Production and Distribution of Coal by Central

Coalfields Limited

A Training Report
submitted in partial fulfillment of the requirements for
the award of the Degree of

BACHELOR OF BUSINESS ADMINISTRATION

By

ABHILASHA BHARTI
20BBA001

USHA MARTIN UNIVERSITY, JHARKHAND

(Established by Jharkhand Government under Sec.2(f) of UGC Act 1956)

I
FACULTY OF BUSINESS MANAGEMENT & COMMERCE
2022
Production and Distribution of Coal by Central
Coalfields Limited

A Training Report
submitted in partial fulfilment of the requirements for
the award of the Degree of

BACHELOR OF BUSINESS ADMINISTRATION

By

ABHILASHA BHARTI
20BBA001

USHA MARTIN UNIVERSITY, JHARKHAND

(Established by Jharkhand Government under Sec.2(f) of UGC Act 1956)

II
 FACULTY OF BUSINESS MANAGEMENT & COMMERCE
2022

DECLARATION CERTIFICATE

This is to certify that the work presented in the training

report entitled “Production and Distribution of Coal

by Central Coalfields Limited” in partial fulfilment of

the requirement for the award of Degree of Bachelor of
Business Administration of Usha Martin University,
Jharkhand is an authentic work carried out under my
supervision and guidance.

To the best of my knowledge, the content of this

training report does not form a basis for the award of any
previous Degree to anyone else.

Date : (Mrs. Sephalika Sagar)

Department of Management
Usha Martin University, Jharkhand

III
 Head
Department of Management
Usha Martin University, Jharkhand

CERTIFICATE OF APPROVAL

The training report entitled “Production and

Distribution of Coal by Central Coalfields
Limited”, is hereby approved as a creditable training
report presented in satisfactory manner as prerequisite to
the degree for which it has been submitted.

It is understood that by this approval, the undersigned do

not necessarily endorse any conclusion drawn or opinion
expressed therein, but approve the training report for the
purpose for which it is submitted.

(Internal Examiner) (External Examiner)

IV
 ACKNOWLEDGMENTS

I would like to thank Mr. Nishant Gaurav, the

Management Trainee for his constant support, timely
advice and guidance during the whole process of training for
completing my project - Production and Distribution

of Coal by Central Coalfields Limited . It was a great

pleasure to complete this project with the support of his
experience and help. I would also like to thank the entire
team of C.C.L, for the constant support and help in the
successful completion of my project.

Also, I am thankful to my faculty guide Mrs. Sephalika

Sagar of my institute, for her continued guidance and
invaluable encouragement.

V
 ABSTRACT

As we know coal has been one of the major used fuels ever since and the past and
CCL is the one dealing with the production and Distribution of it. CCL – Central
Coalfields Limited is a Category - 1 Mini-ratna company established on November 1 st
,1975. It is CIL’s one of the subsidiary companies. It has 43 mines in total – 5
Underground and 38 Opencast. It offers products like – Cooking Coal, Semi-Cooking
Coal, Non-cooking, Coke Fines, Tar etc. The entire project talks about the activities
that CCL is involved in and I, as an intern got to know and work on right from the
history of the company to the products it offers to it’s production’s and distribution’s
ways and policies to the determination of the price of the coal to be supplied. The coal
produced by it is produced through a 5 step process that includes – i) Exploration &
Development, ii) Mining, iii) Processing, iv) Loading &Transportation and v)
Rehabilitation. The distribution process involves three processes – i) E-Auction, ii)
By Road and iii) By Rail. In E-Auction has been introduced to facilitate across the
country wide-ranging access to book coal online for all sections of Buyers enabling
them to buy coal through a simple, transparent and consumer friendly system of
marketing and distribution of coal. There are two types of E-Auction – i) Spot E-
Auction and ii) Forwarded E-Auction. To take part in the Spot E-Auction certain
terms and conditions have been given following which one can take part in it. In
addition, the validity period for seeking allotment of rake by rail and lifting of coal by
road is 45 days from the date od issue of Sale/Delivery Number. And lastly, SHKATI
Scheme was introduced by the Union government of India with the objectives to
ensure the availability of coal to the thermal plants through objective and transparent

VI
processes. And lastly about all the changes that I observed in myself after my
internship in CCL.

