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Coal India Ltd.

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VOLUME 1033564
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52-Week low 234.00
P/E 10.85
Mkt Cap.(Rs cr) 157,606
Buy Price 0.00
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Coal India Ltd. (COALINDIA) - Director Report

Company director report


The Members Coal India Limited Kolkata.

Ladies and Gentlemen

On behalf of the Board of Directors I have great pleasure in presenting to you the 42ndAnnual Report of Coal India Limited (CIL) and Audited Accounts for the year ended 31stMarch 2016 together with the reports of Statutory Auditors and Comptroller and AuditorGeneral of India thereon.

Coal India Limited (CIL) is a ‘Maharatna’ company under the Ministry of CoalGovernment of India with headquarters at Kolkata West Bengal. CIL is the single largestcoal producing company in the world and one of the largest corporate employers withmanpower of 3 22404 (as on 1st April 2016). CIL operates through 82 miningareas spread over eight provincial states of India. Coal India Limited has 413 mines (ason 1st April 2016) of which 207 are underground 176 opencast and 30 mixedmines. CIL further operates 15 coal washeries (12 coking coal and 3 non-coking coal) andalso manages other establishments like workshops hospitals and so on. CIL has 27 trainingInstitutes. Indian Institute of Coal Management (IICM) is an excellent training centreoperates under CIL and imparts multidisciplinary management development programmes to theexecutives. Coal India’s major consumers are Power and Steel sectors. Others includecement fertilizer brick kilns and a host of other industries.

CIL has eight fully owned Indian subsidiary companies:

Eastern Coalfields Limited (ECL)

Bharat Coking Coal Limited (BCCL)

Central Coalfields Limited (CCL)

Western Coalfields Limited (WCL)

South Eastern Coalfields Limited (SECL)

Northern Coalfields Limited (NCL)

Mahanadi Coalfields Limited (MCL) and

Central Mine Planning & Design Institute Limited (CMPDIL).

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

The mines in Assam i.e. North Eastern Coalfields is managed directly by CIL.

Mahanadi Coalfields Limited a subsidiary of Coal India Ltd is havingfour(4)SubsidiariesSECL has two(2) and CCL one(1) as under:-.

a. MJSJ Coal Ltd.

MJSJ Coal Ltd. was incorporated on 13th August 2008 as a Joint VentureCompany of MCL. MJSJ Coal Ltd. has been formed for operating Gopal Prasad OCP which wasformed by combining Utlak ‘A’ and West of Gopal Prasad West blocks together. Inthis joint venture MCL is having 60% shares JSW Steel Limited and JSW Energy Limitedhaving 11% shares each and Shyam Metalics and Energy Ltd. (formerly known as Shyam DRIPower Ltd.) and Jindal Stainless Limited having 9% shares each. The paid up share Capitalof MJSJ Coal Ltd. as on 31st March’2016 was Rs 95.10 Crores. Hon’bleSupreme Court vide its order dated 24th September 2014 cancelled theallocation of Utkal ‘A’ block which was a part of the MJSJ venture.

b. MNH Shakti Ltd.

MNH Shakti was incorporated on 16th July 2008 as a Joint Venture Company ofMCL. MNH Shakti Ltd. has been formed for operating Talabira OCP which was formedcombining Talabira-II and Talabira-III coal blocks together. In this joint venture MCLwas having 70% shares Neyveli Lignite Corporation Ltd. 15% shares and Hindalco IndustriesLtd. 15% shares. The Share Capital of MNH Shakti Ltd. as on 31stMarch’2016 was Rs 85.10 Crores. Hon’ble Supreme Court vide its order dated 24thSeptember’2014 cancelled the allocation of Talabira-II and Talabira-III coal blocks.

c. Mahanadi Basin Power Limited.

Another Company "Mahanadi Basin Power Limited" was incorporated on 2ndDecember 2011. MBPL had been formed as an SPV with 100% shares held by MahanadiCoalfields Ltd for power generation of 2x800 MW through Pit Head Power plant at BasundharaCoalfields. The Share Capital of Mahanadi Basin Power Limited as on 31stMarch’2016 was Rs 5 lakh.

d. Mahanadi Coal Railway Limited

A Joint venture Company namely Mahanadi Coal Railway Limited was formed on 31stAugust 2015 with an equity participation ratio of 64:26:10 among MCL IRCON and IDCO tobuild construct operate and maintain identified rail corridor projects includingdoubling third line traffic facility projects important for coal connectivity that arecritical for evacuation of coal from mines in the state of Odisha.

Subsidiaries of SECL

SECL had incorporated two subsidiary companies viz. M/s Chhattisgarh East Railway Ltdon 12th March’2013 and M/s Chhattisgarh East- West Railway Ltd on 25thMarch’2013 with 64% shareholding in each of the subsidiaries for construction ofrailway lines for evacuation of coal.

Joint Venture of CCL

Jharkhand Central Railway Limited is a Joint Venture Company between Central CoalfieldsLimited M/s Ircon International Limited and Govt. of Jharkhand incorporated on 31stAugust’2015 for evacuation of Coal in which CCL holds 64% shares.


1) Company produced 538.75 MT. of coal with a growth of 9.01% compared to the last yearsame period. This is the first time CIL crossed half a billion tonne of coal production inits pursuit to achieve 1.00 billion tonne in 2019-20. The Hon’ble Prime Minister ofIndia commented in his inaugural speech of ‘Make in India’ in Mumbai on 13thFebruary’2016 that "this year we will record the highest ever coalproduction" which had come true.

2) Company achieved an off-take of 534.50 MT. with a growth of 9.23% compared to thelast year same period. This is the first time CIL surpassed 0.5 billion tonne of coaldespatch thereby setting the stage for a high orbit growth in the ensuring years.

3) For the first time CIL has acheived a gross sales of Rs 108150.03 crores alandmark achievement.

4) Not a single power-utility was in critical or supercritical condition for want ofcoal.

5) Due to the improved despatch and better quality of coal import of coal to India hadreduced during 2015-16.

6) Company removed 1148.908 MM3 of OB with a growth of 29.60% compared to the last yearsame period. It improved the mine geometry and made the mines safer to operate. It alsoaugurs well for more production in 2016-17.

7) Western Coalfields Limited a subsidiary of Coal India Limited started eco-friendlymine tourism which was highly popular. The Hon’ble Prime Minister of India in his‘Mann Ki Baat’ programme aired on 27th March’2016 made a specialmention of this.


1. Coal India was conferred with ‘Rashtriya Khel Protsahan Puruskar -2015’ for Encouragement of Sports through Corporate Social Responsibility. Theaward was given to CIL by the Hon’ble President of India on 29th August2015 at Rashtrapati Bhavan.

2. Coal India was conferred 'Fastest Growing Company’ award in the IndiaToday PSU Awards event held in Delhi on 14th December 2015.

3. Coal India was conferred ‘Award of Excellence’ in recognition ofits outstanding performance by Bureaucracy Today's "BT-Star Excellence Awards2015" in an event held on 15th May 2015 in New Delhi.

4. Coal India bagged the 1st Prize in Corporate Offices Category for BestImplementation of Official Language Policy of the Union by Town Official LanguageImplementation Committee (TOLIC) (PSU) Kolkata. The prize was given by Hon’bleGovernor of West Bengal.


2.1 Financial Results (CIL Consolidated)

CIL is one of the largest profit making and tax & dividend paying enterprises inIndia. CIL and its subsidiaries had achieved an aggregate Pre-Tax Profit of Rs 21 589.09crores for the year 2015-16 against a pre-tax profit of Rs 21583.92 crores in the year2014-15. CIL as a group had achieved a post tax profit of Rs 14274.33 crores in 2015-16(excluding share of minority loss of Rs 0.04 crore; previous year: 0.09 crore) compared toRs 13726.70 crores in 2014-15. The subsidiary wise details of Pre-tax Profit of CIL aregiven in

Annexure 1.

Highlights of performance

The highlights of performance of Coal India Limited Consolidated for the year 2015-16compared to previous year are shown in the table below:

2015-16 2014-15
Production of Coal (in million tonnes) 538.75* 494.24
Off-take of Coal (in million tonnes) 534.50* 489.38
Sales (Gross) (`/Crores) 108150.03 95434.76
Capital Employed (`/Crores) Note- 1 65306.13 69744.42
Capital Employed (`/Crores)- excluding capital work in progress and intangible assets under development 59411.97 64585.05
Net Worth (`./Crores) 33879.42 40343.33
Profit Before Tax (`/Crores) 21589.09 21583.92
Profit After Tax (`/Crores) 14274.33 13726.70
PAT / Capital Employed (in %) 21.86 19.68
Profit Before Tax / Net Worth (in %) 63.72 53.50
Profit After Tax / Net Worth (in %) 42.13 34.02
Earning Per Share (Rs) 22.60 21.73
(Considering Face Value of Rs 10 per share)
Dividend per Share (Rs) 27.40 20.70
(Considering Face Value of Rs 10 per share)
Coal Stock (Net) (in terms of No. of months Net Sales) 0.98 0.79
Trade Receivables (Net) (in terms of No of Months Gross Sales) 1.27 1.07

*Production and Offtake of Coal for FY 2015-16 includes 2.28 MT and 2.15 MT in respectof Gare Palma IV/2&3 Mine for which Coal India Ltd. has been appointed akin to adesignated custodian w.e.f 01.04.2015 (through SECL)

Note-1:Capital employed = Gross Block of Fixed assets (including capital work inprogress and intangible assets under development) less accumulated depreciation pluscurrent assets minus current liabilities.

Transfer to Reserves

During the year 2015-16 a sum of Rs 1628.51 crores was transferred to General Reserveout of CIL Consolidated profits. This includes transfer of Rs 10.17 crores transferred outof CIL Standalone profits.

2.2 Dividend Income and Pay Outs (CIL- standalone)

While the financial statements of both CIL Standalone and CIL Consolidated arepresented separately only CIL Standalone is listed and relevant for dividend payment toits shareholders. The dividend to its shareholders are paid out of CIL’s Standaloneincome the major part of which constitutes the dividend income received from its fiveprofit 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 subsidiariesare given in Annexure 2.

During the year CIL Standalone has paid a total dividend (by way of interim dividend)of Rs 17306.84 crores @ Rs 27.40 per share on 6316364400 number of Equity Shares of Rs10/- each fully paid up. Out of above total dividend the share of Govt of India was Rs13784.86 crores and for other shareholders Rs 3521.98 crores. (Earlier year - Govt ofIndia - Rs 10414.14 crores and Other shareholders – Rs 2660.74 crores)

2.3 Supplementary Audit of Financial Statements by Comptroller and Auditor General ofIndia (C&AG)

There are no comments issued by the office of the C&AG either on Standalone orConsolidated Financial Statements of the company for the year 2015-16 on supplementaryaudit conducted under Section 143(6)(a) [and also read with Sec 129(4)] of the CompaniesAct 2013. The comments on supplementary audit of Standalone and Consolidated FinancialStatements are enclosed as Annexure 3 and Annexure 4 respectively.

2.4 Management Explanation on Statutory Auditor’s Report

The statutory auditors of the company have given an unqualified report {Annexure3(A) and Annexure 4(A)} on the Standalone Financial Statements and ConsolidatedFinancial Statements respectively of the company for the financial year 2015-16. Howeverthey have drawn attention under ‘Emphasis of Matter’ on certain issues. Theseissues under ‘Emphasis of Matter’ along with observations of the auditorselsewhere in the annexures of the audit report are enclosed as Annexure 5 &Annexure 5(A) respectively with Management explanations thereto.


3.1 (a) Off-take of Raw Coal

Off-take of raw coal continued to maintain its upward trend and reached 534.496 milliontonnes for fiscal ended March 2016 surpassing previous highest figure of 489.377 milliontonnes achieved during the last year i.e. an increase of 9.2 % over the last year. Theoverall raw coal off-take achieved was 97.2 % of the Annual Action Plan Target. In theyear 2015-16 all coal companies barring NEC could outperform their achievement of lastyear. BCCL NCL & SECL in addition had also exceeded their target.

Company-wise target vis--vis actual off-take for 2015-16 and 2014-15 are shown under Annexure6.

Offtake could have been more but for the following reasons:

SECL: Less demand of higher grades of Korea Rewa coal.

ECL: Unprecedented heavy rain caused water logging in OCPs during monsoon affectedproduction transportation and despatch. Less Demand of higher grades coal of Raniganj& financial constraint of WBPDCL / DVC and regulated lifting by NTPC-Farakka /Kahalgaon TPP affected loading & off-take.

CCL: Intermittent Law & Order problem inadequate demand and regulation inintake by up-country power stations of Haryana Punjab and Uttar Pradesh had affecteddespatch. Logistics bottleneck at Amrapali-Magadh Mines had also come in the way ofaugmenting off-take.

WCL: Comfortable coal stock at power stations led to regulated lifting. TPPs wereparticularly reluctant to take coal from Cost Plus Sources.

MCL: Sporadic incidence of law and order problem & less supply of wagonsagainst their indents affected MCL despatch. Less movement through MGR mode also affectedoverall dispatch.

Initiatives taken for enhancing off-take are as under:

• Regular co-ordination with Railway Board to optimize use of logistics resourcesavailable in the subsidiary coal companies analyzing inputs of the subsidiaries toidentify alternate source for coal movement wherever and whenever required to achieveoverall sectoral targets and mitigating critical fuel requirement of consuming sectorsparticularly power stations.

• Coordination with MOC for various long and short- term policy decisions toovercome coal movement constraints for power and non-power sector consumers and takingoperational decisions for moving coal from various sources on contingent situations tomeet critical requirements of consuming sectors particularly power utilities etc.

• Periodic Meetings and follow ups with Power producers in addressing issuesrelating to coal movement.

• Source Radionalization of coal linkage for optimizing coal movement as per therequirement of the consumers and logistics.

• Logistics is one of the major hurdles in reaching coal to the consumers.Capacity constraints both in terms of track and rolling stock are coming in the way forachieving the requisite growth. In order to boost-up the rail transport system followinginitiatives have been taken:

o MoU signed for investment in procuring 2000 high capacity wagons for movement of coalin dedicated circuit.

o SPVs by the coal companies with the State Governments and Railways for creating railinfrastructure -- two SPVs have already been formed at Chhattisgarh for creating railconnectivity at Korba/Raigarh. Similarly SPVs were also incorporated at Jharkhand andOdisha for similar initiatives on 31st August’2015.

o Three major last mile rail connectivity projects at Jharkhand Odisha andChhattisgarh have been brought under PMO monitoring mechanism to ensure commissioning asper the schedule.

o Special attention is given for improving coal distribution network for small and tinyconsuming sectors. CIL organized meeting with State Governments to streamline the processof nominating distribution agencies by them. o Coal companies started supplying 100 mmcrushed coal to its consumers w.e.f January’2016.

Ministry of Coal introduced the Scheme of Special Forward E-Auction for Power Plantswho were in stress or facing short supply of coal for not having coal blocks or linkages.14.5 Million Tonnes (MT) of coal was offered under this ‘Special ForwardE-auction’ against which booking was 13.8 MT. A similar scheme for consumers in thenon – power sector was also launched as Exclusive E-auction scheme for non-power. 1.5MT coal was booked under this scheme as against 4 MT of coal offered.

The web portal "Coal Allocation Monitoring System" was launched on 17thMarch’2016 by Minister of State with Independent Charge for Power Coal and New &Renewable Energy along with the officials from Ministry of Coal and Coal India Limited atNew Delhi. The portal aims to ease the conduct of business for small and medium sectorconsumers having annual requirement of less than 4200 tonnes of coal. The portal will makethe system of distribution of coal to such consumers through State Nominated Agenciesmore transparent. It has the following advantages:

a. Ease of doing business for consumers.

b. Accountability on the part of the Govt. and its enterprises.

c. 24 x 7 access of information on supply and distribution of coal in public domain.

d. Online registration and feedback system for consumers for improving the system.

e. Transparent coal distribution.

f. State and consumer awareness.

g. Peer audit among stakeholders.

(b) Sector-wise dispatch of coal & coal products:

In the year 2015-16 CIL dispatched 534.624 MT of Coal & Coal Products against thetarget of 548.938 MT i.e. an achievement of 97.4%. CIL has dispatched 44.642 MT of coaland coal products more than last year with a growth of 9.1%.

408.751 MT of coal and coal products was despatched to the power utilities against thetarget of 430.677MT i.e. an achievement of 94.9%. This is 23.356 MT more than lastyear’s dispatch of 385.395 MT resulting in a growth of 6.1%.

Sector-wise break-up of dispatch of coal & coal products for 2015-16 against thetarget and last year's actual is disclosed in Annexure 7.

3.2 Dispatches of coal and coal products by various modes:

Dispatches of coal and coal products during 2015-16 went upto 534.624 million tonnesfrom 489.982 million tonnes registering a growth of 9.1 %. Overall dispatch by Non-Railmode had been 106.6% of the target. Growth in despatches via Rail mode was 8.5 % whereasin the overall Non-Rail mode it increased by 9.8 %. Road despatches increased by 14.5%compared to the previous year. Movement by MGR was 2.4% above last year. Despatchesthrough other modes like belt & rope also increased by 17.2 % compared to the lastyear.Dispatch of coal and coal products by various modes for the years 2015-16 and 2014-15is disclosed under Annexure 8.

3.3 Wagon Loading

Overall wagon loading materialization was 91.3 % of the target. This was achieved dueto sustained efforts and regular coordination with railways at different levels. Theincrease in loading over last year was of 18.23 rakes per day. Company wise performanceshowed that WCL outperformed its target. All the subsidiaries except NEC exceeded lastyear’s level of loading.

Wagon loading could have been even better but for the regulated lifting by PowerUtilities almost in all the subsidiaries; less demand for higher grade coal from ECL andSECL intermittent law and order problem in CCL and MCL also affected rail dispatchperformance.

