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Coal India Ltd.

BSE: 533278 Sector: Metals & Mining
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OPEN 265.10
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VOLUME 136100
52-Week high 316.55
52-Week low 256.00
P/E 16.66
Mkt Cap.(Rs cr) 163,627
Buy Price 0.00
Buy Qty 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 the43rd Annual Report of Coal India Limited (CIL) and Audited Accounts for the year ended31st March 2017 together with the reports of Statutory Auditors and Comptroller andAuditor General 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 310016 (as on 1st April 2017). CIL operates through 82 mining areas spreadover eight provincial states of India. Coal India Limited has 394 mines (as on 1st April2017) of which 193 are underground 177 opencast and 24 mixed mines. CIL further operates15 coal washeries (12 coking coal and 3 non-coking coal) and also manages otherestablishments like workshops hospitals and so on. CIL has 27 training Institutes.Indian Institute of Coal Management (IICM) is an excellent training centre operates underCIL and imparts multidisciplinary management development programmes to the executives.Coal India's major consumers are Power and Steel sectors. Others include cementfertilizer 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 having four (4)Subsidiaries and one(1) Joint Venture SECL has two(2) Subsidiaries and CCL has one (1)subsidiary.

A) Subsidiaries of MCL

1. MJSJ Coal Ltd.

MJSJ Coal Ltd was incorporated on 13th August 2008 as a Joint Venture Company of MCL.MJSJ Coal Ltd has been formed for Gopalprasad OCP where MCL is having 60% shares JSWSteel Limited and JSW Energy Limited having 11% share each and Shyam Metalics and EnergyLtd (formerly known as Shyam DRI Power Limited) and Jindal Stainless Limited having 9%shares each. The paid up Share Capital of MJSJ Coal Ltd as on 31st Mar'2017 was Rs 95.10Crore. The Hon'ble Supreme Court of India in its judgement dated 25th Aug'14 and orderdated 24th Sep'14 declared allocation of Utkal-A coal block allocated to MJSJ Coal Ltd. asillegal and has quashed the allocation.

2. MNH Shakti Ltd.

MNH Shakti Ltd was incorporated on 16th July 2008 as a Joint Venture Company of MCL.MNH Shakti Ltd has been formed for Talabaria OCP where MCL is having 70% share NeyveliLignite Corporation Ltd having 15% share and Hindalco Industries Ltd. having 15% share.The Paid up Share Capital of MNH Shakti Ltd as on 31st Mar'2017 was Rs 85.10 Crore. TheHon'ble Supreme Court of India in its judgement dated 25th Aug'14 and order dated 24thSep'14 declared allocation of Talabira – II and Talabira – III coal blocksallocated to MNH Shakti Ltd. as illegal and has quashed the allocation.

3. Mahanadi Basin Power Limited.

Another Company "Mahanadi Basin Power Limited"(MBPL) was incorporated on 2ndDecember 2011 and certificate for commencement of business issued by ROC on 6thFeb'2012. MBPL has been formed as an SPV with 100% shares held by Mahanadi Coalfields Ltdfor power generation of 2x800 MW through Pit Head Power plant at Basundhara Coalfields. Itis a wholly owned subsidiary of Mahanadi Coalfields Ltd (MCL) having its Registered Officeat Bhubaneswar. The Paid-up Share Capital of Mahanadi Basin Power Limited as on 31stMar'17 was Rs 5 lakh.

4. Mahanadi Coal Railway Limited

Pursuant to MoU signed between IDCO MCL and IRCON on 20th May 2015 a Joint ventureCompany namely Mahanadi Coal Railway Limited was formed on 31st August 2015 with aequity participation in the ratio of 64:26:10 between MCL IRCON and IDCO to buildconstruct operate and maintain identified rail corridor projects including doublingthird line traffic facility projects important for coal connectivity that are criticalfor evacuation of coal from mines in the state of Odisha. The Share Capital of MahanadiCoal Railway Limited as on 31st Mar'17 was Rs 5 Lakh.

Neelanchal Power Transmission Company Private Limited –A joint venture of MCL

MCL has ventured into Power Transmission Business in the State of Odisha for betterutilisation of surplus funds along with development of infrastructure in the State ofOdisha. Accordingly on 8th January 2013 another joint Venture Company namely NeelanchalPower Transmission Company Private Limited (NPTCPL) was incorporated in partnership withOdisha Power Transmission Company Ltd (OPTCL) having 50:50 equity participation by virtueof a Joint Venture Agreement.

(B) Subsidiaries of SECL

1. M/s Chhattisgarh East Railway Ltd(CERL)

CERL is a joint venture Company among South Eastern Coalfields Limited M/s IRCONInternational Limited and Chhattisgarh State Industrial Development Corporationincorporated on 12th Mar'13 for construction of railway lines for evacuation of coal with64% shareholding of SECL. During the year 2016-17 the Paid up Capital of the companyincreased from Rs 139.05 Crores to Rs 166.95 Crores and debt from Rs 150 Crores to Rs 300crores.

2. M/s Chhattisgarh East- West Railway Ltd(CEWRL)

CEWRL is a joint venture Company among South Eastern Coalfields Limited M/s IRCONInternational Limited and Chhattisgarh State Industrial Development Corporationincorporated on 25th Mar'13 for construction of railway lines for evacuation of coal with64% shareholding of SECL. During the year 2016-17 the Paid up Capital of the companyincreased from Rs 4.05 Crores to Rs 500 Crores and debt at Rs 75 Crores

(C) Subsidiary of CCL

Jharkhand Central Railway Limited is a Joint Venture Company among 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. During the year2016-17 the Authorised Capital of the company increased from Rs 5 Crores to Rs 100Crores.

The Project Implementation Agreement between JCRL and IRCON International Limited asproject management & implementing agency was finalized. The Detailed Project Reporthas been deliberated in the JCRL Board meetings. IRCON has been directed for submission ofmodified DPR with various options considering the technical requirements and financialviability of the project. The investment decision shall be taken by JCRL Board aftersubmission of final DPR by M/s IRCON with various options.


1) Company & its subsidiaries produced 554.14 MT. of coal with a growth of 2.85%compared to the last year same period.

2) Company achieved an off-take of 543.32 MT. with a growth of 1.7% compared to thelast year same period.

3) CIL has acheived a gross sales of Rs 122294.46 crores a landmark achievement.

4) Not a single power-utility was in critical or super-critical condition for want ofcoal during 2016-17

5) Due to the improved despatch and better quality of coal import of coal to India hadreduced during 2016-17.


1. Sri S. Bhattacharya Chairman Coal India Limited was conferred with ‘Best CEO-PSU' Award in the Sixth edition of the prestigious ‘Forbes India Leadership Awards– 2016' in a function held on 8 November in Mumbai.

2. Sri S. Bhattacharya Chairman Coal India Limited was conferred with ‘g-filesGovernance Award 2016' the award was presented on 26th November 2016 in New Delhi byShri Chaudhary Birender Singh Hon'ble Union Minister for Steel Government of India andShri Ram Bilas Sharma Hon'ble Minister Education and Tourism Government of Haryana inan event.

3. CIL w as conferred with the following awards: a. Coal & Coal Products by Dun& Bradstreet in 2017.

b. Best Implementation of Corporate Social Responsibility by ABP News in 2017.

c. Most Efficient & Fast Growing Maharatna by Dalal Street Investment Journal Awardin Best Maharatna Category by Hindustan PSU Awards in 2016.

d. Best CFO Award by Financial Express


2.1 Financial Results (CIL Consolidated)

CIL is one of the largest profit making and tax & dividend paying enterprises inIndia. CIL and its subsidiaries have achieved an aggregate Pre-Tax Profit of Rs 14433.71crores for the year 2016-17 against a pre-tax profit of Rs 21439.80 crores for the year2015-16. CIL as a group had achieved a post tax profit of

` 9265.98 crores in 2016-17 compared to Rs 14266.78 crores in 2015-16. Totalcomprehensive income of Rs 9347.98 crores in 2016-17 as compared to Rs 14561.19 crores in2015-16 (excluding share of non-controlling interest of Rs 0.25 crore previous year: Rs0.04 crore). The subsidiary wise details of Pre-tax Profit of CIL are given in Annexure1.

Highlights of performance

The highlights of performance of Coal India Limited Consolidated for the year 2016-17compared to previous year are shown in the table below:

PARTICULARS 2016-17 2015-16
Production of Coal (in million tonnes) 554.14 538.75*
Off-take of Coal (in million tonnes) 543.32 534.50*
Sales (Gross) (`/Crores) 122294.46 108147.54
Capital Employed (Rs/Crores) Note- 1 58428.87 67608.07
Capital Employed (`/Crores)-excluding capital work in progress and intangible assets under development 48063.28 61634.91
Net Worth (`/Crores) 24506.97 34814.98
Profit Before Tax (` /Crores) 14433.71 21439.80
Profit for the Period(`/Crores) 9265.98 14266.78
Total Comprehensive Income attributable 9347.98 14561.19
to the Owners of the company(`/Crores)
PAT / Capital Employed (in %) 15.86 21.10
Profit before Tax / Net Worth (in %) 58.90 61.58
Profit after Tax / Net Worth (in %) 37.81 40.98
Earning Per Share (`)
(Considering Face Value of Rs 10 per share) 14.78 22.59
Dividend per Share (`)
(Considering Face Value of Rs 10 per share) 19.90 27.40
Coal Stock (Net) (in terms of No. of months Net Sales) 1.18 0.98
Trade Receivables (Net) 1.05 1.27
(in terms of No of Months Gross Sales)

*Production and Offtake of Coal for FY 2016-17 includes 5.324 MT and 4.118MT (FY2015-16 2.28 MT & 2.15 MT) of Gare Palma IV/2&3 Mine for which Coal India Ltd. hasbeen appointed akin to a designated 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 2016-17 a sum of Rs 510.75 crores was transferred to General Reservesout of CIL Consolidated profits and amount of Rs 3650 crores was utilized for buyback ofshares. Above amount of Rs 510.75 crores includes transfer of Rs 8.01 Crores transferredout of CIL Standalone profits.

2.2 Dividend Income and Pay Outs (CIL Standalone)

While the financial statements of both CIL Standalone and Consolidated are presentedseparately only CIL Standalone is listed and relevant for dividend payment to itsshareholders The dividend to its shareholders are paid out of CIL's Standalone income themajor part of which constitutes the dividend income received from its four profit makingsubsidiaries i.e. CCL NCL SECL and MCL. The breakup of such dividend (Interim + Final)received and accounted for during the year from different subsidiaries are given in Annexure2.

During the year CIL Standalone has paid a total dividend (by way of interim dividend)of Rs 12352.76 crores @ Rs 19.90 per share on 6207409177 number of Equity Shares of Rs10/- each fully paid up. Out of above total dividend the share of Govt of India was Rs9736.40 crores and for other shareholders Rs 2616.36 crores. (In 2015-16 - Govt of India- Rs 13784.86 crores and Other shareholders – Rs 3521.98 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 2016-17 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 [Annexure 3(A)and Annexure 4(A)] on the Standalone Financial Statements and Consolidated FinancialStatements respectively of the company for the financial year 2016-17. However they havedrawn attention under ‘Emphasis of Matter' on certain issues. These issues under‘Emphasis of Matter' along with observations of the Auditors elswhere in theannexures 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 543.32 milliontonnes for fiscal ended March 2017 surpassing previous highest figure of 534.50 milliontonnes achieved during the last year i.e. an increase of 1.7 % over the last year. Theoverall raw coal off-take achieved was 90.8 % of the Annual Action Plan Target. In theyear 2016-17 ECL CCL NCL MCL and NEC outperformed their achievement during the lastyear. NCL had exceeded its target for 2016-17.

Company-wise target vis--vis actual off-take for 2016-17 and 2015-16 are shown under Annexure6.

Offtake could have been more but for the following reasons:

Power houses started the year with huge stock of 38.7 Mt and regulated intake andpreferred to consume from stock. Almost 12 Mt stock consumed from the stock by the powerstations during the year. Wagon availability also sporadically affected off-take atdifferent subsidiaries.

ECL: Production and dispatch of coal from Rajmahal OCP was adversely affected due tofatal accident. Less demand of higher grade coal from the Power Houses.

CCL: Intermittent Law & Order problem. Logistics bottleneck at Amrapali-MagadhMines had also come in the way of augmenting off-take.

WCL: TPPs were particularly reluctant to take coal from Cost Plus Sources.

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

MCL: Sporadic incidence of law and order problem & less supply of wagons againsttheir indents affected MCL despatch. Less movement through MGR mode also affected overalldispatch.

Initiatives taken for enhancing off-take:

• 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 up with Power producers in addressing issuesrelating to coal movement.

• Source Rationalization 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 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.

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 andmedium and other sector consumers. CIL organized meeting with State Governments tostreamline the process of nominating distribution agencies by them.

o Coal companies started supplying 100 mm crushed coal to its consumers w.e.fJanuary'2016.

Special E-Auction Schemes

From the year 2015-16 Special Forward E-Auction scheme was introduced by MOC formeeting the coal requirement of Power plants is being continued. During 2015-16 &2016-17 around 13.8 Mill tons & 47 Mill tons coal was booked by consumers under thisscheme of e-auction respectively.

A similar scheme for consumers in the non – power sector was also launched asExclusive E-auction scheme for non-power . During 2015-16 & 2016-17 around 1.5 Milltons & around 6.2 Mill tons coal was booked by non power consumers under thise-auction respectively .

Special Spot e-auction was also conducted once in 2016-17 with the objective forliquidating coal stock especially from the high stock mines and to provide scope forprocuring coal at a competitive price by the consumers of non-specified end use. Around6.2 Mill tons coal was booked in this e-auction.

Web Portal for MSME Sector-

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 10000 tonnes of coal. The portal willmake the system of distribution of coal to such consumers through State NominatedAgencies more 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 amongstakeholders

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

In the year 2016-17 CIL dispatched 542.494 MT of Coal & Coal Products against theAAP target of 598.031 MT i.e. an achievement of 90.7%. CIL has dispatched 7.9 MT of coaland coal products more than last year with a growth of 1.5%.

425.397 MT of coal and coal products including despatches under special forwarde-auction to power was despatched to the power utilities against the target of 450.990 MTi.e. an achievement of 94.3%. This is 12.3 MT more than last year's dispatch of 413.109MT which also includes despatches under special forward e-auction to power resulting ina growth of 3%.

Sector-wise break-up of dispatch of coal & coal products for 2016-17 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 2016-17 went upto 542.494 million tonnesfrom 534.624 million tonnes registering a growth of 1.5%. Overall dispatch by Non-Railmode had been 91.9% of the target. Growth in despatches via Rail mode was 3.9 % whereas inthe overall Non-Rail mode it decreased by 1.4 %. Road despatches decreased by 0.6%compared to the previous year. Movement by MGR also decreased by 3.5% compared to lastyear. Despatches through other modes like belt & rope increased by 5.7 % compared tothe last year.

Dispatch of coal and coal products by various modes for the years 2016-17 and 2015-16is disclosed in Annexure 8.

3.3 Wagon Loading

Overall wagon loading materialization was 90.9 % 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 9.1 rakes per day. Company wise performanceshowed that NCL exceeded its target. All the subsidiaries except BCCL exceeded last year'slevel 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 dispatch.

Wagon loading performance of 2016-17 vis--vis 2015-16 is disclosed in Annexure 9.

3.4 Consumer Satisfaction

i. For enhanced customer satisfaction special emphasis given to Quality Management.Attuned to this objective it was decided that 2017-18 will be declared as ‘QualityYear'.

ii. In order to monitor quality right at the coalface charge of mining have been giventarget to contain grade slippages within 10%.

iii. Another big step to ensure proper quality was independent assessment of grades of871 mines/ loading points/ fractions through various academic institutes of nationalrepute by CCO. Based on the analysis reports received from these institutions CCOfinalized the grades of different mines/sidings for the year 2017-18. Although the resultsof re-gradation of about 49% mines/ loading points/ fractions were not encouragingcorrection would enhance the confidence of consumers.

iv. In order to monitor coal quality internally a portal has been designed by CIL tocapture entire life cycle of sample. With the help of portal analysis of coal quality onregular basis will be possible.

v. CIL has enhanced coal handling plant capacity of about 320 MT per annum so as tomaximize dispatches of crushed/ sized coal to Power sector. CIL is supplying (-) 100mmsized coal to all power plants w. e. f. 01.01.2016 except those at pit head. In additionmobile crushers have been installed to meet the additional crushing requirement.

vi. Emphasis has been given for maximum production through surface miners. For thissurface miners have been deployed for production of coal in mines wherever technically /commercially feasible. About 50% of CIL's production is being mined through surfaceminers. Deployment of this technology at OCP mines is bound to improve coal quality. Atpresent 75 Surface Miners are working in opencast mines.

vii. In addition the Washeries at BCCL CCL WCL and NCL have crushing/ sizingfacilities to the tune of about 36.8 million tonnes. 22 new coal washeries and renovationof 05 existing washeries combined capacity of 123.7 MTPA are in various stages ofplanning/ commissioning.

viii. Measures like picking of shale/stone selective mining by conventional modeadopting proper blasting procedure/ technique for reducing the possibility of admixture ofcoal with over-burden material & improved sizing of coal etc. are being taken. Forthose mines having large inter bands of shale/stone installation of deshaler has beenplanned.

ix. Joint/ Third Party sampling & analysis is in vogue for major consuming sectorse.g. power utilities steel cement and sponge iron. Entire supplies to Power sector arecovered under third party sampling / analysis large consumers having annual quantity of0.4 MT or more and having FSA covered under sampling. For the first time samplingfacility has been extended to consumers of Special e-Auction for power sector and LinkageAuction through IIT-ISM and QCI. Consequent to issuance of Letter of Intent theseagencies have been advised to enter into tripartite agreement with consumers and coalcompanies to start the process.

