Sales & Marketing of Coal

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Sales & Marketing of Coal
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A
PROJECT REPORT ON
A STUDY ON SALES AND MARKETING OF COAL AT
CENTRAL COAL FIELD LTD.
(RANCHI)
AS A PART OF PARTIAL FULFILLMENT FOR PGDM
By:
SHABNAM PRAVEEN
UNDER THE GUIDANCE OF
PROF. MANISHA PALIWAL
SINHGAD INSTITUTE OF MANAGEMENT
2011-2012
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I, Shabnam Praveen the undersigned, hereby declare that the Project Report entitled A Study on Sales and Marketing of Coal written and submitted by me to the Sihngad Institutes Pune, in partial fulfillment of the requirement for the award of
degree of PGDM Administration under the guidance of Prof. Manisha Paliwal is my original work and the
Conclusions drawn therein are based on the material collected by myself.
Place:
Date: SHABNAM PRAVEEN
MPM “B”
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Shabnam
Praveen
PREFACE
Project work is an essential part of the post graduate diploma in management. I the training
program the management students get into practicalities to learn how to work are done in the
real life situation in the organization. It’s not only a learning process but also experiencing.
I was fortunate enough to get into my training from CCL. Ranchi. I achieved all the objectives which any trainee will seek to achieve in his/her internship
programmed. The basic objective to training at an organization like Central Coalfield Limited. Is to get exposure in the orientation on HR accept. Moreover
another objective was to enhance my managerial skills and I achieved all
these objectives.
This study is carried out under partial fulfillment of PGDM course, The detailed
information of study is given further in form of different chapters.
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03. RESEARCH METHODOLOGY
04. CONCEPTUAL BACKGROUND
05. DATA PRESENTATION, AN ALYS IS AND

INTERPRTAETION
06. FINDINGS AND CONCLUSION
BIBLIOGRAPHY
ANNEXURE
CHAPTER 1
INTRODUCTION
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LUllUIIIU
cuinpany.
With eight wholly owned subsidiary companies, operating is an many states; CIL’s activities comprehensively cover A to Z in Coal extraction.
Identification of coal reserves, detailed exploration followed by projectisation, design and implementation of projects and optimizing operations in 465
existing underground and open cast mines, 17 beneficiation plants and one coal carbonization plant are some in CIL’s range of activities.
CIL welcome private participation in coal beneficiation. Participation of international coal mining companies of development of underground coal
mines with modern technology is also receiving CIL’s consideration.
The government of India, the sole owner of CIL, has sanctioned major policy support package which, besides restructuring government’s holding in
the company, has progressively freed and coal prices administrative control. Coal Mining is also being open up to private investment.
COAL INDIA: Coal India Limited, the third largest coal producing company in the world, having about 6.4 lakh employees with headquarter in Calcutta is
a holding company under Ministry of Coal, Government of India, for the entire coal industry in the country barring the coal Mines in Andhra Pradesh (which
comes under the jurisdiction of Singareni Collieries Co, Ltd.(A public sector undertaking of Govt, of Andhra Pradesh) and the captive mines of TISCO, SAIL-
IISCO & DVC. It was formed as a public sector undertaking in November 1975 for reorganizing the nationalized coal mines and ensuring integrated
development of coal, the prime source of energy.
Coal India presently contributes 90% of the total coal production in India. Coal India currently operates mine and Washeries spread over nine states to produce
and beneficiate coal for meeting the demand of the consumers all over the country. The ranges of products are: Raw Coal (Coking and Non Coking), Washed
Coal, Middling’s, Soft coke &Hard Coke. Coal Tar Coal Gas Coal Chemicals etc.
CIL have now 8 subsidiaries viz. Bharat Coking coal Limited (BCCL),Central Coalfields Limited (CCL), Eastern coalfields Limited (ECL), Western coalfields
Limited (WCL), South Eastern Coalfields Limited (SECL), Northern coalfields Limited (NCL), Mahanadi Coalfields Limited (MCL), and Central Mines
Planning and Design Institute Limited (CMPDIL).
IMPORTANT EVENT
1. 1743 Commercial production of coal by East India Company for the manufacture of arms and ammunitions.
2. 1815 Opening of the first shaft mine near Raniganj town.
3. 1843 M/S Carr. Tagore and other company amalgamated into the Bengal Company Ltd. This was the first joint stock company in India
4. 1853 Commencement of Railway service in India.
5. 1855 Opening of railway from Calcutta to Raniganj, the turning point Coal industry for India.
6. 1862 Coal mine began in central provinces Jharia Coalfields by Govt.of India undertaking lsl phase of coal nationalization.
7. 1956 Formation of National Coal Development Corporation Ltd.
8. 1971 Coking Coal Nationalization.
9. 1973 Non-Coking Coal Nationalization.
10. 1975 Establishment of Coal India Ltd.(CIL)
11. 1985 Northern coalfields limited (NCL) and south eastern coalfields Limited (SECL) carved out of CCL and WCL.
12. 1992 Mahanadi Coalfields Limited (MCL) formed out of SECL to manage the talcher and IB Valley Coalfields in Orissa.
13. 2000 De-regulation of Coal pricing and distribution of coal.
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8. Reorganization and reconstruction of Coal mines taken over by

