The Members Coal India Limited
Ladies and Gentlemen
On behalf of the Board of Directors I have great pleasure in presenting to you the 44thAnnual Report of Coal India Limited (CIL) and Audited Accounts for the year ended 31stMarch 2018 together with the reports of Statutory Auditors and Comptroller and AuditorGeneral of India thereon.
Coal India Limited (CIL) is a 'Maharatna' company under the Ministry of CoalGovernment of India with headquarters at Kolkata West Bengal. CIL is the single largestcoal producing company in the world and one of the largest corporate employers withmanpower of 298757 (as on 1st April 2018). CIL operates through 82 miningareas spread over nine provincial states of India. Coal India Limited has 369 mines (as on1st April 2018) of which 174 are underground 177 opencast and 18 mixed mines.CIL further operates 15 coal washeries (11 coking coal and 4 non-coking coal) and alsomanages other establishments like workshops hospitals and so on. CIL has 27 trainingInstitutes. Indian Institute of Coal Management (IICM) is an excellent training centreoperates under CIL and imparts multidisciplinary management development programmes to theexecutives. Coal India's major consumers are Power and Steel sectors. Others includecement fertilizer brick kilns and a host of other industries.
CIL has eight fully owned Indian subsidiary companies:
Eastern Coalfields Limited (ECL)
Bharat Coking Coal Limited (BCCL)
Central Coalfields Limited(CCL)
Western Coalfields Limited (WCL)
South Eastern Coalfields Limited (SECL)
Northern Coalfields Limited (NCL)
Mahanadi Coalfields Limited (MCL) and
Central Mine Planning & Design Institute Limited (CMPDIL).
In addition CIL has a foreign subsidiary in Mozambique namely Coal India AfricanaLimitada (CIAL).
The mines in Assam i.e. North Eastern Coalfields is managed directly by CIL.
Mahanadi Coalfields Limited a subsidiary of Coal India Ltd is having four (4)Subsidiaries and one(1) Joint Venture SECL has two(2) Subsidiaries and CCL has one (1)Subsidiary.
A) Subsidiaries of MCL
1. MJSJ Coal Ltd.
MJSJ Coal Ltd was incorporated on 13th August 2008 as a Joint Venture Company of MCL.MJSJ Coal Ltd was incorporated for Gopalprasad OCP where MCL is having 60% shares JSWSteel Limited and JSW Energy Limited having 11% shares each Shyam Metalics and Energy Ltd(formerly known as Shyam DRI Power Limited) and Jindal Stainless Limited having 9% shareseach. The paid up Share Capital of MJSJ Coal Ltd. as on 31-03-2018 was Rs. 95.10 Crore.The Hon'ble Supreme Court of India in its judgement dated 25.08.2014 and order 24.09.2014declared allocation of Utkal-A coal block allocated to MJSJ Coal Ltd. as illegal and hasquashed the allocation.
2. MNH Shakti Ltd.
MNH Shakti Ltd was incorporated on 16th July 2008 as a Joint Venture Company of MCL.MNH Shakti Ltd was incorporated for Talabira-II & III OCP where MCL is having 70%shares Neyveli Lignite Corporation Ltd having 15% shares and Hindalco Industries Ltd.having 15% shares. The Share Capital of MNH Shakti Ltd. as on 31-03-2018 was Rs. 85.10Crore. The Hon'ble Supreme Court of India in its judgement dated 25.08.2014 and order24.09.2014 declared allocation of Talabira- II and Talabira- III coal blocks allocated toMNH Shakti Ltd. as illegal and has quashed the allocation.
3. Mahanadi Basin Power Limited.
Mahanadi Basin Power Limited was incorporated on 2nd December 2011 andcertificate for commencement of business issued by ROC on 06-02-2012. MBPL wasincorporated as an SPV with 100% shares held by Mahanadi Coalfields Ltd and it's nomineeswith power generation capacity of 2x800 MW through Pit Head Power plant at BasundharaCoalfields. It is a wholly owned subsidiary of Mahanadi Coalfields Ltd (MCL) having itsRegistered Office at Plot No. G-3 Gadakana Chandrasekharpur Bhubaneswar-751017 Odisha.The share capital as on 31.03.2018 was Rs. 5 Lakh.
4. Neelanchal Power Transmission Company Private Limited
MCL ventured into Power Transmission Business in the State of Odisha for betterutilization of surplus funds along with development of infrastructure in the State ofOdisha. Accordingly on 8th January 2013 another joint Venture Company namelyNeelanchal Power Transmission Company Private Limited (NPTCPL) was incorporated inpartnership with Odisha Power Transmission Company Ltd (OPTCL) having 50:50 equityparticipation by virtue of a Joint Venture Agreement between the MCL and OPTCL with anobjective of carrying out power transmission business in Odisha.
5. Mahanadi Coal Railway Limited
Pursuant to MoU signed between IDCO MCL and IRCON on 20th May 2015 aJoint venture Company viz. Mahanadi Coal Railway Limited was incorporated on 31stAugust 2015 with a equity participation in the ratio of 64:26:10 among MCL IRCON andIDCO to build construct operate and maintain identified rail corridor projects includingdoubling third line traffic facility projects important for coal connectivity that arecritical for evacuation of coal from mines in the state of Odisha. The share capital ason 31.03.2018 was Rs. 5 Lakh.
(B) Subsidiaries of SECL
1. M/s Chhattisgarh East Railway Ltd(CERL)
1. CERL is a joint venture Company among South Eastern Coalfields Limited M/s IRCONInternational Limited and Chhattisgarh State Industrial Development Corporationincorporated on 12th Mar'13 for construction of railway lines for evacuation ofcoal. The Company has achieved financial closure for East Rail Corridor Phase I Project on24.11.2017.
2. The total land required for the construction of Main Line from Kharsia toDharamjaigarh had been acquired.
3. The proposal for diversion of 26.52 Ha of forest land for 12 Villages in 0-10 KM andSpur 0-28 KM had been approved.
4. Tenders amounting to Rs. 655 Crores had already been issued for construction ofMajor Bridges Minor Bridges Road Bed and supply fabrication erection Launching ofSteel Girders and Design Supply Erection Testing & Commissioning of Tractionsubstation for various segments in 0-10 KM 10-74 KM and 0-28 KM spur supply of Signaling& Telecommunication Cable and Supply & Stacking of Ballast.
5. Detailed survey and requirement of land for Chhal had been completed andnotification for acquisition of private land issued. The survey of other two feeder linesoriginating from Korichhapar and Dharamjaygarh is under finalization in consultation withSECL.
During the year 2017-18 the paid up and subscribed capital of the Company remained atRs. 306 Crore. SECL holds 67.23% equity Share during 2017-18.
2. M/s Chhattisgarh East- West Railway Ltd (CEWRL)
CEWRL is a joint venture Company among South Eastern Coalfields Limited M/s IRCONInternational Limited and Chhattisgarh State Industrial Development Corporationincorporated on 25th Mar'13 for construction of railway lines for evacuation ofcoal. Achievement during 2017-18 are
1) The revision of Detailed Project Report (DPR) was necessitated due to approval ofinflated mileage of 40% from Railway Board as against our request of 50% and introductionof GST Act w.e.f 01st July 2017 and incorporating suggestions received fromCoal India Limited.Accordingly the Revised Detailed Project Report (DPR) of East-WestRail Corridor Project from Gevra Road to Pendra Road via Dipka Katghora SindurgarhPasan approximately 135.30 km in length with connectivity to Kusmunda Junadih and DipkaSidings along with a provision to construct and integrate with the East West Rail Corridorfor about 35 Kms of Feeder lines to connect Kartali Ambica Saraipali and Vijay WestMines of SECL prepared and submitted by IRCON and duly independently financially appraisedby M/s CARE Risk Solutions Pvt. Ltd (formerly M/s CARE Kalypto Risk Technologies &Advisory Services Pvt. Ltd.) Mumbai had been approved at a total Project Cost of Rs.4970.11 Crores.
2) The approval of inflated mileage of 40% for the first five years of operation for achargeable distance of 135 Km from the Railway Board had been communicated on 15thJune 2017.
3) The Company has initiated the process of financial closure through rupee term loanof Rs. 3976.00 Crore being 80% of the total project to finance the project in the Debt toEquity Ratio of 80:20. The balance amount is proposed to be the promoter's contribution.
4) The Stage I approval for diversion of 459.522 Ha of forest land for the project hasbeen approved on 26.02.2017 and upon compliances the working permission has been grantedon 31st March 2018. Final Stage II clearance for the same is under process.
5) Land acquisition for main line and Urga -Kusmunda has been largely completed.
6) Detailed survey and requirement of land to initiate land acquisition for variousconnectivity and feeder lines is being worked out.
During the year 2017-18 the paid up and subscribed capital of the Company has remainedthe same at Rs. 504.05 Crore with SECL holds 64.06% Share.
(C) Subsidiary of CCL
Jharkhand Central Railway Limited is a Joint Venture Company among Central CoalfieldsLimited M/s IRCON International Limited and Govt. of Jharkhand incorporated on 31stAugust 2015 for evacuation of Coal in which CCL holds 64% shares. During the year2017-18 the Authorised Capital of the company increased from Rs. 100 Crores to Rs. 500Crores.
The work of Shivpur - Kathotia new BG Rail Line has been identified to be taken up byM/s Ircon International Limited implementing agency of JCRL. M/s IRCON prepared DetailedProject Report which was approved by JCRL Board. Further EC Railway has accorded itsapproval on the DPR (Revised Project Cost - Rs. 1799.64 Crs) submitted by M/s IRCON on 27thFeb. 2018. M/s IRCON has taken up the matter for finalization of inflated mileage andconcession agreement with Railways.
1. STATE OF COMPANY AFFAIRS
1) Offtake during 2017-18 was 580.284 Mt highest ever with an increase of 6.8% comparedto 543.32 Mt in 2016-17.
2) Coal supply to the Power sector was 454.224 Mt in 2017-18 representing a growth ofabout 6.8%. CIL had supplied 425.40 Mt in 2016-17.
3) Supply of coal to Non-power sector in 2017-18 was 127.25 Mt representing a growth ofabout 8.67% compared to 117.09 Mt in 2016-17.
4) Coal Inventory as on 31.03.18 was 55.49 Mt. against 68.42 Mt. in 31.03.17 resultingin liquidation of about 13 Mt.
5) 11 coal blocks have been allotted to Coal lndia Ltd subsidiaries i.e. ECL BCCL andWCL. These new blocks will help them to produce more than 100 MTA each.
6) Company has commissioned two major rail infrastructure projects Tori-Balumathsection in Tori - Shivpur division under jurisdiction of CCL and Jharsuguda- Barpali-Sardega section under jurisdiction of MCL which were built on deposit basis and are nowoperational.
2. FINANCIAL PERFORMANCE
2.1 Financial Results (CIL Consolidated)
CIL is one of the largest profit making and tax & dividend paying enterprises inIndia. CIL and its subsidiaries have achieved an aggregate Pre-Tax Profit of Rs. 10726.44crores for the year 2017-18 against a reinstated pre-tax profit of Rs.14446.33 crores inthe year 2016-17 after taking into account the impact of pay revision for non-executiveemployees w.e.f. 01.07.2016 and taking provisions for executives pay revision which is tobe implemented retrospectively from 01.01.2017.The above mentioned figure also includesthe actuarial impact of Rs. 7384.37 cr. due to increase in ceiling of gratuity from Rs.10Lakhs to Rs. 20 Lakhs w.e.f. 29.03.2018. The subsidiary wise details of Pre-tax Profitafter considering the impact of pay revisions and increase in gratuity ceiling limit ofCIL are given in Annexure 1.
There is growth in Profit Before Tax of 31.35% on comparison the Profit Before Tax of2016-17 (without considering the provision of pay revision of executive and non-executive)with the Profit Before Tax of 2017-18 (without considering the provision of pay revisionof executives and non-executives impact of increase in ceiling of gratuity limit fromRs.10 Lakh to Rs.20 Lakh but including the payment of revised wages of non-executives from01.10.2017 to 31.03.2018). The subsidiary wise details of Pre-tax Profit after withoutconsidering the impact of pay revision and increase in gratuity ceiling limit of CIL aregiven in Annexure 1A.
CIL as a group had achieved profit for the year of Rs. 7020.22 crores in 2017-18compared to Rs. 9279.77 crores in 2016-17. Total Comprehensive Income of the company isRs. 7652.73 crores compared to Rs. 9361.77 crores in 2016-17 (share of non-controllinginterest of Rs. 0.12 crore; previous year: Rs. 0.25 crore).
Highlights of performance
The highlights of performance of Coal India Limited Consolidated for the year 2017-18compared to previous year are shown in the table below:
|PARTICULARS ||2017-18 ||2016-17 |
|Production of Coal (in million tonnes)* ||567.365 ||554.14 |
|Off-take of Coal (in million tonnes) ||580.287 ||543.32 |
|Sales (Gross) (Rs./Crores) ||127162.17 ||122286.96 |
|Capital Employed (Rs./Crores) Note- 1 ||55883.03 ||58300.67 |
|Capital Employed (Rs./Crores)- excluding capital work in progress and intangible assets under development ||42082.50 ||47940.07 |
|Net Worth (Rs./Crores) ||19827.37 ||24498.28 |
|Profit Before Tax (Rs./Crores) ||10726.44 ||14446.33 |
|Profit for the Period (Rs./Crores) ||7020.22 ||9279.77 |
|Total Comprehensive Income for the period (Rs./Crores) ||7652.73 ||9361.77 |
|Profit for the Period / Capital Employed (in %) ||12.56 ||15.92 |
|Profit before Tax / Net Worth (in %) ||54.10 ||58.97 |
|Profit for the period / Net Worth (in %) ||35.41 ||37.88 |
|Earning Per Share (Rs.) ||11.31 ||14.80 |
|(Considering Face Value of Rs.10 per share) || || |
|Dividend per Share (Rs.) ||16.50 ||19.90 |
|(Considering Face Value of Rs.10 per share) || || |
|Coal Stock (Net) (in terms of No. of months Net Sales) ||0.73 ||1.18 |
|Trade Receivables (Net) (in terms of No of Months Gross Sales) ||0.82 ||1.22 |
*Production and Offtake of Coal for FY 2017-18 includes 3.227 MT and 1.327 MT (FY2016-17 5.324 MT & 4.118 MT) in respect of Gare Palma IV/2&3 and Gare Palma IV/1OC Mine for which Coal India Ltd. has been appointed akin to a designated custodian w.e.f01.04.2015 (through SECL).
Note-1: Capital employed = Gross Block of Fixed assets (including capital work inprogress and intangible assets under development) less accumulated depreciation pluscurrent assets minus current liabilities.
Transfer to Reserves
During the year 2017-18 a sum of Rs. 544.89 crore (Rs. 510.75 crores) was transferredto General Reserve out of CIL Consolidated profits and amount of Rs. 483.80 crores wasutilized for issuing of bonus shares.
Capital reserve on consolidation includes Rs. 1548.45 crore recognised as utilizationof Capital Redemption Reserve General Reserve and Retained Earnings on issue of bonusshares by subsidiary companies viz. Northern Coalfields Limited (NCL) Mahanadi CoalfieldsLimited (MCL) South Eastern Coalfields Limited (SECL) and Coal Mine Planning andDesigning Institute Limited (CMPDIL) in the ratio of 4:1 4:1 7:5 and 1:1 respectively toCoal India Limited (holding Co.). No. of shares issued as Bonus Shares by NCL MCL SECLand CMPDIL are 5462372 equity shares of Rs. 1000 each 5649064 equity shares of Rs. 1000each 4182850 equity shares of Rs. 1000 and 190400 equity shares of Rs.1000 eachrespectively.
The Subsidiary wise break up of no. of equity shares issued are as follows :-
|Company ||Pre-Bonus Issue ||Post- Bonus Issue |
|ECL ||22184500 ||22184500 |
|BCCL ||21180000 ||21180000 |
|CCL ||9400000 ||9400000 |
|NCL ||1365593 ||6827965 |
|WCL ||2971000 ||2971000 |
|SECL ||2987750 ||7170600 |
|MCL ||1412266 ||7061330 |
|CMPDIL ||190400 ||380800 |
2.2 Dividend Income and Pay Outs (CIL Standalone)
While the financial statements of both CIL Standalone and CIL Consolidated arepresented separately only CIL Standalone is listed and relevant for dividend payment toits shareholders. The dividend to its shareholders are paid out of CIL's Standaloneincome the major part of which constitutes the dividend income received during 2017-18from its five profit making subsidiaries i.e. CCL NCL SECL MCL and CMPDIL. The breakupof such dividend received and accounted for during the year from different subsidiariesare given in Annexure 2.
During the year 2017-18 CIL Standalone has paid a total dividend (by way of interimdividend) of Rs. 10242.24 crores @ Rs.16.50 per share on 6207409177 number of EquityShares of Rs.10/- each fully paid up. Out of above total dividend the share of Govt ofIndia was Rs. 8044.86 crores and for other shareholders Rs. 2197.38 crores. (Earlier year- Govt of India- Rs. 9736.40 crores and Other shareholders - Rs. 2616.36 crores)
2.3 Supplementary Audit of Financial Statements by Comptroller and Auditor General ofIndia (C&AG)
The report from the C& AG is pending and the report and comments received onsupplementary audit of Standalone and Consolidated Financial Statements will be enclosedin Annexure 3 and Annexure 4.
2.4 Management Explanation on Statutory Auditor's Report Management Explanation onStatutory Auditor's Report
The statutory auditors of the company have given an unqualified report [Annexure3(A) and Annexure 4(A)] on the Standalone Financial Statements and ConsolidatedFinancial Statements respectively of the company for the financial year 2017-18. Howeverthey have drawn attention under 'Emphasis of Matter' on certain issues. These issues under'Emphasis of Matter' along with observations of the auditors elsewhere in the annexures ofthe audit report are enclosed as Annexure 5 & Annexure 5(A) respectivelywith Management explanation thereto.
3. COAL MARKETING
3.1 (a) Off-take of Raw Coal
Off-take of raw coal continued to maintain its upward trend and reached 580.284 milliontonnes for fiscal ended March 2018 surpassing previous highest figure of 543.32 milliontonnes achieved during the last year i.e. an increase of 6.8 % over the last year. Theoverall raw coal off-take achieved was 96.7% of the Annual Action Plan Target.
In the year 2017-18 ECL CCL NCL WCL SECL and NEC could outperform theirachievement of last year. NCL WCL & NEC had also exceeded its target. Company-wisetarget vis--vis actual off-take for 2017-18 and 2016-17 is shown in Annexure 6.
Offtake could have been more but for the following reasons:
Evacuation problem due to closure of Dhanbad Chandrapura line at Katras &Sijua Areas at BCCL.
Constraints of Rakes as per Indent at MCL & SECL.
Constraints of N -Box at NCL & CCL for movement to upward country.
Frequent Strikes at various mines of Talcher field in MCL & CCL.
Evacuation constraint of Magadh-Amrapali mines at CCL. Now Tori-Shivpur RailLine is commissioned upto Balumath dispatch from Magadh and Amrapali of CCL has startedfrom Balumath siding.
EC issues at Kusmunda mine of SECL.
Initiatives taken for enhancing off-take are as under:
Regular co-ordination with Railway at all levels including Railway Board tooptimize use of logistics resources available in the subsidiary coal companies analyzinginputs of the subsidiaries to identify alternate source for coal movement wherever andwhenever required to achieve overall sectoral targets and mitigating critical fuelrequirement of consuming sectors particularly power stations.
Coordination with MOC for various long and short-term policy decisions toovercome coal movement constraints for power and non-power sector consumers and takingoperational decisions for moving coal from various sources on contingent situations tomeet critical requirements of consuming sectors particularly power utilities etc.
Periodic Meetings and follow ups with Power producers in addressing issuesrelating to coal movement.
Source Rationalization of coal linkage for optimizing coal movement as per therequirement of the consumers and logistics.
At the preference of Power Utilities sources of supply to Power Plants arereadjusted on quarterly basis within the Aggregated ACQs under Flexi Utilisation Scheme.
Besides enhancing dispatches through Rail mode Power stations within thevicinity of 50-60 KM of the mines having FSA have been offered coal through Road/RCR modeto be lifted by their own transport arrangement for further augmenting the dispatch.
Ministry of Power has been requested to prevail upon the power plants situatedwithin 20 Kms to lift their entire requirement by Road mode from 2018-19 onwards toincrease availability of rakes for movement to long distance plants.
In the Meeting held on 22nd and 25th January 2018 takenby the Hon'ble MOS (I/C) for Power and New and Renewable Energy it was decided that allpower plants located within 20 km to 40 Km from pithead shall construct elevated closedbelt conveyors/ MGR within 2-3 years. Power plants located beyond 40 Kms and up 100 Km mayalso consider the option of MGR based on financial viability.
Initiative for long-term demand creation:
a) Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India SHAKTI.
b) Auction of coal linkages to Non-Regulated Sector.
Establishment of IMC(Initiatives Monitoring and Control Cell) at CIL HQ &Subsidiary coal companies for day to day monitoring of coal movement in coordination withRailways and Power companies.
Special E-Auction Schemes:-
From the year 2015-16 Special Forward E-Auction scheme introduced by MOC for meetingthe coal requirement of Power plants is being continued. During 2015-16 2016-17 &2017-18 around 13.8 Mill tes 47 Mill tes & 28.9 Mill tes coal was booked by thepower consumers under this scheme of e-auction respectively.
A similar scheme for consumers in the non - power sector was also launched as ExclusiveE-auction scheme for non-power. During 2015-16 2016-17 & 2017-18 around 1.5 Milltonnes 6.2 Mill tes & 11.1 Mill tonnes coal was booked by the non-power consumersunder this e-auction. Special Spot e-auction was also conducted during 2016-17 &2017-18 for the buyers of non-specified end use where 6.2 Mill tes & 0.7 Mill tes coalwas booked respectively.
(b) Sector-wise dispatch of coal & coal products:
In the year 2017-18 CIL dispatched 581.475 MT of Coal & Coal Products against theAAP target of 601.18 MT i.e. an achievement of 96.7%. CIL has dispatched 39 MT of coaland coal products more than last year with a growth of 7.2%.
A quantity of 454.224 MT of coal and coal products was despatched to power utilitiesagainst the target of 452.236 MT i.e. an achievement of 100.4%. This is 28.8 MT more thanlast year's dispatch of 425.397 MT resulting in a growth of 6.8%.
Sector-wise break-up of dispatch of coal & coal products for 2017-18 against thetarget and last year's actual are given in Annexure 7.
3.2 Dispatches of coal and coal products by various modes:
Dispatches of coal and coal products during 2017-18 went upto 581.475 million tonnesfrom 542.494 million tonnes registering a growth of 7.2%. Overall dispatch by Non-Railmode had been 102.7% of the target. Growth in despatches via Rail mode was 2.3 % and inthe overall Non-Rail mode by 13.3 %. Road despatches increased by 18% compared to theprevious year. Movement by MGR also increased by 8.7% compared to last year. Howeverdespatches through other modes like belt & rope decreased by 3.8 % compared to thelast year.
Dispatch of coal and coal products by various modes for the years 2017-18 and 2016-17are given in Annexure 8.
3.3 Wagon Loading
Overall wagon loading materialization was 92.8 % of the target. This was achieved dueto sustained efforts and regular coordination with railways at different levels. Theincrease in loading over last year was of 7.2 rakes per day. Company wise performanceshowed that ECL NCL WCL & NEC outperformed its target. ECL CCL NCL WCL & NECexceeded last year's level of loading.
Wagon loading performance of 2017-18 vis--vis 2016-17 is given in Annexure 9.
3.4 Consumer satisfaction
i. For enhanced customer satisfaction special emphasis has been given to QualityManagement of coal from mine to dispatch point.
ii. Continuing with the steps for independent assessment of grades of mines throughvarious academic institutes of national repute by CCO annual grade declaration of 2018-19has been finalized by CCO. Total 386 mines were re-assessed and out of these 61 mines aredowngraded and 42 mines are up-graded.
iii. In order to monitor coal quality a portal UTTAM (Unlocking Transparency by ThirdParty Assessment of Mined Coal) has been launched by CIL to capture entire life cycle ofsample. With the help of the portal information of coal quality on regular basis will beaccessible to both Coal Cos. and Consumers.
iv. CIL is supplying (-) 100mm sized coal to all power plants w. e. f. 01.01.2016except pit head plants having mutual agreement for sourcing (-) 250 mm coal. In additionto crushing facilities at coal handling plants mobile crushers are being installed tomeet the additional crushing requirement.
v. Emphasis has been given for maximum production of ()100 mm coal throughsurface miners. For this surface miners have been deployed for production of coal inmines wherever technically / commercially feasible. Total coal production through SurfaceMiners was 266 Mt in 2017-18 compared to 256 Mt in 2016-17 which constitute about 47% oftotal production of coal.
vi. Measures like picking of shale / stone selective mining by conventional modeadopting proper blasting procedure / technique for reducing the possibility of admixtureof coal with over-burden material & improved sizing of coal etc. are taken up.
vii. For better consumer satisfaction and enhanced transparency Third Party validationthrough transparent process of sampling & analysis facility has been extended for thefirst time to all customers including Spot E-Auction Special spot auction ExclusiveE-Auction and FSA consumers in Non-Power sector ( FSA against Pre NCDP linkage for low& medium demand ) including State Nominated Agencies through IIT-ISM and QCI.
viii. Area laboratories of subsidiary coal companies have been equipped with 121 BombCalorimeters for accurate and transparent measurement of GCV of coal samples. 43 labs.across the subsidiary companies have already got NABL accreditation and another 12 labsaccreditation process is underway. It is expected that standardization of the process asper NABL standard will go in a long way to enhance customers' confidence about the processof assessment of coal quality and facilitate quality monitoring.
ix. The guidelines / SOP issued by MoC vide letter dated 26.11.2015 on third partysampling at loading ends has already been implemented through Central Institute of Miningand Fuel Research (CIMFR). Sampling and analysis covering supply of about 529 Mt on annualbasis to power utilities has been taken up by CIMFR across various loading points of coalcompanies.
x. Electronic weighbridges with the facility of electronic printout have been installedat rail loading points to ensure that coal dispatches are made only after properweighment. Coal Companies have also taken action for installation of standby weighbridgesto ensure 100% weighment.
xi. 22 Auto Mechanical Samplers (AMS) are also working in subsidiary coal companies forcoal sampling eliminating chances of biasness in sampling process. Procurement of furtherAMS is under process. The process has been initiated to do a pilot study for deployment ofAugur Sampling equipment to draw samples without human intervention. xii. In order toensure consumer satisfaction and resolve consumer complaints special emphasis has beengiven to quality management and redressal of consumer complaint. On-line filing andredressal of complaints have been implemented.
