A STUDY ON SALES AND DISTRIBUTION OF COAL IN CENTRAL COALFIELD LIMITED (CCL), RANCHI

By

RAHUL GAURAV (Reg. No.:35080433)

UNDER THE GUIDANCE OF

MRS. K. VASANTHI KUMARI (Assistant Professor)

A PROJECT REPORT Submitted to the department of

MBA

SRM SCHOOL OF MANAGEMENT

In partial fulfillment of the requirements For the award of the degree

Of

MASTER OF BUSINESS ADMINISTRATION

In SRM SCHOOL OF MANAGEMENT

SRM UNIVERSITY KATTANKULATHUR, CHENNAI

MAY 2010

BONAFIDE CERTIFICATE

Certified that this project report titled “A STUDY ON SALES AND DISTRIBUTION OF

COAL IN CENTRAL COALFIELD LIMITED (CCL), RANCHI”

Is the bonafide work of Mr. RAHUL GAURAV (Reg.no.35080433)

who carried out the research under my supervision. Certified further, that to the best of my

knowledge the work reported here in does not form part any other project report or dissertation

on the basis of which a degree or a award was conferred on an earlier occasion on this or any

other candidate.

Mrs. K. VASANTHI KUMARI Dr. JAYASHREE SURESH (Assistant Professor) (Head of the Department)

ACKNOWLEDGEMENT

I owe everything in my life to other. A person single headed can achieve nothing. In my

attempt to do the project many people have graciously extended their guidance, advice and

criticism to improve my work.

I wish to express my heartiest thanks to our Dean Dr. Jayshree Suresh for providing infinite

facilities, and giving me an opportunity to does this project work successfully.

I express my sincere thanks to my project internal guide Mrs. K. Vasanthi Kumari for his

guidance and valuable suggestions, which made this project, a successful one. I express my

gratitude to CENTRAL COALFIELD LTD. (CCL), RANCHI for providing me the

opportunity to undertake this project in their esteemed organization.

My gratitude also extends to the staffs of the department whose words of encouragement kept the spirits high throughout the course of my project.

DECLARATION

We hereby declare that this project work entitled “SALES & DISTRIBUTION OF COAL IN

CENTRAL COALFIELD LTD.(CCL)” submitted at SRM School of Management studies is

partial fulfillment of the requirement for the degree of Master of Business Management is a

record of original work done by me for the department of business administration. It has not been

submitted to the award of any degree/fellowship or other similar title to any candidate of

university.

Place: - Chennai Signature of student

Date: - RAHUL GAURAV (Reg.no. 35080433)

CONTENTS

Sl. No.

TITLE NAME

Page No.

CHAPTER I 1.1 Introduction of the Study 2

1.2 Significance of the Study 3

1.3 Scope of the study 4

1.4 Objectives of the study 4

1.5 Limitation of the study 4

CHAPTER II 2.1 Company Profile 6-9

2.1 Marketing Mix 10-18

2.2 FSA (Distribution) 19-25

CHAPTER III 3.1 Research Methodology 27-30

3.2 Data analysis & interpretation 31-39

CHAPTER IV 4.1 Findings 41

4.2 Recommendations 42

CHAPTER V 5.1 Conclusion 44

Appendices 45-46

Bibliography 47

CHAPTER I

INTRODUCTION

1.1 INTRODUCTION OF STUDY

The study is focus on sales and distribution of coal.

SALES AND DISTRIBUTION

Sales and Distribution System is specifically developed for the company, which has high volume

of sales with wide distribution network. It can be a Pharmacy, Liquor, Consumer Electronics or

Export Companies.

This application keep track of all sales which happens either through depot, channel or through

any other mode, even it keep a track of all inventory of dealers or depot and respective other

details which are normally required by management for day to day reporting.

SALES

A sale is the pinnacle activity involved in selling products or services in return for money or

other compensation. It is an act of completion of a commercial activity.

A sale is completed by the seller, the owner of the goods. It starts with consent (or agreement) to

an acquisition or appropriation or request followed by the passing of title (property or ownership)

in the item.

DISTRIBUTION

Distribution (or place) is one of the four elements of marketing mix. An organization or set of

organizations (go-betweens) involved in the process of making a product or service available for

use or consumption by a consumer or business user.

1.2 SIGNIFICANCE OF STUDY This study has enabled me to understand the company policy, rules and regulation regarding sales and distribution. In my project I study the distribution policy of CCL. CCL follow various rule and regulation to provide coal to its customers. The various departments under CCL. For instance, In CCL there are mainly four departments such as

I. Personnel department,

II. Finance department,

III. project and planning department

IV. operation department

My training under was sales and marketing department which comes under operation department.

