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India’s Energy Scenario & Coal

India is currently among the top three fastest growing economies of the world. As a natural corollary India's energy needs too are fast expanding with its increased industrialization and capacity addition in Power generation. This is where 'Coal' steps in. In India coal is the critical input for major infrastructure industries like Power, Steel and Cement.

  • Coal is the most dominant energy source in India's energy scenario.
  • Coal meets around 55% of primary commercial energy needs in India against 29% the world over.
  • Around 70% of India's power generation is coal based.
  • India is the 3rd largest coal producing country in the world after China and USA.


Coal India Limited at a glance

Coal India Limited (CIL) as an organized state owned coal mining corporate came into being in November 1975 with the government taking over private coal mines. With a modest production of 79 Million Tonnes (Mt) at the year of its inception CIL today is the single largest coal producer in the world. Operating through 82 mining areas CIL is an apex body with 7 wholly owned coal producing subsidiaries and 1 mine planning and consultancy company spread over 8 provincial states of India. CIL also fully owns a mining company in Mozambique christened as 'Coal India Africana Limitada'. CIL also manages 200 other establishments like workshops, hospitals etc. Further, it also owns 26 technical & management training institutes and 102 Vocational Training Institutes Centres. Indian Institute of Coal Management (IICM) as a state-of-the-art Management Training 'Centre of Excellence' - the largest Corporate Training Institute in India - operates under CIL and conducts multi-disciplinary management development programmes.

CIL having fulfilled the financial and other prerequisites was granted the Maharatna recognition in April 2011. It is a privileged status conferred by Government of India to select state owned enterprises in order to empower them to expand their operations and emerge as global giants. So far, the select club has only seven members out of290 Central Public Sector Enterprises in the country (as on 31/03/2014, source-DPE).

Unmatched Strategic Relevance

  • Produces around 84% of India's overall coal production

  • In India where approximately 55% of primary commercial energy is coal dependent, CIL alone meets to the tune of 40% of primary commercial energy requirement

  • Commands nearly 74% of the Indian coal market

  • Feeds 98 out of 101 coal based thermal power plants in India

  • Accounts for 76% of total thermal power generating capacity of the Utility sector

  • Supplies coal at prices discounted to international prices

  • Insulates Indian coal consumers against price volatility

  • Makes the end user industry globally competitive
Thus, plays a key role in "India Growth Story" and making India incorporate globally competitive.

Mission of Coal India Limited

To produce and market the planned quantity of coal and coal products efficiently and economically in an eco-friendly manner with due regard to safety, conservation and quality.

Corporate Structure and Subsidiary Companies

Coal India is a holding company with seven wholly owned coal producing subsidiary companies and one mine planning & consultancy company. It encompasses the whole gamut of identification of coal reserves, detailed exploration followed by design and implementation and optimizing operations for coal extraction in its mines. The producing companies are:

 

  1. Eastern Coalfields Limited (ECL), Sanctoria, West Bengal


  2. Bharat Coking Coal Limited (BCCL), Dhanbad, Jharkhand


  3. Central Coalfields Limited (CCL), Ranchi, Jharkhand


  4. South Eastern Coalfields Limited (SECL), Bilaspur, Chattisgarh


  5. Western Coalfields Limited (WCL), Nagpur, Maharashtra


  6. Northern Coalfields Limited (NCL), Singrauli, Madhya Pradesh


  7. Mahanadi Coalfields Limtied (MCL), Sambalpur, Orissa


  8. Coal India Africana Limitada, Mozambique


  9. The consultancy company is Central Mine Planning and Design Institute Limited (CMPDIL), Ranchi, Jharkhand.
North Eastern Coalfields (NEC) a small coal producing unit operating in Margherita, Assam is under direct operational control of CIL.

Apart from the above, Mahanadi Coalfields Limited (MCL) has 03 subsidiary companies viz. (i) MJSJ Coal Ltd. (ii) MNH Shakti Ltd. (iii) Mahanadi Basin Power Ltd. and South Eastern Coalfields Ltd has 02 subsidiaries Companies viz. (i) Chhattisgarh East Railway Ltd. & (ii) Chhattisgarh East-West Railway Ltd.

Coal India's major consumers are Power and Steel sectors. Others include Cement, Fertiliser, Brick Kilns, and small scale industries.

