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You Are Here : Markets  |  Equity   |   Company Profile  |   Directors Report
Coal India Ltd(Industry :   Mining / Minerals / Metals)
BSE Code:533278NSE Symbol: COALINDIAP/E  (TTM): 11.03
ISIN Demat:INE522F01014Div Yield %:7.71EPS   (TTM) :23.41
Book Value (Rs):22.4244911Market Cap (RsCr):160275.3Face Value (Rs) :10
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The Members, Coal India Limited Kolkata.

Ladies and Gentlemen,

On behalf of the Board of Directors, I have great pleasure in presenting to you, the 42nd Annual Report of Coal India Limited (CIL) and Audited Accounts for the year ended 31st March, 2016, 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, 22,404 (as on 1st April, 2016). CIL operates through 82 mining areas spread over eight provincial states of India. Coal India Limited has 413 mines (as on 1st April, 2016) of which 207 are underground, 176 opencast and 30 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 multidisciplinary 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:

Eastern Coalfields Limited (ECL),

Bharat Coking Coal Limited (BCCL),

Central Coalfields Limited (CCL),

Western Coalfields Limited (WCL),

South Eastern Coalfields Limited (SECL),

Northern Coalfields Limited (NCL),

Mahanadi Coalfields Limited (MCL) and

Central Mine Planning & Design Institute Limited (CMPDIL).

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

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

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

a. MJSJ Coal Ltd.

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

b. MNH Shakti Ltd.

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

c. Mahanadi Basin Power Limited.

Another Company "Mahanadi Basin Power Limited" was incorporated on 2nd December, 2011. MBPL had been formed as an SPV with 100% shares held by 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 31st March’2016 was Rs 5 lakh.

d. Mahanadi Coal Railway Limited

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

Subsidiaries of SECL

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

Joint Venture of CCL

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


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

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

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

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

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

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

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


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

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

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

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


2.1 Financial Results (CIL Consolidated)

CIL is one of the largest profit making and tax & dividend paying enterprises in India. CIL and its subsidiaries had achieved an aggregate Pre-Tax Profit of Rs 21, 589.09 crores for the year 2015-16 against a pre-tax profit of Rs 21,583.92 crores in the year 2014-15. CIL as a group had achieved a post tax profit of Rs 14,274.33 crores in 2015-16 (excluding share of minority loss of Rs 0.04 crore; previous year: 0.09 crore) compared to Rs 13,726.70 crores in 2014-15. The subsidiary wise details of Pre-tax Profit of CIL are given in

Annexure 1.

Highlights of performance

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

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

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

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

Transfer to Reserves

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

2.2 Dividend Income and Pay Outs (CIL- standalone)

While the financial statements of both CIL Standalone and CIL Consolidated are presented separately, only CIL Standalone 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 the dividend income received from its five profit making subsidiaries i.e. CCL, NCL, WCL, SECL and MCL. The breakup of such dividend (interim + final) received and accounted for during the year from different subsidiaries are given in Annexure 2.

During the year CIL Standalone has paid a total dividend (by way of interim dividend) of Rs 17306.84 crores @ Rs 27.40 per share on 6316364400 number of Equity Shares of Rs 10/- each fully paid up. Out of above total dividend, the share of Govt of India was Rs 13,784.86 crores and for other shareholders, Rs 3,521.98 crores. (Earlier year - Govt of India - Rs 10414.14 crores and Other shareholders – Rs 2660.74 crores)

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

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

2.4 Management Explanation on Statutory Auditor’s Report

The statutory auditors of the company have given an unqualified report {Annexure 3(A) and Annexure 4(A)} on the Standalone Financial Statements and Consolidated Financial Statements respectively of the company for the financial year 2015-16. However, they have drawn attention under ‘Emphasis of Matter’ on certain issues. These issues under ‘Emphasis of Matter’ along with observations of the auditors elsewhere in the annexures of the audit report, are enclosed as Annexure 5 & Annexure 5(A) respectively with Management explanations thereto.


3.1 (a) Off-take of Raw Coal

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

Company-wise target vis--vis actual off-take for 2015-16 and 2014-15 are shown under Annexure 6.

Offtake could have been more, but for the following reasons:

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

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

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

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

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

Initiatives taken for enhancing off-take are as under:

• Regular co-ordination with Railway Board to optimize use of logistics resources available in the subsidiary coal companies, analyzing inputs of the subsidiaries to identify alternate source for coal movement wherever and whenever required to achieve overall sectoral targets and mitigating critical fuel requirement of consuming sectors, particularly power stations.

• Coordination with MOC for various long and short- term policy decisions to overcome coal movement constraints for power and non-power sector consumers and taking operational decisions for moving coal from various sources on contingent situations to meet critical requirements of consuming sectors, particularly power utilities etc.

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

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

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

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

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

o Three major last mile rail connectivity projects at Jharkhand, Odisha and Chhattisgarh have been brought under PMO monitoring mechanism to ensure commissioning as per the schedule.

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

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

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

a. Ease of doing business for consumers.

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

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

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

e. Transparent coal distribution.

f. State and consumer awareness.

g. Peer audit among stakeholders.

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

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

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

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

3.2 Dispatches of coal and coal products by various modes:

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

3.3 Wagon Loading

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

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

Wagon loading performance of 2015-16 vis--vis 2014-15 is disclosed under Annexure 9.

3.4 Consumer satisfaction

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

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

iii. In addition, the Washeries at BCCL, CCL, WCL and NCL have adequate crushing / sizing facilities to the tune of about 36.8 million tonnes. CIL has also initiated action to establish 15 more coal washeries with combined capacity of 112.60 Mty.

iv. Measures like picking of shale/stone, selective mining by conventional mode as 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.

v. Surface Miners have been deployed by CIL for selective mining at some of the OCP mines to improve 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 64 Surface Miners have been deployed in CIL opencast mines which are working satisfactorily.

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

vii. Subsidiary coal companies have already procured 121 Bomb Calorimeters for more accurate and transparent results of analysis of coal samples. Sampling and analysis at loading end for eligible customers availing such facility has been extended, based on which coal bills as per analyzed grades are being settled.

viii. Pursuant to the decision taken in the meeting with the 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 empaneled agencies for taking part in drawing coal samples and analyzing the same. In view of above, PUs / IPPs have selected agencies w.e.f. Dec' 2014 onwards.

