COAL INDIA LIMITED
ANNUAL REPORT 2007-2008
DIRECTOR'S REPORT
To
The Members
Coal India Limited
Gentlemen,
On behalf of the Board of Directors, I have great pleasure in presenting to
you, the Thirty-fifth Annual Report of Coal India Limited and Audited
Accounts for the year ended 31st March, 2008 together with the reports of
the Statutory Auditors and the Comptroller and Auditor General of India
thereon.
During the year the Company continued to have eight fully owned Subsidiary
Companies viz.: Eastern Coalfields Limited (ECL), Bharat Coking Coal
Limited (BCCL), Central Coalfields Limited (CCL), Western Coalfields
Limited (WCL), South Eastern Coalfields Limited (SECL), Northern Coalfields
Limited (NCL), Mahanadi Coalfields Limited (MCL) and Central Mine Planning
& Design Institute Limited (CMPDIL).
The mines in Assam i.e. North Eastern Coalfields continue to be managed
directly by Coal India Limited. Similarly, Dankuni Coal Complex also
continues to be on lease with South Eastern Coalfields Ltd. during the year
under review.
Highlights of performance:
The highlights of performance of Coal India Limited including its
Subsidiaries in the year 2007-08 compared to previous two years are shown
in the table below:
2007-08 2006-07 2005-06
Production (in million tonnes) 379.46 360.91 343.39
Off-take of Coal
(in million tonnes) 375.33 351.14 333.66
Sales (Gross) (Rs./Crores) 38865.70 35129.16 33,997.19
Gross Profit (Rs./Crores) 8888.39 8687.38 8879.38
Capital Employed (Rs./Crores) 17108.21 16223.74 12741.00
Net Worth (Rs./Crores) 19342.37 17889.30 14114.82
Profit before Tax (Rs./Crores) 8738.46 8602.46 8788.48
Profit after Tax (Rs./Crores) 5243.27 5708.73 5891.52
Gross Profit to Capital
employed 51.95% 53.55% 69.69%
Profit before Tax to Net Worth 45.18% 48.09% 62.26%
Coal Stock (Net) (in terms
of No. of months Net Sales) 0.88 0.88 0.79
Sundry Debtors (Net) (in
terms of No. of months
Gross Sales) 0.45 1.05 0.60
(The above financial position has been prepared as per the Consolidated
Accounts (Accounting Standard (AS)-21). Since, non-recognition of interest
etc. in Holding Company's Accounts, from one of its subsidiaries (as per
Accounting Standard-9) has been ignored in such consolidation (to comply
with provisions of AS-21), the profit as well as related corresponding
figures shown above may be read with such deviation.)
2. FINANCIAL PERFORMANCE:
2.1 Financial Results:
CIL and its Subsidiaries have achieved collectively a pre-tax profit of
Rs.8738.46 crores in the year 2007-08 against a pre-tax profit of
Rs.8602.46 crores in the year 2006-07.
Company-wise position with regard to profit (+) earned or loss (-) incurred
during the year under review vis-a-vis in 2006-07 are given in the table
appended below:
Figures in Crores
Company 2007-08 2006-07
Profit(+)/Loss(-) Profit(+)/Loss(-)
ECL (-) 1026.66 (+) 118.12
BCCL (+) 97.05 (+) 52.30
CCL (+) 1035.25 (+) 1020.30
NCL (+) 2763.75 (+) 2177.61
WCL (+) 930.22 (+) 1054.44
SECL (+) 2067.37 (+) 1777.83
MCL (+) 2504.79 (+) 2081.39
CMPDIL (+) 5.00 (+) 4.47
CIL/NEC. (+) 2642.58 (+) 2864.84
Sub-Total (+) 11019.35 (+) 11151.30
Less: Dividend from subsidiaries (-) 2378.27 (-) 2629.08
Total (+) 8641.08 (+) 8522.22
Adjustment for deferred Revenue
income(*) (+) 97.38 (+) 80.24
Overall Profit as per
Consolidation of Accounts (+) 8738.46 (+) 8602.46
(*) Recognition of revenue in respect of interest claim and apex charges
attributable to BCCL in years' account have been deferred by CIL in
consistence with the provision of AS-9 of ICAI of Revenue Recognition.
Note: Profit for 2007-08 are after taking into account the impact of
Rs.1561.21crores on account of 15% hike in Basic and Dearness Allowance for
NCWA-VIII for the period from 1.7.2006 to 31.3.2008.
2.2 Dividend Income and Pay Outs:
Dividend income of CIL accounted for during the year under review, based on
the recommendations from five profit making subsidiaries namely, CCL, NCL,
WCL, SECL and MCL was Rs. 2378.27 crores as against dividend of Rs. 2629.08
crores in previous year, the Subsidiary-wise break-up of which are as
under:
Name of the Subsidiary Rs. in crores
CCL 244.40
(291.40)
NCL 776.59
(563.39)
WCL 296.00
(388.76)
SECL 510.78
(566.53)
MCL 550.50
(819.00)
Figures in brackets are for previous year.
Your Directors recommended dividend payment of Rs.1705.42 crores @ Rs.270/-
per share on 63163644 Equity Shares of Rs. 1000/- each fully paid valued at
Rs. 6316.36 crores and payment of tax as applicable thereon.
3. Coal Marketing:
3.1(a) Sector-wise Off-take of Raw Coal:
Due to better availability of coal and various marketing strategies adopted
in current fiscal, total off-take of raw coal had improved to 375.33
million tonnes from 351.14 million tonnes clocked in last year - up by
6.89%. Off-take for the year had been 97.3% of annual target.
Meterialization could have been even better but for limited indigenous
coking coal availability resulting in less dispatch of coal to integrated
steel plant, less acceptance of coal by Fertilizer plants. Mismatch in
rolling stock availability in comparison to rate of production during peak
production months affected off-take and despatch to various sectors. The
had resulted in accumulation in pithead stock at the end of the year.
Sector-wise break-up of off-take for 2007-08 against target and last year's
actual is given below:
(Figs. in million tonnes)
Sector 2007-08 2006-07 Growth
over last year
Target off-take % Satn. Actual Abs. %
Power (Util) 279.40 280.15 100.27 262.14 18.01 6.87
Raw Coal*
Steel** 11.78 10.01 84.97 9.85 0.16 1.62
Cement 10.95 9.45 86.30 9.36 0.09 0.96
Fertilizer 2.65 2.47 93.21 2.44 0.03 1.23
Export 0.02 0.01 50.00 0 0.01 -
BRK/Others 80.16 72.48 93.42 66.51 5.97 8.98
Colliery
Consumption 0.94 0.76 80.85 0.84 -0.08 -9.52
Total Off-take 385.90 375.33 97.26 351.14 24.19 6.89
* :includes coking and non-coking coal feed to washery and Bina Deshaling
Plant for beneficiation.
** :includes coking coal feed to washeries, direct feed, blendable to steel
plants, coke ovens, private cokeries and NLW coal to cokeries.
3.1(b) Company-wise Raw Coal Off-take:
Company-wise target vis-a-vis actual off-take for 2007-08 and 2006-07 are
shown below:
Figures in Million Tonnes
2007-08 2006-07 Growth over
last year
Company Target Achieved % Achieved Absolute %
Achieved
ECL 33.41 25.44 76.14 29.79 -4.35 -14.60
BCCL 26.00 24.09 92.65 24.10 -0.01 -0.04
CCL 44.00 42.04 95.55 38.68 3.36 8.69
NCL 58.00 59.02 101.76 52.62 6.4 12.16
WCL 42.94 44.90 104.56 42.17 2.73 6.47
SECL 91.50 95.00 103.83 86.17 8.83 10.25
MCL 88.00 83.64 95.05 76.43 7.21 9.43
NEC 2.05 1.20 58.54 1.18 0.02 1.69
CIL as
a whole 385.90 375.33 97.26 351.14 24.19 6.89
Barring ECL and BCCL, all other coal companies have shown positive growth
in off-take during 2007-08. In case of NCL, WCL and SECL, off-take even
surpassed the target. In case of ECL, off-take has been less mainly due to
shortfall in targeted production by about 9 mill tonne because of land
acquisition problem at Rajmahal and delay in executing new outsourcing
patches. However, off-take exceeded production resulting in depletion in
stock by about 1 mill tonne. Similarly, in case of NEC also, less
production by about 1 mill tonne compared to target reduced the chances of
better off-take despite same being more than production. Frequent
obstruction of transportation of coal to the siding by villagers on local
issues coupled with political unrest affected off-take both at MCL and CCL.
3.2 Despatches of Coal and Coal Products by various modes:
Despatches of coal and coal products during 2007-08 were 371.90 mt, an
increase of 6.93% over last year when despatch was 347.80 mt. Despatches of
coal and coal products by various modes for the year 2007-08 together with
2006-07are given below:
Figures in Million Tonnes
Year Rail Road MGR Belt Rope Overall
2007-08 204.84 72.87 81.02 7.36 5.81 371.90
2006-07 195.63 60.38 78.82 7.14 5.83 347.80
Increase/
Decrease 9.21 12.49 2.20 0.22 -0.02 24.10
Growth % 4.71 20.69 2.79 3.08 -0.34 6.93
3.3 Wagon Loading:
Wagon loading registered a growth of 2.23% to 22417 wagons per day during
the year against 21928 wagons/day in 2006-07. However, in terms of actual
haulage, growth achieved during the year had been 4.7%. Company-wise target
vis-a-vis loading in 2007-08 and performance of 2006-07 is given below:
Figures in FWWs/Day
Company 2007-08 2006-07 Growth over
last year
Target Achieved % Achieved Absolute %age
Achieved
ECL 1870 1627 87.01 2005 -378 -18.85
BCCL 2482 2389 96.25 2407 -18 -0.75
CCL 3828 3717 97.10 3402 315 9.26
NCL 1477 1792 121.33 1469 323 21.99
WCL 2378 2489 104.67 2557 -68 -2.66
SECL 4603 4719 102.52 4631 88 1.90
MCL 6046 5563 92.01 5342 221 4.14
NEC 199 121 60.80 115 6 5.22
CIL 22883 22417 97.96 21928 489 2.23
3.4 Consumer satisfaction:
i) Coal India Ltd. and its subsidiaries are meeting the burgeoning demand
of coal attuned to GDP and Industrial growth. It has attained the
production level of 379.46 MT in 2007-08, which is to go up to 405.0 MT
during 2008-09. The corresponding raw coal off take is required to increase
to 405.0 MT from a level of 375.33 Mt. Even with inadequate infrastructure
for faster coal evacuation, CIL has so far been able to fulfill its
commitments as no thermal plant has ever suffered generation loss due to
short supply of coal of desired quality. Thermal power plants account for
74.79% of total despatch of CIL.
ii) CIL has adopted various measures to ensure supply of assured quality of
coal to consumers. Quality Management starts right at the coalface so as to
improve upon over all quality of coal despatches. Attempts have also been
made to improve upon crushing, handling, loading & transport system.
iii) CIL has built up coal handling plants capacity of about 259.77 MT per
annum so as to maximise despatches of crushed/sized coal to the consumers.
In addition, the washeries at BCCL, CCL, WCL & NCL have adequate
crushing/sizing facilities to the tune of about 39.4 million tonnes in
their system for generation of different washery products. Further, MCL has
successfully introduced the system of size-reduction of coal to (-) 100 mm
and other coal companies have also planned to crush/size coal to (-) 100 mm
in phases.
iv) However, complaints are received from various power houses mainly on
account of supply of oversized coal and presence of extraneous materials
leading to, as reported, various breakdowns in the unloading and coal
handling system at the power stations end. The problem caused by such
eventuality is of major concern for the power stations. The issue needs to
be addressed for which it is essential that an overall performance of 100%
sizing be achieved during the current financial year i.e. 2008-09. The
companies, which need to take action on priority, are ECL, BCCL, CCL and
SECL where complaints are frequently received regarding oversized coal and
extraneous materials.
v) Measures like picking of shale/stone, selective mining by conventional
mode as well as by surface miners, adopting proper blasting
procedure/technique for reducing the possibility of admixture of coal with
over-burden materials, improved fragmentation of coal etc. are being taken
for improving coal quality.
vi) Surface Miners for selective mining at some of the mines have been
deployed by CIL to improve quality of coal mined. Action is being taken for
deployment of more surface miners in other mines where Geo-mining condition
permits. Already 32 nos. of Surface Miners have been deployed in MCL,CCL &
SECL at open cast mines and are working satisfactorily.
vii) Engagement of independent 3rd party sampling agencies and adoption of
joint sampling system are already in vogue for major consuming sectors e.g.
power (utilities as well as captive), steel, cement, sponge iron taking
more than 90% coal of total production from coal companies. On overall
basis, core sector and major non-core sector consumers (having minimum
commitment of 0.4 MTPA and having FSA) have been covered to the extent of
99.25% of total despatches eligible for sampling, out of which about 70.00%
is covered under joint sampling arrangement and about 30.00% under 3rd
party sampling arrangement. The achievement of grade conformity in respect
of 3rd party and joint sampling has been to the tune of 86.3% & 92.20%
respectively in respect of supplies to power sector during 2007-08.
Consumers, covered under agreed sampling arrangement, are required to pay
as per the analysed grade of coal. This system is working satisfactorily.
viii) Electronic weighbridges with the facility of electronic printout have
been installed at rail loading points to ensure that coal despatches are
made only after proper weighment, for this purpose Coal Companies have
installed 169 weighbridges in the Railway Sidings and 415 weighbridges for
weighment of trucks. Coal Companies have also taken actions for
installation of standby weighbridges to ensure 100% weighment.
During 2007-08, about 98.41% of coal despatches to power-houses have been
weighed as compared to about 98.15% during the year 2006-07. Sized coal
despatches to powerhouses during 2007-08 had been 97.25% as compared to
about 97.29% during the year 2006-07.
3.5 Steps Taken towards Liberal Marketing of Coal:
After E-Auction scheme was withdrawn from December, 2006, an interim
arrangement was put in place, pending formulation of a new policy by the
Government through a committee under the Chairmanship of Secretary (Coal)
as per order of Apex Court.
As per interim arrangement, during the current year, the sale of coal was
made to different segments of buyers in the following manner:
(a) Linked core sector consumers to continue getting coal in accordance
with linkages/FSAs at the notified prices.