1.3 SCOPE OF THE STUDY

The scope of the study is confined to the detailed study of coal and about the organization & identifies the company’s position in the coal industry and to suggest means of improvements in the existing system.

This study helps us to understand the working culture of organization like Central Coalfield Limited.

1.4 OBJECTIVES OF THE STUDY Primary

The main objective of the study is to sales and distribution of coal in CCL, Ranchi.

Secondary

To understand the working culture of a company.

To understand the utilization of coal.

To know the method of distribution of coal to the customer.

To understand the organizational set of a company

1.5 LIMITATIONS OF STUDY

The study was for short period.

Study is conducted considering the prevailing conditions which may change in the future.

CHAPTER II

COMPANY PROFILE

2.1 COMPANY PROFILE

COAL INDIA LIMITED TYPE-PUBLIC SECTOR UNDERTAKING GOVERNMENT OWNED FOUNDED- 1975 HEADQUARTER- (KOLKATA,WEST BENGAL) INDUSTRY- COAL AND LIGNITE EMPLOYEES- 4.5 lacs, 2008 Coal India Limited (CIL) is a public sector undertaking in India. It is the largest coal mining

company in India and in the World. It is owned entirely by the Union Government, under the

administrative control of the Ministry of Coal. It is involved in coal mining and production

industry.

Coal India Limited was formed in 1975.Now it has 8 subsidiaries and one research centre.

1. Bharat Coking Coal Limited (BCCL), Dhanbad, Jharkhand

2. Central Coalfields Limited (CCL), Ranchi, Jharkhand

3. Western Coalfields Limited (WCL), Nagpur, Maharashtra

4. Eastern Coalfields Limited (ECL), Asansol

5. Mahanadi Coalfields Limited (MCL), Sambalpur, Orissa

6. South Eastern Coalfields Limited (SECL), Bilaspur

7. North Eastern Coalfields Limited (NECL), Guwahati

8. Northern Coalfields Limited, Singrauli (NCL,Singrauli)

R

1. Ce

RESEARCH

entral Mine P

CENTRE

Planning andd Design Insstitute Limiteed (CMPDILL), Ranchi

CENTRAL COALFIELD LIMITED (CCL)

HISTORICAL MARCH TO THE ORIGIN OF CCL

1925 FIRST NATIONALISATION OF COAL mining by Railway Board. 1944 Railway Collieries transferred to Coal Board Under Coal Commissioner.

1956 Formation of Public Sector Company - National Coal Development Corporation Ltd. with 11 State owned collieries, Production 3.11 M.T.

1959 First Washery of NCDC – Kargali 1972 Nationalization of Coking Coal Mines. 1973 Nationalization of Non-Coking Coal Mines

1975 CENTRAL COALFIELDS LIMITED reorganised in November under Coal India Limited -- Holding Company.

1986 Truncating of CCL, Formation of NCL (Singrauli) and MCL (Talc her). 2004 11 Areas, 65 Mines NOV 2007 It is awarded by “MINIRATNA STATUS”.

Nationalization

Coking coal is nationalized in 1972 and non-coking coal is nationalized in 1973.

There are two companies in India for Mining of coal:-

(1) CIL

(2) SCCL (Singarani Coal Consumer Ltd.), Andhra Pradesh

Presently CCL has

Number of Mines 63 Mines

(31Underground & 32 Opencast mines)

Washeries 7 Washeries 4 Medium Coking Coal Washeries

3 Non-Coking Coal Washeries

Workshop 1 Central Workshop 5 Regional Workshop (The Central W/S & 3 Regional W/S are ISO 9001)

Operating Coalfields 6 (East Bokaro, West Bokaro, North Karanpura ,South Karanpura, Ramgarh & Giridih)

ORGANISATIONAL SETUP OF CCL

The company is managed by Board of Director and is headed by chairman cum Managing

Director (CMD), assisted by group of staff officer looking after different department.

Chairman (Coal India Limited)

↓ Board of Director +CMD of all subsidiaries (CCL) ↓ ↓ ↓ ↓ ↓ Director Director Director Director (Personnel) (Finance) (Project & Planning) (Operation) ↓ GM (Sales & Marketing) ↓ Deputy Chief sales manager ↓ Sales Manager ↓ Deputy sales manager ↓ Senior sales officer ↓ Sales officer

2.2 MARKETING MIX

The marketing mix was first developed by McCarthy over 40 years ago. It was designed to

suggest that we have a balance mix of marketing in our marketing plan.

Elements of the marketing mix - the 4 Ps

Product

Defining the characteristics of our product or service to meet the customers' needs.

Price

Deciding on a pricing strategy. Even if we decide not to charge for a service, it is useful to

realize that this is still a pricing strategy. Identifying the total cost to the user (which is likely to

be higher than the charge we make) is a part of the price element.

