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Coal India Ltd.

BSE: 533278 Sector: Metals & Mining
NSE: COALINDIA ISIN Code: INE522F01014
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VOLUME 2182286
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Coal India Ltd. (COALINDIA) - Director Report

Company director report

To

The Members

Coal India Limited

Ladies and Gentlemen

On behalf of the Board of Directors I have great pleasure in presenting to you the 46thAnnual Report of Coal India Limited (CIL) and Audited Accounts for the year ended 31stMarch 2020 together with the reports of Statutory Auditors and Comptroller and AuditorGeneral of India thereon.

Coal India Limited (CIL) is a 'Maharatna' company under the Ministry of CoalGovernment of India with headquarters at Kolkata West Bengal. CIL is the single largestcoal producing company in the world and one of the largest corporate employers withmanpower of 272445 (as on 1st April 2020). CIL operates through its subsidiariesin 84 mining areas spread over eight (8) provincial states of India. Coal India Limitedhas 352 mines (as on 1st April 2020) of which 158 are underground 174 opencast and 20mixed mines. CIL further operates 12 coal washeries (10 coking coal and 2 non-cokingcoal) and also manages other establishments like workshops hospitals and so on. CIL has26 training Institutes. Indian Institute of Coal Management (IICM) is an excellenttraining centre that operates under CIL and imparts multidisciplinary managementdevelopment programmes to the executives. Coal India's major consumers are Power and Steelsectors. Others include cement fertilizer brick kilns and a host of other industries.

CIL has eight fully owned Indian subsidiary companies viz. Eastern Coalfields Limited(ECL) Bharat Coking Coal Limited (BCCL) Central Coalfields Limited(CCL)WesternCoalfields Limited (WCL)South Eastern Coalfields Limited (SECL)Northern CoalfieldsLimited (NCL)Mahanadi Coalfields Limited (MCL) and Central Mine Planning & DesignInstitute Limited (CMPDIL).In addition CIL has a foreign subsidiary in Mozambique namelyCoal India Africana Limitada (CIAL).

The mines in Assam i.e. North Eastern Coalfields (NEC) is managed directly by CIL. Theoperations are temporarily suspended at NEC with effect from 3rd June 2020 due tonon-availability of forest and other statutory clearances.

Mahanadi Coalfields Limited a subsidiary of Coal India Ltd is having four (4)Subsidiaries SECL has two (2) Subsidiaries and CCL has one (1) subsidiary.

1. STATE OF COMPANY AFFAIRS

1. CIL produced 602.14 MT during 2019-20 under very challenging conditions and for thesecond successive year produced more than 600 MT.

2. SECL achieved over 150 MT production for the second successive year NCLjoined SECL& MCL to achieve more than 100 MT for the second successive year WCL and ECLjoinedCCL to achieve more than 50 MT for the second successive year.

3. For eliminating transportation of coal by road from pit head to rail dispatch point35 First Mile Connectivity projects were identified and action is being taken.

4. Tenders for procurement of HEMM worth approx. Rs. 5900 Crores were finalised. Thiswould improve the age profile of HEMM. and

5. Global Business Blue Print for ERP implementation was released on 1stNov.'2019.

2. FINANCIAL PERFORMANCE

2.1 Financial Results (CIL Consolidated)

During the year CIL had achieved an aggregate Pre-Tax Profit of Rs 24071.32 croresand post-tax profit of Rs. 16700.34 crores against pre-tax profit of Rs. 27126.87 croresand post-tax profit of Rs. 17464.42 crores in 2018-19. The subsidiary wise details ofPre-tax Profit are given in Annexure 1.

Highlights of performance

The highlights of performance of Coal India Limited Consolidated for the year 2019-20compared to previous year are shown in the table below:

PARTICULARS

2019-20

2018-19
Production of Coal (in million tonnes)

602.14

606.888
Off-take of Coal (in million tonnes)

581.93

608.137
Sales (Gross) (Rs/Crores)

134979.13

140603.00
Capital Employed (Rs/Crores) Note- 1

80160.36

65849.58
Capital Employed (Rs/Crores)- excluding capital work in progress and intangible assets under development

67350.85

52120.01
Net Worth (Rs/Crores)

32138.34

26436.26
Profit Before Tax (Rs/Crores)

24071.32

27126.87
Profit for the Period (Rs/Crores)

16700.34

17464.42
Total Comprehensive Income for the period (Rs/Crores)

15365.61

17481.80
PARTICULARS 2019-20

2018-19

Profit for the Period / Capital Employed (in %) 20.83

26.52

Profit before Tax / Net Worth (in %) 74.90

102.61

Profit for the period / Net Worth (in %) 51.96

66.06

Earning Per Share (Rs.)(Considering Face Value of Rs.10 per share) 27.12

28.14

Dividend per Share (Rs.)(Considering Face Value of Rs.10 per share) 12.00

13.10

Coal Stock (Net) (in terms of no. of month's Net Sales) 0.70

0.53

Trade Receivables (Net) (in terms of no. of month's Gross Sales) 1.28

0.47

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

General Reserves:

During the year 2019-20 a sum of Rs. 758.75 crore (Rs. 791.17 crores) was transferredto General Reserve out of CIL Consolidated profits (amount of Rs. 1206.90 crores wasutilized for buyback of shares and tax on buyback in 2018-19).

Capital Reserves:

Grant / Funds received under Science and Technology (S&T) Promotional RegionalExploration (PRE) Coal Controlling Development Authority (CCDA) etc as an implementingagency and used for creation of assets are treated as Capital Reserve and depreciationthereon is debited to Capital Reserve Account. The ownership of the asset created throughgrants lies with the authority from whom the grant is received. The balance of grants ason 31.03.2020 and 31.03.2019 was 18.58 crores and 18.88 crores respectively.

2.2 Dividend Income and Pay Outs (CIL Standalone)

While the financial statements of both CIL Standalone and CIL Consolidated arepresented separately only CIL Standalone is listed and relevant for dividend payment toits shareholders. The dividend to its shareholders are paid out of CIL's Standaloneincome the major part of which constitutes the dividend income received during 2019-20from its five profit making subsidiaries i.e. CCL NCL SECL MCL and CMPDIL. The breakupof such dividend received and accounted for during the year from different subsidiariesare given in Annexure 2.

During the year ended 31st March'2020 Government of India has furtherdisinvested 4.82% of its Equity share capital equivalent to 297382228 equity sharesThus the holding of Government of India stands at 66.134% of total equity share capitalof the Company as on 31 st March 2020.

During the year 2019-20 CIL (Standalone) has paid a total dividend (by way of interimdividend) of Rs. 7395.27 crores @ Rs. 12.00 per share on 6162728327 equity shares ofRs.10/- each fully paid up. Out of above total dividend the share of Govt. of India wasRs. 4890.76 crores and for other shareholders Rs. 2504.51 crores. (Earlier year - TotalDividend Rs. 8105.58 Crores; Govt. of India - Rs. 5839.33 crores and other shareholders -Rs. 2266.25 crores). The interim dividend be treated as final dividend for the year2019-2020.

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 2019-2020 on supplementaryaudit conducted under section 143(6)(a) [and also read with Sec 129(4)] of the CompaniesAct 2013. The comments on supplementary audit of Standalone and Consolidated FinancialStatements are enclosed as Annexure 3 and Annexure 4 respectively.

2.4 Management Explanation on Statutory Auditor's Report

The statutory auditors of the company have given an unqualified report [Annexure3(A) and Annexure 4(A)] on the Standalone Financial Statements and ConsolidatedFinancial Statements respectively of the company for the financial year 2019-20. Howeverthey have drawn attention to certain matters under "Emphasis of Matters".

In Audit Report on Standalone Financial Statement the Auditors have drawn attentionunder Emphasis of Matter regarding -

Long term (non-current) investments in two subsidiaries by the CIL Standalone whichhave been adequately explained in footnote 1 of note no.7.

Temporary suspension of mining operations at Tikak Tipong and Tirap mines at NEC fromJune 03 2020 due to forest and other statutory clearance which have been explained inpoint no. 37(5)(o) of additional notes to Standalone Financial statements.

In Audit Report of Standalone as well Consolidated the Auditors have drawn attentionunder Emphasis of Matter regarding the change in accounting policy in respect of valuationof closing inventory of coal from FIFO method to weighted average cost method and thechange in accounting policy with effect from April 01 2019 in respect of materialitythreshold for prior period adjustment from 0.50% of consolidated total revenue fromoperation (net of statutory levies) to 1.00% of total revenue from operation (net ofstatutory levies) of the Company. Both changes in policy has been explained in point no.38(7)(n) of additional notes to consolidated Financial statements and point no. 37(5)(p)of additional notes to Standalone Financial statements.

In consolidated accounts the Auditors have drawn attention regarding deferment ofreversal of MAT Credit [Ref. note no. 36]; impact of outbreak of COVID-19 [Ref. note no38(7)(x)] regarding contingent liability towards penalty for mining of coal in excess ofthe environmental clearance limit in respect of certain mines [Ref. note no.38.5(a)(i)];provision of Rs. 414.87 crores pending adjustment of price finalisation of washed mediumcoking coal supplied by CCL a subsidiary of CIL [Ref. note no. 38.7(q)(ix)] and Balanceconfirmation [Ref. note no Note 38 (7) (m)]. These issues have been adequately explainedin the respective notes/footnotes in the accounts referred above. Further Auditors havedrawn attention to the observation of CAG in supplementary audit of CCL that incomearising out of reassessment and increase in the mine closure plan claims by Rs. 251.47crores during the year should have been treated as event pertaining to prior years insteadof recognizing the same as current year income.This is a statement of fact however thereis no impact on balance of retained earnings at the end of the financial year 2019-20.

There were certain other issues in few subsidiaries wherein the Auditors have drawnattention viz.; - regarding certain provision for Closure of Gorbi mines (in case of NCL)/ contingent liability includes disputed income tax demands. This amount consist ofprincipal and interest upto date of demand (in Case of NCL) / pending analysis of grade ofcontaminated clean coal (in case of CCL)/ internal audit for the month of February 2020and March 2020 was not done due to COVID-19 (in case of CMPDIL); Other current assetstransferred by the Company as income tax paid under protest (in case of CMPDIL).

3. COAL MARKETING

3.1 Sale of Coal

• The raw coal offtake during 2019-20 stood at 581.93 Mill Tes [including 0.512Mill Tes of coal purchased from Odisha Coal and Power Limited (OCPL)and resold by MCL interms of the provisions for sale of excess coal by OCPL to CIL as per the Coal MineDevelopment and Production Agreement entered between Government of India and OCPL]incomparison to 608.14 Mill Tes during 2018-19.

• Company-wise target vis-a-vis actual off-take for 2019-20 and 2018-19 are shownin Annexure-5.

• Several reasons can be attributed to the dip in coal offtake during 2019-20compared to the last year. Some of them are as follows:

a. Extended monsoon and heavy rains took heavy toll on the mining activities almosttill the end of October 2019. Even thereafter there was a number of spells of unseasonalheavy rain disrupting dispatch in almost all coalfields.

Evacuation started to look up from the month of December 2019 and registered growths of1.9% 6.9% & 6.8% on month to month basis during December January & Februaryrespectively.

