On behalf of the Board of Directors, I have great pleasure in
presenting to you, the 41st Annual Report of Coal India Limited (CIL)
and Audited Accounts for the year ended 31st March, 2015 together with
the reports of Statutory Auditors and Comptroller and Auditor General
of India thereon.
Coal India Limited (CIL) is a 'Maharatna' company under the
Ministry of Coal, Government of India with headquarters at Kolkata,
West Bengal. CIL is the single largest coal producing company in the
world and one of the largest corporate employers with manpower of
3,33,097 (as on 1st April, 2015). CIL operates through 82 mining areas
spread over eight provincial states of India. Coal India Limited has
430 mines of which 227 are underground, 175 opencast and 28 mixed
mines. CIL further operates 15 coal washeries, (12 coking coal and 3
non-coking coal) and also manages other establishments like workshops,
hospitals, and so on. CIL has 27 training institutes. Indian Institute
of Coal Management (IICM) is an excellent training centre operates
under CIL and imparts multi-disciplinary management development
programmes to the executives. Coal India's major consumers are Power
and Steel sectors. Others include cement, fertilizer, brick kilns, and
a host of other industries.
CIL has eight fully owned Indian subsidiary companies (direct): Eastern
Coalfields Limited (ECL),
Bharat Coking Coal Limited (BCCL),
Central Coalfields Limited (CCL),
Western Coalfields Limited (WCL),
South Eastern Coalfields Limited (SECL),
Northern Coalfields Limited (NCL),
Mahanadi Coalfields Limited (MCL) and
Central Mine Planning & Design Institute Limited (CMPDIL).
In addition, CIL has a foreign subsidiary in Mozambique viz. Coal India
Africana Limitada (CIAL).
The mines in Assam i.e. North Eastern Coalfields is managed directly by
CIL. Similarly, Dankuni Coal Complex is on lease with South Eastern
MCL has three subsidiaries, namely MNH Shakti Ltd., MJSJ Coal Ltd. and
Mahanadi Basin Power Ltd.
a. MNH Shakti Limited
MNH Shakti Ltd was incorporated on 16th July, 2008 as a Joint Venture
Company of MCL. MNH Shakti Ltd had been formed for operation of
Talabira OCP block where MCL is holding 70% share, Neyveli Lignite
Corporation Ltd 15% share and Hindalco Industries Ltd. balance 15%
share. The Share Capital of MNH Shakti Ltd. as on 31-03-2015 was Rs.
85.10 Crore. The Hon'ble Supreme Court of India in its judgment dated
25.08.2014 and order dated 24.09.2014 declared allocation of Talabira -
II and Talabira - III coal blocks allocated to MNH Shakti Ltd. as
illegal and has quashed the allocation.
b. MJSJ Coal Limited
MJSJ Coal Ltd was incorporated on 13th August, 2008 as a Joint Venture
Company of MCL. MJSJ Coal Ltd had been formed for operation of
Gopalprasad OCP where MCL is holding 60% share, JSW Steel Limited and
JSW Energy Limited 11% share each and Shyam Metalics and Energy Ltd
(formerly known as Shyam DRI Power Limited) and Jindal Stainless
Limited 9% share each. The paid up Share Capital of MJSJ Coal Ltd. as
on 31-03-2015 was Rs. 95.10 Crore. The Hon'ble Supreme Court of India
in its judgement dated 25.08.2014 and order dated 24.09.2014 declared
allocation of Utkal-A coal block allocated to MJSJ Coal Ltd. as
illegal and has quashed the allocation.
c. Mahanadi Basin Power Limited
Another Company "Mahanadi Basin Power Limited (MBPL)" was
incorporated on 2nd December, 2011 and certificate for commencement of
business issued by ROC on 06-02- 2012. MBPL had been formed as an SPV
with wholly owned subsidiary of Mahanadi Coalfields Ltd for power
generation of 2x800 MW through Pit Head Power plant at Basundhara
Coalfields. The Share Capital of Mahanadi Basin Power Limited as on
31-03-2015 was Rs. 5 Lakhs.
Subsidiaries of SECL
SECL had incorporated two subsidiary companies viz.
M/s Chhattisgarh East Railway Ltd on 12th March'2013 and M/s
Chhattisgarh East- West Railway Ltd on 25th March'2013 with 64%
holding in each of the subsidiaries for construction of railway lines
for expeditious evacuation of coal.
1. NOTABLE ACHIEVEMENTS DURING 2014-15
a. CIL achieved a production of 494.24 MT of coal, removed 886.53 MM3
of OB and achieved an off- take of 489.38 MT with a growth of
6.88%,9.92% & 3.77% respectively compared to the last year.
b. All subsidiaries achieved a growth in production compared to the
last year. There was an impressive growth in OB removal during 2014-15.
Except MCL, all other subsidiaries had achieved a growth in OB removal.
The negative growth in MCL was on account of land acquisition problems.
All subsidiaries other than BCCL had achieved a growth in off-take
compared to the last year. The negative growth in BCCL was due to less
supply of wagons.
c. ECL came out of BIFR. BCCL was awarded Mini Ratna status.
d. Government of India divested further 10% of its holding in CIL in
January 2015. An amount of Rs. 22,557 crores was realized. This was the
highest divestment amount received by the GoI by selling its stake in
any company till date.
e. CIL Board had approved 7 Coal Projects having an annual capacity of
f. Project Report for setting up of Super Critical Thermal Power
Project (2X800MW) at MCL namely Mahanadi Basin Power Limited was
approved by CIL Board.
2. FINANCIAL PERFORMANCE
2.1 Financial Results (CIL consolidated)
CIL is one of the largest profit making and tax & dividend paying
enterprises. CIL and its subsidiaries had achieved an aggregate pre-tax
profit of Rs. 21,583.92 crores for the year 2014-15 against a pre-tax
profit of Rs. 22,879.54 crores in the year 2013-14.
(Rs. in crores)
Company 2014-15 2013-14
(CIL subsidiaries/ CIL standalone) Profit Profit
ECL ( ) 1782.41 ( ) 1299.28
BCCL ( ) 1154.22 ( ) 2089.01
CCL ( ) 2740.34 ( ) 2525.87
NCL ( ) 3713.47 ( ) 3355.71
WCL ( ) 544.79 ( ) 325.86
SECL (consolidated) ( ) 5659.46 ( ) 7202.40
MCL (consolidated) ( ) 5314.24 ( ) 5429.08
CMPDIL ( ) 39.33 ( ) 34.60
CIL (standalone) ( ) 13651.89 ( ) 15420.47
Sub-Total ( ) 34600.15 ( ) 37682.28
Less: Dividend from Subsidiaries (-) 13011.72 (-) 14406.82
Total ( ) 21588.43 ( ) 23275.46
Adjustment for exchange rate
variation on Current Account
of overseas subsidiary ( ) (4.51) ( ) 0.72
Adjustment for waiver of accrued
interest of BCCL - (-) 396.64
Overall Profit as per Consolidated
Accounts ( ) 21583.92 ( ) 22879.54
CIL as a group had achieved a post tax profit of Rs. 13,726.70 crores in
2014-15 (excluding share of minority loss of Rs. 0.09 crore; previous
year Rs. 0.04 crore) as compared to Rs. 15,111.67 crores in 2013-14.
Highlights of performance
The highlights of performance of Coal India Limited including its
Subsidiaries for the year 2014-15 compared to previous year are shown
in the table below:
Production of Coal (in million tonnes) 494.24 462.42
Off-take of Coal (in million tonnes) 489.38 471.58
Sales (Gross) (Rs./Crores) 95434.76 89216.86
Capital Employed (Rs./Crores) Note- 1 76554.91 74891.87
Capital Employed (Rs./Crores)-
excluding capital work in progress and 71395.54 70576.06
intangible assets under development.
Net Worth (Rs./Crores) (As per Accounts) 40343.33 42391.86
Profit Before Tax (Rs./Crores) 21583.92 22879.54
Profit after Tax (Rs./Crores) 13726.70 15111.67
PAT / Capital Employed (in %) 17.93 20.18
Profit before Tax / Net Worth (in %) 53.50 53.97
Profit after Tax / Net Worth (in %) 34.02 35.65
Earnings Per Share ( Rs.) 21.73 23.92
(Considering Face Value of Rs.10 per share)
Dividend per Share (Rs.) 20.70 29.00
(Considering Face Value of Rs.10 per share)
Coal Stock (Net) (in terms of No. of
months Net Sales) 0.79 0.72
Trade Receivables (Net) (in terms of
No of Months of Gross Sales) 1.07 1.11
Capital employed = Gross Block of Fixed assets (including capital work
in progress and intangible assets under development) less accumulated
depreciation plus current assets minus current liabilities.
Transfer to Reserves
During the year 2014-15, a sum of Rs. 2578.50 crore was transferred to
General Reserve out of CIL (Consolidated) profits. This includes
transfer of Rs. 1338.34 crore out of CIL (Standalone) profits.
2.2 Dividend Income and Pay Outs (CIL- standalone)
While the financial statements of both CIL standalone and CIL
consolidated are presented separately, it is only the CIL (standalone)
company which is listed and relevant for dividend payment to its
shareholders. The dividend to its shareholders are paid out of CIL's
standalone income, the major part of which constitutes of the dividend
income received by it (CIL- standalone) from its five profit making
subsidiaries i.e. CCL, NCL, WCL, SECL and MCL.
The breakup of such dividend (interim final) received and accounted
for during the year from different subsidiaries are given below:-
During the year Coal India Limited (standalone) has paid a total
dividend (by way of interim dividend) of Rs. 13074.88 crores @ Rs. 20.70
per share (Rs. 18317.46 crores @ Rs. 29.00 per share) on 6316364400 number
of Equity Shares of Rs. 10/- each fully paid up. Out of above total
dividend, the share of Govt of India was Rs. 10414.14 crores and for
other shareholders, Rs. 2660.74 crores. (Previous year - Govt of India -
Rs. 16485.71 crores and other shareholders - Rs. 1831.75 crores)
2.3 Observation of the Statutory Auditors
The Statutory Auditors have given their observations on the standalone
and consolidated accounts of the Company for the year ended 31st
March'2015. The Auditors' observations in terms of Section
134(3)(f)(i) of the Companies Act'2013 and Management Explanation are
enclosed as Annexure-V and Annexure-XV(B).
3. COAL MARKETING
3.1 (a) Off-take of Raw Coal
Off-take of raw coal continued to maintain its upward trend and reached
489.377 million tonnes for fiscal ended March 2015, surpassing previous
best of 471.581 million tonnes achieved during the last year, i.e., an
increase of 3.8 % over the last year. The overall raw coal off-take
achieved was 94.1 % of the Annual Action Plan Target.
Company-wise target vis-a-vis actual off-take for 2014-15 and 2013-14
are shown below:
From the above, it may be seen that ECL had not only exceeded its
target but also achieved a positive growth compared to the last year.
Barring BCCL, all other coal companies had registered a positive growth
Off-take suffered mainly due to:
- Transportation constraints resulting from seizure of transport
trucks for election purposes in almost all the coal companies during
the General Election in the First Quarter.
- Major accident near Latehar affecting traffic movement in
Mughalsarai section for 3 days during September'14.
- Production constraint and ageing infrastructure caused frequent CHP
breakdown at various projects at NCL, delay in renewal of
transportation contracts at the coal companies, Local agitation / Law &
order problem at CCL/ MCL.
- Restriction in transportation at MCL during 11AM to 3 PM by Odisha
Govt, in the months of May-June.
- Restriction imposed by District Administration for transportation
of coal between 9.00 AM to 5.00 PM resulting in loss of 4 to 5 rakes
per day at MCL-Ib Valley.
- Inadequate availability of wagons at MCL-Ib Valley, SECL-Korba and
at ECR-served sidings of BCCL/CCL. Coal transportation constraints at
SECL due to the delay in finalization of ESM contracts & transportation
constraints at WCL.
- Heavy rain during monsoon and effect of Cyclone Hud-Hud at NCL, MCL
and CCL during October'14.
- Strike by Trade Union affecting off-take & loading during
January'15 and railway restriction for up-country movement /
inadequate availability of wagons during the 4th quarter.
Sector-wise break-up of dispatch of coal & coal products in 2014-15
against the target and last year's actual is given below:
In order to cater to the enhanced requirement of power sector due to
decrease in stock at power plants and increase in number of power
plants carrying critical coal stock, quantity offered through e-
auction was regulated leading to negative growth in other sector.
3.2 Dispatches of coal and coal products by various modes
Dispatches of coal and coal products during 2014-15 went upto 489.982
million tonnes from 471.484 million tonnes registering a growth of 3.9
%. Overall dispatch by Non-Rail mode had been almost 101% of the
target. Growth in despatches via Rail mode was 2.7 % whereas in the
overall Non-Rail mode it increased by 5.4 %. Road despatches increased
by 8.2% over the previous year. Movement by MGR was 1.5% above the last
Dispatch of coal and coal products by various modes for the years
2014-15 and 2013-14 is given below:
3. 3 Wagon Loading
Overall wagon loading materialization was 89.1 % of the target. This
was achieved due to sustained efforts and regular coordination with
railways at various levels. The increase in loading over the last year
was of 4.3 rakes per day. Company-wise performance showed that WCL
achieved its target. ECL, BCCL, CCL, WCL, MCL &NEC exceeded last
year's level of loading.
