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Directors Report of Coal India Ltd.

Mar 31, 2015

Dear Members,

On behalf of the Board of Directors, I have great pleasure in presenting to you, the 41st Annual Report of Coal India Limited (CIL) and Audited Accounts for the year ended 31st March, 2015 together with the reports of Statutory Auditors and Comptroller and Auditor General of India thereon.

Coal India Limited (CIL) is a 'Maharatna' company under the Ministry of Coal, Government of India with headquarters at Kolkata, West Bengal. CIL is the single largest coal producing company in the world and one of the largest corporate employers with manpower of 3,33,097 (as on 1st April, 2015). CIL operates through 82 mining areas spread over eight provincial states of India. Coal India Limited has 430 mines of which 227 are underground, 175 opencast and 28 mixed mines. CIL further operates 15 coal washeries, (12 coking coal and 3 non-coking coal) and also manages other establishments like workshops, hospitals, and so on. CIL has 27 training institutes. Indian Institute of Coal Management (IICM) is an excellent training centre operates under CIL and imparts multi-disciplinary management development programmes to the executives. Coal India's major consumers are Power and Steel sectors. Others include cement, fertilizer, brick kilns, and a host of other industries.

CIL has eight fully owned Indian subsidiary companies (direct): Eastern Coalfields Limited (ECL),

Bharat Coking Coal Limited (BCCL),

Central Coalfields Limited (CCL),

Western Coalfields Limited (WCL),

South Eastern Coalfields Limited (SECL),

Northern Coalfields Limited (NCL),

Mahanadi Coalfields Limited (MCL) and

Central Mine Planning & Design Institute Limited (CMPDIL).

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

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

MCL has three subsidiaries, namely MNH Shakti Ltd., MJSJ Coal Ltd. and Mahanadi Basin Power Ltd.

a. MNH Shakti Limited

MNH Shakti Ltd was incorporated on 16th July, 2008 as a Joint Venture Company of MCL. MNH Shakti Ltd had been formed for operation of Talabira OCP block where MCL is holding 70% share, Neyveli Lignite Corporation Ltd 15% share and Hindalco Industries Ltd. balance 15% share. The Share Capital of MNH Shakti Ltd. as on 31-03-2015 was Rs. 85.10 Crore. The Hon'ble Supreme Court of India in its judgment dated 25.08.2014 and order dated 24.09.2014 declared allocation of Talabira - II and Talabira - III coal blocks allocated to MNH Shakti Ltd. as illegal and has quashed the allocation.

b. MJSJ Coal Limited

MJSJ Coal Ltd was incorporated on 13th August, 2008 as a Joint Venture Company of MCL. MJSJ Coal Ltd had been formed for operation of Gopalprasad OCP where MCL is holding 60% share, JSW Steel Limited and JSW Energy Limited 11% share each and Shyam Metalics and Energy Ltd (formerly known as Shyam DRI Power Limited) and Jindal Stainless Limited 9% share each. The paid up Share Capital of MJSJ Coal Ltd. as on 31-03-2015 was Rs. 95.10 Crore. The Hon'ble Supreme Court of India in its judgement dated 25.08.2014 and order dated 24.09.2014 declared allocation of Utkal-A coal block allocated to MJSJ Coal Ltd. as illegal and has quashed the allocation.

c. Mahanadi Basin Power Limited

Another Company "Mahanadi Basin Power Limited (MBPL)" was incorporated on 2nd December, 2011 and certificate for commencement of business issued by ROC on 06-02- 2012. MBPL had been formed as an SPV with wholly owned subsidiary of Mahanadi Coalfields Ltd for power generation of 2x800 MW through Pit Head Power plant at Basundhara Coalfields. The Share Capital of Mahanadi Basin Power Limited as on 31-03-2015 was Rs. 5 Lakhs.

Subsidiaries of SECL

SECL had incorporated two subsidiary companies viz.

M/s Chhattisgarh East Railway Ltd on 12th March'2013 and M/s Chhattisgarh East- West Railway Ltd on 25th March'2013 with 64% holding in each of the subsidiaries for construction of railway lines for expeditious evacuation of coal.

1. NOTABLE ACHIEVEMENTS DURING 2014-15

a. CIL achieved a production of 494.24 MT of coal, removed 886.53 MM3 of OB and achieved an off- take of 489.38 MT with a growth of 6.88%,9.92% & 3.77% respectively compared to the last year.

b. All subsidiaries achieved a growth in production compared to the last year. There was an impressive growth in OB removal during 2014-15. Except MCL, all other subsidiaries had achieved a growth in OB removal. The negative growth in MCL was on account of land acquisition problems. All subsidiaries other than BCCL had achieved a growth in off-take compared to the last year. The negative growth in BCCL was due to less supply of wagons.

c. ECL came out of BIFR. BCCL was awarded Mini Ratna status.

d. Government of India divested further 10% of its holding in CIL in January 2015. An amount of Rs. 22,557 crores was realized. This was the highest divestment amount received by the GoI by selling its stake in any company till date.

e. CIL Board had approved 7 Coal Projects having an annual capacity of 73.42 MT.

f. Project Report for setting up of Super Critical Thermal Power Project (2X800MW) at MCL namely Mahanadi Basin Power Limited was approved by CIL Board.

2. FINANCIAL PERFORMANCE

2.1 Financial Results (CIL consolidated)

CIL is one of the largest profit making and tax & dividend paying enterprises. CIL and its subsidiaries had achieved an aggregate pre-tax profit of Rs. 21,583.92 crores for the year 2014-15 against a pre-tax profit of Rs. 22,879.54 crores in the year 2013-14.

(Rs. in crores)

Company 2014-15 2013-14

(CIL subsidiaries/ CIL standalone) Profit Profit

ECL ( ) 1782.41 ( ) 1299.28

BCCL ( ) 1154.22 ( ) 2089.01

CCL ( ) 2740.34 ( ) 2525.87

NCL ( ) 3713.47 ( ) 3355.71

WCL ( ) 544.79 ( ) 325.86

SECL (consolidated) ( ) 5659.46 ( ) 7202.40

MCL (consolidated) ( ) 5314.24 ( ) 5429.08

CMPDIL ( ) 39.33 ( ) 34.60

CIL (standalone) ( ) 13651.89 ( ) 15420.47

Sub-Total ( ) 34600.15 ( ) 37682.28

Less: Dividend from Subsidiaries (-) 13011.72 (-) 14406.82

Total ( ) 21588.43 ( ) 23275.46

Adjustment for exchange rate variation on Current Account of overseas subsidiary ( ) (4.51) ( ) 0.72

Adjustment for waiver of accrued interest of BCCL - (-) 396.64

Overall Profit as per Consolidated Accounts ( ) 21583.92 ( ) 22879.54

CIL as a group had achieved a post tax profit of Rs. 13,726.70 crores in 2014-15 (excluding share of minority loss of Rs. 0.09 crore; previous year Rs. 0.04 crore) as compared to Rs. 15,111.67 crores in 2013-14.

Highlights of performance

The highlights of performance of Coal India Limited including its Subsidiaries for the year 2014-15 compared to previous year are shown in the table below:

2014-15 2013-14

Production of Coal (in million tonnes) 494.24 462.42

Off-take of Coal (in million tonnes) 489.38 471.58

Sales (Gross) (Rs./Crores) 95434.76 89216.86

Capital Employed (Rs./Crores) Note- 1 76554.91 74891.87

Capital Employed (Rs./Crores)- excluding capital work in progress and 71395.54 70576.06 intangible assets under development.

Net Worth (Rs./Crores) (As per Accounts) 40343.33 42391.86

Profit Before Tax (Rs./Crores) 21583.92 22879.54

Profit after Tax (Rs./Crores) 13726.70 15111.67

PAT / Capital Employed (in %) 17.93 20.18

Profit before Tax / Net Worth (in %) 53.50 53.97

Profit after Tax / Net Worth (in %) 34.02 35.65

Earnings Per Share ( Rs.) 21.73 23.92

(Considering Face Value of Rs.10 per share)

Dividend per Share (Rs.) 20.70 29.00

(Considering Face Value of Rs.10 per share)

Coal Stock (Net) (in terms of No. of months Net Sales) 0.79 0.72

Trade Receivables (Net) (in terms of No of Months of Gross Sales) 1.07 1.11

Note-1:

Capital employed = Gross Block of Fixed assets (including capital work in progress and intangible assets under development) less accumulated depreciation plus current assets minus current liabilities.

Transfer to Reserves

During the year 2014-15, a sum of Rs. 2578.50 crore was transferred to General Reserve out of CIL (Consolidated) profits. This includes transfer of Rs. 1338.34 crore out of CIL (Standalone) profits.

2.2 Dividend Income and Pay Outs (CIL- standalone)

While the financial statements of both CIL standalone and CIL consolidated are presented separately, it is only the CIL (standalone) company which is listed and relevant for dividend payment to its shareholders. The dividend to its shareholders are paid out of CIL's standalone income, the major part of which constitutes of the dividend income received by it (CIL- standalone) from its five profit making subsidiaries i.e. CCL, NCL, WCL, SECL and MCL.

The breakup of such dividend (interim final) received and accounted for during the year from different subsidiaries are given below:-

During the year Coal India Limited (standalone) has paid a total dividend (by way of interim dividend) of Rs. 13074.88 crores @ Rs. 20.70 per share (Rs. 18317.46 crores @ Rs. 29.00 per share) on 6316364400 number of Equity Shares of Rs. 10/- each fully paid up. Out of above total dividend, the share of Govt of India was Rs. 10414.14 crores and for other shareholders, Rs. 2660.74 crores. (Previous year - Govt of India - Rs. 16485.71 crores and other shareholders - Rs. 1831.75 crores)

2.3 Observation of the Statutory Auditors

The Statutory Auditors have given their observations on the standalone and consolidated accounts of the Company for the year ended 31st March'2015. The Auditors' observations in terms of Section 134(3)(f)(i) of the Companies Act'2013 and Management Explanation are enclosed as Annexure-V and Annexure-XV(B).

3. COAL MARKETING

3.1 (a) Off-take of Raw Coal

Off-take of raw coal continued to maintain its upward trend and reached 489.377 million tonnes for fiscal ended March 2015, surpassing previous best of 471.581 million tonnes achieved during the last year, i.e., an increase of 3.8 % over the last year. The overall raw coal off-take achieved was 94.1 % of the Annual Action Plan Target.

Company-wise target vis-a-vis actual off-take for 2014-15 and 2013-14 are shown below:

From the above, it may be seen that ECL had not only exceeded its target but also achieved a positive growth compared to the last year.

Barring BCCL, all other coal companies had registered a positive growth in off-take.

Off-take suffered mainly due to:

- Transportation constraints resulting from seizure of transport trucks for election purposes in almost all the coal companies during the General Election in the First Quarter.

- Major accident near Latehar affecting traffic movement in Mughalsarai section for 3 days during September'14.

- Production constraint and ageing infrastructure caused frequent CHP breakdown at various projects at NCL, delay in renewal of transportation contracts at the coal companies, Local agitation / Law & order problem at CCL/ MCL.

- Restriction in transportation at MCL during 11AM to 3 PM by Odisha Govt, in the months of May-June.

- Restriction imposed by District Administration for transportation of coal between 9.00 AM to 5.00 PM resulting in loss of 4 to 5 rakes per day at MCL-Ib Valley.

- Inadequate availability of wagons at MCL-Ib Valley, SECL-Korba and at ECR-served sidings of BCCL/CCL. Coal transportation constraints at SECL due to the delay in finalization of ESM contracts & transportation constraints at WCL.

- Heavy rain during monsoon and effect of Cyclone Hud-Hud at NCL, MCL and CCL during October'14.

- Strike by Trade Union affecting off-take & loading during January'15 and railway restriction for up-country movement / inadequate availability of wagons during the 4th quarter.

Sector-wise break-up of dispatch of coal & coal products in 2014-15 against the target and last year's actual is given below:

In order to cater to the enhanced requirement of power sector due to decrease in stock at power plants and increase in number of power plants carrying critical coal stock, quantity offered through e- auction was regulated leading to negative growth in other sector.

3.2 Dispatches of coal and coal products by various modes

Dispatches of coal and coal products during 2014-15 went upto 489.982 million tonnes from 471.484 million tonnes registering a growth of 3.9 %. Overall dispatch by Non-Rail mode had been almost 101% of the target. Growth in despatches via Rail mode was 2.7 % whereas in the overall Non-Rail mode it increased by 5.4 %. Road despatches increased by 8.2% over the previous year. Movement by MGR was 1.5% above the last year.

Dispatch of coal and coal products by various modes for the years 2014-15 and 2013-14 is given below:

3. 3 Wagon Loading

Overall wagon loading materialization was 89.1 % of the target. This was achieved due to sustained efforts and regular coordination with railways at various levels. The increase in loading over the last year was of 4.3 rakes per day. Company-wise performance showed that WCL achieved its target. ECL, BCCL, CCL, WCL, MCL &NEC exceeded last year's level of loading.

Wagon loading suffered mainly due to intermittent law and order problem at CCL and MCL, delay in finalization of ESM road transport contracts at SECL, transportation constraints at WCL and CHP problem at various projects of NCL.

3.4 Consumer satisfaction

i. In order to ensure enhanced customer satisfaction, special emphasis was given to quality management. Various steps are taken to monitor quality right at the coalface apart from bringing further improvements in crushing, handling, loading and transport system.

ii. CIL has built coal handling plants for a capacity of about 296 MT per annum so as to maximize dispatches of crushed/sized coal to its consumers. In addition, Washeries at BCCL, CCL, WCL and NCL have adequate crushing / sizing facilities to the tune of about 36.8 million tonnes.CIL has also initiated action to establish 15 more coal washeries with combined capacity of 112.6 Mty.

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

iv. Surface Miners have been deployed by CIL for selective mining at some of the OCP mines to improve the quality of coal. Action is being taken for deployment of more surface miners in other OCP mines where geo-mining condition permits their usage. Already 56 Surface Miners have been deployed in CIL at opencast mines which are working satisfactorily.

v. Joint sampling system is in vogue for major consuming sectors e.g. power utilities, steel, cement, sponge iron covering more than 95% of total production of CIL. Large consumers having annual quantity of 0.4 MT or more and having FSA have been covered under sampling.

vi. From 1st October, 2013, independent 3rd party sampling and analysis was introduced for more transparency in the system. Subsidiary coal companies have procured 121 Bomb Calorimeters for more accurate and transparent results of analysis of coal samples. The sampling and analysis are being done in the presence of customers as per provision of FSA at loading end, and based on the results, the customers are paying coal bills as per the analyzed grades. During 2014-15 the achievement of grade conformity in respect of sampling and analysis was to the tune of 97.17% in respect of supplies to power sector.

vii. Pursuant to the decision taken in the meeting with Association of Power Producers during June 2014, on and above the existing system of coal sampling at the loading end, it was decided that power producers may also engage their Third Party Agency from a list of 25 empanelled agencies for taking part in drawing coal samples and analyzing the same. In view of the above, PUs / IPPs have started selecting agencies w.e.f. December' 2014 onwards and finalized them except a few who are in process of finalizing.

viii. Electronic weighbridges with the facility of electronic printout have been installed at rail loading points to ensure that coal dispatches are made only after proper weighment. For this purpose, Coal Companies have installed 157 rail weighbridges in the Railway Sidings and 569 road weighbridges for weighment of trucks. Coal companies have also taken action for installation of standby weighbridges to ensure 100% weighment.

ix. 24 Auto Mechanical Samplers (AMS) are also working in subsidiary coal companies for coal sampling for the bulk consumers eliminating chances of biasness in the sampling process. Procurement of further AMS is under process. Thought process for installing online analyzers in new washeries on conveyor belts for proper quality management has also started.

x. In order to ensure consumer satisfaction and resolve consumer complaints, special emphasis has been given to quality management and redressal of consumer complaints. Percentage of complaint resolved was 99.44% [April 2014 to March 2015].

xi. CIL has taken initiative and is trying its best to get NABL [National Accreditation Board for Testing and Calibration Laboratories] accreditation for main laboratories of different subsidiary coal companies. One lab at MCL has been accredited by NABL in addition to the earlier one existing at WCL.

3.5 Marketing of Coal

Status of execution of Fuel Supply Agreements and performance of e-auction:

Supply of coal was made to various consumers including Power Sector under the applicable provisions of the New Coal Distribution Policy (NCDP). Due to the overall deficit in availability of coal considering the projected coal production from domestic sources and commitments made through signing of FSAs/issuance of Letter of Assurances (LOA) supplies under the FSAs has been pegged at various levels of commitments (trigger). Power sector being the major consuming sector having significant importance in the economy, supplies to power sector has been guided as per the government directives and polices.

(i) For power stations commissioned on or before 31.03.2009, a quantity of 306 million tonnes had been considered to be supplied through bilateral legally enforceable Fuel Supply Agreements (FSA) with a trigger level of 90%. The total quantity covered under FSA against the allocation as on March'15 was 305 million tonnes.

Apart from the above, 180 Letter of Assurances has been issued to power plants by subsidiary companies of CIL, as per the recommendations of various SLC (LT) meetings for a quantity of about 426.86 Million tonnes. Further as per Presidential Directives dated 16-4-2012 and dated 17-7- 2013 the list of Power Plants and aggregate capacity were revised. A total 173 TPPs were listed with an aggregate capacity of 78535 MW. Till 31.3.2015, 161 FSAs have been signed with Power Plants for an aggregate capacity of 74275 MW. However, TPPs having capacity of 57730 MW have furnished long-term Power Purchase Agreement (PPA) and qualify for commencement of coal supply subject to commissioning etc. After resolving issues with NTPC, NTPC has signed FSA for its power plants for plant capacity of 13510 MW both for its owned and Joint venture Plants.

(ii) In addition, in terms of Presidential Directive dated 17th July'13, coal is being supplied to power houses of 4660 MW having no fuel linkage with CIL on best effort MoU basis on the condition that such supplies do not adversely affect the availability of coal for the identified plants of 78000 MW capacity.

(iii) Out of 1208 valid linked units other than power and steel plants with eligible FSA quantity of 76.24 million tonnes, 762 units have operative FSAs for 50.92 million tonnes. FSAs of the existing consumers were signed in 2008.Tenure of these FSAs being 5 years; many of the FSAs were renewed.

(iv) For supply of coal to SME sector, 8 million tonnes was earmarked by CIL for allocation to agencies nominated by the State Govt's/ UT's. 14 states / UT's had sent nomination of 18 state agencies for the year 2014-15 out of which 15 state agencies signed FSAs for 3.45 million tonnes and drawing coal.

(v) After implementation of NCDP, 417 LOAs were also issued to consumers of sponge iron, CPP and cement as per the recommendations of various SLC (LT) meetings for a quantity of 63.86 million tonnes per annum. Of these, 333 FSAs have been concluded till date for a quantity of 45.01 million tonnes per annum. Out of these, 226 FSAs are active as on date for a quantity of 28.03 million tonnes per annum.

(vi) As per the provisions of FSA, CIL undertook import of coal for the power plants opted for taking the same through CIL during the 3rd and 4th quarter of 2014-15. Out of the total quantity firmed by the power plants for about 5 LT, till March 2015,supply was made for 3.3 LT and balance supply was about to be completed.

(vii) Under Forward e-Auction scheme during the year ended March'15, quantity allocated was 3.593 million tonnes as against 4.094 million tonnes allocated during the last year. During the period under review, 45.211 million tonnes of coal was allocated under spot e- auction to the successful bidders as against 58.125 million tonnes of coal allocated during the last year. The notional gain through Spot e-Auction over & above the notified price was 63.7% during 2014-15.

3.6 Coal Beneficiation

At present, CIL has a total coal washing capacity of 36.8 million tonnes per year (Mty) through 15 existing washeries, of which 12 are coking and 3 non coking with 23.30 Mty and 13.5 Mty capacity respectively. In addition to this, CIL plans to set up further 15 washeries having state-of-the-art and innovative technologies in the field of coal beneficiation with an aggregate throughput capacity of 112.6 Mty. Out of these, 6 are planned to wash coking coal with a cumulative capacity of 18.6 Mty, 3 of these being at various stages of construction and LOI for 2 more being in the offing. LOA/LOIs for 3 of the balance 9 non-coking coal washeries have been issued.

4.5 Future Outlook

CIL has envisaged a coal production of 908.10 Mt in the year 2019-20 with a CAGR of 12.98 %. In 2015-16, the target of coal production was 550.00 Mt with an annualized growth of about 11 %. In the terminal year of XII Plan (2016-17), the envisaged coal production is revised to 597.60 Mt against 615.00 Mt originally projected in XII Plan document.

The capital expenditure for the year 2015-16 has been projected at Rs. 5990.50 crores. In addition there is also an ad-hoc provision of Rs. 500 crores. for acquisition of coal assets abroad and development of coal blocks in Mozambique. In addition, company planned to invest Rs. 4150 crores in various infrastructure projects during 2015-16.

5. POPULATION OF EQUIPMENT

Population of Major Opencast Equipment (Heavy Earth Moving Machinery) as on 1.4.2015 and on 1.4.2014 along with their performance in terms of availability and utilisation expressed as a percentage of CMPDI norm is tabulated below:

8. PROJECT FORMULATION

8.1 Preparation of Reports: As prioritized by subsidiary companies of Coal India Limited, preparation of Project Reports (PR) for new/ expansion/re-organisation mines was carried out by CMPDI during the year 2014-15 for building an additional coal production capacity to the tune of 116 Mty. During the period, a total of 269 reports were prepared including 16 Geological Reports, 30 Project Reports, 174 Other Reports (includes 2 Master Plans of Coalfields and 3 Operational Plans).

Further expert consultancy services were also provided in the field of Environmental Management and Monitoring, Remote Sensing, Energy Audit and Benchmarking (Diesel & Electrical) , Physico-mechanical tests on Rock and Coal Samples, Subsidence Studies, Strata Control, Non-Destructive Testing (NDT), Controlled Blasting & Vibration Studies and Explosive Utilisation, Ventilation/Gas Survey of UG mines, Mining Electronics, Petrography and Cleat Study on coal samples, Coal Core Processing & Analysis, Washability tests, Soil Erosion Study, Slope Stability Study, Effluent/Sewerage Treatment Plants, etc.

Mining Projects: 49 coal mining projects are running behind the schedule due to the delay in acquisition of land, associated R&R issues in addition to the delay in obtaining forestry and environmental clearances. In addition, 33 projects are running behind the schedule due to lack of Railway Infrastructure facilities for coal evacuation, other problems such as delay or discontinuance of work by contractor, non participation in tender, law and order problems etc.

Non Mining Projects

Majority of 13 non mining projects are running behind the schedule due to discontinuance of work by contractor, law and order problem in addition to the delay in acquisition of land and associated problems of rehabilitation and grant of environmental & forest clearances.

8.3 Projects Sanctioned (Costing Rs. 20 Crores & above)

a) No advance action proposal has been sanctioned during the year 2014-15.

b) Projects sanctioned by CIL Board.

7 coal mining projects for an ultimate capacity of 73.42 Mty and a total capital investment of Rs. 7951.17 Crores have been sanctioned by CII Board during the year 2014-15

8.5 Steps taken to Achieve One Billion Coal Production in 2019-20

One Billion Tonne production essentially is a synergic effort with coal bearing states and railways to access the resources and speed up logistics for coal evacuation.

Coal India has decided to put its best foot forward with the help of all concerned agencies and take its production into higher growth trajectory. Contribution from identified projects will be 908 Million Tonnes and identification of projects for the balance quantity is in progress.

Group wise Production from Projects

Existing coal projects are envisaged to contribute about 165 Million Tonnes (MT), projects under implementation are likely to contribute 561 MT. Future projects are planned to produce 182 MT during the year 2019-20.

Contribution from Subsidiaries

Projected contribution from MCL and SECL will be to the tune of 250 Mt and 240 Mt respectively during the year 2019-20. Production contribution from the subsidiary companies during the year 2019 - 20 have been projected as under:-

Eastern Coalfields Limited - 62 MTs;

Bharat Coking Coal Limited - 53 MTs;

Central Coalfields Limited - 133 MTs;

Northern Coalfields Limited - 110 MTs;

Western Coalfields Limited - 60 MTs;

South Eastern Coalfields Limited - 240 MTs;

Mahanadi Coalfields Limited - 250 MTs.

Major Challenges

The dream of providing 1 Billion Tonne of coal to the Nation will be achieved only through the concerted efforts of CIL, Railways and State Governments. Three critical railway lines, mechanization through latest technology, upgrading skills of employees, speedy acquisition of land, expeditious environmental and forest clearances and fast track state level clearances are crucial for realization of 1 Bt coal production by CIL.

Key Strategies

(I) Critical Railway Links - Collaboration with State Govt. & Railways

There are a few coalfields in the country which have huge production potential but are bereft of rail linkages for evacuation of coal produced. Among these, 3 rail lines linked to CCL (Jharkhand), MCL (Odisha) and SECL (Chhattisgarh) are critical and expected to play a key role in evacuation of coal.

To monitor and speed up the commissioning of these three rail links 'Special Purpose Vehicle' (SPVs) have been formed in tripartite partnership among Ministry of Railways, Ministry of Coal and the respective State Governments. IRCON and RITES Limited will have a major role in developing and maintaining following three rail links and other rail dispatch logistics like railway sidings.

(II) Technology Development

(a) Exploration capacity is planned to be augmented with more use of hydrostatic drills, geophysical loggers, 2D/3D Seismic Survey Technology and Optimization of number of coring boreholes based on the complexity of geology of the block.

(b) Introduction of high capacity equipment, Operator Independent Truck Dispatch Systems, Vehicle Tracking System using GPS/ GPRS, CHP and SILOS for faster loading and monitoring using laser scanners have been planned to augment coal production from opencast mines.

(c) Introduction of Continuous Miner Technology on large scale, Long Wall Technology at selected places, Man Riding system in major mines and Use of Tele - monitoring techniques have been envisaged to increase production from underground mines.

(III) International Collaboration - Mine Developers & Operators (MDO)

A Model Contract Agreement has been approved by CIL Board and circulated to subsidiary companies for implementation. This will help infusion of new technology and efficiency in CIL coal mining projects.

(IV) Role of HR

HR division is charting out a plan of recruiting multi-disciplinary professional skill upgradation of existing employees and identifying areas of improvement etc.

Other Improvement Areas

(i) Coal Washing - A step towards quality improvement

To make the product better quality, CIL has decided to bring in consistency in quality by setting up of 15 coal washeries of which 6 are coking coal and 9 non coking coal with a total proposed washing capacity of 112.6 million tonnes / year.

(ii) System Improvements

Introduction of e-procurement of equipment and spares, e-tender of work and services, implementation of Coal Net, establishment of connectivity, revision of guidelines and manuals, use of GPS for monitoring operational efficiency in road transport of coal have been planned to improve the overall system.

9. CONSERVATION OF ENERGY

(i) CIL's subsidiaries have undertaken the following measures, interalia to conserve energy:

- CMPDIL has undertaken energy conservation studies in 2014-15 and conducted Diesel Audit & Benchmarking as well as Electrical Audit & Benchmarking in selected opencast mines situated in different subsidiaries of CIL by BEE accredited Energy Auditors. The study revealed that there is an aggregate saving potential of 18420 kilo litres / year in diesel consumption and 760 lakh units / year in electric power consumption and action has accordingly been taken in line with the recommendations of the above study.

- Project-wise specific consumption of diesel is monitored compared to benchmarking for selected opencast projects (76) of different subsidiaries of CIL.

- Power factor above 95% is maintained during 2014-15 by suitably placing power capacitors.

- Energy efficient LEDs are widely used for better conservation of energy.

- Auto-timer switches for street lights are in use in mine premises, CHPs, residential areas etc. which further adds saving in power consumption.

- Power supply systems have been re-organized in suitable places by laying cables through bore holes in UG mines to reduce power losses.

- Various energy conservation measures like procurement of energy efficient lights and fittings, higher starred rating ACs, installation of energy meters / power factor meters / demand controllers etc. for monitoring and control of energy, elimination or reduction of stage pumping as far as practicable, energy conservation measures in HEMM etc. have been taken and general awareness propagated among all concerned for efficient use of energy.

- Demand side management is done by improving load factor and limiting maximum demand wherever practicable by staggering avoidable load from peak hours to off-peak hours.

(ii) In addition to the above, CIL is also pursuing use of alternative energy sources. Various steps have been taken for utilizing solar power as an alternate source of energy, some of which are as stated below:

- Possible locations have been identified for installation of roof-top solar plants over service building, workshop, hospital, canteen, guest house etc. at different subsidiaries of CIL.

- At present, one 2.016 MWP grid-connective solar power plant has been commissioned at MCL HQ premises on 13.10.2014.

- A roof top solar plant (grid-connective) of 200 kwp capacity has been installed on 01.09.2014 in CMPDIL Campus, Ranchi.

- One roof top grid-connective solar plant of 140 kwp capacity has been installed at CIL's corporate office building at New Town, Rajarhat, Kolkata.

11. CAPITAL STRUCTURE

The authorized share capital of the company as on 31.03.2015 was Rs. 8904.18 crores, distributed between Equity and Non-cumulative redeemable preference shares as under:

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

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

Total Rs. 8904.18 crores

Listing of shares of Coal India Limited in Stock Exchanges:

Pursuant to divestment of 10% of total equity shares held by Hon'ble President of India (Govt. of India), to the public, the shares of Coal India Limited is listed in two major Stock Exchanges of India, viz. Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on and from 4th November, 2010.

During F.Y. 2013-14, Govt. of India had further divested 0.35% of total Equity Shares equivalent to 22037834 number of equity shares by way of placement of such shares in Central Public Sector Exchange Traded Fund (CPSE-ETF).

Further Divestment by Govt. of India through OFS:

Govt. of India further divested 631636440 number of equity shares i.e., 10% of the total share capital, on 30.01.2015 by way of Offer For Sale (OFS) route through Stock Exchanges. Post such divestment, Govt. of India holds 79.65% of the total equity share capital as on 31.03.2015.

13. INTERNATIONAL CO-OPERATION

Coal India is envisaged for foreign collaboration with a view to:-

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

- Exploration and exploitation of Methane from Coal bed, abandoned mine, ventilation air, shale gas, coal gasification etc.

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

The priority areas included acquisition of modern and high productive underground mining technology, introduction of high productive opencast mining technology, working in underground in difficult geological conditions, fire control and mine safety ,coal preparation, application of 3D seismic survey for exploration , extraction of coal bed methane, coal gasification, application of Geographical Information System, satellite surveillance, environmental control, overseas ventures in coal mining.

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

Following are the details of activities that took place with various countries during 2014-15.

FOREIGN COLLABORATION

Indo-US Collaboration:

Status of on-going projects under Indo-US CWG:

a) Development of Coal Preparation Plant Simulator:

The identified US consultant M/s Sharpe International LLC, USA (SI) was awarded the work in October 2009 for development of Coal Preparation Plant Simulator. Total work was split into 18 activities, out of which 11 activities were completed and payment to the tune of 40% value had been released in line with the provision of the contract. Later in October 2013, the SI expressed their inability to complete the work. The US representatives were requested to take up the matter with M/s Sharpe for a meaningful conclusion of the project. The US side has advised to contact Mr. Carl Jacobson in this regard. The issue has been taken up with Mr. Carl Jacobson to obtain his willingness to complete the project in accordance with the existing contract.

b) Cost Effective Technology for Beneficiation and Recovery of Fine Coal:

The US DOE had identified Virginia Tech University (VTU) for establishing an efficient technique for beneficiation & dewatering of Indian coking coal mines through testing of coal samples in lab and pilot plants at VTU for identification of state-of-the-art technologies based on which a demonstration plant was to be installed in Sudamdih washery in BCCL. A joint project proposal was drawn and approved by CIL R&D Board in December'2010. The VTU, however, expressed its inability to sign an international agreement and as such the project could not be started. During the 10th Indo-US CWG meeting in New Delhi on 10th March 2014, the US representatives were requested to take up the matter with VTU for meaningful conclusion of the project. The US side has advised to contact Dr. Roe Hoan Yoon of Virginia Tech for further discussion in this regard. The issue has been taken up with Dr. Roe Hoan Yoon to obtain methodology for execution of the assignment.

New Areas of Collaboration

a) Underground Coal Gasification (UCG): UCG is one of the key areas under Indo-US collaboration. A project brief for capacity building in the field of UCG development has been sent to MoC for consideration under India-US Coal Working Group, for the development of UCG in CIL command area. A demonstration project for commercialization is being contemplated under R&D effort by CMPDI/CIL. The project will be taken up subject to the competent approval.

b) Planning large capacity opencast mines: National Energy Technology Laboratory (NETL), USA has been entrusted with the responsibility for identifying suitable US agencies for cooperation in this area. NETL has communicated to Norwest. As advised by the US side, Norwest Corporation and Art Sullivan, were contacted by email on 8th September 2014. Response from both was received. Preliminary information on the subject has been received from Art Sullivan, and further talks are in progress. CMPDI is in the process of preparing a proposal with Art Sullivan Mine Services, for jointly working on 'Mine Safety, Occupational Health and Risk Management' in large opencast coal mines.

c) Projects on sustainable mine closure activities and mining wasteland to be utilized as a source of livelihood for local community were proposed to be carried out with the help of the US agencies. For this purpose, a technical presentation was made by CMPDI on 10th March, 2014 in Delhi and possible areas of cooperation were discussed. It was advised by the US Side to contact Norwest Corporation & Art Sullivan Mine services for further assistance. Response from Wanda I. Burget, VP, Environmental Services, Norwest Corporation was received vide their e-mail dated 18.09.2014. As desired, details provided to them by e-mail on 31st December 2014. Further, response from them was again received vide e-mail dated 08.01.2015. As desired by Norwest Corp, the area of co-operation were identified and communicated. Norwest Corp has been requested vide our e-mail dated 27.02.2015 for preparing a formal proposal with cost estimates.

Indo-EU Collaboration

Status of ongoing projects

A proposal titled "Introduction of a new underground mining technology at North-East Coalfields in Assam" was put to Indo-EU Working Group on clean coal technology for consideration in 2012. The feasibility study to design a suitable mining technology and operation was awarded to Spanish Consortium led by AITEMIN. AITEMIN has already started their work since December 2013. The members from Spanish Consortium visited Tipong UG mine of NEC, Assam during 10th - 14th February 2014. During the visit, they had detailed discussion with concerned CMPDI & NEC authorities and collected necessary data/information regarding the aforesaid work. The Feasibility Study Report, as reported by AITEMIN, has already been submitted to European Commission on 10th October.'14 according to the contract terms. However, the same is yet to be received at CMPDI.

New Areas of Collaboration

During 8th India-EU CWG meeting held in Chennai from 28th - 29th November'13, a presentation was made by CMPDI on reclamation practices, land management and utilization of mine voids for storage of mine water which is generally of good quality. Technical knowhow from EU was sought to bring back the post-mining land use pattern as existing before the mining and utilization of the same for income generation for the local community. A presentation on the requirement of the technical assistance was made by CMD, CMPDI during the 9th India-EU CWG meeting held in Germany from 10th - 11th September.'14. Further work to be undertaken on collaboration.

Indo-Australian Collaboration

VAM project under NCEF, CMPDI, on behalf of CIL, is contemplating to take up a project on mitigation and utilization of Ventilation Air Methane (VAM) at Moonidih, BCCL, with CSIRO, Australia under

National Clean Energy Fund (NCEF) of Government of India. A project proposal for implementation of the project is under consideration. The project will be taken up subject to competent approval of the Government.

Other activities through international cooperation

a) CMM/CBM Clearinghouse

India CMM/CBM Clearinghouse is a non-profit, non- governmental organization established under the aegis of Ministry of Coal, Govt. of India and United States Environmental Protection Agency (USEPA) with an aim to contribute to the commercial development of CMM/CBM in India.

The clearinghouse was established at CMPDI, Ranchi in November, 2008 with an objective to promote CMM/CBM industry in India. The clearinghouse functions under the aegis of Ministry of Coal (MoC), Govt of India and United States Environmental Protection Agency (USEPA).The term of the Clearinghouse is proposed to be extended for a further period of 3 years upto November, 2018.

b) Research & Development Activities

i) R&D Project on "Green House Gas Recovery from coal mines and coal beds for conversion to Energy":

A multi-organization, multi-nation international collaborative project with 12 participating organizations and 5 countries (India, China, UK, Slovenia, Slovakia) and funded by European Union Research Commission (EURC) is being pursued at Moonidih mine of CIL by CMPDI. The project duration is upto March, 2015.

ii) R&D project on "Assessment of Prospect of shale gas in Gondwana basin with special reference to CIL areas"

For assessing the potentiality of shale gas in Gondwana basin with reference to CIL areas, a project with M/s Advanced Resource International (ARI), USA has been completed in December, 2014. Under R&D effort it is interpreted that Shale horizons in Jharia coalfield and East Bokaro coalfield qualify for Shale gas exploration as deeper zones contain more gas in its pore space because of higher confining pressures. Moreover, the same is supplemented by pyrolysis data of samples.

14. COAL VIDESH DIVISION

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

The prospecting licenses for coal, having numbers. 3450L & 3451L, covering a total area of 224 square kilometres were granted to CIAL, a wholly-owned subsidiary of CIL in Mozambique, in 2009. Various activities related to exploration of the allotted coal blocks undertaken in 2014- 15 are as follows:

- Surveying for delineation of the coal blocks, borehole collars have been completed.

- Completion of Exploration drilling programme in the allocated 2 coal blocks.

- 49,541 Mtrs of exploration drilling has so far been completed, of which 10088 Mtrs and 31,029 Mtrs of drilling in the 1st & 2nd stages was completed in 2013-14 and 8,423.67 Mtrs in 20 boreholes under 3rd stage was completed in 2014-15.

- Work under Geo-physical logging programme for 2,387.02 Mtrs in 4 boreholes has been completed.

- Core sample for a total of 98 boreholes have been tested in various laboratories in India. Analysis results have been received and are being examined.

- The existing exploration licenses for two coal blocks in Mozambique have been extended by Mozambican Government for another 5 years till August 2019.

- Interim Geological Report has been prepared by CMPDIL. The final Geological Report of these two allocated coal blocks in Mozambique is under preparation.

(B) Acquisition of coal assets abroad through global expression of interest

- Pursuant to adoption of the government policy on acquisition of raw material abroad by CPSEs by Board of Directors of CIL, a global Expression of Interest was floated on 27th February 2013 inviting offers from owners of coal assets abroad or their representatives and also from investment bankers for acquiring stakes in coal assets.

- Several proposals have been received till 31st March 2015 in response to the EOI.

- Some of the proposals had been short-listed for in- house due diligence. Technical review in respect of the short-listed proposals were presented to the senior management. CIL Board has desired a report on the regulatory framework in the targeted countries.

- CIL has appointed a legal consultant to advise CIL on the specific aspect of regulations and rules related to investment in the coal mining sector in the targeted countries.CIL has at present has initiated discussions in targeted countries on a possible G2G basis. CIL has been observing the falling international price (FOB) of thermal coal and studying its effect on the valuation model of the prospective coal assets.

