Ann Rep 1011

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Chapter-1

The Year 2010-11 at a Glance

1 Introduction

1.1 The Ministry of Coal (MoC) was under the charge of Shri Sriprakash Jaiswal Minister of State (Independent Charge). With effect from 19th January, 2011, Shri Sriprakash Jaiswal assumed the charge of the Ministry as Cabinet Minister and Shri Pratik Prakashbapu Patil assumed the charge of the office of the Minister of State in the Ministry of Coal.

1.2 The Ministry of Coal has the overall responsibility of determining policies and strategies in respect of exploration and development of coal and lignite reserves, sanctioning of important projects of high value and for deciding all related issues. These key functions are exercised through its public sector undertakings, namely Coal India Limited (CIL) and Neyveli Lignite Corporation Limited (NLC) and Singareni Collieries Company Limited (SCCL), a joint sector undertaking of Government of Andhra Pradesh and Government of India with equity capital in the ratio of 51:49.

1.3 Coal Reserves In India

The coal reserves of India up to the depth of 1200 meters have been estimated by the Geological Survey of India at 276.81 billion tonnes as on 1.4.2010. Coal deposits are chiefly located in Jharkhand, Orissa, Chhattisgarh, West Bengal, Madhya Pradesh, Andhra Pradesh and Maharashtra.

1.4 The Lignite reserve in the country has been estimated at around 39.90 billion tonnes as on 31.3.2010. The major deposits of Lignite reserves are located in the state of Tamilnadu. Other states where lignite deposits have been located are Rajasthan, Gujrat, Kerala, Jammu & Kashmir and Union Territory of Puduchery.

2. Coal Production

The Coal production all over India during the period April 2010 to December, 2010 has been 369.41 million tonnes (Provisional) as compared to the production of 365.66 million tonnes (MT) during the corresponding period of the previous year showing a growth of 1.02 %. Company-wise details for coal production from CIL/SCCL/Others are given below :-

( In Million Tonnes)COMPANY Target

2010-11Actual upto Dec. 2010

Achievement (%)

2009-10 Actual upto Dec. 2009

Growth (%)

CIL 460.50 299.52 65.04 295.51 1.36SCCL 46.00 36.33 78.98 36.55 -0.60Others 65.87 33.56 50.94 33.60 -0.12Total 572.37 369.41 64.54 365.66 1.02

Annual Report 2010-11

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Company wise Dispatch (in Million Tonnes)

Company Apr10-Dec10 Apr09-Dec09 % growthAAP Target Actual % achievement Actual

CIL 338.42 310.06 91.6 301.09 2.98%SCCL 42.672 44.952 105.3 44.692 0.58 %

Sector wise Dispatch (Provisional) (in Million Tonnes)

Sector Apr10-Dec10 Apr09-Dec09 % growth Power ( Utility )* 220.99 217.88 1.43Power( Captive) 24.55 23.97 2.42Power ( Utility & CPPs) 245.54 241.85 1.53Steel ** 5.79 5.77 0.35Cement 5.32 4.74 12.24Fertilizer 2.04 1.85 10.27Others 51.37 46.88 19.93Total-CIL 310.06 301.09 2.98

* 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

Coal Supply : Actual coal supply/off take dur-ing 2009-10, supply plan 2010-11 and Actual

(in Million Tonnes)Source 2008-09

Actual2009-10

(BE)2010-11

(BE)2010-

11(BE) till Dec 2010

2010-11 (Actual) till

Dec 2010CIL 401.46 437.00 415.88 460.50 338.92 310.46SCCL 44.53 44.38 49.37 46.00 34.86 36.16

3. Coal Dispach

During the period April, 2010-Dec. 2010 Coal dispatch from CIL was 310.06 million tonnes (Provisional) against 301.09 million tonnes during the same period last year, registering a growth of 2.98% over corresponding period of previous year.

During the year 2010-11 (April, ‘10 – Feb.’11), SCCL supplied 44.952 MT of coal against the target of 42.672 MT, registering 0.58 % growth over the same period of previous year. SCCL is anticipating to dispatch 5.458 MT of coal in the remaining period (March 2011) of the current year.

coal supply during 2010-11 till Dec. 2010, is given below:-


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4. Lignite Production

Neyveli Lignite Corporation (NLC) is an integrated mining cum power project with open cast lignite mines linked with Thermal Power Stations. During the period April to December 2010 lignite production and power generation achievements of Neyveli

Lignite Corporation were 16.415MT and 12730.51 MU respectively against the target of 17.573 MT and 13520 MU.

Details of target for the year 2010-11, actual performance up to the end of December 2010 and provisional for the period January 2011 to March 2011 is furnished below:-

Product Actual 2009-10 Target for 2010-11

AchievementApril to

December 2010

Provisional January 2011 to

March 2011Lignite MT 22.34 24.14 16.41 5.48Power Generation MU

17656.04 18758.00 12730.51 3955.49

5. Allocation of Coal Blocks

As on 31.12.2010, 208 coal blocks with geological reserves of about 50 billion tonnes have been allocated

to the Govt./private companies. The Sector-wise details of coal blocks allocated to both Govt. sector and private sector is given at the table below:-

S.No

Sector To Govt. companies

To Private Companies

To UMPPs/ Tariff based bidding

Total blocks

GR ( In MT)

No. of Blocks

GR (In MT)

No. of Blocks

GR (In MT)

No. of Blocks

GR (In MT)

1. Power 53 18921.02 28 5010.38 12 4846.26 93 28777.662. Commercial

Mining39 7312.86 - - - - 39 7312.86

3. Iron & Steel 4 1708.06 61 8602.55 - - 65 10310.614. Cement - - 6 628.74 - - 6 628.745. Small &

Isolated- - 3 27.34 - - 3 27.34

6. Coal to Liquid

- - 2 3000.00 - - 2 3000.00

Total 96 27941.94 100 17269.01 12 4846.26 208 50057.21

During the year 2010-2011 (Upto 31st December, 2010), one coal block namely Bankhui with total geological reserves of 800 MT was allocated to

M/s Sakhi Gopal Intergrated Power Company Ltd. (SPV of first additional Orissa UMPP) for generation of power.


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7. Coal and Lignite Projects Approval of the Cabinet Committee on

Infrastructure (CCI) for setting up of NLC’s 2X500 MW lignite based “Neyveli New Thermal Power Project” at Neyveli at an estimated capital cost of Rs.5907.11 crores (October, 2010 Price Level) including an Advance Action Proposal (AAP) of Rs.17.85 crores, IDC of Rs.559.03 crores and FE component of Rs. 969.81 crores has been sought.

8. Long Term Coal Linkage Prior to introduction of New Coal

Distribution Policy (NCDP), two types of Linkage Committees used to function for deciding the long term and short term availability of coal and distribution to the consumers belonging to Cement, Power and Steel Sectors including sponge iron units .

(i) Standing Linkage Committee (Short-Term) : SLC (ST)

(ii) Standing Linkage Committee (Long-Term) : SLC (LT)

With the introduction of NCDP and FSA regime in replacement of linkage system, Standing Linkage Committee (Short-term) has been abolished in July, 2010.

9. (a) Navratna Status to NLC A proposal for grant of Navratna status

to Neyveli Lignite Corporation has been submitted to the Department of Public Enterprises for their consideration.

(b) Maharatna Status To CIL A proposal for grant of Maharatna status to

Coal India Ltd. has been submitted to the Department of Public Enterprises for their consideration.

10. Proposal for Introduction of System of Auction by Competitive Bidding for Allocation of Coal Blocks

The number of applicants for each captive coal block is increasing as the demand for coal keeps increasing and selection of one application out of number of eligible applicants is becoming difficult. A need was felt for evolving an objective and transparent system of allocation of coal blocks. Accordingly, the Mines and Minerals (Development and Regulation) Act has been amended to provide for introduction of competitive bidding system for allocation of coal blocks for captive use. The amendment has been notified in Gazette of India (Extraordinary) on 9th September, 2010. The Amendment Act seeks to provide for grant of reconnaissance permit, prospecting licence or mining lease in respect of an area containing coal and lignite through auction by competitive bidding, on such terms and conditions as may be prescribed. This, would however, not be applicable in the following cases:-

• where such area is considered forallocation to a Government company or corporation for mining or such other specified end use;

• where such area is consideredfor allocation to a company or corporation that has been awarded a power project on the basis of competitive bids for tariff (including Ultra Mega Power Projects).


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The Government is now examining the modalities for preparation of the guidelines/legal framework for conducting the competitive bidding of coal and lignite blocks.

11. Regulator for Coal Sector A Cabinet Note on setting up of a Coal

Regulatory Authority along with the Draft Bill has been circulated to various Ministries/Department for their comments. The comments from concerned Ministries/Department have now been received and the Draft Bill is being finalized. The Draft Bill would be placed before the competent authority for approval.

12. Listing of CIL

Coal India Limited was granted Navratna

Secretary (Coal), Special Secretary (Coal) and Chairman CIL at listing ceremony of Coal India Limited on 04.11.2010 at BSE

status with effect from 24th October, 2008. At the time of awarding the Navratna status to CIL, the Government have put the condition that the listing of shares of CIL should be done in three years. The listing of CIL is expected to infuse better Corporate Management in the company and listing of CIL is expected to infuse better Corporate Management in the company and considering its performance, CIL standing in market will also improve, including improved valuation of the company. Accordingly, Government has disinvested 10% paid up equity in CIL and CIL is now a listed company and its shares are listed in Bombay Stock Exchange Limited and National Stock Exchange Limited.


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13. Standing Committee on Safety on Coal Mines

There is a Standing Committee on Safety in Coal Mines under the Chairmanship of Minister in Charge of Ministry of Coal with representatives from Ministry of Labour & Employment, Director General of Mines and Safety, Dhanbad, Chairman, CIL and CMDs of CIL subsidiaries, SCCL, NLC, IISCO, DVC, different State Public Sector Companies, private sector Coal companies and Central Trade Unions Leaders as members of this Committee.

The Committee examines all aspects of safety in coal mines and takes stock of safety situation for bringing out further improvement. It is the highest national level tripartite safety monitoring committee in India for coal mines. The Committee meets periodically and so far 34 meetings of the Committee have been held.

The 34th meeting of the Standing Committee on Safety in Coal Mines was held on 23.12.2010. The Committee reviewed the Action Taken Report on the recommendations of earlier meetings and discussed the Action Taken Plan to prevent recurrence of accidents due to inundation, roof falls, explosion and other causes and different safety related issues for improving the safety and health conditions in coal mines. The Committee recommended the following:-

(i) Strengthening of DGMS by filling up the post of shortage of Inspectors to over come the shortage.

(ii) Expediting the process of Amendment

of Coal Mines Regulations (CMR).

(iii) Strengthening Safety Organization of CIL

(iv) Taking steps for Better safety for Contractor’s worker

(v) Measures to be taken to prevent theft of explosives particularly in naxalite infested region.

(vi) Inspection of private mines by a Sub- Committee comprising of representatives of trade Union, DGMS, CIL and Ministry of Coal.

(vii) Risk Analysis & Safety Management Plan based on identified risks.

(viii) Expediting filling up of Statutory posts in all coal companies.

(ix) Preparation of action plan by coal companies to prevent recurrence of accidents from inundation, mine fire, explosion, roof falls, etc.

(x) Implementation of recommendations of various Courts of inquiry on mine accidents.

(xi) Proper and adequate utilization of safety budgets by coal companies.

14. Guidelines for Mine Closure

With a review to restore mined out areas to the primary level to the extant possible, it has been decided to make it mandatory to prepare mine closure plans for which Ministry of Coal has issued guidelines for adoption by coal mine owners. This would help in addressing environmental issues related to coal mining. These guidelines are available on the website of this Ministry.


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15. Performance Evaluation and Monitoring System (PEMS)

Action for implementation of the system for monitoring and evaluation of the performance had been initiated last year in the Ministry of Coal under the aegis of Cabinet Secretariat. The performance of the Ministry was evaluated for the last quarter of 2009-2010 based on the Results Framework Document. The Results Framework Document of the Ministry of Coal for 2010-11 was submitted to the Cabinet Secretariat with main objectives of achievement of annual action plan targets for coal production and coal off-take by Coal India Limited, lignite production and power generation by Neyveli Lignite Corporation, to ensure adequate supply of coal to the regulated power utilities, development and

production from captive coal blocks, thrust on exploration of resources, increase in coal washing capacities, improvement in safety conditions in mines, development of rail and road infrastructure in coal-field areas and other policy issues. The Results Framework Document for responsibility centers under the Ministry of Coal i.e. Coal Controller Organization and Coal Mines Provident Fund Organisation have also been prepared for implementation in 2011-12. A sevottam compliant system to redress and monitor public grievances has been created in the Ministry of Coal including PSUs. Citizens’ Charter of the Ministry of Coal has been re-drafted to make it sevottam compliant. Strategy and strategic plan of the Ministry for next five years has been prepared after consultation with various stake holders in the coal sector.


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2.1 Secretariat Set Up

The Secretariat of Ministry of Coal is headed by a Secretary who is assisted by one Special Secretary, three Joint Secretaries (including Financial Advisor), one Project Advisor, one Economic Advisor, seven Directors, one Deputy Secretary, nine Under Secretaries, eighteen Section Officers, one Assistant Director (Official Language), one Controller of Accounts, one Deputy Controller of Accounts, two Senior Accounts Officers and four Assistant Accounts Officers and their supporting staff.

2.2 Functions of the Ministry of Coal

The Ministry of Coal is concerned with exploitation, development and exploitation of coal and lignite reserves in India. The works allocated to the Ministry of Coal (includes Subordinate office or other organisation including PSUs concerned with their subjects) under the Government of India (Allocation of Business) Rules, 1961, as amended from time to time as follows :-

(i) Exploration and development of coking and non-coking coal and lignite deposits in India.

(ii) All matters relating to production, supply, distribution and prices of coal.

(iii) Development and operation of coal washeries other than those for which the Department of Steel is responsible.

(iv) Low temperature carbonisation of coal and production of synthetic oil from coal.

(v) All work related to coal gasification.

Chapter-2

Organisation

(vi) Administration of the Coal Mines (Conservation and Development) Act, 1974 (28 of 1974).

(vii) The Coal Mines Provident Fund Organisation.

(viii) Administration of the Coal Mines Provident Fund and Miscellaneous Provision Act, 1948 (46 of 1948).

(ix) Rules under the Mines Act, 1952 (32 of 1952) for the levy and collection of duty of excise on coke and coal produced and despatched from mines and administration of rescue fund.

(x) Administration of the Coal Bearing Areas (Acquisition and Development) Act, 1957 (20 of 1957).

(xi) Administration of the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957) and other Union Laws in so far the said Act and Laws relate to coal and lignite and sand for stowing, business incidental to such administration including questions concerning various States.

(xii) Administration of Coal Mines Nationalisation Act, 1973 (26 of 1973).

2.3 Public Sector/ Joint Sector Companies

Coal India Limited with its headquarters at Kolkata is the apex body in Coal Industry under the administrative control of the Ministry of Coal. It is responsible for laying down policy guidelines and work crdimation wiht its subsidiary companies. CIL has been entrusted with the responsibility of

Organisation

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investment, planning, manpower manage-ment, purchase of heavy machineries, financial budgeting etc on behalf of all its subsidiaries. Coal India Ltd. (CIL) has following 8 subsidiary Public Sector Undertaking companies under its control:-

(i) Bharat Coking Coal Limited (BCCL), Dhanbad, Jharkhand

(ii) Central Coalfields Limited (CCL), Ranchi, Jharkhand

(iii) Eastern Coalfields Limited (ECL), Sanctoria, West Bengal

(iv) Western Coalfields Limited (WCL), Nagpur, Maharashtra

(v) South Eastern Coalfields Limited (SECL) Bilaspur, Chhattisgarh

(vi) Northern Coalfields Limited (NCL), Singrauli, Madhya Pradesh

(vii) Mahanadi Coalfields Limited (MCL), Sambalpur, Orissa

(viii) Centeral Mine Planning and Design Institute Limited (CMPDIL), Ranchi, Jharkhand

2.3.1 The Neyveli Lignite Corporation Limited (NLC), with registered office at Chennai and corporate office at Neyveli in Tamil Nadu is engaged in exploitation and excavation of lignite, generation of thermal power and sale of raw lignite.

2.3.2 Singareni Collieries Company Limited (SCCL) - A Joint Sector Undertaking of Government of Andhra Pradesh and Government of India with equity capital in the ratio of 51:49.

2.4 Subordinate Office and Autonomous Organisation

The following subordinate office and

autonomous organisations are under the administrative control of Ministry of Coal –(i) Office of the Coal Controller’s

Organisation (CCO) – a subordinate office.

(ii) Coal Mines Provident Fund Organisation (CMPFO) – an autonomous body.

2.5 Coal Controller’s Organisation

2.5.1 The Controller’s Organisation is a subordinate Office of Ministry of Coal, having it headquarters at Kolkata and field Offices at Dhanbad, Ranchi, Bilaspur, Nagpur and Kothagudem. Each field office is headed by one GM/ DGM level executive working in the capacity of Officer on Special Duty being supported by other technical officers . Apart from carrying out inspection for ascertaining quality in selected mines, the field officers also carry out regular inspections to ensure compliance with specific orders relating to coal quality and resolving statutory complaints. Besides looking after the quality surveillance, the above field officers also entrusted with field assignments associated with CCDA assistance under Coal mines conservation and Development Rules 1975, opening /re-opening permission of seams of mines under the Colliery Control Rules, 2004 and co-ordination with the Coal Companies. In addition ,one officer on Special Duty is posted in the Coal Controller’s Organisation in Kolkata for co-ordinating the field offices along with in charge of coal mines under Asansol, Sambalpur and NEC Command area, monitoring of captive coal/lignite blocks and their associated end use projects and rendering assistance to Coal Controller


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on all technical matters like parliamentary questions, Budget & EFC Note etc.

2.5.2 The Coal Controller‘s Organisation discharges various statutory functions derived from the following Statutes:-

(i) The Colliery Control Order , 2000 and the Colliery Control Rules, 2004.

(ii) The Coal Mines (Conservation and Development) Act , 1974 and the Coal Mines (Conservation & Development) Rules , 1975

(iii) The Collection of Statistics Act , 1953 [32 of 1953] and the Collection of Statistics (Central)Rules , 1959.

(iv) The Coal Bearing Areas (Acquisition & Development) Act 1957 [ 20 to 1957]

2.5.3 The Coal Controller’s Organisation also discharges the following functions:-

(a) Monitoring progress of development of Captive Coal/Lignite Blocks and their associated end-use projects.

(b) Monitoring of Washeries. (c) Following up of submission of mine closure

plans.(d) Residual works of Commissioner of

payments.

2.5.4 A brief description of Coal Controller’s Organisation performance during the period from April,2010 to December,2010 is as under :-

(i) Grant of Permission for opening and re-opening of coal mines

Coal Controller, under Rule 9(1) of Colliery Control Rules 2004, granted permission for opening and re-opening of seams of 21 Nos. of seams of Coal mines/Lignite mines.

(ii) Disposal of cases under Section 8 of the Coal Bearing Areas (Acquisition and Development) Act. 1957

Coal Controller submitted reports to the Ministry of Coal under Section 8 of the Coal Bearing Areas (Acquisition and Development) Act 1957, in respect of 14 Notifications.

(iii) CCDA Release funds under Stowing/Protective and Infrastructure facilities

The Coal Controller acts as the Member Secretary for the Coal conservation & Development Advisory Committee (CCDAC), constituted under the Coal Mines (Conversation & development) Rule 1975. The office of Coal Controller receives processes and scrutinizes applications/claim from coal companies towards CCDA activities like stowing, protective work, Research & Development Activities, Road and Railways Infrastructure projects in the coal fields areas. All the proposals for subsidy are examined for partial reimbursement @ 100 %, 75 % and 90% assistance by the Central Government to the coal companies towards R & D , PW & ST. The balance cost in each case is borne by the coal companies.

These rates under revision exercise by Central Mine Planning and Design Institute Ltd. (CMPDIL) as directed by CCDAC. to CCDA for submission to the Sub-Committee, which recommended it to CCDAC. Based on the approval of Coal conservation & Development Advisory Committee, Ministry of Coal release of funds under different heads.

During the year 2009-10 B.E was `135.00 Crores for subsidy towards Stowing, Protective works and R&D Head. In the above year 65th and 66th CCDAC were held on 31.10.2009

Organisation

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(` in Crores) 2009-10Spill over

from 2008-09Recommendation in 65th

CCDAC meetingRecommendation in 66th

CCDAC meetingSpill over to

2010-11Stowing Protective

WorksStowing Protective

works2.6747 65.1025 2.0314 60.6318 5.1028 3.2471

Ministry of Coal sanctioned ` 135.00 Crore for the year 2009-10. Total recommendation of CCDAC for 2009-10 was `138.2471 Crore including spill over amount from 2008-09 `2.6747 Crore. Ministry released `135.00 Crore and rest

of the amount ` 3.2471 Crore was spill over to the next year. In 2010-11 the 67th CCDAC meeting was held on 20.12.2010 and the committee recommended total amount `75.8510 Crore as shown in table below :- (` in Crore) 2010-11 B.E. ` 135.00 Crore.

Spill over from 2009-10

Recommendation in 67th CCDAC meeting Total

Stowing Protective Work Research & Development

works3.2471 62.5124 9.7242 0.3673 75.8510

`22 Crore in BE in 2009-10 and `22 Crore in BE 2010-11 for Road & Rail infrastructure are kept pending for EFC approval from Ministry of Finance.

(iv) Coal Samples inspected, statutory complaints received & settled

Under the Colliery Control Rules(CCR), 2004, Coal Controller is to monitor the quality of Coal dispatched from collieries and also settle quality complaints of consumers. During the period April 2010 - December 2010, 1400 Nos. of check samples were drawn and analyzed. During this period, 12 Nos. of Non-Statutory complaints were received and necessary action have been taken by CCO.

(v) Collection of Excise Duty As per Coal Mines (Conservation &

Development Act 1974, Coal Controller collects Excise Duty on the coal dispatched @ ` 10/Ton. `384.90 Cores has been collected during the period April, 2010 to December, 2010. The estimated (Projected) figure for the period from January 2011 to March, 2011 will be `160.10 cores.

(vi) Collection, compilation and publication of coal statistics

Under the collection of Statistics Act, 1953[(32 0f 1953) and the Collection of Statistics (Central) Rules 1959, Coal Controller is the statistical authority for compilation and dissemination of data relating to coal and lignite in the country. Besides, providing monthly data to Ministry of Coal, the Central Statistical Organisation, the Indian Bureau of

and 22.02.2010 respectively. The release of CCDAC fund of 2009-10 is shown as below :-


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Mines, RBI, DIPP and other national and international organisations, also published the Annual Coal Directory 2008-09 and Provisional Coal Statistics 2009-10. The Annual Coal Directory 2009-10 will be published shortly.

(vii) Monitoring of progress of captive coal blocks allocatd and its associated end use projects

Coal Controller monitors the progress of allocated coal blocks and associated end use projects on quarterly basis. At the level of Ministry, periodic reviews are carried out by a Committee headed by Additional Secretary (Coal), where representatives from the concerned State Governments also attend. So far, production has commenced in 26 coal blocks (14 private and 12 public) and the production from these coal blocks for the year 2009-10 was 35.313 million tonnes and for the year 2010-11(Upto December, 2010 Prov.) was 26.921 million tonnes as reported by the Coal Controller’s Office. One review meeting was held in July, 2010 during the period. Due to slow progress in achievement of various milestones, 84 show cause notices were issued to 41 private companies and 43 government companies.

2.6 Coal Mines Provident Fund Organisation (CMPFO)

The Coal Mines Provident Fund Organisation is an Autonomous body established under the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948, and is responsible for administering the Coal Mines Provident Fund Scheme, 1948, Coal Mines Deposit Linked Insurance Scheme, 1976, and Coal

Mines Pension Scheme, 1998. These three schemes are administered by a tripartite Board of Trustees, consisting of Central and State Government’s representatives, employers’ representatives and employees’ representatives.

The Organisation renders services to 4.72 lakh Provident Fund subscribers and about 3.28 lakh pensioners approximately as on 31st December, 2010. The Headquarters of CMPFO is at Dhanbad and its 24 Regional Offices are spread in the Coal producing states in the Country.

2.6.1 Coal Mines Provident Fund Scheme

At the end of the financial year 2009-2010 the total number of coal mines and office units covered under the Scheme stood at 901 excluding coke plants operating in Private Sector. Live membership of the Provident Fund Scheme, 1948 as on 31.12.10 is 4.72 lakhs approx.

During 2010-11 (upto Dec, 10) Coal Mines Provident Fund Contributions including voluntary contributions amounting to `2900 Crore approx were received in the Coal Mines Provident Fund raising thereby the total contributions upto ` 31,264 Crore approx. The net accretion by way of contribution and interest thereon, less refund and advances; amounted to `32,948.81 Crore approx. The entire accumulation in the fund is invested in accordance with the guidelines laid down by the Ministry of Finance. The total face value of the fund’s investment upto 31st Dec, 2010 stood at ̀ 42,973.38 Crore approx.

Organisation

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Refund and Advance cases from Provident Fund

No of cases settled (from 01.04.2010 to 31.12.2010) and disbursed #

Provident Fund Refund Cases 18759Marriage Advance Education Advance House Building Advance

10533

The amount disbursed on P.F. and Advances ` 1880.19 Crores approx # All figures are provisional.

During 2009-10, provisional interest has been allowed on members’ accumulation at the rate of 8.50 % per annum.

Refund from Provident Fund during 2010-11 (upto 31st Dec, 10) together with the advances paid is indicated below:-

The cost of Administration of CMPF Scheme is met out of the administrative Charge @3% paid by the Coal companies to the CMPFO.

2.6.2 Coal Mines Deposit Linked Insurance Scheme

In the event of death of an employee in harness who was a member of Coal Mines Provident Fund Scheme, his/her nominee is entitled to receive in addition to the Provident Fund, an amount equal to the average balance, in the account of the deceased during the preceding 3 years, subject to a maximum of `10,000/-.

In accordance with the Scheme, the employers were required to contribute at the rate of 0.5% of the aggregate wages of covered workers. The Central Government was also required to pay half of the amount contributed by the employers under the Scheme. Currently, for meeting the cost of administration of this scheme, Private Sector employer’s contribute @ 0.1% of aggregate wages and the Central Government contributes 50% thereof i.e. 0.05% of aggregate wage.

The executive cadre employees of CIL were exempted from operation of the said Scheme vide Gazette Notification No. S.O 822 (E) dated 24.03.2009. The workers of the CIL and its subsidiaries were exempted earlier from the operations of the Scheme by Ministry of Coal.

2.6.3 Coal Mines Pension Scheme, 1998

In exercise of the powers conferred by Section 3E of the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948( 46 of 1948) and in suppression of the Coal Mines Family Pension Scheme, 1971, except in respect of things done or omitted to be done before such supersession, the Central Government has framed the Coal Mines Pension Scheme, 1998.

The Coal Mines Pension Scheme has come into force with effect from the 31st day of March, 1998. The number of new claims of Pension settled in 2010-11 (upto 31st Dec’ 10) is 28,154. The total amount disbursed under the Coal Mines Pension Scheme, 1998 during 2010-11 (upto 31st Dec’ 10) is `452.95 Crore approx.


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Corpus of the Fund and its sustainabilityThe Pension Fund consists of the following:-(a) net assets of the Coal Mines Family Pension

Scheme, 1971 as on the appointed day;(b) an amount equivalent to two and one

third percent of the monthly salary of the employee, being the aggregate of equal shares of the employee and the employer from their respective contributions to be transferred from the appointed day from the Fund of employee.

(c) An amount equivalent to two percent of the salary of the employee from the first day of April, 1989 or the date of joining, whichever is later, upto the 31st day of March, 1996 and two percent of the notional salary of the employee from the 1st day of April, 1996 or the date of joining, whichever is later, to be transferred from his salary, every month.

(d) An amount equivalent to one increment to be calculated on the basis of the salary of the employee as on the first day of July, 1995 or the date of joining, whichever is later, to be transferred from the first day of July, 1995 or the date of joining, whichever is later, from the salary of the employee every month.

