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Standard Operating Procedure (SOP) For Effective Coal Administration
Standard Operating Procedure (SOP) For Effective Coal Administration
Standard Operating
Procedure (SOP)
for Effective Coal
Administration
Act The Mines and Minerals (Development and Regulation) Act, 1957
AD Additional Director
AMO Assistant Mining Officer
BIS Bureau of Indian Standards
CCO Coal Controller's Organization
CCR Colliery Control Rule, 2004
CHP Coal Handling Plant
CIMFR Central Institute of Mining and Fuel Research
CSA Coal Supply Agreement
CSIR The Council of Scientific and Industrial Research
CSN Crucible Swelling Number
DD Deputy Director
Dmf dry moisture free
DGM/ DGM CG Directorate of Geology & Mining, Government of Chhattisgarh
FSA Fuel Supply Agreement
GCV Gross Calorific Value
IBM Indian Bureau of Mines
IICT- Hyderabad Indian Institute of Chemical Technology, Hyderabad
IIEST Indian Institute of Engineering Science and Technology, Shibpur
IITs Indian Institute of Technology
IMMT Bhubaneshwar Interscience Institute of Management & Technology, Bhubaneswar
IS Inherent Sulphur
JD Joint Director
LTGK Low Temperature Gray King Assay
MMDR Act The Mines and Minerals (Development and Regulation) Act, 1957
MO Mining Officer
NA Nominated Authority
NABL National Accreditation Board for Testing & Calibration Laboratories
NML Jamshedpur National Metallurgical Laboratory, Jamshedpur
RH Relative Humidity
ROM Run off Mine
SOP Standard Operating Procedure
VM Volatile Matter
Page 1 of 46
Contents
1. Background........................................................................................................................................ 3
2. Application of the SOP ..................................................................................................................... 4
3. Applicability ....................................................................................................................................... 4
4. Objectives of the SOP ....................................................................................................................... 4
5. Procedure for categorization of coal in compliance with Rule 4 of CCR .................................... 5
5.1 Categorization of coal/ declaration of grade [Rule 4 of CCR2004] ............................................... 7
5.1.2 Quality Surveillance to be conducted by DGM .................................................................................... 8
5.1.3 Annual Grade Approval ..................................................................................................................... 8
5.2 Revision and dispute management ................................................................................................. 9
5.2.1 Revision of annual grades/quality ....................................................................................................... 9
5.2.2 Revision of classification of coal seams ............................................................................................ 10
5.2.3 Dispute Management between supplier of coal and purchaser (Under rule 4(5) of CCR, 2004 ...... 11
5.2.4 Dispute management between Mine Owner and State Government................................................ 12
5.2.5 Time Frame for submission of application ........................................................................................ 13
5.2.6 Organization structure and Responsibility Sharing ........................................................................... 14
5.3 Quality Surveillance in compliance with Rule 7 of CCO ............................................................. 17
5.3.1 Sampling of Coal ................................................................................................................... 17
5.3.2 Sample Preparation ................................................................................................................... 21
5.3.3 Procedures for Lab Analysis of Coal Samples .................................................................................. 22
5.4 Monitoring and review of returns filed & information submitted in compliance with Rule 5 of
CCO ............................................................................................................................... 22
5.5 Monitoring of Notice of suspension or closure in Compliance with Rule 10 of CCO .............. 24
5.6 Framework for inspection of Collieries in compliance with Rule 12 of CCR ............................ 26
6. Annexures ........................................................................................................................................ 27
7. Review of existing industry practices followed by Coal India Limited (CIL) and its subsidiaries
in terms of fuel supply agreement (FSA) ............................................................................ 38
7.1 Quantity ............................................................................................................................... 38
7.1.1 Annual Contracted Quantity (ACQ): .................................................................................................. 38
7.1.2 Monthly Quantity: ................................................................................................................... 38
7.1.3 Make-up Entitlement & Make-up Quantities/ Carry Forward ............................................................ 38
7.1.4 Compensation for short supply /lifting ............................................................................................... 39
7.2 Quality ............................................................................................................................... 39
7.3 Determination of coal quality ......................................................................................................... 39
8. Capacity Addition and review of facilities with DGM................................................................... 46
8.1 Quality addition: .............................................................................................................................. 46
8.2 Quantity addition ............................................................................................................................. 46
P a g e 2 | 46
1. Background
As per the Colliery Control Rules 2004, Coal Controller Organization (CCO) is the statutory body under
Government of India, who regulates the classification/categorization/grading of coal mined in India. As per
the said provisions, Coal Controller shall lay down the procedure and method of sampling and analysis of
coal for the purpose of declaration and maintenance of grade mined in a colliery. By following the
procedure laid down by CCO, the grades of coal seams at different collieries are declared every year.
They are mainly:
I. Non-coking coal where grading is based on Gross Heat content
II. Coking Coal where grading is based on ash % and
III. Semi coking coal and weakly coking coal where grading is based on ash and moisture %.
Details of the coal quality are shown in following tables:-.
Page 3 of 46
Table 3.Grading of Semi Coking and Weakly Coking Coal
3. Applicability
In exercise of the powers conferred by sub-clause (b) of sub-section (1) read with subsection (3) of section
26 of the Mines and Minerals (Development and Regulations) Act,1957 (67 of 1957), the Central
Government as per Gazzette Notification S.O. 645 (E) dated 02.03.2016 has notified that the powers of
the Coal Controller under sub-rule (3), (4), (5) of rule 4, rules 5, 7, 10 and 12 of the Colliery Control Rules,
2004, shall be exercised by the respective State Governments or such officer as authorized by it through
notification in respect of all coal mines except the mines or blocks of Central Government Public Sector
Undertakings. Governor of Chhattisgarh State has delegated all these powers to various officials as per
order issued dated 4th June 2016. With reference to these regulatory changes, State Government of
Chhattisgarh represented by the Directorate of Geology & Mining (DGM) have prepared the below
Standard Operating Procedures (SOPs) for executing the responsibilities laid down the referenced order.
P a g e 4 | 46
g. Identification of the Capacities and review of facilities [To perform above functions] (Refer Clause
8 of this document)
h. Review of existing industry practices followed by Coal India Limited (CIL) and its subsidiaries in
terms of Fuel Supply Agreement (FSA) (Refer Clause 7 of this document).
Figure 1.Flow diagram for Annual Grade Declaration for coming financial year
• Sample Collection by DD/MO/Flying Squad/MI from 2nd week of Jan at three different
days of at least 7 day interval(sample will have three portions: one for DGM, one for
Colliery owner and one will be taken by DGM as referee sample). It is also proposed
that DGM should collect first sample together with colliery owners to minimize time,
Intimation of effort and dispute.
grades by DGM • Lab Analysis(Bilaspur /NABL Labs: to be decided by Director DGM/Additional Director,
authorised DGM)
officials to colliery • RH of regional offices to Intimate analysis report to Colliery owner
Owners
Note:
• Cost of Lab analysis of the samples shall be borne by Colliery owner.
• Colliery owner shall provide all reasonable facilities in sample collection and preparation
• A similar approach will have to be follow in case if colliery owner wants to revise the annual grade.
• In case of annual grade declaration, depending on analysis result of first sample collected by authorized
officials of DGM, Regional Head will decide whether further collection and analysis of samples is required
or not.
• In case of unusual variation, RH/DD will analyze reasons for such variation. System of rejecting
suspicious test result should be as per Appendix D of IS:436 (Part 1/sec1 1964 of BIS). At least one
Page 5 of 46
sample in a quarter can be collected under supervision of RH/DD to check seasonal variation as well as
work of subordinate officers
• A sample timeline for annual grade declaration is shown below. It can be revised every year with slight
modification as per the requirement.