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

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

xi. 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.

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

xiii. In order to ensure consumer satisfaction and resolve consumer complaints, special emphasis has been given to quality management and redressal of consumer complaint. On-line filing and redressal of complaints has been initiated Percentage of consumer complaints resolved is 99.68% [April 2015 to March 2016].

xiv. CIL has taken initiative to get NABL [National Accreditation Board for Testing and Calibration Laboratories] accreditation of main laboratories of different subsidiary coal companies. Eleven Laboratories of CIL (Two in CCL, Four in SECL, Two in BCCL and Three in MCL) has got NABL accreditation in addition to the earlier one existing at WCL.

3.5 Marketing of Coal:

Status of execution of Fuel Supply Agreements and performance of e-auction

Supply of coal was made to various consumers including Power Sector under the applicable provisions of New Coal Distribution Policy. Due to 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 FSAs has been pegged at various level 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 various Government directives and polices.

(i) For power stations, commissioned on or before 31.03.2009, 306 Million Tonnes had been considered to be supplied through 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’16 was 305 Million Tonnes.

Apart from the above, 180 Letter of Assurances have been issued to power plants by subsidiary companies of CIL, as per the recommendations of various SLC (LT) Meetings about 433.80 Million tonnes. Further, as per Presidential Directives dated 16th April’2012 and revised directive dated 17 July' 2013, a list of Power Plants having an aggregate capacity of 78535 MW was notified for signing of FSA. A total 173 TPPs (149 cases having normal LOA and 24 cases having Tapering LOA), were listed with an aggregate capacity of 78535 MW. Till 31st March’2016, 164 FSAs have been signed. The balance FSAs could not be signed for the reasons not attributable to CIL. However, MOC Office Memorandum dated 30th June’2015 directed CIL that the existing tapering linkage FSAs ceases to exist and coal would be supplied to them under separate MOUs route till 31.03.2016 or until a policy is formulated, whichever is earlier.

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

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

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

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

(vi) Under the provisions of FSA, CIL undertook import of coal for the power plants opted for taking the same through CIL for the year 2015-16. CIL received an order of about 3.5 LT of imported coal for the first half year (Apr 15-Sep15) from two power producers. The ordered quantity has been delivered through MMTC. There is no further order of imported coal. Against import order of about 5 LT for 2014-15, CIL has supplied 4.83 LT out of which 3.3 LT of imported coal was supplied within March 2015.

(vii) Under Forward E-Auction scheme during the year ended Mar’16, quantity allocated was 5.916 Million Tonnes as against 3.593 Million Tonnes allocated in the last year. The notional gain through Forward E-auction over & above the notified price was 29.44% during the year 2015-16. During the period under review, 57.405 Million Tonnes of coal was allocated under Spot E- auction to the successful bidders as against 45.211 Million Tonnes of coal allocated during the last year. The notional gain through Spot E-auction over & above the notified price was 33.74% during the year 2015-16.

3.6 Coal Beneficiation

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

In addition to the above, CIL has planned to set up 15 new Washeries with state-of-the-art technologies in the field of coal beneficiation with an aggregate throughput capacity of 112.6 MTY. Out of the 15 new washeries, 6 are planned to wash coking coal with a cumulative capacity of 18.6 Mty, 4 of which are at different stages of construction and LOI has been issued for one.LOA/LOIs has been issued for 3 new non-coking coal washeries out of the balance 9 new non-coking coal washeries with a total capacity of 94.0 MTY.

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

3.7 Stock of Coal

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

3.8 Trade Receivables

Trade Receivables i.e. net coal sales dues outstanding as on 31.03.2016, after providing Rs 2220.20 crores (previous year Rs 2510.32 crores) for bad and doubtful debts, was Rs 11463.70 crores (previous year Rs 8521.88 crores) which is equivalent to 1.27 months gross sales of CIL as a whole (previous year 1.07 months). Subsidiary-wise break-up of trade receivables outstanding as on 31st March 2016 as against 31st March 2015 are shown in Annexure 11.

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

During the year 2015-16, CIL and its Subsidiaries paid/adjusted Rs 29,084.11 crores (previous year Rs 21,482.21 crores) towards Royalty, Cess, Sales Tax and other levies as detailed below:-

Figures in Rs Crores
2015-16 2014-15
Royalty 8,209.25 7,760.10
Additional Royalty (MMDR Act) 434.42 -
Cess on Coal 1,590.67 1,457.41
State Sales Tax / VAT 2,444.75 1,997.89
Central Sales Tax 1,144.79 996.11
Stowing Excise Duty 525.67 485.62
Central Excise Duty 3,647.00 3,853.58
Clean Energy Cess 9,980.13 4,198.93
Entry Tax 259.37 206.68
Others 848.06 525.89
Total 29,084.11 21,482.21

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


Raw coal production and production from underground and opencast mines.

Production of raw coal during 2015-16 was 538.754 million tonnes against 494.238 Million Tonnes produced in 2014-15. Coal production from underground mines in 2015-16 was 33.786 million tonnes compared to 35.042 million tonnes in 2014-15. Production from Opencast mines during 2015-16 was 93.73% of total raw coal production. Subsidiary-wise production, Production from underground and opencast mines and production of washed coal is disclosed under Annexure 13.

Reasons for less production than the target 2015-16:

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

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

(ii) In ECL, Rajmahal OCP was affected due to R&R issues as the demands of Lalmatia villagers are beyond CIL’s policy and Coal stock has increased to 5.1 MTs against 3.45 MT last year due to non-lifting of coal by different power utilities.

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

Washed Coal (Coking) Production

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

Overburden Removal

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

Future Outlook

CIL has envisaged a coal production of 908.10 MT in the year 2019-20 with a CAGR of 12.98% with respect to 2014-15. In the terminal year of XII Plan (2016-17), the target of coal production has been pegged at 598.61 MT with an annualized growth of about 11.6 %. In 2017-18, the envisaged coal production projection is to the tune of 660.7 MT with a growth of about 10.5 %.

