Coal India Ltd
Chairman Speech
Dear Shareholders,
I am delighted to welcome you all to 48th Annual General Meeting of
your company, Coal India Limited. The Directors' Report and Financial Statements for
the year ended 31st March' 2022 together with the report of Statutory Auditors and
report and review of Comptroller & Auditor General of India are already with you. I am
sure you are fully aware of physical & financial performance of your company.
1. Importance of Coal and Coal India Limited
1 .1 Coal
In India, Coal is the engine of growth for the energy sector. Holding a
share of around 55% of the country's primary commercia energy, Coal is still the
bedrock of India's energy needs.
It was expected that the renewable energy sources will contribute to
the country's fast expanding energy basket. From environmental perspective, this is a
welcome move in view of the climate commitments made by India in COP 26 at Glasgow. But,
till renewable energy starts contributing to the extent that it could take over
coal's role, Coal cannot be dethroned from its energy pedestal To give a perspective,
out of the country's electricity generation of 1,490.277 Billion Units (BU) in
FY'22, coal based generation accounted for 69.9% or1,041.459 Billion Units (BU). This
represents a growth of 9.5% over the preceding year.
In comparison, the generation from renewable energy sources was 11.4%
or 169.396 BU of the total power generation of FY'22. Thi amply underscores the
importance of the need for judicious energy transition from coal to renewables.
At a time when international coal prices are much higher, Coal India
continues to supply its coal to the Indian consumers at highly competitive prices, with no
price increase over last four years.
Coming back strongly from Covid-19 sluggish period, your company posted
a record growth of 21.48% in supplies to power sector during FY'22.
This came even as coal imports of domestic coal based power plants, for
blending purpose, shrunk by 22% to 8.10 MTs compared to FY'21. And, the coal import
slide by imported coal based power plants was 46.14% to 18.89 MTs. Domestic coal producers
stepped in to meet a large extent of the resultant gap with the bulk of supplies from CIL.
Despite the increase in various input costs, especially diesel and
explosives, your company still sustained its profitability registering 31.13% growth in
PBT and 36.81% growth in PAT compared to FY'21.
The entry of renewable energy sources should not be viewed as a threat
to Coal's standing at least in immediate future. Coal would continue to fuel
India's electricity generation going by the current consumption pattern.
Additionally, coal stokes many non-power industries as well viz. steel,
cement, fertilizers, sponge iron, aluminium and a host of other industries.
Indian scenario is different from the rest of the world where the
rallying cry is to move away from coal. What makes coal a preferred energy fuel, in India,
is its abundance, availability and affordability.
1 .2 Coal India Limited
With coal commanding such prominence in the Indian energy sector, Coal
India Limited leads the country's coal production contributing to around 80% of the
Nation's entire coal output. Your company is committed to increase its production and
supplies to the mandated levels to ensure the country gets power at just price.
In a country where 69.9% of the total electricity generation is coal
based, your company virtually empowers the nation's power sector.
CIL's supplies to power sector exceed 80% of its entire despatch.
CIL is also one of the largest contributors to the government
ex-chequer – both Central and State – and also plays a crucial role in
country's social fabric touching the lives of the countrymen in more ways than one
under its corporate social responsibility umbrella.
2. 2021-22: A Year of record highs
Your company's physical performance during 2021-22 has scaled to a
remarkable all-time high creating multiple records in production, off-take, despatches to
power sector and over burden removal (OBR).
Turning out a strong financial performance as well, Gross Sales, Net
Sales and Capital Expenditure have been the highest ever in 2021-22. Profit After Tax has
been the second highest during the year since the inception of the company.
The commitment and perseverance exhibited by your company's energy
soldiers was exemplary, especially in shrugging off the Covid induced placid growth and
bouncing back strongly.
Most subsidiaries of CIL have chipped in with their best performance to
date. Those who could not clock growth, have still performed commendably amid their own
local problems and challenges.
Officials at all levels of hierarchy right from CMDs of CIL's
subsidiary companies down to GMs, Area Managers have donned leadership role in keeping the
spirit up and elevating their respective company's performance.
3. Production & Off-take
Your company produced 622.63 million tonnes (MTs) of coal during the
year which is the highest ever since CIL came into being.
Production for the year represents an increase of 26.41 MTs which is
4.4 % growth over last year's 596.22 MTs.
Five of CIL's subsidiary companies have surpassed the production
of FY' 21 registering growth. They are BCCL (23.75%), CCL (10% NCL (6.42%), WCL
(14.78%) and MCL (13.62%).
During the financial year, MCL became the second CIL subsidiary to join
the exclusive club of 150 MT coal producing companies.
MCL was the top performer with a production of 168.17 MTs achieving 103
% of the target.
BCCL, NCL and MCL have surged ahead of their respective production
targets of FY'22 with achievement of 102%, 103% and 103% respectively.
3.1 Over Burden Removal
CIL recorded an all-time high of 1,362.06 Million Cubic Metres (M.Cu.M)
of OB removal. The 1.29% growth over FY'21 though appears nominal, is significant
because it was recorded over a strong base of 1,344.68 M.Cu.M in 2020-21. Because,
CIL's OBR during FY'21 grew by 16.49% over FY'20.
BCCL (1.48%), WCL (7.49%), and MCL (19.07%) with their growth propelled
CIL's OBR performance during 2021-22, over last year. Composite OC production, which
is extraction of coal and OB combined in OC mines, was 1733 M.Cu.M during the year
compared to 1699 of FY'21.
3 .2 Coal Off-Take
Total coal off-take of 661.89 MTs witnessed a whopping 87.41 MT
increase during the year. Materialization against the target was 89%. This represents a
record growth of 21.48% over the previous fiscal year.
Total coal despatch during the year reflected 15.2% growth over
FY'21 when the off-take was 574.48 MTs.
The single year's incremental growth in off-take is more than the
cumulative increase of last six years(2014-15 to 2020-21), which was 85.1 MTs.
Six of the seven coal producing subsidiaries of your company exceeded
previous fiscal's off-take by considerable margin. In the order of logging maximum
growth they are: MCL (29.45 MTs), NCL (17.01 MTs), SECL (16.94 MTs), WCL (14.47 MTs), BCCL
(9.18 MTs) and CCL (6.46 MTs).
3.3 Supplies to Power Sector
Amidst, spiralling demand for coal from the power sector, CIL's
supplies to this sector registered a record high of 540.57 MTs. Supplies to power sector
during the year represent 98.64% achievement of the demand of 548 MTs, from CIL, projected
by the Ministry of Power and Central Electricity Authority.
Your company supplied 95.60 MTs more coal to power sector during the
year compared to FY'21. This increase in volume terms during the year was higher than
the combined increase of 90.35 MTs achieved during the previous seven year period (2013-14
to 2020-21).
4. Other Marketing Achievements
CIL began the fiscal with 99.13 MTs of stock at its pitheads and
managed to liquidate 38.28 MTs of coal stock during 2021-22, the highest stock reduction
in a year.
Your company's rail loading was highest ever at an average of
271.2 rakes/day compared to 241.4 rakes/day of 2020-21 registerin a growth of 12.3%.
Despatch by Rail and road modes increased by 11% and 41% respectively
during FY'22.
CIL has offered an additional 11.2 MTs coal in two rounds on ‘as
is where is basis' to boost coal stocks at the generating units when an unprecedented
spike in power generation was witnessed in September'21. The offer was made to 12
central and state gencos fro CIL's highly stocked mines through road-cum-rail mode.
Owing to the additional offer lifting from goods sheds & Private
Washery for power sector has achieved a massive growth of 131% & 133% respectively
against FY'21.
Annual contracted quantity of the power plants was enhanced to the
level of 100% of the normative requirement in place of 90% for hinterland plants & 70%
for the coastal power plants (for the plants falling under section 62 of Electricity Act
as per the criteria set by CEA).
The minimum assured level of supply has been increased from existing
75% to 80% of ACQ for FY 2021-22 for the willing power plants.
Inspite of meeting coal demand from the Power Sector, CIL allocated 108
MTs of coal under various e-auction windows during FY
2021-22 gaining an add-on of 88% over notified price.
Coal Sale Dues have decreased by Rs 8,373.64 crores to a level of Rs
13,792.21 crores (after provisioning for coal quality variance etc.).
CIL began FY'22 with Rs 22,165.85 Crore dues.
5. Coal Quality Improvement
CIL's commitment for supply of better quality coal reflected a
positive jump as the grade conformity improved to 66% during FY'22 from 63% over
preceding year, as per the third-party sample analysis.
To ascertain the quality supplied, 492 MTs of coal was sampled and
analysed through third party sampling agency in FY'22 compared to 419 MTs in
FY'21. This was a healthy 17.42% growth in sampling through third party.
The average quality of coal supplied during the year was better than
the declared grade of coal, netting CIL quality bonus.
Surface Miners in opencast mines entail blast free extraction of coal
leading to better quality coal output with consistent sized coal. During the year,
CIL's output through surface miners was 312.33 MTs - 52.32% of the company's
entire OC production. Production growth through surface miners over preceding fiscal year
was 11.6%.
6. Strategies for Growth
Laying impetus for increased production CIL and its subsidiary company
Boards have approved 16 mining projects in FY 2021-22 having a sanctioned capacity of
99.84 MTs per year. These projects will start contributing in the ensuing years.
5 Mining Projects having a capacity of 12.60 MTs per year have been
completed during FY 2021-22.
Your company has devised a transformational plan for operationalizing
14 mines through engagement of Mine Developer cum Operators, having proposed capacity of
165.58 MTs per annum. These mines would contribute in sizeable quantities towards
production in the coming years.
Of these, 10 are opencast projects with total projected capacity of
161.50 MTPA and 4 underground projects with total capacity of 4.08 MTPA.
Letter of Acceptance has been issued to 6 of the successful bidders for
these MDO projects having a total capacity of 96.74 MTPA. Notice Inviting Tender for 7
more projects (5 OC and 2 UG) with capacity of 58.84 MTPA has been floated.
During 2021-22, top 35 high yielding mines, whose progress CIL closely
monitors for enhanced output, have contributed 468.35 MT which is 75.22% of the
year's total production of 622.63 MTs.
3,731.05 Hectares of land was possessed during the year.
7 . Financial Performance
Your company has achieved Profit Before Tax (PBT) of Rs 23,616.28
Crores during the year registering a robust 31.13% growth compared to Rs 18,009.24 Crore
PBT of FY'21.
Profit After Tax (PAT), the second highest so far, at 17,378.42 Crores
posted a strong growth of 36.81% over PAT of 12,702.17 C earned in FY'21.
During Q3 and Q4 Coal India recovered much of the ground in its profit
after tax. (PAT) from a growth compression of 1% in Q2.
Third quarter's PAT registered a sturdy 47.75% growth compared to
same quarter of FY'21, while the fourth quarter witnessed 45.91% growth Your company
has achieved its highest ever Gross Sales of Rs 1,52,667.14 Crores and Net Sales of Rs
1,00,623.37 Crores. While the growth in gross sales over previous financial year is
20.41%, the growth in net sales rose sharply to 21.66%.
Your Company and its Subsidiaries paid/adjusted Rs 49678.36 crores
towards Royalty, GST, GST Compensation Cess, Cess, District Mineral Foundation (DMF),
National Mineral Exploration Trust (NMET) and other levies.
7.1 Record Capex
Your company's capital expenditure of Rs15,400.96 crores in
2021-22 was the highest ever registering 15.94% growth compared to the capex of Rs
13,283.83 Crores of FY'21. What makes the growth all the more significant is that it
comes on the back of a strong base.
Because, CIL's capex during FY'21 more than doubled over the
preceding fiscal's Rs 6,270 crores.
FY'22 capex achieved 104.88% of the target of Rs 14,685 Crores.
The accomplishment comes at a time when Govt. of India had advised CPSEs of the country to
scale up their expenditure to boost the economy.
For the second year in succession, capital expenditure shot over the
target which is yet another record of its own.
The capital expenditure, fully funded through internal resources, was
driven up by many developments of your company like accelerated HEMM procurement process,
land acquisition, coal evacuation initiatives, rail infrastructure strengthening, timely
contract finalizations and execution, joint ventures etc.
The year's record capex will yield positive results to the company
in ensuing years in terms of production and coal transportation
8. Strengthening Mining Fleet
Fast tracking the equipment procurement process to strengthen Heavy
Earth Moving Machinery fleet, your company has formally concluded contracts worth Rs 1,744
crore for installation and commissioning of eleven 20 Cu.M Electric Rope Shovels and Nine
10-12 Cu.M Diesel Hydraulic Shovels. These equipment play a critical role in CIL's
opencast mines for production and OBR.
Pursuing the spirit of ‘Atma Nirbhar Bharat' encouraging
indigenous manufacturers, your company has issued notification award f trial order to BEML
Limited for One 20 Cu.M Electric Rope Shovel at a total value of Rs 118 Crores.
Another trial order for 63 indigenously manufactured 40R57 OTR tyres
worth Rs13.9 Crores, to be used in 240 Tonne Dumpers, was placed on Balkrishna Industries
Limited.
Procurement of Goods through Government e-Marketplace (GeM) portal by
CIL and subsidiaries at Rs 2,061.57 Crores in FY'22 had increased by more than four
and a half fold compared to FY'21. Similar procurement in FY'21 was Rs 440.78
Crores.
The total procurement on GeM portal including Goods & Services was
Rs 2,811.57 Crores during the year.
9. Increasing evacuation infrastructure
For quicker and quality loading of coal having environmental friendly
benefits, your company under ‘First Mile Connectivity Projects', has identified
44 Projects to be implemented in two phases.
In the first phase, out of the planned 35 FMC Projects of 414.5 MTPA
capacity, 3 Projects of 52 MTPA capacity have been commissioned during FY'22. 3
projects were commissioned earlier making it a total of 6 FMC Projects of 82 MTPA capacity
in operation.
In the second phase, out of the 9 FMC Projects of 57 MTPA, Work has
been awarded for 3 FMC Projects of 14 MTPA capacity in FY
2021-22.
The rail connectivity projects commissioned during the year are (i)
Lingaraj SILO with Deulbeda siding at Talcher Coalfields of MCL
(ii) Under Chhattisgarh East Railway Limited Project of Phase I, the
Main corridor between Kharsia to Dharamjaigarh of 74 KM stretch and (iii) CHP-SILOs of
Kusmunda PH-II (SECL) and Sonepur Bazari (ECL).
10 . ERP Go Live
In pursuance of government's endeavour of Digital India, both the
phase of Enterprise Resource Planning (ERP) commenced Go-Live during the year across all
subsidiaries of your company. Phase –II went Go-Live 14.5 months in advance of the
scheduled commencement. ERP's implementation in seven modules - Production Planning,
Finance and Controlling, Plant Maintenance, Sales and Distribution, Project Systems, Human
Capital Management and Materials Management would reap in a bouquet of benefits to the
company. These apart, Hospital Management System in 21 hospitals spread across all
subsidiaries has also been initiated.
ERP's implementation would enable CIL achieve Global best
practices, better Inventory control management, integrated business processes for
optimizing resources, enable informed decisions based on real time and accurate data and
efficient and effective customer management system.
Also benefitting the stakeholders of the company, billing life cycle of
vendors/contractors is reduced from more than a month to around a week.
11. Enriching the Environment
Your company as a concerned corporate citizen is committed to
preservation of environment and creating a green canopy in its mining areas To balance the
carbon-di-oxide emission, CIL has taken up large scale plantation in its mining areas and
has planted over 30.42 lakh saplings during FY'22 expanding its green cover
significantly to 1,468 Hectares (Ha). The achievement against the target of 1,310 Ha is
112%. For the first time Coal India's plantation surged ahead of the three figure
mark.
The growth in plantation was 70% during the year compared to 862 Ha of
plantation done in FY'21.
CIL is committed to maximize utilisation of treated mine water for
community use. During FY'22, the mine water discharged from CIL's mines has
benefitted more than 10.68 Lakh population in 727 villages in the proximity of mining
areas.
Satellite Surveillance of 76 major OCPs, each producing more than 5
Million Cubic Metres of coal and overburden combined per annum, revealed that a total of
62.53% of the excavated area was reclaimed limiting active mining area to only 37.47%.
To determine environmental and economic benefits of implementing
mechanized coal transportation and loading through coal handling plants and silos, a first
of its kind pilot study was conducted in Gevra OC of SECL and Lingaraj OC of MCL. This was
done through ‘Council of Scientific Industrial Research (CSIR) and National
Environmental Engineering Research Institute (NEERI)'. The study revealed significant
reduction in carbon-di-oxide emissions and potential financial savings.
Your company has developed 27 Ecological Parks, Mine Tourism and
eco-restoration sites till FY22 of which 3 eco-parks were developed during the year.
12. CSR: Concern for Community
Your Company is fully conscious and sensitive of its role in reaching
out to the marginalized sections of the society, to enhance the quality of their lives,
through a well-structured Corporate Social Responsibility policy. Coal India is one of the
largest CSR spending entities in the country.
Priority areas in which bulk of CSR fund utilized were Healthcare,
Education and Rural Development.
CIL including its subsidiaries has spent Rs 548.98 Crores under its
corporate social responsibility during FY'22 which is 19.53% higher than the
statutory requirement of Rs 459.27 crores.
With the continued focus on COVID-19 relief measures, Coal India spent
44.45% of the year's CSR expenditure - Rs 244 Crores – under this account.
