Coal India Ltd


BSE: 533278 | NSE: COALINDIA | ISIN: INE522F01014 
Market Cap: [Rs.Cr.] 183,743 | Face Value: [Rs.] 10
Industry: Mining / Minerals / Metals

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Director's Report

DIRECTORS

To

The Members,

Coal India Limited.

Ladies & Gentlemen,

On behalf of the Board of Directors, I have great pleasure in presenting to you, theThirty-Ninth Annual Report of Coal India Limited (CIL) and Audited Accounts for the yearended 31st March, 2013 together with the reports of Statutory Auditors and the Comptrollerand Auditor General of India thereon.

Coal India Limited (CIL) is a ‘Maharatna’ company underMinistry of Coal, Government of India with headquarters at Kolkata, West Bengal. CIL isthe single largest coal producing company in the world and the largest corporate employerwith manpower of 357,926 (as on 1st April, 2013). CIL operates through 81 mining areasspread over 8 provincial states of India. Coal India has 462 mines of which 270 areunderground, 169 opencast and 23 mixed mines. CIL further operates 17 coal washeries (12coking coal and 5 non-coking coal) and also manages 200 other establishments likeworkshops, hospitals etc. CIL has 27 training Institutes. Indian Institute of CoalManagement (IICM) as a ‘Centre of Excellence’ operates under CIL and impartsmulti disciplinary Management Development Programmes to executives. Coal India’smajor consumers are Power and Steel sectors. Others include Cement, Fertilizer, BrickKilns, and a host of other industries.

CIL has eight fully owned Indian subsidiary companies viz.:

Eastern Coalfields Limited (ECL),

Bharat Coking Coal Limited (BCCL),

Central Coalfields Limited (CCL),

Western Coalfields Limited (WCL),

South Eastern Coalfields Limited (SECL),

Northern Coalfields Limited (NCL),

Mahanadi Coalfields Limited (MCL) and

Central Mine Planning & Design Institute Limited (CMPDIL).

In addition, CIL has a foreign subsidiary in Mozambique namely

Coal India Africana Limitada (CIAL).

The mines in Assam i.e. North Eastern Coalfields continue to be managed directly byCIL. Similarly, Dankuni Coal Complex also continues to be on lease with South EasternCoalfields Limited.

MCL has three subsidiaries viz. MNH Shakti Ltd., MJSJ Coal Ltd. and Mahanadi BasinPower Ltd with 70% ,60 % and 100% equity holding respectively.

During 2012-13, SECL has incorporated two subsidiary companies viz M/s ChhattisgarhEast Railway LTD on 12th Mar’13 and M/s Chhattisgarh East- West Railway Ltd on 25thMar’13 with 64% holding in each of the subsidiary.

1. NOTABLE ACHIEVEMENTS

CMPDI bags International Award

Central Mine Planning & Design Institute (CMPDI) the Ranchi based mine consultancyarm of Coal India Limited (CIL) received the reputed "Geospatial World ExcellenceAward 2012" on 24th April, 2012, in Amsterdam, The Netherlands. The award conferredon CMPDI, amidst stiff competition, was in recognition of excellent usage of Geospatialtechnology for land reclamation monitoring of coal mines on behalf of CIL. CMPDI wasselected for the award out of total 149 nominations by a panel of eminent internationaljury.

Coal India features in Platts Global Energy Company rankings

Coal India Limited was named ‘Platts Top 250 Global Energy Company Rankings’for 2012 for having distinguished itself through its remarkable performance last year.

Since, 2002 Platts has ranked energy companies’ financial performance globally,regionally and by industry sector. For 2012 CIL’s rank was 48 on overall globalperformance. Platts also analyzed energy companies by nine industry classifications andthree regions. CIL ranked No. 2 in Coal and Consumable Fuels in Asia/Pacific Rim; alsoNo.2 in Coal and Consumable Fuels globally and No.11 in overall performance inAsia/Pacific Rim.

Platts rankings are based on four key metrics – assets, revenues, profits andreturn on investment/ capital. All companies which ranked are publicly held and haveassets greater than US $4 Billion.

The rankings were announced in a formal Asia Awards Function on 23 October 2012 inSingapore.

Coal India receives Geospatial Award

Coal India Limited was conferred with ‘Best Geospatial Application in anEnterprise’ Award, on 22 January 2013 by Geospatial Media and Communications Pvt.Ltd.

The award received by Shri S Narsing Rao, Chairman, CIL, on behalf of the company in aformal ceremony "India Geospatial Excellence Awards" was for CIL’sinnovative and successful implementation of geospatial technologies in exploration andmining techniques which helped in managing and streamlining the usage of naturalresources.

Coal India bags CSR Award

Coal India Limited was awarded "IPE CSR Corporate Governance Award 2012" forits outstanding achievement in Corporate Social Responsibility. The award instituted byInstitute of Public Enterprises and endorsed by World CSR Congress, CMO Asia and AsianConfederation of Business was presented in a formal function to CIL Officials. CIL laysspecial emphasis on CSR activities and is among the top PSUs of the country in terms fundallocation to CSR activities.

CIL conferred with two CSR Awards

Coal India Limited was conferred with two Corporate Social Responsibility Awards on 18February 2013-the World CSR Day. The awards, ‘Global CSR Excellence and LeadershipAward’ for Best Corporate Social Responsibility Practices and ‘ Blue Dart MostCaring Companies of India Award’ were presented in a formal function to CILofficials.

2. FINANCIAL PERFORMANCE

2.1 Financial Results

CIL is one of the largest profit making and tax & dividend paying enterprises. CILand its subsidiaries has achieved an aggregate pre-tax profit of Rs. 24,979.04 crores forthe year 2012-13 against a pre-tax profit of Rs. 21,272.66 crores in 2011-12,thusregistering a growth of 17.42% over earlier year.

(Rs. in crores)
Company 2012-13 2011-12
Profit Profit
ECL (+) 1897.18 (+) 962.13
BCCL (+) 1709.06 (+) 822.36
CCL (+) 2683.56 (+) 1970.24
NCL (+) 4420.58 (+) 4265.67
WCL (+) 428.87 (+) 440.50
SECL (+) 6290.37 (+) 6002.87
MCL (+) 6202.48 (+) 5463.69
CMPDIL (+) 29.77 (+) 30.79
CIL/NEC (+) 10338.03 (+) 8599.95
Sub-Total (+) 33999.90 (+) 28558.20
Less: Dividend from Subsidiaries (-) 9038.08 (-) 7307.20
Total (+) 24961.82 (+) 21251.00
Adjustment for deferred revenue income (+) 18.34 (+) 21.59
Adjustment for exchange rate variation on Current Account overseas subsidiary (+) (1.12) (+) 0.07
Overall Profit as per Consolidation of Accounts (+) 24979.04 (+) 21272.66

CIL has achieved post tax profit of Rs. 17,356.36 crores in 2012-13 compared to Rs.14,788.20 crores in 2011-12 thus registering a growth of 17.37% over last year.

Highlights of performance

The highlights of performance of Coal India Limited including its Subsidiaries for theyear 2012-13 compared to previous year are shown in the table below:

2012-13 2011-12
Production (in million tonnes) 452.21 435.84
Off-take of Coal (in million tonnes) 465.18 433.08
Sales (Gross) (Rs./Crores) 88281.32 78410.38
Gross Profit (Rs./Crores) 25024.21 21326.64
Capital Employed (Rs./Crores) 75488.14 66599.31
Net Worth (Rs./Crores) 48471.99 40453.02
Profit before Tax (Rs./Crores) 24979.04 21272.66
Profit after Tax (Rs./Crores) 17356.36 14788.20
Gross Profit / Capital Employed (in %) 33.15 32.02
Profit before Tax / Net Worth (in %) 51.53 52.59
Profit after Tax / Net Worth (in %) 35.81 36.56
Earning Per Share (Rs.) (Considering Face Value of Rs. 10 per share) 27.63 23.47
Dividend per Share (Rs.) (Considering Face Value of Rs. 10 per share) 14.00 10.00
Coal Stock (Net) ( in terms of No. of months Net Sales) 0.76 0.92
Sundry Debtors (Net) (in terms of No of Months Gross Sales) 1.42 0.87

2.2 Dividend Income and Pay Outs

Dividend income of CIL accounted for during the year under review, based on therecommendations from five profit making subsidiaries namely, CCL, NCL, WCL, SECL and MCLwas Rs. 9038.08 crores as against Rs. 7307.20 crores in previous year, the subsidiary-wisebreakup of which are as under:-

(Rs. in crores)
Name of the Subsidiary Dividend Income of CIL
CCL 1486.74
(748.10)
NCL 1662.05
(2067.27)
WCL 184.04
(323.25)
SECL 2984.73
(1992.02)
MCL 2720.52
(2176.56)
Total 9038.08
(7307.20)

Figures in brackets are for previous year.

Your Directors recommended dividend payment of Rs. 8842.91 crores @ Rs. 14/- pershare on 6316364400 Equity Shares of Rs. 10/- each fully paid value at Rs. 6316.36 crores.Out of total dividend, Govt of India gets Rs. 7958.62 crores and other shareholders getRs. 884.29 crores. (Earlier year - Govt of India - Rs. 5684.72 crores and othershareholders – Rs. 631.64 crores)

3. COAL MARKETING

3.1 (a) Off-take of Raw Coal

Off-take of raw coal continued to maintain its upward trend and reached 465.18 milliontonnes for fiscal ended March 13, surpassing previous highest of 433.08 million tonnesachieved during the last year, i.e., an increase of 7.4 % over the last year. Off-takesuffered heavily in most of the coalfields, due to excessive rainfall inAugust-September’2012. There was gradual improvement in the second half of the year(Oct’12-March’13) with CIL surpassing the off-take target of second half. Theoverall raw coal Off-take achieved was 99 % of the Annual Action Plan Target.

Company-wise coal off-take:

Company-wise target vis--vis actual off-take for 2012-13 and 2011-12 are shown below:-

(Figs. in Mt)

2012-13 2011-12

Growth over last year

Company AAP Target Achieved % Achieved Achieved Abs. %
ECL 34.25 35.84 104.64 30.83 5.01 16.25
BCCL 31.80 33.04 103.90 30.16 2.88 9.55
CCL 56.60 52.89 93.45 48.04 4.85 10.10
NCL 69.25 67.29 97.17 63.61 3.68 5.79
WCL 45.25 41.55 91.82 41.97 -0.42 -1.00
SECL 118.00 121.99 103.38 115.15 6.84 5.94
MCL 113.75 111.96 98.43 102.53 9.43 9.20
NEC 1.10 0.62 56.36 0.80 -0.18 -22.50
CIL 470.00 465.18 98.97 433.08 32.10 7.41

From the above it may be seen that ECL, BCCL & SECL had not only achieved itstarget but also exceeded last year’s level of despatch. Barring WCL and NEC all othercoal companies registered a positive growth in off-take. Off-take from NCL was affectedmainly due to less dispatch through MGR. Less transportation due to law & orderproblem and frequent break-down of surface miner affected dispatch from CCL. Off-take fromWCL was affected due to less dispatch through non-rail mode and transportationconstraints. Less transportation due to law & order problem coupled with problemsassociated with MGR movement to Talcher STPS as well as less availability of railwaywagons affected the overall off-take of MCL.

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

Sector-wise break-up of dispatch of coal & coal products for 2012-13 against targetand last year's actual are given below:

(Figs. in Mt)

Year 2012-13 2011-12

Growth over last year

Sector Target Despatch % Satn. Actual Abs. %
Power (Util) 342.31 345.43 100.91 312.07 33.36 10.69
Steel * 4.54 4.74 104.41 4.12 0.62 15.05
Cement ** 7.70 6.47 84.03 6.69 -0.22 -3.29
Fertilizer 2.70 2.50 92.59 2.79 -0.29 -10.39
Others 109.30 107.07 97.96 107.28 -0.21 -0.20
Despatch 466.55 466.21 99.93 432.95 33.26 7.68

* dispatch of washed coal,direct feed & blendable coal to steel plants,

** dispatch to cement plants excluding cement cpp.

3.2 Dispatches of coal and coal products by various modes:

Dispatches of coal and coal products during 2012-13 were 466.21 million tonnes against432.95 million tonnes in 2011-12, thus registering a growth of 7.7 %. Overall dispatch bynon-rail mode was 101% of the target.Growth in despatches via rail mode was 9.6 % whereasoverall non-rail mode was 5.5 %. Performance could have been even better but for lessmovement through MGR at ECL, NCL, MCL and WCL, though road dispatch of CIL was more thanthe target. Rail dispatch had been almost at par with Target.

Dispatch of coal and coal products by various modes for the years 2012-13 and 2011-12are given below:

(Figs. in million tonnes )

Year 2012-13 2011-12

Growth over last year

Mode AAP Target Despatch % Satn. Actual Abs. %
Rail 253.62 251.11 99.01 229.07 22.04 9.62
Road 108.51 115.68 106.61 113.39 2.29 2.02
MGR 92.15 88.77 96.33 79.32 9.45 11.91
Other Modes 12.27 10.65 86.80 11.17 -0.52 -4.66
Overall 466.55 466.21 99.93 432.95 33.26 7.68

3.3 Wagon Loading

Sustained efforts and regular coordination with railways at different levels sawloading increase by 18.7 rakes per day over the last year .Overall materialization was98.2 % of the target. Company wise performance shows that ECL & WCL not only exceededlast years level of loading but also surpassed its target.NCL achieved its target and alsoloaded more than last year. Rake loading performance was more than last year at BCCL, CCL,SECL & MCL. The loading potentials of CCL, NCL, MCL & SECL-Korba could not befully utilized due to inadequate supply of empty wagons. In some of the coalfields viz.CCL-Karanapura and MCL-Talcher, desired level of rail despatch could not be achieved dueto less transportation of coal to sidings arising out of law & order problem andobstruction/agitation by local people on various demands. Rail despatch at NCL could havebeen even better but for supply of N-Box and NHL-wagons for up-country movement. Thisapart, availability of wagons was affected in the fourth quarter of the year due toMahakumbh.

(Figs. in Rake/day)

2012-13 2011-12

Growth over last year

Company AAP Target Achieved % Achieved Achieved Abs. %
ECL 16.1 17.8 110.56 14.8 3.00 20.27
BCCL 21.0 20.8 99.05 19.8 1.00 5.05
CCL 30.4 27.3 89.80 25.4 1.90 7.48
NCL 18.7 18.7 100.00 17.7 1.00 5.65
WCL 15.0 17.5 116.67 14.0 3.50 25.00
SECL 35.9 32.9 91.64 31.8 1.10 3.46
MCL 51.9 50.8 97.88 43.5 7.30 16.78
NEC 0.81 0.60 74.07 0.74 -0.14 -18.92
CIL * 189.8 186.4 98.20 167.7 18.66 11.13

3.4 Consumer Satisfaction:

i) In order to ensure enhanced customer satisfaction, special emphasis has been givento quality management. Steps were undertaken to monitor quality right at the coalfaceapart from bringing further improvements in crushing, handling, loading and transportsystem.

ii) CIL has built up coal handling plants with a capacity of about 296 MT per annum soas to maximize dispatches of crushed / sized coal to the consumers. In addition, thewasheries at BCCL, CCL, WCL and NCL have adequate crushing / sizing facilities to the tuneof about 39.4 million tonnes.

iii) Measures like picking of shale / stone, selective mining by conventional mode aswell as by surface miners, adopting proper blasting procedure / technique to reduce thepossibility of admixture of coal with overburden materials, improved fragmentation of coaletc. are being taken for improving coal quality.

iv) Surface Miners have been deployed for selective mining at some of the mines toimprove the quality of coal. Action is being taken for deployment of more surface minersin other mines where geo-mining condition permits. Already 31 Surface Miners have beendeployed in MCL, CCL, ECL and SECL at opencast mines and are working satisfactorily.

v) Joint sampling system is in vogue for major consuming sectors e.g. power (utilitiesas well as captive), steel, cement, sponge iron covering more than 95% of total productionof CIL. On overall, large consumers having annual quantity of 0.4 million tonne or moreand having FSA have been covered for sampling. The achievement of grade conformity inrespect of sampling and analysis has been to the tune of 94.4% upto Dec’12 in respectof supplies to power sector during 2012-13. Consumers, covered under the agreed samplingarrangement are required to pay as per the analysed grade of coal. This system is workingsatisfactorily.

vi) Electronic Weighbridges with the facility of electronic printout have beeninstalled at rail loading points to ensure that coal dispatches are made only after properweighment. For this purpose, coal companies have installed 168 weighbridges in the Railwaysidings and 478 weighbridges for weighment of trucks. Coal companies have also takenactions for installation of standby weighbridges to ensure 100% weighment.

During 2012-13, about 99.1% of coal dispatches to power houses have been weighedcompared to about 99.00% during 2011-12. Sized coal despatches to power houses during2012-13 were 98.66% compared to about 98.64% during 2011-12.

3.5 Marketing Of Coal :

(A) Status of implementation of different provisions under New Coal Distribution Policy(NCDP) is as under:

(i) For power stations, commissioned on or before 31.03.2009, 306 million tonnes hadbeen considered to be supplied through bilateral legally enforceable Fuel SupplyAgreements (FSA) with a trigger level of 90%. The total quantity covered under FSA againstthe allocation as on March’13 was 303.7 million tonnes. Apart from the above, 176Letter of Assurances have been issued to power plants by subsidiary companies of CIL, asper recommendations of various SLC (LT) Meetings for a quantity of about 421 Milliontonne. In terms of MOC letter dated 17.02.2012, referred under Presidential Directives,out of the above power plants, plants aggregating capacity of about 60,000 MW and coveringa quantity of about 250 Million tonnes commissioned/likely to be commissioned during theyear 2009-10 to 2014-15, FSAs for 61 units/plants have been executed till 31st Marchcovering a quantity of 88.8 Million tonne per annum. Out of the total 61 FSAs signed, 25FSAs have been signed by the Government TPPs which includes UPRVUNL, APGENCO,TANGEDCO,RRVUNL,DVC, MAHAGENCO,MPPGCL and KPCL, involving 9955 MW capacity and ACQ of 42.4MT. However signing of FSA with NTPC for their new power plants is yet to be materialised.