(e) An amount equivalent to one and two-third percent of the salary of the employee to be contributed by the Central Government from the appointed day;

Provided that in the case of an employee whose salary exceeds rupees one thousand six hundred per month, the contribution payable by the Central Government shall be equal to the maximum of the amount payable on the salary of rupees one thousand six hundred per month only;

(f) Amounts to be deposited by Pension members including new optee in terms of the provisions of the Scheme.

During 2010-11 (upto 31st Dec, 10) `503.50 Crore approx was diverted to Pension Fund from Provident Fund as mandatory pension contributions of in service members. Net accretion in the pension contribution of in-service members as on 31st Dec, 2010 (without Government Share and interest) is ` 889.13 Crore approx.

Coverage(a) All employees who were members of the

erstwhile Coal Mines Family Pension Scheme, 1971 and were on rolls on 31st March, 1998.

(b) All such employees who are appointed on or after 31st March, 1998.

(c) All such optee members who opted for membership of the Pension Fund in form PS-I and PS-2 as the case may be with the condition specified under the Scheme.

(d) All such employees who died while in service during the period 01.04.1994 to 31.03.1998 are treated as deemed optee of the scheme vide G.S.R. No. 521(E) dated 12.08.2004.

Benefits(a) Monthly Pension. (Superannuation,

Voluntary Retirement, exit from service)

(b) Disablement Pension. (c) Monthly widow or widower pension.(d) Children Pension(e) Orphan Pension.(f) Exgratia Payment.

Note: All figures provided in the material for Annual Report of the Ministry of Coal for the year 2010-11 are provisional (un-audited).

Coal Exploration & Resources

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Chapter-3


3.1 Introduction

Exploration for coal in the country is carried out in two broad stages i.e. the Regional Exploration and Detailed Exploration. The regional exploration for coal is carried out by the Government organizations whereas detailed exploration is largely undertaken by coal companies.

3.1.1 Regional and Promotional Exploration

In the first stage of exploration, Geological Survey of India (GSI, under Ministry of Mines) undertakes regional exploration of large areas to find out the broad availability of coal seams, geological structure, resource etc. on a systematic routine basis. In order to supplement and augment the efforts of the GSI, Ministry of Coal (MoC) is also undertaking regional exploration of coal on promotional basis. A central sector scheme of Promotional Exploration of Coal and Lignite has been introduced in 1989 and is continuing on plan-to-plan basis through Mineral Exploration Corporation (MECL), GSI and CMPDI. DGM (Nagaland & Assam) has also been inducted in the scheme. The reconstituted Committee-V (on Energy Minerals & Resources) of Central Geological Programming Board approves the programmes, coordinates and reviews the work. CMPDI acts as a nodal agency for disbursement of funds for Promotional Exploration besides carrying out technical supervision of MECL’s work in coal sector. The Promotional Exploration programme

for XI plan envisages to undertake 7.50 lakh metre of drilling (4.0 lakh metre in coal and 3.5 lakh metre in lignite) along with sub-components of creation of coal & lignite information system and CBM studies.

Besides, preparation of coal and lignite data base has also been undertaken during X Plan under funding from Ministry of Coal under promotional exploration which is continuing in the XI Plan as well.

3.1.2 Detailed Exploration

In the second stage, Detailed Exploration is carried out in potential areas identified through Regional/Promotional Exploration. Such blocks are taken up for detailed drilling and geological assessment to bring the reserves into Proved category to increase the confidence level. The Geological Reports of such detailed exploration form the basis of Mine Feasibility Studies/Mining Plans and formulation of Project Reports for mining and updation of National Coal Inventory. Detailed exploration in areas of coal PSUs is funded by respective companies whereas some of the Captive Mining block allocatees are also funding detailed drilling in blocks allotted to them. In addition, the MoC’s Plan scheme of Detailed Drilling in Non-CIL/Captive Mining Blocks aims at covering exploration of coal blocks in order to reduce time lag between allotment and development of blocks. The scheme is continuing on plan-to-plan basis. It is


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envisaged to undertake 13.50 lakh metre of drilling in Non-CIL blocks during the XI Plan through CMPDIL as well as through outsourcing.

3.1.3 Guidelines for conducting Detailed Exploration of captive coal blocks by the block allottees

All regionally explored/unexplored coal blocks already allotted or to be allotted can be taken up for detailed exploration by the allottees on their own as per these guidelines. The detailed guidelines are available in the website of Ministry of Coal.

3.2 Exploration Activities in 2010-11

3.2.1 Promotional Exploration A total of 1,55,000 metre of Promotional

drilling has been targeted in 2010-11. As against these targets, a total of 73,325 metre of promotional drilling has been carried out during the period April to December 2010 covering 22 coal and 9 lignite blocks. It is projected that about 30,000 metre of additional drilling would be achieved during the period Jan. - March, 2011.

3.2.2 Many boreholes drilled for promotional exploration have been logged geophysically and a total of 56,916 metre of multi-probe Geophysical Logging has been carried out during the period April to December 2010. It is projected that about 15,000 metre of additional logging would be achieved during the period Jan. - March, 2011. A total of 8 Geological Reports on coal (5) and lignite (3) exploration have been submitted during April to Dec. ’10. One Environmental study report has also been submitted during this period.

3.2.3 CMPDI and GSI have completed samples collection from eleven boreholes for CBM studies under the promotional exploration programme. The analysis of samples and preparation of one report is under progress. It is projected that samples from two more boreholes would be collected during the period January-March, 2011.

3.2.4 Under the project on creation of Integrated Coal Resource Information System (ICRIS) by CMPDI & SCCL, the work on map data capture is progressing. During the period April 2010 to December 2010, the map data capture of 1656 maps has been finalized and work completed. Integration of survey of 33 blocks has been brought to a single origin. Processing of data for creation of Geological models is in progress and 6 models of zones have been prepared. The consultancy for design & integration of database (RDBMS) for the ICRIS data has been awarded through tendering and work started from Nov. 2010. It is projected that, during January-March 2011, survey integration of 15 more blocks would be completed and RDBMS design structure would be generated. For similar project on creation of Integrated Lignite Resource Information System (ILRIS) by NLC, 15 number of Exploration reports were uploaded to server and geological modelling of 12 blocks have been completed during April 2010 to December 2010. Compilation of seasonal reports of CGM/Gujarat for creation of database is under progress.

3.2.5 Detailed Drilling in Non-CIL Blocks In 2010-11, a total of 1,84,555 metre of

detailed drilling has been targeted in Non-CIL/Captive Mining blocks. Out of it, 74,555 metre is targeted for CMPDI


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(departmentally) and 1,10,000 metre through outsourcing. During the period April 2010 to December 2010, a total of 1,75,499 metre of detailed drilling has been carried out in Non-CIL/Captive Mining blocks. Out of it, 43,563 metre has been drilled through departmental resources in seven blocks and 1,31,936 metre of drilling has been carried out through outsourcing in eleven blocks. It is projected that about 75,000 metre of additional drilling would be achieved in Non-CIL blocks during January-March, 2011.

3.2.6 CMPDI has decided to outsource seven more blocks, involving 4.37 lakh metre of detailed drilling, through open tendering. This includes four Non-CIL blocks involving 3.07 lakh metre of drilling. Bids have been received after re-tendering and tender is under finalization.

3.2.7 Coal Core Analysis Capacity Augmentation The scheme for expansion of coal core

analysis capacity by Central Institute of Mining and Fuel Research (CIMFR) for quality evaluation of coal cores explored from different region of India in XI plan has been approved by EFC, through CIL funding. Various meetings had been held and draft expansion proposals discussed. The final proposal submitted by CIMFR is under consideration CIL.

3.3 Coal Resources3.3.1 Inventory of Geological Resources of

Coal in India As a result of exploration carried out up to

the maximum depth of 1200m by the GSI, CMPDI, SCCL and MECL etc, a cumulative total of 276.81 billion tonnes of Geological Resources of Coal have so far been estimated in the country as on 1.4.2010. The details of state-wise geological resources of coal are given as under:

(in Million Tonnes) State Geological Resources of Coal

Proved Indicated Inferred TotalAndhra Pradesh 9257 9730 3029 22016Arunachal Pradesh 31 40 19 90Assam 348 36 3 387Bihar 0 0 160 160Chhattisgarh 12441 30230 4011 46682Jharkhand 39633 30992 6338 76963Madhya Pradesh 8505 11267 2216 21988Maharashtra 5360 2984 1964 10308Meghalaya 89 17 471 577Nagaland 9 0 307 316Orissa 21507 32074 12726 66307Sikkim 0 58 43 101Uttar Pradesh 866 196 0 1062West Bengal 11752 13030 5071 29853Total 109798 130654 36358 276810

(Source: Geological Survey of India)


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The next inventory of coal resources would be prepared in April 2011 and would be available on 1st May 2011.

3.3.2 Categorization of Resources The coal resources of India are available in

older Gondwana Formations of peninsular India and younger Tertiary formations of north-eastern region. Based on the results of Regional/ Promotional Exploration,

where the boreholes are normally placed 1-2 Km apart, the resources are classified into ‘Indicated’ or ‘Inferred’ category. Subsequent Detailed Exploration in selected blocks, where boreholes are less than 400 meter apart, upgrades the resources into more reliable ‘Proved’ category. The Formation-wise and Category-wise coal resources of India as on 1.4.2010 are given in table below:-

Formation Proved Indicated Inferred TotalGondwana Coals 109320 130564 35559 275443Tertiary Coals 478 90 799 1367Total 109798 130654 36358 276810

3.3.3 The Type and Category-wise coal resources of India as on 1.4.2010 are given in table below:-

(in Million Tonnes)Type of Coal Proved Indicated Inferred Total(A) Coking :--Prime Coking 4614 699 0 5313-Medium Coking 12573 11940 1880 26393-Semi-Coking 482 1003 222 1707Sub-Total Coking 17669 13642 2102 33413(B) Non-Coking:- 91651 116922 33457 242030(C) Tertiary Coal 478 90 799 1367Grand Total 109798 130654 36358 276810

3.3.4 Status of Coal Resources in India during Last 5 Years

As a result of Regional, Promotional and Detailed Exploration by GSI, CMPDI,

SCCL and MECL, etc, the estimation of coal resources in India has reached to 276.81 billion tonnes. The increase/upgradation of coal resources in the country during last 5 years is furnished in table below:

(in Million Tonnes) As on Geological Resources of Coal

Proved Indicated Inferred Total1.1.2006 95866 119769 37666 2533011.1.2007 97920 118992 38260 2551721.4.2007 99060 120177 38144 2573811.4.2008 101829 124216 38490 2645351.4.2009 105820 123470 37920 2672101.4.2010 109798 130654 36358 276810


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3.4 Lignite Reserves in India

Lignite reserves in India have been currently

estimated at around 39897.58 million tonnes. The state wise distribution of lignite reserves is as follows:-

As on 01.10.2010

State Area Geological Reserves (M.T.)

Tamilnadu & Pondy A(i) Neyveli Region 4150.00(ii) Jayamkondachola puram 1206.73(iii) Eastern part of Neyveli 562.32(iv) Veeranam 1342.45(v) Others 987.82(vi) Pondy (Bahur) 416.61B Mannargudi lignite field 23673.82C Ramanthapuram 52.71Total 32392.46

Rajasthan 4804.02Gujarat 2662.75Jammu & Kashmir 27.55Kerala 9.65West Bengal 1.15Total 39897.58


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Chapter-4

Coal Mining Policy and Major Initiatives

4.1 Competitive Bidding

4.1.1 With the progressive allocation of coal blocks, the number of coal blocks available for allocation is declining, while the number of applicants per block in increasing, as the demand for coal keeps increasing. This has made selection of an applicant in respect of a block difficult and vulnerable to criticism on the ground of lack of transparency and objectivity.

4.1.2 While efforts are on hand to continuously add blocks to the captive list, it is also expected that the demand for blocks would remain far ahead of supply. Therefore, there is an urgent need to bring in a process of selection that is not only objective but also demonstrably transparent. Auctioning through competitive bidding is one acceptable selection process.

4.1.3 With a view to bringing in transparency, the Mines and Minerals (Development and Regulation) Amendment Act, 2010 for introduction of competitive bidding system for allocation of coal blocks for captive use, has been passed by the both Houses of Parliament and it has been notified in Gazette of India (Extraordinary) on 9th September, 2010. The Amendment Act seeks to provide for grant of reconnaissance permit, prospecting licence or mining lease in respect of an area containing coal and

lignite through auction by competitive bidding, on such terms and conditions as may be prescribed. This, would however, not be applicable in the following cases:-

• where such area is considered forallocation to a Government company or corporation for mining or such other specified end use;

• where such area is considered forallocation to a company or corporation that has been awarded a power project on the basis of competitive bids for tariff (including Ultra Mega Power Projects).

The Government is now examining the modalities for preparation of the guidelines/legal framework for conducting the competitive bidding of coal and lignite blocks.

4.2 Formation of Empowered Committee

The Government is considering the proposal to utilize the services of Empowered Committee of Secretaries constituted for International Coal Ventures Limited (ICVL) the consortium of i.e. SAIL, NTPC, CIL, RINL to consider the investment abroad proposals of CIL which are beyond CIL’s financial powers of Rs. 1,000 crore. The Committee of Secretaries has recommended the proposal. In this regard a draft CCEA Note was circulated to the concerned Ministries/Departments for comments.


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The proposal/CCEA Note of Formation of Empowered Committee for CIL has been approved by Government and an order to CIL has been issued on 9th September, 2009.

4.3 Guidelines for Mine Closure

With a review to restore mined out areas to the primary level to the extant possible, it has been decided to make it mandatory to prepare mine closure plans for which Ministry of Coal has issued guidelines for adoption by coal mine owners. This would help in addressing environmental issues related to coal mining. These guidelines are available on the website of this Ministry.

4.4 Draft Policy on Washery Rejects/Surplus Coal

The policy on disposal of surplus coal, by-products and middlings/rejects from captive blocks is under formulation in consultation with the Ministry of Law and Justice.

4.5 Status of Coal Mines (Nationalization) Amendment Bill 2000

The Cabinet Secretariat has notified the constitution of a new Group of Minister (GOM) under the Chairmanship of Hon’ble Finance Minister to consider issues related to Coal Mines (Nationalization), Bill, 2000. The GOM will make specific recommendation on policy measures regarding exploration and mining of coal, including the issues relating to pursuing the said Bill. The matter is being pursued for holding the

meeting of GoM at an early date.

4.6 Regulator for Coal Sector

A Cabinet Note on setting up of a Coal Regulatory Authority along with the Draft Bill has been circulated to various Ministries/Department for their comments. The comments from concerned Ministries/Department have now been received and the Draft Bill is being finalized. The Draft Bill would be placed before the competent authority for approval.

4.7 Captive Coal Mining Blocks

4.7.1 Under the Coal Mines (Nationalisation) Act, 1973, coal mining was mostly reserved for the public sector. By an amendment to the Act in 1976, two exceptions to the policy were introduced viz., (i) captive mining by private companies engaged in production of iron and steel and (ii) sub-lease for coal mining to private parties in isolated small pockets not amenable to economic development and not requiring rail transport.

4.7.2 The Coal Mines (Nationalisation) Act, 1973 was amended in June, 1993 to allow coal mining for captive consumption for generation of power, washing of coal obtained from a mine and other end uses to be notified by Government from time to time. As per the provisions in Section 3 (3) (a) (iii) of the Coal Mines (Nationalisation) Act, 1973, a company engaged in production of iron and steel, generation of power, production of cement, and production of syn-


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gas obtained through coal gasification (underground and surface) and coal liquefaction only can do coal mining in India for captive consumption.

4.7.3 The Central Government, a Government company (including a State Government company), a Corporation owned, managed and controlled by the Central Government can do coal mining without the restriction of captive use.

4.7.4 The allocation of coal blocks to private parties is done through the mechanism of an Inter-Ministerial and Inter-Governmental body called the Screening Committee. The Screening Committee is chaired by the Secretary (Coal) and has representation from Ministry of Steel, Ministry of Power, Ministry of Industry and Commerce, Ministry of Environment and Forest, Ministry of Railways, Coal India Limited, CMPDIL and the concerned State Governments.

4.7.5 There are 229 (148 existing and 81 newly identified) coal blocks for allocation to specified end users and Govt. companies on display on the website of Ministry of Coal. 208 coal blocks have so far been allocated to eligible companies.

4.7.6 So far, production has commenced in 26 coal blocks (14 private and 12 public) and the production from these coal blocks for the year 2009-10 was 35.313 million tonnes and for the year 2010-11(upto December, 2010 Prov.) was 26.921 million tonnes as reported by the Coal Controller’s Office.

4.7.7 As regards allocation of small and isolated blocks are concerned, a new policy is being formulated in consultation with the Ministry of Law and Justice for allocation of such blocks.

4.7.8 Initiatives taken by the Ministry for expediting production from captive blocks were as follows:-

(a) Frequent and regular meetings of Screening Committee.

(b) Allowing disposal of coal produced during development phase through CIL subsidiaries, who will procure it at a transfer price to be determined administratively.

(c) Taking bank guarantee for adhering to the schedule as per the specified milestones.

(d) Laying bench mark time lines for achieving various milestones from allocation to coal production, advance submission of development schedule by the allocate and cancellation of allocation for non-adherence.

4.7.9 Sector-wise allocation of coal blocks

So far 208 coal blocks have been allocated to various public/private sector companies including Ultra Mega Power Projects of 4000 MW each being set up in Madhya Pradesh, Orissa and Jharkhand. One coal block, namely Bankhui to M/s Sakhigopal Integrated Power Company Ltd. (SPV of first additional Orissa UMPP) in the State of Orissa was allocated on 21.06.2010 during 2010-2011 (upto February, 2011).


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4.7.10 Identification of new coal blocks

In consultation with CIL and NLC, 47 new coal blocks with geological reserves of about 17721.52 million tonnes and 38 lignite blocks with geological reserves of about 6240.34 million tonnes have been identified. There are 24 remaining coal blocks with geological reserves of about 7262.66 million tonnes from the earlier list, which have remained unallocated. The CIL and NLC have been asked to update the lists before taking decision regarding earmarking these blocks for allocation.

4.7.11 Ultra Mega Power Projects

Ministry of Power proposes to set up four Ultra Mega Power Projects (UMPP) with capacity of 4000 MW each, through tariff based competitive bidding. The Ministry of Coal has allocated Moher, Moher-Amlori Extension and Chhatrasal coal blocks (GR 750 MT) for the proposed UMPP to be set up at Sasan in Madhya Pradesh; Meenakshi, Meenakshi-B and Dip side of Meenakshi coal blocks (geological reserve 885.24 MT) for the proposed UMPP to be set up in Orissa; Kerandari BC coal block (geological reserve 972 MT) for the proposed UMPP to be set up in Jharkhand and Puta Parogia (geological reserve 692.16 MT) and Pindrakhi (geological reserve 421.51 MT) coal blocks for the proposed UMPP to be set up in Chhattisgarh and Bankhui (geological reserve 800 MT) for the proposed first additional UMPP to be setup in Orissa.

4.8 Technological Initiatives

Emphasis is laid on technology development through adoption of State of the Art Technologies for both underground and opencast operations for higher coal production, productivity and improved safety. Deployment of high capacity shovels and dumpers, surface miners etc. along with matching ancillary equipments and coal handling facilities for opencast mines is being practiced in various PSU coal companies.

Deployment of draglines in conjunction with shovel dumper combination is a time tested method in major projects with multiple seam extraction and high stripping ratios. Crusher conveyor technology for coal as well as overburden is also in use for quite some time in some of the opencast mines in these companies.

Of late, deployment of surface miners for selective mining, sizing and avoiding cyclic drilling and blasting operations in coal for improved productivity is assuming importance. In addition to the outsourced operations using surface miners, PSU coal companies are also procuring the same for departmental operations. Radar based monitoring of slope stability of benches in open cast mines is being adopted for improved safety of operations. GPS based truck despatch monitoring systems are also being adopted for improving productive use of dumpers.

Controlled blasting in opencast mines is being practiced to minimise ground


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vibrations. Coal handling plants with silos and rapid loading systems are being developed in all major open cast mines.

Similarly, planning new underground mines for adoption of mass production technologies like continuous miners and longwall equipments is continuing. Deployment of bolter miners in conjunction with longwall operations for faster gate road drivage is also assuming significance in mechanisation of workings. Planning longwall mines with bigger blocks and longer face lengths is becoming possible due to faster rate of gate road preparation.

Adoption of continuous miners, side discharge loaders and load haul dumpers

and conveyors for mechanising the underground operations wherever it is techno-economically feasible is being taken up. Man riding systems are being installed in a number of underground mines to avoid manual walking to reach the workings.

Recently, CIL and SCCL have adopted high wall mining technology to extract coal from the high walls of open cast mines which otherwise would remain sterilised. This technology provides extraction of coal using high wall mining machines from the open cast benches when the economic extraction of coal from open cast operations is not feasible. This technology is widely in use in USA.

Longwall Shearer in Operation


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For lignite mines specialised mining equipment comprising bucket wheel excavators with high capacity conveyor systems and spreaders are being deployed for extraction of both overburden and lignite.

4.9 Clean Coal and Washery Capacity

4.9.1 Coal washing is an important area from economic and environment point of view. A number of studies carried out earlier have clearly highlighted benefits of using washed coal in improving the economics of power generation and also reduction of emissions. The directive of Ministry of Environment & Forests restricts the use of coal containing more than 34% ash content in power stations located 1000 km away from pit heads. With this as a driver, the numbers of power utilities have shown inclination to use washed coal for power generation and also coal washing is one of the clean coal technologies prior to combustion of coal.

4.9.2 Coal India is heading in a big way for Coal Beneficiation of all types of coals. The present installed capacity of washery for thermal coal of about 110 Mt per annum is envisaged to reach about 250 Mt per annum in the next five [5] years time.

4.9.3 To meet the demand supply gap of washed coal, guidelines for setting up of coal washeries on Public Sector Coal Company’s land have been issued by Ministry of Coal in September’05. Accordingly, subsidiary coal companies of CIL are extending necessary assistance to facilitate setting up of coal washeries

on their land to the private operators.

4.9.4 CIL has also decided in principle to wash all inferior grade coal linked to non-pit head power stations by setting up washeries with the state-of-the art technology on Build-Operate-Maintain [BOM] concept where CIL will provide the capital funding and other infrastructure facilities to the BOM operator. Further, it has been decided that all new opencast projects of 2.5 Mt and above capacity, which are not linked to pithead power stations should be designed with integrated washery.

4.9.5 CIL has already decided to set up 20 [twenty] washeries by the end of XI five years plan in its various subsidiaries with total installed capacity of 111 Mty, out of which 2 [two] washeries of total 6 Mty are proposed under “Turn-key” execution and the rest 18 [eighteen] are on BOM concept under which the capital funding and other infrastructural facilities will be arranged by CIL/subsidiaries company. Tenders for seven washeries [four of BCCL, two of MCL and one of CCL] have already been floated. Tender evaluation of the four [4] washeries out of seven [7] washeries for which the tender had been floated have been completed. Letter of Acceptance [LoA] in respect of one washery i.e Madhuband washery, BCCL has been issued to M/s HEC, Ranchi. LoA for other three [3] washeries will be issued after the approval of competent authority.

Meanwhile to expedite the process of tender evaluation for balance 11 washeries a Common Centralized Request for Qualification (CCRFQ) document was


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prepared and tender was floated for short listing the probable qualified bidders for each project. The lists of short listed qualified bidders have been issued by CMPDI on behalf of CIL to the respective bidders and subsidiary companies.

Subsequently revised RFP has been also prepared and the same has been approved by CIL.

Out of the 20 washeries, Conceptual reports for 19 washeries have been completed. The tender for four [4] washeries under BOM concept and one on turn-key mode (i.e Dhori washery) are likely to be floated by the end of Mar.’2011 by the subsidiary companies.

4.9.6 Two [2] nos. of dry deshaling plants are also under implementation by CMPDI under CIL R&D grant. Tender for Radiometric dry deshaling plant is likely to be floated shortly, whereas the deshaling based on All-mineral All-air Jig is likely to be floated by 31st Mar, 2011.

4.10 Coal Bed Methane (CBM)

4.10.1 New area of clean coal technologies like Coal Bed Methane (CBM) and Coal Mine Methane (CMM), Underground Coal Gasification (UCG) and Coal Liquefaction are under focus and Government is taking all the necessary steps for development of these areas within the existing legal framework.

Overview of a Coal Washery


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4.10.2 CBM is one of the potential greenhouse gases and is invariably associated with coals during their formation. CBM is in adsorbed state on the coal surface and possess a potential threat from safety angle during mining operation. If extracted separately, it forms a supplementary source of energy. In view of the abundant resource of coal in the country, there is a significant scope for commercial development of CBM. Methane associated with virgin coalbeds is conventionally termed as Coalbed Methane. Similarly, extraction of methane from working mines is termed as Coal Mine Methane (CMM).

4.10.3 Consequent to the formulation of CBM Policy in 1997, Govt. of India has so far allotted 33 CBM blocks to various operators for exploration and exploitation of CBM in four rounds of bidding.

CBM is jointly managed by Ministry of Coal and Ministry of Petroleum and Natural Gas. CMM related activities are being addressed by Ministry of Coal separately.

4.10.4 An Expert Committee under the chairmanship of Advisor (Projects), Ministry of Coal is finalizing the issues related to conducting simultaneous coal mining and CBM operations.

4.10.5 Implementation of CBM Demonstration Project

CMPDI has successfully implemented an UNDP/GEF/GoI funded demonstration project “Coalbed Methane Recovery & Commercial Utilisation” at Moonidih mine of BCCL, which has proved efficacy

of CMM production in Indian geo-mining conditions. Recovery of CBM gas from two wells has been established in May’2008 and Feb’2009 respectively. Efforts are being made for recovery of gas through dewatering in third well where three potential seams have been stimulated. The recovered gas is being utilized to generate electricity from indigenous gas based generators, which is continuing since June’2008.

4.10.6 CBM Specific Data Generation

CMPDI is carrying out studies related to “Assessment of Coalbed Methane Gas-in-Place Resource of Indian Coalfields/Lignite fields” through boreholes being drilled under Promotional Exploration (XI Plan period) under Promotional Exploration (PRE) funding amounting to `8.59 crore. This study will enlarge the CBM resource base of the country and facilitate delineation of more blocks for CBM development.

A total of 50 boreholes (30 by CMPDI and 20 by GSI) are to be taken up for CBM related studies during XI plan period. During this plan period upto 2009-10, so far a total of 16 boreholes, drilled in different coalfields (CMPDI-13 & GSI-3), have been tested for CBM related studies.

During 2010-11 CBM related studies have been carried out in 11 boreholes (CMPDI-8 and GSI-3) located in different coal/lignite fields.

4.10.7 CIL R&D Project on CMM

CMPDI has taken up a CIL R&D project


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for delineation of prospective CMM blocks in BCCL and CCL areas of CIL and preparation of data dossier for 1 or 2 most prospective and commercially viable CMM blocks.

5 prospective CMM blocks have been identified in BCCL and CCL areas and an Expression of Interest (EOI) for identification of suitable collaborator for commercial development of CMM has been floated. Consequently, a Tender Document has been prepared by CMPDIL and is under approval. The Tender for commercial CMM development is likely to be floated during 2010-11.

4.10.8 CBM specific data generation in the projectised areas of large opencast mines:

Project proposals for assessment of CBM potential related to large opencast mines in Moher Sub-basin of NCL, Singrauli Coalfield and Korba Coalfield has been taken up by CMPDI to assess the CBM resource and explore possibility of degasifying the area.

Drilling for generation of CBM specific data in the dip side of projectised area in Moher sub-basin and Korba coalfield have been concluded and the desorption studies were carried out during the field operation through CMPDI’s in-house facilities. CBM specific analytical tests have been taken up to assess the potentiality of the identified area for commercial development of CBM. The assessment report would be submitted by February 2011.