P a g e 6 | 46
5.1 Categorization of coal/ declaration of grade [Rule 4 of CCR2004]
Grade declaration is done in following stages:
I. Provisional declaration of grades by Nominated Owner
II. Quality Surveillance by DGM to approve the grade
III. Confirmation of approved annual grade by Nominated Owner
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VII. In case of a virgin seam in a new area having no mine in the vicinity, the expected class of coal as
per analytical data of bore hole or other such samples provisionally mentioned or mentioned in the
Project Report (PR) may be taken as the expected/indicative class for the purpose of declaring the
grade/quality. In this case also the owner shall apply to the DGM through online portal of
DGM(Once implemented)/ email with detailed justification for provisional classification of the seam
in the extant prescribed format (Annexure-B).
VIII. Similarly, provisional composite grade/quality of coal dispatched through sidings shall be declared
in the event coal of multiple grades is dispatched through those siding(s) as one single composite
grade mentioning the proportion of mixing different grade of coal. In the event coal in multiple grades
is dispatched through the siding(s) in the respective multiple grades, no specific declaration is
needed and the corresponding grades of each feeding colliery are needed to be stated against that
particular siding.
IX. The application for confirmation of the final class whether the coal is coking or non-coking in case
of a virgin seam should be submitted to the DGM, Chhattisgarh as early as possible but in any case
not later than 60 (sixty) days from the date of declaration of provisional grade/quality.
5.1.2 Quality Surveillance to be conducted by DGM
Quality surveillance will be required to be done by DGM throughout the year. It consists of inspection for
ascertaining quality in private and state government owned coal mines, regular inspection to ensure
compliance with specific orders relating to coal and resolving statutory complaints. Quality Surveillance
will to cover following aspects:
a. Annual grade approval
b. Revision of annual grade
c. Revision of classification of coal seam
d. Reopening of workings
e. Dispute management
Authorized officials will be required to carry out inspection of Collieries. They will also be responsible for
collection of Coal Samples. Once coal samples have been collected, it can be analysed in either DGM
own lab or any other lab as suggested by Coal Controller. In case, DGM lab does not have facility for
ultimate analysis of Coal Samples, it can be carried out in other labs as mentioned by Coal Controller or
DGM needs to provide facility for Ultimate analysis of Coal in their lab.
P a g e 8 | 46
II. Following table should be used regarding approval of grads declared by nominated authority:
Sl Description Condition Decision taken by DGM
No
same seam is going to Grade proposal sent by nominated Grade may be approved
1
be mined in coming authority is same as grade approved without having any sample
financial year for the current financial year collection and analysis
same seam is going to Grade proposal sent by nominated Sample collection and
2
be mined in coming authority is not same as grade analysis needs to be done
financial year approved for the current financial
year
New seam is going to Sample collection and
3
be mined in coming analysis needs to be done
financial year
III. Random sampling and/or analysis for finalization of the proposed grades of all the seams of the mines
and all attached siding(s) of mine(s) shall be done by authorized officers of DGM. For this purpose,
seam /dispatch samples shall be collected and analyzed. The job shall commence from the 2nd week
of January every year .
IV. The seam shall ordinarily be graded only in respect of the working thickness in case of underground
development working. For annual grade declaration for the seams of underground mines where more
than one coal seam are being worked but coal come out in a mixed way through the main belt, there
shall be a provision of collecting samples from the respective belts of different seams for their individual
grade declaration.
V. In case of depillaring and opencast mining, the total working thickness of the seam or seams involved
should be considered for grading purpose. If technology is such that full thickness cannot be mined out
at a time, then Regional office of DGM will take decision regarding collection of samples and it will be
site specific.
VI. The grade/quality declaration shall generally be in respect of a seam or a section of a seam and not in
respect of any pit, incline or quarry.
VII. The annual grade/quality of coal shall be finalized by DGM on the basis of samples drawn randomly
from wagons/trucks/conveyor belts/rope ways on at least 3 different dates with a minimum interval of
7 days and by taking the average of the samples. The expenditure of such sampling / sampling &
analysis shall be borne by the Coal Company. All the reasonable facilities shall be provided by the Coal
Company as requisitioned by the Head of the Regional DGM offices.
VIII. On the basis of average of the analysis results of all the three samples, the approval for the Annual
Grade Declaration shall be communicated by the DGM. Subsequently, the grades/quality so approved
by the DGM shall be notified by the Nominated Owner in the prescribed Grade Certificate in the
enclosed prescribed format (Annexure-A) and copy of such Grade Certificate(s) issued under the
signature of the Owner shall be forwarded to DGM. Number of sample collection and analysis can be
revised by regional head based on analysis report of first sample. For example if GCV of first sample
analysis is closer to upper range of GCV of that Grade, then further sample collection and analysis is
recommended.
Page 9 of 46
I. If the Nominated Owner intends to revise the existing (Annual) grade/quality of a seam or section of a
seam, he shall, not less than 60 days before such revision, give notice of his intention to the DGM in
writing indicating the results of both seam and loading samples drawn by the Owner, Agent or Manager
of the mine in the prescribed format (Annexure- B) on at least 6(six) different dates spaced at an interval
of at least 7 (seven) days in the preceding 2(two) months to justify the proposed revision. The samples
drawn from at least 3 different locations of the concerned seam/ siding shall be analyzed in laboratories
as mentioned in annexure H and the sampling sites shall be clearly shown in the attached working
plan. If the colliery has entered into Third Party/Joint sampling agreement with a consumer(s)the
analysis results of such third party/joint samples may be the basis for revision of grade/quality if agreed
by the major consumer. The results of such third party/joint samples countersigned by the major
consumer shall be submitted along with the notice of intention for revision of grade/quality.
II. For annual grade declaration for the seams of underground mines where more than one coal seam are
being worked but coal come out in a mixed way through the main belt, there shall be a provision of
collecting samples from the respective belts of different seams for their individual grade declaration.
On receipt of the notice of intention from the Nominated Owner as stated above, the DGM officials may
collect the dispatch samples and get them analyzed at any laboratories as mentioned in Annexure H
and the cost of it shall be borne by the Coal Company concerned and accordingly the grade(s) may be
revised based on the recommendation of Regional head of DGM and due approval of the authorized
officials of DGM.
P a g e 10 | 46
5.2.3 Dispute Management between supplier of coal and purchaser (Under rule 4(5) of CCR, 2004
I. Any consumer who wishes to prefer a complaint to the DGM regarding the grade of coal received by
him may do so in the format provided in Annexure C. A separate complaint should be made in respect
of each grade of coal of each colliery which should be accompanied by a fee of Rs.2500/- in the form
of an A/C Payee Bank Draft on any Nationalized Bank in Raipur drawn in favour of DGM,
Chhattisgarh, for each grade of each colliery against which complaint is being raised.
II. While referring to any dispute arising out of the correctness of the declaration of grade of coal to the
DGM by a coal consumer for a decision, under sub-rule 5 of rule 4 of the Colliery Control Rules, the
same should be preferred in the prescribed format (Annexure – C), and full analytical data of coal
and such other information which is considered relevant by the DGM should be furnished.
III. On receipt of the complaint from the consumer, the may take surprise samples in the presence
of authorized representatives of Coal consumers and the coal company from the loading point(s), get
them analyzed in Government or NABL accredited laboratories. Cost of such analysis of the samples
shall be borne by the complainant. Based on the results, DGM shall take a decision.
IV. The decision of the DGM in the matter of disputes about grades/quality under sub-rule 5 of rule 4 of
the Colliery Control Rules, 2004 is final and binding on the Coal Company and Consumer.