MoU Excellence

For previous three consecutive years CIL has bagged 'Excellent' rating in its Memorandum of Understanding (MoU) - a negotiated contract between Government and CIL Management - for performance evaluation on key physical and financial parameters.

Production and Growth

For the first time, CIL crossed the threshold of half-a-billion tonne marks both in coal off-take & production in 2015-16. Against a coal production growth of 6.9% achieved in 2014-15, CIL achieved the growth of 9% in coal production in 2015-16. CIL's dynamic production momentum is evident from the fact that it leaped from 400 Mt. mark in 2008-09 to 538.75 Mt. mark in 2015-16 and set ambitious target to reach nearly 600 Mt. mark in 2016-17. Due to such massive growth in production of CIL, it has become possible that not a single Utility was in critical or supercritical condition for want of coal and at the same time there was decline in import of coal resulting in substantial Forex saving in 2015-16.

Two of the subsidiary companies of CIL viz. South Eastern Coalfields Limited and Mahanadi Coalfields Limited are in the elite club of 100 MTs coal producing companies.

Acquiring assets abroad

CIL is pursuing initiatives for acquiring metallurgical and high CV thermal coal assets abroad to enhance the energy security of the country. The strategic intent is to acquire, explore, develop and operate the coal blocks/mines and import the produces to India.

In spite of best efforts, realistically CIL would not be able to satiate growing demand of metallurgical coal, as well as good quality thermal coal, in the country from domestic sources due to scarce techno-economically extractable reserves of such grades. Since import of such grades of coal is inevitable, CIL, being the nation's leading energy supplier, is positioning itself in foreign coal producing countries to secure the supplies of domestically scarce grades of coal.

For this purpose, CIL is exploring options to acquire stakes in operating mines along with long term offtake rights as short term strategy and total buy out/acquire majority stake in greenfield coal assets as part of medium to long term strategy.

Transparency Initiatives

  • Introduction of E-auction for selling coal to any consumer from any location in transparent manner
    In the endeavour to extend the facility of procuring coal in a transparent manner, CIL has brought a few additional features in the e-auction process for sale of coal. Now, multiple windows are available to cater the different needs of the consumers.
  • Spot E-auction: the most liberal platform to cater needs of any Indian Buyer (viz. individual, partnership firm, companies etc.) for consumption and trading purpose within the boundary of the Country.
  • Forward E-auction: is aimed to provide exclusive access only to consumers of coal for own consumption with facility for advance plan for procurement
  • Special Forward E-auction for Power & Non Power consumers: Segment specific forward e-auction for power and non-power consumers, apart from specific end-use consumers, the windows are designed to cater the need of those whose captive coal blocks have been de-allocated by the Order of Hon'ble Supreme Court or units otherwise stranded for non-availability of linkage or for not having Power Purchase Agreements with DISCOMs and therefore, are not entitled to procure coal through FSA route, etc.
  • Introduced Integrity Pact in High Value Procurement.
  • e- procurement introduced for speeding up purchase of vital inputs

Employee Welfare& CSR

CIL's CSR Policy is framed as per notification issued by Ministry of Corporate Affairs, Govt. of India as well as DPEs guidelines and broadly covers the following:

  • Welfare measures for the community at large, so as to ensure the poorer section of the Society derived the maximum benefits.


  • Contribution to the society at large by way of social and cultural development, imparting education, training and social awareness especially with regard to the economically backward class for their development and generation of income to avoid any liability of employment.


  • Protection and safeguard of environment and maintaining ecological balance.


  • Mobile Dispensaries and wellness clinics introduced on a large scale.


  • Tele-medicine facilities introduced in central hospitals.


  • Provides medical services to employees, their families and local populace through 86 fully equipped hospitals having 5835 beds.


  • Employs 1220 specialist Doctors.


  • Runs 399 dispensaries and has 557 Ambulances.


  • Provides potable water to about 1.97 million populace in remote corners of CIL's areas of operation


  • Supports 436 schools under different categories - Project Schools (63); Privately managed Schools with grant packages (284); Private Committee Managed Educational Institutes (63) and other schools where occasional grants are given (89).


  • Introduced 'Coal India Scholarships' for 100 Below Poverty Line students plus 25 wards of land losers in government engineering and medical colleges. Scholarship covers education, hostel and mess charges


  • Meets the entire cost of wards of workmen securing admission in government engineering and medical colleges


  • Committed to generate employment opportunities for people in mining areas by providing vocational training.


