GOVERNMENT OF INDIA ANNUAL REPORT 2017-18 MINISTRY OF COAL
Contents 1. Organisational Structure and Functions 5 2. The year at a Glance 17 3. Policy Initiatives and Reform Measures 23 4. Financial Outlays and Outlay 35 5. Public Sector Undertakings 39 6. Coal and Lignite Production 51 7. Coal Distribution and Marketing 57 8. Research & Development 67 9. Promotional and Detailed Exploration 73 10. Conservation and Development of Transport Infrastructure 81 11. Safety in Coal Mines 85 12. International Cooperation 105 13. Welfare Measures 109 14. Empowerment of Women 113 15. Vigilance 117 16. Promotion of Hindi 121 17. Information Technology 125 18. RTI information 129 Annexure-I (Audit Para) 135 Annexure-II (Organisation Chart) 137
Chapter 1 ORGANISATIONAL STRUCTURE AND FUNCTIONS ANNUAL REPORT 2017-18
Ministry of Coal ORGANISATIONAL STRUCTURE AND FUNCTIONS Introduction 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 NLC India Limited (NLCIL) and Singareni Collieries Company Limited (SCCL), a joint sector undertaking of Government of Telangana and Government of India with equity capital in the ratio of 51:49. Vision The core objectives of MoC are linked to its vision of securing the availability of coal to meet the demand of different sector of the economy in an eco-friendly and sustainable manner and the overall mission of augmenting production through Government companies as well as the captive mining route by adopting stateof-the-art clean-coal technologies; enhancing exploration efforts with thrust on increasing proven resources and developing the necessary infrastructure from evacuation of coal. Objectives Ensuring achievement of Annual Action Plan targets for coal production and off-take, OBR removal, lignite production and lignite based power generation. Infrastructure development to augment coal and washed coal production. Leveraging technology to minimize environmental externalities. Cutting edge research and development initiative. Enhancing exploration to augment resource base. Quality and reliability in customer services. Expeditious and joint solutions to inter-ministerial issues. Improving efficiency of Coal India. Attracting private investments. Allocating coal blocks in a transparent manner. Functions of the Ministry of Coal The Ministry of Coal is concerned with exploration, development and exploitation of coal and lignite reserves in India. The subjects allocated to the Ministry of Coal (includes Subordinate or other organisations including PSUs concerned with their subjects) under the Government of India (Allocation of Business) Rules, 1961, as amended from time to time as follows :- (i) (ii) (iii) (iv) (v) (vi) (vii) 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 Department of Steel is responsible. Low temperature carbonization of coal and production of synthetic oil from coal. All work related to coal gasification. Administration of the Coal Mines (Conservation and Development) Act, 1974 (28 of 1974). The Coal Mines Provident Fund Organisation. (viii) Administration of the Coal Mines Provident Fund and Miscellaneous Provision Act, 1948 (46 of 1948). (ix) (x) (xi) 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. 7
Annual Report 2017-18 (xii) Administration of Coal Mines Nationalisation Act, 1973 (26 of 1973). (xiii) Administration of Coal Mines (Special Provisions) Act, 2015. Organisation Structure The Secretariat of Ministry of Coal is headed by a Secretary who is assisted by one Additional Secretary, five Joint Secretaries (including the Financial Advisor and Nominated Authority), one Project Advisor, one Economic Advisor, twelve Directors/Deputy Secretaries/Joint Directors, eleven Under Secretaries, twenty one Section Officers, one Deputy Director, two Assistant Directors, one Controller of Accounts, one Deputy Controller of Accounts, two Senior Accounts Officers and three Assistant Accounts Officers and their supporting staff. Organisation chart of Ministry of Coal as given at Annexure-II. Subordinate office and Autonomous Organisation The following subordinate office and autonomous organizations are under the administrative control of Ministry of Coal (i) (ii) Office of the Coal Controller s Organisation (CCO) a subordinate office. Coal Mines Provident Fund Organisation (CMPFO) an autonomous body. Public Sector/Joint Sector Companies Coal India Limited (CIL) Coal India Limited (CIL) is a Maharatna company under the Ministry of Coal, Government of India with headquarters at Kolkata, West Bengal. CIL is the single largest coal producing company in the world and one of the largest corporate employers with manpower of 302785 (as on 31 st Dec, 2017). CIL operates through 82 mining areas spread over eight states of India. Coal India Limited has 394 mines (as on 31 st Dec, 2017) of which 193 are underground, 177 opencast and 24 mixed mines. CIL further operates 15 coal washeries, (12 coking coal and 3 non-coking coal) and also manages other establishments like workshops, hospitals, and so on. CIL has 27 training Institutes. Indian Institute of Coal Management (IICM) is an excellent training centre under the control of CIL and imparts multidisciplinary management development programmes to the executives. Coal India s major consumers are Power and Steel sectors. Others include cement, fertilizer, brick kilns and a host of other industries. CIL has eight fully owned subsidiary companies: Eastern Coalfields Limited (ECL), Bharat Coking Coal Limited (BCCL), Central Coalfields Limited(CCL), Western Coalfields Limited (WCL), South Eastern Coalfields Limited (SECL), Northern Coalfields Limited (NCL), Mahanadi Coalfields Limited (MCL) and Central Mine Planning & Design Institute Limited (CMPDIL). In addition, CIL has a foreign subsidiary in Mozambique namely Coal India Africana Limitada (CIAL). The mines in Assam i.e. North Eastern Coalfields is managed directly by CIL. Mahanadi Coalfields Limited, a subsidiary of Coal India Ltd is having four (4) Subsidiaries and one(1) Joint Venture, SECL has two(2) Subsidiaries and CCL has one (1) subsidiary. Coal India s major consumers are Power and Steel sectors. Others include cement, fertilizer, brick kilns, and a host of other industries. The Singareni Collieries Limited (SCCL) The Singareni Collieries Company Limited (SCCL) is a Joint Venture of Govt. of Telangana and the Govt. of India with equity participation in the ratio of 51:49 respectively. SCCL is having 10,846 Million Tonnes of Proved reserves in the Pranhita Godavari Valley Coalfield. SCCL is producing around 9.5% of the total all India Production. SCCL is having the registered office in Kothagudem, Bhadradhri District of Telangana. SCCL is presently operating 18 Opencast Mines and 29 Underground Mines in the six districts of Telangana State with manpower of 54,744. Naini coal block was allotted to SCCL in August 2015 in the Angul district of Odisha for which pre-mining activities are in process. Penagaddppa coal block located in the Bhadradri District of Telangana State was allotted to SCCL on 15 th December, 2016. 8
ORGANISATIONAL STRUCTURE AND FUNCTIONS Presently, 2X600 MW Singareni Thermal Power Station is in operation in the Mancherial district of Telangana the company has also initiated proposal for expansion by constructing 1X800 MW super critical 3 rd unit. Plant Load Factor of Singareni Thermal Power Station is 90% during April to December 2017, Highest station PLF of 98.43% was achieved in August 2017. Generation of Power during 2017-18 (upto Dec 17) is 9,217 MU. SCCL has also proposed to set up 50 MW Solar Power Plant in Pedapalli district of Telangana at a cost of Rs. 225 crores. NLC India Limited (NLCIL) NLC India Limited, a Navratna company with its registered office at Chennai and corporate office at Neyveli in Tamil Nadu is a pioneer among the Public Sector Undertakings in the energy sector. NLC India Limited operates Three Opencast Lignite Mines of total capacity of 28.5 Million Tonnes Per Annum (MTPA) at Neyveli and one opencast lignite mine of capacity 2.1 MTPA at Barsingsar, Rajasthan. Four Thermal Power Stations with a total installed capacity of 2990 Mega Watt (MW) at Neyveli and one Thermal Power Station at Barsingsar, Rajasthan with an installed capacity of 250 MW. NLCIL has set its footprint in generation of renewable energy through its Wind power plant with a installed capacity of 51 MW in Kazhaneerkulam, Tirunelveli District, Tamil Nadu. NLCIL had earlier setup a 10 MW Solar Power Project at Neyveli. Solar power project (130MW) in Neyveli, has been commissioned and dedicated to the Nation on 1 st January 2018 by Secretary to GOI, MoC. A coal based Thermal Power Plant at Tuticorin, Tamil Nadu with two units of 500 MW capacity each (1000 MW) through NLC Tamil Nadu Power Limited (NTPL), a joint venture between NLC India Limited and TANGEDCO (equity participation in the ratio of 89:11) is in operation. Hence, the total power generating capacity of NLC India Limited as on December 2017 is 4431 MW. Three Thermal Power Stations and the three Mines at Neyveli as well as the lignite Mines and Thermal Power Station in Barsingsar, Rajasthan are certified with ISO 14001 (Environment Management System), ISO 9001 (Quality Management System) and OHSAS 18001 (Occupational Health and Safety Management System). NLC India Limited s growth is sustained and its contribution to India s social and economic development is significant. Coal Controller s Organization The Coal Controller s Organization is a subordinate Office of Ministry of Coal, having its headquarters at Kolkata and field Offices at Dhanbad, Ranchi, Bilaspur, Nagpur, Sambalpur, Kothagudem and Asansol. Each field office is headed by one GM/ DGM level executive working in the capacity of Officer on Special Duty (OSD) being supported by other technical officials. Apart from carrying out inspections for ascertaining quality in selected mines, the field officers also carry out regular inspections to ensure compliance with specific orders relating to coal and resolving statutory complaints. Besides looking after quality surveillance noted above, field officers are also entrusted with field assignments associated with CCDA assistance under Coal Mine (Conservation and Development) Rules 1975 ( amended in 2011); opening/ re-opening permission of seams of mines under Colliery Control Rules 2004 and coordination with the coal companies. In addition four Officer-on-Special Duty are posted in the Coal Controller s Organization, Kolkata for coordinating the field offices. This office also looks after the coal mines under NEC command area and renders assistance to Coal Controller on various issues. The office of Coal Controller have a statistical wing consisting of two Indian Statistical services officers and other supporting staff which is responsible for collection, compilation and publication of Coal Statistics on regular basis. CCO is the major source of Coal Statistics in Government of India. CCO is also supported by a Director, Dy. Director, Dy. Assistant Coal Controller and other Officials who assist the CCO in other technical and administrative works. The Coal Controller s Organization discharges various statutory functions derived from the following statutes: (i) The Colliery Control Rules, 2004. (ii) The Coal Mines (Conservation & Development) Act, 1974 and The Coal Mines (Conservation & Development) Rules, 1975 (amended in 2011) (iii) The Collection of Statistics Act, 2008 and the Collection of Statistics (Central) Rules, 2011. 9
Annual Report 2017-18 (iv) The Coal Bearing Areas (Acquisition & Development) Act, 1957 (20 of 1957) The Coal Controller s Organisation also discharges the following functions:- (a) (b) (c) Job of monitoring of coal blocks (Vested & Allotted) Job of monitoring of washeries Follow up of submission of Mine Closure Plan and act as the exclusive of Govt of India for signing up Escrow account agreement with different coal/ lignite companies. A brief description of Coal Controller s Organization s performance during the period 1 st April, 2017 to 31 st December, 2017 and provisional for period from 1 st January, 2018 to 31 st March, 2018 are given as under :- (1 Grant of Permission for opening and reopening of coal mines:- Coal Controller s Organisation granted permission for opening and re-opening of 15 Coal mines/lignite mines during 1 st April, 2017 to 31 st December, 2017 and provisional figure for period from 1 st January, 2018 to 31 st March, 2018 is expected to be 12 mines. (2) Disposal of cases under Section 8 of the Coal Bearing Areas (Acquisition and Development) Act, 1957 During the period from 1 st.april, 2017 to 31 st.december, 2017, Coal Controller submitted reports to the Ministry of Coal under section 8 of CBA Act, 1957 in respect of 9 notifications and provisional figure for period from 1 st January, 2018 to 31 st March, 2018 is 04 notifications. (3) Coal Samples collected & analyzed, Statutory Complaint Received & Settled:- Under the Colliery Control Rules, 2004, and under the Coal Mines (Conservation & Development) Amendment Rules, 2011, Coal Controller is to approve the quality of Coal dispatched from collieries and also settle quality complaints of consumers. Statutory Complaints Received till 31.12.2017 40 nos. Action has been taken to resolve the cases. For grade determination purposes for 2017-18, CCO hired the expertise and technical skills of India s best institutions like IIT (Guwahati), IIT (ISM) Dhanbad, IIT (BHU), Varanasi, IIEST (Shibpur) and IICT (Hyderabad). Under CCO s Supervision Govt. Organisation and Academic Institutions conducted the sampling program during 1 st April, 2017 to 31 st December, 2017 and collected 957 samples. (4) Collection of Excise Duty:- 1 st.april, 2017 to 31 st December, 2017 = Rs. 323.21 Crore. 1 st January, 18 to 31 st March, 18 expected to be collected = Nil*. * However after reconciliation, the balance amount of SED, if any, will be collected. Note; Through Taxation Laws Amendment Act, 2017, the cess imposed on coal (Stowing Excise Duty - SED) as per the Coal Mines (Conservation & Development) Act, 1974 has been abolished wef the date of GST role out i.e., 01.07.2017. (5) Collection, Compilation and Publication of coal Statistics CCO being the sole agency for collection, compilation, publication and dissemination of data regarding different parameters of production and dispatch of coal and lignite, provides monthly data to Central Statistics Office, RBI, DIPP, Indian Bureau of Mines and other national and international organizations. It also publishes Annual Coal Directory and Provisional Coal Statistics. (6) Monitoring and progress of Coal Blocks Coal Controller s Office collects information regarding Efficiency Parameters of captive coal blocks required to be submitted as per CMDPA and consolidate reports. It also monitors the Bank Guarantee issue related to earlier allocated coal blocks and sends reports as and when required by Ministry. (7) Compliance of Mine Closure Plan and Escrow Account agreement. Coal Controller office has been entrusted to perform the implementation and monitoring of Mine closure activities of the mining areas as per approved Mine Closure plan (Progressive and Final), certification of works done by Mine owners from Government Notified Institutes like CMPDIL/NEERI, Nagpur/ISM, Dhanbad/IIT KGP/IIEST, Shibpur regarding complete safety zone fencing, expenditure incurred for protective and reclamation, rehabilitation works and opening a fixed deposit Escrow Account with any scheduled Bank for depositing annual mine closure 10
ORGANISATIONAL STRUCTURE AND FUNCTIONS cost as per approved Mine Closure Plan where Coal Controller is an exclusive beneficiary under the provision of MOC s guidelines for preparation of Mine Closure Plan dated 7.1.2013. The Escrow amount for annual mine closure cost with interest on deposited for 2016-17 period (realised from April. 17 to upto Dec 2017) to the Escrow Account of scheduled bank is Rs. 964.065 Crores (Provisional). During 2017-18 till Dec, 2017 there were total 28 Tripartite Escrow Agreement executed for opening an Escrow Account Again upto 31 st Dec. 2017 during the period 2017-18, 521 tripartite with Government and Private companies for 28 coal and lignite Escrow Accounts agreements have been executed between the mines. Out of 28 mines, 5 coal mines are under CIL/ subsidiary coal/lignite companies with scheduled banks and CCO covering companies, 18 mines under SCCL and 4 captive coal mines and 546 coal and lignite mines. The total amount deposited with 1 lignite mine. interest upto 31 st Dec, 2017 in 2017-18 period to the Escrow Account stands at Rs. 6381.413 Crores (Provisional). The status of opening and deposition of annual closure cost to Escrow Account upto Dec. 2017 during 2017-18 No. of Tripartite Escrow Agreement signed with CCO upto Dec. 2017 Number of Mines for which Escrow A/c has been signed. Principal Amount deposited for 2016-17 to the Escrow Account during 2017-18 (till Dec. 2017) (Rs./- in Crore) Total Amount deposited to the Escrow Account since starting to till 31.12.2017. (Rs./- in Crore) 521 546 964.065 6381.413 Reimbursement of claims under Progressive and Final Mine Closure Plan. As on Dec. 2017, CCO has received claims for reimbursement under Progressive/Final Mine Closure Plan in respect of 28 Nos. of Coal/ Lignite Mines out of which claims have been disbursed so far in respect of 8 Nos. of Coal/Lignite Mines which are given as follows: Sl. No. Name of Company Name of Mines Amount released under Progressive/ Final Mine Closure Plan (Fig. in Rs. 1. SECL Gevra OCP 514721000.00 2. SovaIspat Ltd Ardhagram coal block 10827980.00 3. NCL Block-B OCP 184980903.00 4. NCL Khadia OCP 195383940.00 5. NCL Nigahi OCP 375150146.00 6. Neyveli Lignite Corporation India Ltd Mine-I (incl. Expn.) 1105471653.00 7. Neyveli Lignite Corporation India Ltd Mine IA 195900707.00 8. Neyveli Lignite Corporation India Ltd Mine-II 1141927708.00 Total 3724364037.00 (8) Work as Commissioner of Payments The Coal Controller is functioning as ex-officio Commissioner of Payments. The performance of the Commissioner of Payments is as under. 11
Annual Report 2017-18 Sl No. Particulars 1 Number of collieries nationalised by the Central Government and corresponding colliery-accounts opened by the Commissioner of Payments The Coking Coal Mines (Nationalisation) Act, 1972 The Coal Mines (Nationalisation) Act, 1973 226 711 2 Number of colliery-accounts closed up to 31-03-2017 187 627 3 Number of colliery-accounts closed during 2017-18 (April, 2017 to December, 2017) nil nil 4 Number of colliery-accounts yet to close as on 31-12-2017 39 84 5 Compensation amount disbursed during 2017-18 (up to December, 2017) Rs. 1.89 Lac Rs. 15.66 Lac 6 Amount left for disbursement as on 31-12-2017 Rs. 403.97 Lac Rs. 848.61 Lac By virtue of The Coal Mines (Special Provisions) Act, 2015, the Commissioner of Payments has been appointed to disburse the compensation amount payable to him by the Nominated Authority, Ministry of Coal, also appointed under this Act. The payments made for the year 2015-16, 2016-17 and 2017-18 (up to December, 2017) are given as under:- Year Amount disbursed in Rs. 2015-16 82,39,39,830/- 2016-17 944,69,37,538/- 2017-18 (up to Dec 17) 196,79,26,042/- COAL MINES PROVIDENT FUND ORGANISATION (CMPFO) The Coal Mines Provident Fund Organisation 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 Central and State Government s representatives, employers representatives and employees representatives. The organisation renders services to 4.45 lakh Provident Fund subscribers and about 4.95 lakh pensioners approximately as on 31 st March 2018(expected). The headquarters of CMPFO is at Dhanbad and its 22 Regional Offices are spread all over the Coal producing states in the country. Coal Mines Provident Fund Scheme As on 31.12.2017, the total number of coal mines & office units covered under the Scheme stood at 894, excluding coke plants operating in the Private Sector. Live membership of the Provident Fund Scheme, 1948 as on 31.3.2018 is expected to be 4.45 lakh approx. During 2017-18 i.e. (01.04.2017 to 31.12.2017) Coal Mines Provident Fund contributions including voluntary contributions amounted to Rs. 4212.55 Crore approx. and between 01.01.2018 & 31.03.2018 Rs. 1404.18 Crore approx. is expected to be received in the Coal Mines Provident Fund raising thereby the total contributions to Rs. 45469.02 Crore approx. The entire accumulation in the fund is invested in accordance with the guidelines laid down by the Ministry of Finance. The total value of the fund s investment up to 31 st Dec, 2017 stood at Rs.76,029.00Crore (including SDS investment of Rs.16522.50 Crore).The Incremental Investment (Face Value) from 01.04.2017 to 31.12.2017is Rs.2524.00 Crore approx. and from 01.01.18 to 31.03.18 is expected to be Rs. 1000.00 Crore approx. Refund from Provident Fund during 2017-18 (upto 31 st Mar, 18) together with the advances paid is indicated below:- Refund and Advance cases of Provident Fund No of cases settled (from 01.04.2017 to 31.12.2017) and disbursed # Provident Fund Refund Cases 19458 9000 approx. Marriage Advance 3000 approx.} Education Advance 71778 No of cases expected to be settled (from 01.01.2018 to 31.03.2018) and disbursed # House Building Advance The amount disbursed on P.F. and Advances Rs. 4782.06 Crores approx. Rs. 1594.02 Crore approx. # all figures are provisional. 12
ORGANISATIONAL STRUCTURE AND FUNCTIONS The cost of administration of CMPF Scheme is met out of the administrative charge @3% paid by the Coal companies to the CMPFO. As a result of emphasis on extending social security benefits to all workers of Coal Mines, the coverage of contractor s worker under the provisions of CMPF/EPF Act increased from 82348 (31.3.2017) to 87570 (31.12.2017). Due to constant efforts and repeated follow-ups pendency in settlement of cases has declined considerably. The trend of pendency in Settlement of Provident Fund refunds is shown in the figure given below: Coal Mines Deposit Linked Insurance Scheme In the event of death of an employee in harness who was a member of Coal Mines Provident Fund Scheme, his/her nominee was 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/-. In accordance with the Scheme, the employers were required to contribute at the rate of 0.5% of the aggregate wages of covered workers. The Central Government was also required to pay half of the amount contributed by the employers under the Scheme. Currently, for meeting the cost of administration of this scheme, Private Sector employers contribute @ 0.1% of aggregate wages and the Central Government contribute 50% thereof i.e. 0.05% of aggregate wage. 13
Annual Report 2017-18 The executive cadre employees of CIL were exempted from operation of the said Scheme vide Gazette Notification No. S.O.822 (E) dated 24.03.2009. The workers of the CIL and its subsidiaries were exempted earlier from the operations of the Scheme by Ministry of Coal. Coal Mines Pension Scheme, 1998 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 suppression of the Coal Mines Family Pension Scheme, 1971, except in respect of things done or omitted to be done before such supersession, the Central Government has framed the Coal Mines Pension Scheme, 1998. The Coal Mines Pension Scheme has come into force with effect from the 31 st day of March, 1998. The total pension claims settled and disbursed under the Coal Mines Pension Scheme, 1998 during 1.4.2017 to 31.12.2017 and 1.1.2018 to 31.3.2018(expected)are indicated below: Coal Mines Pension Scheme, 1998 No of cases settled (from 01.04.2017 to 31.12.2017) and disbursed No of cases settled (from 01.01.2018to 31.03.2018) and disbursed # The number of new claims of Pension settled 21900 11000 approx. The amount disbursed on Coal Mines Pension Scheme, 1998 # all figures are provisional. Rs. 1961.35 Crores Rs.700.00Crore The Pension Fund consists of the following:- (a) (b) (c) (d) (e) Net assets of the Coal Mines Family Pension Scheme, 1971 as on the appointed day; 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 the fund, to be transferred from the appointed day from the Fund of the employee. An amount equivalent to two percent of the Basic and dearness allowance paid of the employee from the first day of April, 1989 or the date of joining, whichever is later, up to the 31 st day of March, 1996 and two percent of the notional salary of the employee from the 1 st day of April, 1996 or the date of joining, whichever is later, to be transferred from his salary. 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, to be transferred from the salary of the employee. 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 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 Pension members including new optee in terms of the provisions of the Scheme. During 2017-18 i.e. net accretion in the pension contribution of in-service members as on 31 st Dec, 2017 is Rs.620 crore and from 1 st Jan, 2018 to 31 st Mar, 2018 is expected to Rs.220.00 croreraising thereby the total accretions to Rs.1915.12 crore approx. (including Government Share and interest). Coverage (a) (b) (c) (d) All employees who were members of the erstwhile Coal Mines Family Pension Scheme, 1971 and were on rolls on 31 st March, 1998. All such employees who are appointed on or after 31 st March, 1998. 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. All such employees who died while in service during the period 01.04.1994 to 31.03.1998 are treated as 14
ORGANISATIONAL STRUCTURE AND FUNCTIONS Benefits :- (a) (b) (c) (d) deemed optee of the scheme vide G.S.R. No. 521(E) dated 12.08.2004. Monthly Pension. (Superannuation, Voluntary Retirement, exit from service) Disablement Pension. Monthly widow or widower pension. Children Pension (e) (f) Orphan Pension. Ex-gratia Payment. Due to constant efforts and repeated follow-ups pendency in settlement of cases has declined considerably. The trend of pendency in settlement of Pension cases is shown in the figure given below: Note: All figures for the year 2017-18 are provisional (un-audited). 15
Chapter 2 THE YEAR AT A GLANCE ANNUAL REPORT 2017-18
