AnnualResults - Coal India Ltd.
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ISIN No INE522F01014 52Wk High (Rs.) 424 BV (Rs.) 67.13
Bookclosure 10/09/2014 52Wk Low (Rs.) 238 EPS (Rs.) 23.92
Mkt Cap. (Rs. Cr.) 224,925.74 P/BV (X) 5.30 Div Yield (%) 8.14
FV (Rs.) 10.00 P/E (X) 14.88 Mkt Lot 1
2013-03
To The Members of Coal India Limited.

Ladies & Gentlemen,

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

Coal India Limited (CIL) is a Maharatna company under Ministry of Coal, Government of India with headquarters at Kolkata, West Bengal. CIL is the single largest coal producing company in the world and the largest corporate employer with manpower of 357,926 (as on 1st April, 2013). CIL operates through 81 mining areas spread over 8 provincial states of India. Coal India has 462 mines of which 270 are underground, 169 opencast and 23 mixed mines. CIL further operates 17 coal washeries (12 coking coal and 5 non-coking coal) and also manages 200 other establishments like workshops, hospitals etc. CIL has 27 training Institutes. Indian Institute of Coal Management (IICM) as a Centre of Excellence operates under CIL and imparts multi disciplinary Management Development Programmes to executives. Coal Indias major consumers are Power and Steel sectors. Others include Cement, Fertilizer, Brick Kilns, and a host of other industries.

CIL has eight fully owned Indian subsidiary companies viz.:

Eastern Coalfields Limited (ECL),

Bharat Coking Coal Limited (BCCL),

Central Coalfields Limited (CCL),

Western Coalfields Limited (WCL),

South Eastern Coalfields Limited (SECL),

Northern Coalfields Limited (NCL),

Mahanadi Coalfields Limited (MCL) and

Central Mine Planning & Design Institute Limited (CMPDIL).

In addition, CIL has a foreign subsidiary in Mozambique namely Coal India Africana Limitada (CIAL).

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

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

During 2012-13, SECL has incorporated two subsidiary companies viz M/s Chhattisgarh East Railway LTD on 12th Mar13 and M/s Chhattisgarh East- West Railway Ltd on 25th Mar13 with 64% holding in each of the subsidiary,

1. NOTABLE ACHIEVEMENTS

CMPDI bags International Award

Central Mine Planning & Design Institute (CMPDI) the Ranchi based mine consultancy arm of Coal India Limited (CIL) received the reputed "Geospatial World Excellence Award 2012" on 24th April, 2012, in Amsterdam, The Netherlands. The award conferred on CMPDI, amidst stiff competition, was in recognition of excellent usage of Geospatial technology for land reclamation monitoring of coal mines on behalf of CIL. CMPDI was selected for the award out of total 149 nominations by a panel of eminent international jury.

Coal India features in Platts Global Energy Company rankings

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

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

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

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

Coal India receives Geospatial Award

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

The award received by Shri S Narsing Rao, Chairman, CIL, on behalf of the company in a formal ceremony "India Geospatial Excellence Awards" was for CILs innovative and successful implementation of geospatial technologies in exploration and mining techniques which helped in managing and streamlining the usage of natural resources.

Coal India bags CSR Award

Coal India Limited was awarded "IPE CSR Corporate Governance Award 2012" for its outstanding achievement in Corporate Social Responsibility. The award instituted by Institute of Public Enterprises and endorsed by World CSR Congress, CMO Asia and Asian Confederation of Business was presented in a formal function to CIL Officials. CIL lays special emphasis on CSR activities and is among the top PSUs of the country in terms fund allocation to CSR activities.

CIL conferred with two CSR Awards

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

2. FINANCIAL PERFORMANCE

2.1 Financial Results

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

                                                      (Rs. in crores)

Company                                    2012-13            2011-12
                                           Profit             Profit

ECL                                (+)     1897.18      (+)    962.13

BCCL                               (+)     1709.06      (+)    822.36

CCL                                (+)     2683.56      (+)   1970.24

NCL                                (+)     4420.58      (+)   4265.67

WCL                                (+)      428.87      (+)    440.50

SECL                               (+)     6290.37      (+)   6002.87

MCL                                (+)     6202.48      (+)   5463.69

CMPDIL                             (+)       29.77      (+)     30.79

CIL/NEC                            (+)    10338.03      (+)   8599.95

Sub-Total                          (+)    33999.90      (+)  28558.20
Less: Dividend from Subsidiaries (-) 9038.08 (-) 7307.20

Total                              (+)    24961.82      (+)  21251.00

Adjustment for deferred 
revenue income                     (+)       18.34      (+)     21.59
Adjustment for exchange rate variation on

Current Account overseas 
subsidiary                         (+)       (1.12)     (+)      0.07
Overall Profit as per Consolidation of Accounts (+) 24979.04 (+) 21272.66

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

Highlights of performance

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

                                                2012-13       2011-12

Production (in million tonnes)                   452.21        435.84

Off-take of Coal (in million tonnes)             465.18        433.08

Sales (Gross) (Rs./Crores)                     88281.32      78410.38

Gross Profit (Rs./Crores)                      25024.21      21326.64

Capital Employed (Rs./Crores)                  75488.14      66599.31

Net Worth (Rs./Crores)                         48471.99      40453.02

Profit before Tax (Rs./Crores)                 24979.04      21272.66

Profit after Tax (Rs./Crores)                  17356.36      14788.20

Gross Profit / Capital Employed (in %)            33.15         32.02

Profit before Tax / Net Worth (in %)              51.53         52.59

Profit after Tax / Net Worth (in %)               35.81         36.56
Earning Per Share (Rs.)

(Considering Face Value of Rs. 10 per share)      27.63         23.47 
Dividend per Share (Rs.)

(Considering Face Value of Rs. 10 per share)      14.00         10.00

Coal Stock (Net) ( in terms of No. of months 
Net Sales)                                         0.76          0.92

Sundry Debtors (Net) (in terms of No of 
Months Gross Sales)                                1.42          0.87
2.2 Dividend Income and Pay Outs

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

                                      (Rs. in crores)
Name of the Subsidiary Dividend Income of CIL

CCL                                    1486.74

                                       (748.10)

NCL                                    1662.05

                                      (2067.27)

WCL                                     184.04

                                       (323.25)

SECL                                   2984.73

                                      (1992.02)

MCL                                    2720.52

                                      (2176.56)

Total                                  9038.08 

                                      (7307.20)
 
Figures in brackets are for previous year.
Your Directors recommended dividend payment of Rs. 8842.91 crores @ Rs. 14/- per share on 6316364400 Equity Shares of Rs. 10/- each fully paid value at Rs. 6316.36 crores. Out of total dividend, Govt of India gets Rs. 7958.62 crores and other shareholders get Rs. 884.29 crores. (Earlier year - Govt of India - Rs. 5684.72 crores and other shareholders - Rs. 631.64 crores)

3. COAL MARKETING

3.1 (a) Off-take of Raw Coal

Off-take of raw coal continued to maintain its upward trend and reached 465.18 million tonnes for fiscal ended March 13, surpassing previous highest of 433.08 million tonnes achieved during the last year, i.e., an increase of 7.4 % over the last year. Off-take suffered heavily in most of the coalfields, due to excessive rainfall in August-September2012. There was gradual improvement in the second half of the year (Oct12-March13) with CIL surpassing the off-take target of second half. The overall raw coal Off-take achieved was 99 % of the Annual Action Plan Target.

Company-wise coal off-take:

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

                                                      (Figs. in Mt)

                                    2012-13 

Company           AAP Target     Achieved %     Achieved

ECL                  34.25         35.84        104.64

BCCL                 31.80         33.04        103.90

CCL                  56.60         52.89         93.45

NCL                  69.25         67.29         97.17

WCL                  45.25         41.55         91.82

SECL                118.00        121.99        103.38

MCL                 113.75        111.96         98.43

NEC                   1.10          0.62         56.36

CIL                 470.00        465.18         98.97

                        2011-12        Growth over last year 

Company                Achieved        Abs.          %

ECL                      30.83         5.01         16.25

BCCL                     30.16         2.88          9.55

CCL                      48.04         4.85         10.10

NCL                      63.61         3.68          5.79

WCL                      41.97        -0.42         -1.00

SECL                    115.15         6.84          5.94

MCL                     102.53         9.43          9.20

NEC                       0.80        -0.18        -22.50

CIL                     433.08        32.10          7.41
From the above it may be seen that ECL, BCCL & SECL had not only achieved its target but also exceeded last years level of despatch. Barring WCL and NEC all other coal companies registered a positive growth in off-take. Off-take from NCL was affected mainly due to less dispatch through MGR. Less transportation due to law & order problem and frequent break-down of surface miner affected dispatch from CCL. Off-take from WCL was affected due to less dispatch through non-rail mode and transportation constraints. Less transportation due to law & order problem coupled with problems associated with MGR movement to Talcher STPS as well as less availability of railway wagons affected the overall off-take of MCL.

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

Sector-wise break-up of dispatch of coal & coal products for 2012-13 against target and last years actual are given below:

                                                       (Figs. in Mt)

Year                           2012-13
Sector                Target     Despatch    % Satn.