(C) Setting up of Apex Planning Organisation (APO) & Apex Training Organisation(ATO)

Setting up of APO & ATO in Mozambique is a project of the Ministry of External Affairs(MEA),Government of India and to be funded by GoI. Coal India Limited was nominated as the nodal agency for the execution of the project.

Cost Estimate for the project updated in 2013 indicated an escalation of cost. Ministry of External Affairs, GoI has indicated that its financial commitment for setting up of APO & ATO in Mozambique would be limited to the initial estimate prepared in 2008. Further it has requested CIL to explore the avenue for funding of the balance amount.

CIL Board has considered the request of MEA and has decided that the issue of funding of the balance amount for the APO & ATO would be addressed once the final results of exploration work in the allocated coal blocks in Mozambique is completed. Meanwhile CIL has suggested that the funding for the balance amount for this project could be arranged from other Indian Public Sector companies having active commercial interest in Mozambique.

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

The Master Plan for dealing with fire, subsidence and rehabilitation in the lease hold of Bharat Coking Coal Limited (BCCL) and Eastern Coalfields Limited ( ECL) was approved on 12th August 2009 by the Govt. of India with an estimated investment of Rs. 7,112.11 crores for Jharia Coalfields and Rs. 2,661.73 crores for Raniganj Coalfields. Implementation period has been delineated as 10 years.

During the FY 2014-15, High Powered Central Committee meeting was held on 26/08/2014 under the chairmanship of the Secretary (Coal),MoC to review the activities of implementation of Master Plan.

Jharia Rehabilitation and Development Authority (JRDA) is the implementing agency for rehabilitation of non- BCCL people under the Master Plan whereas Asansol Durgapur Development Authority (ADDA) a state Govt. organization has been identified as implementing agency for Rehabilitation of Non-ECL houses.

A. Summarized Status of Implementations of Raniganj Master Plan

Demographic Survey work has been completed for all 126 sites. The final list has already been published which contains 44598 households. 43087 numbers of photo identity card (PIC) were distributed out of 44598 households.

Revalidation of land acquisition proposal at Bonjemehari for 1300 Acres of land in Salanpur block and at Gourangdih for 2300 Acres of land in Barabani block is under consideration of West Bengal State Govt.

ECL has given 'No Objection' for rehabilitation in the

available vested land at mouza Namokesia, (31.42 Acres) at Salanpur Block which is non-coal bearing area and mouza Bijoynagar (26 Acres ) at Jamuria Block where coal is available at more than 600 mtrs depth.

It has been informed by ADDA that the above two sites are made available for rehabilitation purpose by State Govt and barbed wire fencing has been started at the site Bijoynagar.

Further ECL has given NOC for vested land in Kulti,Barabani and Jamuria blocks where coal is of very low grade or coal is found at a depth of more than 600 metres. ECL has issued NOC for a total area of 236.42 acres of vested land for rehabilitation purpose to ADDA.

i) Diversion of Railway line from unstable location:

Andal-Sitarampur Railway line of Salanpur area- As regard to diversion of Andal-Sitarampur Railway line of Salanpur Area, the work has been awarded to M/S

RITES for preparation of Feasibility Study Report (FSR) and Detailed Project Report (DPR). Survey work of around 26 km track line has been completed and M/s RITES is finalizing the report in consultation with Railway authority.

ii) Diversion of NH-2 and District Board (DB) Road:

ECL has pointed out that even after repeated communication with National Highway Authority of India (NHAI) at different levels for diversion of National Highway (NH-2), response from NHAI is not very encouraging and the issue has been referred to Ministry of Coal for taking up the issue with Ministry of Surface Transportation.

Detailed Project Report diversion of DB road at Salanpur Area and Satgram area and land acquisition proposals are awaiting State Government's approval.

iii) Diversion of IOCL pipeline:

For diversion of Indian Oil Corporation Limited (IOCL) pipeline National Institute of Rock Mechanics (NIRM),

Bangalore has conducted the survey work to assess the stability of pipeline. NIRM submitted survey report and subsequently NIRM was requested to conduct 2nd tier geophysical survey to assess the stability of 750 metres most vulnerable length of pipeline. NIRM have completed the 2nd phase of survey and submitted their report. NIRM will submit their final report after joint meeting with IOCL.

B. Summarized Status of Implementations of Jharia Master Plan

Out of total of 595 nos. of fire affected / subsidence prone sites / areas required to be surveyed, CIMFR, ISM and Whiz Mantra have completed demographic / socio-economic survey at 569 sites in which 84497 families have been identified. Photo Identity Cards are distributed for 42652 families.

Status of land acquisition by JRDA for rehabilitation sites

About 1105 ha. land (say 2730 Acres) would be required for resettlement of non-BCCL families.

- Proposals for acquisition of 352.27 acres of Raiyati land have been sent to DLAO & 176.23 acres to the Addl. Collector Dhanbad by JRDA.

- Delivery for possession of Raiyati land for 120.82 acres at Lipania and 7.99 acres at Dhokra has been taken over by JRDA from DLAO, Dhanbad on 28.02.13. The physical possession of land is yet to be taken.

- Delivery for possession of Raiyati land for 5.12 acres at Duhatand-, 2.23 acres at Manaitand and 4.76 acres at Dhanbad has been taken over by JRDA from DLAO, Dhanbad on 15.04.13.

- NOC of 86.44 acres of vacant land in Bhuli Township and 849.68 acres of non-coal bearing land in and around Belgoria Township belonging to BCCL has been given by MoC which has been communicated to JRDA along with all the required mouza plans, for developing new Townships by JRDA.

Status of BCCL houses under Master Plan For this purpose, 344 houses & 1152 houses have been built in non-coal bearing zone & Families from fire & subsidence places have been shifted to these houses.

Construction of 4080 triple storied quarters (340 Blocks each of 12 units) is in progress. Construction of 4020 triple storied quarters (335 Blocks each of 12 units) is awarded. Tender for construction of 2248 units (B,C&D type) triple storied quarters and construction of 4008 units triple storied miners quarters with R.C.C. framed structure is in process . Status of Non-BCCL houses (54159 nos.) under Master Plan 2352 houses have been constructed in Belgoria rehabilitation Township ''JhariaVihar" in which 1169 families have shifted till 31.03.2015.

Status of Fire Schemes

Reduction in Fire Area:

- The coal mine fire survey/ study was instituted by BCCL through National Remote Sensing Centre (NRSC), ISRO, Deptt. of Space, Hyderabad in Aug., 2013 for delineation of surface coal fires in Jharia Coalfield. NRSC has submitted their report in April' 2014, in which they have concluded that the present fire area in the coalfield is only 2.18 sq.km. which included both over burden dump fire and active fire. NRSC has deduced these findings from the State of Art, Satellite based technology.

- Further NRSC has conducted delineation of land subsidence in Jharia Coalfield, Jharkhand as R & D component using space based differential interferometric technique. The final report is submitted in Sept'2014.From time series DInSAR observation and field verification, the land subsidence map of Jharia coalfield (JCF)were generated for 2007-2010 time period. 70 areas were detected which are prone to land subsidence/ subsidence affected from time series DInSAR observations due to mining activities, coal fire or by the combination of both. Thus the subsidence map includes areas which are under ongoing subsidence at present & subsided during observation. Out of 70 sites, 27 sites are affected with fire and thus fire induced subsidence.

Disbursement of total fund by CIL for implementation of Master Plan after approval of Master Plan

BCCL till March, 2015 : Rs. 511.85 crores

ECL till March, 2015 : Rs. 160.79 crores.

16. Environmental Management

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

38 environmental clearances for 107.36 Mty capacity were obtained from MoEF for different projects/Group of Mines of CIL during the year 2014-15.

16.2 Pollution Control Measures and their Efficacy

Measures are being taken to ensure that mining and coal beneficiation operations have a minimum impact on the surrounding air quality, water quality, noise level and soil quality, hydro-geology, land use pattern and nearby population.

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

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

16.3 ISO 14001 Certification

The implementation, certification and re-certification of different units of CIL against ISO:14001 (Environmental

Management System) is continuing. As on 31.03.2015, 51 units and two companies (MCL & NCL) are certified under ISO:14001 standard.

With the success of a companywide Integrated Management System (IMS) in MCL & NCL, the implementation of IMS was started for ECL, CCL & BCCL. It is expected that by April, 2016 ECL, BCCL and CCL would be able to get certification for companywide IMS which includes ISO:14001.

16.4 Monitoring of land reclamation of OC mines through remote sensing Satellite surveillance system has been introduced for land reclamation monitoring of all the opencast coal mines for compliance of MoEF stipulations as well as for progressive mine closure monitoring. So far land reclamation monitoring based on high resolution satellite data, have been completed in respect of 50 opencast projects having more than 5 million cum. production capacity (Coal OB) and 36 opencast projects having less than 5 million cum. production capacity (Coal OB).

Vegetation cover mapping of seven coalfields viz. Rajmahal, Raniganj, Ib-Valley, Mand-Raigarh, Sohagpur, Pench- Kanhan and Umrer coalfields based on satellite data have been completed during the year 2014-15 for assessing the regional impact of coal mining on land use / vegetation cover in the span of 3 years for initiating required remedial measures, if any.

16.5 Resettlement & Rehabilitation Policy of CIL

With changing aspirations of Project Affected Persons (PAPs) and for faster acquisition of land, Resettlement & Rehabilitation Policy of CIL was revised in 2012 making it liberal and PAP friendly with more flexibility to the Board of Subsidiary Companies. .

The Policy provides for conducting baseline socio- economic survey to identify PAPs enlisted to receive R&R benefits as well as to formulate Rehabilitation Action Plan (RAP) in consultation with PAPs and State Govts.

The R&R Policy of Coal India Ltd provides for payment of land compensation and solatium, employment or lump sum monetary compensation and annuity, compensation for home-stead, lump sum payment in lieu of alternate house site, subsistence allowance to each displaced family etc.

16.6 Mine Closure Plans

In terms of the revised guidelines issued by Ministry of Coal (MoC) in 2013, CMPDI has prepared 7 mine closure plans for CIL mines during the year. Quick comments on 31 mine closure plans for coal blocks sent by MOC were also prepared and sent to MoC during the year.

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

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

Two CBM blocks, namely Raniganj North CBM block in Raniganj Coalfield and Jharia CBM block in Jharia coalfield, were allotted in 2002 to the consortium of ONGC & CIL for commercial development of CBM. CMPDI is implementing the projects on behalf of CIL. ONGC is the Operator for both the CBM blocks and carrying out the jobs as per contractual agreement with the Govt. of India.

The FDP for both the CBM Blocks were approved by Govt. of India in July 2013. However till date, in the absence of Petroleum Mining Lease (PEL) and Environmental clearance, the actualization of FDPs could not take place.

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

17.2.1 CBM related studies:

CMPDI is carrying out studies related to "Assessment of Coalbed Methane Gas-in-Place Resource of Indian Coalfields/Lignite fields" through boreholes being drilled under promotional exploration (XII Plan period) and Promotional Regional Exploration (PRE) funding. For the plan period, studies have been completed for twenty four (24) boreholes.

During the year 2014-15, following three reports based on CBM related studies have also been submitted:

a) Dipside of Garjanbahal block, IB Valley Coalfield,

b) Bhalumuda block, Mand-Raigarh Coalfield.

c) Mandwa block, Bander Coalfield.

17.2.2 Shale gas related studies:

A study related to 'Assessment of Shale Gas-in-Place Resource of Indian Coalfields/Lignite fields' through boreholes being drilled under promotional exploration (XII Plan period) has been taken up under PRE funding of Ministry of Coal.

Shale gas study has been planned to be carried out in 25 boreholes during XII plan period. Out of these, so far, the study has been completed in respect of 15 boreholes including 5 bore holes taken up for study during 2014-15.

17.3 Commercial development of Coal Mine Methane (CMM)

Mechanism of operationalization of commercial development of CMM within CIL coal mining areas is under consideration at Government level. A formal communication in this regard is awaited. Further activities will be taken up for development and exploitation of CMM after formal communication.

18 COMMERCIAL DEVELOPMENT OF UNDERGROUND COAL GASIFICATION (UCG) WITHIN CIL COMMAND AREA

Mechanism on commercial development of UCG is under consideration at Government level. Global tendering for selection of "Developer for Commercial Development of Underground Coal Gasification (UCG)" in Kaitha Block of Central Coalfields Limited (CCL) and Thesgora "C" Block of Western Coalfields Limited (WCL) is under consideration.

19 R&D AND S&T PROJECTS

19.1 Projects on Coalbed Methane

19.1.1 S&T Project on "CBM Reserve Estimation for Indian coalfields" S&T project on "CBM Reserve Estimation for Indian coalfields" at a cost of Rs. 20.70 Crores has been approved under EoI of Coal S&T project. IIEST/BESU, Shibpur is the principal implementing agency and CMPDI, Ranchi; TCE, Kolkata & NGRI, Hyderabad are sub implementing agencies in this project. The project is of 3 years duration with effect from 24th March, 2014. Work is in progress as per the approved project in South Karanpura Coalfield.

19.1.2 CIL R&D project titled "Studies on shrinkage swelling characteristics of some Indian coals to ascertain recoverability of CBM from deepseated coal resources".

CIL R&D project titled "Studies on shrinkage swelling characteristics of some Indian coal to ascertain recoverability of CBM from deep seated coal resources" has been completed as per schedule. The project commenced on 1st March, 2013 and its completion report submitted on 27th Feb, 2015.

19.1.3 EU funded Research Project titled "Greenhouse Gas Recovery from Coal Mines and unmineable Coal beds and conservation of Energy (GHG2E)"

CMPDI is one of the participating organizations from India in the multi-national/multi-organization (12 partners from 5 countries) collaborative project titled "Greenhouse Gas Recovery from Coal Mines and un-mineable Coal beds and conservation of Energy" which has been approved under the partial funding scheme of European Union Research Commission for a period of 42 months.

Field desorption study in two horizontal in-seam boreholes at Moonidih mine has been completed. CMPDI has completed its job and the integrated report is under finalization at Imperial College of Mining, UK.

19.2 Projects on Shale Gas

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

CIL R&D project titled "Assessment of prospects of shale gas in Gondwana basin with special reference to CIL areas" has been completed. Total Organic Carbon Analyzer and Rock Eval Analyzer are commissioned at CBM Lab, CMPDI, Ranchi. Sub-implementing agency ARI (USA) has made simulation and assessment of Shale gas potentiality in study areas of Jharia and East Bokaro Coalfields. The assessment report was presented in CIL R&D Apex Committee Meeting held on 24th December, 2014.

19.2.2 S&T Project titled "Shale gas potentiality evaluation of Damodar basin of India"

S&T project on "Shale gas potentiality of Damodar basin of India" with the project cost of Rs. 16.87 crore has been approved under S&T plan of Ministry of Coal (MoC). SSRC has approved the additional S&T Grant of Rs. 3.51 crore. The total approved project cost is now Rs. 20.38 crore. The project is under implementation with the objective to evaluate Damodar basin for their shale gas potentiality through integrated geophysical, geological, geo-chemical and petro-physical investigations.

20 GEOLOGICAL EXPLORATION & DRILLING

CMPDI has substantially improved the capacity of drilling during XI & XII plan period. 39 new Mechanical drills & 4 Hi-Tech Hydrostatic drills have been procured since 2008- 09, out of which 10 have been deployed as additional drills and 33 as replacement drills In addition to this, order for 8 Hi-Tech Hydrostatic drills have been placed in 2014-15, out of which, 3 drills have been received and deployed till March'15.

20.1 Drilling Performance in 2014-15

CMPDI deployed its departmental resources for detailed exploration of CIL/Non-CIL blocks whereas State Govts. of MP and Odisha also carried out exploration in CIL blocks only. Besides, eight other contractual agencies have also been engaged for detailed drilling/exploration in CIL/Non- CIL blocks. A total of 140 to 160 drills were deployed in 2014-15, out of which, 57 to 61 were departmental drills.

As against the achievement of 2.09 lakh metre in 2007-08, CMPDI has achieved 6.97 lakh meter in 2013-14 and about 8.29 lakh meter in 2014-15 through departmental resources and outsourcing.

Apart from it, CMPDI continued the technical supervision of Promotional Exploration work undertaken by MECL, and DGM (Nagaland) in Coal Sector on behalf of MoC. A total of 1.40 lakh meter of promotional drilling has been carried out in Coal (0.71 lakh metre) & Lignite (0.69 lakh meter) during 2014-15.

In 2014-15, CMPDI and its contractual agencies took up exploratory drilling in 93 blocks/mines of 22 coalfields situated in 6 States. Out of 93 blocks/mines, 30 were Non- CIL/Captive blocks and 63 CIL blocks/mines. Departmental drills of CMPDI took up exploratory drilling in 57 blocks/ mines whereas contractual agencies drilled in 36 blocks/ mines.

Due to non-availability of forest clearance, work is stopped in 11 blocks. Due to lack of forest clearance and adverse law & order, about 3.67 lakh metre of drilling could not be carried out in departmental and outsourced blocks in 2014- 15.

20.2 Geological Reports:

In 2014-15, 16 Geological Reports were prepared on the basis of detailed exploration conducted in previous years. In addition, 8 Revised Geological Reports were also prepared. The prepared Geological Reports have brought about 3.6 Billion Tonnes of additional coal resources under 'Proved' category.

Under Promotional Exploration Programme, GSI and MECL have submitted 13 Geological Reports on coal blocks estimating about 4.0 Billion Tonnes of coal resources, in 'Indicated' & Inferred categories, above the specified thickness.

20.3 Hydrogeology

Hydro-geological studies of a number of mining projects/ mines were taken up for preparation of 'Groundwater Clearance Application' for CGWA approval and EMP clearance. Hydro geological studies for 31 mining projects/ mines/cluster of mines in ECL, BCCL, CCL, WCL, SECL NCL and MCL were completed during 2014-15.

CMPDI is carrying out groundwater monitoring of MOEF cleared projects viz. 65 mines of WCL area and 15 Cluster of mines in BCCL area. Water level monitoring in other areas of ECL, CCL, SECL, NCL and MCL are also in progress.

20.4 Geophysical survey

Geophysical Logging: During the year 2014-15, a total of 2,34,614 depth meter of geophysical logging has been carried out in CIL and Non-CIL projects with multi parametric geophysical logging equipment.

Surface Geophysical Surveys: A total of 311 line Km of resistivity profiling, 121 nos. of Vertical Electrical Sounding (VES) and 6509 nos. of stations of magnetic surveys has been carried out in 2014-15.

A total of 21 geophysical reports have been submitted during the year 2014-15, including 10 reports on geophysical logging, 2 on resistivity survey, 2 on magnetic survey, 1 on HRSS survey and 6 on ground water study.

21 OUTSIDE-CIL CONSULTANCY SERVICES

During the year 2014-15, 29 consultancy jobs were done by CMPDI for 22 organizations outside CIL. Some of the major clients/organisations are Neyveli Lignite Corporation Limited, MOIL Limited, National Thermal Power Corporation, Steel Authority of India Limited, National Aluminium Company Limited, Damodar Valley Corporation, Chhattisgarh Mineral Development Corporation, Mahan Coal Limited, Karnataka Power Corporation Limited, etc.

Presently, 26 outside consultancy jobs are being executed by CMPDI for 16 organizations.

22 RESEARCH & DEVELOPMENT PROJECTS

22.1 R&D Projects under ST Grant of Ministry of Coal

The R&D activity in Coal sector is administered through an apex body namely, Standing Scientific Research Committee (SSRC) with Secretary (Coal) as its Chairman. The other members of this apex body include Chairman CIL, CMDs of CMPDI, SCCL and NLC, Directors of concerned CSIR laboratories, representatives of Department of S&T, Planning Commission and educational institutions, amongst others.

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

22.2 Physical performance

During 2014-15, 3 projects have been completed by various agencies. The status of Coal S&T projects during 2014-15 is as under:

Following new S&T projects were approved during 2014-15:

1. Sustainable livelihood activities on reclaimed opencast coal mines: a technology enabled integrated approach in Indian coal sector- TERI / TERI University, New Delhi, MCL & CMPDI, Ranchi.

2. Assessment of mine water environment and development of suitable and cost effective mine void aqua eco-system for promoting fish culture in abandoned coal quarries of Coal India Limited- BAU, Ranchi & CMPDI, Ranchi.

3. Assessment of horizontal stress fields in deeper horizons and development of roof hazards maps of coal resources in SCCL command area - SCCL, Kothagudem and NIRM, Kolar.

Following Coal S&T projects were completed during 2014-15:

1. Development of Self Advancing (Mobile) Goaf Edge Supports (SAGES) for depillaring operations in underground coal mines.

2. Development of software for prediction of subsidence by 3D numerical modeling for SCCL mines.

3. Development of customized organic coatings for corrosion protection of special mining equipment at Neyveli Lignite mines.

22.3 Financial Status

Budget provision vis-a-vis actual fund disbursements during the period are given below:

22.4 CIL R&D Projects

For in-house R&D work of CIL, R&D Board headed by Chairman, CIL is also functioning.

So far, 73 projects have been taken up with the funds of CIL R&D Board, out of which 54 projects have been completed till March, 2015.

2. An integrated geo-physical approach for tectonic study in Moher main coal basin of Singrauli coalfield using 3D inverse modeling of Gravity, Magnetic and AMT data-ISM, Dhanbad and CMPDI(Hq), Ranchi.

Following R&D projects were completed during 2014-15:

1. Assessment of prospect of shale gas in Gondwana basin with special reference to CIL areas.

2. Studies on determination of free silica (a-Quartz) content in respirable air borne dust in coal mines and preparation of data bank of free silica and other minerals present in dust as well as in coal.

3. Indigenous development of Integrated Dumper Collision Avoidance system for opencast mines.

4. Studies on shrinkage swelling characteristics of some Indian coals to ascertain recoverability of CBM from deep seated coal and shale resources

5. Research and development on efficient energy management pilot study and action plan.

23. TELECOMMUNICATION SYSTEM

CIL and its subsidiaries are making continuous efforts to up- date communication and IT solutions. To increase transparency and optimal utilization of resources for customer and investor satisfaction, the following key initiatives have been undertaken:

1. GPS based Operator Independent Truck Dispatch System (OITDS) with high speed Data and Voice communication is implemented in all eleven Opencast projects to optimize operation of HEMM to enhance production and productivity of the mine.

2. An ambitious plan to commission GPS/GPRS based Vehicle Tracking System across all major mines of Coal India has been taken up and the same is at different stages of completion at different subsidiaries.

3. E-auction of coal, e-procurement of goods and services are operational through service provider of CIL. e-payment to employees and vendors, e-filing of grievances is in operation to embark upon the business process through IT initiatives.

4. In order to improve coal dispatch, actions have been taken to connect all weighbridges with Central Server of respective subsidiaries.

5. Corporate Mail Messaging System is in place and enhancement of Mail Messaging System for CIL and its subsidiaries for ultimate capacity of 19400 users is under process to provide corporate mail for executives of CIL and subsidiaries.

6. In order to meet the demanding business process, state- of the art IP based EPABX with support of convergent technology for voice and data, Radio communication System and UG communication system at different locations of Coal India and its subsidiary companies are operational.

7. For enhancing the efficiency of official works, mobile telephone connections under CUG scheme to all executives is in place at CIL HQ and all its subsidiaries, except at WCL, where it will be implemented shortly. High speed Data cards and Broadband connections are provided for internet connectivity.

8. The Web Portal of Coal India has been established in English and Hindi with enhanced look and feel encompassing the features like Employee Portal, Tender publication, On-line grievance management, Investor center, Customer corner, Vigilance etc. The portal also facilitates for receiving on-line applications for recruitment of MTs, link to E-procurement and E-auction.

9. Multi Protocol Layered Switching (MPLS) based Video Conferencing between CIL, Subsidiaries, CIL office, Scope Complex and MoC for enhancement of decision making process for better production and productivity has been successfully implemented.

10. At New building of corporate office of Coal India Limited all modern communication facilities have been provided for smooth & efficient functioning.

11. Performance evaluation of all executives is done through web enabled system.

12. Annual Property Return of all executives is recorded through web enabled system.

13. The subsidiaries have Coal Net and other Information systems in place for accounting, finance, payroll, material management and other business functions.

14. Electronic Surveillance through CCTV at Weighbridges has been taken up and is under the process of completion at different subsidiaries.

24. MINES SAFETY

24.1 : Safety Policy of CIL: Safety is always given a prime importance in the operations of CIL as embodied in its mission statement. CIL has formulated a well-defined safety policy for ensuring safety in mines, and implementation of the same is closely monitored at several levels.

1) Operations and systems will be planned and designed to eliminate or materially reduce mining hazards;

2) Implement Statutory Rules and Regulations and strenuous efforts made for achieving superior standards of safety;

3) To bring about improvement in working conditions by suitable changes in technology;

4) Provide material and monetary resources needed for the smooth and efficient execution of safety plans;

5) Deploy safety personnel for accident prevention work;

6) Organize appropriate forums with employees' representatives for joint consultations on safety matters and secure their motivation and commitment in safety management;

7) Prepare annual Safety Plan and long term Safety Plan at the beginning of every calendar year, unit-wise and for the company, for improved safety in operations as per the prevailing geo-mining conditions to prepare the units for onset of monsoon, to fulfill implementation of decisions taken by Committee on Safety in Mines and Safety Conferences and to take measures for overcoming accident proneness as may be reflected through study of accident analysis, keeping priority in sensitive areas of roof-falls, haulage, explosives, machinery etc.

8) Set up a frame work for execution of Safety Policy and Plans through General Managers of Areas, Agents, Managers and other safety personnel of the units;

9) Multi-level monitoring of the implementation of the Safety Plans through Internal Safety Organization at the Company Headquarters and Area Safety Officers at area level;

10) All senior executives at all levels of management will continue to inculcate a safety consciousness and develop involvement in practicing safety towards accident prevention in their functioning;

11) Institute continuous education, training and retraining of all employees with the emphasis laid on development of safety oriented skills;

12) Continue efforts to better living conditions and help all employees both inside and outside the mines.

To implement CIL Safety Policy, the following are provided:

1. Provision of adequate funds.

2. Deployment of adequate manpower exclusively engaged for safety jobs.

3. Support of scientific planning and R&D activities made available through in-house expertise of CMPDIL and in collaboration with other scientific agencies and reputed educational institutes.

4. A well-structured and multi-disciplinary Internal Safety Organization (ISO) established in all the subsidiaries of CIL to monitor implementation of CIL's Safety Policy.

24.2 : Accident Statistics

Accidents statistics is the indicator of safety status. Over the years, safety performance in terms of accidents has improved significantly.

This improvement in safety is attributed to the following factors:

- Collective commitment and synergies shown by the management and employees.

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

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

- Constant supervision and assistance from various quarters.

Salient features of continuous and sustained improvement in CIL's safety performance

1. The 5 yearly average fatalities since the inception of the Company in the year 1975 have shown a consistent reducing trend over a period of time, as is evident from the graph given below

3. The 5 yearly average serious injuries since the inception of the Company upto 2014 has also shown a consistent reducing trend over a period of time as is evident from the graph below:

Note: Accident Statistics are maintained calendar year wise in conformity with DGMS and figures for 2014 are subject to reconciliation with DGMS

4. The 5 yearly average serious injuries has reduced more sharply than fatalities in the same time frame. As serious injuries are the precursor of fatal accidents and mine disaster, it is the indicator of improvement in safety standards in our mines as whole.

Details of Accident Statistics in 2014 vis-a-vis 2013

During 2014, there were 44 fatal accidents and 46 fatalities compared to 55 and 59 respectively, in 2013. Thus, the numbers of fatal accidents and fatalities in 2014, compared to 2013 have reduced by 20% & 22% respectively, which are the lowest since the Company's inception in 1975. The serious accidents and serious injuries in 2014 compared to 2013 have reduced to 183 & 186 from 196 & 200 respectively, which are the lowest since the Company's inception in 1975.

24.3 : Major Activities for Safety & Rescue Division of CIL

1. Inspection of mines to review safety status & follow up action thereof.

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

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

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

5. Framing internal technical circulars / guidelines related to safety issues and monitoring implementation thereof.

6. Maintenance of accidents / major incidents statistics database.

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

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

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

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

24.4 Actions taken for improvement in Safety in Mines undertaken in 2014

Safety Awareness Programme:

- Special safety drives were conducted periodically to assess the level of compliance of safety norms in each mine.

- Annual safety fortnight / week is also conducted every year.

- Constant safety awareness programme is conducted in every mine for increasing safety awareness amongst the grass root level workmen for ensuring compliance of safety norms. This is done with the help of :

a) Safety talks & oaths at the beginning of the shift.

b) Safety slogans and signages at conspicuous places.

c) Circulation of safe operating procedures for every operation and activity to all concerned.

d) Animation films on safety issues.

25. Mines Rescue Services: A well-equipped Rescue Service Organization staffed by rescue personnel trained in modern training galleries and equipped with modern rescue equipment is maintained by the subsidiary companies of CIL. At present there are 6 Rescue Stations, 14 Rescue Rooms-with-Refresher Training facilities and 17 Rescue Rooms in CIL.

26. Safety Monitoring Agencies in CIL: The implementation and monitoring of safety norms stipulated as per statute are being done on constant basis both by the line management as well as by ISO officials.

Apart from the above, there are several other agencies for monitoring safety, these are as under:

At Mine Level

- Workman inspectors: as per Mines Rule-1955

- Safety Committee: constituted as per Mines Rule-1955

At Area Level

- Bipartite/Tripartite Safety Committee Meeting

- Safety Officers' Coordination Meeting

- Bipartite/Tripartite safety Committee Meeting

At Subsidiary HQ Level

- Area Safety Officers' Coordination Meeting

- Inspections by ISO Officials

- CIL Safety Board

At CIL (HQ) / Corporate Level

- CMD's meet

- Director(Tech)'s Coordination Meeting

- National Dust Prevention Committee Meeting

- Standing Committee on Safety in Coal Mines.

At Ministerial / National Level

- National Conference on Safety in mines.

- Various Parliamentary Standing committees.

27. HUMAN RESOURCE DEVELOPMENT

Coal India Ltd has made optimum utilization of resources and technology for enhancement of efficiency and productivity in the Company. CIL has been developing new techniques and opportunities for employee's self-development which in turn proved to be favouring the Company as a whole.

27.1 Overall Performance

Company has achieved MoU targets for HRD for the current year. 71256 employees were given training during 2014-15, out of which 18580 were executives and 52676 non-executives. These trainings included in- house training (training at subsidiary training centres and also at IICM), training in other reputed institutes outside the Company and training abroad.

27.2 Trainings

i) In-house Training

In-house trainings were organized at subsidiary HQs, 27 training centres and also 102 VT centres across Coal India and also at IICM. Respective HRD division of subsidiaries had organized these trainings after assessing the training need in the respective category of employees within the subsidiary. Special attention was given for improving the skill of the employees keeping in mind the need of the industry. Details of in-house trainings imparted were as under:-

ii) Training Outside Company (Within the Country)

Besides in-house training at our training institutes, VT centres and IICM, employees were trained within the country at reputed training institutes, in their respective field of operations and also for supplementing in-house training efforts. Employees from eight subsidiary companies and from CIL (HQ) have been trained in those reputed institutes. The break-up is given below:-

iii) Initiatives

- CIL has been recruiting fresh and dynamic young bloods in different disciplines for the last few years consistently. A special attention has been given to groom these young and energetic persons in their respective fields throughout the year. In addition to the introductory concept on Coal Industry, they have been trained on basic Management Techniques (MAP) and also in their respective Technical Fields (TAP) through regular courses organized at IICM with the reputed faculties. Special attention has also been given in tuning them in their respective specialized working areas by on-the-job training, throughout the year.

- As ManagementTraineesof Excavation and E&M disciplines are posted in coal mines, to provide them proper exposure to mining operations as well as mining equipments (both surface and underground) and to make them conversant with the mining activities, 5 weeks intensive training in different batches for a total of 196 Management Trainees was organized at Indian School of Mines, Dhanbad, the premier mining institute of our country during the year 2014-15.

- 90 General Managers (E8) of different disciplines were given training through IIM, Calcutta on Advance Management for three weeks including overseas learning in Frankfurt School of Finance and Management, Stockholm School of Economics, St. Gallen, Switzerland and Essec Paris, France.

- 160 middle level executives (E6 & E7) were given training on General Management for two weeks, by making a tie up with Administrative College of India (ASCI), Hyderabad.

- 162 executives (E4 & E5) were given training on Executive Development Programme for two weeks, by making a tie up with Indian Institute of Management, Lucknow.

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

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

iv) Training Abroad

CIL has sent 118 employees (117 executives & 1 non-executive) to different countries from all the subsidiary companies and CIL (HQ) for training during the year 2014-15.

27.3 Recruitment

Coal India Limited had inducted fresh talent into the organization at entry level as Management Trainees. 414 Management Trainees have been recruited and inducted in various disciplines including the newly created Community Development discipline through open advertisement. Through campus recruitment 264 Management Trainees have been recruited and joined the Company. CIL has also recruited of 192 Senior Medical Officer.

CIL has started the campus recruitment of Management Trainees in technical disciplines for 485 vacancies and selected 119 candidates till the end of March 2015; selection process is under way to fill up all the vacancies. The candidates selected from campuses would join the Company in July-August, 2015, on completion of their course.

CIL has also concluded selection procedure for recruitment of three principals of nursing schools. CIL has also inducted 9 non-executives into Executive cadre through selection/promotion. In this financial year, 669 Management Trainees joined the Company were given induction training program at IICM and posted in subsidiary companies.

29. INDUSTRIAL RELATIONS AND EMPLOYEES' PARTICIPATION IN MANAGEMENT

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

To provide medical facility to a large number of ex- employees, who had separated from service after rendering prime time of their life to the Company, Contributory Post Retirement Medicare Scheme for non-executives was approved by the company's board.

2. Housing

At the time of Nationalisation, there were only 1,18,366 houses including sub-standard houses. The availability of these houses has increased to 4,01,101 (up to 31.03.2015). The percentage of housing satisfaction has now reached 100%.

3. Water Supply

As against 2.27 Lakhs population having access to potable water at the time of Nationalisation in 1973, currently, a populace of 19.57 Lakh (up to 31.03.2015) has been covered under water supply scheme.

4. 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 80 Hospitals with 5,749 Beds, 405 dispensaries, 592 ambulance and 1,286 doctors including specialists in CIL and its subsidiaries to provide medical services to its employees. Besides 08 Ayurvedic dispensaries are also being run in the Subsidiaries of Coal India Limited to provide indigenous system of treatment to workers.

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

Medical facilities are also provided to the people residing in and around mines premises of the subsidiary companies of CIL.

5. Educational Facilities

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

Coal India Scholarship Scheme (Revised - 2013)

To encourage sons and daughters of employees of Coal India Limited, two types of scholarship namely Merit and General Scholarship, are being provided every year under prescribed terms and conditions.

Scholarship:

The number of students, who have been getting scholarship and number of students from IIT, NIT and Govt. Engineering & Medical Collages whose tuition fee and hostel charges are reimbursed for 2014-15 were as under:.

6. 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.

7. 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, 22 Central co-operatives and 93 Primary co-operative Stores are functioning in the Coalfield areas of CIL. In addition, 158 Co- operative Credit Societies are also functioning in the Coal Companies.

8. Banking Facilities

The Management of Coal Companies are providing infrastructure facilities to the various Nationalised Banks for opening their Branches and Extension Counters in the Coalfields for the benefit of their workers. Workers are educated to draw their salaries through 481 Number of Bank/ Extension Counters and they are also encouraged to practice thrift for the benefit of their families.

9. Sports

Structured sports policy of CIL and its subsidiaries was approved by CIL Board in its 296th meeting held on 25th March, 2013. As per sports policy, Coal India Sports Promotion Association (CISPA) has been registered under West Bengal Societies Registration Act, 1961 on 15th July, 2013. CISPA has undertaken several sports activities at national level according to the objectives of the policy.

10. Welfare, Development and Empowerment of Women

There is a Forum for Women in Public Sector (WIPS) Cell at the Company Headquarters in 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 various activities of WIPS comprising of welfare activities, training & development activities, seminars, cultural programmes, industrial awareness visits and 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 National Conference Forum of WIPS held every year in February at predetermined locations by sponsorship of the event, nomination of maximum number of delegates and also by competing for the BEST ENERPRISE award. In recent years, WIPS cell has done a commendable job in reaching out to the grass-root level women employees, empowering them by suggesting gainful redeployment, training and uplifting their morale by recognizing outstanding achievement, recognizing and honouring the exceptional talent.

11. Special Cash Award

During 2014-15, an amount of Rs. 91,000/- has been provided as Special Cash Award to 15 meritorious children of employees of CIL (Hqrs.), Kolkata Desk Offices of subsidiary companies @ Rs. 7,000/- for 8 (Eight) students who have secured 90% or above marks in the Class-XII Board level examination and @ Rs. 5,000/- for 7(Seven) students who have secured 90% or above marks in the Class-X Board level examination.

12. Recreational facilities

At present there are seven holiday homes in following places.

(a) Puri

(b) Digha

(c) Goa

(d) Manali

(e) Katra

(f) Ajmer

(g) Nainital

(h) Haridwar

Efforts are on to include more holiday homes in the other important tourist spots of the country.

13. CIL Welfare Board Meeting

Coal India Welfare Board is the decision-making forum regarding welfare policies for betterment and improvement of living conditions of employees of the Company.

The members of CIL Welfare Board comprising of Central Trade Union representative and representation of managements meet regularly to discuss on the welfare measures and review the implementation of different welfare schemes. The meeting of the Welfare Board is held regularly.

31. TREE PLANTATION / AFFORESTATION

Coal India Limited envisioned that tree plantation plays an important role in its economic development and environmental balance. Accordingly every year Coal India Limited and its subsidiaries are planting saplings on the available land in its command areas. During 2014-15 Coal India Limited and its subsidiaries have planted 15.74 Lakhs tree saplings over 627.79 Ha. under the plantation / afforestation programme.

Since inception, CIL and its subsidiaries had planted more than 82 million plant saplings over an area of 34944 Ha. upto 31st March, 2015.

32. PROGRESSIVE USE OF HINDI

Keeping with the spirit of the Constitution of India, Coal India Limited continued its efforts to propagate and spread the progressive use of Official Language, Hindi, during the period under review. The management of Coal India Limited is committed to implement the provisions of Official Languages Act, Rules and Regulations. For this purpose periodical meetings and reviews are done regularly by the top officials.

Hindi workshops were organized regularly with a view to create a working atmosphere in Hindi and to remove hesitation of officers & employees to work in Hindi. During the year, large number of employees participated in such workshops.

With a view to create conducive atmosphere for working in Hindi and accelerating the use of Hindi as official language among officials, 'Hindi Fortnight' was observed in all offices of Coal India Ltd. starting from 14 September'2014. During the Hindi Fortnight, various Hindi competitions such as Hindi noting and drafting, Hindi essay writing, Hindi dictation, Hindi translation & Hindi typing were organized where a large numbers of employees participated enthusiastically. The winners were honoured with cash awards & certificates. This creates a consciousness among employees to use Rajbhasha in official Work. Regional Sales Offices situated at different cities were granted sufficient fund as per their size to celebrate Hindi Diwas & Hindi week/fortnight. In order to promote Hindi, a Hasya Kavi Sammelan was organized on 26-12-2014 at Rohini Housing Complex, Ultadanga, Kolkata where a large number of members were present.

