Press Releases

Coal India Limited (CIL) has begun tranche-VII of the linkage auction to non-regulated sector (NRS) within days of completion of tranche-VI. CIL has proactively increased the tenure of fuel supply agreement (FSA) to 10 years, beginning with seventh tranche, to ensure long term assurance of coal supply through linkage auction to NRS.

For sponge iron sub-sector customers tranche-VII of linkage auction has commenced in the last week of December 2023, to meet their coal demand, even though the conversion ratio of successful bids into FSAs was low, by this sector, in tranche-VI.

“CIL is committed to supply coal to the extent of the normative requirement of all industrial sectors including sponge iron. In this endeavor regular linkage auctions, as per the government’s approved policy are being conducted for long term coal linkages”, said a senior official of CIL.

The response in tranche-VI of linkage auction for sponge iron sub-sector has been rousing with 99% of the total offered quantity of 11.05 million tonnes (mts) being successfully booked. The booked quantity was 10.98 mts.

South Eastern Coalfields Limited (SECL) and Mahanadi Coalfields Limited (MCL) between them accounted for 86% of the total offered quantity at 9.5 mts. While SECL put 7.67 mts under the linkage auction hammer, MCL chipped in with 1.83 mts. Almost the entire quantity was booked.

Out of the total successful booking of 7.64 MTs in SECL, by the sponge iron units, only 3.88 MT or 51% was converted into FSAs. In case of MCL, 1.44 MTs got converted into FSAs out of total booked quantity of 1.83 MTs. CIL extended the timeline, in order to facilitate the signing of FSAs, by 75 days over and above the norm of 90 days.

Apart from long term assurance of regular supply of coal provided through linkage auction, CIL is also conducting single window e-auction where any consumer can participate and get coal for meeting short term requirements.

Ending December of current financial year, 64 MTs of coal was offered across CIL, of which 56.7 MT was successfully booked including 17.4 MT from SECL and 15.3 MT through MCL. With increased availability of coal in the last quarter of the fiscal, offer of coal is likely to increase further under the e-auction window. CIL is aiming to put 20% of the envisaged production of this fiscal’s fourth quarter under e- auction block.

Coal India Limited (CIL) has begun tranche-VII of the linkage auction to non-regulated sector (NRS) within days of completion of tranche-VI. CIL has proactively increased the tenure of fuel supply agreement (FSA) to 10 years, beginning with seventh tranche, to ensure long term assurance of coal supply through linkage auction to NRS.

For sponge iron sub-sector customers tranche-VII of linkage auction has commenced in the last week of December 2023, to meet their coal demand, even though the conversion ratio of successful bids into FSAs was low, by this sector, in tranche-VI.

“CIL is committed to supply coal to the extent of the normative requirement of all industrial sectors including sponge iron. In this endeavor regular linkage auctions, as per the government’s approved policy are being conducted for long term coal linkages”, said a senior official of CIL.

The response in tranche-VI of linkage auction for sponge iron sub-sector has been rousing with 99% of the total offered quantity of 11.05 million tonnes (mts) being successfully booked. The booked quantity was 10.98 mts.

South Eastern Coalfields Limited (SECL) and Mahanadi Coalfields Limited (MCL) between them accounted for 86% of the total offered quantity at 9.5 mts. While SECL put 7.67 mts under the linkage auction hammer, MCL chipped in with 1.83 mts. Almost the entire quantity was booked.

Out of the total successful booking of 7.64 MTs in SECL, by the sponge iron units, only 3.88 MT or 51% was converted into FSAs. In case of MCL, 1.44 MTs got converted into FSAs out of total booked quantity of 1.83 MTs. CIL extended the timeline, in order to facilitate the signing of FSAs, by 75 days over and above the norm of 90 days.

Apart from long term assurance of regular supply of coal provided through linkage auction, CIL is also conducting single window e-auction where any consumer can participate and get coal for meeting short term requirements.

Ending December of current financial year, 64 MTs of coal was offered across CIL, of which 56.7 MT was successfully booked including 17.4 MT from SECL and 15.3 MT through MCL. With increased availability of coal in the last quarter of the fiscal, offer of coal is likely to increase further under the e-auction window. CIL is aiming to put 20% of the envisaged production of this fiscal’s fourth quarter under e- auction block.

Even as Coal India’s (CIL) supplies to the country’s power sector exceeded the projected commitment, the company supplied an all-time high volume of 98 million tonnes (mts) to non-regulated sector (NRS) consumers till December FY 2024. This converts to a whopping 23 mt increase with 31% growth over 75 mts of same period last fiscal.

With increased production and maximized supplies through all modes of despatch, CIL’s offtake to power plants of the country rose to 454 mts during April December FY 2024. This is 8 mts higher than the committed quantity of 446 mts of the period. Compared to 433 mts of April-December last year the increase is 21 mts with around 5% growth.

With all the CIL’s producing arms posting positive growth, the public sector coal miner produced 532 mts of coal at the end of the nine month period FY 2024 logging 11 % year-on-year growth. Production in volume terms rose sharply by 53 mts over 479 mts of April-December FY 2023. On progressive basis, CIL has sustained the double digit growth since July 2023.

With the appetite for coal remaining firm CIL’s total off-take rose to 552 mts with a healthy growth of 8.7% till ending December FY 2024. This reflects 44 mts higher supply compared to 508 mts of last year’s similar period. Five of CIL’s subsidiaries have checked in double digit growth.

Coal stocks at domestic coal based power plants have surged to 32 mts ending December FY 2024, about 5.6% more on comparative basis of last year.

Coal stock at CIL’s pitheads at around 50 mts as of December FY 2024 end was 56% higher than the inventory of 32 mts of same period last year providing a comfortable buffer against any sudden demand surge.

Even as Coal India’s (CIL) supplies to the country’s power sector exceeded the projected commitment, the company supplied an all-time high volume of 98 million tonnes (mts) to non-regulated sector (NRS) consumers till December FY 2024. This converts to a whopping 23 mt increase with 31% growth over 75 mts of same period last fiscal.

With increased production and maximized supplies through all modes of despatch, CIL’s offtake to power plants of the country rose to 454 mts during April December FY 2024. This is 8 mts higher than the committed quantity of 446 mts of the period. Compared to 433 mts of April-December last year the increase is 21 mts with around 5% growth.

With all the CIL’s producing arms posting positive growth, the public sector coal miner produced 532 mts of coal at the end of the nine month period FY 2024 logging 11 % year-on-year growth. Production in volume terms rose sharply by 53 mts over 479 mts of April-December FY 2023. On progressive basis, CIL has sustained the double digit growth since July 2023.

With the appetite for coal remaining firm CIL’s total off-take rose to 552 mts with a healthy growth of 8.7% till ending December FY 2024. This reflects 44 mts higher supply compared to 508 mts of last year’s similar period. Five of CIL’s subsidiaries have checked in double digit growth.

Coal stocks at domestic coal based power plants have surged to 32 mts ending December FY 2024, about 5.6% more on comparative basis of last year.

Coal stock at CIL’s pitheads at around 50 mts as of December FY 2024 end was 56% higher than the inventory of 32 mts of same period last year providing a comfortable buffer against any sudden demand surge.

Coal India’s (CIL) capital expenditure increased by Rs.741 Crores in eight months ending November FY 2024 to Rs. 10,492 Crores. This is 7.6% higher than Rs. 9,751 Crores of corresponding period last year.

“We are striving to achieve around 80% of the current financial year’s total targeted Capex of Rs. 16,500 Crores by the third quarter ending December.” said a senior executive of the company.

CIL’s intensified focus on strengthening coal evacuation infrastructure in its mining areas saw the capex under the three heads going up to Rs.3,247 Crores, representing 31% of the entire capex, till November 2023. Setting up railway sidings and corridors at Rs.1,842 Crores; Construction of coal handling plants (CHPs) and silos for mechanized transportation of coal including weighbridges at Rs. 1,292 Crores and establishing roads amounting to Rs. 113 Crores, cumulatively, made up Rs 3,247 Crores.

Capex on acquisition of land and related rehabilitation followed at Rs.2,486 Crores accounting for almost a quarter during April-November FY 2024. Procurement of heavy earth moving machinery (HEMM) reported Rs. 1,954 Crores. Diversification and joint ventures like Solar and Hindustan Urvarak Rasayan Limited and Talcher Fertilizers Limited put together made up Rs.1,040 Crores. The remaining capex heads were mine development, exploration, prospecting, ERP and other residuals.

“Land and HEMM are major Capex heads that catalyze production growth. Having a robust coal evacuation infrastructure to transport increased volumes of coal in future is a priority where we are upping investments. Capital expenditure is important for asset creation and future revenue” said the executive.

For FY 2024, as in the previous financial year, bulk of CIL’s capex is focused on the three transport infra projects. Together these heads add up to Rs.6,441 Crores out of the fiscal’s targeted capex of Rs.16,500 Crores.

CIL’s capital expenditure which used to hover between six and seven thousand crore rupees took off sharply in FY’2022 to Rs. 13,284 Crore doubling over FY 2021 level. Since then the growth curve remained steady. During three successive financial years till FY 2023, CIL’s capex exceeded the budgeted target which is a record of its own.

Capex usually surges up in the last quarter and CIL hopes to exceed this fiscal’s target as well, making it fourth year on the trot.

Sustaining the brisk output pace Coal India Limited (CIL) produced 460 million tonnes (MTs) of coal till November of the ongoing financial year. With 11.5% year-on-year growth CIL stayed ahead of the annual asking rate of 10.2%. The production saw an upsurge of 47.4 MTs in quantum terms compared to 412.5 MTs of same period last year.

All the seven coal producing subsidiaries of CIL have registered growth with two of them – BCCL and NCL achieving their respective progressive targets.

Coal output for the month of November 2023 at 66 MTs posted a growth of 8.7% over 60.7 MTs of November 2022 with 5.3 MTs increase.

Production from CIL’s top 35 mines, each having 5 MT/Year capacity and more, accounted for around 75% of the total output during April-November 2023 at 344 MTs. This is in sync with the expected contribution of these high yielding mines which CIL closely monitors.

CIL’s total supplies shot up by 39 MTs in quantum terms to 485.4 MTs during the eight month period ending November FY 2024 with 8.7% growth. Supplies were 446.4 MTs during the corresponding period FY 2023.

For the month of November 2023 coal off-take of 63 MTs was higher by 2.3 MTs compared to 60.7 MTs of November 2022.

Supplies to power sector at 398.7 MTs were18 MTs more ending November FY 2024 posting 4.7% growth even amidst the surge in power demand. During April-November last fiscal supplies to this sector were 380.8 MTs.

CIL feels confident of breaching the demand projection of 610 MTs placed on it by the Ministry of Power for the current fiscal.

In a challenge, during remaining four months of FY 2024 CIL has to grow over the high base of penultimate four months of previous financial year. All the efforts are on in this direction.

Year to date coal stock at CIL’s pitheads is at 45 MTs, which is around 58% more compared to 28.5 MTs of same period last year.

As Coal India Limited (CIL) stepped into its 49th year of formation, on 1st November, the company posted a strong 12% year-on-year production growth ending October FY 2024. CIL produced 394 million tonnes (MTs) of coal in April-October 2023 period with 42 MT increase compared to 352 MTs year ago same period. The output growth was higher than the annual asking growth rate of 11%.

“CIL has come a long way from a production of 79 MTs in its year of inception, in 1975, to 703 MTs ending FY 2023. And, we are on course in pursuit of the challenging output target of 780 MTs in the current financial year.” said CIL Chief, P M Prasad in the company’s Foundation Day event on 1st November.

Production shot up by 8 MTs in October alone to 61 MTs logging 15% growth. On a comparative basis the same in October 2022 was 53 MTs.

In the seven month span of the current financial year CIL’s supplies to power sector have risen to 346 MTs, a 15 MT increase compared to 331 MTs same period year ago, registering 4.5% growth. The quantum supplies to power sector were 4.7 MTs more than the progressive commitment of 341.3 MTs till October.

CIL feels confident of breaching the annual supply target of 610 MTs to power sector.

In the festive month of October even as the demand for power spikes up CIL’s supplies to thermal plants grew by 11% to 50.8 MTs compared to 45.8 MTs of October 2022. Increase in volume terms during the month was 5 MTs despite the rains lashing across the mines in CIL’s subsidiaries based in eastern part of the country ECL, BCCL, CCL and partly NCL during the first week of October.

CIL’s total coal off-take clocking 9.5% growth raced to 422.3 MTs for the progressive period ending October FY 2024. The supplies were 36.6 MTs higher than the year ago similar period when the off-take was 385.7 MTs.

For the month of October 2023 total coal despatch was 61.6 MTs with nearly 8 MT increase. Overall supplies registered 14.7% growth during the month compared to 53.7 MTs in October 2022.

Among the eight core sectors of the country coal production grew 16.1% year-on-year in September 2023, the highest of all the sectors. CIL’s contribution was significant in this growth.

Coal stock at CIL’s pitheads stood at 41 MTs ending October, almost 14 MTs more than the same period last year providing comfortable buffer to meet any increase in future demand.

CIL’s output up 11.3% in H1 FY 2024; supplies to power plants surge by10 MTs

Coal India Limited (CIL) produced about 333 million tonnes (MTs) of coal ending first half of the current financial year posting a strong 11.3% year-on-year growth. This was nearly 34 MTs higher compared to same period FY 2023. All CIL’s producing subsidiaries clocked growth.

Output for the month of September 2023 was 51.4 MTs, a 5.8 MTs jump or a growth of 12.6%. CIL produced 45.7 MTs during the same month last year.

Even as the power demand hit an unprecedented high in the past two months with mercury rising, CIL’s supplies to power sector rose to 294.8 million tonnes (MTs) ending first half of FY 2024. The supplies were 1.8 MTs more than the 293 MT demand projected for this period. Compared to a high base of last fiscal’s same period, the volume increase was 9.7 MTs or a 3.4% growth. This could have been even higher if the logistics were eased out and intake not regulated by few consumers.

“We were given a supply target of 610 MTs to power sector for entire FY 2024. This is about 4% higher than the record level of 586.6 MTs that was supplied in FY’2023. We met the prorated demand of coal fired plants till September end and expect to meet the annual demand as well” said a senior official of CIL.

CIL’s total supplies shot up to 360.7 MTs during H1 of FY 2024 ahead by 28.6 MTs with 8.6% growth compared to 332 MTs of year ago same period. Logging a double digit growth of 12.6% in the month of September 2023 coal supply at 55 MTs increased by 6.1 MTs compared to year ago same month..

After meeting the requirement of the power sector, CIL’s supplies to non-power sector during the first six months of FY 2024 peaked to 65.7 MTs clocking 40% growth. The increase in absolute terms was nearly 19 MTs compared to 46.8 MTs during the first half of FY 2023.

As of September end FY 2024 the coal stock at CIL’s pitheads was 41.6 MTs.

In a push towards eco-friendly coal transportation Coal India Limited (CIL) has planned a capital investment of around Rs. 24,750 Crores in the next few years on 61 First Mile Connectivity (FMC) projects. To come up in three phases, these projects combined will have a capacity of 763.5 million tonnes per annum (MTPA) when completed.

FMC projects involve transportation of coal in mechanized piped conveyors from production point to coal handling plants/silos with rapid loading system where coal is loaded directly into rail wagons.

“It is essential that coal transportation is environment friendly to improve the quality of life of people living in the proximity of coalfield areas. FMC projects offer benefits like suppression of dust pollution and carbon emissions. They also reduce the load on road transportation leading to safety. Other benefits include precise quantity and quality coal is loaded for consumers with minimal manual intervention” said a senior CIL official.

35 FMC projects under the first phase having 414.5 MTPA capacity account for Rs. 10,750 Crores. 8 projects of 112 MTPA capacity are already operational. CIL is gearing up to commission 17 more projects of 178 MTPA by FY 2024 end. The rest 10 comprising 124.5 MTPA capacity are expected to be operative by FY 2025.

The second and third phase projects account for 9 and 17 respectively. While their respective evacuation capacities are 57 MTPA and 292 MTPA, the investments sequentially, would be about Rs. 2,500 Crores and Rs.11,500 Crores.

Under the second phase 5 projects of 21.5 MTPA capacity under construction are expected to be commissioned by FY 2025. Remaining projects are in different stages of progress with tenders issued and bid document under preparation.

For the third phase, tenders have been floated for 3 projects of 65 MTPA capacity. 9 projects are to be executed through mine developers and operators. Phase three projects are anticipated to be commissioned by FY 2029.

Initially, CIL targeted coal mines having production capacity of 4 MTPA and above under first phase. After a pilot study conducted through NEERI on potential advantages of FMC projects, in two major OC projects, reflected sizable reduction in CO2 emissions, air pollutants, ambient noise levels and significant savings in diesel costs, CIL expanding the ambit included mines producing 2 MTPA and above in subsequent two phases.

Total eco-friendly coal evacuation would go up to 914.5 MTPA when all the 61 projects become operational by FY 2029, including the earlier capacity of 151 MTPA.

Sustaining its production pace, Coal India Limited (CIL) produced 52.3 million tonnes (MTs) of coal in August 2023 registering a strong 13.2% over 46.2 MTs of August 2022. Comparative production for the month surged ahead by 6.1 MTs.

Staying on course with the annual asking growth of 11%, till August FY 2024, the state owned coal miner produced 281.5 MTs posting 11.1% year-on-year growth. The volume expansion in production was 28.2 MTs during the first five months of FY 2024 compared to 253.3 MTs during the same period FY 2023.

Total coal supplies to all consuming sectors shot up to 59 MTs in August 2023 reflecting a strong double digit growth of 15.3% compared to 51.2 MTs of same month last fiscal. Supplies were up nearly 8 MTs in a single month.

During April-August 2023 total coal off-take rose to 305.5 MTs with around 8% growth with a 22.4 MT gain over same period last year, when the off-take was 283.1 MTs.

CIL continued to pump higher quantities of coal to non-power sector (NPS) as supplies to them recorded a robust 61% growth at12.1 MTs in August 2023. This was a jump of 4.6 MTs compared to 7.5 MTs in August 2023.

Progressive till August FY 2024 supplies to NPS grew by 43.4% to 56.8 MTs. This represents an increase of 17.2 MTs in the first five month period of FY 2024 compared to 39.6 MTs of same period previous fiscal.

Not only CIL is meeting the strong demand of NPS currently, the company is also liquidating the backlog.

CIL’s supplies to power sector at nearly 47 MTs increased by 3.4 MTs in August 2023. The growth was nearly 8% compared to 43.6 MTs of same month last year.

CIL’s supplies to power sector during August 2023 were higher than committed quantity. Against the commitment of 1.44 MTs per day the company supplied 1.515 MTs per day.

During April-August 2023, the coal fired plants of the country received 248.7 MTs of coal from CIL sources posting a 2% comparative growth. Supplies to power sector were 243.5 MTs in April-August 2023.

Coal inventory at CIL’s pitheads stood at a comfortable 45.3 MTs as of 31 August, higher by 46% compared to 31 MTs of coal stock same date last year. This helps in meeting any sudden demand upsurge from power sector.

With Coal India Limited (CIL) continuing to invest heavily in evacuation infrastructure, land, and mining machinery the company’s capital expenditure at Rs.4,700 Crores ending July FY 2024 clocked 8.5% year-on-year growth.

The capex utilization during the referred period was nearly 100% of the progressive target of Rs.4,754 Crores and 28.3% of annual target of Rs.16,600 Crores of FY 2024.

Typically the capex starts slow in the first quarter with the company laying out the expenditures plans at the beginning of the fiscal and gradually builds up in the subsequent quarters. What makes the 8.5% capex growth in April-July FY 2024 significant was it came over a high base of Rs.4.332 Crores of same period FY 2023, the year when CIL’s capex peaked to an all-time high of Rs.18,619 Crores.

“At a time when the Centre has been directing the CPSEs to scale up their capital expenditure for economic revival, CIL in a span of three years has stepped up its capex by three fold or 197%. From Rs.6,270 Crores in FY 2020 the capex shot up sharply to Rs.18,619 Crores in FY 2023” said a senior official of CIL.

Land was the major expenditure head at Rs.1,311 Crores accounting for 28% of the total capex spend of April-July 2023. This was closely followed by the procurement of heavy earth moving machinery that took up Rs.1,083 Crores or 23%.

Land acquisition and strengthening the modernized mining fleet are twin essentials for sustaining the production tempo especially when the company is faced with stiff targets.

Capex on construction of rail sidings and rail corridors and coal handling plants and silos, for faster evacuation of coal, was Rs.664 Crores and Rs.572 Crores respectively.

Underscoring the company’s resolve to shore up evacuation infrastructure the budgeted provision for construction of rail sidings and corridors at Rs.4,169 Crores is the highest among the capital expenditure heads for entire FY 2024.

For land acquisition a total amount of Rs. 2,907 Crores was identified for the ongoing fiscal year. While construction of CHPs/Silos is pegged at Rs.2,174 Crores, procurement of HEMM would take up Rs. 1.965 Crores in FY 2024. Rest would be on other heads like plant and machinery; solar projects, JVs and coal washeries.

“Our production is poised to increase substantially in the ensuing years and it is vital to align it with seamless coal transportation. This necessitates heavy investment in coal evacuation infrastructure and first mile connectivity projects with CHP/silo combination”, said the official.

Sustaining its production pace Coal India Limited (CIL) at 53.6 MTs posted 13.5% growth in July’23 over last year’s July. The output leapt by 6.3 MTs compared to 47.3 MTs production of July 22. CIL’s production soared to 229.1 MTs ending July of the current financial year achieving 99% target satisfaction. The pace is on track with the asking growth rate of the year. Marking a whopping 22 MTs increase in volume terms CIL logged 10.7% production growth compared to 207.1 MTs of April-July 2022. CIL’s chase of 780 MTs production in FY 2024 began with an asking growth rate of 10.9% over 703 MTs that the company produced in FY 2023. “All our subsidiaries have registered growth over previous FY with SECL coming back strongly with close to 10 MT production increase. BCCL, NCL, WCL and SECL have sailed past their respective targets till July 2023” said a senior official of the company. CIL’s total supplies peaked to 59.5 MTs in July 23 posting a strong 9.3% growth over 54.5 MTs of July 22. Increase in absolute terms was 5 MTs. Supplies to all consuming sectors were up at 246.5 MTs during April-July’23 clocking 6.2% growth over a high base of 232 MTs of same period last fiscal. Supplies on a yearon-year basis have witnessed 14.4 MTs expansion during the first four months of the financial year in reference. With no letup in the momentum set into motion since the beginning of the current fiscal, CIL continues to pump higher volumes of coal to non-power sector (NPS), which at 11.5 MTs in July’23 grew by a robust 59%. Comparatively they were 7.1 MTs in July’22. In the month alone supplies to this sector went up by 4.5 MTs. Supplies to NPS in April-July 23 grew by a strong 40% to 45 MTs compared to 32 MTs of same period last year. With supplies to power sector stabilized and no pressure of criticality at plants the company could meet the demand of NPS sector. CIL supplied 201.5 MTs to the coal fired plants of the country till July of the ongoing fiscal year with a comparative growth of 1%. Providing a comfortable buffer to domestic coal based plants coal stocks at their end stood 33 MTs as of July end. This is almost at par with the beginning of the year with not much contraction. Coal inventory at CIL’s end is 52 MTs. All time high removal of over burden gives CIL a leg up for future production, which at 632.2 Million Cubic Metres, has achieved 110% target satisfaction with 31% y-o-y growth.

Strengthening its network of eco-friendly coal transportation, Coal India Limited (CIL) has initiated 17 more first mile connectivity (FMC) projects under phase-III. At an estimated cost of Rs.11,000 Crores these projects have been planned for a loading capacity of 317 million tonnes per annum (MTPA).

CIL is preparing a rollout plan to float tenders for the latest projects by FY 2025. Commissioning would be in two years thereon by FY 2027. These are in addition to existing 44 such projects that the company is actively pursuing under two phases.

Catalyzed by positive results shown by a pilot study, in two of its OC mines, on environmental and economic benefits of loading through FMC projects CIL is pursuing this mode actively. Results have indicated significant reduction in particulate matter, CO2 and other gaseous emissions compared to despatch through rail sidings.

Of the identified 17 projects MCL and CCL would put up 6 each followed by SECL with 3 projects. WCL and BCCL would have a solitary project each.

It is significant that MCL, CCL and SECL account for 15 of the upcoming projects. The present projection indicates that between them they would contribute to the bulk of future production at more than two-thirds of CIL’s total.

“We have expanded the scope of loading through FMC projects. Now, every coal project having production capacity of 1 MTPA and more would move coal through FMC mode. This is subject to techno-economic viability and the 17 projects have been identified under this criterion” said a senior official of CIL. Under phase-I, only those projects having 4 MTPA output capacity were included for FMC mode evacuation.

The company is also supplementing FMC projects by dovetailing 12 rail connectivity projects with them at an estimated cost Rs.1700 Crores. The plan is to commission rail connectivity by FY 2027 when Phase III projects are expected to turn operational.

24 rail connectivity links have already been identified for 35 Phase I FMC projects at a Capex of Rs. 3660 Crores. Of these 4 are already commissioned and 20 under construction.

Including the existing 151 MT FMC evacuation capacity, all projects under three phases are aimed at transporting 940 MTs of coal through environment friendly transportation system. The loading capacity of 35 Phase I FMC projects and that of 9 Phase II projects is 415 MTs and 57 MTs respectively.

“Carbon footprint suppression would be sizeable when FMC projects are implemented at full capacity” said the executive.

Giving a boost to its solar power initiative Coal India Limited (CIL) on Thursday signed a memorandum of understanding (MoU), for setting up 1,190 MW solar power project, with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL), the power generator of Rajasthan state.

This is CIL’s first of its kind MoU for a solar power project with any state government.

Aimed at an estimated cost of approximately Rs.8,000 crores, CIL’s solar power project is slated to come up in RVUNL’s 2,000 MW solar power park at Bikaner, in a phased manner, in the sunny state of Rajasthan.

The solar park is approved under Ministry of New and Renewable Energy’s scheme of Ultra Mega Renewable Energy Power Parks.

The pact was inked by Dr. B Veera Reddy, Director Technical (CIL) and Mr. Rajesh Kumar Sharma, CMD, RVUNL in Jaipur. Present during the formal signing event were Shri Pralhad Joshi, Hon’ble Minister of Coal, Mines and Parliamentary Affairs, Shri Ashok Gehlot, Hon’ble Chief Minister, Rajasthan, Smt. Usha Sharma, Chief Secretary, government of Rajasthan and Mr. Pramod Agrawal, Chairman, (CIL).

While the Rajasthan government would ensure handing over the possession of encumbrance and encroachment free land to CIL, the coal behemoth would set up the solar project on the allocated land. The aim is to kick start the solar project in 24 months.

This is CIL’s biggest ever solar power project planned till date almost 40% of its ambitious plan of establishing 3,000 MW capacity solar projects by FY 2023-24 under its net zero energy initiative.

The final implementation and investment plans would be worked out as the project progresses in phased manner. Grid connectivity would be facilitated by RVUNL.

CIL has awarded 265 MW of solar power projects so far with 35 MW more to be concluded by the month end which would make a total of 300 MW. The company has drawn up a target of adding 1200 MW more in the ensuing financial year 2023-24.

Continuing to maintain the double digit growth streak in production, beginning FY’23, Coal India Limited (CIL) closed the first half of the current fiscal producing 299 million tonnes (MTs).

This is a sharp upward swing of 49 MTs the highest incremental growth for any period. Compared to 250 MTs of H1 last year, the growth was 19.7%. All CIL’s subsidiaries recorded growth with BCCL topping at 31.3%.

Achieving nearly 43% of the fiscal’s 700 MT production target in six months CIL is aiming to close on the rest in the second half. Customarily, CIL’s H2 production yield is much higher than the H1.