3.5 Marketing of Coal:
Status of execution of Fuel Supply Agreements and performance of e-auction:
Supply of coal was made to various consumers including Power Sector under theapplicable provisions of New Coal Distribution Policy. Due to overall deficit inavailability of coal considering the projected coal production from domestic sources andcommitments made through signing of FSAs/issuance of Letter of Assurances (LOA) suppliesunder FSAs has been pegged at various level of commitments (trigger). Power sector beingthe major consuming sector having significant importance in the economy supplies to powersector has been guided as per the various Government directives and polices.
(i) For power stations commissioned on or before 31.03.2009 306 million tonnes hadbeen considered to be supplied through bilateral legally enforceable Fuel SupplyAgreements (FSA) with a trigger level of 90%. The total quantity covered under FSA againstthe allocation as on March'18 was about 295 million tonnes.
(ii) Apart from the above 181 Letter of Assurances have been issued to power plants bysubsidiary companies of CIL as per the recommendations of various SLC (LT) Meetings forabout 433.80 Million tonnes. Further as per Presidential Directives dated 16th April'2012and revised directive dated 17-7-2013 a list of Power Plants having an aggregate capacityof 78535 MW was notified for signing of FSA. A total 173 TPPs 149 cases having normal LOAand 24 cases having Tapering LOA (as per MOC OM dated 30.06.2015 tapering linkages are notexistent as on date) were listed. Till 31st March'2018 out of 149 regular LOAs 146 FSAshave been signed. The balance FSAs could not be signed for the reasons not attributable toCIL. However out of the above 1 FSA has been transferred to SCCL and 2 FSAs became nulland void since the plants have been converted from IPP to CPP.
For post-NCDP Plants (Plants commissioned after March 2009) total FSA commitment ofCIL as on date is for an Annual Contracted Quantity (ACQ) of about 227.33 Million tonnesfor the aggregate capacity of about 57571 MW which is backed by long term Power PurchaseAgreement (PPA) and qualify for commencement of coal supply subject to commissioning etc.
(iii) As on 1st April 2018 about 800 units other than power and steel plants haveoperative FSAs with subsidiaries of CIL for a quantity of about 57.4 million tonnes.
(iv) For supply of coal to Small and Medium and Other Consumers whose annual coalrequirement is less than 10000 tonnes 8 Mill tonnes was earmarked by CIL for allocationto agencies nominated by the State Govt's/ UT's for the year 2017-18. 15 States sent theirnomination of 19 State Agencies for the year 2017-18 of which 11 State Agencies of 10States have signed FSAs for 2.454 Mill. tonnes and drawing coal accordingly.
(v) CIL has conducted three tranches of Auction of Coal Linkages for Sponge IronCement CPP Steel (coking) and 'Others (non-coking & coking)' sub-sectors underNon-Regulated Sector during the period Jun'16 to Nov'17 in accordance with the policyguidelines dated 15.02.2016 issued by Ministry of Coal. The auction has been envisaged asa transparent system of linkage allocation which is based on competitive bidding. Variousconsumer friendly measures such as 3rd party sampling exit option no performanceincentive delivery from specified mine/siding back-up mine in the event of ForceMajeure etc. have also been introduced. The auction is followed by signing of Fuel SupplyAgreements (FSA) for the booked quantity. The tenure of the FSA is 5 years that can befurther extended by another 5 years on mutual agreement. The performance summary ofTranche I II & III of auctions is as under:
|Sub-sector ||Tranche - I ||Tranche - II ||Tranche -III ||Total |
| ||Quantity booked (MTPA) ||% gain ||Quantity booked (MTPA) ||% gain ||Quantity booked (MTPA) ||% gain ||Quantity booked (MTPA) ||% gain |
|Sponge Iron ||2.05 ||0.51 ||4.29 ||10.10 ||2.54 ||7.20 ||8.88 ||7.55 |
|Cement ||0.68 ||0.16 ||0.77 ||0.90 ||0.12 ||0.00 ||1.57 ||0.56 |
|CPP ||18.07 ||8.97 ||8.18 ||14.85 ||4.59 ||22.05 ||30.84 ||12.68 |
|Others ||1.34 ||0.76 ||1.27 ||5.14 ||0.67 ||10.60 ||3.28 ||4.50 |
|Steel (coking) ||-- ||-- ||0.22 ||0.00 ||0.00 ||-- ||0.22 ||0.00 |
|Others (coking) ||-- ||-- ||0.04 ||0.00 ||0.36 ||2.97 ||0.39 ||2.68 |
|Total ||22.14 ||6.95% ||14.76 ||10.60% ||8.28 ||13.37% ||45.18 ||9.64% |
Note : % gain over non-power notified price
(vi) Under Special Forward E Auction scheme during the year 2017-18 successful bidquantity was around 29 mill tonnes as against 47 mill tonnes in the last year. The premiumgain through Special Forward E-auction over & above the notified price was 27% duringthe year 2017-18 as against 16% during 2016-17. In Exclusive E Auction scheme during2017-18 successful bid quantity was around 11.1 mill tonnes as against 6.3 mill tonnes inthe last financial year. The premium gain through Exclusive E-auction over & above thenotified price was around 27% during the year 2017-18 as against 9.3% in last financialyear. During the period under review around 55.1 mill. tonnes of coal was successfullybid under Spot E- auction to the successful bidders as against 53.7 mill. tonnes ofsuccessful bid quantity during 2016-17. The notional gain through Spot E-auction over& above the notified price was 66% during the year 2017-18 as against 25% during lastfinancial year. About 0.7 Mill tes coal was successfully bid under Special Spot E-Auctionduring 2017-18 with gain of 39% over notified price whereas during last financial yearabout 6.2 Mill tonnes coal was successfully bid under this scheme with 20% gain overnotified price.
Implementation of SHAKTI Policy of Government :
In consideration of the stressed assets in new power projects not having any long termlinkages on 17.05.2017 Cabinet Committee on Economic Affairs (CCEA) approved a newpolicy for allocation of future coal linkages in a transparent manner for such powersector consumers. This policy is known as 'Scheme for Harnessing and Allocating Koyala(Coal) Transparently in India' (SHAKTI). The policy is an important initiative inalleviating a key challenge in power sector i.e. lack of coal linkage and is expected topositively contribute in resolution of a number of stressed assets. Ministry of Coal (MoC)circulated the policy guidelines vide their letter dated 22.05.2017.
The salient features of the policy are:
(A) Under the old regime of LoA-FSA :
i. FSA may be signed with the pending LoA holders after ensuring that the plants arecommissioned by 31.03.2022.
ii. The 583 pending application for LoA may be closed.
iii. The capacities totaling 68000 MW as per CCEA decision dated 21.06.2013 wouldcontinue to get coal at 75% of ACQ even beyond 31.03.2017.
iv. About 19000 MW capacity out of 68000 MW which could not be commissioned by31.03.2015 may be allowed coal supply under FSA at 75% of ACQ provided these plants arecommissioned within 31.03.2022.
v. Actual coal supply to power plants shall be to the extent of long term PPA andmedium term PPAs to be concluded in future against bids to be invited by Discoms as perbidding guidelines issued by MoP.
With these the old regime of LoA-FSA would come to finality and fade away.
(B) Following to be considered under new more transparent coal allocation policy forpower sector 2017-SHAKTI (Scheme for Harnessing and Allocating Koyala (coal)Transparently in India)
i. CIL/ SCCL may grant coal linkages to State/Central Gencos/JVs at notified price onrecommendations of Ministry of Power.
ii. Linkages to IPP having PPA based on domestic coal but no linkage:
a. shall be on auction basis where bidders shall quote discount on tariff.
b. Bid Evaluation Criteria shall be the non-zero Levellised Value of the discount.
iii. Linkages to IPPs/ Power Producers without PPAs shall be on auction basis wheremethodology would be similar to that followed under linkage auction to non-regulatedsector i.e. the bidders would bid for premium above the notified price of the coalcompany.
iv. Coal linkages may also be earmarked for fresh PPAs by pre-declaring theavailability of coal linkage with description to the States.
States may indicate these linkages to Discoms/ SDAs.
v. Power requirement of group of States can also be aggregated and procurement of suchaggregated power can be made by an agency designated by Ministry of Power or authorized bysuch States on the basis of tariff based bidding.Linkages shall be granted for fullnormative quantity to Special Purpose Vehicle (SPV) incorporated by nominated agency forsetting up Ultra Mega Power Projects (UMPP) under Central Government initiative throughtariff based competitive under the guidelines for determination of tariff on therecommendation of MoP.
vi. MoC in consultation with MoP may formulate a detailed methodology of a transparentbidding process for allocating coal linkages to IPPs having PPAs based on imported coalwith full pass through of cost saving to consumers.
Under A (i) of SHAKTI Policy 3 FSAs have been signed for 11.91 MT for the aggregatedcapacity of 3300 MW and under B(i) 1 FSA has been signed for 3.927 MT for the capacity of1200 MW till 31st March18.
CIL successfully conducted Linkage Auction under the B(ii) provision for the Plantshaving PPAs but no linkages through a bidding based on tariff discount in September 2017.Out of 31 bidders who submitted EOI 14 bidders were found eligible by CEA and 10 bidderssubmitted EMD and turned out successful for booking 27.18 MTPA.
Flexi Utilization of Domestic Coal for reducing cost of Power generation:
Government introduced a policy for flexi utilization of domestic coal by State/CentralGencos to reduce the cost of electricity in June 2016 following approval of Cabinet. Underthe policy State/Central Gencos are allowed to aggregate their contracted quantity forsupply to Plants on efficiency based parameters to reduce cost of power generation. CILimplemented the policy through signing of a supplementary agreement with the State/Central Gencos in April 2017. Out of a total annual contracted quantity of 419.9 MTPA withState/Central/CPSE Utilities CIL signed supplementary agreement for 416.1 MTPA covering99.1%.
3.6 Coal Beneficiation:
Presently CIL is operating 15 Coal Washeries with a total coal washing capacity of 36.8million tonnes per year of which 11 are coking and the rest are non-coking with capacityof 20.58 and 16.22 MTY respectively. The total washed coal production from these existingwasheries for the year 2017-18 has been 12.45 Million Tonnes.
In addition to above CIL has planned to set up 18 new Washeries with state-of-the-arttechnologies in the field of coal beneficiation with an aggregate throughput capacity of95.6 MTY#.
Out of these washeries 9 are planned to wash coking coal with a cumulative capacity of28.10 Mty and the other 9 are being set up to wash non-coking coal with an aggregatecapacity of 67.5 Mty# The major bottlenecks for setting up of these washeries are mainlyavailability of Land Forest Environmental and other Statutory Clearances Failure of L1bidders to comply to tender requirements etc in addition to the absence of firmcommitment from the intended customers regarding acceptance of washed coal at value addedprices.
# Ashoka Non-coking coal Washery capacity is being planned to be enhanced by 2 Mty.Presently it is planned to be a 2 Mty. Washery.
3.7 Stock of Coal
The stock of coal (net of provisions) at the close of the year 2017-18 was Rs. 4979.09Crores (earlier year Rs. 7412.79 crores) which was equivalent to 0.73 month value of netsales (previous year 1.18 months). The company-wise position of stock held on 31st March2018 & on 31st March 2017 are given in Annexure 10.
3.8 Trade Receivables
Trade Receivables i.e. net coal sales dues outstanding as on 31.03.2018 afterproviding Rs. 1778.37 crores (previous year Rs. 2013.99 crores) for bad and doubtfuldebts was Rs. 8689.16 crores (previous year Rs. 12476.27 crores) which is equivalent to0.82 months gross sales of CIL as a whole (previous year 1.05 months). Subsidiary-wisebreak-up of trade receivables outstanding as on 31st March 2018 as against 31st March 2017are shown in Annexure 11.
3.9 Payment of Royalty Cess Sales Tax Stowing Excise Duty Central Excise DutyClean Energy Cess Entry Tax & Others
During the year 2017-18 CIL and its Subsidiaries paid/adjusted Rs. 44046.57 crores(previous year Rs. 44068.28 crores) towards Royalty Cess Sales Tax and other levies asdetailed below:-
Figures in Rs. Crores
|Particulars ||2017-18 ||2016-17 |
|Royalty ||9993.84 ||8745.84 |
|Additional Royalty (MMDR Act): || || |
|-DMF ||2982.26 ||3964.47 |
|-NMET ||204.14 ||221.16 |
|Goods and Service Tax : || || |
|-CGST ||891.43 ||- |
|-SGST ||892.92 ||- |
|-IGST ||903.67 ||- |
|GST Compensation Cess ||16631.78 ||- |
|Cess on Coal ||1631.63 ||1706.37 |
|State Sales Tax / VAT ||903.66 ||2787.91 |
|Central Sales Tax ||204.51 ||1200.09 |
|Stowing Excise Duty ||217.47 ||538.00 |
|Central Excise Duty ||512.64 ||2617.56 |
|Clean Energy Cess ||7099.73 ||21062.06 |
|Entry Tax ||77.80 ||283.82 |
|Others ||899.09 ||941.00 |
|Total ||44046.57 ||44068.28 |
Subsidiary-wise State wise details are given in Annexure 12.
4. COAL PRODUCTION & FUTURE OUTLOOK
Raw coal production and production from underground and opencast mines.
Production of raw coal was 567.36 Mill Te during 2017-18 compared to 554.14 Mill Teduring 2016-17. Coal production from underground mines in 2017-18 was 30.54 Mill Tecompared to 31.48 Mill Te during 2016-17. Production from opencast mines during 2017-18was 94.62% of total raw coal production. Subsidiary wise production production fromunderground and opencast mines and coking and non-coking production is disclosed under Annexure13.
Reasons for less production than the target 2017-18 :
Despite best and consistent efforts constraints that have impeded the growth in coalproduction are as under:
(i) Issue of Land acquisition physical possession of land demand of compensationbeyond company norms and R&R affected production in many of the subsidiaries of CIL.
(ii) Delay in grant of enhanced EC capacity and forestry clearance also played a majorrole in loss of production.
(iii) Law and Order problem by local leaders and villagers in almost all thesubsidiaries specially ECL BCCL CCL and MCL.
(iv) Sudden stoppage of Dhanbad-Chandrapura railway line affected production in BCCL.
(v) Evacuation constraint at Magadh and Amrapali OCP due to non-completion ofTori-Shibpur railway track affected coal production in CCL.
(vi) Accumulation of high coal stock at many of the cost plus OC mines due to lesslifting by consumer affected production in WCL.
Washed Coal (Coking) Production
Subsidiary-wise production of Washed Coal (Coking) is given in Annexure 13A.
Company-wise overburden removal is disclosed in Annexure 13B.
With continued commitment to play major role in achieving nation's energy security CILis poised to set an ambitious target of 610 Mt. in the FY 2018-19 with an annualizedgrowth of about 7.52 % over the production of 567.36 Mt. achieved in 17-18.
As per one Billion tonne document prepared in 2014-15 CIL was mandated toproduce 908.01 Mt by the year 2019-20 subject to timely grant of EC & FC landacquisition/possession and associated R & R coal evacuation facilities allocation ofcoal blocks & other relevant issues. Meanwhile consequent upon the outcome of ParisProtocol on climate change and changes in the environmental paradigm and coal demandthere was an urgent need of revisiting the 1 Bt. programme. Ministry of Coal is now in theprocess of finalizing the Vision 2030 document for coal sector through a reputedconsultant in which projection for likely demand of coal in the country are being assessedunder different scenarios considering the views of Ministry of Power & Scenarioemerged due to Paris protocol etc. The document is likely to be finalized shortly. In viewof above roadmap for coal production beyond 2018-19 along with other related issues wouldbe relooked on the basis of that demand forecast. In the light of Paris Protocol andconsequent upon changes in world energy sector scenario CIL is looking forward todiversify its operations towards Renewable energy like Solar Power and Clean Energysources like CMM CBM CTL UCG etc following the directives of GoI. Following to thatmission MoC/CIL is in the process of finalising 'Vision Document 2030' to decideon future course of operation for sustainable entity in the nation's energy sector.
The capital expenditure for the year 2018-19 has been set at Rs. 9500 crores. FurtherCIL has planned to invest substantial amount in various other projects viz. Ultra MegaPower Project (UMPP) Solar Power Revival of Fertilizer Plants acquiring coking coalassets in Australia and Canada Coal Gasification CBM etc. during 2018-19.
5. POPULATION OF EQUIPMENT
The Population of Major Opencast Equipment (Heavy Earth Moving Machinery) as on1.4.2018 and as on 1.4.2017 alongwith their Performance in terms of Availability &Utilization expressed as percentage of CMPDI Norm is disclosed in Annexure 14.
There are increase of 37 nos. of Shovel in ECLBCCLNCL & WCL on receipt of NewEquipment ordered. CIL is planning to procure 6 nos. Dragline valued approximately Rs.1176 Crores 77 nos. Shovel valued approximately Rs. 2344 Crores 342 nos. Dumper valuedapproximately Rs. 4213 Crores 119 nos. Dozer valued approximately Rs. 419 Crores and 33nos. Drill valued approximately Rs. 50 Crores in the next 3 years. Performance of HECShovel at MCL was not satisfactory which affected availabilty and utilization. Matter hasbeen taken up with M/s HEC for improvement. Dragline of Sonepur Bazari Project ECL hasbeen commissioned in December 2017 which was under long breakdown since June 2016 due tonon-supply of imported spares.
Land Problem Rehabilitation problem shortage of working face were major reason forless HEMM Utilization in ECL BCCL & CCL and exhaustion of coal reserve in some of themines at SECL &WCL were the major hindrace of HEMM Utilization. Efforts are being madeto improve the utilization.
6. CAPACITY UTILIZATION
The overall system capacity utilisation for the year 2017-18 was 83.30% against 84.51%in 2016-17. Subsidiary wise reasons for less achievement in capacity utilisation are asunder :-
ECL : Both production and offtake of Rajmahal OC suffered due to R&R issues inrespect to Bhadutola village involving shifting of villagers which could be resolved inthe month of Jun'17 and completed in Feb'18. Other major issues are-delay in Stage-II FCin Chitra OC R&R problem in New Kenda mines R&R issue in Khottadih OC forshifting of Bilpahar village etc.
BCCL : Sudden stoppage of Dhanbad-Chadrapura railway line for safety reasons onshort notice had affected coal dispatch and consequently both production and offtake wasslowed down from Kusunda Sijua Katras and Govindpur areas.
CCL : Delay in grant of enhancement of EC capacity for Karo OC and Selected DhoriOC resulting into stoppages of those mines from Nov'17 evacuation problem in Magadh &Amrapali OC contributed lower overall capacity utilisation of CCL.
NCL : Under performance of one of the contractor engaged at Bina Project for OBremoval working.
WCL : Less lifting of coal from cost plus mines of Bhatadih Urdhan R&R issuesat Pauni 2&3 underperformance of contractor of Dinesh MKD 1 etc.
SECL : Delay in grant in EC at Gevra Kusmunda delay in possession of land inBatura Bijari mines.
MCL : FC issues in Ananta & Hingula Land and R&R issues in KanihaBalaram Hingula Bharatpur mines. Delay in grant of EC at Kulda Bhubaneswari Lakhanpurunder special dispensation.
Subsidiary wise details for the year 2017-18 vis--vis 2016-17 are disclosed in Annexure15.
7. PROJECT FORMULATION
7.1 Project Implementation:
a) Projects Completed During the year 2017-18:
10 coal projects with an ultimate capacity of 41.39 Mty with sanctioned capital of Rs.1524.27 Crores have been completed during the year 2017-18. The subsidiary-wise details ofproject completed during 2017-18 are disclosed in Annexure 16. b) Projectsstarted Production during the Year 2017-18: NIL c) Status of Ongoing Projects:
114 coal projects costing Rs. 20 Crores and above are in different stages ofimplementation. Out of 114 coal projects 55 projects are running on schedule and 59 aredelayed.
Status of Ongoing Projects Costing Rs. 20 Crores and above
|Projects ||Total Projects ||Projects On Schedule ||Projects Delayed |
|Mining ||114 ||55 ||59 |
Reasons for the Delay :
59 projects are delayed due reasons as furnished below:
|Reasons of Delay ||No of delayed projects |
|ISSUES IN EXECUTION OF TENDERS ||12 |
|GRANT OF FC ||18 |
|FC LAND & R&R ||2 |
|LAND & R&R ||13 |
|RECAST PR UNDER FINALIZATION ||7 |
|EVACUATION FACILITY ||3 |
|R&R ||1 |
|OTHERS ||3 |
|TOTAL ||59 |
7.2 Projects Sanctioned (Costing Rs. 20 Crores & above):
a) Projects sanctioned by CIL Board
4 coal mining projects for an ultimate capacity of 24.60 Mty with a total capitalinvestment of Rs. 4155.46 Crores have been sanctioned by CIL Board during the year2017-18. The details are disclosed in Annexure 16.
b) Non Mining Projects Sanctioned by CIL Board:
Only one Non-mining project has been sanctioned by CIL Board during the year 2017-18.The details are disclosed in Annexure 16.
c) Projects Sanctioned by Subsidiary Company Boards: NIL
d) Non Mining Projects sanctioned by Subsidiary Boards
6 Non mining projects with a capital of Rs. 1473.32 Crores. have been sanctioned bysubsidiary Boards during the year 2017-18. The details are disclosed in Annexure 16.
7.3 Revised Project/RCE Sanctioned by CIL Board: a) RCE/RPR/UCE sanctioned by theCIL Board during the year 2017 - 18 was as under: -
|Project ||Subsidiary ||Date of Approval ||Sanctioned Capacity (Mty) ||Sanctioned Capital (Rs. Crores) |
|RCE of Lekhapani OCP ||NEC/CIL ||05-10-2017 ||0.25 ||109.44 |
| ||TOTAL || ||0.25 ||109.44 |
b) RCE/RPR/UCE sanctioned by the Subsidiary Coal Companies during the year 2017-2018: -NIL 7.4 Key Strategies: (i) Critical Railway Links:
In order to achieve the planned growth in production and evacuation in future CIL hasundertaken major Railway Infrastructure Projects implemented either by Railways or JVCompanies formed with IRCON representing Railways Subsidiary Company representing CIL andconcerned State Government.
The following lines have been completed during 2017-18 and commissioned as indicated:
The Tori-Shivpur Single line upto Bukru commissioned on 09.03.2018.
The Jharsuguda Barpali Line has been commissioned on 05.04.2018
13 projects for coal evacuation have been identified:
3 funded by coal companies.
4 funded through SPVs.
6 Railway funded projects.
On deposit Basis by CIL (3 Nos)
1. Tori - Shivpur (Double BG Line).
2. Jharsuguda - Barpalli Sardega Rail link (SECR) - Commissioned on 05.04.2018.
3. Rail Connectivity Lingaraj Silo with existing Deulbeda siding at Talcher Coalfieldsof MCL.
To be taken up by Railways (2 Nos)
1. Singrauli to Shaktinagar via Karaila Road (Doubling of the line) (EC Railways).
2. 4th line in Jharsuguda to Bilaspur (SECR).
Through JVs/SPVs by CIL (1 No)
1. Angul- Balram rail link (through MCRL).
The balance 7 rail lines that are likely to facilitate coal evacuation are envisaged tocome up in the future as detailed below:
Through JVs/SPVs by CIL (3 Nos)
1. Shivpur-Kathautia Railway Line.
2. East Corridor through CERL.
3. East-West Corridor through CEWRL.
To be taken up by Railways (4 Nos)
1. Third line Barkakana-Barwadih-Garhwa Road.
2. Fourth line Jharsuguda to Bilaspur.
3. DFC- Dadri to Sonenagar & extension upto Koderma.
4. Third and fourth lines from Talcher to Budhapunk (10 km) & Third line fromBudhapunk to Rajatgarh (62 km).
(ii) Acquisition and Possession of land:
In all subsidiaries of Coal India the major portion of land is acquired under the CoalBearing Areas (Acquisition & Development) Act 1957. During 2017-18 notificationunder section 9(1) has been issued for 10688.904 Ha and notification under section 11(1)has been issued for 11899.112 Ha.
During 2017-18 3687.61 Ha of land has been taken in possession in differentsubsidiaries of Coal India.
(iii) WEB Based Online Monitoring System:
Monitoring of 69 coal mining projects costing more than Rs. 150 Crores with Projectmonitoring software MS Project have been started in Coal India limited during the year2016-17. Regular interactions with subsidiaries is being done. Regular workshops are alsobeing organised to train the executives in MS Project software.
Project Monitoring Division of CIL in association with CMPDI recently launched a portalMDMS (Mine Data Base Management System) to monitor the ongoing projects costing Rs. 20Crores and above in CIL.
Crucial issues are also being uploaded by CIL and its subsidiary companies on the MOCe-CPMP portal and MOC is vigorously following up with the state governments and otherassociated ministries by holding meetings with concerned officials to expedite EC & FCapprovals.
7.5 One Billion Coal Production Programme
Ministry of Coal is preparing Vision 2030 document for coal sector through a reputedconsultant in which projection for likely demand of coal in the country are being assessedunder different scenarios considering the views of Ministry of Power & Scenarioemerged due to Paris protocol. The document will be finalized shortly. In view of aboveroadmap for coal production beyond 2018-19 along with other related issues would berelooked on the basis of that demand forecast.
Based upon the studies of the consultant it has been envisaged to match the coalproduction plan of CIL as per emerging market scenario which requires CIL to augment coalproduction of 1 Bt. by FY 2025-26 for which conceptual planning is underway at differentlevel.
8. CONSERVATION OF ENERGY
Conservation of energy always remains a priority area and CIL/Subsidiaries haveextensively exercised various measures towards reduction in specific energyconsumption.Even though Coal Production has increased by 2.4% in 2017-18 compared to2016-17 electricity consumption has reduced to 4605.70 Million Units vis--vis 4886.83Million Units during 2016-17 a reduction of 5.75% in absolute terms. In terms of totalcoal production Electricity Consumption during 2017-18 was 8.11 kWh/T vis--vis 8.82kWh/T during 2016-17 with a reduction of 8.05%. However in terms of composite productionSpecific Energy Consumption (kWh/CuM) during 2017-18 was 2.99 kWh/CuM vis--vis 3.19 kWh/CuM during 2016-17 a reduction of 6.27% from previous year.