(ii) In addition, 6 power plants having Pre-NCDP Long Term Linkage (commissioned &appearing in the MOC letter dated 17.02.2012 not having LOA) are drawing coal underFSA/MOU.

(iii) Out of 1210 valid linked units other than power and steel plants with eligibleFSA quantity of 65.75 mill tonne, 1194 units executed FSAs for 64.78 mill tonne

(iv) For supply of coal to SME sector, 8 mill tonnes was earmarked for allocation toagencies nominated by the State Govt’s/ Union Territories. 19 states / UT’s senttheir nomination for 30 state agencies for the year 2012-13. State agencies have signed 24FSAs for 4.14 mill tonnes and drew coal accordingly.

(v) After implementation of NCDP, 417 LOAs were issued to consumers of sponge iron, CPPand cement sectors against 519 notices issued to consumers of these sectors as perrecommendations of various SLC (LT) meetings for a quantity of 65 Million tonnes perannum. Out of these, 305 FSAs have been concluded till date for 40.2 Million tonnes perannum.

(vi) Under Forward E Auction scheme during the year ended Mar13, quantity allocated was4.96 mill tonnes as against 7.55 mill tonnes allocated during the last year. During theperiod under review, 44.26 mill. tonnes of coal was allocated under spot e- auction to thesuccessful bidders as against 49.72 mill. tonnes of coal allocated during the last year.The notional gain through Spot E-auction over & above the notified price was 49.9% asagainst 66.6% during the last year.

(B) Initiative for overcoming logistic bottleneck:

CIL came out with a scheme for supply of coal on "As is – Where is"basis to its power consumers under FSA, to be taken by the purchaser by arranging theirown logistics from the stock points. The scheme aimed at augmenting coal dispatch capacitywhich is constrained due to various logistics issues restricting transportation todispatch points.

Similar provision is provided in the FSA for the Seller to offer coal upto 5% of thecontracted quantity by using their own transportation arrangements, either by Road or Roadcum Rail (R-C-R) mode in three coal companies namely CCL, MCL and SECL where logisticsinadequacy has restrained coal supply potentials of these companies.

(C) Impact of signing FSA in the modified Model as per the Presidential directives onthe financial position of the company:

The Fuel Supply Agreement (FSA) for power plants commissioned/being commissioned after31.3.2009 was revised under a Presidential Directive dated 4.4.2012 and approved in the282nd meeting of CIL Board. The directives issued under Clause 37 of Articles ofAssociation of the Company inter alia directed the following:

a) CIL will sign FSA with power plants that have entered into long-term PPAs withDISCOMs and have been commissioned/would get commissioned after 31.3.2009 and on or before31.3.2015

b) With the plants included in (a) above that have been commissioned upto 31.12.2011,CIL will sign FSAs before 31.3.2012

c) The FSA signed with regard to power plants in (a) above shall be for full quantityof coal mentioned in Letters of Assurance (LOAs) for a period of twenty years, to bereviewed after every five year, with trigger level of 80% for levy of disincentives and90% for levy of incentives.

d) To meet the commitment, CIL may reduce coal meant for e-auction from 10% to 7% ofits production progressively, till the end of XII Plan.

Considering the enhanced commitment, CIL Board while approving the revised FSA modeldirected to keep the penalty for short supply at a token level of 0.01% of the weightedaverage price of the coal supplied with a moratorium of three years. Subsequently in the289th Meeting of the Board, the penalty provisions for short supply were revised and themoratorium was withdrawn. During the process of incorporation of such revisions, CIL Boardassessed the likely availability of coal and accordingly agreed for assuring 65% of theACQ from domestic CIL sources till the end of 2014-15, which is to increase to 70% in2015-16 and 75% from 2016-17 onwards. In order to attain the trigger level, Board directedthat CIL shall supply imported coal on cost plus basis to willing power stations. In casepower stations prefer to import coal themselves, the quantity shall be considered asdeemed delivery.

CIL has also made provisions for supply of coal from the stock on road cum rail modefor three companies, viz. CCL, SECL and MCL, where the available rail logistics are notmatching with the production programme.

This apart, considering availability of coal stock at pitheads, CIL offered coal fromthe stock on ‘as is where is’ basis to willing power station for meeting its FSAobligations.

During the year 2012-13, coal offered through e-auction had been more than 10% of theproduction and as reported by the coal companies there had been no adverse financialimpact in 2012-13 on account of supplies of coal to the new power plants under themodified terms of the FSA.

3.6 Coal Beneficiation

CIL operates 17 coal washeries with a total capacity of 39.4 Mty. Out of these, 12 arecoking coal washeries with a total capacity of 22.18 Mty and 5 are non coking coalwasheries with a total capacity of 17.22 Mty.

Contracts have been finalised for three more washeries while action for finalisationfor two more washeries is in advance stage. Further 12 more washeries have been identifiedto be taken up during the XII Plan.

3.7 Stock of Coal, Coke etc.

Net adjusted value of the pithead stock of coal and other products at the close of theyear 2012-13 after provision for stock deterioration etc. was Rs. 4301.16 crores, whichwas equivalent to 0.76 months value of net sales. The company-wise position of stocks heldon 31.03.2013 and on 31.03.2012 are given below:

(Rs. in crores) (Rs. in crores)

Stock in terms of no. of months of Net Sales

Company Net Value of stock as on 31.03.2013 Net Value of stock as on 31.03.2012 As on 31.03.13 As on 31.03.12
ECL 307.98 476.65 0.40 0.69
BCCL 757.05 946.79 1.07 1.56
CCL 1103.23 1379.68 1.55 2.26
NCL 629.32 391.10 0.86 0.59
WCL 584.54 488.14 1.05 0.87
SECL 445.55 572.54 0.33 0.46
MCL 460.38 530.59 0.55 0.67
NEC/CIL 13.11 15.65 0.45 0.45
Total 4301.16 4801.14 0.76 0.92

3.8 Coal Sales Dues

Net Coal Sales dues outstanding as on 31.03.2013 after providing of Rs. 1855.65 crores(previous year Rs. 1724.60 crores) for bad and doubtful debts, was Rs. 10480.21 crores(previous year Rs. 5662.84 crores) which is equivalent to 1.42 months combined gross salesof CIL as a whole (previous year 0.87 months). Subsidiary-wise break-up of coal sale duesoutstanding as on 31.03.2013 against 31.03.2012 are shown below:-

Figures in Rs. Crores

Coal Sales dues

Coal Sales dues

Company

As on 31.03.2013

As on 31.03.2012

Gross Net Gross Net
ECL 3981.52 3582.13 2665.04 2459.37
BCCL 1934.31 1372.05 1619.40 951.72
CCL 2080.45 1533.87 1471.75 1078.66
NCL 1741.28 1738.21 526.14 425.70
WCL 551.66 471.27 133.05 60.51
SECL 1582.46 1350.29 710.09 464.28
MCL 451.93 430.91 251.19 222.59
NEC/CIL 12.25 1.48 10.78 0.01
Total 12335.86 10480.21 7387.44 5662.84

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

During the year 2012-13, CIL and its Subsidiaries paid/adjusted Rs. 19731.11 crores(previous year Rs. 16245.61 crores) towards Royalty, Cess, Sales Tax and other levies asdetailed below:-

Figures in Rs. Crores

2012-13 2011-12
Royalty 7248.61 5315.14
Cess & Others 2355.73 2745.85
Sales Tax / VAT 2908.49 2537.05
Stowing Excise Duty 457.54 421.75
Central Excise Duty 4227.49 3040.27
Clean Energy Cess 2319.35 2082.40
Entry Tax 213.90 103.15
Total 19731.11 16245.61

State-wise & Company-wise break-up of during 2012-13 are given below

Figures in Rs. Crores

Company Particulars MP Chattisgarh WB Jharkhand Maharashtra UP Orissa Assam CCO/GOI 2012-13
ECL Royalty 11.11 229.04 240.15
Cess & Others 1375.07 1375.07
Sales Tax/VAT/CST 321.97 54.59 376.56
Stowing Excise Duty 34.75 34.75
Central Excise Duty 376.50 168.50 545.00
Clean Energy Cess 80.34 71.91 152.25
Entry tax 0.00
Total 2164.99 524.04 34.75 2723.78
BCCL Royalty 0.04 770.45 770.49
Cess & Others 3.79 3.79
Sales Tax/VAT/CST 10.75 292.70 303.45
Stowing Excise Duty 32.31 32.31
Central Excise Duty 518.10 518.10
Clean Energy Cess 171.51 171.51
Entry tax 0.00
Total 14.58 1752.76 32.31 1799.65
CCL Royalty 916.56 916.56
Cess & Others 0.00
Sales Tax/VAT/CST 273.05 273.05
Stowing Excise Duty 52.13 52.13
Central Excise Duty 547.08 547.08
Clean Energy Cess 259.91 259.91
Entry tax 0.00
Total 1996.60 52.13 2048.73
NCL Royalty 854.99 236.98 1091.97
Cess & Others 288.35 13.24 301.59
Sales Tax/VAT/CST 184.38 177.48 361.86
Stowing Excise Duty 66.72 66.72
Central Excise Duty 281.28 222.91 504.19
Clean Energy Cess 177.59 139.06 316.65
Entry tax 6.40 29.54 35.94
Total 1792.99 819.21 66.72 2678.92
WCL Royalty 140.31 704.23 844.54
Cess & Others 0.00
Sales Tax/VAT/CST 60.73 268.70 329.43
Stowing Excise Duty 41.29 41.29
Central Excise Duty 73.59 363.67 437.26
Clean Energy Cess 31.33 174.16 205.49
Entry tax 9.34 9.34
Total 315.30 1510.76 41.29 1867.35
SECL Royalty 492.99 1624.16 2117.15
Cess & Others 246.05 424.25 4.98 675.28
Sales Tax/VAT/CST 168.11 558.41 3.58 730.10
Stowing Excise Duty 119.03 119.03
Central Excise Duty 206.14 763.52 1.39 971.05
Clean Energy Cess 75.65 532.73 608.38
Entry tax 20.38 76.15 96.53
Total 1209.32 3979.22 9.95 119.03 5317.52
MCL Royalty 1225.06 1225.06
Cess & Others 0.00
Sales Tax/VAT/CST 520.40 520.40
Stowing Excise Duty 110.63 110.63
Central Excise Duty 685.87 685.87
Clean Energy Cess 602.04 602.04
Entry tax 71.95 71.95
Total 0.00 3105.32 110.63 3215.95
CIL/NEC/
Others Royalty 42.69 42.69
Cess & Others 0.00
Sales Tax/VAT/CST 13.64 13.64
Stowing Excise Duty 0.68 0.68
Central Excise Duty 18.94 18.94
Clean Energy Cess 3.12 3.12
Entry tax 0.14 0.14
Total 78.53 0.68 79.21
Overall Royalty 1488.29 1624.16 11.15 1916.05 704.23 236.98 1225.06 42.69 0.00 7248.61
Cess & Others 534.40 424.25 1383.84 0.00 0.00 13.24 0.00 0.00 0.00 2355.73
Sales Tax/VAT/CST 413.22 558.41 336.30 620.34 268.70 177.48 520.40 13.64 0.00 2908.49
Stowing Excise Duty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 457.54 457.54
Central Excise Duty 561.01 763.52 377.89 1233.68 363.67 222.91 685.87 18.94 0.00 4227.49
Clean Energy Cess 284.57 532.73 80.34 503.33 174.16 139.06 602.04 3.12 0.00 2319.35
Entry tax 36.12 76.15 0.00 0.00 0.00 29.54 71.95 0.14 0.00 213.90
Total 3317.61 3979.22 2189.52 4273.40 1510.76 819.21 3105.32 78.53 457.54 19731.11

4. COAL PRODUCTION

4.1 Raw coal production

Production of raw coal during 2012-13 was 452.211 Million Tonnes against 435.84 MillionTonnes produced in 2011-12. The company-wise production was given below:

(Figures in Million Tonnes)

Company

Coking

Non-Coking

Total
2012-13 2011-12 2012-13 2011-12 2012-13 2011-12
ECL 0.043 0.05 33.868 30.51 33.911 30.56
BCCL 26.970 27.25 4.243 2.96 31.213 30.21
CCL 16.156 15.55 31.905 32.45 48.061 48.00
NCL 0.000 0.00 70.021 66.40 70.021 66.40
WCL 0.330 0.32 41.957 42.79 42.287 43.11
SECL 0.157 0.19 118.062 113.65 118.219 113.84
MCL 0.000 0.00 107.894 103.12 107.894 103.12
NEC 0.000 0.00 0.605 0.60 0.605 0.60
CIL 43.656 43.36 408.555 392.48 452.211 435.84

4.2 Production from underground and opencast mines.

Coal production from underground mines in 2012-13 was 37.776 Million Tonnes compared to38.39 Million Tonnes in 2011-12. Production from Open cast mines during 2012-13 was 91.6 %of total raw coal production. Company-wise production was as under: (Figures in MillionTonnes)

Company

Underground Production

Opencast Production

Total Production

2012-13 2011-12 2012-13 2011-12 2012-13 2011-12
ECL 6.849 6.83 27.062 23.73 33.911 30.56
BCCL 3.153 3.48 28.060 26.73 31.213 30.21
CCL 1.024 1.09 47.037 46.91 48.061 48.00
NCL 0.000 0.00 70.021 66.40 70.021 66.40
WCL 8.200 8.39 34.087 34.72 42.287 43.11
SECL 16.869 16.41 101.350 97.43 118.219 113.84
MCL 1.678 2.19 106.216 100.93 107.894 103.12
NEC 0.003 0.00 0.602 0.60 0.605 0.60
CIL 37.776 38.39 414.435 397.45 452.211 435.84

4 .3 Hard Coke and Washed Coal (Coking) Production

Subsidiary-wise production of Hard coke and Washed coal (coking) was as under:

(Figures in Lakh Tonnes)

Company Hard Coke

Washed Coal (Coking)

2012-13 2011-12 2012-13 2011-12
ECL - - - -
BCCL 0.00 0.00 13.29 14.21
CCL - - 12.39 13.34
NCL - - - -
WCL - - 1.44 1.37
SECL - - - -
MCL - - - -
NEC - - - -
CIL 0.00 0.00 27.12 28.92

4.4 Overburden Removal

Overburden Removal during 2012-13 was 746.702 Million Cubic Metres against 735.14Million Cubic Metres achieved in 2011-12 recording a modest growth of 1.6%. Company-wisedetails of overburden removal was shown below: (Figures in Million Cubic Metres)

Company 2012-13 2011-12
ECL 76.448 60.31
BCCL 84.259 81.36
CCL 63.308 65.68
NCL 195.706 201.66
WCL 113.685 122.49
SECL 118.202 113.49
MCL 90.361 85.67
NEC 4.733 4.48
CIL 746.702 735.14

4.5 Future Outlook

In the terminal year (2016-17), as per XII Plan document, all India Coal demand growthrate has been envisaged at 7.09 % (980.50 Mt). Estimated coal demand for 2013-14 is 769.69Mt against 695 Mt of 2012-13.

In the terminal year of XII Plan (2016-17), the envisaged indigenous coal production is795.00 Mt. Out of this, CIL’s projection is 615 Mt (envisaged growth rate of 7.12 %),77 % share of total production. Out of this, 30.20% is to come from existing mines, 54.2 %from projects under implementation and15. 6 % from new projects to be taken up. On date,148 projects are under various stages of implementation. Further 126 new projects areidentified to be taken up in XII Plan, of which 58 are spill-over projects of X & XIPlans. Coal production target of CIL in 2013-14 is 482 Mt (growth of 6.59 %).

CIL has proposed a capital outlay of Rs. 25, 400 Cr in XII Plan plus an ad-hocprovision of Rs. 35, 000 Cr for acquisition of assets abroad and development of theacquired coal blocks in Mozambique. The capital expenditure for the year 2013-14 has beenenvisaged at Rs. 5000 Cr plus additional ad-hoc provision of Rs. 4000 Cr for acquisitionof coal assets abroad and development of coal block in Mozambique.