Wagon loading performance of 2015-16 vis--vis 2014-15 is disclosed under Annexure9.

3.4 Consumer satisfaction

i. In order to ensure enhanced customer satisfaction special emphasis is being givento quality management. Various steps are taken to monitor quality right at the coalfaceapart from bringing improvements in crushing handling loading and transport system.

ii. CIL has built up coal handling plant capacity of about 326 MT per annum so as tomaximize dispatches of crushed/sized coal to the consumers. CIL is already supplying (-)100mm sized crushed coal to all power plants w. e. f. 01.01.2016 except the pit head powerplants.

iii. In addition the 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 actionto establish 15 more coal washeries with combined capacity of 112.60 Mty.

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

v. Surface Miners have been deployed by CIL for selective mining at some of the OCPmines to improve quality of coal. Action is being taken for deployment of more surfaceminers in other OCP mines where geo-mining condition permits their usage. Already 64Surface Miners have been deployed in CIL opencast mines which are working satisfactorily.

vi. Joint/ Third Party sampling & analysis is in vogue for major consuming sectorse.g. power utilities steel cement sponge iron covering more than 95% of totalproduction of CIL. On overall basis large consumers having annual quantity of 0.4 MT ormore and having FSA have been covered under sampling. For the first time samplingfacility has been extended in special e-auction for power sector also.

vii. Subsidiary coal companies have already procured 121 Bomb Calorimeters for moreaccurate and transparent results of analysis of coal samples. Sampling and analysis atloading end for eligible customers availing such facility has been extended based onwhich coal bills as per analyzed grades are being settled.

viii. Pursuant to the decision taken in the meeting with the Association of PowerProducers during June 2014 on and above the existing system of coal sampling at theloading end it was decided that power producers may also engage their Third Party Agencyfrom a list of 25 empaneled agencies for taking part in drawing coal samples and analyzingthe same. In view of above PUs / IPPs have selected agencies w.e.f. Dec' 2014 onwards.

ix. MoC vide letter no. 23011/48/2013-CPD dated 26.11.2015 has issued new guidelineson third party sampling at loading ends –Standard Operating Procedures (SOP);formulated in accordance with the decision taken in the meeting held on 28thOctober’2015 under the Chairmanship of Hon’ble MOS (I/C) for Power Coal &NRE.

x. As per the new SOP independent Third Party Agencies are to be appointed by theCentral Institute of Mining and Fuel Research (CIMFR) by a transparent process forundertaking the work of sampling and analysis of coal at loading end on behalf of both thepower (consumer) and the Coal Companies (supplier). CIMFR has already started the work ofsampling and analysis of coal at loading end as per new guidelines of MoC at 13 (thirteen)loading points of CIL subsidiaries w.e.f. 01.01.2016 and in the process of starting thesame at other loading points of all subsidiaries in phases for coal supply to Powersector.

xi. Electronic weighbridges with the facility of electronic printout have beeninstalled at rail loading points to ensure that coal dispatches are made only after properweighment. For this purpose Coal Companies have installed 157 rail weighbridges in theRailway Sidings and 569 road weighbridges for weighment of trucks. Coal Companies havealso taken action for installation of standby weighbridges to ensure 100% weighment.

xii. 24 Auto Mechanical Samplers(AMS) are also working in subsidiary coal companies forcoal sampling for the bulk consumers eliminating chances of biasness in sampling process.Procurement of further AMSs is under process. The process has already been initiated todeploy Augur sampling for drawing more representative samples.

xiii. In order to ensure consumer satisfaction and resolve consumer complaints specialemphasis has been given to quality management and redressal of consumer complaint. On-linefiling and redressal of complaints has been initiated Percentage of consumer complaintsresolved is 99.68% [April 2015 to March 2016].

xiv. CIL has taken initiative to get NABL [National Accreditation Board for Testing andCalibration Laboratories] accreditation of main laboratories of different subsidiary coalcompanies. Eleven Laboratories of CIL (Two in CCL Four in SECL Two in BCCL and Three inMCL) has got NABL accreditation 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 theapplicable provisions of New Coal Distribution Policy. Due to overall deficit inavailability of coal considering the projected coal production from domestic sources andcommitments made through signing of FSAs/ issuance of Letter of Assurances (LOA) suppliesunder FSAs has been pegged at various level of commitments (trigger). Power sector beingthe major consuming sector having significant importance in the economy supplies to powersector has been guided as per the various Government directives and polices.

(i) For power stations commissioned on or before 31.03.2009 306 Million Tonnes hadbeen considered to be supplied through bilateral legally enforceable Fuel SupplyAgreements (FSA) with a trigger level of 90%. The total quantity covered under FSA againstthe allocation as on March’16 was 305 Million Tonnes.

Apart from the above 180 Letter of Assurances have been issued to power plants bysubsidiary companies of CIL as per the recommendations of various SLC (LT) Meetings about433.80 Million tonnes. Further as per Presidential Directives dated 16thApril’2012 and revised directive dated 17 July' 2013 a list of Power Plants havingan aggregate capacity of 78535 MW was notified for signing of FSA. A total 173 TPPs (149cases having normal LOA and 24 cases having Tapering LOA) were listed with an aggregatecapacity of 78535 MW. Till 31st March’2016 164 FSAs have been signed. Thebalance FSAs could not be signed for the reasons not attributable to CIL. However MOCOffice Memorandum dated 30th June’2015 directed CIL that the existingtapering linkage FSAs ceases to exist and coal would be supplied to them under separateMOUs route till 31.03.2016 or until a policy is formulated whichever is earlier.

Out of the plants having normal linkage FSAs have been signed for an Annual ContractedQuantity (ACQ) of about 219 Million tonnes for the aggregate capacity of about 56000 MWhaving long term Power Purchase Agreement (PPA) and qualify for commencement of coalsupply subject to commissioning etc.

(ii) In addition in terms of Presidential Directive dated 17 July’ 2013 coal isbeing supplied to power houses of 4660 MW having no fuel linkage with CIL on best effortsMOU basis on the condition that such supplies do not adversely affect the availability ofcoal for the identified plants of 78000 MW capacity. MOC Office Memorandum dated 30thJune’2015 limits supply to such categories of plants till 31stMarch’2016.

(iii) As on 1st April 2016 683 units other than power and steel plantshave operative FSAs with subsidiaries of CIL for about 49 million tonnes.

(iv) For supply of coal to Small and Medium Sector Consumers 8 million tonnes wasearmarked by CIL for allocation to agencies nominated by the State Govt’s/UT’s.18 States sent their nomination of 23 State Agencies for the year 2015-16 ofwhich 10 State Agencies of 8 States have signed FSAs for 1.964 Million Tonnes and drawingcoal accordingly. (v) After implementation of NCDP 417 LOAs were also issued to consumersof sponge iron CPP and cement as per recommendations of various SLC (LT) meetings for aquantity of 63.95 Million tonnes per annum. Out of these 337 FSAs have been concludedtill date for quantity of about 45.70 Million tonnes per annum. Out of these 170 FSAs areactive as on date with a quantity to the tune of 20.63 Million tonnes per annum.

(vi) Under the provisions of FSA CIL undertook import of coal for the power plantsopted for taking the same through CIL for the year 2015-16. CIL received an order of about3.5 LT of imported coal for the first half year (Apr 15-Sep15) from two power producers.The ordered quantity has been delivered through MMTC. There is no further order ofimported coal. Against import order of about 5 LT for 2014-15 CIL has supplied 4.83 LTout of which 3.3 LT of imported coal was supplied within March 2015.

(vii) Under Forward E-Auction scheme during the year ended Mar’16 quantityallocated was 5.916 Million Tonnes as against 3.593 Million Tonnes allocated in the lastyear. The notional gain through Forward E-auction over & above the notified price was29.44% during the year 2015-16. During the period under review 57.405 Million Tonnes ofcoal was allocated under Spot E- auction to the successful bidders as against 45.211Million Tonnes of coal allocated during the last year. The notional gain through SpotE-auction over & above the notified price was 33.74% during the year 2015-16.

3.6 Coal Beneficiation

Presently CIL is operating 15 Coal Washeries with a total coal washing capacity of 36.8Million Tonnes per year of which 12 are coking and the rest 3 are non-coking withcapacity of 23.30 MTY and 13.5 MTY respectively. The total washed coal production fromthese existing washeries for the year 2015-16 has been 17.21 Million Tonnes.

In addition to the above CIL has planned to set up 15 new Washeries withstate-of-the-art technologies in the field of coal beneficiation with an aggregatethroughput capacity of 112.6 MTY. Out of the 15 new washeries 6 are planned to washcoking coal with a cumulative capacity of 18.6 Mty 4 of which are at different stages ofconstruction and LOI has been issued for one.LOA/LOIs has been issued for 3 new non-cokingcoal washeries out of the balance 9 new non-coking coal washeries with a total capacity of94.0 MTY.

The major bottlenecks for setting up of these washeries are mainly ForestEnvironmental and other Statutory Clearances.

3.7 Stock of Coal

The Stock of coal (net of provisions) at the close of the year 2015-16 was Rs 6162.54crores which was equivalent to 0.98 month value of net sales. The company-wise positionof stocks held on 31st March’2016 and on 31st March’2015are disclosed under Annexure 10.

3.8 Trade Receivables

Trade Receivables i.e. net coal sales dues outstanding as on 31.03.2016 afterproviding Rs 2220.20 crores (previous year Rs 2510.32 crores) for bad and doubtful debtswas Rs 11463.70 crores (previous year Rs 8521.88 crores) which is equivalent to1.27 months gross sales of CIL as a whole (previous year 1.07 months). Subsidiary-wisebreak-up of trade receivables outstanding as on 31st March 2016 as against 31stMarch 2015 are shown in Annexure 11.

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

During the year 2015-16 CIL and its Subsidiaries paid/adjusted Rs 29084.11 crores(previous year Rs 21482.21 crores) towards Royalty Cess Sales Tax and other levies asdetailed below:-

Figures in Rs Crores
2015-16 2014-15
Royalty 8209.25 7760.10
Additional Royalty (MMDR Act) 434.42 -
Cess on Coal 1590.67 1457.41
State Sales Tax / VAT 2444.75 1997.89
Central Sales Tax 1144.79 996.11
Stowing Excise Duty 525.67 485.62
Central Excise Duty 3647.00 3853.58
Clean Energy Cess 9980.13 4198.93
Entry Tax 259.37 206.68
Others 848.06 525.89
Total 29084.11 21482.21

Subsidiary-wise State wise details are given in Annexure 12.


Raw coal production and production from underground and opencast mines.

Production of raw coal during 2015-16 was 538.754 million tonnes against 494.238Million Tonnes produced in 2014-15. Coal production from underground mines in 2015-16 was33.786 million tonnes compared to 35.042 million tonnes in 2014-15. Production fromOpencast mines during 2015-16 was 93.73% of total raw coal production. Subsidiary-wiseproduction Production from underground and opencast mines and production of washed coalis disclosed under Annexure 13.

Reasons for less production than the target 2015-16:

Despite the best and consistent efforts constraints that have impeded the growth incoal production are as under:

(i) In MCL Bhubaneswari OCP Belpahar OCP & Kanhia OCP had to restrict productiondue to EC capacity constraints. Lajkura OCP MCL is on the verge of closure due to delayin securing Stage-II forest clearance.

(ii) In ECL Rajmahal OCP was affected due to R&R issues as the demands of Lalmatiavillagers are beyond CIL’s policy and Coal stock has increased to 5.1 MTs against3.45 MT last year due to non-lifting of coal by different power utilities.

(iii) In SECL Saraipali OC could not start due to non-issuance of Stage-II FC. Therewas also delay in Kusmunda & Amera OCPs. There was restricted working space atDhanpuri & Amlai OCs of Sohagpur Area due to non-issuance of Forestry Clearance.

Washed Coal (Coking) Production

Subsidiary-wise production of Washed Coal (Coking) is disclosed as Annexure 13A.

Overburden Removal

Overburden Removal during 2015-16 was 1148.908 million cubic metres against 886.528million cubic metres achieved in 2014-15 i.e. a substantial growth of 29.60%. TheCompany-wise overburden removal is disclosed under Annexure 13 B.

Future Outlook

CIL has envisaged a coal production of 908.10 MT in the year 2019-20 with a CAGR of12.98% with respect to 2014-15. In the terminal year of XII Plan (2016-17) the target ofcoal production has been pegged at 598.61 MT with an annualized growth of about 11.6 %. In2017-18 the envisaged coal production projection is to the tune of 660.7 MT with a growthof about 10.5 %.

The capital expenditure for the year 2016-17 has been set at Rs 7765 crores. Inaddition an ad-hoc provision of Rs 2 Cr has been kept for its overseas activities.Further Company has planned to invest Rs 5069 crores in various other projects viz.Railway Infrastructure Super Critical Thermal Power Plant (STPP) Solar Power Revival ofFertilizer Plants Procurement of Railway wagons CBM etc. during 2016-17.


Population of Major Opencast Equipment (Heavy Earth Moving Machinery) as on 1.4.2016and on 1.4.2015 along with their performance in terms of availability and utilisationexpressed as percentage of CMPDIL norm is disclosed under Annexure 14.


The overall system capacity utilization for the year 2015-16 has worked out to be99.87%. It was 84.36 % during 2014-15. Subsidiary-wise details for the year 2015-16vis--vis 2014-15 are disclosed under Annexure 15.


7.1 Preparation of Reports:

As prioritized by subsidiary companies of Coal India Limited preparation of ProjectReports (PR) for new/expansion/re-organisation mines was carried out by CMPDI during theyear 2015-16 for building an additional coal production capacity to the tune of 96 MTY.During the period 260 reports were prepared including 17 Geological Reports 26 ProjectsReports 167 Other Reports (included 3 Master Plans of Coalfields and 3 Operational Plansof Opencast mines) and 50 EMPs (including 16 Form-I).

7.2 Project Implementation:

a) Projects Completed During the year 2015-16:

8 coal projects each costing Rs 20 Crores and above with an ultimate capacity of 48.23MTY have been completed during the year 2015 -16. The subsidiary-wise details of projectcompleted during 2015-16 is disclosed under Annexure 16.

b) Projects started Production during the Year 2015-16:

6 projects have started coal production during the year 2015-16.The subsidiary-wisedetails are disclosed under Annexure 16.

c) Status of Ongoing Projects:

123 coal projects and 33 non mining projects costing Rs 20 Crores andabove are in different stages of implementation. Out of 123 coal projects 57projects are running on schedule and 66 are delayed. Out of 33 non miningprojects 19 are on schedule and 14 are delayed.

Status of Ongoing Projects Costing Rs 20 Crores and above

Projects Total Projects Projects on Schedule Projects Delayed
Mining 123 57 66
Non Mining 33 19 14
Total 156 76 80

Reasons for the Delay:

Mining Projects:

34 coal mining projects are running behind the schedule due to delay in obtainingforestry clearances and 17 are due to delay in acquisition of land and associated R&Rissues. In addition to the above 7 projects are running behind the schedule due to delayor discontinuance of work or non-participation in tender by contractor 5 projects due tolaw and order problem and 3 projects due to lack of Railway Infrastructure facilities forcoal evacuation.

Non Mining Projects:

8 non mining projects are running behind the schedule due to discontinuance of work bycontractor law and order problem and miscellaneous issues. In addition to the above 4projects are delayed due to acquisition of land and associated problems of rehabilitationand 2 projects are delayed due to forestry clearances.

7.3 Projects Sanctioned (Costing Rs 20 Crores & above):

a) No Advance Action Proposal has been sanctioned by CIL Board during the year2015-16.

b) Projects sanctioned by CIL Board

9 coal mining projects for an ultimate capacity of 159.25 Mty and a totalcapital investment of Rs 26480.74 Crores have been sanctioned by CIL Board duringthe year 2015-16. The subsidiary-wise details of projects sanctioned by CIL Board in2015-16 is disclosed under Annexure 16.

c) Non Mining Projects Sanctioned by CIL Board:

One Non mining project with a total capital investment of Rs 3055.15 Crores has beensanctioned by CIL Board during the year 2015-16.

Project Subsidiary Date of Approval Sanctioned Capital (Rs Crores)
East Corridor Phase -I Rail Project CERL SECL SECL 05.03.16 3055.15

d) Projects Sanctioned by Subsidiary Company Boards:

9 coal mining projects for an ultimate capacity of 17.90 MTY and a total capitalinvestment of Rs 2925.84 Crores have been sanctioned by Subsidiary Coal Companies duringthe year 2015-16. The subsidiary-wise details of projects sanctioned by Subsidiary CompanyBoard in 2015-16 is disclosed under Annexure 16.

7.4 Revised Project/RCE Sanctioned by CIL Board:

a) No Revised Cost Estimates/Revised Project Report/ Updated Cost Estimateshas been sanctioned by CIL Board during the year 2015-16.

b) RCE/RPR/UCE sanctioned by the Subsidiary Boards:-

7 coal mining projects for an ultimate capacity of 12.57 MTY and a total capitalinvestment of Rs 2027.35 Crores were sanctioned by Subsidiary Company Boards during theyear 2015-16. The subsidiary-wise details of RCE/RPR/UCE sanctioned by Subsidiary CompanyBoard in 2015-16 is disclosed under Annexure 16.

7.5 Key Strategies:

(i) Critical Railway Links:

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

For speedy commissioning and implementation of these critical rail lines Joint VentureCompanies have been formed in tripartite partnership among Ministry of Railways Ministryof Coal and the respective State Governments.

(ii) Acquisition and Possession of land:

In all subsidiaries of Coal India the major portion of land is acquired under CoalBearing Areas (Acquisition & Development) Act 1957. During 2015-16 notificationunder Section 9 (1) has been issued for 7112.24 Ha and notification under Section 11 (1)has been issued for 7736.51 Ha. During 2015-16 4542.54 Ha of land has been taken inpossession in different subsidiaries of Coal India.