With a view to promote Hindi knowledge of employees, 10 sets of 9 selected Hindi magazines are being distributed among different departments/ sections. It has been planned to publish a Hindi house journal from Coal India Ltd.(HQ) during 2015. Help literature and dictionaries were provided to the departments on demand.

Coal India always lays emphasis on imparting training of Hindi Language and Hindi typing & stenography under Hindi teaching scheme of Govt. of India by nominating the employees in Hindi Praveen & Pragya classes. During the last session, CIL has nominated 2 persons in Praveen classes and two persons in Hindi typing & stenography classes.

Various organizations of Govt. of India recognize the best performers by awarding prizes. During the year, Coal India Ltd. received the following Prizes:-

CIL bagged Indira Gandhi Rajbhasha shield: Under the Rajbhasha Award Scheme of the Govt. of India, honourable President of India Shri Pranab Mukherjee awarded Indira Gandhi Rajbhasha Shield to CIL-2nd prize for the best implementation of Official Language Policy of the Union among PSUs situated in region "C" at Rashtrapati Bhawan on the occasion of Hindi Diwas.

CIL bagged 1st Prize of TOLIC(PSUs), Kolkata: Under the Rajbhasha Award Scheme of the Govt. of India, honorable Governor of West Bengal Shri Kesharinath Tripathi awarded TOLIC (PSUs) Kolkata shield - 1st Prize to Coal India Ltd. in the corporate offices category for the best implementation of Official Language Policy of the Union on 8.9.2014.

On 25th July, 2014 under the award scheme of Kendriya Sachivalya Hindi Parishad, Coal India Ltd. was given 'Utkristh Sheild' honour in the sammelan hall of Bhartiya Bhasha Parishad, Kolkata.

CIL was awarded with 'International Academic Rajbhasha Shield' in All India Official Language Conference at Goa organized by Rashtriya Hindi Academy, Rupambra on 27-10-2014.

Inspection of offices is a part of the implementation. Officials of Rajbhasha department, CIL (HQ.) reviewed the status of implementation of Official Language in some of its subordinate offices during the year under review. Suggestions have been given to correct the short-comings seen during the inspection. Some Participants were also nominated in Hindi Workshop/Training camps organized by certain prestigious institutions to promote Hindi.

33. VIGILANCE SET UP

The anti-corruption activities in CIL and its subsidiary companies have been institutionalized by setting up of Vigilance Departments in CIL and its subsidiary companies each of which is headed by a Chief Vigilance Officer (CVO), appointed by the Govt. of India in consultation with Central Vigilance Commission (CVC) on tenure basis, drawn from various government services.

During the year 2014-15, 39 Intensive Examination of Works/

Contracts were undertaken by CIL (HQ) and its subsidiary companies. In addition, 272 Surprise checks were carried out and 176 investigation cases were completed. Besides, 59 departmental inquiries were disposed of which resulted in punitive action against 278 officials. Such examinations/investigations have resulted in initiation of various system improvement measures.

As per the directives of Central Vigilance Commission, Vigilance Awareness Week - 2014 was observed in Coal India Limited, IICM- Ranchi, North Eastern Coalfields-Margherita & Regional Sales Offices across the country from 27.10.2014 to 01.11.2014 emphasizing the theme of "Combating Corruption - Technology as an enabler". As a part of the function, following major activities were organised:

(i) The pledge was taken during the Board Meeting as well as by different Departments.

(ii) Publicity was done through Banners, Posters, Vigilance Related slogans, Message through SMS mass messaging system etc.

(iii) Speech Competition, Quiz Competition, Essay writing competition, feedback from employees, suggestions for System improvement taken.

(iv) A one day orientation programme for Junior Level Managers was organized in two batches.

(v) All Departments under CIL organised a Group discussion on 'IT implementation in organizational activities for transparent and effective corporate governance" with the officials.

(vi) Stake Holders meet was organized and their suggestion for measures to promote good governance and enhance the level of transparency in commercial activities of the 3 organisation were taken. Feedback related to transparency, fairness and customer satisfaction were obtained.

(vii) Open Interactive Session with special emphasis on theme "Combating Corruption - Technology as an enabler", was held on 05.11.2014.

(viii) Vigilance Corner page on CIL website has been introduced having facility for online filing of Vigilance Complaints including PIDPI complaint, online filing and viewing of Annual Property Return etc.

Preventive Vigilance/ System Improvement

1. Improvements in Online Grievance Management System: Several improvements were made in the system creating facilities for filing of complaints on matters relating to subsidiaries, uploading of documents with online complaint, filing of PIDPI complaint where the identity of the complainant is masked etc.

2. Online Bill Tracking System Implementation Action was taken to implement bill tracking system of CMPDIL, designed with customization on coal net, at CIL. The following additional features were suggested for incorporation in the existing module of CMPDIL:-

a. The bill submitted by vendor with bill number to concerned bill processing division may generate a unique code no of CIL mapped with vendor bill no and work order /NIT no and immediately an acknowledgement is generated as a token of receipt and for online tracking of bill by vendor.

b. The bill may appear in the Finance section only after processing of bill from the concerned section.

c. If the bill is rejected and returned back to vendor, the reason for rejecting the bill may be incorporated with date of returning the bill. The same should be mapped with the new bill when submitted afresh next time. No new code should be assigned if the same bill was submitted earlier with same work order no.

d. A report may be generated every week indicating the number of pending bill with the concerned department and delivered to concerned HOD for information through mail/sms.

e. The bill status may be informed to vendor through mail/sms.

f. Customized reports may be generated as details of pending bills with the concerned department, details of rejection and return back department-wise and details of payment released department-wise.

System improvement suggestions:

System improvement suggestions were made in many areas:

a. Implementation of E-procurement

b. DPC for promotion

c. Procurement of explosives

d. Manual for outsourcing of Coal and OB:

e. Purchase Manual

System Improvement Studies - Studies were taken in the following areas

Sl. Subject of Study No.

1 Land Acquisition and R&R issues in Rajmahal

2 Quality issue in Rajmahal mine

3 Measurement of OB and Coal in outsourced patches

4 Recording of performance of tyres through maintenance Logbook as per international practices.

5 CSR Policy of CIL and monitoring of projects.

6 Storage, Accounting and Monitoring of Diesel Usage in NEC

7 Monitoring of coal usage by erstwhile non-core sector units

8 Losses due to excessive production of coal in mines having dispatch constraints.

9 Action on CBI Reports

10 Implementation of Bill passing system at CIL

11 Fixation of normative coal consumption for various non-core sectors as per new coal gradation policy based on GCV system.

12 Amendments in Manuals

13 Quality of Coal- Issues and monitoring

34. PARTICULARS OF EMPLOYEES

No employee received remuneration during 2014-15, either equal to or in excess of the limits prescribed under Rule 5(2) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. Details of Rule 5(1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 on disclosure in the Board Report with reference to remuneration of managerial personnel is annexed to the Report. (Annexure XII).

35. BOARD OF DIRECTORS

Shri S. Narsing Rao continued as Chairman cum Managing Director of the company till 25.06.2014. Dr A. K Dubey, Additional Secretary, MoC took additional charge of CMD from 26.06.2014 and continued till 04.01.2015. Shri S. Bhattacharya has assumed the Charge of Chairman cum Managing Director w.e.f 05.01.2015. Shri R. Mohan Das, Director (P&IR), Shri N. Kumar Director (Technical) and Shri B.K.Saxena, Director (Marketing) were on the Board throughout the year. Shri C.K.Dey has assumed the charge of Director (Finance) from 01.03.2015 on superannuation of Shri A. Chatterjee from 28.02.2015.

Dr A K Dubey, Additional Secretary, MoC and Smt Sujata Prasad, Joint Secretary & Financial Advisor, MoC continued as part-time official Directors on the Board throughout the year.

Shri Sri Prakash, Shri Alok Perti and Shri C. Balakrishnan, Independent Directors, resigned from the Board on 02.09.2014, 08.09.2014 & 09.09.2014 respectively. Appointment of Dr R. N.Trivedi, Dr Noor Mohammad and Prof Indranil Manna, Independent Directors as directors of the company for the balance period of their tenure was placed in the AGM of the company. However shareholders of the company did not approve their appointment and hence they ceased to be directors of the company w.e.f 10.09.2014.

Shri A. N. Sahay, CMD, MCL and Shri A.K.Debnath, CMD, CMPDIL, permanent invitees on CIL Board continued throughout the year. Shri A.K.Maitra has been appointed as permanent invitee on the board with effect from 10.06.2014 and continued till 31.12.2014.

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

In terms of Article 39(j) of the Articles of Association of the Company, one third of retiring Directors are liable to retire by rotation shall retire at the ensuing Annual General Meeting and being eligible they offer themselves for reappointment.

The Board of Directors held 7 meetings during the year 2014-15.

36. COMPOSITION OF AUDIT COMMITTEE

Details are disclosed in the Corporate Governance Report under point number 3.1.

37. COMPOSITION OF CSR COMMITTEE

Details are disclosed in the Corporate Governance Report under point number 3.6.

38. DECLARATION GIVEN BY INDEPENDENT DIRECTORS UNDER SUB-SECTION (6) OF SECTION 149.

The following Independent Directors have given their consent during 2014-15 that they meet the criteria of independence as provided in sub-section (6) of Section 149 of the Companies Act 2013.

i. Dr. R.N. Trivedi.

ii. Shri Alok Perti.

iii. Shri C.Balakrishnan.

iv. Dr Noor Mohammad.

v. Prof Indranil Manna.

vi. Shri Sri Prakash.

39. REAPPOINTMENT OF INDEPENDENT DIRECTORS

No Director was reappointed in terms of section 149(10) of the Companies Act 2013.

40. RECOMMENDATION OF AUDIT COMMITTEE AND ACCEPTANCE BY THE BOARD

All the recommendations made by Audit Committee were accepted by the Board.

41. COMPANY'S POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION INCLUDING CRITERIA FOR DETERMINING QUALIFICATIONS, POSITIVE ATTRIBUTES, INDEPENDENCE OF A DIRECTOR AND OTHER MATTERS PROVIDED UNDER SUB-SECTION (3) OF SECTION 178.

MCA vide notification no. G.S.R. 463(E) dated 5th June'2015 has exempted the above for Government companies.

42. REMUNERATION POLICY OF DIRECTORS, KMPS AND SENIOR MANAGEMENT - SECTION 178(4).

MCA vide notification no. G.S.R. 463(E) dated 5th June'2015 has exempted the above for directors of Government companies.

43. A STATEMENT INDICATING THE MANNER IN WHICH FORMAL ANNUAL EVALUATION HAS BEEN MADE BY THE BOARD OF ITS OWN PERFORMANCE AND THAT OF ITS COMMITTEES AND INDIVIDUAL DIRECTORS.

MCA vide notification no. G.S.R. 463(E) dated 5th June'2015 has exempted the above for Government companies.

44. CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

Related party transactions were made with its subsidiary companies and that all such transactions were exempted under clause 49(VII)(D) and (E) of Listing Agreement being transactions between two government companies and transactions entered between a holding and its wholly owned subsidiaries whose accounts are consolidated with holding company and placed before the shareholders at the General meetings for approval.

45. LOAN, GUARANTEES OR INVESTMENTS BY A COMPANY UNDER SECTION 186 OF THE COMPANIES ACT 2013

Loan, guarantees and investments made by Coal India Limited in terms of section 186 of Companies Act 2013 is enclosed as Annexure XIII.

46. FAMILIARIZATION PROGRAMME OF BOARD MEMBERS

Board members are fully briefed on all business related matters, associated risks and new initiatives etc. of the Company. Company has prepared a draft policy on familiarization programme of Directors. In the absence of independent Directors the policy has not been placed to the Board.

47. SEXUAL HARASSMENT OF WOMEN AT THE WORKPLACE

The Company has in place an Anti-Sexual Harassment Policy in line with the requirements of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints Committee (ICC) has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy.

No sexual harassment complaint was received during the year under review.

48. DIRECTORS' RESPONSIBILITY STATEMENT

In terms of Section 134(3)(c) of the Companies Act, 2013, read with the Significant Accounting Policies at Note 33 and Additional Notes on Accounts at Note 34 forming part of :

1. CIL (Standalone) Accounts

2. CIL (Consolidated) Accounts,

Based on such confirmation obtained from eight Indian subsidiaries of CIL, viz: Eastern Coalfields Limited, Bharat Coking Coal Limited, Central Coalfields Limited, Northern Coalfields Limited, Western Coalfields Limited, Mahanadi Coalfields Limited (Consolidated), South Eastern Coalfields Limited (Consolidated), Central Mine Planning & Design Institute Limited. However, for the overseas subsidiary viz: Coal India Africana Limitada, which is incorporated under the laws of a different sovereign i.e. Republic of Mozambique and for Joint Ventures viz: International Coal Ventures Private Limited and NTPC Urja Private Limited where CIL is not the majority shareholder, such confirmation have not been obtained.

It is confirmed that:

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

b) The Accounting policies have been selected and applied consistently and judgments and estimates that have been made are reasonable and prudent so as to give a true and fair view of state of affairs of the company at the end of the financial year and profit & loss of the company for that period;

c) Proper and sufficient care have been taken for maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) The Annual Accounts have been prepared on a going concern basis;

e) Internal financial controls have been laid down and followed by the company and that such internal financial controls are adequate and operating effectively and;

f) Proper systems have been devised to ensure compliance with the provisions of all applicable laws and such systems are adequate and operating effectively.

49. ACCOUNTS OF THE SUBSIDIARIES

The statement containing the salient features of the financial statement of a company's subsidiaries, associate companies and joint ventures under the first proviso to sub-section (3) of section 129 of Companies Act 2013 is enclosed as AOC 1 in Annexure II. In terms of General Circular No. 2/ 2011 dated 8th Feb 2011 from Ministry of Corporate Affairs, the Annual Accounts of the subsidiary companies shall be made available to the shareholders seeking such information.

50. COST AUDIT

The Cost Audit of your company for the year 2013-14 was conducted by M/s Musib & Co and the Cost audit report was approved by the Board of Directors in their 309th meeting held on 12th August'2014. The Cost Audit Report did not contain any adverse observation/ comment or qualification from the Cost Auditor. The above report was e-filed in XBRL mode in MCA website vide SRN S31270903 on 19th September'2014.

M/s Musib & Co., Practising Cost Accountants was appointed as Cost Auditor for the year 2015-16 with the recommendation of audit Committee & approval of Board in its meeting held on 28th May'2015. E-form CRA 2 was filed on 12th June'2015.

51. SECRETARIAL AUDIT

In pursuance to Section 204 of Companies Act 2013, company had conducted Secretarial Audit for the year 2014-15 by a practicing Company Secretary M/s Vinod Kothari & Co, Practising Company Secretaries. Their appointment was approved by the Board. The report of Secretarial Auditor and the observations of Secretarial Auditor and Management Explanation are enclosed as Annexure VI.

52. RISK MANAGEMENT POLICY

Company has appointed Ernst & Young LLP for preparation of Risk mitigation measures. They have submitted a draft report of the same.

53. WEBLINK

The following policies may be accessed on the Company's website as under:-

1. Corporate Social Responsibility Policy:

https://www.coalindia.in/DesktopModules/DocumentList/ documents/CIL CSR Policy New Companies Act 2013 16062014.pdf

2. Vigil Mechanism: https://www.coalindia.in/home/vigilance. aspx

3. Policy for determining Material Subsidiary:

https://www.coalindia.in/DesktopModules/DocumentList/ documents/POLICY FOR DETERMINING MATERIAL SUBSIDIARIES 21032015.pdf

4. Related Party Transaction Policy: https://www.coalindia. in/DesktopModules/DocumentList/documents/Related Party Transaction Policy' 01122014(1).PDF

54. B.I.F.R AND BRPSE STATUS Eastern Coalfields Limited (ECL)

The networth of the Company became negative as on 31st March, 1999 and the Company was referred to BIFR in November, 1999.

The Company's case was registered as case no.501/2000.

BIFR sanctioned Draft Rehabilitation Scheme in November, 2004 for implementation. As per the scheme, the networth of the Company was slated to become positive in 2008-09 with concessions from CIL. The Cabinet Committee on Economic Affairs had also approved BRPSE recommended Revival Plan of ECL on 6th October, 2006. As per this Scheme, the networth of the Company was slated to become positive in 2009-10.

BIFR in its hearing held on 22.09.2014 gave the following directions:

a. Monitoring Agency (SBI) clarify to the company about the procedure of implementation of the unimplemented part of the scheme and its treatment in the Balance Sheet regarding waiver of unsecured loan and conversion of current account balance into equity share capital.

b. SBI (MA) to submit a report that the implementation of the sanctioned scheme is in consistent in the manner it was sanctioned.

c. The Company to file Auditors certificate stating status of net worth of the company along with its current Balance Sheet immediately after implementation of the un-implemented part of the sanctioned scheme.

d. Thereafter, SBI (MA) will examine the Auditors certificate on its receipt from the Company and submit its recommendation on the status of net worth of the company in order to enable the Board to decide the issue of deregistration of the reference.

Coal India Limited (the Holding company) in its 310th Board Meeting held on 8th November, 2014 has approved to convert unsecured loan of Rs. 519 crore and current account balance of Rs. 1532 crore as on 31st March, 2003 of ECL with CIL aggregating to Rs. 2051 crore to issue fully paid 6% non-convertible, cumulative, redeemable Preference Shares of face value Rs. 1000/- each to CIL. With the approval of its shareholders, ECL Board had approved to issue 2,05,09,700 6% Non-convertible, redeemable, cumulative Preference Shares of Rs. 1000/- each to Coal India Limited.

As per accounts of the company for the period ending 31st December, 2014, the company has reported a positive networth of Rs. 916.87 crore.

In the BIFR hearing held on 11.02.2015, the Bench issued the following order:

"The sick company, M/s Eastern Coalfields Ltd. (BIFR Case No.501/2000) ceases to be a sick industrial company, within the meaning of Section 3(1) (o) of SICA, as its networth has turned positive."

Hence, no subsidiary of CIL is a Sick Company as on 31st March'2015.

55. ACKNOWLEDGEMENT

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

56. ADDENDA

The following are annexed.

i) The comments and review of the Comptroller and Auditor General of India on Standalone Accounts of Coal India Limited. (Annexure I)

ii) Auditors Report on the Standalone Financial Statements for the year ended 31st March, 2015 and Management reply (Annexure I (A)).

iii) Statement pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014) as at 31st March, 2015. (Annexure II)

iv) Foreign Exchange Earning and Outgo under rule 8 of Companies (Accounts) Rules 2014. (Annexure III).

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

vi) Observations of Auditor on Standalone Financial Statements and Management Explanation under Sec 134(3)(f)(i) of Companies Act 2013. (Annexure V).

vii) Secretarial Audit report under section 204 of Companies Act 2013 and Observation of Secretarial Auditor & Management Explanation (Annexure VI).

viii) Performance against MoU for 2014-15 (Annexure VII).

ix) Disclosure as per Section 135 of Companies Act 2013 on Corporate Social Responsibility (Annexure VIII).

x) The extract of the annual return as provided under sub- section (3) of section 92 in Form No. MGT.9.(Annexure IX).

xi) Policy for determining the Material Subsidiary- Clause 49 of Listing agreement (Annexure X).

xii) Significant and Material Orders passed by the regulators or Courts.(Annexure XI).

xiii) Disclosures under Rule 5(1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 (Annexure XII).

xiv) Loan, guarantees or investments made by the company under section 186(4) of the Companies Act 2013. (Annexure XIII)

xv) Corporate Governance Report.(Annexure XIV).

xvi) The comments and review of the Comptroller and Auditor General of India on Consolidated Accounts of Coal India Limited. (Annexure XV).

xvii) Auditors Report on the Consolidated Financial Statements for the year ended 31st March, 2015 and Management reply. [Annexure XV(A)].

xviii) Observations of Auditors on Consolidated Financial Statements and Management Explanation under Sec 134(3) (f)(i) of Companies Act 2013. [Annexure XV(B)].

For and on behalf of the Board of Directors

Sd/-

S. Bhattacharya

22nd July, 2015 Chairman

Kolkata




Mar 31, 2014

Dear Members,

On behalf of the Board of Directors, I have great pleasure in presenting to you, the 40th Annual Report of Coal India Limited (CIL) and Audited Accounts for the year ended 31st March, 2014, together with the reports of Statutory Auditors and Comptroller and Auditor General of India thereon.

Coal India Limited (CIL) is a 'Maharatna' company under the Ministry of Coal, Government of India with headquarters at Kolkata, West Bengal. CIL is the single largest coal producing company in the world and one of the largest corporate employers with a manpower of 3,46,638 (as on 1st April, 2014). CIL operates through 82 mining areas spread over eight provincial states of India. Coal India Limited has 429 mines of which 237 are underground, 166 opencast and 26 mixed mines. CIL further operates 17 coal washeries, (13 coking coal and 4 non-coking coal) and also manages other establishments like workshops, hospitals, and so on. CIL has 27 training Institutes. Indian Institute of Coal Management (IICM) is an excellent training centre operates under CIL and imparts multi disciplinary management development programmes to the executives. Coal India's major consumers are Power and Steel sectors. Others include cement, fertilizer, brick kilns, and a host of other industries.

CIL has eight fully owned Indian subsidiary companies (direct):

Eastern Coalfields Limited (ECL),

Bharat Coking Coal Limited (BCCL),

Central Coalfields Limited (CCL),

Western Coalfields Limited (WCL),

South Eastern Coalfields Limited (SECL),

Northern Coalfields Limited (NCL),

Mahanadi Coalfields Limited (MCL) and

Central Mine Planning & Design Institute Limited (CMPDIL).

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

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

MCL has three subsidiaries, namely MNH Shakti Ltd., MJSJ Coal Ltd. and Mahanadi Basin Power Ltd.

a. MNH Shakti Limited

MNH Shakti Limited has been formed with MCL having 70% stake along with Neyveli Lignite Corporation and Hindalco holding the rest. The coal production is targeted from Talabira OCP with an annual capacity of 20 MT.

b. MJSJ Coal Limited

MJSJ Coal Limited has been formed with MCL having 60% stake along with JSW Steel, Jindal Thermal Power Limited, Jindal Stainless Steel and Shyam Metallics & Energy Limited holding the rest. The coal production is targeted from Gopalprasad OCP with an annual capacity of 15 MT.

c. Mahanadi Basin Power Limited

Mahanadi Basin Power Limited has been formed on 2nd December'2011 as a SPV with 100% shares held by MCL with power generation capacity of 2X800 MW through Pit Head power plant at Basundhara Coalfields.

Joint Venture with OPTCL

MCL has also formed a joint venture Company viz., Neelanchal Power Transmission Company Pvt. Limited (NPTCPL) on 8th January, 2013 with an objective of carrying out power transmission business jointly with M/s OPTCL having an equity share holding of 50:50.

Subsidiaries of SECL

SECL has formed two subsidiary companies viz. M/s Chhattisgarh East Railway Ltd on 12th March'2013 and M/s Chhattisgarh East- West Railway Ltd on 25th March'2013 with 64% holding in each of the subsidiaries for construction of railway lines for evacuation of coal.

1. NOTABLE ACHIEVEMENTS

- For the year 2013-14, the Company has achieved a production of 462.42 MT, removed OB of 806.544 MM3 and achieved an off-take of 471.58 MT., with a growth of 2.26%, 8.01% and 1.38% respectively compared to last year.

- ECL and BCCL not only achieved their AAP targets of coal production, OB removal and off-take but also recorded a

significant growth in coal production and OB removal. SECL has also achieved the AAP target of coal production with 5.11% growth.

- OB removal during this year is noteworthy as it has registered an overall growth of 8.01% over last year. The composite excavation (Coal + OB) in CIL has registered a growth of 6.7% over last year.

- Coal supply to power utilities during the year is 353.83 MT., which is 94.1% of the target and has registered a

growth of about 2.4% compared to last year. This dispatch achievement is 86% against the quantity committed under FSA/MoU to power utilities.

- CIL has paid an interim dividend @ of 290% i.e. Rs. 29/- per share of face value of Rs. 10/-. This is the highest ever dividend paid by the Company till date.

2. FINANCIAL PERFORMANCE

2.1 Financial Results (CIL consolidated)

CIL is one of the largest profit making and tax and dividend paying enterprises. CIL and its subsidiaries have achieved an aggregate pre-tax profit of Rs. 22,879.54 crores for the year 2013-14 against a pre-tax profit of Rs. 24,979.04 crores in the year 2012-13. (Rs. in crores)

Company (CIL subsidiaries/ 2013-14 2012-13 CIL standalone) Profit Profit

ECL (+) 1299.28 (+) 1897.18

BCCL (+) 2089.01 (+) 1709.06

CCL (+) 2525.87 (+) 2683.56

NCL (+) 3355.71 (+) 4420.58

WCL (+) 325.86 (+) 428.87

SECL (consolidated) (+) 7202.40 (+) 6290.37

MCL (consolidated) (+) 5429.08 (+) 6202.48

CMPDIL (+) 34.60 (+) 29.77

CIL (standalone) (+) 15420.47 (+) 10338.03

Sub-Total (+) 37682.28 (+) 33999.90

Less: Dividend from Subsidiaries (-) 14406.82 (-) 9038.08

Total (+) 23275.46 (+) 24961.82

Adjustment for deferred revenue income (+) - (+) 18.34

Adjustment for exchange rate variation on Current Account of overseas subsidiary (+) 0.72 (+) (1.12)

Adjustment for waiver of accrued interest of BCCL (396.64)

Overall Profit as per Consolidated Accounts (+) 22879.54 (+) 24979.04

CIL as a group has achieved post tax profit of Rs. 15,111.67 crores in 2013-14 (excluding share of minority loss of Rs. 0.04 crore; previous year: Nil) as compared to Rs. 17,356.36 crores in 2012-13.

Highlights of performance

The highlights of performance of Coal India Limited including its subsidiaries for the year 2013-14 compared to the previous year are shown in the table below: 2013-14 2012-13

Production of Coal (in million tonnes) 462.42 452.21

Off-take of Coal (in million tonnes) 471.58 465.18

Sales (Gross) (Rs./Crores) 89374.51 88281.32

Capital Employed (Rs./Crores) Note- 1 74891.87 78984.09

Capital Employed (Rs./Crores)- excluding capital work in progress and intangible assets under development. 70386.60 75488.14

Net Worth (Rs./Crores) (as per Accounts) 42391.86 48460.81

Profit Before Tax (Rs./Crores) 22879.54 24979.04

Profit After Tax (Rs./Crores) 15111.67 17356.36

PAT / Capital Employed (in %) 20.18 21.97

Profit before Tax / Net Worth (in %) 53.97 51.54

Profit after Tax / Net Worth (in %) 35.65 35.82

Earning Per Share (Rs.)

(Considering face value of Rs. 10 per share) 23.92 27.63

Dividend per Share (Rs.)

(Considering face value of Rs. 10 per share) 29.00 14.00

Coal Stock (net) (in terms of no. of months net sales) 0.72 0.76

Trade Receivables (net) (in terms of no. of months gross sales) 1.11 1.42

Note-1:

Capital employed = Gross Block of Fixed assets (including capital work in progress and intangible assets under development) less accumulated depreciation plus current assets minus current liabilities.

Transfer to reserves

During the year 2013-14, transfer to various reserves out of CIL (standalone) profits are as under:- Transfer to General Reserves - Rs. 1500.85 crores Transfer to CSR Reserves - Rs. 25.34 crores Transfer to Sustainable Development Reserves - Rs. 10.19 crores

2.2 Dividend Income and Pay Outs (CIL- standalone)

While the financial statements of both CIL standalone and CIL consolidated are presented separately, it is only the CIL (standalone) which is listed and is relevant for dividend payment to its shareholders. The dividend to its shareholders are paid out of CIL's standalone income, the major part of which constitutes the dividend income received by it (CIL - standalone) from its five profit making subsidiaries i.e. CCL, NCL, WCL, SECL and MCL.

The breakup of such dividend (interim + final) received and accounted for during the year from different subsidiaries are given below:- (Rs. in crores) Company (paying subsidiaries) Dividend Income of CIL (standalone)

2013-14 2012-13

CCL 1009.37 1486.74

NCL 2746.12 1662.05

WCL 194.60 184.04

SECL 3444.63 2984.73

MCL 7012.10 2720.52

Total 14406.82 9038.08

During the year, Coal India Limited (standalone) has paid a total dividend (by way of interim dividend) of Rs. 18317.46 crores @ Rs. 29/- per share on 6316364400 number of Equity Shares of Rs. 10/- each fully paid up. Out of the above total dividend, the share of Govt of India was Rs. 16485.71 crores and for other shareholders, Rs. 1831.75 crores. (Earlier year - Govt of India - Rs. 7958.62 crores and other shareholders – Rs. 884.29 crores)

2.3 Observation of the Statutory Auditors

The Statutory Auditors have given their observations on the standalone accounts of the Company for the year ended 31st March'2014. The Auditors' observations in terms of Section 217(3) of the Companies Act'1956 and Management Explanation are enclosed as Annexure IV.

3. COAL MARKETING

3.1 (a) Off-take of Raw Coal

Off-take of raw coal continued to maintain its upward trend and reached 471.58 million tonnes for fiscal ended March 2014, surpassing previous highest figure of 465.18 million tonnes achieved during the last year, i.e., an increase of 1.4 % over the last year. The overall raw coal off-take achieved was 95.8 % of the Annual Action Plan Target.

Company-wise coal off-take:-

The Company-wise target vis-à-vis actual off-take for 2013-14 and 2012-13 are shown below:

Figs. in million tonnes 2013-14 2012-13 Growth over last year

Company AAP Target Achieved % Achieved Achieved Abs. %

ECL 35.20 36.26 103.0 35.84 0.42 1.2

BCCL 33.20 34.20 103.0 33.04 1.16 3.5

CCL 57.20 52.12 91.1 52.89 -0.77 -1.5

NCL 73.50 72.11 98.1 67.29 4.82 7.2

WCL 44.10 39.94 90.6 41.55 -1.61 -3.9

SECL 124.50 122.03 98.0 121.99 0.04 0.03

MCL 123.30 114.34 92.7 111.96 2.38 2.1

NEC 1.00 0.58 58.0 0.62 -0.04 -6.5

CIL 492.00 471.58 95.8 465.18 6.40 1.4

From the above, it may be seen that ECL and BCCL had not only exceeded their targets but also achieved positive growth over last year's off-take. Barring CCL, WCL and NEC all other coal companies registered a positive growth in off-take. Off-take from CCL was affected due to i) strike by contractor's workers, dismantling of Purnadih bridge as per the order of High Court ii) stringent restrictions imposed by State Government to ensure implementation of permissible carrying capacity causing resentment among the contractors and their reluctance to execute the contract iii) Naxalite/Extremists restricted loading from Tori siding for a considerable period of time and iv) frequent Bandhs / local agitation. At WCL, unprecedented heavy rain during monsoon had a devastating effect. Damaged roads and bridges, inundation of open-cast mines, badly affected coal transportation and off-take. Less lifting by MAHAGENCO-Power stations, MPEB-Sarni, HPGCL-Panipat, GEB-Ukai etc. also led to the shortfall.

(b) Sectorwise dispatch of coal & coal products:-

Sector-wise break-up of dispatch of coal and coal products during 2013-14 against target and last year's actuals are given below:-

Figs. in million tonnes

Year 2013-14 2012-13 Growth over Last Year

Sector AAP Target Dispatch % Satn. Actual Abs. %

Power (Util) 376.18 353.83 94.1 345.43 8.40 2.4

Steel * 4.72 3.66 77.5 4.74 -1.08 -22.8

Cement** 7.08 5.45 77.0 6.47 -1.02 -15.8

Fertilizer 2.84 2.29 80.6 2.50 -0.21 -8.4

Others 99.72 106.25 106.5 107.07 -0.82 -0.8

Despatch 490.54 471.48 96.1 466.21 5.27 1.1

* despatch of washed coking coal and raw coking coal for direct feed, blendable coal to steel plants and to external washeries.

** despatch to cement plants excluding cement cpp.

3.2 Dispatch of coal and coal products by various modes:-

Dispatch of coal and coal products during 2013-14 went upto 471.48 million tonnes from 466.21 million tonnes registering a growth of 1.1 %. Overall despatch by non-rail mode had been almost 104% of the target. Growth in despatches via rail mode was 3.3 % whereas overall non-rail mode it went down by 1.4 % compared to previous year. Movement by MGR was at par with last year. The performance could have been even better, but for less movement through MGR at ECL, NCL, MCL and WCL. Road dispatch of CIL was more than the target set.

Dispatch of coal and coal products by various modes for the years 2013-14 and 2012-13 are given below:

(Figs. in million tonnes)

Year 2013-14 2012-13 Growth over Last Year

Mode AAP Target Despatch % Satn. Actual Abs. %

Rail 285.76 259.41 90.8 251.11 8.30 3.3

Road 99.12 112.81 113.8 115.68 -2.87 -2.5

MGR 93.24 88.75 95.2 88.77 -0.02 0.0

Other Modes 12.42 10.51 84.6 10.65 -0.14 -1.3

Overall 490.54 471.48 96.1 466.21 5.27 1.1

3. 3 Wagon Loading

Overall wagon loading materialization was 90.3 % of target. This was achieved due to sustained efforts and regular coordination with railways at different levels. The increase in loading over last year was of 6.12 rakes per day. Company wise performance showed that ECL, NCL and SECL had exceeded last year's level of loading and almost achieved their target. Also, Rake loading performance was more than last year at BCCL, WCL and MCL.

(Figs. in Rake/day)

2013-14 2012-13 Growth over last year

Company AAP Target Achieved % Achieved Achieved Abs. %

ECL 18.22 18.02 98.9 17.78 0.24 1.3

BCCL 24.97 22.16 88.7 20.84 1.32 6.3

CCL 34.95 25.21 72.1 27.26 -2.05 -7.5

NCL 20.98 20.88 99.5 18.67 2.21 11.8

WCL 16.99 15.70 92.4 15.16 0.54 3.6

SECL 35.02 34.25 97.8 32.90 1.35 4.1

MCL 58.69 53.51 91.2 50.83 2.68 5.3

NEC 0.87 0.43 49.4 0.60 -0.17 -28.3

CIL * 210.69 190.16 90.3 184.04 6.12 3.3

Note: Due to revision of wagon loading figures submitted by Railway Board, Kolkata and WCL, Nagpur for the year 2012-13 – the loading is shown as 184.04 rakes/day, instead of 186.4 rakes/day. The difference was caused due to inclusion of non-CIL loading by Railways in the loading figures of WCL which was subsequently corrected by Railways and CIL.

The loading would have been more but for the following reasons:

- Cyclone 'Phailin' followed by devastating rainfall in October' 2013.

- At ECL, regulated lifting by many power utilities like WBPDCL, NTPC, DPL and RGTP-Hissar etc either, due to high stock at TPS end or non-payment of advance coal values as per terms of FSA and frequent railway restrictions due to movement of imported rakes/up-country movement.

- At CCL, Naxalite/Extremists restricted loading from Tori siding for a considerable period of time; frequent bandhs/ local agitation and regulated lifting by HPGCL power stations.

- At NCL, regulated lifting by HPGCL, RRVUNL and Rajghat TPS and non-payment of advance coal values as per terms of FSA by the Power Stations.

- At WCL, less lifting by MAHAGENCO-Power stations, MPEB-Sarni, HPGCL-Panipat, GEB-Ukai etc.

- At SECL, regulated lifting by GEB & RRVUNL.

- At MCL, contractor's workers went on strike at S-3 and S-4 siding of Talcher field during October'13-January'14 and restriction in transportation and loading activity imposed by State Govt of Odisha from 11.00 AM to 3.30 PM during summer due to excessive heat.

3.4 Consumer satisfaction

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

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

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

iv) Surface Miners have been deployed for selective mining at some of the mines to improve the quality of coal. Action is being taken for deployment of more surface miners in other mines where geo-mining condition permits. Already 56 Surface Miners have been deployed in opencast mines and are working satisfactorily.

v) Joint sampling system is in vogue for major coal consuming sectors e.g. power (utilities as well as captive), steel, cement, sponge iron covering more than 95% of total production of CIL. On overall basis, large consumers having annual contracted quantity of 0.4 MT or more and having FSA have been covered under sampling.

vi) From 1st October, 2013, an independent 3rd party sampling and analysis system was introduced for more transparency in the system and for smooth operation in all the areas of subsidiary coal companies of CIL. Subsidiaries have procured 121 Bomb-Calorimeters for more accurate and transparent results of analysis of coal samples. The sampling and analysis are being done in the presence of customers as per provision of FSA at loading end and based on the results the customers are paying the bills of coal as per analyzed grades.

The achievement of grade conformity in respect of sampling and analysis had been to the tune of 95.63% (approx.) in respect of supplies to power sector during the joint sampling period i.e. from April 2013 to September 2013 and to the tune of 92.63% (approx.) during the third party sampling period i.e. from October 2013 to March 2014.

vii) Electronic weighbridges with the facility of electronic printout have been installed at rail loading points to ensure that coal dispatches are made only after proper weighment. For this purpose, subsidiaries have installed 169 weighbridges in the Railway Sidings and 536 weighbridges for weighment of trucks. Subsidiaries have also taken actions for installation of standby weighbridges to ensure 100% weighment.

viii) 25 Auto Mechanical Samplers are also working in subsidiaries for sampling of coal for the bulk consumers eliminating biasness in sampling process. Procurement of further AMSs is under process.

3.5 Marketing of Coal:

(A) Status of implementation of different provisions under New Coal Distribution Policy (NCDP) is as under:

(i) For power stations, commissioned on or before 31.03.2009, 306 million tonnes of coal had been considered to be supplied through legally enforceable Fuel Supply Agreements (FSA) with a trigger level of 90%. The total quantity covered under FSA against the allocation as on March'14 was 306 million tonnes.

Apart from the above, 179 Letter of Assurances has been issued to power plants by subsidiary companies of CIL, as per the recommendations of various SLC (LT) Meetings, about 426.7 million tonnes of coal. Further, as per Presidential Directives dated 16-4-2012, and a revised directive dated 17-7-2013, the list of Power Plants and aggregate capacity were revised. A total 172 Thermal Power Plants (TPPs) were listed with an aggregate capacity of 78555 MW. Till 31.3.2014, 160 FSAs have been signed with Power Plants for an aggregate capacity of 72575 MW. However, out of the said capacity, TPPs having capacity of 56,937 MW have furnished a long term Power Purchase Agreement (PPA) and qualify for coal supply subject to commissioning etc. After a successful meeting with NTPC in July 2013 to resolve the pending FSA issues, signing of FSA with NTPC power plants appeared in the Presidential Directives have completed for an aggregate plant capacity of 13510 MW which included both wholly owned and JV Plants of NTPC.

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

(iii) Out of 1208 valid linked units other than power and steel plants with eligible FSA quantity of 76.24

million tonnes, 875 units had executed FSAs for 58.64 million tonnes. FSAs of existing consumers were signed in 2008 with tenure of 5 years; many of the FSAs had expired and are under renewal process.