Government.
9. Policy formulation and advisory functions.
SCOPE
The scope of the study is limited to the city of Ranchi only. And the number of respondents chooses was 60 who was surveyed at Central Coal field Limited in
Darbhanga House Ranchi.
The scope of the study to know that to sales and marketing of coal and suggest accordingly and
also for their production growth and it is essential for every organization to attain their goal is an effective manner and it should be done and it should be
increase the performance of the present
as well as with the new consumer. Sales and Marketing of coal process if done in proper way
helps to increase organization productivity.
CHAPTER 2
PROFILE OF THE
COMPANY
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PROFILE OF THE ORGANISATION:
Name: CENTRAL COALFIELD LTD
Address: RANCHI
Location: CCL Headquarter Darbhanga House,
Ratu Road, Ranchi (Jharkhand) Pin-834001
VISION
“Committed to create eco- friendly mining”
Being the domestic leader, CCL strive to be the leading international player in energy sector through best practices from mine to market.
MISSION
“To become a World class, Innovative, Competitive
& Profitable Coal Mining Operation to achieve Customer Satisfaction
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1 he Mission of CCL is to produce and market the planned quantity ot coal and coal products efficiently
and economically with due regard to safety, conservation and nnalitv
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controlled by private owners, and suffered from their lack of interest in scientific methods, unhealthy mining practices and
sole motive of profiteering. The miners lived in sub-standard conditions as well. After independence a greater need for
coal production was felt in the First Five Year Plan. In 1951 a Working Party for the coal industry was set up, which
suggested the amalgamation of small and fragmented producing units.
Coal mining through national sector first started w.e.f 01-10-1956 with the establishment of National Coal Development
Corporation (NCDC). After nationalization of non-cocking coal sector in 1973 became the central division of Coal Mines
Authority Ltd. Again in the year 1975 CMAL was re-organized as Coal India Limited (CIL). Central division of CMAL
was known as Central Coalfields Limited (CCL). CCL was again re-organized in the year 1986 and two separate
companies known as northern coalfields limited and Mahanadi coalfields limited came into existence. Before proceeding
further it should be noted that CCL is a subsidiary of CIL and
is completely owned and operated under their guidelines.
The objective of nationalization was the conservation of the scarce coal resource, particularly coking coal in India.
Subsequently, in the context of safety, conservation and scientific
development, the Government of India took over all coking coal mines on October 16, 1971 and
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CHAPTER 3
RESEARCH
METHODOLOGY
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RESEACH METHODOLOGY
TOPIC:” Study on Sales and Marketing of Coal”: with special reference to C.C.L, Ranchi.” Research :A research is an organized set of activities to study and
develop of model or procedure/technique to find the result of a realistic problem supported by literature and data such that its objectives is optimized and further
make recommendation /interferences for implementations.
Research Methodology: A system of models, procedures and technique used to find the result of
a problem is called a research methodology
TYPES OF RESEARCH:
Descriptive Research: Descriptive research is a also called Statistical Research. The main goal of this type of research is to describe the data and characteristics
about what is being studied. The idea behind this type of research is to study frequencies, averages, and other statistical calculations. Although this research is
highly accurate, it does not gather the causes behind a situation. Descriptive research is mainly done when a researcher wants to gain a better understanding of a
topic for example, a frozen ready meals company learns that there is a
growing demand for fresh ready meals but doesn’t know much about the area of fresh food and
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TRY Researc1 h which analyzes the data
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and future
uses.
Sources:
a) Various Newspaper
b) Various websites
Some b
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CHAPTER 4
CONCEPTUAL
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The marketing mix was first developed by McCarthy over 40 years ago. It was designed
to suggest that we have a balance mix of marketing in our marketing plan.
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Element of the marketing mix-the 4 Ps

PRODUCT
Defining the characteristics of our product or service to meet the customer’ needs. PRICE.
Defining on a pricing strategy. Even if we decide not to charge for a service, it is useful to realize that is still a pricing strategy. Identifying the total cost to the user (which is likely to be higher than the charge we
make) is a part of the price element. PROMOTION
This includes advertising, personal selling (e.g. attending exhibitions), sales promotions (e.g. special offers), and atmospherics (creating the right impression through the working
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PROFILE OF THE PRODUCT