Officer in x. Area laboratories of subsidiary coal companies have been equipped with121 Bomb Calorimeters for accurate and transparent results of analysis of coal samples. 28labs. across the subsidiary companies have already got NABL accreditation and another 27labs accreditation process is underway. It is expected that standardization of theprocess as per NABL standard will go in a long way to enhance customers' confidence aboutthe process of assessment of coal quality and facilitate quality monitoring.

xi. The guidelines/ SOP issued by MoC vide letter dated 26.11.2015 on third partysampling at loading ends has already been implemented through Central Institute of Miningand Fuel Research (CIMFR). Sampling for almost entire quantity covered under FSA iscontinuing across various loading points of coal companies.

xii. 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.

xiii. 24 Auto Mechanical Samplers (AMS) are also working in subsidiary coal companiesfor coal sampling eliminating chances of biasness in sampling process. Procurement offurther AMSs is under process. The process has already been initiated to deploy AugurSampling for drawing more representative samples. One online analyzer in each subsidiarycompany has been envisaged on trial basis.

xiv. 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 99.42 % during the year 2016-17.

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 had been considered to be supplied through bilaterallegally enforceable Fuel Supply Agreements (FSA) with a trigger level of 90%. The totalquantity covered under FSA against the allocation as on March'17 was about 295 milliontonnes.

(ii) 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 16th April'2012 andrevised directive dated 17-7-2013 a list of Power Plants having an aggregate capacity of78535 MW was notified for signing of FSA. A total 173 TPPs 149 cases having normal LOAand 24 cases having Tapering LOA (as per MOC OM dated 30.06.2015 tapering linkages arenot existent as on date) were listed. Till 31st March'2017out of 149 regular LOAs146FSAs have been signed. The balance FSAs could not be signed for the reasons notattributable to CIL. However out of the above 1 FSA have been transferred to SCCL and 2FSAs became null and void since the plants have been converted from IPP to CPP.

For post-NCDP Plants (Plants commissioned after March 2009) total FSA commitment ofCIL as on date is for an Annual Contracted Quantity (ACQ) of about 216 Million tonnes forthe aggregate capacity of about 56750 MW which is backed by long term Power PurchaseAgreement (PPA) and qualify for commencement of coal supply subject to commissioning etc.

(iii) As on 1st April 2017 679 units other than power and steel plants have operativeFSAs with subsidiaries of CIL for about 48.9 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. 13 Statessent their nomination of 19 State Agencies for the year 2016-17 of which 11 State Agenciesof 10 States have signed FSAs for 2.119 mill. tonnes and drawing coal accordingly.

(v) After implementation of NCDP 417 LOAs were also issued to consumers of spongeiron CPP and cement as per recommendations of various SLC (LT) meetings for a quantity of63.95 Million tonnes per annum. Out of these 337 FSAs have been concluded till date forquantity of about 45.70 Million tonnes per annum. Out of these 157 FSAs are active as ondate with a quantity of 19 Million tonnes per annum.

(vi) CIL conducted the Tranche-I of Auction of Coal Linkages for Sponge Iron CementCPP and ‘Others' sub-sectors under Non-Regulated Sector during the period June toOctober 2016 in accordance with the policy guidelines dated 15.02.2016 issued by Ministryof Coal. The auction has been envisaged as a transparent system of linkage allocationwhich is based on competitive bidding. Various consumer friendly measures such as 3rdparty sampling exit option no performance incentive delivery from specifiedmine/siding back-up mine in the event of Force Majeure etc. have also been introduced. Atotal of 23.75 Mtpa was earmarked for Tranche-I out of which 22.14 Mtpa has been booked.The auction is followed by signing of Fuel Supply Agreements (FSA) for the bookedquantity. The tenure of the FSA is 5 years which can be further extended by another 5years on mutual agreement.

The Tranche-II of auctions was conducted during the period January to June 2017.Auctions for Sponge Iron Cement Others and Steel (coking) Others (coking) and CPPsub-sectors have already been concluded. A total of 14.50 Mtpa of non-coking coal and 0.26Mtpa of coking coal have been booked under Tranche-II.

(vi) Under Special Forward E Auction scheme during the year ended Mar'17 quantityallocated was around 47 mill tonnes as against 13.8 mill tonnes allocated in the lastyear. The premium gained through Special Forward E-auction over & above the notifiedprice was 16% during the year 2016-17. In Exclusive E Auction scheme during 2016-17quantity allocated was around 6.3 mill tonnes as against 1.5 mill tonnes allocated in thelast year. The premium gained through Exclusive E-auction over & above the notifiedprice was around 9% during the year 2016-17. During the period under review around 53.6mill. tonnes of coal was allocated under Spot E- auction to the successful bidders asagainst 57.4 mill. tonnes of coal allocated during the 2015-16. The notional gain throughSpot E-auction over & above the notified price was 25% during the year 2016-17. About6.2 Mill tes coal booked under Special Spot E-Auction during 2016-17 with gain of 20% overnotified price.

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 with capacityof 23.3 and 13.5 MTY respectively. The total washed coal production from these existingwasheries for the year 2016-17 was 17.04 Million Tonnes.

In addition CIL has planned to set up 22 new Washeries and renovate 5 existing cokingcoal washeries with state-of-the-art technologies in the field of coal beneficiation withan aggregate throughput capacity of 123.68 MTY.

Out of the 22 new washeries 13 are planned to wash coking coal with a cumulativecapacity of 41.35 Mty 4 of which are at different stages of construction and LOI has beenissued for one. For remaining 9 new non-coking coal washeries with a total capacity of75.5 MTY LOA/LOIs has been issued for 3.

The major bottlenecks for setting up of these washeries are mainly ForestEnvironmental and other Statutory Clearances in addition to absence of firm commitmentfrom the intended customers regarding acceptance of washed coal at value added prices.

3.7 Stock of Coal

The stock of coal (net of provisions) at the close of the year 2016-17 was Rs 7412.79Crores (earlier year Rs 6162.54 crores) which was equivalent to 1.18 months value of netsales (previous year 0.98 months). The company-wise position of stock held on 31st March2016 & 31st March 2017 are given in

Annexure 10.

3.8 Trade Receivables

Trade Receivables i.e. net coal sales dues outstanding as on

31.03.2017 after providing Rs 3782.82 crores (previous year

` 2220.20 crores) for bad and doubtful debts was Rs 10735.85 crores (previous yearreinstated Rs 11447.61 crores) which is equivalent to 1.05 months gross sales of CIL as awhole (previous year 1.27 months). Subsidiary-wise break-up of trade receivablesoutstanding as on 31st March 2017 as against 31st March 2016 are shown in Annexure 11..

3.9 Payment of Royalty Cess Sales Tax Stowing Excise Duty

Central Excise Duty Clean Energy Cess Entry Tax & Others

During the year 2016-17 CIL and its Subsidiaries paid/adjusted

` 44068.28 crores (previous year Rs 29084.11 crores) towards Royalty Cess Sales Taxand other levies as detailed below:-

Figures in Rs Crores

2016-17 2015-16
Royalty 8745.84 8209.25
Additional Royalty (MMDR Act) - 434.42
DMF 3964.47 -
NMET 221.16 -
Cess on Coal 1706.37 1590.67
State Sales Tax / VAT 2787.91 2444.75
Central Sales Tax 1200.09 1144.79
Stowing Excise Duty 538.00 525.67
Central Excise Duty 2617.39 3647.00
Clean Energy Cess 21062.06 9980.13
Entry Tax 283.82 259.37
Others 941.00 848.06
Total 44068.28 29084.11

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 2016-17 was 554.14 Mill Te against 538.754 Mill Teproduced in 2015-16. Coal production from underground mines in 2016-17 was 31.477 Mill Tecompared to 33.786 Mill Te in 2015-16. Production from opencast mines during 2016-17 was94.32% of total raw coal production. Subsidiary wise production production fromunderground and opencast mines and coking and non-coking coal production are disclosed in Annexure13.

Reasons for less production than the target 2016-17:

Despite best and consistent efforts constraints that have impeded the growth in coalproduction are as under:

(i) Major mishap at Rajmahal OC affected production at ECL.

(ii) Accumulation of high coal stock at many of the OC mines due to less lifting ofcoal by Cost Plus consumers at WCL.

(iii) Delayed Stage-II forest clearance at Dhanpuri OC Amlai OC and Jampali OC andalso restricted working space at Amgaon OC due to intervening forest land affected CoalProduction at SECL

(iv) Scarcity of working space due to delay in handing over of forest land at JagannathOC and Ananta OC delay in Stage II FC at Lajkura OC & R&R issues at Bharatpur OCand Kanhia OC and affected production at MCL.

Washed Coal (Coking) Production

Subsidiary-wise production of Washed Coal (Coking) is given in

Annexure 13A. Overburden Removal

The Company-wise overburden removal is disclosed in

Annexure 13B. 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 year 2017-18 the target of coal production hasbeen pegged at 600.00 Mt with an annualized growth of about 8.3% over the achievement oflast year. In 2018-19 the envisaged coal production projection is 773.70 Mt with a growthof about 28.95 %.

The capital expenditure for the year 2017-18 has been Rs 8500 crores. Further Companyhas planned to invest Rs 6500 crores in various projects viz. Super Critical Thermal PowerPlant (STPP) Solar Power Revival of Fertilizer Plants Coal Gasification Acquisition ofcoal blocks in India & Abroad CBM etc. during 2017-18.

In the light of Paris Protocol and consequent changes in world energy scenario CIL islooking forward to diversify its operations towards Renewable energy like Solar Power andClean Energy sources like CMM CBM CTL UCG etc following the directives of GoI.Following that mission MoC/CIL is in the process of formulating ‘Vision Document2030' to decide future course of operation for sustainable entity in the nation's energysector.


Due to survey-off 5 Draglines at NCL and MCL in 2016-17 population of Dragline reducedto 35 as on 31st Mar'17. There was a reduction of 39 Shovels due to survey off of oldShovels in ECL BCCL CCL NCL WCL & SECL. CIL and its subsidiaries are planning toprocure 87 shovel costing around Rs 1929 crores515 Dumper costing around Rs 3305 crores124 Dozers costing around Rs 314 crores35 Drill costing around Rs 144 crores & 6Draglines costing around Rs 1176 crores in next 2/3 years.

Performance of HEC Dragline at NCL was not satisfactory which affected availability& utilization. Matter has been taken up with M/s HEC for improvement. Dragline ofSonepur Bazari Project ECL was under breakdown since June 16 due to non-supply ofimported spares which is expected to start within next 2 months. Heavy rainfall in NCL& MCL Land and R&R problems in BCCL MCL & SECLwere the major reasons forless HEMM utilization. Efforts are being made to improve the availability &utilization.

The population of Major Opencast Equipment (Heavy Earth Moving Machinery) as on 1stApril 16 & on 1st April 17 along with its performance in terms of availability &utilisation expressed as percentage of CMPDIL norm is disclosed in

Annexure 14.


The overall system capacity utilization for the year 2016-17 was 84.51%.It was99.87% during 2015-16.This was mainly due to low system capacity utilization in ECL BCCLNCL WCL & MCL.

Due to accident in Rajmahal OCP of ECL both coal production & OB removal sufferedin the last quarter of 2016-17.Due to unprecedented rainfall OB removal suffered in BCCL& NCL. In WCLdue to exhaustion of reserves in Ghughus OC the dragline was shiftedfrom Ghughus OC to Mungoli OC and other HEMM to different mines which affected OBremoval. In Talcher coalfields of MCL due to law & order issues there was a negativegrowth in coal production in 2016-17 compared to 2015-16. set at Necessary action hasalready been taken for improvement in capacity utilization in 2017-18 in all theSubsidiaries of Coal India Ltd. Subsidiary wise details of capacity utilization for theyear 2016-17 vis--vis 2015-16 are disclosed in Annexure 15.


7.1 Preparation of Reports:

As prioritized by subsidiary companies of Coal India Limited preparation of ProjectReports (PR) for new/expansion/reorganization mines was carried out during the year2016-17 for building additional coal production capacity to the tune of 57.75 Mty.Revision of Project Reports/Cost Estimates for projects was also taken up along with newPR. During the period 249 reports were prepared including 16 Geological Reports 26Projects Reports 37 Draft EMPs (including 15 Form-I) and 170 Other Reports.

7.2 Project Implementation:

a) Projects Completed During the year 2016-17:

The following 7 coal projects each costing Rs 20 Crores and above with an ultimatecapacity of 24.20 Mty and completion cost of Rs 1190.98 Crores have been completed duringthe year 2016 -17. The subsidiary-wise details of project completed during 2016-17 aredisclosed in Annexure 16.

b) Projects started Production during the Year

4 projects have started coal production during the year 2016-17.The subsidiary-wisedetails are disclosed in Annexure 16.

c) Status of Ongoing Projects:

120 coal projects and 71 non mining projects costing Rs 20 Crores and above are indifferent stages of implementation. Out of 120 coal projects 58 projects are running onschedule and 62 are delayed. Out of 71 non mining projects 27 are delayed.

Status of Ongoing Projects Costing Rs 20 Crores and above

Projects Total Projects on Projects
Projects Schedule Delayed
Mining 120 58 62
Non Mining 71 44 27
Total 191 102 89

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 7 projects are running behind the schedule due to delay ordiscontinuance of work or non-participation in tender by contractor 1 project due to lawand order problem and 3 projects due to lack of Railway Infrastructure facilities for coalevacuation.

Non Mining Projects:

Non mining projects are running behind the schedule due to discontinuance of work bycontractor law and order problem acquisition of land and associated problems ofrehabilitation and forestry clearances.

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

a) Projects sanctioned by CIL Board

8 coal mining projects for an ultimate capacity of 56.25 Mty and a total capitalinvestment of Rs 8931.05 Crores have been sanctioned by CIL Board during the year 2016-17.The subsidiary-wise details of projects sanctioned by CIL Board in 2016-17 is disclosed inAnnexure 16. b) Non Mining Projects Sanctioned by CIL & Subsidiaries Board:

No Non-mining projects have been sanctioned by CIL & Subsidiaries Board during theyear 2016-17.

Sl. No. Project Subsidiary Date of Approval Sanctioned Capital
(` Crores)


-17:c) Projects Sanctioned by Subsidiary Company Boards:

11 coal mining projects for an ultimate capacity of 16.74 Mty and capital investment ofRs 3427.26 Crores have been sanctioned by Subsidiary Coal Companies during the year2016-17. The subsidiary-wise details of projects sanctioned by their Board in 2016-17 aredisclosed in Annexure 16.

7.4 Revised Project/RCE Sanctioned by CIL Board:

a) RCE/RPR/UCE sanctioned by the CIL Board during the year 2016- 17: -

Project Subsidiary Date of Approval Sanctioned Capacity Sanctioned Capital
(Mtpa) (` Crores)
Khottadih OCP ECL 03.05.16 1.5 60.10

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

Project Subsidiary Date of Approval Sanctioned Capacity Sanctioned Capital
(Mtpa) (` Crores)
Sarapali OC SECL 04.09.2016 1.40 143.63
Jaganathpur SECL 25.07.2016 3.00 459.59
Total 4.4 603.22

7.5 Key Strategies:

(i) Critical Railway Links:

In order to achieve the planned growth in production and evacuation in future CIL hasundertaken three major Railway Infrastructure Projects implemented either by Railways orJV Companies formed with IRCON representing Railways Subsidiary Company representing CILand concerned State Government.

The three major Railway Infrastructure Projects are:

1. Tori- Shivpur-Kathotia New BG Line

2. Jharsuguda- Barpali- Sardega Rail Link

3. East Rail Corridor and East- West Rail Corridor

Tori- Shivpur railway line is catering to North Karanpura

Area of CCL. It is planned to evacuate about 32 MTY of coal. Jharsuguda-Barpali-Sardega Rail Link is Catering to the coalfields of MCL. This Rail line shall evacuate 70MTY of coal from the coalfields of MCL. The evacuation of coal of Mand- Raigarh and Korba– Gevra Coalfields of SECL shall be through East Rail Corridor and East- West RailCorridor respectively. In all about 180 MTY of coal shall be evacuated through these twocorridors.

(ii) Acquisition and Possession of land:

In all subsidiaries of Coal India the major portion of land is acquired under the CoalBearing Areas (Acquisition & Development) Act 1957. During 2016-17 notificationunder section 9 (1) has been issued for 3086.69 Ha and notification under section 11 (1)has been issued for 4196.69 Ha.

During 2016-17 3826.19 Ha of land has been taken into possession in varioussubsidiaries of Coal India.

(iii) WEB Based Online Monitoring System:

Web based online monitoring of coal mining projects costing more than Rs 100 Crs hasbeen introduced in Coal India. Exercise for 69 projects costing more than Rs 150 Crs andcapacity 3.0 Mty and above have so far been completed during the year 2016-17.

Additionally monitoring of 67 coal mining projects costing more than Rs 150 Croreswith Project monitoring software MS Project has also been started in Coal India Limitedduring the year 2016-17.Crucial issues are also being uploaded by CIL and its subsidiarycompanies on MOC e-CPMP portal and MOC is vigorously following up with the stategovernments and other associated ministries by holding meetings with concerned officialsto expedite EC & FC approvals.


One Billion Tonne (Bt) production essentially is a synergic effort with coal bearingstates and railways to access the resources and speed up logistics for coal evacuation.

Coal India has decided to put its best foot forward with the help of all concernedagencies and take its production into higher growth trajectory. Contribution fromidentified projects will be 908 Million Tonnes (Mt) and identification of projects for thebalance quantity is in progress.

Group wise Production from Projects

Existing coal projects are envisaged to contribute about 165 Mt projects underimplementation are likely to contribute 561 Mt. Future projects are planned to produce 182Mt during the year 2019-20.

Contribution from Subsidiaries

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

Eastern Coalfields Limited - 62 Mt
Bharat Coking Coal Limited - 53 Mt
Central Coalfields Limited - 133 Mt
Northern Coalfields Limited - 110 Mt
Western Coalfields Limited - 60 Mt

Major Challenges

The dream of providing 1Bt of coal (qualitatively & quantitatively) to the Nationwill be achieved only through the concerted efforts of CIL Railways and StateGovernments. Three critical railway lines mechanization through latest technologyupgrading skills of employees speedy acquisition of land expeditious environmental andforest clearances and fast track state level clearances are crucial for realization of 1Bt coal production by CIL.