The coal major’s total coal off-take at 332 MTs in April-September’22 surpassed the target, achieving 101.7% satisfaction. CIL supplied 24 MT more coal compared to 308 MTs of same period last year at a growth of 7.8%.

Supplies to power plants, buoyed by increased production and higher loading, have risen sharply to 285.5 MTs in H1 FY’23. The year-on-year jump is 41 MTs logging 16.8% growth. CIL’s supplies stood at 244.5 MTs in H1 FY’22.

On an average loading to power sector was up by 56.5 rakes per day from CIL’s sidings, goods sheds and private washeries during April-September’22. Total loading to thermal plants at 300 rakes per day posted 23.2% growth against 243.5 rakes of last year same period. Of this, loading from CIL’s sidings was 85% or 254.3 rakes.

Dispelling coal shortage apprehension during the festive season there is sufficient coal stock at CIL’s pitheads and at power plants.

As of September end (till 29th) coal inventory at domestic coal based plants stood at 24 MTs with bulk of the stock boosted by CIL’s supplies. The stock is up by 2.4 fold compared to 10 MTs of September’21 when a sudden spike in generation pushed up the coal demand. Ending September CIL’s pitheads have a stockpile close to 28 MTs.

“Now adequate coal stocks are within reach. Production also increases from October onward. There is no cause for shortage apprehension”, said a senior official.

CIL’s output for September’22 at 45.7 MTs witnessed 12.3% growth. Increase in absolute terms is 5 MTs compared to 40.7 MTs of same month last year. Supply to power sector in September rose to 42 MTs compared to 39.3 MTs registering 7% growth.

In a historic high, Coal India’s (CIL) production increased by 44.6 million tonnes (MTs) in just 5 months and 4 days of the ongoing fiscal, as of 4 September eclipsing the previous best of 44.5 MTs registered in FY’16, which though was for the entire year.

The record milestone was achieved when CIL’s progressive production touched 259.6 MTs on 4 September’22 of the current fiscal, compared to 215 MTs same date last year.

“What makes the achievement standout is that CIL accomplished the absolute growth of 44.6 MTs in production in only a span of 5 months and 4 days of the current fiscal whereas the earlier high of 44.5 MTs was for the full fiscal of 2015-16”, said a senior executive of CIL.

Pursuing 700 MT production target in FY’23 CIL began the chase with an asking growth rate of 12.4% which, on the back of a strong output performance, slid down to 8% as of now. All the subsidiary companies of CIL have posted growth over last year.

CIL usually produces higher volume of coal during the second half of the financial year than in the first half. Of the 700 MT target of FY’23 the production split is around 44% for the H1 and 56% for the H2.

At the current pace of production, if CIL’s mining areas are not excessively affected by heavy seasonal deluge in September, the company is hopeful of reaching close to the apportioned H1 target of 306 MTs.

Coal India’s (CIL) supplies to power sector at 243.3 million tonnes (MTs) achieved 108% of annual action plan (AAP) target of 225.4 MTs, progressive till August FY’23. Supplies overshot the target by nearly18 MTs.

The company also breached its AAP target of 276 MTs for total off-take achieving 102.5% satisfaction. Total supplies have risen sharply to 283 MTs, during the period under reference with a jump of 7 MTs over the target.

CIL’s supplies of 243.3 MTs to power sector during April-August’22 were 38.1 MTs more compared to same period last year posting a double digit growth of 18.6%. Supplies were 205.2 MTs for the same period last year.

At 283 MTs total coal off-take of the company, progressive till August’22 of current fiscal, increased by 23.6 MTs in volume terms against 259.4 MTs of last year. The growth is 9.1%.

Diminishing fears of coal shortage, coal stock at power plants is close to 30 MTs, including imported coal, ending August 22 (till 29th). This is substantially higher than 12.8 MTs of August ’21 when the stock plummeted by 11.2 MTs in a month.

Improved supplies from CIL helped the stock stabilizing at power plants. Closing stock for the month of August’22 is a six year high barring 2020 when pandemic fuelled slowdown saw the stock at 37.7 MTs.

Producing 253.3 MTs of coal during April-August’22 CIL logged a double-digit year-on-year growth of 21%. This is a strong 44.1 MT increase in absolute terms against 209.2 MTs of last year’s same period.

This level of increase was achieved despite increased downpour across all the areas of WCL and MCL. WCL on an average received 54% more rainfall since 1st June till August end during the ongoing fiscal, for a similar period of last year, while the rainfall was 57% more in the areas of MCL.

Amidst this, CIL’s production for August’22 posted 8.5% growth at 46.2 MTs. This is a jump of 3.6 MTs compared to 42.6 MTs of August’21.

Total coal off-take of 51.1 MTs for the month of August ’22 has also surpassed the AAP target of 47.5 MTs which is an achievement of 108%. Compared to 48.6 MTs of August’21 the growth is 5%.

In August’22 CIL supplied 43.8 MTs of coal to thermal power plants posting 16% growth against last year’s 37.8 MTs.

With a coal stock of 31 MTs at CIL’s pitheads, around 30 MTs stock at power plants, and a little over 10 MTs at CIL’s sidings, goods sheds, private washeries, ports, captive plants there is sufficient availability of coal in the system.

Mr. Debashish Nanda, on 16 August 2022, took over as non-executive Chairman of Hindustan Urvarak and Rasayan Limited (HURL) the environment friendly, energy efficient fertilizer manufacturing company.

Mr. Nanda is a full-time Director (Business Development) of the Maharatna coal mining behemoth, Coal India Limited (CIL), the world’s largest coal producing company.

Mr. Nanda’s tenure at the apex post of HURL is for a period of three years. He replaces Mr. S M Vaidya, the current Chairman of Indian Oil Corporation Limited.

HURL came into being in June 2016 as a joint venture consortium of five PSUs of the country to supply and complement the urea requirement of the farmers in eastern and northern parts of the country. This is to be achieved through establishing and operating three natural gas based ammonia-urea fertilizers complexes.

CIL, NTPC Limited and IOCL are the lead promoters of HURL holding a total of 89% equity among them on equal partnership of 27.67% each. Fertilizer Corporation of India Limited and Hindustan Fertilizer Corporation Limited make up for the remaining 11% share.

The authorized capital and paid-up capital of HURL was Rs.8,000 crores and Rs.5,827.48 crores respectively as of 1 June 2022.

Each of the three fertilizer plants of Gorakhpur (UP), Sindri (Jharkhand) and Barauni (Bihar) would produce 2,200 metric tons/per day capacity of ammonia and 3,850 metric tons/per day capacity of neem coated urea.

Earlier the cabinet committee of economic affairs has cleared the decks for the revival of these units through the consortium.

Gorakhpur plant has already become operational in May 2022, while Sindri and Barauni are expected to go operational during the current year.

Natural gas which is the feedstock of the plants would be supplied by gas pooling mechanism at a uniform delivered price to all the fertilizer plants on gas grid for production of urea.

Coal India Limited (CIL) produced 207.1 million tonnes (MTs) of coal during April-July’22, which is 40.5 MTs more than what was produced a year ago same period, the highest ever for this period. This is a 24.3% growth compared to 166.6 MTs of April-July’21.

For the month of July’22 CIL produced 47.3 MTs of coal, a 4.7 MT jump over 42.6 MT of previous year’s July logging logged 11% output growth, maintaining the double digit streak for the fourth month on trot this fiscal, despite the monsoon slowing down its production.

Amid the escalated demand from power stations during the fiscal year, CIL supplied 199.4 MTs to this sector progressive till July’22 posting a robust 19.2% growth. This is a 32 MT increase in absolute terms compared to167.3 MTs supplied in April-July’21.

CIL’s supplies to coal fired plants during the referred period were at par with the enhanced requirement projected.

The company logged a year-on-year supply growth of 19% in July’22 to power plants at 47 MTs.

Total coal off-take by CIL grew by 10% during the first four months of FY’23 at 232 MTs compared to 211 MTs year ago same period. The volume expansion was 21 MTs.

For July’22 CIL’s total off-take reached 54.5 MTs clocking 8% growth notwithstanding the monsoon, against 50.4 MTs of previous year’s July.

As of 30th July’22 total coal stock at CEA monitored thermal plants was 29.6 MTs. Higher supplies from CIL helped build stock at power plants to the tune of 1.04 Lakh tonnes per day during July’22, the highest for this fiscal.

Coal inventory at CIL’s pitheads stood at 36 MTs at the closure of July’22. Around 11.5 MTs of coal is available at various loading points awaiting shipment.

The current coal stock situation is comfortable to meet the present trend of demand, if there is no sudden generation spike as witnessed in August’21 when stock at power plants plummeted by 11.2 MTs in a month.

With 6 MT, on tap, coal import orders in place, with scalable option upto 12 MTs, CIL is closely monitoring the supply situation to power plants to handle surge in demand.

Under its corporate social responsibility banner, Coal India Limited (CIL) has entered into a memorandum of understanding with Institute of Neuroscience, Kolkata (IN-K) for a Rs. 10 Crore contribution to procure the-first-of-its kind ‘Gamma Knife Equipment’ in entire eastern India.

Such equipment is available only in few centres across the country. CIL would be bearing 25% of the total cost which is around Rs. 40 Crores.

The equipment would be deployed at IN-K, a leading super speciality institute in advanced neurological care, which provides affordable treatment including free and subsidised treatment to the underprivileged. It is a public private partnership (PPP) project of Kolkata Municipal Corporation and Neurosciences Foundation, Bengal.

Once, the installation is complete patients requiring brain related treatment need not move out of Kolkata but can be treated in IN-K.

“Coal India is pleased to be associated with such a patient welfare activity with an institute that lends help to the needy in Kolkata” said an official of CIL.

Gamma Knife, also called Sterotactic Radiosurgery, is a type of radiation used for treatment of brain tumours and other abnormal conditions of the brain.

Precision and non-incision treatment are twin advantages of Gamma Knife over other conventional neurological care treatments. Another important advantage is that it can target tumours, lesions deep in the brain that cannot be safely reached by traditional surgery.

“CIL has supported close to Rs.32 Crore worth of health care projects in Kolkata under its CSR umbrella during the last five years” said the official.

Sustaining its growth in capital expenditure (capex) for the ninth quarter on the trot, Coal India Limited (CIL) achieved a sturdy 65% growth in the first quarter FY’23 over comparable quarter last year.

CIL’s capex jumped to Rs.3,034 Crores during April-June’22 compared to Rs.1,841 Crores of April-June’21 resulting in a sizeable Rs. 1,193 Crore volume increase.

“The capex increase came on the back of a strong spending in acquiring land and strengthening transport infrastructure in our coalfields under first mile connectivity projects. These two vital areas help CIL in expanding its mining operations for accelerated production and pairing it with seamless transportation of coal”, said a senior official of the company.

Land acquisition at Rs.608 Crores accounted for nearly one-fifth of the first quarter’s total capex basket. This represents close to 2.3 fold increase compared to Rs. 268 Crores spent under this head during April-June’21. The expenditure was spread across all the subsidiaries of CIL.

Capex under FMC projects, on construction of coal handling plants, silos including weighbridges totaled to Rs. 577 Crores during the quarter under reference. This is a four-fold increase compared to Rs.141 Crores spent in Q1 of last financial year.

Rail sidings and laying of rail corridors took up Rs.571 Crores during Q1 FY’23 clocking 57% growth. On a like to like comparison the expenditure under this head was Rs. 363 Crores.

Both the evacuation logistics projects put together at Rs. 1,148 Crores accounted for more than one-third or 38% of the total capex of Rs. 3,034 Crores of the first quarter.

Another significant capex head was joint ventures, Hindustan Urvarak Rasayan Limited and Talcher Fertilizers Limited which consumed Rs. 518 Crores. HURL’s Gorakhpur plant has already started the production whereas Sindri and Barauni plants will become operational during the fiscal.

“CIL’s production tempo is keeping up a consistent double-digit growth in FY’23 so far and all efforts are on to continue the trend. What assumes importance is to have a matching evacuation infrastructure that can handle transportation of the increased output”, said the executive.

Even during Covid-19 slowdown CIL’s capex spending witnessed steady quarter wise increase.

In Coal India’s (CIL) two medium term tenders (MTT), of 3 million tonne (MT) each, which invited bids for import of coal from overseas, an Indonesian company P T Bara Daya Energi (PTB) has quoted the lowest rate emerging as L1 in both the tenders.

The L1 bidder is one of the companies in the consortium which include of GHV (India) Private Limited and Delta Infra Logistics (Worldwide) Limited.

PTB’s L1 rate for discharge of 3 MTs of coal in the eastern ports of the country was Rs. 4,331.78 Crores against the bid amount of Rs.5,080.13 Crores of Adani Enterprises Limited. (AEL)

In terms of rate per tonne of coal this coverts Rs. 14,439.26 at eastern ports, which is 17.78% lower than what was quoted by Adani’s under this segment.

For discharge of coal at western ports of India, for 3 MTs, PTB quoted Rs. 4,497.57 Crores pipping AEL’s quote of Rs. 5,053.28 Crores. Under this bid, cost per tonne of coal works out to Rs. 14,991.90, which 12.36% lower compared to the nearest competitor, AEL.

The L1 rate quoted in both the MTTs is for Free on Rail and does not include railway freight to the destination, GST compensation cess and GST on railway freight.

Earlier, in CIL’s short term tender for coal import of 2.416 MTs Adani Enterprises Limited emerged as successful bidder quoting the lowest at Rs. 4,033. 70 Crores.

As directed by government, CIL has invited three international competitive bids for sourcing 5,000 GAR (gross as received) quality of thermal grade coal from abroad, on behalf of State of Gencos and independent power plants.

CIL’s Board in a meeting held today has given its nod for awarding the work to the successful bidders.

Whereas, the short term was indent based, the two medium term tenders were for keeping coal on tap for immediate availability and use as and when required.

Continuing to accelerate its production pace during the ongoing fiscal year, Coal India Limited (CIL) ended April-June quarter FY’23 capping a historic high of 29% output growth, compared to same quarter FY’22.

CIL produced 159.8 million tonnes (MTs) of coal as of Q1 end, which is 35.8 MTs more than the 124 MT output of April-June’22. All the coal companies of CIL have registered growth.

“The likeness of such whopping growth was never witnessed in any Q1 since CIL’s inception. Our first quarter production surge of nearly 36 MTs surpassed the entire annual increase of 26.4 MTs of FY’22” said a senior official of the company.

Only twice before, CIL’s total yearly production was higher than what it achieved during the current year’s first quarter alone.

In its bid to achieve the fiscal’s 700 MT output target CIL began FY’23 with an asking rate of 12.4%. The steep production gain of Q1 helped the company bring down the asking growth rate to 8.3%. Increased production enables better stock build up.

Coal output for June’22 at 51.6 MTs also registered an unmatched 29% growth with volume increase of 11.5 MTs. CIL produced 40 MTs in June’21.

With the coal demand from power plants reaching a higher pitch, CIL’s supplies to power sector peaked to a new high of 153.2 MTs during the quarter registering a strong growth of 19.8%. The expansion in absolute terms was a robust 25.3 MTs over 127.9 MTs of last fiscal’s Q1.

CIL on an average supplied 1.684 MTs of coal per day to power sector during the quarter ended June’22 against requirement of 1.650 MTs per day, resulting in 102% materialization.

In June’22 supplies to coal fired plants have gone up to 1.713 MTs per day against projected requirement of 1.6 MTs resulting in 107% materialization.

CIL’s offtake to power sector, during June’22, clocked a sharp 27% growth at 51.4 MTs. This is 11 MT jump compared to 40.4 MTs in June’21. Higher supplies during the month resulted in coal stock accretion to the tune of 77,000 tons per day at power plants end.

Total coal off-take of 177.6 MTs during the quarter ended June’22 posted nearly 11% growth. Increase in absolute terms was 17.3 MTs compared to offtake of was 160.3 MTs in April-June’21.

CIL’s total off-take for June’22 clocked 15.4% growth at 59 MTs. The increase was 7.8 MTs compared to 51.2 MTs in June’21.

Coal India Limited (CIL) held three pre-bid meetings on 14th and 17th June with prospective coal importing agencies evincing interest in pitching in, in the three international competitive bidding e-tenders that the company had floated earlier in the month for import of coal. The overseas sourcing of coal by CIL was as directed by the government.

The meetings were scheduled to help the bidders keen on competing in the process, gain a better understanding of the bid document, scope of work and its finer shades and importantly iron out the crimps.

A total of eleven coal importers joined the session with CIL officials. The prominent Indian agencies among them were Adani Enterprises Limited, Mohit Minerals and Chettinad Logistics Private Limited. Couple of coal exporting agencies from abroad also have shown interest including one from Indonesia.

Important amendments in the tender that the bidders requested were, narrowing the time window of the bid price validity from 90 days to 60 days.

Another was fixing time period for the supply of the first tranche of shipment, from the date of letter of award, between 4 and 6 weeks. Earlier, the supply schedule was based on a particular percentage of delivery in each of the months of the second quarter of FY’23.

Taking cognizance of their requests favorably, CIL amended the bid document and a corrigendum has already been floated on e-procurement portal to hasten the process without any bumps.

For the coal that lands on the Indian shores coal quantity assessment and quality testing shall have to be done through CIL’s empaneled third party sampling agencies.

CIL had previously floated a short term indent based international competitive bid for 2.416 million tonnes (MTs) of coal to source coal from overseas on behalf of State gencos and Independent Power Plants (IPPs) for blending with the domestic coal.

Close on the heels of this, two more medium term tenders for sourcing 3 MT each at the western and eastern ports of the country were floated to keep coal on tap for immediate availability and future use.

Last date for receipt of bids for short term tender is 29 June while that of medium term is 5 July.

Coal India Limited (CIL) is taking a close look on green mining options in a bid to minimize adverse environmental impact by leveraging a slew of eco-friendly technologies in its UG and OC mines.

With land turning out to be a major pain point for expansion of coal mining operations these technologies bypass land acquisition and avoid its degradation. The locked up coal assets left out earlier due to techno-commercial and safety concerns can now be unearthed through these technologies.

CIL is exploring ramping up its UG production by four-fold to 100 million tonnes (MTs) by FY 2030 from 25.6 MTs in FY’22. UG output is environmentally clean, minimally invasive on land degradation, society friendly. Around 70% of the country’s coal reserves are conducive for UG mining.

The aim is to make UG production sizably supplement the OC output. At current rate, mineable coal reserves at existing OC will slowly start lowering.

Among mass production technologies, CIL will introduce 50 continuous miners by FY’25 with peak production potential of 25 MT/Y. 21 such machines are already deployed in ECL, CCL and SECL producing 9 MTs/Y.

Two powered support long wall (PSLW) machines operating in ECL and BCCL produced 1.58 MTs in FY’22 against 1.13 MTs in FY’21 posting 40% growth. Two more PSLWs with a total capacity of 4.5 MT/Y are soon to be deployed in BCCL.

In a first, CIL is aiming to mine coal through punch entry in those OC mines which have reached their ultimate pit level. This could be done through a mix of technologies. CIL plans to identify and implement 5 such mines through punch entry in phased manner till FY’24. So that mineable coal assets can be extracted with economic viability.

CIL is planning to deploy 10 High Wall machines in its OC mines during the ongoing fiscal with projected production potential of 5 MTs/Year. With one such project already operational in SECL three more will soon be functional in ECL. One Highwall machine entails a capex of Rs.200 Crs.

Since nationalization in 1975, UG output contracted by 57.7% till FY’22 while OC production expanded by 8.5 times.

What tilted the scales against UG mines was loss incurring production, longer gestation period, lack of skilled labour, unavailability of indigenous equipment, and departmental production cost being high. With multiple options available now UG production could become viable. Important among them are, mass production technologies, availability of indigenous manufacturing units and well trained skilled labour. Outsourcing to contractors would scale down the cost of production. Gestation period is also considerably lower now. With these advantages CIL plans to steadily scale up the locked up UG coal assets.

Paste fill technology is yet another environment friendly frontier which involves high speed stowing technology. This will be compatible with mass production technology. In contrast to conventional sand stowing it uses fly ash to fill the void created by extracting coal from UG mines, which is yet another environmental friendly step. Such system is in advanced stage of implementation in ECL.

In an urgency to shore up coal stocks at the indigenous coal based power plants, as directed by the government, Coal India Limited (CIL) on Friday floated two international competitive bidding e-tenders of 3 million tonnes (MTs) each, to source coal from abroad. The bids are for 5,000 GAR (gross as received) quality of thermal grade coal.

These two medium term tenders for a total of 6 million tonnes (MTs) coal quantity have an option of increasing the bid quantity by 100% to 12 MTs.

The tenders are not indent based but to keep coal on tap for immediate availability and use in future. It is an advance action by CIL in fortifying future supplies and keeping a vendor ready.

The tenure for placement of order is for a period of one year beginning July of the ongoing fiscal year till June’23. The minimum indent quantity will be 50,000 tonnes.

As and when indented by the state gencos and independent power plants orders will be placed to ship the coal into the country. From the date of placing the indents delivery of coal would be made within 30 days at the free on rail destination of the power plants which seek coal. This means delivery at the doorstep.

The last date for submission and opening and the bids received is 5 July, 2022.

For the 6 MTs coal sought through competitive bids nine destination ports have been identified for the discharge of coal, 3 MTs each at the eastern and western coasts of the country.

The estimated value of the work is pegged at Rs.3,850 Crores for each tranche of 3MTs.

Though CIL is on its full steam in scaling up the production to meet the domestic demand of the country, this is a step towards a state of readiness to combat futuristic coal supply crunch if any.

This comes close on the heels of a short term e-tender of similar nature that the state owned coal mining behemoth issued on 8th June. However, that was for a limited period and limited quantity.

With little or no experience in coal imports, CIL has floated two back to back international competitive bids, as assigned by the government, in a record time adhering to the timeline set.

In a first ever, Coal India Limited (CIL) on Wednesday floated an international competitive bidding e-tender, seeking bids for import of 2.416 million tonnes (MTs) of coal.

The coal being sourced on behalf of the state generating companies (gencos) and independent power plants (IPPs) is based on the indents received from them. It is for July-September period of the current fiscal year.

There is a provision in the tender to accommodate a variation of above or below 30 percent of the bid quantity. The coal being sought is 5000 GAR (gross as received) thermal grade coal.

Government of India had nominated CIL as a centralized agency to augment coal supplies to state gencos and IPPs through import of coal, at a time when the demand for coal is high.

CIL’s Board on 2 June had given its nod for the company to proceed ahead with the issuance of two international tenders for sourcing coal from overseas, a short term and a medium term tender.

The current short term tender for import of coal, for Q2 of FY’23, is source agnostic. This means the coal can be sourced from any country.

Though coal import is an uncharted terrain for CIL, within a week of receiving indents from the 7 State Gencos and 19 IPPs, for a total of 2.416 MTs of coal, the company on a war footing has finalized and floated the tender.

The last date for the receipt of bids is 29th June. There is an option of pre-bid meeting on 14th June to seek clarification on any nuances of the tender.

After the price discovery, CIL shall immediately execute a contract with the successful bidder for supply of coal. Then the state owned coal miner shall enter into a back to back agreement with state gencos and IPPs to whom coal has to be supplied.

The coal imported shall be routed through 9 ports located in east and west coasts of the country. The successful agency, selected through the bidding process, shall deliver coal at the doorstep of the power plants of state gencos and IPPs.

Accelerating its production Coal India Limited (CIL) posted a strong 30% output growth in May’22. The increase in volume terms was 12.6 million tonnes (MTs). The company produced 54.7 million tonnes (MTs) of coal during the month compared to 42.1 MTs in May’21.

During the first two months of FY’22, CIL produced 24.2 MTs more coal than what it did in the same period a year ago. This represents a healthy 29% growth.

CIL’s production increased sharply to 108.2 MTs, till May’22 of the ongoing fiscal year, against 84 MTs for comparable period in FY’21.

All the coal producing subsidiaries of CIL have achieved growth for the month as well as progressive up to May’22.

Facing a production target of 700 MTs in FY’23, which entailed 12.4% growth rate at the beginning of the fiscal, CIL brought down the year’s asking growth rate to 9.9% by the end of May’22.

“Admittedly, sustaining the level of growth witnessed so far, throughout the year, is difficult but we will be monitoring the progress month by month to augment the output” said a senior official of the company

Even amid an unrelenting elevated demand for coal, CIL supplied 52.4 MTs to power sector in May’22 with a high growth of nearly 18% over last year’s May. Supplies to the utilities during May’21 was 44.5 MTs.

During May’22. CIL’s despatch to power sector at an average of 1.69 MTs per day was higher the demand of 1.65 MTs. This helped the stock at power plants, having linkage with CIL, go up by 16,000 tonnes per day during the month.

Concurrently, CIL supplies to thermal power plants jumped to 102.2 MTs till May’22 scoring a strong 16.7% growth over April-May’21. It means the company stepped up its coal despatch by14.6 MTs more to this sector compared to 87.6 MTs of same period FY’21. CIL’s supplies during this period at 1.675 MTs/per day was 100% of the demand.

CIL’s total off-take for May’22 was 61.2 MTs compared to 55 MTs of previous year’s May achieving 11.3% growth. Whereas the growth in total off-take for April-May’22 was 8.7% with the company shoring up its supplies to 118.7 MTs. Off-take for similar period last year was 109.2 MTs.

CIL was able to liquidate the coal stock at its end by 10.4 MTs from a level of 60.6 MTs at the beginning of the year to 50.2 MTs as of end May’22.

Coal India Limited (CIL) posted 15.6 percent growth in its supplies to the power sector in April’22 compared to same month last year.

With the intense demand for coal continuing unabated driven by an upward spiral in the electricity generation CIL pushed up its supplies to power plants of the country to 49.7 million tonnes (MTs) in April’22. This is 6.7 MTs more supply compared to April’21 when the power sector’s despatach was 43 MTs.

On an average CIL supplied 1.66 MTs of coal per day to power utilities in April’22 which sped to 1.73 MTs during the last week. Average supply per day is at par with what was programmed by CIL for this sector during the first quarter of FY’23.

To keep up with the increased appetite for coal, CIL accelerated its production to 53.5 MTs, logging a strong 27.6 percent growth. This is 11.6 MTs higher compared to 41.9 MTs of April’21. All the subsidiaries of CIL have registered year-on-year growth.

MCL, SECL, NCL and WCL have significantly raised the production in April’22. With higher output CIL would is aiming to increase its despatches further, especially to power plants in the coming months.

Coal output of April’22 was the highest ever for the month, so far, eclipsing the previous peak of 45.3 MTs achieved in April’19.

CIL’s total off-take has risen sharply to 57.5 MTs in April’22 logging 6 percent growth compared to 54.2 MTs of same month last year. The off-take was 4 MTs more than the output of the month.

Importantly, CIL registered 16% growth in its over burden removal (OBR). The company excavated 132.8 million cubic metres of OBR during the month registering 16% growth. The same was 114.6 M.Cu.M in April’21. OBR is an important performance criterion that removes the topsoil in opencast mining and exposes the coal seam for faster extraction of coal in future. it also improves the mine geometry and makes mines safer to operate.

Amid the spiraling power generation, Coal India Limited (CIL) raised its supplies to thermal power stations by 14.2% during the first half of April’22 compared to same period last April.

CIL’s supplies have hit 1.64 million tonnes (MTs) per day during this period against 1.43 MTs of similar period April’21.

The company had accelerated its production to 26.4 MTs during the first half of April’22 registering 27 percent year-on-year growth. The company is heading for its highest April production ever. Output expansion in volume terms was 5.7 MTs.

To tide over the intense demand, CIL has made available additional 8.75 MTs of coal to State and Central Gencos for lifting through rail-cum-road mode, till 31 May. Of this, 3.25 MT is the unlifted quantity of the earlier round of RCR offer and 5.5 MTs is the new offer.

However, the escalating power demand driven up by the post pandemic economic buoyancy and hotter than normal summer seem to dwarf the upsurge in supplies.