The primary product of CCL is coal. It produces different types of coal which are:- COKING COAL:
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HARD COAL:
Hard coke is formed from coking/semi-coking coal through the process of carbonization.
• Mainly used in metallurgical industries

• Also used in industrial plants utilizing furnaces
WASHED AND BENEFICIATED COAL:
These coals have undergone the process of coal washing or coal beneficiation, resulting in value addition of
coal due to reduction in ash percentage.
• Used in manufacturing of hard coke for steel making

• Beneficiated and washed non-coking coal is used mainly for power generation
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• Beneficiated and non-coking coal is used by cement, sponge iron and other industrial plants
MIDDLINGS:
Middling’s are by-products of the three stage coal washing / beneficiation process, as a fraction of feed raw
coal.
• used for power generation

• Also used by domestic fuel plants, brick manufacturing units, cement plants, industrial plants, etc.
REJECTS:
Rejects are the product of coal beneficiation process after separation of cleans and / or middling’s, as a fraction
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of feed raw coal. O
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(domestic fuel) making, land filling, etc.
CIL COKE/ LTC COKE:
CIL Coke/ LTC Coke are a smokeless, environment friendly product of the Dankuni Coal Complex, obtained
through low temperature carbonization.
• Used in furnaces and kilns of industrial units

• Also used as domestic fuel by halwais, hotels, etc COAL FINES/COKE FINES:
These are the screened fractions of feed raw coal and LTC coke / CIL Coke respectively, obtained from the
Dankuni Coal Complex and other coke oven plants.
• Used in industrial furnaces as well as for domestic purposes
TAR / HEAVY OIL/ LIGHT OIL / SOFT PITCH:
These are products from Dankuni Coal Complex using low temperature carbonization of noncoking coal in
vertical retorts.
• Used in furnaces and boilers of industrial plants as well as power houses, oil, dye, pharmaceutical
industries, etc.
The parameters of classification of coal are:-
A. COKING COAL
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Steel-1 Ash not exceeding 15%
Ash exceeding 15% but not e: X '

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r J3A LCCU11 lg UllL llU L CALUCU Illg JJUU
G Exceeding 1300 but not exceeding 2400
C. SEMI COKING COAL

Grade Parameters
Semi Coking-1 Ash + moisture not exceeding 19%
Semi Coking-2 Ash+ moisture exceeding 19% but not exceeding 24%
D. ASSAM COAL
Grade UHV Range (Kcal/Kg)
A 6200-6299
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B 5600-6199
E.HAR.D COKE
Grade Ash %
By Product Premium Not exceeding 25%
By Product Ordinary Exceeding 25% but not exceeding 30%
Beehive Premium Not exceeding 27%
Beehive Superior Exceeding 27% but not exceeding 31 %
Beehive Ordinary Exceeding 31 % but not exceeding 36%
Presently CCL Has

Number of Mines 59 Mines
(22 Underground& 37 Opencast Mines)
Washeries 7 Washeries
4 Medium Coking Coal Washeries
3 Non- Coking Coal Washeries
Workshop 1 Central workshop

5 Regional workshop
Operating Coalfields
6 (East Bokaro, West Bokaro, North Karanpura,
South Karanpura, Ramgarh & Giri dih)
Coal Reserves (up to 600 meters)

Medium Coking Coal 14.023B.T
Non-Coking Coal 19.539B.T
Total Reserves 33.562B.T
Proved 16.006B.T
(48% of total reserves)
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PRICE
DOMESTIC PRICE FIXATION
Government of India deregulated the prices of Non-Coking Coal of grades A. B. & C. Coking coal and SemiAVeakly coking coal on 22. 03.1996.
Subsequently, on 12.03.1997, Government of India deregulated the price of non-coking coal of grade D. Hard Coke and Soft Coke and also allowed Coal India
Ltd. to fix coal prices for grade E,F &G till Jan’ 2000 once in every six months by updating cost indices as per escalation formula contained in the 1987 report
of the Bureau of Industrial Cost & Price. With effect from 01.01.2000. CIL is free to fix the prices of such grades of coal in relation to the market prices.
Pursuant of the above. CIL fixed the prices of deregulated coal from time to time and last such revision has been made on 12.12.2007
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Grade wise Basic Price of coal at the Pit-head excluding statutory levies for Run-of-mine
(ROM) Non- Long-Flame Coal, Long Flame Coal, Coking Coal, Semi Coking coal, & Weakly Coking Coal, direct feed Coal, Assam Coal for various
subsidiaries of CIL are tabled below:
Basic Price of Run of Mine Non-Long-Flame Non-Coking Coal
(In Rupees/Tone)
Field/Co. A B C D E F G
1490 1340 1120 900 680 530 370

