Ladies and Gentlemen,
The behalf of the Board of Directors, I have great pleasure in presenting to you, the 43rd Annual Report of Coal India Limited (CIL) and Audited Accounts for the year ended 31st March, 2017 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 headquarters at Kolkata, West Bengal. CIL is the single largest coal producing company in the world and one of the largest corporate employers with manpower of 3,10,016 (as on 1st April, 2017). CIL operates through 82 mining areas spread over eight provincial states of India. Coal India Limited has 394 mines (as on 1st April, 2017) of which 193 are underground, 177 opencast and 24 mixed mines. CIL further operates 15 coal washeries, (12 coking coal and 3 non-coking coal) and also manages other establishments like workshops, hospitals, and so on. CIL has 27 training Institutes. Indian Institute of Coal Management (IICM) is an excellent training centre operates under CIL and imparts multidisciplinary management development programmes to the executives. Coal India''s major consumers are Power and Steel sectors. Others include cement, fertilizer, brick kilns and a host of other industries.
CIL has eight fully owned Indian subsidiary companies:
- Eastern Coalfields Limited (ECL),
- Bharat Coking Coal Limited (BCCL),
- Central Coalfields Limited(CCL),
- Western Coalfields Limited (WCL),
- South Eastern Coalfields Limited (SECL),
- Northern Coalfields Limited (NCL),
- Mahanadi Coalfields Limited (MCL) and
- Central Mine Planning & Design Institute Limited (CMPDIL).
In addition, CIL has a foreign subsidiary in Mozambique namely Coal India Africana Limitada (CIAL).
The mines in Assam i.e. North Eastern Coalfields is managed directly by CIL.
Mahanadi Coalfields Limited, a subsidiary of Coal India Ltd is having four (4) Subsidiaries and one(1) Joint Venture, SECL has two(2) Subsidiaries and CCL has one (1) subsidiary.
A) Subsidiaries of MCL
1. MJSJ Coal Ltd.
MJSJ Coal Ltd was incorporated on 13th August, 2008 as a Joint Venture Company of MCL. MJSJ Coal Ltd has been formed for Gopalprasad OCP where MCL is having 60% shares, JSW Steel Limited and JSW Energy Limited having 11% share each and Shyam Metalics and Energy Ltd (formerly known as Shyam DRI Power Limited) and Jindal Stainless Limited having 9% shares each. The paid up Share Capital of MJSJ Coal Ltd as on 31st Mar?2017 was Rs.95.10 Crore. The Hon''ble Supreme Court of India in its judgement dated 25th Aug''14 and order dated 24th Sep''14 declared allocation of Utkal-A coal block allocated to MJSJ Coal Ltd. as illegal and has quashed the allocation.
2. MNH Shakti Ltd.
MNH Shakti Ltd was incorporated on 16th July, 2008 as a Joint Venture Company of MCL. MNH Shakti Ltd has been formed for Talabaria OCP where MCL is having 70% share, Neyveli Lignite Corporation Ltd having 15% share and Hindalco Industries Ltd. having 15% share. The Paid up Share Capital of MNH Shakti Ltd as on 31st Mar?2017 was Rs.85.10 Crore. The Hon''ble Supreme Court of India in its judgement dated 25th Aug''14 and order dated 24th Sep''14 declared allocation of Talabira - II and Talabira - III coal blocks allocated to MNH Shakti Ltd. as illegal and has quashed the allocation.
3. Mahanadi Basin Power Limited.
Another Company ?Mahanadi Basin Power Limited?(MBPL) was incorporated on 2nd December, 2011 and certificate for commencement of business, issued by ROC on 6th Feb''2012. MBPL has been formed as an SPV with 100% shares held by Mahanadi Coalfields Ltd for power generation of 2x800 MW through Pit Head Power plant at Basundhara Coalfields. It is a wholly owned subsidiary of Mahanadi Coalfields Ltd (MCL) having its Registered Office at Bhubaneswar. The Paid-up Share Capital of Mahanadi Basin Power Limited as on 31st Mar''17 was Rs.5 lakh.
4. Mahanadi Coal Railway Limited
Pursuant to MoU signed between IDCO, MCL and IRCON on 20th May, 2015, a Joint venture Company namely, Mahanadi Coal Railway Limited was formed on 31st August, 2015 with a equity participation in the ratio of 64:26:10 between MCL, IRCON and IDCO to build, construct, operate and maintain identified rail corridor projects including doubling, third line, traffic facility projects important for coal connectivity that are critical for evacuation of coal from mines, in the state of Odisha. The Share Capital of Mahanadi Coal Railway Limited as on 31st Mar''17 was Rs.5 Lakh.
Neelanchal Power Transmission Company Private Limited -A joint venture of MCL
MCL has ventured into Power Transmission Business in the State of Odisha for better utilisation of surplus funds along with development of infrastructure in the State of Odisha. Accordingly, on 8th January, 2013 another joint Venture Company namely Neelanchal Power Transmission Company Private Limited (NPTCPL) was incorporated in partnership with Odisha Power Transmission Company Ltd (OPTCL) having 50:50 equity participation by virtue of a Joint Venture Agreement.
(B) Subsidiaries of SECL
1. M/s Chhattisgarh East Railway Ltd(CERL)
CERL is a joint venture Company among South Eastern Coalfields Limited, M/s IRCON International Limited and Chhattisgarh State Industrial Development Corporation incorporated on 12th Mar''13 for construction of railway lines for evacuation of coal with 64% shareholding of SECL. During the year 2016-17, the Paid up Capital of the company increased from Rs.139.05 Crores to Rs.166.95 Crores and debt from Rs.150 Crores to Rs.300 crores.
2. M/s Chhattisgarh East- West Railway Ltd(CEWRL)
CEWRL is a joint venture Company among South Eastern Coalfields Limited, M/s IRCON International Limited and Chhattisgarh State Industrial Development Corporation incorporated on 25th Mar''13 for construction of railway lines for evacuation of coal with 64% shareholding of SECL. During the year 2016-17, the Paid up Capital of the company increased from Rs.4.05 Crores to Rs.500 Crores and debt at Rs.75 Crores
(C) Subsidiary of CCL
Jharkhand Central Railway Limited is a Joint Venture Company among Central Coalfields Limited, M/s IRCON International Limited and Govt. of Jharkhand incorporated on 31st August'' 2015 for evacuation of Coal in which CCL holds 64% shares. During the year 2016-17, the Authorised Capital of the company increased from Rs.5 Crores to Rs.100 Crores.
The Project Implementation Agreement between JCRL and IRCON International Limited as project management & implementing agency was finalized. The Detailed Project Report has been deliberated in the JCRL Board meetings. IRCON has been directed for submission of modified DPR with various options considering the technical requirements and financial viability of the project. The investment decision shall be taken by JCRL Board after submission of final DPR by M/s IRCON with various options.
1. STATE OF AFFAIRS
1) Company & its subsidiaries produced 554.14 MT. of coal with a growth of 2.85% compared to the last year same period.
2) Company achieved an off-take of 543.32 MT. with a growth of 1.7% compared to the last year same period.
3) CIL has acheived a gross sales of Rs.1,22,294.46 crores, a landmark achievement.
4) Not a single power-utility was in critical or super-critical condition for want of coal during 2016-17
5) Due to the improved despatch and better quality of coal, import of coal to India had reduced during 2016-17.
AWARDS RECEIVED DURING 2016-17
1. Sri S. Bhattacharya, Chairman, Coal India Limited was conferred with ''Best CEO -PSU'' Award in the Sixth edition of the prestigious ''Forbes India Leadership Awards - 2016'' in a function held on 8 November in Mumbai.