V. Disputes arising only in respect of the correctness of declaration of grade/quality of coal of seam or
section of a seam shall be admitted by the DGM and no dispute in respect of commercial aspects in
respect of a particular consignment shall be entertained by DGM.
Flow diagram for dispute management has been shown in figure 3.
Note:
Page 11 of 46
• Disputes arising only in respect of the correctness of declaration of grade/quality of coal of seam or section
of a seam shall be admitted by the DGM
• Cost of Lab analysis of the samples shall be borne by the complainant
• Decision taken by DGM will be binding on the Coal Company and Consumer
5.2.4 Dispute management between Mine Owner and State Government
I. The referee sample shall be analyzed when the Colliery challenges the result supported by his
own analysis result of the sample kept with him within a period of 15 (fifteen) days from the date
of intimation of Regional Head of DGM’s result. The analysis result of the referee sample shall be
the final analysis result of the consignment.
II. The aggrieved colliery will be allowed to examine within another 15(fifteen) days whether the seal
on the referee sample is intact. The referee sample part should be sent to a laboratory in a lot of
at least 6 (six) samples with code number (which would not of course be made known to colliery
representatives) under sealed condition. Effort shall be made to dispatch the referee samples in
his presence. Otherwise, the referee sample will be destroyed after 30 (thirty) days from the date
of intimating the results
III. In case of unusual variation of analysis result of the referee part from the earlier result of the same
sample, the reason for such variation may be analyzed.
IV. System of rejecting suspicious test result shall be as per Appendix D of IS:436( Part I /Sec I) 1964
of BIS(Annexure I)
V. For such cases, at least one sample in a quarter shall be collected under supervision of Regional
Head of DGM himself , so that the seasonal variation as also the work of the subordinate officers
can be checked.
VI. In order to ensure proper analysis, Regional Head of DGM should have the analysis conducted
periodically in more than one Govt. Accredited laboratory simultaneous and compare the results.
VII. All reported grades (Seam wise, composite grading etc.) must be in line with approved grades.
VIII. Example: let us assume a mine has 4 coal seams planned to be mine in a financial year as per
approved mine plan then. If approved grade of four seams are G6,G7,G8,and G9 then in any
month reported grade should match with approved grade. DGM will not accept if reported grade
is other than any of four grades. In a particular month, reported grade may be any or all of four
grades but no other than it.
IX. In any month, If DGM is not satisfied with reported grades, DGM can send a letter to mine owner
for justification or can perform a proper sampling and analysis. Based on the result of analysis,
DGM will re- declare the grade
X. If result of analysis is other than as reported by Mine Owner, Mine owner will have to bear all the
cost incurred.
XI. Certified Survey Report (approved by Mine Manager) at start and end of financial year should be
main basis to validate tonnage of Coal produced in financial year.
XII. It might be possible that a mine has planned to mine n number of seam in a financial year. In a
particular month, grade reported by mine owner must match with any of n number of seams in
either a direct way or a weighted way.
XIII. If reported grade does not match with approved grades, DGM can ask for proper justification.
XIV. If DGM is not happy with justification, they can again perform sampling and analysis to check the
grade.
XV. Mine owner will have to bear all the cost in case if result of sampling and analysis done by DGM
is not matching as reported by him.
P a g e 12 | 46
5.2.5 Time Frame for submission of application
I. All the provisional grade proposals for declaration of annual grade must reach DGM office positively
before 31st of December of every year failing which the same shall not be considered for annual
grading by DGM
II. The application for confirmation of the final class whether the coal is coking or non-coking in case of
a virgin seam should be submitted to the DGM as early as possible but in any case not later than 60
(sixty) days from the date of declaration of provisional grade/quality.
III. In case of intention of change of classification of coal from coking to non-coking & vice versa, the
Nominated owner shall apply to the DGM positively by 15th December of every year.
IV. If the Holder/Owner intends to revise the existing (Annual) grade/quality of a seam or section of a
seam, he shall, not less than 60 (sixty) days before such revision, give notice of his intention to the
DGM in writing indicating the results of both seam and loading samples drawn by the Owner, Agent
or Manager of the mine in the prescribed format (Annexure- B) on at least 6(six) different dates
spaced at an interval of at least 7 (seven) days in the preceding 2(two) months to justify the proposed
revision.
V. Proposal for revision of grade (if any) intended by the Nominated Owner shall not be entertained by
DGM if received after expiry of six months from the declaration of annual grade.
VI. Interim re-classification proposal by the Nominated Owner for revision from coking/non-coking
characteristics or vice-versa within a financial year will not be accepted at the office of the DGM.
VII. In case, where a seam is re-opened within 6(six) months of temporary discontinuance, the previous
grade prevailing at the time of discontinuance may be restored but when the period of discontinuance
exceeds 6(six) months, the nominated owner shall apply afresh for grade verification by DGM.
VIII. Various applications and their timelines are provided in Table 4.
3 Proposal of revision of Annual Not less than 60 days from such Proposal will not be
Grade revision accepted by DGM if
received after expiry
of six months from
the declaration of
annual grade
4 Application for confirmation of final Not later than 60 (sixty) days from
Class (coking or non-coking) in the date of declaration of
case of virgin seam provisional grade/quality
Page 13 of 46
6 Interim re-classification(coking to Not Allowed
non coking and vice versa)
Director,
DGM
Additional
Director
Joint
Flying Squad
Director(MA)
joint
Deputy Director(Mining)
Director(Geology)
Regional
MO AMO
Head(geology)
MI
Table 5 covers responsibility sharing matrix as per order issued by Governor of Chhattisgarh State
P a g e 14 | 46
2 Additional Director, Geology and Mining 4(3),4(4),4(5),7 & The entire territory of the
Chhattisgarh 12 State of Chhattisgarh
3 Joint Director, Geology and Mining 4(3), 7 & 12 The entire territory of the
Chhattisgarh State of Chhattisgarh
5 Deputy Director (Mineral Administration)/ 4(3), 7, 10 & 12 Area within the limit of
Mining Officer, posted in district their respective District
As mining inspectors are empowered for quality surveillance (under Rule 7 of CCR,2004) but not
for collection of Coal samples (under Rule 4(3) of CCR,2004) it is suggested that authorised
officials under Rule 7 of CCR,2004 can delegate their power to mining inspectors whenever
required. Further, if DGM considers the need to provide sampling right to mining officers, same
can be done after amending order issued dated 4th June 2016 by Governor of Chhattisgarh State.
Based on the above matrix, Way forward for all activities to be fulfilled by DGM has been tabulated
in Table 5.4
Table 5.4: Way forward for all activities to be fulfilled by DGM
Rules Descriptio Current Proposal/ way forward Authorized
under n status Officers
CCR,2004
P a g e 16 | 46
5.3 Quality Surveillance in compliance with Rule 7 of CCO
Framework work for Quality Analysis
Sampling of Coal
• Sample Collection
•Sample collection
from Seam
•Sample collection
from Loaded trucks
•Sample collection
from static loaded Lab Aanlysis Report generation
wagons
•Sample collection
from conveyor belts
• Sample Preparation
• Conig and Quartening
• General Precautions
Page 17 of 46
IV. In case of any big piece of coal/stone encountered during the process of digging in the above manner,
all the material at the top of the big piece shall be taken in sample.
V. After collection from one truck, the gunny bag containing the sample shall be carried to the site of next
selected truck and the same process is continued up to the last wagon selected for collection of
sample. Alternatively, the gunny bags containing sample may be kept at a central place under reliable
guard or placed in the locked sampling room wherever available. The gunny bag will be loosely tied.
