Ann Rep 0506

CHAPTER I
THE YEAR 2005-06 AT A GLANCE

PREAMBLE 1.1. The Ministry of Coal was headed by Honble Prime Minister until Shri Shibu Soren was appointed as Cabinet Minister in charge on 29.01.2006. Dr. Dasari Narayana Rao is the Minister of State in the Ministry of Coal. 1.2. The Ministry of Coal has the overall responsibility of determining policies and strategies in respect of exploration and development of coal and lignite reserves, sanctioning of important projects of high value and for deciding all related issues. These key functions are exercised through its public sector undertakings, namely, Coal India Limited(CIL) and Neyveli Lignite Corporation(NLC) Limited and Singareni Collieries Company Limited(SCCL), which is a joint sector undertaking of Government of Andhra Pradesh and Government of India with equity capital in the ratio of 51:49 1.3. The coal reserves of India up to the depth of 1200m, have been estimated by the Geological Survey of India at 253.30 billion tonnes as on 1.1.2006. 1.4. Currently, lignite reserves in the country have been estimated at around 36009 million tonnes, most of which, occur in Tamilnadu. Other states where lignite deposits have been located are Rajasthan, Gujarat, Kerala, Jammu and Kashmir and Union Territory of Pondicherry COAL PRODUCTION 1.5. Coal production achieved in the country (excluding Meghlaya) during the year 2005-06 (April-December, 05) has been 282.424 million tonnes (provisional) as compared to the production of 267.177 million tonnes achieved during same period of the previous year i.e. 2004-05 showing a growth of 5.71%. Company-wise details are given below: (In million tonnes)
Company Target 2005-06 (April-December) 244.418 25.498 15.660 285.576 Actual Production * (2005-06) (April-December) 241.721 24.537 16.166 282.424 Actual Production (2004-05) (April-December) 228.541 25.085 13.551 267.177
CIL SCCL OTHERS TOTAL
Provisional (figures excluding Meghalaya)

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Ministry of Coal-Annual Report: 2005-06
1.6 About 86% of the total coal production in the country comes from the collieries of Coal India Ltd. CIL is also the biggest supplier of coal in the country. DEMAND AND SUPPLY 1.7 During the year 2005-06(April-December,05), CIL and SCCL supplied the following quantities of coal to various consumers: COAL INDIA LTD. (Million Tonnes) (Provisional) Sector Power Target Offtake Actual Offtake 186.253 189.86 (1.385) (1.25) Steel 8.867 8.10 Loco 0.02 0.00 Cement 7.261 7.39 Fertilizer 1.873 1.98 Others 45.407 37.17 Colly.Cons. 0.825 0.73 Total 250.506 245.23 (figures in bracket indicate middlings) SINGARENI COLLIERIES COMPANY LTD. (Million Tonnes) (Provisional) Sector Power Loco Cement Fertilizer Others Colly.Cons. Total Target Offtake 17.79 0.00 3.90 0.00 3.70 0.09 25.48 Actual Offtake 17.22 0.00 3.81 0.00 3.20 0.09 24.32 Supply % against Target 96.8 0.0 97.7 0.0 86.5 100.0 95.4 Supply % against Target 101.3 (90.3) 91.3 0.0 101.8 105.7 81.9 88.5 97.9 & Others
NEYVELI LIGNITE CORPORATION 1.8. The table below indicates the major products of Neyveli Lignite Corporation and their respective targets for the year 2005-06 and actual performance up to the end of December 2005.
Product Lignite Power Generation LT MU Target for 2005-2006 204.00 15705 2 Achievement April to December 2005 151.01 12396.68
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EXPERT COMMITTEE 1.9.(a) An Expert Committee has been constituted for comprehensive review of Coal sector and make recommendations for improving productivity and technological upgradation in the industry. The composition of the Committee is as under: i) ii) iii) iv) v) vi) Shri T.L. Shankar, IAS(Retd)- Chairman of the Committee. Dr. J.J. Irani, Director, TATA Shri P.K. Sen Gupta- former CMD, Coal India Ltd. Shri P.V. Sridharan, Sr. Visiting Fellow, TERI. Shri S.K. Mahajan, former Adviser (Coal & Mines), Planning Commission. Shri S.P .Sethi, Adviser(Energy), Planning Commission.
vii) Shri Pradeep Kumar, Additional Secretary- Member-Secretary of the Committee. (b) The items of reference of the Committee are as follows: i) ii) iii) iv) v) vi) Measures for meeting the demand - supply gap in Coal in the short, medium and long - term. How to improve productivity of man and machinery in Indian Coal Sector, particularly in Coal India Introduction of cutting edge technology in Coal Sector. How to convert CMPDIL into a Center of Excellence for Planning and Research in Coal Sector Restructuring of CIL to make it a World class Company Other matters that the Committee may consider important for the general improvement in the functioning of the Coal Sector.
vii) Examining the merits of opening up trading in coal. viii) Examining the current policy of providing captive coal mining, and considering recommendations which might reduce the demand - supply gap. (c) The Expert Committee is also to examine major recommendations suggested by M/s KPMG Consulting Private Limited. (d) The Committee has submitted Part-I of the report and is presently working on final report. ______________________
PRICE OF COAL 1.10. Prior to 01.01.2000 the Central Government was empowered under section 4 of the Colliery Control Order, 1945 to fix the grade-wise and colliery-wise prices of coal. 1.11. Following the recommendations of the Bureau of Industrial Costs and Prices (BICP), a decision was taken by the Government to deregulate the prices of all grades of coking coal and A, B, & C grades of non-coking coal and this decision was implemented with effect from 22.03.1996. Subsequently in consideration of a recommendation of the Committee on Integrated Coal Policy, the Government decided to de-regulate the prices of soft coke, hard coke and D grade of non-coking coal and this decision was implemented with effect from 12.03.1997. 1.12. The Government also decided to allow CIL and SCCL to fix prices of E, F and G grades of non-coking coal once in every six months by updating the cost indices as per the escalation formula contained in the 1987 report of the BICP and necessary instructions to this effect were issued to CIL and SCCL on 13.03.1997. 1.13. The pricing of coal stands fully deregulated after the Colliery Control Order, 2000 was notified with effect from 1st January 2000 in supersession of the Colliery Control Order, 1945. E-MARKETING OF COAL BY CIL 1.14. Trial e-marketing has been introduced in order to bring about transparency in the system of sale of coal. By this initiative, it is also envisaged that black marketing of coal, which is a frequent complaint, will stop and premium now being cornered by unscrupulous traders and bogus industries will accrue instead to Coal Companies enhancing their profitability/viability. Further, genuine non-linked consumers who have no official source of coal supply and have to access the black market, will now have an official channel of supply. 1.15. The Government approved the sale of 10 Million Tonnes of coal by Coal India Limited through e-marketing on trial basis during 2005-06 providing for review of the scheme at the end of the year. CIL has accordingly held e-marketing in all of its eight subsidiaries. Based on the experience gained in the process another ten million tones of coal has been released so as to build up market confidence and lower the prices further. ______________________
EMERGENCY COAL PRODUCTION PLAN 1.16. To meet the burgeoning coal demand during XI Plan, Coal India Limited (CIL) has enhanced its coal production target of 2011-12 to a level of 504.10 Mt which is about 141 Mt. more than the projection of 2006-07 and about 59 Mt more than earlier projections for XI Plan. Besides this, CIL under Emergency Coal Production Plan has identified 16 opencast projects/mines where production from the existing mines/projects will be enhanced to a higher level yielding additional 71.3 Mt. after attaining full production potential in 8 year period. This incremental contribution from CIL would enable the coal sector to by and large meet the projected demand of steam coal. These proposals are under active consideration of the Govt. In view of limited reserves of coking coal, gap between demand and supply of coking coal will have to be imported. IMPROVED PERFORMANCE OF BCCL & ECL 1.17. BCCLs focus on revamping of departmental capacity combined with efforts to deploy hired HEMM in isolated patches has started yielding results with 9.1% growth in raw coal production during December, 2005 and 12.5% increase in OB removal in April-December, 2005 over the same period last year. BCCL has earned a profit of Rs.1.51 crore, Rs.38.58 crore and Rs.40.59 crore in October, November and December, 2005 respectively. At this rate BCCL is poised to post a profit in 20052006 for the first time since its inception. 1.18. Steps taken by ECL have resulted in 9.5% growth in Coal production and 10.69% increase in overburden removal during April to December, 2005 over the same period last year. Till December, 2005 Company made a provisional profit of Rs.43.06 crores against the loss of Rs.242.06 crores incurred during the same period last year.
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CHAPTER II
ORGANISATION
FUNCTIONS OF MINISTRY OF COAL 2.1. The Ministry of Coal is responsible for development and exploitation of Coal and Lignite reserves in India. The subjects allocated to the Ministry under the Government of India (Allocation of Business) Rules, 1961, as amended from time to time are as follows: i) ii) iii) iv) v) vi) vii) viii) ix) x) Exploration and development of coking and non-coking coal and lignite deposits in India. All matters relating to production, supply, distribution and prices of coal. Development and operation of coal washeries other than those for which the Ministry of Steel is responsible. Low Temperature carbonisation of coal and production of synthetic oil from coal. Administration of the Coal Mines (Conservation and Development) Act, 1974 (28 of 1974). The Coal Mines Provident Fund Organisation. The Coal Mines Welfare Organisation. Administration of the Coal Mines Provident Fund and Miscellaneous Provision Act, 1948 (46 of 1948). Administration of the Coal Mines Labour Welfare Fund Act, 1947 (32 of 1947). Rules under the Mines Act, 1952 (32 of 1952) for the levy and collection of duty of excise on coke and coal produced and despatched from mines and administration of rescue fund. Administration of the Coal Bearing Areas (Acquisition and Development) Act, 1957 (20 of 1957). Administration of the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957) and other Union Laws in so far the said Act and Laws relate to coal and lignite and sand for stowing, business incidental to such administration including questions concerning various States.
xi) xii)
2.2. At the Secretariat level, the Ministry is headed by a Secretary who is assisted by one Additional Secretary, three Joint Secretaries (including the Financial Adviser), one Project Advisor, eight Director/Deputy Secretaries, nine Under Secretaries, eighteen Section Officers, one Assistant Director (Official Language) and one Deputy Controller of Accounts, and their supporting staff.
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PUBLIC SECTOR COMPANIES 2.3. The Ministry of Coal has under its administrative control, Coal India Limited (CIL), a Public Sector Undertaking with its eight (8) subsidiary companies namely:1. 2. 3. 4. 5. 6. 7. Bharat Coking Coal Limited (BCCL) Central Coalfields Limited (CCL) Eastern Coalfields Limited (ECL) Western Coalfields Limited (WCL) South Eastern Coalfields Limited (SECL) Northern Coalfields Limited (NCL) Mahanadi Coalfields Limited (MCL) 8. Central Mine Planning and Design Institute Limited (CMPDIL)
2.4. Coal India Limited with its headquarters at Kolkata, is the apex body in the Coal Industry and is responsible for laying down policy guidelines and coordination work of subsidiaries. It does the investment planning, manpower management, financial budgeting etc. on behalf of all its subsidiaries (Details about the subsidiaries are mentioned in Chapter-III). 2.5. The Ministry of Coal has under its administrative control the Neyveli Lignite Corporation Limited (NLC), with registered office at Chennai and corporate office at Neyveli in Tamil Nadu. The company is engaged in exploitation and excavation of lignite, generation of thermal power and also sale of raw lignite. ORGANISATIONS UNDER THE ADMINISTRATIVE CONTROL OF MINISTRY OF COAL 2.6. The following subordinate offices and autonomous organizations are under the administrative control of this Ministry:i) ii) iii) Office of the Coal Controllers Organization - a subordinate office. Office of the Commissioner of Payments - a subordinate office. Coal Mines Provident Fund Organization - an autonomous organization.
COAL CONTROLLERs ORGANIZATION (C.C.O) 2.7. The Coal Controller's Organisation is a subordinate office of Ministry of Coal, having its headquarters at Kolkata and field offices at Dhanbad, Ranchi, Bilaspur, Nagpur and Kothagudem.
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2.8. The Coal Controller discharges various statutory functions derived from the following statutes :i) ii) iii) iv) The Colliery Control Order, 2000 and Colliery Control Rules, 2004. The Coal Mines (Conservation and Development) Act, 1974 and The Coal Mines (Conservation and Development) Rules, 1975. The Collection of Statistics Act, 1953 (32 of 1953) and Collection of Statistics (Central) Rules, 1959. The Coal Bearing Areas (Acquisition & Development) Act, 1957 (20 of 1957).
2.9. Apart from the above, the Coal Controller has also been assigned some functions under the Mines and Minerals (Development & Regulations) Act, 1957. 2.10. In addition to above statutory functions, the Coal Controller has also been assigned to attend the following duties:i) ii) iii) To look after the residual work of the erstwhile Coal Board. To attend to legal matters/Court cases arising out of various statutes administered by the Coal Controller. To attend the other specific jobs as assigned by the Ministry of Coal from time to time.
2.11. The Coal Controller's Organisation performed the following main functions during the period from April 2005 to December 2005: (A) Grant of permission for opening and reopening of seams /mines
2.12. Under Clause 9 of Colliery Control Order, 2000, the Coal Controller granted permission for opening and re-opening of 13 seams/mines during the period April, 2005 to December, 2005. (B) Collection and utilisation of excise duty under the Coal Mines (Conservation & Development) Act, 1974
2.13. Under the guidance of the Coal Conservation and Development Advisory Committee (CCDAC), the Office of the Coal Controller carries out assessment of actual expenditure incurred by the coal mines for sand stowing, protective works and also makes necessary recommendations to the Union Government for grant of assistance for stowing and protective works as provided under the Coal Mines (Conservation & Development) Act, 1974. Subsidy is also provided for road and rail infrastructure development, research and development work in the coal companies, related to coal conservation, better utilization of coal etc. The Coal Conservation and ______________________
Development Advisory Committee also considers funding of studies on implementation of different surface protection measures in the coal mining areas. It has also been decided to expand the ambit of funding under CCDA to include Action Plan to deal with fire and subsidence in ECL & BCCL command areas. 2.14. During the period April, 2005 to December, 2005, the CCDA Committee met once on 06.06.2005 in the Office of the Coal Controller for approval of new application and recommended the claims of the ongoing schemes for reimbursement towards stowing, protective works and construction of roads & rail infrastructure pertaining to the period October 2004 to March, 2005. CCDA Fund is usually released in phases during each financial year to reimburse the claims recommended by the Committee covering the period of last half year of previous year and first half year of current year. Sometimes the fund available in a year becomes inadequate to meet the actual yearly claim. In such cases, the balance claim is taken up as spill over to the next financial year.
2.15. The Budget Estimates for 2005-2006 for CCDA works BE 2005-06 Plan Rs. 0.01 Crore Rs. 0.01 Crore Rs. 0.02 Crore RE 2005-06 Non Plan Rs. 66.11 crore Rs. 50.00 crore Rs.116.11 crore
1. Stowing, Protective works and R&D 2. Development of Road & Rail.

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Total
2.16. The 58th meeting of the CCDA Committee held on 06.06.2005 in the Office of the Coal Controller, Kolkata recommended for reimbursement of various claims of Coal Companies for the period of October, 2004 to March, 2005. These claims including the spill over of 2004-05 would be settled against RE 2005-06, to the extent feasible, as detailed below: (Rs. in crore) Spill over of 1st half of 2005-06 2nd half of 2005- RE 2005-06 2004-05 (58th meeting) 06 (59th meeting)
Stowing, Protective work and R&D Development of Road & Rail Total 35.04 0.00 35.04 49.79 2.63 52.42 60.17 57.37 117.54 66.11 50.00 116.11
(C)
Collection of Excise Duty:
2.17. During April, 2005 to December, 2005 an amount of Rs. 276.70 Crore was collected against BE 2005-06 of Rs. 383.46 Crore. RE 2005-2006 is proposed at Rs.385.00 Crore. ______________________
(D)
Collection, Compilation and Publication of Coal Statistics:
2.18. Coal Controller being the Statistics Authority of Coal Statistics, the publication brought out by the Organisation is perhaps the lone authentic source of coal statistics in the country. The Organisation collects, compiles and analyses coal statistics periodically to cater to the need of various Government Departments, national and international bodies, research organisations etc. who require such data. A compendium entitled "Coal Directory of India" has been prepared after restructuring and remodelling of the earlier publication in order to present it as an integrated and exhaustive data bank. As the Coal Directory requires a longer time period for publication, "Provisional Coal Statistics" is also brought out by the organisation within a month of expiry of the financial year giving provisional statistics under some of the major parameters required by various organisations and departments. . 2.19. The Provisional Coal-Statistics 2004-05 was published in April, 2005 and the Coal Directory of India 2004-05 was published in November, 2005. Besides, monthly coal data is being supplied to the Ministry of Coal, Central Statistical Organisation, Indian Bureau of Mines, Inter-national Energy Agency etc. (E) Disposal of cases under section 8 of the Coal Bearing Areas (Acquisition & Development) Act, 1957.
2.20. On the notification to acquire the land under section 7 of the Coal Bearing Areas Act 1957, the Coal Controller is the competent authority to receive and hear any objection pertaining to the notification and send report under section 8 of the said Act to the Ministry of Coal. 2.21. During the period April 2005 to December 2005, reports in respect of 5 Notifications were sent to the Ministry of Coal. (F) Vigilance Report for the period from April, 2005 to December, 2005
2.22. The receipt and disposal of vigilance cases for the period April 2005 to December 2005 in respect of the Coal Controller's Organisation was 'NIL'. (G) Quality Surveillance Activities.
2.23. Under the Colliery Control Order, 2000, the Coal Controller is to monitor the quality of coal despatched from collieries and also to settle quality complaints of consumers. After the introduction of third party/ joint sampling, the requirement of such quality monitoring has come down considerably as the consumers are now required to pay in terms of the grades as analysed on the basis of third party or joint sampling results. Under such circumstances, the strength of the quality control cell ______________________
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available earlier in the office of the Coal Controller has been drastically pruned down from 133 to 30 in March 2001. A study to restructure the Coal Controllers Organisation including its field set up is under consideration in the Ministry of Coal. 2.24. There are five field offices in the Coal Controller's Organisation located at Dhanbad, Ranchi, Bilaspur, Nagpur and Kothagudem. The location of the field offices and their jurisdiction is as under: Field Offices Dhanbad Ranchi Bilaspur Nagpur Kothagudem Jurisdiction Collieries under ECL, BCCL, TISCO (Jharia), IISCO, BECML and ICML Collieries under CCL, NCL, TISCO (West Bokaro), JSMDCL and DVC Colleries under SECL, MCL, HIL, JSPL and Monnet Ispat Ltd. Collieries under WCL and BLA Industries. Collieries under SCCL
2.25. Each of the field offices is headed by one GM/Deputy GM level Executive working in the capacity of Officer on Special Duty. Apart from carrying out normal inspection for ascertaining quality in selected mines, the field officers also carry out inspections to ensure compliance with specific orders relating to coal quality and for resolving statutory complaints. Besides looking after the quality surveillance, the above field officers are also entrusted with the field assignments associated with CCDA assistance, opening and re-opening permission under the Colliery Control Order, 2000 and coordination with the Coal Companies. In addition, one Officer on Special Duty is posted in the Coal Controller's Office in Kolkata for coordinating the field offices and rendering assistance to Coal Controller on technical matters. (H) Monitoring progress in captive coal blocks allocated and its associated end use projects.
2.26. The Coal Controller has been entrusted with the task of monitoring the progress made by successful allocatees of captive coal blocks with respect to coal blocks as well as associated end use projects with a view to expediting the production of coal in synchronisation with the development of their respective end use project. 2.27. Out of 148 coal blocks identified for captive mining, 89 coal blocks have been allocated/decided for allocation. Further 4 lignite blocks, 1(one) under the government dispensation and 3(three) under the captive mining dispensation have also been allocated. Office of the Coal Controller has been collecting information about progress of different milestones from each captive block owner for facilitating the monitoring of development of captive coal blocks and associated end use projects. ______________________
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COMMISSIONER OF PAYMENTS (COP) 2.28. The Office of Commissioner of Payments was set up in pursuance of the Coking Coal Mines (Nationalisation) Act, 1972 and the Coal Mines (Nationalisation) Act, 1973 for the purpose of disbursement of amounts payable to owners of coal mines nationalised in 1972-73. Initially, there were two Offices of Commissioner of Payments, one for determining compensation etc. for nationalized coking coal mines and coke oven plants with headquarters at Dhanbad and the other for nationalised non-coking coal mines with headquarters at Kolkata. After the work of Dhanbad Office had been disposed of substantially, that Office was wound up and its residual works were transferred to the Office of the Commissioner of Payments, Kolkata. At present, the Coal Controller also functions as ex-officio Commissioner of Payments. 2.29. The details of the number of colliery accounts in the office of the COP in respect of which claims are yet to be settled and the amount of compensation money left for disbursement at the end of December, 2005 are as under:Particulars Coking Coal (Act of 1972) 226 Non-Coking Coal (Act of 1973) 711 576 135 Rs.7.04 Crores
1. Number of Collieries Nationalised 2. Number of Colliery accounts closed up 163 to 31.12.2005 3. Number of Colliery accounts not closed 63 up to 31.12.2005. 4. Amount of compensation money left for Rs.3.93 Crores disbursement as on 31.12.2005.
COAL MINES PROVIDENT FUND ORGANISATION (C.M.P.F.O.) 2.30. The Coal Mines Provident Fund Organization is an autonomous body established under the Coal Mines Provident Fund and Miscellaneous provisions Act, 1948 and is responsible for administering the Coal Mines Provident Fund Scheme, 1948, Coal Mines Deposit Linked Insurance Scheme, 1976, and Coal Mines Pension Scheme, 1998. These three Schemes are administered by a Tripartite Board of Trustees consisting of Government representatives, employers representatives and employees representatives. CMPF Organization has 23 Regional Offices and its headquarters is at Dhanbad (Jharkhand). The sanctioned establishment of the organization now consists of 46 officers and 1529 staff. Coal Mines Provident Fund Scheme. 2.31. In the beginning of the year 2005-2006 the total number of units covered stood at 971 excluding coke plants operating in private sector. During 2005-2006 (up to December, 2005), 2238 persons were enrolled as new members of the Fund, while ______________________
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the exit was 20497. The number of live subscribers to the Fund stood at 594677 at the end of December 2005. 2.32. During 2005-2006 (upto December, 2005) Provident Fund contributions including voluntary contributions amounting to Rs.1,800.00 crores (approximately) were received in the Coal Mines Provident Fund raising the total contributions received to Rs.20467.67 crore. The net accretion since the inception of the fund by way of contribution and interest thereon, less refund and advances upto December, 2005, amounted to Rs.19484.83 crore. The entire accumulation in the Fund is invested in accordance with the guidelines laid down by the Ministry of Finance. The total face value of the Funds investment upto December, 2005 stood at Rs.25,907.34 crore (approx). During 2005-2006 interest at the rate of 8% has been allowed on the accumulated contributions of members. 2.33. Refund from Provident Fund during 2005-2006 (upto December, 2005) together with the advances paid are indicated below:No. of claims Settled 20497 11134 856 12417 Rs.1707/- crores approx.
No. of claims settled under Provident Fund No. of Marriage Advance claims settled under Provident Fund No. of Education Advance claims settled under Provident Fund No. of House Building Advance claims settled under Provident Fund The amount disbursed on Provident Fund and others / claims
The cost of administration of CMPF Scheme is met out of the Administrative Charge paid @ of 3% by the Coal Companies. Coal Mines Deposit Linked Insurance Scheme 2.34. In the event of death of an employee in harness, who was a member of Coal Mines Provident Fund, his/her nominee is entitled to receive, in addition to the Provident Fund, an amount equal to the average balance, in the account of the deceased during the preceding 3 years, subject to a maximum of Rs.10,000/-. 2.35. In accordance with the Scheme, the employers are required to contribute at the rate of 0.5% of the aggregate wages of covered workers. The Central Government is also required to pay half of the amount contributed by the employers under the Scheme. During 2005-2006 (upto December, 2005), employers contributed a sum of Rs.1.58 crores approx. on this account. ______________________
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2.36. During 2005-2006 (upto December, 2005) an amount of Rs.50,000 was paid as Deposit Linked Insurance as benefit in the cases of 5 deceased employees. For meeting the cost of administration of this scheme, employers contribute @0.1 % of aggregate wages and the Central Government contributes 50% thereof i.e. 0.05% of aggregate wages. Coal Mines Pension Scheme, 1998 2.37. In exercise of the powers conferred by Section 3E of the Coal Mines Provident Fund and miscellaneous Provisions Act, 1948 (46 of 1948) and in supersession of the Coal Mines Family Pension Scheme, 1971, except as respects things done or omitted to be done before such supersession, the Central Government has framed the Coal Mines Pension Scheme, 1998. 2.38. The Coal Mines Pension Scheme has come into force with effect from the 31st day of March, 1998 and as on March, 2005 its membership consists of 7,21,313 coal workers, working in different coal mines within the country. The highlights of the Scheme are:I. Corpus of the Fund and its sustainability:The Pension Fund consists of the followings:a) Net assets of the Coal Mines Family Pension Scheme, 1971 as on the appointed day; b) An amount equivalent to two and one-third percent of the salary of the employee, being the aggregate of equal shares of the employee and the employer from their respective contributions to be transferred from the appointed day from the Fund of employee; c) An amount equivalent to two percent of the salary of the employee from the first day of April, 1989 or the date of joining, whichever is later, up to the 31st day of March, 1996 and two percent of the notional salary of the employee from the 1st day of April, 1996 or the date of joining, whichever is later, to be transferred from his salary; d) An amount equivalent to one increment to be calculated on the basis of the salary of the employee as on the first day of July, 1995 or the date of joining, whichever is later, to be transferred from the first day of July, 1995 or the date of joining, whichever is later, from the salary of the employee e) An amount equivalent to one and two-third percent of the salary of the employee to be contributed by the Central Government from the appointed day; provided that in the case of an employee whose salary ______________________
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exceeds rupees one thousand six hundred per month, the contribution payable by the Central Government shall be equal to the maximum of the amount payable on the salary of rupees one thousand six hundred per month only; f) Amounts to be deposited by new optees in terms of the provisions of the Scheme. 2.39. In 2005-2006 (up to December, 2005) Rs.250.00 crores (approx) were diverted to Pension Fund from Provident Fund. Net accretion in the pension as on 31.12.2005 (without Government Shares and interest) is Rs.291.82 crores approx. II. Coverage:(a) All employees who are members of the ceased Coal Mines Family Pension Scheme, 1971 and are on rolls on 31st March, 1998. (b) All such employees who are appointed on or after 31st March, 1998. (c) All such optee members who opted for membership of the Pension Fund in form PS-1 and PS-2 as the case may be with the condition specified under the Scheme. III. Benefits:(a) Monthly Pension. (b) Disablement Pension. (c) Monthly widow or widower pension. (d) Children Pension (e) Orphan Pension. (f) Exgratia Payment. 2.40. As per provisions of the Pension Scheme valuation of the Pension Fund will be done every third year by an Actuary to be appointed by the Board of Trustees. Coal Mines Pension Scheme, 1998 & Family Pension Scheme, 1971 2.41. The erstwhile Coal Mines Family Pension Scheme, 1971, since superseded by the Coal Mines Pension Scheme, 1998, covers all the eligible family pension members before the appointed date i.e 31.3.1998. The number of claims of Pension settled in 2005-2006 (up to October, 2005) is 20617. The total amount disbursed under the Coal Mines Pension Scheme, 1998 & Family Pension Scheme, 1971 is Rs.810.00 crore approx. ----- x ----- x ----- x ----______________________
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CHAPTER III
COAL COMPANIES AND NEW MINING POLICY
3.1. The Coking Coal Mines (Emergency Provisions) Ordinance was promulgated by the Government of India on 16.10.1971 under which except the captive mines of TISCO and IISCO, the management of all coking coal mines was taken over by the Government. A new company called the Bharat Coking Coal Limited was formed as a subsidiary company of the Steel Authority of India Limited to manage the taken over mines. These mines were subsequently nationalised w.e.f. 01.05.1972. Later on, the management of 711 coal mines was also taken over by the Government with effect from 31.01.1973 and they were nationalised w.e.f. 01.05.1973 and a new Government Company namely, the Coal Mines Authority Limited (CMAL) with headquarters in Calcutta, was set up by the Government in May, 1973 to manage the non-coking coal mines. CMAL was organised as a unitary structure on divisional pattern with four Divisions, the Central Division, the Eastern Division, the Western Division and the CMPDIL. The mines of erstwhile National Coal Development Corporation were brought under the Central Division of CMAL. In September, 1975, CIL was formed as a Holding Company with five subsidiaries, namely, Bharat Coking Coal Limited (BCCL), Central Coalfields Limited (CCL), Eastern Coalfields Limited (ECL), Western Coalfields Limited (WCL) and Central Mine Planning and Design Institute Limited (CMPDIL). 3.2. In view of the projected increase in production and investment contemplated for CCL and WCL group of coal mines and in view of their extensive geographical spread resulting in day to day administrative, technical and communication problems etc. two more coal companies, namely, Northern Coalfields Limited and South Eastern Coalfields Limited were formed w.e.f. 28.11.1985. 3.3. Considering the prospects of Orissa Coalfields, being the growth centre for the VIII and IX Plan periods, a new coal company was formed bifurcating South Eastern Coalfields Limited (SECL). The new company, the Mahanadi Coalfields Limited was incorporated on 3rd April, 1992 with its headquarters at Sambalpur ( Orissa ) as fully owned subsidiary of Coal India Limited to manage the Talcher and IB-Valley Coalfields in Orissa. 3.4. Coal India Ltd.(CIL) as holding company has eight subsidiaries viz. Bharat Coking Coal Limited (BCCL), Central Coalfields Limited (CCL), Eastern Coalfields Limited (ECL), Western Coalfields Limited (WCL), South Eastern Coalfields Limited (SECL), Northern Coalfields Limited (NCL), Mahanadi Coalfields Limited (MCL) and Central Mine Planning and Design Institute Limited (CMPDIL). CMPDIL is an engineering, design and exploration company set up for preparing 16 ______________________
perspective plan(s), rendering consultancy services and undertaking exploration and drilling work to establish coal reserves in the country and collection of detailed data for preparation of projects for actual mining. The other seven subsidiaries of CIL are coal producing companies. 3.5. CIL and its subsidiaries are incorporated under the Companies Act, 1956 and are wholly owned by the Central Government. The coal mines in Assam and its neighbouring areas are controlled directly by CIL under the unit North Eastern Coalfields. 3.6. In addition to CIL and its subsidiaries, there is another coal company in Public Sector, namely, the Singareni Collieries Company Limited (SCCL), which is a joint venture between the Government of Andhra Pradesh and Government of India, with equity capital shared in the ratio of 51:49 respectively. COAL INDIA LIMITED AND ITS SUBSIDIARIES 3.7. CIL, the holding Company with headquarters in Kolkata, is headed by a Chairman-cum-Managing Director in schedule 'A' scale of pay. He is assisted by four Functional Directors, namely, Director (Technical), Director (Personnel & Industrial Relations), Director (Finance) and Director (Marketing), who are all in Schedule 'B' scale of pay. Each Subsidiary Company has its own Board of Directors headed by a Chairman-cum-Managing Director in schedule 'B' scale of pay. In addition, there are four functional Directors ( in schedule 'C' scale of pay ) in each of the six production companies of BCCL, ECL, CCL, NCL, SECL and WCL viz. Director(Personnel), Director(Finance), Director(Planning and Projects) and Director (Technical). In MCL there are at present three posts of functional Directors, namely, Director (Technical), Director (Personnel) and Director (Finance). CMPDIL also has four functional Directors on its Board of Directors, who are designated as Director (Technical), Director (Coal Production & Utilisation), Director (Planning & Design) and Director (Research, Development & Technology). In addition, there are several part-time or nominee Directors on the Board of CIL and its subsidiaries, who are appointed in accordance with the Articles of Association of the Company and Government guidelines prescribed in this behalf from time to time. The authorised share capital of CIL as on 31.03.2005 was Rs.8,904.18 crore divided into90,41,800 Non-cumulative 10% redeemable preference shares of Rs. 1000/- each 8,00,00,000 Equity Shares of Rs. 1000/- each Total
Rs. 904.18 Rs.8,000.00
crore crore
Rs.8,904.18 crore
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3.8 The authorised share capital of the subsidiary companies of CIL as on 31.3.2005 is given below:Subsidiary Company Bharat Coking Coal Limited Western Coalfields Limited Central Coalfields Limited Eastern Coalfields Limited Northern Coalfields Limited South Eastern Coalfields Limited Mahanadi Coalfields Limited Central Mine Planning & Design Institute Limited Authorised Share Capital (Rs in crore) 2,500.00 800.00 1,100.00 2,500.00 1,400.00 1,300.00 500.00 50.00
3.9. CIL is mainly responsible for laying down corporate objectives, approving and monitoring performance of subsidiary companies in the fields of long-term planning, conservation, research and development, production, sales, finances, recruitment, training, safety, industrial relations, wages, material for all operational matters, commissioning and execution of new as well as on-going projects, man management, production, consumer satisfaction etc. In addition, subsidiary companies perform related functions, such as maintaining liaison with concerned State Governments, acquisition of land, execution of welfare programmes, maintenance of safety standards, improvement of industrial relation etc. 3.10. In addition to the above functions, CIL has directly under its control the development and exploitation of the coal mines in the North-Eastern States, and the coal marketing network spread throughout the country. WORKING RESULTS OF COAL INDIA LTD. 3.11. CIL and its subsidiaries have achieved collectively a pre-tax profit of Rs. 4,801.52 crore in the year 2004-05 against a pre-tax profit of Rs 4,889.16 crore in the year 2003-2004 and provisional profit upto December 2005 is Rs.5157.32 crore. Company-wise position with regard to profit (+) earned or loss (-) incurred during the year under review vis-a-vis in 2004-05 and upto December 2005 (Prov.) are given in table below:-
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Company ECL BCCL CCL NCL WCL SECL MCL CMPDIL CIL/NEC Sub-total Less : Dividend from subsidiaries TOTAL CIL
2003-2004 (-) 326.38 (-) 569.85 (+) 370.38 (+) 1647.06 (+) 743.60 (+) 1314.22 (+) 1418.60 (+) 1.76 (+) 1355.97 (+) 5955.36 (-) 1066.20 (+) 4889.16
2004-2005 (-) 679.20 (-) 959.43 (+) 437.81 (+)1976.03 (+) 935.30 (+) 1580.93 (+) 1469.36 (+) 1.73 (+) 1328.30 (+) 6090.83 (-) 1289.31 (+) 4801.52
Rs. In crore Prog December 05 (Prov) (+) 43.06 (+) 1.50 (+) 621.90 (+)1574.47 (+) 641.89 (+) 926.68 (+) 1215.11 (-) 0.83 (+) 99.19 (+) 5122.99
(+) 5122.99
Note : Profit for 2004-05 is after making a provision of Rs.2449.64 crore, being the impact of arrear wages arising out of NCWA-VII. However, profit of SECL in 200405 is before consideration of arrear of NCWA-VII to the tune of Rs. 388.95 crore, which has been considered in 2005-06. 3.12. Dividend income of CIL accounted for during the year under review, based on the recommendations from four profit making subsidiaries namely NCL, WCL, MCL and SECL was Rs.566.94 crore being interim dividend for the year 2004-05 and final dividend of Rs.722.37 crore for the previous year 2003-04. The subsidiary-wise break-up is as under: Name of the subsidiary NCL WCL MCL SECL Total Dividend Received by CIL (Rs. Crore) 426.76 (361.74) 186.57 (138.23) 246.75 (329.18) 429.23 (237.05) 1,289.31 (1,066.20)
Figures in parenthesis indicate earlier year figure.