(iii) WEB Based Online Monitoring System:

Web based online monitoring of coal mining projects costing more than Rs 100 Crores hasbeen introduced in Coal India. Exercise for 30 projects costing more than Rs 100 Croreshave so far been completed during the year 2015-16. Additionally monitoring of 47 coalmining projects costing more than Rs 150 Crores with MS Project software have also beenstarted in Coal India Limited during the year 2015-16.

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

Till 31st March’2016 a total of 32 Project Reports have been approvedfor an ultimate capacity of 168 Mty.

However the realisation of the approved capacity will depend on timely acquisition ofland expeditious forest & environmental clearances and creation of evacuationfacilities for which concerted efforts of CIL Railways and State authorities are inplace.

Major Challenges

Three critical railway lines mechanization through latest technology upgrading skillsof employees speedy acquisition of land expeditious environmental and forest clearancesand fast track state level clearances are crucial for realization of 1 BT coal productionby CIL.


(i) CIL’s subsidiaries have undertaken the following measures interalia toconserve energy:

• CMPDIL HQ has undertaken energy conservation studies in 2015-16 and carried outDiesel Audit & Benchmarking of specific diesel consumption as well as Electrical Audit& Benchmarking of specific electrical energy consumption in various opencast andunderground mines situated in different subsidiaries of Coal India Limited by BEEaccredited Energy Auditors. The study revealed that there is a scope for saving in dieseland electrical energy and action has accordingly been taken in line with therecommendation of the above study.

• Project-wise specific consumption of diesel is also monitored in comparison tobenchmarking by CMPDIL for selected opencast projects (79 nos) of different subsidiariesof CIL.

• Apart from CMPDIL some outside agencies namely CIMFR (Central Institute ofMining & Fuel Research) was awarded for study of SDC (Specific Diesel Consumption) forGevra and Kusmunda OCPs of SECL PCRA (Petroleum Conservation Research Association) forSDC of Jambad and Rajmahal OCPs of ECL and SPC (State Productivity Council; a constituentof National Productivity Council GoI) for Electrical Energy Audit of Sonepur-Bazari Areaof ECL.

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

• Auto-timer switches for street lights are in use in various mine premises CHPsresidential areas etc. which avoid manual intervention for switching on / off the streetlights and adds in saving power consumption.

• Various energy conservation measures like procurement of energy efficientillumination system use of higher starred rating ACs installation of energy meters /power factor meters / demand controllers for monitoring and control of energy addition /replacement of power capacitors at suitable locations for improvement of power factorextensive use of Arial Bunch Conductors reduction in transmission & distributionlosses energy conservation measures in pumping system etc. have been taken and generalawareness propagated among all concerned for efficient use of energy.

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

(ii) In addition to above CIL / Subsidiary Companies are also pursuing use ofalternative energy sources. Various steps have been taken for utilizing solar power as analternate sources of energy some of which are as stated below:

• Over and above one roof top grid-connective solar plant of capacity 140 kWpinstalled in the new Corporate Office Building of Coal India Limited at New TownRajarhat Kolkata during 2014-15 another 20 kWp Grid Tied Solar Power Plant have beenadded one each of capacity 10 kWp on the roof-top of Club-Cum-Community Centre and TransitHouse during 2015-16.

• Apart from one roof top solar plant (grid-connective) of 200 kWp installed on01.09.2014 in CMPDIL HQ Campus Ranchi initiatives have already been taken for another 3such installations in the CMPDI RIs (Regional Institutes) with 80 kWp at RI-I 30 kWp atRI-II and 50 kWp at RI-VI respectively.

• Initiatives for solar based street light fittings with LED Lamps have been takenat CMPDIL for 289 nos. with aggregate capacity of 8.60 kWp for its various RIs.

• In megawatt scale one 2.016 MWp grid-connective solar power plant is insuccessful operation since it’s commissioning at MCL HQ premises on 13.10.2014.

• 160 kWp Rooftop solar power plant installed in 3 subsidiaries of CIL namely ECL(12 kWp) CCL (8 kWp) and WCL (140 kWp). Possible locations have been identified forinstallation of roof-top solar plants over service building workshop hospital canteenguest house etc. at different subsidiaries of CIL which is expected to add about 10 MWpsolar capacity in aggregate on commissioning.


Overall Capital Expenditure during 2015-16 was Rs 6123.03 crores as against Rs5173.49 crores in previous year.Capital Expenditure incurred during 2015-16 is102.21% ofBE (99.01% in 2014-15).Subsidiary-wise details of which are given in Annexure 17.


The authorized share capital of the company as on 31.03.2016 was Rs 8904.18 croresdistributed between Equity and Non-cumulative redeemable preference shares as under:

(i) 8000000000 Equity Shares of Rs 10/- each (Previous Year 8000000000 Equity Shares of Rs 10/- each) ` 8000.00 crores
(ii) 9041800 Non-cumulative 10% Redeemable Preference Shares of Rs 1000/- each (Previous Year 9041800 Non-cumulative 10% Redeemable Preference Shares of Rs 1000/- each) ` 904.18 crores
Total ` 8904.18 crores

Listing of shares of Coal India Limited in Stock Exchanges:

The shares of Coal India Ltd. is listed in two major stock exchanges of India viz.Bombay Stock Exchange and National Stock Exchange on and from 4th November2010.

The details of disinvestment of shares by Govt. of India is furnished below:

Sl No Financial Year of Disinvestment % of shares disinvested No. of shares disinvested Mode
1 2010-11 10.00% 631636440 IPO
2 2013-14 0.35% 22037834 CPSE-ETF
3 2014-15 10.00% 631636440 OFS
4 2015-16 0.001% 83104 CPSE-ETF

Hence the number of shares held by Govt. of India as on 31.03.2016 stood at5030970582 i.e. 79.649% of the Total share capital.

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

As on 31.03.2016 As on 31.03.2015
Shareholding Share Capital Shareholding Share Capital
Pattern (%) (Rs Crore) Pattern (%) (Rs Crore)
Government of India 79.649 5030.97 79.65 5031.05
CPSE - ETF 0.351 22.12 0.35 22.04
Other Investors 20.000 1263.27 20.00 1263.27
Total 100.000 6316.36 100.00 6316.36


Aggregate borrowings of CIL stood at Rs 269.76 crores in 2015-16 from Rs 208.21 croresin 2014-15 as detailed below.

Figures in Rs Crores
Particulars 2015-16 2014-15
Foreign Loans including deferred credits
EDC Canada 174.14 170.21
Liebherr France SA. France 7.77 7.40
IRCON International Ltd. 63.92 30.60
Chhattisgarh State Infrastructure Development Corpn Ltd. 23.93 -
TOTAL 269.76 208.21

The debt servicing has been duly met in case of the loans / deferred credits wheneverdue.

The subsidiary companies of SECL M/s Chhattisgarh East Railway Limited (CERL) &M/s Chhattisgarh East-West Railway Limited (CEWRL) have taken loan from IRCONInternational Ltd and Chhattisgarh State Infrastructure Development Corpn Ltd. withrepayment period of 5 years excluding moratorium period not exceeding 5 years from thedate of signing of Loan Agreement.


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

• Bring in proven and advanced technologies and management skills for exploitingUG and OC mines coal preparation and related activities.

• Exploration and exploitation of Methane from Coal bed abandoned mineventilation air shale gas coal gasification etc.

• Locating overseas countries interested in joint Venture in the field of coalmining with special thrust on coking coal mining.

The priority areas included acquisition of modern and high productive undergroundmining technology introduction of high productive opencast mining technology improvementin working in underground in difficult geological conditions fire control and minesafety coal preparation application of 3D seismic survey for exploration extraction ofcoal bed methane coal gasification application of Geographical Information Systemsatellite surveillance subsidence monitoring environmental control overseas ventures incoal mining.

CIL aims to acquire suitable technology through international bidding. Bilateralcooperation is also being encouraged for locating availability of cost effective andlatest technologies in the aforesaid areas. CIL therefore has been following both theroutes.

Following are the details of activities that took place with various countries during2015-16.


Indo-US Collaboration:

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

a) Development of Coal Preparation Plant Simulator

M/s Sharpe International LLC USA (SI) was awarded the work in October 2009 fordevelopment of Coal Preparation Plant Simulator. Total work was containing 18 activitiesout of which 11 activities were completed and payment to the tune of 40% value had beenreleased in line with the provision of the contract. Later in October 2013 the SIexpressed their inability to complete the work. The US representatives were requested totake up the matter with M/s Sharpe for a meaningful conclusion of the project.

In the last CWG meet held in USA on 16th Sept 2015 US DoE agreed ‘tocontact software developer and possibly assist in identifying an industry expert toreplace the original expert who is unable to finish the project’. Alternatively itwas decided that CMPDI would take necessary action to conclude the project.

Meanwhile Mr. Manoj Mohanty of Southern Illinois University vide email dated 8thJan' 2016 expressed willingness to complete the project that SI could not complete

In response to communication from CMPDI Mr. Mohanty vide email dated 19thMarch' 2016 communicated that detailed proposal would be submitted to DoE & MoCshortly.

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

The US DOE had identified Virginia Tech University (VTU) for establishing an efficienttechnique for beneficiation & dewatering of Indian coking coal mines through testingof coal samples in lab and pilot plants at VTU for identification of state-of-the-arttechnologies based on which a demonstration plant was to be installed in Sudamdih washeryin BCCL. A joint project proposal was drawn and approved by CIL R&D Board inDecember'2010. The VTU however expressed its inability to sign an internationalagreement and as such the project could not be started.

In the last CWG meet held in USA on 16th Sept 2015 Prof. Yoon of VirginiaTech University (VTU) informed that the technologies proposed earlier have been licensedto different companies and are available commercially. He also pointed out that VTU haddeveloped a Hydrophobic-Hydrophylic process (HHS) for Fine Coal Cleaning and would besubmitting a proposal on the same. The proposal is awaited. CMPDI requested Prof Yoon videemail dated 2nd March 2016 to send details of the technology of HHS for finecoal beneficiation and its commercial availability. The reply is awaited.

New Areas of Collaboration

a) Underground Coal Gasification (UCG): UCG is one of the key areas underlndo-US collaboration. A project brief for capacity building in the field of UCGdevelopment has been sent to MoC for consideration under India-US Coal Working Group forthe development of UCG in CIL command area.

Proposal related to UCG for capacity building was sent by MoC to Lead Coordinator– Indo-US working Group USA on 3rd June 2013.

In the Indo-US CWG meeting held on 16th Sep ’15 DOE agreed to identifyUS experts and inform the Indian side for further course of direct action which is stillawaited.

b) Planning large capacity opencast mines: The National Energy TechnologyLaboratory (NETL) USA has been entrusted with the responsibility for identifying suitableUS agencies for cooperation in this area. As advised by US side M/s Norwest Corporationand M/s Art Sullivan Mine Services were contacted by email on 8th September2014 and response from both was received. Subsequently the subject of "largecapacity opencast mine planning norms and standard safe designs and dumpoptimization" was finalized with M/s Norwest Corporation. CMPDI received the proposalfrom M/s Norwest Corporation on 29th Sep.’15 that includes cost estimates.The proposal was routed for legal vetting and financial evaluation at CMPDI. Subsequentlythe issue was also discussed during the visit of team from US consulate on 26thFeb' 2016 at CMPDI led by Consul General Mr. Craig. L. Hall who assured for help in thematter.

It has now been proposed by CMPDI to route the proposal through Coal S&T Grant ofMinistry of Coal Government of India or R&D funding of CIL. Subsequently M/s NorwestCorp was requested (March 2016) to provide their view point on routing the proposalthrough S&T grant or R&D funding as the project parameters / conditionalities andcost might change. M/s Norwest Corp vide email dated 21st March 2016indicated willingness to prepare proposal in prescribed format under format of S&T/R&D.

c) Mine Rehabilitation & Reclamation of Indian Coal mines: Projects onsustainable mine closure activities and mining wasteland to be utilized as a source oflivelihood for local community were proposed to be carried out with the help of USagencies. For this purpose a technical presentation was made by CMPDI on 10thMarch 2014 in Delhi and possible areas of cooperation were discussed. It was advised byUS Side to contact M/s Norwest Corporation & M/s Art Sullivan Mine Services forfurther assistance.

In the meantime an Indo-US CWG meeting was held at Washington DC on 16thSep.’15 for review of Indo-US collaborative projects. In the meeting M/s Norwest andM/s Art Sullivan Mine Services with Mill Creek Engineering agreed to send detailedproposal for consideration by CMPDI by the end of October 2015. The proposal has howevernot been received so far. Further draft proposal received from M/s Norwest Corporationon 15th December 2015 was examined and sent for legal vetting and financialevaluation at CMPDI. Meanwhile the issue was also discussed during the visit of team fromUS consulate on 26th Feb' 2016 at CMPDI led by Consul General Mr. Craig. L.Hall who assured of help in the matter. It has now been proposed by CMPDI to route theproposal through Coal S&T Grant of Ministry of Coal Government of India.Subsequently Norwest Corp was requested (March 2016) to provide their view point onrouting the proposal through S&T grant as the project parameters/ conditionalities andcost might change. Norwest Corp vide email (21st March '2016) indicatedwillingness to prepare proposal in prescribed format under Coal S&T Grant of MoC. Asdesired by Norwest Format & link of site was e-mailed on 21st March'2016.In the meanwhile it is also proposed to discuss the issues with Indian counterpartof Norwest Corp for preparing the proposal.

d) Advanced Dry Coal Beneficiation technology:

Dry Coal beneficiation is a priority area identified under the Indo-US CWG. Mr. ManojMohanty of Southern Illinois University Carbondale submitted a short proposal on Dry JetSorting Technologies through US DOE in Aug.14 which is based on X-Ray detection andpneumatic sorting technology similar to ArdeeSort CMPDI is already trying under R&DProject at Madhuband washery BCCL. During the last CWG meet held in USA on 16thSept. 2015 at Washington DC Mr. Manoj Mohanty was contacted to submit a proposal on FGXDry Coal separator which he also confirmed through email dated 8th Jan' 2016.The proposal is awaited in spite of follow-up from CMPDI.

Indo-Australian Collaboration

Ventilation Air Methane (VAM): CMPDI on behalf of CIL has formulated a projectjointly with CSIRO titled "Abatement and utilization of Ventilation Air Methane (VAM)from working underground degree – III coal mine in India". The implementingagencies for the project will be CSIRO and CMPDI with BCCL as a sub-implementing agency.Identified project mine is Moonidih in Jharia Coalfield of BCCL. CIL R&D Board hasapproved the project in principle with 100% retroactive funding at present and in duecourse 40% should be reimbursed from National Clean Energy Fund (NCEF) with duration ofproject as 36 months with the consent of CSIRO. Revised proposal has been submitted forcompetent approval.

CMM Development: CMPDI has identified potential collaborative areas in the field ofClean Coal Technology in association with CSIRO under existing MoU between CMPDI andCSIRO. CSIRO & CMPDI joint research project under Coal S&T Grant titled"Capacity Building for Extraction of CMM Resource within CIL Command Areas" hasbeen sanctioned in March’16.

New Areas of Collaboration

Underground Coal Gasification (UCG): In India – Australia Energy SecurityDialogues held during 8th – 11th February 2016 at Brisbanefor the development of Underground Coal Gasification (UCG) Australian companies like M/sCarbon Energy Limited was asked to look forward for the opportunities coming up in Indiain view of the recent UCG policy of Government of India. A meeting via Conferencing(Video/Tele) was organized by Austrade/Delhi on 31st May 2016 where M/s CarbonEnergy Ltd shared their accomplishment based on Blood Wood Creek UCG Pilot project inAustralia. QLD Keyseam project further development is pending for their Govt. approval.

CBM/CMM Development in CIL Command Area: In India – Australia Energy SecurityDialogues held during 8th – 11th February 2016 at Brisbane theAustralian technology providers and experts from the Australian Universities came forwardfor participation in developing CBM/CMM areas under the leasehold of CIL in view of newpolicy of Government of India permitting CIL to exploit CBM/ CMM on commercial lines.University of New South Wales (UNSW) has been requested to provide list of experts andtechnology providers.

Indo-Japan Coal Working Group

Areas of co-operation discussed under this working group in Sept.15 through VideoConference and status till March 16 are as follows: Dry Coal Beneficiation: Acommunication was sent to Chairman M/s Nagata Engg Co. Ltd vide email dated 19thMarch' 2016 requesting him to send the detail technology including specification andperformance data commercial availability of the separator and cost thereof with supportof any kind etc. The response is awaited from his side. The issue is being followed upfrom CMPDI’s end continuously.

Slope Stability Monitoring: A communication was sent in March 16 to Dr. HidekiShimanda of Kyushu University Japan to share their technical expertise and valued opinionunder Indian geo-mining condition. Reply is awaited.

Subsidence Measurement & monitoring using DINSAR Technology: Communication wassent to Mr. Tomoni Deguchi NM Consultants Tokyo Japan whose reference was given by Mr.Masafumi Uehara Japan Coal Energy Centre for cooperation in the area of Remote sensingfor subsidence measurement and monitoring using DINSAR technology.Accordingly in responseto copy of the email to Mr. Uehara it has been communicated on 20th March'2016 that they will send reply after discussion of the matter in the internal meeting fromJapanese side. Further response is awaited. Further an e-mail was received on 31stMarch' 2016 from Mr. Deguchi NM Consultants Tokyo Japan showing interest forIndo-Japan Collaborative project on the said technology.

Indo-Poland Collaboration

Secretary (Coal) met Polish delegation on 27th Oct' 2015. Keeping in view ofthe technical expertise in coal mining in Poland the following areas for cooperation wereproposed:

1) Capacity Building Programme for training of India Mining Engineers at KRAKOW MiningUniversity

2) Mechanised shaft sinking/deepening/ drift drivage and

3) Dealing with mine fires in Jharia Coalfield.