(iv) For supply of coal to SME sector, 8 million tonnes was earmarked for allocation to agencies nominated by the State Govt's/ UT's. 17 states / UT's sent their nomination of 24 state agencies for the year 2013- 14 of which 19 state agencies have signed FSAs for 4.08 million tonnes and drawing coal accordingly.

(v) After implementation of NCDP, 418 LOAs were also issued to consumers of sponge iron, CPP and cement as per the recommendations of various SLC (LT) meetings for a quantity of 65.09 million tonnes per annum. Out of these, 312 FSAs have been concluded till date for 40.81 Million tonnes per annum.

(vi) Under Forward E-Auction scheme the quantity allocated was 4.094 million tonnes as against 4.961 million tonnes allocated during the last year. During the period under review, 58.125 million tonnes of coal was allocated under spot e- auction to the successful bidders as against 44.256 million tonnes of coal allocated during the last year. The notional gain through Spot E-auction over and above the notified price was 37.6% as against 49.9% during last year.

(B) Initiative for overcoming logistic bottlenecks:

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

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

(C) Financial Impact of Presidential Directive dated 17th July, 2013:

Due to implementation of Presidential Directive dated 17th July, 2013, no compensation has been paid for short supplies of coal to the new power plants under the terms of FSA during the year. Copy of Presidential Directive is enclosed as Annexure VI.

3.6 Coal Benef ciation

CIL operates 17 coal washeries with a total capacity of 39.40 Mty. Out of these, 13 are coking coal washeries with a total capacity of 24.90 Mty and 4 are non coking coal washeries with a total capacity of 14.50 Mty. CIL had initiated action through global tender to establish 16 coal washeries with a total capacity of 100.60 Mty, out of which 6 are coking coal washeries with a total capacity of 18.60 Mty and 10 are non coking coal washeries with a total capacity of 82.00 Mty. Construction jobs at three washeries are in progress. Letter of Acceptance/Letter of Intimation of two washeries has been issued. Work in other washeries is at different stages of evaluation.

3.7 Stock of Coal.

The stock of coal (net of provisions) at the close of the year 2013-14 was Rs. 4154.61 crores, which was equivalent to 0.72 month value of net sales. The company-wise position of stocks held on 31.03.2014 and on 31.03.2013 is given below:-

(Rs. In Crores) (Rs. In Crores) Net Value of Net Value of Stock in terms of no. of months Net Sales stock as on stock as on Company 31.03.2014 31.03.2013 As on 31.03.14 As on 31.03.13

ECL 298.19 307.98 0.40 0.40

BCCL 618.75 757.05 0.90 1.07

CCL 1067.28 1103.23 1.50 1.55

NCL 484.64 629.32 0.63 0.86

WCL 663.47 584.54 1.20 1.05

SECL 565.61 445.55 0.40 0.33

MCL 418.53 460.38 0.50 0.55

NEC/CIL 38.14 13.11 1.46 0.45

Total 4154.61 4301.16 0.72 0.76

3.8 Trade Receivables

Trade Receivables i.e. net coal sales dues outstanding as on 31.03.2014, after providing Rs. 2589.01 crores (previous year Rs. 1855.65 crores) for bad and doubtful debts, was Rs. 8241.03 crores (previous year Rs. 10480.21 crores) which is equivalent to 1.11 months gross sales of CIL as a whole (previous year 1.42 months). Subsidiary-wise break-up of trade receivables outstanding as on 31.03.2014 as against 31.03.2013 are shown below:- Figures in Rs. Crores

Company Trade Receivables Trade Receivables As on 31.03.2014 As on 31.03.2013

Gross Net of provisions Gross Net of provisions

ECL 2143.71 1720.01 3981.52 3582.13

BCCL 2091.42 1570.15 1934.31 1372.05

CCL 2498.31 1875.72 2080.45 1533.87

NCL 1609.62 955.94 1741.28 1738.21

WCL 548.64 468.93 551.66 471.27

SECL 1579.35 1336.78 1582.46 1350.29

MCL 333.11 298.39 451.93 430.91

NEC/CIL 25.88 15.11 12.25 1.48

Total 10830.04 8241.03 12335.86 10480.21

3.9 Payment of Royalty, Cess, Sales Tax, Stowing Excise Duty, Central Excise Duty, Clean Energy Cess, Entry Tax and Others

During the year 2013-14, CIL and its Subsidiaries paid/adjusted Rs. 19713.52 crores (previous year Rs. 19731.11 crores) towards Royalty Cess, Sales Tax and other levies as detailed below:-

Figures in Rs. Crores

2013-14 2012-13

Royalty 7,559.11 7248.61

Cess & Others 2,202.65 2355.73

Sales Tax / VAT/CST 2,960.08 2908.49

Stowing Excise Duty 464.26 457.54

Central Excise Duty 3,920.25 4227.49

Clean Energy Cess 2,390.86 2319.35

Entry Tax 216.31 213.90

Total 19,713.52 19731.11

4. COAL PRODUCTION

4.1 Raw coal production

Production of raw coal during 2013-14 was 462.422 million tonnes against 452.211 million tonnes produced in 2012-13. The company- wise production is given below:

(Figure in million tonnes)

Coking Non-Coking Total

Company 2013-14 2012-13 2013-14 2012-13 2013-14 2012-13

ECL 0.048 0.043 36.006 33.868 36.054 33.911

BCCL 30.054 26.970 2.560 4.243 32.614 31.213

CCL 18.440 16.156 31.582 31.905 50.022 48.061

NCL 0.000 0.000 68.639 70.021 68.639 70.021

WCL 0.249 0.330 39.480 41.957 39.729 42.287

SECL 0.125 0.157 124.136 118.062 124.261 118.219

MCL 0.000 0.000 110.439 107.894 110.439 107.894

NEC 0.000 0.000 0.664 0.605 0.664 0.605

CIL 48.916 43.656 413.506 408.555 462.422 452.211

4.2 Production from underground and opencast mines.

Coal production from underground mines in 2013-14 was 36.113 million tonnes compared to 37.776 million tonnes in 2012-13. Production from Open cast mines during 2013-14 was 92.19% of total raw coal production. The company-wise production is given as under:

(Figures in million tonnes)

Underground Production Opencast Production Total Production

Company 2013-14 2012-13 2013-14 2012-13 2013-14 2012-13

ECL 6.871 6.849 29.183 27.062 36.054 33.911

BCCL 2.704 3.153 29.910 28.060 32.614 31.213

CCL 0.956 1.024 49.066 47.037 50.022 48.061

NCL 0.000 0.000 68.639 70.021 68.639 70.021

WCL 7.730 8.200 31.999 34.087 39.729 42.287

SECL 16.416 16.869 107.845 101.350 124.261 118.219

MCL 1.433 1.678 109.006 106.216 110.439 107.894

NEC 0.003 0.003 0.661 0.602 0.664 0.605

CIL 36.113 37.776 426.309 414.435 462.422 452.211

4.3 Hard Coke and Washed Coal (Coking) Production

Subsidiary-wise production of Hard Coke and Washed Coal (Coking) was as under:

(Figures in Lakh Tonnes)

Hard Coke Washed Coal (Coking)

Company 2013-14 2012-13 2013-14 2012-13

ECL - - - -

BCCL 0.00 0.00 9.53 13.29

CCL - - 13.58 12.39

NCL - - - -

WCL - - 1.20 1.44

SECL - - - -

MCL - - - -

NEC - - - -

CIL 0.00 0.00 24.31 27.12

4.4 Overburden Removal

Overburden Removal during 2013-14 was 806.544 million cubic metres against 746.702 million cubic metres achieved in 2012-13 recording a splendid growth of 8.01%. The Company-wise details of overburden removal is shown below:

(Figures in million cubic metres)

Company 2013-14 2012-13

ECL 85.756 76.448

BCCL 85.419 84.259

CCL 59.022 63.308

NCL 208.787 195.706

WCL 120.076 113.685

SECL 144.875 118.202

MCL 96.028 90.361

NEC 6.581 4.733

CIL 806.544 746.702

4.5 Future Outlook

In the terminal year (2016-17), as per XII Plan document, growth rate of demand for coal in India has been envisaged at 7.09% (980.50 Mt). In 2014-15, demand for coal in India has been estimated to the tune of 787.03 Mt against 769.69 Mt in 2013-14.

In the TY of XII Plan (2016-17), the envisaged indigenous coal production is 795.00 Mt. Out of this, share of CIL is 615 Mt (77 % share of total production)with an envisaged growth rate of 7.12 %. Out of this, 30.20 % is to come from existing mines, 54.2 % from projects under implementation and 15.6% from new projects to be taken up. On date, 148 projects are under various stages of implementation. Further, 126 new projects are also identified to be taken up in future. Coal production target of CIL in 2014-15 is 507 Mt with a growth of 9.61 % over last year's achievement.

CIL has proposed a capital outlay of Rs. 25, 400 crores in XII Plan plus an ad-hoc provision of Rs. 35,000 crores for acquisition of assets abroad and development of the acquired coal blocks in Mozambique. The capital expenditure for the year 2014-15 has been envisaged at Rs. 5225.00 crores plus additional ad-hoc provision of Rs. 4500 crores for acquisition of coal assets abroad and development of coal blocks in Mozambique.

Railway infrastructure Projects: In order to achieve the planned growth in production and evacuation in future, CIL has undertaken the following major Railway Infrastructure Projects to be executed by Indian Railways Authority:

1. Tori-Shivpur-Khatotia new BG Line with a length of about 93.45 Km for North Karanpura Coalfields of Central Coalfields Limited, Ranchi, Jharkhand. The work is under execution in Tori-Shivpur Section by East Central Railway, Patna.

2. Jharsuguda –Barpalli Railway Infrastructure Project with a length of about 52.4 Km for IB Coalfields of Mahanadi Coalfields Limited, Sambalpur, Odisha. The work is under execution by South Eastern Railways, Kolkata.

3. To cater to evacuation of coal from Mand-Raigarh and Korba-Gevra Coalfields of SECL, following 2 Railway Corridors have been identified for construction:

(a) East Corridor (Bhupdeopur-Gharghoda-Dharamjaiigarh upto Korba with a spur from Gharghoda to Donga Mahua to connect mines of Gare-Pelma Block) with a length of about 180 km.

(b) East-West Corridor (Gevra Road via Dipka, Kathghora, Sindurgarh, Pasan) with a length of about 122 Km

An MoU has been signed among SECL, IRCON International Limited and the Government of Chhattisgarh (GoCG) for Sl.No.3 with the equity share holding of 64%, 26% and 10% respectively.

5. POPULATION OF EQUIPMENT

The population of Major Opencast Equipment (Heavy Earth Moving Machinery) as on 1.4.2014 and on 1.4.2013 alongwith their performance in terms of availability and utilisation expressed as percentage of CMPDIL norm is tabulated below:

No. of Equipment Indicated as % of CMPDIL Norm

Availability Utilisation As on As on Equipment 1.4.2014 1.4.2013 2013-14 2012-13 2013-14 2012-13

Dragline 36 39 97 90 80 77

Shovel 732 715 91 88 78 77

Dumper 2977 3109 102 101 70 70

Dozer 977 972 91 91 58 58

Drill 693 707 104 99 61 65

6. CAPACITY UTILISATION

SYSTEM CAPACITY UTILIZATION

The overall system capacity utilization of CIL as a whole for the year 2013-14 has worked out to be 84.75 %. It was 82.99 % during 2012- 13. The subsidiary-wise details in terms of percentage vis-a-vis the preceding year are as under:

(Unit %)

Company 2013-14 2012-13

ECL 130.78 118.97

BCCL 93.61 79.29

CCL 84.66 84.89

NCL 75.54 76.69

WCL 92.47 93.41

SECL 88.49 80.52

MCL 68.60 75.61

NEC 82.38 66.34

Total CIL 84.75 82.99

7. PRODUCTIVITY: OUTPUT PER MANSHIFT (OMS)

Output per manshift (OMS) during 2013-14 improved to 5.62 tonnes from 5.32 tonnes per manshift of previous year. The company-wise position is given in the following table:

(Figures in tonnes)

Underground OMS Opencast OMS Overall OMS

Company 2013-14 2012-13 2013-14 2012-13 2013-14 2012-13

ECL 0.48 0.46 10.96 10.17 2.13 1.94

BCCL 0.31 0.35 9.38 8.31 2.74 2.50

CCL 0.33 0.33 6.26 6.09 4.64 4.42

NCL 0.00 0.00 13.78 13.65 13.78 13.65

WCL 1.07 1.10 5.14 5.03 2.96 2.97

SECL 1.35 1.37 21.45 19.26 7.23 6.72

MCL 0.84 0.97 22.16 21.34 16.69 16.07

NEC 0.01 0.01 4.33 3.77 1.54 1.30

CIL 0.76 0.77 12.18 11.48 5.62 5.32

8 PROJECT FORMULATION

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

Other important jobs undertaken during the year:

- Master plan of coalfields

- Preparation and evaluation of RFQ (Request for Qualification) and RFP (Request for Proposal) documents and customization of bid documents for coal washeries

- Operational plans for large OC mines

- Environment Management Plan (EMP)

- Mining Plans and Mine Closure Plans of OC and UG mines

- Mine capacity assessment of underground and opencast mines of CIL.

- Various technical studies relating to operation of opencast and underground mines.

- Performance analysis of HEMM operating in OC mines of CIL.

- Preparation of Standard Bid Documents for procurement of Continuous Miner in underground mines of CIL.

- Preparation of Model Bid Document and Conceptual Report for setting up of FBC based thermal power plants using washery rejects.

- Detailed design and drawings, NIT, tender scrutiny, etc.

Expert Consultancy Services: During the year 2013-2014, expert consultancy services were also provided to subsidiary companies of Coal India Limited in the field of Environmental Management and Monitoring, Remote Sensing, Energy Audit (Diesel and Electrical), Benchmarking of Diesel and Electrical Consumption and Fixation of Diesel and Electrical Consumption Norms of Opencast and Underground mines, Physico-mechanical tests on Rock and Coal Samples, Subsidence Studies, Strata Control, Non-Destructive Testing (NDT), Controlled Blasting and Vibration Studies and Explosive Utilization, Ventilation/Gas Survey of UG mines, Mining Electronics, Petrography and Cleat Study on coal samples, Coal Core Processing and Analysis, Washability tests, OBR Survey, Man Riding System, Soil Erosion Study, Slope Stability Study, Effl uent/Sewerage Treatment Plants, Assessment of Normative Cost of sand stowing for stowing mines, etc.

8.2 Project Implementation

a) The following 4 coal projects, each costing Rs. 20 crores and above, with an ultimate capacity of 11.00 Mty and completion cost of Rs. 653.97 crores, have been completed during the year 2013-14:-

Sanctioned Completion Cost Sl No Company Name of Projects Type Capacity (Mty) (Rs.crores)

1. NCL Bina Expn OC 1.50(Incr) 67.53

2. MCL Lajkura Expn OC 2.50 60.77

3. MCL Samaleswari OC 5.00 382.10

4. CCL Urimari EPR OC 2.00 143.57

TOTAL 11.00 653.97

b) 1 Coal project, costing Rs. 20 crores and above, with an ultimate capacity of 1.30 MTY and sanctioned capital of Rs. 40.16 crores have started contributing production during the year 2013-14 :-



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

1 CCL Kuju Schm. OC 1.30 40.16

Status of Ongoing Projects:

Presently, there are 118 mining (excluding 13 projects of WCL approved subject to finalization of Coal Supply Agreement on cost plus basis.) and 25 non-mining projects, costing Rs. 20 crores and above, under implementation.

Out of 118 mining projects, 31 projects are running on schedule and 87 are delayed. Out of 25 non-mining projects, 21 are on schedule and 4 are delayed.

Status of ongoing projects costing Rs. 20 crores. and above:-

Projects Total projects Projects on schedule Projects delayed

Mining 118 31 87

Non Mining 25 21 4

Total 143 52 91

Reasons for the delay Mining Projects:

SL REASONS FOR THE DELAY NO OF PROJECTS

1 DELAY IN LAND ACQUISITION + FC + R&R 56

2 MISCELLANEOUS 31

TOTAL 87

Non – mining Projects:

Out of 4 delayed non-mining projects, all are delayed due to land and rehabilitation problems including forest problem.

8.3 Projects Sanctioned (Costing Rs. 20 crores & above) :

(a) No Advance Action proposal has been sanctioned during 2013-14.

(b) CIL Board has sanctioned 3 mining projects during 2013-14.

Sanc. Capacity Sanc. Capital Sl No Project Sub Date of Approval (MTY) (Rs. crores)

50.00 7612.33

1. Kusmunda Expn OCP SECL 03.08.2013 (35 Incr) (Incr 6912.33)

2. Chhal Expn OCP SECL 16.12.2013 6.00 2127.59

3. North Tisra South Tisra OC BCCL 12.02.2014 6.00 555.52

Total 62.00 10295.44

(c) No Non-mining project has been approved during the year 2013-14 by CIL.

(d) The Subsidiary Company Boards have sanctioned 4 mining projects, costing Rs. 20 crores and above, for a total capacity of 6 Mty and sanctioned capital of Rs. 743.32 crores under their delegated powers during the year 2013-14:

Sanc Capacity Sanc Capital

Sl No Project Sub Date of Approval (MTY) (Rs. crores)

1. Sayal 'D' OCP CCL 10.10.2013 1.00 48.53

2. Jeevandhara OC CCL 19.11.2013 1.00 282.20

3. Mugoli& Nirguda Ext OC WCL 06.02.2014 3.00 372.52

4. Hindustan Lalpeth WCL 06.02.2014 1.00 40.07

Total 6.00 743.32

(e) The Subsidiary Boards have sanctioned following 3 Non-mining Projects, costing Rs. 20 crores and above, under their delegated powers during 2013-14:-

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

1. MCL Lingraj Silo Loading arrangement 227.00 16.05.14

2. MCL Expn of BOCM (BOCM 6 & 7) 27.15 17.06.14

3. MCL Concrete pavement in coal transportation road of Kaniha OC 26.91 24.12.13

8.4 Revised Project /Revised Cost Estimates

(a) No RPR/RCE was sanctioned by CIL during 2013-14.

(b) Following RPRs/RCEs sanctioned by the Subsidiary Company Boards during 2013-14.

Capital Sl Cos Projects approved Capacity (Mty) (Rs. Crores)

1. MCL Lajkura Expn RCE OC 1.50 60.77

9. CONSERVATION OF ENERGY

CIL's subsidiaries have undertaken following measures, interalia to conserve energy :

- Power capacitors are added / replaced wherever necessary to improve power factor on the basis of regular monitoring and assessment.

- Energy Audit and Benchmarking are conducted for selected opencast / underground mines by CMPDIL on regular basis.

- Energy efficient lamps are widely used in places of new installations. Existing energy inefficient lamps are gradually replaced with energy efficient lamps.

- Time switches are installed at various places for automatic control of street lights.

- Power supply systems are re-organized wherever necessary for efficient use of energy.

- Re-organization of pumping including pipeline is done at places, as deemed necessary, to avoid stage pumping thereby improving efficient use of energy.

- Various energy conservation measures are taken and general awareness is propagated among all concerned for efficient use of energy.

- Demand side management is done by improving load factor and limiting maximum demand wherever practicable by staggering aidable load from peak hours to off-peak hours.

- CIL coordinates with the subsidiaries and follows up on their activities for energy conservation.

- Performances of subsidiaries on energy conservation are discussed during the co-ordination meeting.

- Project-wise specific consumption of diesel is monitored and the same is compared with benchmark.

- A CIL R&D endeavour under the project entitled 'Green House Gas recovery from coal mines and coal beds for conversion of energy (GHG2E)' was taken up and the main objective of the project study is to develop capacity building in the new area of Coal Mine Methane (CMM) drainage and CO2 has been completed.

- A project entitled 'Research and Development on efficient energy management pilot study and action plan' was taken up with CIL R&D fund to identify feasible new technologies and functionalities for improvement in energy management in mines through key performance indicators and adoption of renewable energy like possibility of usage of solar photovoltaic cells for the existing and future buildings under green infrastructure concept.

10. CAPITAL EXPENDITURE

Overall capital expenditure during 2013-14 was Rs. 4329.86 crores as against Rs. 2915.23 crores in previous year, the subsidiary-wise details of which are given below:-

Figures in Rs. crores

2013-14 2012-13

Company (BE) Actual (BE) Actual

ECL 525.00 408.87 450.00 202.94

BCCL 850.00 504.24 300.00 266.15

CCL 500.00 657.18 425.00 397.42

NCL 800.00 301.76 850.00 444.19

WCL 450.00 287.66 350.00 264.05

SECL 850.00 956.21 900.00 628.85

MCL 500.00 876.84 500.00 531.56

CMPDIL 30.00 20.26 30.00 6.94

NEC/CIL/Others* 495.00 316.84 470.00 173.13

Total 5000.00 4329.86 4275.00 2915.23

* Include Master Action Plan.

Capital Expenditure incurred during 2013-14 is about 86.60% of BE (68.19% in 2012-13).

11. CAPITAL STRUCTURE

The authorized share capital of the Company as on 31.03.2014 was Rs. 8904.18 crores, distributed between Equity and Non-cumulative redeemable preference shares as under:

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

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

Total Rs. 8904.18 crores

Listing of shares of Coal India Limited in Stock Exchanges:

Pursuant to divestment of 10% of total equity shares held by Hon'ble President of India (Govt. of India), to the public, the shares of Coal India Limited are listed in two major Stock Exchanges of India, viz. Bombay Stock Exchange and National Stock Exchange on 4th November, 2010.

Further divestment by Govt. of India to CPSE – ETF:

During FY 2013-14, Govt. of India has further divested 0.35% of total equity shares equivalent to 2,20,37,834 number of equity shares by way of placement of such shares in Central Public Sector Exchange Traded Fund (CPSE-ETF) and post such divestment, the Govt. of India holds 89.65% of the total equity share capital as on 31.03.2014.

Pursuant to above the shareholding pattern in CIL stood as follows:

As on 31.03.2014 As on 31.03.2013

Shareholding Share Capital Shareholding Share Capital Pattern (%) (Rs. crores) Pattern (%) (Rs. crores)

Government of India 89.65 5662.69 90.00 5684.72

CPSE - ETF 0.35 22.03 - -

Other Investors 10.00 631.64 10.00 631.64

Total 100.00 6316.36 100.00 6316.36

12. BORROWINGS

Aggregate borrowings of CIL have decreased to Rs. 177.82 crores in 2013-14 from Rs. 1305.30 crores in 2012-13, as detailed below.

Figures in Rs. crores

Particulars 2013-14 2012-13

Foreign Loans including deferred credits

IBRD/JBIC* - 1136.23

EDC Canada 168.07 160.35

Liebherr France SA., France 9.75 8.72

TOTAL 177.82 1305.30

* The foreign currency loans drawn from JBIC Bank (denominated in Japanese Yen) and IBRD Bank (denominated in US Dollar) for implementation of coal sector rehabilitation project in various subsidiaries has been prepaid during the year on 05.11.2013 and 06.12.2013 respectively.

The debt servicing has been duly met in all the components of the loans / deferred credits.

13. INTERNATIONAL CO-OPERATION International Co-operation

Coal India is envisaged for foreign collaboration with a view to:-

¦ Bring in proven and advanced technologies and management skills for exploiting UG and OC mines and coal preparation

¦ Exploration and exploitation of Methane from Coal bed, Abandoned mine, Ventilation air, Shale gas, Coal gasification, etc.

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

The priority areas include acquisition of modern and high productive underground mining technology, introduction of high productive opencast mining technology, working underground in difficult geological conditions, fire control and mine safety, coal preparation, application of 3D seismic survey for exploration, extraction of Coal Bed Methane, Coal Gasification, application of Geographical Information System, Satellite Surveillance, environmental control, overseas ventures in coal mining

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

Following are the details of activities that took place with various countries during 2013-14

Indo-US Collaboration

The 10th Indo-US Coal Working Group meeting was held on 10th March, 2014 in New Delhi. The status of ongoing projects under ndo-US CWG was reviewed. Presentations were made by CMPDI/ CIL on new areas of collaboration

The status of ongoing projects under Indo-US CWG is as follows:-

a) Development of Coal Preparation Plant Simulator:

The identified US consultant M/s Sharpe International LLC, USA (SI) was awarded the work in October 2009 for development of a Coal Preparation Plant Simulator. Total work was split into 18 activities out of which 11 activities were completed. Later, SI expressed in October 2013 their inability to complete the work. US representatives were requested to take up the matter with the M/s Sharpe for a meaningful conclusion of the project.

b) Cost Effective Technology for Beneficiation and Recovery of Fine Coal :

US DOE had identified Virginia Tech University (VTU) for establishing an efficient technique for beneficiation and dewatering of Indian coking coal fines through a demonstration plant based on the technologies identified after pilot scale tests of Indian coking coal samples on different state-of-the- art equipment at VTU. A joint project proposal was drawn and approved by CIL R&D Board in Dec. 2010. The VTU, however, expressed its inability to sign an international agreement and as such the project could not be started. US representatives were requested to apprise different available technologies for fine coal beneficiation and recovery so that different projects can be taken up based on merit.

c) Underground Coal Gasification (UCG):

UCG, which may offer solution to untapped isolated coal deposits lying at depths, is one of the key areas under Indo-US collaboration. In order to promote R&D efforts for potential application of technological advances and to establish these in the Indian geo- mining condition, a brief proposal for capacity building has been sent by MoC to Lead Coordinator, India-US Coal Working Group, USA. It was proposed that the proposal would be taken up by CMPDI, with the budget available under R&D fund of Coal India Limited. UC-CIEE can be the co-implementing agency from the US side.

New Areas of Collaboration:

a) Advanced Dry Coal Cleaning technologies

b) 3 D Seismic Surveys

c) Planning Large Capacity Opencast Mines

d) Mine Rehabilitation and Reclamation

Indo-EU Collaboration

The 8th meeting of Indo-EU working group on Coal and Clean Coal Technologies was held on 28-29 Nov, 2013 at Chennai. One of the

key areas for cooperation is the development and deployment of advanced coal mining. The aim of advanced coal technologies is to increase the efficiency and safety in coal production and to mitigate environmental and social impacts. Co-operation of EU was sought for various aspects related to coal mining like steeply dipping seated coal seams as under:

- Innovative mining technologies and environment friendly solutions.

- Development of technology for deep coal mines and possible solutions for Indian conditions.

- Technological improvements to manage these risks, especially on the prevention, and include rock stress monitoring system, mine atmosphere control, and methane drainage technique, personnel tracking system and staff training for emergency situations.

- The need to modernize, develop and adopt technologies for high capacity and productive underground coal mining from deep and thick coal seams.

- Underground coal mining technologies for mass production for steep and gassy coal seams.

- Results of feasibility study to design a mining methodology for NEC coalfields.

Both sides had agreed to hold the next meeting of the Coal Working Group in September/October, 2014 in one of the EU coal regions.

A proposal titled 'Introduction of a new underground mining technology at North-East Coalfields in Assam, India' was placed before the Indo-EU Working Group on clean coal technology for consideration in 2012. The feasibility study to design a suitable mining technology and operation was awarded to a Spanish Consortium led by AITEMIN. The members from the Spanish Consortium visited from 10-14 Feb, 2014 for preliminary discussions and data collection. The report is likely to be submitted by August/September, 2014.

Indo-Australian Collaboration

CMPDI and CSIRO (Commonwealth Scientific and Industrial Research Organisation), Australia entered into an MoU on 12th June, 2013 to encourage programmes of exchange and collaboration in areas of mutual interest.

In pursuant to the directive of the Ministry of Coal, CMPDI on behalf of CIL, is contemplating to take up a project on mitigation and utilization of Ventilation Air Methane (VAM) at Moonidih, BCCL, with CSIRO, Australia under National Clean Energy Fund (NCEF) of Government of India. A project proposal for implementation of project is under preparation.

Other activities through international cooperation

CMM/CBM Clearinghouse

With an objective of supporting development of CBM/CMM resources, a Govt. level understanding was reached between the Ministry of Coal (MoC), Govt. of India and United States Environmental Protection Agency (USEPA) on establishment of CMM/CBM Clearinghouse. The clearinghouse was established at CMPDI, Ranchi in November, 2008 with an objective to promote CBM/CMM industry in India. The term of the Clearinghouse has been extended for a further period of 3 years up to November, 2015, consequent to the approval of MoC and USEPA has also given its consent for extension of terms of the Clearinghouse. An International workshop on "Development of coal based non- conventional energy resources in India" has been organized under the CMM/CBM Clearinghouse and CMPDI at Ranchi in November, 2014.

14. WORLD BANK FINANCED PROJECTS FOR 2013-14

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

During this year, with the repayment of scheduled instalment and prepayment of balance loan of USD 106.90 million to IBRD and JPY 9413.95 million to JBIC respectively, total CSRP loan was repaid.

COAL VIDESH DIVISION

Initiatives undertaken for acquisition and development of coal assets abroad

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

The prospecting Licenses for coal, having nos. 3450L and 3451L, covering a total area of 224 square kilometres were granted to CIAL, a wholly owned subsidiary of CIL in Mozambique in 2009.

Various activities related to exploration of the allotted coal blocks were undertaken in 2013-14 which are as follows:

¦ Completion of 1st Phase drilling (5157 mtrs completed by 31.3.13 and 4843 mtrs completed in FY 2013-14)

¦ Completion of Geological Mapping in the allotted coal blocks in May 2013

¦ Awarded contract for 2nd stage drilling of 30000 mtrs in Nov 2013 and completion of 30,602 mtrs of drilling

¦ Completion of survey work for delineation of whole of the concession area and survey of the drilled and planned boreholes.

¦ Awarding contract for geophysical logging for an estimated 15000 mts in November 2013 and completion of geophysical logging work.

¦ Completion of analysis of coal samples from 9 (nine) boreholes in laboratories in India and 2(two) boreholes in Mozambique

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

In accordance with the decision of Foreign Acquisition Committee, a sub-committee of the Board of CIL, Coal Videsh Division of CIL, had published a notice inviting acquisition proposal from the owners of coal assets directly or through the mandated Merchant / Investor bankers (MB/ IB) under the GOI policy on Acquisition of Raw material assets abroad by CPSEs'

The status of progress for the financial year 2013-14 is as follows

¦ Proposals received in response to the advertisement were short listed

¦ Completed 1st level technical review in respect of shortlisted proposals and presented its finding to high level meetings.

¦ Review of legal and regulatory aspects of Foreign Direct Investment (FDI) in coal mining sector in ndonesia is in process.

(C) Status on setting up of Apex Planning Organisation (APO) and Apex Training Organisation (ATO) in Mozambique

The Prime Minister of India, declared USD 500 million of grant-in- aid for 21 projects for capacity building in Africa region, in India Africa Forum Summit (IAFS-1) held in New Delhi on 8-9 April 2008, which included setting up of an Apex Planning Organization (APO) and an Apex Training Organization (ATO) for coal sector in SADC region in Mozambique. Initially, entire funding for the APO and ATO was to be out of the Ministry of External Affairs (MEA) funds. Coal ndia Limited (CIL) was requested to execute the project utilizing the grant of MEA, GOI and to provide the balance funding for the project. The same was approved by CIL Board and the work could be taken up after signing of MOUs by the two governments. Initial cost estimates for APO and ATO were prepared in 2009 and it was decided to update the estimate.

The actions taken during the financial year 2013-14 are as follows

¦ A team from CMPDI visited Mozambique and held discussions with Mozambican officials to prepare a revised realistic cost estimate for both the APO and ATO using cost indices/parameters prevalent in Mozambique. CMPDIL prepared a revised cost estimate (RCE) for setting up and running of APO and ATO.

¦ Preparation of MOU, to be signed by the Govt of Mozambique and CIL related to setting up of APO and ATO in Mozambique and obtaining approval from respective Govts

¦ Draft MOUs were vetted by the Govt. of India and Mozambique and is being processed for further action

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

The Master Plan for dealing with fire, subsidence and rehabilitation in the lease hold of Bharat Coking Coal Limited (BCCL) and Eastern Coalfields Limited (ECL) was approved on 12th August, 2009 by Govt. of India with an estimated investment of Rs. 7,112.11 crores for Jharia Coalfields and Rs. 2,661.73 crores for Raniganj Coalfields. Implementation period has been delineated as 10 years

¦ Implementation of Master Plan is being monitored on half-yearly basis by High Powered Central Committee (HPCC) under the Chairmanship of Secretary (Coal)

¦ During FY 2013-14, HPCC meeting was held on 22.07.2013 and 24.01.2014 and Advisor (Projects) has conducted review meetings on 23.04.2013 & 24.10.2013 on the advice of Secretary, MoC

Master Plan dealing with Fire, Subsidence and Rehabilitation in the leasehold of Eastern Coalf elds Limited (ECL)

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

The salient features of the approved Master Plan are as follows

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

¦ No of houses/families assessed for Rehabilitation :- 33,196.

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

¦ No of Locations identified for Diversion of Infrastructure :- 7 (Railway lines, roads and IOC pipelines)

¦ Capital Requirement estimated for Diversion projects :- Rs. 11.35 crores.

¦ Capital Requirement estimated for Rehabilitation :- Rs. 2,610.10 crores

¦ Capital Requirement estimated for Fire schemes :- Rs. 40.28 crores.

¦ Total Capital Requirement assessed :-Rs. 2,661.73 crores

Master Plan dealing with Fire, Subsidence and Rehabilitation in the leasehold of Bharat Coking Coal Limited(BCCL)

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

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

¦ No. of houses to be vacated :- 98,314.

¦ No. of houses proposed to be reconstructed :- 79,159.

¦ Requirement of Land assessed for Rehabilitation :- 1,504.99 Ha.

¦ Capital Requirement estimated for Rehabilitation :- Rs. 4,780.60 crores

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

¦ Capital Requirement estimated for Fire schemes :- Rs. 2,311.50 crores

¦ Total Capital Requirement assessed :-Rs. 7,112.11 crores

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

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

b) Cash compensation in lieu of free plot along with the entitled compensation is to be offered if a house owner refuses to be resettled at the proposed township.

c) No cash compensation is to be paid to encroacher / settlers. Head of each such family will be provided a constructed fl at of 38.92 Sq. M. as super built up area.

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

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

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

The major implementation activities proposed to be completed in Phase I and II are:

I. Demographic survey of affected people, valuation of homestead land and house, including all structures / infrastructure on that land. Preparation / Distribution of photo-identity cards etc.

II. Identification and acquisition of land for proposed townships.

III. Tendering and awarding of work for land survey and township planning.

IV. Survey of land.

V. Township planning.

VI. Tendering and Award of work for townships.

VII. Construction of approach road, development of land and infrastructural facilities, demarcation of plots, construction of fl ats and providing amenities like schools, bank, post office, hospital, community centre, playground, shopping centre, etc.

VIII. Allotment of plots / fl ats for resettlement.

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

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

XI. Fire mitigation.

XII. Diversion of surface infrastructure like Rail, Road, IOC pipeline etc.

Action taken for Implementation of Master Plan Achievement upto 31.3.2014

A. For Raniganj Coalf elds:

1) Status of demographic survey

Demographic survey work has been completed for all 126 sites. There are 10 locations having no habitation, 3 locations with only ECL population and at 2 locations survey could not be completed due to strong public resistance. The final list has already been published which contains 44598 households.

Survey for valuation of structure has been done in all 80 locations out of 126 locations as there is no legal title holder (LTH) in 46 locations. Number of LTH arrived at 5936 only which is very less. Hence submission of land documents has been extended to 08/04/2014 by conducting mini survey in a camp.

41522 numbers of photo identity card (PIC) distributed out of 44598. Rest of PIC could not be distributed due to either photo mismatch or refusal to take the same by public. Hence corrective actions have been taken to distribute the remaining PIC's.

2) Status of Land Acquisition

Acquisition of land in Bonjehmari (1300 Acres) and Gourangdih (2300 Acres) is under consideration of the West Bengal Govt. LA proposal has been submitted to LA Collector, Burdwan by ADDA.

Recently Namokesia mouza (26.00 Acres) at Salanpur Block which is non-coal bearing area and Bijaynagar Mouza (26.00 Acres) at Jamuria block where coal is available at more than 600 mtr depth, have been identified and are being examined for feasibility of rehabilitation of people from unstable location.

3) Diversion of Surface Infrastructure (Rail, Road and IOCL pipeline)

i) Diversion of Railway line from unstable location:

On the basis of geotechnical survey and a stability analysis of the working below the Andal-Sainthia Railway line of Pandaveswar Area, M/s CIMFR, Dhanbad had suggested for blind backfilling method to stabilize the working for 5-6 years. But no proven agency for doing the job of blind backfilling is known to both M/s CIMFR and ECL. Hence, High Powered Central Committee suggested for regular monitoring of the track line for any symptom of subsidence and also minimizing the speed of the train at this location.

With regard to diversion of Andal-Sitarampur Railway line of Salanpur Area, the work has been awarded to M/s RITES for preparation of Feasibility Study Report (FSR) and Detailed Project Report (DPR).

ii) Diversion of NH-2 and District Board (DB) Road:

For diversion of National Highway (NH-2), NHAI, Durgapur has been requested to prepare DPR.Joint inspection by NHAI and ECL officials was conducted on 06.03.2014.

For diversion of DB road at Salanpur Area, the work for preparation of DPR including construction of culverts / bridges and drains etc. for Mohanpur road (1.8 km approx.) and Gourangdih-Begunia Road (0.72 km approx.) has been awarded to M/s Webcon Consulting (India) Limited, Kolkata on 25.02.2014.

Regarding another diversion of DB Road at Satgram Area, notice inviting EOI has been fl oated for preparation of DPR which will be opened on 16.5.2014.

iii) Diversion of IOCL pipeline:

For diversion of Indian Oil Corporation Limited (IOCL) pipeline, National Institute of Rock Mechanics (NIRM), Bangalore has conducted survey work to assess the stability of pipeline. After receiving the NIRM survey report, ECL submitted its comments on 28.11.2013 to IOCL for further action.

B. For Jharia Coalf elds:

a) Demographic (socio-economic) Survey 595 of fire affected / subsidence prone sites / areas are required to be surveyed. CIMFR, ISM and Whiz Mantra have completed demographic / socio- economic survey at 425 sites in which 54061 families have been identified.

b) Status of land acquisition by JRDA for rehabilitation sites

About 1105 ha. of land would be acquired for resettlement of non-BCCL families. Proposals for acquisition of 439.19 acres of Raiyati land and 133.96 acres Govt. land has been processed by JRDA. Possession of 163.86 acres Raiyati and Govt. land has been taken over by JRDA. NoC for 86.44 acres of land in Bhuli Township and 849.68 acres non-coal bearing land in and around Belgoria Township, belonging to BCCL, have been given by MoC for transferring to JRDA.

JRDA has acquired 120.8 acres of land in 2013 at Lipania mouza but physical possession of land is yet to be taken by JRDA.

c) Diversion of Road from f re affected areas

Road Construction Department (RCD), Govt. of Jharkhand has completed the job of repairing/ widening of Mahuda-Topchanchi road in the endangered portion of NH-32 between Godhar to Putki. BCCL has taken up the matter with NH authority to take up the matter with JRDA for handing over the affected portion of NH-32 for extinguishing the fire.

