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Coal India originally incorporated as a private limited company with the name of ‘Coal Mines Authority Limited’, under the Companies Act, 1956, as amended (“Companies Act”) on June 14, 1973, pursuant to a shareholder’s resolution dated October 15, 1975 and approval of the Ministry of Law, Justice and Company Affairs dated October 21, 1975, got its name changed to ‘Coal India Limited.’ It received a fresh certificate of incorporation consequent upon change of name dated October 21, 1975 from the Registrar of Companies, West Bengal (“RoC”). Thereafter, pursuant to a resolution passed by the shareholders dated February 16, 2010 and approval of the Ministry of Coal, the Company was converted into a public limited company with effect from February 24, 2010.
The company being established in 1973 is wholly owned by the GoI. Its coal production operations are primarily carried out through seven of its wholly–owned Subsidiaries in India. In addition, another wholly owned Subsidiary, CMPDIL, carries out exploration activities for its subsidiaries and provides technical and consultancy services for its operations as well as to third–party clients for coal exploration, mining, processing and related activities.
The company has established a joint venture, ICVL, with SAIL, NTPC, NMDC and RINL for the acquisition of coal assets outside India. SAIL and Coal India each holds a 28.7% equity interest in ICVL and NTPC, RINL and NMDC each hold a 14.3% equity interest. In addition, it has also entered into a joint venture with NTPC to establish CIL NTPC Urja Private Limited ('CIL NTPC Urja'), a company formed primarily to jointly undertake the development, operation and maintenance of certain coal mine blocks in Jharkhand, and integrated coal–based power plants. NTPC and the Company each hold 50.0% equity interest in CIL NTPC Urja. It has also entered into an agreement with DVC and BEML to acquire the assets of MAMC at Durgapur, which manufactures a range of mining equipment specifically for underground mines. The company and DVC each hold a 26.0% equity interest in MAMC and BEML holds the remaining 48.0% equity interest. It has also entered into a memorandum of understanding with GAIL (India) Limited (“GAIL”) in January 2008 ('GAIL MoU') for the joint development of a surface coal gasification project for the production of synthesis gas to be used as a feedstock for fertilizer production. Further to the GAIL MoU, it entered into a memorandum of intent in December 2009 with GAIL and Rashtriya Chemicals and Fertilizers Limited (“RCF”) to jointly set–up coal gasification based ammonia urea and ammonium nitrate complex. GAIL is required to co–ordinate all preproject activities, RCF is responsible for engaging a consultant for the detailed feasibility report and technology selection services, while it is to facilitate coal availability. The company has been conferred the Navratna status by the GoI, which provides them with certain operational and financial autonomy, including for the approval of capital investment without any limit for projects in India and the formation of joint ventures or wholly owned subsidiaries within India and outside India up to 30.0% of its net worth.
As of April 1, 2010, it had total coal resources of 64,786 million tons, comprising, pursuant of ISP classifications, Proved Geological Reserves of 52,546 million tons, Indicated Geological Reserves of 10,298 million tons and Inferred Geological Reserves of 1,942 million tons. As of April 1, 2010, from the total coal resources of 64,786 million tons, 30,356 million tons had been considered for mining studies (mine planning and feasibility studies), and the remaining coal resources of 34,430 million tons had not yet been considered for such mining studies. From the 30,356 million tons of coal resources that had been considered for mining studies as of April 1, 2010, 21,754 million tons has been estimated as the Extractable Reserves.
Business area the company –
Coal India is the largest coal producing company in the world, based on the company’s raw coal production of 431.26 million tons in fiscal 2010. As of March 31, 2010, the company operated 471 mines in 21 major coalfields across eight states in India, including 163 open cast mines, 273 underground mines and 35 mixed mines, which include both open cast and underground mines.
The company also produces non–coking coal and coking coal of various grades for diverse applications. The 11 coalfields in which it conduct its most significant mining operations are the Korba, Singrauli, Talcher, IB Valley, Wardha Valley, Jharia, North Karanpura, Central India Coalfields, Raniganj, Rajmahal/Deogarh and East Bokaro coalfields.