5. POPULATION OF EQUIPMENT

The population of major Opencast Equipment (Heavy Earth Moving Machinery) as on1.4.2013 and on 1.4.2012 alongwith its performance in terms of availability &utilisation expressed as percentage of CMPDIL norm was as under:

No. of Equipment

Indicated as % of CMPDIL Norm

Availability

Utilisation

Equipment As on 1.4.2013 As on 1.4.2012 2012-13 2011-12 2012-13 2011-12
Dragline 39 40 90 93 77 83
Shovel 715 727 88 89 77 75
Dumper 3109 3280 101 100 70 69
Dozer 972 987 91 93 58 58
Drill 707 664 99 99 65 71

6. CAPACITY UTILISATION

I. SYSTEM CAPACITY UTILIZATION

The overall system capacity utilization of CIL as a whole for the year 2012-13 was82.99 %. against 86.12 % during 2011-12. Subsidiary-wise details in terms of percentagevis-a-vis preceding year was as under:

Company Unit 2012-13 2011-12
ECL 118.97 129.90
BCCL 79.29 97.77
CCL 84.89 93.81
NCL 76.69 79.87
WCL % 93.41 102.49
SECL 80.52 79.87
MCL 75.61 69.90
NEC 66.34 56.29
Total CIL 82.99 86.12

7. PRODUCTIVITY: OUTPUT PER MANSHIFT (OMS)

Output per manshift (OMS) during 2012-13 improved to 5.32 Tonnes per manshift from 4.89Tonnes per manshift of previous year. Company-wise position was given in the followingtable: (Figures in Tonnes per Manshift)

Underground OMS

Opencast OMS

Overall OMS

Company 2012-13 2011-12 2012-13 2011-12 2012-13 2011-12
ECL 0.46 0.44 10.17 8.64 1.94 1.68
BCCL 0.35 0.36 8.31 6.57 2.50 2.20
CCL 0.33 0.32 6.09 5.79 4.42 4.19
NCL 0.00 0.00 13.65 13.55 13.65 13.55
WCL 1.10 1.08 5.03 4.22 2.97 2.70
SECL 1.37 1.30 19.26 19.32 6.72 6.44
MCL 0.97 1.24 21.34 20.38 16.07 15.36
NEC 0.01 0.01 3.77 3.79 1.30 1.23
CIL 0.77 0.75 11.48 10.40 5.32 4.89

8. PROJECT FORMULATION:

8.1 Preparation of Reports: As prioritized by subsidiary companies of Coal IndiaLimited, preparation of Project Reports (PR) for new/ expansion/re-organisation mines wascarried out during the year 2012-2013 for building additional coal production capacity tothe tune of 75 Mty. Revision of Project Reports/Cost Estimates for projects was also takenup along with new PRs. Thrust was given for preparation of reports of identified projectsof XII Plan.

During the year under review, CMPDI had prepared 271 reports which include 15Geological Reports, 29 Project Reports, 168 Other Reports (includes 17 Operational Plans)and 59 Draft Environment Management Plans (including 30 Form-I).

Expert Consultancy Services:

During 2012-2013, CIL’s subsidiary companies received expert consultancy servicesin the following fields:

> Environmental Management and Monitoring,

> Remote Sensing,

> Energy Audit (Diesel & Electrical),

> Diesel & Electrical Consumption Benchmarking

> Fixation of Diesel & Electrical Consumption norms of opencast andunderground mines, Physico-mechanical tests on rock and coal samples,

> Subsidence Studies,

> Strata Control,

> Non-Destructive Testing (NDT),

> Controlled Blasting & Vibration Studies and Explosive Utilisation

> Ventilation/Gas Survey of UG mines

> Mining Electronics

> Petrography and Cleat Study on coal samples

> Coal Core Processing & Analysis

> Washability tests

> OBR Survey

> Man Riding System

> Soil Erosion Study

> Slope Stability Study

> Effluent/Sewerage Treatment Plants

> Assessment of Normative Cost of sand stowing for stowing mines, etc.

8.2 Project Implementation

a) The following 2 coal projects, each costing Rs. 20 Crores & above, with ultimatecapacity of 2.86 Mty and completion cost of Rs. 111.54 crores, were completed during theyear 2012-13:

Sl No Cos Name of Projects Type Sanctioned Capacity (Mty) Completion Cost (Rs. Crores)
1 CCL Amlo OC OC 2.50 64.82
2 SECL Nawapara UG 0.36 46.72
TOTAL 2.86 111.54

b) 5 Coal projects, each costing Rs. 20 Crores & above, with an ultimatecapacity of 11.00 MTY and sanctioned capital of

Rs. 1456.21 Crs have started contributing production during the year 2012-13 :-

Sl No Cos Name of Projects Type Sanctioned Capacity (Mty) Sanctioned Capital (Rs. Crores)
1 ECL Sonepur Bazari Comb* OC 8.00 1055.05
2 SECL Vijay West UG 0.50 92.60
3 SECL Amlai OC Sec-B OC 1.50 198.58
4 WCL Junakunada OC 0.60 23.76
5 WCL Gauri Deep OC 0.40 86.22
TOTAL 11.00 1456.21

*Earlier 3.5 Mty project has been dovetailed into 8 Mty.

Status of Ongoing Projects :

There are 117 mining (excluding 13 projects of WCL approved subject to finalization ofCoal Supply Agreement on cost plus basis.) and 26 non-mining projects costing Rs. 20Crores and above, under implementation.

Out of 117 mining projects, 55 projects are running on schedule & 62 are delayed.Out of 26 non-mining projects, 21 are on schedule and 5 are delayed.

Status of ongoing projects costing Rs. 20 Crs. and above

Projects Total projects Projects on schedule Projects delayed
Mining 117 55 62
Non Mining 26 21 5
Total 143 76 67

Reasons of delay Mining Projects :

SL REASONS FOR DELAY NO OF PROJECTS
1 ADVERSE GEOMINING CONDITIONS 1
2 DELAY IN LAND ACQUISITION + R&R 42
3 MISCELLANEOUS 19
TOTAL 62

Non – mining Projects :

Out of 5 delayed non-mining projects, 4 are delayed due to land and rehabilitationproblems including forest problem and one project due to miscellaneous reason.

8.3 Projects Sanctioned (Costing Rs. 20 Crores & Above) :

(a) No Advance Action proposal was sanctioned during 2012-13.

(b) CIL Board had sanctioned 2 mining projects during 2012-13.

Sl No Cos Name of Projects Type Sanctioned Capacity Sanctioned Capital
(Mty) (Rs. Crores)
1 ECL Sonepur Bazari Comb OC 8.00 1055.05
2 WCL Chinchala- Chikalgaon Amalgamated OC 3.00 1176.13

(c) CIL had approved one Non-mining project during the year 2012-13.

Approving Board Subsidiary Name Sanctioned Capacity Sanctioned Capital
(Mty) (Rs. Crores)
CIL NCL Incr. CHP for Jayant Expn Project 5.00 129.48

(d) The Subsidiary Company Boards had sanctioned one mining project under itsdelegated power during the year 2012-13 :

Sl No Cos Name of Projects Type Sanctioned Capacity Sanctioned Capital
(Mty) (Rs. Crores)
1. WCL Sch of Diversion of Amb River Phase-IV of Umrer OC OC 2.00 64.11

(e) The subsidiary company Boards sanctioned following 8 Non-mining Projects underits delegated powers during 2012-13.

Sl Cos Non-Mining Projects Capital
(Rs. Cr)
1 MCL Construction of diversion road from check post of Lingaraj OCP to NH-200 for a length of 2.30 Km with 01 fly over and 01 ROB. 136.00
2 MCL Construction of ROB at the level crossing near Ghantpara Village at Talcher 37.50
3 MCL Widening of road from 2 lane to 4 lane from Bankibahal to Kanika Rly Sdg. Length-27km 162.00
4 MCL All CT roads in B-G area inside mine premises leading to siding having life more than 5 yrs to be constructed with concrete. 22.96
5 MCL All CT roads in Ib coalfield inside mine premises leading to siding having life more than 5 yrs to be constructed with concrete. 94.22
6 MCL All CT roads in Talcher CF inside mine premises leading to siding having life more than 5 yrs to be constructed with concrete. 179.00
7 MCL Construction of Bye Pass Rd from Lajkura Welcome Gate to Mine 3 Jn of 3.7 Km length 35.56
8 MCL Construction of concrete CT Road connecting Bundia Mine to NH 200 of 12.54 km length 135.29

8.4 Revised Project /Revised Cost Estimates

(a) No RPR/RCE was sanctioned by CIL during 2012-13.

(b) Subsidiary Company Boards sanctioned following RPRs/RCEs during 2012-13

Sl No Cos Name of Projects Type Sanctioned Capacity Sanctioned Capital
(Mty) (Rs. Crores)
1 CCL Kathara RCE OC 1.9 128.94
2 WCL Urdhan RCE OC 0.50 70.23
3 SECL Baroud Expn RCE OC 3.00 258.56
4 SECL Mahan RCE OC 0.36 148.72

9. CONSERVATION OF ENERGY

CIL’s subsidiaries have undertaken the following measures, interalia to conserveenergy:

• Awareness programmes are conducted at various levels for efficient use ofenergy.

• Energy Audit and Benchmarking are conducted for colliery and other loads.

• Installation of capacitor banks for improvement of power factor.

• Use of energy efficient lamps.

• Constructed strata bunker in underground mines to avoid idle running of beltconveyors, thereby saving energy.

• Installation of time switches for street lights.

• Use of higher voltage cables nearer to the coal face in mine to reduce energylosses.

• Installation of demand controller to control maximum demand.

• CIL coordinates with the subsidiaries and follow up their activities of energyconservation.

• Performance of subsidiaries are also discussed during co-ordination meeting.

• Project-wise specific consumption of diesel is monitored in comparison tobenchmarking by CMPDI for selected opencast projects (altogether 69 nos) of differentsubsidiaries of CIL.

In addition the following R&D projects are in progress :-

• CIL R&D endeavor under the project entitled "Green House Gas recoveryfrom coal mines and coal beds for conversion of energy (GHG2E)" has been taken up forcapacity building in new technology area of Coal Mine Methane (CMM) drainage and CO2 etc.Substantial data have been collected under this project from different coalfield areas foranalysis and simulation for evaluation of Green House Gas recovery technique.

• Another project entitled "Research and Development on efficient energymanagement pilot study and action plan" has recently been taken up with CIL R&Dfund. Preliminary studies including field studies / visit have started.

10. CAPITAL EXPENDITURE

Overall Capital Expenditure during 2012-13 was Rs. 2915.23 crores as against Rs.3727.17 crores in previous year, subsidiary-wise details of which are given below:-

Figures in Rs. Crores

Company 2012-13 2011-12
(BE) Actual (BE) Actual
ECL 450.00 202.94 400.00 332.96
BCCL 300.00 266.15 400.00 410.72
CCL 425.00 397.42 350.00 320.99
NCL 850.00 444.19 800.00 702.11
WCL 350.00 264.05 350.00 275.72
SECL 900.00 628.85 600.00 937.65
MCL 500.00 531.56 700.00 497.95
CMPDIL 30.00 6.94 30.00 16.30
NEC/CIL/Others 470.00 173.13 590.00 232.77
Total 4275.00 2915.23 4220.00 3727.17

11. CAPITAL STRUCTURE

The authorized share capital of the company as on 31.03.2013 was Rs. 8904.18 crores,distributed between Equity and Non-cumulative redeemable preference shares as under:

(i) 800,00,00,000 Equity Shares of Rs. 10/- each (Previous Year 800,00,00,000 Equity Shares of Rs. 10/- each) Rs. 8000.00 crores
(ii) 90,41,800 Non-cumulative 10% redeemable Preference Shares of Rs. 1000/- each (Previous Year 90,41,800 Non-cumulative 10% Redeemable Preference Shares of Rs. 1000/- each) Rs. 904.18 crores
Total Rs. 8904.18 crores

The paid-up equity capital as on 31.03.2013 was Rs. 6316.36 crores, which includes Rs.256.93 crores worth of Equity Shares issued in favour of the Government of India (GoI)towards value of land acquired.

Total investment by the Government of India in CIL and its subsidiaries are asfollows:-

Figures in Rs. Crores

As on 31.03.2013 As on 31.03.2012
Share Capital - Equity
Investment by GoI 5684.72 5684.72
Other Investors 631.64 631.64
Total 6316.36 6316.36

12. BORROWINGS

Aggregate borrowings of CIL has decreased to Rs. 1305.30 Crores in 2012-13 from Rs.1527.38 Crores in 2011-12, as detailed below.

Figures in Rs. Crores

As on 31.03.2013 As on 31.03.2012
Share Capital - Equity
Foreign Loans including deferred credits IBRD/JBIC 1136.23 1362.72
EDC Canada 160.35 155.63
Liebherr France SA., France 8.72 9.03
TOTAL 1305.30 1527.38

The debt servicing has been duly met.

13. INTERNATIONAL CO-OPERATION

International Co-operation.

Coal India is envisaged for foreign collaboration with a view to

• ? Bring in proven technologies and advanced management skills for running UG andOC mines and coal preparation.

• ? Exploration and exploitation of Coal Bed Methane?

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

The key areas identified include modern technologies for mass production in UG and OCmining, dealing with fire and subsidence, mine safety, coal preparation, extraction ofCoal Bed Methane, Coal Gasification, application of Geographical Information System,Satellite Surveillance, environmental control, overseas ventures in coal mining. Besidesthe above, emphasis is being given to transfer modern technologies and training.

CIL would endeavor to acquire suitable technology through international bidding.Bilateral cooperation may also be encouraged for locating availability of cost effectiveand latest technologies in the aforesaid areas, if the technology proves to be discerniblyadvantageous. CIL, therefore, has been following both these routes.

Following were the details of activities that took place with various countries during2012-13.

Indo-US Collaboration:

U.S –India Energy Dialogue was held on September 26th-28th, 2012. Coal IndiaLimited focused on the following areas concerning bilateral cooperation.

• The accomplishments in the area of cooperation for coal under India-US CoalWorking group have been delineated.

• Priorities for cooperation in the next three to four years in the field of 3DSeismic Survey, Planning of large capacity OC, Microwave remote sensing for coal minesafety, Mine rehabilitation and reclamation, Underground coal gasification (CG) areas,Coal Mine Methane (CMM) projects, Ventilation Air Methane (VAM), Coal Bed Methane (CBM)clearing house, Development of Shale gas .

• Inputs with regard to international trends, policies, technology and regulatoryissues.

A review meeting was held at Ministry of coal on 22.1.2013 to discuss the status ofongoing projects, work plan as per the last working group meeting held on 26-09-2012. Copyof the work plan has been circulated by MoC. CMPDIL has informed that US EPA grant ofCMM/CBM clearing house has been extended for a further period of three years.

Ongoing Projects

A) Development of Coal Preparation Plant Simulator.

B) Under Ground Coal Gasification

C) Cost Effective Technology for beneficiation and Recovery of fine coal

New Areas of Collaboration

i) Advanced Dry Coal Cleaning Technologies

ii) 3D seismic Surveys.

iii) Planning Large Capacity Opencast mines.

iv) Microwave Remote Sensing for Coal Mine Safety.

v) Mine Rehabilitation and Reclamation.

Indo-Russia collaboration:

India-Russia Joint Working Group (JWG) on Modernization and Industrial Cooperation hasbeen constituted under the India-Russia Inter –Governmental Commission Trade,Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC)/India-RussiaTrade and Investment Forum (IR-TIF). Ministry of Mines informed that under this JWG, firstmeeting of the Subgroup on mining was held on 27th August 2012. Ministry of minesforwarded the minutes of the meeting which envisaged cooperation in the field of coalmining industry as follows:

• The Russian team confirmed their readiness to expand scientific andtechnological cooperation with their Indian counterparts in:

1. New energy saving technologies of a coal mining in U/G and O/C.

2. Application of energy saving processes of coal processing.

3. Use of renewable and non-traditional energy in the coal industry

India-Russia Trade and Investment Forum was scheduled on April 12, 2013.CIL& CMPDILhas forwarded a note to MoC mentioning the potential areas of cooperation with Russianside. Potential areas are 3D-Seimic Survey, Strengthening capabilities for mine closerplanning and implementation, Cast Blasting and Advance Dragline application for largeOpencast Mines, Collaboration/Technology transfer for biological reclamation of degradedland due to mining operations, Development of Coal Mine Methane, Shale Gas, VAM, UCG,Extraction of steep seams at North Eastern Coalfields, Microwave Remote sensing for Coalmine safety etc.

Indo-Japan Collaboration

Meeting of Working Group under Indo-Japan Energy Dialogue was held on 7th August, 2012under the Chairmanship of Member (Energy). wherein it was decided to hold the next meetingfrom 9th to 10th Oct’12 in Japan. Sri S.K. Singh, Joint Secretary, Ministry of Coalwith Director (Technical), Coal India Limited, attended the meeting of Coal Working Groupand Indo-Japan Energy Dialogue held from 9th -10th October 2012 in Japan.

Indo-Czech Co-operation

Ministry of coal forwarded a draft protocol of 9th Session of Indo-Czech JEC in Pragueduring September, 2012. Para 36 of the draft protocol concerning Coal sector status is asunder.

"The two sides expressed satisfaction with the established contracts betweenIndian Coal industry and Czech manufacturers of mining equipment. It was appreciated thatthe visit of Shriprakash Jaiswal, Minister of Coal, Govt. of India and the delegation ofIndian Coal Sector to the Czech Republic in June 2011 and the seminar of coal industryheld in Prague on this occasion created good impression for further cooperation."

Co-operation with Ukraine

MoC vide letter dated 7th May 2012 forwarded a copy of letter dated 24th April 2012fromMinistry of External Affairs, regarding Fourth Session of Indo-UkrainianInter-Governmental Commission on Trade, Economic, Scientific, Technological, Industrialand Cultural Cooperation and requested CIL to forward a note for discussion in theaforesaid meeting. MoC has forwarded a copy of minutes on 27/06/2012 of the fourth Sessionof the Indo-Ukrainian Inter-Governmental Commission.

14. WORLD BANK FINANCED PROJECTS FOR 2012-13

The net utilization of loan distribution by IBRD and JBIC is to the tune of USD 245.73million and JPY 28440.82 million respectively, for procurement of equipment and technicalassistance under Coal Sector Rehabilitation Project (CSRP). The disbursement for fundingof procurement by IBRD and JBIC was completed in December 2003. As such, there is nodrawals of loan since January 2004.

With the repayment of loan of USD 138.83 million to IBRD and JPY 19,026.87 million toJBIC till 2012-13, the total CSRP loan as on 31st March’2013 stands at USD 106.90million (equivalent to Rs. 585.80 Crs.) on account of IBRD and JPY 9,413.95 million(equivalent to Rs. 550.43 Crs.) on account of JBIC.

Thus a total amount of Rs. 1136.23 Crs. is lying outstanding under CSRP Loan as on 31stMarch’2013.