Promotion

This includes advertising, personal selling (e.g. attending exhibitions), sales promotions (e.g.

special offers), and atmospherics (creating the right impression through the working

environment). Public Relations are included within Promotion by many marketing people

(though PR people tend to see it as a separate discipline).

Place

Looking at location (e.g. of a library) and where a service is.

PRODUCT PROFILE

Coal is an organic matter and is a product of sedimentary environment.

As geological processes apply pressure to dead biotic matter over time, under suitable conditions it is transformed successively into

• Peat, considered to be a precursor of coal, has industrial importance as a fuel in some regions, for example, Ireland and Finland.

• Lignite, also referred to as brown coal, is the lowest rank of coal and used almost exclusively as fuel for electric power generation. Jet is a compact form of lignite that is sometimes polished and has been used as an ornamental stone since the Iron Age.

• Sub-bituminous coal, whose properties range from those of lignite to those of bituminous coal are used primarily as fuel for steam-electric power generation. Additionally, it is an important source of light aromatic hydrocarbons for the chemical synthesis industry.

• Bituminous coal, dense mineral, black but sometimes dark brown, often with well-defined bands of bright and dull material, used primarily as fuel in steam-electric power generation, with substantial quantities also used for heat and power applications in manufacturing and to make coke.

• Anthracite, the highest rank; a harder, glossy, black coal used primarily for residential and commercial space heating. It may be divided further into metamorphically altered bituminous coal and petrified oil, as from the deposits in Pennsylvania.

On the basis of caking property:-

1. Coking coal

2. Non-coking coal

On the basis of size:-

1. ROM (Run Over Mines)

2. Steam (more than 250 mm)

3. Slack (less than 250 mm)

On the basis of basification:-

1. Washed coal:- Ash percentage 24-35%

2. Washer coal power:- Ash percentage 15-20%

3. Rejects:- (stone +coal)

4. Slurry :- Fine particles of coal

GRADES OF COAL:-

1. Coking coal

a) Steal grade 1 (less than 15%)

b) Steal grade 2 (15-18%)

c) Washery grade I (18-21%)

d) Washery grade II (21-24%)

e) Washery grade III (24-28%)

f) Washery grade IV (28-35%)

2. Non-coking coal

GRADE SPECIFICATION

A. UHV Exceeding 6200 kilo calories/kg

B. UHV between 6200-5600 kilo calories/kg

C. UHV between 5600-4940 kilo calories/kg

D. UHV between 4940-4200 kilo calories/kg

E. UHV between 4200-3360 kilo calories/kg

F. UHV between 3360-2400 kilo calories/kg

G. UHV between 2400-1300 kilo calories/kg

Coal availability in India

PEOPLE (CUSTOMER)

TYPES OF CUSTOMER:-

1. Existing Customer

2. New Customer

Following are the list of customer:-

1. Steel industry

2. Power houses

3. Fertilizer

4. Sponge iron

5. CPP (Captive power plant)

6. Brick making

7. Chemicals

8. Paper

9. Textile

10. CPSU (central/public sector unit)

11. State agency

12. Others

PLACE (COAL INDIA LIMITED)

1. Jharkhand

2. Orissa

3. Madhypradesh

4. Chhattisgarh

5. Assam

6. Maharashtra

7. West Bengal

8. Utter Pradesh

PLACES OF DISPATCH (SUPPLY) FROM CCL:-

1. Delhi

2. Jharkhand

3. Bihar

4. Orissa

5. West Bengal

6. Punjab

7. Haryana

8. Utter Pradesh

9. Jammu Kashmir

MODE OF TRANSPORTATION:-

1. Rail

2. Road

3. Belt

4. Trolley

5. Ropeway

6. Merry go round

METHOD OF MINING:-

1. Open cast(32)

2. Underground(31)

METHOD OF LOADING:-

1. CHP

2. Pay loader

WEIGHBRIDGE:-

1. Static

2. In motion

AREA OF CCL:-

1. Argada –Gidi A, Gidi washery, sirka

2. Barka seyal –Bhurkunda, saunda, central saunda, sayal

3. Kuju- NR, Chainpur

4. Hazaribagh

5. Piperwar- Bachara, RCM(Rai ,churi manki)

6. NK(north karanpur)- KDH,Dakra

7. Dhori-selected dhori, tarmi, Dhori new

8. Kathara- Jarangdih II

9. B & K- Jarangdih I, Giridih

10. BCWD (Beneficiated coal washery devision)- Kathara, swang ,Kargali washeries

11. Rajrappa- Rajarappa washery

RAILWAY ZONE COVERD BY CCL:-

1. South eastern railway – Rajrappa

2. Central railway- Giridih

3. East central railway-rest area

PRICE

Domestic Price Fixation

Government of India deregulated the prices of Non-Coking Coal of grades A, B & C, Coking

coal and Semi/Weakly coking coal on 22.03.1996.