Power (Util)          342.31      345.43     100.91

Steel *                 4.54        4.74     104.41

Cement **               7.70        6.47      84.03

Fertilizer              2.70        2.50      92.59

Others                109.30      107.07      97.96

Despatch              466.55      466.21      99.93

Year Sector            2011-12     Growth over last year 
                       Actual         Abs.         %

Power (Util)            312.07       33.36       10.69

Stell                     4.12        0.62       15.05

Cement                    6.69       -0.22       -3.29

Fertilizer                2.79       -0.29      -10.39

Others                  107.28       -0.21       -0.20

Despatch                432.95       33.26        7.68
* dispatch of washed coal,direct feed & blendable coal to steel plants,

** dispatch to cement plants excluding cement cpp.

3.2 Dispatches of coal and coal products by various modes:

Dispatches of coal and coal products during 2012-13 were 466.21 million tonnes against 432.95 million tonnes in 2011-12, thus registering a growth of 7.7 %. Overall dispatch by non-rail mode was 101% of the target.Growth in despatches via rail mode was 9.6 % whereas overall non-rail mode was 5.5 %. Performance could have been even better but for less movement through MGR at ECL, NCL, MCL and WCL, though road dispatch of CIL was more than the target. Rail dispatch had been almost at par with Target,

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

                                           (Figs. in million tonnes)

Year                 2012-13                   2011-12    Growth over
                                                          last year
Mode          AAP
              Target    Despatch   % Satn.    Actual     Abs.      %

Rail          253.62     251.11     99.01     229.07    22.04     9.62

Road          108.51     115.68    106.61     113.39     2.29     2.02

MGR            92.15      88.77     96.33      79.32     9.45    11.91

Other Modes    12.27      10.65     86.80      11.17    -0.52    -4.66

Overall       466.55     466.21     99.93     432.95    33.26     7.68
3.3 Wagon Loading

Sustained efforts and regular coordination with railways at different levels saw loading increase by 18.7 rakes per day over the last year. Overall materialization was 98.2 % of the target. Company wise performance shows that ECL & WCL not only exceeded last years level of loading but also surpassed its target.NCL achieved its target and also loaded more than last year. Rake loading performance was more than last year at BCCL, CCL, SECL & MCL. The loading potentials of CCL, NCL, MCL & SECL-Korba could not be fully utilized due to inadequate supply of empty wagons. In some of the coalfields viz. CCL-Karanapura and MCL-Talcher, desired level of rail despatch could not be achieved due to less transportation of coal to sidings arising out of law & order problem and obstruction/agitation by local people on various demands. Rail despatch at NCL could have been even better but for supply of N-Box and NHL-wagons for up-country movement. This apart, availability of wagons was affected in the fourth quarter of the year due to Mahakumbh.

                                                    (Figs. in Rake/day)

                         2012-13          2011-12     Growth over last 
                                                      year
Company    AAP
           Target  Achieved  % Achieved   Achieved    Abs.     %

ECL          16.1     17.8      110.56      14.8     3.00    20.27

BCCL         21.0     20.8       99.05      19.8     1.00     5.05

CCL          30.4     27.3       89.80      25.4     1.90     7.48

NCL          18.7     18.7      100.00      17.7     1.00     5.65

WCL          15.0     17.5      116.67      14.0     3.50    25.00

SECL         35.9     32.9       91.64      31.8     1.10     3.46

MCL          51.9     50.8       97.88      43.5     7.30    16.78

NEC          0.81     0.60       74.07      0.74    -0.14   -18.92

CIL*        189.8    186.4       98.20     167.7    18.66    11.13
3.4 Consumer Satisfaction:

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

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

iii) Measures like picking of shale / stone, selective mining by conventional mode as well as by surface miners, adopting proper blasting procedure / technique to reduce the possibility of admixture of coal with over- burden materials, improved fragmentation of coal etc. are being taken for improving coal quality.

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

v) Joint sampling system is in vogue for major consuming sectors e.g. power (utilities as well as captive), steel, cement, sponge iron covering more than 95% of total production of CIL. On overall, large consumers having annual quantity of 0.4 million tonne or more and having FSA have been covered for sampling. The achievement of grade conformity in respect of sampling and analysis has been to the tune of 94.4% upto Dec12 in respect of supplies to power sector during 2012-13. Consumers, covered under the agreed sampling arrangement are required to pay as per the analysed grade of coal. This system is working satisfactorily.

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

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

3.5 Marketing Of Coal :

(A) Status of implementation of different provisions under

New Coal Distribution Policy (NCDP) is as under:

(i) For power stations, commissioned on or before 31.03.2009, 306 million tonnes had been considered to be supplied through bilateral legally enforceable Fuel Supply Agreements (FSA) with a trigger level of 90%. The total quantity covered under FSA against the allocation as on March13 was 303.7 million tonnes.

Apart from the above, 176 Letter of Assurances have been issued to power plants by subsidiary companies of CIL, as per recommendations of various SLC (LT) Meetings for a quantity of about 421 Million tonne. In terms of MOC letter dated 17.02.2012, referred under Presidential Directives, out of the above power plants, plants aggregating capacity of about 60,000 MW and covering a quantity of about 250 Million tonnes commissioned/likely to be commissioned during the year 2009-10 to 2014-15, FSAs for 61 units/plants have been executed till 31st March covering a quantity of 88.8 Million tonne per annum. Out of the total 61 FSAs signed, 25 FSAs have been signed by the Government TPPs which includes UPRVUNL, APGENCO, TANGEDCO,RRVUNL,DVC, MAHAGENCO,MPPGCL and KPCL, involving 9955 MW capacity and ACQ of 42.4 MT. However signing of FSA with NTPC for their new power plants is yet to be materialised.

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

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

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

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

(vi) Under Forward E Auction scheme during the year ended Mar13, quantity allocated was 4.96 mill tonnes as against 7.55 mill tonnes allocated during the last year. During the period under review, 44.26 mill. tonnes of coal was allocated under spot e- auction to the successful bidders as against 49.72 mill. tonnes of coal allocated during the last year. The notional gain through Spot E-auction over & above the notified price was 49.9% as against 66.6% during the last year.

(B) Initiative for overcoming logistic bottleneck:

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

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

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

The Fuel Supply Agreement (FSA) for power plants commissioned/being commissioned after 31.3.2009 was revised under a Presidential Directive dated 4.4.2012 and approved in the 282nd meeting of CIL Board. The directives issued under Clause 37 of Articles of Association of the Company inter alia directed the following:

a) CIL will sign FSA with power plants that have entered into long-term PPAs with DISCOMs and have been commissioned/would get commissioned after 31.3.2009 and on or before 31.3.2015

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

c) The FSA signed with regard to power plants in (a) above shall be for full quantity of coal mentioned in Letters of Assurance (LOAs) for a period of twenty years, to be reviewed after every five year, with trigger level of 80% for levy of disincentives and 90% for levy of incentives.

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

Considering the enhanced commitment, CIL Board while approving the revised FSA model directed to keep the penalty for short supply at a token level of 0.01% of the weighted average price of the coal supplied with a moratorium of three years. Subsequently in the 289th Meeting of the Board, the penalty provisions for short supply were revised and the moratorium was withdrawn. During the process of incorporation of such revisions, CIL Board assessed the likely availability of coal and accordingly agreed for assuring 65% of the ACQ from domestic CIL sources till the end of 2014-15, which is to increase to 70% in 2015-16 and 75% from 2016-17 onwards. In order to attain the trigger level, Board directed that CIL shall supply imported coal on cost plus basis to willing power stations. In case power stations prefer to import coal themselves, the quantity shall be considered as deemed delivery.

CIL has also made provisions for supply of coal from the stock on road cum rail mode for three companies, viz. CCL, SECL and MCL, where the available rail logistics are not matching with the production programme.

This apart, considering availability of coal stock at pitheads, CIL offered coal from the stock on as is where is basis to willing power station for meeting its FSA obligations.

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

3.6 Coal Beneficiation

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

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

3.7 Stock of Coal, Coke etc.

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

              (Rs. in crores) (Rs. in crores)
               Net Value of    Net Value of   Stock in terms of no. of
                                              months of Net Sales
Company        stock as on     stock as on
               31.03.2013      31.03.2012     As on 
                                              31.03.13    As on 
                                                          31.03.12

ECL               307.98          476.65        0.40         0.69

BCCL              757.05          946.79        1.07         1.56

CCL              1103.23         1379.68        1.55         2.26

NCL               629.32          391.10        0.86         0.59

WCL               584.54          488.14        1.05         0.87

SECL              445.55          572.54        0.33         0.46

MCL               460.38          530.59        0.55         0.67

NEC/CIL            13.11           15.65        0.45         0.45

Total            4301.16         4801.14        0.76         0.92
3.8 Coal Sales Dues

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

                                                Figures in Rs. Crores

                        Coal Sales dues         Coal Sales dues
Company                 As on 31.03.2013        As on 31.03.2012
                     Gross         Net        Gross         Net

ECL                3981.52     3582.13      2665.04      2459.37

BCCL               1934.31     1372.05      1619.40       951.72

CCL                2080.45     1533.87      1471.75      1078.66

NCL                1741.28     1738.21       526.14       425.70

WCL                 551.66      471.27       133.05        60.51

SECL               1582.46     1350.29       710.09       464.28

MCL                 451.93      430.91       251.19       222.59

NEC/CIL              12.25        1.48        10.78         0.01

Total             12335.86    10480.21      7387.44      5662.84
3.9 Payment of Royalty, Cess & Others, Sales Tax/VAT/CST, Stowing Excise Duty, Central Excise Duty, Clean Energy Cess and Entry Tax