Some of the salient measures taken by CIL/Subsidiaries for energy conservation arestated below :-
CMPDIL has undertaken energy conservation studies in 2017-18 and carried outDiesel Audit & Benchmarking of specific diesel consumption as well as Electrical Audit& Benchmarking of specific electrical energy consumption in various opencast andunderground mines situated in different subsidiaries of Coal India Limited by BEE (Bureauof Energy Efficiency) accredited Energy Auditors.
Diesel Audit and Benchmarking carried out by CMPDIL in 91 opencast mines in differentsubsidiary companies of CIL revealed an aggregate saving potential of 17173 kilolitres/year in diesel consumption.
Electrical Audit and Benchmarking carried out in 04 mines (03 opencast mines and 01underground mine) revealed an aggregate saving potential of 42.4 million units/year.
MoU has been signed between CIL and EESL (Energy Efficiency Services Limited) on08.02.2016 for implementation of Energy Efficiency Projects in CIL and its Subsidiaries.
Accordingly high watt luminaries /conventional light fittings are being replaced withlow power consuming LEDs of appropriate wattage in majority of the places for streetlighting office and other work places townships etc. thereby creating huge savingpotential in electricity consumption.
Power capacitors of appropriate kVAR rating have been installed to maintainhigher power factor and avail maximum benefit on power factor incentive from power supplyagencies as well as reduction in Maximum Demand. Almost all the areas of the subsidiariescompanies have maintained Power Factor as high as 95% during 2017-18.
Air Conditioners (AC) and Refrigerators of 5 Star Rating have been procuredagainst replacement of old conventional ACs and Refrigerators in different areas ofsubsidiaries.
Energy audit of selected projects have been conducted by CMPDIL
In addition to above some additional measures are being taken by CIL /Subsidiaries for conservation of energy some of which are as follows:
Auto timer based on-off switches in most of the street lighting CHPs andtownship areas to ensure avoiding unnecessary power consumption during odd hours.
Construction of strata bunkers in underground (UG) mines to eliminate idlerunning of belt conveyors thereby saving electricity.
Re-organization of LT (Low Tension) overhead line by Aerial Bunched Cable toavoid unauthorized power tapping.
Monitoring of load pattern and demand side management of supply points limitingmaximum demand wherever practicable by staggering avoidable load from peak hours tooff-peak hours.
Re-organizing of dewatering pipelines and reduction of stage pumping as far aspracticable.
Re-organization of power distribution system to minimize distribution loss.
Laying of cables directly through bore holes for power supply to undergroundmines to reduce overall length wherever feasible. The above measures taken for energyconservation are indicative only and not exhaustive.
In addition to above CIL / Subsidiary Companies are also pursuing use of alternativeenergy sources. Various steps have been taken for utilizing solar power as alternatesources of energy some of which are as stated below :
In kilo-watt scale roof top solar plants are in successful operation at variousplaces since their commissioning. Some of these operating plants are at Corporate Officeof Coal India Ltd New town Kolkata (160 kWp) CMPDIL HQ and regional institute (351kWp)different areas of ECL (148kWp) Nagpur and Ballarpur area of WCL (140kWp) HQ officebuilding and Barkakana of CCL (425kWp) etc.
In megawatt scale one ground-mounted solar power plant (2.016 MWp) is inoperation at MCL HQ since it's commissioning on 13.10.2014.
9. CAPITAL EXPENDITURE
Overall Capital Expenditure during 2017-18 was Rs. 9334.55 crores as against Rs.7700.06 crores in previous year. Capital Expenditure incurred during 2017-18 is 121.23%of BE (99.16% in 2016-17). Subsidiary-wise details of which are given in Annexure 17.
10. CAPITAL STRUCTURE
The authorized share capital of the company as on 31.03.2018 was Rs. 8904.18 croresdistributed between Equity and Non-cumulative redeemable preference shares as under:
|8000000000 Equity Shares of Rs. 10/- each (Previous Year 8000000000 Equity Shares of Rs.10/- each) ||Rs. ||8000.00 crores |
|9041800 Non-cumulative 10% redeemable Preference Shares of Rs. 1000/- each (Previous Year 9041800 Non-cumulative 10% Redeemable Preference Shares of Rs. 1000/- each) ||Rs. ||904.18 crores |
|Total ||Rs. ||8904.18 crores |
Listing of shares of Coal India Limited in Stock Exchanges:
The shares of Coal India Ltd. is listed in two major stock exchanges of India viz.Bombay Stock Exchange and National Stock Exchange on and from 4th November 2010.
Post buy-back on 28.10.2016 the number of fully paid equity shares as on date standsat 6207409177. During the year there is no change in number of shares.
The details of disinvestment of shares by Govt. of India is furnished below:
|Sl. No. ||Financial Year of Disinvestment ||% of shares disinvested ||No. of shares disinvested ||Mode |
|1 ||2010-11 ||10.00% ||631636440 ||IPO |
|2 ||2013-14 ||0.35% ||22037834 ||CPSE-ETF |
|3 ||2014-15 ||10.00% ||631636440 ||OFS |
|4 ||2015-16 ||0.001% ||83104 ||CPSE-ETF |
|5 ||2016-17 ||1.248% ||78842816 ||Buyback |
|6 ||2016-17 ||0.92% ||57156437 ||CPSE-ETF |
|7 ||2017-18 ||0.31% ||19299613 ||Bharat 22-ETF |
Hence the number of shares held by Govt. of India as on 31.03.2018 stood at4875671716 i.e.78.546% of the total 6207409177 number of shares (earlier year4894971329 i.e. 78.857% of total number of shares ). Pursuant to above theshareholding pattern in CIL stood as follows:
|Particulars ||As on 31.03.2018 ||As on 31.03.2017 |
| ||Shareholding Pattern (%) ||Share Capital (Rs. Crore) ||Shareholding Pattern (%) ||Share Capital (Rs. Crore) |
|Government of India ||78.546 % ||4875.67 ||78.857 % ||4894.97 |
|Other Investors ||21.454% ||1331.74 ||21.143% ||1312.44 |
|Total ||100.000% ||6207.41 ||100.000% ||6207.41 |
Aggregate borrowings of CIL (including Current and Non-Current) stood at Rs. 1061.18crores in 2017-18 from Rs. 410.77 crores in 2016-17 as detailed below.
| || ||Figures in Rs. Crores |
|Particulars ||2017-18 ||2016-17 |
|Foreign Loans including deferred credits || || |
|EDC Canada ||161.20 ||167.2 |
|Banque Nationale De Paris and Natexis Banque France ||7.09 ||6.64 |
|Term loan from other Banks ||838.86 ||- |
|IRCON International Ltd. ||39.01 ||171.44 |
|Chattisgarh State Infrastructure Development Corpn Ltd. ||15.02 ||65.41 |
|TOTAL ||1061.18 ||410.69 |
In addition to the above Short term Borrowings of CIL stood at Rs. 476.54 crores in2017-18 from Rs. 2603.78 crores in 2016-17 as detailed below.
|Particulars ||2017-18 ||2016-17 |
|Loan repayable on demand || || |
|- From Banks ||150.00 ||2603.78 |
|- From Other Parties ||- ||- |
|Other Loans ||326.54 ||- |
|TOTAL ||476.54 ||2603.78 |
The debt servicing has been duly met in case of the loans / deferred credits wheneverdue.
The subsidiary companies of SECL M/s Chattisgarh East Railway Limited (CERL) & M/sChattisgarh East-West Railway Limited (CEWRL) have taken loan from IRCON International Ltdand Chattisgarh State Infrastructure Development Corpn Ltd. with repayment period of 5years excluding moratorium period not exceeding 5 years from the date of signing of LoanAgreement.
12. INTERNATIONAL CO-OPERATION
Coal India is envisaged for foreign collaboration with a view to:
Bring in proven and advanced technologies and management skills for exploitingUG and OC mines coal preparation coal utilization protection of environment and relatedactivities.
Exploration and exploitation of Methane from Coal bed abandoned mineventilation air shale gas coal gasification etc.
Locating overseas countries interested in Joint Venture in the field of coalmining with special thrust on coking coal mining.
The priority areas included acquisition of modern and high productive undergroundmining technology introduction of high productive opencast mining technology improvementin working in underground in difficult geological conditions fire control and minesafety coal preparation application of 3D seismic survey for exploration extraction ofcoal bed methane coal gasification application of Geographical Information System (GIS)satellite surveillance subsidence monitoring environmental control overseas ventures incoal mining.
CIL aims to acquire suitable technology through international bidding. Bi-lateralcooperation is also being encouraged for locating availability of cost effective andlatest technologies in the aforesaid areas. CIL therefore has been following both theroutes.
Following are the details of activities that took place with various countries during2017-18.
Indo-US Collaboration: Status of On-going Projects:
a) Development of Coal Preparation Plant Simulator
The identified US consultant M/s Sharpe International LLC USA (SI) was awarded thework in October 2009 for development of a Coal Preparation Plant Simulator. Total work wassplit into 18 activities out of which 11 activities were completed and payment to the tuneof 40% value (USD 150000) had been released in line with provision of the contract. Laterin October 2013 SI expressed their inability to complete the work. US representativeswere requested to take up the matter with Mr. Mark Sharpe of SI for a meaningfulconclusion of the project. US side had advised to contact Mr. Carl Jacobson in thisregard.
Consequently Mr. Carl Jacobson was contacted for submission of a proposal forexecution of the project within the framework of existing agreement. From the perusal ofthe proposal submitted by him it was noted that M/s CoalSim was responsible for thedevelopment of software based on the mining engineering expertise provided by Mr. MarkSharpe.
Further Mr. Manoj Mohanty from Southern Illinois University (SIU) Carbondale USA videhis email dated 08.01.2016 expressed desire "to complete the project that SI couldnot complete". Mr. Mohanty was requested to submit his proposal through US DoE andMoC as the project was identified under Indo-US Coal Working Group work plan.Subsequently a Proposal from Mr. Mohanty was received through US DoE and MoC Govt. ofIndia. Comments of CMPDI in this regard were sent to Advisor (Projects) MoC on 03.10.16and also to Mr. Smouse Scott of DoE on 27.10.2016. In response to the queries raised byDr. Mohanty of SIU (vide e-mail dated 07.11.2016 forwarded by Dr. Scott Smouse of US DOE)suitable reply was sent on 23.11.2016.
On 22.12.2016 Dr. Scott Smouse of US DOE sent the reply as mailed to him by Dr.Mohanty indicating the project direct cost for the subject assignment with Power Planteconomics increased substantially to US$ 350000 + additional 47.5% charge on the projectdirect cost as research overhead expenses.
CMPDI vide email dated 09.01.2017 requested Dr. Scott Smouse to look into the matterand asked Dr. Mohanty to respond accordingly so that the final proposal can be preparedand submitted at the earliest with due consideration to fund limitation as the balancefund left in the project is US$ 225000. Meanwhile with special initiative of Dr. ScottSmouse discussion between the expert team of CMPDI and Dr. Mohanty was held on 11.05.17on various technical issues for formulation of the revised project proposal. Dr. Mohantyopined that he would submit a revised proposal in Sept. 2017 with revised project cost toDr. Scout Smouse of US DOE for his review. The outcome of the meeting is to be discussedduring the next Indo-US CWG meeting.
In reply to the query on the status of project submission (vide e-mail 25.08.2017) Dr.Mohanty has shown his eagerness (vide e-mail dated 31.08.2017) and desired to involveIIT-ISM Dhanbad in the project. Further Dr. Mohanty vide his email dated 12.09.2017communicated that the project cost would be USD 400000+44% overhead cost and alsosuggested to find somebody else who can complete the project within the recommendedbudget.
In reply to the above CMPDI once again requested Dr. Mohanty vide email dated25.09.2017 and 20.12.2017 to submit the project proposal as per the prescribed format(incorporating the observations of CMPDI on the earlier project proposal as communicatedto him vide email dated 07.09.2017) to complete the remaining activities of the projectutilizing the balance fund available (i.e. USD 225000) in the project. On confirmationfrom Dr. Mohanty appropriate decision can be taken in this regard. In reply Dr. ScottSmouse of US DoE vide his email dated 20.12.2017 suggested some possibilities for furthercontinuation of the project. The same is under consideration.
b) Cost Effective Technology for Beneficiation and Recovery of Fine Coal
US DOE had identified Virginia Tech University (VTU) for establishing an efficienttechnique for beneficiation & dewatering of Indian coking coal fines through thetesting of coal samples in lab and pilot plants at VTU for identification ofstate-of-the-art technologies based on which a demonstration plant was to be installed inSudamdih Washery in BCCL. A joint project proposal was drawn and approved by CIL R&DBoard in June 2008. The VTU however expressed its inability to sign an internationalagreement and as such the project could not be started.
During the 10th Indo-US CWG meeting in New Delhi on 10.03.2014 US representatives wererequested to take up the matter with VTU for meaningful conclusion of the project. US sidehad advised to contact Dr. Roe Hoan Yoon of Virginia Tech for further discussion in thisregard. Subsequently the issue was taken up with Dr. Roe Hoan Yoon to obtain methodologyfor execution of the assignment. Dr. Yoon informed that VTU had developed aHydrophobic-Hydrophilic Separation (HHS) process for fine Coal Cleaning and would besubmitting a proposal on the same. However since the project was identified under Indo-USCoal Working Group work plan Dr. Yoon was requested to route his proposal through US DoEand MoC.
Meanwhile Shri R. B. Mathur President Business Development & Mining StrategyVirginia Mining Resources Pvt. Ltd. (VMR) submitted vide his email dated 09.05.2016that VMR was a sister concern of Minerals Refining Company (MRC) which is associated withDr. Yoon in development of HHS Technology. He expressed to undertake a pilot project onHHS Technology under S&T Programme in India. He was requested to submit a proposalwith details of the HHS Technology its availability and cost etc. for initiatingappropriate action.
Subsequently a Proposal titled "Application of the Hydrophobic-HydrophilicSeparation (HHS) Process for the Beneficiation of Indian Coals" from M/s MRC wasreceived through US DoE and MoC Govt. of India. Comments of CMPDI on the proposal wassent to Advisor (Projects) MoC on 07.10.16 and also to Mr. Smouse Scott of DoE on27.10.2016. Further Shri R.B. Mathur submitted a revised proposal on 21.11.2016 withincorporation of the PROPOSED BUDGET BY TASK i.e. the total cost of involvement of USside is USD 1508312 as indicated earlier has been split into different tasks which isrelated to lab scale testing and consultancy services by the project proponent. CMPDIinformed Dr. Scott Smouse on 02.12.2016 that the indicated cost mentioned above wastowards Laboratory tests on coal samples (to be transported by CMPDI to Virginia TechLaboratory in USA) detailed characterization for pilot design design of a POC-scaleplant conceptual design of a Demonstration Plant and developing a flowsheet to Retrofitin existing plant only. It does not include any supply item not even the cost towards HHSset up required for POC-scale plant without which the objective of the HHS scheme cannotbe accomplished. Accordingly Dr. Scott Smouse vide email dated 23.03.2017 submitted arevised proposal as received from Virginia Minerals Refining Corp.
On 18.04.2017 CMPDI responded to Dr. Scott Smouse that Laboratory Tests and DetailedCharacterization might be done in India through reputed NABL accredited or Council ofScientific and Industrial Research (CSIR) laboratories to reduce foreign exchangecomponent and each element of POC Scale Design needed suitable justification with detailedelaboration as the cost appeared to be on higher side. The "Estimate for Building aPOC Plant" in the United States also needs to be discussed with US proponent. Duringdiscussion with the expert team of CMPDI on 02.05.17 Prof. Roe Hoan Yoon of Virginia TechUniversity USA stressed that initially Indian coal samples were to be tested on HHSinstallation in USA to assess the suitability of HHS technology and for this purpose 5drum fine coal samples are required to be transported to USA. It was clarified thattransporting the coal samples to USA and getting tests done at VTU would incur cost whichwill be difficult to arrange before approval of the project by CIL.
Based on further discussions Mr. Scott Smouse of US DoE & Prof. Yoon of VTU wererequested (vide email dated 21.08.2017) to submit the revised project proposalincorporating the observation /comments of CMPDI and as per the "Guidelines forimplementing coal research projects" issued by MoC. In response Mr. Scout Smousevide mail dated 13.09.2017 proposed to restrict the Stage-I of the project up tolaboratory test work to reduce the project cost. CMPDI vide email dated 25.09.2017indicated that limiting the scope of work to laboratory tests of coal samples would notmeet the objective to introduce a state-of-the-art technology in India under Indo-USbilateral cooperation.
Moreover it was learnt that M/s Hendricks of USA has developed a 'unique patentedtechnology that refines coal and coal waste into pure hydrocarbon removing substantiallyall the mineral matter and water in a novel and exclusive low cost process' and acommercial plant is expected to be commissioned in USA by May 2018. Necessaryclarification in this regard has been sought from Virginia Tech University (VTU) USA byCMPDI to indicate the difference between the above concept and the methodology proposed byVTU as the above concept appears to be similar with the method proposed by VTU. Dr. Yoonvide email dated 27.09.2017 suggested to contact M/s Hendricks directly to know thetechnology they are using.
Meanwhile technical discussion was held at CMPDI Ranchi on 09.11.17 with President(Business Development & Mining Strategy) Virginia Mining Resources Private Ltd.wherein CMPDI communicated its requirement of a revised proposal as per S&Tguidelines. Mr. Scott Smouse of US DoE & Prof. Yoon of VTU were requested to submitrevised proposal after incorporating the decisions of the discussion held on 09.11.2017.Reply from Prof. Yoon of VTU is awaited.
New Areas of Collaboration
a) Underground Coal Gasification (UCG): UCG is one of the key areas underIndo-US collaboration. A project brief for capacity building in the field of UCGdevelopment was sent to MoC for consideration in India-US Coal Working Group Meeting heldon 16th Sept. 2015 at Washington USA for the development of UCG in CIL command area.Initially DoE indicated to approach UC-CIEE (California Institute for Energy and Env.)and thereafter Lawrence Livermore National Laboratory requested to be associated. US DoEagreed to identify US Experts and inform the Indian side for further course of directaction. Response from DoE is awaited.
b) Coal Mine Methane (CMM): CMM blocks have been identified in RaniganjCoalfield (ECL command Area) and Jharia Coalfield (BCCL command Area) of CIL forcommercial exploitation of methane. US Experts may be requested to suggest suitabletechnology providers for commercial extraction of CMM & its utilization.
c) Mine Rehabilitation & Reclamation of Indian coal mines: Projects on'Sustainable mine closure activities and mining wasteland to be utilized as a source oflivelihood for local community' were proposed to be carried out with the help of USagencies. In this regard a proposal was received from M/s Norwest Corporation on 15thDec. 2015.
After many deliberations on the proposal CMPDI advised to route the proposal throughIndo-US CWG platform prior to its submission to R&D Nodal Agency (i.e. CMPDI) forfunding under CIL. Subsequently a meeting was held at CMPDI with officials from M/sNorwest Corporation on 20th July 2016 and a decision was taken to formulate the proposalin two phases i.e. 'Study & Capacity Building (Phase-I)' and 'Implementation in one ofthe selected OC mines in CCL (Phase-II)' (CCL has given consent for study andimplementation of the proposal in Amrapali OCP). M/s Norwest Corporation sent the reviseddraft proposal to CMPDI (Implementing Agency) on 06.09.2016 for scrutiny. In the meantimeCMPDI incorporated the duly filled Annexures of the proposal and forwarded the same to M/sNorwest Corporation vide email dated 28.11.2016 for incorporating their input in theAnnexures before submission of the proposal.
Mr. Pat Akers representative of M/s Norwest Corporation after detailed discussionswith CMPDI officials submitted revised draft proposal on 10th January 2017. The revisedproposal after incorporating comments of CMPDI was received through email dated04.07.2017. CCL has been requested for association in the project as a sub-implementingagency. After getting the consent from CCL the same along with other observations will besent to M/s Norwest Corporation USA for resubmitting the proposal to MoC through Indo-USCWG platform for funding under CIL. The consent from CCL is awaited.
Indo-Australian Collaboration Status of On-going Projects:
CMPDI has a Memorandum of Understanding (MoU) with Commonwealth Scientific andIndustrial Research Organisation (CSIRO) signed on 12th June 2013 for a period of fiveyears for furthering scientific cooperation. A team from CMPDI visited CSIRO Australia inJuly 2015 for identifying possible collaborative areas in the field of clean coaltechnologies. During the visit of Secretary (Coal) in June 2017 it was suggested toidentify more areas for scientific cooperation.
a) Capacity Building for CMPDI Lab
CMPDI has established a state of the art Coal Bed Methane (CBM) lab that cancarry out parametric studies for resource estimation and reservoir characterization forCBM and Shale gas.
In March 2016 S&T Project titled "Capacity building for extraction ofCMM Resource within CIL Command areas" was approved by Ministry of Coal (MoC) underGovt. of India S&T funding which is jointly implemented by CMPDI and CSIRO. Theproject is of three (03) years project duration. A Collaborative Understanding agreementfor execution of the Project has been signed between CSIRO and CMPDI on 22nd December2016.
CSIRO Project Team visited CMPDI Moonidih Mine of BCCL and Chinakuri Mine ofECL during 9th -19th May 2017. During visit the team interacted with the projectpersonnel on gassiness issues. CSIRO team assisted CMPDI to draw the required technicalspecification of laboratory equipment to be procured by CMPDI for this S&T project.These equipment are being procured under the S&T funding. Project personnel weretraining by CSIRO during 11th - 16th March 2018 at CMPDI.
b) Ventilation Air Methane (VAM)
CMPDI has formulated a project jointly with CSIRO titled "Abatement andutilization of Ventilation Air Methane (VAM) from working underground degree-III coal minein India". The implementing agencies for the project will be CSIRO and CMPDI withBCCL as a sub-implementing agency. Identified project mine is Moonidih Underground Mine inJharia coalfield of Bharat Coking Coal Ltd. (BCCL).
CIL R&D Board has approved the project in principle with 100% retroactivefunding at present and in due course 40% should be reimbursed from National Clean EnergyFund (NCEF) with directive to reduce duration of project from 42 to 30 months inconsultation with CSIRO. CSIRO has agreed to reduce the project duration to 36 months.
The revised proposal was placed in the 26th Meeting of R&D Board of CIL heldon 27th Dec 2016 and the Board advised to place the proposal before the Apex Committeewith certain modification.
As per direction of the 26th Meeting of R&D Board of CIL held on 27th Dec2016 draft collaborative agreement was submitted by CSIRO which was sent to BCCL on 19thMay 2017 for their comments. The comments received from BCCL was forwarded to CSIROAustralia vide email dated 22.09.2017 which responded to all the queries made by BCCL.
BCCL vide letter dated 01.12.2017 informed that there was no methane gascollection in any well at CBM site Moonidih.
Locating the VAM test unit at CBM site will require long pipe line to take the VAM totest site. As such mine site would have been advantageous over the CBM site. Howeverexact location of the VAM test unit is to be identified by CSIRO.
In reply vide email dated 04.12.2017 CSIRO stated that 0.2% methane in mineair exhaust may not be sufficient for the study.
CSIRO also proposed to use CNG to increase the VAM concentration for site trial of VAMtest unit. Amount of required CNG will be determined based on the VAM concentration andtechnology selected. The same has been communicated to BCCL. Further action on the projectproposal will be taken after receipt of the comments from BCCL
c) Other collaborative initiatives
Taking forward the joint statement made by the Honorable Prime Ministers ofIndia and Australia on 18.11.2014 agreeing to cooperate on Energy and Clean CoalTechnologies and exploring opportunities for partnership between Australian institutionsand Indian School of Mines Dhanbad MoUs were signed between IIT (ISM) Dhanbad India andsix universities and two research organizations of Australia viz. Curtin University ofTechnology University of New South Wales University of New Castle University ofWollongong University of Western Sydney University of Queensland SIMTARS and CSIRO;for research and academic collaborations in the areas of Energy Clean Coal Technologiesand Mines Safety.
Australia - India Center for Clean Coal and Energy Technologies (AICCET) hasbeen established at IIT (ISM) Dhanbad and Curtin University Perth for conducting jointresearch in the areas of Energy and Clean Coal Technologies. In the realm of this centertwo major research activities have been initiated by IIT (ISM) Dhanbad and Coal IndiaLimited (CIL) with Australian collaborations which are (i) conversion of high ash lowrank Indian coal to chemicals and (ii) design of improved flow sheets for high ash coalwashing to reduce the percentage of ash in feed coal of different industries.
The Centre of Excellence in Mining Technology (CEMT) has also been establishedat IIT (ISM) Dhanbad in collaboration with Australian institutions and researchorganizations for conducting research in the areas of Advanced Mining Technology and MinesSafety. Under this Research Centre a Virtual Reality Mine Simulator (VRMS) is beingestablished at IIT(ISM) Dhanbad by SIMTARS Department of Natural Resources Govt. ofQueensland Australia for simulating advanced mining technology and hazardous coal mineenvironment with support from CIL. VRMS will be used for imparting necessary training toexecutives and operational people for improving safety in Indian coal mines. Aftersuccessful establishment of this facility at IIT(ISM) the same will be replicated atthree different locations in CIL. In addition the research activities jointly beingundertaken by IIT (ISM) Dhanbad and CIL with Australian institutions have progressed inthe areas of segregate blasting reducing the potential of mine fire and explosion in coalmines for improvement of production productivity and safety. IIT (ISM) had approachedCoal India Limited (CIL) with an R&D proposal on VRMS in May 2017. After gettingapproval from R&D Board of CIL the project has been commenced w.e.f. 01.09.2017.
The cooperation between the two countries will attain new heights in futurethrough such collaborative initiatives between Australian Institutions and IIT (ISM)Dhanbad in the frontier areas of Energy Clean Coal Technologies Advanced MiningTechnology and Mines Safety.
To expedite the co-operation a Technology Mission headed by Secretary Ministryof Coal visited Australia from 17th to 24th June 2017. During the visit the team had adiscussion with Department of Industry Innovation and Science Govt. of Australiaregarding Research & Development/Innovation in the field of coal mining mine safetymanagement mine closure and reclamation and acquisition of coking coal assets inAustralia by Coal India Limited (CIL). During the Visit to CSIRO Brisbane certain areaswere identified for collaborative studies by CIL/CMPDI with CSIRO viz. 3D Seismic SurveyHydro-Geological Modelling and Longwall Top Coal Caving (LTCC). It was also decided thatincreased emphasis will be laid on the ongoing R&D project on CBM/ CMM by CMPDI/CIL toexplore the prospects of commercial utilization of methane through power generation.Capabilities of mine scheduling software XPAC and the Virtual Reality Training tools formine workers were also demonstrated during the visit at RUNGEE PINCOCK MINARCO (RPM)Brisbane. Further during visit to University of New South Wales Sydney it was decidedto collaborate in the area of setting up of a Virtual Reality based Training Centre inIndia Drone based subsidence monitoring in overlying areas of underground goaves etc.
