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Home»Company Information»Director's Report

DIRECTORS' REPORT

Coal India Ltd.

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You can view full text of the latest Director's Report for the company.

Market Cap. ( in Cr. ) 122607.48 P/BV 4.63 Book Value ( ) 42.93
52 Week High/Low ( ) 300/193 FV/ML 10/1 P/E(X) 7.02
Book Closure 21/08/2019 EPS ( ) 28.33 Div Yield (%) 6.58
Year End :2019-03 

Ladies and Gentlemen,

On behalf of the Board of Directors, I have great pleasure in presenting to you, the 45th Annual Report of Coal India Limited (CIL) and Audited Accounts for the year ended 31st March, 2019 together with the reports of Statutory Auditors and Comptroller and Auditor General of India thereon.

Coal India Limited (CIL) is a ‘Maharatna’ company under the Ministry of Coal, Government of India with headquarters at Kolkata, West Bengal. CIL is the single largest coal producing company in the world and one of the largest corporate employers with manpower of 285479 (as on 1st April, 2019). CIL operates through 83 mining areas spread over eight (8) provincial states of India. Coal India Limited has 364 mines (as on 1st April, 2019) of which 166 are underground, 180 opencast and 18 mixed mines. CIL further operates 16 coal washeries, (12 coking coal and 4 non-coking coal) and also manages other establishments like workshops, hospitals, and so on. CIL has 27 training Institutes. Indian Institute of Coal Management (IICM) is an excellent training centre operates under CIL and imparts multi-disciplinary management development programmes to the executives. Coal India’s major consumers are Power and Steel sectors. Others include cement, fertilizer, brick, kilns, and a host of other industries.

CIL has eight fully owned Indian subsidiary companies namely Eastern Coalfields Limited (ECL), Bharat Coking Coal Limited (BCCL),Central Coalfields Limited(CCL),Western Coalfields Limited (WCL),South Eastern Coalfields Limited (SECL),Northern Coalfields Limited (NCL),Mahanadi Coalfields Limited (MCL) and Central Mine Planning & Design Institute Limited (CMPDIL).In addition, CIL has a foreign subsidiary in Mozambique namely Coal India Africana Limitada (CIAL).

The mines in Assam i.e. North Eastern Coalfields is managed directly by CIL.

Mahanadi Coalfields Limited, a subsidiary of Coal India Ltd is having four (4) Subsidiaries, SECL has two (2) Subsidiaries and CCL has one (1) subsidiary.

1. STATE OF COMPANY AFFAIRS

1) For the year Company produced all time high production 606.89 MT with a growth of 6.97% and achieved an all time high off take 608.14 MT with a growth of 4.8%.

2) As on 01.04.19, not a single power plant in country was in critical, super critical list of CEA for want of coal.

3) Achieved highest PBT of Rs. 27125.46 crores and PAT of Rs. 17462.18 crores during the year.

4) All the eight subsidiaries of Coal India Ltd. achieved PBT and PAT during the year.

5) Tori-Shivpur single line of 44.37 KMs had been completed in SeptemberRs. 2018 and is now operational. Jharsuguda-Barpalli-Sardega Rail link of 52.41 KMs had been commissioned in AprilRs. 2018. CERL phase-I track linking of first 44 KM from Kharsia to Korichhapar (Single line) completed.

6) For implementation of ERP, contract signed and work commenced on 24th SeptemberRs. 2018.

2. FINANCIAL PERFORMANCE

2.1 Financial Results (CIL Consolidated)

During the year, CIL has registered highest ever profit. CIL has achieved an aggregate Pre-Tax Profit of Rs 27,125.46 crores and post-tax profit of Rs. 17,462.18 crores for the year 2018-19 as against pre-tax profit of Rs. 10,770.31 crores and post-tax profit of Rs. 7038.44 crores in 2017-18 thereby recording an increase of 151.85% and 148.10% in pre-tax profit and post-tax profit respectively. The subsidiary wise details of Pre-tax Profit are given in Annexure 1.

Highlights of performance

The highlights of performance of Coal India Limited Consolidated for the year 2018-19 compared to previous year are shown in the table below:

Particulars

2018-19

2017-18

Production of Coal (in million tonnes)*

606.89

567.37

Off-take of Coal (in million tonnes)

608.137

580.287

Sales (Gross) (Rs./Crores)

140603.00

126543.97

Capital Employed (Rs/Crores) Note-1

65780.07

55643.32

Capital Employed (Rs/Crores)- excluding capital work in progress and intangible assets under development

52046.54

41856.51

Net Worth (Rs./Crores)

26435.04

20159.53

Profit Before Tax (Rs./Crores)

27125.46

10770.31

Profit for the Period (Rs/Crores)

17462.18

7038.44

Total Comprehensive Income for the period (Rs/Crores)

17479.56

7681.26

Profit for the Period / Capital Employed (in %)

26.55%

12.65 %

Profit before Tax / Net Worth (in %)

102.61%

53.43 %

Profit for the period / Net Worth (in %)

66.06%

34.91%

Earning Per Share (Rs.)

(Considering Face Value of Rs.10 per share)

28.14

11.34

Dividend per Share (Rs.)

(Considering Face Value of Rs.10 per share)

13.10

16.50

Coal Stock (Net) (in terms of No. of months Net Sales)

0.53

0.74

Trade Receivables (Net) (in terms of No of Months Gross Sales)

0.47

0.59

*Production and Offtake of Coal for FY 2018-19 includes 3.27 MT and 1.68 MT (FY 2017-18 3.227 MT and 1.327 MT) in respect of Gare Palma IV/2&3 and Gare Palma IV/1 OC Mine for which Coal India Ltd. has been appointed akin to a designated custodian w.e.f 01.04.2015 (through SECL)

Note-1: Capital employed = Gross Block of Fixed assets (including capital work in progress and intangible assets under development) less accumulated depreciation plus current assets minus current liabilities.

Transfer to Reserves General Reserve:

During the year 2018-19, a sum of Rs. 782.12 crore (Rs. 544.89 crores) was transferred to General Reserves out of CIL Consolidated profits and amount of Rs. 1206.90 crores was utilized for buyback of shares and tax on buyback in 2018-19 (amount of Rs. 483.80 crores was utilized for issuing of bonus shares in 2017-18).

Capital Reserve:

Grant / Funds received from various implementing agencies like Science & Technology, Promotional Regional Exploration, Coal Controlling Development Authority etc. and used for creation of assets are treated as Capital Reserve and depreciation thereon is debited to Capital Reserve Account. The ownership of the asset created through grants lies with the authority from whom the grant is received. The balance of grants as on 31.03.2019 and 31.03.2018 is Rs.18.88 crores and Rs.19.21 crores respectively.

During the Year 2018-19, MCL, NCL and SECL bought back 442967, 518560 and 490039 No. of shares respectively for a cash outflow of Rs.355 Crore each along with premium of Rs.310.70 Crores, Rs.303.14 Crores and Rs.306 Crores respectively. Difference in Carrying Value of Investment in subsidiaries and Share capital of Subsidiaries after above Buy-Back Rs.105.51 Crores is adjusted to Capital Reserve.

2.2 Dividend Income and Pay Outs (CIL Standalone)

While the financial statements of both CIL Standalone and CIL Consolidated are presented separately, only CIL Standalone is listed and relevant for dividend payment to its shareholders. The dividend to its shareholders are paid out of CIL’s Standalone income, the major part of which constitutes the dividend income received during 2018-19 from its five profit making subsidiaries i.e. CCL, NCL, SECL, MCL and CMPDIL. The breakup of such dividend received and accounted for during the year from different subsidiaries are given in Annexure 2.

During the year ended 31.03.2019, Government of India has further disinvested 7.388% of total Equity share capital equivalent to 45,83,61,363 no. of equity shares by way of placement of shares via various modes.(including Offer for Sale). Subsequently, Offer for Sale of shares was undertaken for Employees of Coal India Ltd. and its Subsidiaries. 1192 employees were successfully allotted 681840 Shares @ Rs. 254.22 amounting to Rs. 17.33 crores.

Further, during the year CIL has carried out a Buyback of 4,46,80,850 nos. comprising Govt. Shares 4,42,93,572 of its own equity shares of Rs.10 each at a price of Rs. 235 per equity shares, aggregate consideration amounting to Rs. 1050 crores. The date of extinguishment of Share was 22.03.2019. Thus, holding of Government of India stands at 70.96% of Total Equity share capital as at 31st March, 2019.

During the year 2018-19, CIL Standalone has paid a total dividend (by way of interim dividend) of Rs. 8105.58 crores @ Rs. 13.10 per share of Rs.10/ - each fully paid up. Out of above total dividend, the share of Govt of India was Rs. 5839.33 crores and for other shareholders, Rs. 2266.25 crores. (Earlier year - Total Dividend Rs. 10242.24 Crores; Govt of India - Rs. 8044.86 crores and Other shareholders - Rs. 2197.38 crores)

2.3 Supplementary Audit of Financial Statements by Comptroller and Auditor General of India (C&AG)

There are no comments issued by the office of the C&AG either on Standalone or Consolidated Financial Statements of the company for the year 201819 on supplementary audit conducted under section 143(6)(a) [and also read with Sec 129(4)] of the Companies Act,2013.The comments on supplementary audit of Standalone and Consolidated Financial Statements are enclosed as Annexure 3 and Annexure 4 respectively.

2.4 Management Explanation on Statutory Auditor’s Report

The statutory auditors of the company have given an unqualified report [Annexure 3(A) and Annexure 4(A)] on the Standalone Financial Statements and Consolidated Financial Statements respectively of the company for the financial year 2018-19. However, they have drawn attention to certain matters under “Emphasis of Matters”.

The Auditors have drawn attention under Emphasis of Matter regarding long term (non-current) investments in two subsidiaries by the CIL Standalone, which have been adequately explained in footnote 1 of note no.7.