Subsequently, on 12.03.1997, Government of India deregulated the prices of non-coking coal of

grade D, Hard Coke and Soft Coke and also allowed Coal India Ltd. to fix coal prices for grades

E, F & G till Jan’2000 once in every six months by updating cost indices as per escalation

formula contained in the 1987 report of the Bureau of Industrial Cost & Prices. With effect from

01.01.2000, CIL was free to fix the prices of such grades of coal in relation to the market prices.

Basic Price of Run of Mine Non-Long-Flame Non-Coking Coal

(In Rupees/ Tonne)

Field/ Co. A B C D E F GECL(for 8 units vide Annex II)

1490 1340 1120 900 680 530 370

ECL/ Mugma(for 16 units vide Annex IV)

1710 1520 1300 1080 860 640 420

ECL/ Rajmahal - - - - 890 760 610

BCCL 1440 1310 1090 900 720 570 410

CCL 1470 1330 1110 910 720 570 410

NCL 1350 1220 1000 840 670 530 390

SECL 1190 1110 950 800 660 520 390

MCL 1160 1030 860 720 560 440 320

2.3 FSA (DISTRIBUTION)

In supersession of existing coal distribution policy for core and non-core sector and other

instructions issued in this regard from time to time, the Government is pleased to approve the

new coal distribution policy. The new policy is as follows:

1. Classification of consumers:

The existing classification of consumers into core & non-core has been

reviewed and it has now been decided to dispense with the same. Instead, each

sector/consumers would be treated on merit keeping in view, inter-alia, the regulatory

provisions applicable thereto and other relevant factors.

2. Distribution and pricing of coal to different consumers/sectors(s):-

2.1 Requirements of defence sector and railways will be met in full at notified price, as at

present.

2.2 Power utilities including in depending power producers (IPPs)/captive power plants

(CPPs) and fertilizer sector.

100% of the quantity as per the normative requirement of the consumers

would be considered for supply of coal, through FSA by CIL at fixed prices to be

declared/notified by CIL. The units/power plants which are yet to be commissioned but

whose coal requirement has already been assessed and accepted by ministry of coal and

linkage/letter of assurance (LOA) approved as well as future commitments would also be

covered accordingly.

2.3 Other consumers

75% of the quantity as per the normative requirement of the consumers’ actual

users would be considered for supply of coal through FSA by CIL at notified price to be

fired and declared by CIL. The balance 25% of coal requirement of the units will be

sourced by them through e-auction/import of coal etc.

3. Consumers in small and medium sector:-

The state govt. Are requested to work out genuine requirements of such units on small

and medium sector like smokeless fuel, brick kiln, coke even units etc. On a transparent

and scientific basis and distribute coal to them accordingly. The state govt. may take

appropriate steps to evaluate the genuine consumption and monitor use of coal. The

present cap is also enhanced to 4200 tonnes per annum for the targeted consumers under

this category.

4. Replacement of linkage system by FSA :-

The linkage system will be replaced with a more transparent with a more transparent with

a more transparent bilateral commercial arrangement of enforceable FSAs. All the

existing valid linked consumers whose linkage/MPQ during the year 2006-07 was 4200

tonnes or more would have to enter FSAs with coal companies not later six months from

a date to be notified by CIL.

5. Policy for new consumers.

The letter of Assurance (LOA) to be issued now pursuant to the new policy will have a

validity of 24 months for consumers/applicants of power utilities.

CPPs & IPPs and 12 month for other consumers instead of 30 month as

earlier. The allotted of LOA would be required to fulfil certain stipulated conditions and

meet the milestone within this period and there upon approach coal companies for

entering into FSA, such FSA would be completed within three months.

6. Letter of Assurance for new consumers:-

New consumers from state/central power utilities, (PPS independent Power Producers

(IPPs). Fertilizer, cement and sponge iron units may be issued LOA, based on prevailing

norms and recommendation of Administrative Ministry, which may inter-alia have regard

to LOA/Linkage already granted to the consumer of specific sector, existing capacity,

requirement for capacity addition during a plan period etc.

7. FSAs with New Consumers:-

On successfully achieving the milestones stipulated in LOA Coal companies would

execute FSA with the applicant consumer covering commercial arrangement for supply

of coal. FSAs would be inter-alia, based on ‘Take or Pay’ principle.

8. Role of standing linkage committee:-

The existing SLC LT) will continue to recommend issuing of LOA in respect of Power

Utilities including CPPs & IPPs, cement and sponge iron, including steel, as is being

done at present. It may also perform other function as per its terms of reference for coal

sector as a whole.