COAL VIDESH DIVISION

Initiatives undertaken for acquisition and development of coal assets abroad

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

Prospecting Licenses for coal having nos 3450L & 3451L, covering a total area of224 Square kilometers were granted to CIAL, a wholly owned subsidiary of CIL in Mozambiquein 2009 which is valid till August 2014.

CIAL became operational in February 2012 by setting up of an office in the city of Tetein Mozambique with deputation of 4 members team of senior officers. Various activitiesrelated to exploration of coal blocks have been initiated, which are as follows:

1. Environmental clearance from Govt. of Mozambique for carrying out exploratorydrilling has been obtained in July 2012.

2. Geological mapping for the entire allotted coal block by engaging a consultantthrough global tendering has been completed.

3. Drilling contract for carrying out initial 10,000 mtrs of core drilling was awardedin Nov 2012. As on 31st March 2013 5,100 mtrs had been drilled.

4. Additional 30,000 mtrs of drilling in the allotted coal blocks has been awarded inJune’13.

5. For demarcation of the concession area and location of the proposed exploratoryboreholes, surveyors from CMPDI were engaged in Nov-Dec 2012. Major part of the work hassince been completed.

(B) Global Expression of Interest inviting proposals related to acquisition of overseascoal assets

Pursuant to guidelines of Govt. of India for acquiring raw material assets abroad, anotice inviting proposal offering overseas coal assets to CIL was floated on 27th February2013. Number of proposals have been received and are being evaluated on the basis of theirmarketing potential.

(C) MOA with parastatal of Limpopo province of South Africa.

Premier Provincial Govt. of Limpopo, Republic of South Africa, has written to Chairman,CIL reiterating interest for undertaking joint business initiatives between Govt. ofLimpopo and CIL for exploration and development of coal resources in Limpopo Province. AMemorandum of Understanding (MoU) between CIL and Provincial Government of Limpopo,Republic of South Africa for exploration and development of coal assets in Limpopoprovince, South Africa was signed on 26th Sept. 2011 in New Delhi. As a follow up action,a Memorandum of Agreement (MoA) to be signed between CIL and the parastatal agenciesnominated by the provincial Govt. Limpopo, has been prepared and is under theconsideration.

(D) Setting up of a wholly owned subsidiary of CIL in South Africa.

To implement the Memorandum of Understanding, CIL has decided to register a whollyowned subsidiary(WOS) in South Africa which shall in turn form a joint venture companywith organizations owned by Provincial Govt. of Limpopo for undertaking all relatedactivities covered under MoU.

CIL had awarded this job to a consultant through competitive bidding in February 2013.The draft Memorandum of Incorporation prepared by the consultant is under the process ofapproval.

15. MASTER PLAN FOR DEALING WITH FIRE,SUBSIDENCE AND REHABILITATION

The Master Plan for dealing with fire, subsidence and rehabilitation in the lease holdof BCCL and ECL was approved on 12th Aug’2009 by Govt. of India with an estimatedinvestment of Rs. 7112.11 Crs. for Jharia Coalfields and Rs. 2661.73 for RaniganjCoalfields. Implementation period has been delineated as 10 years.

• Implementation of Master Plan is being monitored by High Powered CentralCommittee at regular intervals. Advisor (Projects), Ministry of Coal took the last meetingon 23.04.2013.

Master Plan dealing with Fire, Subsidence and rehabilitation in the Leasehold ofEastern Coalfields Limited.

Asansol Durgapur Development Authority (ADDA), a state Govt. organization has beenidentified as implementing agency for Rehabilitation of Non-ECL houses. Contingencycharges @3% & Supervision charges @5% (total 8%) are to be paid to ADDA forimplementation, which is included in the assessed capital requirements.

The salient features of approved master Plan are as follows:?

CELLPADDING="2">CELLPADDING="2">DIR="LTR">
• No. of unstable sites proposed for Rehabilitation ? : 139 nos+ 2(later added as per recommendation of DGMS)= 141
• No.of houses/ families assessed for Rehabilitation ? : 33196 nos. (18136 nos. in Phase I & 15060 nos. in Phase II)
• Requirement of Land assessed for Rehabilitation ? : 896.29 Ha.
• No. of Locations identified for Diversion of Infrastructure ? : 7(Railway lines, Roads & IOC pipe lines.)
• Capital Requirement estimated for Rehabilitation : Rs. 2610.10 Crores. (Rs. 1424.84 Crs & Rs. 1185.26 respectively in Phase I & II)
• Capital Requirement estimated for Diversion projects ? : Rs. 11.35 Crores. (Equally divided in 5 years of Phase I)
• Capital Requirement estimated for Fire schemes ? : Rs. 40.28 Crores. (Rs. Equally divided in 5 years of Phase I)
• Total Capital Requirement assessed : Rs. 2661.73 Crores. (Include Phase I & II, each of 5 years.)

Master Plan dealing with Fire, Subsidence and rehabilitation in the Leasehold of BharatCoking Coal Limited.

Jharia Rehabilitation & Development Authority (JRDA), a state Govt. organizationhas been identified as implementing agency for Rehabilitation of Non-BCCL houses.Contingency charges @3% & Supervision charges @5% (total 8%) are to be paid to JRDAfor implementation, which is included in the assessed capital requirements.

• No of fire areas for which action plan has been proposed :- 67 nos.
• No. of houses to be vacated :- 98314 nos.
• No. of houses proposed to be reconstructed :- 79159 nos. ( 45795 nos. in Phase-I, 33364 nos. in Phase-II)
• Requirement of Land assessed for Rehabilitation :- 1504.99 Ha
• Capital Requirement estimated for Rehabilitation :- Rs. 4780.60 Crs.
• Capital Requirement estimated for Diversion projects :- Rs. 20 Crs.(Railway line, Road)
• Capital Requirement estimated for Fire schemes :- Rs. 2311.50 Crs.
• Total Capital Requirement assessed :- Rs. 7112.11 Crs.

The R & R Package for Non-ECL and Non-BCCL endangered people are:

(a) Cash compensation equivalent to assessed cost of homestead land & other superstructure/ infrastructure within the homestead land. In addition, a plot of 100 Sq.m. freeof cost at resettlement site having all amenities and infrastructural facilities will beprovided. Extra plot if required may be provided on payment basis upto a maximum limit ofowned land at unstable site, or in lieu a constructed flat of 40 Sq.m. as super built uparea having two rooms, a kitchen and a toilet in a triple storied building will beprovided. In such case, no other cash compensation shall be paid.

(b) A cash compensation in lieu of free plot along with the entitled compensation areto be offered if a house owner refuses to be resettled at the proposed township.

(c) No cash compensation is to be paid to encroacher/ settlers. Head of each suchfamily will be provided a constructed flat of 27 Sq.m. as super built up area.

(d) Head of each family will be paid a minimum wage for 250 days per year for two yearsfor income generation due to displacement/ shifting.

(e) A shifting allowance of Rs. 10, 000/- will be paid to each family to be resettledat new townships.

(f) No employment shall be offered for any rehabilitation under the Master Plan.

• The Major Implementation Activities Proposed to be completed in Phase I & IIare:

i. Demographic Survey of affected people, Valuation of homestead land & houseincluding all structures/ infrastructures in that land, Preparation/ Distribution ofphoto-identity cards etc.

ii. Identification & Acquisition of land for proposed townships.

iii. Tendering & Awarding of work for land survey and township planning.

iv. Survey of land.

v. Township planning.

vi. Tendering & Award of work for townships.

vii. Construction of approach road, Development of land & infrastructuralfacilities, Demarcation of plots, construction of flats and providing amenities likeschools, bank, postoffice, hospital,community centre, play ground, shopping centre etc.

viii. Allotment of plots/ flats for resettlement.

ix. Shifting of people from unstable sites.(Rehabilitation & Resettlement)

x. Demolition of super structure/ infrastructures at unstable sites.

xi. Fire mitigation.

xii. Diversion of surface infrastuctures like Rail , Road, IOC pipeline etc.

Action taken for implementation of Master Plan :

A. For Raniganj Coalfields

a) Status of Demographic Survey:

ADDA has issued work order for all the 142 unstable sites to M/S XISS, Ranchi. Out ofwhich M/S XISS has completed 120 sites & work is going on in 10 sites. TotalDemographic Survey completed (till 31.03.2013) is 43171.

b) Land acquisition status:

Acquisition of land in Bonjemari (1300 acres) and Gourandi (2300 acres) is underprogress by W.B Govt.

c) Diversion of surface infrastructures (Rail, Roads & IOC Pipelines etc):

The proposal for appointing CIMFR Dhanbad, for (1) Geo-technical Survey of the area tofind out the total void below the Rly line and (ii) Stability analysis of the workings andprediction of any surface subsidence based on detail geo-technical investigation andanalytical method has been approved by ECL Board of Directors. The above work has beenawarded to CIMFR, Dhanbad on 08.11.2012 for Andal- Sainthia Railway Line of PandaveswarArea. The work of stability test has been conducted by CIMFR in the recent past.Representatives of DRM Eastern Railway, Asansol, Officials of DGMS were present during thestability test conducted by M/s CIMFR on 11.03.2013. CIMFR has informed that the reportwill be submitted shortly.

For preparation of Feasibility Study and Detail Project Report for diversion ofAndal-Sitarampur Railway line of Salanpur Area, has been awarded to M/S RITES Ltd.

For diversion of IOCL pipe line, a preliminary survey has been conducted by NIRM andthe final Survey for pipe line diversion work will commence shortly.

B. For Jharia Coalfields :

a) Demographic (socio-economic) survey:

CIMFR and ISM started the job of demographic / socio-economic survey of fire affected /subsidence prone areas for identification of families living in the areas. Out of total595 nos. of fire affected / subsidence prone sites / areas to be surveyed, CIMFR and ISMhave completed demographic / socio-economic survey of 348 sites in which 37367 familieshave been identified.

b) Status of Land acquisition by JRDA for rehabilitation sites:

Proposal for acquisition of 1038.88 acres of Raiyti land sent to DLAO, Dhanbad by JRDA.

Proposal for acquisition of 309.13 acres of Government land was sent to Addl.Collector, Dhanbad.

440 acres of Raiyti and Govt. land has been surveyed for acquisition / transfer byJRDA.

Delivery of possession for mouza Lipania (120.82 acres Raiyati land) situated nearBelgoria for construction of houses for non-BCCL families and Dhokra (7.99 Acres Raiyatiand 1.35 acres Govt. land) for construction of Ring Road has been taken over by JRDA fromDLAO, Dhanbad on 28.02.2013.

Transfer of land to JRDA by BCCL-86.44 acres of vacant land in Bhuli Township and849.68 acres of non-coal bearing land in and around Belgoria Township belonging to BCCLhave been identified for developing new Townships by JRDA. NOC for transferring the landto JRDA has been given by MoC.

c) Diversion of Road from fire affected areas:

Repairing / widening of Mahuda-Topchanchi road as a short-term measure duly prepared byRITES, has been approved by Secretary, Road Construction Deptt. (RCD) Govt. of Jharkhand.RCD has finished 37% of job.

DPR for construction of road from Joraphatak to Dhokra, for connectivity of BelgoriaTownship was forwarded to RCD, Govt. of Jharkhand by JRDA for technical sanction. Work hasbeen awarded by RCD, Dhanbad, which is likely to start shortly.

d) Diversion of Rail from fire affected areas:

RITES had submitted discussion plan on the above subject to JRDA. BCCL’sobservations had been sent to JRDA. In this regard, E.C. Railway, Hazipur and S.E.Railway, Kolkata had also forwarded the brief report along with their comments to RailwayBoard, New Delhi.

On the other hand, directions have been issued to RITES Ltd. by JRDA for traffic surveyand data collection to initiate feasibility study regarding Diversion of Railway linesfrom fire affected and subsidence prone areas.

e) Utility Services from fire affected areas:

Feasibility Report for diversion of utility service of Jharia Coalfield has beensubmitted by RITES Limited on 30.03.2013.

f) Service Building & Welfare Programme:

Construction of service buildings like (Market Complex, Bank, Post Office, Computer andSewing Training Centre, Masjid, Temple etc.) are in different stages.

g) Status of BCCL & Non-BCCL house schemes as per Master plan:

Construction of 344 houses at Bhuli, Bhimkanali, Nichitpur and Katras Coal Dump intriple storied blocks has been completed in non-coal bearing zone. 1152 triple storiedquarters [96 Blocks each of 12 units] are under construction at various places in non-coalbearing zone of Kusunda, Katras, and Lodna.

BCCL Board has approved construction of 4080 triple storied quarters / houses [340Blocks each of 12 units].

Non-BCCL houses [54159 nos]:

2352 houses have been constructed in Belgoria rehabilitation Township "JhariaVihar"

1162 families have shifted till 31-03-2013.

1117 affected families were given Rs. 10000/- each as shifting allowance.

Status of Fire Schemes:

11 fire schemes have been approved by Board and implemented, out of which 4 schemeshave been completed and rest are at different stages of execution.

Three more fire schemes are under preparation at CMPDIL.

BCCL approached NRSA for conducting fresh survey of fires and subsidence by remotesensing methods in January 2013. NRSA is preparing a proposal for the purpose and the workwould be started soon.

Disbursement of fund by CIL

• BCCL till March, 2013 : Rs. 218.73 Crores.
• ECL till March’ 2013 : Rs. 160.64 Crores.

16. ENVIRONMENTAL MANAGEMENT

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

EIA/EMPs for all the new and expansion projects as per EIA Notification SO 1533 dated14th September, 2006 of MoEF are prepared for peak and normative capacities andenvironmental clearance is obtained. EIA/EMPs for mines requiring renewal of lease arealso prepared for environmental clearance. EIA/EMPs on cluster basis for smaller mines ofECL and BCCL are also being prepared for environmental clearance. During the year, CMPDIhas prepared 30 Form-I and formulated 29 Draft EIA/EMPs. Environmental clearances werealso obtained for 30 projects from MoEF which includes 3 washeries.

16.2 Pollution Control Measures and their Efficacy

Measures are being undertaken to ensure that mining and coal beneficiation operationshave minimum impact on the surrounding air quality, water quality, noise level and soilquality, hydro-geology, land use pattern and socio-economic profile of the nearbypopulation. The mitigation measures include dust suppression in mines through fixed andmobile water sprinklers. Effluent treatment facilities for mine effluent, workshopeffluent and CHP effluent like oil & grease traps, sedimentation ponds and facilitiesfor storage of treated water and its reuse have been provided for all the major projects.Domestic wastewater treatment facilities have also been provided to deal with the domesticeffluent. The level of pollutants is being monitored on routine basis to ascertain theefficacy of the pollution control measures being taken in the projects. Additionalremedial measures are undertaken, if required, to keep the pollutant level within thelimits prescribed by regulatory bodies. Technical and biological reclamation of mined outareas and the external overburden dumps are being undertaken by planting native species ofplants for restoring the ecology.

The level of pollutants is being monitored regularly as per the statutory guidelines toascertain the efficacy of the pollution control measures and for taking corrective actionsas required.

16.3 ISO:14001 System

Actions like implementation, certification and re-certification of different units ofCIL against ISO 14001 is continuing. During the year 2012-13, 16 units (14 Opencastprojects, 1 Washery and 1 Hospital) have got re-certification for ISO 14001 aftersuccessful completion of three years validity period. 81 units of CIL got certificationwhich includes opencast projects, underground mines, washeries, workshops and hospitalstill the year 2012-13. In addition, Northern Coalfields Limited (NCL), as a company, hasalso got ISO 14001 certification.

16.4 Monitoring of Mines through Remote Sensing

CMPDI, through, Coal India Limited has introduced Satellite Surveillance System formonitoring of backfilling & reclamation of land for all the opencast mines. Landreclamation monitoring of 50 nos. of opencast projects having more than 5 million cu.m.production capacity (coal+OB) and 40 opencast projects having less than 5 million cu.m.production capacity (coal+OB) based on high resolution satellite data has been completedduring the year 2012-13.

Land use / vegetation cover mapping of 6 coalfields viz. Karanpura, West Bokaro, EastBokaro, Bander, Singrauli and Korba based on satellite data has been completed forcreating Geo-Environmental database of the coalfields for assessing the regional impact ofmining on land use / vegetation cover at a regular interval of three years.

16.5 R&R Policy of CIL,2012

The Resettlement & Rehabilitation Policy, 2012 has been finalized based onthe deliberations of Inter – Ministerial Committee, deliberations of CMDs meet andapproved by CIL Board in its 279th meeting held on 12th.and 13th March, 2012. The same hasbeen released by the Honb’le Minister of Coal, Govt. of India on 4th. April,2012 in aPress conference at New Delhi.

The revised R&R Policy of CIL, 2012 has provided multiple options to the landlosers and more flexibility to the Board of Subsidiary Companies to meet unique R&Rproblems prevailing in the subsidiary companies. This will facilitate faster landacquisition.

16.6 Implementation of decision of the High Powered Committee

During this year, wages and social security of contractors’ workers were jointlydeliberated and finalized based on the recommendations of High Powered Committeeconsisting of the representatives of Central Trade Unions. This committee was constitutedin accordance with the decision taken in the meeting with Central Trade Unions held on16.04.2010 in presence of then Hon’ble Minister of State (I/C) & SPI and inpursuant of letter dated 28.03.2010 of Ministry of Coal.

The basic rate of wages of different categories of contractors’ workers engaged inmining activities w.e.f 01/01/2013 is provided bellow:

Categories of employee Basic rate (Per Day)
Unskilled Rs. 464.00
Semi-Skilled/Unskilled Supervisory Rs. 494.00
Skilled Rs. 524.00
Highly skilled Rs. 554.00

16.7 Mine Closure Plans

In terms of the guidelines issued by Ministry of Coal (MoC), CMPDI prepared 132 mineclosure plans for CIL mines during the year. Quick comments on 44 mine closure plans forcoal blocks sent by MoC were also prepared.