DPR for construction of road from Joraphatak to Dhokra for connectivity of Belgoria Township was forwarded to RCD, Govt. of Jharkhand by JRDA for technical sanction. Approval from RCD is awaited.

d) Diversion of Rail from f re affected areas

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

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

The matter was discussed in the 3rd IMC (Inter- Ministerial Committee meeting) held at Railway Board on 16.09.2013 at New Delhi. Short term and long term measures were suggested to tackle the issue. Detailed survey needs to be done to ascertain the feasibility of shifting and relocating the railway facility.

e) Utility Services from f re affected areas

Feasibility Report for diversion of utility services of Jharia Coalfield has been submitted by RITES Ltd. on 30.03.2013. BCCL has asked RITES on 6/2/2014 to clarify about shifting of existing utility services and clarification is awaited.

f) Service Building and Welfare Programme

Construction of service buildings like Market Complex, Bank, Post Office, Computer and Sewing Training Centre has been completed and construction of Masjid, Temple etc. are at different stages of completion.

g) Status of BCCL houses under the Master Plan

Construction of 344 houses at Bhuli, Bhimkanali, Nichitpur and Katras Coal Dump in triple storied blocks has been completed in non-coal bearing zone. 1152 triple storied quarters (96 blocks each of 12 units) are constructed at various places in non- coal bearing zone. Shifting of BCCL employees is in progress.

Construction of 4080 triple storied quarters (340 blocks each of 12 units) is in progress at a cost of Rs. 165.56 Crores. The work is expected to be completed by 06.11.2014.

Construction of 4020 triple storied quarters (335 blocks each of 12 units) is in progress at a cost of Rs. 286.39 crores. Work has been started and is in various stages of construction. It is expected that the work shall be completed as per scheduled date i.e. 31.5.2016.

The Board of Directors of BCCL has approved construction of 2240 nos. B, C and D typed quarters for shifting of persons affected by fire and subsidence at a cost of Rs. 428.40 crores. Letter of intent will be issued shortly.

h) Status of Non-BCCL houses (54159 nos.) under the Master Plan 2352 houses have been constructed in Belgoria rehabilitation Township "Jharia Vihar" and 1165 families have shifted till 31.03.2014. 1162 affected families were given Rs. 10,000/- each as shifting allowance.

i) Status of Fire Schemes

Under Master Plan, 28 nos. of Fire schemes have been proposed in Phase-I to be formulated / prepared for dealing with 67 fires sites spread over 41 collieries. Till date, 11 fire schemes have been approved by Board and implemented, out of which 4 schemes have been completed. Further, for expediting the fire dealing process, excavation methods has been resorted to by deploying Hired HEMM at various mines of BCCL.

j) Reduction in Fire Area

The coal mining operations in Jharia Coalfield have been continuing for more than 100 years by the erstwhile private owners. Due to un-scientific mining methods adopted by them, large areas of coal mines were subjected to mine fires and subsidence which had resulted in serious social and environmental problems in the area. At the time of the nationalization of coal mines in 1972-73 and taking over the mines by BCCL, the situation of mine fires was grave and fire had extended to about 9 sq.km. as assessed by a World Bank team.

At present, fire area has been reduced from 9 sq. km. to 2 sq.km. as per the satellite survey done by National Remote Sensing Centre, ISRO, Deptt. of Space, Hyderabad. This could be achieved only due to the successful 'excavation method i.e. digging out of fiery coal' adopted by BCCL. This fact has also been acknowledged by NRSC in their report. The coal mine fire survey / study was instituted by BCCL through National Remote Sensing Centre (NRSC), ISRO, Department of Space, Hyderabad in August, 2013 for delineation of surface coal fires in Jharia Coalfield. NRSC has submitted their report in March 2014, in which they have concluded that the present fire area in the coalfield is only 2 sq.km., which includes both over burden dump fire and active fire.

Further NRSC has planned another field study for ground truthing and GPR survey of subsidence/ unstable areas which is the 2nd component of study.

k) International Expression of Interest

Regarding latest technology for dealing with fire, International EOI has been fl oated by BCCL. No agency/company has responded for pre-EOI submission meeting held on 14.02.2014. BCCL is in the process of contacting different international experts in dealing fires directly. The EOI however, will be received up to 28.04.2014 and shall be opened on 29.04.2014.

Disbursement of total fund by CIL for implementation of Master Plan.

- To BCCL till March, 2014 : Rs. 376.09 crores

- To ECL till March, 2014 : Rs. 160.79 crores

16. ENVIRONMENTAL MANAGEMENT

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

EIA/EMPs for all the new and expansion projects as per EIA Notification SO 1533 dated 14th September, 2006 of MoEF are prepared for peak and normative capacities and environmental clearance is obtained. EIA / EMPs for mines requiring renewal of lease and falling under violations are also prepared for environmental clearance. EIA / EMPs on cluster basis for smaller and contiguous mines of ECL and BCCL are also being prepared for environmental clearance. During the year, CMPDI has prepared a total of 26 Form-I and formulated 14 Draft EIA/EMPs. Environmental clearances were also obtained from MoEF for 18 projects / Group of Mines of CIL during the year.

16.2 Pollution Control Measures and their Efficacy

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

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

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

16.3 ISO 14001 Certif cation

The implementation, certification and recertification of different units of CIL under ISO 14001 (Environmental Management System) is continuing. During the year 2013- 14, 14 units and MCL got newly certified while 19 units and NCL got recertified. As on 31.03.2014, 73 units and two companies (MCL and NCL) are certified under ISO 14001 standards.

16.4 Monitoring of land reclamation of OC mines through remote sensing

CMPDI, through Coal India Limited, has introduced satellite surveillance system for land reclamation/restoration monitoring of all the opencast coal mines for compliance of MoEF stipulations as well as for progressive mine closure monitoring. Land reclamation monitoring of 50 opencast projects having more than 5 million cu.m. production capacity (Coal+OB) and 32 opencast projects having less than 5 million cu.m. production capacity (Coal + OB) based on high resolution satellite data have been completed during the year 2013-14.

Vegetation cover mapping of six coalfields viz. Jharia, Talcher, Bisrampur, Wardha Valley, Kamptee and Makum coalfields based on satellite data have been completed for assessing the regional impact of coal mining on land use / vegetation cover in the span of 3 years to take remedial measures required, if any.

16.5 R&R Policy of CIL

With a view to meet the changing aspirations of Project Affected Persons (PAPs) and to redress the unique problems of Subsidiary Companies for fast acquisition of land, Rehabilitation & Resettlement Policy of CIL was revised in 2012 making it a liberal and PAP friendly which provides multiple options to land losers and more fl exibility to Board of Subsidiary Companies in redressing the R&R issues.

The existing R&R policy provides for conducting baseline socio-economic survey to identify PAPs enlisted to receive R&R benefits as well as to formulate a viable and practical Rehabilitation Action Plan (RAP) for the affected persons in line with their entitlements. The RAP is to be formulated in consultation with PAPs and State Govt. and should also address implementation, monitoring and evaluation, dispute mechanism and Environment Impact Assessment (EIA)

The R&R policy of Coal India Ltd., while emphasizing the need to cultivate and maintain a good relationship with the people affected by Coal India's projects and realizing its responsibility towards the land oustees whose livelihood is often taken away, apart from other things, provides for payment of land compensation and solatium, employment or lump sum monetary compensation and annuity, compensation for homestead, lump sum payment in lieu of alternate house-site, subsistence allowance to each affected displaced family.

16.6 Mine Closure Plans

In terms of revised guidelines issued by the Ministry of Coal (MoC) in 2013, CMPDI has prepared 257 mine closure plans (93 are new and 164 are revised based on the latest new guidelines dated 7th Jan'2013) for CIL mines during the year. Quick comments on 42 mine closure plans for coal blocks sent by MOC were also prepared.

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

17.1 Collaborative development of CBM prospects in Jharia and Raniganj coalf elds by consortium of CIL and ONGC

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

17.1.1 Jharia CBM Block

The Govt. of Jharkhand has granted Petroleum Exploration License (PEL) to the consortium of CIL-ONGC in August 2003 for Jharia CBM block after which the work as detailed in the Minimum Work Programme was taken up.

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

Consequent to the completion of envisaged work in the exploratory and pilot phases, consortium of CIL and ONGC has submitted a development plan of the block having a budgetary outlay of Rs. 1137 crores for the approval of the Government. The development plan was deliberated in the Steering committee meeting and government approval has been accorded vide letter no. DGH/CBM/MoPN&G/ ONGC/2013 dated 2nd July, 2013.

Further, CIL had conveyed to ONGC about its intention of increasing its Participating Interest (PI) from existing 10% to 26% from Development Phase onwards for this block in pursuance to the decision of CIL Board. The matter regarding operationalization issues and future course of action was deliberated by CIL Board wherein it was observed that there was a lack of transparency from ONGC for sharing information and the Board directed CIL to withdraw from Joint Operations.

17.1.2 Raniganj CBM Block

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

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

Consequent to the completion of envisaged work in the exploratory and pilot phases, consortium of CIL and ONGC has submitted a development plan of the block having a budgetary outlay of Rs. 957 crores for the approval of Government. The development plan was deliberated in the Steering committee meeting and government approval has been accorded vide letter no. DGH/CBM/MoPN&G/ ONGC/2013 dated 2nd July, 2013.

Further, CIL has conveyed to ONGC about its intention of retaining 26% Participating Interest (PI) in this block from Development phase onward in pursuance to the decision of CIL Board. The matter regarding operationalization issues and future course of action was deliberated by CIL Board wherein it was observed that there was a lack of transparency from ONGC for sharing information and the Board directed CIL to withdraw from Joint Operations.

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

17.2.1 CBM related studies:

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

During 2013-14, 8 boreholes located in different coal/lignite fields were taken up for studies by CMPDI.

Three reports based on CBM related studies viz. 'Assessment of CBM Gas-in-Place Resource in Saktigarh block, Pathakhera Coalfield; Nachchiyarkudi block, Mannargudi Lignitefield (TN) Banai block and Mand- Raigarh Coalfield' were submitted during 2013-14. A total of fourteen reports have been submitted since April, 2007.

17.2.2 Shale gas related studies

CMPDI is carrying out studies related to 'Assessment of Shale Gas-in-Place Resource of Indian Coalfields/Lignite fields' through boreholes being drilled under promotional exploration (XII Plan period) under PRE funding of Ministry of Coal. This study will create the data for assessment of shale gas potentiality and facilitate delineation of more blocks for shale gas development. A total of 25 boreholes are to be taken up for studies during the XII Plan Period with a total plan expenditure of Rs. 7.75 crores. During 2013-14, a total of 6 boreholes were taken up for shale gas related studies.

17.2.3 Activities taken up by CBM Lab

CBM Lab established at CMPDI has enhanced its capacity and added facility of TOC equipment for shale gas potentiality assessment. The instrument "Rock Eval Analyszer" required for assessing shale gas prospectivity for which supply order has been placed and procurement of the instrument "Automatic Porosimeter cum Permeameter" is under process.

CBM Lab has carried out the field desorption studies at the borehole sites in 8 boreholes during 2013-14 and has generated total gas content and gas composition data. In addition, studies have been carried out in 6 boreholes for assessment of shale gas potentiality.

CBM lab has carried out Adsorption Isotherm (AI) test for 20 samples (17 Coal and 3 Shale) during 2013-14 through in-house facility created in CMPDI in addition to carrying out Total Organic Carbon (TOC) analysis on 110 shale samples. Analysis of 913 mine air samples received from different collieries of CCL was also carried out and the results have been submitted.

17.3 Commercial development of Coal Mine Methane (CMM)

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

Under the aforesaid background, actions for commercial development were initiated and on behalf of CIL/concerned Coal Company's consent, CMPDI had fl oated Global Tender for selection of suitable Developer for commercial development of CMM in 5 identified blocks (3 in BCCL and 2 in CCL) in April 2011 which could not be proceeded further in view of certain issues regarding mechanism of operationalization raised by MoP&NG. To resolve the issues, the matter was deliberated at competent level of MoC and MoP&NG and it was resolved.

CCEA has granted its approval in December 2013 allowing CIL to explore and exploit CMM from its coal mining areas. A formal communication in this regard is awaited after which further activities will be undertaken by CMPDI/CIL for development and exploitation of CMM.

17.4 CMM/CBM Clearinghouse in India

A CMM/CBM clearinghouse was established at CMPDI, Ranchi under the aegis of Ministry of Coal and US EPA on 17th November'2008. The clearinghouse is functioning as the nodal agency for collection and sharing of information on CMM/CBM related data of the country and help in the commercial development of CMM Projects in India by public/private participation, technological collaboration and bringing financial investment opportunities.

The clearinghouse has been established with financial support from Coal India Ltd. on behalf of Ministry of Coal and US EPA. The website of India Clearinghouse, http:// www.cmmclearinghouse.cmpdi.co.in, encompasses all the important information viz. EOI notifications, newsletters in addition to information regarding opportunities existing for development of CMM, VAM, etc. After completion of the initial 3 years term in Nov.'2011, US EPA grant has been extended for additional 3 years on approval of Ministry of Coal.

Under the aegis of India CMM/CBM Clearinghouse, an international workshop on 'Development of Coal based Non-conventional Energy Resources in India' has been organized on 12th - 13th November, 2013 at CMPDI, Ranchi. It was well attended by the international dignitaries, international experts, high level Government functionaries from Ministry of Coal, Ministry of Petroleum & Natural Gas, captains of coal industries, CBM operators, and representatives of technical and research institutions.

18 COMMERCIAL DEVELOPMENT OF UNDERGROUND COAL GASIFICATION (UCG) WITHIN CIL COMMAND AREA

CMPDI has invited on-line bids on 20th January, 2014 for e-Tendering portal https://coalindiatenders.gov.in for Selection of 'Developer for Commercial Development of Underground Coal Gasification (UCG)' in Kaitha Block of Central Coalfields Limited (CCL) and Thesgora "C" Block of Western Coalfields Limited (WCL). Five firms participated in the pre-bid meeting held on 3rd February'2014. The due date for submission of offer has been extended from 10th March'2014 to 17th April, 2014.

19 DELINEATION AND PREPARATION OF DATA-DOSSIERS FOR DGH

19.1 Preparation of Data Dossiers for CBM Round V

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

19.2 Delineation and preparation of Data-dossiers for six prospective Shale gas blocks within Gondwana Basin DGH had assigned consultancy work of delineation and preparation of Data Dossiers for six prospective Shale Gas blocks within Gondwana Basin to CMPDI in May, 2011. Final Data Dossiers on Raniganj, Jharia, Bokaro, South Karanpura, North Karanpura and Sohagpur basins were submitted to DGH.

20 R&D AND S&T PROJECTS

20.1 EU Funded Research Project

CMPDI is one of the participating organizations along with IIT Kharagpur from India in the multi-national/multi- organization collaborative project titled 'Greenhouse Gas Recovery from Coal Mines and unmineable Coal beds and Conservation of Energy (GHG2E)' which has been approved under the partial funding scheme of European Union Research Commission. The balance fund has been provided under CIL R&D scheme. The project aims at studies and modelling of recovery of coal mine methane and its utilization as clean energy.

The work has been taken up and the assigned CMPDI work packages were submitted to Imperial College of Mining in January 2013 as per schedule. Presentation for progress review and Project workshop scheduled from 10th–14th June' 2013 at Slovenia were sent to Project Coordinator. The Project coordinator along with the team reviewed the progress at CMPDI on 13th November'2013 and visited Moonidih mine on 14th November 2013 to finalise data acquisition sites and draw action plan to generate samples. A review meeting was held with IIT Kharagpur at CMPDI on 24th January 2014. CMPDI is pursuing its assigned tasks as a collaborative partner and efforts made by CMPDI were appreciated.

20.2 CIL R&D Project 'Assessment of prospect of shale gas in Gondwana basin with specif c reference to CIL areas' Work on CIL R&D project titled 'Assessment of prospects of shale gas in Gondwana basin with special reference to CIL areas' is in progress. Areas have been demarcated for assessing the prospectivity of Shale gas within BCCL and CCL areas. Collection of shale samples for qualitative analysis has been done and generation of suite of parametric data for assessment of Shale gas potentiality in identified areas of BCCL and CCL command areas have been completed. Facility for taking up Total Organic Carbon (TOC) Analysis has been created in CMPDI lab, procurement of "Rock Eval Analyszer" finalized and supply order issued to M/s Vinci Technologies of France. Sub- implementing agency ARI (USA) has submitted the report on creation of type of well and simulation for assessment of Shale gas potentiality in delineated areas. Finalization of report is in progress.

20.3 CIL R&D project titled 'Studies on shrinkage swelling characteristics of some Indian coals to ascertain recoverability of CBM from deep seated coal resources'.

Work on CIL R&D project titled 'Studies on shrinkage swelling characteristics of some Indian coals to ascertain recoverability of CBM from deep seated coal resources' is in progress. Design and fabrication of the instrument is under progress at IIT Kharagpur. Design of Sample Cell and Experimental Cell completed and report submitted on 27th January, 2014 as per schedule. Procurement of High Pressure fittings and testing of instrument is under progress at IIT Kharagpur.

20.4 S&T Project on 'Shale gas potentiality evaluation of Damodar basin of India'

A S&T project on 'Shale gas potentiality of Damodar basin of India' at an investment of Rs. 16.87 crores under S&T plan of Ministry of Coal (MoC) is under implementation with an objective to evaluate Damodar basin for their shale gas potentiality through integrated geophysical, geological, geo-chemical and petro-physical investigations, as per schedule. The instrument 'Automatic Porosimeter cum Permeameter' is under procurement.

20.5 S&T Project on 'CBM reserve estimation for Indian coalf elds'

A S&T project on 'CBM Reserve estimation for Indian coalfields' at a cost of Rs. 20.70 crores has been approved under EoI of Coal S&T project. The project is of 3 years duration with effect from 24th March, 2014. Action has been initiated as per the approved project proposal.

21 GEOLOGICAL EXPLORATION & DRILLING

CMPDI continued to carry out coal exploration activities in 2013-14 also, mainly in CIL and Non-CIL/Captive Mining blocks. Exploration in CIL blocks was taken up to cater to the needs of project planning/production support of subsidiaries of CIL whereas exploration in Non-CIL/Captive Mining blocks was undertaken to facilitate allotment of coal blocks to prospective entrepreneurs.

CMPDI has substantially improved the capacity of drilling during XI & XII Plan periods. As against the achievement of 2.09 lakh metres in 2007-08, CMPDI has achieved 5.63 lakh metres in 2012-13 and 6.97 lakh metres in 2013- 14 (24% growth) through departmental and outsourcing resources. For capacity expansion through modernization of departmental drills, 39 new Mechanical drills and 4 Hi- Tech Hydrostatic drills have been procured since 2008- 09, out of which 10 have been deployed as additional drills and 33 as replacement drills. CMPDI has also replaced 38 mud pumps and 74 trucks during the last six years.

To meet the increased work load, recruitment has been taken up through campus interview/open examination. 201 Geologists, 26 Geo-Physicists and 20 Mechanical Engineers for Drilling were inducted in CMPDI since 2008- 09. About 343 non-executive staffs have also been inducted for exploration work. 25 Geologists, 2 Geo-Physicists, 5 Mechanical Engineers and 11 non-executives have resigned.

Under outsourcing, the work of 40 blocks involving 14.78 lakh metre of drilling was awarded through tendering since 2008-09, out of which drilling has been concluded in 18 blocks. Due to local (law and order) problems, work could not start in 2 blocks and stopped in 6 running blocks. Due to non-availability of forest clearance, work is stopped in 7 blocks. Due to lack of forest clearance and adverse law and order, about 2.14 lakh metre of drilling could not be carried out in outsourced blocks in 2013-14. In 2013-14, a total of 3.71 lakh metre (30% growth) has been drilled through outsourcing, which consist of 1.95 lakh metre through tendering and 1.71 lakh metre through MoU with MECL.

21.1 Drilling Performance in 2013-14

CMPDI deployed its departmental resources for detailed exploration of CIL/Non-CIL blocks whereas State Govts. of MP and Odisha deployed resources in CIL blocks only. Besides, eight other contractual agencies have also deployed resources for detailed drilling/exploration in CIL/ Non-CIL blocks. A total of 120 to 140 drills were deployed in 2013-14 out of which 57 were departmental drills.

Apart from it, CMPDI continued the technical supervision of Promotional Exploration work undertaken by MECL in Coal Sector (CIL and SCCL areas) in 9 blocks, GSI in 11 blocks and DGM (Nagaland) and DGM (Assam) in 1 block each for Promotional Exploration in Coal Sector on behalf of MoC. A total of 1.32 lakh metre of promotional drilling has been carried out in Coal (0.63 lakh metre) and Lignite (0.69 lakh metre).

In 2013-14, CMPDI and its contractual agencies took up exploratory drilling in 100 blocks/mines of 22 coalfields situated in 5 States. Out of 100 blocks/mines, 26 were Non- CIL/Captive blocks and 74 CIL blocks/mines. Departmental drills of CMPDI took up exploratory drilling in 53 blocks/ mines whereas contractual agencies drilled in 47 blocks/ mines.

The overall performance of exploratory drilling in 2013-14 is given below:

Performance of Exploratory Drilling in 2013-14 Achieved Target Previous Year: 2013-14 Achieved Achieved +/- 2012-13 Growth Agency (metre) (metre) (%) (m) (m) %

A. Detailed Drilling Undertaken by CMPDI :

I. Depart -mental 285000 325362 114% 40362 276199 18%

II. Outsourcing

State Govts. 9000 5943 66% -3057 7398 -20%

MECL (MOU) 185000 171006 92% -13994 138761 23%

Tendering (CIL blocks) 242000 156359 65% -85641 90779 72%

Tendering (non-CIL blocks) 179000 38171 21% -140829 49772 -23%

Total Outsour -cing 615000 371479 60% -243521 286710 30%

Total A 900000 696841* 77% -203159 562909 24%

B. Promotional Drilling in Coal Sector by MECL, GSI, DGM (Nagaland) and DGM (Assam):

GSI 14500 15589 108% 1089 14702 6%

MECL 69500 46753 67% -22747 30594 53%

DGM, Nagaland 700 783 112% 83 328 139%

DGM, Assam 300 123 41% -177 0 123%

CMPDI 4000 0 0% -4000 0 -

Total B 89000 63248 71% -25752 45624 39%

* In 2013-14, 4.59 lakh metre has been drilled in CIL blocks and 2.38 lakh metre in Non-CIL blocks.

In 2013-14, CMPDI achieved its departmental and overall drilling targets by 114% and 77%, respectively. The performance of departmental drilling was better than previous year with 18% growth and recorded an average operational drills productivity of 487 metre/drill/month. Non-availability of permission to explore in forest areas and local problems (law and order) has affected the performance of outsourced drilling. MECL could not achieve the targets of Promotional drilling in coal sector due to forest problems and CMPDI could not undertake promotional drilling due to priority in detailed drilling.

21.2 Geological Reports:

In 2013-14, 15 Geological Reports were prepared on the basis of detailed exploration conducted in previous years. In addition, 8 Revised Geological Reports were also prepared. The prepared Geological

Reports have brought about 2.5 Billion Tonnes of additional coal resources under 'Proved' category.

Under Promotional Exploration Programme, GSI and MECL have submitted 4 Geological Reports on coal blocks, estimating about 1.77 Billion Tonnes of coal resources, in 'Indicated' and Inferred categories, above specified thickness.

22 OUTSIDE-CIL CONSULTANCY SERVICES

During the year 2013-14, 29 consultancy jobs were done for 20 organizations outside CIL. Some of the major clients/organisations for whom jobs were completed are Neyveli Lignite Corporation Limited, MOIL Limited, National Thermal Power Corporation, Steel Authority of India Limited, National Aluminium Company Limited, Jindal Steel & Power Limited, Singareni Collieries Company Limited, Damodar Valley Corporation, etc.

Presently, 28 outside-CIL consultancy jobs are in hand for 18 organizations like MOIL Limited, Odisha Industrial Infrastructure Development Corporation (IDCO), National Thermal Power Corporation, Odisha Mining Corporation Limited, Odisha Power Generation Corporation Limited, Baitarani West Coal Company Limited, Neyveli Lignite Corporation Limited, Hindustan Copper Limited, Damodar Valley Corporation, Karnataka Power Corporation Limited, etc.

During the year 2013-14, 36 outside-CIL consultancy jobs worth Rs. 23.35 crores from 20 organizations were received by CMPDI.

23 RESEARCH & DEVELOPMENT PROJECTS

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

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

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

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

Total no. of S&T projects taken up (till 31.3.2014) - 380

Total no. of S&T projects completed (till 31.3.2014) - 310

23.2 Physical performance

During 2013-14, a total of 5 projects have been completed by various agencies. The status of Coal S&T projects during 2013-14 is as under:

i) Projects on-going as on 1.4.2013 15

ii) Projects sanctioned during 2013-14 02

iii) Projects completed during 2013-14 05

iv) Projects on-going as on 1.4.2014 12

Following Coal S&T projects were completed during 2013-14:

1. Integrated communication system to communicate and locate trapped underground miners.

2. Design and development of coal winnowing system for dry beneficiation of coal based on CFD modelling and simulation.

3. Development of methodology for estimation of Greenhouse Gas emissions in mine fire areas and their mitigation through terrestrial sequestration.

4. Development of tribo-electrostatic separator for beneficiation of high ash Indian coking coals.

5. An approach to explore the applicability of spectrometry as a tool for assessment of coal quality.

23.3 Financial status

Budget provision vis-à-vis actual fund disbursement during the period is given below:

(Rs. in crores)

2012-13 2013-14

RE Actual RE Actual

11.40 11.53 11.65 11.76

23.4 CIL R&D Projects

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

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

So far, 71 projects have been taken up under CIL R&D Board fund, out of which 48 projects have been completed till March, 2014.

The status of CIL R&D Board Projects during 2013-14 is as follows:

i) Projects on-going as on 1.4.2013 - 23

ii) Projects sanctioned during 2013-14 - 02

iii) Projects completed during 2013-14 - 07

iv) Projects on-going as on 1.4.2014 - 18

Following R&D projects were completed during 2013-14:

1. Analysis of in-situ stress for CBM exploration in Jharia Coalfield.

2. Effective utilization of low rank and low volatile high rank Indian coking coals for Blast Furnace (BF) coke making.

3. Assessment of performance of explosives/blast results based on explosive energy utilization.

4. Investigations of Bolt Behavior in Development and Depillaring Panels under Blast Induced Dynamic Loading.

5. Feasibility study of High Angle Conveying System (HAC) in Opencast Coal Mines by Computer Modelling and Simulation.

6. Investigation on augmentation of life of dump truck tyres through improvement of tyre re-treading compound and development of an optimum road maintenance management system-Phase-II.

7. Development of a notch cutting machine to facilitate construction of stoppings in underground coal mines.

The disbursement of funds for CIL R&D Projects during the year 2013-14 was Rs.10.97 crores.

24. TELECOMMUNICATION SYSTEM

In order to fulfill the vision of CIL to become a global player in the primary energy sector, the information and communication system of the organization plays a vital role to cope with the requirement keeping in view of each and every aspect of the business. CIL and its subsidiaries are concerned for putting continuous effort for up-dating the communication and IT solutions. To increase transparency, efficiency and optimal utilization of resources for customer and investor satisfaction, the following key initiations have been taken:

1. GPS based Operator Independent Truck Dispatch System (OITDS) with high speed Data and Voice communication is implemented and in the final stage of commissioning in all eleven Opencast projects to optimize operation of HEMM to enhance the production and productivity of the mine.

2. An ambitious plan to commission GPS/GPRS based vehicle Tracking System across all major mines of Coal India has been taken up.

3. E-auction of coal, E-procurement of goods and services are operational through service provider of CIL. E-payment to employee and vendors, E-filing of grievances are in operation to embark upon the business process through IT initiatives.

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

5. Corporate mail messaging system is in place and enhancement of mail messaging system to CIL and subsidiaries for ultimate capacity of 19400 users is under process to provide corporate mail for executives of CIL and subsidiaries.

6. Network infrastructure for better communication (Surface and Underground) for faster business process is continuously progressing with quick refund of coal value for un-lifted quantities and earnest money as per directives of MoC using state - of - art convergent technology.

7. In order to meet the demanding business process, state – of - art IP base EPABX with support of convergent technology for voice and data, Radio communication System and UG communication system at different locations of Coal India and its subsidiary companies are operational.

8. The dedicated Web Portal of Coal India has been established in English and Hindi with enhanced look and feel encompassing the features like Employee Portal, Tender publication, On-line grievance management, Investor center, Customer corner, Vigilance etc. The Portal also facilitates for receiving on-line applications for recruitment of MTs, link to E-procurement and e-auction.

9. Video conferencing between CIL, Subsidiaries and MoC for enhancement of decision making process for better production and productivity is under final stage of implementation through Multi Protocol Layered Switching (MPLS) links.

25. MINES SAFETY

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

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

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

- Collective commitment and synergies shown by the management and employees.

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

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

- Strong oversight and assistance from various quarters.

Salient features of continuous and sustained improvement in CIL's safety performance:

1. The 5 yearly average fatalities since the inception of CIL in the year 1975 have shown a reducing trend over a period of time as evident from the graph given below:

Note: Accident Statistics are maintained calendar year wise in conformity with DGMS and figures for the year 2013 are subject to reconciliation with DGMS

2. The 5 yearly average fatalities for the period 2010-13 have reduced by 66% compared to average fatalities during 1975-79.

3. The 5 yearly average serious injuries in CIL since its inception in the year 1975 upto 2013 have also shown a reducing trend over a period of time as is evident from the graph below:

4. The 5 yearly average serious injuries have reduced more sharply than fatalities in the same time frame. As figures of serious injuries are the precursor of fatal accidents and mine disaster, it is the indicator of improvement in safety standards of our mines as a whole.

Analysis of trend of Accident Statistics of CIL for the last 5 years is also indicating overall improvement in safety performance in CIL.

- Reducing trend of fatalities in CIL for the last 5 years

Details of Accident Statistics in 2013 vis-à-vis 2012:

During the year 2013, there were 54 fatal accidents and 58 fatalities in CIL mines compared to 57 and 60 respectively in 2012. Thus the numbers of fatal accidents and fatalities in 2013 compared to 2012 have reduced. The serious accidents and serious injuries for the year 2013 compared to 2012 have reduced significantly to 175 and 178 respectively from 212 and 219. These are the lowest serious accidents and serious injuries figures since the inception of CIL in 1975.

Overall: Accident Statistics for CIL in 2013 compared to 2012 are given below:

Sl. No. Parameters 2012 2013

1 Number of fatal accidents 57 54

2 Number of fatalities 60 58

3 Number of serious accidents 212 175

4 Number of serious injuries 219 178

5 Fatality Rate per million tonne of coal production 0.13 0.12

6 Fatality Rate per 3 lakhs manshift deployed 0.22 0.21

7 Serious injury Rate per million tonne of coal production 0.48 0.38

8 Serious injury Rate per 3 lakhs man shift deployed 0.79 0.64

25.2 Major Activities of Safety & Rescue Division of CIL:

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

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

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

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

5. Framing of internal technical circulars / guidelines related to safety issues and monitoring implementation.

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

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

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

9. Monitoring safety related R&D activities.

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

25.3 Actions taken for improvement of safety in mines undertaken in 2013

To improve safety standard, CIL has vigorously pursued several measures in the year 2013 along with on-going safety related activities / initiatives apart from compliance of statutory requirements for safety which are given below:- - Continuous oversight of safety status of mines is being done through multi-disciplinary Internal Safety Organization (ISO).

- After analysis of fatal accidents which occurred at different point of time in 2013, several directives / guidelines on corrective measures to be taken for prevention of recurrence of similar type of accident in future are being issued from the Safety & Rescue Division of CIL.

- Stress on preparation and implementation of Risk As- sessment based on Safety Management Plan (SMP).

- A protocol for conducting safety audit by external independent agencies has been prepared to bring uniformity and efficiency in mine safety audit.

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

27. Safety Monitoring Agencies in CIL: Apart from statutory monitoring by DGMS, the status of safety is being monitored at various levels by the following agencies:

Level Monitored By Mine level 1. Workman inspectors: as per Mines Rule- 1955

2. Pit Safety Committee: constituted as per Mines Rule-1955

Area level 1. Bipartite/Tripartite Committee Meeting 2. Safety Officers' Coordination Meeting

Subsidiary HQ 1. Bipartite/Tripartite Committee Meeting at level HQ level

2. Area Safety Officers' Coordination Meeting

3. Inspections by ISO Officials

CIL HQ: 1. CIL Safety Board

Corporate 2. CMD's meet

Level 3. Director (Tech)'s Coordination Meeting

Ministry of Coal 1. Standing Committee on Safety in Coal (MOC) / Other Mines

Ministries Level 2. National Conference on Safety in mines 3. Various Parliamentary Standing Committees

28. HUMAN RESOURCE DEVELOPMENT

The Company has made optimum utilization of resources and technology and also used advanced methods and technology for the enhancement of efficiency and productivity in the company. HRD has been developing new techniques and opportunities for employee's self development which in turn proved to be favorable for the company as a whole.

28.1 Overall Performance

In CIL and its subsidiaries, 93825 employees have been trained during 2013-14 out of which 20502 were executives and 73323 were non-executives. These training programmes included in-house training (training at subsidiary training centres and also at IICM), training in other reputed institutes outside the Company and training abroad.

28.2 Trainings

i) In-house Training

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

Short Workshop/ Training Training Seminar Total

Executives 7135 8273 1211 16619

ii) Training Outside Company (Within the Country)

Besides in-house training at our Training Institutes, VT centers and IICM, employees were trained within the country at reputed training institutes, in their respective field of operations and also for supplementing our in- house training efforts. Employees from eight subsidiary companies and from CIL (HQ) have been trained in those reputed institutes. The break-up is given below:-

Short Workshop/ Training Training Seminar Total

Executives 1363 1428 970 3761

Non- executives 642 85 29 756

Total 2005 1513 999 4517

iii) Training Abroad

Coal India has deputed 122 executives to different countries from its subsidiary and HQ during the year 2013-14 for Training, Workshops / Seminars / Conferences as per the details given below:-

Training Workshops / Seminars / Total Conferences

Executives 57 65 122

28.3 Initiatives

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

- As MTs of Excavation and E&M disciplines are posted in different Coal Mines, to provide them proper exposure to Mining Operations as well as Mining Equipments (both surface and underground) and to make them conversant with the Mining activities, 5 weeks of intensive training in different batches for a total of 253 MTs was organized at

Indian School of Mines, Dhanbad, the Premier Mining Institute of our country during the year 2013-14.

- Special training modules as per the need of our industry have been designed and tie-ups were done with IIM, Lucknow and ASCI, Hyderabad to train our middle level (E4- E7) executives on Management Development Programmes at their campuses w.e.f. 1st April, 2014.

- Similarly tie-up was made with IIM, Calcutta to train about 150 General Managers (E8) of different disciplines on Advance Management including overseas learning w.e.f. 4th May, 2014.

- 5 senior executives were sent to Japan to attend a 8-day training programme on 'Coal Preparation'.

- 2 middle level executives were sent to China to attend a 20- day training programme on 'Fully Mechanized Coal Mining Technology- 2013'.

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

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

During FY 2013-14, Coal India Limited had inducted fresh talent into the organization at entry level as Management Trainees. 1141 Management trainees inducted in various technical and non- technical disciplines through open advertisement recruitment and 604 selections made through campus from various institutions of repute. Out of these campus selections 455 Management Trainees would be joining the Company in July- Aug 2014 upon completion of their courses. Coal India Limited has also advertised for 339 posts of MTs in March 2014 for the newly created Community Development discipline besides Environment, Sales & Marketing, Personnel, Materials Management and Finance disciplines. This process is likely to conclude by October 2014. Additionally, the Company has recruited 125 Specialist doctors and recruitment of 192 General duty doctors is at the concluding stage. At Lateral level 05 Ex- servicemen who have undergone Business Management Courses at IIMs have been recruited through campus selection and posted at different subsidiary companies. Apart from this, the Company has also inducted 190 persons in executive cadre from its existing pool of employees of non-executive cadre through selection/ promotion.

29. MANPOWER

29.1 The total manpower of the Company including its subsidiaries as on 31.03.2014 is 3,46,638 as against 3,57,926 as on 31.03.2013. The subsidiary company-wise position of manpower is as given below:-

Company As on Total 31.03.2014 71826 ECL

31.03.2013 74276

31.03.2014 58960 BCCL

31.03.2013 61698

31.03.2014 46686

CCL

31.03.2013 48126

31.03.2014 52484

WCL

31.03.2013 54960

31.03.2014 70910

SECL

31.03.2013 73718

31.03.2014 22278

MCL

31.03.2013 22065

31.03.2014 16741

NCL

31.03.2013 16073

31.03.2014 2199

NEC

31.03.2013 2376

31.03.2014 3135

CMPDIL

31.03.2013 3142

31.03.2014 512

DCC

31.03.2013 551

31.03.2014 907

CIL(HQ) 31.03.2013 941

31.03.2014 346638

Total (CIL as a whole)

31.03.2013 357926

29.2 The presidential directives for Scheduled Castes/Scheduled Tribes/OBCs have been implemented in all the subsidiaries/ units of Coal India Limited.

The representation of SC/ST employees in the total manpower of CIL and its Subsidiary Companies as on 01.01.2012, 01.01.2013 and 01.01.2014 is given below:-

Scheduled Castes Scheduled Tribes Total As on Manpower Nos. Percentage Nos. Percentage

1.1.2012 374650 77885 20.79 45424 12.12

1.1.2013 361348 74780 20.69 43342 11.99

1.1.2014 350188 72957 20.83 42049 12.01

30. INDUSTRIAL RELATIONS AND EMPLOYEES' PARTICIPATION IN MANAGEMENT

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

Strikes and Bandhs

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

STRIKES AND BANDHS

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

2012-13 2013-14 2012-13 2013-14

ECL 2+1 1+0 6 24

BCCL 2+1 1+0 7 1

CCL 2+1 1+0 61 41

WCL 2+1 1+0 2 0

SECL 2+1 1+0 0 0

NCL 2+1 1+0 12 0

MCL 2+1 1+0 0 0

NEC 2+1 1+0 0 0

CMPDI 2+1 1+0 0 0

CIL 2+1 1+0 0 0

Total 2+1 1+0 88 66



Company Production Loss Mandays lost (per tonne)

2012-13 2013-14 2012-13 2013-14

ECL 27427 2166 24100 35000

BCCL 7557 2057 19700 1453

CCL 4165 2236 00 00

WCL 40366 2756 201800 9700

SECL 56571 2942 239000 00

NCL 1769 271 73500 00

MCL 1617 1906 00 00

NEC 198 106 00 00

CMPDI 677 778 00 00

CIL 60 206 00 00

Total 140407 15424 558100 46153

Bandh- Nil

Strike – Strike call given by Coal Mines Officers Association of India (CMOAI), majority of the executives remained on strike on 13-3-2014 in CIL and Subsidiaries

31. EMPLOYEES' WELFARE AND SOCIAL SECURITY SCHEMES

EMPLOYEE WELFARE

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 belonging and involvement in work, top priority is given by the management to provide housing, medical, educational facilities, sports and cultural facilities etc.

