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

2O11-2012

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DECLARATION
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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ACKNOWLEDGEMENT
Inspiration, Encouragement and Guidance forms the backbone to success.

The satisfaction that accompanies the successful completion of project would be incomplete without mention of those people who made it possible through guidance and encouragement

I would like to express my sense of gratitude to all those who helped me in so many ways in preparing the training project entitled “Training on Sales and Marketing of coal” in C.C.L. I am thankful to Mr. G. Purohit (G.M. HRD) of C.C.L Ranchi for permitting me to conduct the survey on this topic at C.C.L. I would also like to thank Mr. M.S. Bhutani Sr. Manager and Miss. Nishi (Sr. Sales Officer) under whose supervision and guidance I was able to complete this project.

Shabnam Praveen

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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 information of study is given further in form of different chapters.

detailed

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INDEX

CHAPTER

PARTICULARS

PAGE NO.

01. 02. 03. 04. 05. 06.

INTRODUCTION PROFILE OF THE ORGANISATION RESEARCH METHODOLOGY CONCEPTUAL BACKGROUND DATA PRESENTATION,ANALYSIS AND INTERPRTAETION FINDINGS AND CONCLUSION BIBLIOGRAPHY ANNEXURE

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CHAPTER 1 INTRODUCTION 6 .

operating is an many states. the sole owner of CIL. detailed exploration followed by projectisation. CIL welcome private participation in coal beneficiation.INTRODUCTION • Coal India Ltd : Indian coal at the pithead is the cheapest coal in the world with low sulphur content. besides restructuring government’s holding in the company. Indian coal is eco-friendly. has sanctioned major policy support package which. Participation of international coal mining companies of development of underground coal mines with modern technology is also receiving CIL’s consideration. Identification of coal reserves. CIL’s activities comprehensively cover A to Z in Coal extraction. Coal Mining is also being open up to private investment. The government of India. CIL’s business plan therefore aims primarily to translate these strong economic fundamentals of coal into prosperity for the country and the company. has progressively freed and coal prices administrative control. design and implementation of projects and optimizing operations in 465 existing underground and open cast mines. With eight wholly owned subsidiary companies. 17 beneficiation plants and one coal carbonization plant are some in CIL’s range of activities. 7 .

1971 Coking Coal Nationalization. of Andhra Pradesh) and the captive mines of TISCO. the third largest coal producing company in the world. 1975 Establishment of Coal India Ltd. Eastern coalfields Limited (ECL). 5. South Eastern Coalfields Limited (SECL). Government of India. Tagore and other company amalgamated into the Bengal Company Ltd. It was formed as a public sector undertaking in November 1975 for reorganizing the nationalized coal mines and ensuring integrated development of coal.COAL INDIA: Coal India Limited. for the entire coal industry in the country barring the coal Mines in Andhra Pradesh (which comes under the jurisdiction of Singareni Collieries Co. Coal Tar Coal Gas Coal Chemicals etc. The ranges of products are: Raw Coal (Coking and Non Coking). Coal India presently contributes 90% of the total coal production in India. Ltd. Mahanadi Coalfields Limited (MCL). 1815 Opening of the first shaft mine near Raniganj town. Washed Coal. 1973 Non-Coking Coal Nationalization. 13.of India undertaking 1 st phase of coal nationalization. Bharat Coking coal Limited (BCCL). the turning point Coal industry for India. 6. CIL have now 8 subsidiaries viz.4 lakh employees with headquarter in Calcutta is a holding company under Ministry of Coal. 1956 Formation of National Coal Development Corporation Ltd. 1855 Opening of railway from Calcutta to Raniganj. 3. 1843 M/S Carr. 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. 2000 De-regulation of Coal pricing and distribution of coal. 8 . IMPORTANT EVENT 1. 1853 Commencement of Railway service in India. and Central Mines Planning and Design Institute Limited (CMPDIL). 1985 Northern coalfields limited (NCL) and south eastern coalfields Limited (SECL) carved out of CCL and WCL. 2. Western coalfields Limited (WCL). 9.Central Coalfields Limited (CCL). 1992 Mahanadi Coalfields Limited (MCL) formed out of SECL to manage the talcher and IB Valley Coalfields in Orissa. the prime source of energy. 7. Soft coke &Hard Coke. 12.(A public sector undertaking of Govt. 8. Northern coalfields Limited (NCL). This was the first joint stock company in India 4. 1743 Commercial production of coal by East India Company for the manufacture of arms and ammunitions. 10. Middling’s. having about 6. 1862 Coal mine began in central provinces Jharia Coalfields by Govt.(CIL) 11. SAIL-IISCO & DVC.

9 . Marketing of coal as main product Acquisition of Coal mining. To carry on business of coal mining.14. Policy formulation and advisory functions. sale and disposal of Coal and bio-products. 6. Exploration and prospecting. 9. MCL. coke manufacture in all their respective branches. Production. Reorganization and reconstruction of Coal mines taken over by Government. 3. 2008 Coal India accorded “Navratna” status 16. NCL. 8. 2011 Coal India accorded “Maharatna “ status OBJECTIVE 1. 2. conferred “Mini Ratna” status. 15. 2007 Coal India & five of its subsidiaries viz. And the number of respondents chooses was 60 who was surveyed at Central Coal field Limited in Darbhanga House Ranchi. SCOPE The scope of the study is limited to the city of Ranchi only.SECL. 4. 7. 5. To act as colliery and mine proprietors.WCL. To manufacture and sell Coal as a patent fuel.

