energy meters / power factor meters / demand controllers etc. for monitoring and control of energy, elimination or reduction of stage pumping as far as practicable, energy conservation measures in HEMM etc. have been taken and general awareness propagated among all concerned for efficient use of energy.

- Demand side management is done by improving load factor and limiting maximum demand wherever practicable by staggering avoidable load from peak hours to off-peak hours.

(ii) In addition to the above, CIL is also pursuing use of alternative energy sources. Various steps have been taken for utilizing solar power as an alternate source of energy, some of which are as stated below:

- Possible locations have been identified for installation of roof-top solar plants over service building, workshop, hospital, canteen, guest house etc. at different subsidiaries of CIL.

- At present, one 2.016 MWP grid-connective solar power plant has been commissioned at MCL HQ premises on 13.10.2014.

- A roof top solar plant (grid-connective) of 200 kwp capacity has been installed on 01.09.2014 in CMPDIL Campus, Ranchi.

- One roof top grid-connective solar plant of 140 kwp capacity has been installed at CIL's corporate office building at New Town, Rajarhat, Kolkata.

11. CAPITAL STRUCTURE

The authorized share capital of the company as on 31.03.2015 was Rs. 8904.18 crores, distributed between Equity and Non-cumulative redeemable preference shares as under:

(i) 800,00,00,000 Equity Shares of Rs. 10/- each (Previous Year 800,00,00,000 Equity Shares of Rs. 10/- each) Rs. 8000.00 crores

(ii) 90,41,800 Non-cumulative 10% redeemable Preference Shares of Rs. 1000/- each (Previous Year 90,41,800 Non-cumulative 10% Redeemable Preference Shares of Rs. 1000/- each) Rs. 904.18 crores

Total Rs. 8904.18 crores

Listing of shares of Coal India Limited in Stock Exchanges:

Pursuant to divestment of 10% of total equity shares held by Hon'ble President of India (Govt. of India), to the public, the shares of Coal India Limited is listed in two major Stock Exchanges of India, viz. Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on and from 4th November, 2010.

During F.Y. 2013-14, Govt. of India had further divested 0.35% of total Equity Shares equivalent to 22037834 number of equity shares by way of placement of such shares in Central Public Sector Exchange Traded Fund (CPSE-ETF).

Further Divestment by Govt. of India through OFS:

Govt. of India further divested 631636440 number of equity shares i.e., 10% of the total share capital, on 30.01.2015 by way of Offer For Sale (OFS) route through Stock Exchanges. Post such divestment, Govt. of India holds 79.65% of the total equity share capital as on 31.03.2015.

13. INTERNATIONAL CO-OPERATION

Coal India is envisaged for foreign collaboration with a view to:-

- Bring in proven and advanced technologies and management skills for exploiting UG and OC mines and coal preparation.

- Exploration and exploitation of Methane from Coal bed, abandoned mine, ventilation air, shale gas, coal gasification etc.

- Locating overseas countries interested in Joint Venture in the field of coal mining with special thrust on coking coal mining.

The priority areas included acquisition of modern and high productive underground mining technology, introduction of high productive opencast mining technology, working in underground in difficult geological conditions, fire control and mine safety ,coal preparation, application of 3D seismic survey for exploration , extraction of coal bed methane, coal gasification, application of Geographical Information System, satellite surveillance, environmental control, overseas ventures in coal mining.

CIL would endeavour to acquire suitable technology through international bidding. Bilateral cooperation may also be encouraged for locating availability of cost effective and latest technologies in the aforesaid areas. CIL, therefore, has been following both the routes.

Following are the details of activities that took place with various countries during 2014-15.

FOREIGN COLLABORATION

Indo-US Collaboration:

Status of on-going projects under Indo-US CWG:

a) Development of Coal Preparation Plant Simulator:

The identified US consultant M/s Sharpe International LLC, USA (SI) was awarded the work in October 2009 for development of Coal Preparation Plant Simulator. Total work was split into 18 activities, out of which 11 activities were completed and payment to the tune of 40% value had been released in line with the provision of the contract. Later in October 2013, the SI expressed their inability to complete the work. The US representatives were requested to take up the matter with M/s Sharpe for a meaningful conclusion of the project. The US side has advised to contact Mr. Carl Jacobson in this regard. The issue has been taken up with Mr. Carl Jacobson to obtain his willingness to complete the project in accordance with the existing contract.

b) Cost Effective Technology for Beneficiation and Recovery of Fine Coal:

The US DOE had identified Virginia Tech University (VTU) for establishing an efficient technique for beneficiation & dewatering of Indian coking coal mines through testing of coal samples in lab and pilot plants at VTU for identification of state-of-the-art technologies based on which a demonstration plant was to be installed in Sudamdih washery in BCCL. A joint project proposal was drawn and approved by CIL R&D Board in December'2010. The VTU, however, expressed its inability to sign an international agreement and as such the project could not be started. During the 10th Indo-US CWG meeting in New Delhi on 10th March 2014, the US representatives were requested to take up the matter with VTU for meaningful conclusion of the project. The US side has advised to contact Dr. Roe Hoan Yoon of Virginia Tech for further discussion in this regard. The issue has been taken up with Dr. Roe Hoan Yoon to obtain methodology for execution of the assignment.

New Areas of Collaboration

a) Underground Coal Gasification (UCG): UCG is one of the key areas under Indo-US collaboration. A project brief for capacity building in the field of UCG development has been sent to MoC for consideration under India-US Coal Working Group, for the development of UCG in CIL command area. A demonstration project for commercialization is being contemplated under R&D effort by CMPDI/CIL. The project will be taken up subject to the competent approval.

b) Planning large capacity opencast mines: National Energy Technology Laboratory (NETL), USA has been entrusted with the responsibility for identifying suitable US agencies for cooperation in this area. NETL has communicated to Norwest. As advised by the US side, Norwest Corporation and Art Sullivan, were contacted by email on 8th September 2014. Response from both was received. Preliminary information on the subject has been received from Art Sullivan, and further talks are in progress. CMPDI is in the process of preparing a proposal with Art Sullivan Mine Services, for jointly working on 'Mine Safety, Occupational Health and Risk Management' in large opencast coal mines.

c) Projects on sustainable mine closure activities and mining wasteland to be utilized as a source of livelihood for local community were proposed to be carried out with the help of the US agencies. For this purpose, a technical presentation was made by CMPDI on 10th March, 2014 in Delhi and possible areas of cooperation were discussed. It was advised by the US Side to contact Norwest Corporation & Art Sullivan Mine services for further assistance. Response from Wanda I. Burget, VP, Environmental Services, Norwest Corporation was received vide their e-mail dated 18.09.2014. As desired, details provided to them by e-mail on 31st December 2014. Further, response from them was again received vide e-mail dated 08.01.2015. As desired by Norwest Corp, the area of co-operation were identified and communicated. Norwest Corp has been requested vide our e-mail dated 27.02.2015 for preparing a formal proposal with cost estimates.

Indo-EU Collaboration

Status of ongoing projects

A proposal titled "Introduction of a new underground mining technology at North-East Coalfields in Assam" was put to Indo-EU Working Group on clean coal technology for consideration in 2012. The feasibility study to design a suitable mining technology and operation was awarded to Spanish Consortium led by AITEMIN. AITEMIN has already started their work since December 2013. The members from Spanish Consortium visited Tipong UG mine of NEC, Assam during 10th - 14th February 2014. During the visit, they had detailed discussion with concerned CMPDI & NEC authorities and collected necessary data/information regarding the aforesaid work. The Feasibility Study Report, as reported by AITEMIN, has already been submitted to European Commission on 10th October.'14 according to the contract terms. However, the same is yet to be received at CMPDI.

New Areas of Collaboration

During 8th India-EU CWG meeting held in Chennai from 28th - 29th November'13, a presentation was made by CMPDI on reclamation practices, land management and utilization of mine voids for storage of mine water which is generally of good quality. Technical knowhow from EU was sought to bring back the post-mining land use pattern as existing before the mining and utilization of the same for income generation for the local community. A presentation on the requirement of the technical assistance was made by CMD, CMPDI during the 9th India-EU CWG meeting held in Germany from 10th - 11th September.'14. Further work to be undertaken on collaboration.

Indo-Australian Collaboration

VAM project under NCEF, CMPDI, on behalf of CIL, is contemplating to take up a project on mitigation and utilization of Ventilation Air Methane (VAM) at Moonidih, BCCL, with CSIRO, Australia under

National Clean Energy Fund (NCEF) of Government of India. A project proposal for implementation of the project is under consideration. The project will be taken up subject to competent approval of the Government.

Other activities through international cooperation

a) CMM/CBM Clearinghouse

India CMM/CBM Clearinghouse is a non-profit, non- governmental organization established under the aegis of Ministry of Coal, Govt. of India and United States Environmental Protection Agency (USEPA) with an aim to contribute to the commercial development of CMM/CBM in India.

The clearinghouse was established at CMPDI, Ranchi in November, 2008 with an objective to promote CMM/CBM industry in India. The clearinghouse functions under the aegis of Ministry of Coal (MoC), Govt of India and United States Environmental Protection Agency (USEPA).The term of the Clearinghouse is proposed to be extended for a further period of 3 years upto November, 2018.

b) Research & Development Activities

i) R&D Project on "Green House Gas Recovery from coal mines and coal beds for conversion to Energy":

A multi-organization, multi-nation international collaborative project with 12 participating organizations and 5 countries (India, China, UK, Slovenia, Slovakia) and funded by European Union Research Commission (EURC) is being pursued at Moonidih mine of CIL by CMPDI. The project duration is upto March, 2015.

ii) R&D project on "Assessment of Prospect of shale gas in Gondwana basin with special reference to CIL areas"

For assessing the potentiality of shale gas in Gondwana basin with reference to CIL areas, a project with M/s Advanced Resource International (ARI), USA has been completed in December, 2014. Under R&D effort it is interpreted that Shale horizons in Jharia coalfield and East Bokaro coalfield qualify for Shale gas exploration as deeper zones contain more gas in its pore space because of higher confining pressures. Moreover, the same is supplemented by pyrolysis data of samples.

14. COAL VIDESH DIVISION

(A) Activities of Coal India Africana Limitada (CIAL), Mozambique.

The prospecting licenses for coal, having numbers. 3450L & 3451L, covering a total area of 224 square kilometres were granted to CIAL, a wholly-owned subsidiary of CIL in Mozambique, in 2009. Various activities related to exploration of the allotted coal blocks undertaken in 2014- 15 are as follows:

- Surveying for delineation of the coal blocks, borehole collars have been completed.

- Completion of Exploration drilling programme in the allocated 2 coal blocks.

- 49,541 Mtrs of exploration drilling has so far been completed, of which 10088 Mtrs and 31,029 Mtrs of drilling in the 1st & 2nd stages was completed in 2013-14 and 8,423.67 Mtrs in 20 boreholes under 3rd stage was completed in 2014-15.

- Work under Geo-physical logging programme for 2,387.02 Mtrs in 4 boreholes has been completed.

- Core sample for a total of 98 boreholes have been tested in various laboratories in India. Analysis results have been received and are being examined.

- The existing exploration licenses for two coal blocks in Mozambique have been extended by Mozambican Government for another 5 years till August 2019.

- Interim Geological Report has been prepared by CMPDIL. The final Geological Report of these two allocated coal blocks in Mozambique is under preparation.

(B) Acquisition of coal assets abroad through global expression of interest

- Pursuant to adoption of the government policy on acquisition of raw material abroad by CPSEs by Board of Directors of CIL, a global Expression of Interest was floated on 27th February 2013 inviting offers from owners of coal assets abroad or their representatives and also from investment bankers for acquiring stakes in coal assets.

- Several proposals have been received till 31st March 2015 in response to the EOI.

- Some of the proposals had been short-listed for in- house due diligence. Technical review in respect of the short-listed proposals were presented to the senior management. CIL Board has desired a report on the regulatory framework in the targeted countries.

- CIL has appointed a legal consultant to advise CIL on the specific aspect of regulations and rules related to investment in the coal mining sector in the targeted countries.CIL has at present has initiated discussions in targeted countries on a possible G2G basis. CIL has been observing the falling international price (FOB) of thermal coal and studying its effect on the valuation model of the prospective coal assets.

(C) Setting up of Apex Planning Organisation (APO) & Apex Training Organisation(ATO)

Setting up of APO & ATO in Mozambique is a project of the Ministry of External Affairs(MEA),Government of India and to be funded by GoI. Coal India Limited was nominated as the nodal agency for the execution of the project.

Cost Estimate for the project updated in 2013 indicated an escalation of cost. Ministry of External Affairs, GoI has indicated that its financial commitment for setting up of APO & ATO in Mozambique would be limited to the initial estimate prepared in 2008. Further it has requested CIL to explore the avenue for funding of the balance amount.

CIL Board has considered the request of MEA and has decided that the issue of funding of the balance amount for the APO & ATO would be addressed once the final results of exploration work in the allocated coal blocks in Mozambique is completed. Meanwhile CIL has suggested that the funding for the balance amount for this project could be arranged from other Indian Public Sector companies having active commercial interest in Mozambique.

15. MASTER PLAN FOR DEALING WITH FIRE, SUBSIDENCE AND REHABILITATION

The Master Plan for dealing with fire, subsidence and rehabilitation in the lease hold of Bharat Coking Coal Limited (BCCL) and Eastern Coalfields Limited ( ECL) was approved on 12th August 2009 by the Govt. of India with an estimated investment of Rs. 7,112.11 crores for Jharia Coalfields and Rs. 2,661.73 crores for Raniganj Coalfields. Implementation period has been delineated as 10 years.

During the FY 2014-15, High Powered Central Committee meeting was held on 26/08/2014 under the chairmanship of the Secretary (Coal),MoC to review the activities of implementation of Master Plan.

Jharia Rehabilitation and Development Authority (JRDA) is the implementing agency for rehabilitation of non- BCCL people under the Master Plan whereas Asansol Durgapur Development Authority (ADDA) a state Govt. organization has been identified as implementing agency for Rehabilitation of Non-ECL houses.

A. Summarized Status of Implementations of Raniganj Master Plan

Demographic Survey work has been completed for all 126 sites. The final list has already been published which contains 44598 households. 43087 numbers of photo identity card (PIC) were distributed out of 44598 households.

Revalidation of land acquisition proposal at Bonjemehari for 1300 Acres of land in Salanpur block and at Gourangdih for 2300 Acres of land in Barabani block is under consideration of West Bengal State Govt.

ECL has given 'No Objection' for rehabilitation in the

available vested land at mouza Namokesia, (31.42 Acres) at Salanpur Block which is non-coal bearing area and mouza Bijoynagar (26 Acres ) at Jamuria Block where coal is available at more than 600 mtrs depth.

It has been informed by ADDA that the above two sites are made available for rehabilitation purpose by State Govt and barbed wire fencing has been started at the site Bijoynagar.

Further ECL has given NOC for vested land in Kulti,Barabani and Jamuria blocks where coal is of very low grade or coal is found at a depth of more than 600 metres. ECL has issued NOC for a total area of 236.42 acres of vested land for rehabilitation purpose to ADDA.

i) Diversion of Railway line from unstable location:

Andal-Sitarampur Railway line of Salanpur area- As regard to diversion of Andal-Sitarampur Railway line of Salanpur Area, the work has been awarded to M/S

RITES for preparation of Feasibility Study Report (FSR) and Detailed Project Report (DPR). Survey work of around 26 km track line has been completed and M/s RITES is finalizing the report in consultation with Railway authority.

ii) Diversion of NH-2 and District Board (DB) Road:

ECL has pointed out that even after repeated communication with National Highway Authority of India (NHAI) at different levels for diversion of National Highway (NH-2), response from NHAI is not very encouraging and the issue has been referred to Ministry of Coal for taking up the issue with Ministry of Surface Transportation.

Detailed Project Report diversion of DB road at Salanpur Area and Satgram area and land acquisition proposals are awaiting State Government's approval.

iii) Diversion of IOCL pipeline:

For diversion of Indian Oil Corporation Limited (IOCL) pipeline National Institute of Rock Mechanics (NIRM),

Bangalore has conducted the survey work to assess the stability of pipeline. NIRM submitted survey report and subsequently NIRM was requested to conduct 2nd tier geophysical survey to assess the stability of 750 metres most vulnerable length of pipeline. NIRM have completed the 2nd phase of survey and submitted their report. NIRM will submit their final report after joint meeting with IOCL.

B. Summarized Status of Implementations of Jharia Master Plan

Out of total of 595 nos. of fire affected / subsidence prone sites / areas required to be surveyed, CIMFR, ISM and Whiz Mantra have completed demographic / socio-economic survey at 569 sites in which 84497 families have been identified. Photo Identity Cards are distributed for 42652 families.

Status of land acquisition by JRDA for rehabilitation sites

About 1105 ha. land (say 2730 Acres) would be required for resettlement of non-BCCL families.

- Proposals for acquisition of 352.27 acres of Raiyati land have been sent to DLAO & 176.23 acres to the Addl. Collector Dhanbad by JRDA.

- Delivery for possession of Raiyati land for 120.82 acres at Lipania and 7.99 acres at Dhokra has been taken over by JRDA from DLAO, Dhanbad on 28.02.13. The physical possession of land is yet to be taken.

- Delivery for possession of Raiyati land for 5.12 acres at Duhatand-, 2.23 acres at Manaitand and 4.76 acres at Dhanbad has been taken over by JRDA from DLAO, Dhanbad on 15.04.13.

- NOC of 86.44 acres of vacant land in Bhuli Township and 849.68 acres of non-coal bearing land in and around Belgoria Township belonging to BCCL has been given by MoC which has been communicated to JRDA along with all the required mouza plans, for developing new Townships by JRDA.

Status of BCCL houses under Master Plan For this purpose, 344 houses & 1152 houses have been built in non-coal bearing zone & Families from fire & subsidence places have been shifted to these houses.

Construction of 4080 triple storied quarters (340 Blocks each of 12 units) is in progress. Construction of 4020 triple storied quarters (335 Blocks each of 12 units) is awarded. Tender for construction of 2248 units (B,C&D type) triple storied quarters and construction of 4008 units triple storied miners quarters with R.C.C. framed structure is in process . Status of Non-BCCL houses (54159 nos.) under Master Plan 2352 houses have been constructed in Belgoria rehabilitation Township ''JhariaVihar" in which 1169 families have shifted till 31.03.2015.

Status of Fire Schemes

Reduction in Fire Area:

- The coal mine fire survey/ study was instituted by BCCL through National Remote Sensing Centre (NRSC), ISRO, Deptt. of Space, Hyderabad in Aug., 2013 for delineation of surface coal fires in Jharia Coalfield. NRSC has submitted their report in April' 2014, in which they have concluded that the present fire area in the coalfield is only 2.18 sq.km. which included both over burden dump fire and active fire. NRSC has deduced these findings from the State of Art, Satellite based technology.

- Further NRSC has conducted delineation of land subsidence in Jharia Coalfield, Jharkhand as R & D component using space based differential interferometric technique. The final report is submitted in Sept'2014.From time series DInSAR observation and field verification, the land subsidence map of Jharia coalfield (JCF)were generated for 2007-2010 time period. 70 areas were detected which are prone to land subsidence/ subsidence affected from time series DInSAR observations due to mining activities, coal fire or by the combination of both. Thus the subsidence map includes areas which are under ongoing subsidence at present & subsided during observation. Out of 70 sites, 27 sites are affected with fire and thus fire induced subsidence.

Disbursement of total fund by CIL for implementation of Master Plan after approval of Master Plan

BCCL till March, 2015 : Rs. 511.85 crores

ECL till March, 2015 : Rs. 160.79 crores.

16. Environmental Management

16.1 Environmental Impact Assessment (EIA)/Environmental Management Plan (EMP)

38 environmental clearances for 107.36 Mty capacity were obtained from MoEF for different projects/Group of Mines of CIL during the year 2014-15.

16.2 Pollution Control Measures and their Efficacy

Measures are being taken to ensure that mining and coal beneficiation operations have a minimum impact on the surrounding air quality, water quality, noise level and soil quality, hydro-geology, land use pattern and nearby population.

Technical and biological reclamation of mined out areas and external overburden dumps are being taken by planting native species of plants for restoring the ecology.

The level of pollutants is being monitored regularly as per the statutory guidelines to ascertain the efficacy of pollution control measures and for taking corrective actions as required.

16.3 ISO 14001 Certification

The implementation, certification and re-certification of different units of CIL against ISO:14001 (Environmental

Management System) is continuing. As on 31.03.2015, 51 units and two companies (MCL & NCL) are certified under ISO:14001 standard.

With the success of a companywide Integrated Management System (IMS) in MCL & NCL, the implementation of IMS was started for ECL, CCL & BCCL. It is expected that by April, 2016 ECL, BCCL and CCL would be able to get certification for companywide IMS which includes ISO:14001.

16.4 Monitoring of land reclamation of OC mines through remote sensing Satellite surveillance system has been introduced for land reclamation monitoring of all the opencast coal mines for compliance of MoEF stipulations as well as for progressive mine closure monitoring. So far land reclamation monitoring based on high resolution satellite data, have been completed in respect of 50 opencast projects having more than 5 million cum. production capacity (Coal OB) and 36 opencast projects having less than 5 million cum. production capacity (Coal OB).

Vegetation cover mapping of seven coalfields viz. Rajmahal, Raniganj, Ib-Valley, Mand-Raigarh, Sohagpur, Pench- Kanhan and Umrer coalfields based on satellite data have been completed during the year 2014-15 for assessing the regional impact of coal mining on land use / vegetation cover in the span of 3 years for initiating required remedial measures, if any.

16.5 Resettlement & Rehabilitation Policy of CIL

With changing aspirations of Project Affected Persons (PAPs) and for faster acquisition of land, Resettlement & Rehabilitation Policy of CIL was revised in 2012 making it liberal and PAP friendly with more flexibility to the Board of Subsidiary Companies. .

The Policy provides for conducting baseline socio- economic survey to identify PAPs enlisted to receive R&R benefits as well as to formulate Rehabilitation Action Plan (RAP) in consultation with PAPs and State Govts.

The R&R Policy of Coal India Ltd provides for payment of land compensation and solatium, employment or lump sum monetary compensation and annuity, compensation for home-stead, lump sum payment in lieu of alternate house site, subsistence allowance to each displaced family etc.

16.6 Mine Closure Plans

In terms of the revised guidelines issued by Ministry of Coal (MoC) in 2013, CMPDI has prepared 7 mine closure plans for CIL mines during the year. Quick comments on 31 mine closure plans for coal blocks sent by MOC were also prepared and sent to MoC during the year.

17 COAL BED METHANE (CBM) / COAL MINE METHANE (CMM)

17.1 Collaborative development of CBM prospects in Jharia & Raniganj coalfields by the consortium of CIL & ONGC.

Two CBM blocks, namely Raniganj North CBM block in Raniganj Coalfield and Jharia CBM block in Jharia coalfield, were allotted in 2002 to the consortium of ONGC & CIL for commercial development of CBM. CMPDI is implementing the projects on behalf of CIL. ONGC is the Operator for both the CBM blocks and carrying out the jobs as per contractual agreement with the Govt. of India.

The FDP for both the CBM Blocks were approved by Govt. of India in July 2013. However till date, in the absence of Petroleum Mining Lease (PEL) and Environmental clearance, the actualization of FDPs could not take place.

17.2 CBM and Shale gas related studies under Promotional Exploration during XII Plan

17.2.1 CBM related studies:

CMPDI is carrying out studies related to "Assessment of Coalbed Methane Gas-in-Place Resource of Indian Coalfields/Lignite fields" through boreholes being drilled under promotional exploration (XII Plan period) and Promotional Regional Exploration (PRE) funding. For the plan period, studies have been completed for twenty four (24) boreholes.

During the year 2014-15, following three reports based on CBM related studies have also been submitted:

a) Dipside of Garjanbahal block, IB Valley Coalfield,

b) Bhalumuda block, Mand-Raigarh Coalfield.

c) Mandwa block, Bander Coalfield.

17.2.2 Shale gas related studies:

A study related to 'Assessment of Shale Gas-in-Place Resource of Indian Coalfields/Lignite fields' through boreholes being drilled under promotional exploration (XII Plan period) has been taken up under PRE funding of Ministry of Coal.

Shale gas study has been planned to be carried out in 25 boreholes during XII plan period. Out of these, so far, the study has been completed in respect of 15 boreholes including 5 bore holes taken up for study during 2014-15.

17.3 Commercial development of Coal Mine Methane (CMM)

Mechanism of operationalization of commercial development of CMM within CIL coal mining areas is under consideration at Government level. A formal communication in this regard is awaited. Further activities will be taken up for development and exploitation of CMM after formal communication.

18 COMMERCIAL DEVELOPMENT OF UNDERGROUND COAL GASIFICATION (UCG) WITHIN CIL COMMAND AREA

Mechanism on commercial development of UCG is under consideration at Government level. Global tendering for selection of "Developer for Commercial Development of Underground Coal Gasification (UCG)" in Kaitha Block of Central Coalfields Limited (CCL) and Thesgora "C" Block of Western Coalfields Limited (WCL) is under consideration.

19 R&D AND S&T PROJECTS

19.1 Projects on Coalbed Methane

19.1.1 S&T Project on "CBM Reserve Estimation for Indian coalfields" S&T project on "CBM Reserve Estimation for Indian coalfields" at a cost of Rs. 20.70 Crores has been approved under EoI of Coal S&T project. IIEST/BESU, Shibpur is the principal implementing agency and CMPDI, Ranchi; TCE, Kolkata & NGRI, Hyderabad are sub implementing agencies in this project. The project is of 3 years duration with effect from 24th March, 2014. Work is in progress as per the approved project in South Karanpura Coalfield.

19.1.2 CIL R&D project titled "Studies on shrinkage swelling characteristics of some Indian coals to ascertain recoverability of CBM from deepseated coal resources".

CIL R&D project titled "Studies on shrinkage swelling characteristics of some Indian coal to ascertain recoverability of CBM from deep seated coal resources" has been completed as per schedule. The project commenced on 1st March, 2013 and its completion report submitted on 27th Feb, 2015.

19.1.3 EU funded Research Project titled "Greenhouse Gas Recovery from Coal Mines and unmineable Coal beds and conservation of Energy (GHG2E)"

CMPDI is one of the participating organizations from India in the multi-national/multi-organization (12 partners from 5 countries) collaborative project titled "Greenhouse Gas Recovery from Coal Mines and un-mineable Coal beds and conservation of Energy" which has been approved under the partial funding scheme of European Union Research Commission for a period of 42 months.

Field desorption study in two horizontal in-seam boreholes at Moonidih mine has been completed. CMPDI has completed its job and the integrated report is under finalization at Imperial College of Mining, UK.

19.2 Projects on Shale Gas

19.2.1 CIL R&D Project titled "Assessment of prospect of shale gas in Gondwana basin with specific reference to CIL areas"

CIL R&D project titled "Assessment of prospects of shale gas in Gondwana basin with special reference to CIL areas" has been completed. Total Organic Carbon Analyzer and Rock Eval Analyzer are commissioned at CBM Lab, CMPDI, Ranchi. Sub-implementing agency ARI (USA) has made simulation and assessment of Shale gas potentiality in study areas of Jharia and East Bokaro Coalfields. The assessment report was presented in CIL R&D Apex Committee Meeting held on 24th December, 2014.

19.2.2 S&T Project titled "Shale gas potentiality evaluation of Damodar basin of India"

S&T project on "Shale gas potentiality of Damodar basin of India" with the project cost of Rs. 16.87 crore has been approved under S&T plan of Ministry of Coal (MoC). SSRC has approved the additional S&T Grant of Rs. 3.51 crore. The total approved project cost is now Rs. 20.38 crore. The project is under implementation with the objective to evaluate Damodar basin for their shale gas potentiality through integrated geophysical, geological, geo-chemical and petro-physical investigations.

20 GEOLOGICAL EXPLORATION & DRILLING

CMPDI has substantially improved the capacity of drilling during XI & XII plan period. 39 new Mechanical drills & 4 Hi-Tech Hydrostatic drills have been procured since 2008- 09, out of which 10 have been deployed as additional drills and 33 as replacement drills In addition to this, order for 8 Hi-Tech Hydrostatic drills have been placed in 2014-15, out of which, 3 drills have been received and deployed till March'15.

20.1 Drilling Performance in 2014-15

CMPDI deployed its departmental resources for detailed exploration of CIL/Non-CIL blocks whereas State Govts. of MP and Odisha also carried out exploration in CIL blocks only. Besides, eight other contractual agencies have also been engaged for detailed drilling/exploration in CIL/Non- CIL blocks. A total of 140 to 160 drills were deployed in 2014-15, out of which, 57 to 61 were departmental drills.

As against the achievement of 2.09 lakh metre in 2007-08, CMPDI has achieved 6.97 lakh meter in 2013-14 and about 8.29 lakh meter in 2014-15 through departmental resources and outsourcing.

Apart from it, CMPDI continued the technical supervision of Promotional Exploration work undertaken by MECL, and DGM (Nagaland) in Coal Sector on behalf of MoC. A total of 1.40 lakh meter of promotional drilling has been carried out in Coal (0.71 lakh metre) & Lignite (0.69 lakh meter) during 2014-15.

In 2014-15, CMPDI and its contractual agencies took up exploratory drilling in 93 blocks/mines of 22 coalfields situated in 6 States. Out of 93 blocks/mines, 30 were Non- CIL/Captive blocks and 63 CIL blocks/mines. Departmental drills of CMPDI took up exploratory drilling in 57 blocks/ mines whereas contractual agencies drilled in 36 blocks/ mines.

Due to non-availability of forest clearance, work is stopped in 11 blocks. Due to lack of forest clearance and adverse law & order, about 3.67 lakh metre of drilling could not be carried out in departmental and outsourced blocks in 2014- 15.

20.2 Geological Reports:

In 2014-15, 16 Geological Reports were prepared on the basis of detailed exploration conducted in previous years. In addition, 8 Revised Geological Reports were also prepared. The prepared Geological Reports have brought about 3.6 Billion Tonnes of additional coal resources under 'Proved' category.

Under Promotional Exploration Programme, GSI and MECL have submitted 13 Geological Reports on coal blocks estimating about 4.0 Billion Tonnes of coal resources, in 'Indicated' & Inferred categories, above the specified thickness.

20.3 Hydrogeology

Hydro-geological studies of a number of mining projects/ mines were taken up for preparation of 'Groundwater Clearance Application' for CGWA approval and EMP clearance. Hydro geological studies for 31 mining projects/ mines/cluster of mines in ECL, BCCL, CCL, WCL, SECL NCL and MCL were completed during 2014-15.

CMPDI is carrying out groundwater monitoring of MOEF cleared projects viz. 65 mines of WCL area and 15 Cluster of mines in BCCL area. Water level monitoring in other areas of ECL, CCL, SECL, NCL and MCL are also in progress.

20.4 Geophysical survey

Geophysical Logging: During the year 2014-15, a total of 2,34,614 depth meter of geophysical logging has been carried out in CIL and Non-CIL projects with multi parametric geophysical logging equipment.

Surface Geophysical Surveys: A total of 311 line Km of resistivity profiling, 121 nos. of Vertical Electrical Sounding (VES) and 6509 nos. of stations of magnetic surveys has been carried out in 2014-15.

A total of 21 geophysical reports have been submitted during the year 2014-15, including 10 reports on geophysical logging, 2 on resistivity survey, 2 on magnetic survey, 1 on HRSS survey and 6 on ground water study.

21 OUTSIDE-CIL CONSULTANCY SERVICES

During the year 2014-15, 29 consultancy jobs were done by CMPDI for 22 organizations outside CIL. Some of the major clients/organisations are Neyveli Lignite Corporation Limited, MOIL Limited, National Thermal Power Corporation, Steel Authority of India Limited, National Aluminium Company Limited, Damodar Valley Corporation, Chhattisgarh Mineral Development Corporation, Mahan Coal Limited, Karnataka Power Corporation Limited, etc.

Presently, 26 outside consultancy jobs are being executed by CMPDI for 16 organizations.

22 RESEARCH & DEVELOPMENT PROJECTS

22.1 R&D Projects under ST Grant of Ministry of Coal

The R&D activity in Coal sector is administered through an apex body namely, Standing Scientific Research Committee (SSRC) with Secretary (Coal) as its Chairman. The other members of this apex body include Chairman CIL, CMDs of CMPDI, SCCL and NLC, Directors of concerned CSIR laboratories, representatives of Department of S&T, Planning Commission and educational institutions, amongst others.

The SSRC is assisted by a Technical sub-committee headed by CMD, CMPDI. The committee deals with research proposals related to coal exploration, mining, mine safety, coal beneficiation & utilisation and also the project proposals on mine environment and reclamation.

22.2 Physical performance

During 2014-15, 3 projects have been completed by various agencies. The status of Coal S&T projects during 2014-15 is as under:

Following new S&T projects were approved during 2014-15:

1. Sustainable livelihood activities on reclaimed opencast coal mines: a technology enabled integrated approach in Indian coal sector- TERI / TERI University, New Delhi, MCL & CMPDI, Ranchi.

2. Assessment of mine water environment and development of suitable and cost effective mine void aqua eco-system for promoting fish culture in abandoned coal quarries of Coal India Limited- BAU, Ranchi & CMPDI, Ranchi.

3. Assessment of horizontal stress fields in deeper horizons and development of roof hazards maps of coal resources in SCCL command area - SCCL, Kothagudem and NIRM, Kolar.

Following Coal S&T projects were completed during 2014-15:

1. Development of Self Advancing (Mobile) Goaf Edge Supports (SAGES) for depillaring operations in underground coal mines.

2. Development of software for prediction of subsidence by 3D numerical modeling for SCCL mines.

3. Development of customized organic coatings for corrosion protection of special mining equipment at Neyveli Lignite mines.

22.3 Financial Status

Budget provision vis-a-vis actual fund disbursements during the period are given below:

22.4 CIL R&D Projects

For in-house R&D work of CIL, R&D Board headed by Chairman, CIL is also functioning.

So far, 73 projects have been taken up with the funds of CIL R&D Board, out of which 54 projects have been completed till March, 2015.

2. An integrated geo-physical approach for tectonic study in Moher main coal basin of Singrauli coalfield using 3D inverse modeling of Gravity, Magnetic and AMT data-ISM, Dhanbad and CMPDI(Hq), Ranchi.

Following R&D projects were completed during 2014-15:

1. Assessment of prospect of shale gas in Gondwana basin with special reference to CIL areas.

2. Studies on determination of free silica (a-Quartz) content in respirable air borne dust in coal mines and preparation of data bank of free silica and other minerals present in dust as well as in coal.

3. Indigenous development of Integrated Dumper Collision Avoidance system for opencast mines.

4. Studies on shrinkage swelling characteristics of some Indian coals to ascertain recoverability of CBM from deep seated coal and shale resources

5. Research and development on efficient energy management pilot study and action plan.

23. TELECOMMUNICATION SYSTEM

CIL and its subsidiaries are making continuous efforts to up- date communication and IT solutions. To increase transparency and optimal utilization of resources for customer and investor satisfaction, the following key initiatives have been undertaken:

1. GPS based Operator Independent Truck Dispatch System (OITDS) with high speed Data and Voice communication is implemented in all eleven Opencast projects to optimize operation of HEMM to enhance production and productivity of the mine.

2. An ambitious plan to commission GPS/GPRS based Vehicle Tracking System across all major mines of Coal India has been taken up and the same is at different stages of completion at different subsidiaries.

3. E-auction of coal, e-procurement of goods and services are operational through service provider of CIL. e-payment to employees and vendors, e-filing of grievances is in operation to embark upon the business process through IT initiatives.

4. In order to improve coal dispatch, actions have been taken to connect all weighbridges with Central Server of respective subsidiaries.

5. Corporate Mail Messaging System is in place and enhancement of Mail Messaging System for CIL and its subsidiaries for ultimate capacity of 19400 users is under process to provide corporate mail for executives of CIL and subsidiaries.

6. In order to meet the demanding business process, state- of the art IP based EPABX with support of convergent technology for voice and data, Radio communication System and UG communication system at different locations of Coal India and its subsidiary companies are operational.

7. For enhancing the efficiency of official works, mobile telephone connections under CUG scheme to all executives is in place at CIL HQ and all its subsidiaries, except at WCL, where it will be implemented shortly. High speed Data cards and Broadband connections are provided for internet connectivity.

8. The Web Portal of Coal India has been established in English and Hindi with enhanced look and feel encompassing the features like Employee Portal, Tender publication, On-line grievance management, Investor center, Customer corner, Vigilance etc. The portal also facilitates for receiving on-line applications for recruitment of MTs, link to E-procurement and E-auction.

9. Multi Protocol Layered Switching (MPLS) based Video Conferencing between CIL, Subsidiaries, CIL office, Scope Complex and MoC for enhancement of decision making process for better production and productivity has been successfully implemented.

10. At New building of corporate office of Coal India Limited all modern communication facilities have been provided for smooth & efficient functioning.

11. Performance evaluation of all executives is done through web enabled system.

12. Annual Property Return of all executives is recorded through web enabled system.

13. The subsidiaries have Coal Net and other Information systems in place for accounting, finance, payroll, material management and other business functions.

14. Electronic Surveillance through CCTV at Weighbridges has been taken up and is under the process of completion at different subsidiaries.

24. MINES SAFETY

24.1 : Safety Policy of CIL: Safety is always given a prime importance in the operations of CIL as embodied in its mission statement. CIL has formulated a well-defined safety policy for ensuring safety in mines, and implementation of the same is closely monitored at several levels.

1) Operations and systems will be planned and designed to eliminate or materially reduce mining hazards;

2) Implement Statutory Rules and Regulations and strenuous efforts made for achieving superior standards of safety;

3) To bring about improvement in working conditions by suitable changes in technology;

4) Provide material and monetary resources needed for the smooth and efficient execution of safety plans;

5) Deploy safety personnel for accident prevention work;

6) Organize appropriate forums with employees' representatives for joint consultations on safety matters and secure their motivation and commitment in safety management;

7) Prepare annual Safety Plan and long term Safety Plan at the beginning of every calendar year, unit-wise and for the company, for improved safety in operations as per the prevailing geo-mining conditions to prepare the units for onset of monsoon, to fulfill implementation of decisions taken by Committee on Safety in Mines and Safety Conferences and to take measures for overcoming accident proneness as may be reflected through study of accident analysis, keeping priority in sensitive areas of roof-falls, haulage, explosives, machinery etc.

8) Set up a frame work for execution of Safety Policy and Plans through General Managers of Areas, Agents, Managers and other safety personnel of the units;

9) Multi-level monitoring of the implementation of the Safety Plans through Internal Safety Organization at the Company Headquarters and Area Safety Officers at area level;

10) All senior executives at all levels of management will continue to inculcate a safety consciousness and develop involvement in practicing safety towards accident prevention in their functioning;

11) Institute continuous education, training and retraining of all employees with the emphasis laid on development of safety oriented skills;

12) Continue efforts to better living conditions and help all employees both inside and outside the mines.

To implement CIL Safety Policy, the following are provided:

1. Provision of adequate funds.

2. Deployment of adequate manpower exclusively engaged for safety jobs.

3. Support of scientific planning and R&D activities made available through in-house expertise of CMPDIL and in collaboration with other scientific agencies and reputed educational institutes.

4. A well-structured and multi-disciplinary Internal Safety Organization (ISO) established in all the subsidiaries of CIL to monitor implementation of CIL's Safety Policy.

24.2 : Accident Statistics

Accidents statistics is the indicator of safety status. Over the years, safety performance in terms of accidents has improved significantly.

This improvement in safety is attributed to the following factors:

- Collective commitment and synergies shown by the management and employees.

- Use of state-of-the-art technology in the field of mining methods, machineries and safety monitoring mechanism.

- Continuous improvement in knowledge and skill of our workforce through imparting quality training and relentless safety awareness drives.

- Constant supervision and assistance from various quarters.

Salient features of continuous and sustained improvement in CIL's safety performance

1. The 5 yearly average fatalities since the inception of the Company in the year 1975 have shown a consistent reducing trend over a period of time, as is evident from the graph given below

3. The 5 yearly average serious injuries since the inception of the Company upto 2014 has also shown a consistent reducing trend over a period of time as is evident from the graph below:

Note: Accident Statistics are maintained calendar year wise in conformity with DGMS and figures for 2014 are subject to reconciliation with DGMS

4. The 5 yearly average serious injuries has reduced more sharply than fatalities in the same time frame. As serious injuries are the precursor of fatal accidents and mine disaster, it is the indicator of improvement in safety standards in our mines as whole.

Details of Accident Statistics in 2014 vis-a-vis 2013

During 2014, there were 44 fatal accidents and 46 fatalities compared to 55 and 59 respectively, in 2013. Thus, the numbers of fatal accidents and fatalities in 2014, compared to 2013 have reduced by 20% & 22% respectively, which are the lowest since the Company's inception in 1975. The serious accidents and serious injuries in 2014 compared to 2013 have reduced to 183 & 186 from 196 & 200 respectively, which are the lowest since the Company's inception in 1975.

24.3 : Major Activities for Safety & Rescue Division of CIL

1. Inspection of mines to review safety status & follow up action thereof.

2. Prima-facie fact finding enquiry into fatal accidents and major incidences such as mine fire, subsidence, in-rush of water, slope failure, explosion etc.

3. Organizing meeting of CIL Safety Board and monitoring recommendations / suggestions made during the meeting.

4. Organizing meeting of National Dust Prevention Committee (NDPC) and monitoring recommendations / suggestions of NDPC.

5. Framing internal technical circulars / guidelines related to safety issues and monitoring implementation thereof.

6. Maintenance of accidents / major incidents statistics database.

7. Publication of Safety Bulletin for disseminating and sharing knowledge in order to promote safety awareness and inculcate better safety culture.

8. Framing reply to different coal mine safety related parliamentary questions including queries raised by different standing committees such as standing committee on steel & coal, standing committee on labour as well as questions raised by COPU, MOC, CA&G and VIPs.

9. Monitoring safety related R&D activities in CIL.

10. Imparting specialized training by SIMTARS accredited trainers to unit level and Area level executives who are directly engaged in ensuring safety in mine.

24.4 Actions taken for improvement in Safety in Mines undertaken in 2014

Safety Awareness Programme:

- Special safety drives were conducted periodically to assess the level of compliance of safety norms in each mine.

- Annual safety fortnight / week is also conducted every year.

- Constant safety awareness programme is conducted in every mine for increasing safety awareness amongst the grass root level workmen for ensuring compliance of safety norms. This is done with the help of :

a) Safety talks & oaths at the beginning of the shift.

b) Safety slogans and signages at conspicuous places.

c) Circulation of safe operating procedures for every operation and activity to all concerned.

d) Animation films on safety issues.

25. Mines Rescue Services: A well-equipped Rescue Service Organization staffed by rescue personnel trained in modern training galleries and equipped with modern rescue equipment is maintained by the subsidiary companies of CIL. At present there are 6 Rescue Stations, 14 Rescue Rooms-with-Refresher Training facilities and 17 Rescue Rooms in CIL.

26. Safety Monitoring Agencies in CIL: The implementation and monitoring of safety norms stipulated as per statute are being done on constant basis both by the line management as well as by ISO officials.

Apart from the above, there are several other agencies for monitoring safety, these are as under:

At Mine Level

- Workman inspectors: as per Mines Rule-1955

- Safety Committee: constituted as per Mines Rule-1955

At Area Level

- Bipartite/Tripartite Safety Committee Meeting

- Safety Officers' Coordination Meeting

- Bipartite/Tripartite safety Committee Meeting

At Subsidiary HQ Level

- Area Safety Officers' Coordination Meeting

- Inspections by ISO Officials

- CIL Safety Board

At CIL (HQ) / Corporate Level

- CMD's meet

- Director(Tech)'s Coordination Meeting

- National Dust Prevention Committee Meeting

- Standing Committee on Safety in Coal Mines.

At Ministerial / National Level

- National Conference on Safety in mines.

- Various Parliamentary Standing committees.

27. HUMAN RESOURCE DEVELOPMENT

Coal India Ltd has made optimum utilization of resources and technology for enhancement of efficiency and productivity in the Company. CIL has been developing new techniques and opportunities for employee's self-development which in turn proved to be favouring the Company as a whole.

27.1 Overall Performance

Company has achieved MoU targets for HRD for the current year. 71256 employees were given training during 2014-15, out of which 18580 were executives and 52676 non-executives. These trainings included in- house training (training at subsidiary training centres and also at IICM), training in other reputed institutes outside the Company and training abroad.

27.2 Trainings

i) In-house Training

In-house trainings were organized at subsidiary HQs, 27 training centres and also 102 VT centres across Coal India and also at IICM. Respective HRD division of subsidiaries had organized these trainings after assessing the training need in the respective category of employees within the subsidiary. Special attention was given for improving the skill of the employees keeping in mind the need of the industry. Details of in-house trainings imparted were as under:-

ii) Training Outside Company (Within the Country)

Besides in-house training at our training institutes, VT centres and IICM, employees were trained within the country at reputed training institutes, in their respective field of operations and also for supplementing in-house training efforts. Employees from eight subsidiary companies and from CIL (HQ) have been trained in those reputed institutes. The break-up is given below:-

iii) Initiatives

- CIL has been recruiting fresh and dynamic young bloods in different disciplines for the last few years consistently. A special attention has been given to groom these young and energetic persons in their respective fields throughout the year. In addition to the introductory concept on Coal Industry, they have been trained on basic Management Techniques (MAP) and also in their respective Technical Fields (TAP) through regular courses organized at IICM with the reputed faculties. Special attention has also been given in tuning them in their respective specialized working areas by on-the-job training, throughout the year.

- As ManagementTraineesof Excavation and E&M disciplines are posted in coal mines, to provide them proper exposure to mining operations as well as mining equipments (both surface and underground) and to make them conversant with the mining activities, 5 weeks intensive training in different batches for a total of 196 Management Trainees was organized at Indian School of Mines, Dhanbad, the premier mining institute of our country during the year 2014-15.

- 90 General Managers (E8) of different disciplines were given training through IIM, Calcutta on Advance Management for three weeks including overseas learning in Frankfurt School of Finance and Management, Stockholm School of Economics, St. Gallen, Switzerland and Essec Paris, France.

- 160 middle level executives (E6 & E7) were given training on General Management for two weeks, by making a tie up with Administrative College of India (ASCI), Hyderabad.

- 162 executives (E4 & E5) were given training on Executive Development Programme for two weeks, by making a tie up with Indian Institute of Management, Lucknow.

- 336 executives have been given certified training in Project Management at IICM and other renowned institutes.

- 186 executives have been given certified training in Contract Management at IICM and other reputed Institutes.

iv) Training Abroad

CIL has sent 118 employees (117 executives & 1 non-executive) to different countries from all the subsidiary companies and CIL (HQ) for training during the year 2014-15.

27.3 Recruitment

Coal India Limited had inducted fresh talent into the organization at entry level as Management Trainees. 414 Management Trainees have been recruited and inducted in various disciplines including the newly created Community Development discipline through open advertisement. Through campus recruitment 264 Management Trainees have been recruited and joined the Company. CIL has also recruited of 192 Senior Medical Officer.

CIL has started the campus recruitment of Management Trainees in technical disciplines for 485 vacancies and selected 119 candidates till the end of March 2015; selection process is under way to fill up all the vacancies. The candidates selected from campuses would join the Company in July-August, 2015, on completion of their course.

CIL has also concluded selection procedure for recruitment of three principals of nursing schools. CIL has also inducted 9 non-executives into Executive cadre through selection/promotion. In this financial year, 669 Management Trainees joined the Company were given induction training program at IICM and posted in subsidiary companies.

29. 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 Standardization Committee were held at regular intervals at CIL.

To provide medical facility to a large number of ex- employees, who had separated from service after rendering prime time of their life to the Company, Contributory Post Retirement Medicare Scheme for non-executives was approved by the company's board.

2. Housing

At the time of Nationalisation, there were only 1,18,366 houses including sub-standard houses. The availability of these houses has increased to 4,01,101 (up to 31.03.2015). The percentage of housing satisfaction has now reached 100%.

3. Water Supply

As against 2.27 Lakhs population having access to potable water at the time of Nationalisation in 1973, currently, a populace of 19.57 Lakh (up to 31.03.2015) has been covered under water supply scheme.

4. Medical Facilities

Coal India Ltd and its subsidiaries are extending medical facilities to its employees and their families through various medical establishments from the dispensary level to the central and Apex Hospitals in different parts of the coalfields.

There are 80 Hospitals with 5,749 Beds, 405 dispensaries, 592 ambulance and 1,286 doctors including specialists in CIL and its subsidiaries to provide medical services to its employees. Besides 08 Ayurvedic dispensaries are also being run in the Subsidiaries of Coal India Limited to provide indigenous system of treatment to workers.

In addition, subsidiary companies have also been organizing different medical camps for the benefit of the villagers/community. Special emphasis has also been given on occupational health, HIV/AIDS awareness programme for the employees and their families.

Medical facilities are also provided to the people residing in and around mines premises of the subsidiary companies of CIL.

5. Educational Facilities

The primary responsibility of providing educational facilities lies with the State Governments. However, the subsidiary companies of CIL have been providing financial assistance and infrastructure facilities to certain renowned schools like DAV Public Schools, Kendriya Vidyalaya and Delhi Public School etc to impart quality education.

Coal India Scholarship Scheme (Revised - 2013)

To encourage sons and daughters of employees of Coal India Limited, two types of scholarship namely Merit and General Scholarship, are being provided every year under prescribed terms and conditions.

Scholarship:

The number of students, who have been getting scholarship and number of students from IIT, NIT and Govt. Engineering & Medical Collages whose tuition fee and hostel charges are reimbursed for 2014-15 were as under:.

6. Statutory Welfare Measures

In accordance with the provision of the Mines Act 1952 and rules and regulations framed there-under, subsidiaries of Coal India Limited are maintaining various statutory welfare facilities for the coal miners such as Canteen, Rest Shelters and Pit Head Baths etc.

7. Non-statutory Welfare Measures

Co-operative Stores and Credit Societies:-

In order to supply essential commodities and Consumer goods at a cheaper rate in the Collieries, 22 Central co-operatives and 93 Primary co-operative Stores are functioning in the Coalfield areas of CIL. In addition, 158 Co- operative Credit Societies are also functioning in the Coal Companies.

8. Banking Facilities

The Management of Coal Companies are providing infrastructure facilities to the various Nationalised Banks for opening their Branches and Extension Counters in the Coalfields for the benefit of their workers. Workers are educated to draw their salaries through 481 Number of Bank/ Extension Counters and they are also encouraged to practice thrift for the benefit of their families.

9. Sports

Structured sports policy of CIL and its subsidiaries was approved by CIL Board in its 296th meeting held on 25th March, 2013. As per sports policy, Coal India Sports Promotion Association (CISPA) has been registered under West Bengal Societies Registration Act, 1961 on 15th July, 2013. CISPA has undertaken several sports activities at national level according to the objectives of the policy.

10. Welfare, Development and Empowerment of Women

There is a Forum for Women in Public Sector (WIPS) Cell at the Company Headquarters in Kolkata and five subsidiary companies viz. ECL, BCCL, CCL, SECL & CMPDI. Each WIPS Cell is headed by a coordinator who plans and executes the various activities of the forum with the help of a duly appointed Executive Committee. The Company extends active support to various activities of WIPS comprising of welfare activities, training & development activities, seminars, cultural programmes, industrial awareness visits and health awareness programme etc for the WIPS members, women workers, their families and society at large.

Coal India Ltd and its subsidiary companies are extending full-fledged support and patronage to National Conference Forum of WIPS held every year in February at predetermined locations by sponsorship of the event, nomination of maximum number of delegates and also by competing for the BEST ENERPRISE award. In recent years, WIPS cell has done a commendable job in reaching out to the grass-root level women employees, empowering them by suggesting gainful redeployment, training and uplifting their morale by recognizing outstanding achievement, recognizing and honouring the exceptional talent.

11. Special Cash Award

During 2014-15, an amount of Rs. 91,000/- has been provided as Special Cash Award to 15 meritorious children of employees of CIL (Hqrs.), Kolkata Desk Offices of subsidiary companies @ Rs. 7,000/- for 8 (Eight) students who have secured 90% or above marks in the Class-XII Board level examination and @ Rs. 5,000/- for 7(Seven) students who have secured 90% or above marks in the Class-X Board level examination.

12. Recreational facilities

At present there are seven holiday homes in following places.

(a) Puri

(b) Digha

(c) Goa

(d) Manali

(e) Katra

(f) Ajmer

(g) Nainital

(h) Haridwar

Efforts are on to include more holiday homes in the other important tourist spots of the country.

13. CIL Welfare Board Meeting

Coal India Welfare Board is the decision-making forum regarding welfare policies for betterment and improvement of living conditions of employees of the Company.

The members of CIL Welfare Board comprising of Central Trade Union representative and representation of managements meet regularly to discuss on the welfare measures and review the implementation of different welfare schemes. The meeting of the Welfare Board is held regularly.

31. TREE PLANTATION / AFFORESTATION

Coal India Limited envisioned that tree plantation plays an important role in its economic development and environmental balance. Accordingly every year Coal India Limited and its subsidiaries are planting saplings on the available land in its command areas. During 2014-15 Coal India Limited and its subsidiaries have planted 15.74 Lakhs tree saplings over 627.79 Ha. under the plantation / afforestation programme.

Since inception, CIL and its subsidiaries had planted more than 82 million plant saplings over an area of 34944 Ha. upto 31st March, 2015.

32. PROGRESSIVE USE OF HINDI

Keeping with the spirit of the Constitution of India, Coal India Limited continued its efforts to propagate and spread the progressive use of Official Language, Hindi, during the period under review. The management of Coal India Limited is committed to implement the provisions of Official Languages Act, Rules and Regulations. For this purpose periodical meetings and reviews are done regularly by the top officials.

Hindi workshops were organized regularly with a view to create a working atmosphere in Hindi and to remove hesitation of officers & employees to work in Hindi. During the year, large number of employees participated in such workshops.

With a view to create conducive atmosphere for working in Hindi and accelerating the use of Hindi as official language among officials, 'Hindi Fortnight' was observed in all offices of Coal India Ltd. starting from 14 September'2014. During the Hindi Fortnight, various Hindi competitions such as Hindi noting and drafting, Hindi essay writing, Hindi dictation, Hindi translation & Hindi typing were organized where a large numbers of employees participated enthusiastically. The winners were honoured with cash awards & certificates. This creates a consciousness among employees to use Rajbhasha in official Work. Regional Sales Offices situated at different cities were granted sufficient fund as per their size to celebrate Hindi Diwas & Hindi week/fortnight. In order to promote Hindi, a Hasya Kavi Sammelan was organized on 26-12-2014 at Rohini Housing Complex, Ultadanga, Kolkata where a large number of members were present.

With a view to promote Hindi knowledge of employees, 10 sets of 9 selected Hindi magazines are being distributed among different departments/ sections. It has been planned to publish a Hindi house journal from Coal India Ltd.(HQ) during 2015. Help literature and dictionaries were provided to the departments on demand.

Coal India always lays emphasis on imparting training of Hindi Language and Hindi typing & stenography under Hindi teaching scheme of Govt. of India by nominating the employees in Hindi Praveen & Pragya classes. During the last session, CIL has nominated 2 persons in Praveen classes and two persons in Hindi typing & stenography classes.

Various organizations of Govt. of India recognize the best performers by awarding prizes. During the year, Coal India Ltd. received the following Prizes:-

CIL bagged Indira Gandhi Rajbhasha shield: Under the Rajbhasha Award Scheme of the Govt. of India, honourable President of India Shri Pranab Mukherjee awarded Indira Gandhi Rajbhasha Shield to CIL-2nd prize for the best implementation of Official Language Policy of the Union among PSUs situated in region "C" at Rashtrapati Bhawan on the occasion of Hindi Diwas.

CIL bagged 1st Prize of TOLIC(PSUs), Kolkata: Under the Rajbhasha Award Scheme of the Govt. of India, honorable Governor of West Bengal Shri Kesharinath Tripathi awarded TOLIC (PSUs) Kolkata shield - 1st Prize to Coal India Ltd. in the corporate offices category for the best implementation of Official Language Policy of the Union on 8.9.2014.

On 25th July, 2014 under the award scheme of Kendriya Sachivalya Hindi Parishad, Coal India Ltd. was given 'Utkristh Sheild' honour in the sammelan hall of Bhartiya Bhasha Parishad, Kolkata.

CIL was awarded with 'International Academic Rajbhasha Shield' in All India Official Language Conference at Goa organized by Rashtriya Hindi Academy, Rupambra on 27-10-2014.

Inspection of offices is a part of the implementation. Officials of Rajbhasha department, CIL (HQ.) reviewed the status of implementation of Official Language in some of its subordinate offices during the year under review. Suggestions have been given to correct the short-comings seen during the inspection. Some Participants were also nominated in Hindi Workshop/Training camps organized by certain prestigious institutions to promote Hindi.

33. VIGILANCE SET UP

The anti-corruption activities in CIL and its subsidiary companies have been institutionalized by setting up of Vigilance Departments in CIL and its subsidiary companies each of which is headed by a Chief Vigilance Officer (CVO), appointed by the Govt. of India in consultation with Central Vigilance Commission (CVC) on tenure basis, drawn from various government services.

During the year 2014-15, 39 Intensive Examination of Works/

Contracts were undertaken by CIL (HQ) and its subsidiary companies. In addition, 272 Surprise checks were carried out and 176 investigation cases were completed. Besides, 59 departmental inquiries were disposed of which resulted in punitive action against 278 officials. Such examinations/investigations have resulted in initiation of various system improvement measures.

As per the directives of Central Vigilance Commission, Vigilance Awareness Week - 2014 was observed in Coal India Limited, IICM- Ranchi, North Eastern Coalfields-Margherita & Regional Sales Offices across the country from 27.10.2014 to 01.11.2014 emphasizing the theme of "Combating Corruption - Technology as an enabler". As a part of the function, following major activities were organised:

(i) The pledge was taken during the Board Meeting as well as by different Departments.

(ii) Publicity was done through Banners, Posters, Vigilance Related slogans, Message through SMS mass messaging system etc.

(iii) Speech Competition, Quiz Competition, Essay writing competition, feedback from employees, suggestions for System improvement taken.

(iv) A one day orientation programme for Junior Level Managers was organized in two batches.

(v) All Departments under CIL organised a Group discussion on 'IT implementation in organizational activities for transparent and effective corporate governance" with the officials.

(vi) Stake Holders meet was organized and their suggestion for measures to promote good governance and enhance the level of transparency in commercial activities of the 3 organisation were taken. Feedback related to transparency, fairness and customer satisfaction were obtained.

(vii) Open Interactive Session with special emphasis on theme "Combating Corruption - Technology as an enabler", was held on 05.11.2014.

(viii) Vigilance Corner page on CIL website has been introduced having facility for online filing of Vigilance Complaints including PIDPI complaint, online filing and viewing of Annual Property Return etc.

Preventive Vigilance/ System Improvement

1. Improvements in Online Grievance Management System: Several improvements were made in the system creating facilities for filing of complaints on matters relating to subsidiaries, uploading of documents with online complaint, filing of PIDPI complaint where the identity of the complainant is masked etc.

2. Online Bill Tracking System Implementation Action was taken to implement bill tracking system of CMPDIL, designed with customization on coal net, at CIL. The following additional features were suggested for incorporation in the existing module of CMPDIL:-

a. The bill submitted by vendor with bill number to concerned bill processing division may generate a unique code no of CIL mapped with vendor bill no and work order /NIT no and immediately an acknowledgement is generated as a token of receipt and for online tracking of bill by vendor.

b. The bill may appear in the Finance section only after processing of bill from the concerned section.

c. If the bill is rejected and returned back to vendor, the reason for rejecting the bill may be incorporated with date of returning the bill. The same should be mapped with the new bill when submitted afresh next time. No new code should be assigned if the same bill was submitted earlier with same work order no.

d. A report may be generated every week indicating the number of pending bill with the concerned department and delivered to concerned HOD for information through mail/sms.

e. The bill status may be informed to vendor through mail/sms.

f. Customized reports may be generated as details of pending bills with the concerned department, details of rejection and return back department-wise and details of payment released department-wise.

System improvement suggestions:

System improvement suggestions were made in many areas:

a. Implementation of E-procurement

b. DPC for promotion

c. Procurement of explosives

d. Manual for outsourcing of Coal and OB:

e. Purchase Manual

System Improvement Studies - Studies were taken in the following areas

Sl. Subject of Study No.

1 Land Acquisition and R&R issues in Rajmahal

2 Quality issue in Rajmahal mine

3 Measurement of OB and Coal in outsourced patches

4 Recording of performance of tyres through maintenance Logbook as per international practices.

5 CSR Policy of CIL and monitoring of projects.

6 Storage, Accounting and Monitoring of Diesel Usage in NEC

7 Monitoring of coal usage by erstwhile non-core sector units

8 Losses due to excessive production of coal in mines having dispatch constraints.

9 Action on CBI Reports

10 Implementation of Bill passing system at CIL

11 Fixation of normative coal consumption for various non-core sectors as per new coal gradation policy based on GCV system.