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


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


The overall system capacity utilization for the year 2015-16 has worked out to be 99.87%. It was 84.36 % during 2014-15. Subsidiary-wise details for the year 2015-16 vis--vis 2014-15 are disclosed under Annexure 15.


7.1 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 2015-16 for building an additional coal production capacity to the tune of 96 MTY. During the period, 260 reports were prepared including 17 Geological Reports, 26 Projects Reports, 167 Other Reports (included 3 Master Plans of Coalfields and 3 Operational Plans of Opencast mines) and 50 EMPs (including 16 Form-I).

7.2 Project Implementation:

a) Projects Completed During the year 2015-16:

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

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

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

c) Status of Ongoing Projects:

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

Status of Ongoing Projects Costing Rs 20 Crores and above

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

Reasons for the Delay:

Mining Projects:

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

Non Mining Projects:

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

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

a) No Advance Action Proposal has been sanctioned by CIL Board during the year 2015-16.

b) Projects sanctioned by CIL Board

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

c) Non Mining Projects Sanctioned by CIL Board:

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

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

d) Projects Sanctioned by Subsidiary Company Boards:

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

7.4 Revised Project/RCE Sanctioned by CIL Board:

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

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

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

7.5 Key Strategies:

(i) Critical Railway Links:

There are few coalfields in the country which have huge production potential but are bereft of rail linkages for evacuation of the 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.

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

(ii) Acquisition and Possession of land:

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

(iii) WEB Based Online Monitoring System:

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

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

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

However, the realisation of the approved capacity will depend on timely acquisition of land, expeditious forest & environmental clearances and creation of evacuation facilities for which concerted efforts of CIL, Railways and State authorities are in place.

Major Challenges

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.


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

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

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

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

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

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

• Various energy conservation measures like procurement of energy efficient illumination system, use of higher starred rating ACs, installation of energy meters / power factor meters / demand controllers for monitoring and control of energy, addition / replacement of power capacitors at suitable locations for improvement of power factor, extensive use of Arial Bunch Conductors, reduction in transmission & distribution losses, energy conservation measures in pumping system 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 above, CIL / Subsidiary Companies are also pursuing use of alternative energy sources. Various steps have been taken for utilizing solar power as an alternate sources of energy, some of which are as stated below:

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

• Apart from one roof top solar plant (grid-connective) of 200 kWp installed on 01.09.2014 in CMPDIL HQ Campus, Ranchi, initiatives have already been taken for another 3 such installations in the CMPDI RIs (Regional Institutes) with 80 kWp at RI-I, 30 kWp at RI-II and 50 kWp at RI-VI respectively.

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

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

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


Overall Capital Expenditure during 2015-16 was Rs 6,123.03 crores as against Rs 5,173.49 crores in previous year.Capital Expenditure incurred during 2015-16 is102.21% of BE (99.01% in 2014-15).Subsidiary-wise details of which are given in Annexure 17.


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

(i) 800,00,00,000 Equity Shares of Rs 10/- each (Previous Year 800,00,00,000 Equity Shares of Rs 10/- each) 8000.00 crores
(ii) 90,41,800 Non-cumulative 10% Redeemable Preference Shares of Rs 1000/- each (Previous Year 90,41,800 Non-cumulative 10% Redeemable Preference Shares of Rs 1000/- each) 904.18 crores
Total 8904.18 crores

Listing of shares of Coal India Limited in Stock Exchanges:

The shares of Coal India Ltd. is listed in two major stock exchanges of India, viz. Bombay Stock Exchange and National Stock Exchange on and from 4th November, 2010.

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

Sl No Financial Year of Disinvestment % of shares disinvested No. of shares disinvested Mode
1 2010-11 10.00% 63,16,36,440 IPO
2 2013-14 0.35% 2,20,37,834 CPSE-ETF
3 2014-15 10.00% 63,16,36,440 OFS
4 2015-16 0.001% 83,104 CPSE-ETF

Hence, the number of shares held by Govt. of India as on 31.03.2016 stood at 5,03,09,70,582 i.e. 79.649% of the Total share capital.

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

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


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

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

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

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


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

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

• 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, improvement in 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, subsidence monitoring, environmental control, overseas ventures in coal mining.

CIL aims to acquire suitable technology through international bidding. Bilateral cooperation is also being 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 2015-16.


Indo-US Collaboration:

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

a) Development of Coal Preparation Plant Simulator

M/s Sharpe International LLC, USA (SI) was awarded the work in October 2009 for development of Coal Preparation Plant Simulator. Total work was containing 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.

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

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

In response to communication from CMPDI, Mr. Mohanty, vide email dated 19th March' 2016, communicated that detailed proposal would be submitted to DoE & MoC, shortly.

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.

In the last CWG meet held in USA on 16th Sept 2015, Prof. Yoon of Virginia Tech University (VTU) informed that the technologies proposed earlier have been licensed to different companies and are available commercially. He also pointed out that VTU had developed a Hydrophobic-Hydrophylic process (HHS) for Fine Coal Cleaning and would be submitting a proposal on the same. The proposal is awaited. CMPDI requested Prof Yoon vide email dated 2nd March 2016 to send details of the technology of HHS for fine coal beneficiation and its commercial availability. The reply is awaited.

New Areas of Collaboration

a) Underground Coal Gasification (UCG): UCG is one of the key areas under lndo-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.

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

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

b) Planning large capacity opencast mines: The National Energy Technology Laboratory (NETL), USA has been entrusted with the responsibility for identifying suitable US agencies for cooperation in this area. As advised by US side, M/s Norwest Corporation and M/s Art Sullivan Mine Services were contacted by email on 8th September 2014 and response from both was received. Subsequently, the subject of "large capacity opencast mine planning, norms and standard, safe designs and dump optimization" was finalized with M/s Norwest Corporation. CMPDI received the proposal from M/s Norwest Corporation on 29th Sep.’15 that includes cost estimates. The proposal was routed for legal vetting and financial evaluation at CMPDI. Subsequently, the issue was also discussed during the visit of team from US consulate on 26th Feb' 2016 at CMPDI led by Consul General Mr. Craig. L. Hall, who assured for help in the matter.