Sales and Marketing of coal process if done in proper way helps to increase organization productivity.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. CHAPTER 2 PROFILE OF THE COMPANY 10 .

CCL strive to be the leading international player in energy sector through best practices from mine to market. Innovative. Competitive & Profitable Coal Mining Operation to achieve Customer Satisfaction 11 .PROFILE OF THE ORGANISATION: Name: CENTRAL COALFIELD LTD Address: RANCHI Location: CCL Headquarter Darbhanga House. Ratu Road. MISSION “To become a World class.friendly mining” Being the domestic leader. Ranchi (Jharkhand) Pin-834001 VISION “Committed to create eco.

The private railway companies started mining activities in the year 1850. unhealthy mining practices and sole motive of profiteering.In the pre-nationalized era coal mining was controlled by private owners. Coal mining first started in the year 1815. The objective of nationalization was the conservation of the scarce coal resource. Again in the year 1975 CMAL was re-organized as Coal India Limited (CIL). After independence a greater need for coal production was felt in the First Five Year Plan. 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. The miners lived in sub-standard conditions as well. The railway collieries were transferred to the coal board in the year 1944. conservation and scientific development. Coal mining through national sector first started w.e.f 01-10-1956 with the establishment of National Coal Development Corporation (NCDC).As top priority” • The Mission of CCL is to produce and market the planned quantity of coal and coal products efficiently and economically with due regard to safety. In 1951 a Working Party for the coal industry was set up. Subsequently. Before proceeding further it should be noted that CCL is a subsidiary of CIL and is completely owned and operated under their guidelines. After nationalization of non-cocking coal sector in 1973 became the central division of Coal Mines Authority Ltd. and suffered from their lack of interest in scientific methods. Central division of CMAL was known as Central Coalfields Limited (CCL). • HISTORY OF THE ORGANISATION The Indian energy sector is largely dependent on coal as the prime source of energy. particularly coking coal in India. conservation and quality. which suggested the amalgamation of small and fragmented producing units. The main thrust of CCL in the present context is to orient its operations towards market requirements maintaining at the same time financial viability to meet the resource needs. in the context of safety. The railway board nationalized the coal mining in 1925. 1971 and 12 . the Government of India took over all coking coal mines on October 16.

leading to the formation of a formal holding company. Following the state takeover of non-coking coal mines.nationalized them on May 1. Bharat Coking Coal Limited (BCCL) was thus born.Coal India Limitedon November 1. 1975. Coal Mines Authority Limited (CMAL) was formed in 1973. ADMINISTRATIVE SETUP Chairman (Coal India Limited) Board of Director+ CMD of all subsidiary (CCL) Director (Personnel) Director Director (Project & planning) Director (Operation) (Finance) 0 0 GM (Sales & Marketing) Deputy Chief Sales Manager 13 . 1972.

Sales Manager Deputy Sales Manager Senior Sales Officer Sales Officer CHAPTER 3 RESEARCH METHODOLOGY 14 .

The idea behind this type of research is to study frequencies. The main goal of this type of research is to describe the data and characteristics about what is being studied. 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 15 . and other statistical calculations.RESEACH METHODOLOGY TOPIC:” Study on Sales and Marketing of Coal”: with special reference to C. Although this research is highly accurate. 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.L.C.” 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. it does not gather the causes behind a situation. averages. Research Methodology: A system of models. Ranchi. Descriptive research is mainly done when a researcher wants to gain a better understanding of a topic for example.

DATA TYPE: Primary Data and Secondary Data. Primary Data: The data collected from the field under the control and supervision of an investigator. Sources: a) Various Newspaper b) Various websites Some b 16 .Data collected from sources which have already created for the first-time use and future uses.so has to carry out research in order to gain a better understanding. Telephone interview. Sources: a) b) c) d) Observation method Personal interview. Descriptive research is the exploration of the existing certain phenomena. Mail survey Secondary Data:.applications. EXPLORATRY Research: Exploratory Research is an initial research which analyzes the data and explores the possibility of obtaining as many relationships as possible between different variables without knowing their end.. It is quantitative and uses survey’s and panels and the also the use of probability sampling. This means that a general study will be conducted without having any specific end-objective expect to establish as many relationships as possible between the variable of the study.

CHAPTER 4 CONCEPTUAL 17 .

It was designed to suggest that we have a balance mix of marketing in our marketing plan.BACKGROUND MARKETING MIX The marketing mix was first developed by McCarthy over 40 years ago. 18 .

g. attending exhibitions). sales promotions (e. PROMOTION This includes advertising.Element of the marketing mix-the 4 Ps PRODUCT Defining the characteristics of our product or service to meet the customer’ needs. personal selling (e. special offers). Defining on a pricing strategy.g. PRICE. 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. and atmospherics (creating the right impression through the working 19 . Even if we decide not to charge for a service. it is useful to realize that is still a pricing strategy.