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

                                             Figures in Rs. Crores

                                           2012-13        2011-12

Royalty                                    7248.61        5315.14

Cess & Others                              2355.73        2745.85

Sales Tax / VAT                            2908.49        2537.05

Stowing Excise Duty                         457.54         421.75

Central Excise Duty                        4227.49        3040.27

Clean Energy Cess                          2319.35        2082.40

Entry Tax                                   213.90         103.15

Total                                     19731.11       16245.61
State-wise & Company-wise break-up of during 2012-13 are given below

                                                  Figures in Rs. Crores

Company   Particulars     MP    Chattis
                                garh       WB     Jharkhand    Maha
                                                               rashtra

ECL       Royalty                         11.11      229.04

          Cess & Others                             1375.07

          Sales Tax/
          VAT/CST                        321.97       54.59

          Stowing 
          Excise Duty

          Central
          Excise Duty                    376.50      168.50

          Clean 
          Energy Cess                     80.34       71.91

          Entry tax

          Total                         2164.99      524.04

BCCL      Royalty                          0.04      770.45

          Cess & Others                    3.79

          Sales Tax/
          VAT/CST                         10.75      292.70

          Stowing 
          Excise Duty

          Central
          Excise Duty                                518.10

          Clean 
          Energy Cess                                171.51

          Entry tax

          Total                           14.58     1752.76

CCL       Royalty                                    916.56

          Cess & Others

          Sales Tax/
          VAT/CST                                    273.05

          Stowing
          Excise Duty

          Central 
          Excise Duty                                547.08

          Clean 
          Energy Cess                                259.91

          Entry tax

          Total                                     1996.60

NCL       Royalty       854.99

          Cess & 
          Others        288.35

          Sales Tax/
          VAT/CST       184.38

          Stowing 
          Excise Duty

          Central
          Excise Duty   281.28

          Clean Energy 
          Cess          177.59

          Entry tax       6.40

          Total        1792.99

Company       UP         Orissa      Assam      CCO/GOI       2012-13

ECL                                                            240.15

                                                              1375.07

                                                               376.56

                                                  34.75         34.75 

                                                               545.00

                                                               152.25

                                                                 0.00

Total                                             34.75       2723.78

BCCL                                                           770.49

                                                                 3.79

                                                               303.45 

                                                  32.31         32.31

                                                               518.10 

                                                               171.51

                                                                 0.00

Total                                             32.31       1799.65

CCL                                                            916.56 

                                                                 0.00

                                                               273.05

                                                  52.13         52.13 

                                                               547.08

                                                               259.91

                                                                 0.00

Total                                             52.13       2048.73

NCL       236.98                                              1091.97

           13.24                                               301.59

          177.48                                               361.86

                                                  66.72         66.72

          222.91                                               504.19

          139.06                                               316.65

           29.54                                                35.94

Total     819.21                                  66.72       2678.92

Company   Particulars     MP    Chattis
                                garh       WB     Jharkhand    Maha
                                                               rashtra

WCL       Royalty       140.31                                  704.23

          Cess & Others

          Sales Tax/
          VAT/CST        60.73                                  268.70

          Stowing
          Excise Duty

          Central 
          Excise Duty    73.59                                  363.67

          Clean 
          Energy Cess    31.33                                  174.16

          Entry tax       9.34

          Total         315.30                                 1510.76

SECL      Royalty       492.99                                 1624.16

          Cess & 
          Others        246.05    424.25      4.98

          Sales Tax
         /VAT/CST       168.11    558.41      3.58

          Stowing
          Excise Duty

          Central 
          Excise Duty   206.14    763.52      1.39

          Clean 
          Energy Cess    75.65    532.73

          Entry tax      20.38     76.15

          Total        1209.32   3979.22      9.95

MCL       Royalty

          Cess & Others

          Sales Tax/
          VAT/CST

          Stowing 
          Excise Duty

          Central
          Excise Duty

          Clean 
          Energy Cess

          Entry tax

          Total           0.00
CIL/NEC/ Others Royalty

          Cess & Others

          Sales Tax/
          VAT/CST

          Stowing 
          Excise Duty

          Central 
          Excise Duty

          Clean 
          Energy Cess

          Entry tax

          Total

Overall   Royalty      1488.29   1624.16     11.15   1916.05    704.23

          Cess &
          Others        534.40    424.25   1383.84      0.00      0.00

          Sales Tax/
          VAT/CST       413.22    558.41    336.30    620.34    268.70

          Stowing
          Excise Duty     0.00      0.00      0.00      0.00      0.00

          Central 
          Excise Duty   561.01    763.52    377.89   1233.68    363.67

          Clean 
          Energy Cess   284.57    532.73     80.34    503.33    174.16

          Entry tax      36.12     76.15      0.00      0.00      0.00

          Total        3317.61   3979.22   2189.52   4273.40   1510.76

Company       UP         Orissa      Assam      CCO/GOI       2012-13

WCL                                                            844.54

                                                                 0.00

                                                               329.43

                                                      41.29     41.29

                                                               437.26

                                                               205.49

                                                                 9.34

Total                                                 41.29   1867.35

SECL                                                          2117.15

                                                               675.28

                                                               730.10

                                                     119.03    119.03

                                                               971.05

                                                               608.38

                                                                96.53

Total                                                119.03   5317.52

MCL                             1225.06                       1225.06

                                                                 0.00

                                 520.40                        520.40

                                                     110.63    110.63

                                 685.87                        685.87

                                 602.04                        602.04

                                  71.95                         71.95

Total                           3105.32              110.63   3215.95

CIL/NEC/
Others                                      42.69               42.69

                                                                 0.00
 
                                            13.64               13.64

                                                       0.68      0.68

                                            18.94               18.94

                                             3.12                3.12

                                             0.14                0.14

Total                                       78.53      0.68     79.21

Overall                236.98   1225.06     42.69      0.00   7248.61

                        13.24      0.00      0.00      0.00   2355.73

                       177.48    520.40     13.64      0.00   2908.49

                         0.00      0.00      0.00    457.54    457.54

                       222.91    685.87     18.94      0.00   4227.49

                       139.06    602.04      3.12      0.00   2319.35

                        29.54     71.95      0.14      0.00    213.90

                       819.21   3105.32     78.53    457.54  19731.11
4. COAL PRODUCTION

4.1 Raw coal production

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

                                         (Figures in Million Tonnes)

Company             Coking              Non-Coking           Total

               2012-13   2011-12   2012-13   2011-12   2012-13   2011-12

ECL              0.043      0.05    33.868     30.51    33.911     30.56

BCCL            26.970     27.25     4.243      2.96    31.213     30.21

CCL             16.156     15.55    31.905     32.45    48.061     48.00

NCL              0.000      0.00    70.021     66.40    70.021     66.40

WCL              0.330      0.32    41.957     42.79    42.287     43.11

SECL             0.157      0.19   118.062    113.65   118.219    113.84

MCL              0.000      0.00   107.894    103.12   107.894    103.12

NEC              0.000      0.00     0.605      0.60     0.605      0.60

CIL             43.656     43.36   408.555    392.48   452.211    435.84
4.2 Production from underground and opencast mines.

Coal production from underground mines in 2012-13 was 37.776 Million Tonnes compared to 38.39 Million Tonnes in 2011-12. Production from Open cast mines during 2012-13 was 91.6 % of total raw coal production. Company-wise production was as under: (Figures in Million Tonnes)

Company         Underground
                Production          Opencast 
                                    Production         Total Production

              2012-13   2011-12   2012-13   2011-12   2012-13   2011-12

ECL             6.849      6.83    27.062     23.73    33.911     30.56

BCCL            3.153      3.48    28.060     26.73    31.213     30.21

CCL             1.024      1.09    47.037     46.91    48.061     48.00

NCL             0.000      0.00    70.021     66.40    70.021     66.40

WCL             8.200      8.39    34.087     34.72    42.287     43.11

SECL           16.869     16.41   101.350     97.43   118.219    113.84

MCL             1.678      2.19   106.216    100.93   107.894    103.12

NEC             0.003      0.00     0.602      0.60     0.605      0.60

CIL            37.776     38.39   414.435    397.45   452.211    435.84
4.3 Hard Coke and Washed Coal (Coking) Production

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

                                    (Figures in Lakh Tonnes)

                           Hard Coke          Washed Coal
Company                                      (Coking)

                    2012-13     2011-12     2012-13      2011-12

ECL                       -           -           -            -

BCCL                   0.00        0.00       13.29        14.21

CCL                       -           -       12.39        13.34

NCL                       -           -           -            -

WCL                       -           -        1.44         1.37

SECL                      -           -           -            -

MCL                       -           -           -            -

NEC                       -           -           -            -

CIL                    0.00        0.00       27.12        28.92
4.4 Overburden Removal

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

                    (Figures in Million Cubic Metres)

Company             2012-13       2011-12

ECL                  76.448         60.31

BCCL                 84.259         81.36

CCL                  63.308         65.68

NCL                 195.706        201.66

WCL                 113.685        122.49

SECL                118.202        113.49

MCL                  90.361         85.67

NEC                   4.733          4.48

CIL                 746.702        735.14
4.5 Future Outlook

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

In the terminal year of XII Plan (2016-17), the envisaged indigenous coal production is 795.00 Mt. Out of this, CILs projection is 615 Mt (envisaged growth rate of 7.12 %), 77 % share of total production. Out of this, 30.20% is to come from existing mines, 54.2 % from projects under implementation and15. 6 % from new projects to be taken up. On date, 148 projects are under various stages of implementation. Further 126 new projects are identified to be taken up in XII Plan, of which 58 are spill-over projects of X & XI Plans. Coal production target of CIL in 2013-14 is 482 Mt (growth of 6.59 %).