(b) Linked non-core sector consumers as well as Central and State nominated
agencies distributing coal to small and tiny consumers would get coal up to
their Maximum Permissible Quantities (MPQ)/the allotted quantities at 120%
of the notified prices.
(c) E-booking' of coal for any buyer' needing coal either for
selfconsumption or for trading at 130% of the notified prices.
During the intervening period, it was noted that Linked consumers were
reluctant to pay 20% above notified for their supply as other core sector
consumers like sponge iron, paper, aluminum were paying notified prices.
Consumers participating in e-Booking were finding it difficult to bid due
to congestion of server, misuse of IDs by bombarding servers by few buyers.
NCCF/State Agencies were expressing their difficulties to get adequate
buyers with requirement 500 tonne per annum for which they were not drawing
adequate quantity. Further supplying coal at 120% of notified price was
also standing as deterrent.
MOC came out with a policy on 18.10.07 based on recommendation of the
committee, the salient features of which are as under:
* Core-Non Core classification to be done away with New Classification to
be done keeping in view the regulatory provision.
* Defence & Railway to get full requirement at notified price.
* Power (Including CPP) & Fertilizer Sector to get 100% of normative
requirement through FSA at fixed price
* All other to get 75% of normative requirement through FSA.
* Small & Medium Enterprise Sector having requirement up to 4200MT per year
to get coal from Agencies to be nominated by States/Uts. State Nominated
Agencies to sign FSA with coal companies.
* All existing linkage holders required to execute FSA for continuation of
coal supply.
* For new commitments to Power, Cement and Sponge Iron sectors - CIL to
issue LOA after approval of application by the SLC(LT).
* For other sector, CIL will be responsible for issuance of LOA.
* LOA will have validity for 24/12 months for Power/other consumers
respectively.
* LOAs to be converted to enforceable FSAs after completion of stipulated
milestones/conditions within the given time.
* CIL, to meet full domestic requirement of coal under FSA, even by
resorting to import, if feasible.
* Fresh e-auction to introduce for providing source to consumers otherwise
unable to procure from the available institutional mechanism.
* 10% of the annual Qty to be earmarked for e-auction
* Forward e-auction scheme for industrial consumer to be introduced for
ensuring long term requirement.
NCDP was implemented by CIL. E-auction Scheme 2007 for Spot sale was
implemented for Spot sale of coal from November, 2007. During November,
2007 to March, 2008, quantity offered under E-auction was 17.49 million
tonnes against which quantity allocated was 15.57 million tonnes. Forward
scheme for E-auction for supply over a long period has also been finalized
and notified.
FSA was also developed for all existing linked consumers with the
assistance of M/s. CRISIL. - A Business Advisory Group and circulated for
implementation. The same was also placed on the Website. Individual Letters
was also issued by Coal Companies/CIL advising their linked consumers to
execute FSA at the earliest.
LOA's were also developed in consultation with Business Advisory - M/s.
CRISIL. Letters offering LOAs were issued to the units cleared by SLC(LT)
requesting them to deposit commitment guarantee (CG) so that LOAs can be
issued forthwith.
Model LOAs for all the units under SLC(LT) sector were developed and
conveyed to units concerned apart from uploading it on he company's
websites. No of consumers who were issued notices inviting commitment of
bank guarantee works out to 471 (Power utility-32, Cement-44, CPP-165 and
Sponge iron-230)
3.6 Stock of Coal, Coke etc.:
Net adjusted value of the pithead stock of coal and other products at the
close of the year 2007-08 after provision for stock deterioration etc. was
Rs. 2381.24 crores which was equivalent to 0.88 months' value of net sales.
The Company-wise position of stocks held on 31.3.2008 and on 31.3.2007 are
given below:
(Rs. in Crores)
Company Net value of Net value of Stock in terms of No. of
stock as on stock as on months Net sales
31.3.08 31.3.07
As on As on
31.3.08 31.3.07
ECL 209.22 294.95 0.79 1.01
BCCL 483.52 434.04 1.96 1.81
CCL 858.04 682.68 2.36 2.10
NCL 75.65 39.52 0.17 0.10
WCL 231.38 286.28 0.57 0.78
SECL 252.10 240.54 0.42 0.46
MCL 262.16 169.95 0.72 0.55
CIL/NEC 9.17 22.37 0.47 1.10
Total 2381.24 2170.33 0.88 0.88
3.7 Coal Sales Dues:
Net Coal Sales dues outstanding as on 31.3.2008 after providing of
Rs.1191.04 crores (previous year Rs. 1355.16 crores) for bad and doubtful
debts, was Rs. 1456.43 crores (previous year Rs. 1461.85 crores) which is
equivalent to 0.45 months combined gross sales of CIL as a whole (previous
year 0.50 months). Subsidiary-wise break up of coal sale dues outstanding
as on 31.3.2008 as against 31.3.2007 are shown below:
(Rs. in Crores)
Company Coal Sales dues Coal Sales dues
As on 31.3.2008 As on 31.3.2007
Gross Net Gross Net
ECL 450.26 269.84 480.71 266.99
BCCL 310.51 51.44 447.84 86.17
CCL 847.68 541.31 777.19 472.17
NCL 57.08 51.83 63.32 50.53
WCL 325.46 126.02 401.88 238.14
SECL 439.04 276.41 461.99 259.05
MCL 2647.47 139.58 173.30 88.79
CIL/NEC 10.77 0.00 10.78 0.01
Total: 2647.47 1456.43 2817.01 1461.85
3.8 Payment of Royalty, Cess and Sales-tax, Stowing Excise Duty & Entry
Tax.:
During the year 2007-08, CIL and its Subsidiaries paid/adjusted Rs.5999.28
Crores (previous year Rs. 5381.65 crores) towards Royalty, Cess, Sales-tax
and other levies as detailed below:-
Figures in Rs./Crores
2007-08 2006-07
Royalty 3602.23 2935.77
Cess 697.75 812.69
Sales-tax 1287.64 1343.35
Stowing Ex. Duty 375.00 259.66
Entry Tax 36.66 30.18
Total 5999.28 5381.65
4. Coal Production:
4.1 Raw coal production:
Production of raw coal during 2007-08 was 379.46 million tonnes as against
360.91 million tonnes produced in 2006-07. The company-wise production is
given below:
(Figures in million tonnes)
Company Coking Non-coking Total
2007-08 2006-07 2007-08 2006-07 2007-08 2006-07
ECL 0.04 0.08 24.02 30.39 24.06 30.47
BCCL 12.01 11.10 13.21 13.10 25.22 24.20
CCL 13.29 12.17 30.86 29.15 44.15 41.32
NCL - - 59.62 52.16 59.62 52.16
WCL 0.67 0.77 42.84 42.44 43.51 43.21
SECL 0.16 0.16 93.63 88.34 93.79 88.50
MCL - - 88.01 80.00 88.01 80.00
NEC - - 1.10 1.05 1.10 1.05
Total 26.17 24.28 353.29 336.63 379.46 360.91
4.2 Production from underground and open cast mines:
Coal production from underground mines in 2007-08 was 43.54million tonnes
as compared to 43.32 million tonnes produced in 2006-07. Production from
open cast mines during 2007-08 was 88.5% of total coal production. Company-
wise production is as under:
(Figures in Million tonnes)
Company Underground Opencast Total production
production production
2007-08 2006-07 2007-08 2006-07 2007-08 2006-07
ECL 8.32 8.27 15.74 22.20 24.06 30.47
BCCL 4.47 4.90 20.75 19.30 25.22 24.20
CCL 1.83 1.96 42.32 39.36 44.15 41.32
NCL - - 59.62 52.16 59.62 52.16
WCL 9.98 9.91 33.53 33.30 43.51 43.21
SECL 16.73 16.20 77.06 72.30 93.79 88.50
MCL 2.12 1.97 85.89 78.03 88.01 80.00
NEC 0.09 0.11 1.01 0.94 1.10 1.05
Total 43.54 43.32 335.92 317.59 379.46 360.91
4.3 Hard Coke and Washed Coal (Coking) Production:
Subsidiary-wise production of Hard coke and Washed coal (coking) is given
below:-
Figures in lakh tonnes
Company Hard coke Washed coal (Coking)
2007-08 2006-07 2007-08 2006-07
ECL - - - -
BCCL 0.14 0.25 16.62 16.60
CCL - - 18.38 18.25
NCL - - - -
WCL - - 3.31 3.27
SECL - - - -
MCL - - - -
NEC - - - -
Total 0.14 0.25 38.31 38.12
4.4 Overburden Removal:
Overburden removed during 2007-08 was 607.56 million cubic metres as
against 537.65 million cubic metres achieved in 2006-07, recording a growth
of 13.0%.
Company-wise the details of overburden removal are shown below:
(Figures in Million Cu. Mtrs.)
Company 2007-08 2006-07
ECL 39.98 48.78
BCCL 50.61 46.25
CCL 55.21 45.89
NCL 186.25 139.60
WCL 113.89 106.33
SECL 100.64 87.27
MCL 54.56 55.47
NEC 6.42 8.06
Total 607.56 537.65
5. Population of Equipment:
The population of major opencast equipment as on 1.4.2008 and on 1.4.2007
along with their performance status in terms of availability and
utilisation expressed as percentage of CMPDIL norms is tabulated below:
Equipment No. of Equipment Indicated as % of CMPDIL norms
Availability Utilisation
As on As on
1.4.2008 1.4.2007 2007-08 2006-07 2007-08 2006-07
Dragline 41 41 98 100 104 107
Shovel 687 686 90 91 83 84
Dumper 3240 3364 99 100 70 72
Dozer 998 989 92 92 60 61
Drill 670 696 96 96 73 75
(2007-08 has been reported on 330 working days per annum while reporting of
2006-07 was partly on 330 and partly on 300 working days per annum basis.)
6. Capacity Utilisation:
The overall capacity utilisation of CIL as a whole for the year 2007-08 has
been 93.82%. It was 96.97% during 2006-07. Subsidiary-wise details are as
under:
Company 2007-08 2006-07
ECL 72.79 114.40
BCCL 91.42 86.22
CCL 95.70 82.36
NCL 94.89 90.18
WCL 100.50 93.70
SECL 102.14 111.79
MCL 93.14 106.76
NEC 45.16 97.97
CIL (overall) 93.82 96.97
7. Productivity: Output per Manshift (OMS):
Output per manshift (OMS) during 2007-08 improved to 3.79 tonnes from 3.54
tonnes of previous year. Company-wise position is given in the following
table:
(Figures in Tonnes)
Company U/G production OC production Overall
2007-08 2006-07 2007-08 2006-07 2007-08 2006-07
ECL 0.43 0.42 5.04 7.03 1.07 1.34
BCCL 0.42 0.44 3.08 3.07 1.18 1.15
CCL 0.39 0.40 4.66 4.03 3.22 2.81
NCL - - 13.81 10.97 13.81 10.97
WCL 1.11 1.09 4.06 4.07 2.52 2.50
SECL 1.19 1.14 14.30 13.38 4.83 4.53
MCL 1.18 1.16 23.57 23.48 16.19 15.93
NEC 0.20 0.23 8.09 7.42 1.88 1.70
Total 0.73 0.71 8.60 8.00 3.79 3.54
8. Projects:
8.1 Project Formulation:
During the year 2007-08, preparation of project reports for new/expansion/
reorganisation mines for building of additional coal production capacity
was carried out as per prioritisation of coal producing subsidiary
companies of Coal India Ltd. Thrust was given for preparation of reports of
XI Plan Projects.
In addition to above, the following jobs were also undertaken:
* Revision of project reports/cost estimates.
* Feasibility reports for coking/non-coking coal washeries.
* Study on improvement/modernisation of existing BCCL washeries.
* Operational plans for large OC mines.
* Environmental Management Plan (EMP).
* Reports for dealing with fire.
* Detailed design and drawings, NIT, tender scrutiny etc.
* Mine capacity assessment of underground & opencast mines of CIL.
* Various technical studies relating to operation of opencast & underground
mines.
* Performance analysis of HEMM operating in OC mines, Powered Support
Longwall faces and intermediate technology using SDLs and LHDs in CIL
mines.
* Preparation of Global bid documents for introduction of Longwall and
Continuous Miner Technology in underground mines of CIL.
During the year 2007-08, expert consultancy services were also provided by
CMPDIL to the other subsidiary companies of Coal India Ltd. in the field of
Environmental Management and Monitoring, Remote Sensing, Energy Audit
(Diesel & Electrical), Bench marking of Diesel & Electrical Consumption and
Fixation of Diesel & Electrical Consumption Norms of Opencast and
Underground mines, Physico-Mechanical Tests on Rock and Coal samples,
Subsidence Studies, Strata Control, Non-Destructive Testing (NDT),
Controlled Blasting & Vibration Studies and Explosives Utilisation,
Ventilation/Gas Survey of UG mines, Mining Electronics, Petrography and
Cleat Study on coal samples, Coal Core processing & Analysis, Washability
tests, Structural Adequacy Study of CHP, OBR Survey, Normative Cost of sand
stowing etc.
During the year under review, CMPDIL has prepared 264 reports in all, which
include 17 Geological Reports, 30 Project Report/Revised Project Reports,
10 Operation Plans, 146 Other Reports and 61 Environment Management Plans
(including Form-I).
8.2 Project Implementation:
During the year 2007-08, no project costing Rs. 20 crores & above has been
completed.
Status of Ongoing Projects:
Presently, 100mining and 7 non-mining projects, costing Rs. 20 crores &
above, are under implementation. Out of 100 mining projects, 82 are on
schedule and 18 are delayed.
Out of 7 non-mining projects, 3 are on schedule, 4 are delayed.
Reasons of delay:
Mining (18 nos):
Reasons for delay No. of projects
1. Adverse geo-mining condition. 4
2. Project could not be completed due
to less expenditure, as per completion
criteria. 1
3. Land acquisition problems 6
4. Miscellaneous reasons including change
of mining technology. 7
Non-mining (4 nos):
Reasons for delay No. of projects
1. Land acquisition & rehabilitation problems 3
2. Delay in construction of residential houses by
implementing agency 1
8.3 Project Sanctioned (Costing Rs. 20 crores & above):
(a) During 2007-08, the Government sanctioned 1 project:
Cos Sl. No. Name of Projects Type Sanctioned Sanctioned
Capacity Capital
(MTY) (Rs. Crs)
NCL 1 Nigahi Expn. OC 5.00 (Incr) 259.40
(Phase-II)
(15 MTY)
(b) During 2007-08, CIL Board sanctioned 2 mining projects.