K ey Strategies

(I) Technology Development

a. Exploration capacity is planned to be augmented with more use of hydrostatic drillsgeophysical loggers 2D/3D Seismic Survey Technology and Optimization of number of coringboreholes based on the complexity of geology of the block.

b. Introduction of high capacity equipment Operator

Independent Truck Dispatch Systems Vehicle Tracking System using GPS/GPRS CHP andSILOS for faster loading and monitoring using laser scanners have been planned to augmentcoal production from opencast mines.

c. Introduction of Continuous Miner Technology on large scale Long Wall Technology atselected places Man Riding system in major mines and Use of Tele - monitoring techniqueshave been envisaged to increase production from underground mines.

(II) Role of HR

Driving CIL Corporate Vision by building capabilitiescreating performance culture& developing talent pool.

(III) System Improvements

Introduction of e-procurement of equipment and spares e-tender of work and servicesimplementation of Coal Net establishment of connectivity revision of guidelines andmanuals use of GPS for monitoring operational efficiency in road transport of coal havebeen planned to improve the overall system.


Conservation of energy always remains a priority area and CIL/Subsidiaries haveundertaken various measures towards reduction in specific energy consumption.

Even though Coal Production had increased by 2.9% in 2016-17 compared to 2015-16electricity consumption has however reduced to 4886.83 Million Units vis--vis 4971.13Million Units during 2015-16 with a reduction of 1.7% in absolute terms. Specific PowerConsumption (kWh/T) during 2016-17 is 8.82 kWh/T vis--vis 9.23 kWh/T during 2015-16 witha reduction of 4.42%. CIL/Subsidiaries endeavor to maintain this trend of reduction inspecific power consumption (kWh/T) every year with reference to previous year.

Some of the salient measures taken by CIL/Subsidiaries for energy conservation are asunder :-

• CMPDIL HQ has undertaken energy conservation studies in 2016-17 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 Bureau ofEnergy Efficiency (BEE) accredited Energy Auditors.

Diesel Audit and Benchmarking carried out by CMPDIL in 71 opencast mines in differentsubsidiary companies revealed an aggregate saving of approximately 16750 kilo litre/yearin diesel consumption.

These 71 opencast mines are selected having composite capacity (Coal+OB) of 1.0mill.cub.m or more in ECL 2.0 mill.cub.m or more in BCCL WCL CCL and 5.0 mill.cub.m ormore in NCL SECL and MCL respectively.

Likewise Electrical Audit and Benchmarking carried out in 08 mines (07 opencast minesand 01 underground mine) revealed an aggregate saving of approx. 110 million units/year.

• MoU has been signed between CIL (Coal India Limited) and EESL (Energy EfficiencyServices Limited) on 08.02.2016 for implementation of Energy Efficiency Projects in CILand its Subsidiaries.

• Accordingly high watt luminaries / conventional light fittings are beingreplaced with low power consuming LEDs (of appropriate wattage) in majority of the placesfor street lighting Office and other work places townships etc. thereby creating hugesaving potential in electricity consumption. Around 64000 LED Lights have been fitted (new+ replacement) in CIL/Subsidiaries for better conservation of energy.

• Air Conditioners (AC) and Refrigerators of 5 Star Rating are procured againstreplacement of old conventional ACs and refrigerators. Use of Super Energy Efficient AirConditioners (AC) are also being explored at places having technical capability of savingenergy 30% more than the 5 star-rated ACs.

• Energy audit of selected mines / office buildings conducted by CMPDIL / ExternalAgency.

• Installation of power capacitors of appropriate kVAR rating to maintain higherpower factor to avail maximum benefit on power factor incentive from power supply agencyas well as reduction in Maximum Demand. Aggregate Power Factor maintained at CILsubsidiaries is as high as 95% during 2016-17.

• Auto timer based on-off switches in most of the street lighting / CHPs andtownship areas to ensure avoiding unnecessary power consumption during odd hours therebysaving in electricity consumption.

• Construction of strata bunkers in underground (UG) mines to eliminate idlerunning of belt conveyors thereby saving electricity.

• Re-organization of LT (Low Tension) overhead line by Aerial Bunched Cable toavoid unauthorized power tapping.

• Monitoring of load pattern and demand side management of supply points limitingmaximum demand wherever practicable by staggering avoidable load from peak hours tooff-peak hours.

• Elimination or reduction of stage pumping as far as practicable.

• Re-organization of power distribution system.

• Power supply to underground mines by laying cables directly through bore holeswherever feasible.

The above measures are indicative and not exhaustive. (ii) In addition to above CIL /Subsidiary Companies are also pursuing use of alternative energy sources. Various stepshave been taken for utilizing solar power as alternate sources of energy some of whichare as stated below :

• In kilo-watt scale roof top solar plants are in successful operation at variousplaces since their commissioning. Such plants are in operation at Corporate Office of CoalIndia Ltd New town Kolkata (160 kWp) CMPDI HQ Ranchi (190 kWp) CMPDIL RI-VISingrauli (50 kWp) CMPDIL RI-II Dhanbad (50 kWp) Sodepur (5 kWp) and Bankola (30 kWp)at ECL Central Repair Shop Barkakana (25 kWp) at CCL Nagpur Area (80 kWp) and Ballarpurarea (60 kWp) at WCL respectively.

• In megawatt scale one ground-mounted solar power plant (2.016 MWp) is inoperation at MCL HQ since it is commissioning on 13.10.2014.

• In CCL work order for solar power plant of capacity 400 kWp on the roof top ofDarbhanga House CCL HQ Ranchi has already been issued to M/s BHEL. Another such plant ofcapacity 50 kWp has been approved for Kathara Area on the roof top of Executive HostelBuilding. Plant of capacity 80kwp has been aprroved for CMPDIL RI-I office building atAsansol.

• In kilo-watt scale roof top solar power plants have been identified for theircommissioning at ECL (aggregate capacity: 60 kWp) MCL (150 kWp) and CMPDIL RI-VII (60kWp) respectively.

• In mega-watt scale WCL has planning for installation of 1.257 MWp and 50 MWpsolar power projects.


Overall Capital Expenditure during 2016-17 was Rs 7700.06 crores as against Rs 6123.03crores in previous year. Capital Expenditure incurred during 2016-17 is 99.16% of BE(102.21% in 2015-16). Subsidiary-wise details of which are given in

Annexure 17.


The authorized share capital of the company as on 31.03.2017 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 November 2010.

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

Sl 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
5 2016-17 1.248% 78842816 Buyback
6 2016-17 0.92% 57156437 CPSE-ETF

Hence the number of shares held by Govt. of on 31.03.2017 is 4894971329i.e.78.857% of the total 6207409177 number of shares (earlier year 5030970582 i.e.79.649% of total number of shares).

During the year the company has not issued any shares. However pursuant to PublicAnnouncement (PA) published on August 302016 and letter of offer dated September 232016the company has bought back its 108955223 number of equity shares of face value of Rs10/- each fully paid up through tender offer route under Stock Exchange mechanism andextinguished these shares on October 282016. Post such buy-back the number of fully paidequity shares as on stands at 6207409177.

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

As on 31.03.2017 As on 31.03.2016
Shareholding Pattern (%) Share Capital (Rs Crore) Shareholding Pattern (%) Share Capital (Rs Crore)
Government 78.857 % 4894.97 79.649 % 5030.97
of India
Other 21.143% 1312.44 20.351% 1285.39
Total 100.000% 6207.41 100.000% 6316.36

Dur ing the year 2016-17 three subsidiaries of CIL viz. NCL SECL and MCL have boughtback its shares from CIL. The details of such buy back are as follows:-

Name of the Subsidiary NCL SECL MCL
No. of Shares brought back by subsidiary 411135 609250 451743
Buy back Price ` 30260.70 ` 19699.47 ` 35796.02
Consideration received by CIL ` 1244.12 crore ` 1200.19 crore ` 1617.06 crore
No. of Shares held by CIL post buy back 1365593 2987750 1412266


Aggregate borrowings including both current & non-current of CIL stood at Rs 410.77crores in 2016-17 from Rs 269.76 crores in 2015-16 as detailed below.

Figures in Rs Crores

Particulars 2016-17 2015-16
Foreign Loans including deferred credits
- EDC Canada 167.2 174.14
- Liebherr France SA. France 6.64 7.77
- IRCON International Ltd. 171.44 63.92
Chattisgarh State Infrastructure 65.49 23.93
Development Corpn Ltd.
TOTAL 410.77 269.76

In addition to the above Short term Borrowings of CIL stood at Rs 2603.81 crores in2016-17 from Rs 929.03 crores in 2015-16 as detailed below.

Figures in Rs Crores as

Particulars 2016-17 2015-16
Loan repayable on demand
- From Banks 2603.78 929.00
- From Other Parties 0.03 0.03
TOTAL 2603.81 929.03

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/sChhattisgarh East-West Railway Limited (CEWRL) have taken loan from IRCON InternationalLtd and Chhattisgarh State Infrastructure Development Corpn Ltd. with repayment period of5 years excluding moratorium period not exceeding 5 years from the date of signing of LoanAgreement.


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 during2016-17.


Status of On-going Projects:

a) Development of Coal Preparation Plant Simulator

M/s Sharpe International LLC USA (SI) was awarded the work in October 2009 fordevelopment of a Coal Preparation Plant Simulator. Total work was split into 18 activitiesout of which 11 activities were completed and payment to the tune of 40% value had beenreleased in line with provision of the contract. Later in October 2013 SI expressed theirinability to complete the work. US representatives were requested to take up the matterwith M/s Sharpe for a meaningful conclusion of the project. US side advised to contact Mr.Carl Jacobson in this regard.

Consequently Mr. Carl Jacobson was contacted for submission of a proposal forexecution of the project within the framework of existing agreement. From perusal of theproposal submitted by him it was noted that M/s Coal Sim was responsible for thedevelopment of software based on the mining engineering expertise provided by Mr. MarkSharpe. The issue is being examined for meaningful conclusion.

Further Mr. Manoj Mohanty from Southern Illinois University Carbondale USA vide hisemail dated 08.01.2016 expressed desire "to complete the project that SI could notcomplete". Mr. Mohanty was requested to submit his proposal through US DoE and MoCas the project was identified under Indo-US Coal Working Group work plan. Subsequently aproposal from Mr. Mohanty was received through US DoE and MoC GoI. Comments of CMPDI inthis regard were sent to Advisor (Projects) MoC on 03.10.16 and also to Mr. Smouse Scottof

DoE on 27.10.2016.In response to the queries raised by Dr. Mohanty of SIU (vide e-maildated 07.11.2016 forwarded by Dr. Scott Smouse of US DOE) suitable reply has been sent on23.11.2016.

On 22.12.2016 Dr. Scott Smouse of US DOE sent reply indicating project direct cost forthe subject assignment with Power Plant economics increased substantially to US$ 350000plus additional 47.5% charge on the project direct cost as research overhead expenses.

CMPDI vide email dated 09.01.2017 requested Dr. Scott Smouse to look into the matterand asked Dr. Mohanty to respond accordingly so that the final proposal can be preparedand submitted at the earliest with due consideration to fund limitation as the balancefund left in the project is US$ 225000. Necessary reply in this regard is awaited.

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

US DOE had identified Virginia Tech University (VTU) for establishing an efficienttechnique for beneficiation & dewatering of Indian coking coal mines through thetesting of coal samples in lab and pilot plants at VTU for identification ofstate-of-the-art technologies based on which a demonstration plant was to be installed inSudamdih Washery in BCCL. A joint project proposal was drawn and approved by CIL R&DBoard in Dec 2010. The VTU however expressed its inability to sign an internationalagreement and as such the project could not be started.

During the 10th Indo-US CWG meeting in New Delhi on 10.03.2014 US representatives wererequested to take up the matter with VTU for meaningful conclusion of the project. US sidehad advised to contact Dr. Roe Hoan Yoon of Virginia Tech for further discussion in thisregard. Subsequently the issue was taken up with Dr. Roe Hoan Yoon to obtain methodologyfor execution of the assignment.

On perusal of the correspondences made with Dr. Yoon it is observed that VTU is not ina position to associate in the project in accordance with the methodology of the approvedproject. The issue is being examined for meaningful conclusion.

Further Dr. Yoon vide e-mail dated 08.01.2016 informed that VTU had developed HHSprocess for fine Coal Cleaning and would be submitting a proposal on the same. Howeversince the project was identified under Indo-US Coal Working Group work plan Dr. Yoon wasrequested to route his proposal through US DoE and MoC. Further the matter has beenfollowed up from CMPDI's end. Reply is awaited from Dr. Yoon.

Meanwhile Shri R B Mathur President Business Development & Mining StrategyVirginia Mining Resources Pvt. Ltd. (VMR) submitted vide his email dated 09.05.2016 thatVMR is a sister concern of Minerals Refining Company (MRC) which is associated with Dr.Yoon in development of Hydrophobic-Hydrophilic Separation (HHS) Technology. He expressedto undertake a pilot project on HHS Technology under S&T Programme in India. He wasrequested vide email dated 20.05.2016 that a proposal should be sent to this office withdetails of HHS Technology its availability and cost etc. for initiating appropriateaction.

Subsequently a Proposal titled "Application of the Hydrophobic-HydrophilicSeparation (HHS) Process for the Beneficiation of Indian Coals" from M/s MRC wasreceived through US DoE and MoC GoI. Comments of CMPDI in this regard has been sent toAdvisor (Projects) MoC on 07.10.16 and also to Mr. Smouse Scott of DoE on 27.10.2016stating the following:

• The promotor of HHS technology may be requested to submit a project proposal for"Design of a POC-Scale Plant". The proposal would initially include thesetting up of a POC-Scale Plant at CMPDI(HQ) Ranchi (in Stage-I) to compare yield ofdifferent types of Indian coal in HHS process with that obtained through conventionalfloatation scheme.

• Based on the findings of the study carried out in Stage-I the technology may beimplemented in Stage-II for "Conceptual Design of a Demonstration Plant".

In the meantime Shri R.B. Mathur vide e-mail dated 21.11.2016 submitted a revisedproposal with incorporation of the PROPOSED BUDGET BY TASK i.e. the total cost ofinvolvement of US side is USD 1508312 as indicated earlier has been split intodifferent tasks which is related to lab scale testing and consultancy services by theproject proponent. It can be summarized from the revised proposal that

o US Cost till Design of a POC-Scale Plant (as indicated under Task 1 to 3) is USD923104 and

o US Cost for the Conceptual Design of a Demonstration Plant with retrofit (asindicated under Task 4 to 6) is USD 585208.

On 02.12.2016 CMPDI responded to Dr. Scott Smouse that in addition to the reply madeon 27.10.2016 it may further be noted that the indicated cost mentioned above is towardsLaboratory tests on coal samples (to be transported by CMPDI to Virginia Tech Laboratoryin USA) detailed characterization for pilot design design of a POC-scale plantconceptual design of a Demonstration Plant and developing a flowsheet to Retrofit inexisting plant only. It does not include any supply item not even the cost towards HHSset up required for POC-scale plant without which the objective of the HHS scheme cannotbe accomplished.

In the meantime Shri R.B. Mathur President (Business Development & MiningStrategy) Virginia Mining Resources Private Ltd. (vide e-mail dated 16.02.2017) informedthat comments on the observation of CMPDI shall be provided through official channels.Accordingly Dr. Scott Smouse vide email dated 23.03.2017 has submitted a revised proposalas received from Virginia Minerals Refining Corp. Scrutiny of the proposal is done atCMPDI.

New Areas of Collaboration a) Underground Coal Gasification (UCG): UCG is one ofthe key areas under Indo-US collaboration. A project brief for capacity building in thefield of UCG development has been sent to MoC for consideration in India-US Coal WorkingGroup Meeting held on 16th Sept. 2015 at Washington USA for the development of UCG in CILcommand area. Initially DoE indicated that UC-CIEE (California Institute for Energy andEnv.) can be approached. Thereafter Lawrence Livermore National Laboratory was requestedto associate. US DoE agreed to identify US Experts and will inform the Indian side forfurther course of direct action. Response from DoE is awaited.

b) Shale Gas: In the Indo US Working Group Meeting held on 16thSeptember 2015 atWashington USA it has been agreed that potential business collaboration will beidentified for shale gas assessment in "Barren Measures" above coal seams.

c) Coal Mine Methane (CMM): CMM blocks have been identified in and around activemining areas under CIL command area for commercial exploitation of methane in RaniganjCoalfield (ECL command Area) Jharia Coalfield (BCCL command Area). US Experts arerequested to suggest suitable technology providers for commercial extraction of CMM &its utilization.

d) Dynamic planning of large capacity opencast mines: The National EnergyTechnology Laboratory (NETL) USA has been entrusted with the responsibility foridentifying suitable US agencies for cooperation in this area. As advised by US Side M/sNorwest Corporation and M/s Art Sullivan Mine Services were contacted by CMPDI. Finallythe subject of "large capacity opencast mine planning norms and standard safedesigns and dump optimization" was finalized with M/s Norwest Corporation.

After many deliberations on the proposal it was proposed by CMPDI to route theproposal through Indo-US CWG platform prior to submission at the R&D Nodal Agency(i.e. CMPDI) for funding under CIL. A meeting was held at CMPDI with officials from M/sNorwest Corporation on 20th July 2016 and a decision was taken to formulate the proposalin two phases i.e. Phase-I: Study & Capacity Building and Phase-II:Implementation in one of the selected OC mines in CCL. (CCL has given consent for studyand implementation of the proposal in Amrapali OCP vide letter dated 29th Aug. 2016).

Mr. Pat Akers representative of Norwest Corporation again visited CMPDI on21stDecember 2016 for further discussions and Mr. Akers agreed to reframe the scope ofwork as desired by CMPDI.

A revised draft proposal was submitted by Mr. Akers on 17th January 2017 and scope ofthe project has been finalized by CMPDI. A complete proposal with time and cost estimatesis expected to be submitted by Mr. Akers. Reminders were sent through e-mails dated23.02.2017 and 20.03.2017 by CMPDI. In response a few queries/clarifications were soughtby Mr. Akers on 22.03.2017. Subsequently query-wise clarification was e-mailed to Mr.Akers on 23.03.2017 for incorporation in the proposal. Detailed proposal is awaited.

e) Mine Rehabilitation & Reclamation of Indian coal mines:

Projects on sustainable mine closure activities and mining wasteland to be utilized asa source of livelihood for local community were proposed to be carried out with the helpof US agencies. In this regard a proposal was received from M/s Norwest Corporation on15th Dec 2015.