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

5. POPULATION OF EQUIPMENT

The population of major Opencast Equipment (Heavy Earth Moving Machinery) as on 1.4.2013 and on 1.4.2012 alongwith its performance in terms of availability & utilisation expressed as percentage of CMPDIL norm was as under:

                 No. of Equipment     Indicated as % of CMPDIL Norm

Equipment     As on     As on        Availability      Utilisation
              1.4.2013  1.4.2012   2012-13   2011-12  2012-13   2011-12

Dragline           39        40        90         93      77        83

Shovel            715       727        88         89      77        75

Dumper           3109      3280       101        100      70        69

Dozer             972       987        91         93      58        58

Drill             707       664        99         99      65        71
6. CAPACITY UTILISATION

I. SYSTEM CAPACITY UTILIZATION

The overall system capacity utilization of CIL as a whole for the year 2012-13 was 82.99 %. against 86.12 % during 2011-12. Subsidiary- wise details in terms of percentage vis-a-vis preceding year was as under:

Company              Unit        2012-13    2011-12

ECL                               118.97     129.90

BCCL                               79.29      97.77

CCL                                84.89      93.81

NCL                                76.69      79.87

WCL                  %             93.41     102.49

SECL                               80.52      79.87

MCL                                75.61      69.90

NEC                                66.34      56.29

Total CIL                          82.99      86.12
7. PRODUCTIVITY: OUTPUT PER MANSHIFT (OMS)

Output per manshift (OMS) during 2012-13 improved to 5.32 Tonnes per manshift from 4.89 Tonnes per manshift of previous year, Company-wise position was given in the following table:

                                      (Figures in Tonnes per Manshift)

                Underground OMS    Opencast OMS          Overall OMS

Company       2012-13   2011-12   2012-13   2011-12   2012-13   2011-12

ECL              0.46      0.44     10.17      8.64      1.94      1.68

BCCL             0.35      0.36      8.31      6.57      2.50      2.20

CCL              0.33      0.32      6.09      5.79      4.42      4.19

NCL              0.00      0.00     13.65     13.55     13.65     13.55

WCL              1.10      1.08      5.03      4.22      2.97      2.70

SECL             1.37      1.30     19.26     19.32      6.72      6.44

MCL              0.97      1.24     21.34     20.38     16.07     15.36

NEC              0.01      0.01      3.77      3.79      1.30      1.23

CIL              0.77      0.75     11.48     10.40      5.32      4.89
8. PROJECT FORMULATION:

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

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

Expert Consultancy Services:

During 2012-2013, CILs subsidiary companies received expert consultancy services in the following fields:

- Environmental Management and Monitoring,

- Remote Sensing,

- Energy Audit (Diesel & Electrical),

- Diesel & Electrical Consumption Benchmarking

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

- Subsidence Studies,

- Strata Control,

- Non-Destructive Testing (NDT),

- Controlled Blasting & Vibration Studies and Explosive Utilisation - Ventilation/Gas Survey of UG mines - Mining Electronics

- Petrography and Cleat Study on coal samples

- Coal Core Processing & Analysis

- Washability tests - OBR Survey

- Man Riding System

- Soil Erosion Study

- Slope Stability Study

- Effluent/Sewerage Treatment Plants

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

8.2 Project Implementation

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

Sl 
No   Cos        Name of Projects   Type    Sanctioned
                                           Capacity     Completion 
                                                        Cost
                                          (Mty)        (Rs. Crores)

1    CCL        Amlo OC             OC        2.50        64.82

2    SECL       Nawapara            UG        0.36        46.72

                TOTAL                         2.86       111.54
b) 5 Coal projects, each costing Rs. 20 Crores & above, with an ultimate capacity of 11.00 MTY and sanctioned capital of Rs. 1456.21 Crs have started contributing production during the year 2012-13 :-

Sl 
No   Cos        Name of Projects   Type    Sanctioned
                                           Capacity     Completion 
                                                        Cost
                                          (Mty)        (Rs. Crores)

1    ECL        Sonepur Bazari
                Comb*              OC         8.00       1055.05

2    SECL       Vijay West         UG         0.50         92.60

3    SECL       Amlai OC Sec-B     OC         1.50        198.58

4    WCL        Junakunada         OC         0.60         23.76

5    WCL        Gauri Deep         OC         0.40         86.22

                TOTAL                        11.00       1456.21
*Earlier 3.5 Mty project has been dovetailed into 8 Mty,

Status of Ongoing Projects :

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

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

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

Projects           Total projects   Projects on 
                                    schedule      Projects delayed

Mining                  117              55             62

Non Mining               26              21              5

Total                   143              76             67
Reasons of delay Mining Projects :

SL   REASONS FOR DELAY                      NO OF PROJECTS

1    ADVERSE GEOMINING CONDITIONS                 1

2    DELAY IN LAND ACQUISITION + R&R             42

3    MISCELLANEOUS                               19

     TOTAL                                       62
Non - mining Projects :

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

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

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

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

Sl 
No   Cos        Name of Projects   Type    Sanctioned
                                           Capacity     Completion 
                                                        Cost
                                          (Mty)        (Rs. Crores)

1    ECL        Sonepur Bazari 
                Comb               OC        8.00        1055.05

2    WCL        Chinchala- 
                Chikalgaon
                Amalgamated        OC        3.00        1176.13
(c) CIL had approved one Non-mining project during the year 2012-13.

Approving  
Board      Subsidiary   Name                    Sanctioned
                                                Capacity    Sanctioned
                                                            Capital
                                               (Mty)       (Rs. Crores)

CIL        NCL          Incr. CHP for Jayant 
                        Expn Project               5.00        129.48
(d) The Subsidiary Company Boards had sanctioned one mining project under its delegated power during the year 2012-13 :

Sl 
No   Cos        Name of Projects   Type    Sanctioned
                                           Capacity     Completion 
                                                        Cost
                                          (Mty)        (Rs. Crores)

1.   WCL        Sch of Diversion 
                of Amb River 
                Phase-IV of
                Umrer OC           OC        2.00         64.11
(e) The subsidiary company Boards sanctioned following 8 Non-mining Projects under its delegated powers during 2012-13.

Sl   Cos    Non-Mining Projects                                Capital
                                                              (Rs. Cr)

1    MCL    Construction of diversion road from check 
            post of Lingaraj OCP to NH-200 for a length of     136.00
            2.30 Km with 01 fly over and 01 ROB.

2    MCL    Construction of ROB at the level crossing near 
            Ghantpara Village at Talcher                        37.50

3    MCL    Widening of road from 2 lane to 4 lane from 
            Bankibahal to Kanika Rly Sdg. Length-27km          162.00

4    MCL    All CT roads in B-G area inside mine premises 
            leading to siding having life more than             22.96
            5 yrs to be constructed with concrete.

5    MCL    All CT roads in Ib coalfield inside mine 
            premises leading to siding having life more         94.22
            than 5 yrs to be constructed with concrete.

6    MCL    All CT roads in Talcher CF inside mine premises 
            leading to siding having life more                 179.00
            than 5 yrs to be constructed with concrete.

7    MCL    Construction of Bye Pass Rd from Lajkura 
            Welcome Gate to Mine 3 Jn of 3.7 Km length          35.56

8    MCL    Construction of concrete CT Road connecting 
            Bundia Mine to NH 200 of 12.54 km length           135.29
8.4 Revised Project /Revised Cost Estimates

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

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

Sl 
No  Cos    Name of Projects        Type    Sanctioned 
                                           Capacity     Sanctioned 
                                                        Capital
                                          (Mty)        (Rs. Crores)

1   CCL    Kathara RCE             OC          1.9        128.94

2   WCL    Urdhan RCE              OC         0.50         70.23

3   SECL   Baroud Expn RCE         OC         3.00        258.56

4   SECL   Mahan RCE               OC         0.36        148.72
9. CONSERVATION OF ENERGY

CILs subsidiaries have undertaken the following measures, interalia to conserve energy:

- Awareness programmes are conducted at various levels for efficient use of energy,

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

- Installation of capacitor banks for improvement of power factor,

- Use of energy efficient lamps.

- Constructed strata bunker in underground mines to avoid idle running of belt conveyors, thereby saving energy.

- Installation of time switches for street lights.

- Use of higher voltage cables nearer to the coal face in mine to reduce energy losses.

- Installation of demand controller to control maximum demand.

- CIL coordinates with the subsidiaries and follow up their activities of energy conservation.

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

- Project-wise specific consumption of diesel is monitored in comparison to benchmarking by CMPDI for selected opencast projects (altogether 69 nos) of different subsidiaries of CIL.

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

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

- Another project entitled "Research and Development on efficient energy management pilot study and action plan" has recently been taken up with CIL R&D fund. Preliminary studies including field studies / visit have started.