12 Amendments in Manuals

13 Quality of Coal- Issues and monitoring

34. PARTICULARS OF EMPLOYEES

No employee received remuneration during 2014-15, either equal to or in excess of the limits prescribed under Rule 5(2) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. Details of Rule 5(1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 on disclosure in the Board Report with reference to remuneration of managerial personnel is annexed to the Report. (Annexure XII).

35. BOARD OF DIRECTORS

Shri S. Narsing Rao continued as Chairman cum Managing Director of the company till 25.06.2014. Dr A. K Dubey, Additional Secretary, MoC took additional charge of CMD from 26.06.2014 and continued till 04.01.2015. Shri S. Bhattacharya has assumed the Charge of Chairman cum Managing Director w.e.f 05.01.2015. Shri R. Mohan Das, Director (P&IR), Shri N. Kumar Director (Technical) and Shri B.K.Saxena, Director (Marketing) were on the Board throughout the year. Shri C.K.Dey has assumed the charge of Director (Finance) from 01.03.2015 on superannuation of Shri A. Chatterjee from 28.02.2015.

Dr A K Dubey, Additional Secretary, MoC and Smt Sujata Prasad, Joint Secretary & Financial Advisor, MoC continued as part-time official Directors on the Board throughout the year.

Shri Sri Prakash, Shri Alok Perti and Shri C. Balakrishnan, Independent Directors, resigned from the Board on 02.09.2014, 08.09.2014 & 09.09.2014 respectively. Appointment of Dr R. N.Trivedi, Dr Noor Mohammad and Prof Indranil Manna, Independent Directors as directors of the company for the balance period of their tenure was placed in the AGM of the company. However shareholders of the company did not approve their appointment and hence they ceased to be directors of the company w.e.f 10.09.2014.

Shri A. N. Sahay, CMD, MCL and Shri A.K.Debnath, CMD, CMPDIL, permanent invitees on CIL Board continued throughout the year. Shri A.K.Maitra has been appointed as permanent invitee on the board with effect from 10.06.2014 and continued till 31.12.2014.

Your Directors wish to place on record their deep sense of appreciation for the valuable guidance and services rendered by the directors during their tenure, who ceased to be the Directors during the year.

In terms of Article 39(j) of the Articles of Association of the Company, one third of retiring Directors are liable to retire by rotation shall retire at the ensuing Annual General Meeting and being eligible they offer themselves for reappointment.

The Board of Directors held 7 meetings during the year 2014-15.

36. COMPOSITION OF AUDIT COMMITTEE

Details are disclosed in the Corporate Governance Report under point number 3.1.

37. COMPOSITION OF CSR COMMITTEE

Details are disclosed in the Corporate Governance Report under point number 3.6.

38. DECLARATION GIVEN BY INDEPENDENT DIRECTORS UNDER SUB-SECTION (6) OF SECTION 149.

The following Independent Directors have given their consent during 2014-15 that they meet the criteria of independence as provided in sub-section (6) of Section 149 of the Companies Act 2013.

i. Dr. R.N. Trivedi.

ii. Shri Alok Perti.

iii. Shri C.Balakrishnan.

iv. Dr Noor Mohammad.

v. Prof Indranil Manna.

vi. Shri Sri Prakash.

39. REAPPOINTMENT OF INDEPENDENT DIRECTORS

No Director was reappointed in terms of section 149(10) of the Companies Act 2013.

40. RECOMMENDATION OF AUDIT COMMITTEE AND ACCEPTANCE BY THE BOARD

All the recommendations made by Audit Committee were accepted by the Board.

41. COMPANY'S POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION INCLUDING CRITERIA FOR DETERMINING QUALIFICATIONS, POSITIVE ATTRIBUTES, INDEPENDENCE OF A DIRECTOR AND OTHER MATTERS PROVIDED UNDER SUB-SECTION (3) OF SECTION 178.

MCA vide notification no. G.S.R. 463(E) dated 5th June'2015 has exempted the above for Government companies.

42. REMUNERATION POLICY OF DIRECTORS, KMPS AND SENIOR MANAGEMENT - SECTION 178(4).

MCA vide notification no. G.S.R. 463(E) dated 5th June'2015 has exempted the above for directors of Government companies.

43. A STATEMENT INDICATING THE MANNER IN WHICH FORMAL ANNUAL EVALUATION HAS BEEN MADE BY THE BOARD OF ITS OWN PERFORMANCE AND THAT OF ITS COMMITTEES AND INDIVIDUAL DIRECTORS.

MCA vide notification no. G.S.R. 463(E) dated 5th June'2015 has exempted the above for Government companies.

44. CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

Related party transactions were made with its subsidiary companies and that all such transactions were exempted under clause 49(VII)(D) and (E) of Listing Agreement being transactions between two government companies and transactions entered between a holding and its wholly owned subsidiaries whose accounts are consolidated with holding company and placed before the shareholders at the General meetings for approval.

45. LOAN, GUARANTEES OR INVESTMENTS BY A COMPANY UNDER SECTION 186 OF THE COMPANIES ACT 2013

Loan, guarantees and investments made by Coal India Limited in terms of section 186 of Companies Act 2013 is enclosed as Annexure XIII.

46. FAMILIARIZATION PROGRAMME OF BOARD MEMBERS

Board members are fully briefed on all business related matters, associated risks and new initiatives etc. of the Company. Company has prepared a draft policy on familiarization programme of Directors. In the absence of independent Directors the policy has not been placed to the Board.

47. SEXUAL HARASSMENT OF WOMEN AT THE WORKPLACE

The Company has in place an Anti-Sexual Harassment Policy in line with the requirements of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints Committee (ICC) has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy.

No sexual harassment complaint was received during the year under review.

48. DIRECTORS' RESPONSIBILITY STATEMENT

In terms of Section 134(3)(c) of the Companies Act, 2013, read with the Significant Accounting Policies at Note 33 and Additional Notes on Accounts at Note 34 forming part of :

1. CIL (Standalone) Accounts

2. CIL (Consolidated) Accounts,

Based on such confirmation obtained from eight Indian subsidiaries of CIL, viz: Eastern Coalfields Limited, Bharat Coking Coal Limited, Central Coalfields Limited, Northern Coalfields Limited, Western Coalfields Limited, Mahanadi Coalfields Limited (Consolidated), South Eastern Coalfields Limited (Consolidated), Central Mine Planning & Design Institute Limited. However, for the overseas subsidiary viz: Coal India Africana Limitada, which is incorporated under the laws of a different sovereign i.e. Republic of Mozambique and for Joint Ventures viz: International Coal Ventures Private Limited and NTPC Urja Private Limited where CIL is not the majority shareholder, such confirmation have not been obtained.

It is confirmed that:

a) In preparation of the Annual Accounts, the applicable Accounting Standards have been followed and that no material departures have been made from the same;

b) The Accounting policies have been selected and applied consistently and judgments and estimates that have been made are reasonable and prudent so as to give a true and fair view of state of affairs of the company at the end of the financial year and profit & loss of the company for that period;

c) Proper and sufficient care have been taken for maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) The Annual Accounts have been prepared on a going concern basis;

e) Internal financial controls have been laid down and followed by the company and that such internal financial controls are adequate and operating effectively and;

f) Proper systems have been devised to ensure compliance with the provisions of all applicable laws and such systems are adequate and operating effectively.

49. ACCOUNTS OF THE SUBSIDIARIES

The statement containing the salient features of the financial statement of a company's subsidiaries, associate companies and joint ventures under the first proviso to sub-section (3) of section 129 of Companies Act 2013 is enclosed as AOC 1 in Annexure II. In terms of General Circular No. 2/ 2011 dated 8th Feb 2011 from Ministry of Corporate Affairs, the Annual Accounts of the subsidiary companies shall be made available to the shareholders seeking such information.

50. COST AUDIT

The Cost Audit of your company for the year 2013-14 was conducted by M/s Musib & Co and the Cost audit report was approved by the Board of Directors in their 309th meeting held on 12th August'2014. The Cost Audit Report did not contain any adverse observation/ comment or qualification from the Cost Auditor. The above report was e-filed in XBRL mode in MCA website vide SRN S31270903 on 19th September'2014.

M/s Musib & Co., Practising Cost Accountants was appointed as Cost Auditor for the year 2015-16 with the recommendation of audit Committee & approval of Board in its meeting held on 28th May'2015. E-form CRA 2 was filed on 12th June'2015.

51. SECRETARIAL AUDIT

In pursuance to Section 204 of Companies Act 2013, company had conducted Secretarial Audit for the year 2014-15 by a practicing Company Secretary M/s Vinod Kothari & Co, Practising Company Secretaries. Their appointment was approved by the Board. The report of Secretarial Auditor and the observations of Secretarial Auditor and Management Explanation are enclosed as Annexure VI.

52. RISK MANAGEMENT POLICY

Company has appointed Ernst & Young LLP for preparation of Risk mitigation measures. They have submitted a draft report of the same.

53. WEBLINK

The following policies may be accessed on the Company's website as under:-

1. Corporate Social Responsibility Policy:

https://www.coalindia.in/DesktopModules/DocumentList/ documents/CIL CSR Policy New Companies Act 2013 16062014.pdf

2. Vigil Mechanism: https://www.coalindia.in/home/vigilance. aspx

3. Policy for determining Material Subsidiary:

https://www.coalindia.in/DesktopModules/DocumentList/ documents/POLICY FOR DETERMINING MATERIAL SUBSIDIARIES 21032015.pdf

4. Related Party Transaction Policy: https://www.coalindia. in/DesktopModules/DocumentList/documents/Related Party Transaction Policy' 01122014(1).PDF

54. B.I.F.R AND BRPSE STATUS Eastern Coalfields Limited (ECL)

The networth of the Company became negative as on 31st March, 1999 and the Company was referred to BIFR in November, 1999.

The Company's case was registered as case no.501/2000.

BIFR sanctioned Draft Rehabilitation Scheme in November, 2004 for implementation. As per the scheme, the networth of the Company was slated to become positive in 2008-09 with concessions from CIL. The Cabinet Committee on Economic Affairs had also approved BRPSE recommended Revival Plan of ECL on 6th October, 2006. As per this Scheme, the networth of the Company was slated to become positive in 2009-10.

BIFR in its hearing held on 22.09.2014 gave the following directions:

a. Monitoring Agency (SBI) clarify to the company about the procedure of implementation of the unimplemented part of the scheme and its treatment in the Balance Sheet regarding waiver of unsecured loan and conversion of current account balance into equity share capital.

b. SBI (MA) to submit a report that the implementation of the sanctioned scheme is in consistent in the manner it was sanctioned.

c. The Company to file Auditors certificate stating status of net worth of the company along with its current Balance Sheet immediately after implementation of the un-implemented part of the sanctioned scheme.

d. Thereafter, SBI (MA) will examine the Auditors certificate on its receipt from the Company and submit its recommendation on the status of net worth of the company in order to enable the Board to decide the issue of deregistration of the reference.

Coal India Limited (the Holding company) in its 310th Board Meeting held on 8th November, 2014 has approved to convert unsecured loan of Rs. 519 crore and current account balance of Rs. 1532 crore as on 31st March, 2003 of ECL with CIL aggregating to Rs. 2051 crore to issue fully paid 6% non-convertible, cumulative, redeemable Preference Shares of face value Rs. 1000/- each to CIL. With the approval of its shareholders, ECL Board had approved to issue 2,05,09,700 6% Non-convertible, redeemable, cumulative Preference Shares of Rs. 1000/- each to Coal India Limited.

As per accounts of the company for the period ending 31st December, 2014, the company has reported a positive networth of Rs. 916.87 crore.

In the BIFR hearing held on 11.02.2015, the Bench issued the following order:

"The sick company, M/s Eastern Coalfields Ltd. (BIFR Case No.501/2000) ceases to be a sick industrial company, within the meaning of Section 3(1) (o) of SICA, as its networth has turned positive."

Hence, no subsidiary of CIL is a Sick Company as on 31st March'2015.

55. ACKNOWLEDGEMENT

The Board of Directors of your Company wishes to record their deep sense of appreciation for the sincere efforts put in by the employees of the Company and Trade Unions. Your Directors also gratefully acknowledges the co-operation, support and guidance extended to the Company by various Ministries of the Government of India in general and the Ministry of Coal, in particular, besides the State Governments. Your Directors also acknowledge with thanks the assistance and guidance rendered by the Auditors, the Comptroller and Auditor General of India and the Registrar of Companies, West Bengal and wishes to place on record their sincere thanks to the consumers for their continued patronage.

56. ADDENDA

The following are annexed.

i) The comments and review of the Comptroller and Auditor General of India on Standalone Accounts of Coal India Limited. (Annexure I)

ii) Auditors Report on the Standalone Financial Statements for the year ended 31st March, 2015 and Management reply (Annexure I (A)).

iii) Statement pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014) as at 31st March, 2015. (Annexure II)

iv) Foreign Exchange Earning and Outgo under rule 8 of Companies (Accounts) Rules 2014. (Annexure III).

v) Details about research and development of the Company, (Annexure IV).

vi) Observations of Auditor on Standalone Financial Statements and Management Explanation under Sec 134(3)(f)(i) of Companies Act 2013. (Annexure V).

vii) Secretarial Audit report under section 204 of Companies Act 2013 and Observation of Secretarial Auditor & Management Explanation (Annexure VI).

viii) Performance against MoU for 2014-15 (Annexure VII).

ix) Disclosure as per Section 135 of Companies Act 2013 on Corporate Social Responsibility (Annexure VIII).

x) The extract of the annual return as provided under sub- section (3) of section 92 in Form No. MGT.9.(Annexure IX).

xi) Policy for determining the Material Subsidiary- Clause 49 of Listing agreement (Annexure X).

xii) Significant and Material Orders passed by the regulators or Courts.(Annexure XI).

xiii) Disclosures under Rule 5(1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 (Annexure XII).

xiv) Loan, guarantees or investments made by the company under section 186(4) of the Companies Act 2013. (Annexure XIII)

xv) Corporate Governance Report.(Annexure XIV).

xvi) The comments and review of the Comptroller and Auditor General of India on Consolidated Accounts of Coal India Limited. (Annexure XV).

xvii) Auditors Report on the Consolidated Financial Statements for the year ended 31st March, 2015 and Management reply. [Annexure XV(A)].

xviii) Observations of Auditors on Consolidated Financial Statements and Management Explanation under Sec 134(3) (f)(i) of Companies Act 2013. [Annexure XV(B)].

For and on behalf of the Board of Directors

Sd/-

S. Bhattacharya

22nd July, 2015 Chairman

Kolkata


Mar 31, 2014

Dear Members,

On behalf of the Board of Directors, I have great pleasure in presenting to you, the 40th Annual Report of Coal India Limited (CIL) and Audited Accounts for the year ended 31st March, 2014, together with the reports of Statutory Auditors and Comptroller and Auditor General of India thereon.

Coal India Limited (CIL) is a 'Maharatna' company under the Ministry of Coal, Government of India with headquarters at Kolkata, West Bengal. CIL is the single largest coal producing company in the world and one of the largest corporate employers with a manpower of 3,46,638 (as on 1st April, 2014). CIL operates through 82 mining areas spread over eight provincial states of India. Coal India Limited has 429 mines of which 237 are underground, 166 opencast and 26 mixed mines. CIL further operates 17 coal washeries, (13 coking coal and 4 non-coking coal) and also manages other establishments like workshops, hospitals, and so on. CIL has 27 training Institutes. Indian Institute of Coal Management (IICM) is an excellent training centre operates under CIL and imparts multi disciplinary management development programmes to the executives. Coal India's major consumers are Power and Steel sectors. Others include cement, fertilizer, brick kilns, and a host of other industries.

CIL has eight fully owned Indian subsidiary companies (direct):

Eastern Coalfields Limited (ECL),

Bharat Coking Coal Limited (BCCL),

Central Coalfields Limited (CCL),

Western Coalfields Limited (WCL),

South Eastern Coalfields Limited (SECL),

Northern Coalfields Limited (NCL),

Mahanadi Coalfields Limited (MCL) and

Central Mine Planning & Design Institute Limited (CMPDIL).

In addition, CIL has a foreign subsidiary in Mozambique 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.

MCL has three subsidiaries, namely MNH Shakti Ltd., MJSJ Coal Ltd. and Mahanadi Basin Power Ltd.

a. MNH Shakti Limited

MNH Shakti Limited has been formed with MCL having 70% stake along with Neyveli Lignite Corporation and Hindalco holding the rest. The coal production is targeted from Talabira OCP with an annual capacity of 20 MT.

b. MJSJ Coal Limited

MJSJ Coal Limited has been formed with MCL having 60% stake along with JSW Steel, Jindal Thermal Power Limited, Jindal Stainless Steel and Shyam Metallics & Energy Limited holding the rest. The coal production is targeted from Gopalprasad OCP with an annual capacity of 15 MT.

c. Mahanadi Basin Power Limited

Mahanadi Basin Power Limited has been formed on 2nd December'2011 as a SPV with 100% shares held by MCL with power generation capacity of 2X800 MW through Pit Head power plant at Basundhara Coalfields.

Joint Venture with OPTCL

MCL has also formed a joint venture Company viz., Neelanchal Power Transmission Company Pvt. Limited (NPTCPL) on 8th January, 2013 with an objective of carrying out power transmission business jointly with M/s OPTCL having an equity share holding of 50:50.

Subsidiaries of SECL

SECL has formed two subsidiary companies viz. M/s Chhattisgarh East Railway Ltd on 12th March'2013 and M/s Chhattisgarh East- West Railway Ltd on 25th March'2013 with 64% holding in each of the subsidiaries for construction of railway lines for evacuation of coal.

1. NOTABLE ACHIEVEMENTS

- For the year 2013-14, the Company has achieved a production of 462.42 MT, removed OB of 806.544 MM3 and achieved an off-take of 471.58 MT., with a growth of 2.26%, 8.01% and 1.38% respectively compared to last year.

- ECL and BCCL not only achieved their AAP targets of coal production, OB removal and off-take but also recorded a

significant growth in coal production and OB removal. SECL has also achieved the AAP target of coal production with 5.11% growth.

- OB removal during this year is noteworthy as it has registered an overall growth of 8.01% over last year. The composite excavation (Coal + OB) in CIL has registered a growth of 6.7% over last year.

- Coal supply to power utilities during the year is 353.83 MT., which is 94.1% of the target and has registered a

growth of about 2.4% compared to last year. This dispatch achievement is 86% against the quantity committed under FSA/MoU to power utilities.

- CIL has paid an interim dividend @ of 290% i.e. Rs. 29/- per share of face value of Rs. 10/-. This is the highest ever dividend paid by the Company till date.

2. FINANCIAL PERFORMANCE

2.1 Financial Results (CIL consolidated)

CIL is one of the largest profit making and tax and dividend paying enterprises. CIL and its subsidiaries have achieved an aggregate pre-tax profit of Rs. 22,879.54 crores for the year 2013-14 against a pre-tax profit of Rs. 24,979.04 crores in the year 2012-13. (Rs. in crores)

Company (CIL subsidiaries/ 2013-14 2012-13 CIL standalone) Profit Profit

ECL (+) 1299.28 (+) 1897.18

BCCL (+) 2089.01 (+) 1709.06

CCL (+) 2525.87 (+) 2683.56

NCL (+) 3355.71 (+) 4420.58

WCL (+) 325.86 (+) 428.87

SECL (consolidated) (+) 7202.40 (+) 6290.37

MCL (consolidated) (+) 5429.08 (+) 6202.48

CMPDIL (+) 34.60 (+) 29.77

CIL (standalone) (+) 15420.47 (+) 10338.03

Sub-Total (+) 37682.28 (+) 33999.90

Less: Dividend from Subsidiaries (-) 14406.82 (-) 9038.08

Total (+) 23275.46 (+) 24961.82

Adjustment for deferred revenue income (+) - (+) 18.34

Adjustment for exchange rate variation on Current Account of overseas subsidiary (+) 0.72 (+) (1.12)

Adjustment for waiver of accrued interest of BCCL (396.64)

Overall Profit as per Consolidated Accounts (+) 22879.54 (+) 24979.04

CIL as a group has achieved post tax profit of Rs. 15,111.67 crores in 2013-14 (excluding share of minority loss of Rs. 0.04 crore; previous year: Nil) as compared to Rs. 17,356.36 crores in 2012-13.

Highlights of performance

The highlights of performance of Coal India Limited including its subsidiaries for the year 2013-14 compared to the previous year are shown in the table below: 2013-14 2012-13

Production of Coal (in million tonnes) 462.42 452.21

Off-take of Coal (in million tonnes) 471.58 465.18

Sales (Gross) (Rs./Crores) 89374.51 88281.32

Capital Employed (Rs./Crores) Note- 1 74891.87 78984.09

Capital Employed (Rs./Crores)- excluding capital work in progress and intangible assets under development. 70386.60 75488.14

Net Worth (Rs./Crores) (as per Accounts) 42391.86 48460.81

Profit Before Tax (Rs./Crores) 22879.54 24979.04

Profit After Tax (Rs./Crores) 15111.67 17356.36

PAT / Capital Employed (in %) 20.18 21.97

Profit before Tax / Net Worth (in %) 53.97 51.54

Profit after Tax / Net Worth (in %) 35.65 35.82

Earning Per Share (Rs.)

(Considering face value of Rs. 10 per share) 23.92 27.63

Dividend per Share (Rs.)

(Considering face value of Rs. 10 per share) 29.00 14.00

Coal Stock (net) (in terms of no. of months net sales) 0.72 0.76

Trade Receivables (net) (in terms of no. of months gross sales) 1.11 1.42

Note-1:

Capital employed = Gross Block of Fixed assets (including capital work in progress and intangible assets under development) less accumulated depreciation plus current assets minus current liabilities.

Transfer to reserves

During the year 2013-14, transfer to various reserves out of CIL (standalone) profits are as under:- Transfer to General Reserves - Rs. 1500.85 crores Transfer to CSR Reserves - Rs. 25.34 crores Transfer to Sustainable Development Reserves - Rs. 10.19 crores

2.2 Dividend Income and Pay Outs (CIL- standalone)

While the financial statements of both CIL standalone and CIL consolidated are presented separately, it is only the CIL (standalone) which is listed and is relevant for dividend payment to its shareholders. The dividend to its shareholders are paid out of CIL's standalone income, the major part of which constitutes the dividend income received by it (CIL - standalone) from its five profit making subsidiaries i.e. CCL, NCL, WCL, SECL and MCL.

The breakup of such dividend (interim + final) received and accounted for during the year from different subsidiaries are given below:- (Rs. in crores) Company (paying subsidiaries) Dividend Income of CIL (standalone)

2013-14 2012-13

CCL 1009.37 1486.74

NCL 2746.12 1662.05

WCL 194.60 184.04

SECL 3444.63 2984.73

MCL 7012.10 2720.52

Total 14406.82 9038.08

During the year, Coal India Limited (standalone) has paid a total dividend (by way of interim dividend) of Rs. 18317.46 crores @ Rs. 29/- per share on 6316364400 number of Equity Shares of Rs. 10/- each fully paid up. Out of the above total dividend, the share of Govt of India was Rs. 16485.71 crores and for other shareholders, Rs. 1831.75 crores. (Earlier year - Govt of India - Rs. 7958.62 crores and other shareholders – Rs. 884.29 crores)

2.3 Observation of the Statutory Auditors

The Statutory Auditors have given their observations on the standalone accounts of the Company for the year ended 31st March'2014. The Auditors' observations in terms of Section 217(3) of the Companies Act'1956 and Management Explanation are enclosed as Annexure IV.

3. COAL MARKETING

3.1 (a) Off-take of Raw Coal

Off-take of raw coal continued to maintain its upward trend and reached 471.58 million tonnes for fiscal ended March 2014, surpassing previous highest figure of 465.18 million tonnes achieved during the last year, i.e., an increase of 1.4 % over the last year. The overall raw coal off-take achieved was 95.8 % of the Annual Action Plan Target.

Company-wise coal off-take:-

The Company-wise target vis-à-vis actual off-take for 2013-14 and 2012-13 are shown below:

Figs. in million tonnes 2013-14 2012-13 Growth over last year

Company AAP Target Achieved % Achieved Achieved Abs. %

ECL 35.20 36.26 103.0 35.84 0.42 1.2

BCCL 33.20 34.20 103.0 33.04 1.16 3.5

CCL 57.20 52.12 91.1 52.89 -0.77 -1.5

NCL 73.50 72.11 98.1 67.29 4.82 7.2

WCL 44.10 39.94 90.6 41.55 -1.61 -3.9

SECL 124.50 122.03 98.0 121.99 0.04 0.03

MCL 123.30 114.34 92.7 111.96 2.38 2.1

NEC 1.00 0.58 58.0 0.62 -0.04 -6.5

CIL 492.00 471.58 95.8 465.18 6.40 1.4

From the above, it may be seen that ECL and BCCL had not only exceeded their targets but also achieved positive growth over last year's off-take. Barring CCL, WCL and NEC all other coal companies registered a positive growth in off-take. Off-take from CCL was affected due to i) strike by contractor's workers, dismantling of Purnadih bridge as per the order of High Court ii) stringent restrictions imposed by State Government to ensure implementation of permissible carrying capacity causing resentment among the contractors and their reluctance to execute the contract iii) Naxalite/Extremists restricted loading from Tori siding for a considerable period of time and iv) frequent Bandhs / local agitation. At WCL, unprecedented heavy rain during monsoon had a devastating effect. Damaged roads and bridges, inundation of open-cast mines, badly affected coal transportation and off-take. Less lifting by MAHAGENCO-Power stations, MPEB-Sarni, HPGCL-Panipat, GEB-Ukai etc. also led to the shortfall.

(b) Sectorwise dispatch of coal & coal products:-

Sector-wise break-up of dispatch of coal and coal products during 2013-14 against target and last year's actuals are given below:-

Figs. in million tonnes

Year 2013-14 2012-13 Growth over Last Year

Sector AAP Target Dispatch % Satn. Actual Abs. %

Power (Util) 376.18 353.83 94.1 345.43 8.40 2.4

Steel * 4.72 3.66 77.5 4.74 -1.08 -22.8

Cement** 7.08 5.45 77.0 6.47 -1.02 -15.8

Fertilizer 2.84 2.29 80.6 2.50 -0.21 -8.4

Others 99.72 106.25 106.5 107.07 -0.82 -0.8

Despatch 490.54 471.48 96.1 466.21 5.27 1.1

* despatch of washed coking coal and raw coking coal for direct feed, blendable coal to steel plants and to external washeries.

** despatch to cement plants excluding cement cpp.

3.2 Dispatch of coal and coal products by various modes:-

Dispatch of coal and coal products during 2013-14 went upto 471.48 million tonnes from 466.21 million tonnes registering a growth of 1.1 %. Overall despatch by non-rail mode had been almost 104% of the target. Growth in despatches via rail mode was 3.3 % whereas overall non-rail mode it went down by 1.4 % compared to previous year. Movement by MGR was at par with last year. The performance could have been even better, but for less movement through MGR at ECL, NCL, MCL and WCL. Road dispatch of CIL was more than the target set.

Dispatch of coal and coal products by various modes for the years 2013-14 and 2012-13 are given below:

(Figs. in million tonnes)

Year 2013-14 2012-13 Growth over Last Year

Mode AAP Target Despatch % Satn. Actual Abs. %

Rail 285.76 259.41 90.8 251.11 8.30 3.3

Road 99.12 112.81 113.8 115.68 -2.87 -2.5

MGR 93.24 88.75 95.2 88.77 -0.02 0.0

Other Modes 12.42 10.51 84.6 10.65 -0.14 -1.3

Overall 490.54 471.48 96.1 466.21 5.27 1.1

3. 3 Wagon Loading

Overall wagon loading materialization was 90.3 % of target. This was achieved due to sustained efforts and regular coordination with railways at different levels. The increase in loading over last year was of 6.12 rakes per day. Company wise performance showed that ECL, NCL and SECL had exceeded last year's level of loading and almost achieved their target. Also, Rake loading performance was more than last year at BCCL, WCL and MCL.

(Figs. in Rake/day)

2013-14 2012-13 Growth over last year

Company AAP Target Achieved % Achieved Achieved Abs. %

ECL 18.22 18.02 98.9 17.78 0.24 1.3

BCCL 24.97 22.16 88.7 20.84 1.32 6.3

CCL 34.95 25.21 72.1 27.26 -2.05 -7.5

NCL 20.98 20.88 99.5 18.67 2.21 11.8

WCL 16.99 15.70 92.4 15.16 0.54 3.6

SECL 35.02 34.25 97.8 32.90 1.35 4.1

MCL 58.69 53.51 91.2 50.83 2.68 5.3

NEC 0.87 0.43 49.4 0.60 -0.17 -28.3

CIL * 210.69 190.16 90.3 184.04 6.12 3.3

Note: Due to revision of wagon loading figures submitted by Railway Board, Kolkata and WCL, Nagpur for the year 2012-13 – the loading is shown as 184.04 rakes/day, instead of 186.4 rakes/day. The difference was caused due to inclusion of non-CIL loading by Railways in the loading figures of WCL which was subsequently corrected by Railways and CIL.

The loading would have been more but for the following reasons:

- Cyclone 'Phailin' followed by devastating rainfall in October' 2013.

- At ECL, regulated lifting by many power utilities like WBPDCL, NTPC, DPL and RGTP-Hissar etc either, due to high stock at TPS end or non-payment of advance coal values as per terms of FSA and frequent railway restrictions due to movement of imported rakes/up-country movement.

- At CCL, Naxalite/Extremists restricted loading from Tori siding for a considerable period of time; frequent bandhs/ local agitation and regulated lifting by HPGCL power stations.

- At NCL, regulated lifting by HPGCL, RRVUNL and Rajghat TPS and non-payment of advance coal values as per terms of FSA by the Power Stations.

- At WCL, less lifting by MAHAGENCO-Power stations, MPEB-Sarni, HPGCL-Panipat, GEB-Ukai etc.

- At SECL, regulated lifting by GEB & RRVUNL.

- At MCL, contractor's workers went on strike at S-3 and S-4 siding of Talcher field during October'13-January'14 and restriction in transportation and loading activity imposed by State Govt of Odisha from 11.00 AM to 3.30 PM during summer due to excessive heat.

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 coal handling plants with capacity of about 296 MT per annum so as to maximize despatches of crushed/sized coal to the consumer. In addition, washeries at BCCL, CCL, WCL and NCL have adequate crushing/sizing facilities of about 39.4 million tonnes.

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 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 56 Surface Miners have been deployed in opencast mines and are working satisfactorily.

v) Joint sampling system is in vogue for major coal consuming sectors e.g. power (utilities as well as captive), steel, cement, sponge iron covering more than 95% of total production of CIL. On overall basis, large consumers having annual contracted quantity of 0.4 MT or more and having FSA have been covered under sampling.

vi) From 1st October, 2013, an independent 3rd party sampling and analysis system was introduced for more transparency in the system and for smooth operation in all the areas of subsidiary coal companies of CIL. Subsidiaries have procured 121 Bomb-Calorimeters for more accurate and transparent results of analysis of coal samples. The sampling and analysis are being done in the presence of customers as per provision of FSA at loading end and based on the results the customers are paying the bills of coal as per analyzed grades.

The achievement of grade conformity in respect of sampling and analysis had been to the tune of 95.63% (approx.) in respect of supplies to power sector during the joint sampling period i.e. from April 2013 to September 2013 and to the tune of 92.63% (approx.) during the third party sampling period i.e. from October 2013 to March 2014.

vii) Electronic weighbridges with the facility of electronic printout have been installed at rail loading points to ensure that coal dispatches are made only after proper weighment. For this purpose, subsidiaries have installed 169 weighbridges in the Railway Sidings and 536 weighbridges for weighment of trucks. Subsidiaries have also taken actions for installation of standby weighbridges to ensure 100% weighment.

viii) 25 Auto Mechanical Samplers are also working in subsidiaries for sampling of coal for the bulk consumers eliminating biasness in sampling process. Procurement of further AMSs is under process.

3.5 Marketing of Coal:

(A) Status of implementation of different provisions under New Coal Distribution Policy (NCDP) is as under:

(i) For power stations, commissioned on or before 31.03.2009, 306 million tonnes of coal had been considered to be supplied through legally enforceable Fuel Supply Agreements (FSA) with a trigger level of 90%. The total quantity covered under FSA against the allocation as on March'14 was 306 million tonnes.

Apart from the above, 179 Letter of Assurances has been issued to power plants by subsidiary companies of CIL, as per the recommendations of various SLC (LT) Meetings, about 426.7 million tonnes of coal. Further, as per Presidential Directives dated 16-4-2012, and a revised directive dated 17-7-2013, the list of Power Plants and aggregate capacity were revised. A total 172 Thermal Power Plants (TPPs) were listed with an aggregate capacity of 78555 MW. Till 31.3.2014, 160 FSAs have been signed with Power Plants for an aggregate capacity of 72575 MW. However, out of the said capacity, TPPs having capacity of 56,937 MW have furnished a long term Power Purchase Agreement (PPA) and qualify for coal supply subject to commissioning etc. After a successful meeting with NTPC in July 2013 to resolve the pending FSA issues, signing of FSA with NTPC power plants appeared in the Presidential Directives have completed for an aggregate plant capacity of 13510 MW which included both wholly owned and JV Plants of NTPC.

(ii) In addition, 6 power plants having Pre-NCDP Long Term Linkage (commissioned and appearing in the MOC letter dated 17.02.2012 not having LOA) are drawing coal under FSA/MOU.

(iii) Out of 1208 valid linked units other than power and steel plants with eligible FSA quantity of 76.24

million tonnes, 875 units had executed FSAs for 58.64 million tonnes. FSAs of existing consumers were signed in 2008 with tenure of 5 years; many of the FSAs had expired and are under renewal process.

(iv) For supply of coal to SME sector, 8 million tonnes was earmarked for allocation to agencies nominated by the State Govt's/ UT's. 17 states / UT's sent their nomination of 24 state agencies for the year 2013- 14 of which 19 state agencies have signed FSAs for 4.08 million tonnes and drawing coal accordingly.

(v) After implementation of NCDP, 418 LOAs were also issued to consumers of sponge iron, CPP and cement as per the recommendations of various SLC (LT) meetings for a quantity of 65.09 million tonnes per annum. Out of these, 312 FSAs have been concluded till date for 40.81 Million tonnes per annum.

(vi) Under Forward E-Auction scheme the quantity allocated was 4.094 million tonnes as against 4.961 million tonnes allocated during the last year. During the period under review, 58.125 million tonnes of coal was allocated under spot e- auction to the successful bidders as against 44.256 million tonnes of coal allocated during the last year. The notional gain through Spot E-auction over and above the notified price was 37.6% as against 49.9% during last year.

(B) Initiative for overcoming logistic bottlenecks:

CIL came out with a scheme for supply of coal "As is – Where is" basis to its power consumers under FSA, to be taken by the purchasers by arranging their own logistics from stock points. The scheme aimed at augmenting coal despatch capacity which is constrained due to various logistics issues restricting transportation to dispatch points.

Similar provision is provided in the FSA for the Seller to offer coal upto 5% of the contracted quantity by using purchaser's own transportation arrangements, either by Road or Road cum Rail (R-C-R) mode in three coal companies namely CCL, MCL and SECL where logistics inadequacy has restrained coal supply potentials of these companies.

(C) Financial Impact of Presidential Directive dated 17th July, 2013:

Due to implementation of Presidential Directive dated 17th July, 2013, no compensation has been paid for short supplies of coal to the new power plants under the terms of FSA during the year. Copy of Presidential Directive is enclosed as Annexure VI.

3.6 Coal Benef ciation

CIL operates 17 coal washeries with a total capacity of 39.40 Mty. Out of these, 13 are coking coal washeries with a total capacity of 24.90 Mty and 4 are non coking coal washeries with a total capacity of 14.50 Mty. CIL had initiated action through global tender to establish 16 coal washeries with a total capacity of 100.60 Mty, out of which 6 are coking coal washeries with a total capacity of 18.60 Mty and 10 are non coking coal washeries with a total capacity of 82.00 Mty. Construction jobs at three washeries are in progress. Letter of Acceptance/Letter of Intimation of two washeries has been issued. Work in other washeries is at different stages of evaluation.

3.7 Stock of Coal.

The stock of coal (net of provisions) at the close of the year 2013-14 was Rs. 4154.61 crores, which was equivalent to 0.72 month value of net sales. The company-wise position of stocks held on 31.03.2014 and on 31.03.2013 is given below:-

(Rs. In Crores) (Rs. In Crores) Net Value of Net Value of Stock in terms of no. of months Net Sales stock as on stock as on Company 31.03.2014 31.03.2013 As on 31.03.14 As on 31.03.13

ECL 298.19 307.98 0.40 0.40

BCCL 618.75 757.05 0.90 1.07

CCL 1067.28 1103.23 1.50 1.55

NCL 484.64 629.32 0.63 0.86

WCL 663.47 584.54 1.20 1.05

SECL 565.61 445.55 0.40 0.33

MCL 418.53 460.38 0.50 0.55

NEC/CIL 38.14 13.11 1.46 0.45

Total 4154.61 4301.16 0.72 0.76

3.8 Trade Receivables

Trade Receivables i.e. net coal sales dues outstanding as on 31.03.2014, after providing Rs. 2589.01 crores (previous year Rs. 1855.65 crores) for bad and doubtful debts, was Rs. 8241.03 crores (previous year Rs. 10480.21 crores) which is equivalent to 1.11 months gross sales of CIL as a whole (previous year 1.42 months). Subsidiary-wise break-up of trade receivables outstanding as on 31.03.2014 as against 31.03.2013 are shown below:- Figures in Rs. Crores

Company Trade Receivables Trade Receivables As on 31.03.2014 As on 31.03.2013

Gross Net of provisions Gross Net of provisions

ECL 2143.71 1720.01 3981.52 3582.13

BCCL 2091.42 1570.15 1934.31 1372.05

CCL 2498.31 1875.72 2080.45 1533.87

NCL 1609.62 955.94 1741.28 1738.21

WCL 548.64 468.93 551.66 471.27

SECL 1579.35 1336.78 1582.46 1350.29

MCL 333.11 298.39 451.93 430.91

NEC/CIL 25.88 15.11 12.25 1.48

Total 10830.04 8241.03 12335.86 10480.21

3.9 Payment of Royalty, Cess, Sales Tax, Stowing Excise Duty, Central Excise Duty, Clean Energy Cess, Entry Tax and Others

During the year 2013-14, CIL and its Subsidiaries paid/adjusted Rs. 19713.52 crores (previous year Rs. 19731.11 crores) towards Royalty Cess, Sales Tax and other levies as detailed below:-

Figures in Rs. Crores

2013-14 2012-13

Royalty 7,559.11 7248.61

Cess & Others 2,202.65 2355.73

Sales Tax / VAT/CST 2,960.08 2908.49

Stowing Excise Duty 464.26 457.54

Central Excise Duty 3,920.25 4227.49

Clean Energy Cess 2,390.86 2319.35

Entry Tax 216.31 213.90

Total 19,713.52 19731.11

4. COAL PRODUCTION

4.1 Raw coal production

Production of raw coal during 2013-14 was 462.422 million tonnes against 452.211 million tonnes produced in 2012-13. The company- wise production is given below:

(Figure in million tonnes)

Coking Non-Coking Total

Company 2013-14 2012-13 2013-14 2012-13 2013-14 2012-13

ECL 0.048 0.043 36.006 33.868 36.054 33.911

BCCL 30.054 26.970 2.560 4.243 32.614 31.213

CCL 18.440 16.156 31.582 31.905 50.022 48.061

NCL 0.000 0.000 68.639 70.021 68.639 70.021

WCL 0.249 0.330 39.480 41.957 39.729 42.287

SECL 0.125 0.157 124.136 118.062 124.261 118.219

MCL 0.000 0.000 110.439 107.894 110.439 107.894

NEC 0.000 0.000 0.664 0.605 0.664 0.605

CIL 48.916 43.656 413.506 408.555 462.422 452.211

4.2 Production from underground and opencast mines.

Coal production from underground mines in 2013-14 was 36.113 million tonnes compared to 37.776 million tonnes in 2012-13. Production from Open cast mines during 2013-14 was 92.19% of total raw coal production. The company-wise production is given as under:

(Figures in million tonnes)

Underground Production Opencast Production Total Production

Company 2013-14 2012-13 2013-14 2012-13 2013-14 2012-13

ECL 6.871 6.849 29.183 27.062 36.054 33.911

BCCL 2.704 3.153 29.910 28.060 32.614 31.213

CCL 0.956 1.024 49.066 47.037 50.022 48.061

NCL 0.000 0.000 68.639 70.021 68.639 70.021

WCL 7.730 8.200 31.999 34.087 39.729 42.287

SECL 16.416 16.869 107.845 101.350 124.261 118.219

MCL 1.433 1.678 109.006 106.216 110.439 107.894

NEC 0.003 0.003 0.661 0.602 0.664 0.605

CIL 36.113 37.776 426.309 414.435 462.422 452.211

4.3 Hard Coke and Washed Coal (Coking) Production

Subsidiary-wise production of Hard Coke and Washed Coal (Coking) was as under:

(Figures in Lakh Tonnes)

Hard Coke Washed Coal (Coking)

Company 2013-14 2012-13 2013-14 2012-13

ECL - - - -

BCCL 0.00 0.00 9.53 13.29

CCL - - 13.58 12.39

NCL - - - -

WCL - - 1.20 1.44

SECL - - - -

MCL - - - -

NEC - - - -

CIL 0.00 0.00 24.31 27.12

4.4 Overburden Removal

Overburden Removal during 2013-14 was 806.544 million cubic metres against 746.702 million cubic metres achieved in 2012-13 recording a splendid growth of 8.01%. The Company-wise details of overburden removal is shown below:

(Figures in million cubic metres)

Company 2013-14 2012-13

ECL 85.756 76.448

BCCL 85.419 84.259

CCL 59.022 63.308

NCL 208.787 195.706

WCL 120.076 113.685

SECL 144.875 118.202

MCL 96.028 90.361

NEC 6.581 4.733

CIL 806.544 746.702

4.5 Future Outlook

In the terminal year (2016-17), as per XII Plan document, growth rate of demand for coal in India has been envisaged at 7.09% (980.50 Mt). In 2014-15, demand for coal in India has been estimated to the tune of 787.03 Mt against 769.69 Mt in 2013-14.

In the TY of XII Plan (2016-17), the envisaged indigenous coal production is 795.00 Mt. Out of this, share of CIL is 615 Mt (77 % share of total production)with an envisaged growth rate of 7.12 %. Out of this, 30.20 % is to come from existing mines, 54.2 % from projects under implementation and 15.6% from new projects to be taken up. On date, 148 projects are under various stages of implementation. Further, 126 new projects are also identified to be taken up in future. Coal production target of CIL in 2014-15 is 507 Mt with a growth of 9.61 % over last year's achievement.

CIL has proposed a capital outlay of Rs. 25, 400 crores in XII Plan plus an ad-hoc provision of Rs. 35,000 crores for acquisition of assets abroad and development of the acquired coal blocks in Mozambique. The capital expenditure for the year 2014-15 has been envisaged at Rs. 5225.00 crores plus additional ad-hoc provision of Rs. 4500 crores for acquisition of coal assets abroad and development of coal blocks in Mozambique.

Railway infrastructure Projects: In order to achieve the planned growth in production and evacuation in future, CIL has undertaken the following major Railway Infrastructure Projects to be executed by Indian Railways Authority:

1. Tori-Shivpur-Khatotia new BG Line with a length of about 93.45 Km for North Karanpura Coalfields of Central Coalfields Limited, Ranchi, Jharkhand. The work is under execution in Tori-Shivpur Section by East Central Railway, Patna.

2. Jharsuguda –Barpalli Railway Infrastructure Project with a length of about 52.4 Km for IB Coalfields of Mahanadi Coalfields Limited, Sambalpur, Odisha. The work is under execution by South Eastern Railways, Kolkata.

3. To cater to evacuation of coal from Mand-Raigarh and Korba-Gevra Coalfields of SECL, following 2 Railway Corridors have been identified for construction:

(a) East Corridor (Bhupdeopur-Gharghoda-Dharamjaiigarh upto Korba with a spur from Gharghoda to Donga Mahua to connect mines of Gare-Pelma Block) with a length of about 180 km.

(b) East-West Corridor (Gevra Road via Dipka, Kathghora, Sindurgarh, Pasan) with a length of about 122 Km

An MoU has been signed among SECL, IRCON International Limited and the Government of Chhattisgarh (GoCG) for Sl.No.3 with the equity share holding of 64%, 26% and 10% respectively.

5. POPULATION OF EQUIPMENT

The population of Major Opencast Equipment (Heavy Earth Moving Machinery) as on 1.4.2014 and on 1.4.2013 alongwith their performance in terms of availability and utilisation expressed as percentage of CMPDIL norm is tabulated below:

No. of Equipment Indicated as % of CMPDIL Norm

Availability Utilisation As on As on Equipment 1.4.2014 1.4.2013 2013-14 2012-13 2013-14 2012-13

Dragline 36 39 97 90 80 77

Shovel 732 715 91 88 78 77

Dumper 2977 3109 102 101 70 70

Dozer 977 972 91 91 58 58

Drill 693 707 104 99 61 65

6. CAPACITY UTILISATION

SYSTEM CAPACITY UTILIZATION

The overall system capacity utilization of CIL as a whole for the year 2013-14 has worked out to be 84.75 %. It was 82.99 % during 2012- 13. The subsidiary-wise details in terms of percentage vis-a-vis the preceding year are as under:

(Unit %)

Company 2013-14 2012-13

ECL 130.78 118.97

BCCL 93.61 79.29

CCL 84.66 84.89

NCL 75.54 76.69

WCL 92.47 93.41

SECL 88.49 80.52

MCL 68.60 75.61

NEC 82.38 66.34

Total CIL 84.75 82.99

7. PRODUCTIVITY: OUTPUT PER MANSHIFT (OMS)

Output per manshift (OMS) during 2013-14 improved to 5.62 tonnes from 5.32 tonnes per manshift of previous year. The company-wise position is given in the following table:

(Figures in tonnes)

Underground OMS Opencast OMS Overall OMS

Company 2013-14 2012-13 2013-14 2012-13 2013-14 2012-13

ECL 0.48 0.46 10.96 10.17 2.13 1.94

BCCL 0.31 0.35 9.38 8.31 2.74 2.50

CCL 0.33 0.33 6.26 6.09 4.64 4.42

NCL 0.00 0.00 13.78 13.65 13.78 13.65

WCL 1.07 1.10 5.14 5.03 2.96 2.97

SECL 1.35 1.37 21.45 19.26 7.23 6.72

MCL 0.84 0.97 22.16 21.34 16.69 16.07

NEC 0.01 0.01 4.33 3.77 1.54 1.30

CIL 0.76 0.77 12.18 11.48 5.62 5.32

8 PROJECT FORMULATION

8.1 Preparation of Reports: 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 2012-2013 for building additional coal production capacity to the tune of 75 Mty. Revision of Project Reports/Cost Estimates for projects was also taken up along with new PRs Thrust was laid on preparation of reports of identified projects of XII Plan.

Other important jobs undertaken during the year:

- Master plan of coalfields

- Preparation and evaluation of RFQ (Request for Qualification) and RFP (Request for Proposal) documents and customization of bid documents for coal washeries

- Operational plans for large OC mines

- Environment Management Plan (EMP)

- Mining Plans and Mine Closure Plans of OC and UG mines

- Mine capacity assessment of underground and opencast mines of CIL.

- Various technical studies relating to operation of opencast and underground mines.

- Performance analysis of HEMM operating in OC mines of CIL.

- Preparation of Standard Bid Documents for procurement of Continuous Miner in underground mines of CIL.

- Preparation of Model Bid Document and Conceptual Report for setting up of FBC based thermal power plants using washery rejects.

- Detailed design and drawings, NIT, tender scrutiny, etc.

Expert Consultancy Services: During the year 2013-2014, 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 and Electrical), Benchmarking of Diesel and Electrical Consumption and Fixation of Diesel and 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 and Vibration Studies and Explosive Utilization, Ventilation/Gas Survey of UG mines, Mining Electronics, Petrography and Cleat Study on coal samples, Coal Core Processing and Analysis, Washability tests, OBR Survey, Man Riding System, Soil Erosion Study, Slope Stability Study, Effl uent/Sewerage Treatment Plants, Assessment of Normative Cost of sand stowing for stowing mines, etc.

8.2 Project Implementation

a) The following 4 coal projects, each costing Rs. 20 crores and above, with an ultimate capacity of 11.00 Mty and completion cost of Rs. 653.97 crores, have been completed during the year 2013-14:-

Sanctioned Completion Cost Sl No Company Name of Projects Type Capacity (Mty) (Rs.crores)

1. NCL Bina Expn OC 1.50(Incr) 67.53

2. MCL Lajkura Expn OC 2.50 60.77

3. MCL Samaleswari OC 5.00 382.10

4. CCL Urimari EPR OC 2.00 143.57

TOTAL 11.00 653.97

b) 1 Coal project, costing Rs. 20 crores and above, with an ultimate capacity of 1.30 MTY and sanctioned capital of Rs. 40.16 crores have started contributing production during the year 2013-14 :-



Sanctioned Capacity Sanctioned Capital Sl No Company Name of Projects Type (Mty) (Rs. Crores)

1 CCL Kuju Schm. OC 1.30 40.16

Status of Ongoing Projects:

Presently, there are 118 mining (excluding 13 projects of WCL approved subject to finalization of Coal Supply Agreement on cost plus basis.) and 25 non-mining projects, costing Rs. 20 crores and above, under implementation.

Out of 118 mining projects, 31 projects are running on schedule and 87 are delayed. Out of 25 non-mining projects, 21 are on schedule and 4 are delayed.

Status of ongoing projects costing Rs. 20 crores. and above:-

Projects Total projects Projects on schedule Projects delayed

Mining 118 31 87

Non Mining 25 21 4

Total 143 52 91

Reasons for the delay Mining Projects:

SL REASONS FOR THE DELAY NO OF PROJECTS

1 DELAY IN LAND ACQUISITION + FC + R&R 56

2 MISCELLANEOUS 31

TOTAL 87

Non – mining Projects:

Out of 4 delayed non-mining projects, all are delayed due to land and rehabilitation problems including forest problem.

8.3 Projects Sanctioned (Costing Rs. 20 crores & above) :

(a) No Advance Action proposal has been sanctioned during 2013-14.

(b) CIL Board has sanctioned 3 mining projects during 2013-14.

Sanc. Capacity Sanc. Capital Sl No Project Sub Date of Approval (MTY) (Rs. crores)

50.00 7612.33

1. Kusmunda Expn OCP SECL 03.08.2013 (35 Incr) (Incr 6912.33)

2. Chhal Expn OCP SECL 16.12.2013 6.00 2127.59

3. North Tisra South Tisra OC BCCL 12.02.2014 6.00 555.52

Total 62.00 10295.44

(c) No Non-mining project has been approved during the year 2013-14 by CIL.

(d) The Subsidiary Company Boards have sanctioned 4 mining projects, costing Rs. 20 crores and above, for a total capacity of 6 Mty and sanctioned capital of Rs. 743.32 crores under their delegated powers during the year 2013-14:

Sanc Capacity Sanc Capital

Sl No Project Sub Date of Approval (MTY) (Rs. crores)

1. Sayal 'D' OCP CCL 10.10.2013 1.00 48.53

2. Jeevandhara OC CCL 19.11.2013 1.00 282.20

3. Mugoli& Nirguda Ext OC WCL 06.02.2014 3.00 372.52

4. Hindustan Lalpeth WCL 06.02.2014 1.00 40.07

Total 6.00 743.32

(e) The Subsidiary Boards have sanctioned following 3 Non-mining Projects, costing Rs. 20 crores and above, under their delegated powers during 2013-14:-

Sl Cos Non-Mining Projects approved Capital (Rs.Cr) Approval Date

1. MCL Lingraj Silo Loading arrangement 227.00 16.05.14

2. MCL Expn of BOCM (BOCM 6 & 7) 27.15 17.06.14

3. MCL Concrete pavement in coal transportation road of Kaniha OC 26.91 24.12.13

8.4 Revised Project /Revised Cost Estimates

(a) No RPR/RCE was sanctioned by CIL during 2013-14.

(b) Following RPRs/RCEs sanctioned by the Subsidiary Company Boards during 2013-14.

Capital Sl Cos Projects approved Capacity (Mty) (Rs. Crores)

1. MCL Lajkura Expn RCE OC 1.50 60.77

9. CONSERVATION OF ENERGY

CIL's subsidiaries have undertaken following measures, interalia to conserve energy :

- Power capacitors are added / replaced wherever necessary to improve power factor on the basis of regular monitoring and assessment.

- Energy Audit and Benchmarking are conducted for selected opencast / underground mines by CMPDIL on regular basis.

- Energy efficient lamps are widely used in places of new installations. Existing energy inefficient lamps are gradually replaced with energy efficient lamps.

- Time switches are installed at various places for automatic control of street lights.

- Power supply systems are re-organized wherever necessary for efficient use of energy.

- Re-organization of pumping including pipeline is done at places, as deemed necessary, to avoid stage pumping thereby improving efficient use of energy.

- Various energy conservation measures are taken and general awareness is propagated among all concerned for efficient use of energy.

- Demand side management is done by improving load factor and limiting maximum demand wherever practicable by staggering aidable load from peak hours to off-peak hours.

- CIL coordinates with the subsidiaries and follows up on their activities for energy conservation.

- Performances of subsidiaries on energy conservation are discussed during the co-ordination meeting.

- Project-wise specific consumption of diesel is monitored and the same is compared with benchmark.

- A CIL R&D endeavour under the project entitled 'Green House Gas recovery from coal mines and coal beds for conversion of energy (GHG2E)' was taken up and the main objective of the project study is to develop capacity building in the new area of Coal Mine Methane (CMM) drainage and CO2 has been completed.

- A project entitled 'Research and Development on efficient energy management pilot study and action plan' was taken up with CIL R&D fund to identify feasible new technologies and functionalities for improvement in energy management in mines through key performance indicators and adoption of renewable energy like possibility of usage of solar photovoltaic cells for the existing and future buildings under green infrastructure concept.

10. CAPITAL EXPENDITURE

Overall capital expenditure during 2013-14 was Rs. 4329.86 crores as against Rs. 2915.23 crores in previous year, the subsidiary-wise details of which are given below:-

Figures in Rs. crores

2013-14 2012-13

Company (BE) Actual (BE) Actual

ECL 525.00 408.87 450.00 202.94

BCCL 850.00 504.24 300.00 266.15

CCL 500.00 657.18 425.00 397.42

NCL 800.00 301.76 850.00 444.19

WCL 450.00 287.66 350.00 264.05

SECL 850.00 956.21 900.00 628.85

MCL 500.00 876.84 500.00 531.56

CMPDIL 30.00 20.26 30.00 6.94

NEC/CIL/Others* 495.00 316.84 470.00 173.13

Total 5000.00 4329.86 4275.00 2915.23

* Include Master Action Plan.

Capital Expenditure incurred during 2013-14 is about 86.60% of BE (68.19% in 2012-13).

11. CAPITAL STRUCTURE

The authorized share capital of the Company as on 31.03.2014 was Rs. 8904.18 crores, distributed between Equity and Non-cumulative redeemable preference shares as under:

(i) 800,00,00,000 Equity Shares of Rs. 10/- each (Previous Year 800,00,00,000 Equity Shares of Rs. 10/- each) Rs. 8000.00 crores

(ii) 90,41,800 Non-cumulative 10% Redeemable Preference Shares of Rs. 1000/- each Rs. 904.18 crores (Previous Year 90,41,800 Non-cumulative 10% Redeemable Preference Shares of Rs. 1000/- each)

Total Rs. 8904.18 crores

Listing of shares of Coal India Limited in Stock Exchanges:

Pursuant to divestment of 10% of total equity shares held by Hon'ble President of India (Govt. of India), to the public, the shares of Coal India Limited are listed in two major Stock Exchanges of India, viz. Bombay Stock Exchange and National Stock Exchange on 4th November, 2010.

Further divestment by Govt. of India to CPSE – ETF:

During FY 2013-14, Govt. of India has further divested 0.35% of total equity shares equivalent to 2,20,37,834 number of equity shares by way of placement of such shares in Central Public Sector Exchange Traded Fund (CPSE-ETF) and post such divestment, the Govt. of India holds 89.65% of the total equity share capital as on 31.03.2014.

Pursuant to above the shareholding pattern in CIL stood as follows:

As on 31.03.2014 As on 31.03.2013

Shareholding Share Capital Shareholding Share Capital Pattern (%) (Rs. crores) Pattern (%) (Rs. crores)

Government of India 89.65 5662.69 90.00 5684.72

CPSE - ETF 0.35 22.03 - -

Other Investors 10.00 631.64 10.00 631.64

Total 100.00 6316.36 100.00 6316.36

12. BORROWINGS

Aggregate borrowings of CIL have decreased to Rs. 177.82 crores in 2013-14 from Rs. 1305.30 crores in 2012-13, as detailed below.

Figures in Rs. crores

Particulars 2013-14 2012-13

Foreign Loans including deferred credits

IBRD/JBIC* - 1136.23

EDC Canada 168.07 160.35

Liebherr France SA., France 9.75 8.72

TOTAL 177.82 1305.30

* The foreign currency loans drawn from JBIC Bank (denominated in Japanese Yen) and IBRD Bank (denominated in US Dollar) for implementation of coal sector rehabilitation project in various subsidiaries has been prepaid during the year on 05.11.2013 and 06.12.2013 respectively.

The debt servicing has been duly met in all the components of the loans / deferred credits.

13. INTERNATIONAL CO-OPERATION International Co-operation

Coal India is envisaged for foreign collaboration with a view to:-

¦ Bring in proven and advanced technologies and management skills for exploiting UG and OC mines and coal preparation

¦ Exploration and exploitation of Methane from Coal bed, Abandoned mine, Ventilation air, Shale gas, Coal gasification, etc.

¦ Locating overseas countries interested in Joint Venture in the field of coal mining with special thrust on coking coal mining

The priority areas include acquisition of modern and high productive underground mining technology, introduction of high productive opencast mining technology, working underground in difficult geological conditions, fire control and mine safety, coal preparation, application of 3D seismic survey for exploration, extraction of Coal Bed Methane, Coal Gasification, application of Geographical Information System, Satellite Surveillance, environmental control, overseas ventures in coal mining

CIL would endeavour to acquire suitable technology through international bidding. Bilateral cooperation may also be encouraged for locating availability of cost effective and latest technologies in the aforesaid areas, with discernibly advantages CIL, therefore, has been following both the routes

Following are the details of activities that took place with various countries during 2013-14

Indo-US Collaboration

The 10th Indo-US Coal Working Group meeting was held on 10th March, 2014 in New Delhi. The status of ongoing projects under ndo-US CWG was reviewed. Presentations were made by CMPDI/ CIL on new areas of collaboration

The status of ongoing projects under Indo-US CWG is as follows:-

a) Development of Coal Preparation Plant Simulator:

The identified US consultant M/s Sharpe International LLC, USA (SI) was awarded the work in October 2009 for development of a Coal Preparation Plant Simulator. Total work was split into 18 activities out of which 11 activities were completed. Later, SI expressed in October 2013 their inability to complete the work. US representatives were requested to take up the matter with the M/s Sharpe for a meaningful conclusion of the project.

b) Cost Effective Technology for Beneficiation and Recovery of Fine Coal :

US DOE had identified Virginia Tech University (VTU) for establishing an efficient technique for beneficiation and dewatering of Indian coking coal fines through a demonstration plant based on the technologies identified after pilot scale tests of Indian coking coal samples on different state-of-the- art equipment at VTU. A joint project proposal was drawn and approved by CIL R&D Board in Dec. 2010. The VTU, however, expressed its inability to sign an international agreement and as such the project could not be started. US representatives were requested to apprise different available technologies for fine coal beneficiation and recovery so that different projects can be taken up based on merit.

c) Underground Coal Gasification (UCG):

UCG, which may offer solution to untapped isolated coal deposits lying at depths, is one of the key areas under Indo-US collaboration. In order to promote R&D efforts for potential application of technological advances and to establish these in the Indian geo- mining condition, a brief proposal for capacity building has been sent by MoC to Lead Coordinator, India-US Coal Working Group, USA. It was proposed that the proposal would be taken up by CMPDI, with the budget available under R&D fund of Coal India Limited. UC-CIEE can be the co-implementing agency from the US side.