Cos Sl. No. Name of Projects Type Sanctioned Sanctioned
Capacity Capital
(MTY) (Rs. Crs)
ECL 1 Chitra East (2.5 MTY) OC 1.30 (Incr) 112.69
CCL 2 Churi-Benti (0.81) UG 0.65 (Incr) 145.44
(c) During 2007-08 Company Boards sanctioned PRS for 12 mining and 1 non-
mining project:
Mining Projects:
Company Name of Project Type Sanctioned Sanctioned
capacity in capital in
mty Rs. Crores.
1. CCL Ashoka Expansion OC 10.00 341.63
2. CCL Noth Urimari OC 3.00 179.87
3. WCL Junad Extension OC 0.60 38.76
4. WCL Bhatadih Expansion OC 0.65 99.68
5. WCL Durgapur Deep Extension OC 2.00 42.98
6. SECL Mahamaya Augmentation UG 0.48 90.48
7. MCL Bhubaneswari Expension OC 20.00 490.10
8. MCL Kaniha Expansion OC 10.00 457.77
9. MCL Samleswari Expansion OC 2.00 (Incr) 87.95
(5 MTY)
10. MCL Balaram Extension OC 8.00 172.08
11. MCL Gopal Prasad OC 15.00 395.87
12. MCL Talabira II & III OC 20.00 447.72
Non-mining Projects:
Company Name of Project Type Sanctioned Sanctioned
capacity in capital in
mty Rs. Crores.
1. MCL Railway Infrastructure - - 465.09
- Gopalpur Track,
Ib Valley
8.4 Revised Project Report/Revised Cost Estimates:
a) RPR/RCEs sanctioned by Government during 2007-08:
No RPR/RCE has been sanctioned by Govt. during 2007-08
b) RPR/RCEs sanctioned by CIL during 2007-08:
No RPR/RCE has been sanctioned by CIL during 2007-08.
c) RPR/RCEs sanctioned by Company Boards during 2007-08:
Company Name of Project Type Sanctioned Sanctioned
capacity in capital in
mty Rs. Crores.
1. SECL Chhal (RPR) OC 3.00 50.38
2. SECL Kanchan (RPR) OC 0.65 26.01
3. SECL Saraipalli (RCE) OC 1.40 42.89
9. Capital Expenditure:
Overall capital expenditure during 2007-08 was Rs. 2033.51 crores as
against Rs.2059.69 crores in previous year, subsidiary-wise details of
which are given below:
Figures in Rs./Crores
Company 2007-08 2006-07
(BE) Actual (BE) Actual
ECL 298.29 161.79 250.00 154.32
BCCL 250.00 133.82 300.00 196.94
CCL 400.00 297.84 465.00 302.86
NCL 400.00 404.71 600.00 352.31
WCL 241.50 176.05 231.50 227.01
SECL 492.35 560.42 750.00 539.16
MCL 350.00 276.16 425.00 266.88
CMPDIL. 10.00 5.83 7.00 3.14
CIL/NEC/Other 30.00 16.89 35.20 17.07
Total: 2472.14 2033.51 3063.70 2059.69
10. Capital Structure:
The authorised share capital of the company as on 31.3.2008 was Rs. 8904.18
crores, distributed between Equity and Non-cumulative redeemable preference
shares as under:
i) 90,41,800 Non-cumulative
10% redeemable preference shares Rs. 904.18 Crores
of Rs. 1000/- each
ii) 8,00,00,000 Equity Shares
of Rs. 1000/- each Rs. 8000.00 Crores
Rs. 8904.18 Crores
The paid-up equity capital as on 31.3.2008 was Rs. 6316.36 crores, all
issued in favour of the Government of India, which includes Rs. 256.93
crores worth of Equity Shares issued towards value of land acquired.
Total investment by the Government of India in CIL and its subsidiaries as
on 31.3.2008 was Rs. 6316.36 crores as against Rs. 6316.36 crores in the
previous year as detailed below:
Rs. in Crores
As on As on
31.3.2008 31.3.2007
Share Capital - Equity 6316.36 6316.36
Loan (including Interest accrued & due) 0.00 0.00
Total: 6316.36 6316.36
11. Borrowings:
Aggregate borrowings of CIL (excluding repayment of Loan to GOI) as
mentioned above has reduced to Rs. 1675.67 Crores in 2007-08 from 1836.06
crores in 2006-07 as detailed below:
(Rs. In crores)
Particulars 2007-08 2006-07
Foreign Loans including deferred credits:
2007-08 2006-07
IBRD/JBIC 1510.83 1646.10 1664.36 1824.95
EDC Canada 137.26 153.99
CME China 16.27 24.86
Deferred Payments 11.11 10.93
Total 1675.67 1836.06
12. Foreign Collaboration:
Coal India is looking for foreign collaboration with a view to:
* Bringing in proven technologies and advanced management skills for
running under-ground (UG) and open-cast (OC) mines and coal preparation.
* Exploration and exploitation of Coal bed methane.
* Locating over-sea countries interested in joint venture in the field of
coal mining with special thrust on coking coal mining.
* Exploring financial assistance for import of equipment and other
investment needs of Coal Industry.
Keeping the above objectives in view, discussions are being held from time
to time with various countries like United Kingdom, Russia, Germany, United
States, China, France, Poland, Australia, Japan etc. to identify the areas
of mutual cooperation for India in general and Coal India Ltd. in
particular.
The important areas identified include modern technologies for mass
production in both under-ground and open-cast mining, dealing with fire and
subsidence, mine safety, coal preparation, extraction of Coal bed Methane,
coal gasification, application of Geographical Information system,
environmental control, overseas ventures in coal mining. Besides the above
emphasis is being given to transfer of modern technologies, and training.
While CIL would endeavor to acquire suitable technology through
international bidding on risk/gain sharing basis, bilateral cooperation may
also be encouraged for locating availability of cost effective and latest
technologies in the aforesaid area, if the technology proves to be
discernibly advantageous. CIL therefore, has been following both these
routes, in its subsidiary companies, albeit in varied measures.
Indo-Russian Collaboration:
The third meeting of Russian Indian Working Group on Metallurgy and Mines
of the Russian - Indian Inter Governmental Commission for Trade, Economic,
Scientific, Technical & Cultural Cooperation was held on 11th & 12th
September 2007 at Moscow. During the meeting the Russian side showed their
interest for participating in tenders for design and construction of coal
mines in India. Russian side informed that they will intimate about the
tenders in Russia to facilitate India to participate in the same. The
Russian side desired that the MOU could be signed between the Russian
company Giproshakht and CMPDIL by the end of 2007. It expected constructive
proposals from CMPDIL with regard to the rate of reimbursement to
specialist. The matter is being looked into.
Indo-China Collaboration:
The 11th meeting was held in April, 2007 to review the progress made and
identify further areas of cooperation. During the meeting the items
discussed were Manufacturing of spare parts in India, Short long-wall
equipment for Balrampur project of SECL, Foreclosure of Deferred Guarantee
payment (DPG) issued by SBI to CMEI&E towards three sets of long - wall
equipment of SECL, Hard Roof Management Techniques for Churcha West Mine of
SECL, Retraining and rehabilitation of mining workers, Resin Capsule
Manufacturing, Technology for deep shaft sinking, Development of Coal Bed
Methane, Underground Coal gasification, Co-operation in capacity building,
Coal Liquefaction, Investment Opportunities, Authentication of the Mining
equipment between the two sides, Seminar on Coal Mining, Coal Mines Safety,
Technology and equipment.
Chinese side presented the new items - Long term visa, OTR Tyres:
The Indian side proposed Feasibility of co-operation in the area of over-
ground Coal gasification, Possibility of setting up of a plant for making
resin capsules and cuttable roof bolts in India, Application of laser
technology in blasting and maintenance of equipment (power and mining),
Cooperation in identification of coal blocks suitable for induction of
long-wall technology, High pressure water jet technology for extinguishing
mine fires and for excavation.
Both sides agreed that the Task Force will meet more frequently in order to
ensure a more coordinated follow up action on decisions taken in the Task
Force and Joint Working Group Meetings.
For OTR tyres, a team of CIL officers visited China and studied the details
of production process and quality control. The Committee that visited China
has submitted their report. Action is being taken in line with the
recommendations of the committee.
Indo-Polish Collaboration:
Consequent to previous discussions, a MOU has been signed giving the
modalities of further discussion on subjects of mutual interest.
MOC, has vide letter dated 28th September, 2006 communicated that a
discussion was held between Hon'ble Minister of Commerce and Industry,
Govt. of India with Hon'ble Minister of Economy, Republic of Poland on 19th
May, 2006.
During the meeting, the Polish Minister (EM) expressed his country's
interest in assisting India in the power sector. He further stated that
coking coal sector in Poland was likely to be opened up by the present
Govt. of Poland. Hon'ble India Minister (CIM) hinted a co-operation in the
areas of working deep mines and coal gasification.
Indo-Australia Collaboration:
The 5th meeting of Indo-Australia joint Working Group on Energy and
Minerals held was held at Canberra, Australia on 2-3 July 2007. In the
protocol signed, under the head Coal, it was reported that Indian Companies
report no significant barrier or constraints to trade and investment in
Australia apart from shortage of skilled labour and some mineral inputs.
Significant impediments remain for trade and investment in India,
particularly high WTO bindings for tariffs on many products, onerous
requirement on foreign companies with existing or former joint ventures in
Indian market, Delays and unpredictable cost due to actions of sub-national
governments and high costs associated with inefficient custom clearance
system. Australia and India agreed to support further work to develop
industry collaboration on mining technology services and equipment and
export opportunities - under the frame work of Australia India Resource
strategy and/or as part of broader Asia Pacific Partnership strategy in
relation to sustainable use of fossil fuels.
CIL's interest for investment in coal business in Australia has been
communicated a number of times to the Australian Federal Government
(through Invest Australia) and State Government of new South Wales and
Queensland. The matter was again raised during the visit of CIL team to
Australia in Feb.'07. The state Government of these two states were
requested to allocate blocks on nomination basis. On this request, the
Department of Geology and Mineral resources of both the States informed
that no coking coal block has been left for allocation. However, there
could be some allocation of non-coking coal blocks, but those too could be
only through competitive bidding. The CIL Team also offered to certain
major Australian Companies, the opportunities for exchanging resources
position in their respective countries. Request has been made to Australian
Government to take up the matter with major Australian coal companies
having metallurgical coal resources and motivate them for alliance with
CIL. CIL is also willing to allow the Australian Coal Companies for Joint
venture opportunities in India in whatever form found mutually suitable.
Indo-Japan Collaboration:
The meeting of India-Japan Energy Dialogue was held on 16th January, 2007.
In the above meeting, CIL suggested the items like Coal Mine Safety, Coal
beneficiation, Coal up gradation for low rank coal, Coal gasification, Coal
liquifaction, CBM/CMM utilization, instrumentation in the areas of
communication, environment monitoring, prediction of strata behavior etc.
for cooperation under proposed Indo-Japan Working Groups and also requested
to apprise of the action taken in this regard.
Japan -India Energy Dialogue working group meeting was held on 28-6-2007 in
a seminar form.
Joint Secretary (Coal), MOC, held a meeting in February, 2008 to consider
the proposals to be taken up in the next Indo-Japan Coal Working Group
Meeting. The issues emerging from this meeting include:
* Feasibility study for applying coal washing technology on Indian coal by
NEDO has been completed. It has been decided to intimate a model project.
* Expansion of training programme by NEDO through launch of small exclusive
module for Indian trainees under Clean Coal Technology project.
* Institutionalization of information exchange on coal mining safety with
specific reference to underground wireless communications, rescue
operations, instrumentation and monitoring systems for mine gases, fires
etc.
These issues would be taken up in the next meeting of Indo-Japan Coal
Group.
Indo South Africa Cooperation:
A working group has been formed for cooperation under the co-chairmanship
of Secretary, Ministry of Coal, from Indian Side and Director General (Coal
& Mines) from South African side. Chairman, CIL and the DGMS are also the
members of the group.
Areas under which discussions are to be taken up in the forthcoming meeting
of the Working Group include Mechanisation of Board and Pillar System of
Mining, Benefaction of coal, Technology for conversion from coal to oil,
Hard roof Management Techniques, Technology for deep shaft sinking,
Development of CBM, Underground coal gasification, Cooperation in capacity
building specially in under ground mines, High pressure water jet
technology for extinguishing mine fires and excavation, Identification of
coal blocks to be worked jointly in Africa & India, Seminar on coal Mining,
coal mines safety, technology & equipment and Improvement of Mine Safety.
Asia pacific partnership:
Seven countries Australia, China, India, Japan, The Republic of Korea,
United States of America and Canada of the Asia Pacific Partnership on
Clean Development and Climate have decided to cooperate in he increased
energy needs and associated challenges, including those related to air
pollution, energy security and greenhouse gas intensities. The Partnership
has established eight task forces in key sectors. Coal Mining Task Force
(CMTF) is one of these Task Forces.
The 3rd CMTF meeting was held in Stamboat Springs, Colorado, USA in June,
2007 to review the progress made against each identified projects. This was
followed by a 3 days workshop on Coal Beneficiation and Waste Coal
management, held at IICM, Ranchi, India. The 4th CMTF meeting was held in
Beijing, China in November, 2007, where apart from review of projects, the
action plan for holding two days CMTF Sustainable Development Workshop on
'Mine Rehabilitation, Closure and Completion' to be held at Kolkata from
18-19th April, 2008 was finalized.
Two R&D projects (i) Development of a Coal Preparation Plant Simulator and
(ii) Cost effective technology for beneficiation and recovery of Fine coal,
under CMTF has been approved by R&D Board of CIL. CMPDIL is the nodal
agency for implementation of these R&D projects.
13. World Bank financed Projects:
The net utilisation of loan as disbursed by IBRD and JBIC is to the tune of
USD 245.73 million and JPY 28,440.82 million respectively, for procurement
of equipment and technical assistance under Coal Sector Rehabilitation
Project (CSRP). The disbursement for funding of procurement by IBRD and
JBIC was completed in December 2003. As such, there was no withdrawal of
loan since January 2004. With the repayment of loan of USD 59.53 million to
IBRD and JPY 9,479.00 million to JBIC till 2007-08, the total CSRP loan as
on 31st March, 2008 stands at USD 186.20 million (equivalent to Rs. 746.86
Crores) to IBRD and JPY 18961.82 million (equivalent to Rs. 763.97 Crores)
to JBIC. Thus, a total amount of Rs. 1,510.83 Crore is lying outstanding
under CSRP Loan as on 31st March 2008.