The views of CMPDI/CIL on the proposed areas of cooperation are:

1) Short term or medium term intensive training programme may be organised at KRAKOWMining University Poland for planning for deep underground mining projects HardRoof/Strata Management in coal mines and faster extraction of coal from underground minesusing high speed stowing techniques.

2) For mechanised shaft sinking/deepening/drift drivage production subsidiaries of CILmay be requested to intimate their Polish counterpart whenever such tenders are beingfloated.

3) Mapping of fire area in Jharia Coalfield is being done by CMPDI since 2012 usingThermal Infrared Satellite data. Any advance method which could be used to identify thefire areas more precisely using satellite data or any geo-spatial technique which can beapplied may be tried for such studies and implementation under assistance from Poland.

Indo-EU Collaboration

The 9th meeting of Indo-EU Working Group on Coal and Clean-Coal technologiesmeeting was held on 10th to 11th September 2014 at PotsdamGermany. One of the key areas for cooperation is the development and deployment ofadvanced coal mining. The aim of advanced coal technologies is to increase the efficiencyand safety in coal production and to mitigate environmental & social impacts.Co-operation of EU was sought for various aspects related to coal mining like steeplydipping deep-seated coal seams as under:

• Innovative mining technologies and environmental friendly solutions.

• Development of technology for deep coal mines and possible solutions for Indianconditions.

• Technological improvements to manage these risks especially on the preventionand include rock stress monitoring system mine atmosphere control and methane drainagetechnique personnel tracking system and staff training for emergency situations.

• The need to modernize develop and adopt technologies for high capacity andproductive underground coal mining from deep and thick coal seams.

• Underground coal mining technologies for mass production for steep and gassycoal seams.

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

A proposal titled "Introduction of a new underground mining technology atNorth-East Coalfields in Assam India" was placed before the Indo-EU Working Group onclean coal technology for consideration in 2012. The feasibility study to design asuitable mining technology and operation was awarded by the European Commission to aSpanish Consortium led by M/s AITEMIN. The members from the Spanish Consortium visited theNorth-East Coalfields in Assam India from 10-14 Feb. 2014 for preliminary discussions anddata collection. The feasibility study report was submitted to the European Commission inOct. 2014. Recently in Dec. 2015 soft copy of the report has been received through M/sAITEMIN. However the feasibility study report is yet to be made available to CIL/ CMPDIby the European Commission.

New Area of Collaboration:

During 8th India-EU CWG meeting held in Chennai from 28th –29th Nov.’13 a presentation was made by CMPDI on reclamation practicesland management and utilization of mine voids for storage of mine water which is generallyof good quality. Technical knowhow from EU was sought to bring back the post-mining landuse pattern as existing before the mining and utilization of the same for incomegeneration for the local community. A presentation on the requirement of the technicalassistance was made by CMD CMPDI during 9th India-EU CWG meeting held inGermany from 10th – 11th Sept.’14. However offer ofassistance is still awaited from the EU side. Also a meeting was scheduled on 8thJuly 2016 under Indo-German which could not be held. A similar project "Design anddevelopment of post-closure land reclamation plan for sustainable use of mined out area inIndian Coal Mines" is now proposed to be taken through M/s Norwest Corporation underIndo-US CWG.

Other activities through international cooperation:

a) Shale gas: In the Indo-US Working Group Meeting held on 16thSeptember 2015 at Washington USA it has been agreed that potential businesscollaboration will be identified for shale gas assessment in "Barren Measures"above coal seams.

b) CMM/CBM Clearinghouse: US Environmental Protection Agency (USEPA) representativeMs Felicia A Ruiz Climate Change Division US Environmental Protection Agency WashingtonDC along with Mr Jonathan Kelafant visited CMPDI (HQ) on 9th – 11thFebruary 2016. During the visit activities of India CMM/CBM Clearinghouse was alsoreviewed and appreciated by USEPA. Under GMI initiative a Pre-feasibility study onpre-mine methane drainage feasibility for (a) Sawang UG mine East Bokaro Coalfield in2014 and (b) Chinakuri UG mine Raniganj Coalfield in 2016 has been undertaken by theUSEPA Consultant under the Coalbed Methane Outreach Program (CMOP) and during the visitPre-feasibility study on CMM drainage at Chinakuri Mine (ECL) was also deliberated alongwith mine officials. Mr Craig L Hall Consul General US Consulate Kolkata also visitedIndia CMM/CBM Clearinghouse on 26th February’2016 and appreciated theaccomplishments.

c) Research & Development Activities

R&D Project on "Green House Gas Recovery from coal mines and coal beds forconversion to Energy":

A multi-organisation multi-nation international collaborative project with 12participating organisations and 5 countries (India China UK Slovenia Slovakia) andfunded by European Union Research Commission (EURC) was pursued at Moonidih mine of CIL byCMPDI. The project was completed in July’15.



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

The prospecting licenses no. 3450L & 3451L covering a total area of 224 sq. kmwere awarded to CIAL a wholly owned subsidiary of CIL with validity from August 2009 toAugust 2014 and subsequently extended upto August 2019. The following activitiespertaining to the above license areas have been undertaken in 2015-16:

Out of 224 of the total license areas 170 area having no occurrence ofcoaly horizons till a depth of 500 m as revealed in the Geological Report has beensurrendered to the Government of Mozambique. The remaining 54 area has been retainedfor which the Government of Mozambique has issued new licenses valid till August 2019.

Based on the results of various exploration activities in the license areas 3450L and3451L the Geological Report has been prepared. A Mineability Study has been undertakenbased on the findings of the Geological Report.The findings of the Mineability Studyrevealed that it is technically not feasible to do mining in the license areas of CIAL.Accordingly CIL Board accorded its approval for surrender of prospecting license nos.3450L and 3451L of CIAL to the Government of Mozambique. Pursuant to this decisionapplications for complete surrender of prospecting license nos. 3450L and 3451L have beensubmitted to the National Institute of Mines (Instituto Nacional de Minas) Ministry ofMineral Resources and Energy Government of Mozambique. The response of the Government ofMozambique is awaited.

(B) Acquisition of coal assets in South Africa through G2G route:

The CIL Board has accorded approval to the proposal for execution of MOU between CILand African Exploration Mining & Finance Corporation SOC Ltd. (AEMFC) an entityowned by the Government of South Africa for identification acquisition explorationdevelopment and operation of coal assets in South Africa. The decision of the CIL Boardhas been communicated to AEMFC requesting them to finalize the date and venue for signingthe MoU.

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

Government of India has sanctioned Rs 385 Crores for setting up of APO & ATO andits running for the period 2015-20 at Mozambique with CIL as the implementing agency forsetting up of these Institutes.


Revival of Talcher Unit of FCIL through Joint Venture Company

A Joint Venture Company comprising RCF FCIL GAIL and CIL has been registered forsetting up a coal based Ammonia-Urea Complex at the premises of the defunct fertilizerplant at Talcher.


The Master Plan for dealing with fire subsidence and rehabilitation in the leaseholdof Bharat Coking Coal Limited (BCCL) and Eastern Coalfields Limited (ECL) was approved on12th August 2009 by Govt. of India with an estimated investment of Rs 7112.11crores for Jharia Coalfields and Rs 2661.73 crores for Raniganj Coalfields. Implementationperiod has been delineated as 10 years.

High Powered Central Committee meetings were conducted under the Chairmanship ofSecretary (Coal) MoC to review the activities of implementation of Master Plan. Twelvemeetings were conducted so far last meeting was held on 29th Feb' 2016.

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

A. Summarized Status of Implementations of Master Plan in the leasehold of EasternCoalfields Ltd.

Seven Surface Fires identified in the approved Master Plan have been doused byblanketing with thick layers of earth to save the life and properties of the inhabitants.

Demographic Survey work has been completed for all 126 locations out of 141 identifiedlocations as 10 locations having no habitation and 3 locations have only ECL population.In 2 locations survey work could not be completed due to public agitation. The final listhas already been published which contains 44598 households. Photo Identity Card (PIC) hasbeen distributed to 43087 persons out of total of 44598 persons. Most of the employeesresiding in 3 locations have been shifted and remaining persons were allotted quarters andare in the process of shifting.

According to the approved Master plan about 896.29 ha. (2214 Acres) land would berequired for resettlement of non-ECL families. ADDA has submitted a list of vested landsin different patches to ECL authority with a total area of 929.62 Acres requiring NOC forconstruction of Rehabilitation Township. Out of this for 929.62 acres of land NOC hasbeen issued by ECL authorities for a total of 401.96 acres of land. ECL requested ADDA tosupply Mouza Maps and a plan showing the position of all vested lands with latitude/longitude to examine the mineable coal reserves in the balance portion of the land. ADDAinformed that Detailed Project Report (DPR) to be prepared for 1st phase ofrehabilitation within 209 acres of land where about 16700 dwelling units with otherinfrastructures and amenities can be provided.

i) Diversion of National Highway-(NH-2) and District Board (DB) Roads.

National Highway Authority of India (NHAI) suggested for stability test to be carriedout for the unstable part of NH-2 by other agency. Work for Geotechnical investigation forStability Analysis has been awarded to CIMFR Dhanbad in March 2016.

ADDA informed that DPR of the 3 roads 2 in Salanpur Area at Mohanpur andGourangdih-Begunia and 1 at Satgram Area at Ratibati has been sent by ADDA to Additional.Chief Secretary C&I Dept. Govt. of W.B. duly vetted by Chief Engineer Western ZoneP.W.D. for approval. ECL also informed that it has given acceptance of estimate of Rs15.42 Crores for diversion of DB Roads from subsidence prone area of Raniganj Coalfields.

ii) Diversion of Railway line:

Andal-Sitarampur Railway line: RITES submitted FSR on 29th Sep' 2015with an approximate estimated cost of Rs 58515.10 Lakh for total diversion length of

20 Km .After detail discussion with M/S RITES and ECL authority it was proposed toreview the diversion route to reduce the estimated cost.

RITES has submitted revised FSR on 10th March' 2016. The original FSR withrevised part examined in detail and was found in order. RITES submitted the original FSRto Railway Authorities in advance for their approval.

iii) Diversion of Indian Oil Corporation Limited (IOCL) pipeline:

IOCL informed that second tier survey report has been submitted by National Instituteof Rock Mechanics (NIRM) Bangalore which is under examination.

B. Summarized Status of Implementations of Master Plan in the lease hold of BharatCoking Coal Ltd.

Reduction in Fire area: The coal mine fire survey/ study was instituted by BCCLthrough National Remote Sensing Centre (NRSC) ISRO Deptt. of Space Hyderabad fordelineation of surface coal fires in Jharia Coalfield. NRSC has submitted their report inwhich they have concluded that the present fire area in the coalfield is only 2.18 includes both over burden dump fire and active fire. In the Master Plan totalsurface area affected by fire described as 8.9 NRSC has deduced these findings fromthe State of Art Satellite based technology. Action is being taken by BCCL for dealingwith fire as stipulated in the Approved Master Plan. NRSC has been requested to repeat thesatellite TIR survey. NRSC has confirmed for survey in June 2016.Once the finding of NRSCare submitted after the survey is completed BCCL would improvise the fire action plan forspeedier liquidation of fire area.

As per Master Plan total 54159 families' in 595 sites were to be surveyed. CIMFR ISMwhiz Mantra and JRDA has completed survey of 595 sites for 91879 families of encroacherssurvey of private houses is yet to be done (as reported by JRDA). Issue of Photo IdentityCards (PICs) are completed for 52826 families.

3360 houses have been constructed in Belgoria Rehabilitation Township "JhariaVihar" in which1528 houses are allotted to affected non-BCCL families and 1374families are shifted. Construction of 4000 units are in progress out of which 1008 unitsare completed. Letter of acceptance has been issued by JRDA for construction of 4000 unitsmore. For further 10000 units JRDA is processing tendering procedure.

In order to shift BCCL employees residing in fire affected areas 1496 houses have beenbuilt by BCCL in non-coal bearing zone and Families from fire & subsidence places havebeen shifted to these houses and are occupied. Further construction of 14356 units by BCCLis under progress and in different stages of completion.

Status of land acquisition by JRDA for rehabilitation sites

About 1105 ha land (say 2730 Acres) would be required for resettlement of non-BCCLfamilies as per the provision of Master plan.

• Proposal for acquisition of 352.27 acres of Raiyati land have been sent to DLAODhanbad but now the process has to start afresh under the new LARR Act 2013. Request hasbeen made by JRDA to Joint Secretary Ministry of Coal to accord permission to initiateproceeding for land acquisition.

• JRDA has taken ownership of 140.92 acres of land from DLAO.

• NOC of 86.44 acres of vacant land in Bhuli Township and 849.68 acres of non-coalbearing land in and around Belghoria Township belonging to BCCL has been accorded by MoCwhich has been communicated to JRDA along with all the required mouza plans fordeveloping new Township by JRDA.

Coal India Ltd has infused Rs 160.79 crores to ECL and Rs 824.80 Crores to BCCL tillMarch 2016 for implementation of Master Plan.


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

EIA/EMPs for all the new and expansion projects as per EIA Notification SO 1533 dated14th September 2006 of MoEF are prepared for peak and normative capacities andenvironmental clearance is obtained. During the year 2015-16 CMPDI has prepared a totalof 16 Form-I and formulated 34 Draft EIA/EMPs. 23 environmental clearances were alsoobtained from MoEF for different Projects/Group of Mines Washeries and Sand Mine Projectof CIL during the year 2015-16.

15.2 Pollution Control Measures and their Efficacy

Coal India has been playing a proactive role in environment protection so as toensure that its mining operations are carried out in an environmentally compatible manner.Pollution control measures are taken concurrently with mining operations for maintainingacceptable levels of major physical attributes of environment namely air waterhydrogeology noise land & nearby population.

(A) Air Pollution Control Measures:

Dust being generated during drilling blasting loading transportation ofcoal for which Coal India Ltd. takes various initiatives to mitigate the same based on theEnvironmental Management Plans (EMP) already prepared before commencement /enhancement ofproduction from coal mines. This EMP is prepared after assessing the impact on existingenvironment and forest due to coal mining projects through Environment Impact Assessment(EIA) study of each project. The air pollution control measures are as follows:

• Suitable water spraying systems for arresting fugitive dust in roads washeriesCHPs Feeder Breakers Crushers coal transfer points and coal stock areas are beinginstalled. Mist spray systems have been introduced along conveyor routes transfer pointsand on bunkers. Mobile water sprinkling has been provided in all the haul roads of OCmines. In addition to these the projects are enhancing the water sprinkling throughengagement of contractual water tankers. Automatic sprinklers have also been installed inCHPs. Besides these following steps are taken:

a) Mobile sprinklers have been deployed along haul roads so as to control dustgenerated by truck movement and dumpers.

b) Optimum loading of coal trucks to avoid spillage on roads.

c) Covering of coal trucks by tarpaulin is a practice being followed to avoid spillageof materials during transport.

d) Blacktopping strengthening of coal transportation roads are regularly andscientifically done.

e) Plantation in the mining activity areas along roads to create green belts in andaround the mines. Plantation along avenues and around mines are also being carried out.

f) Switching to eco-friendly mode of transport: In order to reduce the dust pollutiondue to road transportation eco-friendly measures are being adopted. Coal to thermal powerstations who consume more than 80% of thermal coal is transported by rail / series ofbelt conveyors to thermal power stations & rail heads are constructed to make railhead available nearer to mine to reduce road transportation. CIL have constructed / areconstructing integrated CHP for rapid loading wagon and trucks.

g) Covered conveyors are also adopted for transportation of coal to thermal power plantin an environment friendly way in some of the mines. The sides of CHPs are also covered byside cladding with GI Sheet to control pollution at source.

h) In order to prevent dust at source itself use of dust extractors / wet drillingsystems are being undertaken.

i) Controlled blasting / habitation away from the mines have been introduced as far aspossible.

j) Adoption of modern technologies like Surface Miners at different subsidiaries ofCIL which generates lesser air borne pollution for carrying out mining activities ascompared to conventional methods as drilling blasting & use of explosives areeliminated. During the year 2015-16 CIL has produced about 44% (234.652 M Tes) of itsproduction from open cast mines through Surface miners. Continuous miners contributedabout 3.333 M Tes of production from underground mines.

k) Ambient air quality in and around the mine site is being monitored fortnightly.There are required numbers of ambient air quality monitoring stations as stipulated inenvironmental rules and regulations which are being monitored on fortnightly basis as perEnvironment (Protection) Act 2006 and reports are regularly submitted to SPCBs and MOEF.

l) Continuous Ambient Air Quality Monitoring Stations (CAAQMS) are installed / beinginstalled in large mines of CIL.Continuous Ambient Air Quality Monitoring Stations havebeen installed at 4 locations in SECL. CAAQMSs are under process of installation atlocations 3 in BCCL 1 in WCL & 10 in NCL. CIL has agreed to install 16 CAAQMS in thedifferent cities of country as decided by CPCB.

(B) Mine Water Management:

Water which pumped out from the underground and opencast mines are contaminatedwith suspended particles. Some small quantity of water being contaminated during washingand cleaning of HEMM. CIL also takes initiative by treating these water. The treated wateris being supplied to the local villages after mine consumption Quality of the finaleffluent is monitored in terms of the relevant Indian standards.

(C) Noise Pollution Control Measures:

For control of noise pollution following measures are adopted:

i) Proper maintenance of equipment to minimize vibration.

ii) Green belt provided around the mine as well as residential area.

iii) Controlled Blasting & blasting in only day time.

iv) Use of Surface Miner Continuous Miner & High Wall mining which extract coalwithout blasting.

iv) Ear Muff or Ear Plugs provided to Workers at highly noisy areas.