2. Sri S. Bhattacharya, Chairman, Coal India Limited was conferred with ''g-files Governance Award 2016'', the award was presented, on 26th November 2016 in New Delhi, by Shri Chaudhary Birender Singh, Hon''ble Union Minister for Steel, Government of India and Shri Ram Bilas Sharma, Hon''ble Minister, Education and Tourism, Government of Haryana in an event.
3. CIL was conferred with the following awards:
a. Coal & Coal Products by Dun & Bradstreet in 2017.
b. Best Implementation of Corporate Social Responsibility by ABP News in 2017.
c. Most Efficient & Fast Growing Maharatna by Dalal Street Investment Journal Award in Best Maharatna Category by Hindustan PSU Awards in 2016.
d. Best CFO Award by Financial Express
2. FINANCIAL PERFORMANCE
2.1 Financial Results (CIL Consolidated)
CIL is one of the largest profit making and tax & dividend paying enterprises in India. CIL and its subsidiaries have achieved an aggregate Pre-Tax Profit of Rs.14,433.71 crores for the year 2016-17 against a pre-tax profit of Rs.21439.80 crores for the year 2015-16. CIL as a group had achieved a post tax profit of Rs.9265.98 crores in 2016-17 compared to Rs.14266.78 crores in 2015-16. Total comprehensive income of Rs.9347.98 crores in 2016-17 as compared to Rs.14,561.19 crores in 2015-16 (excluding share of non-controlling interest of Rs.0.25 crore, previous year: Rs.0.04 crore). The subsidiary wise details of Pretax Profit of CIL are given in Annexure 1.
Highlights of performance
The highlights of performance of Coal India Limited Consolidated for the year 2016-17 compared to previous year are shown in the table below:
PARTICULARS 2016-17 2015-16
Production of Coal (in million tonnes) 554.14 538.75*
Off-take of Coal (in million tonnes) 543.32 534.50*
Sales (Gross) (Rs./Crores) 122294.46 108147.54
Capital Employed (Rs/Crores) Note- 1 58428.87 67608.07
Capital Employed (Rs./Crores)-excluding capital work in progress and intangible assets under development 48063.28 61634.91
Net Worth (Rs./Crores) 24506.97 34814.98
Profit Before Tax (Rs./Crores) 14433.71 21439.80
Profit for the Period(Rs./Crores) 9265.98 14266.78
Total Comprehensive Income attributable to the Owners of the company(Rs./Crores) 9347.98 14561.19
PAT / Capital Employed (in %) 15.86 21.10
Profit before Tax / Net Worth (in %) 58.90 61.58
Profit after Tax / Net Worth (in %) 37.81 40.98
Earning Per Share (Rs.)
(Considering Face Value of Rs.10 per share) 14.78 22.59
Dividend per Share (Rs.)
(Considering Face Value of Rs.10 per share) 19.90 27.40
Coal Stock (Net) (in terms of No. of months Net Sales) 1.18 0.98
Trade Receivables (Net) (in terms of No of Months Gross Sales) 1.05 1.27
*Production and Offtake of Coal for FY 2016-17 includes 5.324 MT and 4.118MT (FY 2015-16 2.28 MT & 2.15 MT) of Gare Palma IV/2&3 Mine for which Coal India Ltd. has been appointed akin to a designated custodian w.e.f 01.04.2015(through SECL)
Note-1: Capital employed = Gross Block of Fixed assets (including capital work in progress and intangible assets under development) less accumulated depreciation plus current assets minus current liabilities.
Transfer to Reserves
During the year 2016-17, a sum of Rs.510.75 crores was transferred to General Reserves out of CIL Consolidated profits and amount of Rs.3650 crores was utilized for buyback of shares. Above amount of Rs.510.75 crores includes transfer of Rs.8.01 Crores transferred out of CIL Standalone profits.
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 are paid out of CILs Standalone income, the major part of which constitutes the dividend income received from its four profit making subsidiaries i.e. CCL, NCL, SECL and MCL. The breakup of such dividend (Interim + Final) received and accounted for during the year from different subsidiaries are given in Annexure 2.
During the year, CIL Standalone has paid a total dividend (by way of interim dividend) of Rs.12352.76 crores @ Rs.19.90 per share on 620,74,09,177 number of Equity Shares of Rs.10/- each fully paid up. Out of above total dividend, the share of Govt of India was Rs.9736.40 crores and for other shareholders, Rs.2616.36 crores. (In 2015-16 - Govt of India - Rs.13,784.86 crores and Other shareholders - Rs.3,521.98 crores)
2.3 Supplementary Audit of Financial Statements by Comptroller and Auditor General of India (C&AG)
There are no comments issued by the office of the C&AG either on Standalone or Consolidated Financial Statements of the company for the year 2016-17 on supplementary audit conducted under section 143(6)(a)[and also read with Sec 129(4)] of the Companies Act, 2013. The comments on supplementary audit of Standalone and Consolidated Financial Statements are enclosed as Annexure 3 and Annexure 4 respectively.
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 2016-17. However, they have drawn attention under ''Emphasis of Matter'' on certain issues. These issues under ''Emphasis of Matter'' along with observations of the Auditors elswhere in the annexures of the Audit Report are enclosed as Annexure 5 & Annexure 5(A) respectively with Management explanations thereto.
3. COAL MARKETING
3.1 (a) Off-take of Raw Coal
Off-take of raw coal continued to maintain its upward trend and reached 543.32 million tonnes for fiscal ended March 2017, surpassing previous highest figure of 534.50 million tonnes achieved during the last year, i.e., an increase of 1.7 % over the last year. The overall raw coal off-take achieved was 90.8 % of the Annual Action Plan Target. In the year 2016-17, ECL, CCL, NCL, MCL and NEC outperformed their achievement during the last year. NCL had exceeded its target for 2016-17.
Company-wise target vis-a-vis actual off-take for 2016-17 and 2015-16 are shown under Annexure 6.
Offtake could have been more, but for the following reasons:
Power houses started the year with huge stock of 38.7 Mt and regulated intake and preferred to consume from stock. Almost 12 Mt stock consumed from the stock by the power stations during the year. Wagon availability also sporadically affected off-take at different subsidiaries.
ECL: Production and dispatch of coal from Rajmahal OCP was adversely affected due to fatal accident. Less demand of higher grade coal from the Power Houses.
CCL: Intermittent Law & Order problem. Logistics bottleneck at Amrapali-Magadh Mines had also come in the way of augmenting off-take.
WCL: TPPs were particularly reluctant to take coal from Cost Plus Sources.
SECL:Less demand of higher grades of Korea Rewa coal.
MCL: Sporadic incidence of law and order problem & less supply of wagons against their indents affected MCL despatch. Less movement through MGR mode also affected overall dispatch.
Initiatives taken for enhancing off-take:
- Regular co-ordination with Railway Board to optimize use of logistics resources available in the subsidiary coal companies, analyzing inputs of the subsidiaries to identify alternate source for coal movement wherever and whenever required to achieve overall sectoral targets and mitigating critical fuel requirement of consuming sectors, particularly power stations.
- Coordination with MOC for various long and short-term policy decisions to overcome coal movement constraints for power and non-power sector consumers and taking operational decisions for moving coal from various sources on contingent situations to meet critical requirements of consuming sectors, particularly power utilities etc.
- Periodic Meetings and follow up with Power producers in addressing issues relating to coal movement.
- Source Rationalization of coal linkage for optimizing coal movement as per the requirement of the consumers and logistics.