CENTRAL MINE PLANNING AND DESIGN INSTITUTE LIMITED (CMPDIL)
3.13. Central Mine Planning and Design Institute Limited, a subsidiary of Coal India Limited is engaged in the work of exploration, project planning, detailed designing of system and sub-systems, co-ordination and integration of applied research and development, absorption of new techniques of coal mining, beneficiation and utilisation of coal, perspective planning and demand assessment, 19 ______________________
environment related services and caters to the total planning and designing needs of new coal projects and re-organisation of existing mines for optimal production of coal. The company has its headquarters located at Ranchi and has 7 Regional Institutes located at Asansol, Dhanbad, Ranchi, Nagpur, Bilaspur, Singrauli and Bhubaneshwar to render doorstep service to the coal producing companies located in these areas. In addition, to satisfy the planning and design requirements of CIL and its subsidiary companies, CMPDIL is also offering consultancy services to outside organizations. CONSULTANCY SERVICE OUTSIDE CIL (WITHIN INDIA). 3.14. During the year 2004-2005, consultancy services were provided to 21 organisations for 26 jobs by CMPDIL. Some of the important client/organizations to whom services were provided were Uranium Corporation of India Ltd., Jharkhand State Mineral Development Corporation, National Aluminum Company Ltd., Manganese Ore (India) Ltd. CEA, BSNL, NABARD, Indian School of Mines, SAIL, Damodar Valley Corporation etc. 3.15. During the same period, 30 jobs worth Rs. 564.08 lakh from 23 organisations were procured by CMPDIL. BHARAT COKING COAL LIMITED (BCCL) 3.16. Bharat Coking Coal Limited is one of the consistently loss-making subsidiary company of Coal India Limited. The losses incurred by the company during the last three years i.e. 2002-03, 2003-04 and 2004-05 were Rs. 507.13 crore, and Rs. 569.85 crore and Rs. 959.43 crore respectively. The paid up capital of the company as on 31.03.2005 is Rs. 2,118.00 crore. The company has accumulated losses of Rs. 7,044.02 crore as on 31.03.2005. The company has earned a profit of Rs.1.66 crore (provisional) upto December 2005 during the current financial year. 3.17. The Company has its headquarters at Dhanbad in Jharkhand. It had under its charge nationalised coking coal mines and two mines, namely, Moonidih and Sudamdih transferred to it from the erstwhile National Coal Development Corporation Ltd. All these mines were re-organised into units/areas for administrative and operational convenience. BCCL is the major producer of prime coking coal (raw and washed). Medium coking coal is also produced in its mines in Mohuda and Barakar areas. In addition to production of hard coke, BCCL operates a number of sand gathering plants, a network of aerial ropeways for transport of sand and nine coal washeries, namely, Dugda, Mohuda, Bhojudih, Patherdih, Lodna, Sudamdih, Barora, Moonidih and Madhubhan. 3.18. BRPSE considered the revival proposal of BCCL in its 19th meeting on 29.08.2005. The Board noted that the revival plan envisages fresh infusion of funds 20 ______________________
to the tune of Rs. 2,014 crore and waiver/conversion/guarantee to the tune of about Rs. 3,926 crore from CIL. The Board advised the Ministry of Coal/BCCL to resubmit the revival proposal duly appraised by an independent consultant for its consideration and also to explore the feasibility of placing BCCL on management contract to other public/private sector enterprises having synergy with BCCL. BCCL/CIL were advised on 18.10.2005 to get the revival proposal appraised by an independent consultant, and give the views of BCCL management and the recognized Trade Unions on the proposal of placing BCCL on management contract to other public/private sector enterprises. Recommendations of the appraising agency are awaited. 3.19. BCCLs focus on revamping of departmental capacity combined with efforts to deploy hired HEMM in isolated patches has started yielding results with 9.1% growth in raw coal production during December, 2005 and 12.5% increase in OB removal in April-December, 2005 over the same period last year. BCCL has earned a profit of Rs.1.51 crore, Rs.38.58 crore and Rs.40.59 crore in October, November and December, 2005 respectively. At this rate BCCL is poised to post a profit in 20052006 for the first time since its inception. SOUTH EASTERN COALFIELDS LIMITED (SECL) 3.20. South Eastern Coalfields Ltd., with headquarters at Bilaspur (Chhattisgarh), was incorporated under the Companies Act, 1956 on 28.11.1985 but for accounting purposes, it started functioning independently from 01.04.1986. The Company covers Korba, Kusmunda, Gevra, Raigarh, Bhatgaon, Bisrampur, Baikunthpur, Chirimiri and Hasdeo (partially) areas in Chhattisgarh and Sohagpur, Jamuna-Kotma and Johilla areas in Madhya Pradesh. Despite separation of coalfields in Orissa from its jurisdiction, SECL continues to be one of the leading coal producers among the subsidiaries of CIL. The company posted a profit of Rs. 1,580.93 crore before tax during 2004-05 as compared to Rs. 1,314.22 crore in the previous year. The company has earned a profit of Rs.962.37 crores (provisional) upto December during current financial year. WESTERN COALFIELDS LIMITED (WCL) 3.21. Company has its headquarters at Nagpur (Maharashtra). The mining operations are organized into 10 areas, 7 located in the State of Maharashtra and 3 in Madhya Pradesh. WCL meets mainly the requirement of power houses, cement plants and other industries located in the Western Region of the country. 3.22. The company made a net profit of Rs. 935.30 crore before tax during the year 2004-05 as against Rs. 743.60 crore in the previous year. The company has earned a profit of Rs.651.51 crore (provisional) upto the month of December during the current financial year. 21 ______________________
EASTERN COALFIELDS LIMITED (ECL) 3.23. Eastern Coalfields Limited (ECL) inherited some of the oldest coalmines of the country after nationalisation. The coal reserves of ECL falling in West Bengal are in very deep seams with the result that the geo-mining conditions in such seams are extremely difficult. It has a large share of old underground mines. Because of difficult geo-mining conditions and surplus manpower, not only the cost of production is very high but also ECL's productivity measured in terms of OMS (Output per Man shift) has been traditionally the lowest among all the subsidiaries of CIL. The loss incurred by the company in the year 2004-05 stood at Rs. 679.20 crore compared to a loss of Rs. 326.38 crore in 2003-04. The company has earned a profit of Rs.43.06 crore (provisional) upto the month of December during the current financial year. 3.24. BRPSE considered the revival proposal of ECL in its 19th meeting on 29.08.2005 and recommended a revival package for the company. The package is under consideration of Government. 3.25. Steps taken by ECL have resulted in 9.5% growth in Coal production and 10.69% increase in overburden removal during April to December, 2005 over the same period last year. Till December, 2005 Company made a provisional profit of Rs.43.06 crores against the loss of Rs.242.06 crores incurred during the same period last year. NORTHERN COALFIELDS LIMITED (NCL) 3.26. Northern Coalfields Ltd. (NCL), a subsidiary company of Coal India Limited (CIL), was incorporated on 28th November, 1985. Located on MP-UP boarder, this coalfields is spread over an area of about 2,202 sq. kms. comprising two basins viz. Mohar sub-basin and Main Basin (1890 sq.km). During the year 2004-05, the company earned a profit of Rs. 1,976.03 crore as compared to 1,647.06 crore during the previous year. The company has earned a profit of Rs.1,574.10 crores (provisional) upto the month of December during the current financial year. MAHANADI COALFIELDS LIMITED (MCL) 3.27. Mahanadi Coalfields Limited with its headquarters at Sambalpur, was incorporated under the Companies Act, 1956 as another subsidiary company of CIL on 03.04.1992. The company had 22 mines situated in the Ib Valley and Talcher Coalfields in the State of Orissa. For effective administrative control and efficient functioning of operational activities, the mines are grouped into 10 areas. During the year 2004-05, the company earned a profit of Rs. 1,469.36 crore as compared to Rs. 22 ______________________
1,418.60 crore during the previous year. The company has earned a profit of Rs.1,208.83 crore (provisional) upto the month of December during the current financial year. CENTRAL COALFIELDS LIMITED (CCL) 3.28. This company has its headquarters at Ranchi in Jharkhand and covers East and West Bokaro, Ramgarh, Giridih, North and South Karanpura, Hutar and Daltanganj Coalfields of Kharkhand. Apart from several nationalized mines, it owns most of the mines of former National Coal Development Corporation Ltd. The company produces medium coking coal (raw and washed), non-coking coal, soft coke and hard coke. The company has earned a profit of Rs. 437.81 crore during 2004-05 as compared to Rs. 370.38 crore during the previous financial year. The company has earned a profit of Rs.618.04 crore (provisional) upto the month of December during the current financial year. NORTH EASTERN COALFIELDS (NEC) 3.29. North Eastern Coalfields, with its headquarters at Margherita, is a unit directly controlled by CIL and is responsible for development and production of coal in the North Eastern States. The present mining activities are confined to the State of Assam. SINGARENI COLLIERIES COMPANY LIMITED (SCCL) 3.30. SCCL is a joint undertaking of Government of Andhra Pradesh and the Government of India. The equity capital is shared in the ratio of 51:49 between Government of Andhra Pradesh and the Central Government respectively. The Headquarters of the company is at Kothagudem in Andhra Pradesh. 3.31. In 1994, SCCL was under reference to BIFR as a sick industrial company within the meaning of section 3(1)(0) of the Sick Industrial Companies (Special Provisions) Act, 1985. A turn-around package for rehabilitation of SCCL approved by the Government of India in consultation with Government of Andhra Pradesh and the company, was submitted to BIFR. Following this, BIFR vide its order dated 10.01.1995 decided that it was no longer necessary to pursue the case of the company under the provisions of the said Act. Under section 23 of the said Act, SCCL became a potentially sick company on finalisation of its 1995-96 accounts. In December 1996, the company was again referred to BIFR as a potentially sick company. Since then, the company has registered a remarkable turn around. It is now a profit making company. The accumulated profit of SCCL as on 31.3.2005 stand at Rs. 19,060 lakh. The Company has earned a net profit before tax of Rs. 57,601 lakh during the year 2004-05. ----- x ----- x ----- x ----______________________
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CHAPTER IV
COAL EXPLORATION
4.1. Regional and Promotional Exploration: Exploration for coal is carried out in two stages. In the first stage, Geological Survey of India (GSI) undertakes Regional Exploration of large areas to find out the broad availability of coal seams, geological structure, resource etc. on a continuous basis, confirming the prognosticated occurrence of coal. Ministry of Mines provides fund for it. In order to supplement and augment the efforts of the GSI for Regional Exploration, Government introduced a scheme of Promotional (Regional) Exploration in Coal and Lignite in 1989 which is under implementation on plan-to-plan basis. Services of Mineral Exploration Corporation (MECL), GSI and CMPDI are taken for carrying out Promotional (Regional) Exploration in various parts of the country. Ministry of Coal provides fund for this scheme. The Sub-committee on Energy Minerals (Group III of Central Geological Programming Board) with representatives of GSI, CMPDI, MECL, Singareni Collieries Company Limited (SCCL), Neyveli Lignite Corporation (NLC), CFRI, Ministry of Coal, Planning Commission etc., approves the programmes, coordinates and reviews the Regional Exploration work. CMPDI acts as a nodal agency for disbursement of funds for Promotional Exploration besides carrying out technical supervision of MECLs work in coal Sector. 4.2. Detailed Exploration: : In the second stage, Detailed Exploration is carried out in potential areas of small size identified through Regional/Promotional Exploration, as per the requirements of Coal Companies in CIL blocks and others in Non-CIL/Captive blocks. Such blocks are taken up for detailed drilling to bring the reserves into Proved category and thus to reduce the uncertainties. The results of Detailed Exploration are incorporated in Geological reports that lead to Mine Feasibility Studies/Mining Plans and formulation of Project Reports of Mining. The reports are used for exploitation of coal reserves considering factors like emerging demand, its location, and availability of infrastructure for coal evacuation and technoeconomics of the mine development including coal quality. 4.3 The Detailed Exploration is funded by Coal Companies from their capital budget. CMPDI directly and in a limited manner through State Govts., carries out detailed exploration in CIL command areas whereas SCCL takes up such work in its own area. CMPDI is also conducting Detailed Exploration in Non-CIL/Captive Mining blocks within the CIL Command Area. 4.4. Detailed Exploration in Non-CIL Blocks: In December 1996, 275 blocks were earmarked for supporting CILs production needs till 2036-37. After that, subsidiaries of CIL were not willing to fund for exploration in other than CIL areas 24 ______________________
(i.e. Non-CIL Blocks). CMPDI proposed to conduct exploration in Non-CIL blocks to enable private entrepreneurs to readily locate prospective blocks and save 3-5 years in production schedule by paying the cost. Ministry of Coal approved the proposal of CMPDI for taking up such exploration in IX Plan and subsequently for X plan also. 4.5 In November 2003, Ministry of Coal decided that henceforth all exploration in the captive blocks would be done by CMPDI or under its direct supervision. Allocation of a captive block is not done unless it has been explored enough to base a mining plan on the so available data (including assessment of extractable reserves). Ministry of Coal further desired to have detailed exploration of certain Mining blocks. Accordingly, the approved cost of the proposal is necessitated to be revised and a Revised Cost Estimate of Rs.93.84 crores is under process of approval with a revised drilling target of 2.65 lakh meters in the Tenth Plan against 2.13 lakh meters approved initially. The drilling target for 2005-06 is 0.383 lakh meters. 4.6. Promotional Exploration: Sub-Group II on Coal & Lignite Exploration for formulation of X Plan has recommended the continuation of scheme for Promotional (Regional) Exploration in X Plan also. EFC, in its meeting held on 3.6.03, has approved the proposed expenditure of Rs.275.80 crore in X Plan for carrying out 6.0 lakh meter of drilling by GSI, MECL and CMPDI in coal and lignite, CBM studies in association with promotional exploration and creation of coal and lignite resource information system. However, in Mid Term Review of X plan, the envisaged drilling has been revised to 6.90 lakh m and total cost estimates revised to Rs.261.55 crores. It has been envisaged to carry out 1,58,350 meter of promotional drilling in 2005-06 (proposed RE) in coal & lignite. 4.7. Captive Coal Mining Blocks: Under the existing provisions of Coal Mines (Nationalisation) Act, 1973, coal blocks for captive mining are allocated to public/private companies engaged in manufacture of iron & steel, generation of power and production of cement. Allocation of captive mining blocks is decided by the Committee headed by Secretary in the Ministry of Coal. 148 captive mining blocks (141 under the jurisdiction of Coal India Ltd. and 7 under the jurisdiction of Singareni Collieries Comp. Ltd) have been identified for allocation for captive use. 87 properties have so far been allocated to various public/private parties. To ensure that mining in allocated coal blocks is taken up expeditiously, instructions have been issued to those companies who have been allocated coal blocks but have not yet purchased geological report, to purchase geological reports from CMPDI immediately failing which the coal blocks allocated to them could be considered for de-allocation. The Coal Controller has been designated to monitor the progress of allocated coal blocks. Review of progress is being taken up by Ministry of Coal periodically.
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INVENTORY OF COAL RESOURCES OF INDIA 4.8. As a result of exploration carried out up to the depth of 1200m by the GSI,
CMPDI and MECL etc, a cumulative total of 253.30 Billion tonnes of Geological Resources of Coal have so far been estimated in the country as on 1.1.2006. The state-wise distribution of coal resources and its categorisation are as follows: State Andhra Pradesh Arunachal Pradesh Assam Bihar Chhattisgarh Jharkhand Madhya Pradesh Maharashtra Meghalaya Nagaland Orissa Uttar Pradesh West Bengal Total Proved 8403 31 315 0 9570 36148 7565 4653 117 4 16911 766 11383 95866 Coal Resources in Million Tonnes Indicated Inferred Total 6158 2584 17145 40 19 90 27 34 376 0 160 160 27433 4439 41442 31411 6339 73898 9258 2935 19758 2432 1992 9077 41 301 459 1 15 20 30793 14295 61999 296 0 1062 11879 4553 27815 119769 37666 253301
4.9. Categorisation of Resources: The coal resources of India are available in sedimentary rocks of older Gondwana Formations of peninsular India and younger Tertiary formations of north-eastern/ northern hilly region. Based on the results of Regional/ Promotional Exploration, where the boreholes are normally placed 1-2 Km apart, the resources are classified into Indicated or Inferred category. Subsequent Detailed Exploration in selected blocks, where boreholes are less than 400 meters apart, upgrades the resources into more reliable Proved category. The Formation-wise and Category-wise coal resources of India as on 1.1.2006 are given below:
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(in Million Tonnes) Formation Gondwana Coals Tertiary Coals Total Proved 95399 467 95866 Indicated 119663 106 119769 Inferred 37297 369 37666 Total 252359 942 253301
Type-wise and Category-wise coal resources of India as on 1.1.2006 are given below: (in Million Tonnes) Type of Coal (A) Coking :-Prime Coking -Medium Coking -Semi-Coking Sub-Total Coking (B) Non-Coking*:Total (Coking & Non-Coking) Proved 4614 11445 482 16541 79325 95866 Indicated 699 11751 1003 13453 106316 119769 Inferred 1880 222 2102 35564 37666 Total 5313 25076 1707 32096 221205 253301
* Including total coal of North Eastern Region. 4.10. Status of Coal Resources in India during Last Five Years: As a result of Regional, Promotional and Detailed Exploration by GSI, CMPDI and SCCL etc, the estimation of coal resources of India has reached to 253.30 Bt. The estimates of coal resources in the country during last 5 years are given below: (in Million Tonnes) As on 1.1.2002 1.1.2003 1.1.2004 1.1.2005 1.1.2006 Proved 87320 90085 91631 92960 95866 Indicated 109377 112613 116174 117090 119769 Inferred 37417 38050 37888 37797 37666 Total 234114 240748 245693 247847 253301
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EXPLORATION ACTIVITIES OF CMPDI 4.11. CMPDI is continuing its programme of Detailed Exploration in 2005-06 also. The emphasis has been on proving power grade and superior grade Non-Coking coals in CIL and Non-CIL Blocks. A nominal amount of Promotional Drilling has also been carried out in North Karanpura and Tawa Valley coalfields. DRILLING: 4.12. For the purpose of Detailed Exploration, CMPDI has largely deployed its own drilling resources. The drilling resources of MECL and State Govt. of M.P., Chhattisgarh & Orissa are deployed in a limited manner on contractual basis. On an average, 50 to 56 drills were operated by all agencies during the period April to December 2005. 4.13 During the period under reference, exploratory drilling has been conducted in 66 blocks spread over 18 coalfields in the states of West Bengal, Jharkhand, M.P., Chhattisgarh, Maharashtra and Orissa. This includes detailed exploration of 7 NonCIL blocks and promotional exploration of 3 blocks by CMPDI. 4.14 A total of 1,32,869 meter of exploratory drilling has been carried out by CMPDI and its contractual agencies during the period April to December 2005. The agency-wise performance of drilling is given below: Agency-wise Performance of Exploratory Drilling by CMPDI & Its Contractual Agencies during April to December 2005 (In CIL, Non-CIL and Promotional Blocks) Agency Annual Produc- % Achiev. Achieved Average. Target April to Dec. No. tivity against 2005-06 2005 of Drills (meterage Annual (m) (m) Operated drilling per Target month) CMPDI 1,92,000 1,28,420 42-46 322 67% MECL Unscheduled 792 0-2 198 State Govts. -M.P. & 3,500 3,657 7-9 48 104% Chhattisgarh -Orissa 3,500 0 0 0 0% Total 1,99,000 1,32,869 50-56 277 67% Note: Drilling by CMPDI includes 7,599m of Promotional Drilling, 95,583m of Detailed Drilling in CIL blocks and 25,067m of Detailed Drilling in Non-CIL/ Captive Mining blocks. MECL & State Govts. have worked in CIL blocks only. ______________________
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4.15 During the period under report, CMPDI drills have recorded a productivity of 322 metre, per drill, per month which is better than 296m achieved in same period of previous year. The overall productivity per drill per month for all agencies is 277m, which also is better than achieved (265m) in same period of previous year. 4.16 The details of Coal Company Command area wise and agency-wise exploratory drilling for coal during April to December 2005 are given in the table below:
Agency and Company Command Area-wise Exploratory Drilling Achievements During April to December 2005 (in CIL, Non-CIL and Promotional Blocks) % AchieveAgency RI/ Company Annual Target Achieved ment against April to Command Area RE Annual Target Dec. 2005 2005-06 (m) (m) CMPDI RI-I/ECL/BCCL 21000 16989 81% RI-III/CCL 29000 17880 62% RI-IV/WCL 31000 19489 63% RI-V/SECL 52000 35653 69% RI-VI/NCL 11200 9402 84% RI-VII/MCL 43000 28895 67% HQ/BCCL 4800 112 2% CMPDI TOTAL 192000 128420 67% MECL RI-IV/WCL Unscheduled 792 MECL TOTAL Unscheduled 792 DGM(M.P./ RI-V/SECL 3,500 3,657 104% Chhattisgarh) DG(Orissa) RI-VII/MCL 3,500 0 0% STATE GOVTS. TOTAL 7,000 3,657 52% GRAND TOTAL 1,99,000 1,32,869 67%
4.17 Drilling in Non-CIL Blocks: Out of the total drilling stated above, a sum of 25,067m of detailed drilling has been carried out in Non-CIL/Captive Mining blocks in the period April to December 2005. Departmental drills of CMPDI have carried out such drilling in seven blocks. The details of the blocks taken up and drilling carried out is given in table below:
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Agency
CMPDI
Coalfield Company Command Area CCL N.Karanpura S.Karanpura Sohagpur Mand Raigarh
Non-CIL/Captive Mining Blocks Babupara Rautpara Tokisud-II Batura Gare Sector - III Pelma Machhukata
Meterage DrilledApr.-Dec. 2005 (m) 156 679 3,458 2,527 7,787 1,011 9,449 25,067
SECL
MCL Talcher Total Drilling in Non-CIL blocks:
4.18 Promotional Drilling by CMPDI: CMPDI continued the Promotional Drilling in Ashoka Karkata West blocks of North Karanpura coalfield and Banbahera block of Tawa Valley coalfield. Additionally, Deonad-I block in NK coalfield has also been taken up in 2005-06. A total of 7,599m of Promotional Drilling has been carried out by CMPDI during the period April to December 2005, as detailed below:
Company Command Area CCL Coalfield Promotional Blocks Meterage Drilled April to Dec. 2005 (m) 2539 1704 3356 7599
North Karanpura Deonad-I North Karanpura Ashoka Karkata West WCL Tawa Valley Banbahera Total Promotional Drilling by CMPDI
GEOPHYSICAL SURVEYS: 4.19 CMPDI has carried out the following work during the period April to December 2005: a. Geophysical Logging: Boreholes drilled for exploratory drilling are logged by existing Geophysical logging instrument to get the insitu information of different strata encountered in the borehole. CMPDI carried out a total of 2388 metre of geophysical logging during the period April to December 2005 as per details given below: Blocks CIL/others Non-CIL Total ______________________
Total Depth Logged (m) 2252 136 2388

30
CMPDI has recently procured and commissioned two deep capacity Geophysical Loggers and more boreholes will be logged geophysically by latest technology in coming months. b. Surface Geophysical Surveys: CMPDI carried out surface geophysical surveys in CIL and Non-CIL blocks for delineation of coal seams, assessment of its geometry in shallow and deep areas and identification of intrusive/basement formations. Following work have been conducted during the period April to December 2005: Blocks Electrical Survey Profiling (Line Km) 10 31 41 Vertical Electrical Sounding (Nos.) 48 12 15 75 Magnetic Survey (No. of Stations) 2638 720 3358
CIL/Others Non-CIL Promotional Total
HYDROGEOLOGICAL STUDIES: 4.20 Following Hydro-geological Studies have been carried out by CMPDI during the period April to December 2005: a) As per X Plan Road Map, hydro geological studies for EMP preparation in 8 project areas of ECL have been completed and reports submitted. Studies are in progress in 2 other project areas. Hydro geological study of Kalyaneswari block of BCCL has been completed and report submitted. Hydro geological studies for EMP preparation in two other blocks of BCCL are in progress. As per X Plan Road Map, hydro geological studies for preparation of EMPs of 6 project areas of CCL have been completed and reports submitted. Studies in 13 other project areas are in progress. Preparation of hydro geological and watershed model for West Bokaro Coalfield is in progress. Geo-Technical investigations of Garhi Dam site of Jharkhand Govt. has also been completed and report submitted during the period. As per X Plan Road Map, hydro geological studies for EMP preparation of one project area of WCL have been completed and reports submitted. Studies for 7 other project areas are in progress. Hydro geological note for 27 project areas have been completed and for 2 other areas is in progress. Groundwater
31
b)
c)
d)
______________________
level monitoring in 8 project areas of WCL is continuing and Special hydro geological studies are also underway in 8 project areas of WCL. e) As per X Plan Road Map, hydro geological studies for EMP preparation in 4 project areas of SECL have been completed and reports submitted. Studies are in progress in 16 other project areas. A study on water supply to NTPC plant, Seepat has also been completed and report submitted. Hydro geological studies of Hasdeo area, covering all the mines, are also under progress. Hydro geological studies for EMP preparation of two blocks of NCL area have been completed and studies in two other blocks are in progress. Advance Mine Dewatering Schemes for Kasnau and Matasukh Lignite mines of RSMML (Rajasthan) have been modified on the basis of pilot study during the referred period.
f) g)
GEOSYSTEMS: 4.21 CMPDI looks after the computerisation of geological data and preparation of geological models. In CMPDI, most of the Geological Reports are prepared by using in-house package CEMPGEODOC and imported modelling s/w MINEX. All the Regional Institutes of CMPDI, along with HQ, are equipped with geological modelling s/w MINEX. CMPDI has also taken up a project on Creation of Integrated Coal Resource Information System, under Promotional Exploration programme of X plan. The project has been sanctioned in October 2004 and following activities are in progress: a) The preparatory work like establishment of data centres at 9 locations, procurement of hardware/software and related training programmes, are in progress. Capture of basic borehole data from old GRs to standardized computer format has been started and is in progress for 206 GRs of nine coalfields. Tender for map data capture is in advance stage of finalisation. Selection of Geological and Mine Planning Software is in progress to meet the project requirement of GIS application and web-enabling services. Database design for data storage has been taken up.
b)
c) d)
e)
______________________
32
DOCUMENTATION: 4.22 A total of five Geological Reports have been submitted during the period April to December 2005 for the Detailed Exploration of coal and 14 more Geological Reports are under various stages of preparation. RESOURCE ESTIMATION: 4.23 The 5 Geological Reports prepared so far have estimated 1.83 Bilion Tonnes of coal resources. Out of it, 0.81 Bt is in Proved category and 1.02 Bt is under Indicated category.
----- x ----- x ----- x -----
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33
CHAPTER V
PLANNING
COAL SECTOR 5.1. History of coal mining in India dates back to 1744, when coal was first mined in the Raniganj coalfield in West Bengal. However, coal production in the pre-independence era and in the first two decades after independence was very slow. Annual production was stagnant at 70 million tonnes during late sixties and early seventies and was inadequate to meet growing demand of coal for generation of power and for other industrial and metallurgical purposes. The oil crisis of early seventies spurred the Government into taking a hard look at the coal sector. Recognising the importance of coal, a primary source of energy in the national economy and the massive investment needed to meet the huge demand, coal industry in India was nationalised in phases in 1972 and 1973. The primary goal for nationalised coal industry was to ensure a scientific approach to exploration and exploitation of coal deposits with due attention to safety, conservation and environmental aspects while accelerating the production level through substantial investment so as to reduce India's dependence on oil. Ninth Five Year Plan period (1997-2002) Coal Demand 5.2. At the time of formulation of 9th Five Year Plan Working Group on Coal & Lignite, constituted by Planning Commission had assessed country's raw coal demand in 2001-02, the terminal year of the 9th Plan at 405.00 million tonnes. To meet this demand, Working Group on Coal and Lignite had indicated an indigenous coal production of 359.60 million tonnes (CIL=303.00 m.t. SCCL=36 m.t. and Others=20.70 m.t.) for the same period. However the total availability of indigenous coal as projected by Planning Commission was 370.60 out of which Planning Commission had given a target of 314.00 m.t. for CIL but this was not accepted by the then Ministry of Coal due to various constraints. Therefore, overall production by the terminal year of 9th Five Year Plan was projected at 359.60 m.t. At the time of Mid-Term Appraisal the target of production for the terminal year of 9th Five Year Plan i.e. 2001-02 was fixed at 328.86 million tonnes. 5.3. Against the projection of 9th Plan, year-wise demand assessed by Planning Commission for each of the year is given below: ______________________
34
(million tonnes) Year 1997-98 1998-99 1999-00 2000-01 2001-02 Production 5.4. The target for the first year of 9th Five Year Plan (1997-98) was fixed at 297.45 million tonnes. The total production during the year was 295.80 million tonnes i.e. 99.45% of the targeted figures. The target for coal production during the year 1998-99 was fixed at 306.50 million tonnes. The projected target for 1998-99 was kept 2.85% higher over the of 1997-98 and the production recorded during the same period was 292.27 million tonnes, which works out to be 95.35%. The total production target for the year 1999-2000 was 298.90 m.t. and the total production during the same period was recorded at 299.97 million tonnes which works out to be 100.36%. The projected figure of coal production for the year 2000-01 was fixed at 308.07 million tonnes and against this target the total production for the year 2000-01 has been 313.64 million tonnes which works out to 101.80%. The target for the year 2001-02 was fixed at 322.73 million tonnes and the against this target, the production for the period of April-March, 2002 has been recorded 327.64 million tonnes which works out to be 101.52% of the targeted figure. Coal Production during Annual Plans of 9th Five Year Plans (in million tonne)
Company ECL BCCL CCL NCL WCL SECL MCL NEC CIL SCCL Others Total 1997-98 Target Actual 32.50 27.42 30.70 30.92 33.50 33.08 37.00 37.12 30.50 32.52 55.50 56.63 39.50 42.17 00.80 00.69 260.00 260.55 31.00 28.94 6.45 6.31 297.45 295.80 1998-99 Target Actual 32.00 27.16 32.30 27.17 35.00 32.18 37.00 36.52 32.00 31.75 58.70 57.56 41.00 43.51 00.85 00.64 268.85 256.48 31.00 27.33 6.65 8.46 306.50 292.27 1999-2000 Target Actual 29.00 25.12 27.50 27.90 33.50 32.40 37.50 38.43 32.00 33.86 58.00 58.75 41.00 43.55 00.60 00.57 259.10 260.58 31.00 29.56 8.80 9.84 298.90 299.97 2000-01 Target Actual 28.00 28.03 29.50 25.97 34.00 31.75 39.00 41.40 33.00 35.20 60.00 60.33 43.00 44.80 00.50 00.66 267.00 268.14 31.67 30.27 9.40 15.23* 308.07 313.64 2001-02 Target Actual 28.50 28.50 30.00 25.25 36.00 33.81 41.50 42.46 35.00 37.01 63.00 64.12 44.50 47.81 00.50 00.64 279.00 279.65 32.38 30.81 11.35 17.18* 322.73 327.64
Demand 323.40 (6.80) 325.38 (7.50) 311.83 (3.00) 333.85 (5.02) 354.29 (4.83)
Figures in bracket represent middlings.
* indicates including Meghalaya.
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35
5.5. The productivity measured as output per man shift (OMS) (actual) in tonnes. The actual figures for the 9th Five Year Plan i.e. 1997-98 to 2001-02 are given below. (figures in tonnes) Year 1997-98 1998-99 1999-00 2000-01 2001-02 UG 0.57 0.59 0.61 0.63 0.64 Coal India Limited OC Overall 5.07 1.93 5.52 2.03 5.46 2.11 5.92 2.30 6.08 2.45 Singareni Collieries Company Ltd. UG OC Overall 0.76 7.01 1.45 0.75 3.92 1.31 0.75 4.42 1.42 0.79 5.94 1.50 0.85 6.74 1.66
Ninth Five Year Plan Outlay 5.6. The total plan outlay assessed by the Working Group on Coal and Lignite for 9th Five year Plan and reassessed by Ministry of Coal are given below. (Rs. in Crores)
Name of Company/Scheme Coal India Limited Singareni Collieries Company Limited Neyveli Lignite Corp. Ltd. Regional Exploration Science & Technology Environmental Measures Subsidence Control Detailed Drilling Rehabilitation & Control of fire and subsidence in Jharia & Raniganj coalfields Research & Development Centre Regulatory Framework Review Project Voluntary Retirement Scheme funded through Ministry of Coal Total Voluntary Retirement Schemes funded through National Renewal Fund Grand Total Allocation approved by N.D.C. 12401.00 2235.00 4448.16 130.00 80.00 79.00 9.38 50.00 Allocation approved by P.C. during Mid-Term Appraisal 12000.00 1665.32 4570.00 140.00 80.00 79.00 91.18 50.00
1.00 8.05 ---19441.59 400.00 19841.59
1.00 8.05 459.19 19143.74 240.00 19383.74
______________________
36
Plan Expenditure 5.7. Actuals for the each year of the Ninth Five Year Plan are given below: (Rs. In crores)
Year 1997-98(Actual) 1998-99(Actual) 1999-00(Actual) 2000-01 (Actual) 2001-02 (Actual) CIL 1824.55 1831.97 2769.66 1059.32 1146.69 SCCL 208.48 206.09 145.20 194.10 181.92 NLC 186.34 581.07 652.60 1061.02 670.55 S&T/R.E./EMSC/ D.D. / R.F.R.P./ R.P.J.R./ V.R.S./ N.E.Region * 30.30 44.80 56.00 281.81 401.28
* S&T Science & Technology R.E. Regional Exploration EMSC Environmental Measures & Subsidence Control D.D. Detailed Drilling R.F.R.P. Regulatory Framework Review Projects R.P.J.R. Rehabilitation Control of Fire & Subsidence in Jharia & Raniganj V.R.S. Voluntary Retirement Scheme. N.E.Region - North East Region
Neyveli Lignite Corporation Ninth Five Year Plan 1997-2002 5.8. The target and actual figures during the 9th Five Year Plan i.e. 1997-98 to 2001-02 of lignite production, power generation, urea and coke are given below:
Year 1997-98 Target Actual 1998-99 Target Actual 99-2000 Target Actual 2000-01 Target Actual 2001-02 Target Actual Lignite (million tonnes) 16.50 18.10 17.50 18.17 17.50 17.55 17.50 18.17 17.50 18.37 Power Gen. (million Units) 11365.00 13402.27 11715.00 13340.00 12431.00 13304.74 12421.00 14673.18 13083 14451.32 Urea (tonnes) 124,000 102,690 105,000 67,834 96,000 17,204 137,000 97,851 150,000 61950 Coke (tonnes) 240,000 233,963 240,000 205,269 240,000 122,900 240,000 86,426 160,000 11965*
* Leco (4383 tonnes), Fine (7582 tonnes)
______________________
37
Expenditure 5.9. Budget, Revised Estimates and Actuals for the each year of 9th Five Year Plan i.e. 1997-98 to 2001-02 are as under: (Rs. in crores) Year 1997-98 1998-99 1999-2000 2000-01 2001-02 BE 584.77 1112.05 872.62 1168.45 988.81 RE 327.50 750.00 821.86 1125.28 896.76 Actual (Prov.) 168.28 581.93 614.03 1061.02 670.55
Tenth Five Year Plan period (2002-07) Coal Demand 5.10. Working Group on Coal & Lignite for formulation of Tenth Five Year Plan, constituted by Planning Commission has assessed country's raw coal demand in 2006-07, the terminal year of the 10th Plan at 453.29 million tonnes (including of middlings). While the Planning Commission assessed the All India Coal demand at 460.50 MT. (5.24 mt middlings). To meet this demand, Working Group on Coal & Lignite for formulation of Tenth Five Year Plan has indicated an indigenous coal production of 399.73 million tonnes (CIL=350.00 m.t. SCCL=36.13 m.t. and Others=13.60 m.t. including Meghalaya Coal) but later on finalised an indigenous coal production of 405.00 million tonnes (CIL=350.00 m.t. SCCL=36.13 m.t. and Others=18.87 m.t. including Meghalaya Coal) for the same period. However, during the Mid Term Appraisal, All India coal demand has been revised to 473.18 MT and indigenous coal production has been assessed at 431.50 MT by the Planning Commission. 5.11. The demand for the terminal year of the Xth Five Year Plan, as projected by the Working Group originally assessed and revised during Mid Term Appraisal (MTA) by the Planning Commission is shown in the table below:
______________________
38
Coal Demand (In million tonnes)

X Plan 2006-07 (Projection as per WG) X Plan 2006-07 (Finalised in consultation with Planning Commission) 35.32 1.89 37.21 317.14 (3.74) 28.26 (1.40) 24.56 4.18 53.33 (0.10) 2.50 423.29 (5.24) 460.50 (5.24) Xth Plan 2006-07 as per MTA
Sectors
Coking Coal Steel Coke Oven Sub Total Coking Non Coking Coal Power ( Utilities ) Power (Captive) Cement Fertiliser Others Colliery Consumption Sub Total NC
37.66 2.00 39.66 315.44 28.31 21.68 4.18 41.52 2.50 413.63 453.29 *
40.70 2.00 42.70 317.00 28.26 25.40 3.52 59.82 2.50 430.48 473.18
Grand Total
Note : (* ) Inclusive of middling I Washery middlings are shown in brackets. II Steel demand includes imported coking coal of 17.18 Mt in 2006-07 and 24.19 MT revised during MTA. Power (utilities) consumption/demand includes imported coal of 3.30 MT in 2006-07and 9.50 MT revised during MTA. Cement Sector consumption/demand includes imported coal of 3.30 MT in 2006-07 and 3.00 MT revised by MTA. 5.12. Against the projection of 10th Plan, the demands for the year 2002-03, 200304, 2004-05, 2005-06 BE & RE and 2006-07 BE assessed by Planning Commission are given below:
______________________
39
(million tonnes)
Year 2002-03 2003-04 2004-05 2005-06(BE) 2005-06(RE) 2006-07(BE) Demand 365.98(3.25) 380.91(3.19) 405.46 (3.64) 445.65(3.64) 448.73 (3.33) 473.18
Figures in bracket represent middling.
Production 5.13. The target at RE stage for the first four years of the 10th Five Year Plan i.e. 2002-03, 2003-04, 2004-05, 2005-06 actual for the year 2002-03, 2003-04, 2004-05 and actual (provisional) upto the Month of December, 2005 and targeted figure for the year BE 2006-07 are given below: (in million tonne)
2002-03 Target Company (RE) Actual 2003-04 Target (RE) Actual 2004-05 Target (RE) Actual Target (BE) 2005-06 Target (RE) Actual Upto Dec.,05 ECL BCCL CCL NCL WCL SECL MCL NEC CIL SCCL Others Total 28.00 25.50 34.25 45.00 37.20 66.50 49.20 00.65 286.30 32.50 17.00 335.80 27.18 24.15 36.98 45.10 37.82 66.60 52.23 0.63 290.69 33.16 17.39* 341.24 28.00 24.00 38.50 46.50 37.85 69.00 55.00 00.65 299.50 33.50 19.30 352.30 28.00 22.70 37.34 47.03 39.53 71.01 60.05 0.73 306.38 33.85 20.83* 361.06 29.40 25.20 40.00 49.90 41.50 78.11 66.06 0.80 330.97 35.00 20.98 386.95 27.25 22.31 37.39 49.95 41.41 78.55 66.08 0.63 323.58 35.30 22.97* 381.85 29.83 24.22 40.40 50.80 41.90 83.00 72.00 0.85 343.00 36.00 26.38 405.38 32.44 24.22 40.40 50.80 41.90 83.00 72.00 1.05 345.81 36.00 22.97 404.78 20.59 15.76 26.65 36.90 30.58 59.93 50.71 0.61 241.73 24.54 16.12 282.39 2006-07 Target (BE) 33.00 25.20 42.00 52.00 42.00 88.50 80.00 1.10 363.80 37.50 22.97 424.27
* excluding Meghalaya Coal Production 5.14. The all India coal demand assessed for the year 2006-07 is 473.18 million tonnes. Against this demand, availability of coal in 2006-07 is indicated as under:
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40
(In million tonnes)