16.8 Research & Development

The R&D projects in the emerging areas are continuously undertaken. One researchproject viz. Fly ash characterization for mine void reclamation has been completed.

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

17.1 Collaborative development of CBM prospects in Jharia & Raniganj coalfields bythe consortium of CIL & ONGC

In terms of Govt. of India CBM Policy, consortium of CIL and ONGC has been allotted 2blocks, one each in Jharia and Raniganj coalfields for commercial development of coalbedmethane. These projects are being implemented by CMPDI on behalf of CIL.

17.1.1 Jharia CBM Block

The Govt. of Jharkhand granted Petroleum Exploration License (PEL) to the consortium ofCIL-ONGC in August 2003 for Jharia CBM block after which the work as detailed in theMinimum Work Programme was taken up.

CMPDI has carried out deep slimhole drilling (depth range 1000 to 1400m) wherein, CBMrelated parametric data were generated. A report based on this drilling and otheravailable drilling and gas related data has been prepared by CMPDI and submitted to ONGCwhich facilitated ONGC to drill exploratory and pilot wells.

Consequent to the completion of envisaged work in the exploratory and pilot phases,consortium of CIL & ONGC has submitted a Development Plan of the block having abudgetary outlay of Rs. 1137 crore for approval of the Government in August 2012. Thedevelopment plan has been examined by a committee of CMPDI officials which found theproject to be economically viable and the same was forwarded to CIL in March 2013 fortaking a considered view regarding increasing stakes of CIL from 10 to 26% in terms ofprovisions of the Operating Agreement.

The consortium will undertake necessary developmental work after the approval of thedevelopment plan by the Government.

17.1.2 Raniganj CBM Block

The Govt. of West Bengal granted Petroleum Exploration License (PEL) for Raniganj CBMblock in April 2004 after which the work as detailed in the Minimum Work Programme wastaken up.

CMPDI has carried out deep slimhole drilling (depth range 800 to 1100m) wherein, CBMrelated parametric data were generated. A report based on this drilling and otheravailable drilling and gas related data has been prepared by CMPDI and submitted to ONGCwhich facilitated ONGC to drill exploratory and pilot wells.

Consequent to the completion of envisaged work in the exploratory and pilot phases,consortium of CIL & ONGC has submitted a Development Plan of the block in October 2012having a budgetary outlay of Rs. 957 crore for approval of the Government. The developmentplan has been examined by a committee of CMPDI officials which found the project to beeconomically viable and the same was forwarded to CIL in March 2013 for taking aconsidered view regarding retaining stakes of CIL upto 26% in terms of provisions of theOperating Agreement.

The consortium will undertake necessary developmental work after the approval of theDevelopment Plan by the Government.

17.2 CBM and Shale gas related studies under Promotional Exploration during XII Plan

17.2.1 CBM related studies: CMPDI is carrying out studies related to"Assessment of Coalbed Methane Gas-in-Place Resource of Indian Coalfields/Lignitefields" through boreholes being drilled under promotional exploration (XII Planperiod) under PRE funding of Ministry of Coal. This study will enlarge the CBM resourcebase of the country and facilitate delineation of more blocks for CBM development. A totalof 60 boreholes (40 by CMPDI and 20 by GSI) are to be taken up for studies during the XIIPlan Period with a total plan expenditure of Rs. 13.46 crore.

During 2012-13, 8 boreholes located in different coal/lignite fields were taken up forstudies by CMPDI and samples collected for desorption and other tests.

Three reports based on CBM related studies carried out during XI Plan viz."Assessment of CBM Gas-in-Place Resource in Sukli, Kapri block of Katol Coalfield andMahanadi block of Talcher Coalfield" were submitted during 2012-13. Since April 2007,eleven reports have been submitted.

17.2.2 Shale gas related studies: CMPDI is carrying out studies related to"Assessment of Shale Gas-in-Place Resource of Indian Coalfields/Lignite fields"through boreholes being drilled under promotional exploration (XII Plan period) under PREfunding of Ministry of Coal. This study will create the data for assessment of shale gaspotentiality and facilitate delineation of more blocks for Shale Gas development. A totalof 25 boreholes are to be taken up for studies during the XII Plan Period with a totalplan expenditure of Rs. 7.75 crore. During 2012-13, 4 boreholes were taken up for shalegas related studies.

17.3 Commercial development of Coal Mine Methane (CMM)

Commercial development of CMM is a priority area both at the Govt. and Coal Industrylevel. Successful implementation of the Demonstration Project at Moonidih mine of BCCL hasalready proved the efficacy of the process and five suitable areas within CIL miningleasehold areas were identified. Further, MoC has made CMPDI the Nodal Agency fordevelopment of CMM in India.

Under the aforesaid background, actions for commercial development were initiated andCMPDI, on behalf of CIL, had floated Global Tender for selection of suitable developer forcommercial development of CMM in 5 identified blocks (3 in BCCL and 2 in CCL) in April2011. However, the tender was cancelled in view of observations of MoP&NG on certainissues. The matter was resolved in a meeting held between Adviser, MoC and Secretary,MoP&NG in August 2012 and a formal approval from the Govt. is awaited regardingoperationalization of CMM development.

The matter was taken up with CCL and BCCL and consent of both the companies has beenreceived.

17.4 Assessment of CMM potential related to large opencast mines

CMPDI carried out ‘Assessment of CMM Potentiality in Dip-side area of MoherSub-basin, NCL, Singrauli and CMM Potentiality in Dip-side area of Korba Coalfield,SECL’ and further action for commercial development will be undertaken after theissue related to operationalization between MoC and Mop&NG is resolved.

17.5 Activities taken up by CBM Lab

CBM Lab has carried out the field desorption studies at the borehole sites in 8boreholes during 2012-13 and has generated total gas content and gas composition data. Inaddition, studies have been carried out in 4 boreholes for assessment of shale gaspotentiality.

CBM lab has also carried out Adsorption Isotherm (AI) test on 46 numbers of samplesthrough in-house facility created in CMPDI in addition to carrying out Total OrganicCarbon (TOC) analysis on 16 samples. Analysis of 928 mine air samples, received fromdifferent collieries of CCL, was also carried out and the results have been submitted.

17.6 CMM/CBM Clearinghouse in India

A CMM/CBM clearinghouse was established at CMPDI, Ranchi under the aegis of Ministry ofCoal and US EPA on 17th Nov’08. The clearinghouse is functioning as the nodal agencyfor collection and sharing of information on CMM/CBM related data of the country and helpin 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. onbehalf of Ministry of Coal and US EPA. The website of India Clearinghouse, http://www.cmmclearinghouse.cmpdi.co.in, encompasses all the important information viz. EOInotifications, newsletters in addition to information regarding opportunities existing fordevelopment of CMM, VAM, etc.

The initial 3 years term for US EPA grant of clearinghouse had been completed inNov.’11. Ministry of Coal has approved extension of term for further periods of 3years on 31st August 2012 and US EPA has also given its consent for extension of terms ofthe clearinghouse.

17.6.1 Participation of CMPDI officials in GMI EXPO-13:

A high level CMPDI team comprising of CMD, CMPDI, Director (T/RD&T) and GM (CBM)along with Adviser (Projects), Ministry of Coal participated in the Expo-13 and othermeetings of GMI as Government of India delegates from 12th to 15th March 2013. Governmentof India booth was also managed by CMPDI officials wherein posters highlighting theGovernment initiative in methane mitigation were showcased in addition to highlighting theopportunities of commercial development existing within CIL command areas. CMPDI team alsopresented the opportunities and challenges existing in the field of development of CMM.

18. Commercial development of Underground Coal Gasification (UCG) within CIL commandarea

CMPDI had floated tenders for commercial development of UCG in Kaitha Block (under CCLcommand area) and Thesgora ‘C’ Block (under WCL command area). The tendersreceived very good response and the offers were evaluated by a duly constituted TenderCommittee of CMPDI having members from coal producing companies and recommendation sent toCIL. The matter was deliberated in the meeting of Functional Directors of CIL held inJuly/August, 2011 wherein, CMPDI was advised for re-tendering the same after revisitingthe technical evaluation criteria.

Draft TSD was prepared and sent to CIL for approval. The draft TSD was deliberated inthe meeting of FDs of CIL in January 2013 wherein it was desired that the representativeof CMPDI would be invited in the meeting of FDs of CIL for discussion on the matter.

19. Delineation and preparation of Data-dossiers for DGH

19.1 Preparation of Data Dossiers for CBM Round V

DGH had awarded the consultancy work of ‘delineation and preparation of DataDossiers on prospective CBM blocks in Cambay basin, Singrauli and Johilla Coalfields forCBM Round V’ to CMPDI in May 2011. Draft Data Dossiers on the identified 8 blockswere submitted to DGH in March, 2012.

The reports were initially deliberated between CMPDI and DGH officials and werefinalized after the visit of a high level team of DGH to CMPDI in mid February 2013. Thefinal reports on the blocks have been prepared by CMPDI and submitted in March 2013.

19.2 Delineation and preparation of Data-dossiers for six prospective Shale gas blockswithin Gondwana Basin

DGH has assigned the consultancy work of ‘delineation and preparation of DataDossiers for six prospective Shale Gas blocks within Gondwana Basin’ to CMPDI in May,2011. Draft Data Dossiers on Raniganj, Jharia, Bokaro, South Karanpura, North Karanpuraand Sohagpur basins were submitted in March 2012.

The reports were deliberated between CMPDI and DGH officials and the reports werefinalized after the visit of a high level team of DGH in mid February 2013. The finalreports have been submitted by CMPDI in March 2013.

20. R&D and S&T Projects

20.1 EU funded Research Project

CMPDI is one of the participating organizations along with IIT Kharagpur from India inthe multi-national/multi-organization collaborative project titled "Greenhouse GasRecovery from Coal Mines and unminable Coal beds and conservation of Energy(GHG2E)"which has been approved under the partial funding scheme of European Union ResearchCommission. The balance fund has been provided under CIL R&D scheme.

The CMPDI Project team attended the review meeting on progress of the work at ImperialCollege, London (UK) on 5th & 6th July, 2012 wherein UNECE observer was also present.The work carried out by CMPDI was appreciated in the meeting. The assigned CMPDI workpackages were submitted to Imperial College of Mining in January 2013 as per schedule.

20.2 CIL R&D Project "Assessment of prospect of shale gas in Gondwana basinwith specific reference to CIL areas"

Work on CIL R&D project "Assessment of prospects of shale gas in Gondwanabasin with special reference to CIL areas" is in progress and collection of shalesamples for qualitative analysis has been taken up and few shale samples have been sent tolab for Shale gas specific tests. In the meantime, facility for taking up Total OrganicCarbon (TOC) Analysis has been created in the CMPDI lab under this project.

In addition, areas have been demarcated for assessing the prospectivity of shale gaswithin BCCL and CCL areas.

20.3 S&T Project on "Shale gas potentiality evaluation of Damodar basin ofIndia"

A new S&T project regarding Shale gas potentiality of Damodar basin of India at aninvestment of Rs. 16.87 crore under S&T plan of Ministry of Coal (MoC) has beenapproved. The basic objective of the project is to evaluate Damodar basin for their shalegas potentiality through integrated geophysical, geological, geochemical andpetro-physical investigations.

NGRI team visited CMPDI for discussion and collected shale samples from Kapuria, Singraand Mohuda blocks of Jharia Coalfield for studies of TOC, Rock Eval Pyrolysis, Carbonisotopic signatures and Biomarker. A team of NGRI visited CMPDI during March 2013 andexplored the possibility of taking up 3D seismic survey in identified areas.

21. Geological Exploration & Drilling

CMPDI continued to carry out coal exploration activities in 2012-13 also, mainly in CILand Non-CIL/Captive Mining blocks. Exploration in CIL blocks was taken up to cater to theneeds of project planning/production support of subsidiaries of CIL whereas exploration inNon-CIL/Captive Mining blocks was undertaken to facilitate allotment of coal blocks toprospective entrepreneurs. CMPDI has substantially improved the capacity of drillingduring XI and XII plan periods. As against the achievement of 2.09 lakh metre in 2007-08,CMPDI has achieved 4.98 lakh metre in 2011-12 and 5.63 lakh metre in 2012-13, throughdepartmental resources and outsourcing, registering a growth of 13% over previous year.For capacity expansion through modernization of departmental drills, 31 new Mechanicaldrills and 4 Hi-tech Hydrostatic drills have been procured, out of which 6 are deployed asadditional drills and 29 as replacement drills. Supply order for 5 more Mechanical drillshas been placed. CMPDI has also replaced 38 mud pumps and 46 trucks in the last fouryears. To meet the increasing work load, recruitment of Geologists/Mechanical Engineerswas continued and 147 Geologist, 14 Geophysicist and 27 Mechanical Engineers were inductedthrough campus interview/open examination since 2008-09. Shortage of non-executive staffis being met through transfer of 246 employees from other subsidiaries of CIL.

Under outsourcing, the work of 36 blocks involving 13.66 lakh metre of drilling wasawarded since 2008-09, out of which drilling has been concluded in 15 blocks. A long termMoU (5 Years), involving 1 lakh metre/annum of drilling, was also signed with MECL. Theannual limit has further been enhanced to 1.5 lakh metres from 2012-13. To fulfill theenhanced requirement of coal core analysis due to increase in drilling, the capacityexpansion of CMPDI & CIMFR labs has been taken up and MoU between CMPDI (on behalf ofCoal India Ltd.) and CSIR for "Quality Evaluation of coal explored from differentregions of India" was signed.

21.1 Drilling Performance in 2012-13

CMPDI deployed its departmental resources for exploration of CIL/ Non-CIL blockswhereas State Govts. of MP and Orissa deployed resources in CIL blocks only. Besides, fiveother contractual agencies have also deployed resources for detailed drilling/ explorationin CIL/Non-CIL blocks. 115 to 140 drills were deployed in 2012-13 out of which 53 weredepartmental drills. CMPDI continued the technical supervision of Promotional Explorationwork undertaken by MECL in Coal Sector (CIL & SCCL areas) and monitored the work ofGSI for Promotional Exploration in Coal Sector (CIL area) on behalf of MoC.

In 2012-13, CMPDI and its contractual agencies took up exploratory drilling in 102blocks/mines of 22 coalfields situated in 6 States. These coalfields are Raniganj (10blocks/mines), Brahmani (1), Jharia (4), West Bokaro (2), East Bokaro (1), Ramgarh (2),South Karanpura (6), North Karanpura (4), Kamptee (7), Nand-Bander (3), Wardha Valley (5),Katol Basin (1), Sohagpur (7), Johilla (1), Mand Raigarh (12), Korba (3), Bisrampur (4),Sonhat (1), Tatapani-Ramkola (3), Singrauli (7), Talcher (12) and Ib Valley (6). Out of102 blocks/mines, 35 were Non-CIL/Captive blocks and 67 CIL blocks/mines. Departmentaldrills of CMPDI took up exploratory drilling in 63 blocks/mines whereas contractualagencies drilled in 39 blocks/mines.

Under Promotional (Regional) Exploration Programme, MECL has undertaken Promotionaldrilling in 7 blocks (3 in Mand Raigarh, 1 in Wardha Valley and 3 in Godavari Valley), GSIhas undertaken 12 blocks for Promotional drilling (4 in Talcher, 2 in Ib Valley, 3 inSohagpur, 1 in Raniganj & 2 in Tatapani Ramakola) and DGM (Nagaland) has undertaken 1block in Northern Khar for Promotional drilling in Coal Sector.

The overall performance of exploratory drilling in 2012-13 is given below:

Performance of Exploratory Drilling in 2012-13

Agency Target 2012-13 (metre) Achieved (metre) Achieved (%) +/- (m) Achieved Prev. Year: 2011-12 (m) Growth %
A.Detailed Drilling by CMPDI:
i.Departmental 2,57,000 2,76,199 107% +19,199 2,73,018 1%
ii. Outsourcing:
State Govts. 8,000 7,397 92% - 603 6,815 9%
MECL (MOU) 89,000 1,38,761 156% +49,761 96,207 44%
Tendering (CIL blocks) 1,47,000 90,779 62% -56,221 17,605 416%
Tendering (non-CILblocks) 81,000 49,772 61% -31,228 1,04,779 -52%
Total Outsourcing 3,25,000 2,86,709 88% -38,291 2,25,406 27%
Total A: 5,82,000 5,62,908 97% -19,092 4,98,424 13%
B. Promotional Drilling in Coal Sector:
MECL 40,250 30,594 76% -9,656 25,997 18%
GSI 13,750 14,702 107% +952 17,872 -18%
DGM, Nagaland 500 328 66% -172 289 14%
DGM, Assam 500 0 - -500 0 -
CMPDI 3000 0 - -3000 - -
Total B: 58,000 45,624 79% - 12,376 44,158 3%

*In 2012-13, a total of 3,35,342m drilling in CIL blocks and 2,27,699m in Non-CILblocks were done

In 2012-13, CMPDI achieved its departmental and overall drilling targets by 107% and97% respectively. The performance of departmental drilling was better than previous yearwith 1% growth and recorded average operational drills productivity of 434 m/drill/ month.Non-availability of permission to explore in forest areas and local problems (law &order) have affected the performance of outsourced drilling. MECL could not achieve thetargets of Promotional drilling in coal sector due to forest problems.