However from the middle of the month of March 2020 there was serious setback in coalevacuation due to health advisory and country wide lockdowns to contain COVID-19. Offtakenosedived by 10.4% in March 2020 compared to the last year same period.

b. Power sector being the major coal consuming sector consumes about 80% of CIL coal.Primarily due to slump in coal based thermal electricity demand (negative growth of about2%) there has been a record coal stock accumulation to the tune of 45.01 MT at the powerstations by the end of 2019-20. This lead to regulation of intakes by various powerstations thereby affecting offtake from CIL.

c. Apart for the above General Election during April-May'19 and assembly election atJharkhand & Maharashtra during November & December'2019 affected the despatch.

• Despatch of coal and coal products during 2019-20 was at 582.48 MT.465.72 MillTes of CIL coal was despatched to the major consumers of CIL coal i.e. the power sectorconsumers.

• Sector-wise break-up of dispatch of coal & coal products for 2019-20 againstthe target and last year's actual is given in Annexure-6.

• Selling of coal through e-Auction windows like Spot e-Auction Special Spote-Auction Special Forward e-Auction for Power and Exclusive e-Auction for Non-Powerschemes had continued during 2019-20. The premium fetched against quantity booked during201920 was Rs.4502 crores i.e. 47% over the notified price of coal vis a vis the premiumfetched against booking of coal in the auctions conducted in 2018-19 was Rs.8983 croresi.e at 77% over the notified price.

3.2 Long term demand creation

Additional long term demands are created through linkages allotted through the belowmentioned schemes formulated by the government:

A. Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India (SHAKTI)for the Power Sector notified by the government on 22.5.2017.

B. Auction of coal linkages to Non-Regulated Sector (NRS) notified by the government on15.2.2016.

A. SHAKTI:

SHAKTI Policy contains provisions for coal supply for various categories of powerplants fulfilling different criteria.

Till 2019-20 under Para A(i) of SHAKTI policy FSAs with 7 TPPs were executed forsupply of 19.067 MTPA (4960 MW) out of allocated quantity of 22.513 MTPA (5890 MW). Alsoon the recommendation of SLC (LT) FSAs have been signed under the provisions of Para B(i)of SHAKTI with 6 Central/State Gencos for 3951 MW for an ACQ of 14.153 MT out of thetotal recommendation of 17160 MW from CIL.

Further linkage of 27.18 MTPA had been booked by the power plants in the auction oflinkage conducted by CIL under the provisions contained under Para B(ii) of SHAKTI (Round1). During 2019-20 FSAs for total booked quantity under Para B(ii) Round 1 have beenexecuted. The

levellised discounts in tariff offered by these power plants for securing these coallinkages is expected to result in an annual saving of Rs.125 crores in tariff for the endusers.

CIL successfully conducted Linkage Auction under SHAKTI B(ii) Round 2 in May 2019 forthe power plants having long term PPA but did not participate during Round 1 of B(ii)auction. Coal linkage of 2.97 MTPA was booked by 8 successful bidders. The documentationprocessing for signing of FSA is under progress. Auction for B(ii) Round 3 is beingconducted by PFCCL.

SHAKTI scheme under para B(iii) provided for auction of coal linkages to IPPs withoutPPA. CIL conducted Linkage Auction under B(iii) during 5th - 7th Feb'20 wherein 6.48 MTPAwas booked by 7 successful bidders.

MoC vide letter dated 25.03.2019 informed CIL that the Cabinet Committee on EconomicAffairs (CCEA) had approved some amendments in the SHAKTI policy. Pursuant to theamendments CIL conducted Tranche-I of SHAKTI B(viii - a) linkage auction for short termselling of power for the period April-June' 20 during 12th -19th March 2020. 1.34 Mt coalhas been booked by 9 successful bidders at notified price.

During 2019-20 under Para B (iv) of SHAKTI policy CIL has received requests for coallinkage from the State of Gujarat Uttar Pradesh and Madhya Pradesh. Regarding theavailability of coal along with other details including sources and conditions of suchsupply CI L had informed the concerned State authorities.

Under Para B (v) of SHAKTI policy CIL had received requests from MOP through MOC forearmarking 10 MT coal. Accordingly CIL has offered the desired quantity of 10 MTPAtowards this futuristic requirement.

A model agreement for issuance of linkage under both the clauses is under finalization.

B. Auction of coal linkages to Non-Regulated Sector (NRS):

Fresh linkages to consumers in Non-Regulated Sector are granted through auction oflinkages conducted in terms of the policy formulated by the government on 15.2.2016. Thecoal against the linkages secured in the linkage auctions are supplied under the FSAs tobe executed for a period of 5 years the tenure of which can be extended further for 5years upon mutual consent. In the case of the Steel Sector the FSA tenure has beenincreased from 5 years to 10 years with a provision of mutual extension by another 5years.

The Linkage auction for Tranche-IV Others (coking) was conducted during 2019-20where linkage of 2.17 MTY was secured by the consumers at an average premium of 18.43% ofthe notified price. In the four tranches of auctions conducted between the years 2016-17and 2019-20 total linkage of 80.53 MTY had been granted at a weighted average premium of20.2% over the notified price. The additional premium shall be applicable throughout thetenure of these FSAs over the notified price applicable from time to time for thesupplies.

Further the Linkage auction for Tranche-V for Steel (Coking) & Sponge sub sectorswas also conducted in 2019-20 where linkage of 5.49 MTY was secured by the consumers at anaverage premium of 10.45% of the notified price. The process of auction for Cement CPPOthers & Others (Coking) sub sectors under Tranche V was put on hold due to certainchanges in the normative calculation methodology in the scheme/system as per direction ofMoC. The process of Tranche V auction shall be resumed upon incorporating such changes inthe system.

3.3 Long term demand committed through FSAs:

Considering the FSAs executed earlier with the power plants under the provisions ofNCDP and the FSAs executed under various provisions of SHAKTI there exists long termlinkage for a total quantity of about 565 MTPA with the Power Sector as on 31.3.2020.

For the year 2019-20 the total commitment for non-power sector is about 100 Mill Tescomprising of about 85 Mill Tes linkages granted under NRS Linkage Auction and about 15Mill Tes erstwhile non power FSAs and FSAs for State Nominated Agencies.

To cope up with any scenario of deficit in availability of coal at various coalcompanies supplies under the FSAs have been pegged at various levels of commitment.

3.4 Consumer satisfaction

• 3.4.1 Quality Management

For enhanced customer satisfaction special emphasis has been given to QualityManagement of coal from mine to dispatch point.

Now all the consumers of CIL have the option for quality assessment of the suppliesthrough independent third party sampling agencies. In order to monitor coal quality aportal 'UTTAM' (Unlocking Transparency by Third Party Assessment of Mined Coal) has beenlaunched by CIL to capture the entire cycle of sample. With the help of this portalinformation of coal quality on regular basis will be accessible to both Coal Companies andConsumers.

As many as 49 coal testing laboratories across the subsidiary companies of CIL are nowNABL accredited and accreditation process is underway in respect of another 08 labs.

• 3.4.2 Linkage Rationalization

Under the linkage rationalization initiatives undertaken to reduce the cost oftransportation of coal and generation cost of power linkages of the State/Central Gencosto the tune of 61.11 MT have been rationalized so far. The total annual savings for theconsumers due to this linkage rationalization is about Rs. 3650 Crores. Rationalization inrespect of 2 IPPs for 2 MT has also been partly implemented which would result in anannual benefit of Rs.118 crores to the end use consumers by way of reduction in powertariff as estimated by CEA.

Further Ministry of Coal vide letter dated 12th March'2020 inter-aliadirected to conduct further round of rationalization in line with the methodologycirculated by MoC vide letter dated 15th May'2018 which is in progress at CIL.

3.5 Coal Beneficiation:

CIL is presently operating 12 Coal Washeries with a total washing capacity of 31.23MTY. Out of these 10 are coking coal washeries and balance 2 are non-coking withcapacities of 20.23 MTY and 11 MTY respectively. The total washed coal productionincluding middlings from these existing washeries during 2019-20 was 12.72 MT

To enhance the beneficiation capacity of coking coal CIL is setting up further 5 newWasheries in BCCL. Out of these Patherdih (5 MTY) throughput capacity has been handedover for commercial operation in April 2020. 03 (Three) are under construction (9.5 MTY).These washeries are expected to be operational by 2021-22. The balance 1 washery namelyMoonidih Washery (2.5 MTY) is about to be tendered. More washeries are being planned forwashing the surplus coking coal so that import of coking coal is minimized in SteelSector.

CIL is also setting up 3 non-coking coal washeries in MCL for beneficiating thermalcoal to improve quality. One is under construction and others are awaiting work awardpending statutory clearances and Government NOCs.

3.6 Stock of Coal

The stock of coal (net of provisions) at the close of the year 2019-20 was Rs. 5200.47Crores (earlier year Rs.4138.24 crores) which was equivalent to 0.70 month's value of netsales (previous year 0.53 month's). The company-wise position of stock held on 31stMarch 2020 & on 31st March 2019 are given in Annexure 7.

3.7 Trade Receivables

Trade Receivables i.e. net coal sales dues outstanding as on 31.03.2020 afterproviding Rs. 1887.90 crores (previous year Rs. 1721.76 crores) for bad and doubtfuldebts was Rs. 14408.22 crores (previous year Rs. 5498.55 crores) which is equivalent to1.28 months Gross Sales of CIL as a whole (previous year 0.47 month's). Subsidiary-wisebreak-up of Trade Receivables outstanding as on 31st March 2020 as against 31stMarch 2019 are shown in Annexure 8.

3.8. Payment of Royalty Cess GST & Others Levies

During the year 2019-20 CIL and its Subsidiaries paid/adjusted Rs. 43058.72 crores(previous year Rs. 44826.43 crores) towards Royalty Cess GST and other levies asdetailed as per details given in Annexure 9.

4. COAL PRODUCTION & FUTURE OUTLOOK

Raw coal production and production from underground and opencast mines.

Production of raw coal was 602.138 Mill Te during 2019-20 against 606.888 Million Tonneduring 2018-19. Production from Opencast mines during 2019-20 was 95.01% of total raw coalproduction. Subsidiary wise production production from underground and opencast mines andcoking and non-coking production are annexed in Annexure 10.

Washed Coal (Coking) Production-Subsidiary-wise production of Washed Coal (Coking)is given in Annexure 10A.

Overburden Removal-Company-wise overburden removal is disclosed in Annexure 10B.

FUTURE OUTLOOK

Based on the demand projection in 'Vision 2024' for coal sector in the country andsubsequent demand projection on CIL a roadmap has been prepared to project productionplan in medium term wherein CIL has envisaged 1 Billion Tonne (Bt) coal production in theyear 2023-24 to meet the coal demand of the country. To achieve this target CIL hasidentified major projects and assessed other related issues.

The capital expenditure for the year 2020-21 has been set at Rs.10000 Crores. CIL hasplanned to invest substantial amount in diversification projects viz. Solar Power Revivalof Fertilizer Plants Coal Gasification CBM Rail Wagon procurement etc. during 2020-21.

5. POPULATION OF EQUIPMENT

The Population of Major Opencast Equipment (Heavy Earth Moving Machinery) as on1.4.2020 and as on 1.4.2019 alongwith their Performance in terms of Availability &Utilization expressed as percentage of CMPDI Norm is enclosed as Annexure 11.

There is a decrease of 219 Equipment in Shovel-Dumper system after Survey-off of oldequipment in 2019-20. Purchase Order for High Capacity HEMM of Rs. 5900 Crores (approx.value) viz. 14 Shovel 179 Dumper 44 Dozer has been placed.

In the Financial year 2020-21 CIL is planning to procure High Capacity Equipment ofmore than Rs. 7000 Crores viz. 6 Dragline 27 Shovel 198 Dumper and 11 Dozer for enhancedcoal production target in coming years.