Coal India Limited Singareni Collieries Company Ltd Others* Stock liquidation by CIL Total 363.80 37.50 22.97 2.29 426.56
IISCO/DVC/J&K/BSMDCL/TISCO/Captive mining/Meghalaya
5.15. Thus there would be a gap of 46.62 million tonnes between demand and supply and this is likely to be met through import mainly by Steel, Power and Cement sectors. Output perman shift (OMS) 5.16. The targeted figure at BE & RE stage and actuals for the year 2002-03, 200304, 2004-05 and 2005-06 BE & RE and actuals upto the month of December, 2005 and BE for the year 2006-07 are given below: (figures in tonnes)
Year UG 2002-03(BE) 2002-03(RE) 2002-03(Actuals) 2003-04(BE) 2003-04 (RE) 2003-04 (Actuals) 2004-05 (BE) 2004-05 (RE) 2004-05(Actual) 2005-06 (BE) 2005-06 (RE) 2005-06(Actual) 2006-07(BE) 0.69 0.67 0.69 0.69 0.70 0.68 0.71 0.69 0.69 0.71 0.73 0.70 0.73 Coal India Limited OC 6.86 6.53 6.30 6.96 6.64 6.67 7.12 7.16 7.18 7.99 7.95 7.23 8.66 Overall 2.58 2.58 2.67 2.71 2.77 2.82 2.92 3.01 3.05 3.33 3.30 3.13 3.56 Singareni Collieries Company Ltd. UG 0.84 0.86 0.86 0.94 0.90 0.86 1.02 0.85 0.85 1.05 0.86 0.85 1.04 OC 7.98 7.88 7.66 6.80 7.37 7.67 7.37 7.80 8.83 7.89 8.90 8.49 8.17 Overall 1.66 1.75 1.88 1.80 1.90 1.81 1.94 1.90 1.99 2.16 2.00 1.93 2.38
Tenth Five Year Plan Outlay 5.17. The total plan outlay assessed by the Working Group on Coal and Lignite for 10th Five year Plan finalised by Planning Commission and revised during MTA are given below. ______________________
41
(Rs. in Crores)
Name of Company/Scheme
Allocation projected by Working Group 14310.00 2113.00 9145.00 435.00 100.00 163.00
Coal India Limited Singareni Collieries Company Limited Neyveli Lignite Corp. Ltd. Regional Exploration Science & Technology Environmental Measures Subsidence Control Detailed Drilling Rehabilitation & Control of fire and subsidence in Jharia & Raniganj coalfields Research & Development Centre Regulatory Framework Review Project Voluntary Retirement Scheme funded through Ministry of Coal Total
Allocation originally assessed by the Planning Commission 14310.00 2113.00 14133.48 * 275.80 100.00 163.00
Revised during MTA by the Planning Commission 10975.13 1550.00 5123.17 261.55 72.93 150.52
-----
70.66 ---
93.84 ---
-----
-----
-----
430.00
425.06
425.06
26696.00
31591.00
18652.20
* The increase in fund requirements over the assessment made by the Working Group is largely due to increase in outlays of Neyveli Lignite Corporation (NLC) Plan Expenditure 5.18. BE, RE & actuals for the year 2002-03, 2003-04, 2004-05 and BE, RE & actual upto December, 2005 for the year 2005-06 and targeted figures for the year 2006-07 are given below:
______________________
42
(Rs. in crores)
Year 2002-03(BE) 2002-03(RE) 2002-03(Actual) 2003-04(BE) 2003-04(RE) 2003-04(Actuals) 2004-05(BE) 2004-05(RE) 2004-05 (Actuals) 2005-06(BE) 2005-06(RE) 2005-06(Actual upto December, 2005) 2006-07(BE) CIL 2190.00 1700.00 1192.17 2240.00 1846.00 1156.82 2310.00 1877.35 681.89 2814.00 2224.00 920.39 3063.70 SCCL 405.00 227.00 139.49 340.00 205.00 163.42 325.00 275.00 150.13 395.00 395.00 253.03 577.09 NLC 584.95 617.60 434.83 455.40 314.25 158.04 480.70 267.00 143.69 640.00 368.00 92.44 990.00 S&T/R.E./EMSC/ D.D./ V.R.S.# 311.77 263.07 157.43 285.90* 238.87* 182.05 223.32 275.67 189.83 152.05 177.76 86.04 168.71
*10% of budgetary provision to be earmarked for NEC. #S&T Science & Technology R.E. Regional Exploration EMSC Environmental Measures & Subsidence Control D.D. Detailed Drilling V.R.S. Voluntary Retirement Scheme.
Neyveli Lignite Corporation Tenth Five Year Plan 2002-07 Annual Plans 2002-03, 2003-04 and 2004-05 5.19. The targeted figures (BE, RE and actuals for 2002-03, 2003-04, 2004-05), BE, RE for the year 2005-06 and actual figures upto the month of December, 2005 and targeted figures for the year 2006-07 of lignite production, power generation, Urea and coke production are given below:
Year 2002-03 (BE) 2002-03 (RE) 2002-03 (Actual) 2003-04 (BE) 2003-04 (RE) 2003-04 (Actuals) 2004-05 (BE) 2004-05 (RE) 2004-05 (Actual) 2005-06 (BE) 2005-06 (RE) 2005-06 (Upto December, 2005) 2006-07(BE) Lignite (million tonnes) 19.95 18.85 18.62 20.90 20.90 20.56 21.00 21.00 21.57 20.40 20.40 151.01 20.40 Power Gen. (million units) 14638.00 12350.00 14968.42 15006.00 14837.00 16388.21 15286.00 15286.00 16745.41 15705.00 15705.00 12396.68 15705.00 Urea (tonnes)* 120,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 Coke (tonnes)* 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000
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43
*The fertilizer plant was not in operation since January, 2002 on account of large accumulation of stock of urea owing to marketing constraints because of availability of imported urea at cheaper price. A decision to close the fertilizer unit was taken in January, 2003 during standing committee meeting. Expenditure 5.20. BE, RE and Actuals for the first years of the 10th Five Year Plan (2002-07) i.e. 2002-03, 2003-04, and 2004-05 for NLC are as under: (Rs. in crores)
Year 2002-03 2003-04 2004-05 2005-06 2006-07(BE) BE 584.95 455.40 480.70 640.00 990.00 RE 617.60 314.25 267.00 368.00 -------Actuals 434.83 158.04 219.01 92.44 (Upto December, 2005) -------
----- x ----- x ----- x -----
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44
CHAPTER VI
COAL PROJECTS
6.1 During the year 2005-2006 (01-04-2005 to 31-12-2005), 2 (two) new projects and 2 (two) Advance Action Proposals (AAPs) in Coal Sector and 3 (three) Advance Action Proposals in Lignite Sector were sanctioned by the Government. The list of such projects sanctioned by the government is given below: Projects sanctioned by the Government from 1/4/2005 TO 31/12/2005.
Sl. No 1 2 Name of the projects Dipka Expansion OC Gevra Expansion OC Total Company SECL SECL Capacity (Mty) 10.00 13.00 23.00 Capital cost (Rs. Crores) 856.59 1339.69 2196.28
Advance Action Proposals sanctioned by the Government from 1/4/2005 TO 31/12/2005.

Sl. No. 1 2 3 Name of the AAPs Company Latest Capacity (Mty) --2.1 MTPA 250 MW 500 MW 9 MTPA 1000MW Latest capital (Rs.Crs.) 17.99 9.4685 10.45
Garjanbahal OC Jharsuguda Alignment (ALT-III) Barsingsar Expansion Projects- Mine and Thermal Riri Projects Jayamkondam-Mine-cum Power Project Total
MCL MCL NLC
4 5
NLC NLC
7.50 11.90 57.3085
6.2 List of new projects / RCE / RPR sanctioned by Coal India Limited (CIL) & its subsidiary companies / Singareni Collieries Company Limited (SCCL) under their delegated powers are given in Annexure-I. 6.3. The number of mining projects of CIL and SCCL costing Rs.2 crores and above sanctioned since nationalization till 31.12.2005 is as under:______________________
45
Company ECL BCCL CCL NCL WCL SECL MCL CIL SCCL
More than Rs. 100 Crs 5 3 5 7 1 5 10 36 8
Costing Rs.20 to Rs.2 to 20 100 Crs Crs. 9 47 6 53 11 47 9 3 46 58 46 49 17 8 144 265 46 41
Total 61 62 63 19 105 100 35 445 95
Sancd. Cost (Rs. Crs) 3492.04 1506.53 2708.38 5375.79 3097.28 5702.97 3403.11 25286.10 4885.63
Ultimate Capacity (Mty) 37.38 32.33 55.14 53.50 52.94 97.47 103.09 431.85 54.085
6.4. As on 31.12.2005, out of total 445 mining projects of coal India Limited (CIL) each costing Rs.2 crores & above, 332 projects stand completed (including projects where coal reserves has since been exhausted). Out of the remaining 113 projects under various stages of implementation, 81 are on schedule and 32 are delayed. In Singareni Collieries Company Limited (SCCL), out of total 95 mining projects, 56 have been completed and out of the remaining 39 projects, 31 are on schedule and 8 are delayed. The company wise position is as follows:
Company Total No of Projects No. of completed Projects Ongoing Projects
Total 16 8 17 7 20 29 16 113 39
ECL BCCL CCL NCL WCL SECL MCL CIL SCCL 6.5.
61 62 63 19 105 100 35 445 95
45 54 46 12 85 71 19 332 56
On Schedule 11 5 2 6 20 22 15 81 31
Delayed 5 3 15 1 0 7 1 32 8
STATUS OF PROJECTS MONITORED AT THE GOVERNMENT LEVEL: At the Government level ongoing projects each costing Rs.20 crores & above are being monitored. As on 31.12.2005, there are 108 such projects (Mining & NonMining) under implementation in Coal India Limited (CIL), Singareni Collieries company Limited (SCCL) and Neyveli Lignite Corporation Limited (NLC). Summarized status of these 108 projects is as follows:-
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46
Company
No of Projects 77 27 04 108
CIL SCCL NLC TOTAL
Sanctioned Capital (Rs. Crs) 10376.56 1192.07 5566.31 17134.94
Ultimate Capacity (Mty) 133.20 18.25 6.10 157.55
No of Projects on Schedule 64 22 04 90
No of Projects Delayed 13 05 18
6.6. Details of on-going projects, company wise, costing Rs.20 crore & above in CIL, SCCL and NLC as on 31.12.2005 are given in Annexure-II. 6.7. MAIN REASONS FOR SLIPPAGE IN THE IMPLEMENTATION OF PROJECTS ARE: a) b) c) d) e) 6.8. Delay in acquisition of land and associated problems of rehabilitation, Delay due to adverse geo-mining condition, Delay due to fire, Delay due to shortage of fund and other misc. reasons. Delay due to law & order problems.
STEPS TAKEN TO IMPROVE PROJECT IMPLEMENTATION: Land acquisition and rehabilitation: i) ii) Vigorous follow up action with land acquisition officials of State Govts. Are being actively done to expedite acquisition proceedings. Regular meetings with State Authorities viz. Land Revenue Commissioner, LR Secretary and Chief Secretary are held to sort out acute problems. To overcome the problem of acquisition of land, forestry and environmental clearance, Advance Action for projects costing Rs. 50 crores and above are being sanctioned upto Rs. 20 crores in each case since April 1989 to help initiate processes involve for various clearances before sanction of the projects by the Government.
iii)
Geo-mining constraints: Sophisticated geological and geo-physical exploration technique adopted for advance forecasting of geo-mining condition. Project Management: i) Director (Projects & Planning) posted in each company with overall responsibility of implementation of projects. Comprehensive guidelines for project formulation and monitoring issued by the Dept. of Coal.
47
ii)
______________________
iii)
The system of monitoring at various levels has been standardized.