Wagon loading suffered mainly due to intermittent law and order problem
at CCL and MCL, delay in finalization of ESM road transport contracts
at SECL, transportation constraints at WCL and CHP problem at various
projects of NCL.
3.4 Consumer satisfaction
i. In order to ensure enhanced customer satisfaction, special emphasis
was given to quality management. Various steps are taken to monitor
quality right at the coalface apart from bringing further improvements
in crushing, handling, loading and transport system.
ii. CIL has built coal handling plants for a capacity of about 296 MT
per annum so as to maximize dispatches of crushed/sized coal to its
consumers. In addition, Washeries at BCCL, CCL, WCL and NCL have
adequate crushing / sizing facilities to the tune of about 36.8 million
tonnes.CIL has also initiated action to establish 15 more coal
washeries with combined capacity of 112.6 Mty.
iii. Measures like picking of shale/stone, selective mining by
conventional mode as well as by surface miners, adopting proper
blasting procedure/technique for reducing the possibility of admixture
of coal with over-burden materials and improved fragmentation of coal
etc. are being taken.
iv. Surface Miners have been deployed by CIL for selective mining at
some of the OCP mines to improve the quality of coal. Action is being
taken for deployment of more surface miners in other OCP mines where
geo-mining condition permits their usage. Already 56 Surface Miners
have been deployed in CIL at opencast mines which are working
v. Joint sampling system is in vogue for major consuming sectors e.g.
power utilities, steel, cement, sponge iron covering more than 95% of
total production of CIL. Large consumers having annual quantity of 0.4
MT or more and having FSA have been covered under sampling.
vi. From 1st October, 2013, independent 3rd party sampling and analysis
was introduced for more transparency in the system. Subsidiary coal
companies have procured 121 Bomb Calorimeters for more accurate and
transparent results of analysis of coal samples. The sampling and
analysis are being done in the presence of customers as per provision
of FSA at loading end, and based on the results, the customers are
paying coal bills as per the analyzed grades. During 2014-15 the
achievement of grade conformity in respect of sampling and analysis was
to the tune of 97.17% in respect of supplies to power sector.
vii. Pursuant to the decision taken in the meeting with Association of
Power Producers during June 2014, on and above the existing system of
coal sampling at the loading end, it was decided that power producers
may also engage their Third Party Agency from a list of 25 empanelled
agencies for taking part in drawing coal samples and analyzing the
same. In view of the above, PUs / IPPs have started selecting agencies
w.e.f. December' 2014 onwards and finalized them except a few who
are in process of finalizing.
viii. Electronic weighbridges with the facility of electronic printout
have been installed at rail loading points to ensure that coal
dispatches are made only after proper weighment. For this purpose,
Coal Companies have installed 157 rail weighbridges in the Railway
Sidings and 569 road weighbridges for weighment of trucks. Coal
companies have also taken action for installation of standby
weighbridges to ensure 100% weighment.
ix. 24 Auto Mechanical Samplers (AMS) are also working in subsidiary
coal companies for coal sampling for the bulk consumers eliminating
chances of biasness in the sampling process. Procurement of further AMS
is under process. Thought process for installing online analyzers in
new washeries on conveyor belts for proper quality management has also
x. In order to ensure consumer satisfaction and resolve consumer
complaints, special emphasis has been given to quality management and
redressal of consumer complaints. Percentage of complaint resolved was
99.44% [April 2014 to March 2015].
xi. CIL has taken initiative and is trying its best to get NABL
[National Accreditation Board for Testing and Calibration Laboratories]
accreditation for main laboratories of different subsidiary coal
companies. One lab at MCL has been accredited by NABL in addition to
the earlier one existing at WCL.
3.5 Marketing of Coal
Status of execution of Fuel Supply Agreements and performance of
Supply of coal was made to various consumers including Power Sector
under the applicable provisions of the New Coal Distribution Policy
(NCDP). Due to the overall deficit in availability of coal considering
the projected coal production from domestic sources and commitments
made through signing of FSAs/issuance of Letter of Assurances (LOA)
supplies under the FSAs has been pegged at various levels of
commitments (trigger). Power sector being the major consuming sector
having significant importance in the economy, supplies to power sector
has been guided as per the government directives and polices.
(i) For power stations commissioned on or before 31.03.2009, a quantity
of 306 million tonnes had been considered to be supplied through
bilateral legally enforceable Fuel Supply Agreements (FSA) with a
trigger level of 90%. The total quantity covered under FSA against the
allocation as on March'15 was 305 million tonnes.
Apart from the above, 180 Letter of Assurances has been issued to power
plants by subsidiary companies of CIL, as per the recommendations of
various SLC (LT) meetings for a quantity of about 426.86 Million
tonnes. Further as per Presidential Directives dated 16-4-2012 and
dated 17-7- 2013 the list of Power Plants and aggregate capacity were
revised. A total 173 TPPs were listed with an aggregate capacity of
78535 MW. Till 31.3.2015, 161 FSAs have been signed with Power Plants
for an aggregate capacity of 74275 MW. However, TPPs having capacity of
57730 MW have furnished long-term Power Purchase Agreement (PPA) and
qualify for commencement of coal supply subject to commissioning etc.
After resolving issues with NTPC, NTPC has signed FSA for its power
plants for plant capacity of 13510 MW both for its owned and Joint
(ii) In addition, in terms of Presidential Directive dated 17th
July'13, coal is being supplied to power houses of 4660 MW having no
fuel linkage with CIL on best effort MoU basis on the condition that
such supplies do not adversely affect the availability of coal for the
identified plants of 78000 MW capacity.
(iii) Out of 1208 valid linked units other than power and steel plants
with eligible FSA quantity of 76.24 million tonnes, 762 units have
operative FSAs for 50.92 million tonnes. FSAs of the existing consumers
were signed in 2008.Tenure of these FSAs being 5 years; many of the
FSAs were renewed.
(iv) For supply of coal to SME sector, 8 million tonnes was earmarked
by CIL for allocation to agencies nominated by the State Govt's/
UT's. 14 states / UT's had sent nomination of 18 state agencies for
the year 2014-15 out of which 15 state agencies signed FSAs for 3.45
million tonnes and drawing coal.
(v) After implementation of NCDP, 417 LOAs were also issued to
consumers of sponge iron, CPP and cement as per the recommendations of
various SLC (LT) meetings for a quantity of 63.86 million tonnes per
annum. Of these, 333 FSAs have been concluded till date for a quantity
of 45.01 million tonnes per annum. Out of these, 226 FSAs are active as
on date for a quantity of 28.03 million tonnes per annum.
(vi) As per the provisions of FSA, CIL undertook import of coal for the
power plants opted for taking the same through CIL during the 3rd and
4th quarter of 2014-15. Out of the total quantity firmed by the power
plants for about 5 LT, till March 2015,supply was made for 3.3 LT and
balance supply was about to be completed.
(vii) Under Forward e-Auction scheme during the year ended March'15,
quantity allocated was 3.593 million tonnes as against 4.094 million
tonnes allocated during the last year. During the period under review,
45.211 million tonnes of coal was allocated under spot e- auction to
the successful bidders as against 58.125 million tonnes of coal
allocated during the last year. The notional gain through Spot
e-Auction over & above the notified price was 63.7% during 2014-15.
3.6 Coal Beneficiation
At present, CIL has a total coal washing capacity of 36.8 million
tonnes per year (Mty) through 15 existing washeries, of which 12 are
coking and 3 non coking with 23.30 Mty and 13.5 Mty capacity
respectively. In addition to this, CIL plans to set up further 15
washeries having state-of-the-art and innovative technologies in the
field of coal beneficiation with an aggregate throughput capacity of
112.6 Mty. Out of these, 6 are planned to wash coking coal with a
cumulative capacity of 18.6 Mty, 3 of these being at various stages of
construction and LOI for 2 more being in the offing. LOA/LOIs for 3 of
the balance 9 non-coking coal washeries have been issued.
4.5 Future Outlook
CIL has envisaged a coal production of 908.10 Mt in the year 2019-20
with a CAGR of 12.98 %. In 2015-16, the target of coal production was
550.00 Mt with an annualized growth of about 11 %. In the terminal year
of XII Plan (2016-17), the envisaged coal production is revised to
597.60 Mt against 615.00 Mt originally projected in XII Plan document.
The capital expenditure for the year 2015-16 has been projected at Rs.
5990.50 crores. In addition there is also an ad-hoc provision of Rs. 500
crores. for acquisition of coal assets abroad and development of coal
blocks in Mozambique. In addition, company planned to invest Rs. 4150
crores in various infrastructure projects during 2015-16.
5. POPULATION OF EQUIPMENT
Population of Major Opencast Equipment (Heavy Earth Moving Machinery)
as on 1.4.2015 and on 1.4.2014 along with their performance in terms of
availability and utilisation expressed as a percentage of CMPDI norm is
8. PROJECT FORMULATION
8.1 Preparation of Reports: As prioritized by subsidiary companies of
Coal India Limited, preparation of Project Reports (PR) for new/
expansion/re-organisation mines was carried out by CMPDI during the
year 2014-15 for building an additional coal production capacity to the
tune of 116 Mty. During the period, a total of 269 reports were
prepared including 16 Geological Reports, 30 Project Reports, 174 Other
Reports (includes 2 Master Plans of Coalfields and 3 Operational
Further expert consultancy services were also provided in the field of
Environmental Management and Monitoring, Remote Sensing, Energy Audit
and Benchmarking (Diesel & Electrical) , Physico-mechanical tests on
Rock and Coal Samples, Subsidence Studies, Strata Control,
Non-Destructive Testing (NDT), Controlled Blasting & Vibration Studies
and Explosive Utilisation, Ventilation/Gas Survey of UG mines, Mining
Electronics, Petrography and Cleat Study on coal samples, Coal Core
Processing & Analysis, Washability tests, Soil Erosion Study, Slope
Stability Study, Effluent/Sewerage Treatment Plants, etc.
Mining Projects: 49 coal mining projects are running behind the
schedule due to the delay in acquisition of land, associated R&R issues
in addition to the delay in obtaining forestry and environmental
clearances. In addition, 33 projects are running behind the schedule
due to lack of Railway Infrastructure facilities for coal evacuation,
other problems such as delay or discontinuance of work by contractor,
non participation in tender, law and order problems etc.
Non Mining Projects
Majority of 13 non mining projects are running behind the schedule due
to discontinuance of work by contractor, law and order problem in
addition to the delay in acquisition of land and associated problems of
rehabilitation and grant of environmental & forest clearances.
8.3 Projects Sanctioned (Costing Rs. 20 Crores & above)
a) No advance action proposal has been sanctioned during the year
b) Projects sanctioned by CIL Board.
7 coal mining projects for an ultimate capacity of 73.42 Mty and a
total capital investment of Rs. 7951.17 Crores have been sanctioned by
CII Board during the year 2014-15
8.5 Steps taken to Achieve One Billion Coal Production in 2019-20
One Billion Tonne production essentially is a synergic effort with coal
bearing states and railways to access the resources and speed up
logistics for coal evacuation.
Coal India has decided to put its best foot forward with the help of
all concerned agencies and take its production into higher growth
trajectory. Contribution from identified projects will be 908 Million
Tonnes and identification of projects for the balance quantity is in
Group wise Production from Projects
Existing coal projects are envisaged to contribute about 165 Million
Tonnes (MT), projects under implementation are likely to contribute 561
MT. Future projects are planned to produce 182 MT during the year
Contribution from Subsidiaries
Projected contribution from MCL and SECL will be to the tune of 250 Mt
and 240 Mt respectively during the year 2019-20. Production
contribution from the subsidiary companies during the year 2019 - 20
have been projected as under:-
Eastern Coalfields Limited - 62 MTs;
Bharat Coking Coal Limited - 53 MTs;
Central Coalfields Limited - 133 MTs;
Northern Coalfields Limited - 110 MTs;
Western Coalfields Limited - 60 MTs;
South Eastern Coalfields Limited - 240 MTs;
Mahanadi Coalfields Limited - 250 MTs.
The dream of providing 1 Billion Tonne of coal to the Nation will be
achieved only through the concerted efforts of CIL, Railways and State
Governments. Three critical railway lines, mechanization through latest
technology, upgrading skills of employees, speedy acquisition of land,
expeditious environmental and forest clearances and fast track state
level clearances are crucial for realization of 1 Bt coal production by
(I) Critical Railway Links - Collaboration with State Govt. & Railways
There are a few coalfields in the country which have huge production
potential but are bereft of rail linkages for evacuation of coal
produced. Among these, 3 rail lines linked to CCL (Jharkhand), MCL
(Odisha) and SECL (Chhattisgarh) are critical and expected to play a
key role in evacuation of coal.
To monitor and speed up the commissioning of these three rail links
'Special Purpose Vehicle' (SPVs) have been formed in tripartite
partnership among Ministry of Railways, Ministry of Coal and the
respective State Governments. IRCON and RITES Limited will have a major
role in developing and maintaining following three rail links and other
rail dispatch logistics like railway sidings.
(II) Technology Development
(a) Exploration capacity is planned to be augmented with more use of
hydrostatic drills, geophysical loggers, 2D/3D Seismic Survey
Technology and Optimization of number of coring boreholes based on the
complexity of geology of the block.
(b) Introduction of high capacity equipment, Operator Independent Truck
Dispatch Systems, Vehicle Tracking System using GPS/ GPRS, CHP and
SILOS for faster loading and monitoring using laser scanners have been
planned to augment coal production from opencast mines.