NOMENCLATURE

CCL – Central Coalfields Limited

FSA – Fuel Supply Management
Cr. – Crores
Rs. Rupees
LOA – Letter of Assurance
MOU – Memorandum of Understanding
SG – State Government
CG – Central Government
GST – Goods and Services
MMDR – Mines and Minerals (Regulation and Development)
TCS – Tax Collection at Source
NCDC – National Coal Development Corporation
HOD – Head of Department
ASM – Area Sales Manager
CHEP – Commonwealth Handling Equipment Pool
SWOT – Strengths Weaknesses Opportunities Threats
CBM – Coal Bed Methane
MU – Mega Watts
BU – Billion Units

VII
 EMD – Earnest Money Deposit
IPP – Independent Power Producers
PPA – Power Purchase Agreement

CONTENTS
Chapter No. Chapter Title Page No.

Chapter 1 Introduction 1.1 Company History/Background

1.2 Corporate Policies & Strategies
1.3 Organizational Structure
1.4 Products/ Services offered
1.5 Clients (Buyers & Sellers)
1.6 Competitors
1.7 Capital Structure
Chapter 2 Business 2.1 External Environmental
Environment Analysis
Analysis
2.2 Internal Environmental
Analysis

2.3 SWOT Analysis

Chapter 3 Training 3.1Introduction to the Department

Details (Assigned)

3.2 Summary of Departmental

Activities

3.3 Training Objectives

3.4 Trainee’s Job Profile

3.5 Trainee’s Contribution

3.6 Learning Outcomes

VIII
Chapter 4 Conclusions

Chapter 5 Suggestions 5.1 Suggestions to the Company

5.2 Suggestions to the

Department

References

Annexure

IX
 Chapter 1 : Introduction

1.1 Company History/Background

1.2 Corporate Policies & Strategies
1.3 Organizational Structure
1.4 Products/ Services offered
1.5 Clients (Buyers & Sellers)
1.6 Competitors
1.7 Capital Structure

Chapter 1 : Introduction

1
 1.1 Company History / Background

CCL (previously National Coal Development Corporation Ltd.), one of Coal

India Ltd.'s five subsidiaries and the nation's first holding company for coal,
was established on November 1st, 1975. (CIL now has 8 subsidiaries). Since
October 2007, Central Coalfields Limited has become a Category-I Mini-
Ratna Company. The company's coal production increased to its highest-ever
level of 47.08 million tons in 2009–10, with a net worth of Rs. 2644 crore
compared to a paid-up capital of Rs. 940 crore.

CCL has an illustrious past. It signaled the start of India's coal mines being
nationalized as NCDC. In accordance with the Government of India's
Industrial Policy Resolutions of 1948 and 1956, the National Coal
Development Corporation Ltd. (NCDC) was established in October 1956 as a
government-owned company. It began with a base of 11 historic state
collieries (owned by the Railways) that produced 2.9 million tons of coal
annually. The Jharia coalfields in Bihar (now in Jharkhand), a few other places
in Bihar (now in Jharkhand), a portion of Madhya Pradesh (now also
Chhattisgarh), and Orissa were the main locations for coal mining in India
prior to the establishment of NCDC. Since the outset, NCDC has focused on
expanding coal output, creating new coal resources in remote places, and
implementing cutting-edge, scientific coal mining methods. NCDC was asked
to enhance its output from new collieries during the Second Five Year Plan
(1956–1961), which were primarily to be opened in regions other than the
already-developed Raniganj and Jharia coalfields. By the end of the Second
Plan, production had climbed to 8.05 million tonnes thanks to the opening of
eight new collieries during this time. Even though the Corporation had
amassed a significantly increased production capacity during the Third Five
Year Plan (1961–1966), it could not be put to use as a result of a weak local
coal market. Production had to be restricted as a result, and some collieries
that had been under development since the beginning of the Plan period had to
be put on hold. By this point, NCDC was producing about 9.6 million tons of

2
 the country's total 67.72 million tons of coal. The Fourth Five Year Plan
(1969–1974) saw a gradual increase in the demand for coal as a result of the
construction of new power plants and the growth of other coal-based sectors,
and NCDC's production grew to 15.55 million tons by the plans terminal year,
or 1973–1974.

