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ANNUAL REPORT

2006-2007
GOVERNMENT OF INDIA MINISTRY OF COAL

http://coal.nic.in

CONTENTS
CHAPTER
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 THE YEAR 2006-2007 ORGANIZATION COAL COMPANIES AND NEW M INING POLICY COAL EXPLORATION PLANNING AND ROAD M AP FOR COAL SECTOR COAL PROJECTS AND LAND M ANAGEMENT COAL PRODUCTION, DISTRIBUTION & M ARKETING ROYALTY COAL CONSERVATION, UTILISATION AND RESEARCH AND DEVELOPMENT PERSONNEL AND INDUSTRIAL RELATIONS EMPLOYEES WELFARE AND SOCIAL SECURITY SCHEMES M EASURES TAKEN FOR IMPROVEMENT OF SAFETY DEVELOPMENT ACTIVITIES IN NORTH EAST NEYVELI LIGNITE CORPORATION LIMITED INTERNATIONAL CO -OPERATION PROGRESSIVE USE OF HINDI PROGRESS OF INFORMATION TECHNOLOGY IMPLEMENTATION VIGILANCE ACTIVITIES AND ACHIEVEMENT GENDER ISSUES AUDIT PARAS

TITLE
AT A GLANCE

PAGE No.
1 9 19 28 47 58 64 71 75 97 111 119 127 131 150 158 161

18 19 20

164 171 175

ANNEXURES

Sl. No 1

Title List of coal projects sanctioned by CIL & its subsidiaries and SCCL under delegated power from 01.04.2006 to 31.12.2006. (Annexure-6A) Status of ongoing projects costing Rs.20 crores and above in the coal/Lignite sector as on 31.12.2006. (Annexure -6B) Significant statistics about Coal and Lignite (Annexure-7A) Company-wise coal production during last five years (Annexure-7B) Company wise coal despatches and vendible stocks during last five years(Annexure-7C) Output per manshift in underground and opencast mines in Coal India Ltd. and in Singareni Collieries Company Ltd. for last five years(Annexure-7D) Performance of washeries/washed coking coal production during the last five years (Annexure-7E) Consumer-wise offtake of coal from Coal India Ltd., Singareni Collieries Company Ltd. and others for last five years (Annexure-7F) All India figures of production, despatch and stock of coal upto December 2006 (Annexure-7G) Transport of coal products (excluding coal used for colliery consumption) (Annexure-7H) Housing (Annexure-11A) Water supply (Annexure-11B) Set up of the vigilance organisation (Annexure-18A) Details of vigilance cases taken up for investigation inquiry, etc. During 2006-07 (upto December, 2006) (Annexure -18B)

Page 197

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213 215 216

217

218

222

223

10

224

11 12 13 14

225 226 227 228

CHAPTER 1
THE YEAR 2006-07 AT A GLANCE
PREAMBLE 1.1. The Ministry of Coal is headed by the Honble Prime Minister with effect from 29.11.2006 as Shri Shibu Soren relinquished the charge of the office of Minister of Coal. Dr. Dasari Narayana Rao is the Minister of State in the Ministry of Coal. 1.2. The Ministry of Coal has the overall responsibility of determining policies and strategies in respect of exploration and development of coal and lignite reserves, sanctioning of important projects of high value and for deciding all related issues. These key functions are exercised through its public sector undertakings, namely, Coal India Limited(CIL) and Neyveli Lignite Corporation (NLC) Limited and Singareni Collieries Company Limited(SCCL), which is a joint sector undertaking of Government of Andhra Pradesh and Government of India with equity capital in the ratio of 51:49 1.3. The coal reserves of India up to the depth of 1200m, have been estimated by the Geological Survey of India at 255.17 billion tonnes as on 1.1.2007. 1.4. Currently, lignite reserves in the country have been estimated at around 38274 million tonnes, most of which, occur in Tamilnadu. Other states where lignite deposits have been located are Rajasthan, Gujarat, Kerala, Jammu and Kashmir and Union Territory of Pondicherry COAL PRODUCTION 1.5 Coal production achieved in the country (excluding Meghalaya) during the year 2006-07 (April-December, 06) has been 295.148 million tonnes (provisional) as compared to the production of 282.424 million tonnes achieved during same period of the previous year i.e. 2005-06 showing a growth of 4.50%. Company-wise details are given below: Company Target 2006-07 (April-December) 257.367 27.734 17.857 302.958 Actual Production * (2006-07) (April-December) 250.073 26.097 18.978 295.148 (In million tonnes) Actual Production (2005-06) (April-December) 241.721 24.537 16.166 282.424

CIL SCCL OTHERS TOTAL *Provisional (figures excluding Meghalaya)

-1Ministry of Coal-Annual Report: 2006-07

1.6 About 86% of the total coal production in the country comes from the collieries of Coal India Ltd. CIL is also the biggest supplier of coal in the country. DEMAND AND SUPPLY 1.7 During the year 2006-07 (April-December, 2006), CIL and SCCL supplied the following quantities of coal to various consumers: COAL INDIA LTD. Sector Power Steel Loco Cement Fertilizer Others Colly.Cons. Total Target Offtake 198.419 (1.913) 8.822 0.001 7.517 1.629 48.760 0.794 265.942 (Million Tonnes) (Provisional) Actual Offtake Supply % against Target 190.725 96.12 (1.450) (75.7) 6.643 75.3 0.00 0.00 7.019 93.3 2.307 141.60 48.163 98.77 0.638 80.35 255.495 96.07

(figures in bracket indicate middlings) SINGARENI COLLIERIES COMPANY LTD. Sector Target Offtake Power 20.19 Steel (Sponge 0.79 Iron) Cement 3.56 Fertilizer 0.00 Others 2.83 Colly.Cons. 0.09 Total 27.46 Production and Supply during 2006-07. 1.8 The demand of coal assessed by the Planning Commission during the year 2006-07 is 474.18 MT and the anticipated coal production and supply of coal during the current years by CIL, SCCL and others are given below:Actual Offtake 18.38 0.52 3.92 0.00 3.32 0.10 26.24 (Million Tonnes) (Provisional) Supply % against Target 91 65 110 0.00 118 114 96

-2Ministry of Coal-Annual Report: 2006-07

Name of the Coal Company

Target of coal production (April 2006March 2007) 363.80 37.40 28.80

Coal India Ltd. SCCL Others Long-Term Linkages

Anticipated Coal Production (April 2006March 2007) 355.00 37.00 28.00

(Figures in Million Tonnes) Target of Coal Anticipated Supply (April Coal Supply 2006-March (April 20062007) March 2007) 366.088 37.500 28.00 366.088 37.500 28.80

1.9 During the year 2006-07 two meetings of Standing Linkage Committee (Long Term) were held. The committee recommended to grant long-term coal linkage to various consumers making a commitment of coal to the tune of 110 MT. Details in this regard are given below:Name of the Sector Power Utilities CPPs Cement Plants/Cement CPPs IPP Sponge Iron Units Total Number of Linkage/ Quantity approved Applications approved (MTPA) 29 89.29 48 4.49 17 2.33 6 9.56 110 4.81 210 110.48

NEYVELI LIGNITE CORPORATION LIMITED (NLC) 1.10 The table below indicates the major products of the Neyveli Lignite Corporation Limited and product-wise targets for the year 2006-07, actual performance upto the end of December, 2006 and provisional for the period January, 2007 to March, 2007: Target for 2006-2007 204.00 15705 Achievement April Provisional to December 2006 January 2007 to March, 2007 139.74 54.00 10943.60 3910.00

Product Lignite LT Power Generation MU

-3Ministry of Coal-Annual Report: 2006-07

Allocation of Coal Blocks 1.11 During the year 2006-07, 35 blocks with Geological Reserve of 8886.77 MT have been allocated to private as well as public sector companies. Till date, 130 coal blocks have been allotted to Government (other than CIL & SCCL) as well as private companies. Sector-wise allocation of 130 coal blocks is given below: Sector/End Use A. Public Sector Undertakings I Power (a) Captive Dispensation (b) Govt. dispensation (c) Ultra Mega Power Project Sub-total II Commercial Mining No of blocks Geological Reserves (MT)

30 10 6 46 22 2 70

3530.48 8294.00 1635.00 13459.48 4818.08 1383.50 19661.06

III Iron and Steel Total (I+II+III) B. Private Companies (a) Power (b) Iron and Steel (c) Small, Isolated Patches (d) Cement Sub-total Grant Total State-wise allocation of Coal blocks Sl.No. 1 2 3 4 5 Sector/End use Power Iron & Steel Cement Small, Isolated Patches Commercial mining Total Total 57 48 01 02 22 130 PSU 46 02 22 70

11 46 2 1 60 130

1094.61 6604.15 9.34 7.00 7715.10 27376.16

Private 11 46 01 02 0 60

G.R.(MT) 14554.09 7987.65 7.00 9.34 4818.08 27376.16

-4Ministry of Coal-Annual Report: 2006-07

1.12 81 Additional coal blocks with reserves of about 20.02 billion tonnes were identified by the Ministry during 2006-07 for allocation to Government companies/private companies for permissible end uses. Out of these, 41 blocks, with reserves of about 15.7 billion tonnes, have been earmarked for the power sector. The blocks for the power sector, in consultation with Power Ministry, have been further categorized in 3 separate lists on the basis of method of allocations as follows:Sl.No. Method of Allocation i) ii) iii) Government company dispensation route Screening Committee route Tariff based bidding as per Ministry of Power guidelines Sub-total No. of blocks 10 15 16 41 Total Reserves (MT) 6072.15 3622.44 6015.30 15709.89

The remaining 40 blocks would be considered for allocation for the non-power sector as follows:Sl.No. Method of Allocation i) ii) Government company dispensation route Screening Committee route Sub-total TOTAL No. of blocks 17 23 40 81 Total Reserves (MT) 1847.75 2464.23 4311.98 20021.87

Coal Projects 1.13 During the year 2006-07, 10 coal projects of total capacity of 41.514 MT with a capital investment of Rs.5107.166 crores have been approved by the Government. 1.14 To reduce the gap between demand and supply of coal, 16 opencast existing mines/projects of CIL had been identified under Emergency Coal Production Plan (ECPP) for yielding an additional 71.3 MT of Coal/year. The capacity addition is over and above the identified Tenth Plan capacity addition programme. Out of 16 projects, 15 projects have been approved to yield 70.5 MT of Coal/year. Standing Committee on Safety in Coal Mines 1.15 The Standing Committee on Safety in Coal Mines is in existence under the chairmanship of Minister Incharge of Ministry of Coal with representatives from Ministry of Labour & Employment (MOL&E), Directorate General of Mines Safety (DGMS), Dhanbad, CMDs of Coal India Ltd. and its subsidiaries, SCCL, NLC, IISCO, DVC, different State Public Sector companies, coal companies in private sector and Central Trade Union Leaders as Members of this Committee. The -5Ministry of Coal-Annual Report: 2006-07

Committee examines in depth all aspects of safety in coal mines and takes stock o f safety situation in coal mines for bringing out further improvement. The Committee meets periodically and so far 29 meetings of the Committee have already been held. The 28th and the 29th meetings of the Standing Committee on Safety in Coal Mines were held on 9.5.2006 and 17.11.2006 respectively. The Committee reviewed the Action Taken Report on the recommendations of earlier meetings and discussed the Action Plan to prevent recurrence of accidents due to inundation, roof falls, explosion and other causes and different safety related issues for improving the safety and health conditions in coal mines. The Committee discussed various issues some of them are highlighted. i. ii. Amendment of Coal Mines Regulations with provisions for opencast mining should be expedited by DGMS, MOL&E. Strengthening inspection of mines by coal companies and strengthening DGMS organisation particularly in view of many private operators entering into coal mining. Safety and protective equipment like boots, helmets etc. of better quality should be provided to all workers. Meetings of internal safety committees should be held at mine, area and company level at regular intervals and such committees should be further strengthened. Zero tolerance for accidents. Expediting filling up of statutory posts in all coal companies. Switching over to better designed steel roof support system to prevent accidents from roof fall. Preparation of action plan by coal companies to prevent recurrence of accidents from inundation, mine fires, explosions roof falls, etc. Implementation of recommendations of various courts of inquiry on mine accidents. Adoption of state of the art technology and better training facilities. Proper and adequate utilisation of safety budgets by coal companies. Inspection of private mines by a group comprising of trade Union representatives, Representatives of DGMS and Ministry of Coal.

iii. iv.

v. vi. vii. viii. ix. x. xi. xii.

INTEGRATED ENERGY POLICY 1.16 The Planning Commission constituted an Expert Committee to prepare an integrated energy policy linked with sustainable development that covers all sources of energy and addresses all aspects including energy security, access and availability, affordability and pricing, efficiency and environment in August, 2004 under the Chairmanship of Dr. Kirit S. Parikh, Member, Planning Commission. The Expert Committee submitted its report in August, 2006. Major recommendations for coal sector are listed below: -6Ministry of Coal-Annual Report: 2006-07

Increasing number of Coal Producers o The number of players in coal mining should be increased. o Captive block holders must be permitted to sell incidental coal surpluses during the development and operation of a block to CIL. o Group-captive mines should be allowed for small end-users. o Coal blocks held by Coal India Limited that cannot be brought into production by 2016-17, either directly or through joint ventures, should be made available to other eligible candidates for development with the condition that they be brought into production by 2011-12. o Allottees of captive blocks in general should be required to work the block within a specified time limit failing which allotment should be cancelled and/or a pre-agreed penalty imposed. o The gestation periods for the end-use project may be different than that of the coal mine. To ensure that both the mine and the end-use project are developed in a cost-effective manner the innovative use of short-term linkages can be made. This must be linked with strictly enforced guarantees that back performance related to both the end-use project and the captive mine. o Transfer pricing of coal from captive mines needs to be established both for the sake of assessing coal royalties as well as tariffs in a regulated sector such as power. Pricing of Coal o High quality coking and non-coking coals which are exportable may be sold at export parity prices. o 20% of the total coal produced should be sold through e-auctions. o Remaining coal should be sold under long-term Fuel Supply and Transport Agreements (FSTAs). o Pithead price of coal under FSTAs should be revised annually by a coal regulator. o Replace the practice of grading coal under wide bands of the empirically determined UHV by the international practice of grading coal based on GCV. Reducing Coal Cost o o o o Rail freight rates for coal transport should be rationalized. Infrastructure status should be extended to the coal industry. Duties on capital goods imported for coalmines must be lowered. Coal companies should be required as per international practice to prepare and dress coal prior to sale.

-7Ministry of Coal-Annual Report: 2006-07

Facilitating Production o Strategies for matching the growth of infrastructure needed for movement of coal to load centres should be aligned with the growth of coal industry. o Wherever the techno-economic parameters of the geological resource demands development of underground mine, related technology must be encouraged by giving incentives. o National Rehabilitation and Resettlement Policy for people affected by coal/lignite mining projects should be mooted. Such policy should be acceptable to all state governments. o Early approval for the projects Environmental Management Plan by simplification of procedures, preparation of comprehensive EMPs and demonstration of environmental responsibility on the ground. o Notify in-situ coal gasification and coal liquefaction as end-uses under the current captive consumption policy. Regulation o Institute an independent regulatory body to regulate upstream allotment and exploitation of available coal blocks to yield coal, coal bed methane, mine mouth methane, coal to liquid and for in-situ coal gasification. The follow up action on most of the recommendations pertaining to Ministry of Coal has already been initiated. ----- x ----- x ----- x -----

-8Ministry of Coal-Annual Report: 2006-07

CHAPTER 2
ORGANISATION
FUNCTIONS OF MINISTRY OF COAL 2.1. The Ministry of Coal is responsible for development and exploitation of Coal and Lignite reserves in India. The subjects allocated to the Ministry under the Government of India (Allocation of Business) Rules, 1961, as amended from time to time are as follows: i) ii) iii) iv) v) vi) vii) viii) Exploration and development of coking and non-coking coal and lignite deposits in India. All matters relating to production, supply, distribution and prices of coal. Development and operation of coal washeries other than those for which the Ministry of Steel is responsible. Low Temperature carbonisation of coal and production of synthetic oil from coal. Administration of the Coal Mines (Conservation and Development) Act, 1974 (28 of 1974). The Coal Mines Provident Fund Organisation. Administration of the Coal Mines Provident Fund and Miscellaneous Provision Act, 1948 (46 of 1948). Rules under the Mines Act, 1952 (32 of 1952) for the levy and collection of duty of excise on coke and coal produced and despatched from mines and administration of rescue fund. Administration of the Coal Bearing Areas (Acquisition and Development) Act, 1957 (20 of 1957). Administration of the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957) and other Union Laws in so far the said Act and Laws relate to coal and lignite and sand for stowing, business incidental to such administration including questions concerning various States.

ix) x)

2.2. At the Secretariat level, the Ministry is headed by a Secretary who is assisted by one Additional Secretary, three Joint Secretaries (including the Financial Advisor), one Project Advisor, one Economic Advisor, five Directors, three Deputy Secretaries, Nine Under Secretaries, eighteen Section officers, One Assistant Director (Official Language), one Deputy Controller of Accounts, two Senior Accounts Officers and four Assistant Accounts Officers and their supporting staffs.

-9Ministry of Coal-Annual Report: 2006-07

PUBLIC SECTOR COMPANIES 2.3. The Ministry of Coal has under its administrative control, Coal India Limited (CIL), a Public Sector Undertaking with its eight (8) subsidiary companies namely:1. 2. 3. 4. 5. 6. 7.
8.

Bharat Coking Coal Limited (BCCL) Central Coalfields Limited (CCL) Eastern Coalfields Limited (ECL) Western Coalfields Limited (WCL) South Eastern Coalfields Limited (SECL) Northern Coalfields Limited (NCL) Mahanadi Coalfields Limited (MCL) Central Mine Planning and Design Institute Limited (CMPDIL)

2.4. Coal India Limited with its headquarters at Kolkata, is the apex body in the Coal Industry and is responsible for laying down policy guidelines and coordination work of subsidiaries. It does the investment planning, manpower management, financial budgeting etc. on behalf of all its subsidiaries (Details about the subsidiaries are mentioned in Chapter-3). 2.5. The Ministry of Coal has also under its administrative control the Neyveli Lignite Corporation Limited (NLC), with registered office at Chennai and corporate office at Neyveli in Tamil Nadu. The company is engaged in exploitation and excavation of lignite, generation of thermal power and also sale of raw lignite.
SUBORDINATE OFFICES AND AUTONOMOUS ORGANIZATION

2.6. The following subordinate offices and autonomous organizations are under the administrative control of this Ministry:i) ii) iii) Office of the Coal Controllers Organization - a subordinate office. Office of the Commissioner of Payments - a subordinate office. Coal Mines Provident Fund Organization - an autonomous organization.

COAL CONTROLLER'S ORGANISATION(CCO) 2.7 The Coal Controller's Organisation is a subordinate office of Ministry of Coal, having its headquarters at Kolkata and field offices at Dhanbad, Ranchi, Bilaspur Nagpur and Kothagudem. The Coal Controller discharges various statutory functions derived from the following statutes: i) ii) The Colliery Control Order, 2000 and the Colliery Control Rules, 2004. The Coal Mines (Conservation and Development) Act, 1974 and the Coal Mines (Conservation & Development) Rules, 1975.

2.8

- 10 Ministry of Coal-Annual Report: 2006-07

iii) iv) 2.9

The Collection of Statistics Act, 1953 (32 of 1953) and the Collection of Statistics (Central) Rules, 1959. The Coal Bearing Areas (Acquisition & Development) Act, 1957 (20 of 1957).

Apart from the above, the Coal Controller has also been assigned some functions under the Mines and Minerals (Development & Regulations) Act, 1957. In addition, the Coal Controller is also assigned the following functions : i) To look after the residual work of the erstwhile Coal Board. ii) To attend to the legal matters/court cases arising out of various statutes administered by the Coal Controller. The Coal Controller's Organisation performed the following main functions during the period from April 2006 to December 2006: Grant of permission for opening and reopening of seams/mines

2.10

2.11 (A)

2.12 Under Clause 9 of the Colliery Control Order, 2000, the Coal Controller granted permission for opening and re-opening of 26 seams/mines (including 2 lignite mines) during the period April, 2006 to December, 2006. (B) Conservation and utilisation of excise duty under the Coal Mines (Conservation & Development) Act, 1974

2.13 The Coal Mines (Conservation & Development) Act, 1974 was enacted by the Parliament in August 1974, repealing the earlier Coal Mines (Conservation, Safety & Development) Act, 1952, soon after the nationalization of coal industry with the objective of providing for conservation of coal and development of coal mines in the country. The Act mandates the need of assistance as reimbursement to the coal companies for encouraging coal production from depillaring panels in conjunction with stowing into the voids in under ground (UG) mines and various protective measures and also for construction of roads and railway infrastructure, research and development activities etc. CM(C&D) Rules, 1975 determine the mode and field of such assistance. Assistance is given principally through the following stages: i) Creation of fund through collection of stowing excise duty (SED); and ii) Disbursement of the said fund as reimbursement against actual claims raised by the coal companies. This is a subsidizing arrangement basically towards meeting recurring type of expenditure incurred by coal companies for conservation of coal.

2.14 The Coal Controller collects stowing excise duty on al1 raw coal produced and despatched from all the collieries in India. SED is realized from the consumers along with the coal sale bills raised by the coal companies. Current rate of SED is Rs.10.00 per tonne of coal irrespective of its grade with effect from 26.06.2003. - 11 Ministry of Coal-Annual Report: 2006-07

2.15 Section 9 of the CMCD Act, 1974 empowers the Central Government to disburse, in each financial year, a sum not exceeding the net proceeds from SED collection during the preceding year or years to the owners, agents or the managers for execution of stowing and other operations for the safety in coal mines or conservation of coal, research work connected with the conservation of coal or development of coal mines and any other purpose connected with the conservation of coal or development of coal mines or transportation, distribution or utilization of coal and also to study implementation of different surface protection measures in the coal mining areas. It has also been decided to expand the ambit of funding for action plan to deal with fire and subsidence in ECL and BCCL areas. 2.16 Accordingly, in each financial year, a part of SED so collected and deposited in the Union Government fund is disbursed by the Central Government to different coal companies for undertaking R&D, stowing, protective works and infrastructure development. 2.17 For the purpose of determining the procedure for disbursement of net proceeds under section 9 of CM(C&D) Act, 1974 and the manner in which sums at the credit of the CM(C&D) Account may be applied, the Central Government, in exercise of powers conferred by sub-rules (1) and (2) of Section 10 of the CM(C&D) Rules, 1975, constituted an Advisory Committee called the Coal Conservation and Development Advisory Committee" (CCDAC). Rule 12 of the CMCD Rules, 1975 provides for disbursement of duties of excise lying in credit with the Government on the recommendations of CCDAC. 2.18 CCDAC advises the Government regarding formulation and implementation of national policy in relation to conservation development and scientific utilization of coal reserves of the country, rates of SED, disbursement of SED proceeds to different coal companies etc. The CCDA Committee has the power to regulate its own procedure and thus is a statutory body with powers conferred on it for implementing CCDA related activities under the Act. 2.19 During the period from January, 2006 to December, 2006 the CCDA Committee met twice i.e. on 10.02.2006 (59th meet) and 21.12.2006 (60th meet) in the office of the Coal Controller for approval of new applications and recommended the claims of ongoing schemes to the Union Government for reimbursement towards stowing, protective works and construction of roads and rail infrastructure pertaining to the period from April 2005 to September, 2005 (59th meet) and the period from October, 2005 to June, 2006 (60th meet). CCDA fund is usually released in phases during each financial year to reimburse the claims admitted by the Committee covering the yearly period of last half-year of previous year and the first half-year of current year. Sometimes the fund available in a year becomes in-adequate to meet the actual yearly claim. In such cases, the balance claims spill over to the next financial year. In the instant case, the spill over claims of 2005-06 and also the first nine months' claims of 2006-07 i.e. October 2005 to June 2006 await release from RE 2006-07. - 12 Ministry of Coal-Annual Report: 2006-07

2.20

RE for 2006-07 and BE for 2007-08 for CCDA fund requirement (figures in Rs. crore) RE 2006-07 RE 2006-07 BE 2007-08 BE 2007-08 (proposed) (under (Proposed) (under consideration) consideration) 1. R&D, Stowing, 205.00 180.00 135.00 0.01** Protective works 2. Development of 40.00 13.81* 75.00 0.01** Road & Rail 3. CIL's Master 0.00 0.00 60.00 Action Plan ----------------------------------------------------------------------Total 245.00 193.81 270.00 ----------------------------------------------------------------------* The amount of Rs. 13.81 crore as indicated above may be enhanced to Rs. 26.94 crore subject to exemption from making 10% provision for the development of NE Region allowed by the Ministry of Development of NE Region. ** In BE 2007-08, a token provision of Rs. 0.01 crore has been made for each of the two schemes pending decision of Ministry of Finance/Planning Commission for funding of these two schemes as Plan or Non Plan. 2.21 The 60th meeting of CCDA Committee held on 21.12.2006 in the Office of the Coal Controller, Kolkata recommended for reimbursement of various claims of coal companies for the period of October 2005 to June 2006. The rest three months claims (July, 2006 to September, 2006) will be considered in the ensuing 61st meet. 2.22 These claims including the spill over of 200506 are awaiting release from RE 2006-07 as detailed below: (figures in Rs. crore) Spill over of Ist 3 Qtrs. Of 2005-06(59th meet) 2006-07 (60th meet) (Oct05-Jun06) Last Qtr.of 2006-07 (anticipated) (61st meet) (Jul06 to Sept06) 25.00 RE 2006-07 (Oct05-Sep06) (proposed)

R&D, Stowing, Protective work Development of Road &Rail Total

74.71

96.11

195.82

0.00 15.44 1.55 16.99 ------------------------------------------------------------------------74.71 111.55 26.55 212.81 ------------------------------------------------------------------------- 13 -

Ministry of Coal-Annual Report: 2006-07

(C) Collection of Excise Duty 2.23. During the period from April 2006 to December 2006, an amount of Rs. 314.71 crore was collected against BE 2006-07 of Rs. 416.25 crore. RE 2006-07 is proposed at Rs. 409.00 crore. (D) Collection, Compilation and Publication of Coal Statistics 2.24 The Coal Controller being the Statistics Authority of coal statistics, the publication of the Organisation is perhaps the lone authentic source of coal statistics in the country. The organisation collects, compiles and analyses coal statistics periodically to cater to the need of various Government Departments, national and international bodies, research organisations etc. who require such data. A compendium entitled "Coal Directory of India" is prepared after restructuring and remodelling of the earlier publication in order to present it as an integrated and exhaustive data bank and has received wide appreciation from the users. As the Coal Directory requires a longer time period for publication, "Provisional Coal Statistics" is also brought out by the organisation within a month of expiry of the financial year giving provisional statistics of some of the major parameters required by various organisations and departments. 2.25 The Provisional Coal Statistics 2005-06 was published in May 2006. Besides, monthly coal statistics for December'05-March'06 were also published during the period. In addition, monthly coal data is being supplied to the Ministry of Coal, the Central Statistical Organisation, IBM, IEA etc. (E) Disposal of cases under section 8 of the Coal Bearing Areas (Acquisition & Development) Act, 1957

2.26 Against the notification for intention to acquire land under section 7 of the Coal Bearing Areas (A&D) Act 1957, the Coal Controller is the competent authority to receive and hear any objection pertaining to the notification and send reports under section 8 of the said Act on such objection or nil report, as the case may be, to the Ministry of Coal. 2.27 During the period April 2006 to December 2006, reports in respect of 3 notifications were sent to the Ministry of Coal. (F) Vigilance Report for the period from April 2006 to November 2006 2.28 The receipt and disposal of vigilance cases for the period from April 2006 to November 2006 in respect of the Coal Controller's Organisation is 'NIL'. (G) Quality Surveillance Activities 2.29 Under the Colliery Control Order, 2000, Coal Controller has to monitor the quality of coal despatched from collieries and also settle quality complaints of consumers. After the introduction of third party/joint sampling, the requirement of such quality monitoring has come down considerably as the consumers are now - 14 Ministry of Coal-Annual Report: 2006-07

required to pay in terms of the grades as analysed on the basis of third party/joint sampling results. Under such circumstances, the strength of the quality control cell in the office of the Coal Controller has been drastically pruned down from 133 to 30 in March 2001. 2.30 There are six field offices in the Coal Controller's Organisation located at Dhanbad, Ranchi, Bilaspur, Nagpur, Kothagudem and Kolkata. The location of the field offices and their jurisdiction are as under: Dhanbad : Collieries under ECL, BCCL, TISCO (Jharia), IISCO, BECML, ICML,PANEM Ranchi : Collieries under CCL, NCL, TISCO (West Bokaro), JSMDCL and DVC Bilaspur : Collieries under SECL, MCL, JSPL, MIL, HIL, JPL, PIL and UCML(JN) Nagpur : Collieries under WCL, BLA,GMDCL,GIPCL Kothagudem: Collieries under SCCL Kolkata : Lignite mines under NLC, RSMML, coal mines under NEC etc. 2.31 Each of the field offices is headed by one GM/Deputy GM level Executive working in the capacity of OSD. Apart from carrying out normal inspection for ascertaining quality in selected mines, the field officers also carry out inspections to comply with specific order relating to coal quality and for resolving statutory complaints. During 2006-07, till December'06, out of four nos of statutory complaints received, three nos. have been disposed of and remaining one is under examination. Besides looking after the quality surveillance jobs, the above field officers are also entrusted with the field works associated with CCDA assistance, opening and re-opening permission of coal seams/section of coal seam under the Colliery Control Order, 2000 and other coordination jobs with the coal companies. Recently, such activities are also extended to lignite mines. In addition, one OSD is posted at the Coal Controller's Office at Kolkata for coordinating with the field offices and rendering assistance to the Coal Controller on technical matters. (H) Monitoring progress in respect of coal blocks allocated and their associated end use projects 2.32 The Coal Controller has been entrusted with the task of monitoring the progress made by successful allocatees of captive/other coal blocks with respect to coal blocks as well as associated end use p rojects with a view to monitor production of coal in synchronization with the development of their respective end use projects. Office of the Coal Controller has been collecting information on progress in respect of different milestones on quarterly basis, for monitoring development of captive coal blocks and associated end use projects.

- 15 Ministry of Coal-Annual Report: 2006-07

2.33 Deduction of Bank Guarantee: Coal Controller has also been entrusted with the task of making deduction from the bank guarantee furnished by respective block owners in case any lag on the part of any captive block owner in production of coal is detected. Office of the Coal Controller is pursuing with respective blocks owners as regards submission of bank guarantee within the stipulated period after allocation of blocks. COMMISSIONER OF PAYMENTS (COP) 2.34 The Office of Commissioner of Payments was set up in pursuance of the Coking Coal Mines (Nationalisation) Act, 1972 and the Coal Mines (Nationalisation) Act, 1973 for the purpose of disbursement of amounts payable to owners of coal mines or group of coal mines nationalized in 1972-73. Initially, there were two Offices of Commissioner of Payments, one for determining compensation etc. for nationalized coking coal mines and coke oven plants with headquarters at Dhanbad and the other for nationalised non-coking coal mines with headquarters at Kolkata. After the work of Dhanbad Office had been disposed of substantially, that Office was wound up and its residual work was transferred to the Office of Commissioner of Payments, Kolkata. At present, the Coal Controller is functioning as ex-officio Commissioner of Payments. 2.35 In addition to the above, in compliance with the recommendations of the Expenditure Reforms Commission, it has been decided by the Ministry of Coal to wind up the COP Office before 06.06.2007 and residual works will be transferred to the Office of the Coal Controller. 2.36 The details of number of colliery accounts in the office of the COP in respect of which claims are to be settled and the amount of compensation left for disbursement at the end of November, 2006 are as under: Particulars Coking Coal (Act of 1972) Non-Coking Coal (Act of 1973) 711 576 135 Rs.7.10 cr Rs.0.39 cr 34

1. Number of Collieries Nationalised 226 2. Number of Collieries accounts closed upto 30.12.2006 170 3. Number of Collieries accounts not closed upto 56 30.12.2006 4. Amount of compensation money left for Rs.3.81 cr disbursement as on 30.12.2006. 5. i) Estimated payments (Jan 07-Mar 07) Rs.0.40 cr ii) Estimated closure of colliery accounts 12 Coal Mines Provident Fund Organisation

2.37 The Coal Mines Provident Fund Organisation is an autonomous body under the Ministry of Coal, Govt. of India established in 1948 through an Act of parliament to administer different schemes of Provident Fund, Pension and Deposit Linked - 16 Ministry of Coal-Annual Report: 2006-07

Insurance for coal miners. These schemes are administered through the Board of Trustees, comprising 21 members representing Union of India, State govt. employers and employees representatives with the Chairmanship of Secretary (Coal), Govt. of India. The commissioner is the CEO and ex-officio member of the Board. 2.38 The organisation renders services to over 5 lakh members and more than 2 lakh pensioners. CMPFO is headquartered at Dhanbad and consists of 23 regional offices spread all over India. 2.39 The following measures have been taken to improve the working of the organisation: (i) (ii) (iii) (iv) (v) (vi) Creating better working environment and better work culture. Participation of CMPFO staff, Coal Company and Coal workers for commitment and enforcing time bound settlement of claims Eradication of middleman and moneylenders. Confidence building among the stake holders. To sustain the change and bring transparency in the organisation, it was felt expedient to adopt IT along with process re-engineering. Adopt world class practices and processes through IT solutions.

2.40 To provide improved services to the stakeholders, the following specific steps have been taken:Simplification of Procedure: 2.41 Rules under different Schemes administered by CMPFO were simplified. Easy Sahaj forms were introduced. Jabalpur, Hyderabad and Nagpur were chosen for pilot implementation. IT Initiative. 2.42 Project NIDHI (New Initiative for Digitization and Handling of Information) was launched to bring effectiveness and transparency in CMPFO. Now all its 23 offices spread over the country mainly in the coal belts have been networked through VPN (virtual Private Network) and MPLS (Multi Protocol Label Switching) of BSNL. The ERP solution of SAP i.e. FS-CD ( Financial Services Collection and Disbursement ), FI-GL(Financial General Ledger) , XI ( Exchange Infrastructure) and Pay Roll for HR(Human Resources) have been implemented. All the papers have been digitized. Now all the claims are being settled centrally at Dhanbad and its Disaster recovery centre at Hyderabad. 2.43 Benefits to the workers

1. Settlement of Claim at any time and any place irrespective of their place of posting. The ledger cards are not required to be transferred from one regional office to another. - 17 Ministry of Coal-Annual Report: 2006-07

2. Workers will have one 10 digit coal social security number so that while working with different companies or contractors the number remains same once allotted. 3. A toll free Telephone number of BSNL i.e. 1800-425-2673 has been provided so that the workers can access to information about their PF and Pension through Integrated Voice Response System (IVRS) in Hindi, English, Bengali, Telugu, Marathi and Oriya, which are the main languages of the coal belts. 4. If the worker provides a mobile number, they can get many structured information regarding the settlement of PF and Pension, Date, amount, bank credit details etc and also the periodical updates of information. 5. The information is also available in the web site http://cnidhi.com which could be viewed from any part of the world.

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

- 18 Ministry of Coal-Annual Report: 2006-07

CHAPTER - 3
COAL COMPANIES AND NEW MINING POLICY
3.1 The Coking Coal Mines (Emergency Provisions) Ordinance was promulgated by the Government of India on 16.10.1971 under which, except the captive mines of TISCO and IISCO , the management of all coking coal mines was taken over by the Government. A new company called the Bharat Coking Coal Limited was formed as a subsidiary company of Steel Authority of India Limited to manage the taken over mines. These mines were subsequently nationalised w.e.f 01.05.1972. Later on, the management of 711 coal mines was also taken over by the Government with effect from 31.01.1973 and they were nationalised w.e.f. 01.05.1973 and a new Government company, namely, the Coal Mines Authority Limited (CMAL), with headquarters in Kolkata, was set up by the Government in May, 1973 to manage the non-coking coal mines. CMAL was organized as a unitary structure on divisional pattern with four Divisions, namely, the Central Division, the Eastern Division, the Western Division and CMPDIL. The mines of erstwhile National Coal Development Corporation were brought under the Central Division of CMAL. In September, 1975, CIL was formed as a Holding Company with five subsidiaries, namely, Bharat Coking Coal Limited (BCCL), Central Coalfields Limited (CCL), Eastern Coalfields Limited (ECL), Western Coalfields Limited (WCL) and Central Mine Planning and Design Institute Limited (CMPDIL). 3.2 In view of the projected increase in production and investment contemplated for ECL and WCL group of coal mines and in view of their extensive geographical spread resulting in day to day administrative, technical and communication problems, two more coal companies, namely, Northern Coalfields Limited and South Eastern Coalfields Limited were formed w.e.f. 28.11.1985. 3.3 Considering the prospects of Orissa coalfields, being the growth centre for the VIII and IX Plan periods, a new coal company was formed bifurcating South Eastern Coalfields Limited (SECL). The new company Mahanadi Coalfields Limited, was incorporated on 3rd April, 1992 with its headquarters at Sambalpur (Orissa) as fully- owned subsidiary of Coal India Limited to manage the Talcher and IB- Valley coalfields in Orissa. 3.4 Coal India Ltd. (CIL) as holding company has now eight subsidiaries viz. Bharat Coking Coal Limited (BCCL), Central Coalfields Limited (CCL), Eastern Coalfields Limited (ECL), Western Coalfields Limited (WCL), South Eastern Coalfields Limited (SECL), Northern Coalfields Limited (NCL), Mahanadi Coalfields Limited (MCL) and Central Mines Planning and Design Institute Limited (CMPDIL). CMPDIL is an engineering design and exploration company set up for preparing perspective plans, rendering consultancy services and undertaking - 19 Ministry of Coal-Annual Report: 2006-07

exploration and drilling work to establish coal reserves in the country and collection of detailed data for preparation of projects for actual mining. The other seven subsidiaries of CIL are coal producing companies. 3.5 CIL and its subsidiaries are incorporated under the Companies Act, 1956 and are wholly owned by the Central Government. The coal mines in Assam and its neighbouring areas are controlled directly by CIL under the unit North Eastern Coalfields. 3.6 In addition to CIL and its subsidiaries, there is another coal company in public sector, namely, the Singareni Collieries Company Limited (SCCL), which is a joint venture between the Government of Andhra Pradesh and Government of India, with equity capital shared in the ratio of 51:49 respectively. COAL INDIA LIMITED AND ITS SUBSIDIARIES 3.7 CIL, the holding Company with headquarters in Kolkata, is headed by a Chairman-cum-Managing Director in schedule 'A' scale of pay. He is assisted by four Functional Directors, namely, Director (Technical), Director (Personnel & Industrial Relations), Director (Finance) and Director (Marketing), who are all in Schedule 'B' scale of pay. Each subsidiary company has its own Board of Directors headed by a Chairman-cum-Managing Director in schedule 'B' scale of pay. In addition, there are four functional Directors ( in schedule 'c' scale of pay) in each of the six production companies of BCCL, ECL, CCL, NCL, SECL and WCL viz. Director (personnel), Director (Finance), Director (Planning and Projects) and Director (Operations). In MCL there are at present three posts of functional Directors, namely, Director (Technical), Director (personnel) and Director (Finance). CMPDIL also has four functional Directors on its Board of Directors who are designated as Director (Technical), Director (Coal Preparation & Utilization), Director (Planning & Design) and Director (Research, Development & Technology). In addition, there are several part-time or nominee Directors on the Board of CIL and its subsidiaries, who are appointed in accordance with the Articles of Association of the Company and Government guidelines prescribed in this behalf from time to time. The authorized share capital of CIL as on 31.03.2006 was Rs. 8,904.18 crore divided into :
90,41,800 Non-cumulative 10% redeemable preference shares of Rs. 1000/- each

Rs. 904.18 crore Rs. 8000.00 crore


Rs. 8904.18 crore

8,00,00,000 Equity Shares of Rs. 1000/- each


TOTAL

- 20 Ministry of Coal-Annual Report: 2006-07

3.8

The authorized share capital of the subsidiary companies of CIL as on 31.03.2006 is given below:

Subsidiary Company Bharat Coking Coal Limited Western Coalfields Limited Central Coalfields Limited Eastern Coalfields Limited Northern Coalfields Limited South Eastern Coalfields Limited Mahanadi Coalfields Limited Central Mine Planning & Design Institute Ltd.

Authorised Share Capital (Rs. in Cr.) 2500.00 800.00 1100.00 2500.00 1400.00 1300.00 500.00 50.00

3.9 CIL is mainly responsible for laying down corporate objectives, approving and monitoring performance of subsidiary companies in the fields of long-term planning, conservation, research and development, production, sales, finances, recruitment, training, safety, industrial relations, wages, material for all operational matters, commissioning and execution of new as well as on-going projects, man management, production consumer satisfaction etc. In addition, subsidiary companies perform related functions such as maintaining liaison with the concerned State Governments, acquisition of land, execution of welfare programmes, maintenance of safety standards, improvement of industrial relations etc. 3.10 In addition to the above functions, CIL has directly under its control the development and exploitation of coal mines in the North-Eastern States, and the coal marketing network spread throughout the country. 3.11 CIL and its subsidiaries earned collectively a pre-tax profit of Rs. 8676.72 crore in the year 2005-2006 against a pre-tax profit of Rs.4801.52 crore in the year 2004-2005 and estimated profit/loss for the year 2006-07 (RE) is Rs.7792.00 crore. Company-wise position with regard to profit (+) earned or loss (-) incurred for the year 2004-2005 vis--vis 2005-06, position upto December, 2006 (Prov) and projection from January, 2007 to March 2007 are given in the table below : (Rs. in crore)
S. N 1. 2. 3. 4. 5. Name of the 2004-2005 Coal Profit(+)/Loss(-) Companies ECL BCCL CCL NCL WCL - 629.20 - 959.43 + 437.81 + 1976.03 + 935.30 2005-2006 profit(+)/Loss(-) + 371.96 + 205.08 + 1164.98 + 2116.26 + 1446.96 2006-2007 (Provisional) Dec., 2006 111.96 259.17 +390.05 + 1547.79 +519.45 Jan., 2007 Mar, 2007 + 312.51 + 261.31 + 531.98 + 309.98 + 192.66 Apl, 2006 Mar, 2007 + + + 200.80 2.14 922.03

+ 1857.77 + 712.11

- 21 Ministry of Coal-Annual Report: 2006-07

6. 7. 8. 9.

SECL MCL CMPDIL CIL/NEC Sub Total

+ 1580.93 + 1469.36 + 1.73 + 1328.30 6090.83 - 1289.31 + 4801.52

+ 1286.12 + 1837.21 + 3.94 + 1979.27 10411.78 - 17.35.06 + 8676.72

+ 1238.16 + 1397.65 + 1.23 + 135.31 + 4858.76

+ 656.36 + 402.90 + 2.61

+ 1894.52 + 1800.55 + + 3.84 2738.61

+ 2603.30 + 5273.61

+ 10132.37 (-) 2340.37

Less Dividend from subsidiaries Total CIL

+ 4858.76

+ 5273.61

+ 7792.00

Note : Profit of SECL for 2005-06 is after making provision of Rs.388.32 crore on account of arrear wages arising out of NCWA-VII. Profit of companies in 2004-05 is after consideration of impact of NCWA-VII, amounting to Rs.2449.64 crore (excluding SECL). 3.12 Details of dividend received from subsidiary companies during 2004-05 and 2005-06 are as under: Name of the Subsidiary Northern Coalfields Ltd. Western Coalfields Ltd. South Eastern Coalfields Ltd. Mahanadi Coalfields Ltd. Total Rs. in Crore 450.51 315.02 559.33 410.20 1735.06

(426.76) (186.57) (246.75) (429.23) (1289.31)

Figures in parenthesis indicate earlier years dividend. CENTRAL MINE PLANNING AND DESIGN INSTITUTE LTD. (CMPDIL) 3.13 The Central Mine Planning and Design Institute Limited (CMPDIL) a subsidiary of Coal India Limited, is engaged in the work of exploration, project planning, detailed designing of systems and sub-systems, co-ordination and integration of applied research and development, absorption of new technique of coal mining, beneficiation and utilization of coal, perspective planning, environment related services. It caters to the total planning and designing needs of new coal projects and re-organization of existing mines for optimal production of coal. The company has its headquarters located at Ranchi and has seven Regional set ups located at Asansol, Dhanbad, Ranchi, Nagpur, Bilaspur, Singrauli and Bhubaneswar to render doorstep service to the coal producing companies located in these areas. In addition, to satisfy the planning and design requirements of CIL and its subsidiary companies, CMPDIL also offers consultancy services to outside organizations. 3.14 During the year 2006-07 (April, 2006 to December, 2006) CMPDIL was engaged in the preparation of geological reports, project reports for - 22 Ministry of Coal-Annual Report: 2006-07

new/expansion/re-organization of mines for building of additional production capacity, operation plans, special reports, environment management plans and other reports. During this period, a total of 168 reports were prepared. 3.15 During the year 2006-07 (April, 2006 to December, 2006), consultancy services were provided to 9 organizations for 13 jobs. Some of the important clients/organizations to whom services were provided were National Thermal Power Corporation Limited, Tata Steel, Singareni Collieries Company Ltd., Central Pollution Control Board, Manganese Ore (India) Ltd., Orissa Mining Corporation, Electro-steel Casting Ltd., etc. Presently, 16 outside consultancy jobs are in hand for 14 organizations such as Central Pollution Control Board, Tata Steel, Indian School of Mines, Neyveli Lignite Corporation Ltd., Rashtriya Ispat Nigam Ltd., Chattisgarh Mineral Development Corporation Ltd., Chattisgarh State Electricity Board, National Aluminum Company Ltd., Haryana Power Generation Corporation Ltd., Orissa Mining Corporation Ltd., HINDALCO, etc. BHARAT COKING COAL LIMITED (BCCL) 3.16 The Bharat Coking Coal Limited is one of the loss-making subsidiary companis of Coal India Limited. The company incurred a loss of Rs.569.85 crore and Rs.959.43 crore for the years 2003-04 and 2004-05 respectively and earned a profit Rs. 202.67 crore for the year 2005-06. The paid up capital of the company as on 31.03.2006 is Rs.2118.00 crore. The company has accumulated losses of Rs.6841.36 crore as on 31.03.2006. The Company has incurred loss of Rs.254.17 crore (Provisional) upto December, 2006 during the current financial year. 3.17 The Company has its headquarters at Dhanbad in Jharkhand. It had under its charge nationalized coking coal mines and two mines, namely, Moonidih and Sudamdih transferred to it from the erstwhile National Coal Development Corporation Ltd. All these mines were re-organized into units/areas for administrative and operational convenience. BCCL is the major producer of prime coking coal (raw and washed). Medium coking coal is also produced in its mines in Mohuda and Barakar areas. In addition to production of hard coke, BCCL operates a number of sand gathering plants, a network of aerial ropeways for transport of sand and nine coal washeries, namely, Dugda, Mohuda, Bhojudih, Patherdih, Lodna, Sudamdih, Barora, Moonidih and Madhuban. 3.18 BRPSE considered the revival proposal of BCCL in its 19th meeting on 29.08.2005. The Board noted that revival plan envisages fresh infusion of funds to the tune of Rs.2,014 crore and waived/conversion/guarantee to the tune of about Rs.3,926 crore from CIL. The Board advised the Ministry of Coal/BCCL to resubmit the revival proposal duly appraised by an independent consultant for its consideration and also to explore the feasibility of placing BCCL on management contract to other public/private sector enterprises having synergy with BCCL. BCCL/CIL were advised on 18.10.2005 to get the revival proposal appraised by an independent consultant, and give the views of BCCL Management and the recognized Trade Unions on the proposal of placing BCCL on management contract - 23 Ministry of Coal-Annual Report: 2006-07

with other public/private sector enterprises. Accordingly, BCCL Board at its 244th Meeting held on 21.01.2006 appointed M/s. CARE as independent consultant for appraisal of the Revival Plan. Final Report of M/s. CARE on revival plan was accepted by BCCL Board at its 245th Meeting held on 21.04.2006. The report on revival plan is now under examination in Coal India Limited. 3.19 Coal production as well as OB removal during the period April-December, 2006 is the highest compared to the same period in last five years. The company has been able to register certain quantifiable positives in the current financial year upto December, 2006, viz. (a) The cumulative production till December, 2006 (165.66 lakh tonne) is 8.33 lakh tonne higher than the production of corresponding period last year (157.33 lakh tonne), representing a growth of 5.29%. The cumulative total OB removal upto December, 2006 is 349.78 lakh cu. m, which is 9.12% higher than that achieved during the same period last year (320.55 lakh cu.m). The offtake upto December, 2006 (176.50 lakh tonne) is 9.22% more than the corresponding period last year (161.60 lakh tonne). The wagon loading on progressive scale is 2327 FWW per day compared to 2251 FWW per day achieved during the same period last year, a growth of 3.38%. The overall departmental capacity utilization till December, 2006 is 66.66% compared to 64.17% achieved during the corresponding period last year, registering a growth of 3.88%. These has been a significant improvement in the departmental opencast production and OB removal. The growth compared to last year is 14.72% and 17.22% respectively during the period upto December, 2006 compared to the corresponding period last year. Production from hired HEMM patches has also experienced a growth of 43.9%.