q
Project monitoring is done on monthly basis or at shorter intervals at the area level by GM/CGMs and by Director (Projects) and CMDs at corporative level. Status of project is also reviewed at every company board meeting by exceptions. Mandatory review of the projects are carried out at company level when the expenditure of the project exceeds 50% of the sanctioned capital. Projects, costing Rs. 100 crores & above, are also reviewed in CIL Board by exception. Review in the administrative ministry / department at the level of Secretary is taken for major projects at regular intervals. Progress reports in respect of Projects costing Rs. 100 Crs. & above are also submitted to Department of Programme Implementation regularly.
Assistance required in project implementation: i) ii) State Govt. should share the responsibility for acquisition of land along with coal companies. Responsibility for acquisition of forestland should be restricted to payment of Net Present Value charges etc. only by the coal companies.
Guidelines by the Government on specific measures to cut delays in implementation of projects
6.9 In order to formulate improvements in project investment decision procedures, Group of Ministers (GOM) meeting was held recently on 13.6.2005. As per the decision of GOM, multiplayer scrutiny of projects have been reduced and the requirement of in-principle approval from Planning Commission and the Pre-PIB stage have been dispensed with. However, obtaining environmental clearance prior to consideration of the project by the CCEA has been kept mandatory. LAND MANAGEMENT Status of land acquisition under the CBA Act, 1957. 6.10 Acquisition proceedings under the Coal Bearing Areas (Acquisition & Development) Act, 1957 (CBA Act) are undertaken by the officials of the company. Underground as well as surface un-worked / virgin coal bearing land can be acquired under this Act. ______________________
48
PROBLEMS OF LAND ACQUISITION. 6.11 Delay in acquisition of land is one of the major issues which leads to time and cost over run of the coal projects. A number of factors may be attributed to cause delay in acquisition of land. Some of them are mentioned below :Tenancy Land State Govt. maintains the land records which are the primarily requisite for preparing the land acquisition proposal. These land records commodity known as Record of Rights ( ROR) are often found not updated causing problem in ascertaining the actual ownership and title of the land. Delay occurs in processing the acquisition proposal at various levels of the State Govt. and preliminary notification after completion of all the formalities such as joint measurement, scrutiny of the proposal etc. takes considerable time. Resistance its often offered by the tenants on the demand of employment which is beyond the norms of the company at the time of taking delivery of possession of land although required statutory provisions are full observed.
Govt. Land Authentication of Govt. (GMK) land by the State govt. is required to ascertain the actual ownership of the area. Authentication work is carried out by the concerned Circle Officer of the District and its delay affect the acquisition process. Dispute about ownership of land between the Revenue and the Forest Deptt. In some cases delay in transfer. Possession of Govt. land sometimes could not be taken due to large scale encroachment over such land. State Govt. is required to transfer the land free from all encumbrance.
Forest Land Proposal for diversion of forest land for non-forest purpose have to pass through various channels of the State as well as the Central Govt. Long chain of processing delays the completion of diversion of forestry proposals. No objection certificate is to be issued by the State Govt. for processing the acquisition of land recorded as Jungle-Than / Chote Jhar, Bare Thaa ki Jungle under the Forest Conservation Act, 1980. Concerned DC issues the NOC. Delay takes place in issuing NOC.
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49
Considerable delay takes place in hading over the forest land after its release by the Centre/ State Government. A time frame for giving possession of the released land is required.
6.12 Company wise position of acquisition of All Rights & Mining Rights under the CBA Act since Nationalization to December 2005 is given below : Company Area Acquired (Hectares) Mining Rights To t a l ** 12471.09 74.88 12545.97 2787.85 3435.85 648.00 22212.41 74234.98 *** 42690.74 15214.00 15214.00 74.91 74.91 824.83 824.83 17574.64 10584.05 28158.69 89498.21 35659.19 134489.23
All Rights * ECL BCCL CCL NCL WCL SECL MCL TOTAL
* All Rights are inclusive of Mining Rights. ** Mining Rights are meant for only mining purpose. *** Inclusive of Railway property vested with erstwhile NCDC for 9331.83 Hectares.
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50
CHAPTER VII
COAL PRODUCTION, DISTRIBUTION AND MARKETING
GENERAL 7.1. Coal has been recognized as the most important source of energy for electricity generation in India. About 75% of the coal in the country is consumed in the power sector. In addition, other industries like steel, cement, fertilizers, chemicals, paper and thousands of medium and small-scale industries are also dependent on coal for their process and energy requirements. In the transport sector, though direct consumption of coal by the Railways is almost negligible on account of phasing out of steam locomotives, the energy requirement for electric traction is still dependent on coal converted into electric power. The Ministry of Coal is engaged in developing coal resources of this country in such a manner to meet the requirements of coal of different consuming sectors. Performance of coal sector in this respect has been impressive. ALL INDIA PRODUCTION OF COAL 7.2. Through sustained programme of investment and greater thrust on application of modern technologies, it has been possible to raise the production of coal from a level of about 70 million tonnes at the time of nationalization of coal mines in early 1970's to 377.27 million tonnes (Provisional) (All India excluding Meghalaya) in 2004-05. Certain significant statistics about coal and lignite are given at AnnexureIII 7.3. Coal India limited and its subsidiaries are the major producers of coal. 241.721 million tonnes (provisional) of coal were produced by Coal India Ltd. and its subsidiaries during 2005-06(April-December) as against the production of 228.541 million tonnes in the year 2004-05(April-December). Showing a growth of 5.77%. 7.4 Singareni Collieries Company Limited (SCCL) is the main source for supply of coal to the southern region. The company produced 24.537 million tonnes(provisional) of coal during 2005-06 (April-December) as against 25.085 million tonnes during the corresponding period last year. Small quantities of coal are also produced by TISCO, IISCO, DVC and others. The company-wise production, despatch and stock details for the last five years are given in Annexure-IV & Annexure-V respectively.
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51
PRODUCTIVITY 7.5. Productivity is measured in terms of raw coal output in tonnes per manshift (OMS). There has been substantial improvement in OMS in Coal Companies during the last decade for CIL group of companies. As against an OMS of 0.58 tonne at the time of nationalization, OMS in Coal India Limited during 2005-06(April-December) has been 3.07 tonnes (provisional). In SCCL the OMS during 2005-2006(AprilDecember) was 1.93 tonnes. Year wise details of productivity of the coal companies are at Annexure-VI. DISTRIBUTION OF COAL TO CORE SECTOR 7.6. Core sector consists of Power, including CPP, Steel, Cement, Defence, Fertilizer and Railways. Power and Cement sectors are allocated coal through Standing Linkage Committee (SLC) operating in the Ministry of Coal. Linkage Committee 7.7. Two types of linkage committees function for deciding the coal linkage to the core sector consumers (i) Standing Linkage Committee (Long-term) (ii) Standing Linkage Committee (Short-term) Standing Linkage Committee(Long-term) 7.8. SLC(Long-term) considers requirement of coal of power, cement and sponge iron consumers at the planning stage and links the requirement in the long-term perspective from a rational source after examining the factors like quantity and quality required, time frame, location of the consuming plants, transport logistics, development plan for the coal mine etc. These Committees for Power, Cement and sponge iron function in the Ministry of Coal. 7.9 The Long-term Linkage Committee is chaired by Additional Secretary, Ministry of Coal and has representatives from Ministry of Power, Ministry of Railways, Ministry of Surface Transport, Planning Commission, Central Electricity Authority, Coal India Limited, CMPDIL and SCCL for deciding long-term coal linkage for power plants. The long-term coal linkage for cement plants the committee is chaired by Additional Secretary, Ministry of coal and representatives from Ministry of Railways, Ministry of Surface Transport, Planning Commission, Ministry of Commerce and Industry, Department of Industrial Policy and Promotion, Coal India Limited, Central Mine Planning & Design Institute Limited, Chairman of coal producing companies and SCCL. Similarly, for deciding the linkage for sponge iron units, the long-term committee is chaired by AS(Coal), Ministry of Coal and ______________________
52
representative from Planning Commission, Ministry of Railways, Ministry of Steel, Chairman, CIL, CMD/SCCL and CMDs of coal producing companies of CIL.
Standing Linkage Committee (Short-term) for power and cement
7.10 SLC(ST) functioning in Ministry of Coal, under the Chairmanship of Additional Secretary, Ministry of Coal, companies of the representatives from Railways, Ministry of Power, Central Electricity Authority, CIL, SCCL, Coal companies, Department of Industrial Policy & Promotion, Cement Manufacturers Association etc. SLC(ST) meetings are held on quarterly basis, to decide the coal movement plan of consumers in power and cement sectors holding long-term coal linkage. SLC also considers mid-term corrections of planned linkages and movement of coal. Although price and distribution of all grades of coal have been deregulated with effect form 1.1.2000, SLC still continues as an administrative mechanism and provides a common platform to the coal producers, consumers as well as the transporters. 7.11 Linkages of coal to thermal power stations are sanctioned by the Standing Linkage Committee on quarterly basis on the basis of recommendation made by the Central Electricity Authority(CEA). The CEA recommendations are based on the power generation programme, ground stock with individual power houses etc. Factors for deciding the linkages are power generation programme, availability of coal and carrying capacity of Railways as well as feasibility of movement by other modes.
(A) POWER HOUSES
7.12. Off-take of coal by thermal power stations during the year 2005-06 (AprilDecember) from CIL & SCCL has been 208.33 million tonnes (Provisional including middlings) as against 200.13 million tonnes during the same period in 2004-05. (B) CEMENT PLANTS
7.13 The despatch to cement plants from CIL and SCCL during 2005-06(AprilDecember) was 11.20 million tonnes (Provisional) as against 10.79 million tonnes during the same period in 2004-05.
7.14 Linkages of coal to cement plants are also sanctioned by the Standing Linkage Committee (Short-term) on quarterly basis. Department of Industrial Policy and Promotion recommends for coal linkage to cement plants on the basis of inputs they receive from the Cement Manufacturers Association.
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53
(C)
STEEL PLANTS
7.15. The Standing Linkage Committee for sanctioning coal linkages to Steel plants/Pig Iron/Sponge Iron/ Cokeries etc. on long term basis was functioning in the Ministry of Steel. Based on recommendations of SLC Ministry of Steel, CIL made allocation to units of this sector. However, the SLC (LT) for sponge iron functioning in the Ministry of Steel has now shifted from Ministry of Steel to Ministry of Coal.
7.16 The allocation of coking coal to steel plants was earlier made by the Coal Controller. However, after deregulation of coking coal, the supplies of coking coal are being made by the coal companies themselves on the basis of linkages established by a competent linkage committee or on the basis of their existing commitments. Production performance of coking coal washeries is given at Annexure-VII (D) SUPPLY OF COAL TO BULK CONSUMERS
7.17. Consumer-wise off-take of coal from Coal India Limited by major consuming sectors is indicated in Annexure-VIII. The main consumers are the power houses, steel plants, cement industry and fertilizer industry. Almost 85% of the total production of coal is consumed by these sectors. COAL DESPATCHES AND STOCKS 7.18. All India figures of production, despatches and Vendible stocks of coal for the previous years are shown in Annexure-IX. The despatches (excluding Meghalaya) during the year 2004-05 were of the order of 373.32 million tonnes. The overall despatches during 2005-06(April-December) have been 284.10 million tonnes (provisional). The Vendible stock as on 31.12.2005 was at a level of 21.07 million tonnes (All India). 7.19 Coal Mining is affected by seasonal factors. Large build up of pithead stocks occurs during the winter months. Production drops during monsoon period. During the period June-September each year, part of the requirements of the consumers is met by drawing down of stocks from the pitheads. MARKETING AND DISTRIBUTION 7.20. The Marketing Division of CIL coordinates marketing activities for all its subsidiaries. CIL has set up Regional Sales Offices and Sub-Sales Offices at selected places in the country to cater to the needs of the consuming sectors at various regions.
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54
MODE OF TRANSPORT 7.21. Important modes of transport of coal in CIL are Railways, Road, Merrygo-Round Systems, Conveyor Belts and the Rail-cum-Sea Route. The share of these modes of transport in the total movement of coal is approximately as under: (a) (b) (c) (d) Railways Road MGR System Other (Belt Conveyor Ropeways, Rail-cum-Sea Routes etc) 48.79% 22.29% 22.99%
5.93% ---------100.0% -----------
Mode-wise dispatches of coal by CIL, and Other Captive Collieries excluding Meghalaya are given in Annexure-X. (A) RAIL MOVEMENT
7.22. Railways constitute the major system of coal transportation in India as about 49% of the coal, the largest single commodity transported by the Railways. The despatch of coal by rail is governed by the Preferential Traffic Schedule of the Indian Railways, under which the programme of movement is to be sponsored by the various sponsoring authorities and accepted by the coal companies. In case of deregulated coal, Railways have allowed coal companies to sponsor the movement of coal. (B) RAIL-CUM-SEA-MOVEMENT
7.23. Coal requirement of some consumers in Southern India, which include power stations and cement plants, are met by moving coal by Rail-cum-Sea Route. This is done in view of the difficulties experienced in moving coal via all Rail Routes from Bengal-Bihar and Main Line-Talcher Coalfields. The requirement of power stations of Tamil Nadu Electricity Board (TNEB) is met by Rail-cum-Sea Route. Haldia, Paradip and Vizag Ports handle the shipments. Distribution of Coal to Non -Core Sector 7.24. The valid linked non-core sector consumers are supplied coal on the basis of past linkages and sponsorship and Maximum Permissible Quantity (MPQ) at average weighed e-marketing price of preceding month. ______________________
55
EXPORT OF COAL 7.25 Coal is under Open General Licence (OGL) list. India exports coal to the neighbouring countries to meet their demand of coal. The traditional buyers of Indian coal are Nepal, Bangladesh and Bhutan. Export to Nepal and Bhutan is done in rupee exchange as per the protocol between the two countries and with Bangladesh it is done in US Dollar. Export of coal to the neighboring countries was earlier canalised through the Mineral and Metal trading Corporation, but for the last few years it has been decanalised. Export of coal by CIL is made through tender route. The quantum of coal exported by CIL during 2004-05 to the neighbouring countries was 16,600 tonnes and the same was 24,580 tonnes during 2005-06 (April December). IMPORT OF COAL 7.26. As per the present Import policy, coal can be freely imported (under Open General Licence) by the consumers themselves considering their needs a based on own their commercial produce. 7.27 Coking coal is being imported by Steel Authority of India Limited (SAIL) and other Steel manufacturing units mainly to bridge the gap between the requirement and indigenous availability and to improve the quality. Coal based power plants, cement plants, captive power plants, sponge iron plants, industrial consumers and coal traders are importing non-coking coal on consideration of transport logistic and commercial prudence as well as against export entitlements. Coke is imported mainly by Pig-Iron manufacturers and Iron & Steel sector consumers using mini-blast furnace. 7.28. Details of import of coal and products during the last five years as under: (in million tonnes) Coal Coking Coal Non-coking Coal Coke Total Import 2000-01 11.06 9.87 2.42 23.35 2001-02 11.11 9.44 2.28 22.83 2002-03 12.95 10.31 2.25 25.51 2003-04 12.99 8.69 1.89 23.57 2004-05 14.57 11.56 2.51 38.64
7.29 The current duty( during 2005-06) on imported coal as amended on 28.2.2004 is as under:______________________
56
Type of coal Coking Having upto 12% ash Coal Having ash 12% and more Coke Non-Coking Coal HARD COKE
Import Duty 0% 15% 5% 5%
7.30. The distribution of hard coke was decontrolled in 1975. The consumers are required to approach the concerned sponsoring authorities to get their demand sponsored directly to the Coal Company, which then makes arrangements for supply of this commodity to the consumers. The despatch of hard coke by CIL in the year 2004-05 was 0.50 lakh tonnes. The despatch of hard coke by CIL during the year 2005-06(April-December) has been 0.16 lakh tonnes. (Provisional). COAL CONSUMERS COUNCILS 7.31. For redressal of consumer's grievances and monitoring of complaints received from the consumers, one Regional Coal Consumers Council has been set up for each coal company. An Apex body viz. National Coal Consumers Council has also been set up at the Headquarters of Coal India Limited. In case the complainant does not receive a reply within a month or the complainant is not satisfied with the reply of Coal Company, he may prefer a complaint to the National Coal Consumers Council. E-Marketing of Coal By CIL 7.32. Trial e-marketing has been introduced consequent upon as a result of orders of Honble Calcutta High Court which, whilst setting aside the system of coal supplies to non-core sector consumers based on distinction of linkages and sponsorships, had directed that coal to such consumers should be sold through Open Sales Scheme. Subsequent to the SLP filed by CIL against the order of Calcutta High Court, CIL had submitted an undertaking in the Supreme Court that a transparent marketing policy would be evolved. Trial e-marketing is a transparent and modern endeavour in that direction. By this initiative, it is also envisaged that black marketing of coal, which is a frequent complaint, will stop and premium now being cornered by unscrupulous traders and bogus industries will accrue instead to Coal Companies enhancing their profitability/viability. Further, genuine non-linked consumers, who have no official source of coal supply and have to access the black market, will now have an official channel of supply. 7.33. Two trials of e-marketing were initially conducted in Bharat Coking Company Limited between December 04 and March 05 and two trials were also held in North ______________________
57
Eastern Coalfields in March 05. These e-marketings were conducted by the Metal Scrap and Trading Corporation (MSTC) and Metal Junction and the IIM, Calcutta was asked to concurrently evaluate the outcome of these marketings. 7.34. The Government approved the sale of 10 Million Tonnes of coal by Coal India Limited through e-marketing on trial basis during 2005-06 providing for review of the scheme at the end of the year. CIL has accordingly held e-marketing in all of its eight subsidiaries. Based on the experience gained in the process a coal sales policy is being evolved as per directions of the Court Two trial e-marketings were initially conducted in Bharat Coking Company Limited between November 04 and March 05 and two trials were also held in North Eastern Coalfields in March 05. These e-marketings were conducted by the Metal Scrap and Trading Corporation (MSTC) and Metal Junction and the IIM, Calcutta was asked to concurrently evaluate the outcome of these marketings. 7.35. Subsequently another 10 million tonnes coal was approved by the Government for E-Marketing during 2005-06 based on encouraging performance of sales. 7.36 The details of cumulative results of e-marketing held during April-December, 2005 are summarized below:Number of Bidders Number of successful Bidders Total Quantity Offered Total Quantity allocated Notified price of total allocated Quantity Bid price of total allocated Quantity % increase over Notified price % increase over Floor price 17403 10525 11.967 million tonnes 10.212 million tonnes 1042.600 crores 1607.966 crores 54.2% 27.9%
7.37. M/s National Cooperative Consumers Federation of India (NCCF), an apex body under Ministry of Consumer Affairs and Public Distribution, which is distributing coal to SSI and tiny units is to be supplied coal by the subsidiary companies of CIL at the floor price( i.e. 20% above the notified price of a particular grade) instead of the weighted average e-marketing price. The State Governments have also been allocated a quantity to the tune of 3 million tonnes per annum to distribute the coal amongst their respective consumers at the price applicable to NCCF.
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58
CHAPTER VIII
ROYALTY
Legal Provisions on Royalty 8.1. Royalty is an amount payable by a lessee to the lessor for removing or consuming a mineral. Section 9 (1) of the Mines and Minerals (Development & Regulation) Act, 1957 requires the holder of a mining lease or his agent, manager, employee, contractor or sublessee to pay royalty in respect of any mineral removed or consumed from the leased area at the rate specified in the Second Schedule of the Act. Section 9(3) of the MMDR Act empowers the Central Government to enhance or reduce the royalty rates in respect of any mineral by notification in the Official Gazette with effect from such date as may be specified in the notification. This revision is done by amending the particular entry of royalty rate for the respective mineral in the Second Schedule of the Act. The proviso to Section 9(3) of the Act prevents the Central Government from enhancing the rate of royalty in respect of any mineral more than once during any period of three years. The Act also does not mandate that royalty on coal should be revised after every three years. Coal royalty rates during 1971-2002 8.2. The coal royalty rates fixed in 1971 ranged from Rs. 1.50 per tonne for low quality coal to Rs. 2 per tonne for high quality coal. The royalty rates on coal were subsequently revised in July, 1975, February, 1981, August, 1991, October, 1994 and August, 2002. A comparative statement of coal royalty rates fixed on 13.02.81, on 01.08.1991, 11.10.1994 and the existing royalty rates fixed on 16.08.2002 is given below :(Rs. per tonne)
Coal Group Coal Royalty Coal Royalty Coal Royalty rates Coal Royalty rates Rates w.e.f. Rates w.e.f. w.e.f. 11.10.1994 w.e.f. 16.8.2002 13.02.1981 01.08.1991 7.00 6.50 150.00 120.00 195.00 135.00 250.00 165.00
Group-I Coking Coal SG-I,II WG-I Group-II Coking Coal WG-II,III Non-coking A,B Semi-coking Gr.-I Semi-coking Gr.-II Group-III Coking Coal WG-IV, Non-coking-C Group-IV Non-coking D,E Group-V Non-coking F,G Group-VI Coal produced in A.P.
5.50
75.00
95.00
115.00
4.50 2.50 5.00
45.00 25.00 70.00
70.00 50.00 75.00
85.00 65.00 90.00
(* the 1981 coal royalty rates are still continuing for the State of West Bengal on the ground that the Government of West Bengal is continuing to levy cesses on coal, which have been withdrawn by other State Governments.)
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Methodology for fixing royalty Rates 8.3. For fixing the rate of royalty on coal/lignite, the Ministry of Coal constitutes a Study Group. The Study Group interacts and takes views of all the stakeholders, viz., the producing states, the consuming states and the consumer sectors like power, iron and steel, cement etc. After taking into account views of all the stakeholders and other relevant factors, the Study Group makes its recommendations to the Ministry. The Ministry after considering the recommendations, moves a proposal for Government decision (CCEA). The consequent decision is then notified and the new rates of royalty come into effect from the date of such notification. The above process is objective, transparent and has served well. Fresh Revision of Royalty Rates 8.4. A new Committee has been constituted on 02.06.2005 to consider revision of rates on royalty on Coal and Lignite. The Committee has sought the views and comments of the States, both through Questionnaires as well as formal interactions. Their interests as well as suggestions would be taken on board by the Committee, while finalizing its report. The Central Government would also take these into account while taking a final view on the matter. The present Committee has members from the Ministry of Coal, Power and Mines. To represent the industrial sector, there are representatives of FICCI and FIMI. The Committee would be at liberty to interact with all the stakeholders as well as expert/specialist agencies, and to benefit from their views/suggestions.
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CHAPTER IX
COAL CONSERVATION, UTILISATION AND RESEARCH & DEVELOPMENT
COAL CONSERVATION 9.1 Conservation of Coal aims maximum recovery of in-situ reserves of coal. The aspect of conservation of coal is taken into account right from the planning stage and maximum recovery is ensured during the implementation stage. 9.2 Mechanised opencast mining is presently the commonly adopted technology for extraction of thick seams at shallow depth. This is also important from the conservation point of view since the percentage recovery by this technology is about 80% to 90%. The dominance of this technology can be understood from the fact that it now contributes more than 80% of total coal production. This trend is likely to continue in the near future also. Further, the thick seams, which were earlier developed by Bord and Pillar method or other methods of underground mining and had been standing on pillars for long in absence of a suitable technology for extraction, have now in many cases become extractable by opencast method of mining with HEMM equipment of suitable type in some mines of WCL, BCCL, CCL and ECL under shallow cover. 9.3 In case of underground mining, the introduction of mechanisation has resulted in increased percentage of extraction thereby leading to better conservation of coal. Replacement of the prevalent manual Bord and Pillar method of mining by semimechanised method of extraction (with SDL/LHD) has improved the percentage of extraction. In underground mining of thick seams where earlier the extraction percentage was very low, new methods of mining with relatively higher recovery such as Blasting Gallery and Cable Bolting have been successfully adopted. 9.4 Continuous miner technology, which has of late been introduced in India, is able to extract 60% to 70% of the coal in a panel depending upon the seam parameters as against 50% to 60% by semi-mechanised Bord and Pillar system of mining with SDL/LHDs. The rate of extraction by the continuous miner being high, it will be possible to create larger panels and thus reduce the coal lost in barrier pillars. Efforts are being made to introduce this technology in a large scale in CIL mines. 9.5 Longwall mining technology yields higher percentage of recovery (70% to 80%) with higher rate of output compared with other methods of underground mining. This method has been implemented in some mines of SECL, ECL and BCCL of Coal India Limited as well as in SCCL. However, due to difficult geo-mining ______________________
61
conditions prevalent in India, large-scale adoption of this technology has not been possible. 9.6 With the improvement in roof support technology as mechanised bolting and resin bolts it has been possible to maintain wider gallery span and extract seams under bad roof conditions more efficiently resulting in improved conservation of coal. SAND STOWING 9.7 Sand stowing in underground mines is yet another effective means of coal conservation, which is widely in use for extraction of coal pillars from underground coal seams lying below built up areas, such as important surface structures, railway lines, rivers, nallahs, jores, etc. which otherwise would have resulted in locking of coal in pillars. Stowing also helps in the extraction of thick seams in several lifts increasing the percentage of extraction. Presently, due to scarcity of sand, various other materials like fly ash, boiler ash, crushed overburden material etc. are also being used for stowing in underground mines as a substitute for sand. RESEARCH & DEVELOPMENT 9.8 Research & Development activities funded by Ministry of Coal under Coal S&T Grant are outlined in the Table below along with the number of projects covering the different areas related to Coal & Lignite Sector. A total of 10 projects were completed during 2004-05 and it is expected that 10 projects will be completed in 2005-06.
Status Production, Productivity & Safety 23 7 Coal Beneficiation & Utilisation 16 1 Environment & Ecology 8 1 Total
i. ii.
iii
Projects on-going as on 1.4.2005 Projects approved from April05 to 31st Dec05 Projects completed till 31st Dec05 Projects on-going as on 31st Dec05 Projects on final stage of completion as on 31st Dec05
47 9
iv. v.
30 -
16 1
10 1
56 2
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Coal S&T Projects Completed during 2004-05 Sl. No. 1. Name of the Projects Study of problems of spontaneous heating of coal pillars and development of techniques for its prevention, detection & control- MT/109 Study on the effect of delay timing, total charge and direction of initiation on blast induced ground vibration MT/123 Design & development of wireless multimedia monitoring system for coal mines- MT/136 Development of pressurised fluidised bed combustion system for high ash Indian coal-CU/37 Development of reconstituted fluidised bed combustion system for high ash Indian coals CU/40 Development of equivalency chart between UHV & GCV- CU/42 (IInd Phase) Pond ash reclamation and possibilities of utilisation of Industrial waste for revegetation and developing green cover- EE/18 Field studies on application of lignite humic acid on various crop response in different agro climatic conditions EE/21 Reclamation of mining wastelands and restoration of native vegetation through microbial technology in Rajmahal Coalfields, ECL EE/24 Characterisation and Leaching studies of Indian fly ashes for evaluation of their suitability as mine fill material- EE/25 Implementing Agency CMRI/ISM/ECL
2.
CMRI/CMPDI/ECL/ NCL/SECL IISc, Bangalore CFRI CFRI CFRI NLC/Anna. Univ.
3. 4. 5. 6. 7.
8.
9.
Tamil Nadu Agricultural Univ. / NLC TM Bhagalpur Univ. / ECL CMRI/BCCL/ SCCL
10.
CONTROL OF MINE FIRES AND SUBSIDENCE- JHARIA COALFIELD 9.9 In the Jharia coalfield at the time of nationalization of coking coal mines in 1972, there were reportedly, 70 active mine fires in about 17 Sq.kms. 22 Fire Projects were taken up from 1975 to 1988 for control of these fires at an estimated outlay of Rs.114.57 crores. 10 fire were extinguished and the remaining fire were by an large kept under control. Eight(8) Schemes for fire and subsidence control were sanctioned in 1997-98 under EMSC Schemes of Ministry of Coal. Six(6) of these schemes have been completed, the remaining two schemes have been completed to a major extent. The capital outlay ______________________
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for these eight (8) schemes was Rs.16.18 Crores. Further 4 RCFS Schemes were sanctioned in August, 2001 by Ministry of Coal for Protection of Railway lines and Chatkari Jores under EMSC/SSRC schemes with approved capital of Rs.25.60 crores in the year 2001. Out of these one has been dropped due to dismantling of the Dhanbad-Patherdih Rly line, one is under revision & other two schemes are under implementation. 9.10 Under IDA credit to the Govt. of India, BCCL received a loan of US $ 12.00 million for developing a long-term plan for carrying out investigation and preparation of recommendation of measures for extinguishing/controlling fires and preparation of Environmental Management Plan (EMP) for Jharia Coalfield. M/s GAI-METCHEM, a joint venture of USA/ Canada was appointed for preparing the FIRE FIGHTING PROGRAMME and M/S NORWEST MINE SERVICES of Canada for preparation of the EMP. The major observations/ findings are given below. I. Fire Fighting Programme : 1. Overall fires have reduced in area from about 17 sq.km. (1986) to 9.0 sq.km. (1996). 2. Dhanbad-Patherdih Railway Line (28 km) is endangered by fires and requires grouting stabilization relocation preferred. Implementation status : A decision has been taken by a committee constituting of members from Railways, State Govt., DGMS, Coal Companies etc. and railways have discontinued operation of trains on the Dhanbad-Patherdih Railway line. The passenger traffic has been diverted through alternative route i.e. via SindriPradhankanta. The RCFS Scheme at North Lodna which was mainly for protection of Dhanbad-Patherdih Rly.line has been discontinued in view of the proposed decision to dismantle the railway line and dig out the fir and coal below railway line and re-lay the track . 3. Adra-Gomoh Railway Line requires protection by isolation trench and water curtain. Implementation status : One RCFS scheme has been sanctioned in August 2001 for protection of Adra-Gomoh railway line at Block-II OCP and Phularitand Colliery at an estimated cost of Rs 5.78 crores. The work is under progress .Expenditure up to Dec-05 is Rs.320.00 lakhs. 4. Ekra Kari and Chatkari Jores are endangered by fires and requires immediate grouting stabilization.
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Implementation status : Two EMSC Schemes, one at Industry Colliery at Kari Jore and one at Joyrampur Colliery for Chakari Jore has already been completed which involves stabilization of jore bed by sand flushing and cement grouting. Further one RCFS scheme has been sanctioned in August 2001 for diversion of Chatkari Jore at Jeenagora-Bararee Colliery which is under implementation. Expenditure upto Dec-05 is Rs.430.00 lakhs. 5. Jharia and Kirkend towns and other built up areas are endangered due to fires and require immediate isolation from fires. Shifting of townships have been recommended as better option. Implementation status : Shifting of most critical houses from the areas affected due to fire and subsidence have been taken up under a demonstration scheme Shifting of people from most endangered areas of BCCL at an estimated cost of Rs.33.88 Crores ( revised to Rs.61.09 Crores.) is under implementation.. 344 BCCL houses have been completed.176 have already shifted to newly constructed houses. The State Govt. is to take action for shifting of non-BCCL persons. The site for shifting of non-BCCL houses has been finalized at Belgoria mauza in consultation with State Govt. JRDA is the implementation agency. Work order for construction of 900 houses have been given & work is in progress in 29 blocks of 12 units each. 6. Some fires may be excavated as part of profitable opencast mining projects such as Block-III, Kusunda, Block-IV and Tisra. Efforts for land acquisition and physical possession through State Govt. is being made for augmenting production in on-going and new mining projects II. PREPARATION OF ENVIRONMENTAL MANAGEMENT PLAN(EMP) OF JHARIA 1. 22300 families are required to be shifted. Implementation Status : As mentioned above action has been initiated to rehabilitate affected families. 2. Predominant air pollution is from road generated dust and vehicle exhaust. 3. Contribution of dust by traffic is about 37% of total pollution load in JCF. Regular ambient air monitoring is being carried out to monitor the level of air pollution.
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4. The coalfield contributes about 15% of the total pollution load in the Damodar River. Implementation status : Recirculation arrangement has been adopted in all washeries of BCCL and practically no effluent is going into the Damodar River from our Washeries. 5. Construction of small reservoirs to the North of the coalfields across the streams is recommended. 6. Continue the existing plantation programme and encourage social forestry. Implementation status: Plantation work in 278 ha. of degraded land has been done at Lodna, Bhowrah, Sijua, Govindpur and Barora Areas.(approx 20,000 saplings in 2005-06 till 30 Sept05 in 8Ha @ 2500/Ha have been planted). The maintenance and protection work is in progress. SUBSIDENCE PROBLEM IN RANIGANJ COALFIELD 9.11 In Raniganj Coalfields, good quality non-cooking coal occurring in thick seams at shallow depth was mined indiscriminately with very small size pillars. In old days, when the surface was not densely populated, the operators had extracted as much coal as possible. With the growing industrial importance of Asansol, various Townships have come up during the last century and further growth is going on, even though, some of the areas fall among those declared unsafe by DGMS. 9.12 Various Committees were formed on subsidence to identify unstable area and suggest remedial measures.Apex Monitoring Committee with Sri H.B.Ghosh, Ex.DGMS and retired CMD,CMPDL, as Chairman and representative of Govt. of West Bengal, DGMS,CMPDIL,ECL,CMRI with local representative etc. was constituted to go into the problem of subsidence of Raniganj coalfields.In June,92, it identified 49 unstable locations and again inSeptember,95, 21 more locations were declared unsafe. More recently, DGMS have indicated 171 unstable locations. 9.13 A High Level Committee with Secretary Coal as Chairman and representative of Central and State Govt. , DGMS, Planning Commission,ECL, BCCL & CMPDIL members was constituted on 19.12.96 to look into the problem of subsidence and fire in Raniganj & Jharia coalfields. The Committee suggested that Master Plan be prepared to tackle the problem of subsidence and fire.
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9.14 On suggestion of High Level Committee, CMPDIL was entrusted with the job to prepare a Master Plan for Raniganj Coalfields. In its report submitted in February,99, It has identified the following:1) 59 locations for stabilization. 2) 80 locations for rehabilitation which have been further categorized as priority 1 and priority 2. 3) 7 Location consisting of Railway line and road have been considered for diversion and 4) 7 fire areas have been considered for bio-reclamation. An action plan for Shifting and Rehabilitation of people from unsafe areas, dealing with fires and stabilising unstable areas in the command area of ECL has been drawn up.The Action Plan includes the actvities within a time frame along with responsibilities. A Monitoring Committee under the Chairmanship of Secretary (Coal), along with representatives from State Govt., CIL, ECL and related ministries / departments of Central Govt. has been constituted. CMPDI, Asansol was entrusted with the job of updating the Master Plan. CMPDI identified : ECL 1) 2) 3) 4) 43 locations for stabilization. 92 locations for rehabilitation 7 Location consisting of Railway line and road have been considered for diversion and 8 fire areas have been considered for bio-reclamation.
BCCL 1) 2) 3) 121 locations for stabilization. 532 locations for Rehabilitation 66 locations for fire control.
HIGH LEVEL COMMITTEE 9.15: A High Level Committee was constituted with Secretary Coal as Chairman to go into the problem of subsidence and fire in Raniganj and Jharia Coalfield to suggest mitigative measures. The Committee submitted its report in January, 1998. The recommendations of the Committee were accepted by the Govt. of India and the implementation status of the recommendation is given below : Recommendation of High Level Committee
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Recommendation No. I : Wherever possible settlements of all unstable areas should be shifted to non-coal bearing zones. For this purpose, satellite townships are the best long term solution against subsidence hazards in the coalfields. Implementation Status: That BCCL is constructing new colonies on non-coal bearing land and process of shifting its employees is going on. The no of houses in townships over non-coal bearing areas, where employees have been shifted are around 14442. In ECL a Scheme was prepared by CMPDIL for rehabilitation of four unstable locations at Samdih, Bangalpara ( Refugee basti), Kenda and Harishpur village. The Scheme has been approved by Govt. of India under EMSC Scheme of Ministry of Coal in May,97 with a capital of Rs.32.52 crores. The work is progressing. Demographic survey completed. Recommendation No. II : There should be total ban on any new construction over declared unsafe areas in the coalfields. Government of Bihar should also enact suitable legislation inline with the one already existing in West Bengal preventing construction over unsafe areas. Implementation status. BCCL has put a total ban of construction of any new houses/Colony/quarter over unsafe areas. Mining Area Development Authority(MADA) constituted by Govt. of Bihar issued notification dated 30.6.97 banning any new construction over critically endangered areas in BCCL. Jharkhand Vidhan sabha has passed a legistation banning construction over unsafe areas. In ECL the suitable legislation as contemplated by the High Level Committee is already existing in the State of West Bengal under the West Bengal Restriction on Construction in Unsafe Areas Act 1979. Recommendation No. III: For tackling the problems of fire and subsidence both in JCF and RCF, the participation and assistance from State Government and local administration is essential. Any enforcing agency entrusted with the responsibilities of carrying out mitigating measures against fire and subsidence in RCF and JCF should be adequately represented by the above authorities. ______________________
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Implementation status. A High Level Committee has been constituted by the State of Jharkhand vide notification dated 2.8.2001 which is chaired by Minister of Mines and Geology, Govt. of Jharkhand and includes representatives from other State Govt. Officials and also from DGMS, BCCL & CMPDIL. The said committee has been constituted to look into the problems of rehabilitation of people affected by fire and subsidence in Jharia Coalfield. Since then, a series of meetings have been held with the State Govt. to sort out the different problems related to shifting of people from the affected areas. A fresh survey of the affected areas was done in Nov-Dec, 2001 for identification of exact number of persons living in the affected areas as per the list of the locations in the demonstration scheme.. An Action Plan has been prepared by RI-II, CMPDI in July-03 which envisages shifting of 65300 houses consisting of houses belonging to BCCL employees , nonBCCL encroachers and private authorized houses from unstable/ endangered areas of BCCL. The total duration of shifting is planned to be 20 years in 4 phases of 5 years each. . In ECL a Core Committee has been constituted consisting of CMD,ECL , District Magistrate,Burdwan and Director, Commerce Industries Department, Govt. of West Ben gal. In addition to the said committee, a core group has also been constituted consisting of representatives of ECL,CMPDIL, Regional Institute, Asansol and local administration. The said agencies are assisting ECL to effectively implement various rehabilitation schemes as approved by Central Government. Recommendation No. IV: The mitigation measures against subsidence and fire hazards are very costly options and fruitful implementation of these measures can only be possible through separate executing agency with separate funding. Formation and representatives of such agencies responsible for formulating schemes, their implementation and management of funds should be finalized at the earliest. A broad outline of executing agencies has been evolved in consultation with the concerned State Govt. and the Govt. Companies. Implementation status. That BCCL had constituted one Executing Committee in June, 1998 for rehabilitation of its employees with members from Director General Mines Safety, CMPDIL and Central Mining Research Institute for formulation and implementation of schemes 69 ______________________
for mitigation measures against fire and subsidence. As per the demonstration scheme BCCL has taken up construction of 344 houses for BCCL employees all of which have been completed and 176 families have already shifted. JRDA has issued work order for construction of 900 non-BCCL houses and work is in progress. ECL has constituted a Core Committee and a Core Group for implementation a rehabilitation scheme. Formulation of schemes and their regular monitoring for mitigation against subsidence and fire by sand filling and afforestation in the fire area is being done by CMPDIL for which sufficient funds have been allocated. Recommendation No. V: The introduction of hydro-pneumatic stowing technology currently being used at some locations in RCF has been found to be very slow process. High pressure slurry pumping technology for underground void filling should be tried at some locations in BCCL for stabilizing inaccessible unstable underground workings. Implementation status. A R&D scheme for High Capacity Sand Flushing at Madhuband Colliery in BCCL has been sanctioned by Coal India Limited to establish the technology of high pressure sand stowing at Madhuband Colliery which has been established . Further trials are being conducted for research in the other parameters of high capacity sand flushing. Besides this, another scheme for High Concentration Fly Ash Slurry Stowing has been sanctioned by CIL for undertaking research for establishing this new technology of high concentration fly ash stowing in the mines of BCCL. This scheme has been taken up and is now under tendering process.
In ECL, After the laboratory trials at IIT,Khargapur,CMPDIL has prepared a trial report on stabilization of old abandoned underground voids by slurry pumping technology. This report is under examination at ECL Hqtrs. Recommendation No. VI: Intensive stabilization work of unstable areas under locations, like Raniganj town from where population cannot be shifted, should be carried out and persons affected in the high risk but low density areas may be relocated in a phased manner. ______________________
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Implementation status. Stabilisation work at the following sites of ECL has been completed. 1. Borachak (EMSC-02) 2. Fatepur Phase I &II (EMSC-01) 3. Haripur Ph.I (EMSC-26) 4. Gowalabasti Phase-I(EMSC-26) 5. Arun Talkies (Under CCDAC assistance) 6. Kumar Bazar ( Under CCDAC assistance) 7. Porabandh 8. Bhutdoba Stabilisation work at following sites of ECL are in progress. 1) Fatepur Ph.III (EMSC-01) 2) Haripur- Ph.II (EMSC-26) Unspent money of Ph.I will be utilized for additional quantity of sand filling. 3) Palasban EMSC(15) 4) Gowalabasti (EMSC-16) 5) Pottary EMSC(18) 6) Sanctoria EMSC(29) Schemes are being implemented as per the priorities fixed in the Master Plan for Raniganj Coalfield. Recommendation No VII: The mitigation measures against subsidence and fire hazards are very costly options arranging fund for the purpose of stabilization of the subsidence prone areas and resettlement of affected people, the money could be made available either through planned expenditure may be approved by Planning Commission or unplanned expenditure from Coal Conservation and Development Act Fund after making suitable enhancement. Implementation status. That the Central Government has already sanctioned Rs.33.88 crores which has been revised to Rs.61.09 crores as a Demonstration Scheme for rehabilitation of 4600 houses out of which 1500 are to be occupied by BCCL employees and 3100 are ______________________
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to be occupied by non BCCL persons/encroachers which are situated in most endangered area. For 8 schemes for fire and subsidence control an amount of Rs.16.18 crores has been sanctioned by Central Government out of which 6 schemes have been completed . Further, 4 new schemes for protection of railway lines and stabilisation of Chatkari Jore have been sanctioned under RCFS scheme at an estimated outlay of Rs.25.60 Crores which is under implementation. Out of these 4 schemes, two schemes for protection of Dhanbad-Patherdih railway line has been discontinued and one of them is in under modification in view of the proposed decision for dismantling of the railway line. In ECL, Funds for Arun Talkies and Kumar Bazar were provided from CCDAC funds. For other sites, funds are provided by Ministry of Coal under EMSC Schemes. Recommendation No. VIII: Considering the urgency one scheme each by ECL and BCCL for shifting of the population from the unsafe areas may be taken up without waiting for the positioning of the institutional arrangement from planned funds available with the Ministry of Coal. Implementation status. One demonstration scheme for BCCL has been approved by the Govt. at an estimated cost of Rs.33.88 crores which has been revised to Rs.61.09 crores. Expenditure incurred is Rs26.42 crores till date. One such scheme for ECL was prepared by CMPDIL for rehabilitation of four unstable villages, namely , Samdih,Refugee Basti, Kenda and Harishpur village. This scheme was approved by Govt. of India, Ministry of Coal, at a total cost of Rs.32.52 crores in May,98. Expenditure incurred is Rs.15.50 lakhs. Recommendation No. IX: The Interim Report submitted by BCCL and ECL jointly with State authorities on the fire and subsidence prone areas indicating likely affected population and financial implications should be kept in view while drawing up priority wise schemes for immediate and effective way to deal with the problems.
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Implementation status. The new schemes/ projects which are being sanctioned are prepared keeping in view the Interim Report and the Master Plan prepared by CMPDIL which is also based on the High Level Committee report. 9.16. (a) Schemes under the head Environmental Measures and Subsidence Control (EMSC)
Eight schemes for fire and subsidence control with a capital outlay of Rs.16.18 crores has been sanctioned by Ministry of Coal. Out of these 8 schemes, 6 schemes have been completed and other 2 schemes are under implementation. The details of the schemes are as follows : (Rs. lakh)
S.N. A. 1. 2. 3. 4 B. 5. 6. 7. 8. Name of Scheme Stabilisation Schemes Stabilisation below Jharia Water Board Tank at East Bhagatdih Colliery Stabilisation below Chatkari Jore at Joyrampur Colliery Stabilisation of Kari Jore at Kusunda/Industry Boundary Stabilisation below Kusunda Yard at K Kusunda Fire Control Schemes Dealing with fire at Alkusa Colliery Dealing with fire at Rajapur Colliery Dealing with fire at S.Lodna Colliery Dealing with fire at Industry Colliery Total 368.39 471.87 333.72 253.3 1618.495 255.10 377.00 273.03 130.00 1204.873 Completed. Under implementation Completed Under implementation 88.695 47.46 5.43 49.63 81.696 30.67 4.427 52.95 Completed Completed Completed Completed Sanc. cost Cumm Expn.Upto 31.12.05 Status
Further, 4 schemes for Protection of Railway lines and diversion of Chatkari Jore had been sanctioned under RCFS Schemes at an estimated outlay of Rs.25.60 crores. These schemes are under implementation. The details of the schemes are as follows :
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S.N. 1
Project
Approv. Sanc.cost Cumm Exps Date (Rs.Lakh) Upto Dec-05 577.27 130.00
Status Scheme has been discontinued since Aug.-03. In view of the proposed decision taken for dismantling the DhanbadPatherdih rly.line. -Scheme is under modification
Scheme for dealing with fire Aug.01 for protection of DhanbadPatherdih Rly. Line at Bararee Colliery
Scheme for dealing with fire Aug.01 for protection of DhanbadPatherdih Rly. Line at Lodna-Bagdigi Collieries Scheme for dealing with fire Aug.01 for protection of AdraGomoh Rly. Line at BlockII-Phularitand Collieries Scheme for dealing with fire Aug.01 for protection of Chatkari Jore at Jeenagora-Bararee Collieries. Total
635.23
144.00
578.40
320.00
Under implementation
769.82
430.00
-do-
2560.72
1024.00
For reclamation of abandoned coal mines in ECL , 854.27Hac. degraded area of OB dumps, open cast voids and fire areas have been completed by 31.12.03 by social forestry division of Govt. of West Bengal and Jharkhand out of targetted area of 891 Hac. (b) Subsidence Control : The details of the completed schemes are given below :
Sl. No. 1. Name of the Scheme Generation of data and identification of subsidence prone areas in BCCL (EMSC Code No.7) Technological measures for Control of Subsidence where feasible in the leasehold of BCCL (EMSC Code No.8) Stabilisation below Kusunda Yard at Khas Kusunda (Code No.EMSC 10) Stabilisation of Kari Jore at Kusunda/ Industry Boundary (Code no. EMSC 11) Stabilisation below Jharia Water Board Tank at East Bhagatdih Colliry (Code No.EMSC 1 4) Stabilisation below Chatkari Jore at Joyrampur (Code No.EMSC 12) 74 Approved cost (Rs Croses) 0.26 Remarks Completed.
2.
0.48
Completed
3. 4. 5. 6.
0.50 0.05 0.89 0.47
Completed Completed Completed Completed
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10 11 12 13
Generation of data and identification of subsidence prone area in ECL(Code No.EMSC 5) Technological measures for control of Subsidence where feasible in the leasehold of ECL (Code No.EMSC 6) Stabilisation of inaccessible waterlogged voids beneath Borachak Village. (Code No.EMSC 02) Stabilisation below Haripur Village Phase 1(Code No.EMSC 26) Stabilisation below Gowalabasti- Phase-I (Code No.EMSC 16) Stabilisation of inaccessible voids beneath Porbandh (Code No.EMSC 17) Stabilisation of inaccessible voids beneath Bhutdoba (Code No.EMSC 19)
0.26
Completed
0.47
Completed
4.69
Completed Phase-1 Completed .
1.88 1.88 1.88 1.88
Phase-1 Completed Completed Completed
Ongoing schemes:(i) P&M required for hydro-pneumatic stowing at all the approved sites is available. Stowing is continuing at Gowala Basti, Pottary, Haripur, Palasban and Sanctoria sites. Due to underground workings being on fire, hydro-pneumatic stowing at Sanctoria village has been replaced with hydraulic stowing only and sand filling is in progress
(ii)
(iii) Hydro-pneumatic stowing at Borachak , Porarbandh and Bhutdoba has been completed. (iv) Haripur (Ph.I) scheme has also been completed. There is still a part of Haripur village on unstable ground, which was not covered for stabilization under Ph.I scheme. Phase I scheme has been completed with Rs 1.20 crores expenditure and there is still Rs.0.68 crores unspent money. Additional 15,000 cum of sand will be stowed with this 0.68 crores of unspent money. The stowing is in progress. v) Fatepur stabilization scheme was approved for 90,000 cum of sand filling. The work was taken up in Phase I and Phase II for 20,000 cum of sand stowing in each phase. Phase II was completed in March,02 and total sand stowing under Phase I & Phase II is 40,876 cum. After the completion of Phase II, CMPDI,RI1 was requested to assess the further requirement of sand to be filled to complete the stabilization of Fatepur village. As per the present assessment of CMPDI, total quantity of sand to be filled for stabilization of Fatepur village is 60,000 cum. Balance work in progress.. Gowalabasti Phase-I scheme for 20000m3 sand filling has been completed. There is still a part of Gowalabasti village on unstable ground, which was not
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vi)
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covered for stabilisation under Phase-I scheme. Ph-I scheme has been completed with Rs.0.85 crores expenditure and there is still Rs.1.03 crores unspent money. Additional 26000m3 of sand will be stowed with this unspent money. The stowing is in progress. vii) Sand stowing done till 31.12.05 as per scheme is as under :Sl.No Localities EMSC Sand Stowing in cum Sand Stowing done in as per scheme (m3) cum as per scheme till 31.12..2005 60000 (Revised) 48481 20000 2654 20000 38467 20000 25021 20000 30074 40000 23687
1 2 3 4 5 6
Fatehpur Palasban Ph-I Gowalabasti Ph-I Pottary Ph-I Haripur Ph-I Sanctoria Ph-I
01 15 16 18 26 29
(c) Social Mitigation Projects One Social Mitigation Project in BCCL has been sanctioned for rehabilitating the people living in the endangered areas. The details of the scheme is as follows : Sl.No. Name of the Scheme 1. Shifting of people from endangered areas of BCCL Sanctioned capital (Rs.crores) most 33.88 (This scheme has been revised to Rs.61.09 crores)
Progress in BCCL Scheme for shifting of people from most endangered areas of Bharat Coking Coal limited (EMSC-24) (i) This scheme envisages 4600 houses ( 1500 for BCCL employees and 3100 for non-BCCL). Construction of 344 houses for BCCL employees have been completed. JRDA has taken up construction of non-BCCL houses. Work order for construction of 900 non BCCL houses has been issued. Construction work is in progress.
(ii)
The Master Plan prepared by CMPDI in March 1999 for dealing with Fire, Subsidence and Rehabilitation in the Leasehold of BCCL and ECL has been updated and approved by BCCL / ECL and finally by CIL Board on 19.7.04. The said master plans are under process of approval at Ministry of Coal. The updated Master Plan of BCCL contains details of year wise activities and capital outlay for each five years phasing for a period of 15 years for fire projects and 20 76 ______________________
years for rehabilitation and subsidence control work for a total capital outlay of Rs.5792.21 Crores and covers the following: i) Dealing with Fire for control of 66 fires at an estimated capital of Rs. 2957.82 Crores for 15 years period, Stabilisation of 121 sites which are unstable but controllable at an estimated outlay of Rs. 387.48 Crores for 20 years period. Rehabilitation of 65300 ( BCCL-36208, Private-15571, Unauthorised-12719 and others-802) houses from critically unstable and uncontrollable 532 sites at an estimated outlay of Rs. 2446.91 Crores for 20 years period.
ii)
iii)
One Social mitigation scheme for ECL was prepared by CMPDIL for rehabilitation of four unstable villages namely Samdih, refugee Basti, Kenda and Harishpur village. This scheme was approved by Govt. of India, Ministry of Coal. Details of the scheme is as follows: Sl. No 1 Name of Scheme Rehabilitation of four unstable localities in ECL Sanctioned Capital Rs. 32.52 crores
Progress in ECL i) The summarized present status of implementation as on 31.12.05 of the approved scheme for rehabilitation of four identified unstable locations is as follows:Name of Constitution of Videogra Unstable Village phy of the Locality committee(V.C) affected sites Samdih Yes Yes Refugee Yes Yes Basti (Bangal Para) Kenda Yes Yes Village Harispur Yes Yes village Proposed alternative site for rehabilitation Borapathbora Beldanga Demography Survey
Sl.No
1 2
Completed Completed
3 4
Chakdola Mangalpur under consideration
Completed Completed
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The Updated Master Plan of ECL covers the following: i) ii) iii) iv) 43 locations identified for stabilisation at an estimated capital of Rs. 411.84 crores 92 locations considered for resettlement at an estimated capital of Rs. 1317.18 crores. 7 locations consisting roads & railway need diversion at an estimated capital of Rs. 7.15 crores. 8 fire areas considered for bio-reclamation at an estimated capital of Rs. 33.22 crores.
----- x ----- x ----- x -----
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CHAPTER X
PERSONNEL AND INDUSTRIAL RELATIONS
MANPOWER Human Resources Development is a key management function and occupies an important place in the organization. Its employees have formulated the personnel policies of the organization to ensure positive contribution. 10.2 The phenomenal growth of the organization from a Production level of 75 M.T. in the year 1974-75, at the time of Nationalization of Coal Industry to a production of 321.55 MT achieved in the year 2004-05 bears testimony to this fact. 10.3 Rationalizations of manpower has been identified as a major thrust area by the Management. Effective methods such as redeployment/ transfer of employees against the vacancies created due to natural wastage, strict control on fresh recruitment and retirement through VRS was taken up. Due to the above measures, there has been large reduction of overall manpower from a level of 6.70 lakhs to 4.57 lakhs as mentioned below: Year as on 1st April of 1985 1995 2000 2001 2002 2003 2004 2005 As on 31-12-2005 Total manpower deployed. 6,70,739 6,41,093 5,62,071 5,42,051 5,19,922 5,01.419 4,84,703 4,68,450 4,57,108
10.4 The total manpower of CIL and its subsidiaries as on 31.03.2004 was 4,84,703, and as on 31.03.05 was 4,68,450 and stands 4,57,108 as on 31.12.2005 Company-wise break-up of the deployment is given below :-
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STATUS OF MANPOWER OF CIL & SUBSIDIARIES

Company 2000-01 as on 31.3.01 1,27,452 1,13,738 77,882 77,866 95,581 22,587 17,166 4,099 3,600 674 1,406 5,42,051 2001-02 as on 31.3.02 1,19,723 1,08,043 74,887 75,005 93,397 22,216 17,212 3,930 3,485 676 1,348 5,19,922 2002-03 as on 31.3.03 1,14,582 1.02,414 72,401 72,501 91,390 21,661 17,278 3,779 3,436 671 1,306 5,01,419 2003-04 as on 31.3.04 1,10,132 97,110 69,799 70,515 89,503 21,506 17,292 3,581 3,366 653 1,246 4,84,703 2004-05 as on 31.03.05 1,05,692 92,268 66,871 68,938 87,590 21,288 17,174 3,489 3,290 647 1,203 4,68,450 2005-06 as on 31.12.05 1,02,745 88,901 64,958 67,733 86,270 21,016 17,020 3,405 3,245 644 1,171 4,57,108
ECL BCCL CCL WCL SECL MCL NCL NEC CMPDI DCC CIL(H) TOTAL
10.5 As on 31.1.2006, SCCL ( a joint venture of the Union Government and the State Government of Andhra Pradesh ) has employees on its rolls, as per the following break-up:
S. NO. I A 1 2 3 4 5 6 B 1 2 3 4 5 6 II 1 2 III 1 2 3 CATEGORY DAILY RATED NON-EXCAVATION CATEGORY-I CATEGORY-II CATEGORY-III CATEGORY-IV CATEGORY-V CATEGORY-VI EXCAVATION SPECIAL GRADE GRADE-XA GRADE-XB GRADE-XC GRADE-XD GRADE-XE MONTHLY RATED EXECUTIVES NON-EXECUTIVES PIECE RATED REGULAR FILLERS BADLI FILLERS STIPEND TOTAL
80
MEN-ON-ROLL AS ON 31.1.2006
4919 9192 6288 4805 6764 8092 427 813 940 1006 318 240 2446 18487 17574 3956 4 86271
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10.6 The Voluntary Retirement Scheme introduced by CIL has been in operation since 1988-89. It has received over whelming response from the employees. The total No. of employees retired under the existing VR Scheme is given below: Year 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 (up to 31.12.05) Total No. of Employees taken VRS 1182 1661 900 1587 6232 5455 9967 1538 1905 4912 10245 11634 7854 10539 6573 5947 4192 1684
The companies are trying to identify the surplus manpower in order to rationalize the strength, and meet the skill requirement. 10.7 The amount released by Ministry of Coal on account of VRS funds for ECL/BCCL and CCL during 1997-98 to 2004-05 are as under: Amount Sanctioned (Rs.Crores) Rs.40.00 Rs.40.00 Rs.80.00 Rs.80.00 Rs.85.00 Rs.80.00 Rs.70.00 Rs.70.00 Rs.40.00 Rs.108.46 Rs.108.46 Rs.65.62
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Year 1997-98 1998-99 1999-00 2000-01
Company ECL BCCL ECL BCCL ECL BCCL ECL BCCL CCL ECL BCCL CCL
2001-02
Amount Nos. to whom Spent paid. (Rs.Crores) Rs.25.00 1472 Rs.50.33 3327 Rs.82.00 4323 Rs.68.23 3499 Rs.91.37 4450 Rs.67.15 3253 Rs.60.33 2653 Rs.50.59 2270 Rs.29.11 1283 Rs.92.93 3604 Rs.64.32 2533 Rs.35.14 1383
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2002-03
2003-04
2004-05 ( Loan)**
ECL BCCL CCL ECL BCCL CCL ECL BCCL CCL
Rs.43.00 Rs.42.00 Rs.22.02 Rs.53.00 Rs.53.00 Rs.32.44 26.16 69.93 7.41
Rs.69.61 Rs.70.44 Rs.32.46 Rs.31.40 Rs.51.03 Rs.38.34 Rs.56.30 Rs.64.74 Rs.37.36
2512 2579 1082 938 1734 1148 1407 1620 983
** For year 2004-05 funds was released as soft loan to CIL for VRS, which in preceding years was released as grant from Government. 10.8 From the year 1999-00 the PSUs under the Ministry of Coal were de-linked from release of grant in aid from National Renewal Fund and budgetary provision for VRS were sanctioned from the Annual Budget of this Ministry. During the financial year i.e. 2003-04 no fund was released by the Ministry of Coal. In the financial year 2004-05 Rs.103.50 Crores has been sanctioned. However, this grant, released as soft loan, has since been returned by CIL along with interest on 18.11.05. CRITICAL AREAS : 10.9 While on the one hand the Management has been rationalizing the manpower, it has the difficult task of accommodating the new appointees who are joining the coal companies under the land losers scheme as also through the scheme of compassionate employment. 10.10 Each year the subsidiaries of CIL induct about 4000 persons through these schemes. The majority of the new appointees are untrained and unskilled, which includes widows of employees dying in harness. This has given rise to a serious mismatch between the skills required and persons available. 10.11 The problem is further aggravated due to the exit of skilled persons on superannuation/retirement. In order to deal with this problem, a scheme is being formulated under which the new appointees would be initially taken as trainees. They would be imparted training on the ITI pattern for period of 2/3 years. This would help in building up a sound technical pool of employees.
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CORPORATE HRD PLAN

10.12 A strategic HRD Plan for the period 2001-06 has been prepared by Coal India on the basis of review of HRD performance during the last five years and also keeping in view the existing global business scenario. The major thrust areas of the HRD Plan ! ! ! ! Quality improvement Cost reduction Faster delivery / off take Information sharing among various departments within the organizations (inter-departments and intra-departments)
10.13 The Annual Plan was worked out to integrate the efforts of HRD in all the training centers, located in different subsidiaries. The strategy was to utilize available in-house training infrastructure as well as meeting the needs with the help of existing training capabilities. TRAINING STRATEGIES 10.14 The HRD strategies focused on the following areas :a) b) c) To facilitate availability of skilled manpower through planned development of existing employees. To conduct basic and refresher training for operators and maintenance personnel with reference to HEMM equipment, used in Coal Production. To prepare employees for acquiring statutory qualification through intensive coaching as well as grooming eligible employees for departmental examination aimed at career growth. To conduct general development programmes for workmen and supervisors for integrating them with the state-of-art Technology as well as enterprise. To train Management Trainees, through a standard scheme. To develop senior executives from M-1 to M-3 level through centralized inhouse programmes organised at IICM, a Apex training Institute at Ranchi. To develop senior executives through nomination to courses organized by reputed institutions and professional bodies in India and facilitate interorganizational exposure to assimilate development in the areas of technology and management science.
d) e) f) g)
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h)
To develop employees through training opportunities abroad available from foreign Government, manufactures and international seminars and courses and to help & enhance managerial and technical competence of employees working in strategic positions.
10.15. The number of employees trained during 2005-06 (April 2005- December, 2005) in Coal India Limited is given below: CATEGORY Abroad Executives Supervisors Workers TOTAL 39 3 Nil 42 EMPLOYEE TRAINED Outside the company 1264 170 131 1565 In-house 4275 6110 10101 20486 Total 5578 6283 10232 22093
Training Programme in SCCL I. Statutory training programme in SCCL Statutory training in Mines Vocational Training Centers (MVTCs) as per VTC Rules,1966. DETAILS OF TRAINING Basic Trg. for Workmen Refresher training to Supervisors and Workmen Change of Job training Spl. Training for attending the Statutory Examinations NO.OF PERSONS TRAINED DURING 2005-06 468 11046 3383 236
Training to Opencast Personnel viz. executives, supervisors , Operators and Technicians is being given at Technical Training Center (TTC) Manuguru and the details of programmes conducted during 2004-05 are given below:-
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Sl. No 1
Details of Training
No. of Persons trained
Refresher Training (Statutory) i) EP Operator Trainees (Electricians) ii) EP Fitter Trainees iii) EP Welder Trainees Hydraulic excavators iv) Dumper Operators - 85 t - 35 t v) Drill Operators vi) Shovel Operators vii) Dozer Operators viii) Shovel Operators ix) Cablemen (Operators) x) Vehicle Drivers & others Fresher Training: Hands on training for JETs /MGTs / AFMs. EP Operators Electricians Fitters Orientation Training 85 T Dumpers Operators 10 Cu.m. Rope shovel operators Dozer Operators Change of Job training for Dumper Operators Special Training Programmes: Basic Fire Fighting
04 31 06 15 64 5 2 9 2 172 -99 15 39 113 08 25 145 245
4 5
II.
NON-STATUTORY TRAINING PROGRAMMES:
Number of executives sponsored for the In-house Programmes within India programmes and foreign programmes during 2005-06 is given below:
SL.NO 1 NAME OF THE PROGRAMME IN-HOUSE PROGRAMMES A) Executives B) non-executives Equipment suppliers, programmes on various HEMM for Executives, EP Operators and Tradesmen Within India Programmes a) Executives b) Non-Executives Foreign Training Programmes for Executives 85 NO. OF PROGRAMMES 62 19 NO. OF PERSONS ATTENDED 1455 384 Executive-328 Non-Exe-283
19
160 41 10
655 635 19
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WAGES IN COAL SECTOR