PROFILE OF THE PRODUCT The primary product of CCL is coal. of a library) and where a service is.g.environment). Since then other expert have looked at the marketing mix and suggested it is much deeper in that business success is driven by PEOPLE and PROCESS. It produces different types of coal which are:COKING COAL: 20 . Public Relations are included within promotion by many marketing people (through PR people tend to see it as a separate discipline). PLACE Looking at location (e.

when heated in the absence of air. ceramic. • • These have comparatively less coking properties than coking coal Mainly used as blend-able coal in steel making. paper. form coherent beads. resulting in value addition of coal due to reduction in ash percentage.COKING COAL: These are coals without coking properties. fertilizer. Also used for hard coke manufacturing SEMI COKING COAL: These coals. 1. Mainly used in steel making and metallurgical industries 3. Such coals are blended with coking coal in adequate proportion to make coke. glass. merchant coke manufacturing and other metallurgical industries NLW COKING COAL: This coal is not used in metallurgical industries. NON. This coal is used for power utilities and non-core sector consumers. • • Used in manufacturing of hard coke for steel making Beneficiated and washed non-coking coal is used mainly for power generation 21 . with strong and porous mass called coke. this coal is not acceptable for washing in washeries. free from volatiles. 1. These have coking properties 2. Mainly used as thermal grade coal for power generation 2. chemical and brick manufacturing . Also used for cement. • • 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. form coherent beads not strong enough to be directly fed into the glass furnace.These coals. when heated in the absence of air. Because of higher ash content. and for other heating purposes HARD COAL: Hard coke is formed from coking/semi-coking coal through the process of carbonization.

• 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. etc COAL FINES / COKE FINES: These are the screened fractions of feed raw coal and LTC coke / CIL Coke respectively. as a fraction of feed raw coal. • • used for power generation Also used by domestic fuel plants. cement plants. • Used in furnaces and boilers of industrial plants as well as power houses. environment friendly product of the Dankuni Coal Complex. sponge iron and other industrial plants MIDDLINGS: Middling’s are by-products of the three stage coal washing / beneficiation process. • Used for Fluidized Bed Combustion (FBC) Boilers for power generation. as a fraction of feed raw coal. road repairs. industrial plants. etc. obtained through low temperature carbonization. CIL COKE/ LTC COKE: CIL Coke/ LTC Coke are a smokeless. COKING COAL 22 . hotels. pharmaceutical industries. obtained from the Dankuni Coal Complex and other coke oven plants. REJECTS: Rejects are the product of coal beneficiation process after separation of cleans and / or middling’s. etc. • • Used in furnaces and kilns of industrial units Also used as domestic fuel by halwais. briquette (domestic fuel) making.• Beneficiated and non-coking coal is used by cement. land filling. dye. The parameters of classification of coal are:A. etc. brick manufacturing units. oil.

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 A UHV Range (Kcal/Kg) 6200-6299 23 .Grade Steel-1 Steel-2 Washery-1 Washery-2 Washery-3 Washery-4 Parameters Ash not exceeding 15% Ash exceeding 15% but not exceeding 18% Ash exceeding 18% but not exceeding 21% Ash exceeding 21% but not exceeding 24% Ash exceeding 24% but not exceeding 28% Ash exceeding 28% but not exceeding 35% B. NON COKING COAL Grade A B C D E F G Exceeding 6200 Exceeding 5600 but not exceeding 6200 Exceeding 4940 but not exceeding 5600 Exceeding 4200 but not exceeding 4940 Exceeding 3360 but not exceeding 4200 Exceeding 2400 but not exceeding 3360 Exceeding 1300 but not exceeding 2400 UHV Range (Kcal/Kg) C.

Coking Coal Washeries 1 Central workshop 5 Regional workshop Workshop Operating Coalfields 6 (East Bokaro.T 19.T 33.023B. West Bokaro.B 5600-6199 E.539B.T (48% of total reserves) 24 . South Karanpura. Ramgarh & Giridih) Coal Reserves (up to 600 meters) Medium Coking Coal Non-Coking Coal Total Reserves Proved 14. North Karanpura.T 16.562B.006B.HARD COKE Grade By Product Premium By Product Ordinary Beehive Premium Beehive Superior Beehive Ordinary Ash % Not exceeding 25% Exceeding 25% but not exceeding 30% Not exceeding 27% Exceeding 27% but not exceeding 31% Exceeding 31% but not exceeding 36% Presently CCL Has Number of Mines Washeries 59 Mines (22 Underground& 37 Opencast Mines) 7 Washeries 4 Medium Coking Coal Washeries 3 Non.

03.12.Kms COAL RESERVES (UPTO 600 METRES) PRICE DOMESTIC PRICE FIXATION Government of India deregulated the prices of Non-Coking Coal of grades A.03.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. to fix coal prices for grade E.2007 25 . on 12.1997.1996. CIL is free to fix the prices of such grades of coal in relation to the market prices.01. Government of India deregulated the price of non-coking coal of grade D. B. CIL fixed the prices of deregulated coal from time to time and last such revision has been made on 12. Coking coal and Semi/Weakly coking coal on 22. Pursuant of the above.Total Area of Operation 2600Sq.2000. Hard Coke and Soft Coke and also allowed Coal India Ltd. Subsequently. & C.