- Logistics is one of the major hurdles in reaching coal to the consumers. Capacity constraints both in terms of track and rolling stock are coming in the way for achieving the requisite growth. In order to boost-up the rail transport system, following initiatives have been taken:
- SPVs by the coal companies with the State Governments and Railways for creating rail infrastructure - two SPVs have already been formed at Chhattisgarh for creating rail connectivity at Korba/ Raigarh. Similarly, SPVs were also incorporated at Jharkhand and Odisha for similar initiatives.
- Three major last mile rail connectivity projects at Jharkhand, Odisha and Chhattisgarh have been brought under PMO Monitoring Mechanism to ensure commissioning as per the schedule.
- Special attention is given for improving coal distribution network for small and medium and other sector consumers. CIL organized meeting with State Governments to streamline the process of nominating distribution agencies by them.
- Coal companies started supplying 100 mm crushed coal to its consumers w.e.f January''2016.
- Special E-Auction Schemes
From the year 2015-16, Special Forward E-Auction scheme was introduced by MOC for meeting the coal requirement of Power plants is being continued. During 2015-16 & 201617, around 13.8 Mill tons & 47 Mill tons coal was booked by consumers under this scheme of e-auction respectively.
A similar scheme for consumers in the non - power sector was also launched as Exclusive E-auction scheme for non-power . During 2015-16 & 2016-17 , around 1.5 Mill tons & around 6.2 Mill tons coal was booked by non power consumers under this e-auction respectively .
Special Spot e-auction was also conducted once in 201617 with the objective for liquidating coal stock especially from the high stock mines and to provide scope for procuring coal at a competitive price by the consumers of non-specified end use. Around 6.2 Mill tons coal was booked in this e-auction.
- Web Portal for MSME Sector-
The web portal ?Coal Allocation Monitoring System? was launched on 17th March''2016 by Minister of State with independent charge for Power, Coal and New & Renewable Energy along with the officials from Ministry of Coal and Coal India Limited at New Delhi. The portal aims to ease the conduct of business for small and medium sector consumers having annual requirement of less than 10,000 tonnes of coal. The portal will make the system of distribution of coal to such consumers through State Nominated Agencies, more transparent. It has the following advantages:
a. Ease of doing business for consumers
b. Accountability on the part of the Govt. and its enterprises
c. 24 x 7 access of information on supply and distribution of coal in public domain
d. Online registration and feedback system for consumers for improving the system
e. Transparent coal distribution
f. State and consumer awareness
g. Peer audit among stakeholders
(b) Sector-wise dispatch of coal & coal products:
In the year 2016-17, CIL dispatched 542.494 MT of Coal & Coal Products against the AAP target of 598.031 MT i.e., an achievement of 90.7%. CIL has dispatched 7.9 MT of coal and coal products more than last year with a growth of 1.5%.
425.397 MT of coal and coal products, including despatches under special forward e-auction to power was despatched to the power utilities against the target of 450.990 MT i.e., an achievement of 94.3%. This is 12.3 MT more than last year''s dispatch of 413.109 MT, which also includes despatches under special forward e-auction to power, resulting in a growth of 3%.
Sector-wise break-up of dispatch of coal & coal products for 2016-17 against the target and last year''s actual is disclosed in Annexure 7.
3.2 Dispatches of coal and coal products by various modes:
Dispatches of coal and coal products during 2016-17 went upto 542.494 million tonnes from 534.624 million tonnes registering a growth of 1.5%. Overall dispatch by Non-Rail mode had been 91.9% of the target. Growth in despatches via Rail mode was
3.9 % whereas in the overall Non-Rail mode it decreased by 1.4 %. Road despatches decreased by 0.6% compared to the previous year. Movement by MGR also decreased by 3.5% compared to last year. Despatches through other modes, like belt & rope increased by 5.7 % compared to the last year.
Dispatch of coal and coal products by various modes for the years 2016-17 and 2015-16 is disclosed in Annexure 8.
3.3 Wagon Loading
Overall wagon loading materialization was 90.9 % of the target. This was achieved due to sustained efforts and regular coordination with railways at different levels. The increase in loading over last year was of 9.1 rakes per day. Company wise performance showed that NCL exceeded its target. All the subsidiaries except BCCL exceeded last year''s level of loading.
Wagon loading could have been even better but for the regulated lifting by Power Utilities almost in all the subsidiaries; less demand for higher grade coal from ECL and SECL, intermittent law and order problem in CCL and MCL also affected rail dispatch.
Wagon loading performance of 2016-17 vis-a-vis 2015-16 is disclosed in Annexure 9.
3.4 Consumer Satisfaction
i. For enhanced customer satisfaction, special emphasis given to Quality Management. Attuned to this objective, it was decided that 2017-18 will be declared as ''Quality Year''.
ii. In order to monitor quality right at the coalface, Officer in charge of mining have been given target to contain grade slippages within 10%.
iii. Another big step to ensure proper quality was independent assessment of grades of 871 mines/ loading points/ fractions through various academic institutes of national repute by CCO. Based on the analysis reports received from these institutions, CCO finalized the grades of different mines/sidings for the year 2017-18. Although the results of re-gradation of about 49% mines/ loading points/ fractions were not encouraging, correction would enhance the confidence of consumers.
iv. In order to monitor coal quality internally, a portal has been designed by CIL to capture entire life cycle of sample. With the help of portal, analysis of coal quality on regular basis will be possible.
v. CIL has enhanced coal handling plant capacity of about 320 MT per annum so as to maximize dispatches of crushed/ sized coal to Power sector. CIL is supplying (-) 100mm sized coal to all power plants w. e. f. 01.01.2016 except those at pit head. In addition, mobile crushers have been installed to meet the additional crushing requirement.
vi. Emphasis has been given for maximum production through surface miners. For this, surface miners have been deployed for production of coal in mines wherever technically / commercially feasible. About 50% of CILs production is being mined through surface miners. Deployment of this technology at OCP mines is bound to improve coal quality. At present 75 Surface Miners are working in opencast mines.
vii. In addition, the Washeries at BCCL, CCL, WCL and NCL have crushing/ sizing facilities to the tune of about 36.8 million tonnes. 22 new coal washeries and renovation of 05 existing washeries combined capacity of 123.7 MTPA are in various stages of planning/ commissioning.
viii. Measures like picking of shale/stone, selective mining by conventional mode, adopting proper blasting procedure/ technique for reducing the possibility of admixture of coal with over-burden material & improved sizing of coal etc. are being taken. For those mines having large inter bands of shale/stone, installation of deshaler has been planned.
ix. Joint/ Third Party sampling & analysis is in vogue for major consuming sectors e.g. power utilities, steel, cement and sponge iron. Entire supplies to Power sector are covered under third party sampling / analysis, large consumers having annual quantity of 0.4 MT or more and having FSA covered under sampling. For the first time, sampling facility has been extended to consumers of Special e-Auction for power sector and Linkage Auction through IIT-ISM and QCI. Consequent to issuance of Letter of Intent, these agencies have been advised to enter into tripartite agreement with consumers and coal companies to start the process.
x. Area laboratories of subsidiary coal companies have been equipped with 121 Bomb Calorimeters for accurate and transparent results of analysis of coal samples. 28 labs. across the subsidiary companies have already got NABL accreditation and another 27 labs, accreditation process is underway. It is expected that standardization of the process as per NABL standard will go in a long way to enhance customers'' confidence about the process of assessment of coal quality and facilitate quality monitoring.
xi. The guidelines/ SOP issued by MoC vide letter dated 26.11.2015 on third party sampling at loading ends has already been implemented through Central Institute of Mining and Fuel Research (CIMFR). Sampling for almost entire quantity covered under FSA is continuing across various loading points of coal companies.
xii. Electronic weighbridges with the facility of electronic printout have been installed at rail loading points to ensure that coal dispatches are made only after proper weighment. For this purpose, Coal Companies have installed 157 rail weighbridges in the Railway Sidings and 569 road weighbridges for weighment of trucks. Coal Companies have also taken action for installation of standby weighbridges to ensure 100% weighment.
xiii. 24 Auto Mechanical Samplers (AMS) are also working in subsidiary coal companies for coal sampling, eliminating chances of biasness in sampling process. Procurement of further AMSs is under process. The process has already been initiated to deploy Augur Sampling for drawing more representative samples. One online analyzer in each subsidiary company has been envisaged on trial basis.
xiv. In order to ensure consumer satisfaction and resolve consumer complaints, special emphasis has been given to quality management and redressal of consumer complaint. On-line filing and redressal of complaints has been initiated. Percentage of consumer complaints resolved is 99.42 % during the year 2016-17.