1) Structured Sports Policy of CIL and its subsidiaries, Memorandum of Association and Regulation and Registration under West Bengal Societies Registration Act 1961.

Coal India Sports Promotion Association (CISPA) has been registered under West Bengal Societies Registration Act 1961.

The structured sports policy was formulated and approved by the CIL Board. The objectives of the policy are as under:- a) To formulate the policy for promoting excellence in sports at State, National/International level and use these efforts as a vehicle to enhance the image of such sports persons as Brand Ambassador.

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

c) To advise and assist in the improvement and construction of sports academies / grounds / clubs / auditoriums and to allocate funds for various Sports Activities within Coal India and its subsidiaries.

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

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

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

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

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

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

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

The Board of Directors of CIL in its 289th Meeting held on 18.09.2012 had approved modifications/additions in the

Contributory Post Retirement Medicare Scheme for Executives of CIL and its Subsidiaries (CPRMSE). Accordingly an Office

Order has been circulated on 28.12.2012 for implementation of the Revised Scheme.

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

Further annual charges for domiciliary / outdoor treatment expenses have also been raised to Rs. 15,000/- payable in two installments.

3) HOUSING

At the time of nationalisation, there were only 1,18,366 houses including sub-standard houses. The availability of these houses has increased to 3,99,354 (as on 31.03.2014). The percentage of housing satisfaction has now reached 100%.

4) WATER SUPPLY

As against 2.27 lakhs population having access to potable water at the time of nationalisation in 1973, presently a populace of 21.17 Lakhs (as on 31.03.2014) has been covered under water supply scheme.

5) MEDICAL FACILITIES

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

There are 79 hospitals with 5,709 beds, 418 dispensaries, 589 ambulance and 1445 doctors including specialists in CIL and its subsidiaries to provide medical services to the employees. Besides 11 Ayurvedic dispensaries are also being run in the subsidiaries of Coal India Limited to provide indigenous system of treatment to workers.

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

Moreover, medical facilities are being provided to people residing in and around mine premises of the subsidiary companies of CIL.

6) EDUCATIONAL FACILITIES

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

Coal India Scholarship Scheme (Revised – 2013)

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

Scholarship

The no. of students who have been getting Scholarship and no. of students of IIT, NIT and Govt. Engineering and Medical Collages whose tuition fees and hostel charges are being reimbursed are given as under:-

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

ECL 924 60

BCCL 118 49

CCL 795 24

WCL 3581 113

SECL 3883 189

MCL 1436 44

NCL 881 103

CMPDIL 174 22

Total 11,792 604

Grant sanctioned for schools, including privately managed schools:

Amount Company (Figs. in Lakh Rupees)

ECL 373.92

BCCL 274.00

CCL 2038.00

WCL 927.28

SECL 3587.35

MCL 242.00

NCL 2202.42

CMPDIL 1.00

Total 9645.97

7) Statutory Welfare Measures:

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

8) Non-statutory Welfare Measures:

Co-operative Stores and Credit Societies

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

9) Banking Facilities

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

10) Welfare, Development and Empowerment of Women

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

Coal India Ltd and its subsidiary companies are extending full- fl edged support and patronage to National Conference Forum of WIPS held every year in February at predetermined locations by sponsorship of the event, nomination of maximum number of delegates and also by competing for the BEST ENTERPRISE award. In recent years WIPS cell has done commendable work in reaching out to the grass-root level women employees, empowering them by suggesting gainful redeployment, training and uplifting their morale by recognizing outstanding achievement, and honouring the exceptional talent.

24th National Meet of WIPS

The 24th National Meet of WIPS was held at Swabhumi, Kolkata on 11th and 12th February, 2014. Coal India supported this programme in a grand way by being the Diamond Sponsor, and deputed volunteers and anchors for the programme. The two days National Meet was attended by 700 women from different PSEs, Banks and Insurance Companies from all over the country and it was hosted by the Eastern Chapter of WIPS. Former Lok Sabha Speaker Mr Somenath Chatterjee, and D. G. SCOPE, Dr. U. D. Choubey graced the inaugural session, as distinguished Guests. Coal India won JURIES SPECIAL AWARD for Excellence in Public Sector Management under Maharatna Category.

International Women's Day

International Women's Day was celebrated on 8th March, 2014, at Coal Bhawan by organizing an in-house cultural programme to unleash the potential of women employees of CIL (Hqrs.).

11) Corporate Social Responsibility (CSR)

Corporate Social Responsibility (CSR) is company's commitment to operate in an economically, socially and environmentally sustainable manner, while recognizing the interests of its stakeholders.

Coal India Limited has a well-defined CSR policy introduced w.e.f. 29.06.2010 based on the guidelines issued by the Department of Public Enterprise for Central PSUs on CSR in April 2010, which is also applicable in respect of subsidiary companies of CIL.

The poor and needy people of the society living in and around the coalfields/mining areas in different parts of India are the major areas covered under CSR activities. The CSR policy is operational within the radius of 25 KM of the project site and areas including Head Qtrs. Further CSR activities are also undertaken beyond the mining areas within the respective state with the approval as per norms. CIL being a holding company executes CSR activities on all-India basis.

The annual budget for CSR in respect of subsidiary companies is allocated based on 5% of the retained earnings of the previous year subject to a minimum of Rs. 5 per tonne of coal production of the previous year. In respect of CIL as a Holding Company, 2.5% of retained profit of last year is allocated for execution of CSR activities.

CIL believes in 'mining with a human face' through a socially sustainable inclusive development process. It pursues a structured CSR policy in and around the coal mining areas to improve quality of life with community consensus and inclusive participation.

12) Special Cash Award

During 2013-14, an amount of Rs. 51,000/- has been provided as Special Cash Award to 9 meritorious children of employees of CIL(Hqrs.), Kolkata, Desk Offices of subsidiary companies and Dankuni Coal Complex @ Rs. 7,000/- for 3 students who have secured 90% or above marks in the Class-XII Board level examination and @ Rs. 5,000/- for 6 students who have secured 90% or above marks in the Class-X Board level examination.

13) Recreational facilities:

Holiday Homes in the following tourist spots are available to the employees of CIL and its subsidiaries at subsidized rate.

(a) Puri

(b) Digha

(c) Goa

(d) Manali

(e) Nainital

(f) Katra

14) CIL Welfare Board Meeting.

The 42nd meeting of the Coal India Welfare Board was held on 18th October 2013 at Jaipur with the Central Trade Union Representatives and the representatives of the Management to discuss and decide regarding welfare policies, implementation of different welfare schemes in CIL and its subsidiaries.

32. TREE PLANTATION / AFFORESTATION.

Coal India Limited envisioned that tree plantation plays an important role in our economic development and environmental balance. Accordingly, every year Coal India Limited and its subsidiaries are planting tree saplings on the available land in its command areas. During 2013-14 Coal India Limited and its subsidiaries have planted 13.36 lakhs tree saplings over 526 ha under the plantation / afforestation programme.

Since inception, CIL and its subsidiaries had planted more than 81 million plant saplings over a land area of 34317 ha upto 31st March, 2014.

33. PROGRESSIVE USE OF HINDI.

Coal India Limited kept its efforts continued to propagate and spread the progressive use of Official Language Hindi during the year 2013-14. By adopting the Official Language policy of the Union which is based on motivation and encouragement, Coal

India ensures the implementation of the Statutory Provisions of the Official Languages Policy of the Union. The top management gives it high priority. A brief description of the work done during the year under review towards implementation of the Official Language is appended below:- To augment the process of implementation of the provisions of the Official Languages Act, Rules made there under and in order to increase the use of Hindi in day-to-day official work, regular meetings of the Official Language Implementation Committee are being organized. In these meetings, the members of the Hindi Advisory Committee of Ministry of Coal and the MoC Observer for Coal India were invited regularly.

The meeting of Hindi Advisory Committee of Coal Ministry was held on 3.09.2013 under the Chairmanship of Hon'ble Minister of Coal, in which Coal India Ltd actively participated. The suggestions for implementation regarding use of Hindi received from the members are being implemented.

With a view to create a conducive atmosphere for working in Hindi and accelerating the use of Hindi as Official Language in among official work, a 'Hindi Fortnight' was organized from 14.9.2013 to 28.9.2013. During Hindi Fortnight, various Hindi Competitions such as Hindi essay writing, Hindi noting and drafting, Hindi Translation, Hindi Dictation, and Hindi typing were organized among the employees of Coal India Limited. Cash Awards and Certificates were given to the winners by Chairman, Coal India Ltd. on 20-12-2013 at the event of OLIC meeting where Shri Gopal Krishna Pharlia, member of Hindi Advisory Committee of Ministry of Coal, was also present. This created a consciousness among employees to use the Official Language in official work. It is notable that Regional Sales Offices situated at different cities were granted sufficient fund as per their sizes to celeberate Hindi Diwas and Hindi Week/Fortnight as per their practice. In order to promote Hindi, a Hasya Kavi Sammelan was organized on 21.12. 2013 at Rohini Housing Complex, Ultadanga, Kolkata where a large audience was present.

Another feather in the cap during the period under review was that Coal India Ltd. bagged the first prize in the Corporate Office category for the best implementation of the Official Language Policy of the Union by Town Official Language Implementation Committee (PSUs), Kolkata during its half yearly meeting cum prize distribution ceremony held on 30.08.2013 at Meghnath Saha Auditorium, Central Glass & Ceramic Research Institute, Kolkata. Coal India also received 'Karyalaya Deep Samman' from Rajbhasha Sanshthan, Delhi at Jim Corbett Park, Nainital on 10.10.2013 for the best implementation of Official Language Policy of the Union. With a view to promote Hindi knowledge of the employees, 10 sets of 9 reputed Hindi Magazines are being distributed among different departments / sections. Help literature and Hindi Dictionaries were provided to the sections & their incharge on their indent for smooth use of Rajbhasha in Official works. Unicode on computers is being activated in each and every computer.

With a view to create a working atmosphere for the use of the Official Language and to remove hesitation of officers and employees to work in Hindi Coal India organized Hindi workshop from time to time so that they may be aware of use of Hindi words, Hindi notings and drafting in their regular official works. Coal India always lays emphasis on imparting training in Hindi Language under Hindi Teaching Scheme of Govt. of India by nominating the employees in Hindi Praveen and Pragya classes. The Company has nominated 4 persons in the current session starting from January, 2014 in these classes. In addition, 4 persons were nominated for Hindi Stenography and Typing classes in the month of February, 2014.

The 3rd sub-committee of the Parliament on Official Language visited Coal India Ltd on 4.10.2013 to observe the status of use of Hindi in official work and to ensure that provisions of the Official Languages Act and Rules made there-under are properly complied with. They suggested ways and means for effective implementation of Official Languages Act in the official work and taken certain assurances from Chairman, Coal India Ltd. to fulfill it within the stipulated time. Coal India Ltd is committed to fulfill these assurances within the stipulated time.

The inspection of offices is a part of this implementation. Officials of Rajbhasha department, CIL (HQ.) reviewed the status of implementation of Official Language at some of its subordinate offices during the year under review. Suggestions have been given to correct the short-comings seen during the inspection and they were advised to achieve the target of Hindi correspondence, as stipulated in the annual programme of the Govt. Of India, Ministry of Home Affairs, Rajbhasha Vibhag.

34. VIGILANCE SET UP

The anti-corruption activities in CIL and its subsidiary companies have been institutionalized by setting up Vigilance Departments in CIL and subsidiary companies each of which is headed by a Chief Vigilance Officer (CVO), appointed by the Govt. of India in consultation with Central Vigilance Commission (CVC) on tenure basis, drawn from various government services.

During the year 2013-14, 44 Intensive Examination of Works/ Contracts were undertaken by CIL (HQ) and its subsidiary companies. In addition, 334 Surprise Inspections were carried out and 335 investigation cases were completed. Besides, 116 Departmental Inquiries were disposed of which resulted in punitive action against 264 officials. Such examinations/investigations have resulted in initiation of various system improvement measures.

As per the directives of Central Vigilance Commission, Vigilance Awareness Week – 2013 has been observed at CIL Hqrs., Kolkata and at subsidiaries from 28.10.2013 to 02.11.2013. emphasizing the theme of "Promoting Good Governance –Positive Contribution of Vigilance". The week was observed by organizing various activities in order to generate awareness, educate and discuss transparency among officials /stake holders as well as general public to arrest the root cause of corruption and to promote good governance. Banners were displayed at prominent places. System Improvement Suggestions were invited from all employees and the suggestions received were analysed. On 31.10.13, Group discussion on "Promoting good governance through e-governance" was organized at different departments of CIL HQ, with an aim to enhance the transparency in procurement process in organisation. In house contest/ competition were organized and entries received from employees and their family members of different departments of CIL HQ. During VAW-2013, Poster Making Competition and Essay Writing competition on anti corruption topics were organized in different categories for the wards of employees of Coal India Limited. The wards and spouses of employees of Coal India Limited were also allowed to participate in the slogan competition for Creating a Slogan and Essay writing competition. An Open Interactive Session with special emphasis on the theme "Promoting Good Governance – Positive Contribution of Vigilance", was held on 04.11.2013. The speakers discussed issues relating to transparency, good governance, Pro- active vigilance etc. In the interactive session, participants raised several issues which were discussed. Thereafter, Vigilance Corner page on CIL website was inaugurated. Apart from annual action plan, policy and circulars, it has facility for online filing of Vigilance Complaints including PIDPI complaint, online filing and viewing of Annual Property Return etc.

Online Whistle Blower Vigilance Complaint System at CIL

The Whistle Blower Vigilance Complaint (WBVIG) is a web based complaint/grievance handling system of Vigilance Division, Coal India Limited for disclosure on any allegation of corruption or misuse of office where identity of the complainant is kept secret. This is based on GoI resolution on Public Interest Disclosure and Protection of Informer (PIDPIR), popularly known as Whistle Blower policy. With regard to Whistle Blower Vigilance Complaint, the Vigilance Division, Coal India Limited is accepting the complaints with the responsibility of keeping the identity of the complainant confidential. Whistle Blower Vigilance Complaint system has been made accessible from CIL Web Portal.

Updation of CIL Purchase Manual.

As a part of Preventive Vigilance, suggestions related to Mode of tendering, Sources for fl oating Limited tendering, Eligibility criteria, Trial orders, Arbitration Clause have been communicated to Purchase Division, CIL(HQ) which may be put up to the committee for deliberations and consideration.

Tender for f nalization of Rate Contract for supply of Explosives

System improvement suggestions have been communicated to Purchase Division, CIL(HQ) for consideration and further needful action.

35. PARTICULARS OF EMPLOYEES.

No employee received remuneration during the year 2013- 14, either equal to or in excess of the limits prescribed under Section 217(2A) of the Companies Act,1956 read with Companies (Particulars of Employees)Rules,1975 as amended.

36. BOARD OF DIRECTORS

Shri S. Narsing Rao Chairman-cum-Managing Director of the Company, continued throughout the year. On being appointed as the Principal Secretary to the Chief Minister, Telengana, he has submitted his resignation to the Secretary, Ministry of Coal on 23rd May,2014. His resignation was accepted on 24th June,2014 by the Ministry of Coal and he relinquished his charge from 26th June,2014(FN).

Shri R.Mohan Das, Director (P&IR), Shri N.Kumar Director (Technical), Shri B.K.Saxena, Director (Marketing) and Shri A. Chatterjee, Director (Finance) were on the Board throughout the year.

Dr A.K.Dubey, Additional Secretary, MoC was nominated on the Board w.e.f 3rd April, 2013 and continued as a part-time official Director on the Board for the balance period of the financial year. Dr. A.K. Dubey, has assumed the additional charge of CMD, CIL with effect from 26th June'2014(FN). Ms Anjali Anand Srivastava, Joint Secretary & Financial Advisor, MoC, continued as a Part Time Director till 8th April, 2013. Smt Sujata Prasad, Joint Secretary & Financial Advisor, MoC, was nominated on the Board w.e.f 3rd May' 2013 and continued as a part-time official Director on the Board for the remaining period of the financial year.

On completion of their tenure a) Dr A.K.Rath ceased to be an Independent Director w.e.f 26th April, 2013 b) Shri Kamal R Gupta, Dr (Smt) Sheela Bhide and Prof. S.K.Barua ceased to be the Independent Directors w.e.f. 3rd August, 2013 and c) Dr R.N.Trivedi, Ms Sachi Chaudhuri and Dr. Mohd. Anis Ansari ceased to be the Independent Directors w.e.f 23rd August,2013.

Dr R. N.Trivedi and Shri Alok Perti were appointed as Independent Directors w.e.f 31st October 2013 and continued for the balance period of the financial year. Shri C. Balakrishnan and Dr. Noor Mohammad were appointed as Independent Directors w.e.f 19th December, 2013 and continued for the balance period of the financial year. Prof Indranil Manna and Shri Shri Prakash were appointed as Independent Directors w.e.f. 6th February, 2014 and continued for the remaining period of the financial year.

Shri A.N.Sahay, CMD, MCL and Shri A.K.Debnath, CMD, CMPDIL have been appointed as permanent invitees on the CIL Board w.e.f. 23rd April, 2013. Shri D.P.Pande has been appointed as a permanent invitee on the board w.e.f 12th July, 2012 and continued till 10th April, 2013.

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

In terms of Article 33(d) of the Articles of Association of the Company, one-third of the Directors are liable to retire by rotation shall retire at the ensuing Annual General Meeting and they are eligible for reappointment.

The Board of Directors held 10 meetings during the year 2013-14.

37. DIRECTORS' RESPONSIBILITY STATEMENT

In terms of Section 217(2AA) of Companies Act, 1956 read with Significant Accounting Policy at Note 33 and additional Notes on Accounts at Note 34 forming part of Accounts (CIL- Standalone 2013-14), it is confirmed:

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

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

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

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

38. ACCOUNTS OF THE SUBSIDIARIES

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

39. COST AUDIT

In pursuant to the directions of the Central Govt. for conducting Cost Audit of Cost Records, the proposal for appointment of M/s Musib & Co as Cost Auditor of your Company for the year 2013- 14 was approved by the Central Govt. and accordingly they have been appointed. The Cost Audit Report for the year 2012-13 was filed by your Company on 26th September'2013.

40. SECRETARIAL AUDIT

The Company conducted Secretarial Audit for the year 2013-14. The report of the Secretarial Auditor is included in the Corporate Governance Report. The observation of the Secretarial Auditor and Management Explanation is enclosed as Annexure V.

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

Eastern Coalf elds Limited (ECL)

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

BIFR sanctioned the Draft Rehabilitation Scheme in November,2004 for implementation. As per the scheme, the networth of the Company was slated to become positive in 2008-09 with concession from CIL. The Cabinet Committee on Economic Affairs has also approved the BRPSE recommended Revival Plan of ECL on 6th October, 2006. As per this Scheme, the networth of the Company was slated to become positive in 2009-10.

As directed by BIFR, in its meeting held on 02.09.2011, DMRP, September, 2011 was submitted. As per the revised DMRP of ECL- September, 2011, the networth of the Company was slated to become positive in 2015-16. Effective steps have been taken to successfully implement the revival plan and the Company is expected to report positive networth by the end of the financial year 2013-14 with concession from CIL.

In the meeting held on 19.09.2013, the BIFR Bench directed the Company to provide copy of progress report to trade unions, and to continue sending the progress report to BIFR and MA (SBI). It further directed the Company to file appropriate application for discharge, once the networth of the Company turns positive.

42. ACKNOWLEDGEMENT:

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

43. ADDENDA

The following are annexed.

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

ii) Auditors Report for the year ended 31st March,2014 and Management reply (Annexure I).

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

iv) Foreign Exchange Earning and Outgo (Annexure II).

v) Details about research and development of the Company

(Annexure III).

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

vii) Observation of Secretarial Auditor & Management Explanation (Annexure V).

viii) Presidential Directive dated 17th July,2013 (Annexure VI).

ix) Performance against MoU for the year 2013-14 (Annexure VII).

For and on behalf of the Board of Directors



A.K. Dubey Kolkata, 17th July, 2014 Chairman


Mar 31, 2013

To The Members of Coal India Limited.

Ladies & Gentlemen,

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

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

CIL has eight fully owned Indian subsidiary companies viz.:

Eastern Coalfields Limited (ECL),

Bharat Coking Coal Limited (BCCL),

Central Coalfields Limited (CCL),

Western Coalfields Limited (WCL),

South Eastern Coalfields Limited (SECL),

Northern Coalfields Limited (NCL),

Mahanadi Coalfields Limited (MCL) and

Central Mine Planning & Design Institute Limited (CMPDIL).

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

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

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

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

1. NOTABLE ACHIEVEMENTS

CMPDI bags International Award

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

Coal India features in Platts Global Energy Company rankings

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

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

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

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

Coal India receives Geospatial Award

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

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

Coal India bags CSR Award

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

CIL conferred with two CSR Awards

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

2. FINANCIAL PERFORMANCE

2.1 Financial Results

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

(Rs. in crores)

Company 2012-13 2011-12 Profit Profit

ECL (+) 1897.18 (+) 962.13

BCCL (+) 1709.06 (+) 822.36

CCL (+) 2683.56 (+) 1970.24

NCL (+) 4420.58 (+) 4265.67

WCL (+) 428.87 (+) 440.50

SECL (+) 6290.37 (+) 6002.87

MCL (+) 6202.48 (+) 5463.69

CMPDIL (+) 29.77 (+) 30.79

CIL/NEC (+) 10338.03 (+) 8599.95

Sub-Total (+) 33999.90 (+) 28558.20

Less: Dividend from Subsidiaries (-) 9038.08 (-) 7307.20

Total (+) 24961.82 (+) 21251.00

Adjustment for deferred revenue income (+) 18.34 (+) 21.59

Adjustment for exchange rate variation on

Current Account overseas subsidiary (+) (1.12) (+) 0.07

Overall Profit as per Consolidation of Accounts (+) 24979.04 (+) 21272.66

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

Highlights of performance

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

2012-13 2011-12

Production (in million tonnes) 452.21 435.84

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

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

Gross Profit (Rs./Crores) 25024.21 21326.64

Capital Employed (Rs./Crores) 75488.14 66599.31

Net Worth (Rs./Crores) 48471.99 40453.02

Profit before Tax (Rs./Crores) 24979.04 21272.66

Profit after Tax (Rs./Crores) 17356.36 14788.20

Gross Profit / Capital Employed (in %) 33.15 32.02

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

Profit after Tax / Net Worth (in %) 35.81 36.56

Earning Per Share (Rs.)

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

Dividend per Share (Rs.)

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

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

Sundry Debtors (Net) (in terms of No of Months Gross Sales) 1.42 0.87

2.2 Dividend Income and Pay Outs

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

(Rs. in crores)

Name of the Subsidiary Dividend Income of CIL

CCL 1486.74

(748.10)

NCL 1662.05

(2067.27)

WCL 184.04

(323.25)

SECL 2984.73

(1992.02)

MCL 2720.52

(2176.56)

Total 9038.08

(7307.20) Figures in brackets are for previous year.

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

3. COAL MARKETING

3.1 (a) Off-take of Raw Coal

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

Company-wise coal off-take:

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

(Figs. in Mt)

2012-13

Company AAP Target Achieved % Achieved

ECL 34.25 35.84 104.64

BCCL 31.80 33.04 103.90

CCL 56.60 52.89 93.45

NCL 69.25 67.29 97.17

WCL 45.25 41.55 91.82

SECL 118.00 121.99 103.38

MCL 113.75 111.96 98.43

NEC 1.10 0.62 56.36

CIL 470.00 465.18 98.97

2011-12 Growth over last year

Company Achieved Abs. %

ECL 30.83 5.01 16.25

BCCL 30.16 2.88 9.55

CCL 48.04 4.85 10.10

NCL 63.61 3.68 5.79

WCL 41.97 -0.42 -1.00

SECL 115.15 6.84 5.94

MCL 102.53 9.43 9.20

NEC 0.80 -0.18 -22.50

CIL 433.08 32.10 7.41

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

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

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

(Figs. in Mt)

Year 2012-13 Sector Target Despatch % Satn.

Power (Util) 342.31 345.43 100.91

Steel * 4.54 4.74 104.41

Cement ** 7.70 6.47 84.03

Fertilizer 2.70 2.50 92.59

Others 109.30 107.07 97.96

Despatch 466.55 466.21 99.93

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

Power (Util) 312.07 33.36 10.69

Stell 4.12 0.62 15.05

Cement 6.69 -0.22 -3.29

Fertilizer 2.79 -0.29 -10.39

Others 107.28 -0.21 -0.20

Despatch 432.95 33.26 7.68

* dispatch of washed coal,direct feed & blendable coal to steel plants,

** dispatch to cement plants excluding cement cpp.

3.2 Dispatches of coal and coal products by various modes:

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

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

(Figs. in million tonnes)

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

Rail 253.62 251.11 99.01 229.07 22.04 9.62

Road 108.51 115.68 106.61 113.39 2.29 2.02

MGR 92.15 88.77 96.33 79.32 9.45 11.91

Other Modes 12.27 10.65 86.80 11.17 -0.52 -4.66

Overall 466.55 466.21 99.93 432.95 33.26 7.68

3.3 Wagon Loading

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

(Figs. in Rake/day)

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

ECL 16.1 17.8 110.56 14.8 3.00 20.27

BCCL 21.0 20.8 99.05 19.8 1.00 5.05

CCL 30.4 27.3 89.80 25.4 1.90 7.48

NCL 18.7 18.7 100.00 17.7 1.00 5.65

WCL 15.0 17.5 116.67 14.0 3.50 25.00

SECL 35.9 32.9 91.64 31.8 1.10 3.46

MCL 51.9 50.8 97.88 43.5 7.30 16.78

NEC 0.81 0.60 74.07 0.74 -0.14 -18.92

CIL* 189.8 186.4 98.20 167.7 18.66 11.13

3.4 Consumer Satisfaction:

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

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

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

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

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

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

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

3.5 Marketing Of Coal :

(A) Status of implementation of different provisions under

New Coal Distribution Policy (NCDP) is as under:

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

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

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

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

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

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

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

(B) Initiative for overcoming logistic bottleneck:

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

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

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

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

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

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

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

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

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

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

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

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

3.6 Coal Beneficiation

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

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

3.7 Stock of Coal, Coke etc.

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

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

ECL 307.98 476.65 0.40 0.69

BCCL 757.05 946.79 1.07 1.56

CCL 1103.23 1379.68 1.55 2.26

NCL 629.32 391.10 0.86 0.59

WCL 584.54 488.14 1.05 0.87

SECL 445.55 572.54 0.33 0.46

MCL 460.38 530.59 0.55 0.67

NEC/CIL 13.11 15.65 0.45 0.45

Total 4301.16 4801.14 0.76 0.92

3.8 Coal Sales Dues

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

Figures in Rs. Crores

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

ECL 3981.52 3582.13 2665.04 2459.37

BCCL 1934.31 1372.05 1619.40 951.72

CCL 2080.45 1533.87 1471.75 1078.66

NCL 1741.28 1738.21 526.14 425.70

WCL 551.66 471.27 133.05 60.51

SECL 1582.46 1350.29 710.09 464.28

MCL 451.93 430.91 251.19 222.59

NEC/CIL 12.25 1.48 10.78 0.01

Total 12335.86 10480.21 7387.44 5662.84

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

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

Figures in Rs. Crores

2012-13 2011-12

Royalty 7248.61 5315.14

Cess & Others 2355.73 2745.85

Sales Tax / VAT 2908.49 2537.05

Stowing Excise Duty 457.54 421.75

Central Excise Duty 4227.49 3040.27

Clean Energy Cess 2319.35 2082.40

Entry Tax 213.90 103.15

Total 19731.11 16245.61

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

Figures in Rs. Crores

Company Particulars MP Chattis garh WB Jharkhand Maha rashtra

ECL Royalty 11.11 229.04

Cess & Others 1375.07

Sales Tax/ VAT/CST 321.97 54.59

Stowing Excise Duty

Central Excise Duty 376.50 168.50

Clean Energy Cess 80.34 71.91

Entry tax

Total 2164.99 524.04

BCCL Royalty 0.04 770.45

Cess & Others 3.79

Sales Tax/ VAT/CST 10.75 292.70

Stowing Excise Duty

Central Excise Duty 518.10

Clean Energy Cess 171.51

Entry tax

Total 14.58 1752.76

CCL Royalty 916.56

Cess & Others

Sales Tax/ VAT/CST 273.05

Stowing Excise Duty

Central Excise Duty 547.08

Clean Energy Cess 259.91

Entry tax

Total 1996.60

NCL Royalty 854.99

Cess & Others 288.35

Sales Tax/ VAT/CST 184.38

Stowing Excise Duty

Central Excise Duty 281.28

Clean Energy Cess 177.59

Entry tax 6.40

Total 1792.99

Company UP Orissa Assam CCO/GOI 2012-13

ECL 240.15

1375.07

376.56

34.75 34.75

545.00

152.25

0.00

Total 34.75 2723.78

BCCL 770.49

3.79

303.45

32.31 32.31

518.10

171.51

0.00

Total 32.31 1799.65

CCL 916.56

0.00

273.05

52.13 52.13

547.08

259.91

0.00

Total 52.13 2048.73

NCL 236.98 1091.97

13.24 301.59

177.48 361.86

66.72 66.72

222.91 504.19

139.06 316.65

29.54 35.94

Total 819.21 66.72 2678.92

Company Particulars MP Chattis garh WB Jharkhand Maha rashtra

WCL Royalty 140.31 704.23

Cess & Others

Sales Tax/ VAT/CST 60.73 268.70

Stowing Excise Duty

Central Excise Duty 73.59 363.67

Clean Energy Cess 31.33 174.16

Entry tax 9.34

Total 315.30 1510.76

SECL Royalty 492.99 1624.16

Cess & Others 246.05 424.25 4.98

Sales Tax /VAT/CST 168.11 558.41 3.58

Stowing Excise Duty

Central Excise Duty 206.14 763.52 1.39

Clean Energy Cess 75.65 532.73

Entry tax 20.38 76.15

Total 1209.32 3979.22 9.95

MCL Royalty

Cess & Others

Sales Tax/ VAT/CST

Stowing Excise Duty

Central Excise Duty

Clean Energy Cess

Entry tax

Total 0.00

CIL/NEC/ Others Royalty

Cess & Others

Sales Tax/ VAT/CST

Stowing Excise Duty

Central Excise Duty

Clean Energy Cess

Entry tax

Total

Overall Royalty 1488.29 1624.16 11.15 1916.05 704.23

Cess & Others 534.40 424.25 1383.84 0.00 0.00

Sales Tax/ VAT/CST 413.22 558.41 336.30 620.34 268.70

Stowing Excise Duty 0.00 0.00 0.00 0.00 0.00

Central Excise Duty 561.01 763.52 377.89 1233.68 363.67

Clean Energy Cess 284.57 532.73 80.34 503.33 174.16

Entry tax 36.12 76.15 0.00 0.00 0.00

Total 3317.61 3979.22 2189.52 4273.40 1510.76

Company UP Orissa Assam CCO/GOI 2012-13

WCL 844.54

0.00

329.43

41.29 41.29

437.26

205.49

9.34

Total 41.29 1867.35

SECL 2117.15

675.28

730.10

119.03 119.03

971.05

608.38

96.53

Total 119.03 5317.52

MCL 1225.06 1225.06

0.00

520.40 520.40

110.63 110.63

685.87 685.87

602.04 602.04

71.95 71.95

Total 3105.32 110.63 3215.95

CIL/NEC/ Others 42.69 42.69

0.00 13.64 13.64

0.68 0.68

18.94 18.94

3.12 3.12

0.14 0.14

Total 78.53 0.68 79.21

Overall 236.98 1225.06 42.69 0.00 7248.61

13.24 0.00 0.00 0.00 2355.73

177.48 520.40 13.64 0.00 2908.49

0.00 0.00 0.00 457.54 457.54

222.91 685.87 18.94 0.00 4227.49

139.06 602.04 3.12 0.00 2319.35

29.54 71.95 0.14 0.00 213.90

819.21 3105.32 78.53 457.54 19731.11

4. COAL PRODUCTION

4.1 Raw coal production

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

(Figures in Million Tonnes)

Company Coking Non-Coking Total

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

ECL 0.043 0.05 33.868 30.51 33.911 30.56

BCCL 26.970 27.25 4.243 2.96 31.213 30.21

CCL 16.156 15.55 31.905 32.45 48.061 48.00

NCL 0.000 0.00 70.021 66.40 70.021 66.40

WCL 0.330 0.32 41.957 42.79 42.287 43.11

SECL 0.157 0.19 118.062 113.65 118.219 113.84

MCL 0.000 0.00 107.894 103.12 107.894 103.12

NEC 0.000 0.00 0.605 0.60 0.605 0.60

CIL 43.656 43.36 408.555 392.48 452.211 435.84

4.2 Production from underground and opencast mines.

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

Company Underground Production Opencast Production Total Production

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

ECL 6.849 6.83 27.062 23.73 33.911 30.56

BCCL 3.153 3.48 28.060 26.73 31.213 30.21

CCL 1.024 1.09 47.037 46.91 48.061 48.00

NCL 0.000 0.00 70.021 66.40 70.021 66.40

WCL 8.200 8.39 34.087 34.72 42.287 43.11

SECL 16.869 16.41 101.350 97.43 118.219 113.84

MCL 1.678 2.19 106.216 100.93 107.894 103.12

NEC 0.003 0.00 0.602 0.60 0.605 0.60

CIL 37.776 38.39 414.435 397.45 452.211 435.84

4.3 Hard Coke and Washed Coal (Coking) Production

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

(Figures in Lakh Tonnes)

Hard Coke Washed Coal Company (Coking)

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

ECL - - - -

BCCL 0.00 0.00 13.29 14.21

CCL - - 12.39 13.34

NCL - - - -

WCL - - 1.44 1.37

SECL - - - -

MCL - - - -

NEC - - - -

CIL 0.00 0.00 27.12 28.92

4.4 Overburden Removal

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

(Figures in Million Cubic Metres)

Company 2012-13 2011-12

ECL 76.448 60.31

BCCL 84.259 81.36

CCL 63.308 65.68

NCL 195.706 201.66

WCL 113.685 122.49

SECL 118.202 113.49

MCL 90.361 85.67

NEC 4.733 4.48

CIL 746.702 735.14

4.5 Future Outlook

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

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

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

5. POPULATION OF EQUIPMENT

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

No. of Equipment Indicated as % of CMPDIL Norm

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

Dragline 39 40 90 93 77 83

Shovel 715 727 88 89 77 75

Dumper 3109 3280 101 100 70 69

Dozer 972 987 91 93 58 58

Drill 707 664 99 99 65 71

6. CAPACITY UTILISATION

I. SYSTEM CAPACITY UTILIZATION

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

Company Unit 2012-13 2011-12

ECL 118.97 129.90

BCCL 79.29 97.77

CCL 84.89 93.81

NCL 76.69 79.87

WCL % 93.41 102.49

SECL 80.52 79.87

MCL 75.61 69.90

NEC 66.34 56.29

Total CIL 82.99 86.12

7. PRODUCTIVITY: OUTPUT PER MANSHIFT (OMS)

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

(Figures in Tonnes per Manshift)

Underground OMS Opencast OMS Overall OMS

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

ECL 0.46 0.44 10.17 8.64 1.94 1.68

BCCL 0.35 0.36 8.31 6.57 2.50 2.20

CCL 0.33 0.32 6.09 5.79 4.42 4.19

NCL 0.00 0.00 13.65 13.55 13.65 13.55

WCL 1.10 1.08 5.03 4.22 2.97 2.70

SECL 1.37 1.30 19.26 19.32 6.72 6.44

MCL 0.97 1.24 21.34 20.38 16.07 15.36

NEC 0.01 0.01 3.77 3.79 1.30 1.23

CIL 0.77 0.75 11.48 10.40 5.32 4.89

8. PROJECT FORMULATION:

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

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

Expert Consultancy Services:

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

- Environmental Management and Monitoring,

- Remote Sensing,

- Energy Audit (Diesel & Electrical),

- Diesel & Electrical Consumption Benchmarking

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

- Subsidence Studies,

- Strata Control,

- Non-Destructive Testing (NDT),

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

- Petrography and Cleat Study on coal samples

- Coal Core Processing & Analysis

- Washability tests - OBR Survey

- Man Riding System

- Soil Erosion Study

- Slope Stability Study

- Effluent/Sewerage Treatment Plants

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

8.2 Project Implementation

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

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

1 CCL Amlo OC OC 2.50 64.82

2 SECL Nawapara UG 0.36 46.72

TOTAL 2.86 111.54

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

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

1 ECL Sonepur Bazari Comb* OC 8.00 1055.05

2 SECL Vijay West UG 0.50 92.60

3 SECL Amlai OC Sec-B OC 1.50 198.58

4 WCL Junakunada OC 0.60 23.76

5 WCL Gauri Deep OC 0.40 86.22

TOTAL 11.00 1456.21

*Earlier 3.5 Mty project has been dovetailed into 8 Mty,

Status of Ongoing Projects :

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

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

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

Projects Total projects Projects on schedule Projects delayed

Mining 117 55 62

Non Mining 26 21 5

Total 143 76 67

Reasons of delay Mining Projects :

SL REASONS FOR DELAY NO OF PROJECTS

1 ADVERSE GEOMINING CONDITIONS 1

2 DELAY IN LAND ACQUISITION + R&R 42

3 MISCELLANEOUS 19

TOTAL 62

Non - mining Projects :

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

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

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

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

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

1 ECL Sonepur Bazari Comb OC 8.00 1055.05

2 WCL Chinchala- Chikalgaon Amalgamated OC 3.00 1176.13

(c) CIL had approved one Non-mining project during the year 2012-13.

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

CIL NCL Incr. CHP for Jayant Expn Project 5.00 129.48

(d) The Subsidiary Company Boards had sanctioned one mining project under its delegated power during the year 2012-13 :

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

1. WCL Sch of Diversion of Amb River Phase-IV of Umrer OC OC 2.00 64.11

(e) The subsidiary company Boards sanctioned following 8 Non-mining Projects under its delegated powers during 2012-13.

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

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

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

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

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

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

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

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

8 MCL Construction of concrete CT Road connecting Bundia Mine to NH 200 of 12.54 km length 135.29

8.4 Revised Project /Revised Cost Estimates

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

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

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

1 CCL Kathara RCE OC 1.9 128.94

2 WCL Urdhan RCE OC 0.50 70.23

3 SECL Baroud Expn RCE OC 3.00 258.56

4 SECL Mahan RCE OC 0.36 148.72

9. CONSERVATION OF ENERGY

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

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

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

- Installation of capacitor banks for improvement of power factor,

- Use of energy efficient lamps.

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

- Installation of time switches for street lights.

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

- Installation of demand controller to control maximum demand.