  • The poor and needy Section of the Society living in different parts of India would normally be covered.


  • In respect of Subsidiary Companies of CIL, for carrying out CSR activities, 80%of the budgeted amount is spent within the radius of 25 Km of the ProjectSite/Mines/Area HQ/Company HQand 20% of the budget is spent withinthe State/States in which the subsidiary companies are operating


  • In respect of CIL (HQ), CSR is broadly executed on All India basis including the areas under Subsidiary Companies.


  • The company Pursues 'Mining with a human face' through socially sustainable inclusive model of growth by making Project Affected People stakeholders in the decision making process for their livelihood.


  • Medical facilities extended to nearby communities in fully equipped company hospitals.


  • Mobile dispensaries and Tele-medicine facilities meant for employees also extended to nearby village populace.


Care for Environment

Coal India has been playing a proactive role in environment protection so as to ensure that its mining operations are carried out in environmentally compatible manner. Committed to minimize the adverse impact of coal mining on environment through well structured Environment Management Plans and sustainable development activities. Pollution control measures are taken concurrently with mining operations for maintaining acceptable levels of major physical attributes of environment namely air, water, hydrogeology, noise, land & nearby population.

Suitable water spraying systems for arresting fugitive dust in roads, washeries, CHPs, Feeder Breakers, Crushers, coal transfer points and coal stock areas have been installed. Mist spray systems have been introduced along conveyor routes, transfer points and on bunkers. Mobile water sprinkling has been provided in all the haul roads of OC mines. Automatic sprinklers have also been installed in CHPs. Adoption of modern technologies like Surface Miners, Continuous Miners, High Wall Miners which generate lesser air borne pollution for carrying out mining activities as compared to conventional methods, since drilling & blasting is eliminated. Eco-friendly mode of transport in order to reduce the dust pollution due to road transportation are being adopted. Coal is transported by rail / series of belt conveyors to thermal power stations & rail heads are constructed to make rail head available nearer to mine to reduce road transportation. Massive tree plantation in and around mining area, controlled blasting, use of modern techniques reduce air and noise pollution.

Effluent treatment facilities for mine effluent, workshop effluent and CHP effluent like oil & grease traps, sedimentation ponds and facilities for storage of treated water and its reuse have been provided for all the major projects. Domestic waste water treatment facilities have also been provided to deal with the domestic effluent. Recharging of ground water is also taken up within mine premises as well as in nearby villages through rainwater harvesting, digging of ponds/development of lagoons, de-silting of existing ponds/tanks etc.

The level of pollutants is being monitored on routine basis as per the statutory guidelines to ascertain the efficacy of the pollution control measures being taken in the projects. Additional remedial measures are taken, if required, to keep the pollutant level within the limits prescribed by regulatory bodies. Continuous Ambient Air Quality Monitoring Stations (CAAQMS) are installed / being installed in large mines of CIL.

Technical ad biological reclamation of the mined out areas and the external overburden dumps are being taken by planting native species of plants for restoring the ecology.

For effective Bio- reclamation of used land, scientific studies are being carried out to select suitable species of plants for each coalfield and sustainable sequence of reclamation from grass to shrubs to trees for 3 tier plantation are also adopted.

As a part of 'Clean & Green' programme, massive plantation has been taken up by CIL on reclaimed back filled areas & external Over Burden (OB) dump areas, plantation in & around mines, road sides, township / residential areas, available vacant spaces and implementation of conservation plan for protection of flora & fauna are carried out . The subsidiaries of CIL have planted around 92.35 million of trees covering an area over 36896.26 ha till March 2016 which includes 1.68 million over 719 Ha.in 2015-16.

To make environmental mitigation measures more transparent, CIL introduced state-of-the-art Satellite Surveillance to monitor land reclamation and restoration for all opencast projects

CIL has started integration of Environment Management System (ISO:14001) with Quality Management System (ISO:9001) and till date have successfully achieved certification of 2 entire companies ( NCL & MCL) & 29 units with ISO 14001 and 3 entire subsidiaries ( NCL,MCL&CMPDI) & 57 units with ISO 9001. This integration is being extended to all mines in phases.