(c) Introduction of Continuous Miner Technology on large scale, Long
Wall Technology at selected places, Man Riding system in major mines
and Use of Tele - monitoring techniques have been envisaged to increase
production from underground mines.
(III) International Collaboration - Mine Developers & Operators (MDO)
A Model Contract Agreement has been approved by CIL Board and
circulated to subsidiary companies for implementation. This will help
infusion of new technology and efficiency in CIL coal mining projects.
(IV) Role of HR
HR division is charting out a plan of recruiting multi-disciplinary
professional skill upgradation of existing employees and identifying
areas of improvement etc.
Other Improvement Areas
(i) Coal Washing - A step towards quality improvement
To make the product better quality, CIL has decided to bring in
consistency in quality by setting up of 15 coal washeries of which 6
are coking coal and 9 non coking coal with a total proposed washing
capacity of 112.6 million tonnes / year.
(ii) System Improvements
Introduction of e-procurement of equipment and spares, e-tender of work
and services, implementation of Coal Net, establishment of
connectivity, revision of guidelines and manuals, use of GPS for
monitoring operational efficiency in road transport of coal have been
planned to improve the overall system.
9. CONSERVATION OF ENERGY
(i) CIL's subsidiaries have undertaken the following measures,
interalia to conserve energy:
- CMPDIL has undertaken energy conservation studies in 2014-15 and
conducted Diesel Audit & Benchmarking as well as Electrical Audit &
Benchmarking in selected opencast mines situated in different
subsidiaries of CIL by BEE accredited Energy Auditors. The study
revealed that there is an aggregate saving potential of 18420 kilo
litres / year in diesel consumption and 760 lakh units / year in
electric power consumption and action has accordingly been taken in
line with the recommendations of the above study.
- Project-wise specific consumption of diesel is monitored compared
to benchmarking for selected opencast projects (76) of different
subsidiaries of CIL.
- Power factor above 95% is maintained during 2014-15 by suitably
placing power capacitors.
- Energy efficient LEDs are widely used for better conservation of
- Auto-timer switches for street lights are in use in mine premises,
CHPs, residential areas etc. which further adds saving in power
- Power supply systems have been re-organized in suitable places by
laying cables through bore holes in UG mines to reduce power losses.
- Various energy conservation measures like procurement of energy
efficient lights and fittings, higher starred rating ACs, installation
of energy meters / power factor meters / demand controllers etc. for
monitoring and control of energy, elimination or reduction of stage
pumping as far as practicable, energy conservation measures in HEMM
etc. have been taken and general awareness propagated among all
concerned for efficient use of energy.
- Demand side management is done by improving load factor and
limiting maximum demand wherever practicable by staggering avoidable
load from peak hours to off-peak hours.
(ii) In addition to the above, CIL is also pursuing use of alternative
energy sources. Various steps have been taken for utilizing solar power
as an alternate source of energy, some of which are as stated below:
- Possible locations have been identified for installation of
roof-top solar plants over service building, workshop, hospital,
canteen, guest house etc. at different subsidiaries of CIL.
- At present, one 2.016 MWP grid-connective solar power plant has
been commissioned at MCL HQ premises on 13.10.2014.
- A roof top solar plant (grid-connective) of 200 kwp capacity has
been installed on 01.09.2014 in CMPDIL Campus, Ranchi.
- One roof top grid-connective solar plant of 140 kwp capacity has
been installed at CIL's corporate office building at New Town,
11. CAPITAL STRUCTURE
The authorized share capital of the company as on 31.03.2015 was Rs.
8904.18 crores, distributed between Equity and Non-cumulative
redeemable preference shares as under:
(i) 800,00,00,000 Equity Shares of Rs. 10/- each (Previous Year
800,00,00,000 Equity Shares of Rs. 10/- each) Rs. 8000.00 crores
(ii) 90,41,800 Non-cumulative 10% redeemable Preference Shares of Rs.
1000/- each (Previous Year 90,41,800 Non-cumulative 10% Redeemable
Preference Shares of Rs. 1000/- each) Rs. 904.18 crores
Total Rs. 8904.18 crores
Listing of shares of Coal India Limited in Stock Exchanges:
Pursuant to divestment of 10% of total equity shares held by Hon'ble
President of India (Govt. of India), to the public, the shares of Coal
India Limited is listed in two major Stock Exchanges of India, viz.
Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on and
from 4th November, 2010.
During F.Y. 2013-14, Govt. of India had further divested 0.35% of total
Equity Shares equivalent to 22037834 number of equity shares by way of
placement of such shares in Central Public Sector Exchange Traded Fund
Further Divestment by Govt. of India through OFS:
Govt. of India further divested 631636440 number of equity shares i.e.,
10% of the total share capital, on 30.01.2015 by way of Offer For Sale
(OFS) route through Stock Exchanges. Post such divestment, Govt. of
India holds 79.65% of the total equity share capital as on 31.03.2015.
13. INTERNATIONAL CO-OPERATION
Coal India is envisaged for foreign collaboration with a view to:-
- Bring in proven and advanced technologies and management skills for
exploiting UG and OC mines and coal preparation.
- Exploration and exploitation of Methane from Coal bed, abandoned
mine, ventilation air, shale gas, coal gasification etc.
- Locating overseas countries interested in Joint Venture in the
field of coal mining with special thrust on coking coal mining.
The priority areas included acquisition of modern and high productive
underground mining technology, introduction of high productive opencast
mining technology, working in underground in difficult geological
conditions, fire control and mine safety ,coal preparation, application
of 3D seismic survey for exploration , extraction of coal bed methane,
coal gasification, application of Geographical Information System,
satellite surveillance, environmental control, overseas ventures in
CIL would endeavour to acquire suitable technology through
international bidding. Bilateral cooperation may also be encouraged for
locating availability of cost effective and latest technologies in the
aforesaid areas. CIL, therefore, has been following both the routes.
Following are the details of activities that took place with various
countries during 2014-15.
Status of on-going projects under Indo-US CWG:
a) Development of Coal Preparation Plant Simulator:
The identified US consultant M/s Sharpe International LLC, USA (SI) was
awarded the work in October 2009 for development of Coal Preparation
Plant Simulator. Total work was split into 18 activities, out of which
11 activities were completed and payment to the tune of 40% value had
been released in line with the provision of the contract. Later in
October 2013, the SI expressed their inability to complete the work.
The US representatives were requested to take up the matter with M/s
Sharpe for a meaningful conclusion of the project. The US side has
advised to contact Mr. Carl Jacobson in this regard. The issue has been
taken up with Mr. Carl Jacobson to obtain his willingness to complete
the project in accordance with the existing contract.
b) Cost Effective Technology for Beneficiation and Recovery of Fine
The US DOE had identified Virginia Tech University (VTU) for
establishing an efficient technique for beneficiation & dewatering of
Indian coking coal mines through testing of coal samples in lab and
pilot plants at VTU for identification of state-of-the-art technologies
based on which a demonstration plant was to be installed in Sudamdih
washery in BCCL. A joint project proposal was drawn and approved by CIL
R&D Board in December'2010. The VTU, however, expressed its inability
to sign an international agreement and as such the project could not be
started. During the 10th Indo-US CWG meeting in New Delhi on 10th
March 2014, the US representatives were requested to take up the matter
with VTU for meaningful conclusion of the project. The US side has
advised to contact Dr. Roe Hoan Yoon of Virginia Tech for further
discussion in this regard. The issue has been taken up with Dr. Roe
Hoan Yoon to obtain methodology for execution of the assignment.
New Areas of Collaboration
a) Underground Coal Gasification (UCG): UCG is one of the key areas
under Indo-US collaboration. A project brief for capacity building in
the field of UCG development has been sent to MoC for consideration
under India-US Coal Working Group, for the development of UCG in CIL
command area. A demonstration project for commercialization is being
contemplated under R&D effort by CMPDI/CIL. The project will be taken
up subject to the competent approval.
b) Planning large capacity opencast mines: National Energy Technology
Laboratory (NETL), USA has been entrusted with the responsibility for
identifying suitable US agencies for cooperation in this area. NETL has
communicated to Norwest. As advised by the US side, Norwest Corporation
and Art Sullivan, were contacted by email on 8th September 2014.
Response from both was received. Preliminary information on the subject
has been received from Art Sullivan, and further talks are in progress.
CMPDI is in the process of preparing a proposal with Art Sullivan Mine
Services, for jointly working on 'Mine Safety, Occupational Health
and Risk Management' in large opencast coal mines.
c) Projects on sustainable mine closure activities and mining wasteland
to be utilized as a source of livelihood for local community were
proposed to be carried out with the help of the US agencies. For this
purpose, a technical presentation was made by CMPDI on 10th March, 2014
in Delhi and possible areas of cooperation were discussed. It was
advised by the US Side to contact Norwest Corporation & Art Sullivan
Mine services for further assistance. Response from Wanda I. Burget,
VP, Environmental Services, Norwest Corporation was received vide their
e-mail dated 18.09.2014. As desired, details provided to them by e-mail
on 31st December 2014. Further, response from them was again received
vide e-mail dated 08.01.2015. As desired by Norwest Corp, the area of
co-operation were identified and communicated. Norwest Corp has been
requested vide our e-mail dated 27.02.2015 for preparing a formal
proposal with cost estimates.
Status of ongoing projects
A proposal titled "Introduction of a new underground mining
technology at North-East Coalfields in Assam" was put to Indo-EU
Working Group on clean coal technology for consideration in 2012. The
feasibility study to design a suitable mining technology and operation
was awarded to Spanish Consortium led by AITEMIN. AITEMIN has already
started their work since December 2013. The members from Spanish
Consortium visited Tipong UG mine of NEC, Assam during 10th - 14th
February 2014. During the visit, they had detailed discussion with
concerned CMPDI & NEC authorities and collected necessary
data/information regarding the aforesaid work. The Feasibility Study
Report, as reported by AITEMIN, has already been submitted to European
Commission on 10th October.'14 according to the contract terms.
However, the same is yet to be received at CMPDI.
New Areas of Collaboration
During 8th India-EU CWG meeting held in Chennai from 28th - 29th
November'13, a presentation was made by CMPDI on reclamation
practices, land management and utilization of mine voids for storage of
mine water which is generally of good quality. Technical knowhow from
EU was sought to bring back the post-mining land use pattern as
existing before the mining and utilization of the same for income
generation for the local community. A presentation on the requirement
of the technical assistance was made by CMD, CMPDI during the 9th
India-EU CWG meeting held in Germany from 10th - 11th September.'14.
Further work to be undertaken on collaboration.
VAM project under NCEF, CMPDI, on behalf of CIL, is contemplating to
take up a project on mitigation and utilization of Ventilation Air
Methane (VAM) at Moonidih, BCCL, with CSIRO, Australia under
National Clean Energy Fund (NCEF) of Government of India. A project
proposal for implementation of the project is under consideration. The
project will be taken up subject to competent approval of the
Other activities through international cooperation
a) CMM/CBM Clearinghouse
India CMM/CBM Clearinghouse is a non-profit, non- governmental
organization established under the aegis of Ministry of Coal, Govt. of
India and United States Environmental Protection Agency (USEPA) with an
aim to contribute to the commercial development of CMM/CBM in India.
The clearinghouse was established at CMPDI, Ranchi in November, 2008
with an objective to promote CMM/CBM industry in India. The
clearinghouse functions under the aegis of Ministry of Coal (MoC), Govt
of India and United States Environmental Protection Agency (USEPA).The
term of the Clearinghouse is proposed to be extended for a further
period of 3 years upto November, 2018.
b) Research & Development Activities
i) R&D Project on "Green House Gas Recovery from coal mines and coal
beds for conversion to Energy":
A multi-organization, multi-nation international collaborative project
with 12 participating organizations and 5 countries (India, China, UK,
Slovenia, Slovakia) and funded by European Union Research Commission
(EURC) is being pursued at Moonidih mine of CIL by CMPDI. The project
duration is upto March, 2015.
ii) R&D project on "Assessment of Prospect of shale gas in Gondwana
basin with special reference to CIL areas"
For assessing the potentiality of shale gas in Gondwana basin with
reference to CIL areas, a project with M/s Advanced Resource
International (ARI), USA has been completed in December, 2014. Under
R&D effort it is interpreted that Shale horizons in Jharia coalfield
and East Bokaro coalfield qualify for Shale gas exploration as deeper
zones contain more gas in its pore space because of higher confining
pressures. Moreover, the same is supplemented by pyrolysis data of
14. COAL VIDESH DIVISION
(A) Activities of Coal India Africana Limitada (CIAL), Mozambique.
The prospecting licenses for coal, having numbers. 3450L & 3451L,
covering a total area of 224 square kilometres were granted to CIAL, a
wholly-owned subsidiary of CIL in Mozambique, in 2009. Various
activities related to exploration of the allotted coal blocks
undertaken in 2014- 15 are as follows:
- Surveying for delineation of the coal blocks, borehole collars have
- Completion of Exploration drilling programme in the allocated 2
- 49,541 Mtrs of exploration drilling has so far been completed, of
which 10088 Mtrs and 31,029 Mtrs of drilling in the 1st & 2nd stages
was completed in 2013-14 and 8,423.67 Mtrs in 20 boreholes under 3rd
stage was completed in 2014-15.