After many deliberations on the proposal CMPDI advised to route the proposal throughIndo-US CWG platform prior to its submission to R&D Nodal Agency (i.e. CMPDI) forfunding under CIL. Subsequently a meeting was held at CMPDI with officials from M/sNorwest Corporation on 20th July 2016 and a decision was taken to formulate the proposalin two phases i.e. Phase-I: Study & Capacity Building and Phase-II:Implementation in one of the selected OC mines in CCL (CCL has given consent for study andimplementation of the proposal in Amrapali OCP vide letter dated 29th Aug. 2016). M/sNorwest Corporation has prepared the revised draft proposal and sent to CMPDI (HQ) Ranchi(Implementing Agency) on 06.09.2016 for necessary scrutiny. The proposal was vetted andthe observation received on 30.12.2016.

In the meantime CMPDI has forwarded the same to M/s Norwest Corporation vide emaildated 28.11.2016 for incorporating their input before submission of the proposal.

Mr. Pat Akers representative of M/s Norwest Corporation had a meeting with CMPDIofficials on 20th December 2016 at New Delhi. After detailed discussions on issues raisedby CMPDI Mr. Akers agreed to incorporate the points raised by CMPDI and agreed to submitthe revised proposal by January 2017.

The revised draft proposal was submitted by Mr. Akers on 10th January 2017. Reply hasbeen sent by CMPDI on 1st February 2017 for submission of revised proposal incorporatingthe suggestions made by CMPDI. In response to the email dated 09.03.2017 by NorwestCorporation regarding some issues of service tax necessary reply has been sent by CMPDIvide e-mail dated 22.03.2017. The revised proposal is awaited.

f) Advanced Dry Coal Beneficiation technology: Dry Coal beneficiation is a priorityarea identified under Indo-US CWG. Mr. Manoj Mohanty of Southern Illinois UniversityCarbondale submitted a short proposal on DryJet Sorting Technologies through US DOE inAug. 2014 which is based on X-Ray detection and pneumatic sorting technology similar toArdee Sort CMPDI is already trying under R&D Project at Madhub washery BCCL. Duringthe last CWG meet held in USA on 16th Sept. 2015 at Washington DC Mr. Manoj Mohanty wascontacted to submit a proposal on FGX Dry Coal separator which he also confirmed throughemail dated 08.01.2016. The proposal is awaited.

Visit of US delegation at CMPDI(HQ) Ranchi

A delegation from US Consulate (lead by Sri Prasenjit Gupta US Consul for Politicaland Economic Affairs) visited CMPDI on 15.02.2017 to discuss Indo-US collaborativeprojects CBM/ CMM Clearing House functioning and the possibility of future collaboration.

Indo-EU Collaboration: Status of On-going Project:

a) Introduction of a new underground mining technology at North-Eastern Coalfields inAssam

A proposal titled "Introduction of a new underground mining technology atNorth-East Coalfields in Assam India" was put forward to the Indo-EU Working Groupon clean coal technology for consideration in 2012. The feasibility study to design asuitable mining technology and operation was awarded to Spanish Consortium led by AITEMIN.AITEMIN has already started their work since December 2013. The members from SpanishConsortium visited Tipong UG mine of NEC Assam during 10th - 14th Feb 2014. During thevisit they had detailed discussion with concerned CMPDI & NEC authorities andcollected necessary data/information regarding the aforesaid work. The Feasibility StudyReport as reported by AITEMIN has already been submitted to the European Commission on10th Oct.'14 according to the contract terms and recently the same has been receivedthrough M/s AITEMIN. However the feasibility study report is yet to be made available toCIL/ CMPDI by the European Commission.

New Areas of Collaboration

During 8th India-EU CWG meeting held in Chennai from 28th – 29th Nov. 2013 apresentation was made by CMPDI on reclamation practices land management and utilizationof mine voids for storage of mine water which is generally of good quality. Technicalknowhow from EU was sought to bring back the post-mining land use pattern as existingbefore the mining and utilization of the same for income generation for the localcommunity. A presentation on the requirement of the technical assistance was made by CMDCMPDI during 9th India-EU CWG meeting held in Germany from 10th – 11th Sept. 2014.However offer of assistance is still awaited from EU side.

Indo-Australian Collaboration Status of On-going Projects:

CMPDI has a Memorandum of Understanding (MoU) with Commonwealth Scientific andIndustrial Research Organisation (CSIRO) signed on 12th June 2013 for a period of fiveyears for furthering scientific cooperation. A team from CMPDI visited CSIRO Australia inJuly 2015 for identifying possible collaborative areas in the field of clean coaltechnologies.

a) Capacity Building for CMPDI Lab o CMPDI has established a state of the art CoalBed Methane (CBM) lab that can carry out parametric studies for resource estimation andreservoir characterization for CBM and Shale gas. o In March 2016 S&T Project titled "Capacitybuilding for extraction of CMM Resource within CIL Command areas" was approved byMinistry of Coal (MoC) under Govt. of India S&T funding which is jointly implementedby CMPDI and CSIRO. The project is of three (03) years project duration. A CollaborativeUnderstanding agreement for execution of the Project has been signed between CSIRO andCMPDI on 22nd December 2016.

o In February 2017 CMPDI organised a thorough discussion on lab equipment in CBM labwith CSIRO and GEOGAS representatives. The later visited CBM Lab and emphasized onplanning scientifically correct methodology and implementation of new technology drivenequipment to be covered under the above S&T project. The team also visited fourdrilling sites of CMPDI. One of the boreholes had been selected for desorption studies.The team discussed methodology of desorption studies carried out by CMPDI team at site.

b) Ventilation Air Methane (VAM) o CMPDI has formulated a project jointly withCSIRO titled "Abatement and utilization of Ventilation Air Methane (VAM) from workingunderground degree–III coal mine in India". The implementing agencies for theproject will be CSIRO and CMPDI with BCCL as a sub-implementing agency. Identified projectmine is Moonidih Underground Mine in Jharia coalfield of Bharat Coking Coal Ltd. (BCCL).

o CIL R&D Board has approved the project in principle with 100% retroactive fundingat present and in due course 40% should be reimbursed from National Clean Energy Fund(NCEF) with a directive to reduce duration of project from 42 to 30 months in consultationwith CSIRO. CSIRO has agreed to reduce the project duration to 36 months.

o The revised proposal was placed in the 26th Meeting of R&D Board of CIL held on27.12.2016 and the Board advised to place the proposal before the Apex Committee withcertain modification.

c) SIMTARS engagement in Mining simulation Explosion testing and Mining safetytraining

o SIMTARS in collaboration with ISM & CIMFR Dhanbad has been engaged in miningsimulation explosion testing and mining safety training for Indian coal mines throughpurchase of mining simulators through an R&D Project funded by CIL.

o For setting up Virtual Reality Centre (VRS) at ISM a meeting was held on 23.02.2016which was attended by Additional Secretary MHRD and Chairman CIL. ISM in associationwith SIMTARS formulated a proposal for setting up VRS at ISM Dhanbad.

o SIMTARS agreed to give details about their requirement financial involvementcomponent wise details for different modules for training based on some need analysis inIndian scenario for establishing the Centre for imparting training of trainers etc.SIMTARS proposal included the following:

• Identification of training requirements

• Location site and building work requirements

• Mine and infrastructure modelling requirements

• Immersive display system requirements

• Implementation of logistic requirements

• Support requirements

o A space for establishing the Centre has been identified by ISM under the Centre ofExcellence in Mining Technology.

New Areas of Collaboration

a) Underground Coal Gasification (UCG): In the India – Australia EnergySecurity Dialogues held during 8th – 11th February 2016 at Brisbane for thedevelopment of Underground Coal Gasification (UCG) Australian companies like M/s CarbonEnergy Limited was asked to look forward for the opportunities coming up in India in viewof 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 Carbon Energy Ltd sharedtheir outcome of Key Seam UCG Technology developed at the Bloodwood Creek UCG TrialProject at QLD in Australia.

It was agreed that in view of constitution of Inter-Ministerial Committee (IMC) for thedevelopment of UCG blocks the proponent may approach to the developer to extendtechnology to them after the awarding of blocks.

b) CBM/CMM Development in CIL Command Area: In the India – Australia EnergySecurity Dialogues held during 8th – 11th February 2016 at Brisbane the Australiantechnology providers and experts from the Australian Universities came forward forparticipation in developing CBM/CMM areas under the leasehold of CIL in view of new policyof Government of India permitting CIL to explore and exploit CBM/CMM on commercial lines.University of New South Wales (UNSW) has been requested to provide list of experts andtechnology providers.

c) Review Mining Simulation technologies from Immersive Technologies Australia:This is technology based software for simulation based training of HEMM. The ImmersiveTechnologies Pty Limited Australia presented the same at the IMME 2016 in Kolkata.

India-Australia Round table Meeting at CIL(HQ) Kolkata

On the request of Australian High Commission a round table meeting was jointlyorganized by IIT-ISM and CIL at CIL (HQ) Kolkata on

19.11.2016 to enhance Indo-Australian collaboration opportunities on coal miningtechnology safety clean-coal technology etc. with the help of Australian Universitiesand Institutions. The meeting was attended by a number of Australian firms to showcasetheir technologies and services for possible future collaboration.

Indo-Poland Collaboration New Areas of Collaboration

Secretary (Coal) Govt. of India led a delegation comprising of Chairman CIL JointSecretary (JS) MoC and Adviser MoC to Poland during 6th to 9th June 2016 to understandthe energy policy of Republic of Poland with particular reference to development of coalcoal mining technologies reclamation of mined-out areas capture and uses of Coal MineMethane (CMM) and technologies for development of underground (UG) mines etc.

A 5-membered team of Polish Experts (3 from AGH University Krakow Poland & 2 fromGIG Katowice Poland) visited MoC CIL (HQ) ECL BCCL and CMPDI (HQ) along with a teamof 4 members from manufacturers of Poland. This visit (4th-7th July 2016) was made byPolish Expert as a sequel to the visit made by an Indian delegation led by the Secretary(Coal) to Poland in the month of June 2016. In view of the above a Poland TechnologyGroup (PTG) has been constituted and some of the areas was identified such as Slopestability of overburden dump (using advanced modelling technique) Dry Coal beneficiationExtraction of remnant coal pillars with surface protection Pre-drainage of coal minemethane (CMM) and commercial recovery of coal bed methane (CBM) and Control measures formine fires of Jharia for obtaining the solutions from Polish side. A detailed discussionwas held on the identified areas at CMPDI (HQ) Ranchi between Polish Experts andOfficials of PTG & other officials of MoC Coal India Limited/CMPDI wherein technicalco-operation was sought on the identified areas from Polish Experts. A data dossier on theabove identified areas has been prepared by CMPDI with necessary technical help fromdifferent subsidiaries of CIL and the matter is being taken up at CIL level.

In continuation of the collaborative studies a team of 4 officers (2 from CMPDI and 1each from CCL & BCCL) visited Poland from 13th -17th February 2017 to enhance skillin the field of methane extraction and dry coal beneficiation.

Indo-Japan Collaboration New Areas of Collaboration

a) Dry Coal Beneficiation: M/s Nagata Engg. Co. Ltd. has been requested toprovide the detail technology including specification and performance data commercialavailability of the separator and cost thereof with other supports (if any). The responseis awaited.

b) Slope Stability Monitoring: Dr. Hideki Shimanda of Kyushu University Japanhas been requested to share their technical expertise and valued opinion for Indiangeo-mining conditions. Reply is awaited.

c) Subsidence Measurement & monitoring using DINSAR Technology: J-Coaldelegation led by Mr. Masafumi Uehara visited CMPDI in August 2016 and presented thepossible use of DINSAR technology for subsidence monitoring in Jharia Coalfield. Thedelegation also visited the subsidence sites at BCCL. On query whether a real timemonitoring and subsidence prediction was possible through this technology Mr. Ueharainformed that real time monitoring at present was not possible through this study as theminimum interval for this study can be one and half months which is the re-visit time ofthe satellite to acquire the data and they do not have expertise in subsidence predictionpresently. Under such circumstances the project is kept in abeyance.

Indo-Russian Collaboration

The 21st Meeting of India–Russia Joint Working Group on Energy and EnergyEfficiency was held on 7th September 2016 at Delhi. Indian side expressed its interest intechnical cooperation with Russian companies in the field of Underground Coal Gasification(UCG) and resource assessment of Coalbed Methane (CBM) in distressed conditions. Russianside agreed to pass on the information to concerned Russian companies.

Indo-Belarus Collaboration

Two proposals regarding trial run of 350 Tonne dump trucks of Belaz make and technologyfor North Eastern Coalfields by M/s NIVA of Belarus were received from Ministry of Coalthrough CIL on 14.03.2017. Necessary comments of CMPDI on the above proposals have beensent to CIL on 20.03.2017 for onward communication.



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

Coal India Africana Limitada (CIAL) a wholly owned subsidiary of CIL was grantedprospecting licenses for two leaseholds covering a total area of 224 sq. km. by theMinistry of Mineral resources Government of Mozambique. Based on exploration activitiescarried out in the license areas from 2012 to 2014 170 area having no occurrence ofcoaly horizons till a depth of 500m was surrendered to the Government of Mozambique. Theremaining 54 area was retained for which new licenses were issued. Based onGeological Report of the license areas Mineability Study to assess the techno-economicviability of mining of the remaining 54 sq. km. was conducted in 2015-16. The MineabilityStudy revealed that the leasehold areas are not techno-economically viable for commercialmining. Based on this outcome of the study CIL Board approved complete surrendering ofthe prospecting licenses. Pursuant to these directives of the Board applications forsurrendering the remaining 54 of the leasehold area for prospecting was submittedto the National Institute of Mines (INAMI) Government of Mozambique. The Government ofMozambique vide their letter dated 16th August 2016 accepted the application forrelinquishment of the said licenses.

(B) Acquisition of coking coal assets abroad

Pursuant to the directives of the CIL Board initiatives for acquisition of coking coalassets with particular focus on Australia being the prime destination for sourcing cokingcoal to India are in process. As part of the preparedness towards acquisitioninitiatives empanelment of Merchant Banker (MB)/ Investment Banker (IB) has been done torender assistance in acquisition process.


(A) Setting up of natural gas based ammonia-urea complex at Gorakhpur Sindri andBarauni

In line with the decision in a meeting at PMO on 07.04.2016 a Joint Venture Agreementwas signed on 16th May 2016 between CIL and NTPC (shareholding 50:50) to set up newnatural gas based ammonia-urea complexes at the premises of closed fertilizer units atGorakhpur & Sindri of FCIL and HFCL at Barauni. Hindustan Urvarak & RasayanLimited (HURL) was registered on 15th June 2016 as a Joint Venture Company of NTPC andCIL with IOCL to join subsequently. The Supplementary Agreement to the JVA was signedamongst CIL IOCL NTPC FCIL and HFCL on 31st Oct 2016 with shareholding of CIL –29.67%NTPC – 29.67%IOCL – 29.67% and FCIL/HFCL(combined) – 10.99%.ThePre-Feasibility Report for Gorakhpur and Sindri was prepared by Engineers IndiaLimited(EIL) and that for Barauni was prepared by Projects Development India Ltd(PDIL).The Board of Directors of HURL decided to set up ammonia-urea complexes at aforementionedsites through Lump-Sum Turnkey (LSTK) mode and PDIL was appointed as consultant forrendering assistance in the entire process. The pre-qualification process for LSTKcontractors has been completed through a global EOI process. Thereafter NIT for selectionof LSTK Contractors for setting up of the ammonia-urea plant at each site was prepared andissued after due approval of the HURL Board to the pre-qualified LSTK contractors for eachsite. Concurrently pre-project activities are in progress in all the three sites.Geotechnical investigation topographic survey water availability studies and EIA/EMPpreparation have been carried out. The Hon'ble Prime Minister has laid the foundationstone at Gorakhpur plant site on 22nd July 2016.

(B) Setting up of coal based ammonia-urea complex at Talcher

In line with the CCEA decision of August 2011 a Joint Venture company of RCF GAILCIL and FCIL named Talcher Fertilizers Limited (TFL)has been formed to set up anAmmonia-Urea plant at the site of the defunct fertilizer plant of FCIL at Talcher throughSurface Coal Gasification technology. The shareholding of the Promoter companies is RCF– 29.67% CIL – 29.67% GAIL – 29.67% and FCIL – 10.99%.

After extensive deliberations for selection of coal gasification technology licensorsat PMO NITI Aayog Dept. of Fertilizers etc. it was decided in a meeting chaired byHon'ble Minister (Chemicals and Fertilizers) on 31.08.2016 to float a fresh Expression ofInterest (EOI) for pre-qualification of technology licensors for coal gasificationtechnology. The consultant PDIL floated EOI on behalf of TFL on 14th September 2016 andresponses received were evaluated and recommendations placed for approval of TFL Board. Ason date the TFL Board has accorded ‘in principle' approval to the Techno-EconomicFeasibility Report (TEFR) with the stipulation that investment decision would be takenafter establishment of financial viability through a Detailed Feasibility Report (DFR)after due approval of promoting companies.


The Master Plan for dealing with fire subsidence and rehabilitation in the lease holdof 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 7112.11 crores forJharia Coalfields and Rs 2661.73 crore for Raniganj Coalfields. Implementation period hasbeen delineated as 10+2 years.

High Powered Central Committee meetings were conducted under the chairmanship ofSecretary (Coal) MoC to review the activities of implementation of Master Plan. Fourteenmeetings were conducted so far; last meeting was held on 13/02/2017.

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 lease hold of EasternCoalfields Ltd.

Seven Surface Fires were 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 44598 persons. Most of the ECL employeesresiding in 3 endangered locations have been shifted and remaining persons were allottedquarters and are in the process of shifting. Chief Secretary Govt. of W.B. in a meetingwith Secretary MOC on 24.03.2017 advised ADDA to take necessary action to finalize theDemographic Survey and valuation latest by 23/05/2017.According to the approved Masterplan about 896.29 ha. (2214 Acres) land would be required for resettlement of non-ECLfamilies.

In the meeting held on 24.03.2017 at Nabanna under the Chairmanship of Chief SecretaryGovt. of WB where in it was decided that ADDA ECL & CMPDIL will jointly find out thepossibilities of large chunk of land to be used for rehabilitation purpose within a monthtime. It was also discussed that 15% of population under rehabilitation scheme are to beaccommodated in Durgapur for which Bengal Aerotropolis Limited (BAPL) land would be madeavailable. For rest 85% who are to be rehabilitated in Jamuria Ranigunj Asansol andBaraboni blocks land in big chunks has to be identified.