B. Procedures of collection of coal from Static loaded Wagons
I. Whole Rake (fully or partially loaded) will be considered as one lot for the purpose of sampling. When
a rake is loaded with more than one grade/source of coal, wagons loaded with one grade of a particular
source shall constitute one lot.
II. 10% (Ten per cent) of wagons of each lot will be selected from the population of the loaded wagons
for actual collection of samples as per random number table (Ref: IS 436 Part I , Sec I of 1964 of
Bureau of Indian Standards).
III. One point on the surface of the loaded wagons will be decided for collection of sample before getting
on to the top of the wagon. From the prefixed point the entire quantity of coal will be collected from a
pit of about 30 cm diameter and dug up to a depth as far as practicable.
IV. The top of the selected spot for collection of sample shall be leveled before digging a pit of about 30
cm diameter to a depth as far as practicable taking precaution to prevent coal getting mixed with the
sample due to side spillage. However, the minimum quantity thus collected from each pit shall not be
less than 30 Kg.
V. In case of any big piece of coal/stone encountered during the process of digging in the above manner,
all the material at the top of the big piece shall be taken in sample.
VI. After collection from one wagon, the gunny bag containing the sample shall be carried to the site of
next selected wagon and the same process is continued up to the last wagon selected for collection of
sample. Alternatively, the gunny bags containing sample may be kept at a central place under reliable
guard or placed in the locked sampling room wherever available. The gunny bag will be loosely tied.
General: To ensure the randomness of selection of Wagons from a sub-lot, the use of random number
tables as described below is recommended. The first set of random numbers shall be used if the
number of wagons in the sub-lot is less than or equal to 100, whereas the second set shall be used if
the number of wagons in the sub-lot is more than 100 but less than 1000. Having selected the set, any
one numeral shall be chosen from it at random, starting from the selected numeral and continuing on
with the numerals in any direction, right or left, up or down, the succeeding numerals shall be copied
out one by one till the number of numerals copied out is equal to the number of wagons to be chosen.
The numerals which are greater than the size of the sub-lot or which have already occurred shall be
omitted. The numerals noted down in this manner shall then be arranged in the ascending order of
magnitude.
a. Starting from any wagon in the sub-lot and counting them in one order, the wagons corresponding to
the numerals already noted down shall be selected for drawing gross samples.
b. Taking the first set of random numbers as provided below, suppose, further that numeral 07 occurring
in the third row under second column is chosen at random. Proceeding further in any direction, say
right, and omitting the numerals which are greater than 15, the numerals encountered are 07,04, 14
and 68. Arranging them in one ‘order, the sequence 04,07,08 and 14 is obtained. It then follows that
the 4th, 7th, 8th and 14thwagon counted from the beginning of the’ sub-lot shall be selected for drawing
the gross sample:
P a g e 18 | 46
74 67 95 70 56 51 54 50 53
81
37 42 62 93 96 34 18 22 89
61
07 16 29 39 04 71 14 76 78
52
08 77 25 72 49 86 03 83 45
43
32 27 40 63 57 97 84 82 87
65
58 11 23 80 10 30 01 100 44
21
90 55 88 13 36 24 91 19 64
31
98 20 05 68 46 69 85 94 59
73
15 35 26 79 92 38 12 41 17
33
66 99 09 06 47 48 60 28 02
75
Example: Suppose there are 60 wagons in a lot of approximately 1200 tonnes. According to above table ,
this would require the division of the lot in to 4 sub-lots, each consisting of 15 wagons of approximately 300
tons. Considering any particular sub-lot, if 25 percent of the wagons have to be selected at random for
drawing the gross sample, it shall imply that 4 wagons have to be selected out of 15 in the sub-lot.
Table 5.6: Second Set of Random Numbers
Page 19 of 46
C. Procedures of collection of coal from Conveyor Belts
I. For the purpose of sampling, a lot, while it is being discharged over a conveyor, shall be divided into a
number of sub-lots of approximately equal weight as specified below:
Table 5.7: Number of sub lots selection for sampling of coal from conveyor belt
Weight of the Lot (Metric Tonnes) Number of sub lots/ gross samples
Up to 500 2
501-1000 3
1001-2000 4
2001-3000 5
Over 3000 6
II. A representative gross sample shall be drawn from each of the sub lots and shall be kept separately.
Thus there will be as many gross samples as the number of sub lots into which the lot has been
divided
III. The number of increments to be taken from a sub lots for drawing the gross sample shall be governed
by the weight of the gross sample and the weight of the increment as specified in Table 5.8 for various
size groups of the coal. This number shall be evenly distributed over the sub lot. The increment shall
be drawn with the help of a suitable shovel at regular intervals:
Table 5.8: number of increments from a sub lot of coal sample taken from conveyor belt
2 Weight of increment(approx.) 5 Kg 5 Kg 5 Kg
IV. The Increments shall preferably be taken from the full cross section and thickness of the stream in
one operation. When coal is in the motion, the most reliable means of obtaining such increments is
to sample at a point where coal discharges from the belts. The best possible increment is one which
cuts across entirely a falling stream of the material by means of a suitable receptacle passed from
one side of the stream to the other without allowing the receptacle to overflow. If the whole of the
stream can not be covered by one increment without overfilling the receptacle, the stream should be
sampled systematically by taking materials from all portions.
V. If it is not possible to sample satisfactorily at a point of discharge, increments may be drawn from the
moving belts itself. In this case, the increment shall be collected from the centre and the left and right
sided of the belt along the same width. To ensure that very small material is also correctly obtained
in the sample, the scoop should sweep the bottom of the conveyor.
P a g e 20 | 46
VI. If it is practicable to stop the belt periodically, increments may be collected from the whole cross
section of the stream by sweeping the whole of the coal lying between the sides of a suitable frame
placed across the belt. The frame should be inserted in the coal until it is in the contact with the belt
across its full width.
VII. Before collecting the increments, the speed of the conveyor and the quantity of material passing a
certain point in a given time shall be ascertained so that an appropriate spacing of the increments
may be arranged over the whole of the lot.
VIII. In case automatic samplers are available, they may be utilized for drawing increments from conveyor
belt. The setting of such machines shall be carefully adjusted to ensure that the whole thickness of
the stream is taken.
IX. The material collected from all the increments in a sub lot shall be mixed together and shall constitute
a gross sample.
5.3.2 SAMPLE PREPARATION
I. The total sample collected without exclusion of anything other than foreign materials viz. metallic
pieces, wood, bricks, concrete chips etc., shall constitute the gross sample for the lot.
II. The gross sample shall be crushed to 50 mm preferably by mechanical means, mixed thoroughly,
coned and quartered. Two opposite quarters shall be retained and rest rejected. The retained
material shall be further mixed together and same procedure of coning and quartering and rejection
shall be followed till one quarter of the gross sample is retained. The material so obtained shall be
crushed to 12.5 mm preferably by mechanical means and finally crushed to 3 mm size, preferably
by mechanical means following coning and quartering till approx. 2(two) kg of sample is obtained.
2(two) kg sample is to be reduced to 72 mesh in a pulveriser and shall be kept for analysis.
III. This pulverized sample of approximately 1.5 kg shall be divided into 3 equal parts in segments of
120 degree each and by taking each segment, three equal parts of 500 gm(approx.) of the sample
be collected in suitable polythene bags. One part shall be handed over to the colliery. The second
part shall be sealed with a slip inside the bag as well as tagged outside with information viz. (i) date
of sampling,(ii)name of colliery,(iii)place of sampling,(iv)size of coal and shall be kept as a referee
sample under the custody of DGM’s Organisation. The third part shall be sealed and tagged outside
of the bag with the above information. This part of the sample shall be sent for analysis by DGM to
laboratories as mentioned in Annexure H.