- Work under Geo-physical logging programme for 2,387.02 Mtrs in 4
boreholes has been completed.
- Core sample for a total of 98 boreholes have been tested in various
laboratories in India. Analysis results have been received and are
- The existing exploration licenses for two coal blocks in Mozambique
have been extended by Mozambican Government for another 5 years till
- Interim Geological Report has been prepared by CMPDIL. The final
Geological Report of these two allocated coal blocks in Mozambique is
(B) Acquisition of coal assets abroad through global expression of
- Pursuant to adoption of the government policy on acquisition of raw
material abroad by CPSEs by Board of Directors of CIL, a global
Expression of Interest was floated on 27th February 2013 inviting
offers from owners of coal assets abroad or their representatives and
also from investment bankers for acquiring stakes in coal assets.
- Several proposals have been received till 31st March 2015 in
response to the EOI.
- Some of the proposals had been short-listed for in- house due
diligence. Technical review in respect of the short-listed proposals
were presented to the senior management. CIL Board has desired a report
on the regulatory framework in the targeted countries.
- CIL has appointed a legal consultant to advise CIL on the specific
aspect of regulations and rules related to investment in the coal
mining sector in the targeted countries.CIL has at present has
initiated discussions in targeted countries on a possible G2G basis.
CIL has been observing the falling international price (FOB) of thermal
coal and studying its effect on the valuation model of the prospective
(C) Setting up of Apex Planning Organisation (APO) & Apex Training
Setting up of APO & ATO in Mozambique is a project of the Ministry of
External Affairs(MEA),Government of India and to be funded by GoI. Coal
India Limited was nominated as the nodal agency for the execution of
Cost Estimate for the project updated in 2013 indicated an escalation
of cost. Ministry of External Affairs, GoI has indicated that its
financial commitment for setting up of APO & ATO in Mozambique would be
limited to the initial estimate prepared in 2008. Further it has
requested CIL to explore the avenue for funding of the balance amount.
CIL Board has considered the request of MEA and has decided that the
issue of funding of the balance amount for the APO & ATO would be
addressed once the final results of exploration work in the allocated
coal blocks in Mozambique is completed. Meanwhile CIL has suggested
that the funding for the balance amount for this project could be
arranged from other Indian Public Sector companies having active
commercial interest in Mozambique.
15. MASTER PLAN FOR DEALING WITH FIRE, SUBSIDENCE AND REHABILITATION
The Master Plan for dealing with fire, subsidence and rehabilitation in
the lease hold of Bharat Coking Coal Limited (BCCL) and Eastern
Coalfields Limited ( ECL) was approved on 12th August 2009 by the Govt.
of India with an estimated investment of Rs. 7,112.11 crores for Jharia
Coalfields and Rs. 2,661.73 crores for Raniganj Coalfields.
Implementation period has been delineated as 10 years.
During the FY 2014-15, High Powered Central Committee meeting was held
on 26/08/2014 under the chairmanship of the Secretary (Coal),MoC to
review the activities of implementation of Master Plan.
Jharia Rehabilitation and Development Authority (JRDA) is the
implementing agency for rehabilitation of non- BCCL people under the
Master Plan whereas Asansol Durgapur Development Authority (ADDA) a
state Govt. organization has been identified as implementing agency
for Rehabilitation of Non-ECL houses.
A. Summarized Status of Implementations of Raniganj Master Plan
Demographic Survey work has been completed for all 126 sites. The final
list has already been published which contains 44598 households. 43087
numbers of photo identity card (PIC) were distributed out of 44598
Revalidation of land acquisition proposal at Bonjemehari for 1300 Acres
of land in Salanpur block and at Gourangdih for 2300 Acres of land in
Barabani block is under consideration of West Bengal State Govt.
ECL has given 'No Objection' for rehabilitation in the
available vested land at mouza Namokesia, (31.42 Acres) at Salanpur
Block which is non-coal bearing area and mouza Bijoynagar (26 Acres )
at Jamuria Block where coal is available at more than 600 mtrs depth.
It has been informed by ADDA that the above two sites are made
available for rehabilitation purpose by State Govt and barbed wire
fencing has been started at the site Bijoynagar.
Further ECL has given NOC for vested land in Kulti,Barabani and Jamuria
blocks where coal is of very low grade or coal is found at a depth of
more than 600 metres. ECL has issued NOC for a total area of 236.42
acres of vested land for rehabilitation purpose to ADDA.
i) Diversion of Railway line from unstable location:
Andal-Sitarampur Railway line of Salanpur area- As regard to diversion
of Andal-Sitarampur Railway line of Salanpur Area, the work has been
awarded to M/S
RITES for preparation of Feasibility Study Report (FSR) and Detailed
Project Report (DPR). Survey work of around 26 km track line has been
completed and M/s RITES is finalizing the report in consultation with
ii) Diversion of NH-2 and District Board (DB) Road:
ECL has pointed out that even after repeated communication with
National Highway Authority of India (NHAI) at different levels for
diversion of National Highway (NH-2), response from NHAI is not very
encouraging and the issue has been referred to Ministry of Coal for
taking up the issue with Ministry of Surface Transportation.
Detailed Project Report diversion of DB road at Salanpur Area and
Satgram area and land acquisition proposals are awaiting State
iii) Diversion of IOCL pipeline:
For diversion of Indian Oil Corporation Limited (IOCL) pipeline
National Institute of Rock Mechanics (NIRM),
Bangalore has conducted the survey work to assess the stability of
pipeline. NIRM submitted survey report and subsequently NIRM was
requested to conduct 2nd tier geophysical survey to assess the
stability of 750 metres most vulnerable length of pipeline. NIRM have
completed the 2nd phase of survey and submitted their report. NIRM will
submit their final report after joint meeting with IOCL.
B. Summarized Status of Implementations of Jharia Master Plan
Out of total of 595 nos. of fire affected / subsidence prone sites /
areas required to be surveyed, CIMFR, ISM and Whiz Mantra have
completed demographic / socio-economic survey at 569 sites in which
84497 families have been identified. Photo Identity Cards are
distributed for 42652 families.
Status of land acquisition by JRDA for rehabilitation sites
About 1105 ha. land (say 2730 Acres) would be required for resettlement
of non-BCCL families.
- Proposals for acquisition of 352.27 acres of Raiyati land have been
sent to DLAO & 176.23 acres to the Addl. Collector Dhanbad by JRDA.
- Delivery for possession of Raiyati land for 120.82 acres at Lipania
and 7.99 acres at Dhokra has been taken over by JRDA from DLAO, Dhanbad
on 28.02.13. The physical possession of land is yet to be taken.
- Delivery for possession of Raiyati land for 5.12 acres at
Duhatand-, 2.23 acres at Manaitand and 4.76 acres at Dhanbad has been
taken over by JRDA from DLAO, Dhanbad on 15.04.13.
- NOC of 86.44 acres of vacant land in Bhuli Township and 849.68
acres of non-coal bearing land in and around Belgoria Township
belonging to BCCL has been given by MoC which has been communicated to
JRDA along with all the required mouza plans, for developing new
Townships by JRDA.
Status of BCCL houses under Master Plan For this purpose, 344 houses &
1152 houses have been built in non-coal bearing zone & Families from
fire & subsidence places have been shifted to these houses.
Construction of 4080 triple storied quarters (340 Blocks each of 12
units) is in progress. Construction of 4020 triple storied quarters
(335 Blocks each of 12 units) is awarded. Tender for construction of
2248 units (B,C&D type) triple storied quarters and construction of
4008 units triple storied miners quarters with R.C.C. framed structure
is in process . Status of Non-BCCL houses (54159 nos.) under Master
Plan 2352 houses have been constructed in Belgoria rehabilitation
Township ''JhariaVihar" in which 1169 families have shifted till
Status of Fire Schemes
Reduction in Fire Area:
- The coal mine fire survey/ study was instituted by BCCL through
National Remote Sensing Centre (NRSC), ISRO, Deptt. of Space, Hyderabad
in Aug., 2013 for delineation of surface coal fires in Jharia
Coalfield. NRSC has submitted their report in April' 2014, in which
they have concluded that the present fire area in the coalfield is only
2.18 sq.km. which included both over burden dump fire and active fire.
NRSC has deduced these findings from the State of Art, Satellite based
- Further NRSC has conducted delineation of land subsidence in Jharia
Coalfield, Jharkhand as R & D component using space based differential
interferometric technique. The final report is submitted in
Sept'2014.From time series DInSAR observation and field verification,
the land subsidence map of Jharia coalfield (JCF)were generated for
2007-2010 time period. 70 areas were detected which are prone to land
subsidence/ subsidence affected from time series DInSAR observations
due to mining activities, coal fire or by the combination of both. Thus
the subsidence map includes areas which are under ongoing subsidence at
present & subsided during observation. Out of 70 sites, 27 sites are
affected with fire and thus fire induced subsidence.
Disbursement of total fund by CIL for implementation of Master Plan
after approval of Master Plan
BCCL till March, 2015 : Rs. 511.85 crores
ECL till March, 2015 : Rs. 160.79 crores.
16. Environmental Management
16.1 Environmental Impact Assessment (EIA)/Environmental Management
38 environmental clearances for 107.36 Mty capacity were obtained from
MoEF for different projects/Group of Mines of CIL during the year
16.2 Pollution Control Measures and their Efficacy
Measures are being taken to ensure that mining and coal beneficiation
operations have a minimum impact on the surrounding air quality, water
quality, noise level and soil quality, hydro-geology, land use pattern
and nearby population.
Technical and biological reclamation of mined out areas and external
overburden dumps are being taken by planting native species of plants
for restoring the ecology.
The level of pollutants is being monitored regularly as per the
statutory guidelines to ascertain the efficacy of pollution control
measures and for taking corrective actions as required.
16.3 ISO 14001 Certification
The implementation, certification and re-certification of different
units of CIL against ISO:14001 (Environmental
Management System) is continuing. As on 31.03.2015, 51 units and two
companies (MCL & NCL) are certified under ISO:14001 standard.
With the success of a companywide Integrated Management System (IMS) in
MCL & NCL, the implementation of IMS was started for ECL, CCL & BCCL.
It is expected that by April, 2016 ECL, BCCL and CCL would be able to
get certification for companywide IMS which includes ISO:14001.
16.4 Monitoring of land reclamation of OC mines through remote sensing
Satellite surveillance system has been introduced for land reclamation
monitoring of all the opencast coal mines for compliance of MoEF
stipulations as well as for progressive mine closure monitoring. So far
land reclamation monitoring based on high resolution satellite data,
have been completed in respect of 50 opencast projects having more than
5 million cum. production capacity (Coal OB) and 36 opencast projects
having less than 5 million cum. production capacity (Coal OB).
Vegetation cover mapping of seven coalfields viz. Rajmahal, Raniganj,
Ib-Valley, Mand-Raigarh, Sohagpur, Pench- Kanhan and Umrer coalfields
based on satellite data have been completed during the year 2014-15 for
assessing the regional impact of coal mining on land use / vegetation
cover in the span of 3 years for initiating required remedial measures,
16.5 Resettlement & Rehabilitation Policy of CIL
With changing aspirations of Project Affected Persons (PAPs) and for
faster acquisition of land, Resettlement & Rehabilitation Policy of CIL
was revised in 2012 making it liberal and PAP friendly with more
flexibility to the Board of Subsidiary Companies. .
The Policy provides for conducting baseline socio- economic survey to
identify PAPs enlisted to receive R&R benefits as well as to formulate
Rehabilitation Action Plan (RAP) in consultation with PAPs and State
The R&R Policy of Coal India Ltd provides for payment of land
compensation and solatium, employment or lump sum monetary compensation
and annuity, compensation for home-stead, lump sum payment in lieu of
alternate house site, subsistence allowance to each displaced family
16.6 Mine Closure Plans
In terms of the revised guidelines issued by Ministry of Coal (MoC) in
2013, CMPDI has prepared 7 mine closure plans for CIL mines during the
year. Quick comments on 31 mine closure plans for coal blocks sent by
MOC were also prepared and sent to MoC during the year.
17 COAL BED METHANE (CBM) / COAL MINE METHANE (CMM)
17.1 Collaborative development of CBM prospects in Jharia & Raniganj
coalfields by the consortium of CIL & ONGC.
Two CBM blocks, namely Raniganj North CBM block in Raniganj Coalfield
and Jharia CBM block in Jharia coalfield, were allotted in 2002 to the
consortium of ONGC & CIL for commercial development of CBM. CMPDI is
implementing the projects on behalf of CIL. ONGC is the Operator for
both the CBM blocks and carrying out the jobs as per contractual
agreement with the Govt. of India.
The FDP for both the CBM Blocks were approved by Govt. of India in
July 2013. However till date, in the absence of Petroleum Mining Lease
(PEL) and Environmental clearance, the actualization of FDPs could not
17.2 CBM and Shale gas related studies under Promotional Exploration
during XII Plan
17.2.1 CBM related studies:
CMPDI is carrying out studies related to "Assessment of Coalbed Methane
Gas-in-Place Resource of Indian Coalfields/Lignite fields" through
boreholes being drilled under promotional exploration (XII Plan period)
and Promotional Regional Exploration (PRE) funding. For the plan
period, studies have been completed for twenty four (24) boreholes.
During the year 2014-15, following three reports based on CBM related
studies have also been submitted:
a) Dipside of Garjanbahal block, IB Valley Coalfield,
b) Bhalumuda block, Mand-Raigarh Coalfield.
c) Mandwa block, Bander Coalfield.