(b)

(c) (d)

(e)

(f)

(g)

SOUTH EASTERN COALFIELDS LIMITED (SECL) 3.20 The South Eastern Coalfields Limited, with headquarters at Bilaspur (Chhattisgarh), was incorporated under the Companies Act, 1956 on 28.11.1985 but for accounting purposes, it started functioning independently from 01.04.1986. The Company, presently, covers Korba, Kusmunda, Gevra, Dipka Raigarh, Bhatgaon, Bisrampur, Baikunthpur, Chirimiri and Hasdeo (partially) Areas in Chhattisgarh and Sohagpur, Jamuna-Kotma and Johilla Areas in Madhya Pradesh, after de-merging of the coalfields of Orissa with Mahanadi Coalfields Limited in the year 1992. SECL continues to be one of the leading coal producers among the subsidiaries of CIL. The Company posted a profit of Rs. 1286.12 crore before tax during 2005-06 as compared to Rs. 1580.93 crore in the previous year. The reduction in the profit was - 24 Ministry of Coal-Annual Report: 2006-07

primarily on account of additional liability of Rs. 553.06 crore provided during the financial year 2005-06 towards revision of wages of its employees under NCWAVII. The Company has earned a profit of Rs. 1027.40 crore (provisional) up to November, 2006 during current financial year. The Company is also running a Coal Carbonisation Plant, named as Dankuni Coal Complex situated at Dankuni (West Bengal), on lease from Coal India Limited. WESTERN COALFIELDS LIMITED (WCL) 3.21 The company has its headquarters at Nagpur (Maharashtra). The mining operations are organized into 10 areas, 7 located in the State of Maharashtra and 3 in Madhya Pradesh. WCL meets mainly the requirement of power houses, cement plants and other industries located in the Western region of the country. 3.22 The company made a net profit of Rs.1446.96 crore before Tax during the year 2005-06 as against Rs.935.30 crore in the previous year. The Company has earmed net profit of Rs.519.45 (Prov.) crore upto December, 2006. EASTERN COALFIELDS LIMITED (ECL) 3.23 The Eastern Coalfields Limited (ECL) inherited some of the oldest coal mines of the country after nationalisation. The coal reserves of ECL falling in West Bengal are in deep seams with the result that the geo-mining conditions in such seams are extremely difficult. It has a large share of old underground mines. Because of difficult geo-mining conditions and surplus manpower, not only the cost of production is very high but also ECL's productivity measured in terms of OMS (Output per Man shift) has been traditionally the lowest amongst all the subsidiaries of CIL. For the year 2005-06, the Company produced 31.11 million tonnes of coal with a positive growth of 14.18%, removed 44.30 million cu.m. with a growth of 11.33%, despatched 28.20 million tonnes with a growth of 5.74%, productivity of 1.29 tonnes with a growth of 20.09%, capacity utilization of 86.59% with a growth of 4.50% over previous year and achieved a profit of Rs. 363.86 crore against the loss of Rs. 679.20 crore during 2004-05. This achievement was much better than what had been projected to BIFR - a profit of Rs. 55.11 crore, and BRPSE - a profit of Rs. 81.48 crore for the year during 2005-06. During 2006-07, the Company expects to produce 31.50 million tonnes of coal and achieve a profit of around Rs. 120 crore. 3.24 BIFR sanctioned the Company's Revival Programme during November'2004. BRPSE approved the Revised Revival Plan of the Company in its 19th Meeting held on 29th August, 2005 and recommended the Revival Package to the Government. The Committee of Secretaries under the Chairmanship of Cabinet Secretary heard the ECL's Revival Plan on 13th January'2006 and approved the BRPSE recommended Revival Plan. The Cabinet Committee on Economic Affairs also approved the BRPSE recommended Revival Plan on 5th October, 2006. The Company is implementing the Revival Plan for its revival. - 25 Ministry of Coal-Annual Report: 2006-07

During 2006-07, till December'2006, the Company has produced 21.11 million tonnes of coal with a growth of 2.52%, removed overburden to the extent of 35.27 million Cu.M. with a growth of 14.51%, despatched 20.90 million tonnes of coal with a growth of 3% over the previous year. One of the biggest open cast projects of the Company, viz. the Rajmahal Project, is holding coal stock of 39.12 lakh tonnes as on 05.01.2006, which prevents the Company from increasing the production to the desired level. 3.25. Steps taken by ECL have resulted in 2.52% growth in coal production and 14.51% increase in overburden removal during April to December, 2006 over the same period last year. NORTHERN COALFIELDS LIMITED (NCL) 3.26 The Northern Coalfields Ltd. (NCL), a subsidiary company of Coal India Limited (CIL), was incorporated on the 28th November, 1985. Located on the MPUP boarder, this coalfield is spread over an area of about 2,202 Sq. Kms comprising two basins viz. Moher Sub basin and Main Basin (1890 Sq.Km). During the year 2005-06, the company earned a profit of Rs.2,116.26 crore as compared to Rs.1,976.04 crore during the previous year. The company has earned a profit of Rs.1547.79 crore (provisional) upto the month of December during the current financial year. MAHANADI COALFIELDS LIMITED 3.27 The Mahanadi Coalfields Limited, with its headquarters at Sambalpur, was incorporated under the Companies Act, 1956 as another subsidiary company of CIL on the 3rd April, 1992. The Company had 20 producing mines situated in the Ib Valley and Talcher Coalfields in the State of Orissa. For effective administrative control and efficient functioning of operational activities, the mines are grouped into 10 Areas. During the year 2005-2006, the company earned a profit of Rs. 1,837.21 crore as compared to Rs. 1,469.36 crore during the previous year. The company has earned a profit of Rs. 1,397.65 crore (provisional) upto the month of December during the current financial year.

CENTRAL COALFIELDS LIMITED (CCL) :


3.28 This company has its headquarters at Ranchi in Jharkhand and covers East and West Bokaro; Ramgarh, Giridih, North and South Karanpura, Hutar and Daltanganj Coalfields of Jharkhand. Apart from several nationalized mines, it owns most of the mines of former National Coal Development Corporation Ltd. The Company produces medium coking coal (raw and washed), non-coking coal, soft coke and hard coke. The Company has earned a profit of Rs. 1,164.98 crore during 2005-06 as compared to Rs. 437.81 crore during the previous financial year. The Company has earned a profit of Rs. 390.05 crore (provisional) upto the month of December during the current financial year. - 26 Ministry of Coal-Annual Report: 2006-07

3.29

NORTH EASTERN COALFIELDS (NEC)

The North Eastern Coalfields, with its headquarters at Margherita, is a unit directly controlled by CIL and is responsible for development and production of coal in the North Eastern Region. Even though active coal mining is confined presently within the State of Assam, the coal reserves of Arunanchal Pradesh, Meghalaya and Nagaland are planned to be exploited in future for the proposed supply to the coal liquefaction project being joint explored by the Task Force comprising of Oil India Limited and Coal India Limited. SINGARENI COLLIERIES COMPANY LIMITED (SCCL) 3.30 SCCL is a joint undertaking of the Government of Andhra Pradesh and the Government of India. The equity capital is shared in the ratio of 51:49 between the Government of Andhra Pradesh and the Central Government respectively. The headquarters of the Company is at Kothagudem in Andhra Pradesh. 3.31 In 1994, SCCL was under reference to BIFR as a sick industrial company within the meaning of Section 3(1) (0) of the Sick Industrial Companies (Special Provisions) Act. 1985. A turn around package for rehabilitation of SCCL approved by the Government of India in consultation with Government of Andhra Pradesh and the Company was submitted to BIFR. Following this, BIFR vide its order dated 10.01.1995 decided that it was no longer necessary to pursue the case of the company under the provisions of the said Act. Under Section 23 of the said Act, SCCL became a potentially sick company on finalization of its 1995-96 accounts. In December, 1996, the company was again referred to BIFR as a potentially sick company. Since then, the company has registered a remarkable turn around. It is now a profit making company. The accumulated profit of SCCL as on 31.03.2006 stands at Rs.176.42 crore. The company earned a profit before tax of Rs.332.49 lakh during the year 2005-06. ----- x ----- x ----- x -----

- 27 Ministry of Coal-Annual Report: 2006-07

CHAPTER 4
COAL EXPLORATION
4.1 Regional and Promotional Exploration: Exploration for coal is carried out in two stages. In the first stage, Geological Survey of India (GSI) undertakes Regional Exploration of large areas to find out the broad availability of coal seams, geological structure, resource etc. on a continuous basis, confirming the prognosticated occurrence of coal. Ministry of Mines provides fund for it. In order to supplement and augment the efforts of the GSI for Regional Exploration, Government introduced a scheme of Promotional (regional) Exploration in Coal and Lignite in 1989 which is under implementation on plan-to-plan basis. Services of Mineral Exploration Corporation (MECL), GSI and CMPDI are taken for carrying out Promotional (Regional) Exploration in various parts of the country. Ministry of Coal provides fund for this scheme. The Sub-committee on Energy Minerals (Group III of Central Geological Programming Board) with representatives of GSI, CMPDI, MECL, Singareni Collieries Company Limited (SCCL), Neyveli Lignite Corporation (NLC), CFRI, Ministry of Coal, Planning Commission etc., approves the programmes, coordinates and reviews the Regional Exploration work. CMPDI acts as a nodal agency for disbursement of funds for Promotional Exploration besides carrying out technical supervision of MECLs work in coal Sector. 4.2 Detailed Exploration: In the second stage, Detailed Exploration is carried out in potential areas of small size identified through Regional/Promotional Exploration, as per the requirements of Coal Companies in CIL blocks and others in Non-CIL/Captive blocks. Such blocks are taken up for detailed drilling to bring the reserves into Proved category and thus to reduce the uncertainties. The results of Detailed Exploration are incorporated in Geological reports that lead to Mine Feasibility Studies/Mining Plans and formulation of Project Reports of Mining. The reports are used for exploitation of coal reserves considering factors like emerging demand, its location, and availability of infrastructure for coal evacuation and techno-economics of the mine development including coal quality. 4.3 The Detailed Exploration is funded by Coal Companies from their capital budget. CMPDI directly, and in a limited manner through State Govts., carries out detailed exploration in CIL command areas whereas SCCL takes up such work in its own area. CMPDI is also conducting Detailed Exploration in Non-CIL/Captive Mining blocks within the CIL Command Area. 4.4 Detailed Exploration in Non-CIL Blocks: In December 1996, 275 blocks were earmarked for supporting CILs production needs till 2036-37. After that, subsidiaries of CIL were not willing to fund for exploration in other than CIL - 28 Ministry of Coal-Annual Report: 2006-07

areas ( Non-CIL Blocks). CMPDI proposed to conduct exploration in Non-CIL i.e. blocks to enable private entrepreneurs to locate prospective blocks and save 3-5 years in production schedule by paying the cost of exploration. Ministry of Coal approved the proposal of CMPDI for taking up such exploration in IX Plan and subsequently for X plan also. 4.5 In November 2003, it was decided in the Ministry that henceforth all exploration in the captive blocks would be done by CMPDI or under its direct supervision. No allocation of a captive block will be done unless the block has been explored enough to base a mining plan on the so available data (including assessment of extractable reserves). To recover the cost of such detailed exploration of identified captive mining blocks from the scheme of Detailed Exploratory Drilling in NonCIL blocks, the Govt. has approved a Revised Cost Estimate of Rs.93.84 crores. 4.6 Promotional Exploration: Sub-Group II on Coal & Lignite Exploration for formulation of X Plan had recommended the continuation of scheme for Promotional (Regional) Exploration in X Plan also. EFC, in its meeting held on 3.6.03, approved the proposed expenditure of Rs.275.80 crore in X Plan for carrying out 6.0 lakh metre of drilling by GSI, MECL and CMPDI in coal and lignite, CBM studies in association with promotional exploration and creation of coal and lignite resource information system. However, in Mid Term Review of X plan, the envisaged drilling was revised to 6.9 lakh metre and total cost estimates revised to Rs.261.55 crores. It has been envisaged to carry out 1,54,325 meter of promotional drilling in 2006-07 (BE) in coal & lignite. 4.7 Captive Coal Mining Blocks: Under the Coal Mines (Nationalisation) Act, 1973, coal mining was mostly reserved for the public sector. By an amendment to the Act in 1976, two exceptions to the policy were introduced viz., (i) captive mining by private companies engaged in production of iron and steel and (ii) sub-lease for coal mining to private parties in isolated small pockets not amenable to economic development and not requiring rail transport. Considering the need to augment thermal power generation and to create additional thermal power capacity during the VIII Plan period, the Government decided to allow private participation in the power sector. i) The Coal Mines (Nationalisation) Act, 1973 was amended with effect from 9th June, 1993 to allow coal mining for captive consumption for generation of power, washing of coal obtained from a mine and other end uses to be notified by Government from time to time, in addition to the existing provision for captive coal mining for production of iron and steel. Under the powers conferred on the Central Government by Section 3 (3) (a) (iii)(4) of the Act, another Gazette Notification was issued on 15.03.1996 to allow captive mining of coal for production of cement. The eligibility to do coal mining in the country has been laid down in the provisions in Section 3 (3) of the Coal Mines (Nationalisation) Act, 1973. - 29 Ministry of Coal-Annual Report: 2006-07

ii)

The parties eligible to do coal mining in India without the restriction of captive consumption are: a) The Central Government, a Government company (including a State Government company), a Corporation owned, managed and controlled by the Central Government. A person to whom a sub-lease has been granted by the above mentioned Government company or corporation having a coal mining lease, subject to the conditions that the coal reserves covered by the sub-lease are in isolated small pockets or are not sufficient for scientific and economic development in a coordinated manner and that the coal produced by the sub-lessee will not be required to be transported by rail.

b)

iii)

As per the provisions in Section 3 (3) (a) (iii) of the Coal Mines (Nationalisation) Act, 1973, a company engaged in the following activities can do coal mining in India for captive consumption only: a) b) c) d) production of iron and steel; generation of power; washing of coal obtained from a mine, or such other end use as the Central Government may, by notification, specify.

iv)

Under the powers vested with the Central Government by virtue of Section 3 (3)(a) (iii)(4) of the Coal Mines (Nationalisation) Act, 1973, a Gazette Notification was issued on 15.03.1996 to include cement production as an approved end-use for the purpose of captive mining of coal. Therefore, the cement producing companies are now eligible to undertake coal mining for captive consumption. Any of the companies engaged in any of the approved end-uses indicated in paras 2 and 2.1 above can itself mine coal from a captive coal block. Some of the private companies, who were offered captive coal blocks, expressed difficulties in carrying out coal mining in the country on the ground of lack of experience in coal mining. Keeping in view the difficulties experienced by such companies, the Government have allowed the following dispensations: a) The company engaged in approved end-uses can itself mine coal from a captive coal block. A company engaged in any of the approved enduses can mine coal from a captive block though a mining company supplying the coal on an exclusive basis from the captive coal block to the end-user company or to its subsidiary company, provided the end-user company has firm tie up with mining company for supply of coal, supported by legally binding and enforceable contract/agreement. - 30 -

v)

Ministry of Coal-Annual Report: 2006-07

b)

An independent coal/lignite mining company can also be allocated a captive block on the condition that the entire coal/lignite so mined would be transferred to an end user company(ies) for their captive consumption in the specified end uses, provided that the said mining company has firm back-to-back tie up with the specified end user company(ies), supported by legally binding and enforceable supply contract/ agreement. Preference will be accorded to power and steel sectors. Within the power sector also, priority shall be accorded to project with more than 500 MW capacity. Similarly, in steel sector, priority shall be given to steel plants with more than 1 million tonne per annum capacity

c)

vi)

The allocation of coal blocks to private parties is done through the mechanism of an inter-Ministerial inter-Governmental body called the Screening Committee. The Screening Committee is chaired by the Secretary (Coal) and has representation from Ministry of Steel, Ministry of Power, Ministry of Industry and Commerce, Ministry of Railways, Coal India Limited, CMPDIL and the concerned State Governments. The application is received from the applicant in the Ministry of Coal along with its enclosures and is then sent to the concerned administrative Ministry for their scrutiny and recommendations. The applicant is given an opportunity to present his case before the full Screening Committee. The status of the linked end-use project, track record of the applicant, compatibility of the grade of coal with requirement etc. are taken into consideration while determining the inter-se priority. Allocation of coal block is decided on merits through consultation/discussions in the Screening Committee. Guidelines for allocation of coal blocks both for the use of the Screening Committee and guidance to the applicants have been framed and necessary changes are made in the same from time to time based on experience gained and views of the Screening Committee. The same are displayed on the website of the Ministry of Coal. There are 229 (148 existing coal blocks and 81 new identified for blocks) coal blocks identified for allocation to Govt. companies and specified end users on display in the website of Ministry of Coal. 1 coal blocks have so 30 far been allocated to eligible companies. So far, production has commenced in 8 blocks. Production of coal from these 8 coal blocks in 2005-06 was 13.36 million tonnes.

vii)

- 31 Ministry of Coal-Annual Report: 2006-07

Allocated blocks viii) So far 130 coal blocks have been allocated to the Govt. companies/ companies. Sector-wise allocation of coal blocks is as below:Sector / End Use A. Public Sector Undertakings I Power (a) Captive Dispensation (b) Govt. dispensation (c) Ultra Mega Power Project Sub-total II Commercial Mining III Iron and Steel Total (I+II+III) B. Private Companies (a) Power (b) Iron and Steel (c) Small, Isolated Patches (d) Cement Sub-total Grant Total ix) No of blocks Geological Reserves (MT) private

30 10 6 46 22 2 70

3530.48 8294.00 1635.00 13459.48 4818.08 1383.50 19661.06

11 46 2 1 60 130

1094.61 6604.15 9.34 7.00 7715.10 27376.16

81 additional coal blocks with reserves of about 20.02 billion tonnes were identified by the Ministry during 2006-07 for allocation to Government companies/private companies for permissible end uses. Out of these, 41 blocks, with reserves of about 15.7 billion tonnes, have been further identified for the power sector. The blocks for the power sector, in consultation with Power Ministry, have been further categorised in 3 separate lists on the basis of method of allocation as follows: Sl.No i) ii) iii) Method of Allocation Government company dispensation route Screening Committee route Tariff based bidding as per Ministry of Power guidelines Sub-total - 32 No. of blocks 10 15 16 41 Total Reserves (MT) 6072.15 3622.44 6015.30 15709.89

Ministry of Coal-Annual Report: 2006-07

The remaining 40 blocks would be considered for allocation for the non-power sector as follows: Sl.No Method of Allocation i) ii) Government dispensation route Screening Committee route Sub-total TOTAL No. blocks company 17 23 40 81 of Total Reserves (MT) 1847.75 2464.23 4311.98 20021.87

x)

The guidelines for allocation have been amended in line with the decisions taken by the Energy Coordination Committee, recommendations of the Expert Committee and the opinion given by the Learned Attorney General of India. It has been decided that unexplored blocks will also be offered for allotment to private parties, where exploration shall be carried out by them, under the supervision of CMPDIL. The Ministry issued an advertisement for calling applications for the aforesaid blocks (Screening Committee route) and the applications were to be filed by 12th January 2007. In response to the advertisement, more than 1400 applications have been received from different public/private sector companies. These applications are forwarded to the concerned Administrative Ministries and State Governments where block is located for their comments on the proposals. As regards the blocks to be allocated by the Government company dispensation route, this Ministry has invited applications from all the State Governments and Central Ministries as per their requirements. The Ministry of Power has also been requested to take further action for the blocks which have been reserved for allocation through the tariff based bidding route. Ministry of Power proposes to set up four Ultra Mega Power Projects with capacity of 4000 MW each through tariff based competitive bidding route. Two of these are proposed to be based at coal pithead, namely, Singrauli Coalfields at Sasan in Madhya Pradesh and in Orissa. The Ministry of Coal has allocated coal blocks for the proposed Ultra Mega Power Project to be set up at Sasan in Madhya Pradesh and in Orissa. Details of allocated coal blocks for UMPP is as follows: S.No. 1. UMPP Sasan I. II. III. Total Block Moher Moher-Amlori Extension Chhatrasal - 33 GR(MT) 402 198 150 750

xi)

xii)

Ministry of Coal-Annual Report: 2006-07

2.

Orissa I. II. III. Total

Meenakshi Meenakshi-B Dip side of Meenakshi

285.24 250.00 350.00 885.24

INVENTORY OF GEOLOGICAL RESOURCES OF COAL IN INDIA 4.8 As a result of exploration carried out up to the maximum depth of 1200m by the GSI, CMPDI and MECL etc, a cumulative total of 255.17 Billion tonnes of Geological Resources of Coal have so far been estimated in the country as on 1.1.2007. The state-wise distribution of coal resources and its categorisation are as follows: Geological Resources of Coal in Million Tonnes Proved Indicated Inferred Total Andhra Pradesh 8475 6328 2658 17461 Arunachal Pradesh 31 40 19 90 Assam 314 27 34 375 Bihar 0 0 160 160 Chhattisgarh 9973 27035 4442 41450 Jharkhand 36881 31094 6339 74314 Madhya Pradesh 7584 9259 2934 19777 Maharashtra 4856 2822 1992 9670 Meghalaya 118 41 300 459 Nagaland 4 1 15 20 Orissa 17464 30239 14296 61999 Uttar Pradesh 766 296 0 1062 West Bengal 11454 11810 5071 28335 Total 97920 118992 38260 255172 (Source: Geological Survey of India) 4.9 Categorisation of Resources: The coal resources of India are available in sedimentary rocks of older Gondwana Formations of peninsular India and younger Tertiary formations of north-eastern/ northern hilly region. Based on the results of Regional/ Promotional Exploration, where the boreholes are normally placed 1-2 Km apart, the resources are classified into Indicated or Inferred category. Subsequent Detailed Exploration in selected blocks, where boreholes are less than 400 metres apart, upgrades the resources into State

- 34 Ministry of Coal-Annual Report: 2006-07

more reliable Proved category. The Formation-wise and Category-wise coal resources of India as on 1.1.2007 are given below:
(in Million Tonnes)

Formation Gondwana Coals Tertiary Coals Total

Proved 97453 467 97920

Indicated 118886 106 118992

Inferred 37891 369 38260

Total 254230 942 255172

Type-wise & Category-wise coal resources of India as on 1.1.2007 are given below:
(in Million Tonnes)

Type of Coal (A) Coking :-Prime Coking -Medium Coking -Semi-Coking Sub-Total Coking (B) Non-Coking:Total (Coking & Non-Coking)

Proved 4614 11774 482 16870 81050 97920

Indicated 699 11601 1003 13303 105689 118992

Inferred 1880 222 2102 36158 38260

Total 5313 25255 1707 32275 222897 255172

4.10 Status of Coal Resources in India during Last Five Years: As a result of Regional, Promotional and Detailed Exploration by GSI, CMPDI and SCCL etc, the estimation of coal resources of India has reached 255.17 BT. The increase/upgradation of coal resources in the country during last 5 years can be judged from table below: As on 1.1.2002 1.1.2003 1.1.2004 1.1.2005 1.1.2006 1.1.2007 Geological Resources of Coal in Million Tonnes Proved Indicated Inferred Total 87320 109377 37417 234114 90085 112613 38050 240748 91631 116174 37888 245693 92960 117090 37797 247847 95866 119769 37666 253301 97920 118992 38260 255172

EXPLORATION ACTIVITIES OF CMPDI 4.11 CMPDI is continuing its programme of Detailed Exploration in 2006-07 also. The emphasis has been on proving power grade and superior grade Non-Coking coal resources in CIL and Non-CIL Blocks. A nominal amount of Promotional Drilling - 35 Ministry of Coal-Annual Report: 2006-07

has also been carried out in North Karanpura and Tawa Valley coalfields. CMPDI has also carried out CBM exploration drilling in a CIL-ONGC Joint Venture block in Raniganj coalfield. DRILLING: 4.12 For the purpose of Detailed Exploration, CMPDI has largely deployed its own drilling resources. The drilling resources of MECL and State Govt. of M.P., Chhattisgarh & Orissa are deployed in a limited manner on contractual basis. On an average, 48 to 53 drills were operated by all agencies during the period April to December 2006, out of which 43 to 45 were CMPDI drills. 4.13 During the period April to Dec.'06, exploratory drilling has been carried out in 75 blocks/mine areas spread over 19 coalfields in the states of West Bengal, Jharkhand, M.P., Chhattisgarh, Maharashtra and Orissa. This includes detailed exploration of 9 Non-CIL blocks, and promotional exploration of 3 blocks by CMPDI. 4.14 A total of 1,39,555 meter of exploratory drilling have been carried out by CMPDI and its contractual agencies during the period April to December 2006. In the remaining period of January to March 2007, it is expected that another 65,450m of drilling will be carried out. The agency-wise performance and projections of drilling are given below: Agency-wise Performance of Exploratory Drilling by CMPDI & Its Contractual Agencies during 2006-07 (In CIL, Non-CIL and Promotional Blocks) Annual Achieved Projected Projected % Achiev. Target April to Dec. Jan.-Mar. Total Against 2006-07 2006 2007 2006-07 Annual (m) (m) (m) (m) Target 1,92,000 Unscheduled 3,500 3,500 1,99,000 1,33,742 715 4,193 905 1,39,555 63,300 150 1,500 500 65,450 1,97,042 865 5,693 1,405 2,05,005 103% 163% 40% 103%

Agency

CMPDI MECL State Govts. -M.P. & Chhattisgarh -Orissa Total

Note: Drilling by CMPDI, for the period April to Dec06, includes 5,402m of Promotional Drilling, 97,063m of Detailed Drilling in CIL blocks, 2,676m of drilling in CIL-ONGC CBM JV block and 28,601m of Detailed Drilling in Non-CIL/Captive Mining blocks. MECL & State Govts. have drilled in CIL blocks only. 4.15 During the period April to December'06, CMPDI has recorded a productivity of 336 metres, per drill, per month, which is higher than achieved in same period of previous year, i.e. 322 metre/drill/month. The overall productivity per drill per month - 36 Ministry of Coal-Annual Report: 2006-07

for all agencies is 306m, which also is higher than achieved (277m) in same period of previous year. 4.16 The details of Coal Company Command area wise and agency-wise exploratory drilling for coal during April to December 2006 are given in the table below:
Agency and Company Command Area-wise Exploratory Drilling Achievements by CMPDI & Its Contractual Agencies During 2006-07 (in CIL, Non-CIL and Promotional Blocks) RI/ Company Annual Target Command Area (RE) 2006-07 (m) CMPDI: RI-I/ECL/CIL22000 ONGC CBM JV RI-III/CCL/ 31400 BCCL RI-IV/WCL/ 31000 MCL RI-V/SECL 52600 RI-VI/NCL 12000 RI-VII/MCL 43000 CMPDI 192000 TOTAL MECL: RI-IV/WCL Unscheduled DGM(M.P./ Chhattisgarh): RI-V/SECL 3500 DG(Orissa): RI-VII/MCL 3500 GRAND 199000 TOTAL Achieved April to Dec. 2006 (m) 15648 20635 21033 39266 7733 29427 133742 Projected Jan. to Mar. 2007 (m) 6400 11000 10000 15500 4300 16100 63300 Projected Total 2006-07 (m) 22048 31635 31033 54766 12033 45527 197042

715 4193 905 139555

150 1500 500 65450

865 5693 1405 205005

4.17 Drilling in Non-CIL Blocks: Out of the total drilling stated above for April to December'06, a sum of 28,601m of detailed drilling have already been carried out in Non-CIL/Captive Mining blocks. It is expected that 22,200m more will be drilled during January to March 07. Departmental drills of CMPDI will carry out total

- 37 Ministry of Coal-Annual Report: 2006-07

drilling in ten Non-CIL blocks. The details of the blocks taken up and drilling carried out is given in table below: Coalfield Blocks Achieved April to Dec. 2006 (m) 331 360 3462 5909 1993 3652 1327 6665 4902 28601 Projected Jan. to Mar. 2007 (m) 5000 3000 3000 3000 8200 22200 Projected Total 2006-07 (m) 331 360 8462 8909 1993 3652 1327 3000 9665 13102 50801

Agency: CMPDI N.Karanpura Babupara Rautpara Kerandari B&C S.Karanpura Tokisud-II Sohagpur Manpura Dhanpura Batura Singrauli Chhatrasal Talcher Mahanadi Machhukata Total in Non-CIL Blocks

4.18 Promotional Drilling by CMPDI: CMPDI continued the Promotional Drilling in Ashoka Karkata West blocks of North Karanpura coalfield and Chimri block of Tawa Valley coalfield in 2006-07 also. Additionally, Bishnupur block in Tawa Valley coalfield has also been taken up in 2006-07. A total of 5,402m of Promotional Drilling have been carried out by CMPDI during the period April to December 2006. It is expected that about 3000m more will be drilled during the remaining period of 2006-07, as detailed below: Coalfield Block Achieved Projected April to Dec. Jan. to Mar. 2006 (m) 2007 (m) 3639 373 1390 5402 1400 0 1600 3000 Projected Total 2006-07 (m) 5039 373 2990 8402

Agency: CMPDI N.Karanpura Ashoka Karkata West Tawa Valley Chimri Bishnupur Total in Promotional Blocks GEOPHYSICAL SURVEYS:

4.19 CMPDI has carried out the following work during the period April to December 2006: a. Geophysical Logging: Boreholes drilled for exploratory drilling are logged by existing Geophysical logging instrument to get the insitu information of different strata encountered in the borehole. CMPDI carried out a total of 13,697 metre of - 38 Ministry of Coal-Annual Report: 2006-07

geophysical logging during the period April to December 2006. It expected that another 6900m of logging would be carried out during the period January to March 2007. The details are given below: Blocks Depth Logged (in metre) Actual April to Projected January Projected December 06 to March 07 Total 2006-07 4051 1000 5051 6569 1400 7969 2876 3500 6376 201 1000 1201 13697 6900 20597

CIL CBM Non-CIL Promotional Total

b. Surface Geophysical Surveys: CMPDI has carried out surface geophysical surveys in CIL, Non-CIL and Promotional blocks for delineation of coal seams, assessment of its geometry in shallow and deep areas and identification of intrusive/basement formations. Following work have been carried out during the period April to December 2006. The likely achievement for the period January to March 2007 are also given below:

Electrical Survey Blocks


CIL/Others Non-CIL Promotional Total Apr. Dec. 06 Projected Jan.- Mar.07 (April to December 2006) Vertical Electrical Profiling Sounding (Nos) (Line Km) 26 99 13 17 39 116 100 100

Magnetic Survey (April to December 2006) (No. of Stations) 1282 505 1190 2977 1600

HYDROGEOLOGICAL STUDIES: 4.20 Following Hydro-geological Studies have been carried out by CMPDI during the period April to December 2006: a) Hydro-geological studies for EMP preparation in 1 project area of ECL have been completed and reports submitted. Studies are in progress in 6 other project areas of ECL and 2 of BCCL. Studies for two project areas one each in ECL and BCCL are likely to be completed by March '07. b) Hydro-geological studies for preparation of EMPs of 11 project areas of CCL are in progress. Two more R&D projects for preparation of hydro-geological and watershed model for West Bokaro Coalfield are in advance stage of completion.

- 39 Ministry of Coal-Annual Report: 2006-07

c)

d)

e) f)

Hydro-geological studies for CGWA clearance for 13 WCL projects have been taken up during 2006-07. Out of these, three studies have been completed and reports submitted whereas studies for 10 other project areas are in progress. Two more reports are likely to be submitted during January to March07. Hydro geological notes on ground water condition of 14 projects have also been completed during this period. CMPDI is monitoring groundwater levels of 38 MOEF approved projects in WCL area. Special hydro-geological studies in 7 other areas have been taken up apart from studies for GR/PR preparations. Twenty-one SECL projects have been taken up for hydro geological studies for EMP clearance from MOEF and CGWA during April to December,06. Report on one blocks have already been submitted whereas 5 more reports are likely to be submitted in remaining period of 2006-07. For temporary work permit, hydro-geological studies of 13 project areas are in progress. The mine water problem studies in 3 areas have been completed during the period whereas special hydro geological studies are underway in 2 project areas of SECL In NCL area, hydro-geological studies for EMP of 4 blocks have been completed and reports submitted. Apart from above CIL areas, hydro-geological investigations in KotreBasantpur and Pachmo Blocks of West Bokaro coalfield have also been taken up for Tata Steel whereas Lanjigarh Bauxite mines, Orissa have been studied for Orissa Mining Corporation, Govt of Orissa.

GEOSYSTEMS: 4.21 CMPDI looks after the computerisation of geological data and preparation of geological models using software. In CMPDI, most of the Geological reports are prepared through an in-house developed package CEMPGEODOC and the imported modelling software MINEX. All the Regional Institutes of CMPDI, along with Headquarters, are equipped with geological modelling software MINEX. CMPDI has also taken up an MoC funded project on creation of coal database (Integrated Coal Resources Information System - ICRIS) under the Promotional Exploration Scheme of X plan. The theme of this project is to capture all available geological details of explored blocks from the GRs and mining data from the colliery plans into the magnetic media for creation of t e geological models. These would be h stored into a database RDBMS for GIS application and WEB enabled services for on-line access by different users. The project was sanctioned in October 2004 and following activities are in progress: a) Preparatory work, like establishment of 9 Data Centres is over. Most of the hardware and software have been procured and installed/commissioned at the Data Centres. The remaining few hardware and software are in the process of procurement. - 40 Ministry of Coal-Annual Report: 2006-07

b)

Borehole data capture from old GRs i continuing and the work of about 500 s GRs have been completed during the period April to December 2006. The data capture of another 140 GRs is expected during January to March 2007. Vectorisation/ digitisation of colliery maps/key maps of GRs started in the month of December 2006. The procurement of Geo-Mining Modelling software, MS SQL software and Colour Plotter are in the process of tendering. Initial exercise for Database creation has been taken up. Integration of survey reference points has been taken up at some Data Centres.

c) d) e) f)

DOCUMENTATION: 4.22 A total of eleven Geological Reports have been submitted during the period April to December 2006 for the Detailed Exploration of coal and 9 more Geological Reports are under various stages of preparation. It is likely that 7 more GRs will be submitted in the remaining period of 2006-07. RESOURCE ESTIMATION: 4.23 A total of 0.87 Billion Tonnes of coal resources have been estimated during the period April to Dec.06, out of which 0.54 Bt is in Proved category and 0.33 Bt is under Indicated category. REMOTE SENSING: 4.24 During April 2006 to December 2006 following jobs were completed / under progress: a) Land use/cover mapping of buffer zone of following mining projects based on satellite data have been completed for preparation of environmental management plan (EMP) and water balance study: i) ii) iii) iv) v) Chitra, Gaurangdih and Kunustoria OCPs of Eastern Coalfield Ltd. (ECL). Golukdih, Shatabdi, Dahibari Basantimata and Chaptoria OCPs of Bharat Coking Coal Ltd. (BCCL). Ashoka, Purnadih and New Giddi C OCPs of Central Coalfield Ltd. (CCL). Bhubaneswari, Samleswari, Basundhara and Kaniah-II OCPs of Mahanadi Coalfield Ltd. (MCL). Gevra, Dipka and Kusmunda OCPs of South Eastern Coalfield Ltd. (SECL).

- 41 Ministry of Coal-Annual Report: 2006-07

b)

Digital processing of leasehold areas of Bhanegaon, Gondegaon and Umrer OCPs of Western Coalfield Ltd and Ashoka and Piparwar OCPs of Central Coalfield Ltd is under progress for monitoring of land environment towards compliance of MOEF stipulation. Land use/cover mapping of buffer zone of 21 mining projects of different subsidiaries of CIL is under progress. Settlement mapping of six villages of Lakhanpur project of Mahanadi coalfield Ltd. based on CARTOSAT & IKONOS satellite data is under progress. CIL R&D project titled Development of methodology for rapid volumetric analysis of excavated in-situ overburden using high resolution satellite, ALTM, terrestrial laser scanner supported with ETS through Digital Photogrammetric Technique" in collaboration with NRSA is under progress.

c) d)

e)

LABORATORIES:

4.25 CHEMICAL LABORATORY


Chemical laboratory has carried out characterisation of coal on borehole coal core samples from 15 blocks explored by CMPDI covering 12 Coalfields. During the period from April 2006 to December 2006, 3668 m of coal cores were processed and 10091 number of samples were analysed for quality evaluation and its down stream utilisation. In the balance period of 2006-07 i.e. between January 2007 to March 2007, additional 1440 m of coal cores are expected to be processed and about 3300 number of samples are likely to be analysed. In addition to the above, following special jobs were undertaken:a. b. Detailed characterisation of ROM coal from Bina OPC, NCL has been completed and Report submitted to NCL. Detailed characterisation of ROM coal from Dudhichua OCP, NCL has been completed. The report is under preparation and will be submitted by March 2007.

4.26 COAL PETROGRAPHY LABORATORY


During the period from April 2006 to December 2006, the laboratory has undertaken petrographic study (vitrinite reflectance and maceral analysis), minerals in coal through XRD and shape, size and cleat study through SEM of 400 coal samples from different blocks coverings 10 coalfields. Petrographic analysis of 15 number of imported coal samples and petrographic and mineral study of 53 coal samples were also carried out as outside consultancy job. Dust analysis through XRD has also been undertaken to find out the respiratory particulate matters for incorporation in EMP. During the balance period i.e. between January 2007 to March - 42 Ministry of Coal-Annual Report: 2006-07

2007, additional 125 samples are expected to be studied for petrographic study, minerals in coal through XRD, shape, size and cleat study through SEM. This is the only laboratory in the country where all the f ur petrographers are o accredited by International Committee of Coal and Organic Petrology (ICCP).

4.27

WASHERY LABORATORY

The coal preparation laboratory has carried out washability test, proximate analysis and characterisation studies on seven coal samples of different coal companies like WCL, CCL, ECL & exploration block during April 2006 to December 2006 for setting up new coking and non-coking coal washeries and for the purpose of sponge iron industry. Additional three samples are proposed for detail washability test during balance period of 06-07. Following two CIL R&D projects are under implementation: a. CIL R&D project on Characterisation of cleat in coal from Raniganj and Jharia Coalfields has been completed and report has been submitted to CIL. b. CIL R&D project on resource assessment and characterisation study of non-coking coal for Sponge Iron Industry is in progress. COAL BED METHANE 4.28 As per Govt. of India CBM policy, consortium of CIL and ONGC has been allotted 2 blocks on nomination basis one each in Raniganj and Jharia coalfields and has entered into a contract with Govt. of India for development of coalbed methane. The Govt. of Jharkhand granted the Petroleum Exploration License (PEL) for Jharia CBM block in August03. Consequent upon the geological exercise jointly carried out by CMPDI & ONGC, location of 8 slim holes has been finalised in Jharia CBM Block. Slimhole drilling commenced from 30.12.04 and all the 8 slimholes have since been completed. 4.29 The Govt. of West Bengal granted the Petroleum Exploration License (PEL) for Raniganj CBM block in June04 and geological exercise for locating 8 slim holes to be drilled in Raniganj CBM block were taken up jointly by CIL-ONGC. Slimhole drilling of the identified boreholes was taken up on 27.03.06 and 4 slimholes have so far been completed while 2 are under progress. 4.30 CMPDI has taken up studies related to "Assessment of Coalbed Methane Gas-in-Place Resource of Indian Coalfields" through boreholes being drilled under promotional exploration (X Plan period) being funded by Govt. of India with a total plan expenditure of Rs 8.83 crores. 4.31 CBM related studies have been carried out in 18 boreholes and results have been received from the analytical agency (CMRI) for 9 boreholes. The studies are continuing in the more boreholes identified for the purpose. - 43 Ministry of Coal-Annual Report: 2006-07

4.32 An MOU between CIL and ONGC for pursuing UCG pilot scale studies has been signed. For selection of suitable block for pilot scale studies, data package for five perspective blocks has been prepared and submitted to ONGC. The data packages were evaluated by Soviet consultants appointed by ONGC and they have advised collection of additional data in 1 block for further studies. Work has been taken up for generation of additional data.

UNDP/Global Environment Facility (GEF)- GoI Project : Coalbed Methane Recovery and Commercial Utilisation
4.33 The demonstration project Coalbed Methane Recovery & Commercial Utilisation was approved by the Govt. on 15.09.99, under the S&T plan of Ministry of Coal. The project, with an estimated cost of Rs 76.85 crores, is being funded jointly by the Global Environment Facility (GEF)/ United Nations Development Programme (UNDP) and Govt. of India (GoI). The project is under implementation w.e.f 15.9.99 jointly by Central Mine Planning & Design Institute Ltd. (CMPDI) as main implementing agency and Bharat Coking Coal Ltd (BCCL) as co-implementing agency, on behalf of the Ministry of Coal. Project sites are Moonidih and Sudamdih mines of BCCL in Jharia coalfield. 4.34 In July 2004, Department of Economic Affairs had given no objection to the extension of the project till September2006. Thereafter the Project RCE (June04) was cleared in the EFC held on 01.11.04 chaired by Secretary (Coal). The EFC in conclusion approved the Revised Cost Estimates (RCE June04) for Rs. 92.427 Crores with completion time up to October 2006. Finally, Government of India, communicated its approval to the RCE-June2004 of UNDP/GEF-GoI: Coalbed Methane Recovery and Commercial Utilisation Project (IND/98/G34) for Rs 92.427 crores in August 2006. 4.35 While according approval, it was mentioned that (i) No further cost and time overruns would be allowed and the project must be completed by December 2007 as proposed in the Mid-term evaluation report, (ii) a proper work plan should be prepared within a period of two months in consultation with UNDP, and (iii) the CBM clearing house should be created in CMPDIL, for which purpose satisfactory operating cost sources must be identified. GOALS a) b) To harness methane to minimize safety risks in mines, to utilize potential energy source and to mitigate damage to atmosphere; To bring to the country state-of-art methodology for resource assessment and recovery techniques of CBM with due regard to Indian conditions; and To demonstrate utilisation of the exploited methane.

c)

STRATEGY For developing the coal bed methane resources, it is proposed - 44 Ministry of Coal-Annual Report: 2006-07

a) b) c)

To drill ahead of mining to pre-drain the gas in coal seams, To recover gas from surface by vertical drilling in the virgin/gob areas, and To recover gas in-seam by long hole UG drilling

PROPOSED UTILISATION Methane gas recovered from these two sites will be brought to the surface and its envisaged uses are: a) In stationary IC engine generator set (1 MW installed capacity) for power generation at Moonidih. b) For fuelling the compressed gas in a fleet of 10-tonne trucks to run at Sudamdih on compressed CBM. ACTIVITIES PROPOSED a) a. b. b) c) Drilling of 7 Surface Vertical CBM wells 5 at Moonidih 2 at Sudamdih Drilling of Gob wells at Moonidih Underground Wells a. Sudamdih b. Moonidih

4.36 Status of activities at project sites a) Location of the five vertical well sites and one Gob well site at Moonidih has been finalised. Similarly, location of the two vertical well sites at Sudamdih has been finalised. Location of underground well sites at Sudamdih in XV & IX/X seams, and at Moonidih in XVI & XVIII seams has been finalised. Drilling activities for vertical wells at Moonidih commenced on 14th Sept05. Drilling of 1st CBM well was completed at the depth of 1059.30m and 5 Casing was lowered down to depth of the 1054m and well head was fitted to undertake further job like perforation, hydro-fracturing, testing for production.
nd Drilling of 2 well of 12 size was completed on 9th Oct06 down to depth of 204m and thereafter 95 /8 size casing was lowered and cementation job was completed by ONGC on 17th Oct06. Drilling activities for 8 size well commenced for the target depth 1100m on 31st Oct06 and present drilled depth is 217m. During drilling operation it was noticed that hydraulic

b) c)

d)

- 45 Ministry of Coal-Annual Report: 2006-07

air clutch assembly is not working properly and there is profuse air leakage from diaphragm. OEM was approached for supply of fresh clutch assembly and spares. Clutch make is of Twin Disc, USA and Indian representative informed that it will take minimum 20 weeks to supply the replacement. Replacement spares for repairing has been ordered and drilling will commence soon. e) Functionality test by DBT Service personnel was completed on surface at Sudamdih mine on 17th Oct06. DBT technical team along with CBM team made presentation to DGMS on 18th Oct06 for the approval of unit for use in underground mine. M/s DBT is furnishing desired information to DGMS. On receipt of DGMS approval unit will be shifted in the Sudamdih underground mine for performance test and training for the commencement of underground drilling. Immediately on receipt of Steering Tool & Accessories underground drilling will commence subject to permission of DGMS. Route survey for laying of HDPE (High Density Polyethylene) gas pipes on sub-surface to connect the surface and underground wells to the proposed gas collection stations at Moonidih and Sudamdih completed. Gas pipeline laying will be undertaken on receipt of Fusion machines. ----- x ----- x ----- x -----

f)

g)

- 46 Ministry of Coal-Annual Report: 2006-07

CHAPTER - 5
PLANNING AND ROAD MAP FOR COAL SECTOR
Coal Sector 5.1 History of coal mining in India dates back to 1744, when coal was first mined in the Raniganj coalfield in West Bengal. However, coal production in the preindependence era and in the first two decades after independence was very slow. Annual production was stagnant at 70 million tones during late sixties and early seventies and was inadequate to meet growing demand of coal for generation of power and for other industrial and metallurgical purposes. The oil crisis of early seventies spurred the Government for taking hard look at coal sector. Recognizing the importance of coal, a primary source of energy in the national economy and the massive investment needed to meet the huge demand, Coal industry in India was nationalized in phases in 1972 and 1973. The primary goal for nationalized coal industry was to ensure a scientific approach to exploration and exploration of coal deposits with due attention to safety, conservation and environmental aspects while accelerating the production level through substantial investment so as to reduce Indias dependence on oil. TENTH FIVE YEAR PLAN (2002-07) Coal Demand 5.2 At the time of formulation of Xth FYP the Planning Commission assessed the All India Coal demand at 460.50 Mt.(plus 5.24 Mt. Middling) and projected an indigenous coal production of 405.00 million tones (CIL=350.00 MT, SCCL=36.13 MT, and Others=18.87 MT including Meghalaya Coal) for the same period. However, during the Mid-Term Appraisal (MTA), All India coal demand has been revised to 473.18 Mt. and indigenous coal production has been assessed at 431.50 MT by the Planning Commission. 5.3 All India coal demand for 2006-07 was further revised to 474.18 mts and indigenous coal production has been projected at 432.50 mts (RE). 5.4 The demand for the terminal year of the Xth Five Year Plan, as projected by the Working Group originally assessed and revised during Mid Term Appraisal (MTA) by the Planning Commission is shown in the table below:-

- 47 Ministry of Coal-Annual Report: 2006-07

Coal Demand Sectors X Plan (2006-07) (finalized in consultation with Planning Commission) 37.21 37.21 317.14 (3.74) 28.26 (1.40) 24.56 53.33 (0.10) 423.29 (5.24) 460.50 (5.24) (Million Tonnes) X Plan: (2006X Plan: 07) (2006-07) BE (As per MTA)

Coking Coal Steel+Coke Oven Sub Total Coking Non Coking Coal Power (Utility) Power (Captive) Cement BRK & Others Sub Total Non Coking Coal Total

42.70 42.70 322.00 28.26 25.40 54.82 430.48 473.18

43.70 43.70 322.00 28.26 25.40 54.82 430.48 474.18

* Inclusive of middling. Note : Figures in the brackets indicate Middlings. 5.5 Against the projection of 10th Plan, the demands for the year 2002-03, 200304, 2004-05, 2005-06 and 2006-07 assessed by Planning Commission are given below:(million tones) Demand 365.98 (3.25)* 380.91 (3.19) * 404.19 (3.58) * 445.65 (3.64) * 448.73 (3.33) * 474.18

Year 2002-03 2003-04 2004-05 2005-06 (BE) 2005-06 (RE) 2006-07**

* Figures in bracket represent middlings. ** As estimated by Planning Commission during formulation of Annual Plan 2006-07. - 48 Ministry of Coal-Annual Report: 2006-07

Coal Production 5.6 Subsidiary wise Coal Production target at RE stage as well as actual for the years 2004-05 & 2005-06 of CIL are given below. Coal production target (RE) and actual upto the month of December 2006 are also given: (in Million Tonnes)
COMPANY 2002-03 Target (R.E.) Actual 2003-04 Target (RE) Actual 2004-05 Target (R.E) Actual 2005-06 Target (R.E) Actual 2006-07 Target (R.E) Actual Upto Dec.06 (Prov.) 21.111 16.579 23.521 37.526 30.785 62.465 57.326 0.740 250.053 26.10 18.98 295.133

ECL BCCL CCL NCL WCL SECL MCL NEC CIL SCCL Others Total

28.00 25.50 34.25 45.00 37.20 66.50 49.20 00.65 286.30 32.50 17.00 335.80

27.18 24.15 36.98 45.10 37.82 66.60 52.23 0.63 290.69 33.16 17.39* 341.24

28.00 24.00 38.50 46.50 37.85 69.00 55.00 00.65 299.50 33.50 19.30 352.30

28.00 22.70 37.34 47.03 39.53 71.01 60.05 0.73 306.38 33.85 20.83* 361.06

27.30 22.40 37.40 49.68 41.00 78.40 66.40 0.60 323.18 35.00 20.98 379.16

27.253 22.314 37.39 49.95 41.41 78.55 66.08 0.628 323.575 35.30 22.97* 381.845

32.44 24.22 40.40 50.80 41.90 83.00 72.00 1.05 345.81 36.00 26.38 418.19

31.11 23.31 40.51 51.52 43.20 83.02 69.60 1.10 343.39 36.14 27.48 407.01

33.00 24.20 42.00 52.00 42.00 88.50 80.50 1.60 363.80 37.50 31.20 432.50

* Excluding Meghalaya Coal Production.