Ministry of Coal THE YEAR AT A GLANCE Coal Reserve in India 315.149 billion tonne of Coal reserves have been estimated by the Geological Survey of India (01.04.2017). The reserves have been found mainly in Jharkhand, Odisha, Chhattisgarh, West Bengal, Madhya Pradesh, Telangana and Maharashtra. Lignite Reserves in India The Lignite reserves in the country are estimated at around 44.70 billion tonnes (1.4.2017). The major deposits are located in the State of Tamil Nadu, followed by Rajasthan, Gujarat, Kerala, West Bengal, Jammu and Kashmir and Union Territory of Puducherry. Coal Production The overall production of Coal for 2017-18 was projected at 730.10 MT. During the period April to December 2017 the actual production was 461.42 MT compared to 452.97 MT during corresponding period of 2016-17 and showing a growth of 1.9 per cent. The Company-wise details for coal production from CIL, SCCL and Others are given below:- Name of Company 2016-17 Actual (Provisional) Target (BE) Target (RE) Production (2017-18) in MT Actual (Apr -Dec. 2017) Achievement (%) Growth (%) (Apr-Dec.16) Anticipated during Jan 18-March 18 CIL 559.46* 600.00 600.00 383.93 64 1.6 216.07 SCCL 59.53 62.00 62.00 41.99 68-1.0 20.01 Captive 32.54 46.10 46.10 27.34 59 11.09 18.76 Others 11.25 22.00 22.00 8.15 37-0.18 13.85 Total 662.79 730.10 730.10 461.42 63 1.9 268.68 * * Including production of Gare Palma (GP) IV/2&3 and GP IV/1. Coal Dispatch During the period Apr 17 Dec 17 Raw Coal dispatch from CIL was 421.22 MT (Provisional) against 391.58MT during the same period last year, registering a growth of 7.6 % over corresponding period of previous year. Company wise Raw Coal Despatch Company Apr 17- Dec 17 Apr 16-Dec 16 % growth Target Actual % achievement Actual CIL 431.93 421.22 98 391.58 7.6 SCCL 62.00 41.99 67.72 61.34-1.01 19
Annual Report 2017-18 Company wise Raw coal Dispatch projection on BE figure basis (In Million tonnes) Company Jan 18-Mar 18 Jan 18- Mar 18 Jan 17-Mar 17 % growth Target Anticipated % achievement Actual CIL 167.83 178.54 106 151.47 17.9 Sector wise Raw coal Dispatch (Jan-Mar 18 projection on BE basis) (In Million tonnes) Sector Jan 18-Mar 18 Jan 17-Mar 17 % growth in Jan 18-Mar 18 over Jan 17-Mar 17 Steel * 2.00 1.92 4.2 Power ( Utility )** 128.95 118.05 9.2 Power( Captive)# 14.09 8.38 68.1 Cement 1.98 1.04 90.7 Others 31.52 22.09 42.7 CIL 178.54 151.47 17.9 * includes coking coal feed to washeries, direct feed and blendable to steel plants, ** includes non-coking coal feed to washery and Bina Deshaling Plant for beneficiation and special forward e-auction to power # Captive Power includes dispatches to fertilizer sector Sector wise Raw Coal Dispatch (Provisional) Sector Apr 17-Dec 17 Apr 16-Dec 16 (In Million tonnes) % growth in Apr 17-Dec 17 over Apr 16-Dec 16 Steel * 4.11 4.84-15.0% Power ( Utility )** 331.44 308.24 7.5% Power( Captive) *** 29.02 22.47 29.2% Cement 2.95 2.64 11.9% Others 53.69 53.39 0.6% CIL # 421.22 391.58 7.6% * includes coking coal feed to washeries, direct feed and blendable to steel plants ** includes non-coking coal feed to washery and Bina Deshaling Plant for beneficiation and special forward e-auction to power *** Captive Power includes despatches to fertilizer sector # excludes colliery consumption 20
THE YEAR AT A GLANCE Coal Supply Actual Raw Coal Supply / Offtake during 2016-17, Supply Plan 2017-18 and Actual Coal supply during 2017-18 is given below Source 2015-16 2016-17 2016-17 2016-17 4th Qtr 2016-17 4th Qtr Actual ( BE) ( Actual) (BE) (Actual) (In Million tonnes) 2017-18 2017-18 (Actual) (BE) till till Dec Dec CIL 534.50 598.61 543.32 164.64 151.54 432.11 421.41 Sector wise Dispatch- SCCL: Sector April December 2017 April December 2016 Growth (%) January March 17 (anticipated) (In Million tonnes) 2017-18 (Anticipated) Power (utility) 38.89 36.46 6.68 14.99 53.88 Power (CPP) 2.03 1.25 61.95 0.75 2.78 Steel (SI) 0.160 0.06 183.93 0.15 0.31 Cement 1.87 1.48 26.15 0.70 2.57 Others 3.91 3.45 13.44 1.54 5.46 Total : SCCL 46.86 42.70 9.75 18.14 65.00 Lignite Production The Neyveli Lignite Corporation of India Ltd. (NLCIL) is an integrated mining cum Power Company with open cast lignite mines linked to Thermal Power Stations. During the period April to December 2017 lignite production and power generation by Neyveli Lignite corporation was 16.43 MT and 15277.55 MU respectively against the RE target of 24.84 MT for Lignite and 20500 MU for power generation. Details are given in the table: Item 2016-17 Actual (Prov.) 2017-18 Target BE 2017-18 Target RE 2017-18 Actual (April - Dec.17) Ach. (%) Growth (%) Anticipated Jan17-March17. Lignite MT 27.62 26.80 24.84 16.43 94.7-8.7 9.45 Power Generation (MU) 21033.10 22000.00 20500.00 15277.55 95.36-0.4 5979.49 21
Chapter 3 POLICY INITIATIVES AND REFORM MEASURES ANNUAL REPORT 2017-18
Ministry of Coal Policy Initiatives and Reform Measures Measures related to augmenting Production and Efficiency in Coal Sector: Enhanced exploration efforts CMPDI is the nodal agency for implementing the Plan scheme of Detailed Drilling in Non-CIL blocks. CMPDI executes the job through MECL and also through outsourcing. The actual drilling vis-à-vis targets in non-cil/captive mining blocks during last five financial years, anticipated drilling during 2017-18 and the target for the financial year 2018-19 are as under: Non-CIL Blocks (Drilling in Lakh Metre) Year Target Actual Growth % w.r.t. Previous year 2012-13 1.75 2.28 2.70 2013-14 3.62 2.38 4.39 2014-15 4.16 2.82 18.48 2015-16 4.82 2.87 1.77 2016-17 3.48 3.08 7.32 2017-18 4.99 3.92 (Anticipated) 2018-19 6.20 27.27 (Anticipated) The shortfalls in target achievement are due to many factors, including law & order problems in many coal block areas, nonavailability of Forest clearance, etc. CMPDI is making efforts to increase the departmental capacity from 4.41 lakh m in 2016-17 to 4.75 lakh m in 2017-18 to cater to the increased requirement of detailed drilling in CIL & Non- CIL/ Captive blocks. The actual drilling in CIL blocks during the last five financial years, anticipated drilling during 2017-18 and the target for the financial year 2018-19 are as follows: CIL Blocks (Drilling in Lakh Metre) Year Target Actual Growth % w.r.t. Previous year 2012-13 4.07 3.35 23.20 2013-14 5.38 4.59 37.01 2014-15 7.84 5.46 18.95 2015-16 10.18 7.02 28.57 2016-17 7.52 8.18 16.52 2017-18 7.50 8.58 (Anticipated) 2018-19 6.80 4.89 (Anticipated) Renewed policy thrust to increase coal production: Coal India Limited (CIL) An exercise has been carried out to prepare a roadmap for achieving a production level of 1Bt of coal by the year 2019-20. So far, mines/ projects to produce about 908.10 MT in 2019-20 has been identified. In 2016-17, against the target of 598.61 MT. 554.14 MT, of coal production was achieved which was 92.57% of the targeted coal production. In 2017-18 Annual Plan target of coal production is pegged at 600 Mt. In 2018-19, the envisaged coal production target as per 1 billion tonne (BT) document is 773.70 Mt (excluding the production of NEC) and, as per Annual Plan proposal, the production target is 630.00 MT. The group-wise production during 2016-17 and 25
Annual Report 2017-18 projection for 2017-18 and 2018-19 are as follows: (Figs. in MT.) CIL 2016-17 2017-18 2018-19 BE Act. (Prov.) AP Tgt. AP Proposal* 1 Bt Projection Existing 33.58 33.79 36.36 34.43 Completed 281.64 267.58 269.56 235.64 177.64 Ongoing Projects 281.08 245.50 289.53 353.81 502.65 Future Projects 2.32 1.95 0.81 0.60 93.40 Gare Palma block - 5.32 3.75 5.52 - Total 598.61 554.14 600.00 630.00 773.70 *Subject to the approval of Ministry A major growth in production is envisaged from North Karanpura in CCL, CIC & Korba of SECL and IB & Talcher coalfield in MCL. Completion of Projects and Expansion of Existing Projects Coal India Limited (CIL) There are 153 on-going projects at different stages of implementation. Implementation of these projects is being monitored through a well structured project monitoring mechanism. All of these projects are being reviewed on fortnightly basis at Area level and on monthly basis at company level. Projects costing more than Rs 500 crore and with capacity of 3 MTY/year and above are reviewed by the Secretary, Ministry of Coal on Quarterly basis. In addition to that, Performance of all projects of Rs 150 crore and above is monitored by Ministry of Statistics and Programme Implementation (MOSPI). An Online Coal Project Monitoring Portal (CPMP) has been established in the Ministry of Coal for resolving issues pending at the State level and at Central Ministries. Ministry monitors ongoing projects through updated information received on its Coal Project Monitoring Portal (CPMP). Further, PMG also monitors the implementation of these projects through portal managed by PMG website of Cabinet Secretariat. In order to meet the growing demand of coal, constant emphasis is being placed on taking up of new projects in CIL. Initiatives are being taken for development of new projects through Mine Developer Operator (MDO) route / outsourcing. Not only several new projects have come up, but many of the existing and ongoing projects have also undergone capacity expansion, wherever feasible. Even some of the existing mines have been reorganized for better management and control. CIL has also identified 65 future projects against 1 Bt Coal Production target by 2019-20. So far 23 projects having capacity of 110.29 MT/year and capital expenditure of Rs. 25384.42 crore have been approved. Measures being taken to increase coal production In 2017-18, the targeted coal production from On-going projects of CIL was 289.53 Mt. (Ref Annual Plan 2017-18 of MoC). As per Annual Plan proposal of 2018-19, CIL envisages to produce 353 Mt. from these projectssame resulting in addition of 64.28 Mt. from the ongoing projects. In respect of CIL, major increase in production is envisaged from on- going projects mainly from four subsidiaries viz. SECL, MCL, CCL & NCL. Out of 153 on-going projects, clearances are available for 97 projects with a total output capacity of 352.03Mt. Production of 207.71 Mt. has been achieved in 2016-17 from these 97 projects. The balance 55 projects, with a total capacity of 223.00 MTY, will require clearance to achieve their planned capacity. However with part clearance obtained in forest land, these projects have produced 41.40 MT. in 2016-17. 26
POLICY INITIATIVES AND REFORM MEASURES CIL has taken the following steps to increase production of coal: High capacity mines are being planned with State-of-the Art mechanization. Mines are being modernized for increasing productivity both in underground & opencast mines depending upon geo-mining conditions. Improving capacity utilization through efficiency improvement and modernization. Ensuring implementation of on-going projects in time bound manner to achieve targeted production as per schedule. Capacity augmentation of running projects through special dispensation under the EP act 2006 Effective monitoring & persuasion of issues related to projects with related Ministries & State Government. Projects being formulated for mining under MDO mode In order to maintain the planned growth in production and evacuation in future, CIL has undertaken three major Railway Infrastructure Projects to be executed by Indian Railways Authority in growing coalfields of SECL, MCL & CCL. Effective & persistent support from the Ministry of Coal etc. Technology development and Modernization of Mines in CIL A study has been conducted by M/S KPMG for assessment of the need for up gradation of current technology under practice in CIL mines including UG mines and scope of further modernization. They have submitted their report which is under examination for implementation. Apart from this a consortium of IIT-ISM (Dhanbad), SCCL and PWC has been engaged for Study on Underground Coal Miningproblems, potential, technology, modernization, production and safety which is conducting study of 90 underground mines of CIL. The final report is awaited. Allocation of coal mines cancelled/de-allocated by Hon ble Supreme Court of India (i) The allocation of 204 coal mines de-allocated by Hon'ble Supreme Court is now made under the provisions of the Coal Mines (Special Provisions) Act, 2015. Under the provisions of the said Act, 89 coal mines have so far been successfully allocated. Of these 89 coal mines, 31 have been allocated through e-auction (30 to private companies and 1 to a Government company) and 58 have been allotted to Government Companies. Sector-wise allocation of these 89 coal mines are: 50 coal mines to the regulated sector i.e. power, 26 coal mines to the non-regulated sector i.e. iron & steel, cement and captive power and 13 coal mines for sale of coal. Details of 89 allocated coal mines is attached as per Annexure - A (ii) (a) Directions have also been issued by the Central Government to Nominated Authority vide O.M. dated 27.09.17 for allotment of 50% of North of Arkhapal Srirampur (Northern Part) under Rule 8(2)(a)(ii) and Rule 11(1)of the Coal Mines (Special Provisions) Rules, 2014 for specified end use Production of fertilizer. (iii) (iv) (v) Out of 89 allocated coal mines, the auction and allotment from 81coal mines allocated so far have been estimated at more than Rs 3.94 lakh crores over the life of the mine/ lease period, which shall be devolving entirely to the coal bearing States. Estimated Revenue from remaining 8 coal mines is not included in the above figure of Rs.3.94 lakh crores due to lack of extractable reserves. Under the provisions of the Coal Mines (Special Provisions) Act, 2015 and Rules made thereunder, auction of coal mines for sale of coal will be undertaken. Accordingly, CCEA Note on the methodology for auction of Coal Mines / Blocks for sale of coal under the Coal mines (Special Provisions) Act, 2015 and the Mines and Minerals (Development & Regulation) Act, 1957 has been sent to Cabinet Secretariat on 26 th / 27 th Oct 17 for consideration by the CCEA. Post approval of the methodology by the CCEA, auction of coal mines for sale of coal will be undertaken. The Ministry has formulated a methodology to provide the coal block allottee PSU s with some flexibility in utilization of coal extracted from the coal mines allotted under the Coal Mines (Special Provisions) Act, 2015 for optimum utilization of coal mine for the same end uses in the public interest and to achieve cost efficiencies. 27
Annual Report 2017-18 Annexure-A Since commencement under CM(SP) Act, 2015 total coal produced is 38.03 Million Tonnes till November, 2017. The amount of compensation disbursed for the financial year 2016-17 is INR 944,69,37,538 and for the year 2017-18 (upto Dec, 2017) is INR 1,96,79,26,042.7. Allotment of Coal/Lignite Blocks under MMDR Act Auctioned coal mines - Out of the 17 Schedule II coal mines (coal mines which were operational at the time of cancellation) auctioned under the provisions of the Coal Mines (Special Provisions) Act, 2015, mining operations have commenced/mine opening permission granted in 12 coal mines. The remaining Schedule II coal mines are awaiting various clearances for operationalization. Further, out of the 14 Schedule III coal mines, 1 coal mine has been granted Mining Opening Permission. Remaining Schedule III coal mine are scheduled to be operational from 2018 onwards as they were not operational at the time of the allocation. 3 Schedule III (including one operational) coal mines are ahead of timelines. Allotted coal mines- Out of the 18 Schedule II coal mines (coal mines which were operational at the time of cancellation) allotted to Public Sector Undertakings (PSUs)/Gencos, 3 coal mines are operational/started mine operations as on date. The remaining Schedule II coal mines are awaiting various clearances/ judgment for operationalization. Out of the 35 (25 Schedule III+ 10 Schedule I) coal mines 2 coal mines have received mine opening permissions. The scheduled III & I coal mines are scheduled to be operational from 2018 onwards as they were not operational at the time of the allocation. 8 Schedule III/ Schedule I coal mines are ahead of timelines. The total revenue generated till December, 2017 is Rs. 4259.52 crore (excluding Royalty, taxes, cess etc.). Under the provisions of Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) and Auction by Competitive Bidding of Coal Mines Rules, 2012 [ACBCM Rules], 13 Coal Blocks [11 for end use power and 02 for commercial mining] have been allotted to Government Companies (Central/ State). Recently, on the request of Government of Madhya Pradesh, Gondbahera Ujheni coal block allotted to Madhya Pradesh Power Generating Company Ltd. has been de-allocated on 25-09-2017. Hence, presently 12 coal blocks stand allotted under the provisions of MMDR Act,1957. Also, 3 lignite blocks have been allotted under the provisions of MMDR Act, 1957 and ACBCM Rules, 2012 to the State PSU of Gujarat [1 for end use power and 2 for commercial mining]. Coal Block Development & Production Agreement (CBDPA) have been signed for 10 coal blocks and Lignite Block Development & Production Agreement (LBDPA) has been signed for 1 lignite block. CBDPA / LBDPA is signed between the Central Government and the allottee Government Companies and the same ensures proper monitoring and development of coal / lignite blocks. Coal Blocks Allocation Rules, 2017 [CBA Rules] were notified on 13.07.2017 which have repealed the ACBCM Rules 2012. However, the allocations already made under ACBCM Rules, 2012 has been maintained under the CBA Rules. Rule 17 of the CBA Rules states that any action taken under the ACBCM Rules shall be deemed to have been done or taken under the corresponding provisions of these rules and any process of allocation pending under the ACBCM Rules, 2012 shall continue and after the final allocation of the coal block the remaining procedure and conditions under the corresponding provisions of CBA Rules shall be applicable. Henceforth, the coal/lignite blocks to be allocated under the provisions of MMDR Act will be allocated as per the procedure prescribed in CBA Rules, 2017. No coal/lignite block has been allocated under the provisions of CBA Rules so far. 28
POLICY INITIATIVES AND REFORM MEASURES Quality and Third Party Sampling Recent Decisions For reducing the difference in declared grade and analyzed grade, causing slippages of grade, CCO was directed to undertake sampling of 871 Mines (seams)/ Sidings/Size fraction through reputed academic institutions and finalize grade for 2017-18 based on the results. In the final declaration of grades, 177 mines were downgraded which include 355 size fraction including the siding, while about 40 mines were up-graded which includes 67 size fractions including the sidings. With effect from 1 st April 2017, invoices are being raised by coal companies on revised grades. To address the concerns of consumers (Power Utilities) regarding coal quality, third party sampling procedure (SOP) was put in place. Tripartite Memorandum of Understanding (MoU) were signed between Supplier (coal companies), Purchaser (Power Utilities) and CIMFR for sampling and testing of coal at the loading end. The sampling and coal testing charges are borne by the buyer and the seller equally. Till date CIMFR has signed tripartite agreement for 513 Million Tonne on annualized basis and out of which sampling is continuing for about 492 Million Tonne, covering 94% supply to Power Utilities under FSA. For extending sampling facility for Non-Power consumers taking coal through linkage auction and supply to Power Utilities under Special Forward auction for Power, QCI and IIT-ISM have been engaged. Both QCI and ISM have started signing tripartite agreement with different Subsidiary Companies of CIL and the consumers. QCI has already started collection and analysis of coal across coal cos. Consequent to approval, commensurate direction for coverage of Third Party Sampling to following remaining categories has also been issued to coal companies. (I) (II) (III) (IV) (V) Non-Power FSAs. Coal Supplied to SNAs Spot e-auction Special Spot Auction Exclusive e-auction Now, third party quality validation is available to consumers on all despatches of coal from CIL sources. It has been directed that Power Utility and coal company should do grade reconciliation by 5 th of every month (or subsequent day in case of holiday) for all settled results against coal supplies during the month preceding the previous month. Direction for ensuring the quality of coal, controlling grade slippage deviation and regarding 15-day timeframe for declaring the results of referee samples by nominated Referee laboratories have also been issued. Ministry of Coal has further directed for providing enabling conditions viz. crushers/ pulverizers, space, CCTV etc. on top priority. Rationalization of coal linkages: Since 2015-16 supply source rationalization of coal for TPPs has been the priority area for MOC/CIL with a view to optimize the transportation cost and materialization under the given constraints. In the year 2017, source rationalization of the following TPPs have done which would give an estimated annual savings of Rs. 774 crores in transportation cost. Plant Quantity Estimated Savings MAHAGENCO 5.04 MT Rs. 415 Crores HPGCL 1.33 MT Rs. 50 Crores APCPL, Jhajjar 1.13 MT Rs. 31 Crore GSECL 3.0 MT Rs 240 Crore UPRVUNL 1.2 MT Rs. 36 Crore WBPDCL 1.2 MT Rs. 2 Crore (as per WBPDCL) Automatic transfer of coal linkage/loa granted to the old plants while scrapping and replacing them with new plants: The issue of Policy on transfer of linkage in case of scrapping of old units by replacing them with new plants was deliberated in the SLC (LT) Meeting held on 27.06.2014.The Committee, based on the recommendation of MOP in respect of the new plants that will come up in a staggered way by the end of the 13 th Five year Plan, and evenmay also spill over to the 14th plan, recommended the following: 29
Annual Report 2017-18 (i) (ii) (iii) (iv) (v) LOA/linkage granted to the old plant shall be automatically transferred to the new plant of the nearest super critical capacity. If the capacity of the new super critical plant is higher than the old plant, additional coal may be accorded priority subject to the availability of coal on the best effort basis from CIL. At least 50% capacity of the new super critical plant has to be retired. Old plants may be clubbed together to achieve this minimum benchmark of 50% of proposed super critical capacity. This policy shall be applicable to pre-ncdp plants in public sector, which have already been granted long term linkages/loas Automatic transfer of LOA, as explained above, shall be permissible only when the new plant is set within the State in which the old plant is located and the old plant is actually scrapped. The old plant shall continue to operate till the COD of new plant. However, later on, point No. (v) was amended to the effect that for thermal power plants belonging to central sector, automatic transfer of linkages/loa from the scrapped to a new unit would be permitted outside the state in which the old unit is located. SLC (LT) in its meeting held on 29.03.2017 recommended: (a) (b) Transfer of coal linkage to Vindhyachal and Katwa TPP from Badarpur TPP. Transfer of existing coal linkage of 4 x 110 MW each Panipat Thermal Power Station (PTPS) to proposed 1 x 800 MW super critical unit at PTPS. Transparent auction of coal linkages (A) Auction of coal linkages for non-regulated sector On 15.02.2016, Ministry of Coal issued policy guidelines for auction of coal linkages to non-regulated sector. According to the policy guidelines, all allocations of linkages/loas for nonregulated sector viz. Cement, Steel/Sponge Iron, Aluminium, and Others [excluding Fertilizer (Urea) sector], including their Captive Power Plants (CPPs), shall henceforth be auction based. CIL has accordingly been conducting linkage auctions for Sponge Iron, Cement, CPP, Others (non-coking), Steel (coking) and Others (coking) sub-sectors under Non-Regulated Sector. The auction has been envisaged as a transparent system of linkage allocation based on competitive bidding by creating a level playing field. It ensures that all market participants have a fair chance to secure the coal linkage, irrespective of their size. Various consumer friendly measures such as 3 rd party sampling, exit option, no performance incentive, delivery from specified mine/siding, back-up mine in the event of Force Majeure, etc. have also been introduced. The tenure of the FSA is 5 years which can be further extended by another 5 years on mutual agreement. Three tranches of auction have already been concluded whereby 45.18 Mt of annual coal linkages have been booked at an average premium of 9.64% over non-power notified price. (B) Auction of coal linkages to power sector under SHAKTI B(ii) & B(iii) On 22.05.2017, Ministry of Coal came out with a new policy for allocation of future coal linkages in a transparent manner for power sector consumers. This policy is known as Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India (SHAKTI). The policy is expected to positively contribute in resolution of a number of stressed assets. The main benefits of the policy are: a) Coal availablities to Power Plants in transparent and objective manner b) Auction to be made the basis of linkage allocations to IPPs c) The stress on account of non-availability of linkages to Power Sector Projects would be eased, which is good for the Infrastructure and Banking Sector d) PPA holders to reduce tariff for linkage i.e. direct benefit of reduced tariff to Discom/consumers 30