17.2.2 Shale gas related studies:
A study related to 'Assessment of Shale Gas-in-Place Resource of
Indian Coalfields/Lignite fields' through boreholes being drilled
under promotional exploration (XII Plan period) has been taken up under
PRE funding of Ministry of Coal.
Shale gas study has been planned to be carried out in 25 boreholes
during XII plan period. Out of these, so far, the study has been
completed in respect of 15 boreholes including 5 bore holes taken up
for study during 2014-15.
17.3 Commercial development of Coal Mine Methane (CMM)
Mechanism of operationalization of commercial development of CMM within
CIL coal mining areas is under consideration at Government level. A
formal communication in this regard is awaited. Further activities will
be taken up for development and exploitation of CMM after formal
18 COMMERCIAL DEVELOPMENT OF UNDERGROUND COAL GASIFICATION (UCG) WITHIN
CIL COMMAND AREA
Mechanism on commercial development of UCG is under consideration at
Government level. Global tendering for selection of "Developer for
Commercial Development of Underground Coal Gasification (UCG)" in
Kaitha Block of Central Coalfields Limited (CCL) and Thesgora "C"
Block of Western Coalfields Limited (WCL) is under consideration.
19 R&D AND S&T PROJECTS
19.1 Projects on Coalbed Methane
19.1.1 S&T Project on "CBM Reserve Estimation for Indian
coalfields" S&T project on "CBM Reserve Estimation for Indian
coalfields" at a cost of Rs. 20.70 Crores has been approved under EoI
of Coal S&T project. IIEST/BESU, Shibpur is the principal implementing
agency and CMPDI, Ranchi; TCE, Kolkata & NGRI, Hyderabad are sub
implementing agencies in this project. The project is of 3 years
duration with effect from 24th March, 2014. Work is in progress as per
the approved project in South Karanpura Coalfield.
19.1.2 CIL R&D project titled "Studies on shrinkage swelling
characteristics of some Indian coals to ascertain recoverability of CBM
from deepseated coal resources".
CIL R&D project titled "Studies on shrinkage swelling characteristics
of some Indian coal to ascertain recoverability of CBM from deep seated
coal resources" has been completed as per schedule. The project
commenced on 1st March, 2013 and its completion report submitted on
27th Feb, 2015.
19.1.3 EU funded Research Project titled "Greenhouse Gas Recovery
from Coal Mines and unmineable Coal beds and conservation of Energy
CMPDI is one of the participating organizations from India in the
multi-national/multi-organization (12 partners from 5 countries)
collaborative project titled "Greenhouse Gas Recovery from Coal Mines
and un-mineable Coal beds and conservation of Energy" which has been
approved under the partial funding scheme of European Union Research
Commission for a period of 42 months.
Field desorption study in two horizontal in-seam boreholes at Moonidih
mine has been completed. CMPDI has completed its job and the integrated
report is under finalization at Imperial College of Mining, UK.
19.2 Projects on Shale Gas
19.2.1 CIL R&D Project titled "Assessment of prospect of shale gas in
Gondwana basin with specific reference to CIL areas"
CIL R&D project titled "Assessment of prospects of shale gas in
Gondwana basin with special reference to CIL areas" has been
completed. Total Organic Carbon Analyzer and Rock Eval Analyzer are
commissioned at CBM Lab, CMPDI, Ranchi. Sub-implementing agency ARI
(USA) has made simulation and assessment of Shale gas potentiality in
study areas of Jharia and East Bokaro Coalfields. The assessment report
was presented in CIL R&D Apex Committee Meeting held on 24th December,
19.2.2 S&T Project titled "Shale gas potentiality evaluation of
Damodar basin of India"
S&T project on "Shale gas potentiality of Damodar basin of India"
with the project cost of Rs. 16.87 crore has been approved under S&T plan
of Ministry of Coal (MoC). SSRC has approved the additional S&T Grant
of Rs. 3.51 crore. The total approved project cost is now Rs. 20.38 crore.
The project is under implementation with the objective to evaluate
Damodar basin for their shale gas potentiality through integrated
geophysical, geological, geo-chemical and petro-physical
20 GEOLOGICAL EXPLORATION & DRILLING
CMPDI has substantially improved the capacity of drilling during XI &
XII plan period. 39 new Mechanical drills & 4 Hi-Tech Hydrostatic
drills have been procured since 2008- 09, out of which 10 have been
deployed as additional drills and 33 as replacement drills In addition
to this, order for 8 Hi-Tech Hydrostatic drills have been placed in
2014-15, out of which, 3 drills have been received and deployed till
20.1 Drilling Performance in 2014-15
CMPDI deployed its departmental resources for detailed exploration of
CIL/Non-CIL blocks whereas State Govts. of MP and Odisha also carried
out exploration in CIL blocks only. Besides, eight other contractual
agencies have also been engaged for detailed drilling/exploration in
CIL/Non- CIL blocks. A total of 140 to 160 drills were deployed in
2014-15, out of which, 57 to 61 were departmental drills.
As against the achievement of 2.09 lakh metre in 2007-08, CMPDI has
achieved 6.97 lakh meter in 2013-14 and about 8.29 lakh meter in
2014-15 through departmental resources and outsourcing.
Apart from it, CMPDI continued the technical supervision of Promotional
Exploration work undertaken by MECL, and DGM (Nagaland) in Coal Sector
on behalf of MoC. A total of 1.40 lakh meter of promotional drilling
has been carried out in Coal (0.71 lakh metre) & Lignite (0.69 lakh
meter) during 2014-15.
In 2014-15, CMPDI and its contractual agencies took up exploratory
drilling in 93 blocks/mines of 22 coalfields situated in 6 States. Out
of 93 blocks/mines, 30 were Non- CIL/Captive blocks and 63 CIL
blocks/mines. Departmental drills of CMPDI took up exploratory drilling
in 57 blocks/ mines whereas contractual agencies drilled in 36 blocks/
Due to non-availability of forest clearance, work is stopped in 11
blocks. Due to lack of forest clearance and adverse law & order, about
3.67 lakh metre of drilling could not be carried out in departmental
and outsourced blocks in 2014- 15.
20.2 Geological Reports:
In 2014-15, 16 Geological Reports were prepared on the basis of
detailed exploration conducted in previous years. In addition, 8
Revised Geological Reports were also prepared. The prepared Geological
Reports have brought about 3.6 Billion Tonnes of additional coal
resources under 'Proved' category.
Under Promotional Exploration Programme, GSI and MECL have submitted 13
Geological Reports on coal blocks estimating about 4.0 Billion Tonnes
of coal resources, in 'Indicated' & Inferred categories, above the
Hydro-geological studies of a number of mining projects/ mines were
taken up for preparation of 'Groundwater Clearance Application' for
CGWA approval and EMP clearance. Hydro geological studies for 31 mining
projects/ mines/cluster of mines in ECL, BCCL, CCL, WCL, SECL NCL and
MCL were completed during 2014-15.
CMPDI is carrying out groundwater monitoring of MOEF cleared projects
viz. 65 mines of WCL area and 15 Cluster of mines in BCCL area. Water
level monitoring in other areas of ECL, CCL, SECL, NCL and MCL are also
20.4 Geophysical survey
Geophysical Logging: During the year 2014-15, a total of 2,34,614 depth
meter of geophysical logging has been carried out in CIL and Non-CIL
projects with multi parametric geophysical logging equipment.
Surface Geophysical Surveys: A total of 311 line Km of resistivity
profiling, 121 nos. of Vertical Electrical Sounding (VES) and 6509 nos.
of stations of magnetic surveys has been carried out in 2014-15.
A total of 21 geophysical reports have been submitted during the year
2014-15, including 10 reports on geophysical logging, 2 on resistivity
survey, 2 on magnetic survey, 1 on HRSS survey and 6 on ground water
21 OUTSIDE-CIL CONSULTANCY SERVICES
During the year 2014-15, 29 consultancy jobs were done by CMPDI for 22
organizations outside CIL. Some of the major clients/organisations are
Neyveli Lignite Corporation Limited, MOIL Limited, National Thermal
Power Corporation, Steel Authority of India Limited, National Aluminium
Company Limited, Damodar Valley Corporation, Chhattisgarh Mineral
Development Corporation, Mahan Coal Limited, Karnataka Power
Corporation Limited, etc.
Presently, 26 outside consultancy jobs are being executed by CMPDI for
22 RESEARCH & DEVELOPMENT PROJECTS
22.1 R&D Projects under ST Grant of Ministry of Coal
The R&D activity in Coal sector is administered through an apex body
namely, Standing Scientific Research Committee (SSRC) with Secretary
(Coal) as its Chairman. The other members of this apex body include
Chairman CIL, CMDs of CMPDI, SCCL and NLC, Directors of concerned CSIR
laboratories, representatives of Department of S&T, Planning Commission
and educational institutions, amongst others.
The SSRC is assisted by a Technical sub-committee headed by CMD, CMPDI.
The committee deals with research proposals related to coal
exploration, mining, mine safety, coal beneficiation & utilisation and
also the project proposals on mine environment and reclamation.
22.2 Physical performance
During 2014-15, 3 projects have been completed by various agencies. The
status of Coal S&T projects during 2014-15 is as under:
Following new S&T projects were approved during 2014-15:
1. Sustainable livelihood activities on reclaimed opencast coal mines:
a technology enabled integrated approach in Indian coal sector- TERI /
TERI University, New Delhi, MCL & CMPDI, Ranchi.
2. Assessment of mine water environment and development of suitable and
cost effective mine void aqua eco-system for promoting fish culture in
abandoned coal quarries of Coal India Limited- BAU, Ranchi & CMPDI,
3. Assessment of horizontal stress fields in deeper horizons and
development of roof hazards maps of coal resources in SCCL command area
- SCCL, Kothagudem and NIRM, Kolar.
Following Coal S&T projects were completed during 2014-15:
1. Development of Self Advancing (Mobile) Goaf Edge Supports (SAGES)
for depillaring operations in underground coal mines.
2. Development of software for prediction of subsidence by 3D numerical
modeling for SCCL mines.
3. Development of customized organic coatings for corrosion protection
of special mining equipment at Neyveli Lignite mines.
22.3 Financial Status
Budget provision vis-a-vis actual fund disbursements during the period
are given below:
22.4 CIL R&D Projects
For in-house R&D work of CIL, R&D Board headed by Chairman, CIL is also
So far, 73 projects have been taken up with the funds of CIL R&D Board,
out of which 54 projects have been completed till March, 2015.
2. An integrated geo-physical approach for tectonic study in Moher main
coal basin of Singrauli coalfield using 3D inverse modeling of Gravity,
Magnetic and AMT data-ISM, Dhanbad and CMPDI(Hq), Ranchi.
Following R&D projects were completed during 2014-15:
1. Assessment of prospect of shale gas in Gondwana basin with special
reference to CIL areas.
2. Studies on determination of free silica (a-Quartz) content in
respirable air borne dust in coal mines and preparation of data bank of
free silica and other minerals present in dust as well as in coal.
3. Indigenous development of Integrated Dumper Collision Avoidance
system for opencast mines.
4. Studies on shrinkage swelling characteristics of some Indian coals
to ascertain recoverability of CBM from deep seated coal and shale
5. Research and development on efficient energy management pilot study
and action plan.
23. TELECOMMUNICATION SYSTEM
CIL and its subsidiaries are making continuous efforts to up- date
communication and IT solutions. To increase transparency and optimal
utilization of resources for customer and investor satisfaction, the
following key initiatives have been undertaken:
1. GPS based Operator Independent Truck Dispatch System (OITDS) with
high speed Data and Voice communication is implemented in all eleven
Opencast projects to optimize operation of HEMM to enhance production
and productivity of the mine.
2. An ambitious plan to commission GPS/GPRS based Vehicle Tracking
System across all major mines of Coal India has been taken up and the
same is at different stages of completion at different subsidiaries.
3. E-auction of coal, e-procurement of goods and services are
operational through service provider of CIL. e-payment to employees and
vendors, e-filing of grievances is in operation to embark upon the
business process through IT initiatives.
4. In order to improve coal dispatch, actions have been taken to
connect all weighbridges with Central Server of respective
5. Corporate Mail Messaging System is in place and enhancement of Mail
Messaging System for CIL and its subsidiaries for ultimate capacity of
19400 users is under process to provide corporate mail for executives
of CIL and subsidiaries.
6. In order to meet the demanding business process, state- of the art
IP based EPABX with support of convergent technology for voice and
data, Radio communication System and UG communication system at
different locations of Coal India and its subsidiary companies are
7. For enhancing the efficiency of official works, mobile telephone
connections under CUG scheme to all executives is in place at CIL HQ
and all its subsidiaries, except at WCL, where it will be implemented
shortly. High speed Data cards and Broadband connections are provided
for internet connectivity.
8. The Web Portal of Coal India has been established in English and
Hindi with enhanced look and feel encompassing the features like
Employee Portal, Tender publication, On-line grievance management,
Investor center, Customer corner, Vigilance etc. The portal also
facilitates for receiving on-line applications for recruitment of MTs,
link to E-procurement and E-auction.
9. Multi Protocol Layered Switching (MPLS) based Video Conferencing
between CIL, Subsidiaries, CIL office, Scope Complex and MoC for
enhancement of decision making process for better production and
productivity has been successfully implemented.