W.B. Housing Board (State Government of West Bengal has now approached to the MOC toaccord permission to change the responsibility to Housing Dept Govt. of W.B. in place ofADDA) issued work order for construction of 160 flats on 27/02/2017 for an amount of Rs88349173.00 (` Eight Crores Eighty-Three Lakh Forty-Nine Thousand One HundredSeventy-Three only) at Bijoynagar Mouza of Jamuria Block. Construction of houses hasalready been started from 10.03.2017.

DPR for construction of 2144 flats (which includes earlier floated tenders forconstruction of 160 houses) on a land of 26.08 Acres at Bijoynagar Mouza comprising 16flats in each block having built up area of 39.13 Sq m per flat has been prepared byHousing Board on 08/03/2017 with an estimated cost of Rs 164.47 Crores. Housing Board hasalso planned to construct 7000 10000 13000 and 16000 houses in the years 2017 20182019 & 2020 respectively for implementation of the Rehabilitation Project for shiftingof people residing in the unstable locations within the prescribed time schedule.

i). Diversion of National Highway(NH-2):

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.

In the 14th HPCC meeting ECL informed that about 300m Stretch of NH-2 is under unstablearea and therefore unsafe. Further a study was carried out by CIMFR in which voids werefound at a low depth that may cause occurrence of potholes. The report has been sent toNHAI on 07.02.2017 as well as forwarded to DY. DG(EZ) Sitarampur on 23.02.2017 forinformation.

In the 14 th HPCC meeting it was decided to constitute a committee under theChairmanship of DGMS with representatives from NHAI CIMFR ECL and ADDA to examine andrecommend action to be taken by NHAI.

Accordingly on 20.03.2017 a meeting was held at DGMS Office Sitarampur under theChairmanship of Dy. DG(EZ) where representatives of ECL CMPDIL NHAI and ADDA werepresent. It was further suggested that NHAI should approach CIMFR to get idea of blindbackfilling and certification of action required for proper stability from CIMFR.

(ii). Diversion of District Board (DB) Roads.

The diversion of DB Road at Mohanpur Colliery of Salanpur area is not required as theproposed route is coming under mining operations. The existing road between Amdiha andSamdih via Lalgunj will serve the purpose of connection.

In the proposed diversion route of Gorangdih Begunia colliery 3.512 acres of land isrequired out of which 3.040 acres is Raiyati land and 0.472 acres being WB Govt. vestedland. For diversion of this DB road at Jamgram mouza under Barabani PS public notice hasbeen issued. The District Level Purchase Committee has taken up the issue regardingpurchasing of Raiyati land.

For diversion of DB road at Ratibati colliery 4.847 acres land is required (1.207 acresof ECL land+ 0.370 acres of Raiyati + 3.270 acres of DGCA land). NOC for ECL land wasplaced in the 295th meeting of Board of Directors held on 01.02.17 for according approval.Board directed to obtain NOC from MOC. Proposal to obtain clearance from MOC has been senton 22.02.2017. iii) Diversion of Railway line:

Andal-Sitarampur Railway line:

RITES has submitted the ‘Revised FSR' to Eastern Railway authority for in-principle approval of the same.

In 14th HPCC meeting representatives of Railways were asked to direct concernedofficers of Eastern Railways to examine the revised FSR submitted by RITES on 10.01.2017for taking further necessary action.

Sr. Divn. Operation Manager Asansol has informed that the revised FSR has beenexamined and found the same would be acceptable subject to compliance of certainconditions.

ECL has suggested some amendments in the Revised FSR. The suggested amendments of ECLwas submitted separately by M/s RITES to Eastern Railway authority on 01.03.2017 forconsideration.

iv). 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. IOCL informed that regularmonitoring is being done by them to detect any deflection of pipe line due to subsidence.

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 Department 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 Master Plan total surfacearea affected by fire described as 8.9 NRSC has deduced these findings from theState of Art Satellite based technology. Action is being taken by BCCL for dealing withfire as stipulated in the Approved Master Plan.

NRSC has been requested to repeat the satellite TIR survey. NRSC has confirmed for thesurvey in 2017. The finding of NRSC will be submitted after the survey is completed. BCCLwould improvise the fire action plan for speedier liquidation of fire area. BCCL hassigned the MOU and sent to NRSC.Work order has been given to NRSC by BCCL.

As per Master Plan total 54159 families' in 595 nos. sites to be surveyed. CIMFR ISMwhiz Mantra and JRDA has completed survey of 595 sites for 91879 families of encroacherssurvey of private houses to be started.

3360 houses have been constructed in Belgoria Rehabilitation Township "JhariaVihar" in which 1923 non –families(encroachers) are shifted from affected areas.Construction of 6992 units are in progress out of which 992 units are in completion stage.

In order to shift BCCL employees residing in fire affected areas 6668 houses have beenbuilt by BCCL in non-coal bearing zone and 2852 families from fire & subsidence placeshave been shifted to these houses. Further construction of 9184 units by BCCL is underprogress and in different stages of completion.

As per Master Plan 2730 Acres of land would be required for resettlement of non-BCCLfamilies for which JRDA is pursuing for acquisition of land and proposals are now atdifferent stages. NOC of 86.44 acres of vacant land in Bhuli Township and 849.68 acres ofnon-coal bearing land in and around Belgoria Township belonging to BCCL has been given byMoC which has been communicated to JRDA along with all the required mouza plans fordeveloping new Townships by JRDA.

Coal India Ltd has infused Rs 161.62 crores to ECL and Rs 1089 crs to BCCL till March2017 for implementation of Master Plan.


15.1Environmental 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 2016-17 CMPDI has prepared a totalof 15 Form-I and formulated 22 Draft EIA/ EMPs. 17environmental clearances were alsoobtained from MoEF for different Projects/Group of Mines Washeries and Sand miningprojects of CIL during the year 2016-17.

15.2Pollution Control Measures and Their Efficacy

Coal India has been keeping utmost importance in protecting environment by practicingand following sustainable mining so as to ensure that the mining operations has leastimpact on environment. The various Pollution control measures and initiatives are taken upconcurrently with mining operations for maintaining acceptable/permissible limits of majorphysical and chemical attributes of environment namely air water hydrogeology groundvibrations noise land & nearby population.

(A) Air Pollution Control Measures:

To control and reduce dust generation during drilling blasting loading and Coaltransportation Coal India Ltd. has taken up various initiatives based on theEnvironmental Management Plans (EMP) which were already prepared before commencement/enhancement of production of coal mines. This EMP is prepared keeping in mind the impacton existing environment and forest due to coal mining projects through Environment ImpactAssessment (EIA) study of each project.

Suitable water spraying systems for arresting fugitive dust in roads washeries CHPsFeeder Breakers Crushers coal transfer points and coal stock areas are being installed.Mist spray systems have been introduced along conveyor routes transfer points and onbunkers. Mobile water sprinkling has been provided in all the haul roads of OC mines. Inaddition to these the projects are enhancing the water sprinkling through engagement ofcontractual water tankers. Automatic sprinklers have also been installed in CHPs. Some ofthe important initiatives are also mentioned below:

a) Mobile sprinklers have been installed along haul roads to control dust generated bytruck and dumpers movements.

b) Optimum level of loading of coal in trucks and railway wagons to avoid spillage onroads and rail.

c) Covering of coal trucks by tarpaulin is being followed to avoid spillage of coalparticles during transport.

d) Blacktopping repairing and strengthening of haul roads are regularly andscientifically carried out.

e) Plantation in surroundings of active mining areas and along the hauls roads arecarried out to create green buffers/ green belts in and around the mines.

f) In order to reduce the dust pollution due to road transportation eco-friendly modeof transport are being introduced. Transportation to thermal power stations who consumemore than 80% of thermal coal are carried out by rail / series of belt conveyors. Railheads are constructed and made available nearer to mine so as to reduce roadtransportation. CIL have constructed / are constructing integrated CHP for rapid loadingof wagons and trucks.

g) Tube conveyors mode of transportation is also being introduced in some mines fortransportation of coal to thermal power plants. The wall/sides of CHPs are also covered byside cladding with GI Sheet to control pollution at source.

h) To contain dust emission at source itself dust extractors / wet drilling systemsare being undertaken.

i) Controlled blasting and habitation away from the mines have been introduced as faras possible.

j) Modern technologies like Surface Miners and Continuous Miner at differentsubsidiaries of CIL which generates lesser air borne pollution as compared to conventionalmining have been introduced to the system. During the year 2016-17 CIL has produced about48.89% (i.e. 255.027 MT) of its production from open cast mines through Surface miners.Continuous miners contributed about 4.689 MT in the production from underground mines.

k) The quality of Ambient air in and around the mine site is being monitoredfortnightly. The required and stipulated numbers of ambient air quality monitoringstations are maintained as per environmental rules and regulations of Environment(Protection) Act 2006 and its reports are regularly submitted to SPCBs and MoEF&CC.

l) The concept of ‘Continuous Ambient Air Quality Monitoring Stations' (CAAQMS)are being introduced and are installed / being installed in large mines of CIL. ContinuousAmbient Air Quality Monitoring Stations have been installed at 4 locations in SECL and 01location of WCL.

(B) Mine Water Management:

Water which pumped out from the underground and open cast mines are being contaminatedwith suspended particles. Some small quantity of water being contaminated during washingand cleaning of HEMM. CIL also takes initiative by treating this 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.

? Domestic Effluent Treatment Plant (DETP): The domestic effluent from majorresidential colonies is treated in DETP either by activated sludge method or by extendedaerated lagoons.

? Mine Discharge Treatment Plants (MDTP) are installed in mines for treatment ofmine water. Strata seepage water in mines first gets accumulated in the mine sump whichprovides for initial settlement of suspended particles. The supernatant water from thesump is then pumped out on surface and treated in surface sedimentation tank whichprovides for second stage settlement. The treated mine water is then used partly withinthe mine premises for dust suppression fire fighting plantation washing and furthertreated as per drinking water standard for supply to company township and nearby villagesthrough pressure filter / RO etc. After ensuring maximum re-use within and around minepremises the excess treated mine pumped out water is released onto local nalla / streamswhich is used by the surrounding local population specially for agricultural use.

? In order to assess the impact of mining activities on water quarterlymonitoring of ground water levels is being carried out in and around the coal minescovering the buffer zone (i.e.10 Kms radius). Further recharging of ground water is alsotaken up within mine premises as well as in nearby villages through rainwater harvestingdigging of ponds/development of lagoons de-silting of existing ponds/tanks etc.

? Regular monitoring of mine effluent workshop effluent and domestic effluentis carried out every fortnight as per Environment (Protection) Rule – 2006. Reportsof the same are regularly submitted to SPCBs and MOEF.

(C) Noise Pollution Control Measure:

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.

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

(D) Land Reclamation:

Reclamation of the mined out areas and the external OB dumps is a major environmentalmitigatory activity taken up by Coal India. In all new mines reclamation of mined outareas are being done as per the Environmental Management Plan and Mine closer plan whichare approved by MoEF&CC. Back filling of the OB material in the mine voids is part ofthe mining operation cycle. Topsoil preservation storing and use in the plantation areasof the reclaimed areas are being done in the opencast mines wherever necessary. Concurrentreclamation and rehabilitation of mined out areas (subject to technical feasibility as pergeo-mining conditions) are taken for gainful land use. Opencast mines are filled up withoverburden extracted during the process of extraction of coal and after technicalreclamation is completed plantation is carried out which is termed as biologicalreclamation.

? 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 sites are 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 like Gunjan Park of ECL Ananya Vatika of SECL Nigahi of NCLSaoner of WCL Kayakalp Vatika Rajarappa Eco Park in CCL etc.

? T ree plantation: Green belt is developed through extensive treeplantation programme every year by the subsidiaries of Coal India Ltd. Avenue plantationplantation on the OB dumps plantation around mines residential colonies and availableland is undertaken in existing as well as new projects. The subsidiaries of CIL haveplanted around 94.015 million of trees covering an area over 37557.458 Ha. till March2017.

? 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 Mm (Coal+OB) per annum are beingmonitored every year while remaining OCPs excavating less than

5 Mm (Coal+OB) per annum are being monitored every 3rd year. This gives a clear pictureof reclamation which otherwise is difficult to accurately estimate. The study during2016-17 shows that all the major OCPs (excavating > 5 Mm (Coal+OB) per annum) havereclaimed area of 77.59% and active mining area is only 22.41% of the total excavatedarea. In addition CIL is conducting vegetation cover mapping through satellitesurveillance in every 3 years.

? Mine Closer Plan (MCP): Mine closure plan is an integral part of theproject report prepared by CMPDIL for coalmines. This progressive mine closure plan alsoforms a part of the EIA/EMP prepared and submitted to MOEF for Environmental Clearance.The progressive reclamation of mined out areas inbuilt in the project cost is implementedaccordingly. After exhaustion of reserves statutory obligations in respect of closure arealso followed. CIL is practicing mine closure very effectively. CIL is committed forrestoration of abandoned / mined out areas in a socially acceptable & environmentfriendly manner. As on March 2017 out of 454 identified mines for 453 mines wereprepared 445 MCP were approved by concerned Subsidiary board 422 numbers of Escrowaccount were opened and an amount of Rs 5487.13 Cr deposited in this account.

? Strive f or continual improvement in performance by setting targets measuringprogress and taking corrective action.

CIL has engaged Indian Council of Forestry Research & Education (ICFRE) Dehradunfor Environmental Audit of 20 no. 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 hassubmitted final report for 3 mines of MCL and 01 mine of BCCL. ICFRE is conducting studyfor the remaining mines.

CIL has also engaged Rain Forest Research Institute for preparation of Bio–diversity Management Plan Regional Wild life plan and carrying capacity study forMakum coalfields of Assam.

CIL has signed MoU with National Environmental Research Institute(NEERI) Nagpur tocarry out studies monitoring and collaborative research work for "Sustainable CoalMining in CIL". NEERI is also studying on the effectiveness of supplyingde-shaled/dry-beneficiated / washed coal (reduction in ash content by 5-6%) to powerplants following all pollution control measures. NEERI will submit environment managementplan for mitigation of impact on regional environmental quality due to supply of deshaled/ dry –beneficiated coal to power plants in context of prevailing pollution controlpractices.

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

CIL has signed MoU with Energy Efficiency Services Limited (EESL) to promote energyefficiency provisions in CIL and its subsidiary companies. CIL has taken steps for usingLED lights substituting CFL lights

To promote Green Initiatives taken by GoI CIL has submitted Green Energy Commitmentletter to MNRE for developing 1000 MW Solar Power Projects. For implementation ofthese projects CIL has signed MoU with Solar Energy Corporation of India (SECI).

In the 1st phase tender was floated for setting up of 2x100 MW Solar PV Project in thestate of Madhya Pradesh. But due to current downward trend in prices of solar projectsand availability of land in Madhya Pradesh for Solar park the tenders were cancelled andSECI was advised to go for retendering of above projects.

CIL's initiatives has resulted in installation of 3 MW(Approx) capacity in CIL HQ andits Subsidiary Companies.

15.3 Management System Standards

CIL HQ has got certification against ISO 9001 and ISO 50001 (Quality Management Systemand Energy Management System) from Bureau of Indian Standards and implementation /integration of Environment Management System (ISO 14001) is under progress. As on 31stMarch'2017 two of our subsidiaries NCL and MCL are certified for their companywideIntegrated Management System (ISO 9001 ISO14001 and OHSAS 18001) and ECL is likely to becertified shortly. CCL BCCL and WCL are in the process for implementation of company wideIntegrated Management System (ISO 9001 ISO 14001 and OHSAS 18001). CMPDIL HQ and itsseven RIs are certified for ISO 9001:2015.

15.4 Assessment of Impact of Coal Mining in different coalfields

Vegetation cover mapping of 6 coalfields viz. Jharia Talcher Bishrampur WardhaKamptee and Makum have been completed during the year 2016-17 for assessing the regionalimpact of coal mining on land/vegetation cover in the span of 3 years to take remedialmeasures required if any.

15.5 R&R P olicy of CIL 2012.

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

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 forhomestead lump sum payment in lieu of alternate house site subsistence allowance to eachaffected displaced family etc.

R&R Policy of CIL is being revised specifically in background of the RFCTLARR Actof 2013.

16. COAL BED METHANE (CBM) / COAL MINE METHANE (CMM) 16.1 Collaborative commercialdevelopment of CBM in Jharia&Raniganj coalfields by the 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 ofONGC–CIL on nomination basis for commercial development of CBM. CMPDI is implementingthe projects on behalf of CIL. ONGC is the Operator for both CBM blocks and carrying outthe jobs as per contractual agreement with the Govt. of India. On completion of CIL partof work programme by CMPDI and supplemented by appraisal activity by ONGC has resulted informulation of Field Development Plan (FDP) by the Operator i.e. ONGC.

The FDPs for both the CBM blocks were approved by the Government of India in July2013. Petroleum Mining Lease (PML) for Jharia CBM block has been granted by Govt. ofJharkhand in July' 2015 and environment clearance for Jharia Block is likely to begranted soon.

Model Co-development Agreement for Simultaneous Coal Mining and Coalbed Methane (CBM)Operations in the Overlapping Areas has been issued by MoP&NG in February 2017.Matter of Co-development agreement in regard to Jharia CBM Block in Parbatpur Central CoalBlock overlapping for optimum exploitation of coal by SAIL and CBM by ONGC (operator ofthe CBM block) is under deliberation between SAIL and ONGC. In the Steering Committeemeeting held on 30th March 2017 at DGH it has been agreed that ONGC will submit revisedFDP and cost estimate taking in account all constraints and accordingly in the Operatingcommittee it will be deliberated for consideration and further perusal for competentapproval.