ECL(for 8
units vide
Annex II)
ECL/Mugma 1710 1520 1300 1080 860 640 420

(for 16 units
vide Annex
IV)
ECL/ 890 760 610
Rajmahal
BCCL 1440 1310 1090 900 720 570 410
CCL 1470 1330 910 720 570 410

1110
NCL 1350 1220 1000 840 670 530 390
SECL 1190 1110 950 800 660 520 390
MCL 1030 720 560 440 320

1160 860
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To many consumers, promotion and selling are synonymous with marketing, but promotion certainly represents a large part of the marketing effort, but if it is of
course only a part of the marketing mix. The way various element of marketing mix come together depends upon the marketing objectives of the organization
and therefore promotional strategies must be made with reference these objectives. This means that the rate of promotion in the marketing mix depends
on the role of the other elements of the marketing mix.
There is a lot of promotional activities in CIL, in general and CCL, in particular. From time to time, they do advertise through media regarding the quantity,
quality, place and price of coal available for sale. The different distribution medium is also notified to consumer through media to make it convenient for them
to buy the right type of coal from the right place and on right price according to their equipment.
The company promotes the buyers by the service. The service provided to the customer at the time of bidding through spot e-auction and forward e-auction.
Spot e-auction is held four times
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in a month & forward e-auction will be held quarterly for long term requirement of customer. Company registered in MSTC site according to terms and O
condition. After e-auction date the product dispatch to their customer. Seven days before buyers have to pay money for the e- auction.
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WHAT’S NEW
New Initiatives taken by Coal India Ltd.
CIL, with an impressive track record in meeting energy needs by registering a growth in production in excess of 5% annually over the years, is aiming at
playing a more purposeful role in establishing itself as the prime supplier of energy to the nation.
In this respect, CIL has not restricted itself within the conventional gamut of coal mining, but also exploring the possibility of expanding its horizon in
harnessing the potential of non- conventional energy source as also to expand its pressure beyond the boundaries of our country. The various initiatives, already
taken in this direction are summarized below:
A. Coal Bed Methane (CBM)

B. CIL is involved in 2 nos. of CBM projects:
C. UNDP Demonstration project:
A demonstration project named “Coal Bed Methane” recovery & commercial utilization has been taken by the Govt, of India in collaboration with United
Nations Development program & Global Environment Facility. The project had been sanctioned by Govt, of India during Sept, 1999 and the project is now
under implementation at Sudamdih and Moonidih mines at BCCL. The present technical assistance project draws on the recommendation put forth in India’s
ninth Five year plan recommending the development of new sources of energy. The UNDP-GEF project will support recovery and use. Through representative
demonstration plants, the project will introduce advanced techniques of gas resource assessment and recovery and also utilization methods relevant for India
Coal-mining conditions. Drilling is in progress. First bore hole drilled up to 1059.30.
CIL ONGC JV:

Govt, of India through has allotted 3 blocks. Once in Raniganj and other in Jharia Coalfields approx, of 356 and 85 sq. km. respectively on nomination basis to
the consortium of CIL and ONGC. Work is in progress. Petroleum Exploration License for both the blocks has been obtained from respective state Govt.
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tom er
Following are the list of customer:-
1. Steel Industry
2. Power
3. Fertilizer
4. Sponge Iron
5. CPP (Captive power plant)
6. Brick making
7. Chemicals
8. Paper
9. Textile
10. CPSU (central/public sector unit)
11 .State agency
12.Other
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AREA OF CCL:-
AREA SIDINGS
1 BARKASAYAL- Bhurkunda, saunda, central, saunda, sayal
.
2 ARGADA- Gidi A, Gidi washery, Sirka
.
3
. NORTH KARANPUARA- KDH, Dakra
4 RAJHARA-
.
5 PIPARWAR- Bachara, RCM(Rai, churi manki)
.
6 RAJ RAPP A- Rajrappa W ashery
.
7 KUJU- NR, Chainpur
.
8 HAZARIBAG
.
9
. BOKARO & KARGALI J aran gdi h I, Gri dih
1 DHORI- Selected dhori, tarmi, Dhori new
0
1 KATHARA- Jarangdih II
1
PLACE OF DISPATCH (SUPPLY) FROM CCL:-
1 Delhi
.
2 Jharkhand
3. Bihar
.4 Orissa
.5
West Bengal
.6 Punjab
.7 Haryana
.8 Utter Pradesh
.9 Jammu Kashmir
.
PLACE (COAL INDIA LIMITED)
1 Jharkhand
.
2 Orissa
.3
M ad hy pradesh
.4 Chhattisgarh
.5 Assam
.6 Maharashtra
.7
West Bengal
.8 Utter Pradesh
.
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PRODUCTION, DISPATCH AND SALE