6. CAPACITY UTILIZATION

During 2019-20 total volume of coal and overburden handled by CIL was about 1531M.Cum. The overall system capacity utilisation of CIL thus worked out to be about 73%.Details is given in Annexure-12.

7 PROJECT FORMULATION

7.1 Project Implementation:

a) Projects Completed During the year 2019-20:

03 coal projects with a sanctioned capacity of 9.60 MTY and sanctioned capital of Rs1052.57 Crores were completed during the year 201920. Details are given in Annexure 13.

b) Project started Production during the Year 2019-20:

02 Projects with a sanctioned capacity of 4.5 MTY and sanctioned capital of Rs 623.99Crores have started coal production during the year 2019-20. Details are given in Annexure13

c) Status of Ongoing Projects (Costing Rs 20 Crores & above):

123 coal projects costing Rs. 20 Crores and above are in different stages ofimplementation out of which 69 Projects are on schedule and 54 Projects are delayed. Themajor reasons for delay in implementation of these projects are delay in obtaining FC andpossession of land and issues related to R&R.

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

a) PR/UCE/RPR/RCE sanctioned by CIL Board & Subsidiary Board during 2019-20:

18 Projects with total rated capacity of 132.04 MTY and total investment of Rs.21244.55 Crores were approved by CIL and Subsidiary Company Boards during 2019-20. Detailsare given in Annexure 13

b) Non-Mining Projects sanctioned by CIL & Subsidiary Board during 2019-20:

09 non-mining projects with a sanctioned capital of Rs. 855.52 were approved during2019-20. Details are given in Annexure 13

7.3 Key Strategies:

Strategies for Coal Evacuation:

Coal India Limited had adopted following strategies for development of coal evacuationinfrastructures:

First Mile Connectivity (FMC) Projects:

CIL had adopted an approach for eliminating road transportation of coal from mineshaving capacity of 4 Mty and above. These entailed capacity creations of mechanizedconveyor system and computerized loading system (SILOs) with an objective of eliminatingwharf wall loading by pay loaders and limiting dispatch through road to a maximum of 10%(non-addressable).

Procurement of BOXN-S Railway Wagons:

CIL Board in its 387th meeting held on 22nd July 2019 approvedprocurement of 40 rakes of BOXN-S railway wagons under Railway's General Purpose WagonInvestment Scheme (GPWIS) at a capital cost of Rs .675 Crores to augment availability ofrakes for evacuating coal in the South East Central Railway circuit feeding to 15 powerhouses thereby enhancing evacuation capacity of CIL.

Status of Rail Projects:

As of now CIL had identified 07 Railway Projects for evacuation of coal out of which03 were funded by CIL on deposit basis and 04 were funded through JVs/ SPVs by CIL. Thestatuses of these projects were as under:

Funded by CIL on Deposit Basis

1) Tori-Shivpur New BG Single line (43.70 KM) - Commissioned
2) Jharsuguda -Barpali- Sardega New BG line (52.41 KM) - Commissioned

3) Rail Connectivity of Lingaraj SILO with Deulbeda siding at Talcher Coalfields of MCL- Work in progress (72%). Likely to be commissioned in March2021

Funded through JVs/ SPVs by CIL;

1) Mahanadi Coal Rail Ltd (MCRL) - Angul- Balram rail link in Talcher coalfield ofOdisha - Work in progress in Railway land.

2) Jharkhand Coal Rail Ltd (JCRL) - Shivpur-Kathautia Railway Line in North KaranpuraCoalfield of Jharkhand - Land acquisition in progress.

3) Chhattisgarh East Rail Ltd (CERL) - East Rail Corridor in the state of Chhattisgarh- Phase - I - Kharsia to Karichhapar (0-44 KM) commissioned on 12-10-2019. Balance work inprogress.

4) Chhattisgarh East West Rail Ltd (CEWRL) - East West Rail Corridor in the state ofChhattisgarh - Loan agreement had been signed between CEWRL and Consortium of Bank led bySBI.

7.4 Achievement in Acquisition and Possession of land:

In all Subsidiaries of Coal India the major portion of land is possessed which wereacquired under Coal Bearing Areas (Acquisition & Development) Act 1957. During2019-20 notification U/S-9 (1) has been issued for 115.81 Ha and notification U/S-11 (1)has been issued for 631.58 Ha of land.

During 2019-20 3336.12 Ha of land had been taken in physical possession in differentSubsidiaries of Coal India.

7.5 System Improvement in Project Monitoring:

CIL had developed WEB Based Online Monitoring System for monitoring implementation ofcoal projects. As of now 82 coal mining projects costing Rs. 150 Crores and have beenmonitored with server based MS Project. CIL is also monitoring its ongoing projectsthrough MDMS Portal.

Crucial issues are also being uploaded by CIL and its Subsidiary Companies on thee-CPMP Portal of MOC and MOC is vigorously following up with the State Governments andother associated ministries by holding meetings with concerned officials to expedite EC& FC clearances.

7.6 One Billion Coal Production Programme

M/s KPMG had studied coal demand in India based on which a roadmap was drawn at CIL tomeet 1 Billion tonne target in 2025-26. But now the production plan is being modified toreach 1 Billion tonne in 2023-24 itself with a CAGR of 13.53%.

8. CONSERVATION OF ENERGY

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

Coal Production has decreased by 0.78% in 2019-20 compared to 2018-19 electricityconsumption has also decreased to 4459.34 Million Units (excluding washery) in 2019-20vis-a-vis 4503.31 Million Units (excluding washery) during 2018-19 with a decrease of 1%.In terms of total coal production specific energy Consumption during 2019-20 was 7.40kWh/T vis-a-vis 7.42 kWh/T during 2018-19 with a decrease of 0.27%. In terms of compositeproduction Specific Energy Consumption (kWh/CuM) during 2019-20 was 2.91 vis-a-vis 2.78kWh/CuM during 2018-19 with an overall increase of 4.67% .Except the Coal producingcompanies CMPDI CIL & coal washeries of CIL consumed 184.94 Million Units in 2019-20.

Some of the salient measures taken by CIL/Subsidiaries for energy conservation arestated below: -

During 2019-20 CMPDI has done electrical energy audit for three projects/ offices ofNCL namely (i) Jhingurdah OCP (ii) Block B OCP; and (iii) NCL headquarter complex. Totalestimated saving from energy conservation measures is around 9.25 lakhs kwh/annum with anestimated reduction of Rs. 172.8 lakhs/ annum in power bill. The following measures havebeen taken towards energy conservation in different areas of CIL.:-

1) High wattage luminaries /conventional light fittings have been replaced with lowpower consuming LEDs of appropriate wattage in majority of the places for street lightingoffice and other work places townships etc. thereby resulted in huge saving potential inelectricity consumption. In 2019-20 more than 143000 LED lights in different capacity andmore than 2000 super fans have been installed in different areas.

2) The energy audit of the CIL office building and adjacent residential complex wasdone by CMPDI in 2018-19 and in this process the contract demand of Office Building hasbeen reduced from 1450 KVA to 1200 KVA and for Residential complex it has been reducedfrom 500 KVA to 250 KVA. These modified contract demands have been implemented in October2019 and it reduced the electricity bill of office building and residential premises by11% and 30 % respectively.

3) Almost all the areas of the subsidiary companies have maintained power factors ashigh as 95% or more during 2019-20 by installing Power Capacitors of appropriate KVARrating. There are some remarkable saving from power factor improvement in some of thesubsidiaries such as ECL -Rs 11.36 crores MCL -Rs 1.3 crores and NCL -Rs 2.98 crores.

4) Overhead lines have been replaced by Arial bunch cable wherever possible to avoidpilferage of electricity.

5) Reorganization of township power distribution and merging of commercial load withdomestic load for saving in power bill where ever possible.

6) Reduction in peak demand of power for availing TOD incentive.

7) Elimination of stage pumping/ intermediate pumping to reduce energy loss use ofproper size of suction and delivery line as per design to avoid throttling.

8) Construction of UG surge bunker to avoid idle running of belt.

9) Installation of auto timer switch in street light circuit.

In addition to above CIL / Subsidiary Companies are also pursuing use of alternativeenergy sources. Various steps have been taken for utilizing solar power as an alternatesource of energy some of which are as stated below :

i) In kilo-watt scale roof top solar plants are in successful operation at variousplaces since their commissioning. Subsidiary wise total capacity of installed roof top areECL -197 kWp BCCL - 6 kWp CCL - 872.5 kWp WCL - 1097 kWp Coal India Office Kolkata-160 kWp CMPDIL HQ and Regional Institutes - 500 kWp. Total units generated from theseplants in 2019-20 was 24.469 lakh units.

ii) In megawatt scale one ground-mounted solar power plant (2.016 MWp) is in operationat MCL HQ premises since its commissioning on 13.10.2014 which generated 21.8 lakh unitin 2019-20.

9. CAPITAL EXPENDITURE

Overall Capital Expenditure during 2019-20 was Rs. 6269.65 crores as against Rs.7311.46 crores in previous year. Capital Expenditure incurred during 2019-20 is 62.70% ofBE (76.96% in 2018-19). Subsidiary-wise details are given in Annexure 14.

10. COAL VIDESH DIVISION

A. INITIATIVES FOR ACQUISITION OF COAL ASSETS ABROAD:

1. Acquisition of coking coal assets abroad:

As an outcome of initiatives undertaken for acquiring coking coal assets abroad twopotential coking/semi coking coal assets were identified in Canada for due diligence.Tenders were floated for selection of Investment Banker(IB)/Merchant Banker (MB) to renderfinancial due diligence and transaction advisory services. Responses received against thetenders are under approval process for award of work.

2. MOU with Russian Govt. Agency:

In the glorious presence of Hon'ble Prime Minister of India and Hon'ble President ofthe Russian Federation a bilateral Memorandum of Understanding (MoU) was executed on4-Sep-2019 at Vladivostok between Coal India Limited and Far East Investment & ExportAgency (FEIEA - a Russian Govt. agency). This relationship is aimed to leverage thebilateral relations to venture into the business of acquisition development and operationof coking coal assets in the Far East Region of Russia.

B. REVIVAL OF FERTILIZER PROJECTS:

1. Setting up of natural gas based ammonia-urea complex at Gorakhpur Sindri andBarauni

A Joint Venture company named Hindustan Urvarak & Rasayan Limited (HURL)among CIL NTPC IOCL FCIL and HFCL was constituted to set up natural-gas based 1.27 MTPAurea plant at the premises of closed fertilizer plants of FCIL at Gorakhpur (U.P.) &Sindri(Jharkhand) and that of HFCL at Barauni (Bihar) with the shareholding of promotersbeing CIL- 29.67% NTPC- 29.67% IOCL- 29.67% & FCIL/HFCL (combined)- 10.99% . Thethree plants are being set up with an estimated cost of around Rs. 22000 crores which isbeing financed by a debt-equity structure of 75:25. Contracts were awarded to therespective successful bidders for setting up of three plants on Lump-Sum Turn Key (LSTK)basis. Currently construction works of all three projects are on track and overall workprogress is around 86% at Gorakhpur 76% at Sindri and 75% at Barauni. The urea productionis expected to commence in 2021.