10. CAPITAL EXPENDITURE

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

                                                 Figures in Rs. Crores

Company                        2012-13                 2011-12

                          (BE)        Actual      (BE)         Actual

ECL                     450.00        202.94      400.00       332.96

BCCL                    300.00        266.15      400.00       410.72

CCL                     425.00        397.42      350.00       320.99

NCL                     850.00        444.19      800.00       702.11

WCL                     350.00        264.05      350.00       275.72

SECL                    900.00        628.85      600.00       937.65

MCL                     500.00        531.56      700.00       497.95

CMPDIL                   30.00          6.94       30.00        16.30

NEC/CIL/Others          470.00        173.13      590.00       232.77

Total                  4275.00       2915.23     4220.00      3727.17
11. CAPITAL STRUCTURE

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

(i) 800,00,00,000 Equity Shares of Rs. 10/- each Rs. 8000.00 crores (Previous Year 800,00,00,000 Equity Shares of Rs. 10/- each)

(ii) 90,41,800 Non-cumulative 10% redeemable Rs. 904.18 crores Preference Shares of Rs. 1000/- each (Previous Year 90,41,800 Non-cumulative 10% Redeemable Preference Shares of Rs. 1000/- each)

Total                                              Rs. 8904.18 crores
The paid-up equity capital as on 31.03.2013 was Rs. 6316.36 crores, which includes Rs. 256.93 crores worth of Equity Shares issued in favour of the Government of India (GoI) towards value of land acquired.

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

                                               Figures in Rs. Crores

                                 As on 31.03.2013   As on 31.03.2012
Share Capital - Equity

Investment by GoI                      5684.72           5684.72

Other Investors                         631.64            631.64

Total                                  6316.36           6316.36
12. BORROWINGS

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

                                               Figures in Rs. Crores

                                     As on 31.03.2013  As on 31.03.2012
Share Capital - Equity

Foreign Loans including deferred credits

IBRD/JBIC                                    1136.23         1362.72

EDC Canada                                    160.35          155.63

Liebherr France SA., France                     8.72            9.03

TOTAL                                        1305.30         1527.38
The debt servicing has been duly met,

13. INTERNATIONAL CO-OPERATION

International Co-operation.

Coal India is envisaged for foreign collaboration with a view to

- Bring in proven technologies and advanced management skills for running UG and OC mines and coal preparation.

- Exploration and exploitation of Coal Bed Methane

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

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

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

Following were the details of activities that took place with various countries during 2012-13.

Indo-US Collaboration:

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

- The accomplishments in the area of cooperation for coal under India-US Coal Working group have been delineated,

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

- Inputs with regard to international trends, policies, technology and regulatory issues.

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

Ongoing Projects

A) Development of Coal Preparation Plant Simulator

B) Under Ground Coal Gasification

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

New Areas of Collaboration

i) Advanced Dry Coal Cleaning Technologies

ii) 3D seismic Surveys.

iii) Planning Large Capacity Opencast mines.

iv) Microwave Remote Sensing for Coal Mine Safety,

v) Mine Rehabilitation and Reclamation.

Indo-Russia collaboration:

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

- The Russian team confirmed their readiness to expand scientific and technological cooperation with their Indian counterparts in:

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

2. Application of energy saving processes of coal processing.

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

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

Indo-Japan Collaboration

Meeting of Working Group under Indo-Japan Energy Dialogue was held on 7th August, 2012 under the Chairmanship of Member (Energy). wherein it was decided to hold the next meeting from 9th to 10th Oct12 in Japan. Sri S.K. Singh, Joint Secretary, Ministry of Coal with Director (Technical), Coal India Limited, attended the meeting of Coal Working Group and Indo-Japan Energy Dialogue held from 9th -10th October 2012 in Japan.

Indo-Czech Co-operation

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

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

Co-operation with Ukraine

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

14. WORLD BANK FINANCED PROJECTS FOR 2012-13

The net utilization of loan distribution by IBRD and JBIC is to the tune of USD 245.73 million and JPY 28440.82 million respectively for procurement of equipment and technical assistance under Coal Sector Rehabilitation Project (CSRP). The disbursement for funding of procurement by IBRD and JBIC was completed in December 2003. As such, there is no drawals of loan since January 2004.

With the repayment of loan of USD 138.83 million to IBRD and JPY 19,026.87 million to JBIC till 2012-13, the total CSRP loan as on 31st March2013 stands at USD 106.90 million (equivalent to Rs. 585.80 Crs.) on account of IBRD and JPY 9,413.95 million (equivalent to Rs. 550.43 Crs.) on account of JBIC.

Thus a total amount of Rs. 1136.23 Crs. is lying outstanding under CSRP Loan as on 31st March2013.

COAL VIDESH DIVISION

Initiatives undertaken for acquisition and development of coal assets abroad

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

Mozambique.

Prospecting Licenses for coal having nos 3450L & 3451L, covering a total area of 224 Square kilometers were granted to CIAL, a wholly owned subsidiary of CIL in Mozambique in 2009 which is valid till August 2014.

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

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

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

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

4. Additional 30,000 mtrs of drilling in the allotted coal blocks has been awarded in June13.

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

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

Pursuant to guidelines of Govt. of India for acquiring raw material assets abroad, a notice inviting proposal offering overseas coal assets to CIL was floated on 27th February 2013. Number of proposals have been received and are being evaluated on the basis of their marketing potential.

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

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

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

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

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

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

The Master Plan for dealing with fire, subsidence and rehabilitation in the lease hold of BCCL and ECL was approved on 12th Aug2009 by Govt. of India with an estimated investment of Rs. 7112.11 Crs. for Jharia Coalfields and Rs. 2661.73 for Raniganj Coalfields. Implementation period has been delineated as 10 years.

- Implementation of Master Plan is being monitored by High Powered Central Committee at regular intervals. Advisor (Projects), Ministry of Coal took the last meeting on 23.04.2013.

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

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

The salient features of approved master Plan are as follows:

- No. of unstable sites proposed for Rehabilitation :- 139 nos+ 2(later added as per recommendation of DGMS)= 141

- No.of houses/ families assessed for Rehabilitation :- 33196 nos. (18136 nos. in Phase-I & 15060 nos. in Phase-II)

- Requirement of Land assessed for Rehabilitation :- 896.29 Ha.

- No. of Locations identified for Diversion of Infrastructure :- 7(Railway lines, Roads & IOC pipe lines.)

- Capital Requirement estimated for Rehabilitation :- Rs. 2610.10 Crores. (Rs. 1424.84 Crs & Rs. 1185.26 respectively in Phase I & II)

- Capital Requirement estimated for Diversion projects :- Rs. 11.35 Crores. (Equally divided in 5 years of Phase-I)

- Capital Requirement estimated for Fire schemes :- Rs. 40.28 Crores. (Equally divided in 5 years of Phase-I)

- Total Capital Requirement assessed :- Rs. 2661.73 Crores. (Include Phase-I & II, each of 5 years.)

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

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

- No of fire areas for which action plan has been proposed :- 67 nos.

- No. of houses to be vacated :- 98314 nos.

- No. of houses proposed to be reconstructed :- 79159 nos. ( 45795 nos. in Phase-I, 33364 nos. in Phase-II)

- Requirement of Land assessed for Rehabilitation :- 1504.99 Ha

- Capital Requirement estimated for Rehabilitation :- Rs. 4780.60 Crs.

- Capital Requirement estimated for Diversion projects :- Rs. 20 Crs.(Railway line, Road)

- Capital Requirement estimated for Fire schemes :- Rs. 2311.50 Crs.

- Total Capital Requirement assessed :- Rs. 7112.11 Crs.

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

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

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

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

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

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

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

- The Major Implementation Activities Proposed to be completed in Phase I & II are:

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

ii. Identification & Acquisition of land for proposed townships.

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

iv. Survey of land,

v. Township planning.

vi. Tendering & Award of work for townships,

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

viii. Allotment of plots/ flats for resettlement,

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

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

xi. Fire mitigation.

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

Action taken for implementation of Master Plan :

A. For Raniganj Coalfields

a) Status of Demographic Survey:

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

b) Land acquisition status:

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

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

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

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

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

B. For Jharia Coalfields :

a) Demographic (socio-economic) survey:

CIMFR and ISM started the job of demographic / socio-economic survey of fire affected / subsidence prone areas for identification of families living in the areas. Out of total 595 nos. of fire affected / subsidence prone sites / areas to be surveyed, CIMFR and ISM have completed demographic / socio-economic survey of 348 sites in which 37367 families have been identified.

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

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

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

440 acres of Raiyti and Govt. land has been surveyed for acquisition / transfer by JRDA,

Delivery of possession for mouza Lipania (120.82 acres Raiyati land) situated near Belgoria for construction of houses for non-BCCL families and Dhokra (7.99 Acres Raiyati and 1.35 acres Govt. land) for construction of Ring Road has been taken over by JRDA from DLAO, Dhanbad on 28.02.2013. Transfer of land to JRDA by BCCL-86.44 acres of vacant land in Bhuli Township and 849.68 acres of non-coal bearing land in and around Belgoria Township belonging to BCCL have been identified for developing new Townships by JRDA. NOC for transferring the land to JRDA has been given by MoC.

c) Diversion of Road from fire affected areas:

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

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

d) Diversion of Rail from fire affected areas:

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

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

e) Utility Services from fire affected areas:

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

f) Service Building & Welfare Programme:

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

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

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

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

Non-BCCL houses [54159 nos]:

2352 houses have been constructed in Belgoria rehabilitation Township "Jharia Vihar"

1162 families have shifted till 31-03-2013.

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

Status of Fire Schemes:

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

Three more fire schemes are under preparation at CMPDIL.

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

Disbursement of fund by CIL

- BCCL till March, 2013 : Rs. 218.73 Crores.

- ECL till March 2013 : Rs. 160.64 Crores.