CCL has maintained an upward trend in production. The annual production of raw coal which was 15 million tonnes in 1973-74 (the year of nationalization) touched the level of 47.079 million tonnes in 2009-2010. The major challenge of increasing
production however, came after the re-organization of CCL’s jurisdiction in 1986, when two of the major coalfields viz, Singrauli in M.P and Taichar in Orissa went out of its jurisdiction with nearly 40% of its annual production. With sustained efforts
company has been achieving its annual growth in production for many years.
PRODUCTION OF COAL
Two types of coal mining are done for extracting coal:
1. UNDERGROUND MINING
In some areas coal is present under deep layers of overburden. For extracting coal present at greater depth mining is done by underground method. Underground mining is of two types:-
i. SHAFT METHOD
By shaft method, coal is extracted and removed from underground through lift. Men and material are also transported to the underground through lift. After the removal of coal empty place is filled with send. This method is used when coal is
present at a depth greater than 300 feet.
ii. INCLINE METHOD
By incline method of mining, a shallow hole is dug out and tunnels are made in various directions and coal is extracted from there. Men and material are also transported to the mine through conveyers. In this method explosives are used to
break the surface. This method is used when coal is present at a depth greater than 10-150 feet.
L-QPENCASILMIWJG
In some areas where coal is available near the surface, opencast mining is done to extract the coal. Overburden i.e. mud, rock etc is first removed by using shoves, dumpers etc and then by blasting, coal is removed through Heavy Earth Moving
Vehicles, which include Coal Cutting Machines, Shoves, Dumpers etc.
The extracted coal is stocked and periodical measurement is done by the Survey Department which functions under the Production Department. Overburden is also measured and recorded.
CUSTOMERS
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TVNL (Tenughat Vidyut) Nigam Ltd.

NTPC (National Thermal Power " .ver G^j^^on)
DVC (Del1 2 3 4 5 6 7'
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1MODE OF TRANSPORTATION:-
2 Rail
3 Road
4 Belt
5 Trolley
6 Ropeway
7 Merry go round
METHOD OF MINING:-
1. Open cast(32)
2. Under ground (31)
METHOD OF LOADING:-
1. CHP
2. Pay loader
WEIGHBRIDGE:-
1. Statics
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CCL sells coal in cash As its clear from the table above around 93% of the total sale is made on credit basis. And its only
basically to private given to Government Parties. These Government
parties like:
• TISCO
• IISCO
• VSP 32 Parties also make payments are taken through demand draft or cheque.
In case sale payments are

taken in advance before
dispatching the coal and
payments are taken
through demand draft or
cheque.
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Sector wise dispatch in tonnes.
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Every year increase sector wise dispatch in tonnes
DISTRIBUTION (METHOD & PROBLEMS)

FACTORS AFFECTING CHOICE OF TRANSPORT METHOD
1. The type of coal to be transported.

2. The amount of coal to be transported.
3. The distance to be transported.
4. The facilities at the loading point.
5. The facilities at the consumer’s premises.
6. The access at the consumer’s premises.
7. The number of transfers involved which may cause degradation of coal.
AVAILABLE MEANS OF TRANSPORT

1. RAIL
Largest user including power sectors may be able to make use of rail transport which is often organized on a Merry Go Round System. Where the same rolling slack, designed for rapid loading and unloading, travels between supply
point and consumer.
2. ROAD
Small proportion of coal used by the industries is carried by road. The commercial vehicle use for this purpose differs mainly in the method of unloading.
3. WATER
In the past costal city and inland water ways were used extensively for transportation of coal, by this method has been almost superseded by the kind transport.
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wagons. Passing the buck is a time honored preoccupation of the railways of Coal authorities. While railways
speak man complain of loading of wagons, CIL officials periodically site instances when the railways send too
many wagons to a particularly loading point on a day when workers are always on holidays and the complain in
the next day at a press conference about
scores of wagons lie unloaded.
Problem in Roadways Transportation

According to the estimates made by COAL INDIA about 20% of the dispatches are made by road. CIL does not
encourage the road dispatches due to its certain disadvantages. The cost of sub stantially higher than the rail
freight. Due to increase in the oil prices the cost of Road Transport has increased which ultimately affects in the
increase of the landed price of Coal and Coke. Consumers whose requirement cannot be met due the poor
wagons supply are constraints to life by road by paying higher prices. Road transport may not be considered
uneconomical within a 100 km radius of pithead , but at a time when factories in North and South India,
thousand miles away from pitheads, are transporting by truck, the current practice goes completely again the
professed intension of the Govt. Energy Policy, which aims at minimizing oil consumption and maximizing
coal consumption.
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NEW COAL DISTRIBUTION POLICY