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

c) Mine Rehabilitation & Reclamation of Indian Coal mines: 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 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 US Side to contact M/s Norwest Corporation & M/s Art Sullivan Mine Services for further assistance.

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

d) Advanced Dry Coal Beneficiation technology:

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

Indo-Australian Collaboration

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

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

New Areas of Collaboration

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

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

Indo-Japan Coal Working Group

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

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

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

Indo-Poland Collaboration

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

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

2) Mechanised shaft sinking/deepening/ drift drivage, and

3) Dealing with mine fires in Jharia Coalfield.

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

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

2) For mechanised shaft sinking/deepening/drift drivage, production subsidiaries of CIL may be requested to intimate their Polish counterpart whenever such tenders are being floated.

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

Indo-EU Collaboration

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

• Innovative mining technologies and environmental friendly solutions.

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

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

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

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

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

A proposal titled "Introduction of a new underground mining technology at North-East Coalfields in Assam, India" was placed before the 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 by the European Commission to a Spanish Consortium led by M/s AITEMIN. The members from the Spanish Consortium visited the North-East Coalfields in Assam, India from 10-14 Feb. 2014 for preliminary discussions and data collection. The feasibility study report was submitted to the European Commission in Oct. 2014. Recently, in Dec. 2015, soft copy of the report has been received through M/s AITEMIN. However, the feasibility study report is yet to be made available to CIL/ CMPDI by the European Commission.

New Area of Collaboration:

During 8th India-EU CWG meeting held in Chennai from 28th – 29th Nov.’13, a presentation was made by CMPDI on reclamation 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 9th India-EU CWG meeting held in Germany from 10th – 11th Sept.’14. However, offer of assistance is still awaited from the EU side. Also, a meeting was scheduled on 8th July, 2016 under Indo-German which could not be held. A similar project "Design and development of post-closure land reclamation plan for sustainable use of mined out area in Indian Coal Mines" is now proposed to be taken through M/s Norwest Corporation under Indo-US CWG.

Other activities through international cooperation:

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

b) CMM/CBM Clearinghouse: US Environmental Protection Agency (USEPA) representative Ms Felicia A Ruiz, Climate Change Division, US Environmental Protection Agency, Washington DC along with Mr Jonathan Kelafant visited CMPDI (HQ) on 9th – 11th February, 2016. During the visit, activities of India CMM/CBM Clearinghouse was also reviewed and appreciated by USEPA. Under GMI initiative a Pre-feasibility study on pre-mine methane drainage feasibility for (a) Sawang UG mine, East Bokaro Coalfield in 2014 and (b) Chinakuri UG mine, Raniganj Coalfield in 2016 has been undertaken by the USEPA Consultant under the Coalbed Methane Outreach Program (CMOP) and during the visit Pre-feasibility study on CMM drainage at Chinakuri Mine (ECL) was also deliberated along with mine officials. Mr Craig L Hall, Consul General, US Consulate, Kolkata also visited India CMM/CBM Clearinghouse on 26th February’2016 and appreciated the accomplishments.

c) Research & Development Activities

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

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



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

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

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

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

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

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

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

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


Revival of Talcher Unit of FCIL, through Joint Venture Company

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


The Master Plan for dealing with fire, subsidence and rehabilitation in the leasehold of Bharat Coking Coal Limited (BCCL) and Eastern Coalfields Limited (ECL) was approved on 12th August 2009 by Govt. of India with an estimated investment of Rs 7,112.11 crores for Jharia Coalfields and Rs 2661.73 crores for Raniganj Coalfields. Implementation period has been delineated as 10 years.

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

Jharia Rehabilitation and Development Authority (JRDA) is the implementing agency for rehabilitation of non-BCCL people under 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 Master Plan in the leasehold of Eastern Coalfields Ltd.

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

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

According to the approved Master plan, about 896.29 ha. (2214 Acres) land would be required for resettlement of non-ECL families. ADDA has submitted a list of vested lands in different patches to ECL authority with a total area of 929.62 Acres requiring NOC for construction of Rehabilitation Township. Out of this for 929.62 acres of land, NOC has been issued by ECL authorities for a total of 401.96 acres of land. ECL requested ADDA to supply Mouza Maps and a plan showing the position of all vested lands with latitude/ longitude to examine the mineable coal reserves in the balance portion of the land. ADDA informed that Detailed Project Report (DPR) to be prepared for 1st phase of rehabilitation within 209 acres of land where about 16,700 dwelling units with other infrastructures and amenities can be provided.

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

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

ADDA informed that DPR of the 3 roads, 2 in Salanpur Area at Mohanpur and Gourangdih-Begunia and 1 at Satgram Area at Ratibati has been sent by ADDA to Additional. Chief Secretary, C&I Dept., Govt. of W.B. duly vetted by Chief Engineer, Western Zone, P.W.D. for approval. ECL also informed that it has given acceptance of estimate of Rs 15.42 Crores for diversion of DB Roads from subsidence prone area of Raniganj Coalfields.

ii) Diversion of Railway line:

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

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

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

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

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

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

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 for delineation of surface coal fires in Jharia Coalfield. NRSC has submitted their report in which they have concluded that the present fire area in the coalfield is only 2.18 which includes both over burden dump fire and active fire. In the Master Plan, total surface area affected by fire described as 8.9 NRSC has deduced these findings from the State of Art, Satellite based technology. Action is being taken by BCCL for dealing with fire as stipulated in the Approved Master Plan. NRSC has been requested to repeat the satellite TIR survey. NRSC has confirmed for survey in June 2016.Once the finding of NRSC are submitted after the survey is completed, BCCL would improvise the fire action plan for speedier liquidation of fire area.

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

3360 houses have been constructed in Belgoria Rehabilitation Township "Jharia Vihar" in which1528 houses are allotted to affected non-BCCL families and 1374 families are shifted. Construction of 4000 units are in progress out of which 1008 units are completed. Letter of acceptance has been issued by JRDA for construction of 4000 units more. For further 10,000 units, JRDA is processing tendering procedure.