The mercury levels soared above 41 degrees centigrade in Delhi, Punjab, Haryana, Uttar Pradesh and Rajasthan. The Ministry of Earth Sciences has categorized heatwave status in these northern states. Maximum departure from normal temperature is ranging from 4.8 degrees to 6.2 degrees.

The country’s total power generation was 9.5 percent higher, at an average of 4.53 Billion Units (BU), till 15th April’22 over same period last year. The increase was 400 million units per day against the average generation of 4.13 BU for the comparative period.

Coal fired power generation climbed to an average of 3.5 BU per day in April’22 fortnight, 9.4 percent more over last April’s average of 3.2 BU for same period. The uptick of 300 million units generation per day includes imported coal as well. The bulk though was fueled by CIL’s supplies.

Sequentially, the coal based generation growth of this period is higher by 5.4% compared to the average of 3.32 BU of the whole month of March’22

The international coal prices are on the boil for past many months showing no signs of cooling off. This turns the spotlight on domestic coal producers with CIL is in the centre of it.

CIL is coordinating with the ministries of coal, power and railways to build up stocks at power plants in a synergic effort. The company’s supplies are on the up so far. The pressure would ease if the imported coal based power plants meet their requisite imports set for the year.

At a time when the Centre is exhorting CPSUs of the country to frontload their capital expenditure to spur economic growth, Coal India Limited (CIL) scaled up its capex to Rs.14,834 crores ending FY’22, the highest so far.

Going past the MoU target of Rs. Rs.14,685 Crore this represents 101 per cent achievement. It was for the second consecutive fiscal that CIL bettered its capex target, which is a record of its own.

The capex increase was up by a sharp Rs.1,550 Crores in FY’22 compared to Rs. 13,284 Crores of FY’21, registering a near 12% growth. CIL’s FY’21 capex doubled in a year from that of Rs. 6,270 Crores of FY’20. This means, FY’22 capex growth came on the back of a strong base. The entire capex was met through internal accruals.

“CIL’s capex boost was to catalyze the output growth and align it with evacuation outlets. Most of the capex was spread on land, procurement of heavy earth moving machinery, setting up CHP/silos and creation of rail infrastructure for coal transportation” said a senior official of CIL.

Land and HEMM combined accounted for 40% of the total Capex at Rs. 5,867 Crores.

Capex under land was Rs.3,262 Crores during 2021-22 posting a jump of 17% over previous fiscal’s Rs.2,786 Crores. Acquisition of land is vital for CIL to enhance its production from OC mines. Land procured for two projects of MCL -Searmal and Talacher would help the company further widen its mining operations.

The centralized procurement of HEMM for ECL, NCL, SECL amounted to the bulk of Rs.2,605 Crores under this head. Replacing the old fleet with the modernized equipment to be deployed in OC mines especially in SECL and NCL is essential for output ramp up.

The other important head of capex spend, at Rs.2,322 Crores, was for setting up coal handling plants/silos with a major share taken up NCL, SECL and MCL. Strengthening of evacuation infrastructure through rail sidings and corridors accounted for Rs. 2,307 Crores of total Capex.

Apart from environmental benefit CHP/silo combination ensures faster seamless coal evacuation and quality coal loading. Rail sidings and lines are being dovetailed with CHPs and silos.

Capex growth during all the four quarters of FY’22 and even on monthly basis was significantly higher compared to the previous year.

Coal India Limited (CIL) ended FY’22 scripting a historic high in coal production, off-take and coal despatch to power plants.

Amid rising coal demand from the country’s generation companies, CIL’s supplies to the power sector soared to a record 540.4 million tonnes (MTs) with a whopping 95.4 MT volume increase. This represents 21.4% growth compared to 445 MT supplies of FY’21.

Even compared to standard pandemic free FY’20 and FY’19 the growth in supplies to power sector logged 16 % and 10% respectively.

The sharp 95.4 MT supply expansion in FY’22 is higher than the collective increase achieved during the previous seven year period. Coal supplies to power sector rose to 445 MTs in 2020-21 from 353.8 MTs in 2013-14, up by 91.2 MTs.

CIL has turned out a prolific performance, even as the second wave of Covid during the first quarter of FY, and the extended monsoon threatened CIL’s production and loading operations. Handling volatility of coal demand from the power sector in second half of the year was another challenge.

In yet another new high, CIL produced 622.6 MTs of coal eclipsing the previous high of 607 MTs recorded in 2018-19. After a shrinkage in last two years, CIL came back strongly with 26.4 MT production increase in FY’22. Compared to 596.2 MTs of FY’21, the growth is 4.4%.

CIL’s total off-take at nearly 662 MTs posted a sharp 15.3% during FY’22. The volume expansion is a robust 87.4 MTs compared to 574.5 MTs of FY’21.

The annual increment of 87.4 MT total off-take is more than the combined rise of 85.1 MTs of last six years, from 489.4 MTs in 2014-15 to 574.5 MTs in 2020-21.

CIL’s average loading at the highest ever level of 271.2 rakes per day grew by 12.3% compared to the average of 241.4 rakes loaded in FY’21.

With focus on production boost CIL has cleared 16 coal mining projects of which 7 are green field and 9 expansion projects. Combined, they have a total capacity of nearly 100 MT/Y and incremental capacity of 56.7 MT/Y. Of the identified 15 MDO projects, work order has been issued for 5 projects of 96 MT/Ys capacity during FY’22.

CIL which began FY’22 with 99.13 MT of stock at its pitheads could liquidate 38.4 MTs of coal at the end of FY’22, the highest liquidation for any year.

Coal output and offtake targets are pegged at 700 MTs for FY’23 and the company is committed to achieve them, sustaining the performance of FY’22.

Coal India Limited (CIL) is pumping Rs. 35 Crores into installation of 25 Oxygen

generation plants, across 22 hospitals, to revive increased supply of the lifesaving gas.

These O2 generations plants will be set up in CIL’s own hospitals and in district

hospitals where four of CIL’s subsidiaries operate to support 3,328 beds.

While the combined O2 generation capacity of 20 plants is a little above 12,700 litres

per minute, four of the plants together generate 750 Cubic metres per hour. One is a

refill plant.

Of the 25 plants, five are being installed at CIL’s own hospitals at an investment of Rs.

4.25 Crores covering 332 beds. Northern Coalfields Limited and Central Coalfields

Limited will be putting up two plants each and Bharat Coking Coal Limited, one plant.

The rest 20 plants will be installed in district hospitals under CIL’s corporate social

responsibility. Fully financed by CIL, these plants account for Rs. 30.75 Crores or 88%

of CIL’s total Rs.35 Crores investment.

CIL spent Rs. 264 Crores exclusively on Covid relief measures during FY’21, which is

50% of its total CSR spend of Rs. 523 Crores.

“Responding to the oxygen need and to scale up its availability we are installing O2

plants on a war footing. All CIL owned five plants will be installed before July, in phase

wise manner, beginning from the first week of June. Plants supported by CIL at district

hospitals are expected to be completed by August”, said a senior executive of the

company.

In a unique model, CIL has engaged a voluntary organisation to establish oxygen banks

at 10 locations of Jharkhand and Bihar at Rs 1.34 Cr. 20 ventilators at each location will

be given at no cost door delivery to the afflicted.

Additionally, the company is also contributing Rs. 47 lakh towards ventilators to a

Kolkata Police Hospital.

At a time when Oxygen has become a critical element in Covid treatment, CIL has 2,324

oxygen cylinders and 237 ventilators ready for use at its hospitals.

“With the government declaring Covid measures as common CSR theme for CPSES in

FY’22, we shall further augment our Covid relief measures” said the executive.

As the country’s largest coal producer and supplier, Coal India Limited (CIL) accounted for only

0.65% of India’s total carbon-di-oxide (CO 2 ) emission of 2,616 Million Tonnes (MTs) during

2019-20. This is according to the data sourced from Global Carbon Project: Carbon Di-Oxide

Information Analysis Centre, of US.

A back-of-the-envelope calculation estimates 30 Kgs. of CO 2 emission for every tonne of coal

produced. With CIL’s opencast output at 572 MTs, during FY’20, a little over 17 MTs of CO 2

equivalent was emitted out of CIL’s coal mining operations, compared to the country’s total of

2,616 MTs.

Pollution arising out of coal mining operations is not much compared to burning of the fossil

fuel, from where major emissions emanate.

“Mining is a conflict with nature which impacts environment to a certain degree. The effort is to

cap it to the minimum. We are committed to fulfill our part in reduction of GHG emissions in the

nationally determined contributions (NDC) submitted to UN. Offsetting the carbon footprint to a

bare low is a continuous activity for us” said a senior executive of CIL.

To balance the CO 2 emission, CIL has taken up large scale plantation in its mining areas where

the green cover increased to 862 hectares, in FY’21. This is 116% achievement of the targetted

739 hectares and 6% more compared to 813 hectares of 2019-20. So far, CIL has created 2.4

hectares of plantation for every one hectare of land used for mining. For the ongoing fiscal the

company is targetting plantation over 1,300 hectares, a jump of more than 50% compared to

FY’21.

CIL evaluates the success of its land reclamation through satellite surveillance. 52 opencast

projects, each, producing more than 5 Million Cubic Metres of coal and overburden combined

per annum are monitored every year. Projects below that mark are monitored once every three

years.

For FY’21 the 52 OCPs reclaimed close to 64% of the total excavated area limiting the mining

area at 36%. For FY’22 CIL has drawn up plans to add 26 more OCP projects that produce 5

M.Cu.M of coal and OB under the ambit of annual satellite surveillance, raising the total to 78.

Over last four financial years CIL has planted around 78 lakh saplings with a survival rate of

85% spread over 3,212 Hectares, under afforestation programme. Till date plantation has been

done over a total area of 40,000 hectares. The company is aiming for further 10,000 hectares of

afforestation till 2030 which translates into removal of 5 Lakh Tonnes of CO 2, from atmosphere,

per hectare by then.

Amid the rising second wave of Covid-19, Coal India’s (CIL) coal offtake climbed to 54.1

Million Tonnes (MTs) of coal in April’21. Of this, the power sector lifted 42.4 MTs or

78.4%. The rest 11.7 MTs was made up by the non-power sector.

Offtake could have been even higher, but the pandemic spread afflicted over 5400

company’s employees and their wards across subsidiaries including contractual

workers slowing down the operations. Most of them are involved in the frontline output

and offtake operations. Loading from private washeries, goods sheds and transport

through road mode as well took a hit.

“Despite the setback, coal supplies logged a 3.3% growth compared to a covid free April

of FY’20, while the growth was even higher at 6.1% against April FY’19 when CIL

chalked up its highest ever coal off-take of 607 MTs” said a senior company official.

Drawing growth comparison with last year’s April would be anomalous because of the

near total lockdown then. Nevertheless a 15 MT offtake increase, in a month, is a good

sign signaling demand revival for coal. For the record, the year-on-year growth for

April’21 was 38.4%.

“The key issue is demand has to sustain. If it holds, it bodes well for us in bringing down

coal inventory further and increase supplies”, said the official. Meeting any demand

spurt from the power sector would not be a problem but transport logistics taking a toll

due to the second surge is a matter of concern.

CIL reduced its coal inventory by 12.2 MTs in April’21 to 87.2 MTs. The company began

FY’22 with a record stockpile of 99.3 MTs largely due to Covid prompted tepid demand

for the dry fuel.

CIL produced around 42 MTs of coal in April’21 and Over Burden Removal at 116

Million Cubic Metres achieved 94% of the month’s target.

CIL continues to combat Covid on multiple fronts. It has set up a total of 3,000 beds,

most of them oxygen supported including ICU beds. Additional 900 beds are being

planned of which 60 are ICU. 1820 Oxygen cylinders and over 200 ventilators are on

ready condition. Over 77,000 employees, their wards and contractual workers, of over

45 years, have been vaccinated till 2 May since the beginning of FY’22 in an ongoing

programme.

Coal India Limited (CIL), the manpower intensive industry, is on high alert to guard its employees,

by ramping up the medical infrastructure and availability of oxygen cylinders across its

subsidiaries, to combat the second surge of Covid-19.

In what could be the highest mobilization of Covid beds by a corporate entity in the country, the

Maharatna coal miner has set up around 2000 beds which include ICU, isolation and covid care

beds with oxygen support. While oxygen supported beds are over 750 the ICU beds number nearly

70. This apart, CIL’s coal companies have also tied up with local hospitals and State governments

funding and facilitating beds to step up Covid relief measures. Availability of beds in local

peripheral areas is also being increased.

Emergency utility equipment has been scaled up with around 2000 Oxygen cylinders ready for use

and 70 ventilators in operational state. (upto 25 April), Three of the subsidiary companies are

considering installing oxygen generation plants to tide over the shortage of the life saving element.

Plans are afoot to further increase the medical facilities to meet any exigencies. The situation is

being closely monitored at the highest levels of CIL and coal companies, working out plans for

augmenting emergency medicines, beds and accessories to combat the Covid.

“Ours being a manpower intensive industry we are concerned about our workforce and doing all

we could to prevent the spread of the pandemic at our mining areas, All our subsidiaries are

battling on multiple fronts by scaling up protective and relief measures." said a senior official of CIL.

Coal companies are stocked with adequate Personal Protective Equipment (PPE). Large numbers of

masks and sanitizers have been distributed so far in one of the largest logistics mobilization in

tackling Covid.

Concurrently, the company is also taking measures to ensure seamless production and off-take.

With the onset of summer, the demand for electricity is rising and the company has to maintain

steady supplies.  

CIL has ascertained that the contract workers do not take a pay hit and full wages are ensured to

them, even in the event of lockdown, with extension of free medical facilities at CIL’s area hospitals.

CIL has also declared ex-gratia payment of Rs.15 Lakhs to the next of kin of employees including

contractual workers, in case of death due to Covid.

"The second surge was an unforeseen situation, but we are bracing up with building medical

infrastructure and logistics” said the executive.

Coal companies of CIL, since 1 April, have taken up a vaccination drive on war footing for people of

above 45 years age. So far the average vaccination is around 1,700 persons per day. Since this is an

ongoing process, the numbers are expected to go up considerably higher going forward.

Vaccination is for company’s employees, their dependents and contractual staff.

Coal India Limited (CIL) on Thursday signed a first of its kind power purchase

agreement for sale of 100 MW solar power with Gujarat Urja Vikas Nigam Limited

(GUVNL). The tenure of the agreement period is for 25 years.

In its maiden venture into solar power, the world’s largest coal producing company

in March’21 had won a 100 MW solar power project in reverse auction conducted by

GUVNL.

“We feel upbeat that we could win in our first ever competitive bidding of solar

auction. We will aggressively participate in more such auctions in future,” said a

senior executive of CIL.

CIL is serious on its intent to pursue solar power generation as an alternative green

energy source. This lists high on its diversification portfolio. The company has rolled

out a plan for 3,000 MW of solar power generation by 2024. Around Rs.13,500

Crores is planned to be invested in solar power projects through company’s internal

resources, Special Purpose Vehicles (SPV) and bank loans. CIL is developing

necessary in-house expertise and has created a team of competent officers for its

solar initiatives.

“Solar will replace coal as a key energy provider in future and we are laying the

groundwork to remain relevant in the country’s energy sector. We plan to venture

into solar power generation in a big way”, said the executive.

For the 100 MW bid that it won, CIL was awarded the work with a stipulation that it

enters a PPA for establishment of solar power project and supply the power

generated to GUVNL within 18 months from the date of inking the PPA.

To come up at a capital investment of at Rs. 442 Crores, CIL will execute the 100

MW project through a Solar EPC Contractor (engineering, procurement and

construction).

In a back-to-back arrangement, CIL has already issued a tender in advance for

finalizing a solar EPC contractor which is in advanced stage. The project will be

executed within one year from the date of placement of the work order.

To accelerate its entry into development of cleaner renewable energy sources, CIL

on 16 April’21 added two more fully owned subsidiaries to its fold. These will

function as SPVs to carry the company’s stated objectives.

The two SPVs that were incorporated are ‘CIL Navikarniya Urja Limited’ and ‘CIL

Solar PV Limited’. Both the registered entities will be situated in West Bengal.

Coal India Limited (CIL) more than doubled its capital expenditure to an unprecedented

high of Rs.13,115 Crores in FY’21 compared its previous year. Against the capex of

Rs.6,270 Crores in FY’20 the company clocked 109% growth amid the Covid slump.

Never before was such capex growth registered by CIL. This comes at a time when the

Centre had advised CPSEs of the country to scale up their expenditure to boost the

economy.

This also marks the state owned Maharatna coal miner’s all-time high capital

expenditure, breaching the ramped up capex target of Rs.13,000 Crores, achieving

101% of the revised target.

CIL’s original sanctioned capex budget was Rs.10,000 Crores for FY’21. However, the

government assigned CIL a challenging 130% achievement of the budgeted target the

company to be evaluated as ‘Excellent’ under this specific parameter in MoU rating.

This prompted CIL, for the first ever time, to tweak up its capex budget by 30% and

revise it to Rs. 13,000 Crores.

“The entire capital expenditure was funded through internal resources. Capex growth

during all the four quarters of FY’21 was significantly higher compared to previous

year. Progressive upto December’20 also our capex utilization was more than what was

mandated by Ministry of Coal” said a senior official of the company.

Procurement of heavy earth moving machinery at Rs. 3,453 Crores topped the list of

capex heads for FY’21, followed by land at Rs.2,470 Crores, yet another important

capital of CIL.

Capex in joint ventures, in proportion to CIL’s shareholding, like Talcher Fertilizers

Limited and Hindustan Urvarak & Rasayan Limited accounted for Rs. 2,194 Crores. CIL’s

coal evacuation initiatives which include setting up coal handling plants, silos and

constructing sidings accounted for Rs.1,398 Crores. Construction of rail corridors and

railway lines summed up Rs. 1,166 Crores, while the rest was made up by different

other heads.

CIL and five of its subsidiaries CCL, NCL, WCL, MCL and CMPDIL coasted through their

respective revised capex targets for 2020-21. SECL, though did not surpass its revised

budgeted target, was the highest capex spender among all CIL’s subsidiaries at Rs. 3,260

Crores creating a record for itself.

“The high capex will yield positive results to the company in ensuing years in terms of

production and coal transportation” said the referred executive.

At the end of Covid clouded FY’21, Coal India’s (CIL) silver lining, amid output and off-take challenges,

came in the form of curbing coal imports to the tune of 90 Million Tonnes (MTs). Also, beating the

previous estimates the PSU coal major booked an all time high of 124 MTs in its e-auctions. Over Burden

Removal sustaining its growth trajectory throughout the fiscal logged 17% growth easing the way for

faster future production.

Through a series of initiatives CIL pumped additional quantities of coal into system that prompted

customers for opting 90 MTs of domestic coal in lieu of coal imported from abroad.

“In the absence of our import substitution measures through a host of concessions and benefits the

customers would have had no alternative than to source coal from imports. In that, it was a productive

and timely move”, said a senior executive of the company.

The company opened a new window exclusively for coal importers in October’20. CIL allowed its

subsidiaries to sign MoUs with 17 power plants linked to them to substitute their imports with its own

coal, for blending. Additional coal was allocated to Central and State Gencos, under flexi-utilization,

enabling them avert coal imports. ACQ for power plants was enhanced to 100% of normative requirement

from 90%. Increased quantities of coal was offered to non-regulated sectors against FSAs up to 100% of

ACQ. Trigger level for power sector was elevated from 75% to 80%. Increased bookings in auctions was a

major booster in import substitution efforts. While these actions cumulatively helped Power Sector opt

for domestic coal to the tune of 42 MTs, NRS picked up bulk of the rest.

CIL set a new high in booking 124 MTs of coal under five e-auction windows in FY’21 eclipsing the

previous record of 113.6 MTs achieved in 2016-17. Compared to 66 MTs booked in 2019-20, CIL logged a

strong 88% growth in auction bookings. In absolute terms the increase is 58 MTs.

CIL produced 596.2 MTs of coal ending FY’21 against 602.1 MTs of last fiscal, while the off-take was 573.8

MTs compared to 581.4 MTs. “Despite our best efforts there was marginal contraction in output and off-

take by 1% and 1.3% respectively on a year-on-year comparison due to covid led lack of demand” said the

stated official.

Primarily what hurt CIL’s supplies was reduced coal lifting by Power Sector and a steep 31% fall in road

transport despite our best efforts for conversion from road to rail during pandemic lockdown.

Coordinated efforts with Railways witnessed loading from CIL’s own sources go up by 11% on a year

on year comparison. “The shrinkage in supplies could have been more had not for the spate of actions

and sops offered to our customers”, said an official of the company’s marketing division.

The lack of demand also led to a stockpile of 99 MTs at CIL pitheads. Further production would have

resulted in stocks building up even higher. On the positive side with the expected demand revival during

summer months of Q1, the company has sufficient buffer to meet any surge and the stocks would be

reduced substantially.

Accelerating its rake loading Coal India Limited (CIL) loaded 372.5 rakes on 19 March

2021, from its own sidings, the highest for any day so far during the ongoing fiscal. Of

this, Power Sector accounted for 90% at 335 rakes. In the process five subsidiaries of

CIL posted their highest ever loading since inception.

For the month of March till 26 th CIL loaded an average of 312 rakes per day clocking a

robust 24.6% growth compared to same date of last March when the loading was 250.3.

Similarly, average loading to Power Sector clocked 22.7% growth in March so far at

269.2 rakes compared to 219.4 rakes same period last year.

After CIL’s supplies shrunk by 21% amid Covid-19 triggered downward spiral in Q1, the

company bounced back strongly by registering 6% growth from July’20 onwards till

now.

Progressive rake loading for the year as well till 26 March logged 10.5% growth at

240.8 rakes per day against 217.9 rakes same period. Power Sector loading was also up

by 7% during the year till 26 th March. CIL could load 202.6 rakes per day during the year

so far, against 189.3 rakes loaded same period last year.

Despite growth in rail mode loading and 2% growth in merry-go-round, CIL’s supplies

in volumes terms shrunk marginally compared to last year, primarily due to less lifting

of committed quantity by power sector and reduced despatch through road mode

during the pandemic lockdown resulting in a fall of around 32%. These two factors hit

CIL’s supplies during the year.

However, with non-regulated sector customers showing a healthy appetite for coal,

loading to the NRS sector jumped up to a phenomenal 33.5% growth during the year –

which is a five year high. NRS customers lifted 38.2 MTs of coal during FY’21 till 26

March against 28.6 MTs same period last year.

CIL has introduced a spate of measures to improve demand during covid slowdown.

These include waiver of performance incentives for power sector FSAs, allowing

booking of the coal quantities not lifted for non-power sector FSA consumers in the

subsequent months of the FY, extending payment schedule of coal value and lifting

validity of the sale order, facilitating conversion of coal transportation mode from road

to railway to auction route customers.

These measures helped the company scale up the supplies to 565.5 MTs.

Coal India’s (CIL) underpinning for better quality coal supplies reflected positive jump in the third party

sample analysis as the grade conformity during Apr-Feb’21 improved to 65% from 59% compared to same

period last year.

Grade slippage during the third quarter of FY’21 was down to 34% compared to 41% the same period year

ago. During first two months of the current fiscal’s fourth quarter, Jan’21 to Feb’r21, grade slippages declined

further to 23% compared to 42% of last year’s same period.

The notion that customers are billed for higher grade coal than one actually supplied is misconceived. CIL

initially bills customers based on the declared grade of coal supplied. Such provisional bills are later adjusted,

once the actual quality of coal is tested and established by an authorized Third Party Sampling agency which

are Central Institute of Mining & Fuel Research and Quality Council of India. This mutually agreed system of

sampling is in vogue since 2016. CIL is further inducting two more globally reputed agencies for its third party

sampling initiatives.

“No consumer suffers financial loss arising out of quality variation between the declared grade and the actual

tested grade” said a senior executive of the company.

Contrary to losing out on quality front CIL, till January’21, stands to receive Rs. 571 Crores as net quality bonus

for providing better coal than declared grade. This is expected to go up to around Rs.660 Crores considering

the trend of referee results received during the ongoing FY.

Primary reason for grade variations is the inherent heterogeneous nature of Indian coal itself meaning,

calorific value of coal extracted within the same seam at different points tends to vary. The gradation of mines

is determined by Coal Controller’s Office annually which is a statutory body under GoI, and not by coal

companies.

The analysis between weighted average of declared Gross Calorific Value (GCV) and analyzed GCV during

April-January’21 shows the variation to be 26 K.cal/Kg which is lesser than one-tenth of a grade band,

compared to same period last year. The difference between two bands of a grade is 300 K.Cal/Kg.

Further, there is a provision in the agreement for challenging the result of the Third Party Sampling either by

consumers or the coal company based on the analysis results obtained at their ends. In case of challenge, the

part of coal samples preserved is sent to the designated government referee laboratory for re-analysis, as well.

CIL’s use of surface miners entail blast free selective mining leading to better quality coal output with added

advantage of consistent sized coal. Surface miner output logged 5.8% growth at 220 MTs during April’20-

February’21 compared to 208 MTs extracted through these machines in the same period last year. CIL is

confident of surpassing last year’s output of 269 MTs achieved through surface miners.

CIL is also pushing ahead for utilization of mechanical scraping to remove extraneous material, use of mobile

crushers for supply of sized coal, transportation of coal from mines to loading points in first mile connectivity.

In a first, online ash analyzers are being procured for the mines of NCL and MCL for real time coal quality

assessment. The slew of measures will further help CIL in consolidating its quality supplies.

Scripting a record high, Coal India Limited (CIL) has approved 32 coal mining projects in

the current fiscal till January’21, which indicate an estimated incremental capital of around

Rs. 47,300 Crores.

While 24 of the 32 are expansion of the existing projects, the rest 8 are new greenfield

projects. The combined incremental peak capacity of these projects is projected at 193

Million Tonnes/Year (MT/Y). This will be in addition to the already sanctioned capacity of

303.5 MT/Y.

The approval of the projects enables coal companies of CIL escalate their production in the

ensuing years. CIL Board and Boards of the respective subsidiary companies have given

their nod for the move.

The incremental production by FY’24 from the approved 32 expansion and the new

greenfield projects would be to the tune of around 81 MT/Y.

“Such high number, either in terms of projects or capacity addition, has not been cleared in

a single financial year so far” said a senior official of the company.

CIL is striving to replace the coal imports through its own coal and any increase in

domestic production would play a catalytic role in this effort.

Of the 193 MTs/Y capacity, of 32 projects, the three subsidiaries of CIL, South Eastern

Coalfields Limited (SECL), Central Coalfields Limited (CCL) and Mahanadi Coalfields

Limited (MCL) at 167 MT/Y between them form the bulk at 86.5%.

SECL with 6 projects at an estimated incremental investment of Rs.18,657 Crores accounts

for 63.5 MT/Y followed by CCL at an investment of Rs.7,520 Crores for 10 projects of 56.6

MT/Y. MCL with 3 project would add up to 47 MT/Y at an investment of Rs. 14,057 Crores.

The rest, nearly 26 MTs/Y would be met through ECL, NCL and WCL with the remaining

investment between them.

“Concurrently, in tandem with production the company is also strengthening the rail

evacuation infrastructure through setting up rail lines, sidings and first mile connectivity

projects in the companies from where the majority of the output is expected” said the

stated official.

Coal India’s (CIL) drive for import substitution backed by a set of multiple measures facilitated

coal consumers to opt for around 71 Million Tonnes (MTs) of indigenous coal ending February

of the current FY.

Predominant among them was a robust 43.5 MTs increase in e-auction bookings during April-

February’ 21 compared to last year same period.