III. Cut the pile into 4 quarters along two diameters, which intersect at right angles. Retain one pair of
opposite quarters and reject the other pair. Repeat till the size of the retained sample is reduced to
the required weight.
GENERAL PRECAUTIONS
I. The place selected for preparation of sample shall be enclosed, properly roofed, well lighted and free
from draught. Where this is not possible, precaution shall be taken against loss of (a)fine wind-borne
sample (b)contamination with moisture (c) contamination with foreign matter .
II. No part of the sample shall be removed during the process of preparation & reduction.
III. Hard clean surface, free from cracks shall be selected for mixing, coning and quartering of the sample
Page 21 of 46
IV. The sampling bags for samples collected by Regional Head DGM or his representative should be
identical and shall be similarly sealed and carefully deposited.
V. Before accepting the coal samples from their authorized representative, Regional Head of DGM or his
authorized representative should examine the sample bags and sampling report
VI. Sampling report as prescribed in the Annexure - D shall be prepared in triplicate with the signature of
the representatives of colliery as well as that of DGM authorized officials.
Note: The Regional Head of DGM should send his part of sample to laboratory after codification by
removing the slip inside/outside in a group of at least 6 samples. The code number will be given by
Regional Head of DGM and confidentially recorded in a bound paged register. All the samples sent in
one lot will be in exactly similar bags and after sealing again. The code number would be given both on
the tag and inside the bag.
5.3.3 Procedures for Lab Analysis of Coal Samples
1. For the purpose of analysis of sample(s), the following BIS standards shall be followed:
a METHODS OF TEST FOR COAL AND COKE:PART I PROXIMATE ANALYSIS IS: 1350
(PART-
I) (2nd Revision) – 1984.
b METHOD OF TEST OF COAL & COKE : ULTIMATE ANALYSIS IS: 1350 (PART- IV) 1974
a IS:1350 (PART II) – 1970 (2ND REVISION WITH AMMENDMENT) :
DETERMINATION OF CALORIFIC VALUE.
b IS:1350 (PART-III)–1969 : DETERMINATION OF SULPHUR.
c IS:1350 (PART IV/sec.I) –1974 :ULTIMATE ANALYSIS: DETERMINATION OF
CARBON & HYDROGEN.
d IS: 1350 (PART IV/sec.2) – 1975:ULTIMATE ANALYSIS: DETERMINATION OF
NITROGEN.
e IS :1353-1993: METHODS OF TEST FOR CARBONISATION – CAKING
INDEX, SWELLING NO., AND GRAY KING ASSAY(L.T.)
f METHODS OF PETROGRAPHIC ANALYSIS OF COAL:IS 9127 (Part – I, II &III)
1992
c INDIAN STANDARD CLASSIFICATION AND CODIFICATION OF INDIAN COAL AND
LIGNITES (IS 770: 1977, SECOND REVISION AND FURTHER REVISION THEREOF).
When the analytical results are received from the laboratory, same should be decoded and
recorded in the register. The results shall be communicated to Coal Company along with all
relevant information, viz. colliery, seam, size fraction, declared grade/quality, place and date of
sampling etc.
Lab should use criteria of rejecting test results as per annexure I
5.3.4 Power of authorized officials for Quality Surveillance under Rule 7 of CCO
Authorized officials shall be competent to:
I. cause the owner, agent or manager of a colliery or any person engaged in or in charge of the loading
of coal in wagons, trolleys or trucks in a colliery, to adjust the loading according to the procedure laid
down by the Coal Controller regarding grades and size of coal and to remove impurities like shales
and stones from the wagons, trolleys or trucks loaded with coal;
II. detain the wagons, trolleys or trucks at the colliery or weighbridge for adjustment of loading after
inspection
III. return the wagons, trolley or trucks to the colliery from weighbridge for unloading and reloading with
the specified quantity and quality of coal.
5.4 Monitoring and review of returns filed & information submitted in compliance with Rule 5
of CCO
P a g e 22 | 46
As per the Rule 5 of the Colliery Control Rules, 2004, every owner of a colliery and every person engaged
in the business of production, supply and distribution of, or trade and commerce in coal shall submit returns
and information within such time as specified. These reports include as
Monthly return
Quarterly return
Yearly return
These reports has to be submitted by nominated owner to DGM and concerned district Collectorate. Online
submission of reports by owners is mandatory. Again mine owners should ensure proper filling of records
in order to retrieve data as per requirements. Monitoring and review is required to ensure there is no non-
compliance in terms of proper submission of returns and information. Deputy Director or officials delegated
by him should ensure that all returns and information are being submitted within time and with proper
filling.
Further for effective monitoring of reports, authorised officials of DGM shall ensure that return is being
filed by every owner of a colliery and every person engaged in the business of production, supply and
distribution of, or trade and commerce in coal.
Diagram 5.1 shows various non compliances with reference to submission of information and details and
measures to be taken to mitigate them.
Diagram 5.1: Non compliances with reference to submission of information and details and
measures to be taken to mitigate them
Page 23 of 46
Delegated person should send a reminder at start of month to all required persons for their timely
submission .Once returns/ information is received, it should be the duty of delegated person to verify the
report and information and to match with other relevant documents (e.g. dispatched amount of Coal can
be matched with Railway Return) and communicate with owners for proper justification in case of any non-
compliance. It will be duty of delegated person to continuously compile the monthly return and to match it
with quarterly and yearly return. It is also advisable that DGM should enforce submission of returns and
information through their online portal to have following advantages:
Submission of
returns/information through
online portal for proper
monitoring and review
Easy retrieval of data/information from
Transparency in data/information
anywhere
P a g e 24 | 46
Information & attachment to be provided by Colliery Owner in compliance with Rule 10 of CCO
Information Status(Provided/not provided/Not applicable)
SL No
Detail of all seams(proved, worked and in
1
course of working)
Name of Seam
1.1
Gross Mineable Reserve of Coal
1.2
Production achieved so far
1.3
Production achieved from open cast mining
1.3.1
Production achieved from Underground
1.3.2
mining
Production achieved from Development
1.3.2.1
Production achieved from Depillaring
1.3.2.2
Grade of Seams or the section of Seams at
1.3.2.2
the time of closure(All the grades can be
matched with annual grade declaration as
per Rule 4(2) of CCO,2004
Reference No/Date of previous opening
2
permission of/Name of granting authority
Date of closure
3
Production during last 3 years prior to
4
closure
Reason of Closure
5
Attachment to be provided by Colliery Owner
Attachment Status(provided/ not provided/Not applicable)
Sl No.
I. Approved annual grades can be used to verify grades of seams while monthly returns can be used
to verify tonnage mined from various seams at the time of closure.
II. If necessary, Deputy Director can initiate spot inspection to verify any of the details submitted by
Colliery owner. In addition, if any of the information/attachment is missing, Deputy Director should
instruct Colliery owners to provide as such as soon as possible.
Page 25 of 46
III. Notice of suspension/closure can be matched with regional DGMS offices also as it is mandatory
for colliery owners to submit the closure notice to DGMS office as per Rule 5 of Coal Mine
Regulation, 2017
IV. Format of notice to be submitted by Colliery owners has been provided in Annexure E.
V. Application provision should be made for opening of such suspended or closed coal mine or seam
or a section of a seam. Such application will be made before 30days of such opening
VI. Such suspended or closed coal mine or seam or a section of a seam only will be opened after
having proper permission from such authority.
VII. After proper spot inspection and satisfaction, authority will provide permission for such opening
VIII. Prior permission in writing will be required from Central Government before commencement of
mining operation in a colliery or seam or a section of a seam, in which the mining operation has
been discontinued for a period exceeding 180 days.