9. Discipline and economy in coal use:-

Coal is no longer an essential commodity but it is still considered a scarce fuel and hence

it must be used efficiently and economically. The consumers getting coal through FSA

would be expected to use it efficiently so as not to waste this scarce resource and hence

norms and efficiency compliance should be carried out diligently by the concerned

designated authority/agencies.

10. E-auction of coal:-

Coal distribution through e-auction was introduced with a view to provide access to coal

for such consumers who are not able to source coal through the available institutional

mechanisms for reasons like the seasonality of coal requirement, limited requirement of

coal not warranting long-term linkage etc, In the long run, it is expected that e-auction

may help in creating spot as well as future market of coal in the country.

11. Verification of erstwhile noncore sector consumers

CIL would undertake verification of such consumer of erstwhile non-core sector

consumers, in a time bound manner, either directly or through an agency, so as to check

the veracity of their claim of being bonafide consumers of coal and thereafter act

accordingly.

FUNCTION OF SALES DEPARTMENT:-

The main function of sales department is to dispatch of goods. There are eight sections.

1. TRAFIC SECTION:- Deal with railway for supply of rake.( A.K. Verma, M.S. Bhutani,

Jitendra singh)

2. Road sales section:- This section take care of all the activity related to supply of coal

through roadways.(A.P.Trivedi,Ajit singh, Shiv sharan, Sunil)

3. Legal Section:- This section concerned with legal dispute settlement. Customer

grievance comes under this department. (R.B.Lal)

4. FSA (Fuel Supply Agreement) Section:- This section take care of agreement with

customer. (Hitesh Verma)

5. E- auction:- Work related with auction is known as e-auction.(Rajesh Mishra)

6. SCP (Sales Co-ordination and Planning):- yearwise, monthwise, areawise, sidingwise,

sectorwise, dispatch planning(Rajesh Mishra, N.K.Minz)

7. Sales Administration:- All the stationary and official items are provided by sale

Administration.(R.B. Lal)

8. Sales Realisation:- All the coal supply on the basis of advance money. When the

advance money become more or less then this department take care of this type of

activity.(D.K. Acharya, Hitesh Verma)

MODE OF SUPPLY OF COAL:-

1. Railway

2. Roadways

E-AUCTION:-

There are two companies who conduct auction for CCL.

1. MSTC

2. Metajunction

There are two types of auction:-

1. Spot e-auction-on date

2. Forward e-auction-for the next quarter

Terms & Conditions of Spot e-Auction Scheme 2007

Objective:

Coal distribution through e-Auction has been introduced with a view to

provide access to coal for such buyers who are not able to source coal through the

available institutional mechanism. In the long run it is expected that e-Auction may

help in creating spot as well as future market of coal in the country.

The purpose of e-Auction is to provide equal opportunity to purchase

coal through single window service to all intending Buyers.

Terms & Conditions

With reference to para VI (4) of the ‘e-Auction Scheme 2007’ for Spot

e-Auction the detailed terms and conditions are given below :

1. Eligibility:

Any Indian Buyer (viz. individual, partnership firm, companies etc.) can

participate in e-Auction for procurement of coal.

2. Registration:

Before participation in the e-Auction, a prospective Buyer shall be required to get itself / himself

registered with the Service Provider appointed by the CIL / Coal Companies for the purpose, by

submitting an application in the prescribed format available on the Website of the respective

Service Providers.

3. Notification:

Coal companies would draw program for conducting at least two e-

Auctions per month and notify the same, minimum 7(seven) days in advance,

through display on the Company’s notice board and putting the same on the Coal Company’s

websites for wide publicity. The program will be intimated to the Service providers accordingly

for hoisting the same on their websites also.

4. Bidding Process

The registered Bidders shall be required to record their acceptance after login, of the Terms &

Conditions of the e-Auction before participation in the company. Before participating in e-

Auction, bidders are to satisfy themselves with the quality of coal being offered from a source.

5.Post e-Auction process:

Each successful bidder will be intimated through e-mail / SMS by the

Service Provider on the same date after the closure of e-Auction. However, it will be the

responsibility of the bidder to personally see and download the result displayed on website, on

the same date after close of e-Auction.

6. Terms of payment:

The coal value to be deposited in advance by the successful bidders shall be computed and

deposited after making provision for the EMD amount for the

successful bid quantity already transferred by the service provider to the subsidiary company. In

other words, the coal value to be deposited and EMD amount together, shall be equivalent to the

100 % coal value.