POLICY INITIATIVES AND REFORM MEASURES As per Para B(ii) of the policy, CIL/SCCL is to grant coal linkages on notified price on auction basis for Independent Power Producers (IPPs) having already concluded domestic coal based Power Purchase Agreement (PPAs), with the bidding parameter being levellised discount on existing tariff that the IPP is willing to provide. This is expected to result in a win-win situation to IPPs having a long term supply security of coal from a source of their choice while consumers will benefit from a lower tariff. The linkage auction under SHAKTI B(ii) was conducted successfully from 11 th to 13 th of Sep 17 whereby 27.18 Mt of annual coal linkages have been booked. As per para B(iii) of the policy, linkages to IPPs/ Power Producers without PPAs shall be granted on auction basis where the auction methodology would be similar to that followed under linkage auction to non-regulated sector. The bidders would bid for premium above the notified price of the coal company. Coal drawal will be permitted only against valid long term and medium term PPA with Discoms/ State Designated Agencies (SDAs) which the successful bidder shall be required to procure and submit within two years of completion of auction process. The implementation of SHAKTI B(iii) is presently underway. Policy on Bridge Linkage Policy guidelines for grant of 'Bridge Linkage' to specified enduse plants of Central and State Public sector Undertakings (both in power as well as non-power sector which have been allotted coal mines/block have been circulated to all concerned. Bridge Linkage shall act as a short term linkage to bridge the gap between requirement of coal of a specified end use plant of Central and State PSUs and the start of coal production from the linked Schedule-III coal mines and coal blocks allotted under MMDR act. Till now, Bridge Linkage has been granted to 29 Thermal Power Plants in Central/ State Public sector Undertakings and 1 CPP unit. Washing of Coal CIL operates 15 washeries - 12 coking coal and 3 non coking with aggregate capacity of 36.8 Mty, of which 23.3 Mty is coking coal and 13.50 is non-coking. To comply with the guidelines issued by MoEF& CC for supply of coal with less than 34% ash to thermal power plants located beyond 500km, CIL has planned to set up 9 new non-coking coal washeries having a total capacity of 67.5MTPA. These washerieswill be set up by Dec 2020. Besides this, 9 new coking coal washeries, having a total capacity of 28.10 MTPA, are also at different stages of implementation for enhancing the washed coking coal quantity, in an effort to reduce the import of coking coal. In the second phase CIL has planned to modernize its existing coking coal washeries. CIL is also planning to install deshaling plants conforming to the commitment to the quality for its consumers. Master Plan to address Fire, Subsidence and Rehabilitation areas A comprehensive Master plan has been approved by Govt. in Aug 2009, and is under implementation, to address the issue of rehabilitation, fire and subsidence in old mined out the area of Jharia and Raniganj coalfield. The concerned state Govt. agencies namely JRDA for Jharia and ADDA for Raniganj are nodal agencies for rehabilitation of affected persons. The approved outlay for implementation of Master Plan is Rs 9773.84 Cr. (Jharia Rs.7112.11 Cr. and Raniganj - Rs.2661.73). In the case of Jharia, demographic survey has been completed for all 575 identified locations. The fire is spread out over an area of 2.18 sq.km. An Action Plan for dousing the 42 fire sites is to be implemented in three phases. For BCCL families, out of 15852 houses, 6668 houses have been constructed and 1200 more houses are near completion stage. 3196 BCCL families have already been shifted. Similarly JRDA has constructed about 4000 quarters for Non BCCL families and has shifted about 2100 families from affected areas. JRDA is further constructing 6000 quarters. In case of Raniganj coalfileds, fire at all locations have been extinguished. All ECL families have been shifted from unstable locations. Further, ADDA has started Construction of 160 flats and actions have been taken for construction of further 2300 flats by Housing Department of West Bengal. Satellite Surveillance for land reclamation Coal India Limited (CIL) Reclamation of mined out areas is important for sustainable 31
Annual Report 2017-18 development. Emphasis is being laid on proper reclamation (both technical and biological) and mine closure. Satellite surveillance for land reclamation is being given the requisite thrust by partnering with the National Remote Sensing Center (NRSC) at Hyderabad. The company-wise details of the area excavated and reclaimed in 2016-17 for the projects under monitoring based on satellite data as on 31.03.2017 are given in the table below: Status of Land Reclamation (Up to the year 2016-17) Sl. No. Company Land Excavated Biological Reclamation (Ha) Under Technical Total Area under Reclamation 1 WCL 12462.24 4410.64 5496.18 9906.82 2 SECL 11620.81 5552.29 3813.7 9365.99 3 NCL 11697.00 5496.00 3261.00 8757.00 4 MCL 5703.1 1553.61 2159.08 3712.69 5 CCL 8050.44 3112.53 2714.63 5827.16 6 BCCL 1830.58 324.03 1186.49 1510.52 7 ECL 2631.05 635.07 1393.07 2028.14 8 NEC 279.29 118.57 120.92 239.49 54274.51 (100%) 21202.74 (39.06%) 20145.07 (37.1%) 41347.81 (76.1%) The image interpretation and analysis for the year 2017-18 is under progress and the result of analysis can be known after final compilation which will be over by the end of March 2018. Singareni Collieries Company Limited (SCCL) Ministry of Environment, Forest and Climate Change has stipulated, in one of the conditions of Environmental Clearances issued to coal mining projects that, For monitoring land use pattern and for post mining land use, a time series of land use maps based on satellite imagery (on a scale of 1:5000) of the core and buffer zone, from the start of the project until end of mine life shall be prepared once in three years (for any one particular season which is consistent in the time series) and the report submitted to MoEF and its regional office at Bangalore. Further, MoC has advised all the coal mining companies that all the opencast mines shall be brought under satellite surveillance for periodical monitoring of land reclamation. Accordingly, SCCL is complying with the condition of monitoring land use pattern by satellite imagery maps and submitting the same to MoEF&CC and its regional offices once in three years. Most of the OC projects are being operated as relay projects and the back filling operations are still in active stage. The biological reclamation of the back filled areas will be taken up after attaining final profile as per the schedules of approved mining plans. Corporate Social Responsibility (CSR) Coal India Ltd. (CIL) and its subsidiary companies are undertaking different development activities under their Corporate Social Responsibility (CSR). The allocation of funds is done as per the CSR policy of CIL which is based on latest DPE s guidelines and provisions of the Companies Act 2013. For subsidiaries of CIL, fund for CSR is allocated based on 2% of the average net profit of the company for the three immediate preceding financial years or Rs. 2.00 per tonne of coal production of previous year whichever is higher. For CIL (standalone), fund for CSR is allocated based on 2% of the average net profit of CIL (standalone) for three immediate preceding financial years or Rs.2.00 per tonne of total 32
POLICY INITIATIVES AND REFORM MEASURES consolidated coal production of CIL as a whole of previous year whichever is higher.the details of the CSR statutory provision and the amount utilized by CIL and its subsidiaries during each of the last three years and the current year are as under: Company wise details for Corporate Social Responsibility of CIL and its subsidiaries Figures in Rs. crores 2014-15 2015-16 2016-17 2017-18 (Provisional) Company Statutory Provision Utilised Statutory Provision Utilised Statutory Provision Utilised Statutory Provision Utilised (up to 30.11.17) ECL 27.72 24.86 33.17 62.61 29.19 21.62 28.21 4.09 BCCL 30.80 14.33 33.00 50.67 26.85 11.45 10.63 2.57 CCL 47.86 48.87 53.00 212.79 55.90 30.29 52.72 2.11 WCL 7.97 20.15 8.66 65.27 8.68 10.81 0.00 4.77 SECL 129.97 40.43 127.68 270.85 120.24 42.50 93.30 71.21 MCL 113.97 61.30 112.97 184.64 113.36 166.60 122.85 136.25 NCL 80.28 61.77 76.60 153.97 74.23 77.33 74.00 19.34 CMPDIL 0.63 1.68 0.46 2.01 0.78 1.02 0.96 0.00 CIL & NEC 24.04 24.72 19.69 73.26 13.52 128.05 7.89 14.34 TOTAL 463.24 298.11 465.23 1076.07 442.75 489.67 390.56 254.68 The major CSR activities undertaken/planned during the current financial year under various themes are as under: 1. Healthcare ii. iii. Three districts of Jharkhand to be made ODF by CCL 5,946 IHHLs to be made in Korba district by SECL a. Cure and better management of Thalassemia by providing financial assistance of upto Rs. 10 lakhs per patient for conducting Bone Marrow Transplants of 200 patients by CIL (HQ) b. Providing healthcare facilities upto the last mile by conducting health camps in different areas, including a Mega Medical Camp during Sawan Mahotsava at Deoghar, Jharkhand by CCL. 2. Sanitation a. Support to the ODF (Open Defecation Free) campaign by way of construction of Individual Household Toilets (IHHLs) i. 5,658 IHHLs in Purulia District, West Bengal by CIL (HQ) b. Observation of Swachhta Pakhwada to spread the message of cleanliness during 16 th to 31 st August, 2017. The following activities were undertaken: i. Tree Plantation More than 4.92 lakh trees (mostly fruit bearing) were planted ii. Cleaning of schools and hospitals A total of 880 establishments were cleaned iii. Cleanliness of village and roads A total of 9,943 dustbins were installed iv. 3. Education Swachhta campaign and IEC activities were conducted a. Free coaching and boarding/lodging arrangements 33
Annual Report 2017-18 to meritorious students for appearing in Engineering Entrance Examinations under the Lal Ladli scheme of CCL and BCCL b. Construction of school building at Mugma by ECL c. Construction of Medical college (Mahanadi Institute of Medical Sciences and Research) at Angul by MCL 4. Skill Development a. Establishment of skill development facility along with hostel building and computer center for visually impaired girls at Ranchi by CMPDIL. b. Capacity building training to tribal youth in 4 districts of Madhya Pradesh and Chattisgarh by SECL 5. Environment Sustainability and Conservation of Natural Resources a. Establishment of Central Ambient Air Quality Monitoring Stations (CAAQMS) through Central Pollution Control Board (CPCB) in 16 cities by CIL (HQ) b. Roadside plantation under the Green Highways programme of NHAI on NH-78 (100 km. stretch from Shahdol to Madhya Pradesh Chattisgarh border) by SECL c. Support to Harihar Chattisgarh Programme of Chattisgarh State Forest Department by SECL 6. Drinking water a. Installation of hand pumps for providing access to regular drinking water by CIL and its subsidiaries at different places b. Installation of RO plants / arsenic mitigation projects to providing safe drinking water and mitigation of water borne diseases by CIL and its subsidiaries at different places 7. Rural Development Projects a. Different infrastructure development works (such as construction of irrigation channel, community halls and installation of solar high mast lights etc.) in adjoining rural areas by NCL b. Different infrastructure development works (such as deepening of ponds, construction of concrete roads and community hall and digitization of schools etc.) in adjoining rural areas by WCL c. Holistic development works (Agriculture and Greening, Renewable Energy, Capacity Building and Setting up Knowledge cum Recreation Centers) in 40 villages of Purulia, West Bengal by CIL (HQ) 8. Promotion of sports a. Maintenance of running of Sports Academy at Ranchi by CCL for providing sports coaching to children along with educational input b. Training camp for rural youths in sports (Volleyball, Kabbadi and Athletics) by NCL 34
Chapter 4 FINANCIAL OUTLAYS AND OUTCOMES ANNUAL REPORT 2017-18
ANNUAL REPORT 2016-17
Ministry of Coal Financial Outlays and Outcomes The budget provisions and expenditure under Plan during the last two years are detailed below: (In Rs. crore) Year Budget Estimate Revised Estimate Expenditure % of expenditure with regard to RE 2016-17 300.00 500.00 484.05 96.81 2017-18 685.00 685.00 585.00 (upto Dec-2017) 85.40 During the financial year 2016-17, out of the budgeted amount of Rs.300.00 crore (enhanced to Rs.500.00 crore in RE), Rs.484.05 crore was utilized. The un-utilized amount of Rs.15.95 crore pertained mainly towards the mandatory provisions for the North-East region (Rs.14 crore). The allocation for Central Sector Schemes the current financial year [2017-18] is Rs. 685.00 crore. Of this an amount of Rs.585.00 crore has been utilized upto December, 2017 amounting to 85.40% of the total Plan allocation. The allocation for Central Sector Schemes during the FY 2018-19 has been kept at Rs.710 crore. The other Scheme/Programme Component of Rs. 60.91 crores, for 2018-19 mainly comprises of funds required for Secretariat (Economic Services), Coal Controller s Organisation, payment of Government contributions statutorily required under Coal Mines Pension Scheme, 1998 and the newly constituted Nominated Authority for auction of coal blocks. The Annual Plan [2018-19] component of Coal PSUs is Rs.15798.69 crore, to be provisioned from Internal and Extra Budgetary Resources. A detailed profile of PSU wise budget allocation and expenditure is given on the next page: (Rs. In crore) Name of PSU 2016-17 2017-18 2018-19 BE RE Exp. BE RE Exp. (upto Dec. 17) BE CIL 7765.00 7765.00 7700.06 8500.00 8500.00 3557.50 9500.00 NLCIL 6278.92 9437.96 4575.68 8948.12 4578.00 1857.21 4298.69 SCCL 2300.00 2300.00 2013.55 1600.00 1400.00 934.30 2000.00 Total 16343.92 19502.96 14289.29 19048.12 14478.00 6349.01 15798.69 37
Annual Report 2017-18 The scheme/programme wise allocations for the current financial year [2018-19] are given below: (Rs. in crore) Sl No Name of Scheme/ Programme Revenue 1. Secretariat Economic Services 23.24 2. Coal Mines Pension Scheme-1998 (CMPS-98) including part reimbursement of Administrative charges 23.00 of CMPFO 3. Coal Controller s Organisation 10.78 4. Nominated Authority 3.89 5. Research & Development programmes 10.00 6. Conservation Safety and Infrastructure Conservation and safety in coal mines 59.50 Development in Coal Mines Development of Transport Infrastructure in coal field areas. 140.00 Environmental Measures and Subsidence Control 0.50 7. Exploration and Detailed Drilling Regional Exploration of Coal & Lignite 150.00 Detailed Exploration in Non-CIL Blocks 350.00 10. Total 770.91 Audit Para Present status of the Audit Para No. 3.2 and 3.5 of Report No. 9 of 2017 and Para 6.1 of Report No. 12 of 2017 are given in Annexure-I. 38
Chapter 5 PUBLIC SECTOR UNDERTAKINGS ANNUAL REPORT 2017-18
Ministry of Coal Public Sector Undertakings Coal India Limited Coal India Limited (CIL) an organised state owned coal mining corporate came into being in November 1975 with the Government taking over private coal mines. With a modest production of 79 MT at the year of its inception CIL today is the single largest coal producer in the world. CIL works within the framework of an overall vision to emerge as a global player in the primary energy sector by attaining environmentally socially sustainable growth through best practices from mine to market. Coal India Limited, the holding company with headquarters at Kolkata, is headed by a Chairman. He is assisted by four Functional Directors, namely, Director (Technical), Director (Personnel & Industrial Relations), Director (Finance) and Director (Marketing). Each subsidiary company of CIL has its Board of Directors headed by a Chairman-cum-Managing Director. In addition, there are four functional Directors in each of the seven production companies and Central Mine Planning & Design Institute Limited (CMPDIL). In addition, part-time or nominee Directors on the Board of CIL and its subsidiary companies are appointed in accordance with the Articles of Association of the Company and Government guidelines prescribed in this regard from time to time. CIL s Strategic Relevance Produce around 84% of India s overall Coal production. In India where approximately 55% of primary commercial energy is coal dependent, CIL alone meets to the tune of 40% of primary commercial energy requirement. Commands nearly 74% of the Indian coal market. Feeds 98 out of 101 coal based thermal power plants in India. Accounts for 76% of total thermal power generating capacity of the utility sector. Supplies coal at prices discounted to international prices. Insulates Indian coal consumers against price volatility. Make the end user industry globally competitive. Milestones in 2016-17 Sustaining the growth arc in production and off-take, CIL had exceeded half-a-billion Tonne mark in both the physical aspects for the second consecutive year. Coal production has taken a quantum jump of over 100Mt. in a five-year span, from the level of 452.21 Mt. recorded in 2012-13 to the current level production of 554.14 Mt. in 2016-17. Coal dispatch to power utilities (including special forward e-auction) during the year was 425.397 Mt. registering a growth of 3% compared to last year dispatch of 413.11 Mt. CIL s Gross sales turnover have exceeded Rs. 100000 Crore for the second consecutive year. CIL has been accredited with IS/ISO 9001:2015 (Quality Management System) and IS/ISO 50001:2011 (Energy Management System) certification during 2016-17. CIL is one of the highest contributors to the Government ex-chequer both-central and State Governments. CIL paid corporate taxes of Rs. 8942.70 crore to Government of India in 2016-17 There was a decline in coal import resulting in substantial Forex saving. Transformational HR Initiatives in CIL Manpower The total manpower of the Coal India Ltd. including its subsidiaries as on 31.12.2017 was 3,02,785. Company-wise status of manpower is as below:- 41
Annual Report 2017-18 Company 2016-17 (Upto 31.12.2016) 2017-18 (Upto 31.12.2017) ECL 64801 62655 BCCL 51860 49581 CCL 42725 41188 WCL 47791 46245 SECL 62255 59688 MCL 22258 22392 NCL 15578 15107 NEC 1743 1577 CMPDIL 3562 3434 DCC 391 378 CIL(HQ) 865 918 TOTAL 313829 302785 Employees participation in management In general, decisions concerning employees are taken through bilateral forums represented by employees and management. Bilateral forums such as Housing Committee, Welfare Committee, Canteen Committee etc. are in operation at all project. Similarly, Bipartite meetings, under the Industrial Relations system, are held periodically at unit level, area level and corporate level to resolve issues pertaining to employees service conditions and welfare. Every subsidiary is having an Apex Bipartite Committee (Joint Consultative Committee) headed by the Chairman-cum- Managing Director of the Company. The Joint Consultative Committee deliberates on various strategic issues and issues related to quality of life of employees in general. All these bipartite bodies are represented by employee s representatives. Contract workers The Company is a source of employment to the nearby villagers. There are about 1,12,931 contractors workers employed in mines through registered contractors for various outsourced works. The company ensures compliance of all legal and company norms, pertaining to the pay and welfare of the contractors workers, by the contractor. Minimum wages for the contract workers in Coal India Ltd. who have been engaged in mining activities has been fixed, which is higher than the minimum wages under the Payment of Minimum Wages Act. In addition to the above, the Company provides medical treatment at the Company s facility, free of cost, to the contractors workers. All the contractors workers are being subjected to medical examination, safety training and are being provided with personal protective equipment. The Company has successfully covered all the contractors workers under the Social Security Schemes (CMPF & CMPS). The payment of wages to the contractors workers is ensured through bank to avoid any exploitation on this count. For monitoring compliance of payment of wages and other benefits to the Contractors Workers under the Contract Labour (R&A) Act, 1971, Coal India Ltd. has created and launched Contract Labour Payment Management portal. Comprehensive database, including bank account number and Aadhar number, of all the workers engaged by different contractors in CIL & its Subsidiaries is uploaded on this portal. This portal provides access to all contractors workers so that they may view their personal details including rate of wages and payment status as well as, if need be, register their grievance. Further, Ministry of Labour& Employment vide its Gazette Notification dated 7th December, 2015, exempted Subsidiaries of CIL to engage the contractor workers on the works specified (prohibited) at serial nos. 1 to 3 under S.O.2063 dated 21st June, 1988, Published in the Gazette of India, Part-II Section-3, subsection (ii) published by Ministry of Labour& Employment for five years from the date of publication of the notification. Child Labour/Forced Labour/Bonded Labour Engagement of child labour, forced labour or bonded labour, in any form, is prohibited in the Company, either by itself or by any stakeholder in the value chain of the Company s operation. This is strictly monitored through mandatory initial medical examination of all contract workers engaged in mines. Freedom of Association Democratic values are ingrained in the management of human resource in the company. Employees are free to be part of any registered trade union and other govt./ non-govt. organizations. Branches of all central trade unions and local unions are operating in coalfields. Their representation is allowed in the bipartite bodies in the company under the norms of the Industrial Relations System 42
PUBLIC SECTOR UNDERTAKINGS Non-Discrimination The Company follows principles of non-discrimination in employee management. There is no discrimination of the employees in the name of religion, caste, region, creed, gender, language etc. All employees are given equal opportunity in service matters. Organisational Culture Building initiatives All the new entrants joining the Organisation have been welcomed under Project Aagaman. Employees are inducted in the Company under the Induction Program at Indian Institute of Coal Management and Vocational Training Centres. The Chairman, CIL extends a warm welcome to the fresh recruits through Welcome letter. All the superannuating employees are being given farewell and their terminal dues are settled under the Project Samman. The Chairman, CIL and the CMDs of the Subsidiaries express their gratitude to the contributions of the employees and their family members to the success of the Organisation. People Development initiatives A Talent Management Policy has been approved by CIL Board to identify and groom a talent pool of Executives, from which, successors for each and every critical position of the Company would be selected. A talent Management Committee comprising of Outside Experts would be involved in selecting successor from the identified talent pool. A Comprehensive Learning & Development Policy has been formulated and is under process for approval. The draft mandates compulsory training envisages planned development of Employees in a training cycle of 4 years. The training facilities are being upgraded with proper training infrastructure and training aids. Through CIL Mentorship programme, all the freshers are being mentored by a group of well-trained mentors, to cope up with the challenges in the working environment. Functional skill trainings, Skill development trainings, Management Development Programmes, Leadership Development Programmes have been organised for different levels of employees. Similarly, special programmes have been organised on Contract Management, Project Management, Environment, Forest & Sustainability, Enterprises Risk Management, Finance, Stress Management etc. Social Security All employees are covered under the social security schemes of the Company as below: i. Gratuity Employees on their retirement receive Gratuity payment upto Rs. 10 lakhs. The ceiling is due to be raised to Rs. 20 lakhs under Pay Revision 2017. ii. CMPF All employees are covered under the Coal Mines Provident Scheme which is a contributory fund with equal shares both by employee and the Company. iii. Coal Mines Pension Scheme (CMPS) All employees are covered under the Coal Mines Pension Scheme by which, on superannuation, they receive 25% of their Basic Pay as monthly pension. In the event of death of the employee, the spouse and children are eligible to receive pension. iv. Post-Retirement Medical Support CIL has added a post-retirement medical support to its 3 lakh employees to provide critical health support to the employees and the spouse, post retirement. Subject to conditions, the Scheme provides reimbursement of medical expenses for indoor and outdoor treatment for a maximum amount upto Rs. 5 lakhs (For Non executives) and Rs. 25 lakhs for Executives in ordinary cases, and enhanced support in case of critical diseases such as Heart diseases, Cancer, Renal diseases, paralysis, etc. CIL has now planned to introduce Healthcare Insurance Scheme to cover all the employees and their dependent family members, ex employees and their spouse to provide health coverage for hospitalization, outpatient treatments and other diagnostic tests. The proposed system will ensure cashless treatment through Smart Cards with biometric data for authentication purposes and linking with Aadhar details. v. Superannuation Pension Scheme CIL has formulated a Superannuation Pension Scheme to provide superannuation benefit in the form of annuity through an Annuity 43