2. Setting up of coal based ammonia-urea complex at Talcher

A Joint Venture Company named Talcher Fertilizers Limited (TFL) among RCF CILGAIL and FCIL was constituted to set up Surface Coal Gasification based integratedfertilizer complex at Talcher using coal from nearby Talcher coalfields with theshareholding pattern of promoters being CIL-29.67% RCF-29.67% GAIL-29.67% &FCIL-10.99%. The plant will be set up at an estimated cost of around Rs. 13277 croreswhich will be financed by a debt-equity structure of 72:28.Coal blended with pet-coke upto25% shall be gasified to produce syngas which shall be converted into neem coated urea ofannual capacity of 1.27 Million Metric Tonne.

TFL Board and Board of Promoter Companies approved coal gasification technology of M/sAir Products (earlier M/s Shell) for the proposed plant. The project is being implementedon partial Lump Sum Turn Key (LSTK) basis. Work orders for Coal Gasification plant andAmmonia Urea plant were awarded to M/S Wuhuan Engineering Co. Ltd China on 11thSept'2019 and 19th Sept'2019 respectively.

All pre-project works such as Commissioning of Construction Water System Constructionof Power Line Land Development etc. are progressing in full swing. LSTK contractor M/sWuhaun Engineering had commenced site preparation through local contractor.

C. DIVERSIFICATION IN COAL TO CHEMICAL SECTOR:

1. Setting up of Coal to Methanol plant at Dankuni Coal Complex (DCC)

In another maiden initiative CIL is exploring the possibilities to venture intoCoal-to-Chemicals sector on stand-alone basis by setting up a Coal- to-Methanol plant atDankuni Coal Complex (DCC). Coal sourced from Raniganj coalfields shall be gasifiedto produce syngas which shall be subsequently converted into methanol. M/s. Project &Development India Ltd. (PDIL) had prepared the Pre-Feasibility Report (PFR) for setting upof a 2050 MTPD (0.676 MTPA) capacity Coal to Methanol plant. M/s Projects &Development India Limited (PDIL)had also been selected as the technical consultant.

As per directive of 399th CIL Board held on 11th February-2020an open global EOI was floated on 20th March'2020 seeking inputs frominterested parties for preparation of tender document for selection of Contractors forsetting-up and operation of the proposed Coal-to-Methanol plant on Build-Own-Operate (BOO)basis.

2. MOU with GAIL:

Another front in surface coal gasification has been opened through execution of aMemorandum of Understanding (MOU) between CIL and GAIL (India) Ltd. to explore areas ofmutual cooperation for setting up of additional coal-to-chemical plant in the vicinity ofhigh Calorific Value coalfields of CIL. The technical expertise and marketinginfrastructure of GAIL will pave the way forjoint planning of diversification projects ofCIL with minimum risks particularly in the area of Synthetic Natural Gas (SNG).

11. Master Plan for dealing with fire subsidence and rehabilitation

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 crores for Raniganj Coalfields. Implementation period ofMaster Plan have been delineated as 10 years for ECL & 12 years for BCCL. Twenty-one(21) High Powered Central Committee (HPCC) meetings were held till date under thechairmanship of the Secretary (Coal) MoC to review the activities of implementation ofMaster Plan. Jharia Rehabilitation and Development Authority (JRDA) and Asansol DurgapurDevelopment Authority (ADDA) are the implementing agency for rehabilitation of non-BCCL& non ECL people under Master Plan.

A. Summarized Status of Implementations of Raniganj Master Plan (in the leasehold ofECL):

There are 03 unstable locations under ECL which were already vacated. As per thedemographic survey report provided by ADDA around 29.000 non-ECL families are required tobe rehabilitated from unstable locations. 12976 flats in 811 Blocks has been proposed inthe DPR prepared by Housing Department Govt. of WB. Construction of 160 flats atBijojnagar mouza have been completed in 2019-20. Further constructions of 12816 flatshave been started and construction activities of 8816 flat are in progress.

The status of infrastructure development activity is as follows:

i) ECL has assigned thejob to IIT Kharagpur for stability assessment of rail track inconnection of Diversion of Andal -Sitarampur Railway line from unstable location whichwill be completed by 1st week of June 2020

ii) For assessment of stability of the area of NH-2 Bye-pass ECL has awarded the workto IIT Kharagpur and the work of protective work for permanent stabilization of theexisting NH-2 road is underway.

iii) The work of diversion route of Gourangdih -Begunia colliery in consultation withDistrict Magistrate(DM) Paschim Bardhaman & ADDA officials is in process.

B. Summarized Status of Implementations of Jharia Master Plan (In the leasehold ofBCCL):

As per Master Plan 54159 families in 595 sites are to be surveyed. JRDA has completedsurvey of all 595 sites through CIMFR ISM whiz Mantra and JRDA. For rehabilitation ofnon-BCCL families construction of 18352 houses have been taken up by JRDA in BelgoriaRehabilitation Township "JhariaVihar". Out of that 6352 houses have alreadycompleted and 3114 families have shifted by March 2020. Balance 12000 houses are underdifferent stages of construction. 7714 houses have been constructed out of 15852 housesfor rehabilitation of BCCL families in which 4057 families have shifted till March 2020.Remaining 8138 houses are in different stages of construction.

Regarding Status of fire dealing NRSC has submitted study report in 2018 where thesurface fire area has been reported as 3.28 Sq km against the earlier 8.9 sq km mentionedin the Master Plan.

The time frame of 10 years for implementation of Raniganj Master Plan has already beenexpired on 11.08.2019. Jharia Master Plan will expire on 11.08.2021. As per directive of19th HPCC meeting draft comprehensive proposals incorporating alternativerehabilitation package time and cost overrun have been prepared by ECL and BCCL inconsultation with CMPDI RI-1 & ADDA and CMPDI RI-II & JRDA respectively. Therevised draft comprehensive proposals related to Jharia and Raniganj Master Plan werediscussed in 21st HPCC meeting and HPCC Committee directed for revision of both theproposals

12 ENVIRONMENTAL MANAGEMENT

12.1 Management System Standards:

CIL HQ obtained re-certification of ISO9001:2015 ISO 14001:2015 and ISO 50001:2011 forQuality Management Environment Management and Energy Management System respectively fromBureau of Indian Standards (BIS) in 2019-20. As on 31st March 2020 three Subsidiaries ofCIL i.e. ECL CCL and NCL were certified for Integrated Management System (ISO9001:2015ISO 14001:2015and OHSAS 18001:2017). CMPDI HQ and its seven RIs are certified for ISO9001:2015.

12.2 Pollution Control Measures and their Efficacy:

CIL is committed to protect environment by practicing and following sustainable miningpractices right from mine planning stage. Various pollution control measures andinitiatives are being taken up concurrently with mining operations for maintainingacceptable/permissible limits of major physical and chemical attributes of environmentnamely air water hydrogeology ground vibrations noise land etc.

(A) Air Pollution and its Control Measures:

To control and reduce dust generation during drilling blasting loading and coaltransportation CIL has taken up various initiatives imbibed in the EnvironmentalManagement Plan (EMP). The EMP is prepared keeping in mind the impact on existingenvironment and forest due to coal mining projects through Environment Impact Assessment(EIA) study of each project. Mist spraying systems mobile water sprinklers and automaticsprinklers have been provided to mitigate air pollution & its control measures.

Some of the important initiatives taken by CIL are as follows:

a) Loading of coal in wagons by series of belt conveyors & silo

b) Transportation of coal by tube conveyors covered trucks & railway wagons

c) Blacktopping repairing and strengthening of haul roads

d) Development of wind break and vertical greenery system

e) Deployment of more Surface Miners and Continuous Miners in opencast & U/G minerespectively for blasting free coal extraction.

(B) Mine Water Management:

Mine Discharge Treatment Plants (MDTP) are installed in mines for treatment ofdischarged mine water on the surface for second phase treatment. Treated mine water isthen used partly for dust suppression firefighting plantation washing etc. As per theneed of the local community treated mine water is supplied to the nearby villages fordrinking & irrigation purposes. In order to assess the impact of mining activities onground water quarterly monitoring of ground water levels is being carried out in andaround of the mine lease hold area. For ground water recharge within mine premises andnearby villages initiatives like rainwater harvesting digging of ponds/development oflagoons de-silting of existing ponds/tanks etc. have been taken. Regular monitoring ofmine workshop and domestic effluent is carried out as per rule and desired actions arebeing taken. Reports of the same are regularly submitted to SPCBs and MoEF&CC.

(C) Noise Pollution Control Measure:

For control of noise pollution various measures are adopted like Proper maintenance ofequipment Green belt development around the mine and residential area blasting in onlyday time and use of ear muff / ear plugs at noisy areas.

(D) Land Reclamation:

• Reclamation of the mined out areas and the external OB dumps are majorenvironmental migratory activities taken up by CIL. Reclamation of mined out areas arebeing done as per the Environmental Management Plan (EMP) and Mine Closure Plan (MCP)which are approved by MoEF&CC. Top soil preservation storing and use in theplantation areas are being done in the opencast mines. Concurrently reclamation andrehabilitation of mined out areas are taken up for gainful land use. After technicalreclamation is completed plantation is carried out which is termed as biologicalreclamation.

• Eco-restoration: For effective Bio- reclamation of disturbed land scientificstudies are carried out to select suitable species of plants for each coalfield andsustainable sequence of restoration through three tier plantation. Forest ResearchInstitute (FRI) have been engaged by CIL for sharing their expertise in the field ofeco-restoration in the reclaimed areas. Many Eco- restoration sites have been developed insubsidiary companies of CIL with technical collaboration of FRI.

• Eco-park in Reclaimed land: Eco Parks have been developed in many of the minedout areas and command areas of CIL like Gunjan ParkECL Gokul Eco-Cultural Park BCCLAnanya Vatika SECL Nigahi eco restoration Park NCL Ananta Medicinal garden MCLSaoner Park WCL Kayakalp Vatika Rajarappa Eco Park CCL etc. CIL has established 23Eco-parks and Mine Tourism Projects as on date.

• Monitoring of Reclamation: The land reclamation and rehabilitation operationsare being monitored by Satellite Surveillance. 52 major Opencast Projects(OCPs)producingmore than 5 Mm2 3 (Coal + OB) per annum are being monitored every year whileremaining OCPs producing less than 5 Mm3 (Coal + OB) per annum are being monitored inevery 3rd year. The study during 2019-20 shows that in 52 major OCPs havereclaimed area of 65.38% and active mining area is only 34.62% of the total excavatedarea. In addition CIL is conducting vegetation cover mapping through satellitesurveillance in every 3 years.

• Mine Closure Plan (MCP): MCP is an integral part of the project report preparedby CMPDIL for Coal mines. This progressive mine closure plan also forms a part of theEIA/EMP prepared and submitted to MOEF&CC for Environmental Clearance. As on 31stMarch 2020 Rs. 606.6 Crores has been reimbursed from the Escrow fund to the concernedProject Proponents for progressive and final mine closure activities.

(E) Strive for continual improvement in environmental performance.

The job of Developing approach and methodology for index rating of environmentalconditions and performance evaluation as per the EC conditions in 35 CIL (> 5Mm3 Coal +OB) Mines was assigned to ICFRE and ICFRE is finalizing Environment Performance RatingIndex(EPRI).

13. ERP IT Initiatives and Electronics & Telecommunication ERP:

1. Implementation of SAP ERP in Phase I at CIL MCL and WCL is being carried out.

2. Finalized Global Business Blueprint in September 2019. Global Business Blueprintwas released on 1stNovember 2019 on occasion of foundation day by HonorableMinister of Parliamentary Affairs Coal & Mines Shri Pralhad Joshi.