In consolidated accounts the Auditors have drawn attention regarding confirmation of balances (Ref. note no. 38.5(m) ) ; regarding contingent liability towards penalty for mining of coal in excess of the environmental clearance limit in respect of certain mines (Ref. note no.38.5(a)(i) ) ; regarding provision if any unascertained, pending price finalisation of washed medium coking coal supplied by CCL a subsidiary of CIL (Ref. note no. 38.7(p)(vii)).

These issues have been adequately explained in the respective notes/footnotes in the accounts referred above.

There were certain other issues in a few subsidiaries, wherein the Auditors have drawn attention viz.)/ regarding certain incomes/expenses of earlier years relating to write back of progressive mine closure expenses(in case of BCCL) / depreciation on PPE(in case of CMPDIL)/ adjustment in sales(in case of CMPDIL) etc. considered in current year in view of non-material impact in each of these cases ; non-inclusion of interest from the date of demand to the date of Balance sheet on disputed income tax in contingent liability (in case of NCL) in view of the company having obtained favourable decision from higher authorities on similar disputes in past cases ; absence of requisite women director in the Board and accumulation of Input Tax Credit of GST (in case of WCL) . While the issue of women director appointment has been taken up with appropriate authorities, the accumulated Input Tax Credit is non lapsable and is expected to be utilised in future.

3. COAL MARKETING

3.1 Sale of Coal

- Offtake of raw coal crossed 600 Million Tonnes (MT) landmark and a record offtake of 608.137 MT was achieved during 2018-19, surpassing the previous highest of 580.28 MT achieved during the last year by 4.80 %. In the process, 1.396 MT of coal stock was also liquidated during the year. Company-wise target vis-a-vis actual off-take for 2018-19 and 2017-18 are shown in Annexure-5.

- Despatch of coal and coal products during 2018-19 was at 608.300 MT, almost at 100% materialization of the target. Sector-wise breakup of dispatch of coal & coal products for 2018-19 against the target and last year’s actual is given in Annexure-6.

- A major thrust was made to bring the linked thermal power stations of the country out of critical stock position. A record dispatch of 491.54 MT of coal and coal products was made to power sector in 2018-19, exceeding the target of 489.01 MT and registering a growth of 8.2% over 454.224 MT dispatched in 2017-18. As the result, about 15 MT of coal was added to the stocks of the linked power station and none of them was in the critical stock list of CEA as on 31.3.2019, though as many as 30 of them were in the critical stock list as on 1.4.2018

- Improvement in stocks with power sector had provided the leeway to CIL increase the despatches to Non-Power Sector from the fourth quarter of 2018-19 onwards.

- Auction of coal through Spot e-Auction, Special Spot e-Auction, Special Forward e-Auction for Power and Exclusive e-Auction for NonPower schemes had continued during 2018-19 with better yields as compared to the previous year. Booking of coal in the auctions conducted during 2018-19 was against a premium of Rs. 8983 crores, at 77% over the notified price of coal. The booking of coal in the auctions conducted in 2017-18 was against a premium of Rs.6589 crores, at 50% over the notified price.

3.2 Long term demand creation

- Additional long term demands are created through linkages allotted through the below mentioned schemes formulated by the government:

A. Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India (SHAKTI), for Power Sector notified by the government on 22.05.2017.

B. Auction of coal linkages to Non-Regulated Sector (NRS) notified by the government on 15.02.2016.

A. SHAKTI :

SHAKTI Policy contains provisions for coal supply for various categories of power plants fulfilling different criteria.

Until 2018-19, MoC has recommended signing of FSA with 8 Thermal Power Plants (TPPs) under the provisions of Para A(i) of SHAKTI for an Annual Contracted Quantity of 20.167 MT and FSAs have been signed with 5 TPPs for the ACQ of 16.967 MT. Also, on the recommendation of SLC(LT), FSAs have been signed under the provisions of Para B(i) of SHAKTI with 4 Central/State Gencos for an ACQ of 8.883 MT as on 31.3.201 9.

Further, linkage of 27.18 MTPA had been booked by the power plants in the auction of linkage conducted by CIL under the provisions contained under Part B(ii) of SHAKTI, out of which FSAs for 26.28 MTPA had been executed until 2018-19. The levellised discounts in tariff offered by these power plants for securing these coal linkages is expected to result in an annual saving of Rs.125 crores in tariff for the end users.

More long term demand through FSAs shall be added, as linkages are expected to be granted through the second round of linkage auction under Part B(ii) of SHAKTI and as grant of linkages under other provisions of SHAKTI are gradually being operationalized, the modalities of which are under finalization by the Ministry of Power / Ministry of Coal.

B. Auction of coal linkages to Non-Regulated Sector:

Fresh linkages to consumers in Non-Regulated Sector are granted through auction of linkages conducted in terms of the policy formulated by the government on 15.2.2016. The coal against the linkages secured in the linkage auctions are supplied under the FSAs to be executed for a period of 5 years, the tenure of which can be extended further for 5 years upon mutual consent. In case of Steel Sector, the FSA tenure has been increased from 5 years to 10 years, with provision of mutual extension by another 5 years.

In the events of Tranche-IV of the linkage auctions conducted during 2018-19, linkage of 33.18 MT/Per Annum was secured by the consumers at an average premium of 32.68% of the Notified Price. In the four tranches of auctions conducted between the years 2016-17 and 2018-19, total linkage of 78.36 MT/Per Annum had been granted at weighted average premium of 20.26% over the Notified Price. The additional premium shall be applicable throughout the tenure of these FSAs over the Notified Price applicable from time to time for the supplies.

3.3 Long term demand committed through FSAs:

Considering the FSAs executed earlier with the power plants under the provisions of NCDP and the FSAs executed under various provisions of SHAKTI, there exists operative linkage for a total quantity of about 572 MTPA with the Power Sector as on 31.3.2019, which is bound by long term supply commitments through FSAs.

The total commitments with Non Power consumers, including the ACQ against the operative FSAs executed under the earlier linkage regime under NCDP, linkages secured under the linkage auction policy for Non-Regulated Sector notified by the government on 15.2.2016 and the FSAs executed with State Nominated Agencies, stands at around 95 MT as on 31.3.2019.

To cope up with any scenario of deficit in availability of coal, supplies under the FSAs have been pegged at various levels of commitment.

3.4 Consumer satisfaction

- 3.4.1 Quality Management

For enhanced customer satisfaction, special emphasis has been given to Quality Management of coal from mine to dispatch point.

Now, all the consumers of CIL have the option for quality assessment of the supplies through independent third party sampling agencies. In order to monitor coal quality, a portal ‘UTTAM’ (Unlocking Transparency by Third Party Assessment of Mined Coal) has been launched by CIL to capture the entire cycle of sample. With the help of this portal, information of coal quality on regular basis will be accessible to both Coal Companies and Consumers.

As many as 46 coal testing laboratories across the subsidiary companies of CIL are now NABL accredited and accreditation process is underway in respect of another 09 labs.

As the result of conscious and continuous measures taken towards quality maintenance, the gap between the weighted average of declared and analyzed GCV of coal reduced remarkably to 275 Kcl/Kg in 2018-19 from 383 Kcl/Kg in 2017-18, narrowing down the variation well within one GCV band.

- 3.4.2 Linkage Rationalization

Linkage rationalization initiatives to reduce the cost of transportation of coal and cost of generation of power were continued during the year 201819 also. Under the ambit of the linkage rationalization policy notified by the government on 15.5.2018, sources of linkage for a quantity of 5.42 MT for the State / Central Gencos was rationalized in 2018-19, yielding a potential savings in transportation cost by about Rs.292 crs. Rationalization in respect of 2 IPPs is in the process, which upon implementation would result at a benefit of Rs.118 crs to end use consumers by way of reduction in power tariff as estimated by CEA. The total annual savings expected for the consumers due to linkage rationalization carried out until 2018-19 is around Rs.3700 crores.

3.5 Coal Beneficiation:

Presently, CIL is departmentally operating 16 Coal Washeries with a total coal capacity of 36.80 MTY. Out of which 12 are coking and balance 4 are non-coking with a capacity of 20.58 MTY and 16.22 MTY respectively. The total washed coal production from these existing washeries for the year2018-19 has been about 13 MTY.

To enhance the beneficiation capacity, CIL is setting up 18 new washeries with state-of-the-art technology in the field of coal beneficiation with an aggregate throughput capacity of 91.10 MTY. Out of these 18 new washeries, 9 are coking coal washery with a total capacity of 28.10 MTY. One coking coal washery with capacity of 1.6 MTY has been commissioned in 2018 on Build-Operate-Maintain concept. Another 9 washeries are being set up for non-coking coal with an aggregate capacity of 63 MTY.

3.6 Stock of Coal

The stock of coal (net of provisions) at the close of the year 2018-19 was Rs. 4138.24 Crores (earlier year Rs.4979.09 crores), which was equivalent to 0.53 month value of Net Sales (previous year 0.74 months). The company-wise position of stock held on 31st March 2019 & on 31st March 2018 are given in Annexure 7.

3.7 Trade Receivables

Trade Receivables i.e. net coal sales dues outstanding as on 31.03.2019, after providing Rs. 1721.76 crores (previous year Rs. 1742.91 crores) for bad and doubtful debts, was Rs. 5498.55 crores (previous year Rs. 6257.80 crores) which is equivalent to 0.47 months Gross Sales of CIL as a whole (previous year 0.59 months). Subsidiary-wise break-up of trade receivables outstanding as on 31st March 2019 as against 31st March 2018 are shown in Annexure 8.

3.8 Payment of Royalty, Cess, Sales Tax, Stowing Excise Duty, Central Excise Duty, Clean Energy Cess, Entry Tax & Others

During the year 2018-19, CIL and its Subsidiaries paid/adjusted Rs. 44,826.43 crores (previous year Rs. 44046.57) towards Royalty, Cess, Sales Tax and other levies as per details given in Annexure-9.