(D) Land Reclamation:

Reclamation of the mined out areas and external OB dumps is a major environmentalmitigatory activity taken up by Coal India Ltd. In all new mines reclamation of mined outareas being done as per the Environmental Management Plan approved by MoEF and backfilling of the OB material in the mine voids is a part of the mining operation cycle.Topsoil preservation storing and use in the plantation areas of the reclaimed areas arebeing done in the opencast mines wherever necessary. Concurrent reclamation andrehabilitation of mined out areas (subject to technical feasibility as per geo-miningconditions) are taken for gainful land use. Opencast mines are filled up with overburdenextracted during the process of extraction of coal and after technical reclamation iscompleted plantation is carried out which is termed as biological reclamation.

• Eco-restoration: For effective Bio- reclamation of disturbed landscientific studies are carried out to select suitable species of plants for each coalfieldand sustainable sequence of reclamation from grass to shrubs to trees. Forest ResearchInstitute (FRI) have been engaged by CIL for sharing their expertise in the field ofeco-restoration in the reclaimed areas. ECO restoration site developed in DamodaTetulmari of BCCL with technical guidance of FRI.

• Eco-park in Reclaimed land: Eco Parks have been developed in many of themined out areas of CIL (Gunjan Park of ECL Ananya Vatika of SECL Nigahi of NCL Saunerof WCL etc.).

• Monitoring of Reclamation: CIL introduced state-of-the-art SatelliteSurveillance to monitor land reclamation and restoration for all opencast projects. Theland reclamation and rehabilitation operations are being monitored by SatelliteSurveillance. 50 major OCPs excavating more than 5 MM3 (Coal+OB) per annum arebeing monitored every year while remaining OCPs excavating less than 5 MM (Coal+OB) perannum are being monitored every 3rd year. This gives a clear picture ofreclamation which otherwise is difficult to accurately estimate.

• Mine Closer Plan: Mine closure plan is an integral part of the projectreport prepared by CMPDIL for Coal mines after exhaustion of reserves of a mine. Thisprogressive mine closure plan also forms a part of the EIA/EMP prepared and submitted toMOEF for Environmental Clearance. The progressive reclamation of mined out areas areinbuilt in the project cost and is implemented accordingly. After exhaustion of reservesstatutory obligations in respect of closure are also followed. CIL is practicing mineclosure very effectively .CIL is committed for restoration of abandoned / mined out areasin a socially acceptable & environment friendly manner.

(E) Strive for continual improvement in environmental performance by setting targetsmeasuring progress and taking corrective action.

CIL has engaged Indian Council of Forestry Research & Education (ICFRE)Dehradun for Environmental Audit of 20 OC Mines of CIL which is intended for third partyinspection verification of the existing levels of pollution vis-a-vis the laid downstandards and to delineate the compliance status of major projects in addition to theinspection carried out by the statutory authorities like CPCB/SPCB etc. ICFRE willrecommend if considered necessary for supplementary actions to be taken in order tofurther improvement of environmental performance of identified CIL mines

CIL has signed an MoU with National Environmental Research Institute(NEERI) Nagpur on3rd Dec. 2015 to carry out studies monitoring and collaborative research workfor "Sustainable Coal Mining in CIL".CIL is in the process of finalization ofCarbon assessment study in SECL and NCL through NEERI. NEERI is also studying on theeffectiveness of supplying de-shaled/dry-beneficiated / washed coal (reduction in ashcontent by 5-6%) to power plants following all pollution control measures.NEERI willsubmit environment management plan for mitigation of impact on regional environmentalquality due to supply of deshaled / dry –beneficiated coal to power plants in contextof prevailing pollution control practices.

(F) Solar Energy/ Energy efficient Initiative by Coal India Ltd:

CIL has signed an MoU with Energy Efficiency Services Limited (EESL) to promote energyefficiency provisions in CIL and its subsidiary companies.

To promote Green Initiatives taken by GoI CIL has submitted Green Energy Commitmentletter to MNRE for developing 1000 MW Solar Power Projects during 2014-19. Forimplementation of these projects CIL has signed an MoU with Solar Energy Corporation ofIndia (SECI).

In the 1st phase CIL is going to set up 2x100 MW Solar Power Plants in thestate of Madhya Pradesh. In the 2nd Phase CIL is going to develop a capacity of600 MW in the Solar Parks of Madhya Pradesh Chhattisgarh West Bengal and Maharashtra forwhich NIT has already been floated by SECI.

CIL’s initiatives has resulted in installation of 2.0 MW capacity 0.19 MWcapacity and 0.14MW Solar PV power plants in MCL Burla ; CMPDIL Ranchi and CIL HQ atKolkata respectively.

15.3 ISO 14001 System

The implementation certification and re-certification of different units of CILagainst ISO: 14001 (Environmental Management System) is continuing. As on 31stMarch’2016 a total of 29 units and two companies (MCL & NCL) are certified asper ISO: 14001 standards.

With the success of a companywide Integrated Management System (IMS) in MCL & NCLthe transition from unit wise certification to the companywide Integrated ManagementSystem has begun in ECL CCL & BCCL during 2015-16. It is expected that by April 2017ECL CCL & BCCL would be able to get certifications for companywide IMS which includesISO: 14001.

15.4 Assessment of Impact of Coal Mining in different coalfields

Vegetation cover mapping of six coalfields viz. Karanpura East Bokaro WestBokaro Korba Bander and Singrauli coalfields based on satellite data have been completedduring the year 2015-16 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.

15.5 Resettlement & Rehabilitation Policy of CIL

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

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

The R&R Policy of Coal India Ltd. provides for payment of land compensation andsolatium employment or lump sum monetary compensation and annuity compensation forhome-stead lump sum payment in lieu of alternate house site subsistence allowance toeach affected displaced family etc.

15.6 Mine Closure Plans

In terms of the revised guidelines issued by Ministry of Coal (MoC) in 2013 CMPDIhas prepared 37 mine closure plans for CIL mines during the year. Quick comments on 28mine closure plans for coal blocks sent by MOC were also prepared and sent to MoC duringthe year.


16.1 Collaborative commercial development of CBM in Jharia & Raniganj coalfields bythe consortium of CIL & ONGC.

The Govt. has allotted two CBM blocks in 2002 namely Raniganj North CBM block inRaniganj Coalfield and Jharia CBM block in Jharia coalfield to the consortium of ONGC& CIL on nomination basis for commercial development of CBM. CMPDI is implementing theprojects on behalf of CIL. ONGC is the Operator for both CBM blocks and carrying out theproject works as per the provisions of contractual agreement with the Govt. of India andOperating Agreement entered into between ONGC & CIL. On completion of CIL part ofMinimum Work Programme by CMPDI and Pilot Appraisal activity by ONGC Field DevelopmentPlan (FDP) was formulated by the Operator i.e. ONGC for both the CBM Blocks.

The FDP for both the CBM Blocks were approved by Govt. of India in July 2013. PetroleumMining Lease (PML) for Jharia CBM Block has been granted by State Government of Jharkhandin July 2015. However works of Field Development Phase in Jharia CBM Block could not bestarted due to non-availability of Environmental Clearance (EC). In Raniganj North CBMBlock also the work of Field Development Phase could not be started due tonon-availability of PML & EC. Further there are certain issues of overlap of BengalAerotropolis Project Ltd. (BAPL) infrastructure development & few Coal Blocks inassessed area of Raniganj CBM Block. Matter has been taken up at appropriate level forresolving the issues.

16.2. CBM related studies:

CMPDI and GSI are carrying out studies related to "Assessment of CoalbedMethane Gas-in-Place Resource of Indian Coalfields/Lignite fields" in selectedboreholes being drilled under Promotional Regional exploration since X Plan period underPromotional Regional Exploration (PRE) funding.

A total of 60 boreholes (40 by CMPDI and 20 by GSI) will be taken up for CBM specificdata generation during XII Plan. So far studies have been completed by CMPDI in thirtytwo (32) boreholes and in eighteen (18) boreholes by GSI during the XII Plan period.During the year 2015-16 studies has been done in eight (8) boreholes by CMPDI and seven(7) boreholes by GSI. CMPDI & GSI have completed CBM specific studies in 121 boreholes(83 by CMPDI &38 by GSI) since commencement of the work.

A total of twenty one reports have been submitted by CMPDI since April 2007. Duringthe year 2015-16 following three reports based on CBM related studies have beensubmitted:

a) Subhadra West block Talcher Coalfield

b) Dolesara block Mand-Raigarh Coalfield.

c) Brahmanbill block Talcher Coalfield.

16.2.1 S&T Project on "CBM Reserve Estimation for Indian coalfields"

S&T project on "CBM Reserve estimation for Indian coalfields" hasbeen approved under EoI of Coal S&T project. The project is of 3 years duration witheffect from 24th March 2014. IIEST (BESU) Shibpur is the main implementingagency and NGRI Hyderabad; TCE Kolkata &CMPDI are co-implementing agencies for thisproject. An area in South Karanpura Coalfield has been finalized for taking up 2D/3DSeismic survey by NGRI.

16.3 Shale gas related studies:

CMPDI is carrying out studies related to "Assessment of Shale Gas-in-PlaceResource of Indian Coalfields/ Lignite fields" through boreholes being drilled underpromotional exploration since XII Plan period under PRE funding of Ministry of Coal. Thisstudy will create the data for assessment of shale gas potentiality and facilitatedelineation of more blocks for shale gas development.

Shale gas specific data generation has been planned in 25 boreholes during XII Planperiod. Out of these so far shale gas studies have been completed in twenty (20)boreholes including five (5) boreholes taken up for study during 2015-16.

16.3.1 S&T Project titled "Shale gas potentiality of Damodar Valley basin ofIndia"

S&T project on "Shale gas potentiality of Damodar basin of India" isunder implementation by NGRI Hyderabad as the principal implementing agency and CMPDI& CIMFR as sub implementing agencies. The project completion schedule has been revisedto May 2017 with total project cost of Rs 20.38 crore. The project objective is toevaluate potentiality of Shale gas in Damodar basin through integrated geophysicalgeological geo-chemical and petro-physical investigations. Initial studies are being donein Rangamati B block (Tumni & Kanchanpur Sector) of Raniganj Coalfield where NGRI willtake-up the 3D seismic survey and 2D Seismic survey. NGRI has taken-up preliminaryactivities to start the studies. On the findings of Seismic survey CMPDI will take updrilling of boreholes for generation of data.

16.4 Commercial development of Coal Mine Methane (CMM)

Commercial development of CMM is a priority area both at the Govt. and Coal Industrylevel. MoC has made CMPDI the Nodal Agency for development of CMM in India. Successfulimplementation of the Demonstration Project at Moonidih mine of BCCL Jharia Coalfield hasalready proved the efficacy of the process in Indian Geo-mining condition and fivesuitable areas within CIL mining leasehold areas were identified. To expand the scope ofdevelopment of CBM in CIL areas further studies for "Assessment of CMM Potentialityin CIL Command Area" has been undertaken. Presently detailed exercise has beeninitiated for recovery of CMM in ECL command area for which an area of 57 Sq. Km has beendelineated.

Ministry of Coal vide Office Memorandum dated 29th July 2015 has permittedCIL for exploration and exploitation of CMM from its coal mining lease hold areas.MoP&NG vide notification dated 3rd November 2015 has issued mechanism ofoperationalization/grant of PML in Coal mining leasehold areas of CIL. However someissues pertaining to grant of lease still needs clarification for which the matter hasbeen taken up by CIL at appropriate level.

16.4.1 S&T Project on "Capacity Building for Extraction of CMM Resource withinCIL Command Areas"

S&T project on "Capacity Building for Extraction of CMM Resource withinCIL Command Areas being jointly implemented by CMPDI and CSIRO has been approved underCoal S&T project of MoC. The project is of 3 years duration with effect from 23rdMarch 2016.

16.5 Project on VAM

A project proposal on mitigation/utilization of Ventilation Air Methane (VAM) to betaken up at Moonidih (Jharia coalfield) is under finalization with CSIRO Australia andCMPDI as the implementing agencies and BCCL as sub implementing agency. The project hasbeen approved in principle by CILR & D Board and will be taken up after competentapproval of the Government.

16.6 CMM/CBM Clearing house in India

A CMM/CBM clearinghouse established at CMPDI under the aegis of Ministry of Coal andUS Environmental Protection Agency (USEPA) is functioning as the nodal agency forcollection and sharing of information on CMM/ CBM related data of the country and help inthe commercial development of CMM Projects in India by public/private participationtechnological collaboration and bringing financial investment opportunities. The websiteof India Clearinghouse http://www.cmmclearinghouse.cmpdi. encompasses all theimportant information viz. EOI notifications newsletters in addition to informationregarding opportunities existing for development of CMM VAM etc.

Under GMI initiative a Pre-feasibility study on pre-mine methane drainage feasibilityfor (a) Sawang UG mine East Bokaro Coalfield in 2014 and (b) Chinakuri UG mine RaniganjCoalfield in 2016 has been undertaken by the USEPA Consultant under the Coalbed MethaneOutreach Program (CMOP) and during the visit of USEPA officials on 9thFebruary 2016 the Pre-feasibility study on CMM drainage at Chinakuri Mine (ECL) wasdeliberated along with mine officials. Mr. Craig L Hall Consul General US ConsulateKolkata also visited India CMM/CBM Clearinghouse on 26th February’2016 andappreciated the accomplishments.

17 SAARC Workshop Program "Experience Sharing on CBM UCG & CoalExtraction Methodology

SAARC Training Workshop on "Experience sharing on CBM UCG and Coal ExtractionMethodology" was organized at Delhi during 26th– 27thNovember 2015. It was organized in collaboration with SAARC Energy Centre Islamabad andCMPDI where representatives from six member countries of SAARC participated in theprogram. It was highly appreciated by the participating countries.


MoC has constituted Inter Ministerial Committee (IMC) for identification of areasfor UCG on the lines similar to the existing policy of CBM development. Two meetings ofIMC were held under the Chairmanship of Special Secretary (Coal). In the 2ndIMC meeting potential blocks in coal and lignite were identified for the commercialdevelopment of UCG.


CMPDI has substantially improved the capacity of drilling during XI & XII planperiod. 39 new Mechanical drills & 12 Hi-Tech Hydrostatic drills have been procuredsince 2008-09 out of which 12 have been deployed as additional drills and 39 asreplacement drills. In addition to this supply orders for 7 Hi-tech Hydrostatic drillshave been placed in 2015-16 which will be received in 2016-17.

19.1 Drilling Performance in 2015-16

CMPDI deployed its departmental resources for detailed exploration of CIL/Non-CILblocks whereas State Govts. of MP and Odisha carried out exploration in CIL blocks only.Besides eight other contractual agencies have also been engaged for detaileddrilling/exploration in CIL/Non-CIL blocks. A total of 140 to 160 drills were deployed in2015-16 out of which 62 were departmental drills.

As against the achievement of 2.09 lakh metre in 2007-08 CMPDI has achieved 8.28 lakhmeter in 2014-15 and 9.94 lakh meter in 2015-16 through departmental resources andoutsourcing registering a growth of 20% over previous year.

Apart from it CMPDI continued the technical supervision of Promotional Explorationwork undertaken by MECL in coal sector on behalf of MoC. A total of 1.12 lakh meter ofpromotional drilling has been carried out in Coal (0.52 lakh meter) & Lignite (0.60lakh meter) during 2015-16.

In 2015-16 CMPDI and its contractual agencies took up exploratory drilling in 113blocks/mines of 22 coalfields situated in 6 States. Out of 113 blocks/mines 35 wereNon-CIL/Captive blocks and 78 CIL blocks/mines. Departmental drills of CMPDI took upexploratory drilling in 50 blocks/ mines whereas contractual agencies drilled in 63blocks/ mines.

Due to non-availability of forest clearance work was stopped in 49 blocks. Due to lackof forest clearance and adverse law & order about 4.85 lakh meter of drilling couldnot be carried out in departmental and outsourced blocks in 2015-16.

19.2 Geological Reports

In 2015-16 17 Geological Reports were prepared on the basis of detailedexploration conducted in previous years. In addition 5 IGRs/Geological Notes were alsoprepared. The prepared Geological Reports have brought about 6.1 billion tonnes ofadditional coal resources under ‘Proved’ category.

Under Promotional Exploration Programme GSI and MECL have submitted 3 GeologicalReports on coal blocks estimating about 1.03 billion tonnes of coal resources in‘Indicated’ & ‘Inferred’ categories above the specifiedthickness.

19.3 Hydrogeology

Hydro geological studies of a number of mining projects/ mines were taken up forpreparation of ‘Groundwater Clearance Application’ for CGWA approval and EMPclearance. Hydro geological studies for 29 mining projects/ mines/cluster of mines inBCCL CCL WCL SECL and MCL were completed during 2015-16.

CMPDI is carrying out groundwater monitoring of MOEF cleared projects viz. 77 nos. ofmines of WCL area and 15 nos. Cluster of mines in BCCL area. Water level monitoring inother areas of ECL CCL SECL NCL and MCL are also in progress.

Hydrogeological studies in 10 projects of WCL SECL and MCL have been carried out forwater supply arrangement to mines colony and villages. Assessment of impact of coalmining on groundwater system in coalfields of CIL using CGWB and CMPDI data have also beenconsidered.

19.4 Geophysical survey

Geophysical Logging: Boreholes drilled for exploratory drilling were geophysicallylogged to get the in-situ information of different strata encountered in the boreholes.

During the year 2015-16 a total of 1 75503 depth metre of geophysical logging hasbeen carried out in CIL and Non-CIL projects with multi-parametric geophysical loggingequipment. Out of this 81035 depth metre of logging was done by five departmentalgeophysical logging units and 94468 metre of logging was carried out by contractualagencies.