New Areas of Collaboration
a) Underground Coal Gasification (UCG): In the India - Australia Energy SecurityDialogues held during 8th - 11th February 2016 at Brisbane for the development ofUnderground Coal Gasification (UCG) Australian companies like M/s Carbon Energy Limitedwas asked to look forward for the opportunities coming up in India in view of the recentUCG policy of Government of India. A meeting was organized by Austrade / Delhi on 31st May2016 where M/s Carbon Energy Ltd. shared their outcome of Key Seam UCG Technologydeveloped at the Bloodwood Creek UCG Trial Project at QLD in Australia. It was agreed thatin view of constitution of Inter-Ministerial Committee (IMC) for the development of UCGblocks the proponent might approach the developer for extending technology to them afterthe award of blocks.
b) CBM/CMM Development in CIL Command Area: In the India - Australia EnergySecurity Dialogues held during 8th - 11th February 2016 at Brisbane the Australiantechnology providers and experts from the Australian Universities came forward forparticipation in developing CBM/CMM areas under the leasehold of CIL in view of new policyof Government of India permitting CIL to explore and exploit CBM/ CMM on commercial lines.University of New South Wales (UNSW) has been requested to provide list of experts andtechnology providers. The status of ongoing R&D project on CBM/CMM was reviewed duringvisit of Secretary (Coal) Govt. of India to CSIRO Australia in June 2017.
Indo-Poland Collaboration New Areas of Collaboration
Secretary Ministry of Coal (MoC) Govt. of India led a delegation to Poland during6th-9th June 2016 to understand the energy policy of Republic of Poland with particularreference to development of coal coal mining technologies reclamation of mined-outareas capture and uses of Coal Mine Methane (CMM) and technologies for development ofunderground (UG) mines etc.
A team of Polish Experts including manufacturers visited MoC CIL ECL BCCL and CMPDIduring 4th-7th July 2016 in sequel of the visit made by an Indian delegation led by theSecretary (Coal) MoC Govt. of India to Poland. In view of the above a Poland TechnologyGroup (PTG) has been constituted and some of the areas were identified such as Slopestability of overburden dump (using advanced modelling technique) Dry Coal beneficiationExtraction of remnant coal pillars with surface protection Pre-drainage of coal minemethane (CMM) and commercial recovery of coal bed methane (CBM) and Control measures formine fires of Jharia for obtaining the solutions from Polish side. A detailed discussionwas held on the identified areas at CMPDI (HQ) Ranchi between Polish Experts andOfficials of PTG & other officials of MoC CIL/ CMPDI wherein technical co-operationwas sought on the identified areas from Polish Experts. A data dossier on the identifiedareas were prepared by CMPDI with necessary technical help from different subsidiaries ofCIL and the matter is being taken up at CIL level.
In continuation of the collaborative studies a team of 4 officers (2 from CMPDI and 1each from CCL & BCCL) visited Poland from 13th -17th February 2017 to enhance skillin the field of methane extraction and dry coal beneficiation.
The fifth session of the India-Poland Joint Commission on Economic Cooperation (JCEC)was held in New Delhi on 27.11.2017. Input in this regard had been sent to CIL/MoC on13.11.2017. Further information is awaited.
A Polish delegation involving representatives from M/s JSW M/s PeBeKa and CentralMining Institute Poland visited India during January 2018 and a meeting was held on16.01.2018 with the Indian representatives involving officials from CIL & SAIL.Capabilities of the above institutes/ organization of Poland were presented and viewsexchanged for further collaboration in different mining activities including participationin tender for CMM Drainage in Moonidih Mine of BCCL for which Global Bid is likely to bepublished. CIL also presented about the brief activities done during the last few fiscaland the short-listed areas identified under PTG for collaboration. The data dossier whichwas earlier sent to Polish group was again handed over to the Dy. Director General of theCentral Mining Institute Poland.
The 4th meeting of the Joint Working Group on coal between the Ministry of Energy andMineral Resources (MEMR) Indonesia and the Ministry of Coal India was held on 20.04.2017in Jakarta. Both side agreed that technology and science were crucial in mining industryin order to have sustainable scientific safe and environmental friendly mining. Bothside agreed for future cooperation in "Geological exploration between CMPDI andGeological agency of Indonesia" related to coking coal characterization capacitybuilding for CBM laboratory analysis geophysical exploration for coal and buildinggeological models based on geological data. It was also agreed to exchange best practicesin the areas of coal mining like mine planning and design satellite monitoring of minedout areas for reclamation IT enabled solutions for vehicle movement monitoring andenvironmental management of coal mines.
Capacity building between HRD agency of MEMR of Indonesia and Indian Institutes likeIIT-ISM Dhanbad IIT Kharagpur and IIT BHU was also agreed. It was also decided thatlab to lab cooperation between Central Institute of Mining and Fuel Research (CIMFR)Dhanbad of India and R&D agency of MEMR of Indonesia to conduct research on coalgasification mine water treatment technology and clinker formation as a result ofblending.
A 6-member Indonesian delegation visited CMPDI Ranchi CIMFR Dhanbad and MoC NewDelhi during 3rd- 5th May 2017. During their visit to CMPDI on 03.05.2017 capabilitiesof CMPDI were presented to the Indonesian team on the identified areas as discussed in the4th meeting of the Joint Working Group on coal between the two countries. Indonesiandelegates also visited CIMFR laboratories in Dhanbad on 04.05.2017 and different researchprogramme and other activities being carried out by CIMFR were briefed to the delegation.Another team visited Piparwar Opencast Mine of CCL on 04.05.2017.
Following points were agreed by the Indonesian team during the meeting held on 05.05.17at MoC:
Geological agency of Government of Indonesia and CMPDI will explore thepossibility of cooperation in preliminary exploration/ geological mapping of coking coaldeposits in Indonesia.
After establishing potential of coking coal deposits the Government ownedcompanies of the two countries namely Coal India Limited & PT. BUKIT ASAM / LocalGovernment Company will explore the possibility of forming an SPV for explorationdevelopment and operation of coking coal assets in Indonesia. The Government of Indonesiawill facilitate exploration license/ mining license to the SPV(s) as per the extant lawsof the country.
Govt. of India and Govt. of Indonesia will facilitate B2B cooperation betweenprivate coal companies of Indonesia and CMPDI in exploration and related laboratoryservices.
As a follow up action and after an invitation obtained in July 2017 from Indonesianside CMPDI team visited Indonesia during 28.08.17 to 01.09.17. During the visit Centerfor Mineral Coal and Geothermal Resources (CMCGR) Indonesia showed interest to havecapacity building in coking coal characterization and preliminary exploration/geologicalmapping in West Kalimantan area. CMPDI proposed the cooperation on forming a SpecialPurpose Vehicle (SPV) for exploration development and operation of coking coal assets inIndonesia with Indonesian Coal State owned company as well as cooperation in explorationand laboratory services with Indonesian Private Company as per the agreed points of themeeting held on 05.07.2017 in New Delhi. Upon the proposal the CMCGR side expressed theirneed to have further consultation and coordination with concerned authorities/parties.
Both parties agreed on the initial draft Scope of Project and will take furtherinternal consultation with the relevant parties in order to finalize the draft. One coalblock in West Kalimantan has been identified for prospecting which will be decided afterfield visit to the proposed project area in April 2018. CMCGR Indonesia have requestedfor funding of all the activities in scope of work by Govt. of India. A Ministerial levelmeeting of both the countries along with their technical and business representativesneeds to be carried out for finalizing the agreement of the above work to arrive at thecost involved in the entire project. Govt. of India and Govt. of Indonesia will facilitateB2B cooperation between private coal companies of Indonesia and CMPDI in exploration andrelated laboratory services. MoC has been requested to take view on it.
A team of officials of M/s Valmet of Finland along with Mr Mikko Postonen CounselorEmbassy of Finland met CIL Chairman Director (Tech) and other officials of CIL at Kolkatato promote their Technology for utilization of Coal Washery Rejects (CWR) for generationof thermal power. The delegation informed CIL that Valmet had a licence for designingPower Plant Boiler to burn washery rejects coal having ash% upto 77% with GCV of 1100Kcal/Kg. It was agreed that solution from Boiler to Generator (B2G) based on CWR as feedwas required.
Based on a request forwarded through MoC dated 5th Sept.'17 a Video conferencing wasorganized between CIL CMPDI and the delegation from Valmet and Finnish Embassy for adiscussion on the issue of prospects of CWR in CIL's subsidiaries. During the meeting itwas agreed to undertake a scoping study on the prospects of establishment of Coal WasheryReject based TPP utilizing Valmet's technology. It was also agreed to involve NTPC/PowerProducing companies and BHEL during the scoping study.
Representatives of Valmet along with Mr Postonen Counselor Embassy of Finland had ameeting with CIL Chairman Director (Tech) and other CIL officials on 5.10.2017 at NewDelhi to continue discussion on how to carry forward the scoping study. It was agreed totake up the desk-top scoping study at a site located centrally to a group of washeries inoperation at one of the subsidiaries of CIL. However it was agreed that prior to thisstudy since this technology is to be utilized in a Thermal Power Plant it would beprudent to include a Power Producing company namely NTPC and a manufacturer ofBoiler-Generator namely BHEL in the study.
The Finnish side informed that the Embassy of Finland shall co-ordinate with NTPC andBHEL to bring them onto the Board to have a synergy on the prospective study and CIL shallprovide the required inputs for study. It was agreed that the scoping study shall be aself-sponsored without any financial impact on either side on account of the group study.The above decision has been communicated to Valmet Chennai Pvt. Ltd at Chennai. A meetingwas held on 20.11.17 at Scope complex New Delhi among the officials from CIL VelmetEmbassy of Finland BHEL where various modalities of the project were discussed. Anothermeeting was held on 15.03.18 among Finnish officials Velmet and CIL officials at CMPDIRanchi on this matter. The minutes of this meeting are awaited.
A meeting was held on 05.10.2016 between State Minister Ministry of Power Energy andMineral resources Govt. of Bangladesh and Minister of State with independent charge forPower New and renewable energy and Mines Govt. of India. In the meeting Bangladeshrequested assistance of Government of India to develop the coal reserves in Bangladesh. Inresponse to this India agreed to send a technical team from CMPDI to study thetechno-economic feasibility of the mining of coal on the basis of availablegeological/geo-mining data.
Accordingly a technical team of CMPDI visited Bangladesh during 20th -24th Aug.'17 tostudy techno-economic feasibility of coal mining on the basis of Geological/Geo-miningdata. During the visit CMPDI team interacted with Senior Officials from Indian HighCommission of Bangladesh M/s Petrobangla M/s Barapukuria Coal Mining Company Ltd. (acompany of Petrobangla) and Geological Survey of Bangladesh. The Bangladesh side had showninterest in development of Barapukuria Khalashpir and Jamalgunj areas. The existinggeological data generated so far in these areas will be required for understanding theregional geology and generation of further data. The promising areas can be exploredfurther for feasibility studies. An initial request has been made to Barapukuria Coal MineCompany in this regard.
The 21st Meeting of India-Russia Joint Working Group on Energy and Energy Efficiencywas held on 7th September 2016 at New Delhi. Indian side expressed its interest intechnical cooperation with Russian companies in the field of Underground Coal Gasification(UCG) and resource assessment of Coalbed Methane (CBM) in destressed conditions. Russianside agreed to pass on the information to concerned Russian companies.
The 6th meeting of India-Russia Sub-group on Mining of the working group onModernization and industrial cooperation held on 15th September 2017 at Moscow Russiaand a protocol has been signed between two countries.
Both side showed mutual interest in developing the long term and mutually beneficialcooperation in the field of metallurgical mining and processing mechanical engineeringferrous and non-ferrous metallurgy mining coal industry and aluminium industry. Bothside also showed mutual interest in promoting investment in these sectors by encouragingboth public sector and private sector companies.
Indo-Japan Collaboration New Areas of Collaboration
a) Dry Coal Beneficiation: M/s Nagata Engg. Co. Ltd. has been requested toprovide the detail technology including specification and performance data commercialavailability of the separator and cost thereof with other supports (if any). The responseis awaited.
b) Slope Stability Monitoring: Dr. Hideki Shimanda of Kyushu University Japanhas been requested to share their technical expertise and valued opinion for Indiangeo-mining conditions. Reply is awaited.
c) Subsidence Measurement & monitoring using DINSAR Technology: J-Coaldelegation led by Mr Masafumi Uehara Asst. Sect. General Resource DevelopmentDepartment J-Coal Japan visited CMPDI in August 2016 and presented the possible use ofDinSAR technology for subsidence monitoring in Jharia Coalfield. The delegation alsovisited the subsidence sites at BCCL. On query whether a real time monitoring andsubsidence prediction was possible through this technology Mr. Uehara informed that realtime monitoring at present was not possible through this study as the minimum intervalfor this study can be one and half months which is the re-visit time of the satellite toacquire the data and moreover they do not have expertise in subsidence predictionpresently. Under such circumstances the project is kept in abeyance. Inputs on the abovepossible areas of collaboration with Japan has been communicated to CIL/ MoC on29.11.2017. Further information is yet to be communicated.
As per the Article No. 7 of the MoU signed between Ministry of Mines Govt. of IslamicRepublic of Afghanistan and Ministry of Coal Govt. of India a joint Working Group fromIndian side has been constituted by Ministry of Coal on 21.02.2013. Further information isyet to be communicated.
Two proposals regarding trial run of 350 Tonne dump trucks of Belaz make and technologyfor North Eastern Coalfields by M/s NIVA of Belarus were received from Ministry of Coalthrough CIL on 14.03.2017. Necessary comments of CMPDI on the above proposals have beensent on 20.03.2017 for onward communication.
The 8th protocol of India-Belarus Inter Governmental Commission (IGC) on TradeEconomic Scientific Technological and Cultural Cooperation has been signed on 04.07.2017in New Delhi. Both side reviewed the progress of bilateral cooperation and exploredfurther potential of cooperation between the two countries in order to strengthen andwiden bilateral relations. Updated status on the points pertaining to CMPDI have been sentto MoC on 20.07.2017. The further status is yet to be communicated.
Further Mr. Vladimir I. Semashko Deputy Prime Minister of the Republic of Belarusalong with business delegation attended the 'India-Belarus business forum' on 11.09.2017in New Delhi and presented the capabilities of Belarus companies. A high-powereddelegation from Belarus was scheduled on 12.09.2017 in India to discuss issues onbi-lateral cooperation the details of which is yet to be communicated to CMPDI.
13. COAL VIDESH DIVISION
I. INITIATIVES FOR ACQUISITION OF COAL ASSETS ABROAD
(A) Activities of Coal India Africana Limitada (CIAL) Mozambique
Post surrendering of prospecting licenses of CIAL to Government of Mozambique CILBoard directed CIAL to implement economization of its operations at Mozambique byshifting its registered office from Tete to Maputo. In pursuance of the directive of CILBoard the economization measure has been implemented by shifting the registered officefrom Tete to Maputo.
(B) Acquisition of coking coal assets abroad
Pursuant to the directives of the Board CIL has focused to the coking coal producingcountries viz. Australia Canada USA etc. for acquisition of coking coal assets abroad.As a part of the preparedness towards acquisition initiatives empanelment of MerchantBanker (MB)/Investment Banker (IB) has been done to render assistance in acquisitionprocess.
II. REVIVAL OF FERTILIZER PROJECTS
(A) Setting up of natural gas based ammonia-urea complex at Gorakhpur Sindri andBarauni
Hindustan Urvarak & Rasayan Limited (HURL) was incorporated as a Joint VentureCompany comprising of CILNTPC IOCL FCIL and HFCL as partners to set up natural-gasbased ammonia-urea complex at the premises of closed fertilizer plants of FCIL atGorakhpur (U.P.) & Sindri (Jharkhand) and that of HFCL at Barauni (Bihar). In 2016-17pre-feasibility studies were conducted to set up 1.27 MTPA capacity urea plant at allthree locations. After pre-qualification of contractors for setting up of the plants NITwas issued through Lump-Sum Turn Key (LSTK) mode. Based on the evaluation of offers thetechnical consultant M/s PDIL has prepared Detailed Feasibility Reports (DFRs) and thefinancial consultant M/s SBI Caps has prepared the Financial Appraisal Reports (FARs) forall three fertilizer plants. In case of Gorakhpur fertilizer plant DFR has been approvedby the Boards of HURL as well as the promoting companies. After achieving successfulfinancial closure the investment decision has also been approved by CIL Board. The LoAhas been issued to the consortium of M/s Toyo Engineering Japan and M/s Toyo EngineeringIndia. In case of Sindri and Barauni fertilizer plants also the DFRs have been approvedby CIL Board. LoA has been issued to consortium of M/s Technip France and L& THydrocarbons Engineering Limited India.
All the pre-project activities have been completed at all three sites. MoEF has grantedEnvironmental Clearance for setting up of Ammonia-Urea plants at all three locations.Term-sheet has also been signed with M/s GAIL for supply of Natural Gas for the threeproposed plants through their upcoming Jagdishpur-Haldia-Bokaro-Dharma Natural Gaspipeline (JHBDPL). All three plants are scheduled to come in operation by 2020-21.
(B) Setting up of coal based ammonia-urea complex at Talcher
Talcher Fertilizers Limited (TFL) was incorporated as a Joint Venture companycomprising RCF CIL GAIL and FCIL as the partners for setting up of a coal basedammonia-urea complex at the premises of the defunct fertilizer plant of FCIL at Talcher.Low CV high ash coal from nearby Talcher coalfields blended with pet-coke upto 25% shallbe gasified to produce syngas which shall be converted into Ammonia and subsequentlyUrea. TFL Board has approved coal gasification technology of M/s Shell for the proposedplant. Based on techno-economic feasibility study to set up 1.27 MTPA capacity urea planton partial LSTK mode separate LSTK tenders have been floated for Coal Gasification Plantand Ammonia-Urea plant. Concurrently LSTK NIT for Captive Power Plant and tenderdocuments for other Off-sites and Utilities are under preparation by the Consultant. MoEFhas granted Environmental Clearance for setting up of integrated coal based Ammonia-Ureaplants at Talcher. Ministry of Coal has accorded its in-principle approval for allotmentof the northern part of North of Arkhapal coal block to TFL. An MoU has also been signedbetween TFL and IOCL for supply of pet-coke to the proposed plant from Paradeep Refinery.
III. DIVERSIFICATION INTO CHEMICALS SECTOR
Setting up of Coal to Methanol plant at Dankuni Coal Complex (DCC)
Govt. of India has stressed the need to reduce the crude import bill and take up themeasures to cut carbon emissions. NITI Aayog has prepared an action plan to substitute 10%of crude imports by 2030 by Methanol (CH3OH) alone. India is shortly going to implementupto 15% Methanol blending program (M15) with Petrol. Ministry of Road Transport &Highways and Shipping & Waterways has already prepared the draft notification on M15and M100 as transport fuel and is expecting a clearance from Law Ministry to be notifiedofficially. After announcement of this methanol blending policy the domestic Methanolbusiness which stood at around 2 MT in 2016-17 is projected to reach to 30 MT in 2030.
To seize this opportunity CIL is exploring the possibilities for diversification intoChemicals sector by setting up a new coal gasification based methanol complex in premisesof Dankuni Coal Complex (DCC). This would also bring a paradigm shift in positioning ofits product particularly High CV low ash coal from an Energy product to a chemicalfeedstock. Coal sourced from Ranigunj coalfields shall be gasified to produce syngas whichshall be subsequently converted into methanol.
As part of this exercise potential coal gasification technologies have beenshortlisted through a global EOI. The consultant M/s PDIL was entrusted to prepare PFR.M/s PDIL has recommended to set up a coal to methanol complex of 2050 MTPD (0.676 MTPA)capacity in the available land at DCC. Currently the project is under Pre-FeasibilityStudy stage.
14. MASTER PLAN FOR DEALING WITH FIRESUBSIDENCE AND REHABILIATION
The Master Plan for dealing with fire subsidence and rehabilitation in the lease holdof Bharat Coking Coal Limited (BCCL) and Eastern Coalfields Limited (ECL) was approved on12th August 2009 by Govt. of India with an estimated investment of Rs. 7 112.11 croresfor Jharia Coalfields and Rs. 2661.73 for Raniganj Coalfields. Implementation period hasbeen delineated as 10+2 years.
High Powered Central Committee meetings were conducted under the chairmanship of theSecretary (Coal) MoC to review the activities of implementation of Master Plan. Fifteenmeetings were conducted so far; last meeting was held on 10/11/2017.
Jharia Rehabilitation and Development Authority (JRDA) is the implementing agency forrehabilitation of non-BCCL people under Master Plan whereas Asansol Durgapur DevelopmentAuthority (ADDA) a state Govt. organization has been identified as implementing agency forRehabilitation of Non-ECL houses.
A. Summarized Status of Implementations of Master Plan in the lease hold of EasternCoalfields Ltd.
Seven Surface Fires were identified in the approved Master Plan have been doused byblanketing with thick layers of earth to save the life and properties of the inhabitants.
Demographic Survey work has been completed for all 126 locations out of 141 identifiedlocations as 10 locations having no habitation and 3 locations have only ECL population.In 2 locations survey work could not be completed due to public agitation. The final listhas already been published which contains 44598 households. Photo Identity Card (PIC) hasbeen distributed to 43087 persons out of total 44598 persons. Most of the ECL employeesresiding in 3 endangered locations have been shifted and remaining persons were allottedquarters and are in the process of shifting. In the 15th HPCC meeting CEO ADDA informedthat final data of Demographic survey report is yet to be published.
According to the approved Master plan about 896.29 ha. (2214 Acres) land would berequired for resettlement of non-ECL families. In the meeting held on 24.03.2017 atNabanna under the Chairmanship of Chief Secretary Govt. of WB where in it was decidedthat ADDA ECL & CMPDIL will jointly find out the possibilities of large chunk of landto be used for rehabilitation purpose. It was also discussed that 15% of population underrehabilitation scheme are to be accommodated in Durgapur for which Bengal AerotropolisLimited (BAPL) land would be made available. For the rest of 85% who are to berehabilitated in Jamuria Ranigunj Asansol and Baraboni blocks land in big chunks has tobe identified. Construction of 160 houses has already been started from 10.03.2017. Workorders for construction of 3024 flats at Mouza Bijoynagar & 1904 flats at MouzaNamokeshia have been awarded on 19.03.2018. Finalization of Tender for Construction of5664 flats at BAPL land and 2224 flats at Daskeary mouza are under in process.
i) Diversion of National Highway (NH-2):
As per decision of 14th HPCC meeting on 20.3.2017 at DGMS Office Sitarampur under theChairmanship of Dy. DG(EZ) with the representatives of ECL CMPDIL NHAI and ADDA where itwas noted to get idea of blind backfilling and certification of action required for properstability from CIMFR Dhanbad.
In the 15th HPCC meeting on 10.11.2017 it was directed that in regard to 300m. stretchof NH-2 under unstable area a committee was constituted under DG DGMS with DDG Centralzone DDG Eastern zone to examine all available reports and reassess the danger associatedand need for shifting/strengthening the road. Accordingly a meeting was conveyed at DGMSoffice Sitarampur on 21.03.2018 under the Chairmanship of DG DGMS. DG rejected theproposed alignment of diversion due to suspected workings in the vicinity of the diversionroad. It was also expressed the doubt about restoration of full proof as well as long termstabilization through back filling technique due to non-availability of any authentic mineplan of the worked out seam on the basis of which actual void area can be ascertained.Finally after site inspection DG opined that geotechnical study of the affected stretchshould be conducted afresh by other technical/research Institute of national repute tofind out the best possible solution for stabilization of the unstable part of the road forlong term duration.
(ii) Diversion of District Board (DB) Roads.
The diversion of DB Road at Mohanpur Colliery of Salanpur area is not required as theproposed route is coming under mining operations. The existing road between Amdiha andSamdih via Lalgunj will serve the purpose of connection.
In the proposed diversion route of Gorangdih Begunia colliery 3.512 acres of land isrequired out of which 3.040 acres is Raiyati land and 0.472 acres being WB Govt. vestedland. For diversion of this DB road at Jamgram mouza under Barabani PS public notice hasbeen issued. The District Level Purchase Committee has taken up the issue regardingpurchase of Raiyati land.
For diversion of DB road at Ratibati colliery 4.847 acres land is required (1.207acres of ECL land (+) 0.370 acres of Raiyati (+) 3.270 acres of DGCA land).
MoC has accorded its approval for transfer of ECL land to State Govt. for diversionwork of DB Road and same was communicated to ADDA on 16.11. 2017. As per DGCA's view ADDAto examine alternative alignment for 3.149 acres DGCA land. Joint physical verification ofthe alternative diversion route has been done and it was found that the land comprised inthe proposed alternative alignment has been encroached by the local people and noalternative alignment is feasible.
Jt. GM(LM)-ER in his letter on dated 29.01.2018 suggested to re-submit the alignment ofproposed diversion of DB road covering minimum area as well as shortest length of proposeddiversion of road of AAI land at the said site.
Accordingly a joint inspection comprising officials of ECL and ADDA was made on28.02.2018 and an alternate alignment covering an area of 0.68 acres of AAI land at thesaid site was found. Proposal to transfer 0.68 acres land owned by DGCA in favour of UrbanDevelopment Dept Govt. of WB has been sent to Regional Executive director AAI on15.03.2018 to consider and expedite the issuance of NOC for construction of diversionroute of the concern DB road.
iii) Diversion of Railway line: Andal-Sitarampur Railway line:
Preliminary discussion with Eastern Railway officers was held on 20.12.2017 where itwas suggested by DRM Asansol to send details of the scope of study in such stabilityassessment along with the plan showing the proposed route study to examine the proposalfrom their end. In regard to diversion of Andal-Sitarampur Railway line and onconsideration of revised FSR by Railways CMD ECL was asked to convene a meeting with allconcerned to assess the danger associated with it and action to be taken in this matter.In a meeting held on 02.02.2018 at ECL HQ under the Chairmanship of CMD ECL where allFunctional Directors of ECL and Eastern Railway officials including DRM Asansol were alsopresent and it has been decided to conduct geotechnical investigation/survey of theunstable stretches beneath the Andal -Sitarampur rail track to find out the total voidarea below the railway track. Stability analysis of the workings and prediction of anysurface subsidence based on geotechnical investigation and analytical method would also bedone in this scientific study. Accordingly three premiere technical/scientific researchInstitutions i.e. IIT Kharagpur ISM Dhanbad & CIMFR Dhanbad were contacted tosubmit their offer for carrying out the said scientific study.