4. COAL PRODUCTION & FUTURE OUTLOOK

Raw coal production and production from underground and opencast mines.

Production of raw coal was 606.89 Mill Te during 2018-19 against 567.37 Mill Te during 2017-18. Production from opencast mines during 2018-19 was 94.98% of total raw coal production. Subsidiary wise production, production from underground and opencast mines and coki ng and noncoking coal production are disclosed under Annexure 10.

Washed Coal (Coking) Production- Subsidiary-wise production of Washed Coal (Coking) is given in Annexure 10A.

Overburden Removal- Company-wise overburden removal is disclosed in Annexure 10B.

FUTURE OUTLOOK

Based on the demand projection in ‘Vision 2030’ for coal sector in the country and subsequent demand projection on CIL, a Perspective Plan has been prepared to project production plan in medium and long term basis upto 2030-31 wherein CIL has envisaged to grow at the rate of about 7.6 % till FY 2024-25 to meet the coal demand of the country. To achieve projected growth in production, CIL has identified major projects and assessed their related issues.

The capital expenditure for the year 2019-20 has been set at Rs.10000 Crores. CIL has planned to invest substantial amount in diversification projects viz. Solar Power, Revival of Fertilizer Plants, acquiring coking coal assets in Australia and Canada, Coal Gasification, CBM, Rail Wagon procurement etc. during 2019-20.

5. POPULATION OF EQUIPMENT

The Population of Major Opencast Equipment (Heavy Earth Moving Machinery) as on 1.4.2019 and as on 1.4.2018 along with their Performance in terms of Availability & Utilization expressed as percentage of CMPDI Norm is disclosed in Annexure 11.

There are increase of 97 Dumpers in ECL, NCL & WCL on receipt of New Equipment ordered. CIL is planning to procure High Capacity Equipments of more than Rs. 7000 Crores viz. 6 Dragline, 31 Shovels, 300 Dumpers and 47 Dozers in next 3 years for enhanced coal production target in coming years.

6. CAPACITY UTILIZATION

During 2018-19, total volume of coal and overburden handled by CIL was about 1544 M.Cum. The overall system capacity utilisation of CIL thus worked out to be about 78% is given in Annexure-12.

7.0 PROJECT FORMULATION

7.1 Project Implementation:

a) Projects Completed During the year 2018-19:

5 coal projects, with a sanctioned capacity of 11.07 Mty and sanctioned capital of Rs 989.43 Crores have been completed during the year 2018

19. The details are enclosed as Annexure-13.

b) Project started Production during the Year 2018-19:

2 coal projects, with a sanctioned capacity of 11.20Mty and sanctioned capital of Rs 1502.65Crores have started during the year 2018-19 and Produced 2.91 Mty. The details are enclosed as Annexure-13.

c) Status of Ongoing Projects:

A total of 120 coal projects costing Rs. 20 Crores and above are in different stages of implementation. Out of which 66 Projects are on schedule and 54 Projects are delayed. The major reasons for delay in implementation of these projects are due to delay in obtaining EC, FC, possessions of land and issues related to R&R, contractual issues and evacuation facilities etc.

7.2 Projects Sanctioned (Costing Rs 20 Crores & above):

a) PR/UCE/RPR/RCE sanctioned by CIL & Subsidiary during 2018-19:

20 Projects with total rated capacity of 87.81 Mty and total investment of Rs. 11807.78 Crores have been approved during 2018-19. The details are enclosed as Annexure-13.

b) Non-Mining Projects Sanctioned by CIL & Subsidiary during 2018-19:

2 non-mining projects with a sanctioned capital of Rs. 6656.33 crores have been approved during 2018-19The details are enclosed as Annexure-13.

7.3 Key Strategies:

(i) Coal Evacuation:

In order to achieve the planned growth in coal evacuation, CIL has deployed a multi-pronged strategy, which is enumerated below. For Improved Coal evacuation and movement

- Strengthening of existing infrastructure viz. CHP, Siding and road etc. for coal movement

- Constant persuasion with Ministry of Railways for expeditious implementation of identified critical railway projects in potential coalfields.

CIL has planned to invest/invested in 6 Railway Projects for coal evacuation:

- 3 funded by Coal India limited

- 3 funded through SPVs

(Details available in MD & AR under the sub-head Marketing Out Look, head (Outlook)

(ii) Acquisition and Possession of land:

In all Subsidiaries of Coal India, the major portion of land is acquired under the Coal Bearing Areas (Acquisition & Development) Act, 1957. During 2018-19, notification U/S-9 (1) has been issued for about 1557 Ha and notification U/S-11 (1) has been issued for about 2507 Ha. During 2018-19, about 3398 Ha of land has been taken in physical possession in different subsidiaries of Coal India Limited.

(iii) WEB Based Online Monitoring System:

Monitoring of 80 coal mining projects costing more than Rs 150 Crores with Project monitoring software ‘MS Project’ have been started in Coal India limited. Regular interactions with subsidiaries is being done. Regular workshops are also being organised to train the executives in MS Project software.

Project Monitoring Division of CIL in association with CMPDI has launched MDMS (Mine Database Management System) portal to monitor the ongoing projects costing Rs 20 Crs and above in CIL. The system is fully operational and projects are being reviewed periodically through this portal.

Crucial issues are also being uploaded by CIL and its subsidiary companies on the e-CPMP Portal of MOC and MOC is vigorously following up with the state governments and other associated ministries by holding meetings with concerned officials to expedite EC & FC approvals.

7.4 One Billion Coal Production Programme

As stated above, the road map for 1 Billion tonne coal production has been firmed up based on demand projection as in the ‘Vision 2020-30’ document of CIL. For achieving these targets, CIL has envisaged to grow at the rate of 7.6% till FY 2024-25 and has also identified major projects along with their related issues.

8. CONSERVATION OF ENERGY

Conservation of energy always remains a priority area and CIL/Subsidiaries have extensively exercised various measures towards reduction in specific energy consumption.

Even though Coal Production has increased by 6.97% in 2018-19 compared to 2017-18, electricity consumption has reduced to 4503.31 Million Units vis-a-vis 4605.68 Million Units during 2017-18 with a reduction of 2.22% in absolute terms. In terms of total coal production Electricity Consumption during 2018-19 is 7.42 kWh/T vis-a-vis 8.11 kWh/T during 2017-18 with a reduction of 8.59%. However, in terms of composite production, Specific Energy Consumption (kWh/CuM) during 2018-19 is 2.78 kWh/CuM vis-a-vis 2.99 kWh/CuM during 2017-18 with a reduction of 6.89% from previous year.

Some of the salient measures taken by CIL/Subsidiaries for energy conservation are stated below :-

- CMPDIL has undertaken energy conservation studies in 2018-19 and carried out Diesel Audit & Benchmarking of specific diesel consumption in 94 opencast mines in different subsidiary companies of CIL revealed an aggregate saving potential of 17920 kilo litres/ year in diesel consumption.

- Electrical Audit and Benchmarking carried out in 05 mines (03 opencast mines and 02 underground mine) revealed an aggregate saving potential of Rs 4.85 crores.

- High wattage luminaries /conventional light fittings have been replaced with low power consuming LEDs of appropriate wattage in majority of the places for street lighting, office and other work places, townships etc., thereby resulted huge saving potential in electricity consumption. In 2018-19 more than 76000 LED lights in different capacity have been installed in different Areas.

- Almost all the areas of the subsidiary companies have maintained Power Factoras high as 95% during 2018-19.by installing Power Capacitors of appropriate kVAR rating. Incentive received by different subsidiaries on account of power factor improvement are -NCL -Rs 3.42 Crore ,EcL-Rs 29.63 Crore, BCCL -Rs 5.0 Crore, nCl - Rs 7.6 Crore, SECL -Rs 4.34 Crore, CCL -Rs 1.35 Crore, MCL-Rs 1.00 Crore CIL / Subsidiary Companies are also pursuing use of alternative energy sources. Various steps have been taken for utilizing solar power as alternate sources of energy, some of which are as stated below :

- In kilo-watt scale, roof top solar plants are in successful operation at various places since their commissioning. Some of these operating plants are at Corporate Office of Coal India Ltd, New town, Kolkata (160 kWp), CMPDIL HQ and regional institute (351kWp), different areas of ECL (159kWp), Different Areas of WCL (1097kWp), HQ office building ,CCL (477.5 kWp) and NEC(12 kWp) etc..

- In megawatt scale, one ground-mounted solar power plant (2.016 MWp) is in operation at MCL HQ premises since it’s commissioning on 13.10.2014.

9. CAPITAL EXPENDITURE

Overall Capital Expenditure during 2018-19 was Rs. 7311.46 crores as against Rs. 9334.55 crores in previous year. Capital Expenditure incurred during 2018-19 is 76.96% of BE (109.82% in 2017-18). Subsidiary-wise details of which are given in Annexure 14.

10. COAL VIDESH DIVISION

I. INITIATIVES FOR ACQUISITION OF COAL ASSETS ABROAD:

(A) Acquisition of coking coal assets abroad

Pursuant to the directives of the Board, CIL has undertaken initiatives for acquiring stakes in coking coal assets in Australia, Canada &USA, being the major sources for coking coal imports to India. As an outcome of such initiatives, a few potential coking/semi coking coal assets have been identified in Australia and Canada for due diligence. Tenders have been floated for selection of Investment Banker (IB)/Merchant Banker (MB) to render financial due diligence and transaction advisory services for framing of asset specific investment proposal. The IB/MB will be assisted by Technical Consultant, Legal Consultant and Tax & Accounts Consultant for due diligence in their respective domains for whose selection tenders will be floated in due course.