Surface Geophysical Surveys: CMPDI has also undertaken Electrical Resistivity& Magnetic Survey in CIL and Non-CIL blocks for delineation of In-crop of coal seamsdelineation of dykes and ground water investigation. A total of 329 line km of Resistivityprofiling 238 Vertical Electrical

Sounding (VES) and 7565 stations of Magnetic survey have been carried out in 2015-16.With the 48-Channel signal enhancement Seismograph a total of 57.8 line kms of HighResolution Shallow Seismic (HRSS) survey has been carried out in part of Mohanpursouth& adjoining blocks Raniganj coalfield; Patratu ABC blocks South KaranpuraCoalfield; Chandrabila block Talcher Coalfield and part of Makri-Barka (E) blockSingrauli Coalfield.


During the year 2015-16 18 consultancy jobs were done by CMPDI for 13organizations outside CIL. Some of the major clients/organizations are Tata Steel MOILLtd. NMDC Punjab State Power Corporation Ltd. etc.

Presently 19 outside consultancy jobs are being executed by CMPDI for 15 organisationslike SAIL MOIL Tata Steel IDCO NTPC Odisha Coal and Power Ltd. Gujarat StateElectricity Corporation Ltd. MP Power Generating Co. Ltd. UCIL NMDC etc.

During the year 2015-16 33 outside consultancy jobs worth

` 39.37 crores from 28 organizations were procured by CMPDI. This is the highest evervalue of jobs obtained in a year by CMPDI.


21.1 R&D Projects under S&T Grant of Ministry of Coal

The R&D activity in Coal sector is administered through an apex body namelyStanding Scientific Research Committee (SSRC) with Secretary (Coal) as its Chairman. Theother members of this apex body include Chairman CIL CMDs of CMPDI SCCL and NLCDirectors of concerned CSIR laboratories representatives of Department of S&TPlanning Commission and educational institutions amongst others.

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

CMPDI acts as the Nodal Agency for co-ordination of research activities in the coalsector which involves identification of 'Thrust Areas' for research activitiesidentification of agencies which can take up the research work in the identified fieldsprocessing the proposals for Government approval preparation of budget estimatesdisbursement of fund monitoring the progress of implementation of the projects etc.

Total no. of S&T projects taken up (till 390
Total no. of S&T projects completed 314
(till 31.3.2016)

21.2 Physical performance

The status of Coal S&T projects during 2015-16is as under:

i) Projects on-going as on 1.4.2015 12
ii) Projects approved during 2015-16 07
iii) Projects completed during 2015-16 01
iv) Projects on-going as on 01.4.2016 18

Following new S&T projects were approved during 2015-16:

1. Constructing structures on backfilled opencast coal mines : An attempt to suggestviable methodologies - ISM Dhanbad & CMPDI Ranchi

2. Optimization of various parameters of lab scale Coal Winnowing System (Phase-II) -CIMFR Nagpur and CMPDI Ranchi

3. Techno-economic Evaluation and performance behaviour of Self Advancing (mobile) GoafEdge Supports (SAGES) (Phase–II) - ISM Dhanbad &JBEPL Hyderabad

4. On-line coal dust suppression system for opencast mines - C-DAC Thiruvananthapuram& CMPDI Ranchi

5. Possible implications of bioavailable iron in coal mine dust on coal workers’lung disease - National Institute of Miner’s Health (NIMH) Nagpur; PriyadarshiniInstitute of Engineering & Technology (PIET) Nagpur; Central India Institute ofMedical Science (CIIMS) Nagpur & WCL Nagpur

6. Investigation pertaining to geotechnical & hydrogeological aspects to stabilizethe non-cohesive granular soil/sand in the opencast mines adjacent to the major perennialriver - CMPDI Nagpur; IIT Mumbai and WCL Nagpur

7. Capacity building for extraction of CMM resource within CIL command areas - CMPDIRanchi & Commonwealth Scientific and Industrial Research Organization (CSIRO)Australia

Following Coal S&T project was completed during 2015-16:

Modelling of airborne dust in opencast mines - National Institute of TechnologyKarnataka Surathkal.

21.3 Financial Status

Budget provisions vis--vis actual fund disbursement during the period are givenbelow:

(Rs in Crores)
2014 -15 2015 -16
RE Actual BE Actual
17.95 16.16 18.0 17.59

21.4 CIL R&D Projects

For in-house R&D work of CIL R&D Board headed by Chairman CIL is alsofunctioning. CMPDI acts as the Nodal Agency for processing the proposals for CIL approvalpreparation of budget estimates disbursement of fund monitoring the progress ofimplementation of the projects etc. So far 73 projects have been taken up underthe funds of CIL R&D Board out of which 58 projects have been completed till March2016.

The status of CIL R&D Board Projects during 2015-16 is as follows:

(i) Projects on-going as on 1.4.2015 15
(ii) Projects approved in principle by CIL 03*
R&D Board during 2015-16
(iii) Projects completed during 2015-16 05
(iv) Projects on-going as on 1.4.2016 10

*Note: 3 (Three) Projects were approved in principle subject to certain conditionsimposed by CIL R&D Board. Revised proposals for these projects were not submitted till31.03.2016 for examination and approval and hence not considered as on-going projects ason 1.4.2016.

Following three new R&D projects were approved in principle by CIL R&D Boardduring 2015-16:

1. Development of guideline for prevention & mitigation of explosion hazard by riskassessment and determination of explosibility of Indian coal incorporating risk based mineemergency evacuation and re-entry protocol - ISM Dhanbad; CIMFR Dhanbad; CIL andSIMTARS Australia

2. Development of a methodology for regional air quality monitoring in coalfield areausing satellite data and ground observations - CMPDI Ranchi and NRSC Hyderabad

3. Abatement and utilization of ventilation air methane from a working undergrounddegree-III coal mine in India - CMPDI Ranchi and Commonwealth Scientific and IndustrialResearch Organization (CSIRO) Australia

Following R&D projects were completed during 2015-16:

1. Construction of quick setting stopping in case of fire in underground mines usingexpansion foam agent.

2. Green House Gas Recovery from Coal Mines and Coal Beds for Conversion to Energy(GHG2E)

3. Development of Rubber Compound and Repair Techniques for Trailing Cables ofUnderground Mining Machines

4. Development of Dynamic GIS enabled Forward Cost Modelling (FCM) of land reclamationcontrol and monitoring of acid mine drainage problems in the context of continuation andexpansion of the coal mining in Assam – an ICT based Environment Management Approach.

5. Design Develop and Demonstrate a Micro-Grid system for optimization and control ofMultiple source of power


CIL and its subsidiaries are striving for introduction and betterment of IT solutionsto increase transparency and optimal utilization of resources for the satisfaction of itsstakeholders. The following key initiatives have been undertaken:

1. GPS based Operator Independent Truck Dispatch (OITDS) with high speed Data and Voicecommunications is implemented in all eleven opencast projects to optimize HEMM to enhanceproduction and productivity of the mine.

2. An ambitious plan to commission GPS/GPRS based Vehicle Tracking System across allmajor mines of Coal India was taken up and till date more than 8000 such installation isoperational in various subsidiaries of CIL.

3. In order to improve coal dispatch actions have been taken to connect allweighbridges with Central Server of respective subsidiaries.

4. Electronic Surveillance through CCTV at Weighbridges has been taken up and more than800 such installation at various subsidiaries are in operation.

5. Digitization of Old documents at CIL HQ was undertaken and successfully completedunder the Project DDMA (Document Digitization and Archival Management) to create aknowledge base. More than 80 Lakhs of document have been digitized and with introductionof Electronic file movement CIL HQ is likely to become paperless and make itscontribution for Greener India.

6. E-auction of coal e-procurement of goods and services are operational throughservice provider of CIL e-payment to employees and vendors e-filing of grievances is inoperation to embark upon the business process through IT initiatives.

7. Corporate Mail Messaging System is in place and provision for corporate Email id toall Coal India Officers including its subsidiaries has been made.

8. The subsidiaries have Coal Net and other Information systems in place foraccounting finance payroll material management Sales& Marketing and other businessfunctions.

9. Biometric Attendance at New Office of CIL Hqs as well as in a few mines andsubsidiaries has been introduced to regulate efficient attendance monitoring.

10. Performance evaluation Vigilance Information and annual Property Return of allexecutives is recorded through web enabled systems.

11. The Web Portal of Coal India has been established in English and Hindi withenhanced look and feel encompassing the features like Employee Portal Tender publicationOn-line grievances management Investor centre Customer corner Vigilance etc. The portalalso facilitates for receiving on-line applications FMTs link to E-procurement andE-auction.

12. Coal India has taken initiative for implementation of ERP at Pilot subsidiaries.Study of existing business process and preparation of detailed project report is underprogress.


23.1: Statutory Frame-work for safety in coal mines:

Coal mining world over is highly regulated industry due to presence of many inherentoperational and occupational hazards and associated risks. Coal Mine Safety Legislation inIndia is one of the most comprehensive and pervasive statutory framework for ensuringoccupational health and safety (OHS). Compliance of these safety statutes is mandatory.

In India the operations in coalmines are regulated by the Mines Act 1952 Mine Rules–1955 Coal Mine Regulation-1957 and several other statutes framed thereunder.Directorate-General of Mines Safety (DGMS) under the Union Ministry of Labour&Employment (MOL&E) is entrusted to administer these statutes.

23.2: Safety Policy of CIL:

Safety is always given prime importance in the operations of CIL as embodied in themission statement of CIL. CIL has formulated a well-defined Safety Policy for ensuringsafety in the mines and implementation of the same is closely monitored at several levels.

1) Operation and system will be planned and designed to eliminate or materially reducemining hazards.

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

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

4) Provide material and monetary resources needed for the smooth and efficientexecution of Safety Plans;

5) Deploy safety personnel wholly for accident prevention work;

6) Organize appropriate forums with employees’ representatives for jointconsultations on safety matters and secure their motivation and commitment in SafetyManagement;

7) Prepare annual Safety Plan and long term Safety Plan at the beginning of everycalendar year unit-wise and for the company to ensure improved safety in operations asper prevailing geo-mining conditions to prepare the units for onset of monsoon to fulfillimplementation of decisions taken by the Committee on Safety in Mines and SafetyConferences and to take measures for overcoming accident proneness as may be reflectedthrough study of accident analysis keeping priority in sensitive areas of roof-fallshaulage explosives machinery etc.

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

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

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

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

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

To implement CIL Safety Policy the following are provided:

1. Provision of adequate funds for safety.

2. Deployment of adequate numbers of trained manpower for ensuring safety in miningoperations.

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

4. Continuous and sustained improvement in technological inputs for mining operation.

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

6. Ensuring workers’ participation in every forum for monitoring safety status inmines.

23.3: Accident Statistics

Accidents statistics is the relative indicator for safety status in mines. Over theyears the safety performance of CIL in terms of accident has improved significantly.

This improvement in safety is attributed to the following factors: This improvement insafety is attributed to the following factors:

Salient features of continuous and sustained improvement in CIL’s safetyperformance is disclosed in Annexure 18.

23.4: Actions taken for further improvement in Safety in Mines undertaken in 2015

1. Adoption of Mass Production Technology in more number of UG mines.

2. Deployment of more number of surface miners to eliminate blasting operation in OCPs.

3. Deployment of relatively higher capacity HEMM in more number of OCPs.

4. Mechanisation of UG drilling.

5. Phasing out manual loading in UG mines.

t Steps taken for better Strata Management: Thrust on prevention of roof &side fall accidents.

1. Design of strata support and reinforcement systems.

2. Roof bolting adopted as an integral part of support system in UG mines.

3. Switching over to use of resin capsules from cement capsules in a phased manner.

4. Monitoring of strata by strata monitoring devices.

5. Detailed site-specific geological and geo-technical characterization of immediatestrata is being done using standard strata classification system of Rock Mass Rating(RMR).

1. Expedite construction of sectionalisation stoppings.

2. Conducting Pressure-Quantity (P-Q) Survey for checking efficacy of ventilationstandards at regular intervals.

3. Use of more number of Gas Chromatographs for accurate mine air sampling.

4. Use of Local Methane Detector (LMD) for early detection of methane.

5. Installation of Environmental Tele-Monitoring System (ETMS) in degree III &fiery UG mines for real time assessment of UG mine eco-system.

1. Advanced special Training is being imparted by SIMTARS accredited Trainers forpreparation of risk assessment based Safety Management Plan (SMP).

2. All employees are given training as per Mine Vocational Training Rules- 1966(MVTR-1966).

3. All front-line supervisors are being provided updation training.

4. Training to Dumper operators is being imparted on Simulators. Company-wise status isdisclosed under

Annexure 18.

• Mine Safety Inspection: The following important inspections are being madein each mine to ensure that all mining operations are carried out in the mine as per theprovisions of the relevant statute and safety norms:-

1. Round the clock supervision of all mining operations by adequate number of competent& statutory supervisors and officers.

2. Periodic mine inspections by Head Quarter and Area level senior officials.

3. Surprise back shift mine inspections by Mine and Area level officials.

4. Regular Inspection by Workmen Inspectors appointed in each mine.

5. Monthly mine inspection and meeting of Safety Committee for each mine.

6. Regular mine inspection by officials of Internal Safety Organization.

7. Periodic mine inspection by High Powered Task Force Area and Subsidiary levelTri-partite Safety Committee members etc.

1. Formulation of Mine-specific Traffic Rule.

2. Code of Practices for HEMM operators Maintenance staff & others.

3. Preparation and implementation of Risk Assessment based Safety Management Plan(SMP).

4. Training of Contractor’s Workers involved in contractual jobs.

5. Introduction of Safe Operating Procedures (SOP) for safe mining operations.

6. Procurement of advanced surveying / slope monitoring devices.

1. Special Safety Drives are being conducted periodically to assess thelevel of compliance of safety norms in each mine.

2. Annual safety fortnight/ week is also conducted once in every year fordissemination of knowledge relating to safety among a broad spectrum of mine employees.

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

o Safety talks at the beginning of the shift.

o Safety slogans and signages at conspicuous places.

o Circulation of code of safe operating practices to all concerned employees for everymining & allied operation.

o Display of Animation films on safety issues.

1. Emergency Action Plans of each mine is being reviewed from time to time

2. Mock Rehearsals are being adopted for examining the preparedness / efficacy ofEmergency Action Plan.

3. Demarcating Escape Routes: An exercise for demarcating Escape Routes in undergroundmines on plans as well as belowground by fluorescent paint display of the same at theentry to the mine has been done.

4. A Check list for dealing with emergency has been prepared.

5. CIL has prepared a Flow Chart for sending information regarding crisis / disaster inmines from site of accident to the Ministry of Coal New Delhi. This is prepared in linewith guidelines of Crisis Management Plan of Ministry of Coal so that quick communicationcan be sent to all concerned and rescue & recovery & corrective actions are beinginitiated at the earliest.

24. Rescue Services for Emergency Response System in CIL:

• CIL is maintaining a well establishment rescue organization comprising of 6 MineRescue Stations 14 Rescue Rooms- with-Refresher Training facilities (RRRT) and 17 RescueRooms.

• All Rescue Stations / Rescue Rooms are fully equipped with adequate numbers ofrescue apparatus as per the Mine Rescue Rules (MRR) - 1985.

• This rescue organization is staffed by adequate number of Rescue TrainedPersonnel (RTP)s as per MRR-1985.

• All RTPs are being periodically retrained to conduct rescue operations in hothumid and irrespirable atmospheres in modern training galleries as well as in the mines.

• Permanent Brigade Members and RTPs who are on call 24x7 for rescue &recovery operation.

The Mine Rescue Station and Rescue Rooms are established at strategic locationsspreading across different subsidiaries to cater to the emergencies in their command Area.The details are disclosed under Annexure 18.

25. SafetyMonitoring Agencies in CIL:

The implementation and monitoring of Safety norms stipulated as per Statute are beingdone on constant basis both by the line management as well as by ISO officials. Apart fromthe 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
At Subsidiary HQ Level • Bipartite/Tripartite safety Committee Meeting
• Area Safety Officers’ Coordination Meeting
• Inspections by ISO Officials
At CIL (HQ) • CILSafetyBoard.
/ Corporate Level • CMD’s meet.
• Director (Tech)’s Co-ordination Meeting.
• National Dust Prevention Committee Meeting.
At Ministerial / National Level • Standing Committee on Safety in Coal Mines.
• National Conference on Safety in mines.
• Various Parliamentary Standing committees.


Coal India Limited has made optimum utilization of the resources and technology bothexisting and new and also used advanced methods and technology for the enhancement ofefficiency and productivity in the company. HRD has been developing new techniques andcreating opportunities for employee’s self-development which in turn proved to befavouring the company as a whole.

26.1 Overall Performance

In CIL and its subsidiaries 166659 employees have been trained during 2015-16. Out ofwhich 19968 were Executives and 146691 Non-Executives. These trainings include in- housetraining (training at subsidiary training centers VTCs and also at IICM) training inother reputed institutes outside the company and training abroad.

26.2 Trainings

i) In-house Training

The In-house trainings were organized at subsidiary HQs 27 Training Centres and also102 VT Centres across Coal India and also at IICM. Respective HRD Divisions organizedthese trainings after assessing the training need in the respective category of employeeswithin the subsidiary.

Special attention was given for improving the skill of the employees keeping in mindthe need of Industry. Details of in-house Training imparted during 2015-16 are listedbelow:-

Training Training Workshop/ Seminar Total
Executive 6659 6883 1963 15505
Non-executive 131984 9521 4354 145859
Total 138643 16404 6317 161364

ii) Training Outside Company (Within the Country)

Besides in-house training at our Training Institutes VT centers and IICM employeeswere trained within the country at reputed training institutes in their respective fieldof operations and also for supplementing our in-house training efforts. Employees fromeight subsidiary companies and from CIL (HQ) have been trained in those reputedinstitutes.

The break-up is given below:-

Training Training Workshop/ Seminar Total
Executive 1232 2389 765 4386
Non-executive 683 82 67 832
Total 1915 2471 832 5218

iii) Training Abroad

Coal India has sent 77 employees to different countries from all the subsidiarycompanies and CIL (HQ) during the year 2015-16.