The slew of measure undertaken by CIL include allowing its coal companies to sign MoUs

under import substitution with 17 power plants linked with them. Additional coal was offered

to non-regulated sector (NRS) against fuel supply agreements up to 100% of annual contracted

quantity (ACQ). Trigger level for power sector was increased from 75% to 80%. ACQ for

power plants was enhanced to 100% of normative requirement from 90%. Additional coal was

allocated to state and central generating companies under flexi utilization policy enabling them

reduction in coal imports.

CIL also waived off performance incentive to the consumers of power sector, for supply of coal

beyond the trigger level since the beginning of the fiscal. This helped the consumers opting

additional quantities of coal at lower cost from CIL.

Coal companies of CIL have been proactively conducting frequent interactions with the

consumers sensitizing them to opt for the indigenous coal instead of coal sourced from abroad.

“These coordinated efforts of CIL, apart from 43.5 MTs of increased bookings in e-auction,

helped arrest the imports by further 28 MTs” said a senior executive of the company. Had CIL

not launched such measures the choice for consumers would have been to reach out for

imported coal. Small consumers and traders who do not have long term contracts with CIL opt

for e-auction sales with the other alternative being import.

Power Sector consumers, among the many, who were provided coal under these measures

were CESC Limited, Andhra Pradesh Power Development Corporation Limited, Adani Power

Limited and GMR group. NRS consumers include Vedanta Limited, Jindal Steel & Power

Limited, NALCO, Hindalco Industries Limited and Tata Steel BSL Limited.

Bookings under special forward auction, meant exclusively for power sector consumers, at 33

MTs during April-February’21 logged 27% growth over last year’s same period. The increase in

real terms was 7 MTs against 26 MTs of last year.

Imports by domestic coal based power plants at 9 MTs declined by 55% till January 21

compared to 20 MTs of same period last FY.

For faster and customized automated access to data, through Freight Operations

Information System (FOIS) of Indian Railways, which would help Coal India Limited

(CIL) monitor movement of coal laden rakes and coal despatch activity, the company on

Monday entered a Memorandum of Understanding with Centre for Railway Information

Systems (CRIS), a wing under Ministry of Railways.

The first of its kind data sharing offers CIL a bouquet of benefits that helps it in

rationalizing the entire coal supply matrix through rail mode. It provides precise details

of loading, weighment and unloading details along with turnaround time of rakes.

Primarily it is a handshake of freight operation information between the networks of

CIL and CRIS regarding CIL’s rail movement of coal. It also includes other logistics

details.

The information helps minimize the instances of under loading and overloading of rakes

and untangles the knots benefitting CIL, Railways and the consumers. Importantly, the

resultant relevant information eases the way for faster billing and bill monitoring

process replacing the manual entry of railway receipts with instantaneous online

transfer.

Another high point is the data sets shared by CRIS provides CIL information on

sanctioned coal and rake programmes, rake demand, rake detention and diversion

details which helps the coal companies plan their supplies.

CIL has developed a portal which helps in sharing the FOIS data with its subsidiary coal

companies.

“The pact assumes greater significance at a time when CIL is pushing for increased rail

evacuation and gradually reduce the road movement of the dry fuel. The real time data

helps us in better planning” said a senior executive of the Company.

Upto 20 th February of the ongoing fiscal, CIL’s coal movement through rail mode from its

own sidings, goods sheds and private washeries at 302.51 Million Tonnes (MTs) accounted

for 61% of the total off-take quantity. When dovetailed with merry-go-round system, at

92.8 MTs, which is a dedicated rail mode transport, the percentage expands even higher

to 79%. “We intend to raise it further” said the referred executive.

CIL and CRIS will collaborate for further improvement in data sharing with periodical

reviews. The contract period of the MoU is one year with annual technical support.

In a silver lining, Coal India’s (CIL) overall expenditure reduced by Rs.1,838 Crores or 3.3%

during the first nine months of the ongoing fiscal, ending December ’20 even as the

company’s composite OC production increased by 16.1% during the period. This is the sum

of the over burden (OB) excavated and coal produced through opencast mines.

CIL’s overall expenditure dropped to Rs. 54,241 Crores, during the referred period, from

that of Rs. 56,079 Crores for the same period year ago, the decrease being 3%.

CIL’s expenditure climbed down while the company clocked 6.3% output growth, 9.1%

surge in coal off-take and 17.3% increase in over burden removal (OBR) during the third

quarter ended December’20. Increased OBR was a significant factor.

The major reduction was visible in employee benefit expenses which stepped down by Rs.

735 Crores. These include salaries of the employees, performance related pay of executives,

performance linked reward of non-executives, coal mines provident fund contributions etc.

Other miscellaneous expenses accounted for Rs. 126 Crores.

Also, there was less provisioning of stripping activity by Rs.2,894 crores during the referred

period. Stripping activity is the quantity of OB removed for the required coal produced. OBR

is one of the significant components of the expenditure.

In the recent years CIL has become leaner shedding its flab through superannuation of

around 13,000 employees per year. Its manpower stood at 2.72 Lakhs at the beginning of

the current fiscal compared to 3.22 Lakh employees four years ago. During the nine period

of the current fiscal the manpower reduced by 13,800. This reduction is expected to

continue for few more years which would further shrink the employee benefit expenditure

which currently stands close to 50% of CIL’s overall revenue expenditure.

During the Covid led slowdown CIL benefited consumers of the power sector to the tune of

probable Rs.703 Crores as it waived off the performance incentive for increased supplies

made above the committed contracted quantity of coal. As most of the customers were cash

strapped, impacted by Covid fueled fall in the industrial activity, CIL also did not press for

the penalty for lifting lower quantities of coal than the contracted quantity.

CIL’s OBR has been consistently on an upward trend during the current fiscal despite the

covid slowdown. OBR growth was 20.3% ending December’20 at 967.26 Million Cubic

Metres. OB growth peaked to a record high of 70.5% during the month of September’20.

Coal India Limited (CIL) on Saturday last formally signed a major procurement pact worth Rs. 2,900

Crore, for purchase of 96 dumpers of 240 Ton capacity each with Belaz, the Belarus based mining

equipment manufacturer. Earlier, in August’20 CIL’s Board has given its nod for their procurement.

These dumpers are of the highest capacity currently operational in the country which play a critical role

in opencast mines.

The entire Rs.2,900 Crore investment would be funded through CIL’s own finances and includes the cost

of equipment along with the spares and consumables for 8 years.

For CIL whose 95% of the entire coal output is through opencast mines dumpers of such high capacity

are pivotal in ferrying Over Burden (OB) from mine working face to dump yard. OB is the extraneous

material that overlays the coal seam, removal of which makes the dry fuel’s production easier.

The batch of 96 dumpers would be deployed in two of the large opencast mines of South Eastern

Coalfields Limited (SECL), the highest coal producing subsidiary of CIL, namely Gevra and Kusmunda.

While 84 machines would be pressed into action in Gevra the rest 12 would be operationalized in

Kusmunda.

The first lot of six dumpers would roll into Gevra OC expansion project within eight months from the

signing of the contract. Thereafter on CIL’s green signal of their performance, after one year from the

date of their commissioning, the rest 90 would follow at four machines per month.

66 similar capacity machines are already operational in SECL and once the 96 are added to the existing

fleet, their total would swell up to 162.

CIL’s OBR performance has been persistently positive since the beginning of the fiscal and ending

January 2021, the growth clocked a robust 20% at 1106 Million Cubic Metres. With the company

confident of sustaining OBR growth momentum, the role of dumpers in transporting the extracted OB

gets amplified further.

“We have been upgrading and modernizing our mining equipment to meet the future challenge of

increasing the production. Especially, in the recent past we have stepped up on the procurement of

heavy earth moving machinery” said a senior executive of the company. CIL placed orders worth Rs.

8,688 Crores during the previous fiscal for HEMM procurement.

The purchase contract was inked in the presence of Mr. Pramod Agrawal, Chairman, CIL and Mr. Binay

Dayal, Director (Technical) CIL. Mr. Petr Parkhomchyk, Minister of Industry, Belarus and Mr. Andrei

Rzheussky, Ambassador of Belarus to India attended the signing event signifying its importance.

This is the second contract that CIL has sealed with Belaz, as earlier it had procured 77 dumpers of 150

Ton capacity from the same company through a global bidding.

Coal based power generation accounted for 78.6% of the country’s total generation on

22 January 2021 when all India peak power demand, which is the highest supply in a

day, surged to a new record of 187.3 GW in the morning eclipsing the previous high of

185.82 GW recorded on 20 January.

Of the total 3.906 Billion Units (BU) generated on 22 January, coal fired generation

chipped in the bulk with 3.072 BU.

CIL is well geared to meet any surge in demand for the dry fuel from the power sector

especially on the back of close to 63 Million Tonne stock at its pitheads. The company is

also pushing ahead for increased production, committed to shore up the supplies to coal

fueled power plants.

In this backdrop, close to 67% of the total coal fired power generation in the country is

fueled through Coal India’s (CIL) supplies. Of the 199 GW of coal based power

programmed for generation, per day, during the ongoing fiscal 133 GW is scheduled

from CIL linked coal.

Average coal based power generation of power per day which was 2.795 BU till 22 nd

January 2021 spurted up to 3.072 BU, a jump of nearly 10% on the morning of the

record making day. Coal based power generation remains consistently high among all

other categories.

“This increase in coal based power generation bodes well for us. If this continues, we

could expect our supplies to power sector go up in near future” said a senior executive

of CIL, adding “Power plants need to submit adequate program at our coal companies to

avoid any shortage of coal as the demand started peaking”.

Coal India is focusing to ramp up its supplies to pithead based power plants to higher

levels. This would influence in cost per unit of power generated coming down. Coal

transportation cost to pithead power plants is comparably lower than long distanced

based ones, making the landed cost of coal lower. This in turn makes the generation cost

economical.

Coal India Limited (CIL) in a first ever has scaled up its capital expenditure budget by an

additional Rs.3,000 Crores revising it to Rs.13,000 Crores for the ongoing fiscal. This represents

30% jump over CIL’s original capex target of Rs. 10,000 Crores for 2020-21.

The upsurge comes at a time when the government has directed the Central PSUs of the

country to step up their capital expenditure to stimulate the economic activity.

Of the additional Rs.3,000 Crores injected into CIL’s capex budget, South Eastern Coalfields

Limited, the largest coal producing subsidiary of CIL accounts for Rs. 800 Crores followed by

CIL headquarters with Rs.585 Crores and Mahanadi Coalfields Limited with Rs. 550 Crores.

Central Coalfields Limited takes up Rs.460 Crores.

In an endeavor to elevate production, the major heads CIL has identified for capex are land

acquisition, procurement of heavy earth moving machinery, upgrade of rail evacuation

infrastructure and mine development.

Maintaining its growth streak in capital expenditure since the beginning of the fiscal, CIL in a

stellar show has posted a whopping 166% growth at Rs. 7,801Crores during the first nine

months of the fiscal ending December’20. Compared to Rs. 2,930 Crores capex that the

company clocked during the same period last financial year, the actual spend was up by

Rs.4,871 Crores.

“In the process, CIL has utilized 78% of its total original capex budget during April-

December’20. CIL was directed by the Ministry to achieve Rs. 7,500 Crores capex utilization by

the closure of December’20 against which the actual capex utilization was Rs. 7,801 which is

Rs. 301 Crores more” said a senior executive of the company.

CIL’s capex for the current year’s Q3 as well, ending December’20, at Rs. 2,778 Crores posted a

strong 90% growth against Rs. 1,463 Crores of same quarter last year. The increased spend

during the third quarter was Rs. 1,315 crores.

For Q2 of the current year CIL logged a robust 312% capex growth and a growth of 86.5% in

Q1. CIL’s capex during the current financial year makes it one of the top spenders among the

Indian PSUs.

Coal India’s land possession and civil construction jobs, among other activities, were

hamstrung during the covid led slowdown. Subsequently headway could be made with the

situation improving post unlock, nudging its increased capital expenditure.

“CIL will be closely monitoring the progress of the capital expenditure to achieve the revised

target of Rs 13,000 Crores in the current FY” said the referred executive.

Encouraged by the buoyancy in its e-auction coal sales Coal India Limited (CIL) is optimistic

of closing the current fiscal with auction bookings of 120 Million Tonnes (MTs). It would be

the highest ever since coal sales began under the auction hammer.

“Auction sales have surpassed our previous estimates and we feel sure of allocating 120

MTs of coal by the end of the current fiscal” a senior official of the company said.

CIL’s concentrated efforts to book increased volumes of coal under e-auction to bolster sales

revenue, especially in view of the narrowed margins in add-ons during covid pandemic

period, paid off with the company scoring a strong 76.2% growth during April-December’

20.

The PSU coal miner booked 81.4 MTs of coal under five auction windows progressive upto

December’20 displaying a robust 35.2 MTs volume expansion compared to 46.2 MTs it

booked same period a year ago. Beginning October’20 of the current FY CIL introduced

special spot auction for coal importers, under which it had already booked 7.3 MTs in three

months.

Apart from increased volume bookings, premium over notified price has been gaining

steadily since October with CIL as whole netting a 15% premium during April-December’20.

Among the subsidiaries, Eastern Coalfields Limited clocked the highest 40% increase over

the notified prices with Central Coalfields Limited and Bharat Coking Coal Limited

registering 23% and 22% respectively.

“We have identified specific mines in ECL, BCCL, CCL and SECL from where the response has

been positive in e-auction and there is potential for further increase” the referred executive

said.

Non-Power Sector consumers, under an exclusive auction window, booked 19.8 MTs during

the first nine months of the ongoing fiscal posting more than a three-fold increase against

6.8 MTs the sector booked on a year-on-year comparison. Absolute increase is 13 MTs.

For December’20 CIL allocated 13.1 MTs of coal surging ahead with 72% growth compared

to 7.6 MTs of December’19. Premium earned over the notified price was 25%. Notably,

current year’s December saw a significant increase in bookings from power sector under

special forward auction at 5.1 MTs compared to 0.5 MTs the same month year ago fetching a

premium of 12%.

Even if CIL books December volume of 13.1 MTs per month for the remaining three months

of the fiscal, it would still comfortably coast to the highest ever e-auction sales of 120 MTs.

Coal India Limited (CIL) turned out a positive performance for the third quarter of

the current fiscal as the PSU coal major posted growth in all the three performance

parametres of output, off-take and over burden removal (OBR) compared to year

ago same quarter.

During the quarter ended December’20, CIL at 154.6 Million Tonnes (MTs) supplied

13 MTs more coal to the consuming sectors posting 9.2% growth compared to 141.6

MTs of Q3 last fiscal. The quarter-on-quarter growth was 15% compared to the off-

take of 134.3 MTs during July-September’20.

CIL’s output at 156.8 MTs of coal during October-December’20 logged a jump of

6.3% compared to 147.5 MTs it produced for the same quarter last year. Production

increase in volume terms was 9.3 MTs during the referred period. The quarter-on-

quarter output increase was a whopping 41.8 MTs clocking a robust growth of

36.4%. CIL produced 115 MTs during Q2 of the current fiscal.

“With the non-power sector consumers lifting increased quantities of coal during

this year’s Q3, CIL could record a robust 43.4% growth in supplies to this sector”

said a senior official of the company.

For October-December’20 CIL supplied 36.62 MTs to non-power consumers

compared to 25.53 MTs that it did during Q3 of last year. The incremental supply

during the period was a little over 11 MTs.

“The demand for coal from the power sector is yet to crystallize fully” stated the

referred executive. Despite the tepid demand there was a nominal growth of 1.5% in

supplies to power plants during the third quarter of FY’21. CIL’s off-take to Power

Sector was 117.8 MTs in October-December’20 against 116.07 MTs of last year’s

similar quarter.

The company’s OBR clocked a healthy growth of 17.6% at 366.23 Million Cubic

Metres (M.CuM) in Q3 FY’21, clearing the way for easier future production. OBR was

311.52 M.CuM for the comparable quarter last year. CIL has been registering a

steady growth in OBR since the beginning of the fiscal.

Coal India Limited (CIL) underpinning for a cleaner environment in coal transportation has placed increased impetus on rail evacuation and would gradually migrate away from the road movement of the dry fuel. Reduced road transportation of coal would depress the dust pollution and save on the diesel costs.

Ending November of the ongoing fiscal, CIL’s exclusive rail coal movement at around 202 Million Tonnes (MTs) went up by 16%, on a year-on-year comparison, while the road mode fell by 33%. During 2019-20 as well road movement of coal was down by 11%. Rail mode transportation accounted for 56% of the total coal off-take of CIL in Apr-Nov’20. Rail and Merry-Go-Round combined was close to 76%.

In a move to buttress its rail evacuation infrastructure CIL is constructing 21 additional greenfield and brownfield railway sidings at an estimated investment of Rs.3,370 Crores in four of its subsidiaries. These would be commissioned by FY’24. CIL currently has around 152 rail sidings and the tally would go up to 173 by 2024.

“The sidings will add fillip to CIL’s First Mile Connectivity efforts, acting as effective coal evacuation outlets. The dovetailing of existing and new rail sidings with rapid loading system silos of FMC projects will help improve loading quantity in future when production expands” said a senior official of the company. CIL is aiming to move about 555 MT of coal per year through mechanized means by FY’24.

With CIL aspiring for 1 Billion Tonne output by FY’24, the nudge is to transport bulk of the coal through rail mode. In this backdrop, CIL is ramping up its rail evacuation facilities.

South Eastern Coalfields Limited account for ten of the proposed 21 sidings followed by Central Coalfields Limited with six, Eastern Coalfields Limited three and Bharat Coking Coal Limited two.

Apart from investing in new sidings CIL is refurbishing old sidings, strengthening rail connectivity between the sidings and the main rail lines. CIL is also investing in construction of new broad gauge rail lines in greenfield areas either on deposit basis or by formation of rail JVs with Indian Railways and the concerned state governments.

To bolster further capacity enhancement CIL will be extending the rail links to newer loading points and doubling and tripling the lines in some cases.

Jharsuguda-Sardega rail line in Odisha under MCL is being doubled and construction of a double line flyover at Jharsuguda is on the anvil. In Jharkhand under CCL, Tori-Shivpur new broad-gauge double rail line has been laid and Tori-Shivpur 3rd rail line is underway. Construction of Shivpur-Kathautia rail link is also being planned through a rail JV of CCL.

Coal India Limited (CIL) logged a strong 77% growth in e-auction sales in April-November of the ongoing fiscal, under five windows, booking 68.3 Million Tonnes (MTs). The upsurge in the booked or allocated quantity of coal was close to 30 MTs, in absolute terms, compared to 38.6 MTs booked during same period a year ago.

Indicating increased appetite from non-power consumers, exclusive auction for this sector booked 17.4 MTs which is 25.5% of the total allocated quantity during the referred period. Compared to 4.8 MTs booked by non-power consumers during April-November’19 the growth is more than a three and half fold or 262%.

E-auction sales for November’20 not only witnessed improved volume bookings at 9.4 MTs, clocking 23.7% growth last November but CIL could also net 30% premium over the notified prices.

This is a big leap from 13% premium the auctions fetched in October’20 when CIL for the first time in the present fiscal introduced add on over the notified price, after a six month hiatus, to gauge the market response.

Considering the market response to e-auctions there is a strong possibility that the bookings could go over 100 MTs in the current fiscal.

‘Special spot auction for coal importers’ also gained positive response with 3.3 MTs booked in November’20 with a premium of 21%. The quantity is twice that of 1.6 MTs booked in October, the first occasion CIL introduced this window, when the premium fetched over notified price was 14%.

“For now the focus remains on volume expansion in e-auction sales rather than add-ons over the reserve price. Going forward add-ons will be pliable based on subsidiary wise and grade wise demand” said a senior executive of the company.

Given the power sector’s 80% share in CIL’s total off-take programme it will not be feasible for non-power sector to offset demand shortfall from the power sector fully. However, the demand from non-power sector is on the up and there is scope for further increase.

Till the demand from the power sector strengthens and stabilizes, CIL is eyeing sponge iron, CPPs, Cement and Aluminum sectors etc. with a two-fold aim. To ramp up volume despatches and substitute imported coal with domestic coal.

CIL has communicated with over 300 coal importers seeking their requirement from domestic sources. The international coal prices taking a northerly route in the last fortnight could offer CIL an opening.

Spurred by increased appetite for coal from non-power sector Coal India’s (CIL) overall off-take went up by 8% during November’20 compared to same month year ago. Supply to non-power sector was up by a robust 46% during the month.

CIL’s off-take was 51.3 Million Tonnes (MTs) in November of the ongoing fiscal, an increase of 3.8 MTs compared to 47.5 MTs of same month last year. Sectors other than power accounted for the entire increase.

Coal production at 51.7 MTs during the referred month clocked a growth of 3.3% with 1.7 MTs uptick in absolute terms. CIL produced 50 MTs in November’19. MCL with 19.7 % growth and CCL with 10.3% growth were ahead of other subsidiaries of CIL.

With the non-power consumers showing a tendency to lift more coal CIL’s supply to this sector has risen to 12.3 MTs in November’20 logging a growth of 46% compared to 8.4 MTs in November '19. Non-power sector’s lifting accounted for 24% of the month’s total despatch. This sector predominantly consists of cement, sponge iron, captive power plants and a host of other industries. Progressive up to November’20 the growth in supplies to non-power sector was 14% at 80.6 MTs.

“We are reorienting our marketing plans. With the demand from power sector yet to boom fully we are concentrating our efforts on non-power consumers to expand our sales volume. Till there is demand resurgence from power sector we shall follow this, which is helping us” said a senior executive of the company.

83 power plants have regulated lifting of coal in November. Of this, 26 have considerably reduced their programme placed for rakes against their entitlement. The remaining 57 have not filed their programme for rakes which led to demand stagnation during the month.

Power Sector of the country is stocked with 37.4 MTs of coal at their end sufficient for 22 days. With CIL riding high on 53.5 MTs pithead stock a combined stock of 91 MTs is available in the system sufficient to meet any demand surge. After a spurt of 14% in October, supply to power sector has come down to a flat growth in November at 39.1 MTs due to weakened demand.

Average loading per day to non-power sector during the month marked a steep 59% growth at 40 rakes per day against 25 rakes, same month last year. Total rake loading went up by 20% as CIL loaded 264 rakes per day in the current fiscal’s November against 220 rakes in November’19.

Laying impetus on use of alternative green energy source, to power its mining operations, Coal India Limited (CIL) is venturing to set up 14 rooftop and ground mounted solar power projects of 3,000 MW capacity by FY’24. CIL is mandated by the Ministry of Coal to become a Net Zero company. Solar power initiative is a part of CIL’s diversification plans.

The likely investment would be around Rs.5,650 Crores. While Rs.3,650 Crores is planned to be invested through CIL’s Capex, till 2023-24, the rest would be met through joint venture models that the company intends to pursue for this initiative.

CIL and NLC India Limited synergizing their efforts have floated a joint venture entity ‘Coal Lignite Urja Vikas Private Limited’ to develop 1,000 MW Solar Power Projects. This came into being on 10th November.

CIL has also tied up a JV with NTPC and an MoU with Solar Energy Corporation of India for solar projects of 1,000 MW each, the progress of which is being worked out individually.

Additionally, the solar power initiative helps CIL reduce its whopping annual power consumption expense, which was around Rs. 3,400 Crores ending FY’2020, accounting for around 4.4% of the revenue expense for the year. Any saving under the power bill would also bolster the bottom line of the company to that extent.

Beginning with a modest 10 MW solar capacity during the ongoing fiscal, CIL would gradually peak up to 1,340 MW in 2023-24. For FY'23 solar power capacity addition is targeted at 1,293 MW, with 220 MW capacity to come up in 2021-22. Besides establishing solar projects, CIL is in discussions with NTPC Limited for purchase of 140 MW solar power under the Government of India’s CPSE Scheme. Cumulatively, it adds up to little over 3,000 MW by FY’24.

CIL’s subsidiaries have already identified 1,156 acres of land between them where they will set up 220 MW solar projects by end FY’ 22. For 2022-23 and 2023-24 CIL is eyeing to set up solar projects on pan India basis subject to power evacuation facility by central transmission utility.

In a modest way solar power generation has already been commissioned by CIL and its subsidiaries which generated 4.6 Million Units in FY’20 and 4.25 Million Units in FY’19. This amounts to a reduction of over 3,000 tonnes of carbon dioxide emissions in each year. 1 Million Units of solar power generation brings down Co2 emissions by a little over 700 tonnes.

Coal India’s (CIL) pitch for efficient and environment friendly mechanized coal transportation in its First Mile Connectivity, replacing the road movement, gained pace with the company successfully issuing tenders for all the 35 projects, of Phase-1, by September’20 as planned. First mile connectivity refers to transportation of coal from CIL’s pitheads to despatch points.

Coal Handling Plants (CHPs) and Silos for rapid loading system would be commissioned across six of CIL’s subsidiaries, under the tenders.

To come up by FY’24 at an estimated investment of Rs. 12,500 Crores the coal handling capacity of the 35 projects will be 406 Million Tonnes per year (MT/Y). Each of these mining projects have production capacity of 4 MT/Y and above. The expenditure would be met out of CIL’s Capex.

Under mechanized transportation, coal would be moved through piped conveyor belt mode promoting cleaner environment. With reduced movement of coal laden trucks on roads it brings down dust pollution to the comfort of people residing in the proximity of the mines. CIL is undertaking a study through National Environmental Engineering Institute (NEERI), Kolkata particularly for assessing and quantifying benefits of environmental aspects of these projects.

CHPs and Silos will have benefits like crushing and sizing of coal and speedy computerized loading. Another upside is that with the reduced manual intervention, precise pre-weighed quantity of coal can be loaded. It also spurs loading of better quality coal.

“Improved loading time will bring down the wagon idling thus increasing their availability. Easing the load on road networks induces savings on diesel as well apart from positive environmental considerations. It will be an all-round win-win situation for the company, railways, consumers and villagers in the proximity of the mines,” said a senior executive of the company.

Currently, CIL spends around Rs. 3,400 Crores on coal transportation costs which could be brought down substantially with the introduction of mechanized coal transport in the first mile. CIL also expects more than12% internal rate of return once it switches over to the mechanized transport means.

Already, mechanized conveyor system and computerized loading is operational in 19 projects of CIL having 151 MT/Y capacity. With the commissioning of the 35 Projects it would be spiked up by an additional 406 MTs, making it a total of 557 MT/Y by 2023-24 giving fillip to CIL’s efforts in quality and quantity loading.

Of the 35 projects, SECL (136 MT/Y), MCL (126 MT/Y) and NCL (63 MT/Y) account for 9 each. CCL (46 MT/Y) with 4 projects, ECL, 3 with (27 MT/Y) and WCL (8 MT/Y) with a solitary project add up to the rest.

Coal India's booked quantity of coal under e-auctions nearly tripled to 16.8 Million Tonnes (MTs) in October’20 compared to 5.8 MTs of October last year, on the back of a big push from power sector and other coal buyers.

The steep growth of 190% or an increase of 11 MTs, during the month, bodes well for CIL as it signals a strong demand resumption for coal after a Covid led hiatus.

Volume booking in e-auctions for the first seven months of the ongoing fiscal ending October at 59 MTs, increased by 28 MTs translating into a growth of 90%. For a comparable period last year CIL booked 31 MTs.

October’20 auction sale, in addition to the four prevailing windows, included a new auction outlet called special spot for coal importers, under which 1.6 MTs of coal was booked. CIL in a first, has introduced this category meant exclusively for coal importers to contain imports from abroad. “This opened an additional avenue for our coal companies to step up their sales” said a senior executive of the company.

Coal that went under auction hammer during October’20 fetched CIL 13% increase over the notified price. Special spot for coal importers chipped in 14% increase over the notified value.

With the onset of the covid pandemic CIL has brought down the reserve price close to zero during the first half of the present fiscal. It was only in October, as a bellwether, CIL introduced an add-on ranging from zero to a maximum of 10% over the notified price to test the market trend.

“From November onward we have reverted back to the pre-covid status where subsidiaries of CIL will determine their own add-ons. Gauging the response we are confident of stable auction sales and increased premiums in the ensuing months” said the referred executive.