7. Procedure of Coal Delivery

By Road: Coal company shall issue Sale / Delivery Orders to the successful

bidders in terms of Clause 6.4 after realisation of payment. The Buyer has to submit the option

before the issue of the Sale / Delivery Order for movement of the coal “within state” or “outside

state” and the Sale / Delivery Order would indicate the same accordingly. However, the challan

issued by the Coal Company shall indicate the destination.

By Rail: The seniority of buyers in case of rail borne supplies shall be guided by

the seniority list as provided by the service provider based on buyer’s bids.

8. Refund of EMD for Unsuccessful bidders:-

In case of unsuccessful bidders, EMD shall be refunded by the Service

Provider after the auction is over, on the bidder’s request. However, if no such

request is received the Service Provider will retain the EMD for participation in e-Auction in

future.

9. Refund of Coal value:

The balance coal value of the unlifted quantity after the expiry of the

validity period for supply of coal and completion of required commercial formalities shall be

refunded subject to forfeiture of EMD if required, in terms of the forfeiture clause as above.

CHAPTER III

METHODOLOGY

3.1 RESEARCH METHODOLOGY

The research methodology is a frame work that is used to collect data from various people, to

know the opinion of various people regarding the study that is being done .This frame work

makes it easy for the collection of data from an inference can be drawn.

RESEARCH DESIGN:

The research design that is being used is descriptive method.

Advantages of descriptive method:

• The research is being conducted with a group of people from which the interpretations

can be easily made.

• The research is done with few number of people

The data that we use is both PRIMARY and SECONDARY data.

PRIMARY DATA:

The data that we have calculated is a primary data (i.e.) the data is collected from the public

people by conducting questionnaire.

SECONDARY DATA:

The data is called secondary data that is not collected from the public that is being acquired from the journals, magazines and various articles from net. SAMPLING In this project, I have taken 40 peoples for making the survey report on the basis on questionnaires.

CHI-SQUARE TEST The objective of the chi-square test is to determine whether real of significant differences exist among the various groups. Chi-square rest involves comparison of expected frequency (Ei) with observed frequency (Oi). To determine whether the difference between the two in greater than which might occur by chance. There are 5 steps in using chi-square test. 1. The difference between each observed frequency and each expected frequency is computed. 2. The differences are squared. 3. Each squared difference is divided by its respective expected frequency. 4. Their quotient is added together to obtain the computed chi-square. 5. This computed value is then compared to tabulated chi-square. If the computed X2 values are greater then the tabulate X2 values at the predetermined level of significance and degree of freedom, the hypothesis rejected. On the other hand if calculated X2 value is less the tabulated values, the hypothesis is accepted. The formula is X2 = [(O-E) 2] / E Where, X2 = Chi-square O = Observed frequency E = Expected frequency

ANOVA (F-Test) The analysis of variance (ANOVA or F-test) is used in such problem where a research wants to test for the significances of the difference between more than two as sample mean. This is one of the most powerful statistical techniques. The ANOVA is used in every type of experiment design concentrating both natural and social sciences. One Way Classifications In one way classifications, data are collected according to one criterion. The null hypothesis takes the form that is; arithmetic means of the population from which the K samples are randomly drawn are equal to one another. Following steps are involved in the analysis of variance i) Compute the variance between the samples: Further steps involved to calculate variance between samples are calculated the mean of each samples. a) Calculated the grand average mean. b) Take the difference between mean of the various samples and grand averages. c) Square these deviations and obtain the total which will give sum square between the samples & d) Divide the total obtained in steps (d) by degree of freedom. The degrees of freedom will be one less than the no. of samples. ii) Calculated the variance with in the samples: The step involved here is a) Calculated the mean of each sample. b) Take the deviations of various items in a sample from the mean values of the respective samples. c) Square these deviations and obtain the total which gives the sum of squares within the samples and

d) Divided the total obtained in the step (c) by degrees of freedom. The degrees of freedom are obtained by deducting from the total no. of items the no. of samples. Degree of freedom = n – k Where, k-is the no. of samples n-is the total no. of all observations iii) Calculated the F ratio as follows Variance between the samples F = ------------------------------------- Variance within the samples Compare the calculated F values of freedom of at certain level of significance (Generally 0.05). If the calculated values of F exceeds the tabular values. Then the different in samples mean is significant that is due to simple sampling fluctuation or samples do not come from the same population on the other hand, it the calculated values F is less than the table values, the difference is not significant and hence, could have arisen due to fluctuation of simple sampling.

3.2 DATA ANALYSIS AND INTERPRETATION

COAL RESERVES

(Up to 600 meter)

TABLE 3.1

Medium coking coal 14.023 BT Non-coking coal 19.539 BT Total Reserve 33.562 BT

CHART 3.1

Total Area of Operation - 2600 Sq. Km Interpretation:-

a) Non coking coal is more available in according to given data.

a) The percentage availability of coking coal is 42%.

b) The percentage availability of non-coking coal is 58%.