MCL, in Odisha, has spent Rs 179.78 Crores on dedicated COVID hospitals
at Bhubaneswar, Talcher, Sambalpur & Basundhara. Continuing its Covid care efforts,
during the year, your company had strengthened the dedicated Covid bed availability to
3,619 across the subsidiaries. Of these, 2,493 are Oxygen supported beds which include ICU
beds as well.
With its presence spread over 34 districts of 4 States in the country,
CIL's medical facilities are available in 350 dispensaries and 70 regional and
central hospitals where 3,100 paramedics and 1,100 doctors provide medical solace.
Mahanadi Coalfields Limited has established a 100-seated Medical
College with a 500-bed hospital. Located in Talcher, Odisha and named ‘Mahanadi
Institute of Medical Science and Research' (MIMSR) this CSR initiative came up at an
investment Rs 492 Crore. With the financial assistance from MCL, the Government of Odisha
shall manage the running of the Institute.
Under ‘Mission Praana Vayu' Coal India as a whole has set up
31 oxygen plants in 28 hospitals at a cost of Rs 46 Crores. Of these, 24 are government
hospitals and 4 company hospitals. The O2 plants are capable of supplying oxygen to 5,040
beds.
For infrastructure upgradation of National Cancer Institute, at Nagpur
CIL spent Rs 26 Crores.
13. Talks begin for NCWA-XI
Your company is the largest corporate employer in the country and the
large base of it is comprised of skilled non-executives. CIL lays high priority on timely
conclusion of their wage revision.
Beginning the dialogue on 17th July 2021, CIL has held three meetings
of ‘Joint Bi-Partite Committee for Coal Industry' (JBCCI) during FY'22 to
discuss and finalize the National Coal Wage Agreement – XI. The wage revision
benefitting around 2.39 lakh non-executive manpower is due effective 1st July 2021.
During previous three editions of NCWA, CIL was the first CPSU in the
country to have successfully concluded the wage pact of the workforce. For NCWA-XI as
well, CIL is committed to conclude the wage agreement in an amicable and win-win manner
for both the sides at the earliest.
14. Safety – The Priority Concern
For your company safety, health and well-being of employees has an
overriding importance over other factors. CIL views safety as a priority concern at par
with its performance parameters. The primary concern of CIL is to safeguard its prime
assets – Men, Mines and Machines. Safety norms are viewed holistically to make all
mining operations safe and hazard free.
Coal India's impetus on safety standards resulted in total
accidents falling by 18.8% in 2021 to 90 from a level of 110 in 2020. (Safety statistics
are computed on calendar year basis). In fact, both fatalities (29nos.) and serious
injuries (61nos.) figures in 2021 are the lowest ever since the inception of CIL.
In pursuit of "Zero Harm Potential" in its mines, Coal India
introduced "Personal Safety Counselling" & "Employee Safety Assistant
Programme" for sensitization of employees in safety matter.
The Concept of Suraksha Mitra Mandali / Safety Circle have been
launched to inculcate and share the best safety culture amongst employees.
(i) Mechanization of Underground mines
4 Continuous Miners having a total capacity of 1.64 MT per annum were
commissioned during the year, one each in WCL and ECL and two in SECL.
Letters of Acceptance have been issued for commissioning of 9
Continuous Miners in 6 mines. Of these one is in ECL, two in WCL and the remaining three
in SECL.
(ii) Mining and Transport Contracts
56 Mining & Transport contracts for OBR, coal extraction, coal
transportation in addition to running contracts were awarded in FY 22.
(iii) Surface Coal Gasification (SCG) Projects
Pre-feasibility studies were completed during the year to set up
integrated Coal-to-Chemical (C2C) plants utilizing low-ash coal. These plants are proposed
to be located near mine heads of ECL, SECL and WCL to produce methanol, Ammonia and
Ammonium Nitrate respectively. Tendering process is on.
Plans are on the anvil for setting up a C2C plant utilizing high ash
coal, to produce Ammonium Nitrate (AN) at MCL to cater the requirement of coal producing
subsidiaries. AN is an important component in manufacture of explosives, extensively used
in coal mines of Coal India.
(iv) Introduction of Dual Fuel Operation in 100T Dumpers
Signed an MoU, during the year, with GAIL and BEML for conducting a
pilot project on dual - fuel (Diesel - LNG) operation in two existing diesel operated 100
Tonne Dumpers at MCL by retrofitting LNG Kit. The objective of the study was to determine
economic feasibility including effect on reduction of carbon emission. Based on the
outcome, adoption of LNG for dual fuel operation in other dumpers of Coal India will be
decided.
(v) Employee Training
61,268 employees have been trained in-house. Of these this 13,292 were
executives and 47,976 were non-executives.
3,240 employees have been trained through outbound programs with 3,101
being executives and the remaining 139 non-executives. As per the statutory requirement
under Apprentices Act, CIL and subsidiaries engaged a total of 8,295 apprentices through
the portals of National Apprenticeship Training Scheme and National Apprenticeship
Programme Scheme. Coal India's engagement of apprentices exceed the statutory
requirement of 2.5% of total manpower including contractor workers.
16. Corporate Governance
Your company has complied with the conditions of Corporate Governance,
as stipulated in the Guidelines on Corporate Governance for Central Public Sector
Enterprises (CPSEs) issued by the Department of Public Enterprises, Government of India
and Regulatio 34(3) read with Schedule V of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 with the Stock Excha es.
As required under SEBI (LODR) Regulations 2015, a separate section on
Corporate Governance has been added to Directors' Report and a Certificate for
compliance of conditions of Corporate Governance has been obtained from a peer reviewed
practising Compan Secretary.
Your company has conducted Secretarial Audit for 2021-22 as required
under Companies Act 2013. The Company has complied with the provisions of Companies
Act'13 and SEBI (LODR) Regulations 2015 except for appointment of required number of
Independent Directors till 31st Oct'21, Woman Independent Director till date and non
re-constitution of various sub-committees of the Board till 11th Nov'21. The
Secretarial Audit Report 2021-22 is enclosed as a part of Director's Report. As
stipulated by SEBI, your company had also conducted Secretarial Audit by a peer reviewed
practising Company Secretary for compliance of SEBI Regulations and circulars/ guidelines
during 2021-22 and received a Report with the above observations mentioned in Secretarial
Audit Report 2021-22.
17. Vision
Your company's vision is to ensure that there is no shortage of
coal in the country and to make the country self-reliant in coal. Coal India envisions to
be a commercially viable company and endeavours to move ahead as a contemporary,
professional, consumer friendly and successful corporate entity committed to national
developmental goals. The vision also extends to dedicate itself to the service of the
countrymen in providing the primary commercial energy in an affordable and environmentally
friendly manner. Coal India aims to be not only a valued company but a company with
values.
18. Acknowledgement
On behalf of your Company's Board of Directors, I wish to convey
my deep gratitude to you, our valued shareholders, for your continued support and trust.
This motivates us to excel in all our pursuits and constantly create value for you as well
as for the nation. I appreciate the unstinted support and valuable guidance received from
the Ministry of Coal, Government of India. I also express my sincere thanks to other
Central Government Ministries and Departments, State Governments, all employees, Trade
Unions, Auditors, Consumers, Suppliers and all other stakeholders for their continuous
co-operation.
|
Sd/- |
|
Pramod Agrawal |
|
Chairman -cum- Managing Director |
|
(DIN-00279727) |
| Dated: 26th July' 2022 |
|
| Place : Kolkata |
|
Coal India Ltd
Directors Reports
To
The Members, Coal India Limited
Ladies and Gentlemen,
On behalf of the Board of Directors, I have great pleasure in
presenting to you, the 48th Annual Report of Coal India Limited (CIL) and Audited Accounts
for the year ended 31st March, 2022 together with the reports of Statutory Auditors and
Comptroller and Auditor General of India thereon. Coal India Limited (CIL) is a
'Maharatna' company under the Ministry of Coal, Government of India with headquarter 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 248550 (as on 1st April, 2022).
CIL operates through 84 mining areas spread over eight (8) provincial states of India.
Coal India Limited has 318 mines (as on 1st April, 2022) of which 141 are underground, 158
opencast and 19 mixed mines.
CIL has ten fully owned Indian subsidiary companies viz. 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), Central Mine Planning &
Design Institute Limited (CMPDIL), CIL Navi Karniya Urja Limited for development of
non-conventional/ clean & renewable energy and CIL Solar PV Limited for development of
solar photovoltaic module. In addition, CIL has a foreign subsidiary in Mozambique namely
Coal India Africana Limitada (CIAL). Further CIL has five Joint Venture companies-
Hindustan Urvarak & Rasayan Limited, Talcher Fertilizers Ltd., CIL NTPC Urja Pvt.
Ltd., Coal Lignite Urja Vikas Private Limited & International Coal Venture Private
Limited.
The mines in Assam i.e. North Eastern Coalfields (NEC) is managed
directly by CIL.
Mahanadi Coalfields Limited, a subsidiary of Coal India Ltd is having
four (4) Subsidiaries, SECL has two (2) Subsidiaries and CCL has one (1) subsidiary.
1. State of Company Affairs
1. CIL produced 622.63 MT during 2021-22 which is the highest
production achieved since its inception. Production for the year represented an increase
of 26.41 MTs i.e. 4.4 % growth over last year's production of 596.22 MTs.
2. MCL became the second CIL subsidiary to join the exclusive club of
150 MT coal producing companies. BCCL, NCL and MCL had achieved their respective
production targets of FY'22 with a growth of 24%, 6% and 14% respectively over last year.
3. CIL coal off-take of 661.89 MTs is the highest whopping 87.41 MT
increase over 2021-22.
4. For the first time, the net revenue from operations has crossed Rs 1
Lakh crores.
5. ERP implemented across all subsidiaries of Coal India Limited. Phase
-II went Go-Live 14.5 months in advance of the scheduled commencement
2. Financial Performance
2.1 Financial Results (CIL Consolidated)
For the year, 2021-22 CIL has achieved an aggregate Pre-Tax Profit of
Rs 23,616.28 Crores and post-tax profit of Rs 17,378.42 crores as against pre-tax profit
of Rs 18,009.24 crores and post-tax profit of Rs 12,702.17 crores in 2020-21. The
subsidiary wise details of Pre-tax Profit are given n Annexure I.
Highlights of performance
The performance of Coal India Limited (Consolidated) for the year
2021-22 compared to the previous year is shown in the table below:
| Particulars |
2021-22 |
2020-21 |
| Production of Coal (in million tonnes) |
622.63 |
596.22 |
| Off-take of Coal (in million tonnes) |
661.89 |
574.48 |
| Sales (Gross) (Rs/Crores) |
152667.14 |
126786.13 |
| Capital Employed (Rs/Crores) |
122840.66 |
111194.67 |
| Net Worth (Rs/Crores) |
43124.14 |
36499.58 |
| Profit Before Tax (Rs/Crores) |
23616.28 |
18009.24 |
| Profit for the Period (Rs/Crores) |
17378.42 |
12702.17 |
| Total Comprehensive Income for the period ( Rs/Crores) |
17429.73 |
12066.66 |
| Return on Average Capital Employed (%) |
19.25 |
16.14 |
| Return on Average Net Worth (%) |
43.65 |
37.01 |
| Earnings Per Share (Rs |
|
|
| (Considering Face Value of Rs10 per share) |
28.17 |
20.61 |
| Dividend per Share (Rs)* |
|
|
| (Considering Face Value of Rs10 per share) |
17.00 |
16.00 |
| Inventory Turnover Ratio (as no. of months) |
0.92 |
1.07 |
| Debtor Turnover Ratio (as no. of months) |
1.22 |
1.61 |
*Dividend per share includes Final Dividend and Interim Dividend. For
FY 20-21 & 21-22, the Final Dividend per share is Rs 3.50 and Rs 3.00 respectively.
However, for FY 21-22, final dividend is subject to approval of shareholders in AGM.
Transfer to Reserves General Reserves:
During the year 2021-22, a sum of Rs 862.41 crore (previous year Rs
721.38 crores) was transferred to General Reserves out of CIL Consolidated profits.
Capital Reserves:
Grant / Funds received under S&T, PRE, EMSC, CCDA etc as an
implementing agency and used for creation of assets are treated as Capital Reserve and
depreciation thereon is debited to Capital Reserve Account. The ownership of the asset
created through grants lies with the authority from whom the grant is received. The
balance of grants as on 31.03.2022 and 31.03.2021 is Rs18.90 crores and Rs17.78 crores
respectively.
2.2 Dividend Income and Pay Outs (CIL Standalone)
While the financial statements of both CIL (Standalone and
Consolidated) are presented separately, only CIL Standalone is listed and relevant for
dividend payment to its shareholders. The dividend to its shareholders is paid out of
CIL's Standalone income, the major part of which constitutes the dividend income received
during 2021-22 from its subsidiaries i.e. CCL, NCL, SECL, MCL and CMPDIL. The breakup of
such dividend received and accounted for during the year from different subsidiaries is
given in Annexure 2 Government of India holds 66.13% of CIL total Equity share
capital as at 31st March, 2022.
During the year 2021-22, CIL Standalone had paid interim dividends
twice of total amount of Rs 8627.82 crores @ Rs 14.0 per share against face value of
Rs10/- each fully paid up. Out of above total interim dividend, the share of Govt. of
India was Rs 5705.89 crores and for other shareholders, Rs 2921.93 crores. (previous year
- Total Interim Dividend Rs 7703.44 Crores; Govt of India - Rs 5094.55 crores and Other
shareholders - Rs 2608.89 crores).
Coal India has also paid final dividend of Rs 2156.97 crores @ Rs 3.50
per share for financial year 2020-21. Out of final dividend of FY 2020-21, the share of
Govt. of India was Rs 1426.47 crores.
Further, Board of directors of the company have recommended a final
dividend of Rs 3.00 per equity share for the financial year 2021-22 on 25th May, 2022
which is subject to the approval of shareholders in the Annual General Meeting (AGM) of
the company to be held for the financial year 2021-22.
2.3 Supplementary Audit of Financial Statements by Comptroller and
Auditor General of India (C&AG).
The comments of C&AG on supplementary audit under section 143(6)(b)
[and also read with Sec 129(4)] of the Companies Act, 2013 of Standalone and Consolidated
Financial Statements for the Financial Year 2021-22 are enclosed as (Annexure 3 and
Annexure 4) along with Management explanation.
2.4 Management Explanation on Statutory Auditor's Report
The statutory auditors of the company have given an unqualified report
[Annexure 3(A) and Annexure 4(A)] on the Standalone Financial Statements and
Consolidated Financial Statements respectively of the company for the financial year
2021-22. However, they have drawn attention to certain matters under "Emphasis of
Matters".
In the audit report on Standalone Financial Statement, under emphasis
of matter paragraph in point (d) regarding non-current investments in two wholly owned
subsidiaries of CIL, the matter has been adequately explained in footnote 1 of note no.7.
Except point (d) in the audit report on Standalone Financial Statement,
all other points correspond with points (1), (2), (3), (16), (5), (28) and (6) of the
audit report on consolidated Financial Statements, which are explained as under:
1. Regarding not providing impairment of assets of Tikak, Tipong and
Tirap colliery at NEC due to temporary suspension of mining operations, the matter has
adequately been explained in note no. 38(7)(o) and 38(8)(o) of additional notes to
Standalone and Consolidation Financial statements respectively.
2. Management foresee the progress of Tirap OCP and Tikak West
Extension mines in coming period and therefore impairment of the exploration and
evaluation assets related to these mines have not been made.
3. In respsect of Capital Advance deposited to the Forest Department of
the Government of Assam against forest lands related to Lekhapani OCP, no provision has
been made as the management is under process of filing application for refund/adjustment
of said deposit.
4. With regards to accumulation of GST ITC due to inverted duty
structure; It is explained that CIL has already taken up the matter with higher
authorities/MoC, it has been decided to carry forward such ITC.
5. Holding company could not comply with section 149, 177, 178, 188 of
the companies Act, 2013 and regulation 17, 18, 19, 20, 24, 33 read with SEBI (LODR)
Regulations, 2015 for constitution of Board and various committees due to non-availability
of Independent and Women Directors, since the power to appoint Directors vests with the
Administrative Ministry i.e. Ministry of Coal, Govt. of India.
6. The matter of Point no. 6, 9, 10, 11, 14, 15, 17, 21, 25, and 26, of
audit reports are declaration by auditor.
7. In case of CCL, regarding pending fixation of price mechanism of
washed medium coking coal supplied to M/s. SAIL & M/s. RINL, the matter has been
adequately explained under Note - 38 (8) (j)(vi).
8. In respect of contingent liability related to environment clearance
of CCL, the matter has been adequately explained in Note 38(1) (a) (1) of the Consolidated
Financial Statements of the Company.
12. In case of CCL, related to compensation of Government land, the
matter has been adequately explained under note 38 (8) (j) (vii) of the Consolidated
Financial Statements.
13. In case of BCCL, management is under process of evaluating the
Progressive Mine closure expenses incurred for FY 2021-22 and FY 2020-21. 16. Certain
modifications/rephrasing in existing Significant Accounting Policies made during the year
in case of intangible assets, employee benefits, estimates and assumptions has been
explained in Note 38 (3) (b) of the Consolidated Financial Statements.
18. In case of SECL, IRCON balance of Chattisgarh East Railway Limited
(CERL) reconciliation of transactions is being carried out in phased manner and Management
of CERL has assured that reconciliation process will be completed expeditiously.