IX. Volumetric and tonnage quantity will be matched properly before grant of such permission
Here it has to be noted that In case, where a seam is re-opened within 6 (six) months of temporary
discontinuance, the previous grade prevailing at the time of discontinuance may be restored but when the
period of discontinuance exceeds 6(six) months, the nominated owner shall apply afresh for grade
verification by DGM.
5.6 Framework for inspection of Collieries in compliance with Rule 12 of CCR
As per the power delegated to State Government to inspect all coal mines except the mines or blocks of
Central Government/ Public Sector Undertakings, a framework has been designed here to ensure proper
utilization of said power:
I. Before the start of financial year, Regional Head should prepare a plan for frequency of inspection and
assign responsibility of inspection to a dedicated team of Deputy Directors/Mining Inspectors/Assistant
Mining Officers. Inspection of collieries will also be required if there is any non- compliance from the
colliery.
II. Assignment of particular collieries for regular inspection shall be decided by the rotation mechanism by
way of lottery to respective Deputy Directors/ Mining Inspectors/ Assistant Mining Officers. No Deputy
Director/Mining Officer/ Assistant Mining Officer should be assigned same mine inspection either in same
year or next year.
III. On a similar pattern, Regional Head will initiate any need based/ complaint based inspection.
IV. It will be responsibility of officials who are going for inspection to ensure that mine owners are complying
under rules of CCR, 2004. These officials are empowered to enter and inspect the colliery and In order
to secure compliance of these rules, they can instruct Colliery Owner to furnish any relevant documents,
which may include followings:
Mine Plan
Working Plan
Plan showing abandoned area
Plan showing flooded area
Plan showing areas on fire
Document showing production of Coal from Whole Mine
Document showing production from a Particular Seam
Document showing production from section of a Seam
Document showing approved grade of a seam etc.
V. Following inspections should be ensured by authorized officials:
Spot inspection of working face of a mine should be done in regular basis.
P a g e 26 | 46
Spot inspection of washeries also to be done.
Regular inspection of updated working plan at independent survey section.
6. Annexure
Annexure B Data required for Grade/ Quality proposals for annual/ interimly revised
Gradation/ Quality of Coal seams of mines / Siding / CHP/ CSP etc
Page 27 of 46
Annexure A: Format for Grade declaration
On the Company’s Letter Head
GRADE/QUALITY CERTIFICATE
In pursuance of provisions of sub-rule (2) of rule 4 of Colliery Control Rules, 2004,I being the
competent authority of the company, hereby declare the Grade/Quality of coal Seam Siding( No/
Name)
____________________________________________Section____________in________________
The Director,
The Directorate of Geology and Mines,
Indravati Bhawan, second floor, Block-4, Nava Raipur, Chhattisgarh
P a g e 28 | 46
Annexure B: Data required for Grade/ Quality proposals for annual/ interimly
revised gradation/ quality of coal seams of mines / siding / CHP/ CSP etc.
8. Additional Analysis results for coking properties (from Govt. Institution / NABL Accredited
laboratory preferably CIMFR, IITs, IIEST, NML-Jamshedpur, IICT- Hyderabad , IMMT –
Bhubaneshwar etc.
Sample
Mean LTGK CSN GCV( done VM Carbon Hydrogen%(dmf) Moisture
Details Random by Bomb % on %(dmf) % (60%
Reflectance Calorimeter dmf R.H.)
percent in Kcal/ Kg basis parts/100
(RO) on dmf parts unit
basis coal
Page 29 of 46
10. Analysis Results of Joint Samples:
11. Composite grade of CHP/CSP/Siding with mention of proportions of seams and grade wise
despatches in tonnes certifying the maintenance of proportion of mixing of coal from feeder
streams of collieries and distances from colliery end to the dispatch points by the Nominated
Owner, Agent or Manager of the Coal Company
12. Whether Steam, Slack are suitably graded (the arrangement for segregation should be mentioned
along with likely % of steam and slack in each Grade/Quality included & be declared).
13. In ROM coal, where averages are @ 60% steam, 40% slack, specify the arrangement for limiting
the top size of coal to 200-250 mm
14. Distance between Railway Siding to Pit-Head where surface transportation charges are levied
and the name of the Siding from where the coal will be dispatched by rail/trucks
15. Grade proposed for the year:
--------------------------------------------------------------
(Signature of the Nominated Owner with office seal)
P a g e 30 | 46
Annexure C: Format for lodging statutory complaints in respect of grades/quality
of coal
(Proximate analysis, ash%, moisture%, volatile matter% on equilibrated basis and GCV in
Kcal/Kg analyzed in bomb calorimeter on equilibrated basis i.e., samples equilibrated at 40
degrees C and 60% Relative Humidity for non-coking coals) from any Govt/NABL- Accredited.
Laboratory preferably CIMFR, IITs, IIEST, NML-Jamshedpur / IICT-Hyderabad / IMMT-
Bhubaneswar etc.
5. Detailed analysis report if available. If not, what is the basis of the complaint?
8. Any other relevant information. Like a copy of FSA or CSA executed by the consumer with the
Coal Company should be enclosed to the application.
Date:
Place
(Signature of the authorized Signatory/ Nominated owner/ for Consumer lodging the complaint with
Official Seal
Page 31 of 46
Annexure D: Format for sampling report
This is to certify that the samples were taken as per revised procedure of sampling laid down by Coal
Controller in our presence.
P a g e 32 | 46
Annexure E: Format of notice for closure of mine or seam
To
*As declared by colliery management as per Rule 4 (2) of The Colliery Control Rules, 2004
Status of overlying and / or underlying seam(s):(A vertical section of strata showing thickness of each
seam and the intervening partings in between seams and up-to-date working plan of each seam already
worked and being worked should be furnished)
7) a) Reference no. & date of previous opening permission and name of granting authority.
b) Date of closure
c) Production during last 3 years prior to closure
Page 33 of 46
d) Reason for closure (copy of closure notice to be attached if closure notice was served )
(A copy of working plan of the mine or seam at the time of abandonment / closure showing the extent of
workings at the time of closure, all the goaves, the present waterline in the abandoned workings and the
proposed layout of the seams to be worked should be enclosed.)
8) A brief note in a separate annexure MUST be attached indicating method of Development and/or
Depillaring, extent of manual mining by use of machinery and mechanical devises as approved by
DGMS before closure.
I declare that apart from the above-mentioned provisions, all other statutory provisions in force were strictly
complied with during past mining operation
Place:
Date: N.B. (Application along with requisite plans and other relevant information to be submitted in
duplicate)
P a g e 34 | 46
Annexure F- Format of Grade declaration when coal seam cannot be separate due
to method of mining
(On company’s letter head)
CERTIFICATE
Certified that the above band/bands of the coal seam cannot be separate due to method of mining in
vogue. This is also to certify that there will be no percentage (%) deduction from the production of coal
on account of the shale/bands.
Page 35 of 46
Annexure H: List of preferred laboratories for analysis of Coal Samples
Any Govt. Institution
P a g e 36 | 46
Annexure I: Criteria for rejection of suspect test results
It may sometimes happen that a test result is obtained which deviates considerably from the other test
results and therefore arouses suspicion that it may have arisen from a mistake in sampling or sample
preparation rather than in the course of normal variation. If the analyst knows that a mistake has occurred,
the test result must be rejected irrespective of its magnitude. If however only a suspicion exists, it may be
desirable to determine whether such a result may be rejected or whether it must be accepted as part of
the normal variation expected.