Annual Report 2017-18 Service Provider, post retirement, to all Board level and below Board level Executives. It is to be implemented with retrospective effect from 01.01.2007. vi. Employee Compensation In the event of death/ disablement while on duty, the employees are eligible to receive monitory compensation under the Employee Compensation Act. Apart from that, the Company provides additional compensation of Rs. 5 lakh and Rs. 90,000 as Ex-gratia. vii. Life Cover Scheme In the event of death of an employee while in service, the dependents of the employee are entitled to receive an amount of Rs. 1,25,000 under the life cover scheme. viii. Employment to dependent In the event of death/ disablement of an employee, while in service, one of his dependent entitled for permanent employment in the Company. Grievance Management The Company has a robust online Stakeholder grievances system to deal with the grievance of Stakeholders i.e. employees, Consumers and others. Under the policy all grievances are redressed within 10 days and Stakeholders are informed accordingly. As on 31 st Dec 17, there is no cases pending in SEBI SCORES and PG Portal of CIL. Resettlement & Rehabilitation Policy of CIL Coal India s R & R Policy was first formulated in 1994 and has been in operation with modifications from time to time. The R & R Policy, in vogue since 2000, was further modified in 2004, 2008 and 2012. The revised R & R Policy of CIL-2012 provides multiple options to the land loosers. It also bestows more flexibility to the Board of Subsidiary Companies to meet unique R & R problems to acquire land faster. Some of the operational features of the policy are as follows:- Land compensation to land oustees is paid as per the provisions of the relevant Act or State Government notification. Employment is provided to land oustees against every two acre of land. All the land losers who are not eligible for employment, are entitled to receive monetary compensation in lieu of employment at the rate of Rs. 5 lakhs for each acre of land on pro-rata basis. A one-time lump-sum payment of Rs. 3 lakhs is paid in lieu of alternate house site. Monetary compensation is also provided for construction of work shed etc. Each affected family gets a subsistence allowance at the rate of 25 days Minimum Agriculture Wage per month for one year. Coal companies assist project affected people to establish non-farm based self-employment. Contractors are encouraged to give jobs to the eligible PAPs on preferential basis. As far as possible, coal companies shift tribal community as a unit and provide facilities to meet the specific needs of the tribal community thus allowing them to maintain their unique identity. Affected Tribal families are given one time financial assistance of 500 days of MAW for loss of customary right or usages of forest produce. Affected Tribal families settled out of the district are given 25% higher rehabilitation and resettlement benefit. At rehabilitation site, a school, road with street light, pucca-drain, pond, tube well for drinking water supply, community center, place of worship, dispensary, grazing land for cattle and play ground are provided. The community facilities are available to all the residents of the resettlement colonies, including PAPs and the host population. The approach for operation of community facilities is flexible and all efforts are made to involve the State and local self- Government/Panchayat. The planning of community facilities and their construction is undertaken in consultation with the affected community. In the background of the Right to Fair Compensation & Transparency in Land Acquisition, Rehabilitation & Resettlement (RFCTLARR) Act of 2013, and other relevant 44
PUBLIC SECTOR UNDERTAKINGS issues, the R & R Policy of Coal India Ltd. is being revised to incorporate the provisions of RFCTLARR Act-2013. The draft of revised R & R Policy of CIL has been prepared by a committee under the chairmanship of CMD-WCL and the revised policy is under process of approval. Care for Environment Coal companies have been constantly addressing the impact of mining activities across environmental and social issues. Ecofriendly mining systems have been implemented in all mining areas. To make environmental mitigation measures more transparent, coal companies have introduce state-of-the-art Satellite Surveillance to monitor land reclamation and restoration for all opencast projects. Coal India has made afforestation over an area of around 38,374 hectares through a well structured Environment management plans and sustainable development activities. As a part of Clean & Green programme, massive plantation is also taken up by CIL wherever land is available. In 2017-18 alone CIL and its subsidiaries have planted 19,36,264 saplings in mining areas. Till 2017-18, CIL has planted 95.9 million trees. NLC India Limited (NLCIL) NLC India Limited (NLCIL) was registered as a company on 14 th November 1956. The Mining operations in Mine-I were formally inaugurated on 20 th May 1957 by the then Prime Minister. NLC India Limited has been conferred with the NAVRATNA status since April 2011. NLC India Limited s present mining capacity is 30.6 MTPA and power generating capacity, as on December 2017, is 4431 MW. All the Mines and the Power Stations of NLC India Limited have received ISO Certification for Quality Management System (QMS), Environmental Management System (EMS), and Occupational Health & Safety Management System (OSHAS). Authorised Capital The authorised capital of NLC India Limited is Rs. 2000 Crore and paid up equity is Rs. 1528.57 Crore. The investment by Govt. of India as on 31.03.2017 is as under: Investment ( Rs. Crore) Equity - GOI Portion: 1528.57 Loan from GOI - (including accrued interest) Production Performance (NLCIL) Nil Overburden removal, lignite production, gross power generation and export of power during the year 2017-18 up to the end of December 2017 and provisional for the period January 2018 to March 2018 are indicated below: Product Unit BE 2017-18 2017-18 (up to Dec 2017) Target Actual Jan 2018 to March 2018 (Prov) Overburden MM 3 157.40 116.29 134.27 41.11 Lignite MT 26.80 17.35 16.43 9.45 Power Gross MU 22000.00 16020.51 15277.55 5979.49 Power Export MU 18720.00 13625.51 12814.81 5094.49 45
Annual Report 2017-18 If power surrender of 1738.25 MU is added in that case, the gross power generation for the period April 2017 to December 2017 would be 17015.80 MU with an achievement of 106.21% (against the present level of 95.35%). Productivity The productivity performance in 2016-17 and 2017-18 (up to December 2017) is furnished in the table below: OMS Unit 2016-17 Actual 2017-18 (up to Dec 2017) Target Actual Mines Tonne 13.67 10.42 11.42 Thermal KwHr 24341 22228 24209 Plant Load Factor The PLF achieved by TPS-I, TPS-I Expansion, TPS-II and Barsingsar TPS during 2016-17 and 2017-18 (up to December 2017) are as under: PLF 2016-17 Actual 2017-18 (up to Dec 2017) Target Actual T.P.S-I 70.33 65.61 64.27 T.P.S-IE 90.71 83.84 85.82 T.P.S-II 85.83 84.12 77.56 T.P.S-II E 31.35 50.03 45.15 Barsingsar TPS 66.82 69.52 71.83 46
PUBLIC SECTOR UNDERTAKINGS Singareni Collieries Company Limited The Singareni Collieries Company Limited (SCCL) is a Joint venture of Govt. of Telangana and the Govt. of India with equity participation in the ratio of 51:49 respectively. SCCL is contributing around 9.5 % of the total all India production. Coal Production The production of coal by the CIL during Apr.-Dec.2017 was 383.93 Mte in 2017-18 as against the annual target of 600 Mte. The SCCL produced 41.99 MTe of coal during 2017-18 against the annual target of 62 Mte. Productivity (OMS) Productivity target for the year 2017-18 was 5.29 Tonnes and 4.28 Tonnes productivity is achieved upto December,2017. Target 2017-18 Singareni Collieries Co. Ltd. Target 2017-18 (April-December 17) Actual 2017-18 (April-December 17) 5.29 5.13 4.28 Development Activities In North Eastern Region In the North Eastern Region, Coal India Limited has its mining activities mainly in Makum Coalfields of Assam. At present 4(Nos) of mines are in operation. These are Tirap, Tikak, Ledo(OCP) and Tipong. Out of these, Tirap, Tikak and Ledo (OCP) are open cast Mines/Projects while Tipong is an Under Ground Mine. In North Eastern Coalfields there are 5(five) major outsourcing patches in the open cast Mines. These are: Tirap(East), Tirap(West), Tikak(East), Tikak(OCM) and Ledo(OCP). NEC s entire coal production of open cast mine is outsourced. Ledo(OCP) was started in the F.Y. 2008-09. The coal production of Last 4(four) years has been shown in the following table I. Year 2013-14 Coal Production of NEC Table I 2014-15 2015-16 (Fig. in Lakh Tonnes) 2016-17 2017-18 Provisional 6.63 7.79 4.86 6.002 7.00 In the year 2017-18, it is expected to achieve 7.00 lakh tones. During the year 2017-18, out of 5(five) patches, only 4(four) patches hav produced coal during the month of April 2017 to Dec 2017. During the month of December 17 only 4(four) patches had produced coal at North Eastern Coalfields. This was due to nonfinalization of outsourcing contract. As on date tender for only 1(one) patch of Opencast Mine is yet to be finalized. Tender has already opened and tender Committee recommendation is being scrutinized. 47
Annual Report 2017-18 PERFORMANCE OF NEC (Period from 01.04.2017 to 31.12.2017) Table II (Actual Data) 1 Coal Production Unit Quantity I. Under Ground Lakh Tonnes 0.021 II. Open Cast 3.52 TOTAL 3.54 2 O.M.S. I. Under Ground Tonnes 0.02 II. Open Cast 3.10 III. Overall 1.70 3 Coal Despatch/Off take 4 I. Despatch Lakh Tonnes 4.96 II. Domestic Consumption -- -- III. Off take 4.96 Pit-head coal stock as on 31.12.16 0.41 5 No. of Mines Working 04 Performance of NEC (Period from 01.01.2018 to 31.03.2018)-Provisional Table III (Provisional Data) 1 Coal Production Unit Quantity I) Under Ground Lakh Tonnes 0.0085 II) Open Cast 3.45 TOTAL 3.46 2 O.M.S. I) Under Ground Tonnes 0.03 II) Open Cast 9.79 III) Overall 5.51 3 Coal Despatch/Off take 4. Despatch Lakh Tonnes 2.04 Domestic Consumption -- Off take 2.04 Pit-head coal stock as on 31.03.2018 1.82 5. No. of Mines Working 04 Performance of NEC (Period from 01.04.2017 to 31.03.2018)-Provisional Table IV (Anticipated Data) 1. Coal Production Unit Quantity I) Under Ground Lakh Tonnes 0.0295 II) Open Cast 6.97 TOTAL 7.00 2. O.M.S. I) Under Ground Tonnes 0.25 II) Open Cast 4.58 III) Overall 2.58 3. Coal Despatch/Off take 4. I) Despatch Lakh Tonnes 7.00 II) Domestic Consumption - III) Off take 7.00 Pit-head coal stock as on 31.03.2018 1.82 5. No. of Mines Working 04 Performance of NEC during Last five years Though NEC was incurring heavy losses barring a few years in the past, it has started earning overall profitability. However, the under ground Collieries are still in Losses since 2005-06. The profitability of the last five years has been shown in the table V. 48
PUBLIC SECTOR UNDERTAKINGS Table V (Fig. in Lakh Rupees) MINES 2012-13 2013-14 2014-15 2015-16 2016-17 TIPONG(UG) (-)6011.03 (-)5279.12 (-)6698.94 (-)6473.28 (-)6841.20 LEDO(UG) (-)1688.24 (-)1464.79 (-)1446.81 -- BARAGOLAI(UG) (-)3493.09 (-)2934.05 (-)3033.63 (-)2819.03 JEYPORE(UG) (-)110.73 (-)122.02 (-)100.68 (-)140.32 (-)112.26 TIRAP(OC) (+)6423.05 (+)10718.88 (+)10282.01 (-)131.73 (-)1556.79 TIKAK(OC) (+)5947.83 (+)1.78 (+)5075.65 (+)1443.27 (-)3770.64 LEDO OCP (+)4831.36 (+)2306.24 (-)1160.10 (+)2149.18 (-)65.49 Service unit (+)674.09 (+)31.20 -- -- Total NEC (+)6573.23 (+)3258.12 (+)2917.51 (+)5971.91 (-)12356.38 NEC S PRODUCTION PROGRAMME In NEC, at present there are altogether four(4) Nos existing working mines. Out of 4 mines, 3 Nos are opencast mines and 1 No is underground mine. During the Financial Year 2017-18, it is anticipated to produce coal 7.0 Lakh tonnes of coal. 49
50 Annual Report 2017-18
Chapter 6 COAL AND LIGNITE PRODUCTION ANNUAL REPORT 2017-18
52 Annual Report 2017-18
Ministry of Coal Coal and Lignite Production Coal Demand There has been a continuous increase in overall consumption of coal over the years. Consumption / actual supply of coal (including import) increased from 713.39 million tonnes in 2012-13 to 841.56 million tonnes in 2016-17. As per data provided by CCO, Demand for coal for 2017-18 was estimated at 908.40 million tonnes against which, actual supply of coal in 2017-18 (Apr-Dec. 2017) was 621.26 Mte. The sector wise breakup of actual supply of coal vis-à-vis the demand as estimated at the beginning of 2017-18 is given in the table:- Supply of Coal in 2017-18 (Fig. in Million Tonne) Sector 2012-13 Actual 2013-14 Actual 2014-15 Actual 2015-16 Actual 2016-17 Actual (Prov.) 2017-18 Estimated Demand 2017-18 Actual April-Dec. (P) I. Coking Coal 1 Steel / Coke Oven & Cokeries (Indigenous) 15.50 15.49 12.02 12.27 12.50-10.66 2 Steel (Import) 35.56 36.87 43.72 44.56 41.64-26.95 II. Sub Total 51.06 52.36 55.74 56.83 54.14 63.17 37.61 Non Coking Coal 3 Power (Utilities) 387.77 394.53 435.44 483.12 496.57 622.96 384.88 4 Power (Captive) 59.00 54.42 62.26 34.65 30.68 90.34 23.865 5 Cement 22.38 21.02 11.36 8.99 6.43 22.32 5.017 6 Sponge Iron/ CDI 20.90 18.49 17.77 7.76 5.68 24.61 4.27 7 BRK & Others.including Fertilizer 172.27 198.52 239.57 245.37 248.05 85.00 165.62 Sub Total 662.33 686.98 766.39 779.89 787.41 845.23 583.65 Total Raw Coal 713.39 739.34 822.13 836.73 841.56 908.40 621.26 Coal Supply P= Provisional, Source :Coal Controller Organisation The demand for coal in 2017-18 was estimated to be 908.40 Million Tonnes, whereas the domestic availability was estimated at 730.10 Million Tonnes. The gap of 178.30 Mte was projected to be met through imports. During the year 2017-18, the actual domestic supply of coal was 505.14 Mte during Apr-Dec 2017. Of this the supply of coal from CIL, SCCL and Others including captive blocks was 421.36 Mte, 46.69 Mteand 37.08Mte respectively. 53
Annual Report 2017-18 The total import of Coal as per figures available (upto Oct. 2017), was placed at 116.12 Mte. Accordingly, the source wise break up of actual supply is presented for Apr-Dec 2017-18 in the following table along with figures for 2016-17. Coal Supply and Demand (In million tonnes) Source 2016-17 Target/Estimate 2016-17 Actual(prov.) 2017-18 Target/Estimate 2017-18 Actual Apr-Dec 17 (P) CIL 598.61 547.37 600.00 421.36 SCCL 58.00 59.39 62.00 46.69 Others 68.10 43.85 68.10 37.08 Total domestic supply 724.71 650.61 730.10 505.14 Demand projected / Actual 884.87 841.56 908.40 - supply (Domestic+ Import) Import Estimated / Actual 160.16 190.95 178.30 116.12 # Note: Demand is assessed by the Planning Commission at the beginning of each Annual Plan whereas the supply figures are based on actual as realized by the end of the reporting period. # Import (116.12MT) April-October, 2017. Coal Production The production of coal by the CIL during Apr.-Dec.2017 was 383.93 Mte in 2017-18 as against the annual target of 600 Mte. The SCCL produced 41.99 MTe of coal during 2017-18 against the annual target of 62 Mte. The company wise raw coal production target for 2017-18 and achievement is given in the table. Company wise production of Coal ( in million tonnes) Company 2014-15 (Actual) 2015-16 (Actual) 2016-17 (Actual)* 2017-18 Target 2017-18 Actual (Apr-Dec 17)* 2017-18 Estimated prov. Jan18 March18 ECL 40.00 40.21 40.52 47.00 28.11 18.89 BCCL 34.51 35.86 37.04 40.50 21.96 18.54 CCL 55.65 61.32 67.05 70.50 37.30 33.20 NCL 72.48 80.22 84.10 89.00 67.45 21.55 WCL 41.15 44.82 45.63 48.50 27.75 20.75 SECL 128.28 137.93 145.33# 153.80 101.71 52.09 MCL 121.38 137.90 139.21 150.00 99.31 50.69 NEC 0.78 0.49 0.60 0.70 0.35 0.35 CIL 494.23 538.75 559.46 600.00 383.94 216.06 SCCL 52.54 60.38 59.53 62.00 41.99 20.01 Others 62.41 40.09 43.79 68.10 35.50 32.60 Total 609.18 639.23 662.79 730.10 461.42 268.68 *Provisional # Including Gare Palma IV/1,2&3 Block s 54
COAL AND LIGNITE PRODUCTION Import The total import of Coal during the period April - November. 2017 was estimated at 137.25 Mte. Lignite Production and Power Generation The Neyveli Lignite Corporation (NLC) had a target of 26.80 Mte of Lignite and 22000 MU of Power Generation for 2017-18 against which actual production of lignite was 16.43 Mte and 15277.55 MU of power generation during Apr-Dec 2017-18 and the provisional production of Lignite and Power Generation for the period January 2018 to March 2018 is 9.45 Mte. and 5979.49 MU respectively. The details of which are given in the table. Year Lignite(MTe) Power Generation (MU) 2014-15 (Actual) 26.54 19729.13 2015-16 (Actual) 25.45 19182.21 2016-17 (Actual)* 27.62 21033.10 2017-18 (BE) 26.80 22000.00 2017-18 (RE) 24.84 20500.00 2017-18 (Actual)* (Apr- Dec.17) 16.43 15277.55 2017-18 Jan 18 March 18 (Estimated) 9.45 5979.49 2018-19 (BE) 24.69 20500.00 *Provisional. Output PerManshift (OMS) ( in million tonnes) Year Coal India Ltd. Singareni Collieries Co. Ltd. UG OC Overall UG OC Overall 2012-13 (Actual) 0.77 11.48 5.32 1.13 11.87 3.94 2013-14 (Actual) 0.76 12.18 5.62 1.12 11.10 3.86 2014-15 (Actual) 0.79 13.13 6.20 1.10 12.18 4.21 2015-16 (Actual) 0.80 14.35 6.95 1.25 13.82 4.74 2016-17 (Actual) 0.80 15.26 7.53 1.17 13.85 4.74 2017-18 (BE) 0.95 12.88 7.57 1.52 14.00 5.29 2017-18 (RE) 0.95 12.88 7.57 1.52 14.00 5.29 2017-18 (Actual) (April-Dec.17) 0.81 14.06 7.17 1.05 11.87 4.28 55
Annual Report 2017-18 Capital Outlay The details of Capital outlay for the year 2015-16 (actual) and 2016-17 (actual) and 2017-18 BE and Anticipated are as under: Name of PSU 2015-16 Actual 2016-17 Actual 2017-18 BE (Rs in Crore) 2017-18 Anticipated CIL 6123.03 7700.06 8500.00 8500.00 Plan Expenditure Year Capital Expenditure of CIL 2012-13 (BE) 4275.00 2012-13 (RE) 3900.00 2012-13 (Actual) 2915.23 2013-14 (BE) 5000.00 2013-14 (RE) 5000.00 2013-14 (Actual) 4029.60 2014-15 (BE) 5225.00 2014-15 (RE) 5225.00 2014-15 (Actual) 5173.49 2015-16 (BE) 5990.50 2015-16 (RE) 6600.00 2015-16 (Actual) 6123.03 2016-17 (BE) 7765.00 2016-17 (RE) 7765.00 2016-17 (Actual) 7700.06 2017-18 (BE) 8500.00 2017-18 (RE) 8500.00 2017-18 (Actual) (April-Dec. 2017) 3557.50 Jan.- March 2018 (anticipated) 4942.50 56
Chapter 7 COAL DISTRIBUTION AND MARKETING ANNUAL REPORT 2017-18
Ministry of Coal Coal Distribution and Marketing Coal Distribution and Marketing Allocation of coal to power, cement and steel plants. 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 the SLC (LT) or on the basis of their existing MOU commitments. During the time Apr'17-Dec'17, CIL supplied the following quantities of coal to various sectors: Coal India Limited (Prov.) (Fig in MT) Sector AAP Targeted off take Actual Off take Supply % against Target Steel* 5.96 4.11 69% Power ( Utilities) ** 325.35 331.44 102% Captive Power *** 36.32 29.02 80% Cement 5.11 2.95 58% Sponge Iron 7.12 5.52 78% Others 52.07 48.17 93% TOTAL DESPATCH 431.93 421.22 98% Colliery Consumption 0.17 0.19 109% Total 432.11 421.41 98% * : includes coking coal feed to washeries, direct feed and blendable to steel plants. ** : includes non-coking coal feed to washery and Bina Deshaling Plant for beneficiation and special forward e-auction to power ***: Captive Power includes dispatches to fertilizer sector 59
Annual Report 2017-18 Sector wise Coal Off take from SCCL Sector-wise coal off-take from SCCL during the year 2017-18 (from April 17 to December 17) and anticipated for the remaining period (Jan. 2018 to March 2018) are as below: Sector wise coal off take: (In Million Tonnes) Sector April December 2017 April December 2016 Growth (%) January March 18 (anticipated) 2017-18 (Anticipated) Power (utility) 38.89 36.46 6.68 14.99 53.88 Power (CPP) 2.03 1.25 61.95 0.75 2.78 Steel (SI) 0.160 0.06 183.93 0.15 0.31 Cement 1.87 1.48 26.15 0.70 2.57 Others 3.91 3.45 13.44 1.54 5.46 Total : SCCL 46.86 42.70 9.75 18.14 65.00 Power Houses Off-take of coal to power sector during Apr 17-Dec 17 against AAP from CIL was 331.44 million tonnes registering 102% materialization of target. Compared to same period last year, offtake has increased by 23.2 million tonnes, with a growth of 7.5 %. Cement Plants The dispatch to cement plants from CIL during Apr 17-Dec 17 was 2.95 million tonnes (provisional) as against 2.64 million tonnes during the same period last year. Compared to same period last year, dispatch has increased by 0.31 million tonnes, with a growth of 11.9 %. Distribution of coal to small, medium and other consumers Under NCDP, the State Governments/ Union Territories were entrusted the responsibility for distribution of coal to consumers having requirement upto 10,000 tons per annum. The coal is to be distributed through agencies nominated by the respective States/UTs. A total of 8 Million Tonnes have been earmarked annually for distribution through the State Nominated Agencies who would be drawing coal after execution of FSA with the concerned coal company. The price charged to such agencies would be the notified price as applicable to other consumers entering into FSA. The agency would be entitled to charge actual freight and margin up to 5%, as service charge, over and above the basic price charged by the coal company, from their consumers. During the year 2017-18 (till 31 st December 17) for distribution of coal to small, medium and other consumers 14 states have nominated 18 State Agencies, of which 09 Agencies have signed FSA for a quantity of 2.02 million tonnes. E-Auction of coal Coal India Limited Coal is being regularly sold through electronic auction (e-auction) route at a market driven price in accordance to the NCDP provision. Currently, CIL is conducting e-auction under different schemes as below: Spot E-Auction: Under this scheme, any Indian buyer can procure coal through a consumer friendly single 60
COAL DISTRIBUTION AND MARKETING window in a simple and transparent manner for their own consumption or for trading. Spot E-auction is in operation from Nov 07 Special Spot E-Auction: Special Spot E-Auction was introduced during 2015-16. Any Indian buyer including traders can buy coal under Special Spot E-Auction with longer validity period of lifting. Special forward E-Auction: Special forward E-Auction was introduced in the year 2015-16 to make the coal available to the power producers with flexible period of lifting. Exclusive E-Auction: Exclusive E-Auction was introduced in the year 2015-16 for non-power consumers including CPP with flexible period of lifting. Performance of different E-Auction schemes from 2015-16 to 2017-18 (till December) is as below: 2017-18 (April-December) Auction Spot Forward Special Forward for Power Exclusive for Non-power Special Spot TOTAL Total Qty allocated (in Mill Tonnes) 40.8 Discontinued 27.4 10.7 0.35 79.4 Total Notified Value (in Crore Rs.) 5705 3175 1625 50 10555 Total Booking Value (in Crore Rs.) 9453 3974 2078 60 15565 Increase over Notified Value(in %) 65.7% 25.1% 27.9% 19.5% 47.5% 2016-17 Total Qty allocated (in Mill Tonnes) 53.7 0.29 47 6.3 6.2 113.6 Total Notified Value (in Crore Rs.) 7421 88 4949 854 895 14207 Total Booking Value (in Crore Rs.) 9288 88 5734 933 1075 17118 % increase over Notified Value 25.2% 0.8% 15.9% 9.3% 20.1% 20.5% 2015-16 Total Qty allocated (in Mill Tonnes) 57.4 5.9 13.8 1.5 78.6 Total Notified Value (in Crore Rs.) 7649 705 1091 163 9607 Total Booking Value (in Crore Rs.) 10230 913 1472 214 12829 % increase over Notified Value 33.7% 29.4% 35.0% 31.5% 33.5% Special auction for Power Special Forward E-Auction for Power producers was launched in 2015-16 which is continued in 2017-18 for making the coal available to the power consumers who are in need of coal. For the period of April-December 2017, around 27.4 MT coal was booked by Power consumers under this scheme. Special Spot E-auction Under the scheme, about 0.35 MT coal was allocated for the period April-December 2017. Exclusive auction for Non-Power Exclusive E-Auction Scheme for non-power consumers was launched in 2015-16 to make coal available to non-power 61
Annual Report 2017-18 consumers (including CPPs).The scheme has been continued in the year 2017-18 wherein a quantity of 10.7 MT has been booked during the period April-December 2017. Performance of different E-Auction schemes in 2017-18(till December) is as below: 2017-18 (April-December) product during Apr 17- Dec 17 has been approximately as under: Sl Modes of Transport Share % 1 Railways (including Rail cum-sea) 55% 2 Road 26% 3 MGR 17% 4 Belt Conveyors/ Ropeways 2% Auction Total Qty allocated (in Mill Tonnes) Total Notified Value (in Crore Rs.) Special Forward for Power Exclusive for Nonpower Special Spot 27.4 10.7 0.35 3175 1625 50 PROGRESS MADE UNDER NEW COAL DISTRIBUTION POLICY (NCDP) Prior to introduction of New Coal Distribution Policy in October, 2007, the consumers were broadly classified in two categories - Core and Non-Core Sector. The basis for earlier classifying consumers was solely based on their role in economic development. However, the erstwhile classification of the consumers under New Coal Distribution Policy has been dispensed with. Total Booking Value (in Crore Rs.) Increase over Notified Value (in %) E-Auction of coal in SCCL 3974 2078 60 25.1% 27.9% 19.5% SCCL has started spot e-auction of coal in December, 2007. The details of coal sold by SCCL through spot e-auction during the period from April, 17 to Dec, 17 are as follows: Company Offered Quantity (Tonnes) Sold Quantity (Tonnes) SCCL 4678650 2658399 MODES OF TRANSPORT % increase over notified price 27% Important modes of transport of coal and coal product in CIL are Railways, Road, Merry-Go-Round Systems (MGR), Conveyor Belts and the Multi Modal Rail-cum-Sea Route. The share of these modes of transport in the total movement of coal and coal Under this policy each sector / consumers have been treated on merit, keeping in view the regulatory provisions applicable thereto. For Power, cement and sponge iron sector, the Standing Linkage Committee (long term) is authorized to recommend their coal requirement. On the basis of such recommendation a Committee on letter of Assurance (CLOA) at CIL issues coal company wise allocation of quantity. Coal companies issue letter of Assurance with specified milestones to be achieved by the LOA holder within stipulated period to become entitled for executing Fuel Supply Agreements (FSA) for coal supply. Supply of Coal to all existing valid consumers has been brought under legally enforceable Fuel Supply Agreements. Progress made by CIL in implementing the provisions of NCDP is summarized below: Coal India Limited Linkage system was replaced with a system of Fuel Supply Agreement (FSA). After implementation of NCDP in October 2007, FSAs of existing consumers were signed in 2008. Tenure of these FSAs being 5 years, many of the FSAs expired. Some of them are renewed or in the process of renewal. Till Dec 17, there are 677 consumers having FSA with coal companies in categories other than Power Utilities. 62