19. Under SECL, additional investment in CERL is still under process
and therefore at reporting date the same is different from predefined rate of MoU &
AoA, however after completion of additional investment process the equity participation
ratio will reach at the predefined ratio. 20. In case of CERL under SECL, in view of
extension of commercial operation date, management of CERL is under process of revising
the original budgeted cost for the said project.
22. Under SECL, CERL could not comply with requirement of women
director in Board under section 149 of the Companies Act, 2013, since appointment of Board
members are made by administrative ministry of Government of India.
23. In respect of Chhattisgarh East - West Railway Limited (CEWRL)
under SECL, execution of loan agreement for interest amount payable to promoter/ lender
companies is under process.
24. In case of BCCL, CCL, NCL and WCL, regarding non-confirmation of
certain balances on reporting date, it is explained that periodical confirmation and
reconciliations are done considering the volumes of transactions and parties.
27. In case of MCL, provision for doubtful debts to the tune of Rs
62.73 Crore has been withdrawn since the matter is sub-judice before AMRCD.
28. 29. & 30. related to implementation of new ERP Software (SAP)
during the year is mentioned in footnote under Note 4 of the financial statements. Due
process has been followed in migration of data from Coalnet to SAP. It is now under
stabilisation stage. Once, it is stabilised, the entire process would be audited by an
outside agency.
3. Coal Marketing 3.1 Sale of Coal
The raw coal offtake during 2021-22 stood at its highest ever level of
661.89 Mill Tes [including 0.764 Mill Tes of coal purchased from Odisha Coal and Power
Limited (OCPL) and resold by MCL in terms of the provisions for sale of excess coal by
OCPL to CIL as per the Coal Mine Development and Production Agreement entered between
Government of India and OCPL and 0.142 MT of coal which was sold from Talabira mines
through e-auction as per guidelines of Ministry of Coal] in comparison to 574.48 Mill T
during 2020-21.The offtake in 2021-22 recorded a growth of 15.2% over 2020-21 breaking all
the previous records of offtake and wagon loading performance.
Company-wise target vis-?-vis actual off-take for 2021-22 and 2020-21
are shown in Annexure 5 Some of the constraints hampered despatch in 2021-22 which can
be listed as under: o Less supply of rakes by railways especially in MCL and NCL
throughout the year. o Unloading constraints at Paradip port resulting in less supply
through RSR route to Southern India based plants. o Production constraints at Rajmahal due
to land acquisition issue resulting in very low supply through MGR to NTPC Plants (Farakka
and Kahalgaon ) o Law and order issues at various coalfields. o Extended and unseasonal
rainfall hampered the transportation and dispatch. o Less availability of sized coal,
especially at SECL and WCL hampered loading.
Despatch of coal and coal products during 2021-22 was at 662.566 MT.
540.571 Mill Tes of CIL coal was despatched to the major consumers of CIL coal, i.e., the
power sector consumers. Sector-wise break-up of despatch of coal & coal products for
2021-22 against the target and last year's actual is given in Annexure 6 Auction of
coal through Spot e-Auction, Special Spot e- auction scheme for Import Substitution,
Special Spot e-Auction, Special Forward e-Auction for Power and Exclusive e-Auction for
Non-Power schemes had continued during 2021-22. During the year, CIL successfully
allocated 108 Mt under different windows of e-auction at an average premium of 88% over
the notified price. During the year, CCEA (Cabinet Committee on Economic Affairs) approved
the single window mode agnostic e-auction by clubbing the existing five windows of
e-auction. The decision of CCEA was communicated by MOC vide circular no.
CPD-23011/18/2021-CPD dated 21.03.2022. In pursuance to the decision, the process for
finalization of the methodology of single window mode agnostic e-auction has been
initiated by CIL.
3.2 Long term demand creation
Additional long term demands are created through linkages allotted
through the following schemes formulated by the government: A. Scheme for Harnessing and
Allocating Koyala (Coal) Transparently in India (SHAKTI), for Power Sector notified by the
government on 22.5.2017.
B. Auction of coal linkages to Non-Regulated Sector (NRS) notified by
the government on 15.2.2016.
A. Shakti
SHAKTI Policy contains provisions for coal supply for various
categories of power plants fulfilling different criteria.
Until 2021-22, MoC has recommended for signing of FSA with 9 Thermal
Power Plants (TPPs) under the provisions of Para A(i) of SHAKTI for an Annual Contracted
Quantity of 32.255 MT and FSAs have been signed with 8 TPPs for the ACQ of 31.155 MT.
Also, on the recommendation of SLC (LT), FSAs have been signed under the provisions of
Para B(i) of SHAKTI with 8 Central/State Gencos for an ACQ of 29.093 MT as on 31.3.2022.
Till FY 22, four rounds of auction have been conducted under Para B
(ii) of SHAKTI wherein linkages of 36.19 MTPA has been booked by the power plants, out of
which FSAs for 31.87 MTPA had been executed. The levellised discounts in tariff offered by
the power plants in four rounds of the auctions was in the range of 1p/kWh to 12 p/kWh.
Under Para B (iii) of SHAKTI, linkage of 6.48 MTPA had been booked by
the power plants out of which FSAs for 4.84 MTPA had been executed until 2021-22. Further,
the process for conducting second round of Shakti B (iii) auction has been initiated
during the last quarter of FY 22. Further, auctions under para B (viii-a) covering para B
(iii) of SHAKTI policy were also conducted during 2021-22 for the four quarters of the
financial year wherein a total of 4.54 MT quantity was booked by the power plants out of
which FSAs for 4.39 MT was executed by the power plants.
B. Auction of coal linkages to Non-Regulated Sector
Fresh linkages to consumers in Non-Regulated Sector (NRS) are granted
through auction of linkages conducted in terms of the policy formulated by the government
on 15.2.2016. The coal against the linkages secured in the linkage auctions are supplied
under the FSAs to be executed for a period of 5 years, the tenure of which can be extended
further for 5 years upon mutual consent. In case of Steel Sector, a directive has been
received from MOC, for providing linkage for 15 years with provision for mutual extension
for another 15 years.
During this fiscal CIL conducted linkage auction for the subsectors
Cement. CPP and Other (non-coking). The subsector wise performance is as below:
1. Cement subsector - a quantity of 2.95 MTPA has been booked at an
average premium of 25%.
2. CPP subsector - a quantity of 38.33 MTPA has been booked at an
average premium of 8.7%.
3. Others (non-coking) subsector - a quantity 2.89 MTPA has been booked
at an average premium of 54.71%.
Cumulatively, for linkage auction conducted till FY 22, 130.19 MTPA
have been booked by the NRS consumers at an average premium of 17.85% over the Notified
Price.
3.3 Long term demand committed through FSAs:
Considering the FSAs executed earlier with the power plants under the
provisions of NCDP and the FSAs executed under various provisions of SHAKTI, the operative
linkage for 598.61 MTPA exists with the Power Sector as on 31.3.2022, which is bound by
long term supply commitments through FSAs.
The total commitments with Non-Power consumers, including ACQ against
the operative FSAs executed under the earlier linkage regime under NCDP, linkages secured
under the linkage auction policy for Non-Regulated Sector notified by the government on
15.2.2016 and the FSAs executed with State Nominated Agencies, stands at around 59 MT as
on 31.3.2022.
To cope up with any scenario of deficit in availability of coal,
provision exists in the FSAs to peg the supplies at various levels of commitment.
3.4 Consumer satisfaction 3.4.1 Quality Management
For enhanced customer satisfaction, special emphasis has been given to
Quality Management of coal from mine to dispatch point. Now, all the consumers of CIL have
the option for quality assessment of the supplies through independent third-party sampling
agencies. In order to ensure supply of good quality/sized coal, two reputed global quality
assurance service providers namely COTECNA Inspection India Private Limited and SGS India
Private Limited have been engaged in addition to the existing third-part agencies (CIMFR
& QCI) for undertaking the job of sampling and analysis of coal samples at loading end
in CIL subsidiaries. Further on behalf of MoP, PFC empaneled M/S Mitra SK Pvt Ltd through
bidding process for collection, preparation and analysis of coal samples at loading end
for power sector.
Out of 58 coal testing laboratories across the subsidiary companies of
CIL, 56 laboratories are now NABL accredited and accreditation process is underway in
respect of another 02 laboratories.
As a result of conscious and continuous measures taken towards quality
maintenance, the gap between the weighted average of declared and analyzed GCV of coal,
based on results received till 31.03.2022 for FY 2021-22 is only 52 Kcal/kg which is well
within one GCV band.
3.4.2 Linkage Rationalization:
Linkage rationalization initiatives to reduce the cost of
transportation of coal and cost of generation of power were continued during the year
2021-22 also. Under the ambit of the linkage rationalization policy notified by the
government on 15.5.2018, sources of linkage for a quantity of 7.80 MTPA for the IPPs was
rationalized in 2021-22, yielding a potential savings in transportation cost by about Rs
457 crs. Rationalization in respect of IPPs is in the process. In addition to that, CIL as
per the request from the State Genc and subsequent directives received from MoC, CIL has
rationalized 7.644 MTPA for the State Gencos in 2021-22 with a potential savings in
transportation cost by about Rs 624 Crs.
3 .5 Coal Beneficiation:
CIL is presently operating 13 Coal Washeries with a total operable
washing capacity of 24.94 MTY. Out of these, 11 are coking coal washeries and balance 2
are non-coking with operable capacities of 13.94 MTY and 11 MTY respectively. The total
washed coal production including middlings from these existing washeries during 2021- 22
was about 9.693 MT, out of which washed coking coal was 1.609 MT, a growth of more than
35% from 2020-21.
In March 2022, Madhuband Washery (5 MTY) was inaugurated by the Hon'ble
Minister of Coal and is expected to be under commercial operation from July 2022. To
enhance the beneficiation capacity of coking coal, CIL is further setting up 3 new
Washeries in BCCL having total throughput capacity of 7 MTY. Out of these, 2 are under
construction (4.5 MTY) and 1 (2.5 MTY) under tender finalization. 6 coking coal washeries
are also being set up in CCL with a total capacity of 18 MTY — 2 in 1st Phase and 4
in 2nd Phase.
In addition to the above, CIL is also setting up a non-coking coal
washery at Ib Valley, Lakhanpur in MCL, which is under an advanced state of construction
and expected to be commissioned in Financial Year 2022-23.
3.6 Stock of Coal
The stock of coal (net of provisions) at the close of the year 2021-22
was Rs 5412.88 Crores (previous year Rs 7619.11 crores), which was equivalent to 0.65
months value of net sales (previous year 1.11 months). The company-wise position of stock
held on 31st March 2022 & on 31st March 2021 are given in Annexure 7 3.7 Trade
Receivables
Trade Receivables i.e. net coal sales dues outstanding as on 31st Mar'
2022, after providing Rs 2424.53 crores (previous year Rs 2542.73 crores) for bad and
doubtful debts, was Rs 11367.68 crores (previous year Rs 19623.12 crores) which is
equivalent to 0.89 months Gross Sales of CIL as a whole (previous year 1.86 months).
Subsidiary-wise break-up of Trade Receivables outstanding as on 31st March 2022 as against
31st March 2021 are shown in Annexure 8 3.8. Payment of Royalty, GST, GST Compensation
cess, Cess, DMF and NMET & Others
During the year 2021-22, CIL and its Subsidiaries paid Rs 49678.36
crores (previous year Rs 41987.79 crores) towards Royalty, GST, GST Compensation cess,
Cess, DMF and NMET and other levies as detailed as per details given in Annexure 9
4. Coal Production & Future Outlook
Raw coal production and production from underground and opencast mines.
Production of raw coal was 622.63 Mill Te during 2021-22 against 596.
22 Million Tonne during 2020-21. Production from Opencast mines during 2021-22 was 95.88%
of total raw coal production.
Subsidiary-wise production, production from underground and opencast
mines and coking and non-coking production are given in Annexure 10 Washed Coal
(Coking) Production– Subsidiary-wise production of Washed Coal (Coking) is given
in Annexure 10A
Overburden Removal– Company-wise overburden removal is
disclosed in Annexure 10B Future Outlook
Based on the demand projection in 'Vision 2024' for coal sector in the
country and subsequent demand projection on CIL, a roadmap has been prepared to project
production plan in medium term wherein CIL has envisaged 1 Billion Tonne (BT) coal
production by the year 2024-25 and beyond to meet the coal demand of the country. CIL has
already identified all resources required, including major projects, that will contribute
to its 1 BT production plan and its related issues/enablers like requirement of EC/FC,
land, evacuation constraints etc. CIL is committed to achieve 1 BT production plan with
the active support of MoC and all other stake holders.
CIL shall adhere to 1 BT coal production plan but the demand scenario
shall decide the production/supply in future.
The proposed capital expenditure for the year 2022-23 has been set at
Rs16500 Crores. Further, as per the investment plan, CIL has planned to invest substantial
amount in diversification projects viz. Solar Power, Thermal Power Plant, Revival of
Fertilizer Plants, Surface Coal Gasification (SCG), CBM, etc. during 2022-23.
5. Population of Equipment
The Population of Major Opencast Equipment (Heavy Earth Moving
Machinery) as on 1st April' 22 and as on 1st April' 21 along with their Performance in
terms of Availability and Utilization expressed as percentage of CIL norm is mentioned in Annexure
11 About 400 old and out lived major HEMM have been surveyed off and 42 shovel, 428
Dumpers, 63 Dozers, 25 Drills and 9 surface Mi were commissioned during 2021-22.
In the Financial year 2022-23, CIL is planning to procure High Capacity
Equipment of more than Rs 2277 Crores for enhanced coal production target in the coming
years.
6. Capacity Utilization
During 2021-22, total volume of coal and overburden handled by CIL was
about 1733 M. Cum. The overall system capacity utilisation of CIL thus worked out to be
about 77.10 %.
Overall capacity utilisation of CIL was affected due to various issues
mainly the continued effect (2nd wave) of outbreak of pandemic since 2020 and those
related to delay in physical possession of land, R&R and related law & order
issues, encroachment, diversion of forest land & heavy rain. The continued effect of
outbreak of COVID-19 pandemic (2nd wave) and imposition of subsequent restrictions on
vulnerable econom c areas, resulted in subdued demand of coal by power and non-power
sector during the 1st half of FY22 which adversely affected coal production & offtake
of CIL in the 1st half of FY22, though recovered in the subsequent quarters with increased
economic and industrial activities that resulted in enhanced coal demand.
7 Project Formulation 7.1 Project Implementation: a) Projects Completed
during the year 2021-22:
5 coal projects with a sanctioned capacity of 12.60 MTY and sanctioned
capital of Rs 1769.41 Crores were completed with a total completion capital of Rs 1727.66
Crs. during the year 2021-22. Details are given in Annexure 13 b) Project started
Production during the year 2021-22:
NIL c) Status of Ongoing Projects (Costing Rs 20 Crores &
above):
117 coal projects with a sanctioned capacity of 918.86 MTY and a
sanctioned capital of Rs 132633.96 Crores are in different stages of implementation out of
which 75 Projects are on schedule and 42 Projects are delayed. The major reasons for delay
in implementation of these projects are delay in FC, possession of land and issues related
to R&R.
7.2 Projects Sanctioned (Costing Rs 20 Crores & above): a)
PR/UCE/RPR/RCE sanctioned by CIL Board & Subsidiary Board during 2021-22:
16 Mining Projects with a sanctioned capacity of 99.84 MTY and
sanctioned capital of Rs18309.19 Crores were approved by CIL and Subsidiary Boards during
2021-22. Details are given in Annexure 13 b) Non-Mining Projects sanctioned by CIL
& Subsidiary Board during 2021-22:
3 non-mining projects with a Sanctioned capital of Rs 5551.09 Crores
were approved during 2021-22. Details are given in Annexure 13 7.3 Key Strategies:
Strategies for Coal Evacuation:
Company had adopted following strategies for development of coal
evacuation infrastructures:
First Mile Connectivity (FMC) Projects:
Under CIL's flagship 'First Mile Connectivity Projects', 44 Projects
have been identified for implementation in two phases which will upgrade the mechanized
coal transportation and loading system. FMC Projects will help increase mechanized
evacuation from 151 MTPA currently to 622.5 MTPA.
In the first phase, out of the planned 35 FMC Projects of 414.5 MTPA
capacity awarded at a capital investment of Rs 10,750 Cr. 6 FMC Projects of 82 MTPA
capacity viz. Kusmunda PH-I (10MTPA), Lingaraj (16 MTPA), Krishnashila (4 MTPA), Block-B
Rail Connectivity, Kusmunda PH-II (40 MTPA) and Sonepur Bazari (12 MTPA) have been
commissioned till 31st Mar' 2022.
Out of the balance 29 projects, 28 projects of 312.5 MTPA are under
various stages of construction LoA/WC has been terminated i n 1 project of 20 MTPA due to
FC issues.
In the second phase, out of the 9 FMC Projects of 57 MTPA with an
estimated investment of about Rs 2,500 Cr., LoA/WO have been issued for 3 FMC Projects of
14 MTPA capacity in FY 2021-22, viz. Kumardih- B CHP of 1 MTPA, Hura C CHP-SILO of 3 MTPA
and Mungoli- Nirgud CHP-SILO of 10 MTPA capacities. The rest are under different stages of
formulation and approvals.
Target completion of all the projects is FY24 for Phase-I and FY-25 for
Phase- II.
Status of Rail Projects :
CIL had identified 07 Railway Projects for evacuation of coal, out of
which 03 were funded by CIL on deposit basis and 04 were funded through JVs/SPVs by CIL.