16.2 CBM related studies:

CMPDI and GSI are carrying out studies related to "Assessment of Coalbed MethaneGas-in-Place Resource of Indian Coalfields/Lignite fields" in selected boreholesbeing drilled under Promotional Regional exploration since X Plan period and XI Planperiod respectively under Promotional Regional Exploration (PRE) funding. A total of 60boreholes (40 by CMPDI and 20 by GSI) have been taken up for CBM specific data generationduring the XII Plan. Studies have been completed in forty (40) boreholes by CMPDI and inNineteen (19) boreholes by GSI. During the year 2016-17 studies has been done in eight(8) boreholes by CMPDI. CMPDI & GSI have completed CBM specific studies in 130boreholes (92 by CMPDI & 38 by GSI) since commencement of the work.

During the year one report based on CBM related studies has been submitted by CMPDIfor Gondbahera Ujheni block Singrauli Coalfield.

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

S&T project on "CBM Reserve Estimation for Indian Coalfields" has beenapproved under EoI of Coal S&T project in Feb.'14. The project is of 3 years durationwith completion schedule of March 2017 for which time extension has been considered inSSRC meeting held on 23rd Mar.'17. IIEST (BESU) Shibpur is the main implementing agencyand NGRI Hyderabad; TCE Kolkata and CMPDI are co-implementing agencies. An area in SouthKaranpura Coalfield has been taken-up for 2D/3D Seismic survey by NGRI. 75% of study areahas been covered by 2D Seismic survey in South Karanpura Coalfield and balance work wastaken up by NGRI in January 2017. 3D Seismic survey is likely to be undertaken in May2017.

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 create the database for assessment of shale gas potentiality and facilitatedelineation of more blocks for Shale Gas development.

CMPDI was to carry out shale gas specific data generation in 25 boreholes during XIIPlan period under PRE funding. For the plan period shale gas studies have been completedby CMPDI in twenty five (25) boreholes. During the year 2016-17 target has been achievedby completing the studies in five boreholes by CMPDI.

16.3.1S&T Project on "Shale gas potentiality of Damodar Valley basins ofIndia"

S&T project on "Shale gas potentiality of Damodar basin of India" isunder implementation by NGRI Hyderabad as the principal implementing agency and CMPDIRanchi & CIMFR Dhanbad as sub implementing agencies. The project completion schedulehas been revised to May 2017 with total project cost of Rs 20.38 crore. The projectobjective is to evaluate potentiality of Shale gas in Damodar basin through integratedgeophysical geological geo-chemical and petro-physical investigations."AutomaticPorosimeter cum Permeameter" instrument supplied by M/s Vincy Technologies Inc.France has been commissioned at CBM Laboratory CMPDI.

NGRI along with CMPDI & CIMFR selected Rangamati B block (Tumni & KanchanpurSector) Raniganj Coalfied and 3D seismic survey in 2.4 sq km out of total 3.2 sq km areahas been completed. Interpretation of captured data is in progress. Balance 3D Seismicsurvey work is likely to be taken up by NGRI. On the findings from 3D seismic surveyCMPDI will take up its part of committed activities i.e. drilling of boreholes.

16.4 Commer cial development of Coal Mine Methane

Ministry of Coal vide Office Memorandum dated 29th July 2015 has permitted CIL toexplore and exploit CBM from its areas under coal mining lease allotted to Coal IndiaLimited (CIL). Earlier MoC has appointed CMPDI as Nodal Agency for development of CMM inIndia. Successful implementation of the Demonstration Project at Moonidih (JhariaCoalfield) of BCCL has already proved the efficacy of the process and to expand the scopeof development of CBM in CIL areas. Further studies for "Assessment of CMMPotentiality in CIL Command Area" have been undertaken.

MoP&NG vide notification dated 3rd November 2015 has issued guidelines forexploration and exploitation of CBM by CIL and its subsidiaries on nomination basis fromcoal bearing areas for which they possess mining lease. It is under modification byMoP&NG considering applicability of the ORD Act and PNG Rules within coal miningleasehold areas. Assessment exercise for ECL command area and BCCL has been undertaken.These prospective CMM blocks are:

1) Raniganj CMM Block (ECL Area): An area of about 57 Sq.Km. under miningleaseholds of Sripur Satgram and Kunustoria Areas has been delineated for commercialdevelopment of CMM for which collateral activities have been initiated by CIL/CMPDI/ECL. Aprognosticated resource of CMM around 1.17 BCM may be available for extraction.Techno-economic studies have been undertaken by International Expert. Based on thisdetailed project report will be prepared.

2) Jharia CMM Block (BCCL Area): A block of about 25 Sq.Km. under miningleaseholds of Kapuria Moonidih Jarma Singra blocks has been delineated for commercialdevelopment. A prognosticated resource of CMM resource of around 4 BCM may be availablefor extraction. Techno-economic studies have been undertaken by International Expert.Based on this detailed project report will be prepared.

"Reservoir Modeling & Techno-Economic Feasibility Study for CommercialDevelopment of Coal Mine Methane (CMM)/Coalbed Methane (CBM)" within mining leaseholdareas for CMM blocks in (a) Raniganj Coalfield (ECL areas) and (b) Jharia Coalfield (BCCLareas) have been awarded to M/s Advance Resources International Inc. USA in January 2017and work is in progress.

It is proposed to consider available drilling technologies (vertical drillingdirectional horizontal & its combination on case to case basis) and completionmethods in such a way that the CBM operation can also be simultaneously taken up with thecoal mining operation within overlying seam.

3) Pre-drainage of methane at Moonidih mine (BCCL) Jharia Coalfield (CMM) Pre-drainageof methane at Moonidih mine (BCCL) in working Seam XVI has been proposed to recovermethane to enhance production and safety. Recovered gas will also be gainfully utilized.Expression of Interest (EoI) has been invited to identify suitable technology providerconsultancy organization having experience in development of CBM & CMM for successfulimplementation of gas drainage from gassy coal seams from concept to commissioning and itsutilization on Turn Key Basis i.e. Built Own Operate model or other applicable modelagainst which 15 EoIs were received which is under evaluation.

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

S&T project on "Capacity Building for Extraction of CMM Resource within CILCommand Areas being jointly implemented by CMPDI and CSIRO has been approved under CoalS&T project of MoC. The project is of 3 years duration with effect from 23rdMarch2016.

The Collaborative Understanding for execution of the Project has been signed betweenCSIRO and CMPDI on 22nd December 2016. CSIRO team visited CMPDI from 8th to 13th Feb.'17and again on 15th to 17th Mar'17. They will be visiting again in Jul'17. Desk study is inprogress.

16.5 Pr oject on VAM

A project proposal on mitigation/utilization of Ventilation Air Methane (VAM) to betaken up at Moonidih (Jharia coalfield) under CIL R&D and National Clean Energy Fund(NCEF) of Government of India is under consideration with CSIRO Australia and CMPDI asthe implementing agencies and BCCL as sub implementing agency. The project has beenapproved in principle by CIL(R&D) Board and will be taken up upon competent approvalof the Government.

16.6 CMM/CBM Clearing house in India

A CMM/CBM clearing house was established at CMPDI Ranchi under the aegis of Ministryof Coal and USEPA on 17th November 2008. The clearing house is functioning as the nodalagency for collection and sharing of information on CMM/CBM related data of the countryand help in the commercial development of CMM Projects in India by public/privateparticipation technological collaboration and bringing financial investmentopportunities.

The clearing house has been established with financial support from Coal India Ltd. onbehalf of Ministry of Coal and US EPA. The website of India Clearinghouse encompasses all the important information viz. EoInotifications newsletters in addition to information regarding opportunities existing fordevelopment of CMM VAM etc. After completion of initial three years term it was extendedfor another three years. USEPA has further granted extension of additional term i.e. threeyears till 2018.

An International Workshop on "Best Practices in Methane Drainage and Use in CoalMines" was jointly organized by CIL-CMPDI GMI-US EPA UNECE under aegis of GoI-MoCfrom 9thto 10th March 2017 at Ranchi. Presentations are available at


CBM Laboratory established at CMPDI has enhanced its capacity and added additionalfacility of Automatic Porosimeter cum Permeameter (Make Vinci Technologies France) togenerate producibility data on CBM recovery.

CBM Lab has carried out CBM specific data generation in 8 boreholes & Shale gasspecific data generation in 5 boreholes during 2016-17.

Relevant studies like Adsorption Isotherm (AI) studies for 51 numbers of coal samplesTotal Organic Carbon (ToC) analysis for 66 number of Shale samples have been completed.Further analysis of 1232 mine air samples received from different collieries of CCL and39 mine survey sample analysis of SECL have been completed and results submitted.


MoC has constituted Inter Ministerial Committee (IMC) for identification of areas forUCG on the line broadly similar to the existing policy of CBM development. Potentialblocks in coal and lignite were identified and considered in the IMC for the commercialdevelopment of UCG preferably by PSUs. Identified Coal blocks for UCG development are inWardha Valley Coalfield (Jogapur–Sirsi) Sohagpur Coalfield (Maiki(North)–Maiki-Merkhi Pathora Chainpa) Tatapani-Ramkola Coalfield (Reonti-West)Yellendu DipSCCL and Bandha Singrauli Main basin.

A consultant has been engaged for "Formulation of Bid Document & ModelContract Document for Development of UCG". Draft documents were submitted anddiscussed in 3rd and 4th IMC meetings. In the 4th IMC meeting held on 16th February 2017at MoC under Chairmanship of AS (Coal) the draft Bid Document and Model ContractDocuments were further deliberated and further modification were suggested. It was furtherconsidered that in view of amendment in MMDR Act 1957 which was under process severalregulatory changes/ legal amendments are required in lights of approved UCG policy whichhas been taken up by Ministry of Coal. Also on receipt of comments from IMC members themodified draft document will be re-drafted for deliberation in the next IMC meeting.

A Workshop was organized on ‘Challenges and opportunities for Development of UCG(Deep Seated Coal) in India' at Delhi on 23rd March 2017.


CMPDI has substantially improved the capacity of drilling during XI & XII planperiods. 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 7 Hi-tech Hydrostatic drills have been receivedand deployed in 2016-17.

19.1 Drilling Performance in 2016-17

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 in2016-17 out of which 64 were departmental drills.

As against the achievement of 2.09 lakh metre in 2007-08 CMPDI has achieved 9.94 lakhmeter in 2015-16 and11.26 lakh metre in 2016-17 through departmental resources andoutsourcing registering a Growth of 13% 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 1.045 lakh metre ofpromotional drilling has been carried out in Coal (0.490 lakh metre) & Lignite (0.555lakh metre) during 2016-17.

In 2016-17 CMPDI and its contractual agencies took up exploratory drilling in 122blocks/mines of 22 coalfields situated in 6 States. Out of 122 blocks/mines 35 wereNon-CIL/Captive blocks and 87 CIL blocks/mines. Departmental drills of CMPDI took upexploratory drilling in 56 blocks/mines whereas contractual agencies drilled in 66blocks/mines.

Due to non-availability of forest clearance work was stopped in 29 blocks. Due to lackof forest clearance and adverse law & order problem about 2.91 lakh metre of drillingcould not be carried out in departmental and outsourced blocks in 2016-17.

19.2 Geological Reports:

In 2016-17 16 Geological Reports were prepared on the basis of detailed explorationconducted in previous years. In addition 2 IGRs/Geological Notes were also prepared. Theprepared Geological Reports have brought about 4.6 billion tonnes of additional coalresources under ‘Measured(Proved) category".

Under Promotional Exploration Programme GSI and MECL have submitted 9 GeologicalReports on coal blocks estimating about 1.04 billion tonnes of coal resources in‘Indicated' &‘Inferred categories' above the specified thickness.

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 17 mining projects of BCCL CCL WCL SECL NCLECL and MCL were completed during 2016-17.

Total 53 nos. of Hydrogeological studies on GR/PR and others have been completed duringthis period for WCL SECL MCL ECL BCCL NCL and1 outside consultancy job for DVC.

Total 8 nos. of Hydrogeological reports on Location and Design of Piezometers have beenprepared during this period for ECL SECL and CCL.40 Piezometers (23 of Talcher Coalfieldsand 17 in IB Valley) have also been constructed under the technical supervision ofHydrogeologists of CMPDI. Long duration pumping test (1000 minutes cycle) and yield testwere conducted by CMPDI during 2016-17.

Hydro-geological studies in 6 projects of WCL SECL NCL and MCL have been carried outfor water supply arrangement to mines colonies and villages. In total 45 nos. ofGroundwater Applications have been prepared and submitted online for WCL.

CMPDI is also carrying out groundwater monitoring of MOEF cleared projects viz. 74 nos.of mines of WCL area and 15 nos. Cluster of mines in BCCL area. Water level monitoring inother areas of ECL CCL SECL NCL and MCL were also carried out.

19.4 Geophysical survey

Geophysical Logging: Boreholes drilled for exploratory drilling weregeophysically logged to get the in-situ information of different strata encountered in theboreholes. During the year 2016-17 a total of 201628 depth metre of geophysical logginghas been carried out in CIL and Non-CIL projects with multi-parametric geophysical loggingequipment. Out of this 102703 depth metre of logging was done by 6 departmentalgeophysical logging units and 98925 depth 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 289.65 km of Resistivityprofiling 214 Vertical

Electrical Sounding (VES) and 108 km of Magnetic survey have been carried out in2016-17. With 48-Channel signal enhancement Seismographs a total of 105 km of HighResolution Shallow Seismic (HRSS) survey has been carried out in Makri Barka block ofSingrauli Coalfield and Kewai & Beharab and blocks of Sohagpur Coalfield.

Reports: A total of 31 Geophysical reports have been submitted during the year2016-17. It includes nine reports on geophysical logging thirteen on resistivity surveysix on magnetic survey and three on HRSS survey.


During the year 2016-17 35 outside-CIL consultancy jobs were completed by CMPDI for 26organisations outside CIL. Some of the major clients/organizations are NMDC MOIL Ltd.MAHAGENCO Tata Steel DVC SAIL UCIL West Bengal Power Development Corporation Limited(WBPDCL) Chhattisgarh State Power Generation Company Limited (CSPGCL) etc.

Presently 25 outside-CIL consultancy jobs are being executed by CMPDI for 19organisations like OCPL NMDC NALCO NTPC Ltd. MAHAGENCO SAIL Orissa MiningCorporation (OMC) PFC Consulting Limited (PFCCL) Gujarat State Electricity CorporationLimited (GSECL)etc.

During the year 2016-17 43 outside-CIL consultancy jobs worth Rs 141.38 crores from 29organizations were procured by CMPDI. This is the highest ever value of jobs obtained in ayear by CMPDI.

One overseas assignment of "Preparation of Feasibility Study for Benga CoalProject of M/s ICVL in Tete Province of Mozambique" has also been obtained from NMDC.


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

The Research & Development (R&D) activity in Coal Sector is administeredthrough an Apex Body namely Standing Scientific Research Committee (SSRC) with Secretary(Coal) as its Chairman. The other members of this Apex Body include Chairman CIL CMDs ofCMPDI SCCL and NLCIL Director General of DGMS Directors of concerned CSIR Laboratoriesrepresentatives of Department of S&T NITI Aayog and educational institutions amongstothers. The main functions of SSRC are to plan program and budget and oversee theimplementations of research projects and seek application of the findings of the R&Dwork done.

The SSRC is assisted by a Technical sub-committee headed by CMD CMPDI. The committeedeals with research proposals related to production productivity and safety in coalmines coal beneficiation and utilization clean coal technologies protection ofenvironment and ecology etc.

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 fieldsscrutiny and processing the proposals for Government approval preparation of budgetestimates disbursement of fund monitoring the progress of implementation of theprojects etc.

Total no. of S&T projects taken up (till 31.3.2017) 390
Total no. of S&T projects completed (till 31.3.2017) 320

21.2 Ph ysical Performance

The status of Coal S&T projects during 2016-17 is as under:

i) Projects on-going as on 1.4.2016 18
ii) Projects approved/in-principle approved (sanction letter awaited) 03
iii) Projects completed during 2016-17 06
iv) Projects on-going as on 01.4.2017 12

Following S&T projects were approved (Sl.No.1) /in-principle approved (Sl.No. 2& 3)in 52nd meeting of SSRC held on 15.3.2017. Sanction letter awaited:

1. "Indigenous development of early warning radar system for predictingfailures/slope instabilities in open cast mines" - SAMEER Mumbai; ARDE Pune; CSRE;IIT Mumbai; CMPDI Ranchi and NCL Singrauli.

2. "Design of water network to optimize water consumption in coal washeries forremoval of impurities from coal" - IIT Roorkee; CMPDI Ranchi & CCL Ranchi;

3. "Electronification of ground water control and conveyor systems in mines"- NLC India Ltd. Neyveli and NITT Tamil Nadu.

Following Coal S&T projects were completed during 2016-17:

1. Development of tele robotics and remote operation technology for underground coalmines - CIMFR Durgapur; CIMFR Dhanbad and CMPDI Ranchi.

2. Development of indigenous catalyst through pilot scale studies of Coal-to-Liquid(CTL) conversion technology - CIMFR Dhanbad and CMPDI Ranchi.

3. Enhancing life of de-watering pipes in coal/lignite mines by prevention oferosion-corrosion with nano-crystalline surface Engineering Treatments

4. Blast design and fragmentation control-key to productivity - CIMFR Dhanbad

5. Design and development of truck mounted mobile coal sampler for instant coal ash& moisture analyser at site from railway Mechanics - CIMFR Dhanbad; SCCL Kothgudemand M/s Pranay Enterprises Pvt. Ltd. Hyderabad

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

21.3 Financial Status

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

(Rs in Crores)

2015 -16 2016 -17
RE Actual BE Actual
18.0 17.59 9.0 10.38

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 79 projects have been taken up under the fund of CIL R&D Board out ofwhich 61 projects have been completed till March 2017.

The status of CIL R&D Board Projects during 2016-17 is as follows:

i) Projects on-going as on 1.4.2016 10
ii) Projects approved during 2016-17 06
iii) Projects completed during 2016-17 03
iv) Projects on-going as on 01.4.2017 13

Following new R&D projects were approved during 2016-17:

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 - IIT-ISM Dhanbad; CIMFR Dhanbad; S&RDivision CIL(HQ) Kolkata and SIMTARS Australia.

2. Multiple layer trial blasting for better recovery with less diluted coal - IIT-ISMDhanbad and CMPDI Ranchi. Technical Participation - University of Queensland BrisbaneAustralia.