COAL DISTRIBUTION AND MARKETING Sector-wise position of Non-Power FSAs (both under existing and LOA route) executed under NCDP till Dec 17 (Provisional) is as under: Sector Existing (Pre NCDP) Through LOA route Total CPP 104 39 143 Sponge Iron 208 91 299 Cement 40 21 61 Paper 36 36 Aluminum 2 2 Briquette 15 15 SSF 44 44 Cokeries 107 107 Others 121 121 Total CIL 677 151 828 No new FSAs for non-power sector under NCDP were executed in the calendar year 2017, however, FSA executed under the auction of coal linkages/loas to non-regulated sector has been given separately. For Power Sectors, 121 FSAs under pre-2009 TPPs are valid as on date. As per the Presidential Directives dated 17.07.2013, CIL was to sign FSAs with 173 TPPs for the aggregated capacity of 78535 MW, out of these, 24 cases covered under Tapering Linkages ceases to exist as per MOC OM dated 30.06.2015. For 3 cases FSAs could not be signed for the reasons not attributable to CIL. In 2 cases, the category of the units have been changed from CPP to IPP and 1 case have been transferred to SCCL, therefore, as on date, the number of valid FSAs for Post-NCDP Power plants are 143, having an aggregated capacity of 66625 MW for the Annual Contracted Quantity (ACQ) of 227 MT. No New FSAs has been signed under the Presidential Directive dated 17.07.2013. However due to submission of PPA, the FSA quantity has been increased to 227 MT from the earlier quantity of 218.55 MT For supply of coal to small, medium and other consumers (whose requirement is less than 10,000 tons per annum), 8 million tonnes have been earmarked by CIL for allocation to agencies nominated by the State Govts. / Union Territories. Till 31 st December 2017, 14 states have sent their nomination for 18 State agencies for the year 2017-18 of which 09 state agencies have signed FSA for an aggregate quantity of 2.02 million tonnes Import substitution Under the guidance of Ministry of Coal, CIL has taken initiative for substitution of imported coal with domestic coal. Coal India, in this pursuit, organized one-to-one interactions with Power Generators to devise modalities as per suitability of each Power Station. As reported by CEA, the efforts of the Government have resulted into reduction of import by domestic coal based power plants (Sate/central Gencos and IPPs) from 37.2 Mt in 2015-16 to 19.9 Mt in 2016-17. In the current fiscal, till November 17, imports by them have been 11.77 Mt against 14.53 Mt during the same period last year. NEW POLICIES FURTHER TO NCDP Linkage Auction for Non-Regulated Sector Consumers CIL has been conducting Auction of Coal Linkages for Sponge Iron, Cement, CPP, Others (non-coking), Steel (coking) and Others (coking) sub-sectors under Non-Regulated Sector in accordance with the policy guidelines dated 15.02.2016 issued by Ministry of Coal. The auction has been envisaged as a transparent system of linkage allocation which is based on competitive bidding. Various consumer friendly measures such as 3 rd party sampling, exit option, no performance incentive, delivery from specified mine/siding, back-up mine in the event of Force Majeure, etc. have also been introduced. The tenure of the FSA is 5 years which can be further extended by another 5 years on mutual agreement. Three tranches of auction have already been concluded whereby 45.18 Mt of annual coal linkages have been booked at an average premium of 9.64% over non-power notified price. The performance report is placed below. 63
Annual Report 2017-18 Tranche I (Jun 16 to Oct 16) Tranche II (Jan 17 to Jun 17) Tranche III (Sep 17 to Nov 17) Total Sub-sector Quantity booked (MTPA) % gain Quantity booked (MTPA) % gain Quantity booked (MTPA) % gain Quantity booked (MTPA) % gain Sponge Iron 2.05 0.51% 4.29 10.10% 2.54 7.20% 8.88 7.55% Cement 0.68 0.16% 0.77 0.90% 0.12 0.00% 1.57 0.56% CPP 18.07 8.97% 8.18 14.85% 4.59 22.05% 30.84 12.68% Others 1.34 0.76% 1.27 5.14% 0.67 10.60% 3.28 4.50% Steel (coking) -- -- 0.22 0.00% 0.00 -- 0.22 0.00% Others (coking) -- -- 0.04 0.00% 0.36 2.97% 0.39 2.68% Total 22.14 6.95% 14.76 10.60% 8.28 13.37% 45.18 9.64% * % gain over non-power notified price SHAKTI, 2017 (Linkage to Power Sector) In consideration of the stressed assets in new power projects not having any long term linkages, on 17.05.2017, Cabinet Committee on Economic Affairs (CCEA) approved a new policy for allocation of future coal linkages in a transparent manner for such power sector consumers. This policy is known as Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India (SHAKTI). The policy is an important initiative in addressing a key challenge in power sector i.e. lack of coal linkage and is expected to positively contribute in resolution of a number of stressed assets. Ministry of Coal (MoC) circulated the policy guidelines vide their letter dated 22.05.2017. The salient features of the policy are: A) Under the old regime of LoA-FSA i. FSA may be signed with the pending LoA holders after ensuring that the plants are commissioned by 31.03.2022. supply under FSA at 75% of ACQ provided these plants are commissioned within 31.03.2022. v. Actual coal supply to power plants shall be to the extent of long term PPA and medium term PPAs to be concluded in future against bids to be invited by Discoms as per bidding guidelines issued by MoP. With these, the old regime of LoA-FSA would come to finality and fade away. B) Following to be considered under new more transparent coal allocation policy for power sector, 2017-SHAKTI (Scheme for Harnessing and Allocating Koyala (coal) Transparently in India) i. CIL/ SCCL may grant coal linkages to State/Central Gencos/JVs at notified price on recommendations of Ministry of Power. ii. iii. The 583 pending application for LoA may be closed. The capacities totaling 68000 MW as per CCEA decision dated 21.06.2013 would continue to get coal at 75% of ACQ even beyond 31.03.2017. ii. Linkages to IPP having PPA based on domestic coal but no linkage: a. shall be on auction basis where bidders shall quote discount on tariff iv. About 19000 MW capacity out of 68000 MW, which could not be commissioned by 31.03.2015, may be allowed coal b. Bid Evaluation Criteria shall be the non-zero Levellised Value of the discount 64
COAL DISTRIBUTION AND MARKETING iii. Linkages to IPPs/ Power Producers without PPAs shall be on auction basis where methodology would be similar to that followed under linkage auction to non-regulated sector i.e. the bidders would bid for premium above the notified price of the coal company. iv. Coal linkages may also be earmarked for fresh PPAs, by pre-declaring the availability of coal linkage with description, to the States. States may indicate these linkages to Discoms/ SDAs. v. Power requirement of group of States can also be aggregated and procurement of such aggregated power can be made by an agency designated by Ministry of Power or authorized by such States on the basis of tariff based bidding. vi. Linkages shall be granted for full normative quantity to Special Purpose Vehicle (SPV) incorporated by nominated agency for setting up Ultra Mega Power Projects (UMPP) under Central Government initiative through tariff based competitive under the guidelines for determination of tariff, on the recommendation of MoP. vii. MoC in consultation with MoP may formulate a detailed methodology of a transparent bidding process for allocating coal linkages to IPPs, having PPAs based on imported coal, with full pass through of cost saving to consumers. Status of Implementation Under A(i) of SHAKTI Policy, 2 FSAs have been signed and under B(i) 1 FSA has been signed till 31 st December,2017. Linkage auction under para B(ii) of SHAKTI policy has been conducted in Sep 17 whereby 27.18 Mt of annual coal linkage has been booked by successful bidders. The implementation of linkage auction under para B(iii) of SHAKTI policy is presently underway. Coal Consumers Council Regional coal consumer s councils have been set up in each coal company for monitoring and redressing consumer s grievances/ complaints. Moreover, National Coal Consumer s Council set up at CIL (HQ) acts as the apex body in such matters. In case reply on complaints is not received within one month or the complainant is not satisfied with reply provided by the coal company, the matter may be referred to National Coal Consumer s Council. These councils were reconstituted during 2010-11 with induction of many new members In keeping with technological innovations and newer methods of communication, On-line Grievance Management System (OLGMS) had been introduced by CIL some years back to facilitate e-filing of complaints. A customized web-site for such purpose was developed. Subsequently, CIL adapted Centralized Public Grievance Redress And Monitoring System (CPGRAMS) which was designed and developed by National Informatics Centre (NIC). PG Portal of CPGRAMS is used as single window for receipt and disposal of grievances in CIL & its subsidiaries. After successful adaptation of the CPGRAMS, OLGMS was phased out to avoid duplication of work. The link for PG portal has been provided in the web site along with list of nodal officers and their contact details. The complaints and its response are regularly monitored/ reviewed by Grievance Redressal Committee (GRC). The system also generates SMS alert for nodal officers whenever a complaint relating to their department is received. Action is taken to redress the grievance without delay and communication is made to complainant with appropriate response. Wherever interim reply is required, such reply is also sent to the complainant. In case complaints/ grievance relate to coal companies, Nodal officer forwards the same to respective coal companies for their comments/ action. Soon after receipt of comments/ status, the complainant is suitably informed, thus closing the issue. In case the same relates to working of some other department of CIL, the same is forwarded to the concerned department. Grievances/ complaints received on-line are thus being dealt and disposed off expeditiously and efficiently under the above system. 65
66 Annual Report 2017-18
Chapter 8 RESEARCH & DEVELOPMENT ANNUAL REPORT 2017-18
Ministry of Coal Research & Development Status Of Research Projects Under S&T Grant Of Ministry of Coal The R&D activities in Coal sector are administered through an apex body namely, Standing Scientific Research Committee (SSRC) with Secretary (Coal) as its Chairman. The other members of this apex body include Chairman CIL, CMDs of CMPDI, SCCL and NLCIL, Director General (DG) of Directorate General of Mines Safety (DGMS), Directors of concerned CSIR Laboratories, Representatives from Department of S&T (DST), NITI Aayog and Educational Institutions, etc. The main functions of SSRC are to plan, programme, budget and oversee the implementation of research projects. The SSRC is assisted by a Technical Sub- Committee headed by CMD, CMPDI. The R&D projects are covered under 4 thematic areas viz. improvement in production, productivity & safety in coal mines, coal beneficiation, coal utilization and protection of environment & ecology. CMPDI acts as the Nodal Agency for co-ordination of research activities in the coal sector, which involves identification of 'Thrust Areas' for research activities, identification of agencies which can take up the research work in the identified fields, processing the proposals for Government approval, preparation of budget estimates, disbursement of fund, monitoring the progress of implementation of the projects, etc. A total of 390 S&T projects were taken up (till 27.12.2017) and 320 S&T projects completed (till 27.12.2017). PHYSICAL PERFORMANCE The status of Coal S&T projects during 2017-18 is as under: Sl. No. Parameters Quantity 1 Projects on-going as on 01.04.2017 12 2 Projects sanctioned by SSRC during 2017-18 3 Projects completed during 2017-18 (till 27.12.2017) 01 + 02* (*1 project has been sanctioned and will be started w.e.f. 01.01.2018 and another project has been approved by SSRC, Sanction letter from MoC is awaited) Nil (One Project is expected to be completed by March, 2018) 4 Projects on-going as on 27.12.2017 13 Following Coal S&T project is expected to be completed during 2017-18: Sustainable livelihood activities on reclaimed opencast coal mines: a technology enabled integrated approach in Indian coal sector This project is being executed by TERI / TERI University, New Delhi in association with CMPDI, Ranchi and Bharat Coking Coal Limited (BCCL), Dhanbad. The prime aim of the project is to develop permanent green cover on overburden dumps / backfilled mined land areas for eco-friendly mine reclamation, utilization of reclaimed land to develop entrepreneurship and vocational skills among local community for empowerment in and around the project affected areas and to promote local economic growth by driving income generation activities. 69
Annual Report 2017-18 Under this project following activities have been carried out: Data collected on Mining land suitability analysis software 'DEFINITE'. Stylisanthes hamata' and 'Dinanath', two grass species have been spread on the 15 acres Muraidih project site. Soil and water samples were analysed at Indian Council of Agriculture Research (ICAR), New Delhi laboratory for heavy metal content. Post completion of socio economic survey and stake holders participation workshop, livelihood team of TERI University analysed all possible activities. Training program for mushroom cultivation, fisheries were provided to the villagers at VTC STATUS OF RESEARCH PROJECTS UNDER CIL R&D For in-house R&D work of CIL, an R&D Board headed by Chairman, CIL is also functioning. CMPDI acts as the Nodal Agency for processing the proposals for CIL approval, preparation of budget estimates, disbursement of fund, monitoring the progress of implementation of the projects, etc. In order to enhance R&D base in command areas of CIL, the CIL Board in its meeting held on 24 th March 2008 had delegated substantial powers to CIL R&D Board and the Apex Committee of the R&D Board. The Apex Committee is empowered to sanction individual R&D project up to Rs. 5.0 Crore value with a limit of Rs. 25.0 Crore per annum considering all the projects together, whereas CIL Board is empowered to sanction individual R&D project up to Rs. 50.0 Crore. So far, 86 CIL R&D projects have been taken up (till 27.12.2017), out of which 61 projects have been completed (till 27.12.2017). PHYSICAL PERFORMANCE The status of CIL R&D Projects during 2017-18 is as follows: Sl. No. Parameters Quantity 1 Projects on-going as on 01.04.2017 14 2 Projects sanctioned during 2017-18 6 Sl. No. 3 Parameters Projects completed during 2017-18 (till 27.12.2017) Quantity 4 Projects on-going as on 27.12.2017 20 FINANCIAL STATUS Budget provisions vis-à-vis actual fund disbursement during the period are given below: (Rs. in Crores) 2016-17 2017-18 RE Actual RE Actual (till 27.12.2017) 10.00 10.38 25.00 (yet to be approved) 1 Provisional (27.12.2017 to 31.03.2018) 2.76 22.24 Following CIL R&D project was completed during 2017-18: Demonstration of Coal Dry Beneficiation System using Radiometric Technique This project has been completed by CMPDI, Ranchi, Ardee Hi- Tech Pvt. Ltd, Visakhapatnam and BCCL, Dhanbad. The project aims at developing a demonstration plant for dry deshaling of coal based on modified radiometric detection and pneumatic removal technology. The proposed dry beneficiation technology is based on radiometric detection and removal of stones and shale from coal streams and works on the differential gamma ray absorption properties of coal and ash forming minerals. The mass absorption coefficient of coal is dependent on the chemical composition of coal and shale. The distinct advantage of radiometric technology is that the target for clean coal or the threshold value for rejection can be planned and set as per need. This technology is an efficient, dust free and energy friendly also. Under this project, it was proposed to take up this technology at demonstration scale. This project has been executed at Madhuband Washery by installing two modules of ArdeeSort for deshaling coals in the size fraction of 13mm-50mm (in two stages i.e.13-25mm & 25-50mm). 70
RESEARCH & DEVELOPMENT Financial status Budget provisions vis-à-vis actual fund disbursement during the period are given below: 2016-17 2017-18 RE Actual RE Actual (till 27.12.2017) 50.00 13.19 75.00 (yet to be approved) (Rs. in Crores) Provisional (27.12.2017 to 31.03.2018) 49.34 25.66 71
Chapter 9 PROMOTIONAL AND DETAILED EXPLORATION ANNUAL REPORT 2017-18
Ministry of Coal Promotional and Detailed Exploration Promotional Exploration Geological Survey of India (GSI), Mineral Exploration Corporation Limited (MECL), State Governments and CMPDI are conducting Promotional Exploration under the Ministry of Coal s Plan scheme of Promotional Exploration for Coal & Lignite. The summary of Promotional Drilling carried out in coal & lignite during the period 2013-14, 2014-15, 2015-16, 2016-17, 2017-18 (anticipated) and proposed target for 2018-19 is given below: (Drilling in Metre) Command Area 2013-14 Actual 2014-15 Actual 2015-16 Actual 2016-17 Actual 2017-18 Anticipated 2018-19 Proposed BE Drilling in CIL Command Area 53633 67144 52086 49695 76800 105000 Drilling in SCCL Command Area 9553 3575 0 0 0 5000 Drilling in Lignite Areas 68774 68777 60258 55686 40200 90000 Total 131959 139496 112344 105381 117000* 200000* Growth% 16.46 5.71-19.46-6.19 11.02% 70.94% *Achievement of target depends upon timely availability of forest clearance to take up drilling in forest areas, local support and occurrence of lignite in identified blocks. Detailed Drilling In Non-Cil Blocks Detailed Exploration in CIL and Non-CIL blocks are done by CMPDI. This is carried out on a strict timelines to bring resources falling in indicated and inferred category into the measured (proven) category. The exploratory drilling in non-cil/captive Mining blocks is taken up under the Ministry of Coal s Plan scheme of Detailed Drilling in Non-CIL Blocks. The details of actual drilling in Non-CIL/Captive Mining Blocks during the period 2013-14, 2014-15, 2015-16, 2016-17, 2017-18 (anticipated) and proposed target for 2018-19 is given below : (Drilling in Metre) Command Area 2013-14 Actual 2014-15 Actual 2015-16 Actual 2016-17 Actual 2017-18 Anticipated 2018-19 Proposed BE CMPDI Departmental 93742 61427 55769 57663 106000 124000 Outsourcing by CMPDI 144159 220972 231502 251044 286000 496000 Total 237901 282399 287271 308070 3920000 620000 CMPDI has substantially improved its capacity of drilling during the XI & XII plan period. As against the achievement of 2.09 lakh metre in 2007-08, CMPDI has achieved 4.98 lakh metre in 2011-12, 5.63 lakh metre in 2012-13, 6.97 lakh metre in 2013-14, 8.28 lakh metre in 2014-15, 9.94 lakh metre in 2015-16, 11.26 lakh metre in 2016-17. drilling of about 12.50 lakh metre is likely 75
Annual Report 2017-18 to be achieved in 2017-18 (11% Growth) through Departmental resources and outsourcing. For capacity expansion through modernization of departmental drills, 39 new Mechanical drills & 19 Hi-tech Hydrostatic drills have been procured since 2008-09, out of which 15 have been deployed as additional drills and 33 as replacement drills. CMPDI has also replaced 38 mud pumps and 74 trucks in last six years. To meet the increased work load, recruitment has been taken up through campus interviews/open examinations. 259 Geologists, 34 Geo-physicists and 20 Mechanical Engineers as drilling Engineers have joined CMPDI since 2008-09. About 1240 nonexecutive staffs have also been inducted for exploration work. Under outsourcing, the work of 84 blocks involving about 35 lakh metre of drilling was awarded through tendering since 2008-09, out of which drilling has been concluded in 46 blocks. Due to local (law & order) problems, work could not start in 2 blocks and stopped in 8 running blocks. The work is in progress in 25 blocks. Due to lack of forest clearance and adverse law & order problem, about 2.91 lakh metre of drilling could not be carried out in outsourced blocks in 2016-17. During 2017-18, a total of about 7.95 lakh metre (with 11% Growth) is likely to be drilled through outsourcing, out of which 3.76 lakh metre drilling would be done through tendering & 4.19 lakh metre through MoU with MECL. Drilling Performance in 2017-18: CMPDI deployed its departmental resources for detailed exploration of CIL/Non-CIL blocks whereas State Govt. of Odisha deployed resources in CIL blocks only. In addition, nine other contractual agencies have also deployed resources for detailed drilling/exploration in CIL/Non-CIL blocks. A total of 150 to 180 drills were deployed in 2017-18 out of which 64 were departmental drills. Apart from the above, CMPDI continued the technical supervision of Promotional Exploration work undertaken by MECL in coal Sector (CIL & SCCL areas) in 6 blocks and DGM (Nagaland) in 1 block. CMPDI is also carrying out promotional exploration work in 2 blocks. Promotional Exploration work was undertaken by MECL in Lignite Sector in 5 blocks and by GSI in 1 block. A total of 1.17 lakh metre of promotional drilling is likely to be carried out in Coal (0.77 lakh metre) & Lignite (0.40 lakh metre) during 2017-18. In 2017-18, CMPDI and its contractual agencies took up exploratory drilling in 110 blocks/mines of 22 coalfields situated in 7 States. Out of 110 blocks/mines, Departmental drills of CMPDI took up exploratory drilling in 47 blocks/mines whereas contractual agencies drilled in 63 blocks/mines. The overall projected performance of exploratory drilling 2017-18 is given below: Agency Target 2017-18 (lakh m) Performance of Exploratory Drilling in 2017-18 (Projected) Achievement (lakh m) Achievement (%) +/- (lakh m) Achieved Prev. Year: 2016-17 (lakh m) Growth (%) A Detailed Drilling Undertaken by CMPDI I. Departmental 4.75 4.55 96% -0.20 4.41 3% II. OUTSOURCING State Govts. 0.03 0.00 0% -0.03 0.01 MECL (MOU) 4.00 4.19 105% 0.19 3.56 15% Tendering (CIL blocks) 2.04 2.64 129% 0.60 2.20 20% Tendering (Non-CIL blocks) 1.68 1.12 67% -0.56 1.07 47% Total Outsourcing 7.75 7.95 103% 0.20 6.84 16% Grant Total A 12.50 12.50 100% 0.00 11.25 11% 76
PROMOTIONAL AND DETAILED EXPLORATION B. Promotional Drilling by MECL, GSI, DGM (Nagaland) & DGM (Assam) I. COAL SECTOR GSI 0.00 0.00 0.00 0.00 0% MECL 0.808 0.60 74% -0.208 0.484 24% DGM, Nagaland 0.007 0.008 114% 0.001 0.006 34% DGM, Assam 0.005 0.00 0% -0.005 0.00 0% CMPDI 0.03 0.16 533% 0.13 0.00 160% SCCL 0.05 0.00 0% -0.05 0.00 0% Total Coal 0.90 0.77 85% -0.13 0.49 57% II LIGNITR SECTOR GSI 0.00 0.003 0.003 0.035-90% MECL 0.85 0.398 47% -0.451 0.520-23% Total Lignite 0.85 0.40 48% -0.448 0.555-28% Grand Total 1.75 1.17 67% -0.58 1.05 12% In 2017-18, CMPDI is likely to achieve overall drilling targets by 100%. The performance of departmental drilling is better than previous year with likely growth of 3% and recording average operational drills productivity of 555 m/drill/months. Non availability of permission to explore in forest areas & local problems (law & order) has affected the performance of outsourced drilling. GSI has not taken up the promotional exploration in coal. MECL could not achieve the targets of Promotional drilling in coal sector due to forest problems. DGM (Assam) could not deploy its rigs due to adverse law & order condition. Progress of 2d & 3d seismic survey During 2016-17, Seismic survey was taken up in Kewai block and Behraband West Extn. block, Sohagpur Coalfield and a total of 24.95 line km and 35.62 line km of survey was covered respectively. Their reports have been already submitted. NGRI has already conducted 3D Seismic survey in Belpahar block, IB valley Coalfield under the promotional scheme covering an area of 10sq.km approximately in association with Geophysicist of CMPDI. Processing of data is over and interpretation is under progress. The report is expected by March 2018. During 2017-18, 2D Seismic Survey work has been taken up in Gautam Dhara and Dip Side of Block IV, IB Valley Coalfield. Additional two/three blocks will be covered in the current field season covering an area of 40 sq.km approx. A total of 1.03 lakh metre of geophysical logging, 106 line km of Resistivity profiling, 205 nos. of VES and 66 line km is anticipated in 2017-18. Geological Reports In 2017-18, 17 Geological Reports are likely to be prepared on the basis of detailed exploration conducted in previous years. In addition to this, 8 Revised Geological Reports/IGR/GN are also likely to be prepared. Through these Geological Reports about 5 Billion Tonnes of additional coal resources are likely to be upgraded to Measured (Proved) category. Coal Resources Inventory of Geological Resources of coal in India As a result of exploration carried upto the maximum depth of 1200m by the GSI, CMPDI, SCCL and MECL, a cumulative total of 315.149 Billion tonnes of geological resources of coal have so far been estimated in the country as on 01.04.2017. The details of State-wise geological resources of coal are given below: 77
Annual Report 2017-18 STATEWISE GEOLOGICAL RESOURCES OF COAL IN INDIA AS ON 01.04.2017 STATE Category-wise Coal Resources (in Million Tonnes) Measured Indicated Inferred Inferred Total (Proved) (Exploration) (Mapping) WEST BENGAL 13723 12954 4990 0 31667 BIHAR 0 0 1354 0 1354 JHARKHAND 44341 31876 6223 0 82440 MADHYA PRADESH 11269 12760 3645 0 27673 CHHATTISGARH 19997 34462 2202 0 56661 UTTAR PRADESH 884 178 0 0 1062 MAHARASHTR A 7038 3158 2063 0 12259 ORISSA 34810 34060 8415 0 77285 ANDHRA PRADESH 0 1149 432 0 1581 TELANGANA 10402 8542 2520 0 21464 SIKKIM 0 58 43 0 101 ASSAM 465 57 1 3 525 ARUNACHAL PRADESH 31 40 13 6 90 MEGHALYA 89 17 28 443 576 NAGALAND 9 0 104 298 410 GRAND TOTAL 143058 139311 32030 750 315149 Source: Geological Survey of India s Inventory of Geological Resources of Indian Coal as on 01.04.2017. The inventory did not take into account the mined out reserves. 78
PROMOTIONAL AND DETAILED EXPLORATION Categorization of Resources The coal resources of India are available in older Gondwana formations of peninsular India and younger tertiary formations of north eastern 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 meter apart, upgrades the resources into more reliable Proved category. The formation-wise and Category-wise coal resources of India as on 1.4.2017 are given in table below: (In million tonnes) Formation Proved Indicated Inferred Total Gondwana Coals 142464 139212 31885 313561 Tertiary Coals 594 99 895 1588 Total 143058 139311 32780 315149 The Type and Category-wise resources of India as on 01.04.2017 are given in table below: (In million tonnes) Type of Coal Proved Indicated Inferred Total (A) Coking -Prime Coking 4614 699 0 5313 -Medium Coking 13501 12133 1879 27513 -Semi coking 519 995 193 1708 Sub Total Coking 18634 13826 2073 34533 (B) Non-coking 123830 125386 29813 279028 (C) Tertiary Coal 594 99 895 1588 Grand Total 143058 139311 32780 315149 79
Chapter 10 CONSERVATION AND DEVELOPMENT OF TRANSPORT INFRASTRUCTURE ANNUAL REPORT 2017-18