The status of these projects were as under :
Funded by CIL on Deposit Basis:
1) Tori-Shivpur New BG Double Rail line (43.70 KM) has been
commissioned, thus enabling coal evacuation from the Greenfield areas of North Karanpura
Coalfield in CCL.
Tripling of this rail line is under construction at an additional
capital of Rs 894 Crs. which shall increase its capacity from ~ 65 MTPA to ~ 100 MTPA.
Tripling works likely to be operationalized by Mar'23.
2) Jharsuguda -Barpali- Sardega New BG single line (52.41 KM) has been
commissioned, thus enabling coal evacuation from the Greenfield areas of Basundhara
Coalfield of MCL.
Doubling of this Rail line from Jharsuguda to Sardega along with coal
loading bulb at Barpali and double line Fly-over at Jharsuguda along with Augmentation
works of Jharsuguda Railway Station are under execution at an estimated capital of Rs 3200
Cr., thereby enhancing its capacity from - 34 MTPA to ~~65 MTPA.
3) Rail Connectivity of Lingaraj SILO with Deulbeda siding at Talcher
Coalfields of MCL has been commissioned in Jul'21 which has resulted in an
incremental evacuation capacity by ~ 5 MTPA.
Funded through JVs/ SPVs by CIL:
1) Jharkhand Coal Rail Ltd (JCRL), in the State of Jharkhand under CCL
command area.
Shivpur-Kathautia Railway Line, 49 Km in North Karanpura Coalfield of
Jharkhand - Financial Closure and Land acquisition are in progress. This rail line shall
facilitate in evacuating ~ 25 MTPA coal from the Greenfield area of N K Coalfield.
2) Chhattisgarh East Rail Ltd (CERL) - Developing the East Rail
Corridor in the state of Chhattisgarh under SECL command area.
Phase -I:
• The Main corridor from Kharsia to Dharamjaigarh (0-74 KM) was
commissioned in June 21. The first block section of the spur line from Gharghoda to
Bhalumuda (0-14 Km) is also completed and safety certificate issued by SECR. Loading of
Coal is regular from Korichhapar, Gharghoda and Dharamjaigarh Freight Terminals.
Phase-II:
Financial Closure and Land acquisition is in progress.
Commissioning of CERL Rail Project shall enhance coal evacuation
capacity by ~ 30 MTPA from the Mand-Raigad coalfield.
3) Chhattisgarh East West Rail Ltd (CEWRL) - Developing the East West
Rail Corridor in the state of Chhattisgarh under SECL command area. This new rail line
shall connect Gevra Rd. to Pendra Rd., 135 Km, and shall facilitate upcountry movement of
coal from Korba Coalfield. Financial Closure was achieved in Sep'20. Construction
works are underway and is anticipated to be completed by Mar‘24. This shall enhance
coal evacuation capacity by ~ 62 MTPA from the Korba coalfield.
4) Mahanadi Coal Railway Limited (MCRL) is developing the Angul-Balram
rail link of ~14.5 Km in Talcher coalfield under MCL command area in the State of Odisha
at an estimated cost of Rs 145 Cr. Work is in progress in the entire track length and is
anticipated to be commissioned by Jul'22. This shall enhance coal evacuation capacity
by ~ 15 MTPA from Talcher coalfield. Commissioning of these new BG railway lines alongwith
the already commissioned lines will increase the evacuation capacity to about 330 MTPA to
the railwa network by CIL.
7.4 Achievement in Acquisition and Possession of land:
In all the subsidiaries of Coal India, the major portion of land is
possessed which were acquired under Coal Bearing Areas (Acquisition & Development)
Act, 1957. During 2021-22, notification U/S-9 (1) has been issued for 1727.07 Ha and
notification U/S-11 (1) has been issued for 1364.11 Ha of land.
During 2021-22, 3731.05 Ha of land had been taken physical possession
in different Subsidiaries of Coal India.
7.5 System Improvement in Project Monitoring:
CIL is currently executing a variety of projects, ranging across
mining, washery, evacuation projects, Rail projects etc. To ensure smooth implementation
of such projects, CIL is continuously monitoring the ongoing progress through several
sophisticated project management mechanisms.
To capture the latest status of progress across all workstreams, CIL
has developed a Mine Data base Management System portal. This is an online portal where
all the information related to Statutory Clearances (EC and FC), Land, R&R,
Infrastructure, etc are maintained and updated on a periodic basis. The status contains
the original plan, key actions taken and hindrances for implementation. This crisp summary
for each workstream in each project enables faster decision making for the senior
management and the projects are being implemented in an expeditious manner. Apart from the
above mentioned online portal, PS (Project System) module of ERP implemented in CIL for
project monitori . These detailed schedules are updated on a regular basis. This schedule
monitoring process helps to identify the bottlenecks, analyse the interdependencies and
determining the critical action items which will expedite the project implementation. Such
project schedules are updated in the common server and is accessible to all relevant
project management personnel within CIL and can be updated frequently.
The actionable insights from these detailed project schedules are
mapped on Power BI Dashboards to enable expeditious decision making by the senior
management.
7.6 One Billion Coal Production Programme :
Based on the assessment of demand projection in the country and
consequent share of CIL, CIL has prepared a road map for 1 BT coal production by the year
2024-25 and beyond. The 1BT coal production plan was conceived on Best-Effort-Basis by the
subsidiaries, maximizing their production projections, indicating the associated enabling
conditions, e.g. green clearances, land & R&R, and other required development
activities like development of evacuation infrastructure.
However, 2nd wave of COVID-19 pandemic had triggered a trend of subdued
demand across all segments of the economy during the 1st half of FY22 due to which the
demand for coal had taken a beating initially during FY22. Deployment of resources by
Contractors especially in various infrastructure projects was affected resulting in slow
progress though it had recovered to a large extent in the subsequent quarters with
improving situation arising out of ease of restrictions resulting into greater
participation of all the stakeholders related to mining activities. In view of the above
scenario, the pace of implementation of 1 BT programme shall definitely be governed by
coal demand scenario, though CIL is all set for implementing the proposed programme on
Best-Effort basis for achieving the targets.
8. Conservation of Energy
Conservation of energy always remains a priority area and
CIL/Subsidiaries have extensively exercised various measures towards reduction in specific
energy consumption.
8.1 Energy Consumption scenario
Coal Production has increased by 4.4% in 2021-22 compared to 2020-21
and there is increase in OB removal by 21.36 MM3. Electricity consumption in CIL as a
whole in 2021-22 was 4571.4 million units compared to 4689.67 million units in 2020-21,
showing a decline of 2.52%. Total amount paid towards energy Bill in 2021-22 was Rs
3557.12 crores against Rs 3518.77 Crores in 2020-21, an increase of 1.1%.
In terms of total coal production, specific energy Consumption for CIL
as a whole, during 2021-22 was 7.34 kWh/T as against 7.86 kWh/T during 2020-21 with an
overall decrease of 6.61%.
In terms of composite production (in m3), Specific Energy Consumption
during 2021-22, for CIL as a whole, was 2.57 kWh/m3 vis-?-vis 2.72 kWh/m3 during 2020-21
with an overall decrease of 5.51%.
8.2 Electrical Energy Audits conducted in 2021-22
7 electrical energy audits were conducted by CMPDIL for different
subsidiaries of CIL in 2021-22 (CCL-4 nos., NCL-2 nos., BCCL-1 no.). Energy Audit has been
done for 04 mines in CCL during 2021-22 namely Ashoka OCP, KDH OCP, Bokaro OCP &
Govindpur UG. In NCL energy audit was undertaken in Jayant OCP & Kakri OCP. In BCCL it
was taken up in KOCP. In addition, MCL has done energy audit at Lakhanpur OCP. Estimated
saving from energy conservation measures in the above mines shall be around 132.72 lakh
kWh per year with an estimated reduction of Rs 977 lakhs per year in power bill.
During 2021-22 subsidiaries of CIL have placed order for LED light,
BLDC fans, Autotimers and 5 star ralad Air-conditioners to M/s. EESL and they are in the
process of supplying the same. M/s EESL had conducted Investment Grade Energy Audit of
motors alongwith pumpsets and submitted its recommendation which is being implemented.
8.3 Energy Conservation measures
Some of the salient measures taken by CIL/Subsidiaries for energy
conservation are as under: -
A. Energy Efficiency Measures in 2021-22:-a) Use of LED lights
– High wattage luminaries /conventional light fittings have been replaced with low
power consuming LEDs of appropriate wattage in majority of the places for quarry lighting,
UG mine lighting, street lighting, office and other work pla , townships etc., thereby
resulting in huge saving in electricity consumption. 1,10,315 LED lights (ECL-6517,
MCL-8272, WCL-14428, NCL-48481, BCCL-2700, SECL-15961, CCL-8956 & CIL HQ- 5000 nos.)
of different wattage rating have been installed during 2021-22. b) Energy Efficient ACs
– 953 energy efficient ACs have been replaced / installed in different subsidiaries
of CIL. c) Super Fans – 11922 high energy efficient super fans have been
installed in different subsidiaries of CIL. d) E-Vehicles – 5 e-vehicles have
been deployed on wet lease basis in CIL HQ e) Energy Efficient Water Heaters –
211 energy efficient water heaters have been installed at different places in CIL
subsidiaries f) Energy Efficient Motors – 36 existing old motors have been
replaced with energy efficient motors in different subsidiaries of CIL. g) Auto Timers
in Street Lights – 1062 auto timers have been installed at different places in
CIL subsidiaries.
B. Improvement in Power Factor Almost all the areas of the
subsidiary companies have maintained Power Factors as high as 95% or more during 2021-22
by installing capacitor banks of appropriate kVAR rating. During 2021-22, 23125 kVAR of
capacitor banks have bee procured and installed at subsidiaries. There are remarkable
improvement in power factor in some of the subsidiaries viz. ECL- Rs 14.34 crores, NCL- Rs
4.80 crores & SECL- Rs 3.57 crores. In other subsidiaries, the power factor
improvement rebate is adjusted in overall energy billing.
C. Installation of Ground & Roof Mounted Solar Power Plant in
different command areas of CIL:
Additional roof top solar capacity added during 2021-22 - 4.279 MWp
Work has been awarded for installation of 240 MW capacities of ground
mounted solar plants (at 4 places). Installation work is in progress.
8.4 Solar Energy generation:
CIL & Subsidiary Companies are pursuing use of renewable energy
sources. Subsidiary wise Solar energy generation in 2021-22 is as under:
| Subsidiary |
Total Installed Solar Capacity (KWp) upto
Mar, 22 |
Energy generated (in kWh) in 2021-22 |
| ECL |
1046 |
406056.50 |
| BCCL |
681 |
342788.80 |
| CCL |
1247.5 |
746234.00 |
| WCL |
1997 |
905427.86 |
| MCL |
3150 |
858114.00 |
| CIL HQ |
160.8 |
95900.00 |
| CMPDIL |
840 |
645678.00 |
| Total |
9542.3 |
4000199.16 |
The total solar energy generated during 2021-22 was 40 lakh units.
8.5 Anticipated benefit of Carbon Neutrality due to solar projects
& Energy Efficiency Measures :
During 2021-22 due to implementation of energy efficiency measures,
around 31.24 million units of electrical energy has been saved which shall result into
reduction of 27,410 Tonnes of CO2 per annum (approx.).
Similarly, during 2021-22 due to energy audit conducted in 8 mines of
CIL, 13.273 million units of electrical energy was saved which shall result into reduction
of CO2 of 10884 Tonnes/Year.
The solar energy generation has resulted into reduction of CO2 emission
by 3280 Tonnes/Year.
9. Capital Expenditure :
Overall Capital Expenditure during 2021-22 was Rs 15400.96 crores as
against Rs 13283.83 Crores in the previous year. Capital Expenditure incurred during
2021-22 was 104.88% of BE (102.18% in 2020-21). Subsidiary-wise details are given in Annexure
12.
10. A. Diversification into Chemicals & Fertilizers Sector:
1. Setting up of Natural Gas based Fertilizer plant of HURL at
Gorakhpur, Sindri and Barauni
Hindustan Urvarak & Rasayan Limited (HURL), is one of our
Joint Venture companies with promoter shareholding as follows: CIL - 29.67%, NTPC -
29.67%, IOCL - 29.67% & FCIL/HFCL (combined) - 10.99%. HURL has made monumental
strides to set up three natural-gas based 1.27 MTPA urea plants, one each at Gorakhpur
(U.P.), Sindri (Jharkhand) and Barauni (Bihar). These coveted projects of national
importance are being implemented on Lump-Sum Turn Key (LSTK) basis at an estimated
aggregate cost of around
Rs 25,000 crores. Gorakhpur unit has been commissioned and inaugurated
by Hon'ble Prime Minister on 07th December 2021. The Sindri and Barauni units are also
near completion and scheduled to be commissioned shortly. The commercial production of
urea from all three plants will commence in FY 2022-23.
2. Setting up of Coal based Fertilizer Plant of TFL at Talcher:
Talcher Fertilizers Limited (TFL) is another Joint Venture
company with promoter shareholding as follows: CIL - 31.85%, RCF -31.85%, GAIL - 31.85%
and FCIL - 4.45%. The JV was constituted to set up a Surface Coal Gasification (SCG) based
integrated 1.27 MTPA urea complex at Talcher using coal from nearby Talcher coalfields.
This is a landmark project which will lay the foundatio of coal gasification in the
country. In this project, high ash coal blended with pet-coke upto 25% shall be gasified
to produce synga which shall be converted into neem coated urea. The project is being
implemented on partial Lump Sum Turn Key (LSTK) basis at an estimated cost of Rs 13,277
crores, which will be financed by a debt-equity structure of 72:28. TFL has successfully
achieved the Financial Closure by obtaining Final Sanctions of the target debt amount with
SBI as Lead Banker. As of March 2022, the overall progress of the project stands at around
22%. The plant is expected to come into operation in FY 2024-25.
3. Surface Coal Gasification (SCG) Projects of Subsidiaries:
Pre-feasibility studies were completed to set up an integrated
Coal-to-Chemical (C2C) plants proposed to be located near the mi head. Three plants
utilizing low ash coal will be set up at subsidiaries namely ECL, SECL and WCL to produce
Methanol, Ammonia and Ammonium Nitrate respectively. The initiatives are under various
stages of implementation. Additionally, a pre-feasibility study with M/s BHEL has also
been initiated to explore setting up of a C2C plant, based on indigenously developed
technology utilizin high ash coal to produce Ammonium Nitrate.
B. Diversification into New Business Verticals:
1. Aluminium smelting:
CIL Board has approved submission of application to acquire prospecting
licence and mining leasehold of Bauxite mine(s) in Odisha through Allocation route of
MM(D&R) Act, 1957. Through M/s Deloitte, a pre-feasibility report was prepared for the
Integrated Greenfield Aluminum Project to be undertaken by CIL through MCL. Under single
window clearance system, CIL has received 'in-principle' approval from High Level
Clearance Authority (HLCA) for setting up of 1 MTPA refinery, 0.5 MTPA Aluminum Smelter
and 1400 MW CPP. Currently, on site due diligence for identification of potential sites
for smelter/CPP and Alumina Refinery-Bauxite Mine is in progress. Work order has been
issued by IPICOL on behalf of CIL for land and water assessment for the Integrated
Greenfield Aluminum Project at Orissa.
2 . Thermal Power Generation:
This is another strategic vertical where CIL is planning for
diversification. Through South Eastern Coalfields Limited (SECL), CIL envisages to partner
with MPPGCL to form a separate JV for setting up of proposed 1x660 MW expansion project at
Amarkantak Thermal Power Station (ATPS). Coal to the said plant will be supplied from SECL
by means of a fresh linkage (to be applied by JVC). 'In-principle' approval from MoC,
DIPAM & NITI Aayog have been obtained. As the next step, MoU between SECL and MPPGCL
will be executed.
11. Master Plan for dealing with fire, subsidence and rehabilitation
The Master Plan for dealing with fire, subsidence and rehabilitation in
the leasehold of Bharat Coking Coal Limited (BCCL) and Eastern Coalfields Limited (ECL)
was approved on 12th August 2009 by Govt. of India with an estimated investment of Rs
7112.11 Crore for Jharia Coalfields and Rs 2661.73 Crore for Raniganj Coalfields.
Implementation period of Master Plan have been delineated as 10 years for ECL & 12
years for BCCL. A High Powered Central Committee (HPCC) was constituted under the
Chairmanship of Secretary (Coal), MoC to review the activities of implementation of Master
Plan. Jharia Rehabilitation and Development Authority (JRDA) and Asansol Durg ur
Development Authority (ADDA) are the implementing agency for rehabilitation of non-BCCL
& non-ECL people under Master Plan.
A. Summarized Status of Implementations of Raniganj Master Plan (in the
leasehold of ECL):
There are 03 unstable locations under ECL which were already vacated
& families were shifted. As per the demographic survey report provided by ADDA, around
29,000 non-ECL families are required to be rehabilitated from unstable locations.
Construction of 12,976 houses out of approved 29,000 houses have taken up by ADDA for
shifting of non-ECL families. At present construction of 6,464 h have been completed and
6,512 houses are in different stages of construction.
B. Summarized Status of Implementations of Jharia Master Plan (In the
leasehold of BCCL):
BCCL has taken up construction of 15,852 houses for shifting of BCCL
families. Till date 7,714 houses have already been constructed and 4,185 families have
been shifted. Due to superannuation of BCCL employees, shifting of 7,852 BCCL families are
required at present. As per decision of BCCL Board, 8,000 houses are to be handed over to
JRDA for non BCCL families and same has been conveyed to JRDA Construction of 18,352
houses for non-BCCL families have been taken up by JRDA out of 54,159 houses as per the
approved Master Plan. Till date, construction of 6,352 houses have been completed and
2,676 families were shifted. Balance 12,000 houses are under different stages of
construction.