10. At New building of corporate office of Coal India Limited all
modern communication facilities have been provided for smooth &
11. Performance evaluation of all executives is done through web
12. Annual Property Return of all executives is recorded through web
13. The subsidiaries have Coal Net and other Information systems in
place for accounting, finance, payroll, material management and other
14. Electronic Surveillance through CCTV at Weighbridges has been taken
up and is under the process of completion at different subsidiaries.
24. MINES SAFETY
24.1 : Safety Policy of CIL: Safety is always given a prime importance
in the operations of CIL as embodied in its mission statement. CIL has
formulated a well-defined safety policy for ensuring safety in mines,
and implementation of the same is closely monitored at several levels.
1) Operations and systems will be planned and designed to eliminate or
materially reduce mining hazards;
2) Implement Statutory Rules and Regulations and strenuous efforts made
for achieving superior standards of safety;
3) To bring about improvement in working conditions by suitable changes
4) Provide material and monetary resources needed for the smooth and
efficient execution of safety plans;
5) Deploy safety personnel for accident prevention work;
6) Organize appropriate forums with employees' representatives for
joint consultations on safety matters and secure their motivation and
commitment in safety management;
7) Prepare annual Safety Plan and long term Safety Plan at the
beginning of every calendar year, unit-wise and for the company, for
improved safety in operations as per the prevailing geo-mining
conditions to prepare the units for onset of monsoon, to fulfill
implementation of decisions taken by Committee on Safety in Mines and
Safety Conferences and to take measures for overcoming accident
proneness as may be reflected through study of accident analysis,
keeping priority in sensitive areas of roof-falls, haulage, explosives,
8) Set up a frame work for execution of Safety Policy and Plans through
General Managers of Areas, Agents, Managers and other safety personnel
of the units;
9) Multi-level monitoring of the implementation of the Safety Plans
through Internal Safety Organization at the Company Headquarters and
Area Safety Officers at area level;
10) All senior executives at all levels of management will continue to
inculcate a safety consciousness and develop involvement in practicing
safety towards accident prevention in their functioning;
11) Institute continuous education, training and retraining of all
employees with the emphasis laid on development of safety oriented
12) Continue efforts to better living conditions and help all employees
both inside and outside the mines.
To implement CIL Safety Policy, the following are provided:
1. Provision of adequate funds.
2. Deployment of adequate manpower exclusively engaged for safety jobs.
3. Support of scientific planning and R&D activities made available
through in-house expertise of CMPDIL and in collaboration with other
scientific agencies and reputed educational institutes.
4. A well-structured and multi-disciplinary Internal Safety
Organization (ISO) established in all the subsidiaries of CIL to
monitor implementation of CIL's Safety Policy.
24.2 : Accident Statistics
Accidents statistics is the indicator of safety status. Over the years,
safety performance in terms of accidents has improved significantly.
This improvement in safety is attributed to the following factors:
- Collective commitment and synergies shown by the management and
- Use of state-of-the-art technology in the field of mining methods,
machineries and safety monitoring mechanism.
- Continuous improvement in knowledge and skill of our workforce
through imparting quality training and relentless safety awareness
- Constant supervision and assistance from various quarters.
Salient features of continuous and sustained improvement in CIL's
1. The 5 yearly average fatalities since the inception of the Company
in the year 1975 have shown a consistent reducing trend over a period
of time, as is evident from the graph given below
3. The 5 yearly average serious injuries since the inception of the
Company upto 2014 has also shown a consistent reducing trend over a
period of time as is evident from the graph below:
Note: Accident Statistics are maintained calendar year wise in
conformity with DGMS and figures for 2014 are subject to reconciliation
4. The 5 yearly average serious injuries has reduced more sharply than
fatalities in the same time frame. As serious injuries are the
precursor of fatal accidents and mine disaster, it is the indicator of
improvement in safety standards in our mines as whole.
Details of Accident Statistics in 2014 vis-a-vis 2013
During 2014, there were 44 fatal accidents and 46 fatalities compared
to 55 and 59 respectively, in 2013. Thus, the numbers of fatal
accidents and fatalities in 2014, compared to 2013 have reduced by 20%
& 22% respectively, which are the lowest since the Company's
inception in 1975. The serious accidents and serious injuries in 2014
compared to 2013 have reduced to 183 & 186 from 196 & 200 respectively,
which are the lowest since the Company's inception in 1975.
24.3 : Major Activities for Safety & Rescue Division of CIL
1. Inspection of mines to review safety status & follow up action
2. Prima-facie fact finding enquiry into fatal accidents and major
incidences such as mine fire, subsidence, in-rush of water, slope
failure, explosion etc.
3. Organizing meeting of CIL Safety Board and monitoring
recommendations / suggestions made during the meeting.
4. Organizing meeting of National Dust Prevention Committee (NDPC) and
monitoring recommendations / suggestions of NDPC.
5. Framing internal technical circulars / guidelines related to safety
issues and monitoring implementation thereof.
6. Maintenance of accidents / major incidents statistics database.
7. Publication of Safety Bulletin for disseminating and sharing
knowledge in order to promote safety awareness and inculcate better
8. Framing reply to different coal mine safety related parliamentary
questions including queries raised by different standing committees
such as standing committee on steel & coal, standing committee on
labour as well as questions raised by COPU, MOC, CA&G and VIPs.
9. Monitoring safety related R&D activities in CIL.
10. Imparting specialized training by SIMTARS accredited trainers to
unit level and Area level executives who are directly engaged in
ensuring safety in mine.
24.4 Actions taken for improvement in Safety in Mines undertaken in
Safety Awareness Programme:
- Special safety drives were conducted periodically to assess the
level of compliance of safety norms in each mine.
- Annual safety fortnight / week is also conducted every year.
- Constant safety awareness programme is conducted in every mine for
increasing safety awareness amongst the grass root level workmen for
ensuring compliance of safety norms. This is done with the help of :
a) Safety talks & oaths at the beginning of the shift.
b) Safety slogans and signages at conspicuous places.
c) Circulation of safe operating procedures for every operation and
activity to all concerned.
d) Animation films on safety issues.
25. Mines Rescue Services: A well-equipped Rescue Service Organization
staffed by rescue personnel trained in modern training galleries and
equipped with modern rescue equipment is maintained by the subsidiary
companies of CIL. At present there are 6 Rescue Stations, 14 Rescue
Rooms-with-Refresher Training facilities and 17 Rescue Rooms in CIL.
26. Safety Monitoring Agencies in CIL: The implementation and
monitoring of safety norms stipulated as per statute are being done on
constant basis both by the line management as well as by ISO officials.
Apart from the above, there are several other agencies for monitoring
safety, these are as under:
At Mine Level
- Workman inspectors: as per Mines Rule-1955
- Safety Committee: constituted as per Mines Rule-1955
At Area Level
- Bipartite/Tripartite Safety Committee Meeting
- Safety Officers' Coordination Meeting
- Bipartite/Tripartite safety Committee Meeting
At Subsidiary HQ Level
- Area Safety Officers' Coordination Meeting
- Inspections by ISO Officials
- CIL Safety Board
At CIL (HQ) / Corporate Level
- CMD's meet
- Director(Tech)'s Coordination Meeting
- National Dust Prevention Committee Meeting
- Standing Committee on Safety in Coal Mines.
At Ministerial / National Level
- National Conference on Safety in mines.
- Various Parliamentary Standing committees.
27. HUMAN RESOURCE DEVELOPMENT
Coal India Ltd has made optimum utilization of resources and technology
for enhancement of efficiency and productivity in the Company. CIL has
been developing new techniques and opportunities for employee's
self-development which in turn proved to be favouring the Company as a
27.1 Overall Performance
Company has achieved MoU targets for HRD for the current year. 71256
employees were given training during 2014-15, out of which 18580 were
executives and 52676 non-executives. These trainings included in- house
training (training at subsidiary training centres and also at IICM),
training in other reputed institutes outside the Company and training
i) In-house Training
In-house trainings were organized at subsidiary HQs, 27 training
centres and also 102 VT centres across Coal India and also at IICM.
Respective HRD division of subsidiaries had organized these trainings
after assessing the training need in the respective category of
employees within the subsidiary. Special attention was given for
improving the skill of the employees keeping in mind the need of the
industry. Details of in-house trainings imparted were as under:-
ii) Training Outside Company (Within the Country)
Besides in-house training at our training institutes, VT centres and
IICM, employees were trained within the country at reputed training
institutes, in their respective field of operations and also for
supplementing in-house training efforts. Employees from eight
subsidiary companies and from CIL (HQ) have been trained in those
reputed institutes. The break-up is given below:-
- CIL has been recruiting fresh and dynamic young bloods in different
disciplines for the last few years consistently. A special attention
has been given to groom these young and energetic persons in their
respective fields throughout the year. In addition to the introductory
concept on Coal Industry, they have been trained on basic Management
Techniques (MAP) and also in their respective Technical Fields (TAP)
through regular courses organized at IICM with the reputed faculties.
Special attention has also been given in tuning them in their
respective specialized working areas by on-the-job training, throughout
- As ManagementTraineesof Excavation and E&M disciplines are posted
in coal mines, to provide them proper exposure to mining operations as
well as mining equipments (both surface and underground) and to make
them conversant with the mining activities, 5 weeks intensive training
in different batches for a total of 196 Management Trainees was
organized at Indian School of Mines, Dhanbad, the premier mining
institute of our country during the year 2014-15.
- 90 General Managers (E8) of different disciplines were given
training through IIM, Calcutta on Advance Management for three weeks
including overseas learning in Frankfurt School of Finance and
Management, Stockholm School of Economics, St. Gallen, Switzerland and
Essec Paris, France.
- 160 middle level executives (E6 & E7) were given training on
General Management for two weeks, by making a tie up with
Administrative College of India (ASCI), Hyderabad.
- 162 executives (E4 & E5) were given training on Executive
Development Programme for two weeks, by making a tie up with Indian
Institute of Management, Lucknow.
- 336 executives have been given certified training in Project
Management at IICM and other renowned institutes.
- 186 executives have been given certified training in Contract
Management at IICM and other reputed Institutes.
iv) Training Abroad
CIL has sent 118 employees (117 executives & 1 non-executive) to
different countries from all the subsidiary companies and CIL (HQ) for
training during the year 2014-15.
Coal India Limited had inducted fresh talent into the organization at
entry level as Management Trainees. 414 Management Trainees have been
recruited and inducted in various disciplines including the newly
created Community Development discipline through open advertisement.
Through campus recruitment 264 Management Trainees have been recruited
and joined the Company. CIL has also recruited of 192 Senior Medical
CIL has started the campus recruitment of Management Trainees in
technical disciplines for 485 vacancies and selected 119 candidates
till the end of March 2015; selection process is under way to fill up
all the vacancies. The candidates selected from campuses would join the
Company in July-August, 2015, on completion of their course.
CIL has also concluded selection procedure for recruitment of three
principals of nursing schools. CIL has also inducted 9 non-executives
into Executive cadre through selection/promotion. In this financial
year, 669 Management Trainees joined the Company were given induction
training program at IICM and posted in subsidiary companies.
29. INDUSTRIAL RELATIONS AND EMPLOYEES' PARTICIPATION IN MANAGEMENT
The Industrial Relations scenario in CIL & its Subsidiaries during the
financial year remained cordial. JCCs and different Bipartite
Committees at Unit/Area and Subsidiary (HQ) levels continued to
function normally. Meetings of Standardization Committee were held at
regular intervals at CIL.
To provide medical facility to a large number of ex- employees, who had
separated from service after rendering prime time of their life to the
Company, Contributory Post Retirement Medicare Scheme for
non-executives was approved by the company's board.
At the time of Nationalisation, there were only 1,18,366 houses
including sub-standard houses. The availability of these houses has
increased to 4,01,101 (up to 31.03.2015). The percentage of housing
satisfaction has now reached 100%.
3. Water Supply
As against 2.27 Lakhs population having access to potable water at the
time of Nationalisation in 1973, currently, a populace of 19.57 Lakh
(up to 31.03.2015) has been covered under water supply scheme.
4. Medical Facilities
Coal India Ltd and its subsidiaries are extending medical facilities to
its employees and their families through various medical establishments
from the dispensary level to the central and Apex Hospitals in
different parts of the coalfields.
There are 80 Hospitals with 5,749 Beds, 405 dispensaries, 592 ambulance
and 1,286 doctors including specialists in CIL and its subsidiaries to
provide medical services to its employees. Besides 08 Ayurvedic
dispensaries are also being run in the Subsidiaries of Coal India
Limited to provide indigenous system of treatment to workers.
In addition, subsidiary companies have also been organizing different
medical camps for the benefit of the villagers/community. Special
emphasis has also been given on occupational health, HIV/AIDS awareness
programme for the employees and their families.
Medical facilities are also provided to the people residing in and
around mines premises of the subsidiary companies of CIL.
5. Educational Facilities
The primary responsibility of providing educational facilities lies
with the State Governments. However, the subsidiary companies of CIL
have been providing financial assistance and infrastructure facilities
to certain renowned schools like DAV Public Schools, Kendriya Vidyalaya
and Delhi Public School etc to impart quality education.
Coal India Scholarship Scheme (Revised - 2013)
To encourage sons and daughters of employees of Coal India Limited, two
types of scholarship namely Merit and General Scholarship, are being
provided every year under prescribed terms and conditions.