5.7 The all India coal demand assessed for the year 2006-07 (RE) is 474.18 million tones. Against this demand, availability of coal in 2006-07 (RE) is indicated as under: (In Million Tonnes) Coal India Limited Singareni Collieries Co. Ltd. Others* Stock Liquidation by CIL Total Domestic Availability Gap (against indigenous supply) 363.80 37.50 31.20 2.29 434.79 41.79

*(IISCO/DVC/J&K/BSMDCL/TISCO/Captive Mining/Meghalaya 5.8 Thus there would be a gap of 39.39 Mt. between demand and supply and this is likely to be met through import mainly by Steel, Power and Cement sectors.

- 49 Ministry of Coal-Annual Report: 2006-07

Man Productivity (OMS) Year Coal India Limited UG 0.69 0.67 0.69 0.69 0.70 0.68 0.71 0.69 0.69 0.71 0.73 0.71 0.73 0.72 0.68 0.75 OC 6.86 6.53 6.30 6.96 6.64 6.67 7.12 7.16 7.18 7.99 7.95 7.51 8.58 8.54 7.80 8.92 Overall 2.58 2.58 2.67 2.71 2.77 2.82 2.92 3.01 3.05 3.33 3.30 3.26 3.56 3.60 3.29 3.84 (Figures in Tonnes) Singareni Collieries Company Ltd. UG OC Overall 0.84 7.98 1.66 0.86 7.88 1.75 0.86 7.66 1.88 0.94 0.90 0.86 1.02 0.85 0.85 1.05 0.86 0.89 1.04 0.95 0.86 1.07 6.80 7.37 7.67 7.37 7.80 8.83 7.89 8.90 9.60 8.17 9.80 9.66 8.20 1.80 1.90 1.81 1.94 1.90 1.99 2.16 2.00 2.16 2.3 2.30 2.21 2.48

2002-03 (BE) 2002-03 (RE) 2002-03 (Actual) 2003-04 (BE) 2003-04 (RE) 2003-04 (Actual) 2004-05 (BE) 2004-05 (RE) 2004-05 (Actual) 2005-06 (BE) 2005-06 (RE) 2005-06 (Actual) 2006-07 (BE) 2006-07 (RE) 2006-07 (upto Nov.) (Prov.) 2007-08 (BE)

Tenth Five Year Plan Outlay 5.9 The total plan outlay assessed by the Working Group on Coal and Lignite for 10th Five Year Plan finalized by Planning Commission and revised during MTA are given below. ( Rs. in Crores) Name of Allocation Allocation Revised during Company/Scheme Projected originally MTA by the by Working assessed by the Planning Group Planning Commission Commission Coal India Limited 14310.00 14310.00 10975.13 Singareni Collieries 2113.00 2113.00 1550.00 Company Limited Neyveli Lignite Corporation 9145.00 14133.48* 5123.17 Ltd. - 50 Ministry of Coal-Annual Report: 2006-07

Regional Exploration Science & Technology Environmental Measures Subsidence Control Detailed Drilling Rehabilitation & Control of fire and subsidence in Jharia & Raniganj coalfields Research & Development Centre Regulatory Framework Review Project Voluntary Retirement Scheme funded Through Ministry of Coal Total

435.00 100.00 163.00

275.80 100.00 163.00

261.55 72.93 150.52

-----

70.66 ---

93.84 ---

----430.00

----425.06

----425.06

26696.00

31591.00

18652.20

* The increase in fund requirement over the assessment made by the Working Group is largely due to increase in outlays of Neyveli Lignite Corporation (NLC). Plan Expenditure: 5.10 BE, RE & Actuals for the year 2002-03,2003-04,2004-05,2005-06 and BE,RE & actual upto December,2006 for the year 2006-07 are given below: (Rs. in crores)
Year 2002-03 (BE) 2002-03 (RE) 2002-03 (Actual) 2003-04 (BE) 2003-04 (RE) 2003-04 (Actual) 2004-05 (BE) 2004-05 (RE) 2004-05 (Actual) 2005-06 (BE) 2005-06 (RE) 2005-06 (Actual) 2006-07 (BE) CIL 2190.00 1700.00 1192.18 2240.00 1846.00 1156.82 2310.00 1877.35 1188.31 2814.35 2224.00 1611.23 3063.70 SCCL 405.00 227.00 139.49 340.00 205.00 163.42 325.00 275.00 274.87 395.00 395.00 424.18 577.09 NLC 584.95 617.60 434.83 455.40 314.25 158.04 480.70 267.00 143.69 640.00 368.00 379.68 990.00 S&T/R.E./FMSC D.D./ V.R.S# 311.77 263.07 157.43 285.90* 238.87* 182.05 223.32 275.67 189.83 152.05 255.00 228.25 168.71

- 51 Ministry of Coal-Annual Report: 2006-07

2006-07 (RE) 2420.00 2006-07 (Actual till 1476.10 Dec. 06) (Prov.)

577.09 294.93

945.86 662.87

349.34 59.70

* 10% of budgetary provision to be earmarked for NEC. # S&T Science & Technology R.E.- Regional Exploration EMSC-Environmental Measures & Subsidence Control D.D.- Detailed Drilling V.R.S.- Voluntary Retirement Scheme. Neyveli Lignite Corporation Tenth Five Year Plan 2002-07 Annual Plan 2002-03,2003-04,2004-05,2005-06,2006-07 and BE for 2007-08 5.11 The targeted figures (BE,RE and actual for 2002-03 to 2005-06). BE,RE for the year 2006-07 and actual figures upto the month of December,2006 and targeted figures for the year 2007-08 of lignite production, power generation, Urea and coke production are given below: Year Lignite (million tones) Power Gen. (million units) 14638.00 12350.00 14968.42 15006.00 14837.00 16388.21 15286.00 15286.00 16745.41 15705.00 15705.00 16242.00 15705.00 14853.00 10944.00 Urea (tones)* Coke (tones)*

2002-03 (BE) 19.95 120.000 0.000 2002-03 (RE) 18.85 0.000 0.000 2002-03 (Actual) 18.62 0.000 0.000 2003-04 (BE) 20.90 0.000 0.000 2003-04 (RE) 20.90 0.000 0.000 2003-04 (Actual) 20.56 0.000 0.000 2004-05 (BE) 21.00 0.000 0.000 2004-05 (RE) 21.00 0.000 0.000 2004-05 (Actual) 21.57 0.000 0.000 2005-06 (BE) 20.40 0.000 0.000 2005-06 (RE) 20.40 0.000 0.000 2005-06 (Actual) 20.44 0.000 0.000 2006-07 (BE) 20.40 0.000 0.000 2006-07 (RE) 19.38 0.000 0.000 2006-07 (Actual 13.97 0.000 0.000 till Dec. 06) (Prov.) 2007-08 (BE) 20.05 15705.00 0.000 0.000 * The fertilizer plant was not in operation since January,2002 on account of large accumulation of stock of urea owing to marketing constraints because of availability of imported urea at cheaper price. A decision to close the fertilizer unit was taken in January,2003 during standing committee meeting. - 52 Ministry of Coal-Annual Report: 2006-07

5.12

Expenditure Year 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08(BE) BE 584.95 455.40 480.70 640.00 990.00 2006.96 RE 617.60 314.25 267.00 368.00 945.86 --(Rs.in crores) Actuals 434.83 158.04 219.01 379.68 662.87 ---

ELEVENTH FIVE-YEAR PLAN

5.13

Coal Demand: The Working Group for Coal & Lignite for formulation of XI Plan has assessed a coal demand of 731.10 Mt by terminal year of XI Plan i.e. 2011-12. The annualized growth rate of coal demand is expected to be about 9% over X Plan terminal year demand (BE) of 474.18 Mt. The all India coal demand for the year 2007-08 has been assessed at 492.50 MT. Sector wise break-up are as under: (Million Tonnes)
Sl.No 1 2 3 4 5 6 Sectors Steel & Coke Oven Power (Utility) Power (Captive) Cement Sponge Iron BRK & Others Total XI Plan (2011-12) Projections 68.50 483.00 57.06 31.90 28.96 61.68 731.10 2007-08 38.00 333.00 33.60 26.80 15.10 49.00 492.50

5.14

Coal Supply: The indigenous coal supply projection in the terminal year of XI Plan is projected to be 680.00 Mt. The supplies from CIL & SCCL sources are expected to be 520.50 Mt and 40.80 Mt respectively. Others producers comprising of PSUs, State Enterprises and captive producers are anticipated to increase to a level of 118.70 Mt. The demand-supply gap emerging from these projects would be 51.10 Mt which will be met by imports of 40.85 Mt of coking coal and 10.25 Mt of non-coking coal. The scenario stated above is summarised in the table below:

- 53 Ministry of Coal-Annual Report: 2006-07

Source CIL SCCL Others Total Indigenous Supply Import - Coking - Non Coking Total Imports Gap 5.15 OMS Year Coal India Ltd. UG 0.75 0.94 OC 8.92 13.18

XI Plan 2011-12 (Proj.) 520.50 40.80 118.70 680.00 40.85 10.25 51.10 0.00

(Million Tonnes) 2007-08

385.90 38.04 37.95 461.89 20.00 10.61 30.61 0.00

2007-08 2011-12 5.16

Singareni Ltd. Overall UG OC 3.84 1.07 8.20 5.54 1.14 8.40

(Figures in Tonnes) Collieries Company Overall 2.48 2.67

CAPITAL OUTLAY: Working Group on C&L for formulation of XIth Five Year Plan to achieve the supply potential indicated above by CIL & SCCL and growth plan envisaged by NLC, the PSU coal companies have proposed a capital outlay of Rs.34258.96 Crs during the XI Plan period. The XI Plan outlay for different departmental schemes is proposed for a total of Rs.7702.00 Crs. Therefore, Ministry of Coal proposes a total capital outlay of Rs.41960.96 Crs. MOC has proposed an outlay of Rs.43476.37 Crs. during the XI Plan period, details of which are under: PSU/ SCHEME Assessed Proposed by W. G. By MOC (2007-12) 15874.96 17390.07 3340.30 3340.30 2826.00 2860.00 12218.00 15044.00 34259.26 2007-08 (B.E.) 2472.14 570.58 795.83

Coal India Limited Singareni Collieries Co Ltd. Neyveli Lignite Corporation Ltd. (Mines) (Power) (Total NLC) Sub - total ( Coal PSUs) - 54 -

12218.00 1211.14 15044.00 2006.97 35774.37 4897.34

Ministry of Coal-Annual Report: 2006-07

Departmental schemes Science & Technology (S&T) 100.00 100.00 22.54 Regional Exploration 345.15 345.15 63.59 Detailed Drilling 1110.09 1110.09 195.93 Env. Management & Subsidence Control 3838.25 3838.2531 31.12 Conservation and Safety in coal mines 575.45 575.45 135.00 Development of transport infrastructure 807.72 807.72 75.00 in coalfield areas Coal Controller Office 1.10 1.10 0.22 Information Technology 154.04 154.04 11.90 North-Eastern Region 770.20 770.20 59.48

Sub - total (Departmental Schemes) 7702.00 Grand Total MOC 41961.26 Expert Committee:

702.00 594.77 43476.37 5644.46

5.17 Government of India appointed a seven member Expert Committee under the chairmanship of Sri T.L. Shanker to prepare a comprehensive Road Map for the Modernization of the Coal Sector. (a) Committee felt that it would be desirable to submit Report in two parts with PART-I dealing with the short to medium term issues and PART-II dealing with the rest. Committee submitted Part -1 Report on 28.12.2005. The major recommendations made by the Expert Committee in Part-I of its report are as follows: i) As coal shall remain Indias primary source of commercial energy supply, a time-bound plan to cover the entire country by regional mapping in 15 years should be prepared by Geological Survey of India, Central Mine Planning and Design Institute and Ministry of Coal, Government of India. ii) Coal India Limited (CIL) may be granted the status of Navratna company and the subsidiaries of CIL may be granted the status of Mini Ratna companies in which case only those proposals of such a subsidiary would need government approval wherein the capital expenditure exceeds Rs. 500 crore. iii) The environmental issue in respect of projects should be taken up on priority consideration by the Government. iv) Planned imports of coal needs to be encouraged. v) Increasing proportion of all domestic coal that is not earmarked for Power Sector be brought into the E-auction market over the next 2 to 3 years.

(b)

- 55 Ministry of Coal-Annual Report: 2006-07

vi)

The current system of linkages feeding the power sector may be replaced with formal long term Fuel Supply and Transport Agreements that include the Railways.

vii) The procedures and processes need to be streamlined to expedite the allotment of the captive coal blocks in a transparent and effective manner. viii) All possible legal measures should be evolved to cancel the licenses issued earlier if the allottee has not taken adequate steps to bring the allotted mines to production or in setting up the end use units. ix) Coal price would need to be regulated in light of the market realities. The regulation of coal price has to be differentiating the pricing of coal for power generation since it consumes 80% of the domestic production and the quality of coal it consumes is not easily saleable to the steel and cement sectors. The Railway tariff for coal should be subject to a detailed review by an independent agency, preferably headed by a High/Supreme Court Judge. The Railways should in consultation with Planning Commission and the Ministries of Coal and Power determine the main corridors through which coal would move in very large quantities to power plants and examine the cost and feasibility of setting up dedicated trunk-routes for coal transport. E-auction has been introduced in CIL during the year 2005-06. It was decided initially to sell 10 million tonnes of coal by CIL subsidiaries through e-marketing for the year 2005-06 on trial basis, which was subsequently enhanced to 20 million tonnes. During the year 2006-07, the Government has allowed CIL to sell 36 million tonnes of coal through E-marketing. However, e-auction has since been stopped with effect from December 2006 following a judgment of Hon'ble Supreme Court declaring it illegal. The matter of granting status of Navratna to CIL and Mini Ratna Status to CIL subsidiaries is under consideration of Ministry of Coal. Under Increasing production through Emergency Coal Production Plan scheme, CIL has identified 16 opencast projects/mines where production from existing mines/projects will be enhanced to a higher level yielding additional 71.3 Mt. by 2012-13. Out of 16 projects, 15 projects have been approved by the Govt./coal companies and one project is in the process of approval. - 56 Ministry of Coal-Annual Report: 2006-07

x)

xi)

(c)

Based on the above, the following actions have been initiated: i)

ii) iii)

iv) v) vi)

CMPDI has been advised to enhance drilling capacity through outsourcing. De-reservation of some coal blocks in favour of power sector & others has been done. For promotion of Clean Coal Technologies action has been initiated with cooperation of Indo-US Working Group, Indo-EU Working Group and Asia Pacific Partnership etc. Part-II of the report is awaited.

d)

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

- 57 Ministry of Coal-Annual Report: 2006-07

CHAPTER - 6
COAL PROJECTS AND LAND MANAGEMENT
6.1. During the year 2006-2007 (01-04-2006 to 31-12-2006), 8 (eight) new projects and 2 (two) Advance Action Proposals (AAPs) were sanctioned by the Government. The list of such projects sanctioned by the government are given below:

Projects sanctioned by the Government from 1/4/2006 TO 31/12/2006.


Sl. No 1 2 3 4 5 6 7 8 Name of the projects Jhanjra LW (Phase-II) UG Magadh OC Ashok Expansion OC Block B OC Krishnashila OC Amlohhri Expansion OC Bina Extension OC Kusmunda Expansion OC Total Company ECL CCL CCL NCL NCL NCL NCL SECL Capacity (Mty) 1.70 12.00 5.00 (Incr.) 3.50 4.00 6.00 (Incr.) 6.00 4.00 (Incr.) 42.20 Capital cost (Rs. Crores) 287.17 469.78 471.66 746.04 789.88 1352.04 168.97 360.25 4645.79

Advance Action Proposals sanctioned by the Government from 1/4/2006 to 31/12/2006.


Sl. No. 1 2 Name of the AAPs Kaniha-II OC Chuperbhita OCP Total Company MCL ECL Latest Capacity (Mty) Latest capital (Rs.Crs.) 19.031 9.900 28.931

RCE/RPR sanctioned by the Government from 1/4/2006 to 31/12/2006.


Sl. No. 1 Name of the Project Madhuband Washery Project Company BCCL Latest Capacity (Mty) 2.50 Latest capital (Rs.Crs.) 271.7719

6.2. List of new projects / R evised Coal Estimates(ECE) / Revised Project Report (RPR) sanctioned by Coal India Limited (CIL) & its subsidiary companies / Singareni Collieries Company Limited (SCCL) under their delegated powers are given in Annexure-6A. - 58 Ministry of Coal-Annual Report: 2006-07

6.3 The number of mining projects of CIL and SCCL costing Rs. 2 crores and above sanctioned since nationalization till 31.12.2006 is as under:Costing Rs.20 to Rs.2 to 100 Crs 20 Crs. 16 9 19 9 50 56 19 178 46 89 90 65 3 70 75 17 409 40 Sancd. Cost (Rs. Crs) 5231.54 2010.31 4218.93 9080.77 3466.51 6813.21 3560.22 34381.49 5850.96 Ultimate Capacity (Mty) 62.88 40.68 91.91 81.20 59.66 120.33 118.31 594.97 74.56

Company ECL BCCL CCL NCL WCL SECL MCL CIL SCCL

More than Rs. 100 Crs 8 3 7 12 1 6 10 47 10

Total

113 102 91 24 121 137 46 634 96

6.4 As on 31.12.2006, out of total 487 mining projects of Coal India Limited (CIL) each costing Rs. 2 crores & above, 355 projects stand completed (including projects where coal reserves has since been exhausted) and 132 projects under various stages of implementation. Out of these 132 projects, 103 are on schedule and 29 are delayed. In Singareni Collieries Company Limited (SCCL), out of total 96 mining projects, 54 have been completed and out of the remaining 42 projects, 33 are on schedule and 9 are delayed. The company wise position is as follows:Company ECL BCCL CCL NCL WCL SECL MCL CIL SCCL Total No of Projects 67 70 70 24 108 107 41 487 96 No. of completed Projects 46 62 50 15 87 74 21 355 54 Ongoing Projects Total 21 8 20 9 21 33 20 132 42 On Schedule 16 5 13 8 18 26 17 103 33 Delayed 5 3 7 1 3 7 3 29 9

- 59 Ministry of Coal-Annual Report: 2006-07

6.5

STATUS OF PROJECTS MONITORED AT THE GOVERNMENT LEVEL:

At the Government level ongoing projects each costing Rs. 20 crores & above are being monitored. As on 31.12.2006, there are 129 such projects (Mining & NonMining) under implementation in Coal India Limited (CIL), Singareni Collieries Company Limited (SCCL) and Neyveli Lignite Corporation Limited (NLC). Summarised status of these 129 projects is as follows:Company No of Projects 95 30 04 129 Sanctioned Capital (Rs. Crs) 14014.14 1899.28 5660.31 21573.73 Ultimate Capacity (Mty) 195.410 29.437 6.600 231.447 No of Projects on Schedule 74 25 04 103 No of Projects Delayed 21 05 26

CIL SCCL NLC TOTAL

6.6 Details of on-going projects, company w costing Rs. 20 crores & above in ise, CIL, SCCL and NLC as on 31.12.2006 are given in Annexure-6B. 6.7 MAIN REASONS FOR SLIPPAGE IN THE IMPLEMENTATION OF PROJECTS ARE: a) b) c) d)
e) 6.8

Delay in acquisition of land and associated problems of rehabilitation, Delay due to adverse geo-mining condition, Delay due to fire, Delay due to shortage of fund and other misc. reasons. Delay due to law & order problems.

STEPS TAKEN TO IMPROVE PROJECT IMPLEMENTATION:

i)

Land acquisition and rehabilitation:


(a) (b) (c) Vigorous follow up action with land acquisition officials of State Govts. are being actively done to expedite acquisition proceedings. Regular meetings with State Authorities viz. Land Revenue Commissioner, LR Secretary and Chief Secretary are held to sort out acute problems. To overcome the problem of acquisition of land, forestry and environmental clearance, Advance Action for projects costing Rs. 100 crores and above are being sanctioned up to Rs. 20 crores in each case since April 1989 to help initiate processes involve for various clearances before sanction of the projects by the Government.

ii)

Geo-mining constraints:
Sophisticated geological and geo-physical exploration technique adopted for advance forecasting of geo-mining condition.

- 60 Ministry of Coal-Annual Report: 2006-07

iii)

Project Management: (a) Director (Projects & Planning) posted in each company with overall responsibility of implementation of projects. (b) Comprehensive guidelines for project formulation and monitoring issued by the Dept. of Coal. (c) The system of monitoring at various levels has been standardized. q Project monitoring is done on monthly basis or at shorter intervals at the area level by GM/CGMs and by Director (Projects) and CMDs at corporative level. q Status of project is also reviewed at every company board meeting by exceptions. q Mandatory review of the projects are carried out at company level when the expenditure of the project exceeds 50% of the sanctioned capital. q Projects, costing Rs. 100 crores & above, are also reviewed in CIL Board by exception. q Review in the administrative Ministry/Department at the level of Secretary is taken for major projects at regular intervals. q Progress reports in respect of Projects costing Rs.100 Crs. & above are also submitted to Department of Programme Implementation regularly.

6.9 i)

Environment and Forestry Clearances (EFCs): As per instructions of the Ministry of Finance, all proposals to be submitted for approval of Cabinet Committee on Economic Affairs should have prior environmental clearance. The environmental clearance is considered by an Expert Committee set up by the Ministry of Environment & Forests (MoEF), which scrutinizes the Environmental Management Plans of Coal Mining Projects for consideration of MoEF. Similarly forest land diversion cases are considered by Forest Advisory Council before the same is recommended to MoEF. On the basis of the recommendation of these bodies, the EMP & Forestry clearance are accorded by Ministry of Environment & Forests. A new notification S.O.No.1533 dated 14.9.2006 under environment (protection) Act. 1986 has been published in Gazette of India, extra ordinary part-III and Section-3, sub-section (ii) issued by Ministry of Environment and Forests. Guidelines by the Government on specific measures to cut delays in implementation of projects

ii)

6.10

In order to formulate improvements in project investment decision procedures, Group of Ministers (GOM) meeting was held on 13.6.2005. As per the decision of GOM, multilayer scrutiny of projects have been reduced and the - 61 Ministry of Coal-Annual Report: 2006-07

requirement of in-principle approval from Planning Commission and the Pre-PIB stage have been dispensed with. However, obtaining environmental clearance prior to consideration of the project by the Cabinet Committee on Economic Affairs (CCEA) has been kept mandatory. Land Management: Status of land acquisition under the CBA Act, 1957. 6.11 Acquisition proceedings under the Coal Bearing Areas (Acquisition & Development) Act, 1957 (CBA Act) are undertaken by the officials of the company. Underground as well as surface un-worked / virgin coal bearing land can be acquired under this Act. Problems of land acquisition: 6.12 Delay in acquisition of land is one of the major issues which leads to time and cost over run of the coal projects. 6.13 Company-wise position of acquisition of All Rights & Mining Rights under the CBA Act since nationalization to December 2006 is given below: Company-wise position of acquisition of all rights & mining rights under the coal bearing areas (Acquisition & Development) act 1957 since nationalization till December 2006. COMPANY AREA ACQUIRED (IN HA.) ALL RIGHTS MINING TOTAL RIGHTS 5933.12 74.88 6008.00 647.49 534.97 1182.46 35343.59 500.47 35844.06 11082.95 27074.92 38157.87 8281.13 53236.21 61517.34 18066.63 4083.15 22149.78 14673.00 NIL 14673.00 94027.91 85504.60 179532.51

ECL BCCL CCL WCL SECL MCL NCL TOTAL

LAND MANAGEMENT IN SCCL 6.14 SCCL is acquiring Patta lands under Land Acquisition Act, 1894 (L.A.Act) through State Government of Andhra Pradesh. For this purpose, SCCL submits a Requisition under Form-I as per L.A. Act to the concerned District Collector. The Collector after preliminary enquiry submits L.A. proposals to the State Government for placing before the Screening Committee of the Government. After approval of proposals by Screening Committee, the Administrative Department i.e., Energy - 62 Ministry of Coal-Annual Report: 2006-07

Department accords approval for the draft DN & DD proposals sent to the State Government by the Collector. After approval of DN & DD the same are published in the District Gazette and the News Papers as per the rules under the Act. As per the rules of the State Government, SCCL then deposits 80% of probable compensation with the Collector for the process of L.A. matter and the balance compensation amount is to be deposited before passing of Award by the Land Acquisition Officer (LAO). 6.15 SCCL requested the State Government to delegate powers to the concerned District Collector for approving DN & DD and publication of the same in order to avoid administrative delay in approving DN & DD by the Government. The State Government vide G.O.Ms.No.384 dated 3.6.2005 delegated powers u/s.4, 5A, 6 & Sub-sec.4 of Sec.17 of L.A. Act to Collectors to enable them to approve DN & DD for acquisition of land required for SCCL. Due to this delegation, the Land Acquisition process is progressing without any delays. From 01.04.2006 to 31.12.2006, SCCL acquired Acs.217-38Gts. under Land Acquisition Act for mining and allied activities. Prior to 01.04.2006, SCCL acquired A cs.22613-14Gts. In total SCCL acquired Acs.22831-12Gts. of Patta land under L.A. Act up to 31.12.2006. 6.16 SCCL is approaching State Government and GOI for diversion and lease of forest land required for its mining activities under Forest (Conservation) Act, 1980. As per the guidelines of Forest(Conservation)Act, equivalent extent of Non-forest land has to be identified and handed over to Forest Department in case of SCCL apart from payment of CA charges as demanded by the Forest Department unlike the case of CPSUs where if CA land is not available, Government is collecting double the CA changes in lieu of CA land. Identification of Non-forest land for CA purpose is causing delay in starting the Projects. From 01.04.2006 to 31.12.2006, SCCL acquired Acs.70-29Gts. Forest land under Forest (Conservation) Act for mining and allied activities. Prior to 01.04.2006, SCCL acquired Acs.10579-02Gts. In total SCCL acquired Acs.10649-31Gts. of Forest land under F.C. Act up to 31.12.2006.

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

- 63 Ministry of Coal-Annual Report: 2006-07

CHAPTER 7
COAL PRODUCTION, DISTRIBUTION AND MARKETING
7.1 Coal has been recognized as the most important source of energy for electricity generation in India. About 75% of the coal in the country is consumed in the power sector. In addition, other industries like steel, cement, fertilizers, chemicals, paper and thousands of medium and small-scale industries are also dependent on coal for their process and energy requirements. In the transport sector, though direct consumption of coal by the Railways is almost negligible on account of phasing out of steam locomotives, the energy requirement for electric traction is still dependent on coal converted into electric power. The Ministry of Coal is engaged in developing coal resources of this country in such a manner to meet the requirements of coal of different consuming sectors. Performance of coal sector in this respect has been impressive during the year 2006-2007 (upto Dec. 2006). ALL INDIA PRODUCTION OF COAL 7.2 Through sustained programme of investment and greater thrust on application of modern technologies, it has been possible to raise the production of coal from a level of about 70 million tonnes at the time of nationalization of coal mines in early 1970's to 407.02 million tonnes (Provisional) (All India excluding Meghalaya) in 2005-06. Certain significant statistics about coal and Lignite is given at Annexure-7A 7.3 Coal India limited and its subsidiaries are the major producers of coal. 250.073 million tonnes (provisional) of coal were produced by Coal India Ltd. and its subsidiaries during 2006-07(April-December) as against the production of 241.721 million tonnes in the year 2005-06 (April-December), showing a growth of 4.5%. 7.4 Singareni Collieries Company Limited (SCCL) is the main source for supply of coal to the southern region. The company produced 26.097 million tonnes(provisional) of coal during 2006-07 (April-December) as against 24.537 million tonnes during the corresponding period last year. Small q uantities of coal are also produced by TISCO, IISCO, DVC and others. The company-wise production, despatch and stock details for the last five years are given in Annexure-7B & Annexure-7C respectively. PRODUCTIVITY 7.5 Productivity is measured in terms of raw coal output in tonnes per manshift (OMS). There has been substantial improvement in OMS in Coal Companies during the last decade for CIL group of companies. As against an OMS of 0.58 tonne at the time of nationalization, OMS in Coal India Limited during 2006-07(April- 64 Ministry of Coal-Annual Report: 2006-07

December) has been 3.35 tonnes (provisional). In SCCL the OMS during 20052006(April-December) was 2.21 tonnes. Year wise details of productivity of the coal companies are at Annexure-7D. DISTRIBUTION OF COAL TO CORE SECTOR 7.6 Core sector consists of Power, including CPP, Steel, Cement, Defence, Fertilizer, exports Aluminum, Paper and Railways. Power and Cement sectors are allocated coal through Standing Linkage Committee (Short Term) operating under the aegis the Ministry of Coal comprising representatives of Parliament, Ministries of Government of India. Linkage Committee 7.7 Two types of linkage committees function for deciding the coal linkage to the core sector consumers (i) Standing Linkage Committee (Long-term)for Power & Cement (ii) Standing Linkage Committee (Short-term) for Power & Cement (iii) Standing Linkage Committee (Long-Term) for Sponge Iron Units Standing Linkage Committee(Long-term) 7.8 SLC(Long-term) considers requirement of coal of power, cement and sponge iron consumers at the planning stage and links the requirement in the long-term perspective from a rational source after examining the factors like quantity and quality required, time frame, location of the consuming plants, transport logistics, development plan for the coal mine etc. 7.9 Standing Linkage Committee (LT) for Cement & Power and Sponge Iron units are chaired by Additional Secretary, Ministry of Coal and has representatives from Ministry of Power, Ministry of Railways, Ministry of Surface Transport, Ministry of Commerce & Industry, Ministry of Steel, Planning Commission, Central Electricity Authority, Coal India Limited, CMPDIL and SCCL for deciding longterm coal linkage for power plants. . Standing Linkage Committee(Short-term)for power and cement 7.10 SLC(ST) functioning in Ministry of Coal, under the Chairmanship of Additional Secretary, Ministry of Coal, representatives from Railways, Ministry of Power, Central Electricity Authority, CIL, SCCL, Coal companies, Department of Industrial Policy & Promotion, Cement Manufacturers Association etc. SLC(ST) meetings are held on quarterly basis, to decide the coal movement plan of consumers in power and cement sectors holding long-term coal linkage. SLC(ST) also considers mid-term corrections of planned linkages and movement of coal. Although price and distribution of all grades of coal have been deregulated with effect form 1.1.2000, SLC still continues as an administrative mechanism and - 65 Ministry of Coal-Annual Report: 2006-07

provides a common platform to the coal producers, consumers as well as the transporters. 7.11 Linkages of coal to thermal power stations are allocated by Standing Linkage Committee (ST) on quarterly basis keeping in view recommendation made by the Central Electricity Authority(CEA). The CEA recommendations are based on the power generation programme, ground stock with individual power houses etc. Factors for deciding the linkages are power generation programme, availability of coal and carrying capacity of Railways as well as feasibility of movement by other modes. (A) POWER HOUSES

7.12 Off-take of coal by thermal power stations during the year 2006-07 (AprilDecember) from CIL & SCCL has been 209.105 million tonnes (Provisional including middlings) as against 207.08 million tonnes during the same period in 2005-06. (B) CEMENT PLANTS

7.13 The despatch to cement plants from CIL and SCCL during 2006-07(AprilDecember) was 10.939 million tonnes (Provisional) as against 11.20 million tonnes during the same period in 2005-06. 7.14 Linkages of coal to cement plants are also sanctioned by the Standing Linkage Committee (Short-term) on quarterly basis. Department of Industrial Policy and Promotion recommends for grant of coal linkage to cement plants on the basis of inputs they receive from the Cement Manufacturers Association. (C) STEEL PLANTS

7.15 The allocation of coking coal to steel plants was earlier made by the Coal Controller. However, after deregulation of coking coal, the supplies of coking coal are being made by the coal companies themselves on the basis of linkages established by a competent linkage committee or on the basis of their existing commitments. Production performance of coking coal washeries is given at Annexure-7E (D) SUPPLY OF COAL TO BULK CONSUMERS

7.16 Consumer-wise off-take of coal from Coal India Limited by major consuming sectors is indicated in Annexure-7F. The main consumers are the power houses, steel plants, cement industry and fertilizer industry. Almost 85% of the total production of coal is consumed by these sectors. COAL DESPATCHES AND STOCKS 7.17 All India figures of production, despatches and Vendible stocks of coal for the previous years are shown in Annexure-7G. The despatches (excluding - 66 Ministry of Coal-Annual Report: 2006-07

Meghalaya) during the year 2005-06 were of the order of 390.02 million tonnes. The overall despatches during 2006-07(April-December) have been 299.86 million tonnes (provisional). The Vendible stock as on 31.12.2006 was at a level of 29.07 million tonnes (All India). 7.18 Coal Mining is affected by seasonal factors. Pithead stocks build up during the winter months. Production drops during monsoon period. During the period June-September each year, part of the requirement of the consumers is met by drawing down stocks from the pitheads. MARKETING AND DISTRIBUTION 7.19 The Marketing Division of CIL coordinates marketing activities for all its subsidiaries. CIL has set up Regional Sales Offices and Sub-Sales Offices at selected places in the country to cater to the needs of the consuming sectors at various regions. MODE OF TRANSPORT 7.20 Important modes of transport of coal in CIL are Railways, Road, Merrygo-Round Systems, Conveyor Belts and the Rail-cum-Sea Route. The share of these modes of transport in the total movement of coal is approximately as under: (a) (b) (c) (d) Railways (Including Rail-cum-sea) Road MGR System Other (Belt Conveyor Ropeways, cum-Sea Routes etc) 56.40% 17.10% 22.80% Rail- 3.70% 100.0% Mode-wise dispatches of coal by CIL, and Other Captive Collieries excluding Meghalaya are given in Annexure-7H. (A) RAIL MOVEMENT

7.21 Railways constitute the major system of coal transportation in India as about 56% of the coal, the largest single commodity transported by the Railways. The despatch of coal by rail is governed by the Preferential Traffic Schedule of the Indian Railways, under which the programme of movement is to be sponsored by the various sponsoring authorities and accepted by the coal companies. In case of deregulated coal, Railways have allowed coal companies to sponsor the movement of coal.

- 67 Ministry of Coal-Annual Report: 2006-07

(B)

RAIL-CUM-SEA-MOVEMENT

7.22 Coal requirement of some consumers in Southern India, which include power stations and cement plants, are met by moving coal by Rail-cum-Sea Route. This is done in view of the difficulties experienced in moving coal via all Rail Routes from Bengal-Bihar and Main Line-Talcher Coalfields. The requirement of power stations of Tamil Nadu Electricity Board (TNEB) is met by Rail-cum-Sea Route. Haldia, Paradip and Vizag Ports handle the shipments. Distribution of Coal to Non -Core Sector 7.23 Non-core sector comprises linked industrial consumers, brick manufacturing units and other seasonal consumers. The non-core sector units used to be granted linkage by CIL till recently. The system of linkage to non-core sector consumers was introduced by CIL 1978 with a view to rationalise coal demand vis--vis availability. This system of coal supply to non-core consumers has since been replaced by the introduction of New Coal Sales Policy for sale of coal to non-core consumers in Jan,2003. In this Policy, the arrangement of Fuel Supply Agreement (FSA) between the coal company and non-core consumers was introduced. 7.24 In case of linked consumers, coal is being released only to those units whose working status has been verified by appropriate authority and found positive to the extent of Maximum Permissible Quantity which is the highest booking over the previous three years. New Coal Sale Policy which envisaged FSA regime with noncore sector consumers was introduced in Jan,2003 however, in view of judgment of Kolkata High Court, which disallowed distinction among non-core consumers and thus making this policy inoperational. CIL, thereafter introduced a policy of sale of coal through e-auction purely on trial basis. Such trial was conducted in BCCL in November, 04 and was confined only to rail linked consumers. This trial was successful and subsequently e-auction was extended to other coal producing companies. 7.25 The details of cumulative results of e-marketing held during April- Nov., 2006 are summarized below:Number of Bidders Number of successful Bidders Total Quantity Offered Total Quantity allocated Notified price of total allocated Quantity Floor price of total allocated Quantity Bid price of total allocated Quantity % increase over Notified price % increase over Floor price 18307 14419 31.45 million tonnes 18.39 million tonnes 1585.60 crores 1905.4 crores 2141.50 crores 35.1% 12.4%

- 68 Ministry of Coal-Annual Report: 2006-07

7.26 This scheme was however, quashed by the Apex Court. Therefore, an interim arrangement captioned E-booking was introduced to ensure supply of coal to the noncore sector, till a new scheme for distribution of coal is approved. 7.27 M/s National Cooperative Consumers Federation of India (NCCF), an apex body under Ministry of Consumer Affairs and Public Distribution, which is distributing coal to SSI and tiny units, is getting coal from CIL at a price of 20% above the notified price of a particular grade. The State Governments have also been allocated 3 million tonnes per annum for distribution to small consumer. 7.28 During the month of January 2007, E-booking was conducted in all the coal producing companies of CIL. The Provisional results of e-booking in CIL indicate that during January 2007 there was total allocation of 5.28 MT of coal as against total offer of about 5.87 MT of coal. Around fourteen thousand bidders participated in the booking and 13508 bidders emerged successful. The price under E -booking is fixed in a range of 25% to 30% above notified price as per the grade of coal. EXPORT OF COAL 7.29 Coal is under Open General Licence (OGL) list. India exports coal to the neighboring countries to meet their demand of coal. The traditional buyers of Indian coal are Nepal, Bangladesh and Bhutan. Export to Nepal and Bhutan is done in rupee exchange as per the protocol between the two countries and with Bangladesh it is done in US Dollar. Export of coal to the neighboring countries was earlier canalised through the Mineral and Metal trading Corporation, but for the last few years it has been decanalised and export was being done based on the recommendations form Royal Government of Nepal. The last contract for export of coal to Nepal for a quantity of 35000 tonnes was entered into during the year 200405. Thereafter, no contract was signed for supply of coal to Nepal. IMPORT OF COAL 7.30 As per the present Import policy, coal can be freely imported (under Open General Licence) by the consumers themselves considering their needs based on their commercial prudence. 7.31 Coking coal is being imported by Steel Authority of India Limited (SAIL) and other Steel manufacturing units mainly to bridge the gap between the requirement and indigenous availability and to improve the quality. Coast based power plants, cement plants, captive power plants, sponge iron plants, industrial consumers and coal traders are importing non-coking coal. Coke is imported mainly by Pig-Iron manufacturers and Iron & Steel sector consumers using mini-blast furnace.

- 69 Ministry of Coal-Annual Report: 2006-07

7.32 Coal

Details of import of coal and products during the last five years as under: (in million tonnes) 2001-02 2002-03 11.11 9.44 2.28 22.83 12.95 10.31 2.25 25.51 2003-04 12.99 8.69 1.89 23.57 2004-05 14.57 11.56 2.51 38.64 2005-06 17.11 19.75 2.56 39.42

Coking Coal Non-coking Coal Coke Total Import HARD COKE

7.33 The distribution of hard coke was decontrolled in 1975. The consumers are required to approach the concerned sponsoring authorities to get their demand sponsored directly to the Coal Company, which then makes arrangements for supply of this commodity to the consumers. The despatch of hard coke by CIL in the year 2005-06 was 0.32 lakh tonnes. The despatch of hard coke by CIL during the year 2006-07(April-December) has been 0.10 lakh tonnes. (Provisional). COAL CONSUMERS COUNCILS 7.34 For redressal of consumer's grievances and monitoring of complaints received from the c onsumers, one Regional Coal Consumers Council has been set up for each coal company. An Apex body viz. National Coal Consumers Council has also been set up at the Headquarters of Coal India Limited. In case the complainant does not receive a reply within a month or the complainant is not satisfied with the reply of Coal Company, he may prefer a complaint to the National Coal Consumers Council.

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

- 70 Ministry of Coal-Annual Report: 2006-07

CHAPTER - 8
ROYALTY
Legal Provision on Royalty : 8.1 Royalty is an amount payable by a lessee to the lessor for removing or consuming a mineral. Section 9(1) of the Mines and Minerals (Development & Regulation) Act, 1957 requires the holder of a mining lease or his agent, manager, employee, contractor or sublessee to pay royalty i respect of any mineral removed or n consumed from the leascd area at the rate specified in the Second Schedule of the Act. Section 9(3) of the MMDR Act empowers the Central Government to enhance or reduce the royalty rates in respect of any mineral by notification in the official Gazette with effect from such date as may be specified in the notification. This revision is done by amending the particular entry of royalty rate for the respective mineral in the Second Schedule of the Act. The proviso to Section 9(3) of the act prevents the Central government from enhancing the rate of royalty in respect of any mineral more than once during any period of three years. The Act also does not mandate that royalty on coal should be revised after every three years. Coal royalty rates during 1971-2002: 8.2 The coal royalty rates fixed in 1971 ranged from Rs.I.50 per tonne for low quality coal to Rs. 2 per tonne for high quality coal. The royalty rates on coal were subsequently revised in July 1975, February 1981, August 1991, October 1994 and August 2002. A comparative statement of coal royalty rates fixed on 13.02.1981, on 01.08.1991, 11.10.1994 and the existing royalty rates fixed on 16.08.2002 are given below: Rs. per tonne
Coal group Coal, Royalty rates w.e.f. 13.2.1981 7.00 6.50 5.50 Coal Royalty Rates w.e.f. 1.8.1991 150.00 120.00 75.00 Coal Royalty Rates w.e.f. 11.10.94 195.00 135.00 95.00 Coal royalty rates w.e.f 16.8.02 250.00 165.00 115.00

Group I Coking coal SG I, II, WG-I Group II, Coking coal WG-II, III; Non coking AB, Semi Coking Gr I, Semi Coking Gr II Group III, Coking coal WG- IV, Non coking C

- 71 Ministry of Coal-Annual Report: 2006-07

Group IV, Non coking D,E Group V, Non coking F,G Group VI, Coal Produced in Andhra Pradesh

4.50 2.50 5.00

45.00 25.00 70.00

70.00 50.00 75.00

85.00 65.00 90.00

Methodology for fixing royalty rates: 8.3 For fixing the rate of royalty on coal/lignite, the Ministry of Coal constitutes a Study Group. The Study Group interacts with and takes views of all the stakeholders, viz. the producing States, the consuming States and the consumer sectors such as power, iron and steel, cement etc. After taking into account the views of all the stakeholders and other relevant factors, the Study Group makes its recommendations to the Ministry. The Ministry, after considering the recommendations, moves a proposal for Government decision (CCEA). The consequent decision is then notified and the new rates of royalty come into effect from the date of such notification. The above process is objective, transparent and has served the purpose well. Fresh Revision of Royalty Rates: 8.4 A Committee was constituted on 02.06.2005 under the Chairmanship of Additional Secretary, Ministry of Coal to consider revision of rates of royalty on coal and lignite. The Committee submitted its report on 14.07.2006 after detailed deliberations with all stake-holders. i) The incidence of cess levied by some State Governments together with the enhanced royalty rates tends to have a cascading effect on the coal consuming sectors and this has caused disparities across the States. This issue was discussed in a meeting under the chairmanship of Secretary (Coal) held on 10.10.2006 with the representatives of the coal producing States. The views of the State Governments on the matter have been obtained. ii) 8.5 Based on the report of the Committee on royalty and the consultations held with the State Governments. A decision will be taken shortly. Royalty Paid To State Governments Royalty paid to the State Governments by coal and lignite companies is given below : State-wise and Coal company-wise Royalty paid
Name of Coal Com. Name of States W.Bengal Jharkhand Orissa Madhya Pradesh Chhattisgarh Maharashtra Uttar Pradesh Assam Total

Year

ECL

9.24

84.80

94.04

- 72 Ministry of Coal-Annual Report: 2006-07

BCCL CCL WCL


2003 SECL 2004

0.24

299.16 359.18 64.53 143.67 403.13 292.87 145.67 14.35 491.32 282.01 145.67 14.35 491.32 282.01

299.40 359.18 346.54 634.99 403.13 438.54 14.35 2590.17

MCL NCL NEC Total 9.48 743.14

40.13

501.07

Year

Name of Coal Com.

Name of States W.Bengal Jharkhand Orissa Madhya Chhat tisgarhMaharashtra Pradesh Uttar Pradesh Assam Total

ECL BCCL CCL WCL 2004 05 SECL MCL NCL NEC Total

9.11 0.20

81.34 282.22 372.33 65.38 147.12 460.43 317.13 159.92 533.47 292.95 159.92 12.71 12.71 533.47 292.95

90.45 282.42 372.33 358.33 680.59 460.43 477.05 12.71 2734.31

9.31

735.89 460.43

529.63

State-wise and Coal Company-wise Royalty paid


Name Name of States of Madhya W.Bengal Jharkhand Orissa ChhattisgarhMaharashtra Coal Com Pradesh

Year

Uttar Pradesh

Assam

Total

ECL BCCL CCL WCL 2005SECL 06 Provi MCL sional NCL NEC Total

10.28 0.20

80.44 281.27 419.70 70.00 149.37 455.08 345.10 173.83 548.89 307.42 173.83 14.98 14.98 548.89 307.42

90.72 281.47 419.70 377.42 698.26 455.08 518.93 14.98 2856.56

10.48

781.41 455.08

564.47

- 73 Ministry of Coal-Annual Report: 2006-07

Year

Name Name of States of Madhya Uttar W.Bengal JharkhandOrissa Chhattisgarh Maharashtra Assam Coal Cos Pradesh Pradesh ECL 7.86 45.61 BCCL 0.11 142.69 CCL 157.78 WCL SECL MCL NCL NEC Total 340.02 242.42 7.97 346.08 340.02 377.41 384.36 200.81 41.54 41.54 40.20 94.79 384.36 200.81

Total 53.47 142.80 157.78 241.01 479.15 340.02

2006 07 (upto Nov., 2006) PROVIS IONAL

283.96 12.37 12.37 12.37 1710.56

Royalty paid by NLC during last three years and upto 31.12.2006 Neyveli Lignite Corporation pays royalty on lignite to Tamilnadu State Govt. Details of Royalty payments are given below: Period 2003-2004 2004-2005 2005-2006 2006-2007 (upto 31.12.2006) Provisional for March2007 the period January2007 to Amount (Cr.Rs) 96.02 107.84 102.20 69.87 27.00

The following are the details of Royalty remitted by SCCL during the last 3 years. Period 2003-2004 2004-2005 2005-2006 2006-2007 (Upto November, 2006) (Rupees in Crore) Amount (Cr.Rs) 304.40 312.22 324.00 171.00

Note : The 1981 coal royalty rates are still continuing for the State of West Bengal on the ground that the Government of West Bengal is continuing to levy cesses on coal which have been withdrawn by the other State Governments. ----- x ----- x ----- x ----- 74 Ministry of Coal-Annual Report: 2006-07

CHAPTER 9
COAL CONSERVATION, UTILISATION AND RESEARCH & DEVELOPMENT
COAL CONSERVATION 9.1 Conservation of Coal enjoins maximum recovery of in-situ reserves of coal. The aspect of conservation of coal is taken into account right from the planning stage and maximum recovery is ensured during the implementation stage. 9.2 Mechanised opencast mining is presently the commonly adapted technology for extraction of thick seams at shallow depth. This is also important from the conservation point of view since the percentage recovery by this technology is about 80% to 90%. The dominance of this technology can be understood from the fact that it now contributes about 85% of total coal production. This trend is likely to continue in the near future also. Further, the thick seams, which were earlier developed by Bord And Pillar method or other methods of underground mining and had been standing on pillars for long in absence of a suitable technology for extraction, have now in many cases become extractable by opencast method of mining with HEMM equipment of suitable type in some mines of WCL, BCCL, CCL and ECL under shallow cover. 9.3 In case of underground mining, the introduction of mechanisation has resulted in increased percentage of extraction thereby leading to better conservation of coal. Replacement of the prevalent manual Bord and Pillar method of mining by semi-mechanised method of extraction (with SDL/LHD) has improved the percentage of extraction. In underground mining of thick seam where earlier the extraction percentage was very low, new methods of mining with relatively higher recovery such as Blasting Gallery and Cable Bolting have been successfully adopted. 9.4 Continuous minor technology, which has of late been introduced in India, is able to extract 60% to 70% of the coal in a panel depending upon the seam parameter as against 50% to 60% by semi-mechanised Bord and Pillar system of mining with SDL/LHDs. The rate of extraction by the continuous minor being high, it will be possible to create larger panels and thus reduce the coal lost in barrier pillars. Efforts are being made to introduce this technology in a large scale in CIL mines. 9.5 Long wall mining technology yields higher percentage of recovery (70% to 80%) with higher rate of output compared with other methods of underground mining. This method has been implemented in some mines of SECL, ECL and BCCL of Coal India Limited as well as in SCCL. However, due to difficult geo- 75 Ministry of Coal-Annual Report: 2006-07

mining conditions prevalent in India, large-scale adoption of the technology has not been possible. 9.6 With the improvement in roof support technology as mechanised bolting with resin bolts it has been possible to maintain wider gallery span and extract seams under bad roof conditions more efficiently resulting in improved conservation of coal.