11. REVIVAL OF FERTILIZER PROJECTS:

(A) Setting up of natural gas based ammonia-urea complex at Gorakhpur, Sindri and Barauni

A Joint Venture company named Hindustan Urvarak & Rasayan Limited (HURL) comprising of CIL, NTPC, IOCL, FCIL and HFCL has been constituted with the following shareholding pattern:

CIL: 29.67%, NTPC: 29.67%, IOCL: 29.67% & FCIL/HFCI (combined):10.99% to set up natural-gas based 1.27 MTPA urea plant at the premises of closed fertilizer plants of FCIL at Gorakhpur (U.P.) & Sindri (Jharkhand) and that of HFCL at Barauni (Bihar).

The three plants are being set up at a total estimated cost of around Rs. 22,000 crore which is being financed by a debt-equity structure of 75:25. Financial closure for the entire loan amount has been achieved through a consortium of banks led by State Bank of India as Prime Lender. Subsequently, contracts were awarded to the respective successful bidders for setting up of the three plants on Lump-Sum Turn Key (LSTK) basis. Currently, construction works of all three projects are on track and the urea production is expected to commence in the beginning of 2021.

(B) Setting up of coal based ammonia-urea complex at Talcher

A Joint Venture Company named Talcher Fertilizers Limited (TFL) comprising of RCF, CIL, GAIL and FCIL has been constituted with the following shareholding pattern:

CIL: 29.67%, RCF: 29.67%, GAIL: 29.67% & FCIL:10.99% to set up a Surface Coal Gasification based integrated fertilizer complex using coal from nearby Talcher coalfields. Coal blended with pet-coke upto 25% shall be gasified to produce syngas, which shall be converted into Ammonia and subsequently to 1.27 Million Tonnes of neem coated Urea annually.

TFL Board approved coal gasification technology of M/s Air Products (earlier M/s Shell) for the proposed plant. Policy for dispensation of subsidy to coal gasification based urea plants is under progress at NITI Aayog. Meanwhile, Dept. of Fertilizers, GOI has issued a Comfort Letter assuring that policy for payment of subsidy for the urea produced through coal gasification route will provide suitable support for ensuring 12% post-tax project IRR.

Hon’ble Prime Minister of India has laid the Foundation Stone of the plant at Talcher on 22.09.2018.

M/s Projects & Development India Limited (PDIL) is the Project Management Consultant (PMC) for this project. The project is being implemented on partial Lump Sum Turn Key (LSTK) basis. LSTK tenders for major plants (Coal Gasification& Ammonia-Urea) are under evaluation. NIT for Captive Power Plant and other Off-sites &Utilities are under preparation by the Consultant. Currently, all pre-project works such as Commissioning of Water System, Supply-cum-Erection for Power Works, Land Development etc. are progressing in full swing.

Ministry of Coal has allotted 50% of North of Arkhapal-Srirampur (Northern Part) coal block to TFL. Detailed Exploration, Preparation of Geological Report, Preparation of Mining Plan & Project Report for allotted Coal Block is in progress by CMPDI.

III. DIVERSIFICATION IN COAL TO CHEMICAL SECTOR:

(A) Setting up of Coal to Methanol plant at Dankuni Coal Complex (DCC)

In pursuance to initiatives towards development of Clean Coal Technology and alternate use of coal, CIL is exploring the possibilities for setting-up a coal based Methanol plant in the premises of Dankuni Coal Complex (DCC) near Kolkata. Coal sourced from Raniganj coalfields shall be gasified to produce syngas which shall be subsequently converted into methanol. Based on the Capex and Opex data and other technical information provided by potential technology suppliers shortlisted through global EOI, M/s. Project & Development India Ltd. (PDIL) has prepared the Pre-Feasibility Report (PFR) for setting up of a 2050 MTPD (0.676 MTPA) capacity Coal to Methanol plant. The PFR was deliberated by 362nd CIL Board held on 28.04.2018 and the Board agreed in-principle to go ahead with this clean-coal initiative. The Board also accorded approval for engagement of Technical Consultant through tendering for carrying out various Pre-Project activities and Pre-Award Consultancy Services upto preparation of Detailed Feasibility Report(DFR). In compliance of the CIL Board decision, M/s Projects & Development India Limited (PDIL) has been selected as the technical consultant through open e-tendering process.

11. Master Plan for dealing with fire, subsidence and rehabilitation

The Master Plan for dealing with fire, subsidence and rehabilitation in the lease hold of Bharat Coking Coal Limited (BCCL) and Eastern Coalfields Limited (ECL) was approved on 12th August 2009 by Govt. of India with an estimated investment of Rs. 7112.11 crores for Jharia Coalfields and Rs.2661.73 for Raniganj Coalfields. Implementation period has been delineated as 10 years for ECL & 12 years for BCCL. Eighteen (18) High Powered Central Committee (HPCC) meetings were conducted till date, under the chairmanship of the Secretary (Coal), MoC to review the activities of implementation of Master Plan. Jharia Rehabilitation and Development Authority (JRDA) and Asansol Durgapur Development Authority (ADDA) are the implementing agency for rehabilitation of non-BCCL & non ECL people under Master Plan.

A. Summarized Status of Implementations of Raniganj Master Plan (in the leasehold of ECL) are as below:

There are 03 unstable locations under ECL which were already vacated. As per the demographic survey report provided by ADDA, around 30,000 non ECL families are required to be rehabilitated from unstable locations. Total 12,976 flats in 811 Blocks has been proposed in the DPR prepared by Housing Department, Govt. of WB. Construction of 160 flats at Bijojnagarmouza have been started from March, 2017 which schedule to be completed by May 2019. Further, construction of 12,816 flats have been started from March, 2018 .Construction of 372 blocks are in progress till date .

Regarding infrastructure development activity i) ECL has been assigned to CIMFER for stability assessment of rail track in connection of Diversion of Andal -Sitarampur Railway line from unstable location. , ii) For assessment of stability of the area of NH-2 Bye-pass. ECL has been awarded the job to IIT, Kharagpur. Iii) For diversion route of Gorangdih -Begunia colliery, district level purchase committee has been constituted by state govt. to expedite the possibility of acquisition of land at Raiyati .

B. Summarized Status of Implementations of Jharia Master Plan (In the leasehold of BCCL).

As per Master Plan, total of 54,159 families in 595 sites which are to be surveyed, have completed survey of 595 sites for 91,879 families of encroachers by CIMFR, ISM, whiz Mantra and JRDA. Total 7,639 houses have been constructed out of 15,852 houses for rehabilitation of BCCL families, in which 3,878 families have been shifted till March 2019. Remaining 8,213 houses are in different stages of construction.

For rehabilitation of non BCCL families, 6,352 houses have been constructed by JRDA out of 10,352 houses in which 3,075 families have been shifted. Balance 4,000 houses are under different stages of construction. Regarding Status of fire dealing, NRSC has been submitted study report, where the surface fire area has been reported as 3.28 Sq km, against the earlier 8.9 sq km mentioned in the Master Plan.

12 ENVIRONMENTAL MANAGEMENT

12.1 Management System Standards

CIL HQ has obtained certification against ISO 9001, 14001 and 50001 (Quality Management, Environment Management and Energy Management System) from Bureau of Indian Standards (BIS). As on 31st March 2019, four of our Subsidiaries, ECL, CCL, NCL and MCL are certified for Integrated Management System (ISO 9001, 14001 and OHSAS 18001). CMPDI HQ and its seven RIs are certified for ISO 9001:2015.

12.2 Pollution Control Measures and their Efficacy

CIL has put utmost importance to protect environment by practicing and following sustainable mining practices right from mine planning stage. Various pollution control measures and initiatives are taken up concurrently with mining operations for maintaining acceptable/permissible limits of major physical and chemical attributes of environment namely air, water, hydrogeology, ground vibrations, noise, land & nearby community.

(A) Air Pollution and its Control Measures:

To control and reduce dust generation during drilling, blasting, loading and Coal transportation, CIL has taken up various initiatives based on the Environmental Management Plan (EMP). This EMP is prepared keeping in mind the impact on existing environment and forest due to coal mining projects through Environment Impact Assessment (EIA) study of each project.

Mist spray systems along conveyor routes, Mobile water sprinkling, automatic sprinklers have been provided to mitigate air pollution & its control measures. Some of the important initiatives taken by CIL like, a) Loading of coal by series of belt conveyors, silo, and transportation by tarpaulin covers trucks and railway wagons, b) Blacktopping, repairing and strengthening of haul roads, c) Development of wind break and vertical greenery system, d) Introduction of Surface Miners and Continuous Miners in opencast & U/G mine respectively.

(B) Mine Water Management:

Mine Discharge Treatment Plants (MDTP) are installed in mines for treatment of mine water which is pumped out on surface for second phase treatment. Treated mine water is then used partly within the mine premises for dust suppression, firefighting, plantation, washing etc. As per need of the community, a part of remaining treated mine water is supplied to the nearby villages for drinking & irrigation purpose.

In order to assess the impact of mining activities on ground water, quarterly monitoring of ground water levels is being carried out in and around of the mine lease hold area. For ground water recharge within mine premises and nearby villages, initiatives like rainwater harvesting, digging of ponds/development of lagoons, de-silting of existing ponds/tanks etc have been taken .

Regular monitoring of mine, workshop and domestic effluent is carried out as per rule. Reports of the same are regularly submitted to SPCBs and MoEF&CC.

(C) Noise Pollution Control Measure:

For control of noise pollution, various measures are adopted like Proper maintenance of equipment, Green belt development around the mine and residential area, blasting in only day time and use of ear muff / ear plugs at noisy areas.

(D) Land Reclamation:

Reclamation of the mined out areas and the external OB dumps are major environmental migratory activities taken up by CIL. Reclamation of mined out areas are being done as per the Environmental Management Plan (EMP) and Mine Closure Plan (MCP) which are approved by MoEF&CC. Top soil preservation, storing and use in the plantation areas are being done in the opencast mines. Concurrently reclamation and rehabilitation of mined out areas are taken up for gainful land use. After technical reclamation is completed, plantation is carried out which is termed as biological reclamation.