3.5 Marketing of Coal:
Status of execution of Fuel Supply Agreements and performance of e-auction:
Supply of coal was made to various consumers including Power Sector under the applicable provisions of New Coal Distribution Policy. Due to overall deficit in availability of coal, considering the projected coal production from domestic sources and commitments made through signing of FSAs/issuance of Letter of Assurances (LOA), supplies under FSAs has been pegged at various level of commitments (trigger). Power sector being the major consuming sector having significant importance in the economy, supplies to power sector has been guided as per the various Government directives and polices.
(i) For power stations, commissioned on or before 31.03.2009, 306 million tonnes had been considered to be supplied through bilateral legally enforceable Fuel Supply Agreements (FSA) with a trigger level of 90%. The total quantity covered under FSA against the allocation as on March''17 was about 295 million tonnes.
(ii) Apart from the above, 180 Letter of Assurances have been issued to power plants by subsidiary companies of CIL, as per the recommendations of various SLC (LT) Meetings about 433.80 Million tonnes. Further, as per Presidential Directives dated 16th April''2012 and revised directive dated 17-7-2013, a list of Power Plants having an aggregate capacity of 78535 MW was notified for signing of FSA. A total 173 TPPs, 149 cases having normal LOA and 24 cases having Tapering LOA (as per MOC OM dated 30.06.2015, tapering linkages are not existent as on date), were listed. Till 31st March''2017,out of 149 regular LOAs146 FSAs have been signed. The balance FSAs could not be signed for the reasons not attributable to CIL. However, out of the above, 1 FSA have been transferred to SCCL and 2 FSAs became null and void since the plants have been converted from IPP to CPP.
For post-NCDP Plants (Plants commissioned after March 2009), total FSA commitment of CIL as on date is for an Annual Contracted Quantity (ACQ) of about 216 Million tonnes for the aggregate capacity of about 56750 MW which is backed by long term Power Purchase Agreement (PPA) and qualify for commencement of coal supply subject to commissioning etc.
(iii) As on 1st April, 2017, 679 units other than power and steel plants have operative FSAs with subsidiaries of CIL for about 48.9 million tonnes.
(iv) For supply of coal to Small and Medium Sector Consumers, 8 million tonnes was earmarked by CIL for allocation to agencies nominated by the State Govt''s/ UT''s. 13 States sent their nomination of 19 State Agencies for the year 2016-17 of which 11 State Agencies of 10 States have signed FSAs for 2.119 mill. tonnes and drawing coal accordingly.
(v) After implementation of NCDP, 417 LOAs were also issued to consumers of sponge iron, CPP and cement as per recommendations of various SLC (LT) meetings for a quantity of 63.95 Million tonnes per annum. Out of these, 337 FSAs have been concluded till date for quantity of about 45.70 Million tonnes per annum. Out of these, 157 FSAs are active as on date with a quantity of 19 Million tonnes per annum.
(vi) CIL conducted the Tranche-I of Auction of Coal Linkages for Sponge Iron, Cement, CPP and ''Others'' sub-sectors under Non-Regulated Sector during the period June to October 2016 in accordance with the policy guidelines dated 15.02.2016 issued by Ministry of Coal. The auction has been envisaged as a transparent system of linkage allocation which is based on competitive bidding. Various consumer friendly measures such as 3rd party sampling, exit option, no performance incentive, delivery from specified mine/siding, back-up mine in the event of Force Majeure, etc. have also been introduced. A total of 23.75 Mtpa was earmarked for Tranche-I out of which 22.14 Mtpa has been booked. The auction is followed by signing of Fuel Supply Agreements (FSA) for the booked quantity. The tenure of the FSA is 5 years which can be further extended by another 5 years on mutual agreement.
The Tranche-II of auctions was conducted during the period January to June 2017. Auctions for Sponge Iron, Cement, Others and Steel (coking), Others (coking) and CPP sub-sectors have already been concluded. A total of 14.50 Mtpa of non-coking coal and 0.26 Mtpa of coking coal have been booked under Tranche-II.
(vi) Under Special Forward E Auction scheme during the year ended Mar''17, quantity allocated was around 47 mill tonnes as against 13.8 mill tonnes allocated in the last year. The premium gained through Special Forward E-auction over & above the notified price was 16% during the year 2016-17. In Exclusive E Auction scheme during 2016-17, quantity allocated was around 6.3 mill tonnes as against 1.5 mill tonnes allocated in the last year. The premium gained through Exclusive E-auction over & above the notified price was around 9% during the year 2016-17. During the period under review, around 53.6 mill. tonnes of coal was allocated under Spot E- auction to the successful bidders as against 57.4 mill. tonnes of coal allocated during the 2015-16. The notional gain through Spot E-auction over & above the notified price was 25% during the year 201617. About 6.2 Mill tes coal booked under Special Spot E-Auction during 2016-17 with gain of 20% over notified price.
3.6 Coal Beneficiation:
Presently CIL is operating 15 Coal Washeries with a total coal washing capacity of 36.8 million tonnes per year of which 12 are coking and the rest 3 are non-coking with capacity of 23.3 and 13.5 MTY respectively. The total washed coal production from these existing washeries for the year 2016-17 was 17.04 Million Tonnes.
In addition, CIL has planned to set up 22 new Washeries and renovate 5 existing coking coal washeries with state-of-the-art technologies in the field of coal beneficiation with an aggregate throughput capacity of 123.68 MTY.
Out of the 22 new washeries, 13 are planned to wash coking coal with a cumulative capacity of 41.35 Mty, 4 of which are at different stages of construction and LOI has been issued for one. For remaining 9 new non-coking coal washeries with a total capacity of 75.5 MTY, LOA/LOIs has been issued for 3.
The major bottlenecks for setting up of these washeries are mainly Forest, Environmental and other Statutory Clearances, in addition to absence of firm commitment from the intended customers regarding acceptance of washed coal at value added prices.
3.7 Stock of Coal
The stock of coal (net of provisions) at the close of the year 2016-17 was Rs.7412.79 Crores (earlier year Rs.6162.54 crores), which was equivalent to 1.18 months value of net sales (previous year 0.98 months). The company-wise position of stock held on 31st March 2016 & 31st March 2017 are given in Annexure 10.
3.8 Trade Receivables
Trade Receivables i.e. net coal sales dues outstanding as on 31.03.2017, after providing Rs.3782.82 crores (previous year Rs.2220.20 crores) for bad and doubtful debts, was Rs.10735.85 crores (previous year reinstated Rs.11447.61 crores) which is equivalent to 1.05 months gross sales of CIL as a whole (previous year 1.27 months). Subsidiary-wise break-up of trade receivables outstanding as on 31st March 2017 as against 31st March 2016 are shown in Annexure 11..