16. ENVIRONMENTAL MANAGEMENT

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

EIA/EMPs for all the new and expansion projects as per EIA Notification SO 1533 dated 14th September, 2006 of MoEF are prepared for peak and normative capacities and environmental clearance is obtained. EIA/EMPs for mines requiring renewal of lease are also prepared for environmental clearance. EIA/EMPs on cluster basis for smaller mines of ECL and BCCL are also being prepared for environmental clearance. During the year, CMPDI has prepared 30 Form-I and formulated 29 Draft EIA/EMPs. Environmental clearances were also obtained for 30 projects from MoEF which includes 3 washeries.

16.2 Pollution Control Measures and their Efficacy

Measures are being undertaken to ensure that mining and coal beneficiation operations have minimum impact on the surrounding air quality, water quality, noise level and soil quality, hydro-geology land use pattern and socio-economic profile of the nearby population. The mitigation measures include dust suppression in mines through fixed and mobile water sprinklers. Effluent treatment facilities for mine effluent, workshop effluent and CHP effluent like oil & grease traps, sedimentation ponds and facilities for storage of treated water and its reuse have been provided for all the major projects. Domestic wastewater treatment facilities have also been provided to deal with the domestic effluent. The level of pollutants is being monitored on routine basis to ascertain the efficacy of the pollution control measures being taken in the projects. Additional remedial measures are undertaken, if required, to keep the pollutant level within the limits prescribed by regulatory bodies.

Technical and biological reclamation of mined out areas and the external overburden dumps are being undertaken by planting native species of plants for restoring the ecology.

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

16.3 ISO:14001 System

Actions like implementation, certification and re-certification of different units of CIL against ISO 14001 is continuing. During the year 2012-13, 16 units (14 Opencast projects, 1 Washery and 1 Hospital) have got re-certification for ISO 14001 after successful completion of three years validity period. 81 units of CIL got certification which includes opencast projects, underground mines, washeries, workshops and hospitals till the year 2012-13. In addition, Northern Coalfields Limited (NCL), as a company, has also got ISO 14001 certification.

16.4 Monitoring of Mines through Remote Sensing

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

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

16.5 R&R Policy of CIL,2012

The Resettlement & Rehabilitation Policy, 2012 has been finalized based on the deliberations of Inter - Ministerial Committee, deliberations of CMDs meet and approved by CIL Board in its 279th meeting held on 12th.and 13th March, 2012. The same has been released by the Honble Minister of Coal, Govt. of India on 4th. April,2012 in a Press conference at New Delhi.

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

16.6 Implementation of decision of the High Powered Committee

During this year, wages and social security of contractors workers were jointly deliberated and finalized based on the recommendations of High Powered Committee consisting of the representatives of Central Trade Unions. This committee was constituted in accordance with the decision taken in the meeting with Central Trade Unions held on 16.04.2010 in presence of then Honble Minister of State (I/C) & SPI and in pursuant of letter dated 28.03.2010 of Ministry of Coal.

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

Categories of employee                        Basic rate (Per Day)

Unskilled                                        Rs. 464.00
Semi-Skilled/Unskilled Supervisory Rs. 494.00

Skilled                                          Rs. 524.00

Highly skilled                                   Rs. 554.00
16.7 Mine Closure Plans

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

16.8 Research & Development

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

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

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

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

17.1.1 Jharia CBM Block

The Govt. of Jharkhand granted Petroleum Exploration License (PEL) to the consortium of CIL-ONGC in August 2003 for Jharia

CBM block after which the work as detailed in the Minimum Work Programme was taken up.

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

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

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

17.1.2 Raniganj CBM Block

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

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

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

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

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

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

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

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

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

17.3 Commercial development of Coal Mine Methane (CMM)

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

Under the aforesaid background, actions for commercial development were initiated and CMPDI, on behalf of CIL, had floated Global Tender for selection of suitable developer for commercial development of CMM in 5 identified blocks (3 in BCCL and 2 in CCL) in April 2011. However, the tender was cancelled in view of observations of MoP&NG on certain issues. The matter was resolved in a meeting held between Adviser, MoC and Secretary MoP&NG in August 2012 and a formal approval from the Govt. is awaited regarding operationalization of CMM development,

The matter was taken up with CCL and BCCL and consent of both the companies has been received,

17.4 Assessment of CMM potential related to large opencast mines

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

17.5 Activities taken up by CBM Lab

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

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

17.6 CMM/CBM Clearinghouse in India

A CMM/CBM clearinghouse was established at CMPDI, Ranchi under the aegis of Ministry of Coal and US EPA on 17th Nov08.

The clearinghouse is functioning as the nodal agency for collection and sharing of information on CMM/CBM related data of the country and help in the commercial development of CMM Projects in India by public/private participation, technological collaboration and bringing financial investment opportunities,

The clearinghouse has been established with financial support from Coal India Ltd. on behalf of Ministry of Coal and US EPA. The website of India Clearinghouse, http:// www.cmmclearinghouse.cmpdi.co.in, encompasses all the important information viz. EOI notifications, newsletters in addition to information regarding opportunities existing for development of CMM, VAM, etc.

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

17.6.1 Participation of CMPDI officials in GMI EXPO-13:

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

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

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

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

19. Delineation and preparation of Data-dossiers for DGH

19.1 Preparation of Data Dossiers for CBM Round V

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

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

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

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

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

20. R&D and S&T Projects

20.1 EU funded Research Project

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

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

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

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

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

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

A new S&T project regarding Shale gas potentiality of Damodar basin of India at an investment of Rs. 16.87 crore under S&T plan of Ministry of Coal (MoC) has been approved. The basic objective of the project is to evaluate Damodar basin for their shale gas potentiality through integrated geophysical, geological, geo- chemical and petro-physical investigations.

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

21. Geological Exploration & Drilling

CMPDI continued to carry out coal exploration activities in 2012-13 also, mainly in CIL and Non-CIL/Captive Mining blocks. Exploration in CIL blocks was taken up to cater to the needs of project planning/production support of subsidiaries of CIL whereas exploration in Non-CIL/Captive Mining blocks was undertaken to facilitate allotment of coal blocks to prospective entrepreneurs.

CMPDI has substantially improved the capacity of drilling during XI and XII plan periods. As against the achievement of 2.09 lakh metre in 2007-08, CMPDI has achieved 4.98 lakh metre in 2011-12 and 5.63 lakh metre in 2012-13, through departmental resources and outsourcing, registering a growth of 13% over previous year. For capacity expansion through modernization of departmental drills, 31 new Mechanical drills and 4 Hi-tech Hydrostatic drills have been procured, out of which 6 are deployed as additional drills and 29 as replacement drills. Supply order for 5 more Mechanical drills has been placed. CMPDI has also replaced 38 mud pumps and 46 trucks in the last four years. To meet the increasing work load, recruitment of Geologists/Mechanical Engineers was continued and 147 Geologist, 14 Geophysicist and 27 Mechanical Engineers were inducted through campus interview/open examination since 2008-09. Shortage of non-executive staff is being met through transfer of 246 employees from other subsidiaries of CIL.

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

21.1 Drilling Performance in 2012-13

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

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

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

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

Agency                  Target     Performance of Exploratory Drilling 
                                   in 2012-13
                        2012-13
                       (metre)     Achieved     Achieved      +/-
                                  (metre)          (%)       (m)
A.Detailed Drilling by CMPDI:

i.Departmental         2,57,000      2,76,199       107%      +19,199
ii. Outsourcing:

State Govts.              8,000         7,397        92%        - 603

MECL (MOU)               89,000      1,38,761       156%      +49,761

Tendering (CIL blocks) 1,47,000        90,779        62%      -56,221

Tendering (non-
CILblocks)               81,000        49,772        61%      -31,228

Total Outsourcing      3,25,000      2,86,709        88%      -38,291

Total A:               5,82,000      5,62,908        97%      -19,092
B. Promotional Drilling in Coal Sector:

MECL                     40,250        30,594        76%       -9,656

GSI                      13,750        14,702       107%         +952

DGM, Nagaland               500           328        66%         -172

DGM, Assam                  500             0         -          -500

CMPDI                      3000             0         -         -3000

Total B:                 58,000        45,624        79%     - 12,376

Agency                                     Achieved         Growth
                                           Prev. Year:      % 
                                           2011-12 (m)
Detailed Drilling by CMPDI:

Departmental                                 2,73,018           1%
Outsourching

State Govts.                                    6,815           9%

MECL (MOU)                                     96,207          44%

Tendering (CIL blocks)                         17,605         416%

Tendering (non-CIL blocks)                   1,04,779         -52%

Total Outsourcing                            2,25,406          27%

Total A                                      4,98,424          13%
Promotional Drilling in Coal Sector

MECL                                           25,997          18%

GSI                                            17,872         -18%

DGM, Nagaland                                     289          14%

DGM, Assam                                          0           -

CMPDI                                               -           -

Total B                                        44,158           3%
*In 2012-13, a total of 3,35,342m drilling in CIL blocks and 2,27,699m in Non-CIL blocks were done

In 2012-13, CMPDI achieved its departmental and overall drilling targets by 107% and 97% respectively. The performance of departmental drilling was better than previous year with 1% growth and recorded average operational drills productivity of 434 m/drill/month. Non-availability of permission to explore in forest areas and local problems (law & order) have affected the performance of outsourced drilling. MECL could not achieve the targets of Promotional drilling in coal sector due to forest problems.