3. Persons trained in Functional and Technical modules of SAP was 3551 and total daysof training given was 268 days.

4. Coal India is endeavouring for early SAP ERP implementation at ECL BCCL CCLCMPDI NCL and SECL in Phase II.

IT initiatives:

1. Web application for Executive Contributory pension fund digitization and a Webportal has been successfully facilitated all retired employee get pension from LIC andother agencies in CIL and its Subsidiaries.

2. A comprehensive IT Policy has been framed for CIL and Subsidiaries which governs Useof IT Resources e-mail Policy Password Policy Policy on Adoption of Open SourceSoftware Backup Policy for Servers and other things.

3. Development of various inhouse web application has been carried out namely:

• MoC Dashboard

• Chairman Dashboard

• Development of COYLA application

These applications are at various stages of implementation. These applications havefacilitated monitoring of important task as well as production and dispatch.

4. In-house document digitization software has been developed which will replace TCSmake system. A huge amount of saving in each of operation has been achieved.

ELECTRONICS & TELECOMMUNICATION

1. Establishment of IT Facility Management& augmentation of Network Security atCIL-HQ: For facilitating the various IT services along with FMS and maintenancemonitoring of Rated- 3 Data center & IT Infrastructure has been re organized withoperation of NOC room. Next Generation Firewall (NGFW) in HA mode has been put in place toenhance periphery network security of LAN with redundant Internet Leased Line (ILL)connections at Coal Bhawan Kolkata.

2. Standardization of Unified LAN IP scheme for CIL NEC and Subsidiaries: - UnifiedLAN IP scheme for CIL and its all subsidiaries has been devised and circulated to ensureseamless integration of interconnectivity of different networks for data transfer as wellas for ERP implementation.

3. Enhancement of MPLS & Internet Leased Line (ILL) bandwidth for facilitatingMulti Video conferencing & other Internet based services at CIL(HQ): - Enhancementof bandwidth of MPLS & ILL links have been done to facilitate concurrent sessions ofVC among CIL Subsidiaries CIL Delhi Office &MoC etc. Two ILL links are providedthrough NGFW with the load sharing to improve the performance of internet based servicesfor the users.

4. Preparation to setup MPLS services for ERP: - A common technicalspecification for implementation of Primary & Secondary MPLS connectivity has beendevised finalized and circulated for ERP implementation at subsidiary level to ensurestandard networks across the Subsidiaries and at CIL HQ.

5. Leveraging of e-Office facility: - The facility to access e-office from home/ remote locations through internet has also been extended to officials by creating userVPN in WAFA (Work anytime from anywhere) system utilizing in-house resources forfunctioning of official work in this lockdown situation.

6. Extension of VC facility to remote locations: -In order to meet thechallenges to work from home for top management and senior executives for decision makingand smooth operation of mining activities during the lockdown period facilities toconnect large number of officials over Video Conferencing from home/office throughInternet using Laptop / Mobiles has been devised and extended using in house VC equipment.The Web based VC platform is also being used by different Dept. of CIL with outsideagencies and other stakeholders.

7. Enhancement & Management of multiple concurrent VC sessions during lockdownperiod:- In order to support increased demand for Video Conferencing session existingend point VC System has been integrated to connect Laptop/Desktop users for ensuringsocial distancing amid COVID-19 lockdown period utilizing available extreme criticalresources. The endeavor has been oriented to utilize extreme critical resources duringthis period which facilitated concurrent VC sessions.

8. GPS/GPRS based Vehicle Tracking System across all areas of differentsubsidiaries of CIL have been implemented along with Geo-fencing boom barriers and RF-IDsystem to track the movement of coal transport vehicles to minimize the risk of coal theftand increased trip efficiency etc.

9. CCTV cameras are installed across CIL Subsidiaries in vulnerable points likesidings coal stocks mine operational areas & other strategic locations such asMagazines Central stores Central Workshops etc. for electronic surveillance to keep acheck on pilferage of coal and safeguard of assets.

10. In order to improve coal dispatch electronic weighbridges are connected withCentral Servers of respective subsidiaries and initiatives have been undertaken forimplementation for online generation of Challans/Invoices.

11. State-of-the-art IP based EPABX with support of convergent technology for voice anddata Radio communication System and UG communication system at different locations ofCoal India and its subsidiary companies are operational in order to meet the demandingbusiness process.

12. State-of-art Rated 3 certified Data Center at CIL HQ is being managed andmaintained for IT services mobile Apps & web applications.

14. MINES SAFETY

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

Coal mining world over is highly regulated industry due to presence of severalinherent operational and occupational hazards and associated risks. Coal Mine SafetyLegislation in India is one of the most comprehensive and pervasive statutory frameworkfor ensuring occupational health and safety (OHS).

In India the operations in coal mines are regulated by the Mines Act- 1952 MinesRules -1955 Coal Mines Regulations-2017 and several other statutes framed there under.Directorate-General of Mines Safety (DGMS) under the Union Ministry of Labour&Employment (MOL&E) administers these statutes. Other major Act/Rule are applicable incoal mines are the Electricity Act- 2003 Central Electricity Authority (measures relatingto electricity safety & supply) Regulations - 2010 Indian Explosive Act-1884 &Explosive Rules-2008 Indian Boiler Act-1923 the Employee's Compensation(Amendment)Act-2017 and the Factories Act - 1948 Chapter -III & IV.

14.2: Safety Policy of CIL: Safety is always accorded with 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 mines. To implement CIL Safety Policythe following are provided:

1. Provision of adequate funds for mine 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 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 in mines.

14.3: Accident Statistics

Analysis of Accident Statistics in CIL - Accident statistics is the relativeindicator for safety status in mines. Over the years the safety performance of CIL hasimproved significantly. Fatalities in the year 2019 touched lowest mark since theinception of Coal India Limited in 1975.This improvement in mine safety in CIL isattributed to the following contributing factors:

1. Collective commitment and synergetic collaboration of the Management Employees theregulator (DGMS) and Trade Unions.

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

3. Continuous improvement in knowledge skill and responsiveness of workforce throughimparting excellence safety training and persistent safety awareness drives.

4. Constant vigil round-the-clock supervision and supports from various agencies.

5. Salient features of continuous and sustained improvement in CIL's safety performanceis disclosed in following graphical representation and also in Annexure 15.

14.4: Measures for improvement of Mine Safety in 2019

CIL has vigorously pursued several measures in the year 2019 along with the on-goingsafety related initiatives apart from compliance of statutory requirements for enhancingsafety standard in mines which are given below:

• Conducting Safety Audit of mines through multi-disciplinary Safety Audit teams.

• Risk assessment based Safety Management Plans (SMPs).

• Principal Hazards Management Plans (PHMPs)

• Site-specific Risk Assessment based Standard Operating Procedures (SOPs).

• Special Safety drives to improve standard of mines safety and enhance safetyawareness.

• Regular co-ordination with ISOs for assessing the safety status of mines.

• 56th meeting of CIL Safety Board was held on 24.06.19 for assessingthe mine safety status.

• The 18th meeting of the National Dust Prevention Committee (NDPC) washeld on 20th September 2019 for assessing the status of dust suppression.

• Foreign Technical Training Programme in China on "Coal Mine SafetyManagement for CIL Executives and Exposure to Best Practices in China".

• Observation of "ILO's World Day for Safety and Health at Work" topromote the preventive Safety culture.

• Installed one 'Universal Equipment Simulator' at CETI in NCL Singrauli toimpart simulation training to Dragline Shovel and Dozer Operators. Simulator allowsoperator to hone their skills.

• Indigenously built solar powered based real time dump monitoring device has beeninstalled in OC mine of WCL.

• Apart from system of wet drilling and water Sprinklers for dust suppressionmist type fixed as well as trucks mounted water cannons have been introduced in OC mines.

Apart from the above specific actions the following are on-going measures forimproving safety standards:

• Emphasis on adoption of the state-of-the art technology in suitable geo-mininglocales.

• Adoption of the state-of-the art mechanism for Strata Management

• Mechanism for monitoring of mine environment

• Strengthening Water Danger Management.

• Training on Mine Safety & Skill Up gradation.

• Emphasis on inspection of mines.

15. Mine Emergency Response System:

15.1: Emergency Plan: This includes :-

• Emergency Action Plans as per statute for each mine.

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

• Demarcating Emergency Escape Routes in belowground.

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

• Flow Chart prepared for transmission of information regarding crisis / disaster.

15.2 Mine Rescue Services in CIL:

• CIL is maintaining a well establishment Rescue Organization at strategiclocations spreading across different Subsidiaries to cater to the emergencies on 24X7basis.

16 HUMAN RESOURCE DEVELOPMENT

Coal India Limited is geared up for the development of its existing human resources andlooking ahead with a clear perspective with reference to technological advances and growthof manpower to fulfil the growing demands of production along with diversification into aligned and non- aligned areas.

During 2019-20 different training programs were organized at subsidiary headquarterstraining centres vocational training centre and also at CIL's own in-house trainingfacility Indian Institute of Coal Management Ranchi. These training programs wereorganized after accessing the training needs in the respective category of employeeswithin the subsidiary. Employees are given trainings for skill development and acquisitionof knowledge and skill in existing and future technology as well as safety.

16.1 Training and Development of Human Resources:

In addition to in-house training employees were trained at reputed training instituteswithin the country and even abroad in their respective fields of operations forsupplementing in-house training efforts.

During 2019-20 80379 employees were trained in house out of this 11989 wereexecutives. 5359 employees have been sent outside for training out of which 4512 wereexecutives.

The total manpower of the CIL as on 01.04.2019 was 285479 which had come down to272445 as on 31.03.2020. During FY 19-20 more than 655136 training man-days wereachieved including executives and non-executives (excluding contract workers) compared to624815 man-days in FY 18-19 thus registering a growth of 4.85% over the last year.37764 contract workers were trained during the financial year.

16.2 Engagement of Apprentices:

During the year 2019-20 in CIL and its Subsidiaries 11189 Apprentices were engagedthrough NATS and NAPS portals which constituted 3.19% of total manpower includingcontractor workers. In this area a growth of 38.74% was achieved over the last year.

16.3 Special Initiatives:

• 24 executives were sent for training on 'Advance Management Program' atAustralia

• A week long Training Course was held in Coaltrans School of Coal at OxfordUnited Kingdom where seven executives attended.

• Executives were sent to IITs ISM Dhanbad IIMs etc. for short term courses.

• 16 In-house training programs were conducted in CIL(HQ).

• Numerous Executives attended short term training courses conducted in premierinstitutes viz. IIT Mumbai IIT Kharagpur ISM Dhanbad IIM Bangalore etc.

• Ten executives attended a certified course on Project Management and secured theTeam Excellence Award amongst 34 teams.

17 RECRUITMENT

During 2019-20 CIL had inducted Management Trainees & Medical Executives throughdirect recruitment to fill up the vacancy arising out of retirement resignation etc. Thedetails of Executive manpower influx in CIL for F.Y. 2019-20 was as follows:

Designation (Grade) Nos. appointed
Management Trainee (E2 Grade) 77
Medical Specialists (E3 / E4 Grade) 56
Sr. Medical Officer (E3 Grade) 82
Total 215

77 Management Trainees were inducted into the company after imparting 2 weeks'induction training at IICM Ranchi. Subsequently the Management Trainees were posted todifferent subsidiaries as per the requirement/vacancy.

With the recruitment of 138 Medical Executives the strength of Doctors in the companyhas increased by 16% (approx.).

CIL notified 1326 vacancies in 11 disciplines for recruitment of Management Trainees(MT-2019) in Dec' 2019.The Computer Based Online Test (CBT) for the said MT-2019 OpenRecruitment was conducted at 279 Test Centres pan India on 27th Feb' 2020 in 03different shifts in which total 222374 candidates appeared.