As we already know that there are two types of sector i.e. core and Non-core. The CIL and Govt. of India
approve the new coal distribution policy which is as follows:-
1) Classification of consumers:-
Classification of consumers into core and non-core has been reviewed instead of each consumer would
be treated in merit keeping in view, internal, the regular’s provisions applicable there to and other
relevant factors.
2) Distribution and pricing of coal to different consumers sectors:- Defense sector
and railways will get total of the in coal requirement at notified price.
Power Utilizes, including independent power plants, captive power plants (CPP) and fertilizer sector 100% of
quantity as per the normative requirement of the consumers would be considered for supply of coal, through
fuel supply agreement (FSA) by coal India Ltd. (CIL) at fixed price to be declared. The units/ power plant
which are yet to be commissioned but whose coal requirements has already been assessed and accepted by
ministry of coal and linkage/letter of assurance (LOA) approved as well as future commitment would also be
covered according.
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3) Other Consumer
X
75% of the quantity as per the normative requirement of the consumers/actual users would be
considered for supply of through e-auction at notified price, to be fixed and declared by CIL. The
remaining 25% of coal get by e-auction as their preference.
At present small and tiny consumers in non- core sector, whose annual consumption is
less than 500 metric tonnes are eligible to get through state agencies is 4200 tonnes per annum. If the
quantity is more than 4200 tonnes per annum will take coal through Coal India Ltd.’subsidiary
companies though FSAs. For the non-core sector
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7) Letter of assurance for new consumers:-
New Consumers from state, central power utilities, CPPS, Independent power producers, fertilizer
LOA, are based on prevailing norms and recommendation of administrative ministry.
All other consumers may be issued LOA by CIL; Coal India Ltd. LOA will be issued by the CIL to
the applicant consumers consequent upon payment of EMD to the coal company. The amount of EMD
could be initially issued at 5% of the value of annual coal requirement. However, CIL may decide a
different level, based on various facts, with the approval of board of directors. LOA will be valid for a
period of 12 to 24 months as applicable and if after paying rejected the order then that amount will be
forfeited.
8) E-auction of Coal:-
38
Coal distribution through e-auction was introduced with a view to provide access to coal for such
consumers who are not able to source coal through the available institutional mechanisms for reasons
like the seasonality of coal requirement, limited requirement of coal not warranting long term linkage
etc. In long run, it is expected that e-auction may help in aerating Spot as well as future market of coal
in the country so there is some fresh scheme of e-auction will be introduced.
a) Any buyer will be entitled to buy coal under auction.

b) Coal Companies may be allowed to fix undisclosed reserve price not below the notified price.
c) E-auction should be announced well in advance and be given wide publicity to all consumers who
intend to participate.
d) In order to address the concerns of such industrial consumers who wish to have an assured supply over
a long period, say one year, CIL will earmark a fixed quantity which will be provided to highest
bidder/bidders as per bidder’s requirement during the time of bidding.
MARKETING POLICY
Marketing is a very important branch of any organization. It plays the dominant role in the strengthening of the
organization. In case of industry due to the monopolistic market scenario, Coal Marketing was not much of
problem in the past. However, with the liberalization of the economy and easy availability of imported coal by
many consumer, marketing is now playing a very important role in the entire operation activities of CIL/CCL.
CONSUMER OF COAL
Coal is a fossil fuel. It is used worldwide for generating power and is today one of the largest sources of power
generation. Is the prime commercial energy source in India? Contributing over 90% of the total energy reduced
and consumed. Coal India is perceived to be the synonym of Indian coal Industry. The observation about the
global setting of the Coal sector is not fully reluctant in the Indian context.
SECTOR WISE DISPATCHES OF COAL AND ITS DIFFERENT BY-PRODUCTS DURING THE
YEAR 2010-2011( in million tonnes)
Sector Raw coal Clean Coal W ashed Coal Slurry Rejects
Coal Powder
39
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OFFTAKE:- THE TOTAL OFFTAKE DURING THE YEAR 2010-2011 WAS 46.288 (in million )
OFFTAKE (Raw coal) Target Actual(000
tonnes)
Rail 31249 22315
Road 6001 11709
Internal Coking 3960 3022
40
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snail remain m tne monopoly position tor mucn as a decade, it is after this, tnat tne impact or govt., policy of
liberalization shall be felt in its fullest strength. This is because; by this period, the private mines shall have
positioned themselves in the open market. Liberalization in our country is still in its initial phase.
OBJECTIVES OF SCHEME
To provide equal opportunity to all intending buyers for purchase of Coal/Coal products through single window
service.
1. To provide wider choice of source, grade/ size, mode for all type of customer including small customers/
traders.
41
2. To facilitate creation of large no. of outlets across the country for all customer s through
customer friendly system of sale of Coal/ Coal products making use of modem technology.
3. To evolve a market-driven Coal pricing mechanism through inter play of market forces
demand and supply by shifting away from administrative price regime. Buyer can get access to Coal at
self-determined prices.
4. To provide a legitimate channel of supply of Coal to an ever growing no. of new industries, non-linked
consumers with snapped/ lapsed linkages, customer requiring Coal above their specified permissible
quantities, if any, seasonal consumers such as brick manufactures. SSI & tiny industries, cottage
industrial sector or any other buyers in distress and also buyers purchasing Coal for re-sale purchases.
5. Coal India proposes to increase allocation of Coal under e-marketing, so that the market
mechanization of price determination based on supply and demand is judiciously established.
COAL VIDESH
In India, techno-economically recoverably reserve of good quality coking coal and high grade low ash non-
coking coal are not adequate to meet indigenous requirement and thus import of such coal has been resorted to
bridge the gap.
Since, demand of coal is increasing at a faster rate, it is felt necessary that CIL should venture for coal mining
abroad, where such coal is available, to facilitate bridging the gap. With this objectives, it has been proposed to
from a separate subsidiary company “Coal Videsh”. CIL Board has approved the proposal which needs
approval of Govt. Meanwhile, a dedicated “Coal Videsh” dept, consisting of multi-disciplinary team has been
opened in CIL. The team has started visiting South Africa, Mozambique and Zimbabwe to explore strategic
business opportunities in these countries. CIL is also actively pursuing business intelligence activities by closely
tracking the business opportunities in Australia, Indonesia and Russia.
COAL LIQUEFACTION
Oil India Limited had approached CIL to become a partner in its venture of producing oil from coal in its
Duliajan plant in Assam and requested for supply of about 3.5 Mt/annum of coal from NEC.CMPDIL has
prepared a report on possibilities of producing 3.5 MTPA Coal from NEC, CIL and OIL held a meeting to
discuss future possibilities on July 11, 2005 wherein OIL
42
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international market which has reached up to US $ 65 per barrel. It has decided to form a “Joint TaskLporce” of
CIL which would study the CMPD1 report for possibility of Coal production of .a. from NEC
of formation of production , examine
"p£ d °fher for setting un of