4.10.9 CIL-ONGC Collaborative Project on CBM

4.10.9.1 Jharia CBM Block

As per Govt. of India CBM policy, consortium of CIL and ONGC has been allotted 2 blocks on nomination basis – one each in Raniganj and Jharia coalfields and has entered into a contract with Govt. of India for development of coalbed methane. The Govt. of Jharkhand granted the Petroleum Exploration License (PEL) for Jharia CBM block in August’2003. Slimhole drilling by CMPDI in the block commenced from Dec.’ 04 and all the 8 slimholes involving 8703.65 metre have since been completed. A report on assessment and compilation of data generated during slimhole drilling has been submitted by CMPDI in Feb.’08. Further, ONGC completed drilling of 2 exploratory wells and the requisite tests are being carried out. ONGC has carried out 2 Horizontal Multilateral in-seam drilling in the CBM block.

During the year, production testing in two exploratory wells is going on and dewatering of multilateral wells is also in progress.

ONGC has submitted the Final Development Plan for part area (Parbatpur Sector) within Jharia CBM block in the office of Directorate General of Hydrocarbons (DGH) in Oct.’09. DGH has advised ONGC to submit the revised Development Plan for the entire Jharia CBM Block.


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The sale of incidentally produced gas from Jharia CBM block is going on in line with the approval of the Govt.

4.10.9.2 Raniganj CBM Block

The Govt. of West Bengal granted the Petroleum Exploration License (PEL) for Raniganj CBM block in June’04. Slimhole drilling of the identified boreholes was taken up on 07.03.06 and drilling in all the 8 slimholes involving 7853.50 metre has been completed by CMPDI. A report on assessment and compilation of data generated during slimhole drilling submitted by CMPDI in March’09.

ONGC has completed drilling of exploratory well in the CBM block during the period and the requisite tests are going on. CMPDI officials were associated in the activities undertaken by ONGC.

4.10.10 Establishment of CBM/CMM Clearinghouse

A CMM/CBM clearinghouse has been established at CMPDI, Ranchi under the aegis of Ministry of Coal and United States Environmental Protection Agency (US EPA) on 17th Nov.’08. The clearinghouse has been functioning as the nodal agency for collection and sharing of information on CMM/CBM related data of the country and help in the commercial development of CMM projects in India by public/private participation, technological collaboration and bringing financial investment opportunities. An International Workshop was also organized at CMPDI on 17th & 18th Nov.’08. The experts of National/ International fame in the field

attended the workshop.

As envisaged in the work programme of the clearinghouse, the clearinghouse website is being maintained and updated on regular basis. Close co-ordination is being maintained with USEPA for development of CMM/VAM etc and for the purpose a team of CIL/CMPDI official visited operational CMM sites in US during June 2010 for getting 1st hand experience in this field. The said visit was facilitated by USEPA. Further, a team of CIL/CMPDI officials attended CMM conference in US during Oct. 2010 under Clearinghouse funding.

4.11 Underground Coal Gasification (UCG)

In India, UCG was taken up in mid 1980’s by ONGC and CIL under technical collaboration with erstwhile USSR. Although one lignite block “Merta Road” in Rajasthan was found suitable, pilot appraisal could not be taken up due to apprehension of contamination of ground water.

Subsequently, consequent to signing of MoU between CIL & ONGC in November 2005 for taking up pilot scale studies for UCG, CMPDI prepared data packages for 5 prospective UCG sites. Out of the five sites, one Kasta block in Raniganj coalfield was selected by the consultant engaged by ONGC. As required, drilling of 12 nos. of slimholes for generation of additional data has been completed in Kasta block in Nov. 2009 for examining possibility of taking up pilot scale UCG project. The


30

analysis of the samples generated through the drilling has been taken up. A draft assessment report has been prepared and submitted to ONGC for their examination in Dec, 2010.

In addition, 2 more blocks within the CIL area namely Kaitha in Ramgarh CF within CCL command area and Thesgora-C in Pench Valley CF within WCL command area have been identified for development of UCG. An Expression of Interest (EOI) for identification of suitable developer for commercial development of UCG was invited. Consequently, a Tender Document has been prepared by CMPDI and was floated on 27.12.10 for these two identified blocks.

4.12 Revision of Rates of Coal Royalty on Coal/Lignite

A Study Group has been constituted on 04.02.2010 for revision of royalty rate on coal and lignite. With a view to consult all the stake holders, prescribed questionnaires have been prepared on the subject matter and circulated to the major coal producers/consumers and coal bearing State Governments for their views/comments. The comments from most of the State Governments/private organizations/Ministries/ Departments have been received. The matter was discussed in the 2nd meeting of the Royalty Committee held on 03/02/2011 and it has been decided to hold a stakeholders’ meeting.

Royalty paid by CIL – (` in lakh)Year West

BengalJharkhand Orissa Madhya

PradeshMaha- rashtra

Chhatis- garh

Uttar Pradesh

2007-08 900.95 90966.08 64536.75 83176.26 42676.13 76052.61 10436.872008-09 943.96 106721.67 77307.39 95017.68 50179.87 89418.70 11494.772009-10 959.55 114234.46 85962.81 98123.75 51407.58 94307.17 14929.16

Royalty Paid by SCCL - (` in lakh)

Year Royalty Paid to Govt. of Andhra Pradesh

2007-08 47,902.002008-09 56,069.002009-10 63,713.00

Royalty paid by NLC - (` in lakh)

Period Amount 2007-08 126592008-09 137722009-10 157262010-11 (upto December, 2010) 11812Provisional for the period January, 2011 to March, 2011

3836

4.13 Maharatna status to CIL

A proposal for grant of Maharatna status to Coal India Limited (CIL) is under consideration in consultation with

Department of Public Enterprises. The proposal was considered by the Inter- Ministerial Committee (IMC) headed by Secretary, DPE in its meeting held


31

on 08.02.2011. The IMC has noted that Coal India Limited fulfilled the criteria laid down for grant of Maharatna status and has recommended the proposal for grant of Maharatna status to CIL. The matter is under consideration of the Apex Committee.

4.14 Navratna status to NLC

The proposal for grant of Navratna status to NLC has been considered by the Inter-Ministerial Committee (IMC) in its meeting held on 14.09.2010. The committee has noted that NLC fulfilled the criteria for grant of Navratna status and has recommended grant of Navratna status to NLC subject of the condition that requisite number of non-official Director would be appointed on its Board. The matter is under consideration of the Apex Committee.

4.15 Listing of CIL

Coal India Limited has been granted Navratna status with effect from 24th October, 2008. At the time of awarding the Navratna status to CIL, the Government have put the condition that the listing of shares of CIL should be done in three years. The listing of CIL is expected to infuse better Corporate Management in the company and listing of CIL is expected to infuse better Corporate Management in the company and considering its performance, CIL standing in market will also improve, including improved valuation of the company. Accordingly, CIL is now a listed company and its shares are listed in Bombay Exchange (Bombay Stock Exchange Limited) and National

Stock Exchange (National Stock Exchange of India Limited). Disinvestment of 10% paid up equity in CIL, IPO has been launched on 18th October, 2010 and closed on 21st October, 2010 for the public investors. The CIL IPO was highly successful and was oversubscribed 15.3 times and the Government had generated fund of `15200 Crores (Approx.) through the said IPO.

4.16 Revival of Sick PSUs

Eastern Coalfields Limited (ECL) : Revival plan of Eastern Coalfields Limited was approved by the Government of India on 5.10.2006. As per approved plan, net worth of the Company was slated to become positive in 2009-10 which did not fructify. Due to delay in implementation of various projects, it is apprehended that company will not be able to come out of BIFR in 2010-11 as well. A review hearing was held on 22.11.2010 by the BIFR. As advised by BIFR, the company has prepared Draft Modified/Revised Proposal for revival of Eastern Coalfields Limited which was discussed in the joint meeting held on 22nd December, 2010 for its further consideration/acceptance. As on 31st March, 2010 the negative networth of the company was ` 6015.55 crore. The data in regard to ECL is as follows :

Profit 2009-10 - ` 333.40 Cr. 2010-11 - ` 142.81Cr. (Loss) (upto Dec. 2010)


32

Manpower 2009-10 - 85617 2010-11 - 82090 (upto Dec. 2010 ) Bharat Coking Coal Limited (BCCL): A

revival plan for BCCL was submitted to BRPSE and BIFR. Both BRPSE and BIFR have accorded their approval to

the revised scheme and the Government order conveying the sanction has been issued to CIL/BCCL on 25.2.2010. Data pertaining to above para is as follows:

Profit Net profit incl. PPA 2009-10 - ̀ 794.19 cr. Manpower 2009-10 - 71838


33

Chapter-5

Planning

5.1 Coal Demand

The Working Group for Coal & Lignite for formulation of XI Plan has assessed the coal demand of 731.00 MT in the terminal year XI Plan i.e. 2011-12 which was, however, revised to 713.24 MT by the Planning

Commission during Mid-Term Appraisal in Sept. 2009. The All India coal demand for the year 2009-10 (Actual), 2010-11 ( BE & RE ) have been assessed as 582.25 MT, 656.31 MT and 624.78 respectively. The Sector wise break-up is as under:-

Sector 2006-07Actual

2007-08Actual

2008-09Actual

2009-10Actual

2010-11 BE

2010-11 RE

2011-12Original

Target

2011-12Revised as per MTA

I))Coking CoalSteel/Coke Ovens & Cokeries

17.30 16.99 16.58 15.92 17.92 16.80 23.78 26.02

Steel (Import) 17.88 22.03 21.08 23.47 32.59 23.20 44.72 42.48Sub-Total Coking 35.17 39.02 37.66 39.39 50.51 40.00 68.50 68.50II) Non-Coking CoalPower Utilites (Gen.Req.)

307.92(1.61)*

332.40(1.45)*

362.93(1.23)*

380.13(0.68)*

442.00 405.00 483.00 473.00

Captive Power 28.13(1.64)*

29.31(1.55)*

33.74(1.38)*

38.47(1.53)*

44.00 40.00 57.06 47.06

Cement 19.67 21.27 18.85 20.80 30.00 25.98 31.90 33.35Steel DR 17.47 20.92 19.78 22.89 28.80 28.80 28.96 28.96BRK & others 55.51 61.37 77.07 88.82 61.00 85.00 61.58 62.43Sub-Total Non-Coking

428.70(3.25)*

465.27(3.00)*

511.37(2.61)*

542.86(2.21)*

605.80 584.78 662.50 644.74

Grand Total (I+II): 463.87(3.25)*

504.29(3.00)*

549.03(2.61)*

582.25(2.33)*

656.31 624.78 731.00 713.24

* Middlings

5.2 Coal Supply and Demand

It is estimated that at the end of terminal year of 11th Five Year Plan (2011-12), the coal demand would be about 713 Million Tonnes, whereas the indigenous availability

would be about 630 Million Tonnes. Therefore, there is likely to be a gap of 83 Million Tonnes, which is required to be met through imports. The details are given below:-


34

( in Million Tonnes)Source 2008-09

Actual2009-10Actual

2010-11BE

2010-11RE

XI Plan Proj. 2011-12

CIL 401.44 415.88 460.50 433.50 486.50SCCL 44.54 49.37 47.05 50.50 47.00Others 44.03 49.25 65.87 52.05 96.41Total indigenous supply 490.01 514.50 573.42 536.05 629.91Demand 550.00 597.98 656.31 624.78 713.24Gap to be met through imports 59.98 83.48 82.89 88.73 83.33Total Import (a+b) 59.00 73.25 82.89 88.73 83.33

5.3 Coal Production

Subsidiary wise coal production target of CIL for the XI Plan period (2007-12) are

given below. Actual production of CIL for 2007-08, 2008-09, 2009-10 and 2010-11 (BE) and 2010-11 (Actual) upto December, 2010 is as under:-.

( in Million Tonnes)Company 2007-08

(Actual)2008-09 (Actual)

2009-10(Actual)

2010-11 (BE)

2010-11 (Actual)

upto Dec.10

2011-12Target/

BE

2011-12 (Proj) As per

XI Plan

2011-12 Revised as per MTA

ECL 24.06 28.13 30.06 33.00 20.69 33.00 46.00 36.00BCCL 25.22 25.51 27.51 29.00 20.41 30.00 30.00 30.00CCL 44.15 43.24 47.08 50.00 30.89 51.00 78.00 54.00NCL 59.62 63.65 67.67 72.00 45.96 68.50 70.00 76.00WCL 43.51 44.70 45.74 46.50 31.24 45.50 45.00 47.00SECL 93.79 101.15 108.01 112.00 79.54 112.00 111.00 117.00MCL 88.01 96.34 104.08 116.75 70.15 106.00 137.00 125.10NEC 1.10 1.01 1.11 1.25 0.64 1.00 3.50 1.40CIL 379.46 403.73 431.26 460.50 299.52 447.00 520.50 486.50SCCL 40.60 44.55 50.43 46.00 36.33 51.00 40.80 47.00Others 36.94 44.48 51.31* 65.87 33.56 56.00 118.70 96.41Total 457.00 492.76 532.99 572.37 369.41 554.00 680.00 629.91

* Excluding Meghalaya.

5.4 Lignite Production and Power Generation

The actual Production Performance in 2009-10, the targeted figures (BE & RE) of

2010-11 and actual up to December 2010, provisional for the period January 2011 to March 2011 and targeted figure for the year 2011-12 of lignite production and power generation are given as follows:-

Planning

35

Year Lignite (Million Tonnes) Power Generation (Million Units)

2009-10 (Actual) 22.338 17656.042010-11 (Target) (BE) 24.14 18758.002010-11 (Target) (RE) 21.90 16686.002010-11 Actual upto December 2010 16.415 12730.51Provisional for the period January 2011 to March 2011

5.48 3955.49

2011-12 (Target) (BE) 23.95 18576.00

5.5 Production Performance of NLC

Sl No

Product 2006-07 2007-08 2008-09 2009-10 2010-11 (Apr.2010 to Dec.2010)

1 Lignite (MT) 21.01 21.59 21.31 22.34 16.412 Power Gross (MU) 15786.58 17456.89 15767.98 17656.04 12730.51

5.6 Projection of OMS ( Figures in Tonnes)

Year Coal India Ltd. Singareni Collieries Co. Ltd.UG OC Overall UG OC Overall

2008-09 (Actual)

0.76 8.95 4.09 1.05 10.60 3.01

2009-10 (Actual)

0.78 9.51 4.47 1.08 10.71 3.36

2010-11 (BE) 0.83 10.62 4.87 1.24 11.33 3.582010-11(RE) 0.80 10.17 4.70 1.08 11.63 3.492011-12 (Proj.) 0.84 10.73 4.92 1.20 13.01 3.80

5.7 Capital Outlay To achieve the projected coal production

in XI Plan, Working Group in Coal & Lignite for XI Plan has estimated a total capital outlay of `34259 Crore for CIL, SCCL and NLC. Capital Outlay for the departmental schemes of the Ministry of Coal has been estimated at `7702 Crore. Thus the total Capital Outlay works out

to `41961 Crore. However, the Ministry of Coal has proposed for a total Capital Outlay of `43476.37 Crore. The Planning Commission has approved total capital outlay of `37,100.00 Crores. The details of Capital Outlay for 2009 – 10 (Actual), 2010–11 (BE), (RE), Actual upto Dec. 2010, 2011-12 (BE) and XI plan revised as per MTA is as follows :-


36

Company XI FYP Proposed by MoC

Ap-proved

by Plan-ning

Com-mission

2009–10 (Actual )

2010-11 (BE)

2010-11 (RE)

2010-11 (Actual

upto Dec. 2010 Prov.

2011-12 (BE)

XI Plan Revised as per MTA

Coal India Limited 17390.07 17390.00 2809.99 3800.00 +

6000.00

3615.00 +

1000.00

1547.42 4220.00 + 6000.00.

16090.68

SCCL 3340.30 3340.00 888.67 1334.93 1124.57 420.64 2804.30 3802.07NLCMines 2826.00 2826.00 331.43 313.94 120.83 55.68 104.58 2334.39Power 12218.00 12218.00 1031.67 1669.52 1323.82 828.19 1753.97 6140.61Total NLC 15044.00 15044.00 1363.10 1983.46 1444.65 883.87 1858.55 8475.00Sub-Total (Coal PSUs)

35774.37 35774.00 5061.76 7118.39 6184.22 2851.93 8882.85 28367.75

Departmental SchemesScience & Technology (S &T)

100.00 75.35 11.62 10.00 11.90 5.00 10.62 75.35

Regional Explora-tion

383.50 164.02 30.39 70.00 98.64 28.47 62.17 305.82

Detailed Drilling 893.89 472.94 60.00 110.00 159.98 44.30 99.22 523.08Env. Mgmt & Subsidence Control

4642.88 155.34 0.00 30.25 30.00 0.00 50.58 1713.75

Conservation & Safety in coal mines

692.95 170.67 135.00 135.00 148.00 0.00 121.11 690.75

Development of transport infrastructure in coalfield areas

972.65 277.63 0.00 22.00 22.00 0.00 22.00 930.92

Coal Controller’s Office

1.13 1.22 0.26 0.25 0.00 4.62 0.25 0.00

Information Technology

15.00 8,84 0.02 0.50 0.00 9.14 0.45 0.00

North-Eastern Region

0.00 0.00 0.00 22.00 0.00 0.00 26.60 16.13

Tribal Sub Plan 27.00Sub-Total (Depart-mental Schemes)

7702.00 1326.00 237.29 400.00 470.52 91.53 420.00 4225.80

Grand Total - MoC 43476.37 37100.00 5299.05 7518.39 +

6000.00

6654.74 +

1000.00

2943.46 9302.85 +

6000.00

32593.55

Planning

37

5.8 Plan Expenditure

The plan expenditure for 2009-10, BE/RE

2010-11 along with actual expenditure up to the end of December 2010 and BE 2011-12 are furnished in the table below:-

Year ` In Crores2009-10 Actual 1363.102010-11 (BE) 1983.462010-11 (RE) 1444.652010-11 (Provisional) upto December 10 883.87Provisional for Jan. 11 to March 2011 560.782011-12 BE 1858.55


38

Chapter-6

Coal and Lignite Projects

6.1 Coal Projects Appraisal & Monitoring

6.1.1 On being conferred the ‘Navratna’ status, Coal India Limited (CIL) is now empowered to sanction/approve and implement all its projects including those which are beyond the delegated powers of the Boards of its subsidiaries. Being conferred the status of “Mini Ratna” Board of Directors of Northern Coalfields Limited (NCL), Western coalfields Limited (WCL), South Eastern Coalfields Limited (SECL), Mahanadi Coalfields Limited (MCL) and Central Coalfields Limited (CCL) are empowered to approve projects costing up to Rs.500 crores. The Board of Directors of Central Mine Planning & Design Institute Limited (CMPDIL) is empowered to approve projects costing up to Rs.300 crore as the company comes under the Mini Ratna category-II. The Board of Directors of Eastern Coalfields Limited (ECL) and Bharat Coking Coal Limited (BCCL) can approve coal projects up to Rs.20 crores. Board of Directors of Singareni Collieries Company Limited (SCCL) is also empowered to approve coal projects up to Rs.500 crores. Projects of SCCL costing above Rs.500 crores are approved by the Govt. through EFC/PIB and CCEA. Environmental clearance is mandatory before the project proposal is posed to Cabinet Committee on Economic Affairs for approval. NLC is currently a Mini Ratna company with delegated

powers to set up projects upto Rs.500 crore. However, their proposal for Navratna status is under advance stage of consideration.

6.1.2 Coal projects are monitored in the coal companies at colliery level, area level and HQ level. Remedial actions, wherever warranted, are taken. Quarterly Project Monitoring Reprots of projects costing Rs.20 crore and above are submitted by all companies to this Ministry as well as Ministry of Programme Implementation. In the Ministry of Coal, major coal projects costing above Rs.100 crore are monitored at the level of Secretary (Coal) on quarterly basis. In this meeting representative from Planning Commission, Department of Expenditure, Ministry of Statistics & Programme Implementation and MoEF also participate. Such meetings are taken on the basis of inputs furnished by the companies indicating various problems encountered by them in implementation of projects under their jurisdiction and command. Based on the decision taken in the review meetings, appropriate follow up action is taken both in the Ministry of Coal and by the coal companies concerned. This apart, whenever coal companies approach the Ministry for extending Governmental support for resolution of any pending issues affecting implementation of coal projects, the matter is taken up by the Ministry at the appropriate level with the concerned authorities.


39

6.2 Coal and Lignite Projects

6.2.1 During the period from 01.04.2010 to 31.12.2010, no project has been sanctioned by Government.

6.2.2 During the year, PIB meeting for Thermal Power Project at Neyveli (1000 MW) was held on 10th November 2010 with the PIB

recommending this project proposal for consideration of CCI for the investment decision.

6.2.3 List of new projects / RCE/ RPR sanctioned by Coal India limited and its subsidiary companies under their delegated powers from 01.04.10 to 31.12.10 are given as under:

A. Expansion project sanctioned by Coal India Ltd from 01.04.2010 to 31.12.2010

B (i) New project sanctioned by coal companies from 01.04.2010 to 31.12.2010

Sl. Projects Sub Date of Approval Sanc. Capacity (Mty) Sanc. Capital (` Crs)1. Gevra Expn. OC SECL 31.05.10 10.00 1008.12

Sl. Projects Sub Date of Approval Sanc. Capacity (Mty) Sanc. Capital (` Crs)1. Hansdiha Patch II

(Sch) OCECL 19.05.10 1.50 16.57

2 Kistaram OCP SCCL 01.11.2010 2.00 242.29(ii) No RCE / RPR has been sanctioned by coal companies from 01.04.2010 to 31.12.2010

Opencast Mining Operations


40

6.2.4 The number of mining projects of CIL and SCCL costing `2 crores and above

sanctioned since nationalization till 31.12.2010 is as under:-

Sub Projects costing Sanc. Capital(` Cr.)*

Sanc. Capacity(Mty) *

More than ` 100 Cr.

` 20 to 100 Cr.

` 2 to 20 Cr.

Total

ECL 13 17 93 123 5587.63 70.58BCCL 04 09 90 103 2123.68 43.09CCL 19 22 63 104 5998.00 118.25NCL 14 09 03 26 8695.01 75.60WCL 07 62 79 148 5358.25 79.65SECL 17 59 73 149 10897.00 154.43MCL 20 23 17 60 5867.10 198.63NEC 00 04 00 04 172.69 1.20CIL 94 205 418 717 44699.36 741.43SCCL 15 58 67 140 8595.68 113.96

(*Excluding Capacity & Capital of Merged & Completed-Merged projects)

6.2.5 As on 31.12.2010, out of total 717 mining projects in CIL, costing ` 2 Crores & above, 423 projects stand completed (including projects which are merged, completed and merged & where coal reserves have since been exhausted) and 161 projects are under various stages of implementation. Out of 161 on-going projects, 120 are on schedule

and 41 are delayed. Remaining 133 projects have either been shelved or withdrawn. In Singareni Collieries Company Limited (SCCL) out of total 140 mining projects, costing `2 crores and above, 55 projects are closed / dropped / converted / merged /foreclosed. The details of balance 85 projects are as under:-

Company Total No. of Projects

Number of completed projects

On schedule

Delayed On hold Total

SCCL 85 59 10 12 4 26

6.2.6 Status of projects monitored at the Government level

Projects costing ` 20 crores & above are being monitored at the Government level. As on 31.12.2010, 131 mining and 12 non-mining ongoing projects, costing ̀ 20 crores & above, are under implementation in CIL.

Out of these, 25 mining projects and 3 non-mining projects are delayed. In SCCL out of total 34 projects, 12 projects (10 Mining and 2 non-mining) are on schedule, 17 projects (12 Mining and 5 non-mining) are delayed and 5 projects (4 mining and 1 non-mining) are kept on hold. In NLC out of total 3 projects, 1 project is on schedule


41

and 2 projects are delayed. Summarized position of the projects is as follows :-

Type No of Projects

Sanctioned Capital (`Cr.)

Ultimate Capacity

Projects on Schedule

Projects Delayed

ProjectOn hold

CIL 143 30050.21 406.32 Mty 115 28 -SCCL 34 10222.37 39.753 Mty 12 17 5NLC 3 8989.10 1750 MW 01 2 -

6.3 Main reasons for slippage in the implementation of projects

(a) Delay in acquisition of land and associated problems of rehabilitation.

(b) Delay in diversion of forest land.(c) Delay due to adverse geo-mining

condition.(d) Other misc. problems such as delay or

discontinuance of work by contractor, non participation in tender, DGMS permissions.

(e) Delay in contract management issues.

6.4 Steps taken to improve project implementation

6.4.1 Land acquisition and rehabilitation

(i) Vigorous follow up action with concerned State Govt. Officials is being taken to expedite land acquisition proceedings.

(ii) Regular meetings with State Authorities viz. Land Revenue Commissioner, LR Secretary, Chief Secretary and Committees constituted by respective State Govts are held to sort out acute problems.

(iii) Forest officials are contacted on regular basis at District and Tehsildar level to fulfill the requirement & queries. Periodical contacts are done

with the Regional Office & Main office of MoEF for expeditious clearance of the forestry proposals.

(iv) Discussions held with land owners / villagers for selection of rehabilitation site and they are persuaded to accept the rehabilitation benefits and to shift to the rehabilitation site.

6.4.2 Geo-mining constraints

Sophisticated geological and geo-physical exploration techniques have been introduced for advance & accurate forecasting of geo-mining condition.

6.5 Project Management

(1) Director (Projects & Planning) posted in each company with overall responsibility of implementation of projects.

(2) Comprehensive guidelines for project formulation and monitoring issued by the Govt.

(3) The system of monitoring at various levels has been standardized.

(4) Project monitoring is done on monthly basis or at shorter intervals at the area level by General Manager/Chief General Managers and at regular intervals by Director (Projects) and CMDs at corporate level.


42

(5) Mandatory review of the projects is carried out at company level when the expenditure of the project exceeds 50% of the sanctioned capital.

(6) Projects costing Rs.100 crores & above are also reviewed in CIL Board by exception.

(7) Progress reports in respect of projects costing Rs.150 crores & above are also submitted to Department of Programme Implementation regularly.

(8) Department of Programme Implementation regularly monitors the implementation of projects costing 20 crores and above.

(9) Quarterly review in the administrative Ministry/Department at the level of Secretary is taken for major projects.

6.5.1 Assistance required in Project Implementation

(1) State Govt. may also share the responsibility for acquisition of land along with Coal Companies. Delivery of possession of land by the State Govts. be ensured after the requisite fund is deposited with State Govt, so as to avoid any delay in implementation of projects.

(2) Now-a-days, land acquisition is becoming very difficult due to competitive scenario, arising out of acquisition of land by several other agencies in the near-by areas of coal projects of CIL. Different agencies of other sectors as well as captive coal mine owners, by direct negotiation with the land owners, are offering

much higher rate of land compensation compared to the rate of compensation offered by CIL Coal Companies, as per prevailing rates calculated as per provisions of CBA Act & LA Act. It is suggested that a comprehensive view may be taken at the Government level to device the methodology for fixing rate of compensation of land taking into account the existing rates in the surrounding areas.

(3) Responsibility for acquisition of forest land should be restricted to payment of Net Present Value charges etc. only by the Coal Companies. The time now required for processing the proposal may be reduced by restricting the movements of file in different channels.

(4) For Prospecting, up to 20 boreholes per sq. Km be exempted from taking permission under F(C) Act, 1980.

6.6 Lignite Projects Under Construction / Implementation

6.6.1 Government of India sanctioned the expansion of Mine-II from 10.5 MTPA to 15.0 MTPA of lignite linked to TPS-II Expansion with 2 Units of 250 MW each on 18th October 2004 at a capital cost of Rs. 4192.06 Crores. The project was completed in March, 2010.

6.6.2 Mine-II Expansion project was completed on 12th March 2010. The mine was dedicated to the Nation by the Hon’ble Union Minister of State for Coal & Statistics and Programme Implementation on 5th April 2010 at Neyveli.