18. MANPOWER

18.1 The total manpower of the Company including its subsidiaries as on 1stApril' 2020 stood at 272445 against 285479 as on 1st April'2019.A detailed Subsidiary wise position of Manpower was given in Annexure 16.

18.2 The presidential directives with respect to manpower for ScheduledCaste/Scheduled Tribes/OBC were implemented in all the subsidiaries/ units of Coal IndiaLimited.

The representation of SC/ST employees in total manpower of CIL and its SubsidiaryCompanies as on 01.01.2018 01.01.2019 and 01.01.2020 were given below: -

As on

Total Manpower

Scheduled Caste

Scheduled Tribe

Nos. Percentage Nos. Percentage
1.1.2018 302006 57761 19.13 41373 13.70
1.1.2019 288687 54578 18.91 43560 15.09
1.1.2020 276092 54854 19.87 43262 15.67

19. INDUSTRIAL RELATIONS AND EMPLOYEES' PARTICIPATION IN MANAGEMENT

The Industrial Relations scenario in CIL & its subsidiaries during the financialyear remained cordial. Joint Consultative Committees and other Bipartite Committees atUnit/Area levels and Subsidiary (HQ) levels continued to function in harmony. Meetings ofBilateral Committees were held at regular intervals at CIL to address IR WelfareProductivity/Production Safety etc. issues. Except for few minor issues of local natureat a few Subsidiaries there had been no major IR problem in the company. Ex-gratia amounthad been enhanced from Rs 5 Lakh to Rs 15 Lakh w.e.f. 07.11.2019 to the next of kin of anyemployee including contractors' workers dying out of fatal mine accident.

20. EMPLOYEES' WELFARE AND SOCIAL SECURITY SCHEMES

Coal India Limited strives to provide the best facilities for Welfare of its employeesand their families. The facilities that are extended to all sections of the Society like-Scheduled caste Scheduled Tribe backward classes minorities as well as othermarginalised segments of the society without any discrimination were given below:

20.1 Housing facilities

All eligible employees are provided company quarters subject to availability andCompany rules. Regular repair and maintenance including thorough repair of these housingsare undertaken regularly to provide decent housing to our employees.

20.2 Water supply

To provide clean drinking water to the employees and their families many water supplyschemes have been taken up. Supply of water is done after proper treatment and several ROplants/ Pressure filter plants are also existing in coalfields that cater notjust to ouremployees but also to the population in the neighborhood

20.3 Educational Facilities

The Subsidiary companies of CIL had been providing financial assistance andinfrastructure facilities to schools operating in Mines areas like DAV KendriyaVidyalaya Delhi Public School etc. and other Educational Institutions run by the StateGovernment to provide quality education to the employees' children. In addition financialassistance and infrastructure facilities were also provided to certain privately managedschools and other educational institutions by some of the subsidiary coal companiesfunctioning around coalfield areas.

20.3.1 Coal India Scholarship Scheme:

For employees' children two types of scholarships viz Merit and General Scholarshipare being provided every year under certain prescribed terms and conditions. In MeritScholarship Students securing 1st to 20th position in Madhyamik/H.S. or any State Board or securing 95% and above marks in ICSE CBSE / ISC Exam (Class-X& XII) were given scholarship per month.

General Scholarship is provided to Students studying Class-V onwards upto Graduation/Post- graduation level in any discipline subject to prescribed percentage of marks.

20.3.2 Cash Award and Certificate of Appreciation:

• Every year Cash Award of 5000 and 7000 are provided to the Meritorious wards ofCIL employees who secure 90% or above Marks in aggregate in 10th and 12thstandard Board level examination respectively.

• Considering the high cost of technical and medical education in the countryCoal India Limited is providing financial assistance towards meeting the cost of educationof the dependent children of Wage Board Employees to the extent of tuition fees and hostelcharges who secure admission in IITs NITs ISM and Govt. Engineering and Medical college.

20.4 Medical Facilities

• Coal India Limited and its Subsidiaries are extending medical facilities to theemployees and their families through various medical establishments from the dispensarylevel to the central and apex hospitals in different parts of the coalfields. Forspecialized treatment where the expertise/ facilities is not available they are referredfor treatment outside in the empanelled hospitals.

• "CIL policy for engagement of Medical Consultants on fixed tenure contractbasis" came into force w.e.f. 30th March'2020 which enabled decentralizedselection of Medical Consultants by Subsidiaries of CIL.

• For transporting the patients to hospitals ambulances with latest technologyand life support systems are provided at central places in entire coalfields.

• In addition special emphasis is laid on Occupational Health HIV/AIDS Awarenessprogramme for the employees and their families.

• Medical facilities of OPD and indoor treatment in Company's hospitals/dispensaries are also extended to the workers engaged by contractors.

20.5 Statutory Welfare Facilities

In accordance with the provision of the Mines Act 1952 and Rules and Regulationsframed there-under subsidiaries of Coal India Limited are maintaining various statutorywelfare facilities for the coal mines such as Canteen Rest Shelters etc.

20.6 Non-Statutory Welfare Measures

20.6.1 Co-operative stores and Credit Societies.

In order to supply essential commodities and consumer goods at a cheaper rate in thecollieries Central Co-operative and Primary Co-operative Stores are functioning in theCoalfield Areas of CIL. In addition Co-operative Credit Societies are also functioning inthe Coal Companies.

20.6.2 Banking Facilities and Post Offices

The management of Coal companies are providing infrastructure facilities to variousNationalized Banks for opening their Branches and Extension Counters in Coalfields for thebenefit of their workers. Workers have been educated to draw their salaries from thebanks. Similarly there have been efforts to bring the post offices to the proximity ofworkers by encouraging opening of facilities closer to residential colonies.

20.6.3 Holiday Homes

Coal India Ltd. provides facilities of Holiday homes at places of tourist attractionat nominal cost for the benefit of its employees & their families. These facilitiesare also available for retired employees.

20.7 Sports Facilities

A sports policy for CIL and its Subsidiaries was approved by CIL Board of Directors. Asper the policy Coal India Sports Promotion Association (CISPA) an autonomous body forpromotion of sports & culture had been registered under West Bengal SocietiesRegistration Act 1961. CISPA had undertaken several sports activities at National as wellas International level.

20.8 Empowerment of Women

• As on 01st March'2020 19469 female employees were working in CILand its Subsidiaries under different establishments. The Forum of Women in Public Sector(WIPS) was established under the aegis of Standing Conference of Public Enterprises(SCOPE) on 12th February

1990 which came into existence at CIL in the same year. The forum had been activelyworking for the empowerment of women in the Company. Coal India Limited is also the proudrecipient of Second Prize in Maharatna category for achievement of WIPS CIL for2019-2020.

• 16 women specific training programs with a total of 322 participants conductedat Coal India Limited.

• Coal India Limited has a Sexual Harassment Complaints Committee comprising ofmembers as per the guidelines provided by Hon'ble Supreme Court of India (Details aregiven in sl. 38 of the report). The company in addition to maternity benefitsprovided under the Maternity Benefit Act 1961 provides 730 days of Child Care Leave onfull salary to women employees subject to other conditions as stipulated in the policy.

20.9 CIL Welfare Board Meeting

• Coal India Welfare Board is the decision making forum for welfare policies whichenabled betterment and improvement in living condition of employees in CIL.

• The members of CIL Welfare Board comprises of Central Trade Unionrepresentatives and Management representatives who meet on regular basis to discuss thewelfare measures and review the implementation status of various welfare schemes.

21. Measures taken by the Company to combat CoVID 19.

Ministry of Home affairs Government of India circulated an order vide date ref No40-3/2020-DM(A) dated 24-Mar-2020 and addendum dated 25-Mar-2020 wherein Coal and mineralproduction Transportation Supply of explosives and activities incidental to miningoperations have been placed in exempted category of Industrial Establishment as CoalIndustry is an essential service and Coal India Limited is a Public Utility ServiceOrganization.

The employees working at CIL Head Quarters have been allowed to resume duty at workplace in a phased manner. The employees who reside in the containment zone have beenexempted from attending duties in the office and have been allowed to work from home.

CIL has also taken following important measures to combat CoVID-19.

1. Stopped attendance through Biometric Attendance System.

2. Avoiding gathering

i. Meetings through Video Conferencing

ii. Staggered timing for employees attending office

iii. Closure of Schools under command areas of Subsidiaries

3. Identification of hospitals/dispensaries for isolation centres.

4. Constitution of team of Doctors including doctors who attended National seminar onCOVID-19 to monitor the situation.

5. Restricting physical movement of paper and people. Use of e-office email or otherelectronic mode of communication to the maximum extend.

6. Public health messages and awareness programs.

7. Sanitization of workplace application of 1% Sodium hypochlorite.

8. Arrangement of Sanitizers masks hand gloves etc. for employees as well as generalpublic.

9. Thermal Screening of employees.

10. Closure of community centres/clubs Parks Gyms grounds; religious places etc.

11. Restriction of OPD in Hospitals.

12. Self-declaration from employees about their travel history.

13. Advisory for isolation of employees their wards relatives etc. with travelhistory

14. Procurement of drugs for Corona Isolation Ward patients.

15. Procurement of items to combat Corona epidemic through committee purchase.

16. Stitching of masks.

17. Procurement of ventilators.

18. Earmarking ambulance to carry Corona suspected patient.

19. Promoted regular use of Aarogya Setu Mobile App among all employees.

OTHER MEASURES TAKEN BY THE COMPANY

Fighting the Pandemic: - MONETARY Contribution to PM CARES Fund Coal India Ltd. has contributed an amount of Rs. 221 crores to the 'PM Cares Fund' to fight the COVID19 pandemic including employees contribution of one day's salary amounting Rs. 61 crores
CIL's subsidiary company NCL contributed Rs 20 Crores to Madhya Pradesh CM relief fund SECL Contributed Rs 10 crore to Chhattisgarh State Disaster Management Authority CCL Supported Rs 20 crores to Jharkhand State Disaster Management Authority and CIL Supported Rs 20 crores to West Bengal Disaster Management Authority and WCL contributed Rs. 20 Crores to Maharashtra State Disaster Management Authority.
- Payment to Contractual Workers during Lockdown Period Full Payment of salary / wages by the Contractors to their workers during the lockdown period.
- Social Support to needy by providing food and shelter CIL and its subsidiaries have distributed 281815 cooked food packets and 136168 packed rations to downtrodden and needy during the lockdown period.
- Medical support to address the health crisis Coal India's 35 hospitals spread across eight coal producing states have set aside 1234 beds for corona suspected cases and corona positive cases.
Central Hospital of Bharat Coking Coal Ltd. in Dhanbad Jharkhand Central Hospital Gandhinagar Jharkhand and Regional Hospital Ramgarh of Central Coalfields Ltd. have been converted into COVID Hospitals and handed over to the State Government to treat the patients. Mahanadi Coalfields Limited has fully funded a state-of-the-art 500 bedded SUM - COVID Hospital in Bhubaneswar Odisha. A 50 bedded main hospital of South Eastern Coalfields Ltd. in Korba Chhattisgarh has been converted into COVID Hospitals and handed over to the State Government of Chattisgarh to fight COVID. In addition SECL has contributed Rs. 4.08 crores for upgradation of District Hospital Bilaspur to 100 bedded exclusive COVID treatment centre. SECL also contributed Rs. 4.19 crores for upgradation of Government Medical College Ambikapur to 100 bedded exclusive COVID treatment centre.
CIL subsidiaries has distributed 1542982 masks and 63256 litres of hand sanitizer to its employees and people living around its operations to fight COVID19.
Subsidiaries of CIL have procured N95 masks ventilators PPE suits thermal scanners & oxygen cylinders to help fight the COVID pandemic.
CIL has also introduced a policy to engage medical consultants / retired paramedics to fight COVID19 on contractual basis.
Innovation R&D and Technological Breakthrough State-of-the-art-technology 'Fog Cannons' are being pressed into service to sanitize residential colonies camps of contract workers and neighboring villages.
CIL employees have developed a pedal based wash basin. The user has to press a pedal with the foot to start the flow of water and another pedal to dispense hand wash. So without touching the knob of the tap or the hand wash bottle hands can be washed safely.
Wearing a face mask is an effective way to stop the transmission of corona virus. CIL and its companies have put their skill development centers on the job of stitching masks which are then distributed to employees and people living in and around their mines.
Preventive Measures The guidelines issued by DoPT / DPE / MHA and State Authorities are implemented.
(for the organization and employees) Coal mining equipments workplaces and residential areas are sanitized to help prevent the spread of COVID-19.
Awareness Campaign CIL has published a digital flip book "Ready Reckoner" on how to fight COVID19 which has been sent to all employees and is also posted on its website url: 'http:// web.coalindia.in/flipbook/en'.
Coal India ran a "Coronavirus Awareness Campaign" in all subsidiaries especially for Front line employees housekeeping and maintenance personnel where they were informed about the preventive measures and precautions to be taken while at work. The guidelines of maintaining physical distancing at the work place and sanitization were adhered to both in the mines and offices of CIL.