The number of students, who have been getting scholarship and number of
students from IIT, NIT and Govt. Engineering & Medical Collages whose
tuition fee and hostel charges are reimbursed for 2014-15 were as
6. Statutory Welfare Measures
In accordance with the provision of the Mines Act 1952 and rules and
regulations framed there-under, subsidiaries of Coal India Limited are
maintaining various statutory welfare facilities for the coal miners
such as Canteen, Rest Shelters and Pit Head Baths etc.
7. Non-statutory Welfare Measures
Co-operative Stores and Credit Societies:-
In order to supply essential commodities and Consumer goods at a
cheaper rate in the Collieries, 22 Central co-operatives and 93 Primary
co-operative Stores are functioning in the Coalfield areas of CIL. In
addition, 158 Co- operative Credit Societies are also functioning in
the Coal Companies.
8. Banking Facilities
The Management of Coal Companies are providing infrastructure
facilities to the various Nationalised Banks for opening their Branches
and Extension Counters in the Coalfields for the benefit of their
workers. Workers are educated to draw their salaries through 481 Number
of Bank/ Extension Counters and they are also encouraged to practice
thrift for the benefit of their families.
Structured sports policy of CIL and its subsidiaries was approved by
CIL Board in its 296th meeting held on 25th March, 2013. As per sports
policy, Coal India Sports Promotion Association (CISPA) has been
registered under West Bengal Societies Registration Act, 1961 on 15th
July, 2013. CISPA has undertaken several sports activities at national
level according to the objectives of the policy.
10. Welfare, Development and Empowerment of Women
There is a Forum for Women in Public Sector (WIPS) Cell at the Company
Headquarters in Kolkata and five subsidiary companies viz. ECL, BCCL,
CCL, SECL & CMPDI. Each WIPS Cell is headed by a coordinator who plans
and executes the various activities of the forum with the help of a
duly appointed Executive Committee. The Company extends active support
to various activities of WIPS comprising of welfare activities,
training & development activities, seminars, cultural programmes,
industrial awareness visits and health awareness programme etc for the
WIPS members, women workers, their families and society at large.
Coal India Ltd and its subsidiary companies are extending full-fledged
support and patronage to National Conference Forum of WIPS held every
year in February at predetermined locations by sponsorship of the
event, nomination of maximum number of delegates and also by competing
for the BEST ENERPRISE award. In recent years, WIPS cell has done a
commendable job in reaching out to the grass-root level women
employees, empowering them by suggesting gainful redeployment, training
and uplifting their morale by recognizing outstanding achievement,
recognizing and honouring the exceptional talent.
11. Special Cash Award
During 2014-15, an amount of Rs. 91,000/- has been provided as Special
Cash Award to 15 meritorious children of employees of CIL (Hqrs.),
Kolkata Desk Offices of subsidiary companies @ Rs. 7,000/- for 8 (Eight)
students who have secured 90% or above marks in the Class-XII Board
level examination and @ Rs. 5,000/- for 7(Seven) students who have
secured 90% or above marks in the Class-X Board level examination.
12. Recreational facilities
At present there are seven holiday homes in following places.
Efforts are on to include more holiday homes in the other important
tourist spots of the country.
13. CIL Welfare Board Meeting
Coal India Welfare Board is the decision-making forum regarding welfare
policies for betterment and improvement of living conditions of
employees of the Company.
The members of CIL Welfare Board comprising of Central Trade Union
representative and representation of managements meet regularly to
discuss on the welfare measures and review the implementation of
different welfare schemes. The meeting of the Welfare Board is held
31. TREE PLANTATION / AFFORESTATION
Coal India Limited envisioned that tree plantation plays an important
role in its economic development and environmental balance.
Accordingly every year Coal India Limited and its subsidiaries are
planting saplings on the available land in its command areas. During
2014-15 Coal India Limited and its subsidiaries have planted 15.74
Lakhs tree saplings over 627.79 Ha. under the plantation /
Since inception, CIL and its subsidiaries had planted more than 82
million plant saplings over an area of 34944 Ha. upto 31st March, 2015.
32. PROGRESSIVE USE OF HINDI
Keeping with the spirit of the Constitution of India, Coal India
Limited continued its efforts to propagate and spread the progressive
use of Official Language, Hindi, during the period under review. The
management of Coal India Limited is committed to implement the
provisions of Official Languages Act, Rules and Regulations. For this
purpose periodical meetings and reviews are done regularly by the top
Hindi workshops were organized regularly with a view to create a
working atmosphere in Hindi and to remove hesitation of officers &
employees to work in Hindi. During the year, large number of employees
participated in such workshops.
With a view to create conducive atmosphere for working in Hindi and
accelerating the use of Hindi as official language among officials,
'Hindi Fortnight' was observed in all offices of Coal India Ltd.
starting from 14 September'2014. During the Hindi Fortnight, various
Hindi competitions such as Hindi noting and drafting, Hindi essay
writing, Hindi dictation, Hindi translation & Hindi typing were
organized where a large numbers of employees participated
enthusiastically. The winners were honoured with cash awards &
certificates. This creates a consciousness among employees to use
Rajbhasha in official Work. Regional Sales Offices situated at
different cities were granted sufficient fund as per their size to
celebrate Hindi Diwas & Hindi week/fortnight. In order to promote
Hindi, a Hasya Kavi Sammelan was organized on 26-12-2014 at Rohini
Housing Complex, Ultadanga, Kolkata where a large number of members
With a view to promote Hindi knowledge of employees, 10 sets of 9
selected Hindi magazines are being distributed among different
departments/ sections. It has been planned to publish a Hindi house
journal from Coal India Ltd.(HQ) during 2015. Help literature and
dictionaries were provided to the departments on demand.
Coal India always lays emphasis on imparting training of Hindi Language
and Hindi typing & stenography under Hindi teaching scheme of Govt. of
India by nominating the employees in Hindi Praveen & Pragya classes.
During the last session, CIL has nominated 2 persons in Praveen classes
and two persons in Hindi typing & stenography classes.
Various organizations of Govt. of India recognize the best performers
by awarding prizes. During the year, Coal India Ltd. received the
CIL bagged Indira Gandhi Rajbhasha shield: Under the Rajbhasha Award
Scheme of the Govt. of India, honourable President of India Shri Pranab
Mukherjee awarded Indira Gandhi Rajbhasha Shield to CIL-2nd prize for
the best implementation of Official Language Policy of the Union among
PSUs situated in region "C" at Rashtrapati Bhawan on the occasion
of Hindi Diwas.
CIL bagged 1st Prize of TOLIC(PSUs), Kolkata: Under the Rajbhasha Award
Scheme of the Govt. of India, honorable Governor of West Bengal Shri
Kesharinath Tripathi awarded TOLIC (PSUs) Kolkata shield - 1st Prize to
Coal India Ltd. in the corporate offices category for the best
implementation of Official Language Policy of the Union on 8.9.2014.
On 25th July, 2014 under the award scheme of Kendriya Sachivalya Hindi
Parishad, Coal India Ltd. was given 'Utkristh Sheild' honour in the
sammelan hall of Bhartiya Bhasha Parishad, Kolkata.
CIL was awarded with 'International Academic Rajbhasha Shield' in
All India Official Language Conference at Goa organized by Rashtriya
Hindi Academy, Rupambra on 27-10-2014.
Inspection of offices is a part of the implementation. Officials of
Rajbhasha department, CIL (HQ.) reviewed the status of implementation
of Official Language in some of its subordinate offices during the year
under review. Suggestions have been given to correct the short-comings
seen during the inspection. Some Participants were also nominated in
Hindi Workshop/Training camps organized by certain prestigious
institutions to promote Hindi.
33. VIGILANCE SET UP
The anti-corruption activities in CIL and its subsidiary companies have
been institutionalized by setting up of Vigilance Departments in CIL
and its subsidiary companies each of which is headed by a Chief
Vigilance Officer (CVO), appointed by the Govt. of India in
consultation with Central Vigilance Commission (CVC) on tenure basis,
drawn from various government services.
During the year 2014-15, 39 Intensive Examination of Works/
Contracts were undertaken by CIL (HQ) and its subsidiary companies. In
addition, 272 Surprise checks were carried out and 176 investigation
cases were completed. Besides, 59 departmental inquiries were disposed
of which resulted in punitive action against 278 officials. Such
examinations/investigations have resulted in initiation of various
system improvement measures.
As per the directives of Central Vigilance Commission, Vigilance
Awareness Week - 2014 was observed in Coal India Limited, IICM- Ranchi,
North Eastern Coalfields-Margherita & Regional Sales Offices across the
country from 27.10.2014 to 01.11.2014 emphasizing the theme of
"Combating Corruption - Technology as an enabler". As a part of the
function, following major activities were organised:
(i) The pledge was taken during the Board Meeting as well as by
(ii) Publicity was done through Banners, Posters, Vigilance Related
slogans, Message through SMS mass messaging system etc.
(iii) Speech Competition, Quiz Competition, Essay writing competition,
feedback from employees, suggestions for System improvement taken.
(iv) A one day orientation programme for Junior Level Managers was
organized in two batches.
(v) All Departments under CIL organised a Group discussion on 'IT
implementation in organizational activities for transparent and
effective corporate governance" with the officials.
(vi) Stake Holders meet was organized and their suggestion for measures
to promote good governance and enhance the level of transparency in
commercial activities of the 3 organisation were taken. Feedback
related to transparency, fairness and customer satisfaction were
(vii) Open Interactive Session with special emphasis on theme
"Combating Corruption - Technology as an enabler", was held on
(viii) Vigilance Corner page on CIL website has been introduced having
facility for online filing of Vigilance Complaints including PIDPI
complaint, online filing and viewing of Annual Property Return etc.
Preventive Vigilance/ System Improvement
1. Improvements in Online Grievance Management System: Several
improvements were made in the system creating facilities for filing of
complaints on matters relating to subsidiaries, uploading of documents
with online complaint, filing of PIDPI complaint where the identity of
the complainant is masked etc.
2. Online Bill Tracking System Implementation Action was taken to
implement bill tracking system of CMPDIL, designed with customization
on coal net, at CIL. The following additional features were suggested
for incorporation in the existing module of CMPDIL:-
a. The bill submitted by vendor with bill number to concerned bill
processing division may generate a unique code no of CIL mapped with
vendor bill no and work order /NIT no and immediately an
acknowledgement is generated as a token of receipt and for online
tracking of bill by vendor.
b. The bill may appear in the Finance section only after processing of
bill from the concerned section.
c. If the bill is rejected and returned back to vendor, the reason for
rejecting the bill may be incorporated with date of returning the bill.
The same should be mapped with the new bill when submitted afresh next
time. No new code should be assigned if the same bill was submitted
earlier with same work order no.
d. A report may be generated every week indicating the number of
pending bill with the concerned department and delivered to concerned
HOD for information through mail/sms.
e. The bill status may be informed to vendor through mail/sms.
f. Customized reports may be generated as details of pending bills with
the concerned department, details of rejection and return back
department-wise and details of payment released department-wise.
System improvement suggestions:
System improvement suggestions were made in many areas:
a. Implementation of E-procurement
b. DPC for promotion
c. Procurement of explosives
d. Manual for outsourcing of Coal and OB:
e. Purchase Manual
System Improvement Studies - Studies were taken in the following areas
Sl. Subject of Study
1 Land Acquisition and R&R issues in Rajmahal
2 Quality issue in Rajmahal mine
3 Measurement of OB and Coal in outsourced patches
4 Recording of performance of tyres through
maintenance Logbook as per international practices.
5 CSR Policy of CIL and monitoring of projects.
6 Storage, Accounting and Monitoring of Diesel Usage
7 Monitoring of coal usage by erstwhile non-core sector
8 Losses due to excessive production of coal in mines
having dispatch constraints.
9 Action on CBI Reports
10 Implementation of Bill passing system at CIL
11 Fixation of normative coal consumption for various
non-core sectors as per new coal gradation policy
based on GCV system.
12 Amendments in Manuals
13 Quality of Coal- Issues and monitoring
34. PARTICULARS OF EMPLOYEES
No employee received remuneration during 2014-15, either equal to or in
excess of the limits prescribed under Rule 5(2) of Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014.
Details of Rule 5(1) of Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014 on disclosure in the Board Report
with reference to remuneration of managerial personnel is annexed to
the Report. (Annexure XII).
35. BOARD OF DIRECTORS
Shri S. Narsing Rao continued as Chairman cum Managing Director of the
company till 25.06.2014. Dr A. K Dubey, Additional Secretary, MoC took
additional charge of CMD from 26.06.2014 and continued till 04.01.2015.
Shri S. Bhattacharya has assumed the Charge of Chairman cum Managing
Director w.e.f 05.01.2015. Shri R. Mohan Das, Director (P&IR), Shri N.
Kumar Director (Technical) and Shri B.K.Saxena, Director (Marketing)
were on the Board throughout the year. Shri C.K.Dey has assumed the
charge of Director (Finance) from 01.03.2015 on superannuation of Shri
A. Chatterjee from 28.02.2015.
Dr A K Dubey, Additional Secretary, MoC and Smt Sujata Prasad, Joint
Secretary & Financial Advisor, MoC continued as part-time official
Directors on the Board throughout the year.