SAND STOWING
9.7 Sand stowing in underground mines is yet another effective means of coal conservation, which is widely in use for extraction of coal pillars from underground coal seams lying below built-up areas, such as important surface structures, railway lines, rivers, nallahs, jores, etc. which otherwise would have resulted in locking of coal in pillars. Stowing also help in the extraction of thick seams in several lifts increasing the percentage of extraction. Presently, due to scarcity of sand various other materials like fly ash, boiler ash, crushed overburden material etc. are also been used for stowing in underground mines as a substitute for sand. RESEARCH & DEVELOPMENT 9.8 Research & Development activities funded by Ministry of Coal (MoC) under Coal S&T Grant are outlined in the table below along with the number of projects covering the different areas related to coal and lignite sector. A total of 11 projects were completed during 2005-06 and it is expected that 10 projects will be completed in 2006-07.
Status Production, Coal Environment Productivity Beneficiation & Ecology & Safety and Utilisation 25 12 8 2 Total

i) ii)

iii) iv) v)

Projects ongoing as on 1.4.2006 Projects approved from April '06 to Dec.'06 Projects completed till 31 Dec.'06 Projects ongoing as on 31 Dec.'06 Projects on final stage of completion as on 31 Dec.'06

45 2

4 25 3

2 12 1

10 -

6 47 4

- 76 Ministry of Coal-Annual Report: 2006-07

COAL S&T PROJECTS COMPLETED DURING 2005-06


Sl. No. 1. Name of the Projects Implementing Agency CMRI, ISM& ECL

2.

3.

4.

5.

6.

7. 8.

9.

10.

11.

Study of problems of spontaneous heating of coal pillars and development of techniques for its prevention, detection and control MT/109 Development of suitable subsidence prediction model for CMRI & SECL single seam workings in South Eastern Coalfields Limited area MT/122 Trial of fibre reinforced shotcrete bolt support in an ISM & BCCL underground gallery in coal subjected to high induced stresses MT/127 To study the role of blast design parameters on ground NIRM, SCCL vibration and correlation of vibration level to blasting & WCL damage to surface structures - MT/134 Optimisation of production from underground coal mines CMRI, SCCL by achieving longer pull - MT/135 & CMPDI Application of chemical treatment and centrifugation in CMPDI & CCL environment friendly disposal of coal washery tailing/ effluent slurry - CP/32 Studies on Multi Gravity Separator for treating fine coal CMPDI CP/39 Development of a process for clarification of inlet water RRL, and waste water on coal washery by using magnetic Bhubaneswar particle technology - CP/41 & CMPDI Production of clean fuel gas from coal derived gases using IICT, reactive regenerable sorbents for sulphur removal and Hyderabad & candle filters for fine particulates control - CU/43 CET Osmania Univ. Bio-processing of lignite and bioremediation of its sulphur NLC & IIT, rich wastes for development of environment friendly value Delhi added products EE/22 Air pollution resistance and filtering capacities in trees and Vinobha Bhave shrubs of surrounding opencast coal mine areas EE/26 Univ.

- 77 Ministry of Coal-Annual Report: 2006-07

CONTROL OF MINE FIRE AND SUBSIDENCE


JHARIA COALFIELD 9.9 In the Jharia coalfield, at the time of nationalisation of coking coal mines in 1972, there were reportedly 76 active mine fires spread over in about 17 sq.kms. Fire Projects were taken up from 1975 to 1988 for control of these fires at an estimated outlay of Rs.114.57 crores. 10 fires were extinguished and the remaining fires were by and large kept under control. The schemes sanctioned under Environmental Measures & Subsidence Control (EMSC) / Standing Scientific Research Committee (SSRC) Schemes of Ministry of Coal including Rehabilitation Control of Fire & Solution (RCFS) from 1996-97 to 2006-07 are given below: Year of Sanction / Approval 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Total No. of Schemes Approved 4 19 3 2 6 4 1 (Re-started) 39 No. of Schemes Completed 2 4 2 3 2 2 2 3 1 21 Year wise ongoing Schemes 4 21 19 18 15 19 17 14 17 18 18 Approved cost in Rs. Crores for each F/Year 22.31 27.49 95.49 0.66 0.00 31.33 0.00 0.00 0.00 6.20 0.00 183.48

Out of 39 schemes, 21 (twenty one) schemes have been completed and balance 18 schemes are in progress. Rs.101.47 crores sanctioned by the Ministry have been disbursed to the implementing Companies since inception of EMSC schemes during the period from April 1996 to December 2006. 9.10 Under IDA credit to the Government of India, BCCL received a loan of US $ 12.00 million for developing a long term plan for carrying out investigation and preparation of recommendation of measures for extinguishing/controlling fire and preparation of Environmental Management Plan (EMP) for Jharia Coalfield. M/s GAI-METCHEM, a joint venture of USA/Canada was appointed for preparing the FIRE FIIGHTING PROGRAMME and M/s NORWEST MINE SERVICES of Canada for preparation of the EMP. The major observations/findings are given below: - 78 Ministry of Coal-Annual Report: 2006-07

I.

FIRE FIGHTING PROGRAMME


1. Overall fires have reduced in an area from about 17 sq. km. (1986) to 9 sq.km. (1996). 2. Dhanbad Patherdih railway line (28 Km) is endangered by fires and require grouting, stabilisation, relocation preferred.

Implementation status : As per the decision taken by a committee consisting of members from Railways, State Govt. DGMS, Coal Companies etc. the railways have discontinued operation of trains on Dhanbad Patherdih Railway line. The passenger traffic has been diverted through alternative route i.e via Sindri Pardhankanta. The RCFS scheme at North Lodna, which was mainly for protection of Dhanbad-Patherdih Railway line, has been discontinued in view of the proposed decision to dismantle the railway line, dig out the fire and coal below railway line and relay the track. 3. Adra-Gomoh Railway Line requires protection by isolation trench and water curtain.

Implementation status : A RCFS scheme was sanctioned in August 2001 for protection of Adra-Gomoh railway line at Block II OCP and Phularitand Colliery at an estimated cost of Rs.5.78 Crores. The work is under progress. Disbursement up to December 2006 is Rs. 320.00 lakhs. 4. Ekra, Kari and Chatkari Jores are endangered by fires and require immediate grouting stabilisation. Implementation status : Two EMSC schemes, one at Industry Colliery (Karijore) and one at Joyrampur Colliery (Chatkari Jore) have already been completed. Further one RCFS scheme has been sanctioned in August 2001 for diversion of Chatkari Jore at Jeenagora-Bararee Colliery, which is under implementation. Disbursement up to December 2006 is Rs. 430.00 lakhs. 5. Jharia and Kirkend towns and other built up areas are endangered due to fires and require immediate isolation from fires. Shifting of townships has been recommended as better option. Implementation status : Shifting of houses from the most critical areas affected due to fire and subsidence under a demonstration scheme Shifting of people from most endangered areas of BCCL, at estimated cost of Rs.33.88 crores (revised to Rs.61.09 Crores) is under implementation. Construction of 344 BCCL houses was completed and 176 families have already shifted to newly constructed houses. The State Govt. is to take action for shifting of 3100 non-BCCL families. The site for shifting of non-BCCL families has been finalised at Belgoria Mauza and Jharia Rehabilitation & Development Authority has started construction of 900 houses. Further work order for construction of 2200 houses has been awarded to NBCC and construction work is in progress. - 79 Ministry of Coal-Annual Report: 2006-07

6. Some fires may be excavated as part of profitable opencast mining projects such as Block-III, Kusunda, Block-IV and Tisra. Efforts for land acquisition and physical possession through State Govt. are being made for augmenting production in on-going and new mining projects.

II.

PREPARATION OF ENVIRONMENTAL MANAGEMENT PLAN (EMP) FOR JHARIA COALFIELD


1. 22,300 families are required to be shifted. Implementation status : As mentioned above, action has been initiated to rehabilitate affected families. 2. 3. Predominant air pollution is from road generated dust and vehicle exhaust. Contribution of dust by traffic is about 37% of total pollution load in Jharia Coalfields. Regular ambient air monitoring is being carried out to monitor the level of air pollution. 4. The coalfield contributes about 15% of the total pollution load in the Damodar River. Implementation status : Recirculation arrangement has been adopted in all washeries of BCCL and no effluent is going into the Damodar River from BCCLs Washeries. 5. 6. Construction of small reservoirs to the North of the coalfields across the streams is recommended. Continue the existing plantation Programmes and encourage social forestry. Implementation status : Plantation work in 278 hectare of degraded land has been done at Lodna, Bhowrah, Sijua, Govindpur and Barora areas (approx 6.95 lakhs saplings have been planted). The work has been completed and completion report is awaited. Plantation is started in 125 Ha in this year.

Subsidence Problem in Raniganj Coalfield 9.11 In Raniganj Coalfields, good quality non-coking coal occurring in thick seams at shallow depth was mined indiscriminately with very small size pillars. In old days, when the surface was not densely populated, the operators had extracted as much coal as possible. With the growing industrial importance of Asansol, various townships have come up during the last century and further growth is going on, even though, some of the areas fall among those declared unsafe by DGMS. - 80 Ministry of Coal-Annual Report: 2006-07

9.12 Various Committees were formed on subsidence to identify unstable areas and to suggest remedial measures. Apex Monitoring Committee with Sri H.B. Ghosh, Ex. DGMS and retired CMD, CMPDI, as Chairman and representatives of Govt. of West Bengal, DGMS, CMPDI, ECL, CMRI and local representatives etc. was constituted to go into the problem of subsidence of Raniganj coalfield. In June 1992, it identified 49 unstable locations and again in September 1995, 21 more locations were declared unsafe. DGMS thereafter indicated that there were 171 unstable locations. A High level Committee with Secretary (Coal) as Chairman and representatives of Central and State Govts, DGMS, Planning Commission, ECL, BCCL & CMPDI members was constituted on 19.12.96 to look into the problem of subsidence and fire in Raniganj & Jharia coalfields. The Committee suggested that a Master Plan be prepared to tackle the problem of subsidence and fire. On suggestion of High Level Committee, CMPDI was entrusted with the job of preparing a Master Plan for Raniganj Coalfields. The report was submitted in February 99, which identified the followings: (i) 59 locations for stabilisation (ii) 80 locations for rehabilitation have been further categorized as priority 1 and priority 2. (iii) 7 Locations consisting of Railway line and road have been considered for diversion, and (iv) 7 fire areas have been considered for bio-reclamation. An action plan for Shifting and Rehabilitation of people from unsafe areas, dealing with fires and stabilising unstable areas in the command area of ECL has been drawn up. A monitoring Committee under the Chairmanship of Secretary (Coal), along with representatives from State Govt., CIL, ECL and related Ministries / Departments of Central Govt. h been constituted. As per decision taken in the 1st as meeting of monitoring committee on 11.11.2003 the Master Plan for Control of Fires, Subsidence and Rehabilitation has been updated by CMPDI. It identified the following: ECL (i) 43 locations for stabilisation. (ii) 92 locations for rehabilitation. (iii) 7 locations consisting of Railway line and road have been considered for diversion, and (iv) 8 fire areas have been considered for bio-reclamation. BCCL (i) 121 locations for Stabilisation. (ii) 532 locations for Rehabilitation. (iii) 66 locations for Fire control. - 81 Ministry of Coal-Annual Report: 2006-07

HIGH LEVEL COMMITTEE


9.13 A High level Committee was constituted with Secretary (Coal) as Chairman to examine the problem of subsidence and fire in Raniganj and Jharia Coalfields and to suggest mitigative measures. The Committee submitted its report in January 1998, and the recommendations were accepted by the Govt. of India. The implementation status of the recommendations is given below:

Recommendations of High Level Committee


Recommendation No. I Whenever possible settlements of all unstable areas should be shifted to noncoal bearing zones. For this purpose, satellite townships are the best long-term solution against subsidence hazards in the coalfields. Implementation Status BCCL is constructing new colonies on non-coal bearing land and process of shifting its employees is going on. The number of houses in townships over noncoal bearing areas, where employees are being shifted is around 14442. In ECL, a Scheme was prepared by CMPDI, for rehabilitation of four unstable locations at Samdih, Bangalpara (Refugee basti), Kenda and Harispur village. The scheme has been approved by Govt. of India under EMSC scheme of Ministry of Coal in May 1997 with a capital of Rs.32.52 crores. The following steps have been taken for implementation of the Scheme: (i) Constitution of Core Committee consisting of CMD, ECL, District Magistrate, Bardhaman and Director, Commerce & Industries Department, Govt. of West Bengal. Constitution of Core Group consisting following: 1. 2. 3. 4. 5. Addl. District Magistrate, Asansol, Regional Director, CMPDI, RI-I, Asansol, Chief General Manager (Finance), ECL, Sanctoria, General Manager (Surface Construction), ECL, Sanctoria General Manager, JK Ropeways, ECL.

(ii)

As per the finalised schedule of activities, the Core Group held a series of meetings involving BDO, Sabhadhipatis and Gram Panchayet Pradhans in order to form the representative village committee for each location to negotiate. There have been numerous difficulties due to various reasons to sort out this problem. Such Committees have been constituted at all four locations. Rehabilitation of these four locations is considered to be a stepping stone before a mass rehabilitation is contemplated which would require satellite townships.

- 82 Ministry of Coal-Annual Report: 2006-07

Recommendation No. II There should be total ban on any new construction over declared unsafe areas in the coalfields. Government of Jharkhand should also enact suitable legislation inline with the one already existing in West Bengal preventing construction over unsafe areas. Implementation status BCCL has put a total ban of construction of any new houses/colony/quarter over unsafe areas. Mining Area Development Authority (MADA), constituted by Govt. of Bihar, issued notification dated 30.6.97 banning any new construction over critically endangered areas in BCCL. BCCL has written letters to Jharkhand Govt. to take necessary steps for the enactment of a suitable legislation banning new construction over declared unsafe areas in the coalfield. It is learnt that the enactment of the legislation is in process by Jharkhand State Govt. In ECL the suitable legislations as contemplated by the High Level Committee already exists in the State of West Bengal Restriction on construction on Unsafe Area Act, 1979. Recommendation No. III For tackling the problems of fire and subsidence both in JCF and RCF, the participation and assistance from State Government and local administration is essential. Any enforcing agency entrusted with the responsibility of carrying out mitigating measures against fire and subsidence in RCF and JCF should be adequately represented by the above authorities. Implementation status Jharia & Raniganj Action Plan A High Level Committee has been constituted by the State of Jharkhand vide notification dated 2.8.2001 which is chaired by Minister of Mines and Geology. Govt. of Jharkhand and includes representatives from other State Govt. officials and also from DGMS, BCCL & CMPDI. Since, then a series of meetings have been held to sort out the different problems related to shifting of people from the affected areas. A fresh survey of the affected areas was done in November-December 2001 for identification of exact number of persons living in the affected areas An Action Plan has been prepared by RI-II, CMPDI in July'03, which envisages shifting of 65,300 houses consisting of houses belonging to BCCL employees, NonBCCL encroachers and private authorised houses from unstable/endangered areas of BCCL. The total duration of shifting was planned to be 20 years in 4 phases of 5 years each. In ECL a Core Committee has been constituted consisting of CMD, ECL, District Magistrate, Burdwan and Director, Commerce industries Department, Govt. of West Bengal. In addition to the said committee, a core group has also been constituted - 83 Ministry of Coal-Annual Report: 2006-07

consisting of representatives of ECL, Regional Institute-I of CMPDI, Asansol and local administration for effectively implementation. It was decided in a meeting with Secretary (Coal) in February'06 to reduce the time frame of implementation of Master Plans for BCCL and ECL to 10 years. Accordingly, the Master Plan was revised in July '06 for BCCL and August '06 for ECL considering the following: a) Time frame of implementation for different activities under Master Plan will be 10 years.

b) All the sites, which were proposed for stabilisation have been considered for rehabilitation to comply with the suggestions of the committee constituted by DGMS. Both updated Master Plans have been approved by respective Company Boards as well as Board of Directors of CIL and have been sent to concerned State Governments of Jharkhand and West Bengal for their comments.

Summary of Physical and Financial Projections of BCCL (As per updated Master Plan)
1. Projection - Physical Particulars Pre Implementation (1st & 2 nd Yr.) A. Dealing with fire i) No. of fire project to be implemented Phase - I Phase - II (3rd to 7 th (8th to 12 Yr.) Yr.) 28* 17 Total

45*

i) No. of sites to be 300 Rehabilitated ii) No. of houses to be Rehabilitated a) BCCL 12462 12538 25000 b) Private 16671 12773 29444 c) Encroachers 16166 7681 23847 d) Others 496 372 868 Total : 45795 33364 79159 2. Projection - Financial (Rs. in Crores) Particulars Pre Phase - I Phase - II Total Implementation (3rd to 7 th (8th to 12 (1st & 2 nd Yr.) Yr.) Yr.) A. Dealing with fire 4.75 1014.55 1133.21 2152.51

B. Rehabilitation 295 595

- 84 Ministry of Coal-Annual Report: 2006-07

B. Rehabilitation a) BCCL Houses 30.40 414.76 485.93 931.09 b) Non-BCCL Houses 112.91 1769.96 1371.99 3254.85 Total : 143.31 2184.72 1857.92 4185.94 C. Diversion of Rail & 20.00 20.00 Road (Advance Action) Grand Total (A+B+C) : 168.06 3199.27 2991.13 6358.45 * Including fire ongoing EMSC / RCFS Scheme one maintenance Project

Summary of Physical and Financial Projections of ECL (As per updated master Plan)
SL PARTICULARS No. A. Rehabilitation of people from unstable locations 1. No. of sites proposed to be Rehabilitated including on-going schemes 2. No. of houses to be rehabilitated 3. Phase wise no. of houses proposed to be rehabilitated Phase - I (including on-going schemes) Phase - II Total : 4. Land required for rehabilitation (in hectare) 5. Estimated capital required (Rs. in Crore) Phase - I (including on-going schemes) Phase - II Total : B. Diversion of Rail / Road etc. 6. No. of locations 7. Estimated capital required (Rs. in Crore) C. Dealing with surface fire 8. Total nos. of surface fire areas identified 9. Estimated capital required (Rs. in Crore) 10. Grand Total: (Estimated capital required Rs. in Crores) Recommendation No. IV The mitigation measures against subsidence and fire hazards are very costly options and fruitful implementation of these measures can only be possible through separate executing agency with separate funding. Formation of such - 85 Ministry of Coal-Annual Report: 2006-07

MASTER PLAN' 06

139 33196 18136 15060 33196 896.29 1231.96 1024.86 2256.82 7 7.72 7 35.88 2300.42

agencies responsible for formulating schemes, their implementation and management of funds should be finalised at the earliest. A broad outline of executing agencies has been evolved in consultation with the concerned State Governments and the Govt. Companies. Implementation status BCCL has constituted one Executing Committee for rehabilitation of its employees with members from Director General Mines Safety, CMPDI and Central Mining Research Institute for formulation and implementation of schemes for mitigation measures against fire and subsidence. As per the demonstration scheme BCCL has taken up construction of 344 houses for BCCL employees, which have already been completed. 176 families have already been shifted to these houses and further shifting is in progress. For non-BCCL people several meetings were held with the State Govt. for implementation of construction of 3100 houses for non-BCCL families and the shifting of the non-BCCL families thereof. Proposed site for shifting of non-BCCL people has been finalised by the State Govt. at Belgoria Mauza and Jharia Rehabilitation & Development Authority has started construction of 900 houses. Further work order for construction of 2200 houses has been awarded to NBCC and construction work is in progress. The State Govt. has initiated actions to constitute a Committee/Agency for construction of houses for shifting of non-BCCL people. The work of demographic survey for non-BCCL houses has been initiated by the State Govt. Survey teams have been formed and some funds for demographic survey has been given to State Govt. The State Govt. has taken action for forming another agency for looking after the construction of houses and rehabilitation of non-BCCL people. The byelaws have been formulated by the district authorities and it has been approved by the State Govt. ECL has constituted a Core Committee and a Core Group for implementation of a rehabilitation scheme. Formulation of schemes and their regular monitoring for mitigation against subsidence and fire by sand filling and afforestation in the fire area is being done by CMPDI for which sufficient funds have been allocated. Recommendation No. V The innovative hydro-pneumatic stowing technology currently being used at some locations in RCF has been found to be a very slow process. High pressure slurry pumping technology for underground void filling should be tried at some locations in BCCL for stabilising inaccessible unstable underground workings. Implementation status An R&D scheme for High Capacity Sand Flushing at Madhuband Colliery in BCCL has been sanctioned by Coal India Limited to establish the technology - 86 Ministry of Coal-Annual Report: 2006-07

of high pressure sand stowing at Madhuband Colliery, which has been established. Further trials are being conducted for research in the other parameters of high capacity sand flushing. Besides this, another scheme for High Concentration Fly Ash Slurry Stowing has been sanctioned by CIL for undertaking research for establishing this new technology of high concentration fly ash stowing in the mines of BCCL. Work order has been placed in December 2004 for taking up the scheme. In ECL, after the laboratory trials at IIT, Kharagpur, CMPDI has prepared a trial report on stabilisation of old abandoned underground voids by slurry pumping technology. This report is under examination at ECL, Headquarters. Recommendation No. VI Intensive stabilisation work of unstable areas in locations like Raniganj town, from where population cannot be shifted, should be carried out and persons affected in the high risk but low-density areas may be relocated in a phased manner. Implementation status Stabilisation work at the following sites of ECL has been completed. 1. 2. 3. 4. 5. 6. 7. Borachak, (EMSC-02) Fatehpur, Phase-I&II (EMSC-01) Haripur, Phase-I (EMSC-26) Arun Talkies (under CCDA assistance) Kumar Bazar (under CCDA assistance) Porarbandh (EMSC-17) Bhutdoba (EMSC-19)

Stabilisation works at following sites of ECL are in progress: 1. 2. Fatepur Haripur Phase III (EMSC 01) Phase II (EMSC 26). Unspent money of Phase I will be utilised for additional quantity of sand filling. EMSC 15 EMSC 16 EMSC 18 EMSC 29

3. 4. 5. 6.

Palasban Gowalabasti Pottary Sanctoria

Schemes are being implemented as per the priorities in the Master Plan for Raniganj Coalfields.

- 87 Ministry of Coal-Annual Report: 2006-07

Recommendation No. VII The mitigation measures against subsidence and fire hazards are very costly options arranging fund for the purpose of stabilisation of the subsidence prone areas and settlement of affected people, the money could be made available either through planned expenditure may be approved by Planning Commission or unplanned expenditure from Coal Conservation and Development Act Fund after making suitable enhancement. Implementation Status The Central Government has already sanctioned Rs.33.88 crores which has been revised to Rs.61.09 crores as a Demonstration Scheme for rehabilitation of 4600 houses, out of which 1500 houses are to be occupied by BCCL employees and 3100 houses are to be occupied by non-BCCL persons/encroachers who are situated in most endangered areas. For 8 schemes for fire and subsidence control, an amount of Rs.16.18 crores has been sanctioned by Central Government out of which 4 schemes have been completed. Expenditure of about Rs.1.70 crores has already been incurred in the completed four schemes. Another scheme for stabilisation of the seam below an area of Jharia town commonly called Bata More has been completed at an expenditure of Rs.26.52 lakhs in Dec 1999 by Central Mine Research Institute under CSIR. Further, 4 new schemes for protection of railway lines and stabilisation of Chatkari Jore have been sanctioned under RCFS scheme at an estimated outlay of Rs.25.60 crores which are under implementation. Out of these 4 schemes, two schemes related to protection of Dhanbad-Patherdih railway line has been discontinued and one of them is under modification in view of the proposed decision for dismantling of the railway line. In ECL, funds for Arun Talkies and Kumar Bazar were provided from CCDAC funds. For other sites, funds have been provided by Department of Coal under EMSC Schemes. Budget head has been created by the Planning Commission for the purpose. Recommendation No. VIII Considering the urgency one scheme each by ECL and BCCL for shifting of the population from the unsafe areas may be taken up without waiting for the positioning of the institutional arrangement from planned funds available with the Ministry of Coal. Implementation Status One demonstration scheme for BCCL has been approved by Government at an estimated cost of Rs.33.88 crores. The scheme has now been revised to Rs.61.09 crores. Expenditure incurred is Rs.11.60 crores till Nov'06. - 88 Ministry of Coal-Annual Report: 2006-07

One such scheme for ECL was prepared by CMPDI for rehabilitation of four unstable villages, namely Samdih, Refugee Basti, Kenda and Harispur village. This scheme was approved by Government of India, Ministry of Coal, at a total cost of Rs. 32.52 crores in May 1998. Due to indifferent attitude of the villagers and lack of initiative on the part of State Government no material progress could be achieved till date. Expenditure incurred is Rs.50.42 lakhs till Nov'06. Recommendation No. IX The Interim Report submitted by BCCL and ECL jointly with State Authorities on the fire and subsidence prone areas including likely affected population and financial implications should be kept in view while drawing up priority wise schemes for immediate and effective way to deal with the problems. Implementation Status The new schemes/projects, which are being sanctioned are prepared keeping in view the Interim Report and the Master Plan prepared by CMPDI based on the High Level Committee report.

9.14 Schemes under the Environmental Management Measures and Subsidence Control"
8 schemes for fire and subsidence control with a capital outlay of Rs.16.18 crores has been sanctioned by Ministry of Coal. Out of these 8 schemes, 4 schemes for stabilisation have been completed the other 4 schemes are under implementation. (a) The Details of the Schemes are as follows: Sanction Cost Cum. Expn. Up to 30.11.06 (Rs in Lakhs) Status

Sl. Name of the Scheme No. A 1

Stabilisation Schemes
Stabilisation below Jharia Water Board Tank at East Bhagatdih Colliery Stabilisation below Chatkari Jore at Joyrampur Colliery Stabilisation of Kari Jore at Kusunda/Industry Boundary Stabilisation below Kusunda Yard at Khas Kusunda 88.695 81.70 Completed

2 3 4

47.460 5.430 49.630

35.80 Completed 5.43 Completed 49.63 Completed

- 89 Ministry of Coal-Annual Report: 2006-07

B
5

Fire Control Schemes


Dealing with fire at Alkusa Colliery 368.390 255.10 Completed in June 2004. Project restarted and completion time extended up to May'07 337.00 Under revision 333.72 Completed 130.00 Under implementation 1228.38

Dealing with fire at Rajapur Colliery 7 Dealing with fire at S. Lodna Colliery 8 Dealing with fire at Industry Colliery TOTAL

471.870 333.720 253.300 1618.495

Further, 4 new schemes for protection of railway lines and diversion of Chatkari Jore have been sanctioned under RCFS Schemes through Ministry of Coal at an estimates outlay of Rs.25.60 crores. These schemes are under implementation. The details of the schemes are as follows: (Rs. in Lakhs) Sl. Project Sanction Disburseme Status Approva No Cost nt up to l Date Dec'06
1 Scheme for dealing with fire for protection of Dhanbad-Patherdih Railway line at Lodna-Bagdigi Colliery (RCFS-01) Scheme for dealing with fire for protection of AdraGomoh railway line at Block II Phularitand Colliery (RCFS-02) Scheme of dealing with fire for protection of Chatkari Jore at Jeenagora Bararee Colliery (RCFS-03) Aug 2001 635.23 144.00 Scheme is under revision.

Aug 2001

578.41

320.00

-do-

Aug 2001

769.82

430.00 Diversion of Chatkari jore affected due to land dispute. Matter is in Court.

- 90 Ministry of Coal-Annual Report: 2006-07

Scheme for dealing with fire for protection of Dhanbad-Patherdih railway line at Bararee Colliery

Aug 2001

577.27

130.00 BCCL Board approved the closer report of the scheme on 27.08.05. Scheme Completed.

TOTAL

2560.73

1024.00

For reclamation of abandoned coal mines in ECL, 854.27 Hectare degraded area of OB dumps, opencast voids and fire areas have been completed by social forestry division of Govt. of West Bengal and Jharkhand out of targeted area of 891 Hectare.

(b)

Subsidence Control
The details of the completed schemes are given below: (Rs. in crores) Remarks Approved

Sl. No
1

EMSC No.
EMSC- 5

Name of the Scheme

Cost
Generation of data and identification of subsidence prone area in ECL Technological measures for control of subsidence where feasible in the leasehold of ECL Generation of data and identification of subsidence prone area in BCCL Technological measures for control of subsidence where feasible in the leasehold of BCCL Stabilisation below Kusunda Yard at Khas Kusunda Stabilisation of Kari Jore at Kusunda/Industry Boundary Stabilisation below Chatkari Jore at Joyrampur Colloiery Stabilisation below Jharia Water Board Tank at East Bhagatdih Colliery Stabilisation of inaccessible water logged voids beneath Barachak Village 0.26 These schemes were completed in 1998-99 Completed

EMSC- 6

0.47

EMSC- 7

0.26

Completed

MESC- 8

0.48

Completed

EMSC-10

0.50

This scheme was completed in June 2001 This scheme was completed in June 1999 This scheme was completed in July 2001 This scheme was completed in Dec 1999 Scheme completed in Nov 2001 with total expenditure of Rs 4.36 crores

EMSC- 11

0.05

EMSC -12

0.47

EMSC- 14

0.89

EMSC- 2

4.69

- 91 Ministry of Coal-Annual Report: 2006-07

Sl. No
10

EMSC No.
EMSC- 26

Name of the Scheme

Approved Cost
1.88

Remarks
crores Phase I completed with total expenditure of Rs 1.2428 crores. Part of the village, not covered in Phase I is yet to be stabilised. Stabilisation of this part will be taken up with the unspent money of Rs 0.68 crores Phase-I completed in Feb.'04 with total expenditure of Rs.0.85 crores. Part of the village not covered in Phase-I is yet to be stabilised. Stabilisation of this part is being done with the unspent money of Rs.1.03 crores. Completed Completed

Stabilisation below Haripur Village Phase - II

11

EMSC-16

Stabilisation below Gowalabasti (Phase-I)

1.88

12 13

EMSC-17 EMSC-19

Stabilisation of inaccessible void beneath Porbandh Stabilisation of inaccessible voids beneath Bhotdoba

1.88 1.88

Ongoing Schemes (i) P&M required for hydro-pneumatic stowing at all the approved sites is available. Stowing is continuing at Gowala Basti, Pottary, Haripur, Palasban and Sanctoria sites. Due to underground workings being on fire, hydro-pneumatic stowing at Sanctoria village has been replaced with hydraulic stowing only and sand filling is in progress. Hydro-pneumatic stowing at Borachak, Porarbandh and Bhutdoba has been completed. Haripur (Phase-I) scheme has also been completed. There is still a part of Haripur village on unstable ground, which was not covered for stabilisation under phase-I scheme. Phase-I scheme has been completed with Rs.1.20 crores expenditure and there is still Rs.0.68 crores unspent money. Additional 15,000 m3 of sand will be stowed with this Rs.0.68 crores of unspent money. The stowing is in progress. - 92 Ministry of Coal-Annual Report: 2006-07

(ii)

(iii) (iv)

(v)

Fatehpur stabilisation scheme was approved for 90,000 m3 of sand filling. The work was taken up in phase-I and phase-II for 20,000 m3 of sand stowing in each phase. Phase-II was completed in March 2002. Total sand stowing 3 done under Phase-I & Phase-II is 40,876 m . After the completion of PhaseII, CMPDI, RI-I was requested to assess the further requirement of sand to be filled to complete the stabilisation of Fatehpur village. As per the present assessment of CMPDI, total quantity of sand to be filled for stabilisation of Fatehpur village is 60,000 m3 . Necessary steps are being taken for further sand filling of 20,000 m3 below Fatehpur village under Phase-III.
3 Gowalabasti Phase-I scheme for 20,000 m sand filling has been completed. There is still a part of Gowalabasti village on unstable ground, which was not covered for stabilisation under Phase-I scheme. Phase-I scheme was completed with Rs.0.85 crores expenditure and there is still Rs.1.03 crores unspent money. Additional 26,000 m3 of sand will be stowed with this unspent money. The stowing is in progress.

(vi)

(vii)
Sl. No.

Sand stowing done till November, 2006 as per schemes are as under:
Localities Scheme
3 Sand Stowing Sand stowing done in m 3 in m as per as per scheme till Nov.06 scheme

1 2 3 4 5 6 7 8 9

Fatepur Borachak Palasban Ph-I Gowalabasti Ph-I &II Porarbandh Ph-I Pottary Ph-I Bhutdoba PH-I Haripur Ph-I & II Sanctoria Ph-I

EMSC-01 EMSC-02 EMSC-15 EMSC-16 EMSC-17 EMSC-18 EMSC-19 EMSC-26 EMSC-29

51950 45000 (Rev) 7086 34780 20000 30244 20000 30154 20000

49878 43408 4250 47022 8220 31155 3526 33662 28576

(C)

Social Mitigation Projects


One Social Mitigation Project in BCCL has been sanctioned for rehabilitating the people living in the endangered areas. The details of the scheme is as follows:

Sl.No. 1

Sanctioned Capital (Rs. In Crores) Shifting of people from most 33.88 (The scheme has now been endangered area of BCCL revised for Rs. 61.09 Crores)

Name of the Scheme

- 93 Ministry of Coal-Annual Report: 2006-07

Progress in BCCL
This scheme envisages 4600 houses (1500 houses for BCCL employees and 3100 houses for non-BCCL persons). Work order for construction of 344 houses for BCCL employees were placed by BCCL in 1999. 344 houses have been constructed and 176 families have shifted. Further shifting is in progress. The 3100 non-BCCL unauthorised houses identified in the most endangered area are situated in 32 sites in 9 areas of BCCL out of 151 sites. For the implementation of the non-BCCL part of the scheme, State Govt. was to constitute a Sub-Authority and enact a suitable legislation banning new construction over unsafe coal bearing areas. But both jobs have not been done as yet, but action has been taken in this respect. Site for rehabilitation of non-BCCL people has been finalised at Belgoria Mauza on non-coal bearing area. The proposal to enact a legislation banning construction of houses in coal bearing areas has been prepared in December 2002 and was understood to be under process. It is learnt that this was later on referred to a Selected Committee of the Jharkhand Vidhan Sabha for further finalisation/ approval. It was decided by the State Govt. in December 2003 that until the SubAuthority is finalised, the State Govt. be entrusted the work of construction of houses for non-BCCL people to the District Rural Development Authority (DRDA), Dhanbad as envisaged in the Action Plan including those of Demonstration Scheme for shifting of people from most endangered areas of BCCL. The DRDA has already started functioning in this respect. In accordance with the decision taken in the meeting on 1.12.2003 with Commissioner, North Chotanagpur, BCCL had deputed 6 of its employees (1 executive and 3 supervisory staff and 2 computer operators) to DRDA in February 2004. BCCL also agreed to enhance the requirement of manpower as and when required by the District Administration. Fund for starting construction work is also available. A number of meetings were deliberated with the officials of State Govt. of Jharkhand to expedite the various activities relating to the implementation of rehabilitation of people from most endangered areas of BCCL. An Action Plan for Dealing with Fires, Subsidence and Shifting of people from unstable areas has been prepared by CMPDI, RI-II in July 2003 and the same has been sent to Department of Coal for consideration. The Action Plan is for duration of 15 to 20 years. The details are as follows:

- 94 Ministry of Coal-Annual Report: 2006-07

ACTION PLAN (August 2003) (a) Shifting and Rehabilitation of People from unsafe areas
The Action Plan envisaged shifting and rehabilitation of people from unsafe areas in 5 sites involving 65300 houses, which is to be completed in a time frame of 20 years. The estimated investment is Rs.2328.52 crores. In phase-I (1st five years) rehabilitation is to be done for 19984 houses (BCCL-10134, Pvt. Houses 3714 and Encroacher 6136 houses) with people being shifted from 119 sites. The estimated investment during phase-I is Rs.548.45 crores. In the Action Plan (for rehabilitation) certain pre-implementation activities like Demographic survey, preparation of schemes and formation of agencies for implementation has been proposed. From the State Govt. side the enactment of a suitable legislation banning new construction over unsafe and coal bearing areas, formation of a Sub Authority and demographic survey of non-BCCL people are also proposed.

(b)

Controlling the Fire continuing in a number of mines

The Action Plan envisaged dealing/controlling fires by implementing 37 fire projects which is to be competed in time frame of 15 years. The estimated investment was Rs.1733.36 crores. For phase-I(1st five years) 17 fire projects will be taken up. The estimated investment during phase-I is Rs.733.69 crores.

(c)

Stabilisation of unstable workings

The Action Plan envisaged stabilisation of 121 unstable sites which is to be completed in time frame of 20 years. The estimated investment was Rs.343.60 Crores. For phase-I (1st five years) 35 stabilisation sites will be taken up. The estimated investment during phase-I is Rs.70.77 crores. One social mitigation scheme for ECL was prepared by CMPDI for rehabilitation of four unstable villages. The scheme was approved by Govt. of India, Department of Coal. Details of the scheme are as follows: Name of Scheme Rehabilitation of four unstable localities in ECL Sanctioned Capital Rs. 32.52 crores.

Progress in ECL
(i) The summarised present status of implementation as on 30.11.06 of the approved scheme for rehabilitation of four identified unstable locations is as follows. Action taken for implementation of scheme: Details is as follows :

(ii)

- 95 Ministry of Coal-Annual Report: 2006-07

Sl. No.
1.

Name of locality

unstable

Status as on 30.11.2006
A village committee was constituted. Videography of the affected site was done as well as taking of photograph of the head of the household completed. Demography survey, land record verification and assessment of valuation of the dwellings completed. Identity card of the head of the family is ready for issue. Proposed rehabilitation site selected. A village committee was constituted. Videography of the affected site was done as well as taking of photograph of the head of the household completed. Demography survey was completed. Land record verification and assessment of valuation of the dwellings is in progress. Issue of Identity card to the head of the family is in process. Proposed rehabilitation site selected. A village committee was constituted. Videography of the affected site was done as well as taking of photograph of the head of the household completed. Demography survey and land record verification were completed. Assessment of valuation of the dwellings completed. Identity card of the head of the family is ready for issue. Proposed rehabilitation site selection is in process. A village committee was constituted. Videography of the affected site was done as well as taking of photograph of the head of the household completed. Demography survey was completed. Land record verification and assessment of valuation of the dwellings is in progress. Villagers insist to know about the compensation package before submitting their land records. Issue of Identity card to the head of the family is in process. Proposed rehabilitation site sele cted.

Samdih village (Salanpur Area)

2.

Kenda Village (Kenda Area)

3.

Bangal Para (Pandaveswar)

4.

Harishpur village (Kajora Area)

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

- 96 Ministry of Coal-Annual Report: 2006-07

CHAPTER - 10
PERSONNEL AND INDUSTRIAL RELATIONS
MANPOWER 10.1 Human Resources Development is a key management function and occupies an important place in the Coal India Limited (CIL). CIL has formulated a well defined personnel policy which provides for promotion, training at various stages of service. 10.2 The phenomenal growth of organization from a production level of 75MT in the year 1974-75 at the time of nationalization of coal industry to a production of 343,39 MT achieved in the year 2005-06 bears testimony to this fact. 10.3 Rationalisation of manpower has been identified as a major thrust area by the Management. Effective methods such as redeployment/ transfer of employees against the vacancies created due to natural wastage, strict control on fresh recruitment and retirement through VRS was taken up. Due to the above measures, there has been large reduction of overall manpower from a level of 6.70 lakh to 4.43 lakh as mentioned below: Year as on 1st April of 1985 1995 2000 2001 2002 2003 2004 2005 2006 2006(upto Dec,06) 10.4 Total manpower deployed. 6,70,739 6,41,093 5,62,071 5,42,051 5,19,922 5,01,419 4,84,703 4,68,450 4,52,287 4,43,128

STATUS OF MANPOWER OF CIL & SUBSIDIARIES 2001-02 as on 31.3.02 1,19,723 1,08,043 74,887 75,005 2002-03 as on 31.3.03 1,14,582 1.02,414 72,401 72,501 2003-04 2004-05 2005-06 as on as on (as on 31.3.04 31.03.05 31.12.05) 1,10,132 1,05,692 1,01,474 97,110 92,268 87,146 69,799 66,871 64,200 70,515 68,938 67,378 - 97 2006-07 (as on 31.12.06) 99,800 84,499 62,476 66,052

Company

ECL BCCL CCL WCL

Ministry of Coal-Annual Report: 2006-07

SECL MCL NCL NEC CMPDI DCC CIL(H) TOTAL

93,397 22,216 17,212 3,930 3,485 676 1,348 5,19,922

91,390 21,661 17,278 3,779 3,436 671 1,306 5,01,419

89,503 21,506 17,292 3,581 3,366 653 1,246 4,84,703

87,590 21,288 17,174 3,489 3,290 647 1,203 4,68,450

85,871 20,876 16,914 3,391 3,234 647 1,156 4,52,287

84,713 20,680 16,759 3,231 3,145 649 1,124 4,43,128

10.5 As on 31.12.2006, SCCL ( a joint venture of the Union Government and the State Government of Andhra Pradesh ) has employees on its rolls, as per the following break-up: MEN-ON-ROLL AS ON 31.12.2006

S. NO.

CATEGORY

I A
1 2 3 4 5

DAILY RATED
NON-EXCAVATION CATEGORY-I CATEGORY-II CATEGORY-III CATEGORY-IV CATEGORY-V 5664 8477 6191 5710 6227 8011 463 792 958 990 357 251 2505 18263 15192 2574 82625

6 CATEGORY-VI EXCAVATION B
1 2 3 4 5 6 SPECIAL GRADE GRADE-XA GRADE-XB GRADE-XC GRADE-XD GRADE-XE MONTHLY RATED EXECUTIVES NON-EXECUTIVES PIECE RATED REGULAR FILLERS BADLI FILLERS STIPEND

II
1 2

III
1 2 3

TOTAL
- 98 Ministry of Coal-Annual Report: 2006-07

10.6 The Voluntary Retirement Scheme introduced by CIL has been in operation since 1988-89. It has received good response f om the employees. The total number r of employees retired under the existing VR Scheme is given below: Year 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07(upto 31.12.06) Total No. of Employees taken VRS 1182 1661 900 1587 6232 5455 9967 1538 1905 4912 10245 11634 7854 10539 6573 5947 4192 3220 1410

10.7 The companies are trying to identify the surplus manpower in order to rationalize the strength, and meet the skill requirement. 10.8 The amount released by Ministry of Coal on account of VRS funds for ECL/BCCL and CCL during 1997-98 to 2004-05 are as under: Year Company Amount Sanctioned (Rs.Crore) Amount Spent (Rs.Crore) No of employees paid.

1997-98

ECL BCCL ECL BCCL ECL BCCL

Rs.40.00 Rs.40.00 Rs.80.00 Rs.80.00 Rs.85.00 Rs.80.00 - 99 -

Rs.25.00 Rs.50.33 Rs.82.00 Rs.68.23 Rs.91.37 Rs.67.15

1472 3327 4323 3499 4450 3253

1998-99 1999-00

Ministry of Coal-Annual Report: 2006-07

2000-01

ECL BCCL CCL ECL BCCL CCL ECL BCCL CCL ECL BCCL CCL ECL BCCL CCL

Rs.70.00 Rs.70.00 Rs.40.00 Rs.108.46 Rs.108.46 Rs.65.62 Rs.43.00 Rs.42.00 Rs.22.02 Rs.53.00 Rs.53.00 Rs.32.44 26.16 69.93 7.41

Rs.60.33 Rs.50.59 Rs.29.11 Rs.92.93 Rs.64.32 Rs.35.14 Rs.69.61 Rs.70.44 Rs.32.46 Rs.31.40 Rs.51.03 Rs.38.34 Rs.56.30 Rs.64.74 Rs.37.36

2653 2270 1283 3604 2533 1383 2512 2579 1082 938 1734 1148 1407 1620 983

2001-02

2002-03

2003-04

2004-05 ( Loan)**

** For year 2004-05 funds were released as soft loan to CIL for VRS, which in preceding years were released as grant from Government. 10.9 From the year 1999-2000 the PSUs under the Ministry of Coal were delinked from release of grant in aid from National Renewal Fund and budgetary provision for VRS was sanctioned from the Annual Budget of this Ministry. During the financial year 2003-04 no fund was released by the Ministry of Coal. In the financial year 2004-05 Rs.103.50 Crore were sanctioned. However, this grant, released as soft loan, has since been returned by CIL along with interest on 18.11.05. CRITICAL AREAS : 10.10 While on the one hand the Management has been rationalizing the manpower, it has the difficult task of accommodating the new appointees who are joining the coal companies under the land losers scheme as also through the scheme of compassionate employment. 10.11 Each year the subsidiaries of CIL induct about 4000 persons through these schemes. The majority of the new appointees are untrained and unskilled, which includes widows of employees dying in harness. This has given rise to a serious mismatch between the skills required and persons available. 10.12 The problem is further aggravated due to the exit of skilled persons on superannuation/retirement. In order to deal with this problem, a scheme is being formulated under which the new appointees would be initially taken as trainees. - 100 Ministry of Coal-Annual Report: 2006-07

They would be imparted training on the ITI pattern for a period of 2/3 years. This would help in building up a sound technical pool of employees. CORPORATE HRD PLAN 10.13 A strategic HRD Plan for the period 2001-06 has been prepared by Coal India on the basis of review of HRD performance during the last five years and also keeping in view the existing global business scenario. The major thrust areas of the HRD Plan are: Quality improvement Cost reduction Faster delivery / off take Information sharing among various departments within the organizations (inter-departments and intra-departments)

10.14 The Annual Plan was worked out to integrate the efforts of HRD in all the training centers, located in different subsidiaries. The strategy was to utilize available in-house training infrastructure as well as meeting the needs with the help of existing training capabilities. TRAINING STRATEGIES 10.15 The HRD strategies focused on the following areas :i) ii) iii) To facilitate availability of skilled manpower through planned development of existing employees. To conduct basic and refresher training for operators and maintenance personnel with reference to HEMM equipment, used in Coal Production. To prepare employees for acquiring statutory qualification through intensive coaching as well as grooming eligible employees for departmental examination aimed at career growth. To conduct general development programmes for workmen and supervisors for integrating them with the state-of-art Technology as well as enterprise. To train Management Trainees, through a standard scheme. To develop senior executives from M to M-3 level through centralized in-1 house programmes organised at IICM, a Apex training Institute at Ranchi. To develop senior executives through nomination to courses organized by reputed institutions and professional bodies in India and facilitate interorganizational exposure to assimilate development in the areas of technology and management science. To develop employees through training opportunities abroad available from foreign Government, manufactures of specialized equipment and international seminars and courses and to help & enhance managerial and technical competence of employees working in strategic positions. - 101 Ministry of Coal-Annual Report: 2006-07

iv) v) vi) vii)

viii)

10.16 The number of employees trained during 2006-07 (April 2006- December, 2006) in Coal India Limited is given below: CATEGORY Abroad Executives Supervisors Workers TOTAL 33 4 7 44 EMPLOYEES TRAINED Outside the In-house company 1496 4608 144 4898 94 10030 1734 19536

Total 6137 5046 10131 21314

10.17 The number of employees to be trained during 2006-07 (Jan, 2007 to Mar, 2007) in Coal India Limited is given below:- (Provisional) CATEGORY Abroad Executives Supervisors Workers TOTAL 8 2 0 10 EMPLOYEES TO BE TRAINED Outside the In-house company 500 1540 144 1632 94 3350 738 6522

Total 2048 1778 3444 7270

10.18 TRAINING PROGRAMME IN SCCL I. Statutory training programme in SCCL i) Statutory training in Mines Vocational Training Centers (MVTCs) as per VTC Rules,1966. NO. OF PERSONS TRAINED DURING 2006-07 Basic Training for Workmen 523 Refresher training to Supervisors and 15,743 Workmen Change of Job training 5,394 Special. Training for attending the Statutory Examinations 876 Others: Contract labour, Support 5,776 personnel etc - 102 Ministry of Coal-Annual Report: 2006-07

DETAILS OF TRAINING

ii) Training to Opencast Personnel viz. executives, supervisors , Operators and Technicians is being given at Technical Training Center (TTC) Manuguru and the details of programmes conducted during 2004-05 are given below:-

Sl. No 1

Details of Training

No. of Persons trained

Refresher Training (Statutory) i) EP Operator Trainees ii) EP Electrician iii) EP Fitter Total 92 44 44 180 78 01 14 58 07 03 05 43 209 09 36 28 462

Fresher Training: i) E.P. Operator trainee. ii) Crane Operator iii) E.P. Electricians iv) E.P. Fitters v) E.P. Welder vi) Shovel Operator vii) Drill Operator viii) Others Total Orientation Training 10 CG MT Shovel Operator Change of Job training i) Dozer Operator ii) Hydraulic Operator TOTAL

3 4

II. i)

NON-STATUTORY TRAINING PROGRAMMES: Under ground mechanization training institute (UMTI), Ramagundam:

Following are the details of employees strained on various underground mine machinery during 2006-07 ( Upto Dec., 06) Sl. No. 1 2 3 4 Details of equipment 625 SDL 811 LHD 611 SDL Converted AM 50 RH Total - 103 Ministry of Coal-Annual Report: 2006-07

Executive 2 2

Non Executive 44 120 22 28 214

ii) Number of executives and non-executives sponsored for the In-house Programmes within India and foreign training programmes during 2006-07(upto Dec, 06) is given below: SL.NO NAME OF THE PROGRAMME IN-HOUSE PROGRAMMES a) Executives b) non-executives NO. OF PROGRAMME S 45 03 147 76 14 01 NO. OF PERSONS ATTENDED 1022 76 604 728 37 05

II

Within India
a) Executives b) Non-Executives

III

Foreign Training
a) Executives b) Non executives

iii) 564 employees (112 executives, 452 trade men and EP operators) were trained by equipment suppliers on various HEMM equipment in eight programmes. RESERVATION POLICY COAL INDIA LIMITED 10.19 The reservation policy is being maintained on recruitment and promotion of Scheduled Castes and Scheduled Tribes respectively as per Presidential Directives. Direct Recruitment For Group-A & B SC posts All India basis by means of open Basis competitive test (written) All India Basis otherwise than by not conducting written competitive test 15% Promotion For groups A,B,C,D All India

ST 7%

OBC 27%

SC 15%

ST 7 %

16? %

7 %

- 104 Ministry of Coal-Annual Report: 2006-07

10.20 Apart from the above there is a directive on reservation on recruitment on C&D Group of SC/ST where state-wise reservation is being maintained. Subsidiarywise / State-wise reservation % - age is appended below:State Jharkhand Jharkhand Jharkhand West Bengal West Bengal West Bengal Orissa Madhya Pradesh Chattisgarh Maharastra Assam Company BCCL CCL CMPDIL ECL DCC CIL/Kolkata MCL NCL SECL WCL NEC % age of SC 15 15 15 22 22 22 15 14 14 07 06 % age of ST 09 09 09 06 06 06 23 23 23 09 11 % age of OBC 25 26 26 22 22 22 12 13 13 27 27

PERSONNEL AND INDUSTRIAL RELATIONS WAGES IN COAL SECTOR 10.21. Since inception, wage structure and other conditions of service including fringe benefits, welfare measures etc. of the non-executive cadre employees in the Coal Industry have been settled by Bipartite Wage Negotiations by a committee constituted by Govt. of India. The committee is functioning in the name of Joint Bipartite Committee for the Coal Industry consisting of representatives of 5 Central Trade Unions and the management of Coal Companies i.e. CIL & its subsidiary companies, Singareni Collieries Co. Ltd., Tata Iron and Steel Company and Indian Iron & Steel Company from NCWA-I to NCWA-VI. However, in NCWA-VII TISCO, IISCO and other Private Coal Companies declined to participate. Seven National Coal Wage Agreements have so far been signed as detailed in the table below: National Coal Signed on Period of Agreement Wage Agreement From To (NCWA) NCWA-I 11.12.1974 1.1.1975 31.12.1978 NCWA-II 11.08.1979 1.1.1979 31.12.1982 Duration period of Agreement 4 Years 4 Years

- 105 Ministry of Coal-Annual Report: 2006-07

NCWA-III NCWA-IV NCWA-V NCWA-VI NCWA-VII

11.11.1983 27.07.1989 19.01.1996 23.12.2000 15.07.2005

1.1.1983 1.1.1987 1.7.1991 1.7.1996 1.7.2001

31.12.1986 30.06.1991 30.06.1996 30.06.2001 30.06.2006

4 Years 4&1/2Years 5 Years 5 Years 5 Years

10.22 JBCCI-VII was constituted on 28.07.2004 and NCWA-VII was signed on 15.07.2005 after a series of meetings held during the period between 12.01.04 and 15.07.2005. 10.23 The Salient features of NCWA-VII are as follows: i) ii) The agreement has come into force w.e.f. 1.7.2001. Minimum WagesRevised as on 15.07.2005 Basic Pay Attendance Bonus S.D.A V.D.A Total Rs. 5550.00 Rs. 555.00 Rs. 99. 62 Rs. NIL Rs. 6204.82 Rs. 3300.00 Rs. 330.00 Rs. 59.23 Rs. 1330.00 Rs. 5019.23

Pre revised as on 30.06.2001 Basic Pay Attendance Bonus S.D.A V.D.A Total iii)

Increase in new revised Basic Pay @ 68.18% of pre-revised Basic pay. Minimum Guaranteed Benefit: 15% of Basic pay as on 30.6.2001 plus Rs. 300/- or Rs. 1185. 39 per month whichever is higher. iv) v) Neutralization of V.D.A @ 100% according to the shift of Consumer Price Index Number over 2191. Underground Allowance @ 10% of Basic Pay upto Rs. 9000/- per month and 12.5% of Basic pay of Rs. 9001/- and above w.e.f 1.7.2004 In case of Assam Coalfields UG allowance has been fixed @ 12.5% of Basic Pay upto Rs. 9000/- per month and 15% of Basic pay of Rs. 9001/- and above w.e.f 1.7.2004.