direct feed Coal. Long Flame Coal. & Weakly Coking Coal.Grade wise Basic Price of coal at the Pit-head excluding statutory levies for Run-of-mine (ROM) Non.Long-Flame Coal. Coking Coal. A B 1340 C 1120 D 900 E 680 F 530 G 370 ECL(for 8 1490 units vide Annex II) ECL/Mugma 1710 (for 16 units vide Annex IV) ECL/ Rajmahal BCCL CCL NCL SECL MCL 1440 1470 1350 1190 1160 1520 1300 1080 860 640 420 1310 1330 1220 1110 1030 1090 1110 1000 950 860 900 910 840 800 720 890 720 720 670 660 560 760 570 570 530 520 440 610 410 410 390 390 320 26 . Semi Coking 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 company may have a well designed product.PROMOTION Promotion is the development and discrimination of persuasive communication about the offer designed to attract customers and to persuade them to act. promotion and selling are synonymous with marketing. This means that the rate of promotion in the marketing mix depends on the role of the other elements of the marketing mix. From time to time. The company promotes the buyers by the service. they do advertise through media regarding the quantity. place and price of coal available for sale. sales promotion and publicity. quality. but promotion certainly represents a large part of the marketing effort. In its broadest sense it encompasses all selling activities. personal selling. The service provided to the customer at the time of bidding through spot e-auction and forward e-auction. but if it is of course only a part of the marketing mix. in general and CCL. To many consumers. with a price and a distribution system appropriate to its target market but if it is unable to reach that market then all its default will have been in vain. in particular. 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. Spot e-auction is held four times 27 . 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. There is a lot of promotional activities in CIL.

The UNDP-GEF project will support recovery and use. is aiming at playing a more purposeful role in establishing itself as the prime supplier of energy to the nation. 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. Through representative demonstration plants. with an impressive track record in meeting energy needs by registering a growth in production in excess of 5% annually over the years. UNDP Demonstration project: A demonstration project named “Coal Bed Methane” recovery & commercial utilization has been taken by the Govt. CIL is involved in 2 nos. In this respect. After e-auction date the product dispatch to their customer. The project had been sanctioned by Govt. Coal Bed Methane (CBM) B. of India during Sept.in a month & forward e-auction will be held quarterly for long term requirement of customer. of India in collaboration with United Nations Development program & Global Environment Facility. km. the project will introduce advanced techniques of gas resource assessment and recovery and also utilization methods relevant for India Coal-mining conditions. of CBM projects: C. respectively on nomination basis to the consortium of CIL and ONGC. First bore hole drilled up to 1059.30. but also exploring the possibility of expanding its horizon in harnessing the potential of nonconventional energy source as also to expand its pressure beyond the boundaries of our country. CIL ONGC JV: Govt. 28 . CIL has not restricted itself within the conventional gamut of coal mining. of India through has allotted 3 blocks. Company registered in MSTC site according to terms and condition. Once in Raniganj and other in Jharia Coalfields approx. Work is in progress. of 356 and 85 sq. Petroleum Exploration License for both the blocks has been obtained from respective state Govt. already taken in this direction are summarized below: A. 1999 and the project is now under implementation at Sudamdih and Moonidih mines at BCCL. WHAT’S NEW New Initiatives taken by Coal India Ltd. The various initiatives. Seven days before buyers have to pay money for the eauction. CIL. Drilling is in progress.

Textile 10. PEOPLE (CUSTOMER) TYPES OF CUSTOMER 1. A total of 3982. 1. Existing Customer 2.2004 by deployment of 3 Rigs. transparent and above all. 8 no. One of CMPDI and one of NEC. At Raniganj CBM block. beneficial to all those users of Coal who do not have official channel to purchase Coal. drilling started on 26. E-Marketing of Coal The sale of Coal through e-auction scheme is considered to be the most rational system of sale of Coal through which it is at the same time objective. Brick making 7. Steel Industry 2. Chemicals 8. CBM related test has been carried out. equitable.State agency 12. CPSU (central/public sector unit) 11.65 MTs have been drilled since commencement. A total of 8703. of slim hole drilling from CIL end is complete since 30.50 MTs have been drilled since commencement. Sponge Iron 5.05. Paper 9. CPP (Captive power plant) 6. Fertilizer 4.12.2006 by deploying 2 drilling Rigs. either because they are new units or because they were closed down and subsequently revived after fresh efforts and require Coal to start their operation. New Customer Following are the list of customer:1.Other 29 . Power 3.At Jharia.

Jharkhand Orissa Madhypradesh Chhattisgarh Assam Maharashtra West Bengal Utter Pradesh 30 . Gidi washery. 6. HAZARIBAG 9. Sirka KDH. 4. KUJU8. 5. 2. 4. saunda. RAJHARA5. NORTH KARANPUARA4. tarmi. 5. 7. RCM(Rai. Chainpur SIDINGS Bhurkunda. 3. BOKARO & KARGALI10. churi manki) Rajrappa Washery NR. PIPARWAR6. 8. 8. DHORI11. 7. saunda. 9. BARKASAYAL2. Delhi Jharkhand Bihar Orissa West Bengal Punjab Haryana Utter Pradesh Jammu Kashmir PLACE (COAL INDIA LIMITED) 1. RAJRAPPA7.AREA OF CCL:AREA 1. 3. central. Dhori new Jarangdih II Bachara. Gridih Selected dhori. Dakra PLACE OF DISPATCH (SUPPLY) FROM CCL:1. 6. KATHARAJarangdih I. 2. sayal Gidi A. ARGADA3.