1.2 Corporate Policies & Strategies

The corporate policy of CCL states - “Everything we do at CCL secure is unpinned by

our core values and an unwavering commitment to integrity and ethics, individual and
corporate responsibility, continual development, engagement with customers and
other stakeholders and a commitment to exceptionally high standards all form part of
our values.”

Moreover, the Product Strategy of CCL states – “ The CCL all strategies Fund
is a well diversified portfolio that invests in a complementary set of absolute
return strategies to provide diversified sources of return and attractive
risk/return characteristics.

Reference: http://centralcoalfields.in

3
 1.3 Organizational Structure

1.4 Products / Services Offered

Products offered by CCL are :

 Raw Coal
 Washed Non-Coking Coal
 Washed Medium Coking Coal
 Hard Coke
 Coal Tar

4
 1.5 Clients (Buyers and Sellers)

CUSTOMERS

 POWER SECTOR

1. State Electricity Boards (Uttar Pradesh, Punjab, Haryana and Jharkhand)

2. Delhi Vidyut Board
3. National Thermal Power Corporation (NTPC)
4. Damodar Valley Corporation (DVC)
5. Tenughat Vidyut Nigam Limited (TVNL), etc.

 STEEL SECTOR

1. Steel Authority of India Ltd (SAIL)

2. Indian Iron and Steel Co.
3. Rashtriya Ispat Nigam Limited (RINL), etc.

5
 CORE INDUSTRIES

1. Heavy Engineering Corporation (HEC

2. Kalyanpur Cement Company
3. Association Cement Company (ACC)
4. Lemo Cement Company
5. Bihar Sponge Iron Limited (BSIL)
6. Tata Sponge Iron Limited(TSIL)
7. Indo Ashahi Glass Company (IAGO)
8. Indian Aluminium Company Limited
9. National Fertilizer Limited, etc.

 NON – CORE INDUSTRIES

1. SSF Manufacturers
2. Sodium Silicate Manufacturers
3. Brick Manufacturers
4. Textile Manufacturers
5. Paper Manufacturers, etc.

1.6 Competitors

The competitors of CCL include companies like :

 CHEP – Commonwealth Handling Equipment Pool

 ACCO Brands
 Sonoco Products Company
 Amcor
 Berry Global

6
1.7 Capital Structure

During the year under report, the Authorized Share Capital and the Paid-up Share
Capital of the Company remained Rs. 1100.00 Cr. And Rs. 940.00 Cr. Respectively.
The net worth of the Company as on 31st March 2022 is Rs. 8411.98 Cr. (Standalone)
compared to Rs. 7548.53 Cr. (Standalone) as on 31st March 2021.

FINANCIAL PERFORMANCE
The Board of Directors of the Company has paid Rs. 404.20 Cr. As Interim Dividend
(Previous Year Rs. NIL) & proposed Final Dividend of Rs. 423.00 Cr. (Previous Year
Rs. 377.88 Cr.). Total dividend for the FY 2021-22 is Rs. 827.20 Cr. i.e. Rs. 880.00
per share on 94,00,000 equity shares of Rs. 1,000.00 each).

CAPITAL EXPENDITURE
The Standalone capital expenditure during the year 2021-22 has been Rs. 1849.11
Crores compared to Rs. 1863.86 Crore in the previous year.
Note : in addition, the company has paid Net Advances for Capital Expenditure of Rs.
869.24 Cr. (Previous Year Rs. 185.24 Cr.). Total Capital Expenditure including
Capital Advance for the FY 2021-22 is Rs. 1849.11 Cr. ( Previous Year Rs. 1863.86
Cr.)