The process given below should be followed for determining the acceptability or rejectability of the suspect
test result:
Arrange all the test results obtained by analysing n laboratory samples in the ascending order of magnitude
and designate them as x1, x2,…,xn, where x1 is the smallest and xn is the largest test results. If xn is suspect,
calculate the value of K1 from following formulae:
Values of criterion K1 or K2
3 0.941
4 0.765
5 0.642
6 0.560
Page 37 of 46
7. Review of existing industry practices followed by Coal India Limited (CIL) and its
subsidiaries in terms of fuel supply agreement (FSA)
7.1 Quantity
7.1.1 Annual Contracted Quantity (ACQ):
I. The Seller shall supply and the Purchaser shall purchase the Annual Contracted Quantity (ACQ) of
Coal per annum, as decided by CIL within the recommendation of the State Government. Such Coal
shall be supplied by the Seller from own sources of the Seller. The mode-wise, coal field-wise break-
up of ACQ is indicated in Schedule - III to this Agreement. In the event of a truncated Year, the ACQ
shall be prorated accordingly.
II. Further Purchaser may opt for an ACQ lesser than the quantity allocated by CIL for the Year, subject
to submission of a written communication from the nominating authority to that effect. The ACQ can
be subsequently revised upward within the quantity allocated by CIL for the Year. Such upward
revision will be subject to consent of the Seller and will be allowed only once in a Year. The revised
ACQ shall be applicable on pro-rata basis with effect from the date of amendment in the Agreement.
Further, any downward revision of original/revised ACQ will not be permitted.
III. Coal sold and purchased under Agreement shall only be sold / distributed by the Purchaser to End
Users as defined herein. Further, the Purchaser shall sell Coal to such End Users at the "As
declared price of Coal" plus up to 5% margin over Base Price as service charges. The Purchaser
shall be also entitled to charge any taxes, levies and any other statutory dues as may be applicable
to the sale to the End User in the State of The Purchaser shall ensure that the Coal is sold only to
an End User and shall not be re-sold or traded.
IV. The Purchaser shall submit to the State Government, a Quarterly Return giving month-wise,
consumer-wise, unit-wise details of Coal sold. Such details should essentially include name,
address and contact no. of consumer, type & location of unit, quantity lifted during the month and
the price at which Coal was supplied for evaluation of genuine consumption and monitoring of the
same by the State Government. Such particulars shall be hosted by the Purchaser and the State
Nominating Authority in their respective websites on regular basis.
V. Its mandatory for Purchaser to ensure that Coal will be sold only to the end user. In the event of any
breach or any complaint from any quarter received by the Seller/CIL, the same shall be referred to
the State Government for examination and suitable action, if any, against the Purchaser. On receipt
of any advice from the State Government for action against the Purchaser, the Seller shall be
entitled to take appropriate action against the Purchaser including termination of this Agreement.
Such termination, however, shall not absolve the Purchaser from its obligations and liabilities under
the Agreement
7.1.2 Monthly Quantity:
The Monthly Scheduled Quantity (MSQ) shall be 1/12 th of the ACQ. It is clarified that the (MSQ)
can be varied by mutual consent and approval of the Seller and the Purchaser at the time of execution
of this agreement.
ln case any further variation in the MSQ is required by the Purchaser, the Purchaser may request the
Seller for the same by sending a written notice to lhe Seller at least 30 (thirty) days in advance and
such variation shall be subject to the express written acceptance by the Seller, and the Seller shall
have the discretion and not the obligation to provide such consent.
In case of supply by Rail, the Parties agree that if the MSQ to be lifted by the Purchaser in a month
is insufficient to form adequate load for a rake, such formation of adequate load, as prescribed by
seller, for a rake would be allowed by combining the MSQ of the next month(s) of the applicable
financial year during the Term of Agreement.
P a g e 38 | 46
I. The quantity of coal which remains unlifted within the validity period of 45 days from the date of
Sale-Order for supply through Road mode against value paid orders will not lapse and will be carried
forward with the allocation of next month and so on till the end of the applicable financial year of the
contract. However Purchaser may request not to carry forward the order and ask for refund of
applicable coal value. Not carrying forward any quantity will not be a ground to seek
waiver/reduction in penalty on account of Level of Lifting. In case of Sale Orders issued in the ending
months of the applicable financial year of the contract period i.e. February/ March, the same shall
be valid till the end of the financial year or 45 days from the date of Sale order, whichever is later.
II. In case of supply through Rail mode, the number of rakes offered but not allotted within the validity
period shall remain eligible for seeking allotment in subsequent month(s) till the end of applicable
financial year of the contract. However purchaser may opt not to resubmit the program for rakes not
allotted and ask for refund of applicable coal value.
III. However such quantity will lapse at the end of applicable financial year of the contract if the residual
quantity is less than rake load for rail mode or less than a truck load for road mode. The quantity,
which the purchaser did not book by making full payment shall stand lapsed at the end of the month.
IV. In case of bookings by Rail, the allotted rakes will remain valid for supply for the period permissible
as per Railway rules. For bookings by Road, in case any quantity remains unlifled after the expiry
of 45 days validity period of respective Delivery Orders, the purchaser will have the option to take
refund against unlifted quantities or to carry it forward till the end of the applicable financial year of
this agreement.
V. In no case annual booking of coal by Road/allotments by Rail under above process shall exceed
the ACQ.
The Delivery compensation for short delivery/lifting shall be payable by the defaulting Party to the
other Party within a period of 30 days from the date of receipt of claim. In the event of non- payment
within the due date, the defaulting Party shall be liable to pay interest. However, in the event of non-
payment of Delivery compensation by the purchaser beyond 60 days of such claim, the Seller shall
be entitled to take any or all remedies including but not limited to encashment of Security Deposit and
adjustment against the Coal value lying with Seller and/or termination of Coal supply.
7.2 Quality
The quality of the Contracted Grade of Coal to be supplied at the Delivery Point shall, as far as possible,
be within the specifications as set out in Annexure G. The Seller shall take all reasonable steps to remove
stones above 250mm (in size), shale and extraneous matters before the loading of the Contracted Grade
of Coal. A complaint, if any, regarding the quality of the Contracted Grade of Coal shall be made by the
Purchaser giving specific details of the consignment to the General Manager (sales and marketing) of the
Seller
The Purchaser shall be required to inform the Seller in writing, on the Signature Date, whether it proposes
to avail third party sampling from a Third Party Agency in accordance with the terms hereof. In the event
the Purchaser intimates the Seller that it is
Page 39 of 46
desirous of availing third party sampling by the Third Party Agency, such facility shall be allowed at
the Delivery Point only and such third party sampling shall be undertaken throughout the Term in
accordance with the procedure set out in Annexure G In the event that the Purchaser is desirous of
availing third party sampling by the Third Party Agency and for any reason whatsoever, the third party
sampling cannot be conducted in accordance with the procedure set out in Annexure G, the
Purchaser may opt for joint sampling and analysis to be carried out by the Seller in presence of the
Purchaser at the Delivery Point in accordance with such procedures as may be agreed upon between
the Parties; and
not desirous of availing third party sampling, the Purchaser would not be entitled to avail the said
facility at any time during the Term. Notwithstanding anything to the contrary contained herein, in the
event that the Purchaser does not opt for third party sampling by a Third Party Agency, it shall be
obligated to pay, throughout the Term, the As Delivered Price in respect of the Contracted Grade of
Coal delivered to it and shall not, in any way be entitled to benefit from or rely on the results of third
party sampling availed by any other purchaser of Coal. In case of a variation of Grade of Coal
(decided on the basis of third party sampling by a the Third Party Agency) as compared to the
Contracted Grade of Coal, the Purchaser shall pay the Notified Price (or the latest Indexed Notified
Price, as the case may be) of the supplied Grade of Coal plus the Winning Premium of the supplied
Grade of Coal, without factoring in royalty payments, taxes etc.