21.2 Geological Reports:

In 2012-13, 15 Geological Reports (excluding GR for PR) were prepared on the basis ofdetailed exploration conducted in previous years. The prepared Geological Reports havebrought about 3.3 Billion Tonnes of coal resources under ‘Proved’ category.Under Promotional Exploration Programme, CMPDI, GSI and MECL have submitted 9 GeologicalReports on coal blocks, estimating about 3.7 Billion Tonnes of coal resources, in‘Indicated’ category, above the specified thickness.

22. OUTSIDE – CIL CONSULTANCY SERVICES:

During the year 2012-13, 28 consultancy jobs were done for 20 organisations outsideCIL. Some of the major clients/organisations for whom jobs were completed are DirectorateGeneral of Hydrocarbons, Manganese Ore (India) Ltd., National Thermal Power CorporationLtd., Central Electricity Authority, Steel Authority of India Ltd., MahaGuj CollieriesLtd., Monnet Ispat & Energy Ltd, Jindal Steel & Power Ltd., etc.

Presently, 30 outside-CIL consultancy jobs are in hand for 18 organisations likeHindustan Copper Ltd., Manganese Ore (India) Ltd., National Thermal Power CorporationLtd., Neyveli Lignite Corporation Ltd., Orissa Mining Corporation, Mahaguj CollieriesLtd., Baitarni West Coal Company Ltd., Jindal Steel & Power Ltd. Odisha PowerGeneration Corporation, Mahan Coal Ltd., etc.

During the year 2012-13, 32 outside-CIL consultancy jobs worth Rs. 35.08 crores from 20organisations were received by CMPDI. This includes consultancy jobs worth Rs. 7.62 croresfrom M/s Odisha Industrial Infrastructure Development Corporation (IDCO) for preparationof "Comprehensive Master Plan for Talcher and Ib-Valley Coalfields’.

23. RESEARCH & DEVELOPMENT PROJECTS

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

The R&D activity in Coal sector is administered through an apex body namely,Standing Scientific Research Committee (SSRC) with Secretary (Coal) as its Chairman. Theother members of this apex body include Chairman CIL, CMDs of CMPDI, SCCL and NLC,Directors of concerned CSIR laboratories, representatives of Department of S&T,Planning Commission and educational institutions, amongst others. The main functions ofSSRC are to plan, programme, budget and oversee the implementations of research projectsand seek application of the findings of the R&D work done.

The SSRC is assisted by a Technical sub-committee headed by CMD, CMPDI. The committeedeals with research proposals related to coal exploration, mining, mine safety, coalbeneficiation & utilisation and also the project proposals on mine environment andreclamation.

CMPDI acts as the Nodal Agency for co-ordination of research activities in the coalsector, which involves identification of 'Thrust Areas' for research activities,identification of agencies which can take up the research work in the identified fields,processing the proposals for Government approval, preparation of budget estimates,disbursement of fund, monitoring the progress of implementation of the projects, etc.

Total no. of S&T projects taken up (till 31.3.2013) 378
Total no. of S&T projects completed (till 31.3.2013) 305

23.2 Physical performance

During the first year of XII Plan period i.e. 2012-13, 3 projects have been completedby various agencies. The status of Coal S&T projects during 2012-13 is as under:

i) Projects on-going as on 1.4.2012 14
ii) Projects sanctioned during 2012-13 04
iii) Projects completed during 2012-13 03
iv) Projects on-going as on 1.4.2013 15

Following Coal S&T projects were completed during 2012-13:

i) Development and optimization of coal bed recovery process for CO2 sequestration.

ii) Treatment of acid mine water generated in Indian coal mines using low costmaterial.

iii) Emission from coal based industries - development of predictive models.

23.3 Financial status

Budget provisions vis--vis actual fund disbursement during the period are givenbelow:

(Rs. in crores)

2011-12 2012-13
RE Actual RE Actual
10.62 9.64 11.40 11.53

23.4 CIL R&D Projects

For in-house R&D work of CIL, R&D Board headed by Chairman, CIL is alsofunctioning. CMPDI acts as the Nodal Agency for processing the proposals for CIL approval,preparation of budget estimates, disbursement of fund, monitoring the progress ofimplementation of the projects, etc.

In order to enhance R&D base in command areas of CIL, CIL Board in its meeting heldon 24th March 2008 has delegated substantial powers to CIL R&D Board and the ApexCommittee of R&D Board. The Apex Committee is empowered to sanction individual R&Dproject upto Rs. 5.0 crore with a limit of Rs. 25.0 crore per annum considering all theprojects together and CIL R&D Board is empowered to sanction individual R&Dproject upto Rs. 50.0 crore.

So far, 69 projects have been taken up under the funds of CIL R&D Board, out ofwhich 41 projects have been completed till March, 2013.

The status of CIL R&D Board Projects during 2012-13 is as follows:

i) Projects on-going as on 1.4.2012 24
ii) Projects sanctioned during 2012-13 05
iii) Projects completed during 2012-13 06
iv) Projects on-going as on 1.4.2013 23

Following R&D projects were completed during 2012-13:

i) GPS based production reporting system in OCP.

ii) Development of CMPDIL capacity for delineation of viable coal mine methane (CMM) /Abandoned mine methane (AMM) blocks in the existing and would be mining areas havingpartly de-stressed coal in virgin coal seams.

iii) Generation/analysis of coalfield wise database of physico-mechanicalcharacteristics of rock/coal and representative numerical models for appropriate solutionto strata control problems.

iv) Development of guidelines for safe dragline dump profile under varyinggeo-engineering condition in opencast coal mines of Coal India.

v) Eliminating the possibility of ignition of gas and incidences of explosion inunderground coal mines due to electrical faults by application of innovative technology offault diversion.

vi) Development of indigenous tool for carrying out random sampling & testing ofexplosives and accessories used in mines of Coal India Limited.

The disbursement of fund for CIL R&D Projects during the year 2012-13 was Rs. 11.22crore.

24. TELECOMMUNICATION SYSTEM

To fulfil the vision of Coal India Limited to become a Leading Global Player in energySector The Information & Communication Technology plays a crucial role. TheInformation & Telecommunication Technology has been identified as a core enabler inevery aspect of Business. Aligning this function with IT strategy for overall businessgoal of CIL is of paramount importance. Continuous efforts are being made by CIL and itsall subsidiary Companies in updating the Telecommunication & IT Solutions. In order toincrease transparency, Process efficiency, optimization of operational cost along withincreasing the Employee,Customer and Investor Satisfaction, the following majorinitiatives have been taken:-

1. CIL Board has approved implementation of Enterprise Resource Planning System alongwith Tele Communication Infrastructure at Coal India Limited and its Subsidiariesencompassing all areas ,Mines,Stores,Weighbridges,and Hospitals etc. to improve itsoperational and financial efficiencies. A committee has been constituted forimplementation.

2. GPS based Operator Independent Truck Dispatch System (OITDS) with high speed dataand voice communication along with GUI is in the final stage of commissioning in alleleven high production Opencast Projects to optimize the operation of Heavy EarthMoving Equipment and to enhance the production and productivity of the Mine.

An ambitious plan to commission GPS/GPRS based Vehicle Tracking System across all othermajor Mines of Coal India has been taken up .After a successful development trial atViswakarma Mine of BCCL ,formal trial order has been placed for Kusunda Area forcommissioning of Vehicle Tracking System.

3. E-Auction of Coal is in vogue through Service provider of CIL. Also E-Procurement ofGoods & Services, E-Filing of grievances and E-Payments to Employees/Vendors arealready in operation to embark upon the business processes through IT initiatives.

In order to improve Coal dispatch, actions are being taken to connect all weighbridgeswith Central Server of respective Subsidiaries. Connectivity to weighbridges of BCCL ,SECLmines are in place, while at other subsidiaries, viz,ECL,CCL,MCL etc is in differentstages of completion.

4. The dedicated web portal of Coal India Limited has already been established inbilingual version with features viz Employees portal, Tender Publication, Online GrievanceRegistration, Posting, Investor Center, Customer Corner facility. The portal alsofacilitates online receipt of Career Applications for recruitment and Link toE-Procurement/E-Auction Service providers. Existing Corporate Mail Messaging System hasbeen programmed to upgrade for 19500 Users i.e. all executives of Coal India & itsSubsidiary Companies.

5. Considerable progress has been made in establishing network infrastructure forbetter Communication facility (Surface & Underground) for faster business process& quick refund of Coal value of unlifted quantities and earnest Money as per directiveof MOC using State of Art Convergent Technology.

6. In order to meet the demanding business process, State of the Art IP base EPABX withsupport of convergent Technology (for voice and data), Radio Communication System and UGCommunication System at different locations of Coal India & its Subsidiary companiesare being installed

25. MINES SAFETY

Coal India Limited has always given the highest priority towards "Safety".Safety is considered as a part of its core production process and is embedded in themission statement. CIL has framed well defined Safety Policy and formed multidisciplinaryInternal Safety Organization (ISO) in every subsidiary company as well as at CIL (HQ) tomonitor implementation of CIL’s safety policy.

Accidents statistics is the relative indicator for safety status. Over the years, thesafety performance in terms of accident rate has improved significantly. 25.1 Thisimprovement in safety is attributed to the following factors:

• Collective commitment and synergies shown by the management and workers

• Use of advanced and updated technology in the field of mining methods,machineries and safety monitoring mechanism.

• Continuous improvement in knowledge and skill of our workforce through impartingquality training and relentless safety awareness drives.

• Strong oversight and assistances from various quarters.

Salient features of continuous and sustained improvement in CIL’s safetyperformance:

1. The average fatalities for every 5 years have shown a reducing trend since theinception of CIL in the year 1975 as is evident from the graph given below:

Note: Figures since 2010 are subject to reconciliation with DGMS

2. The average fatalities for the period 2010-12 has been reduced to 66 from theaverage 196 fatalities during the time period 1975-79.

3. The average serious injuries for 5 years time period in CIL since its inception upto2012 has also shown a reducing trend as is evident from the graph below:

Note: Figures since 2010 are subject to reconciliation with DGMS

4. The average serious injuries have reduced more sharply than fatalities during thesame period. As the figures of serious injuries are the precursor to fatal accidents andmine disaster, it indicates that there is considerable improvement in safety standards ofour mines.

Analysis of trend of Accident Statistics of CIL for the last 5 years indicates overallimprovement in safety performance in CIL.

• Reducing trend of Fatalities of CIL from the last 5 years.

Note: Figures since 2010 are subject to reconciliation with DGMS

• Reducing trend of Serious Injuries in CIL for the last 5 years.

Note: Figures since 2010 are subject to reconciliation with DGMS

Details of Accident Statistics in 2012 vis--vis 2011:

During the year 2012, there were 53 fatal accidents and 56 fatalities in CIL minescompared to 51 and 53 respectively in 2011. Thus, the number of fatal accidents andfatalities in 2012 compared to 2011 has marginally increased. However, serious accidentsand serious injuries for the year 2012 compared to 2011 have reduced significantly to 183& 189 respectively from 242 & 256 respectively. This is the lowest seriousaccidents and serious injuries since the inception of CIL.

A. Overall: - Accident Statistics for CIL in 2012 compared to 2011 are given below:

Sl. No. Parameters 2011 2012
1 Numbers of fatal accidents 51 53
2 Numbers of fatalities 53 56
3 Numbers of serious accidents 242 183
4 Numbers of serious injuries 256 189
5 Fatality Rate per million ton of coal production 0.13 0.12
6 Fatality Rate per 3 lakhs manshift deployed 0.19 0.20
7 Serious injury Rate per million ton of coal production 0.60 0.42
8 Serious injury Rate per 3 lakhs man shift deployed 0.90 0.68

Note: 1. Accident Statistics are maintained calendar year-wise in conformity with DGMSpractice

2. All figures are subject to reconciliation with DGMS

25.2: Major Activities of Safety & Rescue Division of CIL:

1. Inspection of mine to review safety status & follow up action thereby.

2. Prima-facie fact finding enquiry into major incidences such as mine fire,subsidence, in-rush of water, slope failure, explosion as well as major fatal accident.

3. Organizing meeting of CIL Safety Board and monitoring recommendations / suggestionsmade during the meeting.

4. Organizing meeting of National Dust Prevention Committee (NDPC) and monitoringrecommendations / suggestions of NDPC.

5. Framing of internal technical circulars related to safety issues and monitoringimplementation thereby.

6. Maintenance of accidents / major incidents statistics in Database.

7. Publication of Safety Bulletin for disseminating and sharing of knowledge in orderto promote safety awareness and inculcate better safety culture.

8. Framing reply to coal mine safety related parliamentary questions including queriesraised by different standing committees such as standing committee on energy, standingcommittee on labour, as well as questions raised by COPU, MOC, C&AG and VIPs.

9. Monitoring safety related R&D activities in CIL.

10. Imparting specialized training by SIMTARS accredited trainers to unit level andArea level executives who are directly engaged in ensuring safety in mine.

25.3 Actions taken for improvement in Safety in Mines undertaken in 2012

To improve the safety standard, CIL has vigorously pursued several measures in the year2012 along with on-going safety related activities / initiatives apart from compliance ofstatutory requirements for safety, which are given below.

A. Mining Operation:

• Stress on introduction of Mass Production Technology in UG mines.

• More number of surface miner introduced to eliminate blasting operation inopencast mines to make mining operation more eco-friendly and safe.

• Introduction of High Wall Mining at Sharda Mine in Sohagpur Area of SECL

• Higher capacity HEMMs is being used.

• Mechanisation of drilling (for bolting) planned to be adopted in all mines in aphased manner.

• Phasing out of manual loading as per recommendation of 10th National SafetyConference in a phased manner

• Man Riding System (MRS) are being used in underground mines having long /arduous travel.

• Operator Independent Truck Dispatch System (OITDS) is being provided in largeOCP.

B. Strata Management: Roof & Side fall is still one of the major causes of fatalaccident and fatality in underground mines. Steps taken for better strata controlmonitoring are as follows:

• Use of more number of mechanised roof drilling machines.

• Switching over to use of resin capsules from cement capsules in a phased manner.

• Initiatives have been taken to develop device with appropriate audio-visualalarm to monitor the behaviour of overlying roof strata.

• Several roof-monitoring devices have been developed at Area / Mine levelworkshop and tried in underground mines.

C. Spontaneous heating, fire & explosion in mine:

• Expedite construction of sectionalisation stoppings.

• Fresh Pressure Quantity(PQ) Survey for checking efficacy of ventilation

• Initiated action to introduce more number of Gas Chromatographs in addition toconventional method of mine air sampling

• Use of Local Methane Detector (LMD) for early and accurate detection of methane.

D. Opencast Safety:

• Slope Stability Radar (SSR) are being installed in large OCP.

• Training Simulator for training of dumper operators.

• Installation of Proximity devices in dumpers

• Using rear view camera in tippers and dumpers

E. Safety R&D initiatives at CIL (HQ) level:

• Construction of quick setting stopping in case of fire in UG mines by usingexpansion foam agent.

• Development of notch cutting machine to facilitate speedy cutting of recess forconstruction of stopping in UG.

• Eliminating the possibility of ignition of gas and incidences of explosion in UGmines due to electric fault by application of innovating technology of fault diversion.

F. Occupational Health Services:

• Computerization of health records / Medical history of employees for effectivemedical care.

• Organizing Wellness Clinic at different subsidiary.

• Free health examination of all the contractual workers.

• Organizing Conference on Occupational Health to enhance awareness.

G. Safety Training & Others:

• Training programme was arranged by CIL with SIMTARS, Australia to developtrainer for imparting safety training. 20 executives were trained (10 each for UG and OCmines). These executives are being used for imparting the specialized training on"Preparation of Safety Management Plan (SMP) based on Risk Assessment". So far,1412 executives from 446 mines of different subsidiary companies of CIL have already beentrained and these trained unit / mine level executives are imparting further training tosupervisor and workers of grass root level for disseminating the knowledge and skill. Riskassessment Safety Management Plan (SMP) based on training imparted by SIMTARS accreditedtrainers is under process in all mines of CIL and completed in 197 mines of CIL.

• Digitization of mine plan.

• Introduction of LED type light weight cap lamp

26 MINES RESCUE SERVICES

A well-equipped Rescue Service Organization staffed by rescue personnel trained inmodern training galleries and equipped with modern rescue equipment is maintained by thesubsidiary companies of CIL. At present there are 6 Rescue Stations, 15 RescueRooms-with-Refresher Training facilities and 18 Rescue Rooms in CIL.

27. HUMAN RESOURCE DEVELOPMENT

27.1 Overall Performance

HRD performance was more than MoU Target. CIL and its subsidiaries have trained 58541employees during 2012-13, out of which 18560 were executives and 39981 werenon-executives. These trainings include in- house training (training at subsidiarytraining centers and also at IICM), training in other reputed institutes outside thecompany and training abroad.

27.2

i) In-house Training

The In-house trainings were organized at subsidiary HQs., 27 Training Centers and also102 VT Centers across Coal India and also at IICM. Respective HRD Division organized thesetrainings after assessing the training need of employees within the subsidiary. Specialattention was given for improving skill of the employees keeping in mind the need of theIndustry. Details of in-house Training are listed below:-

Category Training Short Training Workshop/ Seminar Total
Executive 6229 4654 5006 15889
Non-executive 28718 9409 660 38787
Total 34947 14063 5666 54676

ii) Training Outside Company (Within the Country)

Besides in-house training at our Training Institutes, VT centers and IICM, employeeswere trained within the country at reputed training institutes, in their respective fieldof operations and also for supplementing our in-house training efforts. The break-up isgiven below:-

Category Training Short Training Workshop/ Seminar Total
Executive 1390 847 402 2639
Non-executive 800 65 329 1194
Total 2190 912 731 3833

iii) Training Abroad

Coal India had sent 32 executives viz. 11 for training and 21 for Seminar\conference todifferent countries from subsidiary companies and CIL (HQ) during the year 2012-13.