3.9 Payment of Royalty, Cess, Sales Tax, Stowing Excise Duty, Central Excise Duty, Clean Energy Cess, Entry Tax & Others
During the year 2016-17, CIL and its Subsidiaries paid/adjusted Rs.44,068.28 crores (previous year Rs.29,084.11 crores) towards Royalty, Cess, Sales Tax and other levies as detailed below:-
Figures in Rs. Crores
Royalty 8745.84 8,209.25
Additional Royalty (MMDR Act) - 434.42
DMF 3964.47 -
NMET 221.16 -
Cess on Coal 1706.37 1,590.67
State Sales Tax / VAT 2787.91 2,444.75
Central Sales Tax 1200.09 1,144.79
Stowing Excise Duty 538.00 525.67
Central Excise Duty 2617.39 3,647.00
Clean Energy Cess 21062.06 9,980.13
Entry Tax 283.82 259.37
Others 941.00 848.06
Total 44068.28 29,084.11
Subsidiary-wise, State wise details are given in Annexure 12.
4. COAL PRODUCTION
Raw coal production and production from underground and opencast mines.
Production of raw coal during 2016-17 was 554.14 Mill Te against 538.754 Mill Te produced in 2015-16. Coal production from underground mines in 2016-17 was 31.477 Mill Te compared to 33.786 Mill Te in 2015-16. Production from opencast mines during 2016-17 was 94.32% of total raw coal production. Subsidiary wise production, production from underground and opencast mines and coking and non-coking coal production are disclosed in Annexure 13.
Reasons for less production than the target 2016-17:
Despite best and consistent efforts, constraints that have impeded the growth in coal production are as under:
(i) Major mishap at Rajmahal OC affected production at ECL.
(ii) Accumulation of high coal stock at many of the OC mines due to less lifting of coal by Cost Plus consumers at WCL.
(iii) Delayed Stage-II forest clearance at Dhanpuri OC, Amlai OC and Jampali OC and also restricted working space at Amgaon OC due to intervening forest land affected Coal Production at SECL
(iv) Scarcity of working space due to delay in handing over of forest land at Jagannath OC and Ananta OC, delay in Stage II FC at Lajkura OC & R&R issues at Bharatpur OC and Kanhia OC and affected production at MCL.
Washed Coal (Coking) Production
Subsidiary-wise production of Washed Coal (Coking) is given in Annexure 13A.
The Company-wise overburden removal is disclosed in Annexure 13B.
CIL has envisaged a coal production of 908.10 Mt in the year 2019-20 with a CAGR of 12.98% with respect to 2014-15. In the year 2017-18, the target of coal production has been pegged at 600.00 Mt with an annualized growth of about 8.3% over the achievement of last year. In 2018-19, the envisaged coal production projection is 773.70 Mt with a growth of about 28.95 %.
The capital expenditure for the year 2017-18 has been set at Rs.8500 crores. Further, Company has planned to invest Rs.6500 crores in various projects viz. Super Critical Thermal Power Plant (STPP), Solar Power, Revival of Fertilizer Plants, Coal Gasification, Acquisition of coal blocks in India & Abroad, CBM etc. during 2017-18.
In the light of Paris Protocol and consequent changes in world energy scenario, CIL is looking forward to diversify its operations towards Renewable energy like Solar Power and Clean Energy sources like CMM, CBM, CTL, UCG etc following the directives of GoI. Following that mission, MoC/CIL is in the process of formulating ''Vision Document 2030'' to decide future course of operation for sustainable entity in the nation''s energy sector.
5. POPULATION OF EQUIPMENT
Due to survey-off 5 Draglines at NCL and MCL in 2016-17 population of Dragline reduced to 35 as on 31st Mar''17. There was a reduction of 39 Shovels due to survey off of old Shovels in ECL, BCCL, CCL, NCL, WCL & SECL. CIL and its subsidiaries are planning to procure 87 shovel costing around Rs 1929 crores,515 Dumper costing around Rs 3305 crores, 124 Dozers costing around Rs 314 crores,35 Drill costing around Rs 144 crores & 6 Draglines costing around Rs 1176 crores in next 2/3 years.
Performance of HEC Dragline at NCL was not satisfactory which affected availability & utilization. Matter has been taken up with M/s HEC for improvement. Dragline of Sonepur Bazari Project, ECL was under breakdown since June 16 due to nonsupply of imported spares, which is expected to start within next 2 months. Heavy rainfall in NCL & MCL, Land and R&R problems in BCCL, MCL & SECL,were the major reasons for less HEMM utilization. Efforts are being made to improve the availability & utilization.
The population of Major Opencast Equipment (Heavy Earth Moving Machinery) as on 1st April, 16 & on 1st April, 17 along with its performance in terms of availability & utilisation expressed as percentage of CMPDIL norm is disclosed in Annexure 14.
6. CAPACITY UTILIZATION
The overall system capacity utilization for the year 2016-17 was 84.51%.It was 99.87% during 2015-16.This was mainly due to low system capacity utilization in ECL, BCCL, NCL, WCL, & MCL.
Due to accident in Rajmahal OCP of ECL, both coal production & OB removal suffered in the last quarter of 2016-17.Due to unprecedented rainfall, OB removal suffered in BCCL & NCL. In WCL,due to exhaustion of reserves in Ghughus OC, the dragline was shifted from Ghughus OC to Mungoli OC and other HEMM to different mines, which affected OB removal. In Talcher coalfields of MCL, due to law & order issues, there was a negative growth in coal production in 2016-17 compared to 2015-16.
Necessary action has already been taken for improvement in capacity utilization in 2017-18 in all the Subsidiaries of Coal India Ltd. Subsidiary wise details of capacity utilization for the year 2016-17 vis-a-vis 2015-16 are disclosed in Annexure 15.
7. PROJECT FORMULATION
7.1 Preparation of Reports:
As prioritized by subsidiary companies of Coal India Limited, preparation of Project Reports (PR) for new/expansion/reorganization mines was carried out during the year 2016-17 for building additional coal production capacity to the tune of 57.75 Mty. Revision of Project Reports/Cost Estimates for projects was also taken up along with new PR. During the period, 249 reports were prepared including 16 Geological Reports, 26 Projects Reports, 37 Draft EMPs (including 15 Form-I) and 170 Other Reports.
7.2 Project Implementation:
a) Projects Completed During the year 2016-17:
The following 7 coal projects, each costing Rs 20 Crores and above, with an ultimate capacity of 24.20 Mty and completion cost of Rs 1190.98 Crores have been completed during the year 2016 -17. The subsidiary-wise details of project completed during 2016-17 are disclosed in Annexure 16.
b) Projects started Production during the Year 2016-17:
4 projects have started coal production during the year 2016-17.The subsidiary-wise details are disclosed in Annexure 16.
c) Status of Ongoing Projects:
120 coal projects and 71 non mining projects costing Rs 20 Crores and above are in different stages of implementation. Out of 120 coal projects, 58 projects are running on schedule and 62 are delayed. Out of 71 non mining projects, 27 are delayed.
Status of Ongoing Projects Costing Rs 20 Crores and above
Projects Total Projects Projects on Schedule Projects Delayed
Mining 120 58 62
Non Mining 71 44 27
Total 191 102 89
Reasons for the Delay:
34 coal mining projects are running behind the schedule due to delay in obtaining forestry clearances and 17 are due to delay in acquisition of land and associated R&R issues. In addition, 7 projects are running behind the schedule due to delay or discontinuance of work or non-participation in tender by contractor, 1 project due to law and order problem and 3 projects due to lack of Railway Infrastructure facilities for coal evacuation.