7
 Chapter 2: Business Environment Analysis

2.1 External Environmental

Analysis

2.2 Internal Environmental

Analysis

2.3 SWOT Analysis

Chapter 2: Business Environment Analysis

8
 2.1 External Environmental Analysis

The external environmental factors that influences CCl are as follows:

 Increase in Coal Consumption: The demand of coal in the country is expected
to be in the range of 1.3 to 1.5 billion tons by 2030 despite the push for
renewable energy. This is an increase of 63% from the 2019-2020 demand of
955.26 million tons.
 Development of Solar Parks and Ultra Mega Solar Power Projects: The
government of India has come up with the objective to set up solar power
projects of 40,000 MW up to 2022-2023 in order to promote the usage of
renewable energy and save the non-renewable energy sources like coal. In
addition, this is also encouraging companies like CCL to come up with
alternative ideas for the energy sources.
 Permission to extraction of CBM for CIL and it’s subsidiaries: The
government has allowed coal India and it’s subsidiaries to produce natural gas
(CBM) from coal seams in mining leases it already holds.
 Foreign Investment in the Mining Sector: During 1999, the Government had
cleared 7 more proposals of leading international mining companies for
prospecting and exploration in the mineral sector to the tune of US$ 62.5
million. 65 licenses have been issued till date for prospecting an area of
around 90,142 sqkms in the states of Rajasthan, Maharashtra, Gujarat, Bihar,
Haryana and Madhya Pradesh. Prospecting licenses have been granted in
favour of Indian subsidiaries of well-known mining companies like BHP
Minerals, CRA Exploration supported by Rio Tinto (RTZ-CRA), Phelps
Dodge of USA, Metmin Finance and Holding supported by Metdist Group of
Companies UK, Meridien Minerals of Canada, RBW Mineral Industries
supported by White Tiger Resources of Australia, etc.

 Strengthening of logistics in coal distribution - In India, the logistics

infrastructure such as ports and railways are overburdened and costly and act

9
 as bottlenecks in development of free market. Privatization of ports may bring
the needed efficiencies and capacities.

2.2 Internal Environmental Analysis

As far as Internal Environmental Analysis of CCL is concerned:

 Structured Organization and Skilled Staff: The organization is very structured

and it the staffs are skilled creating a smooth and healthy work environment.
 Optimistic and Goal Oriented Approach: CCL’s Mission implies, “To produce
and market the planned quantity of coal and coal products efficiently and
economically with due regard to safety, conservation and quality.
 Easy availability of cheap Laborers: The laborers are easily available for the
mining process at low wages.
 Mining operations not so environment friendly: Historically, opencast mining
has been favored over underground mining. This has led to land degradation,
environmental pollution and reduced quality of coal as it tends to get mixed
with other matter. India has still not been able to develop a comprehensive
solution to deal with the fly ash generated at coal power stations through use
of Indian coal

 Poor Employee Productivity: Coal mining in India is associated with poor

employee productivity. The output per miner per annum in India varies from
150 to 2,650 tonnes compared to an average of around 12,000  tonnes in the

U.S. and Australia.

2.3 SWOT Analysis

10
 Strength:

 The organization is very structured and it the staffs are skilled creating a
smooth and healthy work environment.
 CCL’s Mission implies, “ To produce and market the planned quantity of coal
and coal products efficiently and economically with due regard to safety,
conservation and quality.
 The laborers are easily available for the mining process at low wages.

Weakness:

 Opencast mining has been favored over underground mining which has led to
land degradation, environmental pollution and reduced the quality of coal as it
tends to get mixed with other matter and India has still not been able to
develop a comprehensive solution for it.
 Coal mining in India is associated with poor employee productivity. The
output per miner per annum in India varies from 150 to 2,650 tonnes
compared to an average of around 12,000  tonnes in the U.S. and Australia.