New Areas of Collaboration:

a) Advanced Dry Coal Cleaning technologies

b) 3 D Seismic Surveys

c) Planning Large Capacity Opencast Mines

d) Mine Rehabilitation and Reclamation

Indo-EU Collaboration

The 8th meeting of Indo-EU working group on Coal and Clean Coal Technologies was held on 28-29 Nov, 2013 at Chennai. One of the

key areas for cooperation is the development and deployment of advanced coal mining. The aim of advanced coal technologies is to increase the efficiency and safety in coal production and to mitigate environmental and social impacts. Co-operation of EU was sought for various aspects related to coal mining like steeply dipping seated coal seams as under:

- Innovative mining technologies and environment friendly solutions.

- Development of technology for deep coal mines and possible solutions for Indian conditions.

- Technological improvements to manage these risks, especially on the prevention, and include rock stress monitoring system, mine atmosphere control, and methane drainage technique, personnel tracking system and staff training for emergency situations.

- The need to modernize, develop and adopt technologies for high capacity and productive underground coal mining from deep and thick coal seams.

- Underground coal mining technologies for mass production for steep and gassy coal seams.

- Results of feasibility study to design a mining methodology for NEC coalfields.

Both sides had agreed to hold the next meeting of the Coal Working Group in September/October, 2014 in one of the EU coal regions.

A proposal titled 'Introduction of a new underground mining technology at North-East Coalfields in Assam, India' was placed before the Indo-EU Working Group on clean coal technology for consideration in 2012. The feasibility study to design a suitable mining technology and operation was awarded to a Spanish Consortium led by AITEMIN. The members from the Spanish Consortium visited from 10-14 Feb, 2014 for preliminary discussions and data collection. The report is likely to be submitted by August/September, 2014.

Indo-Australian Collaboration

CMPDI and CSIRO (Commonwealth Scientific and Industrial Research Organisation), Australia entered into an MoU on 12th June, 2013 to encourage programmes of exchange and collaboration in areas of mutual interest.

In pursuant to the directive of the Ministry of Coal, CMPDI on behalf of CIL, is contemplating to take up a project on mitigation and utilization of Ventilation Air Methane (VAM) at Moonidih, BCCL, with CSIRO, Australia under National Clean Energy Fund (NCEF) of Government of India. A project proposal for implementation of project is under preparation.

Other activities through international cooperation

CMM/CBM Clearinghouse

With an objective of supporting development of CBM/CMM resources, a Govt. level understanding was reached between the Ministry of Coal (MoC), Govt. of India and United States Environmental Protection Agency (USEPA) on establishment of CMM/CBM Clearinghouse. The clearinghouse was established at CMPDI, Ranchi in November, 2008 with an objective to promote CBM/CMM industry in India. The term of the Clearinghouse has been extended for a further period of 3 years up to November, 2015, consequent to the approval of MoC and USEPA has also given its consent for extension of terms of the Clearinghouse. An International workshop on "Development of coal based non- conventional energy resources in India" has been organized under the CMM/CBM Clearinghouse and CMPDI at Ranchi in November, 2014.

14. WORLD BANK FINANCED PROJECTS FOR 2013-14

The net utilization of loan disbursement by IBRD and JBIC was 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 by IBRD and JBIC was completed in December 2003. As such there was no drawal of loan since January 2004.

During this year, with the repayment of scheduled instalment and prepayment of balance loan of USD 106.90 million to IBRD and JPY 9413.95 million to JBIC respectively, total CSRP loan was repaid.

COAL VIDESH DIVISION

Initiatives undertaken for acquisition and development of coal assets abroad

(A) Activities of Coal India Africana Limitada (CIAL), Mozambique.

The prospecting Licenses for coal, having nos. 3450L and 3451L, covering a total area of 224 square kilometres were granted to CIAL, a wholly owned subsidiary of CIL in Mozambique in 2009.

Various activities related to exploration of the allotted coal blocks were undertaken in 2013-14 which are as follows:

¦ Completion of 1st Phase drilling (5157 mtrs completed by 31.3.13 and 4843 mtrs completed in FY 2013-14)

¦ Completion of Geological Mapping in the allotted coal blocks in May 2013

¦ Awarded contract for 2nd stage drilling of 30000 mtrs in Nov 2013 and completion of 30,602 mtrs of drilling

¦ Completion of survey work for delineation of whole of the concession area and survey of the drilled and planned boreholes.

¦ Awarding contract for geophysical logging for an estimated 15000 mts in November 2013 and completion of geophysical logging work.

¦ Completion of analysis of coal samples from 9 (nine) boreholes in laboratories in India and 2(two) boreholes in Mozambique

(B) Global Expression of Interest inviting proposals related to acquisition of overseas coal assets

In accordance with the decision of Foreign Acquisition Committee, a sub-committee of the Board of CIL, Coal Videsh Division of CIL, had published a notice inviting acquisition proposal from the owners of coal assets directly or through the mandated Merchant / Investor bankers (MB/ IB) under the GOI policy on Acquisition of Raw material assets abroad by CPSEs'

The status of progress for the financial year 2013-14 is as follows

¦ Proposals received in response to the advertisement were short listed

¦ Completed 1st level technical review in respect of shortlisted proposals and presented its finding to high level meetings.

¦ Review of legal and regulatory aspects of Foreign Direct Investment (FDI) in coal mining sector in ndonesia is in process.

(C) Status on setting up of Apex Planning Organisation (APO) and Apex Training Organisation (ATO) in Mozambique

The Prime Minister of India, declared USD 500 million of grant-in- aid for 21 projects for capacity building in Africa region, in India Africa Forum Summit (IAFS-1) held in New Delhi on 8-9 April 2008, which included setting up of an Apex Planning Organization (APO) and an Apex Training Organization (ATO) for coal sector in SADC region in Mozambique. Initially, entire funding for the APO and ATO was to be out of the Ministry of External Affairs (MEA) funds. Coal ndia Limited (CIL) was requested to execute the project utilizing the grant of MEA, GOI and to provide the balance funding for the project. The same was approved by CIL Board and the work could be taken up after signing of MOUs by the two governments. Initial cost estimates for APO and ATO were prepared in 2009 and it was decided to update the estimate.

The actions taken during the financial year 2013-14 are as follows

¦ A team from CMPDI visited Mozambique and held discussions with Mozambican officials to prepare a revised realistic cost estimate for both the APO and ATO using cost indices/parameters prevalent in Mozambique. CMPDIL prepared a revised cost estimate (RCE) for setting up and running of APO and ATO.

¦ Preparation of MOU, to be signed by the Govt of Mozambique and CIL related to setting up of APO and ATO in Mozambique and obtaining approval from respective Govts

¦ Draft MOUs were vetted by the Govt. of India and Mozambique and is being processed for further action

15. MASTER PLAN FOR DEALING WITH FIRE, SUBSIDENCE AND REHABILITATION

The Master Plan for dealing with fire, subsidence and rehabilitation in the lease hold of Bharat Coking Coal Limited (BCCL) and Eastern Coalfields Limited (ECL) was approved on 12th August, 2009 by Govt. of India with an estimated investment of Rs. 7,112.11 crores for Jharia Coalfields and Rs. 2,661.73 crores for Raniganj Coalfields. Implementation period has been delineated as 10 years

¦ Implementation of Master Plan is being monitored on half-yearly basis by High Powered Central Committee (HPCC) under the Chairmanship of Secretary (Coal)

¦ During FY 2013-14, HPCC meeting was held on 22.07.2013 and 24.01.2014 and Advisor (Projects) has conducted review meetings on 23.04.2013 & 24.10.2013 on the advice of Secretary, MoC

Master Plan dealing with Fire, Subsidence and Rehabilitation in the leasehold of Eastern Coalf elds Limited (ECL)

Asansol Durgapur Development Authority (ADDA), a state Govt. organization has been identified as implementing agency for Rehabilitation of Non-ECL houses. Contingency charges @ 3% and Supervision charges @5% (total 8%) are to be paid to ADDA for implementation, which is included in the assessed capital requirements.

The salient features of the approved Master Plan are as follows

¦ No of unstable sites proposed for Rehabilitation :- 139 + 2 (added as per DGMS) = 141

¦ No of houses/families assessed for Rehabilitation :- 33,196.

¦ Requirement of Land assessed for Rehabilitation :- 896.29 Ha.

¦ No of Locations identified for Diversion of Infrastructure :- 7 (Railway lines, roads and IOC pipelines)

¦ Capital Requirement estimated for Diversion projects :- Rs. 11.35 crores.

¦ Capital Requirement estimated for Rehabilitation :- Rs. 2,610.10 crores

¦ Capital Requirement estimated for Fire schemes :- Rs. 40.28 crores.

¦ Total Capital Requirement assessed :-Rs. 2,661.73 crores

Master Plan dealing with Fire, Subsidence and Rehabilitation in the leasehold of Bharat Coking Coal Limited(BCCL)

Jharia Rehabilitation & Development Authority (JRDA), a state Govt. organization, has been identified as the implementing agency for Rehabilitation of Non-BCCL houses. Contingency charges @ 3% and Supervision charges @ 5% (total 8%) are to be paid to JRDA for implementation, which is included in the assessed capital requirements.

¦ No. of fire areas for which action plan has been proposed :- 67

¦ No. of houses to be vacated :- 98,314.

¦ No. of houses proposed to be reconstructed :- 79,159.

¦ Requirement of Land assessed for Rehabilitation :- 1,504.99 Ha.

¦ Capital Requirement estimated for Rehabilitation :- Rs. 4,780.60 crores

¦ Capital Requirement estimated for Diversion projects :- Rs. 20 crores (Railway line, Road)

¦ Capital Requirement estimated for Fire schemes :- Rs. 2,311.50 crores

¦ Total Capital Requirement assessed :-Rs. 7,112.11 crores

The R&R Package for Non-ECL and Non-BCCL endangered people are:

a) Cash compensation equivalent to assessed cost of homestead land and 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 upto a maximum limit of owned land at unstable site, or in lieu of constructed fl at of 40 Sq. M. as super built up area having two rooms, a kitchen and a toilet in a triple storied building will be provided. In such case, no other cash compensation shall be paid.

b) Cash compensation in lieu of free plot along with the entitled compensation is 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 family will be provided a constructed fl at of 38.92 Sq. M. as super built up area.

d) Head of each family will be paid a minimum wage for 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 the new township.

f) No employment shall be offered for any rehabilitation under the Master Plan.

The major implementation activities proposed to be completed in Phase I and II are:

I. Demographic survey of affected people, valuation of homestead land and house, including all structures / infrastructure on that land. Preparation / Distribution of photo-identity cards etc.

II. Identification and acquisition of land for proposed townships.

III. Tendering and awarding of work for land survey and township planning.

IV. Survey of land.

V. Township planning.

VI. Tendering and Award of work for townships.

VII. Construction of approach road, development of land and infrastructural facilities, demarcation of plots, construction of fl ats and providing amenities like schools, bank, post office, hospital, community centre, playground, shopping centre, etc.

VIII. Allotment of plots / fl ats for resettlement.

IX. Shifting of people from unstable sites (Rehabilitation & Resettlement).

X. Demolition of super structure / infrastructures at unstable sites.

XI. Fire mitigation.

XII. Diversion of surface infrastructure like Rail, Road, IOC pipeline etc.

Action taken for Implementation of Master Plan Achievement upto 31.3.2014

A. For Raniganj Coalf elds:

1) Status of demographic survey

Demographic survey work has been completed for all 126 sites. There are 10 locations having no habitation, 3 locations with only ECL population and at 2 locations survey could not be completed due to strong public resistance. The final list has already been published which contains 44598 households.

Survey for valuation of structure has been done in all 80 locations out of 126 locations as there is no legal title holder (LTH) in 46 locations. Number of LTH arrived at 5936 only which is very less. Hence submission of land documents has been extended to 08/04/2014 by conducting mini survey in a camp.

41522 numbers of photo identity card (PIC) distributed out of 44598. Rest of PIC could not be distributed due to either photo mismatch or refusal to take the same by public. Hence corrective actions have been taken to distribute the remaining PIC's.

2) Status of Land Acquisition

Acquisition of land in Bonjehmari (1300 Acres) and Gourangdih (2300 Acres) is under consideration of the West Bengal Govt. LA proposal has been submitted to LA Collector, Burdwan by ADDA.

Recently Namokesia mouza (26.00 Acres) at Salanpur Block which is non-coal bearing area and Bijaynagar Mouza (26.00 Acres) at Jamuria block where coal is available at more than 600 mtr depth, have been identified and are being examined for feasibility of rehabilitation of people from unstable location.

3) Diversion of Surface Infrastructure (Rail, Road and IOCL pipeline)

i) Diversion of Railway line from unstable location:

On the basis of geotechnical survey and a stability analysis of the working below the Andal-Sainthia Railway line of Pandaveswar Area, M/s CIMFR, Dhanbad had suggested for blind backfilling method to stabilize the working for 5-6 years. But no proven agency for doing the job of blind backfilling is known to both M/s CIMFR and ECL. Hence, High Powered Central Committee suggested for regular monitoring of the track line for any symptom of subsidence and also minimizing the speed of the train at this location.

With regard to diversion of Andal-Sitarampur Railway line of Salanpur Area, the work has been awarded to M/s RITES for preparation of Feasibility Study Report (FSR) and Detailed Project Report (DPR).

ii) Diversion of NH-2 and District Board (DB) Road:

For diversion of National Highway (NH-2), NHAI, Durgapur has been requested to prepare DPR.Joint inspection by NHAI and ECL officials was conducted on 06.03.2014.

For diversion of DB road at Salanpur Area, the work for preparation of DPR including construction of culverts / bridges and drains etc. for Mohanpur road (1.8 km approx.) and Gourangdih-Begunia Road (0.72 km approx.) has been awarded to M/s Webcon Consulting (India) Limited, Kolkata on 25.02.2014.

Regarding another diversion of DB Road at Satgram Area, notice inviting EOI has been fl oated for preparation of DPR which will be opened on 16.5.2014.

iii) Diversion of IOCL pipeline:

For diversion of Indian Oil Corporation Limited (IOCL) pipeline, National Institute of Rock Mechanics (NIRM), Bangalore has conducted survey work to assess the stability of pipeline. After receiving the NIRM survey report, ECL submitted its comments on 28.11.2013 to IOCL for further action.

B. For Jharia Coalf elds:

a) Demographic (socio-economic) Survey 595 of fire affected / subsidence prone sites / areas are required to be surveyed. CIMFR, ISM and Whiz Mantra have completed demographic / socio- economic survey at 425 sites in which 54061 families have been identified.

b) Status of land acquisition by JRDA for rehabilitation sites

About 1105 ha. of land would be acquired for resettlement of non-BCCL families. Proposals for acquisition of 439.19 acres of Raiyati land and 133.96 acres Govt. land has been processed by JRDA. Possession of 163.86 acres Raiyati and Govt. land has been taken over by JRDA. NoC for 86.44 acres of land in Bhuli Township and 849.68 acres non-coal bearing land in and around Belgoria Township, belonging to BCCL, have been given by MoC for transferring to JRDA.

JRDA has acquired 120.8 acres of land in 2013 at Lipania mouza but physical possession of land is yet to be taken by JRDA.

c) Diversion of Road from f re affected areas

Road Construction Department (RCD), Govt. of Jharkhand has completed the job of repairing/ widening of Mahuda-Topchanchi road in the endangered portion of NH-32 between Godhar to Putki. BCCL has taken up the matter with NH authority to take up the matter with JRDA for handing over the affected portion of NH-32 for extinguishing the fire.

DPR for construction of road from Joraphatak to Dhokra for connectivity of Belgoria Township was forwarded to RCD, Govt. of Jharkhand by JRDA for technical sanction. Approval from RCD is awaited.

d) Diversion of Rail from f re affected areas

RITES had submitted discussion plan on the above subject to JRDA. BCCL's observations had been sent to JRDA. In this regard, E.C. Railway, Hazipur and S.E. Railway, Kolkata had also forwarded brief report along with their comments to Railway Board, New Delhi.

On the otherhand, directions have been issued to RITES Ltd. by JRDA for traffic survey data collection and to initiate feasibility study regarding Diversion of Railway lines from fire affected and subsidence prone areas.

The matter was discussed in the 3rd IMC (Inter- Ministerial Committee meeting) held at Railway Board on 16.09.2013 at New Delhi. Short term and long term measures were suggested to tackle the issue. Detailed survey needs to be done to ascertain the feasibility of shifting and relocating the railway facility.

e) Utility Services from f re affected areas

Feasibility Report for diversion of utility services of Jharia Coalfield has been submitted by RITES Ltd. on 30.03.2013. BCCL has asked RITES on 6/2/2014 to clarify about shifting of existing utility services and clarification is awaited.

f) Service Building and Welfare Programme

Construction of service buildings like Market Complex, Bank, Post Office, Computer and Sewing Training Centre has been completed and construction of Masjid, Temple etc. are at different stages of completion.

g) Status of BCCL houses under the Master Plan

Construction of 344 houses at Bhuli, Bhimkanali, Nichitpur and Katras Coal Dump in triple storied blocks has been completed in non-coal bearing zone. 1152 triple storied quarters (96 blocks each of 12 units) are constructed at various places in non- coal bearing zone. Shifting of BCCL employees is in progress.

Construction of 4080 triple storied quarters (340 blocks each of 12 units) is in progress at a cost of Rs. 165.56 Crores. The work is expected to be completed by 06.11.2014.

Construction of 4020 triple storied quarters (335 blocks each of 12 units) is in progress at a cost of Rs. 286.39 crores. Work has been started and is in various stages of construction. It is expected that the work shall be completed as per scheduled date i.e. 31.5.2016.

The Board of Directors of BCCL has approved construction of 2240 nos. B, C and D typed quarters for shifting of persons affected by fire and subsidence at a cost of Rs. 428.40 crores. Letter of intent will be issued shortly.

h) Status of Non-BCCL houses (54159 nos.) under the Master Plan 2352 houses have been constructed in Belgoria rehabilitation Township "Jharia Vihar" and 1165 families have shifted till 31.03.2014. 1162 affected families were given Rs. 10,000/- each as shifting allowance.

i) Status of Fire Schemes

Under Master Plan, 28 nos. of Fire schemes have been proposed in Phase-I to be formulated / prepared for dealing with 67 fires sites spread over 41 collieries. Till date, 11 fire schemes have been approved by Board and implemented, out of which 4 schemes have been completed. Further, for expediting the fire dealing process, excavation methods has been resorted to by deploying Hired HEMM at various mines of BCCL.

j) Reduction in Fire Area

The coal mining operations in Jharia Coalfield have been continuing for more than 100 years by the erstwhile private owners. Due to un-scientific mining methods adopted by them, large areas of coal mines were subjected to mine fires and subsidence which had resulted in serious social and environmental problems in the area. At the time of the nationalization of coal mines in 1972-73 and taking over the mines by BCCL, the situation of mine fires was grave and fire had extended to about 9 sq.km. as assessed by a World Bank team.

At present, fire area has been reduced from 9 sq. km. to 2 sq.km. as per the satellite survey done by National Remote Sensing Centre, ISRO, Deptt. of Space, Hyderabad. This could be achieved only due to the successful 'excavation method i.e. digging out of fiery coal' adopted by BCCL. This fact has also been acknowledged by NRSC in their report. The coal mine fire survey / study was instituted by BCCL through National Remote Sensing Centre (NRSC), ISRO, Department of Space, Hyderabad in August, 2013 for delineation of surface coal fires in Jharia Coalfield. NRSC has submitted their report in March 2014, in which they have concluded that the present fire area in the coalfield is only 2 sq.km., which includes both over burden dump fire and active fire.

Further NRSC has planned another field study for ground truthing and GPR survey of subsidence/ unstable areas which is the 2nd component of study.

k) International Expression of Interest

Regarding latest technology for dealing with fire, International EOI has been fl oated by BCCL. No agency/company has responded for pre-EOI submission meeting held on 14.02.2014. BCCL is in the process of contacting different international experts in dealing fires directly. The EOI however, will be received up to 28.04.2014 and shall be opened on 29.04.2014.

Disbursement of total fund by CIL for implementation of Master Plan.

- To BCCL till March, 2014 : Rs. 376.09 crores

- To ECL till March, 2014 : Rs. 160.79 crores

16. ENVIRONMENTAL MANAGEMENT

16.1 Environmental Impact Assessment (EIA)/Environmental Management Plan (EMP)

EIA/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. EIA / EMPs for mines requiring renewal of lease and falling under violations are also prepared for environmental clearance. EIA / 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 26 Form-I and formulated 14 Draft EIA/EMPs. Environmental clearances were also obtained from MoEF for 18 projects / Group of Mines of CIL during the year.

16.2 Pollution Control Measures and their Efficacy

Measures are being taken to ensure that mining and coal beneficiation operations have minimum impact on the surrounding air quality, water quality, noise level and soil quality, hydro-geology, land use pattern and socio- economic profile of nearby population. The mitigation measures include dust suppression in mines through fixed and mobile water sprinklers. Effl uent treatment facilities for mine effl uent, workshop effl uent and CHP effl uent like oil and grease traps, sedimentation ponds and facilities for storage of treated water and its reuse have been provided for in all the major projects. Domestic wastewater treatment facilities have also been provided to deal with the domestic effl uent. The level of pollutants is being monitored on a routine basis to ascertain the efficacy of 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 pollution control measures and for taking corrective actions as required.

16.3 ISO 14001 Certif cation

The implementation, certification and recertification of different units of CIL under ISO 14001 (Environmental Management System) is continuing. During the year 2013- 14, 14 units and MCL got newly certified while 19 units and NCL got recertified. As on 31.03.2014, 73 units and two companies (MCL and NCL) are certified under ISO 14001 standards.

16.4 Monitoring of land reclamation of OC mines through remote sensing

CMPDI, through Coal India Limited, has introduced satellite surveillance system for land reclamation/restoration monitoring of all the opencast coal mines for compliance of MoEF stipulations as well as for progressive mine closure monitoring. Land reclamation monitoring of 50 opencast projects having more than 5 million cu.m. production capacity (Coal+OB) and 32 opencast projects having less than 5 million cu.m. production capacity (Coal + OB) based on high resolution satellite data have been completed during the year 2013-14.

Vegetation cover mapping of six coalfields viz. Jharia, Talcher, Bisrampur, Wardha Valley, Kamptee and Makum coalfields based on satellite data have been completed for assessing the regional impact of coal mining on land use / vegetation cover in the span of 3 years to take remedial measures required, if any.

16.5 R&R Policy of CIL

With a view to meet the changing aspirations of Project Affected Persons (PAPs) and to redress the unique problems of Subsidiary Companies for fast acquisition of land, Rehabilitation & Resettlement Policy of CIL was revised in 2012 making it a liberal and PAP friendly which provides multiple options to land losers and more fl exibility to Board of Subsidiary Companies in redressing the R&R issues.

The existing R&R policy provides for conducting baseline socio-economic survey to identify PAPs enlisted to receive R&R benefits as well as to formulate a viable and practical Rehabilitation Action Plan (RAP) for the affected persons in line with their entitlements. The RAP is to be formulated in consultation with PAPs and State Govt. and should also address implementation, monitoring and evaluation, dispute mechanism and Environment Impact Assessment (EIA)

The R&R policy of Coal India Ltd., while emphasizing the need to cultivate and maintain a good relationship with the people affected by Coal India's projects and realizing its responsibility towards the land oustees whose livelihood is often taken away, apart from other things, provides for payment of land compensation and solatium, employment or lump sum monetary compensation and annuity, compensation for homestead, lump sum payment in lieu of alternate house-site, subsistence allowance to each affected displaced family.

16.6 Mine Closure Plans

In terms of revised guidelines issued by the Ministry of Coal (MoC) in 2013, CMPDI has prepared 257 mine closure plans (93 are new and 164 are revised based on the latest new guidelines dated 7th Jan'2013) for CIL mines during the year. Quick comments on 42 mine closure plans for coal blocks sent by MOC were also prepared.

17 COAL BED METHANE (CBM) / COAL MINE METHANE (CMM)

17.1 Collaborative development of CBM prospects in Jharia and Raniganj coalf elds by consortium of CIL and 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 commercial development of coalbed methane. These projects are being implemented by CMPDI on behalf of CIL.

17.1.1 Jharia CBM Block

The Govt. of Jharkhand has granted Petroleum Exploration License (PEL) to the consortium of CIL-ONGC in August 2003 for Jharia CBM block after which the work as detailed in the Minimum Work Programme was taken up.

CMPDI has carried out deep slimhole drilling (depth range 1000 to 1400m) wherein CBM related parametric data were generated. A report based on this drilling, other available drilling and gas related data has been prepared by CMPDI and submitted to ONGC which facilitated ONGC to drill exploratory and pilot wells.

Consequent to the completion of envisaged work in the exploratory and pilot phases, consortium of CIL and ONGC has submitted a development plan of the block having a budgetary outlay of Rs. 1137 crores for the approval of the Government. The development plan was deliberated in the Steering committee meeting and government approval has been accorded vide letter no. DGH/CBM/MoPN&G/ ONGC/2013 dated 2nd July, 2013.

Further, CIL had conveyed to ONGC about its intention of increasing its Participating Interest (PI) from existing 10% to 26% from Development Phase onwards for this block in pursuance to the decision of CIL Board. The matter regarding operationalization issues and future course of action was deliberated by CIL Board wherein it was observed that there was a lack of transparency from ONGC for sharing information and the Board directed CIL to withdraw from Joint Operations.

17.1.2 Raniganj CBM Block

The Govt. of West Bengal has granted Petroleum Exploration License (PEL) for Raniganj CBM block in April 2004 after which the work as detailed in the Minimum Work Programme was taken up.

CMPDI has carried out deep slimhole drilling (depth range 800 to 1100m) wherein CBM related parametric data were generated. A report based on this drilling, other available drilling and gas related data has been prepared by CMPDI and submitted to ONGC which facilitated ONGC to drill exploratory and pilot wells.

Consequent to the completion of envisaged work in the exploratory and pilot phases, consortium of CIL and ONGC has submitted a development plan of the block having a budgetary outlay of Rs. 957 crores for the approval of Government. The development plan was deliberated in the Steering committee meeting and government approval has been accorded vide letter no. DGH/CBM/MoPN&G/ ONGC/2013 dated 2nd July, 2013.

Further, CIL has conveyed to ONGC about its intention of retaining 26% Participating Interest (PI) in this block from Development phase onward in pursuance to the decision of CIL Board. The matter regarding operationalization issues and future course of action was deliberated by CIL Board wherein it was observed that there was a lack of transparency from ONGC for sharing information and the Board directed CIL to withdraw from Joint Operations.

17.2 CBM and Shale gas related studies under Promotional Exploration during XII Plan

17.2.1 CBM related studies:

CMPDI is carrying out studies related to 'Assessment of Coalbed Methane Gas-in-Place Resource of Indian Coalfields/Lignite fields' through boreholes being drilled under promotional exploration (XII Plan period) under PRE(Promotional Regional Exploration) funding of Ministry of Coal. This study will enlarge the CBM resource base in the country and facilitate delineation of more blocks for CBM development. A total of 60 boreholes (40 by CMPDI and 20 by GSI) are to be taken up for studies during the XII Plan Period with a total plan expenditure of Rs. 13.46 crores.

During 2013-14, 8 boreholes located in different coal/lignite fields were taken up for studies by CMPDI.

Three reports based on CBM related studies viz. 'Assessment of CBM Gas-in-Place Resource in Saktigarh block, Pathakhera Coalfield; Nachchiyarkudi block, Mannargudi Lignitefield (TN) Banai block and Mand- Raigarh Coalfield' were submitted during 2013-14. A total of fourteen reports have been submitted since April, 2007.

17.2.2 Shale gas related studies

CMPDI is carrying out studies related to 'Assessment of Shale Gas-in-Place Resource of Indian Coalfields/Lignite fields' through boreholes being drilled under promotional exploration (XII Plan period) under PRE funding of Ministry of Coal. This study will create the data for assessment of shale gas potentiality and facilitate delineation of more blocks for shale gas development. A total of 25 boreholes are to be taken up for studies during the XII Plan Period with a total plan expenditure of Rs. 7.75 crores. During 2013-14, a total of 6 boreholes were taken up for shale gas related studies.

17.2.3 Activities taken up by CBM Lab

CBM Lab established at CMPDI has enhanced its capacity and added facility of TOC equipment for shale gas potentiality assessment. The instrument "Rock Eval Analyszer" required for assessing shale gas prospectivity for which supply order has been placed and procurement of the instrument "Automatic Porosimeter cum Permeameter" is under process.

CBM Lab has carried out the field desorption studies at the borehole sites in 8 boreholes during 2013-14 and has generated total gas content and gas composition data. In addition, studies have been carried out in 6 boreholes for assessment of shale gas potentiality.

CBM lab has carried out Adsorption Isotherm (AI) test for 20 samples (17 Coal and 3 Shale) during 2013-14 through in-house facility created in CMPDI in addition to carrying out Total Organic Carbon (TOC) analysis on 110 shale samples. Analysis of 913 mine air samples received from different collieries of CCL was also carried out and the results have been submitted.

17.3 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 Demonstration Project at Moonidih mine of BCCL has already proved the efficacy of the process and five more suitable areas within CIL mining leasehold areas were identified. Further, MoC has made CMPDI the Nodal Agency for development of CMM in India.

Under the aforesaid background, actions for commercial development were initiated and on behalf of CIL/concerned Coal Company's consent, CMPDI had fl oated Global Tender for selection of suitable Developer for commercial development of CMM in 5 identified blocks (3 in BCCL and 2 in CCL) in April 2011 which could not be proceeded further in view of certain issues regarding mechanism of operationalization raised by MoP&NG. To resolve the issues, the matter was deliberated at competent level of MoC and MoP&NG and it was resolved.

CCEA has granted its approval in December 2013 allowing CIL to explore and exploit CMM from its coal mining areas. A formal communication in this regard is awaited after which further activities will be undertaken by CMPDI/CIL for development and exploitation of CMM.

17.4 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 November'2008. The clearinghouse is functioning as the nodal agency for collection and sharing of information on CMM/CBM related data of the country and help in the commercial development of CMM Projects in India by public/private participation, technological collaboration and bringing financial investment opportunities.

The clearinghouse has been established with financial support from Coal India Ltd. on behalf of Ministry of Coal and US EPA. The 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. After completion of the initial 3 years term in Nov.'2011, US EPA grant has been extended for additional 3 years on approval of Ministry of Coal.

Under the aegis of India CMM/CBM Clearinghouse, an international workshop on 'Development of Coal based Non-conventional Energy Resources in India' has been organized on 12th - 13th November, 2013 at CMPDI, Ranchi. It was well attended by the international dignitaries, international experts, high level Government functionaries from Ministry of Coal, Ministry of Petroleum & Natural Gas, captains of coal industries, CBM operators, and representatives of technical and research institutions.

18 COMMERCIAL DEVELOPMENT OF UNDERGROUND COAL GASIFICATION (UCG) WITHIN CIL COMMAND AREA

CMPDI has invited on-line bids on 20th January, 2014 for e-Tendering portal https://coalindiatenders.gov.in for Selection of 'Developer for Commercial Development of Underground Coal Gasification (UCG)' in Kaitha Block of Central Coalfields Limited (CCL) and Thesgora "C" Block of Western Coalfields Limited (WCL). Five firms participated in the pre-bid meeting held on 3rd February'2014. The due date for submission of offer has been extended from 10th March'2014 to 17th April, 2014.

19 DELINEATION AND PREPARATION OF DATA-DOSSIERS FOR DGH

19.1 Preparation of Data Dossiers for CBM Round V

DGH had awarded consultancy work of delineation and preparation of Data Dossiers on prospective CBM blocks in Cambay basin, Singrauli and Johilla Coalfields for forthcoming CBM Round to CMPDI in May 2011. Final Data Dossiers on identified 8 blocks were submitted to DGH.

19.2 Delineation and preparation of Data-dossiers for six prospective Shale gas blocks within Gondwana Basin DGH had assigned consultancy work of delineation and preparation of Data Dossiers for six prospective Shale Gas blocks within Gondwana Basin to CMPDI in May, 2011. Final Data Dossiers on Raniganj, Jharia, Bokaro, South Karanpura, North Karanpura and Sohagpur basins were submitted to DGH.

20 R&D AND S&T PROJECTS

20.1 EU Funded Research Project

CMPDI is one of the participating organizations along with IIT Kharagpur from India in the multi-national/multi- organization collaborative project titled 'Greenhouse Gas Recovery from Coal Mines and unmineable Coal beds and Conservation of Energy (GHG2E)' which has been approved under the partial funding scheme of European Union Research Commission. The balance fund has been provided under CIL R&D scheme. The project aims at studies and modelling of recovery of coal mine methane and its utilization as clean energy.

The work has been taken up and the assigned CMPDI work packages were submitted to Imperial College of Mining in January 2013 as per schedule. Presentation for progress review and Project workshop scheduled from 10th–14th June' 2013 at Slovenia were sent to Project Coordinator. The Project coordinator along with the team reviewed the progress at CMPDI on 13th November'2013 and visited Moonidih mine on 14th November 2013 to finalise data acquisition sites and draw action plan to generate samples. A review meeting was held with IIT Kharagpur at CMPDI on 24th January 2014. CMPDI is pursuing its assigned tasks as a collaborative partner and efforts made by CMPDI were appreciated.

20.2 CIL R&D Project 'Assessment of prospect of shale gas in Gondwana basin with specif c reference to CIL areas' Work on CIL R&D project titled 'Assessment of prospects of shale gas in Gondwana basin with special reference to CIL areas' is in progress. Areas have been demarcated for assessing the prospectivity of Shale gas within BCCL and CCL areas. Collection of shale samples for qualitative analysis has been done and generation of suite of parametric data for assessment of Shale gas potentiality in identified areas of BCCL and CCL command areas have been completed. Facility for taking up Total Organic Carbon (TOC) Analysis has been created in CMPDI lab, procurement of "Rock Eval Analyszer" finalized and supply order issued to M/s Vinci Technologies of France. Sub- implementing agency ARI (USA) has submitted the report on creation of type of well and simulation for assessment of Shale gas potentiality in delineated areas. Finalization of report is in progress.

20.3 CIL R&D project titled 'Studies on shrinkage swelling characteristics of some Indian coals to ascertain recoverability of CBM from deep seated coal resources'.

Work on CIL R&D project titled 'Studies on shrinkage swelling characteristics of some Indian coals to ascertain recoverability of CBM from deep seated coal resources' is in progress. Design and fabrication of the instrument is under progress at IIT Kharagpur. Design of Sample Cell and Experimental Cell completed and report submitted on 27th January, 2014 as per schedule. Procurement of High Pressure fittings and testing of instrument is under progress at IIT Kharagpur.

20.4 S&T Project on 'Shale gas potentiality evaluation of Damodar basin of India'

A S&T project on 'Shale gas potentiality of Damodar basin of India' at an investment of Rs. 16.87 crores under S&T plan of Ministry of Coal (MoC) is under implementation with an objective to evaluate Damodar basin for their shale gas potentiality through integrated geophysical, geological, geo-chemical and petro-physical investigations, as per schedule. The instrument 'Automatic Porosimeter cum Permeameter' is under procurement.

20.5 S&T Project on 'CBM reserve estimation for Indian coalf elds'

A S&T project on 'CBM Reserve estimation for Indian coalfields' at a cost of Rs. 20.70 crores has been approved under EoI of Coal S&T project. The project is of 3 years duration with effect from 24th March, 2014. Action has been initiated as per the approved project proposal.

21 GEOLOGICAL EXPLORATION & DRILLING

CMPDI continued to carry out coal exploration activities in 2013-14 also, mainly in CIL and Non-CIL/Captive Mining blocks. Exploration in CIL blocks was taken up to cater to 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 & XII Plan periods. As against the achievement of 2.09 lakh metres in 2007-08, CMPDI has achieved 5.63 lakh metres in 2012-13 and 6.97 lakh metres in 2013- 14 (24% growth) through departmental and outsourcing resources. For capacity expansion through modernization of departmental drills, 39 new Mechanical drills and 4 Hi- Tech Hydrostatic drills have been procured since 2008- 09, out of which 10 have been deployed as additional drills and 33 as replacement drills. CMPDI has also replaced 38 mud pumps and 74 trucks during the last six years.

To meet the increased work load, recruitment has been taken up through campus interview/open examination. 201 Geologists, 26 Geo-Physicists and 20 Mechanical Engineers for Drilling were inducted in CMPDI since 2008- 09. About 343 non-executive staffs have also been inducted for exploration work. 25 Geologists, 2 Geo-Physicists, 5 Mechanical Engineers and 11 non-executives have resigned.

Under outsourcing, the work of 40 blocks involving 14.78 lakh metre of drilling was awarded through tendering since 2008-09, out of which drilling has been concluded in 18 blocks. Due to local (law and order) problems, work could not start in 2 blocks and stopped in 6 running blocks. Due to non-availability of forest clearance, work is stopped in 7 blocks. Due to lack of forest clearance and adverse law and order, about 2.14 lakh metre of drilling could not be carried out in outsourced blocks in 2013-14. In 2013-14, a total of 3.71 lakh metre (30% growth) has been drilled through outsourcing, which consist of 1.95 lakh metre through tendering and 1.71 lakh metre through MoU with MECL.

21.1 Drilling Performance in 2013-14

CMPDI deployed its departmental resources for detailed exploration of CIL/Non-CIL blocks whereas State Govts. of MP and Odisha deployed resources in CIL blocks only. Besides, eight other contractual agencies have also deployed resources for detailed drilling/exploration in CIL/ Non-CIL blocks. A total of 120 to 140 drills were deployed in 2013-14 out of which 57 were departmental drills.

Apart from it, CMPDI continued the technical supervision of Promotional Exploration work undertaken by MECL in Coal Sector (CIL and SCCL areas) in 9 blocks, GSI in 11 blocks and DGM (Nagaland) and DGM (Assam) in 1 block each for Promotional Exploration in Coal Sector on behalf of MoC. A total of 1.32 lakh metre of promotional drilling has been carried out in Coal (0.63 lakh metre) and Lignite (0.69 lakh metre).

In 2013-14, CMPDI and its contractual agencies took up exploratory drilling in 100 blocks/mines of 22 coalfields situated in 5 States. Out of 100 blocks/mines, 26 were Non- CIL/Captive blocks and 74 CIL blocks/mines. Departmental drills of CMPDI took up exploratory drilling in 53 blocks/ mines whereas contractual agencies drilled in 47 blocks/ mines.

The overall performance of exploratory drilling in 2013-14 is given below:

Performance of Exploratory Drilling in 2013-14 Achieved Target Previous Year: 2013-14 Achieved Achieved +/- 2012-13 Growth Agency (metre) (metre) (%) (m) (m) %

A. Detailed Drilling Undertaken by CMPDI :

I. Depart -mental 285000 325362 114% 40362 276199 18%

II. Outsourcing

State Govts. 9000 5943 66% -3057 7398 -20%

MECL (MOU) 185000 171006 92% -13994 138761 23%

Tendering (CIL blocks) 242000 156359 65% -85641 90779 72%

Tendering (non-CIL blocks) 179000 38171 21% -140829 49772 -23%

Total Outsour -cing 615000 371479 60% -243521 286710 30%

Total A 900000 696841* 77% -203159 562909 24%

B. Promotional Drilling in Coal Sector by MECL, GSI, DGM (Nagaland) and DGM (Assam):

GSI 14500 15589 108% 1089 14702 6%

MECL 69500 46753 67% -22747 30594 53%

DGM, Nagaland 700 783 112% 83 328 139%

DGM, Assam 300 123 41% -177 0 123%

CMPDI 4000 0 0% -4000 0 -

Total B 89000 63248 71% -25752 45624 39%

* In 2013-14, 4.59 lakh metre has been drilled in CIL blocks and 2.38 lakh metre in Non-CIL blocks.

In 2013-14, CMPDI achieved its departmental and overall drilling targets by 114% and 77%, respectively. The performance of departmental drilling was better than previous year with 18% growth and recorded an average operational drills productivity of 487 metre/drill/month. Non-availability of permission to explore in forest areas and local problems (law and order) has affected the performance of outsourced drilling. MECL could not achieve the targets of Promotional drilling in coal sector due to forest problems and CMPDI could not undertake promotional drilling due to priority in detailed drilling.

21.2 Geological Reports:

In 2013-14, 15 Geological Reports were prepared on the basis of detailed exploration conducted in previous years. In addition, 8 Revised Geological Reports were also prepared. The prepared Geological

Reports have brought about 2.5 Billion Tonnes of additional coal resources under 'Proved' category.

Under Promotional Exploration Programme, GSI and MECL have submitted 4 Geological Reports on coal blocks, estimating about 1.77 Billion Tonnes of coal resources, in 'Indicated' and Inferred categories, above specified thickness.

22 OUTSIDE-CIL CONSULTANCY SERVICES

During the year 2013-14, 29 consultancy jobs were done for 20 organizations outside CIL. Some of the major clients/organisations for whom jobs were completed are Neyveli Lignite Corporation Limited, MOIL Limited, National Thermal Power Corporation, Steel Authority of India Limited, National Aluminium Company Limited, Jindal Steel & Power Limited, Singareni Collieries Company Limited, Damodar Valley Corporation, etc.

Presently, 28 outside-CIL consultancy jobs are in hand for 18 organizations like MOIL Limited, Odisha Industrial Infrastructure Development Corporation (IDCO), National Thermal Power Corporation, Odisha Mining Corporation Limited, Odisha Power Generation Corporation Limited, Baitarani West Coal Company Limited, Neyveli Lignite Corporation Limited, Hindustan Copper Limited, Damodar Valley Corporation, Karnataka Power Corporation Limited, etc.

During the year 2013-14, 36 outside-CIL consultancy jobs worth Rs. 23.35 crores from 20 organizations were received by CMPDI.

23 RESEARCH & DEVELOPMENT PROJECTS

23.1 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, among others. The main functions of SSRC are to plan, programme, budget and oversee the implementations of research projects and seek application of the findings of the R&D work done.

The SSRC is assisted by a Technical sub-committee headed by CMD, CMPDI. The committee deals with research proposals related to coal exploration, mining, mine safety, coal beneficiation and 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 31.3.2014) - 380

Total no. of S&T projects completed (till 31.3.2014) - 310

23.2 Physical performance

During 2013-14, a total of 5 projects have been completed by various agencies. The status of Coal S&T projects during 2013-14 is as under:

i) Projects on-going as on 1.4.2013 15

ii) Projects sanctioned during 2013-14 02

iii) Projects completed during 2013-14 05

iv) Projects on-going as on 1.4.2014 12

Following Coal S&T projects were completed during 2013-14:

1. Integrated communication system to communicate and locate trapped underground miners.

2. Design and development of coal winnowing system for dry beneficiation of coal based on CFD modelling and simulation.

3. Development of methodology for estimation of Greenhouse Gas emissions in mine fire areas and their mitigation through terrestrial sequestration.

4. Development of tribo-electrostatic separator for beneficiation of high ash Indian coking coals.

5. An approach to explore the applicability of spectrometry as a tool for assessment of coal quality.

23.3 Financial status

Budget provision vis-à-vis actual fund disbursement during the period is given below:

(Rs. in crores)

2012-13 2013-14

RE Actual RE Actual

11.40 11.53 11.65 11.76

23.4 CIL R&D Projects

For in-house R&D work of CIL, R&D Board headed by Chairman, CIL is also functioning. CMPDI acts as the Nodal Agency for processing the proposals for CIL approval, preparation of budget estimates, disbursement of fund, monitoring the progress of implementation of the projects, etc.

In order to enhance R&D base in command areas of CIL, CIL Board in its meeting held on 24th March 2008 had delegated substantial powers to CIL R&D Board and the Apex Committee of the R&D Board. The Apex Committee is empowered to sanction individual R&D project upto Rs. 5.0 crores value with a limit of Rs. 25.0 crores per annum considering all the projects together and CIL R&D Board is empowered to sanction individual R&D project upto Rs. 50.0 crores.

So far, 71 projects have been taken up under CIL R&D Board fund, out of which 48 projects have been completed till March, 2014.

The status of CIL R&D Board Projects during 2013-14 is as follows:

i) Projects on-going as on 1.4.2013 - 23

ii) Projects sanctioned during 2013-14 - 02

iii) Projects completed during 2013-14 - 07

iv) Projects on-going as on 1.4.2014 - 18

Following R&D projects were completed during 2013-14:

1. Analysis of in-situ stress for CBM exploration in Jharia Coalfield.

2. Effective utilization of low rank and low volatile high rank Indian coking coals for Blast Furnace (BF) coke making.

3. Assessment of performance of explosives/blast results based on explosive energy utilization.

4. Investigations of Bolt Behavior in Development and Depillaring Panels under Blast Induced Dynamic Loading.

5. Feasibility study of High Angle Conveying System (HAC) in Opencast Coal Mines by Computer Modelling and Simulation.

6. Investigation on augmentation of life of dump truck tyres through improvement of tyre re-treading compound and development of an optimum road maintenance management system-Phase-II.

7. Development of a notch cutting machine to facilitate construction of stoppings in underground coal mines.

The disbursement of funds for CIL R&D Projects during the year 2013-14 was Rs.10.97 crores.

24. TELECOMMUNICATION SYSTEM

In order to fulfill the vision of CIL to become a global player in the primary energy sector, the information and communication system of the organization plays a vital role to cope with the requirement keeping in view of each and every aspect of the business. CIL and its subsidiaries are concerned for putting continuous effort for up-dating the communication and IT solutions. To increase transparency, efficiency and optimal utilization of resources for customer and investor satisfaction, the following key initiations have been taken:

1. GPS based Operator Independent Truck Dispatch System (OITDS) with high speed Data and Voice communication is implemented and in the final stage of commissioning in all eleven Opencast projects to optimize operation of HEMM to enhance the production and productivity of the mine.

2. An ambitious plan to commission GPS/GPRS based vehicle Tracking System across all major mines of Coal India has been taken up.

3. E-auction of coal, E-procurement of goods and services are operational through service provider of CIL. E-payment to employee and vendors, E-filing of grievances are in operation to embark upon the business process through IT initiatives.

4. In order to improve coal dispatch, actions are being taken to connect all weighbridges with Central Server of respective subsidiaries. Connectivity to weighbridges of BCCL, SECL mines are in place while at other subsidiaries viz. ECL, CCL, MCL, etc, is in different stage of completion.

5. Corporate mail messaging system is in place and enhancement of mail messaging system to CIL and subsidiaries for ultimate capacity of 19400 users is under process to provide corporate mail for executives of CIL and subsidiaries.

6. Network infrastructure for better communication (Surface and Underground) for faster business process is continuously progressing with quick refund of coal value for un-lifted quantities and earnest money as per directives of MoC using state - of - art convergent technology.

7. In order to meet the demanding business process, state – of - art IP base EPABX with support of convergent technology for voice and data, Radio communication System and UG communication system at different locations of Coal India and its subsidiary companies are operational.

8. The dedicated Web Portal of Coal India has been established in English and Hindi with enhanced look and feel encompassing the features like Employee Portal, Tender publication, On-line grievance management, Investor center, Customer corner, Vigilance etc. The Portal also facilitates for receiving on-line applications for recruitment of MTs, link to E-procurement and e-auction.

9. Video conferencing between CIL, Subsidiaries and MoC for enhancement of decision making process for better production and productivity is under final stage of implementation through Multi Protocol Layered Switching (MPLS) links.

25. MINES SAFETY

Coal India Ltd has always given the highest priority towards "Safety". In CIL, safety is considered as a part of its core business process and is embedded in the mission statement. CIL has framed well defined Safety Policy and formed a multidisciplinary Internal Safety Organization (ISO) in every subsidiary company as well as at CIL (HQ) to monitor implementation of CIL's safety policy.

Accidents statistics is the indicator for safety status. Over the years, the safety performance in terms of accident in CIL has improved significantly.

25.1 This improvement in safety is attributed to the following contributing factors:

- Collective commitment and synergies shown by the management and employees.

- Use of state-of-the-art technology in the field of mining methods, machineries and safety monitoring mechanism.

- Continuous improvement in knowledge and skill of our workforce through imparting quality training and relentless safety awareness drives.

- Strong oversight and assistance from various quarters.

Salient features of continuous and sustained improvement in CIL's safety performance:

1. The 5 yearly average fatalities since the inception of CIL in the year 1975 have shown a reducing trend over a period of time as evident from the graph given below:

Note: Accident Statistics are maintained calendar year wise in conformity with DGMS and figures for the year 2013 are subject to reconciliation with DGMS

2. The 5 yearly average fatalities for the period 2010-13 have reduced by 66% compared to average fatalities during 1975-79.

3. The 5 yearly average serious injuries in CIL since its inception in the year 1975 upto 2013 have also shown a reducing trend over a period of time as is evident from the graph below:

4. The 5 yearly average serious injuries have reduced more sharply than fatalities in the same time frame. As figures of serious injuries are the precursor of fatal accidents and mine disaster, it is the indicator of improvement in safety standards of our mines as a whole.

Analysis of trend of Accident Statistics of CIL for the last 5 years is also indicating overall improvement in safety performance in CIL.

- Reducing trend of fatalities in CIL for the last 5 years

Details of Accident Statistics in 2013 vis-à-vis 2012:

During the year 2013, there were 54 fatal accidents and 58 fatalities in CIL mines compared to 57 and 60 respectively in 2012. Thus the numbers of fatal accidents and fatalities in 2013 compared to 2012 have reduced. The serious accidents and serious injuries for the year 2013 compared to 2012 have reduced significantly to 175 and 178 respectively from 212 and 219. These are the lowest serious accidents and serious injuries figures since the inception of CIL in 1975.

Overall: Accident Statistics for CIL in 2013 compared to 2012 are given below:

Sl. No. Parameters 2012 2013

1 Number of fatal accidents 57 54

2 Number of fatalities 60 58

3 Number of serious accidents 212 175

4 Number of serious injuries 219 178

5 Fatality Rate per million tonne of coal production 0.13 0.12

6 Fatality Rate per 3 lakhs manshift deployed 0.22 0.21

7 Serious injury Rate per million tonne of coal production 0.48 0.38

8 Serious injury Rate per 3 lakhs man shift deployed 0.79 0.64

25.2 Major Activities of Safety & Rescue Division of CIL:

1. Inspection of mine to review safety status & follow up action.

2. Prima-facie fact finding enquiry into fatal accident and major incidences such as mine fire, subsidence, in-rush of water, slope failure, explosion etc.

3. Organizing meeting of CIL Safety Board and monitoring recommendations / suggestions made during the meeting.

4. Organizing meeting of National Dust Prevention Committee (NDPC) and monitoring recommendations / suggestions of NDPC.

5. Framing of internal technical circulars / guidelines related to safety issues and monitoring implementation.

6. Maintenance of accidents / major incidents statistics in database.

7. Publication of Safety Bulletin for disseminating and sharing of knowledge in order to promote safety awareness and inculcate better safety culture.

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, CAG and VIPs.

9. Monitoring safety related R&D activities.

10. Imparting specialized training by SIMTARS accredited trainers to unit level and area level executives who are directly engaged in ensuring safety in mines.

25.3 Actions taken for improvement of safety in mines undertaken in 2013

To improve safety standard, CIL has vigorously pursued several measures in the year 2013 along with on-going safety related activities / initiatives apart from compliance of statutory requirements for safety which are given below:- - Continuous oversight of safety status of mines is being done through multi-disciplinary Internal Safety Organization (ISO).

- After analysis of fatal accidents which occurred at different point of time in 2013, several directives / guidelines on corrective measures to be taken for prevention of recurrence of similar type of accident in future are being issued from the Safety & Rescue Division of CIL.

- Stress on preparation and implementation of Risk As- sessment based on Safety Management Plan (SMP).

- A protocol for conducting safety audit by external independent agencies has been prepared to bring uniformity and efficiency in mine safety audit.

26. 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.

27. Safety Monitoring Agencies in CIL: Apart from statutory monitoring by DGMS, the status of safety is being monitored at various levels by the following agencies:

Level Monitored By Mine level 1. Workman inspectors: as per Mines Rule- 1955

2. Pit Safety Committee: constituted as per Mines Rule-1955

Area level 1. Bipartite/Tripartite Committee Meeting 2. Safety Officers' Coordination Meeting

Subsidiary HQ 1. Bipartite/Tripartite Committee Meeting at level HQ level

2. Area Safety Officers' Coordination Meeting

3. Inspections by ISO Officials

CIL HQ: 1. CIL Safety Board

Corporate 2. CMD's meet

Level 3. Director (Tech)'s Coordination Meeting

Ministry of Coal 1. Standing Committee on Safety in Coal (MOC) / Other Mines

Ministries Level 2. National Conference on Safety in mines 3. Various Parliamentary Standing Committees

28. HUMAN RESOURCE DEVELOPMENT

The Company has made optimum utilization of resources and technology and also used advanced methods and technology for the enhancement of efficiency and productivity in the company. HRD has been developing new techniques and opportunities for employee's self development which in turn proved to be favorable for the company as a whole.

28.1 Overall Performance

In CIL and its subsidiaries, 93825 employees have been trained during 2013-14 out of which 20502 were executives and 73323 were non-executives. These training programmes included in-house training (training at subsidiary training centres and also at IICM), training in other reputed institutes outside the Company and training abroad.

28.2 Trainings

i) In-house Training

The in-house training programmes were organized at subsidiary HQs, 27 Training Centers and also 102 VT Centers across Coal India and also at IICM. HRD Division of subsidiaries organized these trainings after assessing the training need in the respective category of employees within the subsidiary. Special attention was given for improving the skill of the employees keeping in mind the needs of the Industry. Details of in-house training imparted are listed below:-

Short Workshop/ Training Training Seminar Total

Executives 7135 8273 1211 16619

ii) Training Outside Company (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:-

Short Workshop/ Training Training Seminar Total

Executives 1363 1428 970 3761

Non- executives 642 85 29 756

Total 2005 1513 999 4517

iii) Training Abroad

Coal India has deputed 122 executives to different countries from its subsidiary and HQ during the year 2013-14 for Training, Workshops / Seminars / Conferences as per the details given below:-

Training Workshops / Seminars / Total Conferences

Executives 57 65 122

28.3 Initiatives

- CIL has been recruiting fresh and dynamic young talents in different disciplines for the last few years. Special attention has been given to groom these young and energetic persons in their respective fields throughout the year. In addition to the introductory concept on Coal Industry, they have been trained on basic Management Techniques (MAP) and also in their respective Technical fields (TAP) through regular courses organized by IICM with reputed faculties. Special attention has also been given in tuning them in their respective specialized working areas by on- the-job training throughout the year. Their probation is closed after appearing for the examination at the end of the year successfully.

- As MTs of Excavation and E&M disciplines are posted in different Coal Mines, to provide them proper exposure to Mining Operations as well as Mining Equipments (both surface and underground) and to make them conversant with the Mining activities, 5 weeks of intensive training in different batches for a total of 253 MTs was organized at

Indian School of Mines, Dhanbad, the Premier Mining Institute of our country during the year 2013-14.

- Special training modules as per the need of our industry have been designed and tie-ups were done with IIM, Lucknow and ASCI, Hyderabad to train our middle level (E4- E7) executives on Management Development Programmes at their campuses w.e.f. 1st April, 2014.

- Similarly tie-up was made with IIM, Calcutta to train about 150 General Managers (E8) of different disciplines on Advance Management including overseas learning w.e.f. 4th May, 2014.

- 5 senior executives were sent to Japan to attend a 8-day training programme on 'Coal Preparation'.

- 2 middle level executives were sent to China to attend a 20- day training programme on 'Fully Mechanized Coal Mining Technology- 2013'.

- 495 executives have been given certified training in Project Management at IICM and other renowned institutes.

- 72 executives have been given certified training in Contract Management at IICM and other reputed institutes.

During FY 2013-14, Coal India Limited had inducted fresh talent into the organization at entry level as Management Trainees. 1141 Management trainees inducted in various technical and non- technical disciplines through open advertisement recruitment and 604 selections made through campus from various institutions of repute. Out of these campus selections 455 Management Trainees would be joining the Company in July- Aug 2014 upon completion of their courses. Coal India Limited has also advertised for 339 posts of MTs in March 2014 for the newly created Community Development discipline besides Environment, Sales & Marketing, Personnel, Materials Management and Finance disciplines. This process is likely to conclude by October 2014. Additionally, the Company has recruited 125 Specialist doctors and recruitment of 192 General duty doctors is at the concluding stage. At Lateral level 05 Ex- servicemen who have undergone Business Management Courses at IIMs have been recruited through campus selection and posted at different subsidiary companies. Apart from this, the Company has also inducted 190 persons in executive cadre from its existing pool of employees of non-executive cadre through selection/ promotion.

29. MANPOWER

29.1 The total manpower of the Company including its subsidiaries as on 31.03.2014 is 3,46,638 as against 3,57,926 as on 31.03.2013. The subsidiary company-wise position of manpower is as given below:-

Company As on Total 31.03.2014 71826 ECL

31.03.2013 74276

31.03.2014 58960 BCCL

31.03.2013 61698

31.03.2014 46686

CCL

31.03.2013 48126

31.03.2014 52484

WCL

31.03.2013 54960

31.03.2014 70910

SECL

31.03.2013 73718

31.03.2014 22278

MCL

31.03.2013 22065

31.03.2014 16741

NCL

31.03.2013 16073

31.03.2014 2199

NEC

31.03.2013 2376

31.03.2014 3135

CMPDIL

31.03.2013 3142

31.03.2014 512

DCC

31.03.2013 551

31.03.2014 907

CIL(HQ) 31.03.2013 941

31.03.2014 346638

Total (CIL as a whole)

31.03.2013 357926

29.2 The presidential directives for Scheduled Castes/Scheduled Tribes/OBCs have been implemented in all the subsidiaries/ units of Coal India Limited.

The representation of SC/ST employees in the total manpower of CIL and its Subsidiary Companies as on 01.01.2012, 01.01.2013 and 01.01.2014 is given below:-

Scheduled Castes Scheduled Tribes Total As on Manpower Nos. Percentage Nos. Percentage

1.1.2012 374650 77885 20.79 45424 12.12

1.1.2013 361348 74780 20.69 43342 11.99

1.1.2014 350188 72957 20.83 42049 12.01

30. INDUSTRIAL RELATIONS AND EMPLOYEES' PARTICIPATION IN MANAGEMENT

The Industrial Relations scenario in CIL and its subsidiaries during the financial year remained cordial. JCCs and different Bipartite Committees at Units / Area levels / Subsidiary (HQ) levels continued to function normally. Meetings of the Standardisation Committee were held at regular intervals at CIL.

Strikes and Bandhs

The Company-wise details of strikes, mandays lost, production lost and other incidents are furnished in the following table:-

STRIKES AND BANDHS

Company No. Of Strikes/Bandhs No. Of other incidents

2012-13 2013-14 2012-13 2013-14

ECL 2+1 1+0 6 24

BCCL 2+1 1+0 7 1

CCL 2+1 1+0 61 41

WCL 2+1 1+0 2 0

SECL 2+1 1+0 0 0

NCL 2+1 1+0 12 0

MCL 2+1 1+0 0 0

NEC 2+1 1+0 0 0

CMPDI 2+1 1+0 0 0

CIL 2+1 1+0 0 0

Total 2+1 1+0 88 66



Company Production Loss Mandays lost (per tonne)

2012-13 2013-14 2012-13 2013-14

ECL 27427 2166 24100 35000

BCCL 7557 2057 19700 1453

CCL 4165 2236 00 00

WCL 40366 2756 201800 9700

SECL 56571 2942 239000 00

NCL 1769 271 73500 00

MCL 1617 1906 00 00

NEC 198 106 00 00

CMPDI 677 778 00 00

CIL 60 206 00 00

Total 140407 15424 558100 46153

Bandh- Nil

Strike – Strike call given by Coal Mines Officers Association of India (CMOAI), majority of the executives remained on strike on 13-3-2014 in CIL and Subsidiaries

31. EMPLOYEES' WELFARE AND SOCIAL SECURITY SCHEMES

EMPLOYEE WELFARE

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, sports and cultural facilities etc.

1) Structured Sports Policy of CIL and its subsidiaries, Memorandum of Association and Regulation and Registration under West Bengal Societies Registration Act 1961.

Coal India Sports Promotion Association (CISPA) has been registered under West Bengal Societies Registration Act 1961.

The structured sports policy was formulated and approved by the CIL Board. The objectives of the policy are as under:- a) To formulate the policy for promoting excellence in sports at State, National/International level and use these efforts as a vehicle to enhance the image of such sports persons as Brand Ambassador.

b) To promote, develop and control various Sports/ Recreational/Cultural activities and to foster spirit of sportsmanship and solidarity among the employees of Coal India and its subsidiaries.

c) To advise and assist in the improvement and construction of sports academies / grounds / clubs / auditoriums and to allocate funds for various Sports Activities within Coal India and its subsidiaries.

d) To conduct and support various sports meets and other sports activities within CIL and its subsidiaries as well as outside the Company, either by sponsoring such activities or by inviting outstanding sports persons to participate in Coal India Team.

e) To affiliate itself to National Sports Federations/Associations and other appropriate institutions in sporting/recreational/ cultural activities and to act as a Central Body.

f) To recommend recruitment of young, promising and outstanding sportspersons and with regard to promotion of existing reputed players associated with CIL and its subsidiary companies.

g) To raise national level teams in identified games through scientific coaching, providing state-of-the-art equipment and infrastructure.

h) To generate corporate goodwill and brand equity by sponsoring / co-sponsoring various sports/ games events at State, National and International level.

i) To liaise with National and State Association / Bodies/ Federations promoting sports, games and cultural activities within India with a view to further sports centric objectives of the Company.