In a clear indication of growing demand from power sector, CIL’s special forward auction, meant specifically for this sector, booked 6.5 MTs in October accounting for 38.7% of the total booked quantity of the auction. Compared to 2 MTs booked in September’20 the growth has zoomed up to 225% in October.

Unstructured coal market composed of consumers and traders having no direct access for purchase of coal have shown healthy appetite in volume bookings as is evident from the spot auction and special spot auction applicable to all buyers of coal. These two auctions with a booking of 5.4 MTs constituted 32% of October auction sales. Compared to 2.4 MTs booked under these auction in September’20 the growth is 125%.

E-auction booking during first seven months of the current fiscal ending October fetched a premium of 10% over the notified price.

During April-October’20 non-power sector consumers in exclusive e-auction booked 12 MTs more coal at 16.8 MTs than it did in the same period last year when the booked quantity was 4.8 MTs.

Propelled by the recent demand Power Sector’s progressive booking ending October’20 was 16.5 MTs, under special forward e-auction - an increase of 3.6 MTs or 28% growth compared to 12.9 MTs ending October’19.

Indicating demand revival for the dry fuel, Coal India Limited (CIL) posted a strong 25% rise in coal off-take for October’20 at 50.5 Million Tonnes (MTs). This represents a volume increase of 10.1 MTs compared to 40.4 MTs that the company supplied in the same month a year ago. All the subsidiary companies of CIL recorded growth in supplies.

Sustaining the growth momentum, CIL produced 46.8 MTs of coal in October'20, a 18.7% jump compared to 39.5 MTs produced in October'19. The increase in absolute terms was 7.4 MTs. With its production impeded by the covid slowdown during the first four months of the present fiscal, CIL started logging positive growth from August onward on monthly basis. For the first time CIL posted a positive growth for the year at 0.9% ending October. Production during April-October'20 was 282.9 MTs which is 2.5 MTs more than what was produced during the same period last year.

"Though the progressive growth in output was nominal, importantly we could wipe off the negative trend and now look forward to consolidate the positive pattern for the rest of the fiscal" said a senior official of the company.

The decline in off-take growth for the year was arrested by more than half to 3.5% in October from that of 7.6% in the previous month. By November closure CIL hopes to neutralize the negative growth and start on the path of recovery.

Increased coal output helps reduce core sector contraction

As the country's core sector output contraction narrowed sharply to 0.8% in September'20, growth in the coal sector was 21.2%, the highest among all the eight core sector industries, compared to the same month last year. CIL's contribution was sizeable in this.

Besides coal, only two other core sectors clocked positive growth during September'20.

Eight industries of the country are categorized as core sector, including coal. Together they comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP). Weightage of the coal sector in the eight core sectors' index is 10.33%.

CIL’s robust 31.6% year-on-year production growth in September'20 at 40.5 MTs aided substantially in narrowing down the contraction as could be surmised by the numbers. Out of the country's total coal production of 48.6 MTs for September, CIL's production accounted for 83.3% of the entire coal output.

In volume terms, CIL's production increased by a strong 9.73 MTs in September'20 against the same month in 2019. In the event of CIL not logging any growth in September the country’s coal output would have slid down from 48.6 MTs to 38.9 MTs leading to a negative growth of 3.07% compared to 40.1. MTs of coal produced in September '19.

A shortfall of 3.07% growth in coal production, instead of a healthy 21.2% increase recorded, would have resulted in a larger negative growth of the core sector's output than the narrowed down 0.8%.

CIL increased its supplies to the power sector to 36.4 MTs in September'20 against 29.2 MTs in the same month a year ago posting 24.7% growth. Growth in electricity generation was 3.7% during September in the core sector index.

Coal India Limited (CIL) for the first time in the ongoing fiscal on 20th October neutralized the negative growth in coal production for the year. The coal production of 265.69 Million Tonnes (MTs) as of date was at level with last year’s output on the same date with the company posting a marginal 0.04 MT increase in volume terms.

Mahanadi Coalfields Limited with progressive coal production of 71.17 MTs, on 20th October, which is a 9.61 MT increase on year-on-year comparison and Northern Coalfields Limited at 60 MTs logging a jump of 3.15 MTs during the referred period have played catalytic role in wiping off CIL’s negative production trend.

Also, what made this possible was that beginning August’20 CIL began posting strong growth in production and off-take. Scripting a new high the company recorded the highest ever production and off-take growth in September’20 clocking 31.6% and 31.7% respectively. For October as well till 20th CIL recorded around 20% growth in output and 24.3% in off-take.

“From now on ramping up coal production would not be a problem especially with coal seams exposed, and ready for production, due to a phenomenal growth of 71% in over burden removal in September ’20 and 22.3% during first half of the fiscal” said a senior executive of the coal behemoth.

CIL induced by Covid stifled slowdown, during first quarter of FY’21 suffered 11.6% growth constriction in production and 21.5% slump in off-take. Considering this huge set back the company came back strongly in expunging the negative trend in output on 20th October.

With the industrial and commercial activity picking up from July onwards and demand for coal showing signs of improvement CIL could shrug off the Q1’s tepid growth and clocked a robust 10.6% production increase and near 10% growth in off-take during Q2 of the present fiscal compared to Q2 of FY’20.

Coal off-take till 20th October of the current fiscal at 287.19 MTs is trailing by 4.9% compared to same date last year.

“However, we are confident of removing the negative trend in coal off-take by November and grow from there on especially with thermal power plants and non-regulated sector customers showing keenness to lift increased quantities of coal. There is also a spike in the auction sales” said the referred executive.

Coal India Limited (CIL) on Thursday declared a Performance Linked Reward (PLR) of Rs. 68,500 per employee to all its non-executive cadre workforce for the year 2019-20. This is linked to their attendance during the period. The payment would be made before 22 October.

The total estimated financial implication is a little over Rs. 1,700 Crores on account of the PLR. Around 2.62 Lakh employees of CIL and its eight subsidiary companies who were on the company’s roll in the FY’20 will stand to gain the PLR.

Despite the pandemic slowdown and crimp in coal sales, CIL offered a 5.87% rise over the earlier year’s PLR of Rs. 64,700 per employee, the absolute increase being Rs.3,800.

The non-executive employees who have completed at least 30 working days during 2019-20 will be eligible for the payment on a pro-rata basis.

The pact was amicably sealed in the 10th meeting of the Standardization Committee of the Joint Bi-partite Committee of Coal Industry (JBCCI-X) held in Ranchi on Thursday between CIL’s management and representatives of the central trade unions. Mr. R P Srivastava, Director (Personnel & Industrial Relations) and Mr. Sanjiv Soni, Director (Finance) represented CIL in the negotiations. CMD of Northern Coalfields Limited and Directors (Personnel) of subsidiary companies were other members who made up the team.

“We are happy that we could conclude the performance related reward on time to the satisfaction of both sides for the benefit of our employees. The company always enjoyed harmonious industrial relations with the unions” said a senior executive of the company.

CIL turned the corner in September'20 with its output and supplies scripting a high growth of nearly 32% in both the parametres. The company is sustaining the performance pace during the ongoing month as well.

"The payment ahead of the festive season should enthuse our employees to put in greater effort to raise our performance levels significantly", said the referred executive. CIL is a manpower intensive industry and the largest corporate employer in the country.

Coal India's (CIL) efforts in its Bal Sewa Yojana, the treatment of underprivileged Thalassemia patients aged below 12 through Bone Marrow Transplant, on Wednesday received appreciation from Shri Dr. Harsh Vardhan, Hon'ble Union Minister for Health and Family Welfare. In a virtual programme, felicitating CIL and its CSR team he lauded CIL's endeavour in providing such facility to below poverty line patients suffering from hematological disorders. Children whose parents' annual income is below Rs.5 Lakhs are eligible under the scheme.

Earlier, recommended by the MoH&FW, CIL was the first CPSE to have launched such a programme in April 2017 at a time when there was no Central scheme to treat thalassemia patients. CIL took up the role as a Corporate Social Responsibility (CSR) measure with an outlay of Rs.20 Crores, extending Rs.10 Lakhs per patient at the maximum. 136 patients were benefited under the scheme so far in its first phase.

With the operational guidelines drawn by MoH&FW, CIL has identified Six treatment centres across India for conducting Bone Marrow Transplant for Thalassemia patients.

On the occasion, the Hon'ble Union Minister also launched CIL's second phase of the programme expressing his satisfaction over the initiative. It includes treatment of Aplastic Anaemia along with Thalassemia patients expected to benefit more than 200 patients with an additional grant of Rs.20 Crores in 2020, Two more hospitals have been added to the existing Six for the treatment.

Hon’ble Minister also appreciated efforts of CIL and its coal companies during covid pandemic in providing succour through food and water to migrant labour travelling in trains and setting up over 1500 beds for isolation for dedicated covid health care.

Aside from being the country’s major producer of coal, CIL’s CSR spend is also among the top in the country as is reflected in the numbers. The total CSR spend by CIL and its eight subsidiary companies during the last five years, ending 2019-20 was over Rs. 3,000 Crores.

CIL and its subsidiaries have spent around Rs.588 crores on CSR during FY’20 encompassing education, rural development, healthcare, women empowerment, skill development, sports among others.

As per the amendment in the Companies Act 2013 and Department of Public Enterprises guidelines the CSR budget of CIL and its subsidiaries is based on 2% of average net profit (profit before tax less dividend) of the company for three immediate preceding financial years. Whereas CSR policy of CIL stipulates Rs. 2 per tonne of coal produced in the previous year. But, CIL allocates its CSR Budget based on whatever amount is higher of the two.

Coal India’s (CIL) total coal allocation under its four e-auction windows logged a robust 65% rise during the first half of the ongoing fiscal over last year's same period. Last year’s coal import trend revealed that 40% of coal imports were by traders. CIL decided to give more thrust in auction sales which resulted in higher volumes. This is also in line with government’s push on ‘Atma Nirbhar’ in the energy sector.

CIL booked 41.4 Million Tonne (MTs) raw coal in e-auctions during April-September’20 compared to 25.1 MTs booked in the corresponding period last fiscal. The increase in volume terms was 16.3 MTs. With the industrial and commercial activity reviving post unlock, CIL is hopeful that the demand sustains and the sales would boost soon. With no dearth of coal the company is confident of meeting the increased demand.

“Even with the pandemic slowdown CIL could net 10% average premium over notified value in the first six months of the current fiscal compared to 48% of same period year, but the aim was to increase volume supplies” said a senior official of the company. “We anticipated the liquidity crunch that covid would bring to our customers and brought down the reserve price close to zero to help them lift more coal during the lockdown phase”, he added. In two tranches of three months each CIL kept down its reserve price beginning April till September.

After the company’s Board has given its nod, CIL for its October’20 auctions has injected an increase in reserve price ranging from zero upto a maximum of 10% over the notified price, as a dipstick survey to gauge the market response. Based on the market reaction and the premium fetched from sale prices the company will decide on reserve price for November ’20.

In volume terms, the booked quantity under spot e-auction was highest at 16 MTs during H1 FY’21 clocking a growth of 43% compared to 11.2 MTs booked in April-September’19. Spot e-auction is meant for both regulated and non-regulated customer base.

It was followed by 13.4 MTs booked in exclusive auction for non-power consumers. Special forward auction for power producers bagged 10 MTs while special spot auction yielded 2 MTs during the period.

With the power sector sated having 34.2 MTs coal stock sufficient for 19 days and no plant in critical condition for want of coal at September’20 end, CIL could focus on non-power segment where the response from exclusive non-power e-auction was rousing in growth terms with almost a five-fold jump.

Exclusive auction for non-power consumers during the referred period at 13.4 MTs was up by 11.1 MTs against 2.3 MTs that this sector booked last year same period. In the growth terms the rise is a whopping 482%.

Coal India's (CIL) capital expenditure at Rs.5,023 Crores ending first half of the ongoing fiscal capped an all-time high of 118% utilization against the provisioned target of Rs.4,247 Crores.

"This is a historic high in capex utilization as CIL has not exceeded 30% target utilization in the first half of a fiscal so far. The previous three year average of H1 capex utilization has been around 20%" said a senior official of the company.

CIL during April-September’20 clocked a robust capex growth of 242% compared to same period last year. The actual capital expenditure of Rs.5,023 Crores in the H1 was up by Rs.3,556 Crores against Rs.1,467 Crores in April-September'19.

Actual capex ending Q2 of the current fiscal at Rs.4,179 Crores was up by Rs.3,165 Crores compared to Rs. 1,014 crores same quarter last year logging a whopping 312% growth. In the Q2 as well CIL achieved 118% utilization breaching the provisioned target of Rs. 3,527 Crores.

Recently the government has asked CPSEs, including CIL, to speed up their capital expenditure to boost growth especially by the end of second quarter of FY’21. CIL’s capex spend during the H1 ended September’20 was a little over half of the entire FY 21 capex of Rs.10,000 Crores.

Hon’ble Minister of Coal has been closely monitoring the progress of processes like land acquisition, setting up of rail logistics and associated infrastructure and mine development of especially mega mine projects and speeding them up. Payments were made for acquisition of land post covid unlock. Major high value tenders could be concluded on time and heavy earth moving equipment (HEMM) was procured. CIL’s robust capex spending came on the back of these issues.

Among the major heads, purchase of HEMM at Rs.1,360 Crores accounted for 27% of the total capex of the current H1. It was followed payments for acquisition for mining operations which made up close to 26% of the capex where CIL spent Rs 1,289 Crores. Setting up important rail lines and developing sidings constituted around 21% of the H1 capex. CIL spent Rs.1,078 Crores under this head. These three heads combined at Rs.3,726 crores made up for around 74% of the first half’s entire capex. The components for the rest 26% or Rs. 1,297 Crores include mine development, coal handling plants, silos, roads, exploration and prospecting, other plant and machinery and joint venture investments.

“Land acquisition on fast track mode with the support of Ministry of Coal and modernization of equipment and deployment of it in OC mines will pave way for ramping up our production, productivity. Concurrent development of rail and other logistics will boost evacuation facilities to transport increased output" said the official.

Scripting a new high Coal India Limited (CIL) recorded the highest ever growth in production and off-take, for any month of September so far, by clocking 31.6% and 31.7% respectively. For the first time in the current fiscal growth was in double digits in both the facets with all CIL’s subsidiaries turning out growth. Supplies to power and non-power sector consumers and rake loading also registered high level growth.

Production

Coal production at 40.51 MTs in September’20, surged ahead by a robust 9.73 MTs increase in absolute terms, compared to 30.78 MTs in September’19, the growth being 31.6%. Among CIL’s subsidiaries the top three leading the growth trend were Mahanadi Coalfields Limited (MCL) with 68.5% followed by Central Coalfields Limited (CCL) 47.4% and Western Coalfields Limited (WCL) 43.7%.

“Now that we broke the growth jinx in output and off-take, which were weighed down by the pandemic induced slowdown, we expect to better our performance in the ensuing months. We aim to reclaim as much of the lost ground as possible during the rest of the fiscal” said a senior official of the company, adding “generally the H2 performance is higher in terms of production and supplies”.

Off-take

CIL’s coal off-take saw a sizeable jump of 11.2 MTs during the referred month. CIL supplied 46.46 MTs in September’20 against 35.28 MTs same month last year logging a growth of 31.7%. MCL again registered the highest growth among the subsidiaries with 63% followed by WCL 60.2% and CCL 31.5%.

Supplies to non-power and power sector

Supplies to non-power sector logged a growth of 65% in September’20 at 10.04 MTs compared to 6.08 MTs in September’ 19. Coal despatch of 36.42 MTs to Power Sector during the month witnessed a growth of 24.7% compared to 29.20 MTs as of September’19, the increase in absolute terms being 7.2 MTs.

Rake Loading

CIL on an average loaded a total of 241.2 rakes per day in September’20 against 162.2 rakes same month last year recording an increase of 79rakes per day with a growth of around 49%. Loading to non-power sector doubled to 31.2 rakes per day during the month compared to 15.4 rakes of last year’s September. Loading to Power sector bagged a growth of nearly 43% at 210 rakes per day against 147 rakes for the comparable period.

Positive growth in Q2

“Despite Covid related challenges and inclement monsoon our production increased by 11 MTs and off-take by 12 MTs during the second quarter of the present fiscal” said the stated official.

CIL produced 115 MTs of coal for the July-September’20 period against 104 MTs same quarter last year logging a growth of growth of 10.6%. CIL supplied 134.4 MTs of coal during current year’s Q2 compared to 122.4 MTs same quarter last year registering a growth close to 10%.

Supplies to coal fired power utilities during current year’s Q2 at 103.2 MTs also logged a growth of around 3%. CIL supplied 100.29 MTs during same quarter last fiscal. Overall average loading during current year’s Q2 at 224.6 rakes per day registered a growth of 23.6% compared to 181.7 rakes loaded in the same quarter last year. Loading to power sector at 189.7 rakes/day in Q2 clocked a growth of 16% over last year’s Q2.

Coal India Limited (CIL) on Friday last floated an open global tender inviting bids for setting up a, first of its kind in India, coal to methanol (C2M) plant through surface coal gasification route on Build-Own-Operate (BOO) model. Based on the outcome of pre-feasibility studies CIL has floated this tender to select the BOO operator for the life span of the plant which is expected to be 25 years. “This is a part of implementing the Methanol Economy program of the government aimed at reducing the country's oil import bill”, said a senior executive of the company.

CIL owned Dankuni Coal Complex (DCC) in West Bengal, currently run by its subsidiary South Eastern Coalfields Limited, is identified as the project site for the proposed C2M plant.

The capital outlay of the entire plant is pegged at around Rs.6,000 Crores though the cost would not be borne out of CIL’s coffers. BOO operators would own and lease the plant, apart from designing, building, maintaining, producing and storing the product. However, CIL shall allocate the land, power, water to the operator for the proposed plant. Land is available.

Approximately 6.76 Lakh Tonnes of methanol per annum is targeted to be produced from the plant to be used for blending with petrol up to 15%. At this capacity the plant will cater to the methanol requirement of four eastern states of the country - West Bengal, Odisha, Jharkhand and Bihar. CIL is in dialogue with IOCL and other government owned oil companies for long term tie up for assured marketing of methanol.

CIL would also supply the low ash high calorific coal of Ranigunj coalfields, having an ash content of around 24%, as basic raw material for the production of 2,050 metric tonnes of methanol per day. CIL would meet around 1.5 Million Tonnes of coal requirement annually.

CIL has aligned itself with the national objective of reducing dependence on imported crude and the plan to set up the plant is a step in that direction. “It would also reposition coal as chemical feedstock from that of a conventional energy product resulting in considerable decrease of carbon foot print”. India is signatory to COP 21, Paris Climate Change Conference.

Project Developments India Limited (PDIL) the government owned consultancy and engineering CPSE has been retained as the consultant for the selection of the BOO operator.

Prospective bidder should be an established BOO operator having successfully built plants on BOO basis in coal to liquid, coal gasification, coal to chemical, fertilizer and methanol and the like. While the mechanical setup of the plant is expected to be completed in 36 months, the actual commissioning of the plant is envisaged to be in 41 months. The last date for the submission of bids is 17 December’20.

DCC is a low temperature carbonization plant set up under the fuel policy committee to meet the growing needs of environmental friendly fuel requirements of domestic and industrial sectors. Commercial production of DCC has started in 1990.

Coal India Limited (CIL), in a bid to evacuate increased quantity of coal through rail mode from potentially high yielding opencast mines of its Chhattisgarh based subsidiary South Eastern Coalfields Limited (SECL), has formed two Special Purpose Vehicles (SPV) for construction of rail lines. Chhattisgarh East West Railway Limited (CEWRL) to construct a 135 Km east-west rail corridor at an estimated cost of Rs. 4,970 Crores and the other a Rs. 3,055 Crore SPV called Chhattisgarh East Rail Limited (CERL) to develop 136 Km east rail corridor. CERL is already partly operational.

Setting the wheels in motion, two large value tenders for the construction of 135 Km rail line from Gevra Road to Pendra Road, to be developed by CEWRL have been floated recently.

The joint venture partners in CEWRL include SECL representing CIL and Ministry of Coal with 64% stake and IRCON representing Indian Railways with 26% stake. Chhattisgarh State Industrial Development Corporation Limited is the third partner chipping in with the rest 10% stake.

IRCON, the construction arm of Indian Railways which is the executing agency has floated the tenders for the work after the SBI led consortium of 6 banks who are the lenders to this important rail corridor released Lenders Confirmation Notice (LCN) for Rs. 400 Crores as first disbursement in the first week of September’20. Engineering plans for CEWRL were already in place and now with finance tied up tender has been floated.

The east-west corridor also includes a single rail line of 16 Km from Urga to Kusmunda and feeder lines of around 35 Kms in the region. The 135 Km Gevra road to Pendra road is a double line.

“After commissioning, the east-west line will have the capacity to move around 65 Million Tonnes (MTs) of coal per annum from Mand-Raigarh and Korba coalfields of SECL benefitting power plants in western and northern India” said a senior executive of CIL, adding “this rail project is anticipated to be completed by 2023”. CIL has planned the two major lines concomitantly with the development of Mand-Raigarh coalfields.

CEWRL’s east-west corridor is funded on a debt equity ratio of 80:20. Whereas the total equity is Rs.994 Crores the debt amounts to Rs. 3,976 Crores making it a total of Rs. 4,970 Crores. The cost of equity is borne as per the shareholding pattern of the SPV.

Of the debt portion of Rs. 3,976 Crores SBI shall be financing Rs. 1,714 Crores. Punjab National Bank, Bank of Baroda, Canara Bank and Union Bank of India shall finance Rs. 476 Crores each while Indian Bank shall finance Rs. 358 Crores.

A 44 km rail line of east rail corridor from Kharsia to Korichapar constructed by CERL turned operational in October’19. This line will eventually extend to Dharamjaigarh and finally till Korba. CERL which has the same JV partners on a similar holding pattern as that of CEWRL has the evacuation capacity of 35 MTs/Year. Both the rail lines reduce the saturated load of Howrah- Mumbai rail line.

Plans are on the anvil by Coal India Limited (CIL) to retrieve production from its discontinued underground mines. The company has so far identified 12 such mines with provisional mineable reserve of around 1060 Million Tonnes (MTs). Of these 12 UG mines, 8 belong to Eastern Coalfields Limited (ECL) and the remaining 4 fall under Bharat Coking Coal Limited (BCCL), spread over the states of West Bengal and Jharkhand.

“The project is on the drawing board but CIL aims to start the process soon to bring these mines back to active production. This is in effort to increase production through indigenous sources” said a senior executive of the company.

CIL is keen to fast track the issue once Central Mine Planning and Design Institute (CMPDI), its in-house mine consultancy arm, which has been entrusted to prepare a data dossier submits its report on the feasibility.

These mines were discontinued not because of exhaustion of reserves but on several considerations like difficult geo-mining conditions, economic unviability and non-availability of suitable methods to extract deep-seated reserves at the time. These mines combined, have substantial reserves.

While the 8 mines of ECL have projected estimated reserve of around 596 MTs, the 4 four mines belonging to BCCL add up to 464 MTs. Coal of underground mines is generally of high quality and the ECL mines have coal of varying grades between G3 and G7 with one mine having coking coal which is used in steel making. All four mines of BCCL are of coking coal reserves which are scarce in the country.

The Ranchi based CMPDI shall prepare the study on sufficiency of extractable reserves in consultation with the concerned subsidiary coal companies to prepare a detailed list for revisiting the discontinued mines for production. Subsequently, coal companies will float tenders as per their requirement to engage suitable Mine Developer and Operators and others having requisite technical knowhow to pursue the operations on their behalf.

Different mines were discontinued in different years in the past, some dating back to more than 20 years.

Coal India Limited (CIL) shrugging off the covid constricted growth and monsoonal downpour came back strongly in the month of August'20 logging 9.3% growth in coal off-take and 7.1% growth in coal output compared to August a year ago. For the first time in the ongoing fiscal, CIL has clocked growth in both the facets. Over burden removal (OBR) registered a growth of 37% during August’20, while composite OC production, which is the sum total of the OBR uncovered and coal produced through opencast mines, witnessed 30% growth against same month year ago.

“The growth slowdown is contained and going forward in the ensuing months of the fiscal we endeavour to maintain our production and off-take tempo” said a senior official of the company.

CIL as whole supplied 44.34 Million Tonnes (MTs) of coal to different consuming sectors during the referred month against 40.57 MTs in August’19 with a growth of 9.3%. Increased supplies in volume terms during the month was 3.77 MTs. Mahanadi Coalfields Limited (MCL) clocked a robust 40.4% growth followed by 10.4% growth by Bharat Coking Coal Limited and South Eastern Coalfields Limited (SECL) 7.6%.

Showing signs of improvement, despatch of coal and coal products to power sector including special forward e-auction grew by 2% in August’20. Despatch to power sector was 34.20 MTs in the current year’s August against 33.47 MTs same month last year. Supplies to Non-Power Sector during August’20 witnessed a growth of 43%. CIL despatched 10.14 MTs to its non-power consumers in this year’s August against 7.10 MTs same month year ago. Increase in absolute term for the month was 3.04 MTs.

Coal production at 37.17 MTs during August’20 was up by 2.47 MTs compared to 34.70 MTs same month year ago, the growth being 7.1%, even amidst heavy rainfall in some of CIL’s producing companies. MCL recorded a remarkable 45.6% coal output growth despite having received 41% more rainfall in August’20 than a year ago month. NCL registered 7.6% production growth. Since the beginning of the monsoon from, 1st June till end August’20, MCL was beleaguered by 45% of increased rainfall compared to same period last year.

CIL's OBR, which in the previous months has been growing sharply, surged ahead by 37% growth in August’20 compared to August’19. CIL has excavated 81.94 Million Cubic Metres (M.CuM) during the referred month against 59.79 M.CuM in August ‘19. All of the CIL’s subsidiaries recorded growth in excavating OBR with MCL clocking a whopping 115% growth followed by NCL 52% and WCL 40%.

CIL logged 30% growth in composite opencast production for August’20 compared to same month a year ago. The composite production was 103.73 Million Cubic Metres (M.CuM) for August’20 against 80 M.CuM in August’19

Coal India Limited (CIL), for purchase of 96 Dumpers of 240 Ton capacity, has issued a letter of award of Rs.2,900 Crores to Belaz, the Belarus based mining equipment manufacturer. CIL is endeavouring to ramp up its production and productivity and modernizing its equipment is a step in that direction. The Maharatna Company’s Board has given its nod to close the deal.

The amount for the purchase of the Dumpers would be met out of the company’s own finances. Dumpers are primarily used in opencast mines and aid in the transport of bulk materials like over burden, which is an important performance criterion.

The purchase package includes the cost of the Dumpers and spares for eight years including the one year warranty period. Belaz bagged the contract through a global tender process.

The first batch of 6 Dumpers would start rolling in within eight months of signing of the contract. Thereafter, on CIL’s green signal of their performance the remaining quantity would be delivered in batches of 4 every month.

“This move is in line with improving our production and productivity in opencast mines” stated a senior company executive.

The latest addition of these 96 Dumpers to CIL’s heavy earth moving machinery fleet would be deployed in South Eastern Coalfields Limited (SECL) taking the total tally of its 240 Ton Dumpers to 162, with 66 previously in operation. 240 Ton Dumpers are of the highest capacity in the country presently and in CIL they are deployed only in SECL.

84 of the 96 dumpers would be put into operation in the Gevra project and the remaining 12 in Kusmunda. Both are mega opencast projects of SECL. Once deployed, Gevra's count of 240 Ton Dumpers would swell to 116, with 32 already existing. The number would go up to 32 in Kusmunda with 20 currently operational.