Shri Sri Prakash, Shri Alok Perti and Shri C. Balakrishnan, Independent
Directors, resigned from the Board on 02.09.2014, 08.09.2014 &
09.09.2014 respectively. Appointment of Dr R. N.Trivedi, Dr Noor
Mohammad and Prof Indranil Manna, Independent Directors as directors of
the company for the balance period of their tenure was placed in the
AGM of the company. However shareholders of the company did not approve
their appointment and hence they ceased to be directors of the company
Shri A. N. Sahay, CMD, MCL and Shri A.K.Debnath, CMD, CMPDIL, permanent
invitees on CIL Board continued throughout the year. Shri A.K.Maitra
has been appointed as permanent invitee on the board with effect from
10.06.2014 and continued till 31.12.2014.
Your Directors wish to place on record their deep sense of appreciation
for the valuable guidance and services rendered by the directors during
their tenure, who ceased to be the Directors during the year.
In terms of Article 39(j) of the Articles of Association of the
Company, one third of retiring Directors are liable to retire by
rotation shall retire at the ensuing Annual General Meeting and being
eligible they offer themselves for reappointment.
The Board of Directors held 7 meetings during the year 2014-15.
36. COMPOSITION OF AUDIT COMMITTEE
Details are disclosed in the Corporate Governance Report under point
37. COMPOSITION OF CSR COMMITTEE
Details are disclosed in the Corporate Governance Report under point
38. DECLARATION GIVEN BY INDEPENDENT DIRECTORS UNDER SUB-SECTION (6) OF
The following Independent Directors have given their consent during
2014-15 that they meet the criteria of independence as provided in
sub-section (6) of Section 149 of the Companies Act 2013.
i. Dr. R.N. Trivedi.
ii. Shri Alok Perti.
iii. Shri C.Balakrishnan.
iv. Dr Noor Mohammad.
v. Prof Indranil Manna.
vi. Shri Sri Prakash.
39. REAPPOINTMENT OF INDEPENDENT DIRECTORS
No Director was reappointed in terms of section 149(10) of the
Companies Act 2013.
40. RECOMMENDATION OF AUDIT COMMITTEE AND ACCEPTANCE BY THE BOARD
All the recommendations made by Audit Committee were accepted by the
41. COMPANY'S POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION
INCLUDING CRITERIA FOR DETERMINING QUALIFICATIONS, POSITIVE ATTRIBUTES,
INDEPENDENCE OF A DIRECTOR AND OTHER MATTERS PROVIDED UNDER SUB-SECTION
(3) OF SECTION 178.
MCA vide notification no. G.S.R. 463(E) dated 5th June'2015 has
exempted the above for Government companies.
42. REMUNERATION POLICY OF DIRECTORS, KMPS AND SENIOR MANAGEMENT -
MCA vide notification no. G.S.R. 463(E) dated 5th June'2015 has
exempted the above for directors of Government companies.
43. A STATEMENT INDICATING THE MANNER IN WHICH FORMAL ANNUAL EVALUATION
HAS BEEN MADE BY THE BOARD OF ITS OWN PERFORMANCE AND THAT OF ITS
COMMITTEES AND INDIVIDUAL DIRECTORS.
MCA vide notification no. G.S.R. 463(E) dated 5th June'2015 has
exempted the above for Government companies.
44. CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
Related party transactions were made with its subsidiary companies and
that all such transactions were exempted under clause 49(VII)(D) and
(E) of Listing Agreement being transactions between two government
companies and transactions entered between a holding and its wholly
owned subsidiaries whose accounts are consolidated with holding company
and placed before the shareholders at the General meetings for
45. LOAN, GUARANTEES OR INVESTMENTS BY A COMPANY UNDER SECTION 186 OF
THE COMPANIES ACT 2013
Loan, guarantees and investments made by Coal India Limited in terms of
section 186 of Companies Act 2013 is enclosed as Annexure XIII.
46. FAMILIARIZATION PROGRAMME OF BOARD MEMBERS
Board members are fully briefed on all business related matters,
associated risks and new initiatives etc. of the Company. Company has
prepared a draft policy on familiarization programme of Directors. In
the absence of independent Directors the policy has not been placed to
47. SEXUAL HARASSMENT OF WOMEN AT THE WORKPLACE
The Company has in place an Anti-Sexual Harassment Policy in line with
the requirements of The Sexual Harassment of Women at the Workplace
(Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints
Committee (ICC) has been set up to redress complaints received
regarding sexual harassment. All employees (permanent, contractual,
temporary, trainees) are covered under this policy.
No sexual harassment complaint was received during the year under
48. DIRECTORS' RESPONSIBILITY STATEMENT
In terms of Section 134(3)(c) of the Companies Act, 2013, read with the
Significant Accounting Policies at Note 33 and Additional Notes on
Accounts at Note 34 forming part of :
1. CIL (Standalone) Accounts
2. CIL (Consolidated) Accounts,
Based on such confirmation obtained from eight Indian subsidiaries of
CIL, viz: Eastern Coalfields Limited, Bharat Coking Coal Limited,
Central Coalfields Limited, Northern Coalfields Limited, Western
Coalfields Limited, Mahanadi Coalfields Limited (Consolidated), South
Eastern Coalfields Limited (Consolidated), Central Mine Planning &
Design Institute Limited. However, for the overseas subsidiary viz:
Coal India Africana Limitada, which is incorporated under the laws of a
different sovereign i.e. Republic of Mozambique and for Joint Ventures
viz: International Coal Ventures Private Limited and NTPC Urja Private
Limited where CIL is not the majority shareholder, such confirmation
have not been obtained.
It is confirmed that:
a) In preparation of the Annual Accounts, the applicable Accounting
Standards have been followed and that no material departures have been
made from the same;
b) The Accounting policies have been selected and applied consistently
and judgments and estimates that have been made are reasonable and
prudent so as to give a true and fair view of state of affairs of the
company at the end of the financial year and profit & loss of the
company for that period;
c) Proper and sufficient care have been taken for maintenance of
adequate accounting records in accordance with the provisions of this
Act for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities;
d) The Annual Accounts have been prepared on a going concern basis;
e) Internal financial controls have been laid down and followed by the
company and that such internal financial controls are adequate and
operating effectively and;
f) Proper systems have been devised to ensure compliance with the
provisions of all applicable laws and such systems are adequate and
49. ACCOUNTS OF THE SUBSIDIARIES
The statement containing the salient features of the financial
statement of a company's subsidiaries, associate companies and joint
ventures under the first proviso to sub-section (3) of section 129 of
Companies Act 2013 is enclosed as AOC 1 in Annexure II. In terms of
General Circular No. 2/ 2011 dated 8th Feb 2011 from Ministry of
Corporate Affairs, the Annual Accounts of the subsidiary companies
shall be made available to the shareholders seeking such information.
50. COST AUDIT
The Cost Audit of your company for the year 2013-14 was conducted by
M/s Musib & Co and the Cost audit report was approved by the Board of
Directors in their 309th meeting held on 12th August'2014. The Cost
Audit Report did not contain any adverse observation/ comment or
qualification from the Cost Auditor. The above report was e-filed in
XBRL mode in MCA website vide SRN S31270903 on 19th September'2014.
M/s Musib & Co., Practising Cost Accountants was appointed as Cost
Auditor for the year 2015-16 with the recommendation of audit Committee
& approval of Board in its meeting held on 28th May'2015. E-form CRA
2 was filed on 12th June'2015.
51. SECRETARIAL AUDIT
In pursuance to Section 204 of Companies Act 2013, company had
conducted Secretarial Audit for the year 2014-15 by a practicing
Company Secretary M/s Vinod Kothari & Co, Practising Company
Secretaries. Their appointment was approved by the Board. The report of
Secretarial Auditor and the observations of Secretarial Auditor and
Management Explanation are enclosed as Annexure VI.
52. RISK MANAGEMENT POLICY
Company has appointed Ernst & Young LLP for preparation of Risk
mitigation measures. They have submitted a draft report of the same.
The following policies may be accessed on the Company's website as
1. Corporate Social Responsibility Policy:
https://www.coalindia.in/DesktopModules/DocumentList/ documents/CIL CSR
Policy New Companies Act 2013 16062014.pdf
2. Vigil Mechanism: https://www.coalindia.in/home/vigilance. aspx
3. Policy for determining Material Subsidiary:
FOR DETERMINING MATERIAL SUBSIDIARIES 21032015.pdf
4. Related Party Transaction Policy: https://www.coalindia.
in/DesktopModules/DocumentList/documents/Related Party Transaction
54. B.I.F.R AND BRPSE STATUS Eastern Coalfields Limited (ECL)
The networth of the Company became negative as on 31st March, 1999 and
the Company was referred to BIFR in November, 1999.
The Company's case was registered as case no.501/2000.
BIFR sanctioned Draft Rehabilitation Scheme in November, 2004 for
implementation. As per the scheme, the networth of the Company was
slated to become positive in 2008-09 with concessions from CIL. The
Cabinet Committee on Economic Affairs had also approved BRPSE
recommended Revival Plan of ECL on 6th October, 2006. As per this
Scheme, the networth of the Company was slated to become positive in
BIFR in its hearing held on 22.09.2014 gave the following directions:
a. Monitoring Agency (SBI) clarify to the company about the procedure
of implementation of the unimplemented part of the scheme and its
treatment in the Balance Sheet regarding waiver of unsecured loan and
conversion of current account balance into equity share capital.
b. SBI (MA) to submit a report that the implementation of the
sanctioned scheme is in consistent in the manner it was sanctioned.
c. The Company to file Auditors certificate stating status of net worth
of the company along with its current Balance Sheet immediately after
implementation of the un-implemented part of the sanctioned scheme.
d. Thereafter, SBI (MA) will examine the Auditors certificate on its
receipt from the Company and submit its recommendation on the status of
net worth of the company in order to enable the Board to decide the
issue of deregistration of the reference.
Coal India Limited (the Holding company) in its 310th Board Meeting
held on 8th November, 2014 has approved to convert unsecured loan of Rs.
519 crore and current account balance of Rs. 1532 crore as on 31st March,
2003 of ECL with CIL aggregating to Rs. 2051 crore to issue fully paid 6%
non-convertible, cumulative, redeemable Preference Shares of face value
Rs. 1000/- each to CIL. With the approval of its shareholders, ECL Board
had approved to issue 2,05,09,700 6% Non-convertible, redeemable,
cumulative Preference Shares of Rs. 1000/- each to Coal India Limited.
As per accounts of the company for the period ending 31st December,
2014, the company has reported a positive networth of Rs. 916.87 crore.
In the BIFR hearing held on 11.02.2015, the Bench issued the following
"The sick company, M/s Eastern Coalfields Ltd. (BIFR Case
No.501/2000) ceases to be a sick industrial company, within the meaning
of Section 3(1) (o) of SICA, as its networth has turned positive."
Hence, no subsidiary of CIL is a Sick Company as on 31st March'2015.
The Board of Directors of your Company wishes to record their deep
sense of appreciation for the sincere efforts put in by the employees
of the Company and Trade Unions. Your Directors also gratefully
acknowledges the co-operation, support and guidance extended to the
Company by various Ministries of the Government of India in general and
the Ministry of Coal, in particular, besides the State Governments.
Your Directors also acknowledge with thanks the assistance and guidance
rendered by the Auditors, the Comptroller and Auditor General of India
and the Registrar of Companies, West Bengal and wishes to place on
record their sincere thanks to the consumers for their continued
The following are annexed.
i) The comments and review of the Comptroller and Auditor General of
India on Standalone Accounts of Coal India Limited. (Annexure I)
ii) Auditors Report on the Standalone Financial Statements for the year
ended 31st March, 2015 and Management reply (Annexure I (A)).
iii) Statement pursuant to first proviso to sub-section (3) of section
129 read with rule 5 of Companies (Accounts) Rules, 2014) as at 31st
March, 2015. (Annexure II)
iv) Foreign Exchange Earning and Outgo under rule 8 of Companies
(Accounts) Rules 2014. (Annexure III).
v) Details about research and development of the Company, (Annexure
vi) Observations of Auditor on Standalone Financial Statements and
Management Explanation under Sec 134(3)(f)(i) of Companies Act 2013.
vii) Secretarial Audit report under section 204 of Companies Act 2013
and Observation of Secretarial Auditor & Management Explanation
viii) Performance against MoU for 2014-15 (Annexure VII).
ix) Disclosure as per Section 135 of Companies Act 2013 on Corporate
Social Responsibility (Annexure VIII).
x) The extract of the annual return as provided under sub- section (3)
of section 92 in Form No. MGT.9.(Annexure IX).
xi) Policy for determining the Material Subsidiary- Clause 49 of
Listing agreement (Annexure X).
xii) Significant and Material Orders passed by the regulators or
xiii) Disclosures under Rule 5(1) of Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 (Annexure XII).
xiv) Loan, guarantees or investments made by the company under section
186(4) of the Companies Act 2013. (Annexure XIII)
xv) Corporate Governance Report.(Annexure XIV).
xvi) The comments and review of the Comptroller and Auditor General of
India on Consolidated Accounts of Coal India Limited. (Annexure XV).
xvii) Auditors Report on the Consolidated Financial Statements for the
year ended 31st March, 2015 and Management reply. [Annexure XV(A)].
xviii) Observations of Auditors on Consolidated Financial Statements
and Management Explanation under Sec 134(3) (f)(i) of Companies Act
2013. [Annexure XV(B)].
For and on behalf of the Board of Directors
22nd July, 2015 Chairman