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Updated:18 Aug, 2022, 15:59 PM IST

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Updated:18 Aug, 2022, 16:01 PM IST



The Members, Coal India Limited

Ladies and Gentlemen,

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

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

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

Bharat Coking Coal Limited (BCCL),

Central Coalfields Limited (CCL),

Western Coalfields Limited (WCL),

South Eastern Coalfields Limited (SECL),

Northern Coalfields Limited (NCL),

Mahanadi Coalfields Limited (MCL) and

Central Mine Planning & Design Institute Limited (CMPDIL).

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

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

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

a. MNH Shakti Limited

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

b. MJSJ Coal Limited

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

c. Mahanadi Basin Power Limited

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

Subsidiaries of SECL

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


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

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

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

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

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

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


2.1 Financial Results (CIL consolidated)

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

2.2 Dividend Income and Pay Outs (CIL– standalone)

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

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

2.3 Observation of the Statutory Auditors

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

3. COAL MARKETING 3.1 (a) Off–take of Raw Coal

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

From the above, it may be seen that ECL had not only exceeded its target but also achieved a positive growth compared to the last year. Barring BCCL, all other coal companies had registered a positive growth in off–take.

Off–take suffered mainly due to:

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

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

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

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

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

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

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

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

3.2 Dispatches of coal and coal products by various modes

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

3. 3 Wagon Loading

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

3.4 Consumer satisfaction

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

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

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

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

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

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

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

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

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

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

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

3.5 Marketing of Coal

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

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

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

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

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

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

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

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

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

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

3.6 Coal Beneficiation

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

3.8 Trade Receivables

Trade Receivables i.e. net coal sales dues outstanding as on 31.03.2015, after providing Rs. 2510.32 crores (previous year Rs. 2589.01 crores) for bad and doubtful debts, was Rs. 8521.88 crores (previous year Rs. 8241.03 crores) which is equivalent to 1.07 months gross sales of CIL as a whole (previous year 1.11 months). Subsidiary–wise break–up of trade receivables outstanding as on 31.03.2015 as against 31.03.2014 are shown below:–

.5 Future Outlook

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

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


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



The overall system capacity utilization as a whole for the year 2014–15 has worked out to be 84.36%. It was 84.75 % during 2013–14. Subsidiary wise details are as under:


Output per manshift (OMS) during 2014–15 improved to 6.20 tonnes from 5.62 tonnes per manshift during the previous year. The company–wise position is given in the following table


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

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

8.2 Project Implementation a) Projects completed during the year 2014–15:

The following 4 coal projects, each costing Rs. 20 crores and above, with an ultimate capacity of 4.77 Mty and completion cost of Rs. 299.82 Crores have been completed during the year 2014 –15.

c) Status of Ongoing Projects

124 coal projects and 27 non–mining projects costing Rs. 20 Crores and above are in different stages of implementation (This excludes 13 approved coal projects of WCL subject to finalization of coal supply agreement on cost plus basis).

Out of 124 coal projects, 42 projects are running on schedule and 82 are delayed. Out of 27 non–mining projects, 14 are on schedule  and 13 are delayed

Reasons for Delay

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

Non Mining Projects

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

8.3 Projects Sanctioned (Costing X 20 Crores & above)

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

b) Projects sanctioned by CIL Board.

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

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

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

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

Group wise Production from Projects

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

Contribution from Subsidiaries

Projected contribution from MCL and SECL will be to the tune of 250 Mt and 240 Mt respectively during the year 2019–20. Production contribution from the subsidiary companies during the year 2019 – 20 have been projected as under–Eastern Coalfields Limited – 62 MTs; Bharat Coking Coal Limited – 53 MTs; Central Coalfields Limited – 133 MTs; Northern Coalfields Limited – 110 MTs; Western Coalfields Limited – 60 MTs; South Eastern Coalfields Limited – 240 MTs; Mahanadi Coalfields Limited – 250 MTs.