2) Implementation of Revised Contributory Post Retirement Medicare Scheme for Executive (CPRMSE) of CIL and its subsidiaries.

The Board of Directors of CIL in its 289th Meeting held on 18.09.2012 had approved modifications/additions in the

Contributory Post Retirement Medicare Scheme for Executives of CIL and its Subsidiaries (CPRMSE). Accordingly an Office

Order has been circulated on 28.12.2012 for implementation of the Revised Scheme.

The reimbursement charges for hospitalization (indoor treatment) as per CPRMSE has been enhanced to Rs. 25 Lakhs or Rs. 12.5 Lakhs as the case may be with immediate effect. There will be no limit for specified diseases as mentioned in Clause 3.2.1 (d) of the Scheme which will not be accounted for against the amount of Rs. 25 Lakhs or Rs. 12.5 Lakhs as the case may be.

Further annual charges for domiciliary / outdoor treatment expenses have also been raised to Rs. 15,000/- payable in two installments.

3) HOUSING

At the time of nationalisation, there were only 1,18,366 houses including sub-standard houses. The availability of these houses has increased to 3,99,354 (as on 31.03.2014). The percentage of housing satisfaction has now reached 100%.

4) WATER SUPPLY

As against 2.27 lakhs population having access to potable water at the time of nationalisation in 1973, presently a populace of 21.17 Lakhs (as on 31.03.2014) has been covered under water supply scheme.

5) MEDICAL FACILITIES

Coal India Ltd and its subsidiaries are extending medical facilities to its employees and their families through various medical establishments from dispensary level to Central and Apex Hospitals in different parts of the coalfields.

There are 79 hospitals with 5,709 beds, 418 dispensaries, 589 ambulance and 1445 doctors including specialists in CIL and its subsidiaries to provide medical services to the employees. Besides 11 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.

Moreover, medical facilities are being provided to people residing in and around mine premises of the subsidiary companies of CIL.

6) EDUCATIONAL FACILITIES

The primary responsibility for 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.

Coal India Scholarship Scheme (Revised – 2013)

In order to encourage the sons and daughters of employees of Coal India Limited, two types of Scholarship namely Merit and General Scholarship are being provided every year under prescribed terms and conditions.

Scholarship

The no. of students who have been getting Scholarship and no. of students of IIT, NIT and Govt. Engineering and Medical Collages whose tuition fees and hostel charges are being reimbursed are given as under:-

No. of Scholarship No. of students in Company Awardees IITs, NITs and others

ECL 924 60

BCCL 118 49

CCL 795 24

WCL 3581 113

SECL 3883 189

MCL 1436 44

NCL 881 103

CMPDIL 174 22

Total 11,792 604

Grant sanctioned for schools, including privately managed schools:

Amount Company (Figs. in Lakh Rupees)

ECL 373.92

BCCL 274.00

CCL 2038.00

WCL 927.28

SECL 3587.35

MCL 242.00

NCL 2202.42

CMPDIL 1.00

Total 9645.97

7) 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.

8) 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.

9) Banking Facilities

The Management of the Coal Companies are providing infrastructure facilities to various Nationalised Banks for opening their Branches and Extension Counters in the Coalfields for the benefit of their workers. Workers are educated to draw their salaries through 485 Bank/ Extension Counters and they are also encouraged to practice thrift for the benefit of their families.

10) Welfare, Development and Empowerment of Women

There is a Forum for Women in Public Sector Cell at Company Headquarters, Kolkata and five subsidiary companies viz. ECL, BCCL, CCL, SECL and CMPDI. Each WIPS Cell is headed by a Coordinator who plans and executes various activities of the Forum with the help of a duly appointed Executive Committee. The Company extends active support to the various activities of WIPS comprising of welfare activities, training and development activities, seminars, cultural programmes, industrial awareness visits, health awareness programmes etc. for WIPS members, women workers, their families and the society at large.

Coal India Ltd and its subsidiary companies are extending full- fl edged support and patronage to National Conference Forum of WIPS held every year in February at predetermined locations by sponsorship of the event, nomination of maximum number of delegates and also by competing for the BEST ENTERPRISE award. In recent years WIPS cell has 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, and honouring the exceptional talent.

24th National Meet of WIPS

The 24th National Meet of WIPS was held at Swabhumi, Kolkata on 11th and 12th February, 2014. Coal India supported this programme in a grand way by being the Diamond Sponsor, and deputed volunteers and anchors for the programme. The two days National Meet was attended by 700 women from different PSEs, Banks and Insurance Companies from all over the country and it was hosted by the Eastern Chapter of WIPS. Former Lok Sabha Speaker Mr Somenath Chatterjee, and D. G. SCOPE, Dr. U. D. Choubey graced the inaugural session, as distinguished Guests. Coal India won JURIES SPECIAL AWARD for Excellence in Public Sector Management under Maharatna Category.

International Women's Day

International Women's Day was celebrated on 8th March, 2014, at Coal Bhawan by organizing an in-house cultural programme to unleash the potential of women employees of CIL (Hqrs.).

11) Corporate Social Responsibility (CSR)

Corporate Social Responsibility (CSR) is company's commitment to operate in an economically, socially and environmentally sustainable manner, while recognizing the interests of its stakeholders.

Coal India Limited has a well-defined CSR policy introduced w.e.f. 29.06.2010 based on the guidelines issued by the Department of Public Enterprise for Central PSUs on CSR in April 2010, which is also applicable in respect of subsidiary companies of CIL.

The poor and needy people of the society living in and around the coalfields/mining areas in different parts of India are the major areas covered under CSR activities. The CSR policy is operational within the radius of 25 KM of the project site and areas including Head Qtrs. Further CSR activities are also undertaken beyond the mining areas within the respective state with the approval as per norms. CIL being a holding company executes CSR activities on all-India basis.

The annual budget for CSR in respect of subsidiary companies is allocated based on 5% of the retained earnings of the previous year subject to a minimum of Rs. 5 per tonne of coal production of the previous year. In respect of CIL as a Holding Company, 2.5% of retained profit of last year is allocated for execution of CSR activities.

CIL believes in 'mining with a human face' through a socially sustainable inclusive development process. It pursues a structured CSR policy in and around the coal mining areas to improve quality of life with community consensus and inclusive participation.

12) Special Cash Award

During 2013-14, an amount of Rs. 51,000/- has been provided as Special Cash Award to 9 meritorious children of employees of CIL(Hqrs.), Kolkata, Desk Offices of subsidiary companies and Dankuni Coal Complex @ Rs. 7,000/- for 3 students who have secured 90% or above marks in the Class-XII Board level examination and @ Rs. 5,000/- for 6 students who have secured 90% or above marks in the Class-X Board level examination.

13) Recreational facilities:

Holiday Homes in the following tourist spots are available to the employees of CIL and its subsidiaries at subsidized rate.

(a) Puri

(b) Digha

(c) Goa

(d) Manali

(e) Nainital

(f) Katra

14) CIL Welfare Board Meeting.

The 42nd meeting of the Coal India Welfare Board was held on 18th October 2013 at Jaipur with the Central Trade Union Representatives and the representatives of the Management to discuss and decide regarding welfare policies, implementation of different welfare schemes in CIL and its subsidiaries.

32. TREE PLANTATION / AFFORESTATION.

Coal India Limited envisioned that tree plantation plays an important role in our economic development and environmental balance. Accordingly, every year Coal India Limited and its subsidiaries are planting tree saplings on the available land in its command areas. During 2013-14 Coal India Limited and its subsidiaries have planted 13.36 lakhs tree saplings over 526 ha under the plantation / afforestation programme.

Since inception, CIL and its subsidiaries had planted more than 81 million plant saplings over a land area of 34317 ha upto 31st March, 2014.

33. PROGRESSIVE USE OF HINDI.

Coal India Limited kept its efforts continued to propagate and spread the progressive use of Official Language Hindi during the year 2013-14. By adopting the Official Language policy of the Union which is based on motivation and encouragement, Coal

India ensures the implementation of the Statutory Provisions of the Official Languages Policy of the Union. The top management gives it high priority. A brief description of the work done during the year under review towards implementation of the Official Language is appended below:- To augment the process of implementation of the provisions of the Official Languages Act, Rules made there under and in order to increase the use of Hindi in day-to-day official work, regular meetings of the Official Language Implementation Committee are being organized. In these meetings, the members of the Hindi Advisory Committee of Ministry of Coal and the MoC Observer for Coal India were invited regularly.

The meeting of Hindi Advisory Committee of Coal Ministry was held on 3.09.2013 under the Chairmanship of Hon'ble Minister of Coal, in which Coal India Ltd actively participated. The suggestions for implementation regarding use of Hindi received from the members are being implemented.

With a view to create a conducive atmosphere for working in Hindi and accelerating the use of Hindi as Official Language in among official work, a 'Hindi Fortnight' was organized from 14.9.2013 to 28.9.2013. During Hindi Fortnight, various Hindi Competitions such as Hindi essay writing, Hindi noting and drafting, Hindi Translation, Hindi Dictation, and Hindi typing were organized among the employees of Coal India Limited. Cash Awards and Certificates were given to the winners by Chairman, Coal India Ltd. on 20-12-2013 at the event of OLIC meeting where Shri Gopal Krishna Pharlia, member of Hindi Advisory Committee of Ministry of Coal, was also present. This created a consciousness among employees to use the Official Language in official work. It is notable that Regional Sales Offices situated at different cities were granted sufficient fund as per their sizes to celeberate Hindi Diwas and Hindi Week/Fortnight as per their practice. In order to promote Hindi, a Hasya Kavi Sammelan was organized on 21.12. 2013 at Rohini Housing Complex, Ultadanga, Kolkata where a large audience was present.

Another feather in the cap during the period under review was that Coal India Ltd. bagged the first prize in the Corporate Office category for the best implementation of the 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 30.08.2013 at Meghnath Saha Auditorium, Central Glass & Ceramic Research Institute, Kolkata. Coal India also received 'Karyalaya Deep Samman' from Rajbhasha Sanshthan, Delhi at Jim Corbett Park, Nainital on 10.10.2013 for the best implementation of Official Language Policy of the Union. With a view to promote Hindi knowledge of the employees, 10 sets of 9 reputed Hindi Magazines are being distributed among different departments / sections. Help literature and Hindi Dictionaries were provided to the sections & their incharge on their indent for smooth use of Rajbhasha in Official works. Unicode on computers is being activated in each and every computer.

With a view to create a working atmosphere for the use of the Official Language and to remove hesitation of officers and employees to work in Hindi Coal India organized Hindi workshop from time to time so that they may be aware of use of Hindi words, Hindi notings and drafting in their regular official works. Coal India always lays emphasis on imparting training in Hindi Language under Hindi Teaching Scheme of Govt. of India by nominating the employees in Hindi Praveen and Pragya classes. The Company has nominated 4 persons in the current session starting from January, 2014 in these classes. In addition, 4 persons were nominated for Hindi Stenography and Typing classes in the month of February, 2014.

The 3rd sub-committee of the Parliament on Official Language visited Coal India Ltd on 4.10.2013 to observe the status of use of Hindi in official work and to ensure that provisions of the Official Languages Act and Rules made there-under are properly complied with. They suggested ways and means for effective implementation of Official Languages Act in the official work and taken certain assurances from Chairman, Coal India Ltd. to fulfill it within the stipulated time. Coal India Ltd is committed to fulfill these assurances within the stipulated time.

The inspection of offices is a part of this implementation. Officials of Rajbhasha department, CIL (HQ.) reviewed the status of implementation of Official Language at some of its subordinate offices during the year under review. Suggestions have been given to correct the short-comings seen during the inspection and they were advised to achieve the target of Hindi correspondence, as stipulated in the annual programme of the Govt. Of India, Ministry of Home Affairs, Rajbhasha Vibhag.

34. VIGILANCE SET UP

The anti-corruption activities in CIL and its subsidiary companies have been institutionalized by setting up Vigilance Departments in CIL and subsidiary companies each of which is headed by a Chief Vigilance Officer (CVO), appointed by the Govt. of India in consultation with Central Vigilance Commission (CVC) on tenure basis, drawn from various government services.

During the year 2013-14, 44 Intensive Examination of Works/ Contracts were undertaken by CIL (HQ) and its subsidiary companies. In addition, 334 Surprise Inspections were carried out and 335 investigation cases were completed. Besides, 116 Departmental Inquiries were disposed of which resulted in punitive action against 264 officials. Such examinations/investigations have resulted in initiation of various system improvement measures.

As per the directives of Central Vigilance Commission, Vigilance Awareness Week – 2013 has been observed at CIL Hqrs., Kolkata and at subsidiaries from 28.10.2013 to 02.11.2013. emphasizing the theme of "Promoting Good Governance –Positive Contribution of Vigilance". The week was observed by organizing various activities in order to generate awareness, educate and discuss transparency among officials /stake holders as well as general public to arrest the root cause of corruption and to promote good governance. Banners were displayed at prominent places. System Improvement Suggestions were invited from all employees and the suggestions received were analysed. On 31.10.13, Group discussion on "Promoting good governance through e-governance" was organized at different departments of CIL HQ, with an aim to enhance the transparency in procurement process in organisation. In house contest/ competition were organized and entries received from employees and their family members of different departments of CIL HQ. During VAW-2013, Poster Making Competition and Essay Writing competition on anti corruption topics were organized in different categories for the wards of employees of Coal India Limited. The wards and spouses of employees of Coal India Limited were also allowed to participate in the slogan competition for Creating a Slogan and Essay writing competition. An Open Interactive Session with special emphasis on the theme "Promoting Good Governance – Positive Contribution of Vigilance", was held on 04.11.2013. The speakers discussed issues relating to transparency, good governance, Pro- active vigilance etc. In the interactive session, participants raised several issues which were discussed. Thereafter, Vigilance Corner page on CIL website was inaugurated. Apart from annual action plan, policy and circulars, it has facility for online filing of Vigilance Complaints including PIDPI complaint, online filing and viewing of Annual Property Return etc.

Online Whistle Blower Vigilance Complaint System at CIL

The Whistle Blower Vigilance Complaint (WBVIG) is a web based complaint/grievance handling system of Vigilance Division, Coal India Limited for disclosure on any allegation of corruption or misuse of office where identity of the complainant is kept secret. This is based on GoI resolution on Public Interest Disclosure and Protection of Informer (PIDPIR), popularly known as Whistle Blower policy. With regard to Whistle Blower Vigilance Complaint, the Vigilance Division, Coal India Limited is accepting the complaints with the responsibility of keeping the identity of the complainant confidential. Whistle Blower Vigilance Complaint system has been made accessible from CIL Web Portal.

Updation of CIL Purchase Manual.

As a part of Preventive Vigilance, suggestions related to Mode of tendering, Sources for fl oating Limited tendering, Eligibility criteria, Trial orders, Arbitration Clause have been communicated to Purchase Division, CIL(HQ) which may be put up to the committee for deliberations and consideration.

Tender for f nalization of Rate Contract for supply of Explosives

System improvement suggestions have been communicated to Purchase Division, CIL(HQ) for consideration and further needful action.

35. PARTICULARS OF EMPLOYEES.

No employee received remuneration during the year 2013- 14, either equal to or in excess of the limits prescribed under Section 217(2A) of the Companies Act,1956 read with Companies (Particulars of Employees)Rules,1975 as amended.

36. BOARD OF DIRECTORS

Shri S. Narsing Rao Chairman-cum-Managing Director of the Company, continued throughout the year. On being appointed as the Principal Secretary to the Chief Minister, Telengana, he has submitted his resignation to the Secretary, Ministry of Coal on 23rd May,2014. His resignation was accepted on 24th June,2014 by the Ministry of Coal and he relinquished his charge from 26th June,2014(FN).

Shri R.Mohan Das, Director (P&IR), Shri N.Kumar Director (Technical), Shri B.K.Saxena, Director (Marketing) and Shri A. Chatterjee, Director (Finance) were on the Board throughout the year.

Dr A.K.Dubey, Additional Secretary, MoC was nominated on the Board w.e.f 3rd April, 2013 and continued as a part-time official Director on the Board for the balance period of the financial year. Dr. A.K. Dubey, has assumed the additional charge of CMD, CIL with effect from 26th June'2014(FN). Ms Anjali Anand Srivastava, Joint Secretary & Financial Advisor, MoC, continued as a Part Time Director till 8th April, 2013. Smt Sujata Prasad, Joint Secretary & Financial Advisor, MoC, was nominated on the Board w.e.f 3rd May' 2013 and continued as a part-time official Director on the Board for the remaining period of the financial year.

On completion of their tenure a) Dr A.K.Rath ceased to be an Independent Director w.e.f 26th April, 2013 b) Shri Kamal R Gupta, Dr (Smt) Sheela Bhide and Prof. S.K.Barua ceased to be the Independent Directors w.e.f. 3rd August, 2013 and c) Dr R.N.Trivedi, Ms Sachi Chaudhuri and Dr. Mohd. Anis Ansari ceased to be the Independent Directors w.e.f 23rd August,2013.

Dr R. N.Trivedi and Shri Alok Perti were appointed as Independent Directors w.e.f 31st October 2013 and continued for the balance period of the financial year. Shri C. Balakrishnan and Dr. Noor Mohammad were appointed as Independent Directors w.e.f 19th December, 2013 and continued for the balance period of the financial year. Prof Indranil Manna and Shri Shri Prakash were appointed as Independent Directors w.e.f. 6th February, 2014 and continued for the remaining period of the financial year.

Shri A.N.Sahay, CMD, MCL and Shri A.K.Debnath, CMD, CMPDIL have been appointed as permanent invitees on the CIL Board w.e.f. 23rd April, 2013. Shri D.P.Pande has been appointed as a permanent invitee on the board w.e.f 12th July, 2012 and continued till 10th April, 2013.

Your Directors wish to place on record their deep sense of appreciation for the valuable guidance and services rendered by them 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 10 meetings during the year 2013-14.

37. DIRECTORS' RESPONSIBILITY STATEMENT

In terms of Section 217(2AA) of Companies Act, 1956 read with Significant Accounting Policy at Note 33 and additional Notes on Accounts at Note 34 forming part of Accounts (CIL- Standalone 2013-14), 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 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.

38. ACCOUNTS OF THE SUBSIDIARIES

In terms of the General Circular No. 2/ 2011 dated 8th February, 2011 from the Ministry of Corporate Affairs, the Annual Accounts of the subsidiary companies and the related information shall be made available to the shareholders seeking such information.

39. COST AUDIT

In pursuant to the directions of the Central Govt. for conducting Cost Audit of Cost Records, the proposal for appointment of M/s Musib & Co as Cost Auditor of your Company for the year 2013- 14 was approved by the Central Govt. and accordingly they have been appointed. The Cost Audit Report for the year 2012-13 was filed by your Company on 26th September'2013.

40. SECRETARIAL AUDIT

The Company conducted Secretarial Audit for the year 2013-14. The report of the Secretarial Auditor is included in the Corporate Governance Report. The observation of the Secretarial Auditor and Management Explanation is enclosed as Annexure V.

41. B.I.F.R AND BRPSE STATUS

Eastern Coalf elds Limited (ECL)

As on 31st March, 1997 accumulated losses of the Company exceeded its networth by Rs. 251.20 crores. Hence the Company was referred to BIFR in October, 1997 in terms of Section 15(1) of SICA. Due to financial restructuring done by CIL on 31st May, 1998, by converting unsecured loan of Rs. 1179.45 crores into equity, the net worth of the Company became positive as on that date and the Company came out of BIFR. Since the company continued to incur losses year after year, the networth of the Company again became negative as on 31st March, 1999 and the Company was again referred to BIFR in November, 1999. The Company's case was registered as case no. 501/2000.

BIFR sanctioned the Draft Rehabilitation Scheme in November,2004 for implementation. As per the scheme, the networth of the Company was slated to become positive in 2008-09 with concession from CIL. The Cabinet Committee on Economic Affairs has also approved the BRPSE recommended Revival Plan of ECL on 6th October, 2006. As per this Scheme, the networth of the Company was slated to become positive in 2009-10.

As directed by BIFR, in its meeting held on 02.09.2011, DMRP, September, 2011 was submitted. As per the revised DMRP of ECL- September, 2011, the networth of the Company was slated to become positive in 2015-16. Effective steps have been taken to successfully implement the revival plan and the Company is expected to report positive networth by the end of the financial year 2013-14 with concession from CIL.

In the meeting held on 19.09.2013, the BIFR Bench directed the Company to provide copy of progress report to trade unions, and to continue sending the progress report to BIFR and MA (SBI). It further directed the Company to file appropriate application for discharge, once the networth of the Company turns positive.

42. ACKNOWLEDGEMENT:

The Board of Directors of your Company wishes to record their deep sense of appreciation for the sincere efforts put in by the employees of the Company and Trade Unions. Your Directors also gratefully acknowledges the co-operation, support and guidance extended to the Company by various Ministries of the Government of India, in general, and the Ministry of Coal, in particular, besides the State Governments. Your Directors also acknowledge with thanks the assistance and guidance rendered by the Auditors, the Comptroller and Auditor General of India and the Registrar of Companies, West Bengal and wishes to place on record their sincere thanks to the Consumers for their continued patronage.

43. ADDENDA

The following are annexed.

i) The comments and review of the Comptroller and Auditor General of India.

ii) Auditors Report for the year ended 31st March,2014 and Management reply (Annexure I).

iii) Statement pursuant to Sec. 212(i) (e) of the Companies Act, 1956.

iv) Foreign Exchange Earning and Outgo (Annexure II).

v) Details about research and development of the Company

(Annexure III).

vi) Observations of Auditor and Management Explanation under Sec 217(3) of Companies Act 1956. (Annexure IV).

vii) Observation of Secretarial Auditor & Management Explanation (Annexure V).

viii) Presidential Directive dated 17th July,2013 (Annexure VI).

ix) Performance against MoU for the year 2013-14 (Annexure VII).

For and on behalf of the Board of Directors



A.K. Dubey Kolkata, 17th July, 2014 Chairman


Mar 31, 2013

To The Members of Coal India Limited.

Ladies & Gentlemen,

The behalf of the Board of Directors, I have great pleasure in presenting to you, the Thirty-Ninth Annual Report of Coal India Limited (CIL) and Audited Accounts for the year ended 31st March, 2013 together with the reports of Statutory Auditors and the Comptroller and Auditor General of India thereon.

Coal India Limited (CIL) is a Maharatna company under 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 manpower of 357,926 (as on 1st April, 2013). CIL operates through 81 mining areas spread over 8 provincial states of India. Coal India has 462 mines of which 270 are underground, 169 opencast and 23 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.

CIL has 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.

MCL has three subsidiaries viz. MNH Shakti Ltd., MJSJ Coal Ltd. and Mahanadi Basin Power Ltd with 70% ,60 % and 100% equity holding respectively.

During 2012-13, SECL has incorporated two subsidiary companies viz M/s Chhattisgarh East Railway LTD on 12th Mar13 and M/s Chhattisgarh East- West Railway Ltd on 25th Mar13 with 64% holding in each of the subsidiary,

1. NOTABLE ACHIEVEMENTS

CMPDI bags International Award

Central Mine Planning & Design Institute (CMPDI) the Ranchi based mine consultancy arm of Coal India Limited (CIL) received the reputed "Geospatial World Excellence Award 2012" on 24th April, 2012, in Amsterdam, The Netherlands. The award conferred on CMPDI, amidst stiff competition, was in recognition of excellent usage of Geospatial technology for land reclamation monitoring of coal mines on behalf of CIL. CMPDI was selected for the award out of total 149 nominations by a panel of eminent international jury.

Coal India features in Platts Global Energy Company rankings

Coal India Limited was named Platts Top 250 Global Energy Company Rankings for 2012 for having distinguished itself through its remarkable performance last year

Since, 2002 Platts has ranked energy companies financial performance globally, regionally and by industry sector. For 2012 CILs rank was 48 on overall global performance. Platts also analyzed energy companies by nine industry classifications and three regions. CIL ranked No. 2 in Coal and Consumable Fuels in Asia/Pacific Rim; also No.2 in Coal and Consumable Fuels globally and No.11 in overall performance in Asia/Pacific Rim.

Platts rankings are based on four key metrics - assets, revenues, profits and return on investment/ capital. All companies which ranked are publicly held and have assets greater than US $4 Billion.

The rankings were announced in a formal Asia Awards Function on 23 October 2012 in Singapore.

Coal India receives Geospatial Award

Coal India Limited was conferred with Best Geospatial Application in an Enterprise Award, on 22 January 2013 by Geospatial Media and Communications Pvt. Ltd.

The award received by Shri S Narsing Rao, Chairman, CIL, on behalf of the company in a formal ceremony "India Geospatial Excellence Awards" was for CILs innovative and successful implementation of geospatial technologies in exploration and mining techniques which helped in managing and streamlining the usage of natural resources.

Coal India bags CSR Award

Coal India Limited was awarded "IPE CSR Corporate Governance Award 2012" for its outstanding achievement in Corporate Social Responsibility. The award instituted by Institute of Public Enterprises and endorsed by World CSR Congress, CMO Asia and Asian Confederation of Business was presented in a formal function to CIL Officials. CIL lays special emphasis on CSR activities and is among the top PSUs of the country in terms fund allocation to CSR activities.

CIL conferred with two CSR Awards

Coal India Limited was conferred with two Corporate Social Responsibility Awards on 18 February 2013-the World CSR Day. The awards, Global CSR Excellence and Leadership Award for Best Corporate Social Responsibility Practices and Blue Dart Most Caring Companies of India Award were presented in a formal function to CIL officials.

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. 24,979.04 crores for the year 2012-13 against a pre-tax profit of Rs. 21,272.66 crores in 2011-12,thus registering a growth of 17.42% over earlier year.

(Rs. in crores)

Company 2012-13 2011-12 Profit Profit

ECL (+) 1897.18 (+) 962.13

BCCL (+) 1709.06 (+) 822.36

CCL (+) 2683.56 (+) 1970.24

NCL (+) 4420.58 (+) 4265.67

WCL (+) 428.87 (+) 440.50

SECL (+) 6290.37 (+) 6002.87

MCL (+) 6202.48 (+) 5463.69

CMPDIL (+) 29.77 (+) 30.79

CIL/NEC (+) 10338.03 (+) 8599.95

Sub-Total (+) 33999.90 (+) 28558.20

Less: Dividend from Subsidiaries (-) 9038.08 (-) 7307.20

Total (+) 24961.82 (+) 21251.00

Adjustment for deferred revenue income (+) 18.34 (+) 21.59

Adjustment for exchange rate variation on

Current Account overseas subsidiary (+) (1.12) (+) 0.07

Overall Profit as per Consolidation of Accounts (+) 24979.04 (+) 21272.66

CIL has achieved post tax profit of Rs. 17,356.36 crores in 2012-13 compared to Rs. 14,788.20 crores in 2011-12 thus registering a growth of 17.37% over last year.

Highlights of performance

The highlights of performance of Coal India Limited including its Subsidiaries for the year 2012-13 compared to previous year are shown in the table below:

2012-13 2011-12

Production (in million tonnes) 452.21 435.84

Off-take of Coal (in million tonnes) 465.18 433.08

Sales (Gross) (Rs./Crores) 88281.32 78410.38

Gross Profit (Rs./Crores) 25024.21 21326.64

Capital Employed (Rs./Crores) 75488.14 66599.31

Net Worth (Rs./Crores) 48471.99 40453.02

Profit before Tax (Rs./Crores) 24979.04 21272.66

Profit after Tax (Rs./Crores) 17356.36 14788.20

Gross Profit / Capital Employed (in %) 33.15 32.02

Profit before Tax / Net Worth (in %) 51.53 52.59

Profit after Tax / Net Worth (in %) 35.81 36.56

Earning Per Share (Rs.)

(Considering Face Value of Rs. 10 per share) 27.63 23.47

Dividend per Share (Rs.)

(Considering Face Value of Rs. 10 per share) 14.00 10.00

Coal Stock (Net) ( in terms of No. of months Net Sales) 0.76 0.92

Sundry Debtors (Net) (in terms of No of Months Gross Sales) 1.42 0.87

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. 9038.08 crores as against Rs. 7307.20 crores in previous year, the subsidiary-wise break- up of which are as under:-

(Rs. in crores)

Name of the Subsidiary Dividend Income of CIL

CCL 1486.74

(748.10)

NCL 1662.05

(2067.27)

WCL 184.04

(323.25)

SECL 2984.73

(1992.02)

MCL 2720.52

(2176.56)

Total 9038.08

(7307.20) Figures in brackets are for previous year.

Your Directors recommended dividend payment of Rs. 8842.91 crores @ Rs. 14/- per share on 6316364400 Equity Shares of Rs. 10/- each fully paid value at Rs. 6316.36 crores. Out of total dividend, Govt of India gets Rs. 7958.62 crores and other shareholders get Rs. 884.29 crores. (Earlier year - Govt of India - Rs. 5684.72 crores and other shareholders - Rs. 631.64 crores)

3. COAL MARKETING

3.1 (a) Off-take of Raw Coal

Off-take of raw coal continued to maintain its upward trend and reached 465.18 million tonnes for fiscal ended March 13, surpassing previous highest of 433.08 million tonnes achieved during the last year, i.e., an increase of 7.4 % over the last year. Off-take suffered heavily in most of the coalfields, due to excessive rainfall in August-September2012. There was gradual improvement in the second half of the year (Oct12-March13) with CIL surpassing the off-take target of second half. The overall raw coal Off-take achieved was 99 % of the Annual Action Plan Target.

Company-wise coal off-take:

Company-wise target vis-a-vis actual off-take for 2012-13 and 2011-12 are shown below: -

(Figs. in Mt)

2012-13

Company AAP Target Achieved % Achieved

ECL 34.25 35.84 104.64

BCCL 31.80 33.04 103.90

CCL 56.60 52.89 93.45

NCL 69.25 67.29 97.17

WCL 45.25 41.55 91.82

SECL 118.00 121.99 103.38

MCL 113.75 111.96 98.43

NEC 1.10 0.62 56.36

CIL 470.00 465.18 98.97

2011-12 Growth over last year

Company Achieved Abs. %

ECL 30.83 5.01 16.25

BCCL 30.16 2.88 9.55

CCL 48.04 4.85 10.10

NCL 63.61 3.68 5.79

WCL 41.97 -0.42 -1.00

SECL 115.15 6.84 5.94

MCL 102.53 9.43 9.20

NEC 0.80 -0.18 -22.50

CIL 433.08 32.10 7.41

From the above it may be seen that ECL, BCCL & SECL had not only achieved its target but also exceeded last years level of despatch. Barring WCL and NEC all other coal companies registered a positive growth in off-take. Off-take from NCL was affected mainly due to less dispatch through MGR. Less transportation due to law & order problem and frequent break-down of surface miner affected dispatch from CCL. Off-take from WCL was affected due to less dispatch through non-rail mode and transportation constraints. Less transportation due to law & order problem coupled with problems associated with MGR movement to Talcher STPS as well as less availability of railway wagons affected the overall off-take of MCL.

(b) Sector-wise dispatch of coal & coal products:

Sector-wise break-up of dispatch of coal & coal products for 2012-13 against target and last years actual are given below:

(Figs. in Mt)

Year 2012-13 Sector Target Despatch % Satn.

Power (Util) 342.31 345.43 100.91

Steel * 4.54 4.74 104.41

Cement ** 7.70 6.47 84.03

Fertilizer 2.70 2.50 92.59

Others 109.30 107.07 97.96

Despatch 466.55 466.21 99.93

Year Sector 2011-12 Growth over last year Actual Abs. %

Power (Util) 312.07 33.36 10.69

Stell 4.12 0.62 15.05

Cement 6.69 -0.22 -3.29

Fertilizer 2.79 -0.29 -10.39

Others 107.28 -0.21 -0.20

Despatch 432.95 33.26 7.68

* dispatch of washed coal,direct feed & blendable coal to steel plants,

** dispatch to cement plants excluding cement cpp.

3.2 Dispatches of coal and coal products by various modes:

Dispatches of coal and coal products during 2012-13 were 466.21 million tonnes against 432.95 million tonnes in 2011-12, thus registering a growth of 7.7 %. Overall dispatch by non-rail mode was 101% of the target.Growth in despatches via rail mode was 9.6 % whereas overall non-rail mode was 5.5 %. Performance could have been even better but for less movement through MGR at ECL, NCL, MCL and WCL, though road dispatch of CIL was more than the target. Rail dispatch had been almost at par with Target,

Dispatch of coal and coal products by various modes for the years 2012-13 and 2011-12 are given below:

(Figs. in million tonnes)

Year 2012-13 2011-12 Growth over last year Mode AAP Target Despatch % Satn. Actual Abs. %

Rail 253.62 251.11 99.01 229.07 22.04 9.62

Road 108.51 115.68 106.61 113.39 2.29 2.02

MGR 92.15 88.77 96.33 79.32 9.45 11.91

Other Modes 12.27 10.65 86.80 11.17 -0.52 -4.66

Overall 466.55 466.21 99.93 432.95 33.26 7.68

3.3 Wagon Loading

Sustained efforts and regular coordination with railways at different levels saw loading increase by 18.7 rakes per day over the last year. Overall materialization was 98.2 % of the target. Company wise performance shows that ECL & WCL not only exceeded last years level of loading but also surpassed its target.NCL achieved its target and also loaded more than last year. Rake loading performance was more than last year at BCCL, CCL, SECL & MCL. The loading potentials of CCL, NCL, MCL & SECL-Korba could not be fully utilized due to inadequate supply of empty wagons. In some of the coalfields viz. CCL-Karanapura 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 N-Box and NHL-wagons for up-country movement. This apart, availability of wagons was affected in the fourth quarter of the year due to Mahakumbh.

(Figs. in Rake/day)

2012-13 2011-12 Growth over last year Company AAP Target Achieved % Achieved Achieved Abs. %

ECL 16.1 17.8 110.56 14.8 3.00 20.27

BCCL 21.0 20.8 99.05 19.8 1.00 5.05

CCL 30.4 27.3 89.80 25.4 1.90 7.48

NCL 18.7 18.7 100.00 17.7 1.00 5.65

WCL 15.0 17.5 116.67 14.0 3.50 25.00

SECL 35.9 32.9 91.64 31.8 1.10 3.46

MCL 51.9 50.8 97.88 43.5 7.30 16.78

NEC 0.81 0.60 74.07 0.74 -0.14 -18.92

CIL* 189.8 186.4 98.20 167.7 18.66 11.13

3.4 Consumer Satisfaction:

i) In order to ensure enhanced customer satisfaction, special emphasis has been given to quality management. Steps were undertaken 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 a 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 tonnes.

iii) Measures like picking of shale / stone, selective mining by conventional mode as well as by surface miners, adopting proper blasting procedure / technique to reduce 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 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% of total production of CIL. On overall, 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 94.4% upto Dec12 in respect of supplies to power sector during 2012-13. Consumers, covered under the agreed sampling arrangement are required to pay as per the analysed grade of coal. This system is working satisfactorily.

vi) Electronic Weighbridges with the facility of electronic printout have been installed at rail loading points to ensure that coal dispatches 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 100% weighment.

During 2012-13, about 99.1% of coal dispatches to power houses have been weighed compared to about 99.00% during 2011-12. Sized coal despatches to power houses during 2012-13 were 98.66% compared to about 98.64% during 2011-12.

3.5 Marketing Of Coal :

(A) Status of implementation of different provisions under

New Coal Distribution Policy (NCDP) is as under:

(i) For power stations, commissioned on or before 31.03.2009, 306 million tonnes had been considered to be supplied through bilateral legally enforceable Fuel Supply Agreements (FSA) with a trigger level of 90%. The total quantity covered under FSA against the allocation as on March13 was 303.7 million tonnes.

Apart from the above, 176 Letter of Assurances have been issued to power plants by subsidiary companies of CIL, as per recommendations of various SLC (LT) Meetings for a quantity of about 421 Million tonne. In terms of MOC letter dated 17.02.2012, referred under Presidential Directives, out of the above power plants, plants aggregating capacity of about 60,000 MW and covering a quantity of about 250 Million tonnes commissioned/likely to be commissioned during the year 2009-10 to 2014-15, FSAs for 61 units/plants have been executed till 31st March covering a quantity of 88.8 Million tonne per annum. Out of the total 61 FSAs signed, 25 FSAs have been signed by the Government TPPs which includes UPRVUNL, APGENCO, TANGEDCO,RRVUNL,DVC, MAHAGENCO,MPPGCL and KPCL, involving 9955 MW capacity and ACQ of 42.4 MT. However signing of FSA with NTPC for their new power plants is yet to be materialised.

(ii) In addition, 6 power plants having Pre-NCDP Long Term Linkage (commissioned & appearing in the MOC letter dated 17.02.2012 not having LOA) are drawing coal under FSA/MOU.

(iii) Out of 1210 valid linked units other than power and steel plants with eligible FSA quantity of 65.75 mill tonne, 1194 units executed FSAs for 64.78 mill tonne

(iv) For supply of coal to SME sector, 8 mill tonnes was earmarked for allocation to agencies nominated by the State Govts/ Union Territories. 19 states / UTs sent their nomination for 30 state agencies for the year 2012-13. State agencies have signed 24 FSAs for 4.14 mill tonnes and drew coal accordingly.

(v) After implementation of NCDP, 417 LOAs were issued to consumers of sponge iron, CPP and cement sectors against 519 notices issued to consumers of these sectors as per recommendations of various SLC (LT) meetings for a quantity of 65 Million tonnes per annum. Out of these, 305 FSAs have been concluded till date for 40.2 Million tonnes per annum.

(vi) Under Forward E Auction scheme during the year ended Mar13, quantity allocated was 4.96 mill tonnes as against 7.55 mill tonnes allocated during the last year. During the period under review, 44.26 mill. tonnes of coal was allocated under spot e- auction to the successful bidders as against 49.72 mill. tonnes of coal allocated during the last year. The notional gain through Spot E-auction over & above the notified price was 49.9% as against 66.6% during the last year.

(B) Initiative for overcoming logistic bottleneck:

CIL came out with a scheme for supply of coal on "As is - Where is" basis to its power consumers under FSA, to be taken by the purchaser by arranging their own logistics from the stock points. The scheme aimed at augmenting coal dispatch capacity which is constrained due to various logistics issues restricting transportation to dispatch points.

Similar provision is provided in the FSA for the Seller to offer coal upto 5% of the contracted quantity by using their own transportation arrangements, either by Road or Road cum Rail (R-C-R) mode in three coal companies namely CCL, MCL and SECL where logistics inadequacy has restrained coal supply potentials of these companies.

(C) Impact of signing FSA in the modified Model as per the Presidential directives on the financial position of the company:

The Fuel Supply Agreement (FSA) for power plants commissioned/being commissioned after 31.3.2009 was revised under a Presidential Directive dated 4.4.2012 and approved in the 282nd meeting of CIL Board. The directives issued under Clause 37 of Articles of Association of the Company inter alia directed the following:

a) CIL will sign FSA with power plants that have entered into long-term PPAs with DISCOMs and have been commissioned/would get commissioned after 31.3.2009 and on or before 31.3.2015

b) With the plants included in (a) above that have been commissioned upto 31.12.2011, CIL will sign FSAs before 31.3.2012

c) The FSA signed with regard to power plants in (a) above shall be for full quantity of coal mentioned in Letters of Assurance (LOAs) for a period of twenty years, to be reviewed after every five year, with trigger level of 80% for levy of disincentives and 90% for levy of incentives.

d) To meet the commitment, CIL may reduce coal meant for e-auction from 10% to 7% of its production progressively, till the end of XII Plan.

Considering the enhanced commitment, CIL Board while approving the revised FSA model directed to keep the penalty for short supply at a token level of 0.01% of the weighted average price of the coal supplied with a moratorium of three years. Subsequently in the 289th Meeting of the Board, the penalty provisions for short supply were revised and the moratorium was withdrawn. During the process of incorporation of such revisions, CIL Board assessed the likely availability of coal and accordingly agreed for assuring 65% of the ACQ from domestic CIL sources till the end of 2014-15, which is to increase to 70% in 2015-16 and 75% from 2016-17 onwards. In order to attain the trigger level, Board directed that CIL shall supply imported coal on cost plus basis to willing power stations. In case power stations prefer to import coal themselves, the quantity shall be considered as deemed delivery.

CIL has also made provisions for supply of coal from the stock on road cum rail mode for three companies, viz. CCL, SECL and MCL, where the available rail logistics are not matching with the production programme.

This apart, considering availability of coal stock at pitheads, CIL offered coal from the stock on as is where is basis to willing power station for meeting its FSA obligations.

During the year 2012-13, coal offered through e-auction had been more than 10% of the production and as reported by the coal companies there had been no adverse financial impact in 2012-13 on account of supplies of coal to the new power plants under the modified terms of the FSA.

3.6 Coal Beneficiation

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.

Contracts have been finalised for three more washeries while action for finalisation for two more washeries is in advance stage. Further 12 more washeries have been identified to be taken up during the XII Plan.

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 2012-13 after provision for stock deterioration etc. was Rs. 4301.16 crores, which was equivalent to 0.76 months value of net sales. The company-wise position of stocks held on 31.03.2013 and on 31.03.2012 are given below:

(Rs. in crores) (Rs. in crores) Net Value of Net Value of Stock in terms of no. of months of Net Sales Company stock as on stock as on 31.03.2013 31.03.2012 As on 31.03.13 As on 31.03.12

ECL 307.98 476.65 0.40 0.69

BCCL 757.05 946.79 1.07 1.56

CCL 1103.23 1379.68 1.55 2.26

NCL 629.32 391.10 0.86 0.59

WCL 584.54 488.14 1.05 0.87

SECL 445.55 572.54 0.33 0.46

MCL 460.38 530.59 0.55 0.67

NEC/CIL 13.11 15.65 0.45 0.45

Total 4301.16 4801.14 0.76 0.92

3.8 Coal Sales Dues

Net Coal Sales dues outstanding as on 31.03.2013 after providing of Rs. 1855.65 crores (previous year Rs. 1724.60 crores) for bad and doubtful debts, was Rs. 10480.21 crores (previous year Rs. 5662.84 crores) which is equivalent to 1.42 months combined gross sales of CIL as a whole (previous year 0.87 months). Subsidiary-wise break-up of coal sale dues outstanding as on 31.03.2013 against 31.03.2012 are shown below:-

Figures in Rs. Crores

Coal Sales dues Coal Sales dues Company As on 31.03.2013 As on 31.03.2012 Gross Net Gross Net

ECL 3981.52 3582.13 2665.04 2459.37

BCCL 1934.31 1372.05 1619.40 951.72

CCL 2080.45 1533.87 1471.75 1078.66

NCL 1741.28 1738.21 526.14 425.70

WCL 551.66 471.27 133.05 60.51

SECL 1582.46 1350.29 710.09 464.28

MCL 451.93 430.91 251.19 222.59

NEC/CIL 12.25 1.48 10.78 0.01

Total 12335.86 10480.21 7387.44 5662.84

3.9 Payment of Royalty, Cess & Others, Sales Tax/VAT/CST, Stowing Excise Duty, Central Excise Duty, Clean Energy Cess and Entry Tax

During the year 2012-13, CIL and its Subsidiaries paid/adjusted Rs. 19731.11 crores (previous year Rs. 16245.61 crores) towards Royalty, Cess, Sales Tax and other levies as detailed below:-

Figures in Rs. Crores

2012-13 2011-12

Royalty 7248.61 5315.14

Cess & Others 2355.73 2745.85

Sales Tax / VAT 2908.49 2537.05

Stowing Excise Duty 457.54 421.75

Central Excise Duty 4227.49 3040.27

Clean Energy Cess 2319.35 2082.40

Entry Tax 213.90 103.15

Total 19731.11 16245.61

State-wise & Company-wise break-up of during 2012-13 are given below

Figures in Rs. Crores

Company Particulars MP Chattis garh WB Jharkhand Maha rashtra

ECL Royalty 11.11 229.04

Cess & Others 1375.07

Sales Tax/ VAT/CST 321.97 54.59

Stowing Excise Duty

Central Excise Duty 376.50 168.50

Clean Energy Cess 80.34 71.91

Entry tax

Total 2164.99 524.04

BCCL Royalty 0.04 770.45

Cess & Others 3.79

Sales Tax/ VAT/CST 10.75 292.70

Stowing Excise Duty

Central Excise Duty 518.10

Clean Energy Cess 171.51

Entry tax

Total 14.58 1752.76

CCL Royalty 916.56

Cess & Others

Sales Tax/ VAT/CST 273.05

Stowing Excise Duty

Central Excise Duty 547.08

Clean Energy Cess 259.91

Entry tax

Total 1996.60

NCL Royalty 854.99

Cess & Others 288.35

Sales Tax/ VAT/CST 184.38

Stowing Excise Duty

Central Excise Duty 281.28

Clean Energy Cess 177.59

Entry tax 6.40

Total 1792.99

Company UP Orissa Assam CCO/GOI 2012-13

ECL 240.15

1375.07

376.56

34.75 34.75

545.00

152.25

0.00

Total 34.75 2723.78

BCCL 770.49

3.79

303.45

32.31 32.31

518.10

171.51

0.00

Total 32.31 1799.65

CCL 916.56

0.00

273.05

52.13 52.13

547.08

259.91

0.00

Total 52.13 2048.73

NCL 236.98 1091.97

13.24 301.59

177.48 361.86

66.72 66.72

222.91 504.19

139.06 316.65

29.54 35.94

Total 819.21 66.72 2678.92

Company Particulars MP Chattis garh WB Jharkhand Maha rashtra

WCL Royalty 140.31 704.23

Cess & Others

Sales Tax/ VAT/CST 60.73 268.70

Stowing Excise Duty

Central Excise Duty 73.59 363.67

Clean Energy Cess 31.33 174.16

Entry tax 9.34

Total 315.30 1510.76

SECL Royalty 492.99 1624.16

Cess & Others 246.05 424.25 4.98

Sales Tax /VAT/CST 168.11 558.41 3.58

Stowing Excise Duty

Central Excise Duty 206.14 763.52 1.39

Clean Energy Cess 75.65 532.73

Entry tax 20.38 76.15

Total 1209.32 3979.22 9.95

MCL Royalty

Cess & Others

Sales Tax/ VAT/CST

Stowing Excise Duty

Central Excise Duty

Clean Energy Cess

Entry tax

Total 0.00

CIL/NEC/ Others Royalty

Cess & Others

Sales Tax/ VAT/CST

Stowing Excise Duty

Central Excise Duty

Clean Energy Cess

Entry tax

Total

Overall Royalty 1488.29 1624.16 11.15 1916.05 704.23

Cess & Others 534.40 424.25 1383.84 0.00 0.00

Sales Tax/ VAT/CST 413.22 558.41 336.30 620.34 268.70

Stowing Excise Duty 0.00 0.00 0.00 0.00 0.00

Central Excise Duty 561.01 763.52 377.89 1233.68 363.67

Clean Energy Cess 284.57 532.73 80.34 503.33 174.16

Entry tax 36.12 76.15 0.00 0.00 0.00

Total 3317.61 3979.22 2189.52 4273.40 1510.76

Company UP Orissa Assam CCO/GOI 2012-13

WCL 844.54

0.00

329.43

41.29 41.29

437.26

205.49

9.34

Total 41.29 1867.35

SECL 2117.15

675.28

730.10

119.03 119.03

971.05

608.38

96.53

Total 119.03 5317.52

MCL 1225.06 1225.06

0.00

520.40 520.40

110.63 110.63

685.87 685.87

602.04 602.04

71.95 71.95

Total 3105.32 110.63 3215.95

CIL/NEC/ Others 42.69 42.69

0.00 13.64 13.64

0.68 0.68

18.94 18.94

3.12 3.12

0.14 0.14

Total 78.53 0.68 79.21

Overall 236.98 1225.06 42.69 0.00 7248.61

13.24 0.00 0.00 0.00 2355.73

177.48 520.40 13.64 0.00 2908.49

0.00 0.00 0.00 457.54 457.54

222.91 685.87 18.94 0.00 4227.49

139.06 602.04 3.12 0.00 2319.35

29.54 71.95 0.14 0.00 213.90

819.21 3105.32 78.53 457.54 19731.11

4. COAL PRODUCTION

4.1 Raw coal production

Production of raw coal during 2012-13 was 452.211 Million Tonnes against 435.84 Million Tonnes produced in 2011-12. The company- wise production was given below:

(Figures in Million Tonnes)

Company Coking Non-Coking Total

2012-13 2011-12 2012-13 2011-12 2012-13 2011-12

ECL 0.043 0.05 33.868 30.51 33.911 30.56

BCCL 26.970 27.25 4.243 2.96 31.213 30.21

CCL 16.156 15.55 31.905 32.45 48.061 48.00

NCL 0.000 0.00 70.021 66.40 70.021 66.40

WCL 0.330 0.32 41.957 42.79 42.287 43.11

SECL 0.157 0.19 118.062 113.65 118.219 113.84

MCL 0.000 0.00 107.894 103.12 107.894 103.12

NEC 0.000 0.00 0.605 0.60 0.605 0.60

CIL 43.656 43.36 408.555 392.48 452.211 435.84

4.2 Production from underground and opencast mines.

Coal production from underground mines in 2012-13 was 37.776 Million Tonnes compared to 38.39 Million Tonnes in 2011-12. Production from Open cast mines during 2012-13 was 91.6 % of total raw coal production. Company-wise production was as under: (Figures in Million Tonnes)

Company Underground Production Opencast Production Total Production

2012-13 2011-12 2012-13 2011-12 2012-13 2011-12

ECL 6.849 6.83 27.062 23.73 33.911 30.56

BCCL 3.153 3.48 28.060 26.73 31.213 30.21

CCL 1.024 1.09 47.037 46.91 48.061 48.00

NCL 0.000 0.00 70.021 66.40 70.021 66.40

WCL 8.200 8.39 34.087 34.72 42.287 43.11

SECL 16.869 16.41 101.350 97.43 118.219 113.84

MCL 1.678 2.19 106.216 100.93 107.894 103.12

NEC 0.003 0.00 0.602 0.60 0.605 0.60

CIL 37.776 38.39 414.435 397.45 452.211 435.84

4.3 Hard Coke and Washed Coal (Coking) Production

Subsidiary-wise production of Hard coke and Washed coal (coking) was as under:

(Figures in Lakh Tonnes)

Hard Coke Washed Coal Company (Coking)

2012-13 2011-12 2012-13 2011-12

ECL - - - -

BCCL 0.00 0.00 13.29 14.21

CCL - - 12.39 13.34

NCL - - - -

WCL - - 1.44 1.37

SECL - - - -

MCL - - - -

NEC - - - -

CIL 0.00 0.00 27.12 28.92

4.4 Overburden Removal

Overburden Removal during 2012-13 was 746.702 Million Cubic Metres against 735.14 Million Cubic Metres achieved in 2011-12 recording a modest growth of 1.6%. Company-wise details of overburden removal was shown below:

(Figures in Million Cubic Metres)

Company 2012-13 2011-12

ECL 76.448 60.31

BCCL 84.259 81.36

CCL 63.308 65.68

NCL 195.706 201.66

WCL 113.685 122.49

SECL 118.202 113.49

MCL 90.361 85.67

NEC 4.733 4.48

CIL 746.702 735.14

4.5 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 2013-14 is 769.69 Mt against 695 Mt of 2012-13.

In the terminal year 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 of 7.12 %), 77 % share of total production. Out of this, 30.20% is to come from existing mines, 54.2 % from projects under implementation and15. 6 % from new projects to be taken up. On date, 148 projects are under various stages of 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 2013-14 is 482 Mt (growth of 6.59 %).

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 blocks in Mozambique. The capital expenditure for the year 2013-14 has been envisaged at Rs. 5000 Cr plus additional ad-hoc provision of Rs. 4000 Cr for acquisition of coal assets abroad and development of coal block in Mozambique.

5. POPULATION OF EQUIPMENT

The population of major Opencast Equipment (Heavy Earth Moving Machinery) as on 1.4.2013 and on 1.4.2012 alongwith its performance in terms of availability & utilisation expressed as percentage of CMPDIL norm was as under:

No. of Equipment Indicated as % of CMPDIL Norm

Equipment As on As on Availability Utilisation 1.4.2013 1.4.2012 2012-13 2011-12 2012-13 2011-12

Dragline 39 40 90 93 77 83

Shovel 715 727 88 89 77 75

Dumper 3109 3280 101 100 70 69

Dozer 972 987 91 93 58 58

Drill 707 664 99 99 65 71

6. CAPACITY UTILISATION

I. SYSTEM CAPACITY UTILIZATION

The overall system capacity utilization of CIL as a whole for the year 2012-13 was 82.99 %. against 86.12 % during 2011-12. Subsidiary- wise details in terms of percentage vis-a-vis preceding year was as under:

Company Unit 2012-13 2011-12

ECL 118.97 129.90

BCCL 79.29 97.77

CCL 84.89 93.81

NCL 76.69 79.87

WCL % 93.41 102.49

SECL 80.52 79.87

MCL 75.61 69.90

NEC 66.34 56.29

Total CIL 82.99 86.12

7. PRODUCTIVITY: OUTPUT PER MANSHIFT (OMS)

Output per manshift (OMS) during 2012-13 improved to 5.32 Tonnes per manshift from 4.89 Tonnes per manshift of previous year, Company-wise position was given in the following table:

(Figures in Tonnes per Manshift)

Underground OMS Opencast OMS Overall OMS

Company 2012-13 2011-12 2012-13 2011-12 2012-13 2011-12

ECL 0.46 0.44 10.17 8.64 1.94 1.68

BCCL 0.35 0.36 8.31 6.57 2.50 2.20

CCL 0.33 0.32 6.09 5.79 4.42 4.19

NCL 0.00 0.00 13.65 13.55 13.65 13.55

WCL 1.10 1.08 5.03 4.22 2.97 2.70

SECL 1.37 1.30 19.26 19.32 6.72 6.44

MCL 0.97 1.24 21.34 20.38 16.07 15.36

NEC 0.01 0.01 3.77 3.79 1.30 1.23

CIL 0.77 0.75 11.48 10.40 5.32 4.89

8. PROJECT FORMULATION:

8.1 Preparation of Reports: As prioritized by subsidiary companies of Coal India Limited, preparation of Project Reports (PR) for new/ expansion/re-organisation mines was carried out during the year 2012-2013 for building additional coal production capacity to the tune of 75 Mty. 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 XII Plan.

During the year under review, CMPDI had prepared 271 reports which include 15 Geological Reports, 29 Project Reports, 168 Other Reports (includes 17 Operational Plans) and 59 Draft Environment Management Plans (including 30 Form-I).

Expert Consultancy Services:

During 2012-2013, CILs subsidiary companies received expert consultancy services in the following fields:

- Environmental Management and Monitoring,

- Remote Sensing,

- Energy Audit (Diesel & Electrical),

- Diesel & Electrical Consumption Benchmarking

- 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 Utilisation - 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.

8.2 Project Implementation

a) The following 2 coal projects, each costing Rs. 20 Crores & above, with ultimate capacity of 2.86 Mty and completion cost of Rs. 111.54 crores, were completed during the year 2012-13:

Sl No Cos Name of Projects Type Sanctioned Capacity Completion Cost (Mty) (Rs. Crores)

1 CCL Amlo OC OC 2.50 64.82

2 SECL Nawapara UG 0.36 46.72

TOTAL 2.86 111.54

b) 5 Coal projects, each costing Rs. 20 Crores & above, with an ultimate capacity of 11.00 MTY and sanctioned capital of Rs. 1456.21 Crs have started contributing production during the year 2012-13 :-

Sl No Cos Name of Projects Type Sanctioned Capacity Completion Cost (Mty) (Rs. Crores)

1 ECL Sonepur Bazari Comb* OC 8.00 1055.05

2 SECL Vijay West UG 0.50 92.60

3 SECL Amlai OC Sec-B OC 1.50 198.58

4 WCL Junakunada OC 0.60 23.76

5 WCL Gauri Deep OC 0.40 86.22

TOTAL 11.00 1456.21

*Earlier 3.5 Mty project has been dovetailed into 8 Mty,

Status of Ongoing Projects :

There are 117 mining (excluding 13 projects of WCL approved subject to finalization of Coal Supply Agreement on cost plus basis.) and 26 non-mining projects costing Rs. 20 Crores and above, under implementation,

Out of 117 mining projects, 55 projects are running on schedule & 62 are delayed. Out of 26 non-mining projects, 21 are on schedule and 5 are delayed.

Status of ongoing projects costing Rs. 20 Crs. and above

Projects Total projects Projects on schedule Projects delayed

Mining 117 55 62

Non Mining 26 21 5

Total 143 76 67

Reasons of delay Mining Projects :

SL REASONS FOR DELAY NO OF PROJECTS

1 ADVERSE GEOMINING CONDITIONS 1

2 DELAY IN LAND ACQUISITION + R&R 42

3 MISCELLANEOUS 19

TOTAL 62

Non - mining Projects :

Out of 5 delayed non-mining projects, 4 are delayed due to land and rehabilitation problems including forest problem and one project due to miscellaneous reason.

8.3 Projects Sanctioned (Costing Rs. 20 Crores & Above) :

(a) No Advance Action proposal was sanctioned during 2012-13,

(b) CIL Board had sanctioned 2 mining projects during 2012-13,

Sl No Cos Name of Projects Type Sanctioned Capacity Completion Cost (Mty) (Rs. Crores)

1 ECL Sonepur Bazari Comb OC 8.00 1055.05

2 WCL Chinchala- Chikalgaon Amalgamated OC 3.00 1176.13

(c) CIL had approved one Non-mining project during the year 2012-13.

Approving Board Subsidiary Name Sanctioned Capacity Sanctioned Capital (Mty) (Rs. Crores)

CIL NCL Incr. CHP for Jayant Expn Project 5.00 129.48

(d) The Subsidiary Company Boards had sanctioned one mining project under its delegated power during the year 2012-13 :

Sl No Cos Name of Projects Type Sanctioned Capacity Completion Cost (Mty) (Rs. Crores)

1. WCL Sch of Diversion of Amb River Phase-IV of Umrer OC OC 2.00 64.11

(e) The subsidiary company Boards sanctioned following 8 Non-mining Projects under its delegated powers during 2012-13.

Sl Cos Non-Mining Projects Capital (Rs. Cr)

1 MCL Construction of diversion road from check post of Lingaraj OCP to NH-200 for a length of 136.00 2.30 Km with 01 fly over and 01 ROB.

2 MCL Construction of ROB at the level crossing near Ghantpara Village at Talcher 37.50

3 MCL Widening of road from 2 lane to 4 lane from Bankibahal to Kanika Rly Sdg. Length-27km 162.00

4 MCL All CT roads in B-G area inside mine premises leading to siding having life more than 22.96 5 yrs to be constructed with concrete.

5 MCL All CT roads in Ib coalfield inside mine premises leading to siding having life more 94.22 than 5 yrs to be constructed with concrete.

6 MCL All CT roads in Talcher CF inside mine premises leading to siding having life more 179.00 than 5 yrs to be constructed with concrete.

7 MCL Construction of Bye Pass Rd from Lajkura Welcome Gate to Mine 3 Jn of 3.7 Km length 35.56

8 MCL Construction of concrete CT Road connecting Bundia Mine to NH 200 of 12.54 km length 135.29

8.4 Revised Project /Revised Cost Estimates

(a) No RPR/RCE was sanctioned by CIL during 2012-13.

(b) Subsidiary Company Boards sanctioned following RPRs/RCEs during 2012-13

Sl No Cos Name of Projects Type Sanctioned Capacity Sanctioned Capital (Mty) (Rs. Crores)

1 CCL Kathara RCE OC 1.9 128.94

2 WCL Urdhan RCE OC 0.50 70.23

3 SECL Baroud Expn RCE OC 3.00 258.56

4 SECL Mahan RCE OC 0.36 148.72

9. CONSERVATION OF ENERGY

CILs subsidiaries have undertaken the following measures, interalia to conserve energy:

- Awareness programmes are conducted at various levels for efficient use of energy,

- Energy Audit and Benchmarking are conducted for colliery and other loads.

- Installation of capacitor banks for improvement of power factor,

- Use of energy efficient lamps.

- Constructed strata bunker in underground mines to avoid idle running of belt conveyors, thereby saving energy.

- Installation of time switches for street lights.

- Use of higher voltage cables nearer to the coal face in mine to reduce energy losses.