14. Master Plan for dealing with fire, subsidence & Rehabilitation:
Master Plan for dealing with fire, subsidence & Rehabilitation in the
leasehold area of BCCL and ECL have been prepared by CMPDI in 1999 and
subsequently updated in 2004. MOC in a review has advised to modify the
Master Plan on a total period of 10(ten) years instead of 20 years and that
all the proposed stabilisation sites are to be considered for total
resettlement. Accordingly, the Master Plan has been modified and CIL Board
approved it in Feb'07 and it was sent to MOC. Nodal agencies have already
been formed by the concerned State Government for the resettlement of
people at Ranigunj and Jharia affected areas. These are Asansol Durgapur
Development Authority (ADDA) of West Bengal Government and Jharia
Rehabilitation Development Authority (JRDA) of Jharkhand Government.
The Resettlement & Rehabilitation package for the Raniganj Coalfield areas
have been principally approved by Government of West Bengal in November,
2007. JRDA has proposed for a revised R&R package for Non-BCCL people in a
meeting held on 5.3.2008.
15. Environmental Management:
Environmental Mitigatory measures and corrective actions are being taken
for air, water and noise pollution, effect on hydrology, land and soil etc.
to create environmental friendly mining for sustainable growth. Level of
pollutions are being monitored and kept within the allowable limits. The
mitigatory measures, apart from others include dust suppression in mines
through fixed and mobile water sprinklers, Oil and Grease Traps in the
workshops, Sedimentation ponds for mine discharges, Effluent Treatment
Plants (ETPs) for workshops/CHPs/washeries, Domestic Effluent Treatment
Plants (DEPTs) to deal with the domestic effluents etc.
Technical and Biological reclamation of the mined out areas and the
external overburden dumps is a major environmental mitigatory measures
taken up by Coal India.
Reclamation of the mined out areas by dumping fly ash from nearby power
plants into mine voids is also a significant step taken by CIL. Action plan
for monitoring of mine closure and land use pattern, for OC project and
major coalfields by remote sensing application has been taken up by CIL.
In addition to the above, steps have been taken to prepare EMPs of all new
projects basd on the highest level of production achievable from that
project. Also for small projects of such mines with mining lease boundaries
lying in close vicinity, steps have been taken to develop common EMPs for a
block/cluster of projects.
16. Coal Bed Methane (CBM) /Coal Mine Methane (CMM) and Underground Coal
Gasification (UCG).:
16.1 UNDP/Global Environment Facility (GEF) - GOI Project - Coalbed Methane
Recovery and Commercial Utilisation:
A demonstration project named 'Coalbed Methane Recovery and Commercial
utilisation' has been taken up by the Government of India in collaboration
with United Nations Development Programme (UNDP)/Global Environment
Facility (GEF) at Moonidih and Sudamdih Mines of Bharat Coking Coal Limited
in Jharia coalfield. The project document was prepared by expert engaged by
UNDP. The project was sanctioned at an estimated cost of Rs. 76.85 crores
(USD 18.082 million) by Govt. of India in September, 1999 with the project
duration of 5 years. Ministry of Coal approved the Revised Cost Estimate
(RCE) June'2004 in August, 2006 for Rs. 92.427 crores with the completion
schedule December, 2007. Central Mine Planning & Design Institute Limited
(CMPDI) and Bharat Coking Coal Limited (BCCL) are the implementing agencies
on behalf of GOI.
During the year 2007-08, following activities have been undertaken or are
in progress:
i) Time Extension:
Status of field activities was reviewed in the 9th National Steering
Committee (NSC) meeting held on 29th November'07, wherein it was agreed to
extend the project up to December '08 in its existing form, and thereafter
it shall remain a Govt. of India S&T Project for completion of remaining
objectives. Ministry of Finance, Department of Economics Affairs issued its
no objection' to the extension of the project till December, 2008. In the
2nd Technical sub committee of SSRC, it was agreed to extend the project
duration by two years i.e. upto December, 2009 as recommended by the NSC.
ii) International CBM recovery Equipment procurement under UNIDO:
All the major equipment packages for surface drilling under procurement by
UNIDO have arrived. The major equipment packages for underground drilling
have been ordered. Horizontal Beam Based Long hole Drill has been
delivered. Steering Tool for underground drill unit was ordered in July '07
by UNIDO and is under testing by the manufacturer before shipment to site.
iii) Laboratory Equipment under procurement by CIMFR:
Three laboratory equipment viz. Field Desorption Apparatus, Gas
Chromatography System upgrade and the Mobile Field Desorption Laboratory on
the chassis, procured at the project cost, have been installed and
commissioned at CIMFR. Procurement of 4th Lab equipment i.e. Absorption
Isotherm Apparatus (New) is in the process of procurement by CIMFR.
iv) CBM Utilisation equipment:
To demonstrate the utilisation through recovered CBM/CMM, 1 MW (250KW x 4)
CBM gas-based Power Generating equipment at Moonidih mine, have been
delivered. Installation is being taken-up. Compressor and Fuelling Station
Unit were ordered by CMPDIL in July'07. Pre-despatch inspection at
supplier's end of Gas Compression and re-fuelling station was completed in
February'08 and unit has arrived at site in March'08. Procurement of
Conversion Kits for mine trucks/tippers is under tendering.
v) Site activities at Moonidih:
Two vertical CBM wells drilled down to depth of 1059m & 1071m and developed
for production well with 5-1/2' casing. Hermetical test with 4500 psi has
been completed for both drilled CBM wells in October'07. Geo-physical
Logging & Perforation have been completed. Hydrofracturing jobs in three
potential coal zones in both the drilled wells have been completed.
Cleaning of sand by circulation completed in CBM 10 well and in CBM 4, sand
cleaning by BCCL work-over Rig is in progress.
PC Pump installation and commissioning was undertaken by supplier in
November, 2007 in the 2nd well. Testing of PC pump commenced on 3rd March
2008. Civil work for 3rd CBM well site has been completed.
Gas Pipe Line laying to connect two vertical wells and gas collection
center has been completed at Moonidih. Foundation for Gas generator sets
and Gas Gathering Centre completed.
Demonstration of power generation will be conducted on receipt of Moonidih
Mine CBM Fuel Gas Control Unit (Package 6A-part) which has been ordered by
UNIDO and is expected to be delivered in April '08.
vi) Field activities at Sudamdih:
For functionality test, one underground drainage hole of 86m at an angle of
35x and second hole of 114m at an angle of 30x from same point was drilled
with Beam Based Long Hole Drill (Underground) in seam XV at Sudamdih Shaft
mine. Both the drilled holes were plugged with safety valve which is
judiciously opened in every shift to drain out the gas from these holes by
Sudamdih mine personnel.
Underground drilling will commence after receipt of Steering tool (Package
4B). On receipt of Steering Tool and DGMS permission, Drilling Expert and
DBT Engineers and IDS Engineer will be organizing training for project
personnel to undertake underground drilling and training.
Gas pipeline laying on surface has been completed. After obtaining DGMS
permission for use of Fusion machine underground, underground pipeline
laying will be undertaken. HDPE pipes shifted in underground to connect
underground will to Gas collection center for demonstration of CBM gas as
fuel in converted mine trucks. Pre-despatch inspection of Gas Compression
and re-fuelling station completed in February'08 and the unit has arrived
at site in March 2008.
The required equipment Package 6A for CMM/CBM Fuel Gas Control Unit for
Sudamdih to recover gas from underground & surface and CMM Fuel Gas Control
Unit for Moonidih to recover gas from underground mine is being re-tendered
by UNIDO.
16.2 Collaborative development of CBM prospects in Jharia and Raniganj
Coalfields by the consortium of CIL and ONGC.:
In terms of Govt. of India CBM policy, consortium of CIL and ONGC has been
allotted 2 blocks - one each in Raniganj and Jharia Coalfields for
development of coal bed methane. In this project, CMPDI is the implementing
agency on behalf of CIL.
16.3 Jharia CBM Block: The Govt. of Jharkhand granted Petroleum Exploration
License (PEL) to the consortium in August 2003 for Jharia CBM block. The
drilling of slimholes commenced on 30th December 2004 and all the 8
slimholes were completed in July 2006 involving 8703.65m of drilling. CBM
related tests were carried out by CIMFR while other chemical and geo-
engineering tests were carried out at CMPDI laboratory. Petrophysical
studies were carried out at the laboratory of IRS(ONGC), Ahmedabad.
A report based on slimhole drilling carried out by CMPDI and other drilling
data of ONGC and CBM/other test results has been prepared and submitted to
ONGC in February, 2008. ONGC took up exploratory and horizontal
multilateral in-seam drilling in the block in association with CMPDI.
16.4 Raniganj CBM Block: The Govt. of West Bengal granted Petroleum
Exploration License (PEL) for Raniganj CBM block on 9.6.2004. The drilling
of slimholes commenced on 23rd March, 2006 and all the 8 slimholes have
been completed in November, 2007 involving 7853.50m of drilling. A total of
2479.00m has been drilled in the block during 2007-08. The samples
grenerated in the slimholes have been sent to labs of CIMFR for generation
of CBM specific data and CMPDI labs for chemical and Geoengineering data.
Work has been taken up for preparation of report based on slimhole drilling
and other available data. ONGC has taken up drilling of exploratory well in
the block in association with CMPDI.
16.5 CBM Related Studies under promotional Exploration during X Plan.:
A Project proposal for taking up Assessment of Coalbed Methane Gas-in-
Place Resource' through boreholes being drilled under promotional
exploration during XI Plan Period being funded by Govt. of India with a
total plan expenditure of Rs. 8.59 crores has been submitted. A total of 50
boreholes (30 by CMPDI and 20 by GSI) are proposed to be taken up for
studies.
During 2007-08, 6 boreholes located in different coal/lignite fields were
taken up for studies and samples collected for desorption and other tests.
16.6 Preparation of CBM Data Package for Directorate General of
Hydrocarbons (DGH):
Directorate General of Hydrocarbons (DGH) has awarded the work of
Preparation of data dossiers on 8 prospective CBM blocks for 4th round of
Global bidding' to CMPDI in March, 2008 at a cost of Rs. 3.91 crore. The
work for preparation of data dossiers has been taken up.
16.7 Project proposal for assessment of CMM potential related to large
Opencast Mines:
Project proposals for assessment of CMM Potential related to large open
cast mines in Moher Sub Basin of NCL. Singaruli Coalfield and Korba
Coalfield have been approved by NCL and SECL respectively. Action has been
taken for generation of CBM specified data through slimhole drilling in
both the coalfields.
16.8 Establishment of CBM/CMM Clearing House in Inida.:
An MOU was signed between ministry of Coal, Govt. of India and united
States Environmental Protection Agency (USEPA) on 16th November'06 for
establishment of CBM/CMM Clearing House in India. The clearing house is to
be established at CMPDI, Ranchi, as per the decision of MOC.
Detailed discussions on modalities of functioning of the clearing house
were taken up with USEPA team, which visited CMPDI, Ranchi from 22.1.08 to
24.1.2008. Follow up actions are being taken.
17. Generation of UCG specific additional data for Kasta Block, Raniganj
Coalfield, initiated after receipt of approval from CIL.:
CIL has entered into an MOU with ONGC to jointly pursue UCG projects. For
selection of suitable block for pilot scale studies, data packages for five
prospective blocks had been prepared by CMPDI and submitted to ONGC. Soviet
consultants appointed by ONGC evaluated the data packages and suggested for
generation of additional data in Kasta Block for further studies. As per
requirement of Soviet consultant, generation of hydro-geological data has
started in Kasta block in December 2007 and work has been taken up for
generation of other additional data.
17.1 Identification of Coal/Lignite Blocks for UCG.:
CMPDI along with GSI, SCCL and NLC has prepared preliminary criteria for
selection of suitable coal reserves for UCG application in line with the
decision taken by MOC. CMPDI has also been entrusted with identification of
suitable coal/lignite blocks in consultation with GSI, SCCL and NLC, which
can be offered for public/private participation for development of UCG.
Five nos. of lignite blocks have been identified for the development of UCG
and communicated to MOC and identification of other UCG blocks in coalfield
areas is under progress.
18. Geological Exploration & Drilling:
CMPDI continued to carry out its coal exploration activities in 2007-08.
The thrust areas, however, were detailed exploration of CIL and non-CIL
blocks. Exploration in CIL blocks was taken up to cater the needs of
project planning/production support of subsidiaries of CIL whereas
exploration in Non-CIL/Captive mining blocks was taken up to facilitate
allotment of coal blocks to prospective entrepreneurs for captive mining. A
nominal amount of Promotional (regional) exploration was also taken up to
identify new coal resources. Ministry of Coal is providing fund for
exploration in Non-CIL and Promotional blocks whereas subsidiaries of CIL
meet expenses of exploration in CIL blocks.
CMPDI deployed its departmental resources for exploration of CIL/ Non-
CIL/Promotional/CBM blocks. Apart from it, services of Directorate of
Geology & Mining of the State Govts. of MP & Orissa and MECL were utilised
for nominal amount of drilling in CIL areas.
In 2007-08, CMPDI and its contractual agencies took up exploratory drilling
in 73 blocks/mines spread over 17 coalfields. These coalfields are Raniganj
(5 blocks/mines), North Karanpura (3), South Karanpura (1), E. Bokaro (2),
W. Bokaro (4), Ramgarh (1), Tawa Valley/Pathakhera (3), Pench Kanhan (7),
Kamptee (2), Wardha (11), Sohagpur (14), Mand Raigarh (1), Korba (4),
Bisrampur (2), Singrauli (4), Talcher (6) and Ib Valley (3). Out of such 73
blocks/mines, 9 were Non-CIL/Captive blocks, 4 Promotional blocks and 60
CIL blocks/mines. Departmental drills of CMPDI took up exploration in 58
blocks/mines whereas drilling in 15 block/mines was undertaken by
contractual agencies.
The overall performance of exploratory drilling by CMPDI and its
contractual agencies in 2007-08 is given below:
Agency Annual Agency-wise Performance of Achieved
Target Exploratory Drilling During 2006-07
2007-08 2007-08 (metre)
BE (metre)
Achieved % +/- (m)
(m) Achieved.