Non Mining Projects:
Non mining projects are running behind the schedule due to discontinuance of work by contractor, law and order problem, acquisition of land and associated problems of rehabilitation and forestry clearances.
7.3 Projects Sanctioned (Costing Rs 20 Crores & above):
a) Projects sanctioned by CIL Board
8 coal mining projects for an ultimate capacity of 56.25 Mty and a total capital investment of Rs.8931.05 Crores have been sanctioned by CIL Board during the year 2016-17. The subsidiary-wise details of projects sanctioned by CIL Board in 2016-17 is disclosed in Annexure 16.
b) Non Mining Projects Sanctioned by CIL & Subsidiaries Board:
No Non-mining projects have been sanctioned by CIL & Subsidiaries Board during the year 2016-17.
Sl. No. Project Subsidiary Date of Approval Sanctioned Capital (Rs. Crores)
c) Projects Sanctioned by Subsidiary Company Boards:
11 coal mining projects for an ultimate capacity of 16.74 Mty and capital investment of Rs.3427.26 Crores have been sanctioned by Subsidiary Coal Companies during the year 2016-17. The subsidiary-wise details of projects sanctioned by their Board in 2016-17 are disclosed in Annexure 16.
7.4 Revised Project/RCE Sanctioned by CIL Board:
a) RCE/RPR/UCE sanctioned by the CIL Board during the year 2016-17: -
Project Subsidiary Date of Approval (Mtpa) Sanctioned Capacity Sanctioned Capital (Rs. Crores)
Khottadih OCP ECL 03.05.16 1.5 60.10
b) RCE/RPR/UCE sanctioned by the Subsidiary Boards:-
Project Subsidiary Date of Approval (Mtpa) Sanctioned Capacity Sanctioned Capital (Rs. Crores)
Sarapali OC RCE SECL 04.09.2016 1.40 143.63
Jaganathpur OC RCE SECL 25.07.2016 3.00 459.59
Total 4.4 603.22
7.5 Key Strategies:
(i) Critical Railway Links:
In order to achieve the planned growth in production and evacuation in future, CIL has undertaken three major Railway Infrastructure Projects, implemented either by Railways or JV Companies formed with IRCON representing Railways, Subsidiary Company representing CIL and concerned State Government.
The three major Railway Infrastructure Projects are:
1. Tori- Shivpur-Kathotia New BG Line
2. Jharsuguda- Barpali- Sardega Rail Link
3. East Rail Corridor and East- West Rail Corridor
Tori- Shivpur railway line is catering to North Karanpura Area of CCL. It is planned to evacuate about 32 MTY of coal. Jharsuguda-Barpali- Sardega Rail Link is Catering to the coalfields of MCL. This Rail line shall evacuate 70 MTY of coal from the coalfields of MCL. The evacuation of coal of Mand- Raigarh and Korba - Gevra Coalfields of SECL, shall be through East Rail Corridor and East- West Rail Corridor respectively. In all, about 180 MTY of coal shall be evacuated through these two corridors.
(ii) Acquisition and Possession of land:
In all subsidiaries of Coal India, the major portion of land is acquired under the Coal Bearing Areas (Acquisition & Development) Act, 1957. During 2016-17, notification under section 9 (1) has been issued for 3086.69 Ha and notification under section 11 (1) has been issued for 4196.69 Ha.
During 2016-17, 3826.19 Ha of land has been taken into possession in various subsidiaries of Coal India.
(iii) WEB Based Online Monitoring System:
Web based online monitoring of coal mining projects costing more than Rs 100 Crs has been introduced in Coal India. Exercise for 69 projects costing more than Rs 150 Crs and capacity 3.0 Mty and above have so far been completed during the year 2016-17.
Additionally, monitoring of 67 coal mining projects costing more than Rs 150 Crores with Project monitoring software MS Project has also been started in Coal India Limited during the year 2016-17.Crucial issues are also being uploaded by CIL and its subsidiary companies on MOC e-CPMP portal and MOC is vigorously following up with the state governments and other associated ministries by holding meetings with concerned officials to expedite EC & FC approvals.
7.6 STEPS TAKEN TO ACHIEVE ONE BILLION COAL PRODUCTION IN 2019-20
One Billion Tonne (Bt) production essentially is a synergic effort with coal bearing states and railways to access the resources and speed up logistics for coal evacuation.
Coal India has decided to put its best foot forward with the help of all concerned agencies and take its production into higher growth trajectory. Contribution from identified projects will be 908 Million Tonnes (Mt) and identification of projects for the balance quantity is in progress.
Group wise Production from Projects
Existing coal projects are envisaged to contribute about 165 Mt, projects under implementation are likely to contribute 561 Mt. Future projects are planned to produce 182 Mt during the year 2019-20.
Contribution from Subsidiaries
Projected contribution from MCL and SECL will be to the tune of 250 Mt and 240 Mt respectively during the year 2019-20. Production contribution from the rest of the subsidiaries during the year 2019 - 20 have been projected as under: -
Eastern Coalfields Limited - 62 Mt
Bharat Coking Coal Limited - 53 Mt
Central Coalfields Limited - 133 Mt
Northern Coalfields Limited - 110 Mt
Western Coalfields Limited - 60 Mt
The dream of providing 1Bt of coal (qualitatively & quantitatively) to the Nation will be achieved only through the concerted efforts of CIL, Railways and State Governments. Three critical railway lines, mechanization through latest technology, upgrading skills of employees, speedy acquisition of land, expeditious environmental and forest clearances and fast track state level clearances are crucial for realization of 1 Bt coal production by CIL.
(I) Technology Development
a. Exploration capacity is planned to be augmented with more use of hydrostatic drills, geophysical loggers, 2D/3D Seismic Survey Technology and Optimization of number of coring boreholes based on the complexity of geology of the block.
b. Introduction of high capacity equipment, Operator Independent Truck Dispatch Systems, Vehicle Tracking System using GPS/GPRS, CHP and SILOS for faster loading and monitoring using laser scanners have been planned to augment coal production from opencast mines.
c. Introduction of Continuous Miner Technology on large scale, Long Wall Technology at selected places, Man Riding system in major mines and Use of Tele - monitoring techniques have been envisaged to increase production from underground mines.
(II) Role of HR
Driving CIL Corporate Vision by building capabilities, creating performance culture & developing talent pool.
(III) System Improvements
Introduction of e-procurement of equipment and spares, e-tender of work and services, implementation of Coal Net, establishment of connectivity, revision of guidelines and manuals, use of GPS for monitoring operational efficiency in road transport of coal have been planned to improve the overall system.
8. CONSERVATION OF ENERGY
Conservation of energy always remains a priority area and CIL/Subsidiaries have undertaken various measures towards reduction in specific energy consumption.
Even though Coal Production had increased by 2.9% in 2016-17 compared to 2015-16, electricity consumption has however reduced to 4886.83 Million Units vis-a-vis 4971.13 Million Units during 2015-16 with a reduction of 1.7% in absolute terms. Specific Power Consumption (kWh/T) during 2016-17 is 8.82 kWh/T vis-a-vis 9.23 kWh/T during 2015-16 with a reduction of 4.42%. CIL/Subsidiaries endeavor to maintain this trend of reduction in specific power consumption (kWh/T) every year with reference to previous year.
Some of the salient measures taken by CIL/Subsidiaries for energy conservation are as under :-
- CMPDIL HQ has undertaken energy conservation studies in 2016-17 and carried out Diesel Audit & Benchmarking of specific diesel consumption as well as Electrical Audit & Benchmarking of specific electrical energy consumption in various opencast and underground mines situated in different subsidiaries of Coal India Limited by Bureau of Energy Efficiency (BEE) accredited Energy Auditors.