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

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

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

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

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

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

10. CAPITAL EXPENDITURE

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

Figures in Rs. Crores

Company 2012-13 2011-12

(BE) Actual (BE) Actual

ECL 450.00 202.94 400.00 332.96

BCCL 300.00 266.15 400.00 410.72

CCL 425.00 397.42 350.00 320.99

NCL 850.00 444.19 800.00 702.11

WCL 350.00 264.05 350.00 275.72

SECL 900.00 628.85 600.00 937.65

MCL 500.00 531.56 700.00 497.95

CMPDIL 30.00 6.94 30.00 16.30

NEC/CIL/Others 470.00 173.13 590.00 232.77

Total 4275.00 2915.23 4220.00 3727.17

11. CAPITAL STRUCTURE

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

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

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

Total Rs. 8904.18 crores

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

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

Figures in Rs. Crores

As on 31.03.2013 As on 31.03.2012

Share Capital - Equity

Investment by GoI 5684.72 5684.72

Other Investors 631.64 631.64

Total 6316.36 6316.36

12. BORROWINGS

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

Figures in Rs. Crores

As on 31.03.2013 As on 31.03.2012

Share Capital - Equity

Foreign Loans including deferred credits

IBRD/JBIC 1136.23 1362.72

EDC Canada 160.35 155.63

Liebherr France SA., France 8.72 9.03

TOTAL 1305.30 1527.38

The debt servicing has been duly met,

13. INTERNATIONAL CO-OPERATION

International Co-operation.

Coal India is envisaged for foreign collaboration with a view to

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

- Exploration and exploitation of Coal Bed Methane

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

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

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

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

Indo-US Collaboration:

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

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

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

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

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

Ongoing Projects

A) Development of Coal Preparation Plant Simulator

B) Under Ground Coal Gasification

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

New Areas of Collaboration

i) Advanced Dry Coal Cleaning Technologies

ii) 3D seismic Surveys.

iii) Planning Large Capacity Opencast mines.

iv) Microwave Remote Sensing for Coal Mine Safety,

v) Mine Rehabilitation and Reclamation.

Indo-Russia collaboration:

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

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

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

2. Application of energy saving processes of coal processing.

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

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

Indo-Japan Collaboration

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

Indo-Czech Co-operation

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

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

Co-operation with Ukraine

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

14. WORLD BANK FINANCED PROJECTS FOR 2012-13

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

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

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

COAL VIDESH DIVISION

Initiatives undertaken for acquisition and development of coal assets abroad

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

Mozambique.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The salient features of approved master Plan are as follows:

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

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

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

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

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

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

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

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

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

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

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

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

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

- Requirement of Land assessed for Rehabilitation :- 1504.99 Ha

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

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

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

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

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

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

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

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

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

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

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

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

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

ii. Identification & Acquisition of land for proposed townships.

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

iv. Survey of land,

v. Township planning.

vi. Tendering & Award of work for townships,

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

viii. Allotment of plots/ flats for resettlement,

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

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

xi. Fire mitigation.

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

Action taken for implementation of Master Plan :

A. For Raniganj Coalfields

a) Status of Demographic Survey:

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

b) Land acquisition status:

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

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

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

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

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

B. For Jharia Coalfields :

a) Demographic (socio-economic) survey:

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

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

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

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

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

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

c) Diversion of Road from fire affected areas:

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

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

d) Diversion of Rail from fire affected areas:

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

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

e) Utility Services from fire affected areas:

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

f) Service Building & Welfare Programme:

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

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

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

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

Non-BCCL houses [54159 nos]:

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

1162 families have shifted till 31-03-2013.

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

Status of Fire Schemes:

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

Three more fire schemes are under preparation at CMPDIL.

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

Disbursement of fund by CIL

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

- ECL till March 2013 : Rs. 160.64 Crores.

16. ENVIRONMENTAL MANAGEMENT

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

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

16.2 Pollution Control Measures and their Efficacy

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

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

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

16.3 ISO:14001 System

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

16.4 Monitoring of Mines through Remote Sensing

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

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

16.5 R&R Policy of CIL,2012

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

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

16.6 Implementation of decision of the High Powered Committee

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

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

Categories of employee Basic rate (Per Day)

Unskilled Rs. 464.00

Semi-Skilled/Unskilled Supervisory Rs. 494.00

Skilled Rs. 524.00

Highly skilled Rs. 554.00

16.7 Mine Closure Plans

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

16.8 Research & Development

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

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

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

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

17.1.1 Jharia CBM Block

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

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

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

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

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

17.1.2 Raniganj CBM Block

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

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

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

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

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

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

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

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

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

17.3 Commercial development of Coal Mine Methane (CMM)

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

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

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

17.4 Assessment of CMM potential related to large opencast mines

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

17.5 Activities taken up by CBM Lab

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

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

17.6 CMM/CBM Clearinghouse in India

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

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

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

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

17.6.1 Participation of CMPDI officials in GMI EXPO-13:

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

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

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

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

19. Delineation and preparation of Data-dossiers for DGH

19.1 Preparation of Data Dossiers for CBM Round V

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

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

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

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

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

20. R&D and S&T Projects

20.1 EU funded Research Project

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

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

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

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

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

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

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

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

21. Geological Exploration & Drilling

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

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

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

21.1 Drilling Performance in 2012-13

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

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

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

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

Agency Target Performance of Exploratory Drilling in 2012-13 2012-13 (metre) Achieved Achieved +/- (metre) (%) (m)

A.Detailed Drilling by CMPDI:

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

ii. Outsourcing:

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

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

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

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

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

Total A: 5,82,000 5,62,908 97% -19,092

B. Promotional Drilling in Coal Sector:

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

GSI 13,750 14,702 107% +952

DGM, Nagaland 500 328 66% -172

DGM, Assam 500 0 - -500

CMPDI 3000 0 - -3000

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

Agency Achieved Growth Prev. Year: % 2011-12 (m)

Detailed Drilling by CMPDI:

Departmental 2,73,018 1%

Outsourching

State Govts. 6,815 9%

MECL (MOU) 96,207 44%

Tendering (CIL blocks) 17,605 416%

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

Total Outsourcing 2,25,406 27%

Total A 4,98,424 13%

Promotional Drilling in Coal Sector

MECL 25,997 18%

GSI 17,872 -18%

DGM, Nagaland 289 14%

DGM, Assam 0 -

CMPDI - -

Total B 44,158 3%

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

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

21.2 Geological Reports:

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

22. OUTSIDE - CIL CONSULTANCY SERVICES:

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

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

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

23. RESEARCH & DEVELOPMENT PROJECTS

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

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

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

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

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

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

23.2 Physical performance

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

i) Projects on-going as on 1.4.2012 14

ii) Projects sanctioned during 2012-13 04

iii) Projects completed during 2012-13 03

iv) Projects on-going as on 1.4.2013 15

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

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

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

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

23.3 Financial status

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

(Rs. in crores)

2011-12 2012-13

RE Actual RE Actual

10.62 9.64 11.40 11.53



23.4 CIL R&D Projects

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

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

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

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

i) Projects on-going as on 1.4.2012 - 24

ii) Projects sanctioned during 2012-13 - 05

iii) Projects completed during 2012-13 - 06

iv) Projects on-going as on 1.4.2013 - 23

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

i) GPS based production reporting system in OCP

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

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

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

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

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

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

24. TELECOMMUNICATION SYSTEM

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

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

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

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

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

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

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

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

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

25. MINES SAFETY

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

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

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

- Collective commitment and synergies shown by the management and workers

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

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

- Strong oversight and assistances from various quarters.

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

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

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

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

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

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

Sl. No. Parameters 2011 2012

1 Numbers of fatal accidents 51 53

2 Numbers of fatalities 53 56

3 Numbers of serious accidents 242 183

4 Numbers of serious injuries 256 189

5 Fatality Rate per million ton of coal production 0.13 0.12

6 Fatality Rate per 3 lakhs manshift deployed 0.19 0.20

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

8 Serious injury Rate per 3 lakhs man shift deployed 0.90 0.68

Note: 1. Accident Statistics are maintained calendar year-wise in conformity with DGMS practice

2. All figures are subject to reconciliation with DGMS

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

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

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

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

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

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

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

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

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

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

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

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

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

A. Mining Operation:

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

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

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

- Higher capacity HEMMs is being used.

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

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

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

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

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

- Use of more number of mechanised roof drilling machines.

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

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

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

C. Spontaneous heating, fire & explosion in mine:

- Expedite construction of sectionalisation stoppings.

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

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

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

D. Opencast Safety:

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

- Training Simulator for training of dumper operators.

- Installation of Proximity devices in dumpers

- Using rear view camera in tippers and dumpers

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

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

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

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

F. Occupational Health Services:

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

- Organizing Wellness Clinic at different subsidiary,

- Free health examination of all the contractual workers.

- Organizing Conference on Occupational Health to enhance awareness.

G. Safety Training & Others:

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

- Digitization of mine plan.

- Introduction of LED type light weight cap lamp

26 MINES RESCUE SERVICES

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

27. HUMAN RESOURCE DEVELOPMENT

27.1 Overall Performance

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

27.2

i) In-house Training

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

Category Training Short Training Workshop/ Total Seminar

Executive 6229 4654 5006 15889

Non-executive 28718 9409 660 38787

Total 34947 14063 5666 54676

ii) Training Outside Company (Within the Country)

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

Category Training Short Training Workshop/ Total Seminar

Executive 1390 847 402 2639

Non-executive 800 65 329 1194

Total 2190 912 731 3833

iii) Training Abroad

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

27.3 Initiatives

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

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

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

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

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

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

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

28. MANPOWER

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

Company As on Total

ECL 31.03.2013 74276

31.03.2012 78009

BCCL 31.03.2013 61698

31.03.2012 64884

CCL 31.03.2013 48126

31.03.2012 50026

WCL 31.03.2013 54960

31.03.2012 56989

SECL 31.03.2013 73718

31.03.2012 76078

MCL 31.03.2013 22065

31.03.2012 22023

NCL 31.03.2013 16073

31.03.2012 16329

NEC 31.03.2013 2376

31.03.2012 2538

CMPDIL 31.03.2013 3142

31.03.2012 3129

DCC 31.03.2013 551

31.03.2012 562

CIL(HQ) 31.03.2013 941

31.03.2012 979

CIL as a whole 31.03.2013 357926

31.03.2012 371546

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

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

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

1.1.2012 374650 77885 20.79 45424 12.12

1.1.2013 361348 74780 20.69 43342 11.99

29 INDUSTRIAL RELATIONS AND EMPLOYEES PARTICIPATION IN MANAGEMENT

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

Strikes and Bandhs

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

STRIKES AND BANDHS

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

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

ECL 2+0 2+1 31 6

BCCL 2+0 2+1 5 7

CCL 2+0 2+1 110 61

WCL 2+0 2+1 0 2

SECL 2+0 2+1 0 0

NCL 2+1 2+1 0 12

MCL 2+0 2+1 0 0

NEC 2+0 2+1 0 0

CMPDI 2+0 2+1 0 0

CIL 2+0 2+1 0 0

Total 2+1* 2+1 146 88

Company Mandays lost Production Lost

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

ECL 41462 27427 71000 24100

BCCL 6935 7557 9825 19700

CCL 30801 4165 118976 00

WCL 32937 40366 90976 201800

SECL 49563 56571 93362 239000

NCL 10843 1769 116000 73500

MCL 16758 1617 309300 00

NEC 1737 198 600 00

CMPDI 1347 677 503 00

CIL 00 60 00 00

Total 192383 140407 810542 558100

Bandh- On 31.5.2012, All Political Parties called 24 hours Bharat Bandh on political issue/price hike.

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

30. EMPLOYEES WELFARE AND SOCIAL SECURITY SCHEMES EMPLOYEES WELFARE

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

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

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

The objective of the policy are as under:-

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

3) HOUSING:

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

4) WATER SUPPLY:

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

5) MEDICAL FACILITIES:

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

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

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

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

6) EDUCATIONAL FACILITIES:

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

Coal India Scholarship Scheme (Revised - 2001)

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

Scholarship:

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

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

ECL 1165 61

BCCL 1502 17

CCL 1520 16

WCL 4936 97

SECL 3196 198

MCL 1508 56

NCL 956 105

CMPDIL 327 24

Total 15110 574

Grant sanctioned for Schools:

Company Amount (Figs. in Lakh Rs.)

ECL 30.00

BCCL 85.50

CCL 1984.00

WCL 888.00

SECL 4238.00

MCL 1551.17

NCL 28.23

CMPDIL 1.00

Total 8805.90

7) Statutory Welfare Measures:

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

8) Non-statutory Welfare Measures:

Co-operative Stores and Credit Societies:

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

9) Banking Facilities:

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

10) Welfare, Development and Empowerment of Women

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

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

11) Corporate Social Responsibility (CSR):

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

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

12) Special Cash Award:

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

13) Recreational facilities:

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

14) CIL Welfare Board Meeting.

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

31. TREE PLANTATION/ AFFORESTATION.

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

32. PROGRESSIVE USE OF HINDI.

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

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

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

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

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

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

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

33. VIGILANCE SET UP

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

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

Whistle Blower Vigilance Complaint At Coal India limited :

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

34. PARTICULARS OF EMPLOYEES.

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

35. BOARD OF DIRECTORS

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

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

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

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

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

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

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

36. DIRECTORS RESPONSIBILITY STATEMENT

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

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

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

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

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

37. ACCOUNTS OF THE SUBSIDIARIES.

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

38. COST AUDIT

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

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

39.1 Eastern Coalfields Limited (ECL)

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

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

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

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

39.2 Bharat Coking Coal Limited (BCCL)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(c) Annual cumulative dividend is 5%.

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

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

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

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

40. ACKNOWLEDGEMENT:

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

41. ADDENDA

The following are annexed.

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

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

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

iv) Foreign Exchange Earning and Outgo (Annexure I)

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

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

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

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

Chairman

Kolkata, 1st July, 2013


Mar 31, 2011

The Members,

On behalf of the Board of Directors, I have great pleasure in presenting to you, the Thirty-seventh Annual Report of Coal India Limited (CIL) and Audited Accounts for the year ended 31 st March, 2011 together with the reports of Statutory Auditors and the Comptroller and Auditor General of India thereon.

Coal India Limited (CIL) is a 'Maharatna' Public Sector Undertaking under Ministry of Coal, Government of India with headquarters at Kolkata, West Bengal. CIL is the single largest coal producing company in the world and the largest corporate employer with a manpower of 383347 (as on 31st March, 2011). CIL operates through 81 mining areas spread over 8 provincial states of India. CIL has 471 mines of which 273 are underground, 163 opencast and 35 mixed mines. CIL further operates 17 coal washeries, (12 coking coal and 5 non-coking coal) and also manages 200 other establishments like workshops, hospitals etc. CIL has 26 training Institutes. Indian Institute of Coal Management (IICM) as a 'Centre of Excellence' operates under CIL and imparts multi disciplinary Management Development Programmes to executives. Coal India's major consumers are Power and Steel sectors. Others include Cement, Fertiliser, Brick Kilns and a host of other industries.

During the year the company continued to have eight fully owned

Indian subsidiary companies viz.:

Eastern Coalfields Limited (ECL),

Bharat Coking Coal Limited (BCCL),

Central Coalfields Limited (CCL),

Western Coalfields Limited (WCL),

South Eastern Coalfields Limited (SECL),

Northern Coalfields Limited (NCL),

Mahanadi Coalfields Limited (MCL) and

Central Mine Planning & Design Institute Limited (CMPDIL).

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

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

MCL has two subsidiaries viz. MNH Shakti Ltd. and MJSJ Coal Ltd. with 700/c and 60 % equity holding respectively.

1.0 NOTABLE ACHIEVEMENTS

1. Maharatna Status to Coal India

On 11th April'2011, Govt, of India had conferred Coal India Ltd. "Maharatna Status". Chairman, CIL received the certificate from Her Excellency 'The President of India' in a function organised by SCOPE and Department of Public Enterprises at New Delhi.The Maharatna status provides greaterfinancial autonomy to expand operations both domestically and globally. In fouryears' time from a normal profit making PSU, CIL became Mini Ratna, Navaratna and Maharatna. '

2. Coal India's IPO - a resounding success

21st October 2010, thedayCIL's IPO closed, would be etched as a historic event in the annals of Coal India Limited. The day unravelled the value and the true potential of CIL. Innumerable road shows involving countless man hours of effort across the country and in US, Europe and other markets had resulted in the grand success of CIL's IPO. CIL's IPO the largest so far in Indian capital market was over- subscribed 15.2 times. The resounding success of record breaking result of the company's public offer with the aggregate funds amounted to Rs. 2,35,276.55 crores was so far unheard of in the Indian capital market. The over- subscription of the issue happened in all the three major segments i.e. Qualified Institutional Buyers (QIB), High Networth Individuals (HNI) and Retail. The QIB for which there was a reservation of 50% of the net issue of the shares, the over-subscription was as much as 24.62 times. Around 784 QIB investors had put in over US dollar 38 billion i.e. Rs.171469.64 crores which by itself is also an all time high in the history of Indian IPO. In the retail segment nearly 16.36 lakhs applications were received - the highest among all PSU IPOs so far amounting to Rs. 63639.26 crores. This is also the highest so far in the Indian capital market. Interestingly, the foreign investors alone had put in around US $ 27 Billion which is equal to first ten months of FN investment in India this year.

3. Coal India's IPO gets top grading

CRISIL the leading credit rating agency in the country had assigned maximum grading of 5 to CIL's IPO - the best for any public sector. The grading indicated that the fundamentals of the IPO were strong compared to other listed securities in the country. Similar grading was given by other credit rating agencies like ICRA & CARE. Not many companies have this kind of rating.

4. Coal India Shares listed in Stock Exchanges

4th November 2010, CIL's stock was listed in stock exchanges i.e. BSE and NSE. It was a historic day for CIL CIL share was listed at Z29V- and closed over Rs. 342/- on the first day of trading against the offer price ofRs. 245/, Most importantly, a national asset was offered to public as "peoples' ownership" inPSUs.

On 17th May, 2011, CIL became the most valuable PSU with a market capitalisation ofRs. 2.51 lakh crore. CIL also became the second highest market capitalization company in India from that date. BSE has announced on 17th June, 2011 to include CIL's shares in its benchmarkSensex from 8th August, 2011.

5. Dow Jones Safe 100 Index

CIL made it to'Dow Jones SAFE 100 Index', when the leading global index provider announced the results of annual review of Dow Jones SAFE 100 Index, on 10 March 2011 in New York. CIL is one among the 5 Indian companies to have made it to the Index. The Dow Jones SAFEIOOIndex measures the performance of 100 blue-chip companies in five of the eight member states of the South Asian Federation of Exchanges (SAFE).

6. FE500

CIL had featured in "FE 500" a Financial Express Research Bureau Project brought out by 'The Indian Express', a news daily in March 2011. In fact, CIL is among the super league oftoP10firmsandoccupiesacompositerankof5(for2010). In terms of Gross Profit CIL is ranked 5th and CIL had also entered the top 10 in terms of market capitalization.

7. Coal India and Shipping Corporation of India sign MoU

In order to bridge the increasing gap between availability from domestic production of CIL and quantity committed through Fuel Supply Agreements and Letter of Assurances already issued, which is likely to touch 250 million tonnes by the end of XII Plan, CIL has planned to import coal for supply to its consumers. CIL is in process of sourcing coal through long-term off-take contracts with overseas mining companies, apart from acquisition of mining properties abroad.

Currently imported coal is supplied by both private and PSU players at consuming ends, particularly to power stations, with comprehensive quality and quantity assurance, whereas, in case of indigenous coal, CIL's term of sale is Free on Rail at Colliery. In order to create comprehensive end-to-end logistic solution from load port to consuming end, CIL signed a Memorandum of Understanding with The Shipping Corporation of India Limited in December 2010for promoting a Joint Venture Company (JVC). Primary objective of the JVC are i) Owning/chartering of vessels ii) Draft surveying iii) Inspection of cargo iv) Stevedoring at unloading port in India including

unloading of vessels, customs clearance, shore clearance and stacking v) Indenting wagons from railways, loading of wagons, quality analysis and delivery of coal at power stations

8. CMPDIsetsupaLab

Central Mine Planning & Design Institute, Ranchi based Mine Consultancy subsidiary of Coal India Limited had established a Cement and Resin Capsule Testing Lab, which was inaugurated on 15th August'10. It will help in testing and establishing the quality of cement and resin capsules which enhances the safety in underground mines.

9. Coal India scholarship for Below Poverty Line Students

Coal India Limited as a part of its CSR activity had introduced Coal India Scholarship' to 100 Below Poverty Line (BPL) students and 25 wards of land losers to pursue Engineering in NTs, NITs, select Government Engineering colleges and Medical in Central Government Medical colleges. The scholarships, which will be awarded every year, came into effect from the academic session 2010-11 onwards. The scholarship covers cost of the education, hostel fees, incidental fee to the tune of Rs.10000 per year. This is being done on pan India basis.

Awards & Accolades for Coal India Limited in 2010-11

CQE International Award: CIL bagged a prestigious International Award in Geneva on 7th March 2011. CIL was conferred with the "Century International Quality ERA Award (CQE)" in the Gold Category in recognition of commitment to Quality, Leadership, Technology and Innovation. It was stated that Coal India represents success for India in the Business world. The awards were given by Business Initiative Directions (BID) - a leading private organization focused on the Quality Mix Plan.

CMPDI SCOPE Meritorious Award: Central Mine Planning and Design Institute Limited (CMPDIL), the Mini Ratna consultancy arm of Coal India Limited had bagged the prestigious "SCOPE Meritorious Award for R&D, Technology Development&lnnovation"fortheyear2009-10.lncidentally, CMPDIL is the first subsidiary of CIL to have been awarded coveted SCOPE trophy.

National Geo-Science Award to Shri N C Jha: Shri N C Jha Chairman, Coal India Limited was conferred the coveted "National Geo-Science Award", in February 2011 (then Director - Technical, CIL), instituted by Ministry of Mines, Government of India. The award was presented by Shri Hamid Ansari, Hon'ble Vice-President of India.

National Award to Shri Partha S Bhattacharyya: Shri Partha S Bhattacharyya, (the then) Chairman, Coal India Limited was conferred with the coveted National Award in the Corporate Excellence category on 13th January 2011 at Siri Fort Auditorium, New Delhi in an award function organized by 'Ramakrishna - Vivekananda International Foundation'.

SCOPE Special Jury Award to Shri Partha S Bhattacharyya:

Sri Partha S Bhattacharyya, (the then) Chairman, Coal India Limited on 15th December 2010 received the coveted "SCOPE Special Award of the Jury" from Dr. Manmohan Singh, Hon'ble Prime Minister of India in an official award ceremony "MoU Excellence Awards & SCOPE Excellence Awards 2008- 09" held in New Delhi. The function was jointly organized by Department of Public Enterprises and Standing Conference of Public Enterprises (SCOPE).

India Pride Awards: CIL was conferred with "India Pride Awards 2010" in two categories that the company had participated in. CIL received the Gold Trophy in 'Energy & Power' category and Silver Trophy in CSR & Environment' category. The awards have been initiated by Dainik Bhaskar, a leading Hindi language media house along with DNA - the English language news daily, aimed to recognize the outstanding contribution made by PSUs.

Shenhua Cup: CIL had won five medals at the Shenhua Cup, an international mining skill competition held in China, organized by Shenhua Group Corporation Limited, the largest coal company in China. Coal India won one Gold medal in 16G Grader, three silver medals in D 475A Dozer, DMH Drill and in underground continuous miner and one bronze medal in Longwall.

National President NIPM, Shri R Mohan Das: Sri R. Mohan Das, Director (Personnel & Industrial Relations), CIL has been elected as National President of NIPM (National Institute of Personnel Management) in their National Council biennial election for the year 2010-12.

HR Awards: CIL has bagged five awards for its Human Resources Practices at Asia's Best Employer Brand Awards at Suntec Centre in Singapore. While (the then) Chairman, CIL, Shri Partha S Bhattacharyya was honoured with " CEO with HR Orientation Award", Shri R Mohan Das, Director- (Personnel & Industrial Relations), CIL was bestowed with "HR Leadership Award" for his contribution in the field of Human Resources. In the organizational category, CIL received awards for its best HR Strategy in line with Business, Continuous innovation in HR Strategyat workand Excellence in Training.

Industrial Relations Award: CIL was conferred the "Best Practices in Industrial Relations Award (IR)" for 2010-11 in an Annual Awards function organized by Hooghly Chamber of Commerces Industry. CIL bagged the award in recognition of its commendable efforts in managing its IR functions.

CM President's Award: Sri Partha S Bhattacharyya, (the then) Chairman,Coal India Limited, was awarded the Confederation of Indian Industry (CM) President's Award for Outstanding Contribution to CM for 2009-10 at a function in New Delhi on 11 May 2010.

2.0 FINANCIAL PERFORMANCE

2.1 Financial Results

CIL is one of the largest profit making, tax and dividend paying enterprises. CIL and its subsidiaries have achieved an aggregate pre-tax profit of Rs.16463.23 crores in the year 2010-11 against a pre-tax profit of Rs.13964.93 crores in the year 2009-10.

Company-wise position with regard to profit ( ) earned or loss (-) during 2010-11 vis-a-vis in 2009-10 are given in the table appended below:-

Figuresin Rs. crores

Company 2010-11 2009-10

Profit ( )/ Loss (-) Profit ( )/ Loss (-)

ECL ( ) 106.57 ( ) 333.40

BCCL ( ) 1093.69 ( ) 793.93

CCL ( ) 1860.22 ( ) 1533.05

NCL ( ) 3956.36 ( ) 3766.30

WCL ( ) 1067.97 ( ) 931.02

SECL ( ) 3777.12 ( ) 3063.57

MCL ( ) 4039.30 ( ) 2953.90

CMPDIL ( ) 23.69 ( ) 19.61

CIL/NEC ( ) 4723.37 ( ) 3870.40

Sub-Total < > 20648.29 < > 17265.18

Less: Dividend from Subsidiries (-) 4237.41 (-) 3367.36

Total < > 16410.88 < > 13897.82

Adjustment for deferred

Revenue incomes ( ) 52.35 ( ) 67.11

Overall Profit as per Consolidation of Accounts ( ) 16463.23 ( ) 13964.93

(-) Recognition of revenue in respect of interest claim and apex charges attributable to BCCL in years' account have been deferred by CIL in consistence with the provision of AS-9 of ICAI of Revenue Recognition.

Highlights of Performance

The highlights of performance of Coal India Limited including its Subsidiaries in the year 2010-11 compared to previous two years are shown in the table below:

2010-11 2009-10 2008-09

Production (in million tonnes) 431.32 431.26 403.73

Off-take ofCoal (in million tonnes) 424.50 415.96 401.46

Sales (Gross) (Rs./Crores) 60245.21 52187.79 46131.24

Gross Profit (Rs./Crores) 16525.15 14101.39 5900.60

Capital Employed (Rs./Crores) 30745.03 23450.74 16963.98

Net Worth (Rs./Crores) 33313.82 25793.68 19165.04

Profit before Tax (Rs./Crores) 16463.23 13964.93 5744.10

Profit after Tax (Rs./Crores) 10867.35 9622.45 2078.69

Gross Profit /Capital Employed (in %) 53.75 60.13 34.78

Profit before Tax/ Net Worth (in %) 49.42 54.14 29.97

Profit afterTax/ Net Worth (in %) 32.62 37.31 10.85

Earning Per Share (Considering Face Value of Rs. 10 pershare) 17.19 15.22 3.28

Dividend per Share

(Considering FaceValue ofRs. 10 pershare) 3.90 3.50 2.70

Coal Stock (Net) (in terms of No. of months of net sales) 1.06 0.86 0.77

Sundry Debtors (Net) (in terms of No of months of gross sales) 0.60 0.49 0.46

Note :The Consolidated Accounts have been prepared according to the provisions of the Accounting Standard -21 on "Consolidated Financial Statements" issued by the Institute of Chartered Accountants of India. Since the non-recognition of interest etc. in Holding Company's Accounts, from one of its subsidiaries (as per Accounting Standard - 9) has been ignored in such consolidation, the profit shown in Consolidated Accounts may be read with such deviation.

2.2 Dividend Income and Pay Outs

Dividend income of CIL accounted for during the year under review, based on the recommendations from five profit making subsidiaries namely, CCL, NCL, WCL, SECL and MCL was Rs. 4237.41 crores as against dividend of W367.36 crores in previous year, the subsidiary- wise break-up of which are as under:-

Rs.In Crores Name of the Subsidiary

CCL 386.32

(195.97) NCL 1295.06

(1176.56) WCL 387.42

(201.26) SECL 1099.60

(753.57) MCL 1069.01

(1040.00)

Figures in brackets are for previous year.

Your Directors recommended dividend payment ofRs. 2463.38 crores @ Rs. 3.90 (approx) per share on 6316364400 Equity Shares of Rs. 10/- each fully paid valued at Rs. 6316.36 crores. Out of total dividend, Govt of India gets Rs. 2217.04 crores and other investors get Rs. 246.34 crores.

3.0 Coal Marketing

3.1 (a) Off-take of Raw Coal

Offtake of raw coal continued to maintain its upward trend and reached 424.50 million tonnes for fiscal ended March, 2011, surpassing previous highest figure of 415.96 million tonnes achieved during the last year. Although coal production growth was marginal due to environmental constraints, offtake however increased by another 2.1 % over last year. Against original offtake target which was based on production target of 460.50 million tonnes, actual off take was 92.2 %. The off-take could have improved further but for certain impediments like less availability of rolling stock in certain coal fields of MCL, SECL, deteriorating law and order situation in coalfields of CCL, MCL which played spoil sport for coal offtake in this year.

Company-wise coal off-take:

Company-wise target vis-a-vis actual off-take for 2010-11 and 2009-10 are shown below: -

(Figs. In Mt) 2010-11 2009-10 Growth over last year Company Target Achieved % Achieved Achieved Abs. %

ECL 33.00 29.74 90.1 29.19 0.55 1.9

BCCL 29.00 29.39 101.3 25.11 4.28 17.0

CCL 50.00 46.38 92.8 44.21 2.17 4.9

NCL 72.00 64.21 89.2 66.65 -2.44 -3.7

WCL 46.50 42.56 91.5 45.51 -2.95 -6.5

SECL 112.00 109.02 97.3 106.07 2.95 2.8

MCL 116.75 102.10 87.5 98.15 3.95 4.0

NEC 1.25 1.10 88.0 1.07 0.03 2.8

CIL 460.50 424.50 92.2 415.96 8.54 2.1

From above it may be seen that BCCL had not only outperformed its target but also exceeded last year's level. Barring NCL and WCL all other coal companies registered a positive growth in off-take. While in case of NCL, less availability of coal was the main contributor, in case of WCL accident in Umrer mines and consequent less production, occassional transport bottlenecks, shut down of Chandrapura power plant and consequent less dispatches are attributable to less dispatches. In case of ECL shortfall against target may be ascribed to derailment in Kahalgaon route for quite sometime and consequent less placement of MGR rakes at Rajmahal, and less availability of coal at Ranigunj. While in case of CCL, adverse law and order situation, affecting transportation of coal to sidings, less acceptance of medium coking coal by SAIL stood in the way of higher dispatches, in the case of MCL apart from law and order situation, less supply of wagons, less acceptance of coal by Talcher STPS through MGR, tooka toll in dispatches. Offtake in SECL could not go further up due to heavy rain in 2nd quarter, less supply of wagons at Korba area and less offtake of coal by private washeries.

(b) Sectorwise dispatch of coal & coal products:

Sector-wise break-up of dispatch of coal & coal products for 2010-11 against target and last year's actual is given below:

(Figs, in million tonnes)

Year 2010-11 2009-10 Growth over Last Year Sector Target Despatch %Satn. Actual Abs. %

Power (Util) 332.78 304.15 91.4 298.03 6.12 2.1

Steel 4.37 4.21 96.4 3.78 0.43 11.5

Cement 7.51 9.69 129.0 9.25 0.44 4.7

Fertilizer 3.01 2.78 92.4 2.61 0.17 6.5

Export 0.02 0.00 - 0.01 -0.01 - Others 109.82 102.61 93.4 101.46 1.15 1.1

Despatch 457.51 423.44 92.6 415.14 8.30 2.0

3.2 Dispatch of coal and coal products by various modes:

Dispatch of coal and coal products during 2010-11 went up to 423.44 million tonnes from 415.14 million tonnes registering a growth of 2o/o. Barring MGR and other modes, all other modes saw dispatches being more than last year. In case of ropeways, less availability of coal at Dudhichua and less lifting by Chandrapur powerstations affected dispatches. In case of MGR less acceptance of coal by Kahalgaon, Talcher STPS reduced chances of better dispatch. Major increase continued to be in road despatches because of increased movement of coal by road to private washeries and e-auction dispatched by road to Goods Sheds of Railways for rebooking in wagons.

Dispatch of coal and coal products by various modes for the years 2010-11 and 2009-10 is given below:

(Figs, in million tonnes)

Year 2010-11 2009-10 Growth over Last Year

Mode Target Despatch %Satn. Actual Abs. %

Rail 256.03 215.81 84.3 210.37 5.44 2.6

Road 94.24 112.35 119.2 105.63 6.72 6.4

MGR 96.54 83.62 86.6 86.58 -2.96 -3.4

Other Modes 10.70 11.66 109.0 12.56 -0.90 -7.2

Overall 457.51 423.44 92.6 415.14 8.30 2.0

3.3 Wagon Loading

Sustained efforts and regular coordination with railways at different levels saw wagon loading improve by another 306 boxes per day over last year. However in relation to target, materialization was 87.50/c. Company wise performance shows ECL, BCCL and NEC not only exceeding last years level of loading but also surpassed their target. Major deviation from target had taken place in CCL, MCL, WCL and SECL. While the loading potentials of BCCL, SECL- Korba and MCL-lb could not be utilised due to inadequate and timely supply of empty wagons, in some of the coalfields like CCL- Karanpura and MCL-Talcher desired level of rail dispatch was affected due to less transportation of coal to sidings arising out of deteriorating law & order conditions. Dispatch at WCL was also affected due to constraints in production, transportation bottleneck and shut down of ChandrapurTPS in the 1st half of the year.

Figs, in Box/Day

2010-11 2009-10 Growth over last year Company Target Achieved % Achie -ved Achieved Abs. %

ECL 749 802 107.1 755 47 6.2

BCCL 1101 1107 100.5 931 176 18.9

CCL 1782 1423 79.9 1372 51 3.7

NCL 1029 1013 98.4 980 33 3.4

WCL 916 820 89.5 969 -149 -15.4

SECL 2019 1796 89.0 1791 5 0.3

MCL 3284 2540 77.3 2402 138 5.7

NEC 37 50 135.1 45 5 11.1

CIL 10917 9552 87.5 9246 306 3.3

3.4 Consumer satisfaction

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

(ii) CIL had built up coal handling plants with a capacity of about 258 MT per annum so as to maximize dispatches of crushed/sized coal to the consumers. In addition, the washeries at BCCL, CCL, WCL and NCL have adequate crushing/sizing facilities to the tune of about 39.4 million tonnes.

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

(iv) Surface Miners have been deployed by CIL for selective mining at some of the mines to improve the quality of coal. Action is being taken for deployment of more surface miners in other mines where geo-mining condition permits. Already 24 Surface Miners have been deployed in MCL, CCL and SECL at opencast mines and are working satisfactorily.

(v) Joint sampling system is in vogue for major consuming sectors e.g. power (utilities as well as captive), steel, cement, sponge iron covering more than 95o/0 of total production of CIL. On overall basis, large consumers having annual quantity of 0.4 MT or more and having FSA have been covered for sampling. The achievement of grade conformity in respect of sampling and analysis has been to the tune of 93.3 % in respect of supplies to power sector during 2010-11. Consumers covered under the agreed sampling arrangement are required to pay as per the analyzed grade of coal. This system is working satisfactorily.

(vi) Electronic weighbridges with the facility of electronic printout have been installed at rail loading points to ensure that coal despatches are made only after proper weighment. For this purpose, Coal Companies have installed 166 weighbridges in the Railway Sidings and 474 weighbridges for weighment of trucks. Coal Companies have also taken actions for installation of standby weighbridges to ensure 100% weighment.

During 2010-11, about 98.3% of coal despatches to powerhouses have been weighed as compared to about 98.25% during 2009-10. Sized coal dispatches to powerhouses during 2010-11 had been 98.6 %compared to about 98.5% during 2009-10.

3.5 Steps Taken Towards Liberal Marketing of Coal:

Almost all provisions contained in New Coal Distribution Policy have been successfully implemented by CIL. Status of implementation of different provisions under New Coal Distribution Policy (NCDP) is as under:

(i) At the end of March, 2011, against 306 million tonnes allocated by CEA for all power stations existing and drawing coal as on 31.3.09, total quantity covered under FSA had been 286.335 million tonnes thereby showing a materialization of 94%. Regular follow up was made with concerned power utilities to ensure that entire quantity gets covered under FSA. Apart from above, for new power stations (post NCDP) who are to draw coal through Letter of Assurance (LOA) route followed by FSA/ MOU, a quantity of 9.932 million tonnes per annum is the entitlement. Further, power stations having pre NCDP linkage are also entitled to draw coal under MOU for a quantity of 20.299 million tonnes per annum.

(ii) Out of 1211 valid linked units other than power and steel plants with eligible FSA quantity of 64.95 million tonnes, 1189 units have executed FSAs for 64.27 million tonnes.

(iii) For supply of coal to SME sector, 8 million tonnes was earmarked by CIL for allocation to agencies nominated by the State Govts/ UTs. During the current fiscal, 21 states / UTs sent their nomination of 28 state agencies for the year 2010-11 of which 23 state agencies have signed FSA for 4.1 million tonnes and drawing coal accordingly.

iv) After implementation of NCDP, 658 new consumers in power, sponge iron, Captive power and cement sector were served notices with a request to deposit commitment guarantee (CG) out of which 543 units submitted CG. 539 units were issued LOA for completion of necessary milestones. 277 units completed their milestones and executed FSAs.

(v) In case of those new Consumers who are not covered by SLC (LT), allocation of coal through LOA route has been kept on hold due to limited coal availability after meeting contractual obligations of existing consumers and new consumers covered under SLC (LT) through LOA route. Consumption norms developed by Central Industrial Mining & Fuel Research are also under process of finalization. Model LOAs developed for consumers not covered under SLC (LT) are also yet to be approved.

(vi) After sustained efforts, Forward E Auction scheme is gradually getting stabilized. During the year ended March, 2011, quantity allocated through auction was 5.61 million tonnes as against 0.55 million tonnes allocated in last year. No. of bidders who participated also went up to 264 from 22 in last year. The quantity allocated under spot e auction also maintained its rising trend. During the period under review, 46.56 million tonnes of coal was allocated under spot e- auction to the successful bidders as against 45.73 million tonnes of coal allocated last year. The margin earned over notified price for sale through E-auctions also improved to 8O.70/0 during the year as compared to 59.8% during last year thereby showing the popularity of the scheme.

3.6 Coal Beneficiation

In order to supply improved quality and sized coal, CIL operates 17 coal washeries with a total capacity of 39.4 Mty. Out of these, 12 are coking coal washeries with a total capacity of 22.18 Mty and 5 are non coking coal washeries with a total capacity of 17.22 Mty. Considering the increasing demand for washed coal and drive for a cleaner environment, CIL has initiated action through Global tender to establish 20 coal washeries with a total capacity of 111.1 Mty, out of which 6 are coking coal washeries with a total capacity of 19.1 Mty and 14 are non coking coal washeries with a total capacity of 92.00 Mty.