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

Status of land acquisition by JRDA for rehabilitation sites

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

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

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

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

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


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

EIA/EMPs for all the new and expansion projects as per EIA Notification SO 1533 dated 14th September, 2006 of MoEF are prepared for peak and normative capacities and environmental clearance is obtained. During the year 2015-16, CMPDI has prepared a total of 16 Form-I and formulated 34 Draft EIA/EMPs. 23 environmental clearances were also obtained from MoEF for different Projects/Group of Mines, Washeries and Sand Mine Project of CIL during the year 2015-16.

15.2 Pollution Control Measures and their Efficacy

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

(A) Air Pollution Control Measures:

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

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

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

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

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

d) Blacktopping, strengthening of coal transportation roads are regularly and scientifically done.

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

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

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

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

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

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

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

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

(B) Mine Water Management:

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

(C) Noise Pollution Control Measures:

For control of noise pollution, following measures are adopted:

i) Proper maintenance of equipment to minimize vibration.

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

iii) Controlled Blasting & blasting in only day time.

iv) Use of Surface Miner, Continuous Miner & High Wall mining which extract coal without blasting.

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

(D) Land Reclamation:

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

• Eco-restoration: For effective Bio- reclamation of disturbed land, scientific studies are carried out to select suitable species of plants for each coalfield and sustainable sequence of reclamation from grass to shrubs to trees. Forest Research Institute (FRI) have been engaged by CIL for sharing their expertise in the field of eco-restoration in the reclaimed areas. ECO restoration site developed in Damoda, Tetulmari of BCCL, with technical guidance of FRI.

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

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

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

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

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

CIL has signed an MoU with National Environmental Research Institute(NEERI), Nagpur on 3rd Dec. 2015 to carry out studies, monitoring and collaborative research work for "Sustainable Coal Mining in CIL".CIL is in the process of finalization of Carbon assessment study in SECL and NCL through NEERI. NEERI is also studying on the effectiveness of supplying de-shaled/dry-beneficiated / washed coal (reduction in ash content by 5-6%) to power plants following all pollution control measures.NEERI will submit environment management plan for mitigation of impact on regional environmental quality due to supply of deshaled / dry –beneficiated coal to power plants in context of prevailing pollution control practices.

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

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

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

In the 1st phase, CIL is going to set up 2x100 MW Solar Power Plants in the state of Madhya Pradesh. In the 2nd Phase CIL is going to develop a capacity of 600 MW in the Solar Parks of Madhya Pradesh, Chhattisgarh, West Bengal and Maharashtra for which NIT has already been floated by SECI.

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

15.3 ISO 14001 System

The implementation, certification and re-certification of different units of CIL against ISO: 14001 (Environmental Management System) is continuing. As on 31st March’2016, a total of 29 units and two companies (MCL & NCL) are certified as per ISO: 14001 standards.

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

15.4 Assessment of Impact of Coal Mining in different coalfields

Vegetation cover mapping of six coalfields viz. Karanpura, East Bokaro, West Bokaro, Korba, Bander and Singrauli coalfields based on satellite data have been completed during the year 2015-16 for assessing the regional impact of coal mining on land use / vegetation cover in the span of 3 years to take remedial measures required, if any.

15.5 Resettlement & Rehabilitation Policy of CIL

With changing aspirations of Project Affected Persons (PAPs) and for 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 socio- economic 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 Govt.

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 affected displaced family etc.

15.6 Mine Closure Plans

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


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

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

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

16.2. CBM related studies:

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

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

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

a) Subhadra West block, Talcher Coalfield,

b) Dolesara block, Mand-Raigarh Coalfield.

c) Brahmanbill block, Talcher Coalfield.

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

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

16.3 Shale gas related studies:

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

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

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

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

16.4 Commercial development of Coal Mine Methane (CMM)

Commercial development of CMM is a priority area both at the Govt. and Coal Industry level. MoC has made CMPDI the Nodal Agency for development of CMM in India. Successful implementation of the Demonstration Project at Moonidih mine of BCCL, Jharia Coalfield has already proved the efficacy of the process in Indian Geo-mining condition and five suitable areas within CIL mining leasehold areas were identified. To expand the scope of development of CBM in CIL areas, further studies for "Assessment of CMM Potentiality in CIL Command Area" has been undertaken. Presently detailed exercise has been initiated for recovery of CMM in ECL command area for which an area of 57 Sq. Km has been delineated.

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

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

S&T project on "Capacity Building for Extraction of CMM Resource within CIL Command Areas, being jointly implemented by CMPDI and CSIRO, has been approved under Coal S&T project of MoC. The project is of 3 years duration with effect from 23rd March, 2016.

16.5 Project on VAM

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

16.6 CMM/CBM Clearing house in India

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

Under GMI initiative, a Pre-feasibility study on pre-mine methane drainage feasibility for (a) Sawang UG mine, East Bokaro Coalfield in 2014 and (b) Chinakuri UG mine, Raniganj Coalfield in 2016 has been undertaken by the USEPA Consultant under the Coalbed Methane Outreach Program (CMOP) and during the visit of USEPA officials on 9th February, 2016 the Pre-feasibility study on CMM drainage at Chinakuri Mine (ECL) was deliberated along with mine officials. Mr. Craig L Hall, Consul General, US Consulate, Kolkata also visited India CMM/CBM Clearinghouse on 26th February’2016 and appreciated the accomplishments.

17 SAARC Workshop Program "Experience Sharing on CBM, UCG & Coal Extraction Methodology

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


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


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

19.1 Drilling Performance in 2015-16

CMPDI deployed its departmental resources for detailed exploration of CIL/Non-CIL blocks whereas State Govts. of MP and Odisha 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 2015-16, out of which, 62 were departmental drills.

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

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

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

Due to non-availability of forest clearance, work was stopped in 49 blocks. Due to lack of forest clearance and adverse law & order, about 4.85 lakh meter of drilling could not be carried out in departmental and outsourced blocks in 2015-16.

19.2 Geological Reports

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

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

19.3 Hydrogeology

Hydro geological studies of a number of mining projects/ mines were taken up for preparation of ‘Groundwater Clearance Application’ for CGWA approval and EMP clearance. Hydro geological studies for 29 mining projects/ mines/cluster of mines in BCCL, CCL, WCL, SECL and MCL were completed during 2015-16.

