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History


History and Formation of Coal India Limited

With dawn of the Indian independence a greater need for coal production was felt in the First Five Year Plan. In 1951 the Working Party for the coal Industry was set up which included representatives of coal industry, labour unions and government which suggested the amalgamation of small and fragmented producing units. Thus the idea for a nationalized unified coal sector was born. Integrated overall planning in coal mining is a post-independence phenomenon. National Coal Development Corporation was formed with 11 collieries with the task of exploring new coalfields and expediting development of new coal mines.

Factors which led up to Nationalization of Coal Industry in India

Nationalization of coal industry in India in the early seventies was a fall out of two related events. In the first instance it was the oil price shock, which led the country to take up a close scrutiny of its energy options. A Fuel Policy Committee set up for this purpose identified coal as the primary source of commercial energy. Secondly, the much needed investment needed for growth of this sector was not forthcoming with coal mining largely in the hands of private sector. The objectives of Nationalization as conceived by late Mohan Kumaramangalam were; Conservation of the scarce coal resource, particularly coking coal, of the country by
  • Halting wasteful, selective and slaughter mining.


  • Planned development of available coal resources.


  • Improvement in safety standards.


  • Ensuring adequate investment for optimal utilization consistent with growth needs.


  • Improving the quality of life of the work force.


Moreover the coal mining which hitherto was with private miners suffered with their lack of interest in scientific methods, unhealthy mining practices etc. The living conditions of miners under private owners were sub-standard.

Formation of Coal India Limited

With the Government's national energy policy the near total national control of coal mines in India took place in two stages in 1970s. The Coking Coal Mines (Emergency Provisions) Act 1971 was promulgated by Government on 16 October 1971 under which except the captive mines of IISCO, TISCO, and DVC, the Government of India took over the management of all 226 coking coal mines and nationalised them on 1 May, 1972. Bharat Coking Coal Limited was thus born. Further by promulgation of Coal Mines (Taking over of Management) Ordinance 1973 on 31 January 1973 the Central Government took over the management of all 711 non-coking coal mines. In the next phase of nationalization these mines were nationalized with effect from 1 May 1973 and a public sector company named Coal Mines Authority Limited (CMAL) was formed to manage these non coking mines.

A formal holding company in the form of Coal India Limited was formed in November 1975 to manage both the companies.

Major Events and Milestones :

2011-12
  • Maharatna Status

    Coal India Limited was granted the 'Maharatna' status on 11 April, 2011 by the Government of India thus becoming only the 5th PSU in the country, of a total of 215 Central Public Sector Enterprises (CPSEs), to have been conferred with this status. Government of India has introduced the Maharatna scheme in February 2010 for Central Public Sector Enterprises, in order to empower the mega CPSEs to expand their operations and emerge as global giants. So far, the select club has only five members. The objective of Maharatna is to delegate enhanced powers to the Boards of the identified large Navratna CPSEs, fulfilling the specified criteria, to facilitate expansion of their operations both in domestic as well as global markets.


  • Coal India joins SENSEX

    Coal India made it to the 30-stock Sensex, on 8 August 2011, globally considered to be the barometer of the Indian economy, in short span of nine months since its listing on 4 November 2010. No other company has made it to the index in such a short time. And then Coal India's raise to the top came in just seven trading sessions since its entry to SENSEX. This is considered to be a remarkable accomplishment.


  • Most Valued Company in the country

    On 17 August 2011, Coal India emerged as the Most Valued Company in the country in terms of Market Capitalization - the pinnacle of success every business entity dreams of and aspires for. The company's value stood at a whopping Rs.2,51,296 Crores. What made the achievement all the more significant was that a public sector company could attain such lofty heights.


  • CMPDI in a gas recovery project

    Central Mine Planning and Design Institute (CMPDI) the Ranchi based mine consultancy subsidiary of Coal India Limited has been identified for participation in a Green House Gas recovery from coal mines and un-mineable coal beds and conversion to energy (GHG2E) - an EU funded Research Project from India along with Indian Institute of Technology, Kharagpur.

    The basic objective of the project is to contribute to global greenhouse gas reduction by controlling methane emission from coal mines and maximizing utilization of produced methane. Moonidih and Sudamdih mines of BCCL have been considered for taking up this research project. The total time schedule for the project is 42 months. Officials from CMPDI participated in the kick-off meeting held in Slovakia from 6th - 9th Oct.'11. A team comprising of Prof. Sevket Durucan of Imperial College of Engineering, London and Prof. K.Pathak of IIT, Kharagpur and other representatives of both the institutions visited CMPDI on 16th Nov 2011 and the matter was discussed in details regarding the implementation of the project. The team along with CMPDI officials also visited Moonidih mine and BCCL for detailed discussions. CMPDI has received an advance payment of EURO 47,867.35 for the Project.