The major challenge of increasing production however. For extracting coal present at greater depth mining is done by underground method. ii. Men and material are also transported to the mine through conveyers. a shallow hole is dug out and tunnels are made in various directions and coal is extracted from there. 1. This method is used when coal is present at a depth greater than 10-150 feet. Shoves. After the removal of coal empty place is filled with send. The annual production of raw coal which was 15 million tonnes in 1973-74 (the year of nationalization) touched the level of 47. UNDERGROUND MINING In some areas coal is present under deep layers of overburden. Singrauli in M. SHAFT METHOD By shaft method. which include Coal Cutting Machines. coal is removed through Heavy Earth Moving Vehicles.079 million tonnes in 2009-2010. 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. DISPATCH AND SALE CCL has maintained an upward trend in production. opencast mining is done to extract the coal. mud. In this method explosives are used to break the surface. This method is used when coal is present at a depth greater than 300 feet. Overburden i. coal is extracted and removed from underground through lift. Underground mining is of two types:i.e. INCLINE METHOD By incline method of mining. dumpers etc and then by blasting. when two of the major coalfields viz.PRODUCTION.P and Talchar in Orissa went out of its jurisdiction with nearly 40% of its annual production. came after the re-organization of CCL’s jurisdiction in 1986. Dumpers etc. OPENCAST MINING In some areas where coal is available near the surface. CUSTOMERS 31 . rock etc is first removed by using shoves. Men and material are also transported to the underground through lift. 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.

HSEB. UPRVUNL • TVNL (Tenughat Vidyut) Nigam Ltd. • NTPC (National Thermal Power Corporation) • DVC (Delhi Vidyut Corporation) 1. OTHERS • Cement industries and other Private Parties. POWER SECTOR • State Electricity Boards. These Government Parties also make payments are taken through demand draft or cheque. STEEL SECTOR • SAIL (Steel Authority of India Limited) 1. PRIVATE STEEL PARTIES • TISCO • IISCO & VSP 1. . SALE PROCEDURE Types of sale Cash Sale Credit Sale (6 – 7%) (92-93 %) CCL sells coal in cash basically to private parties like: • • • TISCO IISCO VSP 32 As its clear from the table above around 93% of the total sale is made on credit basis. In case sale payments are taken in advance before dispatching the coal and payments are taken through demand draft or cheque.1. PSEB. DVB.JSEB. And its only given to Government Parties.

Pay loader WEIGHBRIDGE:1. 6. Underground(31) METHOD OF LOADING:1. Rail Road Belt Trolley Ropeway Merry go round METHOD OF MINING:1. 3. Open cast(32) 2. 4. 5. 2. Statics 33 . CHP 2.MODE OF TRANSPORTATION:1.

In motion RAILWAY ZONE COVERED BY CCL:1. South eastern railway-Rajrappa 2. 34 . -Gridih East central railway -Rest area SECTOERWISE DESPATCH:- Sector wise dispatch in tonnes. Central railway 3.2.

2. 35 . 3. designed for rapid loading and unloading. The number of transfers involved which may cause degradation of coal. Where the same rolling slack. The access at the consumer’s premises. The type of coal to be transported. 4. 5. The commercial vehicle use for this purpose differs mainly in the method of unloading. The facilities at the consumer’s premises. 2. by this method has been almost superseded by the kind transport.Every year increase sector wise dispatch in tonnes DISTRIBUTION (METHOD & PROBLEMS) FACTORS AFFECTING CHOICE OF TRANSPORT METHOD 1. WATER In the past costal city and inland water ways were used extensively for transportation of coal. The amount of coal to be transported. The facilities at the loading point. 7. The distance to be transported. 6. 3. 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. ROAD Small proportion of coal used by the industries is carried by road. AVAILABLE MEANS OF TRANSPORT 1. travels between supply point and consumer.

but at a time when factories in North and South India. Passing the buck is a time honored preoccupation of the railways of Coal authorities. Railways 2. The cost of sub stantially higher than the rail freight. of wagons. thousand miles away from pitheads. Coal India officials blame railways for the latter’s inability to supply adequate no. which aims at minimizing oil consumption and maximizing coal consumption. Energy Policy. Roadways Problem in Railway Transport Currently 75% of the total dispatches are by rail transport. 36 . Problem in Roadways Transportation According to the estimates made by COAL INDIA about 20% of the dispatches are made by road. 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. It is paradoxical that Coal India has added 6 million tons of coal to its slack. the current practice goes completely again the professed intension of the Govt. Road transport may not be considered uneconomical within a 100 km radius of pithead . Consumers whose requirement cannot be met due the poor wagons supply are constraints to life by road by paying higher prices. CIL does not encourage the road dispatches due to its certain disadvantages. 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. Hence Railways are the most important means of transport of Coal & Coke. even when consumers were in distress due to the scarcity of Coal/Coke.PROBLEM IN TRANSPORTATION OF COAL 1. are transporting by truck. While railways speak man complain of loading of wagons.