Ministry of Coal Conservation and Development of Transport Infrastructure Coal Conservation Conservation of Coal is an important area, particularly when our Coal reserves are finite. The aspect of conservation of Coal is taken into account right from the planning stage and maximum recovery is ensured during the implementation stage. Mines are designed to work the Coal seams either through opencast or through underground methods depending on the technical feasibility and economic viability. Mechanised opencast (OC) 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 around 80% to 90%. Presently, this technology dominates the Coal industry contributing about 93.3% of country s Coal production. Further, whenever it is feasible, the developed pillars of underground mines are being extracted through opencast operations. Introduction of new technologies like longwall method, shortwall method, highwall mining and Continuous Miner technology have resulted in increased percentage of extraction in underground mining (UG). With the improvement in roof support technology with mechanized bolting with resin capsules 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 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, 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. Due to scarcity of sand, various experimental trials are being conducted to use other materials like fly ash, boiler ash, crushed overburden material etc. for stowing in underground mines as substitute for sand. Currently, crushed overburden material is being used commercially for stowing purposes in underground coal mines where sand is not available in the near vicinity of the mine or it is costlier to transport sand from distant river sources. Conservation and Development of Transport Infrastructure RAILWAY INFRASTRUCTURE PROJECTS In order to achieve the planned growth in production and evacuation in future, CIL has undertaken the construction of major railway infrastructure projects. These railway infraprojects are being implemented by either Indian Railways (on deposit basis) or JV companies formed with IRCON representing Railways, Subsidiary company (representing CIL) and concerned State Government. Presently there are three major rail infrastructure projects (CIL-2 & SCCL-1) being implemented on deposit basis and four rail infra projects being implemented by JV companies. Deposit basis: East Central Railway, Patna is executing the Tori-Shivpur new BG line with a length of about 44.37 km for North Karanpura Area of CCL, Ranchi, and Jharkhand with a project cost of Rs 2399 Cr. South Eastern Railways, Kolkata is executing the Jharsuguda- Barpali- Sardega railway infrastructure project with a length of about 52.412 km for Ib Valley Coalfield of MCL situated in Sundargarh district of Odisha at a cost of Rs 1044 Cr. South Central Railway (SCR), Secunderabad is executing Bhadrachalam to Satuupalli railway infrastructure project with a length of about 53.20 km for Godavari Valley 83
Annual Report 2017-18 Coalfields Coalfields of SCCL situated in Bhadradri Kothagudam district of Telangana at a cost of Rs 704.31 Cr. Joint Venture basis: Execution of Shivpur- Kathotia section, with a length of 49.085 km is being undertaken by a JV company named Jharkhand Central Railway Limited (JCRL) with CCL, IRCON and State Government of Jharkhand as its partner at an estimated cost of Rs 1634.15 Cr. Chhattisgarh East Rail Limited(CERL), a JV company formed by SECL, IRCON and the State Government of Chhattisgarh, is executing the construction of East Rail Corridor, in two phases: Phase I: Kharsia-Dharamjaigarh with spur to Gare- Palma and three feeder lines of about 132 Km. at an estimated cost of Rs 3055 Cr. Phase II: Dharamjaigarh Korba with a length of about 62.5 km at an estimated cost of Rs 1572 Cr. Chhattisgarh East West Rail Limited (CEWRL), a JV company formed by SECL, IRCON and the State Government of Chhattisgarh, is executing the construction of East-West Rail Corridor (Gevra Road to Pendra) via Dipka, Katghora, Sindurgarh and Pasan with a length of about 135 km, Urga- Kusmunda of about 16 Km and Feeder lines of about 35 Km at an estimated project cost of Rs 4919 Cr. Mahanadi Coal Railway Limited (MCRL), a JV company formed by MCL, IRCON and the State Government of Odisha is executing the construction of railway infrastructure projects in the Talcher coalfield of MCL, to cater to the evacuation of coal, in two phases: Phase I (Inner corridor): Angul- Balram- Jharpada- Tentuloi link at Talcher Coalfield of MCL with a length of 69.10 Km. (which consists of the Jharpada- Kalinga- Angul link of 14.22 km length) with an estimated cost of Rs 1300 Cr (excluding the cost of land). Phase II (Outer corridor): Tentuloi- Budhapunk of approximately 136Km length. 84
Chapter 11 SAFETY IN COAL MINES ANNUAL REPORT 2017-18
86 Annual Report 2017-18
Ministry of Coal Safety in Coal Mines Coal India Limited: Safety is always of utmost priority of CIL. Safety is ingrained in mission statement of CIL and is one of the most important components in our overall business strategy. CIL has framed a well-defined safety policy to ensure safety in all mines and establishments. CIL has already established a multi-disciplinary Internal Safety Organization (ISO) in all subsidiaries for the implementation of stated Safety Policy. All operations, systems and processes of CIL are meticulously planned and designed with due regard to safety, conservation, sustainable development and clean environment. CIL has identified work place hazards and associated risks in each mining operation and prepared a Risk Assessment based Safety Management Plan for every mine. CIL always encourages employees participations at all levels so as to promote a proactive safety culture and improve safety awareness up to grass root level employees. Various initiatives are taken on continual basis at all levels to translate the vision of Zero Harm Potential (ZHP) into a reality. Safety performance of CIL: Accidents statistics is the relative indicator for safety status in mines. Over the years the safety performance of CIL in terms of accident has improved significantly. Analysis of Accident Statistics in CIL: This improvement in safety is attributed to the following factors: Collective commitment and synergetic collaboration of the management and employees. Use of state-of-the-art technology in the field of mining methods, machineries and safety monitoring mechanism. Continuous improvement in knowledge, skill and awareness of workforce through imparting quality training and relentless safety awareness drives. Constant vigil, round the clock supervision and assistances from various quarters. Salient features of continuous and sustained improvement in CIL s safety performance: Comparative Accidents Statistics of CIL of 5 Yearly Average since 1975 Time frame Av. Fatal Accidents Av. Serious Accidents Av. Fatality Rate Av. Serious Injury Rate Accident Fatalities Accident Injuries Per Mill. Te Per 3 Lac Manshifts Per Mill. Te Per 3 Lac Manshifts 1975-79 157 196 1224 1278 2.18 0.44 14.24 2.89 1980-84 122 143 1018 1065 1.29 0.30 9.75 2.26 1985-89 133 150 550 571 0.98 0.30 3.70 1.15 1990-94 120 145 525 558 0.694 0.30 2.70 1.19 1995-99 98 124 481 513 0.50 0.29 2.06 1.14 2000-04 68 82 499 526 0.28 0.22 1.80 1.47 2005-09 60 80 328 339 0.22 0.25 0.92 1.04 2010-14 56 62 219 228 0.138 0.23 0.49 0.80 2015-17# 36 45 112 116 0.08 0.19 0.22 0.49 # Average of last three years i.e. 2015, 2016 & 2017 (up to November) & figures are subject to reconciliation with DGMS 87
Annual Report 2017-18 Trend of 5 Yearly Average Fatalities in CIL since 1975 # Average of last three years i.e. 2015, 2016 & 2017 (up to November) & figures are subject to reconciliation with DGMS Trend of 5 Yearly Average of Serious Injuries since 1975 Average of last three years i.e. 2015, 2016 & 2017 (up to November) & figures are subject to reconciliation with DGMS 88
SAFETY IN COAL MINES Trend of fatalities & serious injuries in CIL for last 5 years Overall in CIL - All parameters have shown improvement in 2017 up to November vis-a-vis 2016 Sl. No. Parameters 2017 2016 Change in absolute nos. % of Change 1 Number of fatal accidents 33 38-5 -13.16 % 2 Number of fatalities 36 61-25 -41.98 % 3 Number of serious Accidents 88 113-25 -22.12 % 4 Number of serious injuries 88 118-30 -25.42 % 5 Fatality Rate per Mte. of coal production 0.07 0.11-0.04-36.36 % 6 Fatality Rate per 3 lakhs manshift deployed 0.17 0.25-0.08-32.00 % 7 Serious injury Rate per Mte. of coal production 0.17 0.22-0.05-22.73 % 8 Serious injury Rate per 3 lakhs man-shift deployed 0.41 0.49-0.08-16.33% Note: Accident Statistics are maintained calendar year wise in conformity with DGMS practice & figures subject to reconciliation with DGMS Company Note: Accident Statistics are maintained calendar year wise in conformity with DGMS practice & figures since 2016 are subject to reconciliation with DGMS Fatal Accidents Company-wise Accident Statistics of CIL for the year 2017 Fatalities Serious Accidents Serious Injuries Per Mill. Te Fatality Rate Per 3 lac manshifts Serious Injury Rate Per Mill. Te Per 3 lac manshifts ECL 9 9 18 18 0.25 0.20 0.51 0.40 BCCL 2 2 13 13 0.07 0.06 0.43 0.42 CCL 5 6 03 03 0.10 0.22 0.05 0.11 NCL 3 3 09 09 0.04 0.27 0.11 0.80 WCL 3 3 11 11 0.07 0.07 0.26 0.24 SECL 7 9 29 29 0.07 0.22 0.22 0.70 MCL 4 4 05 05 0.03 0.28 0.04 0.35 NEC 0 0 00 00 0.00 0.00 0.00 0.00 CIL 33 36 88 88 0.07 0.17 0.17 0.41 Note: Accident Statistics are maintained calendar year wise in conformity with DGMS practice & figures subject to reconciliation with DGMS 89
Annual Report 2017-18 Company-wise Accident Statistics during the period 2015 to 2017 Company Fatal Accidents Fatalities Serious Accidents Serious Accidents 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 ECL 07 09 09 07 31 09 39 42 18 40 44 18 BCCL 07 06 02 07 06 02 09 05 13 09 05 13 CCL 02 04 05 02 04 06 05 07 03 05 08 03 NCL 01 04 03 01 04 03 18 13 09 20 13 09 WCL 08 05 03 08 05 03 24 14 11 27 14 11 SECL 10 08 07 10 09 09 33 25 29 35 27 29 MCL 03 02 04 03 02 04 04 07 05 04 07 05 NEC 00 00 00 00 00 00 00 00 00 00 00 00 CIL 38 38 33 38 61 36 132 113 88 140 118 88 Fatality Rate Per MT of coal production Fatality Rate Per 3 lac manshifts Serious Injuries Rate Per MT of coal production Serious Injuries Rate 3 lac manshifts CIL 0.07 0.11 0.07 0.15 0.25 0.17 0.27 0.22 0.17 0.56 0.49 0.41 Major Activities of Safety & Rescue Division of CIL: Inspection of mines to review safety status of mine & follow up action thereof. Prima-facie fact finding enquiry into fatal accidents and major incidences such as Mine fire, subsidence, in-rush of water, slope failure, etc. Imparting specialized training by SIMTARS accredited executive trainers to Unit level and Area level executives, mine officials and members of Safety Committee, who are directly engaged in ensuring safety in mine. Framing of internal technical circulars / management guidelines related to safety issues and monitoring implementation thereof. Maintenance of database of accidents / major incidents. Publication of Safety Bulletin for disseminating and sharing of knowledge in order to promote safety awareness and inculcate better safety culture. Framing reply of different coal mine safety related Parliamentary Questions including queries raised by different Standing Committees such as Standing Committee on Steel & Coal, Standing Committee on Labour, Standing Committee on Subordinate Legislation as well as questions raised by COPU, MOC, CAG and VIPs. Monitoring safety related R&D activities in CIL. Organizing meeting of CIL Safety Board and monitoring recommendations / suggestions made during these meetings. Assisting in organizing the Standing Committee on Safety in coal mines and monitoring recommendations / suggestions made during meeting. Measures taken for improvement of safety in 2017: CIL has vigorously pursued several measures in the year 2017, along with, the on-going safety related initiatives, apart from compliance of statutory requirements for enhancing safety standard in mines of CIL and its Subsidiaries, which are given below: Conducting Safety Audit: Safety Audit of all operating mines of CIL has been conducted through multidisciplinary Inter-Company Safety Audit teams in 2017 for 90
SAFETY IN COAL MINES assessing safety status of mines and violations pointed out during the said safety audits are being rectified as per the stipulated timeline. Online Safety Monitoring System: Online Centralized Safety Monitoring System CIL Safety Information System (CSIS) has been developed and uploaded in CIL website. Relevant safety related information from each mine is being uploaded in the same system on continual basis for better safety management. Imparting Special Training by SIMTARS, Australia accredited Trainers: Executives who had undergone specialized training on Risk Assessment through SIMTARS, Australia are engaged in imparting training and upgrading the knowledge of Mine level executives as well as Members of Safety Committees of individual mines to identify the hazards and evaluate the associated Risks in the mines so as to prepare Risk assessment based Safety Management Plans (SMPs), Principal Hazards Management Plans (PHMPs) and Standard Operating Procedures (SOPs). Establishment of Geo-Technical Cell in all subsidiaries - Geo-Technical cells have been established in all subsidiary HQ headed by a senior level officer of Mining Discipline and assisted by adequate number of Multi - Disciplinary technical experts including Geologist. Safety Management Plans (SMPs) Site-specific risk assessment based SMPs has been prepared for each mine of CIL by involving mine officials and workmen and the same are being updated on continual basis. The process of Risk Assessment in mines is continuous and on-going for improving Safety Standards of Mines on real time basis. All SMPs are being monitored through ISO of each subsidiary. Principal Hazards Management Plans (PHMPs): Principal Hazards Management Plans (PHMP) are also being formulated as a part of Safety Management Plan(SMP) to avert any mine disaster or major mine accident. Recommended control measures thereof in form of Trigger Action Response Plan (TARP) are being implemented to safety deal with emergency, if any. Standard Operating Procedures (SOPs): Sitespecific, Risk Assessment based Standard Operating Procedures (SOPs) for all Mining and Allied operations are framed and implemented. The same are being updated on continual basis to cater to the changing mine dynamics. Conducting Special Safety Drives on different Safety Issues: Special Safety drives on different safety matters are being organized to improve safety standard of mines and enhance safety awareness amongst employees. In this regard, a special drive Meri Company Mera Gourav was conducted from 15 th Oct., 2017 to 15 th Nov., 2017 in all mines spread over different subsidiaries of CIL to intensively make aware on state-of-the-art safe practices grass-root level workmen including their family members and other stakeholders related to mine safety. OB dump Stability Study: Assessment of OB Dumps and Benches have been conducted thoroughly by using expertise of CMPDIL and multi-disciplinary ISO teams in most of the opencast mines. Corrective actions are being taken based on the findings of aforesaid assessment. Guidelines on corrective measures: Several directives / guidelines on corrective measures for prevention of recurrence of similar type of accidents/ incidences in future are being issued by the Safety & Rescue Division of CIL, after analysis of fatal accidents. o o part from the above specific actions, the following are on-going measures for improving safety standards: part from the above specific actions, the following are on-going measures for improving safety standards: Emphasis on adoption of the state-of-the art technology in suitable geo-mining locales: a. Adoption of Mass Production Technology (MPT) in more number in UG mines. 91
Annual Report 2017-18 b. Deployment of more number of Surface Miners to eliminate blasting operation in OCPs. c. Deployment of relatively higher capacity HEMM in more number of OCPs. 92
SAFETY IN COAL MINES d. Mechanization of UG drilling. e. Phasing out manual loading in UG mines. Adoption of the state-of-the art mechanism for Strata Management: o o o o Scientifically determined Rock Mass Rating (RMR) based Strata Support System. Strata Control Cell for monitoring efficacy of strata support system. Mechanized Drilling for Roof bolting. Use of Resin Capsules in place of Cement capsules. o Imparting quality training to support crews & front-line mine officials, supervisors & grass root level workmen. Mechanism for monitoring of mine environment: o o Detection of mine gases by using Methanometer, CO-detector, Multi-gas detector etc. Continuous monitoring of mine environment by installing Environmental Tele Monitoring System (ETMS) & Local Methane Detectors (LMD) etc. o Use of modern Strata Monitoring Instruments. 93
Annual Report 2017-18 o o Regular Mine Air Sampling and Analysis by Gas Chromatograph. Personal Dust Sampler (PDS). i. Wet Drilling & water Sprinklers for dust suppression. j. Use of Shock Tubes & Electronic Detonators for control of ground vibration & fly rocks. o Use of Continuous Ambient Air Quality Monitoring System (CAAQMS) in large OCPs to assess the ambient dust concentration and take suitable mitigative measures. Mine Safety Inspection: o Round-the-clock Supervision of all mining operations by adequate number of competent & statutory Supervisors and mine Officials. o o o o Periodic mine Inspections by Head Quarter and Area level senior officials. Surprise back shift mine Inspections by mine and area level officials. Regular Inspection by Workmen Inspectors appointed in each mine. Regular mine Inspection by officials of Internal Safety Organization of respective subsidiary and CIL. Steps for prevention accidents in OCPs: a. Formulation and Implementation of Mine-specific Traffic Rules. b. Code of Practices for HEMM Operators, Maintenance staff & others. c. Sensitization training of Contractor s Workmen involved in contractual jobs. d. Training imparted to dumper operators on Simulators. e. Lighting arrangement using high mast towers for enhancement of illumination as per stipulated guidelines. f. Eco-friendly Surface Miners for blast free mining and avoidance of associated risks. g. Dumpers fitted with Proximity Warning Devices, Rear view mirrors and camera, Audio-Visual Alarm (AVA), Automatic Fire Detection & Suppression System (AFDSS) etc. h. Ergonomically designed seats & AC Cabins for operators comfort. k. GPS based Operator Independent Truck Dispatch System (OITDS) in large OCPs for tracking movement of HEMMs inside OC mine. l. New Initiatives taken up by CIL in the year 2017: An MoU is in the process of finalization between CIL and SIMTARS, Australia for a. Enhancing skill level of employees of CIL by imparting advanced level training. b. Establishing Mine Virtual Realty Training Centre at IIT (ISM), Dhanbad with the state-of-arttechnology. c. Technical solutions in UG sector in challenging Geo-Mining locales. d. Detection and mitigation of fire and associated hazards in Jharia and Raniganj Coalfields. Development of suitable Training modules based on the concept of Risk Management for all mining and allied operations and revamping of existing The Mines Vocational Training Rule, 1966 in association with DGMS to cater to the present needs. Adoption of concept of Take Responsibility for Accident Prevention (TRAP) for tangible reduction in operation related incidences. Formulation and implementation of Disaster Prevention Strategy to avert occurrence of any disaster in future. Taking up of different R&D Projects in collaboration with Scientific & Technical Institutes in the thrust areas of Safety & Conservation. Mine Emergency Response System: o o Emergency Action Plans has been prepared as per statute for each mine. Mock Rehearsals for examining the efficacy of Emergency Action Plan. 94
SAFETY IN COAL MINES o o o o Demarcating Emergency Escape Routes in belowground. Check list prepared for dealing with an emergency in mine. Flow Chart prepared for transmission of information regarding crisis / disaster in mines from site of accident to the Ministry of Coal, New Delhi. Rescue Services for Emergency Response System in CIL: CIL is maintaining a well establishment Rescue Organization comprising of 6 Mine Rescue Stations (MRS), 13 Rescue Rooms-with-Refresher Training facilities (RRRT) and 17 Rescue Rooms (RR). All Rescue Stations / Rescue Rooms are fully equipped with adequate numbers of rescue apparatus as per the Mine Rescue Rules (MRR) - 1985. This Rescue Organization is staffed by adequate numbers of Rescue Trained Personnel (RTP) as per the MRR-1985. All RTP are being periodically re-trained to conduct rescue operations in hot, humid and irrespirable atmospheres in modern training galleries as well as in mines. CIL employs Permanent Brigade Members and RTPs who are on call 24x7. The Mine Rescue Station and Rescue Rooms are established at strategic locations spreading across different Subsidiaries to cater to the emergencies in their command area. The details are as under: Rescue establishment presently operating Company Mine Rescue Station (MRS) Rescue room with Refreshers Training (RRRT) Rescue Room (RR) ECL Sitarampur Kenda Jhanjra, Kalidaspur, Mugma BCCL Dhansar Moonidih, Madhuband, Sudamdih CCL Ramgarh Kathara & Churi Dhori, Kedla & Urimari SECL Manindragarh Sohagpur, Kusmunda, Johilla, Bisrampur, Baikunthpur Chirimiri, Raigarh, Bhatgaon, Jamuna & Kotma, korba WCL Nagpur Parasia, Pathakhera,Tadali Damua, New Majri & Sasti MCL Brajraj Nagar Talcher - NEC - Tipong - Total 6 13 17 95
Annual Report 2017-18 Safety Monitoring of CIL: Apart from statutory monitoring by DGMS, the status of safety in mines of CIL is being monitored at various levels by the following agencies: Level Monitored By Mine level Workman inspectors: as per the Mines Rule-1955 Safety Committee: constituted as per the Mines Rule-1955 Area level Tri-partite Safety Committee Area Safety Officer Subsidiary HQ level CIL HQ: Corporate Level At National level Tri-partite Safety Committee Internal Safety Organization (ISO) CIL Board CIL Safety Board CMDs Meet. Corporate level ISO. Standing Committee on Safety in Coal Mines National Conference on Safety in Mines. Various Parliamentary Standing Committees Statutory Frame Work for Coal Mine Safety: Coal mining, world over, is highly regulated industry due to presence of many inherent, operational and Occupational Hazards. Coal Mine Safety Legislation in India is one of the most comprehensive and extensive statutory framework for ensuring Occupational Health and Safety (OHS). Compliance of these safety statutes is mandatory. The operations in coal mines are regulated by the Mines Act, 1952, the Mine Rules 1955, the Coal Mine Regulation-2017 and several other statutes framed thereunder. Some of the important statutes related to coal mine safety are as follows: Sl. No. 1 The Mines Act -1952 2 The Mines Rules -1955 Statute 3 The Coal Mine Regulation -2017 ( Notified recently on 27.11.2017) 4 The Mines Rescue Rules -1985 5 The Electricity Act- 2003 6 The Central Electricity Authority (measures related to safety & supply) Regulations - 2010 7 The Mines Vocational Training Rules -1966 8 The Mines Crèche Rules -1966 9 The Indian Explosive Act, 1884 10 The Explosive Rules - 2008 11 The Indian Boiler Act, 1923 12 The Mines Maternity Benefit Act & Rules -1963 13 The Workmen Compensation Act - 2010 14 The Factories Act - 1948 Chapter -III & IV Safety Policy of CIL: Safety is given prime importance in the operations of CIL as embodied in the mission of Coal India Ltd. CIL has formulated a Safety Policy for ensuring safety in mines and implementation of which is closely monitored at several levels. 1) Operations and systems will be planned and designed to eliminate or materially reduce mining hazards; 2) Implement Statutory Rules and Regulations and strenuous efforts made for achieving superior standards of safety; 3) To bring about improvement in working conditions by suitable changes in technology; 4) Provide material and monetary resources needed for the smooth and efficient execution of Safety Plans; 5) Deploy safety personnel wholly for accidents prevention work; 6) Organize appropriate forums with employees representatives for Joint consultations on safety matters and secure their motivation and commitment in Safety Management; 7) Prepare Annual Safety Plan and Long term Safety Plan at beginning of every calendar year, unit-wise and for the company, to effect improved safety in operations as per respective geo-mining needs to prepare the units for onset of monsoon, to fulfill implementation of decisions by Committee on Safety in Mines and Safety Conferences 96
SAFETY IN COAL MINES and to take measures for overcoming accident proneness as may be reflected through study of accident analysis, keeping priority in sensitive areas of roof-falls, haulage, explosives, machinery etc. 8) Set up a frame work for execution of the Safety Policy and Plans through the General Managers of Areas, Agents, Managers and other safety personnel of the units; 9) Multi-level monitoring of the implementation of the Safety Plans through Internal Safety Organization at the company headquarters and Area Safety Officers at area level; 10) All senior executives at all levels of management, will continue to inculcate a safety consciousness and develop involvement in practicing safety towards accident prevention in their functioning; 11) Institute continuous education, training and retraining all employees with the accent placed on development of safety oriented skills; 12) Continue efforts to better the living conditions and health of all the employees both in and outside the mines. B. Neyveli Lignite Corporation India Ltd. Accident Statistics of NLCIL - (for last five years): Year Fatalities Serious Injuries 2013-14 1 4 2014-15 1 1 2015-16 3 2 2016-17 Nil 1 2017-18 (up to November 2017) 1 0 Accident Statistics (for 2017-18): Sl. No Particulars 2017 18 Apr 17 to Nov 17 Mines 1 Numbers of Fatal Accidents 1 2 Numbers of Fatalities 1 3 Numbers of Serious Accidents - 4 Numbers of Serious injuries - 5 Numbers of Reportable Accidents - 6 Total man days worked 2299518 7 Total Production in Million Tonnes 11.95 8 9 10 11 Fatality rate per Million Tonnes of Lignite Production Fatality rate per 3 lakh man shifts deployed Serious injury rate per Million Tonnes of Lignite production Serious injury rate per 3 lakh manshifts deployed Safety Budget & Actual: Year Safety Budget 0.08 0.13 Allocated Actual upto November 2017 2017-18 `552.00 Lakhs About `122.00 Lakhs - - Safety Trainings: Trainings given at GVTC upto November 2017: BASIC TRAINING REFRESHER TRAINING TOTAL NOS. SPECIAL OTHER CONTRACT CONTRACT OF PERSONS EMPLOYEES EMPLOYEES TRAINING TRAINING WORKERS WORKERS TRAINED 64 1488 1188 1783 1435 325 6516 97