22. TREE PLANTATION / AFFORESTATION

Plantation and Green belt are developed through extensive tree plantation programmeevery year by the Subsidiaries of CIL. Avenue plantation plantation on the OB dumpsplantation in and around mines residential colonies and available government land areundertaken in the existing as well as the new projects. The subsidiaries of CIL haveplanted around 19.76 lakh saplings during 2019-20 in an area covering more than 812 Ha.with an increase of more than 10% over previous year in term of number of saplings. Sinceinception the subsidiaries of CIL have planted around 100 million trees covering an areaover 39842 Ha.

23. PROGRESSIVE USE OF HINDI

Coal India Limited is committed to implement the provisions of the Official LanguagesAct Rules and Regulations and all activities are held regularly in each quarter. Theactivities during the year included:

• Quarterly workshops to enable use of Hindi in officialjobs.

• Training of employees in Hindi noting and drafting as well as provisionsregarding Official Languages Act

• For the first time a five-day translation training program for CIL (HQ)employees was organized.

• Publication of Hindi Magazine namely "Koyla Darpan" from CIL HQ.

• Executives of Hindi Cell participated in two Rajbhasha Conference of TownOfficial Language Implementation Committee (PSU).

• Observation of 'Hindi Fortnight' in all offices of CIL and Subsidiaries in themonth of September by conducting various events and competitions.

• Training of employees in Hindi Praveen &Pragya classes under Hindi teachingscheme of Govt. of India.

• A grand Kavi Sammelan was organized on 18th Oct'2019 in the campus ofCoal India Ltd HQ.

• Three departments of Coal India Ltd. were conferred with Rajbhasha Shield forthe best practices in Official Language implementation for the FY 2018-19

Following awards were conferred on CIL by various Government organizations:

• 'Koyla Darpan' in-house magazine of CIL was conferred with "RAJBHASHASAMMAN" in the international conference organized by The World Hindi Council on 13-14September 2019 in New Delhi in collaboration with the Ministry of Home Affairs Governmentof India.

• In the meeting of Town Official Language Implementation Committee (PSU) Kolkataon 29th Jan'2019 Coal India Limited was awarded Second Prize in the CorporateOffice category for the best execution of Official Language Implementation by HonorableGovernor of West Bengal Shri Jagdeep Dhankharji.

24. VIGILANCE SETUP

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

During the year 2019-20 27 Intensive Examination of Works/Contracts (Major works) wasundertaken by CIL (HQ). In addition 248 inspections were carried out. Besides 48Departmental Inquiries were disposed of which resulted in punitive action against 176officials. Such examinations/ investigations have resulted into initiation of varioussystem improvement measures.

In accordance with the directives of the Central Vigilance Commission the VigilanceAwareness Week was observed in Coal India Limited IICM- Ranchi North EasternCoalfields-Margherita & Regional Sales Offices across the country w.e.f. 28.10.19 to02.11.19 emphasizing the theme of this year for Vigilance Awareness Week "Integrity- A way of life".

Vigilance Awareness Week was observed by organizing various activities in order togenerate awareness educate and discuss transparency among officials /stake holders aswell as general public to arrest the root cause & threat of corruption to promotegood governance and envisage the theme of this year. The activities were organized bothin-house and as outreach programs in Schools/Colleges across Kolkata Ranchi MargheritaAssam and also as Gram Sabha in CIL WB and NEC Projects focusing this year's theme ofVigilance Awareness Week.

Preventive Vigilance/ System Improvement

System Improvement Studies - Studies were undertaken in following areas:-

Subject of Study

1 Mission - under loading minimization (mum)

2 Study conducted on ESM Contracting Regime for Loading and Transportation of Coalthrough Ex-Servicemen (ESM).

3 System improvement suggestions to minimize human intervention in award and executionof Road Sale Contract.

4 System improvement for procurement of fabricated items

5 Implementation of Bill tracking system.

6 Complaint handling System.

25. PARTICULARS OF EMPLOYEES

Employee received remuneration either equal to or in excess of the limits prescribedunder Rule 5(2) of Companies (Appointment and Remuneration of Managerial Personnel) Rules2014 during 2019-20 is given in Annexure 17. 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 employeesare annexed to the Report.

26. BOARD OF DIRECTORS & KMP

Shri Pramod Agrawal was appointed as Chairman cum Managing Director (CMD) and ChiefExecutive officer (CEO) from 1st Feb'2020 on the superannuation of Shri AnilKumar Jha Chairman cum Managing Director (CMD) on 31st Jan'20 (After Noon).Shri Binay Dayal Director (Technical) and Shri R.P. Srivastava Director (P &IR) wereon the Board throughout the year. Shri Sanjiv Soni has been appointed as Director(Finance) and Chief Financial Officer (CFO) from 10th July' 2019. Onsuperannuation of Shri S.N.Prasad Director (Marketing) on 30th Nov 2019 ShriS.N. Tiwary was appointed as Director (Marketing) from 1st Dec'19.

Shri R.K. Sinha Joint Secretary MoC ceased to be Director on 28th Nov'19and Shri Vinod Kumar Tiwari AS MoC was appointed as Director from 29thNov'19. Smt. Reena Sinha Puri JS &FA MOC was on the Board throughout the year. Sheceased to the Director of the Company w.e.f 28th May'2020.

On completion of their tenure Smt. Loretta Mary Vas Dr S.B. Agnihotri Dr D.C.Panigrahi Dr. Khanindra Pathak and Shri Vinod Jain ceased to be the Independent Directorsfrom 17th Nov'19. Shri V.K.Thakral and Shri B.L.Gajipara were IndependentDirectors on the Board throughout the year.

Shri R.R. Mishra CMD WCL and Shri S. Saran CMD CMPDIL continued throughout the yearas permanent invitees. Shri Anurag Addl. Member (Traffic transportation) Railway Boardon superannuation ceased to be the permanent invitee from 31st Dec'19 and ShriS K Mishra Addl. Member Traffic Transportation was appointed as permanent invitee from22nd April' 20. Shri M. Viswanathan was company secretary and compliance officerthroughout the year. Shri S. Sarkar GM (Fin.) in-charge functioned as CFO till 9th July19.

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 the 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. Shri Binay Dayal will retire byrotation and also offered himself for re-appointment.

The Board of Directors held 19 meetings during the year 2019-20.

27. Composition of Audit Committee

CIL in pursuance of excellence in corporate governance formed an Audit Committee of itsBoard of Directors w.e.f. 20th Jul'2001 and the present Audit Committee wasre-constituted by the Board in its 395th meeting held on 25th Nov'19consisted of Two Independent Directors one Government Nominee one Invitee and onepermanent invitee. Details were disclosed in Corporate Governance Report under pointnumber 3.1.

28. Composition of CSR Committee

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

29. Declaration given by independent directors under sub-section (6) of Section 149.

The following independent directors had given their declaration during 2019-20 thatthey meet the criteria of independence as stipulated in subsection (6) of Section 149 ofthe Companies Act 2013.

i. Shri V.K.Thakral

ii. Shri B.L.Gajipara

iii. Smt. L.M. Vas

iv. Dr. S.B. Agnihotri

v. Prof. Khanindra Pathak

vi. Shri D.C. Panigrahi

vii. Shri Vinod Jain

Further as required under Section 149(7) of the Companies Act'13 and Regulations 25(8)of SEBI (LODR) Regulations 2015 as amended all the Seven (7) Independent Directors hadsubmitted declaration that he/she meets the Independence Criteria as provided in Clause(b) of Regulation 16(i) of LODR 2015 and they are not aware of any circumstance orsituation which exists or may be reasonably anticipated that could impair or impacthis/her ability to discharge duties with an objective independentjudgment and without anyexternal influence. Further as required under Regulation 25(9) of LODR 2015 as amendedthe Board of Directors of the Company took on record the declaration and confirmationsubmitted by the Independent Director under Regulations 25(8) after undertaking dueassessment of the veracity of the same.

30. Appointment / Re-appointment and Integrity Expertise & Experience (includingProficiency) of Independent Directors

No Independent Directors were appointed/ Re-appointed during the financial year2019-20. Hence Board has not formed any opinion on the Integrity Expertise &Experience (including Proficiency). However two Independent Directors have registeredthemselves on the Databank for IDs with IICA.

31. Recommendation of Audit Committee by the Board.

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

32. Company's policy on directors' appointment and remuneration including criteria fordetermining qualifications positive attributes independence of a director and othermatters provided under sub-section (3) of section 178.

MCA vide Notification dated 5th June'2015 had exempted the above forGovernment companies.

33. Remuneration policy of directors KMPs and Senior Management - Section 178(4).

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

34. 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 July' 2017 had exempted evaluation mechanismfor Govt. Companies. However Company had prepared a policy for formal evaluation ofIndependent Directors Board Committees of the Board Executive Directors and NonExecutive Directors and got it approved by Board in its 385 meeting held on 30thMay'19.

35. Contracts or Arrangements with Related Parties

Related party transactions made with the Subsidiary companies. All such transactionswere exempted under Regulation 23(5)(a) and (b) of Securities and Exchange Board of India(Listing Obligations and Disclosure Requirements) Regulations 2015 being transactionsbetween two government companies and transactions entered between a holding and its whollyowned subsidiaries whose accounts are consolidated with holding company and placed beforethe shareholders at the general meeting for approval. Hence no form AOC2 was prepared.However the remuneration paid to Key Managerial Personnel is being disclosed separatelyin point no VI of Annexure 18.

36. 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 ofthe Companies Act 2013 is being enclosed in Annexure 19.

37. 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 asamended and SEBI (Listing Obligations and Disclosure Requirement) Regulations 2015. Asper Regulation 25 of SEBI (Listing Obligations and Disclosure Requirement) Regulations2015 the listed entity shall familiarize Independent Directors through various programmesabout the listed entity including the following:

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

(b) Business model of the listed entity;

(c) Roles rights responsibilities of Independent Directors; and

(d) Any other relevant information.