whose annual consumption is less than 500 metric tonnes are eligible to get through state agencies is 4200 tonnes per annum. 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. For the non-core sector 37 . core and Non-core. 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. (CIL) at fixed price to be declared. 3) Other Consumer: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. including independent power plants. 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. the regular’s provisions applicable there to and other relevant factors. internal.e. through fuel supply agreement (FSA) by coal India Ltd. The CIL and Govt. Power Utilizes.’subsidiary companies though FSAs. If the quantity is more than 4200 tonnes per annum will take coal through Coal India Ltd.core sector.NEW COAL DISTRIBUTION POLICY As we already know that there are two types of sector i. to be fixed and declared by CIL. 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 . At present small and tiny consumers in non. The remaining 25% of coal get by e-auction as their preference.

fertilizer LOA. After issuing letter of assurance they have to enter into FSA and then FSA would be completed within three months. 4) Small Consumers & medium consumers:Small & Medium consumer like smokeless fuel. The quantity allocated to this sector may be received on the basis of their performance in the beginning of every year. CPPS. based on various facts. CIL may decide a different level. 6) Policy for new consumers:New consumers have to be allocated the coal after issuing letter of assurance (LOA) valid for 24 months for power sector. The price charged to such agencies would be same as notified price as applicable to other consumers. 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. LOA will be issued by the CIL to the applicant consumers consequent upon payment of EMD to the coal company. For allocation they have to deposit “Earnest money deposit” (EMD). they have to be entered in FSA by showing satisfaction level document of they to go state guises. the fuel supply agreement would be based on firm commitment and compensation for default in performance on either side. with the approval of board of directors. brick kiln etc. Till further the state Govt. 5) Replacement of linkage system by Fuel Supply Agreement (FSA):If the buyers do not maintain continuation in FSA within six months in a year then they may be allocated the coal at auction price. central power utilities. The amount of EMD could be initially issued at 5% of the value of annual coal requirement. Allocation of quantity is based on consumption pattern in past. 7) Letter of assurance for new consumers:New Consumers from state. Coal India Ltd. 8) E-auction of Coal:38 . are based on prevailing norms and recommendation of administrative ministry.and annual requirement is less than 4200 tonnes. The agency may charge freight up to 5% Margin as service charge. However. If EMD failure occurs. Independent power producers. then 5% of the value is kept. Have to be registered under FSA with coal companies by the state Govt. Agencies. Notified the agency. All other consumers may be issued LOA by CIL.

However. b) Coal Companies may be allowed to fix undisclosed reserve price not below the notified price. Coal India is perceived to be the synonym of Indian coal Industry. c) E-auction should be announced well in advance and be given wide publicity to all consumers who intend to participate. say one year. Coal Marketing was not much of problem in the past. a) Any buyer will be entitled to buy coal under auction.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. with the liberalization of the economy and easy availability of imported coal by many consumer. In case of industry due to the monopolistic market scenario. d) In order to address the concerns of such industrial consumers who wish to have an assured supply over a long period. It is used worldwide for generating power and is today one of the largest sources of power generation. CIL will earmark a fixed quantity which will be provided to highest bidder/bidders as per bidder’s requirement during the time of bidding. In long run. It plays the dominant role in the strengthening of the organization. SECTOR WISE DISPATCHES OF COAL AND ITS DIFFERENT BY-PRODUCTS DURING THE YEAR 2010-2011( in million tonnes) Sector Raw coal Clean Coal Washed Coal 39 Coal Powder Slurry Rejects . limited requirement of coal not warranting long term linkage etc. The observation about the global setting of the Coal sector is not fully reluctant in the Indian context. Is the prime commercial energy source in India? Contributing over 90% of the total energy reduced and consumed. CONSUMER OF COAL Coal is a fossil fuel. marketing is now playing a very important role in the entire operation activities of CIL/CCL. MARKETING POLICY Marketing is a very important branch of any organization. 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.

288 (in million ) OFFTAKE (Raw coal) Target tonnes) Actual(000 Rail 31249 22315 Road 6001 11709 Internal Coking 3960 3022 40 .THE TOTAL OFFTAKE DURING THE YEAR 2010-2011 WAS 46.Steel Power Cement Fertilizers Sponge Iron Others Total 358 21592 218 945 1448 3628 34.024 1398 1398 34 8026 8060 889 76 965 463 463 194 716 910 OFFTAKE:.

with a demand for exceeding the level of production of CIL.Internal non Coking 8780 9172 Colly Con Total 10 50000 10 46288 COMPETITIORS The post nationalization years saw an increasing coal demand which created monopoly in coal. the coal industry shall remain in the monopoly position for much as a decade. policy of liberalization shall be felt in its fullest strength. that the impact of govt. the private mines shall have positioned themselves in the open market. and its the subsidiary organizations. OBJECTIVES OF SCHEME To provide equal opportunity to all intending buyers for purchase of Coal/Coal products through single window service. grade/ size. 1. 41 .. mode for all type of customer including small customers/ traders. The managerial attitudes with ownership. It is expected that carrying on with things as they are today. There was little besides distribution of Coal that could be called True Marketing. Liberalization in our country is still in its initial phase. At present the coal industry is not under a major threat competition even with liberalization of different sectors. To provide wider choice of source. This is because. by this period. performance within the Coal industry had also declined. It is after this.