- 106 Ministry of Coal-Annual Report: 2006-07

vi)

Other Allowances Pre-revised Revised w.e.f 1.7.2001 Rs. 50.00 Rs. 60.00 Rs. 100.00 Rs.7.00 Rs.10.00 Rs. 2.90 Rs. 5.80 Rs. 15.00 120 days 100 days Rs. 40,000 Rs 30,000

Washing Allowance Washing allowance for Nursing Staff House Rent Allowance Transport Subsidy (per day) Addl. Transport Subsidy (per day) Travelling over steep gradient (per day) Where such traveling exceeds 2000mtrs. (per day) Conveyance reimbursement (per day) Accumulation of annual leave with wages Accumulation of sick leave Life cover scheme Ex-gratia in case of death/permanent total disability resulting on account of accident in course of employment. Encashment of earned leave Encashment of earned leave at the time of retirement

Rs.40.00 Rs.50.00 Rs. 75.00 Rs. 5.00 Rs. 7.00 Rs. 1.90 Rs. 3.80 Rs. 12.00 100 days 90 days Rs. 30,000 Rs 25,000

5 days per year 100 days

15 days per year 120 days

vii) Upgradation of Daily rated and Monthly rated employees who have remained in the same category/grade for a period of 7/8 years or more. viii) Employees who have remained in the same category/grade for a period of 7/8 years underground surface respectively will be upgraded in the next higher category grade. INDUSTRIAL RELATIONS: 10.24 The Industrial relation scenario in Coal India Ltd., and its subsidiary companies during the year remained cordial. Regular structured meetings have been held with the operating Trade Unions at different levels. 10.25 STRIKES AND BANDHS Table -A
2000-01 2001-02 2002-03 200304 12 2004-05 200506 5+1* 200607(upto 31.12.2006) 4+1*

No.of strikes

36

22

20

10+1*

- 107 Ministry of Coal-Annual Report: 2006-07

Mandays Lost Producti on Lost (in tonnes)

834076 1048099

748683 1700835

313925 734437

255706 414327

70172 324444+ 45 Mts.

176898 193670 +174 Mts.

127748 143423 +224.26 Mts

*IS = Industrial Strike WORKERS PARTICIPATION IN MANAGEMENT 10.26 In CIL and subsidiaries there is a well established bi-partite forum consisting of the representatives of the Management and the 5 Central Trade Unions for interaction and redressal of issues related to the wages & service conditions, employment, safety, grievances and welfare etc. related matters. The following joint bipartite fora are operating at different levels: 1. 2. 3. 4. 5. 6. JBCCI at CIL Apex Jt. Consultative Committee Safety Board/ Safety Committee Welfare Board/ Welfare Committee Joint Consultative Committees Industrial Relation Meetings (Structural meetings with union).

THE INDUSTRIAL RELATIONS IN SCCL 10.27 The Industrial Scenario in SCCL for the year 2006-07 (Up to December, 2006) has been satisfactory. However, there were 3 strikes during this period. 10.28 Election to trade unions operating in SCCL were held on 9th September, 1998, through secret ballot, under Code of Discipline in which only 13 unions have participated. The S C Workers Union (AITUC) has emerged as Recognized Union 10.29 The Management has laid down clear Industrial Relations Policy through Office Memorandum dt.05.10.1998 providing for mechanism to discuss the issues with Recognized Union at Company level and Area level and with Representative Status Union at Area level. 1. Verification of the strength of the unions functioning in the Company will be done through secret ballot once in 4 years by the appropriate authority. Only one union will be recognized at Company level. There will be one Representative union in each Area The recognition / representative status is for 4 years - 108 Ministry of Coal-Annual Report: 2006-07

2. 3. 4.

5.

The Union recognized at company level may represent and discuss any issue on behalf of the workers either at company level or Area level. The Representative Union for an Area can represent the issues pertaining exclusively to that area Any indulgence in or any encouragement of violence, intimidatory tactics, illegal strikes or violation of Code of Discipline shall render the recognized / representative Unions liable to forfeit the status of recognition. All the above measures c ontributed for reduction in number of strikes, as can be seen from the following details. Sl. No. 1 2 3 4 5 6 Year 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07(up-to Dec.2006) No .of Strikes 54 35 15 14 11 03 Man days Productio lost n Lost 13,33,051 12,54,813 16,30,798 6,47,426 1,02,942 1,21,647 91,818 57,499 2,40,403 1,10,189 5,587 9,872

6. 7.

8.

9. For the first time after 1978, August, 2000 remained strike free calendar month in the history of SCCL. Subsequently the following months remained strike free calendar months through out the Company. 2002 2003 2004 2005 2006 March, 2002, May, 2002, December, 2002. April, August, Nov.,2003 March, April, Sept., Oct., Dec.2004 January, May, July, August,2005, Dec.2005 January, May, June, July, Sept, October, December,2006

10.30 Election to the Trade Unions operating in SCCL through secret ballot were held for the 3rd time on 14.05.2003 in which the SCML Union (INTUC), which polled highest no. of votes i.e. 30,291 (39.77%) emerged as company-wide recognised Union and 04 other unions have emerged as representative status unions. 10.31 The Management of SCCL has taken up the following steps for betterment of employer employee relationship so as to continue harmonious and cordial industrial relations in SCCL. Transparency in Management is maintained.

- 109 Ministry of Coal-Annual Report: 2006-07

Letters were addressed to workers individually by C&MD on Independence Day, Republic Day, New Year Day covering future of coal industry, financial health of the Company, welfare measures etc. Improvement in further communication with workmen by way of:a) Telecasting programmes on local Siti Cable pertaining to various activities of the Company. b) Starting Communication Cells in all the Areas. c) Displaying Wall Posters on various issues in the Mines & Departments and colonies. d) Interaction with the workmen by Multi Departmental Teams. e) Visit to colonies by the Team of Officers to have first hand report about welfare measures implemented in the colonies and also to take suggestions from the workmen and their family members. f) Holding press meets regularly.

Improvement in discipline by way of:a) b) c) d) e) Maintaining strict timings. Taking disciplinary action on chronic absentees. Improvement in work norms. Controlling of pay day and over time. Regulating provision of dependant employment.

10.32 The comprehensive written Industrial Relations policy followed by the Management in dealing with unrecognized unions, after holding elections has led to disappearance of many of the small unions. By introducing several reforms harmonious Industrial Relations are achieved through systematic Co-operation between the labour and the Management, in reducing costs, increasing the production and productivity, improving quality of work and maintaining Industrial Peace and thus SCCL could overcome its financial difficulties and considerably improve its productivity and profits. ----- x ----- x ----- x -----

- 110 Ministry of Coal-Annual Report: 2006-07

CHAPTER - 11
EMPLOYEES WELFARE AND SOCIAL SECURITY SCHEMES
WELFARE 11.1 The focus of our Welfare Activities is the welfare of our employees and their families. The Coal Companies are paying greater attention to the welfare of their workers. Every effort is being made to improve the living conditions of the coal miners. In order to create a sense of belonging and involvement in work, priority is given by the management to provide housing, medical and educational facilities etc. The results of the welfare measures taken in different areas are as under: HOUSING 11.2 At the time of Nationalisation, in Coal India Ltd and its subsidiaries there were only 1,18,366 houses including sub-standard houses. The availability of these houses has increased to 4,11,934 (upto 31.12.2006). The percentage of housing satisfaction has now reached to 92.81%. The details of houses constructed (upto 31.12.2006) are given in Annexure-11A. 11.3 As on 31.12.2006 there are 47,365 quarters existing in all the areas of the Singareni Collieries Company Limited (SCCL), housing satisfaction of 59.08%. 4365 quarters are under construction. With this the housing satisfaction would be upto 64.52%. WATER SUPPLY: 11.4. Coal India Ltd. & its subsidiaries as against 2.27 Lakh population having access to potable water at the time of Nationalisation in 1973, presently 22.88 Lakh (upto 31.12.2006) population has been covered under water supply scheme. Details of population covered under Water Supply Scheme (upto 31.12.2006) are given in Annexure-11B. 11.5. SCCL has provided the following drinking water facilities to its employees and community. 2006-07 Works in Progress (April,06 to Dec.06) Individual taps 47365 4356 Taps to private huts 4193 --Community taps 3639 --Bore wells 772 --Community Tanks 113 ---

- 111 Ministry of Coal-Annual Report: 2006-07

Quantity of water supplied for drinking and industrial purpose per day in SCCL: Drinking 201.69 lakh gallon Industrial 106.16 lakh gallon MEDICAL FACILITIES: 11.6. The Coal India Ltd. and their subsidiaries are extending medical facilities to their employees and their families through various medical establishments starting from the Dispensary level to the Central and Apex Hospitals in different parts of the coal-fields. 11.7. There are 86 hospitals with 5,875 beds, 429 dispensaries, 674 ambulance and 1,617 doctors including specialists in CIL and its subsidiaries to provide medical services to the employees. Besides 12 Ayurvedic Dispensaries are also being run in the Subsidiaries of Coal India Limited to provide indigenous system of treatment to workers. 11.8 SCCL is having 6 area hospitals, 1 main hospital at KGM and 40 dispensaries having 1008 beds and 36 ambulances. Whenever specilised treatment is required either for the employees or their dependents, they are referred to Super Specialty hospitals outside the colliery areas. The company is having Health Department in each area to look after the maintenance and sanitation. EDUCATIONAL FACILITIES: 11.9. The primary responsibility of providing educational facilities lies with the State Govt. However, CIL on its part has been providing financial assistance and infrastructure facilities to certain schools like DAV Public Schools, Kendriya Vidyalaya, Saraswati Vidyamandir, Ramakrishna Vivekananda Vidyapith, Delhi Public School etc and other educational institutions run by the State Government. In addition, as a part of Community Development Programme financial assistance by way of grant-in-aid/infrastructure facilities are also provided to certain privately managed schools by the subsidiary coal companies functioning in and around coalfield areas. 11.10. EDUCATIONAL FACILITIES in SCCL a) b) c) No.of High schools and Upper Primary Schools run by S.C. Educational Society No. of Degree Colleges (Women) No.of Junior Colleges (Women) : : : 18 1 1

The above educational institutions are being run by Singareni Collieries Education Society.

- 112 Ministry of Coal-Annual Report: 2006-07

Statutory Welfare Measures: 11.11. In accordance with the provision of the Mines Act 1952 and Rules and Regulations framed there-under, subsidiaries of Coal India Limited are maintaining various statutory welfare facilities for the coal miners such as canteen, rest shelters and Pit Head Baths etc. 11.12. The following Statutory Schemes are also in operation in Coal India Limited, and Singareni Colieries Company Ltd:Coal Mines Provident Fund Scheme: Employees contribution : Employers contribution : Coal Mines Pension Scheme 1998: Employees contribution:
2% of the salary from 01-04-1989 to 31.03.1996 and 2% of the notional salary from 01-04-1996 + an amount equivalent to one i crement calculated on the basis of n st salary as on 1 day of July, 1995 of employees appointed after 01.07.1995 or the date of joining whichever is later. An amount equivalent to two and one third percent of contribution of salary of the employee. An amount equivalent to one and two third percent of the salary of the employee.

12% of wages 12% (equal contribution)

Employees and Employers : Central Govt. contribution :

Non-statutory Welfare Measures: 11.13 Co-operative Stores and Credit Societies: i) In order to supply essential commodities and Consumer goods at a cheaper rate in the Collieries Central Co-operatives and Primary Co-operative Stores are functioning in the Coalfield areas of CIL. In addition Co-operative Credit Societies are also functioning in the Coal Companies. ii) The SCCL has established S.C. Co-operative Central Stores Limited popularly known as Singareni Super Bazars. Workmen of SCCL are members of these socities. Infrastructural facilities like building and furniture are provided by SCCL. 44 Sales Depots of Super Bazar are functioning in the coalfield areas. The workmen of SCCL working in the mines and departments are encouraged to become members of Employees Cooperative Credit Society with a view to inculcate the culture of thrift and avoid our employees going to money lenders for obtaining loans. There are 49 Cooperative Credit societies functioning in the mines and departments of SCCL which grant loans to the member employees for the purpose of meeting expenditure on the education of their children, purchase of two wheelers etc. Depending upon the financial status of each Coop. Credit society, personal loan to a maximum of Rs.1 lakh is being granted by the society to the member employee. The - 113 Ministry of Coal-Annual Report: 2006-07

Cooperative Credit Societies would also accept deposits from the member employees. Further, the maximum loan varies from one Cooperative Society to another Cooperative Society as per their policy. FREE SUPPLY OF LPG TO THE EMPLOYEES: iii) It has been made mandatory that all employees of SCCL including workers should go for LPG connection for their domestic use for which SCCL will reimburse the cost of 12 LPG cylinder in a year. Thus, the use of coal for cooking purposes in household is banned by not supplying coal to SCCL employees. The SCCL arranged 19 LPG distribution points all over the collieries areas for the benefit of the employees through Singareni Super Bazar. CANTEEN: iv) 60 canteens are maintained by the management of SCCL at the mines and departments. 11.14. Banking Facilities: The Management of Coal Companies is providing infrastructure facilities to various Nationalised Banks for opening their Branches, Extension Counters and ATMs in the Coalfields for the benefit of their workers. Workers are educated to draw their salaries through Banks/Extension Counters and they are also encouraged to practice thrift for the benefit of their families. 11.15 Social Security Schemes:In SCCL, the following social security schemes are operation for the welfare of its employees; Insurance Schemes:
Name of the schemes 1. 2. 3. 4. JPAIS FBIS Group Insurance Group Service Linked Insurance Scheme (GSLIS) Premium payable @ Rs.280/- for 2 years @ Rs.10/-p.m.per employee @ Rs.200/-per month @ Rs.100/-per month @ Rs.65/-per month @ Rs.60/-per month Amount payable Rs.1,00,000/Rs. 10,000/Rs. 40,000/Rs.2,00,000/Rs.1,00,000/Rs. 65,000/Rs. 60,000/-

11.16 Group Gratuity Scheme with LIC of India: (SCCL) a) This Scheme is effective from 11.12.2003 and covers both Executives and non-executives and covers trainees in regular grade and other employees who are covered under the Gratuity rules of the company. b) Gratuity will be paid by LIC of India to employee / nominee for the period of service rendered by the employee as per the existing rules and limits. - 114 Ministry of Coal-Annual Report: 2006-07

c) In addition, in case of unfortunate death of the employee, LIC would also pay gratuity for the service the employee would have rendered until retirement had he been alive. d) The total of (b) and (c) is restricted to Rs.3,50,000/- or the ceiling as prescribed in the Payment of Gratuity Act from time to time. Other welfare schemes in SCCL 11.17 Ex-gratiaAn amount of Rs.30,000/- as ex-gratia w.e.f. 1-1-2005 is being paid to the bereaved family of the workmen who die in mine accidents, in accordance with the provisions of National Coal Wage Agreement. 11.18 Matching grant Management is giving matching grant subject to a maximum of Rs.1,00,000/- (w.e.f. 01.07.2004) in case of death of a workman due to Mine Accident, Rs.75,000/- in case of death due to natural cause while on duty subject to various conditions and Rs.5000/- in case of death due to other than above two causes provided his co-workers do not resort to sympathetic strike and contribute their donation for the welfare of the bereaved family. 11.19 DEPENDANT EMPLOYMENT Dependant Employment is being provided to the dependants of employees who die in harness / declared medical unfit as per NCWA provisions subject to availability of vacancies. In SCCL as per various Settlements 344 dependents have been provided employment during the year 2005-06 ( 31st March, 2006). During April,06 to December, 06, 184 dependents have been provided employment. 11.20 In the financial year 2002-03, a settlement was arrived at on 08.03.2002 between the management of SCCL and the recognized Union on payment of Monetary Compensation in lieu of dependant employment under Companys Voluntary Retirement Scheme (VRS on health grounds).There are about 3075 dependants waiting for employment under Companys VRS. Out of which, 2,866 cases have been settled as on 31.12.2006 for payment of monetary compensation / lump sum payment of 24 months wages last drawn in lieu of dependant employment. 11.21 MONTHLY MONETARY COMPENSATION (MMC) / LUMPSUM PAYMENT: In SCCL the Scheme of MMC has been implemented in lieu of Female Dependant Employment the cases of Death / Board Medical Unfit. As per the guidelines of JBCCI, the claims are being received from areas for settlement of MMC. In SCCL as on 31.12.2006, 1798 claims have been settled and sanction of Payment Orders released to pay the beneficiaries @ Rs.3,000/- per month in case of death in harness and Rs.4,000/- per month in case of Fatal / Mine Accident. - 115 Ministry of Coal-Annual Report: 2006-07

The details of lump sum cases settled in SCCL are as follows: Period Prior to 1999 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07(upto 31.12.06) No. of cases settled 297 477 430 255 95 80 83 73

SCCL has been receiving the claims for payment of lump sum amount of Rs.3 lakh in lieu of dependent employment /MMC in respect of the cases of death/Board Medical unfit pertaining to the period 1.1.1998 to 31.12.2000. As per the guidelines, 3394 claims have been settled as on 31.12.2006. The scheme has been extended for those cases of death/BMU which arose upto 31.12.2005. The details of lumpsum cases settled in SCCL are as follow: Period 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07(upto 31.12.06) No. of cases settled 160 963 1019 719 392 141

11.22 CONSTITUTION OF AREA TERMINAL BENEFITS CELLS: The management of SCCL has constituted Area Terminal Benefits (ATB) Cell in each area with effect from 15.10.2002 to process all type of terminal benefits in the form of a single window for speedy settlement of claims on receiving intimation about superannuation/leaving companys service due to various reasons in respect of an employee. The following terminal benefits are processed by ATB Cell at the area level as per Circular No. CRP/PER/WEL/ATB/3565 dated 5.10.2002: 1. 2. 3. 4. 5. 6. 7. Coal Mines Provident Fund Coal Mines Pension Scheme Gratuity FBIS (Death) claim Refund of FBIS accumulation Group Insurance Scheme Janatha Personal Accident Insurance Scheme - 116 Ministry of Coal-Annual Report: 2006-07

Dependent employment is being provided to the eligible dependents of exemployees who died in fatal mine accident cases at area level immediately on receiving the claim for the same complying with the guidelines. If the claimant opts for lump sum amount of Rs 3 lakh or payment of monthly monetary compensation @ Rs 4000/- per month in lieu of dependent employment the same is being considered and settled on priority. ECOLOGY AND TREE PLANTATION: 11.23 Coal India Limited has been making continuous efforts to keep environment free from pollution. The Subsidiaries of CIL have been undertaking development of Green belts. The plantation is done on waste and reclaimed land. During 2006-2007 the Coal Companies have planted 24.90 Lakh(Prov.) trees. During 2006-07, SCCL has taken up planting in 252 Ha on overburden dump, 275 Ha of the planting on the surface area of UG mines and 24 KM of avenue plantation. In addition, 56782 seedlings of horticulture and afforestation species are distributed for planting in colonies, homesteads and institutions. In addition 27 parks and 98 gardens are maintained in the company promises for providing clean, green working and living environment for all. WOMENS WELFARE 11.24. The total strength of women employees in CIL and its subsidiaries as on 31.12.2006 is 29,494 which constitutes about 6.66% of the total manpower. These women workers have been employed on the surface in coalfields. Efforts have been made in the subsidiaries for gainful deployment of women not only in the conventional activities such as hospitals, welfare, security, secretarial but also in non-conventional activities like HEMM Operator, Pump Operator, Fan Operator and in the workshops. In spite of this, large number of Women workforce is under utilized and surplus in the unskilled categories. Efforts are made to rationalize such women workforce. 11.25 The strength of female employees in CIL and its subsidiaries as on 31.12.2005 is given below: Company ECL BCCL CCL WCL SECL MCL
Ministry of Coal-Annual Report: 2006-07

Strength of Female Employees 8415 6926 5395 3101 3512 991 - 117 -

NCL NEC CMPDIL DCC CIL(HQrs.) TOTAL 11.26 Womens welfare in SCCL

534 264 157 33 166 29494

i) 2841 women employees are working in SCCL. The provisions of Maternity Benefit Act are being implemented. Under this Act Women employees are sanctioned Maternity Benefit Leave. ii) In all the Areas, Womens Cells have been constituted with the women employees for effective function and to redress problems of women employees relating to their employment in writing to the Convener of Womens Cell concerned. The Convener of the Womens Cell of the Area concerned was advised to conduct regular meetings with the Committee members for redressal of the grievances of the women employees. iii) In order to create awareness among workmen and their families about savings habit, health and hygiene, literacy, childrens education, safety, post retirement planning etc, an association called Singareni Employees Wives Association (SEWA) has been constituted in all the Areas with the active participation of Wives of employees.

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

- 118 Ministry of Coal-Annual Report: 2006-07

CHAPTER 12
MEASURES TAKEN FOR IMPROVEMENT OF SAFETY
12.1 The following broad safety measures were pursued in the year 2006 for reduction of accidents in the coal mines of CIL:

Roof & Side fall is a major cause of accident and fatality in underground mines. Thrust on prevention of roof & side fall accidents was given priority in 2006, which has resulted in reduction of such type of accident in CIL. v Roof/side fall fatal accidents are reduced from 22 to 9: i.e. 59% reduction in this category compared to last year v Roof/side fall fatalities are reduced from 29 to 14: i.e. 51 % reduction in this category compared to last year Main thrust area pursued: v Creating awareness through extensive training of support personnel, dressers and supervisors. v More stress on using steel support in mines. About 90% of working districts was supported by some type of steel support. v Stress was given for support by Roof bolting. 70% of development districts are being supported with roof bolts. As a measure of precaution against in-rush of water the following measures were pursued: v Check surveys of all mines in ECL has been completed. v Joint Survey Plans has been re-examined and updated. v CCL has procured three Burn-side Boring Apparatus to probe water body in UG. v Before monsoon details Action Plan for preventive measures against inundation were prepared, implemented and monitored. To prevent accident due to gas explosion, high-level team inspected all degree-III gassy mines and corrective actions have been taken wherever necessary. v Computerised continuous Environmental Tele-monitoring System is installed in 13 highly gassy mines. v Personal Digital Gas detecting instruments are being used extensively. In addition to this the following measures were taken in 2006 Safety Audit: Safety audit of mines is a continuous exercise. This was continued in this year. - 119 Ministry of Coal-Annual Report: 2006-07

Risks Assessment and management plan for implementation have been completed in 241 mines of CIL. The Risk Assessment and management plan was followed up for implementation. To create impact and awareness on safety, three Brain Storming sessions were held where Dir(Tech)s and Chiefs of ISO of all subsidiaries participated and the strategy adopted were circulated for implementation. Thrust was given for more and more participation of workmen in furthering safety in mines. CIL Safety Board meeting was held to review safety status of 2006. The meeting was represented by members of different unions, officials of DGMS and CMDs of all subsidiary companies. Tri-partite Safety Committee (TSC) meetings were held in subsidiaries to review their safety status. ISO Inspection: Inspections by the Internal Safety Organisation (ISO) officials were intensified and report of inspection was placed before CMDs. This has been resulted positive impact in safety management. Thrust continued on Emergency preparedness through v Preparation of Mine-specific Emergency Action Plans v Demarcation of Escape Routes belowground as well as on plans. v Conducting of Mock Rehearsals, monitoring failure points for further improvement. Accident of contractors worker in 2006 has increased compared to previous years. All such accidents were analysed and comprehensive guideline to prevent accident of contractor worker was formulated and monitored for implementation. In addition to this, the following measures specific to opencast mines were undertaken:v Slope Stability Studies of Coal / OB bench and dump were undertaken during this year in WCL and CCL. v For monitoring environmental condition, Digital Dust Analysers are procured in one company in 2006. Regular examination of vehicles / equipments by competent engineer were intensified; Providing training and re-training to the HEMM operators was prioritised. 12.2 There has been continuous improvement in the safety front in the mines of Coal India Limited since its formation in 1975* . However, from 2004 Accident Statistics shows a reversing trend. The explosion at Bhatdih colliery
*

Safety statistics are maintained calendar year-wise in conformity with DGMS practice.

- 120 Ministry of Coal-Annual Report: 2006-07

resulting in the loss of 50 precious lives is a major blot on the overall performance of CIL in 2006. Subsequently, another major roof fall accident took place at Shyam Sundarpur Colliery of ECL resulting in the death of 6 loaders, where a roof fall in the goaf extended into the slice under extraction by caving. These accidents have come as a major blow on the safety front, where good progress was being made as is evident from the facts below: Fatal accidents are reduced from 73 to 49 33 % reduction Serious accidents are reduced from 391to 299 Serious injuries are reduced from 405 to 316 24 % reduction 22 % reduction

Safety Statistics for Coal India Ltd. at five-year intervals since formation of the company in 1975 and 2006 are given below in Table 1. Companywise Accident Statistics for Coal India Ltd. for 2006 are given in Table 2.

Table 1: Accident Statistics for CIL since formation at 5 year intervals & 2006
FATAL ACCIDENTS YEAR ACCI-DENTS FATALITIES SERIOUS ACCIDENTS ACCIDENTS 1456 1132 507 590 575 547 391 299 SERIOUS INJURIES 1515 1202 524 633 612 583 405 316 FATALITY RATE SERIOUS INJURY RATE

PER M.T.

PER 3 LAKH PER 3 LAKH PER M.T. MANSHIFTS MANSHIFTS 0.52 0.28 0.31 0.28 0.45 0.25 0.27 0.32 17.03 12.54 3.97 3.53 2.65 2.16 1.20 0.90 3.41 2.65 1.07 1.32 1.14 1.50 1.18 0.96

1975 1980 1985 1990 1995 2000 2005 2006

177 112 136 121 113 80 73 49

233 129 152 135 192 100 94 104

2.62 1.35 1.15 0.75 0.83 0.37 0.28 0.30

Note: Figures for 2005 & 2006 are subject to reconciliation with DGMS

- 121 Ministry of Coal-Annual Report: 2006-07

Table 2:

Company-wise Accident Statistics for Coal India Ltd. for 2006


Fatality Serious Serious rate per 3 injury rate injury rate lakh man per mte per 3 lakh shifts Coal manshifts deployed produced 0.17 2.97 1.22 1.09 0.09 0.36 0.22 0.11 0.14 0.00 0.32 1.94 0.38 0.29 1.36 0.81 0.22 0.81 0.90 0.85 0.33 1.07 1.02 1.07 1.19 0.34 0.96

Fatality rate per Fatal Serious Serious COMPANY Fatalities million accidents accidents injuries tones coal produced 8 13 92 94 0.41 ECL BCCL CCL NCL WCL SECL MCL NEC CIL 11 4 4 13 7 2 0 49 60 4 5 13 7 2 0 104 45 14 15 56 66 10 1 299 47 14 15 59 69 17 1 316 2.48 0.11 0.10 0.30 0.08 0.03 0.00 0.30

Note : Figures are subject to reconciliation with DGMS

MEASURES TAKEN FOR ENHANCEMENT OF SAFETY IN SINGARENI COLLIERIES COMPANY LIMITED 12.3 SCCL is taking mines. following safety measures to prevent accidents in its coal

UNDERGROUND MINES: 1. To control Roof and Side Fall Accidents: i) ii) Standardizastion of Roof Bolting activity in all underground mines (Churning, full column grouting etc.) Introduction of Semi-mechanization with a view to reduce exposure of workmen to potentially danger areas. 102 Side Dump Loaders and 37 Load Haul Dumpers have been introduced. Awareness Classes on Depillaring Operations Executives with the help of Animation programmes. for Supervisors,

iii) iv) v)

Workshops on prediction of roof falls by interpreting convergence readings. Scientific investigations through premier research institutions like NIRM, CMRI with regard to design of support pattern for effective management of Strata Management. - 122 -

Ministry of Coal-Annual Report: 2006-07

vi)

Training Galleries were established in all underground mines to impart better, relevant training to the workmen in addition to the statutory training that is being given by Mines Vocational Training Centres. Efforts are made to inculcate safety awareness among all workmen including training personnel so that they would keep away from set riding. SCCL is operating 47 underground mines. To avoid fatigue and drudgery of walking and effective utilisation of men and time, it is approved to commission 38 Man-riding systems in 33 mines, out of which 33 systems have been installed and commissioned. Surprise inspections by senior officers in the back shifts. Counselling to the family members in workers colonies. Disciplinary action taken against guilty in respect of set-riding accidents.

2.

To control Haulage accidents: i)

ii)

iii) iv) v)

OPENCAST MINES i) ii) Small Tippers belonging to off loading have been replaced with dumpers, there by reduction in the fleet movement. Initial training and Booster training programmes are being organised for the Contractor Workmen with a view to develop safety consciousness and to reduce the rate of accidents in opencast mines. In this regard, small pocket size book-lets on Safety Awareness in Opencast mines are prepared and they were supplied to all the Contractor Workmen. Full size posters, depicting DOs and DO NOTs are under preparation. The same will be exhibited at opencast mines to develop safety awareness. One video CD was developed, focussing on the occurrences of accidents in opencast mines and remedial measures. The same is being exhibited in the mines and through the Siti cable. Strict implementation of Traffic Rules. Improved illumination standards. Use of cap lamps by workmen in back shifts. Use of Radium Strap Jackets.

iii)

iv)

v) vi) vii) viii)

- 123 Ministry of Coal-Annual Report: 2006-07

General Safety: i) ii) iii) In every mine, Daily Safety Pledge is being administered by all workmen at the beginning of each shift. Training & Re-training of all workmen including supervisors are being taken up. Escape routes other than the normal travelling roadways have been prepared and maintained at such mines, where there is possibility of danger from Inundation, gas, fire etc., so that workers can come out safely during the mishap, if any. Karmikamitra, Press and Local Siti cable were invited education and safety awareness among our employees. to promote safety

iv)

Under taking supervisory development programme among Mining Sirdars, Overmen and Shot firers to improve the knowledge of the supervisory staff to build up confidence levels in them. v) Development of CDs on Roof Bolting activity, caving operations, Escape Routes, standard operating practices on sand stowing, running of conveyor belts and haulage and displaying them at the mines to bring awareness among the workmen. Involvement of Unions in Tripartite Meeting, Bipartite Meetings, Regional Safety Committee Meetings, Mines Committee Meetings inviting their suggestions regarding safety related activities and implementation of their suggestions. Preparation Inspectors. of check lists for meaningful inspections by Workmen

vi)

vii) viii)

Organising safety anchor programmes in the colonies among the family members of the workmen for taking safety messages up to the family members. Under taking Safety Audit Inspections among the mines and implementation of safety recommendations brought out by Audit Inspection Teams. Conducting awareness programmes for ventilation officers and safety officers to improve environment conditions in underground mines. Increasing strength of the Rescue Trained persons by 20% over the statutory requirement. Introduction of State of the Art equipment at Rescue Station. Inspections by Senior Officers in back shifts.

ix) x) xi) xii) xiv)

- 124 Ministry of Coal-Annual Report: 2006-07

SAFETY STATISTICS OF SCCL Details of fatalities and serious injuries in Singareni Collieries Company Limited are given in Table-1 to 3B. Table-1 : Details of fatalities and serious injuries in Singareni Collieries during the last five years: No.of persons seriously injured 115 120 73 163 789@ 618@ Co. Ltd.

Year 2001 2002 2003 2004 2005 2006*

Fatalities 25 23 44 14 12 19

INJURY RATE PER Million Tonnes of 3 Lakhs Manshifts Production worked F S F S 0.80 3.68 0.33 1.50 0.68 3.56 0.31 1.64 1.36 2.26 0.65 1.09 0.41 4.72 0.20 2.33 0.35 22.70 0.17 11.41 0.50 16.39 0.32 10.49

F = Fatal S=Seriously injured * Provisional. NOTE: @ Inclusive of low energy serious injuries such as fracture of phalanges/toes which are being reported now as per the decision taken in the 30th Tripartite Safety Review Meeting held on 29th Jan. 2005. TABLE-2A: Cause-wise, analysis of fatalities for the period April, 2006 to December, 2006 as compared to the same period of 2005.
Year Total Fatalities 6 18 Fall of Groun d 10 Haulag e 1 4 Explo- Machisives nery 3 2 Electri- Gas in city Rush 1 1 Others

2005 2006*

1 1

* Provisional.

- 125 Ministry of Coal-Annual Report: 2006-07

TABLE-2B:

Cause-wise analysis of seriously injured persons for the period April, 2006 to December, 2006 as compared to the same period of 2005 .
Haulage Explosives Machinery Electri- Gas in city Rush Others

Year

Total Fall of seriously Ground injured 644 455 31 23

2005 2006*

99 32

2 -

22 11

490 389

* Provisional. TABLE-3A: Year 2005 2006* * Provisional. TABLE-3B: Place-wise, analysis of seriously injured persons for the period April, 2006 to December, 2006 as compared to the same period of 2005. Year Total Seriously injured 644 455 Underground Opencast Above Ground Place-wise, analysis of fatalities for the period April, 2006 to December, 2006 as compared to the same period of 2005 . Total Fatalities 6 18 Underground 4 15 Opencast 2 2 Above Ground 1

2005 2006* * Provisional.

530 364

26 33

88 58

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

- 126 Ministry of Coal-Annual Report: 2006-07

CHAPTER 13
DEVELOPMENT ACTIVITIES IN NORTH EAST
DEVELOPMENTAL ACTIVITIES IN NEC 13.1 Introduction
In the North Eastern Region, there are coalfields in the states of Assam, Arunachal Pradesh, Meghalaya and Nagaland. However, CIL has its mining activities mainly in Makum coalfield of Assam. Five mines are now in operation in North Eastern Coalfields(NEC), out of which three are underground and two are opencast. Production in NEC, had depleted gradually from 12.01 lakh tonnes in 1993-94 to 6.28 lakh tonnes in 2004-05, but has again started improving from 2005-06 onwards . The production during 2005-06 was 11.01 lakh tonnes and during the current year upto 31.12.2006 it has been 7.41 lakh tonnes. I is t expected that the annual target (BE) of 11 lakh tonnes would be achieved by 31st March, 2007.

13.2

Market Scenario Past & Present

Market of NEC has improved constantly from 1973-74 till 1995-96. Thereafter, it declined till 2004-05. There has again been improvement from 2005-06 onward. The trend of despatch of coal in NEC is as follows : Figs. in lakh tones
Year 1973-74 1978-79 1983-84 1988-89 1993-94 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07( till Dec. 06) By rail 3.40 4.66 5.19 6.22 6.35 7.37 4.93 3.47 5.04 5.18 5.40 4.32 4.89 7.39 3.93 9.45 6.52 By road 0.78 1.56 2.56 2.24 1.16 2.94 3.35 2.20 1.96 3.03 2.20 1.88 1.51 1.31 1.75 2.25 1.63 Total 4.18 6.22 7.75 8.46 7.51 10.31 8.28 5.67 7.00 8.21 7.60 6.20 6.40 8.70 5.68 11.70 8.15

- 127 Ministry of Coal-Annual Report: 2006-07

There are hardly any linked consumers for NEC Coal in non-core sector. Apart from some tea gardens, bricks & small coke plants of the region, BRK industries of Punjab & Haryana are other big consumers outside the region who have been presently taking coal through e -marketing. NER has no major coal-based Industry excepting Hindustan Paper Corporation's Jagiroad & Panchgram Paper Mills and Cement Corporation of India's Bokajan factory. National Thermal Power Corpn. would now be a big consumer of NEC Coal for their plants outside the region. They are planning to take over Bongaigaon Thermal Power Station (BTPS) of Assam State Electricity Board at Salakati, Assam for which CIL has committed to supply total requirement of around 2.5 million tonnes of coal per annum by expanding its mining activities in the region. On request of M/S Oil India limited, a Govt of India undertaking, a Joint Task Force (JTF) of Coal India limited and Oil India Limited has been formed to explore possibility of setting up a commercial coal liquefaction plant for conversion of coal of North Eastern Region into crude oil. The minimum requirement of coal for this commercial venture will be around 3.5 million tones per annum. JTF is exploring possibilities of production of this additional quantity of coal by NEC over and above the existing demand. Moreover, North Eastern Electric Power Corporation Ltd., another Govt of India Undertaking, has intimated that they are going ahead for setting up of 3 coal based Thermal Power Stations in the region as follows: MW Proposed TPS Coalfield State Coal required/Year (Mill Tones) 1.7 2.5 0.8

4x120 6x120 2x120

Margherita Garo Hills West Khasi Hills

Makum Simsang Langrin

Assam Meghalaya Meghalaya

The future demand of coal of NER per year to be produced by NEC is detailed as under: Existing demand : 1.20 million tones NTPC for TPS of Bongaigaon : 2.46 million tones Coal liquefaction project of M/S OIL : 3.50 million tones NEEPCOs TPS at Margherita : 1.70 million tones NEEPCO for TPS of Meghalaya : 3.30 million tones Total : 12.16 million tones

- 128 Ministry of Coal-Annual Report: 2006-07

Apart from opening new opencast mines in the state of Assam, future strategy of NEC is also to explore and exploit new reserve of coal in the region. 13.3 Performance of NEC during last five years
01-02 PRODUCTION (Tones) i) Underground 180896 ii) Opencast 459119 iii) Total 649915 620300 DESPATCH (Tones) PROFIT/LOSS (Rs. CRORE) Under ground Opencast Overall -59.54 20.39 -39.15 02-03 112000 521000 633000 639780 03-04 122559 610585 733144 869680 04-05 149714 478421 628135 567540 05-06 122896 977716 1100612 1170370

-64.96 18.70 -46.26

-74.01 31.68 -42.33

70.03 14.74 55.29

-74.71 85.32 10.61

13.4

Performance of NEC during 2006-2007 (till December) Coal Production Underground Opencast Total OMS Underground Opencast Total Coal Despatch / offtake Despatch Domestic consumption Offtake Pit-head coal stock No. of mines

0.81 lakh tones 6.60 lakh tones 7.41 lakh tones


0.21 tones

6.41 tones 1.46 tones 8.15 lakh tones 0.02 lakh tones 8.17 lakh tones 2.41 lakh tones

5(Five) working

- 129 Ministry of Coal-Annual Report: 2006-07

13.5

Provisional Performance of NEC during Jan,07 to March,07 Coal Production Underground Opencast Total OMS Underground Opencast Total Coal Despatch / offtake Despatch Domestic consumption Offtake Pit-head coal stock No. of mines

0.44 lakh tones 3.40 lakh tones 3.84 lakh tones


0.22tones

6.50 tones 1.50 tones 3.85 lakh tones 0.01 lakh tones 3.86 lakh tones 2.39 lakh tones

5(Five) working

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

- 130 Ministry of Coal-Annual Report: 2006-07

CHAPTER - 14
NEYVELI LIGNITE CORPORATION LIMITED 14.1 NLC was registered as a company on the 14th November 1956. The Mining operations in Mine-I were formally inaugurated on 20th May 1957 by the then Prime Minister Pandit Jawahar Lal Nehru. Neyveli Lignite Corporation has been conferred with MINIRATNA Status. 14.2 NLC is now operating three lignite mines, and three thermal power stations. The capacity of various units is as under: Mine-I ... 10.5 MT/ annum. Mine-IA 3 MT / annum Mine-II ... 10.5 MT/ annum. Thermal Power Station-I (linked to Mine-I) 600 MW Thermal Power Station-I Expansion (linked to Mine-I) 420 MW Thermal Power Station-II (linked to Mine-II) ... 1470 MW

Mine I
14.3 The first lignite mine has been in operation since 1961 using continuous mining technology viz., bucket wheel excavators, mobile transfer conveyors and system of conveyors, which are used for excavation and transportation of lignite and overburden. Spreaders are used for dumping of overburden. The technology and the equipment were imported from Germany and German credit was availed for the import of Specialized Mining Equipment (SME). The capacity of this mine was 6.5 MT, which met the fuel requirement of Thermal Power Station-I. The capacity was increased to 10.5 MT of lignite/annum from March 2003 under Mine-I Expansion Scheme and at present meets the fuel requirement for generating power from Thermal Power Station-I and Thermal Power Station-I Expansion.

Mine-I A
14.4 The Mine-IA Project produces 3 Million Tonnes of lignite per annum, and operates using continuous mining technology viz. bucket wheel excavators, mobile transfer conveyors and system of conveyors which are used for excavation and transportation of lignite and overburden. The lignite production commenced from 30th March 2003 and the lignite excavated from this Mine is catering to the need of M/s. ST-CMS, an IPP, and the balance for the best commercial advantage of the existing power plants of NLC.