As per regulation 46 of SEBI (Listing Obligations and Disclosure Requirement)Regulations 2015 the details of the familiarization programmes given to IndependentDirectors is to be disclosed on the website of the company. The same is disclosed oncompany's website and link is given hereunder:-

https://www.coalindia.in/DesktopModules/DocumentList/documents/Familiarization_Programmes_imparted_to_Independent_Directors_

for_2019-20.pdf

38. Sexual Harassment of Women at the Workplace

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

1. Ms. Ratnabali Shome - Chairperson

2. Smt. Sangita Goyal - Member

3. Sri Chinmayanand Gupta - Member

4. Dr. (Mrs.) S.P. Banerjee - Member

5. Shri Hrishikesh - Member

6. Ms. Pallabi Halder - NGO Member

No sexual harassment complaint was received during the year 2019-20

39. DIRECTORS' RESPONSIBILITY STATEMENT

In terms of Section 134(3)(c) of the Companies Act 2013 read with the SignificantAccounting Policies at Note-2 & Additional Notes on Accounts at Note-37 forming partof CIL (Standalone) Accounts and Significant Accounting Policies at Note-2 &Additional Notes on Accounts at Note-38 forming part of CIL (Consolidated) Accounts:

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 andjudgments andestimates made that are reasonable and prudent so as to give a true and fair view of thestate of affairs of the company at the end of the financial year and profit & loss ofthe company for that period;

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

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

e) Internal Financial Controls have been laid down and that such controls are adequateand were operating effectively during the year.

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

For CIL (Consolidated) Accounts such confirmation is based on confirmation obtainedfrom eight Indian subsidiaries of CIL viz: Eastern Coalfields Limited Bharat Coking CoalLimited Central Coalfields Limited (consolidated) Northern Coalfields Limited WesternCoalfields Limited Mahanadi Coalfields Limited (consolidated) South Eastern CoalfieldsLimited (consolidated) and Central Mine Planning & Design Institute Limited. Howeverfor the overseas subsidiary viz. Coal India Africana Limitada which was incorporatedunder Mozambique Commercial Code and for Joint Ventures viz. International Coal VenturesPrivate Limited NTPC Urja Private Limited Hindustan Urvarak & Rasayan Limited andTalcher Fertilizers Limited where CIL is not the majority shareholder such confirmationhave not been obtained.

Internal Financial Control & its Adequacy Details are enclosed in MD&AR portion

The outbreak of Coronavirus (COVID -19) is causing significant disturbance and slowdownof economic activity in India and across the globe. The Company has evaluated impact ofthis pandemic on its business operations. Based on its review and current indicators ofeconomic conditions there is no significant impact on its financial results and carryingvalue of asset. The Company will continue to closely monitor any material changes arisingof future economic conditions and impact on its business

40. ACCOUNTS OF THE SUBSIDIARIES

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 20.In terms of General Circular No.2/2011 dated 8th Feb 2011 from Ministry ofCorporate Affairs the Annual Accounts of the subsidiary companies shall be made availableto the shareholders on demand.

41. COST AUDIT REPORT AND COST AUDITOR

M/s Balwinder Singh & Associates conducted the Cost Audit of your company for theyear 2018-19 and the Cost Audit Report was approved by the Board of Directors in their 392ndmeeting held on 21st Sep' 2019. The Cost Audit Report did not contain anyadverse observation/comment or qualification from the Cost Auditor. The above report wasfiled in XBRL mode with MCA website on 3rd October'19. Hence in accordance withprovision of section 148(F) of the companies act 13 read with company (Cost Record andAudit Rule) 2014 company has maintain the cost accounting and records.

M/s Dhananjay V. Joshi & Associates was appointed as Cost auditor for CIL(Standalone) for the year 2019-20. E-form CRA-2 has been filed with MCA portal vide SRNH93692143 dated 24th Sep'19.

42. SECRETARIAL AUDIT

In pursuance to Section 204 of Companies Act 2013 company had conducted SecretarialAudit for the year 2019-20 by a practicing Company Secretary M/s Parikh &Associates Practising Company Secretaries. Their appointment was approved in the 400thCIL Board meeting held on 12th March'20. Company has obtained an 'SecretarialAudit Report' and the response to the comments of Secretarial Auditor is enclosed in Annexure21. In addition CIL has 7 Material Unlisted Subsidiaries and their SecretarialAudit Report along with his/her Observations and Management Reply are also annexed as perRegulation 24A of LODR 2015.

43. RISK MANAGEMENT POLICY

CIL has approved Risk Management Charter and Risk Register to build up a strong RiskManagement Culture within CIL in achieving company's goals and objectives. The entitylevel Risk Assessment included: i) Strategic Risk. ii) Operational Risk. iii) FinancialRisk. iv) Compliance Risk. v) Project Related Risk. vi) Support System Risk. As per theRisk Register different risks have been identified for CIL & its Subsidiaries RiskOwner & Risk Mitigation Plan Owner have also been nominated for each risk identifiedto ensure continuous monitoring and mitigation thereof. A Consulting Agency under theguidance of the RMC was engaged to facilitate implementation of the governance processenvisaged in the Risk Management Framework along with formulation of Risk Mitigation plansfor the Prioritized Risks of CIL. The same has been adopted in CIL and is being monitoredunder the direction of CIL's Risk Management Committee. This was also reviewed by AuditCommittee in its 147th Meeting held on 3rd June' 2020.

44. WEBLINK

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

1. Corporate Social Responsibility Policy:

https://www.coalindia.in/DesktopModules/DocumentList/documents/CIL_CSR_Policy_New_Companies_Act_2013_05022016.pdf

2. Vigil Mechanism:

https://www.coalindia.in/DesktopModules/DocumentList/documents/whistle-blower-policy.pdf

3. Policy for determining Material Subsidiary:

https://www.coalindia.in/DesktopModules/DocumentList/documents/POLICY_FOR_DETERMINING_MATERIAL_SUBSIDIARIES_21032015.pdf

4. Related Party Transaction Policy:

https://www.coalindia.in/DesktopModules/DocumentList/documents/RPT%20POLICY%20CIl.pdf

5. Policy on determination of Materiality under SEBI(LODR) Regulations2015

https://www.coalindia.in/DesktopModules/DocumentList/documents/Policy_on_determination_of%20_Materiality_under_SEBI_

LODR_%20Regulations_2015_03042017.PDF

6. Policy on Preservation of documents including Archival Policy under SEBI(LODR)Regulations 2015

https://www.coalindia.in/DesktopModules/DocumentList/documents/Policy_on_Preservation_of_documents_including_Archival_Policy_under_SEBI_LODR_Regulations_2015_17052017.pdf

7. Dividend Distribution Policy under SEBI (LODR) Regulations 2015

https://www.coalindia.in/DesktopModules/DocumentList/documents/Dividend_Distribution_policy_of_Coal_India_Limited_25102017.pdf

8. Annual Return for the year 2018-19.

https://www.coalindia.in/DesktopModules/DocumentList/documents/Form_MGT-7-1920.pdf

9. Extracts of Annual Return for the year 2019-20:-

https://www.coalindia.in/DesktopModules/DocumentList/documents/Annexure%2018.-converted.pdf

45. COMPANY CONFIRMS THE FOLLOWING:-

1. None of the Directors are disqualified for 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. Unclaimed Final Dividend 2011-12 along with the Shares on which dividend had notbeen claimed for seven consecutive years were transferred to IEPF Authority as stipulatedin Companies Act 2013. Unclaimed Interim Dividend 2012-13 on which dividend had not beenclaimed for seven consecutive years were transferred to IEPF Authority on 26thJun'2020 as stipulated in Companies Act 2013 as per the relaxation given by MCA due toCoVID 19.

4. No Statutory Secretarial and Cost Auditors had resigned during the year 2019-20.

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.

11. Applicable Secretarial Standards i.e. SS-1 and SS-2 relating to 'Meetings of theBoard of Directors' and 'General Meetings' respectively have been duly followed by theCompany.

12. There is no material changes from the end of financial year 2019-20 till the dateof signing of this Board Report.

46. ADDITIONAL INFORMATION

1. Details in respect of frauds reported by Auditors under section 143(12) other thanthose which are reportable to the Central Government. No such report of fraud as per AuditReport of Standalone as well as Consolidated Accounts was received.

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

No such material changes and commitments occurred between the end of the FY and thedate of the report which may affect the Standalone as well as consolidated financialposition of the company. Impact of outbreak of COVID - 19 has been given separately.However management is closely observing the impacts of pandemic on its performance.

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

No such event has occurred during the financial year 2019-20.

47. ACKNOWLEDGEMENT:

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 Registrar of Companies West Bengal SecretarialAuditor and Cost Auditor and wishes to place on record their sincere thanks to Consumersfor their continued patronage.

48. ADDENDA

The following are annexed:-

i) Pre-tax Profit of CIL & its Subsidiaries for 2019-20 vis-a-vis 2018-19 (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 2020 including Report on the Internal Financial Controls under Clause (i) ofSub-section 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 2020 including Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act") [Annexure4(A)].

vii) Subsidiary wise Coal Off-take. (Annexure 5)

viii) Sector-wise dispatch of coal & coal products. (Annexure 6)

ix) Subsidiary wise details of Stock of Coal. (Annexure 7)

x) Subsidiary wise details of Trade Receivables. (Annexure 8)

xi) Subsidiary-wise payment of Royalty Cess Sales Tax Stowing Excise Duty CentralExcise Duty Clean Energy Cess Entry Tax and Others. (Annexure 9)

xii) Subsidiary-wise Coking & Non-coking production Production from undergroundand opencast mines. (Annexure 10)

xiii) Subsidiary-wise Washed Coal (Coking) Production. (Annexure 10A)

xiv) Subsidiary wise Overburden Removal. (Annexure 10B).

xv) Population of equipment. (Annexure 11).

xvi) Subsidiary wise System Capacity Utilization. (Annexure 12).

xvii) Project Implementation (Annexure 13).

xviii) Subsidiary wise details of Capital Expenditure. (Annexure 14)

xix) Safety performance. (Annexure 15)

xx) Subsidiary wise position of manpower and strikes and bandhs. (Annexure 16)

xxi) Disclosures under Rule 5(1) of Companies (Appointment and Remuneration ofManagerial Personnel) Rules 2014. (Annexure 17).

xxii) The extract of the annual return as provided under sub-section (3) of Section 92in Form No. MGT.9 (Annexure 18).

xxiii) Loan and Advances Guarantees Investments made by the company under Section186(4) of the Companies Act'2013 (Annexure 19).

xxiv) Statement pursuant to first proviso to sub-section (3) of section 129 read withrule 5 of Companies (Accounts) Rules 2014) as on 31st March 2020. (Annexure20).

xxv) Secretarial Audit Report under Section 204 of Companies Act 2013 and SecretarialAudit Report of Material Subsidiaries and Management Explanation. (Annexure 21).

xxvi) Foreign Exchange Earning and Outgo under Rule 8 of Companies (Accounts) Rules2014 (Annexure 22).

xxvii) Details about Research and Development of the Company (Annexure 23).

xxviii) Disclosure as per Section 135 of Companies Act 2013 on Corporate SocialResponsibility (Annexure 24).

xxix) Significant and Material Orders passed by the Regulators or Courts. (Annexure25).

xxx) Corporate Governance Report. (Annexure 26)

For and on behalf of the Board of Directors
Sd/-
Pramod Agrawal
Chairman
(DIN-00279727)
Dated: 17th July 2020
Kolkata

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