it has been proposed to from a separate subsidiary company “Coal Videsh”. With this objectives. cottage industrial sector or any other buyers in distress and also buyers purchasing Coal for re-sale purchases. CIL is also actively pursuing business intelligence activities by closely tracking the business opportunities in Australia. 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. To facilitate creation of large no. if any. of new industries. Since. Mozambique and Zimbabwe to explore strategic business opportunities in these countries.5 Mt/annum of coal from NEC. demand of coal is increasing at a faster rate. Buyer can get access to Coal at self-determined prices. 3. consisting of multi-disciplinary team has been opened in CIL. Coal India proposes to increase allocation of Coal under e-marketing. seasonal consumers such as brick manufactures. CIL and OIL held a meeting to discuss future possibilities on July 11. To evolve a market-driven Coal pricing mechanism through inter play of market forces demand and supply by shifting away from administrative price regime. 4. CIL Board has approved the proposal which needs approval of Govt.2. Indonesia and Russia. customer requiring Coal above their specified permissible quantities. a dedicated “Coal Videsh” dept.5 MTPA Coal from NEC. 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. Meanwhile. of outlets across the country for all customer s through customer friendly system of sale of Coal/ Coal products making use of modern technology. 2005 wherein OIL 42 . where such coal is available. To provide a legitimate channel of supply of Coal to an ever growing no. so that the market mechanization of price determination based on supply and demand is judiciously established. non-linked consumers with snapped/ lapsed linkages. it is felt necessary that CIL should venture for coal mining abroad. to facilitate bridging the gap.CMPDIL has prepared a report on possibilities of producing 3. COAL VIDESH In India. SSI & tiny industries. The team has started visiting South Africa.

The gas is used for power generation. It has decided to form a “Joint Task Force” of CIL which would study the CMPDI report for possibility of Coal production of 3. Further drilling for additional data generation is one of the prospective which is been taken up. CIL and ONGC are likely to take up jointly a pilot project for establishing UGC technology. Coal India has given high priority to the issue of UCG.5 MT p. It is achieved by injecting oxidants. Initial work of data exchange. 2005. A draft memorandum of corporation (MOC) has been drafted. 1 for Coal production and other for setting up of Coal liquefaction plant and its upstream activities (IOCL may be considered as a party for the letter). industrial heating or as chemical feedback. needed for identification of trial site. gasifying the coal and bringing the product gas to surface through boreholes grill from the surface. 2005 in connection with their interest to make a JV with CIL for evaluation of work in various Coal sector related potential opportunities. Over ground Coal Gasification (OCG) Director (Planning and business development). Switchover – Categorization of Coal from UHF to GCV 43 . Underground Coal Gasification (UGC) UGC is the in-situ gasification of Coal in the seam. examine possibility of formation of 2 Joint Ventures. On 20TH July. from NEC and examine enhancement of schedule of production . May director (Technical) Coal India Ltd. In this connection. CIL and GAIL have taken up drawing of a road map to accomplish the objective jointly in right earnest. MOC includes the scope of work for this JV in the field of over ground Coal Gasification. has already been taken up. with both NLC & NTPC for power plant in Orissa. and finally suggest a road map for implementation of proposed JV’s. Power Plant CIL is also contemplating setting up of power plants in JV. A MOU has been signed between CIL & ONGC ON 3rd Nov. CIL is in negotiation.indicated that the tentative cost of production of oil obtained from this process is US $ 35 per barrel which appears to be quite attractive particularly in view of the burgeoning oil price in international market which has reached up to US $ 65 per barrel. GAIL (India) Ltd.a.

Similar rollout of from Subsidiary HQ’s to area offices. Subsidiary HQ’s and Mock for voice. Initiative has been communication. CIL has been and MCL) for implementation of Coal Net application Software. Application S/w an integrated solution.Efforts are being made to assess the possibility of making the categorization of Coal from UHF basis to GCV basis. projects. Considering significant role of telecommunication and IT in providing a proper decision support system at area level. to bring uniformity across its subsidiary companies and entrusted the activities to IIT. data and video conferencing in an integrated manner for seamless flow of information over the network. Necessary LAN has been set up at respective subsidiary (HQ’s) for COAL NET s/w. The application s/w has been developed and implemented at CIL and its subsidiary (HQ’s). Necessary infrastructure preparation has been carried by respective subsidiary and implementation is in progress. COAL NET Coal India had taken initiative in development and implementation of COAL NET. Trials are being conducted at MCL & NCL results of which are yet to be obtained. The same is being upgraded for faster access of application data. 44 . Coal loading points etc. Kharagpur in the year 2001. Telecommunication links have been set up over satellite media (VSAT systems) and leased lines of BSNL interconnecting CIL HQ’s. regional stores.

ANALYSIS & INTERPRETATION 45 .CHAPTER 5 DATA PRESENTATION.

RESPONSE A NO OF RESPONDENT 30 PERCENTAGE OF RESPONDENT 50 Rail B C TOTAL Road Water 15 5 60 25 8.3 100 46 .1.DATA ANALYSIS Q.2.What according to you should be the most preferred way of the sales of coal.3% and 16. SL. Which method according to you is the most preferred way of Transportation. SL.3 100 Credit sales Cash sales From this graph we concluded that most preferred the way of sales of coal through credit sales 33.NO. RESPONSE A B TOTAL NO OF RESPONDENT 40 20 60 PERCENTAGE OF RESPONDENT 66.6 33.6% through cash sales. Q.NO.