Major Challenges

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

Key Strategies

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

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

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

(II) Technology Development

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

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

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

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

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

(IV) Role of HR

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

Other Improvement Areas

(i) Coal Washing – A step towards quality improvement

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

(ii) System Improvements

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


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

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

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

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

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

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

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

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

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

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

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

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

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

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

Listing of shares of Coal India Limited in Stock Exchanges:

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

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

Further Divestment by Govt. of India through OFS:

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


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

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

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

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

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

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

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


Indo–US Collaboration:

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

a) Development of Coal Preparation Plant Simulator:

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

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

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

New Areas of Collaboration

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

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

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

Indo–EU Collaboration

Status of ongoing projects

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

New Areas of Collaboration

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

Indo–Australian Collaboration

VAM project under NCEF, CMPDI, on behalf of CIL, is contemplating to take up a project on mitigation and utilization of Ventilation Air Methane (VAM) at Moonidih, BCCL, with CSIRO, Australia under National Clean Energy Fund (NCEF) of Government of India. A project proposal for implementation of the project is under consideration. The project will be taken up subject to competent approval of the Government.

Other activities through international cooperation

a) CMM/CBM Clearinghouse

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

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

b) Research & Development Activities

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

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

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

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


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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



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

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

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

A. Summarized Status of Implementations of Raniganj Master Plan

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

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

ECL has given 'No Objection' for rehabilitation in the available vested land at mouza Namokesia, (31.42 Acres) at Salanpur Block which is non–coal bearing area and mouza Bijoynagar (26 Acres ) at Jamuria Block where coal is available at more than 600 mtrs depth.

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

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

i) Diversion of Railway line from unstable location:

Andal–Sitarampur Railway line of Salanpur area– As regard to diversion of Andal–Sitarampur Railway line of Salanpur Area, the work has been awarded to M/S RITES for preparation of Feasibility Study Report  (FSR) and Detailed Project Report (DPR). Survey work of around 26 km track line has been completed and M/s RITES is finalizing the report in consultation with Railway authority.

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

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

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

iii) Diversion of IOCL pipeline:

For diversion of Indian Oil Corporation Limited (IOCL) pipeline National Institute of Rock Mechanics (NIRM), Bangalore has conducted the survey work to assess the stability of pipeline. NIRM submitted survey report and subsequently NIRM was requested to conduct 2nd tier geophysical survey to assess the stability of 750 metres most vulnerable length of pipeline. NIRM have completed the 2nd phase of survey and submitted their report. NIRM will submit their final report after joint meeting with IOCL.

B. Summarized Status of Implementations of Jharia Master  Plan

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

Status of land acquisition by JRDA for rehabilitation sites

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

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

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

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

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

Status of BCCL houses under Master Plan

For this purpose, 344 houses & 1152 houses have been built in non–coal bearing zone & Families from fire & subsidence places have been shifted to these houses.

Construction of 4080 triple storied quarters (340 Blocks each of 12 units) is in progress. Construction of 4020 triple storied quarters (335 Blocks each of 12 units) is awarded.

Tender for construction of 2248 units (B,C&D type) triple storied quarters and construction of 4008 units triple storied miners quarters with R.C.C. framed structure is in process .

Status of Non–BCCL houses (54159 nos.) under Master  Plan

2352 houses have been constructed in Belgoria rehabilitation Township "JhariaVihar" in which 1169 families have shifted till 31.03.2015.

Status of Fire Schemes

Reduction in Fire Area:

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

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

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

BCCL till March, 2015 : Rs. 511.85 crores

ECL till March, 2015 : Rs. 160.79 crores.

16. Environmental Management

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

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

16.2 Pollution Control Measures and their Efficacy

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

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

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

16.3 ISO 14001 Certification

The implementation, certification and re–certification of different units of CIL against ISO:14001 (Environmental Management System) is continuing. As on 31.03.2015, 51 units and two companies (MCL & NCL) are certified under ISO:14001 standard.

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

16.4 Monitoring of land reclamation of OC mines through remote sensing

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

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

16.5 Resettlement & Rehabilitation Policy of CIL

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

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

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

16.6 Mine Closure Plans

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

17 COAL BED METHANE (CBM) / COAL MINE METHANE  (CMM) 17.1 Collaborative development of CBM prospects in Jharia & Raniganj coalfields by the consortium of CIL & ONGC.

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

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

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

17.2.1 CBM related studies:

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

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

a) Dipside of Garjanbahal block, IB Valley Coalfield,

b) Bhalumuda block, Mand–Raigarh Coalfield.

c) Mandwa block, Bander Coalfield.