- 131 Ministry of Coal-Annual Report: 2006-07

Mine-II
14.5 The second mine was implemented in two stages. In the first stage the production capacity was 4.7 M.T. per annum and in second stage it was increased to 10.5 M.T. and the expansion was completed in December 1991 with the commissioning of last overburden system. Specialized mining equipment, viz., BWEs, spreaders, mobile transfer conveyors were imported from Germany with sizeable indigenous content. The conveyors for the second mine were supplied by M/s. Elecon Engineering, India. 14.6 All the three mines ie Mine-I, IA & II of NLC have received ISO Certification for Quality Management System (ISO 9001: 2000); Environmental Management System (ISO 14001:1996) and Occupational Health & Safety Management System (ISO 18001:1999) in the year 2005-06. Thermal Power Station-I 14.7 The Thermal Power Station-I (capacity 600 MW) has six units of 50 MW each and three units of 100 MW each. All the nine units of this power station were commissioned between May, 1962 and Sept, 1970. The equipments for this power station were imported from the then USSR under the Indo-Soviet Assistance Programme. The erection was entirely carried out by Indian engineers/ workers under the supervision of experts from USSR. Entire power generated from this thermal power station, after meeting NLC's requirement, is fed into the Tamil Nadu Electricity Board grid, which is the sole beneficiary. As the units have served more than its normal life (One lakh unit running hours), life extension programme was taken up between April 1992 and March 1999. Thus, the life of this plant has been extended by another fifteen years. Thermal Power Station-II 14.8 The second power station was implemented in two stages. Under Stage-I, 3 units of 210 MW each were commissioned between March, 1986 and January, 1988. Boilers were supplied by M/s. Trans-Electro, Hungary and turbo generators by M/s. Franco Tosi of Italy. Under Stage-II, 4 units of 210 MW each were commissioned between March, 1991 and June, 1993. Equipments were supplied by M/s. Bharat Heavy Electricals Limited (BHEL), India. Power generated from the second thermal power station, after meeting NLC's internal requirements, is shared by the Southern States viz. Tamilnadu, Andhra Pradesh, Karnataka, Kerala and Union Territory of Pondicherry in accordance with the formula on sharing of power applicable to the power stations set up in the Central Sector. Thermal Power Station-I Expansion 14.9 Government of India sanctioned the installation of 2 units of 210 MW each for expansion of the first thermal power station on 12th February, 96 at a cost of Rs. 1,590.58 Crore. The first 210 MW unit was synchronized on 21st October, 2002. Subsequently, the second 210 MW unit was synchronized on 22nd July, 2003. Power - 132 Ministry of Coal-Annual Report: 2006-07

generated from the Thermal Power Station-I Expansion is shared by the Southern States viz. Tamilnadu, Karnataka, Kerala and Union Territory of Pondicherry in accordance with the formula on sharing of power applicable to the power stations set up in the Central Sector. 14.10 All the three power stations of NLC have already received ISO Certification for Quality Management System (ISO 9001: 2000) and Environmental Management System (ISO 14001: 1996) during 2004-05. PROJECTS UNDER CONSTRUCTION/IMPLEMENTATION 14.11 Mine -II Expansion (4.5 MTPA) The Ministry has sanctioned the expansion of Mine-II from 10.5 MTPA to 15.0 MTPA of lignite on 18th October 2004 at a capital cost of Rs. 2,161.28 Crore, with scheduled date of lignite production in 53 months from the date of sanction and attaining full capacity in 57 months from the date of sanction. Order for main mining equipment was placed in January/February 2005. Supplies and erections for bucket wheel excavators, spreaders, MTC are in progress. Erection of transport crawler was completed in December 2006. 14.12 TPS-II Expansion (2x250 MW) i) Government of India sanctioned the installation of 2 units of 250 MW for expansion of second thermal power station on 18th October 2004 at a cost of Rs. 2,030.78 Crores, with a scheduled commissioning of Unit-I on the 53rd month from the date of sanction and for UnitII on the 57th month from the date of sanction. Orders for all the major packages have been placed. The site activities have commenced. Soil investigation and site grading works are completed in respect of lignite handling system, cooling towers & chimney and switch yard. The construction of cooling towers and chimney is in progress. ii) Engineering co-ordination meetings are being held with the contractors periodically to review and speed up the works. iii) Honble Prime Minister of India inaugurated the Golden Jubilee celebration of Neyveli Lignite Corporation and laid the foundation stone for Mine-II expansion and TPS-II expansion projects on 4th February 2006. 14.13 Barsingsar Mine Project (2.10 MTPA) i) The Ministry has sanctioned the Barsingsar Mine Project on 15th December 2004 at a capital cost of Rs. 254.07 crore, with the schedule of lignite production on 45th month from the date of sanction and attaining full capacity on 54th month from the date of sanction. ii) Overburden removal work by the contractor commenced from 7th August, 2006 and upto 31st December 2006, 38.80 LM 3 of overburden was removed. LOA was issued on 30th August, 2006 for construction of service building. - 133 Ministry of Coal-Annual Report: 2006-07

14.14 Barsingsar Power Project (2x125 MW) i) Government of India sanctioned the installation of 2 units of 125 MW in Barsingsar Power Project on 15th December 2004 at a cost of Rs. 1,114.18 crore, with the scheduled commissioning of Unit-I on the 48th month from the date of sanction and for Unit II on the 54th month from the date of sanction. Orders for all the major packages have been placed. The site activities have commenced. Soil investigation and site grading works have been undertaken by the contractors concerned in their respective work areas. ii) For Main Plant package BHEL have commenced the Design & Engineering works as well as started supplying materials like foundation materials, structures, etc., The civil works was commenced from August 2006 and is in progress. iii) Engineering co-ordination meetings are being held with the contractors periodically to review and speed up the works. iv) Honble Union Minister of Coal laid the foundation stone of Barsingsar Lignite Mine cum Power project in the presence of Honble Union Minister of State for Coal and Honble Chief Minister of Rajasthan on 27th October 2006. PROJECTS UNDER CONSIDERATION OF NLC 14.15 Coal based Thermal Power Plant at Tuticorin (2x500 MW) (Joint Venture Project with TNEB) i) A new joint venture company NLC Tamilnadu Power Ltd (NTPC) has been incorporated on 18th November 2005. NOC from the State Pollution Control Board has been received in October 2006. FR approved by NTPLs Board in September 2006 and by NLC Board in October 2006. Preparation of EIA-EMP report has been completed. NOC was obtained from TNPCB in October 2006. ii) Power Purchase Agreement (PPA) with TNEB was finalised and the same was approved by Neyveli TamilNadu Power Limited (NTPL) Board in its meeting held on 19th Sept., 06. Based on this, draft PPA for other EBs has been prepared and sent. iii) Feasibility report was approved by NTPL Board and NLC Board. Feasibility Report along with the draft PIB memorandum was sent to MOC on 28th November, 2006. Application for obtaining environmental clearance from the Ministry of th Environment and Forest was submitted to MOC on 6 November 2006 for onward transmission to MOE & F. Second AAP for Rs. 17.45 Cr. was sent to MOC for approval to take up certain additional activities. AAP is under implementation. 14.16 Coal based Thermal Power Plant at Orissa (4x500 MW) Formation of Joint Venture Company with MCL for mining of coal from Talabira blocks was discussed with CMD/MCL and the Super Committee Meeting was conducted on 4th September, 2006. MCL has been requested vide letter dated - 134 Ministry of Coal-Annual Report: 2006-07

12th September, 2006 to indicate the mine and quality of coal to be supplied as per the allocation letter. Preliminary survey was carried out and about 1000 hectares of land identified in and around Rengali village, Sambalpur District as alternate site for locating the plant. MOU was signed for formation of a Joint Venture Company for mining Talabira mine on 23rd November, 2006 between NLC, MCL & Hindalco. AAP is under implementation. 14.17 Jayamkondam Lignite Based Mine and Thermal Power Project : 9 MTPA of Lignite Mine and 1000 MW of Thermal Power Station.
th Government of Tamil Nadu has issued amended Order on 6 July, 2006 for taking up the project independently by NLC.

Initially action was taken to prepare the Feasibility Report and EIA/EMP report in respect of mines and thermal power station and accordingly limited tender enquiry was floated to select an agency. However, it has been decided to increase the production capacity of mine from 9.0 MTPA to 13.5 MTPA and power plant from 1000 MW to 1600 MW (2x800). Consequently, a new tender is proposed to be floated for the revised scope of work in a phased module. 14.18 Barsingsar Thermal Power Project Extension 250 MW with linked Mine (2.1 MTPA) at Bithnok & Hadla : Govt. of Rajasthan has approved the proposal with a condition that the project shall be commissioned in 50 months i.e. by August, 2010 and directed the Commissioner (Colonization), Bikaner vide letter dated 24th July, 2006 to verify the details submitted by NLC and to send the proposal to the Government to start land acquisition. Ministry of Coal has sanctioned the AAP for Rs. 5.75 crore for the project. LOA issued to M/s CMPDIL, Ranchi on STE basis for preparation of the mining plan and project feasibility report on 21.09.2006 LOI issued on 26th December 2006 for preparation of EIA/EMP report in respect of mine project. LOI issued on 8th December 2006 for preparation of EIA/EMP report in respect of Power Project. 14.19 A Power Plant (500 MW) with linked Lignite Mine (4.5 MTPA) at Riri in Rajasthan: i) Government of Rajasthan has approved the administrative sanction for acquisition of land with a condition that the project shall be commissioned in 50 months i.e. by August, 2010 and directed the Commissioner (Colonization), Bikaner vide letter dated 24th July, 2006 to verify the details submitted by NLC and to send the proposal to the Government to start land acquisition. ii) AAP for Rs.7.50 crore was sanctioned on 22.12.2005. For preparation of Environment Report for the proposed Mine and Power Projects LTE issued and tender evaluation is in progress.

- 135 Ministry of Coal-Annual Report: 2006-07

14.20 Gujarat Power Project (1500 MW) with linked Lignite Mine (12 MTPA): MOU signed between NLC and Government of Gujarat has been approved by Ministry of Coal on 28th July, 2006 at Chennai. An Advance Action Proposal (AAP) for an amount of Rs.6.20 crore was sanctioned on 19.10.2006. LOA has been issued for preparation of feasibility report and EIA/EMP report. The observations of Government of Gujarat have been incorporated in the draft JVA and the same has been sent to Government of Gujarat on 28th November, 2006. 14.21 Refinery Residue based Power Plant with a capacity of 492 MW at Chennai Petroleum Corporation Limited: A review meeting was held on 30th November, 2006 and it was decided by both NLC & CPCL to drop t e proposal because of u h n-viability of the project and introduction of further processing unit of CPCL. PERFORMANCE OF EXISTING PROJECTS: 14.22 Overburden removal, lignite production, gross power generation and its export during the year 2006-2007 upto the end of December 2006 and provisional for the period January 2007 to March 2007 are indicated below : April '06 to December'06 Product Unit MM 3 MT MU MU Target 87.75 14.775 11353 9515 Actual 91.812 13.974 10943.60 9177.60 Provisional for the period January2007 to March2007 27.70 5.40 3910.00 3283.00

Overburden Lignite Power Gross Power Export

PRODUCTIVITY: 14.23 The productivity performance in 2005-2006 and 2006-2007 upto the end of December 2006 is furnished in the table below: OUTPUT PER MANSHIFT (OMS) Unit Mines Thermal Tonne KwHr 2005 - 2006 Actual 119.46 16196 - 136 Ministry of Coal-Annual Report: 2006-07

2006-2007 (April'06 to December06) Target 104.78 11914 Actual 121.46 14334

14.24 PLF achieved by TPS-I, TPS-I Expansion and TPS-II during 2005-2006 and 2006-2007 upto the end of December 2006 are as under: (in percentage) Unit T.P.S-I T.P.S-IE T.P.S-II 2005-2006 Actual 75.92 83.78 71.24 2006-2007 (April '06 to December '06) Target Actual 69.27 69.59 68.86 72.33 87.16 58.37

AUTHORISED CAPITAL: 14.25 The authorised capital of NLC is Rs. 2,000 crore. The investment by Govt. of India upto 31.12.2006 is as under : Rs. in Crores Equity Loan from GOI FINANCIAL PERFORMANCE: 14.26 NLC has been making profits since 1976-77. During 2005-2006, the Corporation earned a pretax profit of Rs. 987.39 crore (Prov.). The Corporation has earned pretax profit of Rs. 680.83 crore (Prov.) during 2006-2007 (up to December 2006) and Rs. 315.86 crore (Prov) provisional for the period January2007 to March2007. Reserves and surplus as on 31.03.2006 was Rs. 6321.08 crore. NLC has paid 20% dividend amounting to Rs. 335.54 crore for the year 2005-2006. 14.27 The sales turnover in 2005-2006 was Rs. 2,201.41 crore against Rs. 3,001.94 crore during 2004-2005. The sales turnover during 2006-07 (upto December 2006) was Rs. 1,739.34 crore (Provl.) as against Rs. 739.83 crore during the corresponding period of last year and provisional for the period January2007 to March2007. Product wise sales during 2006-2007 (Up to December 2006) is as under: (Rs. In crores) Product Value (Provl) Lignite 162.54 Power 1575.57 Others 1.23 Total 1739.34 - 137 Ministry of Coal-Annual Report: 2006-07

(GOI portion) (including accrued interest)

: 1569.64 Nil

14.28 State Electricity Boards Dues: Outstanding dues from the State Electricity Boards as on 31.12.2006 was Rs. 721.53 crore. (Provisional). LIGNITE EXPLORATION: 14.29 Promotional Lignite Exploration: Status of lignite exploration in the state of Tamil Nadu and Rajasthan for the period upto the end of December 2006 and provisional for the period January 2007 to March 2007 is furnished below: S N Target fixed by Sub Achievement Committee on Energy April06 to Minerals (2006-07) Dec.06 Drilling (Metres) 1 Tamil Nadu 17700 3631.00 2 Rajasthan 52100 16653.10 Total 69800 20284.10 Surface Geophysical Gravity Survey (area in Sq. km) 1 Tamil Nadu 100 62.20 2 Rajasthan 200 126.44 Total 300 188.64 14.30 Contractual Lignite Exploration: The details of exploration in Riri, Bithnok and Hadla blocks in Rajasthan and Jayamgondam in Tamilnadu during 2006-07 are given in the table below: S.No State Target (figures in Metres) Achievement Provisional April06 to January 2007 to December2006 March 2007 6249.00 5185.00 9290.40 151.00 20875.40 6000.00 5500.00 3500.00 1800.00 16800.00 State Provisional Jan 07 to Mar 07

2500.00 5000.00 7500.00 38.00 74.00 112.00

1 2 3 4 Total

Jayamgondam, Tamil Nadu Bitnok, Rajasthan Riri, Rajasthan Hadla, Rajasthan

10000 10000 20000 4000 44000

- 138 Ministry of Coal-Annual Report: 2006-07

14.31 Inventory of lignite reserves in India: Lignite reserves in India have been currently estimated at around 38,274 million tonnes. The state wise distribution of lignite reserves is as follows: As on 01.04.2006 State Tamilnadu & Pondy Area Neyveli Bahur West of Bahur Jayamkondachola puram Mannargudi East of Veeranam Kudikadu
Micheal Patti

Kulanchavadi Veppangudam Kasan Kadu Nannilam-Maharajapuram Melnattam Agraharam Madukkur Anaikkadu Rajasthan Gujarat Jammu & Kashmir Kerala Total 14.32 Underground Coal Gasification:

Geological reserves (M.T.) 4,150.00 405.61 11.00 31,339 1,168.00 22,859.77 1,342.45 133.38 23.07 175.00 4.88 23.95 110.11 45.76 4,235 2,663 27 10 38,274

i) In order to utilize lignite reserves which are not amenable to conventional lignite mining and to promote clean coal technology, NLC proposes to take up a UCG project in a suitable lignite block in Rajasthan under the Science & Technology Programme of Ministry of Coal and Department of Science & Technology funding at a total cost of Rs. 1,125 lakhs. The project will be shortly implemented. ii) NLC has entered into a MOU with ONGC to develop underground gasification project in deep-seated lignite deposits, for which Sindhri and Kurla lignite deposits in the Barmer District in Rajasthan has been identified. 14.33 Coal Bed Methane (CBM): Already under promotional fund, a project for Coal Bed Methane (CBM) study has been approved by the Central Government, where scientific investigation for CBM in Mannargudi, Tamil Nadu and Barmer lignite areas in Rajasthan have been proposed. The experiments will help in deciding future strategy about CBM - 139 Ministry of Coal-Annual Report: 2006-07

development in this region. Break through in the above technologies would help in utilizing the lignite deposits which are not amenable to existing conventional mining. 14.34 RESEARCH AND DEVELOPMENT: i) The Centre for Applied Research & Development (CARD) is the in-house R&D Centre of Neyveli Lignite Corporation and has been recognized by the Department of Science & Technology since 1975. CARD is carrying out various research works on lignite utilization, diversification, product development, byproduct utilization, wasteland reclamation etc. CARD is also carrying out various environmental monitoring of air, water and soils. It is rendering analytical services to various units of NLC and other outside industries with its well-established analytical facilities. ii) A Patent has been granted to NLC Ltd., on 01-08-2006 by the Regional Patent Office Chennai, titled A process for the production of Humi Gold (A salt of Humic Acid) Patent No.D-CHE/0886. 14.34.1
S.N.

RESEARCH & DEVELOPMENT PROJECTS : MINISTRY OF COAL S&T PROJECTS ON GOING


Name of the project Approved ImplemenCost ting Agencies Remarks / Status

1.

Development of cost effective high performance highway, using fly ash composite

Rs.41.10 lakh

NLC / Anna University

2.

Development of a process for production of activated carbon from Neyveli lignite.

Rs.98.60 lakh.

NLC / RRL, Trivandrum

Laying of experimental road of 1 km length in Neyveli Township has been completed and its performance is under study. Date of completion is December 2006. Equipments required for the project ordered by RRL/T were received and erection works were completed. During the trial experiments, some problem faced in the feeder and modification work request submitted to CMPDIL, Ranchi for time extension upto March 2007 for the completion of the project.

- 140 Ministry of Coal-Annual Report: 2006-07

Studies on the use of bottom slag in crop production.

Rs. 90.36 NLC, lakh. TNAU, Coimbatore

Bottom slag incubation study is in progress. Bottom slag, mine spoil and fly ash samples were sent to TNAU, Coimbatore for conducting pot culture experiment. Lab scale incubation studies are in progress.

14.34.2 IN HOUSE RESEARCH PROJECTS: The following Plan Projects are under implementation: 1. 2. 3. 4. 5. 6. 7. Transforming NLC mine spoils into productive agricultural land through ecofriendly integrated farming system. (NLC and TNAU / Coimbatore) Pilot studies on stabilization, re-vegetation and restoration of ecology in NLC mine slopes. (NLC and TNAU/Coimbatore) Studies on renewable source of energy utilization for environment friendly application. Pilot plant feasibility studies for continuous production of various forms of potassium humate. Field investigation for identification and evaluation of mineralogical properties of hard-bands in mines. Study for production of interlocking masonry blocks using fly ash Study for manufacture of hollow blocks using ceramic waste and fly ash as composites. NIL NIL

14.34.3 FOREIGN COLLABRATION IN THE FIELD OF SCIENCE & TECHNOLOGY PROJECTS : UNDP PROJECTS : ANPOWER:

14.35 The total manpower of NLC as on 31.12.2006 is indicated below: Category Executives Non Executive Workmen Total Technical 3,174 4,501 1,438 9,113 Non- Technical 595 3,048 6,189 9,832 Total 3,769 7,549 7,627 18,945

- 141 Ministry of Coal-Annual Report: 2006-07

INDUSTRIAL RELATIONS: 14.36 The industrial relations atmosphere in NLC signifies employee friendly attitude of the management, which shows great care in dealing with human resources. The recognised Unions and Associations, in turn, are looking beyond their own problems to realise their responsibility to be more responsive to the needs of increasing productivity. RESERVATION: 14.37 NLC is following the rule of reservation prescribed by the Government of India. All directives issued by Government of India in the matter of reservation in recruitment and promotion are being followed. A cell exclusively for SC/ST matters is functioning under a Liaison Officer at the level of General Manager to ensure that the reservation rules and guidelines for SC/ST are implemented properly. The details relating to the percentage of reserved categories of employees as on 31st December 2006 are furnished below: Applicable Percentage of Reservation SC ST 15 7.5 16.66 Excl. Sweepers Sweepers 19 19 7.5 1 1 Manpower position Total 3,416 353 11,507 3,603 66 18,964 SC 680 77 2,567 658 47 4,029 ST 91 6 134 14 -245 Available Percentage SC 19.91 21.81 22.31 18.26 71.21 21.27 ST 2.66 1.70 1.16 0.39 -1.29

Group A B C D Total VIGILANCE:

14.38 To make the administration efficient, effective and clean without corruption, multifaceted strategy covering areas of preventive, detective and punitive vigilance are continued to be adopted as per the guidelines of Chief Vigilance Commissioner. Periodical surveillance, collection of intelligence information and frequent surprise checks are being carried out in various corruption prone areas in order to minimize / eradicate various malpractices. i) Allegations of corrupt practices, favoritism, breach of rules and procedures were enquired into thoroughly and the management was apprised for initiating necessary action. Close liaison is being maintained with the local Police Departments, CBI/Chennai and CVC for carrying out vigilance activities of NLC. In terms of instructions of the Government, Agreed List of Officers of doubtful integrity is prepared in consultation with the Central Bureau of Investigation and surveillance mounted on the activities of the executives. In addition to this, punitive action was - 142 Ministry of Coal-Annual Report: 2006-07

also recommended against workmen, supervisors, contractors whose lack of integrity came to notice.

executive

and

suppliers/

ii) Total number of complaints and the source information received and disposed off during 2006-2007 are tabulated below: Description Complaints brought forward previous year (2005 2006) Complaints received during this year Complaints disposed Complaints pending from 2006-2007 upto December, 06 11 104 98 17

WELFARE
Housing: 14.39 The sprawling residential township with a maze of roads, excellent drainage systems, waste disposal arrangements, water facility and other recreational facilities provide the perfect ambience for the employees and their dependents to feel comfortable, secured and create the atmosphere of being well cared for by the management. As high as 21,510 houses nestled in the green canopy of trees make NLC township a place ecologically balanced and environment friendly to live in. It has excellent facilities for quality education up to college level, medical care, recreation, religious needs and shopping. Medical Services : 14.40 NLC Hospital is well equipped to provide a wide range of health care services to its employees, dependent population and other rural communities (over 3,00,000). It engages in four broad areas of activity: (i) (ii) (iii) Operation of the General Hospital (369 bedded acute-care Hospital). Operation of 5 peripheral dispensaries to ensure better accessibility in the area of outpatient care to residents. Operation of community health programme to help the surrounding rural population meet their basic medical needs. Eye camps, polio, screening camps and general community health screening form part of this programme. During the year 2005-06, a number of medical camps were conducted, which includes a major opthal screening camp for implanting IOL to selected rural patients with cataract problems. - 143 Ministry of Coal-Annual Report: 2006-07

(iv)

Operation of occupational health services to ensure optimal health, safety and well being of employees and first aid care at plant level.

Family Welfare: 14.41 NLC Hospital has been singled out as one of the best medical institutions in the State for performing sterilizations with zero failures. During the year 2006-2007 up to December 2006, 174 (prov.) sterilizations were performed. EDUCATION: 14.42 The NLC township is teeming with over 34 schools and a college for meeting the educational needs of children of employees and children from nearby villages. Drawing support from participation of other institutions, NLC offers quality education with most of the children making appreciable grades at high school and plus two levels. 15 NLC managed schools have also come in the limelight in the recent years for achieving excellence in the school and college curriculum. NLC has also instituted a number of scholarship schemes to harness the full potential of children. SPORTS: 14.43 The bottom-line equations of NLC include programmes and facilities for the development of sports among employees as well as students. This goal is best served by the development of sports stadium that houses facilities for conducting state and national level tournaments. Schools make best use of these facilities to give equal importance to sports activities that help the students achieve overall development. The Sports Control Board is behind planning sports activities and developing facilities to meet the growing needs for sports and leisure time games. CONCERN FOR SOCIAL WELFARE: 14.44 NLCs concern for social welfare is highlighted by its commitment to serve the cause in general and more particularly of physically, mentally and socially handicapped population of Neyveli and beyond, through organisations such as Neyveli Health Promotion and Social Welfare Society and SNEHA Opportunity School. While the former upholds the specific needs of physically handicapped and destitute women through rehabilitation programmes, the latter offers timely succours to mentally retarded children in making them useful and productive members of the society. NLC has not only provided infrastructure facilities for the operation of these programmes, but more importantly, has extended financial support for their sustained growth. HUMAN RESOURCE DEVELOPMENT: 14.45 Training is a powerful tool, which NLC utilises effectively to harness its vast human resource potential, manage their career development and plan for enriching their skills/professions in line with the technological advancement. The training complex with modern facilities organise various training programmes to make the - 144 Ministry of Coal-Annual Report: 2006-07

employees update their knowledge. The demands for continuing education at shopfloor level are also fully met. To nourish managerial excellence, executives, professionals and skilled workmen are sent for training outside in premier training institutions in India and abroad. Training facilities offered by equipment manufacturers are also being utilised before installing new equipment/machinery. Details of training during 20062007 up to December 2006 are: Details In-house programme Deputation training within India Training abroad Total April 06 to December 2006 Provisional for the period January2007 to March2007 7,399 2156 417 Need based 17 Need based 7,833

14.46 ENERGY CONSERVATION: Energy Conservation Measures taken


I) POWER SECTOR Steps were taken to minimize the auxiliary power consumption in all three thermal power stations. Auxiliary power consumption was below the CERC norms of 12.00 %, 10.00 %, and 9.5 % respectively for TPS-I, TPS-II and TPS-I Expansion. An Energy Policy has been framed for NLC power plants for conservation of energy resources. a) 1. THERMAL POWER STATION - I Energy audit was conducted in one 50 MW unit and in one 100 MW unit of Thermal Power Station-I through an external energy auditor. The recommendations given by the external energy audit firm were implemented wherever possible and remaining are under techno-commercial viability study. Some of the measures requested were : b) Blinding of Sixth stage of KSB feed Pumps; Introduction of Hydro coupling for Feed Pumps; Introduction of VFD for Drainage Pump.

THERMAL POWER STATION I EXPANSION Each unit is having 2 Nos of Cold Gas Recirculation (CGR). Normally both the fans are running in both the units. Based on the suggestion from the energy conservation cell, a detailed study was conducted on the effect of stopping one CGR fan.

- 145 Ministry of Coal-Annual Report: 2006-07

c)

THERMAL POWER STATION II 1. Requisition for budgetary offers to conduct energy audit in TSII was sent to six firms, which are in the recommended list of accredited energy auditors by BEE, Ministry of power, Government of India. In Unit-6, HPH 6 performance was improved by arresting by-passed feed water. A trail operation was carried out in the circulating water (CW) system / Stage-I for dosing calcium scale inhibitor to withstand calcium up to 400 ppm in the CW system against the present level of 300 ppm. The purpose of the trial was to conserve water by stopping the bore well water pumps, which, in turn, reduce energy consumption. The introduction of new chemical in the CW system has resulted in the reduction of blow down water considerably. Unit 3 RAPH basket elements were changed. The efficiency of the unit is expected to improve by energy saving. Identification of valves passing and system leakages are taken up in all units. Energy Circle movement has been initiated in TS-II on 01.06.2006 with an attempt to have active participation of all the employees.

2. 3.

4. 5. 6. II)

MINES SECTOR a) 1. 2. 3. b) 1. MINES-I & IA Replacing the MG set with energy efficient microprocessor based thyrister sets in the slew drive in BWE 1356 is being taken up. Replacing the MG set with energy efficient microprocessor based thyrister sets in the slew drive in BWE 1357 is being done. Introduction of one system automation to reduce idle running of conveyors in Mine-IA top bench is under progress. MINE-II Rearrangement and clubbing of loads on 25 MVA, 230 / 11KV transformer in SS were done during low loading periods such as conveyor shifting, re-routing and during overhaul etc., resulting in optimum utilization of loading capacity and saving of energy. Excess drive motors in conveyors were isolated / removed depending upon the power requirement based on the conveyor length and lift. Idle running of conveyors minimized. PLC introduced for the yard conveyor drive in Tripper-182, 183 and 2000mm Conveyor DHCS-M4. - 146 -

2. 3. 4.

Ministry of Coal-Annual Report: 2006-07

5. 6.

Digital meters are procured for measuring the electrical parameters and are being provided. Energy efficient fittings with stainless steel reflectors (E.g. M/s. Stigma make fittings) are being provided in place of conventional HPSV fittings. Domestic supply :

III.

TOWNSHIP ADMINISTRATION : 1. More than 950 defective electromagnetic energy meters were replaced by electronic energy meters. 2. Transformers : Over loaded 250 & 315 KVA transformers were replaced with 315 & 500KVA transformers. This has reduced the load loss of transformers. 3. Energy efficient electrical luminars : Energy efficient electrical luminars and equipments were purchased. These chokes consume 15 watts less power. 4. Synthetic Overhead Tanks : Synthetic overhead tanks are being installed in four blocks. This has reduced pumping time by one and half hour.

IV)

IN HOUSE TRAINING CONSERVATION.

PROGRAMME

ON

ENERGY

In house training programme on Energy Conservation is being conducted every year regularly to create awareness among the employees on energy conservation. This year the programme on Energy Conservation was conducted on 21.04.2006, 21.06.2006 and 22.09.2006. Energy Management Programme was conducted on 25, 26.08.2006. Energy Conservation Week is being celebrated during December every year. Oil Conservation Week is also celebrated in co ordination with Indian Oil Corporation every year to educate the employees about the oil conservation measures that can be adopted to save the precious oil. 14.47 E-GOVERNANCE 1. IVDFN Project - Integrated Voice and Data Fiber Network: Additional nodes provision in Mine I & IA area and in township area was completed by 18-10-2006. It is expected that Mine II area will be completed shortly.

- 147 Ministry of Coal-Annual Report: 2006-07

2.

Centralized Attendance Monitoring System Attendance monitoring system has been implemented successfully in all the major units of NLC and the Central Attendance Monitoring System Server installed at Corporate Office, Neyveli on 04-04-2006. Biometric based Attendance Management System has been implemented in the Corporate Office on 01-06-2006 and TS II Expansion on 05-06-2006. It is also planned to extend the Biometric Attendance Management to all locations in NLC township and office areas in the next phase.

3.

Workflow Applications The following applications have been developed, and the status of implementation is as below: In phase-I, application for festival advance, reimbursement for conveyance, bulletin board and circular communication etc. could be taken up. Implementation started from November 2006. In phase-II, application for LTA, LTC claims, pay certificate, income tax declaration etc. could be covered. Implementation started from November 2006. In phase-III, application for facility management system, file flow processing, reimbursement of professional membership fees, message from senior management etc. could be covered. Implementation started from November 2006.

4.

Implementation Of Online System Migration, Portal Development, Information Kiosks Deployment and Workflow management. a) It is planned to integrate the various online database systems to form a central data center. It is also planned to incorporate the CERT - Guide lines on security aspects. All the existing finance, payroll and personnel applications of NLC are in two tier architecture (Client Server technology) with Oracle Data server 7.1. It is planned to implement the latest three tier architecture (Web enabled Architecture) on latest RDBMS with proper database level integration.

b)

5.

E-payment: Payment is made to vendors using the Net banking services offered by the State Bank of India .The services of other banks is planned to be utilized in future.

6.

Personal details through NLC Intranet website: Facilities have been created in NLC intranet website to view the personal details of the employees against user name and password. An employee can - 148 -

Ministry of Coal-Annual Report: 2006-07

view his personal details including salary, loan details etc in PCs using NLC campus-wide LAN connectivity. In future, it is planned to extend this facility to all the employees through Information Kiosks. 14.48 AWARDS: i) TPS-II has bagged the following three Safety Awards instituted by the Government of Tamilnadu (i) First prize for the longest Accident Free Period Category for the year 2003. (ii) First prize for the longest Accident Free Period Category for the year 2004. (iii) Second prize on reduction in accident Rate catergory for the year 2003. Scope Meritorious Award for Corporate Social Responsibility and Responsiveness for the year 2004-05 instituted by the Standing Conference of Public Enterprises (SCOPE).

ii)

14.49 MOU Ranking: NLC is a MOU signing PSU and its MOU rating for the year 2005-2006 based on provisional data is Excellent. 14.50 GENERAL: NLC has won the SCOPE Meritorious award for Corporate Social Responsibility and Responsiveness for the year 2004-05. An MOU was signed between Government of Gujarat and NLC at Chennai on 28th July 2006 for setting up of lignite mine cum power project at Gujarat (12 MTPA of lignite and 1500 MW power plant). The 60th Independence Day was celebrated on 15th August 2006 in a grand manner. On this occasion, special awards, viz. Long Service Awards and Family Planning Awards to the employees, gallantry awards to security, vigilance and sports personnel were distributed. Artificial limbs to the physically handicapped persons were also distributed. Programmes of variety entertainment were performed by school children. The Companys 50th Annual General Meeting was held at Chennai on 6th September 2006. Dividend of 20% was declared to the shareholders for the year 2005-2006. ----- x ----- x ----- x -----

- 149 Ministry of Coal-Annual Report: 2006-07

CHAPTER - 15
INTERNATIONAL CO-OPERATION
Co-Operation with SAARC countries: 15.1 As decided in the SAARC Energy Ministers Conference held on 1.10.2005 at Islamabad, Ministry of Coal, in association with Coal India Ltd. had made arrangements to organize a Seminar on Strategies on promotion of Coal Development and Clean Coal Technologies in SAARC Region on 20.11.2006 at New Delhi. Due to non-confirmation of participation from the Member States the Government of India decided to postpone the Seminar. Fresh date for organizing the Technical Seminar on Coal is yet to be intimated by Ministry of External Affairs. Adviser (Projects), Ministry of Coal has been nominated from this Ministry in the Panelists for the proposed South Asia Energy Dialogue. Co-Operation with CHINA 15.2 Meetings of the Indo-China Joint Working Group on Coal are held th alternatively in India and China every year. The 8 meeting of the Task Force and the 10th Session of the JWG were held in Beijing during 10th 11th November 2005 in Shanghai, PR China. The 9th Task Force meeting and the11th Session of the of Indo-China Joint Working Group on Coal are proposed to be held in the first week of April, 2007. The Chinese side has been invited to attend the meeting of the JWG in New Delhi. Co-Operation with RUSSIA 15.3 The 12th session of Indo-Russian Inter-Governmental Commission (IRIGC) was held in October 2006, in which the following items were discussed:i) ii) iii) iv) MOU between Central Mine Planning & Design Institute (CMPDI) and VNIMI, Russia Opportunities of Indian investment in Russia on virgin/developed blocks for coking and also low ash thermal grade non-coking coal. MOU between CMPDI and Skochinsky Institute of Mining, Russia in respect of Underground Coal Gasification. Training including Hands on training of CIL personnel on Russian make HEMM and Drills, in operation across CIL.

Action is being taken to further strengthen the relations between two countries.
Co-Operation with BELARUS

15.4 Third meeting of the India-Belarus Inter-Governmental Commission for Economic, Trade, Industrial, Scientific, Technological and Cultural Co-operation - 150 Ministry of Coal-Annual Report: 2006-07

was held on 11-13 July 2006 in Minsk with the objective of strengthening and enhancing bilateral relations between the two countries. The meeting was co-chaired by Dr. Ashwani Kumar, Minister of State (Industrial policy and promotion) of the Republic of India. The protocol related to coal were: a). Agreement to facilitate promotion of Belarusian dump trucks in Indian markets. There is an immediate possibility of Belarus Trucks export to India of not less than 150 units per year. Both sides agreed to promote/facilitate supplies of dump trucks produced by RUEBELAZ for the Indian Public Sector Company Coal India Limited and other Indian Companies subject to mutual agreements during 2006-2010. Indian side was facing difficulty in import of tyres due to non-adherence of contract conditions which could negatively affect future transactions between the two countries. Both sides understood the necessity of long-term agreement on Off-take basis between M/s Balshina and Indian Companies like Coal India Ltd to ensure sustained supply of giant tyres as per needs of Indian Coal Industry. Both sides agreed to facilitate business contract between Commodity/stock exchange of the two countries.

b).

c).

d).

Director (Technical), CMPDI was nominated Nodal Officer to further pursue above matters with the appropriate authority. With reference to the visit of a high level delegation from India between 10-13 Apr 2006 and also the above protocol, correspondence was made with the Director of the JSC Belarus Tyre Company Belshina requesting broad framework agreement with terms and conditions of offer for the proposed o ff-take of tyres. CILs requirement of tyres for next three years was indicated, requesting additionally a nodal officer for carrying forward the proposed joint venture. Co-Operation with FRANCE 15.5 The 5th meeting of the Indo-French Working Group on Energy was held in Villa Madichi, Hotel Taj Man Singh, New Delhi on 29th November, 2005. Representatives from CIL and CCL attended the meeting. During the meeting the Indian side requested co-operation from the French side on the following issues : a) Environment and waste Management, b) Coal Mines closure, c) Coal mines fire and technology up-gradation. d) Fly ash utilization, e) Clean coal technology. .

- 151 Ministry of Coal-Annual Report: 2006-07

The French side requested the Indian side to focus on the following two issues at the first instance instead of going for all the issues above : i) Clean coal technology including Carbon di oxide sequestration. ii) Setting up of self-firing brick plant using coal mining waste. Blasting Gallery Technology was introduced at GDK-10, GDK-8 and VK-7 inclines in collaboration with France. These projects have been completed. No bilateral meeting with France took place during the year so far. 15.6 Co-Operation with GERMANY The 16th meeting of the Indo-German Working Group was held on 25.11.2004. The 17th meeting of the working Group is likely to be held at Bauma in Minich in April, 2007. The follow up action on decisions in the 16th meeting will, inter-alia, be reviewed in the 17th meeting. Co-Operation with POLAND 15.7 15th Session of the Indo-Polish Joint Commission Meeting was held in Warsaw, Poland on 19-20 May, 2006. Coal India Ltd. forwarded the following agenda items for discussion in 15th Session. i) ii) Discussion on commercial opportunities for Polish companies on risk/gain sharing basis in opencast & underground mines. Scientific & Technical co-operation between Polish and Indian companies for - Recovery of coal from washery rejects, iii) Investment by CIL-SAIL in coking coal mines of Poland. Issues related to failure of PSLW system, introduced by Kopex, Poland in Moonidih mines in the year 1992. Training of Indian personnel in Poland, Finalising MoU between CMPDIL and KOPEX for Joint Consultancy. Resolving outstanding issues like :

Hon'ble Minister of Commerce and Industry, Govt. of India, held meeting with the Minister of Economy, Poland who expressed Poland's interest in assisting India in the power sector. Minister of Commerce and Industry, Govt. of India explicitly mentioned India's interest in the areas of working deep mines and coal gasification. Further details on the issue may worked out in appropriate bilateral forum between the two countries.

- 152 Ministry of Coal-Annual Report: 2006-07

Co-Operation with UNITED KINGDOM 15.8 No meeting of the Indo-British Coal Forum (IBCF) has been held during the year. A concept note on "Zero Emissions Coal for India" prepared by the Joint Collaboration Dept. of Environment Food and Rural Affairs (DEFRA) and Deptt. of Trade and Industry - both of UK, was forwarded by British High Commission, New Delhi to this Ministry. The note offers a forum for long-term Indo-U.K. Cooperations with focus on "Zero Emissions Coal" using carbon dioxide capture and storage (CCS) to reduce CO2 emissions, particularly from large power stations. The collaboration envisages undertaking assessment of viability and technological options for demonstration of CCS in India. The project would cost between 220 K and 500 K with a time frame of 2-4 years. The subject matter is being examined by Central Mine Planning & Design Institute (CMPDIL). International Co-operation with EUROPEAN UNION (EU) 15.9 The India-EU Energy Panel was constituted as a follow up of a decision taken at the 5th India-EU Summit held in Hague in November, 2004. The first meeting of the Indo-EU Energy Panel was held in Brussels on 29th June, 2005 in which emerging energy scenario and future prospects for development of the fuel chains and key priorities for cooperation were discussed. The Panel decided to set up working groups in the following areas : Coal and clean coal conversion technologies Energy efficiency and renewable energies Fusion energy including Indias participation in International Thermo nuclear Experimental Reactor (ITER) project.

15.10 As a follow up of the decision made by the Panel, the Working Group on Coal and Clean Coal Technologies was constituted in March, 2006. 1st meeting of the working group on Coal and Clean Coal Conversion Technologies was held on 22-3-2006 at New Delhi. Second meeting of the India EU Working Group on Coal and Clean Coal Technology was held on 28.11.2006 at Brussels, Belgium. Various areas discussed for cooperation were: i) Capacity creation in resource assessment of CBM/CMM/AMM ii) In-situ coal gasification. iii) Coal beneficiation for coking and thermal coals for iv) Development of mining methods for steep and thick seam working. 15.11 EU side has offered to support a study on Coal Quality Management System in India. CMPDI is the nodal agency for this study. Co-Operation with CANADA 15.12 An inter-Ministerial meeting was held under the Chairmanship of Addl. Secretary (Power) on 14.09.2006 to consider a proposal for an India-Canada Energy Dialogue. Ministry of External Affairs, Ministry of Coal, Ministry of Petroleum and - 153 Ministry of Coal-Annual Report: 2006-07

Natural Gasses and Hydro Wing of Ministry of Power participated in the meeting. The two sides agreed to set up an Indo-Canada Energy Forum. Terms and conditions for the Indo-Canada Forum on Energy are being finalized. The Prospectors and Developers Association of Canada (PDAC) holds an annual convention and trade show, which is one of the largest and prestigious annual events of the world mining industry where a large number of prospecting and mining companies come together. 75th International Convention Trade Show and Investors Exchange is scheduled to be held in Toronto during 4-7 March, 2007. PDAC 2007 would provide a platform to facilitate information sharing and partnership between Indian and Canadian Investors and explore possibility of acquiring Canadian expertise. Preparatory meetings for participation of Indian Mining Industry at PDAC 2007 are being held under the auspices of Ministry of Mines. Coal India Limited would depute a delegation of three officers to attend the Convention in Toronto, Canada from 4-7 March, 2007.

Cooperation with USA 15.13 India and United States have agreed to establish a bilateral Energy
Dialogue that recognizes the importance of energy needs of the growing Indian economy. The following items were included for discussion in the Coal Working Group. (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) Improvement in productivity of opencast and underground mine in India. Washing of coal/clean coal technologies. In-situ coal gasification. Coal bed methane. Safety in mines. Closure plan of mines. Carbon sequestration. Business opportunity in coal mining for Indian and USA company.

The third meeting of India US Coal Working Group was held on 4-5th April, 2006 in New Delhi. A number of focus items were identified along with work plan in that meeting. Eight projects were identified for taking up jointly with US assistance/collaboration. Co-Operation with MOZAMBIQUE 15.14 Mozambique is keen to have an institutional frame- work through which continued technical co-operation and mutual assistance can be established in coal sector between the two Govts. Singareni Collieries Company Limited (SCCL), Central Mine Planning & Design Institute Limited (CMPDIL) and Neyveli Lignite Corporation (NLC) have offered to extend their services in exploration, preparation of plan/feasibility report/project report, survey, mining methods and in erection, commissioning, operation and maintenance of thermal power stations. - 154 Ministry of Coal-Annual Report: 2006-07

Mozambique was keen to have an institutional framework through which continued and sustainable technical cooperation could be established in the coal sector between two Governments. Keeping in view these objectives, an MOU was entered into between Government of Mozambique and the Republic of India on 26th May 2006 to promote and expand bilateral cooperation in the field of coal resources between two countries, strengthening the integration and working relationship between Research and Training Institutes, promotion and encouragement of contracts between private and public enterprises, mineral exploration and exploitation and technical assistance to design implementation and monitor of coal projects and training in areas of mine safety. A Joint Working Group has also been formed to coordinate the implementation of the activities which would meet once a year alternatively in India and in Mozambique. Co-Operation with ZIMBABWE 15.15 Zimbabwe is identified as a preferred destination for Coal Videsh because of its untapped quality coal resources, favorable FDI policies and excellent bilateral relations which exist between the two countries. CIL can consider exploration and development of coal b locks on stand alone basis or enter into a partnership with any other company for development of their blocks under concession. Dialogue has been initiated with Govt. of Zimbabwe. 15.16 Co-Operation with AUSTRALIA i) In the last meeting of the Joint Working Group, the Australian side suggested forming of a sub-group to address coal related issues in a more comprehensive manner and to identify avenues for greater Australia-India collaboration. It was further agreed to hold discussions between the two countries on the possibilities of st holding a Coal and Mining Australia-India Forum. The Forum was organized on 1 nd and 2 February, 2006 in India. The Forum was attended by academic experts, professionals and companies engaged in mining industries from the two countries. The delegation of about 77 members, representatives mining companies academic and research institutes, Federal and provincial governments, individual Associations, etc. from Australia attended the Forum. The private sector companies who have been allocated blocks for captive mining also attended the Forum in big numbers. This Ministry through this Forum brought together the public and private sector companies operating in coal sector in India to interact with the representatives of the mining industry and Government of Australia. ii) The issue relating to cooperation in the fields of coal mining, methane, beneficiation, clean technologies, waste management and non invasive exploration techniques, emerging technological issues in the field of equipment selection, processing of coal, mining closure, planning and design of geological complicated deposits were discussed. The Australian side explained the investment opportunities in coal mining industry in Australia and also invited the Indian companies to explore - 155 Ministry of Coal-Annual Report: 2006-07

the investment opportunities for Indian companies in Australia. Similarly, investment opportunities in India were highlighted, too. The two sides identified areas of mutual interest and cooperation in the areas of mutual interest. FOREIGN COLLABORATION Coal India Ltd. 15.17 Coal India is looking for foreign collaboration with a view to : (a) bringing in proven technologies and advanced management skills for running underground (UG) and open cast (OC) mines and in coal preparation for efficient management of the Indian coal industry and development of necessary skills by way of appropriate training etc.; (b) exploring and exploiting of coal bed methane and in-situ gasification of coal; (c) locating overseas companies, interested in joint ventures in the countries, rich in coking coal reserves, to deal with the rise in demand of coking coal in the country; Keeping these objectives in view, discussions were held in the bilateral meetings with a number of countries such as, 'Russia, Germany, Australia, China USA etc.. The priority areas, inter alia, include acquiring modern technology for mass production in underground and open cast mining, methodology of underground mining in difficult geological conditions including steep seams, fire and subsidence control, mines safety, coal preparation, use of washery rejects for power generation, exploitation of coal bed methane from working mines and abandoned mines, coal gasification, application of geographical information system(GIS), environmental mitigation and emission trading, overseas ventures for sourcing coking coal etc.. Training of CIL personnel for effective adaptation of the state of the art technologies, available with the developed countries, is also a prime subject of focus. ACQUISITION OF COAL PROPERTIES ABROAD 15.18 Coal India Limited (CIL) has proposed to set up a new subsidiary for foreign venture to be registered as Coal India Videsh Limited (CVL). The Article of Association of the proposed subsidiary have been approved by CIL Board in its 219th meeting held on 8th January 2005 and forwarded to Ministry of Coal for necessary approval from the Government. The company would be registered subsequent to Govt. approval. However, in order to perform the assignments relating to setting up of CVL and taking forward the intention of acquiring the coal equities abroad, a dedicated Task Force has been created in Coal India Limited in form of Coal Videsh Department at Coal India Limited (CIL) Headquarters, Kolkata. The Department is headed by a Chief General Manager (Mining) and comprises of multi-disciplinary team having mining engineer, geologist, MBA & Finance professionals. This Department reports to Director (Technical), CIL and performs key assignments such as:- 156 Ministry of Coal-Annual Report: 2006-07

i) ii) iii) iv)

Exploring opportunities in destination countries; Examining the opportunities and prioritizing them; Visiting the destination countries to carry out on-site technical, financial commercial and legal due diligence and Framing of investment proposals, negotiation and deal finalization.

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

- 157 Ministry of Coal-Annual Report: 2006-07

CHAPTER - 16
PROGRESSIVE USE OF HINDI
16.1 Ministry of Coal along with its all Subordinate offices/Companies and Autonomous Body continued its efforts for propagating and spreading the progressive use of Official Language Hindi during the year 2006-07. This Ministry is committed to increase the progressive use of official language. Instructions received from Department of Official Language, Ministry of Home Affairs and Committee of Parliament on Official Language are circulated regularly among the officers/sections of the Ministry as well as the Subordinate Offices/Companies and Autonomous Body under its control to ensure implementation of the statutory provisions of O.L. policy of the Union and to fully achieve the targets fixed in the Annual Programme issued by Department of Official Language. 16.2 In order to increase the progressive use of Hindi in day-to-day official work, many incentive schemes have been introduced by the Ministry for officers/employees, and special appeal/circulars are also issued from time to time in this regard. With a view to facilitate noting and drafting in Hindi, bilingual standard drafts, dictionaries, help books etc. have been distributed among all officers/sections of the Ministry. 16.3 The Ministry of Coal is fully computerized and bilingual facilities for doing work in Hindi have also been provided with the PCs to all sections of the Ministry. Besides, the Website of the Ministry has been prepared in bilingual form (Hindi/English). 16.4 The meetings of "Official Language Implementation Committee" are being organized regularly in the Ministry and all subordinate offices/ companies and Autonomous Body under its control and emphasis is given on increasing progressive use of Hindi in these meetings. 16.5 With a view to create consciousness and to accelerate the use of Hindi as Official Language in official work in the Ministry and the subordinate offices/companies and Autonomous Body under its control, Hindi month, Hindi fortnight/Hindi week was orgainsed in September, 2006 and Officers/ Employees who did excellent work in Hindi were also awarded. 16.6 The Ministry orgainsed 'Hindi Pakhwara' from 14.9.2006 to 28.9.2006. During this Hindi Pakhwara, various Hindi Competitions were organised. Secretary (Coal) gave away cash award and certificates to the winners on 14.11.2006. - 158 Ministry of Coal-Annual Report: 2006-07

16.7 The meeting of High Power Hindi Salahkar Samiti of the Ministry was convened on 28th April, 2006 under t e Chairmanship of Hon'ble Minister of Coal. h During this meeting, Hon'ble Minister released sixth issue of inhouse Hindi Magazine 'Koyal' 'as special issue of Munshi Prem Chand on the occasion of his 125th Birthday celebrations. In addition to it, a meeting of Hindi Salakhar Samiti was held on 22nd February,2007 under the chairmanship of the Hon'ble Minister of State for Coal. During the said meeting, Hon'ble Minister of State for Coal also released seventh issue of inhouse maganzine 'Koyal'. The members of the Committee appreciated the magazine. 16.8 Besides, Subordinate offices/Companies under the Ministry continued to bring out their Hindi publications viz. 'Khanan Bharti', Khanij Urja, 'CCL News', 'Pratibha', 'Koyla Ratna' and 'Brown Coal' which play an important role in propagation of progressive use of Hindi. 16.9 The Hindi magazine "Khanan Bharti" is a representative magazine of CIL and it is published by its subsidiary company "Western Coalfields Ltd.". The earlier issue of the said magazine was awarded a "Rastriya Rajbhasha Patrika Shield" by Rastriya Hindi Academy, Roopambera in its Rajbhasha Sammelan organised in October, 2006. 16.10 'Rajbhasha Shree Samman',Rajbhasha Kirti Samman' to Central Coalfields Ltd. (CCL), Ranchi, 'Rajbhasha Shree Samman',Rajbhasha Kirti Samman' & 'Rajbhasha Shilpi Samman' to Western Coalfields Ltd(WCL),Nagpur, 'Rajbhasha Shree Samman',Rajbhasha Kirti Samman', 'Rajbhasha Shilpi Samman' & 'Rajbhasha Vishishta Samman' to South Eastern Coalfields Ltd. (SECL) Bilaspur, Rajbhasha Kirti Samman',& 'Bhartendu Rajbhasha Sahitya Shiromani Samman' to Northern Coalfields Limited(NCL),Singrauli(M.P.) were awarded in All India Rajbhasha Conference organised by Bhartiya Rajbhasha Vikas Sansthan , Dehradun in October,2006 in Vishakhapatnam for their excellent work done in implementation of Official Language. 16.11 Eastern Coalfields Ltd. (ECL), Burdwan & Western Coalfields Ltd(WCL),Nagpur were honoured, with a "Rajbhasha Gaurav" prize in All India Rajbhasha Conference orgainsed by Bharatiya Rajbhasha Parishad, New Delhi on 26-12-2006 in Mahabalipuram/Chennai for an excellent work done in the implementation of Official Language. 16.12 Officials are nominated for training in the classes of Hindi Bhasha, Hindi typing and Hindi stenography under Hindi Teaching Scheme conducted by Department of Official Language, M/o Home Affairs in the Ministry and its subordinate offices/public sector undertakings. 16.13 With a view to increase the progressive use of Hindi in the subsidiary companies of the Ministry, it has notified "Raigarh Area" of subsidiary company South Eastern Coalfields Ltd. (SECL), Bilaspur (Chhattisgarh) on 12 December, - 159 Ministry of Coal-Annual Report: 2006-07

2006 under Rule 10(4) of Official Language (use for Official purposes of the Union) Rules, 1976. 16.14 The 3rd Sub-Committee of Parliament on Official Language visited the Ministry on 8.5.2006 to oversee the progress of use of Hindi in Official work and to ensure that the provisions of O.L. Act and rules made thereunder are properly complied with and also to suggest the effective implementation of O.L. Act in the official work of the Ministry. The said Sub-Committee also carried out inspection of the Office of Coal Controller, Kolkata on 12.2.2007 with a view to oversee the progress of use of Hindi in that Office.