43

6.6.3 In respect of TPS-II Expansion project, Erection of Boilers, Electrostatic Precipitators and Turbo Generators are in progress. Hydro test for Unit-I & II was completed on 27.06.09 and 30.07.2010 respectively. Chimney and Cooling Towers–I&II completed on 15.01.2010. Commissioning of circulatory water system including Fire Hydrant System was achieved on 09.11.2010. Erection works in Lignite handling system; DM Water treatment plant and Ash handling system are in progress. As the progress of Main plant package contractor M/s BHEL is not

adequate to fulfill the commitment, there is likely to be a delay of about 28 months in the commissioning of the units. The progress of works by M/s BHEL, both in supply of materials and erection works at site are being taken up with the top management of M/s. BHEL on periodical basis, besides appraising the Ministry of Coal, Ministry of Power, Ministry of Heavy Industries and also CEA so as to avoid further delay and expedite the erection works for early commissioning of the units. It is now anticipated that Unit-1 will be commissioned in March 2011 and Unit-2 in October 2011.

6.6.4 Government of India sanctioned Barsingsar Lignite Mine Project of 2.1 MTPA linked to the Barsingsar Power Project of 2 units of 125 MW each on 15th December 2004 at a cost of Rs. 1368.25 Crore, at Rajasthan.

6.6.5 In respect of Barsingsar Mines Project, both overburden and lignite production has

been outsourced. The Mine Project was completed in June 2010.

6.6.6 In respect of Barsingsar Thermal Power Project, first unit was synchronized on 27/10/2009 and dedicated to the Nation by Hon’ble Minister of State for Coal on

Bucket-Wheel Excavator-Neyveli Lignite Corporation


44

SL.

No

Name of the Projects Company Est. Capacity (Mty)

Est. Capital Cost (` Crores)

1 Sonepur Bazari Comb. OCP ECL 8.00 1587.842 Development of Muraidih UG Mine BCCL 2.00 339.8753 Setting up of 5 Mty washery for washing NLW

coking coal near existing Patherdih WasheryBCCL 5.00 169.6416

4 Khadia Expansion OC NCL 6.00 (incr.) 1488.575 Tipong OC NEC 1.00 230.276 PQ Block OC NEC 0.15 26.70

A. (ii) New / Expn. / Extn. Projects likely to be sanctioned by Subsidiary Coal Companies from January to March, 2011

SL. No Name of the Projects Company Est. Capacity (Mty)

Est. Capital Cost (` Crores)

1 Samleswari OC Expn. (Ph-IV) MCL 5.00 27.822 Belpahar OCP Expn (Ph-II) MCL 4.50 14.413 New Majri Sector-I/II A OC WCL 1.00 50.39

B. (i) RCE / RPR likely to be sanctioned by Coal India Ltd from January to March,2011

SL. No

Name of the Projects Company Capacity (Mty)

Capital Cost (`Crores)

1 RCE for Introduction of Continuous Miner at Kottadih UG (Ph-I)

ECL 0.51 122.35

2 Rapid Loading system with SILO near Maheshpur Siding

BCCL 5.00 140.4696

3 Block-B OCP NCL 3.50 535.10

05th June 2010 and Unit-II was also synchronized on 5th June 2010.

6.6.7 However teething problems being faced in both the units in the process of stabilization are attended to by the contractor M/s. BHEL. Bunker lining modification has been completed and both the units are expected

to be commissioned before March 2011 .

6.7 Projected Targets for the Period From January to March 2011

A. (i) New / Expn. / Extn. Projects likely to be sanctioned by Coal India Ltd from January 2011 to March, 2011 are as under :-


45

B. (ii) RCE / RPR likely to be sanctioned by Subsidiary Coal Companies from January to March,2011

SL. No

Name of the Projects Company Capacity (Mty)

Capital Cost (` Crores)

1 HBI Augmentation UG MCL 1.00 104.372 Bagdeva UG SECL 0.75 82.003 Jhilmili UG SECL 0.50 40.004 RPR of Amalgamted Gondegaon-Ghatrohan OC WCL 2.00 73.88

Inauguration of Mine-II Expansion Project (NLC) by Hon’ble Minister of State (I/C) for Coal & SPI


46

Chapter-7

Coal Production, Marketing & Distribution

7.1 Coal Production

7.1.1 Coal India Ltd. and its subsidiaries are the major producer of coal. 299.52 Million Tonnes of coal was produced by Coal India Ltd. and its subsidiary companies during April 2010 to December 2010 as against the production of 295.51 Million Tonnes during the same period for the year 2009-10 showing a growth of 1.4%.

7.1.2 Singareni Collieries Company Limited is the main coal producer in southern India. SCCL has produced 45.873 MT during the period from April 2010 to Feb. 2011 as against 45.552 MT during the corresponding period last year. It is anticipated that by the end of March 2011, the total production would be 50.50MT.

7.2 Coal Distribution And Marketing

The Marketing Division of CIL coordinates marketing activities for all its subsidiaries. CIL has set up Regional Sales Offices and Sub- Sales Offices at selected places in the country to cater to the needs of the consuming sectors in various regions.

7.3 Linkage Committees

7.3.1 Prior to introduction of New Coal Distribution Policy (NCDP), two types of Linkage Committees used to function for deciding the long term and short term availability of coal and distribution to the consumers belonging to Cement, Power and Steel including sponge iron units .

(i) Standing Linkage Committee (Short-Term) SLC (ST)

(ii) Standing Linkage Committee (Long-Term): SLC (LT)

7.3.2 With the introduction of NCDP and FSA regime in replacement of linkage system, Standing Linkage Committee (Short-term) has been abolished in July, 2010.

7.3.3 SLC (LT) for Power Utilities including CPPs & IPPs, Cement and Sponge iron considers requirement of coal at planning stage and links the requirement in long term perspective from a rational source after examining factors like quality and quantity required, time frame, location of consuming plants, transport logistics, development plan for coal mine etc.

7.3.4 The Long-Term Linkage Committee is presently being chaired by Special Secretary, Ministry of Coal and has representatives from Ministry of Power, Ministry of Steel, Ministry of Commerce & Industry, Ministry of Railways, Department of Shipping, Central Electricity Authority, Coal India Limited, CMPDIL and Singareni Colliery Company Limited (SCCL).

7.3.5 New Coal Distribution Policy has intro-duced the concept of “Letter of Assurance” (LoA), which provides for assured supply of coal to developers, provided they meet stipulated milestones. Once the milestones as stipulated in the LoA are met by the developers, LoA holders are entitled to enter


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into Fuel Supply Agreements (FSAs) with the coal companies for long-term supply of coal. The quantity of coal to be supplied along with other commercial terms and conditions are covered in the FSA itself.

7.3.6 During the year 2009-10, the Committee has recommended issuance of Letters of Assurance (LOA) to consumers of Power sector as per details given below :-

Name of the Sector Number of applications approved Capacity approvedPower utilities 11 5690 MW

IPPs 23 12449MWCPPs 57 3325 MWTotal 91 21264 MW

During the current year 2010-11 (as on 31st December, 2010), SLC (LT) has recommended grant of LoA for 13 IPPs for approved capacity of 5560 MW.

7.4 Allocation of Coal to Power, Cement and Steel Plants

7.4.1 The allocation of coking coal to Steel plants was earlier made by the Coal Controller. However, after deregulation of coking coal, the supplies of coking coal are being made by

the coal companies themselves on the basis of linkages established by the SLC (LT) or on the basis of their existing commitments.

7.4.2 During the year 2010-11 till 31st December 2010, CIL and SCCL supplied following quantities of coal to various consumers:-

Coal India Limited (in Million Tonnes)

Sector Targeted Off take Actual Off take Supply % against TargetPower (Utilities) * 240.14 221.00 92.0Sponge Iron 10.03 9.66 96.3Steel** 6.63 5.79 87.3Cement including CPP 5.39 7.71 143.0Fertilizer 2.16 2.04 94.4Others 74.07 63.87 86.2Colly Cons 0.50 0.39 78.0Total 338.92 310.46 91.6

* 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.


48

Singareni Collieries Company Limited (SCCL)(in million tonnes)

Sector April ’10 to Feb.’11

April ’09 to Feb.’10

Growth (%) March 2011 (anticipated)

Total anticipated

Power (utility & CPP)

32.420 33.016 - 1.8 3.500 35.920

Steel (Sponge Iron)

1.425 1.315 8.36 0.130 1.555

Cement 6.644 6.594 0.76 0.500 7.144Fertilizer - -Others 4.463 3.767 18.47 1.328 5.791Colliery Construction

0.089 0.096 0.001 0.090

Total 45.041 44.788 0.58 5.459 50.50

7.5 Power Houses

Off-take of coal by thermal power stations during the year 2010-11 (April-Dec) from CIL was 221.00 million tonnes registering 92.0 % materialization of target. Compared to same period last year, dispatch has also been up by 3.12 million tonnes which in terms of % increase comes to 1.43 %

7.6 Cement Plants

The dispatch to cement plants including their captive power plants, from CIL during 2010-11 (April-Dec) was 7.71 million tonnes as against 7.20 million tonnes during the same period last year which in terms of % increase comes to 12.29 %

7.7 Modes of Transport

Important modes of transport of coal and coal product in CIL are Railways, Road, Merry-Go-Round Systems (MGR), Conveyor Belts and the Multi Modal Rail-cum-Sea Route. The share of these modes of transport in the total movement of coal and

coal products during the current fiscal (Apr 2010 - Dec 2010) has been approximately as under :-

Sl. No Modes of Transport Share %1 Railways (including

Rail–cum-Sea)51

2 Road 263 MGR 20

7.8 Progress Made Under New Coal Distribution Policy (NCDP)

7.8.1 Prior to introduction of New Coal Distribution Policy in October, 2007, the consumers were broadly classified in two categories : Core and Non Core Sector. The basis for earlier classifying consumers was solely based on their role in economic development. However, the erstwhile classification of the consumers under New Coal Distribution Policy has been dispensed with. The policy was formulated in view of the directions of the Apex Court and came into force w.e.f. 18.10.2007.


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Once the milestones as stipulated in the LoA are met by the LoA holders, they are entitled to enter into Fuel Supply Agreements (FSA) for long-term supply of coal.

7.8.4 Progress made by CIL/SCCL in implementing the provisions of NCDP 2007 is summarized below :

(a) Classification of consumers into core and non-core sector has been dispensed with

(b) Linkage system has been replaced with Fuel Supply Agreement (FSA) and accordingly out of 1219 existing valid linked consumers, 1184 consumers have executed FSA with the coal companies in categories other than Power Utilities. Sector-wise position of FSA under NCDP as on 31.12.10 is given below :-

7.8.2 Under this policy, each sector / consumers have been treated on merit, keeping in view the regulatory provisions applicable thereto.

7.8.3 Earlier Standing Linkage Committee (Long Term) inter alia, granted long-term coal linkage to power utilities, IPP, CPP and Cement Units with firm commitment of the coal quantity and the identified sources of coal supplies. However, it was observed that many of the power projects, which were granted long-term coal linkage, did not come up as planned resulting in preemption of coal linkage. Therefore, under New Coal distribution Policy it was decided to introduce the concept of “Letter of Assurance” (LoA), which provides for assured supply of coal to developers, provided they meet stipulated milestones.

Railway Siding for Coal


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Old Consumers

No of Linked consumers

No of FSA signed

CPP 143 142Sponge Iron 246 240Cement 46 46Paper 45 45Aluminum 4 3Briquette 64 64SSF 82 82Cokeries 148 147Others * 441 415Total CIL 1219 1184

* Others exclude power utility

2010-11 of which 23 state agencies have signed FSA for 4.0 million tonnes and are drawing coal accordingly

(f) Steps have been taken to enforce discipline and economy in use of coal as per NCDP directions, including incorporation of necessary clause in FSA stating that Purchaser shall not sell/divert and/or transfer the Coal for any purpose whatsoever and the same shall be treated as material breach of Agreement followed by termination of Agreement without any liabilities or damages, whatsoever, payable to the Purchaser.

Singrani Collieries Company Limited

(a) Sector wise position of FSAs under NCDP (upto 28.02.2011)

Sector No. of linked consumers

No. of FSAs signed

Power (Major) 4 3CPP 31 31Sponge Iron 54 54Cement 61 61Others 217 217

(b) SCCL has issued LOAs for 26 No. of units recommended by SLC (LT).

• LOAs converted into FSAs with Cementunits - 9 Nos.

• LOAs converted into FSAs with CaptivePower Plant - 13 Nos.

• Conversion into FSAs under progress- 1 No.

• Units not willing for issue of LOA undercost plus - 4 Nos.

(c) Out of 133 FSAs to be executed with existing power stations, 117 FSAs have been executed. In addition, 22 units have executed MOUs and are drawing coal

(d) The process for issuance of LOA in respect of all new consumers who have been recommended by SLC (LT) up to December 2010 has been implemented. 655 new consumers in power, sponge iron, CPP and cement sector were served notices with a request to deposit commitment guarantee of which 538 units submitted CG. 537 units have been issued LOA for completion of necessary milestones. 264 units have completed milestones and executed FSAs. Remaining units are under process of execution of FSAs.

(e) For supply of coal to Small and Medium Consumers sector, 8 million tonnes have been earmarked by CIL for allocation to agencies nominated by the State Govts / UTs. So far, 21 States / UTs have sent their nomination of 28 state agencies for the year


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7.9 Distribution of Coal to Small & Medium Consumers

7.9.1 The New Coal Distribution Policy also specifically addresses the issue of supply of coal to consumers in small and medium sector since the classification of the consumers as core and non core sector has been dispensed with under the New Coal Distribution Policy.

7.9.2 Under this policy, the State Governments are required to work out genuine requirement of such units in small and medium sector like smokeless fuel, brick kilns, coke oven units etc in a transparent and scientific way and distribute coal to them accordingly. The State Governments may take appropriate steps to evaluate the genuine consumption and monitor use of coal. The cap has also been enhanced to 4200 tonnes per annum from 500 tonnes for the targeted consumers under this category. In order to meet the enhanced cap fixed for such consumers, the quantity earmarked for distribution by state nominated agencies has been kept at 8 mill tonne of coal annually. The quantity would be allocated for distribution to those units/ consumers in small and medium sector across the country whose requirement is less than 4200 tonne per annum, and are otherwise not having any access to purchase coal or conclude Fuel Supply Agreement (FSA) with coal companies

7.9.3 The earmarked quantity would be distributed through agencies notified by

the state governments. These agencies could be State Govt. Agencies / Central Govt. Agencies (National Co-operative consumers Federation (NCCF)/National Small Industries Corporation (NSIC) etc) or industries association, as the State Govt. may deem appropriate. The agency so notified. would be required to enter into FSA with coal company. The agency so notified will continue to distribute coal until the State Govt. decides to de- notify it.

7.9.4 The FSA would be based on firm commitment and compensation for default in performance on either side. The State Government/Central Govt. agencies would be free to devise their own distribution mechanism. However the said mechanism should inspire public confidence and should result in distribution of coal in a transparent manner.

7.9.5 The price charged to such agencies would be the notified price as applicable to other consumers entering into FSA. The agency would be entitled to charge actual freight and upto 5% margin as service charge, over and above the basic price charged by the coal company, from their consumers.

7.9.6 So far, 21 states / UTs have nominated their agencies during the year 2010-11 for distribution of coal to small scale industries. 28 state agencies have been nominated, of which 23 state agencies have signed FSA for a quantity of 4.0 mill tonnes.


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7.10 FSAs with State Agencies under NCDP as on 31.12.2010

1 No of States / UTs 352 Quantity earmarked (lakh

tone)80.00

3 No of States who nominated agencies for 09-10

21

4 Qty allocated to states/ nominated agencies (lakh tone)

57.63

5 No of states drawing coal under FSA so far

19

6 ACQ covered under FSA (lakh tone)

40.02

7.11 E–Auction of Coal 7.11.1 E-Auction of Coal in CIL : New Coal

Distribution Policy (NCDP) issued by GOI on 18.10.2007 paved way for launching of a fresh scheme for sale of coal through E auction. E auction are of two types - Spot E auction and Forward E Auction. Spot E auction is almost similar to the old E Auction scheme introduced

earlier prior to NCDP, where an intending buyer can participate in auction. In case of Forward E-auction, only end-users/ actual consumers are eligible to participate and have assured supply over a long period of one year. Each Forward e-Auction shall be for a period of 12 months consisting of 4 following quarters of 3 months each. Consumers will have the flexibility to bid for any one quarter or for up to all the four quarters in one go. Bidders/consumers are to make bid at or above reserve price. While Spot E Auction has been in operation since Nov 2007, Forward E Auction commenced from Aug 09. Forward E Auction could not be started earlier due to difficulties in implementing certain terms and conditions incorporated in the scheme which were subsequently resolved. Around 10% of estimated annual production of CIL would be offered under e-auction. Performance of E Auction after implementation of NCDP is given as under :-

Spot E Auction Forward E Auction

Nov07- Mar08

Apr08- Mar09

Apr09- Mar’10

Apr’10-Dec’10

Apr09- Mar’10

Apr’10-Dec’10

No of Bidders 27954 73248 78155 51817 22 211No of Successful bidders 14069 43428 40848 31637 22 166Total Qty offered (L.Tonnes) 174.996 919.575 541.392 377.36 48.980 241.74Total Qty allocated (L.Tonnes) 155.695 488.744 457.321 323.64 5.535 43.35Notified Price of Total Allocated Qty (in Rs.Cr.)

1382.935 4577.918 4528.956 3373.25 58.729 361.21

Bid Price of Total Allocated Qty (in Rs. Cr.)

2511.35 7237.114 7238.48 6106.34 117.473 752.38

% increase over Notified Price 81.6 58.1 59.8 81.0 100.025 108.3


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Company wise Spot E Auction during Apr.2010-Dec, 2010 (Fig in lac tonne)

Company Offer Qty Allocation Qty % increase on notified price

ECL 41.69 8.01 48.0BCCL 23.21 22.24 62.0CCL 44.84 36.42 65.5NCL 11.76 11.55 90.8WCL 41.10 40.22 76.5SECL 74.02 73.31 121.9MCL 137.55 130.12 74.3NEC 3.20 1.76 64.7CIL 377.36 323.64 81.0

7.11.2 E-Auction of coal in SCCL

SCCL has started spot E-Auction of coal in

December, 2007. The details of coal sold by SCCL through spot E-Auction during the period from April,’10 to Feb,’11 are as follows :-

Company Offered Quantity Sold Quantity % increase on notified priceSCCL 28.51 LT 23.94 LT 47

7.12 Import of Coal

7.12.1 As per the present Import Policy, coal can be freely imported (under Open General Licence) by the consumers themselves, considering their needs and exercising their own commercial prudence.

7.12.2 Coking coal is being imported by Steel Authority of India Limited (SAIL) and other Steel sector manufacturing units mainly to bridge the gap between the

requirement and indigenous availability and to improve the quality. Coal based power plants, cement plants, captive power plants, sponge iron plants, industrial consumers and coal traders import non- coking coal. Coke is imported mainly by Pig-Iron manufacturers and Iron & Steel Sector consumers using mini-blast furnace. Details of import of coal and products during the last five years are as under :-

(Fig in Million Tonnes)

2005-06 2006-07 2007-08 2008-09 2009-10Coking Coal 16.89 17.88 22.03 21.08 23.46Non Coking Coal

21.70 25.20 27.76 37.92 44.28

Coke 2.62 4.69 4.25 1.88 2.20Total Import 41.21 47.77 54.04 60.88 69.94


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7.12.3 Currently while import duty on coking coal is nil, import duty on non coking coal and Coke is 5%.

7.13 Coal Consumer Councils

For redressal of consumer’s grievances and monitoring of complaints received from consumers, one Regional Coal Consumer Council each has been set up for each coal company. An Apex body viz National Coal Consumers Council has also been set up at CIL HQ. In case the complainants do not receive a reply within a month or a complainant is not satisfied with reply of

Coal Company, he may refer the matter to National Coal Consumers Council. These Councils have been reconstituted during the year 2010-11 with the addition of many new members. CIL has also introduced on line grievance redressal mechanism which will give access to all buyers for lodging complaints / grievance through CIL website Guidelines for lodging complaints, forms for submission of complaints, status report of grievance etc have already been placed on CIL website so that consumers can avail of such mechanism.


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Chapter-8

Coal Conservation, Research & Development

8.1 Coal Conservation

8.1.1 Conservation of Coal is an important area particularly when our coal reserves are finite. The aspect of conservation of coal is taken into account right from the planning stage and maximum recovery is ensured during the implementation stage. Mines are designed to work the coal seams either through opencast or through underground methods depending on the technical feasibility and economic viability.

8.1.2 Mechanised opencast (OC) mining is presently the commonly adapted technology for extraction of thick seams at shallow depth. This is also important from the conservation point of view since the percentage recovery by this technology is around 80% to 90%. Presently, this technology dominates the coal industry contributing more than 88% of country’s coal production. Further, whenever it is feasible, the developed pillars of underground mines are being extracted through opencast operations.

8.1.3 In case of underground (UG) mining, the introduction of new technologies like the longwall method, shortwall method, blasting gallery technology and continuous miner technology have resulted in increased percentage of extraction.

8.1.4 With the improvement in roof support technology with mechanized bolting with resin capsules, it has been possible

to maintain wider gallery span and extract seams under bad roof conditions more efficiently resulting in improved conservation of coal.

8.1.5 The Ministry of Coal (MoC) governs the Coal Mines (Conservation & Development) Act 1974 for conservation of coal and development of mine areas through Coal Controller Organisation. A stowing excise duty of `10/- per tonne is collected on coal production/despatch and coal companies are extended assistance for undertaking conservation measures.

8.2 Sand Stowing

Sand stowing in underground mines is yet another effective means of coal conservation, which is widely in use for extraction of coal pillars from underground coal seams lying below built-up areas, such as important surface structures, railway lines, rivers, nallahs, jores, etc. which otherwise would have resulted in locking of coal in pillars. Stowing also helps in the extraction of thick seams in several lifts increasing the percentage of extraction. Due to scarcity of sand, various experimental trials are being conducted to use other materials like fly ash, boiler ash, crushed overburden material etc. for stowing in underground mines as a substitute for sand.

8.3 Research & Development

8.3.1 The Govt. of India initiated Coal S&T Grant in 1975 under Ministry of Coal (MoC) to


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enable research and development activities over a wide spectrum of areas viz. (i) Production, Productivity and Safety (ii) Coal Beneficiation and Utilisation and (iii) Environment and Ecology in coal & lignite sector. The grant is administered by Standing Scientific Research Committee (SSRC) with Secretary (Coal) as its Chairman.

8.3.2 Central Mine Planning and Design Institute Ltd. (CMPDI) is the nodal agency for coordination and monitoring of coal

S&T projects funded by the Ministry of Coal. These projects have been carried out by various research and academic institutes related to coal and allied industries with active participation of coal and lignite mining companies.

8.3.3 A total of 4 projects have been completed during 2010-11 (till December 2010) and it is expected that 4 more projects will be completed during January 2011 to March 2011.

Status Production, Productivity &

Safety

Coal Beneficiation and

Utilisation

Environment & Ecology

Total

i) Projects on-going as on 1.4.2010

9 6 8 23

ii) Projects approved during 2010-11 (till Dec.’10)

2 - - 2

iii) Projects completed during 2010-11 (till Dec.’10)

1 1 2 4

iv) Projects terminated during 2010-11 (till Dec.’10)

1 - - 1

v) Projects on-going as on 31.12.2010

9 5 6 20


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Chapter-9

Safety in Coal Mines

9.1 Jharia & Raniganj Action Plan

9.1.1 The problems of subsidence and fires are the result of unscientific mining carried out by the earstwhile mine owners over more than 200 years of operations in these coalfields of Jharia and Raniganj prior to nationalisation. The population living in the old mining areas has increased many times over the years, though these areas became unsafe for habitation. In-spite of the declaration of these areas unsafe by the local administration, the habitation increased unabated. The problem of subsidence and fire are being addressed by the Government from time to time. In this regard a High Level Committee was set up in December, 1996 under the Chairmanship of the then Secretary, Ministry of Coal with representatives from other Departments, Coal companies and the concerned State Governments to deal with the problem in a comprehensive manner. Based on the recommendations of the Committee

a Master Plan was prepared to deal with the problems of fire and subsidence and related rehabilitation covering the areas under Bharat Coking Coal Ltd. (BCCL) and Eastern Coalfields Ltd. (ECL) in 1999 for implementation of the same in a phased manner.

9.1.2 The Government has approved the Master Plan dealing with fire, subsidence and rehabilitation and diversion of surface infrastructure within the leasehold of Bharat Coking Coal Limited (BCCL) & Eastern Coalfields Limited (ECL) on 12th August, 2009 at an estimated investment of `9773.84 crore (`7112.11 crores for Jharia Coal Field (JCF) and `2661.73 crores for Raniganj Coal Field (RCF) including `116.23 crore sanctioned earlier for various Environmental Measures & Subsidence Control (EMSC) schemes for implementation in ten years time. The summarized data of approved Master Plan is given in the table below:-

Sl No. Particulars of the components of Master Plan

RCF(ECL) (April’08) JCF (BCCL) (March’08)

A Dealing with fire1 Total no. of existing fires 7 67 (under 45 fire projects)2 Estimated Cost (Rs. crores) 40.28 2311.50B Rehabilitation1 No. of sites to be Rehabilitated 139 5952 Area affected in sq.km 8.62 25.693 No. of houses to be Vacated/

Rehabilitated


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i) BCCL (Taking into account superannuation)

44155/ 25000

ii) Private (Authorised) 29444iii) Encroachers (Un-authorised) 23847iv) Others 868

Total No. of houses 33196 98314/ 79159Population covered 180263 395795

4 Land required for rehabilitation (Ha)

896.29 1504.99

5 Estimated cost (Rs. crores) 2610.10 4780.60C Diversion of Railway line/ Road/

OC pipeline7 sites Planning and survey with an

outlay of Rs.20 croresEstimated Cost (Rs. crores) 11.35 20.00

D Implementing Agency for fire projects & rehabilitation of BCCL/ ECL houses

ECL BCCL

E Implementing Agency for rehabilitation of Non-BCCL/ ECL houses - Private & Encroachers

Asansol Durgapur Development Authority (ADDA), Govt. of WB

Jharia Rehabilitation & Development Authority (JRDA) of Govt. of Jharkhand

F Implementation Schedule, years 10 (in two Phases each of 5 years)

10 (in two Phases each of 5 years) +2 years for pre implementation phase)

G Estimated Capital Requirement for fire projects, rehabilitation & diversion of rail/road/pipeline etc. (Rs. crore)

2661.73 7112.11

9.1.3 Asansol-Durgapur Development Authority (ADDA) and Jharkhand Rehabilitation Development Authority (JRDA) have been notified by the state Governments of West Bengal and Jharkhand respectively as implementing agencies for rehabilitation purposes. Coal companies (ECL & BCCL) will provide technical support and the outlay will be funded partially through the internal resources of CIL and the cess collection under CCDA.

9.1.4 The implementation of the Master Plan for Jharia and Raniganj Coalfields is being monitored by the High Powered Central Committee (HPCC) constituted by this Ministry under the chairmanship of Secretary (Coal). So far, four meetings of the Committee have been held. 50% of survey works has already been completed for rehabilitation of the affected persons and out of 3100 houses for non BCCL people, 400 houses has already been


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occupied and another 400 houses are on the verge of allotment. The remaining houses are expected to be shifted into within 2 to 3 months time. Further, as per the discussion in a review meeting on the implementation of the Master Plan, Ministry of Steel has

been requested to transfer 2300 acres of vacant land, belonging to Durgapur Steel Plant (DSP) for rehabilitation of the affected people, living in Raniganj coalfield area of ECL, keeping in view that DSP has no immediate plan of utilizing the vacant land.

9.2 Safety Measures / Initiatives

9.2.1 Safety in coal mines is of paramount importance. In addition to the compliance of the provisions of prescriptive safety legislation under the Mines Act 1952, PSU coal companies have also taken steps for self regulation. These steps include:-

l Establishment of multi-disciplinary Internal Safety Organization (ISO) to assist the line management at various levels in matters related to Safety.

l Introduction of Risk Assessment based Safety Management Plan for

the mines.

l Safety Audit by independent safety auditors.

Steps for Disaster Prevention:

o Inundation: Thrust on Safety Audit, Check Survey, Trials of Geo-physical Methods for detection of water bodies / proving parting, adequate preparation before monsoon season etc.

o Fire in mines: Panel system working (so that in case of fire that can be isolated immediately), strengthening

Mechanised Roof Bolting Operations in Underground Coal Mine


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of isolation stoppings and use of fire retardant sealant etc.

o Explosion: Early Gas detection through various modern gadgets (both sensors & catalytic base), Continuous type computer based on-line Gas monitoring for highly gassy and fiery mines and erection of explosion proof stopping.