EXCLUSIV
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A draft memorandum of corporation (MOC) has been drafted. MOC includes the scope of work
for this JV in the field of over ground Coal Gasification. CIL and GAIL have taken up drawing of a road map to
accomplish the objective jointly in right earnest.
Power Plant
CIL is also contemplating setting up of power plants in JV. In this connection, CIL is in
negotiation, with both NLC & NTPC for power plant in Orissa.
Switchover - Categorization of Coal from UHF to GCV
43
Efforts are being made to assess the possibility of making the categorization of Coal from UHF basis to
GCV basis. Trials are being conducted at MCL & NCL results of which are yet to be obtained.
COAL NET
Coal India had taken initiative in development and implementation of COAL NET. Application S/w an
integrated solution, to bring uniformity across its subsidiary companies and entrusted the activities to IIT,
Kharagpur in the year 2001. The application s/w has been developed and implemented at CIL and its subsidiary
(HQ’s). Necessary LAN has been set up at respective subsidiary (HQ’s) for COAL NET s/w. The same is being
upgraded for faster access of application data.
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interconnecting CIL HQ’s, Subsidiary HQ’s and Mock for voice, data and video conferencing in an integrated
manner for seamless flow of information over the network. Similar rollout of from Subsidiary HQ’s to area
offices, regional stores, projects, Coal loading points etc.
Considering significant role of telecommunication and IT in providing a proper decision support system at area
level, CIL has been and MCL) for implementation of Coal Net application Software. Necessary infrastructure
preparation has been carried by respective subsidiary and implementation is in progress. Initiative has been
communication.
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(100%)
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45
DATA ANALYSIS
Q. 1 .What according to you should be the most preferred way of the sales of coal.
SL.NO. RESPONSE NO OF RESPONDENT PERCENTAGE OF

RESPONDENT
A Credit sales 40 66.

6
B Cash sales 33.
20
3
TOTAL 60 100
From this graph we concluded that most preferred the way of sales of coal through credit sales
33.3% and 16.6% through cash sales.
Q.2. Which method according to you is the most preferred way of Transportation.

RESPONDENT
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Rail
B Road 15 25
C Water 5 8.3
TOTAL
60 100
47
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fliis graph 50% of respondents prefer RaP-G”~- sport of coal and 25% preferred Road
.3% preferred
EXCLUSI\MPI :
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From this graph we conclude that 50% of respondents preferred Shaft Method and 25% Incline Method of and 16.6% through Opencast Method.
Q.4. Do you think that price of should be decrease according to need of coal?
47
SL.NO RESPONSE NO. OF RESPONDENT PERCENTAGE OF

. RESPONDENT
A YES 15 25
B NO 30 50
C CAN’T SAY 15 25
TOTAL
60 100
From the above graph we conclude that 50% of the respondents says that price of the coal should not be decreased while 25% of the respondents says that it should be decreased and 25% can’t say anything.
Q.S.What types of coal did you prefer?