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

- 160 Ministry of Coal-Annual Report: 2006-07

CHAPTER - 17
PROGRESS OF INFORMATION TECHNOLOGY IMPLEMENTATION
17.1 Over the past few years the dramatic advances made in Information and Communication Technology (ICT) have transformed much of the world into a digitally interconnected community. The predominant drivers of change have been the Internet and the World Wide Web. Both have added a new dimension to the way national and state governments should offer online information and deliver services. Considerable resources, both human and financial, are being committed for launching and perfecting programmes which deliver government information and services online. Such initiatives have also been taken up by Ministry of Coal with the help of NIC to improve administrative operations and enhance Ministry efficiency while encouraging deeper citizen involvement in the governing process. 17.2 The Ministry of Coal has focused on building up the IT infrastructure within the Ministry with the following objectives: i) ii) Improve workflow, work management and monitoring Assist in analyzing, decision-making and scheduling through Management Information Systems (MIS) iii) Storage of data, analysis and handling of databases iv) Provide Graphical User Interface (GUI) based environment v) LAN for sharing the resources among users vi) Networking between Ministry of Coal and constituent units. vii) Simplify dissemination of information to public and make it interactive (e- Governance) viii) Train all personnel in making most of this technology 17.3 The Ministry has provided Windows based PCs to all officers, personal staff and sections. A high speed Local Area Network (LAN) is functioning in the Ministry. All PCs along with servers are put on LAN to provide interconnectivity, Internet facility and access of the applications from the server. The office of this Ministry situated in Lok Nayak Bhawan has also been provided LAN with Internet and Email facilities. 17.4 An IT based Computer Centre, set up by National Informatics Centre (NIC) is operational in the Ministry which is equipped with latest Servers, Client machines for providing Internet and NICNET facilities for local and global connectivity. 17.5 A Web Site of Ministry of Coal in English and Hindi is operational which has been created by the Ministry and is being hosted at NIC. It provides details of organizational setup of the Ministry, its working, subordinate offices, policies, annual reports, publications, statistical data / information on functional key - 161 Ministry of Coal-Annual Report: 2006-07

parameters. The Web Site also contains all the important information in line with Right to Information Act, 2005. Another web site named as "Web of life-Mines Safety" has been created for information related to Mines Safety. A link has been provided in t e main web site for its access. Informatory content has been hosted on h the website for dissemination to the prospective consumers and customers of Coal . Forms have been provided for downloading by the consumers/customers. Latest announcements, advertisements, quotations, Monthly Expenditure reports, Minutes of meetings of Screening Committee are placed on the website regularly. Data is also uploaded on government portals like policy portal, India portal and tenders portal. The Ministry has converted all relevant Acts / Rules / Notifications / Orders etc into electronic form and hosted on the web site for easy access and dissemination to public through the web site. 17.6 The Ministry has taken steps to implement IT in their day-to-day working. Senior officials of the Ministry have been provided with Appointments and Task Monitoring System. The system is used for on-line access of the appointments/engagements of self and also of other officers. The official correspondence has been started being done through E-mail to expedite advance actions. This has been a step forward in implementing "Less Paper" office. 17.7 The official diary and file movement activities have been automated using the Office Procedure Automation Package (OPA) developed by NIC. This has streamlined file and receipt tracking in the Ministry and has become an effective monitoring tool for reducing pendencies at all levels. Searching for any file and receipt is just a click of mouse button now! With the implementation of OPA, Ministry has significantly brought down the pendencies at all levels. 17.8 Pendency Monitoring System on Categorised references like VIP, PMO, RTI & NHRC has been developed which will help to streamline and monitor these references between Ministry and Coal Companies. 17.9 The Ministry has integrated various IT services, facilities and applications through an Intranet based Portal for Ministry of Coal. This portal is a single window based covering a plethora of useful applications like: Coal Notice board, Incumbency MIS, Time-bound files and receipts Monitoring, VIP/MP Reference Monitoring, Tour-Leave Details of Senior Officers, GPF Details, Income Tax Calculation, Payslips generation, Pending Bills Alerts, Leaves Details, Complaint Monitoring, Production-Despatch-Stock MIS and Coal Library. The Portal also provides link to various useful Forms for download, various guidelines, access to applications such as OPA and access to important references. Ministry has also planned to develop and implement various workflow applications to further streamline various work processes to achieve transparency, accountability and efficiency. Bi-lingual interface is provided to various applications to increase the use of Rajbhasha. Bi-lingual forms have been posted on Intracoal so that more Hindi forms are submitted. Recently Learn a Hindi Word Daily feature has been added - 162 Ministry of Coal-Annual Report: 2006-07

which displays a new Hindi word/phrase along with its meaning in English, daily when users log into Intra-Coal web portal. 17.10 Ministry has developed and implemented a system for disbursement of monthly salaries of employees through Electronic Clearing system of RBI. The salaries are transferred to the respective desired accounts of the employees directly from the Bank. 17.11 Board Level Appointments monitoring system has been implemented in the Ministry to on-line monitor the status of vacant posts at Ministry as well as at Coal Company level. The action taken is regularly updated and current position is displayed for senior officers to view. The system is used to access the information on future vacancies to enable initiating appropriate actions in the Ministry in advance. 17.12 Priority list generation system on applications for coal linkages by consumer applicants has been implemented in the Ministry to systematize the information from the applicants under different categories. It helps in generating various reports based on the date of application. The system has helped the Ministry in implementation of a transparent mechanism to prioritise the received applications for linkage of Coal. 17.13 Computerisation of Coal Blocks Allocation Process is under development which will help in maintaining Coal Blocks database and answering various queries related to Allocated Coal Blocks. Application Form for Captive Coal Mining Blocks has been automated to capture all applications systematically and to generate priority list based on key parameters. 17.14 The integrated CoalNET Application software developed on 3 tier architecture with Oracle database at the back end, application server at the middle and the browser at the front end, has been implemented at Coal India Ltd and Subsidiary Headquarters under LAN environment. Implementation of the software in selected areas of subsidiary companies is in progress. On completion of implementation, it will bring uniformity of software across Coal India Ltd. This will facilitate faster availability of data at the subsidiary head quarters. 17.15 SCPC DAMA based V-SAT equipments have been installed at Coal India Ltd. Headquarter, Subsidiary Headquarter and Ministry of Coal. The system is in use for voice, video conferencing and data communication. Subsidiary companies have drawn up its data communication scheme for establishing linkage between its areas and subsidiary headquarters and procurement is in progress. It will facilitate quicker data transfer from subsidiary areas to its headquarter for updation of database and availability of information. ----- x ----- x ----- x -----

- 163 Ministry of Coal-Annual Report: 2006-07

CHAPTER - 18
VIGILANCE ACTIVITIES AND ACHIEVEMENTS
VIGILANCE SET-UP: 18.1 The Ministry of Coal exercises superintendence and supervision over the vigilance administration of 10 Public Sector Undertakings and 1 Autonomous Body under its jurisdiction as well as over the Ministry staff. The vigilance set up of the Ministry is headed by Joint Secretary (Coal)-cum-Chief Vigilance Officer, who is assisted by a Deputy Secretary, an Under Secretary and a Section Officer. The vigilance wings of the Coal India Limited & its subsidiaries and Neyveli Lignite Corporation (NLC) are headed by full time Chief Vigilance Officers. At present, CVOs of NLC, CCL and WCL are holding additional charge of the post of CVO in CIL, CMPDIL and SECL respectively. The Vigilance wing of the Coal Mines Provident Fund Organisation (CMPFO) is headed by a part-time CVO. These units have been structured in conformity with the guidelines of the Central Vigilance Commission and commensurate with the organisational requirements. The Vigilance set-up of CIL, its subsidiaries, NLC and CMPFO is given in Annexure-18A. 18.2. Being the watch-dog of coal and lignite PSUs, the Ministry pays due attention to streamlining the procedures and practices prevailing in these organisations so as to make their working more transparent and systematic, thus minimizing the chances of corruption. 18.3 The Vigilance Department of CIL also coordinates the activities of the subsidiary vigilance wings and also acts as a nodal agency for compiling information/statistics, etc. for the Ministry of Coal and the Central Vigilance Commission. The Vigilance Departments also do liaison with the Central Bureau of Investigation and other anti-corruption agencies and advise the Chief Executives of coal and lignite companies on all aspects of preventive and punitive vigilance. VIGILANCE AWARENESS WEEK: 18.4 A Vigilance Awareness week was observed from 6th to 10th November, 2006 in the Ministry of Coal, CIL & its subsidiary companies, NLC and CMPFO. As a part of observance, a pledge was administered to all public servants for maintenance of integrity, transparency and eradication of corruption from all walks of life. Banners/posters on Vigilance Awareness Week were displayed. 18.5 An interactive session titled Vigilance as a Management Tool for Enhancing Efficiency and Ensuring Transparency was organized by Coal India Limited (Hqrs.), Kolkata. The session was chaired by the Chairman, CIL and was attended - 164 Ministry of Coal-Annual Report: 2006-07

by Director (Finance), Director (Marketing), Director (P&IR) and officers from the different departments. During the session, Chairman, CIL observed that a cautious approach needs to be adopted in vigilance activity so that officers do not get unduly demoralized which ultimately affects the work performance. The Chairman further added that some officers become over cautious, which results in delays in decision making process. There is need for regular and closer interaction between the vigilance and operational staff to remove such scare in the greater interest of the company. 18.6 In BCCL, a two days seminar was organized on 7th & 8th November, 2006 on different topics viz. Corruption amongst Public Servants A rising trend, Coal Sale Policy through e-marketing, Role of DA, IA & PO in Disciplinary Proceedings, Role of liberalization in reducing corruption, etc. An essay competition for Executives on Right to Information - a tool for combating corruption and for Non-executives on Cumbrance procedure are the main stay of corruption was also organized on 09.11.2006. During the Awareness Week a debate and declamation competition was also held at DAV School, Koyla Nagar, Dhanbad on 08.11.2006 under the aegis of BCCL. Debate was organized for the Sr. group on VARTMAN PARIVESH MEIN NAITIK UNNATI HE ECMAATRA VIKALP, and the topic of declamation competition was BHRASTRACHAR HATAO DESH BACHAO for the Jr. group. Prizes were given to six best participants in the Sr. group and to three best participants in the Jr. group by BCCL. At the end of debate and declamation, all participants were given consolation prizes. 18.7 In WCL, interactive workshop was held on 6th & 10th November 2006 in the presence of the Functional Directors, CVO, respective Heads of Departments and clients/customers of different Departments. At the outset, the concerned HODs explained to the customers the practices and procedures being followed by their Departments. They also explained the various systems and procedures, which have been put in place to facilitate both the WCL management as well as customers. The clients/customers were also requested to express their grievances/suggestions, if any. A team of officers from the Vigilance Department had visited each of the areas of WCL. These officers explained to the Suppliers/Customers, the complaint handling policy, avenues available for redressal of grievances etc. 18.8 In NCL, the Vigilance Awareness Week commenced with the administration of pledge by CMD/NCL to the employees on 06.11.2006. Various competitions were organized during the week. On 07.11.2006, an essay competition on the topic Corruption is the root cause of our poverty was conducted for employees at NCL/HQ. A NCL Consumers Conclave was organized on 09.11.2006 to have a free and frank interaction with the consumers. 18.9 In CCL, the Week started with taking of pledge by all the employees. Importance of celebrating Vigilance Awareness Week was explained to the - 165 Ministry of Coal-Annual Report: 2006-07

employees of HQ by the CMD, CVO, D(P), D(F) and D(T/Opn.), CCL. Banners and posters containing thought- provoking slogans were displayed in all the units/offices. 18.10 In MCL, the observance of the Week was started with the administration of pledge by CMD, MCL to the officers and staff on 06.11.2006. On this occasion, CMD, MCL released a Vigilance Bulletin brought out by the Vigilance Department of MCL containing messages, case studies and important guidelines/circulars of CVC. During the week, five workshops were conducted covering all the Area/Units of the company. As a part of the Week, elocution contests were also held in the schools/colleges nearby the company headquarters and Areas on anti-corruption theme and prizes were distributed. 18.11 In ECL, the Week was dedicated to presentation/ deliberations/ symposiums on different issues such as e-Procurement, Role of Liberalization in reducing corruption, Behind Every corrupt man, there is a greedy family, National Costs of Corruption, Values in Public Service-A Vigilance Approach, Meet your Consumers, Role of CBI in combating corruption, etc. 18.12 In SECL, five vigilance workshops concerning the consumer awareness and redressal of grievances of the customers were organized during the vigilance awareness week. 18.13 In Neyveli Lignite Corporation, the Vigilance Awareness Week presided over by the CMD/NLC took off in the presence of the chief guest Ms. S. Vimala, Director/Tamilnadu State Judicial Academy, alongwith the Directors of NLC. On 2nd day of the Week, a function was presided over by the Director/P&P, NLC and the chief guest was Dr. G.M. Ranjith Cecil, Assistant Director, Forensic Science Department, Chennai. Dr. Cecil enlightened the audience on how the Forensic Department functions in combating corruption, with display of numerous slides related to traps, lie detector, cyber crimes, brain mapping, etc. Throughout the week joint inspections by the vigilance officials alongwith the concerned unit officials were conducted at various units of NLC. PREVENTIVE VIGILANCE: 18.14 In order to bring transparency, uniformity and streamlining of procedures and practices in sensitive areas of working of PSUs, the following measures were taken for system improvement:i) ii) iii) In pursuance of directives from CVC, all the CIL Subsidiary Companies have implemented publication/uploading of tender documents in the website. Quarterly review of disciplinary proceedings pending for more than one year. Identification of sensitive departments and transfer of personnel occupying the sensitive posts for a long period.

- 166 Ministry of Coal-Annual Report: 2006-07

iv) v) vi)

Surprise checks to unearth intentional lapses, manipulations, mal-practices, dereliction of duty etc. Workshops were conducted by CIL Vigilance and guidelines framed/revised with a view to improving preventive vigilance. Vigilance inspections in corruption prone areas of the industry such as the diesel dispensing units in the open cast mines, explosive consumption, civil works, road sale of coal and procurement of spares have been intensified. Transportation job of coal and sand was being operated through SOR contract without tendering in ECL. This has been discontinued and the DISCOUNT BIDDING SYSTEM has been introduced. In WCL instructions have been issued that whenever the work order is issued from the Areas, it should incorporate the penalty clause so that in case of premature failure of repaired HEMM, the penalty may be imposed on the party if it fails to repair the same within the stipulated time limit. During the examination of a civil engineering tender in NCL, it was noticed that the same person was representing different firms in the same type of tenders. As a preventive vigilance measure, instructions have been issued so as to ensure that a particular person is not allowed to represent two or more firms by way of power of attorney and care must be taken to include this aspect in the NITs. MCL management has been advised to issue necessary instructions to the projects to the effect that the project should not execute such workshop jobs contractually for which facility is available departmentally and whenever contractual execution of such job is unavoidable, the same should be done only after obtaining Inability Certificate from the companys workshop. As per CVCs directives regarding improving transperancy in the tendering process, the NLC management issued a circular directing all concerned to meticulously follow the rules in this regard by publishing the details of application for registration of contractors/ suppliers/ consultant/ vendors and any other connected matter of purchases and contracts on the website. Guidelines are issued from time to time in different branches of coal companies to bring in more transparency and bring down areas of discretion or patronage.

vii)

viii)

ix)

x)

xi)

xii)

18.15 An exercise has been carried out in the Ministry also to identify sensitive positions. Action has been initiated to rotate the officials working in sensitive posts.

- 167 Ministry of Coal-Annual Report: 2006-07

SURVEILLANCE AND DETECTION: 18.16 All PSUs under the administrative control of Ministry of Coal identify and prepare the Agreed List of Suspected Officers and List of Officers of Gazetted Status of Doubtful Integrity in consultation with the CBI. 18.17 The pending cases pertaining to investigations, penalty proceedings etc. of CIL (Hqrs.) as well as the Subsidiary Companies are separately reviewed by CVO, CIL every month with the officers of the Vigilance Division, CIL(Hqrs.) and the CVOs of CIL Subsidiaries respectively. This is being done in order to reduce the pendency of such cases. 18.18 Vigilance Department, ECL has carried out an intensive study at Mugma Area under ECL in compliance of the Central Vigilance Commissions advice. During this study, six number of cases have been registered with issuance of major/minor penalty chargesheets to 27 nos of executives/non-executives and 02 more cases are under process. 18.19 Vigilance Department of BCCL conducted 39 surprise/test checks in sensitive areas out of which 03 resulted in regular investigation. Out of the said 03, one case resulted in initiation of major penalty proceedings. 18.20 In a case investigated at the level of CIL Vigilance in respect of a contract work of one of the areas of MCL, it was found that an excess payment of Rs.1.92 crore on account of price fall clause was made to the contractor besides the excess payment on account of penalty for short fall in production. MCL Vigilance followed up the matter and an amount of Rs.1.45 crore has been deducted from the bills of the said contractor. Further recovery/deduction has been stopped due to a directive issued by the Honble High Court of Orissa in response to a Writ Petition filed by the contractor. The management is taking necessary action for removal of injunction granted by the court so that complete recovery of loss can be made from the contractor. 18.21 As a result of an investigation conducted by the Vigilance Department of WCL into the execution of the work of OB removal at its Chhinda Open Cast Mine, an amount of Rs.1,08,88,616.00 has been recovered from the contractor for inflated measurement. Apart from aforesaid recovery, major penalty proceedings have been initiated against 03 senior officers and minor penalty proceedings against 07 other executives. Two senior officers have also been warned in connection with this case. 18.22 In NLC, 90 surprise checks were done out of which 58 have resulted in vigilance cases. 18.23 In respect of contract awarded to M/s MECON related to Lignite Handling System at TPS-II Expansion, NLC Vigilance noticed huge difference in the awarded contract value and the estimated cost. Based on the recommendation of NLC Vigilance Cell, CTE has taken up an intensive examination of the matter.

- 168 Ministry of Coal-Annual Report: 2006-07

PUNITIVE ACTION: 18.24 A brief of the cases taken up for investigation, departmental inquiry, cases in which penalty was imposed, number of officials placed under suspension, number of regular cases registered by CBI and number of officials transferred from sensitive posts by the coal companies, NLC and CMPF is given in Annexure-18B. IMPORTANT ACHIEVEMENTS: 18.25 Some of the important achievements of the Vigilance Departments of Public Sector Undertakings of the Ministry of Coal during the year 2006-2007 (upto December 2006) were as follows: (i) Keeping in view the difficulties encountered during procurement of explosives for the year 2005-06, the existing procurement policy has been revised by CIL management. The objective was to ensure continuity of supply, to prevent cartelisation of suppliers, to bring more transparency and equity in distribution system and to ensure quality. CIL Vigilance effectively and significantly contributed in drawing up the new policy and also advised from time to time during tendering for a successful conclusion. As a result of this improved policy, the quoted prices for all the items were found to be much less than the LPP. It is expected that the over all savings will be to the tune of Rs.120.00 crore. (ii) On the advice of ECL Vigilance, ECL management has decided to go for e procurement in collaboration with DGS&D. (iii) CCL Vigilance has adopted a new strategy of organizing seminars/workshops to educate the officials of CCL. During current year, one seminar on Disciplinary Proceedings and one workshop on Contractual coal transportation in CCL were organized. (iv) In WCL, prosecution sanctions whenever sought by CBI were arranged and sent within the same month in which such communications were received. (v) Consequent upon a vigilance investigation, MCL Vigilance came to know that the caste certificate submitted by 05 probationers were forged and fabricated. Services of these employees were terminated. Similarly, 04 employees have been dismissed from the services of the company following the revealation that they have secured employment by furnishing false information regarding age / being land oustee. (vi) Vigilance Department of CMPDIL has started surprise inspection/ verification in respect of contractual jobs awarded during the year 2006-07 in all the regional institutes. It is expected that companys expenditure would be reduced in the coming financial year and standard rules/procedures would be followed while awarding the contracts.

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(vii) As per the guidelines of CVC, a separate Disciplinary Proceedings Monitoring Cell was formed in NLC to monitor the disciplinary cases and to complete them within the time frame set out by the CVC. ----- x ----- x ----- x -----

- 170 Ministry of Coal-Annual Report: 2006-07

CHAPTER - 19
GENDER ISSUES
WOMEN EMPLOYEES STRENGTH 19.1 The strength of women employees in Ministry of Coal is 25. Coal India provides employment to around 29,494 women (31-12-2006). This constitutes about 6.66% of total manpower. The number of women executives is around 504 and skilled/monthly rated women employees are 6710 the rest belong to unskilled/daily rated category. One of the reasons for low ratio of women as compared to men in Coal India is the nature of the profession itself. Coal mining by its intrinsic nature is an arduous and hazardous task. Moreover there is a regulation preventing women employees from entering the underground mines. Most of the women executives are in administrative disciplines like personnel, finance. 19.2 The directive principles of State Policy stipulates inter alia provision of adequate means of livelihood for men and women, equal pay for equal work, protection of health of workers. 19.3 In the economic and social fields a small section of women emerged as a vocal and successful lot with determination and sprit. Spheres of womens earning activity are no longer limited to teaching, nursing etc. Whether in science, technology, advertising, architecture or any other man-dominated profession, they are a factor to be reckoned with. Women have significantly increased their share in managerial jobs and they have frequently matched or even exceeded their male counterparts in terms of formal qualification and technical know-how. WOMEN IN PUBLIC SECTOR - COAL INDIA LIMITED 19.4 It was with the intention of pursuing the objectives of Directive Principle of State Policy, the Forum of Women of Public Sector (WIPS) was formed. 19.5 A forum of women in Public Sector (WIPS) was established on 12th February, 1990 under the aegis of Standing Conference of Public Enterprises (SCOPE). The idea of "WIPS" was conceived when the Bureau of Public Enterprises in collaboration with SCOPE organised a National Convention of women in Public Sector in October 1989, in New Delhi with a view to analyse the problems of women in the Indian context. At this convention, it was decided to create a national network, a support system that would help women employees to harness their full potential and to enhance their contribution in the national development process in general and public enterprises in particular.

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19.6 This forum operates at a national level through its Central apex body at New Delhi and functions through four regional centres at Mumbai, Chennai, Kolkata and New Delhi. 19.7 The membership of this forum is open to all women employees of public sector enterprises on a nominal fee of Rs.25/- + Rs.5/- for admission for a block of 2 years. Class IV employees can be its life members on payment of RS.5/- only. Aims and objectives of this forum are: To promote growth and development of women in public sector. To assist the public undertaking in optimising the full potential in women employees. To play a catalytic role in improving the status of women in and around public undertakings. 19.8 With a view to have a well co-ordinated action at enterprise/regional units and an effective network with the regional chapters and Apex Body, WIPS Cells are set up in each enterprise headed by co-ordinators nominated by respective enterprise. The co-ordinator of each cell keeps liaison with the respective region and apprises them of the activities to mobilise public sector units to become members of the forum, as also to encourage lady employees of their units to create WIPS Cells. 19.9 The forum celebrates WIPS Day every year on 12th February by organising a National Meet which is attended by delegates from all over India, nominated by their respective companies. WELFARE SCHEMES FOR WOMEN IN COAL INDIA 19.10 The Mines Creche Rules 1946 aim at providing healthy growth and welfare of children of women employees. There are provisions for special care and protection of children up to the age of six years. The Mine Act and the Mines Creches Rules prescribe detailed norm of women employees, number of staff, wellventilated rooms as per prescribed specifications, toilets, medical facilities and medical check-up of children, proper drinking water facilities and proper diet for children. Special emphasis has been given on cleanliness to safeguard the health of the children. 19.11 The provisions of Maternity Benefit Act and Equal Remuneration Act are being implemented benefiting the women employees of the Company. TRAINING 19.12 A major thrust of the CIL and its subsidiary companies is on the skill up-gradation of female employees. Female employees are given training on jobs like : Shovel/Dumper/Excavator/ Pay-loader operation Haulage/Fan/Pump operation Lathe machine/Moulder/Driller Switch Board Attendance Armature winding Security - 172 Ministry of Coal-Annual Report: 2006-07

19.13 Female employees are also employed on other jobs, as para-medical staff, doctors, computer professionals, security personnel etc. 19.14 CIL has established nurses training institutes where training is imparted to the trainee nurses to find opportunity in or around the industry. 19.15 The Mahila Mondals, Mahila Samity and other such forums are working in different units/establishments' and coalfield areas to look after the Welfare of female employees and female spouses/female dependents. They organise symposiums, seminars, training programme and cultural activities from time to time for women. 19.16 Women employees take active part in the Sports events organised by CIL. Ms. Sumita Laha, has won laurels for the country in power lifting in various international meets. 19.17 As per the Wage Agreement, female dependant of the employee who dies while in service is provided with employment or monetary compensation. NATIONAL COMMISSION FOR WOMEN 19.18 The National Commission for Women was constituted vide the Women Act, 1996. The major responsibility assigned to this Commission is to review the safeguards provided for women under the constitution and other laws and make recommendation for making amendment to remove all inadequacies and shortcomings in those safeguards. It is also required to look into complaints relating to deprivation of women rights or non-implementation of laws enacted to provide protection to women and also to achieve the objective of equality and development. 19.19 The Commission has been vested with all powers of a Civil Court trying a suit. Based on the guidelines of National Commission for Women and GOI a Women's Cell has been constituted to look into the complaints of women employees regarding discrimination and sexual harassment. 19.20 In accordance with the judgement by the Hon'ble Supreme Court in the case of Vishakha and others - Vs- State of Rajasthan, CIL and its subsidiaries have made amendment in the service rules/standing orders of employees. WOMEN IN PUBLIC SECTOR IN NEYVELI LIGNITE CORPORATION LIMITED 19.21 WOMEN EMPLOYEES STRENGTH: Total strength of women employees in NLC as on 31.12.2006 is 1519 including 217 executives. 19.22 ACTION ON GUIDELINES BY NATIONAL COMMISSION FOR WOMEN: A Committee consisting of senior women executives including a doctor was formed to protect women employees from sexual harassment at work place. For the benefit of the working women employees Anbalaya a well-equipped creech with trained personnel is in operation. - 173 Ministry of Coal-Annual Report: 2006-07

19.23 TRAINING & EMPLOYEES.

DEVELOPMENT

ACTIVITIES

FOR

WOMEN

So far 347 women employees have been trained by imparting in house training. 33 women employees have been sent for training to various outside institutions to gain advanced knowledge on latest science & technology. Further women employees grievances are redressed by way of skilful counselling. The NLC chapter of WIPs has orgranised and conducted several sports, cultural, group discussions for the benefit of women employees 19.24 SCHEME DEATH RELIEF FUND Out of this scheme 45 dependent of deceased employees got the financial assistance of totaling Rs.1.68 crore. 19.25 FAMILY RELIEF The family relief is paid to around 250 dependants every year, and the financial out go on account of the scheme works out to around Rs.7.31 lakh.

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

- 174 Ministry of Coal-Annual Report: 2006-07

CHAPTER 20
ACTION TAKEN NOTES ON C&AGs OF 2006
(i) Audit Report No.8 of 2006 (Chapter-III) (Performance review on Project Implementation, Performance of HEMM, Manpower Analysis, Fund Management and Environmental Planning Mahanadi Coalfields Limited) Audit Para No. Audit observations Action taken report by companies/MOC Vetting remarks of audit

Audit Report The company could not complete the No.8 of 2006 implementation of advance action (Chapter-III plan of seven projects even after time over run of one to 10 years leading to cost overrun of Rs.66.29 crore as on March 2005. Due to resistance from land oustees, the Company could not produce coal valued at Rs.118.25 crore during 2004-05 in six projects of Talcher Coalfields.

Project reports costing more than Rs.100 crores are sanctioned in two phases. i) Advance Action Proposal (AAP) ii) Final Project Report.

Capital Expenditure provision against Advance Action Proposal was earlier restricted upto Rs.10 crores vide circular dated 7th June 1989 of department of Coal for all coal projects costing above Rs.50.0 Crore. Under this circular, seven AAPs of MCL were approved by Ministry of Coal (MoC). Subsequently, the capital provision under AAP was enhanced from Rs.10.0 Cr. To Rs.20.0 Cr vide OM No.1(5) PF II /96 dated 6.8.1997 of Ministry of Finance. So MCL applied for sanction of additional capital for all the 07 AAPs - 175
Ministry of Coal-Annual Report: 2006-07

under this revised totaling Rs.66.29 Cr. Out of these seven AAPs, additional capital for 02 AAPs for Rs.18.11 were sanctioned by MoC. So the additional capital applied for / sanctioned was not due to consequential time over run but in view of the revised capital provision under AAP, which is an advance paid against that project. MCL has already replied to audit stating that the reduced rate in CCL were not a restrictive parameter for tender process for it. The Company further stated that the Industrial Engineering Department (IED) had conducted a study for ascertaining the operating cost of surface miner and was under process of finding out a workable value. Certainly the Company has manpower policy. The manpower of Company of 21,298 in March, 2005 has been reduced to 20,876 as on 01.04.06. Recruitment of employees is based on certain rules. Employment to dependent is considered as per the true spirit of provision of NCWA. Employment against land acquisition is based on the decision of Govt. of Orissa. Company is always trying to compensate the land loser with monetary compensation, but there are very few cases coming forward for this facility. They all demand employment. - 176
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The company incurred avoidable extra expenditure of Rs.4.46 crore in 2002-03 by awarding the contract of hiring of surface miner at a higher rate.

There was no scientific assessment of manpower requirement. The Company had a workforce of 21298 out of which 66 per cent was in unskilled category at the end of March 2005. The Company's control on overtime remained ineffective and despite the negative growth in OB removal, there was increase in overtime by Rs.8.73 crore and Rs.13.96 crore in 2003-04 and 200405 respectively.

Outside recruitment has been statutory requirement, Paramedical Heavy Earth Moving Machines. employment are not available manpower strength.

made against the staff and to operate Such categories of within the existing

The Company has taken a policy decision to provide employment as a Cat-I General Mazdoor and if candidates are matriculate and in possession of HMV licence are considered for HEMM training at CWS, Talcher and CWS, Ib. After training they are posted for operation and maintenance of the machines. Below matriculate candidates are being posted in UG mines to meet the production and statutory requirement. It is also pertinent to mention that every year nearly 350 to 400 employees are retiring mostly in skilled and vital categories. The Company is very keen to make all necessary efforts to match the requirement through training. The Company has already undertaken the exercise of recruitment of Statutory Personnel such as Mining Sirdar, Jr. Overman, and Dy. Surveyor. Selected candidates have been posted in the Underground mines excepting those whose caste certificates have been sent to the State authorities for verification. A good number of employees have been transferred from Talcher Coalfields to Ib Coalfields to meet the - 177
Ministry of Coal-Annual Report: 2006-07

requirement at Orient Area and Basundhara Area. It may be noted that after mechanization in the UG mines, a large number of piece rated workers were compelled to remain idle, it was the Companys thought that they should be used in multi-skilled jobs in Underground mines after their proper training, they are put on jobs. Various steps have been taken from time to time to cut the increase of OT. A limit has been fixed for all the Areas. Training is also strengthened to make the new recruitees to match the requirement. In view of the above, it is reiterated that management of MCL has been taking all possible efforts to rationalize the manpower for their optimum utilization. Despite holding huge surplus fund ranging between Rs.29.37 crore and Rs.97.10 crore per month from April 2002 to February 2004, the Company did not invest the same with Coal India Limited (CIL) and lost an interest of Rs.4.04 crore. MCL has stated that not all the amount parked with Coal India Ltd is interest-bearing: there are certain types of funds that are non-interest bearing too. In 2002-03, Rs.387.13 Crores deposited with Coal India Ltd was non-interest bearing. Similarly, in 2003-04, Rs.360.38 crore was non-interest bearing. Secondly, on an average, a balance Rs.20.00 crore is required to be kept at the end of every month for salaries & wages, POL, etc. and statutory liabilities. Any delay in meeting these payments would adversely and seriously affect the business interests of the Company and therefore, money was kept in nationalized banks to meet the exigencies of important payments. Besides, parking money with Coal India Ltd at the end of the month and withdrawing it - 178

Ministry of Coal-Annual Report: 2006-07

immediately in the beginning of the next month would bear no interest. Thirdly, during the period under question viz., April 2002-February, 2004, new Projects like Bhubaneswari OCP (10 Mil.Ton), Kulda OCP (10 Mil.Ton) and Kaniha OCP (3.5 Mil.Ton) were about to be cleared by PIB and CCEA. Therefore additional funds were required to be kept to augment the production of coal and OB by purchasing new equipments. Fourthly, capital expenditures were to be met out of Companys own funds. Therefore funds were kept to make payment for the acquisition of land, purchase of equipments, etc. as per approved Capital Budget, and other contingent revenue expenditure which could not be foreseen. Fifthly, Company has been progressing by both opening new Projects and expanding the existing projects to increase the production. Year after year, production of the Company has been steadily increasing as may be seen from the following table:
Year Coal Production in Mil.Tons 19902000 43.554 2000-01 44.803 2001-02 47.805 200203 52.229 200304 60.048

To meet the expansion of the Company, funds were required to be kept for immediate disposal. Had funds been parked for the sake of earning some interest, liquidity position of the Company would have - 179
Ministry of Coal-Annual Report: 2006-07

suffered, affecting in turn the rapid growth of the Company. After having carefully monitored the developments of the Company, negotiations were held with our Banks and the system of parking of funds with them to earn some interest could be introduced only from March, 2004. Therefore, it can not be construed that prior to this period there was loss of interest by not parking the funds. The Company could not recover loading charges of Rs.17.34 crore up to March 2005 in the absence of any agreement with the customers. Further, crushing charges of Rs.8.12 crore could not be recovered from customers in the absence of a notification for revision of prices of coal produced through surface miner for the period from June 2000 to January 2001. It has been mentioned in the audit objection that the management accepted the audit observation. The company has a lready replied to the audit objection stating that notification for levying sizing charges for (-) 100 mm coal was issued in February, 2001 and charges were levied from that date. Factors such as customers reluctance, market competition, change in adoption of methods and technologies, etc. affected the decision for revision of price earlier. The ATR of the company is being processed in the Ministry.

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(ii)

Audit Report No.8 of 2006 (Chapter-IV) Neyveli Lignite Corporation Limited Performance review on Performance of Bucket Wheel Excavators Audit Para No. Audit Report No.8 of 2006 (ChapterIV) Audit Observation Action Taken Report by Companies /MOC Vetting Remarks of Audit

The Hanumantha Rao Committee appointed by the Government of India determined the norms in 1983 for operation of Bucket Wheel Excavators based on the data available for the period 1969 to 1982. The Company subsequently procured new Bucket Wheel Excavators with upgraded technology but adopted the norms already fixed for the old machines and thus ignored the technical superiority, which enhanced the designed capacities of the Bucket Wheel Excavators. Neither the Hanumantha Rao Committee nor the Corporation fixed achievable capacities for the Bucket Wheel Excavators (BWEs) deployed in the lignite bench / bottom bench.

Even though the excavators procured after 1982 had advanced technical features, the theoretical capacity guaranteed by the manufacturers for these BWEs (as per their operation manuals) are more or less same that adopted by HRC. The advanced technical features aid operational flexibilities, tackling various mining conditions, superior components and bigger cut blocks while retaining the vital parameters, determining output capacities. The achievements were in line with capacities guranteed/determined and hence the same capacities are being adopted.

HRC had fixed norms for 700 L. BWEs for extraction of lignite from lignite system. In Page No.14 of HRC report, it is clearly explained about the rate of lignite output in lignite system. The lignite system utilization hours is dependent on the requirement of the lignite for down stream units consumptions, lignite exposure availability etc. The lignite seams in NLC is lying above the aquifer under pressure and for extracting lignite below the floor level, buckets reversal has to be carried out and also - 181

Ministry of Coal-Annual Report: 2006-07

the rate of excavation has to be restricted due to undulations in the bottom of lignite seam. However, Mine-I and IA was above to satisfy the downstream units requirements. In addition to its linked units, lignite was also supplied to TS-II. Lignite exposure is dependent on the lignite to overburden ratio, movement of benches above lignite, thickness of lignite etc. While fixing MOU target these factors are taken into account. Depending on the field requirement, the downstream requirement, availability of machines, excavation rate requirement etc., the machines are deployed in various benches. During the review meetings the actual are reviewed with the target. The norms adopted by the audit are based on the bench factors of 0.7 for the lignite bench. With the present operating conditions obtaining in Mine-II viz. semi-confined & confined aquifers, narrower cut blocks due to non-availability of land, 2 BWEs working in a single block etc. very similar to or worse than the bottom bench conditions, the bench factor to be adopted has to be that of the bottom bench only viz. 0.4 and hence the rates of output are 810 & 1300 T/Hr. for 700 & 1400 BWEs. The BWEs worked for more hours than norms but the output rate was lower than the achievable capacity resulting in short removal of overburden of 21.55 million cubic metres and short
Ministry of Coal-Annual Report: 2006-07

Mine I & Expansion was planned to produce 10.5 million tonnes of lignite per annum and the feasibility report was prepared accordingly. This project was evaluated by Planning Commission, Inter ministerial group, Public Investment Board and was approved by - 182

extraction of 12.22 MT lignite in Mine-I and II during the five-year period ending March 2005.

CCEA after thoroughly analyzing the mining scheme and related equipment configuration. Hence the 100% capacity of the mine is 10.5 million tonnes only and not 13.96 million tones as assumed by audit. The feasibility report is based on the geological conditions assumed depending on the boreholes data emanated from boreholes, which were drilled 400 meters apart. However when actual mining takes place the geological and strata conditions vary from the assumptions made in ER calling for suitable readjustment of mining scheme while the annual output the machines as per F.R. was kept as the targets except in the years where major overhaul/modification are taken up. Readjustments were done in working hours and output in the long term interest of upkeep of the machines operating in hard strata, which was not contemplated in F.R. Also in the case of SME system, one bench is dependent on the other bench movement. In other words the movement of benches below either top, middle, bottom or lignite will depend on the movement of surface bench. Any strain on the surface bench machine making it not available will have a cascading effect on the benches below them. Similarly the lignite system utilization hours is dependent on the requirement of lignite for down stream units consumptions, exposure availability etc. Hence the arithmetic calculations of number of hours worked with the achievable capacity are not realistic. - 183

Ministry of Coal-Annual Report: 2006-07

The feasibility report of Ml including expansion has been prepared based on the average OB to lignite ratio concept. The assumption is OB : Lig ratio is 5.5 Cu.m/T. is on an average and is likely to vary over the period of life of the unit. This shows that some of the years the ratio will be favourable and some of the years, the ratio will be adverse. This shows that whenever the ratio is favorable Ml after expansion, would be able to give more output than 10.5 MTPA or otherwise during the period major works for the excavators can be carried out, it the machine condition warrants a major or minor overhaul. In view of the geo-mining conditions like hard strata, presence of acquifer etc., for the life of the mine capacity utilization of 85 to 90% seems to be the acceptable norm. hence the questions of likely production on some assumption from Ml is not correct. The norm fixed by Hanumantha Rao Committee has been considered for fixing the MOU targets after taking in to account the operating conditions, OB to Lignite Ratio, availability of machines, etc. Any computation away from the accepted MOU targets may not be correct and the assumed loss is not acceptable. Hence, the observation of the audit that there was shortfall in annual average lignite production does not appear to be correct. - 184
Ministry of Coal-Annual Report: 2006-07

There was excess consumption of power and teeth in operating the Bucket Wheel Excavators amounting to Rs.17.73 crore and Rs.10.43 crore in Mine-I and II respectively during the period under review.

Mine I The observation of the audit is not correct because the length of conveyors lift requirement to convey the excavated material, strata condition, lift, geo-mining, amount of water to be pumped, length & lift required for pumping, geo-hydrological conditions etc. play a major role in consumption of power. Mine II The norm fixed for power consumption was only a broad objective and that it depends on mine movement, quantum of material (OB & Lig.) handled and pumping lift involved. Audit did not consider other parameters contributing to the power consumption such as OB : Lignite working ratio, Mine depth (increase in lift), and water pumping, but only single parameter i.e. lignite output alone is considered for evaluation. Hence analysis made based on single parameter will not reveal the real situation and the conclusion also will be misleading. Further as detailed above, the Mine depth (increase in lift), OB:Lignite working ratio and water pumping varies from year to year. Hence the norms can be fixed on broad objective only and while evaluation various other parameters such as OB: Lignite - 185

Ministry of Coal-Annual Report: 2006-07

working ratio, Mine depth (increase in lift), method of loading on conveyors and water pumping are to be considered. The excess power consumption, as referred by the audit, is therefore, only for the excavation of additional Overburden for the given lignite output and to transport the materials from the increasing depth on mine. In this regard, it may be noted that even a small band of hard stone will affect the consumption pattern of teeth to a larger extent. The strata condition is being mapped by the drilling of the boreholes at closer intervals which also involves higher expenditure. Based on the report of the drilling done for blasting purpose or based on the drilling done during exploration, the hardness zone is being logged and mapped. During a particular period, the time an excavating equipment will be deployed in the hard strata is very difficult to project. Repeated occurrence of hard boulders in the strata matters greatly in addition to the time of contact. For example even one rotation of the Bucket Wheel in the hard zone, courses damage to all the teeth in the buckets. This is more, likely to happen in the night time because after meeting the hard zone, by the buckets (by observing the higher current drawn by the BWE motor) only the hard strata encountered will be known to the Bucket Wheel operator. - 186
Ministry of Coal-Annual Report: 2006-07

Hence in such area it will be very difficult to fix a norm for teeth. Recently mining is carried out in very highly varying strata conditions and it is difficult to project and to adhere to norm fixed. As may be observed there is a wide variation in the norms for explosives also. Under these circumstances, it is impractical to calculate and arrive at uniform cutting resistances and technical specification also to design teeth accordingly. By the past experiences, many studies and modifications had been carried to encounter the different strata conditions viz. by increasing number of teeth, increasing the cutting lip length, changing the teeth profile and teeth angle. Further strengthening in teeth design would affect buckets, bucket wheel body, hollow shaft bearings, bucket wheel gearbox and bucket wheel boom pivot structure. Hence it is reiterated that is very difficult to frame up different specifications for teeth to encounter different strata conditions in mining area. The stoppages under the planned and breakdown categories exceeded the norms and led to short extraction of 24.27 MT lignite during the five-year period ending March 2005. Operation of one full system is being monitored by fixing various parameters such as break down stoppages due to SME, Conveyor & Electrical. Ceiling hours for each equipment will be based on condition of the equipment. In other words hours are allocated for stoppages and is also being reviewed monthly. The stoppages were in excess of the overall ceiling - 187
Ministry of Coal-Annual Report: 2006-07

fixed by HRC only in the case of 1400 L BWEs during the years 2003-04 and 2004-05. During this period MAN BWEs were stopped for boom-head modification works and hence the stoppages were more. As stated earlier the excess stoppages in one category (planned or breakdown) was compensated by curtailing stoppages under others, maintaining the total stoppages within the total ceiling fixed by HRC. The ATR of the company is being processed in the Ministry.

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(iii) Audit Report No.12 of 2006 : Audit Audit Observation Para No. Para Failure in arranging transportation for cheaper No.5.1.1 'C' grade coal and continued injudicious use of steel grade coal for boiler consumption resulted in revenue loss of Rs.51.20 lakh and wastage of resources in Bharat Coking Coal Limited. Action Taken Report by Companies /MOC Vetting Remarks of Audit

Coal Mines of Chanch Victoria Area are situated in two different States viz West Bengal and Jharkhand. Steel grade Coal is being produced at Begunia Colliery situated in the states of West Bengal and C grade coal is produced at Basantimata and Dahibari Colliery situated in the states of Jharkhand. As such C grade coal, for the purpose of boiler consumption at Begunia Colliery has to be brought from Dahibari, Basantimata colliery crossing the Brakar river, inter state border and covering a distance of about 30 KM on one side. This transportation involving inter-state movement of goods is associated with various difficulties & is time consuming. Due to non-availability of infrastructure like tippers and drivers, departmental transportation of C grade coal from the mines situated in the Jharkhand side of the Area was not feasible. Contractors were also not willing to transport such a small quantity (17.5 MT per day) at the prevailing distance slab rate due to the difficulties associated with the inter state movement of goods as mentioned above. Having this in view, the management went for tendering for the purpose of - 189

Ministry of Coal-Annual Report: 2006-07

arriving at a reasonable rate for transportation of C grade coal. But the rate quoted by the contractor was abnormally high which the management could not accept/finalise. The tender was ultimately cancelled. In this situation management had no option but to continue operation of boiler with steel grade coal otherwise production would have stopped. Further, from the cost consideration also, the transportation of C grade coal is not economical. Finally with the improvement in the availability of tippers, after suspension of work at Victoria West colliery, departmental transportation of C grade coal for the purpose of boiler consumption was started from April 2004. Thus, despite cost advantage use of steel grade coal in boiler has finally been discontinued from April 2004 keeping the larger national interest in view. The ATR of the company is being processed in the Ministry.

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Ministry of Coal-Annual Report: 2006-07

(iv) Audit Report No.12 of 2006 : Audit Para No. Para No.5.2.1 Audit Observation Action Taken Report by Companies /MOC Vetting Remarks of Audit The recovery of liquidated damages of Rs.31.98 crore from the contractor (BHEL), due to non fulfilment of contractual obligations has not yet materialized.

To ensure uninterrupted power supply, Central Coalfields Limited placed an order on BHEL in March 1987 for commissioning of 2 x 10 MW Captive Power Plant at Kathara with completion date by September 1990. The plant, commissioned in May/June 1995, failed to give the desired output and remained completely idle since May 2000 rendering investment of Rs.80.24 crore on this project unfruitful.

In order to ensure un-interrupted power supply at Kathara Area, CCL prepared a scheme for setting up a 2 x 10 MW CPP which was approved by CIL and the Ministry of Coal. Accordingly, an order was placed with BHEL for supply and commissioning of the plant. The Plant was partially commissioned. During trial run and stabilization period, the plant generated average yearly output of only 41.64 lakhs KWH. The plant was never fully commissioned because of the problems created by the villagers, Antisocial elements and Local Political Leaders. The Contractor M/s BHEL left the job unfinished and CCL management terminated the contract with BHEL. Thereafter, action was initiated for leasing out the plant. The plant has been leased out to M/s Imperial Fasteners Pvt. Limited., Delhi after observing formalities. The plant has also been handed over to M/s Imperial Fasteners Pvt. Limited on 13.01.06 and running successfully. - 191

Ministry of Coal-Annual Report: 2006-07

In view of the facts stated above, the purpose for which Kathara CPP was set up has not been defeated and the investment of Rs.80.24 crore has not become unfruitful. The ATR of the company is being processed in the Ministry. (v) Audit Report No.12 of 2006 : Audit Para No. Para No.5.2.2 Audit Observation Action Taken Report by Companies /MOC Vetting Remarks of Audit Action Taken Report by Companies/ Ministry of Coal

DLF Power Company Limited built and Reply from CCL received and is being processed in commissioned two Captive Power Plants the Ministry. (CPPs) at Rajrappa and Giddi in July 1999 and April 2000 respectively to meet acute shortage of power for Central Coalfields Limited. But the CPPs could not be synchronised with DVC grid and as a result, the Company incurred an avoidable expenditure of Rs.37.05 crore for the unused energy from 1999-2000 to 2004-2005.

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Ministry of Coal-Annual Report: 2006-07

(vi) Audit Report No.12 of 2006 : Audit Para No. Para No.5.3.1 Audit Observation Action Taken Report by Companies /MOC Vetting Remarks of Audit

Incorrect estimation of Taxable income and consequent short payment of advance income tax by CMPDIL resulted in avoidable payment of interest of Rs.72.42 lakh in respect of the financial years 2001-02 to 2003-04.

As mentioned in the audit objection the BCCL has informed audit that the estimated profit and actual profit would always vary and therefore the calculation of advance income tax and actual income tax payable would also vary. The reason for shortfall in payment of advance income tax was mainly attributed to wide variations in estimated and actuarial valuation of gratuity and leave encashment, budgeted and actual profit and minor variations in estimated and actual rate per Engineering Day (ED) and per meter of drilling which were available much beyond March of the respective years. Other factors viz. provision for bad and doubtful debts and obsolete items etc. were also causing variance between estimated advance income tax and actual income tax. The Ministry stated (September 2005) that though efforts were made to minimise the variation between budgeted and actual income, the difference could not be eliminated due to abnormal and irregular variation in actuarial valuation of gratuity and leave encashment. The audit has reiterated the objection & it is being again examined.