- Eco-restoration: For effective Bio- reclamation of disturbed land, scientific studies are carried out to select suitable species of plants for each coalfield and sustainable sequence of reclamation from grass to shrubs, to trees are being done. Forest Research Institute (FRI) have been engaged by CIL for sharing their expertise in the field of eco-restoration in the reclaimed areas. ECO restoration sites have been developed in BCCL, with technical guidance of FRI.

- Eco-park in Reclaimed land: Eco Parks have been developed in many of the mined out areas of CIL like Gunjan Park of ECL, AnanyaVatika of SECL, Nigahi of NCL, Saoner of WCL, KayakalpVatika, Rajarappa Eco Park in CCL etc.

- Monitoring of Reclamation: The land reclamation and rehabilitation operations are being monitored by Satellite Surveillance. 52 major OCPs excavating more than 5 Mm3 (Coal OB) per annum are being monitored every year while remaining OCPs, excavating less than 5 Mm3 (Coal OB) per annum, are being monitored every 3rd year. The study during 2018-19 shows that, in 52 major OCPs have reclaimed area of 62.95% and active mining area is only 37.05% of the total excavated area. In addition, CIL is conducting vegetation cover mapping through satellite surveillance in every 3 years.

- Mine Closure Plan (MCP): MCP is an integral part of the project report prepared by CMPDIL for Coal mines. This progressive mine closure plan also forms a part of the EIA/EMP prepared and submitted to MOEF&CC for Environmental Clearance. As on 31st March, 2019, Rs. 557.52 Crores have been reimbursed from the Escrow fund and balance of Rs. 6678.63 Crores have been deposited in the 455 Escrow accounts.

(E) Strive for continual improvement in environmental performance.

CIL has completed third party environmental audit of 20 OC mines of CIL by engaging Indian Council of Forestry Research & Education (ICFRE), Dehradun.

13. INFORMATION AND COMMUNICATION TECHNOLOGY IN CIL

CIL and its subsidiaries have undertaken the following key IT initiatives as on date:

1. Coal India has taken up implementation of ERP at CIL, MCL & WCL in the 1st phase.

2. To benefit its regular customers, as well as Power Sector Customers CIL has introduced mobile App like “SEVA” (Saral Eendhan Vitaran App) and “GSKV”(Grahak Sadak Koyla Vitaran).

3. CIL has also introduced mobile App “Uttam” for monitoring Coal Quality by its customers, “Khanan Prahari” to check illegal coal mining, “E-Awas” to manage quarter allotment, maintenance & prevent illegal occupancies, “Coyla” (Coal Yield Analysis) app to monitor production and dispatch data of all mines.

4. ”CLIP” Contract Labour Information portal has been launched by CIL to keep an eye on fair wage payment to Contractor workers deployed at various locations.

5. ”MDMS” (Mine Data Management System) portal has been designed and launched by Project Monitoring Division of CIL and CMPDI, Ranchi to store all the salient features of PR and data of ongoing projects and their performance against PR provision.

6. CIL Executive defined contributory Pension Scheme 2007 of all CIL executives is managed through an on-line Web Application.

7. CIL Asset data capture is being carried out through an on-line Web Application.

8. As a significant contribution towards “Digital Green India”, E-office solution from NIC has been implemented in CIL and its subsidiaries to ensure paperless office.

9. Under the project “DDMA”(Document Digitization and Archival Management) Coal India Ltd. has digitized more than 80 Lakhs documents at its Corporate Hq.

10. Biometric attendance system has been introduced in CIL and its subsidiaries.

11. Existing operational IT initiatives of Coal India include:

- Procurement of Goods, Works and Services in Coal India and its subsidiary companies above Rs 2 lakh value is being done through E-procurement mode whereas tenders above Rs 1 Crore value are finalised through e-Tender mode with provision of reverse auction in Coal India to ensure greater transparency and better cost effectiveness during tender procedures in goods, works and services.

- E-auction of coal is operational through service providers of CIL.

- Performance Evaluation, Vigilance Information and Annual Property Return of executives in Coal India is carried out through web enabled systems. Web Applications for Production Information System, Safety Information System, CIL-CSR, HRMS are also in operation.

- Next Gen Firewall systems has been inducted to augment the LAN immunity against external breach.

- Leveraging technology in the area of Production and Dispatch through various IT initiatives viz GPS Based Vehicle Tracking Systems, GPS-GPRS Based route marking, RFID Based Vehicle authentication Systems, Boom barrier based automatic Gate control System and CCTV based monitoring system have been installed at various Rail/Road weighbridge, Entry-Exit Gates of collieries, Railway-Sidings, Coal-Heaps, workshops, Stores. As of now, more than 800 such integrated installations at various subsidiaries are in operation.

- Apart from Colliery to Area and Area to Subsidiary HQ recently a 3rd level of CCTV Monitoring Centre has been set-up at CIL Kolkata encompassing the surveillance reach to a more wider periphery of Coalfield Areas spread over various subsidiary companies.

- CIL has obtained recertification of its Data Centre for being compliant to Rated 3 standards.

- CIL is operating Operator Independent Truck Dispatch (OITDS) with high speed Data and Voice communications in 11 big Opencast Mines to ensure optimal usage of shovel, Dumpers and associated HEMM to curtail loss of time, fuel and manpower to enhance production and productivity of the mines.

- CIL successfully accomplishes every day a sizable number of in-house Video conferencing sessions involving all its Subsidiaries, MoC, other PSUs, Railways, Power Sector other Govt Organisations as per the schedule with recording facility as an important feature of its office automation. Additional VC room at all Subsidiaries are available for simultaneous multiple VC sessions amongst CIL HQ, Subsidiaries and other location across the globe.

- In order to improve coal dispatch, electronic weighbridges are connected with Central Servers of respective subsidiaries and initiatives have been taken up for implementing online generation of Challans/invoices.

- State-of-the-art IP based EPABX with support of convergent technology for voice and data, Radio communication System and UG communication system at different locations of Coal India and its subsidiary companies are operational in order to meet the business process requirements.

14. MINES SAFETY

14.1: Statutory Frame-work for safety in coal mines:

Coal mining, world over, is highly regulated industry due to presence of several inherent, operational and occupational hazards and associated risks. Coal Mine Safety Legislation in India is one of the most comprehensive and pervasive statutory framework for ensuring occupational health and safety (OHS). Compliance of these safety statutes is mandatory.

In India, the operations in coalmines are regulated by the Mines Act- 1952, Mines Rules -1955, Coal Mines Regulations-2017 and several other statutes framed there under. Directorate-General of Mines Safety (DGMS) under the Union Ministry of Labour & Employment (MOL&E) administers these statutes. Other major Act/Rule are applicable in coal mines are the Electricity Act- 2003, Central Electricity Authority (measures rel. to safety & supply) Regulations - 2010 ,Indian Explosive Act-1884 & Explosive Rules - 2008, Indian Boiler Act -1923, the Employee’s Compensation (Amendment)Act-2017 and the Factories Act - 1948 Chapter -III & IV.

14.2: Safety Policy of CIL:

To implement CIL Safety Policy, the following are provided:

1. Provision of adequate funds for mine safety.

2. Deployment of adequate numbers of trained manpower for ensuring safety in mining operations.

3. A well-structured and multi-disciplinary Internal Safety Organization (ISO) established in all the subsidiaries of CIL to monitor implementation of CIL’s Safety Policy.

4. Continuous and sustained improvement in technological inputs for mining operation.

5. Support of scientific planning and R&D activities made available through using in-house expertise of CMPDIL and in collaboration with the other scientific agencies and reputed educational institutes.

6. Ensuring workers’ participation in every forum for monitoring safety in mines.

14.3: Accident Statistics

Analysis of Accident Statistics in CIL - Accident statistics is the relative indicator for safety status in mines. Over the years, the safety performance of CIL has improved significantly.

This improvement in mine safety in CIL is attributed to the following contributing factors:

- Collective commitment and synergetic collaboration of the Management, Employees, the regulator (DGMS) and Trade Unions.

- Use of state-of-the-art technology in the field of Mining Methods, Mining Machineries and Safety Monitoring Mechanism.

- Continuous improvement in knowledge, skill and responsiveness of workforce through imparting excellence safety training and persistent safety awareness drives.

- Constant vigil, round-the-clock supervision and supports from various agencies.

Salient features of continuous and sustained improvement in CIL’s safety performance is disclosed in following graphical representation and also in Annexure-15.

14.4: Measures for improvement of Mine Safety in 2018

CIL has vigorously pursued several measures in the year 2018, along with, the on-going safety related initiatives, apart from compliance of statutory requirements for enhancing safety standard in mines of CIL and its Subsidiaries, which are given below:

a) Principal Hazards Management Plans (PHMPs)

b) Safety Management Plans (SMPs)

c) Standard Operating Procedures (SOPs)

d) Safety audit of all mines

e) Conducting Special Safety Drives on different Safety Issues

f) Participation in International Mines Rescue Competition (IMRC) 2018 held at Yekaterinburg, Russia and awarded “Most Active Team” Award in (IMRC) 2018.

g) Observation of “ILO’s World Day for Safety and Health at Work” in CIL (HQ) as well as all subsidiary HQs, Areas and mines.

h) Foreign Technical Training Programme in China on “Coal Mine Safety Management for CIL Executives and Exposure to Best Practices in China”.

i) The 17th meeting of the National Dust Prevention Committee (NDPC) was held on 6th September, 2018 in Kolkata.

Apart from the above specific actions, the following are on-going measures for improving safety standards:

1. Emphasis on adoption of the state-of-the art technology in suitable geo-mining locales.

2. Adoption of the state-of-the art mechanism for Strata Management

3. Mechanism for monitoring of mine environment

4. Strengthening Water Danger Management

5. Training on Mine Safety & Skill Upgradation

15 MINE EMERGENCY RESPONSE SYSTEM

15.1 Emergency Plan

Emergency Action Plans has been prepared which includes

- Mock Rehearsals

- Demarcating Emergency Escape Routes in below ground.

- Check list prepared to deal emergency in mine.