10.16. Since inception, wage structure and other conditions of service including fringe benefits, welfare measures etc. of the non-executive cadre employees in the Coal Industry have been settled by Bipartite Wage Negotiations by a committee constituted by Govt. of India. The committee is functioning in the name of Joint Bipartite Committee for the Coal Industry consisting of representatives of 5 Central Trade Unions and the management of Coal Companies i.e. CIL & its subsidiary companies, Singarani Collieries Co. Ltd., Tata Iron and Steel Company and Indian Iron & Steel Company from NCWA-I to NCWA-VI. However, in NCWA-VII TISCO, IISCO and other Private Coal Companies declined to participate. Seven National Coal Wage Agreements have so far been signed as detailed in the table below:National Coal Wage Agreement (NCWA) NCWA-I NCWA-II NCWA-III NCWA-IV NCWA-V NCWA-VI NCWA-VII Signed on Period of Agreement From 1.1.1975 1.1.1979 1.1.1983 1.1.1987 1.7.1991 1.7.1996 1.7.2000 To 31.12.1978 31.12.1982 31.12.1986 30.06.1991 30.06.1996 30.06.2001 30.06.2005 Duration period of Agreement 4 Years 4 Years 4 Years 4&1/2Years 5 Years 5 Years 5 Years
11.12.1974 11.08.1979 11.11.1983 27.07.1989 19.01.1996 23.12.2000 15.07.2005
JBCCI-VII was constituted on 28.07.2004 and NCWA-VII was signed on 15.07.2005 after a series of meetings held during the period between 12.01.04 and 15.07.2005. 1. The Salient features of NCWA-VII are as follows: a) b) The agreement has come into force w.e.f. 1.7.2001. Minimum WagesRevised as on 15.07.2005 Basic Pay Attendance Bonus S.D.A V.D.A Total
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Pre revised as on 30.06.2001 Basic Pay Attendance Bonus S.D.A V.D.A Total Rs. 2300.00 Rs. 330.00 Rs. 59.23 Rs. 1330.00 Rs. 5019.23
Rs. 5550.00 Rs. 555.00 Rs. 99. 62 Rs. NIL Rs. 6204.82
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Increase in new revised Basic Pay @ 68.18% of pre-revised Basic pay. c) Minimum Guaranteed Benefit: 15% of Basic pay as on 30.6.2001 plus Rs. 500/- or Rs. 1185. 39 per month whichever is higher. d) Neutralization of V.D.A @ 100% according to the shift of Consumer Price Index Number over 2191. Underground Allowance @ 10% of Basic Pay upto Rs. 9000/- per month and 12.5% of Basic pay of Rs. 9001/- and above w.e.f 1.7.2004 In case of Assam Coalfields UG allowance has been fixed @ 12.5% of Basic Pay upto Rs. 9000/- per month and 15% of Basic pay of Rs. 9001/- and above w.e.f 1.7.2004. e) Other Allowances Pre-revised Revised w.e.f 1.7.2004 Rs. 50.00 Rs. 60.00 Rs. 100.00 Rs.7.00 Rs.10.00 Rs. 2.90 Rs. 5.80 Rs. 15.00 120 days 100 days Rs. 40,000 Rs 30,000
Washing Allowance Washing allowance for Nursing Staff House Rent Allowance Transport Subsidy (per day) Addl. Transport Subsidy (per day) Traveling over steep gradient (per day) Where such traveling exceeds 2000mtrs. (per day) Conveyance reimbursement (per day) Accumulation of annual leave with wages Accumulation of sick leave Life cover scheme Exgratia in case of death/permanent total disa resulting on account of accident in course of employment. Encashment of earned leave
Rs.40.00 Rs.50.00 Rs. 75.00 Rs. 5.00 Rs. 7.00 Rs. 1.90 Rs. 3.80 Rs. 12.00 100 days 90 days Rs. 30,000 Rs 25,000
5 days per year
Encashment of earned leave at the time of 100 days retirement ______________________

15 days per year 120 days
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INDUSTRIAL RELATIONS: 10.17 The Industrial relation scenario in Coal India Ltd., and its subsidiary companies during the year remained cordial. Regular structured meetings have been held with the recognized Trade Unions at different levels. 10.18. STRIKES AND BANDHS Table A
2001-02 No. of strikes Mandays Lost Production Lost (in tonnes) 22 748683 1700835 2002-03 20 313925 734437 2003-04 12 255706 414327 2004-05 10+1* 70172 324444 +45 Mtg.** 2005-06 (31.12.05) 5 +1* 161810 190464
* Industrial Strike ** Meterage Industrial Relations in SCCL 10.19. The Industrial Relations scenario in SCCL for the financial year 2005-06 (upto December, 2005) continued to be satisfactory. However, 8 strikes have taken place during this period. 10.20 The industrial relations scenario in SCCL had been plagued by a number of catcall/illegal strikes. The name of Singareni had become synonymous with strikes. 10.21 The problems have been compounded because of multiplicity of unions and inter union rivalry leading to enormous loss of production to the Company and wages to the workmen effected by the illegal strikes. There has been mushrooming of trade unions in the company, the number going upto as high as 77 by May, 1998 (which figure has gone upto 93 by Feb. 2001, out of which 65 are craft unions/associations). 10.22 The Management has laid down clear Industrial Relations Policy through Office Memorandum dt. 05.10.1998 providing for mechanism to discuss the issues with Recognised Union at Company level and Area level and with Representative Status Unions at Area level. Verification of the strength of the unions functioning in the Company will be done through secret ballot once in 2 years by the appropriate authority. Only one union will be recognised at Company level. ______________________
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There will be one Representative union in each Area. The recognition/representative status is for 2 years. The Union recognised at Company level may represent and discuss any issue on behalf of the workers either at Company level or Area level. The Representative Union for an Area can represent the issues pertaining exclusively to that area. Any indulgence in or any encouragement of violence, intimidatory tactics, illegal strikes or violation of Code of Discipline shall render the recognised/representative Unions liable to forfeit the status of 'recognition'. 8. All the above measures contributed for reduction in number of strikes, as can be seen from the following details: Sl. No. 1 2 3 4 5 Year 2001-02 2002-03 2003-04 2004-05 2005-06 (up to December 2005) No.of Strikes 54 35 15 14 08 Man days Lost 13,33,051 16,30,798 1,02,942 91,818 2,15,119 Production lost 12,54,813 6,47,426 1,21,647 57,499 99,799
10.23 Elections to the Trade Unions operating in SCCL through secret ballot were held for the 3rd time on 14.05.2003 in which the SCML Union (INTUC), which polled highest no. of votes i.e. 30,291 (39.77%) emerged as company-wide recognised Union and 04 other unions have emerged as Representative status unions as under:S C Workers Union(AITUC) S C Labour Union(TNTUC) S C Mine Workers Union S M & E W Union(HMS) Kothagudem and Yellandu Areas. Corporate & Bellampalli Areas. Ramagundam-II Area. Ramagundam-III Area
10.24 The management of SCCL has taken up the following steps for betterment of employer-employee relationship so as to continue harmonious and cordial industrial relations in SCCL:! Sea change has been brought in the attitude of workmen. Transparency in Management is maintained. ! Letters were addressed to workers individually by C&MD on Independence Day, Republic Day, New Year Day covering future of coal industry, financial health of the Company, welfare measures etc. ! Improvement in further communication with workmen by way of-______________________
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a) b) c) d) e)
f) !
Telecasting programmes on local Siti Cable pertaining to various activities of the Company. Starting Communication Cells in all the Areas. Displaying Wall Posters on various issues in the Mines & Departments and colonies. Inter action with the workmen by Multi Departmental Teams. Visit to colonies by the Team of Officers to have first hand report about welfare measures implemented in the colonies and also to take suggestions from the workmen and their family members. Holding press meets regularly.
Improvement in discipline by way of -a) Maintaining strict timings. b) Taking disciplinary action on chronic absentees. c) Improvement in work norms. d) Controlling of play day and over time. e) Regulating provision of dependant employment.
WORKERS PARTICIPATION IN MANAGEMENT

10.25 In CIL and subsidiaries there is a well established bi-partite forum consisting of the representatives of the Management and the 5 Central Trade Unions for interaction and redressal of issues related to the wages & service conditions, employment, safety, grievances and welfare etc. related matters. The following joint bipartite fora are operating at different levels: 1. 2. 3. 4. 5. 6. JBCCI at CIL Apex Jt. Consultative Committee Safety Board/ Safety Committee Welfare Board/ Welfare Committee Joint Consultative Committees Industrial Relation Meetings (Structural meetings with union).
10.26 The concept of workers participation in management has been in operation since time long at 3 levels in Singareni Collieries Company Limited (SCCL) i.e unit/mine, area and company levels, which have yielded satisfactory results in improving industrial peace and establishment of harmonious industrial relations. 10.27 The Central Labour Department conducted verification of the relative
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strengths of the trade unions operating in SCCL through Secret Ballot on 09.09.1998 for the first time in the Coal Industry in the country, under Code of Discipline and for the 2nd time on 19.02.2001 and 3rd time on 14th May, 2003. 10.28 After holding elections, Office Memoranda were issued laying down the rights and obligations of the unions at various levels read with Industrial Relations Policy of the Company. The Office Memoranda provide for adequate provision for representation of workmen through unions at various levels i.e. Mine level/Area Level/Company level. 10.29 At unit level i.e. Mine/Department level, the Mines Committees are functioning in place of Works Committees consisting of equal number of representatives from among the workmen and the Management. The Recognised Union at Company level will nominate its representatives to be the members on the Mines Committees to the extent of 100%, if it happens to be the Representative Status Union of the Area also. In the Areas where some other union has emerged as Representative Status Union, the Recognised Union will nominate its representatives to the extent of 50% and the remaining 50% of workmen representatives will be nominated by the Representative Status Union. The Committee will meet once in a month and deliberate on the steps to be taken to improve production, productivity and makes suggestions for redressal of the grievances/problems of the workmen peculiar to that unit. 10.30 In a similar fashion, Pit Safety Committees are also constituted as required under Mines Rules, 1955 at unit level providing adequate representation to the workmen in the manner indicated in Mines Rules. This Committee deliberates on safety matters and make suggestions for improving overall safety. 10.31 At Area level also the General Manager of the Area shall hold a monthly meeting with three/four representatives of the Recognised Union on the scheduled day once every month and also with the Representatives of Representative Status Union in a similar manner and discuss the various issues exclusively pertaining to that Area. 10.32 A structure has been created in SCCL for discussion with unions at each level. At apex level, eight representatives of the recognised units meet CMD, once in three months, to discuss policy issues. RESERVATION POLICY COAL INDIA LIMITED 10.33 The reservation policy is being maintained on recruitment and promotion of Scheduled Castes and Scheduled Tribes respectively as per Presidential Directives. 91 ______________________
Direct Recruitment For Group-A & B posts All India basis by means of open Basis competitive test (written) All India Basis otherwise than by not conducting written competitive test
SC 15%
ST 7%
OBC 27%
Promotion For groups A,B,C,D All India
SC 15%
ST 7 %
16 2/3%
7 %
10.34 Apart from the above there is a directive on reservation on recruitment on C&D Group of SC/ST where state-wise reservation is being maintained. Subsidiarywise / State-wise reservation % - age is appended below:State Jharkhand Jharkhand Jharkhand WB WB WB Orissa MP Chattisgarh Maharastra Assam Company BCCL CCL CMPDIL ECL DCC CIL/Kolkata MCL NCL SECL WCL NEC % age of SC 15 15 15 22 22 22 15 14 14 07 06 % age of ST 09 09 09 06 06 06 23 23 23 09 11 % age of OBC 25 26 26 22 22 22 12 13 13 27 27
----- x ----- x ----- x -----
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CHAPTER XI
EMPLOYEES WELFARE AND SOCIAL SECURITY SCHEMES
WELFARE 11.1. The focus of our Welfare Activities is the welfare of our employees and their families. The Coal Companies are paying greater attention to the welfare of their workers. Every effort is being made to improve the living conditions of the coal miners. In order to create a sense of belonging and involvement in work, top priority is given by the management to provide housing, medical and educational facilities etc. The results of the welfare measures taken in different areas are as under: HOUSING 11.2. At the time of Nationalisation, in Coal India Ltd and its subsidiaries there were only 1,18,366 houses including sub-standard houses. The availability of these houses has increased to 411531 (upto 31.12.2005). The percentage of housing satisfaction has now reached to 87.66%. The details of houses constructed (upto 31.12.2005) are given in Annexure-XI. 11.3. As on 30.9.2005 there are 47,676 quarters existing in all the areas of the Singareni Collieries Company Limited (SCCL) 4515 quarters are under construction. The Housing satisfaction is 57.56 %. WATER SUPPLY: 11.4. Coal India Ltd. & its subsidiaries as against 2.27 Lakhs population having access to potable water at the time of Nationalisation in 1973, presently 22.81 Lakh (upto 31.12.2005) population has been covered under water supply scheme. Details of population covered under Water Supply Scheme (upto 31.12.2005) are given in Annexure-XII. 11.5. SCCL has provided the following drinking water facilities to its employees and community. 2005-06 Works in (April,05 to Dec.05) Progress --------------------------------Individual taps 47416 4717 Taps to private huts 6189 --Community taps 4263 --Bore wells 1044 28 Community Tanks 121 03 ______________________
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MEDICAL FACILITIES: 11.6. The Coal India Ltd. and its subsidiaries are extending medical facilities to its employees and their families through various medical establishments starting from the Dispensary level to the Central and Apex Hospitals in different parts of the coalfields. 11.7. There are 86 hospitals with 5,875 Beds,430 Dispensaries, 673 Ambulance, and 1,672 Doctors including Specialists in CIL and its subsidiaries to provide medical services to the employees. Besides 12 Ayurvedic Dispensaries are also being run in the Subsidiaries of Coal India Limited to provide indigenous system of treatment to workers. 11.8. SCCL is having 6 Area Hospitals, 1 Main Hospital at KGM and 40 Dispensaries having 1008 beds and 36 nos. of ambulances provided. EDUCATIONAL FACILITIES: 11.9. The primary responsibility of providing educational facilities lies with the State Govt. However, CIL on its part has been providing financial assistance and infrastructure facilities to certain schools like DAV Public Schools, Kendriya Vidyalaya, Saraswati Vidyamandir, Ramakrishna Vivekananda Vidyapith, Delhi Public School etc and other educational institutions run by the State Government. In addition, as a part of Community Development Programme financial assistance by way of grant-in-aid/infrastructure facilities are also provided to certain privately managed schools by the subsidiary coal companies functioning in and around coalfield areas. 11.10. EDUCATIONAL FACILITIES in (SCCL) a) No.of High schools and Upper Primary Schools run by S.C. Educational Society b) No. of Degree Colleges (Women) c) No.of Junior Colleges (Women) : : : 17 1 1
The above educational institutions are running by Singareni Collieries Education Society. Statutory Welfare Measures: 11.11. In accordance with the provision of the Mines Act 1952 and Rules and Regulations framed there-under, subsidiaries of Coal India Limited are maintaining various statutory welfare facilities for the coal miners such as Canteen, Rest Shelters and Pit Head Baths etc. 94 ______________________
11.12. The following Statutory Schemes are also in operation in Coal India Limited, and SCCL:Coal Mines Provident Fund Scheme: Employees contribution Employers contribution : : 12% of wages 12% (equal contribution)
(Compound interest @ 9.5% is paid from 2001-02 on the accumulation per annum) Coal Mines Pension Scheme 1998: Employees contribution:
2% of the salary from 01-04-1989 to 31.03.1996 and 2% of the notional salary from 01-04-1996 + an amount equivalent to one increment calculated on the basis of salary as on 1st day of July, 1995 of employees appointed after 01.07.1995 or the date of joining whichever is later. An amount equivalent to two and one third percent of contribution of salary of the employee. An amount equivalent to one and two third percent of the salary of the employee.
Employee and Employers : Central Govt. contribution :
11.13 Non-statutory Welfare Measures: Co-operative Stores and Credit Societies: In order to supply essential commodities and Consumer goods at a cheaper rate in the Collieries Central Co-operatives and Primary Co-operative Stores are functioning in the Coalfield areas of CIL. In addition Co-operative Credit Societies are also functioning in the Coal Companies. The workmen of SCCL working in the mines and departments are encouraged to become members of Employees Cooperative Credit Society with a view to inculcate the culture of thrift and avoid our employees going to money lenders for obtaining loans. There are 51 Cooperative Credit societies functioning in the mines and departments of SCCL which grant loans to the member employees for the purpose of meeting expenditure on the education of their children, purchase of two wheelers etc.. Depending upon the financial status of each Coop. Credit society, personal loan to a maximum of Rs.60,000/- is being granted by the society to the member employee. The Cooperative Credit Societies would also accept the deposits ______________________
95
from the member employees. Further, the maximum amount may varies from one Cooperative Society to another Cooperative Society as per their discretion. 11.14. Banking Facilities: The Management of Coal Companies are providing infrastructure facilities to the various Nationalised Banks for opening their Branches and Extension Counters in the Coalfields for the benefit of their workers. Workers are educated to draw their salaries through Banks/Extension Counters and they are also encouraged to practice thrift for the benefit of their families. 11.15. Social Security Schemes:In SCCL, the following social security schemes are existing for the welfare of its employees; (a) Insurance Schemes:
Premium payable @ Rs.280/- for 2 years @ Rs.10/-p.m.per employee @ Rs.200/-per month @ Rs.100/-per month @ Rs.65/-per month @ Rs.60/-per month Amount payable Rs.1,00,000/Rs. 10,000/Rs. 37,000/Rs.2,00,000/Rs.1,00,000/Rs. 65,000/Rs. 60,000/-
Name of the schemes 1. JPAIS 2. FBIS 3. Group Insurance 4. Group Service Linked Insurance Scheme (GSLIS)
11.16. Group Gratuity Scheme with LIC of India: (SCCL) a) This Scheme is effective from 11.12.2003 and covers both Executives and non-executives and covers trainees in regular grade and other employees who are covered under the Gratuity rules of the company. b) Gratuity will be paid by LIC of India to employee / nominee for the period of service rendered by the employee as per the existing rules and limits. c) In addition, in case of unfortunate death of the employee, LIC would also pay gratuity for the service the employee would have rendered until retirement had he been alive. d) The total of (b) and (c) shall be restricted to Rs.3,50,000/- or the ceiling as prescribed in the Payment of Gratuity Act from time to time.
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Other welfare schemes in SCCL 11.17. Ex-gratia- An amount of Rs.30,000/- as ex-gratia w.e.f. 1-1-2005 is being paid to the bereaved family of the workmen died in mine accidents in accordance with the provisions of National Coal Wage Agreement. 11.18. Matching grant- Management is giving matching grant subject to a maximum of Rs.1,00,000/- (w.e.f. 01.07.2004) in case of death of a workman due to Mine Accident while in service and Rs.5000/- in case of death due to other than Mine Accident provided his co-workers do not resort to sympathetic strike and contribute their donation for the welfare of the bereaved family. 11.19. DEPENDANT EMPLOYMENT Dependant Employment is being provided to the dependants of Ex-employees died in harness / declared medical unfit as per NCWA provisions subject to availability of vacancies. As per various Settlements 223 nos of dependents have been provided employment during the year 2005-06(December, 2005) 11.20. In the financial year 2002-03, a settlement was arrived at on 08.03.2002 with the Recognized Union on payment of Monetary Compensation in lieu of dependant employment under Company Voluntary Retirement Scheme (VRS on health grounds).There are about 3067 dependants waiting for employment under Company VRS. Out of which, 2,853 cases have been settled as on 31.12.2005 for payment of monetary compensation / lump sum payment of 24 months wages last drawn in lieu of dependant employment. 11.21 MONTHLY MONETARY COMPENSATION (MMC) / LUMPSUM PAYMENT: The Scheme of MMC has been implemented in lieu of Female Dependant Employment in respect of the cases of Death / Board Medical Unfit arose from 0210-1991, in accordance with the Memorandum of Settlement dated 31-07-1997. As per the guidelines of JBCCI implementation, the claims are being received from areas for settlement of MMC, as on 31.12.2005, 1676 claims have been settled and sanction of Payment Orders released to pay the beneficiaries @ Rs.3,000/- per month in case of Death in harness and Rs.4,000/- per month in case of Fatal / Mine Accident. The details of lump sum cases settled are as follows: Period 2001-02 2002-03 2003-04 2004-05 2005-06(As on 31-12-05) ______________________
No. of cases settled 163 957 1022 721 288

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ECOLOGY AND TREE PLANTATION: 11.22. Coal India Limited has been making continuous efforts to keep environment free from pollution. The Subsidiaries of CIL have been undertaking development of Green belts. The plantation is done on waste and reclaimed land. During 2005-2006 the Coal Companies have planted 24.98 Lakh(Prov.) trees. WOMENS WELFARE 11.23. The total strength of women employees in CIL and its subsidiaries as on 01.10.2005 is 29,562 which constitute about 6.4% of the total manpower. These women workers have been employed on the surface in coalfields. Efforts have been made in the subsidiaries for gainful deployment of women not only in the conventional activities such as in the medical, welfare, Security, Secretarial but also in non-conventional activities like HEMM Operator, Pump Operator, Fan Operator, in the workshops, Motor winding, Cap Lamp fitter helpers etc. In spite of this, large number of Women workforce is under utilized and surplus in the unskilled categories. Efforts are made to ationalize such women workforce. 11.24 The strength of female employees in CIL and its subsidiaries as on 31.12.2005 is given below:
Company ECL BCCL CCL WCL SECL MCL NCL NEC CMPDIL DCC CIL(HQrs.) TOTAL Strength of Female Employees. 8408 7078 5488 3089 3442 917 514 271 155 29 171 29562
Womens welfare in SCCL a) The provisions of Maternity Benefit Act are being implemented benefiting the Women employees of the Company. Under this Act Women employees are sanctioned Maternity Benefit Leave.
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______________________
b)
In all the Areas, Womens Cells have been constituted with the women employees for effective function and to redress problems of women employees relating to their employment in writing to the Convenor of Womens Cell concerned. The Convenor of the Womens Cell of the Area concerned was advised to conduct regular meetings with the Committee members for redressal of the grievances of the women employees. In order to create awareness of the company as well as of the outside the world among workmen and their families about savings habit, health and hygiene, literacy, childrens education, safety, post retirement planning etc, an association called Singareni Employees Wives Association (SEWA) has been constituted in all the Areas with the active participation of Wives of employees.
c)
----- x ----- x ----- x -----
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CHAPTER XII
SAFETYAND PUBLIC GRIEVANCE CELL
MEASURES TAKEN FOR IMPROVEMENT OF SAFETY 12.1 The following broad safety measures were pursued in the year 2005 for reduction of accidents in the coal mines of CIL : Thrust was maintained on conducting Safety Audits of mines by expert Mining/Mechanical /Electrical Engineers for assessment of threat of major accidents from inundation, fire, explosion or roof fall. One round of Safety Audit was completed in all subsidiary companies during 2004 & 2005 and the status of implementation of results of the same was monitored and corrective action was taken wherever required. Inspections of mines, including surprise back-shift inspections, by senior officers like Area GMs, Agents/Sub-Area Managers/Project Officers, Colliery Managers and officers of the Internal Safety Organisation. As a measure of precaution against in-rush of water the following measures were pursued : # Assessment of danger of inrush of water from surface as well as underground sources was done for each mine, in consultation with DGMS authorities and action programme drawn up and implemented. # Extensive check surveys were undertaken by teams of surveyors within the Areas and also by external agencies. Thrust on measures for prevention of roof/side fall accidents was maintained through Drawing up Support Plans for each mining district based on scientific Rock-Mass-Rating and implementation of the same. Thrust on use of steel roof bolts/steel rope roof stitching using quick setting cement capsules. Resin grouting has been introduced in some highly watery mines. Training of support personnel, dressers and supervisors. For reduction of accidents in opencast mines the following measures were taken # Implementation of Codes of Practice and Traffic Rules and monitoring implementation of the same. # Examination of contractors vehicles/equipment by the companys engineers.
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# Conducting on-site training programmes for contractors employees. # Training and retraining of Heavy Earth Moving Machinery operators in modern training institutes. # Conducting of slope stability studies and implementation of recommendations thereof.. Immediately after the major accident at Central Saunda Colliery, CCL a quick safety audit of mines was conducted to detect conditions that might have a potential for a large number of casualties and corrective action was taken. Risk Assessment as a tool for improvement of safety in mines was continued and completed in 41 mines. This is being introduced progressively in other mines also. Efforts towards reduction of exposure of workmen to risks through mechanisation of operations in underground mines were continued by replacement of manual loading by mechanised loading by Side-DischargeLoaders, Load-Haul-Dumpers, Powered Support Longwall Technology, Continuous Miner Technology. Regular Basic and Refresher Training was imparted to workmen and supervisors. Special on-site training programmes were conducted for contractors workers. Regular retraining programmes were conducted for special categories of employees like support-men, dressers and supervisors. Audio-visual training films on various subjects have been prepared for imparting standardised training in each Vocational Training Centre in each coal producing country. Thrust on Emergency preparedness was maintained through # Preparation of Emergency Action Plans # Demarcation of Escape Routes belowground as well as on plans. # Conducting of Mock Rehearsals, monitoring failure points for further improvement.
12.2. There has been continuous improvement in the safety front in the mines of Coal India Limited since its formation in 1975*. However, the unfortunate occurrence of a major accident at Central Saunda Colliery of CCL on 15th June, 2005, in which precious lives of 12 workmen and 2 supervisors were lost due to fall of roof in the goaf followed by in-rush of water from an upper seam, has resulted in an increase in fatal accidents and fatalities over that in the same period in the previous year. Safety Statistics for Coal India Ltd. at ten-year intervals since formation of the company in 1975 and 2005 (till Dec.) compared to the same period in 2004 are given
*
Safety statistics are maintained calendar year-wise in conformity with DGMS practice. 101
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below in Table 1. Company-wise accident statistics for Coal India Ltd. for 2004 are given in Table 2. Table 1: Safety Statistics for CIL since formation at 10 yr intervals & 2005 compared to 2004.
SERIOUS ACCIDENTS FATALITY RATE SERIOUS INJURY RATE PER M.T. 17.03 3.97 2.65 1.48 1.08 PER 3 LAKH MANSHIFTS 3.41 1.07 1.14 1.35 1.06
FATAL ACCIDENTS YEAR
ACCIDE FATALI ACCIDE SERIOUS PER 3 LAKH PER M.T. NTS TIES NTS INJURIES MANSHIFTS 177 136 113 66 73 233 152 192 70 94 1456 507 575 459 354 1515 524 612 474 364 2.62 1.15 0.83 0.22 0.28 0.52 0.31 0.45 0.20 0.27
1975 1985 1995 2004 2005
Note: Figures for 2004 & 2005 are subject to reconciliation with DGMS
Table 2: Company-wise Accident Statistics for Coal India Ltd for 2005 (Jan.Dec.).
Serious Fatality rate Fatality rate injury rate Serious per million per 3 lakh per m.te. injuries tonnes coal manshifts Coal deployed produced produced 114 0.54 0.20 3.88 66 0.75 0.29 2.91 16 0.56 0.51 0.40 18 0.06 0.21 0.35 45 0.26 0.19 1.05 90 0.18 0.23 1.10 13 0.13 0.51 0.19 2 1.30 0.45 2.61 364 0.28 0.27 1.08 Serious injury rate per 3 lakh manshifts 1.41 1.13 0.37 1.27 0.76 1.36 0.74 0.89 1.06
Fatal COMPANY accidents ECL BCCL CCL NCL WCL SECL MCL NEC CIL 15 12 8 3 11 14 9 1 73
Fatalities
Serious accidents 114 61 16 17 44 87 13 2 354
16 17 22 3 11 15 9 1 94
Note: Figures are subject to reconciliation with DGMS
12.3
MEASURES TAKEN FOR ENHANCEMENT OF SAFETY IN SINGARENI COLLIERIES COMPANY LIMITED
SCCL is taking the following safety measures to prevent accidents in its coal mines.
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UNDERGROUND MINES 1. To control Roof and Side Fall Accidents: i) Standardizastion of Roof Bolting activity in all underground mines (Churning, full column grouting etc.) ii) Introduction of Semi-mechanization with a view to reduce exposure of workmen to potentially dangerous areas. 93 Side Dump Loaders and 37 Load Haul Dumpers have been introduced in the underground mines. iii) Conducted Awareness Classes on Depillaring Operations for Supervisors, Executives with the help of Animation programmes. iv) Conducted Workshops on prediction of roof falls by interpreting convergence readings. v) Utilization of the services of scientific institutions like NIRM, CMRI with regard to the design of support pattern for effective Strata Management. vi) Training Galleries were established in all underground mines to impart better, relevant training to the workmen in addition to the statutory training that is being given by Mines Vocational Training Centres. 2. To control Haulage accidents: i) Efforts are made to inculcate safety awareness among all workmen including tramming personnel so that they would keep away from set riding. ii) SCCL is operating 48 underground mines. To avoid fatigue and drudgery of walking and effective utilisation of men and time, it is approved to commission 36 Man-riding systems in 33 mines, out of which 21 systems have been installed and commissioned. iii) Surprise inspections by senior officers in the back shifts. iv) Counselling to the family members in workers colonies. v) Disciplinary action taken against guilty in respect of accidents. OPENCAST MINES i) ii) Small Tippers belonging to off loading contractors have been replaced with dumpers, there by reduction in the fleet movement. Initial training and Booster training programmes are being organised to the Contractor Workmen with a view to develop safety consciousness and to reduce the rate of accidents in opencast mines. In this regard, small pocket size booklets on Safety Awareness in Opencast mines are prepared and they were supplied to all the Contractor Workmen.
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iii) iv)
Full size posters, depicting Dos and DO NOTs are under preparation. The same will be exhibited at opencast mines to develop safety awareness. One video CD is under development, focussing on the occurrences of accidents in opencast mines and remedial measures. The same will be exhibited in the mines and through the Citi cable. Strict implementation of Traffic Rules. Improved illumination standards.
v) vi)
vii) Use of cap lamps by workmen in back shifts. viii) Use of radium strap jackets. General Safety: i) ii) iii) In every mine, Daily Safety Pledge is being administered by all workmen at the beginning of each shift. Training & Re-training of all workmen including supervisors are being taken up. Escape routes other than the normal travelling roadways have been prepared and maintained at such mines, where there is likely possibility of danger from Inundation, gas, fire etc., so that workers can come out safely during the mishap, if any. Karmikamitra, Press and Local Siti cable were invited education and safety awareness among our employees. to promote safety
iv) v)
Under taking supervisory development programme among Mining Sirdars, Overmen and Shot fires to improve the knowledge of the supervisory staff to build up confidence levels in them. Development of CDs on Roof Bolting activity, caving operations, Escape Routes, standard operating practices on sand stowing, running of conveyor belts and displaying them at the mines to bring awareness among the workmen.
vi)
vii) Involvement of Unions in Tripartite, Bipartite, Regional Safety Committee, Mines Committee Meetings inviting their suggestions regarding safety related activities and implementation of their suggestions. viii) Organising safety anchor programmes in the colonies among the family members of the workmen for taking safety messages up to the family members. ix) x) Undertaking Safety Audit Inspections among the mines and implementation of safety recommendations brought out by Audit Inspection Teams. Conducting awareness programmes for ventilation officers and safety officers to improve environment conditions in underground mines.
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xi)
Increasing the strength of the Rescue Trained persons by 20% over the statutory requirement.
xii) Introduction of State of the Art equipment at Rescue Station. xiii) Inspections by Senior Officers in back shifts. SAFETY STATISTICS OF SCCL Details of fatalities and serious injuries in Singareni Collieries Company Limited are given in Table-1 to 3B TABLE-1 : Details of fatalities and serious injuries in Singareni Collieries Co. Ltd. during the last six years:
No. of persons seriously injured 90 114 120 73 162 789 @ INJURY RATE PER Million Tonnes of 3 Lakh Manshifts worked Production F S F S 1.12 3.05 0.42 1.14 0.80 3.68 0.33 1.50 0.68 3.56 0.31 1.64 1.36 2.26 0.65 1.09 0.41 4.72 0.20 2.33 0.35 22.70 0.17 11.41
Year
Fatalities
2000 2001 2002 2003 2004 2005
33 25 23 44 14 12
F = Fatal S=Seriously injured NOTE @Inclusive of low energy serious injuries such as fracture of phalanges/toes which are being reported now as per the decision taken in the 30th Tripartite Safety Review Meeting held on 29th January, 2005.
TABLE-2A: Cause-wise, analysis of fatalities for the period April, 2005 to December, 2005 as compared to the same period of 2004.
Year 2004-05 2005-06 Total Fatalities 10 6 Fall of Ground 7 Haulage 1 Explosives 3 Machnery 3 Electricity 1 Gas in Rush Others 1
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TABLE-2B: Cause-wise, analysis of seriously injured persons for the period April, 2005 to December, 2005 as compared to the same period of 2004 .
Year Total seriously injured 149 644 Fall of Ground 12 33 Haulage Explosives Machinery Electricity Gas in Rush 1 Others
2004 2005
36 99
2 2
6 22
93 487
TABLE-3A: Place-wise, analysis of fatalities for the period April, 2005 to December, 2005 as compared to the same period of 2004 . Year 2004 2005 Total Fatalities 10 6 Underground 10 4 Opencast 2 Above Ground -
TABLE-3B: Place-wise, analysis of seriously injured persons for the period April, 2005 to December, 2005 as compared to the same period of 2004 . Total Seriously injured 149 644
Year 2004 2005
Underground 123 531
Opencast 12 26
Above Ground 14 87
COAL BED METHANE STUDIES : 12.4 Coal Bed Methane (CBM)/Coal Mine Methane (CMM) is an emerging energy resource. In view of importance being now attached to CBM globally, the Ministry of Petroleum and Natural Gas (MOP&NG) the administrative Ministry, in consultation with Ministry of Coal has taken steps to allot the prospective blocks for development of CBM under approved policy of Govt. of India. Ministry of Petroleum & Natural Gas has called for two global biddings till date, allocating five blocks (namely Raniganj East block, North Karanpura (East), Bokaro, Sohagpur (East) and Sohagpur (West) in the first bidding and eight blocks (namely North Karanpura (West), South Karanpura, Barmer I, Barmer II, Barmer III, Sonhat, Satpura and Wardha in the second bidding. Two blocks (Jharia and Raniganj) have been allotted to ONGC CIL joint venture on nomination basis. ______________________
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Delineation of prospective CBM Blocks for third round is under process. 18 prospective CBM blocks have been delineated so far with prognosticated resource and 900 BCM in about 9000 sq. k.m. area, out of which 16 have been awarded to different agencies. The delineation is primarily carried out by CMPDI as it is the nodal agency for coal exploration and mine related data. Presently at CMPDI, 7 additional CBM blocks are in the process of delineation coverning an area of 4000 sq. k.m. with prognosticated CBM resource of 460 BCM. UNDP/GEF/GOI- Coal Bed Methane Recovery & Commercial Utilisation 12.5 With an objective to demonstrate the economic viability of harnessing CBM alongwith, mining (Coal Mine Methane or CMM), the Govt. of India in collaboration with UNDP/Global Environment facility (GEF) has taken up a demonstration project at Moonidih and Sudamdih mines of BCCL in Jharia Coalfield at an estimated cost of Rs.92.43 crores. Objective 12.6 The objective of the project is to degasify coal seams for safer extraction of coal and to demonstrate economic viability of harnessing CBM in India. The project would undertake techno-economic evaluation of in-situ gas from existing mines in areas goaved out as well as where mining is contemplated later and demonstrate optimal harnessing of methane which other-wise would have escaped into atmosphere. The project is being implemented by CMPDI and BCCL and is likely to be completed by October,2006. 12.7 The most prevalent method of mining coal in India is bord and pillar. The mining operator in this method are such that most of the methane gas is escaped during extraction of coal and as such scope of Coal Mine Methane (CMM) and Abandoned Mine Methane (AMM) is very limited. However, steps have been initiated to study the prospects of AMM in Indian context under UK India CBM transfer project. The project is sponsored by Department of Trade and Industry(DTI), Govt. of U.K. and being managed by M/s Wardell Armstrong, CMPDI has been commissioned to take up the job.
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CHAPTER XIII
DEVELOPMENT ACTIVITIES IN NORTH EAST
DEVELOPMENTAL ACTIVITIES IN NEC 13.1 Introduction
In the North Eastern Region, there are coalfields in the states of Assam, Arunachal Pradesh, Meghalaya and Nagaland. However, CIL has its mining activities mainly in Makum coalfield of Assam. Five mines are now in operation in North Eastern Coalfields (NEC), out of which three are underground and two are opencast. Production in NEC, though depleted gradually from 12.01 lakh tonnes in 1993-94 to 6.28 lakh tonnes in 2004-05, has again started improving from this year. The production of the current year till December, 2005 has been 4.87 lakh tonnes and it is expected that the annual revised target of 10.5 lakh tonnes would be achieved by 31st March, 2006.
13.2
Market Scenario Past & Present
Market of NEC has gradually shrunk market over last 20 years. It improved constantly from 1973-74 till 1995-96. Thereafter, it got declined till 2004-05. There has again been improvement from this year onward. The trend of despatch of NEC coal is as follows : Figs. in lakh tones
Rev. Yr. 1973-74 1978-79 1983-84 1988-89 1993-94 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 till Dec.05 By rail 3.40 4.66 5.19 6.22 6.35 7.37 4.93 3.47 5.04 5.18 5.40 4.32 4.89 7.39 3.93 5.46
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By road 0.78 1.56 2.56 2.24 1.16 2.94 3.35 2.20 1.96 3.03 2.20 1.88 1.51 1.31 1.75 1.40
Total 4.18 6.22 7.75 8.46 7.51 10.31 8.28 5.67 7.00 8.21 7.60 6.20 6.40 8.70 5.68 6.86
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13.3 There are hardly any linked consumers for NEC Coal in non-core sector. Apart from some tea gardens, bricks & small coke plants of the region, BRK industries of Punjab & Haryana are other big consumers outside the region who have been presently taking coal through e-marketing. NER has no major coal-based Industry excepting Hindustan Paper Corporation's Jagiroad & Panchgram Paper Mills and Cement Corporation of India's Bokajan factory. M/s. National Thermal Power Corpn. has now introduced themselves to be a big consumer of NEC Coal for their plants outside the region. They are now planning to take over Bongaigaon Thermal Power Station (BTPS) of Assam State Electricity Board at Salakati, Assam for which CIL has committed to supply total requirement of around 1.7 Million tonnes of coal per annum by expanding its mining activities in the region. 13.4 Performance of NEC during last five years
00-01 PRODUCTION (Tonnes) i) Underground ii) Opencast iii) Total DESPATCH (Tonnes) PROFIT/LOSS (Rs. CRORE) 204693 455487 660180 759610 63.14 01-02 180896 459119 640015 620300 41.84 02-03 112000 521000 633000 639780 44.77 03-04 122559 610585 733144 869680 43.59 04-05 149715 478421 628136 567540 68.82
13.5
Performance of NEC during 2005-2006 (till December 2005) Coal Production 0.83 lakh tones Underground 4.04 lakh tones Opencast 4.87 lakh tones Total OMS 0.22 tonnes Underground 4.92 tonnes Opencast 1.08 tonnes Total Coal Despatch / offtake 6.86 lakh tones Despatch 0.01 lakh tones Domestic consumption 6.87 lakh tones Offtake Pit-head coal stock as on 1.87 lakh tones 31.12.2005 No. of mines 5(Five) working
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CHAPTER XIV
NEYVELI LIGNITE CORPORATION LIMITED
14.1 NLC was registered as a company on 14th November, 1956. The Mining operations in Mine-I were formally inaugurated on 20th May 1957 by the then Prime Minister Pandit Jawahar Lal Nehru. Neyveli Lignite Corporation has been conferred with MINIRATNA status. 14.2. NLC operates three lignite mines and three thermal power stations. The capacity of the various units is as under: Mine-I ... 10.5 MT/ annum. Mine-IA 3 MT / annum Mine-II ... 10.5 MT/ annum. Thermal Power Station-I (linked to Mine-I) 600 MW Thermal Power Station-I Expansion (linked to Mine-I) 420 MW Thermal Power Station-II (linked to Mine-II) ... 1470 MW Mine I 14.3 The first Lignite Mine has been in operation since 1961 using continuous mining technology viz., Bucket Wheel Excavators, Mobile Transfer Conveyors and System of Conveyors, which are used for excavation and transportation of lignite and overburden. Spreaders are used for dumping of overburden. The technology and the equipment were imported from Germany and German credit was availed for import of specialized mining equipment. The capacity of this Mine was 6.5 MT which met the fuel requirement of Thermal Power Station-I. The capacity was increased to 10.5 MT of Lignite /Annum from March 2003 under Mine-I Expansion Scheme and at present meets the fuel requirement for generating power from Thermal Power Station-I and Thermal Power Station-I Expansion. Mine-I A 14.4 This Mine produces 3 MT of lignite per annum, using continuous mining technology. The lignite production commenced from 30th March 2003 and the lignite excavated from this Mine is catering to the need of M/s. ST-CMS-an IPP, and the balance for the best commercial advantage of the existing Power Plants of NLC. Mine-II 14.5. The second mine was implemented in two stages. In the first stage, the production capacity was 4.7 MT per annum and in the second stage, it was increased to 10.5 MT and the expansion was completed in December 1991 with the ______________________
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commissioning of last overburden system. Specialized mining equipment, viz., BWEs, Spreaders, Mobile Transfer Conveyors were imported from Germany with sizeable indigenous content. The conveyors for the Second Mine were supplied by M/s. Elecon Engineering, India. 14.6. During the year 2005-06, all the three Mines i.e. Mine-I, IA & II of NLC have received ISO Certification for Quality Management System (ISO 9001: 2000) Thermal Power Station-I 14.7. The Thermal Power Station-I (capacity 600 MW) has six units of 50 MW each and three units of 100 MW each. All the nine units of this power station were commissioned between May, 1962 and Sept, 1970. The equipments of this power station were imported from the then USSR under Indo-Soviet assistance Programme. The erection was entirely carried out by Indian engineers/ workers under the supervision of experts from USSR. Entire power generated from this thermal power station after meeting NLC's requirement is fed into the Tamil Nadu Electricity Board grid, which is the sole beneficiary. As the units have served more than its normal life (One lakh unit running hours), Life Extension Programme was taken up between April 1992 and March 1999. Thus, the life of this plant has been extended by another fifteen years. Thermal Power Station-II 14.8. The second power station was implemented in two stages. Under Stage-I, 3 units of 210 MW each were commissioned between March, 1986 to January 1988. Boilers were supplied by M/s. Trans-Electro, Hungary and Turbo Generators by M/s. Franco Tosi of Italy. Under Stage-II, 4 units of 210 MW each were commissioned between March 1991 and June 1993. Equipments were supplied by M/s. Bharat Heavy Electricals Limited (BHEL), India. Power generated from the Second Thermal Power Station after meeting NLC's internal requirements is shared by the Southern States viz. Tamilnadu, Andhra Pradesh, Karnataka, Kerala and Union Territory of Pondicherry in accordance with the formula on sharing of power applicable to the power stations set up in the Central Sector. Thermal Power Station-I Expansion 14.9. Government of India sanctioned the installation of 2 units of 210 MW for expansion of first Thermal Power Station on 12th February, 1996 at a cost of Rs. 1590.58 Crore. The first 210 MW unit was synchronized on 21st October 2002. Subsequently, the second 210 MW Unit was synchronized on 22nd July 2003. Power generated from the Thermal Power Station-I Expansion is shared by the Southern States viz. Tamilnadu, Karnataka, Kerala and Union Territory of Pondicherry in ______________________
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accordance with the formula on sharing of power applicable to the power stations set up in the Central Sector. 14.10. All the three Power Stations of NLC have already received ISO Certification for Quality Management System (ISO 9001: 2000) and Environmental Management System (ISO 14001: 1996) in August 2004. PROJECTS UNDER CONSTRUCTION / IMPLEMENTATION Mine-II Expansion (4.5 MTPA). 14.11. Government of India has sanctioned the expansion of Mine-II from 10.5 MTPA to 15.0 MTPA of lignite on 18th October 2004 at a capital cost of Rs. 2161.28 Crore, with a scheduled date of lignite production in 53 months from the date of sanction of GOI and attaining full capacity in 57 months from the date of sanction of GOI. Order for Main Mining Equipment was placed in January/February 2005. Supplies were commenced for Bucket Wheel Excavators, Spreaders, MTC in October, 2005 and is in progress. TPS-II Expansion (2x250 MW) 14.12. Government of India sanctioned the installation of 2 units of 250 MW for expansion of Second Thermal Power Station on 18th October, 2004 at a cost of Rs. 2,030.78 Crore, with a scheduled commissioning of Unit-I on the 53rd month from the date of sanction of GOI and for Unit II on the 57th month from the date of sanction of GOI. Order for main plant package, lignite handling system and switchyard has been placed. Tendering activities are in advanced stage for other packages. Barsingsar Mine Project (2.10 MTPA.) 14.13. Government of India has sanctioned the Barsingsar Mine Project on 15th December, 2004 at a capital cost of Rs. 254.07 Crore, with a schedule of lignite production on 45th month from the date of sanction of GOI and attaining full capacity on 54th month from the date of sanction of GOI. Tendering activities for overburden outsourcing is in progress. Barsingsar Power Project (2x125 MW.) 14.14. Government of India sanctioned the installation of 2 units of 125 MW in Barsingsar Power Project on 15th December, 2004 at a cost of Rs. 1,114.18 Crore, with a scheduled commissioning of Unit-I on the 48th month from the date of sanction of GOI and for Unit II on the 54th month from the date of sanction of GOI. Tendering activities are in progress. ______________________
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PROJECTS UNDER CONSIDERATION OF NLC