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Ministry of Coal-Annual Report: 2006-07

(vii) Audit Report No.12 of 2006 : Audit Para No. Para No.5.4.1 Audit Observation Action Taken Report by Companies /MOC Vetting Remarks of Audit

Against the actual maximum demand Reply from ECL received and is being processed in the of 750 KVA for power of Kalidaspur Ministry. Project, the Management reduced the contracted power load from 1,500 KVA to 1,000 KVA (to be increased by 100 KVA in every succeeding year) with effect from April 1998 resulting in payment of Rs.63.47 lakh towards unconsumed power during April 1998 to June 2004 in Eastern Coalfields Limited. Audit Observation Action Taken Report by Companies /MOC Vetting Remarks of Audit

(viii) Audit Report No.12 of 2006 : Audit Para No. Para No.5.5.1.

Northern Coalfields Limited preferred sales bills without considering subsequent adjustments on account of excess moisture and thereby had to absorb an extra expenditure of Rs.14.34 crore on account of excess statutory dues.

As mentioned in the audit objection NCL has informed audit that necessary steps had been taken for adjustment of excess moisture beyond permissible limit as per analysis report, from monthly dispatch bills, as suggested by Audit. An instruction in this regard was issued to the concerned project authorities on 31 March 2005 for implementation. The ATR of the company is Ministry. - 194 being processed in the

Ministry of Coal-Annual Report: 2006-07

(ix) Audit Report No.12 of 2006 : Audit Para No. Para No.5.6.1 Audit Observation Action Taken Report by Companies /MOC South Eastern Vetting Remarks of Audit

South Eastern Coalfields Limited did not ascertain Reply awaited from the feasibility of coal dispatches from Pali siding Coalfields Limited. through Coal Handling Plant before starting construction, which resulted in wasteful expenditure of Rs.1.06 crore and blocking of funds of Rs.2.30 crores for more than five years.

(x) Audit Report No.12 of 2006 : Audit Para No. Para No.5.7.1 Audit Observation Action Taken Report by Companies /MOC Vetting Remarks of Audit

Western Coalfields Limited (WCL) delayed the installation of weighbridges (at Pench Area) and incurred a loss of Rs.2.96 crore on account of avoidable payment of penalty for The weighbridge at BG siding could not be installed underloading and overloading of because: coal wagons over a period of five o Before 2000-01, there was no provision for bringing years from 2000-01. back loaded wagons from Eklahara, Bhamori, Chandameta, Chandamenta (North) and EDC sidings to BG siding. - 195

The underloading/overloading of wagons happens mainly due to heterogeneous nature of coal. The coal loaded in a rake of sidings is a mix of different mines and it is very difficult to load exact quantity into wagon with payloader, therefore, underloading /overloading occurs as weigh cannot be gauged.

Ministry of Coal-Annual Report: 2006-07

o Only after closure of these mines that management could take up the issue of installation of weighbridge at BG siding. o It is also worth mentioning that the weighbridges can be installed with co-operation of Railway. It takes time to complete procedural formalities and meet installation requirements. o It is true that commercial use of first weighbridge could not be started in March 2003 as only half the number of wagons in a rake would have been weighed and railways do not accept half weighed rakes and neither do they issue Railway Receipt. Out of 2.96 crores loss due to underloading and overloading, 1.71 crores belongs to EDC siding which could not have been avoided as there is no arrangement of chute loading and therefore, static weighbridge could not have been installed and control of underloading and overloading is possible only in static weighbridge. The ATR of the company is being processed in the Ministry. ---------x---------x---------

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Ministry of Coal-Annual Report: 2006-07

Annexure-6A (Chapter-6)
PROJECTS SANCTIONED BY CIL & ITS SUBSIDIARIES/SCCL UNDER DELEGATED POWER FROM 01.04.2006 TO 31.12.2006.

New projects sanctioned by Coal India Limited


Sl. No. 1 2 3 4 Name of Projects Kumardih B UG Siduli UG Nabakajore-Modhabpur UG Khottadih OC TOTAL Company ECL ECL ECL ECL Latest Capacity (Mty) 0.42 0.30 0.30 1.00 2.02 Latest capital (Rs. Crs.) 79.23 54.99 56.14 23.01 213.37

New projects sanctioned by Coal Companies


Sl. No. 1 2 3 4 5 6 7 8 9 Name of Projects Konar OC Karo OC Gokul OC Kolar Pimpri Extn. OC Dugga OC Bijari OC Ambika OC Lingraj Expn. (Phase-II) OC Jagannath Extn. (Phase-II) OC TOTAL Company CCL CCL WCL WCL SECL SECL SECL MCL MCL Latest Capacity (Mty) 3.50 3.50 1.00 1.50 1.00 1.50 1.00 3.00 2.00 18.00 Latest capital (Rs.Crs.) 74.53 96.53 79.83 72.90 87.05 23.75 22.30 2.18 4.95 464.02

New projects sanctioned by Singareni Collieries Company Limited


Sl. No. 1 2 3 4 5 Name of Projects Company Sanctioned Capacity (Mty) 0.220 2.500 2.000 2.000 0.454 Sanctioned capital (Rs.Crs.) 3.030 92.460 94.000 39.980 24.660 Date of Sanction 28.6.2006 04.9.2006 28.6.2006 28.6.2006 04.9.2006

Introduction of SDLs in SK & RK1A Inclines Khairagura OCP RFR Sravanapally OCP JVR OC-I Expansion Semi - Mechanisation with diesel operated LHDs in GDK-5 TOTAL

SCCL SCCL SCCL SCCL SCCL

7.174

254.130

----- x ----- x ----- x ----- 197


Ministry of Coal-Annual Report: 2006-07

Annexure-6B (Chapter-6)
STATUS OF ON-GOING PROJECTS COSTING RS. 20 CRORES & ABOVE IN COAL/ LIGNITE SECTOR AS ON 31.12.2006

Sl. No

Name of Project & Type

Capacit y (MTY)

Commissioning Date Sch. Ant.

Time Overrun (Months)

Sanc. Cost (Rs. Crs)

Ant. Cost (Rs. Crs)

BE/RE 2006-07 (Rs Crs)

Expd. till Dec. 06 (Rs. Crs) Status (As on 31.12.2006)

ECL 1 Rajmahal Expansion OC J K Nagar UG (RPR) 6.50 (Incr.) 0.435 Mar-05 Mar-07 24 54.15 54.15 0.00 51.396 The project is delayed due to delay in installation of Skip. Contract for present contractor is terminated. The tender document for balance work for skip was received from CMPDI in July 2006. Since estimated part was absent in tender document, the same was returned to CMPDIL for completing the same. The project is on schedule. The project is on schedule. The project is on schedule. The project is on schedule. The project is on schedule. Mar.10 Mar.10 0 50.08 50.08 0.00 0.00 The project is on schedule.

3 4 5 6 7

Sarpi Aug. UG Jhanjra LW (Ph.II) UG Jhanjra Aug. UG Khottadih Aug. UG Kumardih B UG

0.42 1.70 0.42 0.42 0.42

Mar-07 Mar-10 Mar-07 Mar-07 Mar-13

Mar-07 Mar-10 Mar-07 Mar-07 Mar-13

0 0 0 0

74.07 287.17 69.28 60.57 79.23

74.07 287.17 69.28 60.77 79.23

0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00

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Ministry of Coal-Annual Report: 2006-07

Sl. No

Name of Project & Type

Capacit y (MTY)

Commissioning Date Sch. Ant.

Time Overrun (Months)

Sanc. Cost (Rs. Crs) 53.05 56.14 54.99 23.01 81..25 182.60

Ant. Cost (Rs. Crs) 53.05 56.14 54.99 23.01 81..25 182.60

BE/RE 2006-07 (Rs Crs) 0.00 0.00 0.00 0.00 11.50 4.70

Expd. till Dec. 06 (Rs. Crs) 26.114 0.00 0.00 0.00 12.19 176.74 Status (As on 31.12.2006) RCE (0.30 mty, Rs.26.3653 crores) was approved by Govt. on 26.1.2006. The project is on schedule. The project is on schedule. The project is on schedule. The project is on schedule. The project is presently suffering due to adverse roof condition leading to frequent roof falls coupled with water problem. Director (T) MOC communicated that the project may be foreclosed. The project is on schedule. The project is on schedule. Completion Report, submitted to Govt. in November 2004, was not accepted by MOC as capital expenditure (as on March 2004) was less than 90% of the sanctioned capital. CCL justified that, CHP, as envisaged in PR was not required as there is another CHP nearby. RCE is under preparation.

8 9 10 11 12 13

Sarpi UG NabakajoraMadhabpur UG Siduli UG Khottadih OC BCCL Dahibari Basantimata OC Pootkee UG Balihari

0.30 0.30 0.30 1.00 1.30 0.68

Mar-07 Mar-11 Mar-11 Mar-08 March03

Mar-07 Mar-11 Mar-11 Mar-08 Mar-07

0 0 0 0 0 48

CCL 14 15 16 Magadh OC Ashok Expn. OC Jharkhand OC 12.00 5.00 (Incr.) 1.00 Mar-04 Mar-07 36 110.89 110.89 9.32 75.55 Mar-13 Mar-11 Mar-13 Mar-11 0 0 469.78 471.66 469.78 471.66 14.00 4.24 1.94 69.63

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17

Topa Re-Organization

1.20

Mar-06

Mar-08

24

65.25

65.25

6.30

22.40

Response from private parties on tendering for OB outsourcing not received during last 3 times. Tendering process for 4th time was repeated & TCR was approved by CCL. LOI issued. Work started in November 2005. Project is now anticipated to be completed by march 2008. The project initially suffered due to land acquisition & fund constraint resulting in delay in procurement of HEMM. It is now anticipated to be completed by March 2007. The project is on schedule. The project is on schedule.

18

Bokaro Bermo Seam

0.80

Mar-00

Mar-07

84

46.78

46.78

1.99

32.90

19 20

Karo OC Konar OC NCL

3.50 3.50

Mar-10 Mar-11

Mar-10 Mar-11

0 0

96.53 74.53

96.53 74.53

9.67 7.00

3.03 2.42

21

Nigahi Expn. OC

10.00

Mar-04

Mar-08

48

1846.49

1846.49

107.01

1459.52

The project has achieved its targeted production. Construction of CHP (Phase-II) was delayed & now anticipated to be completed by March 2008. It was indicated that, there will be no cost overrun. The project is on schedule. The project is on schedule. The project is on schedule. The project is on schedule. The project is on schedule.

22 23 24 25 26

Block B. OC Krishnashila OC Amlohri Expn. OC Bina OC Extension

3.50 4.00 6.00 6.00 0.40

Mar-12 Mar-10 Mar-14 Mar-14 Marg. Scheme

Mar-12 Mar-10 Mar-14 Mar-14 M arg. Scheme

0 0 0 0 0

746.04 789.88 1352.04 168.97 46.93

746.04 789.88 1352.04 168.97 46.93

39.67 3.27 0.00 0.00 0.00

62.469 32.80 0.00 0.00 19.34

Amlohri Marg. Schm. OC

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Ministry of Coal-Annual Report: 2006-07

27 28 29

Jayant Marginal Schm. OC Khadia marginal Schm OC Bina Interim Scheme OC WCL

0.50 1.00 1.00

Marg. Scheme Marg. Scheme Marg. Scheme

Marg. Scheme Marg. Scheme Marg. Scheme

0 0 0

44.85 35.40 33.01

44.85 35.40 33.01

0.00 0.00 0.00

0.00 26.763 26.05

The project is on schedule. The project is on schedule. The project is on schedule.

30 31

Gouri Deeep OC Kolgaon OC

0.40 0.40

Mar-08 Mar-06

Mar-08 Mar-06

0 12

86.22 74.97

86.22 74.97

0.676 4.9924

0.25 15.54

The project is on schedule. Coal production started from January 2006 but was stopped due to resistance from land oustees. The project is on schedule. Physical possession of land is being delayed due to land oustees demanding employment beyond companys norms. The project is on schedule. The project is on schedule. The project is on schedule. The project is on schedule. The project is on schedule. The project is on schedule. The project is on schedule. The project is on schedule.

32 33

Yekona-II OC Urdhan OC

0.60 0.50

Mar-10 Mar-06

Mar-10 Mar-06

0 12

48.05 43.50

48.05 43.50

3.34 0.37

0.00 3.981

34 35 36 37 38 39 40 41

Gokul OC Kolar Pimpri Extn. OC Bhanegaon OC Pauni-II OC Junakunda OC Gondegaon Expn. OC Tawa-II UG Singori OC

1.00 1.50 0.60 0.60 0.60 0.75 0.39 0.80

Mar-11 Mar-12 Mar-10 Mar-10 Mar-10 Mar-10 Mar-09 Mar-12

Mar-11 Mar-12 Mar-10 Mar-10 Mar-10 Mar-10 Mar-09 Mar-12

0 0 0 0 0 0 0 0

79.83 72.90 30.44 28.11 23.58 27.54 36.43 48.71

79.83 72.90 30.44 28.11 23.58 27.54 36.43 48.71

0.00 1.70 4.161 0.618 0.401 0.848 3.531 0.190

0.00 0.00 0.2264 0.00 4.762 0.76 6.37 0.094

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Ministry of Coal-Annual Report: 2006-07

42 43 44

Inder UG to OC (Chinchoi) Yekona-I OC Adasa UG

0.60 0.40 0.21

Mar-12 Mar-11 Mar-06

Mar-12 Mar-11 Mar-07

0 0 12

36.92 22.74 39.87

36.92 22.74 39.87

0.652 0.00 3.34 23

0.72 0.00 10.35

The project is on schedule. The project is on schedule. Slow drivage of incline due to adverse geo-mining conditions and delay in shifting of manpower. The project is on schedule.

45

Makardhokra-I OC SECL

1.00

Mar-12

Mar-12

39.98

39.98

1.244

0.9845

46 47 48 49 50

Dipka Expn. OC Gevra Expn. OC Kusmunda Expn. OC Amadand OC Mahan OC

10.00 13.00 4.00 1.15 0.36

Mar-10 Mar-10 Mar-11 Mar-07 Mar-05

Mar-10 Mar-10 Mar-11 Mar-08 Mar-08

0 0 0 12 36

856.59 1339.69 360.25 83.39 41.96

856.59 1339.69 360.25 83.39 41.96

40.12 28.86 0.00 14.67 3.19

421.2023 495.6556 441.6229 1.607 12.085

The project is on schedule. The project is on schedule. The project is on schedule. Land acquisition problems. Frequent stoppage by villagers for employment. Matter taken up with Secretary (Revenue) & C.M., Chhattisgarh. The project is on schedule The project is on schedule The project is on schedule The project is on schedule The project is on schedule The project is on schedule The project is on schedule The project is on schedule

51 52 53 54 55 56 57 58

Dugga Expn.OC Bijari OC Ambika OC Amera OC Amgaon OC Vijay West UG Binkara UG Baroud OC

1.00 1.50 1.00 1.00 1.00 0.50 0.36 1.00

Mar-08 Mar-11 Mar-10 Mar-08 Mar-11 Mar-10 Mar-10 Mar-09

Mar-08 Mar-11 Mar-10 Mar-08 Mar-11 Mar-10 Mar-10 Mar-09

0 0 0 0 0 0 0 0

87.05 35.79 22.30 41.69 39.28 63.56 41.98 28.02

87.05 35.79 22.30 41.69 39.28 63.56 41.98 28.02

0.00 0.00 0.00 9.89 0.00 0.00 0.00 6.33

0.00 0.00 0.00 9.5445 0.00 0.00 0.00 8.403

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Ministry of Coal-Annual Report: 2006-07

59 60 61 62

Saraipalli OC Sheetaldhara & Kurja UG Khairaha UG Pinora Aug. UG

1.40 0.88 0.59 0.48

Mar-08 May -06 Mar-10 Mar-04

Mar-08 May -08 Mar-10 Mar-08

0 24 0 48

22.83 98.98 88.33 49.93

22.83 98.98 88.33 49.93

19.33 2.57 0.11 0.41

0.00 44.369 0.00 3.2535

The project is on schedule The project is delayed because delay in finalization of CM package. The project is on schedule Due to delay in Tendering/Work award (introduction of Mass Production Technology). Feasibility of introducing CM is being re-examined. Due to delay in Tendering/Work award (Introduction of Mass Production Technology). Feasibility of introducing CM is re-examined. The project is on schedule The project is on schedule The project is on schedule Delay due to geo-logical disturbances in incline drivage and land acquisition problem with employment to land oustees. Delay in land acquisition. Incline drivage is in progress. Due to adverse geo-mining conditions progress of airshaft sinking was slow & inclines could not be connected as per schedule. The project is on schedule The project is on schedule Due to delay in EMP clearance. Additional incline drivage of 311 m. in thin zone. Adverse geo-mining conditions excessive wager seepage.

63

Vindhya Aug. UG

0.59

Mar-04

Mar-08

48

49.90

49.90

0.87

6.1175

64 65 66 67

Rani-Atari UG Haldibari UG Ketki UG Amadand Bartarai

0.48 0.42 0.42 0.47

Mar-08 Mar-10 Mar-10 M ar-04

M ar-08 Mar-10 Mar-10 Mar-07

0 0 0 36

48.54 47.59 46.24 45.26

48.54 47.59 46.24 45.26

2.68 0.22 0.00 1.28

25.004 0.00 0.00 43.127

68

Nawapara UG

0.36

Mar-06

Mar-08

24

42.55

42.55

3.60

19.929

69 70 71

Damini UG Jhiria UG Gayatri UG

0.46 0.33 0.30

Mar-09 M ar-09 Mar-04

Mar-09 Mar-09 Mar-08

0 0 48

39.32 32.07 21.92

39.32 32.07 21.92

1.33 0.00 2.25

2.4846 0.00 19.9147

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Ministry of Coal-Annual Report: 2006-07

72 73 74 75

Seam III Anjan Hill UG Seam V of NCPH V UG Jampali OC Mahan-II OC MCL

0.42 0.41 2.00 1.00

Oct-08 Mar-09 Mar-10 Mar-10

Oct-08 Mar-09 Mar-10 Mar-10

0 0 0 0

46.75 30.71 47.72 37.45

46.75 30.71 47.72 37.45

0.30 0.88 0.00 0.00

2.554 0.00 0.00 0.00

The project is on schedule. The project is on schedule. The project is on schedule. The project is on schedule.

76 77 78 79 80 81 82

Basundhara (W) OC Bhubaneswari OC Kaniha OC Kulda OC Lingraj Expn OC Bharatpur OC Hingula-II OC (Ph.I) Expn. Expn.

2.40 10.00 3.50 10.00 5.00 6.00 4.00 (2.00) 8.00 (4.00)

Mar-08 Mar-12 Mar-09 Mar-10 Mar-07 Mar-11 Mar-09

Mar-08 Mar-12 Mar-09 Mar-10 Mar-07 Mar-11 Mar-09

0 0 0 0 0 0 0

176.54 336.68 96.18 302.96 98.89 95.87 89.78

176.54 336.68 96.18 302.96 98.89 95.87 89.78

18.00 13.37 5.92 3.00 30.17 43.51 3.69

35.30 11.67 26.47 23.10 72.87 90.84 25.90

The project is on schedule. The project is on schedule. The project is on schedule. The project is on schedule. The project is on schedule. The project is on schedule. The project is on schedule.

83

Hingula-II Expn. OC (Ph.II) Lakhanpur OC Expn.

Mar-10

Mar-10

35.67

35.67

0.00

0.00

The project is on schedule.

84 85 86

5.00 1.50 1.00

Mar-10 Mar-07 Mar-06

Mar-10 Mar-07 Mar-07

0 0 12

98.74 35.47 28.69

98.74 35.47 28.69

42.21 15.32 33.58

36.65 29.05 41.31

The project is on schedule. The project is on schedule. The project cant be declared completed due to less than 90% expenditure. Anticipated to be completed by March 2007.

Belpahar Expn. OC (Ph.II) Samaleshwari Expn. (Ph-I) OC

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Ministry of Coal-Annual Report: 2006-07

87 88 89 90 91

Samaleshwari Expn. (Ph-II) OC Nataraj UG Talcher (W) UG Jagannath UG Ananta Expn. OC (Ph-II) SCCL

2.00 0.64 0.52 0.67 6.50

Mar-08 Mar-10 Mar-10 Mar-07

Mar-08 Mar-10 Mar-10 Mar-07

0 0 0 0 0

42.07 92.11 85.08 80.75 35.88

42.07 92.11 85.08 80.75 35.88

0.00 0.74 0.50 0.10 6.03

0.00 4.21 1.61 0.91 35.35

The project is on schedule. The project is on schedule. The project is on schedule. The project is on schedule. The project is on schedule.

92

21 Incline BG -UG

0.285

200304 200607 200405 200708 200708

2006-07

36

27.050

27.050

0.700

21.329

Delay due to change in location of deployment of equipment which required additional preparatory works. The Project is on schedule. Delay in award of shaft sinking work and slow rate of inter-seam tunneling work. The Project is on schedule. The Project is on schedule.

93 94

Kakatiyakhani 3 Incline-UG Kakatiyakhani 6 Incline UG Kakatiyakhani 7 Incline-UG Kakatiyakhani-8 & 8A Incline UG

0.572 0.312

2006-07 2006-07

0 24

47.330 29.900

47.330 29.900

13.580 4.000

35.752 26.127

95 96

0.312 0.416

2007.08 2007-08

0 0

33.120 41.540

33.120 41.540

2.000 4.000

0.961 10.513

97 98 99

Kaskatiyakhani-9 & 9A Incline-UG Kasipet OCP Khairagura RFR OCP

0.468 0.600 2.500

200910 200405 200809

2009-10 2006-07 2008-09

0 24 OS

47.130 47.290 92.460

47.130 47.290 92.460

1.000 0.000 8.370

0.179 0.000 26.969

The Project is on schedule. Delay in acquisition of non-forest land & Conduct of EPH. Delay in acquisition of forest land.

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Ministry of Coal-Annual Report: 2006-07

100 101

Ramagundam OCP-I -Expansion JVR OCP-I (Sattupalli)

1.500 1.100

200708 200708 200708 200607 200708 200607 200708 200708 201011

2007-08 2007-08

0 0

88.100 91.240

88.100 91.240

29.030 35.050

25.407 49.116

The Project is on schedule. The Project is on schedule.

102 103 104 105 106 107 108 109

VK-7 Continuous Miner (UG) Manuguru OC-III Srirampur OC-I BPA OC-II Extn. Dorli OCP-I Dorli OCP-II Koyagudem OCP-II SDLs at RK-NT, VK-7, GDK-8A, JK-5, PVK-5, 21 Inc., PK-1, GDK5A, SMG-1, KK-5, KK-1, GDK-6, & GDK-6B Inclines (42 Nos.) (UG) Continuous Miner at PVK-5 Incline (UG)

0.400 0.500 0.600 0.400 0.700 0.700 2.000

2007-08 2006-07 2007-08 2006-07 2007-08 2007-08 2010-11

0 0 0 0 0 0 0

74.730 25.100 48.930 35.510 48.680 47.670 58.890

74.730 25.100 48.930 35.510 48.680 47.670 58.890

0.000 2.000 1.000 4.00 1.500 0.500 0.000

67.560 9.625 0.600 2.995 0.679 0.000 0.000

The Project is on schedule. The Project is on schedule The Project is on schedule The Project is on schedule. The Project is on schedule. The Project is on schedule. The Project is on schedule.

1.927

200506

2006-07

12

29.840

29.840

4.000

10.797

Delay in supply of spares.

110

0.400

200708

2007-08

48.300

48.300

0.000

0.000

The Project is on schedule.

- 206
Ministry of Coal-Annual Report: 2006-07

111

Continuous Miner at GDK-8 Incline (UG) Continuous Miner at GDK-10 Incline (UG) Continuous Miner at GDK-11A Incline (UG) Srirampur (OC) Abbapur OCP JK-5 OCP Sravanpally JVR Expansion OCP OC-I OC-II

0.240

200607 200607 200809 200910 200809 200910 200809 200910 200809

2006-07

20.780

20.780

0.000

0.000

The Project is on schedule.

112

0.240

2006-07

20.780

20.780

0.000

0.000

The Project is on schedule.

113

0.400

2008-09

70.800

70.800

0.000

0.000

The Project is on schedule.

114 115

2.500 0.600

2009-10 2008-09

0 0

88.470 39.480

88.470 39.480

0.000 0.000

0.000 0.975

The Project is on schedule. The Project is on schedule.

116 117 118 119

2.000 2.000 2.000 0.454

2009-10 2008-09 2009-10 2008-09

0 0 0 0

76.150 94.000 39.980 24.660

76.150 94.000 39.980 24.660

0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000

The Project is on schedule. The Project is on schedule. The Project is on schedule. The Project is on schedule.

SemiMechanisation with diesel operated LHDs in GDK-5-UG Adriyala Project-UG Shaft

120 121

2.144 1.167

201213 201112

2012-13 2011-12

0 0

212.340 249.030

212.340 249.030

35.000 10.500

4.385 0.000

The Project is on schedule. The Project is on schedule.

Shanthi Khani Longwall ProjectUG

- 207
Ministry of Coal-Annual Report: 2006-07

NLC 122 Mine-II Expansion 4.50 MTPA 06/2009 6/2009 0 2161.28 2161.28 470.00 / 402.49 123 TPS-II Expansion 500 MW Unit-I 02/09 Unit-II 06/09 124 Barsingsar Mine 2.10 MTPA 2x125 MW 06/2009 Unit-I 02/09 Unit-II 06/09 06/2009 0 254.07 254.07 40.87/ 43.48 Unit-I 12/08 Unit-II 06/09 Unit-I 12/08 Unit-II 06/09 0 1114.18 1114.18 200.00/ 200.00 95.78 The Project is on schedule. 22.18 The Project is on schedule. 0 2030.78 2030.78 250.00/ 204.49 132.37 The Project is on schedule. 326.40 The Project is on schedule.

125

Barsingsar Thermal

- 208
Ministry of Coal-Annual Report: 2006-07

NON-MINING PROJECTS (CIL)


Sl No

Name of Projects

Capacity (MTY)

Commissioning Date Schedul Anticipate e d May-03 Mar-07

Time Overrun

(Months) 48

Sanc. Cost (Rs. Crs) 61.09 (RCE)

Expd. till Nov. 06 (Rs. Crs) 9.0778

Status as on 31.12.2006

126

Shifting of people from endangered areas of BCCL

4600

RCE for Rs. 61.09 crores approved by EFC in February 2003. 344 BCCL houses taken up & construction completed. 150 houses occupied. Non-BCCL: JRDA has been constituted. Work Order for 900 houses given by JRDA, Dhanbad.

127

Phusro - Jarangdih Railway Line Diversion, CCL

Mar-93

Mar-07

156

48.78

66.14

The project is suffering due to delay in land acquisition and rehabilitation problem as well as demand of emp loyment, including court cases. Out of 205.79 ha. of land, 196.79 ha. has been acquired till recently. Out of 141 PAFs, 96 have been rehabilitated. Present work is being done on revised alignment.

128

Central Township Scheme, NCL Coal Transportation and Silo Loading Arrangement at NTPC Bulb, Lingaraj, MCL

642 Quarters

Mar-02

--

53 (as on 31.08.05) 0

20.00

Project proposed to be kept in abeyance.

129

May-08

May-08

62.91

Project is on schedule.

- 209
Ministry of Coal-Annual Report: 2006-07

NON-MINING PROJECTS (SCCL)


Sl No Name of Project Capacity (MTY) ORIGINAL APPROVAL Board Minutes No. & date Capital cost (Rs. Crs 1 Modifications to GDK-1 CHP, RG-I 5.50 MTPA 461.21 Dt.16.3.04 (For increased capacity) 2 Modifications RKP CHP, MM to 3.00 MTPA 465.11(b) Dt.20.10.04 (For increased capacity) 3 Modifications SRP CHP, SRP to 4.00 MTPA 465.8(c) Dt.20.10.04 (For increased capacity) 4 Modifications to Rudrampur CHP, KGM 4.5 MTPA 8.40 8.00 5.20 420.27 Dt.26.10.05 (For introduction of Engine on Load) 420.27 Dt.26.10.05 (For introduction of Engine on Load) 420.27 Dt.26.10.05 (For introduction of Engine on Load) 420.27 Dt.26.10.05 (For introduction of Engine on Load) 5 Modifications to Kondapuram CHP, MNG 4.5 MTPA 420.27 Dt.26.10.05 (For introduction of Engine on Load) 5.80 2006-07 2006-07 6.50 2006-07 2006-07 11.40 2006-07 2006-07 10.95 2006-07 2006-07 LATEST APPROVAL Latest Approval Minutes No. & date Capital cost (Rs. Crs.) 12.40 2006-07 2006-07 Schedule Year of Completion Anticipated Year of Completion

- 210
Ministry of Coal-Annual Report: 2006-07

Modifications to Yellandu CHP, YLD

1.50 MTPA -

420.27 Dt.26.10.05 (For introduction of Engine on Load)

12.35

2006-07

2006-07

Modifications to Shantikhani CHP, MM

4.5 MTPA -

420.27 Dt.26.10.05 (For introduction of Engine on Load)

12.50

2006-07

2006-07

Modifications to OC-III CHP, RG-III

3.75 MTPA -

420.27 Dt.26.10.05 (For introduction of Engine on Load)

7.80

2006-07

2006-07

Installation Inpit Crusher Conveyor System in PK OC-II Mine, MNG Installation of Feeder Breakers inside the Quarry of GK-OCP, KGM Bringing PK OC-II, MNG to International Standards, MNG Housing Ramagundam Housing Bhoopalpalli at

465.15(e) Dt.20.10.04

11.12

470.26 Dt.26.10.05

20.54

2006-07

2006-07

10

465.15(f) Dt.20.10.04

3.25

470.25 Dt. 26.10.05

10.94

2006-07

2006-07

11

Dt 11.7.2003 -

9.50

2005-2006

2006-07

12

Dt 16.3.2004

92.68

2006-07

2006-07

13

at

Dt 16.3.2004

54.45

2006-07

2006-07

- 211
Ministry of Coal-Annual Report: 2006-07

14 15 16 17 18

Housing Manuguru

at

Dt 16.3.2004 Dt 16.3.2004 Dt 16.3.2004 Dt 11.6.2004 Dt 28.12.2004

30.45 4.73 4.55 24.50 14.00

2006-07 2005-06 2005-06 2006-07 2006-07

2006-07 2006-07 2006-07 2006-07 2006-07

Housing at Chennur Housing Koyagudem Housing Corporate Housing Rudrampur at at at

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

- 212
Ministry of Coal-Annual Report: 2006-07

Annexure-7A (Chapter-7)
SIGNIFICANT STATISTICS ABOUT COAL AND LIGNITE

Production

Unit

2002-03

2003-04

2004-05

2005-06

a)

i) For Metallurgical Purposes

b) c) d)

e) f) g) h) i)

Million Tonnes ii) For Non-Metallurgical Million purposes Tonnes Total Coking Coal Million Tonnes Non-Coking Coal Million Tonnes Total Coal production Million Tonnes Lignite-NLC Million Tonnes Gujarat Million Tonnes Total Lignite Million Tonnes Washed Coal Coking (CIL) Million Tonnes Hard Coke(CIL) Lakh Tonnes Soft Coke(CIL) Lakh Tonnes Coke(NLC) Lakh Tonnes Urea(NLC) Lakh Tonnes

18.35 12.14 30.49 306.38 336.87 18.62 6.92 26.02+ 4.63 0.61 0.00 0 0 - 213

18.27 11.13 29.40 326.32 355.72 20.56 5.24 27.96+ 4.53 0.50 0 0 0

18.19 12.03 30.22 347.05 377.270 21.57 8.22 30.34 4.857 0.39 0 0 0

16.97 14.54 31.51 375.53 407.02 20.44 8.94 30.07 4.98 0.04 0 0 0

2006-07 AprilDec. 06 11.35 9.13 20.49 274.45 295.13 13.97 6.68 21.14 2.76 0.02 -

Ministry of Coal-Annual Report: 2006-07

j) II a) b) II I a)

Power Generation Million Units (Gross)(NLC) OUTPUT PER MANSHIFT Coal India Limited Tonnes SCCL Tonnes DESPATCHES Coking Coal i) Metallurgical ii) Non-Metallurgical Total Coking coal

14968

13920

10657

2.67 1.89

2.82 1.81

2.93 1.86

b)

Non coking Coal

Million Tonnes Million Tonnes Million Tonnes Million Tonnes Million Tonnes Million Tonnes Million Tonnes Million Tonnes

16.65 14.34 30.99 303.21

16.64 14.25 30.69 321.77

17.56 13.19 30.75 342.57

16.50 14.04 30.54 359.48

11.45 9.31 20.75 279.10

IV PITHEAD STOCK a) Metallurgical coking b) c) Non-Metallurgical Non-coking Total Pithead stock


(i) +All India (ii)

1.26 1.72 16.42 19.70

1.69 0.88 18.73 21.30

1.93 1.57 20.47 23.967

2.83 2.05 29.45 34.33

0.09 0.02 1.60 29.07

* Provisional (iii) Does not include Meghalaya Coal

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

- 214
Ministry of Coal-Annual Report: 2006-07

Annexure-7B (Chapter-7)

COMPANY-WISE COAL PRODUCTION DURING LAST FIVE YEARS


(In million tonnes)
COMPANY 2001-2002 Target 28.50 30.00 36.00 41.50 35.00 63.00 44.50 0.50 279.00 32.38 11.35 322.73 Actual 28.55 25.25 33.81 42.46 37.01 64.12 47.81 0.64 279.65 30.81 12.18 322.64 2002-2003 Target 29.00 28.00 34.25 44.00 37.00 65.25 48.00 0.50 286.00 32.50 13.10 331.60 Actual 27.18 24.15 36.98 45.10 37.82 66.60 52.23 0.63 290.69 33.24 12.94 336.87 2003-2004 Target 29.00 27.50 35.50 46.50 37.25 69.00 53.10 0.65 298.50 33.50 13.05 345.05 Actual 28.00 22.68 37.33 47.03 39.53 71.01 60.05 0.73 306.36 33.85 15.51 355.72 2004-05 Target 29.00 25.20 40.00 47.50 38.00 74.50 59.00 0.80 314.00 35.00 15.65 364.65 Actual 27.25 22.32 37.39 49.95 41.41 78.55 66.08 0.63 323.58 35.30 18.59 377.27 2005-06 Target 29.83 24.22 40.40 50.80 41.90 83.0 72.00 0.85 343.00 36.00 26.28 405.28 Actual 31.11 23.31 40.51 51.52 43.20 83.02 69.60 1.10 343.37 36.14 27.51 407.02 2006-07* April Dec06 Target Actual 22.44 21.11 18.00 16.58 27.57 23.52 37.52 37.53 30.27 30.79 63.29 62.47 57.60 57.33 0.68 0.74 257.37 27.73 17.85 302.95 250.07 26.10 18.98 295.15

ECL BCCL CCL NCL WCL SECL MCL NEC Total CIL SCCL Captive Collieries Grand Total

(i)* Provisional

(ii) Does not include Meghalaya Coal

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

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Ministry of Coal-Annual Report: 2006-07

Annexure-7C (Chapter-7) COMPANY-WISE COAL DESPATCHES & VENDIBLE STOCKS DURING LAST FIVE YEARS.
(In million tonnes)
Company 200102 ECL BCCL CCL NCL WCL SECL MCL NEC Total CIL SCCL Captive Collieries Grand Total 27.80 24.70 33.06 42.68 38.03 64.86 49.03 0.62 280.78 31.05 12.16 323.99 2002-03 Coal Despatches During 2003-04 2004-05 200506 28.20 22.01 38.56 51.68 41.72 81.16 68.21 1.17 332.71 25.33 21.98 290.02 2006-07 *(AprilDec,06) 20.91 17.39 27.00 38.26 30.73 63.02 56.74 0.81 254.86 26.14 18.86 299.86 31.3.02 31.3.03 Vendible Stock as on 31.3.04 31.3.05 31.03.06 *31-1206 5.22 2.79 4.77 0.71 3.68 4.99 4.98 0.24 27.38 1.25 0.44 29.07

26.75 21.78 36.53 44.43 38.11 68.27 51.36 0.64 287.87 33.37 12.96 334.20

26.91 23.39 36.20 46.48 39.16 70.87 59.35 0.87 303.23 33.83 15.49 352.55

26.67 22.08 35.74 50.12 40.28 78.76 66.29 0.57 320.51 34.71 18.10 373.31

2.47 2.15 3.72 0.55 1.11 5.68 1.67 0.48 17.83 0.58 0.12 18.53

2.33 4.14 3.89 1.22 0.77 3.91 2.52 0.47 19.25 0.28 0.17 19.70

2.90 3.14 4.89 1.82 1.07 3.99 3.21 0.33 21.35 0.26 0.23 21.84

2.97 2.79 6.13 1.61 2.19 3.74 3.01 0.39 22.83 0.73 0.41 23.97

5.38 3.76 8.08 1.45 3.64 5.56 4.40 0.32 32.59 1.42 0.33 34.34

(i)*Provisional (ii) Does not include Meghalaya Coal ----- x ----- x ----- x ----- 216
Ministry of Coal-Annual Report: 2006-07

Annexure-7D (Chapter-7) OUTPUT PER MANSHIFT IN UNDERGROUND AND OPENCAST MINES IN COAL INDIA LIMITED AND IN SINGARENI COLLIERIES COMPANY LIMITED FOR LAST FIVE YEAR
Year Coal India Limited Under Ground Open Cast 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 (Apr-December) 0.64 0.69 0.68 0.69 0.70 068 6.09 6.30 6.66 7.18 7.23 7.80 Overall 2.45 2.67 2.82 3.05 3.07 3.29 Singareni Collieries Company Limited Under Ground Open Cast 0.85 0.86 0.86 0.85 0.89 0.86 6.74 7.66 7.69 8.83 9.60 9.66 Overall 1.66 1.89 1.81 1.99 2.16 2.21

Note: NCL and SECL were set up w.e.f 1.1.1986 MCL was carved out of SECL w.e.f. 3.4.1992

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

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Ministry of Coal-Annual Report: 2006-07

Annexure-7E (Chapter-7)
PERFORMANCE OF WASHERIES /WASHED COKING COAL PRODUCTION DURING THE LAST FIVE YEARS
(In million tonnes) Source/Washery BCCL 2 Dugda-II 3 Bhojudih 4 Patherdih 5 Lodna 6 Sudamdih 7 Barora 8 Moonidih 9 Mohuda 10 Madhuband Total BCCL 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07* (April-Dec.06) 0.31 0.32 0.05 0.00 0.15 0.00 0.24 0.10 0.00 1.17 0.28 0.20 0.45 0.42 1.35 0.24 2.76

0.25 0.68 0.17 0.07 0.28 0.07 0.42 0.25 0.14 2.33 0.65 0.35 0.68 0.33 2.01 0.26 4.60

0.24 0.66 0.09 0 0.25 0.04 0.41 0.31 0.16 2.16 0.54 0.37 0.89 0.38 2.18

0.19 0.58 0.08 0 0.22 0.01 0.46 0.30 0.02 1.86 0.57 0.40 0.99 0.40 2.36

0.21 0.50 0.07 0 0.22 0.00 0.54 0.33 0.00 1.87 0.58 0.38 1.09 0.59 2.64 0.34 4.85

0.55 0.67 0.07 0.00 0.27 0.00 0.49 0.24 0.00 2.29 0.54 0.31 0.84 0.61 2.30 0.40 4.98

CCL
12 13 15 16 Kathara Swang Rajrappa Kedla Total CCL WCL 17 Nandan Total CIL

* Provisional
Ministry of Coal-Annual Report: 2006-07

0.29 0.32 4.63 4.54 ----- x ----- x ----- x ----- 218

Annexure-7E (contd..) (Chapter-7)

TRANSPORT OF COAL AND COAL PRODUCTS BY RAIL, ROAD AND OTHER MEANS EXCLUDING COAL USED FOR COLLIERY CONSUMPTION.
BY RAIL (In million tonnes) Year External 2001-02 2002-03 2003-04 2004-05 2005-06 152.59 152.64 157.76 160.06 163.69 CIL Internal 1.96 1.93 1.63 2.08 2.09 Total 154.55 154.58 159.39 162.14 165.78 132.20 17.58 18.20 16.68 16.25 20.35 14.87 7.91 3.81 5.19 3.29 5.08 SCCL OTHERS Total (CIL/SCCL OTHERS) 180.04 176.59 181.26 181.48 138.08

2006-07 130.85 1.35 (AprilDecember,06) Others do not include Meghalaya Coal.

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

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Ministry of Coal-Annual Report: 2006-07

Annexure-7E (contd..) (Chapter-7)


BY ROAD Year 2000-01 2001-02 2002-03 2003-04
2004-05

External 30.29 31.36 36.28 40.61 48.75 54.19 42.50

Internal 16.88 16.03 16.99 17.49 18.55 19.31 13.01

Total 47.17 47.39 53.27 58.10 67.30 73.50 55.51

SCCL 4.23 4.00 5.23 7.19 8.61 5.55 4.56

OTHERS 3.04 3.37 2.39 0.94 0.42 2.46

Total 54.44 54.25 60.89 66.23 76.33 63.09

2005-06 2006-07 (April Provisional

December)

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

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Ministry of Coal-Annual Report: 2006-07

Annexure-7E (contd..) (Chapter-7) BY MGR


YEAR 2001-02 2002-03 2003-04 2004-05
2005-06 2006-07 (April-December) Provisional

CIL 65.54 66.73 72.36 75.74 80.61 57.71

SCCL 9.08 9.46 9.54 9.62 9.01 6.37

OTHERS -

TOTAL 74.62 76.19 81.90 85.36 65.07

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

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Ministry of Coal-Annual Report: 2006-07

Annexure-7F (Chapter-7)
CONSUMERWISE OFFTAKE OF COAL FROM CIL, SCCL AND OTHERS FOR LAST FIVE YEAR (Million Tonnes) S. No 1. 2. 3. 4. 5. 6. 7. 8. 9.
Name of Consumer 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 (April Dec,06)

Power Houses (Middlings) Steel Plants and Cokeries ( raw coking coal) Loco Cement Plants Fertilizer Plants Soft Coke Manufacturing Brick Kilns, Textiles, Chemicals Paper and other industries Colliery Consumption Total Offtake

242.76 (1.80) 20.28 0.00 11.85 3.20 0.00 45.90 1.80 325.79 (1.80)

250.42 (1.71) 18.93 0.00 12.56 2.49 0.00 49.79 1.48 335.67 (1.71)

265.53 (1.67) 18.91 0.00 13.65 5.21 0.00 49.12 1.33 353.75 (1.67)

303.89 (1.83) 17.51 0.00 14.70 2.18 0.00 35.04 1.18 374.49 (1.83)

312.540 1.370 18.59 0.00 14.970 2.260 0.00 47.230 1.070 396.660 1.370

216.472 1.450 12.109 0.000 10.942 2.307 0.000 58.024 0.745 300.599 1.45

Note: Does not include Meghalaya Coal Note: The figures in bracket indicate supply of washery middlings * Provisional Figures do not include data of export of coal .
----- x ----- x ----- x ----- 222
Ministry of Coal-Annual Report: 2006-07

Annexure-7G (Chapter 7)
ALL INDIA FIGURES OF PRODUCTION, DESPATCH AND STOCK OF COAL UPTO DECEMBER, 2006)

(In million tonnes)


Year Coking Production Non Coking 2001-02 2002-03 2003-04 2004-05 2005-06 *2006-07 (April-Dec) 28.67 30.49 29.40 30.22 31.51 20.48 293.97 306.38 326.32 347.05 375.53 274.668 322.64 336.87 355.72 377.27 407.04 295.13 29.53 30.99 30.69 30.75 30.54 20.75 Total Coking Despatch Non Coking 294.46 303.21 321.77 342.57 359.48 279.10 323.99 334.20 352.46 373.32 390.02 299.85 2.22 2.97 2.564 3.50 4.88 0.92 Total Coking Closing Stock Non Coking 15.90 16.42 18.72 20.47 29.45 1.60 18.12 19.39 21.29 23.97 34.33 29.09 Total

(i) (ii)

* Provisional (iii) Does not include Meghalaya Coal ** Stock figures are vendible ----- x ----- x ----- x -----

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Ministry of Coal-Annual Report: 2006-07

Annexure-7H (Chapter-7)
TRANSPORT OF COAL PRODUCTS (EXCLUDING COAL USED FOR COLLIERY CONSUMPTION)
Year CIL 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 (April-December) Provisional 7.27 7.69 8.00 6.86 7.34 5.18 SCCL BY BELT OTHERS 3.16 4.53 6.83 TOTAL 10.43 12.22 14.83 6.86 5.91 CIL 6.02 5.60 5.38 5.16 4.25 SCCL 0.38 0.48 0.42 0.42 0.42 0.35 BY ROPE WAY OTHERS 2.17 2.23 2.40 8.55 TOTAL 8.57 8.31 8.20 5.58 4.32 -

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

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Ministry of Coal-Annual Report: 2006-07

Annexure 11A (Chapter-11) HOUSING


Company No. of houses at the time of Nationalizat ion %-age of housing satisfaction at the time of Nationalizati on Total No. of houses available as on 31.12..2006 Houses constructed during 2006-2007 (upto 31.12.2006) Total No. of houses available as on 31.12.2005 Overall % of Housing satisfact ion

Standard ECL BCCL CCL WCL SECL MCL NCL NEC CMPDI DCC CILHQ Total 37,846 37,383 22,850 18,403 ------1,884 ------1,18,366 22.00% 21.00% 23.00% 22.00% ------42.00% ------21.07% 63,922 63,618 59,455 41,914 59,428 15,048 15,877 2324 1,256 345 123 3,22,310

Substand. 40,603 15,899 7,058 10,086 8,039 1,574 2,477 1,566 1,262 ----88,564

Total 1,04,525 79,517 66,513 52,000 67.467 16,622 18,354 3,890 2,518 345 123 4,11,874

Standa rd --------92 210 (-)242 ------60

Substand -------------------------

Total --------92 210 (-)242 ------60

Standard 63,922 63,618 59,455 41,914 59,520 15048 16087 2,495 1,256 345 123 3,23,783

Substand 40,603 15,899 7058 10,086 8,039 1,574 2,477 1,153 1,262 ----88,151

Total 1,04,525 79,517 66,513 52,000 67,559 16,622 18,564 3,890 2,518 345 123 4,11,531 100% 94.01% 100% 78.63% 79.65% 79.98% 100% 100% 79.78% 53.15% 10.87% 92.81%

----- x ----- x ----- x ----- 225


Ministry of Coal-Annual Report: 2006-07

Annexure-11B (Chapter-11)

WATER SUPPLY
Company ECL BCCL CCL WCL SECL MCL NCL NEC CMPDIL DCC CIL(HQ) TOTAL Population covered at the Population covered as on time of nationalization 31.12.2006 16,000 4,83,980 13,500 1,01,500 80,000 16,300 2,27,300 6,03,980 3,24,000 3,20,790 3,35,695 83,110 92,820 29,243 12,590 2,000 535 22,88,743

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

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Ministry of Coal-Annual Report: 2006-07

Annexure-18A (Chapter 18)


SET UP OF THE VIGILANCE ORGANISATION

Sl. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

PSUs

Executives

NonExecutives 22 24 17 12 10 12 05 04 17 44 03

Total

Eastern Coalfields Limited Bharat Coking Coal Limited Central Coalfields Limited Western Coalfields Limited South Eastern Coalfields Limited Northern Coalfields Limited C.M.P.D.I.L. Mahanadi Coalfields Limited Coal India Limited (HQ) Neyveli Lignite Corporation Coal Mines Provident Fund Organisation

13 15 20 11 12 07 07 06 12 13 00

35 39 37 23 22 19 12 10 29 57 03

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

_____________________________________ Ministry of Coal-Annual Report 2005-2006

227

Annexure-18B (Chapter 18)


Details of vigilance cases taken up for investigation inquiry, etc. During 2006-07 (upto December, 2006)
ECL (a) (i) No. of cases taken up for investigation (ii) No. of investigation completed (i) No. of cases taken up for Departmental Inquiry (ii) No. of inquiries completed No. of cases in which penalty imposed (i) Major Penalty (ii) Minor Penalty No. of officials placed under suspension No. of Regular cases registered by CBI. No. of officials transferred from sensitive posts. 40 BCCL 08 CCL 35 WCL 05 SECL 08 NCL 95 CM PDIL 02 MCL 17 CIL (HQ) 11 TOTAL FOR CIL 221 NLC 104 CMPF 05 TOTAL 330

42

03

43

06

04

46

04

12

04

164

98

15

277

(b)

10

06

06

26

02

04

07

06

67

34

05

106

08

10

16

25

04

10

02

75

30

02

107

(c )

06 04 03

19 14 03

24 43 02

08 03 01

04 03

13 -

01 -

06 14 -

01 01 -

77 84 12

09 16 -

01

86 100 13

(d)

(e)

04

04

08

04

03

06

29

01

05

35

(f)

44

354

141

48

80

95

143

905

138

32

1075

----- x ----- x ----- x ----_____________________________________ Ministry of Coal-Annual Report 2005-2006

228

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