9.2.2 Emergency Response Systems

l Emergency Escape Routes.

l State of the art Rescue Apparatus like BG-4 Self Contained Breathing Apparatus was introduced in Rescue Stations and Rescue Personnel were trained for their use.

9.2.3 For reduction of Roof/Side falls accident

Roof / Side fall accident is still one of the major causes of fatal accident in underground mines. Coal Companies have given priority for ensuring roof support management through :

l Stress on face mechanization to reduce exposure of workmen in active working zone.

l Geo-mechanical properties of overlying rocks are being studied and Support Systems are being scientifically designed on the basis of Rock-Mass-Rating (RMR) of overlying strata and duly approved by DGMS.

l Greater use of Roof Bolting/ Stitching methods of roof support

l Introduction of mechanized drilling by roof bolting machines.

l Emphasis on development of indicators for detecting impending load on roof through R&D.

9.2.4 For reduction of accident in Opencast as well as on Surface of Mines:

The following measures are being taken for reduction of fatalities in Opencast Mines & on Surface:

l Mine-specific Traffic Rule.

l Code of Practices for HEMM operators, Maintenance staffs & others.

l Standard of Procedure related to safe operation of various mining operation.

l Risk Assessment & Management

l Training of Contractor’s Workers involved in transporting

9.2.5 Monitoring the status of safety through the following agencies :

l Workmen’s Inspectors

l Safety Committee at mine level

l Area Level Tripartite Committees

l Tripartite Safety Committee

l CIL Safety Board

l Standing Committee on Safety in Coal Mines

l Conferences on Safety in Mines

l Different Parliamentary Standing Committee


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9.3 Accident Statistics

9.3.1 Company-wise accident statistics for the year 2010

Company Fatal Acci-dents

Fatali-ties

Serious Acci-dents

Seri-ous

Inju-ries

Fatality Rate Serious Injury Rate

Per MT Per 3 lac man

shifts

Per MT Per 3 lac man

shiftsECL 12 12 53 53 0.73 0.69 5.18 1.43BCCL 9 9 21 26 0.71 0.68 3.55 0.79CCL 8 10 8 9 1.12 0.59 0.59 0.36NCL 12 12 7 7 0.16 0.81 0.11 0.54WCL 13 16 37 61 1.08 1.05 2.76 2.57SECL 20 33 36 44 0.62 0.85 2.18 1.79MCL 2 2 3 3 0.02 0.27 0.02 0.27NEC 1 1 0 0 1.12 1.28 0.00 0.00CIL 77 95 165 183 1.11 0.82 2.83 1.35SCCL 10 12 298 308 0.24 0.24 6.13 6.30NLC 2 3 4 5 0.13 0.21 0.22 0.35

Note: Figures for 2010 are updated as on 31-12-10 and provisional.

9.3.2 Company-wise accident statistics during the period 2007 to 2010

Com

pany

Fatal Accidents Fatalities Serious Accidents Serious Injuries

2007

2008

2009

2010

2007

2008

2009

2010

2007

2008

2009

2010

2007

2008

2009

2010

BCCL 9 11 14 9 9 11 18 9 59 48 41 21 60 48 44 26CCL 7 4 6 8 8 4 6 10 21 18 6 8 22 19 8 9ECL 7 11 8 12 8 11 9 12 120 112 110 53 132 113 112 53MCL 4 4 3 2 4 4 3 2 8 5 6 3 8 5 6 3NCL 6 5 4 12 6 9 4 12 12 8 2 7 13 8 2 7NEC 0 2 0 1 0 7 0 1 0 0 0 0 0 14 0 0SECL 14 11 9 20 14 12 9 33 71 54 35 36 75 55 38 44WCL 12 11 11 13 12 13 13 16 53 29 38 37 54 29 39 41CIL 59 59 55 77 61 71 62 95 344 274 238 165 364 291 249 183SCCL 10 12 17 10 10 13 21 12 556 427 405 298 561 429 410 308NLC 2 2 3 2 2 2 3 3 4 3 8 4 7 3 9 5

Note: Figures for 2009 & 2010 are updated as on 31-12-10 are provisional and subject to reconciliation with DGMS.


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9.3.3 Rate of Fatality and Serious Injury of CIL, SCCL & NLC during the period 2007 to 2010

Com

pany

Fatality Rate Per MT

Fatality Rate Per 3 lac manshifts

Serious Injuries Rate Per MT

Serious Injuries Rate 3 lac manshifts

2007

2008

2009

2010

2007

2008

2009

2010

2007

2008

2009

2010

2007

2008

2009

2010

@ CIL 0.53 0.84 0.73 1.11 0.55 0.59 0.55 0.82 5.68 4.63 3.92 2.83 2.63 2.00 1.65 1.35*SCCL 0.24 0.30 0.43 0.24 0.18 0.26 0.42 0.24 13.52 9.92 8.48 6.13 10.25 8.51 8.28 6.30 NLC 0.09 0.10 0.13 0.13 0.14 0.14 0.21 0.21 0.31 0.15 0.39 0.22 0.49 0.21 0.62 0.35

@ Note: Figures for the year 2010 are updated as on 31-12-2010 and are provisional.* Figures are subject to reconciliation with DGMS.


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Chapter-10

Public Sector Undertakings in Coal Sector

10.1 Historical Development of Coal India Limited and its Subsidiary Companies

10.1.1 The Coking Coal Mines (Emergency Provisions) Ordinance was promulgated by the Government of India on 16.10.1971 under which except the captive mines of TISCO and IISCO, the management of all coking coal mines was taken over by the Government. A new company called the Bharat Coking

Hon’ble Minister of Coal Shri Sriprakash Jaiswal, Secretary (Coal) and Chairman, CIL flanked by artists at the event of Coal India Limited Foundation Day

Coal Limited was formed as a subsidiary company of the Steel Authority of India Limited to manage the taken over mines. These mines were subsequently nationalized w.e.f. 01.05.1972. Later on, the management of 711 coal mines was also taken over by the Government with effect from 31.01.1973 and they were nationalized w.e.f. 01.05.1973 and a new Government Company, namely, the Coal Mines Authority Limited (CMAL) with


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headquarters in Kolkata, was set up by the Government in May, 1973 to manage the non-coking coal mines. CMAL was organized as a unitary structure on divisional pattern with four Divisions, the Central Division, the Eastern Division, the Western Division and the CMPDIL. The mines of erstwhile National Coal Development Corporation were brought under the Central Division of CMAL. In September, 1975, CIL was formed as a Holding Company with five subsidiaries, namely, Bharat Coking Coal Limited (BCCL), Central Coalfields Limited (CCL), Eastern Coalfields Limited (ECL), Western Coalfields Limited (WCL) and Central Mine Planning and Design Institute Limited (CMPDIL).

10.1.2 In view of the projected increase in production and investment contemplated for CCL and WCL group of coal mines and in view of their extensive geographical spread resulting in day to day administrative, technical and communication problems etc. two more coal companies, namely, Northern Coalfields Limited and South Eastern Coalfields Limited were formed w.e.f. 28.11.1985.

10.1.3 Considering the prospects of Orissa Coalfields, being the growth centre for the VIII and IX Plan periods, a new coal company was formed bifurcating the South Eastern Coalfields Limited (SECL). The new company, the Mahanadi Coalfields Limited was incorporated on 3rd April, 1992 with its headquarters at Sambalpur (Orissa) as fully owned subsidiary of Coal

India Limited to manage the Talcher and IB-Valley Coalfields in Orissa.

10.1.4 Coal India Ltd. (CIL) has now 8 subsidiaries viz. Bharat Coking Coal Limited (BCCL), Central Coalfields Limited (CCL), Eastern Coalfields Limited (ECL), Western Coalfields Limited (WCL), South Eastern Coalfields Limited (SECL), Northern Coalfields Limited (NCL), Mahanadi Coalfields Limited (MCL) and Central Mine Planning and Design Institute Limited (CMPDIL). CMPDIL is an engineering, design and exploration company set up for preparing perspective plan(s), rendering consultancy services and undertaking exploration and drilling work to establish coal reserves in the country and collection of detailed data for preparation of projects for actual mining. The other seven subsidiaries of CIL are coal producing companies.

10.1.5 CIL and its subsidiaries are incorporated under the Companies Act, 1956 and 90% of the shares are owned by the Central Government and 10% have been disinvested through Initial Public Offer (IPO) on 04.11.2010. The coal mines in Assam and its neighbouring area are controlled directly by CIL under the unit North Eastern Coalfields.

10.2 Coal India Limited and its Subsidiaries

10.2.1 Board of Directors

CIL, the holding Company with headquarters in Kolkata, is headed by a Chairman-cum-Managing Director in


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schedule ‘A’ scale of pay. He is assisted by four Functional Directors, namely, Director (Technical), Director (Personnel and Industrial Relations), Director (Finance) and Director (Marketing), who are all in Schedule ‘B’ scale of pay. Each Subsidiary Company has its own Board of Directors headed by a Chairman-cum-Managing Director in Scheduled ‘B’ scale of pay. In additional, there are four functional Directors (in schedule ‘C’ scale of pay) in each of the six production companies of BCCL, ECL, CCL, NCL, MCL, SECL and WCL viz Director (Personnel), Director (Finance),

Director (Planning and Projects) and Director (Technical). CMPDIL has four functional Directors on its Board of Directors designated as Director (Technical), Director (Coal Production and Utilisation), Director (Planning and Design) and Director (Research, Development & Technology). In addition, there are several part-time or nominee Directors on the Board of CIL and its subsidiary companies, who are appointed in accordance with the Articles of Association of the Company and Government guidelines prescribed in this regard from time to time.

Scope Special Jury Award Ceremony


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10.2.2 Authorised Share Capital

The authorised share capital of CIL as on 31-03-2010 was `8904.18 crore. The Division of Authorised share capital given as under:-

(i) 90,41,800 Non- cumulative 10% redeemable preference shares of Rs. 1000/- each.

` 904.18 crore.

(ii) 8000000000 Equity Shares of Rs. 10/- each.

` 8000.00 crore.

Total. ` 8904.18 crore.

Authorised Share Capital of the Subsidiary Companies of CIL as On 31-03-2010

(A) The authorised share capital of the Subsidiary companies of CIL are as under:

Subsidiary Company Authorised Share Capital (Rs. in crore)

Bharat Coking Coal Limited.

2,500.00

Western Coalfields Limited.

800.00

Central Coalfields Limited.

1,100.00

Eastern Coalfields Limited.

2,500.00

Northern Coalfields Limited.

1,400.00

South Eastern Coalfields Limited.

1,300.00

Mahanadi Coalfields Limited.

500.00

Central Mine Planning & Design Institute Limited.

50.00

(B) Authorised Share Capital of the foreign subsidiary company of CIL is as under :

Foreign Subsidiary Company

Authorised Share Capital (Meticais/USD)

Coal India Africana Limitada.

25000 Meticais (Approx.USD1000)

10.2.3 Coal India Limited (HQ)

10.2.3.1 CIL is mainly responsible for laying down corporate objectives, approving and monitoring performance of subsidiary companies in the fields of long-term planning, conservation, research and development, production, sales, finances, recruitment, training, safety, industrial relations, wages, material for all operational, acquisition of land, execution of welfare programmes, maintenance of safety standards, improvement of industrial relation etc.

10.2.3.2 In addition to the above functionmatters, commissioning and execution of new as well as on-going projects, man management, production, consumer satisfaction etc. In addition, subsidiary companies perform related functions, such as maintaining liaison with concerned State Governments, CIL has directly under its control the development and exploitation of the coal mines in the North-Eastern States, and the coal marketing network spread throughout the country.

10.2.4 Joint Venture of CIL

(I) Joint Venture Between CIL And NTPC

A Joint Venture company between CIL


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and NTPC has been formed with effect from 27th day of April , 2010 as CIL NTPC Urja Private Limited under the Companies Act, 1956 as Private Limited Company. It is a 50 : 50 JV between CIL and NTPC with authorised share capital of ̀ 10 crore and paid up capital of ̀ 5 lakh. The main object of the Joint Venture is to carry on the business of Coal mining and generation of electricity etc.

(II) Joint Venture of MCL

Mahanadi Coal Fields Limited, a subsidiary of Coal India Limited is having two Joint Venture Projects namely Gopalprasad OCP(15.00 Mty) and Talabaria OCP (20.00 Mty). For this purpose, two JV Companies have been formed.

(i) MJSJ Coal Ltd was incorporated on 13th August, 2008 under the Companies Act, 1956 as a Joint Venture Company of MCL. For Gopalprasad OCP, MJSJ Coal Ltd has been formed where MCL has 60% shares, JSW Steel Ltd & JSW Energy Ltd having 11% shares each and Jindal Stainless Ltd and Shyam Metallics & Energy Ltd. ( formerly known as Shyam DRI Power Ltd ) having 9% shares each. The Paid up Share capital of MJSJ Coal Ltd as on 31-03-2010 was ` 40.10 crore.

(ii) MNH Shakti Ltd was incorporated and registered under the Companies Act, 1956 on 16th July, 2008 as a Joint Venture Company of MCL. For Talabaria OCP, MNH Shakti Ltd has been formed where MCL has 70% shares, Neyveli Lignite Corporation Ltd having 15% shares and HIL having 15% shares. The Share capital

of MNH Shakti Ltd as on 31-03-2010 was `2510 Lakh.

(iii) International Coal Ventures Limited.

International Coal Ventures Limited (ICVL) has been incorporated on 20th May, 2009 under the Companies Act, 1956. International Coal Ventures Ltd is a Joint Venture Company of SAIL, CIL, RINL, NMDC and NTPC with equity holding in the ratio of 2:2:1:1:1 respectively. The object of the Company is to carry on the business in India and abroad for overseas acquisition and /or operation of coal mines or blocks or assets or properties by way of purchasing, taking on lease, licence etc.

(iv) Joint Venture BEML Ltd, CIL & DVC

(For acquiring the assets of M/s. MAMC and starting manufacturing of equipments at Durgapur Plant.)

The representatives of the consortium companies formally took over the possession of the assets and properties of all the establishments of M/S MAMC from the Official Liquidator (OL) before 31st October, 2010.

Share holder’s agreement between CIL,DVC and BEML Ltd , which is under preparation , provides for equity participation of BEML Ltd – 48% , CIL –26% & DVC 26% and authorised capital of `125 crore.

The factory land measuring 193.67 acres at Durgapur has been handed over provisionally to the representative of BEML Ltd by the Asonsol Durgapur Development Authority (ADDA) on 16. 11. 2010.


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10.2.5 Profitability of Coal PSUs(` in crores)

COMPANY As Review by Auditors

Provisional Figures (Unaudited)

2007-08 2008-09 2009-10 Apr’10 to Dec’10

Jan’ to March’11

2010-11

ECL (1026.66) (2105.70) 333.40 (142.81) 186.32 43.61BCCL 97.05 (1376.99) 793.93 507.19 181.57 688.76CCL 1035.25 763.80 1533.05 1159.57 448.42 1607.99NCL 2763.75 3131.01 3766.30 2654.71 1019.72 3674.43WCL 930.22 516.12 931.02 705.36 145.01 850.37SECL 2067.37 1817.93 3063.57 2359.41 976.33 3335.74MCL 2504.79 2580.25 2953.90 2897.62 961.33 3858.95CMPDIL 5.00 6.74 19.61 14.46 8.22 22.68CIL/NEC 2642.58 3657.68 3870.40 3460.31 2214.09 5674.4SUB-TOTAL 11019.35 8990.84 17265.18 13615.82 6141.01 19756.83LESS: Dividend From Subsidiaries

(2378.27) (3329.74) (3367.36) (3137.05) (2157.14) (5294.19)

TOTAL 8641.08 5661.10 13897.82 10478.77 3983.87 14462.64Adjustment for deferred revenue income

97.38 83.00 67.11 41.14 (0.86) 40.28

Overall profit as per consolidation of Accounts

8738.46 5744.10 13964.93 10519.91 3983.01 14502.92

10.2.6 Wages in Coal Sector

Since inception, wage structure and other conditions of service including fringe benefits, welfare measures etc. of the non-executive cadre employees in the Coal Industry have been settled by Bipartite Wage Negotiations by a committee set up by Govt. of India. The committee is functioning in the name of Joint Bipartite Committee for the Coal Industry consisting of representatives of 5 Central

Trade Unions and the management of Coal Companies i.e. CIL & its subsidiary companies, Singareni Collieries Co. Ltd., Tata Iron & Steel Company and Indian Iron & Steel Company from NCWA-I to NCWA-VI. However, in NCWA-VII & VIII, TISCO, IISCO and other Private Coal Companies declined to participate. Eight National Coal Wage Agreements have so far been signed as detailed in the table as follows :-


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Company 2008-09 (As on 31.03.2009)

2009-10(As on 31.03.2010)

2010-11(As on 31.12.2010)

ECL 90470 85617 82090BCCL 76369 71838 68816CCL 56553 54057 52864WCL 62492 60870 59376SECL 81434 79781 78272MCL 20869 20978 21441NCL 16450 16373 16289NEC 2962 2820 2648CMPDIL 3065 3156 3117DCC 620 600 589CIL(HQ) 1066 1048 1028TOTAL 412350 397138 386530

National Coal Wage Agreement (NCWA)

Signed on Period of Agreement From To

Duration period of Agreement

NCWA-I 11.12.1974 1.1.1975 31.12.1978 4 YearsNCWA-II 11.08.1979 1.1.1979 31.12.1982 4 YearsNCWA-III 11.11.1983 1.1.1983 31.12.1986 4 YearsNCWA-IV 27.07.1989 1.1.1987 30.06.1991 4&1/2YearsNCWA-V 19.01.1996 1.7.1991 30.06.1996 5 YearsNCWA-VI 23.12.2000 1.7.1996 30.06.2001 5 YearsNCWA-VII 15.07.2005 1.7.2001 30.06.2006 5 YearsNCWA-VIII 24.01.2009 1.7.2006 30.6.2011 5 years

10.2.7 Manpower

The total manpower of CIL including its

subsidiaries as on 31.12.2010 is 386530. the Company-wise position of manpower for last three years is given below :-

10.2.8 Industrial Relations

The Industrial Relations scenario in Coal India Ltd., and its subsidiary companies during the year remained cordial. Regular structured meetings were held with the operating Trade Unions at different levels.

10.2.9 Workers Participation in Management

In CIL and subsidiaries there are well established bi-partite fora consisting of the

representatives of the Management and the 5 Central Trade Unions for interaction and redressal of issues related to the wages & service conditions, employment, safety, grievances, welfare etc. The following joint bipartite fora are operating at different levels: -

1. JBCCI at CIL

2. Apex Jt. Consultative Committee


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Strike and Bandhs

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11(up to Dec.10)

No.of strikes

10+1* 5+1* 6+1* 2+0*+2** 3+1*+2* Nil 2*+2**

Man days Lost

70172 176898 127703 23823 196707 Nil 246899

Production Lost (in tonnes)

324444 193670 193423 95477 239983 Nil 510291

*IS = Industrial Strike **BB = Bangla Band

3. Safety Board/ Safety Committee4. Welfare Board/ Welfare

Committee

10.2.10 Employees Welfare Scheme

The focus of our Welfare Activities is the welfare of our employees and their families. The coal companies are paying greater attention to the welfare of their workers. Every effort is being made to improve the living conditions of the coal miners. In order to create a sense of belongingness and involvement in work, top priority is given by the management to provide housing, medical, educational facilities etc. The results of the welfare measures taken in different areas are as follows:-

10.2.10.1 Housing

At the time of Nationalisation, in Coal India Limited and its subsidiaries there were only 1,18,366 houses including sub-standard houses. The availability of these houses has increased to 4,21,266 (up to 31.12.2010). The percentage of housing satisfaction has now reached 100%.

5. Joint Consultative Committees6. Industrial Relation Meetings

(Structural meetings with union).

10.2.10.2 Water Supply

In the areas of Coal India Ltd. & its subsidiaries 2.27 Lakhs population was having access to potable water at the time of Nationalisation in 1973, presently a populace of 22.94 Lakhs (up to 31.12.2010) has been covered under water supply scheme.

10.2.10.3 Medical Facilities

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

There are 86 Hospitals with 5,835 Beds, 423 Dispensaries, 634 Ambulance and 1474 Doctors including Specialists in CIL and its subsidiaries to provide medical services to the employees.


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Besides 12 Ayurvedic Dispensaries are also being run in the Subsidiaries of Coal India Limited to provide indigenous system of treatment to workers.

In addition, Special emphasis has also been given on Occupational Health, HIV/AIDS awareness programme for the employees and their families.

10.2.10.4 Educational Facilities

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

As a part of Corporate Social Responsibility (CSR) financial assistance by way of grant-in-aid/infrastructural

facilities are also provided to certain privately managed schools functioning in and around coalfield areas by the subsidiary coal companies.

In addition, Coal India has provided following types of scholarship as per scheme to the employees wards as a part of educational facilities.

(1) Coal India Scholarship Scheme (Revised – 2001)

In order to encourage the children of the employees of Coal India Limited two types of Scholarship


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and Hostel Charges who secure Admission in Engineering in such Colleges viz., IITs, NITs, ISM etc which are short listed by CIL for conducting campus selection and also dependent children securing Admission in Govt. Medical Colleges from the Academic Session 2009-10 onwards.

(4) Payment of Coal India Scholarship to 100 Nos. of students who belongs to BPL category and 25 Nos. of wards of land oustees’/displaced persons’ for pursuing degree course (Graduation course) in IITs, NITs and other selected Govt. Engineering Colleges and Central Govt Medical Colleges(MBBS Course)

10.2.10.5 Statutory Welfare Measures

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

10.2.10.6 Non-statutory Welfare Measures

Co-operative Stores and Credit Societies

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

namely Merit and General Scholarship, are being provided every year under prescribed terms and conditions, as following:-

Merit Scholarship

Admissible strictly to the students securing 1st to 20th position in Madhyamik/H.S. or any State Board or securing 95% and above marks in ICSE.CBSE/ISC Exam (Class – X and XII) where merit is not declared.

General Scholarship

Admissible to the students studying Class-V onwards up to Graduation/Post-graduation level in any discipline subject to prescribed percentage of marks.

(2) Cash Award and certificate of appreciation

Every year Cash Award of Rs.5000/- and Rs.7000/- respectively are provided to the Meritorious Wards of CIL employees who secure 90% or above Marks in aggregate in 10th and 12th Standard Board level Examination.

(3) Considering the high cost of technical and medical education in the country Coal India Limited is providing financial assistance towards meeting the cost of education of the dependent children of Wage Board Employees to the extent of Tuition Fees


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Societies are also functioning in the Coal Companies.

10.2.10.7 Banking Facilities

The Management of Coal Companies are providing infrastructure facilities to the various Nationalised Banks for opening their Branches and Extension Counters in the Coalfields for the benefit of the workers. Workers are educated to draw their salaries through 485 Number of Bank/ Extension Counters and they are also encouraged to practice thrift for the benefit of their families.

10.2.11 Resettlement & Rehabilitation ( R & R ) Policy of Coal India Ltd

Coal India’s R & R Policy was first formulated in 1994 and has been in operation with modifications from time to time. The R & R Policy, in vogue since 2000, has been further modified in May, 2008, in consonance with the National Rehabilitation and Resettlement Policy, 2007 (NRRP) notified by the Ministry of Rural Development, Govt. of India.

10.3 Neyveli Lignite Corporation Limited

NLC was registered as a company on 14th November 1956. The Mining operations in Mine-I were formally inaugurated on 20th May 1957 by the then Prime Minister Pandit Jawahar Lal Nehru. Neyveli Lignite Corporation has been conferred with “MINIRATNA” Status.

NLC presently operates four open cast lignite mines viz., Mine I, Mine IA &

Mine II in the State of Tamilnadu and Barsingsar Mine in the State of Rajastha aggregating to a total capacity of 30.6 MTPA and three thermal power stations viz., TPS-I & TPS-I Expansion and TPS-II with a capacity of 2490 MW all located in Tamil Nadu, and Barsingsar TPS in the state of Rajasthan (250 MW) and TPS-II Expansion at Neyveli (500 MW) are under implementation aggregating to a total of 3240 MW.

All the Mines and the Power Stations of NLC have already received ISO Certification for Quality Management System, Environmental Management System, and Occupational Health & Safety Management System.

10.3.1 Authorised Capital

The authorized capital of NLC is ` 2000 crores and paid up equity is ` 1677.71 Crs. The investment by Govt. of India as on 31.12.2010 is as under:

(` In Crores)Equity (GOI portion) 1568.64Loan from GOI (including accrued interest)

Nil

10.3.2 Production Performance

Overburden removal, lignite production, gross power generation and its export during the year 2010-11 up to the end of December 2010 and provisional for the period January 11 to March 2011 are indicated as follows :


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Product Unit BE2010-11

April 10 to December 10 Prov. Jan. 11 to Mar. 2011Target Actual

Overburden MM3 158.10 1161.65 1192.94 388.06Lignite MT 24.14 17.57 16.41 5.48Power Gross MU 18758.00 13520.00 12730.51 3955.49Power Export MU 15642.00 11264.00 10608.27 3305.92

10.3.3 Productivity

The productivity performance in 2009-10

a. Output Per Manshift (OMS)

b. Plant Load Factor

The PLF achieved by TPS-I, TPS-I Expansion and TPS-II during 2009-10 and 2010-11 up to the end of December 2010 are as under:-

Unit 2009-10 2010-11 (April 10 to December 2010)Actual Target Actual

Mines Tonne 10.70 8.93 10.38Thermal KwHr 17380 12699 16987

Unit 2009-10 2010-11 (April 10 to December 2010)Actual Target Actual

T.P.S-I 78.28 69.19 69.20 T.P.S-IE 80.98 76.41 78.34 T.P.S-II 82.01 72.07 79.14

and 2010-11 up to the end of December 2010 is furnished in the table below:-

10.3.4 Financial Performance

NLC has been making profits since 1976-77. During 2009-10 the Corporation earned a pretax profit of ̀ 1604.86 Crores. The Corporation has earned pretax profit of ` 929.34 Crores (Provisional) during 2010-11 (up to November 2010) and ` 197.63 Crs provisional for the period December 10 to March 2011. Reserves and surplus as on 31.03.2010 was

` 8646.96 Crs. NLC has paid 20 % dividend amounting to ` 391.91 Crores including distribution tax for the year 2009-10.

The sales turnover in 2009-10 was `4121.03 Crores against `3354.91 Crores (including Prior adjustment) during 2008-09. The sales turnover during 2010-11 (up to November 10) was `2812.51 Crores (Provisional) as against


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The Industrial Relations during the period April to December 2010 was by and large smooth and cordial. The non recognized trade unions went on strike between 2nd June 2010 night shift to 3rd June 2010 second shift to include certain demands in the wage revision for workmen with effect from 01.01.2007. The recognized Trade Unions viz. Tho. Mu. Sa and Pattali Thozhir Sangam along with other non-recognized unions commenced strike from the 3rd shift on 30th June 2010 for early settlement of wage revision for the unionized workmen. The Regional Labour Commissioner / Central, Chennai conducted conciliation proceedings from 01.07.2010 to 05.07.2010. After protracted negotiation and conciliation meetings by RLC, at Chennai, Memorandum of Understanding was reached. Certain non-recognized trade union went on strike between 6th September 2010 night shift to 7th September 2010 second shift

`2150.60 Crores during the corresponding period of last year and `1260.01 Crs., provisional for the period December 2010 to March 2011.

Product wise sales during 2010-11 (Up to November 2010) is as under:-

Product Sales (Provl.) (` in Crores)Lignite 230.06Power 2586.18Other 0.27Total 2812.51

10.3.5 Manpower

The total manpower of NLC as on 31.12.2010 is indicated below:-

Category Technical Non- Technical

Total

Executives 3439 717 4156Non Executive

4608 3279 7887

Workmen 697 5384 6081Total 8744 9380 18124

CMD NLC presents dividend cheque to Hon’ble Minister of Coal


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in support of the call given by all India trade against the Government Policies. However, there was no loss of production.