Chief Scientist of CIMFR had already visited at ECL HQ on 06.03.2018 to discuss on thesubject matter. On 29.03.2018 ECL again requested the above three premiere Institutes tosubmit their offer within a week time for taking further course of action on the abovereferred matter.
Diversion of Andal-Sainthia Railway Line:
Regular Monitoring is being done by ECL & Railway Authorities to check anysubsidence and the speed of the trains in these locations have also been restricted.
iv) Diversion of Indian Oil Corporation Limited (IOCL) pipeline:
IOCL informed that regular monitoring is being done by them to detect any deflection ofpipe line due to subsidence.
B. Summarized Status of Implementation of Master Plan in the lease hold of BharatCoking Coal Ltd.
Reduction in Fire area: The coal mine fire survey/ study was instituted by BCCL throughNational Remote Sensing Centre (NRSC) ISRO Department of Space Hyderabad fordelineation of surface coal fires in Jharia Coalfield. NRSC has submitted their report inwhich they have concluded that the present fire area in the coalfield is only 2.18 sq.km.which includes both over burden dump fire and active fire. In Master Plan total surfacearea affected by fire described as 8.9 sq.km. NRSC has reduced these findings from theState of Art Satellite based technology. NRSC has been requested to repeat the satelliteTIR survey. NRSC has completed the survey in December 2017. Final Report of NRSC isawaited. BCCL would improvise the fire action plan for speedier liquidation of fire area.
As per Master Plan total 54159 families in 595 nos. sites are to be surveyed. CIMFRISM whiz Mantra and JRDA have completed survey of 595 sites for 91879 families ofencroachers survey of private houses are to be started.
3360 houses have been constructed in Belgoria Rehabilitation Township"JhariaVihar" in which 2048 non - BCCL families(encroachers) are shifted fromaffected areas. Construction of 6992 units are in progress out of which 992 units are incompletion stage.
Regarding the rehabilitation of BCCL people residing in the fire & subsidenceaffected area 6668 houses constructed out of 15852 houses and 3311 BCCL families shiftedtill January 2018. The remaining 3357 house Construction is expected to be completed byDecember 2018 and shifting by December 2019.
As per Master Plan 2730 Acres of land would be required for resettlement of non-BCCLfamilies for which JRDA is perusing for acquisition of land and proposals are now atdifferent stages. NOC of 86.44 acres of vacant land in Bhuli Township and 849.68 acres ofnon-coal bearing land in and around Belgoria Township belonging to BCCL have been given byMoC which has been communicated to JRDA along with all the required Mouza plans fordeveloping new Townships by JRDA.
Road diversion from fire affected areas:
Repairing/ widening of Mahuda-Topchanchi road in lieu of endangered portion of NH-32between Godhur to Putki as a short-term measure is completed. BCCL has requested NHauthority for handing over the site for dealing the fire from said stretch of road in thespirit of Jharia Action Plan.
Rail Diversion from fire affected places
As per recommendation of HPCC a Committee was formed under the Chairmanship of DGMSand its first meeting was held on 24.03.2017. As per record note of Committee "thecommittee feels that movement of passenger or goods train on the Dhanbad -ChandrapuraRailway line of E.C Railway is to be stopped immediately in the interest of safety tohuman.
In the record note chaired by Principal Secretary to PM on dated 22.5.2017"Director General of Mines Safety (DGMS) should visit the site of railway track andgive certificate regarding safe/unsafe condition of track by 5th June 2017" regardingstopping Dhanbad- Chandrapura line. As per letter by Excutive Director/Civil Engg (P) Ref;2008/CE-II/WP/31 dated 10.06.2017 to General Manager E C RailwayHajipur "Havingconsidered DGMS report Board has decided to stop operation of Passenger and good Trafficon Dhanbad Chandrapura line with affect from 15.06.2017.
BCCL has made several communications to Railway regarding handing over the Railwayacquired land of stretch of Dhanbad Chandrapura line for fire mitigation. Recently aletter has been written by the additional member (WORKS) Rail Ministry Railway Board tothe Government of Jharkhand for bearing the cost of alternative alignment of closedDhanbad Chandrapura line.
Coal India Ltd has infused Rs.432.01 crores to ECL and Rs.1112.31crs to BCCL till March2018 for implementation of Master Plan.
15. ENVIRONMENTAL MANAGEMENT
15.1 Environmental Impact Assessment (EIA)/Environmental Management Plan (EMP)
EIA/EMPs for all the new and expansion projects as per EIA Notification SO 1533 dated14th September 2006 of MoEF are prepared for peak and normative capacities andenvironmental clearance is obtained. During the year 2017-18 CMPDI has prepared a totalof 20 Form-I and formulated 23 Draft EIA/EMPs. 18 environmental clearances and 6modification in EC were also obtained from MoEF for different Projects/ Group of MinesWasheries and Sand mining projects of CIL during the year 2017-18.
15.2 Management System Standards
CIL HQ has got certification against ISO 9001 ISO 14001 and ISO 50001 (QualityManagement System Environment Management System and Energy Management System) from Bureauof Indian Standards. As on 31st March 2018 three of our subsidiaries ECL NCLand MCL are certified for their companywide Integrated Management System (ISO 9001ISO14001 and OHSAS 18001) and CCL is likely to be certified shortly. BCCL SECL and WCLare in the process for implementation of companywide Integrated Management System (ISO9001 ISO 14001 and OHSAS 18001). CMPDI HQ and its seven RIs are certified for ISO9001:2015. CMPDI is in the process of implementing ISO 14001 & ISO 50001."
15.3 Pollution Control Measures and their Efficacy
Coal India has been giving utmost importance to protect environment by practicing andfollowing sustainable mining practices so as to ensure that the mining operations hasleast impact on environment. Various pollution control measures and initiatives are takenup concurrently with mining operations for maintaining acceptable/permissible limits ofmajor physical and chemical attributes of environment namely air water hydrogeologyground vibrations noise land & nearby community.
(A) Air Pollution and its Control Measures:
To control and reduce dust generation during drilling blasting loading and Coaltransportation Coal India Ltd. has taken up various initiatives based on theEnvironmental Management Plans (EMP) which were already prepared before commencement/enhancement of production of coal mines. This EMP is prepared keeping in mind the impacton existing environment and forest due to coal mining projects through Environment ImpactAssessment (EIA) study of each project.
Crushers coal transfer points and coal stock areas are being installed. Mist spraysystems have been introduced along conveyor routes transfer points and on bunkers. Mobilewater sprinkling has been provided in all the haul roads of OC mines. In addition tothese the projects are enhancing the water sprinkling through engagement of contractualwater tankers. Automatic sprinklers have also been installed in CHPs. Some of theimportant initiatives are also mentioned below:
a) Mobile sprinklers have been installed along haul roads to control dust generated bytruck and dumpers movements.
b) Optimum level of loading of coal in trucks and railway wagons to avoid spillage onroads and rail.
c) To avoid spillage of coal during transport trucks are properly covered by tarpaulincovers.
d) Blacktopping repairing and strengthening of haul roads are regularly andscientifically carried out.
e) Plantation in surroundings of active mining areas and along the hauls roads arecarried out to create green buffers/green belts in and around the mines.
f) In order to reduce the dust pollution due to road transportation eco-friendly modeof transport is being introduced. Transportation to thermal power stations who consumemore than 80% of thermal coal are carried out by rail / series of belt conveyors. Railheads are constructed and made available nearer to mine so as to reduce roadtransportation. CIL have constructed / are constructing integrated CHP for rapid loadingof wagons and trucks.
g) Tube conveyors mode of transportation is also being introduced in some mines fortransportation of coal to thermal power plants. The wall/sides of CHPs are also covered byside cladding with GI Sheet to control pollution at source.
h) To contain dust emission at source itself dust extractors / wet drilling systemsare being undertaken.
i) Controlled blasting and habitation away from the mines have been introduced as faras possible.
j) Modern technologies like Surface Miners and Continuous Miner at differentsubsidiaries of CIL which generates lesser air borne pollution as compared to conventionalmining have been introduced to the system. During 2017-18 CIL has produced around 48% oftotal coal production through surface miners and continuous miners.
k) The quality of Ambient air in and around the mine site is being monitoredfortnightly. The required and stipulated numbers of ambient air quality monitoringstations are maintained as per environmental rules and regulations of Environment(Protection) Act 2006 and its reports are regularly submitted to SPCBs and MoEF&CC.
l) The concept of 'Continuous Ambient Air Quality Monitoring Stations' (CAAQMS) arebeing introduced and are installed / being installed in large mines of CIL. ContinuousAmbient Air Quality Monitoring Stations have been installed at 4 locations in SECL and 01location each in WCL and MCL.
(B) Mine Water Management:
Water which pumped out from the underground and open cast mines are being contaminatedwith suspended particles. Some small quantity of water being contaminated during washingand cleaning of HEMM. CIL also takes initiative by treating this water. The treated wateris being supplied to the local villages after mine consumption Quality of the finaleffluent is monitored in terms of the relevant Indian standards.
Domestic Effluent Treatment Plant (DETP): The domestic effluent from majorresidential colonies is treated in DETP either by activated sludge method or by extendedaerated lagoons.
Mine Discharge Treatment Plants (MDTP) are installed in mines for treatment ofmine water. Strata seepage water in mines first gets accumulated in the mine sump whichprovides for initial settlement of suspended particles. The supernatant water from thesump is then pumped out on surface and treated in surface sedimentation tank whichprovides for second stage settlement. The treated mine water is then used partly withinthe mine premises for dust suppression fire fighting plantation washing and furthertreated as per drinking water standard for supply to company township and nearby villagesthrough pressure filter / RO. etc. After ensuring maximum re-use within and around minepremises the excess treated mine pumped out water is released onto local nalla / streamswhich is used by the surrounding local population specially for agricultural use.
In order to assess the impact of mining activities on ground water quarterlymonitoring of ground water levels is being carried out in and around the coal minescovering the buffer zone (i.e.10 Kms radius). Further recharging of ground water is alsotaken up within mine premises as well as in nearby villages through rainwater harvestingdigging of ponds/development of lagoons de-silting of existing ponds/ tanks etc.
Regular monitoring of mine effluent workshop effluent and domestic effluent iscarried out every fortnight as per Environment (Protection) Rule - 2006. Reports of thesame are regularly submitted to SPCBs and MOEF.
(C) Noise Pollution Control Measure:
For control of noise pollution following measures are adopted:
i) Proper maintenance of equipment to minimize vibration
ii) Green belt provided around the mine as well as residential area.
iii) Controlled Blasting & blasting in only day time.
iv) Use of Surface Miner Continuous Miner & High Wall mining which extract coalwithout blasting.
v) Ear Muff or Ear Plugs provided to Workers at highly noisy areas
(D) Land Reclamation:
Reclamation of the mined out areas and the external OB dumps is a major environmentalmitigatory activity taken up by Coal India. In all new mines reclamation of mined outareas are being done as per the Environmental Management Plan and Mine closer plan whichare approved by MoEF&CC. Back filling of the OB material in the mine voids is part ofthe mining operation cycle. Top soil preservation storing and use in the plantation areasof the reclaimed areas are being done in the opencast mines wherever necessary. Concurrentreclamation and rehabilitation of mined out areas (subject to technical feasibility as pergeo-mining conditions) are taken for gainful land use. Opencast mines are filled up withoverburden extracted during the process of extraction of coal and after technicalreclamation is completed plantation is carried out which is termed as biologicalreclamation.
Eco-restoration : For effective Bio- reclamation of disturbed landscientific studies are carried out to select suitable species of plants for each coalfieldand sustainable sequence of reclamation from grass to shrubs to trees. Forest ResearchInstitute (FRI) have been engaged by CIL for sharing their expertise in the field ofeco-restoration in the reclaimed areas. ECO restoration sites have been developed in BCCLwith technical guidance of FRI.
Eco-park in Reclaimed land : Eco Parks have been developed in many of themined out areas of CIL like Gunjan Park of ECL Ananya Vatika of SECL Nigahi of NCLSaoner of WCL Kayakalp Vatika Rajarappa Eco Park in CCL etc.
Tree plantation : Green belt is developed through extensive treeplantation programme every year by the subsidiaries of Coal India Ltd.
Avenue plantation plantation on the OB dumps plantation around mines residentialcolonies and available government land is undertaken in existing as well as new projects.Since inception subsidiary companies of CIL have planted 96 million plants covering anarea over 38378 Ha. till March 2018.
Monitoring of Reclamation : CIL introduced state-of-the-art SatelliteSurveillance to monitor land reclamation and restoration for all opencast projects. Theland reclamation and rehabilitation operations are being monitored by SatelliteSurveillance. 50 major OCPs excavating more than 5 Mm (Coal+OB) per annum are beingmonitored every year while remaining OCPs excavating less than 5 Mm (Coal+OB) per annumare being monitored every 3rd year. This gives a clear picture of reclamation whichotherwise is difficult to accurately estimate. The study during 2017-18 shows that all themajor OCPs (excavating > 5 Mm (Coal+OB) per annum) have reclaimed area of 61.96% andactive mining area is only 38.04% of the total excavated area. In addition CIL isconducting vegetation cover mapping through satellite surveillance in every 3 years.
Mine Closure Plan (MCP) : MCP is an integral part of the project reportprepared by CMPDIL for Coalmines. This progressive mine closure plan also forms a part ofthe EIA/EMP prepared and submitted to MOEF for Environmental Clearance. The progressivereclamation of mined out areas by inbuilt in the project cost and is implementedaccordingly. After exhaustion of reserves statutory obligations in respect of closure arealso followed. CIL is practicing mine closure very effectively. CIL is committed forrestoration of abandoned / mined out areas in a socially acceptable & environmentfriendly manner. As on March 2018 out of 453 identified mines MCPs have already beenprepared for all the mines 445 MCPs have been approved by concern Subsidiary Board andtotal amount of Rs. 6075.44 Crores has been deposited in 425 numbers of Escrow accounts.
Strive for continual improvement in environmental performance by settingtargets measuring progress and taking corrective action.
CIL has engaged Indian Council of Forestry Research & Education (ICFRE) Dehradunfor Environmental Audit of 20 OC Mines of CIL which is intended for third partyinspection verification of the existing levels of pollution vis-a-vis the laid downstandards and to delineate the compliance status of major projects in addition to theinspection carried out by the statutory authorities like CPCB/SPCB etc. ICFRE hassubmitted final draft reports of 19 mines. Furthermore CIL has engaged ICFRE fordeveloping approach and methodology for index rating of environmental conditions forindividual mine & preparation of Environmental Performance Index in respect of the ECconditions and third party mine auditing of 35 mines of CIL pertaining to EnvironmentalCompliance.
(E) Solar Energy/ Energy efficient Initiative by Coal India Ltd:
CIL has signed MoU with Energy Efficiency Services Limited (EESL) to promote energyefficiency provisions in CIL and its subsidiary companies. CIL has taken steps for usingLED lights substituting CFL lights. All the electrical fittings of CIL's HQ at RajarhatKolkata have been replaced by energy efficient LED fittings.
To promote Green Initiatives taken by GoI CIL has submitted Green Energy Commitmentletter to MNRE for developing 1000 MW Solar Power Projects. For implementation of theseprojects CIL has signed MoU with Solar Energy Corporation of India (SECI).
In the 1st phase tender was floated for setting up of 2x100 MW Solar PV Project in thestate of Madhya Pradesh. But due to downward trend in prices of solar projects andavailability of land in Madhya Pradesh Solar park the tenders were cancelled and SECI isin the process of retendering the same in the state solar park of Madhya Pradesh.
CIL's initiatives had resulted in installation of more than 3 MW capacity in CIL HQ andits Subsidiary Companies.
15.4 Assessment of Impact of Coal Mining in different coalfields
CMPDI has introduced satellite surveillance for land reclamation monitoring of all theopencast mines from the year 2008-09. Land reclamation monitoring of 50 opencast projectshaving more than 5 million cu.m. capacity (coal+OB) and 42 OC projects producing less than5 million cu.m. (coal+OB) have been completed based on high resolution satellite dataduring the year 2017-18. Monitoring of land reclamation status in larger capacity mines(>5 million cubic metre) are carried out regularly on annual basis and smaller mines(<5 million cubic metre) at three years interval.
During 2017-18 seven coalfields viz. Rajmahal Raniganj Ib-Valley Mand RaigarhSohagpur Umrer and Pench-Kanhan have been studied for assessing the regional impact ofcoal mining on land use/vegetation cover. Land use/cover mapping of core and buffer zoneof 20 projects have been completed during the year for generating baseline information forEnvironmental Management Plan. Monitoring of coal mine fire in Jharia Raniganj Karanpuraand Bokaro coalfield based on Thermal Remote Sensing data has also been done for theyear 2017-18.
16. COAL BED METHANE (CBM) / COAL MINE METHANE (CMM)
16.1 Collaborative commercial development of CBM in Jharia & Raniganj coalfields bythe consortium of CIL & ONGC.
The Govt. has allotted two CBM blocks in 2002 namely Raniganj North CBM Block inRaniganj Coalfield and Jharia CBM Block in Jharia Coalfield to the consortium of ONGC-CILon nomination basis for commercial development of CBM. ONGC is the Operator for both CBMblocks and carrying out the jobs as per contractual agreement with the Govt. of India andCMPDI provides technical support to CIL in this regard. On completion of CIL part of workprogramme by CMPDI and supplemented by appraisal activity by ONGC has resulted informulation of Field Development Plan (FDP) by the Operator i.e. ONGC.
Government of India had approved the FDPs for both the CBM blocks in July' 2013.Petroleum Mining Lease (PML) for Jharia CBM block has been granted by Govt. of Jharkhandin July' 2015 whereas Environmental Clearance has been granted in April 2017. FDPs areunder revision as per the directive of MoP&NG considering the overlapping issues.
Model Co-development Agreement for Simultaneous Coal Mining and Coal bed Methane (CBM)Operations in the Overlapping Areas was issued by MoP&NG in February 2017. Matter ofCo-development agreement in regard to Jharia CBM Block in Parbatpur Central Coal Block foroptimum exploitation of coal by SAIL and CBM by ONGC (operator of the CBM block) has beenfinalized and agreed by DGMS. SAIL has conveyed to ONGC to defer the execution ofCo-Development Agreement till Mining Lease (ML) is granted to SAIL. ONGC throughMoP&NG sought intervention for early execution of Co-Development Agreement. Inpursuance to the Steering Committee meeting held on 30th March 2017 at DGH Revised FDPand cost estimate taking in account all constraints have been prepared by ONGC andaccordingly techno-economics has been done by ONGC. FR is under examination at ONGC.
In February 2018 DGMS has communicated to ONGC that Directorate does not have anyobjections regarding resumptions of CBM activities in the overlapping area betweenParbatpur Coal block of SAIL and Jharia coal block of ONGC provided no underground workingshall made at the west side of Fault F5-F5 after starting the CBM drilling operations.Thereafter Hudro-Fracturing job has been undertaken in Well No. JH14 on 14th March 2018considering DGMS no objection.
16.2 CBM and Shale gas related studies under Promotional Exploration during 2017-2018:
16.2.1 CBM related studies:
CMPDI is carrying out studies related to "Assessment of Coalbed MethaneGas-in-Place Resource of Indian Coalfields/Lignite fields" through boreholes drilledduring exploration. CBM specific data has been generated from eight boreholes during theyear and achieved the target. This study will create the data base for assessment of CBMpotentiality and facilitate delineation of more blocks for CBM development.
A report based on CBM related studies on Patratu ABC Block South Karanpura CoalfieldJharkhand has been prepared.
16.2.2 Shale gas related studies:
CMPDI is carrying out studies related to "Assessment of Shale Gas-in-PlaceResource of Indian Coalfields/Lignite fields" through boreholes drilled duringexploration. This study will create the data base for assessment of shale gas potentialityand facilitate delineation of more blocks for Shale Gas development. During the year2017-18 studies in five boreholes have been completed.
16.2.3 Activities taken up by CBM Laboratory:
Relevant studies like Adsorption Isotherm (AI) studies for 78 numbers of coal samplesTotal Organic Carbon (ToC) analysis for 51 number of Shale samples have been completed inaddition to CBM studies in 8 boreholes and Shale gas studies in 5 boreholes. Furtheranalysis of 971 mine air samples received from different collieries of CCL have beencompleted and results submitted.
16.3 Commercial development of Coal Mine Methane (CMM)
Ministry of Coal vide Office Memorandum dated 29th July 2015 has permitted CIL toexplore and exploit CBM from its areas under coal mining lease allotted to Coal IndiaLimited (CIL). Earlier MoC had made CMPDI the Nodal Agency for development of CMM inIndia. MoP&NG vide notification dated 3rd November 2015 has issued guidelines forexploration and exploitation of CBM by Coal India Limited (CIL) and its subsidiaries fromareas under coal mining lease allotted to CIL.
MoC has requested MoP&NG to issue modified guidelines considering exemption ofapplicability of the ORD Act and PNG Rules within coal mining leasehold areas exemptionof penalty in delay in submission of FDP & Production and permission to engageexperienced technical developers or service contractor from India or abroad as third partyfor CBM exploitation etc. CCEA has given its approval on 11th April 2018 for issuing anotification amending clause 3(xiii).
Considering Govt. of India permission to CIL in July 2015 to explore and exploit CBMfrom its areas under coal mining lease allotted to CIL steps have been taken up byCMPDI/CIL for identification of potential areas initially in Damodar Valley coalfieldswithin CIL mining leasehold which appears to hold comparatively better potential for CBM.Accordingly one block each in Jharia coalfield (in BCCL command area) and in Raniganjcoalfield (ECL command area) have been identified as prospective CBM/CMM blocks:
1) Jharia CMM Block (BCCL Area): A block of about 24.32 sq km clubbing KapuriaMoonidih Jarma and Singra blocks has been delineated for commercial development in themining leasehold area of BCCL having CMM resource of 25.22 BCM. Project feasibility reporthas been prepared based on Reservoir Modelling & Techno-Economic studies and submittedto BCCL for further perusal.
2) Pre-drainage of coal mine methane at Moonidih mine (BCCL) Jharia Coalfield:Pre-drainage of methane at Moonidih mine (BCCL) in working Seam XVI has been proposed torecover methane to enhance production and safety and recovered gas may also be gainfullyutilized. In this regard a Pre-feasibility report on Pre-drainage of CMM from Moonidih UGmine in Jharia Coalfield has been prepared and submitted to BCCL for competent approval toincorporate Scope of Work for the Global Bid.
An Expression of Interest (EoI) was floated by CMPDI to identify suitable organizationto undertake pre-drainage of methane from Moonidih mine of BCCL in Jharia Coalfield. 15responses to the offers were received against this EoI. Bidder's meet was held on 10thMay 2017 at CMPDI Ranchi in which 11 respondents of EoI participated which includesService Provider/Developer from Australia USA and Poland. Based on their inputs a draftTender Specification Document (TSD) was prepared for selection of the suitable experienceddeveloper/service provider through global e-Tendering for carrying out the first pilotproject in India. Draft TSD was circulated to respondents and deliberated in the Pre-NITmeeting held on 7th Sept.'17 at CMPDI Ranchi.
Accordingly Global Bid Document has been prepared for "Pre-drainage of Coal MineMethane (CMM) from Moonidih UG Mine". The draft Global Bid Document has been sent toDGH for "Peer Review" also. DGH suggested that E&P of CBM in Moonidih minecan be done pursuant to extant Govt. of India notification dated 3rd Nov.'15 in thisregard and CBM/CMM should be sold under the domain of ORD Act 1948. BCCL may enter into anagreement with Govt. of India on lines similar to the CBM contracts on a nomination basisbecause it already holds the coal mining lease. It was also pointed out for methanedrainage at Moonidih UG mine permission from MoP&NG is required in pursuant to extantGovt. of India notification dated 3rd Nov.'15. On approval of the BCCL Board NIT will bepublished to invite Global e-tender for selection of the suitable experienceddeveloper/service provider.
3) Raniganj CMM Block (ECL Area): An area of about 57 sq km under miningleaseholds of Sripur Satgram and Kunustoria Areas of ECL in Raniganj Coalfield has beendelineated for commercial development of CMM having CBM resource of 3.93 BCM. Projectfeasibility report has been prepared based on Reservoir Modelling & Techno-Economicstudies and submitted to ECL for further perusal. Considering constraints like Mininglease below Damodar river limited access of free land & high cost of land requiredfor acquisition overlapping with GEECL extensive old working above potential coal seamfor CBM etc. it appears that the identified area may be technologically challenging forCBM/CMM extraction.
16.4 CMM/CBM Clearinghouse in India
A CMM/CBM clearinghouse was established at CMPDI Ranchi under the aegis of Ministry ofCoal and USEPA on 17th November 2008. The clearinghouse is functioning as the nodalagency for collection and sharing of information on CMM/CBM related data of the countryand help in the commercial development of CMM Projects in India by public/privateparticipation technological collaboration and bringing financial investmentopportunities.
The clearinghouse has been established with financial support from Coal India Ltd. onbehalf of Ministry of Coal and US EPA. The website of India Clearinghousehttp://www.cmmclearinghouse.cmpdi.co.in encompasses all the important information viz.EoI notifications newsletters in addition to information regarding opportunities existingfor development of CMM VAM etc. After completion of initial three years term it wasextended for another three years thereafter. USEPA had further extended support foradditional term i.e. three years upto 2017. US EPA is intended to extend their support for2018-21 (3 Yrs).
17. Commercial development of Underground Coal Gasification (UCG)
MoC has constituted Inter Ministerial Committee (IMC) for identification of areas forUCG on the line broadly similar to the existing policy of CBM development. Potentialblocks in coal (7) and lignite (7) were identified and considered in the IMC for thecommercial development of UCG preferably by PSUs. Identified Coal blocks for UCGdevelopment are in Wardha Valley Coalfield (Jogapur-Sirsi) Sohagpur Coalfield (Maiki(North)-Maiki-Merkhi Pathora Chainpa) Tatapani-Ramkola Coalfield (Reonti-West)Godavari Coalfield (Yelendu) and Singrauli Coalfield (Bandha).