17.2.2 Shale gas related studies:

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

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

17.3 Commercial development of Coal Mine Methane (CMM)

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


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


19.1 Projects on Coalbed Methane

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

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

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

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

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

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

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

19.2 Projects on Shale Gas

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

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

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

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


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

20.1 Drilling Performance in 2014–15

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

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

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

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

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

20.2 Geological Reports:

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

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

20.3 Hydrogeology

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

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

20.4 Geophysical survey

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

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

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


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

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


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

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

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

22.2 Physical performance

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

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

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

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

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

Following Coal S&T projects were completed during


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

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

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

22.4 CIL R&D Projects

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

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

The status of CIL R&D Board Projects during 2014–15 is as follows:

22.2 Physical performance

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

i) Projects on–going as on 1.4.2014 12

ii) Projects approved by SSRC during 2014–15 03

iii) Projects completed during 2014–15 03

iv) Projects on–going as on 01.4.2015 12

i) Projects on–going as on 1.4.2014 18

ii) Projects sanctioned during 2014–15 02

iii) Projects completed during 2014–15 05

iv) Projects on–going as on 1.4.2015 15

Following two new R&D projects were approved during  2014–15:

1. To find a methodology of safe liquidation in thick seams of Raniganj Coalfields: Design & Development & show–casing demonstrative trials at Khottadih colliery, ECL–CIMFR,  Dhanbad and ECL.

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

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

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

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

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

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

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


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


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

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

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

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

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

5) Deploy safety personnel for accident prevention work;

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

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

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

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

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

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

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

To implement CIL Safety Policy, the following are provided:

1. Provision of adequate funds.

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

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

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

24.2 : Accident Statistics

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

This improvement in safety is attributed to the following factors:

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

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

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

• Constant supervision and assistance from various quarters.

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

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

24.3 : Major Activities for Safety & Rescue Division of CIL

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

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

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

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

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

6. Maintenance of accidents / major incidents statistics database.

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

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

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

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

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

Safety Awareness Programme:

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

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

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

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

b) Safety slogans and signages at conspicuous places.

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

d) Animation films on safety issues.

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

26. Safety Monitoring Agencies in CIL: The implementation and monitoring of safety norms stipulated as per statute are being done on constant basis both by the line management as well as by ISO officials.  Apart from the above, there are several other agencies for monitoring safety, these are as under


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

27.1 Overall Performance

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

27.2 Trainings

i) In–house Training

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

ii) Training Outside Company (Within the Country)

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

iii) Initiatives

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

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

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

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

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

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

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

iv) Training Abroad

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

27.3 Recruitment

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

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

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


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


1. Employee Welfare

The focus of our Welfare Activities is on the welfare of our employees and their families. The coal companies are paying greater attention to the welfare of their workers. Every effort is being made to improve the living conditions of the coal miners. In order to create a sense of belonging and involvement in work, top priority is given by the management to provide housing, medical, educational facilities, sports & cultural facilities etc.

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

2. Housing

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

3. Water Supply

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

4. Medical Facilities

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

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

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

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

5. Educational Facilities

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

Coal India Scholarship Scheme (Revised – 2013)

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


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

6. Statutory Welfare Measures

. In accordance with the provision of the Mines Act 1952 and rules and regulations framed there–under, subsidiaries of Coal India Limited are maintaining various statutory welfare facilities for the coal miners such as Canteen, Rest Shelters and Pit Head Baths etc.

7. Non–statutory Welfare Measures

Co–operative Stores and Credit Societies:–

In order to supply essential commodities and Consumer goods at a cheaper rate in the Collieries, 22 Central co–operatives and 93 Primary co–operative Stores are functioning in the Coalfield areas of CIL. In addition, 158 Co­operative Credit Societies are also functioning in the Coal Companies.

8. Banking Facilities

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

9. Sports

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

10. Welfare, Development and Empowerment of Women

There is a Forum for Women in Public Sector (WIPS) Cell at the Company Headquarters in Kolkata and five subsidiary  companies viz. ECL, BCCL, CCL, SECL & CMPDI. Each  WIPS Cell is headed by a coordinator who plans and executes the various activities of the forum with the help of a duly appointed Executive Committee. The Company extends active support to various activities of WIPS comprising of welfare activities, training & development activities, seminars, cultural programmes, industrial awareness visits and health awareness programme etc for the WIPS members, women workers, their families and society at large.