Laying emphasis on modernization and replacement of its aging equipment, CIL has earlier procured 77 Dumpers of 150 Ton Capacity from Belaz for Gevra project. To be operationalized in five OC projects of Northern Coalfields Limited (NCL), in a first, CIL has ordered 190 Ton capacity Dumpers numbering 102 from Caterpillar. While NCL projects account for 84 of these 102, the rest 18 are deployed in Rajmahal project of Eastern Coalfields Limited.

SECL, is the largest coal producing subsidiary of CIL which contributed to 25% of CIL’s total coal output of 602 Million Tonnes in 2019-20. Close to 61% of SECL’s total coal production is derived through opencast mines where the Dumpers play a productive role. Incidentally, SECL also contributed to 47% of CIL’s total UG production during 2019-20.

Coal India Limited (CIL) has sought the consideration of Railways for extending a benefit of 15% freight concession, for transportation of domestic coal booked by its customers under import substitution scheme, located in the distances of 701 to 1400 Kms from its mines. The move is aimed at broadening the customer base to bring in more consumers under import substitution plans. The request is in line with the benefit given to Iron ore.

This step by CIL comes in the wake of a recent Railway Board decision which granted a 20% distance based concession in rail freight price for transportation of coal and coke, among other commodities, for distances in excess of 1400 Kilometers (Kms). The concession is on normal tariff rate (NTR). However, after applying the concession, freight price should not be less than the NTR for distance upto 1400 Kms. Effective from 1 July of the ongoing year the freight price concession would be valid till 30 June 2021.

“Extension of freight concession also to customers located in 701 to 1400 Kms could result in substantial domestic coal lifted by them in place of coal sourced from abroad due to lesser cost in coal conveyance,” said a senior executive of the company. CIL’s coal would then be competitive with the landed price of imported coal and customers may opt for domestic coal.

Out of 126 coal based thermal plants linked with CIL, 14 thermal power plants located over 1400 Km distance are eligible for the freight concession presently. This prompted CIL to approach the Railways to seek freight concession in distances 701 to 1400 Kms as well to bring more customers under the ambit of the scheme. If this happens it would be a shot-in-the-arm for CIL in its efforts to substitute imported coal with its own produce.

Close to 70% of CIL’s overall supply consists of G9 to G13 grades of coal for which the freight price is around 40% to 45% of the total landed cost at consumption point. With the increased distance above 701 Kms the freight cost climbs up further. If concession in freight price is offered to customers falling in this range, it would be beneficial to coal producers to step up domestic supplies substituting imported quantities.

The14 plants located over 1400 Km distance, eligible for 20% freight price concession, have supply contracts of 42 MTs per annum with CIL. In the event of these plants opting to lift the entire linked quantity from coal companies, the total estimated financial benefit would be around Rs. 880 Crores per year. It would range from Rs. 1 Crore at the lower end to Rs. 380 Crores at the highest. 6 non-power consumers account for 1.37 MTs of annual supply quantity with an estimated financial impact of Rs. 12 Crores on account of freight concession.

The price of CIL’s coal is considerably low compared to imported coal. But statutory levies and rail freight makes the landed cost of its coal less competitive compared to imported coal, particularly in the western and southern parts of India.

Coal India Limited (CIL) clocked 17% growth in composite opencast production for July 2020 compared to same month a year ago. This is sum total of Over Burden Removal (OBR) and the amount of coal produced through OC means. The composite production was 110.40 Million Cubic Metres (M.CuM) for July 2020 against 94.4 M.CuM in July 2019.

"For CIL which relies on opencast mines for 95% of its entire annual coal output, OBR is a crucial performance indicator which exposes the coal seam for future production at short notice" said a senior executive of the company.

CIL's OBR alone in July 2020 surged ahead by 23.1% growth compared to July’19 and progressive July’20 OBR growth jumped by 12.4%. CIL has excavated 88.46 M.CuM of overburden in the current year's July against 71.85 M.CuM in July 2019.

In volume terms Northern Coalfields Limited (NCL) accounted for more than a third of CIL's entire OBR registering a growth of 36.7% in July’20. NCL excavated 31.73 M.CuM of OBR in the month. Coming back strongly, Mahanadi Coalfields Limited (MCL) doubled its OBR in the current year's July to 12.48 M.CuM clocking a growth of 103% against 6.14 M.CuM in last July. Bharat Coking Coal Limited and South Eastern Coalfields Limited also recorded growths of over 25% and 21% respectively in the removal of overburden.

CIL despatched 43.39 Million Tonnes (MTs) of coal in July 2020, the highest for a month so far in the ongoing fiscal. CIL's coal sales in July'20 compared to June'20 increased by 1.8 MTs registering 4.3% growth with industrial activity showing signs of revival. Despite Covid induced slowdown and a three-day strike in the first week of July CIL was able to ramp up its supplies for the month. Supplies to non-power sector at 11.09 MTs in July’20 grew by close to 21% compared to 9.18 MTs in July’19.

"Our production and off-take were weighed down by the Covid led siege since the beginning of FY'21. But for the first time in this fiscal the downward growth in a month fell below double digit in both the facets, in July’20”, said a senior executive of the company. "We expect our production to go up post monsoon especially with the positive growth trend in the over burden removal (OBR)", the executive added.

CIL produced 37.36 MTs of coal in July 2020 down by 3% compared to July of last year. But, importantly, the slump in growth constricted sharply compared to June 20 when it was 12.8%. Coal production picked up in the last week of July’20 registering a growth of 15.7% compared to corresponding period year ago. Falling trend in coal sales also has been narrowing down gradually from 26% in April 20 to 7% in July. Among CIL's subsidiaries MCL Limited posted a robust 16.6% production growth at 10.17 MTs and an off-take growth of 9% at 11.53 MTs during the referred month.

Coal India Limited’s (CIL) concentrated efforts on supply of improved quality coal over committed grades and supply beyond annual contracted quantity (ACQ) have paid off as the company on whole gained a tidy amount over these twin attributes.

An amount of around Rs. 1,365 Crores provisioned under coal quality variance in the earlier years has been withdrawn, in the last fiscal, which is the net gain to CIL on whole.

CIL’s coal supplies, above agreed ACQ to its customers, having fuel supply agreement (FSA), also netted the company a substantial amount of over Rs. 1,760 Crores under performance incentive during the previous two fiscals combined. For 2019-20 the performance incentive earned was Rs. 875 Crores, whereas the same was Rs. 888 Crores during 2018-19.

Eastern Coalfields Limited and Northern Coalfields Limited bagging Rs.408 Crores and Rs.358 Crores respectively were major contributors towards the performance incentive for 2019-20. These two CIL’s subsidiaries together accounted for around 88% of the company’s total incentive gain. Similarly, for 2018-19 these two companies stood out for 83% of CIL’s overall performance incentive.

About the customers terminating supply contracts (FSAs) citing poor quality, grade slippage and transportation costs a company official said “We feel these are lame excuses. The company takes a serious cognizance of its coal quality,” adding “transportation costs being high is a frivolous reason to pull out as the customers willingly obtain linkage for road mode with full knowledge of the distances”.

The customers have paid premium for securing coal through auctions in the past without complaints. Now, with Covid-19 induced slowdown when the demand for coal is low and the floor prices for coal are relatively lower some of the customers are moving away citing reasons that are not sound.

Coal India might consider stopping further fuel supply agreements for a period with such customers, who renege on committed agreements and decide to terminate their contracts on frivolous grounds.

For enhanced transparency on coal quality front, CIL has a well-established third party sampling system covering all its customers and it had appointed well reputed agencies like Central Institute of Mining and Fuel Research (CIMFR) as independent consultant to test coal quality for power sector and Quality Council of India (QCI) for non-power sector. Coal quality variance has come down to these efforts and prices are charged in line with the actual grades of coal supplied to consumers. Credit or debit notes are issued in case of variation in grade, if any and there is a redressal mechanism to settle these issues amicably.

There is no uncertainty of supplies as the purpose of linkage auction was to ascertain continuous and committed supply of coal during the agreement period in a transparent manner. “During the pandemic we stood by our customers offering them a slew of friendly measures, sops and concessions and continued supplies” said the stated official.

Coal India Limited (CIL) will soon equip its young talented executives with best managerial proficiency to respond to the changing needs of the company in future, by fully sponsoring the eligible executives to pursue executive management progamme in select Indian Institutes of Management (IIMs).

In a first CIL, has decided to sponsor its academically oriented and high performing eligible executives for a one-year post graduate executive management programme in the country’s premier management education centres - IIMs. After the company’s Board has recently given its nod to this scheme, it is in effect now.

“Coal India hires many multi-disciplinary technical professionals and the one year Executive MBA programme enables them to upgrade their management skills to respond to the changing needs of the company. It would also provide a stimulus for aspiring executives to further their academic pursuit” said a senior executive of the company adding “It would be a mutually beneficial move”. The initiative is aimed at creating future managers with an ideal blend of technical and managerial skills.

To begin with, 16 executives per year preferably two from each of the seven coal producing subsidiaries of CIL, one each from CMPDIL and CIL headquarters and other establishments would be sponsored for this EMP. However, the option of increasing the number exists if the eligible candidates exceed 16 in a particular year.

The scheme is meant for executives who are in the E-4 to E-6 grade levels of the company. Under the eligibility criteria the executives should have completed a minimum five years of service in CIL or its coal companies and should have minimum 10 years of service left for superannuation from the date of joining the course. They should have ‘Outstanding’ score in their performance in four of previous five years.

For the executive who secures the seat, the company will sponsor in full the cost of the study, hostel charges and continue to pay salary and perks as applicable including medical benefits. Duration of the course will be treated as on duty and the seniority and consideration for promotion would be protected.

“Honing the management skills of our executives assumes all the more importance especially in our efforts to brace up to the future competitive challenges” said the referred executive.

Coal India Limited (CIL), in a first, has introduced a new category of e-auction of coal in addition to its existing bouquet of four, named 'special spot e-auction scheme 2020 for import substitution' meant exclusively for coal importers. The coal procured under this e-auction scheme will be for use within the country for import substitution.

"This move is in a bid to attain the government's thrust on reducing coal import dependency of the country under Aatma Nirbharta plan" stated a senior official of the state owned Maharatna coal monolith, adding "it would also open a new avenue for our coal companies to step up their sales".

Any Indian buyer including traders who imported coal at any point of time in the ongoing fiscal and or any of the previous two financial years are eligible for participating in this new version of e-auction. The minimum bid quantity is pegged at 25,000 tons for a source in case of road mode transportation. For rail mode transportation it is twice the quantity at 50,000 tons which is equivalent to 12 rakes. One rake is equivalent to 59 rail wagons. Customers can bid for further incremental quantities of coal if they require and in rail mode it shall be in the multiples of 4,000 tonnes at the minimum and for road mode 1,000 tons.

During the current month, the company will unveil the e-auction calendar of the scheme, for August 2020 to March 2021 period. The service providers would be MSTC Limited and Mjunction Services Limited. The programme for the e-auction would be notified minimum seven days in advance on CIL and its subsidiary company website.

The successful bid quantity of a bidder during the months when the coal is scheduled for lifting would be divided in equal parts for determining monthly scheduled quantity (MSQ) of coal supplies. However, both the buyer and seller can recast the monthly schedule on mutual consent in advance.

The successful bidder will have to deposit the coal value of the quantity of coal to be lifted in a month, with the concerned coal company on a monthly basis in two equal instalments.

CIL redrawing its marketing strategy has taken up on a mission mode to substitute imported coal with its own to step up its supplies. In the process the company has identified domestic coal based power plants and non-power sector consumers largely made up of sponge iron, cement, CPPs, fertilizers, steel and others who are importing coal as potential customers. These segments of customers have imported around 150 MTs of coal during last fiscal.

The capital expenditure (capex) of Coal India Limited (CIL), at Rs. 844 Crores during the first Quarter of the ongoing fiscal breached the provisioned target of Rs. 720 Crores achieving 117% of the target utilization. Even amid Covid induced slowdown the current year’s Q1 capex spend was 4.2% higher compared to same quarter last fiscal. CIL spent Rs. 810 Crores on its capital expenses in April-June 2019 period. Though the procurement process of certain equipment was completed execution of was delayed due to Covid.

"Capex is a key scoring performance parameter in the Memorandum of Understanding that CIL signs every year with its administrative ministry – Ministry of Coal", said a senior executive of the Company.

The capex utilization of the state owned Mahartana mining monolith received a boost from three of its subsidiaries South Eastern Coalfields Limited (SECL), Northern Coalfields Limited (NCL) and Central Coalfields Limited (CCL) who between them accounted for 81% of the capital expenditure, ending June '20 Quarter. SECL topped the list with Rs.435 Crore actual spend followed by NCL with Rs.149 Crores and CCL, Rs.102 Crores.

Of the actual capex of Rs.844 Crores, Heavy Earth Moving Machinery (HEMM), other plants and machinery accounting for Rs. 393 Crores was the major capex component. This was followed by the spend on coal evacuation transportation infrastructure like first mile connectivity including coal handling plants, silos, crusher, railway sidings/corridors worth Rs.241 Crores. Mine development, exploration and prospecting amounted to Rs. 80 Crores and 66 Crores respectively. The balance was made up by the other heads.

Subsidiary wise combined capex plan and capital budget of CIL as whole for FY 2020-21 is pegged at Rs. 10,000 Crores. While the plant and machinery portion including procurement of HEMM comprises the major share with over Rs. 3,700 Crores for the year, the expenditure on land acquisition and rehabilitation & resettlement involves upwards of Rs. 1,900 Crores. These two heads make up around 57% of the overall capex of FY’21.

The balance 43% is made up by the expenditure on transportation of coal evacuation; mine development; wagon procurement; others including ERP, solar initiatives, R&D, vehicles; exploration; buildings and water supply and environment.

The MoU that CIL enters into with government, formulated on the guidelines laid down by Department of Public Enterprises, is a negotiated agreement and contract between Government and the Management of Central Public Sector Enterprise (CPSE) to evaluate the performance of the CPSE at the end of the year vis- a-vis the targets fixed in the beginning of the year.

Coal India Limited (CIL) produced a total of 1.72 Million Tonnes (MTs) of coal and supplied 1.60 MTs to its customers during the three-day strike from 2 to 4 July called by five central trade unions protesting the government's decision over commercial coal mining.

Over Burden Removal (OBR) and coal composite amounted to a total of 14.20 MTs during the referred strike period. OBR and coal composite means the volume of coal produced and topsoil excavated combined. OBR is an important performance parameter as it exposes the coal seam for future production at short notice.

Despite the strike the state owned Maharatna coal miner managed 44% of coal output, compared to the average of ten days immediately prior to the first day of the strike. CIL on an average per day was producing 1.3 MTs of coal during the ten-day phase. Similarly, coal despatch was 38% of the referred ten-day average as CIL's supplies were 1.40 MTs per day. OBR and coal composite scored a high of 58%, the average per day being 8.14 MTs.

CIL produced 0.57 MTS of coal on an average per day and despatched 0.53 MTs of the dry during three-day period. Whereas, the average per day of OBR and coal composite was 4.73 MTs.

“Though the operations were subdued to a certain degree, the performance of the company was better than what was anticipated during the strike period” said an executive of the company.

The attendance of the employees progressively increased from the first day of the strike over the three-day period, averaging close to 36%. This means, with a little over one-third of the attendance, the company could still produce 58% of OBR and coal composite combined.

OBR alone at 5.70 Million Cubic Metres during the referred strike days clocked 61% of the ten-day's average.

Coal India Limited’s (CIL) Off-take, production and Over Burden Removal continued on 2 July despite the strike by its workmen.

Amid the ongoing strike, CIL despatched 5.78 Lakh Tonnes (LTs) on 2 July. This is around 42% in regard to the normal off-take of 14 LTs/day, calculated as average of ten days immediately prior to stoppage of the operations. Similarly, coal production was 4.81 LTs, which is close to 38% in regard to normal of 13 LTs/day as per referred calculation. Over Burden Removal an important performance parametre was 58% of the normal at 18 Lakh Cubic metres on 2 July against the ten day average of 31 L.Cu.M prior to the day referred.

Average attendance was close to 34% on 2 July which is likely to improve further as some workmen have started resuming their duties. Importantly, no untoward incidents were reported in any of the CIL’s coal companies as the harmony prevailed with restraint from all quarters.

Mr. Pramod Agrawal, CIL CMD, on Thursday evening appealed to the striking workmen of CIL to resume their duties. In a statement to them, Mr. Agrawal said "Considering the Covid situation in the country and the international scenario, Coal India’s role assumes all the more importance and I earnestly appeal to you to resume your duties in the larger interest of the nation".

He urged them to desist from any further stoppage of work as some of them have already expressed their perceived cause of concern, over commercial mining, by staying away from the work on Thursday.

In his appeal to CIL's protesting miners, he stated, that the Minister of Coal and Secretary (Coal) while addressing their Charter of Demands have reassured them that there was no question of privatization of Coal India or demerger of CMPDIL from CIL. No coal block of CIL would be given away for commercial coal mining.

Mr. Agrawal added, there would be no adverse effect on present or future employment on this reason. He said the Centre has been increasing CIL’s coal resource base by allocation of blocks to strengthen its role in future.

To bring in improved efficiency in coal transport and computer aided loading, Coal India Limited (CIL) on a mission mode has identified 14 additional projects, under Phase II, for its ‘first mile connectivity' (FMC) initiative. Four coal companies of CIL together will infuse a tentative capital of over Rs. 3,400 Crores in these projects that have a total of 100.5 Million Tonnes/Year (MT/Y) capacity.

Under Phase I, the state owned Maharatna coal miner had earlier zeroed in on 35 projects, each having 4 MT/Y capacity and above, from six of its subsidiaries with a capital of Rs. 12,300 Crores. Their combined project capacity is 406 MT/Y. The 49 projects under both the phases will have a total of 506.5 MT/Y capacity.

FMC is the transportation of coal from pitheads to despatch points. This move aims to replace the existing road transport between the two points and switch over to a seamless mechanized coal transport through conveyor belts which is a covered system for movement of coal reducing the dust pollution. It will also have the added benefit of computer aided loading of railway wagons.

As a corollary, CIL will set up Coal Handling Plants (CHPs) with Silos having Rapid Loading Systems, which will have benefits like crushing, sizing of coal, quicker and better quality coal loading with the advantage of precise pre-weighed quantity of coal being loaded. CHP/Silo loading will be a big shot in the arm for CIL in furthering its quality supply of coal.

“This will be a tipping point in our coal transportation in the first mile. The multiple advantages include easing the load on road networks, saving on diesel costs, cleaner environment and stoppage of possible pilferage. Another advantage is quicker computer aided loading of wagons” said a senior executive of the company.

Of the 14 Phase II projects, Central Coalfields Limited (CCL) accounts for 5 with 62.5 MT/Y capacity. Mahanadi Coalfields Limited (MCL) with a solitary project has 20 MT/Y capacity. Eastern Coalfields Limited (ECL) 7 projects and South Eastern Coalfields Limited (SECL) 1 project have capacities of 14 MT/Y and 4 MT/Y respectively. Tenders for these different projects will be floated beginning August this year till next two years.

Since coal will be loaded directly into the wagons from Silos it eliminates manual loading through pay loaders which is generally prone to overloading or under loading of wagons. Susceptibility of extraneous material being loaded through pay loaders leading to quality issues is another concern.

“Improved computer aided loading time will bring down the wagon idling. Wagon cycle time will be reduced by a few hours increasing wagon availability. It is a win-win situation for the company, railways and the consumer" said the stated official.

CIL already transports 151 MT/Y of coal through mechanized system and loads through CHP/Silos from 19 projects. Now it would be enhanced to 557 MT/Y by 2023-24 through phase I projects. Phase II projects will start contributing once the formalities of finalization are over.

Of the 35 Phase I projects, 2 projects, one each in SECL and MCL with a combined capacity of 26 MT/Y are already operational since February and April of this year. 7 projects of 91 MT/Y are under construction of which four are expected to get completed in this financial year. While tenders have already been floated for 8 projects having 76 MT/Y capacity, tenders for the remaining 18 projects will be issued on a fast track mode before 30th September of the current year.

Brushing aside the anxiety about the future of Coal India Limited (CIL) as “undue worry as Coal India is sound and secure”, in the wake of opening up of coal sector for commercial operators, Mr. Pramod Agrawal, the Maharatna coal behemoth’s Chairman said “there is no proposal to give away any CIL block for commercial mining, so there is no cause for concern. The company has sufficient blocks with abundant resource capacity to continue as a commercially viable entity even in the competition era”.

CIL has 447 coal blocks, mostly explored, under its disposal. In addition to these, 16 more blocks were allocated to CIL – 10 under Coal Mines (Special Provision) Act and 6 under Mines and Minerals (Development and Regulation) Act - making CIL the largest holder of coal resource in the country. Combined capacity of these 463 blocks is close to 170 Billion Tonnes (BTs). Most of the lately allocated16 block have a minimum 10 Million Tonne (MTs)/annum production capacity. Their combined peak rated capacity is 264 Million Tonnes.

At the current rate of production and even after taking into account the projected growth in the ensuing years, CIL will be able to produce and fuel the expanding coal demand of the country to a considerable extent in the foreseeable future. CIL is targeted to produce and supply 1 BTs of coal by 2023-24 and take it further forward from there.

Having its own in-house consultancy arm, Central Mine Planning and Design Institute with over four decades of expertise is another huge advantage to CIL in a competitive scenario. With exploration, mine planning, design, infrastructure engineering, environmental management as strong points, it sorts out most of coal mining issues giving CIL an edge over other participants in the coal sector. Also, CIL has a talented pool of multi-disciplinary professionals.

“Domestic demand for coal is outstripping the indigenous production. The resultant gap is being met through coal imports at huge forex outgo. If commercial miners can step in to fill this gap, imports to some extent would be reduced” said an official of the company adding, “but their presence does not dent CIL’s status as the company is resilient and has the capability to expand”. The country had imported 247 MTs of coal during 2019-20 of which 52 MTs was coking coal and the rest 195 MTs was non-coking coal.

CIL is increasing internal efficiency in operations. Synergizing its efforts with concerned State and Central bodies is a more critical issue for the company to sort out many issues in stepping up its output and supplies.

Coal India Limited (CIL) is confident of retaining its flagship position as the country's leading coal producer, notwithstanding the opening up of the coal sector to private players for commercial mining.

Mr. Pramod Agrawal, Chairman, CIL said “Commercial coal mining is not going to adversely impact the production or profitability of the company. Key issues which will help improve to stay ahead of the competition include uniform quality of coal, cost efficiency in production and reliable timely delivery schedule. Introduction of higher degree of mechanized mining and increased supplies are other focus points.”

Allaying the apprehension that the entry of private entrepreneurs in commercial coal mining operations may shrink Coal India’s role, a company executive said "commercial mining complements our efforts in shoring up the country's indigenous coal output, but may not be viewed as competition to Coal India. It would not unsettle us”.

CIL under its fold holds close to 54% of the country's entire coal resource base of 319 Billion Tonnes (BTs). The allocation of 16 blocks, few months back, by the Government to the state owned Maharatna PSU, saw its resource capacity swell by around 9 Billion Tonnes (BTs) to 172 BTs. Of these, WCL an BCCL account for 5 blocks each. ECL has 3 blocks whereas 2 belong to CCL and 1 to MCL. None of the 41 blocks put up for commercial mining auction belong to Coal India.

Irrespective of impending competition CIL, over the years, has been working on tightening its belt in becoming a cost efficient producer in lowering the cost per tonne of coal produced and focusing on improved quality of coal supply. These two factors will determine the sale of coal in the competitive environment.

CIL's advantage of over four and half decades of core competence, skilled human resource, established infrastructure, streamlined operations, infusion of capital in upgrading the technology and evacuation logistics, robust coal resource base and a slew of consumer friendly measures will give it an edge.

Coal India Limited (CIL) in a major move to increase its coal output and reduce import dependency of coal in the ensuing years has devised a transformative plan to engage Mine Developer cum Operators (MDO)s in its mines.

The Maharatna coal mining behemoth in the process has identified a total of 15 greenfield projects, as on date, to operate through MDO model of which 12 are open cast and 3 underground. Combined, they have a total targeted capacity of around 168 Million Tonnes/Year (MTY). While the OC projects have a targeted capacity of 162 MTY, UG projects add up to the rest close to 6 MTY. The contract period would be for 25 years or life of mine whichever is less.

CIL will engage MDOs of international repute, having state-of-the-art-technology through open global tenders, who shall excavate, extract and deliver coal to the coal companies of CIL as per the approved mining plan. CIL’s Board recently has given its nod in regard to standard bid document and request for bids for the engagement of MDOs.

CIL is laying out plans to complete the formalities by 2021-22 so that all projects become operational and start yielding the output to contribute in 1 BT by 2023-24.

Upcoming identified projects of Mahanadi Coalfields Limited, South Eastern Coalfields and Central Coalfields Limited will form major segments for the MDO mode with targeted capacities of 65.5 MTY, 52.4 MTY and 45 MTY respectively. Eastern Coalfields Limited and Northern Coalfields Limited between them will have projects with targeted capacities of 3 MTY and 2 MTY respectively.

Notice Inviting Tender (NIT) for 2 Projects, Siarmal OC of MCL (40 MTY) and Kotre-Basantpur Pachmo of CCL (5 MTY) together having a targeted capacity of 45 MTY has been floated in 2019-20. While NIT for 5 Projects for a targeted capacity of 68 MTY will be floated in the ongoing fiscal, for the balance 8 projects NIT will be floated in the fiscal, 2021-22.

Engagement of reputed MDOs would have multiple advantage of technology infusion, operational efficiency in the system apart from increased production. MDOs will facilitate R&R issues, land acquisitions, green clearances and coordination with State and Central Pollution Boards. Since contracts to them are on long-term basis allied infrastructure also would be developed.

Coal India Limited (CIL), for purchase of 96 Dumpers of 240 Ton capacity, has issued a letter of award of Rs.2,900 Crores to Belaz, the Belarus based mining equipment manufacturer. CIL is endeavouring to ramp up its production and productivity and modernizing its equipment is a step in that direction. The Maharatna Company’s Board has given its nod to close the deal.

The amount for the purchase of the Dumpers would be met out of the company’s own finances. Dumpers are primarily used in opencast mines and aid in the transport of bulk materials like over burden, which is an important performance criterion.

The purchase package includes the cost of the Dumpers and spares for eight years including the one year warranty period. Belaz bagged the contract through a global tender process.

The first batch of 6 Dumpers would start rolling in within eight months of signing of the contract. Thereafter, on CIL’s green signal of their performance the remaining quantity would be delivered in batches of 4 every month.

“This move is in line with improving our production and productivity in opencast mines” stated a senior company executive.

The latest addition of these 96 Dumpers to CIL’s heavy earth moving machinery fleet would be deployed in South Eastern Coalfields Limited (SECL) taking the total tally of its 240 Ton Dumpers to 162, with 66 previously in operation. 240 Ton Dumpers are of the highest capacity in the country presently and in CIL they are deployed only in SECL.

84 of the 96 dumpers would be put into operation in the Gevra project and the remaining 12 in Kusmunda. Both are mega opencast projects of SECL. Once deployed, Gevra's count of 240 Ton Dumpers would swell to 116, with 32 already existing. The number would go up to 32 in Kusmunda with 20 currently operational.

Laying emphasis on modernization and replacement of its aging equipment, CIL has earlier procured 77 Dumpers of 150 Ton Capacity from Belaz for Gevra project. To be operationalized in five OC projects of Northern Coalfields Limited (NCL), in a first, CIL has ordered 190 Ton capacity Dumpers numbering 102 from Caterpillar. While NCL projects account for 84 of these 102, the rest 18 are deployed in Rajmahal project of Eastern Coalfields Limited.

SECL, is the largest coal producing subsidiary of CIL which contributed to 25% of CIL’s total coal output of 602 Million Tonnes in 2019-20. Close to 61% of SECL’s total coal production is derived through opencast mines where the Dumpers play a productive role. Incidentally, SECL also contributed to 47% of CIL’s total UG production during 2019-20.