Diesel Audit and Benchmarking carried out by CMPDIL in 71 opencast mines in different subsidiary companies revealed an aggregate saving of approximately 16750 kilo litre/year in diesel consumption.
These 71 opencast mines are selected having composite capacity (Coal+OB) of 1.0 mill.cub.m or more in ECL, 2.0 mill.cub.m or more in BCCL, WCL, CCL and 5.0 mill.cub.m or more in NCL, SECL and MCL respectively.
Likewise, Electrical Audit and Benchmarking carried out in 08 mines (07 opencast mines and 01 underground mine) revealed an aggregate saving of approx. 110 million units/year.
- MoU has been signed between CIL (Coal India Limited) and EESL (Energy Efficiency Services Limited) on 08.02.2016 for implementation of Energy Efficiency Projects in CIL and its Subsidiaries.
- Accordingly, high watt luminaries / conventional light fittings are being replaced with low power consuming LEDs (of appropriate wattage) in majority of the places for street lighting, Office and other work places, townships etc., thereby creating huge saving potential in electricity consumption. Around 64000 LED Lights have been fitted (new + replacement) in CIL/Subsidiaries for better conservation of energy.
- Air Conditioners (AC) and Refrigerators of 5 Star Rating are procured against replacement of old conventional ACs and refrigerators. Use of Super Energy Efficient Air Conditioners (AC) are also being explored at places having technical capability of saving energy 30% more than the 5 star-rated ACs.
- Energy audit of selected mines / office buildings conducted by CMPDIL / External Agency.
- Installation of power capacitors of appropriate kVAR rating to maintain higher power factor to avail maximum benefit on power factor incentive from power supply agency as well as reduction in Maximum Demand. Aggregate Power Factor maintained at CIL subsidiaries is as high as 95% during 2016-17.
- Auto timer based on-off switches in most of the street lighting / CHPs and township areas to ensure avoiding unnecessary power consumption during odd hours thereby saving in electricity consumption.
- Construction of strata bunkers in underground (UG) mines to eliminate idle running of belt conveyors thereby saving electricity.
- Re-organization of LT (Low Tension) overhead line by Aerial Bunched Cable to avoid unauthorized power tapping.
- Monitoring of load pattern and demand side management of supply points limiting maximum demand wherever practicable by staggering avoidable load from peak hours to off-peak hours.
- Elimination or reduction of stage pumping as far as practicable.
- Re-organization of power distribution system.
- Power supply to underground mines by laying cables directly through bore holes wherever feasible.
The above measures are indicative and not exhaustive.
(ii) In addition to above, CIL / Subsidiary Companies are also pursuing use of alternative energy sources. Various steps have been taken for utilizing solar power as alternate sources of energy, some of which are as stated below :
- In kilo-watt scale, roof top solar plants are in successful operation at various places since their commissioning. Such plants are in operation at Corporate Office of Coal India Ltd, New town, Kolkata (160 kWp), CMPDI HQ, Ranchi (190 kWp), CMPDIL RI-VI, Singrauli (50 kWp), CMPDIL RI-II, Dhanbad (50 kWp), Sodepur (5 kWp) and Bankola (30 kWp) at ECL, Central Repair Shop, Barkakana (25 kWp) at CCL, Nagpur Area (80 kWp) and Ballarpur area (60 kWp) at WCL respectively.
- In megawatt scale, one ground-mounted solar power plant (2.016 MWp) is in operation at MCL HQ since it is commissioning on 13.10.2014.
- In CCL, work order for solar power plant of capacity 400 kWp on the roof top of Darbhanga House, CCL HQ, Ranchi has already been issued to M/s BHEL. Another such plant of capacity 50 kWp has been approved for Kathara Area on the roof top of Executive Hostel Building. Plant of capacity 80kwp has been aprroved for CMPDIL RI-I office building at Asansol.
- In kilo-watt scale, roof top solar power plants have been identified for their commissioning at ECL (aggregate capacity: 60 kWp), MCL (150 kWp) and CMPDIL RI-VII (60 kWp) respectively.
- In mega-watt scale, WCL has planning for installation of 1.257 MWp and 50 MWp solar power projects.
9. CAPITAL EXPENDITURE
Overall Capital Expenditure during 2016-17 was Rs.7700.06 crores as against Rs.6,123.03 crores in previous year. Capital Expenditure incurred during 2016-17 is 99.16% of BE (102.21% in 2015-16). Subsidiary-wise details of which are given in Annexure 17.
10. CAPITAL STRUCTURE
The authorized share capital of the company as on 31.03.2017 was Rs.8904.18 crores, distributed between Equity and Non-cumulative redeemable preference shares as under:
(i) 800,00,00,000 Equity Shares of Rs.10/- each (Previous Year 800,00,00,000 Equity Shares of Rs.10/- each) Rs.8000.00 crores
(ii) 90,41,800 Non-cumulative 10% redeemable Preference Shares of Rs.1000/- each (Previous Year 90,41,800 Non-cumulative 10% Redeemable Preference Shares of Rs.1000/- each) Rs.904.18 crores
Total Rs.8904.18 crores
Listing of shares of Coal India Limited in Stock Exchanges:
The shares of Coal India Ltd. is listed in two major stock exchanges of India, viz. Bombay Stock Exchange and National Stock Exchange on and from 4th November, 2010.
The details of disinvestment of shares by Govt. of India is furnished below:
Sl No Financial Year of Disinvestment % of shares disinvested No. of shares disinvested Mode
1 2010-11 10.00% 63,16,36,440 IPO
2 2013-14 0.35% 2,20,37,834 CPSE-ETF
3 2014-15 10.00% 63,16,36,440 OFS
4 2015-16 0.001% 83,104 CPSE-ETF
5 2016-17 1.248% 7,88,42,816 Buyback
6 2016-17 0.92% 5,71,56,437 CPSE-ETF
Hence, the number of shares held by Govt. of India as on 31.03.2017 is 4,89,49,71,329 i.e.78.857% of the total 6,20,74,09,177 number of shares (earlier year 5,03,09,70,582 i.e. 79.649% of total number of shares).
During the year the company has not issued any shares. However, pursuant to Public Announcement (PA) published on August 30,2016 and letter of offer dated September 23,2016, the company has bought back its 10,89,55,223 number of equity shares of face value of Rs.10/- each fully paid up through tender offer route under Stock Exchange mechanism and extinguished these shares on October 28,2016. Post such buyback, the number of fully paid equity shares as on stands at 6,20,74,09,177.
Pursuant to above, the shareholding pattern in CIL stood as follows:
As on 31.03.2017 As on 31.03.2016
Shareholding Pattern (%) Share Capital (Rs Crore) Shareholding Pattern (%) Share Capital (Rs Crore)
Government of India 78.857 % 4894.97 79.649 % 5030.97
Other Investors 21.143% 1312.44 20.351% 1285.39
Total 100.000% 6207.41 100.000% 6316.36
During the year 2016-17, three subsidiaries of CIL viz. NCL, SECL and MCL have bought back its shares from CIL. The details of such buy back are as follows:-
Name of the Subsidiary NCL SECL MCL
No. of Shares brought back by subsidiary 411135 609250 451743
Buy back Price Rs.30260.70 Rs.19699.47 Rs.35796.02
Consideration received by CIL Rs.1244.12 crore Rs.1200.19 crore Rs.1617.06 crore
No. of Shares held by CIL post buy back 1365593 2987750 1412266
Aggregate borrowings including both current & non-current of CIL stood at Rs.410.77 crores in 2016-17 from Rs.269.76 crores in 2015-16, as detailed below.