Model Bid Document & Model Contract Document for Development of UCG has beensubmitted to MoC for consideration. A coal block (Kasta West) in Raniganj Coalfield underECL Command area has also been identified to undertake Pilot Scale UCG Project underR&D model in association with ECL/CMPDI/CIL.
18 S&T and R&D Projects
18.1 Projects on Coalbed Methane
18.1.1 S&T Project on "CBM Reserve Estimation for Indian coalfields"
A S&T project on "CBM Reserve Estimation for Indian coalfields" is underimplementation where IIEST Shibpur is the main implementing agency and NGRI HyderabadCMPDI and TCE Kolkata are sub implanting agencies. This project is approved under EoI ofCoal S&T project of MoC. The project is of 3 years duration with the revisedcompletion schedule of March 2019. Draft report of 2D Seismic survey conducted in SouthKaranpura Coalfield has been submitted by NGRI where 5 sq km area has been delineated for3D seismic survey which is likely to be undertaken by NGRI by December 2018.
18.1.2 S&T Project on "Capacity Building for Extraction of CMM Resource withinCIL Command Areas"
A S&T project on "Capacity Building for Extraction of CMM Resource within CILCommand Areas" has been approved under Coal S&T project of MoC and is underimplementation. CMPDI is the implementing agency and CSIRO Australia is sub-implementingagency. The project completion schedule is March 2019. The technical specification forlaboratory equipment have been finalized in association with CSIRO and equipment are underprocurement. Training of CBM Personnel and CBM Lab Personnel took place by CSIRO onlaboratory procedures and field testing protocols.
18.2 Project on Shale Gas
18.2.1 S&T Project on "Shale gas potentiality of Damodar Valley basins ofIndia"
A S&T project on "Shale gas potentiality of Damodar basin of India" underS&T plan of Ministry of Coal (MoC) is under implementation. The project objective isto evaluate Damodar basin for their shale gas potentiality through integrated geophysicalgeological geo-chemical and petro-physical investigations. The revised completionschedule is November 2018.
NGRI along with CMPDI & CIMFR selected Rangamati B block (Tumni & KanchanpurSector) Raniganj Coalfield and 3D seismic survey in 2.4 sq km out of total 3.2 sq km areahas been completed. Four boreholes have been proposed by NGRI for validation ofinterpretation. 3D seismic survey has started in Radhanagar block Jharia Coalfield. Oncompletion of 3D Seismic Survey findings CMPDI will take up its part of committedactivities i.e. drilling of deep boreholes.
18.3 Project on VAM
18.3.1 CMPDI has formulated a project jointly with CSIRO titled "Abatement andutilization of Ventilation Air Methane (VAM) from working underground degree - III coalmine in India". The implementing agencies for the project will be CSIRO and CMPDIwith BCCL as a sub-implementing agency. Identified project mine is Moonidih UndergroundMine in Jharia Coalfield of Bharat Coking Coal Ltd. (BCCL). CIL R&D Board hasapproved in principle the project with 100% retroactive funding at present and in duecourse 40% should be reimbursed from National Clean Energy & Environment Fund (NCEEF)for project duration of 36 months. CSIRO was requested to prepare a draft collaborativeagreement which is to be signed between CMPDI and CSIRO.
19. GEOLOGICAL EXPLORATION & DRILLING
CMPDI has substantially improved the capacity of drilling during XI & XII planperiod. As against the achievement of 2.09 lakh metre in 2007-08 CMPDI has achieved 5.63lakh metre in 2012-13 11.26 lakh metre in 2016-17 and 13.66 lakh metre achieved in2017-18 (Growth of 21% over 2016-17) through departmental resources and outsourcing.
19.1 Drilling Performance in 2017-18
CMPDI deployed its departmental resources for detailed exploration of CIL/Non-CILblocks whereas State Govts. of MP and Odisha deployed resources in CIL blocks only.Besides eight other contractual agencies have also deployed resources for detaileddrilling/exploration in CIL/Non-CIL blocks. A total of 140 to 160 drills were deployed in2017-18 out of which 66 were departmental drills.
Apart from it CMPDI continued the technical supervision of Promotional/NMETExploration work undertaken by MECL in Coal Sector (CIL Areas) in 8 blocks. Apart from itDGM(Nagaland) has also undertaken Promotional Exploration in 1 block & CMPDI in 2blocks in Coal Sector on behalf of Ministry of Coal. Promotional/NMET Exploration workwere undertaken by MECL in Lignite Sector in 5 blocks & GSI in 1 block. A total of1.35 lakh metre of Promotional (Regional) drilling was carried out in Coal (0.93 lakhmetre) & Lignite (0.42 lakh metre) during 2017-18 through CMPDI.
In 2017-18 CMPDI and its contractual agencies took up exploratory drilling in 118blocks/mines of 18 coalfields situated in 6 States. Out of 118 blocks/mines 42 wereNon-CIL/Captive blocks and 76 CIL blocks/mines. Departmental drills of CMPDI took upexploratory drilling in 50 blocks/mines whereas contractual agencies drilled in 68blocks/mines.
19.2 Geological Reports:
In 2017-18 23 Geological Reports were prepared on the basis of detailed explorationconducted in previous years. The prepared Geological Reports have upgraded about 5.0Billion Tonnes of additional coal resources to 'Proved' category.
Under Promotional Exploration Programme GSI and MECL have submitted 3 GeologicalReports on coal blocks established about 0.89 Billion Tonnes of coal resources in'Indicated' & Inferred categories above specified thickness.
Hydrogeological studies of a number of mining projects/mines were taken up forpreparation of 'Groundwater Clearance Application' for CGWA approval and EMP clearance.Hydrogeological studies for 18 mining projects were completed during the year and studiesfor 7 mining projects were in progress.
49 nos. of Hydrogeological studies on GR/PR and others have been completed during thisperiod. 7 nos. of Hydrogeological reports on Location and Design of Piezometers have beenprepared and submitted. Hydrogeological studies in 9 projects have been carried out forwater supply arrangement to mines colony and villages.
19 nos. of Groundwater Applications have been prepared and submitted online for WCL.Hydrogeological investigation for slope failure of benches at Juna-Kunada OCM WCL wasalso carried out.
CMPDI is carrying out groundwater monitoring of MOEF cleared projects (74 nos. of minesof WCL area and 15 nos. Cluster of mines in BCCL area). Water level monitoring in otherareas of ECL CCL SECL NCL and MCL were also carried out.
19.4 Geophysical survey
Geophysical Logging: Boreholes drilled for exploration purposes were geophysicallylogged to get the in-situ information of different strata encountered in the boreholes.During the year 2017-18 a total of 341422 metre of geophysical logging has been carriedout for this purpose in CIL and Non-CIL projects with multi-parametric geophysical loggingequipment. Out of this 133674 metre depth of logging was done by 6 departmentalgeophysical logging units and 207748 metre depth of logging was carried out bycontractual agencies.
Surface Geophysical Surveys: CMPDI has also undertaken Electrical Resistivity &Magnetic Survey in CIL and Non-CIL blocks for delineation of In-crop of coal seamsdelineation of dykes and ground water investigation. A total of 272.1 line km ofResistivity profiling 207 Vertical Electrical Sounding (VES) and 126.26 line km ofMagnetic survey have been carried out in 2017-18 for such purpose. With the 48-Channelsignal enhancement Seismographs a total of 122 line km of High Resolution Shallow Seismic(HRSS) survey has been carried out in Bartara block Sohagpur Coalfield Gautamdhara andBlock-IV blocks in Ib valley Coalfield and Sakhigopal-A block Talcher Coalfield.
The State of the art PARADIGM software for processing and interpretation of 2D Seismicdata has been installed at CMPDI and all the Seismic reports henceforth will be preparedby utilizing this programme.
Reports : A total of 23 Geophysical reports have been submitted during the year2017-18. It includes five reports on geophysical logging twelve on resistivity surveyand four on magnetic survey. In addition two number of reports on HRSS survey in Kewaiand Baheraband blocks of Sohagpur Coalfield were also submitted in 2017-18.
20. OUTSIDE-CIL CONSULTANCY SERVICES
During the year 2017-18 41 outside-CIL consultancy jobs were successfully completed byCMPDI for 31 organisations outside CIL. Some of the major clients/organizations are NTPCLtd. MOIL Ltd. Maharashtra State Power Generation Co. Ltd. (MAHAGENCO) THDC India Ltd.Odisha Coal and Power Limited (OCPL) Gujarat State Electricity Corporation Limited(GSECL) Madhya Pradesh Power Generating Co. Ltd. (MPPGCL) etc.
Presently 29 outside-CIL consultancy jobs are being executed by CMPDI for 16organisations like OCPL NALCO NTPC Ltd. SAIL NLC India THDC India Ltd. NationalMineral Development Corporation (NMDC) Jharkhand State Mineral Development Corporation(JSMDC) Odisha Mining Corporation Ltd. (OMC) PFC Consulting Limited (PFCCL) HINDALCOTalcher Fertilizers Ltd. etc.
During the year 2017-18 47 outside-CIL consultancy jobs worth Rs. 66.77 crores wereprocured by CMPDI from 27 organizations which includes consultancy jobs from Ministry ofCoal PSUs/Govt. Organizations and Private Companies.
21. RESEARCH & DEVELOPMENT PROJECTS
21.1 R&D Projects under S&T Grant of Ministry of Coal
The Research & Development (R&D) activity in Coal Sector is administeredthrough an Apex Body namely Standing Scientific Research Committee (SSRC) with Secretary(Coal) as its Chairman. The other members of this Apex Body include Chairman of Coal IndiaLimited (CIL) CMDs of Central Mine Planning & Design Institute Limited (CMPDI)Singareni Collieries Company Limited (SCCL) and NLC India Limited (NLCIL) DirectorGeneral (DG) of Directorate General of Mines Safety (DGMS) Director General of Council ofScientific & Industrial Research (CSIR) representatives from Department of Science& Technology; Adviser Energy NITI Aayog; Director CMIFR Dhanbad and Director TERI.The main functions of SSRC are to plan program budget approve new research projectsoversee their implementations and seek application of the R&D findings in actual fieldcondition.
The SSRC is assisted by a Technical sub-committee headed by CMD CMPDI. Thissub-committee deals with new research proposals related to production productivity andsafety in coal mines coal beneficiation and utilization clean coal technologiesprotection of environment and ecology etc.
CMPDI acts as the Nodal Agency for co-ordination of research activities in the coalsector which involves identification of Thrust Areas for research activitiesidentification of agencies which can take up the research work in the identified fieldsscrutiny and processing the proposals for Government approval preparation of budgetestimates for research activities disbursement of fund to implementing agencies based onthe progress of the project and monitoring the progress of the projects etc.
| Total no. of S&T projects taken up (till 31.03.2018) ||- 396 nos. |
| Total no. of S&T projects completed (till 31.03.2018) ||- 321 nos. |
21.1.1 Physical performance
The status of Coal S&T projects during 2017-18 is as under:
| ||(in nos.) |
|i) Projects on-going as on 1.4.2017 ||13 |
|ii) Projects approved by SSRC ||6 |
|iii) Projects completed ||2 |
|iv) Projects on-going as on 01.4.2018 ||17 |
21.1.2 Following coal S&T projects were approved during 2017-18:
1. Indigenous development of early warning radar system for predicting failures/slopeinstabilities in open cast mines - SAMEER Mumbai; ARDE Pune; CSRE; IIT Mumbai; CMPDIRanchi and NCL Singrauli.
2. Design of water network to optimize water consumption in coal washeries for removalof impurities from coal - IIT Roorkee; CMPDI Ranchi & CCL Ranchi.
3. Electronification of ground water control and conveyor systems in mines - NLC IndiaLtd. Neyveli and NITT Tamil Nadu.
4. Design and Stability of Pillars/Arrays of Pillars for Different Mining Methods inCoal Mine Workings - CIMFR Dhanbad; IIT-ISM Dhanbad; CMPDI Ranchi; SECL Bilaspur;BCCL Dhanbad and SCCL Kothagudem.
5. Hybrid PRESRIX process for simultaneous remediation of acid mine drainage andrecovery of individual metal sulphides - IIT Roorkee; NEC Margherita and SCCLKothagudem.
6. Reclamation of coal mined land of North Eastern Coalfields Assam through soilamendment and revegetation with native plant species using integrated biological approach- Rain Forest Research Institute (RFRI) Jorhat and NEC Margherita.
21.1.3 Following Coal S&T projects were completed during 2017-18:
1. Development of an on-line coal washability analyser - CIMFR Dhanbad and M/s ArdeeHitech Pvt. Ltd. Vishakhapatanam.
2. Sustainable livelihood activities on reclaimed open cast coal mines: a technologyenabled integrated approach in Indian coal sector - TERI / TERI University New Delhi;CMPDI Ranchi and BCCL Dhanbad.
21.1.4 Financial Status :
Budget provisions vis--vis actual fund disbursement during the period are givenbelow:
| || || ||(in Rs. Crores) |
|2016 -17 ||2017 -18 |
|BE ||Actual ||BE ||Actual |
|10.0 ||10.38 ||10.0 ||11.50 |
|(Including NER - 1.0) || ||(Including NER - 1.0) || |
21.2 CIL R&D Projects
R&D Board of CIL headed by Chairman CIL is responsible for in-house R&Dactivities of CIL. The R&D Board is assisted by an Apex Committee headed by Director(Tech.) CIL. CMPDI acts as the Nodal Agency for preparation of budget estimates forresearch activities evaluation of new project proposal disbursement of fund toimplementing agencies based on the progress of the project and monitoring the progress ofthe projects till their completion etc.
In order to enhance R&D base in command areas of CIL the CIL Board in its meetingheld on 24th March 2008 has delegated substantial powers to CIL R&D Board and also tothe Apex Committee of the R&D Board. The Apex Committee is empowered to sanctionindividual R&D project upto Rs. 5.0 Crore value with a limit of Rs. 25.0 Crore perannum considering all the projects together whereas CIL R&D Board is empowered tosanction individual R&D project up to Rs. 50.0 Crore with a limit of Rs. 500.0 crorein a year.
So far 86 projects have been taken up under the fund of CIL R&D Board out ofwhich 62 projects have been completed till March 2018.
The status of CIL R&D Board Projects during 2017-18 is as follows:
|(i) Projects on-going as on 1.4.2017 ||- 14 |
|(ii) Projects approved by R&D Board of CIL ||- 7 |
|(iii) Projects on-going as on 1.4.2018 ||- 21 |
21.2.1 Following new R&D projects were approved during 2017-18:
1. Design of cost effective process flowsheet for improved washing efficiency of IndianCoking and Non-coking coals - IIT-ISM Dhanbad; CMPDI Ranchi and BCCL Dhanbad (Technicalcollaboration with University of Newcastle (NIER Centre) Newcastle Australia).
2. Development of Guidelines for increasing the height of overburden dumps at opencastcoal mines in India - IIT-ISM Dhanbad and CMPDI Ranchi (Technical Participation -University of Queensland Brisbane Australia).
3. High ash coal gasification and associated upstream and downstream processes (Coal toChemicals CTC) - IIT-ISM Dhanbad; IIT-Roorkee; CMPDI Ranchi; MCL Sambalpur; ECLSanctoria and CCL Ranchi (Technical collaboration of IIT-ISM Dhanbad with AustralianUniversities viz. i) Curtain University Perth Western Australia ii) University ofMelbourne Melbourne Victoria and iii) Monash University Clayton Victoria).
4. Assessment of applicability and performance of Ground based Interferometry SyntheticAperture Radar (GbInSAR) in safety zoning of surface mining slopes - IIT Kharagpur andECL Sanctoria.
5. Optical fiber based solar illumination of pit bottom and underground mine roadwaysand working face - IIT Kharagpur and ECL Sanctoria.
6. Development of Virtual Reality Mine Simulator (VRMS) for improving safety andproductivity in coal mines - IIT-ISM Dhanbad; CMPDI Ranchi; BCCL Dhanbad; NCLSingrauli and SIMTARS Australia.
7. Dry Beneficiation of High Ash Indian Thermal Coal - National MetallurgicalLaboratory (NML) Jamshedpur; CMPDI Ranchi and MCL Sambalpur.
21.2.2 The disbursement of fund for CIL R&D projects during 2017-18 was Rs. 59.24Crore.
21.2.3 New initiatives:
Application of drone technology was tested for the first time in CIL on pilot scale.Drone based sensors were used in two projects of CCL namely Rajrappa and Topa formonitoring of land reclamation and identification of sites of illegal miningrespectively. In NCL drone based sensors were used in four projects namely JayantNigahi Dudhichua and Amlohri for generation of ortho-photo contours DTM and computationof stockpile volume. The results in all the above cases were very encouraging and wouldlead to adoption of this technology for regular use after the Govt. of India's policy ondrone/UAV is released.
22. INFORMATION AND COMMUNICATION TECHNOLOGY IN CIL
CIL and its subsidiaries have utilized Information and communication technology toachieve faster strategic decision making and optimal utilization of available resourcesfor enhancing production and productivity. Systems have been introduced to minimizepilferage of coal and also to increase transparency for the satisfaction of itsstakeholders.In this regard the following key initiatives have been taken:
1. E-office application for CIL and its Subsidiaries is implemented. The projectintends to enhance the business process management of the organization and aims to improveproduction productivity and increase transparency by replacing the old manual processwith an electronic file system. WAFA (Work Anytime from Anywhere) has also beenimplemented to provide access to users of E-office from any location beyond the officehours.
2. Coal India has digitized more than 80 Lakhs of documents at its corporate Hq tocreate a knowledge base under the project DDMA (Document digitization and ArchivalManagement).
3. The subsidiaries have CoalNet and other Information systems in place for obligatoryaccounting finance payroll material management system and other business functions.
4. CIL has introduced mobile Apps like SEVA GSKV for the benefit of its regularcustomers as well as Power sector customers.
5. CIL has introduced an e-portal for Coal quality monitoring also for its customers.
6. Coal India is also in the process of implementation of ERP at CIL and Pilotsubsidiaries. Tender for selection of the Service Integrator for the ERP has been floatedand in the process of finalization.
7. GPS based Operator Independent Truck Dispatch System (OITDS) with high speed Dataand Voice communication is implemented in the targeted eleven Open cast projects tooptimize operation of HEMM to enhance the production and productivity of the mine.
8. GPS/GPRS based Vehicle Tracking System across all major mines of Coal India has beenimplemented at different subsidiaries along with Geo-fencing boom barriers and RF-IDsystem to monitor coal transportation and to minimize pilferages.
9. Electronic Surveillance through CCTV at weighbridges workshops coal dumps andother strategic locations has been implemented and process has been initiated to cover allprojects.
10. Coal India has introduced an e-portal on Contract Labour Information system to keepan eye on fair payment to Contract workers deployed at various locations.
11. Biometric attendance system has been introduced in most parts of CIL and itssubsidiaries.
12. In order to improve coal dispatch electronic weighbridges are connected withCentral Servers of respective subsidiaries and initiatives have been taken up forimplementing online generation of Challans/invoices.
13. E-Auction of coal E-procurement and Reverse auction systems for all goods worksand services have been implemented to speed up procurement process and to achievetransparency in the system.
14. E-payment to employees and vendors E-filing of grievances are in operation toembark upon the business process through IT initiatives.
15. Corporate Mail Messaging System is in place for corporate email IDs to all theofficers of Coal India and its Subsidiaries.
16. In order to meet the demanding business process state-of-art IP based EPABX withsupport of convergent technology for voice and data Radio communication System and UGcommunication system at different locations of Coal India and its subsidiary companies areoperational.
17. The Web Portal of Coal India is in place in English and Hindi encompassing thefeatures like Tender publication Vigilance corner Investor center Customer corner etc.to facilitate all stake holders.
18. Multi-Protocol Layered Switching (MPLS) based Video Conferencing between CILSubsidiaries CIL HQ CIL Office Delhi and MoC for enhancement of decision making processfor better production and productivity has been successfully implemented. CIL andsubsidiaries have also implemented Video Conferencing connectivity with External agenciesacross the globe.
19. CIL has implemented in-house online portals for Performance evaluation qualityanalysis Vigilance clearance Land Information System filing of Annual Property Returnthrough web enabled system.
20. State-of-art Tier-III Data Center has been established in New building of thecorporate office of Coal India Limited for facilitating future IT applications.
23. MINES SAFETY
23.1: Statutory Frame-work for safety in coal mines:
Coal mining world over is highly regulated industry due to presence of many inherentoperational and occupational hazards and associated risks. Coal Mine Safety Legislation inIndia is one of the most comprehensive and pervasive statutory framework for ensuringoccupational health and safety (OHS). Compliance of these safety statutes is mandatory.
In India the operations in coalmines are regulated by the Mines Act- 1952 Mines Rules-1955 Coal Mines Regulations-2017 and several other statutes framed thereunder.Directorate-General of Mines Safety (DGMS) under the Union Ministry of Labour &Employment (MOL&E) is entrusted to administer these statutes. The following are thestatutes that are applicable in coal mines for occupational health and safety (OHS).
|SN ||Statute |
|1 ||The Mines Act -1952 |
|2 ||The Mines Rules -1955 |
|3 ||The Coal Mines Regulations - 2017 |
|4 ||The Mines Rescue Rules -1985 |
|5 ||The Electricity Act- 2003 |
|6 ||Central Electricity Authority (measures rel. to safety & supply) Regulations - 2010 |
|7 ||The Mines Vocational Training Rules -1966 |
|8 ||The Mines Crche Rules -1966 |
|9 ||Indian Explosive Act 1884 |
|10 ||The Explosive Rules - 2008 |
|11 ||Indian Boiler Act 1923 |
|12 ||Mines Maternity Benefit Act & Rules -1963 |
|13 ||The Workmen Compensation Act - 2009 |
|14 ||The Factories Act - 1948 Chapter -III & IV |
23.2 : Safety Policy of CIL : Safety is always given prime importance in theoperations of CIL as embodied in the mission statement of CIL. CIL has formulated awell-defined Safety Policy for ensuring safety in mines and implementation of the same isclosely monitored at several levels.
1) Operations and systems will be planned and designed to eliminate or materiallyreduce mining hazards;
2) Implement Statutory Rules and Regulations and strenuous efforts made for achievingsuperior standards of safety;
3) To bring about improvement in working conditions by suitable changes in technology;
4) Provide material and monetary resources needed for the smooth and efficientexecution of Safety Plans;
5) Deploy safety personnel wholly for accident prevention work;
6) Organize appropriate forums with employees' representatives for joint consultationson safety matters and secure their motivation and commitment in Safety Management;
7) Prepare annual Safety Plan and long term Safety Plan at beginning of every calendaryear unit-wise and for the company to effect improved safety in operations as perprevailing geo-mining conditions to prepare the units for onset of monsoon to fulfillimplementation of decisions taken by Committee on Safety in Mines and Safety Conferencesand to take measures for overcoming accident proneness as may be reflected through studyof accident analysis keeping priority in sensitive areas of roof-falls haulageexplosives machinery etc.
8) Set up a frame work for execution of the Safety Policy and Plans through the GeneralManagers of Areas Agents Managers and other safety personnel of the units;
9) Multi-level monitoring of the implementation of the Safety Plans through InternalSafety Organization at the Company Headquarters and Area Safety Officers at area level;
10) All senior executives at all levels of management will continue to inculcate safetyconsciousness and develop involvement in practicing safety towards accident prevention intheir functioning;
11) Institute continuous education training and retraining of all employees with theemphasis laid on development of safety oriented skills;
12) Continue efforts to better the living conditions and help all the employees both inand outside the mines.
To implement CIL Safety Policy the following are provided:
1. Provision of adequate funds for safety.
2. Deployment of adequate numbers of trained manpower for ensuring safety in miningoperations.
3. A well-structured and multi-disciplinary Internal Safety Organization (ISO)established in all the subsidiaries of CIL to monitor implementation of CIL's SafetyPolicy.
4. Continuous and sustained improvement in technological inputs for mining operation.
5. Support of scientific planning and R&D activities made available throughin-house expertise of CMPDIL and in collaboration with the other scientific agencies andreputed educational institutes.
6. Ensuring workers' participation in every forum for monitoring safety in mines.
23.3: Accident Statistics
Analysis of Accident Statistics in CIL - Accidents statistics is the relativeindicator for safety status in mines. Over the years the safety performance of CIL hasimproved significantly.
This improvement in mine safety in CIL is attributed to the following factors:
Collective commitment and synergetic collaboration of the Management Employeesthe regulator (DGMS) and Trade Unions.
Use of state-of-the-art technology in the field of Mining Methods MiningMachineries and Safety Monitoring Mechanism.
Continuous improvement in knowledge skill and responsiveness of workforcethrough imparting excellence safety training and persistent safety awareness drives.
Constant vigil round-the-clock supervision and supports from various agencies.
Salient features of continuous and sustained improvement in CIL's safety performance isdisclosed in Annexure 18.
23.4 Major Job Activities for Safety & Rescue Division of CIL:
1. Appraising the higher authority regarding any matter pertaining to mine safety.
2. Monitoring implementation of Safety Policy of CIL in different subsidiaries throughISO.
3. Regular inspection to monitor safety status of mines.
4. Conduct preliminary inquiry into incidences such as mine fire in-rush of waterslope failure etc. as well as all fatal accidents.
5. Monitor the safety related to MOU performance of all subsidiaries as well as CIL.
6. Organizing CIL Safety Board meeting and National Dust Prevention Committee (NDPC)meeting at corporate level and monitoring the implementation of recommendations madeduring these meetings.
7. Imparting advanced and specialized training (on preparation of risk based SafetyManagement Plan) to unit level and Area level executives of different subsidiaries withhelp of the executives who are accredited by SIMTARS (Safety in Mines Testing andResearch Station) Australia.
8. Liaison with MOC DGMS National Safety Council (NSC) Bureau of India Standards(BIS) and different educational and research/ scientific institutes.
9. Issuance of internal technical circulars and guidelines related to different safetyissues and monitoring their implementation.
10. Prepare safety aspects for the Annual Report of Board of Directors and MOC.
11. Prepare Agenda Notes related to mine safety for meeting of CMDs FDs and Board ofDirectors of CIL. 12. Maintenance of Accidents Statistics / Database.
13. Reply of different parliamentary questions related to mine safety.
14. Reply to different queries on mine safety raised by different standing committeessuch as standing committee on Coal & Steel Standing Committee on Energy Standingcommittee on Labour PCCM as well as questions raised by COPU MOC CA&G and VIPs fromtime to time.
15. Initiate and monitor safety related R&D projects in CIL.
16. Monitoring Rescue Infrastructure and their preparedness.
17. To monitor implementation status of recommendation of different court of inquiriesconstituted under section 24 of the Mines Act- 1952.
