Scope of Productivity

improvement and cost reduction

in UG mines of SECL
NO. OF COAL MINES AS ON 31.03.05

COMPAN NO. OF MINES TOTAL

Y UG OC MIXED

CIL 287 151 37 475

SCCL 53 11 - 64
IISCO 1 - 2 3
TISCO 5 3 - 8
DVC - 1 - 1
OTHERS 6 6 - 12
TOTAL 352 172 39 563
% 62.5 30.5 7
 NO.OF COAL MINES
SECTORWISE AS ON 31.03.05
COAL NO. OF MINES TOTA
SECTOR L
UG OC MIXE
D
PUBLIC 345 164 39 548

PRIVATE 7 8 - 15

TOTAL 352 172 39 563

 TREND OF RAW COAL PRODUCTION FROM
UG MINES IN LAST TEN YEARS.
UNDERGROUND ALL INDIA RAW
COAL
YEAR PRODUCTION (MT) UG UG GTH. PRODN GROWTH
CIL SCCL ALL SHARE % ALL
INDIA INDIA

1995-96 54.811 13.164 71.894 26.3 -0.12 273.4 6.07

1996-97 55.188 13.733 70.952 24.5 -1.31 289.3 5.82
1997-98 53.978 13.600 69.028 23.0 -2.71 300.4 3.83
1998-99 53.312 12.954 67.761 22.9 -1.84 296.5 -1.30
1999-00 52.321 12.791 66.827 22.0 -1.38 304.1 2.56
2000-01 50.555 13.787 66.068 21.1 -1.14 313.7 3.15
2001-02 49.219 13.747 64.816 19.8 -1.90 327.8 4.49
2002-03 48.416 12.808 63.159 18.5 -2.56 341.3 4.11
2003-04 47.445 13.314 62.753 17.4 -0.64 361.2 5.85
2004-05 47.041 12.974 62.349 16.3 -0.64 382.6 5.92
 PRODUCTIVITY & PROFITABILITY OF
DIFFERENT SUBSIDIARIES OF CILFOR
05-06 (Underground)
COMPAN OMS EMS Cost of SALE
Y APR’06 Prodn. PRICE
(Rs.) (Rs/Te) (Rs./Te)

ECL 0.45 745.34 2517.27 1628.33

BCCL 0.46 779.29 2887.17 1432.05
CCL 0.43 771.18 2552.79 1253.57
WCL 1.05 798.36 1360.61 1172.84
SECL 1.13 819.75 1317.17 1226.86
MCL 1.12 732.50 1112.82 933.20
NEC 0.22 939.58 8477.33 1563.78
CIL 0.71 785.78 1819.31 1307.17
 SECL Financial Performance
05-06
Loss of Loss Profit Profit Total Profit/
all UG Per/T of all /T Profit T
mines OC (Rs)
(Rs) (Rs cr.) (Rs)
(Rs cr.) mines
(Rs cr)
SECL -148.1 -90.3 1727.4 259.8 1579.3 190.5

Johilla -12.57 -88.8 -12.57 -88.8

 Production Trend over last 10 years

500

400

300 UG
OC
200
Total
100

0
'95- '96- '97- '98- '99- '00- '01- '02- '03- '04- '05-
96 97 98 99 00 01 02 03 04 05 06
 PRODUCTIVITY TRENDS
(SDL/LHD/Road Header/PSLW/Cont
Miners)

PRODUCTIVITY (Te)
SL.N TYPE OF EQUIPMENT 2005-06 2004-05 2003-04
o

1. SDL 83 82 79
2. LHD 141 137 133
3. PSLW 516 583 459
4. CONT.MINER/OTHERS 1313 1060 1144
 UNDERGROUND MECHANISATION
(Performance of SDL/LHD/Road
Header/PSLW/Cont Miner)
PRODUCTION (LT)
SL.NO TYPE OF EQUIPMENT 2005-06 2004-05 2003-04