- Flow Chart prepared to deal crisis.

15.2 Mine Rescue Services in CIL: CIL is maintaining a well-established Rescue Organization .

16 HUMAN RESOURCE DEVELOPMENT

Human Resource is at the centre of Coal India’s pursuit to achieve the targeted coal production. During 2018-19, different training programs were organized at subsidiary Headquarters, Training Centres, Vocational Training Centre and also at CIL’s own in-house training facility-Indian Institute of Coal Management, Ranchi. These training programs were organized after accessing the training needs in the respective category of employees within the subsidiary.

16.1 Training and Development of Human Resource:

In FY 2018-19, a total of 1,07,077 employees of CIL & its subsidiaries have been trained in house including 14,526 executives. In addition, 5467 employees have been trained in premier institute like IITs, IIM etc which includes 4,611 executives.

In order to develop Human Resource to meet the challenges of future, 6,24,815 man-days of training were achieved for upgrading employee’s knowledge and skill. The total training man-days at CIL registered a growth of 3.73% over last year. In addition, a total of 46378 contract workers were also trained in the financial year.

16.2 Special Initiatives :

- Ten executives were sponsored for a nine-day training program on Mine Safety which was held in Henan polytechnic university, China.

- Two executives attended a three-week training program on Seismic vibrator which was held in France.

- Ten executives attended a certified course on Project Management and secured the Team Excellence Award amongst 34 teams.

16.3 Engagement of Apprentices:

During the year 2018-19, CIL and its subsidiaries engaged a total of 7606 apprentices vis-a-vis 2813 apprentices in FY 17-18 through NATS and NAPS portals.

17 RECRUITMENT

During the financial year 2018-19, CIL has inducted Management Trainees & Medical Executives through direct recruitment to fill up the vacancies. The details of Executive manpower influx in CIL for F.Y. 2018-19 are as follows:

Designation (Grade)

Nos. appointed

Management Trainee (E2 Grade)

224

Medical Specialist (E3 / E4 Grade)

97

Sr. Medical Officer (E3 Grade)

72

Sr. Officer (Mining) (E2 Grade)

175

Total

568

With the recruitment of 169 Medical Executives, the strength of Doctors in the company has increased by 17% (approx.). Similarly, with the promotion / appointment of 175 Statutory Personnel in Executive cadre in Mining discipline, the strength of Statutory posts is increased by 3.5% (approx.).

18. MANPOWER

18.1 The total manpower of the Company including its subsidiaries as on 01.04.2019 stood at 2,85,479 against 2,98,757 as on 01.04.2018. A detailed Subsidiary wise position of Manpower is given in Annexure 16.

18.2 The presidential directives with respect to manpower for Scheduled Caste/Scheduled Tribes/OBC have been implemented in all the subsidiaries/units of Coal India Limited.

The representation of SC/ST employees in total manpower of CIL and its Subsidiary Companies as on 01.01.2017, 01.01.2018 and01.01.2019 is given below: -

As on

Total Manpower

Scheduled Caste

Scheduled Tribe

Nos.

Percentage

Nos.

Percentage

1.1.2017

313809

70513

22.47

39721

12.66

1.1.2018

302006

57761

19.13

41373

13.70

1.1.2019

288687

54578

18.91

43560

15.09

19. INDUSTRIAL RELATIONS AND EMPLOYEES’ PARTICIPATION IN MANAGEMENT

The Industrial Relations scenario in CIL & its subsidiaries during the financial year remained cordial. Joint Consultative Committees and other Bipartite Committees at Unit/Area levels and Subsidiary (HQ) levels continued to function in harmony. Meetings of Bilateral Committees were held at regular intervals at CIL to address IR, Welfare, Productivity/Production, Safety etc. issues. Except for few minor issues of local nature at a few subsidiaries, there has been no major IR problem in the company.

20. EMPLOYEES’ WELFARE AND SOCIAL SECURITY SCHEMES

The Welfare activities of Coal India Limited for welfare of its employees and their families are given below:

20.1 Housing facilities

- The ceiling of House Building Advance amount has been increased from Rs.2.5 lakh to Rs.30 lakhs per employee subsuming the advance amount under CIL Furniture and Household Goods Purchase Scheme.

- CIL Furniture and Household Goods Purchase Scheme has been formulated under which recoverable advance to an employee is available for purchases as per their eligibility ranging from Rs.2 lakhs to Rs.5 lakhs.

20.2 Water supply

Supply of water is done after proper treatment and several RO plants are also existing to cater to the needs of residential colonies of the company.

20.3 Educational Facilities

The subsidiary companies of CIL have been providing financial assistance and infrastructure facilities to schools operating in mining areas like DAV, KendriyaVidyalaya, Delhi Public School and other educational institutions run by the State Government to provide quality education to the employees’ children. Through Scholarship Schemes, Cash Awards and Certificates of Appreciation, meritorious wards of employees are recognized for higher academic performance.

20.4 Medical Facilities

CIL is extending medical facilities to the employees and their families through various medical establishments from the dispensary level to the Central and Apex hospitals in different parts of the coalfields. For specialized treatment, where the expertise/ facilities is not available, they are also referred for treatment outside in the empanelled hospitals.

20.5 Statutory Welfare Facilities

In accordance with the provision of the Mines Act, 1952 and Rules and Regulations framed there-under, subsidiaries of Coal India Limited are maintaining various statutory welfare facilities for the coal mines such as Canteen, Rest Shelters etc.

20.6 Non-Statutory Welfare Measures

Various measures are taken to improve the quality of life of employees by encouraging them to form and run Co-operative Stores/ Credit Societies, bringing banking facilities closer to their residential colonies and providing various sports facilities as well as presence of Holiday Homes in 6 cities of country.

20.7 Empowerment of Women

- As on 01.04.2019, 19,779 female employees were working in CIL and its subsidiaries. The Forum of Women in Public Sector (WIPS) was established under the aegis of Standing Conference of Public Enterprises (SCOPE) on 12th February, 1990 which came into existence at CIL in the same year to empower women employees for working efficiently. As warranted under Prevention of Sexual Harassment Act, suitable mechanisms are in place to address such issues.

- The company, in addition to maternity benefits provided under the Maternity Benefit Act, 1961, provides 730 days of Child Care Leave to women employees, subject to other conditions as stipulated in the policy.

21 TREE PLANTATION / AFFORESTATION

Plantation and Green belt are developed through extensive tree plantation programme every year by the Subsidiaries of CIL. Avenue plantation, plantation on the OB dumps, plantation in and around mines, residential colonies, and available government land are undertaken in the existing as well as the new projects. The subsidiaries of CIL have planted around 18.1 lakh saplings during 2018-19 in an area covering 733 Ha.

22 PROGRESSIVE USE OF HINDI

22.1 Coal India Limited is committed to implement the provisions of the Official Languages Act, Rules and Regulations and all activities are held regularly. During FY 18-19, the company has achieved the mandated usage of Hindi language as per the provisions of the Act.

22.2 Following awards were conferred upon CIL by various Government organisations:

- 1st Prize of TOLIC (PSUs), Kolkata: Under the Rajbhasha Award Scheme of the Govt. of India.

- Active Participation Award awarded by His Excellency Shri Kesari NathTripathi, the Governor of West Bengal.

23. VIGILANCE SETUP

The anti-corruption activities in CIL and its Subsidiary Companies have been institutionalized by setting up Vigilance Departments headed by a Chief Vigilance Officer (CVO), appointed by the Govt. of India in consultation with Central Vigilance Commission (CVC) on tenure basis, drawn from various government services.

During the year 2018-19, 44 Intensive Examination of Works/Contracts(Major works) were undertaken by CIL(HQ) and its subsidiary companies. In addition,288 Surprise checks were carried out. Besides, 92Departmental Inquiries were disposed of which resulted in punitive action against 148 officials. Such examinations/investigations have resulted into initiation of various system improvement measures.

In accordance with the directives of the Central Vigilance Commission, the Vigilance Awareness Week was observed in Coal India Limited, IICM-Ranchi, North Eastern Coalfields-Margherita& Regional Sales Offices across the country w.e.f. 29.10.18 to 03.11.18 emphasizing the theme of this year for Vigilance Awareness Week “Eradicate Corruption: Build a New India”.

Vigilance Awareness Week was observed by organizing various activities in order to generate awareness, educate and discuss transparency among officials /stake holders as well as general public to arrest the root cause & threat of corruption, to promote good governance and envisage the theme of this year. The activities were organized both in-house and as outreach programs in Schools/Colleges, across Kolkata, in Ranchi, in Margherita, Assam and also as Gram Sabha in different districts of West Bengal and NEC Projects, focusing this year’s theme of Vigilance Awareness Week.

Implemented Preventive Vigilance/ System Improvement

i) SOP has been issued clearing specifying the role and responsibility of different level of executives for implementation of IT initiatives.

ii) Suggestion has been given to management to issue guidelines for including/ excluding GST for evaluation of BID sin tender.

System Improvement Studies - Studies were taken in following areas :-

Sl.

Subject of Study

1

Measurement of OB and Coal in outsourced patches

2

CSR Policy of CIL and monitoring of projects.

3

E-surveillance through VTS, CCTV, Weigh-Bridge connectivity, RFID & other IT initiatives.

4

Implementation of Bill tracking system.

5

Complaint handling System.

6

Procurement policy at CIL & subsidiaries and Standardization of NITs and modification of Purchase Manual.

7

Recruitment process in CIL & subsidiaries.

8

Policy for compassionate appointment of medical unfit cases.

24 PARTICULARS OF EMPLOYEES

Employee received remuneration either equal to or in excess of the limits prescribed under Rule 5(2) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 during 2018-19 is given in Annexure 17. Details of Rule 5(1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 on disclosure in the Board Report with reference to remuneration of Managerial Personnel of Top 10 employees are annexed to the Report.