CMPDIL 1,92,000 2,01,850 105 (+)9850 1,98,496
MECL Unscheduled 1,071 - (+)1071 715
State Govts: 5000 6,280 126 (+)1280 6,535
Private Party:
For NE region 3,000 - - (-)3000 -
Total 2,00,000 2,09,201 105 (+)9,201 2,05,746
The departmental drilling of 2,01,850 metre includes 1,53,707 metre in CIL
blocks, 45,151 metre in Non-CIL/Captive Mining Blocks and 2,992 metre in
Promotional blocks. The Directorate of Geology of State Govt. and MECL have
taken up drilling in CIL blocks only.
In 2007-08, CMPDI achieved its departmental and overall drilling target by
105% in each case. The performance of departmental drilling was better than
previous year by 3,354 metre with 1.7% growth. The average productivity of
operational drills of CMPDI was 374m/drill/month for the year. DGM (Govt.
of Chhattisgarh) did not take up the work during the year.
18.1 Geological Reports:
A total of 17 Geological Reports were prepared in 2007-08 on the basis of
detailed exploration conducted in previous years. Out of it, 1 report was
for a Non- CIL/Captive Mining blocks and remaining for CIL blocks.
Out of above 17 GRs, twelve have upgraded 2.51 Billion Tonnes of resources
to proved category besides estimating 0.68 Billion Tonnes in indicated
category. The resources of other 5 reports were largely re-assessment of
earlier GRs of CMPDI.
19. OUTSIDE CONSULTANCY SERVICES:
During the year 2007-08, 38 consultancy jobs were completed for 29
organisations outside CIL. Some of the major clients/organisations for whom
jobs were completed are Steel Authority of India Ltd., Chhattisgarh Mineral
Development Corporation Ltd., Neyveli Lignite Corporation Ltd., National
Thermal Power Corporation Ltd., Central Pollution Control Board, Tata Steel
Ltd., Singareni Collieries Company Ltd., Indian School of Mines etc.
Presently, 23 outside consultancy jobs are in hand for 14 organisations
like Directorate General of Hydrocarbons, Steel Authority of India Ltd.,
Tata Steel Ltd., Neyveli Lignite Corporation Ltd., Chhattisgarh State
Electricity Board. National Aluminium Company Ltd., Haryana Power
Generation Corporation Ltd., HINDALCO, Central Electricity Authority,
Orissa Mining Corporation, Gujarat Mineral development Corporation, Mahaguj
Collieries Ltd., etc.
During the 2007-08, 43 jobs worth Rs. 10.32 crores from 33 organisations
were procured by CMPDI.
20. Research and Development Projects.:
20.1 R&D Projects under S&T Grant of Ministry of Coal:
The R&D activities in Coal sector is administered through an apex body
namely, Standing Scientific Research Committee (SSRC) with Secretary (Coal)
as its Chairman.
The other members of this apex body include Chairman of CIL, CMDs of CMPDI,
SCCL and NLC, Director of concerned CSIR laboratories, representatives of
Department of S&T, Planning Commission and educational institutions, among
others. The main functions of SSRC are to plan, programme, budget and
oversee the implementations of research projects and seek application of
the findings of the R&D work done.
The SSRC is being assisted by a Technical sub-committees headed by CMD,
CMPDI. The committee deals with research proposals related to coal
exploration, mining, mine safety, coal beneficiation & utilization and also
the project proposals on mine environment and reclamation.
CMPDI acts as the Nodal Agency for co-ordination of research activities in
the coal sector, which involves identification of Thrust Areas' for
research activities, identification of agencies, which can take up the
research work in the identified fields, processing the proposals for
Government approval, monitoring the progress of implementation of the
projects, preparation of budget estimates, disbursement of funds etc.
20.2 Physical performance:
During the X Plan Period, a total of 51 projects were completed by various
agencies.
The status of Coal S&T Projects in the XI Plan period is as under:
i) Projects on-going as on 1.4.2007 - 36
ii) Projects sanctioned by GOI during 2007-08 - 09
iii) Projects completed during 2007-08 - 10
iv) Project terminated during 2007-08 - 01
iv) Projects on-going as on 1.4.2008 - 34
Following Coal S&T projects were completed during 2007-08:
i) Optimisation of pillar parameters for development and final extraction
of highly inclined seams at SCCL mines.
ii) Development of support guidelines for depillaring panels in Indian coal
mines.
iii) Effect of production blasts on ground water and geo technical
properties on pit-wall and dump stability in open pit coal mines.
iv) A study on effect of underground blasting on surface structures vis-a-
vis standardization of blast vibration damage threshold.
v) Model studies on the efficiency of gravity blind back filling method and
evaluation of a pre-jamming indication parameters.
vi) Development of process/technique for potential utilization of less
matured non-coking coal for making hard coke by utilizing stamp charging.
vii) Development of a process for the production of activated carbon from
Neyveli Lignite.
viii) Development of cost effective high performance highway using fly ash
composite.
ix) Studies on the impact of atmospheric biotic/abiotic particulates on the
environment of Jharia Coalfield and their abatement strategies.
x) Studies on the use of Bottom slag in corp production.
20.3 Financial Status:
Budget provisions vis-a-vis actual fund disbursement during the period are
given below:
(Rs. in Crores)
2006-07 2007-08
RE Actual RE Actual
6.00 8.09 12.86 12.48
20.4 CIL R&D Projects:
For in-house R&D work of CIL, R&D Board headed by Chairman, CIL is also
functioning. CMPDI acts as the Nodal Agency for co-ordination of research
activities funded by CIL R&D Board. So far, 34 projects have been taken up
under the funds of CIL R&D Board, out of which 22 projects have been
completed.
The status of CIL R&D Board Projects during 2007-08 was as follows:
i) Projects on-going as on 1.4.2007 - 15
ii) Projects Sanctioned during 2007-08 - Nil
iii) Projects completed during 2007-08 - 03
iv) Projects on-going as on 1.4.2008 - 12
The disbursement of fund for R&D jobs during the year 2007-08 was Rs. 11.08
crores.
21. Telecommunication System:
Continued efforts in updating the communication networks and implementation
of various IT solutions are being made by CIL and Subsidiary Companies to
excel in productivity, sales and marketing, management of operation,
utilization of human resources and achieve optimum efficiency in the
backdrop of rapidly changing events of the industry. The following actions
have been undertaken by Telecom Division.
i) Provisioning of High Speed Internet over LAN at CIL(HQ) & CIL(Mkt.) has
already been made and up gradation of LAN is under completion stage. A
centralized mail and messaging system along with proper Network security is
also expected to be commissioned soon.
ii) In order to enhance the operational efficiency of large opencast mines
of the different subsidiaries a GPS based Operator Independent Trunk
Despatch System (OITDS) is going to be implemented with high speed data and
voice connectivity along with GUI display. The scrutiny of the offers has
been carried out and the same is under approval stage.
iii) The Order has been placed for installation of state-of-the-art IP
based EPABX with support of convergent technology (using voice and data
through same backbone) as a replacement of old Hotline exchange at Coal
Bhawan and 15, Part Street office. The system is expected to be instlled
and commissioned shortly. Subsequently it will be extended to Subsidiary
Companies and Areas for convergent Voice, Video and Data application.
iv) M/s. Deloitte has been appointed as a Consultant for formation of IT
policy and drawing up the scheme for a converged IT Network from
Project/Mine up to CIL level with connectivity of public portal. After
getting information from different subsidiary Companies, communication
scheme will be drawn for extending vice facilities and data connectivity in
an integrated manner from Project, Mine, Regional stores, Workshops etc. to
Area office, Subsidiary(HQ), CIL(HQ) and Ministry of Coal.
v) Action has been taken for Hosting of CIL corporate web Portal to
substantially augment its image building endeavor and to bring it to a
level commensurate with size and strategic importance of CIL, emphasizing
its role in energy security of the nation. The web portal is also envisaged
to conduct different business application in line with other Navaratna PSUs
and will be connected with CIL intranet.
22. Mines safety:
22.1 Trend of fatal accidents & fatalities:
CIL has achieved best ever safety performance in the year 2007 both in
terms of numbers of reducing fatalities and fatality rate since its
inception. CIL has also obtained excellent grade on MOU rating on safety as
it has able to reduce Fatality Rate/MT of coal production (Safety Indicator
as per MOU) to 0.15 against target 0.22 and corresponding figure of last
year was 0.30 due to continuous and sustained efforts on safety front.
There was no major fatal accident occurred in the year 2007. However,
number of fatal accidents has slightly increased compared to 2006. The
trend in fatal accidents in last five years in CIL are in declining mode.
The trend of fatal accident in last 5 years in CIL is in declining mode.
The trend of fatal accident in the last five years in CIL is given in Graph
below:
Graph:
22.2 Safety Statistics:
A. Overall accident Statistics for CIL in 2007 compared to 2006 are given
below:
Table - A:
Parameter Year Year
2007 2006
1. Numbers of fatal accidents 55 51
2. Numbers of fatalities 57 106
3. Numbers of serious accidents 326 317
4. Numbers of serious injuries 340 336
5. Fatality rate per m.te. of coal production 0.15 0.30
6. Fatality rate per 3 lakhs manshift deployed 0.18 0.32
7. Serious injury rate per m.te. of coal
production 0.92 0.96
8. Serious injury rate per 3 lakhs manshift
deployed 1.05 1.02
Note: 1. Accident Statistics are maintained calendar year-wise in
conformity with DGMS practice
2. All figures for 2007 and figures for serious accident & serious injuries
in 2006 are subject to reconciliation with DGMS.
B. Company-wise break-up of Accidents:
The Company-wise fatal accidents, fatalities, serious accidents and serious
injuries in 2007 compared to 2006 are also given below:
Table-B:
Company Fatal Accidents & Fatalities Serious Accidents & Injuries
Accidents Fatalities Accidents Serious
Injuries
2007 2006 2007 2006 2007 2006 2007 2006
ECL 7 8 8 13 105 102 115 105
BCCL 10 12 10 61 66 45 66 47
CCL 7 5 8 5 16 19 16 19
NCL 5 4 5 5 10 15 10 15
WCL 12 13 12 13 60 57 61 60
SECL 10 7 10 7 60 68 63 72
MCL 4 2 4 2 9 10 9 17
NEC 0 0 0 0 0 1 0 1
CIL 55 51 57 106 326 317 340 336
Note: All figures for the year 2007and figures for serious accident &
serious injuries in the year 2006 are subject to reconciliation with DGMS.
C. Company-wise Break-up of Fatality & Serious Injuries Rate:
The Company-wise Fatality & Serious Injury Rate in 2007 compared to 2006
are also give below:
Table-C:
Company FATALITY RATES SERIOUS INJURY RATES
Per M. Te. Per 3 lakh Per M. Te. Per 3 lakh
Manshifts Manshifts
2007 2006 2007 2006 2007 2006 2007 2006
ECL 0.32 0.41 0.11 0.17 4.63 3.32 1.54 1.37
BCCL 0.42 2.52 0.19 1.11 2.77 1.94 1.25 0.85
CCL 0.19 0.13 0.20 0.12 0.37 0.51 0.40 0.44
NCL 0.09 0.10 0.36 0.36 0.18 0.29 0.72 1.07
WCL 0.28 0.30 0.21 0.22 1.40 1.38 1.05 1.04
SECL 0.11 0.08 0.15 0.11 0.68 0.84 0.95 1.10
MCL 0.05 0.03 0.28 0.14 0.11 0.22 0.63 1.19
NEC 0.00 0.00 0.00 0.00 0.00 0.81 0.00 0.36
CIL 0.15 0.30 0.18 0.32 0.92 0.96 1.05 1.02
Note: All figures for the year 2007 and figures for serious accident &
serious injuries in the year 2006 are subject to reconciliation with DGMS
22.3 Activities for further improvement in Safety in mines undertaken in
2007.
For further enhancement of safety standard in its mining operations, CIL
has pursued several measures in the year 2007 along with others on-going
safety related activities/initiatives apart from compliance of statutory
requirements for safety which are given below:
Disaster Prevention:
The primary thrust of the Safety Strategy of CIL has been towards averting
accidents with a large number of casualties (accidents involving more than
10 fatalities are termed disasters in Indian mining parlance). Towards this
end, the following activities were taken:
Thrust on measures for prevention of inundation:
* Regular Check Surveys.
* Before monsoon details Action Plan for preventive measures against
inundation were prepared, implemented and monitored.
* Trial of Geo-physical Methods for Detection of waterlogged bodies/proving
partings.
* Use of modern Survey Instrument like Total Station etc.
* Digitization of Mine Plan for enhancing accuracy.
Explosion & Fire:
* Computerized Environmental Tele-monitoring Systems (ETMS) for getting
advance warning on build up of excessive inflammable gases in mine
environment that could lead to outbreak of fire or explosion were installed
in some identified highly gassy or fiery mines.
* Modern Hand-held /Portable Digital Multi-gas Detectors were provided in
mines for monitoring mine environment for early detection of heating /
accumulation of inflammable/noxious gases.
* Introduction of Gas Chromatograph for getting better accuracy in
analyzing mine air samples.
* Initiative has been taken to develop Carbon Nano-Technology (CNT) based
personal gas detector device along with audio-alarm in collaboration with
Jadavpur University.
* Stress was given on retraining of supervisory staffs on operation of
Flame Safety Lamp (FSL) and other digital apparatus being extensively used.
Strata Management:
Roof & Side fall is still one of the major causes of fatal accident and
fatality in underground mines. Thrust on prevention of roof & side fall
accidents was continued.
Main thrust areas are:
* Stress on underground mechanization so as to reduce the exposer of
workers at the active faces.
* Mechanisation of Roof Drilling process for roof bolting purpose.
* Initiatives have been taken to develop device with appropriate audio-
visual alarm to monitor the behaviour of overlying roof strata. One R&D
project for development of indicators for monitoring impending load on roof
has already initiated in collaboration with IIT-Kharagpur.
* Several roof-monitoring devices have been developed at Area/Mine level
workshop and tried to use it in underground mines particularly in SECL.
* Creating awareness through extensive training of support personnel,
dressers and supervisors.