Coal India Ltd and its subsidiary companies are extending full–fledged support and patronage to National Conference

Forum of WIPS held every year in February at predetermined locations by sponsorship of the event, nomination of maximum number of delegates and also by competing for the BEST ENERPRISE award. In recent years, WIPS cell has done a commendable job in reaching out to the grass–root level women employees, empowering them by suggesting gainful redeployment, training and uplifting their morale by recognizing outstanding achievement, recognizing and honouring the exceptional talent.

11. Special Cash Award

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

12. Recreational facilities

At present there are seven holiday homes in following places.

(a) Puri

(b) Digha

(c) Goa

(d) Manali

(e) Katra

(f) Ajmer

(g) Nainital

(h) Haridwar

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

13. CIL Welfare Board Meeting

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

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


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

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


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

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

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

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

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

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

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

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

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

CIL was awarded with 'International Academic Rajbhasha

Shield' in All India Official Language Conference at Goa organized by Rashtriya Hindi Academy, Rupambra on 27–10–2014.

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


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

During the year 2014–15, 39 Intensive Examination of Works/ Contracts were undertaken by CIL (HQ) and its subsidiary companies. In addition, 272 Surprise checks were carried out and 176 investigation cases were completed. Besides, 59 departmental inquiries were disposed of which resulted in punitive action against 278 officials. Such examinations/investigations have resulted in initiation of various system improvement measures.

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

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

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

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

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

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

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

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

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

Preventive Vigilance/ System Improvement

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

2. Online Bill Tracking System Implementation

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

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

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

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

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

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

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

3. System improvement suggestions:

System improvement suggestions were made in many areas:

a. Implementation of E–procurement

b. DPC for promotion

c. Procurement of explosives

d. Manual for outsourcing of Coal and OB:

e. Purchase Manual


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


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

Dr A K Dubey, Additional Secretary, MoC and Smt Sujata Prasad, Joint Secretary & Financial Advisor, MoC continued as part–time official Directors on the Board throughout the year. and being eligible they offer themselves for reappointment. The Board of Directors held 7 meetings during the year 2014–15.


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


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



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

i. Dr. R.N. Trivedi.

ii. Shri Alok Perti.

iii. Shri C.Balakrishnan.

iv. Dr Noor Mohammad.

v. Prof Indranil Manna.

vi. Shri Sri Prakash.


Shri Sri Prakash, Shri Alok Perti and Shri C. Balakrishnan, Independent Directors, resigned from the Board on 02.09.2014, 08.09.2014 & 09.09.2014 respectively. Appointment of Dr R. N.Trivedi, Dr Noor Mohammad and 40. Prof Indranil Manna, Independent Directors as directors of the company for the balance period of their tenure was placed in the AGM of the company. However shareholders of the company did not approve their appointment and hence they ceased to be directors of the company w.e.f 41. 10.09.2014.

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

Your Directors wish to place on record their deep sense of appreciation for the valuable guidance and services 42. rendered by the directors during their tenure, who ceased to be the Directors during the year.

In terms of Article 39(j) of the Articles of Association of the Company, one third of retiring Directors are liable to retire by rotation shall retire at the ensuing Annual General Meeting  


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


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


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


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


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


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


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


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


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

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


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

1. CIL (Standalone) Accounts

2. CIL (Consolidated) Accounts,

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

It is confirmed that:

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

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

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

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

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

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


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


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

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


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


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


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

1. Corporate Social Responsibility Policy: <> documents/CIL CSR Policy New Companies Act 2013 16062014.pdf

2. Vigil Mechanism: <>. aspx

3. Policy for determining Material Subsidiary:


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


Eastern Coalfields Limited (ECL)

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

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

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

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

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

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

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

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

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

With the approval of its shareholders, ECL Board had approved to issue 2,05,09,700 6% Non–convertible, redeemable, cumulative Preference Shares of X 1000/– each to Coal India Limited.

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

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

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

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


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


The following are annexed.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

xv) Corporate Governance Report.(Annexure XIV).

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

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

xviii) Observations of Auditors on Consolidated Financial Statements and Management Explanation under Sec 134(3)

(f)(i) of Companies Act 2013. [Annexure XV(B)].

For and on behalf of the Board of Directors

Sd/– S. Bhattacharya


Place : Kolkata

Date : 22nd July, 2015  

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