Regarding status of fire dealing, 34 sites have been identified as
fire-affected zone, as per survey report by National Remote Sensing Centre (NRSC) in 2018.
Further, as per NRSC interim study report (October 2020), fire have been identified in 27
sites only. At present, 15 fire sites are economically viable as assessed by CMPDIL,
wherein work have been awarded and implementation started.
The balance 12 fire sites are found to be economically unviable as
assessed by CMPDIL. In recent study by NRSC (August 2021), 10 fire sites have shown
decreasing trend/marginal indication of fire. To deal with this, surface blanketing is
being done by BCCL. Fire dealing at remaining 2 economically unviable sites are being
planned under viability gap funding.
C. Revision of Approved Master Plan
The time frame for implementation of the Raniganj Master Plan and
Jharia Master Plan have already been expired on Dt. 11.08.2019 & Dt. 11.08.2021
respectively. As per the directive of the 19th HPCC meeting dated 19.05.2019, a draft
comprehensive proposal incorporating alternative rehabilitation package, time, and cost
overrun have been prepared by ECL in consultation with CMPDI, RI-1 & ADDA, and BCCL in
consultation with CMPDI RI-II & JRDA.
As per the directive of the 21st HPCC meeting, revision of the both the
proposals are under finalization at Govt. Of Jharkhand (Mines & Geology) and ADDA /
Govt. of W.B. respectively.
Under the guidance of PMO, a committee under chairmanship of Secretary
(Coal) has been constituted on Dt. 25.08.2021 to review the Jharia Master Plan.
12 Environmental Management 12.1 Management System Standards:
CIL, HQ obtained re-certification of ISO 9001:2015, ISO 14001:2015 and
ISO 50001:2018 for Quality Management, Environment Management and Energy Management System
respectively from Bureau of Indian Standards (BIS) in 2019-20. As on 31st March 2022, ECL,
NCL and WCL (83 units) are certified for Integrated Management System (ISO 9001:2015, ISO
14001:2015 and ISO 45001:2018). CMPDI HQ and its seven RIs are certified for ISO
9001:2015. Moreover, CMPDIL HQ, Ranchi has been certified in ISO 37001:2016 (Anti-Bribery
Management System).
12.2 Pollution Control Measures and their Efficacy:
CIL is committed to protect environment by practicing and following
sustainable mining practices right from mine planning stage. Various pollution control
measures and initiatives are being taken up concurrently with mining operations, for
maintaining acceptable / permissible limits of major physical and chemical attributes of
environment viz. air, water, hydrogeology, ground vibrations, noise, land, etc
A) Air Pollution and its Control Measures:
To control and reduce dust generation during drilling, blasting,
loading and coal transportation, CIL has taken up various initiatives enumerated in
MoEF&CC approved Environmental Management Plan (EMP) of projects. The EMP is prepared
factoring the impact on existing environment and forest due to coal mining undertaken
after conducting an Environment Impact Assessment (EIA) study of each project. Mist
spraying systems, mobile water sprinklers and automatic sprinklers have been provided to
mitigate air pollution & its control measures
Some of the important initiatives taken by CIL are as follows: a)
Transportation of coal by conveyors, covered trucks & loading into railway rakes
through Silo. b) Blacktopping & repairing of coal transportation roads and
strengthening of haul roads. c) Development of wind break and vertical greenery system. d)
Deployment of additional Surface Miners and Continuous Miners in opencast & U/G mine
respectively for blasting free coal extra action. e) Implementation of First Mile
Connectivity to reduce transport of coal by road.
B) Mine Water Management:
Mine Discharge Treatment Plants (MDTP) are installed in mines for
treatment of discharged mine water on the surface for the second phase treatment. Treated
mine water is then used partly for dust suppression, fire-fighting, plantation, washing
etc. As per the need of the local community, treated mine water is supplied to the nearby
villages for drinking & irrigation purposes. In order to assess the impact of mining
activities on ground water, monitoring of ground water levels is being carried out in and
around of the mine lease hold area. For ground water recharge within mine premises and
nearby villages, initiatives like rainwater harvesting, digging of ponds / development of
lagoons, de-silting of existing ponds / tanks etc. have been taken. Regular monitoring of
mine, workshop and domestic effluent is carried out as per rule and desired actions are
being taken. Reports of the same are regularly submitted to SPCBs and MoEF & CC. In
2021-22, 80.05 % discharged mined water utilized for internal & community use and
remaining 19.95 % is retained for future use and ground water recharging.
C) Noise Pollution Control Measure:
For control of noise pollution, various measures like proper
maintenance of equipment, green belt development around the mine and residential area,
blasting in day time and use of ear muff / ear plugs at noisy areas are adopted.
D) Land Reclamation:
Reclamation of the mined out areas and external OB dumps are major
environmental mitigatory activities taken up by CIL. Reclamation of mined out areas are
being done as per the Environmental Management Plan (EMP) and Mine Closure Plan (MCP)
which are approved by MoEF&CC. Top soil is preserved, stored and used in plantation
areas in the opencast mines. Concurrent reclamation and rehabilitation of mined out areas
are taken up for gainful land use. After technical reclamation is completed, plantation is
carried out which is termed as biological reclamation.
Eco-restoration: For effective Bio-reclamation of disturbed land,
scientific studies are carried out to select suitable species of plants for afforestation
on three tier plantation concept. Forest Research Institute (FRI) has been engaged by CIL
for sharing their expertise in the field of eco-restoration in the reclaimed areas. Many
Eco-restoration sites have been developed in subsidiary companies of CIL with technical
collaboration of FRI.
Eco-park in Reclaimed land: Eco Parks have been developed in many of
the mined out areas and command areas of CIL like Jhanjra Eco-park ECL, Parasnath Udyaan
Eco-Park BCCL, Bishrampur Tourism Site SECL, Nandan Kanan Eco-Park NCL, Saoner Park WCL,
Kayakalp Vatika CCL, Ananta Medicinal garden MCL, etc. CIL has established 27 Eco-parks
& Mine Tourism & eco-restoration sites on date.
Monitoring of Reclamation: The land reclamation and restoration
operations are being monitored by Satellite Surveillance. 76 major Opencast Projects
(OCPs) producing more than 5 Mm? (Coal + OB) per annum were monitored in 2021-22. The
remaining OCPs producing less than 5 Mm? (Coal + OB) per annum, are being monitored once
in every 3rd year. The study of 76 major OCPs revealed that during 2021-22, 62.53% of the
excavated area was reclaimed and limited active mining area to 37.47%. In addition, CIL is
conducting vegetation cover mapping through satellite surveillance every 3 years.
Mine Closure Plan (MCP): MCP is an integral part of the Project Report
prepared by CMPDIL for Coal mines of CIL. This progressi mine closure plan also forms a
part of EIA / EMP prepared and got approved by MOEF&CC as a part of Environmental
Clearance. In FY2021-22, Rs 109.93 Crore has been reimbursed from the Escrow fund to the
concerned Project Proponents for mine closure activities.
E) Strive for continual improvement in environmental performance.
The job of Developing approach and methodology for index rating of
environmental conditions and performance evaluation as per the EC conditions in 35 CIL
(> 5Mm3 Coal + OB) Mines, was completed by ICFRE and also was approved by CIL board in
December 2020. Accordingly, subsidiaries were advised for submission of required
information/documents related to EA-EPIR of respective total 35 mines. ICFRE has already
completed field visit of 06 mines of MCL & 03 mines NCL till March 2022 and draft
reports of those mines are under preparation. Tentative Completion schedule of field visit
& submission of draft report of rest mines is December 2022.
13. ERP, IT Intiatives, Electronic and Communication in CIL
ERP
1. Go-Live of SAP ERP in Phase I at CIL, MCL and WCL commenced from 1st
April' 2021.
2. Go-Live of SAP ERP in Phase II Subsidiaries of CIL (ECL, BCCL, CCL,
CMPDI, SECL, and NCL) commenced from August 2021 and subsequently it was flagged off by
Shri Pralhad Joshi, Honourable Minister of Parliamentary Affairs, and Coal & Mines on
23rd February' 2022 at New Delhi.
3. The complete Project is currently in final stages of Stabilization
4. The time line for SAP ERP implementation to Go-Live in Coal India
and its subsidiaries was envisaged around 51 months. The ERP team consisting of members
from CIL and its subsidiaries along with the System Integrator M/s Tech Mahindra for Phase
I, M/s Accenture for Phase II worked diligently and have been able to prepone the
implementation of SAP ERP Go-Live by approx. 14.5 months.
5. Implementation of ERP across Coal India will give a boost to GoI
endeavor towards Digital India.
IT Initiatives
1. CIL is undertaking POC for digitization of small and medium sized
Open Cast Mines for enabling automatic reporting of coal production and HEMM performance.
2. CIL has taken steps for digitalization of seven big Open Cast mines
through M/s Accenture.
3. CIL has launched web/mobile Apps like
Digital Life Certificate through Jeevan Pramaan Application for CPRMSE
Beneficiaries:
CIL has on boarded on the "Jeevan Pramaan" Portal of
Government of India. This facility is available to retired employees and their spouses. It
facilitates submitting life certificate digitally from anywhere without personally
visiting CIL and all subsidiaries.
CIL Executives Defined Contribution Pension Scheme-2007(NPS):
This portal is created for retired executives. Claim settlement of
retired executives in respect to CIL Executives Defined Contribution Pension
Scheme-2007(NPS) crossed 10000 mark.
Samvaad Portal :
A portal is used to resolve grievances of current employees,
ex-employees, vendors and consumers
4. CIL Corporate Web-site is being augmented with user friendly UI/UX.
5. Existing operational IT initiatives of Coal India include:
Procurement of Goods, Works and Services in Coal India and its
subsidiary companies is being done through E-procurement mode whereas tenders above Rs 1
Crore value are finalized through e-Tender mode with a provision of reverse auction to
ensure greater transparency and better cost effectiveness during the tender procedures in
goods, works and services.
E-auction of coal is operational through service providers of CIL.
Performance Evaluation, Vigilance Information and Annual Property
Return of executives in Coal India is carried out through web enabled systems. Web
Applications for Production Information System, Safety Information System, CILCSR, HRMS,
Document Management System are also in operation.
In order to improve coal dispatch, electronic weighbridges are
connected with Central Servers of respective subsidiaries. CIL is exploring latest IT
technologies like AI/ML/Data Analytics in critical areas of operation in collaboration
with reputed IT organizations for enhancement of productivity.
Electronics & Telecommunication
1. Initiation of implementation of Secondary MPLS-VPN
connectivity for ERP usage at CIL HQ, CIL Delhi Office with DC-DRC: As a part of DPR
for ERP implementation, Secondary MPLS-VPN connectivity has been entrusted through M/s.
BSNL for CIL Kolkata, CIL Delhi Office, DC & DRC.
2. Strengthening the adoption process towards implementation of
various IT Initiatives across Subsidiaries of CIL: Leveraging technology through
various IT initiatives viz GPS Based Vehicle Tracking Systems with geo fencing, RFID Based
Boom barriers Systems, CCTV based monitoring system at vulnerable locations viz
weighbridge, Railway-Sidings, Coal-Heaps etc. are in place at CIL Subsidiaries. These IT
Initiatives status is being monitored from CIL by providing Standard Operating Procedures
(SOPs) for their operation and strict adherence by CIL Subsidiaries.
3. IT Infrastructure at CIL Office Complex: IT
Infrastructure encompassing Voice, Data & Video communication at CIL Office complex
are maintained and monitored to cater to the requirement for smooth access to different IT
services & ERP.
4. In-house Voice and Data communication systems: In order
to meet the ever increasing business processes, state-of-art IP based Electronic Private
Automatic Branch Exchange (IP- PBX) with support of convergent technology for Voice and
Data, Radio communication Syste and Underground (UG) communication systems at different
locations of Coal India and its subsidiary companies are deployed and operational for
timely decision making process.
5. Integration of cloud based VC platform to cope up with
multiple concurrent Video Conferencing requirement: To cope up with multiple VC
requirement during pandemic period, the Web based VC on different platforms with
integration of endpoints was facilitated for VC with different Dept. of CIL/ Subsidiaries/
Ministries/ outside agencies and stakeholders. CIL had successfully organized scores of
webinar, training sessions, workshops etc. during 2021-22 on virtual platform.
14. Mines Safety
14.1: Statutory Frame-work for safety in coal mines:
Coal mining world over, is highly regulated industry due to presence of
inherent, operational and occupational hazards and associated risks. Coal Mine Safety
Legislation in India is one of the most comprehensive and pervasive statutory framework
for ensuring occupational health and safety (OHS). In India, the operations in coal mines
are regulated by the Mines Act- 1952, Mines Rules -1955, Coal M nes Regulations-2017 and
several other statutes framed there under. Directorate-General of Mines Safety (DGMS)
under the Union Ministry of Labor & Employment (MOL&E) administers compliance of
these statutes. Other major Acts/Rules are applicable in coal mines are the Electricity
Act- 2003, Central Electricity Authority (measures relating to safety & supply)
Regulations - 2010, Indian Explosive Act-1884 & Explosive Rules-2008, Indian Boiler
Act-1923, the Employee's Compensation Act- 1932 (Principal Act) and the Factories Act -
1948 Chapter -III & IV and several other statutes framed thereunder.
14.2: Implementing Safety Policy of CIL:
Safety is always conferred with prime importance in the operations of
CIL as embodied in the "Mission Statement" of CIL. CIL ha formulated a
well-defined Safety Policy for ensuring safety in mines. To implement CIL Safety Policy,
the following are ensured
1. Scientific design and planning of all mines.
2. Deployment of trained and skilled manpower for ensuring safety in
all mining operations.
3. Provision for adequate funds and infrastructures for mine safety.
4. Provision for adequate supervision through competent supervisory
staffs and mine officials.
5. Multi-disciplinary Internal Safety Organization (ISO) to monitor
mine safety.
6. Continuous and sustained improvement in technological inputs for
mining operation.
7. R&D activities through collaboration with Scientific and
Educational Institutes and CMPDI.
8. Ensuring workers' participation in every forum for monitoring safety
in mines.
9. Regular health check-up of employees and provide medical
infrastructure.
14.3: Major functions of Corporate ISO
1. Inspection of mines to review safety status.
2. Fact finding enquiry into fatal accidents as well as major
incidences.
3. Maintenance of accidents / major incidents database and Analysis of
mine Accidents.
4. Monitoring Mine Safety Audit.
5. Imparting specialized training by SIMTARS accredited trainers.
6. Issuance of internal Technical Circulars / Guidelines / Advisory
related to safety.
7. Monitoring safety related R&D activities in CIL.
8. Organizing meeting of CIL Safety Board.
9. Monitoring mine rescue preparedness at different mine rescue
establishments.
10. Publication of Safety Bulletin.
11. Liasioning with various agencies on the matter of mine safety. 12.
Monitoring of CIL Safety Information System (CSIS) database.
13. Response to parliamentary matters and queries under the RTI Act-
2005 w.r.t mine safety.
14 .4: Mine Accident Statistics
Analysis of Mine Accident Statistics in CIL - Accident
statistics is the relative indicator for safety status in mines. Over the years, the
safety performance of CIL has improved significantly. Both Fatalities & serious
Injuries figures for the year 2021 had reduced to the lowest since inception of Coal India
Limited in 1975. Reducing trend in mine accidents can be attributed to the following facto
Commitment and synergetic cooperation amongst all the stakeholders.
Use of state-of-the-art technology in the field of Mining Methods and
Safety Monitoring.
Continuous improvement in knowledge, skill and responsiveness of
workforce.
Constant vigil, round-the-clock supervision and supports from various
agencies.
14.5: Measures for improvement in Mine Safety in 2021
CIL has vigorously pursued several measures in the year 2021, along
with the on-going safety related initiatives, apart from compliance of statutory
requirements for enhancing safety standard in mines, are given below:
Safety Audit of mines conducted through multi-disciplinary Inter Area
Safety Audit teams. Further, Check Audit for 10% of mines of CIL also conducted by Inter
Subsidiary multidisciplinary team to reassess the audit conducted by the auditors.
Tool box safety talk has been introduced for effective assessment of
safety related hazards before start of operation.
Personal Safety Counselling & Employee Assistant Program has been
initiated for sensitization about safety.
Controls measures of Safety Management Plans (SMPs) are being complied.
Controls measures of Principal Hazards Management Plans (PHMPs) are
being complied.
All mining operations are being performed as per Standard Operating
Procedures (SOPs).
Scientific studies of OB dumps & Benches as well as for SCAMP in
underground mines.
Special Safety drives conducted to improve safety and enhance safety
awareness.
Regular co-ordination meeting with ISOs for assessing the safety status
of mines.
57th CIL Safety Board was held for assessing safety status of all the
mines.
20th meeting of National Dust Prevention Committee (NDPC) was held for
assessing the status of dust suppression in all mines.
Mist type fixed as well as trucks mounted water cannons have been
introduced in OC mines.
Preparation of 104 short video clips or Animation films on various Mine
Safety Procedures, Dos and Don'ts related to operation and Mine Accidents were
prepared and shared with 2.23 lakhs employees including contractual employees and also
uploaded in CIL website for wider circulation. The said video clips and Animation films
are also displayed at conspicuous places like pit top m nes, contractor establishment,
VTCS etc.