Figures in Rs. Crores
Particulars 2016-17 2015-16
Foreign Loans including deferred credits
- EDC Canada 167.2 174.14
- Liebherr France SA., France 6.64 7.77
- IRCON International Ltd. 171.44 63.92
Chattisgarh State Infrastructure Development Corpn Ltd. 65.49 23.93
TOTAL 410.77 269.76
In addition to the above Short term Borrowings of CIL stood at Rs.2603.81 crores in 2016-17 from Rs.929.03 crores in 2015-16, as detailed below.
Figures in Rs. Crores
Particulars 2016-17 2015-16
Loan repayable on demand
- From Banks 2603.78 929.00
- From Other Parties 0.03 0.03
TOTAL 2603.81 929.03
The debt servicing has been duly met in case of the loans / deferred credits whenever due.
The subsidiary companies of SECL M/s Chhattisgarh East Railway Limited (CERL) & M/s Chhattisgarh East-West Railway Limited (CEWRL) have taken loan from IRCON International Ltd and Chhattisgarh State Infrastructure Development Corpn Ltd. with repayment period of 5 years excluding moratorium period not exceeding 5 years from the date of signing of Loan Agreement.
12. INTERNATIONAL CO-OPERATION
Coal India is envisaged for foreign collaboration with a view to:
- Bring in proven and advanced technologies and management skills for exploiting UG and OC mines, coal preparation and related activities.
- Exploration and exploitation of Methane from Coal bed, abandoned mine, ventilation air, shale gas, coal gasification, etc.
- Locating overseas countries interested in Joint Venture in the field of coal mining with special thrust on coking coal mining.
The priority areas included acquisition of modern and high productive underground mining technology, introduction of high productive opencast mining technology, improvement in working in underground in difficult geological conditions, fire control and mine safety, coal preparation, application of 3D seismic survey for exploration , extraction of coal bed methane, coal gasification, application of Geographical Information System, satellite surveillance, subsidence monitoring, environmental control, overseas ventures in coal mining.
CIL aims to acquire suitable technology through international bidding. Bilateral cooperation is also being encouraged for locating availability of cost effective and latest technologies in the aforesaid areas. CIL, therefore, has been following both the routes.
Following are the details of activities that took place with various countries during 2016-17.
FOREIGN COLLABORATION Indo-US Collaboration: Status of On-going Projects: a) Development of Coal Preparation Plant Simulator
M/s Sharpe International LLC, USA (SI) was awarded the work in October 2009 for development of a Coal Preparation Plant Simulator. Total work was split into 18 activities out of which 11 activities were completed and payment to the tune of 40% value had been released in line with provision of the contract. Later in October 2013, SI expressed their inability to complete the work. US representatives were requested to take up the matter with M/s Sharpe for a meaningful conclusion of the project. US side advised to contact Mr. Carl Jacobson in this regard.
Consequently, Mr. Carl Jacobson was contacted for submission of a proposal for execution of the project within the framework of existing agreement. From perusal of the proposal submitted by him, it was noted that M/s Coal Sim was responsible for the development of software based on the mining engineering expertise provided by Mr. Mark Sharpe. The issue is being examined for meaningful conclusion.
Further, Mr. Manoj Mohanty from Southern Illinois University Carbondale, USA vide his email dated 08.01.2016 expressed desire ?to complete the project that SI could not complete?. Mr. Mohanty was requested to submit his proposal through US DoE and MoC, as the project was identified under Indo-US Coal Working Group work plan. Subsequently, a proposal from Mr. Mohanty was received through US DoE and MoC, GoI. Comments of CMPDI in this regard were sent to Advisor (Projects), MoC on 03.10.16 and also to Mr. Smouse Scott of DoE on 27.10.2016.In response to the queries raised by Dr. Mohanty of SIU (vide e-mail dated 07.11.2016 forwarded by Dr. Scott Smouse of US DOE), suitable reply has been sent on 23.11.2016.
On 22.12.2016, Dr. Scott Smouse of US DOE sent reply indicating project direct cost for the subject assignment with Power Plant economics increased substantially to US$ 3,50,000 plus additional 47.5% charge on the project direct cost as research overhead expenses.
CMPDI vide email dated 09.01.2017 requested Dr. Scott Smouse to look into the matter and asked Dr. Mohanty to respond accordingly so that the final proposal can be prepared and submitted at the earliest with due consideration to fund limitation as the balance fund left in the project is US$ 225,000. Necessary reply in this regard is awaited.
b) Cost Effective Technology for Beneficiation and Recovery of Fine Coal
US DOE had identified Virginia Tech University (VTU) for establishing an efficient technique for beneficiation & dewatering of Indian coking coal mines through the testing of coal samples in lab and pilot plants at VTU for identification of state-of-the-art technologies based on which a demonstration plant was to be installed in Sudamdih Washery in BCCL. A joint project proposal was drawn and approved by CIL R&D Board in Dec, 2010. The VTU, however, expressed its inability to sign an international agreement and as such the project could not be started.
During the 10th Indo-US CWG meeting in New Delhi on 10.03.2014, US representatives were requested to take up the matter with VTU for meaningful conclusion of the project. US side had advised to contact Dr. Roe Hoan Yoon of Virginia Tech for further discussion in this regard. Subsequently the issue was taken up with Dr. Roe Hoan Yoon to obtain methodology for execution of the assignment.
On perusal of the correspondences made with Dr. Yoon, it is observed that VTU is not in a position to associate in the project in accordance with the methodology of the approved project. The issue is being examined for meaningful conclusion.
Further, Dr. Yoon vide e-mail dated 08.01.2016 informed that VTU had developed HHS process for fine Coal Cleaning and would be submitting a proposal on the same. However, since the project was identified under Indo-US Coal Working Group work plan, Dr. Yoon was requested to route his proposal through US DoE and MoC. Further, the matter has been followed up from CMPDI''s end. Reply is awaited from Dr. Yoon.
Meanwhile, Shri R B Mathur, President, Business Development & Mining Strategy, Virginia Mining Resources Pvt. Ltd. (VMR) submitted, vide his email dated 09.05.2016, that VMR is a sister concern of Minerals Refining Company (MRC) which is associated with Dr. Yoon in development of Hydrophobic-Hydrophilic Separation (HHS) Technology. He expressed to undertake a pilot project on HHS Technology under S&T Programme in India. He was requested vide email dated 20.05.2016 that a proposal should be sent to this office with details of HHS Technology, its availability and cost etc. for initiating appropriate action.
Subsequently, a Proposal titled ?Application of the Hydrophobic-Hydrophilic Separation (HHS) Process for the Beneficiation of Indian Coals? from M/s MRC was received through US DoE and MoC, GoI. Comments of CMPDI in this regard has been sent to Advisor (Projects), MoC on 07.10.16 and also to Mr. Smouse Scott of DoE on 27.10.2016 stating the following:
- The promotor of HHS technology may be requested to submit a project proposal for ?Design of a POC-Scale Plant?. The proposal would initially include the setting up of a POC-Scale Plant at CMPDI(HQ), Ranchi (in Stage-I) to compare yield of different types of Indian coal in HHS process with that obtained through conventional floatation scheme.
- Based on the findings of the study carried out in Stage-I, the technology may be implemented in Stage-II for ?Conceptual Design of a Demonstration Plant?.
In the meantime, Shri R.B. Mathur, vide e-mail dated 21.11.2016, submitted a revised proposal with incorporation of the PROPOSED BUDGET BY TASK, i.e. the total cost of involvement of US side is USD 1,508,312 as indicated earlier, has been split into different tasks which is related to lab scale testing and consultancy servi