Coal India Ltd
Directors Reports
To
The Members, Coal India Limited
Ladies and Gentlemen,
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 washeries, (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 Rs. 95.10 Crore.
The Hon'ble Supreme Court of India in its judgement 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 judgement 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 06-02-2012. 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 Rs. 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 2017-18, the paid up and subscribed capital of the Company remained at
Rs. 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 2017 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 2017-18, 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
2017-18, the Authorised 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. 1799.64 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 01.01.2017.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 2017-18 (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 non-executives 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 2016-17 (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)* |
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.) |
11.31 |
14.80 |
| (Considering Face Value of Rs.10 per share) |
|
|
| Dividend per Share (Rs.) |
16.50 |
19.90 |
| (Considering Face Value of Rs.10 per share) |
|
|
| 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 |
*Production and Offtake of Coal for FY 2017-18 includes 3.227 MT and 1.327 MT (FY
2016-17 5.324 MT & 4.118 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
During the year 2017-18, a sum of Rs. 544.89 crore (Rs. 510.75 crores) was transferred
to General Reserve out of CIL Consolidated profits and amount of Rs. 483.80 crores was
utilized for issuing of bonus shares.
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 Rs. 10,242.24 crores @ Rs.16.50 per share on 6,20,74,09,177 number of Equity
Shares of Rs.10/- each fully paid up. Out of above total dividend, the share of Govt of
India was Rs. 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 2017-18, 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--vis actual off-take for 2017-18 and 2016-17 is shown in Annexure 6.
Offtake 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 upto 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 Utilisation 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 2016-17 &
2017-18 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 2017-18, 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 upto 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 despatches 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,
despatches 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--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 2016-17 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 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'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 2017-18. 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 2017-18, 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 2017-18 as against 16% during 2016-17. In Exclusive E Auction scheme during
2017-18, 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 2017.
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 2017
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 2017-18, 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 finalising '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 Rs. 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 1.4.2017 alongwith 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 Rs.
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 offtake 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 utilisation 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--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 2017-18. 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 Approval |
Sanctioned Capacity (Mty) |
Sanctioned Capital (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 2017-2018: -
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 upto 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 upto 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 2017-18, 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--vis 4886.83
Million Units during 2016-17, 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--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--vis 3.19 kWh/
CuM during 2016-17 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 2017-18 is 121.23%
of BE (99.16% in 2016-17). 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 |
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.
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 Pattern (%) |
Share Capital (Rs. Crore) |
Shareholding Pattern (%) |
Share Capital (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 09.01.2017 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. Meanwhile, with special initiative of Dr. Scott
Smouse, discussion between the expert team of CMPDI and Dr. Mohanty was held on 11.05.17
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 12.09.2017
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 07.09.2017) 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 20.12.2017 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 23.03.2017 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 27.09.2017, 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 09.11.2017.
Reply from Prof. Yoon of VTU is awaited.
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 was 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 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 06.09.2016 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 28.11.2016 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 2017. The revised
proposal after incorporating comments of CMPDI was received through email dated
04.07.2017. 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 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. 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
• 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.
• CSIRO Project Team visited CMPDI, Moonidih Mine of BCCL and Chinakuri Mine of
ECL during 9th -19th May, 2017. 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)
• 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 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 27th Dec, 2016 and the Board advised to place the proposal before the Apex Committee
with certain modification.
• 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.
• 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.
• In reply, vide email dated 04.12.2017, 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
• 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.
• 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.
• 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 2017. After getting
approval from R&D Board of CIL, the project has been commenced w.e.f. 01.09.2017.
• 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.
• To expedite the co-operation, a Technology Mission headed by Secretary, Ministry
of Coal visited Australia from 17th 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 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 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, 2017.
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 27.11.2017. 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, 2017. 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 04.05.2017.
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 28.08.17 to 01.09.17. 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.
India-Finland Collaboration
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% upto 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 desk-top scoping study at a site located centrally to a group of washeries 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.'17 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 aluminium 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
29.11.2017. Further information is yet to be communicated.
India-Afghanistan Collaboration
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 14.03.2017. 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 11.09.2017
in New Delhi and presented the capabilities of Belarus companies. A high-powered
delegation from Belarus was scheduled on 12.09.2017 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 upto 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
upto 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 10.03.2017. 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 20.3.2017 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 non-availability 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 20.12.2017 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 2017. 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 24.03.2017. 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.
• 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. 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 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 2017-18 shows that all the
major OCPs (excavating > 5 Mm (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 Rs. 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, 2017. 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, 2017 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 1948. 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 upto 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
2017-18 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 2017-18, 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
2017-18. 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 2017-18.
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 Rs. 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--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 upto 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 2017-18 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 Rs. 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.
17. 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-2017 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 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 Crche 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.
• 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 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.
17. 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 Organisation (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 2017 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 Upgradation:
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 |
Brajraj 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:
DG (Chief Inspector of Mines)
DDG (Regional Inspector of Mines ) one for each region
DMS (Inspector of Mines) for group of mines under one DDG
DDMS (Inspector of Mines) 3-4 mines under one DMS
• Safety Monitoring Agencies in CIL -
CIL Safety Board (at CIL corporate level), S&R Division, CIL
Tri-partite Safety Committee (At Subsidiary HQ), ISO (Internal safety Organisation)
Tri-partite Safety Committee (At Area), Area Safety Officer
Workman Inspectors (Mining / Mechanical / Electrical), Safety Committee, Safety Officer
• Safety Implementation in CIL: Organizational hierarchy for implementation
of Safety Policy in mines of CIL is as under:
Owner – Director (Technical) in case of CIL & its subsidiaries
Agent (Area GM & SAM / PO)
Manager ( Mine Manager)
Safety Officer, Ventilation Officer, Asst. Manager & Engineer
Overman, Foreman & Electrical Supervisor
Mining Sirdar
Competent Persons
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 01.04.2017 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 2016-17 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 Rs. 15712.62 per Month to Rs. 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 Rs. 8000/- and Rs. 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. 01.10.2017.
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.
01/10/2017. 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 Rs. 40,000/- shall be contributed by the employees on roll as on
01/07/2016 as a membership contribution and Management shall contribute Rs. 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 31.12.2017 by making
a contribution of Rs. 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 Nationalisation 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
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 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 honouring the exceptional
talent. CIL was awarded second prize under Best Enterprise Award (Maharatna Category) in
2017-18 by WIPS
10) Special Cash Award:-
During 2017-18, an amount of Rs. 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 @ 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 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 12.08.2017 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 18.01.2017, 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 12.08.2017, 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 02.11.2017 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 01.11.2017 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. Rationalisation 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 2017-18 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_
Directors_for_2017_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 (Consolidared) 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 2016-17 and the Cost Audit Report was approved by the Board of Directors in their
347st meeting held on 25th Sep 2017. 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_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
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 2017-18.
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--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--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