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

Hydrogeological studies in 10 projects of WCL, SECL and MCL have been carried out for water supply arrangement to mines, colony and villages. Assessment of impact of coal mining on groundwater system in coalfields of CIL using CGWB and CMPDI data have also been considered.

19.4 Geophysical survey

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

During the year 2015-16, a total of 1, 75,503 depth metre of geophysical logging has been carried out in CIL and Non-CIL projects with multi-parametric geophysical logging equipment. Out of this, 81,035 depth metre of logging was done by five departmental geophysical logging units and 94,468 metre of logging was carried out by contractual agencies.

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

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


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

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

During the year 2015-16, 33 outside consultancy jobs worth

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


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

The R&D activity in Coal sector is administered through an apex body 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.

CMPDI acts as the Nodal Agency for co-ordination of research activities in the coal sector, which involves identification of 'Thrust Areas' for research activities, identification of agencies which can take up the research work in the identified fields, processing the proposals for Government approval, preparation of budget estimates, disbursement of fund, monitoring the progress of implementation of the projects, etc.

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

21.2 Physical performance

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

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

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

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

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

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

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

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

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

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

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

Modelling of airborne dust in opencast mines - National Institute of Technology, Karnataka, Surathkal.

21.3 Financial Status

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

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

21.4 CIL R&D Projects

For in-house R&D work of CIL, R&D Board headed by Chairman, CIL is also functioning. CMPDI acts as the Nodal Agency for processing the proposals for CIL approval, preparation of budget estimates, disbursement of fund, monitoring the progress of implementation of the projects, etc. So far, 73 projects have been taken up under the funds of CIL R&D Board, out of which 58 projects have been completed till March, 2016.

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

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

*Note: 3 (Three) Projects were approved, in principle, subject to certain conditions imposed by CIL R&D Board. Revised proposals for these projects were not submitted till 31.03.2016 for examination and approval and hence not considered as on-going projects as on 1.4.2016.

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

1. Development of guideline for prevention & mitigation of explosion hazard by risk assessment and determination of explosibility of Indian coal incorporating risk based mine emergency evacuation and re-entry protocol - ISM, Dhanbad; CIMFR, Dhanbad; CIL and SIMTARS, Australia

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

3. Abatement and utilization of ventilation air methane from a working underground degree-III coal mine in India - CMPDI, Ranchi and Commonwealth Scientific and Industrial Research Organization (CSIRO), Australia

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

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

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

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

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

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


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

1. GPS based Operator Independent Truck Dispatch (OITDS) with high speed Data and Voice communications is implemented in all eleven opencast projects to optimize 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 was taken up and till date more than 8000 such installation is operational in various subsidiaries of CIL.

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

4. Electronic Surveillance through CCTV at Weighbridges has been taken up and more than 800 such installation at various subsidiaries are in operation.

5. Digitization of Old documents at CIL HQ was undertaken and successfully completed under the Project DDMA (Document Digitization and Archival Management) to create a knowledge base. More than 80 Lakhs of document have been digitized and with introduction of Electronic file movement, CIL HQ is likely to become paperless and make its contribution for Greener India.

6. 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.

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

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

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

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

11. 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 grievances management, Investor centre, Customer corner, Vigilance etc. The portal also facilitates for receiving on-line applications FMTs, link to E-procurement and E-auction.

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


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

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

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

23.2: Safety Policy of CIL:

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

1) Operation and system will be planned and designed to eliminate or materially 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 wholly 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, to ensure improved safety in operations as per prevailing geo-mining conditions to prepare the units for onset of monsoon, to fulfill implementation of decisions taken by the 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 the Safety Policy and Plans through the 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 the living conditions and help all the employees both in and outside the mines.

To implement CIL Safety Policy, the following are provided:

1. Provision of adequate funds for safety.

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

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

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

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

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

23.3: Accident Statistics

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

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

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

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

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

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

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

4. Mechanisation of UG drilling.

5. Phasing out manual loading in UG mines.

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

1. Design of strata support and reinforcement systems.

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

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

4. Monitoring of strata by strata monitoring devices.

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

1. Expedite construction of sectionalisation stoppings.

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

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

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

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

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

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

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

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

Annexure 18.

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

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

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

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

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

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

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

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

1. Formulation of Mine-specific Traffic Rule.

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

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

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

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

6. Procurement of advanced surveying / slope monitoring devices.

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

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

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

o Safety talks at the beginning of the shift.

o Safety slogans and signages at conspicuous places.

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

o Display of Animation films on safety issues.

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

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

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

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

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

24. Rescue Services for Emergency Response System in CIL:

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

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

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

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

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

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

25. SafetyMonitoring Agencies in CIL:

The implementation and monitoring of Safety norms stipulated as per Statute are 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:

At Mine Level • Workman inspectors: as per Mines Rule- 1955
• Safety Committee: constituted as per Mines Rule-1955
At Area Level • Bipartite/Tripartite Safety Committee Meeting
• Safety Officers’ Coordination Meeting
At Subsidiary HQ Level • Bipartite/Tripartite safety Committee Meeting
• Area Safety Officers’ Coordination Meeting
• Inspections by ISO Officials
At CIL (HQ) • CILSafetyBoard.
/ Corporate Level • CMD’s meet.
• Director (Tech)’s Co-ordination Meeting.
• National Dust Prevention Committee Meeting.
At Ministerial / National Level • Standing Committee on Safety in Coal Mines.
• National Conference on Safety in mines.
• Various Parliamentary Standing committees.


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

26.1 Overall Performance

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

26.2 Trainings

i) In-house Training

The In-house trainings were organized at subsidiary HQs, 27 Training Centres and also 102 VT Centres across Coal India and also at IICM. Respective HRD Divisions 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 Industry. Details of in-house Training imparted during 2015-16 are listed below:-

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

ii) Training Outside Company (Within the Country)

Besides in-house training at our Training Institutes, VT centers and IICM, employees were trained within the country at reputed training institutes, in their respective field of operations and also for supplementing our 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:-

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

iii) Training Abroad

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

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

iv) Initiatives

• CIL has been recuring fresh and dynamic young bloods in different disciplines for the last few years. A special attention has been given in grooming 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 by 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 MTs of Excavation and E &M discipline are posted in different Coal Mines in order to provide them proper exposure to Mining Operations as well as Mining Equipment (both surface and underground) and to make them conversant with the Mining activities, 5 weeks intensive training for 40 AMs/MTs was organized at Indian School of Mines, Dhanbad, the premier Mining Institute of our country during the year 2015-16.