3.7 Stock of Coal, Coke etc.

Net adjusted value of the pithead stock of coal and other products at the close of the year 2010-11 after provision for stock deterioration etc. was Rs.4439.82 crores, which was equivalent to 1.06 month value of net sales. The company-wise position of stocks held on 31.03.2011 and on 31.03.2010 are given below:

Figures in Rs. Crores

Net Value of stock Net Value of stock Stock in terms of no. of months of Net Sales

Company as on 31.03.2011 as on 31.03.2010 As on 31.03.11 As on 31.03.10

ECL 430.58 320.68 0.88 0.74

BCCL 1025.94 852.70 2.00 2.27

CCL 1292.31 1006.38 2.57 2.20

NCL 199.81 75.05 0.31 0.12

WCL 360.37 218.26 0.72 0.45

SECL 624.63 348.25 0.70 0.45

MCL 473.47 340.99 0.76 0.65

NEC/CIL 32.71 24.17 0.95 0.72

Total 4439.82 3186.48 1.06 0.86

3.8 Coal Sales Dues

Net Coal Sales dues outstanding as on 31.03.2011 after providing of Rs. 1484.52 crores (previous year Rs. 1453.75 crores) for bad and doubtful debts, was Rs. 2979.83 crores (previous year Rs. 2110.42 crores) which is equivalent to 0.60 months combined gross sales of CIL as a whole ( previous year 0.49 months). Subsidiary-wise break-up of coal sale dues outstanding as on 31.03.2011 as against 31.03.2010 are shown below:-

Figures inRs. Crores

Coal Sales dues Coal Sales dues

Company as on 31.03.2011 as on 31.03.2010

Gross Net Gross Net

ECL 1044.61 959.20 840.86 746.79

BCCL 1131.47 618.13 849.67 393.80

CCL 1461.94 941.64 1008.18 512.45

NCL 104.66 99.40 128.25 123.00

WCL 147.37 25.20 263.31 109.18

SECL 461.23 255.33 434.47 212.35

MCI 102.30 80.92 28.66 12.83

NEC/CIL 10.77 0.01 10.77 0.02

Total 4464.35 2979.83 3564.17 2110.42

3.9 Payment of Royalty, Cess and Sales Tax, Stowing Excise Duty & Entry Tax During the year 2010-11, CIL and its Subsidiaries paid/adjusted Rs. 9923.27 crores (previous year Rs. 7499.94 crores) towards Royalty, Cess, Sales Tax and other levies as detailed below:-

Figures in Rs. Crores

2010-11 2009-10

Royalty 4799.52 4697.68

Cess & Others 1339.07 804.86

Sales Tax/ VAT 1757.81 1542.20

Stowing Excise Duty 424.36 410.41

Central Excise Duty 233.49 --

Clean Energy Cess 1286.61 --

Entry Tax 82.41 44.79

Total 9923.27 7499.94

4. Coal Production

4.1 Raw coal production

Production of raw coal during 2010-11 was 431.32 million tonnes as against 431.26 million tonnes produced in 2009-10. The company- wise production is given below:

(Figures in million tonnes)

Company Coking Non-Coking Total

2010-11 2009-10 2010-11 2009-10 2010-11 2009-10

ECL 0.05 0.06 30.75 30.00 30.80 30.06

BCCL 25.29 19.16 3.72 8.35 29.01 27.51

CCL 15.45 16.21 32.07 30.87 47.52 47.08

NCL 0.00 0.00 66.25 67.67 66.25 67.67

WCL 0.40 0.55 43.25 45.19 43.65 45.74

SECL 0.16 0.15 112.55 107.86 112.71 108.01

MCL 0.00 0.00 100.28 104.08 100.28 104.08

NEC 0.00 0.00 1.10 1.11 1.10 1.11

CIL 41.35 36.13 389.97 395.13 431.32 431.26

4.2 Production from underground and opencast mines.

Coal production from underground mines in 2010-11 was 40.02 million tonnes compared to 43.25 million tonnes in 2009-10. Production from open cast mines during 2010-11 was 90.7% of total coal production. Company-wise production is as under:

(Figures in Million tonnes)

Company Underground Production Opencast Production Total Production

2010-11 2009-10 2010-11 2009-10 2010-11 2009-10

ECL 7.37 8.23 23.43 21.83 30.80 30.06

BCCL 3.70 3.90 25.31 23.61 29.01 27.51

CCL 1.27 1.47 46.25 45.61 47.52 47.08

NCL 0.00 0.00 66.25 67.67 66.25 67.67

WCL 8.71 9.62 34.94 36.12 43.65 45.74

SECL 16.80 17.83 95.91 90.18 112.71 108.01

MCL 2.17 2.20 98.11 101.88 100.28 104.08

NEC 0.002 0.00 1.10 1.11 1.10 1.11

CIL 40.02 43.25 391.30 388.01 431.32 431.26

4.3 Hard Coke and Washed Coal (Coking) Production

Subsidiary-wise production of Hard coke and Washed coal (coking) is given below:

(Figures in lakh tonnes)

Company Hard Coke Washed Coal(Coking)

2010-11 2009-10 2010-11 2009-10

ECL - - - -

BCCL 0.00 0.00 15.49 13.26

CCL - - 14.53 13.92

NCL - - - -

WCL - - 1.91 2.46

SECL - - - -

MCL - - - -

NEC - - - -

CIL 0.00 0.00 31.93 29.64

4.4 Overburden Removal

Overburden removed during 2010-11 was 732.13 million cubic meters as against 682.03 million cubic meters in 2009-10 thereby recording a growth of 7.3%. Company-wise details of overburden removal is shown below:

(Figures in Million Cubic Mtrs.)

Company 2010-11 2009-10

ECL 56.25 49.74

BCCL 83.23 61.63

CCL 62.52 56.05

NCL 182.22 177.98

WCL 115.83 133.97

SECL 137.57 129.80

MCL 88.70 66.07

NEC 5.81 6.79

CIL 732.13 682.03

5. Population of Equipment

The population of major Opencast Equipment (Heavy Earth Moving Machinery) as on 1.4.2011 and on 1.4.2010 alongwith their performance status in terms of availability & utilisation expressed as percentage of CMPDIL norm is tabulated below:

Equipment No. of Equipment Indicated as % of CMPDIL Norm As on As on Availability Utilisation 1.4.2011 1.4.2010 2010-11 2009-10 2010-11 2009-10

Dragline 40 40 92 92 91 99

Shovel 754 747 90 91 78 85

Dumper 3217 3366 99 99 70 73

Dozer 981 991 93 92 59 60

Drill 709 713 98 99 74 77

6. Capacity Utilisation

SYSTEM CAPACITY UTILISATION

The overall system capacity utilisation of CIL as a whole for the year 2010-11 was 89.31 %. It was 90.25 % during 2009-10. Subsidiary- wise details in term of percentage vis-a-vis preceding year was as under:

in%

Company 2010-11 2009-10

ECL 94.88 97.58

BCCL 115.78 94.46

CCL 94.88 91.72

NCL 71.68 76.23

WCL 92.94 113.19

SECL 105.39 98.32

MCL 83.20 80.55

NEC 66.66 76.93

Total CIL 89.31 90.25

8 PROJECT FORMULATION:

8.1 Preparation of Reports (PR): As prioritized by subsidiary companies of Coal India Limited, preparation of Project Reports for new/expansion/re-organization mines was carried out during the year 2010-11 for building additional coal production capacity. Revision of PRs/Cost Estimates for projects was also taken up along with the new PRs. Thrust was laid on preparation of reports for identified Projects of XI Plan & Master Plans of various coalfields. An exercise was also carried out for identification of XII plan projects.

Other Important jobs undertaken during the year:

1. Feasibility reports/Conceptual reports and customization of bid document for coal washeries.

2. Operational plans for large OC mines.

3. Environment management plans.

4. Mine closure plan.

5. Reports for dealing with fire.

6. Detailed designing & drawing, NIT, tender scrutiny.

7. Mine capacity assessment of UG & OC mines of CIL

8. Technical studies related to operation of UG & OC mines of CIL.

9. Performance analysis of HEMMs.

10. Preparation of global bids for deployment of Continuous Miner, PSLW, High speed Incline drivage & shaft sinking in UG mines of CIL.

11. Preparation of Model Bid Document & Conceptual report for setting up of FBC based thermal power plants using washery rejects.

Expert consultancy services: During the year 2010-2011, expert consultancy services were also provided to subsidiary companies of Coal India Limited in the field of Environmental Management and Monitoring, Remote Sensing, Energy Audit (Diesel & Electrical), Benchmarking of Diesel & Electrical Consumption and Fixation of Diesel & Electrical Consumption norms of Opencast and Underground mines, Physico-mechanical tests on Rock and Coal Samples, Subsidence Studies, Strata Control, Non-Destructive Testing (NDT), Controlled Blasting & Vibration Studies and Explosive Utilization, Ventilation / Gas Survey of UG mines, Mining Electronics, Petrography and Cleat Study on coal samples, Coal Core Processing & Analysis, Washability tests, OBR Survey, Man Riding System, Soil Erosion Study, Effluent Treatment Plants & Illumination Survey etc.

In all, during the year under review, CMPDI had prepared 383 reports which included 19 Geological Reports, 37 Project Reports/Revised Cost Estimates, 14 Operation Plans, 162 Other Reports and 151 Environment Management Plans (including 126 applications as per Form-I for EMP clearance).

7. Productivity: Output per Manshift (OMS)

Output per Manshift (OMS) during 2010-11 improved to 4.73 Tonnes from 4.47 Tonnes of previous year. Company-wise position is given in the following table:

(Figures in Tonnes)

Company Underground OMS Opencast OMS Overall OMS

2010-11 2009-10 2010-11 2009-10 2010-11 2009-10

ECL 0.45 0.47 8.14 7.29 1.60 1.46

BCCL 0.39 0.39 5.64 4.85 2.09 1.85

CCL 0.34 0.35 5.45 5.24 3.88 3.66

NCL 0.00 0.00 13.52 13.19 13.52 13.19

WCL 1.09 1.12 4.13 4.12 2.65 2.64

SECL 1.32 1.33 20.22 18.89 6.47 5.96

MCL 1.25 1.29 20.50 18.89 15.37 14.66

NEC 0.004 0.00 7.10 7.85 2.16 2.00

CIL 0.77 0.78 10.06 9.51 4.73 4.47

8.2 PROJECT IMPLEMENTATION:

(a) The following 6 coal projects, each costingRs. 20 crores& above, with ultimate capacity of 13.65 Mty and sanctioned capital of Rs. 314.18 Crs. were completed during 2010-11:

SL. Cos Name of Projects Type Sanctioned Capacity (MTY) Sanctioned Capital
1 SECL SEAM III ANJAN HILL UG 0.42 46.75

2 SECL JHIRIA UG 0.33 32.07

3 SECL CHAAL OC 3.00 50.38

4 SECL GAYATRI UG 0.30 21.92

5 MCL BASUNDHARAWESTEXPN OC 4.60 46.52

6 MCL LAKHANPURPHII OC 5.00 116.54

TOTAL 13.65 314.18

(b) Another 8 coal projects, each costing Rs. 20 crores & above, with an ultimate capacity of 15.88 Mty and sanctioned capital of Rs. 956.81 Crs. had started contributing production during the year 2010-11:

SL. Cos Name of Projects Type Sanctioned Capacity (MTY) Sanctioned Capital (Rs.Crs.)

1 ECL SARPIAUG UG 0.76 147.86

2 CCL TARMI OC 1.00 35.54

3 CCL GOVINDPURPHII OC 1.20 142.11

4 WCL URDHAN OC 0.50 43.50

5 SECL HALDIBARIUG UG 0.42 47.92

6 SECL AMERA OC 1.00 42.83

7 SECL AMGAON OC 1.00 39.28

8 MCL KANIHA OC 10.00 457.77

TOTAL 15.88 956.81

Status of Ongoing Projects:

Presently there are 117 mining and 13 non-mining projects, costing Rs. 20 crores & above, under different stages of implementation. Out of 117 mining projects, 76 are on schedule & 41 are delayed. Out of 13 non-mining projects, 10 are on schedule, 3 are delayed

Projects Total projects Projects on schedule Projects delayed

Mining 117 76 41

Non Mining 13 10 03

Total 130 86 44

Reasons of delay:

Mining Projects:

SL. REASONS FOR DELAY NO OF PROJECTS

1 ADVERSE GEOMINING CONDITION 02

2 LAND ACQUISITION 24

3 MISCELLANEOUS 15

Total 41

Non-mining Projects:

SL. REASONS FOR DELAY NO OF PROJECTS

1 ADVERSE GEOMINING CONDITION -

2 LAND ACQUISITION 1

3 MISCELLANEOUS 2

Total 3

8.3 PROJECTS SANCTIONED:

(a) No Advance Action proposal had been sanctioned by Government during 2010-11.

(b) No Expansion Project had been sanctioned by the Govt, during 2010-11.

(c) One OC project, costing more than Rs. 20 Crs, with an ultimate sanctioned capacity of 10.00 Mty & sanctioned capital of Rs. 1008.12 Crs had been sanctioned by CIL Board during 2010-11.

SL. Cos Name of Projects Type Sanctioned Capacity (MTY) Sanctioned Capital
1 SECL GEVRAEXPNOC (25-35 Mty) OC 10.00(Incr) 1008.12(Incr)

Total 10.00 1008.12

(d) 2 Non-mining projects (both washeries) with a capacity of 10.00 Mty & sanctioned capital ofRs. 432.63 Crs had also been approved by CIL Board during 2010-11.

SL. Cos Name of Projects Sanctioned Capacity (MTY) Sanctioned Capital
1 BCCL MADHUBANDH WASHERY 5.00 262.99

2 BCCL PATHERDIH WASHERY 5.00 169.64

Total 10.00 432.63

(e) Under their delegated powers to sanction projects, the Subsidiary Company Board had sanctioned one OC project costing more than Rs. 20 Crs, with an ultimate capacity of 5.00 Mty & sanctioned capital of Rs. 27.82 Crs, during 2010-11:

SL. Cos Name of Projects Type Sanctioned Capacity (MTY) Sanctioned Capital
1 MCL SAMLESWARI IV OC 5.00 27.82

Total 5.00 27.82

(f) 5 Non Mining projects, costing more than Rs. 20 Crs, had also been sanctioned by the subsidiary companies during the year 2010-11, with a capacity of 61.00 Mty & Sanctioned capital of Rs. 819.36 Crs.

SL. Cos Name of Projects Sanctioned Capacity Sanctioned Capital (MTY) (Rs.Crs.)

1 MCL CONSTRUCTION &COMMISSIONING OF IB VALLEY WASHERY 10.00 181.00

2 MCL CONSTRUCTION & COMMISSIONING OF HINGULA WASHERY 10.00 181.00

3 MCL CONSTRUCTION OF SILO DISPATCH KULDAOC 10.00 35.95 (FOR BASUNDHRA WASHERY)

4 MCL COAL TRANSPORTS SILO ARRANGEMENT 15.00 183.86

AT ANANTA SPUR SIDING V&VI

5 MCL COAL TRANSPORTS SILO ARRANGEMENT AT LINGRAJ OCP 16.00 237.55

Total 61.00 819.36

8.4 REVISED PROJECT REPORT / REVISED COST ESTIMATES:

(a) No RPR / RCEs were sanctioned by Government during 2010-11.

(b) No RPR / RCEs were sanctioned by CIL during 2010-11.

(c) RPR / RCEs for 1 OCP & 2 UG projects were sanctioned by Subsidiary Company Boards during 2010-11, with an ultimate sanctioned capacity of 3.25 Mty & a sanctioned capital of Rs. 205.75 Crs.

SL. Cos Name of Projects Type Sanctioned Capacity (MTY) Sanctioned Capital
1 WCL GONDEGAON-GHATRONAEXPN OC 2.00 73.88

2 SECL BAGDEVAEXPNRPR UG 0.75 87.12

3 SECL JHILMILIRPR UG 0.50 44.75

Total 3.25 205.75

9. CAPITAL EXPENDITURE

Overall Capital Expenditure during 2010-11 was Rs. 2539.72 crores as against Rs. 2809.99 crores in the previous year, subsidiary-wise details of which are given below:-

Figures in Rs. Crores

Company 2010-11 2009-10

(BE) Actual (BE) Actual

ECL 400.00 184.93 210.00 165.02

BCCL 350.00 320.94 230.00 293.35

CCL 350.00 200.76 420.00 321.31

NCL 800.00 310.53 730.00 545.45

WCL 350.00 239.74 230.00 252.34

SECL 600.00 581.87 730.00 770.67

MCL 650.00 608.10 200.00 404.19

CMPDIL 15.00 10.74 15.00 11.42

NEC/CIL/Others 285.00 82.11 135.00 46.24

Total 3800.00 2539.72 2900.00 2809.99

Capital Expenditure incurred during 2010-11 is about 66.83% of BE (96.90% in 2009-10).

10. CAPITAL STRUCTURE

The authorized share capital of the company as on 31.03.2011 was Rs. 8904.18 crores, distributed between Equity and Non-cumulative redeemable preference shares as under:

(i) 90,41,800 Non-cumulative 10% redeemable Rs. 904.18 crores

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

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

Rs. 8904.1 Scroti

Note: During the year 2009-10, the equity shares have been split from Rs. 1000/- per share to Rs. 10/- per share. The paid-up equity capital as on 31.03.2010 wasRs.6316.36crores,out of whichRs.6316.36 issued in favour ofthe Government of India (Gol), including Rs. 256.93 crores worth of Equity Shares issued towards value of land acquired.

Pursuant to disinvestment of 10% of total equity shares held by Govt, of India, to the public, the shares of Coal India Ltd. has been listed in major Stock Exchange viz. BSE and NSE with effect from 4th November 2010.

Total investment by the Government of India in CIL and its subsidiaries as on 31.03.2011 was Rs. 5684.73 crores as against Rs. 6316.36 crores in the previous year as detailed below:-

Figures in Rs. Crores

As on 31.03.2011 As on 31.03.2010

Share Capital-Equity

Investment by Gol 5684.73 6316.36

Other Investors 631.63 -

Total 6316.36 6316.36

11. BORROWINGS

Aggregate borrowings of CIL, excluding bank borrowings ofRs. 32.60 Cr. (Rs. 463.17 Cr.) has reduced to Rs. 1520.96 Cr. in 2010-11 from Rs.1623.68 Cr in 2009-10 as detailed below:

Figures in Rs. Crores

Particulars As on 31.03.2011 As on 31.03.2010

Foreign Loans including deferred credits

IBRD/JBIC 1370.42 1464.30

EDC Canada 141.56 146.55

CME China - 3.74

Liebherr France SA., France 8.98 9.09

TOTAL 1520.96 1623.68

Decrease in outstanding was mainly because of repayment of principal and reduction in equivalent foreign currency of outstanding loan over previous year. The debt servicing had been duly met.

12. FOREIGN COLLABORATION

Coal India is looking for foreign collaboration with a view to:

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

- Exploration of coal reserve.

- Exploration and exploitation of Coal Bed Methane, UG Coal Gasification etc.

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

- Exploring financial assistance for import of equipment and other investment needs of the coal industry in India.

Keeping the above objectives in view, discussions are being held from time to time with countries like USA, Canada, UK, Russia, Germany, France, Poland, Belarus, South Africa, Mozambique, Iran, Turkey, China, Japan, Australia etc. to identify the areas of mutual cooperation for India in general and Coal India Limited in particular.

The important areas identified include modern technologies for mass production in both UG and OC mining, dealing with fire and subsidence, mine safety, coal preparation, extraction of Coal Bed Methane, UG Coal Gasification, application of Geographical Information System, Satellite Surveillance, Environmental Control, overseas ventures in coal mining.

While CIL would endeavor to acquire suitable technology through international bidding on risk/gain sharing basis, bilateral cooperation may also be encouraged for locating availability of cost effective and latest technologies in the aforesaid areas, if the technology proves to be discernibly advantageous. CIL, therefore, has been following both these routes, albeit in varied measures. Followings are the details of activities took place with different countries during 2010-11:

Indo-US Collaboration:

The meeting of the Indo-US Coal Working Group (CWG) was held on 1 st April 2008. The following R&D project proposals, developed by CWG, had been finalized for CIL.

- Cost-effective Technology for Beneficiation and Recovery of fine coal

- Beneficiation Technology for Low Volatile Coking Coal

- Development of a Coal Preparation Plant Simulator.

The new areas identified by the CWG for possible cooperation were as follows:

- Underground Coal Gasification,

- Dry Coal Beneficiation,

- CBM/CMM/AMM.

- Coal Resource Characterization,

- Study for developing a model to increase usable quantum of energy from indigenously mined coal,

- Study on revival of selected abandoned mines in CIL companies.

The 8th Indo-US coal working group was held on 24/3/2011 at New Delhi. Ongoing CWG activities and project proposal for funding under Indo-US CWG was presented by Chairman CIL. Deliberations were held for enhancing technical capability of professionals from CMPDI in the area of Geospatial Technology for effective mine land reclamation and Sustainable Development of coal resources in India.

Indo-German Collaboration:

17th meeting of the Indo-German Working Group on Coal was held in Kolkata on 07.11.2008. The areas identified to strengthen the working group cooperation efforts are as under:

- Developing technology, essential for deep shaft sinking for extraction of deep seated coal,

- Technology for Hard Roof Management in coal mines,

- Establishing techniques to assess and extract CBM & CMM,

- Underground Coal Gasification (UCG) for coal resources at greater depth/isolated deposits,

- 3D Seismic Survey with Borehole Imaging System,

- Ventilation Air Methane - mitigation and utilization of Indian Mining scenario,

- In Seam Seismic Survey for underground coal mining operation,

- Joint Venture for mining abroad with technological cooperation from Germany,

- Cooperation in capacity building specially in UG mines.

Indo-German Coal Industry Interface meeting was held on 9th November 2010 at Kolkata where delegates from CIL and German side presented the scope towards industrial and scientific cooperation.

Indo-Belarus Collaboration:

The 4th meeting of the Indo-Belarus Inter Governmental Commission for Economic,Trade, Industrial, Scientific,Technical and Cultural Co-operation was held in New Delhi on 17th & 18th November, 2008. Both the sides negotiated and discussed the issues of cooperation on the basis of mutual and equal interest.

Further, a meeting was held between MOS (l/C) Coal and First Deputy Prime Minister of Republic of Belarus on 25/10/2010 where Chairman, Coal India Limited was also present. It was suggested that, for HEMM, Belarus should 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.

Honourable Minister (l/C), Coal and senior officials from the

ministry were invited to visit Belarus to have on site inspection of their equipment manufacturing facilities in Belarus.

Indo-Australia Collaboration:

The 6th meeting of the India-Australia JWG on Energy and Minerals was held in New Delhi on 16-17th March, 2009.The working group discussed on recent trade and investment developments, implications of the global financial crisis on the resources and energy sectors, recent energy and mineral policy developments.

The Joint Working Group also agreed to activities in 2009-11 under the five Actions Plans signed between Australia and India in November, 2008 viz Mining and Minerals, Coal, New and Renewable Energy, Power, Petroleum and Natural Gas. The workshops hosted by concerned ministries on 16.03.2009 also produced constructive dialogues around the key themes of Joint Action Plan, signed between MOC and Department of Resource Energy & Tourism, Govt of Australia on 05.11.2008.

A Joint Sub-Group/Task Force with Joint Secretary, MOC, as Chairperson was constituted by MOC for developing bilateral opportunities and continuity of all key areas enumerated in Joint Action Plan signed in November 2008.

The meeting of the Task Force under India-Australia Joint Working Group and Energy and Minerals Forum was held in Australia from 7th to 10th June 2010.

The 7th Indo-Australia Joint working group meeting on Energy & Minerals was held from 17th to 18th May, 2011 at Sydney, Australia.

Indo-Mozambique Collaboration:

MOU for co-operation in the area of coal mining exists between Govt, of India and Govt, of Mozambique. Till date two meetings of Indo-Mozambique Joint Working Group on Coal have been held, one in Mozambique and the 2nd in New Delhi.

CIL leveraged the bi-lateral platform of Indo-Mozambique JWG on coal to acquire prospecting license (PL) of two coal blocks

in Mozambique, namely A1 and A2, covering an area of 22400 hectares. It emerged as the successful bidder in the global tender process run by Govt, of Mozambique based on its proven core competence over the entire gamut of coal business value chain. The licenses will allow CIL to explore and develop the coal blocks over a period of 5 years. A 100% wholly owned subsidiary of CIL namely, Coal India Africana Limitada (CIAL), has been registered in August 2009 in Mozambique for investment in coal resources.

CIL intends to start drilling and exploration activities in the leasehold area of the aforesaid coal blocks for which a tender was floated in the month of February, 2011 to undertake prospect in these coal blocks. Bids from the interested bidders have been received and the same are under evaluation. Meanwhile initiatives have also been taken to operationalize CIAL to oversee exploration and development of the coal blocks already under possession and to venture into further acquisition initiatives in Mozambique.

Asia Pacific Partnership:

Seven countries namely Australia, China, India, Japan,The Republic of Korea, USA and Canada of the Asia Pacific Partnership on Clean Development and Climate have decided to cooperate in the increased energy needs and associated challenges, including those related to air pollution, energy security and greenhouse gas intensities. The partnership has established eight task forces in key sectors.

- 6th meeting of CMTF was held from 10-12th March, 2010 at Pokolbin, Hunter Valley, Australia. In the aforesaid meeting Indian side made a brief presentation on the status of implementation of various on-going projects and also highlighted other issue or problem in respect of on-going projects.

- CMTF meeting held on 14-16th September 2010 at Whistler, Canada was the last meeting of CMTF. The PIL decided to phase out CMTF at Bonn, Germany. In the meeting, it was agreed to transfer some of the existing projects which are to be completed through other existing bilateral fora. It was noted that all ongoing projects could be covered by the proposed changeover.

13. WORLD BANK FINANCED PROJECTS FOR 2010-11

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

With the repayment of loan of USD 104.25 million to IBRD and JPY 15097.35 million to JBIC till 2010-11, the total CSRP loan as on31st March, 2011 stands at USD 141.48 million (equivalent to Rs. 638.67 crore) on account of IBRD and JPY 13343.47 million (equivalent to Rs. 731.75 crore) on account of JBIC.

Thus, a total amount ofRs. 1370.43 crore is lying outstanding under CSRP Loan as on 31st March 2011.

COAL VIDESH DIVISION, CIL

1. A. Status on EOI - Initiative for selection of Strategic partner (s)

1.1 Coal India Limited (CIL) is pursuing its foreign venture initiatives to acquire coal mines/blocks abroad, develop and produce from such mines in order to import the coal produced to India with the strategic initiatives of securing energy security of the nation.

1.1. A global Expression of Interest (EOI) was floated by CIL to select Strategic Partner(s) in preferred destination countries l


Mar 31, 2009

On behalf of the Board of Directors, I have great pleasure in presenting to you, the Thirty-sixth Annual Report of Coal India Limited and Audited Accounts for the year ended 31st March, 2009 together with the reports of the Statutory Auditors and the Comptroller and Auditor General of India thereon.

During the year the company continued to have eight fully owned subsidiary companies viz. Eastern Coalfields Limited (ECL), Bharat Coking Coal Limited (BCCL), Central Coalfields Limited(CCL), Western Coalfields Limited (WCL), South Eastern Coalfields Limited (SECL), Northern Coalfields Limited (NCL), Mahanadi Coalfields Limited (MCL) and Central Mine Planning & Design Institute Limited (CMPDIL).

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

The year gone by has been one of the most challenging yet rewarding for Coal India Ltd. The steady performance of Coal India Limited over the years since inception and its contribution to the Countrys growth and creation of National Wealth was amply recognized when the company was conferred with the "Navratna Status" in October 2008.

The performance of the company both in terms of physical as well as basic financial parameters have improved this fiscal over the previous year despite the unprecedented global economic melt down. In fact the year has been an year of consolidation and accelerated growth for Coal India Limited. The coal production for the year was 403.73 million tonnes against 379.46 million tonnes thereby registering a growth of 6.4% which was much higher than average 5.4% since beginning of X tn plan period till 2007-08. The offtake grew by 6.96% to 401.46 mill tonnes as against 375.33 million tonnes in the previous year. The gross turn over at Rs.45796.59 crores against Rs.38865.70 crores in previous year accounted for a growth of 17.80% even though coal prices were not revised during the year.

The sharp increase in input cost during the year was due to the pay revision for both Wage Board employees and Executives accounting for 52.98%> of the total cost of production. Coal India Limited finalized the National Coal Wage Agreement (NCWA-VIII) in January, 2009 giving a 24% incremental benefit, the highest agreed so far. This not only helped avert a major strike call by the workers union which would have certainly plunged the company into loss of production thereby affecting power generation and GDP growth already at a critical stage because of global economic melt down but also helped to lift the motivation for the employees which resulted in better industrial environment of the industry. The executive pay revision has also come into effect in line with the recommendations of the DPE, with a major financial impact on the bottom line of the company. These cost increase have not yet been neutralized through price adjustment. The increase in pay and wage revision by a staggering Rs.8348.70 crores had the effect of bringing down the pre-tax profit from Rs.14092.80 crores to Rs.5744.10 crores.

As already mentioned the conferment of Navratna status to Coal India Limited has opened up new vistas as well as responsibilities and challenges for future. Now the Board of Coal India Limited is empowered to sanction all projects on its own, which will fasten the implementation of pending projects and thereby contributing energy security of the country in a more effective manner. Consequently CIL has taken up the challenge on itself to enhance the coal production to 435 million tonnes by 2009-10 i.e. a growth of 7.7%.

The global meltdown and its impact on Coal India:

- The recent global meltdown and the economic recession has not affected CIL in a major way since demand for coal from power producers and from other coal consuming industries continues to be high. This was mainly due to the countrys accelerated programme of addition to power generation capacity being largely on course.

- On the contrary CIL is helping to mitigate affects of economic meltdown in India to some extent. By offering coal at a deep discount to international prices even, in the face of global economic meltdown, the company plays an extremely important strategic role in making the end user industry globally competitive.

- Some of the highlight of performance of the company are touched upon in the following paragraphs to illustrate the companys all round performance during the year:-

Environment management by CIL- Satellite Surveillance measures

- Coal India Limited during the year 2008-09 has introduced a Satellite Surveillance System for monitoring of land reclamation and afforestation of its major opencast mines. Starting with 35 large major opencast mines in phase-I the coverage will be extended in phases to all opencast mines. Consequently reports based on satellite data is being uploaded in the websites of CIL, CMPDIL and concerned coal companies. This is expected to bring substantial transparency in CILs environmental management efforts.

- Coal India has already planted about 7 crores plants with a survival rate of over 85%. Thirty open cast mines of Coal India are in possession of ISO 14001 certification.

- The year 2009-10 has been declared as the year of "Environment Management" at CIL.

Welfare measures/ corporate social responsibility measures

- As a measure of responsibility for providing employee welfare, CIL has introduced a scheme for meeting the cost of education including hostel charges for children of workmen in select engineering colleges and Govt. Medical Colleges.

- Action has been initiated for setting up of mobile dispensaries and wellness clinic on a large scale. Similar proposal has also been initiated to introduce Telemedicine facilities in central hospitals and extend such facilities to the people residing in an around the coal mining areas.

- The company has for the benefit of the society at large undertaken activities viz.

i) adoption of villages / providing basic amenities such as clean water /sanitation/ roads etc.; ii) setting up of CSR dispensaries in all the subsidiary companies; iii) providing medical facilities to the villagers at their doorsteps in remote places using Mobile Medical vans; iv) organizing health awareness programmes amongst others.

Venture abroad

During the year CIL successfully bagged two virgin coal blocks covering around 224 square kilometers viz. Al and A2 blocks in coal bearing TETE province of Mozambique through competitive bidding process run by Govt, of Mozambique. The blocks will be taken up for exploration and development shortly after completion of necessary formalities. The coal which will be subsequently mined from these blocks will be imported to India to substantially augment the coal availability in the country

Transparency initiatives

As a part of clean and transparent measure of corporate governance as well as enhancing the speed of decision making CIL has sealed a pact with MSTC Limited to act as a independent service provider for CILs e-tendering and reverse auction services.

Fuel Supply Agreement

As a measure of ushering in an era of consumer-friendly commercial practices in coal marketing, Fuel Supply Agreements have been entered into with all major consumers.

R&R Policy

The modified rehabilitation and resettlement (R&R) policy of CIL adopted in March 2008 is more project affected people (PAP) friendly. CIL is pursuing an inclusive model of growth by ensuing that PAPs are included in the decision making process underlining the need for wider contribution in R&R policies of communities affected due to mining. The aim is to pursue best practices of Corporate Social Responsibility (CSR) around the coal mining areas and improved the quality of life with community consensus and active participation of people involved.

Other long term virgin initiatives

As a strategic expansion programme, CIL has undertaken activities for developing seven large underground mines, re-opening eighteen abandoned mines, developing 18 coal beneficiation plants (for providing washed coal to all non-pithead consumers) on Build Operate and Maintain basis.

2.0 FINANCIAL PERFORMANCE

2.1 Financial Results

A. The pre-tax profit of CIL and its subsidiary companies during the year 2008-09 is Rs. 5744.10 crores after taking into account the impact of pay revision for workmen w.e.f 01.07.2006 and executives from 01.01.2007. Financial impact of revision of wages of wage board employees and that of executives are Rs. 10104.78 crores, out of which liability provided in the Accounts of 2007-08 was Rs. 1756.08 crores and the balance of Rs. 8348.70 crores has been provided in 2008-09. Out of the aforementioned financial impact of Rs.8348.70 crores, Rs. 3129.26 crores relates to actuarial liability for increased salary and increased ceiling of gratuity from Rs.3.50 lacs to Rs. 10.00 lakhs. On a like-to-like comparison between 2007-08 and 2008-09 without the provision of pay revision of wage board employees and executives, growth in profit before tax is 34.29% over last year. Company-wise position of profit before tax without considering the impact of pay revision is stated below:-

Company 2008-09 2007-08

Profit (+) / Loss (-) Profit (+) / Loss (-)

ECL (-) 255.98 (-) 638.72

BCCL (+) 208.35 (+) 431.40

CCL (+) (+) 1282.31

1759.25

NCL (+) 3619.50 (+) 2826.99

WCL (+) 1787.55 (+) 1207.38

SECL (+) 3356.62 (+) 2393.89

MCL (+) 2945.78 (+) 2578.98

CMPDIL (+) 127.19 (+) 26.50

CIL/NEC (+) 3791.28 (+) 2666.69

Sub-Total (+) 17339.54 (+) 12775.42

Less : Dividend from Subsidiries (-) 3329.74 (-) 2378.27

Total (+) 14009.80 (+) 10397.15

(+) (+) (+) (+) 8674.30

8674.30

Adjustment for

deferred (+) 83.00 (+) 97.38 Revenue income

Overall Profit as per Consolidation of (+) 14092.80 (+) (+) 10494.53 (+)

Accounts (+) 8674.30 (+) 8674.30

B. Nevertheless, after considering the impact of pay revision retrospectively, CIL and its subsidiaries have achieved an aggregate pre-tax profit of Rs. 5744.10 crores in the year 2008-09 against a pre-tax profit of Rs 8738.46 crores in the year 2007-08. The financial impact of pay revision accounted for being Rs.8348.70 crores in 2008-09 as against Rs. 1756.08 crores in 2007-08.

Company-wise position with regard to profit(+) earned or loss (-) incurred during the year under review vis-a-vis in 2007-08 are given in the table appended below:-

Figures in crores

Company 2008-09 2007-08

Profit (+) / Loss (-) Profit (+) / Loss (-)

ECL (-) 2105.70 (-) 1026.66

BCCL (-) 1376.99 (+) 97.05

CCL (+) (+) 1035.25

763.80

NCL (+) 3131.01 (+) 2763.75

WCL (+) 516.12 (+) 930.22

SECL (+) 1817.93 (+) 2067.37

MCL (+) 2580.25 (+) 2504.79

CMPDIL (+) 6.74 (+) 5.00

CIL/NEC (+) 3657.68 (+) 2642.58

Sub-Total (+) 8990.84 (+) 11019.35

Less : Dividend from

Subsidiries (-) 3329.74 (-) 2378.27

Total (+) 5661.10 (+) 8641.08

(+) (+) (+) (+) 8674.30

8674.30

Adjustment for deferred Revenue income (*) (+) 83.00 (+) 97.38

Overall Profit as per Consolidation of Accounts (+) 5744.10 (+) 8738.46 (+)

(+) (+)8674.30 <+) 8674.30

(*) Recognition of revenue in respect of interest claim and apex charges attributable to BCCL in years account have been deferred by CIL in consistence with the provision of AS-9 of ICAI of Revenue Recognition.

Highlights of performance

The highlights of performance of Coal India Limited including its Subsidiaries in the year 2008-09 compared to previous two years are shown in the table below:

2008-09 2007-08 2006-07

Production (in million tonnes) 403.731 379.461 360.91

Off-take of Coal (in million tonnes) 401.46 375.33 351.14

Sales (Gross) (Rs./Crores) 45796.59 38865.70 35129.16

Gross Profit (Rs./Crores) 5900.60 8888.39 8687.38

Capital Employed (Rs/Crores) 16963.98 17108.20 16223.74

Net Worth (Rs./Crores) 19165.04 19342.36 17889.30

Profit before Tax (Rs./Crores) 5744.10 8738.46 8602.46

Profit after Tax (Rs/Crores) 2078.69 5243.27 5708.73

Gross Profit to Capital employed 34.66% 51.95% 53.55%

Profit before Tax to Net Worth 29.97% 45.18% 48.09%

Coal Stock (Net) ( in terms of No. 0.78 0.88 0.88 of months Net Sales)

Sundry Debtors (Net) ( in terms of 0.47 0.45 0.50 No. of months Gross Sales)

The above financial position has been prepared as per the Consolidated Accounts (Accounting Standard (AS-21). Since, non-recognition of interest, etc. in Holding Companys Accounts, from one of its subsidiaries (as per Accounting Stadard-9) has been ignored in such consolidation (to comply with provisions of AS-21), the profit as well as related corresponding figures shown above may be read with such deviation.

2.2 Dividend Income and Pay Outs:

Dividend income of CIL accounted for during the year under review, based on the recommendations from five profit making subsidiaries namely, CCL, NCL, WCL, SECL and MCL was Rs. 3329.74 crores as against dividend of Rs. 2378.27 crores in previous year, the Subsidiary-wise break-up of which are as under:

Name of the Subsidiary Rs. in crores

CCL 250.23

(244.40)

NCL 1063.00

(776.59) WCL 259.34

(296.00)

SECL 757.17

(510.78)

MCL 1000.00

(550.50)

TOTAL 3329.74

(2378.27)

Figures in brackets are for previous year.

Your Directors recommended dividend payment of Rs. 1705.42 crores @ Rs. 270/- per share on 63163644 Equity Shares of Rs. 1000/- each fully paid valued at Rs. 6316.36 crores and payment of tax as applicable thereon.

36. Acknowledgement:

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

For and on behalf of the Board of Directors

Sd/- Partha S. Bhattacharyya Chairman

Kolkata, the dated 27th July, 2009.



 
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