27.3 Initiatives

• CIL has been recruiting fresh and dynamic young bloods in different disciplinesfor the last few years. This year, 1454 Management Trainees (Direct recruitment throughexamination 785 & through campus selection 669) have been recruited in all majordisciplines. Special attention has been given in grooming these young and energeticpersons in their respective fields throughout the year. In addition to the introductoryconcept on Coal Industry, they have been trained on basic Management Techniques (MAP) andalso in their respective Technical fields (TAP) through regular courses organized at IICMwith the reputed faculties. Special attention has also been given in tuning them in theirrespective specialized working areas by on-the-job training throughout the year. Theirprobation is closed after appearing for the examination at the end of first yearsuccessfully.

• As MTs of Excavation and E&M disciplines are posted in different Coal Mines,to provide them proper exposure to Mining Operations as well as Mining Equipments (bothsurface and underground) 5 weeks intensive training in different batches for a total of289 MTs was organized at Indian School of Mines, Dhanbad, the premier Mining Institute ofour country.

• 2 senior executives were sent to Japan to attend 8 days training programme on"Clean Coal Technology"

• 5 middle level executives were sent to China to attend 20 days trainingprogramme on "Fully Mechanized Coal Mining Technology 2012"

• 72 executives have been given certified training in Project Management at IICMand other renowned Institutes.

• 60 executives have been given certified training in Contract Management at IICMand other reputed Institutes.

• Six months Advanced Certificate Course on Business Valuation & CorporateRestructuring was organized in association with The Institute of Cost Accountants of Indiafor 11 finance executives of CIL Hqrs.

28. MANPOWER

28.1 The total manpower of the Company including its subsidiaries as on 31.03.2013is 3,57,926 against 3,71,546 as on 31.3.2012. Subsidiary company wise position of manpoweris as below :-

Company As on Total
ECL 31.03.2013 74276
31.03.2012 78009
BCCL 31.03.2013 61698
31.03.2012 64884
CCL 31.03.2013 48126
31.03.2012 50026
WCL 31.03.2013 54960
31.03.2012 56989
SECL 31.03.2013 73718
31.03.2012 76078
MCL 31.03.2013 22065
31.03.2012 22023
NCL 31.03.2013 16073
31.03.2012 16329
NEC 31.03.2013 2376
31.03.2012 2538
CMPDIL 31.03.2013 3142
31.03.2012 3129
DCC 31.03.2013 551
31.03.2012 562
CIL(HQ) 31.03.2013 941
31.03.2012 979
CIL as a whole 31.03.2013 357926
31.03.2012 371546

28.2 The presidential directives for Scheduled Caste/Scheduled Tribes/OBC have beenimplemented in all the subsidiaries/units of Coal India Limited.

The representation of SC/ST employees in total manpower of CIL and its SubsidiaryCompanies as on 1.1.2012 and 1.1.2013 are given below :-

As on Total Manpower

Scheduled Caste

Scheduled Tribe

Nos. Percentage Nos. Percentage
1.1.2012 374650 77885 20.79 45424 12.12
1.1.2013 361348 74780 20.69 43342 11.99

29 INDUSTRIAL RELATIONS AND EMPLOYEES’

PARTICIPATION IN MANAGEMENT

The Industrial Relations scenario in CIL & its subsidiaries during the yearremained cordial. JCCs and different Bipartite Committees at Unit/Area levels andSubsidiary (HQ) levels continued to function normally. Meetings of StandardisationCommittee and Apex JCC were held at regular intervals at CIL.

Strikes and Bandhs

Company-wise details of strikes, mandays lost and production lost and other incidentsare furnished in the following table :-

STRIKES AND BANDHS

Company

No. Of Strikes/Bandhs

No. of other incidents

Mandays lost

Production Lost

2011-12 2012-13 2011-12 2012-13 2011-12 2012-13 2011-12 2012-13
ECL 2+0 2+1 31 6 41462 27427 71000 24100
BCCL 2+0 2+1 5 7 6935 7557 9825 19700
CCL 2+0 2+1 110 61 30801 4165 118976 00
WCL 2+0 2+1 0 2 32937 40366 90976 201800
SECL 2+0 2+1 0 0 49563 56571 93362 239000
NCL 2+1 2+1 0 12 10843 1769 116000 73500
MCL 2+0 2+1 0 0 16758 1617 309300 00
NEC 2+0 2+1 0 0 1737 198 600 00
CMPDI 2+0 2+1 0 0 1347 677 503 00
CIL 2+0 2+1 0 0 00 60 00 00
Total 2+1* 2+1 146 88 192383 140407 810542 558100

Bandh- On 31.5.2012, All Political Parties called 24 hours Bharat Bandh on politicalissue/price hike.

Strike – 2 days All India General Strike on 20th & 21st Feb.,2013 called byINTUC, AITUC, CITU, HMS & BMS over the National issues

30. EMPLOYEES’ WELFARE AND SOCIAL SECURITY SCHEMES

EMPLOYEES WELFARE

The focus of Welfare Activities is the well-being of employees and their families. Thecoal companies are paying greater attention to the welfare of their workers. Every effortis being made to improve the living conditions of the coal miners. In order to create asense of belonging and involvement in work, top priority is given by the management toprovide housing, medical, educational facilities, sports & cultural facilities etc.

1) Structured Sports Policy of CIL and its subsidiaries, Memorandum of Association andRegulation and Registration under West Bengal Societies Registration Act 1961 have beenframed and approved by CIL Board.

During 2012-13 initiative was taken for preparation of structured Sports Policy of CILand its subsidiaries, Memorandum of Association and Regulation and Registration under WestBengal Societies Registration Act 1961 which was approved by CIL Board in its 296thmeeting held on 25th March 2013. The objective of the policy are as under:-

a) To formulate the policy for promoting excellence in sports at State,National/International levels and use these efforts as a vehicle to enhance the image ofthe company through the sports persons as Brand Ambassador.

b) To promote, develop and control the various Sports/ Recreational/Cultural activities& to foster the spirit of sportsmanship and solidarity amongst the employees of CoalIndia and its subsidiaries.

c) To advise and assist in the improvement and construction of sports Academy/grounds/Clubs/Auditorium & to allocate funds for various Sports Activities within Coal Indiaand its subsidiaries.

d) To conduct and support various sports Meets & other sports activities within CILand its subsidiaries as well as outside the Company, by either sponsoring such activitiesor by inviting outstanding sports persons to participate in combined Coal India Teams.

e) To affiliate itself to National Sports Federations/Associations and otherappropriate institutions in sporting/recreational/ cultural activities & to act as aCentral Body.

f) To recommend to CIL Management, regarding recruitment of young, promising andoutstanding sportspersons and promotion of existing reputed players associated with CILand its subsidiary companies.

g) To raise national level teams in identified games through scientific coaching,providing state-of-the-art equipment and infrastructure.

h) To generate corporate goodwill and brand equity by sponsoring / co-sponsoringvarious sports/ games events at State, National and International level.

i) To liaise with National and State Association / Bodies/ Federations promotingsports, games and cultural activities within India with a view to further sports centricobjectives of the Company.

2) Implementation of Revised Contributory Post Retirement Medicare Scheme for Executive(CPRMSE) of CIL and its subsidiaries.

a) Board of Directors of CIL in its 289th Meeting held on 18.09.2012 has approved themodifications/additions in the Contributory Post Retirement Medicare Scheme for Executivesof CIL and its Subsidiaries (CPRMSE).

The reimbursement charges for hospitalization (Indoor treatment) as per CPRMSE has beenenhanced to Rs. 25 Lakhs or Rs. 12.5 Lakhs as the case may be with immediate effect. Therewill be no limit for specified diseases as mentioned in Clause 3.2.1 (d) of the Scheme,which will not be accounted against the amount of Rs. 25 lakhs or Rs. 12.5 Lakhs as thecase may be.

Further, annual charges for domiciliary/Outdoor treatment expenses has also been raisedfrom Rs. 7,500/-, Rs. 10,000/- to Rs. 15,000/- payable in two instalments.

The Contributory Post Retirement Medicare Scheme for Executives of CIL and itsSubsidiaries (CPRMSE) as modified is published in website www.coalindia.in

b) 1534 CPRMSE Registered Medical Card has been issued as on 31.03.2013, out of which241 additional registered Medical Card issued to the retired executives for Outdoor/domiciliary treatment as well as Indoor treatment.

3) HOUSING:

At the time of nationalisation, there were only 1,18,366 houses including sub-standardhouses. The availability of these houses has increased to 3,99,329 (as on 31.03.2013). Thepercentage of housing satisfaction has now reached 100%.

4) WATER SUPPLY:

As against 2.27 Lakhs population having access to potable water at the time ofNationalisation, presently a populace of 21.17 Lakhs (as on 31.03.2013) has been coveredunder water supply scheme.

5) MEDICAL FACILITIES:

Coal India Ltd and its subsidiaries are extending medical facilities to its employeesand their families through various medical establishments from the Dispensary level to theCentral and Apex Hospitals in different parts of the coalfields.

There are 85 Hospitals with 5,806 Beds, 411 Dispensaries, 664 Ambulance and 1426Doctors including Specialists in CIL and its subsidiaries to provide medical services tothe employees. Besides 11 Ayurvedic Dispensaries are also being run in the Subsidiaries ofCoal India Limited to provide indigenous system of treatment to workers.

In addition, subsidiary companies have also been organizing different medical camps forthe benefit of the villagers/community. Special emphasis has also been given onOccupational Health, HIV/AIDS awareness programme for the employees and their families.

More over, medical facilities are provided to the peoples residing in and around minespremises of the subsidiary companies of CIL.

6) EDUCATIONAL FACILITIES:

The primary responsibility of providing educational facilities lies with the StateGovernments. However, the subsidiary companies of CIL have been providing financialassistance and infrastructure facilities to certain renowned schools like DAV PublicSchools, Kendriya Vidyalaya, Delhi Public School etc to impart quality education.

Coal India Scholarship Scheme (Revised – 2001)

In order to encourage the wards of employees of Coal India Limited, two types ofScholarship namely Merit and General Scholarship, are being provided every year under theprescribed terms and conditions.

Scholarship:

No. of students, who have been getting Scholarship and No. of students of IIT, NIT andshort listed Institutions, whose tuition fee and Hostel charges are reimbursed are asunder:-

Company No. of Scholarship Awardees No. of students in IITs, NITs and others
ECL 1165 61
BCCL 1502 17
CCL 1520 16
WCL 4936 97
SECL 3196 198
MCL 1508 56
NCL 956 105
CMPDIL 327 24
Total 15110 574

Grant sanctioned for Schools:

Company Amount
(Figs. in Lakh Rs.)
ECL 30.00
BCCL 85.50
CCL 1984.00
WCL 888.00
SECL 4238.00
MCL 1551.17
NCL 28.23
CMPDIL 1.00
Total 8805.90

7) Statutory Welfare Measures:

In accordance with the provision of the Mines Act 1952 and Rules and Regulations framedthere-under, subsidiaries of Coal India Limited are maintaining various statutory welfarefacilities for the coal miners such as Canteen, Rest Shelters and Pit Head Baths etc

8) Non-statutory Welfare Measures:

Co-operative Stores and Credit Societies:

In order to supply essential commodities and Consumer goods at a cheaper rate in theCollieries, 24 Central Co-operatives and 128 Primary Co-operative Stores are functioningin the Coalfield areas of CIL. In addition, 181 Co-operative Credit Societies are alsofunctioning in the Coal Companies.

9) Banking Facilities:

The Management of Coal Companies are providing infrastructure facilities to the variousNationalised Banks for opening their Branches and Extension Counters in the Coalfields forthe benefit of their workers. Workers are educated to draw their salaries through 463 Bankbranches/ Extension Counters and they are also encouraged to practice thrift for thebenefit of their families.

10) Welfare, Development and Empowerment of Women

In Coal India Limited there is a Forum for Women in Public Sector Cell at CompanyHeadquarter- Kolkata and five subsidiary companies viz. ECL, BCCL, CCL, SECL & CMPDI.Each WIPS Cell is headed by a Coordinator who plans and executes various activities of theForum with the help of a duly appointed Executive Committee. The company extends activesupport to various activities of WIPS comprising of welfare activities, training &development activities, seminars, cultural programmes, industrial awareness visits, healthawareness programme etc for the WIPS members, women workers, their families and society atlarge.

Coal India Ltd and its subsidiary companies are extending full fledged support andpatronage to the National Conference of Forum of WIPS held every year in February atpredetermined locations by sponsorship of the event, nomination of maximum number ofdelegates and also by competing for the BEST ENTERPRISE award. As a matter of fact, inprevious years SECL, ECL & BCCL have won the coveted award for outstanding womenoriented/gender friendly activities. In recent years, WIPS cell have done commendable workin reaching out to the grassroot level women employees, empowering them by suggestinggainful redeployment, training and uplifting their morale by recognizing outstandingachievement, recognizing and honouring the exceptional talent.

11) Corporate Social Responsibility (CSR):

Coal India Limited has a well-defined CSR policy based on the guidelines issued byDepartment of Public Enterprise for Central PSUs on CSR, which is also applicable inrespect of subsidiary companies of CIL. The CSR policy is operational within the radius of25 KM of the project site and areas including Head Qtrs. Further CSR activities are alsoundertaken beyond mining areas within the respective state with the approval as per norms.CIL being a holding company, execute CSR activities which are beyond the jurisdiction ofsubsidiary companies

The annual budget for CSR is allocated based on 5% of retained earnings of previousyear subject to minimum of Rs. 5 per tonne of coal production of previous year. In respectof CIL 2.5% of retained profit of last year is allocated for execution of CSR activities.During 2012-13, an amount of Rs. 595.74 Crores (including spill over) has been allottedfor undertaking CSR activities of Coal India Limited and its subsidiaries.

12) Special Cash Award:

During 2012-13, an amount of Rs. 1,64,000/- has been provided as Special Cash Award to30 meritorious Sons and Daughters of employees of CIL(Hqrs.), Kolkata Desk Offices ofsubsidiary companies and Dankuni Coal Complex @Rs. 7,000/- for seven(07) students who havesecured 90% or above marks in Class-XII Board level examination and @Rs. 5,000/- fortwenty-three (23) students who have secured 90% or above marks in Class-X Board levelexamination.

13) Recreational facilities:

Apart from the existing Holiday Homes running at Puri, Digha, Goa, Manali, Katra,Ajmer, Nainital, Haridwar, Gangtok, Pelling and New Delhi, Darjeeling has also beenincluded in the list during 2012-13 which are available to the employees of CIL and itssubsidiaries at a subsidized rate.

14) CIL Welfare Board Meeting.

40th meeting of Coal India Welfare Board was held on 4th May 2012 at Bangalore with theCentral Trade Union Representatives and the representatives of the Management to discussand decide regarding welfare policies, implementation of different welfare scheme in CILand its subsidiaries.

31. TREE PLANTATION/ AFFORESTATION.

In order to improve the environment, Coal India Limited and its subsidiaries haveplanted 15.86 lakhs tree saplings during 2012-13 in the Coalfields under plantation/afforestation programme. In total, subsidiaries of Coal India limited have planted around78 million of plant over a land area of over 33700 ha upto 31st March, 2013.

32. PROGRESSIVE USE OF HINDI.

Coal India Limited continued its efforts to propagate and spread the progressive use ofHindi during the period under review. The management of Coal India Limited is committed toimplement the provisions of Official Languages Act, Rules and Regulations. For this,periodical meetings and reviews are being conducted regularly.

With a view to create working atmosphere in Hindi and to remove hesitation of officersand employees to work in Hindi, Hindi Workshops were organized regularly. During the year,substantial number of persons participated in such workshop, to refresh their knowledge inHindi Words, Hindi noting & drafting in their regular official works.

As per directives of Govt. of India, Hindi Divas was celebrated on 14th September 2012at Coal Bhawan. Starting from 14th September, Hindi Fortnight was observed in all officesof Coal India Ltd. During the fortnight Hindi competitions such as Hindi Noting-Drafting,Hindi Essay, Hindi Dictation, Hindi Translation & Hindi Computer Typing were organizedwhere large no. of employees participated enthusiastically. The winners were honoured withCash awards & certificates. This brought collective awareness towards use of Rajbhashain Official Works. The Regional Sales Offices situated in different cities were grantedsufficient fund to celebrate Hindi Divas & Hindi Week/Fortnight as per their practice.In order to promote Hindi HASYA KAVI SAMMELAN was organized on 07.12.2012 at RohiniHousing Complex, Ultadanga, Kolkata where large number of members were present.

With a view to promote Hindi knowledge among the employees, 10 sets of 09 reputed Hindimagazines are being distributed to different departments/sections. Each & everycomputer has a facility to work bilingually. "Smirity Puraskar Yojna" has beenintroduced in CIL HQ including subsidiaries/subordinate offices to promote the Officialuse of Hindi.

Inspection of offices is also a part of implementation. The 3rd sub committee ofCommittee of Parliament on Official Language inspected CIL Delhi office on 29.06.2012 tooversee the status of use of Hindi in Official work. In addition, the officials ofRajbhasha Vibhag, Coal India Ltd. have also inspected some subordinate offices with a viewto oversee the status of the implementation of Official Language. The shortcomings seenduring the inspection were corrected & concerned officials were advised to do morework in Hindi as per the instruction given in the Annual Programme.

Another feather in the cap during the period under review is that Coal India Ltd baggedsecond prize in the Corporate Offices Category for the best implementation of OfficialLanguage Policy of the Union by Town Official Language Implementation Committee (PSUs),Kolkata during its half yearly meeting-cum-Prize distribution ceremony held on 30.08.2012.Coal India Ltd has been awarded "Rajbhasha Shiromoni" shield Samman in the fieldof the best performance towards implementation of Rajbhasha in accordance with theOfficial Languages Act & Rules by Bhartiya Bhasha Awan Sanskriti Kendra, Delhi on31.10.2012 at Guwahati.