Opportunities:

 In India, the logistics infrastructure such as ports and railways are

overburdened and costly and act as bottlenecks in development of free market.
Privatization of ports may bring the needed efficiencies and capacities.
 The government of India has come up with the objective to set up solar power
projects of 40,000 MW up to 2022-2023 in order to promote the usage of
renewable energy and save the non-renewable energy sources like coal. In
addition, this is also encouraging companies like CCL to come up with
alternative ideas for the energy sources.

 The government has allowed coal India and it’s subsidiaries to produce natural
gas (CBM) from coal seams in mining leases it already holds.

Threats:

11
  During 1999, the Government had cleared 7 more proposals of leading
international mining companies for prospecting and exploration in the mineral
sector to the tune of US$ 62.5 million. 65 licenses have been issued till date
for prospecting an area of around 90,142 sqkms in the states of Rajasthan,
Maharashtra, Gujarat, Bihar, Haryana and Madhya Pradesh. Prospecting
licenses have been granted in favour of Indian subsidiaries of well-known
mining companies like BHP Minerals, CRA Exploration supported by Rio
Tinto (RTZ-CRA), Phelps Dodge of USA, Metmin Finance and Holding
supported by Metdist Group of Companies UK, Meridien Minerals of Canada,
RBW Mineral Industries supported by White Tiger Resources of Australia,
etc.

Increase in Coal Consumption: The demand of coal in

the country is expected to be in the range of 1.3 to 1.5
billion tons by 2030 despite the push for renewable
energy. This is an increase of 63% as compared to
2019-2020 stats.

Strengths Weakness Opportunities Threats

Structured Organization Mining operations not Strengthening of Foreign Investment
and Skilled Staff so environment logistics in coal in the Mining
friendly distribution Sector
Optimistic and Goal Poor Employee Encouragement to use Increase in Coal
Oriented Approach Productivity renewable energy Consumption
sources.
Easy availability of cheap Permission to
Laborers extraction of CBM for
CIL and it’s
subsidiaries

Chapter 3: Training Details

12
3.1Introduction to the Department (Assigned)

3.2 Summary of Departmental Activities

3.3 Training Objectives

3.4 Trainee’s Job Profile

3.5 Trainee’s Contribution

3.6 Learning Outcomes

Chapter 3: Training Details

3.1 Introduction of Department Assigned

13
The Department assigned to us was – Marketing and Sales. It is headed by Mr. Ajit
Singh. The function of this department includes all the activities related to Marketing
and Sales like looking after the commercial aspects i.e. the Agreement Part like LOA,
FSA etc.; coordination with the Areas, Associate Finance, planning the sales through
the Road Mode, looking after the legal aspects of the department and many more. The
department not just participates in the marketing and sales related work but also
organizes e-auction twice every month.. There’s a structured team working with their
defined works and meeting the goals set up for them and the company.

14
 3.2 Summary of Departmental Activities

The Marketing & Sales department of CCL takes care of a lot of activities and there
are HODs / ASMs for all of it. The activities and the assigned HODs/ASMs are as
follows :

 HOD (FSA/LOA): Looks after commercial aspect i.e. Agreement Part like LOA,
FSA, MOU.
 HOD (OP/Traffic): Looks after wagon supply, drawl of rakes, demurrages etc.
by coordinating with Areas, Associate Finance & finally with Railways.
 HOD (Road Sale): Sales Planning through Road mode based on the records &
information made available from Project/Area in consonance with guidelines rules
framed by MOC, CIL & CCL.
 HOD (Computerized Sales Center): Receipt of payment through RTGS/NEFT,
Release of Sale Order, Processing Refunds, maintenance of Sales & Financial
Records of dispatches through Road Mode.
 HOD (M&S-Legal): Co-ordinates with sections of M&S Department, Areas,
Legal Department of CCL, Panel Advocates for legal remedies to the litigation of
Sales Department in different Lower courts, High Courts & Supreme Courts.
 Area Sales Managers: Looks after Sales related activities by Rail & Road at
Area level in Co-ordination with Colliery/ Project, & HQ
 Associate Finance: Looks after Billing incl. Credit/ Debit Notes, Realization,
Reconciliation with consumers, other finance related issues, in Co-ordination with
HQ & Area officials