RESPONDENT
A Coking coal 35 58.3
B Semi Coking Coal 15 25
C Non Coking Coal 5 8.3
D Others 5 8.3
TOTAL
60 100
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is graph we conclude that 58.3% of ri t prefer Coking Coal and 25% Semi
al and 8.3% N'
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As per this graph we conclude that 41.6% of respondents are not satisfied with the price of Coal
by CCL and 25% are satisfied and 16.6% are fully satisfied or can’t say.
Q.7. Are you satisfied with the Policy formulation and advisory functions by the CCL.
49

. RESPONDENT
A Yes 35 58.3
B No 33.3
20
C Can’t Say 5 8.3
TOTAL
60 100
From this graph we conclude that 58.3% of respondents are satisfied with Policy formulation and Advisory of company and 33.3% are not satisfied and
8.3% are can’t say.
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Q.8.D0 you realize that your competitors probably answered NO to even more questions than O
SCRIBD Search . RESPONDENT
A Yes 25 41.6
B No 30 50
C Can’t Say 5 8.3
TOTAL
60 100
you did.
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From this graph we conclude that 41.6% of the respondent says that yes and 50% says no
and 8.3%says can’t say.

. RESPONDENT
A Yes 40 66.6
B No 33.3
20
TOTAL
60 100
Q.9.Are you satisfied with Policy for new consumers?
As per this graph we conclude that 66.6% respondents agree with policy for new
customer and 33.3% are disagree.
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RESPONSE | NO. OF RESPOI^MT PERCENTAGE OF

"—^NDENT
EXCLUSlYg I :
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52
CHAPTER 6
FINDING
&
CONCLUSION
FINDINGS
a) Consumers are classified into two types - New customer and Existing customer.
b) Requirements of defence sector,power sectoer,IPP,Fertilizer,railways will be met in full at notified price.
53
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sourced by them through e-auction/import of coal etc. )

Distribution of coal is done by railw^-awLtj Non coking
idwaycrfrom CCL.
EXCLUSIv :
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a.
FER a
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CONCLUSION
54
Coal India is the third large coal producing Country, It gives opportunity to 4.25 lakh
employees and their needing facility.
It also contributes in shaping the country by paying tax. The profit is also good but profit not shown of maximum. As I want to say something about the price release for the coal to the buyers. Per tonne price is very cheap and the
buyers release the products at maximum price. As it is very good because company release a highest price than the coal related products like electricity price is more. As this is very good aspects that is under the govt, of India. If it is
the under the private sector then he create monopoly in country. The coal distribution policy is very effective and auction is very interesting for the buyers. The Company also takes positives decision that is not involves in service to the
buyers like transport; material handling Logistics
supply chain etc. company gave time to receive the coal within 45 days.
BIBLIOGRAPHY & REFERENCE
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I. Marketing Manageme
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SINHGAD INSTITUTE OF MANAGEMENT

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Conclusions drawn therein are based on the material collected by myself.

Date: SHABNAM PRAVEEN

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03. RESEARCH METHODOLOGY

04. CONCEPTUAL BACKGROUND

05. DATA PRESENTATION, AN ALYS IS AND

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8. Reorganization and reconstruction of Coal mines taken over by

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PROFILE OF THE ORGANISATION:

Name: CENTRAL COALFIELD LTD

Location: CCL Headquarter Darbhanga House,

Ratu Road, Ranchi (Jharkhand) Pin-834001

& Profitable Coal Mining Operation to achieve Customer Satisfaction

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Element of the marketing mix-the 4 Ps

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PROFILE OF THE PRODUCT

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• Mainly used in metallurgical industries

WASHED AND BENEFICIATED COAL:

• Used in manufacturing of hard coke for steel making

• used for power generation

CIL COKE/ LTC COKE:

• Used in furnaces and kilns of industrial units

• Used in industrial furnaces as well as for domestic purposes

TAR / HEAVY OIL/ LIGHT OIL / SOFT PITCH:

The parameters of classification of coal are:-

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Steel-1 Ash not exceeding 15%

Ash exceeding 15% but not e: X '

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r J3A LCCU11 lg UllL llU L CALUCU Illg JJUU

G Exceeding 1300 but not exceeding 2400

C. SEMI COKING COAL

Semi Coking-1 Ash + moisture not exceeding 19%

By Product Premium Not exceeding 25%

By Product Ordinary Exceeding 25% but not exceeding 30%