- Installation of demand controller to control maximum demand.

- CIL coordinates with the subsidiaries and follow up their activities of energy conservation.

- Performance of subsidiaries are also discussed during co-ordination meeting.

- Project-wise specific consumption of diesel is monitored in comparison to benchmarking by CMPDI for selected opencast projects (altogether 69 nos) of different subsidiaries of CIL.

In addition the following R&D projects are in progress :-

- CIL R&D endeavor under the project entitled "Green House Gas recovery from coal mines and coal beds for conversion of energy (GHG2E)" has been taken up for capacity building in new technology area of Coal Mine Methane (CMM) drainage and CO2 etc. Substantial data have been collected under this project from different coalfield areas for analysis and simulation for evaluation of Green House Gas recovery technique.

- Another project entitled "Research and Development on efficient energy management pilot study and action plan" has recently been taken up with CIL R&D fund. Preliminary studies including field studies / visit have started.

10. CAPITAL EXPENDITURE

Overall Capital Expenditure during 2012-13 was Rs. 2915.23 crores as against Rs. 3727.17 crores in previous year, subsidiary-wise details of which are given below:-

Figures in Rs. Crores

Company 2012-13 2011-12

(BE) Actual (BE) Actual

ECL 450.00 202.94 400.00 332.96

BCCL 300.00 266.15 400.00 410.72

CCL 425.00 397.42 350.00 320.99

NCL 850.00 444.19 800.00 702.11

WCL 350.00 264.05 350.00 275.72

SECL 900.00 628.85 600.00 937.65

MCL 500.00 531.56 700.00 497.95

CMPDIL 30.00 6.94 30.00 16.30

NEC/CIL/Others 470.00 173.13 590.00 232.77

Total 4275.00 2915.23 4220.00 3727.17

11. CAPITAL STRUCTURE

The authorized share capital of the company as on 31.03.2013 was Rs. 8904.18 crores, distributed between Equity and Non- cumulative redeemable preference shares as under:

(i) 800,00,00,000 Equity Shares of Rs. 10/- each Rs. 8000.00 crores (Previous Year 800,00,00,000 Equity Shares of Rs. 10/- each)

(ii) 90,41,800 Non-cumulative 10% redeemable Rs. 904.18 crores Preference Shares of Rs. 1000/- each (Previous Year 90,41,800 Non-cumulative 10% Redeemable Preference Shares of Rs. 1000/- each)

Total Rs. 8904.18 crores

The paid-up equity capital as on 31.03.2013 was Rs. 6316.36 crores, which includes Rs. 256.93 crores worth of Equity Shares issued in favour of the Government of India (GoI) 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 31.03.2013 As on 31.03.2012

Share Capital - Equity

Investment by GoI 5684.72 5684.72

Other Investors 631.64 631.64

Total 6316.36 6316.36

12. BORROWINGS

Aggregate borrowings of CIL has decreased to Rs. 1305.30 Crores in 2012-13 from Rs. 1527.38 Crores in 2011-12, as detailed below.

Figures in Rs. Crores

As on 31.03.2013 As on 31.03.2012

Share Capital - Equity

Foreign Loans including deferred credits

IBRD/JBIC 1136.23 1362.72

EDC Canada 160.35 155.63

Liebherr France SA., France 8.72 9.03

TOTAL 1305.30 1527.38

The debt servicing has been duly met,

13. INTERNATIONAL CO-OPERATION

International Co-operation.

Coal India is envisaged 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

- Locating overseas countries interested in Joint Venture in the field of coal mining with special thrust on coking coal mining.

The key areas identified include modern technologies for mass production in 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 the above, emphasis is being given to transfer modern technologies and training.

CIL would endeavor to acquire suitable technology through international bidding. Bilateral cooperation may also be encouraged for locating availability of cost effective and latest technologies in the aforesaid areas, if the technology proves to be discernibly advantageous. CIL, therefore, has been following both these routes,

Following were the details of activities that took place with various countries during 2012-13.

Indo-US Collaboration:

U.S -India Energy Dialogue was held on September 26th-28th, 2012. Coal India Limited focused on the following areas concerning bilateral cooperation.

- The accomplishments in the area of cooperation for coal under India-US Coal Working group have been delineated,

- Priorities for cooperation in the next three to four years in the field of 3D Seismic Survey, Planning of large capacity OC, Microwave remote sensing for coal mine safety, Mine rehabilitation and reclamation, Underground coal gasification (CG) areas, Coal Mine Methane (CMM) projects, Ventilation Air Methane (VAM), Coal Bed Methane (CBM) clearing house, Development of Shale gas .

- Inputs with regard to international trends, policies, technology and regulatory issues.

A review meeting was held at Ministry of coal on 22.1.2013 to discuss the status of ongoing projects, work plan as per the last working group meeting held on 26-09-2012. Copy of the work plan has been circulated by MoC. CMPDIL has informed that US EPA grant of CMM/CBM clearing house has been extended for a further period of three years.

Ongoing Projects

A) Development of Coal Preparation Plant Simulator

B) Under Ground Coal Gasification

C) Cost Effective Technology for beneficiation and Recovery of fine coal

New Areas of Collaboration

i) Advanced Dry Coal Cleaning Technologies

ii) 3D seismic Surveys.

iii) Planning Large Capacity Opencast mines.

iv) Microwave Remote Sensing for Coal Mine Safety,

v) Mine Rehabilitation and Reclamation.

Indo-Russia collaboration:

India-Russia Joint Working Group (JWG) on Modernization and Industrial Cooperation has been constituted under the India-Russia Inter -Governmental Commission Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC)/India-Russia Trade and Investment Forum (IR-TIF). Ministry of Mines informed that under this JWG, first meeting of the Subgroup on mining was held on 27th August 2012. Ministry of mines forwarded the minutes of the meeting which envisaged cooperation in the field of coal mining industry as follows:

- The Russian team confirmed their readiness to expand scientific and technological cooperation with their Indian counterparts in:

1. New energy saving technologies of a coal mining in U/G and O/C.

2. Application of energy saving processes of coal processing.

3. Use of renewable and non-traditional energy in the coal industry

India-Russia Trade and Investment Forum was scheduled on April 12, 2013.CIL& CMPDIL has forwarded a note to MoC mentioning the potential areas of cooperation with Russian side. Potential areas are 3D-Seimic Survey, Strengthening capabilities for mine closer planning and implementation, Cast Blasting and Advance Dragline application for large Opencast Mines, Collaboration/Technology transfer for biological reclamation of degraded land due to mining operations, Development of Coal Mine Methane, Shale Gas, VAM, UCG, Extraction of steep seams at North Eastern Coalfields, Microwave Remote sensing for Coal mine safety etc.

Indo-Japan Collaboration

Meeting of Working Group under Indo-Japan Energy Dialogue was held on 7th August, 2012 under the Chairmanship of Member (Energy). wherein it was decided to hold the next meeting from 9th to 10th Oct12 in Japan. Sri S.K. Singh, Joint Secretary, Ministry of Coal with Director (Technical), Coal India Limited, attended the meeting of Coal Working Group and Indo-Japan Energy Dialogue held from 9th -10th October 2012 in Japan.

Indo-Czech Co-operation

Ministry of coal forwarded a draft protocol of 9th Session of Indo- Czech JEC in Prague during September, 2012. Para 36 of the draft protocol concerning Coal sector status is as under,

"The two sides expressed satisfaction with the established contracts between Indian Coal industry and Czech manufacturers of mining equipment. It was appreciated that the visit of Shriprakash Jaiswal, Minister of Coal, Govt. of India and the delegation of Indian Coal Sector to the Czech Republic in June 2011 and the seminar of coal industry held in Prague on this occasion created good impression for further cooperation."

Co-operation with Ukraine

MoC vide letter dated 7th May 2012 forwarded a copy of letter dated 24th April 2012from Ministry of External Affairs, regarding Fourth Session of Indo-Ukrainian Inter-Governmental Commission on Trade, Economic, Scientific, Technological, Industrial and Cultural Cooperation and requested CIL to forward a note for discussion in the aforesaid meeting. MoC has forwarded a copy of minutes on 27/06/2012 of the fourth Session of the Indo-Ukrainian Inter-Governmental Commission.

14. WORLD BANK FINANCED PROJECTS FOR 2012-13

The net utilization of loan distribution 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 is no drawals of loan since January 2004.

With the repayment of loan of USD 138.83 million to IBRD and JPY 19,026.87 million to JBIC till 2012-13, the total CSRP loan as on 31st March2013 stands at USD 106.90 million (equivalent to Rs. 585.80 Crs.) on account of IBRD and JPY 9,413.95 million (equivalent to Rs. 550.43 Crs.) on account of JBIC.

Thus a total amount of Rs. 1136.23 Crs. is lying outstanding under CSRP Loan as on 31st March2013.

COAL VIDESH DIVISION

Initiatives undertaken for acquisition and development of coal assets abroad

(A) Activities of Coal India Africana Limitada (CIAL),

Mozambique.

Prospecting Licenses for coal having nos 3450L & 3451L, covering a total area of 224 Square kilometers were granted to CIAL, a wholly owned subsidiary of CIL in Mozambique in 2009 which is valid till August 2014.

CIAL became operational in February 2012 by setting up of an office in the city of Tete in Mozambique with deputation of 4 members team of senior officers. Various activities related to exploration of coal blocks have been initiated, which are as follows:

1. Environmental clearance from Govt. of Mozambique for carrying out exploratory drilling has been obtained in July 2012.

2. Geological mapping for the entire allotted coal block by engaging a consultant through global tendering has been completed.

3. Drilling contract for carrying out initial 10,000 mtrs of core drilling was awarded in Nov 2012. As on 31st March 2013 5,100 mtrs had been drilled.

4. Additional 30,000 mtrs of drilling in the allotted coal blocks has been awarded in June13.

5. For demarcation of the concession area and location of the proposed exploratory boreholes, surveyors from CMPDI were engaged in Nov-Dec 2012. Major part of the work has since been completed.

(B) Global Expression of Interest inviting proposals related to acquisition of overseas coal assets

Pursuant to guidelines of Govt. of India for acquiring raw material assets abroad, a notice inviting proposal offering overseas coal assets to CIL was floated on 27th February 2013. Number of proposals have been received and are being evaluated on the basis of their marketing potential.

(C) MOA with parastatal of Limpopo province of South Africa.

Premier Provincial Govt. of Limpopo, Republic of South Africa, has written to Chairman, CIL reiterating interest for undertaking joint business initiatives between Govt. of Limpopo and CIL for exploration and development of coal resources in Limpopo Province. 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 was signed on 26th Sept. 2011 in New Delhi. As a follow up action, a Memorandum of Agreement (MoA) to be signed between CIL and the parastatal agencies nominated by the provincial Govt. Limpopo, has been prepared and is under the consideration.

(D) Setting up of a wholly owned subsidiary of CIL in South Africa.

To implement the Memorandum of Understanding, CIL has decided to register a wholly owned subsidiary(WOS) in South Africa which shall in turn form a joint venture company with organizations owned by Provincial Govt. of Limpopo for undertaking all related activities covered under MoU.

CIL had awarded this job to a consultant through competitive bidding in February 2013. The draft Memorandum of Incorporation prepared by the consultant is under the process of approval.

15. MASTER PLAN FOR DEALING WITH FIRE,SUBSIDENCE AND REHABILITATION

The Master Plan for dealing with fire, subsidence and rehabilitation in the lease hold of BCCL and ECL was approved on 12th Aug2009 by Govt. of India with an estimated investment of Rs. 7112.11 Crs. for Jharia Coalfields and Rs. 2661.73 for Raniganj Coalfields. Implementation period has been delineated as 10 years.

- Implementation of Master Plan is being monitored by High Powered Central Committee at regular intervals. Advisor (Projects), Ministry of Coal took the last meeting on 23.04.2013.

Master Plan dealing with Fire, Subsidence and rehabilitation in the Leasehold of Eastern Coalfields Limited.

Asansol Durgapur Development Authority (ADDA), a state Govt. organization has been identified as implementing agency for Rehabilitation of Non-ECL houses. Contingency charges @3% & Supervision charges @5% (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-I & 15060 nos. in Phase-II)

- Requirement of Land assessed for Rehabilitation :- 896.29 Ha.

- No. of Locations identified for Diversion of Infrastructure :- 7(Railway lines, Roads & IOC pipe lines.)

- Capital Requirement estimated for Rehabilitation :- Rs. 2610.10 Crores. (Rs. 1424.84 Crs & Rs. 1185.26 respectively in Phase I & II)

- Capital Requirement estimated for Diversion projects :- Rs. 11.35 Crores. (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 :- Rs. 2661.73 Crores. (Include Phase-I & II, each of 5 years.)

Master Plan dealing with Fire, Subsidence and rehabilitation in the Leasehold of Bharat Coking Coal Limited.

Jharia Rehabilitation & Development Authority (JRDA), a state Govt. organization has been identified as implementing agency for Rehabilitation of Non-BCCL houses. Contingency charges @3% & Supervision charges @5% (total 8%) are to be paid to JRDA for implementation, which is included in the assessed capital requirements.

- No of fire areas for which action plan has been proposed :- 67 nos.

- No. of houses to be vacated :- 98314 nos.

- No. of houses proposed to be reconstructed :- 79159 nos. ( 45795 nos. in Phase-I, 33364 nos. in Phase-II)

- Requirement of Land assessed for Rehabilitation :- 1504.99 Ha

- Capital Requirement estimated for Rehabilitation :- Rs. 4780.60 Crs.

- Capital Requirement estimated for Diversion projects :- Rs. 20 Crs.(Railway line, Road)

- Capital Requirement estimated for Fire schemes :- Rs. 2311.50 Crs.

- Total Capital Requirement assessed :- Rs. 7112.11 Crs.

The R & R Package for Non-ECL and Non-BCCL endangered 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 upto a maximum limit of owned land at unstable site, or in lieu a constructed flat of 40 Sq.m. as super built up area having two rooms, a kitchen and a toilet in a triple storied building will be provided. 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 family will be provided a constructed flat of 27 Sq.m. as super built up area,

(d) Head of each family will be paid a minimum wage for 250 days per year for two years for income generation due to displacement/ shifting,

(e) A shifting allowance of Rs. 10, 000/- will be paid to each family to be resettled at new townships.

(f) No employment shall be offered for any rehabilitation under the Master Plan.

- The Major Implementation Activities Proposed to be completed in Phase I & II are:

i. Demographic Survey of affected people, Valuation of homestead land & house including all structures/ infrastructures in that land, Preparation/ Distribution of photo-identity cards etc.

ii. Identification & Acquisition of land for proposed townships.

iii. Tendering & Awarding of work for land survey and township planning.

iv. Survey of land,

v. Township planning.

vi. Tendering & Award of work for townships,

vii. Construction of approach road, Development of land & infrastructural facilities, Demarcation of plots, construction of flats and providing amenities like schools, bank, postoffice, hospital,community centre, play ground, shopping centre etc.

viii. Allotment of plots/ flats for resettlement,

ix. Shifting of people from unstable sites.(Rehabilitation & Resettlement)

x. Demolition of super structure/ infrastructures at unstable sites.

xi. Fire mitigation.

xii. Diversion of surface infrastuctures like Rail , Road, IOC pipeline etc.

Action taken for implementation of Master Plan :

A. For Raniganj Coalfields

a) Status of Demographic Survey:

ADDA has issued work order for all the 142 unstable sites to M/S XISS, Ranchi. Out of which M/S XISS has completed 120 sites & work is going on in 10 sites. Total Demographic Survey completed (till 31.03.2013) is 43171.

b) Land acquisition status:

Acquisition of land in Bonjemari (1300 acres) and Gourandi (2300 acres) is under progress by W.B Govt.

c) Diversion of surface infrastructures (Rail, Roads & IOC Pipelines etc):

The proposal for appointing CIMFR Dhanbad, for (1) Geo-technical Survey of the area to find out the total void below the Rly line and (ii) Stability analysis of the workings and prediction of any surface subsidence based on detail geo-technical investigation and analytical method has been approved by ECL Board of Directors. The above work has been awarded to CIMFR, Dhanbad on 08.11.2012 for Andal- Sainthia Railway Line of Pandaveswar Area. The work of stability test has been conducted by CIMFR in the recent past. Representatives of DRM Eastern Railway, Asansol, Officials of DGMS were present during the stability test conducted by M/s CIMFR on 11.03.2013. CIMFR has informed that the report will be submitted shortly.

For preparation of Feasibility Study and Detail Project Report for diversion of Andal-Sitarampur Railway line of Salanpur Area, has been awarded to M/S RITES Ltd.

For diversion of IOCL pipe line, a preliminary survey has been conducted by NIRM and the final Survey for pipe line diversion work will commence shortly,

B. For Jharia Coalfields :

a) Demographic (socio-economic) survey:

CIMFR and ISM started the job of demographic / socio-economic survey of fire affected / subsidence prone areas for identification of families living in the areas. Out of total 595 nos. of fire affected / subsidence prone sites / areas to be surveyed, CIMFR and ISM have completed demographic / socio-economic survey of 348 sites in which 37367 families have been identified.

b) Status of Land acquisition by JRDA for rehabilitation sites:

Proposal for acquisition of 1038.88 acres of Raiyti land sent to DLAO, Dhanbad by JRDA.

Proposal for acquisition of 309.13 acres of Government land was sent to Addl. Collector, Dhanbad.

440 acres of Raiyti and Govt. land has been surveyed for acquisition / transfer by JRDA,

Delivery of possession for mouza Lipania (120.82 acres Raiyati land) situated near Belgoria for construction of houses for non-BCCL families and Dhokra (7.99 Acres Raiyati and 1.35 acres Govt. land) for construction of Ring Road has been taken over by JRDA from DLAO, Dhanbad on 28.02.2013. Transfer of land to JRDA by BCCL-86.44 acres of vacant land in Bhuli Township and 849.68 acres of non-coal bearing land in and around Belgoria Township belonging to BCCL have been identified for developing new Townships by JRDA. NOC for transferring the land to JRDA has been given by MoC.

c) Diversion of Road from fire affected areas:

Repairing / widening of Mahuda-Topchanchi road as a short-term measure duly prepared by RITES, has been approved by Secretary, Road Construction Deptt. (RCD) Govt. of Jharkhand. RCD has finished 37% of job.

DPR for construction of road from Joraphatak to Dhokra, for connectivity of Belgoria Township was forwarded to RCD, Govt. of Jharkhand by JRDA for technical sanction. Work has been awarded by RCD, Dhanbad, which is likely to start shortly,

d) Diversion of Rail from fire affected areas:

RITES had submitted discussion plan on the above subject to JRDA. BCCLs observations had been sent to JRDA. In this regard, E.C. Railway, Hazipur and S.E. Railway, Kolkata had also forwarded the brief report along with their comments to Railway Board, New Delhi.

On the other hand, directions have been issued to RITES Ltd. by JRDA for traffic survey and data collection to initiate feasibility study regarding Diversion of Railway lines from fire affected and subsidence prone areas.

e) Utility Services from fire affected areas:

Feasibility Report for diversion of utility service of Jharia Coalfield has been submitted by RITES Limited on 30.03.2013.

f) Service Building & Welfare Programme:

Construction of service buildings like (Market Complex, Bank, Post Office, Computer and Sewing Training Centre, Masjid, Temple etc.) are in different stages.

g) Status of BCCL & Non-BCCL house schemes as per Master plan:

Construction of 344 houses at Bhuli, Bhimkanali, Nichitpur and Katras Coal Dump in triple storied blocks has been completed in non-coal bearing zone. 1152 triple storied quarters [96 Blocks each of 12 units] are under construction at various places in non-coal bearing zone of Kusunda, Katras, and Lodna.

BCCL Board has approved construction of 4080 triple storied quarters / houses [340 Blocks each of 12 units].

Non-BCCL houses [54159 nos]:

2352 houses have been constructed in Belgoria rehabilitation Township "Jharia Vihar"

1162 families have shifted till 31-03-2013.

1117 affected families were given Rs. 10000/- each as shifting allowance.

Status of Fire Schemes:

11 fire schemes have been approved by Board and implemented, out of which 4 schemes have been completed and rest are at different stages of execution.

Three more fire schemes are under preparation at CMPDIL.

BCCL approached NRSA for conducting fresh survey of fires and subsidence by remote sensing methods in January 2013. NRSA is preparing a proposal for the purpose and the work would be started soon.

Disbursement of fund by CIL

- BCCL till March, 2013 : Rs. 218.73 Crores.

- ECL till March 2013 : Rs. 160.64 Crores.

16. ENVIRONMENTAL MANAGEMENT

16.1 Environmental Impact Assessment (EIA)/Environmental Management Plan (EMP)

EIA/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. EIA/EMPs for mines requiring renewal of lease are also prepared for environmental clearance. EIA/EMPs on cluster basis for smaller mines of ECL and BCCL are also being prepared for environmental clearance. During the year, CMPDI has prepared 30 Form-I and formulated 29 Draft EIA/EMPs. Environmental clearances were also obtained for 30 projects from MoEF which includes 3 washeries.

16.2 Pollution Control Measures and their Efficacy

Measures are being undertaken 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 all the major projects. Domestic wastewater 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 undertaken, if required, to keep the pollutant level within the limits prescribed by regulatory bodies.

Technical and biological reclamation of mined out areas and the external overburden dumps are being undertaken 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.

16.3 ISO:14001 System

Actions like implementation, certification and re-certification of different units of CIL against ISO 14001 is continuing. During the year 2012-13, 16 units (14 Opencast projects, 1 Washery and 1 Hospital) have got re-certification for ISO 14001 after successful completion of three years validity period. 81 units of CIL got certification which includes opencast projects, underground mines, washeries, workshops and hospitals till the year 2012-13. In addition, Northern Coalfields Limited (NCL), as a company, has also got ISO 14001 certification.

16.4 Monitoring of Mines through Remote Sensing

CMPDI, through, Coal India Limited has introduced Satellite Surveillance System for monitoring of backfilling & reclamation of land for all the opencast mines. Land reclamation monitoring of 50 nos. of opencast projects having more than 5 million cu.m. production capacity (coal+OB) and 40 opencast projects having less than 5 million cu.m. production capacity (coal+OB) based on high resolution satellite data has been completed during the year 2012-13.

Land use / vegetation cover mapping of 6 coalfields viz. Karanpura, West Bokaro, East Bokaro, Bander, Singrauli and Korba 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.

16.5 R&R Policy of CIL,2012

The Resettlement & Rehabilitation Policy, 2012 has been finalized based on the deliberations of Inter - Ministerial Committee, deliberations of CMDs meet and approved by CIL Board in its 279th meeting held on 12th.and 13th March, 2012. The 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 has provided multiple options to the land losers and more flexibility to the Board of Subsidiary Companies to meet unique R&R problems prevailing in the subsidiary companies. This will facilitate faster land acquisition.

16.6 Implementation of decision of the High Powered Committee

During this year, wages and social security of contractors workers were jointly deliberated and finalized based on the recommendations of High Powered Committee consisting of the representatives of Central Trade Unions. This committee was constituted in accordance with the decision taken in the meeting with Central Trade Unions held on 16.04.2010 in presence of then Honble Minister of State (I/C) & SPI and in pursuant of letter dated 28.03.2010 of Ministry of Coal.

The basic rate of wages of different categories of contractors workers engaged in mining activities w.e.f 01/01/2013 is provided bellow:

Categories of employee Basic rate (Per Day)

Unskilled Rs. 464.00

Semi-Skilled/Unskilled Supervisory Rs. 494.00

Skilled Rs. 524.00

Highly skilled Rs. 554.00

16.7 Mine Closure Plans

In terms of the guidelines issued by Ministry of Coal (MoC), CMPDI prepared 132 mine closure plans for CIL mines during the year, Quick comments on 44 mine closure plans for coal blocks sent by MoC were also prepared.

16.8 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.

17. COAL BED METHANE (CBM) / COAL MINE METHANE (CMM)

17.1 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 commercial development of coalbed methane. These projects are being implemented by CMPDI on behalf of CIL.

17.1.1 Jharia CBM Block

The Govt. of Jharkhand granted Petroleum Exploration License (PEL) to the consortium of CIL-ONGC in August 2003 for Jharia

CBM block after which the work as detailed in the Minimum Work Programme was taken up.

CMPDI has carried out deep slimhole drilling (depth range 1000 to 1400m) wherein, CBM related parametric data were generated. A report based on this drilling and other available drilling and gas related data has been prepared by CMPDI and submitted to ONGC which facilitated ONGC to drill exploratory and pilot wells.

Consequent to the completion of envisaged work in the exploratory and pilot phases, consortium of CIL & ONGC has submitted a Development Plan of the block having a budgetary outlay of Rs. 1137 crore for approval of the Government in August 2012. The development plan has been examined by a committee of CMPDI officials which found the project to be economically viable and the same was forwarded to CIL in March 2013 for taking a considered view regarding increasing stakes of CIL from 10 to 26% in terms of provisions of the Operating Agreement.

The consortium will undertake necessary developmental work after the approval of the development plan by the Government.

17.1.2 Raniganj CBM Block

The Govt. of West Bengal granted Petroleum Exploration License (PEL) for Raniganj CBM block in April 2004 after which the work as detailed in the Minimum Work Programme was taken up.

CMPDI has carried out deep slimhole drilling (depth range 800 to 1100m) wherein, CBM related parametric data were generated, A report based on this drilling and other available drilling and gas related data has been prepared by CMPDI and submitted to ONGC which facilitated ONGC to drill exploratory and pilot wells,

Consequent to the completion of envisaged work in the exploratory and pilot phases, consortium of CIL & ONGC has submitted a Development Plan of the block in October 2012 having a budgetary outlay of Rs. 957 crore for approval of the Government, The development plan has been examined by a committee of CMPDI officials which found the project to be economically viable and the same was forwarded to CIL in March 2013 for taking a considered view regarding retaining stakes of CIL upto 26% in terms of provisions of the Operating Agreement.

The consortium will undertake necessary developmental work after the approval of the Development Plan by the Government.

17.2 CBM and Shale gas related studies under Promotional Exploration during XII Plan

17.2.1 CBM related studies: CMPDI is carrying out studies related to "Assessment of Coalbed Methane Gas-in-Place Resource of Indian Coalfields/Lignite fields" through boreholes being drilled under promotional exploration (XII Plan period) under PRE funding of Ministry of Coal. This study will enlarge the CBM resource base of the country and facilitate delineation of more blocks for CBM development. A total of 60 boreholes (40 by CMPDI and 20 by GSI) are to be taken up for studies during the XII Plan Period with a total plan expenditure of Rs. 13.46 crore,

During 2012-13, 8 boreholes located in different coal/lignite fields were taken up for studies by CMPDI and samples collected for desorption and other tests.

Three reports based on CBM related studies carried out during XI Plan viz. "Assessment of CBM Gas-in-Place Resource in Sukli, Kapri block of Katol Coalfield and Mahanadi block of Talcher Coalfield" were submitted during 2012-13. Since April 2007, eleven reports have been submitted.

17.2.2 Shale gas related studies: CMPDI is carrying out studies related to "Assessment of Shale Gas-in-Place Resource of Indian Coalfields/Lignite fields" through boreholes being drilled under promotional exploration (XII Plan period) under PRE funding of Ministry of Coal. This study will create the data for assessment of shale gas potentiality and facilitate delineation of more blocks for Shale Gas development. A total of 25 boreholes are to be taken up for studies during the XII Plan Period with a total plan expenditure of Rs. 7.75 crore. During 2012-13, 4 boreholes were taken up for shale gas related studies.

17.3 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 at Moonidih mine of BCCL has already proved the efficacy of the process and five suitable areas within CIL mining leasehold areas were identified. Further, MoC has made CMPDI the Nodal Agency for development of CMM in India,

Under the aforesaid background, actions for commercial development were initiated and CMPDI, on behalf of CIL, had floated Global Tender for selection of suitable developer for commercial development of CMM in 5 identified blocks (3 in BCCL and 2 in CCL) in April 2011. However, the tender was cancelled in view of observations of MoP&NG on certain issues. The matter was resolved in a meeting held between Adviser, MoC and Secretary MoP&NG in August 2012 and a formal approval from the Govt. is awaited regarding operationalization of CMM development,

The matter was taken up with CCL and BCCL and consent of both the companies has been received,

17.4 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, SECL and further action for commercial development will be undertaken after the issue related to operationalization between MoC and Mop&NG is resolved,

17.5 Activities taken up by CBM Lab

CBM Lab has carried out the field desorption studies at the borehole sites in 8 boreholes during 2012-13 and has generated total gas content and gas composition data. In addition, studies have been carried out in 4 boreholes for assessment of shale gas potentiality.

CBM lab has also carried out Adsorption Isotherm (AI) test on 46 numbers of samples through in-house facility created in CMPDI in addition to carrying out Total Organic Carbon (TOC) analysis on 16 samples. Analysis of 928 mine air samples, received from different collieries of CCL, was also carried out and the results have been submitted.

17.6 CMM/CBM Clearinghouse in India

A CMM/CBM clearinghouse was established at CMPDI, Ranchi under the aegis of Ministry of Coal and US EPA on 17th Nov08.

The clearinghouse is functioning as the nodal agency for collection and sharing of information on CMM/CBM related data of the country and help in the commercial development of CMM Projects in India by public/private participation, technological collaboration and bringing financial investment opportunities,

The clearinghouse has been established with financial support from Coal India Ltd. on behalf of Ministry of Coal and US EPA. The 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 years term for US EPA grant of clearinghouse had been completed in Nov.11. Ministry of Coal has approved extension of term for further periods of 3 years on 31st August 2012 and US EPA has also given its consent for extension of terms of the clearinghouse.

17.6.1 Participation of CMPDI officials in GMI EXPO-13:

A high level CMPDI team comprising of CMD, CMPDI, Director (T/RD&T) and GM (CBM) along with Adviser (Projects), Ministry of Coal participated in the Expo-13 and other meetings of GMI as Government of India delegates from 12th to 15th March 2013. Government of India booth was also managed by CMPDI officials wherein posters highlighting the Government initiative in methane mitigation were showcased in addition to highlighting the opportunities of commercial development existing within CIL command areas. CMPDI team also presented the opportunities and challenges existing in the field of development of CMM.

18. Commercial development of Underground Coal Gasification (UCG) within CIL command area

CMPDI had floated tenders for commercial development of UCG in Kaitha Block (under CCL command area) and Thesgora C Block (under WCL command area). The tenders received very good response and the offers were evaluated by a duly constituted Tender Committee of CMPDI having members from coal producing companies and recommendation sent to CIL. The matter was deliberated in the meeting of Functional Directors of CIL held in July/August, 2011 wherein, CMPDI was advised for re-tendering the same after revisiting the technical evaluation criteria.

Draft TSD was prepared and sent to CIL for approval. The draft TSD was deliberated in the meeting of FDs of CIL in January 2013 wherein it was desired that the representative of CMPDI would be invited in the meeting of FDs of CIL for discussion on the matter,

19. Delineation and preparation of Data-dossiers for DGH

19.1 Preparation of Data Dossiers for CBM Round V

DGH had awarded the consultancy work of delineation and preparation of Data Dossiers on prospective CBM blocks in Cambay basin, Singrauli and Johilla Coalfields for CBM Round V to CMPDI in May 2011. Draft Data Dossiers on the identified 8 blocks were submitted to DGH in March, 2012.

The reports were initially deliberated between CMPDI and DGH officials and were finalized after the visit of a high level team of DGH to CMPDI in mid February 2013. The final reports on the blocks have been prepared by CMPDI and submitted in March 2013.

19.2 Delineation and preparation of Data-dossiers for six prospective Shale gas blocks within Gondwana Basin

DGH has assigned the consultancy work of delineation and preparation of Data Dossiers for six prospective Shale Gas blocks within Gondwana Basin to CMPDI in May, 2011. Draft Data Dossiers on Raniganj, Jharia, Bokaro, South Karanpura, North Karanpura and Sohagpur basins were submitted in March 2012.

The reports were deliberated between CMPDI and DGH officials and the reports were finalized after the visit of a high level team of DGH in mid February 2013. The final reports have been submitted by CMPDI in March 2013.

20. R&D and S&T Projects

20.1 EU funded Research Project

CMPDI is one of the participating organizations along with IIT Kharagpur from India in the multi-national/multi-organization collaborative project titled "Greenhouse Gas Recovery from Coal Mines and unminable Coal beds and conservation of Energy(GHG2E)" which has been approved under the partial funding scheme of European Union Research Commission. The balance fund has been provided under CIL R&D scheme.

The CMPDI Project team attended the review meeting on progress of the work at Imperial College, London (UK) on 5th & 6th July, 2012 wherein UNECE observer was also present. The work carried out by CMPDI was appreciated in the meeting. The assigned CMPDI work packages were submitted to Imperial College of Mining in January 2013 as per schedule.

20.2 CIL R&D Project "Assessment of prospect of shale gas in Gondwana basin with specific reference to CIL areas"

Work on CIL R&D project "Assessment of prospects of shale gas in Gondwana basin with special reference to CIL areas" is in progress and collection of shale samples for qualitative analysis has been taken up and few shale samples have been sent to lab for Shale gas specific tests. In the meantime, facility for taking up Total Organic Carbon (TOC) Analysis has been created in the CMPDI lab under this project.

In addition, areas have been demarcated for assessing the prospectivity of shale gas within BCCL and CCL areas.

20.3 S&T Project on "Shale gas potentiality evaluation of Damodar basin of India"

A new S&T project regarding Shale gas potentiality of Damodar basin of India at an investment of Rs. 16.87 crore under S&T plan of Ministry of Coal (MoC) has been approved. The basic objective of the project is to evaluate Damodar basin for their shale gas potentiality through integrated geophysical, geological, geo- chemical and petro-physical investigations.

NGRI team visited CMPDI for discussion and collected shale samples from Kapuria, Singra and Mohuda blocks of Jharia Coalfield for studies of TOC, Rock Eval Pyrolysis, Carbon isotopic signatures and Biomarker. A team of NGRI visited CMPDI during March 2013 and explored the possibility of taking up 3D seismic survey in identified areas.

21. Geological Exploration & Drilling

CMPDI continued to carry out coal exploration activities in 2012-13 also, mainly in CIL and Non-CIL/Captive Mining blocks. Exploration in CIL blocks was taken up to cater to 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 and XII plan periods. As against the achievement of 2.09 lakh metre in 2007-08, CMPDI has achieved 4.98 lakh metre in 2011-12 and 5.63 lakh metre in 2012-13, through departmental resources and outsourcing, registering a growth of 13% over previous year. For capacity expansion through modernization of departmental drills, 31 new Mechanical drills and 4 Hi-tech Hydrostatic drills have been procured, out of which 6 are deployed as additional drills and 29 as replacement drills. Supply order for 5 more Mechanical drills has been placed. CMPDI has also replaced 38 mud pumps and 46 trucks in the last four years. To meet the increasing work load, recruitment of Geologists/Mechanical Engineers was continued and 147 Geologist, 14 Geophysicist and 27 Mechanical Engineers were inducted through campus interview/open examination since 2008-09. Shortage of non-executive staff is being met through transfer of 246 employees from other subsidiaries of CIL.

Under outsourcing, the work of 36 blocks involving 13.66 lakh metre of drilling was awarded since 2008-09, out of which drilling has been concluded in 15 blocks. A long term MoU (5 Years), involving 1 lakh metre/annum of drilling, was also signed with MECL. The annual limit has further been enhanced to 1.5 lakh metres from 2012-13. 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.

21.1 Drilling Performance in 2012-13

CMPDI deployed its departmental resources for exploration of CIL/ Non-CIL blocks whereas State Govts. of MP and Orissa deployed resources in CIL blocks only. Besides, five other contractual agencies have also deployed resources for detailed drilling/ exploration in CIL/Non-CIL blocks. 115 to 140 drills were deployed in 2012-13 out of which 53 were departmental drills. CMPDI continued the technical supervision of Promotional Exploration work undertaken by MECL in Coal Sector (CIL & SCCL areas) and monitored the work of GSI for Promotional Exploration in Coal Sector (CIL area) on behalf of MoC.

In 2012-13, CMPDI and its contractual agencies took up exploratory drilling in 102 blocks/mines of 22 coalfields situated in 6 States. These coalfields are Raniganj (10 blocks/mines), Brahmani (1), Jharia (4), West Bokaro (2), East Bokaro (1), Ramgarh (2), South Karanpura (6), North Karanpura (4), Kamptee (7), Nand-Bander (3), Wardha Valley (5), Katol Basin (1), Sohagpur (7), Johilla (1), Mand Raigarh (12), Korba (3), Bisrampur (4), Sonhat (1), Tatapani-Ramkola (3), Singrauli (7), Talcher (12) and Ib Valley (6). Out of 102 blocks/mines, 35 were Non-CIL/Captive blocks and 67 CIL blocks/mines. Departmental drills of CMPDI took up exploratory drilling in 63 blocks/mines whereas contractual agencies drilled in 39 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 Ib Valley, 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 2012-13 is given below:

Agency Target Performance of Exploratory Drilling in 2012-13 2012-13 (metre) Achieved Achieved +/- (metre) (%) (m)

A.Detailed Drilling by CMPDI:

i.Departmental 2,57,000 2,76,199 107% +19,199

ii. Outsourcing:

State Govts. 8,000 7,397 92% - 603

MECL (MOU) 89,000 1,38,761 156% +49,761

Tendering (CIL blocks) 1,47,000 90,779 62% -56,221

Tendering (non- CILblocks) 81,000 49,772 61% -31,228

Total Outsourcing 3,25,000 2,86,709 88% -38,291

Total A: 5,82,000 5,62,908 97% -19,092

B. Promotional Drilling in Coal Sector:

MECL 40,250 30,594 76% -9,656

GSI 13,750 14,702 107% +952

DGM, Nagaland 500 328 66% -172

DGM, Assam 500 0 - -500

CMPDI 3000 0 - -3000

Total B: 58,000 45,624 79% - 12,376

Agency Achieved Growth Prev. Year: % 2011-12 (m)

Detailed Drilling by CMPDI:

Departmental 2,73,018 1%

Outsourching

State Govts. 6,815 9%

MECL (MOU) 96,207 44%

Tendering (CIL blocks) 17,605 416%

Tendering (non-CIL blocks) 1,04,779 -52%

Total Outsourcing 2,25,406 27%

Total A 4,98,424 13%

Promotional Drilling in Coal Sector

MECL 25,997 18%

GSI 17,872 -18%

DGM, Nagaland 289 14%

DGM, Assam 0 -

CMPDI - -

Total B 44,158 3%

*In 2012-13, a total of 3,35,342m drilling in CIL blocks and 2,27,699m in Non-CIL blocks were done

In 2012-13, CMPDI achieved its departmental and overall drilling targets by 107% and 97% respectively. The performance of departmental drilling was better than previous year with 1% growth and recorded average operational drills productivity of 434 m/drill/month. Non-availability of permission to explore in forest areas and local problems (law & order) have affected the performance of outsourced drilling. MECL could not achieve the targets of Promotional drilling in coal sector due to forest problems.

21.2 Geological Reports:

In 2012-13, 15 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 3.3 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 3.7 Billion Tonnes of coal resources, in Indicated category, above the specified thickness.

22. OUTSIDE - CIL CONSULTANCY SERVICES:

During the year 2012-13, 28 consultancy jobs were done for 20 organisations outside CIL. Some of the major clients/organisations for whom jobs were completed are Directorate General of Hydrocarbons, Manganese Ore (India) Ltd., National Thermal Power Corporation Ltd., Central Electricity Authority, Steel Authority of India Ltd., MahaGuj Collieries Ltd., Monnet Ispat & Energy Ltd, Jindal Steel & Power Ltd., etc.

Presently, 30 outside-CIL consultancy jobs are in hand for 18 organisations like Hindustan Copper Ltd., Manganese Ore (India) Ltd., National Thermal Power Corporation Ltd., Neyveli Lignite Corporation Ltd., Orissa Mining Corporation, Mahaguj Collieries Ltd., Baitarni West Coal Company Ltd., Jindal Steel & Power Ltd. Odisha Power Generation Corporation, Mahan Coal Ltd., etc.

During the year 2012-13, 32 outside-CIL consultancy jobs worth Rs. 35.08 crores from 20 organisations were received by CMPDI. This includes consultancy jobs worth Rs. 7.62 crores from M/s Odisha Industrial Infrastructure Development Corporation (IDCO) for preparation of "Comprehensive Master Plan for Talcher and Ib- Valley Coalfields.

23. RESEARCH & DEVELOPMENT PROJECTS

23.1 R&D Projects under S&T Grant of Ministry of Coal

The R&D activity in Coal sector is administered through an apex body namely, Standing Scientific Research Committee (SSRC) with Secretary (Coal) as its Chairman. The other members of this apex body include Chairman CIL, CMDs of CMPDI, SCCL and NLC, Directors of concerned CSIR laboratories, representatives of Department of S&T, Planning Commission and educational institutions, amongst others. The main functions of SSRC are to plan, programme, budget and oversee the implementations of research projects and seek application of the findings of the R&D work done.

The SSRC is assisted by a Technical sub-committee headed by CMD, CMPDI. The committee deals with research proposals related to coal exploration, mining, mine safety, coal beneficiation & utilisation and also the project proposals on mine environment and reclamation.

CMPDI acts as the Nodal Agency for co-ordination of research activities in the coal sector, which involves identification of Thrust Areas for research activities, identification of agencies which can take up the research work in the identified fields, processing the proposals for Government approval, preparation of budget estimates, disbursement of fund, monitoring the progress of implementation of the projects, etc.

Total no. of S&T projects taken up (till 31.3.2013) - 378

Total no. of S&T projects completed (till 31.3.2013) - 305

23.2 Physical performance

During the first year of XII Plan period i.e. 2012-13, 3 projects have been completed by various agencies. The status of Coal S&T projects during 2012-13 is as under:

i) Projects on-going as on 1.4.2012 14

ii) Projects sanctioned during 2012-13 04

iii) Projects completed during 2012-13 03

iv) Projects on-going as on 1.4.2013 15

Following Coal S&T projects were completed during 2012-13:

i) Development and optimization of coal bed recovery process for CO2 sequestration.

ii) Treatment of acid mine water generated in Indian coal mines using low cost material.

iii) Emission from coal based industries - development of predictive models.

23.3 Financial status

Budget provisions vis-a-vis actual fund disbursement during the period are given below:

(Rs. in crores)

2011-12 2012-13

RE Actual RE Actual

10.62 9.64 11.40 11.53



23.4 CIL R&D Projects

For in-house R&D work of CIL, R&D Board headed by Chairman, CIL is also functioning. CMPDI acts as the Nodal Agency for processing the proposals for CIL approval, preparation of budget estimates, disbursement of fund, monitoring the progress of implementation of the projects, etc.

In order to enhance R&D base in command areas of CIL, CIL Board in its meeting held on 24th March 2008 has delegated substantial powers to CIL R&D Board and the Apex Committee of R&D Board. The Apex Committee is empowered to sanction individual R&D project upto Rs. 5.0 crore with a limit of Rs. 25.0 crore per annum considering all the projects together and CIL R&D Board is empowered to sanction individual R&D project upto Rs. 50.0 crore.

So far, 69 projects have been taken up under the funds of CIL R&D Board, out of which 41 projects have been completed till March, 2013.

The status of CIL R&D Board Projects during 2012-13 is as follows:

i) Projects on-going as on 1.4.2012 - 24

ii) Projects sanctioned during 2012-13 - 05

iii) Projects completed during 2012-13 - 06

iv) Projects on-going as on 1.4.2013 - 23

Following R&D projects were completed during 2012-13:

i) GPS based production reporting system in OCP

ii) Development of CMPDIL 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.

iii) Generation/analysis of coalfield wise database of physico-mechanical characteristics of rock/coal and representative numerical models for appropriate solution to strata control problems.

iv) Development of guidelines for safe dragline dump profile under varying geo-engineering condition in opencast coal mines of Coal India.

v) Eliminating the possibility of ignition of gas and incidences of explosion in underground coal mines due to electrical faults by application of innovative technology of fault diversion.

vi) Development of indigenous tool for carrying out random sampling & testing of explosives and accessories used in mines of Coal India Limited.

The disbursement of fund for CIL R&D Projects during the year 2012-13 was Rs. 11.22 crore.

24. TELECOMMUNICATION SYSTEM

To fulfil the vision of Coal India Limited to become a Leading Global Player in energy Sector The Information & Communication Technology plays a crucial role. The Information & Telecommunication Technology has been identified as a core enabler in every aspect of Business. Aligning this function with IT strategy for overall business goal of CIL is of paramount importance. Continuous efforts are being made by CIL and its all subsidiary Companies in updating the Telecommunication & IT Solutions. In order to increase transparency, Process efficiency, optimization of 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 Tele Communication Infrastructure at Coal India Limited and its Subsidiaries encompassing all areas ,Mines,Stores,Weighbridges,and Hospitals etc. to improve its operational and financial efficiencies. A committee has been constituted for implementation.

2. GPS based Operator Independent Truck Dispatch System (OITDS) with high speed data and voice communication along with GUI is in the final stage of commissioning in all eleven high production Opencast Projects to optimize the operation of Heavy Earth Moving Equipment and to enhance the production and productivity of the Mine.

An ambitious plan to commission GPS/GPRS based Vehicle Tracking System across all other major Mines of Coal India has been taken up .After a successful development trial at Viswakarma Mine of BCCL ,formal trial order has been placed for Kusunda Area for commissioning of Vehicle Tracking System.

3. E-Auction of Coal is in vogue through Service provider of CIL. Also E-Procurement of Goods & Services, E-Filing of grievances and E-Payments to Employees/Vendors are already in operation to embark upon the business processes through IT initiatives.

In order to improve Coal dispatch, actions are being taken to connect all weighbridges with Central Server of respective Subsidiaries. Connectivity to weighbridges of BCCL ,SECL mines are in place, while at other subsidiaries, viz,ECL,CCL,MCL etc is in different stages of completion.

4. The dedicated web portal of Coal India Limited has already been established in bilingual version with features viz Employees portal, Tender Publication, Online Grievance Registration, Posting, Investor Center, Customer Corner facility. The portal also facilitates online receipt of Career Applications for recruitment and Link to E-Procurement/E- Auction Service providers. Existing Corporate Mail Messaging System has been programmed to upgrade for 19500 Users i.e. all executives of Coal India & its Subsidiary Companies.

5. Considerable progress has been made in establishing network infrastructure for better Communication facility (Surface & Underground) for faster business process & quick refund of Coal value of unlifted quantities and earnest Money as per directive of MOC using State of Art Convergent Technology.

6. In order to meet the demanding business process, State of the Art IP base EPABX with support of convergent Technology (for voice and data), Radio Communication System and UG Communication System at different locations of Coal India & its Subsidiary companies are being installed

25. MINES SAFETY

Coal India Limited has always given the highest priority towards "Safety". Safety is considered as a part of its core production process and is embedded in the mission statement. CIL has framed well defined Safety Policy and formed multidisciplinary Internal Safety Organization (ISO) in every subsidiary company as well as at CIL (HQ) to monitor implementation of CILs safety policy.

Accidents statistics is the relative indicator for safety status. Over the years, the safety performance in terms of accident rate has improved significantly,

25.1 This improvement in safety is attributed to the following factors:

- Collective commitment and synergies shown by the management and workers

- Use of advanced and updated technology in the field of mining methods, machineries and safety monitoring mechanism.

- Continuous improvement in knowledge and skill of our workforce through imparting quality training and relentless safety awareness drives.

- Strong oversight and assistances from various quarters.

Salient features of continuous and sustained improvement in CILs safety performance:

1. The average fatalities for every 5 years have shown a reducing trend since the inception of CIL in the year 1975 as is evident from the graph given below:

4. The average serious injuries have reduced more sharply than fatalities during the same period. As the figures of serious injuries are the precursor to fatal accidents and mine disaster, it indicates that there is considerable improvement in safety standards of our mines.

Details of Accident Statistics in 2012 vis-a-vis 2011:

During the year 2012, there were 53 fatal accidents and 56 fatalities in CIL mines compared to 51 and 53 respectively in 2011. Thus, the number of fatal accidents and fatalities in 2012 compared to 2011 has marginally increased. However, serious accidents and serious injuries for the year 2012 compared to 2011 have reduced significantly to 183 & 189 respectively from 242 & 256 respectively. This is the lowest serious accidents and serious injuries since the inception of CIL.

A. Overall: - Accident Statistics for CIL in 2012 compared to 2011 are given below:

Sl. No. Parameters 2011 2012

1 Numbers of fatal accidents 51 53

2 Numbers of fatalities 53 56

3 Numbers of serious accidents 242 183

4 Numbers of serious injuries 256 189

5 Fatality Rate per million ton of coal production 0.13 0.12

6 Fatality Rate per 3 lakhs manshift deployed 0.19 0.20

7 Serious injury Rate per million ton of coal production 0.60 0.42

8 Serious injury Rate per 3 lakhs man shift deployed 0.90 0.68

Note: 1. Accident Statistics are maintained calendar year-wise in conformity with DGMS practice

2. All figures are subject to reconciliation with DGMS

25.2: Major Activities of Safety & Rescue Division of CIL:

1. Inspection of mine to review safety status & follow up action thereby.

2. Prima-facie fact finding enquiry into major incidences such as mine fire, subsidence, in-rush of water, slope failure, explosion as well as major fatal accident.

3. Organizing meeting of CIL Safety Board and monitoring recommendations / suggestions made during the meeting.

4. Organizing meeting of National Dust Prevention Committee (NDPC) and monitoring recommendations / suggestions of NDPC.

5. Framing 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 for disseminating and sharing of knowledge in order to promote safety awareness and inculcate better safety culture.

8. Framing reply to 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 specialized training by SIMTARS accredited trainers to unit level and Area level executives who are directly engaged in ensuring safety in mine.

25.3 Actions taken for improvement in Safety in Mines undertaken in 2012

To improve the safety standard, CIL has vigorously pursued several measures in the year 2012 along with on-going safety related activities / initiatives apart from compliance of statutory requirements for safety, which are given below.

A. Mining Operation:

- Stress on introduction of Mass Production Technology in UG mines.

- More number of surface miner introduced to eliminate blasting operation in opencast mines to make mining operation more eco-friendly and safe.

- Introduction of High Wall Mining at Sharda Mine in Sohagpur Area of SECL

- Higher capacity HEMMs is being used.

- Mechanisation of drilling (for bolting) planned to be adopted in all mines in a phased manner,

- Phasing out of manual loading as per recommendation of 10th National Safety Conference in a phased manner

- Man Riding System (MRS) are being used in underground mines having long / arduous travel.

- Operator Independent Truck Dispatch System (OITDS) is being provided in large OCP.

B. Strata Management: Roof & Side fall is still one of the major causes of fatal accident and fatality in underground mines. Steps taken for better strata control monitoring are as follows:

- Use of more number of mechanised roof drilling machines.

- Switching over to use of resin capsules from cement capsules in a phased manner,

- Initiatives have been taken to develop device with appropriate audio-visual alarm to monitor the behaviour of overlying roof strata.

- Several roof-monitoring devices have been developed at Area / Mine level workshop and tried in underground mines.

C. Spontaneous heating, fire & explosion in mine:

- Expedite construction of sectionalisation stoppings.

- Fresh Pressure Quantity(PQ) Survey for checking efficacy of ventilation

- Initiated action to introduce more number of Gas Chromatographs in addition to conventional method of mine air sampling

- Use of Local Methane Detector (LMD) for early and accurate detection of methane.

D. Opencast Safety:

- Slope Stability Radar (SSR) are being installed in large OCP

- Training Simulator for training of dumper operators.

- Installation of Proximity devices in dumpers

- Using rear view camera in tippers and dumpers

E. Safety R&D initiatives at CIL (HQ) level:

- Construction of quick setting stopping in case of fire in UG mines by using expansion foam agent.

- Development of notch cutting machine to facilitate speedy cutting of recess for construction of stopping in UG.

- Eliminating the possibility of ignition of gas and incidences of explosion in UG mines due to electric fault by application of innovating technology of fault diversion.

F. Occupational Health Services:

- Computerization of health records / Medical history of employees for effective medical care.

- Organizing Wellness Clinic at different subsidiary,

- Free health examination of all the contractual workers.

- Organizing Conference on Occupational Health to enhance awareness.

G. Safety Training & Others:

- Training programme was arranged by CIL with SIMTARS, Australia to develop trainer for imparting safety training. 20 executives were trained (10 each for UG and OC mines). These executives are being used for imparting the specialized training on "Preparation of Safety Management Plan (SMP) based on Risk Assessment". So far, 1412 executives from 446 mines of different subsidiary companies of CIL have already been trained and these trained unit / mine level executives are imparting further training to supervisor and workers of grass root level for disseminating the knowledge and skill. Risk assessment Safety Management Plan (SMP) based on training imparted by SIMTARS accredited trainers is under process in all mines of CIL and completed in 197 mines of CIL.

- Digitization of mine plan.

- Introduction of LED type light weight cap lamp

26 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.

27. HUMAN RESOURCE DEVELOPMENT

27.1 Overall Performance

HRD performance was more than MoU Target. CIL and its subsidiaries have trained 58541 employees during 2012-13, out of which 18560 were executives and 39981 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.

27.2

i) 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 of employees within the subsidiary. Special attention was given for improving skill of the employees keeping in mind the need of the Industry. Details of in-house Training are listed below:-

Category Training Short Training Workshop/ Total Seminar

Executive 6229 4654 5006 15889

Non-executive 28718 9409 660 38787

Total 34947 14063 5666 54676

ii) Training Outside Company (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. The break-up is given below:-

Category Training Short Training Workshop/ Total Seminar

Executive 1390 847 402 2639

Non-executive 800 65 329 1194

Total 2190 912 731 3833

iii) Training Abroad

Coal India had sent 32 executives viz. 11 for training and 21 for Seminarconference to different countries from subsidiary companies and CIL (HQ) during the year 2012-13.

27.3 Initiatives

- CIL has been recruiting fresh and dynamic young bloods in different disciplines for the last few years. This year, 1454 Management Trainees (Direct recruitment through examination 785 & through campus selection 669) have been recruited in all major disciplines. 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 at IICM with the reputed faculties. Special attention has also been given in tuning them in their respective specialized working areas by on-the-job training throughout the year. Their probation is closed after appearing for the examination at the end of first year successfully.

- As MTs of Excavation and E&M disciplines are posted in different Coal Mines, to provide them proper exposure to Mining Operations as well as Mining Equipments (both surface and underground) 5 weeks intensive training in different batches for a total of 289 MTs was organized at Indian School of Mines, Dhanbad, the premier Mining Institute of our country.

- 2 senior executives were sent to Japan to attend 8 days training programme on "Clean Coal Technology

- 5 middle level executives were sent to China to attend 20 days training programme on "Fully Mechanized Coal Mining Technology 2012"

- 72 executives have been given certified training in Project Management at IICM and other renowned Institutes.

- 60 executives have been given certified training in Contract Management at IICM and other reputed Institutes.

- Six months Advanced Certificate Course on Business Valuation & Corporate Restructuring was organized in association with The Institute of Cost Accountants of India for 11 finance executives of CIL Hqrs.

28. MANPOWER

28.1 The total manpower of the Company including its subsidiaries as on 31.03.2013 is 3,57,926 against 3,71,546 as on 31.3.2012. Subsidiary company wise position of manpower is as below :-

Company As on Total

ECL 31.03.2013 74276

31.03.2012 78009

BCCL 31.03.2013 61698

31.03.2012 64884

CCL 31.03.2013 48126

31.03.2012 50026

WCL 31.03.2013 54960

31.03.2012 56989

SECL 31.03.2013 73718

31.03.2012 76078

MCL 31.03.2013 22065

31.03.2012 22023

NCL 31.03.2013 16073

31.03.2012 16329

NEC 31.03.2013 2376

31.03.2012 2538

CMPDIL 31.03.2013 3142

31.03.2012 3129

DCC 31.03.2013 551

31.03.2012 562

CIL(HQ) 31.03.2013 941

31.03.2012 979

CIL as a whole 31.03.2013 357926

31.03.2012 371546

28.2 The presidential directives for Scheduled Caste/Scheduled Tribes/OBC have been implemented in all the subsidiaries/units of Coal India Limited.

The representation of SC/ST employees in total manpower of CIL and its Subsidiary Companies as on 1.1.2012 and 1.1.2013 are given below :-

As on Total Scheduled Caste Scheduled Tribe Manpower Nos. Percentage Nos. Percentage

1.1.2012 374650 77885 20.79 45424 12.12

1.1.2013 361348 74780 20.69 43342 11.99

29 INDUSTRIAL RELATIONS AND EMPLOYEES PARTICIPATION IN MANAGEMENT

The Industrial Relations scenario in CIL & its subsidiaries during the year remained cordial. JCCs and different Bipartite Committees at Unit/Area levels 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

2011-12 2012-13 2011-12 2012-13

ECL 2+0 2+1 31 6

BCCL 2+0 2+1 5 7

CCL 2+0 2+1 110 61

WCL 2+0 2+1 0 2

SECL 2+0 2+1 0 0

NCL 2+1 2+1 0 12

MCL 2+0 2+1 0 0

NEC 2+0 2+1 0 0

CMPDI 2+0 2+1 0 0

CIL 2+0 2+1 0 0

Total 2+1* 2+1 146 88

Company Mandays lost Production Lost

2011-12 2012-13 2011-12 2012-13

ECL 41462 27427 71000 24100

BCCL 6935 7557 9825 19700

CCL 30801 4165 118976 00

WCL 32937 40366 90976 201800

SECL 49563 56571 93362 239000

NCL 10843 1769 116000 73500

MCL 16758 1617 309300 00

NEC 1737 198 600 00

CMPDI 1347 677 503 00

CIL 00 60 00 00

Total 192383 140407 810542 558100

Bandh- On 31.5.2012, All Political Parties called 24 hours Bharat Bandh on political issue/price hike.

Strike - 2 days All India General Strike on 20th & 21st Feb.,2013 called by INTUC, AITUC, CITU, HMS & BMS over the National issues

30. EMPLOYEES WELFARE AND SOCIAL SECURITY SCHEMES EMPLOYEES WELFARE

The focus of Welfare Activities is the well-being of 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, sports & cultural facilities etc.

1) Structured Sports Policy of CIL and its subsidiaries, Memorandum of Association and Regulation and Registration under West Bengal Societies Registration Act 1961 have been framed and approved by CIL Board.

During 2012-13 initiative was taken for preparation of structured Sports Policy of CIL and its subsidiaries, Memorandum of Association and Regulation and Registration under West Bengal Societies Registration Act 1961 which was approved by CIL Board in its 296th meeting held on 25th March 2013.

The objective of the policy are as under:-

a) To formulate the policy for promoting excellence in sports at State, National/International levels and use these efforts as a vehicle to enhance the image of the company through the sports persons as Brand Ambassador,

b) To promote, develop and control the various Sports/ Recreational/Cultural activities & to foster the spirit of sportsmanship and solidarity amongst the employees of Coal India and its subsidiaries.

c) To advise and assist in the improvement and construction of sports Academy/grounds/ Clubs/Auditorium & to allocate funds for various Sports Activities within Coal India and its subsidiaries.

d) To conduct and support various sports Meets & other sports activities within CIL and its subsidiaries as well as outside the Company, by either sponsoring such activities or by inviting outstanding sports persons to participate in combined Coal India Teams.

e) To affiliate itself to National Sports Federations/Associations and other appropriate institutions in sporting/recreational/ cultural activities & to act as a Central Body.

f) To recommend to CIL Management, regarding recruitment of young, promising and outstanding sportspersons and promotion of existing reputed players associated with CIL and its subsidiary companies.

g) To raise national level teams in identified games through scientific coaching, providing state-of-the-art equipment and infrastructure.

h) To generate corporate goodwill and brand equity by sponsoring / co-sponsoring various sports/ games events at State, National and International level.

i) To liaise with National and State Association / Bodies/ Federations promoting sports, games and cultural activities within India with a view to further sports centric objectives of the Company.

2) Implementation of Revised Contributory Post Retirement Medicare Scheme for Executive (CPRMSE) of CIL and its subsidiaries.

a) Board of Directors of CIL in its 289th Meeting held on 18.09.2012 has approved the modifications/additions in the Contributory Post Retirement Medicare Scheme for Executives of CIL and its Subsidiaries (CPRMSE).

The reimbursement charges for hospitalization (Indoor treatment) as per CPRMSE has been enhanced to Rs. 25 Lakhs or Rs. 12.5 Lakhs as the case may be with immediate effect. There will be no limit for specified diseases as mentioned in Clause 3.2.1 (d) of the Scheme, which will not be accounted against the amount of Rs. 25 lakhs or Rs. 12.5 Lakhs as the case may be.

Further, annual charges for domiciliary/Outdoor treatment expenses has also been raised from Rs. 7,500/-, Rs. 10,000/- to Rs. 15,000/- payable in two instalments.