Annual Report 2017-18 Safety Trainings given at (L&DC) 2017-18: YEAR NO OF PRGMS. EXE. NON EXE. TOTAL 2017-2018 Upto Nov. 2017 24 151 1389 1540 First Aid Training given in NLCIL Mines 2017-18 upto November 2017: YEAR MINE-I MINEIA MINE-II BARSINGSARMINE NLCIL MINES 2017-18 60 52 79 4 195 Safety Measures: 1. In respect of the above, a working document Safety Management Plan had been brought out and distributed to the operation/ Maintenance areas of NLC India Limited Mines and recommendations are implemented. 2. A well laid Emergency Preparedness Plan/ Pre Monsoon Action Plan is being prepared for every Mine every year to take care of any emergency situation. 3. The Risk Assessment, Occupational Health and Safety Audit for NLC India Limited Mines were carried out in the year 2003, 2007 and 2012 by accredited External Agency. Risk Assessment for NLC India Limited Mines was carried out by ISM, Dhanbad in the year 2016. 4. NLC India Limited has obtained certification for all the Mines as under and the stipulated norms in the certifications and are being maintained. Quality Management System ISO 9001. Environment Management System ISO 14001. Occupational Health and Safety Assessment Series OSHAS 18001. 5. Area wise responsibility with priority to Safety is being enforced at all Mine Operational/ Maintenance Activities for ensuring specific site supervision. 6. Neyveli Mines: An Internal Safety Organization (ISO) is headed by CGM/Safety and Multidisciplinary team for each mine consisting of Engineers from Mining, Mechanical & Electrical discipline. These teams inspect the Mines on daily basis. The suggestions given by the team are implemented then and there. Monthly ISO Safety meeting with all the Safety Officers of respective Mines are held and suggestions given and the implementation are reviewed. 7. Safe Work Practices, for all the important operation/ maintenance of the Specialized Mining Equipments have been formulated/ modelled/ Codified and approved by DGMS and the same is being followed in all spheres of activities. 8. Daily/ Regular/ Periodical Maintenance check lists for the Specialized Mining Equipments had been prepared and enforced for strict compliance. 9. Inter Unit Safety Assessments are being carried out for every quarter to assess safety standards maintained as per statute. 10. Systematic in-depth Accident Analysis is being done and counselling of near just miss/ Serious Accident Victims is being done for accident prevention/ to avert recurrence of accidents. 11. Commitment on inculcating Safety Awareness by way of imparting adequate/ need based training with new training modules to all employees and the Compulsory Training for all categories of employees, including the contract employees before their deployment in Shop Floor and in their assigned working areas. In addition to the above, work related specific job training / refresher training are also being imparted to all categories of employees. 12. Safety Status/ Safety Performance of every activity is being monitored / reviewed under the statutory framework and once in a quarter, Safety performance is reviewed and discussed in the Board. 13. Continuous monitoring of behavioural sense/ attitude/ commitment of employees towards Safety is being done. 98
SAFETY IN COAL MINES 14. Continual improvement on safety awareness in mines through Public Address System, LED display board (JUMBO SIZE), Display of Safety Boards, etc. 15. Week long Safety Week Celebrations are conducted every year to enhance the safety awareness among employees and their families. 16. All efforts are taken at NLC India Limited Mines to impart the best practices to be followed in Mines. NLC India Limited follows the dictum that a Safe Mine is a Productive Mine. The safe worker/ employee are honoured suitably at Safety Week Celebration function conducted every year grandly by NLC India Limited Mines. Workmen/ Employees working in mines are also sent on safety tours to study the working condition/safety methodology followed in other mines. Officers are also sent to Seminars. First Aid Rooms and stations to ensure timely rendering of First Aid Services to the injured. b. Neyveli Mines has got well equipped 359 bed hospital with state of art infrastructure as well as sufficient number of medical and para-medical staff. c. An Occupational Health Dispensary is being operated under charge of qualified medical practitioner in Lignite Shaktinager, Barsingsar Township. Initial Medical Examination: Regular health check-up (IME/PME) is being conducted as per mining legislation. IME (Initial Medical Examination) /PME (Periodical Medical Examination) conducted during 2017-18 up to November, 2017 is given below: 17. Surveillance camera being installed in Specialized Mining Equipments. Sl.No Type of Medical Examination Number of persons Safety & R&D initiatives: a. CCTV Surveillance at Specialised Mining Equipment(SME): SMEs are equipped with CCTV Surveillance systems to monitor and avert inadvertent entry of workforce into accident prone areas. Phase-I completed; for phase-ii ordering is under process. b. Slope Stability Monitoring Radars: Procurement of Slope Stability Monitoring Radars for pre-warning of slope/rock mass movement is in progress. c. Simulator: Procurement of Simulator for imparting training on real-time basis to SME operators and CME operators is in progress. d. Safety related R&D initiatives are being carried out by Center for Applied Research and Development, Neyveli. Emergency response system: Emergency preparedness and response system for Fire, Inundation prepared for all mines and mock rehearsals are conducted at regular intervals 01 Initial Medical Examination 1042 02 Periodical Medical Examination Executives 143 Non-Executives 622 Contract 1228 Total 3035 Singareni Collieries Company Limited: 1. Accident Statistics of SCCL (for the last five years): Year Fatalities Serious Injuries 2012-13 9 375 2013-14 12 321 2014-15 7 271 2015-16 7 225 2016-17 12 224 Occupational Health services: a. All mines have been equipped with sufficient number of 2017-18 (up to Dec) 10 166 99
Annual Report 2017-18 2. Safety Statistics of Coal PSU (SCCL) during the year 2017 is given below. Company Fatal Accidents Fatalities Serious Accidents Serious Injuries Per MT Fatality Rate Per 3 lakh man-shifts Serious Injury Rate Per MT Per 3 lakh man-shifts SCCL: 2017* 11 12 210 216 0.20 0.26 3.57 4.77 * Figures are up to Dec. Note: Figures are subject to reconciliation with DGMS. 3. The company wise accident statistics during 2013 to 2017 is given below. Fatal Accidents Fatalities Serious Accidents Serious Injuries 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 11 8 7 10 11 12 9 7 12 12 364 270 245 216 210 369 271 245 218 216 Note: Figures for the year 2017 are up to Dec. 4. The rate of fatality and serious injury during 2013 to 2017 is given in the table below. Fatality rate per MT. Fatality rate per 3 lakh manshifts Serious injuries per MT. Serious Injuries per 3 lakh manshifts 0.24 0.17 0.12 0.20 0.20 0.24 0.18 0.14 0.25 0.26 7.36 5.25 4.05 3.66 3.57 7.33 5.52 4.98 4.54 4.77 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Note: Figures for the year 2017 are up to Dec. Safety Measures in SCCL: I. Meetings conducted Corporate Safety Department has been conducting Special Safety Review meetings at three regions of SCCL with all Area GMs, Regional Safety GMs, ASOs, Mine Safety Officers, Agents, Area E&M Engineers, Group Engineers and Pit Engineers with focused agenda for reduction of accidents. Suggestions received and difficulties expressed by the participants at unit level are being addressed on top priority. Corporate Safety Review meeting is being held with Directors, Corporate HoDs and Regional Safety GMs for addressing the safety issues that were raised during the Area Safety Audits, recommendations made by ISO & DGMS authorities and also to review the accidents. All accidents are discussed in the review meetings and the steps to be taken to avoid recurrence of such accidents are being discussed. Visuals of spot of accidents are shown in the meetings. Conducted special meetings to review Electrical Safety to reduce/eliminate electrical accidents in future. 100
SAFETY IN COAL MINES Meetings are conducted with OB removal contractors along with Directors to review the safety status in off-loading areas. Implementation of Risk Assessment based Safety Management Plans. II. Training Imparted As part of compliance to the recommendations of 9 th & 10 th Conferences, SCCL has imparted training to 10 Executives at SIMTARS, Australia on SAFETY MANAGEMENT SYSTEM for providing further training to the trainers at operational level. Steps being initiated to establish Safety Management Training Centres each at Ramagundam and Mandamarri areas for imparting training to the Risk Management Teams of mines by SIMTARS Accredited Trainers (SATs). First aid refresher training on Medical First Responder was imparted to Mining supervisors by MicroNet TechNicks (I) Pvt Ltd., Hyderabad. About 1200 employees were extended this training. Training on Electrical Safety in Electrical Installations in Hazardous atmosphere & and testing and Assessment of Refurbished Motors for use in explosive Atmosphere was conducted in all the Regions of SCCL. Safety Awareness Programmes are being conducted for the Contract Workmen by involving the Workmen Inspectors and Pit Safety Committee members to reduce the accidents in underground mines and opencast projects. Advised to impart First Aid training to all Front line supervisors, Mech. & Ele. Supervisors, tradesmen and other category of employees to make available more number of persons to render first aid in needy occasions as per the rule 45 of Mines rules-1955. Workmen Inspectors were imparted Specialised Training programme at the office of Dy.DGMS, SCZ, Hyderabad. III. Guidelines issued Stability of high wall benches/dump yards is being monitored on weekly basis and the same is being submitted to DGMS authorities. A workshop was conducted by CSIRO, Australia on stability analysis and design optimization of OB dumps in deep opencast mines. Advised all Project Officers/Managers of opencast projects to go through the CSIRO, Australia recommendations for stability of high wall/low wall slopes in the Opencast mines for implementation wherever such type of conditions are existing. DGMS (Tech) circular nos. 02/1999 and 01/2013 on guidelines relating to safety of the steel bunkers were circulated to all Areas and advised to take all necessary safety measures as mentioned in the circulars. All area GMs were advised to instruct the concerned to ensure strict compliance on use of resin and cement capsules as grouting material for support purpose in all the underground mines as per DGMS Circulars no. 04 & 05 of 2013, dt.19.07.2013. Advised Mine Managers on immediate medical care at mine surface in emergency to extend necessary medical help with the help of first aid trained personnel or medical personnel before transporting the patient to hospital for further medical aid. Advised regional safety GMs to make haulage inspections in mines for adequacy of all safety provisions and systems including condition of track, man holes, lever operated tongue rails, lighting and guiding of tubs etc. Advised all Area GMs to obtain safety clearance certificate before commencing the mining operations or commissioning of equipments in their jurisdiction. All Mine Managers were advised to see that safety features of equipment/machinery shall be protected and not to allow any alteration except taking help from OEM in order to protect safety of equipment and the personnel operating the equipment. All Managers/HoDs of Mines and safety departments were advised to take up special drive on electrical safety and submit compliance report. Standard Operating Procedures (SOPs) were prepared for dumpers in OC mines and suggested to avoid movement of dumpers in down gradient with gear in neutral position. Steps to prevent violations with respect to usage of drill control panels and gate end boxes of SDLs were advised. 101
Annual Report 2017-18 Guidelines were circulated on shut down procedures during the maintenance/repair on electrical equipment. Guide lines were circulated to educate the workmen suffering from Hypertension and Diabetes for regular usage of medicines to reduce natural deaths at work places. Guidelines were circulated for inspection and operation on safe working of personal carrier vehicles. Guidelines on summer precautions are being circulated every year. Guidelines were issued for systematic extraction, maintaining diagonal of extraction to prevent over riding of falls and dangerous situations in depillaring panels. All Managers were advised to conduct mock rehearsals as per statue. Advised all the mine engineers to maintain records as per CEAR-2010 & CMR 1957 (Now CMR 2017). All Executives & Supervisors were sensitized to cause focused, qualitative and meaningful inspections and strive for utmost safety. All the accidents/incidents are being critically analyzed and advised all the Managers, Agents and concerned Officers to take specific preventive measures in eliminating similar accidents/incidents in future. Area E&M Engineers, Group E&M Engineers, and Pit Engineers were advised to take steps to ensure safe working of all electrical equipment. IV. Inspections & Safety audits Area level committees were constituted with Area Safety Officer, Area Survey Officer and Area Civil Engineer on premonsoon audit inspections and observations relating to dangers due to inundation and preventive steps required for rectification of the deviations, if any were circulated to Mine Managers. Mock rehearsals are being conducted at appropriate time to check the emergency preparedness and timely reports are being sent to the DGMS authorities. Haulage Safety Audit was conducted by constituting a committee with Area Safety Officer, Area Engineer, Mine Safety Officer, WMI (Mining)/Overman and WMI (Mech). Inspections were carried out around all the OC Mines including dump yards to ensure adequate fence is provided in the form of trench and biological fence with babul plantation to prevent any inadvertent entry of the persons. A suitable monitoring system has been kept in place to evaluate mine inspection reports by higher authorities at every level and the compliance of the violations pointed out are being entered into web application which are monitored regularly. The deficiencies observed by the DGMS officers and ISO are being entered into web site and their rectifications are being monitored from time to time. All Area Safety Officers were advised to arrange to complete the enquiries into serious accidents and upload reports into SCCL WEB (within 15 days as per statute) to take corrective steps to avoid occurrence of similar type of accidents by sharing the information. Circulars are being issued on Fatal and Serious accidents with details of preliminary enquiry and findings thereof and the recommendations/precautions to prevent similar occurrences. V. Other safety related measures: Safety Management Plans during the financial year 2015-16 were prepared for all the mines and sent to DGMS based on Risk Assessment Study considering the principle hazards like fire, explosion, inundation and strata failures. Accident enquiries into fatal and serious incidents are being conducted by the GM (S) of the region and guidelines are being circulated to prevent similar accidents/dangerous occurrences etc., ISO is actively participating in monitoring of contractual works, vendors meet, preparation of NIT to address the safety issues. ISO has been discussing Safety issues before implementation of major mining projects. Rear view cameras have been introduced in dumper in open cast mines. 102
SAFETY IN COAL MINES Introduction of Automatic Fire Detection and Suppression Systems (AFD & SS) in all HEMM. As directed by Hon ble Minister for Coal and Power in the 39 th Standing Committee on safety, a Committee was formed to study the procurement of miners shoes and based on their recommendations, procurement process is preferred by open tender with rate contract on two sources as per IS: 3976-2003 and IS: 15298 (pt-1) - 2002 standards to ensure quality and durability. Organising Safety Week, First-aid and Rescue Competitions at Company level. Follow up action and preparation of compliance reports in respect of the following:- Recommendations of Safety Conferences. Recommendations of Standing Committee on Safety in Coal Mines. Bipartite/Tripartite Safety Review Meetings at Company level. Identification of hazards in all mining operations and associated risks thereof. Adoption of the Roof Support System based on geotechnical studies. Phasing out of conventional mining methods. Continuous Miner and Long wall Technologies are being introduced in feasible areas to enhance the safety of workings. Introduction of roof-bolters for Resin-Capsules bolting. Use of Rear-view Cameras and proximity-warning devices in Dumpers in Open cast mines. Men transport systems have been introduced in all underground mines. Chair Lift 41, Mine Cars 11, Winding 4 and Mine Cruisers - 1 Tele Monitoring system for real time monitoring of CH4 and CO gases in UG mines. Analysis of mine Air samples by Gas-Chromatographs. Introduction Automatic fire detection and suppression systems (AFD & SS) in all HEMM. Safety Audits are being conducted on regular basis by constituting committees. To monitor strata control mine environment activities, each region is provided with strata monitoring cells. The services of scientific institutions like, CIMFR, NIRM etc., are being utilized for designing panels for effective strata management and environmental issues. SCCL is contemplating to monitor slope stability by using the latest technology i.e Radar at two opencast mines. Based on the usefulness of this new technology, this monitoring mechanism will be extended to other opencast mines in future. 103
Chapter 12 INTERNATIONAL COOPERATION ANNUAL REPORT 2017-18
Ministry of Coal International Cooperation INDIA-EU COLLABORATION In the meeting of India-EU Energy panel dialogue follow up held on 26.09.2017, it was conveyed that EU should send a comprehensive proposal covering various areas, viz. training components, exchange of technology, physical activities, coal gasification, and carbon capture and the same is awaited. INDIA-US COLLABORATION Indian delegation led by Secretary (Coal) attended 4 th Post Combustion Capture Conference (PCCC4) from 5 th to 8 th September, 2017 at National Carbon Capture Centre (NCCC) in Birmingham, Alabama USA. The conference dealt with the principles of Carbon capture, various process involved, different methodologies practiced/ being developed for carbon capture, the details regarding storage and/or utilizing captured CO2 for EOR (Enhanced oil Recovery), fertilizer production, conversion to valuable liquid hydro carbons, conversion to dry ice etc, the techno economic and its dynamics with regard to Carbon capture. Implementation of the CO2 capture technology can be explored on a small scale as a pilot project involving all stake holders like Coal producers, Power Utility, Refineries, Fertiliser units, Steel industries, Government agencies etc. as an integrated unit which is under consideration. INDIA-AUSTRALIA COLLABORATION A delegation led by Secretary (Coal) visited Australia from 18.06.2017 to 24.06.2017 and the following areas were identified for collaboration- 1. One S&T Project with CSIRO, Australia for Capacity Building for extraction of CMM Resource within CIL Command Areas and CMPDIL (CIL) is progressing. 2. Proposal for R&D Project for Development of Virtual Reality Mine Simulator (VRMS) for improving mine safety and productivity prepared by IIT-ISM, in association with CMPDI is being finalized which has been approved by R&D Board, CIL. 3. Action for further collaboration has been initiated by CIL with CSIRO in the following areas- (a) (b) (c) 3D Seismic Survey, Hydro-Geological Modelling, Longwall Top Coal Caving (LTCC) (Method can be used for high production mine in thick seam underground mining) (d) Wongawilli method of coal mining (This underground mining method can utilize the Continuous Miner or Bolter Miner in Longwall configuration giving higher productivity) Under the proposed Australia-India Energy Dialogue, 4 working groups have been proposed which are: renewable energy and smart grid, power and energy efficiency, coal and mines, oil and gas. A meeting with Australian delegation held in the Ministry on 13.11.2017. The delegation comprised geoscience experts from Australian states who shared information about the latest policy developments in exploration in Australia and also promoting exploration opportunities in Australia. The Australians are interested in investment opportunities and exploration avenues of metal mining in their three States that is Western Australia, Tasmania and New South Wales. A policy on investment in off-shore assets is still under finalization by CIL. INDIA-POLAND COLLABORATION A delegation led by Secretary (coal) and accompanied by Chairman, CIL visited Poland from 6 th to 9 th June 2016 for talks on the development of economic co-operation with Poland in the deep mining and extractive industry. After this visit a Polish delegation came to India and had discussions with CIL officials on 5 th July 2016 and training of Indian executives was agreed to and 15 selected executives of various disciplines from the subsidiaries of CIL had been sent to Krakow, Poland for training in February 2017 for 5 weeks. 107
Annual Report 2017-18 The 2 nd India-Poland JWG on Coal and Energy was held on 23.11.2017 and following areas were identified for cooperation in the agreed minutes - (a) (b) (c) (d) (e) (f) Slope stability of overburden dumps using advanced modelling technique Dry coal beneficiation Extraction of remnant coal pillars with surface structure protection Pre-drainage of CMM and commercial recovery of CBM, and Control measures for mine fires of Jharia Inclusion of the clauses proposed by the Indian side in draft MoU on cooperation in the mining and mining equipment sector to implement technology demonstration projects on the ground. A draft Memorandum of Understanding on cooperation in the mining and mining equipment sector between the Minister of Economic Development and Finance and the Minister of Energy of the Republic of Poland and the Ministry of Coal of the Republic of India has been suggested by the Polish Side which is under examination. INDIA- MOZAMBIQUE COLLABORATION A Memorandum of Understanding (MoU) was executed on 26.05.2006 at Maputo, Mozambique between the Ministry of Coal, Government of India and the Ministry of Mineral resources and Energy, Government of Mozambique. In 2009, CIL won bidding process for grant of Prospecting License of two coal blocks located in Tete Province of Mozambique. Based on results of exploration activities and mineability study revealed that the above coal blocks were not techno-economically viable for commercial mining. Subsequently CIL had relinquished the leasehold area to the Government of Mozambique. So far no potential coal seam has been identified in coal blocks and Mozambique is positioning itself more as an oil rich country than a potential coal rich country the -construction of Apex Planning Organization (APO) and Apex Training Organization (ATO) has been cancelled. INDIA- SOUTH AFRICA COLLABORATION An agreement on co-operation in the fields of Geology and Mineral Resources between the government of the Republic of India and the government of the Republic of South Africa was signed on 17.10.1997 for five years and the following specific areas of co-operation were identified: 1. Multipurpose utilization of mineral resources, geological research and mineral promotion 2. Exchange of scientist, experts and delegations and training of personnel; 3. Joint organization of workshops, seminars and symposium Pursuant to a G2G dialogue in August 2015 between India & South Africa, it was proposed to explore the possibility of a collaboration between Government owned entities of the two countries represented by Coal India Limited (CIL) and African Exploration Mining & Finance Company (AEMFC). It was proposed to sign a Memorandum of Understanding (MOU) between the two companies for identification, acquisition, exploration, development and operation of coal assets in South Africa. Execution of Memorandum of Understanding (MOU) between CIL and AEMFC has been approved by CIL Board. The same is contingent upon revival of bilateral treaty between Government of India and Government of South Africa in the Mineral Sector including coal, as per the South African High Commission to India. A delegation led by Secretary (Coal) visited South Africa from 06.02.2017 to 09.02.2017 to attend Mining Indaba 2017 which is an annual professional conference dedicated to the capitalization and development of mining interests in Africa. The following areas of cooperation were identified: 1. Mining of coal using Continuous Miner with Room and Pillar and other methods and with improvisation in back filling of voids which will prove to be boon in liquidation of coal reserves standing on pillars. 2. By use of advanced coal conversion technologies like Fischer-Tropsch synthesis, as in CTL, vast Indian coal resources could become an important alternative to crude oil. Third Underground Coal Gasification (UCG) network workshop was held on 10 th October, 2017 at Eskom Research Institute Auditorium, Johannesburg, South Africa. The workshop aimed to provide an opportunity to learn about South African UCG roadmap, latest developments in UCG technology and projects. 108
Chapter 13 WELFARE MEASURES ANNUAL REPORT 2017-18
Ministry of Coal Welfare Measures Mining of coal has profound impact on the traditional lifestyle of the original inhabitants and the socio-economic profile of the area. CIL has strongly fostered the belief that people living in mining areas are important stakeholders in the process of mine development and taking various activities for the development of the area, which include. As part of the Corporate Social Responsibility (CSR) mandate, CIL and its subsidiary companies are undertaking different welfare activities, in and around the coalfield-areas for benefit of the SC and ST population. Creation of community assets like provision for potable drinking water, construction of school buildings, check dams, village roads, link road and culverts, dispensaries and hospitals, community centres, etc. Awareness programme and community activities like health camps, medical aid, family welfare camps, AIDS awareness programmes, immunisation camps, promotion of sports & cultural activities, social forestry, etc. Implementation Of Persons With Disability Act, 1995 Statement showing the representation of persons with disabilities in CIL as on 1.12.2017 (Provisional): Company Number of Employees Total VH HH OH ECL 62655 5 15 35 BCCL 49581 0 0 6 CCL 41188 21 10 36 WCL 46245 22 7 72 SECL 59342 21 4 101 MCL 22392 57 15 79 NCL 15107 10 2 44 NEC 1577 0 0 1 CMPDI 3434 3 2 21 DCC 346 0 0 0 CIL (HQ) 918 1 0 0 Total CIL 302785 140 55 395 DETAILS OF APPOINTMENTS IN GROUP C & D SINCE 1996-97(PROVISIONAL). Year No. of persons appointed Number of posts filled under reservation quota VH HH OH 1996-97 To 1.12.2017 10525 115 35 196 111