1. SDL 209.90 215.99 216.60

2. LHD 88.89 73.80 54.84

3. ROAD HEADER 1.84 1.97 1.47

4. PSLW 8.92 13.56 20.52

5. CONVENTIOANAL MECH 0.70 0.99 0.99

6. CONT. MINER/OTHERS 7.10 5.60 6.58

TOTAL MECH. PRODN 317.35 311.91 301.01

Global L/W Mining
Performances
Country No. of Best Prodn Avg Prodn
faces (mtpa) (mtpa)
USA 49 7.2 4.3
CHINA 600 8.9 0.8
AUSTRALI 24 5.7 2.8
A
RUSSIA 120 4.1 0.5
INDIA 5 0.5 0.1
Global Room & Pillar
Performances

Country Best Prodn Avg Prodn

(Lac (Lac
ton/month) ton/month)
USA 1.10 0.70
CHINA 2.00 0.30
AUSTRALIA 0.60 0.40
RUSSIA 0.35 0.20
INDIA 0.50 0.40
 TECHNOLOGY-WISE COAL
PRODUCTION IN CIL
(IN LAKH TONNES)

S.NO TECHNOLOGY 2005-06 2004-05 2003-04

1. DEVELOPMENT 292.74 291.41 290.03
2. DEPILLARING 147.08 157.30 156.37
3. LONGWALL 11.25 16.08 22.93
4. MASS PRODN TECH 7.10 5.62 5.12
OVERALL CIL 458.17 470.41 474.45
MANUAL 140.82 158.50 173.44
MECHANISED 317.35 311.91 301.01
SHARE OF MANUAL PRODN 30.7 33.7 36.6
%
SHARE OF DEVELOPMENT % 63.9 61.9 61.1
 Mine wise production of TATA
Group of mines (TPD)
• 1. JAMADOBA GROUP
• DIGWADIH - 1100 TPD
• JAMADOBA – 950 TPD
• 6&7 PITS - 950 TPD
• TOTAL - 3OOO TPD
2. SIJUA GRUOUP
. SIJUA - 1175 TPD
• BHELATAND – 1250 TPD
• TOTAL - 2425 TPD
 JAMADOBA GROUP
MANPOWER AS ON 20/7/05
DEPARTMENT EMPLOYEE OFFICERS TOTAL
JAMADOBA 1278 20 1298
DIGWADIH 988 18 1006
6&7PITS 817 15 832
J.C.P.P 235 6 241
GR.OFFICE 27 6 33
S.M.P 8 0 8
TOTAL 3353 65 3418
 Chronology of Jharia Lease
6&7 Pits Colliery
• 1900 Leased to G.C. Bose
• 1902 Reneegunge Coal
Association Ltd.
• 1904 Indian Collieries Ltd.
• 1918 Tisco
Digwadih Colliery
• 1902 Reneegunge Coal
Association Ltd.
• 1904 Indian Collieries Ltd.
• 1918 Tisco
Sijua Colliery
• 1895 Sijua Coal Company
• 1918 Tisco
Bhelatand Colliery
 1901 Central Jerriah Coal
Company
 1906 Barakar Coal Company
 1931 Tisco
Malkera Colliery
 1913 Nawagarh Coal Company
 1931 Tisco
 DISCOMFORT INCREASES WITH DEPTH
1960 1975 1990 2000 2002

850’
950’

1250’

2000’
2400’
960F
970F

880F
TEMP.0F

830F

800F

850’ 950’ 1250’ 2000’ 2400’

WORKIG DEPTH IN FEET

JHARIA DIVISION
 PRODUCTIVITY
( Output / Manshift in tonnes )
1.2

1.1 1.04
1.1
0.97
1
1
0.88
0.9 0.95
Tons

0.83
0.77 0.85
0.8
0.8
0.68
0.7 0.64

0.6

0.5
'99-00 '00-01 '01-02 '02-03 '03-04 '04-05 '05-06 '06-07

Target OMS Actual

JHARIA DIVISION
 SDL PRODUCTIVITY

140
Jamadoba Group-112
120 107
100
90 94
100 85
80
Lakh Tons

76
80

125
60

108
100
40

20

0
'99-00 '00-01 '01-02 '02-03 '03-04 '04-05 '05-06 '06-07
Target SDL Productivity