Coal based Thermal Power Plant at Tuticorin (2x500 MW) (Joint Venture Project with TNEB)
14.15. Joint Venture Agreement (JVA) was signed between NLC and TNEB on 9th June 2005. A new joint venture company NLC Tamilnadu Power Ltd has been incorporated on 18th November, 2005. Project Feasibility Report has been made ready. However, cost portion of FR is being up dated. Approval for Coal linkage from Talcher Coal Fields of MCL is awaited from Ministry. An MOU was signed between Tuticorin Port trust and NLC on 28.10.2005 regarding the land lease and other facilities. AAP is under implementation. Coal based Thermal Power Plant at Orissa (4x500 MW) 14.16. The Feasibility Report will be finalized after signing of MOU with Govt. of Orissa. The draft environment report submitted by the consultant has been examined and comments furnished to the consultant. EIA/EMP report will be finalized after finalizing the FR. AAP under implementation.
Refinery Residue based Power Plant at Chennai (492 MW) (Joint Venture project with CPCL)
14.17. A high level meeting was held at Chennai on 14th July, 2005 between NLC and CPCL to discuss about the viability of the project and to proceed further on the project proposal. During the discussions, a decision has been taken to go in for retendering to fix up an agency for preparation of Detailed Feasibility Report. Action is being taken to fix up an agency. Mine-III (8.0 MTPA) 14.18. Preparation of Feasibility Report (FR) of the project with different options is under progress. EIA / EMP reports could be finalized after finalisation of Feasibility Report. The US Trade and Development Agency (USTDA) have come forward with a grant of $ 360,000 for preparation of FR with alternate Mining Technology. This proposal is under negotiations with the authorities of U.S.A. TPS-III (2x500 MW) 14.19. Draft FR is ready. The same could be finalized after the finalisation of the FR of linked mine project. EIA / EMP reports could be finalized after finalisation of the Feasibility Report. ______________________
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PERFORMANCE OF EXISTING PROJECTS : 14.20. Overburden removal, lignite production, gross power generation and its export during the year 2005-2006 (April to December 2005) are indicated below :
Product Overburden Lignite Power Gross Power Export Unit LM3 LT MU MU April 2005 to December 2005 Target Actual 883.50 872.58 148.75 151.01 11411.00 12396.68 9493.00 10488.96
PRODUCTIVITY: 14.21. The productivity performance in 2004-2005 and 2005-2006 (April 2005 to December 2005) are furnished in the table below: OUTPUT PER MANSHIFT (OMS)
2004-2005 Actual Mines Thermal Tonnes KwHr 125.83 16439 2005-2006 (April 2005 to December 2005) Target 111.58 11869 Actual 116.11 16497
Unit
14.22. The PLF achieved by TPS-I, TPS-I Expansion and TPS-II during 2004 - 2005 and 2005-2006 (April 2005 to December 2005) are as under:
(in percentage) Unit T.P.S-I T.P.S-IE T.P.S-II 2004-2005 2005-2006 (April '05 to December '05) Actual Target 81.03 88.01 71.82 69.12 69.81 69.46
Actual 72.75 81.72 74.73
AUTHORISED CAPITAL : 14.23. The authorised capital of NLC is Rs. 2,000 crore. The investment by Govt. of India upto 31.12.2005 is as under : ______________________
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Rs. in Crore Equity Loan from GOI FINANCIAL PERFORMANCE : 14.24. NLC has been making profits since 1976-77. During 2004-2005, the Corporation earned a pretax profit of Rs. 1,756.68 Crore (Prov.). The Corporation has earned pretax profit of Rs.1078.66 Crore (Prov.) during 2005-2006 (up to December, 2005). Reserves and surplus as on 31.03.2005 was Rs. 6,001.47 Crore. 14.25. NLC has declared its dividend of Rs. 382.24 Crore (including distribution tax) for the year 2004-2005. 14.26. The sales turnover in 2004-2005 was Rs. 3,001.94 Crore against Rs. 2,806.09 Crore during 2003-2004. The sales turnover during 2005-06 (upto December, 2005) was Rs.2135.33 Crore (Provl.) as against Rs. 1,737.33 Crore during the corresponding period of last year. Product wise sales during 2005-2006 (Up to December 2005) is as under : (Rs. in crore) Product Lignite Power Others Total State Electricity Boards Dues: 14.27. Outstanding dues from the State Electricity Boards as on 30.12.2005 was Rs.680.81 Crore. (Provisional). MANPOWER : 14.28. The total manpower of NLC as on 30.12.2005 is indicated below : Category Executives Non Executive Workmen Total ______________________
(GOI portion)
1569.64 Nil
(including accrued interest)
Value (Provl.) 128.30 1962.67 44.36 2135.33
Technical 3,173 4,499 1,557 9,229

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Non- Technical 599 3,068 5,872 9,539
Total 3,772 7,567 7,429 18,768
INDUSTRIAL RELATIONS : 14.29. The Industrial Relations atmosphere in NLC signifies employee friendly attitude of the Management which shows greater care in dealing with Human Resources. The recognised Unions and Associations in turn are looking beyond their own problems to realise their responsibility to be more responsive to the needs of increasing productivity. RESERVATION : 14.30. NLC is following the reservation policy prescribed by the Government of India. All directives issued by Government of India in the matter of reservation in recruitment & promotion are being followed. A cell exclusively for SC/ST matters is functioning under a Liaison Officer at the level of General Manager to ensure that the reservation rules and guidelines for SC/ST are implemented properly. 14.31. The details relating to the percentage of reserved categories of employees as on 31/12/2005 are furnished below: Applicable Percentage of Reservation SC A B C Excl. Sweepers Sweepers Total WELFARE : Housing: 14.32. The sprawling residential township with a maze of roads, excellent drainage systems, waste disposal arrangements, water facility and other recreational facilities provides the perfect ambience for the employees and their dependents to feel comfortable, secure and the atmosphere of being well cared for by the Management. ______________________
Manpower position Total 3,216 556 11,660 3,257 79 18,768
Group
Available Percentage SC 19.90 20.18 21.89 17.16 73.42 20.88 ST 2.71 2.34 1.15 0.52 -1.34
ST 7.5 7.5 1 1
SC
640 112 2,550 559 58 3,919
ST 87 13 134 17 -251
15 16.66 19 19
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14.33. As high as 21,510 houses nestled in the green canopy of trees make NLC Township a place ecologically balanced and environment friendly to live in to achieve quality of work life. It is abound with facilities for quality education up to college level, medical care, recreation, religious needs and shopping. Medical Services : 14.34. NLC Hospital provides a wide range of Health Care Services to its employees, dependent population and other rural communities (over 3,00,000). The four broad areas of activity are as follows :i) ii) Operation of the General Hospital (369 bedded acute-care Hospital). Operation of 5 peripheral dispensaries to ensure better accessibility in the area of outpatient care to residents. Operation of community Health programme to help the surrounding rural population meet their basic medical needs. Eye Camps, Polio, Screening Camps and General Community Health Screening form part of this programme. During the year 2005-06, a number of medical camps were conducted which include a major Opthal Screening Camp for implanting IOL to selected rural patients with cataract problems. Operation of occupational health services to ensure optimal health, safety and well being of employees and first aid care at plant level.
iii)
iv)
Family Welfare: 14.35. NLC Hospital has been recognised as one of the best Medical Institution in the State for reforming sterilisations with zero failures. During the year 2005-2006, up to December, 2005, as high as 255 (prov) sterilisations were performed. EDUCATION : 14.36. The NLC township is teeming with over 34 schools and a college for meeting the educational needs of children of employees and children from nearby villages. Drawing support from participation of other institutions, NLC offers quality education with most of the children making appreciable grades at high school and plus two levels. 15 NLC managed schools have also come into the limelight in the recent years for achieving excellence in the school and college curriculum. NLC has also instituted number of scholarship schemes to harness the full potential of children.
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SPORTS : 14.37. NLC promotes programmes and facilities for development of sports among employees as well as students. This goal is best served by the development of sports stadium that houses facilities for conducting state and national level tournaments. Schools make best use of these facilities to give equal importance to sports activities that help the students achieve all round development. The Sports Control Board is behind planning sports activities and developing facilities to meet the growing needs for sports and leisure time games. CONCERN FOR SOCIAL WELFARE: 14.38. NLCs concern for social welfare is highlighted by its commitment to serve the cause in general and more particularly of physically, mentally and socially handicapped population of Neyveli and beyond through organisations such as Neyveli Health Promotion and Social Welfare Society and SNEHA Opportunity School. While the former caters to the specific needs of physically handicapped and destitute women through rehabilitation programmes, the latter offers timely succours to mentally retarded children in making them useful and productive members of the society. NLC has not only provided infrastructure facilities for the operation of these programmes but more importantly extends financial support for their sustained growth. Human Resource Development : 14.39. Training is the powerful tool which NLC utilises effectively to harness its vast human resource potential, manage their career development and plan for enriching their skills/professions in line with the technological advancement. The training complex with modern facilities organises various training programmes to make the employees update their knowledge. The demands for continuing education at shop-floor level are also fully met. To nourish managerial excellence, executives, professionals and skilled workmen are sent for training outside in premier training institutions in India and abroad. Training facilities offered by equipment manufacturers are also being utilised before installing new equipment / machinery. Details of training during 20052006 upto December 2005 are :Details In-house programme Deputation training within India Training abroad Total ______________________
April 2005 to December 2005 7,653 582 17 8,252
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ENERGY CONSERVATION :
Energy Conservation Measures taken