Concept of Suraksha Mitra Mandali/Circle has been introduced in this
year to inculcate safety culture amongst employees.
Micro and macro level plan prepared for monsoon and implemented.
Apart from the above specific actions, the following are on-going
measures for improving safety standards:
Emphasis on use of the state-of-the art mining technology.
Adoption of best practices for Strata and Gas Management
Strengthening Water Danger Management.
Training on Mine Safety & Skill Up gradation.
Emphasis on inspection of mines.
15. Mine Emergency Response System:
15.1: Mine Emergency Response and Evacuation Plan (EREP)
Procedures for immediate notification to all persons affected by the
emergency. Procedures for safe, orderly and immediate withdrawal of persons from danger.
Procedures for rescue of persons incapacitated or trapped due to accident. Procedures for
providing first aid, transportation, medical treatment to injured.
Special training to respond to critical operations and mine
emergencies. Mock Rehearsals for examining the efficacy of Plan.
Demarcating Emergency Escape Routes in belowground and training on
evacuation. Flow Chart prepared for transmission of information regarding crisis /
disaster.
15 .2: Mine Rescue Services in CIL:
CIL is maintaining a well established Rescue Organization at strategic
locations spreading across different Subsidiaries to cater to the emergencies on 24X7
basis.
16. Human Resource Development
Coal India Limited is gearing up to meet its ambitious target of coal
production. Human Resource is a major component for achieving this goal by development of
its existing human resource and looking ahead with a clear perspective with reference to
technological advances and growth of manpower to fulfil the growing demands of production
along with diversification into aligned and non-aligned areas.
During 2021-22, various training programs were organized at subsidiary
headquarters, training centres, vocational training centre and also at CIL's own in-house
training facility Indian Institute of Coal Management Ranchi. This training programs were
organized after accessing the training needs in the respective category of employees
within the Subsidiary.
Employees were given trainings for skill development and acquisition of
knowledge and skill in existing and future technology as well as safety. In addition to
in-house training, employees were trained at reputed training institutes, mostly in online
mode, within the country in their respective fields of operations.
16.1 Training and Development of Human Resource:
During 2021-22, 61268 employees have been trained in house, out of this
13292 were executives and 47976 were non-executives. A total of 3240 employees have been
trained outbound, out of this 3101 were executives and 139 were non-executives. During the
FY 21-22 more than 526755 training man-days were achieved for these employees including
executives and non-executives (excluding contract workers). 34427 contract workers were
trained in the financial year 2021-22.
Due to pandemic restrictions, 3 executives were sent for foreign
trainings in this Financial Year.
16.2 Engagement of Apprentices:
In CIL and its subsidiaries, 8295 Apprentices were engaged through NATS
and NAPS portals which constituted around 2.55 % of total manpower including contractor
workers.
16.3 Special Initiatives:
Sponsorship Scheme for 1 yr Executive MBA in IIMs has been made
operational. Executives have been sponsored in this scheme. MoU has been signed with
premier management institutes for organizing training programs at IIM-Calcutta(E5-E8) for
240 executiv , IIM-Lucknow(E4-E5) for 250 executives and IIM-Indore(E4-E6) for 500
executives Batches have already commenced MDP for Senior Executives and special program
for women executives was done by IIM, Sambalpur and arranged by HRD, MCL. 59 executives
have been trained in association with IIM, Sambalpur.
89 executives of E8 & E7 grades have been trained by Franklin Covey
at CCL
17. Recruitment
Coal India Limited (CIL) has inducted Management Trainees, Medical
Executives and other Executives at lateral level through direct recruitment to fill up the
vacancy arising out of retirement, resignation etc. Departmental promotion / selection was
also made in different disciplines by promoting Non-Executive employees to Executive
cadre. The details of Executive manpower influx in CIL for F.Y. 2021-22 are as follows:
1. 1286 Management Trainees (MTs) were selected against MT-2019 Open
Recruitment Advt. No. 01/2019 wherein 978 MTs have joined at different Subsidiaries.
Documents Verification (DV) & Initial Medical Examination (IME) formalities of 103 MTs
selected in 3rd Phase is currently underway.
2. Against Recruitment Advt. No. 03/2021, 581 MTs have been selected in
06 technical disciplines on the basis of GATE-2021 score , list of which has been
published on CIL website.
3. Against CIL's Policy for Decentralized Recruitment of Medical
Executives through Subsidiary / CIL, 136 Medical Executives i.e. 32 Medical Specialists
and 104 Sr. Medical Officer (GDMO) have joined till date. Further vacancies in lieu of
non-joining in 1st Phase, are being filled up.
4. Regarding career progression of departmental candidates: a) 275
departmental candidates have been promoted / selected from Non-Executive to Executive
cadre in Survey discipline and posted at different Subsidiaries. b) 330 departmental
candidates have been promoted / selected from Non-Executive to Executive cadre in 10
disciplines and posted at different Subsidiaries.
5. 11 Company Secretaries (CS) were appointed from E3 to E8 grades
against Open Rect. Advt. No. 02/2021. Except one, all others have been posted at
Subsidiaries and their joining process is currently underway.
6. 01 Executive Director (Indian Institute of Coal Management) on Fixed
Tenure Contract Basis has been appointed.
18. Manpower
18.1 The total manpower of the Company including its subsidiaries
as on 01.04.2022 stood at 2,48,550 against 2,59,016 as 01.04.2021. A
detailed Subsidiary wise position of Manpower is given in Annexure 15 18.2 The
presidential directives with respect to manpower for Scheduled caste / Scheduled
Tribes/OBC have been implemented in all th subsidiaries/units of Coal India Limited.
The representation of SC/ST employees in total manpower of CIL and its
Subsidiary Companies as on 01.01.2020, 01.01.2021 and 01.01.2022 is given below: -
| As on |
Total Manpower |
Scheduled Caste |
Scheduled Tribe |
OBC |
|
|
Nos. |
Percentage |
Nos. |
Percentage |
Nos. |
Percentage |
| 01.01.2020 |
2,76,092 |
54,854 |
19.87 |
43,262 |
15.67 |
64,431 |
23.34 |
| 01.01.2021 |
2,62,292 |
52,000 |
19.83 |
40,063 |
15.27 |
59,937 |
22.85 |
| 01.01.2022 |
2,51,320 |
48,493 |
19.30 |
36,398 |
14.48 |
60,172 |
23.94 |
19. Industrial Relations And Employees' Participation In Management
The Industrial Relations scenario in CIL & its subsidiaries during
the financial year remained cordial. Joint Consultative Committees and other Bipartite
Committees at Unit/Area levels and Subsidiary (HQ) levels continued to function in
harmony. Meetings of Bilateral Committees were held at regular intervals at CIL to address
IR, Welfare, Productivity/Production, Safety etc. issues. Except for a few minor issues of
local nature at a few subsidiaries, there has been no major IR problem in the company.
20. Employees' Welfare and Social Security Schemes
Coal India Limited strives to provide the best facilities for Welfare
of its employees and their families. The facilities that are extended to all sections of
the Society like- Scheduled caste, Scheduled Tribe, backward classes, minorities as well
as other marginalised segments of the society, without any discrimination, are given
below: -
20.1 Housing facilities
In CIL and its subsidiaries, all eligible employees are provided
company quarters subject to availability and Company rules. Regular repair and maintenance
including thorough repair of these housings are undertaken regularly to provide decent
housing to employees.
20.2 Water supply
To provide clean drinking water to the employees and their families,
many water supply schemes have been taken up. Supply of water is done after proper
treatment and several RO plants/ Pressure filter plants are also existing in coalfields
that cater not just to our employees but also to the population in the neighborhood.
During summer months, in areas facing water scarcity, water is also supplied through
tanker
20.3 Educational Facilities
The subsidiary companies of CIL have been providing financial
assistance and infrastructure facilities to schools operating in Mines areas like DAV,
Kendriya Vidyalaya, Delhi Public School etc. and other Educational Institutions run by the
State Government to provide quality education to the employees' children. In addition,
financial assistance and infrastructure facilities are also provided to certain privately
managed schools and other educational institutions by some of the subsidiary coal
companies functioning in and around coalfield areas. These schools cater to the
requirement of the entire population in coalfield areas.
20.3.1 Coal India Scholarship Scheme:
For employees' children, two types of Scholarships, namely Merit and
General Scholarship, are being provided every year under prescribed terms and conditions.
a) In Merit Scholarship, Students securing 1st to 20th position in Madhyamik/ H.S. or any
State Board or securing 95% and above marks in ICSE, CBSE / ISC Exam (Class-X & XII)
are given scholarship per month.
General Scholarship is provided to Students studying Class-V onwards up
to Graduation /Post- graduation level in any discipline subject to prescribed percentage
of marks. b) Cash Award and certificate of appreciation: -Every year, Cash Award of Rs
5000/- and Rs 7000/- respectively are provided to the Meritorious wards of CIL employees
who secure 90% or above Marks in aggregate in 10th and 12th standard Board level
examination. c) Considering the high cost of technical and medical education in the
country, Coal India Limited is providing financial assistance towards meeting the cost of
education of the dependent children of Wage Board Employees to the extent of tuition fees
and Hoste charges for pursuing studies of Engineering / Medical in IITs, NITs, Govt. Engg
and Govt. Medical college.
20 .4 Medical Facilities
Coal India Limited and its subsidiaries are extending medical
facilities to the employees and their families through various medical establishments from
the dispensary level to the central and Apex Hospitals in different parts of the
coalfields. For specialized treatment, where the expertise/ facilities is not available,
they are also referred for treatment outside the empaneled hospital.
For transporting the patient to hospitals, ambulances with latest
technology and life support systems are provided at central places in entire coalfields.
In addition, special emphasis has also been given on Occupational
Health, HIV /AIDS awareness programme for the employees and their families.
Medical facilities of OPD and indoor treatment in Company's hospitals/
dispensaries are also extended to the workers engaged by contractors During the Covid
pandemic, the medical fraternity and the staff have provided commendable support to the
population of coalfield areas.
20.5 Statutory Welfare Facilities
In accordance with the provision of the Mines Act 1952 and Rules and
Regulations framed there-under, subsidiaries of Coal India Limited are maintaining various
statutory welfare facilities such as Canteen, Rest Shelters etc. These facilities are for
use by the employees of the company as well as contractor's labor alike.
20.6 Non-Statutory Welfare Measures
20.6.1 Co-operative Stores and Credit Societies
In order to supply essential commodities and consumer goods at a
cheaper rate in the collieries, Central Co-operative and Primary Co-operative Stores are
functioning in the Coalfield Areas of CIL.
20.6.2 Banking Facilities and Post Offices
The Management of Coal companies are providing infrastructure
facilities to the various Nationalized Banks for opening their Branches and Extension
Counters in the Coalfields for the benefit of their workers. Similarly, there have been
efforts to bring the post offices to the proximity of workers by encouraging opening of
Account facilities closer to residential colonies
20.6.3 Sport Facilities
There are recreational and sports facilities near residential colonies
of workers to ensure the wellbeing and good health of the workers and their families For
the purpose of promotion of Sports and Culture, Coal India has an approved Sports Policy
administered through Coal India Sports Promotion Association (CISPA), a body registered
under the West Bengal Society's Registration Act; and this association supports Sports and
Culture by way of providing sponsorship/ financial assistance in the coalfield areas.
CISPA is also lending support to various subsidiaries in creation of sports infrastructure
for the benefit of larger local population
20.7 Empowerment of Women
There are 19610 female employees working in CIL and its
Subsidiary companies. In order to ensure their health, safety and welfare, the coal
companies ensure compliance to all statutory requirements, enhanced maternity leave, child
care leave, cr?che etc Also, Forum of Women in Public Sector (WIPS) under the
aegis of SCOPE (Standing Conference of Public Enterprises) is operational in all
coal companies/ CIL for empowering them and provide a platform for networking.
In terms of the provisions of the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act 2013, Coal India Limited has an
Internal Complaints Committee.
20.8 CIL Welfare Board Meeting
A bipartite forum comprising of representatives from trade unions and
management constitutes the Welfare Board. This Welfare Board holds its meetings at unit/
subsidiary and headquarter level regularly. The welfare Board takes important decisions
regarding the welfare measures for employees, housing facilities upliftment, drinking
water facilities and all other facilities. The Welfare Board also monitors the quality of
facilities.
21. Recommendations made by the Committee on Papers Laid on the Table
(Rajya Sabha) in its 150th Report
A. Vigilance Cases during the year 2021-22
| Particulars |
No. of cases |
| Opening cases |
4 |
| Received |
628 |
| Total |
632 |
| Disposed off |
625 |
| Closing cases |
7 |
B. Pending CA&AG Paras (CIL H.Q.):-
|
PART II A |
|
|
PART II B |
|
|
TOTAL |
|
| No of Paras received |
No of Paras replied |
Remarks received |
No of Paras replied |
No of Paras received |
Remarks replied |
No of Paras |
No of Paras replied |
Remarks |
| 15 |
15 |
Under scrutiny of CAG |
19 |
19 |
Under scrutiny of CAG |
34 |
34 |
Under scrutiny of CAG |
Replies to all the CAG Paras have been given and the matter is under
scrutiny of CAG. The matter is being regularly followed up with the office of C&AG.
C RTI Matters:
Extracts of RTI Annual Return for the Financial Year 2021 - 22
| Particulars |
Requests Received (including cases
transferred to other Public Authority) |
No. of cases transferred |
Decisions where requests/appeals rejected |
Decisions where requests /appeal accepted
& disposed |
| Nos. |
1827 |
333 |
183 |
1311 |
22. Tree Plantation / Afforestation
Plantation and Green belt are developed through extensive tree
plantation programme every year by the Subsidiaries of CIL. Avenue plantation, plantation
on OB dumps, plantation in and around mines, residential colonies, and available
government land are undertaken in the existing as well as the new projects. The
subsidiaries of CIL have planted around 30.42 lakh saplings during 2021-22 in an area
covering more than 1,468 Ha. (Around 1,180 Ha inside mine lease & over 288 Ha outside
mine lease) with an increase of about 70 % over previous year in terms of area of
plantation.
23. Progressive Use of Hindi
Coal India Limited is committed to implement the provisions of Official
Languages Act, Rules and Regulations and all activities are held regularly in each
quarter. The activities in the year include: 04 workshops were organised quarterly to
enable use of Hindi in official jobs.
Training of employees on E-tools, Hindi noting and drafting used in
regular official works and provisions regarding Official Languages Act.
Publication of diglot version of comments & Post name, Rajbhasha
Sandharbhika, 2 editions of Hindi Magazine namely "Koyla Darpan" from CIL HQs.
The Committee of Parliament on official language reviewed the progress
made in the use of Hindi for the official purposes in CIL (HQs), Kolkata on 28.10.2021.
Observation of 'Hindi Fortnight' in all offices of CIL and Subsidiaries
in the month of September, 2021 by conducting various events and competitions.
A seminar was organized during Hindi Fortnight.
Hindi Praveen classes were conducted under the Hindi Teaching Scheme of
the Government of India for the purpose of training the employees in Hindi.
MHA, GoI handed over the chairmanship of TOLIC (PSUs), Kolkata to Coal
India Ltd. (HQs), Kolkata Vide DO. letter no. 12024/05/ 2021/R.B.(Impl.2), dated
18.01.2022. Total 58 PSUs located in Kolkata are its members.
An introductory meeting of TOLIC (PSUs), Kolkata was organized on
25.03.2022 at Kolkata under the chairmanship of Director (P&IR), CIL.
Three departments of Coal India Ltd. were conferred with Rajbhasha
Shield in Year 2021-22 for the best practices in Official Language implementation in the
year 2020-21.
In order to promote the use of Hindi in official work following schemes
have been implemented:
(i) "CIL Hindi Book Writing Incentive Scheme"
(ii) "Incentive Scheme for Correspondence / Drafting and doing
other official work in Hindi" (iii) CIL Hindi book writing scheme (iv) CIL Rajbhasha
Chal Shild Yojna 24. Vigilance Division
Coal India Ltd. has a well-structured Vigilance Division at Corporate
HQ-Kolkata, headed by a Chief Vigilance Officer of the rank of Joint Secretary to Govt. of
India, assisted by a multi-disciplinary team of vigilance officers. Similarly, all of its
eight subsidiaries have their independent Vigilance Units, each headed by CVOs. CVO, CIL,
at the Corporate Office, acts as a coordinating authority between Vigilance Departments of
subsidiaries, Ministry of Coal and the Central Vigilance Commission. CVO, CIL at corporate
level deals with complaints, investigations and systemic improvements on issues having
multi-subsidiary and often company-wide ramifications.
During the last three years, Vigilance Division of CIL, as a part of
the preventive vigilance function, studied several processes of CIL having tremendous
operational & financial implications and developed specific system improvement
suggestions for the management, after thorough data analysis using modern data analytic
tools and sometimes accompanied by field experiments. Some of these studies, attempted for
the first time ever, which crystalized into actionable and implementable suggestions, the
implementation of which ensued immense benefits for the company, are briefly summarized
below:
"Mission Productivity Maximization":
Dumpers procured by CIL constitute the major portion of Capex
investment running into thousands of Crores of Rupees. After stud and consultations with
all equipment manufacturers, Vigilance Department detected that most of the dumpers
deployed by CIL in mines are having an on-board computer system named Pay Load Monitoring
System (PLMS), that has elaborate provision for generating critical information about
number of trips, payload weight, time taken and distance covered in each trip, diesel
consumption etc.. If the data is downloaded and analysed on regular basis, it can give
great insights into the operational effectiveness including loading pattern, cycle times
and fuel consumption per trip. This has great utility in productivity improvement and
better operational control. Although such system was available for more than eight years,
it had not been put into effective utilization for improving the productivity and
detection of vulnerabilities in the coal production chain.