Its customers include large thermal power generation companies, steel and cement producers and other industrial companies in the public and private sector with many of whom the company has long–standing relationships. Most of the company’s coal is used in the thermal power sector in India. NTPC, a public sector power generation company and utility, has historically been its most significant customer, and the company’s five largest customers are all public sector power utilities.
The company has nine direct Subsidiaries and two indirect Subsidiaries. They are as follows:–
- Bharat Coking Coal Limited(BCCL)
- Central Coalfields Limited;(CCL)
- Central Mine Planning & Design Institute Limited;
- Eastern Coalfields Limited (ECL)
- Mahanadi Coalfields Limited;(MCL)
- Northern Coalfields Limited;(NCL)
- South Eastern Coalfields Limited; and(ESCL)
- Western Coalfields Limited.(WCL)
1. Coal India Africana Limitada.(CIAL)
The following are its indirect Subsidiaries, which are held through its Subsidiary, Mahanadi Coalfields Limited:
- MJSJ Coal Limited; and
- MNH Shakti Limited
Major Events and Milestones:
- 1973–74 – Nationalization of coal mines, in order to provide for a higher growth in coal sector to meet the growing energy needs of the country.
- 1973–74 – Incorporation of the Company as ‘Coal Mines Authority Limited.
- 1975–76 – Change of name of the company to ‘Coal India Limited’.
- –Incorporation of CMPDIL, ECL and WCL, and formation of BCCL, CCL, CMPDIL, ECL and WCL, as its subsidiaries.
- 1979–80 – Construction of the low temperature carbonized plant started in Dankuni Coal Complex.
- – The pricing policy of CMPDIL was reviewed to ensure that the company was working on a commercial line instead of working on “no profit no loss” basis.
- 1980–81 – Construction of five new washeries: Moonidih washery, Ramgarh washery, Mohuda washery, Barora washery, Kedla washery.
- – Overall production of coal by the Company and its subsidiaries crossed 100 million tonnes.
- 1981–82 – Introduction of retention prices of coal by amending the Colliery Control Order, 1945 bynotification dated March 31, 1982, in respect of its Subsidiaries.
- 1985–86 – Formation of NCL and SECL as Subsidiaries of the Company, to manage certain mines managed by WCL and CCL.
- 1987–88 – ‘Blasting Gallery Method’ introduced at East Katras mine under BCCL and Chora mine under ECL.
- 1992–93 – Formation of MCL as its Subsidiary to manage mines Talcher and IB valley in the state of Orissa.
- 1995–96 – Approval of a financial restructuring package by the Government, whereby Rs 891.7 crore of interest liability was waived, Rs 904.18 crore of plan loan repayment arrears was converted to preference equity and Rs 432.64 crore of non plan payment arrears were allowed a moratorium for repayment and interest accrual for a period of three years, to be repaid in three equal instalments.
- 1996–97 – Rating of ‘A+’, indicating adequate safety with regard to timely payment of interest andprincipal, awarded by CRISIL in respect of the Rs. 400.0 crore bond issue by the Company.
- – Adoption of financial viability as the basis for approval of coal development projects.
- – Discontinuation of retention prices scheme and the Coal Price Regulation Account (CPRA), with the deregulation in prices of certain grades of coal.
- 1997–98 – Corporatization of the financial flow between the Company and Subsidiaries, such that the Company is to receive only dividends under applicable policy from its Subsidiaries and the corpus of the Company was to be utilized to provide strategic support to a loss making entity only for, maintaining their productive capital assets.
- – Sanction of loan of $1.03 billion from the World Bank and the Japanese Bank for International Co–operation for implementing 24 highly viable open case projects with global sourcing of equipments, of which $84.40 million was availed during the period between Fiscal 1998 to Fiscal 2004.
- 2001–02 – Laying down of a minimum internal rate of return of 12% at 85% capacity utilization as cut off for the development of a project.
- 2005–06 – Rating of ‘AAA/Stable’, indicating highest degree of safety with regard to timely payment of interest and principal, awarded by CRISIL in respect of the Rs 250 million bond programme of the Company.
- – Introduction of sale of coal through ‘e–auction method’.
- – ECL and BCCL reported profit of Rs. 363.8 crore and 202.67 crore in Fiscal 2006.
- 2006–07 – Decline in debt as a percentage of net worth from 66% in 2001–2002 to 10% in 2006 –2007.