Mines Sector
MineI & IA $ $ Water pressure at surface level of the Mines is being monitored to minimize pumping of ground water and storm water. Variable Speed Drive has been introduced in the Main Slewing and major frictional mechanical elements of the BWE 1355, to avoid frictional loss and thereby save energy. Computerized Energy Management System has been introduced in 230 KV / 11 KV Sub-Station from 17.12.2004. Programmable Logical Controls (PLC) have been introduced in 2400 mm Conveyor DHCS for Rotor Step Control Circuit. In 2000 mm Conveyors, electronic timers have been replaced in the place of pneumatic timers in Rotor Control. PLC based control logic is also introduced in BWE 1193.
$ $
Power Sector Thermal Power Station-I One number of Russian Make Feed Pump and one number of Circulating Water Pump were replaced with an indigenous high efficiency pump. Dyno drives in the Raw Coal Feeders for speed control were replaced with Variable Frequency Drive in few Boilers. 6 Nos. of 243 KW Cooling Tower Fan motors were replaced with 200 KW high efficiency motors. Station Auxiliary consumption was contained to 11.41% against the norm of 12.0%, by taking up various energy conservation measures. Thermal Power Station-II The auxiliary power consumption of the Station was 9.78%. $ Supply of Cooling Water to Lubricating Oil Cooler (Unit IV to VII of Thermal Station-II) is being made from the service water during unit shut down instead of circulating water, resulting in saving of energy. Apart from installation of energy efficient lighting system, timers have also been provided for all critical
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locations. In Stage-I Units, by keeping the service air inter connection valve between Stage I and II in open condition, the number of instrument air compressors in operation, has been reduced from 3 to 2. IN HOUSE TRAINING PROGRAMME ON ENERGY CONSERVATION. 14.40. In house training programme on Energy Conservation is being conducted every year regularly to create awareness among the employees on energy conservation. 14.41. This year the programme on Energy Conservation was conducted on 11.04.2005, 23.05.2005, 13.06.2005 and 21.07.2005. Energy Management Programme was conducted on 24th, 25.10.2005. Energy Conservation Week is celebrated during December every year. Oil Conservation Week is also celebrated in co-ordination with Indian Oil Corporation every year to educate the employees about oil conservation measures that can be adopted to save precious oil. E-GOVERNANCE : Additional Nodes formation for Integrated Voice and Data Fiber Network: Actions were taken for establishing additional 62 Nodes in Mines area and Township area and integrate with the already established campus fiber network. Consultancy contract for this additional 62 nodes has been finalished and entered with M/s. Siemens Ltd. The offer from M/s. CMC Ltd. has been taken and final negotiations are in progress. Actions have been taken for the site preparation of 62 nodes formation. Centralised Attendance Monitoring System: Attendance Monitoring System has been implemented successfully in NLC Barsingsar Project Office during the last week of October 2005. All the employees posted in Barsingsar Project are covered. The punching system at Barsingsar Project is connected with the Central Attendance Monitoring System Server installed at Corporate Office, Neyveli. Online FAS, PFAS, PIS and MIS: A 64 Kbps leased line WAN connectivity was established at Barsingsar Project Office during the last week of April 2005. Five Numbers of Online terminals, Printers and Cheque printers are installed and connected with the Central Server at Corporate Office. Personal details through NLC Intranet website: Facilities have been created in NLC Intranet website to view the personal details against user name and
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password. An employee can view his personal details including payroll, loan details, etc. from any PC connected with the NLC campus LAN. It is planned to provide this information access through Information Kiosks which will be positioned at each unit. Workflow application development and implementation: Workflow applications have been developed, tested as per the present working conditions and ready for implementation at Corporate Office. All the users were trained on each application with a real time hands on session. It is planned to integrate strong bio-metric authentication system with this work flow applications. Actions were taken to get the approval for procuring and installing the necessary hardware and software required for the strong user authentication system. Online System for FAS, PFAS, PIS and MIS: The following software developmental activities have been taken up for implementation: Short Term Deposit Management System Implemented during July 2005 Implementing PF Trust accounting Implemented during October 2005 Death Relief Fund Subsystem Implemented during August 2005 Automation of Incumbent Register Implementation under progress Group Insurance scheme automation for Car & House Building Advance Implementation under progress Central Data Centre formation through Consultancy cum implementation: It is planned to integrate the various online database system and to form a Central Data Centre with DR futures incorporating Cert-In guidelines for security. The Consultant will study the existing online systems and propose the Central Data Centre architecture with tender document specifications. Based on that tender will be floated and implementor will be fixed. Implementation of Online Accounting of Medicine System for NLC_GH: Approval had been taken for the implementation of Online Accounting of Medicine System (OAMS) through LTE. Tender has been floated and approval Note submitted for placing Purchase Order. Implementation of Central Database for AMS: Currently the Attendance Monitoring System Server is working on two database concepts one at the
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unit level and the second at the Corporate level. Actions have been taken to integrate the two database into a central single AMS database and to port it on a high end server to meet the work load. Purchase Order is placed for the database integration and Central Server procurement. In-house ID cum punching card preparation for AMS: The in-house punch card preparation system is procured, installed and commissioned during August 2005 at NLC-Photocell. All the future ID cum punch card will be prepared by this in-house facility. Implementation of Biometric based Attendance Management System: Procurement action has been taken to convert the existing Bar Code based system installed at Corporate Office into Biometric (Finger print) based Attendance Monitoring System. Tender processing is in negotiations stage. Purchase Order is placed for the supply and implementation of Biometric finger print based Attendance Management System for the new upcoming TPS-2 Expansion unit.
AWARDS : 14.42. The details of Award received by NLC during the period April 2005 to December 2005 is furnished below ! Corporate Social Responsibility Award from Help Age India.
MOU Ranking: 14.43. NLC is a MOU signing PSU and its MOU rating for the year 2004-2005 based on provisional data is Excellent. GENERAL : ! ! A new Death Relief Fund Scheme, with equal contribution from employees has been introduced in May05 Parliamentary Consultative Committee attached to the Ministry of Coal held a meeting in Neyveli on 14th June 2005 on the agenda of Role of Neyveli Lignite Corporation in Energy Sector, Frontier, Technologies in Coal Sector and Making Coal India Globally Competitive. Minister of State for Coal and Mines Dr. Dasari Narayana Rao and Members of the Consultative Committee, Secretary Coal, CMD NLC and Chairman Coal India Limited attended the meeting.
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! !
NLC has implemented Employees Pension Scheme 95 and distributed the First Pension Payment order to 25 retired employees of NLC in July05. The 59th Independence Day was celebrated on 15th Aug. 2005 in a grand manner. On this occasion, Special Awards, viz. Long Service Awards and Family Planning Awards to the employees, Gallantry Awards to Security, Vigilance and Sports personnel were distributed. Artificial Limbs to the physically handicapped persons were also distributed. Programmes of variety entertainment were performed by school children. The Companys 49th Annual General Meeting was held at Chennai on 28th September 2005. Dividend of 20% was declared to the shareholders for the year 2004-2005.
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CHAPTER XV
INTERNATIONAL CO-OPERATION
FOREIGN COLLABORATION 15.1 To meet country's growing demand for coal, foreign with the advanced coal producing countries are considered for: collaboration
(a) Bringing in new technologies both in underground and opencast sectors for efficient management in the coal industry and skill development and training etc. (b) Seeking bilateral funds for import manufactured in the country. (c) Bringing foreign requirement. of equipment, which are not
financial assistance
to meet the investment
15.2 Keeping these objectives in view, Joint Working Group on coal had been set up with France, Germany, Russia, Canada, Australia and China. Ministry of Coal is also the nodal Department for the Joint Commission with Poland. The priority areas, inter-alia, include acquisition of modern underground mining technology, introduction of high productive opencast mining technology, working underground in difficult geological conditions, fire control and mine safety. Training of Indian personnel as well as assimilation of the technology are an important consideration. With the liberalization of the economy, greater thrust is being given to get the foreign investments /assistance on the basis of cost competitiveness. 15.3 The latest policy pursued by CIL is to encourage technology up gradation through Global Tender. Bilateral co-operation, although limited, continues to play an important role for search of new technologies and process improvement. Global tender approach has been used towards introduction of high productivity Continuous Miners at SECL and WCL. Bilateral co-operation mode has been adopted for the introduction of PSLW mining at 3 mines in SECL. ACQUISITION OF COAL PROPERTIES ABROAD. 15.4. CIL has proposed to set up a new subsidiary for foreign ventures to be registered as Coal India Videsh Limited (CVL). The Memorandum / Article of Association of the proposed subsidiary has been approved by CIL Board in its 219th meeting held on 8th January, 2005 and forwarded to Ministry of Coal for necessary ______________________
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approval from the Government. The company would be registered subsequent to Government approval. However, in order to perform the assignments relating to setting up of CVL and taking forward the intention of acquiring the coal equities abroad, a dedicated Task Force has been created in Coal India Limited in form of Coal Videsh Department at Coal India Limited (CIL) Headquarters, Kolkata. The Department is headed by a Chief General Manager (Mining) and comprises of multidisciplinary team having mining engineer, geologist, MBA & Finance professionals. This Department reports to Director (Tech), CIL and performs key assignments such as: a) b) c) d) formulating Action Plan as per the suggestions of the Coal Videsh Committee; obtaining details of opportunities outlined in the Committee report as well as close liaison with Indian Missions abroad, examining the opportunities and prioritizing them, and visiting the destination countries to carry out on-site technical, financial, commercial and legal due diligence.
15.5 The team of Coal Videsh comprising of four officers visited Mozambique, Zimbabwe and South Africa in October-November, 2005 with a view to explore the possibility of acquiring stakes in operating mines / new projects under implementation and also in green field coal blocks. 15.6 During their visit the team also assessed ground realities by discussion with relevant government departments/coal companies, visited operating mines and Greenfield areas under development, gathered first hand information on multitude of issues pertaining to regulations and procedures for initiating business in respective countries. in order to frame the short term (immediate), medium term and long term strategy for entry, consolidation and establishment of CILs foreign venture. CO-OPERATION WITH FRANCE 15.7. The 5th Indo-French Working Group on Energy was held in New Delhi on 29th November, 2005. Representatives from CIL and CCL attended the meeting. 15.8. During the meeting, the Indian side requested co-operation from the French side on the following issues : a) Environment and waste Management, b) Coal Mines closure, c) Coal mines fire and technology up-gradation. d) Fly ash utilization, e) Clean coal technology. ______________________
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CO-OPERATION WITH U.K. 15.9 In January, 1997 an Indo-British Coal Forum (IBCF) was established to foster greater cooperation between the two countries in coal sector. The Forum provides a platform for mutual consultations and cooperation between the coal industries of both the countries under the auspices of the Govt. of the India and U.K.. The activities which are envisaged under the MOU include sharing of latest know-how technology, organization of meetings for exchange of information, identification of suitable projects as well as methods of funding, introduction of compatible technology for more efficient management in Indian Coal Industry and skill development etc. Eleven meetings have been held till now in pursuance of these objectives. Eleventh meeting of IBCF was held on 26th November, 2004 at Kolkata. For the next meeting mutually convenient date and venue will be decided in due course. CO-OPERATION WITH POLAND 15.10 Prior to January 14, 2004, Ministry of Coal was acting as the nodal Ministry for Indo-Polish Joint Commission on Economic, Trade, Scientific and Technical Cooperation. The last meeting (14th) of the Joint Commission was held in January, 1996. The Commission has 4 sub-committee on (1) Coal Mining and Power (2) Trade (3) Industry and (4) Science and Technology. 15.11 The Projects which were taken up earlier in the coal sector with Poland have since been completed. The Polish Coal Industry has offered their expertise in underground mining, Washery construction, Thermal Power Generation, mine safety and rescue. For furthering Indo-Polish Cooperation in the coal sector, it was decided by both sides to form a Working Group for coal sector. Two meetings of the Indo-Polish Working Group on Coal have so far been held and last meeting was held on 3-4th September, 2002 in New Delhi, India. 15.12 Ministry of External Affairs vide their D.O.No.184/FS/2004 dated January 14, 2004 has designated Ministry of Commerce and Industry (Department of Industrial Policy & Promotion) as nodal agency for Indo-Polish Joint Commission for Economic, Trade, Scientific and Technical Cooperation from Indian side. A meeting with the Polish delegation was held on 22nd November, 2004 in the Ministry of Coal. For the next meeting mutually convenient date and venue will be decided in due course. CO-OPERATION WITH RUSSIA 15.13 The erstwhile USSR was assisting CIL in the implementation of the Nigahi Opencast Project (Northern Coalfields Limited), Khadia Opencast Project (Northern Coalfields Limited), Jhanjra Underground Project (Eastern Coalfields Limited). The 126 ______________________
cost of the imported equipment for these projects was funded from the credit, while the payment for deputation of experts for rendering technical assistance was made in Indian Rupees under the Bilateral Trade Plan. 15.14 India-Russian Working Group on coal has so far met 9 times. Master Planning of Talcher, lb-valley and Korba Coalfields have been completed with Russian collaboration. 15.15 The cooperation between CMPDI and GIPROSHAKHT has been further strengthened by renewal of MOU between these Institutions and the same is going to be established between CMPDI and VNIMI. 15.16 Russian side has informed that they are in a position to consider mining of thick steeply inclined Indian coal seams on the basis of physiochemical loosening through a separate agreement if Indian side is interested and provide the necessary details of identified coal deposits. Indian side has desired to have more details of these methods. The last meeting of the working Group on Mines and Metallurgy was held in Moscow on 26-27 October, 2005 and following items were discussed:% % % % % %
Working of Deep Mining, Memorandum of Understanding (MoU) between CMPDI & VNIMI, Russia, Renewal of MoU between CMPDI and Giproshakht, Russia, Joint Venture on Magadh and Amrapali of CCL, Russian side offers for Indian Investment in Russia, Training.
CO-OPERATION WITH MOZAMBIQUE 15.17. Mozambique is keen to have an institutional framework through which continued technical co-operation and mutual assistance can be established in coal sector between the two Govts. Singareni Collieries Company Limited (SCCL), Central Mine Planning & Design Institute Limited (CMPDIL) and Neyveli Lignite Corporation (NLC) have offered to extend their services in exploration, preparation of plan / feasibility report / project report, survey, mining methods and in erection, commissioning, operation and maintenance of thermal power stations. 15.18 A Joint Working Group is being formed to look into the possibility of energizing the Joint Working Group with Mozambique so that investments opportunities could be translated into business ventures. Department of Economic Affairs also examine the possibility of including Coal Mining as a part of Indian Development initiative acquisition of mining concession of coal in Mozambique. Further modalities are being worked out in Consultation with MEA. ______________________
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CO-OPERATION WITH KAZAKHSTAN 15.19 A proposal has been received from embassy of the Republic of Kazakhastan regarding various projects for Industrial & Innovation development of Kazakhstan including coal projects. CO-OPERATION WITH CANADA 15.20 The meeting of Indo-Canada Working Group on Coal was held in Canada during 24th 30th June, 2003. Indian delegation led by the then JS&FA and CMD, ECL discussed over Rajmahal Expansion Project of ECL during the meeting. CO-OPERATION WITH CHINA 15.21 A 14 member Chinese delegation led by Mr. Hou Shenjian, Vice President of China National Administration of Coal Geology visited Ministry of Coal on 27th October, 2005. Secretary (Coal) met the delegation and briefly interacted with members, followed by formal presentation on coal sector in India by Chairman-cumManaging Director, CMPDIL. The presentation covered areas such as coal exploration, demand and supply, emerging importance of coal as primary fuel source etc. Thereafter, both sides interacted and exchanged information relating to coal production, technology, prospecting, exploration etc. Useful information was exchanged and inputs obtained would be useful in future interaction/exchange. 15.22 The 10th meeting of the Indo-China Joint Working Group on Coal was held during 10th 11th November 2005 in Shanghai, PR China. The Indian delegation was led by Shri P.C. Parakh, Secretary (Coal) and the Chinese delegation was led by Mr. Zhao Tiechui, Administrator of State Administration of Work Safety (SWAS), PR China. The following areas were discussed in the meeting: i) ii) iii) iv) v) vi) Exchange of coal mining technology, equipments Coal mine safety. Co-operation in Coal Bed Methane, Underground Coal gasification and Coal liquefaction. Co-operation in capacity building. Promotion of investment opportunities. Retraining and rehabilitation of mining workers.
15.23. The 8th Task Force meeting of Indo-China Joint Working Group on Coal was also held on 10.11.2005 in Shanghai, PR China.
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CO-OPERATION WITH GERMANY 15.24. 15th Session of the Indo-German Joint Commission on Industrial and Economic Co-operation was held in New Delhi on 4-5 April, 2005. 15.25. In the concluding session of the Indo-German Joint Commission, held in New Delhi on 5th April, 2005, Finance Minister of India highlighted (a) the need for bringing in clean coal technologies from Germany to India, and (b) collaboration in the area of coal bed methane between the two countries. The issues would be taken up for discussion with the German side during the next meeting of the Indo-German Working Group on Coal. 15.26. Indo-German Annual Consultations on Bilateral Development Co-operation were held on 10th May, 2005 in New Delhi. 15.27. The Fourth Meeting of the Australia-India Joint working Group on Energy and Minerals (JWGEM) took place at New Delhi on 8th and 9th June, 2005. The following points were agreed:1. An Indian delegation would visit Australia to discuss energy market reform and that both countries would continue to share information on energy market reform. Discussions would take place between the two countries on the possibility of holding a coal and mining Australia-India Forum. The Australian side agreed to take forward the proposals for joint R&D activities. The Indian side welcomed the Australian proposal for investment in small hydro projects in India. It was agreed that community development in Mining areas and mine closure planning in India and Capacity building of ore dressing division of Indian Bureau of Mines will be discussed as part of the proposed Australia India Coal and Mining Forum. The Australia High Commission in New Delhi and the Ministry of Mines will provide a calendar of events and activities on mining and energy between India and Australia, and to be available on-line. Australia would bring a delegation to India to inform on acreage release and exploration opportunities. Further the Australian side proposed a joint study to analyze the gas market in India and opportunities and impediments relevant to Australia and India in LNG trade. It would be a partnership between Australian resources organisations and equivalent Indian research organisations.
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2. 3.
4.
5.
6.
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India Australia Coal and Mining Forum 15.28. In pursuance of the decisions arrived at in the fourth meeting of the AustraliaIndia Joint Working Group on Energy and Minerals, India Australia Coal and Mining Forum was held in New Delhi on 1st and 2nd February, 2006. The Forum was inaugurated by the Minister of State for Coal and Mines and the Parliament Secretary to Minister for Industry, Tourism and Resources, Government of Australia delivered the key note address. The Forum was attended by leading experts, professionals and companies engaged in mining industries from the two countries. The private sector companies who have been allocated blocks for captive mining also attended the Forum in big numbers. This Ministry through this Forum brought together the Public and Private sector companies operating in coal sector in India to interact with the representatives of the mining industry and Government of Australia. 15.29. The two sides discussed the issues relating to cooperation in the fields of coal mining, methane, beneficiation, clean coal technologies, waste management and non invasive exploration techniques. The emerging technological issues in the field of equipment selection, processing of coal, mine closure, planning and design of geologically complicated deposits were also taken up for discussions. The Australian side explained the investment opportunity in coal mining industry in Australia and also invited the Indian companies to explore the investment opportunities for Indian companies in Australia. The two sides identified areas of mutual interest and cooperation in the fields of technology and business in coal mining industry.
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CHAPTER XVI
PROGRESSIVE USE OF HINDI
16.1 Ministry of Coal along with its all Subordinate offices/Companies and Autonomous Body continued its efforts for propagating and spreading the progressive use of Official Language Hindi during the year 2005-06. This Ministry is committed to increase the progressive use of official language. Instructions received from Department on Official Language, Ministry of Home Affairs and Committee of Parliament on Official Language are circulated regularly to the officers/sections of the Ministry as well as to the Subordinate Offices/Companies and Autonomous Body under its control to ensure implementation of the statutory provisions of O.L. policy of the Union and to achieve fully the targets fixed in the Annual Programme issued by Department of Official Language. 16.2 In order to increase the progressive use of Hindi in day-to-day official work, many incentive schemes have been introduced by the Ministry for officers/employee, and special appeal/circulars are also issued from time to time in this regard. With a view to facilitate noting and drafting in Hindi, bilingual standard drafts, dictionaries, help books etc. have been distributed among all officers/sections of the Ministry. 16.3 The Ministry of Coal is fully computerized and bilingual facilities for doing work in Hindi have also been provided with the PCs to all sections of the Ministry. Besides, the Website of the Ministry has been prepared in bilingual form (Hindi/English) and it is updated from time to time. 16.4 The meetings of " Official Language Implementation Committee" are being organized regularly in the Ministry and all subordinate offices/ companies and Autonomous Body under its control and emphasis is given on increasing progressive use of Hindi in these meetings. 16.5 With a view to create consciousness and to accelerate the use of Hindi as Official Language in official work in the Ministry and the subordinate offices/companies and Autonomous Body under its control, Hindi month, Hindi fortnight/Hindi week was orgainsed in the month of September, 2005 and Officers/Employees who did excellent work in Hindi were also awarded. ______________________
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16.6 The Ministry orgainsed 'Hindi Pakhwara' from 7.9.2005 to 21.9.2005. During this fortnight, various competitions relating to promotion of Hindi in official work were organised. Secretary (Coal) gave away cash award and certificates to the winners in a function organized on 31.10.2005. 16.7 The meeting of High Power Hindi Salahkar Samiti of the Ministry was convened on 18th November, 2005 under the Chairmanship of Hon'ble Minister of State for Coal & Mine. During this meeting, Hon'ble Minister released the 5th issue of inhouse Magazine 'Koyal'. The members of the Committee appreciated the magazine and suggested to make it more meaningful. Besides this, Subordinate offices/Companies under the Ministry continued to bring out their Hindi publications Viz 'Khanan Bharti', Vasundhara', 'CCL News', 'Pratibha' and 'Brown Coal' which play an important role in propagation of progressive use of Hindi. 16.8 With a view to remove the hesitation of officers and employees to do their official work in Hindi, Ministry has organised Hindi workshops in which officers and employees participated in large number. The Ministry and its subordinate offices/PSU companies are imparting training in Hindi Language, Hindi Stenography and Hindi Typing under Hindi Teaching scheme by nominating the employees. 16.9 In order to increase the progressive use of Hindi in Coal companies, Ministry has notified some regional offices of Coal Companies under rule 10(4) of the Official Language (Use of official purposes of the Union) Rule, 1976. 16.10 During the year under review, Coal companies under the Ministry were inspected with a view to review the position of compliance of Official Language Act and rules made there under and Annual Programme. It was advise to make concrete efforts for rectifying short-coming noticed during inspection.
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CHAPTER XVII
PROGRESS OF INFORMATION TECHNOLOGY IMPLEMENTATION
17.1 Information is Power. New technologies usher in new ways of information processing and dissemination. The year 2005-06 witnessed many landmark egovernance initiatives. Concerted efforts have been done with the aim to provide quality and prompt services in the Ministry of Coal. The Ministry is keen to go ahead for development of ICT based applications especially in the areas which are citizen centric in nature with a view to enhance transparency and efficiency. The growth of Information Technology has provided the infrastructure whereby information on the governments policies and practices can readily be accessed by citizens with ease and gradually bridge the digital divide that exists in Society. It is the beginning of reengineering of government processes and capacity building for planning and implementing e-governance projects as well as to make a complete transparent system. 17.2 The Ministry of Coal has focused on building up the IT infrastructure within the Ministry with the following objectives: Improve workflow, work management and monitoring Assist in analyzing, decision-making and scheduling through Management Information Systems (MIS) Storage of data, analysis and handling of databases Provide Graphical User Interface (GUI) based environment LAN for sharing the resources among users Networking between Ministry of Coal and constituent units. Simplify dissemination of information to public and make it interactive (eGovernance) Train all personnel in making most of this technology 17.3 The Ministry has provided Windows based PCs to all officers, personal staff and sections. A high speed Local Area Network (LAN) is functioning in the Ministry. All PCs along with servers are put on LAN to provide interconnectivity, Internet facility and access of the applications from the server. The office of this Ministry situated in Lok Nayak Bhawan has also been provided LAN with Internet and Email facilities. 17.4 An IT based Computer Centre, set up by National Informatics Centre (NIC) is
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operational in the Ministry which is equipped with latest Servers, Client machines for providing Internet and NICNET facilities for local and global connectivity. 17.5 A Web Site of Ministry of Coal in English and Hindi is operational which has been created by the Ministry and is being hosted at NIC. It provides details of organizational setup of the Ministry, its working, subordinate offices, policies, annual reports, publications, statistical data / information on functional key parameters. (The Web Site also contains all the important information in line with Right to Information Act, 2005.) Another web site named as "Web of life-Mines Safety" has been created for information related to Mines Safety. A link has been provided in the main web site for its access. Various informatory content has been hosted on the website for dissemination to the prospective consumers and customers of Coal and various Forms have been provided for downloading by the consumers/customers. 17.6 The Ministry has converted all relevant Acts / Rules / Notifications / Orders etc into electronic form and hosted on the web site for easy access and dissemination to public through the web site. 17.7 A bi-lingual Electronic Notice Board has been implemented by NIC in the Ministry. The system is used to display various issuances within the Ministry at the individual's PC. This has been a step forward in implementing Less Paper office. 17.8 The Ministry has taken steps to implement IT in their day-to-day working. The official correspondence has been started being done through E-mail to expedite advance actions. Senior officials of the Ministry have been provided with Appointments and Task Monitoring System developed by NIC. The system is used for on-line access of the appointments/engagements of self and also of other officers. The system is used for on-line communicating the Tasks assignments and action taken against the tasks. 17.9 The official diary and file movement activities have been automated using the Office Procedure Automation Package (OPA) developed by NIC. This has streamlined file and receipt tracking in the Ministry and has become an effective monitoring tool for reducing pendencies at all levels. Searching for any file and receipt is just a click of mouse button now! With the implementation of the Time Bound files and receipts Monitoring System and VIP/MP reference Monitoring System, Ministry has significantly brought down the pendencies at all levels.
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17.10 The Ministry has integrated various IT services, facilities and applications through an intranet based Portal for Ministry of Coal. This portal is a single window based covering a plethora of useful applications like: Coal Notice board, Incumbency MIS, Time-bound files and receipts Monitoring, VIP/MP Reference Monitoring, Tour-Leave Details of Senior Officers, GPF Details, Income Tax Calculation, Payslips generation, Pending Bills Alerts, Leaves Details, Complaint Monitoring, Production-Despatch-Stock MIS. The Portal also provides link to various useful Forms for download, various guidelines, access to applications such as OPA and access to important references. Ministry has also planned to develop and implement various workflow applications embedded with Digital Signature Certificates to further streamline various work processes to achieve transparency, accountability and efficiency. 17.11 Ministry has developed and implemented a system for disbursement of monthly salaries of employees through Electronic Clearing system of RBI. The salaries are transferred to the respective desired accounts of the employees directly from the Bank. 17.12 Board Level Appointments monitoring system has been implemented in the Ministry to on-line monitor the status of vacant posts at Ministry as well as at Coal Company level. The action taken is regularly updated and current position is displayed for senior officers to view. The system is used to access the information on future vacancies to enable initiating appropriate actions in the Ministry in advance. 17.13 Priority list generation system on applications for coal linkages by consumer applicants has been implemented in the Ministry to systematize the information from the applicants under different categories. It helps in generating various reports based on the date of application. The system has helped the Ministry in implementation of a transparent mechanism to prioritise the received applications for linkage of Coal. 17.14 The integrated CoalNET Application software developed on 3 tier architecture with Oracle database at the back end, application server at the middle and the browser at the front end, has been implemented at Coal India Ltd and Subsidiary Headquarters under LAN environment. Implementation of the software is selected areas of subsidiary companies are in progress. On completion of implementation, it will bring uniformity of software across Coal India Ltd. This will facilitate faster availability of data at the subsidiary head quarters.
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17.15 It comprises of Voice, data and Video Conferencing systems in an integrated manner covering Coal India Headquarter, Subsidiary Headquarter and Ministry of Coal, New Delhi. SCPC DAMA based V-SAT equipments have been installed at Coal India Ltd. Headquarter, Subsidiary Headquarter and Ministry of Coal. The system is in use for voice, video conferencing and data communication. Subsidiary companies have drawn up its data communication scheme for establishing linkage between its areas and subsidiary headquarters and procurement is in progress. It will facilitate quicker data transfer from subsidiary areas to its headquarter for updation of database and availability of information.
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CHAPTER XVIII
VIGILANCE ACTIVITIES AND ACHIEVEMENTS
VIGILANCE SET-UP 18.1. The Ministry of Coal exercises superintendence and supervision over the vigilance administration of 10 Public Sector Undertakings and one autonomous body under its jurisdiction as well as over the Ministry staff. The vigilance set up of the Ministry is headed by Joint Secretary (Coal)-cum-Chief Vigilance Officer who is assisted by a Director, an Under Secretary and a Section. The vigilance wings of Coal India Limited, its subsidiaries and Neyveli Lignite Corporation are headed by full time Chief Vigilance Officers. The Coal Mines Provident Fund Organisation (CMPF) has a part-time CVO. These units have been structured in conformity with the guidelines of Central Vigilance Commission and commensurate with the organisational requirements. The Vigilance set-up of CIL, its subsidiaries, NLC and CMPF is given in Annexure-XIII. 18.2. Being the watch-dog of Coal and Lignite PSUs, the Ministry pays due attention to streamlining the procedures and practices prevailing in these organisations so as to make their working more transparent and systematic thus minimising chances of corruption. 18.3. The Ministry of Coal monitors the work of Vigilance Departments of Coal India Limited, its subsidiaries, Neyveli Lignite Corporation and Coal Mines Provident Fund Organisation. The Vigilance Department of CIL also coordinates the activities of the subsidiary vigilance wings and also acts as a nodal agency for compiling information/statistics, etc. for the Ministry of Coal and Central Vigilance Commission. The Vigilance Departments also do liaisen with the Central Bureau of Investigation and other anti-corruption agencies and advise the Chief Executives of coal and lignite companies on all aspects of preventive and punitive vigilance. VIGILANCE AWARENESS WEEK 18.4. A Vigilance Awareness week was observed from 7th to 11th November, 2005 in the Ministry of Coal, CIL, its subsidiary companies, NLC and CMPFO. As a part of observance, a pledge was administered to all public servants for maintenance of integrity, transparency and eradication of corruption from all walks of life. Banners/posters on Vigilance Awareness Week were displayed.
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18.5. On 08.11.2005, the Vigilance Department of CIL(Hqrs.), Kolkata organized a session with the consumers, customers and coal traders purchasing coal from CIL, through e-auction. A group discussion on Audit Vigilance Interface was organized by the Vigilance Division of CIL on 09.11.2005 in which Addl. Dy.Chief Auditor General, Government of India and Addl. General Manager, Metro Railways were among the dignitaries who were invited for the discussion alongwith Internal Audit Department, Finance Department and Vigilance Department of CIL. The Vigilance Division of CIL also arranged for a panel discussion on Review of Conduct, Discipline and Appeal Rules of CIL at Indian Institute of Coal Management, Ranchi. 18.6. In BCCL, an essay competition for Executives on Corruption is the greatest impediment in the development of India and for Non-executives on Bhrastachar Sangathan ka Binashak Hai was organized. Prizes were given to three best participants in each group by CMD, BCCL. A Consumer Education Programme for Coal Customers was organized under the Chairmanship of CVO, BCCL on 09.11.2005. A programme on Discipline & Disciplinary Proceedings was organized on 10.11.2005. A comphensive programme was also organized by a Group of Areas of BCCL on the subject Common irregularities and shortcomings observed by Vigilance Department. This was attended by GMs /HODs of all the concerned Areas. A debate on the topic Corruption is the greatest impediments in the Development of India was organized for the school students. Prizes were sponsored by the Vigilance Department of BCCL. 18.7. In WCL, all departments dealing with public conducted workshop towards education of customers/clients/contractors/suppliers. In some areas of WCL, essay, elocution, slogan and quiz competitions were organized. 18.8. On 08.11.2005 a workshop on Operation of Depot Agreement was held wherein alongwith NCL executives, the depot agreement holders and rate contract holders participated. A Consumers Conclave was also held on 11.11.2005. 18.9. In CCL, the week started with taking of pledge by all the employees. Banners and posters containing thought- provoking slogans were displayed in all the units/offices. During this week, CCL Vigilance organized workshops on Preventive Vigilance in different areas of CCL wherein Directors, CVO and senior officials of CCL participated. One day workshop in IICM, Ranchi was organized on 10.11.2005 to discuss the changes in CDA Rules of CIL where in CVO, CIL, CVO, CCL, Director(Personnel), CCL and other officials from different subsidiary companies of CIL actively participated.
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18.10. In MCL, on 08.11.2005 an interactive session with various contractors was arranged by General Manger (E&M) and General Manger, (TC). The General Manager (MM), General Manger (S&M) and General Manger (Civil), MCL HW interacted with suppliers, customers and contractors on 9th , 10th ,11th November, 2005. 18.11. In ECL, workshop on Service Jurisprudence in Personnel Management was organized between 10.11.2005 and 12.11.2005. 18.12. In SECL, this years programme was specifically oriented towards customers, suppliers and people who interact with the Company. One poster comprising of several visual clippings circulated by CVC under its book-let Citizens Guide to Fight Corruption was displayed. The pledge was administered by CMD, SECL in SECL Hqrs. A large photograph of Sardar Vallabhbai Patel was unveiled and lamp for inauguration was lit by the Chief Guest, Dr. P.K. Mishra, IAS(Retd.), formerly Secretary, Ministry of Coal. Essay competitions were held for employees as well as school children. A compendium of recent CVC circular titled Integrity was circulated. A booklet Jagriti enumerating various cases of common irregularities with Dos and Do not for employees was published and circulated by SECL. 18.13. In Neyveli Lignite Corporation, a printed booklet on compendium of circulars from CVC was released. An interactive session between the Chief Vigilance Officer and senior executives was held on 08.11.2005. Various case studies involving vigilance angle were discussed to increase the awareness. On 10.11.2005, an interactive discussion with various firms/contractors alongwith the executives of various units with the CVO was held. This week was concluded with valedictory function on 11.11.2005. PREVENTIVE VIGILANCE 18.14. In order to bring transparency, uniformity and streamlining of the procedures and practices in sensitive areas of working of the PSUs, the following measures were taken for system improvement:a) In pursuance of directives from CVC, all the Subsidiary Companies have implemented publication/uploading of tender documents in the website. b) Quarterly review of disciplinary proceedings pending for more than one year. c) Identification of sensitive departments and transfer of personnel occupying the sensitive posts for a long period. d) Surprise checks to unearth the intentional lapses, manipulations, malpractices, dereliction of duty etc. e) Workshops are conducted by CIL Vigilance and guidelines framed/revised with a view to preventive vigilance. ______________________
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f)
Vigilance inspections in corruption prone areas of the industry like the diesel dispensing units in the open cast mines, explosive consumption, civil works, road sale of coal and procurement of spares have been intensified.`
Guidelines are issued from time to time in different branches of functioning of coal companies to bring in more transparency and bring down areas of discretion or patronage. 18.15. An exercise has been carried out in the Ministry also to identify the sensitive positions. Action has been initiated to rotate the officials working in sensitive posts and as part of this exercise, some transfers have since been effected. SURVEILLANCE AND DETECTION 18.16. All PSUs under the administrative control of Ministry of Coal identify and prepare the Agreed List of Suspected Officers and List of Officers of Gazetted Status of Doubtful Integrity in consultation with the CBI. 18.17. The pending cases pertaining to investigations, penalty proceedings etc. of CIL (Hqrs.) as well as the Subsidiary Companies are separately reviewed by CVO, CIL every month with the officers of the Vigilance Division, CIL(Hqrs.) and the CVOs of the CIL Subsidiaries respectively. This is being done in order to reduce the pendency of such cases. 18.18. In ECL, unsystematic purchase procedure at Barmuri OCP of Mugma Area was detected and order for immediate systematization approved by CMD. Complete overhauling of the system of issuance and consumption monitoring of HSD at J.K.Ropeways was suggested by the Vigilance Department and approved by CMD. 18.19. Vigilance Department of BCCL conducted 79 surprise inspections/checks of sensitive areas which resulted in initiation of investigation in 5 cases. Out of said 5 investigation cases, two have resulted in initiation of major penalty proceedings and 2 cases have resulted in initiation of minor penalty proceedings. 18.20. MCL Vigilance noticed that in road sale centre of coal in one of the Projects (BOCP), the computer was not programmed to have system of automatically showing balance quantity to be delivered to the party against the delivery order. It was also found that money was being collected by outsider in the name of Truck Owners Association through printed coupons from the truck drivers near road sale centre. The GM of the Area has been advised to stop forthwith such unauthorized money collection on whatsoever pretext. He has also been advised to have suitable computer programme to indicate the balance quantity to be delivered to the party automatically.
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18.21. During the course of inspection of road sale centre of coal of one of the Projets (SOCP), it was found coal stock for lifting road sale coal and the coal handling plant for rail dispatch are at close proximity without any means of separation, either a wall or a fencing. The route for transportation of coal from the SOCP as also from the other nearby mines to the railway siding is the same as that of road sale trucks making it very difficult to have proper check of road sale trucks against smuggling at the check gate as the coal transportation trucks for siding are large in numbers. This had scope for loading of crushed coal i.e higher quality coal by road sale party (trucks) against delivery order for ROM, excess loading/lifting, smuggling of coal besides other corrupt practices. The system/procedure for deployment of personnel and weightment of tare and gross weight of trucks were found to have scope for improvement. The Management has been advised to take immediate action for having ROM coal stock and route exclusively for road sale centre/trucks independent of CHP and of road for siding and also bring about other improvement towards preventing smuggling of coal and other corrupt practices. 18.22. In WCL, inspection on CTE pattern has been conducted in order to improve the working of various Departments and total thirteen such inspections have been carried out from January, 2005 to November 2005. 18.23. In NCL, CTE type inspections were carried out in respect of ( a) approach road (Phase II) to Krishnashila Open Cast Mine at Bina Project whose estimated cost is Rs. 1,16,65,859.55 and (b) supply order of Power cable (11KV Grade) has been done at an estimated cost of Rs. 188 lakhs. The entry process from the initial stage of inviting tenders to the final stage of releasing the payment was examined and measures for system improvement were suggested. 18.24. In NLC, 45 surprise checks were done during 2005-06 upto November 05, out of which 25 have resulted in vigilance cases. 18.25. As per CTEs instructions on sanctioning of Mobilisation advance with interest for Project Monitoring. NLC has decided, at present, to charge an interest of 7 % p.a towards the mobilization advance. 18.26. The Management issued instructions on various steps to be taken to rectify the lapses in the reconditioning of belts and maintenance of equipment in the Belt Reconditioning Plant. 18.27. With regard to common procedure regarding inclusion of Service Tax in the Tendering process of work contract, the management issued the following instructions : ______________________
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(i) (ii)
service tax will not be included in the estimates and need not be considered for tender evaluation; service tax wherever applicable shall be reimbursed based on documentary evidence and regulated on the basis of rates in force from time to time.
PUNITIVE ACTION 18.28. Complaints received from various sources against the officials of the Ministry and PSUs were processed in the Ministry. Based on the findings, departmental proceedings have been initiated during the year 2005-06 by the Ministry against a Board level Executive of coal companies. In two cases, penalties have also been imposed. 18.29. A brief of the cases taken up for investigation, departmental inquiry, cases in which penalty was imposed, number of officials placed under suspension, number of regular cases registered by CBI and number of officials transferred from sensitive posts by the coal companies, NLC and CMPF is given in Annexure-XIV. IMPORTANT ACHIEVEMENTS 18.30. Some of the important achievements of the Vigilance Departments of the Ministry and Public Sector Undertakings during the year 2005-2006 were as follows:(i) In compliance with orders of Honble High Court of Delhi and directives of the Ministry of Coal, identification of employees who have entered into service of Coal India Limited and its subsidiaries on the strength of ST Certificates, has been started since June, 2005. All the subsidiaries have been requested to verify the authenticity of the certificates under intimation to the Ministry. In CCL, a comprehensive vigilance inspection of all important departments of Rajrappa Area of CCL was undertaken in October, 2005. During the inspection coal stock was also measured and 12 surprise check cases have been registered.
(ii)
(iii) In MCL, the Department came across a tender for the work of construction of embankment/public road in one of the projects of the company at an estimated cost of Rs. 4,892,427. The estimate has been found to be defective and, therefore, cancelled.
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(iv) The complaint regarding misuse of LTC Type II scheme by the employees of NLC was taken up with the CBI, Chennai for detailed enquiry. In the report, CBI suggested to initiate disciplinary action against 243 employees and also recommended to recover the excess claim of Rs. 184.37 lakh from these erring employees. On the recommendation of the CBI, charge memos were issued to 212 erring employees. Remaining employees were retired or repeated names and an amount of Rs.180.45 lakh has been recovered from them so far i.e. upto 31.08.2005. 18.31. In compliance with CVCs Office Order No. 11/3/05 (File No. 005/ORD/1) dated 10.03.2005, review of receipt and payment of Contractors and Suppliers bills for 06 months period from September 2004 to February 2005 has been made and report sent to the Additional Secretary, CVC on 04.07.2005. The process of monitoring is continuing.
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CHAPTER XIX
GENDER ISSUES
WOMEN EMPLOYEES STRENGTH 19.1 The strength of women employees in Ministry of Coal is 23 i.e 14.74% of the total staff strength. Coal India provides employment to around 29,562 women (3112-2005). This constitutes about 6.46% of total manpower. The number of women executives is around 512 and skilled/monthly rated women employees are 6194 the rest belong to unskilled/daily rated category. One of the reasons for low ratio of women as compared to men in Coal India is the nature of the profession itself. Coal mining by its intrinsic nature is an arduous and hazardous task. Moreover there is a regulation preventing women employees from entering the underground mines. Most of the women executives are in administrative disciplines like personnel, finance. 19.2 The directive principles of State Policy stipulates inter alia provision of adequate means of livelihood for men and women, equal pay for equal work, protection of health of workers. WOMEN IN PUBLIC SECTOR IN COAL INDIA LIMITED 19.3 It was with the intention of pursuing the objectives of Directive Principle of State Policy, the Forum of Women of Public Sector (WIPS) was formed. 19.4 A forum of women in Public Sector (WIPS) was established on 12th February, 1990 under the aegis of Standing Conference of Public Enterprises (SCOPE). The idea of "WIPS" was conceived when the Bureau of Public Enterprises in collaboration with SCOPE organised a National Convention of women in Public Sector in October 1989, in New Delhi with a view to analyse the problems of women in the Indian context. At this convention, it was decided to create a national network, a support system that would help women employees to harness their full potential and to enhance their contribution in the national development process in general and public enterprises in particular. 19.5 This forum operate at a national level through its Central apex body at New Delhi and function through four regional centres at Mumbai, Chennai, Calcutta and New Delhi.
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19.6 The membership of this forum is open to all women employees of public sector enterprises on a nominal fee of Rs.25/- + Rs.5/- for admission for a block of 2 years. Class IV employees can be its life members on payment of Rs.5/- only. Aims and objectives of this forum are: To promote growth and development of women in public sector. To assist the public undertaking in optimising the full potential in women employees. To play a catalytic role in improving the status of women in and around public undertakings. 19.7 With a view to have a well co-ordinated action at enterprise/regional units and an effective network with the regional chapters and Apex Body, WIPS Cells are set up in each enterprise headed by co-ordinators nominated by respective enterprise. The co-ordinator of each cell keeps liaison with the respective region and apprises them of the activities is to mobilise public sector units to become members of the forum, as also to encourage lady employees of their units to create WIPS Cells. 19.8 The forum celebrates WIPS Day every year on 12th February by organising a National Meet which is attended by delegates from all over India, nominated by their respective companies. WELFARE SCHEMES FOR WOMEN IN COAL INDIA 19.9 The Mines Creche Rules 1946 aim at providing healthy growth and welfare of children of women employees. There are provisions for special care and protection of children up to the age of six years. The Mine Act and the Mines Creches Rules prescribe detailed norm of women employees, number of staff, wellventilated rooms as per prescribed specifications, toilets, medical facilities and medical check-up of children, proper drinking water facilities and proper diet for children. Special emphasis has been given on cleanliness to safeguard the health of the children. 19.10 The provisions of Maternity Benefit Act and Equal Remuneration Act are being implemented benefiting the women employees of the Company.
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TRAINING 19.11 A major thrust of the CIL and its subsidiary companies is on the skill upgradation of female employees. Female employees are given training on jobs like : Shove/Dumper/Excavator/ Pay-loader operation Haulage/Fan/Pump operation Lathe machine/Moulder/Driller Switch Board Attendance Armature winding Security 19.12 Female employees are also employed on other jobs, as para-medical staff, doctors, computer professionals, security personnel etc. 19.13 CIL has established nurses training institutes where training is imparted to the trainee nurses to find opportunity in or around the industry. 19.14 The Mahila Mondals, Mahila Samity and other such forums are working in different units/establishments' and coalfield areas to look after the Welfare of female employees and female spouses/female dependents. They organise symposiums, seminars, training programme and cultural activities from time to time for women. 19.15 Women employees take active part in the Sports events organised by CIL. Ms. Sumita Laha, has won laurels for the country in power lifting in various international meets. 19.16 As per the Wage Agreement, female dependant of the employee who dies while in service is provided with employment or monetary compensation. NATIONAL COMMISSION FOR WOMEN 19.17 The National Commission for Women was constituted vide the Women Act, 1996. The major responsibility assigned to this Commission is to review the safeguards provided for women under the constitution and other laws and make recommendation for making amendment to remove all inadequacies and shortcomings in those safeguards. It is also required to look into complaints relating to deprivation of women rights or non-implementation of laws enacted to provide protection to women and also to achieve the objective of equality and development.
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19.18 The Commission has been vested with all powers of a. Civil Court trying a suit. Based on the guidelines of National Commission for Women and GOI a Women's Cell has been constituted to look into the complaints of women employees for discrimination and sexual harassment. 19.19 In accordance with the judgement by the Hon'ble Supreme Court in the case of Vishakha and others - vs- State of Rajasthan, CIL and its subsidiaries have made amendment in the service rules/standing orders of employees. WOMEN IN PUBLIC SECTOR IN NEYVELI LIGNITE CORPORATION LIMITED 19.20 WOMEN EMPLOYEES STRENGTH: Total strength of women employees in NLC is 1561 including 212 executives. 19.21 ACTION ON GUIDELINES BY NATIONAL COMMISSION FOR WOMEN: A Committee consisting of senior women executives including a Doctor was formed based to protect women employees from sexual harassment in work place. For the benefit of the workingwomen employees Anbalaya a well-equipped Creech with trained personnel is in operative. 19.22 TRAINING & EMPLOYEES. DEVELOPMENT ACTIVITIES FOR WOMEN
So far 268 women employees have been trained by imparting in house training. 34 women employees have been sent for training to various outside institution to gain advanced knowledge on latest Science & Technology. Further women employees grievances are redressed by way of skilful counselling. The NLC chapter of WIPs has orgranised and conducted several sports, cultural, group discussions for the benefit of women employees. During the year 2005-06, 126 women employees adopted small family norms.
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19.23 SCHEME DEATH RELIEF FUND Out of this scheme 72 dependent of deceased employees (Most of them women) got the financial assistance of totaling Rs.2,69,83000/19.24 FAMILY RELIEF The family relief is paid to around 250 dependants every year, and the financial out go on account of the scheme works out to around Rs.7.31 lakhs.
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CHAPTER - XX Action Taken Notes of Audit Report of C&AG No. 4 of 2005 Audit para No Audit observation Action Taken Report by Companies/MOC (Report No.4 The Coal Mines Provident Fund Organisation The Action Taken Notes on the observation the Audit duly approved by (CMPFO) is responsible for administering the of of 2005)
Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948 (Act) and Schemes framed there under i.e. Coal Mines Provident Fund Scheme, 1948, Coal Mines Pension Scheme, 1998 and Coal Mines Deposit Linked Insurance Scheme, 1976. The CMPFO was unable to extend the schemes to all eligible employees, especially workers employed by contractors. The Organisation failed to determine dues and exercise its powers to realise from the employers the outstanding dues of its members. Its accounting for fund and pension contributions had major shortcomings. As a result, 83 per cent of member's passbooks were not updated and postings of individual ledger accounts of members were in arrears. The returns on fresh investments by the organisation were falling. Several attempts were made to introduce a computerized system of accounting. The measures failed because the CMPFO was unable to provide error free input data. The grievance redressal mechanism was also in deep arrears. Secretary(Coal) were sent to Audit on 5.10.2005 for vetting. The Audit vide their letter dated 22.11.2005 desired that the ATNs may be sent to them in the prescribed format. Accordingly the ATNs in the format were sent to Audit on 13.12.2005. The vetted ATNs are awaited from Audit.
Vetting remarks of Audit
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Collections on account of administrative charges from the employers were misused and internal control was weak. Senior Management of the CMPFO were seconded from coal companies, resulting in a potential conflict of corporate interests of the CMPFO and the employer coal company on matters relating to enforcement of the Act.
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Action Taken Notes of Audit Report of C&AG (Commercial) No. 3 of 2005 Audit para No Audit observation Action Taken Report by Companies/MOC Draft ATN to Audit under Submission. 4.1.1. of Report Bharat Coking Coal Limited No.3 of 2005 (Commercial) The expenditure of Rs.91.18 crore incurred on
the installation of Captive Power Plant has become unfruitful, as the plant could not give desired performance due to defective installation and inexperienced operational staff. The Management finally decided (August 1999) to lease out the Plant, which has not yet materialised (April 2004). In contravention of the National Coal Wage Agreement, the Management paid pushing charges and other allowances to Trammers for jobs which were part and parcel of their work. As a result, the Company incurred an extra expenditure of Rs.2.88 crore during the period from January 2001 to March 2004.
4.1.2 of Report No.3 of 2005 (Commercial)
There are certain jobs, which were being performed by the PR Trammers for which there is no provision for extra payment in NCWA. The extra payment for such jobs to PR Trammers were continuing since long. However, as per FDs decision this payment has been discontinued and at the same time it has also been decided that such extra allowances, which has already been paid, should be recovered in 12 monthly instalments from the concerned workmen. On this issue 3 ID cases were raised by RCMS union and the joint front of all the unions. Out of these 3 ID cases, 2 have been referred to the Ministry of Labour after failure
The recovery of excess payment to trammers has not materialized till date (Nov.05).
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of the conciliation and 1 is continuing. Further, out of 2 cases referred to the Ministry, one has been referred to CGIT for adjudication on the point that certain jobs such as material lowering, rope pulling and loosemanship allowance have not been shown in the job nomenclature of PR trammers. However, payment of extra allowance for the works which are covered by their job nomenclature has been discontinued and concerned CGMs/GMs have been advised to recover the extra amount of allowances paid to the Trammers. But due to pendency of above 3 cases at different levels, the recovery could not be materialized till date. In view of the above, Audit may kindly be requested to drop the para.
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Audit para No
Audit observation
Bharat Coking Coal Limited The Company incurred avoidable expenditure of Rs.1.34 crore as underloading charges of railway freight during the period from September 1999 to November 2002 due to despatch of coal without weighment at loading point The weighbridge at Dhansar siding of Kusunda Area, Bharat Coking Coal Limited(Company) went out of order in August, 1999. As an alternative arrangement the Management started weighment of coal of all the rakes loaded at Dhansar siding by another weighbridge at Patherdih with effect from September, 1999. The Goods Railway Receipt was prepared on the basis of weighment at Patherdih weighbridge.
Action Taken Report by Companies/MOC

The weighbridge went out of order on 28.08.99 and the matter was communicated to M/s Avery India Ltd. Katras Road Dhanbad immediately in which the stress was given for immediate repair to curb the U/L and O/L charges. The urgency of the matter was also communicated over telephone. Mr. M.K. Mondal, Service Engineer of M/s AIL turned up on 30.08.99 and requested for breaking up of seal of CTH for its rectification. The sealing needs testing calibration and FIO certification which is a long process. The seal was opened by Mr. P.Deb of M/s AIL at 7pm on 01.09.99. the matter was pursued with M/S AIL for an early action.

i) The total quantity of dispatch was 766294 MT valuing Rs.59.59 as stated in the ATN shall be Rs.59.59 crores. The legal action for recovery of loss suffered by BCCL against M/s Avery India Limited is yet to be initiated (August 2005). The supply of coal weighed and unweighed from Dhansar siding was 253805 tonne and 9011 tonne respectively during the period from January 2003 to June 2004 (copy enclosed). However,
ii)
iii)
Shri P. Deb took away 4 boards of CTH on 04.09.99 and assured for its replacement by 06.09.99. Despite reminders by the coal company dated 10.09.99 and 15.09.99 the CTH which was taken for repair was supplied It was noticed that wagons were not loaded as per by M/S AIL on 30.09.99. One load cell was their carrying capacity due to non-functioning of taken for repairing/testing. weighbridge during the period from September, 1999 to November,2002. The Company had to pay Inspite of programmed schedule, nobody avoidable freight charges of Rs.1.34 crore to the turned up on 11.10.99 and 12.10.99 for Railway for underloading of 29,549.9 MT of coal
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Railway for underloading of 29,549.9 MT of coal testing, calibrating and commissioning. Coal despatched from Dhansar siding because of coal Company informed M/S AIL on 14.10.99 for found underloaded at weighment point(Patherdih). making available the test weights at site, cleaning the weighbridge, testing calibrating The repairing of the weighbridge was inordinately and commissioning. delayed and took more than 40 months to complete (August 1999 to January 2003). Even In the meantime, the repaired CTH was still not working and the weighbridge pit clearing the issue of the work order (September 2001) took had already been done thrice. Test weights more than two years. The contractor having failed were lying since long with sufficient to deliver, he Management got the repairing work manpower waiting idly till 10.11.99 but no done by another firm in seven weeks at a cost of person from M/s AIL turned up. The situation Rs.1. 50 lakhs and the weighbridge was was apprised by BCCL to M/s AIL on 11.11.99. commissioned and weighment started from January 2003. This proved that the action to When FIO testing failed on 11.12.99, M/S rectify the defects of weighbridge by another firm AIL gave one VDU in lieu of old one. The could have been taken earlier to avert a huge matter was discussed with Mr. BS Nadaan, underloading charge instead of waiting for more Service engineer, M/S AIL and accordingly a letter dated 13/12/99 was given by the coal than three years during which the weighbridge company to M/S for FIO retesting. remained idle. On 14.12.99 Mr. BS Nadaan, Service The Managements reply (May 2004) that the engineer of M/S AIL requested for inordinate delay in commissioning of information regarding availability of wagon. The loaded wagon availability was conveyed weighbridge was totally due to failure of the to M/S AIL for necessary testing on repairer in timely rectifying and commissioning 03.01.2000. Thereafter, M/S AIL stated that of weighbridge was not tenable since due to lack although they had attended to the problem of Cal cycle lock, the problem of
the operation of weigh-bridge at Dhansar siding was stopped from July 2004 due to nonsupply of rakes on account of fire in Dhanbad Patherdih Railway line Section.
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of internal control and efficient day-to-day functioning, the Management failed to get the crucial weighbridge repaired, resulting in a loss of Rs.1.34 crore towards payment of railway freight as underloading charges.
Cal cycle lock, the problem of communication still persisted. M/S AIL was requested for immediate rectification on 05.01.2000.
On 08.01.2000, DME(P), was requested for providing 2 Nos. loaded wagns and loose test Further, there was possibility of pilferage of coal weights for certification of weighbridge. The in transit between Dhasar and Patherdih, the weighbridge could not be put in order by amount of which could not be quantified by the M/S AIL and hence on 11.01.2000 BCCL was requested HWC for weighment at PEH. Management. The Matter was reported to the Ministry in On 21.01.2000 at 4.30 pm Shri M.K. Mandal, May,2004; its reply was awaited Service engineer, M/S AIL came to the site (September,2004). for rectification job and in the process broke the seal and dared to instruct BCCL to get the machine fit by necessary FIO testing. It may kindly be noted that FIO certification is long, exhaustive and expensive process and already twice FIO testing had been carried out and now the machine was again in need of FIO testing without weighment of even a single rake since certification. After a long and exhaustive persuasion M/S AIL agreed to take up the job only after changing the structures of the weighbridge and civil
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modification which were beyond the AMC. M/s AIL was requested by BCCL several times verbally thereafter, but they did not attend the problem. Ultimately, M/S AIL was asked by the coal company to confirm in writing about the commissioning of Kusunda weighbridge on 19/20.01.2001. M/S AIL still insisted on changing the structures of the Rail weighbridge and civil modification beyond the scope of the AMC. From the above it can be seen that the coal company had left no stone unturned to get the weighbridge rectified by th OEM i.e. M/s Avery India Limited. The loss of Rs. 1.34 crores was due to U/L and O/L charges arising due to nonfunctioning of weighbridge. The total quantity of despatch was weighbridge. The total quantity of despatch was 766294 MT valuing Rs.59.59 approx. Thus the U/L and O/L charges comes to 2.26% only of the total value of coal despatched during the period of weighbridge break-down.
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In this connection proper legal action is being initiated against M/s Avery India Limited for recovery of loss suffered by BCCL. In view of the above, audit is requested to drop the para.
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Audit para No 4.2.1 of Report No.3 of 2005 (Commercial)
Audit observation
On the observations of IF Division additional Central Coalfields Limited Wasteful expenditure due to non-completion of information has been sought from Central Coalfields Limited which is awaited. the Cross Country Conveyor Transport Disinvestment of Rs.14.29 crore by Central Coalfields Limited on an unsuccessful Project of Cross Country Conveyor Transport. The Central Coalfields Limited (CCL) entered into an agreement with M/s TRF Limited in November 1994 for commissioning on turnkey basis Kedla Cross Country Conveyor Transport (CCCT) System for transporting 2.60 million MT coal per year at a cost of Rs.19.50 crore. The scheduled date of completion was May 1996. The agreement stipulated that the Company would hand over the site by January 1995 but due to the problems created by the villagers and nonavailability of land there was delay. Resultantly, the contractor could not complete the work within the stipulated period. Ultimately, the work was suspended in February 2000. Provisional extension up to March 2002 was granted to the contractor and it was also decided that work would be done departmentally in case the
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contractor did not restart the work by December 2001. By March 2002, Rs.12.64 crore had been spent on the Project and the project work had not been restarted. As a result, the Company was transporting coal from the Mines to Washery, a distance of 3.5 Km by road through private transport. Audit observed that as per the Project Report of January 1993, the operating cost of coal transportation through CCCT was estimated to be Rs.16.48 per MT and the same through departmentally run truck transportation was Rs.16.69 Per MT. However, the Company had not considered the operating cost of coal transportation through private transporters, which was found to be Rs.15.02 in 1993 and rs.15.75 in 1994 for a distance of 3.75 Km in other collieries of CCL. It came down further to Rs.12.50 Rs.15.37 per MT during the period from November 1997 to August 2003. It is evident, therefore, that the cost of the transportation by road through private transporters was cheaper even when the project was conceived. A high level Committee constituted (November 2002) to examine the status of CCCT inter alia observed (September 2003) that the cost of the
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transportation by road through private transporters was cheaper and so the Project was recommended for foreclosure. While accepting these facts, the Management had stated (August 2003) that they were considering abandonment of the Project, alternative use of Plant and Machinery and writing off the rest of the expenditure. The Ministry endorsed (September 2004) the same view as that of the Management. By March 2003, Rs.14.29 crore has been spent (including bills payable of Rs.62.64 lakh to the contractor) on the Project. The Company had already made a provision to write off Rs.5.01 crore in the Annual Accounts of 2002-03. Thus, due to a wrong decision to undertake an unviable project, the Management had to foreclose it at a later date and an expenditure of Rs.14.29 crore became wasteful.
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Audit observation
Central Coalfields Limited entered into an agreement with Damodar Valley Corporation for supply of power in a phased manner from 1,500 KV A to a maximum level of 6,000 KV A in spite of being aware that actual consumption was around 1,600 KV A to 3,750 KV A, resulting in avoidable expenditure on minimum guaranteed energy of Rs.4.29 crore.