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

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

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

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

26.3 Recruitment

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

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

During the financial year, CIL continued with the campus recruitment of Management Trainees in various disciplines for 610 vacancies, selected 420 candidates until March 2016, selection process is underway to fill up the remaining vacancies. The selected candidates from campuses would be offered appointment to join the company in July-August 2016 on passing their final course.

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

27. Manpower

27.1 The total manpower of the Company including its subsidiaries as on 31.03.2016 is 3,22,404 against 3,33,097 as on 31.03.2015. Subsidiary company wise position of manpower is disclosed as Annexure 19.

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

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

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


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

Strikes and Bandhs

During 2015-16, a one day Nation-wide General Strike was called by eleven Central Trade Unions on 2nd September, 2015 due to which company lost 131568 mandays and 302685 tonnes of production. There were no bandhs during 2015-16.

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



At the time of Nationalisation, there were only 1, 18,366 houses including sub-standard houses. The availability of these houses has increased to 3, 98,350 (upto 31.03.2016). The percentage of housing satisfaction has now reached 100%.


As against 2.27 Lakhs population having access to potable water at the time of Nationalisation in 1973, presently a populace of 19, 73,887 Lakhs (upto 31.03.2016) has been covered under water supply scheme.


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

There are 80 Hospitals with 5,431 Beds, 399 Dispensaries, 557 Ambulance and 1220 Doctors including Specialists in CIL and its subsidiaries to provide medical services to the employees. Besides 5 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.

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


The subsidiary companies of CIL have been providing deficit grant and infrastructure facilities to certain renowned schools like 44 DAV Public Schools, 14 Kendriya Vidyalaya, 1 Delhi Public School to impart quality education.

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

Coal India Scholarship Scheme (Revised – 2013)

In order to encourage Sons and Daughters of the employees of Coal India Limited, two types of Scholarship namely Merit and General Scholarship, are being provided every year under the prescribed terms and conditions.

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

5) 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.

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

In order to supply essential commodities and Consumer goods at a cheaper rate in the Collieries, 16 Central Co-operatives and 99 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.

7) Banking Facilities:-

The Management of Coal Companies are providing infrastructure facilities to 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 480 Bank/ Extension Counters and they are also encouraged to practice thrift for the benefit of their families.

8) Sports:-

Structured sports policy of CIL and its subsidiaries was approved by CIL Board 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.

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

a. Sports Academy and Sports University at Ranchi:-

An MoU has been signed on 17th June 2015 between the Govt. of Jharkhand and Central Coalfields Limited for establishing fifteen Sports Academies and Sports University at the existing World class stadium/infrastructure in Hotwar, Ranchi where National Games 2011 was organized.

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

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

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

Table Tennis Academy will be established in collaboration with Sport Authority of India at Kolkata. The academy will be a standard residential Table Tennis Academy with all modern training facilities.

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

i. Title Sponsorship of Hockey India League 2016 held from 18th Jan. 2016 to 21st Jan.2016. Matches were played at six venues - Ranchi, Bhubaneswar, Chandigarh, Lucknow, Delhi and Mumbai.

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

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

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

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

9) Welfare, Development and Empowerment of Women

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

Coal India Ltd and its subsidiary companies are extending full support and patronage to National Conference of Forum of WIPS held every year in the month of February at predetermined locations by sponsorship of the event, nomination of maximum number of delegates and also by competing for the BEST ENTERPRISE Award. In the recent years, WIPS cell have done commendable work in reaching out to 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.

10) Special Cash Award:-

During 2014-15, an amount of Rs 1,00,000/- has been provided as Special Cash Award to 18 meritorious Sons and Daughters of employees of CIL(Hqrs.), Kolkata Desk Offices of subsidiary companies @7,000/- for 05 (Five) students who have secured 90% or above marks in the Class-XII Board level examination and @5,000/- for 13(Thirteen) students who have secured 90% or above marks in the Class-X Board level examination.

11) Recreational facilities:-

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

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

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

12) CIL Welfare Board Meeting:-

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

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


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


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 the Official Languages Act, Rules and Regulations. For this purpose periodical meetings and reviews are done regularly by the top officials. Works carried out during the year under review towards implementation of Rajbhasha is appended below:- Hindi workshops were organized regularly with a view to create working atmosphere of Rajbhasha and to remove hesitation of officers & employees to work in Hindi. During the year, large number of employees participated in such workshops which refresh their knowledge of Hindi words, Hindi noting& drafting in their regular Official works.

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’2015. During the Hindi Fortnight various Hindi Competitions such as Hindi noting and drafting, Hindi Self writing, Hindi Dictation, Hindi Translation, Hindi typing and Lectures were organized where a large numbers of employees participated enthusiastically. The winners were honoured with Cash Awards & Certificates. This create a consciousness among employees to use Rajbhasha in official Work. It is notable that Regional Sales Offices situated at different cities were granted sufficient fund as per their sizes to celebrate Hindi Diwas & Hindi week/fortnight as per their practice.

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

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

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

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

CIL bags 1st Prize of TOLIC (PSUs), Kolkata: Under the Rajbhasha Award Scheme of Govt. of India, Honourable 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 29.8.2015.

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

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

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

Inspection of offices is a part of the implementation. Officials of Rajbhasha department, CIL (HQ.) reviewed the status of implementation of the 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 Vigilance Departments in CIL and 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 2015-16, 115 Intensive Examination of Works/ Contracts (Major works) were undertaken by CIL (HQ) and its subsidiary companies. In addition, 244 Surprise checks were carried out. Besides, 66 Departmental Inquiries were disposed of which resulted in punitive action against 310 officials. Such examinations/investigations have resulted in initiation of various system improvement measures.