On advice from Vigilance, an elaborate interface has been developed by
the CIL management to capture all dumper related data fr all subsidiaries and an analytic
portal of Vigilance is currently analyzing the same and has detected many crucial aspects
for rectification and betterment at subsidiary level.
Analysis of Transit Losses:
Most of the coal (80%) produced in India is dispatched to the domestic
coal-based power plants through Rail. In the past there has been several grievances from
the consumers regarding short-receipt of coal in transit to their power plants. In-depth
study was entrusted to Vigilance to verify the same. Such data-driven study had not been
undertaken in the past. The study not only compared the coal dispatched by CIL to randomly
selected domestic power plants with the receipt of coal reported by them to Central
Electricity Authority, but also did such comparison for the entire domestic coal supply
sector of India. This data driven dispatch vs. receipt study conclusively established that
the loss during transit between dispatch and receipt points is extremely minimal and
within the expected tolerance limit of the weight measuring instruments.
Rapid Loading Systems:
The rapid loading system with pre-weight bins operational at various
subsidiary sidings have been studied and systemic improvement suggestion made for timely
certification by Railways for using the data of RLS-PWBs for generating RRs. This measure
will reduc under loading of Railway wagons to a great extent.
Mission- Quality Management:
In the last financial year, CIL Vigilance Division embarked upon this
preventive vigilance exercise to study the entire quality determination process chain of
CIL and its subsidiary coal companies aided by modern data analytic tools. CVO, CIL
examined consignment-quality-test results of more than 1.2 million samples, spanning over
four years and representing a quantity of 1625 Million Tonnes of coal. Insights gained
from this study altered certain fundamental perceptions about coal quality, quality as
urance, quality control and customer satisfaction. Very elaborate systemic suggestions
have been presented by CVO, CIL through multiple Advisories, which were discussed at the
highest level. Effective implementation of these suggestions has secured rich dividends to
the company in the form of quality bonus.
Expediting of TPA Test results & Referee Results:
The intensive study on referee results of coal samples has revealed
excessive delay in obtaining referee results, causes for which were studied and suggested
measures for timely furnishing of referee results so that the sale transactions can be
brought to timely conclusion. It was recommended that CIL might explore a mechanism to
achieve TPA test result availability with in a period of 5 days by incorporating mandatory
time clause in the TPA contracts. This will help in reducing the inordinate delay and
multiple billi s.
Mission- Underloading Minimization:
The entire process of Rail loading and incurring of underloading
charges was studied in great depth by Vigilance Division, in view of the inherent
complexities involved, and suggested various systemic improvement suggestions. The
implementation of these suggestions, by the management, successfully curbed the rising
trend of underloading and resulted in reducing the underloading charges drastically.
Complaint Handling: During the year 2021-22 CIL Vigilance Division
received 628 complaints including those forwarded by MoC, CBI and CVC out of which 625
have been disposed of during the year.
Punitive Vigilance: The Vigilance Units of CIL and its subsidiaries
undertook numerous intensive examinations, surprise checks and investigations leading to
punitive actions on 217 officials during the year.
Vigilance Awareness Week: As directed by Central Vigilance
Commission, the Vigilance Awareness Week 2021 was observed in HQ and all units of Coal
India Ltd and its subsidiaries from 26.10.2021 to 01.11.2021 with the theme
"Independent India @75 - Self Reliance with Integrity". Various awareness
activities, both within and outside the organization, were conducted by CIL and subsidiary
Vigilance Units during the observance of VAW-2021.
25. Particulars of Employees
Employee received remuneration either equal to or in excess of the
limits prescribed under Rule 5(2) of Companies (Appointment and Remuneration of Managerial
Personnel) Rules 2014 during 2021-22 is given in Annexure 16. Details of Rule 5(1) of
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 on disclosure
in the Board Report with reference to remuneration of Managerial Personnel of Top 10
employees are annexed to the Report.
26. Board of Directors & Key Managerial Personnel a) Functional
(Executive) Directors: -
Shri Pramod Agrawal took over as Chairman cum Managing Director (CMD)
from 1st Feb'2020 and was on the Board throughout the financial year. Shri S.N.
Tiwary-Director (Marketing) was on the Board throughout the year. Shri Sanjiv
Soni-Director (Finance) and Chief Financial Officer (CFO) had superannuated from the
services of the company w.e.f. 30th June' 21 (afternoon). Shri Sam ran Dutta, Director
(Finance), BCCL had been entrusted with an additional charge of Director (Finance), CIL
w.e.f. 1st July' 2021 and ceased to hold additional charge on 28th December' 21.
Thereafter, Shri Pramod Agrawal, CMD, CIL was entrusted with an additional charge of
Director (Finance), CIL w.e.f. 29th December' 2021 for a period of 6 months. Shri S.N.
Tiwary had been entrusted with an additional charge of Director (P&IR) w.e.f.
01.02.2021 for a period of six months or until further order. Shr Vinay Ranjan had assumed
the charge of Director (P & IR) w.e.f. 28th July' 21. Shri Binay Dayal-Director
(Technical) had superannuated from the services of the company w.e.f. 31st January' 2022
(afternoon). Shri B. Veera Reddy had assumed the charge of Director (Technical) w.e.f. 1st
February' 2022.
b) Government Nominee Directors: -
Shri Vinod Kumar Tiwari, AS, MoC was on the Board throughout the year.
Smt. Yatinder Prasad, JS & FA, MoC ceased to be Government Nominee Director w.e.f.
27th April' 21. Shri A. K. Nayak, AS & FA was appointed on 27th April'21 and ceased to
be the Government Nominee Director w.e.f. 15th June'2021. Smt. Nirupama Kotru was
appointed as Government Nominee Director w.e.f. 15th June'2021 and was on the Board for
the balance period of the year. c) Independent Directors: -
In the first week of November' 2021, following Six Independent
Directors were appointed in CIL Board as under: -
1. Prof. G. Nageswara Rao - 1st November' 2021
2. CA Denesh Singh - 1st November' 2021
3. Shri B. Rajeshchandar - 1st November' 2021
4. CA Kamesh Kant Acharya - 2nd November' 2021
5. Shri Makwana P Kalabhai - 2nd November' 2021
6. Dr. Arun Kumar Oraon - 5th November' 2021
All the above Independent Directors were on the Board for the balance
period of the year. d) Permanent Invitee: -
Shri S K Mishra, Addl. Member (Traffic Transportation) was appointed as
a permanent invitee from 22nd April' 20 and ceased to b a Permanent Invitee on 1st July'
2021. Smt. Jaya Varma Sinha, Additional Member (Traffic), Railway Board was appointed as a
Permanent Invitee on 27th Sept' 2021 and on the Board for the balance period of the year.
Shri S. Saran, CMD, CMPDIL on superannuation ceased to be the permanent invitee from 1st
May' 2021. Shri P.S. Mishra, CMD, ECL was appointed as a Permanent Invitee on 10th May'
2021. Shri P.M. Prasad, CMD, CCL was appointed as Permanent Invitee on 9th Feb' 2022 vice
Shri P.S. Mishra and on the Board for the balance period of the year. Shri P K Sinha, CMD,
NCL had been appointed as a Permanent Invitee in CIL Board w.e.f. 27th January'21 and on
superannuation, ceased to be Permanent Invitee w.e.f. 1st Jan' 2022. Shri Bhola Singh was
appointed as a Permanent Invitee on 13th Jan' 2022 and on the Board for the balance period
of the year. e) Key Managerial Personnel: -
Shri Pramod Agrawal was Chief Executive Officer (CEO) throughout the
year. Shri Sanjiv Soni, Chief Financial Officer (CFO) had superannuated from the services
of the company w.e.f. 30th June' 21 (afternoon). Shri S.G. Chowdhury was CFO from 1st
July'21 till 31st December'21. Shri S.K. Mehta was appointed as CFO on 1st January'22 and
continuing as CFO for the balance period of the year. Shri M. Viswanathan was the Company
Secretary and Compliance Officer throughout the year.
Your Directors wish to place on record their deep appreciation for the
valuable guidance and services rendered by the Directors during their tenure, who ceased
to be the Directors during the year.
In terms of Article 39(j) of the Articles of Association of the
Company, one third of the Directors are liable to retire by rotation shall retire at the
ensuing Annual General Meeting and they are eligible for reappointment. Smt. Nirupama
Kotru will retire by rotation and has offered herself for re-appointment.
The Board of Directors held 18 meetings during the year 2021-22.
27. Composition of Audit Committee
CIL in pursuance of excellence in corporate governance formed an Audit
Committee of its Board of Directors w.e.f. 20th July' 2001 and the Audit Committee was
re-constituted by the Board in its 433rd meeting held on 12th Nov'2021 consisted of 4
Independent Directors, One Government Nominee Director, One Whole Time Director (Director
Technical) and One permanent Invitee (Director Finance). The composition, quorum, powers,
role and scope are in accordance with Section 177 of the Companies Act, 2013 and the
provisions of Regulation 18 of SEBI (LODR) 2015. For the year 2021-22, there was no
Independent Director in CIL Board from 01st April, 21 to 31st October, 21. From 1st
November, 21 to 5th November, 21, 6 Independent Directors were appointed in CIL Board.
Details were disclosed in Corporate Governance Report under point number 3.1.
28. Composition of CSR Committee
For the year 2021-22, there was no Independent Director in CIL Board
from 1st April'2021 to 31st October'2021. From 1st November'21 to 5th November' 21, 6
Independent Directors were appointed in CIL Board. This committee was reconstituted on
12th November 202 comprising of 2 Independent Directors, 1 Govt. Nominee Director and 1
Functional Director. Details were disclosed in Corporate Governance Report under point
number 3.6.
29. Declaration given by Independent directors under sub-section (6) of
Section 149.
The following independent directors had given their declaration during
2021-22 that they meet the criteria of independence as stipulated in sub-section (6) of
Section 149 of the Companies Act 2013.
1. Prof. G. Nageswara Rao
2. CA Denesh Singh
3. Shri B. Rajeshchandar
4. CA Kamesh Kant Acharya
5. Shri Makwana P Kalabhai
6. Dr. Arun Kumar Oraon
Further, as required under Section 149(7) of Companies Act'13 and
Regulations 25(8) of SEBI (LODR) Regulations 2015, Independent Directors had submitted
declaration that they meet the Independence Criteria as provided in Clause (b) of
Regulation 16(i) of LODR 2015 and they are not aware of any circumstance or situation,
which exists or may be reasonably anticipated that could impair or impact their ability to
discharge duties with an objective independent judgment and without any external
influence. Further, as required und Regulation 25(9) of LODR 2015, the Board of Directors
of the Company in its 433rd Board meeting held on 12th November' 2021 took on record the
declaration and confirmation submitted by the Independent Directors under Regulations
25(8) after undertaking due assessment of the veracity of the same.
30. Appointment/Re-appointment and Integrity, Expertise &
Experience (including Proficiency) of Independent Directors
From 1st November, 21 to 5th November, 21, 6 Independent Directors were
appointed in CIL Board. All the Independent Directors had registered themselves with IICA,
Data Bank. As stipulated by SEBI (LODR) Regulations 2015, the list of core
skills/expertise/competence identified and recommended by Nomination and Remuneration
Committee was approved by Board in its 438th Board meeting held on 10th March 2022 for
financial year 2021-22.
31 Recommendation of Audit Committee by the Board.
All the recommendations made by Audit Committee were accepted by the
Board.
32. Company's policy on directors 'appointment and remuneration
including criteria for determining qualifications, positive attributes, independence of a
director and other matters provided under sub-section (3) of section 178.
MCA vide Notification dated 5th June'2015 had exempted the above for
Government companies.
33. Remuneration policy of directors, KMPs and Senior Management -
Section 178(4).
MCA vide Notification dated 5th June'2015 had exempted the above for
directors of Government companies.
34. A statement indicating the manner in which formal annual evaluation
has been made by the Board of its own performance and that of its committees and
individual directors.
MCA vide notification dated 5th July' 2017 had exempted evaluation
mechanism for Govt. Companies. However, Company had prepared a policy for formal
evaluation of Independent Directors, Board, Committees of the Board, Executive Directors
and Non Executive Directors and got it approved by Board in its 385th meeting held on 30th
May'19.
35. Contracts or Arrangements with Related Parties
Related Party Transactions made with the Subsidiary companies were
exempted under Regulation 23(5)(a) and (b) of Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015 being transactions
between two government companies and transactions entered between a holding and its wholly
owned Subsidiaries whose accounts are consolidated with holding company and placed before
the shareholders at the general meeting for approval. Hence Form AOC2 is not prepared.
36. Loan, guarantees or investments by a company under Section 186 of
the Companies Act'2013
Loan, guarantees and investments made by Coal India Limited in terms of
Section 186 of the Companies Act 2013 is enclosed in Annexure 17 37. Familiarization
programme of Board Members.
Board of Directors are fully briefed on all business related matters,
associated risk and mitigation measure taken by the compa , new initiatives etc. of the
company. The Board of directors were also briefed about the provisions of Companies Act
2013, Prohibition of Insider Trading Regulations 2015 as amended and SEBI (Listing
Obligations and Disclosure Requirement) Regulations 2015. As per Regulation 25 of SEBI
(Listing Obligations and Disclosure Requirement) Regulations 2015, the listed entity shall
familiarize Independent Directors through various programmes about the listed entity,
including the following: (a) Nature of the industry in which the listed entity operates;
(b) Business model of the listed entity; (c) Roles, rights, responsibilities of
Independent Directors; and (d) Any other relevant information.
As per regulation 46 of SEBI (Listing Obligations and Disclosure
Requirement) Regulations 2015, the details of familiarization programmes given to
Independent Directors is to be disclosed on the website of the company. The same is
disclosed in company's website and link s given hereunder:
-https://www.coalindia.in/media/documents/Familiarization_Programme_imparted_to_Independent_Directors_ZDCHdy3.pdf
38. Sexual Harassment of Women at the Workplace
The company has an Anti-Sexual Harassment Policy in line with the
requirements of The Sexual Harassment of Women at the Workpla (Prevention, Prohibition
& Redressal) Act, 2013. Internal Complaints Committee (ICC) is working at every
Subsidiary and office of Coal India Limited to redress complaints regarding sexual
harassment. All women employees (permanent, contractual, temporary, trainees) are covered
under the said policy. The ICC members of Coal India Limited, headquarters are as under:
1. Ms. Binita De - Chairperson
2. Shri CVS Ramanujam- Member
3. Ms. Namrata Shukla- Member
4. Ms. Shweta Loharuka- Member
5. Shri Arun Bohra - Member
6. Ms. Pallabi Halder - NGO Member
One sexual harassment complaint was received during the year 2021-22 at
Coal India Limited Headquarter. Charges of sexual harassment in the complaint not proved.
However, warning letter has been issued to the employee.
39. DIRECTORS' RESPONSIBILITY STATEMENT
In terms of Section 134(3) (c) of the Companies Act, 2013, read with
the Significant Accounting Policies at Note-2 & Additional Notes on Accounts at
Note-38 forming part of CIL (Standalone) Accounts and Significant Accounting Policies at
Note-2 & Additional Notes on Accounts at Note-38 forming part of CIL (Consolidated)
Accounts.
It is confirmed that: a) In the preparation of Annual financial
statements, the applicable Indian Accounting Standards have been followed and that no
material departures have been made from the same; b) The Accounting Policies have been
selected and applied consistently and judgements and estimates made that are reasonable
and prudent so as to give a true and fair view of the state of affairs of the company at
the end of the financial year and profit & loss of the company for that period; c)
Proper and sufficient care have been taken for maintenance of adequate accounting records
in accordance with the provisions of this Act for safeguarding the assets of the Company
and for preventing and detecting fraud and other irregularities; d) The Annual Accounts
have been prepared on a going concern basis; e) Internal Financial Controls have been laid
down and that such controls are adequate and were operating effectively during the year
ended 31st March'2022. f) Proper systems have been devised to ensure compliance with the
provisions of all applicable laws and such systems were adequate and operating
effectively.
For CIL (Consolidated) Accounts, such confirmation is based on
confirmation obtained from ten Indian subsidiaries of CIL viz: Eastern Coalfields Limited,
Bharat Coking Coal Limited, Central Coalfields Limited(consolidated), Northern Coalfields
Limited, Western Coalfields Limited, Mahanadi Coalfields Limited (consolidated), South
Eastern Coalfields Limited (consolidated), Central Mine Planning & Design Institute
Limited, CIL Solar PV Limited and CIL Navikarniya Urja Limited. However, for the overseas
subsidiary viz. Coal India Africana Limitada, which was incorporated under Mozambique
Commercial Code and for Joint Ventures viz. International Coal Ventures Private Limited,
NTPC Urja Private Limited, Hindustan Urvarak & Rasayan Limited, Talcher Fertilizers
Limited and Coal Lignite Urja Vikas Private Limited where CIL is not the majority
shareholder, such confirmation have not been obtained.
Internal Financial Control & its Adequacy : (Details are disclosed
in MD & AR portion)
40 . ACCOUNTS OF THE SUBSIDIARIES
The statement containing the salient features of the financial
statements of company's Subsidiaries, Associate companies and Joint ventures under the
first proviso to sub-section (3) of section 129 of Companies Act,2013 is enclosed as AOC 1
in Annexure 18. In terms of General Circular No.2/2011 dated 8th Feb 2011 from Ministry of
Corporate Affairs, the Annual Accounts of the Subsidiary companies shall be made available
to the shareholders on demand.