Letter sent to CCL on 03.06.2005 with subsequent reminder dated 11.08.2005, 21.10.2005 and 3.2.2006 for submitting the Action Taken Report. Reply awaited.
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Para 4.2.3 of Report No.3 of 2005
There is no There is enormous potential for the Damodar River Diversion Project (DRDP) as development in respect of there are reserves of 65.55 MT of W-II grade capital expenditure of DRD Project (Nov.05) Central Coalfields Limited incurred expenditure of Coking Coal. and management has Rs.1.83 crore (excluding cost of land) upto March 2003 CMPDIL to The gradual improvement in the asked under advance action plan for diversion of river Damodar without getting approval for the project report financial health of of CCL and the significant prepared Project Report from the Government. The Company could not find rise in the prices of W-II grade Coking Coal which is likely to be ways to mobilize the required sources as Government (19.64%), the implementation of the Project by ready by Feb.06. of India declined funds for the project. As a CCL in the foreseeable future is a distinct Against the total non consequences, an amount of Rs.1.83 crore became possibility. forest land of 1115.946 wasteful. required, the Keeping in view the development in the Acres Coking Coal reserves in Bokaro and Kargali capital market and enormous potential of the management has been (B&K) area of Central Coalfields Limited project, financing of the project would no able to take possession of (Company) are getting depleted. The company 370.994 Acres of land longer be an insurmountable problem for CCL. approved in 1982 a scheme for diversion of River (Nov.05) Damodar for eventual release of coal reserve of 65.55 MT under the river with a capital No further investment of Rs.120.28 crore involving major development has yet been works of excavation of channels and construction noticed. of dams to be completed by 1989-90. The cost of the project was revised to Rs.266.97 crore in August 1988 and Rs.373.12 crore in October 1991. The Project Report was sent to the Government of India (GOI) for approval in October 1988. However, the approval for the same could not be obtained. No updated cost estimate was prepared since 1991.
Wasteful expenditure due to delay in assessing the viability of the project.
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The company took up (April 1983) advance action for acquisition of land, purchase of vehicle and furniture, construction of service buildings, roads, culverts, rehabilitation and afforestation etc. for the project. This was finally approved in April 1993 by GOI for Rs.5.59 crore. The company incurred an expenditure of Rs.4.66 crore towards development expenditure (Rs.1.43 crore) and acquisition of various fixed assets including Rs.2.83 crore for land up to March 2003. The company did not wait for the approval of the project report for mining of coal lying beneath the Damodar River to ensure economical viability of the project. The project report was yet to be approved (August 2004). In 2002-03, the estimated cost for the Diversion of River Damodar (DRD) project worked out to about Rs.900 crore and the liquidity position of the Company was critical and it was suffering continued losses. At this stage, the Management made a financial assessment of the project and realized that the project would not be viable since cost of clean coal of DRD project would be Rs.3171 per tonne whereas SAIL was paying Rs.2414 per tonne to the Company. To make the project viable, the company felt that GOI should provide full cost of the project as a grant and
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SAIL should also be ready to pay for clean coal on cost plus basis. The Management approached GOI (April 2003) for funding the project as a grant through Coal Mines (Conservation and Development) Act of 1974 (CCDA). The GOI, however, declined (May 2003) to extend CCDA funding for implementation of the said project. The Management stated (January 2004) that the country would have to extract the reserves in the foreseeable future and at the appropriate time the Company would find ways to mobilize the required resources. The Managements reply is vague and hence not acceptable. Thus the expenditure of Rs.1.83 crore (Rs.4.66 crore less Rs.2.83 crore towards the cost of land) incurred under Advance Action Plan on the project became wasteful due to embarking on development expenditure without getting approval for the project report from the GOI and not assessing the viability of DRD project in time.
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Audit para No
Audit observation
Coal India Limited Coal India Limited purchased office space in Scope Minar Building; the possession of space had not been taken, resulting in an avoidable expenditure of Rs.63.50 lakh being I rent paid for its various hired offices. Besides, the amount of Rs.6.31 crore spent for the office space remained blocked.

The present status in regard to shifting of office to SCOPE MINAR and de-hiring of earlier premises is as under:i) Functional Directors, CIL approved the proposal of shifting of offices from hired premises on 09.11.2004. ii) Notices were served to the existing owners of the hired premises regarding CILs intention to vacate their premises by 31.3.2005 vide letter dated 17.11.2004. iii) Possession of the 4th and 5th floors of SCOPE MINAR TOWER, Laxmi Nagar was taken on 1.12.2004 iv) Administrative approval for Rs.6.65 lacs. For shifting of the office to SCOPE MINAR TOWER was proposed vide note dated 01.12.2004 and approval received on 17.1.2005. v) The hired premises at Ansal Bhawan and Surya Kiran Building offices have been de-hired after competent approval and offices located there have been shifted to SCOPE Minar Complex and started functioning from 9th March, 2005.
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Audit para No
Audit observation
Northern Coalfields Limited Short-recovery of burnt oil Short-recovery of burnt oil below the target led to loss of revenue to the extent of Rs.6.29 crore during 2000-01 to 2003-04. In eight opencast mines of Limited (Company), coal is deploying Heavy Earth (HEMM). Lubricating oil required to be drained out certain hours of operation. Northern Coalfields being extracted by Moving Machines used in HEMM is from engines after

The concept of recovery of burnt oil was introduced under the World Bank guidelines to protect from environmental pollution. In this connection, the maximum level of recovery was suggested as 80%. The recovered burnt oil was to be disposed off suitabley to avoid pollution. From the environmental point of view, NCL has opted for disposal of the recovered burnt oil through M/S MSTC. Whatever amount received on account of such disposal adds to the revenue of the company, and the disposal is not with any particular purpose of earning profit. The Company has not suffered any financial loss on this account and hence this point should not have been included in the Audit Report at all. So far as recovery level is concerned, it is not at all possible to recover 80% because the percentage appears to have been fixed on theoretical calculation based on normal consumption of oil. However, during the course of operation of HEMM there is every likelihood of wastage of oil due to bursting of Hose, leakage form various joints & seal etc.

It is stated by MOC that in Indian climatic condition 80% recovery was not possible. But the facts remains that recovery of 80% was fixed by CIL as per discussion with World Bank mission. MOC also stated that on an average 35% recovery was possible. However, some of the projects of the Company achieved 64% to 69% recovery after audit objection had been raised. This showed the potentiality for improvement.
The World Bank under Environmental and Social Mitigation Project (ESMP), funded five of the open cast projects of the Company. While reviewing these projects (November 1999), a norm of 80 per cent recovery of burnt oil was recommended by Coal India Limited in consultation with the World Bank Mission. The burnt oil so drained out and recovered has saleable value and the Company has been disposing of the same regularly.
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However, recovery of burnt oil was much below the norm of 80 per cent. The actual rate of recovery of burnt oil varied from nine to 23 per cent during four years ending March 2000-01. On this being pointed out in Audit(July 2001), the Management stated (September 2001) that they had kept 35 per cent target for recovery of the burnt oil. It was noticed that the recovery of burnt oil was 23-24 per cent during the period from 2000-01 to 2001-02. However, ti was noticed that after being pointed by Audit, the percentage of recovery was improved to 31-32 per cent during years 2002-03 to 2003-04. The quantity of short-recovery of burnt oil works out to 8,802 Kiloliters valuing Rs.6.29 crore against the target of 80 per cent four years from 2002-03 to 2003-04. Even considering the norm with reference to the 35 per cent target, the loss of revenue works out to Rs.92.34 lakh during this period. The Management stated (July 2003) that 80 per cent recovery of burnt oil was not feasible due to tropical climate in the mines of the company and frequent failure of hoses and O rings. The Management further stated that the World Bank might not have considered the climatic condition of the Company while fixing the norm. They intended to keep the target of recovery of burnt oil as 35 per cent in the years to come. The Ministry
Hose, leakage form various joints & seal etc. Further under any circumstances of the Indian climate condition 80% recovery is not possible. Further during winter the necessity is less and in summer it is slightly more. Average it can not be more that 35%. However efforts are being taken to recover maximum.
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endorsed(October 2003) the contention of the Management. The reply is not tenable since the Management had proposed(September 2001) the following measures to improve recovery of burnt oil: (i) Periodical inspection of hydraulic hoses, especially high pressure hoses to arrest premature failure; (ii) Procurement of quality hoses from Original Equipment Manufacturer or approved sources only; (iii) Leakage of hydraulic oil and falling on the hot zone to be stopped by all means; (iv) The provision had been made at all projects for wheel mounted trolleys with pump and collecting funnels at different locations for collecting the used oil in the trolley through funnel; (v) The provision for recovery of burnt oil in underground tank was in progress. In two projects of the Company the recovery of burnt oil was 64 to69 per cent during the quarter July 2003 to September 2003, which refutes the Managements argument that higher rate of recovery was not feasible due to climatic condition. Thus, inadequate measures for improving the recovery of burnt oil led to shortrecovery, which resulted in loss of revenue of
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Rs.6.29 crore during the period from 2000-01 to 2003-04 against the norm of 80 per cent. Even with reference to the low target norm of 35 per cent, the Company suffered a loss of revenue of Rs.92.34 lakh during the same period.
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Audit para No
4.5.1 of Report 3 of 2005 (Commercial)
Audit observation
In order to cater to the domestic and industrial requirement of water for mining and non-mining population of Pench and Kanhan coalfields area, the Western Coalfields Ltd. (Company) entered into an agreement with the Govt. of Madhya Pradesh, Public Health Engg. Deptt.(PHED) (May 1988) for execution of the Project. The project was to be completed within a period of three working years from the date of starting actual construction work. PHED was to undertake operation and maintenance of the headworks and make bulk supply to the Company at appropriate points. According to the agreement, the estimated cost of a) Original cost of the Project : Rs.9.99 crs (as approved by WCL Board on 21.3.1984) the project (Rs.9.99 crores) as well as operation and maintenance (O&M) cost was to be shared in b) 2/3rd share to be borne by WCL Rs.6.66 cr. Revised cost of the project: Rs. 13.95 crs (as the ratio of 2:1 by the Company and PHED c) approved by WCL Board on 14.1.96 ) respectively d) 2/3rd share to be borne by WCL Rs. 9.30 crs. However, the agreement did not stipulate any (a) It is a fact that in the agreement, there is no clause for committed supply of water by PHED mention of committed supply of water by PHED to to meet the requirements of coalfield areas. WCL under normal condition.
Factual Position. No further remarks.
Ministry has accepted that there was no mention of committed supply
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b)
c)
d)
e) f)
(g)
However, agreement clause 5 stipulates committed water supply on 2:1 basis (WCL: MP Govt.) during emergencies like scarcity condition. Pench and Kanhan areas of WCL are having water scarcity condition throughout the year due to non-availability of adequate source of water in the region. The agreement is based on project report prepared by Govt. of MP having original cost of Rs. 9.99 crs. As per original project report capacity of water treatment plant proposed was 3.50 MGD. The WCL population to be catered under the scheme is 1,05,230 nos. as per agreement out of a total of 193010 (55% approx.) As per original project report. water demand is calculated @ 100 litres/capital/day for 60% population. On this basis, the total water demand for WCL population of 1,05,230 comes to 2.33 MGD. Total amount deposited by WCL: Rs.8.83cr till date towards cost of project (Last payment was made in 1998-99). Total expenditure reported by Rs.14.67crs PHED towards cost of project. 2/3rd share claimed by PHED; Rs. 9.78 crs
of water by PHED to WCL under normal conditions. Factual position. No further remarks.
Although the project was not yet fully completed a) even after 18 year (September,2004), PHED has been supplying water since Spt.,1991. However, though the Company had borne Rs. 8.83 crores, b) being 60.40 percent of total expenditure of Rs. 14.62 crores upto Oct.,2004 on the project and c) had incurred expenditure of Rs. 3.69 crores towards O&M charges, PHED had been
Factual position. No further remarks.
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supplying water only to an extent of 0.345 MGD WCL stopped making further payment towards cost of (average quantity), against the proportionate the project since 1989-1999. share of 2.33 MGD. The O&M charges are made on pro-rata basis only as per actual supply of water received from PHED. As per joint inspection report of WCL & PHED, Govt. of MP, dated 31.12.2004, the average supply of water during the period July,2003 to June, 2004, received from PHED, Govt. of MP, is 0.90 MGD. As such, even after incurring an expenditure of Rs. 12.52 crores, the Company could not get its due share of water because of lacunae in the agreements as regards committed supply of water by PHED. As result, the Company had to make alternate arrangements for water through water tankers, incurring an expenditure of Rs. 57.96 lakhs during the period from 1993-94 to 2001-02. The Ministry accepted (November/ Feb.,2004) that the Company had not only made a deficient, weak and non-enforceable agreement but also failed to initiate proper remedial measure dispute resolution with PHED. It further stated that the Company had been advised to warn the concerned officials and to avoid recurrence of such cases in future. CMD, WCL, vide letter no.NGP/WCL/Civil/03-04/734 dt. 10/15.10.2003 , had taken up the issue with Principal Secretary, PHED, Govt. of M.P. Bhopal, stating that assured quantity of water i.e. 2.33 MGD as per agreement, are not being supplied by PHED to WCL and urged him to take necessary action to ensure supply of assured quantity of 2.33 MGD water to WCL Factual position. However, WCL is still not getting the required quantity of water.
The concerned official who had signed the agreement Factual Position. has expired. However, a Circular was issued to the No further officers of WCL dt. 2.4.2004 advising them to ensure remarks. that there should be no lacunae in the agreement/MOU etc. with the external agencies.
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Thus due to defective agreement, the Company 1) Meeting was held on 27.4.2004 at Bhopal between could not get intended benefits of the water the Principal Secretary, PHED, Govt. of MP, and supply of scheme, as a result of which, the Director (Technical) P&P, WCL in this regard. expenditure of Rs. 12.52 crores incurred thereon remained largely unfruitful. In the said meeting, WCL highlighted that in spite of depositing Rs. 8.83 crores towards construction of the project and Rs. 3.69 crores towards O&M, WCL, is getting only 0.9 MGD water, due to nonimplementation of the scheme by PHED, Govt. of MP. WCL requested Principal Secretary to take immediate action to supply assured quantity of 2.33 MGD water to WCL and that WCL was not in a position to deposit any further amount in this scheme.. The Principal Secretary, PHED, Govt. of MP, agreed that PHED should have implemented the approved scheme of Rs. 13.95 crores fully and stated that responsibility will be fixed after necessary enquiry on this issue. He further instructed the attending officials of PHED to take the help of Swajaldhara scheme of Govt. of India to prepare proposals under Swajaldhara scheme covering the population of WCL colonies which are not getting adequate water supply from Pench Valley Water Supply Scheme. The Swajaldhara Scheme envisages 90% funding of the scheme by Central Govt. and 10% by
The developments/ actions narrated in the reply are factually correct. But the fact remains that there is no marked improvement in the water supply position and WCL is not getting its fair share of water even after investing Rs.12.52 crore and so the defective agreement resulted in the investment being largely unfruitful
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proposer. PHED requested WCL to bear 10% of cost of project WCL informed that they have already deposited Rs. 12.52 crores with Govt. of MP and 10 % of the proposed Swajaldhara scheme should be taken from that amount. PHED, Govt. of MP had come up with a rerevised scheme of estimated cost of Rs. 29 crores for constructing a RCC dam on Mandhan Nallah and requested WCL to bear the cost on 2.1 share basis. WCL did not agree to the proposal and categorically stated that already they have spent Rs. 12.52 crores and not yet getting assured quantity of 2.33 MGD water. (2) A meeting was held with PHE Deptt., Chhindwara, Govt. of MP on 15.12.04 at WCL HQ, Nagpur. It was made clear to the PHED officials during the meeting that: a) WCL shall not share 2/3rd of total annual O&M cost as claimed by PHED.
b) WCL is unable to make further capital expenditure in the scheme. Revised Scheme for Rs.29.00 crores can not be approved as per the decision of the WCL Board during sanction of revised scheme of Rs. 13.95 crores.
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c)
PHED officials were requested to consider the Swajaldhara scheme, in consultation with their Ministry, to augment the water supply to WCL. PHED informed that they have already set up new dug wells and other arrangements to augment supply of water and that the water supply to WCL has increased from 0.345 MGD in 2001-2002 to 0.90 MGD in 2003-04.
3)
Meetings were held with the Collector, Chindwara on two occasions on 28.2.2004, and, on 3.5.2005. In both the meetings, it was informed to the Collector about the serious water scarcity being faced by WCL in summer, due to non-supply of assured quantity of water by PHED and in consequence the audit para being faced. WCL urged the Collector to take necessary actions to increase the supply of water from Pench Valley Water Supply Scheme.
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Audit observation Western Coalfields Limited Idle power supply line due to non-completion of the related substation. Due to improper planning in execution of the project and non-synchronisation of the related activities, 220kV power system could not be completed. As a result, the supply line and equipment valuing Rs.6.56 crore remained idle for almost two years, which consequential loss of interest amounting to Rs.1.06 crore. Board of Directors of the Company approved (August 1991) the project report for the supply of 220 kV power to its mines located in the west bank of Wardha river. The project involved setting up of an incoming 220 kV supply line and 220 kV/66 kV substation. While the line was to be constructed by the Maharashtra State Electricity Board (MSEB), the substation was to be installed by the Company. The Company procured(1992 to 1994) various electrical equipment* (*25MVA transformer, 220/66 kV circuit breaker, current and potential transformer) worth Rs.3.54 crores for the 220 kV substation. It also deposited (February 1995) a
Action Taken Report by Companies/MOC The following major activities were involved in establishing 220 KV System at Wani area of WCL. 1 (a) Establishing the incoming 220 KV supply & (b) installation of 220/66KV Sub station. 2. Construction of 66/llKV S/S for distribution of power at 11KV to various projects. While activity at l(a) was to be dealt by MSEB, activities at l(b) & 2 were to be carried out by WCL. No equipments were procured for 220/66KV substation. Though an attempt was made for the procurement of 25 MVA transformer and 220KV C.B, the tenders were closed and the idea of departmental execution of work was abandoned. Equipments procured for Rs.3.73 crores were for establishing 66/11KV substation, i.e activity 2 mentioned in para 1,which were required for receiving the 66KV power from MSEB that will continue to be used even after the commissioning of 220/66KV S/S and distributing the same on 11KV to meet the immediate additional load of 4.5 MV A due to the up coming projects, increase
Vetting remarks of Audit Statement of facts.
Statement of facts.
Statement of facts
The equipments valuing Rs. 6.56 crore(5.78+ 0.78 crore) are unutilized/under utlised and investment is blocked since long.
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substation. It also deposited (February 1995) a sum of Rs.5.78 crore with MSEB for construction of the supply line, which was expected to be completed to be in 30 months.
in the activities of the existing mines and introduction of Dragline. The 66/11KV substation is the main source of power supply to different mines/projects/townships
In April 1995, the Company decided to award the As per their letter No.153l5 dated 2/5/89 and 24227 work of commissioning of the 220/66 kV dated 2l/6/93,MSEB was to take 2.5 years to complete transformers on turnkey basis. However, it the job after availability of land for drawing of line. invited tenders in February 2001 after a period of The main reason for the delay from March 95 to Jan almost six years and awarded the work to M/s 2001 was due to the various activities involved in the Crompton Greaves Limited (Contractor) in planning, designing and tendering the work of March 2003 at a total cost of Rs.4.85 crore, with 220/66KV substation . completion schedule of 22 months. The contractor had not started (June 2004) the work Since WCL did not have any expertise in vetting the due to no-settlement of its demand of 20 per cent increase in rates owing to delay in awarding the technical specification, help of outside agencies were work by the Company. Meanwhile, the work of taken for finalizing the technical bid. 220 kV supply line had been completed by For proper establishment / operation of 220KV MSEB in October 2002. However, the supply S/station, it was essential that proper equipments line constructed at a cost of Rs. 5.78 crore could procured should be of proper specification and not be put to use due to non-synchronisation of compatible with one another. Since any default in the specification would affect the operation of the related activities. proposed 220 KV s/station, it was essential to seek technical opinion of expert The Ministry stated (October,2003/August 2004) the that since additional power was urgently organization/consultant. required at Wani Area and establishing 220 kV system was expected to take time, MSEB had Accordingly, MSEB and Power Grid Corporation of agreed to provide power at 66 kV as tentative India were approached for providing consultancy service. MSEB vide their letter No.34604 dated arrangement on receipt of Rs.5.78 crore towards 18.8.1997 expressed their inability in providing the
Statement of fact. However, the time taken for these activities was nearly six years which is not justified. It would be seen that there was inordinate delay at every stage of the work relating to planning, designing, selection of consultants etc.
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the erection of 220 kV line. They added that it was decided to carry out the work of installation of 220/66 kV substation on turn-key basis due to lack of expertise, involvement of more than one agency, etc. Further, most of the equipment procured were now in use for availing 66 kV supply. The reply is not acceptable as the Company took almost six years in finalisation of the tender documents and further two years in award of the work, indicating improper planning in execution of the project. Further, equipment worth Rs.78 lakh procured prior to March 1994 were yet to be utilised(July 2004). Thus, improper planning in execution of the project coupled with non-synchronisation of the related activities, resulted in advance procuremtn of the equipment as well as inordinate delay in tendering award and completion of the substation work. Consequently, the supply line and equipment valuing Rs. 6.56 crore* (*Rs.5.78 crore deposited with MSEB and Rs. 78 lakh towards unutilised equipment) remained idle for almost two years since October 2002, which resulted in loss of interest amounting to Rs.1.06 crore*(* calculated at 8.43%), average rate of interest ) on blocking of funds (September 2004).
18.8.1997 expressed their inability in providing the required assistance. M/s. Power Grid had agreed for providing the consultancy service, which was, approved by WCL Board on 11.2.1998 subject to clearance by CIL. CIL directed WCL to avail consultancy service of CMPDIL, Ranchi on 12.6.1998. M/s. CMPDIL Ranchi requested WCL to review the load requirement based on the changed scenario. After obtaining the competent approval for the reduction in capacity same was communicated to CMPDIL in 8/1999. Based on this, CMPDIL Ranchi submitted the modified NIT document in July, 2000 and the approx. estimate for turn key work was submitted in 9/2000. After obtaining necessary Financial Clearance in 12/2000, the tender for turn key job of commissioning the 220/66KV S/Swas floated in February 2001 On the basis of queries by vendors on technical & commercial matters and request from vendors for the extension of the date of opening of the tender, approval from competent authority was obtained, corrigendum was issued and Part I (A) i.e. the prequalification bid was opened in 6/2001.After obtaining the approval from competent authority, M/s. CMPDIL was engaged for evaluation of offers in 7/2001. After following the tender procedures, on evaluation of part I(A),part I(B) ie Technical bid was opened in 12/2001
Statement of facts
Statement of facts
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Besides, the Company could not derive the intended benefits of the 220 kV power system even after 10 years of commencing the process.
I(A),part I(B) ie Technical bid was opened in 12/2001 the evaluation of which was completed in 3.1.2002. Subsequently part II i.e. the commercial bid was opened in 4/2002 and same was evaluated/ negotiated. After obtaining the approval for opening the price bid from competent authority, Part III was opened in10/2002 which was evaluated/negotiated. Approval for the reduction in capacity of the sub station was obtained from WCL Board on 15.1.2003. Tender Committee recommendations were finalized in 3.2003 after obtaining the approval from competent authority. LOI was issued on 3/2003. Due to the drastic increase in prices for steel, cement, copper etc, M/s.Crompton Greaves demanded price escalation as against the firm contract price specified in NIT & work order. In spite of various follow ups & discussions at different levels, M/s. Crompton Greaves did not agree with the request of WCL to review the demand for price escalation. The work order issued to M/s. Crompton Greaves was terminated as the price escalation was beyond NIT terms & conditions.
The work was not completed as scheduled and retendering has been resorted to which is still under process. Thus the investment made by the company still remains blocked.
Management vide their letter dated 27.4.04 has intimated that M/s MSEB has completed the work in October, As per the communication received from MSEB likely 2002 date of completion of 220KV supply line was 15th Aug 2004. No further communication in this regard has been No comments. received by WCL.
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In order to meet the immediate additional power requirement due to the introduction of Dragline at Ghugus and increase in production programme from up coming projects such as Neeljai, Ukni, Mungoli etc, WCL had no other choice but to accept the additional power at 66KV against 220KV power supply as an interim arrangement from MSEB (which WCL will dovetail with the proposed 220/66KV S/S) by depositing Rs.5.78 crores demanded by MSEB, which was pre-requisite to enhance the demand. It was decided to carry out the work of installation of 220/66KV substation on turn key basis due to lack of expertise, involvement of more than one agency, to avoid the risk of mismatch in the arrival of equipments etc. Further most of the equipments procured are now in use and will continue to be in use for availing 66KV supply and distributing power at 11KV to different mine/projects/ townships. The equipments worth Rs.78 lakhs are kept as stand by for use in exigency in any of the three existing 66/11KV substation namely Ghugus 66KV,Sasti 66KV and Majri 66KV. Since 1987 whenever WCL asked for additional power either at the existing points or for new projects, MSEB had insisted WCL to avail power at 220 KV /132 KV as their existing 66KV
The equipments have been procured from the year 1992-93 onwards and the turnkey contract for 220 KV substation has been awarded in march 2003 which is not yet completed (October 2005) and retendering is under process.
The investment for procurement of equipment has been blocked since march, 1994. The equipment of Rs.78.2 lakh have not been energised.
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system had outlived its life and they are in the process of eliminating the 66KV system in phased manner.(copy enclosed).MSEB vide letter no.38227 dated 27/11/89 clarified to WCL that no additional demand could be met satisfactorily on the then existing system and WCL should avail 220KV supply at Ghuaus. However against WCL'S commitment to establish 220 KV source of supply at Matradevi, MSEB agreed to provide 66 KV source at Matradevi in order to meet the urgent immediate additional requirement of load due to the up coming projects, increased activities in the existing mines in this region and the introduction of Dragline, as an interim arrangement till 220 KV is made available as the implementation of 220KV power was likely to take time. Hence as per the policy and planning adopted by MSEB, WCL had no other option than to avail 220KV for meeting the additional load by depositing Rs.5.78 crores to MSEB. Coal production at Ghugus after commissioning of dragline 1n 1991-92 had doubled apart from increase in production at other projects. This increase in production would not have been possible in the 11KV distribution network, had MSEB not enhanced the demand by 4.5 MV A over the then existing demand in 66KV which was with a
The fact remains that there was inordinate delay at every stage of execution of the project and the same is yet to be completed even though more than ten years have since passed. This shows the casual approach adopted by the company in implementing the project.
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commitment from WCL to avail power from220KV in future. Equipments procured were required for receiving this 66KV power and distributing the same at 11KV, with out which adequate power could not have been made available to the mines for achieving this high production. If an amount of Rs.5.78 Crores, which was pre-requisite for providing the additional demand at 66KV as an interim urgent need, was not deposited with MSEB, then the increase in profit from the projects drawing power from 66KV system in lieu of 220KV from Rs.29.35 crores in 89-90 to Rs.251.3 crores in 2003-04 would not have been possible. Thus delay in the execution of 220KV project has affected neither the power requirement of the on going up coming projects nor production of these projects as MSEB has provided power at 66KV as a tentative arrangement.
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Action Taken Notes of Audit Report of C&AG No. 4 of 2005 (Commercial) Audit para No Audit observation Action Taken Report by Companies/MOC Vetting remarks of Audit
Report No.4 The construction of Madhuband Coal The draft para has been referred to the concerned coal company of 2005 Washery was awarded to Mining and Allied i.e. Bharat Coking Coal Ltd. and reply is awaited from them. (Commercial) Machinery Corporation Limited in December 1985 at a cost of Rs.72.50 crore as against the lowest bid of Rs.54.35 crores. A review by Audit revealed that the company had failed to attain the objective of production and supply of washed coking coal to the steel plants in order to narrow the gap between the demand and supply of washed coal from indigenous sources. Several causes for delay in setting up of the washery at the total capital investment of Rs. 197.23 crores inclusive of substantial cost-overrun, lack of adequate feasibility study, improper selection of the contractor and poor performance of linked mine were noticed. The washery was put to operation in incomplete shape without addressing the deficiencies and by passing some of its production circuit. This led to gross
183
underutilisation of capacity and uneconomical operation. The washery sustained a loss of Rs.127.03 crore over last five years of its operation ending 31st March 2004. In view of failure to arrange raw coking coal for feeding to the washery, a decision was taken to convert the washery for washing non-coking coal for supply of washed power coal to powerhouses instead of coking coal for which it was designed. The decision frustrated the basis purpose for which it was constructed.
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Action Taken Notes of Audit Report of C&AG No. 4 of 2005 (Commercial)

Report No.4 of 2005 (Commercial) Under process. Western Coalfields Limited IT Review on Asset Management System The Asset Accounting System in the Western Coalfields Limited served the limited purpose of calculation of depreciation and generation of asset register. It was not a complete system in itself and was not linked to the Financial Accounting System. It was running in different languages at different units with end-users having unlimited authority to effect changes in module and alter entries in asset register. Further, no built-in checks were developed in the system to ensure data integrity and compliance of accounting principles.
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CHAPTER I

THE YEAR 2005-06 AT A GLANCE

CIL SCCL OTHERS TOTAL

Provisional (figures excluding Meghalaya)

----- x ----- x ----- x -----

1. Stowing, Protective works and R&D 2. Development of Road & Rail.

Collection of Excise Duty:

Collection, Compilation and Publication of Coal Statistics:

Rs. 904.18 Rs.8,000.00

Figures in parenthesis indicate earlier year figure.

MCL Talcher Total Drilling in Non-CIL blocks:

Total Depth Logged (m) 2252 136 2388

CIL/Others Non-CIL Promotional Total

----- x ----- x ----- x -----

Figures in bracket represent middlings.

* indicates including Meghalaya.

1.00 8.05 ---19441.59 400.00 19841.59

1.00 8.05 459.19 19143.74 240.00 19383.74

* Leco (4383 tonnes), Fine (7582 tonnes)

Coal Demand (In million tonnes)

Figures in bracket represent middling.

(In million tonnes)

----- x ----- x ----- x -----

Advance Action Proposals sanctioned by the Government from 1/4/2005 TO 31/12/2005.

MCL MCL NLC

7.50 11.90 57.3085

More than Rs. 100 Crs 5 3 5 7 1 5 10 36 8

Costing Rs.20 to Rs.2 to 20 100 Crs Crs. 9 47 6 53 11 47 9 3 46 58 46 49 17 8 144 265 46 41

Total 61 62 63 19 105 100 35 445 95

61 62 63 19 105 100 35 445 95

CIL SCCL NLC TOTAL

Sanctioned Capital (Rs. Crs) 10376.56 1192.07 5566.31 17134.94

Ultimate Capacity (Mty) 133.20 18.25 6.10 157.55

The system of monitoring at various levels has been standardized.

Guidelines by the Government on specific measures to cut delays in implementation of projects

----- x ----- x ----- x -----

5.93% ---------100.0% -----------

Import Duty 0% 15% 5% 5%

----- x ----- x ----- x ----______________________

4.50 2.50 5.00

45.00 25.00 70.00

70.00 50.00 75.00

85.00 65.00 90.00

----- x ----- x ----- x -----

CMRI/CMPDI/ECL/ NCL/SECL IISc, Bangalore CFRI CFRI CFRI NLC/Anna. Univ.

0.50 0.05 0.89 0.47

Completed Completed Completed Completed

Completed Phase-1 Completed .

1.88 1.88 1.88 1.88

Phase-1 Completed Completed Completed

Chakdola Mangalpur under consideration

----- x ----- x ----- x -----

STATUS OF MANPOWER OF CIL & SUBSIDIARIES

Year 1997-98 1998-99 1999-00 2000-01

ECL BCCL CCL ECL BCCL CCL ECL BCCL CCL

Rs.43.00 Rs.42.00 Rs.22.02 Rs.53.00 Rs.53.00 Rs.32.44 26.16 69.93 7.41

Rs.69.61 Rs.70.44 Rs.32.46 Rs.31.40 Rs.51.03 Rs.38.34 Rs.56.30 Rs.64.74 Rs.37.36

2512 2579 1082 938 1734 1148 1407 1620 983

CORPORATE HRD PLAN

No. of Persons trained

04 31 06 15 64 5 2 9 2 172 -99 15 39 113 08 25 145 245

NON-STATUTORY TRAINING PROGRAMMES:

WAGES IN COAL SECTOR