18. To monitor implementation status of recommendation of National Safety Conferences.
19. To co-ordinate with all Internal Safety Organisation (ISO)s on various mattersrelated to safety.
20. Quarterly publication of Safety Bulletin for disseminating and sharing of knowledgein order to promote safety awareness and inculcate better safety culture.
21. Instant sharing of incidences/accidents amongst subsidiary personnel for immediatecorrective action and prevention.
22. Intense awareness drive during "Meri Company Mera Gaurav" celebrations inall subsidiaries.
23. One day workshop on Mine safety at area and subsidiary level in the month ofFebruary 2018.
23.5 Measures for improvement of Mine Safety in 2017-18.
CIL has vigorously pursued several measures in the year 2017 alongwith on-going safetyrelated initiatives apart from compliance of statutory requirements for enhancing safetystandard in mines of CIL and its Subsidiaries which are given below:
Conducting Safety Audit: Safety Audit of all operating mines of CIL hasbeen conducted through multi-disciplinary Inter-Company Safety Audit teams in 2017 forassessing safety status of mines and violations pointed out during the said safety auditsare being rectified as per the stipulated timeline.
Online Safety Monitoring System: Online Centralized Safety MonitoringSystem "CIL Safety Information System (CSIS)" has been developed and uploaded inCIL website. Relevant safety related information from each mine is being uploaded in thesame system on continual basis for better safety management.
Imparting Special Training by SIMTARS Australia accredited Trainers:Executives who had undergone specialized training on Risk Assessment from SIMTARSAustralia are engaged in imparting training and upgrading the knowledge of Mine levelexecutives as well as Members of Safety Committees of individual mines to identify thehazards and evaluate the associated Risks in the mines so as to prepare Risk assessmentbased Safety Management Plans (SMPs) Principal Hazards Management Plans (PHMPs) andStandard Operating Procedures (SOPs).
Establishment of Geo-Technical Cell in all subsidiaries - Geo-Technicalcells have been established in all subsidiary HQ headed by a senior level officer ofMining Discipline and assisted by adequate number of Multi - Disciplinary technicalexperts including Geologist.
Safety Management Plans (SMPs) - Site-specific risk assessment based SMPshas been prepared for each mine of CIL by involving mine officials and workmen and thesame are being updated on continual basis. The process of Risk Assessment in mines iscontinuous and ongoing for improving Safety Standards of Mines on real time basis. AllSMPs are being monitored through ISO of each subsidiary.
Principal Hazards Management Plans (PHMPs): Principal Hazards ManagementPlans (PHMP) are also being formulated as a part of Safety Management Plan (SMP) to avertany mine disaster or major mine accident. Recommended control measures thereof in form ofTrigger Action Response Plan (TARP) are being implemented to safety deal with emergencyif any.
Standard Operating Procedures (SOPs): Site-specific Risk Assessmentbased Standard Operating Procedures (SOPs) for all Mining and Allied operations are framedand implemented. The same are being updated on continual basis to cater to the changingmine dynamics.
Conducting Special Safety Drives on different Safety Issues: SpecialSafety drives on different safety matters are being organized to improve safety standardof mines and enhance safety awareness amongst employees.
OB dump Stability Study: Assessment of OB Dumps and Benches have beenconducted thoroughly by using expertise of CMPDIL and multi-disciplinary ISO teams in mostof the opencast mines. Corrective actions are being taken based on the findings ofaforesaid assessment.
Guidelines on corrective measures: Several directives / guidelines oncorrective measures for prevention of recurrence of similar type of accidents/incidencesin future are being issued by the Safety & Rescue Division of CIL after analysis offatal accidents.
Apart from the above specific actions the following are on-going measures forimproving safety standards:
1. Emphasis on adoption of the state-of-the art technology in suitablegeo-mining locales.
a. Adoption of Mass Production Technology (MPT) in more number of UG mines.
b. Deployment of more number of Surface Miners to eliminate blasting operation in OCPs.
c. Deployment of relatively higher capacity HEMM in more number of OCPs.
d. Mechanization of UG drilling.
e. Phasing out manual loading in UG mines.
2. Adoption of the state-of-the art mechanism for Strata Management
a. Scientifically determined Rock Mass Rating (RMR) based Strata Support System.
b. Strata Control Cell for monitoring efficacy of strata support system.
c. Mechanized Drilling for Roof bolting.
d. Use of Resin Capsules in place of Cement capsules. e. Use of modern StrataMonitoring Instruments.
f. Imparting quality training to support crews & front-line mine officialssupervisors & grass root level workmen.
3. Mechanism for monitoring of mine environment:
a. Detection of mine gases by using Methanometer CO-detector Multi-gas detector etc.
b. Continuous monitoring of mine environment by installing Environmental TeleMonitoring System (ETMS) & Local Methane Detectors (LMD) etc.
c. Regular Mine Air Sampling and Analysis by Gas Chromatograph. d. Personal DustSampler (PDS).
e. Use of Continuous Ambient Air Quality Monitoring System (CAAQMS) in large OCPs toassess the ambient dust concentration and take suitable mitigative measures.
4. Strengthening Water Danger Management:
a. Conducting Check Survey & Joint Survey to eliminate errors in mine survey.
b. Preparation and maintenance of seam-wise Water Danger Plan.
c. Preparation and implementation of Monsoon Action Plan. d. Adequate PumpingFacilities with adequate capacity of Sumps.
e. Liaison with the State Meteorological Dept. & Dam Authority.
f. Construction of Embankments with proper design against water bodies.
g. Inter-mine joint survey between adjoining mines to prove inter-mine barriers toprevent transference of danger.
5. Training on Mine Safety & Skill Upgradation:
a. Initial and Refresher training & On-the-Job Training as per statute.
b. Training on Simulators to dumper operators.
c. Skill up-gradation of frontline mining supervisors / officials on continual basis.
d. Specific training of all employees including Members of Safety Committees andcontractual workmen on continual basis.
6. Mine Safety Inspection:
a. Round-the-clock Supervision of all mining operations by adequate number of competent& statutory Supervisors and mine Officials.
b. Periodic mine Inspections by Head Quarter and Area level senior officials.
c. Surprise back shift mine Inspections by mine and area level officials.
d. Regular Inspection by Workmen Inspectors appointed in each mine.
e. Regular mine Inspection by officials of Internal Safety Organization of respectivesubsidiary and CIL.
7. Steps for prevention accidents in OCPs:
Formulation and Implementation of Mine-specific Traffic Rules.
Code of Practices for HEMM Operators Maintenance staff & others.
Special training of Contractor's Workmen involved in contractual jobs.
Training imparted to dumper operators on Simulators.
Lighting arrangement using high mast towers for enhancement of illumination asper stipulated guidelines.
Eco-friendly Surface Miners for blast free mining and avoidance of associatedrisks.
Dumpers fitted with Proximity Warning Devices Rear view mirrors and cameraAudio-Visual Alarm (AVA) Automatic Fire Detection & Suppression System (AFDSS) etc.
Ergonomically designed seats & AC Cabins for operators' comfort.
Wet Drilling & water Sprinklers for dust suppression.
GPS based Operator Independent Truck Dispatch System (OITDS) in large OCPs fortracking movement of HEMMs inside OC mine.
8. Mine Emergency Response System:
Emergency Action Plans has been prepared as per statute for each mine.
Mock Rehearsals for examining the efficacy of Emergency Action Plan.
Demarcating Emergency Escape Routes in below ground.
Check list prepared for dealing with an emergency in mine.
Flow Chart prepared for transmission of information regarding crisis / disasterin mines from site of accident to the Ministry of Coal New Delhi.
24. Mine Rescue Services in CIL:
CIL is maintaining a well establishment Rescue Organization comprising of 6 MineRescue Stations (MRS) 13 Rescue Rooms-with-Refresher Training facilities (RRRT) and 17Rescue Rooms (RR).
All Rescue Stations / Rescue Rooms are fully equipped with adequate numbers ofrescue apparatus as per the Mine Rescue Rules (MRR) - 1985.
This Rescue Organization is staffed with adequate numbers of Rescue TrainedPersonnel (RTP) as per the MRR-1985.
All RTP are being periodically re-trained to conduct rescue operations in hothumid and irrespirable atmospheres in modern training galleries as well as in mines.
CIL employs Permanent Brigade Members and RTPs who are on call 24x7.
The Mine Rescue Station and Rescue Rooms are established at strategic locationsspreading across different Subsidiaries to cater to the emergencies in their command area.The details are as under: Rescue establishment presently operating
|Company ||Mine Rescue Station (MRS) ||Rescue room with Refreshers Training (RRRT) ||Rescue Room (RR) |
|ECL ||Sitarampur ||Kenda ||Jhanjra KalidaspurMugma |
|BCCL ||Dhansar ||- ||Moonidih Madhuband Sudamdih |
|CCL ||Ramgarh ||Kathara & Churi ||Dhori Kedla & Urimari |
|SECL ||Manindragarh Bisrampur Baikunthpur ||Sohagpur Kusmunda Johilla & Kotma korba ||Chirimiri Raigarh Bhatgaon Jamuna |
|WCL ||Nagpur ||Parasia PathakheraTadali ||Damua New Majri & Sasti |
|MCL ||Brajraj Nagar ||Talcher ||- |
|NEC ||- ||Tipong ||- |
|Total ||6 ||13 ||17 |
25. Safety Monitoring Mechanism in CIL:
Statutory Regulator for Mine Safety - The Directorate General of MineSafety (DGMS) is vested with the responsibility to ensure compliance of provisions underthe Mines Act- 1952 and Rules & Regulations made there under for improvement instandard of safety in mines. The structure of DGMS is as follows:
DG (Chief Inspector of Mines)
DDG (Regional Inspector of Mines ) one for each region
DMS (Inspector of Mines) for group of mines under one DDG
DDMS (Inspector of Mines) 3-4 mines under one DMS
Safety Monitoring Agencies in CIL -
CIL Safety Board (at CIL corporate level) S&R Division CIL
Tri-partite Safety Committee (At Subsidiary HQ) ISO (Internal safety Organisation)
Tri-partite Safety Committee (At Area) Area Safety Officer
Workman Inspectors (Mining / Mechanical / Electrical) Safety Committee Safety Officer
Safety Implementation in CIL: Organizational hierarchy for implementationof Safety Policy in mines of CIL is as under:
Owner Director (Technical) in case of CIL & its subsidiaries
Agent (Area GM & SAM / PO)
Manager ( Mine Manager)
Safety Officer Ventilation Officer Asst. Manager & Engineer
Overman Foreman & Electrical Supervisor
26. HUMAN RESOURCE DEVELOPMENT
Coal India Limited has an ambitious target of achieving its coal production of 1billion ton in coming years. For achieving this goal Coal India Ltd is geared up for thedevelopment of its Human Resources to prepare them for technological advances and skillrequirements for future to fulfill the growing demands of production along withdiversification into different areas.
During 2017-18 different training programs were organized at subsidiary HQs TrainingCenters Vocational Training Centers (VTCs) and also at CIL's own in-house advancetraining facility viz Indian Institute of Coal Management (IICM) Ranchi. These trainingprograms were organized after assessing the training needs in the respective category ofemployees.
In addition to in-house training employees were trained at reputed training instituteswithin the country and abroad in their respective field of operations for supplementingour in-house training efforts.
The total manpower of the CIL as on 01.04.2017 was 310016 which has become 298757as on 31/03/2018. Employees were given training for skill development and acquisition ofknowledge and skill in existing and future technology as well as on safety. During theyear more than 602300 training man-days were achieved for these employees includingexecutives & non-executives and excluding contract workers.
26.1 Special Initiatives:-
5 weeks intensive training for 89 Assistant Managers/Management Trainees wasorganized at IIT(ISM) Dhanbad.
125 middle level executives were exposed to two weeks training on GeneralManagement at Administrative College of India (ASCI) Hyderabad to equip them to take uphigher responsibilities.
179 E4/ E5 level executives were sent for two weeks training programme onExecutive Development at Indian Institute of Management (IIM) Lucknow.
160 participants have attended a specially designed program on "Ethics inPublic Governance" through IC Centre for governance in Panchgani Maharastra.
2 weeks training on land acquisition and R&R was imparted to 37 participantsunder the LARR program organized by Administrative Staff College of India (ASCI)Hyderabad.
44 senior executives attended training programs on "Developing StrategicAttributes in Evolving Business Scenario" at LBSNAA Mussoorie.
26.2 Skill India Mission of Govt. of India:-
CIL is also committed to support the Skill India Mission of Govt. of India.Achievements till date in this area are given below:-
Training and assessment have been done for 35253 own employees of CIL to bringthem in line with NSDC Qualifications.
4700 contract workers engaged in CIL operations have been trained and certifiedby NSDC.
574 newly inducted employees of WCL were imparted training in line with NSDCQualification and are currently engaged in WCL
Fresh Skilling under NSQF aligned training programs was imparted to 1394youth and women from operational areas of CIL out of whom 706 persons have been placed indifferent organizations.
During the financial year 2017-18 CIL has inducted fresh talent into the organizationat the entry level 1143 Management Trainees were selected through direct recruitment.They have been imparted induction training and posted to different Subsidiaries based onmanpower requirement.
27.1 The total manpower of the Company including its subsidiaries as on 31.03.2018is 298757 against 310016 as on 31.03.2017. Subsidiary company wise position ofmanpower is disclosed in Annexure 19.
27.2 The presidential directives for Scheduled Caste/Scheduled Tribes/OBC have beenimplemented in all the subsidiaries/units of Coal India Limited. The representation ofSC/ST employees in total manpower of CIL and its Subsidiary Companies as on 01.01.201601.01.2017 and 01.01.2018 is given below :-
|As on ||Total Manpower ||Scheduled Caste ||Scheduled Tribe |
| || ||Nos. ||Percentage ||Nos. ||Percentage |
|1.1.2016 ||326032 ||70502 ||21.62 ||39669 ||12.17 |
|1.1.2017 ||313809 ||70513 ||22.47 ||39721 ||12.66 |
|1.1.2018 ||302006 ||57761 ||19.13 ||41373 ||13.70 |
28. INDUSTRIAL RELATIONS AND EMPLOYEES' PARTICIPATION IN MANAGEMENT
The Industrial Relations scenario in CIL & its subsidiaries during the financialyear remained cordial. JCCs and different Bipartite Committees at Unit/Area levels andSubsidiary (HQ) levels continued to function normally. Meetings of Apex JCC were held atregular intervals at CIL.
Strikes and Bandhs:
During 2017-18 no Strike took place in the Subsidiaries of CIL. There were 6 Bandhcalled by regional parties in the area of operation of subsidiary companies viz. MCL CCL& CMPDIL where normal working was affected.
Subsidiary wise details of strikes man-days lost and production lost and otherincidents for the year 2016-17 and 2017-18 are furnished in
The salient features of the "10th Wage Agreement for CIL and SCCL" are asfollows:-
1. The periodicity of the 10th Wage Agreement shall be for 5 (five) years w.e.f.01.07.2016
2. Minimum Guaranteed Benefit (MGB) shall be 20% of the total emolument (Basic + VDA +SDA + Attendance Bonus) as on 30.06.2016.
3. Minimum Basic enhanced from Rs. 15712.62 per Month to Rs. 26292.97 Per Month w.e.f.01.07.2016.
4. Special Allowance shall be paid @ 4% of revised Basic as on 01.07.2016 and frozen inabsolute amount for the entire period of 10th Wage Agreement.
5. Annual increment @ 3% on progressive basis.
6. Underground Allowance shall be 9% (in case of Assam-10.5%) of Revised Basic as on01.07.2016 and amount so arrived at will be frozen for the entire period of 10th WageAgreement.
7. Travel assistance amounting to Rs. 8000/- and Rs. 2000/- shall be paid for visitingHome Town and 'Bharat Bhraman' respectively once in a block of 4 Years. 01.07.2016.
8. House Rent Allowance (other than Urban Areas i.e. Coalfields Areas) shall be paid @2% of the revised notional Basic as on 01.07.2016 and be frozen in absolute amount for theentire period of 10th Wage Agreement. The revised HRA will be paid w.e.f. 01.10.2017.
9. To sustain the corpus of CMPS 1998 JBCCI has recommended that both the employee aswell as employer shall contribute equally i.e. 7% of Revised Basic & VDA aftersubsuming the existing percentage of contribution. The deduction shall be made w.e.f.01/10/2017. It will be funded subject to the approval of BoT/CMPFO/GoI.
10. Regarding Contributory Post Retirement Medicare Scheme for Non-Executives(CPRMS-NE) an amount of Rs. 40000/- shall be contributed by the employees on roll as on01/07/2016 as a membership contribution and Management shall contribute Rs. 18000/- permember w.e.f. 01/07/2016. In respect of employees who were separated from the servicesprior to 01.07.2016 no contribution shall be made by the Management. However theseemployees (separated prior to 01.07.2016) can join the scheme before 31.12.2017 by makinga contribution of Rs. 40000/-. The scheme will be reviewed after two years and thebenefit under the scheme shall be modified if required.
29. EMPLOYEES' WELFARE AND SOCIAL SECURITY SCHEMES
1) HOUSING :
Company has its own housing establishments with basic facilities near its mines.Presently housing satisfaction of employees has reached 100% in the mining areas.
2) WATER SUPPLY :
As against 2.27 Lakhs population consisting of employees and their families havingaccess to potable water at the time of Nationalisation in 1973 presently a populace of19.62 lakhs (100%) has been covered under water supply scheme.
3) MEDICAL FACILITIES :
Coal India Ltd and its subsidiaries are extending medical facilities to its employeesand their families through various medical establishments companies run Dispensary levelto the Central and Apex Hospitals in different parts of the coalfields.
There are 80 Hospitals with 4938 Beds 376 Dispensaries 541 Ambulance and 1150 Doctorsincluding Specialists in CIL and its subsidiaries to provide medical services to theemployees. In addition arrangements have been made for referral to reputed hospitals fortreatment not available in company hospitals.
Moreover medical facilities are also provided to the inhabitants residing in andaround mines premises of the subsidiary companies of CIL.
4) EDUCATIONAL FACILITIES :
Subsidiary companies have entered into MoU with DAV DPS Kendriya Vidyalaya etc. toprovide better educational facility to the employees wards and financial assistance by wayof deficit grant and infrastructure facilities are provided to these schools.
Coal India Scholarship Scheme
In order to encourage the children of the employees of Coal India Limited two types ofScholarship namely Merit and General Scholarship are being provided every year underprescribed terms and condition.
In addition facility for Reimbursement of tuition fees and Hostel Charge forstudying in Government Engg. & Medical College for Financial year 2017-2018 is alsoextended to the children of wage board employees.The details are disclosed in Annexure20.
5) Statutory Welfare Measures:-
In terms of provisions of the Mines Act 1952 and Rules and Regulations framedthere-under subsidiaries of Coal India Limited are maintaining required statutory welfarefacilities like Canteens Rest-rooms Drinking water facility etc. at mining premises foruse by both regular and contractor workers.
6) Non-statutory Welfare Measures:-
Co-operative Stores and Credit Societies:
In order to supply essential commodities and consumer goods at a lesser cost in theCollieries 16 Central Co-operatives and 99 Primary Co-operative Stores are functioning inthe Coalfield areas of CIL. In addition 158 Co-operative Credit Societies are alsofunctioning in the Coal Companies.
7) Banking Facilities:-
The Management of Coal Companies are providing infrastructure facilities to the variousNationalised Banks for opening their Branches and Extension Counters in the Coalfields forthe benefit of their workers. Workers are educated to draw their salaries through 427 BankBranches and 48 Bank Extension Counters and they are also encouraged to practice thriftfor the benefit of their families.
A sports policy of CIL and its subsidiaries was approved by CIL Board in its 296thMeeting held on 25th March2013 and accordingly Coal India Sports Promotion Association(CISPA) has been registered under West Bengal Societies Registration Act 1961. CISPA hasundertaken several sports activities at National and International Levels.
9) Welfare Development and Empowerment of Women
The company extends active support to the forum of Women in Public Sector (WIPS). WIPSat various subsidiaries and CIL(HQ) undertake various activities which include welfareactivities training & development activities seminars cultural programmesindustrial awareness visits health awareness programme etc for the WIPS members womenworkers their family members. Coal India Ltd and its subsidiary companies are extendingfull fledged support and patronage to the National Conference of Forum of WIPS held everyyear in February. In recent years the WIPS cell have done commendable work in reachingout to the grass root level women employees empowering training and uplifting theirmorale by recognizing outstanding achievement recognizing and honouring the exceptionaltalent. CIL was awarded second prize under Best Enterprise Award (Maharatna Category) in2017-18 by WIPS
10) Special Cash Award:-
During 2017-18 an amount of Rs. 146000/- has been given as Special Cash Award to 26meritorious children of employees of CIL(Hqrs.) Kolkata Desk Offices of subsidiarycompanies @ Rs.7000/- for 08 (Eight) students who have secured 90% or above marks in theClass-XII Board level examination and @Rs.5000/- for 18(Eighteen) students who havesecured 90% or above marks in the Class-X Board level examination.
11) Recreational facilities:-
At present eight Holiday homes are being maintained for the welfare of CIL employeesand their families.
12) CIL Welfare Board :-
Coal India Welfare Board is the decision making forum regarding welfare policies forbetterment and improvement of living condition of employees of the Company.
The members of CIL welfare board comprising Central Trade Union and Managementsrepresentatives meet regularly to discuss the welfare measures and review theimplementation of different welfare schemes. The meetings of the Welfare board are beingconducted regularly.
30. TREE PLANTATION / AFFORESTATION
Plantation and Green belt are developed through extensive tree plantation programmeevery year by the subsidiaries of Coal India Ltd. Avenue plantation plantation on the OBdumps plantation in and around mines residential colonies and available government landis undertaken in the existing as well as the new projects.
The subsidiaries of CIL have planted around 19.9 lakh saplings during 2017-18 in anarea covering 821.52 Ha. Since inception subsidiary companies of CIL have planted 96million plants covering an area over 38378 Ha. till March 2018.
Furthermore subsidiaries of CIL have planted 3.3 lakh saplings in an area of 277.3 Hain Government land in association with State Forest Divisions during 2017-18.
31. PROGRESSIVE USE OF HINDI.
Keeping abreast with the spirit of the constitution of India Coal India Limited (CIL)continued its efforts to propagate and spread the progressive use of Official Language.The company is committed to implement the provisions of the Official Languages Act Rulesand Regulations. For this purpose structured periodical meetings and reviews are doneregularly by the top officials. A brief description of the works done during the yearunder review towards implementation of Rajbhasha is appended below:-In total 4 Hindiworkshops were organized regularly with a view to create working atmosphere for working inRajbhasha and to combat hesitation of employees to work in Hindi. During the year 111employees participated in such workshops which helped to boost their knowledge in doingregular Official works in hindi.
In the presence of Hon'ble Governor Shri Kesharinath Tripathi West Bengal on12.08.2017 half-yearly meeting cum Rajbhasha Conference of Town Official LanguageImplementation Committee (PSUs) Kolkata was successfully concluded at the auditorium ofCoal India Headquarters. Along with this in order to promote use of Hindi as OfficialLanguage 'Babuji's Passbook' drama was successfully staged on 12.08.2017 in CILauditorium in the presence of large number of employees and their families.
With an aim to promote Official language and to foster interest in Official Languageamong officers and employees a half-yearly Hindi Magazine namely "KoylaDarpan" is being published from Coal India Headquarters. During the year 2017-18its third and fourth issue have been published. The purpose of publishing the magazine isnot only to showcase the activities of CIL but to provide a platform for nurturingcreative potential of employees.
Like past years in September 2017 with a view to create conducive atmosphere forworking in Hindi and accelerating the use of Hindi as Official Language among officials HindiFortnight' was observed in all offices of Coal India Ltd. During the fortnight variousHindi Competitions such as noting and drafting self-writing dictation translationtyping and speech etc. competitions were organized where a large numbers of employeesparticipated enthusiastically. The winners were awarded with Cash prizes &Certificates. All these events help in creating consciousness among employees to useRajbhasha in official Work. It is notable that Regional Sales Office CIL situated atdifferent cities were granted sufficient fund to celebrate Hindi Diwas & Hindiweek/fortnight as per the practice.
During the year as a new initiative translation competition is being organized everytwo months to increase the knowledge of Hindi in the office work among the officials.Apart from this in order to fulfill the assurances given to the Parliamentary OfficialLanguage Committee during the inspection of CIL on 18.01.2017 1000 pages of contentsavailable in English on CIL's website have been translated into Hindi and uploaded to thewebsite in the 1st phase. The balance work of 2nd phase has also started and are likely tobe completed by year end.
To smoothen working in hindi supportive literature and dictionaries were provided tothe departments as and when required. 'Today's Word' and 'Today's Thought' are displayedon all the signages at the New Office Complex Rajarhat.
Coal India always lays emphasis on imparting training of Hindi Language under Hinditeaching scheme of Govt. of India by nominating the employees in Hindi Praveen& Pragya classes. During the year 2017 ten (10) employees were given trainingin Hindi Praveen and Pragya classes. Further in session started fromJanuary 2018 Sixteen (16) employees have been nominated in Hindi Praveen class forattaining the working knowledge of Hindi.
Inspection of offices is a part of the strategy for implementation of official languagein company's works. During the year Officials of Rajbhasha department CIL (HQ) reviewedthe status of implementation of the Official Language in RSO Mumbai & Chennai andoffices of CCL CMPDIL and NEC and suggested remedial measures.
Recognizing such praiseworthy works of CIL during the year CIL was conferred thefollowing Awards:-
A) 1st Prize of TOLIC (PSUs) Kolkata : Under the Rajbhasha Award Scheme of theGovt. of India on 12.08.2017 Honourable Governor of West Bengal Shri KesharinathTripathi awarded TOLIC (PSUs) Kolkata Shield - 1st Prize to Coal India Ltd. in theCorporate Offices category for best implementation of Official Language Policy of theUnion.
B) Award to CIL's Hindi magazine Koyla Darpan' : On 12.08.2017 Coal Indiaheadquarters' Hindi magazine Koyla Darpan' was awarded 3rd prize in the HouseMagazine category by TOLIC (PSUs) Kolkata.
32. VIGILANCE SETUP
The anti-corruption activities in CIL and its Subsidiary Companies have beeninstitutionalized by setting up Vigilance Departments headed by a Chief Vigilance Officer(CVO) appointed by the Govt. of India in consultation with Central Vigilance Commission(CVC) on tenure basis drawn from various government services.