Annual Report 2017-18 VH = Visually Handicapped HH = Hearing Handicapped OH = Orthopedically Handicapped RESERVATION POLICY The reservation policy is being implemented in recruitment and promotion of Scheduled Castes and Scheduled Tribes as per the Presidential Directives. Direct Recruitment Promotion For Group-A & B Posts SC ST OBC For Groups A,B,C & D SC ST All India basis by means of open Basis competitive test (written) 15% 7 ½% 27% All India 15% 7 ½% All India Basis otherwise than by not conducting written competitive test 16 2/3% 7 ½% Rest limited to 50% Apart from the above, there is a directive on reservation in recruitment on Group C & D posts where state-wise reservation norms are being maintained. Subsidiary-wise/Company-wise reservation percentage is appended below: State Company % age of SC % age of ST % age of OBC Jharkhand BCCL 12 26 12 Jharkhand CCL 12 26 12 Jharkhand CMPDIL 12 26 12 West Bengal ECL 23 5 22 West Bengal CIL,Kol. 23 5 22 Odisha MCL 16 22 12 Madhya pradesh NCL 15 20 15 Chattisgarh SECL 12 32 6 Maharastra WCL 10 9 27 Assam NEC 7 12 27 Group-wise manpower as well as representation of SC/ST/OBC with percentage as on 1.12.2017 (Provisional ) in CIL is given below: Group Total Strength SC % ST % OBC % A 15242 13.80% 5% 13% B 18955 10.95 6.56 19.85 C 163315 25.11 13.29 29.25 D (Excluding Sweeper) 102615 21.71 14.92 22.12 D (Sweeper) 2658 92.46 1.45 0.07 TOTAL 302785 22.66 12.93 25.07 112
Chapter 14 EMPOWERMENT OF WOMEN ANNUAL REPORT 2017-18
Ministry of Coal Empowerment of Women Empowerment of women in CIL and NLCIL is given as under: Coal India Limited As on 01.12.2017, the total strength of female employees in CIL is 20385 out of 302785, which constitute 6.73% of the total manpower. The number of women executives is 969 and the rest belongs to non-executive 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 profession. Moreover, there is a regulation preventing women employees from entering the underground mines. Most of the women executives are in administrative discipline like Personnel, Finance, CSR related etc. The provisions of Maternity benefit Act, Child Care leave and Equal Remuneration Act are being implemented, benefiting the women employees of the organizations in the Ministry of Coal. CIL has established Nurses Training Institutes where training is imparted to the trainee nurse to find opportunity in or around the industry. As per the Wage Agreement, female dependent of the employee who dies while in service is provided with employment or monetary compensation. Based on the guidelines of the National Commission for Women, a women's Cell has been constituted to look into the complaints of women employees against discrimination and sexual harassment. Mahila Mandals, Mahila Samiti and other such forums are working in different units/establishment of coalfields areas to look after the welfare of female employees and female spouses/ dependents. Symposiums, seminars, training programmes and cultural activities are being organized from time to time. A forum for Women in Public Sector in Public Sector (WIPS) has been set up in Kolkata and subsidiary companies. Each WIPS cell is headed by a coordinator who plans and execute activities of the forum with the help of a duly appointed executive committee. The company extends active support to the activities of WIPS comprising of Welfare, Training & development activities, seminars, cultural programs, industrial awareness visits, health awareness programmes etc. In recent years the WIPS cell have done commendable work in reaching out to grass root level women employees, empowering them by suggesting gainful redeployment, training and uplifting their morale by recognizing and honoring outstanding female performance. Activities undertaken by Coal India Limited - WIPS (HQ) in 2017-18 (till date) : A workshop on Health and Financial Awareness was organized for the benefit of WIPS members in CIL (HQ) on 3 rd August 2017. Financial experts from State Bank of India were invited to share their knowledge with the WIPS members. Dr. Saktikana Mitra of ECL spoke on matter related to health awareness and gave handy tips to improve fitness. The focus of the workshop was mainly to improve lifestyle and work related physical ailments and financial health and decision making ability of the women. 4 Women employees were nominated to attend The Regional Meet of WIPS which was organized at Mahanadi Coal fields Limited (MCL), Sambalpur on 28 th October 2017. 3 Women employees were nominated to attend seminar organized by The Eastern Region of WIPS on 16.11.2017 on the theme I aspire-personal effectiveness. Many WIPS member came forward and individually contributed fund to distribute Sarees to the underprivileged women living in Gosaba, Sunderbans. Through this effort a total of 60 Sarees could be distributed and brought big smiles to the faces of underprivileged women on the auspicious occasion of Durga Pooja. Food packets were distributed to a centre for special children i.e. Behala Bodhayan, as they participated in a rally to create awareness on environment and safety. 115
Annual Report 2017-18 30 Mattresses were donated to a home of Specially- Abled children named Bodhana Mentally Retarded Home in Rajarhat. Raw Materials like cloth, threads and needles were donated to Calcutta Blind School for helping them with a tailoring project and giving vocational training. To encourage women volleyball teams various equipments like jersey, shoes, volley ball net, and volleyball were distributed to the Women Volleyball academies like Mogra Volleyball Academy and Howrah khurut Dharmatala Barwari Samity Volley Ball Academy and a friendly match was also organised for them. An Industrial visit to Dankuni Coal Complex was organised by WIPS, CIL on 16 th December 2017. It was a great learning experience as they were given detailed description of the various stages of production of coal gas and various bi-products like Coke etc. During the peak winter season WIPS, CIL (HQ) distributed 100 blankets to the needy in Mogra, Dist. Hooghly (WB) Special nutritional supplements were distributed to the People Living with HIV(PLHIV), as it is important for them to maintain a balanced diet. The package containing protein rich food like Soyabean nuggets, protein powder, oil, daal,daliya etc. were distributed to 200 PLHIV s. Neyveli Lignite Corporation Limited The following activities were organized for developing their potentials. A Committee consisting of senior women executives including a Doctor was formed to protect women employees from Sexual Harassment in work place. For the benefit of the working women employees, Anbalaya a well-equipped Creche with trained personnel is in operation. The NLC India Limited chapter of WIP s has also organized and conducted several sports, cultural activities, group discussions for the benefit of women employees. Training Programmes conducted for women Health and hygiene for women employees. Healthy living for women employees. International women day celebration. Road safety for women employees. Safe driving practice for women. Stress management for women. Sustainability development for women. Women empowerment. Work life balance for women employees. In NLC India Limited the total number of women employees on rolls as on 31 st December 2017 is 1045 including 327 executives. 116
Chapter 15 VIGILANCE ANNUAL REPORT 2017-18
Ministry of Coal Vigilance Function Vigilance Division in the Ministry of Coal oversees the vigilance administration of the Ministry in addition to vigilance issues relating to the organizations working under Ministry of Coal i.e. Coal India Limited (CIL) and its 9 subsidiaries, Neyveli Lignite Corporation India Ltd. (NLCIL), Coal Mines Provident Fund Organization (CMPFO) and Coal Controller Organization (CCO).The CVO of the Ministry coordinates vigilance issues with the Central Vigilance Commission (CVC), Central Bureau of Investigation (CBI), DoP&T and other related organisations. Complaints received in organization are dealt in accordance with the Complaint Handling Policy of the CVC and are processed using the Complaint Tracking System (CTS) from receipt up to disposal in proactive, preventive and punitive manners, such as surprise check, regular checks, quality checks, follow-up checks and CTE type examination to sensitize the employees of the company. The details related to the vigilance cases disposed of during 2017 (for 01.01.2017 to 31.12.2017) and the pending cases are as under :- Source Opening Balance Received during the Year Total Disposed Balance Age wise Pendency (Months) <1 1-3 3-6 >6 CVC 10 18 28 25 3 0 1 2 0 Others 60 200 260 199 61 6 34 12 9 The nature of the pending vigilance cases is regarding the complaints received from MPs, MLAs and general public alleging irregularities in respect of appointment/ promotion of employees, various tenders awarded, theft of coal, corruption regarding compensation, etc. conducted by officers/officials of Ministry of Coal, Coal India Ltd. and its subsidiaries, NLCIL, CMPFO and CCO. Organisational Structure Vigilance Division in the Ministry is headed by Joint Secretary and Chief Vigilance Officer (CVO).Vigilance wings of CIL and its subsidiaries, NLCIL, Coal Mines Provident Fund Organization and Coal Controller Organisation are headed by CVOs appointed on deputation.vigilance issues in respect of below Board-level Officers of the organisation are investigated by the CVO of the company concerned and in respect of Board-level officers, the CVOs of the company furnish factual report to the Ministry for taking appropriate action in consultation with the CVC. Observation of Vigilance Awareness Vigilance awareness week focusing on the theme My Vision- Corruption Free India ßesjk y{; & Hkz"Vkpkj eqdr HkkjrÞ was observed from 30.10.2017 to 04.11.2017. During this week workshops, debates, essay competition, slogan writing competition, quiz etc. were organized in the Ministry and also in all the companies to create awareness on vigilance issues. Review/ Monitoring Mechanism Regular review meetings are being held with the CVOs to review the pending issues relating to vigilance cases and also implementation of IT initiatives. Five (5) meetings were held during this period and details are given as under: Sl. Date Place Reviewed by No. 1. 15.05.2017 New Delhi JS &CVO, MOC 2. 29.05.2017 Kolkata Secretary (Coal), MOC 3. 22.07.2017 New Delhi JS & CVO, MOC 4. 03.08.2017 New Delhi JS & CVO, MOC 5. 04.08.2017 Kolkata Annual Sectoral Meeting of CVC with Coal Sector System Improvement Measures All organizations are active participants in online submission of Immovable Property Return (IPR), rotational transfer of the officers from sensitive to non-sensitive posts, etc. In addition, system of online vigilance status has also been developed and implemented in Coal India Limited and its Subsidiaries. All the 119
Annual Report 2017-18 organizations have finalized the Agreed List and Officers of Doubtful Integrity (ODI) list. Implementation of IT Initiatives To check theft and pilferage of coal, to capture real-time data and to improve operational efficiency, an integrated system consisting of GPS/GPRS based vehicle tracking system connected through a Wide Area Network (WAN) at vulnerable points like weigh bridges, material stores, entry/exit points, stockyard, sidings, explosive magazines, etc. has been conceived and implemented in all the companies of CIL. The status as on 31 st December, 2017 is given as under: S. No. Name of the item Requirement Implementation status as on 31.12.2017 1. GPS/GPRS based Vehicle Tracking System 8683 8683 2. Electronic Surveillance by CCTV 2509 2509 3. RFID based Boom Barriers & Readers 2857 2857 4. Weigh Bridge Status 878 878 5. Wide Area Networking 1282 1197 6. CoalNet Implementation Status 50 47 In addition to the above the Coal companies have taken up several other e-initiatives i.e. e-office implementation across CIL & Subsidiaries, COALNET implementation, Online Refund of EMDs, Installation of in motion weighbridges with RFID, e-procurement, Online Grievance Management System, Online Bill Payment Status, Online Land Inventory records, Online Vigilance Clearance, Online Complaint Filing and Management System, CIL Vigilance Mobile App, Assets Management Portal etc. Based on Vigilance Initiatives a number of system improvement have been suggested and implemented like Bank Guarantee Verification through SFMS System, outsourced OB measurement by CMPDIL (Initial, Annual and Final RL), testing of explosives for quality, use of 3D TLS in face measurement, elimination of pay loader in loading trucks, training of executives in ethics in public governance, constitution & functioning of CIL ethics and integrity club. Grant of Prosecution Sanction During this period, 16 cases were referred by CBI to the Ministry for grant of prosecution sanction/ Regular Departmental Action against the officers/officials who were alleged for the irregularities in allocation of coal blocks. These cases were examined by the Ministry and comments for grant of prosecution sanction/ action to initiate Regular Departmental Action against the officers were issued to DoP&T, being the Administrative Ministry. 120
Chapter 16 PROMOTION OF HINDI ANNUAL REPORT 2017-18
Ministry of Coal Promotion of Hindi Ministry of Coal with all its Subordinate offices/ Companies and Autonomous Body kept its efforts continued for propagating and spreading the progressive use of official language Hindi during the year 2017-18. This Ministry is committed to increasing the use of official language. Instructions received from Department of Official Language, Ministry of Home Affairs and Committee of Parliament on Official Language are circulated regularly amongst the Officers/sections of the Ministry as well as the administrative heads of Subordinate Offices/Companies and Autonomous Body under the administrative control of MoC to ensure implementation of the statutory provisions of Official Language Policy of the Union. In order to increase the use of Hindi in day-to-day official work, various circulars, orders and appeals have been issued regularly. With a view to facilitating noting and drafting in Hindi, bilingual standard drafts, English - Hindi dictionaries, help books etc. have been distributed amongst all officers/sections of the Ministry. A copy of the Annual programme issued by the Department of Official Language for the year 2017-18 for transacting the official work of the Union in Hindi has been circulated amongst all the officers & sections of the Ministry as well as Subordinate offices/ Companies & Autonomous body under the administrative control of the Ministry for achieving the targets fixed for implementation of official language policy of the Union. The Official Language Implementation Committee is already functioning in the Ministry. The meetings of the committee are being organized regularly in the Ministry under the Chairmanship of Joint Secretary. All Subordinate Offices /Public Sector Undertakings and Autonomous Body under the administrative control of the Ministry are also organising such meetings wherein due emphasis is laid on increasing use of Hindi in official work. With a view to creating consciousness as also accelerating the use of Hindi as Official Language in official work in the Ministry and the Subordinate offices/companies and Autonomous Body under its administrative control, Hindi fortnight was organized from 15.09.2017 to 29.09.2017. On the occasion of Hindi fortnight, various competitions were organized for officers / employees in each category. In order to remove the hesitation of officers and employees to work in Hindi, Ministry organizes Hindi workshop from time to time. The 3 rd Sub Committee of Committee of Parliament on Official Language inspected some offices under the administrative control of the Ministry to oversee the status of use of Hindi in Official work and to ensure that the provisions of Official Language Act and Rules made there under are properly complied with and also to suggest the ways and means for effective implementation of Official Language Act in the official work. In addition, with a view to oversee the status of the implementation of official language, the inspection team of the Ministry inspected 03 offices under its administrative control. Ministry purchases Hindi books for library so that conducive atmosphere can be created in order to increase the use of Hindi so that officers/ employees can improve their knowledge of Hindi. Meeting of Hindi Salahkar Samiti of the Ministry under the Chairmanship of Hon ble Minister of Coal has been held on 30.08.2017 and next meeting will be held in near future. 123
Chapter 17 INFORMATION TECHNOLOGY ANNUAL REPORT 2017-18
Ministry of Coal Information Technology With diversification of the ICT landscape and Digital India initiative, it has become absolutely imperative for the Government to bring in qualitative and quantitative transformations in wake of changing user expectations. In the year 2017-18, Ministry of Coal, along with NIC has strived hard and taken lead towards standardization and improvement in IT working environment and service delivery. NIC COAL Computer Centre in Ministry of Coal is well equipped with latest computer systems for delivering and implementing secure multi-platform computer based applications/solutions, database support, Internet, Email, network and video conferencing facilities. Ministry of Coal has adopted Cloud services of NIC - Meghraj. This aims to ensure optimum utilization of the infrastructure and speed up the development and deployment of egovernance applications of Ministry of Coal. The official website of Ministry of Coal http://coal. gov.in is bilingual, user-friendly and provides an easy navigation and quick access to important and latest up-to-date information. A clutter-free responsive design helps the end user to access the site on all handheld devices. The site provides rich updated content such as details of senior officers, organizational setup of the Ministry, subordinate offices links, policies, annual reports, publications, acts, rules, notifications, policies, RTI disclosures, latest announcements and letters. The website is GIGW compliant and certified by STQC. Besides, a website for Minister s office http://ujwalbharat.gov. in is hosted and maintained by Ministry. The site highlights the initiatives and achievements of Ministry of Coal and Ministry of Railways looked after by office of Hon ble Minister. Coal Projects Monitoring Portal has been successfully implemented in the Ministry. This comprehensive MIS links all stake holders of Coal sector Industry, Coal Companies, CIL, NLC, State Governments, Ministries/ Departments and Ministry of Coal. Coal Projects with their pending issues with various States and / or departments are submitted into the system. These issues are closely monitored, discussed and resolved on this platform, thereby eliminating cumulative information seeking and decision making delays. efile is fully functional in Ministry of Coal. There is no physical file or physical movement of file in the Ministry now. Digital Signature Certificates (DSC) are also being used to sign and issue official letters. Coal eoffice modules eleaves, etour, KMS are operational in the Ministry to support e-governance by ushering in more effective and transparent inter and intra-government processes. VPN support for senior officials has been extended for non NICNET nodes / laptops to ensure nonstop working in efile and eoffice. Ministry of Coal has developed a workflow based Online Coal Clearances Portal to provide a single window access to its investors to submit online applications for all the permissions / clearances and approvals granted by Ministry of Coal. The portal has been made ready for launch. This will act as a dashboard for all stakeholders who are involved and interested to obtain clearances for - Coal Mine Lease, Prospecting License, Coal Mine Plan, Land Acquisition under CBA Act, and Mine Opening Permission. Coal Clearances portal of Ministry of Coal has been integrated with e-nivesh Portal of Cabinet Secretariat as well. NIC has conducted a detailed study to develop a comprehensive integrated MIS to monitor Coal Blocks. The study has covered analysis of workflow and flow of information among stakeholders for coal blocks. All requirements have been assessed and the Functional Requirement Study undertaken. Steps have been initiated to design and develop comprehensive system in a phased manner as per the satisfaction of all the stakeholders. Coal Allocation Monitoring System (CAS) is implemented to monitor the allocation of coal by Coal India Limited (CIL) to States, States to State Nominated 127
Annual Report 2017-18 Agencies (SNA) and SNA to consumers in a transparent manner. The system is designed to cater to the consumers through SNA in small and medium sector (erstwhile non-core sector). This web application is developed and designed by NIC and hosted on NIC Cloud with various rich features to usher in faster decisions, establish transparency and to connect all distant stakeholders together. Ministry is extensively using Video Conferencing facility set up in the Ministry to facilitate senior officers to hold important meetings with various Coal PSUs and board meetings. About 86 VC sessions have been conducted successfully for conference duration of about 245.30 hours. Some of the main office automation software being used in the Ministry for day to day working are: Biometric Attendance system, SPARROW for senior officials, E-Visitors, PFMS for payroll. E-governance applications that have been implemented in the Ministry are- RTIMIS to manage RTI cases, AVMS for monitoring ACC vacancies, CPGRAMS for public grievances and Parliament Questions and Supplementary MIS. 128
Chapter 18 RIGHT TO INFORMATION ANNUAL REPORT 2017-18
Ministry of Coal RIGHT TO INFORMATION Details of RTI applications received in the Ministry of Coal during 1 st April, 2017 to 31 st December, 2017: Name of the Quarter I st Quarter (from 1 st April to 30 th June, 2017) 2 nd Quarter (from 1 st July 2017 to 30 th September, 2017) 3 rd Quarter (from 1 st October, 2017 to 31 st December, 2017 Opening balance as on bearing of previous Quarter No. of appl. Received as transfer from other PA Received during the quarter No. of cases transferred to other PA Decision where request rejected Decision where request/ appeal accepted Carry forward for next quarter 28 28 71 27 02 87 11 11 28 45 22 03 59 NIL NIL 26 136 109 05 43 05 131
ANNEXURE ANNUAL REPORT 2017-18
Ministry of Coal Annexure I Audit Para Present Status of the Audit Para Sl. No. Para No. / Report No. Summary of the audit observation Present Status 1. Para 3.2 Report No. 9 of 2017 2. Para 3.5 Report No. 9 of 2017 This Report includes important audit findings noticed as a result of test check of accounts and records of Central Government Companies and Corporations conducted by the officers of the Comptroller and Auditor General of India under Section 143 (6) of the Companies Act, 2013 or the statutes governing the particular Corporations. Coal India Limited (CIL) and its subsidiaries failed to apply due diligence for correct fixation of reserve price for sale of G6 grade non-coking coal through e-auction to non-regulated sectors. Though G6 grade was superior to G7 grade of coal, the reserve price of G6 grade was fixed lower than that of the G7 grade on the basis of the notification of CIL. This resulted in avoidable loss of revenue of `68.16 crore during the period from April 2012 to September 2015. As of March 2016, NLC India Limited operated four open cast lignite mines (three at Neyveli in Tamilnadu and one at Barsingsar in Rajasthan) to generate power through five pithead thermal power stations (TPS) having an aggregate capacity of 3240 MW. Operational performance of three power plants viz. TPS-I, TPS-I Expansion & TPS-II and their linked lignite mines during the period from 2011-12 to 2015-16 and that of Barsingsar Thermal Power Station (BTPS) from 2012-13 to 2015-16 was reviewed in Audit which revealed the following: BTPS could not achieve full capacity utilisationupto 2015-16. Resultantly, the capacity utilisation of the linked mines during the period from 2012-13 to 2015-16 was below the norms fixed by CERC which resulted in under-recovery of cost of `79.78 crore. Due to inadequate supply of lignite in TPS-I and TPS-I Expansion during the period from 2011-12 to 2015-16, the plants could not operate at full load which resulted in loss of `160.64 crore. Under recovery of cost to the tune of `1044.57 crore was observed in respect of the above plants of the Company in different period from 2012-13 to 2015-16 due to the cost of generation being more than the norms fixed by Central Electricity Regulatory Commission (CERC). The reasons for higher cost of generation included: Lower achievement of Plant Load Factor and Plant Availability Factor in BTPS and TPS-I. Higher consumption of lignite due to excess Station Heat Rate (SHR) in respect of BTPS. Extra expenditure on Operation & Maintenance of plants. Excess auxiliary power consumption as against the norms fixed by CERC. Pending Pending 135
Annual Report 2017-18 Sl. No. Para No. / Report No. Summary of the audit observation Present Status 3. Para 6.1 Report No. 12 of 2017 Non-implementation of recommendations of the actuary led to acute deficit in Pension Fund, incorrect diversion of funds from Provident Fund Account to Pension Fund Account, non-adherence to Ministry s guidelines for investment of Provident Fund of own employees, incorrect payment of interest, excess payment of pension, untraced balance of ` 1.71 crore for more than seven years, non-linking of Current Accounts with Corporate Liquid Term Deposit Scheme and non-review of rate of administrative charges adversely affected financial interests of the members of the Coal Mines Provident Fund Organisation. Pending 136
Ministry of Coal Annexure II 137