3.3 Training Objectives

1. To learn about the history of company.

CCL is a category – I, Mini – Ratna company, established on November 1st,1975. It is

one of the subsidiaries of CIL. It was earlier known as NCDC – National Coal
Development Corporation Ltd. It has 43 mines out of which 5 are Underground and

15
38 are Open cast mines. In addition, it has 5 washeries out of which 4 are cooking and
1 is non-cooking washery. The Chief Managing Director of CCL is Sri P.M. Prasad.

It offers products like – Cooking Coal, Semi - cooking Coal, Non-cooking coal,
Middling, Rejects, Coke Fines etc.

2. To learn about the process of production and distribution of coal by CCL.

The production of coal takes place through a five step process :

I. Exploration & Development: This is the first stage to any production
operation and this is done to locate and determine the most appropriate
methodology to extract the mineral. It involves combined efforts of
geologists, geotechnical engineers, mining engineers, coal technologists
and surveyors for this step to be completed.
II. Mining : This step can take place through Open cut or Underground
Mining methods. The mining process involves the removal of overburden
and extraction of coal but can be considered as four distinct operations:
a) Topsoil : It is removed either ahead of mining or shaped directly
on rehabilitation areas for later use. This operation is performed
using dozers, front end loaders and trucks.
b) Laterite : The cap rock, up to 2 metres thick is either ‘ripped’ by
dozers or blasted and recovered for use as road surfacing material.
c) Overburden : Overburden is blasted to obtain a typical mixture
of ammonium nitrate and fuel oil. After blasting, overburden is
loaded by Hydraulic Excavator or Front end Loader into Rear
Dump Trucks and placed in Overburden Dumps. Initially, these
have to be placed out of the pit in order to create a large enough
hole to work in. The worked over areas are later filled in, a
process known as backfilling.
d) Coal : After the Overburden is removed from the coal seam , the
roof of the seam is closed using bulldozers. The coal seam is then
drilled and blasted. Later, bulldozers clean down to the floor of
the coal seam and front end loaders and coal trucks transport coal

16
 either to the Ewington Crushing Facility or directly to the Muja
Power Station.

III. Processing : This process involves crushing, screening and beneficiation

and takes places in CCL.
a) Crushing : This process involves crushing of the mined coal as
itb can include lumps up to metres in size. This includes a two-
stage Coal India Limited. It was earlier known process :

i. Crushing One : Feeder Breraker : Coal is crushed in a

feeder breaker, a chain conveyer under a toothed drum
that breaks the biggest lumps.
ii. Crushing Two : Sizer : In this step, coal size is further
reduced through a sizer where each oversize particle is
reduced to less than 75 millimeters.

b) Screening : It is used to separate different sizes of crushed coal.

In this process, coarse and fine coal is separated so to
accommodate for specific markets and industrial usage. This
process takes pace at a processing plant adjacent to Ewington
Mine.
c) Beneficiation/Washing : In this process, coal is processed to
remove impurities reducing ash and sulphur thereby improving
the market value of the coal.
d) Charring : Coal can be charred, a process wherein hydrogen and
oxygen are removed from the coal to make it purer form of
carbon. Once processed according top the specifications, coal is
loaded and transported accordingly.