PRICING OF COAL:- Basic Price of Run of Mine Non-Long-Flame Non-Coking Coal (In Rupees/ Tonne) TABLE 3.2

Field/ Co. A B C D E F G

ECL(for 8 units vide Annex II) 1490 1340 1120 900 680 530 370

ECL/ Mugma(for 16 units vide Annex IV) 1710 1520 1300 1080 860 640 420 ECL/ Rajmahal - - - - 890 760 610 BCCL 1440 1310 1090 900 720 570 410 CCL 1470 1330 1110 910 720 570 410 NCL 1350 1220 1000 840 670 530 390 SECL 1190 1110 950 800 660 520 390 MCL 1160 1030 860 720 560 440 320

CHART 3.2

Pricing of coal

0200400600800

10001200140016001800

A

B

C

D

E

F

G

Interpretation:-

1. From the given data we find that the price of grade A is the most costly and that of G grade is the least.

2. Price is depending upon the quality of coal.

3. Grade A coal’s quality is the best among them. That’s why it’s price is more than other grade of coal.

Table: 3.3

SATISFIED WITH THE SERVICE OF THE COMPANY

No. of Respondents Percentage

Yes 22 55%

No 8 20%

Cannot Say 2 5%

Others are better 8 20%

TOTAL 40 100%

Analysis:

55% of

the comCHART

Table: 3

FACIN

Yes

No

Alwa

Neve

TOT

Analysi

10% of

compan

they are

Chart:

f the intervi

mpany, 20%T: 3.3

3.4

NG ANY P

ays

er

TAL

is:

f interview

ny distribut

e never fac

3.4

Yes

22

iewees hav

% says no,

PROBLEM

wees have

tion system

ing any pr

No

8

No. of  No. 

ve the opin

5% cannot

M WITH C

No. of

the opini

m, 75% say

oblem.

Cannot Say

2

Respondof  Responden

nion that th

t say and 2

COMPAN

f Respond

4

30

1

5

40

ion that th

ys no, 2.5%

Others are better

8

dentsnts

hey are sat

20% says th

NY DISTR

dents

hey are fa

% says alw

isfied with

hat others a

RIBUTION

Perce

10%

75%

2.5%

12.5%

100

facing prob

ways and 1

h the servic

are better.

N SYSTEM

entage

%

%

%

%

%

blem with

2.5% says

ce of

M

h the

that

4

30

15

Yes No Always Never

No. of  RespondentsNo. of  Respondents

Table: 3.5 OTHERS COMPANIS ARE BETTER THAN CCL

No. of Respondents Percentage

Yes 8 20%

No 32 80%

TOTAL 40 100 %

Analysis:

20% of interviewees have the opinion that others company are better than CCL and

others 80% says that the others company are not better than the company.

Chart: 3.5

No. of  Respondents

Yes

No

Table: DELIV

Very

Satisf

Slow

TOTA

Analysi20% of

very fas

slow.

Chart:

Very fast   

3.6 VERY TIM

fast

factory

w

AL

is: f interview

st, 72.5% s

3.6

8

ME OF CO

ees have t

says satisf

Satisfac

2

No. of  RNo. o

OAL BY C No. of

the opinion

factory and

ctory

29

Respondof  Respondent

CCL Responde

8

29

3

40

n that the p

d others 7.

Slow

3

dentss

ents

processing

5% say th

Percen

20%

72.5

7.5%

100

g time of th

at the proc

ntage

%

5%

%

%

he compan

cessing tim

ny is

me is

Table: CURRE

More

Suffi

Less

TOTA

Analysi70% of

more th

position

Chart:

More thansufficient  

3.7 ENT POS

e than suf

ficient

than suff

AL

is: f interview

han suffici

n of the com

3.7

n       

28

No

ITION OF

fficient

ficient

ees have t

ient, 20%

mpany is le

Sufficient

8

o. of  ReNo. of  Re

F CCL

No. of

the opinion

says suff

ess than su

t Lesuf

espondenespondents

Responde

28

8

4

40

n that the c

ficient and

ufficient.

ess than fficient

4

nts

ents

current po

d others 10

Percen

70%

20%

10%

100

sition of th

0% say th

ntage

%

%

%

0 %

he compan

hat the cur

ny is

rrent

Table: WANT

Yes

No

TOTA

Analysi

15% of

service

Chart:3

0

5

10

15

20

25

30

35

3.8 T ANY CH

AL

is:

f the interv

and 85% s

3.8

Yes

HANGES I

viewees ha

says that th

N

No. of 

IN THE C

No. of

ave the opi

hey don’t w

No

 Respon

COMPANY

Responde

6

34

40

inion that

want chang

ndents

N

Y SERVIC

ents

they want

ge in the co

o. of  Respond

CE

Percen

15%

85%

100

t change in

ompany ser

ntage

%

%

0 %

dents

n the comp

rvice.