In addition to this the following measures were also taken:
Risk Assessment & Safety Management Plan:
Risk Assessment has been completed in 427 mines and potential dangers
associated in mining activities due to existing geo-mining conditions of
the mine, method of mining being adopted for extraction of coal and from
machineries being engaged for operations have been identified. Time-bound
action programmes to eliminate or to reduce or to avoid the identified
risks for each mine has been chalked out along with review mechanism. It is
an on-going cyclical process.
Safety Audit:
Safety Audit of the mines are being conducted in more meaningful way in two
phases:
a. 1st Phase:
Deficiencies (i.e. unsafe conditions and unsafe acts) are being identified
and remedial measures suggested or recommended.
b. 2nd Phase:
Review the status of implementation of the recommendations/suggestions of
1st phase are being done in 2nd phase and thereafter final report is
submitted.
S&R Division of CIL has conducted several co-ordination meeting at regular
interval where Director (Tech.), CIL, Director (Tech)(Op)s and Chiefs of
ISO of all subsidiaries participated to review the safety status of the
mines and to adopt strategies for enhancing safety standard. Several
initiatives were taken on the basis of the adopted resolutions of those
meetings.
Thrust was given on further activating Pit Safety Committee at mine level
and other Bi-partite & Tripartite Safety Committee at Area and subsidiary
HQ level.
ISO Inspection:
Inspections by the Internal Safety Organisation (ISO) officials were
intensified. This has been resulted positive impact in safety management.
Thrust continued on Emergency preparedness through:
* Preparation of Mine-specific Emergency Action Plans
* Demarcation of Escape Routes belowground as well as on plans.
* Conducting of Mock Rehearsals, monitoring failure points for further
improvement.
* Initiative to introduce the Tracking system to locate the trapped miners
in emergency by various technologies such as RFID Initiative has been taken
to procure training simulator for imparting training to operator/driver of
tippers & dumpers.
23. Mines Rescue Services:
A well equipped Rescue Service Organisations staffed by rescue personnel
trained in modern training galleries and equipped with modern rescue
equipment is maintained by the subsidiary companies of CIL. At present,
there are 6 Rescue Stations, 15 Rescue Room-with- Refresher- Training
facilities and 18 Rescue Rooms in CIL. Company-wise details regarding Mine
Rescue services of CIL have been posted at CIL web-site.
24. HUMAN RESOURCE DEVELOPMENT:
24.1 Overall performance:
31912 employees were trained during 2007-08, out of which 8091 were
executives, 9608 supervisors and 14213 workmen. The performance included
in-house training efforts, external training efforts and training abroad.
The training of supervisors and Workers under 'Statutory obligations' were
taken care of separately.
24.2 In-house training:
The corporate HRD plan for 2007-08 was developed within the framework of
the Strategic HRD plan, by integrating efforts of HRD in all the subsidiary
companies and considering capabilities of twenty-six training Institutes
situated at different locations in Coal India.
In order to formalize Strategic HRD plan, a comprehensive HRD training
policy is being followed. The strategy arising out of HRD policy envisaged
efforts in terms of inputs to technical training, management training,
general development of workmen & supervisors and also transforming new
employees for learning skills.
Total number of employees trained through in-house training efforts during
2007-08 is given below:
Category Employees trained
Executives - 5874
Supervisor - 9279
Workmen* - 14059
Total - 29212
24.3 Training outside company:
i) Within the Country:
In order to expose the employees in specialized fields to receive
interorganisational experience and also supplementing in-house training
efforts, 2588 employees from eight subsidiary companies and CIL/HQ were
trained under the various training programmes conducted outside Company.
The break up of training efforts at different categories of employees is
given below:
Category Employees trained
Executives - 2107
Supervisors - 327
Workmen - 154
Total: 2588
ii) Training abroad:
112 employees were trained abroad from April, 2007 to March, 2008, the
details of which are given below:
Category Employees trained
Executives - 110
Supervisors - 2
Workmen - 0
Total 112
24.4 Additional Information on HRD in CIL during the year 2007-08:
i) The new CIL Training Policy has been prepared.
ii) The Structure of training has been prepared.
iii) In all 11 (executives) from CIL and its Subsidiary companies have
passed the Certification of Project Managers' Course conducted by the
Project Management Association, New Delhi.
iv) Training Module of Newly recruited Management Trainees in CIL has been
prepared.
25. Manpower:
25.1 The total manpower of the company including its subsidiaries as on
31.3.2008 is 426077 as against 439343 as on 31.3.2007. Company-wise
position of manpower is as below:
Company As on Total
ECL 31.3.2008 94943
31.3.2007 98780
BCCL 31.3.2008 80051
31.3.2007 83578
CCL 31.3.2008 58808
31.3.2007 61610
WCL 31.3.2008 64160
31.3.2007 65599
SECL 31.3.2008 82782
31.3.2007 84368
MCL 31.3.2008 20786
31.3.2007 20591
NCL 31.3.2008 16697
31.3.2007 16726
NEC 31.3.2008 3072
31.3.2007 3210
CMPDI 31.3.2008 3048
31.3.2007 3127
DCC 31.3.2008 641
31.3.2007 647
CIL (HQ) 31.3.2008 1089
31.3.2007 1107
CIL as a whole 31.3.2008 426077
31.3.2007 439343
25.2 The presidential directives for Scheduled Castes/Scheduled Tribes/OBC
have been implemented in all the subsidiaries/units of Coal India Limited.
The representation of SC/ST employees in total manpower of CIL and its
Subsidiary Companies as on 1.1.2008 and 1.1.2007 are given below:
As on Total Scheduled Caste Scheduled Tribe
manpower Nos. Percentage Nos. Percentage
1.1.2008 429507 95231 22.17 53065 12.35
1.1.2007 443128 97977 22.11 54456 12.29
25.3 WAGE NEGOTIATIONS:
The Joint Bipartite Committee for the Coal Industry was constituted on
21.5.2007 to negotiate National Coal Wages Agreement-VIII in accordance
with the DPE's guidelines in terms of letter No. 55011-01-2006-PRIW dated
28th February, 2007 and letter No. 55011-1-2006-PRIW dated 14.5.2007 of
Director, Govt. of India, Ministry of Coal, New Delhi. The last wage
agreement i.e. NCWA-VII, was made for a period of 5 year i.e., from
1.7.2001 to 30.6.2006 with 100% neutralization of DA with the approval of
GOI.
The first meeting of JBCCI-VIII was held on 29th June'07 at Kolkata and
subsequently 3 more meetings have been held. Interim relief @ 15% of basic
wages as on 30.6.2006 has been granted to the employees w.e.f. 1.7.2006.
26. Industrial Relations and Employees' Participation in Management:
Industrial Relation scenario in CIL and its subsidiaries during the
financial year remained cordial. Joint Consultative Committees (JCCs) and
different Bipartite Committees at Unit/Area levels and Subsidiary (Hqrs)
levels continued to function normally. Meetings of Standardisation
Committee and Apex JCC were held at regular intervals at CIL.
Strikes and Bundhs:
Company-wise details of strikes, mandays lost and production lost and other
incidents are furnished in the following table:
Company No. of strikes / No. of other
Bundhs Incidents.
2006-07 2007-08 2006-07 2007-08
ECL 0+1(IS) 0+2(BB) 131 83
BCCL 5+1(IS) 0+0(IS) 55 46
CCL 0+1(IS) 0+0(IS) 43 48
WCL 0+1(IS) 1+0(IS) 0 10
SECL 0+1(IS) 1+0(IS) 0 1
NCL 1+1(IS) 0+0(IS) 11 44
MCL 0+1(IS) 0+0(IS) 9 25
NEC 0+1(IS) 0+0(IS) 2 0
CMPDIL 0+1(IS) 0+0(IS) 0 0
CIL 0 0 0 0
Total 6+1(IS) 2+2(BB) 251 257
Company Mandays lost Production lost
(in tonnes)
2006-07 2007-08 2006-07 2007-08
ECL 63251 1400 59000 500
BCCL 7846 0 8470 0
CCL 20527 0 81000 0
WCL 10001 18745 18293 83877
SECL 22512 3678 26595 11100
NCL 1998 0 0 0
MCL 0 0 0 0
NEC 894 0 65 0
CMPDIL 674 0 224.26 0
(Mtg.)
CIL 0 0 0 0
Total 127703 23823 193423+ 95477
224.26
(Mtg)
* IS = Industrial Strike, BB = Bangla Bundh.
* Other incidents: Go-slow, Gherao/Assault/Demonstration/Obstruction for
stoppage of work.
* Mtg = Metreage/Mts.-Meters
* 1(one) Industrial Strike was called on 14.12.2006.
* Two Bangla Bundh were called by political party on 31.10.2007 & 12.11.07
27. Employees' Welfare and Social Security Scheme:
Coal India and its subsidiaries continue to give due attention for the
welfare of its employees with a view to improve their quality of life. Some
of the major achievements relating to welfare of employees of Coal India
Limited are as follows:
a) Hon'ble Minister of Coal declared on CIL Foundation Day a Scheme under
which direct dependent of employees who died or were permanently disabled
in a mine accident are to be paid an amount of Rs. 5 lakhs. This amount is
in addition to the payment made under Workmens' Compensation Act.
b) Coal India Limited has introduced a Scheme under which post retirement
medical benefits have been provided to Executives on payment of a certain
amount.
c) To further increase integration, it has been decided to celebrate 1st
November of every year as CIL Foundation Day. The first CIL Foundation Day
was observed on 1st November 2007 in CIL and all subsidiaries. Awards for
Production, Productivity and Safety were presented to workers of all the
subsidiary companies at a Central Function held at Kolkata. On this
occasion, the CIL Corporate Geet was sung and CIL Flag unfurled all over
the mines and areas of subsidiaries and at CIL(HQ).
d) Meritorious wards of CIL employees were awarded Merit and General
Scholarship. Special Cash Award were presented to the wards of the
employees of CIL(HQ) and Desk Offices of the subsidiaries for the first
time who secured 90% or more in aggregate in 10th and 12th Standard
Examination conducted by the Board.
e) Coal India continues to give special emphasis on promotion of sports and
cultural activities for the employees and their wards. Events in different
sports disciplines were organized by CIL and its subsidiary companies.
Inter colliery and inter area Sports and Cultural Meets were also held in
the Subsidiary Coal Companies.
f) An amount of Rs. 10 crores was approved for the opening of an
Engineering College at Korba in Chhatishgarh as a part of Corporate Social
Responsibility (CSR) activities.
Basic facilities like Housing, Water Supply, Medical Care etc. continued to
be provided. Some Educational Institutions operating in and around coal
companies were given assistance by way of grant-in-aid and infrastructure
support as a part of Welfare and Community Development activities.
Table below shows the position of basic amenities provided:
Item Available at the Additions Position
time of during as on
Nationalisation 2007-08 31.3.2008
1. Housing:
(a) Number of houses: 1,18,366 525 4,13,022
(b) Overall housing
satisfaction 21.07% - 96.93%
2. Water supply
(Population covered) 2,27,300 2,625 22,93,063
3. Educational
Institutions:
a) No. of fully
financed Project
schools (KV., DAV &
other schools) - - 61
b) No. of Project
schools given
infrastructure only - - 26
c) No. of Privately
managed schools
provided recurring
grant - - 290
d) Other educational
Institutions given
grant/occasional help - - 207
Total: 287 - 584
4. Medical facilities:
a) Ambulances 42 - 667
b) Hospitals 49 - 85
c) Hospital beds 1,482 - 5,835
d) Dispensaries 197 - 424
Besides above, 12 Ayurvedic Dispensaries are also being run in the
Subsidiary Coal Companies of CIL to provide indigenous system of treatment
to workers and 15 beds are reserved in Ramkrishna Mission T.B. Sanatorium
at Ranchi for the treatment of employees suffering from T.B.
28. Tree Plantation/Afforestation:
In order to provide better environment, CIL and its Subsidiary Companies
have planted 22.73 Lakhs of seedlings in the Coalfield Areas during the
year 2007-08 under Afforestation programme.
29. Progressive use of Hindi:
Coal India Ltd. continued its efforts to propagate and spread the
progressive use of Hindi during the period under review. Adopting the
Official Language policy of the Union Govt. which is based on motivation
and encouragement, the Coal India is speeding the pace of implementation
among its employees. The top management gives high priority on it. The
abstracts of the important works done toward this direction during the
period from 1.4.2007 to 31.3.2008 are as follows:
The period under reference had witnessed a glittering function held on 10th
July, 2007 at Bengal Chamber of Commerce & Industry Conference Room. All
the eight companies of Coal India Limited situated in A.B.C region were
awarded 'Rajbhasha Samman' Purskar by Hon'ble Chairman, Coal India Limited,
Mr. Partha S Bhattacahryya for their best performance. The occasion was
graced by all the Functional Directors of CIL. The Officers and employees
working in Coal India Limited (HQ), Kolkata were awarded cash prizes for
their best personal efforts in the field of implementation of Rajbhasha,
Hindi in their Official work. This function brought sense of collective
awareness towards Rajbhasha Hindi.
Another feather in the cap during the period under review is that Coal
India bags 'Rajbhsha Shield' award given by Town Official Language
Implementation Committee (PSUs) Kolkata in the area of outstanding
performance towards implementation of Rajbhasha Act, Rules & Regulations
during its half yearly meeting held on 30th August, 2007 at Flotel.
To augment the process of implementation of the provisions of the Official
Languages Act & Rules and to increase the Hindi correspondence in the
departments, regular meeting of Official Language Implementation Committee
is being held under the Chairmanship of Director (P&IR), CIL. Chairman, CIL
is also very much serious to attend the meetings. In such a meeting
organized on 12.12.2007 in Coal Bhawan, Dr. Y. Lakshmi Prasad, Member,
Hindi Salahkar Samiti, Ministry of Coal and Observer (Rajbhasha) for Coal
India Ltd. was also present.
With a view to creat working atmosphere of Hindi in the official works,
Hindi Fortnight starting from 14.9.2007 was celebrated in all offices of
Coal India Ltd. During the Fortnight various Hindi competitions such as
Hindi Noting - Drafting, Hindi Essay, Hindi Dictation, Hindi Translation,
Hindi typing were organized among the employees of Coal India Ltd. A large
number of officer and staff participated in the competition
enthusiastically.
Hindi inspection of the offices is also a part of implementation programme.