33. VIGILANCE SET UP

During the year 2012-13, 29 Intensive Examination of Works/ Contracts were undertakenby CIL and its subsidiary companies. In addition, 226 Surprise Inspections were carriedout and 460 investigation cases were completed. Besides, 86 Departmental Inquiries weredisposed of which resulted in punitive action against 158 officials of CIL and subsidiarycompanies. Such examinations/investigations have resulted in initiation of various systemimprovement measures.

As per directives of Central Vigilance Commission, Vigilance Awareness Week – 2012(VAW- 2012) has been observed at CIL Hqrs., Kolkata from 29.10.2012 to 03.11.2012. Thepledge was read in the Board meeting held on 19.10.12. System Improvement Suggestions wereinvited from all employees and the suggestions received were analysed and examined.Banners and Posters were specially designed and published for Vigilance Awareness Week anddisplayed on important locations in all departments. On 31.10.12, Group discussion on"Promotion of transparency and objectivity in awarding contracts/ works/services/tenders etc" was organized at different departments of CIL, with an aim toenhance the transparency in procurement process in organisation. In house contest/competition were organized and entries received from employees and their family members ofdifferent departments of CIL HQ, IICM, NEC and RSOs during the VAW-2012 for Creating aSlogan and Essay writing competition. On 02.11.12, an Open Interactive Session withspecial emphasis on this year theme "Transparency in Public Procurement" washeld. During the session Chief Guest and others deliberated the importance to ensuretransparency and strict adherence to laid down guidelines and procedures for publicprocurement of goods, works and services. During the session, a presentation on Salientfeatures of Public Procurement Bill, 2012 tabled in Parliament, was made by CVO, CIL.

Whistle Blower Vigilance Complaint At Coal India limited :

The Whistle Blower Vigilance Complaint (WBVIG), a web based complaint/grievancehandling system of Vigilance Division, Coal India Limited has been set up for disclosureon any allegation of corruption or misuse of office where identity of the complainant iskept secret. This is based on GoI resolution on Public Interest Disclosure and Protectionof Informer (PIDPIR), popularly known as Whistle Blower policy. The introduction of thissystem strengthens the complaint handling mechanism of CIL, Vigilance Division without anyadditional infrastructure and also encourages the stake holders to participate in anticorruption efforts. This also supports the green initiatives and technology leveraging forachievement of organizational goals.

34. PARTICULARS OF EMPLOYEES.

No Employee had received remuneration during the year 2012-13, either equal to or inexcess of the limits prescribed under Section 217(2A) of the Companies Act,1956 read withthe Companies (Particulars of Employees)Rules,1975 as amended.

35. BOARD OF DIRECTORS

Shri S.Narsing Rao assumed the charge of Chairman cum Managing Director of the companyfrom 24th April 2012. Ms. Zohra Chatterji, Additional Secretary, MoC was holding theadditional charge of Chairman cum Managing Director, CIL from 01.02.2012 and continuedtill 23rd April 2012.

Shri R.Mohan Das, Director (P&IR), Shri N.Kumar Director (Technical) were on theBoard throughout the year. Shri A.K.Sinha, Director (Finance) continued till 31stOct’ 12. Shri B.K.Saxena assumed the charge of Director (Marketing) with effect from19th June 2012. Shri A.Chatterjee assumed the charge of Director (Finance) with effectfrom 1st November 2012.

Ms. Zohra Chatterjee, Additional Secretary, MoC continued as a part-time officialDirector on the Board till 1st February 2013 Ms. Anjali Anand Srivastava, Joint Secretary& Financial Advisor, continued as a Part Time Director throughout the year.

During the year Prof. S.K.Barua, Dr A.K.Rath, Shri Kamal R Gupta, Dr. (Smt) SheelaBhide, Dr. R.N.Trivedi, Ms. Sachi Chaudhuri & Dr. Mohd. Anis Ansari continued asIndependent Directors.

Shri D.C.Garg, CMD, WCL continued as a permanent invitee on the board throughout theyear. Shri A.K.Singh, CMD, CMPDIL continued as a permanent invitee till 31st July2012.Shri D.P.Pande has been appointed as a permanent invitee on the board with effectfrom 12th July 2012 and continued as a permanent invitee for the balance period offinancial year.

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

The Board of Directors held 15 meetings during the year 2012-13.

36. DIRECTORS’ RESPONSIBILITY STATEMENT

In terms of Section 217(2AA) of the Companies Act, 1956, read with the SignificantAccounting Policy at Note 33 and additional Notes on Accounts at Note 34 forming part ofAccounts (CIL- Standalone 2012-13), it is confirmed:

i) That in preparation of the Annual Accounts, applicable Accounting Standards havebeen followed and that no material departures have been made from the same;

ii) That such Accounting policies have been selected and applied consistently throughjudgments and estimates that are reasonable and prudent, to give a true and fair view ofstate of affairs of the company at the end of the financial year and profit & loss ofthe company for that period;

iii) That proper and sufficient care have been taken for maintenance of adequateaccounting records in accordance with the provisions of the Companies Act, 1956 forsafeguarding the assets of the Company and for preventing and detecting fraud and otherirregularities; and

iv) That Annual Accounts have been prepared on a going concern basis.

37. ACCOUNTS OF THE SUBSIDIARIES.

In terms of General Circular No. 2/ 2011 dated 8th Feb 2011 from Ministry of CorporateAffairs that Annual Accounts of the subsidiary companies and the related information shallbe made available to the shareholders seeking such information.

38. COST AUDIT

In pursuant to the directions of Central Govt. for conducting Cost Audit of CostRecords, the proposal for appointment of M/s S.P. Bhattacharya & Co., Cost Accountantsas Cost Auditor of your company for the year 2012-13 was approved by the Central Govt. andthey have accordingly been appointed. The Cost Compliance Report for the year 2011-12 wasfiled by your company on 9th January’ 2013.

39. B.I.F.R AND BRPSE STATUS

39.1 Eastern Coalfields Limited (ECL)

As on 31st March, 1997 accumulated losses of the company exceeded its networth by Rs.251.20 crores. Hence company was referred to BIFR in October, 1997 in terms of Section15(1) of SICA. Due to financial restructuring done by CIL on 31st May 1998 by convertingunsecured loan of Rs. 1179.45 crore into equity, the net worth of the company becamepositive as on that date and company came out of BIFR. Since the company continued toincur losses year after year, the networth of the company again became negative as on 31stMarch, 1999 and the company was again referred to BIFR in November, 1999. Company’scase was registered as case no. 501/2000.

In the 237th ECL board meeting held on 5th August, 2010 ECL board approved a DraftModified/Revised Proposal (DMRP) – June, 2010 for revival of ECL. BRPSE reviewed theECL’s case on 27th August, 2010. Company presented the DMRP (June, 2010). BRPSEadvised the company to revise the physical and financial projections by exploring thepossibility of advancing the project completion to enable the company to come out of BIFRearlier. Hence the revised DMRP (November, 2010) was prepared with a cut-off date of 31stMarch, 2010. As per DMRP (November, 2010) the company was expected to come out of BIFR in2014-15. The revised DMRP (November, 2010) was submitted to BIFR in its meeting held on22nd November, 2010. As advised by BIFR, the Monitoring Agency got the TEV study conductedby a consultant.

In the hearing held on 08.06.2011, BIFR directed the company to serve a copy of DMRPand TEV Report to all the stake holders, advised MA to call a joint meeting of all thestakeholders within four weeks and submit a report if any on the DMRP and TEV Reportvis--vis the suggestions of other stake holders within six weeks. The directions of BIFRwere complied with.

As advised by BIFR in its hearing were held on 02.09.2011, DMRP, September, 2011 wassubmitted. As per the revised DMRP of ECL- September, 2011, the net-worth of the companyis slated to become positive in 2015-16. Effective steps have been taken to implement therevival plan and it is expected that the company will come out of BIFR by 2015-16.

39.2 Bharat Coking Coal Limited (BCCL)

BCCL was referred to BIFR, consequent upon its net worth becoming negative andregistered as a Sick Company vide case No. 504/95 dated 18.12.95. Subsequently, with acapital restructuring through conversion of CIL loan of Rs. 996 Cr. into Equity, the networth of the company was made positive and the Company came out of BIFR in December 1997.However, after completion of accounts for the year 1999-2000, the net worth of the companyagain turned negative. The company was referred to BIFR and registered as a sick companyas case no 502/2001.

As directed, BCCL submitted its Revival Plan to BIFR on 12.04.2004 for itsconsideration. Subsequently, after formation of BRPSE, BCCL submitted its Revival Plan toBRPSE in April’05 suitably modifying the Rehabilitation Plan submitted earlier toBIFR on 12.04.2004. BRPSE recommended the Rehabilitation Plan of BCCL to BIFR forconcurrence.

In its hearing held on 18.05.2009, BIFR directed BCCL to submit updated Revival Scheme/Proposal for revival of BCCL. Accordingly an updated Draft Rehabilitation Scheme (DRS) wassubmitted to BIFR on 11.08.2009. The said Draft Rehabilitation Scheme was approved by BIFRon 28.10.2009 and the same has also been vetted by MOC. A review hearing was held on28.09.2010 on the progress of implementation of the Revival Plan. In the said hearing, theBIFR directs the company to submit the compliance report(s) from time to time on quarterlybasis.

Chronology of events leading to the exit from BIFR during 2012-13

In its hearing held on 3rd Jan’13 BIFR issued the following directives:

(a) The Company M/s Bharat Coking Coal Ltd. (Case No.502/2001) ceases to be a sickindustrial company, within the meaning of Section 3(1)(o) of the SICA as its net worth hasturned positive, and Statutory auditor has also confirmed this, therefore, the Benchdischarged the captioned company from the purview of SICA/BIFR.

(b) Unimplemented provisions of the Sanctioned Scheme, if any would be implemented byall concerned.

(c) All creditors, Statutory Authorities are at liberty to recover their dues, if any,according to Sanctioned Scheme.

(d) The Special Director, if any, appointed by the Board on the Company’s‘Board of Directors’ (BOD) would stand discharged with immediate effect.

(e) The Company would complete necessary formalities with the concerned ‘Registerof Companies’ (ROC) as may be required.

After the above discharge by BIFR, the implementation was required for "Waiver ofthe loan of Rs. 1083 Crores and current account balance of Rs. 1456 crores as well asinterest on other loans in the year in which BCCL shall be consequently enabled to reporta positive net worth" as per the Sanctioned scheme and the directives of BIFR. BCCLBoard at its meeting held on 19th March, 2013 approved conversion of Rs. 2539cr loan into5% non-convertible, cumulative redeemable Preference shares along with amendment ofClauses no. 5 and 15, of the Articles of association and clause V of the Memorandum ofAssociation of the Company.

CIL Board in its 296th meeting held on 25th Mar’13 approved issuance of 5%non-convertible, cumulative, redeemable Preference shares of the face value of Rs. 1000/-each with following conditions:

(a) The preference shares are to be redeemed at the expiry of 7 years from the date ofissue and allotment. However, CIL would have the option to redeem at any time after theexpiry of 5 years from the date of issue and allotment of the shares.

(b) Redemption of preference shares at the face value (no redemption premium ) ; and

(c) Annual cumulative dividend is 5%.

BCCL at its 15th EGM held on March 26, 2013 approved the amendment of the aforesaidclauses of the Article of Association and Memorandum of Association. EGM also approved

(a) Increase in Authorised Capital by Rs. 2600 crore by issue of Preference Shares ;and

(b) Issue of Rs. 2539 crore preference shares in favour of CIL for an aggregateconsideration equivalent to the amount of the funds (waiver) by BCCL to CIL.

BCCL Board at its meeting held on 26.03.2013 approved issue and allotment of 5% nonconvertible Cumulative Redeemable Preference Shares to CIL. Taking into effect allotmentof issue of Preference Share, the net worth of the Company turns positive and thedirective of Hon’ble Bench of BIFR is complied and an intimation in this regard wasalso sent to BIFR on 02.04.2013.

40. ACKNOWLEDGEMENT:

The Board of Directors of your Company wishes to record their deep sense ofappreciation for the sincere efforts put in by the employees of the company and the TradeUnions. Your Directors also gratefully acknowledges the co-operation, support and guidanceextended to the company by various Ministries of the Government of India in general andMinistry of Coal in particular, besides the State Governments. Your Directors alsoacknowledge with thanks the assistance and guidance rendered by the Auditors, theComptroller and Auditor General of India and the Registrar of Companies, West Bengal andwishes to place on record their sincere thanks to the Consumers for their patronage.

41. ADDENDA

The following are annexed.

i) The comments and review of the Comptroller and Auditor General of India.

ii) Replies to the observations made by the Statutory Auditors on the Accounts for theyear ended 31st March, 2013.

iii) Statement pursuant to Sec. 212(i) (e) of the Companies Act, 1956.

iv) Foreign Exchange Earning and Outgo (Annexure I)

v) Details about research and development of the Company (Annexure II).

vi) Observations of Auditor and Management Explanation under Sec 217(3) of CompaniesAct 1956. (Annexure III).

vii) Performance against MoU for the year 2012-13

(Annexure IV).

For and on behalf of the Board of Directors
S. Narsing Rao
Chairman
Kolkata, 1st July, 2013

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 619(4) OF THECOMPANIES ACT, 1956 ON THE ACCOUNTS OF COAL INDIA LIMITED FOR THE YEAR ENDED 31 MARCH 2013

The preparation of financial statements of Coal India Limited for the year ended 31March 2013 in accordance with the financial reporting framework prescribed under theCompanies Act, 1956 is the responsibility of the management of the company. The statutoryauditors appointed by the Comptroller and Auditor General of India under Section 619(2) ofthe Companies Act, 1956 are responsible for expressing opinion on these financialstatements under section 227 of the Companies Act, 1956 based on independent audit inaccordance with the auditing and assurance standards prescribed by their professional bodythe Institute of Chartered Accountants of India. This is stated to have been done by themvide their Audit Report dated 20.05.2013.

I, on behalf of the Comptroller and Auditor General of India have conducted asupplementary audit under section 619(3) (b) of the Companies Act, 1956 of the financialstatements of Coal India Limited for the year ended 31 March 2013. This supplementaryaudit has been carried out independently without access to the working papers of thestatutory auditors and is limited primarily to inquiries of the statutory auditors andcompany personnel and a selective examination of some of the accounting records. On thebasis of my audit nothing significant has come to my knowledge which would give rise toany comment upon or supplement to Statutory Auditors report under section 619(4) of theCompanies Act, 1956.

For and on behalf of the
Comptroller & Auditor General of India
(Yashodhara Ray Chaudhuri)
Pr. Director of Commercial Audit &
Place: Kolkata Ex-officio Member, Audit Board-II
Dated: 24.05.2013 Kolkata
   

Peer Comparison

Company Market Cap
(Rs. in Cr.)
P/E (TTM)
(x)
P/BV (TTM)
(x)
EV/EBIDTA
(x)
ROE
(%)
ROCE
(%)
D/E
(x)
Coal India 183,742.91 11.01 8.96 16.61 48.9 45.8 0.05
NMDC 59,034.38 9.97 2.15 3.48 24.4 36.5 0.00
Sesa Sterlite 57,100.12 46.52 4.31 26.71 0.9 3.1 0.31
Hind.Zinc 55,604.95 7.78 1.72 5.21 23.3 26.5 0.00
Hind.Copper 7,082.56 21.03 4.31 14.56 23.4 25.5 0.00
G M D C 4,429.74 11.17 1.75 5.10 26.2 33.6 0.00
MOIL 4,178.16 8.89 1.51 2.17 16.6 23.7 0.00
Binani Zinc 3,211.95 0.00 67.47 0.00 0.0 0.0 0.83
Orissa Minerals 1,491.24 133.12 1.83 21.47 1.6 3.2 0.00
Himadri Chemical 809.97 0.00 0.90 10.96 0.1 3.5 1.29
Indian Metals 759.01 69.07 0.92 5.40 7.3 11.1 1.09
Guj NRE Coke 718.97 0.00 0.42 7.36 4.2 10.9 0.97
Tinplate Co. 577.78 10.95 1.16 4.34 3.9 9.6 0.24
Ashapura Minech. 530.62 5.77 -1.77 5.83 18.5 16.5 0.00
Sandur Manganese 478.63 7.08 1.40 5.69 10.0 11.4 0.00

Futures & Options Quote

 
Expiry Date
291.95 0.70  (0.2%)
Instrument: FUTSTK
Expiry Date: 24 Apr 2014
Open Price: 292.75
Average Price: 290.76
No. of Contracts Traded: 4,093,000
Open Interest: 6,177,000
Underlying: COALINDIA
Market Lot: 1000
Previous Close: 291.95
Day’s High | Low: 293.30 | 287.50
Turnover (Cr.): 119.01
Open Int. Change: -1,604,000.00 ( [20.6]% )
View detailed F& O quotes >>

Key Information

Key Executives:

R Mohan Das , Director (Personnel)  

S Narsing Rao , Chairman & Managing Director  

M Viswanathan , Company Secretary  

Nagendra Kumar , Director (Technical)  


Company Head Office / Quarters:
Coal Bhawan,
10 Netaji Subhas Road,
Kolkata,
West Bengal-700001
Phone : 91-33-22488099
Fax : 91-33-22435316
E-mail : complianceofficer@coalindia.in
Web : http://www.coalindia.in
Registrars:
Karvy Computershare Pvt Ltd
Plot No 17-24
Vittal Rao Nagar
Madhapur
Hyderabad-500081

Fund Holding


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