IV. Loading & Transportation : Distribution of coal takes place with the
help of :
a) E-auction : This was introduced with the view to provide access
to coal for such buyers who are not able to source coal through
the available institutional mechanism. In the long run it is

17
 expected that e-auction may help in creating spot as well as future
market of coal in the country. It is classified into two categories –
Spot E-Auction and Forwarded E-Auction. With reference to para
vi(4) of the ‘E-Auction Scheme 2007’ the terms and Conditions
for Spot E-Auction are as follows :
i. Eligibility : Any Indian buyer is eligible in the e-auction
for the procurement of coal.
ii. Registration : Before participation, the buyer needs to
register himself for the auction. After registration, all
prospective buyers will have an auto-generated “Unique
User I’d” and a “password” based on which they can log
in.
iii. Notification : The coal company would draw program
for conducting at least two e-auctions per month and
notify the same , minimum 7 days in advance by
displaying on the Company’s notice board and putting the
same on the Coal Company’s website for wide publicity.
iv. Bidding Process : The registered Bidders would be
required to record their acceptance after login of the terms
& Conditions of the E-Auction before participation in the
bidding process.
v. Post E-Auction : Each successful bidder would be
intimated through e-mail/SMS by the Service provider on
the same date after the closure of the e-auction.
vi. Terms of Payment : The coal value to be deposited in
advance by the successful bidders shall be computed and
deposited after making the provision for the EMD
amount for the successful bid quantity by the service
provider to the company.

b) By Road : The coal company shall issue Sale / Delivery to the

successful bidders in terms of clause 6.4 after realization of
payment. The Buyer has to submit the option before the issue of

18
 the Sale/Delivery order for movement of coal ‘within state’ or
‘outside state’. The validity period to complete lifting of coal by
road shall be 45 days from the date of issue. No extension of
validity would be allowed in any case.
c) Railways : The Seniority of the buyers in case of rail borne
supplies is guided by the Seniority list as provided by the service
provider on buyer’s bid. The quantity allotted against each rake is
indicative quantity only and delivery shall be made on the basis of
actual weighment by the seller at the loading end. The validity
period for seeking allotment of rake in case of rail supplies is 45
days from the date of issue of consent by the coal company.

V. Rehabilitation : It involves returning the land to it’s natural side post

mining through strict, well researched strategies of revegetation and the
regeneration of natural ecosystems.
a) Overburden Material Classification : It’s defined according to
it’s potential to cause geochemical impacts on the environment.
Dumping of waste material is undertaken so the best materials
end up near the surface of waste landforms and the other material
is encapsulated in the middle.
b) Land Recontouring : When theblandforms are no longer needed
for mining or dumping purposes the slopes are recontoured to
around 10 degrees to control surface runoff and to ensure stable
slopes.
c) Seedling : Rehabilitation areas are seeded at the break of the
winter rainy season and initially are suspectable to erosion
damage until germination and root development has occurred.
d) Regeneration : In this process, native bush species comprising
grasses, groundcovers, shrubs and trees are sown together with a
“nurse” crop of cereal rye. The cereal rye germinates quickly and
stabilizes the surface through the winter and the native emerge the
following spring.

19
3. To learn about the pricing of the coal and to do calculations based on it.

The pricing description of coal includes the following :

4. To learn about the SHAKTI scheme.

SHAKTI stands for Scheme for Harnessing and Allocating Koyla Transparently
in India. It was introduced in 2017 for the power consumers. The main objective
of this policy is to make coal available to all the Thermal Power Plants of the
country in a transparent and objective manner and at the same time ensure that
the benefits of linkage coal are transferred to the end consumers.
With this policy, the government also aims to reduce dependency on imported
coal. As regards the initiatives for rationalization of coal linkage, it is estimated
that during 2014-15 to 2016-17, the source of rationalization of coal linkages has
resulted in estimated saving of Rs. 3000 crores per annum on transportation cost
to power utilities.

20
 Benefits of the policy :
 Coal available to Power Plants in transparent and objective manner.
 Auction to be made the basis of linkage allocations of Independent Power
Producers (IPP).
 Direct benefit of reduction in tariff by Power Purchase Agreement (PPA)
holders would go to consumers.
 Power Plants would get log term security of supply of coal from a source of
their choice.

3.4 Trainee’s Job Profile

 Company – Central Coalfields Limited

 Mode - Offline Internship
 Company Role - To calculate the prices of the Coal to be delivered
 Department - Marketing
 Duration - 2 months
 Job Description – To assist the concerned authorities in the calculation of the
coal to be delivered based on the guidelines provided.