4.As per this graph 50% of respondents prefer Rail for transport of coal and 25% preferred Road and and 8.3.Which method according to you is the most preferred way of extracting method of coal by CCL.3% preferred through Water . Q. Do you think that price of should be decrease according to need of coal? 47 .6% through Opencast Method. Q.NO. RESPONSE A B C TOTAL Shaft Method Incline Method Opencast Method NO OF RESPONDENT 30 15 15 60 PERCENTAGE OF RESPONDENT 50 25 25 100 From this graph we conclude that 50% of respondents preferred Shaft Method and 25% Incline Method of and 16. SL.

5. OF RESPONDENT 15 30 15 60 PERCENTAGE OF RESPONDENT 25 50 25 100 TOTAL 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.3 25 8.NO.NO.What types of coal did you prefer? SL.3 100 48 . RESPONSE A B C D TOTAL Coking coal Semi Coking Coal Non Coking Coal Others 60 NO OF RESPONDENT 35 15 5 5 PERCENTAGE OF RESPONDENT 58. RESPONSE A B C YES NO CAN’T SAY NO.3 8.SL.

6 100 As per this graph we conclude that 41.3% Non Coking Coal and others.C.L.NO.6.6 16. Are you satisfied with the Policy formulation and advisory functions by the CCL.6% of respondents are not satisfied with the price of Coal by CCL and 25% are satisfied and 16. RESPONSE A B C D TOTAL Fully satisfied Satisfied Not satisfied Can’t say NO OF RESPONDENT 25 15 10 10 60 PERCENTAGE OF RESPONDENT 41.6 25 16. 49 . Q.6% are fully satisfied or can’t say.From this graph we conclude that 58. Are you satisfied with the price of Coal by C. SL.3% of respondent prefer Coking Coal and 25% Semi Coking Coal and 8. Q.7.

6 50 8.NO.3 33.Do you realize that your competitors probably answered NO to even more questions than SL.3% are can’t say.3 8.SL. OF RESPONDENT 25 30 5 60 PERCENTAGE OF RESPONDENT 41.3 100 50 . Q.NO. OF RESPONDENT 35 20 5 60 PERCENTAGE OF RESPONDENT 58.3% are not satisfied and 8. RESPONSE A B C TOTAL Yes No Can’t Say NO. RESPONSE A B C TOTAL you did.3 100 From this graph we conclude that 58.8.3% of respondents are satisfied with Policy formulation and Advisory of company and 33. Yes No Can’t Say NO.

RESPONSE A B TOTAL Yes No NO.6 33.6% of the respondent says that yes and 50% says no and 8.3%says can’t say.NO. SL.3 100 Q. 51 .From this graph we conclude that 41.3% are disagree.9. OF RESPONDENT 40 20 60 PERCENTAGE OF RESPONDENT 66.6% respondents agree with policy for new customer and 33.Are you satisfied with Policy for new consumers? As per this graph we conclude that 66.

OF RESPONDENT 40 20 60 PERCENTAGE OF RESPONDENT 66.6% respondents satisfied with Reorganization & reconstruction of coal mines and 33.Q.Are you satisfied with Reorganization and reconstruction of Coal mines taken over by SL.10. 52 . Yes No NO.3 100 As per this graph we conclude that 66.NO.3% are disagree. RESPONSE A B TOTAL Government.6 33.

Fertilizer.power sectoer.CHAPTER 6 FINDING & CONCLUSION FINDINGS a) Consumers are classified into two types – New customer and Existing customer.railways will be met in full at notified price. 53 . b) Requirements of defence sector.IPP.

d) Distribution of coal is done by railway and roadway from CCL. The price of Coal would be on the basis of coal import parity prising with suitable adjustment for quality. i) The letter of Assurance (LOA) to be issued now pursuant to the new policy will have a validity of 24 months for consumers/applicants of power utilities. f) The percentage availability of coking coal is 42%. That’s why it’s price is more than other grade of coal.c) Other FSA consumers get 75% of the quantity as per the normative requirement of the consumers’ actual supply of coal requirement and rest of the 25% will be sourced by them through e-auction/import of coal etc. h) Grade A coal’s quality is the best among them. j) Supply of coal to steal plant would be based on FSA. CONCLUSION 54 . The system is already vogue. e) Non coking coal is more available in according to given data. g) The percentage availability of non-coking coal is 58%.

If it is the under the private sector then he create monopoly in country.25 lakh employees and their needing facility. As I want to say something about the price release for the coal to the buyers. The profit is also good but profit not shown of maximum. 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. BIBLIOGRAPHY & REFERENCE 55 . company gave time to receive the coal within 45 days. of India.Coal India is the third large coal producing Country. Per tonne price is very cheap and the buyers release the products at maximum price. It also contributes in shaping the country by paying tax. It gives opportunity to 4. The Company also takes positives decision that is not involves in service to the buyers like transport. material handling Logistics supply chain etc. The coal distribution policy is very effective and auction is very interesting for the buyers.

google.in III. Departmental reports & Data 56 .By Philip Kotler. Websites:I.coalindia. Marketing Management.ccl.nic.Books:I. www. www.in II.com Reports:I.nic. www.

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