41. COST AUDIT REPORT & COST AUDITOR
M/s Shome & Banerjee conducted Cost Audit of your company for the
year 2020-21 and Cost Audit Report was approved by the Board of Directors in their 431st
meeting held on 17th Sept. 2021. The above report was filed in XBRL mode with MCA on 24th
Sept. 2021.
M/s Shome & Banerjee was appointed as Cost auditor for CIL
Standalone for the year 2021-22. E-form CRA-2 has been filed with MCA portal vide SRN
T46686655 dated 24th September' 2021.
42. IMPORT CONSUMED (MACHINERIES, SPARES AND ACCESSORIES)
Import consumed (machineries, spares and accessories) by Coal India Ltd
(Consolidated) during the last 3 years are as under:
|
|
(Rs in crores) |
| Year |
Assessed Value |
Custom Duty Including GST & Cess |
| 2019-20 |
198.00 |
42.86 |
| 2020-21 |
1952.20 |
610.45 |
| 2021-22 |
517.78 |
168.71 |
43. SECRETARIAL AUDIT
In pursuance of Section 204 of Companies Act 2013, company had
conducted Secretarial Audit for the year 2021-22 by a peer reviewed practicing Company
Secretary firm M/s Parikh & Associates, Practising Company Secretaries. Their
appointment was approved in 400th CIL Board meeting held on 12th March'20. Company has
obtained 'Secretarial Audit Report' for the year 2021-22 in form MR-3 and the to their
comment was enclosed in Annexure 19. In addition, CIL has 5 Material Unlisted
Subsidiaries and their Secretarial Audit Report along with Observation of Secretarial
Auditor and Management Reply are also annexed as per Regulation 24A of LODR 2015.
44. RISK MANAGEMENT POLICY
CIL has approved Risk Management Charter and Risk Register to build up
a strong Risk Management Culture within CIL for achievin company's goals and objectives.
The entity level Risk Assessment comprises Strategic Risk, Operational Risk, Financial
Risk, Compliance Risk, Project Related Risk and Support System Risk.
As per the Risk Register, various risks have been identified for CIL
& its Subsidiaries. Risk Owner & Risk Mitigation Plan Owner have also been
nominated for each risk identified to ensure continuous monitoring and mitigation thereof.
A Risk Management team headed by CRO in consultation with HoDs and under the guidance of
the Risk Management Committee had implemented the governance process envisaged in the Risk
Management Framework along with formulation of Risk Mitigation plans for RTMs (Risk That
Matters) of CIL.
As per the LODR 2015, risk related to Cyber Security has been included
in RTMs. CIL is monitoring mitigation measures on a continuous basis.
45. CSR for COVID-19 Relief by CIL in FY 21-22
Expenditure incurred by CIL and its subsidiaries during F.Y. 2021-22 to
combat Covid-19 are as under:-
| S. No. Head |
Exp. In FY 21-22 |
|
(Rs cr.) |
| 1 Creation/Operation of Health Infrastructure |
215.59 |
| 2 Contribution to Funds/Disaster Management Authorities |
20.74 |
| 3 Food Distribution |
2.01 |
| 4 Logistics Support |
3.02 |
| 5 Safety kits and material distribution |
0.94 |
| 6 Other works |
1.59 |
| TOTAL |
243.89 |
Creation/Operation of Health Infrastructure
COVID-19 infrastructure created during FY 20-21 i.e. during the 1st
wave of the pandemic continued to serve during the subsequent waves of the pandemic in FY
21-22 too. New projects undertaken in FY 21-22 were:
1. Improvement of Infrastructure at District Hospital, Simdega to
tackle COVID-19 related challenges
2. Providing oxygen concentrators and other related expenditure for
Medical Aid Centers for COVID-19 treatment at various places in Bihar & Jharkhand
3. Installation of 3 ventilators at Kolkata Police Hospital
4. 200 bedded Dedicated COVID Hospital at Hasdiha, Dumka, Jharkhand
5. 200 bedded COVID ward at Chattisgarh Institute of Medical Sciences
(CIMS), Bilaspur
6. 64 slice CT Scan machine at District Hospital, Baikunthpur,
Chattisgarh
7. Providing Logistics and healthcare equipment in Level 1 facility at
Sonbhadra district, Uttar Pradesh
8. Providing healthcare equipment in govt. hospitals at Sonbhadra
district, Uttar Pradesh
9. Procurement of medical equipment and equipping makeshift hospitals
for preventing spread of COVID-19 in Singrauli, Madhya Pradesh 10. Providing oxygen
pipeline and medical equipment at Chatra, Jharkhand 11. Assistance for setting up digital
care and home nursing centre at Bokaro, Jharkhand 12. Setting up Covid center with ICU
facility at Latehar district, Jharkhand 13. Construction of ICU of hospital at Village:
Jorkat, District- Palamu, Jharkhand 14. Medical equipment in ICU of Sheikh Bhikhari
Medical College & Hospital, Hazaribagh, Jharkhand 15. 150 bedded makeshift COVID
hospital at Bokaro, Jharkhand
Mission Praana Vayu
As the nation battled the second wave of COVID-19 pandemic during April
- May 2021, CIL undertook 'Mission Praana Vayu' under which CIL and subsidiaries took up
the task to install 31 oxygen plants in company hospitals as well as in govt. hospitals.
These plants have a combined capacity of 35,200 LPM and can support a total of 5,040 beds.
6 plants have been installed in 4 company hospitals and 25 plants have been installed in
24 govt. hospitals. The details are as under:
| S. No. Hospital |
State |
District |
Plant Capacity (LPM) |
Bed Capacity |
|
Company Hospitals |
|
|
| 1 Central Hospital Gandhinagar Ranchi |
Jharkhand |
Ranchi |
1100 |
150 |
| 2 Nehru Shatabdi Chikitsalaya - 2 plants |
Madhya Pradesh |
Singrauli |
1200 |
150 |
| 3 Ramgarh Hospital |
Jharkhand |
Ranchi |
1100 |
150 |
| 4 Central Hospital Dhanbad - 2 plants |
Jharkhand |
Dhanbad |
2000 |
500 |
|
|
Govt. Hospitals |
|
|
| 5 District Hospital Simdega |
Jharkhand |
Simdega |
167 |
50 |
| 6 Community Health Centre Tandwa |
Jharkhand |
Chatra |
200 |
50 |
| 7 AIIMS Bhopal |
Madhya Pradesh |
Bhopal |
850 |
500 |
| 8 Railway Hospital Danapur |
Bihar |
Patna |
500 |
50 |
| 9 CHC Ormanjhi |
Jharkhand |
Ranchi |
200 |
20 |
| 10 CHC Sonahatu |
Jharkhand |
Ranchi |
200 |
20 |
| 11 District Hospital East Singhbum |
Jharkhand |
East Singhbum |
250 |
115 |
| 12 Govt. ESI Hospital Nagda |
Madhya Pradesh |
Ujjain |
500 |
68 |
| 13 CHC Chiri |
Jharkhand |
Lohardaga |
250 |
25 |
| 14 Steel City Hospital Bokaro |
Jharkhand |
Bokaro |
500 |
70 |
| 15 IG Govt. Medical College |
Maharashtra |
Nagpur |
3170 |
400 |
| Hospital Nagpur |
|
|
|
|
| 16 Medical College and Hospital Rewa |
Madhya Pradesh |
Rewa |
1500 |
115 |
| 17 Medical College and Hospital Jabalpur |
Madhya Pradesh |
Jabalpur |
1500 |
115 |
| 18 Civil Hospital Kukshi |
Madhya Pradesh |
Dhar |
300 |
23 |
| 19 Govt Medical College |
Maharashtra |
Nagpur |
6340 |
400 |
| Nagpur - 2 plants |
|
|
|
|
| 20 Govt. Medical College Chandrapur |
Maharashtra |
Chandrapur |
2400 |
400 |
| 21 Medical College and Hospital Indore |
Madhya Pradesh |
Indore |
1500 |
115 |
| 22 Medical College and Hospital Sagar |
Madhya Pradesh |
Sagar |
1500 |
115 |
| 23 Civil Hospital Budhni, Sehore |
Madhya Pradesh |
Sehore |
300 |
23 |
| 24 AIIMS Nagpur |
Maharashtra |
Nagpur |
3170 |
400 |
| 25 Medical College and Hospital Bhopal |
Madhya Pradesh |
Bhopal |
1500 |
115 |
| 26 Jangipur Hospital Murshidabad |
West Bengal |
Murshidabad |
1000 |
300 |
| 27 Onda Hospital Bankura |
West Bengal |
Bankura |
1000 |
250 |
| 28 Sub Divisional Hospital Durgapur |
West Bengal |
Paschim Bardhaman |
1000 |
350 |
Food & Safety Material Distribution during COVID-19 pandemic till
date
Around 5.5 lakh cooked food/dry ration packets distributed Over 90,000
liters of hand sanitizers distributed Over 19.5 lakh masks distributed
Other Support
Despite lockdown restrictions, CIL and subsidiaries were able to spend
28% and 27% more than their statutory requirement on CSR in FY 20-21 and FY 21-22
respectively. This gave employment to people of nearby areas of mines in civil
construction projects which w implemented under CSR. Women trained in Khadi and handloom
by NCL sold masks to different agencies. MCL procured 3.10 lakh masks from women SHGs in
Odisha benefitting about 200 women.
COVID-19 had a lot of unwanted side effects. Due to closure of schools,
students had to switch to online classes but underprivileged students were not able to
afford laptops/mobiles/tablets to take the classes in a befitting manner. CIL donated 150
laptops to students of Kasturba Balika Vidyalaya so that they can study well. CIL is also
supporting performing artists who were in distress due to closure of tourist places
through "Bharat Ke Kaladharmi" project.
46 . WEBLINK
The following policies may be accessed on the Company's website as
under: -
1. Corporate Social Responsibility Policy: https://www.coalindia.in/media/documents/CSR_Policy_w.e.f._08.04.2021.pdf
2. Vigil Mechanism/Whistle Blower Policy: https://www.coalindia.in/media/documents/whistle-blower-policy_TYEsLJw.pdf
3. Policy for determining Material Subsidiary: https://www.coalindia.in/media/documents/POLICY_FOR_DETERMINING_MATERIAL_SUBSIDIARIES_21032015.pdf
4. Related Party Transaction Policy: https://www.coalindia.in/media/documents/Related_Party.pdf
5. Policy on determination of Materiality under SEBI(LODR)
Regulations,2015 https://www.coalindia.in/media/documents
Policy_on_determination_of__Materiality_under_SEBI_LODR__Regulations_2015__030_CnX61Sk.PDF
6. Policy on Preservation of documents including Archival Policy
under SEBI(LODR) Regulations 2015 https://www.coalindia.in/media/documents/
Policy_on_Preservation_of_documents_including_Archival_Policy_under_SEBI_LODR__ZXTbKI6.pdf
7. Dividend Distribution Policy under SEBI (LODR) Regulations 2015 https://www.coalindia.in/media/documents/Dividend_Distribution_policy_of_Coal_India_Limited_25102017_QwCV1sY.pdf
8. Annual Return for the year 2021-22.
Pursuant to Section 92(3) read with Section 134(3)(a) of the Act, the
Annual Return as on March 31, 2022 is available on the Company's website on
https://www.coalindia.in/media/documents/MGT7.pdf
47 . COMPANY CONFIRMS THE FOLLOWING: -
1. None of the Director is disqualified for appointment as per Section
164 of the Companies Act'2013.
2. Company has not issued any Equity share with differential voting
rights, Sweat Equity shares and ESOP.
3. The Unclaimed Interim Dividend amount for the year 2014-15 amounting
to Rs 71,16,705/- was transferred to IEPF Account on 1st March'2022. In addition, 17,406
shares in respect of which dividend remained unclaimed for the last 7 years had also been
transferred to IEPF Account on 04.04.2022. The details are available in CIL website.
4. Statutory, Secretarial, and Cost Auditors had not resigned during
the year 2021-22.
5. No relative of a director was appointed to place of profit.
6. As per Regulation 32(4) of SEBI (Listing Obligations and Disclosure
Requirement) Regulations, 2015 deviation of Proceeds of Public issue is not applicable to
the company.
7. There is no deposit covered under Chapter V of Companies Act 2013.
8. There is no deposit, which is not under compliance of Chapter V of
Companies Act 2013.
9. There is no change in the nature of business.
10. No Director is in receipt of any commission from Subsidiary
companies in which he is a director.
11. Applicable Secretarial Standards, i.e. SS-1 and SS-2, relating to
'Meetings of the Board of Directors' and 'General Meetings , respectively, have been duly
followed by the Company.
12. There is no Material Change in company business from the end of
financial year 2021-22 till the date of this Board Report. 13. There has been no
application made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016
(31 of 2016) during the year alongwith their status as at the end of the financial year
2021-22.
14. The details of difference between amount of the valuation done at
the time of one time settlement and the valuation done while taking loan from the Banks or
Financial Institutions along with the reasons thereof was not applicable for the Financial
Year 2021-22.
48. ADDITIONAL INFORMATION
1. Details in respect of frauds reported by Auditors under section
143(12) other than those which are reportable to the Central Government.: No such report
of frauds as per Audit Report of Standalone as well as Consolidated Accounts has been
received.
2. Material changes and commitments, if any, affecting the financial
position of the company which have occurred between the end of the FY and the date of the
report: No such material changes and commitments occurred between the end of the FY and
the date of the report which may affect the Standalone as well as consolidated financial
position of the company.
3. The names of companies which have become or ceased to be its
subsidiaries, joint ventures or associate companies during the y The company has
incorporated two wholly owned subsidiaries on 16th April, 2021 viz. CIL Solar PV Limited
for manufacturing of solar value chain (Ingot-wafer-Cell Module) and CIL Navikarniya Urja
Limited for renewable energy.
49 . ACKNOWLEDGEMENT:
The Board of Directors of your Company wishes to record their deep
sense of appreciation for the sincere efforts put in by the employees of the Company and
Trade Unions. Your Directors also gratefully acknowledge the co-operation, support and
guidance extended to the
Company by various Ministries of the Government of India in general and
Ministry of Coal in particular, besides the State Governments. Your Directors also
acknowledge with thanks the assistance and guidance rendered by Statutory Auditors, the
Comptroller and Auditor General of India, Registrar of Companies, West Bengal, Secretarial
Auditor and Cost Auditor and wishes to place on record their sincere thanks to Consumers
for their continued patronage.
50. ADDENDA
The following are annexed:-ii) Subsidiary wise details of Dividend
income of CIL Standalone (Annexure 2) iii) The comments of the Comptroller and
Auditor General of India on Standalone Financial Statements of Coal India Limited and
Management reply (Annexure 3) iv) Auditors Report on the Standalone Financial
Statements for the year ended 31st March, 2022 including Report on the Internal Financial
Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013
("the Act") [Annexure 3(A)] v) The comments of the Comptroller and
Auditor General of India on Consolidated Financial Statements of Coal India Limited and
Management reply (Annexure 4) vi) Auditors Report on the Consolidated Financial
Statements for the year ended 31st March, 2022 including Report on the Internal Financial
Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013
("the Act") [Annexure 4(A)] vii) Subsidiary wise Coal Off-take. (Annexure
5) viii) Sector-wise dispatch of coal & coal products. (Annexure 6) ix)
Subsidiary wise details of Stock of Coal. (Annexure 7) x) Subsidiary wise details
of Trade Receivables. (Annexure 8) xi) Subsidiary-wise payment of Royalty, GST, GST
compensation Cess, Cess, Sales Tax, and Others. (Annexure 9) xii) Subsidiary-wise
Coking & Non-coking production, Production from underground and opencast mines. (Annexure
10) xiii) Subsidiary-wise Washed Coal (Coking) Production. (Annexure 10A) xiv)
Subsidiary wise Overburden Removal. (Annexure 10B) xv) Population of equipment. (Annexure
11) xvi) Subsidiary wise details of Capital Expenditure. (Annexure 12) xvii)
Project Implementation (Annexure 13) xviii) Safety performance. (Annexure 14) xix)
Subsidiary wise manpower. (Annexure 15) xx) Disclosures under Rule 5(1) of
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. (Annexure
16) xxi) Loan and Advances, Guarantees, Investments made by the company under Section
186(4) of the Companies Act'2013 (Annexure 17) xxii) Statement pursuant to first
proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules,
2014) as on 31st March, 2022. (Annexure 18) xxiii) Secretarial Audit Report under
Section 204 of Companies Act 2013 and Secretarial Audit Report of Material Subsidiaries
and Management Explanation. (Annexure 19) xxiv) Foreign Exchange Earning and Outgo
under Rule 8 of Companies (Accounts) Rules 2014 (Annexure 20) xxv) Details about
Research and Development of the Company (Annexure 21) xxvi) Disclosure as per
Section 135 of Companies Act 2013 on Corporate Social Responsibility (Annexure 22) xxvii)
Significant and Material Orders passed by the Regulators or Courts. (Annexure 23) xxviii)
Corporate Governance Report. (Annexure 24)
|
For and on behalf of the Board of Directors |
|
Sd/- |
|
Pramod Agrawal |
| Dated: 26th July' 2022 |
Chairman |
| Place : Kolkata |
(DIN-00279727) |