During the year 2017-18 38 Intensive Examination of Works/Contracts (Major works) wereundertaken by CIL(HQ) and its subsidiary companies. In addition302 Surprise checks werecarried out. Besides 60 Departmental Inquiries were disposed of which resulted inpunitive action against 324 officials. Such examinations/investigations have resulted intoinitiation of various system improvement measures.
As per directives of Central Vigilance Commission Vigilance Awareness Week - 2017 hasbeen observed in Coal India Limited IICM- Ranchi North Eastern Coalfields-Margherita& Regional Sales Offices across the country besides all the Subsidiary Companiesw.e.f. 30.10.2017 TO 04.11.2017 emphasizing the theme of "My Vision-Corruption Free India".
During the week various activities in order to generate awareness educate and discusstransparency among officials/stake holders as well as general public to arrest the rootcause & threat of corruption and to promote good governance were organized.
1. Inauguration -
The Vigilance Awareness Week commenced with the administration of Pledge to theemployees by Shri C K Dey Director (Finance) CIL while inaugurating the week on 30thOctober 2017.
2. Wide Publicity -
1000 pamphlets distributed to CIL HQ Employees Visitors ContractualWorkers/ Drivers and Vendors with Vigilance Message and they were requested to takee-pledge. Throughout the week 6 e-posters displayed in all the digital signage in CIL HQ.
The posters/banners/pamphlet/canter/ 2D gate specially designed for VAW-2017 andevents organized during the week has been uploaded in Company's official Facebook page.Also the same has been posted in CVO CIL and CIL official twitter account.
40 banners of size 5ft x 4ft has been displayed in prominent placesacross Kolkata.
100 Posters with Anticorruption and Vigilance Awareness message displayedacross Kolkata in public places.
Through News Papers in 10000 Households Shops and Offices in Salt-lakeand Ultadanga Area. Also 5000 pamphlet with 2018 calendar distributed to citizens inpublic places and schools/colleges etc.
SMS- 19000 SMS through NIC email have been generated to employees of CILIICM NEC RSOs & subsidiaries with Vigilance quotes and with request to takee-pledge. One lakh SMS blast with anti-corruption message has been shared through BSNLacross Kolkata.
Radio Jingle - Two Radio Jingle both in English and Bengali telecasted inFM Rainbow AIR in West Bengal (Kolkata and outskirts) throughout VAW-2017 (30.10.17 to04.11.17).
3. Employees Competitions -
i. Slogan Competition for Employees of CIL HQ on TOPIC- "MY VISIONCORRUPTION FREE INDIA".
ii. Essay Competition for Employees of CIL HQ on TOPIC- "DIGITIZATION: APATH TOWARDS CORRUPTION FREE INDIA".
iii. Quiz Competition for Employees of CIL HQ on issues in Vigilance CVC andother Anti-corruption Laws Policies manuals and guidelines of CIL.
iv. System Improvement/New Initiatives Competition for Employees at CIL HQ.
v. Public Speaking Competition for Employees of CIL HQ on topic -"DEMONETIZATION: A PILL TO KILL THE DEMON OF CORRUPTION".
4. Competitions for Wards and Spouses of Employees -
i. Elocution Competition for wards of Employees of CIL HQ studying in Class IX to X ontopic "ETHICAL EDUCATION IS GOOD INSTRUMENT TO CURB CORRUPTION".
ii. Essay Competition for Spouses of Employees of CIL HQ on TOPIC- "ROLE OFFAMILY IN ERADICATING CORRUPTION".
5. Training Program for Junior Level Managers of CIL -
A one day orientation program for newly recruited Junior Level Managers of CIL wasorganized in two batches focusing on Vigilance Administration in PSUs Conduct Discipline& Appeal Rules of CIL and Common Irregularities.
6. Workshops / Sensitization programmes -
500 Nos of Vigilance Case Studies Vol-3 unveiled during the Vigilance Awareness WeekValedictory Function for distribution across CIL & Subsidiaries. The soft copy of thebook was also uploaded in CIL Website.
7. Organization website
Organization website has been used to propagate the messages of CVC and encouragingcitizens to take e-pledge.
8. Stakeholders Meet -
1. Stakeholders Meet organized with Vendors and Customers on 02.11.2017 at CIL HQ toredress their issue.
2. Stake Holder's Online feedback survey conducted through CIL Website.
9. Workshops / Sensitization programmes
1. Motivational Speech of Shri P S Rathore Motivational Speaker Life Coach andAuthor was organized on 01.11.2017 at 12 Noon. The event was attended by all employeesof CIL HQ and their family members.
2. Seminar on CVC theme "My Vision- Corruption Free India"Concluding Ceremony and Prize distribution to winners of event organized during the weekon 07.11.2017.
3. Morning prayer "Itni Shakti Hame Dena Data
" was startedfrom 30.10.2017 in the reception area. The prayer is held daily at the reception area at9.45 AM.
Implemented Preventive Vigilance/ System Improvement
1. In case of Road Sales loading by Pay Loaders should be stopped and loading of Coalon Road Sale Vehicles through bunker/hopper to be ensured. In the existing CHPspossibility of introducing direct truck loading to be explored and action for installationof mini CHP near suitable place for truck loading is to be ensured.
2. Modification of proven-ness criteria for procurement of steel cogs/props & otherfabricated items for getting competitive bidding.
3. SOP for implementation of different IT initiatives issued after approval ofChairmanCIL
Further System improvement suggestions :
System improvement suggestions were made in many areas:
a. Formulation of a standard NIT for recruitment process through outsourced agency b.System improvement for procurement of Self Contained Breathing Apparatus.
c. Rationalisation for OBR measurement & subsequent finalization of report by CMPDIand use of Drone UAV for measurement of large coal stock and OBR .
d. Use of UAV & space technology for prevention of Coal pilferage & illegalmining and monitoring of environment plantation vegetation & water bodies.
e. Issue of Penalty by DA only as specified in CDA Rules under clause no. 27.0. (Orderissued by CMDCIL vide no. CIL/CH/44/475 dt. 16.03.17.)
f. In OB contracts review of Additional Performance Security clause and specific timelimit for submission of Performance Guaranty and Additional Performance Security and suchother provisions may also be incorporated in manual.
g. Vendor development programme may be undertaken through mechanism as laid down inPurchase Manual to increase competition.
System Improvement Studies - Studies were taken in the following areas
|Sl. ||Subject of Study |
|1 ||Measurement of OB and Coal in outsourced patches |
|2 ||CSR Policy of CIL and monitoring of projects. |
|3 ||Inventory of Land Records |
|4 ||RDA initiated on CBI Reports |
|5 ||E-surveillance through VTS CCTV Weigh-Bridge connectivity RFID & other IT initiatives. |
|6 ||Implementation of Bill tracking system. |
|7 ||BG receipt and verification through SMFS |
|8 ||Complaint handling System. |
|9 ||Procurement policy at CIL & subsidiaries and Standardization of NITs . |
|10 ||Recruitment process in CIL & subsidiaries. |
|11 ||Policy for compassionate appointment of medical unfit cases. |
33. PARTICULARS OF EMPLOYEES
No employee received remuneration either equal to or in excess of the limits prescribedunder Rule 5(2) of Companies (Appointment and Remuneration of Managerial Personnel) Rules2014 during 2017-18. Details of Rule 5(1) of Companies (Appointment and Remuneration ofManagerial Personnel) Rules 2014 on disclosure in the Board Report with reference toremuneration of managerial personnel of Top 10 employees are annexed to the Report. (Annexure21).
34. BOARD OF DIRECTORS
Shri Anil Kumar Jha was appointed as Chairman cum Managing Director (CMD) w.e.f.18.05.2018. Shri Suresh Kumar Addl. Secretary MoC was holding an Additional Charge ofCMD from 23.04.18 till 18.05.18 and Shri Gopal SinghCMDCCL was holding an AdditionalCharge of CMD from 01.09.17 till 20.04.2018. Shri S. Bhattacharya was Chairman cumManaging Director till 31.08.17. Shri C.K. Dey Director (Finance) and Shri S.N.PrasadDirector (Marketing)were on the Board throughout the year. Shri Binay Dayal was appointedas Director (Technical) w.e.f. 11.10.2017. Shri S. Saran CMD CMPDIL was holding anadditional charge of Director (Technical) CIL from 31.10.2016 till 10.10.2017. Shri R.P.Srivastava assumed the charge of Director (P &IR) from 31st Jan'18. Shri R.R.MishraCMD WCL was holding an additional charge of Director (Personnel) from 19.06.17 till30.01.18. Shri S N Prasad Director (Marketing) was holding an additional charge ofDirector (Personnel) from 31.03.17 till 18.06.17.
Shri R.K.Sinha Joint Secretary MoC continued throughout the year. Mrs Reena SinhaPuri JS &FA MOC was appointed as an official part time Director vice Sri VivekBharadwaj from 9th Jun17 and continued during the year.
Ms. Loretta Mary Vas Dr S.B. Agnihotri Dr D.C. Panigrahi Dr. Khanindra Pathak andShri Vinod Jain were appointed as Independent Directors on the Board on 17.11.15 andcontinued throughout the year. Shri V.K.Thakral and Shri B.L.Gajipara were appointedIndependent Directors on the Board w.e.f. 06.09.17 and 22.09.17 respectively.
Shri R.R. Mishra CMD WCL and Shri S. Saran CMD CMPDIL continued throughout the yearas permanent invitees. Shri A.K.Gupta Addl. Member (Traffic transportation) Railway Boardwas appointed as permanent invitee from 05.08.2016 and continued till 31.01.18. On hissuperannuation Shri Anurag has been appointed as permanent Invitee from 19th Jun'18.
Your Directors wish to place on record their deep sense of appreciation for thevaluable guidance and services rendered by the directors during their tenure who ceasedto be the Directors during the year.
In terms of Article 39(j) of the Articles of Association of the Company one third ofretiring Directors are liable to retire by rotation shall retire at the ensuing AnnualGeneral Meeting and they are eligible for reappointment.
The Board of Directors held 22 meetings during the year 2017-18.
35. Composition of Audit Committee
CIL in pursuance of excellence in corporate governance formed an Audit Committee of itsBoard of Directors w.e.f. 20-07-2001 and and the present Audit Committee wasre-constituted by the Board in its 349th meeting held on 28th Oct'17 consisted of fourIndependent Directors one Functional Director one Government Nominee Director and onepermanent invitee. Details are disclosed in Corporate Governance Report under point number3.1.
36. Composition of CSR Committee
Details are disclosed in Corporate Governance Report under point number 3.6.
37. Declaration given by independent directors under sub-section (6) of Section 149.
The following independent directors have given their consent during 2017-18 that theymeet the criteria of independence as stipulated in subsection (6) of Section 149 of theCompanies Act 2013.
i. Ms. Loretta M Vas
ii. Dr. S.B.Agnihotri
iii. Dr. D.C.Panigarhi iv. Prof. Khanindra Pathak
v. Shri Vinod Jain
vi. Shri V.K.Thakral
vii. Shri B.L.Gajipara
38. Reappointment of Independent Directors- Section 149(10)
No Director was reappointed in terms of section 149(10) of the Companies Act 2013.
39. Recommendation of Audit Committee by the Board.
All the recommendations made by Audit Committee were accepted by the Board.
40. Company's policy on directors 'appointment and remuneration including criteria fordetermining qualifications positive attributes independence of a director and othermatters provided under sub-section (3) of section 178.
MCA vide Notification dated 5th June'2015 has exempted the above for Governmentcompanies.
41. Remuneration policy of directors KMPs and Senior Management - Section 178(4).
MCA vide Notification dated 5th June'2015 has exempted the above for directors ofGovernment companies.
42. A statement indicating the manner in which formal annual evaluation has been madeby the Board of its own performance and that of its committees and individual directors.
MCA vide Notification dated 5th June'2015 has exempted the above for Governmentcompanies.
43. Contracts or Arrangements with Related Parties
Related party transactions made with the subsidiary companies and that all suchtransactions were exempted under Regulation 23(5)(a) and (b) of Securities and ExchangeBoard of India (Listing Obligations and Disclosure Requirements) Regulations 2015 beingtransactions between two government companies and transactions entered between a holdingand its wholly owned subsidiaries whose accounts are consolidated with holding company andplaced before the shareholders at the general meeting for approval. However theremuneration paid to Key Managerial Personnel is being disclosed separately in point no VIof Annexure 22.
44. Loan guarantees or investments by a company under section 186 of the Act
Loan guarantees and investments made by Coal India Limited in terms of Section 186 ofthe Companies Act 2013 is enclosed in Annexure 23.
45. Familiarization programme of Board Members.
Board of Directors are fully briefed on all business related matters associated risknew initiatives etc. of the company. The Board of directors were also briefed about theprovisions of Companies Act 2013 Prohibition of Insider Trading Regulations 2015 andSEBI (Listing Obligations and Disclosure Requirement) Regulations 2015. As per Regulation25 of SEBI (Listing Obligations and Disclosure Requirement) Regulations 2015 the listedentity shall familiarize the independent directors through various programmes about thelisted entity including the following:
(a) Nature of the industry in which the listed entity operates;
(b) Business model of the listed entity;
(c) Roles rights responsibilities of independent directors; and
(d) Any other relevant information.
As per regulation 46 of SEBI (Listing Obligations and Disclosure Requirement)Regulations 2015 the details of the familiarization programmes is to be disclosed on thewebsite of the company. The same is disclosed on company's website. In additionIndependent Directors were nominated to attend the trainings programmes organized by SCOPEand DPE.https://www.coalindia.in/DesktopModules/DocumentList/documents/Familiarization_Programmes_imparted_to_Independent_Directors_for_2017_18_04042018.pdf
46. Sexual Harassment of Women at the Workplace
The company has in Place an Anti-Sexual Harassment Policy in line with the requirementsof The Sexual Harassment of Women at the Workplace (Prevention Prohibition &Redressal) Act 2013. Internal Complaints Committee (ICC) are working at every subsidiaryand office of Coal India Limited to redress complaints regarding sexual harassment. Allwomen employees (permanent contractual temporary trainees) are covered under the saidpolicy.
No sexual harassment complaint was received during the year 2017-18.
47. DIRECTORS' RESPONSIBILITY STATEMENT
In terms of Section 134(3)(c) of the Companies Act 2013 read with the SignificantAccounting Policies at Note-33 and Additional Notes on Accounts at Note-34 forming partof:
1. CIL (Standalone) Accounts
2. CIL (Consolidated) Accounts It is confirmed that:
a) In the preparation of the Annual Accounts the applicable Accounting Standards havebeen followed and that no material departures have been made from the same;
b) The Accounting Policies have been selected and applied consistently and judgementsand estimates made that are reasonable and prudent so as to give a true and fair view ofthe state of affairs of the company at the end of the financial year and profit & lossof the company for that period;
c) Proper and sufficient care have been taken for maintenance of adequate accountingrecords in accordance with the provisions of this Act for safeguarding the assets of theCompany and for preventing and detecting fraud and other irregularities;
d) The Annual Accounts have been prepared on a going concern basis;
e) Internal Financial Controls have been laid down and that such controls are adequateand were operating effectively during the year ended 31st March'2018.
f) Proper systems have been devised to ensure compliance with the provisions of allapplicable laws and such systems were adequate and operating effectively.
For CIL (Consolidared) Accounts such confirmation is based on confirmation obtainedfrom eight Indian subsidiaries of CIL viz: Eastern Coalfields Limited Bharat Coking CoalLimited Central Coalfields Limited (consolidated) Northern Coalfields Limited WesternCoalfields Limited Mahanadi Coalfields Limited (consolidated) South Eastern CoalfieldsLimited (consolidated) and Central Mine Planning & Design Institute Limited. Howeverfor the overseas subsidiary viz. Coal India Africana Limitada which was incorporatedunder Mozambique Commercial Code and for Joint Ventures viz. International Coal VenturesPrivate Limited CIL NTPC Urja Private Limited Hindustan Urvarak & Rasayan Limitedand Talcher Fertilizers Limited where CIL is not the majority shareholder suchconfirmation have not been obtained.
48. ACCOUNTS OF THE SUBSIDIARIES
The statement containing the salient features of the financial statements of acompany's subsidiaries associate companies and joint ventures under the first proviso tosub-section (3) of section 129 of Companies Act 2013 is enclosed as AOC 1 in Annexure 24.In pursuance of Section 136(2) of the Companies Act 2013 the Annual Accounts of thesubsidiary companies shall be made available to the shareholders seeking such information.
49. COST AUDIT
M/s Balwinder Singh & Associates conducted the Cost Audit of your company for theyear 2016-17 and the Cost Audit Report was approved by the Board of Directors in their347st meeting held on 25th Sep 2017. The Cost Audit Report did not contain any adverseobservation/comment or qualification from the Cost Auditor. The above report was filed inXBRL mode with MCA website on 25th September 2017.
M/s Balwinder Singh & Associates were reappointed as Cost auditor for CILStandalone for the year 2017-18. E-form CRA-2 has been filed with MCA portal vide SRNG53909982 dated 25.09.2017.
50. SECRETARIAL AUDIT
In pursuance to Section 204 of Companies Act 2013 company had conducted SecretarialAudit for the year 2017-18 by a practicing Company Secretary M/s Vinod Kothari & CoPractising Company Secretaries. Their appointment was approved in the 356th Board meetingheld on 31st Jan'18. Secretarial Audit Report under Section 204 of CompaniesAct 2013 and the observations of Secretarial Auditor and Management Explanation areenclosed in Annexure 25.
51. RISK MANAGEMENT POLICY
The Board of CIL approved Risk Management Charter and Risk Register to build up astrong Risk Management Culture within CIL in achieving company's goals and objectives. Theentity level Risk Assessment includes:
i) Strategic Risk.
ii) Operational Risk.
iii) Financial Risk.
iv) Compliance Risk.
v) Project Related Risk.
vi) Support System Risk.
As per the Risk Register different risks were identified for CIL and its Subsidiariesand Risk Owner and Risk Mitigation Plan Owner were nominated for each risk identified toensure continuous monitoring and mitigation thereof.
A Consulting Agency has been engaged for implementing the governance process designedin the Risk Management Framework at CIL and its Subsidiary Companies. The Consultant willcover all aspects and issues regarding Risk Management and ensure achievement of theobjectives of i) Updated Risk Registers for CIL and its Subsidiaries ii) Updated Risk ThatMatters iii) Risk Mitigation Plan and implementation.
The Agency has completed Updated Risk Register Prioritization of Risk Risk thatMatters for all the Subsidiaries of CIL. They had also completed the details of the KeyRisks which are common across the Subsidiaries and specific to one or moreSubsidiaries.Risk Mitigation Plan is under finalization.
The following policies may be accessed on the Company's website as under:-
1. Corporate Social Responsibility Policy: https://www.coalindia.in/DesktopModules/DocumentList/documents/CIL_CSR_Policy_New_Companies_Act_2013_05022016.pdf
2. Vigil Mechanism:https://www.coalindia.in/DesktopModules/DocumentList/documents/Office_Order_No.57_dt_08092011_-_Coal_India_Whistle_Blower_Policy_2011.pdf
3. Policy for determining Material Subsidiary: https://www.coalindia.in/DesktopModules/DocumentList/documents/POLICY_FOR_DETERMINING_MATERIAL_SUBSIDIARIES_21032015.pdf
4. Related Party Transaction Policy: https://www.coalindia.in/DesktopModules/DocumentList/documents/Related_Party_Transaction_Policy'_01122014(1).PDF
5. Policy on determination of Materiality under SEBI(LODR) Regulations 2015 https://www.coalindia.in/DesktopModules/DocumentList/documents/Policy_on_determination_of%20_Materiality_under_SEBI_ LODR_%20Regulations_2015_03042017.PDF
6. Policy on Preservation of documents including Archival Policy under SEBI(LODR)Regulations 2015 https://www.coalindia.in/DesktopModules/DocumentList/documents/Policy_on_Preservation_of_documents_including_Archival_Policy_under_SEBI_LODR_Regulations_2015_17052017.pdf
7. Dividend Distribution Policy under SEBI (LODR) Regulations 2015 https://www.coalindia.in/DesktopModules/DocumentList/documents/Dividend_Distribution_policy_of_Coal_India_Limited_25102017.pdf
53. COMPANY CONFIRMS THE FOLLOWING:-
1. None of the Directors are disqualified for appointment as per Section 164 of theCompanies Act'2013.
2. Company has not issued any Equity shares with differential voting rights SweatEquity shares and ESOP.
3. CIL Shares were issued in IPO in October'2010. Hence Unclaimed IPO RefundUnclaimed Interim Dividend of 2010-11 alongwith the Shares on which dividend have not beenclaimed for Seven consecutive years were transferred to IEPF Authority as stipulated inCompanies Act 2013.
4. No Statutory Secretarial and Cost Auditors had resigned during the year 2017-18.
5. No relative of director was appointed to place of profit.
6. As per Regulation 32(4) of SEBI (Listing Obligations and Disclosure Requirement)Regulations 2015 deviation of Proceeds of Public issue is not applicable to the company.
7. There is no deposit covered under Chapter V of Companies Act 2013.
8. There is no deposit which is not under compliance of Chapter V of Companies Act2013.
9. There is no change in the nature of business.
10. No Director is in receipt of any commission from the subsidiary companies in whichhe is a director.
11. Applicable Secretarial Standards i.e. SS-1 and SS-2 relating to Meetings ofthe Board of Directors' and General Meetings' respectively have been duly followedby the Company.
54. ADDITIONAL INFORMATION
1. Details in respect of frauds reported by Auditors under section 143(12) otherthan those which are reportable to the Central Government. :
No such reported frauds as per Audit Report of Standalone as well as ConsolidatedAccounts.
2. Material changes and commitments if any affecting the financial position of thecompany which have occurred between the end of the FY and the date of the report :
No such material changes and commitments occurred between the end of the FY and thedate of the report which may affect the Standalone as well as consolidated financialposition of the company.
3. The names of companies which have become or ceased to be its subsidiaries jointventures or associate companies during the year.
During the financial year no subsidiaries Joint Ventures or associates have become orceased to be subsidiaries/Joint Ventures or associates.
The Board of Directors of your Company wishes to record their deep sense ofappreciation for the sincere efforts put in by the employees of the Company and TradeUnions. Your Directors also gratefully acknowledges the co-operation support and guidanceextended to the Company by various Ministries of the Government of India in general andMinistry of Coal in particular besides the State Governments. Your Directors alsoacknowledge with thanks the assistance and guidance rendered by Statutory Auditors theComptroller and Auditor General of India and Registrar of Companies West BengalSecretarial Auditor and Cost Auditor and wishes to place on record their sincere thanks toConsumers for their continued patronage.
The following are annexed:-
i) Pre-tax Profit of CIL & subsidiaries for 2017-18 vis--vis 2016-17 (Annexure1).
ii) Pre-tax Profit of CIL & subsidiaries without considering the impact of payrevision and impact of increase in Gratuity Ceiling Limit for 2017-18 vis--vis 2016-17 (Annexure1A).
iii) Subsidiary wise details of Dividend income of CIL Standalone (Annexure 2).
iv) The comments of the Comptroller and Auditor General of India on StandaloneFinancial Statements of Coal India Limited (Annexure 3).
v) Auditors Report on the Standalone Financial Statements for the year ended 31stMarch 2018 including Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act") [Annexure3(A)].
vi) The comments of the Comptroller and Auditor General of India on ConsolidatedFinancial Statements of Coal India Limited (Annexure 4).
vii) Auditors Report on the Consolidated Financial Statements for the year ended 31stMarch 2018 including Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act") [Annexure4(A)].
viii) Observations of Auditor on Standalone Financial Statements and ManagementExplanation. (Annexure 5)
ix) Observations of Auditors on Consolidated Financial Statements and ManagementExplanation [Annexure 5(A)].
x) Subsidiary wise Coal Off-take. (Annexure 6)
xi) Sector-wise dispatch of coal & coal products. (Annexure 7)
xii) Dispatches of coal and coal products by various modes. (Annexure 8)
xiii) Wagon Loading Performance in 2017-18. (Annexure 9)
xiv) Subsidiary wise details of Stock of Coal. (Annexure 10)
xv) Subsidiary wise details of Trade Receivables. (Annexure 11)
xvi) Subsidiary-wise payment of Royalty Cess Sales Tax Stowing Excise Duty CentralExcise Duty Clean Energy Cess Entry Tax and Others. (Annexure 12)
xvii) Subsidiary-wise Coking & Non-coking production Production from undergroundand opencast mines. (Annexure 13)
xviii) Subsidiary-wise Washed Coal (Coking) Production. (Annexure 13A)
xix) Subsidiary wise Overburden Removal. (Annexure 13B).
xx) Population of equipment. (Annexure 14)
xxi) Subsidiary wise System Capacity Utilization. (Annexure 15).
xxii) Project Implementation. (Annexure 16).
xxiii) Subsidiary wise details of Capital Expenditure. (Annexure 17)
xxiv) Salient features of continuous and sustained improvement in CIL's safetyperformance. (Annexure 18)
xxv) Subsidiary wise position of manpower and strikes and bandhs. (Annexure 19)
xxvi) Scholarship and Reimbursement of tuition fees and Hostel Charge and Grantssanctions to schools. (Annexure 20)
xxvii) Disclosures under Rule 5(1) of Companies (Appointment and Remuneration ofManagerial Personnel) Rules 2014. (Annexure 21).
xxviii) The extract of the annual return as provided under sub-section (3) of Section92 in Form No. MGT.9 (Annexure 22).
xxix) Loan and Advances Guarantees Investments made by the company under Section186(4) of the Companies Act'2013 (Annexure 23).
xxx) Statement pursuant to first proviso to sub-section (3) of section 129 read withrule 5 of Companies (Accounts) Rules 2014) as on 31st March 2018. (Annexure 24).
xxxi) Secretarial Audit Report under Section 204 of Companies Act 2013 and Observationof Secretarial Auditor & Management Explanation (Annexure 25).
xxxii) Foreign Exchange Earning and Outgo under Rule 8 of Companies (Accounts) Rules2014 (Annexure 26).
xxxiii) Details about Research and Development of the Company (Annexure 27).
xxxiv) Disclosure as per Section 135 of Companies Act 2013 on Corporate SocialResponsibility (Annexure 28).
xxxv) Significant and Material Orders passed by the Regulators or Courts. (Annexure29).
xxxvi) Corporate Governance Report. (Annexure 30)
| ||For and on behalf of the Board of Directors |
| ||sd/- |
| ||A.K.Jha |
|Kolkata 7th August 2018 ||Chairman |
| ||(DIN-06645361) |