25. BOARD OF DIRECTORS

Shri Anil Kumar Jha was appointed as Chairman cum Managing Director (CMD) w.e.f. 18.05.2018 (A/N). Shri Suresh Kumar, Addl. Secretary, MoC was holding an Additional Charge of CMD from 23.04.18 till 18.05.18 and Shri Gopal Singh, CMD,CCL was holding an Additional Charge of CMD from 01.09.17 till 20.04.2018. Shri S.N.Prasad, Director (Marketing), Shri Binay Dayal Director (Technical) and Shri R.P. Srivastava Director (P &IR) were on the Board throughout the year. On superannuation, Shri C.K. Dey Director (Finance) ceased to be Director (Finance) w.e.f 01.10.18 and Shri S.N.Prasad, Director (Marketing) was given an additional charge as Director (Finance) from that date and he continued till 9th JulyRs. 2019. Shri Sanjiv Soni has assumed the charge of Director (Finance), CIL from 10th JulyRs. 2019 .

Shri R.K.Sinha, Joint Secretary, MoC, Mrs Reena Sinha Puri, JS &FA, MOC were on the Board throughout the year as Government Nominee Directors.

Ms. Loretta Mary Vas, Dr S.B. Agnihotri, Dr D.C. Panigrahi, Dr. Khanindra Pathak and Shri Vinod Jain were appointed as Independent Directors on the Board on 17.11.15 for a period of 3 years. On expiry of their term, all the 5 directors ceased to be Independent Directors w.e.f. 16th NovRs.18. They were re-appointed as Independent Directors w.e.f 17th NovRs.18 for a period of one year. Shri V.K.Thakral and Shri B.L.Gajipara were Independent Directors on the Board throughout the year.

Shri R.R. Mishra, CMD, WCL and Shri S. Saran, CMD, CMPDIL continued throughout the year as permanent invitees. Shri Anurag Addl. Member (Traffic transportation), Railway Board was permanent Invitee from 19th JunRs.18 .

Your Directors wish to place on record their deep sense of appreciation for the valuable guidance and services rendered by the directors during their tenure, who ceased to be the Directors during the year.

In terms of Article 39(j) of the Articles of Association of the Company, one third of retiring Directors are liable to retire by rotation shall retire at the ensuing Annual General Meeting and they are eligible for reappointment.

The Board of Directors held 21 meetings during the year 2018-19.

26. Composition of Audit Committee

CIL in pursuance of excellence in corporate governance formed an Audit Committee of its Board of Directors w.e.f. 20-07-2001 and the present Audit Committee was re-constituted by the Board in its 376th meeting held on 30th NovRs.18 consists of four Independent Directors, one Government Nominee, one Functional Director, one Invitee and one permanent invitee.. Details are disclosed in Corporate Governance Report under point number 3.1.

27. Composition of CSR Committee

Details are disclosed in Corporate Governance Report under point number 3.6.

28. Declaration given by independent directors under sub-section (6) of Section 149.

The following independent directors have given their consent during 2018-19 that they meet the criteria of independence as stipulated in subsection (6) of Section 149 of the Companies Act 2013.

i. Ms. Loretta M Vas

ii. Dr. S.B.Agnihotri

iii. Dr. D.C.Panigarhi

iv. Prof. Khanindra Pathak

v. Shri Vinod Jain

vi. Shri V.K.Thakral

vii. Shri B.L.Gajipara

Further as required under Section 149(7) of the Companies ActRs.13 and Regulations 25(8) of SEBI (LODR) Regulations 2015 as amended, all the Seven (7) Independent Directors have submitted declaration that he/she meets the Independence Criteria as provided in Clause (b) of Regulation 16(i) of LODR 2015 and they are not aware of any circumstance or situation, which exist or may be reasonably anticipated that could impair or impact his/her ability to discharge duties with an objective independent judgment and without any external influence. Further as required under Regulation 25(9) of LODR 2015 as amended, the Board of Directors of the Company took on record the declaration and confirmation submitted by the Independent Director under Regulations 25(8) after undertaking due assessment of the veracity of the same.

29. Reappointment of Independent Directors- Section 149(10)

Ms. Loretta Mary Vas, Dr S.B. Agnihotri, Dr D.C. Panigrahi, Dr. Khanindra Pathak and Shri Vinod Jain were appointed as Independent Directors on the Board on 17.11.15 for a period of three years. On expiry of their term all the 5 Directors ceased to be Independent Directors w.e.f. 16th NovRs.18. They were re-appointed as Independent Directors w.e.f 17th NovRs.18 for a period of one year.

30 Recommendation of Audit Committee by the Board.

All the recommendations made by Audit Committee were accepted by the Board.

31. Company’s policy on directors ‘appointment and remuneration including criteria for determining qualifications, positive attributes, independence of a director and other matters provided under sub-section (3) of section 178.

MCA vide Notification dated 5th JuneRs.2015 has exempted the above for Government companies.

32. Remuneration policy of directors, KMPs and Senior Management - Section 178(4).

MCA vide Notification dated 5th JuneRs.2015 has exempted the above for directors of Government companies.

33. A statement indicating the manner in which formal annual evaluation has been made by the Board of its own performance and that of its committees and individual directors.

MCA vide notification dated 5th JulyRs. 2017 has exempted evaluation mechanism for Govt. Companies. However, Company has prepared a policy for formal annual evaluation of Independent Directors, Board, Committees of the Board, Executive Directors and Non Executive Directors and got it approved by Board in its 385th meeting held on 30th MayRs.19.

34. Contracts or Arrangements with Related Parties

Related party transactions made with the subsidiary companies and that all such transactions were exempted under Regulation 23(5)(a) and (b) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 being transactions between two government companies and transactions entered between a holding and its wholly owned subsidiaries whose accounts are consolidated with holding company and placed before the shareholders at the general meeting for approval. However, the remuneration paid to Key Managerial Personnel is being disclosed separately in point no VI of Annexure 18.

35. Loan, guarantees or investments by a company under section 186 of the Act

Loan, guarantees and investments made by Coal India Limited in terms of Section 186 of the Companies Act 2013 is enclosed in Annexure 19.

36. Familiarization programme of Board Members.

Board of Directors are fully briefed on all business related matters, associated risk, new initiatives etc. of the company. The Board of directors were also briefed about the provisions of Companies Act 2013, Prohibition of Insider Trading Regulations, 2015 as emended and SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015. As per Regulation 25 of SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015, the listed entity shall familiarize Independent Directors through various programmes about the listed entity, including the following:

(a) Nature of the industry in which the listed entity operates;

(b) Business model of the listed entity;

(c) Roles, rights, responsibilities of Independent Directors; and

(d) Any other relevant information.

As per regulation 46 of SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015 the details of the familiarization programmes given to Independent Directors is to be disclosed on the website of the company. The same is disclosed on company’s website. And link is given hereunder:-

https://www.coalindia.in/DesktopModules/DocumentList/documents/Familiarization%20Programmes%20imparted% 20to%20Independent% 20Directors%20for%202018-19%20and%20cumulative%20till%20date.pdf

37. Sexual Harassment of Women at the Workplace

The company has in place an Anti-Sexual Harassment Policy in line with the requirements of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints Committee (ICC) are working at every subsidiary and office of Coal India Limited to redress complaints regarding sexual harassment. All women employees (permanent, contractual, temporary, trainees) are covered under the said policy.

No sexual harassment complaint was received during the year 2018-19.

38. DIRECTORS’ RESPONSIBILITY STATEMENT

In terms of Section 134(3)(c) of the Companies Act, 2013, read with the Significant Accounting Policies at Note-2 and Additional Notes on Accounts at Note-38 forming part of:

1. CIL (Standalone) Accounts

2. CIL (Consolidated) Accounts

It is confirmed that:

a) In the preparation of the Annual Accounts, the applicable Accounting Standards have been followed and that no material departures have been made from the same;

b) The Accounting Policies have been selected and applied consistently and judgements and estimates made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and profit & loss of the company for that period;

c) Proper and sufficient care have been taken for maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) The Annual Accounts have been prepared on a going concern basis;

e) Internal Financial Controls have been laid down and that such controls are adequate and were operating effectively during the year ended 31stMarchRs.2019.

f) Proper systems have been devised to ensure compliance with the provisions of all applicable laws and such systems were adequate and operating effectively.

For CIL (Consolidated) Accounts, such confirmation is based on confirmation obtained from eight Indian subsidiaries of CIL viz: Eastern Coalfields Limited, Bharat Coking Coal Limited, Central Coalfields Limited(consolidated), Northern Coalfields Limited, Western Coalfields Limited, Mahanadi Coalfields Limited (consolidated), South Eastern Coalfields Limited (consolidated) and Central Mine Planning & Design Institute Limited. However, for the overseas subsidiary viz. Coal India Africana Limitada, which was incorporated under Mozambique Commercial Code and for Joint Ventures viz. International Coal Ventures Private Limited, NTPC Urja Private Limited, Hindustan Urvarak & Rasayan Limited and Talcher Fertilizers Limited where CIL is not the majority shareholder, such confirmation have not been obtained.

39. ACCOUNTS OF THE SUBSIDIARIES

The statement containing the salient features of the financial statements of a company’s subsidiaries, associate companies and joint ventures under the first proviso to sub-section(3) of section 129 of Companies Act,2013 is enclosed as AOC 1 in Annexure 20. In terms of General Circular No.2/ 2011 dated 8th Feb 2011 from Ministry of Corporate Affairs, the Annual Accounts of the subsidiary companies shall be made available to the shareholders on demand.

40. COST AUDIT

M/s Balwinder Singh & Associates conducted the Cost Audit of your company for the year 2017-18 and the Cost Audit Report was approved by the Board of Directors in their 372nd meeting held on 25th Sep 2018. The Cost Audit Report did not contain any adverse observation/comment or qualification from the Cost Auditor. The above report was filed in XBRL mode with MCA on 27th September 2018.