10.3.7 Employees Welfare

Welfare measures under the following heads have been extended to the employees

l 100 % Housing to Employees l Subsidised Canteen Facilities and

Uniforms/Footwear l Conveyance Reimbursementl Merit Scholarships to School

Studentsl Special Scholarships to SC/ST

Studentsl Group Accident Insurance Schemes l Special Increments for Acquiring

Higher Qualificationsl Long Service Awardsl Marriage & Superannuation Giftsl Free Medical Treatment to Employees

& their Dependentsl Terminal payments including

Provident fund on the date of retirement

l Post Retirement Medical Benefit Scheme.

l Death Relief Scheme.

10.3.8 Resettlement & Rehabilitation ( R & R) Policy of Neyveli Lignite Corporation

The implementation of Resettlement and Rehabilitation Policy (RAP) has since been discontinued and has been substituted with the National Rehabilitation and Resettlement Policy,

2007 (NRRP 2007) published on 31.10.07 by the Government of India, Ministry of Rural Development and as directed by Government of Tamil Nadu. Accordingly, NLC is following the National Policy on Rehabilitation and Resettlement, 2007, for the ongoing projects with certain enhancements, aimed at minimizing the adverse impacts on the affected people and for the benefit of the project affected population. The R&R measures are being implemented as directed by the R&R Administrator. NLC also executes capital works in the peripheral villages through an exclusive scheme for sustainable development of the region.

10.3.9 Future Plans

NLC in it’s endeavor to become a leading lignite mining and Power Company has embarked on the following projects:

1. 1600 MW Thermal Power Plant with 13.5 MTPA capacity lignite Mine at Jayamkondam

2. 1000 MW TPS at Neyveli in lieu of existing TPS-I

3. 250 MW Thermal Power Project with 2.25 MTPA lignite mine at Bithnok.

4. 250 MW Thermal Power Project as Barsingsar Extension with 2.5 MTPA Hadla & Palana lignite mines

5. 1000 MW Lignite based Power Project with 8.0 MTPA linked lignite mine in South Gujarat.

6. 2000 MW Coal based Thermal Power Plant at Orissa & A joint Venture Talabira Mine Project (20 MTPA) with MCL & Hindalco.


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7. A Joint Venture coal based 2000MW power project in western Uttar Pradesh by UPPCL and NLC.

8. 1000 MW TPS-III at Neyveli and linked 8.0 MTPA Mine-III at Neyveli.

9. 50 MW Wind Power Project.

10.4 Singareni Collieries Company Limited

10.4.1 The Singareni Collieries Company Limited is a State Enterprise of Government of Andhra Pradesh in which Government of Andhra Pradesh and Government of India hold equity capital in the ratio of 51:49 respectively.

As per the Tripartite Agreement between SCCL, Government of Andhra Pradesh & Government of India, SCCL Board can approve new projects with capital expenditure upto ` 500 crore. Power projects with capital investment of more than ` 500 crore now be approved by the State Govt. However, projects costing over and above ` 500 crore will be approved by Government of India.

10.4.2 Coal Production in SCCL

( in Million Tones)Target

(2010-11)Actual Production (2010-11)

upto December, 201046.00 36.33

10.4.3 Productivity

The OMS during 2010-11 (April’10 to Dec.’10) is 3.42 tonnes (Provisional) against 3.23 tonnes during the same period in 2009-10 as indicated as follows :-

2010-11 ( upto Dec.’10 )

2009-10 ( upto Dec.’09 )

OMS in tonnes

3.42* 3.23

* Provisional10.4.4 Manpower

As on 31.12.2010, employees on roll of SCCL are 67,980 including 2,417 female employees.

10.4.5 Employees Welfare

The SCCL is taking all possible measures to provide welfare amenities to its employees, particularly in the field of health, sanitation, residential accommodation, education to workers children, supply of water, laying of roads, improving health awareness among employees and their families through communication cell, sports and games to provide recreation in addition to various Social Security Schemes.

SCCL has spent ` 38,233 per employee towards Welfare expenditure during 2009-10.


The Industrial Relations Scenario in SCCL for the year 2010-11 (upto December, 2010) recorded 1 (one) Strike. The Management has laid down clear Industrial Relations Policy providing for mechanism to discuss the issues with Recognised Union at Company level and Area level and with Representative Status Union at Area level.

By introducing reforms, harmonious


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Sl. No. Year No. of Strikes Mandays lost Production Lost (in tonnes)1 2002-03 35 16,30,798 6,47,4262 2003-04 15 1,02,942 1,21,6473 2004-05 14 91,818 57,4994 2005-06 11 2,40,403 1,10,1895 2006-07 03 5,587 9,8726 2007-08 Nil Nil Nil7 2008-09 04 23,065 19,0728 2009-10 02 1,430 4,8939 2010-11 (up

to Dec,201001 49,910 1,08,952

Industrial Relations are being maintained through systematic co-operation between the labour and the Management, in reducing costs, increasing the production and productivity, improving quality of work

and maintaining Industrial Peace & improvement in overall quality of life.

All these measures contributed for reduction in number of strikes, as can be seen from the following details :-

International Cooperation

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Chapter-11


11.1 SAARC Technical Seminar on Coal

As per decision taken in the SAARC Energy Ministers meeting held on 7.3.2007 in India, Ministry of Coal conducted a SAARC Technical Seminar on Coal on 16th October, 2007 in Kolkata on the strategies on promotion of coal development and clean coal technologies in SAARC region. Nine delegates from different SAARC member countries excepting Maldives participated in the Seminar. The 4th meeting of the SAARC working Group on Energy was held in Islamabad during 26-27th March, 2008. The Working Group reviewed the status of implementation of various decisions taken earlier by SAARC Energy Ministers and the working group and the Energy Dialogue. The 5th meeting of the SAARC Working Group on Energy was held during 29-30 April, 2009 in Thimpu, Bhutan. As decided in the meeting, draft Terms of Reference (ToR) for Coal for the Expert Group on Technology/knowledge sharing under the SAARC Working Group has been proposed by this Ministry.

11.2 European Union (EU)

The India-EU Energy Panel was constituted as a follow up of a decision taken at the 5th India-EU Summit held in Hague in November, 2004. The first meeting of the Indo-EU Energy Panel was held in Brussels on 29th June, 2005 in which emerging energy scenario and future prospects for development of the fuel chains and key

priorities for cooperation were discussed. The Panel decided to set up working groups in the following areas :

• Coal and clean coal conversiontechnologies

• Energy efficiency and renewableenergies

• Fusion energy including India’sparticipation in International Thermo nuclear Experimental Reactor (ITER) project.

As a follow up of the decision made by the Panel, the Working Group on Coal and Clean Coal Technologies was constituted in March, 2006. 1st meeting of the working group on Coal and Clean Coal Conversion Technologies was held on 22-3-2006 at New Delhi. 2nd meeting of the India – EU Working Group on Coal and Clean Coal Technology was held on 28.11.2006 at Brussels, Belgium. Various areas discussed for cooperation were:

i) Capacity creation in resource assessment of CBM/CMM/AMM

ii) In-situ coal gasification.iii) Coal beneficiation for coking and

thermal coals iv) Development of mining methods for

steep and thick seam working.

The meeting of Indo-EU CWG to discuss Coal Conversion Technologies was held on 21.1.2008 in New Delhi, where power sector proposed areas of cooperation for improved


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efficiency in coal utilization for power generation. The 4th meeting of the Indo-EU CWG on clean coal technologies was held in Brussels during 17.6.2008. The areas identified for cooperation were Steep Seam mining, underground coal gasification and underground mine rescue. The 5th meeting of the Indo-EU Energy Panel meeting was held on 6.10.2009 in Brussels and the 6th meeting of the Indo-EU was held during 12-14 April, 2010 in Spain. The progress made by the working group on coal and clean coal technologies was reviewed and steps to improve the Indo-EU cooperation further were discussed.

11.3 Republic of South Africa

1. A Joint Working Group on Coal with South Africa was constituted in 2003 and the first meeting of the Working Group was held in New Delhi on 29-30th July, 2008. At present Secretary, Ministry of Coal is Co-Chair and there are four members including Chairman/CIL and Director General/Mines Safety.

2. The specific areas for cooperation identified by the Indian side includes mechanization of Board and Pillar System of underground mining, beneficiation of coal and technology of Conservation of Coal to Liquid (CTL). Some other new areas for cooperation were also identified during the last meeting held in July, 2008.

3. Some of the areas identified in the course of the meeting were mechanization of underground coal mining, Hard Roof Management

techniques, development of Coal Bed Methane, underground coal gasification, identification of coal blocks, facilitation for forging Joint Ventures between CIL and Black Economic Empowerment (BEE). Both sides agreed to continue exchange of information and dialogue for developing a road map for the South African coal sector.

4. As per the agreed decisions, the next meeting of the Coal Working Group was required to take place in South Africa on a mutually convenient date. MEA is pursuing the issue with South Africa side to firm up possible date(s) for hosting the next meeting of CWG in South Africa.

11.4 Mozambique

Government of India and Government of Mozambique are having a Joint Working Group on Coal. An MOU between Government of the Republic of India and the Government of the Republic of Mozambique on cooperation in the fields of coal resources was concluded on 26.05.2006. The meetings of the Coal Working Group have been held once in India and once in Mozambique. First meeting of Indo-Mozambique Joint Working Group on Coal was held on 07.04.2007 in Maputo. Second Joint Working Group meeting on Coal was held on 30.03.2009 in New Delhi. In February 2009, Govt. of Mozambique have allocated two coal blocks in Tete Province, Mazambique to CIL. CIL has already initiated action for exploration and exploitation of these two blocks.


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Coal India Africana Limitada, a wholly owned subsidiary of Coal India Limited has been granted Prospecting Licenses 3450L and 3451L for coal by the Ministry of Mineral Resources, Govt. of Mozambique w.e.f. 06.08.2009 for a period of five years based on the winning Bid by CIL against tender no. 06/DNB/08 dated 18.12.2008.

Apart from two coal blocks already allocated to Coal India Africana Limitada, Mozambican side has been persuaded to allot more coal blocks so that exploration infrastructure can be optimally utilized and more coal resources are available for future exploitation.

11.5 Japan

The 4th meeting of the Indo-Japan Energy Dialogue was held in New Delhi on 30th April, 2010 wherein Deputy Chairman, Planning commission of India and Minister of Economy, Trade and Industry (METI) of Japan had issued Joint Statement identifying important areas of energy cooperation between India and Japan. The salient fetures of the Joint Statement, are as under:-

l Formulation and completion of the action plan on high-efficiency and low-emission coal technologies by Japan and India.

l Efforts on technology transfer aiming at improving the efficiency of India’s domestic coal use and reducing environmental impact, commercial-based model project for high-efficiency coal preparation in India, signing of a MOU by NEDO and the Ministry of Coal, continued

discussions on possible cooperation in the area of coking coal washing.

l Conduct a pre-primary study for improvement of efficiency and environment of coal-fired TPP in India by dispatching experts and providing advice on modifications and signing of a MOU of the study on improving the thermal efficiency of coal-fired TPP in India and reducing their environmental impact by JCOAL, Japan and CEA, India.

l Continuation of the training programme regarding the transfer of Clean Coal Technology (CCT).

l Electricity generation, Training progremme on thermal power technology by JICA and the implementation of the study on enhancing the efficiency of operating TPP in NTPC.

l First India-Japan Joint Venture manufacturing plant for supercritical pressure boilers and turbine generators, which will operational shortly. The JV was set up with financial support from the Japan Bank for International Cooperation (JBIC).

l The areas of cooperation proposed by India are: (a) development of integrated underground communications system (b) instrumentation for monitoring of mine gases and fires (c) detection of partings between adjoining water-logged unapproachable workings and (d) rescue equipment and operations.

l Proposal of the Japanese side to hold the Clean Coal Seminar on Japan-


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India cooperation in areas such as low-carbon coal-fired power plants in India this year was welcomed by Indian side.

11.6 Russia

The 5th meeting of the Working Group on Mines & Metallurgy was held in Moscow on 8-9 October, 2009. The salient features of the meeting are:

l During the meeting Indian side informed about interest of Indian companies in securing coking and thermal coal deposits in Russia as well as in securing access to frontline technologies in this area. Russian side requested Indian side to send specific information on volume demand and qualitative requirement of coal as well as interest of Indian investors in participating in coal projects in Russia.

l M/s. Zarubezhugol has expressed their interest to continue work on the Indian investments into the coal industry of Russia and also expressed their interest in export of non-coking and coking coal.

l Both sides noted the interest of the Russian and Indian companies in cooperation and expansion in the coal industry and agreed to support prospective projects in this sphere.

l M/s. Zarubezhugol, M/s. Giproshakht and other Russian organizations have expressed interest in participation in tenders for performance of works on designing, building new and reconstruction of the operating

coal enterprises, deliveries of the mountain-mine and mountain-transport equipment and spare parts.

l The Russian side requested Indian side to provide the updated expansion plan of Indian coal industry in order to give a definitive direction.

l Russian side conveyed that M/s Zarubezhaugol and other Russian scientific and research institutions are ready to participate in the design works on a contract basis of Indian research and project institutes, working in sphere of the coal industry.

l Giproshakht and VNIMI have requested the Indian side to expedite the signing of Memorandum on Cooperation between Giprosphakht and VNIMI with CMPDIL.

l The Working Group noted the readiness of Zarubezhugol and Giproshakht to train the Indian experts on a contract basis in the research and design institutes on modern technologies of designing of coal (underground and coal open-pit mining), designing and manufacture of the modern mountain-mine equipment, for acquaintance with modern technologies for both OC and OG mining.

l Ministry of Coal has desired inputs on the following issues for the 3rd meeting of the Joint Task Force:

l Information exchange in the field of mining equipment production

l Metallurgy and mining – Russian experts keen providing consulting services to Indian steel, coal and energy companies.


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11.7 Belarus

A meeting was held between Minister of State (I/C) Coal & SPI and First Deputy Prime Minister of Republic of Belarus on 25.10.2010 with officials of Ministry of Coal & Public Sector Undertaking coal companies. It was suggested that, in case Belarus was successful in getting the order for supplying dumpers through tenders that has already been floated by CIL, they would develop suitable after sale service mechanism including provision for training of HEMM operators through simulators as the contracts will be for a period of 12 years including maintenance and repair contracts of equipment. It was agreed by the first Deputy Prime Minister, Republic of Belarus. Hon’ble Minister (I/C) Coal and SPI and senior officials from the Ministry were invited to visit Belarus to have on site inspection of their equipment manufacturing facilities in Belarus.

11.8 Australia

SCCL Board during its meeting held on 4-9-2006 approved the proposal for under taking Technical Studies in association with CSIRO, Australia. and SCCL have signed collaborative Research Agreement during January, 2007. At present CSIRO, Australia is conducting the following Projects in SCCL:

1. Thick Coal Seam Extraction2. Mine Fires Prevention and Control3. Stability of dumps and slopes in

opencast mines.

The first meeting of India Australia Coal Task Force (CTF), constituted under

India Australia Joint Working Group, was held on 08.06.2010 at Perth, Australia. The progress/status of all concerned activities was intimated to the CTF by the Indian side (copy enclosed) and also requested Australian side to expedite action on activities, pending from their side specially on the work on draft MOU between CMPDIL and CSIRO, Australia. Similarly, Australian counterpart had also reciprocated and presented their side and stressed on to more exchange of ideas and to chart the road ahead for collaboration between the two countries in the fields of energy and mineral resources.

11.9 Germany

The Joint Working Groups (International Cooperation) with US, Australia, Germany, Poland, Russia, Japan, Canada, Kazakhstan, China etc. are being operated in obtaining the relevant technologies & other strategical issues between India and the above countries.

Coal Industry Interface Germany meeting was held in November 2010 at Kolkatta, India. The agenda includes (a) Technical assistance in exploration and methods of extraction of CBM. (b) Under ground coal gasification of deep seated lignite deposits. (c) Bottom ash disposal in de-coal area of working mine (d) Application of major technology in blasting. (e) Ground water management. Minutes of the meeting have been received.

The Eighteenth Indo German Working Group meeting is likely to be held in June-July, 2011


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11.10 USA

The Indo-US Coal Working Group has been actively functioning since July 2005 and several activities have been undertaken in different areas of interest. A few meetings of the Indo-US Coal Working Group (CWG) on Coal, have also taken place and progress in respect of activities under Indo-US Coal Working Group is being reviewed from time to time in the Planning Commission as well as in Ministry of External Affairs. The last (6th) meeting of the Indo-US Coal Working Group under the aegis of Indo-US Energy Dialogue was held during 22nd – 24th September, 2009 in Washington, USA.

The next CWG meeting will be held on 24.03.2011 in India. Mr. James F. Wood, United States’ Deputy Assistant Secretary for Clean Coal is proposed to lead the US delegation for the CWG meeting.

11.11 Asia Pacific Partnership

India is one of the partner countries under 7 countries of Asia Pacific Partnership on Clean Coal Development and Climate (APP). India is also the Co-chair of Coal Mining Task Force (CMTF) created by policy and implementation Committee (PIC) of APP. Out of 18 projects identified initially for cooperation, India had proposed 7 projects. The 5th meeting of CMTF took place in Las Vegas, USA in Sept, 2008 in which three more new projects were proposed by CIL. As Co-Chair of CMTF, representatives of Ministry of Coal companies have also participated in the PIC meeting of APP held in Seatle, USA (May, 2008) and Vancouver, Canada (October, 2008).

7th meeting of CMTF was held from 14-16 Sept, 2010 at Whistler, British Columbia, Canada. In the meeting, Indian side presented statistics on coal industry and showed their interest in faster coal production and emphasized on clean coal technology through partnership with various countries. Flagship Activity Updates was made through information sharing on Coal Processing Technologies (India and US). Status of Indian project was informed under Task Force Project Updates. In this meeting, following decisions were taken :-

1. CMTF meeting held on 14-16 Sept, 2010 was decided to be the last meeting of CMTF. The PIL decided to phase out CMTF at Bonn, Germany.

2. In the meeting, different projects that have been completed were noted and it was agreed to transfer some of the existing projects to be completed through other bilateral forum. It was noted that all on-going projects could be covered by the proposed changeover.

11.12 Malasia

Some of the upcoming projects in ECL in collaboration with Malasia are:

a) Kotadih Continuous Miner (capacity 0.51 + 0.09 = 0.60 MT)

b) Bansra Continuous Miner (New Project)

c) Haripur Continuous Miner (new project) (estimated capacity o.51 + 0.09 = 0.60 MT)

d) Madhaipur Extension (Low Height CM), (Rangamati B) (New Project)


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Project Reports are under preparation for serial no- (b) to (d) and for serial no (a) action is being taken for CIL board approval.

11.13 Indonesia

An MoU between the Ministry of Coal and the Ministry of Energy & Mineral Resources of Govt. of Indonesia has been signed on 10.6.2010 on the establishment of the Working Group to cooperate in areas such as promotion of trade and investment in the coal sector, enhancing understanding of coal related energy issues, promotion of exchange of information on policies, programmes, and technologies etc.

11.14 Kazakhstan

Ministry of Coal vide letter No.14020/4/2010-CPAM, dated 11.8.2010 forwarded a copy of latter dated 28,.07.2010 from Ministry of Commerce & Industry, Department of Commerce, Govt. of India informing that in the 7th Session of India-Kazakhstan Inter-Governmental Commission it was decided to set up Joint working Group on Trade and Economic Cooperation with a view to working out strategies for promoting bilateral

commercial and economic cooperation. The India-Kazakhstan WJWG has been set up under the Co-Chairmanship of Joint Secretary (FT-CIS), Ministry of commerce & Industry, Department of commerce, from Indian side.

The Department of Commerce has proposed to the Kazakh side to hold the 1st meeting of India-Kazakhstan JWG in November, 2010 and requested Coal India Limited to furnish the following information:-

• Itemsproposedtobeincludedinthediscussions during the 1st meeting of India-Kazakhstan JWG.

• Draft Para to be included in thesuggested protocol of the 1st meeting of India-Kazakhstan JWG.

Central Mine Planning & Design Institute Limited (CMPDIL) has informed that they have not any specific comments pertaining to the aforesaid meeting . However, CMPDI is already providing consultancy services in the field of mining and allied engineering services to CIL and outside organization. CMPDIL and CIL can collaborate on mutually identified areas in coal mining with Kazakhstan, in future.


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Chapter-12

Development Activities in North Eastern Coalfields12.1 In the North Eastern Region, Coal India

Limited have its mining activities mainly in Makum Coalfields of Assam. At present four (4) nos. of mines are in operation. These are Tirap, Tikak, Ledo OCP and Tipong. Out of these, Tirap, Tikak and Ledo OCP are Open cast Projects while Tipong is Under Ground Mine. Ledo

Open Cast Project (Ledo OCP) was started in the Financial Year 2008-09. Production in NEC though depleted gradually from 10.00 lakh tonnes in 1987-88 to 5.72 Lakh tonnes in 1999-2000, it has again started improving from the year 2005-06 onwards as shown in the following table:

(Fig. in Lakh Tonnes)Year 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 (Prov.)

Coal Production of NEC 11.00 10.50 11.01 10.09 11.13 11.00

In the current year till 31.12.2010, 6.44 Lakh tonnes of coal have been produced and it is expected that the production of 11.00 Lakh tonnes will be achieved by 31st March, 2011. Due to the occurrence of a fatal accident on 03.11.2008 (3rd shift ) at Ledo Colliery, DGMS has temporarily sealed-off the Ledo U/G Mine and imposed Section 22 (3) of Mines Act- 1952 in other 2 (two) U/G Mines

i.e. Tipong and Baragolai since 07.11.2008. However, DGMS has given permission to do only the development works at Tipong Colliery in the first week of Nov. 2010. Because of that, presently, there is a nominal production of coal from Tipong U/G Mine. Subsequently, abandoned mine Plan for Ledo U/G & Baragolai U/G Mines have been submitted .to DGMS Dt.29.05.2010 and Dt.12.07.2010 respectively.

12.2 Performance of NEC During 2010-11 (Till 31st December, 2010) (Actual) 1 Coal Production Unit Quantity

i) Under Ground Lakh Tonnes 0.01ii) Open Cast ” 6.43TOTAL ” 6.44

2 O.M.S.i) Under Ground Tonnes 0.002ii) Open Cast ” 5.52iii) Overall ” 1.66

3 Coal despatch / Off takei) Despatch Lakh Tonnes 7.13ii) Domestic Consumption ” 0.00iii) Off take ” 7.13

4 Pit- head Coal Stock as on 31.12.2010 ” 2.255 No. of Mines Working 04


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12.3 Projected Performance of NEC during 2010-11 (January, 2011 to March, 2011) (Provisional)

1 Coal Production Unit Quantityi) Under Ground Lakh Tonnes 0.01ii) Open Cast ” 4.55TOTAL ” 4.56

2 O.M.S.i) Under Ground Tonnes 0.01ii) Open Cast ” 11.71iii) Overall ” 3.53

3 Coal despatch / Off takei) Despatch Lakh Tonnes 3.87ii) Domestic Consumption ” 0.00iii) Off take * ” 3.87

4 Pit- head Coal Stock as on 31.03.2011 ” 2.945 No. of Mines Working 04

* Anticipated

12.4 Performance of NEC

Though NEC was incurring heavy losses barring a few years in the past, it has started earning overall profitability (U/G Collieries

are still in losses) since 2005-06. The profitability for the Last four years has been shown in the table below:

(Fig. in Lakh Rupees)

MINES 2006-07 2007-08 2008-09 2009-10Tipong (U.G.)* (-) 3011.28 (-) 4022.65 (-) 6057.98 (-) 5130.20Ledo (U.G.) * (-) 1508.20 (-) 2124.26 (-) 3048.06 (-) 2190.07Baragolai (U.G.)* (-) 3004.00 (-) 4053.87 (-) 5522.19 (-) 3875.20Jeypore (U.G.) * (-) 29.72 (-) 55.25 (-) 75.11 (-) 54.78Tirap (OC) (+) 6438.33 (+) 7567.84 (+) 11230.30 (+)15212.75Tikak (OC) (+) 2904.77 (+) 6609.66 (+) 7483.34 (+)11588.32Ledo OCP -- -- -- (+) 2082.38TOTAL NEC (+) 1789.90 (+) 3921.47 (+) 4010.30 (+)17633.20

* Though operation is suspended, however cost is incurred towards salary-wages and power cost for establishment maintenance.

12.5 NEC’s Production Programme

In NEC, at present there are altogether four(4) existing working mines, 3 Open

Cast Mines and 1 Under Ground Mine & every year around 1.1 Million Tonne coal is produced from these 4 mines. But, the major contribution of coal production for


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NEC’s Production Programme from New Projects during XI Plan and XII Plan

(Fig. in MT)

Ledo Mech. OCP

0.085 0.130 0.100 0.150 0.150 0.150 0.150 0.150

L e k h a p a n i OCP

-- -- -- 0.050 0.070 0.140 0.250 0.250

Lachitkhani OCP

-- -- -- -- 0.300 0.300 0.300 0.850

Tipong OCP -- -- -- 0.070 0.080 0.0600.400 0.600

PQ Block OCP

-- -- -- 0.030 0.100 0.150 0.150 0.150

Tirap Phase II

-- -- -- 0.200 0.200 0.300 0.400 0.400

Tikak Ext.-- -- -- 0.200 0.200 0.200 0.200 0.200

TOTAL 0.085 0.130 0.100 0.700 1.100 1.300 1.850 2.600

this Financial Year i.e. 2010-11 will come mainly from Open Cast Projects i.e. Tirap Open Cast Project, Tikak Open Cast Project and Ledo Open Cast Project (Started in the Financial Year 2008-09). There will be nominal production of coal from the under ground mine of NEC for the current Financial Year i.e. 2010-11.

Besides, NEC has identified seven nos. of New Projects, which are at various stages of construction (Out of which Ledo OCP has started production of coal from the Financial Year 2008-09). The coal productions from other New Projects are likely to be started during XI Plan and the beginning of XII Plan. The schedules of production from these Mines are shown in the table below:


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Chapter-13

Progressive Use of Hindi

13.1 Ministry of Coal with all its Subordinate offices/ Companies and Autonomous Body kept its efforts continued for propagating and spreading the progressive use of Official Language Hindi during the year 2010-11. This Ministry is committed to increasing the use of official language. Instructions received from Department of Official Language, Ministry of Home Affairs and Committee of Parliament on Official Language are circulated regularly to the Officers/sections of the Ministry as well as the administrative heads of Subordinate Offices/Companies and Autonomous Body under administrative control of the Ministry to ensure implementation of the statutory provisions of Official Language Policy of the Union and to fully achieve the targets fixed in the Annual Programme issued by Department of Official Language.

13.2 In order to increase the use of Hindi in day-to-day official work, various circulars, orders and appeals have been issued regularly. With a view to facilitating noting and drafting in Hindi, bilingual standard drafts, English - Hindi dictionaries, help books etc. have been distributed amongst all officers/sections of the Ministry. A copy of the Annual programme issued by the Department of Official Language for the year 2010-11 for transacting the official work of the Union in Hindi has to be circulated amongst all the officers & sections of the Ministry as well as Subordinate Offices/Companies & Autonomous Body

under the administrative control of the Ministry for achieving the targets fixed for implementation of Official Language Policy of the Union.

13.3 Ministry of Coal is fully computerized with bilingual facilities. Besides, the Website of the Ministry has been prepared in bilingual form (Hindi/English) and is updated from time to time.

13.4 The Official Language Implementation committee is already functioning in the Ministry. The meetings of the committee are being organized regularly under the Chairmanship of Economic Advisor of the Ministry. All Subordinate Offices /Public Sector Undertakings and Autonomous Body under its administrative control are also organising such meetings wherein due emphasis is laid on increasing progressive use of Hindi in official work.

13.5 With a view to create conducive atmosphere for working in Hindi and accelerating the use of Hindi as Official Language in official work in the Ministry and the Subordinate Offices / Companies and Autonomous Body under its administrative control. The Ministry organised ‘Hindi Pakhwara’ from 14.09.2010 to 28.09.2010. During the Hindi Pakhwara, various Hindi Competitions were organised for each category of the employees as also for officers. Cash award and certificates were given away to winners by Secretary (Coal).