pany

Table 3.9 ANALYSIS TO FIND OUT THE RELATIONSHIP BETWEEN THE BTST

AND DISSATISFACTION

LEVEL OF THE SERVICES PROVIDED BY Observed frequency (O)

Expected frequency (E)

(O-E) 2 (O-E) 2/E 2

28 28.8 0.64 0.022 20 21.6 2.56 0.118 32 28.8 10.24 0.335 28 28.8 0.64 0.022 12 11.2 0.64 0.057 10 8.4 2.56 0.304 8 11.2 10.24 0.914 12 11.2 0.64 0.057 2

Σ (O-E) = ------------------

E = 1.849 Calculated value of X 2 = 1.849 Degree of freedom = (C-1) (r-1) = (4-1) (2-1) = 3 The value 3 at 5% of significance the level for 5 degree of freedom = 7.815 INFERENCE: Since the calculated value of the X 2 is less than the table value, we accept the null hypothesis and concluded that there is no significant relation between BTST and the dissatisfaction level of the service rendered by CCL.

CHAPTER IV

FINDING, SUGGESTION & RECOMMENDATION

4.1 FINDING

a) Consumers are classified into two types-core and non-core.

b) Requirements of defence sector and railways will be met in full at notified price.

c) 75% of the quantity as per the normative requirement of the consumers’ actual supply of

coal through FSA by CIL. The balance 25% of coal requirement of the units will be

sourced by them through e-auction/import of coal etc.

d) Distribution of coal is done by railway and roadway from CCL.

e) Non coking coal is more available in according to given data.

f) The percentage availability of coking coal is 42%.

g) The percentage availability of non-coking coal is 58%.

h) Grade A coal’s quality is the best among them. That’s why it’s price is more than other grade of coal.

i) The letter of Assurance (LOA) to be issued now pursuant to the new policy will have

a validity of 24 months for consumers/applicants of power utilities.

j) FSAs would be inter-alia, based on ‘Take or Pay’ principle.

k) Supply of coal to steal plant would be based on FSA. The price of Coal would be on

the basis of coal import parity prising with suitable adjustment for quality. The

system is already vogue.

4.2 SUGGESTION AND RECOMMENDATION

1. Now days, CCL is facing problem to fulfill the demand of its customer. So it should pay

attention towards high level of coal production.

2. It should pay attention towards sales promotion also.

3. CCL should pay attention towards the security of people who live near coal fields, because sometimes they have to face a lot of problems.

CHAPTER V

CONCLUSION, BIBLIOGRAPHY, APPENDIX

5.1 CONCLUSION

Coal is one of the primary sources of energy, accounting for about 67% of the total energy consumption in the country.

India has some of the largest reserves of coal in the world.

Indian coal has high ash content and low calorific value. However, with the present

rate of around 0.8 million tons average daily coal extraction in the country, the

reserves are likely to last over 100 years.

The energy derived from coal in India is about twice that of energy derived from oil,

as against the world, where energy derived from coal is about 30% lower than energy

derived from oil.

QUESTIONNAIRE

NAME………………………………………………………………………

DATE OF BIRTH………………………………………………………….

CITY……………………………………………………………………….

ADDRESS…………………………………………………………………

TEL NO…………………………………………………………………….

EMAIL ID…………………………………………………………………

1. ARE YOU AWARE OF CCL?

a) Yes b) No

2. WHAT IS YOUR VIEW ABOUT CCL?

a) EXCELLENT b) GOOD

c) Bad d) No comment

3. ARE YOU FACING ANY PROBLEM WITH COMPANY DISTRIBUTION SYSTEM?

a) Yes b) No

c) Always d) Never

4. DO YOU THINK THAT OTHERS COMPANIES ARE BETTER THAN CCL?

a) Yes b) No

5. DELIVERY TIME OF COAL BY CCL?

a) Very fast b) Satisfactory

c) Slow

6. WHAT DO YOU THINK ABOUT CURRENT POSITION OF CCL?

a) More than sufficient b) Sufficient

c) Less than sufficient

 

7.DO YOU WANT ANY CHANGES IN THE COMPANY SERVICE? 

a) Yes b) No

BIBLIOGRAPHY

BOOKS

1. Philip Kotler, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha (2008),

Marketing Management, 13th edition, Pearson education, New Delhi

2. K. Kundan (2009), Marketing Aptitude Test, BSC Publication, Delhi

WEBSITE REFERED

1. www.google.co.in

2. www.wikipedia.com

3. www.coalindia.nic.in