The Contributory Post Retirement Medicare Scheme for Executives of CIL and its Subsidiaries (CPRMSE) as modified is published in website www.coalindia.in

b) 1534 CPRMSE Registered Medical Card has been issued as on 31.03.2013, out of which 241 additional registered Medical Card issued to the retired executives for Outdoor/ domiciliary treatment as well as Indoor treatment.

3) HOUSING:

At the time of nationalisation, there were only 1,18,366 houses including sub-standard houses. The availability of these houses has increased to 3,99,329 (as on 31.03.2013). The percentage of housing satisfaction has now reached 100%.

4) WATER SUPPLY:

As against 2.27 Lakhs population having access to potable water at the time of Nationalisation, presently a populace of 21.17 Lakhs (as on 31.03.2013) has been covered under water supply scheme.

5) 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, 411 Dispensaries, 664 Ambulance and 1426 Doctors including Specialists in CIL and its subsidiaries to provide medical services to the employees. Besides 11 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.

More over, medical facilities are provided to the peoples residing in and around mines premises of the subsidiary companies of CIL.

6) 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.

Coal India Scholarship Scheme (Revised - 2001)

In order to encourage the wards of employees of Coal India Limited, two types of Scholarship namely Merit and General Scholarship, are being provided every year under the prescribed terms and conditions.

Scholarship:

No. of students, who have been getting Scholarship and No. of students of IIT, NIT and short listed Institutions, whose tuition fee and Hostel charges are reimbursed are as under:-

Company No. of Scholarship No. of students in IITs, Awardees NITs and others

ECL 1165 61

BCCL 1502 17

CCL 1520 16

WCL 4936 97

SECL 3196 198

MCL 1508 56

NCL 956 105

CMPDIL 327 24

Total 15110 574

Grant sanctioned for Schools:

Company Amount (Figs. in Lakh Rs.)

ECL 30.00

BCCL 85.50

CCL 1984.00

WCL 888.00

SECL 4238.00

MCL 1551.17

NCL 28.23

CMPDIL 1.00

Total 8805.90

7) 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

8) 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.

9) Banking Facilities:

The Management of Coal Companies are providing infrastructure facilities to the various Nationalised Banks for opening their Branches and Extension Counters in the Coalfields for the benefit of their workers. Workers are educated to draw their salaries through 463 Bank branches/ Extension Counters and they are also encouraged to practice thrift for the benefit of their families.

10) Welfare, Development and Empowerment of Women

In Coal India Limited there is a Forum for Women in Public Sector Cell at Company Headquarter- Kolkata and five subsidiary companies viz. ECL, BCCL, CCL, SECL & CMPDI. Each WIPS Cell is headed by a Coordinator who plans and executes various activities of the Forum with the help of a duly appointed Executive Committee. The company extends active support to various activities of WIPS comprising of welfare activities, training & development activities, seminars, cultural programmes, industrial awareness visits, health awareness programme etc for the WIPS members, women workers, their families and society at large.

Coal India Ltd and its subsidiary companies are extending full fledged support and patronage to 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. As a matter of fact, in previous years SECL, ECL & BCCL have won the coveted award for outstanding women oriented/gender friendly activities. In recent years, WIPS cell have done commendable work in reaching out to the grassroot level women employees, empowering them by suggesting gainful redeployment, training and uplifting their morale by recognizing outstanding achievement, recognizing and honouring the exceptional talent.

11) Corporate Social Responsibility (CSR):

Coal India Limited has a well-defined CSR policy based on the guidelines issued by Department of Public Enterprise for Central PSUs on CSR, which is also applicable in respect of subsidiary companies of CIL. The CSR policy is operational within the radius of 25 KM of the project site and areas including Head Qtrs. Further CSR activities are also undertaken beyond mining areas within the respective state with the approval as per norms. CIL being a holding company, execute CSR activities which are beyond the jurisdiction of subsidiary companies

The annual budget for CSR is allocated based on 5% of retained earnings of previous year subject to minimum of Rs. 5 per tonne of coal production of previous year. In respect of CIL 2.5% of retained profit of last year is allocated for execution of CSR activities. During 2012-13, an amount of Rs. 595.74 Crores (including spill over) has been allotted for undertaking CSR activities of Coal India Limited and its subsidiaries.

12) Special Cash Award:

During 2012-13, an amount of Rs. 1,64,000/- has been provided as Special Cash Award to 30 meritorious Sons and Daughters of employees of CIL(Hqrs.), Kolkata Desk Offices of subsidiary companies and Dankuni Coal Complex 7,000/- for seven(07) students who have secured 90% or above marks in Class-XII Board level examination and 5,000/- for twenty-three (23) students who have secured 90% or above marks in Class-X Board level examination.

13) Recreational facilities:

Apart from the existing Holiday Homes running at Puri, Digha, Goa, Manali, Katra, Ajmer, Nainital, Haridwar, Gangtok, Pelling and New Delhi, Darjeeling has also been included in the list during 2012-13 which are available to the employees of CIL and its subsidiaries at a subsidized rate.

14) CIL Welfare Board Meeting.

40th meeting of Coal India Welfare Board was held on 4th May 2012 at Bangalore with the Central Trade Union Representatives and the representatives of the Management to discuss and decide regarding welfare policies, implementation of different welfare scheme in CIL and its subsidiaries.

31. TREE PLANTATION/ AFFORESTATION.

In order to improve the environment, Coal India Limited and its subsidiaries have planted 15.86 lakhs tree saplings during 2012-13 in the Coalfields under plantation/ afforestation programme. In total, subsidiaries of Coal India limited have planted around 78 million of plant over a land area of over 33700 ha upto 31st March, 2013.

32. PROGRESSIVE USE OF HINDI.

Coal India Limited continued its efforts to propagate and spread the progressive use of Hindi during the period under review. The management of Coal India Limited is committed to implement the provisions of Official Languages Act, Rules and Regulations. For this, periodical meetings and reviews are being conducted regularly.

With a view to create working atmosphere in Hindi and to remove hesitation of officers and employees to work in Hindi, Hindi Workshops were organized regularly. During the year, substantial number of persons participated in such workshop, to refresh their knowledge in Hindi Words, Hindi noting & drafting in their regular official works.

As per directives of Govt. of India, Hindi Divas was celebrated on 14th September 2012 at Coal Bhawan. Starting from 14th September, Hindi Fortnight was observed in all offices of Coal India Ltd. During the fortnight Hindi competitions such as Hindi Noting- Drafting, Hindi Essay, Hindi Dictation, Hindi Translation & Hindi Computer Typing were organized where large no. of employees participated enthusiastically. The winners were honoured with Cash awards & certificates. This brought collective awareness towards use of Rajbhasha in Official Works. The Regional Sales Offices situated in different cities were granted sufficient fund to celebrate Hindi Divas & Hindi Week/Fortnight as per their practice. In order to promote Hindi HASYA KAVI SAMMELAN was organized on 07.12.2012 at Rohini Housing Complex, Ultadanga, Kolkata where large number of members were present.

With a view to promote Hindi knowledge among the employees, 10 sets of 09 reputed Hindi magazines are being distributed to different departments/sections. Each & every computer has a facility to work bilingually. "Smirity Puraskar Yojna" has been introduced in CIL HQ including subsidiaries/subordinate offices to promote the Official use of Hindi.

Inspection of offices is also a part of implementation. The 3rd sub committee of Committee of Parliament on Official Language inspected CIL Delhi office on 29.06.2012 to oversee the status of use of Hindi in Official work. In addition, the officials of Rajbhasha

Vibhag, Coal India Ltd. have also inspected some subordinate offices with a view to oversee the status of the implementation of Official Language. The shortcomings seen during the inspection were corrected & concerned officials were advised to do more work in Hindi as per the instruction given in the Annual Programme.

Another feather in the cap during the period under review is that Coal India Ltd bagged second 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 30.08.2012. Coal India Ltd has been awarded "Rajbhasha Shiromoni" shield Samman in the field of the best performance towards implementation of Rajbhasha in accordance with the Official Languages Act & Rules by Bhartiya Bhasha Awan Sanskriti Kendra, Delhi on 31.10.2012 at Guwahati.

33. VIGILANCE SET UP

During the year 2012-13, 29 Intensive Examination of Works/ Contracts were undertaken by CIL and its subsidiary companies. In addition, 226 Surprise Inspections were carried out and 460 investigation cases were completed. Besides, 86 Departmental Inquiries were disposed of which resulted in punitive action against 158 officials of CIL and subsidiary companies. Such examinations/investigations have resulted in initiation of various system improvement measures.

As per directives of Central Vigilance Commission, Vigilance Awareness Week - 2012 (VAW- 2012) has been observed at CIL Hqrs., Kolkata from 29.10.2012 to 03.11.2012. The pledge was read in the Board meeting held on 19.10.12. System Improvement Suggestions were invited from all employees and the suggestions received were analysed and examined. Banners and Posters were specially designed and published for Vigilance Awareness Week and displayed on important locations in all departments. On 31.10.12, Group discussion on "Promotion of transparency and objectivity in awarding contracts/ works /services/tenders etc" was organized at different departments of CIL, with an aim to enhance the transparency in procurement process in organisation. In house contest/ competition were organized and entries received from employees and their family members of different departments of CIL HQ, IICM, NEC and RSOs during the VAW-2012 for Creating a Slogan and Essay writing competition. On 02.11.12, an Open Interactive Session with special emphasis on this year theme "Transparency in Public Procurement" was held. During the session Chief Guest and others deliberated the importance to ensure transparency and strict adherence to laid down guidelines and procedures for public procurement of goods, works and services. During the session, a presentation on Salient features of Public Procurement Bill, 2012 tabled in Parliament, was made by CVO, CIL.

Whistle Blower Vigilance Complaint At Coal India limited :

The Whistle Blower Vigilance Complaint (WBVIG), a web based complaint/grievance handling system of Vigilance Division, Coal India Limited has been set up for disclosure on any allegation of corruption or misuse of office where identity of the complainant is kept secret. This is based on GoI resolution on Public Interest Disclosure and Protection of Informer (PIDPIR), popularly known as Whistle Blower policy. The introduction of this system strengthens the complaint handling mechanism of CIL, Vigilance Division without any additional infrastructure and also encourages the stake holders to participate in anti corruption efforts. This also supports the green initiatives and technology leveraging for achievement of organizational goals.

34. PARTICULARS OF EMPLOYEES.

No Employee had received remuneration during the year 2012-13, 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.

35. BOARD OF DIRECTORS

Shri S.Narsing Rao assumed the charge of Chairman cum Managing Director of the company from 24th April 2012. Ms. Zohra Chatterji, Additional Secretary, MoC was holding the additional charge of Chairman cum Managing Director, CIL from 01.02.2012 and continued till 23rd April 2012.

Shri R.Mohan Das, Director (P&IR), Shri N.Kumar Director (Technical) were on the Board throughout the year. Shri A.K.Sinha, Director (Finance) continued till 31st Oct 12. Shri B.K.Saxena assumed the charge of Director (Marketing) with effect from 19th June 2012. Shri A.Chatterjee assumed the charge of Director (Finance) with effect from 1st November 2012.

Ms. Zohra Chatterjee, Additional Secretary, MoC continued as a part-time official Director on the Board till 1st February 2013 Ms. Anjali Anand Srivastava, Joint Secretary & Financial Advisor, continued as a Part Time Director 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 & Dr. Mohd. Anis Ansari continued as Independent Directors.

Shri D.C.Garg, CMD, WCL continued as a permanent invitee on the board throughout the year. Shri A.K.Singh, CMD, CMPDIL continued as a permanent invitee till 31st July 2012.Shri D.P.Pande has been appointed as a permanent invitee on the board with effect from 12th July 2012 and continued as a permanent invitee for the balance period of financial year.

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.

The Board of Directors held 15 meetings during the year 2012-13.

36. 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 2012-13), 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.

37. 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.

38. COST AUDIT

In pursuant to the directions of Central Govt. for conducting Cost Audit of Cost Records, the proposal for appointment of M/s S.P. Bhattacharya & Co., Cost Accountants as Cost Auditor of your company for the year 2012-13 was approved by the Central Govt. and they have accordingly been appointed. The Cost Compliance Report for the year 2011-12 was filed by your company on 9th January 2013.

39. B.I.F.R AND BRPSE STATUS

39.1 Eastern Coalfields Limited (ECL)

As on 31st March, 1997 accumulated losses of the company exceeded its networth by Rs. 251.20 crores. Hence company was referred to BIFR in October, 1997 in terms of Section 15(1) of SICA. Due to financial restructuring done by CIL on 31st May 1998 by converting unsecured loan of Rs. 1179.45 crore into equity, the net worth of the company became positive as on that date and company came out of BIFR. Since the company continued to incur losses year after year, the networth of the company again became negative as on 31st March, 1999 and the company was again referred to BIFR in November, 1999. Companys case was registered as case no. 501/2000.

In the 237th ECL board meeting held on 5th August, 2010 ECL board approved a Draft Modified/Revised Proposal (DMRP) - June, 2010 for revival of ECL. BRPSE reviewed the ECLs case on 27th August, 2010. Company presented the DMRP (June, 2010). BRPSE advised the company to revise the physical and financial projections by exploring the possibility of advancing the project completion to enable the company to come out of BIFR earlier. Hence the revised DMRP (November, 2010) was prepared with a cut-off date of 31st March, 2010. As per DMRP (November, 2010) the company was expected to come out of BIFR in 2014-15. The revised DMRP (November, 2010) was submitted to BIFR in its meeting held on 22nd November, 2010. As advised by BIFR, the Monitoring Agency got the TEV study conducted by a consultant.

In the hearing held on 08.06.2011, BIFR directed the company to serve a copy of DMRP and TEV Report to all the stake holders, advised MA to call a joint meeting of all the stakeholders within four weeks and submit a report 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 with.

As advised by BIFR in its hearing were held on 02.09.2011, DMRP September, 2011 was submitted. 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 implement the revival plan and it is expected that the company will come out of BIFR by 2015-16.

39.2 Bharat Coking Coal Limited (BCCL)

BCCL was referred to BIFR, consequent upon its net worth becoming negative and registered as a Sick Company vide case No. 504/95 dated 18.12.95. Subsequently, with a capital restructuring through conversion of CIL loan of Rs. 996 Cr. into Equity, the net worth of the company was made positive and the Company came out of BIFR in December 1997. However, after completion of accounts for the year 1999-2000, the net worth of the company again turned negative. The company was referred to BIFR and registered as a sick company as case no 502/2001.

As directed, BCCL submitted its Revival Plan to BIFR on 12.04.2004 for its consideration. Subsequently, after formation of BRPSE, 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.

In its hearing held on 18.05.2009, BIFR directed BCCL to submit updated Revival Scheme/ Proposal for revival of BCCL. Accordingly an updated Draft Rehabilitation Scheme (DRS) was submitted to BIFR on 11.08.2009. The said Draft Rehabilitation Scheme was approved by BIFR on 28.10.2009 and the same has also been vetted by MOC. A review hearing was held on 28.09.2010 on the progress of implementation of the Revival Plan. In the said hearing, the BIFR directs the company to submit the compliance report(s) from time to time on quarterly basis.

Chronology of events leading to the exit from BIFR during 2012-13

In its hearing held on 3rd Jan13 BIFR issued the following directives:

(a) The Company M/s Bharat Coking Coal Ltd. (Case No.502/2001) ceases to be a sick industrial company within the meaning of Section 3(1 )(o) of the SICA as its net worth has turned positive, and Statutory auditor has also confirmed this, therefore, the Bench discharged the captioned company from the purview of SICA/BIFR.

(b) Unimplemented provisions of the Sanctioned Scheme, if any would be implemented by all concerned.

(c) All creditors, Statutory Authorities are at liberty to recover their dues, if any, according to Sanctioned Scheme.

(d) The Special Director, if any, appointed by the Board on the Companys Board of Directors (BOD) would stand discharged with immediate effect.

(e) The Company would complete necessary formalities with the concerned Register of Companies (ROC) as may be required.

After the above discharge by BIFR, the implementation was required for "Waiver of the loan of Rs. 1083 Crores and current account balance of Rs. 1456 crores as well as interest on other loans in the year in which BCCL shall be consequently enabled to report a positive net worth" as per the Sanctioned scheme and the directives of BIFR. BCCL Board at its meeting held on 19th March, 2013 approved conversion of Rs. 2539cr loan into 5% non- convertible, cumulative redeemable Preference shares along with amendment of Clauses no. 5 and 15, of the Articles of association and clause V of the Memorandum of Association of the Company,

CIL Board in its 296th meeting held on 25th Mar13 approved issuance of 5% non-convertible, cumulative, redeemable Preference shares of the face value of Rs. 1000/- each with following conditions:

(a) The preference shares are to be redeemed at the expiry of 7 years from the date of issue and allotment. However, CIL would have the option to redeem at any time after the expiry of 5 years from the date of issue and allotment of the shares.

(b) Redemption of preference shares at the face value (no redemption premium ) ; and

(c) Annual cumulative dividend is 5%.

BCCL at its 15th EGM held on March 26, 2013 approved the amendment of the aforesaid clauses of the Article of Association and Memorandum of Association. EGM also approved

(a) Increase in Authorised Capital by Rs. 2600 crore by issue of Preference Shares ; and

(b) Issue of Rs. 2539 crore preference shares in favour of CIL for an aggregate consideration equivalent to the amount of the funds (waiver) by BCCL to CIL.

BCCL Board at its meeting held on 26.03.2013 approved issue and allotment of 5% non convertible Cumulative Redeemable Preference Shares to CIL. Taking into effect allotment of issue of Preference Share, the net worth of the Company turns positive and the directive of Honble Bench of BIFR is complied and an intimation in this regard was also sent to BIFR on 02.04.2013.

40. ACKNOWLEDGEMENT:

The Board of Directors of your Company wishes to record their deep sense of appreciation for the sincere efforts put in by the employees of the company and the Trade Unions. Your Directors also gratefully acknowledges the co-operation, support and guidance extended to the company by various Ministries of the Government of India in general and Ministry of Coal in particular, besides the State Governments. Your Directors also acknowledge with thanks the assistance and guidance rendered by the Auditors, the Comptroller and Auditor General of India and the Registrar of Companies, West Bengal and wishes to place on record their sincere thanks to the Consumers for their patronage.

41. ADDENDA

The following are annexed.

i) The comments and review of the Comptroller and Auditor General of India.

ii) Replies to the observations made by the Statutory Auditors on the Accounts for the year ended 31st March, 2013.

iii) Statement pursuant to Sec. 212(i) (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 2012-13 (Annexure IV).

For and on behalf of the Board of Directors S. Narsing Rao

Chairman

Kolkata, 1st July, 2013


Mar 31, 2012

To The Members of Coal India Limited.

The behalf of the Board of Directors, I have great pleasure in presenting to you, the Thirty-Eighth Annual Report of Coal India Limited (CIL) and Audited Accounts for the year ended 31 st March, 2012 together with the reports of Statutory Auditors and the Comptroller and Auditor General of India thereon.

Coal India Limited (CIL) is a Maharatna Public Sector Undertaking under the Ministry of Coal, Government of India with headquarters at Kolkata, West Bengal. CIL is the single largest coal producing company in the world and the largest corporate employer with a manpower of 3,71,546 (as on 1st April, 2012). CIL operates through 81 mining areas spread over 8 provincial states of India. Coal India has 467 mines of which 273 are underground, 164 opencast and 30 mixed mines. CIL further operates 17 coal washeries, (12 coking coal and 5 non-coking coal) and also manages 200 other establishments like workshops, hospitals etc. CIL has 27 training Institutes. Indian Institute of Coal Management (IICM) as a Centre of Excellence operates under CIL and imparts multi disciplinary Management Development Programmes to executives. Coal Indias major consumers are Power and Steel sectors. Others include Cement, Fertilizer, Brick Kilns, and a host of other industries.

During the year the company continued to have eight fully owned Indian subsidiary companies viz.:

Eastern Coalfields Limited (ECL),

Bharat Coking Coal Limited (BCCL),

Central Coalfields Limited (CCL),

Western Coalfields Limited (WCL),

South Eastern Coalfields Limited (SECL),

Northern Coalfields Limited (NCL),

Mahanadi Coalfields Limited (MCL) and

Central Mine Planning & Design Institute Limited (CMPDIL).

In addition, CIL has a foreign subsidiary in Mozambique namely Coal India Africana Limitada (CIAL).

The mines in Assam i.e. North Eastern Coalfields continue to be managed directly by CIL. Similarly, Dankuni Coal Complex also continues to be on lease with South Eastern Coalfields Limited during the year under review.

MCL has two subsidiaries viz. MNH Shakti Ltd. and MJSJ Coal Ltd. with 700/c and 60 % equity holding respectively.

1. NOTABLE ACHIEVEMENTS

1.1 Maharatna Status

Coal India Limited was granted the Maharatna status on 11th April, 2011 by the Government of India thus becoming only the 5th PSU in the country, of a total of 215 Central Public Sector Enterprises (CPSEs), to have been conferred with this status. Government of India has introduced the Maharatna scheme in February 2010 for Central Public Sector Enterprises, in order to empower the mega CPSEs to Expand their operations and emerge as global giants. The objective of Maharatna is to delegate enhanced powers to the Boards of the identified large Navratna CPSEs, fulfilling the specified criteria, to facilitate expansion of their operations both in domestic as well as global markets.

1.2 Coal India joins Sensex

Coal India made it to the 30-stock Sensex, on 8th August 2011, globally considered to be the barometer of the Indian economy, in a short span of nine months since its listing on 4th November 2010. No other company has made it to the index in such a short time. And then, Coal Indias raise to the top came in just seven trading sessions since its entry to SENSEX. This is considered to be a remarkable accomplishment.

1.3 Most Valued Company in the country

On 17th August 2011, Coal India emerged as the Most Valued Company in the country in terms of Market Capitalization - the pinnacle of success every business entity dreams of and aspires for. The companys value stood at a whopping Rs 2,51,296 Crores. What made the achievement all the more significant was that a public sector company could attain such lofty heights.

1.4 CMPDI in a gas recovery project

Central Mine Planning and Design Institute (CMPDI) the Ranchi based mine consultancy subsidiary of Coal India Limited has been identified for participation in a Green House Gas recovery from coal mines and un-mineable coal beds and conversion to energy (GHG2E) - an EU funded Research Project from India along with Indian Institute of Technology, Kharagpur.

The basic objective of the project is to contribute to global greenhouse gas reduction by controlling methane emission from coal mines and maximizing utilization of produced methane. Moonidih and Sudamdih mines of BCCL have been considered for taking up this research project. The total time schedule for the project is 42 months. Officials from CMPDI participated in the kick-off meeting held in Slovakia from 6th - 9th Oct/11. A team comprising of Prof. Sevket Durucan of Imperial College of Engineering, London and Prof. K Pathak of NT, Kharagpur and other representatives of both the institutions visited CMPDI on 16th Nov 2011 and discussed in details regarding the implementation of the project. The team along with CMPDI officials also visited Moonidih mine and BCCL for detailed discussions. CMPDI has received an advance payment of € 47,867.35 for the Project.

1.5 Finalization of National Coal Wage Agreement IX

Coal India Limited (CIL) on 31st January 2012, finalized the wage agreement for its 3.63 Lakh strong non-executive work force by giving a 25% increase on gross wages as of 30 June 2011 .The wage hike that would be effective retrospectively from 1 July 201l is for a five-year period.

1.6 Pays Highest Interim Dividend to the shareholders

On 23rd March2012, CIL Directors presented a cheque of Rs 5,400.49 Crores towards the Interim Dividend for the fiscal 2011-12 to Shri Sriprakash Jaiswal, Honble Union Minister of Coal, Government of India, in New Delhi in presence of Shri Alok Perti, the then Secretary, Ministry of Coal and other senior officials of MoC.

The amount of Rs 5,400.49 Crores, the highest ever, Interim Dividend paid to Government of India so far, constitutes 900/c of the total interim dividend of Rs 6,000.55 Crores for the fiscal 2011 -12.The rest 1 Wo (Rs600 Crores) was distributed amongst the shareholders of the company. This is at the rate of Rs 9.50 per share against Rs 3.50 paid in the previous fiscal registering an increase of 171.40/c.

1.7 Awards & Accolades for Coal India Limited in 2011-12

BagsCompany of the Year Award

Coal India Limited was conferred the coveted "Company of the Year Award" by Indian Chamber of Commerce and Department of Public Enterprises (DPE) on 19th September 2011 at 2nd Summit on India Public Sector Agenda @2020 at New Delhi.

MoU Excellence Award

Coal India Limited received the MoU Excellence Award for Outstanding rating for the year 2009-10 in New Delhi, on 31st January 2012 in a formal awards function MoU Excellence Awards/SCOPE Excellence Awards for outstanding contribution to the Public Sector Management organized by Department of Public Enterprises (DPE), Ministry of Heavy Industries & Public Enterprises.

India Pride Award 2011

Coal India Limited was conferred with "India Pride Award 2011" for the second consecutive year. CIL received the Gold Trophy in Energy & Power category. The award presented by Shri Montek Singh Ahluwalia, Deputy Chairman, Planning Commission of India, was received by Shri N.C. Jha, the then Chairman, CIL in a formal award ceremony in New Delhi on 21st October 2011.

India Pride Awards have been initiated by a leading Hindi language media house and DNA - the English language news daily, aimed to recognize the outstanding contribution made by PSUs and individuals in different areas towards promoting efficiency and to encourage and motivate the individuals to achieve higher goals. The evaluation for the awards was done by ICRA, based on various business results.

2. FINANCIAL PERFORMANCE

2.1 Financial Results

CIL is one of the largest profit making and tax & dividend paying enterprises. CIL and its subsidiaries has achieved an aggregate pre-tax profit of Rs 21,272.66 crores in the year 2011-12 against a pre-tax profit of Rs 16,463.24 crores in the year 2010-11 registering a growth of 29.21 o/o over earlier year.

(Figures in Rs crores)

2011-12 2010-11

Company Profit Profit

ECL (+) 962.13 (+) 106.57

BCCL (+) 822.36 (+) 1093.69

CCL (+) 1970.24 (+) 1860.22

NCL (+) 4265.67 (+) 3956.36

WCL (+) 440.50 (+) 1067.98

SECL (+) 6002.87 (+) 3777.12

MCL (+) 5463.69 (+) 4039.30

CMPDIL (+) 30.79 (+) 23.69

CIL/NEC (+) 8599.95 (+) 4723.37

Sub-Total (+) 28558.20 (+) 20648.30

Less dividend from Subsidiaries (-) 7307.20 (-) 4237.42

Total (+) 21251.00 (+) 16410.88

Adjustment for deferred revenue income (+) 21.59 (+) 52.36

Adjustment for exchange rate variation on Current

Account overseas subsidiaries (+) 0.07 -

Overall Profit as per Consolidation of Accounts (+) 21272.66 (+) 16463.24

CIL has achieved post tax profit of Rs 14,788.20 crores in 2011-12 compared to Rs 10,867.35 crores in 2010-11 showing a growth of 36.080/c over last year.

The pre-tax profit of CIL and its subsidiary companies during the year 2011-12 is Rs 21,272.66 crores after taking into account the impact of pay revision for workmen w.e.f. 01.07.2011. Financial impact of revision of wages of Wage Board employees are Rs 5,020.01 crores. The liability has been provided in the Accounts of 2011 -12. Out of the aforementioned financial impact of Rs 5,020.01 crores-Rs2,687.41 crores relates to increased employee benefit expenses for nine months and Rs 2,332.60 crores relates to increase in actuarial liability for increased employee benefits.

Highlights of performance

The highlights of performance of Coal India Limited including its Subsidiaries for the year 2011-12 compared to previous year are shown in the table below: 2011-12 2010-11

Production (in million tonnes 435.84 431.32

Off-take of Coal (in million tonnes) 433.08 424.50

Sales (Gross) (Rs Crores) 78410.38 60240.90

Gross Profits Crores) 21326.64 16536.94

Capital Employed (Rs Crores) 66627.24 54495.72

Net Worthy Crores) 40453.02 33314.20

Profit before Tax (Rs Crores) 21272.66 16463.24

Profit after Tax (Rs Crores) 14788.20 10867.35

Gross Profit / Capital Employed (in %) 32.01 30.35

Profit before Tax /Net Worth (in %) 52.59 49.42

Profit after Tax / Net Worth (in %) 36.56 32.62

Earning Per Share (Considering FaceValue of Rs 10 per share) 23.47 17.19

Dividend per Share (Considering Face Value of Rs 10 per share) 10.00 3.90

Coal Stock (Net) (in terms of No. of months Net Sales) 0.92 1.06

Sundry Debtors (Net) (in terms of No of Months Gross Sales) 0.86 0.67

Note : The non-recognition of interest etc. in Holding Companys Accounts, from one of its subsidiaries (as per Accounting Standard -9) has been ignored in the consolidation, the profit shown in Consolidated Accounts may be read with such deviations.

2.2 Dividend Income and Pay Outs

Dividend income of CIL accounted for during the year under review, based on the recommendations from five profit making subsidiaries namely, CCL, NCL, WCL, SECL and MCL was Rs 7,307.20 crores as against dividend of Rs 4,237.42 crores in previous year, the subsidiary- wise break-up of which areas under :-

(Rs in crores)

Name of the Subsidiary Dividend Income of CIL

CCL 748.10

(386.32)

NCL 2067.27

(1295.06)

WCL 323.25 (387.42)

SECL 1992.02

(1099.60)

MCL 2176.56

(1069.02)

Total 7307.20

(4237.42)

Figures in brackets are for previous year.

Your Directors recommended dividend payment of Rs 6,316.36 crores @ Rs 10/- per share on 6316364400 Equity Shares of Rs 10/- each fully paid value at Rs 6,316.36 crores. Out of total dividend, Govt of India gets Rs 5,684.72 crores and other shareholders get Rs 631.64 crores. (Earlier year - Govt of India received Rs 2,217.04 crores and other shareholders received Rs 246.34 crores).

3. COAL MARKETING

3.1 (a) Off-take of Raw Coal

Offtake of raw coal continued to maintain its upward trend and reached 433.08 million tonnes, surpassing previous highest figure of 424.50 million tonnes achieved during the last year, i.e., an increase of 2 % over last year. The Off-take achieved was 95.8o/0 of the Annual Action Plan Target. Off-take suffered heavily in most of the coal fields, due to excessive rainfall in August-September2011. Though there was an improvement from the month of November, inadequate wagon availability till December11 had an adverse effect on the projected growth in off-take. Desired level of off-take was also affected due to less transportation to sidings arising out of law & order problem in CCL and MCL fields. However, CIL has registered excellent performance during the last quarter, which helped the company achieve the overall satisfactory performance.

Company-wise coal off-take:

Company-wise target vis-a-vis actual off-take for 2011-12 and 2010-11 are shown below: -

(Figs, in million tonnes)

2011-12 2010-11 Growth over last year

Company Target Achieved % Achieved Achieved Abs. %

ECL 34.00 30.83 90.7 29.74 1.09 3.7

BCCL 30.00 30.16 100.5 29.39 0.77 2.6

CCL 52.00 48.04 92.4 46.38 1.66 3.6

NCL 68.50 63.61 92.9 64.21 -0.60 -0.9

WCL 45.50 41.97 92.2 42.56 -0.59 -1.4

SECL 112.00 115.15 102.8 109.02 6.13 5.6

MCL 109.00 102.53 94.1 102.10 0.43 0.4

NEC 1.00 0.80 80.0 1.10 -0.30 -27.3

CIL 452.00 433.08 95.8 424.50 8.58 2.0

From above it may be seen that BCCL & SECL had not only outperformed their respective targets but also exceeded last years level. Barring NCL, WCL and NEC all other coal companies registered a positive growth in off-take. Off-take from ECL & NCL was affected mainly due to less dispatch through MGR. Less transportation due to Law & order problem affected dispatch from CCL. Off-take from WCL received a serious set-back due to MAHAJENCOs decision of non-lifting of coal through road-cum-rail mode by their Washery Operator. Less transportation due to law & order problem coupled with fewer placements of MGR rakes byTalcher STPS as well as less availability of railway wagons affected the overall off-take of MCL.

(b) Sector-wise despatch of coal & coal products:

Sector-wise break-up of despatch of coal & coal products for 2011-12 against target and last years actual is given below:

(Figs, in million tonnes)

Year 2011-12 2010-11 Growth over last year

Sector Target Despatch % Satn. Actual Abs. %

Power (Util) 327.54 312.07 95.3 304.15 7.92 2.6

Steel* 4.11 4.12 100.2 4.21 -0.09 -2.1

Cement** 7.46 6.69 89.7 6.79 -0.10 -1.5

Fertilizer 2.87 2.79 97.2 2.78 0.01 0.4

Export 0.02 0.00 0.0 0.00 0.00 0.0

Others 106.26 107.28 101.0 105.51 1.77 1.7

Despatch 448.26 432.95 96.6 423.44 9.51 2.2

* despatch of washed coal, direct feed & blendable coal to steel plants.

** despatch to cement plants excluding cement cpp.

3.2 Despatches of coal and coal products by various modes:

Despatches of coal and coal products during 2011 -12 went up to 432.95 million tonnes from 423.44 million tonnes registering a growth of 2.2 %. Overall dispatch by Road and Rope/Belt (other modes) had been more than target though road dispatch at WCL suffered a serious set-back due to MAHAJENCOs decision of non-lifting of coal through road-cum-rail mode by their Washery Operator. MGR despatch was affected due to less placement of MGR rakes by Talcher STPS, CHP problem and unloading problem at NTPC- Kahalgaon TPS. MGR off-take of NCL could not materialize to its fullest potential due to mutual arrangement between Railways and NTPC for operating BOBR rakes on NTPC rail track thus reducing the availability of MGR track for movement of MGR rakes and also due to inadequate availability of locomotives for hauling MGR rakes. This apart, MGR despatch was also affected due to preference given by NTPC for unloading of imported coal rakes, frequent derailment of MGR rakes and poor performance of MGR system at AnparaTPS.

Despatch of coal and coal products by various modes for the years 2011-12 and 2010-1 list given below:

(Figs, in million tonnes)

Year 2011-12 2010-11 Growth over last year

Mode Target Despatch % Satn. Actual Abs. %

Rail 241.44 229.07 94.9 215.81 13.26 6.1

Road 102.00 113.39 111.2 112.35 1.04 0.9

MGR 94.47 79.32 84.0 83.62 -4.30 -5.1

Other Modes 10.35 11.17 107.9 11.66 -0.49 -4.2

Overall 448.26 432.95 96.6 423.44 9.51 2.2

3.3 Wagon Loading

Sustained efforts and regular coordination with railways at different levels saw wagon loading increase by another 345 boxes per day over last year .Overall materialization was 96.1% of the target. Company wise performance shows that ECL, BCCL & NCL not only exceeded last years level of loading but also surpassed their target. Wagon loading at NEC was also more than the target. Major deviation from AAP target has taken place in Karanpura Field of CCL, Korba Field of SECL and both lb and Talcher fields of MCL The loading potentials of CCL, MCL & SECL-Korba could not be utilized due to inadequate supply of empty wagons. In some of the coalfields like CCL-Karanpura and MCL-Talcher, desired level of rail despatch could not be achieved due to less transportation of coal to sidings arising out of law & order problem and obstruction/agitation by local people on various demands. Rail despatch at NCL could have been even better but for supply of BOBR rakes moving in close circuit within Singrauli region and non-availability of Box-N rakes.

(Figs, in box/day)

Company 2011-12 2010-11 Growth of last year

Target Achieved % Achieved Achieved Abs. %

ECL 781 874 112.0 802 72.4 9.0

BCCL 1113 1167 104.9 1107 60.0 5.4

CCL 1807 1498 82.9 1423 75.4 5.3

NCL 1000 1045 104.5 1013 31.5 3.1

WCL 876 824 94.1 820 4.4 0.5

SECL 1926 1877 97.5 1796 81.3 4.5

MCL 2770 2568 92.7 2540 28.4 1.1

NEC 30 42 141.2 50 -7.6 -15.3

CIL 10303 9897 96.1 9552 344.7 3.6

3.4 Consumer Satisfaction:

i) In order to ensure enhanced customer satisfaction, special emphasis has been given to quality management. Steps were taken to monitor quality right at the coalface apart from bringing further improvements in crushing, handling, loading and transport system.

ii) CIL has built up coal handling plants with capacity of about 296 MT per annum so as to maximize dispatches of crushed / sized coal to the consumers. In addition, the washeries at BCCL, CCL, WCL and NCL have adequate crushing /sizing facilities to the tune of about 39.4 million tones.

iii) Measures like picking of shale / stone, selective mining by conventional mode as well as by surface miners, adopting proper blasting procedure / technique for reducing the possibility of admixture of coal with over- burden materials, improved fragmentation of coal etc. are being taken for improving coal quality.

iv) Surface Miners have been deployed by CIL for selective mining at some of the mines to improve the quality of coal. Action is being taken for deployment of more surface miners in other mines where geo-mining condition permits. Already 31 Surface Miners have been deployed in MCL, CCL, ECL and SECL at opencast mines and are working satisfactorily.

v) Joint sampling system is in vogue for major consuming sectors e.g. power (utilities as well as captive), steel, cement, sponge iron covering more than 95<>/o of total production of CIL. On overall basis, large consumers having annual quantity of 0.4 million tonne or more and having FSA have been covered for sampling. The achievement of grade conformity in respect of sampling and analysis has been to the tune of 94.3o/0 up to Dec11 in respect of supplies to power sector during 2011 -12. Consumers, covered under the agreed sampling arrangement are required to pay as per the analysed grade of coal. This system is working satisfactorily.

vi) Electronic Weighbridges with the facility of electronic printout have been installed at rail loading points to ensure that coal despatches are made only after proper weighment. For this purpose, coal companies have installed 168 weighbridges in the Railway sidings and 478 weighbridges for weighment of trucks. Coal companies have also taken actions for installation of standby weighbridges to ensure lOQo/o weighment.

During 2011-12, about 99% of coal despatches to power houses have been weighed as compared to about 98.30/c during the year 2010-11. Sized coal despatches to power houses during 2011 -12 had been 98.640/c compared to about 98.6o/0 during the year 2010-11.

3.5 Steps Taken Towards Liberal Marketing of Coal:

Status of implementation of different provisions under NCDP is as under:

i) At the end of Mar 12, against the quantity allocated by CEA of 306 million tonnes for power stations, drawing coal on 31.3.09, total quantity covered under FSA had been 301.45 million tonnes showing materialization of almost 98.5o/0. Regular follow up was made with concerned power utilities to ensure that entire quantity gets covered under FSA. Apart from the above, new power stations (post NCDP) who are to draw coal through LOA route followed by FSA/ MOU, quantity covered in such cases came to 22.64 million tonnes per annum. Further power stations having pre NCDP linkage is also drawing coal under MOU for a quantity of 21.06 million tonnes.

ii) Out of 1206 valid linked units other than power and steel plants with eligible FSA quantity of 64.77 million tonnes, 1188 units have executed FSAs for 64.14 million tonnes.

iii) For supply of coal to SME sector, 8 million tonnes was earmarked by CIL for allocation to agencies nominated by the State Govts/ UTs. During the current fiscal, 18 states / UTs sent their nomination of 27 state agencies for the year 2011 -12 of which 22 state agencies have signed FSA for 3.95 million tonnes and drawing coal accordingly.

iv) After implementation of NCDP, 654 new consumers in power, sponge iron, Captive power and cement sector were served notices with a request to deposit commitment guarantee(CG), of which 551 units submitted CG. 551 units were issued LOA for completion of necessary milestones. 300 units completed milestones and executed FSA.

v) Under Forward e-auction scheme during the year ended Marl 2, quantity allocated was 7.55 million tonnes as against 5.61 million tonnes allocated in last year. Number of bidders participated also went up to 464 from 264 in the last year. Quantity allocated under spot e-auction also maintained its rising trend. During the period under review, 49.72 million tonnes of coal was allocated under spot e-auction to the successful bidders as against 46.56 million tonnes of coal allocated last year .Premium earned through e-auction over notified price was 66.6%(5526.88 Cr.) as against 80.7o/o(4072.06 Cr.) of last year.

vi) Coal India Ltd. has converted to GCV(Gross Calorific Value) based system of coal grading & pricing for non- coking coal as per Government notification with effect from 01.01.2012 from earlier UHV system, which is an internationally accepted norm for grading of coal.

3.6 Coal Beneficiation

In order to supply improved quality and sized coal, CIL operates 17 coal washeries with a total capacity of 39.4 Mty. Out of these, 12 are coking coal washeries with a total capacity of 22.18 Mty and 5 are non coking coal washeries with a total capacity of 17.22 Mty. Considering the increasing demand for washed coal and drive for a cleaner environment, CIL has initiated action to establish 20 coal washeries with a total capacity of 111.1 Mty, out of which 6 are coking coal washeries with a total capacity of 19.1 Mty and 14 are non coking coal washeries with a total capacity of 92.00 Mty in 1st phase. These washeries are scheduled to be commissioned during XII Plan period . Further, CIL is also formulating plan to set up more coking and non coking coal washeries in the 2nd phase for supply of washed coal to various consumers.

3.7 Stock of Coal, Coke etc.

Net adjusted value of the pithead stock of coal and other products at the close of the year 2011-12 after provision for stock deterioration etc. was Rs 4,801.14 crores, which was equivalent to 0.92 month value of net sales. The company-wise position of stocks held on 31.03.2012 and on 31.03.2011 are given below :

(Figures in Rs crores)

Net Value of Net Value of Stock in terms of no. of months Company stock as on stock as on Net Sales 31.03.2012 31.03.2011 As on 31.03.12 As on 31.03.11

ECL 476.65 430.58 0.69 0.88

BCCL 946.79 1025.94 1.56 2.00

CCL 1379.68 1292.31 2.26 2.57

NCL 391.10 199.81 0.59 0.31

WCL 488.14 360.37 0.87 0.72

SECL 572.54 624.63 0.46 0.70

MCL 530.59 473.47 0.67 0.76

NEC/CIL 15.65 32.71 0.45 0.96

Total 4801.14 4439.82 0.92 1.06

3.8 Coal Sales Dues

Net Coal Sales dues outstanding as on 31.03.2012 after providing of Rs 1,771.14 crores (previous year Rs 1,484.52 crores) for bad and doubtful debts, was Rs 5,616.30 crores (previous year Rs 3,373.01 crores) which is equivalent to 0.86 months combined gross sales of CIL as a whole (previous year 0.67 months). Subsidiary-wise break-up of coal sale dues outstanding as on 31.03.2012 as against 31.03.2011 are shown below :-

(Figures in Rs crores)

Coal Sales dues Coal Sales dues Company As on 31.03.2012 As on 31.03.2011

Gross Net Gross Net

ECL 2665.04 2459.37 1044.61 959.20

BCCL 1619.40 951.72 1131.47 618.14

CCL 1471.75 1078.66 1461.94 941.64

NCL 526.14 425.70 497.84 492.58

WCL 133.05 13.97 147.37 25.20

SECL 710.09 464.28 461.23 255.33

MCL 251.19 222.59 102.30 80.92

NEC/CIL 10.78 0.01 10.77 -

Total 7387.44 5616.30 4857.53 3373.01

3.9 Payment of Royalty, Cess and Sales Tax, Stowing Excise Duty & Entry Tax

During the year 2011 -12, CIL and its Subsidiaries paid/adjusted Rs 16,245.61 crores (previous year Rs 9,923.27 crores) towards Royalty, Cess, Sales Tax and other levies as detailed below :-

(Figures in Rs crores)

2011-12 2010-11

Royalty 5315.14 4799.52

Cess & Others 2745.85 1339.07

Sales Tax/ VAT 2537.05 1757.81

Stowing Excise Duty 421.75 424.36

Central Excise Duty 3040.27 233.49

Clean Energy Cess 2082.40 1286.61

Entry Tax 103.15 82.41

Total 16245.61 9923.27

State-wise & Company-wise break-up of payment of Royalty, Sales Tax, SED, Cesses and other Levies during 2011 -12 are given below:-

Company Particulars MP Chattisgarh WB Jharkhand Maharashtra

ECL Royalty 9.44 180.00

Cess & Others 1342.51

Sales Tax/VAT 268.54 52.52

Stowing Excise Duty

Central Excise Duty 319.21 94.19

Clean Energy Cess 79.89 87.05

Entry tax

Total 2019.59 413.76

BCCL Royalty 0.04 567.88

Cess & Others 4.11

Sales Tax/VAT 8.90 224.84

Stowing Excise Duty

Central Excise Duty 348.98

Clean Energy Cess 147.10

Entry tax

Total 13.05 1288.80

CCL Royalty 682.66

Cess & Others

Sales Tax/VAT 255.10

Stowing Excise Duty

Central Excise Duty 398.12

Clean Energy Cess 189.10

Entry tax

Total 1524.98

NCL Royalty 609.99

Cess & Others 1171.80

Sales Tax/VAT 164.38

Stowing Excise Duty

Central Excise Duty 176.97

Clean Energy Cess 181.16

Entry tax 5.24

Total 2309.54

WCL Royalty 99.07 526.30

Cess & Others

Sales Tax/VAT 59.23 257.00

Stowing Excise Duty

Central Excise Duty 53.87 288.23

Clean Energy Cess 29.63 163.95

Entry tax 10.23

Total 252.03 1235.48

Company Particular UP Odisha Assam CCO/GOI 2011-12

ELC Royalty 189.44

Cess & Others 1342.51

Sales Tax/Vat 321.06

Stowing Excise 29.03 29.03 Duty

Central Excise Duty 413.40

Clean Energy 166.94

Entry Task -

Total 29.03 2462.38

BCCL Royalty 567.92

Cess & Others 4.11

Sales Tax/VAT 233.74

Stowing Excise Duty 29.60 29.60

Central Excise Duty 348.98

Clean Energy Cess 147.10

Entry Task -

Total 29.60 1331.45

CCL Royalty 682.66

Cess & Others - Sales Tax/VAT 255.10

Stowing Excise Duty 47.70 47.70

Central Excise Duty 398.12

Clean Energy Cess 189.10

Entry Task -

Total 47.70 1572.68

NCL Royalty 181.94 791.93

Cess & Others 16.75 1188.55

Sales Tax/VAT 155.88 320.26

Stowing Excise Duty 62.62 62.62

Central Excise Duty 149.40 326.37

Clean Energy Cess 132.95 314.11

Entry Tax 19.81 25.05

Total 656.73 62.62 3028.89

WCL Royalty 625.37

Cess & Others -

Sales Tax/VAT 316.23

Stowing Excise Duty 42.18 42.18 Central Excise Duty 342.10

Clean Energy 193.58 Duty

Entry tax 10.23

Total 42.18 1529.69



Company Particulars MP Chattisgarh WB Jharkhand Maharashtra



SECL Royalty 303.73 1100.80

Cess & Others 103.23 104.50

Sales Tax/VAT 162.32 507.47 6.51

Stowing Excise Duty

Central Excise Duty 166.13 542.35 1.33

Clean Energy Cess 69.81 503.26

Entry tax

Total 805.22 2758.38 7.84

MCL Royalty

Cess & Others

Sales Tax/VAT

Stowing Excise Duty

Central Excise Duty

Clean Energy Cess

Entry tax

Total

CIL/ Royalty

NEC/ Cess & Others

Others Sales Tax/VAT

Stowing Excise Duty

Central Excise Duty

Clean Energy Cess

Entry Tax

Total

Overall Royalty 1012.79 1100.80 9.48 1430.54 526.30

Cess & Others 1275.03 104.50 1346.62

Sales Tax/VAT 385.93 507.47 283.95 532.46 257.00

Stowing Excise Duty - - - - -

Central Excise Duty 396.97 542.35 320.54 841.29 288.23

Clean Energy Cess 280.60 503.26 79.89 423.25 163.95

Entry tax 15.47 - - - - Total 3366.79 2758.38 2040.48 3227.54 1235.48



Company Particular UP Odisha Assam CCO/GOI 2011-12

SECL Royalty 1404.53

Cess & Others 207.73

Sales Tax/VAT 676.30

Stowing Excise Duty 110.80 110.80

Central Excise Duty 709.81

Clean Energy Cess 573.07

Entry Tax -

Total 110.80 3682.24

MCL Royalty 1027.77 1027.77

Cess & Others -

Sales Tax/VAT 402.84 402.84

Stowing Excise Duty 99.06 99.06

Central Excise Duty 481.68 481.68

Clean Energy Cess 494.53 494.53

Entry Tax 67.87 67.87

Total 2474.69 99.06 2573.75

CIL/ Royalty 25.52 25.52

NEC/ Cess & Others 2.95 2.95

Others Sales Tax/VAT 11.52 11.52

Stowing Excise Duty 0.76 0.76

Central Excise Duty 19.81 19.81

Clean Energy Cess 3.97 3.97

Entry Tax -

Total 63.77 0.76 64.53

Overall Royalty 181.94 1027.77 25.52 - 5315.14

Cess & Others 16.75 - 2.95 - 2745.85

Sales Tax/VAT 155.88 402.84 11.52 - 2537.05

Stowing Excise Duty - - - 421.75 421.75

Central Excise 149.40 481.68 19.81 - 3040.27 Duty

Clean Entry 132.95 494.53 3.97 - 2082.40 Cess

Entry tax 19.81 67.87 - - 103.15

Total 656.73 2474.69 63.77 421.75 16245.61

4. COAL PRODUCTION

4.1 Raw coal production

Production of raw coal during 2011 -12 was 435.84 Million Tonnes as against 431.32 Million Tonnes produced in 2010-11 .The company- wise production is given below:

(Figure in all Million Tonnes)

Coking Non-Cocking Total

Company 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11

ECL 0.05 0.05 30.51 30.75 30.56 30.80

BCCL 27.25 25.29 2.96 3.72 30.21 29.01

CCL 15.55 15.45 32.45 32.07 48.00 47.52

NCL 0.00 0.00 66.40 66.25 66.40 66.25

WCL 0.32 0.40 42.79 43.25 43.11 43.65

SECL 0.19 0.16 113.65 112.55 113.84 112.71 MCL 0.00 0.00 103.12 100.28 103.12 100.28

NEC 0.00 0.00 0.60 1.10 0.60 1.10

CIL 43.36 41.35 392.48 389.97 435.84 431.32

4.2 Production from underground and opencast mines.

Coal production from underground mines in 2011-12 was 38.39 Million Tonnes compared to 40.02 Million Tonnes produced in 2010- 11. Production from Open cast mines during 2011 -12 was 91.2 % of total raw coal production. Company-wise production is as under:

(Figure in Million Tonnes)

Underground Production Opencast Production

Company 2011-12 2010-11 2011-12 2010-11

ECL 6.83 7.37 23.73 23.43

BCCL 3.48 3.70 26.73 25.31

CCL 1.09 1.27 46.91 46.25

NCL 0.00 0.00 66.40 66.25

WCL 8.39 8.71 34.72 34.94

SECL 16.41 16.80 97.43 95.91

MCL 2.19 2.17 100.93 98.11

NEC 0.004 0.002 0.60 1.10

CIL 38.39 40.02 397.45 391.30

Company Total Production

2011-12 2010-11

ECL 30.56 30.80

BCCL 30.21 29.01

CCL 48.00 47.52

NCL 66.40 66.25

WCL 43.11 43.65

SECL 113.84 112.71

MCL 103.12 100.28

NEC 0.60 1.10

CIL 435.84 431.32

4.3 Hard Coke and Washed Coal (Coking) Production

Subsidiary-wise production of Hard coke and Washed coal (coking) is given below:

(Figure in Lakh Tonnes)

Hard Coke Washed Coal (Coking)

Company 2011-12 2010-11 2011-12 2010-11

ECL - - - -

BCCL 0.00 0.00 14.21 15.49

CCL - - 13.34 14.53

NCL - - - -

WCL - - 1.37 1.91

SECL - - - -

MCL - - - -

NEC - - - -

CIL 0.00 0.00 28.92 31.93

4.4 Overburden Removal

Overburden Removal during 2011-12 was 735.14 Million Cubic Meter as against 732.13 Million Cubic Meter achieved in 2010-11 recording a growth of 0.4%. Company-wise details of overburden removal are shown below:

(Figure in Million Cubic Meters)

Company 2011-12 2010-11

ECL 60.31 56.25

BCCL 81.36 83.23

CCL 65.68 62.52

NCL 201.66 182.22

WCL 122.49 115.83

SECL 113.49 137.57

MCL 85.67 88.70

NEC 4.48 5.81

CIL 735.14 732.13

4.5 XI Plan Performance

As per the XI Plan document All India coal demand growth, was envisaged at 9.52o/0 (i.e. 731 Mt) at the terminal year (2011 -12), against actual growth of 5.7% in X plan period. At the Mid-term Appraisal (MTA), envisaged growth was revised to 8.99o/0, i.e. 713.24 Mt. In Annual Plan 2011-12 this was further revised to 649.87 Mt. Actual consumption was 635.62 Mt (growth - 6.50/0)

Domestic coal production was envisaged at 680 Mt (growth 9.56%), CILs projection estimated at 520.50 Mt (77% share), growing at 7.6% At the MTA, this was re-assessed at 630 Mt, CILs share being 486.5 Mt (growth 6.15%). In the Annual Plan 2011-12, CILs coal production target was revised to 447 Mt due to constraints faced by coal sector. Coal production of CIL grew at 3.84% (435.84 Mt). In the first three years of the XI Plan, CILs coal production showed an increasing trend with a growth rate of over 6% which was reduced to 0.5% in the last two years on account delays in Forestry & Environmental Clearances (FC & EC), delay in land acquisition and R & R issues and coal evacuation constraints.

As per XI Plan Document, capital outlay of CIL was envisaged at Rs 17,390.00 Cr., which was revised to Rs 16,090.68 Cr. at MTA. The actual capital expenditure was Rs 13,617.56 Cr.

4.6 Future Outlook

In the terminal year (2016-17), as per XII Plan Document, All India Coal demand growth rate has been envisaged at 7.09% (980.50 Mt). Estimated Coal demand for 2012-13 is 772.84 Mt.

In the TY of XII plan (2016-17) the envisaged indigenous coal production is 795.00 Mt. Out of this, CILs projection is 615 Mt (envisaged growth rate 7.12%), 77% share of total production. Out of this 30.2% is to come from existing mines, 54.2% from projects under implementation and 15.6% from new projects to be taken up. On date 147 projects are under implementation. Further 126 new projects are identified to be taken up in XII Plan, of which 58 are spill-over projects of X & XI Plans. Coal production target of CIL in 2012-13 is 464.10 Mt (growth 6.48%).

CIL has proposed a capital outlay of Rs 25,400 Cr in XII plan plus an ad hoc provision of Rs 35,000 Cr for acquisition of assets abroad and development of the acquired coal block in Mozambique.

5. POPULATION OF EQUIPMENT

The population of major Opencast Equipment (Heavy Earth Moving Machinery) as on 1.4.2012 and on 1.4.2011 along with their performance in terms of availability & utilisation expressed as percentage of CMPDIL norm is tabulated below :

No. of Equipment

As on 1.4.2012 As on 1.4.2011

Dragline 40 40

Shovel 727 754

Dumper 3280 3217

Dozer 987 981

Drill 664 709

Indicated as % of CMPDIL Norm

Availability Utilisation

Company 2011-12 2010-11 2011-12 2010-11

Dragline 93 92 83 91

Shovel 89 90 75 78

Dumper 100 99 69 70

Dozer 93 93 58 59

Drill 99 98 71 74

6. CAPACITY UTILISATION

System Capacity Utilisation

The overall system capacity utilisation of CIL as a whole for the year 2011-12 has worked out to be 86.12%. It was 89.31% during 2010-11. Subsidiary-wise details in term of percentage vis-a-vis preceding year is as under:

(in %)

Company 2011-12 2010-11

ECL 129.90 94.88

BCCL 97.77 115.78

CCL 93.81 94.88

NCL 79.87 71.68

WCL 102.49 92.94

SECL 79.87 105.39

MCL 69.90 83.20

NEC 56.29 66.66

Total CIL 86.12 89.31

7. PRODUCTIVITY: OUTPUT PER MANSHIFT (OMS)

Output per manshift (OMS) during 2011 -12 improved to 4.89 Tonnes per manshift from 4.73 Tonnes per manshift of previous year. Company-wise position is given in the following table:

(Figure in Tonnes)

Underground OMS Opencast OMS

2011-12 2010-11 2011-12 2010-11

ECL 0.44 0.45 8.64 8.14

BCCL 0.36 0.39 6.57 5.64

CCL 0.32 0.34 5.79 5.45

NCL 0.00 0.00 13.55 13.52

WCL 1.08 1.09 4.22 4.13

SECL 1.30 1.32 19.32 20.22

MCL 1.24 1.25 20.38 20.50

NEC 0.01 0.00 43.79 7.10

CIL 0.75 0.77 10.40 10.06

Overall OMS

Company 2011-12 2010-11

ECL 1.68 1.60

BCCL 2.20 2.09 CCL 4.19 3.88

NCL 13.55 13.52

WCL 2.70 2.65

SECL 6.44 6.47

MCL 15.36 15.37

NEC 1.23 2.16

CIL 4.89 4.73

8. PROJECT FORMULATION:

8.1 Preparation of Reports (PR): As prioritized by subsidiary companies of Coal India Limited, preparation of Project Reports (PR) for new/expansion/re-organization mines was carried out during the year 2011 -2012 for building additional coal production capacity. Revision of Project Reports/Cost Estimates for projects was also taken up along with new PRs. Thrust was given for preparation of reports of identified projects of XI Plan and Mine Closure Plans of OC and UG mines.

Other important jobs undertaken during the year:

1. Preparation & evaluation of RFQ (Request for Qualification) and RFP (Request for Proposal) documents and customization of bid document for coal washeries.

2. Operational plans for large OC mines.

3. Environment Management Plan (EMP).

4. Mining Plansof OCand UG mines.

5. Mine capacity assessment of underground & opencast mines of CIL

6. Various technical studies relating to operation of opencast & underground mines.

7. Performance analysis of HEMM operating in OC mines of CIL.

8. Preparation of Global Bids for deployment of Continuous Miner in underground mine of CIL.

9. Preparation of Model Bid Document & Conceptual Report for setting up of FBC based thermal power plants using washery rejects.

10. Detailed design and drawings, NIT, tender scrutiny, etc.

Expert Consultancy Services: During the year 2011 -2012, expert consultancy services were also provided to subsidiary companies of Coal India Limited in the field of Environmental Management and Monitoring, Remote Sensing, Energy Audit (Diesel & Electrical), Benchmarking of Diesel & Electrical Consumption and Fixation of Diesel & Electrical Consumption Norms of Opencast and Underground mines, Physico-mechanical tests on Rock and Coal Samples, Subsidence Studies, Strata Control, Non-Destructive Testing (NDT), Controlled Blasting &Vibration Studies and Explosive Utilization, Ventilation/Gas Survey of UG mines, Mining Electronics, Petrography and Cleat Study on coal samples, Coal Core Processing & Analysis, Washability tests, OBR Survey, Man Riding System, Soil Erosion Study, Slope Stability Study, Effluent/Sewerage Treatment Plants, Assessment of Normative Cost of sand stowing for stowing mines, etc.

In all, during the year under review, CMPDI had prepared 275 reports which include 19 Geological Reports, 28 Project Reports, 14 Operation Plans, 150 Other Reports (includes Master Plan for North Eastern Coalfields) and 64 Draft Environment Management Plans (including 31 applications as per Form-I for EMP clearance).

8.2 Project Implementation:

(a) The following 4 coal projects, each costing Rs 20 crores & above, with an ultimate capacity of 2.0275 Mty and sanctioned capital of Rs 277.35 Crs. have been completed during the year 2011-12 :

SL. Cos Name of the Projects Type Sanctioned Capacity Sanctioned Capacity (MTY) (Rs Crs.)

1 ECL JHANJRA 1ST SET CM UG 0.4375 93.60

2 ECL J K NAGAR (Foreclosure) UG 0.29 54.06

3 SECL NCPH SEAM V R-6 UG 0.42 30.71

4 SECL SHEETALDHARA & KURJA UG 0.88 98.98

TOTAL 2.0275 277.35

(b) 6 coal projects, each costing Rs 20 crores & above, with an ultimate capacity of 19.085 Mty and sanctioned capital of Rs 1,607.79 Crs. have started contributing production during the year 2011-12 :

SL. Cos Name of the Projects Type Sanctioned Capacity Sanctioned Capacity (MTY) (Rs Crs.)

1 NCL KHADIA EXP (6.00 MTY INCR.) OC 6.00 1131.26

2 MCL ANANTA EXPN PH-III OC 3.00 207.28

3 MCL LINGARAJ OC EXPNPH-III OC 3.00 52.25

4 MCL SAMLESHWARI EXPN PH-IV OC 5.00 27.82

5 SECL KHAIRAHA UG 0.585 88.33

6 SECL AMLAI OC EXPNSE C-B OC 1.50 100.85

TOTAL 19.085 1607.79

Status of Ongoing Projects:

Presently, there are 117 mining (excluding 12 projects of WCL approved subject to finalization of Coal Supply Agreement on cost plus basis.) and 13 non-mining projects, costing Rs 20 Crores and above, under implementation.