Balwinder & Associates was reappointed as Cost auditor for CIL Standalone for the year 2018-19. E-form CRA-2 has been filed with MCA portal vide SRN H16189615 dated 27.09.2018.

41. SECRETARIAL AUDIT

In pursuance to Section 204 of Companies Act 2013, company had conducted Secretarial Audit for the year 2018-19 by a practicing Company Secretary M/s Vinod Kothari & Co, Practising Company Secretaries. Their appointment was approved in the 379th CIL Board meeting held on 12th FebRs.19. Company has obtained an ‘Unqualified Report’ without any matter of Emphasis and same is enclosed in Annexure 21. In addition CIL has 6 Material Unlisted Subsidiaries and their Secretarial Audit Report along with Observation and management Reply are also annexed as per Regulation 24A of LODR 2015. As per SEBI circular dated 08-02-2019 Practicing Company Secretaries conducted compliance of SEBI laws and same was filed with Stock Exchanges on 30th May, 2019.

42. RISK MANAGEMENT POLICY

CIL has approved Risk Management Charter and Risk Register to build up a strong Risk Management Culture within CIL in achieving company’s goals and objectives. The entity level Risk Assessment includes:

i) Strategic Risk.

ii) Operational Risk.

iii) Financial Risk.

iv) Compliance Risk.

v) Project Related Risk.

vi) Support System Risk.

As per the Risk Register, different risks have been identified for CIL & its Subsidiaries, Risk Owner & Risk Mitigation Plan Owner have also been nominated for each risk identified to ensure continuous monitoring and mitigation thereof.

A Consultant was engaged for implementation of the governance process envisaged in the Risk Management Framework, including facilitation for formulation of Risk Mitigation plans for the Prioritized Risks of CIL. The Agency has completed Updated Risk Register, Prioritization of Risk, Risk that Matters along with Mitigation measures of the Risk that Matters.

The Consultant has submitted its final report to CIL for implementation.

43. WEBLINK

The following policies may be accessed on the Company’s website as under:-

1. Corporate Social Responsibility Policy: https://www.coalindia.in/DesktopModules/DocumentList/documents/CIL_CSR_Policy_New_Companies_Act_2013_05022016.pdf

2. Vigil Mechanism:

https://www.coalindia.in/DesktopModules/DocumentList/documents/Office_Order_No.57_dt_08092011_-_Coal_ India_ Whistle_ Blower_ Policy_2011.pdf

3. Policy for determining Material Subsidiary: https://www.coalindia.in/DesktopModules/DocumentList/documents/POLICY_ FOR_ DETERMINING_ MATERIAL_ SUBSIDIARIES_ 21032015.pdf

4. Related Party Transaction Policy: https://www.coalindia.in/DesktopModules/DocumentList/documents/Related_Party_Transaction_Policy’_01122014(1).PDF

5. Policy on determination of Materiality under SEBI(LODR) Regulations,2015 https://www.coalindia.in/DesktopModules/DocumentList/documents/Policy_ on_ determination_ of%20_ Materiality_ under_SEBI_ LODR_% 20Regulations_2015_03042017.PDF

6. Policy on Preservation of documents including Archival Policy under SEBI(LODR) Regulations 2015 https://www.coalindia.in/DesktopModules/DocumentList/documents/Policy_ on_Preservation_of_ documents_including_Archival_ Policy_under_SEBI_LODR_Regulations_2015_17052017.pdf

7. Dividend Distribution Policy under SEBI (LODR) Regulations 2015 https://www.coalindia.in/DesktopModules/DocumentList/documents/Dividend_ Distribution_ policy_of_Coal_ India_ Limited_ 25102017.pdf

44. COMPANY CONFIRMS THE FOLLOWING:-

1. None of the Directors are disqualified for appointment as per Section 164 of the Companies ActRs.2013.

2. Company has not issued any Equity shares with differential voting rights, Sweat Equity shares and ESOP. However Company has issued shares to Employees of CIL and its Subsidiaries as per the OFS Scheme.

3. Unclaimed Final Dividend 2010-11 and Interim Dividend 2011-12 along with the Shares on which dividend have not been claimed for Seven consecutive years were transferred to IEPF Authority as stipulated in Companies Act 2013.

4. No Statutory, Secretarial, and Cost Auditors had resigned during the year 2018-19.

5. No relative of director was appointed to place of profit.

6. As per Regulation 32(4) of SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015 deviation of Proceeds of Public issue is not applicable to the company.

7. There is no deposit covered under Chapter V of Companies Act 2013.

8. There is no deposit, which is not under compliance of Chapter V of Companies Act 2013.

9. There is no change in the nature of business.

10. No Director is in receipt of any commission from the subsidiary companies in which he is a director.

11. Applicable Secretarial Standards, i.e. SS-1 and SS-2, relating to ‘Meetings of the Board of Directors’ and ‘General Meetings’, respectively, have been duly followed by the Company.

45. ADDITIONAL INFORMATION

1. Details in respect of frauds reported by Auditors under section 143(12) other than those which are reportable to the Central Government. :

No such report of frauds as per Audit Report of Standalone as well as Consolidated Accounts.

2. Material changes and commitments, if any, affecting the financial position of the company which have occurred between the end of the FY and the date of the report :

No such material changes and commitments occurred between the end of the FY and the date of the report which may affect the Standalone as well as consolidated financial position of the company.

3. The names of companies which have become or ceased to be its subsidiaries, joint ventures or associate companies during the year.

On 8th January,2013, MCL had formed a Joint Venture Company namely, Neelanchal Power Transmission Company Private Limited(NTPCPL) with Odisha Power Transmission Company Ltd (OPTCL) having 50:50 equity participation with an objective of carrying out power transmission business in Odisha. As the Company could not start its operation, the name of NTPCPL was struck off by ROC from the Register of Companies w.e.f 28.06.2018 and the Company is dissolved as per Section 248(5) of the Companies Act, 2013

46. EXTRACT OF ANNUAL RETURN :

As per the requirements of section 92(3) of the Companies Act and rules framed hereunder, the extract of Annual Return in form MGT-9 is included as Annexure-18. The same is available in Coal India website www.coalindia.in (under Investor centre, Events and Announcements). The Weblink is given hereunder :

https://www.coalindia.in/DesktopModules/DocumentList/documents/ExtractofAnnulReturn.pdf

47. ACKNOWLEDGEMENT:

The Board of Directors of your Company wishes to record their deep sense of appreciation for the sincere efforts put in by the employees of the Company and Trade Unions. Your Directors also gratefully acknowledges the co-operation, support and guidance extended to the Company by various Ministries of the Government of India in general and Ministry of Coal in particular, besides the State Governments. Your Directors also acknowledge with thanks the assistance and guidance rendered by Statutory Auditors, the Comptroller and Auditor General of India and Registrar of Companies, West Bengal, Secretarial Auditor and Cost Auditor and wishes to place on record their sincere thanks to Consumers for their continued patronage.

48. ADDENDA

The following are annexed:-

i) Pre-tax Profit of CIL & subsidiaries for 2018-19 vis-a-vis 2017-18 (Annexure 1).

ii) Subsidiary wise details of Dividend income of CIL Standalone (Annexure 2).

iii) The comments of the Comptroller and Auditor General of India on Standalone Financial Statements of Coal India Limited (Annexure 3).

iv) Auditors Report on the Standalone Financial Statements for the year ended 31st March, 2019 including Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”) [Annexure 3(A)].

v) The comments of the Comptroller and Auditor General of India on Consolidated Financial Statements of Coal India Limited (Annexure 4).

vi) Auditors Report on the Consolidated Financial Statements for the year ended 31st March, 2019 including Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”) [Annexure 4(A)].

vii) Subsidiary wise Coal Off-take. (Annexure 5)

viii) Sector-wise dispatch of coal & coal products. (Annexure 6)

ix) Subsidiary wise details of Stock of Coal. (Annexure 7)

x) Subsidiary wise details of Trade Receivables. (Annexure 8)

xi) Subsidiary-wise payment of Royalty, Cess, Sales Tax, Stowing Excise Duty, Central Excise Duty, Clean Energy Cess, Entry Tax and Others. (Annexure 9)

xii) Subsidiary-wise Coking & Non-coking production, Production from underground and opencast mines. (Annexure 10)

xiii) Subsidiary-wise Washed Coal (Coking) Production. (Annexure 10A)

xiv) Subsidiary wise Overburden Removal. (Annexure 10B).

xv) Population of equipment. (Annexure 11)

xvi) Subsidiary wise System Capacity Utilization. (Annexure 12).

xvii) Project Implementation. (Annexure 13).

xviii) Subsidiary wise details of Capital Expenditure. (Annexure 14)

xix) Salient features of continuous and sustained improvement in CIL’s safety performance. (Annexure 15)

xx) Subsidiary wise manpower. (Annexure 16)

xxi) Disclosures under Rule 5(1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. (Annexure 17).

xxii) The extract of the annual return as provided under sub-section (3) of Section 92 in Form No. MGT.9 (Annexure 18).

xxiii) Loan and Advances, Guarantees, Investments made by the company under Section 186(4) of the Companies ActRs.2013 (Annexure 19).

xxiv) Statement pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014) as on 31st March, 2019. (Annexure 20).

xxv) Secretarial Audit Report under Section 204 of Companies Act 2013 and Secretarial Audit Report of Material Subsidiaries and Management Explanation. (Annexure 21).

xxvi) Foreign Exchange Earning and Outgo under Rule 8 of Companies (Accounts) Rules 2014 (Annexure 22).

xxvii) Details about Research and Development of the Company (Annexure 23).

xxviii) Disclosure as per Section 135 of Companies Act 2013 on Corporate Social Responsibility (Annexure 24).

xxix) Significant and Material Orders passed by the Regulators or Courts. (Annexure 25).

xxx) Corporate Governance Report. (Annexure 26)

For and on behalf of the Board of Directors

Sd/-

A.K.Jha

Kolkata Chairman

Date : 12th July, 2019 (DIN-06645361)

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