JHARIA DIVISION
 0.97

Jamadoba Group -1.19

0.8
OMS in tonnes

0.6

0.4
BCCL
TISCO
0.2
ECL
CCL

0
1981-82 1986-87 92-93 97-98 2K-01 2002-03 2004-05

Jharia Division
TATA Steel
Underground Communication :
An Innovation
IMPROVEMENT IN COMMUNICATION
SYSTEM IN U/G

Network /
Silec -Sound
Manual Connection
powered
(Point to Point) ( Global )
( Local )
 Future Road Map
 PRODUCTIVITY
 Man-riding system,
 Centralized belt operation,
 Man less pumping.
 CONSERVATION
 Improved Percentage extraction by re-engineering mining
processes
 Optimum recovery of useful carbon from fossil fuel through.
 Beneficiations of intermediate size fraction
 Improving clean coal liberation efficiency of FF Cell
 Improving screening efficiency
 SAFETY
 Effective Horizontal stress management at greater depth,
 Implementation of “OHSAS”
 Comparison between Private and SECL UG mines
SECL TATA Monatte
Av.monthly prodn 15,000 26,000 60,000
(te)
OMS 1.1 1.04 6.8
Cost of production 1312 NA 600
SDL Productivity 82 125 120
Preventive M/C No system Very good Very good
Maint. system system system
Shortage of man 1/3 m/c No shortage No shortage
power for SDL opr remain idle
Un authorised 20% 3% NA
Absenteeism
Man riding No 4 man riding Not extensive
 SECL TATA Monatte
Communication Inefficient Efficient auto. Under
System manual exch exchange installtion
Standardisation No Yes Yes
Computerisation No Very high No
standard
Advance Poor 100 yr old mine Good
planning still working
Roof drilling Manual Mechanised Mechanised
Incentive In effective Very effective NA
scheme
No. of trade Union >5 1 0
Out sourcing at UG Very little Very little Very large
scale
Material mgmt Manual Fully computer Manual
 SECL TATA Monatte

Encourageme No Very good NA

nt to good system
worker
Organisation Poor Very good Good
structure
Canteen Very Poor Very good Good
Manager Poorly Highly Highly
empowerment empowered empowered empowered

Fan efficiency Below 30% Above 60% Above 60%

HRD Not good Very good Not good
 Some other good practices in private companies
1.Outsourcing of lamp room-
TATA mines has given Contract to accumulator manufacturing company,
who is maintaining 1000 lamp by just 1 person where as we are
deploying 5-6 person.
2.Multi skilled workers
In place of deploying 2 person for fitter and 2 for electrician, TATA mines
are deploying 1 person which is trained in both jobs.
3.Very high grade computerization
TATA mines, all system are fully computerised
4.Incentive scheme
In TATA incentive is given only SDL crew.
5.Piece rated SDL crew
Piece rated SDL crew is very productive.
6.Single recognised union
Singreni conducting fair and impartial election since 1988 for recognising
one union.
 Our suggestion to SECL
1. Management structure
Railway like structure will be better, Every department all
activity controlled by one person. CMD & Directors should be
from out side of CIL.
2. Computerisation
Every office should be paper less like banks, railways
3. Standardisation
All machines, plants should be standarised.
4. Incentive scheme
Incentive should be given only to SDL crew and concerned
supervisors.
5 Single union
Like singreni only one union should be recognised.
6. Energy audit
there is definite potential of 30% and more saving in power,
energy audit every year should be conducted.
 Control room operation system
7.

All UG belt conveyor, pumps, ventilation fan should be operated

from a control room.
8. UG magazine
Explosive should be transported to UG magazine by coal tub.
9.Shortage of UG manpower
There should be no shortage for production machine, it should be
fulfilled by
out sourcing or diverting man power surface to UG or by
mechanising few activities.
10. Man riding system
In extensive mines this arrangement will improve productivity.
11. Encouragement to good worker
20% facilities should be reserved for those who work hard. They
must be given out of turn promotion and other benefits.
12. Advance planning
Intelligent officer should be posted in planning department

for long term, there should be no frequent deviation.