Out of 117 mining projects, 61 projects are running on schedule & 56 are delayed. Out of 13 non-mining projects, 10 are on schedule and 3 are delayed.

Projects Total Projects Projects on schedule Projects delayed

Mining 117 61 56

Non Mining 13 10 3

Total 130 71 59

Reasons for delay:

Mining Projects:

SL. Reasons for Delay No. of Projects

1. ADVERSE GEOMINING CONDITION 2

2 DELAY IN LAND ACQUISITION+R&R 37

3 MISCELLANEOUS 17

Total 56

Non-mining Projects:

Out of 3 delayed projects, all 3 are due to land and rehabilitation problems.

8.3 Projects Sanctioned (Costing Rs 20 Crores & Above):

(a) No Advance Action proposal has been sanctioned during 2011-12.

(b) CIL Board has sanctioned 5 mining projects during 2011-12.

SL. Cos Name of the Projects Type Sanctioned Capacity Sanctioned Capacity

(MTY) (RsCrs.)

1 ECL KOTTADIH CONTINUOUS MINER UG 0.60 127.17

2 BCCL KAPURIA UG 2.00 988.35

3 BCCL MOONIDIH XV SEAM UG 1.50 1230.27

4 CCL AMRAPALI OCP OC 12.00 858.11

5 NCL KHADIAEXP(INCR.6.00 MTY) OC 6.00 1131.26

(c) No Non-mining project has been approved by CIL Board during the year 2011-12.

(d) The Subsidiary Company Boards have not sanctioned any new/expansion mining projects under their delegated powers during the year 2011-12.

(e) The Subsidiary Company Boards sanctioned following 2 Non-Mining Projects under their delegated powers during the year 2011-12:

SL. Cos Name of the Projects Type Sanctioned Capacity (Rs Crs.)

1 MCL Construction of 4-lane 41.5 Km long road in Talcher Coal field NON-MINING 251.35

2 MCL Construction of 4 lane dedicated coal corridor from Bankibahal NON-MINING 385.00 Colliery to Bhedabhal (on SH-10) in the district of Sundargarh

8.4 Revised Project Report / Revised Cost Estimates:

(a) 3 RPR / RCEs were sanctioned by CIL during 2011 -12.

SL. Cos Name of the Projects Type Sanctioned Capacity Sanctioned Capacity

(MTY) (Rs Crs.)

1 ECL JHANJRA 2ND CM(RCE) UG 0.51 147.25

2 NCL BLOCK-B(RPR) OC 3.50 535.10

3 NCL KRISHANSHILA(RPR) OC 4.00 741.62

(b) Subsidiary Company Boards sanctioned 2 RPR / RCEs during 2011-12:

SL. Cos Name of the Projects Type Sanctioned Capacity Sanctioned Capacity (MTY) (Rs Crs.)

1 MCL HBIAUG(RPR) UG 0.95 105.84

2 SECL JAMPALIOC(RCE) OC 2.00 142.58

9. CAPITAL EXPENDITURE

Overall Capital Expenditure during 2011 -12 was Rs 3,727.17 crores as against Rs 2,539.72 crores in previous year, subsidiary-wise details of which are given below :-

(Figures in Rs crores)

2011-12 2010-11

Company (BE) Actual (BE) Actual

ECL 400.00 332.96 400.00 184.93

BCCL 400.00 410.72 350.00 320.94

CCL 350.00 320.99 350.00 200.76

NCL 800.00 702.11 800.00 310.53

WCL 350.00 275.72 350.00 239.74

SECL 600.00 937.65 600.00 581.87

MCL 700.00 497.95 650.00 608.10

CMPDIL 30.00 16.30 15.00 10.74

NEC/CIL/Others 590.00 232.77 285.00 82.11

Total 4220.00 3727.17 3800.00 2539.72

Capital Expenditure incurred during 2011 -12 is about 88.32% of BE. (66.83% in 2010-11).

10. CAPITAL STRUCTURE

The authorized share capital of the company as on 31.03.2012 was Rs 8,904.18 crores, distributed between Equity and Non-cumulative redeemable preference shares as under:

(i) 800,00,00,000 Equity Shares of Rs 10/-each Rs 8,000.00 crores

(Previous Year 800,00,00,000 Equity Shares of Rs 10/- each)

(ii) 90,41,800 Non-cumulative 10% Redeemable Rs 904.18 crores

Preference Shares of Rs 1000/-each (Previous Year 90,41,800 Non-cumulative 10%

Redeemable Preference Shares of Rs 1000/- each) Rs 8,904.18 crores

The paid-up equity capital as on 31.03.2012 was Rs 6,316.36 crores, which includes Rs 256.93 crores worth of Equity Shares issued in favour of the Government of India (Gol) towards value of land acquired.

Total investment by the Government of India in CIL and its subsidiaries are as follows: -

(Figures in Rs crores)

As on 31.03.2012 As on 31.03.2011

Investment by Gol 5684.72 5684.72

Other Investors 631.64 631.64

Total 6316.36 6316.36

11. BORROWINGS

Aggregate borrowings of CIL has increased to Rs 1,527.38 Cr. in 2011-12 from Rs1,520.97 Cr. in 2010-11, as detailed below:

(Figures in Rs crores)

Particulars 2011-12 2010-11

Foreign Loans including deferred credits

IBRD/JBIC 1362.72 1370.43

EDC Canada 155.63 141.56

Liebherr France SA., France 9.03 8.98

Total 1527.38 1520.97

Increase in outstanding is mainly because of increase in exchange rate even after repayment of principal and reduction in equivalent foreign currency of outstanding loan over previous year. The debt servicing has been duly met.

12. INTERNATIONAL CO-OPERATION

Coal India is looking for foreign collaboration with a view to :-

- Bring in proven technologies and advanced management skills for running UG and OC mines and coal preparation.

- Exploration and exploitation of Coal Bed Methane, Coal Mine Methane, Abandoned Mine Methane.

- Locating overseas countries interested in Joint Venture in the field of coal mining with special thrust on coal mining under built up areas.

- Exploring financial assistance for import of equipment and other investment needs of the coal industry in India.

Keeping the above objectives in view, discussions are being held from time to time with countries like United Kingdom, Russia, Germany, United States, Canada, France, Poland, Belarus, South Africa, Mozambique, China, Japan, Australia etc. to identify the areas of mutual cooperation for India in general and Coal India Ltd. in particular.

The important areas identified include modern technologies for mass production in both UG and OC mining, dealing with fire and subsidence, mine safety, coal preparation, extraction of Coal Bed Methane, Coal Gasification, application of Geographical Information System, Satellite Surveillance, environmental control, overseas ventures in coal mining. Besides above, emphasis is being given to transfer of modern technologies and training.

While CIL would endeavour to acquire suitable technology through international bidding on risk/gain sharing basis, bilateral cooperati


Mar 31, 2011

The Members,

On behalf of the Board of Directors, I have great pleasure in presenting to you, the Thirty-seventh Annual Report of Coal India Limited (CIL) and Audited Accounts for the year ended 31 st March, 2011 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 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 383347 (as on 31st March, 2011). CIL operates through 81 mining areas spread over 8 provincial states of India. CIL has 471 mines of which 273 are underground, 163 opencast and 35 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 26 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 India's major consumers are Power and Steel sectors. Others include Cement, Fertiliser, Brick Kilns and a host of other industries.

During the year the company continued to have eight fully owned

Indian subsidiary companies viz.:

Eastern Coalfields Limited (ECL),

Bharat Coking Coal Limited (BCCL),

Central Coalfields Limited (CCL),

Western Coalfields Limited (WCL),

South Eastern Coalfields Limited (SECL),

Northern Coalfields Limited (NCL),

Mahanadi Coalfields Limited (MCL) and

Central Mine Planning & Design Institute Limited (CMPDIL).

In addition, CIL has a foreign subsidiary in Mozambique namely Coal India Africana Limitada (CIAL).

The mines in Assam i.e. North Eastern Coalfields continue to be managed directly by CIL. Similarly, Dankuni Coal Complex also continues to be on lease with South Eastern Coalfields Limited during the year under review.

MCL has two subsidiaries viz. MNH Shakti Ltd. and MJSJ Coal Ltd. with 700/c and 60 % equity holding respectively.

1.0 NOTABLE ACHIEVEMENTS

1. Maharatna Status to Coal India

On 11th April'2011, Govt, of India had conferred Coal India Ltd. "Maharatna Status". Chairman, CIL received the certificate from Her Excellency 'The President of India' in a function organised by SCOPE and Department of Public Enterprises at New Delhi.The Maharatna status provides greaterfinancial autonomy to expand operations both domestically and globally. In fouryears' time from a normal profit making PSU, CIL became Mini Ratna, Navaratna and Maharatna. '

2. Coal India's IPO - a resounding success

21st October 2010, thedayCIL's IPO closed, would be etched as a historic event in the annals of Coal India Limited. The day unravelled the value and the true potential of CIL. Innumerable road shows involving countless man hours of effort across the country and in US, Europe and other markets had resulted in the grand success of CIL's IPO. CIL's IPO the largest so far in Indian capital market was over- subscribed 15.2 times. The resounding success of record breaking result of the company's public offer with the aggregate funds amounted to Rs. 2,35,276.55 crores was so far unheard of in the Indian capital market. The over- subscription of the issue happened in all the three major segments i.e. Qualified Institutional Buyers (QIB), High Networth Individuals (HNI) and Retail. The QIB for which there was a reservation of 50% of the net issue of the shares, the over-subscription was as much as 24.62 times. Around 784 QIB investors had put in over US dollar 38 billion i.e. Rs.171469.64 crores which by itself is also an all time high in the history of Indian IPO. In the retail segment nearly 16.36 lakhs applications were received - the highest among all PSU IPOs so far amounting to Rs. 63639.26 crores. This is also the highest so far in the Indian capital market. Interestingly, the foreign investors alone had put in around US $ 27 Billion which is equal to first ten months of FN investment in India this year.

3. Coal India's IPO gets top grading

CRISIL the leading credit rating agency in the country had assigned maximum grading of 5 to CIL's IPO - the best for any public sector. The grading indicated that the fundamentals of the IPO were strong compared to other listed securities in the country. Similar grading was given by other credit rating agencies like ICRA & CARE. Not many companies have this kind of rating.

4. Coal India Shares listed in Stock Exchanges

4th November 2010, CIL's stock was listed in stock exchanges i.e. BSE and NSE. It was a historic day for CIL CIL share was listed at Z29V- and closed over Rs. 342/- on the first day of trading against the offer price ofRs. 245/, Most importantly, a national asset was offered to public as "peoples' ownership" inPSUs.

On 17th May, 2011, CIL became the most valuable PSU with a market capitalisation ofRs. 2.51 lakh crore. CIL also became the second highest market capitalization company in India from that date. BSE has announced on 17th June, 2011 to include CIL's shares in its benchmarkSensex from 8th August, 2011.

5. Dow Jones Safe 100 Index

CIL made it to'Dow Jones SAFE 100 Index', when the leading global index provider announced the results of annual review of Dow Jones SAFE 100 Index, on 10 March 2011 in New York. CIL is one among the 5 Indian companies to have made it to the Index. The Dow Jones SAFEIOOIndex measures the performance of 100 blue-chip companies in five of the eight member states of the South Asian Federation of Exchanges (SAFE).

6. FE500

CIL had featured in "FE 500" a Financial Express Research Bureau Project brought out by 'The Indian Express', a news daily in March 2011. In fact, CIL is among the super league oftoP10firmsandoccupiesacompositerankof5(for2010). In terms of Gross Profit CIL is ranked 5th and CIL had also entered the top 10 in terms of market capitalization.

7. Coal India and Shipping Corporation of India sign MoU

In order to bridge the increasing gap between availability from domestic production of CIL and quantity committed through Fuel Supply Agreements and Letter of Assurances already issued, which is likely to touch 250 million tonnes by the end of XII Plan, CIL has planned to import coal for supply to its consumers. CIL is in process of sourcing coal through long-term off-take contracts with overseas mining companies, apart from acquisition of mining properties abroad.

Currently imported coal is supplied by both private and PSU players at consuming ends, particularly to power stations, with comprehensive quality and quantity assurance, whereas, in case of indigenous coal, CIL's term of sale is Free on Rail at Colliery. In order to create comprehensive end-to-end logistic solution from load port to consuming end, CIL signed a Memorandum of Understanding with The Shipping Corporation of India Limited in December 2010for promoting a Joint Venture Company (JVC). Primary objective of the JVC are i) Owning/chartering of vessels ii) Draft surveying iii) Inspection of cargo iv) Stevedoring at unloading port in India including

unloading of vessels, customs clearance, shore clearance and stacking v) Indenting wagons from railways, loading of wagons, quality analysis and delivery of coal at power stations

8. CMPDIsetsupaLab

Central Mine Planning & Design Institute, Ranchi based Mine Consultancy subsidiary of Coal India Limited had established a Cement and Resin Capsule Testing Lab, which was inaugurated on 15th August'10. It will help in testing and establishing the quality of cement and resin capsules which enhances the safety in underground mines.

9. Coal India scholarship for Below Poverty Line Students

Coal India Limited as a part of its CSR activity had introduced Coal India Scholarship' to 100 Below Poverty Line (BPL) students and 25 wards of land losers to pursue Engineering in NTs, NITs, select Government Engineering colleges and Medical in Central Government Medical colleges. The scholarships, which will be awarded every year, came into effect from the academic session 2010-11 onwards. The scholarship covers cost of the education, hostel fees, incidental fee to the tune of Rs.10000 per year. This is being done on pan India basis.

Awards & Accolades for Coal India Limited in 2010-11

CQE International Award: CIL bagged a prestigious International Award in Geneva on 7th March 2011. CIL was conferred with the "Century International Quality ERA Award (CQE)" in the Gold Category in recognition of commitment to Quality, Leadership, Technology and Innovation. It was stated that Coal India represents success for India in the Business world. The awards were given by Business Initiative Directions (BID) - a leading private organization focused on the Quality Mix Plan.

CMPDI SCOPE Meritorious Award: Central Mine Planning and Design Institute Limited (CMPDIL), the Mini Ratna consultancy arm of Coal India Limited had bagged the prestigious "SCOPE Meritorious Award for R&D, Technology Development&lnnovation"fortheyear2009-10.lncidentally, CMPDIL is the first subsidiary of CIL to have been awarded coveted SCOPE trophy.

National Geo-Science Award to Shri N C Jha: Shri N C Jha Chairman, Coal India Limited was conferred the coveted "National Geo-Science Award", in February 2011 (then Director - Technical, CIL), instituted by Ministry of Mines, Government of India. The award was presented by Shri Hamid Ansari, Hon'ble Vice-President of India.

National Award to Shri Partha S Bhattacharyya: Shri Partha S Bhattacharyya, (the then) Chairman, Coal India Limited was conferred with the coveted National Award in the Corporate Excellence category on 13th January 2011 at Siri Fort Auditorium, New Delhi in an award function organized by 'Ramakrishna - Vivekananda International Foundation'.

SCOPE Special Jury Award to Shri Partha S Bhattacharyya:

Sri Partha S Bhattacharyya, (the then) Chairman, Coal India Limited on 15th December 2010 received the coveted "SCOPE Special Award of the Jury" from Dr. Manmohan Singh, Hon'ble Prime Minister of India in an official award ceremony "MoU Excellence Awards & SCOPE Excellence Awards 2008- 09" held in New Delhi. The function was jointly organized by Department of Public Enterprises and Standing Conference of Public Enterprises (SCOPE).

India Pride Awards: CIL was conferred with "India Pride Awards 2010" in two categories that the company had participated in. CIL received the Gold Trophy in 'Energy & Power' category and Silver Trophy in CSR & Environment' category. The awards have been initiated by Dainik Bhaskar, a leading Hindi language media house along with DNA - the English language news daily, aimed to recognize the outstanding contribution made by PSUs.

Shenhua Cup: CIL had won five medals at the Shenhua Cup, an international mining skill competition held in China, organized by Shenhua Group Corporation Limited, the largest coal company in China. Coal India won one Gold medal in 16G Grader, three silver medals in D 475A Dozer, DMH Drill and in underground continuous miner and one bronze medal in Longwall.

National President NIPM, Shri R Mohan Das: Sri R. Mohan Das, Director (Personnel & Industrial Relations), CIL has been elected as National President of NIPM (National Institute of Personnel Management) in their National Council biennial election for the year 2010-12.

HR Awards: CIL has bagged five awards for its Human Resources Practices at Asia's Best Employer Brand Awards at Suntec Centre in Singapore. While (the then) Chairman, CIL, Shri Partha S Bhattacharyya was honoured with " CEO with HR Orientation Award", Shri R Mohan Das, Director- (Personnel & Industrial Relations), CIL was bestowed with "HR Leadership Award" for his contribution in the field of Human Resources. In the organizational category, CIL received awards for its best HR Strategy in line with Business, Continuous innovation in HR Strategyat workand Excellence in Training.

Industrial Relations Award: CIL was conferred the "Best Practices in Industrial Relations Award (IR)" for 2010-11 in an Annual Awards function organized by Hooghly Chamber of Commerces Industry. CIL bagged the award in recognition of its commendable efforts in managing its IR functions.

CM President's Award: Sri Partha S Bhattacharyya, (the then) Chairman,Coal India Limited, was awarded the Confederation of Indian Industry (CM) President's Award for Outstanding Contribution to CM for 2009-10 at a function in New Delhi on 11 May 2010.

2.0 FINANCIAL PERFORMANCE

2.1 Financial Results

CIL is one of the largest profit making, tax and dividend paying enterprises. CIL and its subsidiaries have achieved an aggregate pre-tax profit of Rs.16463.23 crores in the year 2010-11 against a pre-tax profit of Rs.13964.93 crores in the year 2009-10.

Company-wise position with regard to profit ( ) earned or loss (-) during 2010-11 vis-a-vis in 2009-10 are given in the table appended below:-

Figuresin Rs. crores

Company 2010-11 2009-10

Profit ( )/ Loss (-) Profit ( )/ Loss (-)

ECL ( ) 106.57 ( ) 333.40

BCCL ( ) 1093.69 ( ) 793.93

CCL ( ) 1860.22 ( ) 1533.05

NCL ( ) 3956.36 ( ) 3766.30

WCL ( ) 1067.97 ( ) 931.02

SECL ( ) 3777.12 ( ) 3063.57

MCL ( ) 4039.30 ( ) 2953.90

CMPDIL ( ) 23.69 ( ) 19.61

CIL/NEC ( ) 4723.37 ( ) 3870.40

Sub-Total < > 20648.29 < > 17265.18

Less: Dividend from Subsidiries (-) 4237.41 (-) 3367.36

Total < > 16410.88 < > 13897.82

Adjustment for deferred

Revenue incomes ( ) 52.35 ( ) 67.11

Overall Profit as per Consolidation of Accounts ( ) 16463.23 ( ) 13964.93

(-) Recognition of revenue in respect of interest claim and apex charges attributable to BCCL in years' account have been deferred by CIL in consistence with the provision of AS-9 of ICAI of Revenue Recognition.

Highlights of Performance

The highlights of performance of Coal India Limited including its Subsidiaries in the year 2010-11 compared to previous two years are shown in the table below:

2010-11 2009-10 2008-09

Production (in million tonnes) 431.32 431.26 403.73

Off-take ofCoal (in million tonnes) 424.50 415.96 401.46

Sales (Gross) (Rs./Crores) 60245.21 52187.79 46131.24

Gross Profit (Rs./Crores) 16525.15 14101.39 5900.60

Capital Employed (Rs./Crores) 30745.03 23450.74 16963.98

Net Worth (Rs./Crores) 33313.82 25793.68 19165.04

Profit before Tax (Rs./Crores) 16463.23 13964.93 5744.10

Profit after Tax (Rs./Crores) 10867.35 9622.45 2078.69

Gross Profit /Capital Employed (in %) 53.75 60.13 34.78

Profit before Tax/ Net Worth (in %) 49.42 54.14 29.97

Profit afterTax/ Net Worth (in %) 32.62 37.31 10.85

Earning Per Share (Considering Face Value of Rs. 10 pershare) 17.19 15.22 3.28

Dividend per Share

(Considering FaceValue ofRs. 10 pershare) 3.90 3.50 2.70

Coal Stock (Net) (in terms of No. of months of net sales) 1.06 0.86 0.77

Sundry Debtors (Net) (in terms of No of months of gross sales) 0.60 0.49 0.46

Note :The Consolidated Accounts have been prepared according to the provisions of the Accounting Standard -21 on "Consolidated Financial Statements" issued by the Institute of Chartered Accountants of India. Since the non-recognition of interest etc. in Holding Company's Accounts, from one of its subsidiaries (as per Accounting Standard - 9) has been ignored in such consolidation, the profit shown in Consolidated Accounts may be read with such deviation.

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. 4237.41 crores as against dividend of W367.36 crores in previous year, the subsidiary- wise break-up of which are as under:-

Rs.In Crores Name of the Subsidiary

CCL 386.32

(195.97) NCL 1295.06

(1176.56) WCL 387.42

(201.26) SECL 1099.60

(753.57) MCL 1069.01

(1040.00)

Figures in brackets are for previous year.

Your Directors recommended dividend payment ofRs. 2463.38 crores @ Rs. 3.90 (approx) per share on 6316364400 Equity Shares of Rs. 10/- each fully paid valued at Rs. 6316.36 crores. Out of total dividend, Govt of India gets Rs. 2217.04 crores and other investors get Rs. 246.34 crores.

3.0 Coal Marketing

3.1 (a) Off-take of Raw Coal

Offtake of raw coal continued to maintain its upward trend and reached 424.50 million tonnes for fiscal ended March, 2011, surpassing previous highest figure of 415.96 million tonnes achieved during the last year. Although coal production growth was marginal due to environmental constraints, offtake however increased by another 2.1 % over last year. Against original offtake target which was based on production target of 460.50 million tonnes, actual off take was 92.2 %. The off-take could have improved further but for certain impediments like less availability of rolling stock in certain coal fields of MCL, SECL, deteriorating law and order situation in coalfields of CCL, MCL which played spoil sport for coal offtake in this year.

Company-wise coal off-take:

Company-wise target vis-a-vis actual off-take for 2010-11 and 2009-10 are shown below: -

(Figs. In Mt) 2010-11 2009-10 Growth over last year Company Target Achieved % Achieved Achieved Abs. %

ECL 33.00 29.74 90.1 29.19 0.55 1.9

BCCL 29.00 29.39 101.3 25.11 4.28 17.0

CCL 50.00 46.38 92.8 44.21 2.17 4.9

NCL 72.00 64.21 89.2 66.65 -2.44 -3.7

WCL 46.50 42.56 91.5 45.51 -2.95 -6.5

SECL 112.00 109.02 97.3 106.07 2.95 2.8

MCL 116.75 102.10 87.5 98.15 3.95 4.0

NEC 1.25 1.10 88.0 1.07 0.03 2.8

CIL 460.50 424.50 92.2 415.96 8.54 2.1

From above it may be seen that BCCL had not only outperformed its target but also exceeded last year's level. Barring NCL and WCL all other coal companies registered a positive growth in off-take. While in case of NCL, less availability of coal was the main contributor, in case of WCL accident in Umrer mines and consequent less production, occassional transport bottlenecks, shut down of Chandrapura power plant and consequent less dispatches are attributable to less dispatches. In case of ECL shortfall against target may be ascribed to derailment in Kahalgaon route for quite sometime and consequent less placement of MGR rakes at Rajmahal, and less availability of coal at Ranigunj. While in case of CCL, adverse law and order situation, affecting transportation of coal to sidings, less acceptance of medium coking coal by SAIL stood in the way of higher dispatches, in the case of MCL apart from law and order situation, less supply of wagons, less acceptance of coal by Talcher STPS through MGR, tooka toll in dispatches. Offtake in SECL could not go further up due to heavy rain in 2nd quarter, less supply of wagons at Korba area and less offtake of coal by private washeries.

(b) Sectorwise dispatch of coal & coal products:

Sector-wise break-up of dispatch of coal & coal products for 2010-11 against target and last year's actual is given below:

(Figs, in million tonnes)

Year 2010-11 2009-10 Growth over Last Year Sector Target Despatch %Satn. Actual Abs. %

Power (Util) 332.78 304.15 91.4 298.03 6.12 2.1

Steel 4.37 4.21 96.4 3.78 0.43 11.5

Cement 7.51 9.69 129.0 9.25 0.44 4.7

Fertilizer 3.01 2.78 92.4 2.61 0.17 6.5

Export 0.02 0.00 - 0.01 -0.01 - Others 109.82 102.61 93.4 101.46 1.15 1.1

Despatch 457.51 423.44 92.6 415.14 8.30 2.0

3.2 Dispatch of coal and coal products by various modes:

Dispatch of coal and coal products during 2010-11 went up to 423.44 million tonnes from 415.14 million tonnes registering a growth of 2o/o. Barring MGR and other modes, all other modes saw dispatches being more than last year. In case of ropeways, less availability of coal at Dudhichua and less lifting by Chandrapur powerstations affected dispatches. In case of MGR less acceptance of coal by Kahalgaon, Talcher STPS reduced chances of better dispatch. Major increase continued to be in road despatches because of increased movement of coal by road to private washeries and e-auction dispatched by road to Goods Sheds of Railways for rebooking in wagons.

Dispatch of coal and coal products by various modes for the years 2010-11 and 2009-10 is given below:

(Figs, in million tonnes)

Year 2010-11 2009-10 Growth over Last Year

Mode Target Despatch %Satn. Actual Abs. %

Rail 256.03 215.81 84.3 210.37 5.44 2.6

Road 94.24 112.35 119.2 105.63 6.72 6.4

MGR 96.54 83.62 86.6 86.58 -2.96 -3.4

Other Modes 10.70 11.66 109.0 12.56 -0.90 -7.2

Overall 457.51 423.44 92.6 415.14 8.30 2.0

3.3 Wagon Loading

Sustained efforts and regular coordination with railways at different levels saw wagon loading improve by another 306 boxes per day over last year. However in relation to target, materialization was 87.50/c. Company wise performance shows ECL, BCCL and NEC not only exceeding last years level of loading but also surpassed their target. Major deviation from target had taken place in CCL, MCL, WCL and SECL. While the loading potentials of BCCL, SECL- Korba and MCL-lb could not be utilised due to inadequate and timely supply of empty wagons, in some of the coalfields like CCL- Karanpura and MCL-Talcher desired level of rail dispatch was affected due to less transportation of coal to sidings arising out of deteriorating law & order conditions. Dispatch at WCL was also affected due to constraints in production, transportation bottleneck and shut down of ChandrapurTPS in the 1st half of the year.

Figs, in Box/Day

2010-11 2009-10 Growth over last year Company Target Achieved % Achie -ved Achieved Abs. %

ECL 749 802 107.1 755 47 6.2

BCCL 1101 1107 100.5 931 176 18.9

CCL 1782 1423 79.9 1372 51 3.7

NCL 1029 1013 98.4 980 33 3.4

WCL 916 820 89.5 969 -149 -15.4

SECL 2019 1796 89.0 1791 5 0.3

MCL 3284 2540 77.3 2402 138 5.7

NEC 37 50 135.1 45 5 11.1

CIL 10917 9552 87.5 9246 306 3.3

3.4 Consumer satisfaction

(i) In order to ensure enhanced customer satisfaction,special emphasis had 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 had built up coal handling plants with a capacity of about 258 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 tonnes.

(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 24 Surface Miners have been deployed in MCL, CCL 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 95o/0 of total production of CIL. On overall basis, large consumers having annual quantity of 0.4 MT 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 93.3 % in respect of supplies to power sector during 2010-11. Consumers covered under the agreed sampling arrangement are required to pay as per the analyzed grade of coal. This system is working satisfactorily.

(vi) Electronic weighbridges with the facility of electronic printout have been installed at rail loading points to ensure that coal despatches are made only after proper weighment. For this purpose, Coal Companies have installed 166 weighbridges in the Railway Sidings and 474 weighbridges for weighment of trucks. Coal Companies have also taken actions for installation of standby weighbridges to ensure 100% weighment.

During 2010-11, about 98.3% of coal despatches to powerhouses have been weighed as compared to about 98.25% during 2009-10. Sized coal dispatches to powerhouses during 2010-11 had been 98.6 %compared to about 98.5% during 2009-10.

3.5 Steps Taken Towards Liberal Marketing of Coal:

Almost all provisions contained in New Coal Distribution Policy have been successfully implemented by CIL. Status of implementation of different provisions under New Coal Distribution Policy (NCDP) is as under:

(i) At the end of March, 2011, against 306 million tonnes allocated by CEA for all power stations existing and drawing coal as on 31.3.09, total quantity covered under FSA had been 286.335 million tonnes thereby showing a materialization of 94%. Regular follow up was made with concerned power utilities to ensure that entire quantity gets covered under FSA. Apart from above, for new power stations (post NCDP) who are to draw coal through Letter of Assurance (LOA) route followed by FSA/ MOU, a quantity of 9.932 million tonnes per annum is the entitlement. Further, power stations having pre NCDP linkage are also entitled to draw coal under MOU for a quantity of 20.299 million tonnes per annum.

(ii) Out of 1211 valid linked units other than power and steel plants with eligible FSA quantity of 64.95 million tonnes, 1189 units have executed FSAs for 64.27 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, 21 states / UTs sent their nomination of 28 state agencies for the year 2010-11 of which 23 state agencies have signed FSA for 4.1 million tonnes and drawing coal accordingly.

iv) After implementation of NCDP, 658 new consumers in power, sponge iron, Captive power and cement sector were served notices with a request to deposit commitment guarantee (CG) out of which 543 units submitted CG. 539 units were issued LOA for completion of necessary milestones. 277 units completed their milestones and executed FSAs.

(v) In case of those new Consumers who are not covered by SLC (LT), allocation of coal through LOA route has been kept on hold due to limited coal availability after meeting contractual obligations of existing consumers and new consumers covered under SLC (LT) through LOA route. Consumption norms developed by Central Industrial Mining & Fuel Research are also under process of finalization. Model LOAs developed for consumers not covered under SLC (LT) are also yet to be approved.

(vi) After sustained efforts, Forward E Auction scheme is gradually getting stabilized. During the year ended March, 2011, quantity allocated through auction was 5.61 million tonnes as against 0.55 million tonnes allocated in last year. No. of bidders who participated also went up to 264 from 22 in last year. The quantity allocated under spot e auction also maintained its rising trend. During the period under review, 46.56 million tonnes of coal was allocated under spot e- auction to the successful bidders as against 45.73 million tonnes of coal allocated last year. The margin earned over notified price for sale through E-auctions also improved to 8O.70/0 during the year as compared to 59.8% during last year thereby showing the popularity of the scheme.

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 through Global tender 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.

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 2010-11 after provision for stock deterioration etc. was Rs.4439.82 crores, which was equivalent to 1.06 month value of net sales. The company-wise position of stocks held on 31.03.2011 and on 31.03.2010 are given below:

Figures in Rs. Crores

Net Value of stock Net Value of stock Stock in terms of no. of months of Net Sales

Company as on 31.03.2011 as on 31.03.2010 As on 31.03.11 As on 31.03.10

ECL 430.58 320.68 0.88 0.74

BCCL 1025.94 852.70 2.00 2.27

CCL 1292.31 1006.38 2.57 2.20

NCL 199.81 75.05 0.31 0.12

WCL 360.37 218.26 0.72 0.45

SECL 624.63 348.25 0.70 0.45

MCL 473.47 340.99 0.76 0.65

NEC/CIL 32.71 24.17 0.95 0.72

Total 4439.82 3186.48 1.06 0.86

3.8 Coal Sales Dues

Net Coal Sales dues outstanding as on 31.03.2011 after providing of Rs. 1484.52 crores (previous year Rs. 1453.75 crores) for bad and doubtful debts, was Rs. 2979.83 crores (previous year Rs. 2110.42 crores) which is equivalent to 0.60 months combined gross sales of CIL as a whole ( previous year 0.49 months). Subsidiary-wise break-up of coal sale dues outstanding as on 31.03.2011 as against 31.03.2010 are shown below:-

Figures inRs. Crores

Coal Sales dues Coal Sales dues

Company as on 31.03.2011 as on 31.03.2010

Gross Net Gross Net

ECL 1044.61 959.20 840.86 746.79

BCCL 1131.47 618.13 849.67 393.80

CCL 1461.94 941.64 1008.18 512.45

NCL 104.66 99.40 128.25 123.00

WCL 147.37 25.20 263.31 109.18

SECL 461.23 255.33 434.47 212.35

MCI 102.30 80.92 28.66 12.83

NEC/CIL 10.77 0.01 10.77 0.02

Total 4464.35 2979.83 3564.17 2110.42

3.9 Payment of Royalty, Cess and Sales Tax, Stowing Excise Duty & Entry Tax During the year 2010-11, CIL and its Subsidiaries paid/adjusted Rs. 9923.27 crores (previous year Rs. 7499.94 crores) towards Royalty, Cess, Sales Tax and other levies as detailed below:-

Figures in Rs. Crores

2010-11 2009-10

Royalty 4799.52 4697.68

Cess & Others 1339.07 804.86

Sales Tax/ VAT 1757.81 1542.20

Stowing Excise Duty 424.36 410.41

Central Excise Duty 233.49 --

Clean Energy Cess 1286.61 --

Entry Tax 82.41 44.79

Total 9923.27 7499.94

4. Coal Production

4.1 Raw coal production

Production of raw coal during 2010-11 was 431.32 million tonnes as against 431.26 million tonnes produced in 2009-10. The company- wise production is given below:

(Figures in million tonnes)

Company Coking Non-Coking Total

2010-11 2009-10 2010-11 2009-10 2010-11 2009-10

ECL 0.05 0.06 30.75 30.00 30.80 30.06

BCCL 25.29 19.16 3.72 8.35 29.01 27.51

CCL 15.45 16.21 32.07 30.87 47.52 47.08

NCL 0.00 0.00 66.25 67.67 66.25 67.67

WCL 0.40 0.55 43.25 45.19 43.65 45.74

SECL 0.16 0.15 112.55 107.86 112.71 108.01

MCL 0.00 0.00 100.28 104.08 100.28 104.08

NEC 0.00 0.00 1.10 1.11 1.10 1.11

CIL 41.35 36.13 389.97 395.13 431.32 431.26

4.2 Production from underground and opencast mines.

Coal production from underground mines in 2010-11 was 40.02 million tonnes compared to 43.25 million tonnes in 2009-10. Production from open cast mines during 2010-11 was 90.7% of total coal production. Company-wise production is as under:

(Figures in Million tonnes)

Company Underground Production Opencast Production Total Production

2010-11 2009-10 2010-11 2009-10 2010-11 2009-10

ECL 7.37 8.23 23.43 21.83 30.80 30.06

BCCL 3.70 3.90 25.31 23.61 29.01 27.51

CCL 1.27 1.47 46.25 45.61 47.52 47.08

NCL 0.00 0.00 66.25 67.67 66.25 67.67

WCL 8.71 9.62 34.94 36.12 43.65 45.74

SECL 16.80 17.83 95.91 90.18 112.71 108.01

MCL 2.17 2.20 98.11 101.88 100.28 104.08

NEC 0.002 0.00 1.10 1.11 1.10 1.11

CIL 40.02 43.25 391.30 388.01 431.32 431.26

4.3 Hard Coke and Washed Coal (Coking) Production

Subsidiary-wise production of Hard coke and Washed coal (coking) is given below:

(Figures in lakh tonnes)

Company Hard Coke Washed Coal(Coking)

2010-11 2009-10 2010-11 2009-10

ECL - - - -

BCCL 0.00 0.00 15.49 13.26

CCL - - 14.53 13.92

NCL - - - -

WCL - - 1.91 2.46

SECL - - - -

MCL - - - -

NEC - - - -

CIL 0.00 0.00 31.93 29.64

4.4 Overburden Removal

Overburden removed during 2010-11 was 732.13 million cubic meters as against 682.03 million cubic meters in 2009-10 thereby recording a growth of 7.3%. Company-wise details of overburden removal is shown below:

(Figures in Million Cubic Mtrs.)

Company 2010-11 2009-10

ECL 56.25 49.74

BCCL 83.23 61.63

CCL 62.52 56.05

NCL 182.22 177.98

WCL 115.83 133.97

SECL 137.57 129.80

MCL 88.70 66.07

NEC 5.81 6.79

CIL 732.13 682.03

5. Population of Equipment

The population of major Opencast Equipment (Heavy Earth Moving Machinery) as on 1.4.2011 and on 1.4.2010 alongwith their performance status in terms of availability & utilisation expressed as percentage of CMPDIL norm is tabulated below:

Equipment No. of Equipment Indicated as % of CMPDIL Norm As on As on Availability Utilisation 1.4.2011 1.4.2010 2010-11 2009-10 2010-11 2009-10

Dragline 40 40 92 92 91 99

Shovel 754 747 90 91 78 85

Dumper 3217 3366 99 99 70 73

Dozer 981 991 93 92 59 60

Drill 709 713 98 99 74 77

6. Capacity Utilisation

SYSTEM CAPACITY UTILISATION

The overall system capacity utilisation of CIL as a whole for the year 2010-11 was 89.31 %. It was 90.25 % during 2009-10. Subsidiary- wise details in term of percentage vis-a-vis preceding year was as under:

in%

Company 2010-11 2009-10

ECL 94.88 97.58

BCCL 115.78 94.46

CCL 94.88 91.72

NCL 71.68 76.23

WCL 92.94 113.19

SECL 105.39 98.32

MCL 83.20 80.55

NEC 66.66 76.93

Total CIL 89.31 90.25

8 PROJECT FORMULATION:

8.1 Preparation of Reports (PR): As prioritized by subsidiary companies of Coal India Limited, preparation of Project Reports for new/expansion/re-organization mines was carried out during the year 2010-11 for building additional coal production capacity. Revision of PRs/Cost Estimates for projects was also taken up along with the new PRs. Thrust was laid on preparation of reports for identified Projects of XI Plan & Master Plans of various coalfields. An exercise was also carried out for identification of XII plan projects.

Other Important jobs undertaken during the year:

1. Feasibility reports/Conceptual reports and customization of bid document for coal washeries.

2. Operational plans for large OC mines.

3. Environment management plans.

4. Mine closure plan.

5. Reports for dealing with fire.

6. Detailed designing & drawing, NIT, tender scrutiny.

7. Mine capacity assessment of UG & OC mines of CIL

8. Technical studies related to operation of UG & OC mines of CIL.

9. Performance analysis of HEMMs.

10. Preparation of global bids for deployment of Continuous Miner, PSLW, High speed Incline drivage & shaft sinking in UG mines of CIL.

11. Preparation of Model Bid Document & Conceptual report for setting up of FBC based thermal power plants using washery rejects.

Expert consultancy services: During the year 2010-2011, 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, Effluent Treatment Plants & Illumination Survey etc.

In all, during the year under review, CMPDI had prepared 383 reports which included 19 Geological Reports, 37 Project Reports/Revised Cost Estimates, 14 Operation Plans, 162 Other Reports and 151 Environment Management Plans (including 126 applications as per Form-I for EMP clearance).

7. Productivity: Output per Manshift (OMS)

Output per Manshift (OMS) during 2010-11 improved to 4.73 Tonnes from 4.47 Tonnes of previous year. Company-wise position is given in the following table:

(Figures in Tonnes)

Company Underground OMS Opencast OMS Overall OMS

2010-11 2009-10 2010-11 2009-10 2010-11 2009-10

ECL 0.45 0.47 8.14 7.29 1.60 1.46

BCCL 0.39 0.39 5.64 4.85 2.09 1.85

CCL 0.34 0.35 5.45 5.24 3.88 3.66

NCL 0.00 0.00 13.52 13.19 13.52 13.19

WCL 1.09 1.12 4.13 4.12 2.65 2.64

SECL 1.32 1.33 20.22 18.89 6.47 5.96

MCL 1.25 1.29 20.50 18.89 15.37 14.66

NEC 0.004 0.00 7.10 7.85 2.16 2.00

CIL 0.77 0.78 10.06 9.51 4.73 4.47

8.2 PROJECT IMPLEMENTATION:

(a) The following 6 coal projects, each costingRs. 20 crores& above, with ultimate capacity of 13.65 Mty and sanctioned capital of Rs. 314.18 Crs. were completed during 2010-11:

SL. Cos Name of Projects Type Sanctioned Capacity (MTY) Sanctioned Capital
1 SECL SEAM III ANJAN HILL UG 0.42 46.75

2 SECL JHIRIA UG 0.33 32.07

3 SECL CHAAL OC 3.00 50.38

4 SECL GAYATRI UG 0.30 21.92

5 MCL BASUNDHARAWESTEXPN OC 4.60 46.52

6 MCL LAKHANPURPHII OC 5.00 116.54

TOTAL 13.65 314.18

(b) Another 8 coal projects, each costing Rs. 20 crores & above, with an ultimate capacity of 15.88 Mty and sanctioned capital of Rs. 956.81 Crs. had started contributing production during the year 2010-11:

SL. Cos Name of Projects Type Sanctioned Capacity (MTY) Sanctioned Capital (Rs.Crs.)

1 ECL SARPIAUG UG 0.76 147.86

2 CCL TARMI OC 1.00 35.54

3 CCL GOVINDPURPHII OC 1.20 142.11

4 WCL URDHAN OC 0.50 43.50

5 SECL HALDIBARIUG UG 0.42 47.92

6 SECL AMERA OC 1.00 42.83

7 SECL AMGAON OC 1.00 39.28

8 MCL KANIHA OC 10.00 457.77

TOTAL 15.88 956.81

Status of Ongoing Projects:

Presently there are 117 mining and 13 non-mining projects, costing Rs. 20 crores & above, under different stages of implementation. Out of 117 mining projects, 76 are on schedule & 41 are delayed. Out of 13 non-mining projects, 10 are on schedule, 3 are delayed

Projects Total projects Projects on schedule Projects delayed

Mining 117 76 41

Non Mining 13 10 03

Total 130 86 44

Reasons of delay:

Mining Projects:

SL. REASONS FOR DELAY NO OF PROJECTS

1 ADVERSE GEOMINING CONDITION 02

2 LAND ACQUISITION 24

3 MISCELLANEOUS 15

Total 41

Non-mining Projects:

SL. REASONS FOR DELAY NO OF PROJECTS

1 ADVERSE GEOMINING CONDITION -

2 LAND ACQUISITION 1

3 MISCELLANEOUS 2

Total 3

8.3 PROJECTS SANCTIONED:

(a) No Advance Action proposal had been sanctioned by Government during 2010-11.

(b) No Expansion Project had been sanctioned by the Govt, during 2010-11.

(c) One OC project, costing more than Rs. 20 Crs, with an ultimate sanctioned capacity of 10.00 Mty & sanctioned capital of Rs. 1008.12 Crs had been sanctioned by CIL Board during 2010-11.

SL. Cos Name of Projects Type Sanctioned Capacity (MTY) Sanctioned Capital
1 SECL GEVRAEXPNOC (25-35 Mty) OC 10.00(Incr) 1008.12(Incr)

Total 10.00 1008.12

(d) 2 Non-mining projects (both washeries) with a capacity of 10.00 Mty & sanctioned capital ofRs. 432.63 Crs had also been approved by CIL Board during 2010-11.

SL. Cos Name of Projects Sanctioned Capacity (MTY) Sanctioned Capital
1 BCCL MADHUBANDH WASHERY 5.00 262.99

2 BCCL PATHERDIH WASHERY 5.00 169.64

Total 10.00 432.63

(e) Under their delegated powers to sanction projects, the Subsidiary Company Board had sanctioned one OC project costing more than Rs. 20 Crs, with an ultimate capacity of 5.00 Mty & sanctioned capital of Rs. 27.82 Crs, during 2010-11:

SL. Cos Name of Projects Type Sanctioned Capacity (MTY) Sanctioned Capital
1 MCL SAMLESWARI IV OC 5.00 27.82

Total 5.00 27.82

(f) 5 Non Mining projects, costing more than Rs. 20 Crs, had also been sanctioned by the subsidiary companies during the year 2010-11, with a capacity of 61.00 Mty & Sanctioned capital of Rs. 819.36 Crs.

SL. Cos Name of Projects Sanctioned Capacity Sanctioned Capital (MTY) (Rs.Crs.)

1 MCL CONSTRUCTION &COMMISSIONING OF IB VALLEY WASHERY 10.00 181.00

2 MCL CONSTRUCTION & COMMISSIONING OF HINGULA WASHERY 10.00 181.00

3 MCL CONSTRUCTION OF SILO DISPATCH KULDAOC 10.00 35.95 (FOR BASUNDHRA WASHERY)

4 MCL COAL TRANSPORTS SILO ARRANGEMENT 15.00 183.86

AT ANANTA SPUR SIDING V&VI

5 MCL COAL TRANSPORTS SILO ARRANGEMENT AT LINGRAJ OCP 16.00 237.55

Total 61.00 819.36

8.4 REVISED PROJECT REPORT / REVISED COST ESTIMATES:

(a) No RPR / RCEs were sanctioned by Government during 2010-11.

(b) No RPR / RCEs were sanctioned by CIL during 2010-11.

(c) RPR / RCEs for 1 OCP & 2 UG projects were sanctioned by Subsidiary Company Boards during 2010-11, with an ultimate sanctioned capacity of 3.25 Mty & a sanctioned capital of Rs. 205.75 Crs.

SL. Cos Name of Projects Type Sanctioned Capacity (MTY) Sanctioned Capital
1 WCL GONDEGAON-GHATRONAEXPN OC 2.00 73.88

2 SECL BAGDEVAEXPNRPR UG 0.75 87.12

3 SECL JHILMILIRPR UG 0.50 44.75

Total 3.25 205.75

9. CAPITAL EXPENDITURE

Overall Capital Expenditure during 2010-11 was Rs. 2539.72 crores as against Rs. 2809.99 crores in the previous year, subsidiary-wise details of which are given below:-

Figures in Rs. Crores

Company 2010-11 2009-10

(BE) Actual (BE) Actual

ECL 400.00 184.93 210.00 165.02

BCCL 350.00 320.94 230.00 293.35

CCL 350.00 200.76 420.00 321.31

NCL 800.00 310.53 730.00 545.45

WCL 350.00 239.74 230.00 252.34

SECL 600.00 581.87 730.00 770.67

MCL 650.00 608.10 200.00 404.19

CMPDIL 15.00 10.74 15.00 11.42

NEC/CIL/Others 285.00 82.11 135.00 46.24

Total 3800.00 2539.72 2900.00 2809.99

Capital Expenditure incurred during 2010-11 is about 66.83% of BE (96.90% in 2009-10).

10. CAPITAL STRUCTURE

The authorized share capital of the company as on 31.03.2011 was Rs. 8904.18 crores, distributed between Equity and Non-cumulative redeemable preference shares as under:

(i) 90,41,800 Non-cumulative 10% redeemable Rs. 904.18 crores

Preference Shares ofRs. 1000/-each (Previous Year 90,41,800 Non-cumulative 10% Redeemable Preference Shares of Rs. 1000/- each)

(ii) 800,00,00,000 Equity Shares of Rs. 10/- each Rs. 8000.00 crores (Previous Year 800,00,00,000 Equity Shares ofRs. 10/-each)

Rs. 8904.1 Scroti

Note: During the year 2009-10, the equity shares have been split from Rs. 1000/- per share to Rs. 10/- per share. The paid-up equity capital as on 31.03.2010 wasRs.6316.36crores,out of whichRs.6316.36 issued in favour ofthe Government of India (Gol), including Rs. 256.93 crores worth of Equity Shares issued towards value of land acquired.

Pursuant to disinvestment of 10% of total equity shares held by Govt, of India, to the public, the shares of Coal India Ltd. has been listed in major Stock Exchange viz. BSE and NSE with effect from 4th November 2010.

Total investment by the Government of India in CIL and its subsidiaries as on 31.03.2011 was Rs. 5684.73 crores as against Rs. 6316.36 crores in the previous year as detailed below:-

Figures in Rs. Crores

As on 31.03.2011 As on 31.03.2010

Share Capital-Equity

Investment by Gol 5684.73 6316.36

Other Investors 631.63 -

Total 6316.36 6316.36

11. BORROWINGS

Aggregate borrowings of CIL, excluding bank borrowings ofRs. 32.60 Cr. (Rs. 463.17 Cr.) has reduced to Rs. 1520.96 Cr. in 2010-11 from Rs.1623.68 Cr in 2009-10 as detailed below:

Figures in Rs. Crores

Particulars As on 31.03.2011 As on 31.03.2010

Foreign Loans including deferred credits

IBRD/JBIC 1370.42 1464.30

EDC Canada 141.56 146.55

CME China - 3.74

Liebherr France SA., France 8.98 9.09

TOTAL 1520.96 1623.68

Decrease in outstanding was mainly because of repayment of principal and reduction in equivalent foreign currency of outstanding loan over previous year. The debt servicing had been duly met.

12. FOREIGN COLLABORATION

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 of coal reserve.

- Exploration and exploitation of Coal Bed Methane, UG Coal Gasification etc.

- Locating overseas countries interested in Joint Venture in the field of coal mining with special thrust on coking coal mining.

- 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 USA, Canada, UK, Russia, Germany, France, Poland, Belarus, South Africa, Mozambique, Iran, Turkey, China, Japan, Australia etc. to identify the areas of mutual cooperation for India in general and Coal India Limited in particular.

The important areas identified include modern technologies for mass production in both UG and OC mining, dealing with fire and subsidence, mine safety, coal preparation, extraction of Coal Bed Methane, UG Coal Gasification, application of Geographical Information System, Satellite Surveillance, Environmental Control, overseas ventures in coal mining.

While CIL would endeavor 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, albeit in varied measures. Followings are the details of activities took place with different countries during 2010-11:

Indo-US Collaboration:

The meeting of the Indo-US Coal Working Group (CWG) was held on 1 st April 2008. The following R&D project proposals, developed by CWG, had been finalized for CIL.

- Cost-effective Technology for Beneficiation and Recovery of fine coal

- Beneficiation Technology for Low Volatile Coking Coal

- Development of a Coal Preparation Plant Simulator.

The new areas identified by the CWG for possible cooperation were as follows:

- Underground Coal Gasification,

- Dry Coal Beneficiation,

- CBM/CMM/AMM.

- Coal Resource Characterization,

- Study for developing a model to increase usable quantum of energy from indigenously mined coal,

- Study on revival of selected abandoned mines in CIL companies.

The 8th Indo-US coal working group was held on 24/3/2011 at New Delhi. Ongoing CWG activities and project proposal for funding under Indo-US CWG was presented by Chairman CIL. Deliberations were held for enhancing technical capability of professionals from CMPDI in the area of Geospatial Technology for effective mine land reclamation and Sustainable Development of coal resources in India.

Indo-German Collaboration:

17th meeting of the Indo-German Working Group on Coal was held in Kolkata on 07.11.2008. The areas identified to strengthen the working group cooperation efforts are as under:

- Developing technology, essential for deep shaft sinking for extraction of deep seated coal,

- Technology for Hard Roof Management in coal mines,

- Establishing techniques to assess and extract CBM & CMM,

- Underground Coal Gasification (UCG) for coal resources at greater depth/isolated deposits,

- 3D Seismic Survey with Borehole Imaging System,

- Ventilation Air Methane - mitigation and utilization of Indian Mining scenario,

- In Seam Seismic Survey for underground coal mining operation,

- Joint Venture for mining abroad with technological cooperation from Germany,

- Cooperation in capacity building specially in UG mines.

Indo-German Coal Industry Interface meeting was held on 9th November 2010 at Kolkata where delegates from CIL and German side presented the scope towards industrial and scientific cooperation.

Indo-Belarus Collaboration:

The 4th meeting of the Indo-Belarus Inter Governmental Commission for Economic,Trade, Industrial, Scientific,Technical and Cultural Co-operation was held in New Delhi on 17th & 18th November, 2008. Both the sides negotiated and discussed the issues of cooperation on the basis of mutual and equal interest.

Further, a meeting was held between MOS (l/C) Coal and First Deputy Prime Minister of Republic of Belarus on 25/10/2010 where Chairman, Coal India Limited was also present. It was suggested that, for HEMM, Belarus should develop suitable after sale service mechanism including provision for training of HEMM operators through simulators as the contracts will be for a period of 12 years including maintenance and repair contracts of equipment.

Honourable Minister (l/C), Coal and senior officials from the

ministry were invited to visit Belarus to have on site inspection of their equipment manufacturing facilities in Belarus.

Indo-Australia Collaboration:

The 6th meeting of the India-Australia JWG on Energy and Minerals was held in New Delhi on 16-17th March, 2009.The working group discussed on recent trade and investment developments, implications of the global financial crisis on the resources and energy sectors, recent energy and mineral policy developments.

The Joint Working Group also agreed to activities in 2009-11 under the five Actions Plans signed between Australia and India in November, 2008 viz Mining and Minerals, Coal, New and Renewable Energy, Power, Petroleum and Natural Gas. The workshops hosted by concerned ministries on 16.03.2009 also produced constructive dialogues around the key themes of Joint Action Plan, signed between MOC and Department of Resource Energy & Tourism, Govt of Australia on 05.11.2008.

A Joint Sub-Group/Task Force with Joint Secretary, MOC, as Chairperson was constituted by MOC for developing bilateral opportunities and continuity of all key areas enumerated in Joint Action Plan signed in November 2008.

The meeting of the Task Force under India-Australia Joint Working Group and Energy and Minerals Forum was held in Australia from 7th to 10th June 2010.

The 7th Indo-Australia Joint working group meeting on Energy & Minerals was held from 17th to 18th May, 2011 at Sydney, Australia.

Indo-Mozambique Collaboration:

MOU for co-operation in the area of coal mining exists between Govt, of India and Govt, of Mozambique. Till date two meetings of Indo-Mozambique Joint Working Group on Coal have been held, one in Mozambique and the 2nd in New Delhi.

CIL leveraged the bi-lateral platform of Indo-Mozambique JWG on coal to acquire prospecting license (PL) of two coal blocks

in Mozambique, namely A1 and A2, covering an area of 22400 hectares. It emerged as the successful bidder in the global tender process run by Govt, of Mozambique based on its proven core competence over the entire gamut of coal business value chain. The licenses will allow CIL to explore and develop the coal blocks over a period of 5 years. A 100% wholly owned subsidiary of CIL namely, Coal India Africana Limitada (CIAL), has been registered in August 2009 in Mozambique for investment in coal resources.

CIL intends to start drilling and exploration activities in the leasehold area of the aforesaid coal blocks for which a tender was floated in the month of February, 2011 to undertake prospect in these coal blocks. Bids from the interested bidders have been received and the same are under evaluation. Meanwhile initiatives have also been taken to operationalize CIAL to oversee exploration and development of the coal blocks already under possession and to venture into further acquisition initiatives in Mozambique.

Asia Pacific Partnership:

Seven countries namely Australia, China, India, Japan,The Republic of Korea, USA and Canada of the Asia Pacific Partnership on Clean Development and Climate have decided to cooperate in the increased energy needs and associated challenges, including those related to air pollution, energy security and greenhouse gas intensities. The partnership has established eight task forces in key sectors.

- 6th meeting of CMTF was held from 10-12th March, 2010 at Pokolbin, Hunter Valley, Australia. In the aforesaid meeting Indian side made a brief presentation on the status of implementation of various on-going projects and also highlighted other issue or problem in respect of on-going projects.

- CMTF meeting held on 14-16th September 2010 at Whistler, Canada was the last meeting of CMTF. The PIL decided to phase out CMTF at Bonn, Germany. In the meeting, it was agreed to transfer some of the existing projects which are to be completed through other existing bilateral fora. It was noted that all ongoing projects could be covered by the proposed changeover.

13. WORLD BANK FINANCED PROJECTS FOR 2010-11

The net utilization of loan disbursed by IBRD and JBIC was 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 drawal of loan since January 2004.

With the repayment of loan of USD 104.25 million to IBRD and JPY 15097.35 million to JBIC till 2010-11, the total CSRP loan as on31st March, 2011 stands at USD 141.48 million (equivalent to Rs. 638.67 crore) on account of IBRD and JPY 13343.47 million (equivalent to Rs. 731.75 crore) on account of JBIC.

Thus, a total amount ofRs. 1370.43 crore is lying outstanding under CSRP Loan as on 31st March 2011.

COAL VIDESH DIVISION, CIL

1. A. Status on EOI - Initiative for selection of Strategic partner (s)

1.1 Coal India Limited (CIL) is pursuing its foreign venture initiatives to acquire coal mines/blocks abroad, develop and produce from such mines in order to import the coal produced to India with the strategic initiatives of securing energy security of the nation.

1.1. A global Expression of Interest (EOI) was floated by CIL to select Strategic Partner(s) in preferred destination countries l


Mar 31, 2009

On behalf of the Board of Directors, I have great pleasure in presenting to you, the Thirty-sixth Annual Report of Coal India Limited and Audited Accounts for the year ended 31st March, 2009 together with the reports of the Statutory Auditors and the Comptroller and Auditor General of India thereon.

During the year the company continued to have eight fully owned 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).

The mines in Assam i.e. North Eastern Coalfields continue to be managed directly by Coal India Limited. Similarly, Dankuni Coal Complex also continues to be on lease with South Eastern Coalfields Limited during the year under review.

The year gone by has been one of the most challenging yet rewarding for Coal India Ltd. The steady performance of Coal India Limited over the years since inception and its contribution to the Countrys growth and creation of National Wealth was amply recognized when the company was conferred with the "Navratna Status" in October 2008.

The performance of the company both in terms of physical as well as basic financial parameters have improved this fiscal over the previous year despite the unprecedented global economic melt down. In fact the year has been an year of consolidation and accelerated growth for Coal India Limited. The coal production for the year was 403.73 million tonnes against 379.46 million tonnes thereby registering a growth of 6.4% which was much higher than average 5.4% since beginning of X tn plan period till 2007-08. The offtake grew by 6.96% to 401.46 mill tonnes as against 375.33 million tonnes in the previous year. The gross turn over at Rs.45796.59 crores against Rs.38865.70 crores in previous year accounted for a growth of 17.80% even though coal prices were not revised during the year.

The sharp increase in input cost during the year was due to the pay revision for both Wage Board employees and Executives accounting for 52.98%> of the total cost of production. Coal India Limited finalized the National Coal Wage Agreement (NCWA-VIII) in January, 2009 giving a 24% incremental benefit, the highest agreed so far. This not only helped avert a major strike call by the workers union which would have certainly plunged the company into loss of production thereby affecting power generation and GDP growth already at a critical stage because of global economic melt down but also helped to lift the motivation for the employees which resulted in better industrial environment of the industry. The executive pay revision has also come into effect in line with the recommendations of the DPE, with a major financial impact on the bottom line of the company. These cost increase have not yet been neutralized through price adjustment. The increase in pay and wage revision by a staggering Rs.8348.70 crores had the effect of bringing down the pre-tax profit from Rs.14092.80 crores to Rs.5744.10 crores.

As already mentioned the conferment of Navratna status to Coal India Limited has opened up new vistas as well as responsibilities and challenges for future. Now the Board of Coal India Limited is empowered to sanction all projects on its own, which will fasten the implementation of pending projects and thereby contributing energy security of the country in a more effective manner. Consequently CIL has taken up the challenge on itself to enhance the coal production to 435 million tonnes by 2009-10 i.e. a growth of 7.7%.

The global meltdown and its impact on Coal India:

- The recent global meltdown and the economic recession has not affected CIL in a major way since demand for coal from power producers and from other coal consuming industries continues to be high. This was mainly due to the countrys accelerated programme of addition to power generation capacity being largely on course.

- On the contrary CIL is helping to mitigate affects of economic meltdown in India to some extent. By offering coal at a deep discount to international prices even, in the face of global economic meltdown, the company plays an extremely important strategic role in making the end user industry globally competitive.

- Some of the highlight of performance of the company are touched upon in the following paragraphs to illustrate the companys all round performance during the year:-

Environment management by CIL- Satellite Surveillance measures

- Coal India Limited during the year 2008-09 has introduced a Satellite Surveillance System for monitoring of land reclamation and afforestation of its major opencast mines. Starting with 35 large major opencast mines in phase-I the coverage will be extended in phases to all opencast mines. Consequently reports based on satellite data is being uploaded in the websites of CIL, CMPDIL and concerned coal companies. This is expected to bring substantial transparency in CILs environmental management efforts.

- Coal India has already planted about 7 crores plants with a survival rate of over 85%. Thirty open cast mines of Coal India are in possession of ISO 14001 certification.

- The year 2009-10 has been declared as the year of "Environment Management" at CIL.

Welfare measures/ corporate social responsibility measures

- As a measure of responsibility for providing employee welfare, CIL has introduced a scheme for meeting the cost of education including hostel charges for children of workmen in select engineering colleges and Govt. Medical Colleges.