During the period under review, offices of 4 subsidiary companies were
inspected by CGM(Rajbhasha) & Rajbhasha Department Officials. Apart from
this, a high power parliamentary committee on Rajbhasha inspected NEC
office situated at Margherita, Desk office ECL, Kolkata, Regional Sales
Office, Ahmedabad and Mahanadi Coalfields Ltd., Sambalpur. In order to
train the Officers & Staff of CIL in Official Language who have working
knowledge of Hindi, three Hindi workshops were organized by he Department
during the year under review where 37 persons were trained.
30. Vigilance:
30.1 Vigilance Set-up:
Coal India Limited (CIL) is the holding company of 8 (eight) Subsidiary
Companies spread over the State of Wet Bengal, Jharkhand, Orissa, Madhya
Pradesh, Chattisgarh and Maharastra. Each subsidiary company is headed by
Chairman-cum-Managing Director, assisted by Functional Directors. CIL acts
as an Apex Body and holding company, which takes care of inter-company
affairs and policy decisions across the subsidiary companies according to
the Delegation of Powers vested with the holding company.
The anti-corruption activities in CIL and its subsidiary companies have
been institutionalized by setting up Vigilance Department in the subsidiary
companies each of which is headed by a Chief Vigilance Officer (CVO),
appointed by the Govt. of India in consultation with Central Vigilance
Commission (CVC) on tenure basis, drawn from various government services.
CVO, CIL apart from monitoring vigilance activities of departments and
offices under direct control of CIL and North Eastern Coalfields (NEC) also
enquires into/monitors such cases referred by the CVC/MOC to CIL Vigilance.
He also investigates specific complaints against officials of subsidiary
coal companies specifically referred by Chairman, CIL to CIL Vigilance or
on the basis of complaints or source information received directly at CIL
Vigilance. Some co-ordination with the subsidiary coal companies is
effected informally since CIL Vigilance Division has to liaise with
institutions like CVC, MOC, CBI as also in view of the fact that CMD, CIL
is the Appointing/Disciplinary/Appellate Authority in case of executive
cadre employees and CVO, CIL is required to act as an advisor whenever CMD,
CIL has to discharge his authority in one of the above mentioned capacity
vis-a-vis a vigilance matter.
Any interface therefore, is maintained with the Vigilance Division of the
different subsidiary companies and their CMDs. It may be mentioned that
formal CVO, CIL does not exercise superintendence or control over the CVOs
or the vigilance set up in the different subsidiary companies.
One of the major tasks is to report the vigilance status of different
officials when required by CIL management or MOC or CVC or PESB. In so far
as cases of promotion are concerned, the vigilance status of the concerned
required officials is sent to Personnel Division of CIL after collecting
the same from the vigilance wings of the different subsidiary companies.
Similarly, in case of selection, the vigilance status in respect of the
required employees is sent to the concerned authorities i.e. MOC/CVC after
collecting the same from the different subsidiary companies. CIL Vigilance
maintains the vigilance data in respect of only such employees who are/were
posted in CIL or NEC.
30.2 Anti-corruption measures during the reporting year by CIL and
Subsidiaries.
Total number of Intensive Examination of works/contracts undertaken /
conducted was 79. In addition, Surprise Inspection at worksites were
carried out by Subsidiary Vigilance units in 167 cases. Subsidiary-wise
break-up of Intensive Examination and Surprise Inspection conducted are
shown in the Table below:
(a) Subsidiary-wise numbers of surprise inspections and intensive
examination during the year 2007-08.
Name of the ECL BCCL CCL WCL SECL NCL CMPDIL MCL CIL Total
company (HQ)
Surprise 31 22 31 18 29 22 10 04 NIL 167
inspection
Intensive
examinations 01 19 12 12 06 08 09 11 01 79
Based on complaints received from various corners and form source
information, 258 investigation cases were completed during the reporting
year. Total number of Departmental Inquiries disposed during the year was
70 and a number of officials against whom punitive actions were taken was
327 including 62 non-executives. In Coal India Limited (HQ) and its
subsidiary, number of investigation cases completed and punitive actions
initiated/penalty imposed are shown in the statement below:
(b) Number of investigation completed during the year 2007-08:
Name of the ECL BCCL CCL WCL SECL NCL CMPDIL MCL CIL Total
Company (HQ)
2007-08
(upto
Mar'08) 40 27 26 14 16 87 04 21 23 258
(c) Number of Departmental inquiries disposed and number of Officials
imposed with penalties during the year:
Name of the A B C D E F G H I J
Company
Oral Inquiry
against GO's
disposed 01 03 03 NIL 03 02 NIL 01 02 15
Oral Inquiry
against
NGO's
disposed 12 11 14 05 05 01 01 06 NIL 55
Minor Exe. 34 35 56 01 11 31 06 17 NIL 191
Penalty Non- NIL 02 NIL NIL 01 05 NIL NIL NIL 08
Exe.
Major Exe. 06 10 36 01 07 04 NIL 09 01 74
Penalty Non- 16 08 22 02 02 NIL NIL 04 NIL 54
Exe.
A = ECL
B = BCCL
C = CCL
D = WCL
E = SECL
F = NCL
G = CMPDIL
H = MCL
I = CIL (HQ)
J = Total
(d) Sanction for prosecution during the year:
Grade M3 M2 M1 E5 E4 E3 E2 E1 Total
Number 00 01 01 05 01 02 00 00 10
30.3 Special Achievement:
Interactive Session between Central Vigilance Commission, Ministry of Coal
and Coal India Limited:
CIL Vigilance arranged in inter-active session between Central Vigilance
Commission, Ministry of Coal and Coal India Ltd. and its Subsidiary
Companies in association with IICM, Ranchi on 19th and 20th July, 2007 at
IICM, Ranchi which was attended by the officials of CVC, Officials of
Ministry of Coal including Secretary, Ministry of Coal, CMDs of Subsidiary
Companies of CIL, including Chairman, CIL and all the Functional Directors
of CIL, CVO, CIL, including all CVOs of Subsidiary Companies of CIL.
During the inter-active sessions various important issues as presented by
the CMDs/Directors of CIL and Subsidiary Companies and all CVOs of the
Subsidiary Companies, were discussed. Some of the important issues
discussed/deliberated during the inter-active sessions were issues relating
to disposal in composite disciplinary cases involving Minor and Major
penalty, imposition of penalty of termination with retrospective effect,
variation in different circulars/OM issued by he Commission relating to
closure of complaint involving officers up to two level below the Board
level, issues relating to current status of the contracts executed with ESM
transporter, procurement policy of HEMM, in view of Supreme Court Judgment
of allocating the supply order in the ratio of 60:40 between L-1 and L-2
bidders vis-a-vis Purchase preference policy, issue relating to special
dispensation from the CVC's guidelines to facilitate Coal Videsh to attain
its objective expeditiously, complexities and delay in decision making
involved in procurement of large size HEMM against Global tenders, issues
relating to negotiation with L-1 tender only, participation of CVOs in
administrative decision making process, issues of reimbursement of service
tax and dispute arising out of imposition of service tax where NIT does not
provide for it, Trap cases-simultaneous trial and RDA, award of contract on
nomination basis, issues relating to vigilance clearance, promotion and
personnel policies in the WEB site, issues covering discount bidding system
in respect of coal & sand transportation, bearing on transfer and posting
of the executives whose names have been included in the Agreed List, CIL
marketing related issues, capacity assessment of the two privately run
/washeries at Gevra Project of SECL etc.
Record notes of the discussions/decisions at the inter-active session, as
approved by CVC was communicated to all concerned by CIL Vigilance in
November, 2007.
During the inter-active session, CVC was informed about the implementation
of the Integrity Pact in the procurement being finalized at CIL.CIL
Vigilance took active part in the process of fanalising he names of he
Independent External Monitors which was approved y CVC.
During discussion, Chairman, CIL requested CVC to allow CVO, CIL to act in
an advisory capacity on behalf of CVC. Secretary, MOC also reitered
Chairman, CIL's request for defining the role of CVO, CIL and his working
relationship with CVOs of the Subsidiary Companies.
30.4 Vigilance Awareness Week:
Vigilance Awareness Week was observed at Coal India Ltd(HQ) from 12th
November to 16 November, 2007 as per the directives of the Central
Vigilance Commission.
A circular dated 7/11/2007 requesting observance of Vigilance Awareness
Week from 12th November, 2007 to 16th November, 2007 was issued by CVO, CIL
addressed to Chairman, Coal India Ltd, all Functional Directors of CIL and
all Departmental Heads of CIL Head Qtr. It was requested that the pledge
should be taken on November 12, 2007 at 11.00 AM along with all officials
of their respective Departments. CVO, CIL also vide letter dated 0/11/2007
along with all officials of their respective Departments. CV), CIL also
vide letter dated 7/11/2007 requested all CVOs of Subsidiary Companies to
prepare an action plan and organize the Vigilance Awareness week in a
befitting manner in their respective subsidiaries.
On the 1st day of observance of Vigilance Awareness Week, i.e. on
12.11.2007 matter containing messages from President of India, Prime
Minister of India, Chief Vigilance Commission and CIL was published in
Times of India, Kolkata, as well as New Delhi edition.
The observance of Vigilance Awareness Week was commenced with the pledge on
12th November, at 11-00AM, in Vigilance Division, CIL (HQ) by all he
officials of Vigilance Division of CIL present on the day.
A one-day Interactive Session was organized on 15/11/2007 at Vigilance
Division, CIL(HQ). As CVC has laid stress on efficiency and transparency in
customer oriented issues, specially in the context of taking initiatives in
improvement of the systems and procedures in gear, complaint handling
policy, avenues available for redressal of grievances in
Departments/Orgnisations etc., the following topics were deliberated during
the interactive session, which was attended by Director (Finance), CIL, all
the Heads of the Department of CIL and CVO, CIL and all officers of
Vigilance Division of CIL:
1. Implementation of e-Payment.
2. Operation of e-Procurement and handling of grievances.
3. E-Booking of coal and essential features of New Coal Sales Policy
including handling of grievances from clienteles.
4. System of handling and redressal of grievances of the employees of CIL.
CVO, CIL emphasized on internalization of rules, regulations so as to pre-
empt external imposition of control and penalty. He stressed that efforts
be made to raise awareness among the users of the services provided by the
Departments. He also emphasized that the Departments have to act as focal
points to fight corruption and mentioned that the Vigilance Awareness Week
would provide an opportunity to rededicate ourselves to this mission and to
devise strategies in priority areas like System Improvement and Preventive
Vigilance. Vigilance Awareness Week will provide an opportunity to reach
out to the stakeholders with an open mind and invite suggestion to chalk
out way and means to deliver services in a transparent and efficient manner
and to devise methodologies to eliminate corruption from public life.
On the topic of 'Implementation of e-Payment', Director (Finance), CIL
stated that release of payment to parties is a very long process and in
order to avoid any mischief in payments, e-payment, is a better solution.
In this regard, he described the process of e-payment and stressed on its
implementation in CIL in view of its effectiveness towards transparent
business procedure.
On the topic of 'Operation of e-procurement and handling of grievances',
CGM(Materials Management), CIL deliberated on the process of e-procurement.
He elaborated on the 'Four Demons' in finalizing a procurement action
namely Delay, Discretion, Dispensation and Disinformation. To minimize
these drawbacks in procurement action and for a more transparent solution,
he welcomed e-procurement as major tool. He informed that, the system of e-
procurement had been introduced in Coal India Ltd in 2006-07 with the
approval of CIL Board. He further intimated that this process of e-
procurement was introduced in 2006-07 for the first time in CIL in respect
of central procurement of Explosives for all Subsidiary coal companies. He
also described the total process of e-procurement in detail and its
different merits in comparison with Manual/paper bidding.
General Manager (Sales & Marketing), CIL deliberated on 'e-Booking of coal
and essential features of New Coal Sales Policy including handling of
grievances from clienteles'. He briefed the audience on he New Coal Sales
Policy and specially highlighted on policies for existing as well as new
consumers.
Chief General Manager (Personnel), CIL deliberated on the topic of 'System
of handling and redressal of grievances of the employees of CIL'. He
elaborated on the different committees at CIL and its Subsidiaries to deal
with grievances at different levels. It was informed that in addition,
grievances from executives of coal companies are directly disposed off at
CIL HQ and the concerned executives are replied to through their respective
coal companies. He also informed regarding existence of different Standing
Grievance Committees to deal with grievances from Wage Board employees.
During the discussions, he intimated that amendment of Common Coal Cadre
and CDA Rules are in progress. He also shared his views with the
participants and answered queries on relevant issues.
31. Particulars of Employees:
None of the employees received remuneration in the year 2007-08 in excess
of limits prescribed under Section 217 (2A) of the Companies Act, 1956 read
with the companies (particulars of employees) Rules, 1975 as amended.
32. Board of Directors:
Shri Partha S. Bhattacharyya, appointed as Chairman w.e.f. 1.10.2006,
continued during the year under report. Shri Md. Salim Uddin, Director
(Personnel & Industrial Relation), CIL was on the Board upto 31.5.2007,
Shri K Ranganath, Director (Marketing, CIL continued on the Board during
the year. Shri S. Bhattacharya, as Director (Finance) and Shri N. C. Jha,
as Director (Technical) were on the Board through out the year. Shri R.
Mohan Das, as Director (P&IR) was inducted on the Board w.e.f. 1.6.2007.
Dr. S.P. Seth, Addl. Secretary, MOC continued as part-time Director on the
Board during the year. Shri Sujit Gulati, Jt. Secretary and Financial
Adviser, MOC and Shri Ashok Gupta, Adviser (Traffic), Railway Board were on
the Board as part-time Director upto 10.9.2007 and 9.7.2007 respectively.
Shri Sanjiv Mittal, Jt. Secretary and Financial Adviser, MOC and Shri Vivek
Sahai, Adviser (Traffic Transportation), Railway Board were inducted on the
Board as part-time Director w.e.f. 10.9.2007 and 9.7.2007 respectively.
Shri S. Narsing Rao, CMD, Singareni Colliery Co. Limited, Part-time
Director was on the Board upto 5.2.2008. Shri B. K. Sinha, CMD, South
Eastern Coalfields Limited was on the Board as Part-time Director upto
6.2.2008. Shri D.C. Garg, CMD, Western Coalfields Limited and Shri A.K.
Singh, CMD, Central Mine & Design Institute Limited became Part-time
Director w.e.f. 6.2.2008 and 15.2.2008 respectively and continued on the
Board during the year.
Shri P.K. Banerjee, Shri Arvind Pande, Shri S. Murari and Prof. S. K. Barua
were inducted on the Board as non-official Part-time Directors w.e.f.