Training W/Shop/Seminar/ Conference Total
Executive 54 23 77
Non-executive 0 0 0
Total 54 23 77

iv) Initiatives

• CIL has been recuring fresh and dynamic young bloods in different disciplinesfor the last few years. A special attention has been given in grooming these young andenergetic persons in their respective fields throughout the year. In addition to theintroductory concept on Coal Industry they have been trained on basic ManagementTechniques (MAP) and also in their respective Technical fields (TAP) through regularcourses organized by IICM with the reputed faculties. Special attention has also beengiven in tuning them in their respective specialized working areas by on-the-job trainingthroughout the year.

• As MTs of Excavation and E &M discipline are posted in different Coal Minesin order to provide them proper exposure to Mining Operations as well as Mining Equipment(both surface and underground) and to make them conversant with the Mining activities 5weeks intensive training for 40 AMs/MTs was organized at Indian School of Mines Dhanbadthe premier Mining Institute of our country during the year 2015-16.

• 30 General Manangers (E8) of different discipline were trained through IIMCalcutta on Advance Management for three weeks including Overseas learning in FrankfurtSchool of Finance and Management St. Gallen Switzerland and Essec Paris France.

• 27 Executive (E4 & E5) of Coal India Limited were trained on ExecutiveDevelopment Program for two weeks in Indian Institute of Management Lucknow.

• 109 MTs of CD discipline were trained on Coal program at IICA Manesar Gurgaon.

• 48 executive of CP discipline were trained on Coal Preparation Plant andPractices at ISM Dhanbad.

26.3 Recruitment

During FY 2015 - 2016 Coal India recruited 281 medical executives comprising ofMedical Specialists and Medical Officers through open advertisement 128 medical officersjoined during the financial year. The rest of the medical officers would join in 2016-17.CIL also inducted fresh talent into the organization at entry level 448 ManagementTrainees in different disciplines selected through campuses.

These Management Trainees have undergone induction training at IICM and then assignedto different subsidiary companies based on our manpower requirements.

During the financial year CIL continued with the campus recruitment of ManagementTrainees in various disciplines for 610 vacancies selected 420 candidates until March2016 selection process is underway to fill up the remaining vacancies. The selectedcandidates from campuses would be offered appointment to join the company in July-August2016 on passing their final course.

Further CIL has also inducted 44 non-executive level employees into Executive cadrethrough departmental selection/promotion process.

27. Manpower

27.1 The total manpower of the Company including its subsidiaries as on 31.03.2016 is322404 against 333097 as on 31.03.2015. Subsidiary company wise position of manpoweris disclosed as Annexure 19.

27.2 The Presidential directives for Scheduled Caste/Scheduled Tribes/OBC have beenimplemented in all the subsidiaries/units of Coal India Limited.

The representation of SC/ST employees in the total manpower of CIL and its SubsidiaryCompanies as on 01.01.2014 01.01.2015 and 01.01.2016 is given below:-

As on Total Manpower Scheduled Caste Scheduled Tribe
Nos. Percentage Nos. Percentage
1.1.2014 350188 72957 20.83 42049 12.01
1.1.2015 336675 72856 21.64 42219 12.54
1.1.2016 326032 70502 21.62 39669 12.17


The Industrial Relations scenario in CIL & its subsidiaries during the financialyear remained cordial. JCCs and different Bipartite Committees at Unit/Area levels andSubsidiary (HQ) levels continued to function normally. Meetings of StandardisationCommittee were held at regular intervals at CIL.

Strikes and Bandhs

During 2015-16 a one day Nation-wide General Strike was called by eleven Central TradeUnions on 2nd September 2015 due to which company lost 131568 mandays and302685 tonnes of production. There were no bandhs during 2015-16.

Subsidiary-wise details of strikes man-days lost and production lost and otherincidents for the year 2014-15 and 2015-16 are furnished in Annexure 19.



At the time of Nationalisation there were only 1 18366 houses including sub-standardhouses. The availability of these houses has increased to 3 98350 (upto 31.03.2016). Thepercentage of housing satisfaction has now reached 100%.


As against 2.27 Lakhs population having access to potable water at the time ofNationalisation in 1973 presently a populace of 19 73887 Lakhs (upto 31.03.2016) hasbeen covered under water supply scheme.


Coal India Limited and its subsidiaries are extending medical facilities to itsemployees and their families through various medical establishments from Dispensary levelto Central and Apex Hospitals in different parts of coalfields.

There are 80 Hospitals with 5431 Beds 399 Dispensaries 557 Ambulance and 1220Doctors including Specialists in CIL and its subsidiaries to provide medical services tothe employees. Besides 5 Ayurvedic Dispensaries are also being run in the Subsidiaries ofCoal India Limited to provide indigenous system of treatment to workers.

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

Moreover medical facilities are being provided to the peoples residing in and aroundmines premises of the subsidiary companies of CIL.


The subsidiary companies of CIL have been providing deficit grant and infrastructurefacilities to certain renowned schools like 44 DAV Public Schools 14 Kendriya Vidyalaya1 Delhi Public School to impart quality education.

In addition to above grant - in –aid is provided to Privately Managedschool in ECL BCCL & CCL to encourage education in the operational areas ofsubsidiaries.

Coal India Scholarship Scheme (Revised – 2013)

In order to encourage Sons and Daughters of the employees of Coal India Limited twotypes of Scholarship namely Merit and General Scholarship are being provided every yearunder the prescribed terms and conditions.

In total 8596 scholarships were awarded and tuition fees & hostel charges werereimbursed to 847 students. The details of Scholarship and Reimbursement of tuition feesand Hostel charges for studying in Government Engg. & Medical Colleges IITs &NITs as well as the details of Grant sanctioned for Schools including privately managedschool are disclosed under Annexure 20.

5) Statutory Welfare Measures:-

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

6) Non-statutory Welfare Measures:-Co-operative Stores and Credit Societies:

In order to supply essential commodities and Consumer goods at a cheaper rate in theCollieries 16 Central Co-operatives and 99 Primary Co-operative Stores are functioning inthe Coalfield areas of CIL. In addition 158 Cooperative Credit Societies are alsofunctioning in the Coal Companies.

7) Banking Facilities:-

The Management of Coal Companies are providing infrastructure facilities to variousNationalised Banks for opening their Branches and Extension Counters in the Coalfields forthe benefit of their workers. Workers are educated to draw their salaries through 480Bank/ Extension Counters and they are also encouraged to practice thrift for the benefitof their families.

8) Sports:-

Structured sports policy of CIL and its subsidiaries was approved by CIL Board its 296thMeeting held on 25th March 2013. As per sports policy Coal India SportsPromotion Association (CISPA) has been registered under West Bengal Societies RegistrationAct 1961.

CISPA has undertaken following sports activities at National Level and InternationalLevel:-

a. Sports Academy and Sports University at Ranchi:-

An MoU has been signed on 17th June 2015 between the Govt. of Jharkhand andCentral Coalfields Limited for establishing fifteen Sports Academies and Sports Universityat the existing World class stadium/infrastructure in Hotwar Ranchi where National Games2011 was organized.

b. CIL Football Academy at Sanctoria Eastern Coalfields Limited West Bengal :-

The Academy will cater entire Eastern region of Country for development of potentialFootball players at the early age. The academy will provide State of Art facilities to thebudding players for their development to the national / International level.

c. Coal India -SAI National Table Tennis Academy at Kolkata:-

Table Tennis Academy will be established in collaboration with Sport Authority of Indiaat Kolkata. The academy will be a standard residential Table Tennis Academy with allmodern training facilities.

To generate corporate goodwill of company CISPA sponsored following sports events ofthe country:-

i. Title Sponsorship of Hockey India League 2016 held from 18th Jan. 2016 to21st Jan.2016. Matches were played at six venues - Ranchi BhubaneswarChandigarh Lucknow Delhi and Mumbai.

ii. Coal India was the Title sponsor of the 'National Senior Ranking BadmintonTournament 2015' held at Bangalore from 14th April’ 2015 to 18thApril’ 2015.

iii. Sponsorship of World Hockey League Tournament held at Raipur Chhattisgarh from 26thNov. to 5th Dec.2015.

iv. Sponsorship of World Bridge Team Championship 2015. The tournament held at Chennaifrom 26th Sep. to 10th Oct. 2015.

v. Sponsorship of National Open Athletic Championship 2015 held at SAI ComplexKolkata from 16th to 19th Sep.2015.

9) Welfare Development and Empowerment of Women

In Coal India Limited there is a Forum for Women in Public Sector Cell at CompanyHeadquarter- 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 theForum with the help of a duly appointed Executive Committee. The company extends activesupport to the various activities of WIPS comprising of welfare activities training &development activities seminars cultural programmes industrial awareness visits healthawareness programme etc. for WIPS members women workers their families and society atlarge.

Coal India Ltd and its subsidiary companies are extending full support and patronage toNational Conference of Forum of WIPS held every year in the month of February atpredetermined locations by sponsorship of the event nomination of maximum number ofdelegates and also by competing for the BEST ENTERPRISE Award. In the recent years WIPScell have done commendable work in reaching out to grass root level women employeesempowering them by suggesting gainful redeployment training and uplifting their morale byrecognizing outstanding achievement recognizing and honouring the exceptional talent.

10) Special Cash Award:-

During 2014-15 an amount of Rs 100000/- has been provided as Special Cash Award to18 meritorious Sons and Daughters of employees of CIL(Hqrs.) Kolkata Desk Offices ofsubsidiary companies @`7000/- for 05 (Five) students who have secured 90% or above marksin the Class-XII Board level examination and @`5000/- for 13(Thirteen) students who havesecured 90% or above marks in the Class-X Board level examination.

11) Recreational facilities:-

At present there are eight Holiday homes in the following places.

(a) Puri (b) Digha (c) Goa (d) Manali (e) Katra (f) Ajmer (g) Darjeeling (h) Haridwar

Efforts are on to include more holiday home in the other important tourist spots in thecountry.

12) CIL Welfare Board Meeting:-

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

The members of CIL welfare Board comprising of Central Trade Union representatives andrepresentatives of Management meet regularly to discuss on the welfare measures and reviewthe implementation of different welfare scheme. The meeting of the Welfare board is beingconducted regularly.


Green belt is developed through extensive tree plantation programme every year by thesubsidiaries of Coal India Ltd. Avenue plantation plantation on the OB dumps plantationaround mines residential colonies and available land is undertaken in the existing aswell as the new projects. The subsidiaries of CIL have planted around 92.35 million treescovering an area over 36896.26 Ha till March 2016 which includes 1.68 million over 719 2015-16.


Keeping with the spirit of the constitution of India Coal India Limited continued itsefforts to propagate and spread the progressive use of Official Language Hindi during theperiod under review. The management of Coal India Limited is committed to implement theprovisions of the Official Languages Act Rules and Regulations. For this purposeperiodical meetings and reviews are done regularly by the top officials. Works carried outduring the year under review towards implementation of Rajbhasha is appended below:- Hindiworkshops were organized regularly with a view to create working atmosphere of Rajbhashaand to remove hesitation of officers & employees to work in Hindi. During the yearlarge number of employees participated in such workshops which refresh their knowledge ofHindi words Hindi noting& drafting in their regular Official works.

With a view to create conducive atmosphere for working in Hindi and accelerating theuse of Hindi as Official Language among officials ‘Hindi Fortnight’ wasobserved in all offices of Coal India Ltd. starting from 14 September’2015. Duringthe Hindi Fortnight various Hindi Competitions such as Hindi noting and drafting HindiSelf writing Hindi Dictation Hindi Translation Hindi typing and Lectures were organizedwhere a large numbers of employees participated enthusiastically. The winners werehonoured with Cash Awards & Certificates. This create a consciousness among employeesto use Rajbhasha in official Work. It is notable that Regional Sales Offices situated atdifferent cities were granted sufficient fund as per their sizes to celebrate Hindi Diwas& Hindi week/fortnight as per their practice.

In order to promote Hindi as Official Language a grand Hasya Kavi Sammelan wasorganized on 24-11-2015 at the auditorium of New Office Building situated at New townwhere a large number of audience were present.

With the aim to promote Official language and to foster interest in Official Languageamong officers and employees first time Hindi Magazine namely "Koyala Darpan"has been published from Coal India headquarters. Its first issue was released by ShriKeshrinath Tripathi Honourable Governor of West Bengal on 29.8.2015.The purpose ofpublishing the magazine is to provide a platform of the Creative potential of employeesand to inform all about the activities of Coal India.

With a view to promote Hindi knowledge of the employees 10 sets of 9 selected Hindimagazines are being distributed among different departments/sections. Help literature anddictionaries were provided to the departments on their demand. "Today’s Word'and 'Today's Thought' are displayed on all the signage at the New Office ComplexRajarhat.

Different organizations of Govt. of India recognize the best performers by awardingprizes. During the year Coal India Ltd. was awarded the following Prizes:-

CIL bags 1st Prize of TOLIC (PSUs) Kolkata: Under the Rajbhasha AwardScheme of Govt. of India Honourable Governor of West Bengal Shri Kesharinath Tripathiawarded TOLIC (PSUs) Kolkata shield - 1st Prize to Coal India Ltd. in theCorporate Offices category for the best implementation of Official Language Policy of theUnion on 29.8.2015.

On 1st May 2015 Coal India Ltd. was awarded with ‘Karyalaya DeepSamman’ by Rajbhasha Sanshthan Delhi at Solan Himachal Pradesh for the bestimplementation of Official Language Policy of the Union.

General Manager Rajbhasha Shri Bhagwan Pandey is honoured with ‘RajbhashaImplementation Ratna Sammanon 16 September 2015 at the National Museum Auditorium duringthe Twelfth Hindi Day Ceremony 2015 held at New Delhi.

Coal India also received ‘Karyalaya Smriti Chinha Samman’ by RajbhashaSanshthan Delhi at Jim Corbett Park Nainital on 16-10-2015 for the best implementationof Official Language Policy of the Union.

Inspection of offices is a part of the implementation. Officials of Rajbhashadepartment CIL (HQ.) reviewed the status of implementation of the Official Language insome of its subordinate offices during the year under review. Suggestions have been givento correct the short-comings seen during the inspection. Some Participants were alsonominated in Hindi Workshop/Training camps organized by certain prestigious institutionsto promote Hindi.


The anti-corruption activities in CIL and its subsidiary companies have beeninstitutionalized by setting up Vigilance Departments in CIL and subsidiary companies eachof which is headed by a Chief Vigilance Officer (CVO) appointed by the Govt. of India inconsultation with Central Vigilance Commission (CVC) on tenure basis drawn from variousgovernment services.

During the year 2015-16 115 Intensive Examination of Works/ Contracts (Major works)were undertaken by CIL (HQ) and its subsidiary companies. In addition 244 Surprise checkswere carried out. Besides 66 Departmental Inquiries were disposed of which resulted inpunitive action against 310 officials. Such examinations/investigations have resulted ininitiation of various system improvement measures.

As per the directives of Central Vigilance Commission Vigilance Awareness Week –2015 has been observed in Coal India Limited IICM- Ranchi and North EasternCoalfields-Margherita & Regional Sales Offices across the country w.e.f. 26.10.2015 TO31.10.2015 emphasizing the theme of "Preventive Vigilance as a tool of GoodGovernance". As part of the function following major activities were organised: (i)The pledge was taken during the Board Meeting as well as different Departments.

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

(iii) For the employees of CIL Speech Competition Quiz Competition Essay writingcompetition on "Youth can change the corruption scenario of society" was held on28.10.15 (11 AM - 12.30 PM) feedback from employee on transparency and governance inorganizational activities were sought and suggestions for System improvement taken.

(iv) A one day orientation program for Junior Level Managers was organized in twobatches.

(v) All Departments and offices under CIL organised a Group discussion on‘‘ICT implementation in CIL & Subsidiaries need of the hour for effectivePreventive Vigilance" on 27.10.15 at CIL HQ".

(vi) Stake Holders meet was organized and their suggestion for measures to promote goodgovernance and enhance the level of transparency in commercial activities of theorganization were taken. Feedback related to transparency fairness and customersatisfaction were obtained.

(vii) A Seminar on "Preventive Vigilance as a tool of Good Governance" washeld on 03.11.15 at CIL auditorium. Chief Guest Sri Pradeep Kumar Ex. CVC CVC and Guestof Honour as Sri R Srikumar Ex. VC CVC and Sri K S Ramasubban Ex Sect. CVC & ShriGDGautama Ex-State Information Commissioner Chairman CIL CVO CIL and Directors of CILand executives attended the function.

Preventive Vigilance/ System Improvement i) Improvements in Online Grievance ManagementSystem:

CIL was listed in online PG Portal. Grievance redressal committee has been formed bothat CIL and subsidiary Hq. The grievances received in hard copy is scanned and put in thesystem. The action taken by the Department is reviewed by the committee. Unresolvedgrievances are placed to the meeting of Functional directors.

ii) Online Bill Tracking System Implementation at CIL

Bill tracking system has been implemented in coal net system. The status of the billcan be seen by the vendors. Senior officers can monitor delay in processing the bills. Thefirst in and first out principle can be monitored.

iii) Implementation of E-procurement Reverse Auction

E-procurement has been made compulsory for all tenders above Rs 2 lakhs. ReverseAuction has been taken up for tenders above Rs 1 cr at CIL and subsidiary Hq level. Thebusiness process Reverse Auction has been standardized.

iv) System improvement suggestions:

System improvement suggestions were made in many areas: a. Implementation ofE-procurement & reverse auction b. DPC for promotion c. Procurement of explosives d.Use of 3D TLS for survey of OB & Coal with phasing out of Theodolite.

e. Purchase Manual

v) System Improvement Studies - Studies were taken in following areas

Sl. Subject of Study
1 Measurement of OB and Coal in outsourced patches
2 Recording of performance of tyres through maintenance Logbook as per international practices.
3 CSR Policy of CIL and monitoring of projects.
4 Inventory of Land Records
5 Losses due to excessive production of coal in mines having dispatch constraints.
6 RDA initiated on CBI Reports
7 E-surveillance through VTS CCTV Weigh-Bridge connectivity RFID & other IT initiatives.
8 Promotion & Transfer Policy of CIL.
9 Investment of Surplus Fund.
10 Procurement of SDL & LDH machineries and their spare parts.
11 Policy issues in procurement e-procurement & reverse auction.
12 Standardization of NITs.
13 Recruitment process in CIL & subsidiaries.
14 Standardization of Codes in procurement items.
15 Fixation of normative coal consumption for various non- code sectors as per new coal gradation policy based on GCV system.