Coal India Limited (CIL) has sought the consideration of Railways for extending a benefit of 15% freight concession, for transportation of domestic coal booked by its customers under import substitution scheme, located in the distances of 701 to 1400 Kms from its mines. The move is aimed at broadening the customer base to bring in more consumers under import substitution plans. The request is in line with the benefit given to Iron ore.

This step by CIL comes in the wake of a recent Railway Board decision which granted a 20% distance based concession in rail freight price for transportation of coal and coke, among other commodities, for distances in excess of 1400 Kilometers (Kms). The concession is on normal tariff rate (NTR). However, after applying the concession, freight price should not be less than the NTR for distance upto 1400 Kms. Effective from 1 July of the ongoing year the freight price concession would be valid till 30 June 2021.

“Extension of freight concession also to customers located in 701 to 1400 Kms could result in substantial domestic coal lifted by them in place of coal sourced from abroad due to lesser cost in coal conveyance,” said a senior executive of the company. CIL’s coal would then be competitive with the landed price of imported coal and customers may opt for domestic coal.

Out of 126 coal based thermal plants linked with CIL, 14 thermal power plants located over 1400 Km distance are eligible for the freight concession presently. This prompted CIL to approach the Railways to seek freight concession in distances 701 to 1400 Kms as well to bring more customers under the ambit of the scheme. If this happens it would be a shot-in-the-arm for CIL in its efforts to substitute imported coal with its own produce.

Close to 70% of CIL’s overall supply consists of G9 to G13 grades of coal for which the freight price is around 40% to 45% of the total landed cost at consumption point. With the increased distance above 701 Kms the freight cost climbs up further. If concession in freight price is offered to customers falling in this range, it would be beneficial to coal producers to step up domestic supplies substituting imported quantities.

The14 plants located over 1400 Km distance, eligible for 20% freight price concession, have supply contracts of 42 MTs per annum with CIL. In the event of these plants opting to lift the entire linked quantity from coal companies, the total estimated financial benefit would be around Rs. 880 Crores per year. It would range from Rs. 1 Crore at the lower end to Rs. 380 Crores at the highest. 6 non-power consumers account for 1.37 MTs of annual supply quantity with an estimated financial impact of Rs. 12 Crores on account of freight concession.

The price of CIL’s coal is considerably low compared to imported coal. But statutory levies and rail freight makes the landed cost of its coal less competitive compared to imported coal, particularly in the western and southern parts of India.

Coal India Limited (CIL) clocked 17% growth in composite opencast production for July 2020 compared to same month a year ago. This is sum total of Over Burden Removal (OBR) and the amount of coal produced through OC means. The composite production was 110.40 Million Cubic Metres (M.CuM) for July 2020 against 94.4 M.CuM in July 2019.

"For CIL which relies on opencast mines for 95% of its entire annual coal output, OBR is a crucial performance indicator which exposes the coal seam for future production at short notice" said a senior executive of the company.

CIL's OBR alone in July 2020 surged ahead by 23.1% growth compared to July’19 and progressive July’20 OBR growth jumped by 12.4%. CIL has excavated 88.46 M.CuM of overburden in the current year's July against 71.85 M.CuM in July 2019.

In volume terms Northern Coalfields Limited (NCL) accounted for more than a third of CIL's entire OBR registering a growth of 36.7% in July’20. NCL excavated 31.73 M.CuM of OBR in the month. Coming back strongly, Mahanadi Coalfields Limited (MCL) doubled its OBR in the current year's July to 12.48 M.CuM clocking a growth of 103% against 6.14 M.CuM in last July. Bharat Coking Coal Limited and South Eastern Coalfields Limited also recorded growths of over 25% and 21% respectively in the removal of overburden.

CIL despatched 43.39 Million Tonnes (MTs) of coal in July 2020, the highest for a month so far in the ongoing fiscal. CIL's coal sales in July'20 compared to June'20 increased by 1.8 MTs registering 4.3% growth with industrial activity showing signs of revival. Despite Covid induced slowdown and a three-day strike in the first week of July CIL was able to ramp up its supplies for the month. Supplies to non-power sector at 11.09 MTs in July’20 grew by close to 21% compared to 9.18 MTs in July’19.

"Our production and off-take were weighed down by the Covid led siege since the beginning of FY'21. But for the first time in this fiscal the downward growth in a month fell below double digit in both the facets, in July’20”, said a senior executive of the company. "We expect our production to go up post monsoon especially with the positive growth trend in the over burden removal (OBR)", the executive added.

CIL produced 37.36 MTs of coal in July 2020 down by 3% compared to July of last year. But, importantly, the slump in growth constricted sharply compared to June 20 when it was 12.8%. Coal production picked up in the last week of July’20 registering a growth of 15.7% compared to corresponding period year ago. Falling trend in coal sales also has been narrowing down gradually from 26% in April 20 to 7% in July. Among CIL's subsidiaries MCL Limited posted a robust 16.6% production growth at 10.17 MTs and an off-take growth of 9% at 11.53 MTs during the referred month.

Coal India Limited’s (CIL) concentrated efforts on supply of improved quality coal over committed grades and supply beyond annual contracted quantity (ACQ) have paid off as the company on whole gained a tidy amount over these twin attributes.

An amount of around Rs. 1,365 Crores provisioned under coal quality variance in the earlier years has been withdrawn, in the last fiscal, which is the net gain to CIL on whole.

CIL’s coal supplies, above agreed ACQ to its customers, having fuel supply agreement (FSA), also netted the company a substantial amount of over Rs. 1,760 Crores under performance incentive during the previous two fiscals combined. For 2019-20 the performance incentive earned was Rs. 875 Crores, whereas the same was Rs. 888 Crores during 2018-19.

Eastern Coalfields Limited and Northern Coalfields Limited bagging Rs.408 Crores and Rs.358 Crores respectively were major contributors towards the performance incentive for 2019-20. These two CIL’s subsidiaries together accounted for around 88% of the company’s total incentive gain. Similarly, for 2018-19 these two companies stood out for 83% of CIL’s overall performance incentive.

About the customers terminating supply contracts (FSAs) citing poor quality, grade slippage and transportation costs a company official said “We feel these are lame excuses. The company takes a serious cognizance of its coal quality,” adding “transportation costs being high is a frivolous reason to pull out as the customers willingly obtain linkage for road mode with full knowledge of the distances”.

The customers have paid premium for securing coal through auctions in the past without complaints. Now, with Covid-19 induced slowdown when the demand for coal is low and the floor prices for coal are relatively lower some of the customers are moving away citing reasons that are not sound.

Coal India might consider stopping further fuel supply agreements for a period with such customers, who renege on committed agreements and decide to terminate their contracts on frivolous grounds.

For enhanced transparency on coal quality front, CIL has a well-established third party sampling system covering all its customers and it had appointed well reputed agencies like Central Institute of Mining and Fuel Research (CIMFR) as independent consultant to test coal quality for power sector and Quality Council of India (QCI) for non-power sector. Coal quality variance has come down to these efforts and prices are charged in line with the actual grades of coal supplied to consumers. Credit or debit notes are issued in case of variation in grade, if any and there is a redressal mechanism to settle these issues amicably.

There is no uncertainty of supplies as the purpose of linkage auction was to ascertain continuous and committed supply of coal during the agreement period in a transparent manner. “During the pandemic we stood by our customers offering them a slew of friendly measures, sops and concessions and continued supplies” said the stated official.

Coal India Limited (CIL) will soon equip its young talented executives with best managerial proficiency to respond to the changing needs of the company in future, by fully sponsoring the eligible executives to pursue executive management progamme in select Indian Institutes of Management (IIMs).

In a first CIL, has decided to sponsor its academically oriented and high performing eligible executives for a one-year post graduate executive management programme in the country’s premier management education centres - IIMs. After the company’s Board has recently given its nod to this scheme, it is in effect now.

“Coal India hires many multi-disciplinary technical professionals and the one year Executive MBA programme enables them to upgrade their management skills to respond to the changing needs of the company. It would also provide a stimulus for aspiring executives to further their academic pursuit” said a senior executive of the company adding “It would be a mutually beneficial move”. The initiative is aimed at creating future managers with an ideal blend of technical and managerial skills.

To begin with, 16 executives per year preferably two from each of the seven coal producing subsidiaries of CIL, one each from CMPDIL and CIL headquarters and other establishments would be sponsored for this EMP. However, the option of increasing the number exists if the eligible candidates exceed 16 in a particular year.

The scheme is meant for executives who are in the E-4 to E-6 grade levels of the company. Under the eligibility criteria the executives should have completed a minimum five years of service in CIL or its coal companies and should have minimum 10 years of service left for superannuation from the date of joining the course. They should have ‘Outstanding’ score in their performance in four of previous five years.

For the executive who secures the seat, the company will sponsor in full the cost of the study, hostel charges and continue to pay salary and perks as applicable including medical benefits. Duration of the course will be treated as on duty and the seniority and consideration for promotion would be protected.

“Honing the management skills of our executives assumes all the more importance especially in our efforts to brace up to the future competitive challenges” said the referred executive.

Coal India Limited (CIL), in a first, has introduced a new category of e-auction of coal in addition to its existing bouquet of four, named 'special spot e-auction scheme 2020 for import substitution' meant exclusively for coal importers. The coal procured under this e-auction scheme will be for use within the country for import substitution.

"This move is in a bid to attain the government's thrust on reducing coal import dependency of the country under Aatma Nirbharta plan" stated a senior official of the state owned Maharatna coal monolith, adding "it would also open a new avenue for our coal companies to step up their sales".

Any Indian buyer including traders who imported coal at any point of time in the ongoing fiscal and or any of the previous two financial years are eligible for participating in this new version of e-auction. The minimum bid quantity is pegged at 25,000 tons for a source in case of road mode transportation. For rail mode transportation it is twice the quantity at 50,000 tons which is equivalent to 12 rakes. One rake is equivalent to 59 rail wagons. Customers can bid for further incremental quantities of coal if they require and in rail mode it shall be in the multiples of 4,000 tonnes at the minimum and for road mode 1,000 tons.

During the current month, the company will unveil the e-auction calendar of the scheme, for August 2020 to March 2021 period. The service providers would be MSTC Limited and Mjunction Services Limited. The programme for the e-auction would be notified minimum seven days in advance on CIL and its subsidiary company website.

The successful bid quantity of a bidder during the months when the coal is scheduled for lifting would be divided in equal parts for determining monthly scheduled quantity (MSQ) of coal supplies. However, both the buyer and seller can recast the monthly schedule on mutual consent in advance.

The successful bidder will have to deposit the coal value of the quantity of coal to be lifted in a month, with the concerned coal company on a monthly basis in two equal instalments.

CIL redrawing its marketing strategy has taken up on a mission mode to substitute imported coal with its own to step up its supplies. In the process the company has identified domestic coal based power plants and non-power sector consumers largely made up of sponge iron, cement, CPPs, fertilizers, steel and others who are importing coal as potential customers. These segments of customers have imported around 150 MTs of coal during last fiscal.

The capital expenditure (capex) of Coal India Limited (CIL), at Rs. 844 Crores during the first Quarter of the ongoing fiscal breached the provisioned target of Rs. 720 Crores achieving 117% of the target utilization. Even amid Covid induced slowdown the current year’s Q1 capex spend was 4.2% higher compared to same quarter last fiscal. CIL spent Rs. 810 Crores on its capital expenses in April-June 2019 period. Though the procurement process of certain equipment was completed execution of was delayed due to Covid.

"Capex is a key scoring performance parameter in the Memorandum of Understanding that CIL signs every year with its administrative ministry – Ministry of Coal", said a senior executive of the Company.

The capex utilization of the state owned Mahartana mining monolith received a boost from three of its subsidiaries South Eastern Coalfields Limited (SECL), Northern Coalfields Limited (NCL) and Central Coalfields Limited (CCL) who between them accounted for 81% of the capital expenditure, ending June '20 Quarter. SECL topped the list with Rs.435 Crore actual spend followed by NCL with Rs.149 Crores and CCL, Rs.102 Crores.

Of the actual capex of Rs.844 Crores, Heavy Earth Moving Machinery (HEMM), other plants and machinery accounting for Rs. 393 Crores was the major capex component. This was followed by the spend on coal evacuation transportation infrastructure like first mile connectivity including coal handling plants, silos, crusher, railway sidings/corridors worth Rs.241 Crores. Mine development, exploration and prospecting amounted to Rs. 80 Crores and 66 Crores respectively. The balance was made up by the other heads.

Subsidiary wise combined capex plan and capital budget of CIL as whole for FY 2020-21 is pegged at Rs. 10,000 Crores. While the plant and machinery portion including procurement of HEMM comprises the major share with over Rs. 3,700 Crores for the year, the expenditure on land acquisition and rehabilitation & resettlement involves upwards of Rs. 1,900 Crores. These two heads make up around 57% of the overall capex of FY’21.

The balance 43% is made up by the expenditure on transportation of coal evacuation; mine development; wagon procurement; others including ERP, solar initiatives, R&D, vehicles; exploration; buildings and water supply and environment.

The MoU that CIL enters into with government, formulated on the guidelines laid down by Department of Public Enterprises, is a negotiated agreement and contract between Government and the Management of Central Public Sector Enterprise (CPSE) to evaluate the performance of the CPSE at the end of the year vis- a-vis the targets fixed in the beginning of the year.

Coal India Limited (CIL) produced a total of 1.72 Million Tonnes (MTs) of coal and supplied 1.60 MTs to its customers during the three-day strike from 2 to 4 July called by five central trade unions protesting the government's decision over commercial coal mining.

Over Burden Removal (OBR) and coal composite amounted to a total of 14.20 MTs during the referred strike period. OBR and coal composite means the volume of coal produced and topsoil excavated combined. OBR is an important performance parameter as it exposes the coal seam for future production at short notice.

Despite the strike the state owned Maharatna coal miner managed 44% of coal output, compared to the average of ten days immediately prior to the first day of the strike. CIL on an average per day was producing 1.3 MTs of coal during the ten-day phase. Similarly, coal despatch was 38% of the referred ten-day average as CIL's supplies were 1.40 MTs per day. OBR and coal composite scored a high of 58%, the average per day being 8.14 MTs.

CIL produced 0.57 MTS of coal on an average per day and despatched 0.53 MTs of the dry during three-day period. Whereas, the average per day of OBR and coal composite was 4.73 MTs.

“Though the operations were subdued to a certain degree, the performance of the company was better than what was anticipated during the strike period” said an executive of the company.

The attendance of the employees progressively increased from the first day of the strike over the three-day period, averaging close to 36%. This means, with a little over one-third of the attendance, the company could still produce 58% of OBR and coal composite combined.

OBR alone at 5.70 Million Cubic Metres during the referred strike days clocked 61% of the ten-day's average.

Coal India Limited’s (CIL) Off-take, production and Over Burden Removal continued on 2 July despite the strike by its workmen.

Amid the ongoing strike, CIL despatched 5.78 Lakh Tonnes (LTs) on 2 July. This is around 42% in regard to the normal off-take of 14 LTs/day, calculated as average of ten days immediately prior to stoppage of the operations. Similarly, coal production was 4.81 LTs, which is close to 38% in regard to normal of 13 LTs/day as per referred calculation. Over Burden Removal an important performance parametre was 58% of the normal at 18 Lakh Cubic metres on 2 July against the ten day average of 31 L.Cu.M prior to the day referred.

Average attendance was close to 34% on 2 July which is likely to improve further as some workmen have started resuming their duties. Importantly, no untoward incidents were reported in any of the CIL’s coal companies as the harmony prevailed with restraint from all quarters.

Mr. Pramod Agrawal, CIL CMD, on Thursday evening appealed to the striking workmen of CIL to resume their duties. In a statement to them, Mr. Agrawal said "Considering the Covid situation in the country and the international scenario, Coal India’s role assumes all the more importance and I earnestly appeal to you to resume your duties in the larger interest of the nation".

He urged them to desist from any further stoppage of work as some of them have already expressed their perceived cause of concern, over commercial mining, by staying away from the work on Thursday.

In his appeal to CIL's protesting miners, he stated, that the Minister of Coal and Secretary (Coal) while addressing their Charter of Demands have reassured them that there was no question of privatization of Coal India or demerger of CMPDIL from CIL. No coal block of CIL would be given away for commercial coal mining.

Mr. Agrawal added, there would be no adverse effect on present or future employment on this reason. He said the Centre has been increasing CIL’s coal resource base by allocation of blocks to strengthen its role in future.

To bring in improved efficiency in coal transport and computer aided loading, Coal India Limited (CIL) on a mission mode has identified 14 additional projects, under Phase II, for its ‘first mile connectivity' (FMC) initiative. Four coal companies of CIL together will infuse a tentative capital of over Rs. 3,400 Crores in these projects that have a total of 100.5 Million Tonnes/Year (MT/Y) capacity.

Under Phase I, the state owned Maharatna coal miner had earlier zeroed in on 35 projects, each having 4 MT/Y capacity and above, from six of its subsidiaries with a capital of Rs. 12,300 Crores. Their combined project capacity is 406 MT/Y. The 49 projects under both the phases will have a total of 506.5 MT/Y capacity.

FMC is the transportation of coal from pitheads to despatch points. This move aims to replace the existing road transport between the two points and switch over to a seamless mechanized coal transport through conveyor belts which is a covered system for movement of coal reducing the dust pollution. It will also have the added benefit of computer aided loading of railway wagons.

As a corollary, CIL will set up Coal Handling Plants (CHPs) with Silos having Rapid Loading Systems, which will have benefits like crushing, sizing of coal, quicker and better quality coal loading with the advantage of precise pre-weighed quantity of coal being loaded. CHP/Silo loading will be a big shot in the arm for CIL in furthering its quality supply of coal.

“This will be a tipping point in our coal transportation in the first mile. The multiple advantages include easing the load on road networks, saving on diesel costs, cleaner environment and stoppage of possible pilferage. Another advantage is quicker computer aided loading of wagons” said a senior executive of the company.

Brushing aside the anxiety about the future of Coal India Limited (CIL) as “undue worry as Coal India is sound and secure”, in the wake of opening up of coal sector for commercial operators, Mr. Pramod Agrawal, the Maharatna coal behemoth’s Chairman said “there is no proposal to give away any CIL block for commercial mining, so there is no cause for concern. The company has sufficient blocks with abundant resource capacity to continue as a commercially viable entity even in the competition era”.

CIL has 447 coal blocks, mostly explored, under its disposal. In addition to these, 16 more blocks were allocated to CIL – 10 under Coal Mines (Special Provision) Act and 6 under Mines and Minerals (Development and Regulation) Act - making CIL the largest holder of coal resource in the country. Combined capacity of these 463 blocks is close to 170 Billion Tonnes (BTs). Most of the lately allocated16 block have a minimum 10 Million Tonne (MTs)/annum production capacity. Their combined peak rated capacity is 264 Million Tonnes.

At the current rate of production and even after taking into account the projected growth in the ensuing years, CIL will be able to produce and fuel the expanding coal demand of the country to a considerable extent in the foreseeable future. CIL is targeted to produce and supply 1 BTs of coal by 2023-24 and take it further forward from there.

Having its own in-house consultancy arm, Central Mine Planning and Design Institute with over four decades of expertise is another huge advantage to CIL in a competitive scenario. With exploration, mine planning, design, infrastructure engineering, environmental management as strong points, it sorts out most of coal mining issues giving CIL an edge over other participants in the coal sector. Also, CIL has a talented pool of multi-disciplinary professionals.

“Domestic demand for coal is outstripping the indigenous production. The resultant gap is being met through coal imports at huge forex outgo. If commercial miners can step in to fill this gap, imports to some extent would be reduced” said an official of the company adding, “but their presence does not dent CIL’s status as the company is resilient and has the capability to expand”. The country had imported 247 MTs of coal during 2019-20 of which 52 MTs was coking coal and the rest 195 MTs was non-coking coal.

CIL is increasing internal efficiency in operations. Synergizing its efforts with concerned State and Central bodies is a more critical issue for the company to sort out many issues in stepping up its

Coal India Limited (CIL) is confident of retaining its flagship position as the country's leading coal producer, notwithstanding the opening up of the coal sector to private players for commercial mining.

Mr. Pramod Agrawal, Chairman, CIL said “Commercial coal mining is not going to adversely impact the production or profitability of the company. Key issues which will help improve to stay ahead of the competition include uniform quality of coal, cost efficiency in production and reliable timely delivery schedule. Introduction of higher degree of mechanized mining and increased supplies are other focus points.”

Allaying the apprehension that the entry of private entrepreneurs in commercial coal mining operations may shrink Coal India’s role, a company executive said "commercial mining complements our efforts in shoring up the country's indigenous coal output, but may not be viewed as competition to Coal India. It would not unsettle us”.

CIL under its fold holds close to 54% of the country's entire coal resource base of 319 Billion Tonnes (BTs). The allocation of 16 blocks, few months back, by the Government to the state owned Maharatna PSU, saw its resource capacity swell by around 9 Billion Tonnes (BTs) to 172 BTs. Of these, WCL an BCCL account for 5 blocks each. ECL has 3 blocks whereas 2 belong to CCL and 1 to MCL. None of the 41 blocks put up for commercial mining auction belong to Coal India.

Irrespective of impending competition CIL, over the years, has been working on tightening its belt in becoming a cost efficient producer in lowering the cost per tonne of coal produced and focusing on improved quality of coal supply. These two factors will determine the sale of coal in the competitive environment.

Coal India Limited (CIL) in a major move to increase its coal output and reduce import dependency of coal in the ensuing years has devised a transformative plan to engage Mine Developer cum Operators (MDO)s in its mines.

The Maharatna coal mining behemoth in the process has identified a total of 15 greenfield projects, as on date, to operate through MDO model of which 12 are open cast and 3 underground. Combined, they have a total targeted capacity of around 168 Million Tonnes/Year (MTY). While the OC projects have a targeted capacity of 162 MTY, UG projects add up to the rest close to 6 MTY. The contract period would be for 25 years or life of mine whichever is less.

CIL will engage MDOs of international repute, having state-of-the-art-technology through open global tenders, who shall excavate, extract and deliver coal to the coal companies of CIL as per the approved mining plan. CIL’s Board recently has given its nod in regard to standard bid document and request for bids for the engagement of MDOs.

CIL is laying out plans to complete the formalities by 2021-22 so that all projects become operational and start yielding the output to contribute in 1 BT by 2023-24.

Upcoming identified projects of Mahanadi Coalfields Limited, South Eastern Coalfields and Central Coalfields Limited will form major segments for the MDO mode with targeted capacities of 65.5 MTY, 52.4 MTY and 45 MTY respectively. Eastern Coalfields Limited and Northern Coalfields Limited between them will have projects with targeted capacities of 3 MTY and 2 MTY respectively.

Notice Inviting Tender (NIT) for 2 Projects, Siarmal OC of MCL (40 MTY) and Kotre-Basantpur Pachmo of CCL (5 MTY) together having a targeted capacity of 45 MTY has been floated in 2019-20. While NIT for 5 Projects for a targeted capacity of 68 MTY will be floated in the ongoing fiscal, for the balance 8 projects NIT will be floated in the fiscal, 2021-22.

Engagement of reputed MDOs would have multiple advantage of technology infusion, operational efficiency in the system apart from increased production. MDOs will facilitate R&R issues, land acquisitions, green clearances and coordination with State and Central Pollution Boards. Since contracts to them are on long-term basis allied infrastructure also would be developed.

Amid mounting concern over fall in coal despatches, due to Covid-19 led demand slump, Coal India Limited (CIL) has flagged for government’s consideration the case for lower or discounted railway tariff for transportation of quantities of domestic coal booked by consumers which will facilitate import substitution.

CIL is primarily tapping domestic coal based power plants and non-power sector consumers who are importing coal. Between them they imported around 150 MTs in 2019-20. CIL is planning to substitute their supplies with domestic coal which would help the coal major step up its coal sales.

The move would result in curtailing forex outgo arising out of coal imports and help CIL expand its supply volumes.

CIL continues to be beset with tepid demand for coal with most of the customers shying away from lifting adequate quantities. Power Sector which makes up close to 80% of CIL’s total supplies, is brimming over with nearly 50 Million Tonnes (MTs) of coal sufficient for 29 days of consumption ending May’20. Already many plants have started restricting supplies from CIL further shrinking the despatches of coal companies.

For the month of May’20 Power Sector at 30.15 MTs, lifted only around 75% of coal, from CIL sources, compared to what it did same month a year ago, resulting in a 10.23 MTs slide in supplies. During May’19 Power Utilities lifted 40.38 MTs of coal.

“The company can work on supply side improving facilities to our customers like reduction in reserve prices in auctions and liaising with Railways on their behalf. We can cater to the demand but cannot create it” said an official of the company, “as demand is based on many factors like logistics, freight movement, fluctuation in international prices affecting landed cost and most importantly the working capital liquidity of the consumers”.

To find avenues for expanding its supplies CIL is focusing on non-power sector consumers like Sponge iron, Cement, CPPs, fertilizes, steel persuading them to replace their imported coal with domestic coal. Dialogue is on with customers who opted for import substitution of coal in 2019-20. Until demand for dry fuel picks up from these sectors supplies may be on low key.

A portal has also been developed by CIL through which the consumers can register the details of their demand of domestic coal towards import substitution and secure allocation of coal.

Coal India Limited’s (CIL) production and off-take started showing signs of improvement in the ongoing fiscal registering modest growth of 2.6% and 2.3% respectively during May’20 on a month-on-month comparison, that is May’20 compared to the month of April’20. Growth in Over Burden Removal (OBR) during the referred period rose sharply by 10.4%.

CIL as whole produced 41.43 Million Tonnes (MTs) of coal in May’20 against 40.38 MTs in April’20, the increase in volume terms being 1.05 MTs, a growth of 2.6%.

Amid a crimped demand for coal, in what would be an encouraging sign for CIL, coal off-take was up at 39.95 MTs in May’20 compared to 39.06 MTs in April’20. Coal sales have expanded by 0.9 MTs in volume terms in May’20.

Growth in off-take to non-power sector was an impressive 37.3% during May’20 compared to month of April’20. CIL’s supplies to non-power consumers during May’20 was 9.76 MTs against 7.11 MTs in April’20 the increase in volume terms being a strong 2.65 MTs.

OBR growth for the month of May’20 was 21% at 124.59 M.Cu.M OB removal, compared to year ago month, as CIL laid aside an additional quantity of 21.52 M.Cu.M extraneous matter during the referred period. MCL and BCCL with growths of little over 55% and 29% respectively topped the list during the period.

This bodes well for the state owned coal mining behemoth as OBR is an important performance parameter that removes top soil and lays bare the coal seams for future mining in opencast mines.

“This is a positive sign and secures options for our future coal output at short notice, once demands picks up” said an official of the Company adding “all our coal producing subsidiaries have posted growth in OB removal during May’20 compared to same month last year”.

Mahanadi Coalfields Limited (MCL) the Odisha based coal producing subsidiary of Coal India Limited (CIL) reported a robust 42.6% growth in Over Burden Removal (OBR) during the current fiscal upto 25 May 2020 compared to same period year ago. This is highest among all the subsidiaries of CIL.

MCL has cleared 27.51 Million Cubic Metres (M.CuM) of top soil and extraneous matter till 25th May compared to 19.29 M.CuM year ago – a volume increase of 8.22 M.CuM resulting in 42.6% growth.

Over Burden Removal is an important performance parameter as it exposes the coal seam for future mining. It also lends mine stability. Ramping up coal production at short notice would not be a problem with coal ready for mining on the shelf. MCL would be able to pick up the production tempo once the demand for coal picks up.

Despite lukewarm demand for dry fuel from the consuming sectors, amid Covid-19 slowdown, MCL managed to produce 20.54 MTs of coal progressive up to 25 May’20 the highest quantity among all coal companies of CIL.