  • Finalizes National Coal Wage Agreement IX in record time

    Coal India Limited (CIL) on 31 January 2012, finalized the wage agreement for its 3.63 Lakh strong non-executive work force by giving a 25% increase on gross wages as of 30 June 2011. The wage hike that would be effective retrospectively from 1 July 2011 is for a five-year period. With the conclusion of the wage negotiation, Coal India for the second time becomes the first Central Public Sector Undertaking in the country to successfully finalize the wage pact. The NCWA IX was concluded in a record time of only 6 months since the formation of JBCCI in August 2011. Never in the history of CIL was a wage agreement concluded so swiftly.
2010-11
  • Coal India Limited signed a Memorandum of Understanding (MoU) Ministry of Coal on 31st March, 2011 - for its key performance areas for the fiscal 2011-12. As per the MoU for the fiscal 2011-12, CIL's targeted production and coal off-take have been fixed at 452.00 Million Tonnes (MTs) and 454.00 MTs respectively for attaining an 'Excellent' rating. Incidentally for previous three fiscal years i.e 2007-08, 2008-09 & 2009-10 CIL was rated 'Excellent'.


  • Under the present MoU for 2011-12 special emphasis on Research & Development, Corporate Social Responsibility, Sustainable development & Corporate Governance have been made as major thrust areas. To attain the targeted off-take, CIL has sought 175 rakes/day for 2011-12 as against the average availability of 156.8 rakes/day & 161.9 rakes/day during previous and current fiscal years . Average growth of coal movement through Rail is only around 2 % during the last 3 years whereas CIL has envisaged a growth of around 13.5 % through rail for achieving above target.
    Since last year (2010-11) expenditure on CIL R&D activities has taken a quantum jump from 2009-10 level of around Rs 15 Crores annually to Rs.30 crores. CIL has also stepped up its target for expenditure on CSR activities in line with DPE's guideline.

  • Coal India Limited bagged a prestigious first ever international award in Geneva on 7 March 2011. CIL was conferred with the "Century International Quality ERA Award (CQE)" in the Gold Category in recognition of commitment to Quality, Leadership, Technology and Innovation. It was stated that Coal India represents success for India in the Business world. The awards were given by Business Initiative Directions (BID) - a leading private organization focused on the Quality Mix Plan.


  • Coal India Limited signed a Memorandum of Understanding with The Shipping Corporation of India Limited in December 2010 for promoting a Joint Venture Company (JVC) In order to create comprehensive end-to-end logistic solution from load port to consuming end. Currently imported coal is supplied by both private and PSU players at consuming ends, particularly to power stations, with comprehensive quality and quantity assurance, whereas, in case of indigenous coal, CIL's term of sale is Free on Rail at Colliery

    Primary objective of the JVC are

    1. Owning/chartering of vessels


    2. Draft surveying


    3. Inspection of cargo


    4. Stevedoring at unloading port in India including unloading of vessels, customs clearance, shore clearance, and stacking


    5. Indenting wagons from railways, loading of wagons, quality analysis and delivery of coal at power stations


  • 4th November was CIL share was listed at Rs.291/- and closed over Rs.342/- on the first day of trading. Most importantly, a national asset was offered to public as 'peoples' ownership' in PSUs.


  • 21 October 2010, the day CIL's IPO closed, would be etched as a historic event in the annals of Coal India Limited. The day unraveled the value and the true potential of CIL. Innumerable road shows involving count less man hours of effort across the country and in US, Europe markets had resulted in the grand success of CIL's IPO.

    CIL's IPO the largest so far in Indian capital market was over-subscribed 15.3 times. The resounding success of record shattering result of the company's public offer with the aggregate funds flowing amounted to Rs.2,35,276.55 crores which was so far unheard of in the Indian capital market. The over-subscription of the issue happened in all the three major segments i.e. Qualified Institutional Buyers (QIB), High Networth Individuals (HNI) and retail. The QIB for which there was a reservation to the extent of 50% of the net issue of the shares, the over-subscription was as much as 24.62 times. Around 784 QIB investors had put in over US dollar 38 billion i.e. Rs.1,71,469.64 crores which by itself is also an all time high in the history of Indian IPO. In the retail segment nearly 16.36 lakhs applications were received - the highest among all PSU IPOs so far amounting to Rs.63,639.26 Crores. This is also the highest so far in the Indian capital market. Interestingly, the foreign investors alone had put in around US $ 27 Billion which is equal to first ten months of FII investment in India this year.