24.8.2007.
Your Directors wish to place on record their deep sense of appreciation for
the valuable guidance and services rendered by the Directors during their
tenure who ceased to be Directors during the year.
In terms of Articles 33(d)(iii) of the Articles of Association of the
Company, all the Directors excepting the Chairman, whole-time Directors and
part-time non-official Directors shall retire at the ensuing Annual General
meeting and they are eligible for reappointment.
The Board of Directors held in all 11 (eleven) meetings during the year
2007-08.
33. Directors' Responsibility Statement:
In terms of section 217(2AA) of the Companies Act, 1956, read with the
significant accounting policy at part A and Notes of Accounts at part B of
Schedule M forming part of accounts, it is confirmed:
i) That in preparation of the Annual Accounts, applicable Accounting
Standards have been followed and that no material departures have been made
from the same;
ii) That such accounting policies have been selected and applied
consistently through judgments and estimates that are reasonable and
prudent, to give a true and fair view of state of affairs of the company at
the end of the financial year and Profit & Loss of the company for that
period;
iii) That proper and sufficient care have been taken for maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities; and
iv) That annual accounts have been prepared on a going concern basis.
34. Accounts of the Subsidiaries:
The copies of Accounts of the Subsidiary Companies for the year 2007-08 are
attached in Vol.- II with the Annual Report and Accounts of the Company in
compliance with requirement of Sec. 212 of the Companies Act, 1956.
35. B.I.F.R and BRPSE Status:
35.1 Eastern Coalfields Limited (ECL):
As on 31st March, 1997, accumulated loss of the company exceeded its
networth by Rs. 251.20 crores, hence Company was referred to BIFR during
October, 1997 in terms of Sec. 15(1) of SICA. BIFR registered ECL's case as
Case No. 501/98. Due to financial restructuring done by CIL as on 31st
March, 1998, by converting unsecured loan of Rs. 1179.45 crores into
equity, the networth became positive by Rs. 423.96 crores as on that date
and the company came out of BIFR. Since the company continued to incur
losses year after year, the networth of the company again became negative
as on 31st March, 1999 by Rs. 10.90 crores and hence the company was again
referred to BIFR during November, 1999. Company's case was registered as
Case No. 501/2000.
The Board for Industrial and Financial Reconstructions (BIFR) vide Order
No. 501/2000 dated 23rd February, 2001 declared the company as a sick
company under section 3(1)(o) of the Sick Industrial Companies (Special
Provisions) Act (SICA), 1985 and appointed State Bank of India as Operating
Agency under section 17(3) of the SICA to formulate the Rehabilitation
Scheme. After detailed deliberation with the stakeholders, Revised Draft
Rehabilitation Scheme of ECL dated 31st January, 2004 was prepared. This
was discussed in the Joint Meeting held on 3rd March, 2004. In the Joint
Meeting all the Stakeholders supported the scheme. As per discussion held
in the Joint Meeting, Operating Agency prepared a fully tied up Draft
Rehabilitation Scheme of ECL (March' 2004) and submitted the same to BIFR.
As per the scheme, the networth of the Company was slated to become
positive by 2008-09. BIFR hearing was held on 21st September, 2004. BIFR
sanctioned the Rehabilitation Scheme of ECL (March, 2004) on 2nd November,
2004 for implementation. The scheme was examined by the office of the
Controller General of Accounts. They had also recommended the scheme for
the revival of the company.
Coal price was enhanced from 16th June, 2004. National Coal Wage Agreement
- VII (NCWA-VII) was signed between the operating Trade Unions, Coal India
Limited and its subsidiary companies for a period of five years from 1st
July, 2001 on 15th July, 2005. The impact of enhanced sale value as well as
NCWA-VII (Other than Interim Relief @ 15% of basic) was not considered in
the financial projection of the BIFR sanctioned Rehabilitation Scheme. Due
to implementation of NCWA-VII, as well as the enhancement of sales price
and delay in implementation of projects the scheme was revised as per the
advice of BRPSE. As per the revised scheme, the networth of the company was
slated to become positive by 2009-10. The Revised Scheme was heard by the
Board for Reconstruction of Public Enterprises (BRPSE) on 29th August,
2005. They had recommended the scheme subject to ECL achieving the physical
and financial parameters. The recommendations of BRPSE was also heard by
the Committee of Secretaries under the Chairmanship of Cabinet Secretary on
13th January, 2006. They had also recommended the scheme for the revival of
the company. Cabinet Committee on Economic Affairs had approved the BRPSE
recommended Revival Plan of ECL on 5th October 2006.
After obtaining the approval of Cabinet Committee on Economic Affairs,
Company had submitted the Revised Rehabilitation Scheme to the Monitoring
Agency and BIFR during October, 2006 with a request to approve the Revised
Revival Plan for implementation. BIFR reviewed the ECL's case on 12th June
2007. BIFR advised the company to submit Govt. approved Revival Plan to
Monitoring Agency with a copy to them with 60 days. Company had submitted
the same to Monitoring Agency with a copy to BIFR on 7th August 2007. BIFR
is yet to approve the scheme.
35.2 Bharat Coking Coal Limited (BCCL):
(A) BIFR status:
BCCL was first registered as sick Company vide Registration No. 504/95
dated 18.12.95 as its net worth was negative after completion of Accounts
for the year 1994-95. At its first hearing held on 15.2.96, BIFR appointed
Shri S. Krishnanmurthy as special Director on BCCL Board till 26.5.2003.
BCCL came out of BIFR at 4th hearing held on 22.12.97 as net worth of the
Company became positive due to capital restructuring by converting loan
into Equity by CIL amounting to Rs. 996 crores. Before converting loan into
Equity by CIL, the paid up share capital of BCCL was Rs. 1122 crores. After
conversion, paid up share capital of BCCL is Rs. 2118. However, BCCL was
under watch of BIFR u/s 23 of SICA. Since 1997 BCCL is regularly sending
Annual Report of BCCL from time to time.
After completion of Accounts for the year 1999-2000, the net worth of the
Company became negative and after making reference to BIFR, BCCL was once
again registered as Sick Company vide Registration No. 502/2001. In its
first hearing held on 3.4.2002, BIFR dismissed the reference as time barred
and non-maintainable. BCCL made an appeal vide no. 92/2002 dated 7.5.2002
to AAIFR under section 25 of SICA, challenging the order.
At the AAIFR hearing held on 14.11.2002, after considering all facts and
material and timely submission of Reports, the case was remanded back to
BIFR for proceeding further in accordance with the law. After above
directive of AAIFR, BIFR issued a notice of hearing which was held on
11.2.2004. In the said hearing directed to submit Valuation Report of the
assets of BCCL carried out by the company through a Govt. approved Valuer
and Revival Plan of BCCL. The Revised Revival Plan in the line with the
approved revival scheme of Coal India Ltd. was considered by BCCL Board at
its 232nd meeting held on 2.4.2004. Revival Plan was submitted to BIFR on
12.4.2004. Valuation Report of the assets of BCCL was submitted to BIFR on
31.5.2004 valued by Govt. approved valuer, M/s. Devcon Engineers & Valuers,
Kolkata. Thereafter no hearing of BIFR has taken place.
(B) Submission of rehabilitation scheme to Board for reconstruction of
Public Sector Enterprises.
Government of India constituted a Board for Reconstruction of Public Sector
Enterprises (BRPSE) by notification dated 6th December, 2004. The Revival
Plan submitted to BIFR was sent to Ministry of Coal for further
examination. The Controller General of Accounts (CGA), Capital
Restructuring Cell, Department of Expenditure, Ministry of Finance, Govt.
of India, while broadly agreeing with the revival strategy formulated by
BCCL, stressed on the need for closure of unviable mines, manpower
rationalisation and production enhancement vide letter No.
CGA/CRC/PSO/134/115 dated 24.1.2005 of Dy Controller General of Accounts
(Capital Restructuring Cell).
As per instruction of Ministry of Coal, BCCL submitted its Rehabilitation
Scheme in prescribed format to BRPSE in April, 2005 suitably modifying the
Revival Plan submitted to BIFR on 12.4.04. Considering the present
scenario, taking into account the financial implication arising out of
finalisation of NCWA-VII and incorporating the suggestion of Dy. CGA, a
modified Rehabilitation Scheme has been finalised and presented.
BRPSE at its 19th meeting held on 29.8.2005 has advised MOC/BCCL to
resubmit the Revival Proposal duly appraised by an independent consultant
for its consideration. Accordingly, BCCL Board at its 244th meeting held on
21.1.06 appointed M/s CARE Advisory as independent consultant for appraisal
of Revival Plan. Final Report of M/s. CARE Advisory on Revival Plan was
accepted by BCCL Board at its 245th meeting on 21.4.2006. A copy of report
on revival plan was sent to Secretary (Coal), MOC and Chairman, Coal India
Ltd. for further action.
As desired by BRPSE vide its letter no. BRPSE/3(33)2005 dated 21.5.2007, 18
copies of the each of the following documents were submitted for
consideration of BRPSE.
i) Updated Revival Proposal of BCCL (figures updated till 2006-07)
ii) Final report of M/s. CARE Advisory on appraisal of BCCL's Revival
report.
iii) Summarised note on Revival Proposal of BCCL.
iv) Annual Report of BCCL for the year 2005-06.
v) Provisional accounts with Schedules of BCCL for the year 2006-07.
While evaluating the performance of the company for the year 2006-07, it
was observed that physical parameter achieved was more or less in line with
those envisaged in the report of M/s. CARE Advisory. However, the financial
parameter set could not be achieved due to various reasons. Further during
the intermediate period, changes had occurred in respect of various factors
having a bearing on the operation of the company.
As desired vide letter dated 21.5.07 from Director BRPSE revival /
restructuring proposal of BCCL duly updated with the latest available
information/figure for the year 2005-06 and 2006-07 was submitted to
Director MOC vide letter No. CMD/ES/F-2(B-07-412) dated 25.8.2007.
As desired by Secretary to the Govt. of India, MOC vide letter No.
13011/4/2004-CA-II dated 20.9.2007, a summarized note on revival proposal
of BCCL was submitted to BRPSE in September 2007.
As per advice of Under Secretary to the Government of India, MOC vide
reference No. 1301/4/2024-CA-II Vol.-II dated 20.2.2008, a PPT presentation
on the revival Proposal of BCCL was made before the Board during 56th
meeting of the Board for Reconstruction of Public Sector Enterprises
(BRPSE) at New Delhi on 22.2.2008.
As conveyed vide Office Memorandum No. BRPSE/5(2)/2008 Dated 27.2.2008
issued by Director, BRPSE, it is stated that BRPSE has given its
recommendation for revival of BCCL under ministry of Coal. The
Recommendation of BRPSE recorded in the minutes of 56th meeting of BRPSE is
as follows:
QUOTE:
'17. Recommendation of the Board:
17.1 The Board discussed the revival proposal in detail and having taken
into account all the relevant factors, the view of the MOC as well as CIL,
the holding company of BCCL recommended the following revival package:
a) Cash infusion by Coal India Ltd.
Cash support by the way loan upto maximum of Rs. 1350 crores as per year
wise phasing indicated in the report of M/s. CARE to be repaid by BCCL as
per prescribed repayment schedule.
b) Conversion of loan of CIL into interest free loan:
Conversion of past loan of Rs. 1083 crores of CIL into interest free w.e.f.
1/4/05.
c) Waiver of interest, loan by CIL:
i) Waiver of interest by CIL in 2009-10 amounting to Rs. 493 crores accrued
upto 31.3.2005 and not recognized as income in the books of CIL.
ii) Waiver of the loan of Rs. 1083 crores as on 1.4.2005 by CIL in the year
in which BCCL shall be consequently enable to report a positive net-worth.
iii) Waiver of current account balance of Rs. 1456 crores as on 1.4.2003 by
CIL in the year in which BCCL shall be consequently enabled to report a
positive net-worth.
iv) Waiver of accrued interest on other loans by CIL in the year in which
BCCL shall be consequently enabled to report a positive net-worth.
17.2 The Board advised MOC/CIL/BCCL to ensure that the funds infused are
utilized strictly for the purpose for which they were meant.
17.3 The Board also advised MOC/CIL/BCCL to implement the recommendations
of CARE on (i) improving the age profile of workforce, (ii) strengthening
the costing system so that viability analysis of various initiatives and
profitability analysis of product/mines can be carried out and (iii)
investment in information technology for implementation of enterprise wide
software solutions in BCCL.
17.4 The Board further recommended that BCCL should, after implementation
of the above revival package, achieve the projected performance outlined in
para 12 above and the same should be indicated clearly in the Government
orders sanctioning the revival package.
17.5 The Board further recommended that while Chairman, CIL should monitor
the implementation of the revival plan of BCCL on monthly basis. Secretary,
MOC should also monitor it on regular basis. A compliance report should be
sent to the Board within one year.'
UNQUOTE:
The relevant part of the minutes of the Meeting of REVIEW OF COAL SECTOR
taken by Principal Secretary to Prime Minister on 3rd June 2008 circulated
by Director, PMO New Delhi vide reference No. 200/31/c/78/2005-ES.I dated
6.6.2008 reads as follows:
'REVIVAL OF BCCL - The confirmed minutes of the meeting held on 22.2.2008
by BRPSE for revival package have been received. The matter is being
referred to BIFR for further concurrence.'
36. Acknowledgement:
The Board of Directors of your Company wishes to record their deep sense of
appreciation for the sincere efforts put in by the employees of the company
and the Trade Unions. Your Directors also gratefully acknowledges the co-
operation, support and guidance extended to the company by the various
Ministries of the Government of India in general and Ministry of Coal in
particular, besides the State Governments.
Your Directors also acknowledges with thanks the assistance and guidance
rendered by the Auditors, the Comptroller and Auditor General of India and
the Registrar of Companies, West Bengal and wishes to place on record their
sincere thanks to the Consumers for their patronage.
37. Addenda:
The following are annexed:
i) The comments and review of the Comptroller and Auditor General of India.
ii) Replies to the observations made by the Statutory Auditors on the
Accounts for the year ended 31st March, 2008.
iii) Statement pursuant to Sec. 212(i) (e) of the Companies Act, 1956.
For and on behalf of the Board of Directors
Sd/-
Partha S. Bhattacharyya
Chairman
Place : Kolkata,
Date : the dated 24th July, 2008.
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