P a g e 40 | 46
Annexure G: Procedure for Third party sampling for non-power sector
a. Third Party Agency (TPA) Under Different Modes Of Supply
a.1. Third Party Agency for dispatches by Rail / conveyor Bert/Rope way/pipeline
a.1.1. In case of off-take of the contracted Grade of coal via Rail / Conveyor Belt / Rope way / Pipe line,
the purchaser may choose a third party agency to conduct the third party sampling from list of
independent third parties provided by CIL from time to time
a.1.2. The third party agency chosen by the purchaser shall conduct the third party sampling throughout
the Term / period as applicable, provided that the purchaser may change (on reasonable grounds)
the third party agency chosen by it with prior written approval of the Seller. In the event that the
seller does not accept the request of the purchaser for change in the third party agency the
purchaser shall have the option to:
a.1.3. terminate the arrangement for third party sampling availed by it hereunder, in which case, the
purchaser shall not be entitled to resume the third party sampling at any time during the remainder
of the Term or
a.1.4. to continue the arrangement for third party sampling for the remainder of the term with the existing
third party agency chosen by it
a.1.5. Third party sampling shall be done at the Delivery point and the costs in this regard shall be borne
equally by the Purchaser and the Seller.
c.2. Collection of Samples of Coal Dispatches by Road: Samples shall be collected source-wise and
grade-wise on daily basis round the clock, depending upon the timing of loading at respective
dispatch point(s) only from the trucks of the purchaser (s) who have opted for third party sampling
("Purchasers Opting for Sampling") in the manner specified below:
c.2.1. The first sample of Coal shall be collected from the first truck at the Delivery Point belonging to a
Purchaser Opting for Sampling. Once a sample is collected from the first truck as stipulated above,
samples of Coal shall be collected from every 8th (eighth) truck after the truck from which the first
sample has been collected. In the event that such 8th (eighth) truck does not belong to a Purchaser
Opting for Sampling, then the next truck belonging to a Purchaser Opting for Sampling shall be
deemed as the 8th (eighth) truck and a sample shall be collected from such truck. The same process
shall be repeated for every 8th truck thereafter
c.2.2. The spot at the top of the truck will be leveled and at least 25 cm of Coal surface shall be
removed/scrapped from the top and the place will be leveled for an area of 50 cm by 50 cm for
collection of sample.
c.2.3. About 30 kg of the sample shall be collected from each truck by drawing 6 increments of approx. 5
kg each with the help of shovel/scoop.
c.2.4. All the samples collected from source wise, grade wise from every 8th truck in accordance with
paragraph (ii) as above on daily basis shall be mixed together to form a gross sample.
c.3. Collection of Samples of coal from Conveyor Belt / Ropeway / Pipelines
c.3.1. Samples shall be taken Iot-wise, grade-wise
c.3.2. The quantity that passes over the conveyor (directly or through rope way / pipeline) in a day (00 hrs
to 24 hrs) constitutes one lot, which needs to be divided into a no. of sub-lots for the purpose of
sampling. No. of sub-lots to be divided & quantity of gross sample to be collected from sub lots shall
be as below:
P a g e 42 | 46
Wt. of the Lot (Tons) No. of sub-lots/gross Samples Qty to be collected (Kg)
2 100
Up to 500
3 150
501 to 1000
4 200
1001 to 2000
5 250
2001 to 3000
6 300
Over 3000
Example
• If the quantity to be passed in a day over the conveyor is 600 tons (which is 1 Lot), then there will
be 3 sub-lots and total sample quantity will be 150 kg
• 1 gross sample shall be collected from 1 sub-lot, @ 50 kg per sub-lot. Thus, total 150 kg gross
sample shall be collected from 3 sub-lots over the whole day, i.e. from 00 hrs to 24 hrs
• If conveyor is operated for l5 hours in a day, spacing the collection of 150 kg over 15 hours of
conveyor operation, we need to collect 10 kg every 1 hour (quantity & intervals can be mutually
decided by seller & purchaser depending on the running time of the conveyor and the quantity that
passes in a day)
c.3.3. The belt needs to be stopped at the scheduled time to facilitate collection of the samples manually.
c.3.4. While collecting the sample, the scoop should traverse the entire cross-section of the conveyor belt,
drawing app 5kg per increment
c.3.5. There shall be one gross sample for the day mixing all the gross samples collected from all the sub
lots during a day.
e. Analysis of Samples
e.1. Total Moisture determination shall be done by the TPA at the nearest laboratory of the Seller and
remaining tests / analysis for determination of moisture, ash, GCV on equilibrated Basis shall be
done by the TPA at NABl-accredited laboratory
e.2. Analysis of sample(s) shall be carried out as per latest version of IS 1350 (Part-I)-1984 for
determination oi Total Moisture, Equilibrated Moisture, Ash and Volatile Matter and as per latest
version of IS 1350 (Pa(-II), 1970 for determination of GCV'
Proper analysis records like electronic print out of the analysis results obtained from the Automatic Bomb
Calorimeter, source wise, grade wise and date wise details of coal samples received etc. shall be
maintained at the Laboratories where the coal samples are analyzed by the Third Party Agency for
identification and reconciliation of the analysis results.. Coal samples shall be analyzed only at an NABL
Accredited coal testing Laboratory
Monthly statements containing the details of each and every analysis result source wise, mode wise, grade
wise and consumer wise finalized during a month based on analysis by a Third Party Agency or referee
analysis, as the case may be, shall be prepared by the TPA and submitted to the seller and
purchaser(s)before 5th of the following month stating inter alia, the quantity of Coal covered against the
respective analysis results. Copies of the monthly statement / report shall be submitted by the Third Party
Agency to
f.1. the General Manager (Quality Control) of the Seller or his representative; and
f.2. the representatives of the Purchaser (in case of mode other than road) or the representatives of all
the purchaser(s) who have requested for third party sampling (in case of road mode), as applicable.
g. Joint Sampling: Procedure of collection, preparation and analysis of coal sample will be same with
following necessary changes:
g.1. Sample will be collected and prepared by Seller's facilities.
g.2. The final laboratory sample will be divided into two parts. First part Set-l of sample will be analyzed
by seller and second part Set-ll will be kept for referee analysis.
g.3. Analysis of the sample will be done in Seller's laboratory
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g.4. Cost of sampling and analysis will be borne by the seller, so there will be no requirement of sharing
of cost of sampling between seller and purchaser.
g.5. Cost of referee sample analysis in a designated Government Laboratory including cost of
transportation of sample will be borne by the disputing party.
g.6. Purchaser shall associate / witness in throughout the collection, preparation and analysis. However,
absence and / or failure of Purchaser(s) to associate / witness shall not be considered as a ground
for disputing the process / results.
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8. Capacity Addition and review of facilities with DGM
8.1 Quality addition:
All concerned Mining Inspectors, Assistant Mining Officers, Mining Officers need to have
practical training regarding collection of coal samples in following cases(Annexures and clauses
have been quoted for theoretical training)
Seam Sampling (Channel Sampling): Annexure H
Sampling from static loaded wagons: Clause 5.3.5
Sampling from loaded trucks: Clause 5.3.6
Sampling from conveyor belts: Clause 5.3.7
CHNSO Analyser
“60% humidity coal standard material”
8.2 Quantity addition
All districts who have got Private and State owned coal Mines need to have at least one Deputy
director, Mining Officer, Mining Inspector and Assistant Mining Officer, who will be required to
fulfill the compliance in terms of CCR, 2004 else responsibility need to be given to other
districts/regional officers
A surveyor will be required for mining surveying purposes (Stock measurement, Face
measurement)
These districts also need to have one dedicated person to look after all administrative
works(Monitoring of returns, data analysis etc)
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