3. Studies on the Use of Coal and Petcoke as Fuel in the Cement Industry in India -IIT-ISM Dhanbad and CMPDI Ranchi.

4. Indigenous Development of Through-The-Earth (TTE) Two-Way Voice Communication Systemfor Underground Mines - IIT Bombay and CMPDI Ranchi.

5. Requirement of air in mine for Mass Production Technology - CMPDI Ranchi.

6. Development of a methodology for regional air quality monitoring in coalfield areausing satellite data and ground observations - CMPDI Ranchi and National Remote SensingCentre (NRSC) ISRO Hyderabad.

Following R&D projects were completed during 2016-17:

1. Demonstration of Coal Dry Beneficiation System using Radiometric Technique –CMPDI Ranchi and Ardee Hi-Tech Pvt. Ltd. Vishakhapatnam.

2. To find a methodology of safe liquidation in thick seams of Raniganj Coalfields:Design & Development & showcasing demonstrative trials at Khottadih colliery ECL- CIMFR Dhanbad& ECL Sanctoria.

3. Development of guidelines to predict distance between toe of the Shovel-Dumper dumpand that of Dragline dump with consideration of safety and economical design of bothShovel-Dumper dump and Dragline dump - BIT Mesra Ranchi.


CIL and its subsidiaries have utilized communication Information technology andimplemented many systems to achieve faster strategic decision making and optimalutilization of available resources for enhancing production and productivity. Systems havebeen introduced to minimize pilferage of coal and also to increase transparency for thesatisfaction of its stakeholders. In this regard following key initiatives have beentaken:

1. E-office application for CIL and its Subsidiaries has been introduced from 1stJuly'17. The project intends to enhance the business process management of theorganization and aims to improve production productivity and increase transparency byreplacing the old manual process with an electronic file system.

2. The subsidiaries have CoalNet and other Information systems in place for obligatoryaccounting finance payroll material management system and other business functions.

3. Coal India is also in the process of implementation of ERP. The detailed projectreport for the same is ready and steps are in progress for implementation.

4. GPS based Operator Independent Truck Dispatch System (OITDS) with high speed Dataand Voice communication is implemented in the targeted eleven Open cast projects tooptimize operation of HEMM to enhance the production and productivity of the mine.

5. GPS/GPRS based Vehicle Tracking System across all major mines of Coal India has beenimplemented at different subsidiaries along with Geo-fencing boom barriers and RF-IDsystem to monitor coal transportation and to minimize pilferages.

6. Electronic Surveillance through CCTV at weighbridges workshops coal dumps andother strategic locations has been implemented and process has been initiated to cover allprojects.

7. In order to improve coal dispatch electronic weighbridges are connected withCentral Servers of respective subsidiaries and initiatives have been taken forimplementing online generation of Challans/invoices.

8. E-Auction of coalE-procurement and Reverse auction systems for all goods works andservices have been implemented to speed up procurement process and to achieve transparencyin the system.

9. E-payment to employees and vendors E-filing of grievances are in operation toembark upon the business process through IT initiatives.

10. Corporate Mail Messaging System is in place for corporate email IDs to all theofficers of Coal India and its Subsidiaries.

11. In order to meet the demanding business process state-of-art IP based EPABX withsupport of convergent technology for voice and data Radio communication System and UG andcommunication system at different locations of Coal India and its subsidiary companies areoperational.

12. The Web Portal of Coal India is in place in English and Hindi encompassing thefeatures like Tender publication Vigilance corner Investor center Customer corner facilitate all stake holders.

13. Multi-Protocol Layered Switching (MPLS) based Video Conferencing between CILSubsidiaries CIL HQ CIL Office Delhi and MoC for enhancement of decision making processfor better production and productivity has been successfully implemented. CIL andsubsidiaries have also implemented Video Conferencing connectivity with External agenciesacross the globe.

14. CIL has implemented in-house online portals for Performance evaluation qualityanalysis Vigilance clearance Land Information System filing of Annual Property Returnthrough web enabled system. Mobile Apps have been developed for public dissemination ofinformation.

15. State–of-art Tier-III Data Center has been established in New building of thecorporate office of Coal India Limited for facilitating future IT applications.


23.1 Statutor y 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. The following are thestatutes that are applicable in coal mines for occupational health and safety (OHS).

SN Statute
1 The Mines Act -1952
2 The Mines Rules -1955
3 The Coal Mine Regulation -1957
4 The Mines Rescue Rules -1985
5 The Electricity Act- 2003
6 Central Electricity Authority (measures related to safety & supply) Regulations - 2010
7 The Mines Vocational Training Rules -1966
8 The Mines Crche Rules -1966
9 Indian Explosive Act 1884
10 The Explosive Rules - 2008
11 Indian Boiler Act 1923
12 Mines Maternity Benefit Act & Rules -1963
13 The Workmen Compensation Act - 2009
14 The Factories Act - 1948 Chapter -III & IV

23.2 Safety Policy of CIL: Safety is always given prime importance in theoperations of CIL as embodied in the mission statement of CIL. CIL has formulated awell-defined Safety Policy for ensuring safety in the mines and implementation of the sameis closely monitored at several levels.

1) Operations 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 joint consultationson safety matters and secure their motivation and commitment in Safety Management;

7) Prepare annual Safety Plan and long term Safety Plan at the beginning of 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's SafetyPolicy.

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

Analysis of Accident Statistics in CIL - Accidents statistics is the relativeindicator for safety status in mines. Over the years the safety performance of CIL interms of accident has improved significantly.

This improvement in mine safety in CIL is attributed to the following contributingfactors:

• Collective commitment and synergetic collaboration of the Management Employeesthe regulator (DGMS) and Trade Unions.

• Use of state-of-the-art technology in the field of Mining Methods MiningMachineries and Safety Monitoring Mechanism.

• Continuous improvement in knowledge skill and responsiveness of workforcethrough imparting quality safety training and relentless safety awareness drives.

• Constant vigil round-the-clock supervision and assistances from variousquarters.

Salient features of continuous and sustained improvement in CIL's safety performance isdisclosed in Annexure 18

23.4 Major Activities for Safety & Rescue Division of CIL:

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

2. Prima-facie fact finding enquiry into fatal accidents and major incidences such asmine fire subsidence inrush of water slope failure explosion etc.

3. Organizing meeting of CIL Safety Board and monitoring recommendations / suggestionsmade during meeting.

4. Framing of internal technical circulars / guidelines related to safety issues andmonitoring implementation thereof.

5. Maintenance of accidents / major incidents statistics Database.

6. Publication of Safety Bulletin for disseminating and sharing of knowledge in orderto promote safety awareness and inculcate better safety culture.

7. Framing reply of different coal mine safety related parliamentary questionsincluding queries raised by different standing committees such as standing committee onSteel & Coal standing committee on labour as well as questions raised by COPU MOCCA&G and VIPs.

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

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

23.5 Measures taken for improvement of safety in 2016-17

To improve safety standard CIL and its subsidiaries have vigorously pursued severalmeasures in the year 2016 along with on-going safety related initiatives apart fromcompliance of statutory requirements for safety which are given below.

1. Internal Safety Organization (ISO): Continuous review of safety status of mines isbeing done by the multi-disciplinary Internal Safety Organization (ISO).

2. Training for preparation of Risk Assessment based SMP: Executives who have beentrained by SIMTARS Australia are engaged for imparting training and upgrading theknowledge of mine level executives as well as members of safety committee of mine toidentify the hazards and evaluate the associated risks in the mines and prepare Riskassessment based Safety Management Plans (SMPs).

3. Preparation and Implementation of Risk Assessment based Safety Management Plan(SMP): The Risk assessment based Safety Management Plans (SMPs) have been prepared for allmines of CIL and control measures suggested thereof in SMPs are being implemented. It is acontinuous ongoing process.

4. Standard Operating Procedure (SOP): Risk assessment based site specific StandardOperating Procedures (SOP) are formulated and being implemented for various mining andallied operations.

5. Safety Audit of all producing / operative mines have been conducted bymulti-disciplinary inter-company teams.

6. Assessment of OB dumps have been conducted by using expertise of CMPDIL andmulti-disciplinary ISO teams in most of opencast mines.

7. Guidelines on corrective measures: After analysis of fatal accidents which occurredat different point of time in 2016 several directives / guidelines on corrective measuresto be taken for prevention of recurrence of similar type of accidents in future have beenissued by the Safety & Rescue Division of CIL.

8. Adoption of the state-of-the art technology in suitable geo-mining locales.

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

o Deployment of more number of Surface Miners to eliminate blasting operation in OCPs.

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

o Mechanization of UG drilling.

o Phasing out manual loading in UG mines.

9. Adoption of the state-of-the art mechanism for Strata Management

o Scientifically determined Rock Mass Rating (RMR) based Support System.

o Strata Control Cell for monitoring efficacy of strata support system.

o Roof bolting by using mechanized Drilling for Roof Bolting.

o Use of Resin capsules in place of Cement capsules.

o Use of modern Strata Monitoring Instruments.

o Imparting quality training to support crews & front-line mine officials.

10. Mechanism for monitoring of mine environment:

o Detection of mine gases by using Methanometer CO-detector Multi-gas detector etc.

o Continuous monitoring of mine environment by installing Environmental Tele MonitoringSystem (ETMS) & Local Methane Detectors (LMD) etc.

o Regular Mine Air Sampling and Analysis by Gas Chromatograph.

o Personal Dust Sampler (PDS).

o Use of Continuous Ambient Air Quality Monitoring System (CAAQMS) in large OCPs toassess the ambient dust concentration and take suitable mitigation measures.

11. Underground Mine Ventilation:

o Supply of sufficient quantity air by installing suitable Main Mechanical Ventilator(Surface) Auxiliary Fans Booster fans (UG) ventilation stoppings air Crossings etc.

o Conducting Pressure-Quantity Survey on regular basis. o Using Modern gadgets for airmeasurement. 12. Water Danger Management:

o Conducting Check Survey to eliminate errors in mine survey.

o Preparation and maintenance of seam-wise Water Danger Plan.

o Preparation and implementation of Monsoon Preparation Plan.

o Adequate Pumping Facilities & adequate capacity of sumps.

o Liaison with the State Meteorological Dept. & Dam Authority if any.

o Construction of embankments with proper design against water bodies.

o Advance borehole for locating water body in underground.

o Inter-mine joint survey between adjoining mines to prove inter-mine barriers toprevent transference of danger.

13. Steps for prevention accidents in OCPs:

o Formulation and implementation of Mine-specific Traffic Rules.

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

o Training of Contractor's Workers involved in contractual jobs.

o Training on Simulators to dumper operators.

o Lighting arrangement using high mast towers for increasing level of illumination.

o Eco-friendly Surface Miners for blast free mining and avoidance of associated risks.

o Dumpers fitted with Proximity Warning Devices Rear view mirrors and cameraAudio-Visual Alarm (AVA) Automatic Fire Detection & Suppression system etc.

o Ergonomically designed seats & AC Cabins for operators' comfort.

o Wet Drilling & water Sprinklers for dust suppression.

o Use of Shock Tubes & Electronic Detonators for control of ground vibration &fly rocks.

o GPS based Operator Independent Truck Dispatch System (OITDS) in large OCPs fortracking movement of HEMMs inside OC mine.

14. Mine Safety Inspection:

o Round-the-clock Supervision of all mining operations by adequate number of competent& statutory Supervisors and mine Officials.

o Periodic mine Inspections by Head Quarter and

Area level senior officials.

o Surprise back shift mine Inspections by mine and area level officials.

o Regular Inspection by Workmen Inspectors appointed in each mine.

o Regular mine Inspection by officials of Internal Safety Organization.

15. Safety Training:

o Risk Management and preparation of "Safety Management Plan".

o Initial and Refresher training & On-the-Job Training as per statute.

o Training on Simulators to dumper operators.

o Skill up-gradation of frontline mining officials.

o Sensitization of all employees including members of Safety Committees and contractualworkers.

16. Emergency Response System:

o Emergency Action Plans prepared for each mine.

o Mock Rehearsals for examining the efficacy of Emergency Action Plan.

o Demarcating Emergency Escape Routes in belowground.

o Check list prepared for dealing with an emergency in mine.

o Flow Chart prepared for sending information regarding crisis / disaster in mines fromsite of accident to the Ministry of Coal New Delhi.

24. Mine Rescue Services in CIL:

• CIL is maintaining well established and structured organizations comprising of 6Mine Rescue Stations 14 Rescue Rooms-with-Refresher Training facilities (RRRT) and 17Rescue Rooms to cater the need of mine rescue services as per statute.

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

• All mine rescue organizations are manned by adequate numbers of Rescue TrainedPersonnel (RTP)s as per the MRR-1985.

• All RTPs are being periodically retrained to conduct rescue operations in hothumid and irrespirable atmospheres in modern training galleries as well as challengingconditions in underground 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 given in Annexure 18.

25. Safety Monitoring 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 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 • Bipartite/Tripartite safety Committee Meeting
HQ Level • Area Safety Officers' Coordination Meeting
• Inspections by ISO Officials
At CIL (HQ) / Corporate • CIL Safety Board.
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 140490 employees have been trained during 2016-17. Out ofwhich 18757 were executives and 121733 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 Centers and also102 VT Centers 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 skill of the employeeskeeping in mind the need of Industry. Details of in-house Training imparted during 2016-17are listed below:-

Training Short Training Workshop/ Seminar Total
Executive 5060 6877 1800 13737
Non- executive 98567 21837 379 120783
Total 103627 28714 2179 134520

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 Short Training Workshop/ Seminar Total
Executive 1684 2532 683 4899
Non- 690 113 147 950
Total 2374 2645 830 5849

iii) Training Abroad

Coal India has sent 121 employees to different countries from all the subsidiarycompanies and CIL (HQ) during the year 2016-17.

Training W/Shop/ Seminar/ Conference Total
Executive 120 1 121
Non-executive 0 0 0
Total 120 1 121

iv) Initiatives

• CIL has been recruiting fresh and dynamic young bloods in different disciplinesfor the last few years consistently. A special attention has been given in grooming theseyoung and energetic persons in their respective fields throughout the year. In addition tothe introductory concept on Coal Industry they have been trained on basic ManagementTechniques (MAP) and also in their respective Technical fields (TAP) through regularcourses organized at 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 disciplines 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 168 AMs/MTs was organized at Indian School of Mines Dhanbadthe premier Mining Institute of our country during the year 2016-17.

• Training program on General Management for Middle level Executives of Coal IndiaLimited for two weeks is done by making a tie up with Administrative College of India(ASCI) Hyderabad to develop Executives to take up higher responsibilities and occupysenior positions.189 Participants have attended the course for the financial year 2016-17.

• Training program on Executive Development for E4/ E5 executives of Coal IndiaLimited is done by making a tie up with Indian Institute of Management Lucknow. 126Participants have attended the course for the financial year 2016-17.

• One Batch consisting of 15 members comprising Mining E&M are trained in AGHUniversity Poland.

• A Tripartite MoU has been entered into among National Skill DevelopmentFund(NSDF) National Skill Development Corporation(NSDC) and CIL on 3rd May2015 toprovide training and undertake Recognition of Prior Learning to around 2.7 Lakh personsover a period of 2 years as per National Skills Qualification Framework in CIL'soperational areas and neighboring regions.

• For the Year 2016-17 Under RPL(Recognition of Prior Learning) 38833 employeesare trained .

26.3 Recruitment

During FY 2016-17 38 Medical Specialists and Medical officers joined the Company. CILalso inducted fresh talent into the organization at the entry level 438 ManagementTrainees who are selected through campuses have joined. They have been imparted inductiontraining and posted to different subsidiaries based on manpower requirement.

Further CIL has also promoted 175 non-executives level employees into Executive cadrethrough departmental selection/promotion process.

27. Manpower

27.1 The total manpower of the Company including its subsidiaries as on 31.03.2017 is310016 against 322404 as on 31.03.2016. Subsidiary company wise position of manpower isdisclosed in 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 total manpower of CIL and its SubsidiaryCompanies as on 01.01.2015 01.01.2016 and 01.04.2017 is given below:-

As on Manpower Total Scheduled Caste

Scheduled Tribe

Nos. Percentage Nos. Percentage
1.1.2015 336675 73527 21.84 41212 12.24
1.1.2016 326032 70502 21.62 39669 12.17
1.4.2017 310016 70513 22.74 39721 12.81


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 2016-17 a one day Nation-wide General Strike was called by Four Central TradeUnions on 2nd September 2016 due to which company lost 83368 Man-days and 443834 tonnesof production. There were total 5 instances of Bandh called by regional parties in thearea of operation of subsidiary companies viz. MCL CCL & CMPDIL where normal workingwas affected.

Subsidiary wise details of strikes man-days lost and production lost and otherincidents for the year 2015-16 and 2016-17 are furnished in Annexure 19.




At the time of Nationalisation there were only 118366 houses including sub-standardhouses. The availability of these houses has increased to 397379. The percentage ofhousing 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 1961547 has been covered under watersupply scheme.


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

There are 80 Hospitals with 4938 Beds 376 Dispensaries 541 Ambulance and 1150 Doctorsincluding Specialists in CIL and its subsidiaries to provide medical services to theemployees. Besides 05 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 provided to the peoples residing in and around minespremises of the subsidiary companies of CIL.


The subsidiary companies of CIL have been providing financial assistance by way ofdeficit grant and infrastructure facilities to certain renowned schools viz. 43 nos.- DAVPublic Schools 14 Nos.- KendriyaVidyalaya 01 No.- Delhi Public School 02 Nos.Saraswati Vidya Mandir 01No. Ram Krishna Vivekanand Vidyapith 01No. Vivekanand KendriyaVidyalaya to impart quality education.

In addition to above grant - in –aid is provided to Privately Managed school inECL BCCL & CCL to encourage education in the operational areas of subsidiaries.

Coal India Scholarship Scheme

In order to encourage the Sons and Daughters of the employees of Coal India Limitedtwo types of Scholarship viz. Merit and General Scholarship are being provided everyyear under prescribed terms and conditions.

In total 7170 scholarships were awarded and tuition fees & hostel charges werereimbursed to 1142 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 in Annexure 20.

5) Statutory Welfare Measures:-

In accordance with the provisions of the Mines Act 1952 and Rules and Regulationsframed there-under subsidiaries of Coal India Limited are maintaining various statutorywelfare facilities for the coal miners such as Canteen Rest Shelters and Pit Head Bathsetc.