No employee received remuneration either equal to or in excess of the limitsprescribed under Rule 5(2) of Companies (Appointment and Remuneration of ManagerialPersonnel) Rules 2014 during 2015-16. Details of Rule 5(1) of Companies (Appointment andRemuneration of Managerial Personnel) Rules 2014 on disclosure in the Board Report withreference to remuneration of managerial personnel is annexed to the Report. (Annexure21).


Shri S. Bhattacharya continued as Chairman cum Managing Director throughout the year.Shri R. Mohan Das Director (P&IR) Shri N. Kumar Director (Technical) and Shri C.K.Dey Director (Finance) were on the Board throughout the year. Shri S N Prasad has assumedthe charge of Director (Marketing) from 01.02.2016 on superannuation of Shri B K Saxenafrom 31.01.2016.

Dr A K Dubey Special Secretary MoC and Smt Sujata Prasad Joint Secretary &Financial Advisor MoC continued as part-time official Director on the Board throughoutthe year.

Ms. Loretta M Vas Dr S. B. Agnihotri Shri Vinod Jain Dr D. C. Panigrahi andDr. Khanindra Pathak were appointed as Independent Directors on the Board of the companyw.e.f 17th November 2015 and continued during the year.

Shri R. R. Mishra CMD WCL has been appointed as Permanent Invitee w.e.f. 6thNovember 2015. Shri S Saran CMD CMPDIL has been appointed as permanent invitee on CILBoard w.e.f 1st January’2016 on superannuation of Shri A K. Debnath witheffect from 1st January 2016. Shri A. N. Sahay CMD MCL was on the Board till31stOctober’ 2015. Shri Kundan Sinha Addl. Member (Traffic transportation) has beenappointed as permanent invitee on CIL board from 6th April’ 2015 andcontinued till 31st January 2016.

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

In terms of Article 39(J) of the Articles of Association of the Company one third ofretiring Directors are liable to retire by rotation shall retire at the ensuing AnnualGeneral Meeting and they are eligible for reappointment.

The Board of Directors held 12 meetings during the year 2015-16.

35. Composition of Audit Committee

CIL in pursuance of excellence in corporate governance formed an Audit Committee of itsBoard of Directors w.e.f. 20-07-2001 and the present Audit Committee was reconstituted bythe Board in its 323rd Meeting held on 6th Jan’ 2016 consistedof four Independent Directors one Functional Director one Government Nominee Directorand one permanent invitee. Details are disclosed in Corporate Governance Report underpoint number 3.1.

36. Composition of CSR Committee

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

37. Declaration given by independent directors under subsection (6) of Section 149.

The following independent directors have given their consent during 2015-16 that theymeet the criteria of independence as stipulated in sub-section (6) of Section 149 of theCompanies Act 2013.

i. Ms. Loretta M Vas

ii. Dr. S.B.Agnihotri

iii. Dr. D.C.Panigarhi

iv. Dr. Khanindra Pathak

v. Shri Vinod Jain

38. Reappointment of Independent Directors- Section 149(10)

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

39. Recommendation of Audit Committee by the Board.

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

40. Company‘s policy on directors ‘appointment and remuneration includingcriteria for determining qualifications positive attributes independence of a directorand other mattersprovided under sub-section (3) of section 178.

MCA vide Notification dated 5th June’2015 has exempted the above forGovernment companies.

41. Remuneration policy of directors KMPs and Senior Management – Section 178(4).

MCA vide Notification dated 5th June’2015 has exempted the above fordirectors of Government companies.

42. A statement indicating the manner in which formal annual evaluation has been madeby the Board of its own performance and that of its committees and individual directors.

MCA vide Notification dated 5th June’2015 has exempted the above forGovernment companies.

43. Contracts or Arrangements with Related Parties

Related party transactions made with the subsidiary companies and that all suchtransactions were exempted under Regulation 23(5)(a) and (b) of Securities and ExchangeBoard of India (Listing Obligations and Disclosure Requirements) Regulations 2015 beingtransactions between two government companies and transactions entered between a holdingand its wholly owned subsidiaries whose accounts are consolidated with such holdingcompany and placed before the shareholders at the general meeting for approval. Howeverthe remuneration paid to Key Managerial Personnel is being disclosed separately in pointno VI of Annexure 22.

44. Loan guarantees or investments by a company under section 186 of the Act

Loan guarantees and investments made by Coal India Limited in terms of section 186 isenclosed as Annexure 23.

45. Familiarization programme of Board Members.

Board of Directors are fully briefed on all business related matters associated risknew initiatives etc. of the company. The Board of directors were also briefed about theprovisions of Companies Act 2013 (Prohibition of Insider Trading) Regulations 2015 andSEBI (Listing Obligations and Disclosure Requirement) Regulations 2015. As per Regulation25 of SEBI (Listing Obligations and Disclosure Requirement) Regulations 2015 the listedentity shall familiarize the independent directors through various programmes about thelisted entity including the following:

(a) Nature of the industry in which the listed entity operates;

(b) Business model of the listed entity;

(c) Roles rights responsibilities of independent directors; and

(d) Any other relevant information.

As per regulation 46 of SEBI (Listing Obligations and Disclosure Requirement)Regulations 2015 the details of the familiarization programmes is to be disclosed on thewebsite of the company.In addition Independent Directors were nominated to attend thetrainings programmes organized by SCOPE and DPE. The same is disclosed on company’swebsite

46. Sexual Harassment of Women at the Workplace

The company has in Place an Anti-Sexual Harassment Policy in line with the requirementsof The Sexual Harassment of Women at the Workplace (Prevention Prohibition &Redressal) Act 2013. Internal Complaints Committee (ICC) is working at every subsidiaryand office of Coal India Limited to redress complaints regarding sexual harassment. Allwomen employees (permanent contractual temporary trainees) are covered under thispolicy.

No sexual harassment complaint was received during the year.


In terms of Section 134(3)(c) of the Companies Act 2013 read with the SignificantAccounting Policies at Note-33 and Additional Notes on Accounts at Note-34 forming partof:

1. CIL (Standalone) Accounts

2. CIL (Consolidated) Accounts

Based on such confirmation obtained from eight Indian subsidiaries of CIL viz: EasternCoalfields Limited Bharat Coking Coal Limited Central Coalfields Limited NorthernCoalfields Limited Western Coalfields Limited Mahanadi Coalfields Limited(consolidated) South Eastern Coalfields Limited (consolidated) and Central Mine Planning& Design Institute Limitedhowever for the overseas subsidiary viz. Coal IndiaAfricana Limitada which was incorporated under Mozambique Commercial Code and for JointVentures viz. International Coal Ventures Private Limited and NTPC Urja Private Limitedwhere CIL is not the majority shareholder such confirmation have not been obtained.

It is confirmed that:

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

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

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

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

e) Internal Financial Controls have been laid down and such controls areadequate and were operating effectively during the year ended 31stMarch’2016.

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


The statement containing the salient features of the financial statements of acompany’s subsidiaries associate companies and joint ventures under the firstproviso to sub-section(3) of section 129 of Companies Act2013 is enclosed as AOC 1 in Annexure24. In terms of General Circular No.2/2011 dated 8th Feb 2011 from Ministryof Corporate Affairs the Annual Accounts of subsidiary companies shall be made availableto the shareholders seeking such information.


The Cost Audit of your company for the year 2014-15 was conducted by M/s Musib& Co and the Cost Audit Report was approved by the Board of directors in their 319thmeeting held on 12th August 2015. The Cost Audit Report did not contain anyadverse observation/comment or qualification from the Cost Auditor. The above report wasfiled in XBRL mode with MCA on 28/09/2015.


In pursuance to Section 204 of Companies Act 2013 company had conducted SecretarialAudit for the year 2015-16 by a practicing Company Secretary M/s Vinod Kothari & CoPractising Company Secretaries. Their appointment was approved by the Board. The report ofSecretarial Auditor is included in the Corporate Governance Report. The observations ofSecretarial Auditor and Management Explanation are enclosed as Annexure 25.


A Risk Management Charter has been approved by the CIL Board. It is being implementedin CIL HQ and its Subsidiaries. Risk Management Policy and its Mitigation Measures areunder preparation.


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

1. Corporate Social Responsibility Policy: DocumentList/documents/CIL_CSR_Policy_New_Companies_Act_2013_05022016.pdf

2. Vigil Mechanism: vigilance.aspx

3. Policy for determining Material Subsidiary: D o c u m e n t L i s t / d o c u m e n t s /P O L I C Y _ F O R _ D E T E R M I N I N G _ M A T E R I A L _ SUBSIDIARIES_21032015.pdf

4. Related Party Transaction Policy: d o c u m e n t s / R e l a t e d _ P a r t y _T r a n s a c t i o n _ Policy'_01122014(1).PDF


1. None of the Directors are disqualified from appointment as per Section 164 of theCompanies Act’2013.

2. Company has not issued any Equity shares with differential voting rights SweatEquity shares and ESOP.

3. Since shares of CIL were issued in IPO in October’2010 and unclaimed dividendamount is less than seven years no amount has been transferred to IEPF.

4. No Secretarial Statutory Auditor resigned during the year 2015-16

5. No relative of director was appointed to place of profit.

6. As per Regulation 32(4) of SEBI (Listing Obligations and Disclosure Requirement)Regulations 2015 deviation of Proceeds of Public issue is not applicable to the company.

7. There is no deposit covered under Chapter V of Companies Act 2013.

8. There is no deposit which is not under compliance of Chapter V of Companies Act2013.

9. There is no change in the nature of business.

10. No Director is in receipt of any commission from the subsidiary companies in whichhe is a director.


1. Details in respect of frauds reported by Auditors under section 143(12) other thanthose which are reportable to the Central Government. : No such reported frauds as perAudit Report of Standalone Accounts.

In case of consolidated accounts the following has been reported by Statutory Auditorunder ‘Matter of Emphasis’: "Note 34(7) (c) in financial statements in oneof the subsidiary company alleged fraudulent payments of Rs 0.81 Crores were detectedagainst fake bills of two parties and some more fake unpaid bills of these partiesand also of another party have also been detected. The matter is under investigation bythe vigilance department and FIR has been filed with the police. Any adjustment inFinancial Statements will be made on completion of the investigation. Further there isover payment of Rs 1.85 Crores in Kargali Washery and Bokaro Project due to wrong fixationof basic pay on conversion of Piece Rated workers to Time Rated payments. A committeeformed in this regard has submitted their report. Pending decision no adjustment has beenmade in the accounts".

2. Material changes and commitments if any affecting the financial position of thecompany which have occurred between the end of the FY and the date of the report : TheCompetition Commission of India (CCI) on the basis of complaints by few coal customersagainst conducts of Coal India Limited Western Coalfields Limited South EasternCoalfields Limited and Mahanadi Coalfields Limited heard the case and vide its orderdated 09.12.2013 had interalia imposed a penalty of Rs 1773.05 Crores against whichappeal was filed in the Competition Appellate Tribunal which directed to deposit Rs 50Crores.

Subsequently vide Order dated 17.05.2016 i.e. after the end of the financial yearthe Tribunal has set aside the order of CCI and directed to hear the case afresh and as aresult the penalty of Rs 1773.05 Crores stands cancelled and therefore the contingentliability existing on 31.03.2016 was withdrawn.

3. The names of companies which have become or ceased to be its subsidiaries jointventures or associate companies during the year.

During the Financial Year 2015-16 a Joint Venture Rashtriya Coal Gas FertilizersLimited was formed. The details of the subsidiaries Joint Ventures or associates havebeen furnished in form AOC-1.During the financial year no subsidiaries Joint Ventures orassociates have ceased to be subsidiaries/Joint Ventures or associates


The Board of Directors of your Company wishes to record their deep sense ofappreciation for the sincere efforts put in by the employees of the Company and TradeUnions. Your Directors also gratefully acknowledges the co-operation support and guidanceextended to the Company by various Ministries of the Government of India in general andMinistry of Coal in particular besides the State Governments. Your Directors alsoacknowledge with thanks the assistance and guidance rendered by the Auditors theComptroller and Auditor General of India and Registrar of Companies West BengalSecretarial Auditor and Cost Auditor and wishes to place on record their sincere thanks toConsumers for their continued patronage.


The following are annexed.

i) Pre-tax Profit of CIL & subsidiaries for 2015-16 vis--vis 2014-15 (Annexure1).

ii) Subsidiary wise details of Dividend income of CIL Standalone (Annexure 2).

iii) The comments of the Comptroller and Auditor General of India on StandaloneFinancial Statements of Coal India Limited (Annexure 3).

iv) Auditors Report on the Standalone Financial Statements for the year ended 31stMarch 2016 including Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

[Annexure 3(A)].

v) The comments of the Comptroller and Auditor General of India on ConsolidatedFinancial Statements of Coal India Limited (Annexure 4).

vi) Auditors Report on the Consolidated Financial Statements for the year ended 31stMarch 2016 including Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

[Annexure 4(A)].

vii) Observations of Auditor on Standalone Financial Statements and ManagementExplanation. (Annexure 5).

viii) Observations of Auditors on Consolidated Financial Statements and ManagementExplanation [Annexure 5(A)].

ix) Subsidiary wise Coal Off-take. (Annexure 6) x) Sector-wise dispatch of coal& coal products. (Annexure 7)

xi) Dispatches of coal and coal products by various modes. (Annexure 8)

xii) Wagon Loading in 2015-16. (Annexure 9)

xiii) Subsidiary wise details of Stock of Coal. (Annexure 10)

xiv) Subsidiary wise details of Trade Receivables. (Annexure 11)

xv) Subsidiary-wise payment of Royalty Cess Sales Tax Stowing Excise Duty CentralExcise Duty Clean Energy Cess Entry Tax and Others. (Annexure 12)

xvi) Subsidiary-wise production Production from underground and opencast mines. (Annexure13)

xvii) Subsidiary-wise Washed Coal (Coking) Production. (Annexure 13A)

xviii) Subsidiary wise Overburden Removal. (Annexure 13B).

xix) Population of equipment.(Annexure 14)

xx) Subsidiary wise System Capacity Utilization. (Annexure 15).

xxi) Project Implementation. (Annexure 16).

xxii) Subsidiary wise details of Capital Expenditure. (Annexure 17)

xxiii) Salient features of continuous and sustained improvement in CIL’s safetyperformance. (Annexure 18)

xxiv) Subsidiary wise position of manpower and strikes and bandhs. (Annexure 19)

xxv) Scholarship and Reimbursement of tuition fees and Hostel Charge and Grantssanctions to schools. (Annexure 20)

xxvi) Disclosures under Rule 5(1) of Companies (Appointment and Remuneration ofManagerial Personnel) Rules 2014. (Annexure 21).

xxvii) The extract of the annual return as provided under subsection (3) of Section 92in Form No. MGT.9 (Annexure 22).

xxviii) Loan and Advances Guarantees Investments made by the company under Section186(4) of the Companies Act’2013

(Annexure 23).

xxix) Statement pursuant to first proviso to sub-section (3) of section 129 read withrule 5 of Companies (Accounts) Rules 2014) as at 31st March 2016. (Annexure24).

xxx) Secretarial Audit Report under Section 204 of Companies Act 2013 and Observationof Secretarial Auditor & Management Explanation (Annexure 25).

xxxi) Foreign Exchange Earning and Outgo under Rule 8 of Companies (Accounts) Rules2014 (Annexure 26).

xxxii) Details about Research and Development of the Company (Annexure 27).

xxxiii) Disclosure as per Section 135 of Companies Act 2013 on Corporate SocialResponsibility (Annexure 28).

xxxiv) Significant and Material Orders passed by the Regulators or Courts.(Annexure29).

xxxv) Corporate Governance Report.(Annexure 30)

For and on behalf of the Board of Directors

S. Bhattacharya
9th August 2016


Pre-tax Profit of CIL & subsidiaries for 2015-16 vis--vis 2014-15

(Rs in crore)
Company 2015-16 2014-15 Increase/
ECL 1300.04 1782.41 (482.37)
BCCL 783.76 1154.22 (370.46)
CCL 3118.74 2740.34 378.40
NCL 4065.51 3713.47 352.04
WCL 431.46 544.79 (113.33)
SECL (consolidated) 5173.32 5659.46 (486.14)
MCL (consolidated) 6260.41 5314.24 946.17
CMPDIL 42.54 39.33 3.21
CIL (Standalone) 16513.53 13651.89 2861.64
Sub-Total 37689.31 34600.15 3089.16
Less: Dividend from Subsidiaries 16140.09 13011.72 3128.37
Total 21549.22 21588.43 (39.21)
Adjustment for exchange rate variation on Current Account of overseas (12.60) (4.51) (8.09)
Share in loss of Joint Venture (0.03) - (0.03)
Adjustment for Provision on Advance to CIAL 52.50 - 52.50
Overall Profit as per Consolidation of Accounts 21589.09 21583.92 5.17


Subsidiary wise details of Dividend income of CIL Standalone

Rs in crore
Company (paying subsidiaries)

Dividend Income of CIL Standalone

2015-16 2014-15
CCL 1711.74 530.05
NCL 3659.92 4563.99
WCL 769.66 134.29
SECL 6390.32 3941.57
MCL 3608.45 3841.82
Total 16140.09 13011.72