  • CRISIL the leading credit rating agency in the country has assigned maximum grading of 5 to CIL's proposed IPO - the best for any public sector. The grading indicates that the fundamentals of the IPO are strong compared other listed securities in the country.
2009-10 Award of the Scope Excellence Award to our Company by the Standing Conference of Public Enterprises for the year 2007-08.
Establishment of Coal India Africana Limitada, a foreign subsidiary in Mozambique;
Conversion of our Company into a public limited company.
Award of 'Mini Ratna' status by the Department of Public Enterprises, GoI, to CMPDIL.
Receipt by our Company of a composite score of 1.47 and rating as "excellent" for the year 2007-2008 by Department of Public Enterprises, Ministry of Heavy Industries & Public Enterprises, GoI.
2008-09 Award of 'Navratna' status to our Company by the Department of Public Enterprises, GoI, for our operational efficiency and financial strength, which affords greater operational freedom and autonomy in decision making.
Overall production of coal by our Company and our Subsidiaries, crossed 400 million tonnes.
2007-08 Award of 'Mini Ratna' status by the Department of Public Enterprises, GoI, to CCL.
2006-07 Award of 'Mini Ratna' status by the Department of Public Enterprises, GoI, to our Company and to MCL, NCL, SECL and WCL.
Decline in debt as a percentage of net worth from 66 % in 2001-2002 to 10 % in 2006 -2007.
2005-06 Rating of 'AAA/Stable', indicating highest degree of safety with regard to timely payment of interest and principal, awarded by CRISIL in respect of the Rs. 250 million bond programme of our Company.
Introduction of sale of coal through 'e-auction method';
ECL and BCCL reported profit of Rs. 3,638 million and 2,026.67 million in Fiscal 2006.
2003-04 Overall production of coal by our Company and our Subsidiaries crosses 300 million tonnes.
2001-02 Laying down of a minimum internal rate of return of 12% at 85% capacity utilization as cut off for the development of a project.
1997-98 Corporatization of the financial flow between our Company and Subsidiaries, such that our Company is to receive only dividends under applicable policy from our Subsidiaries and the corpus of our Company was to be utilized to provide strategic support to a loss making entity only for, inter alia, maintaining their productive capital assets.
Sanction of loan of USD 1.03 billion from the World Bank and the Japanese Bank for International Co-operation for implementing 24 highly viable open case projects with global sourcing of equipments, of which USD 484.40 million was availed during the period between Fiscal 1998 to Fiscal 2004.
1996-97 Rating of 'A+', indicating adequate safety with regard to timely payment of interest and principal, awarded by CRISIL in respect of the Rs. 4,000 million bond issue by our Company.
Adoption of financial viability as the basis for approval of coal development projects.
Discontinuation of retention prices scheme and the Coal Price Regulation Account (CPRA), with the deregulation in prices of certain grades of coal.
1995-96 Approval of a financial restructuring package by the Government, whereby Rs. 8,917 million of interest liability was waived, Rs. 9,041.8 million of plan loan repayment arrears was converted to preference equity and Rs. 4,326.4 million of non plan payment arrears were allowed a moratorium for repayment and interest accrual for a period of three years, to be repaid in three equal instalments.
A profit of Rs. 6,116 million in Fiscal 1996 was earned by our Company.
1992-93 Formation of MCL as our Subsidiary to manage mines Talcher and IB valley in the state of Orissa.
1991-92 Uptrend of profit started in 1991 and our Company earned a profit of Rs. 1,670 million in Fiscal 1992.
Overall production of coal by our Company and our Subsidiaries crossed 200 million tonnes.
Fixing of coal prices once a year to compensate for increase in price of inputs on a normative cost basis, and adoption of the escalation formula prescribed by the Bureau of Industrial Cost and Prices ("BICP").
1987-88 'Blasting Gallery Method' introduced at East Katras mine under BCCL and Chora mine under ECL.
1985-86 Formation of NCL and SECL as Subsidiaries of our Company, to manage certain mines managed by WCL and CCL.
1981-82 Introduction of retention prices of coal by amending the Colliery Control Order, 1945 by notification dated March 31, 1982, in respect of our Subsidiaries.
1980-81 Construction of five new washeries: Moonidih washery, Ramgarh washery, Mohuda washery, Barora washery, Kedla washery.
Overall production of coal by our Company and our Subsidiaries crossed 100 million tonnes.
1979-80 Construction of the low temperature carbonized plant started in Dankuni Coal Complex.
The pricing policy of CMPDIL was reviewed to ensure that the company was working on a commercial line instead of working on "no profit no loss" basis.
1975-76 Change of name of our Company to 'Coal India Limited'.
Incorporation of CMPDIL, ECL and WCL, and formation of BCCL, CCL, CMPDIL, ECL and WCL, as our Subsidiaries.
1973-74 Nationalization of coal mines, in order to provide for a higher growth in coal sector to meet the growing energy needs of the country.
Incorporation of our Company as 'Coal Mines Authority Limited'.