For the month, till 25 May, MCL’s OBR registered a strong growth of 53% at 12.95 M.CuM compared to 8.46 M.CuM same date last year. In the process, target achievement was 102%.

For MCL whose almost all the production yield is through opencast mining, OBR assumes even greater importance. During 2019-20 MCL produced 140.36 MTs of coal of which 139.52 MTs was through opencast means, that is, 99.4%.

MCL which contributes to a little over 23% of CIL’s overall production and off-take is the second largest coal producer and supplier among CIL’s subsidiaries. MCL is targeted to produce 173 Million Tonnes (MTs) during the current fiscal and going forward is targeted to contribute significantly to the tune of 263 MTs by 2023-24 in CIL’s quest of 1 Billion Tonnes coal production by then.

Northern Coalfields Limited (NCL), the Madhya Pradesh based, coal producing subsidiary of Coal India Limited (CIL) is holding on to its production even amid the Covid-19 slowdown. For April’20 NCL produced 8.73 Million Tonnes (MTs) of coal achieving 96% of the month’s targeted production. Importantly, there was no decline in growth compared to same month last year. Coal production was impeded in many companies.

NCL is third largest coal producing subsidiary of CIL which contributed to 18% of CIL’s overall coal output of 602.13 MTs during 2019-20. For two successive financial years on trot NCL has achieved its production target four days ahead of the closure of the fiscal. For FY 20 NCL’s production was 108.05 MTs – 102% of the target achievement.

For the period upto 15 May’20, NCL produced 4.32 MTs clocking 2.5% growth for the comparable period last year, being only CIL subsidiary to have registered growth. NCL is targeted to produce 113.25 MTs during the current fiscal entailing a growth of 4.8%.

“Generally, the production tempo for coal companies pick up in the second half of the fiscal and especially in the Q4. With growth trend under its belt NCL could sail past target this year as well” said a company official.

Advantage of NCL to push its production up is its steady growth in Over Burden Removal (OBR). NCL’s April ’20 OBR at 29.33 Million Cubic Metres grew by 6.8% compared to same month last year and OBR growth during first 15 days of May’20 was close to 16%. OBR, the process of removing the topsoil and stones is an important performance criterion as it improves the mine geometry and exposes coal seam for future mining. It also makes mines safer to operate.

Coal India Limited (CIL) on 24 April signed two purchase pacts totalling nearly Rs.400 Crores with BEML Limited, the country’s Heavy Earth Moving Machinery manufacturing PSU, for procurement of seven 150 Tonne Dumpers and eight 190 Tonne Dumpers. The contract cost for 150T Dumpers is around Rs.150 Crores and that of 190T Dumpers is Rs 250 Crores. Dumpers used in opencast coal mines play a critical role in hauling coal and the top soil.

The 150 T Dumpers would be deployed on trial basis in the Gevra opencast project of South Eastern Coalfields Limited, the Chattisgarh based subsidiary of CIL. Whereas, four each of 190 T Dumpers would be put to use on trial basis in Amlohri and Nigahi OC projects of Northern Coalfields Limited which operates out of Madhya Pradesh and partly Uttar Pradesh. The scope of the contracts covers supply of dumpers as well as spares and consumables for a period of eight years.

In a bid to promote ‘Make in India’ CIL has been pursuing developmental tenders to encourage indigenous manufacturers for their greater participation. From CIL’s point of view it would be beneficial to the company, in future, in widening alternative competitive sources for regular orders. CIL awarded the dual contracts to BEML Limited against global tenders issued by it. This move would also help the Indian HEMM manufacturer in their capacity and capability building. There are no other indigenous manufacturers for this category of high capacity dumpers.

It is win-win situation for both the companies and is also a big stride towards Make in India movement.

The pact was inked, in the presence of Mr. Binay Dayal, Director (Technical) CIL, by General Manager (MM) CIL and Regional Manager, BEML Limited Kolkata.

Coal India Limited (CIL), for FY 2020-21, has increased the minimum assured commitment level of coal supply, 'trigger level', to 80% from the existing 75% of Annual Contracted Quantity (ACQ) to its power sector consumers covered under Fuel Supply Agreements (FSA). This is applicable for those FSAs where trigger level was pegged at 75%. The company’s Board has green flagged the proposal in its recently held meeting.

Coal companies of CIL have been advised for immediate implementation of the increase. The amendment to elevate the trigger level to 80% in the provisions of existing FSA shall be through a side agreement. “Raising the trigger level to 80% is targeted towards Gencos requiring more coal” said an official of the company.

The aim is to encourage power plants to opt for increased domestic supply of coal and to steer them away from imports to the extent possible.

CIL's FSAs with power utilities stand around 560 Million Tonnes (MTs). Of this, 270 MTs of FSAs belong to power plants commissioned prior to New Coal Distribution Policy regime whose trigger level was 90% of the ACQ. And for those FSAs amounting to 290 MTs commissioned post NCDP the trigger level was 75% of the ACQ. Now, the post NCDP level is ramped up to 80% for 2020-21. Assuming all eligible power utilities agree for increase to 80% trigger level then FSAs for the ongoing fiscal could see a spike of over 14 MTs.

Abundant coal stock at an all time high of 75 MTs at pitheads, increased production planned for 2020-21, to assure more domestic coal to the power plants operating on higher level of plant load factor and to offer relief to the power sector during the Corona pandemic prompted the Maharatna coal mining monolith to increase the trigger level.

The coal companies shall be motivated to increase the level of delivery to the power plants as supplies less than the committed trigger level of 80% shall attract payment of penalty for the quantity supplied less. Similarly, power generators shall also be motivated to increase the lifting of domestic coal under the FSA.

Amid the economic crisis created by Covid-19, CIL has stepped up many consumer friendly relief measures which include extension of time limit for payment of coal till 21 April 2020; extension of the validity period for lifting of coal under all auctions without any penalty; continuance of coal supplies despite payment defaults by Sate and Central Gencos and implementation of Usance LC.

Coal India Limited (CIL) has further extended the time limit for payment of coal, booked by its customers, by two more weeks till 21 April 2020 from 7 April 2020 announced earlier. The move comes amid a slew of measures that the Maharatna coal major has introduced to lessen the burden of its customers in the ongoing lockdown phase.

"We are reaching out to our customers with the best friendly initiatives that we could in this difficult period" said a company official, adding "the aim is to ease the stress of our customers".

The long pending demand of Usance LC is now implemented as an additional mode of payment along with Irrevocable Revolving Letters of Credit (IRLC) for the coal supplied to power producers, especially independent power plants. This will help the cash strapped power producers avail credit facility through their banks to tackle liquidity crunch.

In addition, CIL has extended the validity period for lifting of coal under all auctions without any penalty. Earlier, failure to lift the ordered quantity of coal within a stipulated time period attracted forfeiture of earnest money deposit under auction schemes. Now, this clause has been done away with till the closure of lock down period to non regulated sector as well.

CIL continues to supply coal, despite payment defaults, to the power generating companies in the Central and State sectors in the midst of Covid-19 crisis. Ministry of Coal and CIL have taken sufficient measures to supply coal to generating units.

Coal stocks in the country now stand at 120 Million Tonnes (MTs) with pitheads of CIL heaped high close to 75 MTs. The rest 45 MTs of coal stock is at thermal power plants sufficient for 28 days consumption. There is no power plant in the country in critical or super critical situation for want of coal. CIL's coal companies are concentrating supplies to such power plants that are still holding stock for less than 10 days consumption to boost up stocks.

Power companies importing coal are being encouraged to substitute their requirement of imported coal with domestic coal of CIL by regular monthly allotments.

Coal India Limited (CIL) recorded an all time high of 84.36 Million Tonnes (MTs) coal output during March 2020 posting 6.5% growth compared to 79.19 MTs that it reported in March 2019. In producing 3.85 MTs on 30 March, CIL has set up a new record for the highest ever production in a day since inception.

The company closed the fiscal 2019-20 with an annual coal production of 602.14 MTs achieving 91% of the target.

Coming back strongly in the last quarter of FY 2020, CIL clocked a robust 9.9% production growth compared to same quarter 2018-19. The Maharatna coal mining behemoth produced 213.71 MTs of coal during January-March 2020, an increase of 19.26 MTs in volume terms compared to 194.45 MTs that the company reported for Q4 of FY 2019.

“After the company’s production was severely impeded on account of excess and prolonged monsoon during the first half of the fiscal, we could recover much of the lost ground in the second half” said an official of the company adding “CIL as whole produced 120.28 MTs more coal in H2 than it did in H1.”

Against 240.93 MT production during April-September 2019, CIL produced 361.21 MTs in the next six months from October 2019 to March 2020.

Two of the CIL’s subsidiaries Northern Coalfields Limited and Western Coalfields Limited surpassed their respective annual production targets of 2019-20, achieving 102% and 103% of their respective targets. While NCL produced 108.05 MTs for the fiscal, WCL’s output was 57.64 MTs. SECL with 1.08 MTs, CCL- 0.79 MTs, WCL -0.50 MTs, NCL -0.41 MTs and ECL -0.26 MTs have recorded their highest single day production during the year.

Importantly, not a single coal fired power plant in the country is in critical or super-critical condition for want of coal on 31 March 2020.

Thermal Power Plants of the country are flush with coal stocks with 44.68 MTs sufficient for 28 days. Many of the thermal plants have requested CIL to regulate coal supplies to them.

Besides ensuring steady supply to power sector, CIL liquidated around 91% of its 5143 arrear rakes to non-power sector consumers pertaining to years 2017-18 and 2018-19. 4660 backlog rakes have been cleared during the fiscal.

Coal India's pithead stock has risen to highest ever 74.56 MTs offering a comfortable buffer during the ensuing summer months. The combined coal stock of 119.24 MTs at power plants and at pitheads of CIL is highest ever dispelling any notions of coal shortage in the near future.

Coal production by Coal India Limited (CIL) recorded close to 3 MTs on Thursday, the second highest one day's production this fiscal, despite the constraints in the wake of corona virus pandemic. The company has been averaging 2.56 MTs production per day during the current month with supplies averaging 1.75 MTs.

"Coal being the important primary fuel for the country there will be no let up in coal production" said an official of the company, adding "we are mobilizing all our resources and will keep on resolving the issues and continue to produce, notwithstanding the adversities".

Coal is an 'essential service' as recognized under Emergency Services Maintenance Act (ESMA) 1981 and services engaged in coal industry being 'public utility service'.

The top brass of the Maharatna PSU is in contact with the Ministry of Coal and State Administrations to synergize the efforts necessary to keep up with production and despatches.Daily coordination meetings are being held with CMDs of subsidiary companies to monitor the production and upping the medical facilities.

Important materials necessary for production like, explosives, spares, tyres, machine parts and other services are being procured on war footing. Authorities of different State administration have been contacted to grant relaxation for movement of these materials essential for coal mining from Covid-19 lock down. Ministry of Home Affairs in an addendum on 25 March has clarified that coal mining and associated operations have been exempt from lock down.

There is sufficient buffer with over 107 MTs of coal stock available in the system, at CIL's pitheads and at thermal power stations of the country combined and there is no immediate cause of any coal shortage worry.

"Well being and safety of operational personnel is top priority and required medical facilities are being perked up with medical teams on high alert" said the stated official. Quarantine measures are being put in place, should the need arise.

Coal output by Coal India Limited (CIL) peaked to a new high of 3.17 Million Tonnes (MTs) on 20 March 2020 - the highest ever single day production so far - overtaking the 3.14 MTs production that the coal mining Maharatna recorded on 25 March 2019.

Mahanadi Coalfields Limited and South Eastern Coalfields Limited, two of the highest producing subsidiaries of CIL. who between them make up for around 50% of Coal India's entire production, contributed 0.93 MTs and 0.81 MTs respectively to this feat.  

"3.17 Million Tonnes is the highest ever single day production so far" said an official of the Company adding "in the remaining days of the month we aim to better this figure and increase further". In fact, the production could have been even higher but for a disturbance at Lingaraj of MCL.

CIL's production started a path of healthy recovery from October 2019 onward after a prolonged and severe monsoon impeded its production tempo. Against 240.93 MTs in the first half of the FY 2019-20 the company produced 276.85 MTs in the next five months from October 2019 to February 2020.

Coal stocks at thermal power plants of the country have risen to the highest ever inventory of 39.48 Million Tonnes (on11 March 2020) sufficient for 23 days – one day more than Central Electricity Authority (CEA) mandated 22 days stock. The previous high of coal stock at CEA monitored power plants was 39.14 MTs, around four years ago, amounting to 26 days stock. However, the average daily coal consumption back then was 1.48 MTs which currently is around 1.76 MTs. The stock is expected to further increase during the remainder of current fiscal.

Coal India Limited (CIL) supplies its coal to 125 TPPs out of 134 monitored by CEA. Coal stocks at the pitheads of CIL mounted to 51 MTs (on 11 March 2020) making it a total of above 90 MTs of coal stock at both the ends put together.

“With coal stocks comfortably placed there should not be any shortage in the ensuing summer months” said an official of CIL.

Coal India Limited (CIL) has engaged Indian Port Rail Corporation Limited (IPRCL) to execute its rail infrastructure works, construction of additional sidings, and rail line connectivity with railway main lines. A Memorandum of Understanding was signed on 5 March to the effect between the two entities. The move also will help CIL’s first mile connectivity projects.

‘First mile connectivity’ is transportation of coal from pithead to despatch point and CIL has decided to switch over to seamless mechanized coal transportation through piped conveyor belts in its large mines by 2023-24 replacing the existing road transport of coal. This will be implemented in 35 of CIL’s coal projects each having production capacity of 4 Million Tonnes per annum and above. infrastructure upgrade at these 35 projects necessitates construction of railway lines. Service of IPRCL could be beneficial here.

The scope of work of IPRCL includes preparation of feasibility study report, detailed project report and its approval from Railways, project management consultancy, execution of work, operation and maintenance of siding.

Presently two construction arms of the Indian Railways are engaged by CIL for developing rail evacuation related infrastructure. IRCON International Limited for all turnkey projects of Rail JVs of CIL and RITES for all PMC works in totality from concept to commissioning and all rail infrastructure works.

Coal India Limited (CIL) clocked a robust production growth of 14.2% for February 2020 compared to same month year ago, while coal supplies expanded by 6.8% during the period.

Coal production at 66.26 Million Tonnes (MTs), the highest ever for the referred month, was up by 8.21 MTs in volume terms compared to 58.05 MTs corresponding month year ago reflecting a growth of 14.2%.

Coal off-take has risen to 54.97 MTs in February 2020, ahead by 3.51 MTs against 51.46 MTs same month last year, scoring a healthy growth of 6.8%.

CIL as whole loaded 256.3 rakes per day on average during the month, an increase of 6 rakes per day, compared to 250.3 rakes that the company loaded February last year registering 2% growth.

At the closure of February 2020 coal stock at CIL's pitheads stood at 43.66 MTs, which is 8.75 MTs more than what it was at the end of February 2019 - 34.91 MTs.

Coal linkage based thermal power stations across the country were comfortably stocked close to 37 MTs (as of 27th Feb'20), 11.4 MTs more than same date year ago.

Coal India Limited (CIL) has liquidated over 82% of its arrear rakes to non-power sector consumers during the ongoing fiscal. These backlog rakes pertain to 2017-18 and 2018-19.

Muted demand for the dry fuel from the thermal power stations and comfortable stock position at their end provided a window for the Maharatna coal mining behemoth to bring the down the accumulated arrear rakes of the non-power sector consumers. The backlog arrears for this sector which stood close to 5140 rakes at the beginning of 2019-20 were cleared by 4230 rakes. “By the end of FY 20 we will be able to clear the rest 900 odd arrear rakes” stated an official of the company.

CIL’s supplies to non-power sector registered a growth of 4.4% at 95.45 Million Tonnes (MTs) during April-January 2020 compared to 91.47 MTs same period year ago.   

The combined coal stock, at CIL’s own pitheads and at coal linkage based thermal power plants of the country stands at a comfortable 78.25 Million Tonnes (MTs). Coal stock at power plants increased to a decade high of 36.36 MTs (as of 24th February), an average 20 day stock, just two days short of CEA mandated 22 day stock. Whereas, coal stocks at CIL’s pitheads stood at 41.63 MTs (as of 24th February). With sufficient coal available, CIL is in a position to meet the power sector’s supplies when the demand picks up.  

After the havoc of torrential monsoon which impaired CIL’s production the PSU coal miner upped its production from October 2019 onwards gradually, with January 2020 posting a double digit growth of 10.3% for a comparable month year ago.    

Mr. Pramod Agrawal, an Indian Administrative Service Officer of Madhya Pradesh Cadre 1991 batch, took over as Chairman, Coal India Limited (CIL), the world’s largest coal producing company, on and from 1st February 2020. Prior to the assumption of the top post of the Maharatna coal mining behemoth, he was Principal Secretary, Department of Technical Education, Skill Development & Employment, and Department of Labor, Government of Madhya Pradesh.

Mr. Agrawal succeeds Mr. Anil Kumar Jha who stepped down as Chairman on attaining superannuation on 31st January 2020.

On assuming the charge of the company that produces over 83% of the country’s entire coal output, Mr. Agrawal underlined his priority as “to make Coal India a competitive, economically viable business entity, in the changing scenario, with greater emphasis on operational efficiency and lowering the cost of production. Coal imports to be curtailed to the extent possible with higher coal output”.

A Graduate (B.Tech) in Civil Engineering from Indian Institute of Technology (IIT) Mumbai (1986), Mr. Agrawal completed his Post-Graduation in Design Engineering (M.Tech) from IIT, Delhi (1988).

Coal India Limited (CIL) clocked double digit growth of 10.7% in coal production for the month of January 2020, till 27th.  Coal supplies to consuming sector grew by 6.2%.

CIL’s production at 54.17 Million Tonnes (MTs) till 27th January 2020 was, ahead by 5.23 MTs in absolute terms on a like-to-like comparison of last year, registering a growth of 10.7% - the first double digit growth so far during the current fiscal. CIL as whole has been averaging close to 2 MTs per day coal output during the month.  

“The production spurt came largely on back of Mahanadi Coalfields Limited and South Eastern Coalfields Limited” said an official of the company adding “by the end of January production is likely to be up by another 8 MTs”.   

MCL surged ahead with 21.5% production growth, as of the referred date, followed by SECL with 14.4%. These are two of the largest producing subsidiaries of CIL, which combined contribute close to half of CIL’s total coal output. Much to the relief of the company, Dipka opencast mine of SECL, the third largest coal producing mine of CIL came back strongly in record time reaching 1 Lakh tonnes per day production. Dipka’s lower benches were flooded when a non-seasonal river broke the embankment and flooded the mine on 29th September 2019.

Coal off-take at 48.07 MTs, as of 27th January 2020, registered a growth of 6.2% compared to same date last January, the increase in volume terms being 2.82 MTs.

There is no shortage of coal in the power plants, with a total of 65.66 MTs currently available in the system, of which stock at CIL’s pitheads is 31.41 MTs.  Whereas, thermal power plants of the country were adequately stocked with 34.25 MTs of coal (as of 26 January) sufficient for 19 days consumption. The current level of coal stock at the power plants is 14.89 MTs more than that of a year ago period. Last year same date it was 19.36 MTs.  

“Better management of supply logistics ensured that coal stock at various power stations was maintained throughout the year and the number of critical power plants never touched double digit during 2019-20 as per CEA” said the stated official. After almost 3 years, the number of NTPC plants and NTPC/JVs having super critical stock was down to zero.

With power plants sufficiently stocked with coal supplies, it gave leeway to Coal India to liquidate over 78% of non-lapsable arrear rakes of non-power sector consumers pertaining to 2017-18 and 2018-19. Beginning with 5143 arrear rakes as of 1st April 2019, CIL brought down the number to about 1116 thus clearing 4027 rakes and is hopeful of clearing the rest by the end of the current fiscal. 

Coal resources of Coal India Limited (CIL) received a boost of 8.3 Billion Tonnes (BTs) after latest allocation of 16 coal blocks by the Government of India to the state owned Maharatna PSU. The resource capacity of CIL took a leap to over 172 BTs from 164 BTs after the allocation of new blocks. This makes CIL’s resources around 54% of the country’s entire coal resource.

At the current rate of coal production and even after taking into account the projected growth in the ensuing years, the present coal resources under CIL’s fold will enable it to meet the expanding coal demand of the country to a considerable extent.

The country’s coal requirement is huge and is increasing with the thrust on capacity addition in power sector. Evidently, the domestic demand for coal is far outstripping the rate of indigenous production. Coal India alone, despite its best efforts, may not be able to meet the burgeoning coal demand.

If commercial miners step in to fill in this gap by increasing domestic coal production it would be a welcome step. Coal imports were at 235 Milion Tonnes (MTs) during 2018-19. The point is to become self-reliant in meeting the coal demand internally and reduce the import dependency.

“Notwithstanding the entry of private miners in commercial coal mining, CIL is confident of staying ahead of the competition with a strong resource base, core expertise of operations, updated mechanization and multi-disciplinary work force” said an official of the company.

Coal India Limited (CIL) ended the month of December 2019 on a high note producing 58.02 Million Tonnes (MTs) of coal, the highest production for December since inception, clocking a growth of 7.2% compared to 54.14 MTs same month year ago. The increase in volume terms has been 3.89 MTs. December’s production witnessed 16% month-on-month growth compared to November 2019.

The upside for CIL is that, two of its best producing companies South Eastern Coalfields Limited and Mahanadi Coalfields Limited have come back strongly in December 2019 with production growths of 11.3% and 10.1% respectively.  

Dipka OC mine of SECL, a big contributor to Coal India's production. which was flooded, on 29 September, is back on the track producing 85,000 tonnes per day and in the near future will achieve over 1 Lakh tonnes per day.

Coal supplies at 53.63 MTs, as well registered a modest growth of around 2% during December 2019 compared to 52.61 MTs of a year ago period.

"The company regained production tempo from October 2019 onward notching a robust month-on-month growth of 28% followed by 27% month-on-month growth in November 2019. With production perking up in December we are pushing hard to take our output levels to higher scale in the remaining months of the fiscal” said an official of the company.

December 2019 also turned out well for Coal India in Over Burden Removal (OBR), an important performance parameter that exposes coal for future production, as CIL whole cleared 120.39 Million Cubic Metres of OBR registering a 9.5% growth compared to same month during year ago period.

At the closure of December 2019 total coal stock at pitheads of CIL's companies stood at a comfortable 25.3 MTs, ahead by 2.1 MTs than a year ago period. Power Plants are also flush with 31.63 MTs of coal stock sufficient for 18 days’ consumption more than twice what it was on same day last year. The total coal available in the system is close to 57 MTs.

In a first of its kind, Coal India Limited (CIL) has joined hands with a State Government owned coal company, Odisha Coal and Power Limited (OCPL) for sale of coal produced from its captive mining block, Manoharpur in Jharsuguda. This is part of a series of measures that Government of India is pursuing to make more indigenous coal available in the country beyond CIL's production.

Primarily, coal produced from coal blocks allocated by Government of India is for captive consumption in the designated end use power plants. However, in a situation where the coal produced at the captive block exceeds the requirement of the designated end use power plant, there is a provision in the Coal Mines Development and Production Agreement for supply of such excess coal to CIL. CIL may supply the coal thus received to its own customers. This helps in making more domestic coal available in the system to bridge the gap between demand and availability.

In this regard, Ministry of Coal has guided CIL and other stakeholders in finalizing the modalities for supply of excess coal produced from the mines of captive coal block allocatees. After CIL's Board had given its seal of approval for the modalities on 11th November, 2019 Mahanadi Coalfields Limited (MCL) the Odisha based subsidiary of CIL and OCPL have entered into a MoU for provisioning of excess coal from Manoharpur coal block to MCL in what would be a win-win situation for both companies.

Manoharpur and dip side of Manoharpur coal blocks with a production capacity of 8 Million Tonne per annum were allocated to Odisha Coal and Power Limited (OCPL) in August 2015 to supply coal to IB Thermal Power Plant (2X600 MW) owned by Odisha Power Generation Corporation (OPGC). 

Till the time production started from this block MCL stepped in to supply coal to OPGC through bridge linkage to the tune of 4.8 Million Tonnes per annum. Bridge Linkage is a short term linkage to bridge the gap between requirement of coal of a specified end use plant and the start of production from the linked allotted coal block.

Though coal production from Manoharpur block of OCPL has started, coal could not be reached to OPGC owned IB Thermal Power Plant due to evacuation bottlenecks forcing OCPL to stop coal production.

CIL had quickly moved in to the rescue of OCPL for a mutually beneficial pact. As per MoU MCL shall receive 6,000 tonnes of coal per day from OCPL which helps the latter to reduce its excess stock pile. And, for MCL's advantage this coal could be supplied to its customers. This would benefit the country by way of increased availability of domestic coal. For the purpose, MCL has designated a siding where it would receive coal from OCPL and would despatch the same to its own consumers through rail mode.

“The advantage is two-fold” stated an official of CIL, supplementing “it would not only help OCPL to lower its stock pile and sell coal, but the company can also continue production from Manoharpur block. From CIL's perspective this excess coal received helps in enhancing coal supplies to its consumers, particularly for liquidating the arrear rakes of the non-power consumers”.

The arrear rakes of previous years to non-power sector which stood around 5100 at the beginning of the current fiscal have been brought down to a level of around 1600 rakes. 

Moreover, MCL would continue to supply coal to IB TPP (2X600 MW) OPGC under Bridge Linkage to help them generate power, as OPCL requires more time to complete the infrastructure to reach the coal from the Manoharpur Block.

In an another major step to increase the availability of indigenous coal, Ministry of Coal, vide its order of 7th March 2019 has allowed the future allocatees of coal mines to sell upto 25% of their annual production in open market.

Coal India Limited (CIL) has set the wheels in motionto purchase its own rail wagons, in a maiden venture,under General Purpose Wagon Investment Scheme,introduced by IndianRailways, where customers could own wagons for dedicated transportof their product. CIL decided to seize this opportunity for improved loadingof coalfrom areas where production is expected to expand rapidly. Having its own rakesassuresthe company to pushincreased quantities of coal especially to power plants in desiredroutes. Higher indigenous supplywould also help reduce the imports to some extent. Recently, the MaharatnaPSU’s Board has green flagged the proposal to procure 40 rakes of its own at nearlyRs. 700 Crores.One rake comprises of 59 wagons.A back of the envelope calculation indicates that one rake can move 1.4 MTs of coal per annum. With the internal rate of return being financially viable and attractive,CIL expects torealize its entire investmenton the rakeswithin a decade. With the life of wagons spanning 35 years it would be an asset creation for CIL as well. “During 2018-19Coal India,as whole,on an average loaded 236 rakes per day which isexpected to climb up to 400 rakes per dayin the coming years as the company has set about an ambitious plan to increase its production volume to 1 Billion Tonnein next few years” said an official of CIL adding “these CIL owned rakes dedicated only for transport of CIL’s coal will help us in pushing higher volumes of coal to the power sector”.Initially, the rakes would ply in South East Central Railway (SECR) zone in Jharsuguda-Nagpur and Katninorthwards covering complete IB Valley and the entire stretch of South Eastern Coalfields Limited regions,where the production is expected to perk up,catering to the demand of 15 power plants under SECR.The matrix of SECR’s carrying capacity and CIL’s envisaged growth in coal production is favourable for deployment of the proposed CIL rail wagons.CILif it wants may seek changingof the route for movement ofrakes once in six months.CIL has opted for the wagons of latest addition to the fleet of IR which have highercarrying capacity of 80 Tonneseach wagonagainst the conventional 70 tonnes. Once the load bearing capacity of track increases then CIL wagons can load higher volumes of coal per wagon.Increase inrail transport of coal would offset the same quantity of road transport. Rail being cheaper mode of transport compared to road coal consumers will incur lower costs on rail transport.