- Action has been initiated for setting up of mobile dispensaries and wellness clinic on a large scale. Similar proposal has also been initiated to introduce Telemedicine facilities in central hospitals and extend such facilities to the people residing in an around the coal mining areas.

- The company has for the benefit of the society at large undertaken activities viz.

i) adoption of villages / providing basic amenities such as clean water /sanitation/ roads etc.; ii) setting up of CSR dispensaries in all the subsidiary companies; iii) providing medical facilities to the villagers at their doorsteps in remote places using Mobile Medical vans; iv) organizing health awareness programmes amongst others.

Venture abroad

During the year CIL successfully bagged two virgin coal blocks covering around 224 square kilometers viz. Al and A2 blocks in coal bearing TETE province of Mozambique through competitive bidding process run by Govt, of Mozambique. The blocks will be taken up for exploration and development shortly after completion of necessary formalities. The coal which will be subsequently mined from these blocks will be imported to India to substantially augment the coal availability in the country

Transparency initiatives

As a part of clean and transparent measure of corporate governance as well as enhancing the speed of decision making CIL has sealed a pact with MSTC Limited to act as a independent service provider for CILs e-tendering and reverse auction services.

Fuel Supply Agreement

As a measure of ushering in an era of consumer-friendly commercial practices in coal marketing, Fuel Supply Agreements have been entered into with all major consumers.

R&R Policy

The modified rehabilitation and resettlement (R&R) policy of CIL adopted in March 2008 is more project affected people (PAP) friendly. CIL is pursuing an inclusive model of growth by ensuing that PAPs are included in the decision making process underlining the need for wider contribution in R&R policies of communities affected due to mining. The aim is to pursue best practices of Corporate Social Responsibility (CSR) around the coal mining areas and improved the quality of life with community consensus and active participation of people involved.

Other long term virgin initiatives

As a strategic expansion programme, CIL has undertaken activities for developing seven large underground mines, re-opening eighteen abandoned mines, developing 18 coal beneficiation plants (for providing washed coal to all non-pithead consumers) on Build Operate and Maintain basis.

2.0 FINANCIAL PERFORMANCE

2.1 Financial Results

A. The pre-tax profit of CIL and its subsidiary companies during the year 2008-09 is Rs. 5744.10 crores after taking into account the impact of pay revision for workmen w.e.f 01.07.2006 and executives from 01.01.2007. Financial impact of revision of wages of wage board employees and that of executives are Rs. 10104.78 crores, out of which liability provided in the Accounts of 2007-08 was Rs. 1756.08 crores and the balance of Rs. 8348.70 crores has been provided in 2008-09. Out of the aforementioned financial impact of Rs.8348.70 crores, Rs. 3129.26 crores relates to actuarial liability for increased salary and increased ceiling of gratuity from Rs.3.50 lacs to Rs. 10.00 lakhs. On a like-to-like comparison between 2007-08 and 2008-09 without the provision of pay revision of wage board employees and executives, growth in profit before tax is 34.29% over last year. Company-wise position of profit before tax without considering the impact of pay revision is stated below:-

Company 2008-09 2007-08

Profit (+) / Loss (-) Profit (+) / Loss (-)

ECL (-) 255.98 (-) 638.72

BCCL (+) 208.35 (+) 431.40

CCL (+) (+) 1282.31

1759.25

NCL (+) 3619.50 (+) 2826.99

WCL (+) 1787.55 (+) 1207.38

SECL (+) 3356.62 (+) 2393.89

MCL (+) 2945.78 (+) 2578.98

CMPDIL (+) 127.19 (+) 26.50

CIL/NEC (+) 3791.28 (+) 2666.69

Sub-Total (+) 17339.54 (+) 12775.42

Less : Dividend from Subsidiries (-) 3329.74 (-) 2378.27

Total (+) 14009.80 (+) 10397.15

(+) (+) (+) (+) 8674.30

8674.30

Adjustment for

deferred (+) 83.00 (+) 97.38 Revenue income

Overall Profit as per Consolidation of (+) 14092.80 (+) (+) 10494.53 (+)

Accounts (+) 8674.30 (+) 8674.30

B. Nevertheless, after considering the impact of pay revision retrospectively, CIL and its subsidiaries have achieved an aggregate pre-tax profit of Rs. 5744.10 crores in the year 2008-09 against a pre-tax profit of Rs 8738.46 crores in the year 2007-08. The financial impact of pay revision accounted for being Rs.8348.70 crores in 2008-09 as against Rs. 1756.08 crores in 2007-08.

Company-wise position with regard to profit(+) earned or loss (-) incurred during the year under review vis-a-vis in 2007-08 are given in the table appended below:-

Figures in crores

Company 2008-09 2007-08

Profit (+) / Loss (-) Profit (+) / Loss (-)

ECL (-) 2105.70 (-) 1026.66

BCCL (-) 1376.99 (+) 97.05

CCL (+) (+) 1035.25

763.80

NCL (+) 3131.01 (+) 2763.75

WCL (+) 516.12 (+) 930.22

SECL (+) 1817.93 (+) 2067.37

MCL (+) 2580.25 (+) 2504.79

CMPDIL (+) 6.74 (+) 5.00

CIL/NEC (+) 3657.68 (+) 2642.58

Sub-Total (+) 8990.84 (+) 11019.35

Less : Dividend from

Subsidiries (-) 3329.74 (-) 2378.27

Total (+) 5661.10 (+) 8641.08

(+) (+) (+) (+) 8674.30

8674.30

Adjustment for deferred Revenue income (*) (+) 83.00 (+) 97.38

Overall Profit as per Consolidation of Accounts (+) 5744.10 (+) 8738.46 (+)

(+) (+)8674.30 <+) 8674.30

(*) Recognition of revenue in respect of interest claim and apex charges attributable to BCCL in years account have been deferred by CIL in consistence with the provision of AS-9 of ICAI of Revenue Recognition.

Highlights of performance

The highlights of performance of Coal India Limited including its Subsidiaries in the year 2008-09 compared to previous two years are shown in the table below:

2008-09 2007-08 2006-07

Production (in million tonnes) 403.731 379.461 360.91

Off-take of Coal (in million tonnes) 401.46 375.33 351.14

Sales (Gross) (Rs./Crores) 45796.59 38865.70 35129.16

Gross Profit (Rs./Crores) 5900.60 8888.39 8687.38

Capital Employed (Rs/Crores) 16963.98 17108.20 16223.74

Net Worth (Rs./Crores) 19165.04 19342.36 17889.30

Profit before Tax (Rs./Crores) 5744.10 8738.46 8602.46

Profit after Tax (Rs/Crores) 2078.69 5243.27 5708.73

Gross Profit to Capital employed 34.66% 51.95% 53.55%

Profit before Tax to Net Worth 29.97% 45.18% 48.09%

Coal Stock (Net) ( in terms of No. 0.78 0.88 0.88 of months Net Sales)

Sundry Debtors (Net) ( in terms of 0.47 0.45 0.50 No. of months Gross Sales)

The above financial position has been prepared as per the Consolidated Accounts (Accounting Standard (AS-21). Since, non-recognition of interest, etc. in Holding Companys Accounts, from one of its subsidiaries (as per Accounting Stadard-9) has been ignored in such consolidation (to comply with provisions of AS-21), the profit as well as related corresponding figures shown above may be read with such deviation.

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. 3329.74 crores as against dividend of Rs. 2378.27 crores in previous year, the Subsidiary-wise break-up of which are as under:

Name of the Subsidiary Rs. in crores

CCL 250.23

(244.40)

NCL 1063.00

(776.59) WCL 259.34

(296.00)

SECL 757.17

(510.78)

MCL 1000.00

(550.50)

TOTAL 3329.74

(2378.27)

Figures in brackets are for previous year.

Your Directors recommended dividend payment of Rs. 1705.42 crores @ Rs. 270/- per share on 63163644 Equity Shares of Rs. 1000/- each fully paid valued at Rs. 6316.36 crores and payment of tax as applicable thereon.

36. Acknowledgement:

The Board of Directors of your Company wishes to record their deep sense of appreciation for the sincere efforts put in by the employees of the company and the Trade Unions. Your Directors also gratefully acknowledges the co-operation, support and guidance extended to the company by the various Ministries of the Government of India in general and Ministry of Coal in particular, besides the State Governments. Your Directors also acknowledges with thanks the assistance and guidance rendered by the Auditors, the Comptroller and Auditor General of India and the Registrar of Companies, West Bengal and wishes to place on record their sincere thanks to the Consumers for their patronage.

For and on behalf of the Board of Directors

Sd/- Partha S. Bhattacharyya Chairman

Kolkata, the dated 27th July, 2009.


Mar 31, 2008

On behalf of the Board of Directors, I have great pleasure in presenting to you, the Thirty-fifth Annual Report of Coal India Limited and Audited Accounts for the year ended 31st March, 2008 together with the reports of the Statutory Auditors and the Comptroller and Auditor General of India thereon.

During the year the Company continued to have eight fully owned 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).

The mines in Assam i.e. North Eastern Coalfields continue to be managed directly by Coal India Limited. Similarly, Dankuni Coal Complex also continues to be on lease with South Eastern Coalfields Ltd. during the year under review.

Highlights of performance

The highlights of performance of Coal India Limited including its Subsidiaries in the year 2007-08 compared to previous two years are shown in the table below:

2007-08 2006-07 2005-06

Production (in million tonnes) 379.46 360.91 343.39

Off-take of Coal (in million tonnes)375.33 351.14 333.66

Sales (Gross) (Rs./Crores) 38865.70 35129.16 33,997.19

Gross Profit (Rs./Crores) 8888.39 8687.38 8879.38

Capital Employed (Rs/Crores) 17108.21 16223.74 12741.00

Net Worth (Rs./Crores) 19342.37 17889.30 14114.82

Profit before Tax (Rs./Crores) 8738.46 8602.46 8788.48

Profit after Tax (Rs/Crores) 5243.27 5708.73 5891.52

Gross Profit to Capital employed 51.95% 53.55% 69.69%

Profit before Tax to Net Worth 45.18% 48.09% 62.26%

Coal Stock (Net) ( in terms of No. 0.88 0.88 0.79 of months Net Sales)

Sundry Debtors (Net) ( in terms of 0.45 1.05 0.60 No. of months Gross Sales)

(The above financial position has been prepared as per the Consolidated Accounts (Accounting Standard (AS)-21). Since, non-recognition of interest etc. in Holding Companys Accounts, from one of its subsidiaries (as per Accounting Stadard-9) has been ignored in such consolidation (to comply with provisions of AS-21), the profit as well as related corresponding figures shown above may be read with such deviation.)

20. Research and Development Projects.

20.1 R&D Projects under S&T Grant of Ministry of Coal

The R&D activities 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 of CIL, CMDs of CMPDI, SCCL and NLC, Director of concerned CSIR laboratories, representatives of Department of S&T, Planning Commission and educational institutions, among others. The main functions of SSRC are to plan, programme, budget and oversee the implementations of research projects and seek application of the findings of the R&D work done.

The SSRC is being assisted by a Technical sub-committees headed by CMD, CMPDI. The committee deals with research proposals related to coal exploration, mining, mine safety, coal beneficiation & utilization 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, monitoring the progress of implementation of the projects, preparation of budget estimates, disbursement of funds etc.

20.2 Physical performance

During the X Plan Period, a total of 51 projects were completed by various agencies.

The status of Coal S&T Projects in the XI Plan period is as under:

i) Projects on-going as on 1.4.2007 - 36

ii) Projects sanctioned by GOI during 2007-08 - 09

iii) Projects completed during 2007-08 - 10

iv) Project terminated during 2007-08 - 01

iv) Projects on-going as on 1.4.2008 - 34

Following Coal S&T projects were completed during 2007-08:

i) Optimisation of pillar parameters for development and final extraction of highly inclined seams at SCCL mines.

ii) Development of support guidelines for depillaring panels in Indian coal mines.

iii) Effect of production blasts on ground water and geo technical properties on pit-wall and dump stability in open pit coal mines.

iv) A study on effect of underground blasting on surface structures vis-a-vis standardization of blast vibration damage threshold.

v) Model studies on the efficiency of gravity blind back filling method and evaluation of a pre-jamming indication parameters.

vi) Development of process/technique for potential utilization of less matured non-coking coal for making hard coke by utilizing stamp charging.

vii) Development of a process for the production of activated carbon from Neyveli Lignite.

viii) Development of cost effective high performance highway using fly ash composite.

ix) Studies on the impact of atmospheric biotic/abiotic particulates on the environment of Jharia Coalfield and their abatement strategies.

x) Studies on the use of Bottom slag in corp production.

20.3 Financial Status

Budget provisions vis-a-vis actual fund disbursement during the period are given below:

Rs. in Crores)

2006-07 2007-08

RE Actual RE Actual 6.00 8.09 12.86 12.48

20.4 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 co-ordination of research activities funded by CIL R&D Board. So far, 34 projects have been taken up under the funds of CIL R&D Board, out of which 22 projects have been completed.

The status of CIL R&D Board Projects during 2007-08 was as follows:

i) Projects on-going as on 1.4.2007 - 15

ii) Projects Sanctioned during 2007-08 - Nil

iii) Projects completed during 2007-08 - 03

iv) Projects on-going as on 1.4.2008 - 12

The disbursement of fund for R&D jobs during the year 2007-08 was Rs. 11.08 crores.

21. Telecommunication System

Continued efforts in updating the communication networks and implementation of various IT solutions are being made by CIL and Subsidiary Companies to excel in productivity, sales and marketing, management of operation, utilization of human resources and achieve optimum efficiency in the backdrop of rapidly changing events of the industry. The following actions have been undertaken by Telecom Division.

i) Provisioning of High Speed Internet over LAN at CIL(HQ) & CIL(Mkt.)

has already been made and up gradation of LAN is under completion stage. A centralized mail and messaging system along with proper Network security is also expected to be commissioned soon.

ii) In order to enhance the operational efficiency of large opencast mines of the different subsidiaries a GPS based Operator Independent Trunk Despatch System (OITDS) is going to be implemented with high speed data and voice connectivity along with GUI display. The scrutiny of the offers has been carried out and the same is under approval stage.

iii) The Order has been placed for installation of state-of-the-art IP based EPABX with support of convergent technology (using voice and data through same backbone) as a replacement of old Hotline exchange at Coal Bhawan and 15, Part Street office. The system is expected to be instiled and commissioned shortly. Subsequently it will be extended to Subsidiary Companies and Areas for convergent Voice, Video and Data application.

iv) M/s. Deloitte has been appointed as a Consultant for formation of IT policy and drawing up the scheme for a converged IT Network from Project/Mine up to CIL level with connectivity of public portal. After getting information from different subsidiary Companies, communication scheme will be drawn for extending vice facilities and data connectivity in an integrated manner from Project, Mine, Regional stores, Workshops etc. to Area office, Subsidiary(HQ), CIL(HQ) and Ministry of Coal.

v) Action has been taken for Hosting of CIL corporate web Portal to substantially augment its image building endeavor and to bring it to a level commensurate with size and strategic importance of CIL, emphasizing its role in energy security of the nation. The web portal is also envisaged to conduct different business application in line with other Navaratna PSUs and will be connected with CIL intranet.

22 Mines safety

22.1 Trend of fatal accidents & fatalities

CIL has achieved best ever safety performance in the year 2007 both in terms of numbers of reducing fatalities and fatality rate since its inception. CIL has also obtained excellent grade on MOU rating on safety as it has able to reduce Fatality Rate/MT of coal production (Safety Indicator as per MOU) to 0.15 against target 0.22 and corresponding figure of last year was 0.30 due to continuous and sustained efforts on safety front. There

was no major fatal accident occurred in the year 2007. However, number of fatal accidents has slightly increased compared to 2006. The trend in fatal accidents in last five years in CIL are in declining mode. The trend of fatal accident in last 5 years in CIL is in declining mode. The trend of fatal accident in the last five years in CIL is given in Graph below:

Graph

22.2 Safety Statistics

A. Overall accident Statistics for CIL in 2007 compared to 2006 are given below:

Table -A

SI. No. Parameter Year Year 2007 2006

1 Numbers of fatal accidents 55 51

2 Numbers of fatalities 57 106

3 Numbers of serious accidents 326 317

4 Numbers of serious injuries 340 336

5 Fatality rate per m.te. of coal production 0.15 0.30

6 Fatality rate per 3 lakhs manshift deployed 0.18 0.32

7 Serious injury rate per m.te. of coal production 0.92 0.96

8 Serious injury rate per 3 lakhs manshift deployed 1.05 1.02

Note: 1. Accident Statistics are maintained calendar year-wise in conformity with DGMS practice 2. All figures for 2007 and figures for serious accident & serious injuries in 2006 are subject to reconciliation with DGMS.

B. Company-wise break-up of Accidents:

The Company-wise fatal accidents, fatalities, serious accidents and serious injuries in 2007 compared to 2006 are also given below:

Table-B

Company Fatal Accidents & Fatalities Accidents Fatalities

2007 2006 2007 2006

ECL 7 8 8 13

BCCL 10 12 10 61

CCL 7 5 8 5

NCL 5 4 5 5

WCL 12 13 12 13

SECL 10 7 10 7

MCL 4 2 4 2

NEC 0 0 0 0

CIL 55 51 57 106



Company Serious Accidents & Injuries Accidents Serious Injuries

2007 2006 2007 2006

ECL 105 102 115 105

BCCL 66 45 66 47

CCL 16 19 16 19

NCL 10 15 10 15

WCL 60 57 61 60

SECL 60 68 63 72

MCL 9 10 9 17

NEC 0 1 0 1

CIL 326 317 340 336

Note: All figures for the year 2007and figures for serious accident & serious injuries in the year 2006 are subject to reconciliation with DGMS.

C. Company-wise Break-up of Fatality & Serious Injuries Rate:

The Company-wise Fatality & Serious Injury Rate in 2007 compared to 2006 are also give below:

Table-C

Company FATALITY RATES

Per M. Te. Per 3 lakh Manshifts 2007 2006 2007 2006

ECL 0.32 0.41 0.11 0.17

BCCL 0.42 2.52 0.19 1.11

CCL 0.19 0.13 0.20 0.12

NCL 0.09 0.10 0.36 0.36

WCL 0.28 0.30 0.21 0.22

SECL 0.11 0.08 0.15 0.11

MCL 0.05 0.03 0.28 0.14

NEC 0.00 0.00 0.00 0.00

CIL 0.15 0.30 0.18 0.32



Company SERIOUS INJURY RATES

Per M Te. Per 3 lakh Manshifts 2007 2006 2007 2006

ECL 4.63 3.32 1.54 1.37

BCCL 2.77 1.94 1.25 0.85

CCL 0.37 0.51 0.40 0.44

NCL 0.18 0.29 0.72 1.07

WCL 1.40 1.38 1.05 1.04 SECL 0.68 0.84 0.95 1.10

MCL 0.11 0.22 0.63 1.19

NEC 0.00 0.81 0.00 0.36

CIL 0.92 0.96 1.05 1.02

Note: All figures for the year 2007 and figures for serious accident & serious injuries in the year 2006 are subject to reconciliation with DGMS

22.3 Activities for further improvement in Safety in mines undertaken in 2007.

For further enhancement of safety standard in its mining operations, CIL has pursued several measures in the year 2007 along with others on-going safety related activities/initiatives apart from compliance of statutory requirements for safety which are given below:

Disaster Prevention

The primary thrust of the Safety Strategy of CIL has been towards averting accidents with a large number of casualties (accidents involving more than 10 fatalities are termed disasters in Indian mining parlance). Towards this end, the following activities were taken:

Thrust on measures for prevention of inundation:

• Regular Check Surveys.

• Before monsoon details Action Plan for preventive measures against inundation were prepared, implemented and monitored.

• Trial of Geo-physical Methods for Detection of waterlogged bodies/proving partings.

• Use of modern Survey Instrument like Total Station etc.

• Digitization of Mine Plan for enhancing accuracy.

Explosion & Fire

• Computerized Environmental Tele-monitoring Systems (ETMS) for getting advance warning on build up of excessive inflammable gases in mine environment that could lead to outbreak of fire or explosion were installed in some identified highly gassy or fiery mines.

• Modern Hand-held /Portable Digital Multi-gas Detectors were provided in mines for monitoring mine environment for early detection of heating/accumulation of inflammable/noxious gases.

• Introduction of Gas Chromatograph for getting better accuracy in analyzing mine air samples.

• Initiative has been taken to develop Carbon Nano-Technology (CNT) based personal gas detector device along with audio-alarm in collaboration with Jadavpur University.

• Stress was given on retraining of supervisory staffs on operation of Flame Safety Lamp (FSL) and other digital apparatus being extensively used.

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 was continued.

Main thrust areas are:

• Stress on underground mechanization so as to reduce the exposer of workers at the active faces.

• Mechanisation of Roof Drilling process for roof bolting purpose.

• Initiatives have been taken to develop device with appropriate audio-visual alarm to monitor the behaviour of overlying roof strata. One R&D project for development of indicators for monitoring impending load on roof has already initiated in collaboration with IIT-Kharagpur.

• Several roof-monitoring devices have been developed at Area/Mine level workshop and tried to use it in underground mines particularly in SECL.

• Creating awareness through extensive training of support personnel, dressers and supervisors.

In addition to this the following measures were also taken:

Risk Assessment & Safety Management Plan:

Risk Assessment has been completed in 427 mines and potential dangers associated in mining activities due to existing geo-mining conditions of the mine, method of mining being adopted for extraction of coal and from machineries being engaged for operations have been identified. Time-bound action programmes to eliminate or to reduce or to avoid the identified risks for each mine has been chalked out along with review mechanism. It is an on-going cyclical process.

Safety Audit:

Safety Audit of the mines are being conducted in more meaningful way in two phases:

a. 1st Phase: Deficiencies (i.e. unsafe conditions and unsafe acts) are being identified and remedial measures suggested or recommended.

b. 2nd Phase: Review the status of implementation of the recommendations/suggestions of 1st phase are being done in 2nd phase and thereafter final report is submitted.

S&R Division of CIL has conducted several co-ordination meeting at regular interval where Director (Tech.), CIL, Director (Tech)(Op)s and Chiefs of ISO of all subsidiaries participated to review the safety status of the mines and to adopt strategies for enhancing safety standard. Several initiatives were taken on the basis of the adopted resolutions of those meetings.

Thrust was given on further activating Pit Safety Committee at mine level and other Bi-partite & Tripartite Safety Committee at Area and subsidiary HQ level.

ISO Inspection

Inspections by the Internal Safety Organisation (ISO) officials were intensified. This has been resulted positive impact in safety management.

Thrust continued on Emergency preparedness through

• Preparation of Mine-specific Emergency Action Plans

• Demarcation of Escape Routes belowground as well as on plans.

• Conducting of Mock Rehearsals, monitoring failure points for further improvement.

• Initiative to introduce the Tracking system to locate the trapped miners in emergency by various technologies such as RFID

Initiative has been taken to procure training simulator for imparting training to operator/driver of tippers & dumpers.

23. Mines Rescue Services

A well equipped Rescue Service Organisations 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 Room-with- Refresher- Training facilities and 18 Rescue Rooms in CIL. Company-wise details regarding Mine Rescue services of CIL have been posted at CIL web-site.

24. HUMAN RESOURCE DEVELOPMENT

24.1 Overall performance

31912 employees were trained during 2007-08, out of which 8091 were executives, 9608 supervisors and 14213 workmen. The performance included in-house training efforts, external training efforts and training abroad. The training of supervisors and Workers under "Statutory obligations" were taken care of separately.

24.2 In-house training

The corporate HRD plan for 2007-08 was developed within the framework of the Strategic HRD plan, by integrating efforts of HRD in all the subsidiary companies and considering capabilities of twenty-six training Institutes situated at different locations in Coal India.

In order to formalize Strategic HRD plan, a comprehensive HRD training policy is being followed. The strategy arising out of HRD policy envisaged efforts in terms of inputs to technical training, management training, general development of workmen & supervisors and also transforming new employees for learning skills.

Total number of employees trained through in-house training efforts during 2007- 08 is given below :

Category Employees trained

Executives - 5874

Supervisor - 9279

Workmen* - 14059

Total - 29212

24.3 Training outside company

i) Within the Country.

In order to expose the employees in specialized fields to receive inter- organisational experience and also supplementing in-house training efforts, 2588 employees from eight subsidiary companies and CIL/HQ were trained under the various training programmes conducted outside Company. The break up of training efforts at different categories of employees is given below:

Category Employees trained

Executives - 2107

Supervisors - 327

Workmen - 154

Total: 2588

ii) Training abroad.

112 employees were trained abroad from April, 2007 to March, 2008, the details of which are given below:

Category Employees trained

Executives - 110

Supervisors - 2

Workmen - 0

Total 112

24.4 Additional Information on HRD in CIL during the year 2007-08

i) The new CIL Training Policy has been prepared.

ii) The Structure of training has been prepared.

iii) In all 11 (executives) from CIL and its Subsidiary companies have passed

the Certification of Project Managers Course conducted by the Project

Management Association, New Delhi. iv) Training Module of Newly recruited Management Trainees in CIL has

been prepared.

25. Manpower

25.1 The total manpower of the company including its subsidiaries as on 31.3.2008 is 426077 as against 439343 as on 31.3.2007. Company-wise position of manpower is as below :

Company As on Total

ECL 31.3.2008 94943

31.3.2007 98780

BCCL 31.3.2008 80051

31.3.2007 83578

CCL 31.3.2008 58808

31.3.2007 61610

WCL 31.3.2008 64160



Company As on Total

31.3.2007 65599

SECL 31.3.2008 82782

31.3.2007 84368

MCL 31.3.2008 20786

31.3.2007 20591

NCL 31.3.2008 16697

31.3.2007 16726

NEC 31.3.2008 3072

31.3.2007 3210

CMPDI 31.3.2008 3048

31.3.2007 3127

DCC 31.3.2008 641

31.3.2007 647

CIL(HQ) 31.3.2008 1089

31.3.2007 1107

CILasawhole 31.3.2008 426077 31.3.2007 439343

25.2 The presidential directives for Scheduled Castes/Scheduled Tribes/OBC have been implemented in all the subsidiaries/units of Coal India Limited. The representation of SC/ST employees in total manpower of CIL and its Subsidiary Companies as on 1.1.2008 and 1.1.2007 are given below :

As on Total manpower Scheduled Caste Scheduled Tribe Nos. Percentage Nos. Percentage

1.1.2008 429507 95231 22.17 53065 12.35

1.1.2007 443128 97977 22.11 54456 12.29

25.3 WAGE NEGOTIATIONS

The Joint Bipartite Committee for the Coal Industry was constituted on 21.5.2007 to negotiate National Coal Wages Agreement-VIII in accordance with the DPEs guidelines in terms of letter No. 55011-01-2006-PRIW dated 28th February, 2007 and letter No. 55011-1-2006-PRIW dated 14.5.2007 of Director, Govt, of India, Ministry of Coal, New Delhi. The last wage agreement i.e. NCWA-VII, was made for a period of 5 year i.e., from 1.7.2001 to 30.6.2006 with 100% neutralization of DA with the approval ofGOI.

The first meeting of JBCCI-VIII was held on 29th June07 at Kolkata and subsequently 3 more meetings have been held. Interim relief @ 15% of basic wages as on 30.6.2006 has been granted to the employees w.e.f. 1.7.2006.

26. Industrial Relations and Employees Participation in Management

Industrial Relation scenario in CIL and its subsidiaries during the financial year remained cordial. Joint Consultative Committees (JCCs) and different Bipartite Committees at Unit/Area levels and Subsidiary (Hqrs) levels continued to function normally. Meetings of Standardisation Committee and Apex JCC were held at regular intervals at CIL.

Strikes and Bundhs

Company-wise details of strikes, mandays lost and production lost and other incidents are furnished in the following table:

Company No. of strikes / No. of other Bundhs Incidents.

2006-07 2007-08 2006-07 2007-08

ECL 0+1 (IS) 0+2(BB) 13 83

BCCL 5+l(IS) 0+0(IS) 55 46

CCL 0+1 (IS) 0+0(IS) 43 48

WCL 0+1 (IS) 1+0(IS) 0 10

SECL 0+1 (IS) 1+0(IS) 0 1

NCL 1+1 (IS) 0+0(IS) 11 44

MCL 0+1 (IS) 0+0(IS) 9 25

NEC 0+1 (IS) 0+0(IS) 2 0

CMPDIL 0+l(IS) 0+0(IS) 0 0

CIL 0 0 0 0

Total 6+l(IS) 2+2(BB) 251 257



Company Mandays lost Production lost (in tonnes)

2006-07 2007-08 2006-07 2007-08

ECL 63251 1400 59000 500

BCCL 7846 0 8470 0

CCL 20527 0 81000 0

WCL 10001 18745 18293 83877

SECL 22512 3678 26595 11100

NCL 1998 0 0 0

MCL 0 0 0 0

NEC 894 0 65 0

CMPDIL 674 0 224.26 0 (Mtg.)

CIL 0 0 0 0

TOTAL 127703 23823 193423+ 95477 224.26 (Mtg)

* IS = Industrial Strike, BB = Bangla Bundh.

* Other incidents: Go-slow, Gherao/Assault/Demonstration/Obstruction for stoppage of work.

* Mtg = Metreage/Mts.-Meters

* l(one) Industrial Strike was called on 14.12.2006.

* Two Bangla Bundh were called by political party on 31.10.2007 & 12.11.07

27. Employees Welfare and Social Security Scheme

Coal India and its subsidiaries continue to give due attention for the welfare of its employees with a view to improve their quality of life. Some of the major achievements relating to welfare of employees of Coal India Limited are as follows:

a) Honble Minister of Coal declared on CIL Foundation Day a Scheme under which direct dependent of employees who died or were permanently disabled in a mine accident are to be paid an amount of Rs. 5 lakhs. This amount is in addition to the payment made under Workmens Compensation Act.

b) Coal India Limited has introduced a Scheme under which post retirement medical benefits have been provided to Executives on payment of a certain amount.

c) To further increase integration, it has been decided to celebrate 1st November of every year as CIL Foundation Day. The first CIL Foundation Day was observed on 1st November 2007 in CIL and all subsidiaries. Awards for Production, Productivity and Safety were presented to workers of all the subsidiary companies at a Central Function held at Kolkata. On this occasion, the CIL Corporate Geet was sung and CIL Flag unfurled all over the mines and areas of subsidiaries and at CIL(HQ).

d) Meritorious wards of CIL employees were awarded Merit and General Scholarship. Special Cash Award were presented to the wards of the employees of CIL(HQ) and Desk Offices of the subsidiaries for the first time who secured 90% or more in aggregate in 10th and 12th Standard Examination conducted by the Board.

e) Coal India continues to give special emphasis on promotion of sports and cultural activities for the employees and their wards. Events in different sports disciplines were organized by CIL and its subsidiary companies. Inter colliery and inter area Sports and Cultural Meets were also held in the Subsidiary Coal Companies.

f) An amount of Rs. 10 crores was approved for the opening of an Engineering College at Korba in Chhatishgarh as a part of Corporate Social Responsibility (CSR) activities.

Basic facilities like Housing, Water Supply, Medical Care etc. continued to be provided. Some Educational Institutions operating in and around coal companies were given assistance by way of grant-in-aid and infrastructure support as a part of Welfare and Community Development activities.

Table below shows the position of basic amenities provided:

SI. Item Available at the Additions Position No. time of during as on Nationalisation 2007-08 31.3.2008

I Housing

(a) Number of houses: 1,18,366 525 4,13,022

(b) Overall housing satisfaction 21.07% - 96.93%

2 Water supply (Population covered) 2,27,300 2,625 22,93,063

3 Educational Institutions:

a) No. of fully financed Project - - 61 schools (KV., DAV & other schools)

b) No. of Project schools given - - 26 infrastructure only

c) No. of Privately managed schools - - 290 provided recurring grant

d) Other educational Institutions - - 207 given grant/occasional help

Total: 287 - 584

4 Medical facilities:

a) Ambulances 42 - 667

b) Hospitals 49 - 85

c) Hospital beds 1,482 - 5,835

d) Dispensaries 197 - 424

Besides above, 12 Ayurvedic Dispensaries are also being run in the Subsidiary Coal Companies of CIL to provide indigenous system of treatment to workers and 15 beds are reserved in Ramkrishna Mission T.B. Sanatorium at Ranchi for the treatment of employees suffering from T.B.

28. Tree Plantation/Afforestation

In order to provide better environment, CIL and its Subsidiary Companies have planted 22.73 Lakhs of seedlings in the Coalfield Areas during the year 2007-08 under Afforestation programme.

29. 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 Govt, which is based on motivation and encouragement, the Coal India is speeding the pace of implementation among its employees. The top management gives high priority on it. The abstracts of the important works done toward this direction during the period from 1.4.2007 to 31.3.2008 are as follows:

The period under reference had witnessed a glittering function held on 10th July, 2007 at Bengal Chamber of Commerce & Industry Conference Room. All the eight companies of Coal India Limited situated in A.B.C region were awarded "Rajbhasha Samman" Purskar by Honble Chairman, Coal India Limited, Mr. Partha S Bhattacahryya for their best performance. The occasion was graced by all the Functional Directors of CIL. The Officers and employees working in Coal India Limited (HQ), Kolkata were awarded cash prizes for their best personal efforts in the field of implementation of Rajbhasha, Hindi in their Official work. This function brought sense of collective awareness towards Rajbhasha Hindi.

Another feather in the cap during the period under review is that Coal India bags "Rajbhsha Shield" award given by Town Official Language Implementation Committee (PSUs) Kolkata in the area of outstanding performance towards implementation of Rajbhasha Act, Rules & Regulations during its half yearly meeting held on 30th August, 2007atFlotel.

To augment the process of implementation of the provisions of the Official Languages Act & Rules and to increase the Hindi correspondence in the departments, regular meeting of Official Language Implementation Committee is being held under the Chairmanship of Director (P&IR), CIL. Chairman, CIL is also very much serious to attend the meetings. In such a meeting organized on 12.12.2007 in Coal Bhawan, Dr. Y. Lakshmi Prasad, Member, Hindi Salahkar Samiti, Ministry of Coal and Observer (Rajbhasha) for Coal India Ltd. was also present.

With a view to creat working atmosphere of Hindi in the official works, Hindi Fortnight starting from 14.9.2007 was celebrated in all offices of Coal India Ltd. During the Fortnight various Hindi competitions such as Hindi Noting - Drafting, Hindi Essay, Hindi Dictation, Hindi Translation, Hindi typing were organized among the employees of Coal India Ltd. A large number of officer and staff participated in the competition enthusiastically.

Hindi inspection of the offices is also a part of implementation programme. During the period under review, offices of 4 subsidiary companies were inspected by CGM(Rajbhasha) & Rajbhasha Department Officials. Apart from this, a high power parliamentary committee on Rajbhasha inspected NEC office situated at Margherita, Desk office ECL, Kolkata, Regional Sales Office, Ahmedabad and Mahanadi Coalfields Ltd., Sambalpur. In order to train the Officers & Staff of CIL in Official Language who have working knowledge of Hindi, three Hindi workshops were organized by he Department during the year under review where 37 persons were trained.

30. Vigilance.

30.1 Vigilance Set-up

Coal India Limited (CIL) is the holding company of 8 (eight) Subsidiary Companies spread over the State of Wet Bengal, Jharkhand, Orissa, Madhya Pradesh, Chattisgarh and Maharastra. Each subsidiary company is headed by Chairman-cum- Managing Director, assisted by Functional Directors. CIL acts as an Apex Body and holding company, which takes care of inter-company affairs and policy decisions across the subsidiary companies according to the Delegation of Powers vested with the holding company.

The anti-corruption activities in CIL and its subsidiary companies have been institutionalized by setting up Vigilance Department in the subsidiary companies each of which is headed by a Chief Vigilance Officer (CVO), appointed by the Govt, of India in

consultation with Central Vigilance Commission (CVC) on tenure basis, drawn from various government services.

CVO, CIL apart from monitoring vigilance activities of departments and offices under direct control of CIL and North Eastern Coalfields (NEC) also enquires into/monitors such cases referred by the CVC/MOC to CIL Vigilance. He also investigates specific complaints against officials of subsidiary coal companies specifically referred by Chairman, CIL to CIL Vigilance or on the basis of complaints or source information received directly at CIL Vigilance. Some co-ordination with the subsidiary coal companies is effected informally since CIL Vigilance Division has to liaise with institutions like CVC, MOC, CBI as also in view of the fact that CMD, CIL is the Appointing/Disciplinary/Appellate Authority in case of executive cadre employees and CVO, CIL is required to act as an advisor whenever CMD, CIL has to discharge his authority in one of the above mentioned capacity vis-a-vis a vigilance matter.

Any interface therefore, is maintained with the Vigilance Division of the different subsidiary companies and their CMDs. It may be mentioned that formal CVO, CIL does not exercise superintendence or control over the CVOs or the vigilance set up in the different subsidiary companies.

One of the major tasks is to report the vigilance status of different officials when required by CIL management or MOC or CVC or PESB. In so far as cases of promotion are concerned, the vigilance status of the concerned required officials is sent to Personnel Division of CIL after collecting the same from the vigilance wings of the different subsidiary companies. Similarly, in case of selection, the vigilance status in respect of the required employees is sent to the concerned authorities i.e. MOC/CVC after collecting the same from the different subsidiary companies. CIL Vigilance maintains the vigilance data in respect of only such employees who are/were posted in CIL or NEC.

30.2 Anti-corruption measures during the reporting year by CIL and Subsidiaries.

Total number of Intensive Examination of works/contracts undertaken/conducted was 79. In addition, Surprise Inspection at worksites were carried out by Subsidiary Vigilance units in 167 cases. Subsidiary-wise break-up of Intensive Examination and Surprise Inspection conducted are shown in the Table below:

(a) Subsidiary-wise numbers of surprise inspections and intensive examination during the year 2007-08.

Name of the ECL BCCL CCL WCL SECL NCL CMPDIL MCL CIL Total company (HQ)

Surprise 31 22 31 18 29 22 10 04 NIL 167 inspection_

Intensive 01 19 12 12 06 08 09 11 01 79 examinations

Based on complaints received from various corners and form source information, 258 investigation cases were completed during the reporting year. Total number of Departmental Inquiries disposed during the year was 70 and a number of officials against whom punitive actions were taken was 327 including 62 non-executives. In Coal India Limited (HQ) and its subsidiary, number of investigation cases completed and punitive actions initiated/penalty imposed are shown in the statement below:

(b) Number of investigation completed during the year 2007-08

Name of the ECL BCCL CCL WCL SECL NCL CMPDIL MCL CIL Total Company (HQ)

2007-08 (upto 40 27 26 14 16 87 04 21 23 258 Mar08)

(c ) Number of Departmental inquiries disposed and number of Officials imposed with penalties during the year.

(d) Sanction for prosecution during the year Grade M3 M2 M1 E5 E4 E3 E2 E1 TOTAL

Number 00 01 01 05 01 02 00 00 10

30.3 Special Achievement

Interactive Session between Central Vigilance Commission, Ministry of Coal and Coal India Limited:

CIL Vigilance arranged in inter-active session between Central Vigilance Commission, Ministry of Coal and Coal India Ltd. and its Subsidiary Companies in association with IICM, Ranchi on 19th and 20th July, 2007 at IICM, Ranchi which was attended by the officials of CVC, Officials of Ministry of Coal including Secretary, Ministry of Coal, CMDs of Subsidiary Companies of CIL, including Chairman, CIL and

all the Functional Directors of CIL, CVO, CIL, including all CVOs of Subsidiary Companies of CIL.

During the inter-active sessions various important issues as presented by the CMDs/Directors of CIL and Subsidiary Companies and all CVOs of the Subsidiary Companies, were discussed. Some of the important issues discussed/deliberated during the inter-active sessions were issues relating to disposal in composite disciplinary cases involving Minor and Major penalty, imposition of penalty of termination with retrospective effect, variation in different circulars/OM issued by he Commission relating to closure of complaint involving officers up to two level below the Board level, issues relating to current status of the contracts executed with ESM transporter, procurement policy of HEMM, in view of Supreme Court Judgment of allocating the supply order in the ratio of 60:40 between L-l and L-2 bidders vis-a-vis Purchase preference policy, issue relating to special dispensation from the CVCs guidelines to facilitate Coal Videsh to attain its objective expeditiously, complexities and delay in decision making involved in procurement of large size HEMM against Global tenders, issues relating to negotiation with L-l tender only, participation of CVOs in administrative decision making process, issues of reimbursement of service tax and dispute arising out of imposition of service tax where NIT does not provide for it, Trap cases-simultaneous trial and RDA, award of contract on nomination basis, issues relating to vigilance clearance, promotion and personnel policies in the WEB site, issues covering discount bidding system in respect of coal & sand transportation, bearing on transfer and posting of the executives whose names have been included in the Agreed List, CIL marketing related issues, capacity assessment of the two privately run /washeries at Gevra Project of SECL etc.

Record notes of the discussions/decisions at the inter-active session, as approved by CVC was communicated to all concerned by CIL Vigilance in November, 2007.

During the inter-active session, CVC was informed about the implementation of the Integrity Pact in the procurement being finalized at CIL.CIL Vigilance took active part in the process of fanalising he names of he Independent External Monitors which was approved by CVC.

During discussion, Chairman, CIL requested CVC to allow CVO, CIL to act in an advisory capacity on behalf of CVC. Secretary, MOC also reitered Chairman, CILs request for defining the role of CVO, CIL and his working relationship with CVOs of the Subsidiary Companies.

30.4 Vigilance Awareness Week

Vigilance Awareness Week was observed at Coal India Ltd(HQ) from 12th November to 16 November, 2007 as per the directives of the Central Vigilance Commission.

A circular dated 7/11/2007 requesting observance of Vigilance Awareness Week from 12th November, 2007 to 16th November, 2007 was issued by CVO, CIL addressed to

Chairman, Coal India Ltd, all Functional Directors of CIL and all Departmental Heads of CIL Head Qtr. It was requested that the pledge should be taken on November 12, 2007 at 11.00 AM along with all officials of their respective Departments. CVO, CIL also vide letter dated 0/11/2007 along with all officials of their respective Departments. CV), CIL also vide letter dated 7/11/2007 requested all CVOs of Subsidiary Companies to prepare an action plan and organize the Vigilance Awareness week in a befitting manner in their respective subsidiaries.

On the 1st day of observance of Vigilance Awareness Week, i.e. on 12.11.2007 matter containing messages from President of India, Prime Minister of India, Chief Vigilance Commission and CIL was published in Times of India, Kolkata, as well as New Delhi edition.

The observance of Vigilance Awareness Week was commenced with the pledge on 12th November, at 11-00AM, in Vigilance Division, CIL (HQ) by all he officials of Vigilance Division of CIL present on the day.

A one-day Interactive Session was organized on 15/11/2007 at Vigilance Division, CIL(HQ). As CVC has laid stress on efficiency and transparency in customer oriented issues, specially in the context of taking initiatives in improvement of the systems and procedures in gear, complaint handling policy, avenues available for redressal of grievances in Departments/Orgnisations etc., the following topics were deliberated during the interactive session, which was attended by Director (Finance), CIL, all the Heads of the Department of CIL and CVO, CIL and all officers of Vigilance Division of CIL:

1 Implementation of e-Payment

2 Operation of e-Procurement and handling of grievances

3 E-Booking of coal and essential features of New Coal Sales Policy including handling of grievances from clienteles.

4 System of handling and redressal of grievances of the employees of CIL

CVO, CIL emphasized on internalization of rules, regulations so as to pre-empt external imposition of control and penalty. He stressed that efforts be made to raise awareness among the users of the services provided by the Departments. He also emphasized that the Departments have to act as focal points to fight corruption and mentioned that the Vigilance Awareness Week would provide an opportunity to rededicate ourselves to this mission and to devise strategies in priority areas like System Improvement and Preventive Vigilance. Vigilance Awareness Week will provide an opportunity to reach out to the stakeholders with an open mind and invite suggestion to chalk out way and means to deliver services in a transparent and efficient manner and to devise methodologies to eliminate corruption from public life.

On the topic of "Implementation of e-Payment", Director (Finance), CIL stated that release of payment to parties is a very long process and in order to avoid any mischief in payments, e-payment, is a better solution. In this regard, he described the process of e-payment and stressed on its implementation in CIL in view of its effectiveness towards transparent business procedure.

On the topic of "Operation of e-procurement and handling of grievances", CGM(Materials Management), CIL deliberated on the process of e-procurement. He elaborated on the "Four Demons" in finalizing a procurement action namely Delay, Discretion, Dispensation and Disinformation. To minimize these drawbacks in procurement action and for a more transparent solution, he welcomed e-procurement as major tool. He informed that, the system of e-procurement had been introduced in Coal India Ltd in 2006-07 with the approval of CIL Board. He further intimated that this process of e-procurement was introduced in 2006-07 for the first time in CIL in respect of central procurement of Explosives for all Subsidiary coal companies. He also described the total process of e-procurement in detail and its different merits in comparison with Manual/paper bidding.

General Manager (Sales & Marketing), CIL deliberated on "e-Booking of coal and essential features of New Coal Sales Policy including handling of grievances from clienteles". He briefed the audience on he New Coal Sales Policy and specially highlighted on policies for existing as well as new consumers.

Chief General Manager (Personnel), CIL deliberated on the topic of "System of handling and redressal of grievances of the employees of CIL". He elaborated on the different committees at CIL and its Subsidiaries to deal with grievances at different levels. It was informed that in addition, grievances from executives of coal companies are directly disposed off at CIL HQ and the concerned executives are replied to through their respective coal companies. He also informed regarding existence of different Standing Grievance Committees to deal with grievances from Wage Board employees. During the discussions, he intimated that amendment of Common Coal Cadre and CDA Rules are in progress. He also shared his views with the participants and answered queries on relevant issues.

31. Particulars of Employees.

None of the employees received remuneration in the year 2007-08 in excess of limits prescribed under Section 217 (2A) of the Companies Act, 1956 read with the companies (particulars of employees) Rules, 1975 as amended.

32. Board of Directors

Shri Partha S. Bhattacharyya, appointed as Chairman w.e.f 1.10.2006, continued during the year under report. Shri Md. Salim Uddin, Director (Personnel & Industrial Relation), CIL was on the Board upto 31.5.2007, Shri K Ranganath, Director (Marketing, CIL continued on the Board during the year. Shri S. Bhattacharya, as Director (Finance) and Shri N. C. Jha, as Director (Technical) were on the Board through out the year. Shri R. Mohan Das, as Director (P&IR) was inducted on the Board w.e.f. 1.6.2007.

Dr. S. P. Seth, Addl. Secretary, MOC continued as part-time Director on the Board during the year. Shri Sujit Gulati, Jt. Secretary and Financial Adviser, MOC and Shri Ashok Gupta, Adviser (Traffic), Railway Board were on the Board as part-time Director upto 10.9.2007 and 9.7.2007 respectively. Shri Sanjiv Mittal, Jt. Secretary and Financial Adviser, MOC amd Shri Vivek Sahai, Adviser (Traffic Transportation), Railway Board were inducted on the Board as part-time Director w.e.f 10.9.2007 and 9.7.2007 respectively.

Shri S. Narsing Rao, CMD, Singareni Colliery Co. Limited, Part-time Director was on the Board upto 5.2.2008. Shri B. K. Sinha, CMD, South Eastern Coalfields Limited was on the Board as Part-time Director upto 6.2.2008. Shri D.C. Garg, CMD, Western Coalfields Limited and Shri A.K. Singh, CMD, Central Mine & Design Institute Limited became Part-time Director w.e.f. 6.2.2008 and 15.2.2008 respectively and continued on the Board during the year.

Shri P. K. Banerjee, Shri Arvind Pande, Shri S. Murari and Prof. S. K. Barua were inducted on the Board as non-official Part-time Directors w.e.f. 24.8.2007.

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 Articles 33(d)(iii) of the Articles of Association of the Company, all the Directors excepting the Chairman, whole-time Directors and part-time non-official Directors shall retire at the ensuing Annual General meeting and they are eligible for reappointment.

The Board of Directors held in all 11 (eleven) meetings during the year 2007-08.

33 Directors Responsibility Statement

In terms of section 217(2AA) of the Companies Act, 1956, read with the significant accounting policy at part A and Notes of Accounts at part B of Schedule M forming part of accounts, 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.

34 Accounts of the Subsidiaries

The copies of Accounts of the Subsidiary Companies for the year 2007-08 are attached in Vol.- II with the Annual Report and Accounts of the Company in compliance with requirement of Sec. 212 of the Companies Act, 1956.

3 5 B.LF.R and BRPSE Status

35 1 Eastern Coalfields Limited (ECL)

As on 31st March, 1997, accumulated loss of the company exceeded its networth by Rs. 251.20 crores, hence Company was referred to BIFR during October, 1997 in terms of Sec. 15(1) of SICA. BIFR registered ECLs case as Case No. 501/98. Due to financial restructuring done by CIL as on 31st March, 1998, by converting unsecured loan of Rs. 1179.45 crores into equity, the networth became positive by Rs. 423.96 crores as on that date and the company came out of BIFR. Since the company continued to incur losses year after year, the networth of the company again became negative as on 31st March, 1999 by Rs. 10.90 crores and hence the company was again referred to BIFR during November, 1999. Companys case was registered as Case No. 501/2000.

The Board for Industrial and Financial Reconstructions (BIFR) vide Order No. 501/2000 dated 23rd February, 2001 declared the company as a sick company under section 3(l)(o) of the Sick Industrial Companies (Special Provisions) Act (SICA), 1985 and appointed State Bank of India as Operating Agency under section 17(3) of the SICA to formulate the Rehabilitation Scheme. After detailed deliberation with the stakeholders, Revised Draft Rehabilitation Scheme of ECL dated 31st January, 2004 was prepared. This was discussed in the Joint Meeting held on 3rd March, 2004. In the Joint Meeting all the Stakeholders supported the scheme. As per discussion held in the Joint Meeting, Operating Agency prepared a fully tied up Draft Rehabilitation Scheme of ECL (March 2004) and submitted the same to BIFR. As per the scheme, the networth of the Company was slated to become positive by 2008-09. BIFR hearing was held on 21st September,

2004. BIFR sanctioned the Rehabilitation Scheme of ECL (March, 2004) on 2nd November, 2004 for implementation. The scheme was examined by the office of the Controller General of Accounts. They had also recommended the scheme for the revival of the company.

Coal price was enhanced from 16th June, 2004. National Coal Wage Agreement - VII (NCWA-VII) was signed between the operating Trade Unions, Coal India Limited and its subsidiary companies for a period of five years from 1st July, 2001 on 15th July,

2005. The impact of enhanced sale value as well as NCWA-VII (Other than Interim Relief @ 15% of basic) was not considered in the financial projection of the BIFR

sanctioned Rehabilitation Scheme. Due to implementation of NCWA-VII, as well as the enhancement of sales price and delay in implementation of projects the scheme was revised as per the advice of BRPSE. As per the revised scheme, the networth of the company was slated to become positive by 2009-10. The Revised Scheme was heard by the Board for Reconstruction of Public Enterprises (BRPSE) on 29th August, 2005. They had recommended the scheme subject to ECL achieving the physical and financial parameters. The recommendations of BRPSE was also heard by the Committee of Secretaries under the Chairmanship of Cabinet Secretary on 13th January, 2006. They had also recommended the scheme for the revival of the company. Cabinet Committee on Economic Affairs had approved the BRPSE recommended Revival Plan of ECL on 5thOctober 2006.

After obtaining the approval of Cabinet Committee on Economic Affairs, Company had submitted the Revised Rehabilitation Scheme to the Monitoring Agency and BIFR during October, 2006 with a request to approve the Revised Revival Plan for implementation. BIFR reviewed the ECLs case on 12th June 2007. BIFR advised the company to submit Govt, approved Revival Plan to Monitoring Agency with a copy to them with 60 days. Company had submitted the same to Monitoring Agency with a copy to BIFR on 7th August 2007. BIFR is yet to approve the scheme.

35 2 Bharat Coking Coal Limited (BCCL)

(A) BIFR status

BCCL was first registered as sick Company vide Registration No. 504/95 dated 18.12.95 as its net worth was negative after completion of Accounts for the year 1994-95. At its first hearing held on 15.2.96, BIFR appointed Shri S. Krishnanmurthy as special Director on BCCL Board till 26.5.2003.

BCCL came out of BIFR at 4th hearing held on 22.12.97 as net worth of the Company became positive due to capital restructuring by converting loan into Equity by CIL amounting to Rs. 996 crores. Before converting loan into Equity by CIL, the paid up share capital of BCCL was Rs. 1122 crores. After conversion, paid up share capital of BCCL is Rs. 2118. However, BCCL was under watch of BIFR u/s 23 of SICA. Since 1997 BCCL is regularly sending Annual Report of BCCL from time to time.

After completion of Accounts for the year 1999-2000, the net worth of the Company became negative and after making reference to BIFR, BCCL was once again registered as Sick Company vide Registration No. 502/2001. In its first hearing held on 3.4.2002, BIFR dismissed the reference as time barred and non-maintainable. BCCL made an appeal vide no. 92/2002 dated 7.5.2002 to AAIFR under section 25 of SICA, challenging the order.

At the AAIFR hearing held on 14.11.2002, after considering all facts and material and timely submission of Reports, the case was remanded back to BIFR for proceeding further in accordance with the law. After above directive of AAIFR, BIFR issued a notice of hearing which was held on 11.2.2004. In the said hearing directed to submit

Valuation Report of the assets of BCCL carried out by the company through a Govt. approved Valuer and Revival Plan of BCCL. The Revised Revival Plan in the line with the approved revival scheme of Coal India Ltd. was considered by BCCL Board at its 232nd meeting held on 2.4.2004. Revival Plan was submitted to BIFR on 12.4.2004. Valuation Report of the assets of BCCL was submitted to BIFR on 31.5.2004 valued by Govt, approved valuer, M/s. Devcon Engineers & Valuers, Kolkata. Thereafter no hearing of BIFR has taken place.

(B) Submission of rehabilitation scheme to Board for reconstruction of Public Sector Enterprises.

Government of India constituted a Board for Reconstruction of Public Sector Enterprises (BRPSE) by notification dated 6th December, 2004. The Revival Plan submitted to BIFR was sent to Ministry of Coal for further examination. The Controller General of Accounts (CGA), Capital Restructuring Cell, Department of Expenditure, Ministry of Finance, Govt, of India, while broadly agreeing with the revival strategy formulated by BCCL, stressed on the need for closure of unviable mines, manpower rationalisation and production enhancement vide letter No. CGA/CRC/PSO/134/115 dated 24.1.2005 of Dy Controller General of Accounts (Capital Restructuring Cell).

As per instruction of Ministry of Coal, BCCL submitted its Rehabilitation Scheme in prescribed format to BRPSE in April, 2005 suitably modifying the Revival Plan submitted to BIFR on 12.4.04. Considering the present scenario, taking into account the financial implication arising out of finalisation of NCWA-VII and incorporating the suggestion of Dy. CGA, a modified Rehabilitation Scheme has been finalised and presented.

BRPSE at its 19th meeting held on 29.8.2005 has advised MOC/BCCL to resubmit the Revival Proposal duly appraised by an independent consultant for its consideration. Accordingly, BCCL Board at its 244th meeting held on 21.1.06 appointed M/s CARE Advisory as independent consultant for appraisal of Revival Plan. Final Report of M/s. CARE Advisory on Revival Plan was accepted by BCCL Board at its 245th meeting on 21.4.2006. A copy of report on revival plan was sent to Secretary (Coal), MOC and Chairman, Coal India Ltd. for further action.

As desired by BRPSE vide its letter no. BRPSE/3(33)2005 dated 21.5.2007, 18 copies of the each of the following documents were submitted for consideration of BRPSE.

i) Updated Revival Proposal of BCCL (figures updated till 2006-07)

ii) Final report of M/s. CARE Advisory on appraisal of BCCLs Revival report.

iii) Summarised note on Revival Proposal of BCCL.

iv) Annual Report of BCCL for the year 2005-06

v) Provisional accounts with Schedules of BCCL for the year 2006-07.

While evaluating the performance of the company for the year 2006-07, it was observed that physical parameter achieved was more or less in line with those envisaged in the report of M/s. CARE Advisory. However, the financial parameter set could not be achieved due to various reasons. Further during the intermediate period, changes had occurred in respect of various factors having a bearing on the operation of the company.

As desired vide letter dated 21.5.07 from Director BRPSE revival/restructuring proposal of BCCL duly updated with the latest available information/figure for the year 2005-06 and 2006-07 was submitted to Director MOC vide letter No. CMD/ES/F-2(B- 07-412) dated 25.8.2007.

As desired by Secretary to the Govt, of India, MOC vide letter No. 13011/4/2004- CA-II dated 20.9.2007, a summarized note on revival proposal of BCCL was submitted to BRPSE in September 2007.

As per advice of Under Secretary to the Government of India, MOC vide reference No. 1301/4/2024-CA-II Vol.-II dated 20.2.2008, a PPT presentation on the revival Proposal of BCCL was made before the Board during 56th meeting of the Board for Reconstruction of Public Sector Enterprises (BRPSE) at New Delhi on 22.2.2008.

As conveyed vide Office Memorandum No. BRPSE/5(2)/2008 Dated 27.2.2008 issued by Director, BRPSE, it is stated that BRPSE has given its recommendation for revival of BCCL under ministry of Coal. The Recommendation of BRPSE recorded in the minutes of 56th meeting of BRPSE is as follows :

QUOTE

"17. Recommendation of the Board:

17.1 The Board discussed the revival proposal in detail and having taken into account all the relevant factors, the view of the MOC as well as CIL, the holding company of BCCL recommended the following revival package:

a) Cash infusion by Coal India Ltd.

Cash support by the way loan upto maximum of Rs. 1350 crores as per year wise phasing indicated in the report of M/s. CARE to be repaid by BCCL as per prescribed repayment schedule.

b) Conversion of loan of CIL into interest free loan:

Conversion of past loan of Rs. 1083 crores of CIL into interest free w.e.f 1/4/05.

c) Waiver of interest, loan by CIL

i) Waiver of interest by CIL in 2009-10 amounting to Rs. 493 crores accrued upto 31.3.2005 and not recognized as income in the books of CIL.

ii) Waiver of the loan of Rs. 1083 crores as on 1.4.2005 by CIL in the year in which BCCL shall be consequently enable to report a positive net-worth.

iii) Waiver of current account balance of Rs.1456 crores as on 1.4.2003 by CIL in the year in which BCCL shall be consequently enabled to report a positive net-worth.

iv) Waiver of accrued interest on other loans by CIL in the year in which BCCL shall be consequently enabled to report a positive net-worth.

17.2 The Board advised MOC/CIL/BCCL to ensure that the funds infused are utilized strictly for the purpose for which they were meant.

17.3 The Board also advised MOC/CIL/BCCL to implement the recommendations of CARE on (i) improving the age profile of workforce, (ii) strengthening the costing system so that viability analysis of various initiatives and profitability analysis of product/mines can be carried out and (iii) investment in information technology for implementation of enterprise wide software solutions in BCCL.

17.4 The Board further recommended that BCCL should, after implementation of the above revival package, achieve the projected performance outlined in para 12 above and the same should be indicated clearly in the Government orders sanctioning the revival package.

17.5 The Board further recommended that while Chairman, CIL should monitor the implementation of the revival plan of BCCL on monthly basis. Secretary, MOC should also monitor it on regular basis. A compliance report should be sent to the Board within one year."

UNQUOTE

The relevant part of the minutes of the Meeting of REVIEW OF COAL SECTOR taken by Principal Secretary to Prime Minister on 3rd June 2008 circulated by Director, PMO New Delhi vide reference No. 200/3 l/c/78/2005-ES.I dated 6.6.2008 reads as follows:

"REVIVAL OF BCCL- The confirmed minutes of the meeting held on 22.2.2008 by BRPSE for revival package have been received. The matter is being referred to BIFR for further concurrence."

36. Acknowledgement:

The Board of Directors of your Company wishes to record their deep sense of appreciation for the sincere efforts put in by the employees of the company and the Trade Unions. Your Directors also gratefully acknowledges the co-operation, support and guidance extended to the company by the various Ministries of the Government of India in general and Ministry of Coal in particular, besides the State Governments. Your Directors also acknowledges with thanks the assistance and guidance rendered by the Auditors, the Comptroller and Auditor General of India and the Registrar of Companies, West Bengal and wishes to place on record their sincere thanks to the Consumers for their patronage.

37. Addenda

The following are annexed.

i) The comments and review of the Comptroller and Auditor General of India.

ii) Replies to the observations made by the Statutory Auditors on the Accounts for the year ended 31st March, 2008.

iii) Statement pursuant to Sec. 212(i) (e) of the Companies Act, 1956.

For and on behalf of the Board of Directors

Sd/- Partha S. Bhattacharyya Chairman

Kolkata, the dated 24th July, 2008.

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