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13.6 In order to remove the hesitation of officers and employees to work in Hindi, Ministry organizes Hindi workshop from time to time. The Ministry always lays emphasis on imparting training in Hindi Language, Hindi Stenography and Hindi Typing under Hindi Teaching scheme by nominating the employees.

13.7 The 3rd Sub Committee of Committee of Parliament on Official Language inspected some offices under the administrative control of the Ministry to oversee the status of use of Hindi in Official work and to ensure that the provisions of Official Language Act and Rules made thereunder are properly complied with and also to suggest the ways and means for effective implementation of Official Language Act in the official work. An inspection team of the Ministry Comprising Economic Advisor and A.D. (O.L.) also inspect verious offices under the administrative

control of the Ministry.

13.8 The Ministry purchases Hindi books for library each year so that conducive atmosphere can be created in order to increase the use of Hindi and officers/employees can promote their knowledge of Hindi by reading them.

13.9 An electronic notice board for display of new Hindi word daily is under finalisation with the objective of propagating and promoting Hindi among all the officers and employees of the Ministry.

13.10 The Ministry has reconstitued Hindi Advisory Committee attached to it and a notification to this effect has already been issued an 23.03.2011. The Process for convening its meeting is already underway.

13.11 The Ministry is in the process of bringing out 9th issue of its Hindi Magazine “ KOYAL” with a view to boost the atmosphere for working in Hindi.


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Chapter-14

Progress of Information Technology Implementation

14.1 One of the most important measures envisaged for accountability, transparency and efficiency in Government administration is easy and speedy access of information. Keeping this objective in view, Ministry of Coal in close cooperation with NIC has made efforts to use ICT to improve its administrative processes for timely service delivery.

14.2 An IT based Computer Centre, set up by National Informatics Centre (NIC) is operational in the Ministry which is equipped with computer systems for providing applications and database support, Internet and network facilities for local and global connectivity. NIC COAL Centre since over last two decades is delivering valuable key services in the Ministry namely technical ICT consultancy, software development, training & implementation, web services, networking, Internet & Email and database management.

14.3 The Ministry has provided Windows based PCs to all officers, personal staff and sections. A high speed Local Area Network (LAN) is functioning in the Ministry. All PCs along with servers are put on LAN to provide interconnectivity, Internet facility and access of the applications from the server. The office of this Ministry situated in Lok Nayak Bhawan has also been provided LAN with Internet and Email facilities. Office of Secretary Coal has been equipped with NIC’s IP based Video Conferencing System – EVCS.

14.4 A vibrant Web Site of Ministry is operational which has been designed, developed and hosted by NIC. It provides rich content such as details of senior officers, organizational setup of the Ministry, subordinate offices links, policies, annual reports, publications, acts, rules, notifications etc. The Web Site also contains all the important information in line with Right to Information Act, 2005. Latest announcements, advertisements, quotations, reports, minutes of meetings of Screening Committee are placed on the website.

14.5 The Ministry has taken steps to implement IT in their day-to-day working. Senior officials of the Ministry have been provided with Appointments and Task Monitoring System. The system is used for on-line access of the appointments/engagements.

Official correspondence is being done through NIC E-mail to expedite actions.

14.6 The official diary and file movement activities have been automated using the Office Procedure Automation Package (OPA) developed by NIC. This has streamlined file and receipt tracking in the Ministry and has become an effective monitoring tool for reducing pendencies at all levels.

Pendency Monitoring System on Categorized references like VIP, PMO, RTI, NHRC, Parliament Assurances and Audit Paras has been developed to streamline and


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monitor these references between Ministry and Coal Companies.

14.7 The Ministry has integrated various IT services, facilities and applications through an Intranet based Portal for Ministry of Coal - a single window having links to useful applications like: Coal notice board, incumbency MIS, VIP/MP reference monitoring, tour-leave details of officers, GPF details, Income Tax calculation, Pay slips generation, pending bills alerts, leaves details of employees, common downloads and Coal E-library.

14.8 With the aim to promote Rajbhasha Hindi, computers in Ministry have been provided bi-lingual facility. Bi-lingual interface is provided to various applications to increase the use of Rajbhasha. Bi-lingual forms have been posted on Intracoal so that Hindi filled forms are submitted. Useful Hindi links for translations and reference are placed on Intracoal.

14.9 Ministry of Coal has implemented ACC Vacancy Monitoring System to monitor the status of ACC level posts in the Ministry. Details are being fed in the web based package for timely intimation of vacant positions.

14.10 Office of Hon’ble Minister of Coal has been equipped with Despatch MIS and DO letter MIS to cater to queries regarding correspondence coming to Minister office.

14.11 Ministry of Coal has implemented NIC’s Payroll Package –CompDDO. Salary bills, DA arrears, ECS reports and Income Tax related activities are now supported by this robust system. NIC has developed Budget

Reporting MIS which helps to generate timely budget reports.

MIS to manage Audit Paras has been designed for Ministry. This software will help in tracking latest status of audit paras in the Ministry.

14.12 MIS for Allotted Captive Coal Blocks has been developed to maintain detailed Coal Blocks database and to serve queries related to Allotted Captive Coal Blocks. This web based system is designed to monitor the detailed status of progress of allotted Captive Coal/Lignite Blocks.

14.13 Ministry of Coal and all PSUs under Ministry have successfully implemented NIC’s Centralized Public Grievance & Redress Monitoring System (CPGRAMS) software. This helps in monitoring and redressing public grievances with minimum time delay.

14.14 Security is a key issue in cyber world. Steps have been initiated to make all web based applications in the Ministry safe and secure from malicious attacks. Latest Antivirus support is made available. Sincere efforts are made to make LAN/Antivirus/Computers related services available with minimum downtime.

14.15 Ministry of Coal’s NIC Computer Centre organizes User Training & Awareness Programmes from time to time to keep the users well aware about the latest developments in the field of IT.


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Chapter-15

Vigilance Activities and Achievements

15.1 Vigilance Set-Up

15.1.1 The Ministry of Coal exercises superintendence and control over the vigilance administration of 10 Public Sector Undertakings and one Autonomous Body under its jurisdiction as well as over the Ministerial staff. The vigilance set up of the Ministry is headed by a Joint Secretary-cum-Chief Vigilance Officer on part-time basis. He is assisted by a Director, an Under Secretary and a Section Officer. The Vigilance Wings of Coal India Limited, its subsidiaries, Neyveli Lignite Corporation and the Coal Mines Provident Fund Organization are headed by full time Chief Vigilance Officers. There are total 255 executives /non-executives in the vigilance organization of Coal India Limited /its subsidiaries, Neyveli Lignite Corporation and Coal Mines Provident Fund Organization.

15.1.2 Being the watch-dog of coal and lignite Public Sector Undertakings and the Coal Mines Provident Fund Organization, the Ministry pays special attention to streamlining the procedures and practices prevailing in these organizations, while monitoring the functioning of the Vigilance Departments.

15.1.3 Coal India Ltd is the holding company of 8 subsidiary companies spread over the States of West Bengal, Jharkhand, Orissa, Madhya Pradesh, Uttar Pradesh, Chattisgarh and Maharashtra. The

Vigilance Department of Coal India Limited coordinates the activities of the Vigilance Wings of its subsidiaries and also liasions with the Ministry of Coal, Central Vigilance Commission and Central Bureau of Investigation.

15.2. Vigilance Awareness Week

A Vigilance Awareness Period was observed from 25th October 2010 to 1st November, 2010 in the Ministry of Coal, Coal India Limited, its subsidiary companies, Neyveli Lignite Corporation and Coal Mines Provident Fund Organization. As notified by CVC the main focus of observing Vigilance Awareness Period was generation of awareness and publicity against corruption. As a part of observance, a pledge was administered to all public servants. Banners/ posters were displayed. The coal companies organized interactive sessions and various other programmes on the issues of procurement, handling of grievances, material management, improvement of systems /procedures and transparency etc. during the Vigilance Awareness Period.

15.3 Preventive Vigilance

15.3.1 In order to bring about transparency, uniformity and to streamline the procedures and practices in the sensitive areas of working of the Public Sector Undertakings, the following measures were taken for systemic improvement:-


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(i) A seminar on ‘leveraging technology – e-procurement & reverse auction’ was held on 27.10.10.

Chairman, FDs and CVO, CIL, CMDs and CVOs of Subsidiary Companies, G.M.(MMs) and Nodal Officers of CIL & Subsidiary Companies , officials of CIL Vigilance Division were present in the seminar. Among the guests were the Addl. Secretary (Coal), MoC, Vigilance Commissioner, CVC, Secretary, CVC and CTE, CVC. Service providers to CIL i.e. M/S. ITI, M/s. NIC, M/s. m-junction, M/s. MSTC and consultant earlier appointed by CIL to identify areas where IT technology leverage could be gainfully utilized i.e. M/s. Deolitte & Touches Pvt. Ltd. gave demonstration of their system module on e-procurement and reverse auction. Besides M/s. TCS also gave demonstration of their system.

Implementation of Integrity pact (IP) A meeting of various CVOs of the

Subsidiary Companies was convened by CVO, CIL on 09.08.10 to review the working of IP in CIL and Subsidiaries. CVOs of BCCL, CCL, MCL, WCL, NCL, CMPDIL and G.M.(MM), CIL were present in the meeting. After the decisions/resolutions/actions envisaged during the said meeting were approved by Chairman, CIL, CVOs of all the Subsidiary Companies were advised to take necessary action on the relevant matters. The salient points on which action is to be taken by Subsidiary Companies are as follows:-

(a) CVOs of Subsidiary Companies have been requested to collect information in respect of cases where there have

been instances of getting the decision of management vetted by the IEMs before placement of orders.

(b) The format in use in CCL for furnishing monthly report in respect of NITs under IP, starting from pre-NIT stage till completion of work is to be examined and implemented by all CVOs of Subsidiary Companies for proper information flow in respect of IP.

(c) Each Subsidiary Company should take necessary steps to fix the threshold value of the contracts to be covered under IP in such a manner so as to cover 90-95% of the total procurement of the organization in terms of monetary value

(d) Vendors meet should be organized at the Subsidiary level to create awareness and educate the vendors/contractors in respect of implementation of IP. CVOs of the concerned Subsidiary Companies should also be part of the Vendors meet for a wider and realistic compliance of principles of IP.

(e) It is to be ascertained whether after introduction of IP number of complaints have reduced or not and the Subsidiary Companies are to carry out the exercise for last 2 years in comparison to preceding 2 years from the date of implementation of the IP.

(f) As per Clause 3.04 of the SOP regarding implementation of the IP, purchase/ procurement Wing of the respective Subsidiaries/CIL


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would be the focal point in respect of all Departments dealing with IP programme.

(ii) Quarterly reviews were made of disciplinary proceedings pending for more than one year by JS & CVO of the Ministry.

(iii) Identification of sensitive posts, periodic review and transfer of personnel occupying the sensitive posts with reference to CVC guidelines on the issue were carried out.

(iv) Vigilance inspections in corruption prone areas of the industry such as tenders, electrical works, civil works, road construction, over burden removal etc. were carried out.

(v) As a measure for systems improvement, 105 surprise checks were conducted in the Neyveli Lignite Corporation out of which 83 had resulted in vigilance cases and as a result, various circulars were issued regarding proper maintenance of stock registers, log books, e-payments, purchase orders, tenders, excess booking of lorry loads, contract conditions, proper record maintenances, preparation of realistic estimates, proper payment terms, material management etc by the Neyveli Lignite Corporation management.

(vi) Similarly, CIL Vigilance issued various circulars regarding limiting the value of gift items, hiring of vehicles, booking of coal under e-auction, review of Integrity Pact etc.

(vii) Guidelines were issued from time to time in different coal companies to bring in

more transparency and to bring down the areas of discretion or patronage.

15.4 SURVEILLANCE AND DETEC-TION

15.4.1 All Public Sector Undertakings under the administrative control of Ministry of Coal have identified and prepared the Agreed List of suspected officers for the year 2010-11 in consultation with the Central Bureau of Investigation.

15.4.2 During the year 2010-11, 13 cases were carried over as opening balance for investigation and 24 nos. of new regular investigation cases were taken up for verification of alleged irregularities in CCL. Action in respect of 25 investigation cases has been completed.

15.4.3 In ECL, 10 cases were taken up for investigation during the year, investigation in 10 cases were completed including the carried over cases. 15 surprise checks were carried out, of which 11 were taken up for investigation and finally 3 cases were converted into disciplinary proceedings. 548 employees were transferred from the sensitive posts.

15.4.4 In NCL, 63 cases were taken for investigation and 61 cases were completed. Further,13 surprise checks were carried out.

15.4.5 In MCL, 15 new cases were taken up for investigation during the year. During the period investigation in 11 cases was completed and 12 surprise checks were also carried out.

15.4.6 In SECL, 66 cases were taken up for investigation and 33 surprise checks were carried out during the year.


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Vigilance Ref No

Subject Matter of the case

Details of Recovery Amount Recovered

INF-09/08 Irregularities in payment of HRA at Kolkata Sales Office

In a vigilance case (INF-09/08) regarding Irregularities in payment of HRA at Kolkata Sales Office recovery of ` 3402000 was shown in 2008. As per latest report received in this respect total recovery in this case stands at 3606076.32 leaving balance of `463192.91. Recovery of `204076.32 (3606076.32 – 3402000.00) is shown in the reports for Jan 2010.

Rs.204076.32

15.4.7 Five surprise checks and four CTE type inspections were conducted in the various Regional Institutes of CMPDI.

15.4.8 In WCL, 22 cases were taken up for investigation, out of which 17 cases were completed. Further, 14 surprise checks were conducted.

15.4.9 In BCCL, 30 cases were taken up for investigation, out of which 19 cases were completed. Further, 07 regular cases were registered by the CBI in BCCL during 2010-11. As many as 62 employees were transferred from the sensitive posts and 22 surprise checks were also conducted.

15.4.10 In NLC, 334 cases were taken up for investigation, out of which 174 cases were completed. Further, 105 surprise checks were carried out, out of which in 83, cases action has been initiated.

15.5 PUNITIVE ACTION The data regarding position of cases

taken up for investigation, departmental inquiry, cases in which penalty was imposed, number of officials placed

under suspension, number of regular cases registered by the Central Bureau of Investigation in the coal companies and the Coal Mines Provident Fund Organization (CMPFO) is given below:-

Total cases taken up for investigation 633Total cases of Departmental Inquiry 123Total no. of Regular cases registered by CBI

20

Total no of officials placed under Suspension

20

Total no of cases in which major penalty was imposed

63

Total no of cases in which minor penalty was imposed

52

15.6 IMPORTANT ACHIEVEMENTS Besides what has been indicated in the

system improvements undertaken in the foregoing, an amount of ` 2, 04,076.32 was made in Jan. 2010 as per details given below:-

15.6.1 Recovery made from Vigilance Activities in 2010 is as under :-


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15.6.2 Monetary gain to Company due to vigilance activities in 2010

(1) Computerization of the entire process of e-auction by way of booking optimum quantity from a point at highest price, has resulted in overall increase of 9.66% (on the %age increase over notified price) when compared to the increase in 2010-11 (April, 10 to Jan.11) over the corresponding period of 2009-10 and on actual dispatch basis, there has been an increase of sales realization of around ` 5 crore on this count.

(2) Due to concerted and constant efforts of Vigilance Department in the matter of wagon loading, the under-loading charges as penalty being paid to Railways has come down from Rs.882.31 lakhs (Rs.7.51 per tonne) during the period April, 2009 to December, 2009 to Rs.460.73 lakhs (Rs.3.67/tonne) during the period April, 2010 to December, 2010, a net gain of Rs.421.58 lakhs.

Office automation of Vigilance Department, ECL To introduce office automation in Vigilance Department the proposal of introduction of standard Vigilance software was administratively approved by CMD and formal order was issued on 7.1.2010. Software with necessary hardware was supplied

on 30.6.10 and the Software was inaugurated by Director (T) in presence of Director (P) and all HoDs of ECL HQ on the inauguration day of Vigilance Awareness Period on 25.10.10. The software is now under implementation. This soft ware is having facility of linking with CVC, CIL and MOC so that they can access the IVIS of ECL to monitor the cases referred by them. Trial run of the same is in progress.

15.6.3 On-line Registration of Complaints

For the first time in MCL, a new system for On-line Registration of Complaints has been implemented. Now the complainants can download the complaint format from MCL’s website and can send their complaints in the prescribed format through e-mail to CVO, MCL.

15.6.4 Details of Sanction of Fund to NGOs

Details of Sanction of Fund to NGOs since January 2009 has been made available on MCL’s website and the concerned department has been advised to update the status on regular basis.

15.6.5 E- Tendering with reverse bidding - In compliance to the instruction of CVC regarding leveraging of Technology to curb corruption, e-tendering with reverse bidding has been introduced in CCL with effect from April’2010. Central Coalfields Limited is the only subsidiary of Coal India Limited which has adopted


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reverse bidding through e-tendering for all transportation contracts for the first time. Till date around 43 numbers of NIT has been floated/ invited through e-tendering through reverse bidding systems relating to transportation work.

15.6.6 E-Procurement – In compliance to the instruction of CVC regarding leveraging of Technology to curb corruption, e-procurement has been introduced in CCL w.e.f April’2010. Twelve cases of procurement have been taken up by e-procurement mode upto Nov.’10, using the portal of Service Provider for e-procurement in order to make award of procurement/ service contracts more transparent.

E-Payment - After rigorous follow-up and interaction of CCL Vigilance, e-payment has been introduced and fully implemented at CCL, HQ & Areas of CCL. Approximately 95.69% payment have been made through e-payment mode in the CCL HQ as well as Areas.

Integrity Pact – CCL has signed a MOU with Transparency International India in order to implement the Integrity Pact programme in CCL. It has been adopted in all such tenders which require the approval of CMD / Board or Directors of CCL. Till Dec.’2010, 200 Nos(approx) of NITs have been floated under the IP Programme since adoption of IP Programme in CCL.

Extent of IT usage and the e-governance - Most of the NITs, Tender Documents, CIL Purchase & Contract Management Manuals, Certified Standing Orders, CDA

Rules, Coal Mines regulation 1957, RTI Act 2005 and other important notifications & information have been made available on CCL web site in compliance to the directives of CVC. Apart from above, following other information have also been uploaded on CCL web-site:-

l Details of bill status of CCL, HQ.l Information regarding coal

dispatch.l List of Coal customers.l Information/ guidelines regarding

e-auction, Forward e-auction & Modified Forward e-auction.

l Delegation of Power in respect of Board Level executives, Area CGM/GM and different HODs/executives of CCL.

l Global Seniority of executives.l Details of Appellate Authority &

PIO/ APIO.l Company residential quarter

occupancy status.l Information/ notices regarding

employment.l CCL Annual Report for year

2006-07, 2007-08 & 2008-09.l Details of Safety Policy and status

of the Company.l Details of daily production report.l Vendor wise coal lifting details

and refund details.l Leave Rules.l Category wise manpower of CCL.l Grievance redressal system.l CVC circulars.l Inventory of Critical Items and

non-moving items in various stores along with LPP.


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l List of DGMS approved items.l List of Centralised items.

Publication of Compendium of Circulars by Vigilance Department - A notable achievement in preventive vigilance was the publication of a “Compendium of Circulars” by Vigilance Department during Vigilance Awareness Week 2010. This compendium comprises of CVC Circulars / guidelines, Internal Circulars and different Case Studies. A copy of the compendium has been made available to all the executives of the CCL as well as the same has been uploaded in the CCL web-site.

Structured Meeting of CVO with CEO - In compliance to the instruction of CVC, Structured Meeting of CVO with CEO is being held already. Four structured Meetings were organized during the period 1.1.2010 to 31.12.2010 and various important issues like E-Tendering, E-Procurement, E-Payment, Linking of all the Regional Stores with Central Stores and CCL, HQ., Preparation and adoption of E&M Manual, Uploading of information on CCL web-site and Establishing Quality Control Cell of Civil Engineering Deptt. were deliberated and prompt action undertaken.

System improvement in cases of civil work for repairing/construction of road

The following steps has been suggested for system improvement in cases of civil work for repairing/construction of road.

(i) The eligibility criteria in the NIT for Civil Work should indicate the requirement of experience of tenderer in the particular field for which the

NIT is issued.(ii) Inclusion of the official who prepared

the NIT/estimate, as a Tender Committee member, should be avoided.

(iii) The estimate of work for “repairing/construction of road” should indicate the minimum required strength of stone as per different sizes and the necessary properties of bitumen to be used.

(iv) As regards Civil repair/construction jobs, Quality Assurance Check as per Civil Engg. Manual of CIL should be carried out by Civil Engg. Dept of respective Area at different stages of execution of work and one copy of each Check should be kept in the concerned processing file for each repair work.

(v) Comparative statement of the offers, in respect of NIT for Civil Repair/Construction jobs, should clearly indicate the details of the jobs considered as work experience along with the value.

Important decision of Central Information Commission on the issue of disclosure of movement/tour details and T.A. bills of the officers/officials working in the Vigilance Department.

Under Secretary and nodal CPIO of CVC has issued a circular No. 26/07/010 dt. 15.07.10 on the subject of Disclosure of movement/tour details of the officers/officials working in the Vigilance Department of Government organisations.


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Central Information Commission’s decision dt. 16.09.2009 in case No. CIC/AT/A/2009/000100 in the case of CVO, CIL and DGM(Vig), CIL Vs. Shri M.N. Ghosh. the issue of disclosure of movement/tour details and T.A. bills of the officers/officials working in the Vigilance Department of the Govt. organizations has been considered/debated by the Central Information Commission.

(1) Central Information Commission in its decision has observed that :

“ I agree with the review–petitioners, given the specific circumstances and conditions surrounding the set of information now requested by the appellant, viz. tour details, vehicle logbooks, purpose of visits, overtime payments, etc. no public interest is served by their disclosure. On the contrary there is a distinct possibility that disclosure of this information will compromise the functioning of the Vigilance officers the review-petitioners and not only expose them to physical risks and intimidations, but impair their ability to carry-out their sensitive assignments. Certain level of protection needs to be given to such officers even in respect of disclosure of ordinary looking information for what is seemingly ordinary assumes the characteristics of the extraordinary in specific circumstances and conditions, which according to me, are present in this case”.

“As has been explained by the review-

petitioners, in the circumstances and the atmosphere in which they work and the specificity of their sensitive assignment, the requested information had the potentiality of endangering the officers life and their physical safety, apart from leading to identification of the source of information or assistance given in confidence for discharge of their law- enforcement functions as Vigilance Officers.”

(2) The Central Information Commission had, on the basis of above observations decided that movement/tour details and T.A. bills of the officers/officials working in the vigilance departments of the Govt. Organization should not be disclosed, keeping in view the provisions contained under Section 8(1)(g) of the RTI Act.

(3) Under Secretary and nodal CPIO has communicated to CVOs vide circular No. 26/07/010 dt. 15.07.10 to bring above quoted decision to notice of all the CPIOs /Appellate Authorities of their organization, who may consider the Central Information Commission’s decision, while deciding about the RTI Applications seeking tour/movement details of the officers/officials working in the Vigilance Organisations.

The complete decision of the Central Information Commission in the Case No. CIC/AT/A/2009/000100 is available in its website, www.cic.gov.in.


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(4) Regarding Use of Office Order as a rationale to pave the way for disbursement of TA/DA/Medical bills of those who are not covered in the Office Order

Letter No.CAL/RSO/RSM/249 dated 28.10.09 revealed that Regional Sales Office(WB), CIL had in its Pay Roll, 108 employees at that point of time including six executives. Some of them were posted in CIL (HQ), some of them were posted at CIL Mktg. Divn., and the rest were directly under the administrative control of RSO (WB) and placed at Regional Sales Office (WB). Payment of salary for all the 108 employees under the roll of RSO (WB), was disbursed by Regional Sales Office (WB), CIL. However TA/DA/Medical etc, in respect of the employees of RSO (WB) posted at Mktg. Divn, CIL, are disbursed by the pay office of Mktg. Divn. For others including those who are posted at CIL (HQ), such allowances are disbursed by pay office of Regional Sales Office (WB). Regional Sales Manager is the Controlling Authority/HOD of RSO (WB) Based on the above information copy of the competent approval/Office Order, authorizing disbursement of TA/DA/Medical etc from pay office of Mktg. Divn., CIL, in respect of the employees of RSO (WB), CIL, posted at Mktg. Divn., CIL, was sought vide this office letter No. CIL/VIG/VD-194/363 dated 07.08. 10.

It was mentioned in the Office Order dated 13.07.95 forwarded by letter No. CIL/RSO/(WB cell)/404 dated 30.08.10 that miscellaneous payments (Tour advance/TA, DA/any other miscellaneous payments) pertaining to 24 non-executives, who were transferred from RSO, WB cell to Marketing division, CIL, would be made from Marketing Division, CIL and hence the said Office Order dated 13.07.95, which was specific to only 24 non-executives. It appears that the said Office Order was used as a rationale to pave the way for disbursement of TA/DA/Medical bills of two executives from Marketing division, CIL.

The above aberration has been communicated to Director(Marketing), CIL vide this office letter no. CIL/VIG/VD-194/833 dated 13.12.10 for scrutiny from administrative viewpoint. Director(Marketing), CIL has been requested to initiate necessary system improvement measures and intimate this office about the action/initiative taken.

5. System improvement measures regarding global tenders for procurement.

Upon going through the Investigation in respect of the alleged irregularity relating to global tender for procurement of Self Rescuer by CCL, Central Vigilance Commission have advised the following System Improvement Measures:-

(1) Authenticity of collaboration documents submitted by a firm with a foreign partner is to be ascertained and legal


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opinion taken to establish the authenticity before placing any order on a firm having foreign collaboration.

(2) Confirmation in writing regarding authenticity of copies of supply orders enclosed by the firm have to be obtained from the purchaser for ascertaining the price reasonableness and obtaining the same over telephone will not suffice.

(3) The format of integrity pact should invariably be available in all the tender notices issued by CIL and its subsidiary companies.

(4) The Tender Committee members should sign the minutes of the tender proceedings mentioning their date of signatures also.

(5) Information published by the manufacturers in websites cannot be out right set aside, without seeking any clarification from the party concerned as these claims are made by the manufacturers in public domain and cannot be treated as unauthentic. In case of difference of parameters submitted by the party in writing to that of the information posted by the manufactures on web. sites, clarification should be sought to ascertain the submission made by the manufacturers. Also, adequate care should be taken while drafting the NITs as in the

instant case the term ‘shelf life’ had been stated as ‘self life’ in the NIT.