21.2 Geological Reports:

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

22. OUTSIDE - CIL CONSULTANCY SERVICES:

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

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

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

23. RESEARCH & DEVELOPMENT PROJECTS

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

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

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

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

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

Total no. of S&T projects completed (till 31.3.2013) - 305

23.2 Physical performance

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

i) Projects on-going as on 1.4.2012 14

ii) Projects sanctioned during 2012-13 04

iii) Projects completed during 2012-13 03

iv) Projects on-going as on 1.4.2013 15

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

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

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

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

23.3 Financial status

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

                             (Rs. in crores)

         2011-12             2012-13

    RE       Actual      RE     Actual

   10.62      9.64     11.40    11.53

23.4 CIL R&D Projects

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

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

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

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

i) Projects on-going as on 1.4.2012 - 24

ii) Projects sanctioned during 2012-13 - 05

iii) Projects completed during 2012-13 - 06

iv) Projects on-going as on 1.4.2013 - 23

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

i) GPS based production reporting system in OCP

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

iii) Generation/analysis of coalfield wise database of physico-mechanical characteristics of rock/coal and representative numerical models for appropriate solution to strata control problems.

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

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

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

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

24. TELECOMMUNICATION SYSTEM

To fulfil the vision of Coal India Limited to become a Leading Global Player in energy Sector The Information & Communication Technology plays a crucial role. The Information & Telecommunication Technology has been identified as a core enabler in every aspect of Business. Aligning this function with IT strategy for overall business goal of CIL is of paramount importance. Continuous efforts are being made by CIL and its all subsidiary Companies in updating the Telecommunication & IT Solutions. In order to increase transparency, Process efficiency, optimization of operational cost along with increasing the Employee,Customer and Investor Satisfaction, the following major initiatives have been taken:-

1. CIL Board has approved implementation of Enterprise Resource Planning System along with Tele Communication Infrastructure at Coal India Limited and its Subsidiaries encompassing all areas ,Mines,Stores,Weighbridges,and Hospitals etc. to improve its operational and financial efficiencies. A committee has been constituted for implementation.

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

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

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

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

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

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

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

25. MINES SAFETY

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

Accidents statistics is the relative indicator for safety status. Over the years, the safety performance in terms of accident rate has improved significantly,

25.1 This improvement in safety is attributed to the following factors:

- Collective commitment and synergies shown by the management and workers

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

- Continuous improvement in knowledge and skill of our workforce through imparting quality training and relentless safety awareness drives.

- Strong oversight and assistances from various quarters.

Salient features of continuous and sustained improvement in CILs safety performance:

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

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

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

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

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

Sl. 
No.  Parameters                                        2011      2012

1    Numbers of fatal accidents                          51        53

2    Numbers of fatalities                               53        56

3    Numbers of serious accidents                       242       183

4    Numbers of serious injuries                        256       189
5 Fatality Rate per million ton of coal production 0.13 0.12

6    Fatality Rate per 3 lakhs manshift deployed       0.19      0.20

7    Serious injury Rate per million ton of coal
     production                                        0.60      0.42

8    Serious injury Rate per 3 lakhs man shift 
     deployed                                          0.90      0.68
Note: 1. Accident Statistics are maintained calendar year-wise in conformity with DGMS practice

2. All figures are subject to reconciliation with DGMS

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

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

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

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

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

5. Framing of internal technical circulars related to safety issues and monitoring implementation thereby,

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

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

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

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

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

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

To improve the safety standard, CIL has vigorously pursued several measures in the year 2012 along with on-going safety related activities / initiatives apart from compliance of statutory requirements for safety, which are given below.

A. Mining Operation:

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

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

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

- Higher capacity HEMMs is being used.

- Mechanisation of drilling (for bolting) planned to be adopted in all mines in a phased manner,

- Phasing out of manual loading as per recommendation of 10th National Safety Conference in a phased manner

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

- Operator Independent Truck Dispatch System (OITDS) is being provided in large OCP.

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

- Use of more number of mechanised roof drilling machines.

- Switching over to use of resin capsules from cement capsules in a phased manner,

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

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

C. Spontaneous heating, fire & explosion in mine:

- Expedite construction of sectionalisation stoppings.

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

- Initiated action to introduce more number of Gas Chromatographs in addition to conventional method of mine air sampling

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

D. Opencast Safety:

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

- Training Simulator for training of dumper operators.

- Installation of Proximity devices in dumpers

- Using rear view camera in tippers and dumpers

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

- Construction of quick setting stopping in case of fire in UG mines by using expansion foam agent.

- Development of notch cutting machine to facilitate speedy cutting of recess for construction of stopping in UG.

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

F. Occupational Health Services:

- Computerization of health records / Medical history of employees for effective medical care.

- Organizing Wellness Clinic at different subsidiary,

- Free health examination of all the contractual workers.

- Organizing Conference on Occupational Health to enhance awareness.

G. Safety Training & Others:

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

- Digitization of mine plan.

- Introduction of LED type light weight cap lamp

26 MINES RESCUE SERVICES

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

27. HUMAN RESOURCE DEVELOPMENT

27.1 Overall Performance

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

27.2

i) In-house Training

The In-house trainings were organized at subsidiary HQs., 27 Training Centers and also 102 VT Centers across Coal India and also at IICM. Respective HRD Division organized these trainings after assessing the training need of employees within the subsidiary. Special attention was given for improving skill of the employees keeping in mind the need of the Industry. Details of in-house Training are listed below:-

Category             Training    Short 
                                 Training   Workshop/    Total
                                            Seminar

Executive               6229        4654       5006     15889

Non-executive          28718        9409        660     38787

Total                  34947       14063       5666     54676
ii) Training Outside Company (Within the Country)

Besides in-house training at our Training Institutes, VT centers and IICM, employees were trained within the country at reputed training institutes, in their respective field of operations and also for supplementing our in-house training efforts. The break-up is given below:-

Category             Training   Short 
                                Training    Workshop/      Total 
                                            Seminar

Executive               1390       847        402          2639

Non-executive            800        65        329          1194

Total                   2190       912        731          3833 
iii) Training Abroad

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

27.3 Initiatives

- CIL has been recruiting fresh and dynamic young bloods in different disciplines for the last few years. This year, 1454 Management Trainees (Direct recruitment through examination 785 & through campus selection 669) have been recruited in all major disciplines. Special attention has been given in grooming these young and energetic persons in their respective fields throughout the year. In addition to the introductory concept on Coal Industry, they have been trained on basic Management Techniques (MAP) and also in their respective Technical fields (TAP) through regular courses organized at IICM with the reputed faculties. Special attention has also been given in tuning them in their respective specialized working areas by on-the-job training throughout the year. Their probation is closed after appearing for the examination at the end of first year successfully.

- As MTs of Excavation and E&M disciplines are posted in different Coal Mines, to provide them proper exposure to Mining Operations as well as Mining Equipments (both surface and underground) 5 weeks intensive training in different batches for a total of 289 MTs was organized at Indian School of Mines, Dhanbad, the premier Mining Institute of our country.

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

- 5 middle level executives were sent to China to attend 20 days training programme on "Fully Mechanized Coal Mining Technology 2012"

- 72 executives have been given certified training in Project Management at IICM and other renowned Institutes.

- 60 executives have been given certified training in Contract Management at IICM and other reputed Institutes.

- Six months Advanced Certificate Course on Business Valuation & Corporate Restructuring was organized in association with The Institute of Cost Accountants of India for 11 finance executives of CIL Hqrs.

28. MANPOWER

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

Company         As on          Total

ECL          31.03.2013        74276

             31.03.2012        78009 

BCCL         31.03.2013        61698

             31.03.2012        64884 

CCL          31.03.2013        48126

             31.03.2012        50026 

WCL          31.03.2013        54960

             31.03.2012        56989 

SECL         31.03.2013        73718

             31.03.2012        76078 

MCL          31.03.2013        22065

             31.03.2012        22023 

NCL          31.03.2013        16073

             31.03.2012        16329 

NEC          31.03.2013         2376

             31.03.2012         2538

CMPDIL       31.03.2013         3142

             31.03.2012         3129 

DCC          31.03.2013          551

             31.03.2012          562 

CIL(HQ)      31.03.2013          941

             31.03.2012          979 

CIL as a 
whole        31.03.2013       357926

             31.03.2012       371546
28.2 The presidential directives for Scheduled Caste/Scheduled Tribes/OBC have been implemented in all the subsidiaries/units of Coal India Limited.

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

As on       Total      Scheduled Caste        Scheduled Tribe
            Manpower   Nos.    Percentage  Nos.    Percentage

1.1.2012     374650    77885    20.79     45424      12.12

1.1.2013     361348    74780    20.69     43342      11.99
29 INDUSTRIAL RELATIONS AND EMPLOYEES PARTICIPATION IN MANAGEMENT

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

Strikes and Bandhs

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

STRIKES AND BANDHS

Company No. Of Strikes/Bandhs No. of other incidents

              2011-12      2012-13       2011-12      2012-13

ECL              2+0          2+1           31             6

BCCL             2+0          2+1            5             7

CCL              2+0          2+1          110            61

WCL              2+0          2+1            0             2

SECL             2+0          2+1            0             0

NCL              2+1          2+1            0            12

MCL              2+0          2+1            0             0

NEC              2+0          2+1            0             0

CMPDI            2+0          2+1            0             0

CIL              2+0          2+1            0             0

Total            2+1*         2+1          146            88

Company              Mandays lost           Production Lost

                2011-12    2012-13        2011-12      2012-13

ECL               41462      27427          71000        24100

BCCL               6935       7557           9825        19700

CCL               30801       4165         118976           00

WCL               32937      40366          90976       201800

SECL              49563      56571          93362       239000

NCL               10843       1769         116000        73500

MCL               16758       1617         309300           00

NEC                1737        198            600           00

CMPDI              1347        677            503           00

CIL                  00         60             00           00

Total            192383     140407         810542       558100
Bandh- On 31.5.2012, All Political Parties called 24 hours Bharat Bandh on political issue/price hike.