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 Co-operative Credit Societies are alsofunctioning in the Coal Companies.

7) Banking Facilities:-

The Management of Coal Companies are providing infrastructure facilities to the 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 427 BankBranches and 48 Extension Counters and they are also encouraged to practice thrift for thebenefit of their families.

8) Sports:-

Structured sports policy of CIL and its subsidiaries was approved by CIL Board its296th Meeting held on 25th March2013. As per the Sports Policy Coal India SportsPromotion Association (CISPA) has been registered under West Bengal Societies RegistrationAct 1961. CISPA has undertaken several sports activities at National Level andInternational Level.

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 subsidiary companies. Each WIPS Cell is headed by a Coordinatorwho plans and executes various activities of the Forum with the help of a duly appointedExecutive Committee. The company extends active support to the various activities of WIPScomprising of welfare activities training & development activities seminarscultural programme industrial awareness visits health awareness programme etc for theWIPS members women workers their families and society at large.

Coal India Ltd and its subsidiary companies are extending full fledged support andpatronage to the National Conference of Forum of WIPS held every year in February. Inrecent years the WIPS cell have done commendable work in reaching out to the grass rootlevel women employees empowering them by suggesting gainful redeployment training anduplifting their morale by recognizing outstanding achievement recognizing and honouringthe exceptional talent.

10)Special Cash Award:-

During 2016-17 an amount of Rs 146000/-has been provided as Special Cash Award to 26meritorious Sons and Daughters of employees of CIL(Hqrs.) Kolkata Desk Offices ofsubsidiary companies @`7000/- for 08 (Eight) students who have secured 90% or above marksin the Class-XII Board level examination and @`5000/- for 18(Eighteen) 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 following places. (a) Puri (b) Digha (c)Goa (d) Manali (e) Katra (f) Ajmer (g) Darjeeling (h) Haridwar

Eff orts are on to include more holiday home in important tourist spots in the country.

12) CIL Welfare Board Meeting:-

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

The members of CIL welfare board comprising of Central Trade Union representative andrepresentation of Managements meet regularly to discuss on the welfare measures and reviewthe implantation of different welfare scheme.


Plantation and Green belt are developed through extensive tree plantation programmeevery year by the subsidiaries of Coal India Ltd. Avenue plantation plantation on the OBdumps plantation around mines residential colonies and available land is undertaken inthe existing as well as the new projects.

The subsidiaries of CIL have planted around 94.015 million of trees covering an areaover 37557.458 Ha. till March 2017.


Keeping with the spirit of the constitution of India Coal

India Limited continued its efforts to propagate and spread the progressive use ofOfficial Language Hindi during the period under review. The management of Coal IndiaLimited is committed to implement the provisions of the Official Languages Act Rules andRegulations. For this purpose periodical meetings and reviews are done regularly by thetop officials.

A brief description of the works done during the year under review towardsimplementation of Rajbhasha is appended below:-

Workshops were organized regularly with a view to create working atmosphere ofRajbhasha and to remove hesitation of officers & employees to work in Hindi. Duringthe year large number of officers &employees participated in such workshops torefresh their knowledge of Hindi words Hindi noting & drafting in regular Officialworks.

In order to promote Hindi as Official Language a "Grand Hasya Kavi Sammelan"was organized on 30.04.2016 in the auditorium of Coal India Ltd. Kolkata where a largenumber of audiences were present.

With the aim to promote Official language and to foster interest in Official Languageamong officers and employees Publication of Hindi Magazine namely "Koyala Darpan"has been started from Coal India headquarters. During the year 2016-17 its second &third issue has been published. The purpose of publishing the magazine is to provide aplatform to the creative potential of employees and to inform all about the activities ofCoal India.

the other With a view to create conducive atmosphere for working in Hindi andaccelerating the use of Hindi as Official Language among officials ‘Hindi Fortnight'was observed in all offices of Coal India Ltd. in the month of September 2016. During theHindi Fortnight various Hindi Competitions such as Hindi noting and drafting Hindi Selfwriting Hindi Dictation Hindi Translation Hindi typing and Lectures competition wereorganized where a large numbers of employees participated enthusiastically. The winnerswere honoured with Cash Awards & Certificates. This creates a consciousness amongemployees to use Rajbhasha in official Work. It is notable that Regional Sales Office CILsituated at different cities were granted sufficient fund as per their sizes to celebrateHindi Diwas & Hindi week/fortnight as per the practice.

Supportive literature and dictionaries were provided to the departments on theirdemand. ‘Today's Word' and ‘Today's Thought' are displayed on all the signage atthe New Office Complex Rajarhat.

Coal India always lays emphasis on imparting training of Hindi Language under Hinditeaching scheme of Govt. of India by nominating the employees in Hindi Praveen &Pragya classes. For the session starting from January 2017 sixteen (16) employees havebeen nominated for attaining working knowledge of Hindi. Further to promote Hindi numberof employees were also nominated in Hindi Workshop/Training camps organized by certainprestigious institutions.

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

A) 1st Prize of TOLIC(PSUs) Kolkata: Under the Rajbhasha Award Scheme of theGovt. of India Honourable Governor of West Bengal Shri Kesharinath Tripathi awarded TOLIC(PSUs) Kolkata Sheild - 1st Prize to Coal India Ltd. in the Corporate Offices category forthe best implementation of Official Language Policy of the Union on 11.8.2016.

B) Award to CIL's Hindi magazine ‘KoyalaDarpan':On 3rdJune 2016 Coal Indiaheadquarter's Hindi magazine ‘Koyala Darpan' was awarded first prize in the categoryfor the best Hindi magazine by Rajbhasha Seva Sanshthan New Delhi.

Inspection of offices is a part of the implementation. During the year Officials ofRajbhasha department CIL (HQ) reviewed the status of implementation of the OfficialLanguage of RSO Delhi & Lucknow and suggested remedial measures.

To observe the status of the use of Hindi in official work and to ensure that theprovisions of Official Languages Act and Rules made there under are properly compliedwith the 3rd subcommittee of Parliament on official Language inspected Delhi officeRegional Sales Office Jaipur & Ahmedabad as well as Coal India Headquarter Kolkata.


The anti-corruption activities in CIL and its Subsidiary Companies have beeninstitutionalized by setting up of Vigilance Departments headed by a Chief VigilanceOfficer (CVO) appointed by the Govt. of India in consultation with Central VigilanceCommission (CVC) on tenure basis drawn from various government services.

During the year 2016-17 49 Intensive Examination of Works/ Contracts (Major works)were undertaken by CIL(HQ) and its subsidiary companies. In addition379 Surprise checkswere carried out. Besides 68 Departmental Inquiries were disposed of which resulted inpunitive action against 185 officials. Such examinations/investigations have resulted intoinitiation of various system improvement measures.

As per the directives of Central Vigilance Commission Vigilance Awareness Week –2016 has been observed in Coal India Limited IICM- Ranchi North EasternCoalfields-Margherita & Regional Sales Offices across the country besides all theSubsidiary Companies w.e.f. 31.10.2016 TO 05.11.2016 emphasizing the theme of "Publicparticipation in Promoting Integrity and Eradicating Corruption".

During the week in order to generate awareness educate and discuss transparency amongofficials/stake holders as well as general public to arrest the root cause & threat ofcorruption and to promote good governance various activities were organized.

1. Inauguration -

The Vigilance Awareness Week was commenced with the administration of Pledge to theemployees by Chairman CIL while inaugurating the week on 31st October 2016.

2. Wide Publicity -

1000 pamphlets distributed to CIL HQ Employees Visitors ContractualWorkers/ Drivers and Vendors with Vigilance Message and they were requested to takee-pledge. Throughout the week 20 e-posters displayed in all the digital signage in CIL HQ.

• The posters / banners / pamphlet / canter / 2D gate specially designed forVAW-2016 and events organised during the week has been uploaded in Company's officialFacebook page. Also the same has been posted in CVO CIL and CIL official twitter account.

40 banners of 6 ftx 4 ft has been displayed in prominent places acrossKolkata.

One large size 16 ft x 10 ft banner has been displayed in busy VIP Road withmessage and request the citizens to take e-pledge.

100 Posters with Anti-corruption and Vigilance Awareness messagedisplayed across Kolkata in public places.

Through News Papers in 3000 Households Shops and Offices in Salt-lakeand Ultadanga Area. 6000 Nos distributed through Canter Moving prominent placeswith signature campaign from 02.11.2016 to 05.11.2016 and Flash mob performing skit onAnti-Corruption message on 04.11.2016.

3. Employees Competitions –



iii. Quiz Competition for Employees of CIL HQ on issues in Vigilance CVC andother Anti-corruption Laws Policies manuals and guidelines of CIL.

iv. System Improvement/New Initiatives Competition for Employees of CIL HQ.

4. Competitions for Wards and Spouses of Employees –

i. Elocution Competition for wards of Employees of CIL HQ studying in Class IXto X on topic "Corruption can be tackled only through improving ethical values insociety"

ii. Essay Competition for Spouses of Employees of CIL HQ on TOPIC- "ROLE OFFAMILY IN ENHANCING ETHICAL STANDARDS IN SOCIETY"

5. Training Program for Junior Level Managers of CIL - A one day orientationprogram for newly recruited Junior Level Managers of CIL was organized in two batchesfocusing on Vigilance Administration in PSUs Conduct Discipline & Appeal Rules ofCIL and Common Irregularities.

6. Workshops / Sensitization programmes-500 Vigilance Case Studies Vol-2unveiled during the Vigilance Awareness Week Valedictory Function for distribution acrossCIL & Subsidiaries.

7. Organisation website

Organisation website has been used to propagate the messages of CVC and encouragingcitizens to take e-pledge.

8. Stake Holders Meet –

1. Stake Holders Meet organised with Vendors and Customers on 03.11.2016 at CIL HQ toredress their issue.

2. Stake Holder's Online feeback survey conducted through CIL Website.

9. Workshops / Sensitization programmes

1 . Speech of Sadguru of Isha Foundation Coimbatore on topic " InnerManagement " organized at CIL HQ.

2 Seminar. on CVC theme " Public participation in Promoting Integrityand Eradicating Corruption" Concluding Ceremony and Prize distribution towinners of event organized during the week on 10.11.2016.

Preventive Vigilance/ System Improvement

1. Personnel Division has been advised to create a central repository of service filesof executives.

2. It is suggested to get the EIS database & applications tested audited &certified by reputed certification agency for security & complete database management.

3. CIL may explore the possibility to tie-up with reputed hospitals/Medical Institutesto provide HAT training & qualification & the duration of the training should atleast six months duration.

4. Online transfer of EMD amount directly to the dedicated account ofArea/Subsidiary/CIL HQ through E-tender portal and automatic refund of EMD to unsuccessfulbidders. Alternatively transfer of EMD amount through RTGS/NEFT to dedicated account ofArea/Subsidiary/CIL HQ and necessary information may be filled such as transaction-idtransaction date and EMD amount in the corresponding field of EMD.

? System improvement suggestions:

System improvement suggestions were made in many areas: a. DPC for promotion b.Procurement of explosives c. Testing of explosives

d. Use of 3D TLS for survey of OB & Coal with phasing out of Theodolite.

e. Purchase Manual

f. Use of UAV & space technology for prevention of Coal pilferage & illegalmining and monitoring of environment plantation vegetation & water bodies.

? System Improvement Studies - Studies were taken in the 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.


Employee received remuneration either equal to or in excess of limits prescribed underRule 5(2) of Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014during 2016-17 is given in Annexure 21. Details of Rule 5(1) of Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 on disclosure in theBoard Report with reference to remuneration of Managerial Personnel of Top 10 employees isannexed to the Report. (Annexure 21).


Shri S. Bhattacharya continued as Chairman cum Managing Director throughout the year.Shri C.K. Dey Director (Finance) and Shri S.N.Prasad Director(Marketing) were on theBoard throughout the year. Shri S. Saran CMD CMPDIL has assumed the additional charge ofDirector(Technical) CIL from 31.10.2016 due to untimely demise of N. Kumar formerDirector(Technical) CIL on 18.10.2016. Government of India has terminated the services ofShri R.Mohan Das w.e.f. 31.03.2017 and Shri S N Prasad has assumed the additional chargeof Director (Personnel) from that date & held the charge till 19.06.17 thereafter SriR.R.Mishra CMD WCL took over the charge from him.

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 till05.08.2016 and 20.06.2016 respectively. Shri R P Gupta Joint Secretary MoC was on boardfrom 05.08.2016 till 29.08.2016. Shri R.K.Sinha Joint Secretary MoC and Shri VivekBharadwaj Joint Secretary MoC were appointed w.e.f 05.08.2016 and 30.08.2016respectively and continued throughout the year. Mrs Reena Sinha Puri JS &FA MOC wasappointed as official part time Director vice Sri Vivek Bharadwaj from 9th Jun17.

Ms. Loretta Mary Vas Dr S.B. Agnihotri Dr D.C. Panigrahi Dr. Khanindra Pathak andShri Vinod Jain were appointed as Independent Directors on the Board on 17/11/15 andcontinued throughout the year.

Shr i R.R. Mishra CMD WCL and Shri S. Saran CMD continued throughout the year aspermanent invitees. Shri A.K.Gupta Addl. Member (Traffic transportation) Railway Boardhas been appointed as permanent invitee from 05.08.2016 and continued throughout the year.

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 14 meetings during the year 2016-17.

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 re-constituted bythe Board in its 323rd Meeting held on 6th Jan'2016 consisted of four IndependentDirectors one Functional Director(additional charge) one Government Nominee Director andone permanent invitee. Details are disclosed in Corporate Governance Report under pointnumber 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 2016-17 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 matters provided under sub-section (3) of section 178.

MCA vide Notification dated 5th June'2015 has exempted the above for Governmentcompanies.

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

MCA vide Notification dated 5th June'2015 has exempted the above for directors ofGovernment 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 for Governmentcompanies.

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 holding company andplaced before the shareholders at the general meeting for approval. However theremuneration paid to Key Managerial Personnel is being disclosed separately in point no VIof 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 Disclosure Requirement) Regulations2015 the details of the familiarization programmes is to be disclosed on the website ofthe company. The same is disclosed on company's website. In addition IndependentDirectors were nominated to attend the trainings programmes organized by SCOPE and DPE.

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) are working at every subsidiaryand office of Coal India Limited to redress complaints regarding sexual harassment. Allwomen employees (permanent contractual temporary trainees) are covered under the saidpolicy.

No sexual harassment complaint was received during the year 2016-17.


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

It is based on such confirmation obtained from eight Indian subsidiaries of CIL viz:Eastern Coalfields Limited Bharat Coking Coal Limited Central Coalfields LimitedNorthern Coalfields Limited Western Coalfields Limited Mahanadi Coalfields Limited(consolidated) South Eastern Coalfields Limited (consolidated) and Central Mine Planning& Design Institute Limited. However for the overseas subsidiary viz. Coal IndiaAfricana Limitada which was incorporated under Mozambique Commercial Code and for JointVentures viz. International Coal Ventures Private Limited NTPC Urja Private LimitedHindustan Urvarak & Rasayan Limited and Talcher Fertilizers Limited where CIL is notthe 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; and

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 that such controls are adequateand were operating effectively during the year ended 31st March'2017.

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 first proviso tosub-section(3) of section 129 of Companies Act2013 is enclosed as AOC 1 in Annexure 24.In terms of General Circular No.2/2011 dated 8th Feb 2011 from Ministry of CorporateAffairs the Annual Accounts of subsidiary companies shall be made available to theshareholders seeking such information.


The Cost Audit of your company for the year 2015-16 was conducted by M/s Musib & Coand the Cost Audit Report was approved by the Board of Directors in their 331st meetingheld on 3rd August 2016. The Cost Audit Report did not contain any adverseobservation/comment or qualification from the Cost Auditor. The above report was filed inXBRL mode with MCA on 29th Aug'16.

M/s. Balwinder & Associates was appointed as Cost auditor for CIL Standalonefor the year 2016-17. E-form CRA-2 has been filed with MCA portal vide SRN G10080166 dated27th Aug'16


In pursuance to Section 204 of Companies Act 2013 company had conducted SecretarialAudit for the year 2016-17 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 in Annexure 25.


A Risk Management Charter has been approved by the CIL

Board. It is being implemented in CIL HQ and its Subsidiaries. Risk Mitigation Measuresare under preparation.


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

1. Corporate Social Responsibility Policy: Act_2013_05022016.pdf

2 . Vigil Mechanism:

3. P olicy for determining Material Subsidiary: SUBSIDIARIES_21032015.pdf

4. Related Party Transaction Policy:'_01122014(1).


5. P olicy on determination of Materiality SEBI(LODR) Regulations2015

6. P olicy on Preservation of documents Archival Policy under SEBI(LODR) Regulations2015 including_Archival_Policy_under_SEBI_LODR_Regulations_2015_17052017.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 dividend amountis less than seven years no amount has been transferred to IEPF.

4. No Secretarial Statutory Auditor resigned during the year 2016-17.

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) otherthan those which are reportable to the Central Government. :

No such reported frauds as per Audit Report of Standalone as well as ConsolidatedAccounts.

2 . Material changes and commitments if any affecting the financial position ofthe company which have occurred between the end of the FY and the date of the report :

No such material changes and commitments occurred between the end of the Financial Yearand the date of the report which may affect the Standalone as well as under consolidatedfinancial position of the company.

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 2016-17 a Joint Venture Hindustan Urvarak & RasayanLimited was incorporated.. The details of the subsidiaries Joint Ventures or associateshave been furnished under form AOC-1.During the financial year no subsidiaries JointVentures or associates 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 Statutory 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 2016-17 vis--vis 2015-16 (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 2017 including Report on the Internal Financial Controls under Clause (i) ofSubsection 3 of Section 143 of the Companies Act 2013 ("the Act")[Annexure3(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 2017 including Report on the Internal Financial Controls under Clause (i) ofSubsection 3 of Section 143 of the Companies Act 2013 ("the Act")[Annexure4(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 2016-17. (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 Coking & Non-coking production Production from undergroundand opencast mines. (Annexure 13).

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) and Rule 5(2) of Companies (Appointment andRemuneration of Managerial 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 2017. (Annexure 24)

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

Kolkata 12th August 2017

S. Bhattacharya


(DIN: 00423572)