The above have been communicated to Dir.(Tech.), CIL vide no. CIL/VIG/ VD No.-550/50(CVC)/882 dated 22.12.10. for action.Updated Reports of Vigilance Status:-Copy of a circular issued in this connection vide no. CIL/VIG/05250. Vig. St/880 dated 22.12.10 is reproduced here under:In terms of Office Memorandum no. CIL/C-5 (A)/(ii)/50972(Pt.)/1260 dated 02.11.1992 of GM (P), CIL, the vigilance status report issued by Vigilance Division of CIL and the Subsidiary Companies in respect of executives remain in force for six months uniformly from the date of issue unless otherwise reported against in the meanwhile depending upon developments subsequent to the date of issue of the last status report. However, non-communication of any subsequent change in the vigilance status within the said period of six months may cause deprival / benefit to the concerned officer(s) particularly in so far as the matter related to promotion is concerned. It is as such of paramount importance that any change in the vigilance status of an official within six months of furnishing the same, must be communicated forthwith to Personnel Division, CIL for taking the same into consideration while dealing with relevant matters.In this connection a reference is also drawn to this office communication no. CIL/VIG/CCL/VD-55 (CH)/SNB/357 dated


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23.09.2009 addressed to D (P&IR), CIL with copies to CMDs of Subsidiary Companies conveying approval of Chairman, CIL that copy of the memoranda issued under Rule 29 or 31 of Coal India Executives CDA Rules, 1978 (as amended upto April, 2000) by Disciplinary Authorities of Subsidiary Companies of CIL are to be marked to Personnel Division, CIL amongst others for preparing data bank and the data bank may be referred before processing cases of promotion to ensure a foolproof system.Apart from referring to the data bank in respect of memoranda issued, Personnel Division, CIL may specifically ensure, before issuing promotion orders, that the latest status is obtained particularly in respect of such officer(s) against whom disciplinary cases have been shown as pending in the vigilance status furnished by Vigilance Division of CIL and the Subsidiary Companies. It may also be noted that the validity of six months should be reckoned from the initial date of furnishing the vigilance status by Vigilance Division of CIL and the Subsidiary Companies irrespective of communication of any subsequent changes / modifications thereof within the validity period.Verification of end use of coal supplied to state of NagalandVerification report sent to MOC vide no. CIL/VIG/NEC/VD_29(M)/298 dated 26.07.10 in respect of alleged irregularities in sale of coal meant for consumers of small scale sector in Nagaland contains proposal for system improvement for verification of genuine end use of coal supplies to the state of Nagaland by NEC through collection of

information from the state in similar way as urged by Chairman, CIL through his letter dated 02.07.10 to CMDs of subsidiaries.Exploring possibility of exempting CMD, CIL from personal appearance before CBI Trial Court as Prosecution WitnessThe matter regarding exempting CMD, CIL from personal appearance before CBI Trial Court as Prosecution Witness and Prosecution Sanctioning Authority under PC Act 1988 was taken up with CBI. An extract from the communication made to SP, CBI/ACB, Jabalpur vide letter No. CIL/VIG/VD-57(CBI)/322 dated 15.07.09 is re-produced hereunder:-Quote :……………. CMD, CIL being the Appointing Authority of executive grade employees in CIL and its Subsidiary Companies (totaling a very large number) has to issue a considerable no. of prosecution sanctions against such employees against whom criminal culpability vis-à-vis PC Act prima-facie appear in CBI’s report. CMD, CIL being head of the organization remains awfully occupied with number of meetings with the Central and State Government authorities, parliamentary committees, foreign trades and similar other assignments within and outside the country. It, therefore, becomes practically difficult for him to appear in person before the trial court as a PW in all such cases where prosecution sanction was accorded by him.It may be appreciated that the requirement of personal appearance of the Prosecution Sanctioning Authority in the trial court may


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not be necessary if the application of mind of the Sanctioning Authority, satisfying himself on the grounds warranting prosecution of the employees under his control is visible and convincing from the prosecution sanction order. At best, the authenticity of the prosecution sanction order may be required to be established, which can be met by identification of the signature of Sanctioning Authority by the dealing official of the matter in CIL before the Hon’ble trial court. In view of the foregoing, possibility may be explored so that CMD is exempted from personal appearance before the trial court as a PW as the prosecution sanction order issued by him invariably covers the grounds and reasonableness warranting him to issue the Prosecution Sanction Order under Sec. 19(1)(c) of PC Act, 1988.Unquote : Copy of the above mentioned letter dated 15.07.09 was also endorsed to SP, CBI, ACB, Nagpur/ Raipur/ Bhubaneswar/Bhopal/Kolkata/Assam with similar request. Subsequently, JD/CBI/Patna Zone, while requesting for sanction order for prosecution has agreed to the following which is extracted as belowQuote :case the sanctioning authority is very sr. officer, name, designation, full official and residential address and telephone/fax address of one competent and relevant officer/official who will be able to prove the sanction order for prosecution in the court of law by proving the signature of the sanctioning authority and also the application of mind by the sanctioning authority may be provided.

Unquote : Accordingly, while forwarding the Prosecution Sanctions to JD/CBI/Patna given by CMD ,CIL, name of the relevant official of Vigilance Division who would prove the signature of the Sanctioning Authority in the court of law, if required, along with his office/residential address, telephone numbers, etc. are indicated. This is also being followed when prosecution sanctions given by CMD/CIL are forwarded to all other zones of CBI.

15.7 Issue relating to appearance of award of warning/caution to the charged officers in the vigilance status furnished to MOC.

The above issue was raised by CVO, CIL during interactive session among CVC, MOC, CIL & Subsidiary Companies held in July’08 at IICM, Ranchi. In response the Vigilance Commissioner, CVC opined that warning or caution issued after conclusion of disciplinary proceedings is not to be considered as ‘Censure’ and should not cloud vigilance status of the concerned employee and affect his career growth.

Thereupon the matter was discussed with MOC and MOC has revised the format as per which vigilance status is required to be furnished to MOC for selection to Board level posts. Acceding to the new format, ‘penalty imposed, if any during the last 10 years’ is to be furnished and’ warning/caution’ being not categorized as punishment under CDA Rules are not required to be shown against the said head. A clarification in this regard has also been issued vide No. CIL/VIG/VD-1854(M)/921 dated 31.12.10 addressed to CVO, CCL with copies to CVOs of other Subsidiary Companies.


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Chapter-16

Welfare of Scheduled Castes and Scheduled Tribes andPersons with Disabillity

16.1 Coal India Limited

16.1.1 Reservation Policy

The reservation policy is being implemented

Apart from the above there is a directive on reservation in recruitment on Group C & D posts where state-wise reservation norms are being

State Company % age of SC % age of ST % age of OBCJharkhand BCCL 12 26 12Jharkhand CCL 12 26 12Jharkhand CMPDIL 12 26 12West Bengal ECL 23 5 22West Bengal CIL,Kol. 23 5 22Orissa MCL 16 22 12Madhya pradesh NCL 15 20 15Chattisgarh SECL 12 32 6Maharastra WCL 10 9 27Assam NEC 7 12 27

16.1.2 Group-wise manpower as well as representation of SC/ST/OBC with percentage as on 31.12.2010 (Provisional) in CIL is given below

(Provisional)

Group Total Strength SC % ST % OBC %A 14142 7.37 2.38 7.47B 21102 10.22 5.82 13.25C 238286 22.34 11.60 18.23

in recruitment and promotion of Scheduled Castes and Scheduled Tribes as per the Presidential Directives.

Direct Recruitment PromotionFor Group-A & B Posts SC ST OBC For Groups

A,B,C & DSC ST

All India basis by means of open Basis competitive test (written)

15% 7 ½% 27% All India 15% 7 ½%

maintained. Subsidiary-wise/Company-wise reservation percentage is appended below:


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D (Excluding Sweeper)

109084 19.88 14.48 17.90

D (Sweeper) 3916 96.10 0.94 0.02TOTAL 386530 21.18 11.65 17.29

16.1.3 Welfare Measures

Mining of coal has profound impact on the communities living in the areas where the mines are established. The obvious impact of the introduction of any industrial activities in such areas is change in the traditional lifestyle of the original inhabitants and indigenous communities and also change in the socio-economic profile of the area. In the above context, Coal India strongly believes that the people living in mining areas are an important stakeholder in the process of mine development and for sustainable development they have to be given share of the benefits of development of the mining projects.

In view of the above as a part of Corporate Social Responsibility Coal India and its Subsidiary companies are undertaking different welfare activities, in and around the coalfield areas for the benefit of Scheduled Castes(SC) and Scheduled Tribes(ST).

The following programme/schemes have been undertaken for benefiting SCs & STs in the coal bearing areas:-_

(a) Creation of Community assets (Infrastructure) like provision for Drinking water, construction of School buildings, Check dams, Village roads, Link roads and Culverts, Dispensaries and Health center, Community Centre, Market place etc.

(b) Awareness programme and Community activities like Health camp, Medical aids,Family welfare camps, Aids awareness programme, Immunization camps, Sports & Cultural activities, Plantation etc.

16.1.4 Implementation of persons with Disability Act, 1995

Statement showing the representation of persons with disabilities in CIL as on 31.03.2010.

(Provisional)Company Number of Employees

Total VH HH OHECL 82090 21 25 72BCCL 68816 38 19 67CCL 52864 21 12 34WCL 59376 32 9 160SECL 78272 7 5 68MCL 21441 125 5 100


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NCL 16289 8 2 32NEC 2648 0 0 1CMPDI 3117 2 3 13DCC 589 0 0 0CIL (HQ) 1028 1 0 0Total CIL 386530 255 80 547

Details of appointments in Group C & D since 1996-97

Year No. of persons appointed

Number of posts filled under reservation quotaVH HH OH

1996-97 To 1.1.10 4344 2 1 13

VH = Visually Handicapped HH = Hearing Handicapped OB = Orthopedically Handicapped

16.2 Neyveli Lignite corporation

16.2.1 NLC is following the rule of reservation prescribed by the Government of India. All directives issued by Government of India in the matter of reservation in Recruitment & Promotion are being followed. The Cell is working under the guidance of an Officer at General Manager level to ensure due compliance of the orders on the Reservation Policy of SC / ST, Ex-Servicemen, Disabled persons and Minorities, issued by the Government of India from time to time. The Cell is also ensuring speedy disposal of various complaints and grievances of the employees belonging to the above

categories. One of the functions of the cell is to collect data pertaining to SC / ST, Ex-Servicemen, Disabled persons and Minorities and furnish the same to various authorities under the control of the administrative Ministry, Government of India. The objective of the cell is to enlighten the employees with regard to the safeguards that are provided by the Government of India in the matters of recruitment, promotions and other service matters and also to ensure the implementation of the Presidential Directives on Reservation Policy. The details relating to the percentage of reserved categories of employees as on 31st December 2010 are furnished below:

Group Applicable Percentage of Reservation

Manpower position Available Percentage

SC ST Total SC ST SC STA 15 7.5 3793 762 164 20.09 4.32B 16.66 7.5 363 92 12 25.34 3.31


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16.2.2 Scheduled Caste Sub-Plan for the Welfare of SCs /STs.

NLC has formulated and implemented Scheduled Caste Sub-Plan (formerly known as Special Component Plan) for the Welfare of Scheduled Caste and Scheduled Tribe Population from the year 2000, after framing the scheme based on the detailed guidelines on formulation, implementation and monitoring of SCP given by the planning commission and various communications received from Ministry of Coal and Ministry of Social Justice of Empowerment. There is no separate Tribal Sub Plan as the ST population is negligible in the peripheral area of NLC and hence SCSP is implemented for both SC & ST Population.

16.2.3 Implementation of Persons with Disabilities Act 1995

NLC is implementing various Schemes / Policy for the Socio – Economic development of Physically Challenged Persons. NLC has been patronizing Neyveli Health Promotion and Social Welfare Society (NHPSWS). The society is getting continuous financial and other forms of assistance / help from the Neyveli Lignite Corporation to meet the social welfare objectives of the society which extends benefits to disabled population in

Cuddalore, Villupuram and neighboring Districts of the Tamil Nadu.

16.2.4 Promotion

Promotion within Group ‘D’, from Group ‘D’ to ‘C’ and within Group ‘C’ NLC has been adopting Time Bound Promotion Scheme with the scope for 100% promotion and the promotions are based on Time Bound without linkage to vacancy, wherein, there is no element of selection.

16.2.5 Health & Welfare

The society takes care of the Education of Physically Challenged Persons like Hearing Impaired and Training in various handicraft works to earn their livelihood. Facilities for Yoga, Sports and Games are provided. The Society also provides training and job opportunities in various fields viz. flour grinding, cane weaving and bookbinding. At present five Centers are functioning under the Society.

NLC is implementing various Schemes/Policy for the Socio–Economic development of Physically Challenged Persons. NLC has been patronizing Neyveli Health Promotion and Social Welfare Society (NHPSWS). The society is receiving continuous financial and other forms of assistance / help from the Neyveli Lignite Corporation to meet the social welfare objectives of the society

C 19 1 11585 2448 120 21.13 1.04D Excl. Sweepers 19 1 2355 494 11 20.98 0.47

Sweepers 28 17 - 60.71 0.00Total 18124 3813 307 21.04 1.69


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Sneha Opportunity School for differently abled children at Neyveli

which extends benefits to disabled population in Cuddalore, Villupuram and neighboring Districts of the Tamil Nadu.

16.2.6 National Aids Control Organisation Relating to Aids

In order to prevent vertical transmission of HIV infection from mother to child and to minimize damage of HIV infection to the mother, a screening cum counseling center is being opened at maternity department in collaboration with the State Government. This service is being extended to all including those who come to hospital for anti natal services

from the surrounding villages. There is no way by which HIV could be tested unless individuals who feel they are at risk volunteer for screening. Both Neyveli Book Fair and Safety Week Celebration provide an opportunity for the general public to volunteer themselves for HIV screening.


16.3.1 Representation of SC / ST / BC Categories:

As regards SCCL, the total men on roll as on 31.12.2010 are 67,980.


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CASTE ON ROLL % shareSC 14801 21.77ST 3309 4.87BC 37,469 55.11 -BC-A 4722 6.95 -BC-B 14806 21.79 -BC-C 850 1.25 -BC-D 16582 24.39 -BC-E 509 0.75OTHERS 12401 18.25TOTAL 67980 100

16.3.2 Implementation of Persons with Disability Act, 1995

It is pertinent to mention that the Mines Act,1952 and Mines Rules, 1955 have prescribed certain minimum physical standards for a person to be employed in a mine and that the Colliery Medical Officer is cast with the responsibility to certify the medical fitness or otherwise with reference to the standards fixed under the Act in view of the hazardous nature of work. Therefore it is obligatory on the part of the Mine Owners to employ physically fit persons only to work in the mines.

In view of the special circumstances existing in SCCL, the Govt. of Andhra Pradesh in exercise of powers conferred under statute has exempted SCCL from implementing of reservation to the Candidates with physical disabilities in direct recruitment under section 33 of the Persons with Disabilities (equal Opportunities Protection of Rights and Full Participation)Act 1995 (Central Act No.1 of 1996 ) vide letter No. 946 /

Pr/1(2)/2003-5 dated 30.05. 2003 of the Principal Secretary to Govt., Energy Dept.., Govt. of Andhra Pradesh, Hyderabad and G.O.Rt.No./317 dtd.12.12.2005 of Special Chief Secretary to Govt. Energy (PRI) Dept., Govt. of Andhra Pradesh, Hyderabad.

16.3.3 Special Development Programme

As part of Corporate Social Responsibility, Sports & Games are conducted for the physically and mentally challenged persons in all the Areas SCCL on 3rd December of every year i.e., International Disabled Day.

The following three special schools are being supported by Singareni Seva Samithi (SSS) by extending infrastructure, supplying machinery etc.

• Manochaitanya School,Godavarikhani (for Mentally retarded)

• ManovikasSchool,Mandamarri(forMentally retarded)

• SaiManotejaDeaf&DumbSchool,Manuguru


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Infrastructure and other facilities are being provided to the tribal community in and around SCCL :

1) Tribal Home at Manuguru 2) Vanavasi Kalyana Parishad at

Bellampalli3) Vanavasi Kalyana Parishad at

Kothagudem 4) R & R Centres in Bellamapli Area

16.3.4 The Presidential Order 1975 on direct recruitment:

As per the Presidential Order 1975, the information pertaining to SCCL in respect of direct recruitment is as follows.

• Non-executive cadre posts atentry level by direct recruitment, the first 20% of the vacancies will be filled with open category (i.e. Local and Non-local) basing on their merit and communal roster. The remaining 80% of

the vacancies will be filled with local candidates as per merit and communal roster points.

• Executive cadre posts at entrylevel by direct recruitment, the first 40% of the posts will be filled from combined merit list as open category (both Local and Non-local) and remaining 60% of posts by local candidates as per merit and communal roster points.

The above reservation for local candidates will not be applicable for the following posts:

(a) Executive cadre posts in Medical & Health discipline

(b) Executive cadre posts in Mining discipline

Once recruited, the candidates are liable for transfer to any other district / State wherever required by SCCL.


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Chapter-17

Welfare and Development and Empowerment of Women

17.1 The total strength of Ministry of Coal is 145 as on 31.01.2011, out of which 25 employees (i.e. about 17%) are women. Out of these, 10 are gazetted officers.

17.2 Coal India Limited

17.2.1 Coal India Limited provides employment to around 28356 women (31.12.2010). This constitutes about 7.34% of total manpower. The number of women executives is around 540 and skilled/

monthly rated women employees are 6066, the rest belong to unskilled/daily rated category. One of the reasons for low ratio of women as compared to men in Coal India is the nature of the profession itself. Coal mining by its intrinsic nature is an arduous and hazardous profession. Moreover there is a regulation preventing women employees from entering the underground mines. Most of the women executives are in administrative disciplines like personnel, finance, etc.


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17.2.2 Forum of Women in Public Sector (WIPS)

With the intention of pursuing the objectives of Directive Principle of State Policy, the Forum of Women in Public Sector (WIPS) was formed.

A forum of Women in Public Sector (WIPS) was established on 12th February 1990 under the aegis of Standing Conference of Public Enterprises (SCOPE). The idea of “WIPS” was conceived when the Bureau of Public Enterprises in collaboration with SCOPE organized a National Convention of women in Public Sector in October 1989, in New Delhi with a view to analyze the problems of women in the Indian context. At this convention, it was decided to create a national network, a support system that would help women employees to harness their full potential and to enhance their contribution in the national development process in general and public enterprises in particular.

This forum operates at a National level through its Central apex body at New Delhi and function through four regional centers at Mumbai, Chennai, Kolkata and New Delhi. Aims and objectives of this forum are :

• To promote growth anddevelopment of women in Public Sector.

• To assist thePublicUndertakingin organizing the full potential in women employees.

• To play a catalytic role inimproving the status of women in and around Public Undertakings.

With a view to have a well coordinated action at enterprise/regional units and an effective network with the regional chapters and Apex Body. WIPS Cells are set up in each enterprise headed by co-ordinators nominated by respective enterprise. The co-ordinator of each cell keeps liaison with the respective region and apprises them of the activities to mobilize public sector units to become members of the forum, as also to encourage lady employees of their units to create WIPS Cells. The forum celebrates WIPS Day every year in February by organizing a National Meet, which is attended by delegates from all over India, nominated by their respective companies.

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

Coal India Ltd and its subsidiary companies are extending full fledged support and patronage to the National Conference of Forum of WIPS held every year in February at predetermined


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locations by sponsorship of the event, nomination of maximum number of delegates and also by competing for the BEST ENTERPRISE award. As a matter of fact, in previous years SECL, ECL & BCCL have won the coveted award for outstanding women oriented/gender friendly activities. In recent years the WIPS cell has done commendable work in reaching out to the grass root level women employees by suggesting the in gainful redeployment, training and uplifting their morale by recognizing outstanding achievement.

17.2.3 Welfare Schemes for Women

The Mines Crèche Rules 1946 aim at providing healthy growth and welfare of children of women employees. There are provisions for special care and protection of children up to the age of six years. The Mines Act and the Mines Crèches Rules prescribe detailed norm of women employees, number of staff, well-ventilated rooms as per specification given, toilets, medical facilities and medical check-up of children, proper drinking water facilities and proper diet for children. Special emphasis has been given on cleanliness to safeguard the health of the children.

The provisions of Maternity Benefit Act and Equal Remuneration Act are being implemented benefiting the women employees of the Company.

17.2.4 Training

A major thrust of the CIL and its subsidiary companies is on the skill up-gradation of female employees. Female

employees are given training on jobs like

1. Shovel/Dumper/Excavation/Pay loader operation

2. Haulage/Fan/Pump operation3. Lathe machine/Moulder/Driller4. Switch Board Attendant5. Armature winding6. Security

17.2.5 Other Welfare Measures

(a) Female employees are also employed on other jobs, as para-medical staff, doctors, computer professionals, security personnel etc.

(b) CIL has established nurses training institutes where training is imparted to the trainee nurses to find opportunity in or around the industry.

(c) Mahila Mondals, Mahila Samity and other such forums are working in different units/establishments and coalfield areas to look after the Welfare of female employees and female spouses/female dependents. They organise symposiums, seminars, training programme and cultural activities from time to time for women.

(d) Women employees take active part in the Sports events organised by CIL. Ms.Sumita Laha, has won laurels for the country in power lifting in various international meets.

(e) As per the Wage Agreement, female dependant of the employee who dies while in service is provided with employment or


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monetary compensation.(f) Based on the guidelines of National

Commission for Women and Government of India a Women’s Cell has been constituted to look into the complaints of women employees against discrimination and sexual harassment.

(g) In accordance with the judgment by the Hon’ble Supreme Court in the case of Vishakha and others – vs- State of Rajasthan, CIL and its subsidiaries have made amendment in the service rules/standing orders of employees.

17.3 Neyveli Lignite Corporation Ltd.

17.3.1 Women Employees on Rolls

Total number of women employees on rolls as on 31.12.10 in NLC is 1347 including 292 executives.

17.3.2 Action on Guidelines By National Commission For Women

A Committee consisting of senior women executives’ including a Doctor was formed based to protect women employees from sexual harassment in work place. For the benefit of the working women employees “Anbalaya” a well-equipped Creche with trained personnel is in operation.

17.3.3 Training & Development Activities for Women Employees

The NLC chapter of WIP’s has organized and conducted several sports, cultural, group discussions for the benefit of women employees. Women employees’ grievances are redressed by way of skilful

counseling.

17.3.4 Scheme Death Relief Fund

Out of this scheme 32 dependent of deceased employees got the financial assistance for ` 1.165 Crs

17.3.5 Family Relief

The family relief is paid to around 49 dependants every year, and the financial out go on account of the scheme works out to about Rs.1.35 lakhs per month.


17.4.1 Women Employees Strength

As on 31.12.2010, the strength of women employees is 2417. Total employees on roll in SCCL is 67,980.

Areas of SCCL 2003Corporate & Hyderabad Offices

414

Total 2417 Executive cadre 84Non-Executive 2333Total 2417

17.4.2 Welfare Scheme

(a) The provisions of Maternity Benefit Act are being implemented benefiting the Women employees of the Company. Under this Act, Women employees are sanctioned Maternity Benefit Leave.

(b) In all the Areas, Women’s Cells have been constituted with the women employees for effective function and to


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redress problems of women employees relating to their employment in writing to the Convener of Women’s Cell concerned. The Convener of the Women’s Cell of the Area concerned conducts regular meetings with the Committee members for redressal of the grievances of the women employees.

Corporate Women’s Cell have been celebrating the International Day for Women on 8th March every year by conducting quiz, cultural programmes etc.

(c) In order to create awareness about the company as well as of the outside world among workmen and their families about savings habits, health & hygiene, literacy, children’s education, safety, post retirement planning etc, an association called “Singareni Employees Wives Association” (SEWA) has been constituted in all the Areas with the active participation of Wives of employees.

(d) Every year Quiz programmes and elocution competitions are conducted for women employees, spouses of employees and children of employees in each Area and mementos are presented on the occasion of International Day for Women.

17.4.3 Special Development Programmes

During 2010-11 (April’10 to Dec.’10) 546 family planning operations were conducted in SCCL Company hospitals.

SCCL has been providing educational facilities to the children of its employees.

The following educational institutions are being run by SCCL.

Degree College ( only girls) – 01 No.

Junior College (only girls) – 01 No.

Polytechnic College - 01 No.

High Schools & Upper primary Schools – 11 Nos.

Every year merit scholarships of ` 10,000/- per year per student are being sanctioned in the event of the children of SCCL employees getting admission in Engineering and Medical courses with a rank below 2000 in the EAMCET / IIT/AIEEE(NIT) etc..

Financial assistance @ `4000/- to 12000/- are being sanctioned to the children of SCCL employees who qualify for UPSC main exams.

Vocational training is being imparted to the children of SCCL employees and ex-employees by Singareni Seva Samithi (SSS) to make them self employable.

At SRKM College of Nursing, Mancherial, 50% of management quota seats are reserved for admission in B.Sc. Nursing Course for the children of SCCL employees from the year 2008-09. SCCL has launched a massive literacy programme for its illiterate workmen and their spouses. Sports and games are being conducted for women employees and wives of employees during the annual day celebrations i.e., 23rd December every year in all the Areas of SCCL.


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Chapter-18

Audit Para

Present status of the Audit Paras(Commercial + Civil) for inclusion in Annual Report 2010-2011 (As on 07.03.2011)

Sl.No Para No./Report No.

Brief Subject Present status

1 Para No. 3.1.1/Report No. CA.9 of 2009-10

Bharat Coking Coal Limited-Deshaling Plant commissioned at a cost of Rs.6.54 crore for feeding dirt free coal to the main washers was non operational. Batac Jig, HM Bath and Process Control System malfunction caused migration of washed coal to middling. This impaired the improvement of quality of middling to qualify the same for sell as Power Clean Coal (PCC). The Company sustained a loss of `51.82 crore during 2007-08 to 2008-09. Renovation jobs of these portions of plants of Bhojudih Coal Washery were not completed even after a lapse of four years.

ATR submitted to IFD for vetting on 09/02/2011.

2 3.2.1/Report No. CA.9 of 2009-10

Central Coalfields Limited-Failure of the Company to fix correctly the washed coal price of Piparwal Coal Preparation Plant of Central Coalfields Limited resulted in a loss of revenue to the tune of ` 67.83 crore on value of washed coal sold to power houses other than NTPC Limited during the period from 2004-05 to 2008-09.

ATN has been sent to the Office of the C&AG for vetting on 08.2.2011

3 3.3.1/Report No. CA.9 of 2009-10

Coal India Limited-Coal India Limited and its subsidiaries deposited the employers share of ` 17.26 crore towards provident fund contribution on leave encashment with Coal Mines Provident Fund Authority, though the same was not permissible as per extent law. Practice was not stopped despite specific Order of Supreme Court of India in this regard in another Civil Case.

Pending

4 3.4.1/Report No. CA.9 of 2009-10

Eastern Coalfields Limited-Coal produced at Chitra mines of Eastern Coalfields Limited was mainly sold to Thermal Power Stations of NT PC Limited. In order to ensure supply of coal in required sizes and quality, the stones/shales and extraneous material contained in the coal were picked out before crushing the same below 200 mm size. These activities were outsourced during 2004-05 to 2007-08. The Company adopted derived method(based on volumetric measurement) to check en-route shortage. This method involved human error as it gave approximate figures. Despite the fact that the local Company staff regularly reported pilferage of coal en-route between dump yard and railway siding to the local police, cost of negligible shortage of 542.19 tonne , i.e., ` 0.11 crore was recovered from contractors’ bills. The Thermal Power Stations deducted ` 65.17 crore for grade slippage of coal(supply of stones/shales etc.) The contractors were not made responsible for the amount deducted by the customers for grade slippage as well for supply of oversized stone.

Sent to Audit for vetting on 01.02.2011.


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5 3.5.1/Report No. CA.9 of 2009-10

Mahanadi Coalfields Limited-A purchase order for procurement of conveyor belts at a value of `.5.15 crore was finalized and issued to firm but the contract could not be finalized. The Company had to purchase the same material from alternate source at an additional cost of `3.50 crore but it could not enforce the risk purchase clause in the absence of a valid contract.

Draft ATN has already been sent to IFD for vetting.

6 3.6.1/Report No. CA.9 of 2009-10

Neyveli Lignite Corporation Limited-Neyveli Lignite Corporation was deprived of additional revenue of `8.14 crore due to non-adherence to price clause in sale of lignite It also extended undue benefit to a private party to the extent of ` 141.46 crore due to non-recovery of taxes on income from supply of lignite.-NLC


7 3.6.2/ Neyveli Lignite Corporation Limited-Section 292(3) of the Indian Companies Act, 1956 stipulates that delegation of powers to any committee of the company to invest surplus funds should specify the total amount up to which the funds may be invested by such committee.Neyveli Lignite Corporation Limited while delegating powers to the Committee of General managers to recommend investment of surplus funds in commercial bank(s) up to one-year did not specify the total amount up to which the committee could invest, Tamil Nadu and Karnataka State Electricity Boards prematurely redeemed(March 2007) power bonds amounting to `1480.87 crore and the Committee, without apprising the Board of Directors of this unexpected receipt, invested(March 2007) , this money in short term deposit with four banks. On maturity these funds were re-invested in short term deposits in February, 2008 and in February 2009 without carrying out any commercial appreciation of the opportunities available for long term investments. Thus, the Company lost an opportunity to earn additional revenue of `89.17 crore on the funds received from the State Electricity Boards by investing the surplus funds in short term deposit.


8 3.7.1/Report No. CA.9 of 2009-10

Northern Coalfields Limited-Northern Coalfields Limited issued contracts for removal of overburden and paid service tax of `16.95 crore on the cost of explosive though no service in the form of blasting was provided by the contractor


Ann Rep 1011

Documents

Transcript of Ann Rep 1011