- 2008–09 – Overall production of coal by the Company and its Subsidiaries, crossed 400 milliontonnes.
- 2009–10 – Establishment of Coal India Africana Limitada, a foreign subsidiary in Mozambique;
- Conversion of the Company into a public limited company.
- – Receipt by the Company of a composite score of 1.47 and rating as “excellent” for the year 2007–2008 by Department.
Awards and Accreditations:
- 2006–2007 – Conferred with the “Enterprise Excellence Award 2007” by the Indian Institution of Industrial Engineering.
- – Award of ‘Mini Ratna’ status by the Department of Public Enterprises, GoI, to the Company and to MCL, NCL, SECL and WCL.
- 2007–2008 – Award of ‘Mini Ratna’ status by the Department of Public Enterprises, GoI, to CCL
- 2008–2009 Conferred with the “SCOPE Gold Trophy 2007–08 for excellence and outstanding contribution to the Public Sector Management”
- – Conferred with the “World’s Largest Coal Producing Company” Award at the first Dalal Street Investment Journal PSU Awards, 2009.
- – Ranked among the top five finalists in the 11th Anniversary of Platts Global Energy Awards 2009, in the ‘Energy Producer of the Year’ category.
- – Award of ‘Navratna’ status to the company by the Department of Public Enterprises, GoI, for its operational efficiency and financial strength, which affords greater operational freedom and autonomy in decision making
- 2009–2010 – Award of ‘Mini Ratna’ status by the Department of Public Enterprises, GoI, to CMPDIL– Chairman and Managing Director of the Company, Partha S. Bhattacharyya, was conferred with the “CEO with HR Orientation” Award by the Council of World HRD Congress at the Global HR Excellence Awards Ceremony 2010.
- Coal India was granted the 'Maharatna' status on 11 April, 2011 by the Government of India.
- Coal India bagged a prestigious international award in Geneva on 7 March 2011.
- Central Mine Planning and Design Institute (CMPDIL), the Mini Ratna consultancy arm of Coal India bagged the prestigious “SCOPE Meritorious Award for R&D, Technology Development & Innovation” for the year 2009–10. This was announced on 17 March 2011.
–Coal India Limited was granted the 'Maharatna' status on 11 April, 2011 by the Government of India thus becoming only the 5th PSU in the country, of a total of 215 Central Public Sector Enterprises (CPSEs), to have been conferred with this status.
–Coal India made it to the 30–stock Sensex, on 8 August 2011, globally considered to be the barometer of the Indian economy, in short span of nine months since its listing on 4 November 2010.
–Coal India Limited bagged first prize of Official language Implementation Award
–Coal India wins India Pride Award 2011
–Company of the Year Award to Coal India
–Coal India Limited bagged a prestigious first ever international award in Geneva on 7 March 2011. CIL was conferred with the ''Century International Quality ERA Award (CQE)'' in the Gold Category in recognition of commitment to Quality, Leadership, Technology and Innovation.
–Coal India Limited (CIL) the Maharatna coal mining monolith was awarded ''IPE CSR Corporate Governance Award 2012'' for its outstanding achievement in Corporate Social Responsibility.
–Coal India Limited was named to 'Platts Top 250 Global Energy Company Rankings' for 2012 for having distinguished itself through its remarkable performance last year.
–Central Mine Planning & Design Institute (CMPDI) the Ranchi based mine consultancy arm of Coal India Limited (CIL) received the reputed ''Geospatial World Excellence Award 2012'' on 24th April, 2012, in Amsterdam, Netherlands.
–CIL bags 1st prize in the corporate offices category for best implementation of Official Language policy of the Union by Town Official Language Implementation Committee(TOLIC) (PSU) , Kolkata on the occasion of prize distribution ceremony–cum–Half yearly meeting held on 30.08.2013.
–Coal India Limited (CIL), the Maharatna coal mining PSU was conferred with two Corporate Social Responsibility Awards on 18 February 2013–the World CSR Day.
–Coal India Limited (CIL), the Maharatna PSU, was conferred with 'Best Geospatial Application in an Enterprise' Award, on 22 January 2013, by Geospatial Media and Communications Pvt. Ltd.