As per the directives of Central Vigilance Commission, Vigilance Awareness Week – 2015 has been observed in Coal India Limited, IICM- Ranchi, and North Eastern Coalfields-Margherita & Regional Sales Offices across the country w.e.f. 26.10.2015 TO 31.10.2015 emphasizing the theme of "Preventive Vigilance as a tool of Good Governance". As part of the function, following major activities were organised: (i) The pledge was taken during the Board Meeting as well as different Departments.

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

(iii) For the employees of CIL, Speech Competition, Quiz Competition, Essay writing competition on "Youth can change the corruption scenario of society" was held on 28.10.15 (11 AM - 12.30 PM), feedback from employee on transparency and governance in organizational activities were sought and suggestions for System improvement taken.

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

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

(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 organization were taken. Feedback related to transparency, fairness and customer satisfaction were obtained.

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

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

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

ii) Online Bill Tracking System Implementation at CIL

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

iii) Implementation of E-procurement Reverse Auction

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

iv) System improvement suggestions:

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

e. Purchase Manual

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

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


No employee received remuneration either equal to or in excess of the limits prescribed under Rule 5(2) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 during 2015-16. 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 21).


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

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

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

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

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

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

35. Composition of Audit Committee

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

36. Composition of CSR Committee

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

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

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

i. Ms. Loretta M Vas

ii. Dr. S.B.Agnihotri

iii. Dr. D.C.Panigarhi

iv. Dr. Khanindra Pathak

v. Shri Vinod Jain

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

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

39. Recommendation of Audit Committee by the Board.

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

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

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

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

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

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

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

43. Contracts or Arrangements with Related Parties

Related party transactions made with the subsidiary companies and that all such transactions were exempted under Regulation 23(5)(a) and (b) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 being transactions between two government companies and transactions entered between a holding and its wholly owned subsidiaries whose accounts are consolidated with such holding company and placed before the shareholders at the general meeting for approval. However, the remuneration paid to Key Managerial Personnel is being disclosed separately in point no VI of Annexure 22.

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

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

45. Familiarization programme of Board Members.

Board of Directors are fully briefed on all business related matters, associated risk, new initiatives etc. of the company. The Board of directors were also briefed about the provisions of Companies Act 2013, (Prohibition of Insider Trading) Regulations, 2015 and SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015. As per Regulation 25 of SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015, the listed entity shall familiarize the independent directors through various programmes about the listed entity, including the following:

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

(b) Business model of the listed entity;

(c) Roles, rights, responsibilities of independent directors; and

(d) Any other relevant information.

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

46. Sexual Harassment of Women at the Workplace

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) is working at every subsidiary and office of Coal India Limited to redress complaints regarding sexual harassment. All women employees (permanent, contractual, temporary, trainees) are covered under this policy.

No sexual harassment complaint was received during the year.


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) and Central Mine Planning & Design Institute Limited,however, for the overseas subsidiary viz. Coal India Africana Limitada, which was incorporated under Mozambique Commercial Code 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 the 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 judgements and estimates made that are reasonable and prudent so as to give a true and fair view of the 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 such controls are adequate and were operating effectively during the year ended 31st March’2016.

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


The statement containing the salient features of the financial statements 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 24. In terms of General Circular No.2/2011 dated 8th Feb 2011 from Ministry of Corporate Affairs, the Annual Accounts of subsidiary companies shall be made available to the shareholders seeking such information.


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


In pursuance to Section 204 of Companies Act 2013, company had conducted Secretarial Audit for the year 2015-16 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 is included in the Corporate Governance Report. The observations of Secretarial Auditor and Management Explanation are enclosed as Annexure 25.


A Risk Management Charter has been approved by the CIL Board. It is being implemented in CIL HQ and its Subsidiaries. Risk Management Policy and its Mitigation Measures are under preparation.


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

1. Corporate Social Responsibility Policy: DocumentList/documents/CIL_CSR_Policy_New_ Companies_Act_2013_05022016.pdf

2. Vigil Mechanism: vigilance.aspx

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

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


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

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

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

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

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

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

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

8. There is no deposit which is not under compliance of Chapter V of Companies Act 2013.

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

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


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

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

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

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

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

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


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 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 Registrar of Companies, West Bengal, Secretarial Auditor and Cost Auditor and wishes to place on record their sincere thanks to Consumers for their continued patronage.


The following are annexed.

i) Pre-tax Profit of CIL & subsidiaries for 2015-16 vis--vis 2014-15 (Annexure 1).

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

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

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

[Annexure 3(A)].

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

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

[Annexure 4(A)].

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

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

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

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

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

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

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

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

xvi) Subsidiary-wise production, Production from underground and opencast mines. (Annexure 13)

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

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

xix) Population of equipment.(Annexure 14)

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

xxi) Project Implementation. (Annexure 16).

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

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

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

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

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

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

xxviii) Loan and Advances, Guarantees, Investments made by the company under Section 186(4) of the Companies Act’2013

(Annexure 23).

xxix) 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, 2016. (Annexure 24).

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

xxxi) Foreign Exchange Earning and Outgo under Rule 8 of Companies (Accounts) Rules 2014 (Annexure 26).

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

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

xxxiv) Significant and Material Orders passed by the Regulators or Courts.(Annexure 29).

xxxv) Corporate Governance Report.(Annexure 30)

For and on behalf of the Board of Directors

S. Bhattacharya
9th August, 2016


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

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


Subsidiary wise details of Dividend income of CIL Standalone

Rs in crore
Company (paying subsidiaries)

Dividend Income of CIL Standalone

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


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Left Decrease Increase Right SEBI Regn. No. NSE: INB/INF/INE 230881235   |   BSE: INB/INF/INE 010881234   |   DSE: INB 050881235   |   MCX-SX : INE 260881235  |   USE - INE 270881235   |   NSDL- DP ID: IN-DP-NSDL-14-96   |   CDSL DP ID: IN-ID-CDSL-43-99         Commodity Membership No.: MCX-10705, NCDEX-0016, NMCE-CL0044, NSPOT-10002, NSEL-10700, SNX-2255, ICEX-1025   |   Dubai Gold and Commodity Exchange (DGCX)-3035   |   Indian Energy Exchange (IEX)- Electricity Trading N2DLOAIL0000
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