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

30. EMPLOYEES WELFARE AND SOCIAL SECURITY SCHEMES EMPLOYEES WELFARE

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

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

During 2012-13 initiative was taken for preparation of structured Sports Policy of CIL and its subsidiaries, Memorandum of Association and Regulation and Registration under West Bengal Societies Registration Act 1961 which was approved by CIL Board in its 296th meeting held on 25th March 2013.

The objective of the policy are as under:-

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

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

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

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

e) To affiliate itself to National Sports Federations/Associations and other appropriate institutions in sporting/recreational/ cultural activities & to act as a Central Body.

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

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

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

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

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

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

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

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

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

b) 1534 CPRMSE Registered Medical Card has been issued as on 31.03.2013, out of which 241 additional registered Medical Card issued to the retired executives for Outdoor/ domiciliary treatment as well as Indoor treatment.

3) HOUSING:

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

4) WATER SUPPLY:

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

5) MEDICAL FACILITIES:

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

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

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

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

6) EDUCATIONAL FACILITIES:

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

Coal India Scholarship Scheme (Revised - 2001)

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

Scholarship:

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

Company                No. of Scholarship     No. of students in IITs,
                       Awardees               NITs and others

ECL                          1165                        61

BCCL                         1502                        17

CCL                          1520                        16

WCL                          4936                        97

SECL                         3196                       198

MCL                          1508                        56

NCL                           956                       105

CMPDIL                        327                        24

Total                       15110                       574
Grant sanctioned for Schools:

Company             Amount
                (Figs. in Lakh Rs.)

ECL                    30.00

BCCL                   85.50

CCL                  1984.00

WCL                   888.00

SECL                 4238.00

MCL                  1551.17

NCL                    28.23

CMPDIL                  1.00

Total                8805.90
7) Statutory Welfare Measures:

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

8) Non-statutory Welfare Measures:

Co-operative Stores and Credit Societies:

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

9) Banking Facilities:

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

10) Welfare, Development and Empowerment of Women

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

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

11) Corporate Social Responsibility (CSR):

Coal India Limited has a well-defined CSR policy based on the guidelines issued by Department of Public Enterprise for Central PSUs on CSR, which is also applicable in respect of subsidiary companies of CIL. The CSR policy is operational within the radius of 25 KM of the project site and areas including Head Qtrs. Further CSR activities are also undertaken beyond mining areas within the respective state with the approval as per norms. CIL being a holding company, execute CSR activities which are beyond the jurisdiction of subsidiary companies

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

12) Special Cash Award:

During 2012-13, an amount of Rs. 1,64,000/- has been provided as Special Cash Award to 30 meritorious Sons and Daughters of employees of CIL(Hqrs.), Kolkata Desk Offices of subsidiary companies and Dankuni Coal Complex 7,000/- for seven(07) students who have secured 90% or above marks in Class-XII Board level examination and 5,000/- for twenty-three (23) students who have secured 90% or above marks in Class-X Board level examination.

13) Recreational facilities:

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

14) CIL Welfare Board Meeting.

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

31. TREE PLANTATION/ AFFORESTATION.

In order to improve the environment, Coal India Limited and its subsidiaries have planted 15.86 lakhs tree saplings during 2012-13 in the Coalfields under plantation/ afforestation programme. In total, subsidiaries of Coal India limited have planted around 78 million of plant over a land area of over 33700 ha upto 31st March, 2013.

32. PROGRESSIVE USE OF HINDI.

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

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

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

With a view to promote Hindi knowledge among the employees, 10 sets of 09 reputed Hindi magazines are being distributed to different departments/sections. Each & every computer has a facility to work bilingually. "Smirity Puraskar Yojna" has been introduced in CIL HQ including subsidiaries/subordinate offices to promote the Official use of Hindi.

Inspection of offices is also a part of implementation. The 3rd sub committee of Committee of Parliament on Official Language inspected CIL Delhi office on 29.06.2012 to oversee the status of use of Hindi in Official work. In addition, the officials of Rajbhasha

Vibhag, Coal India Ltd. have also inspected some subordinate offices with a view to oversee the status of the implementation of Official Language. The shortcomings seen during the inspection were corrected & concerned officials were advised to do more work in Hindi as per the instruction given in the Annual Programme.

Another feather in the cap during the period under review is that Coal India Ltd bagged second prize in the Corporate Offices Category for the best implementation of Official Language Policy of the Union by Town Official Language Implementation Committee (PSUs), Kolkata during its half yearly meeting-cum- Prize distribution ceremony held on 30.08.2012. Coal India Ltd has been awarded "Rajbhasha Shiromoni" shield Samman in the field of the best performance towards implementation of Rajbhasha in accordance with the Official Languages Act & Rules by Bhartiya Bhasha Awan Sanskriti Kendra, Delhi on 31.10.2012 at Guwahati.

33. VIGILANCE SET UP

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

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

Whistle Blower Vigilance Complaint At Coal India limited :

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

34. PARTICULARS OF EMPLOYEES.

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

35. BOARD OF DIRECTORS

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

Shri R.Mohan Das, Director (P&IR), Shri N.Kumar Director (Technical) were on the Board throughout the year. Shri A.K.Sinha, Director (Finance) continued till 31st Oct 12. Shri B.K.Saxena assumed the charge of Director (Marketing) with effect from 19th June 2012. Shri A.Chatterjee assumed the charge of Director (Finance) with effect from 1st November 2012.

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

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

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

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

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

36. DIRECTORS RESPONSIBILITY STATEMENT

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

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

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

iii) That proper and sufficient care have been taken for maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and

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

37. ACCOUNTS OF THE SUBSIDIARIES.

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

38. COST AUDIT

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

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

39.1 Eastern Coalfields Limited (ECL)

As on 31st March, 1997 accumulated losses of the company exceeded its networth by Rs. 251.20 crores. Hence company was referred to BIFR in October, 1997 in terms of Section 15(1) of SICA. Due to financial restructuring done by CIL on 31st May 1998 by converting unsecured loan of Rs. 1179.45 crore into equity, the net worth of the company became positive as on that date and company came out of BIFR. Since the company continued to incur losses year after year, the networth of the company again became negative as on 31st March, 1999 and the company was again referred to BIFR in November, 1999. Companys case was registered as case no. 501/2000.

In the 237th ECL board meeting held on 5th August, 2010 ECL board approved a Draft Modified/Revised Proposal (DMRP) - June, 2010 for revival of ECL. BRPSE reviewed the ECLs case on 27th August, 2010. Company presented the DMRP (June, 2010). BRPSE advised the company to revise the physical and financial projections by exploring the possibility of advancing the project completion to enable the company to come out of BIFR earlier. Hence the revised DMRP (November, 2010) was prepared with a cut-off date of 31st March, 2010. As per DMRP (November, 2010) the company was expected to come out of BIFR in 2014-15. The revised DMRP (November, 2010) was submitted to BIFR in its meeting held on 22nd November, 2010. As advised by BIFR, the Monitoring Agency got the TEV study conducted by a consultant.

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

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

39.2 Bharat Coking Coal Limited (BCCL)

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

As directed, BCCL submitted its Revival Plan to BIFR on 12.04.2004 for its consideration. Subsequently, after formation of BRPSE, BCCL submitted its Revival Plan to BRPSE in April05 suitably modifying the Rehabilitation Plan submitted earlier to BIFR on 12.04.2004. BRPSE recommended the Rehabilitation Plan of BCCL to BIFR for concurrence.

In its hearing held on 18.05.2009, BIFR directed BCCL to submit updated Revival Scheme/ Proposal for revival of BCCL. Accordingly an updated Draft Rehabilitation Scheme (DRS) was submitted to BIFR on 11.08.2009. The said Draft Rehabilitation Scheme was approved by BIFR on 28.10.2009 and the same has also been vetted by MOC. A review hearing was held on 28.09.2010 on the progress of implementation of the Revival Plan. In the said hearing, the BIFR directs the company to submit the compliance report(s) from time to time on quarterly basis.

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

In its hearing held on 3rd Jan13 BIFR issued the following directives:

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

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

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

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

(e) The Company would complete necessary formalities with the concerned Register of Companies (ROC) as may be required.

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

CIL Board in its 296th meeting held on 25th Mar13 approved issuance of 5% non-convertible, cumulative, redeemable Preference shares of the face value of Rs. 1000/- each with following conditions:

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

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

(c) Annual cumulative dividend is 5%.

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

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

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

BCCL Board at its meeting held on 26.03.2013 approved issue and allotment of 5% non convertible Cumulative Redeemable Preference Shares to CIL. Taking into effect allotment of issue of Preference Share, the net worth of the Company turns positive and the directive of Honble Bench of BIFR is complied and an intimation in this regard was also sent to BIFR on 02.04.2013.

40. ACKNOWLEDGEMENT:

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

41. ADDENDA

The following are annexed.

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

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

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

iv) Foreign Exchange Earning and Outgo (Annexure I)

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

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

vii) Performance against MoU for the year 2012-13 (Annexure IV).

                           For and on behalf of the Board of Directors
 
                                       S.  Narsing Rao

                                         Chairman
Kolkata, 1st July, 2013