21
 3.5 Trainee’s Contribution

 Carried out computations for all the allotted problems given by the seniors
according to the given layout.

 The prices are in Rupees (Rs.).

 ‘B’ is established after ‘A’ has been subjected to the GST and GST
compensation calculations. A price differential will exist between
those who fill out the 27 ‘C’ form and those who do not. Therefore, we
must determine both the prices and as a result two prices are
determined on ‘B’.

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  One of the calculations done by me are as follows :

Here, the basic price was mentioned and I had to determine the price of
the coal to be supplied.

 Performed the given tasks with utmost caution as possible and contributed in
the productivity of the department.

3.6 Learning Outcomes

 C.C.L is a Category – 1, Mini-Ratna Company established on November 1,
1975.
 The production of coal takes place by a five step process :
1) Exploration & Development
2) Mining
3) Processing
4) Loading & Transportation
5) Rehabilitation
 Distribution of coal takes place with the help of :

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 1) E-Auction
2) By Road
3) By Rail
 SHKATI Scheme was introduced by the Union government of India with the
objectives to ensure the availability of coal to the thermal plants through
objective and transparent processes.
 I came to know how a firm, especially a government firm, works.
 I got to know about the corporate culture a nd it helped me to establish
good relationship with my seniors.

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 Chapter 4: Conclusions

Based on my 2 months training, I got to know about the company and it’s occupation
– CCL (here). I came to know that CCL was established on November 1 st, 1975 and it
is a category – I, Mini-Ratna company. It was earlier known as NCDC and has 43
mines and 5 washeries. The coal produced by it is produced through a 5 step process
that includes – i) Exploration & Development, ii) Mining, iii) Processing, iv)
Loading &Transportation and v) Rehabilitation. The distribution process involves
three processes – i) E-Auction, ii) By Road and iii) By Rail. In E-Auction has been
introduced to facilitate across the country wide-ranging access to book coal online for
all sections of Buyers enabling them to buy coal through a simple, transparent and
consumer friendly system of marketing and distribution of coal. There are two types
of E-Auction – i) Spot E-Auction and ii) Forwarded E-Auction. To take part in the
Spot E-Auction certain terms and conditions have been given following which one
can take part in it. In addition, the validity period for seeking allotment of rake by rail
and lifting of coal by road is 45 days from the date od issue of Sale/Delivery Number.
And lastly, SHKATI Scheme was introduced by the Union government of India with
the objectives to ensure the availability of coal to the thermal plants through objective
and transparent processes.

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 Chapter 5: Suggestions

Based on my experiences of the 2 months summer internship under mentioned are some of
the suggestions I would like to give to the company and the department.

5.1 Suggestions to the Company

 More exposure should be given to the interns.

 Awareness regarding the important steps taken by the company should be
spread.
 Less time should be taken for the paperwork of the interns at the time of their
allotments.

5.2 Suggestions to the Department

 Awareness should be spread regarding important schemes like SHAKTI

through interns and other ways.
 The concerned authorities can be asked by the department to spare a bit of
their time on the interaction sessions with the interns and give out their
valuable learnings and experiences till date.
 Name plates should be mentioned to make it easier for the interns to find the
concerned authorities.

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 References

http://centralcoalfields.in

www.google.com

https://www.slideshare.net

www.wikipedia.com

Coal in India – 2019 by Department of Industry, Innovation and Science.

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Annexure

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CCL – Central Coalfields Limited
FSA – Fuel Supply Management
Cr. – Crores
Rs. Rupees
LOA – Letter of Assurance
MOU – Memorandum of Understanding
SG – State Government
CG – Central Government
GST – Goods and Services
MMDR – Mines and Minerals (Regulation and Development)
TCS – Tax Collection at Source
NCDC – National Coal Development Corporation
HOD – Head of Department
ASM – Area Sales Manager
CHEP – Commonwealth Handling Equipment Pool
SWOT – Strengths Weaknesses Opportunities Threats
CBM – Coal Bed Methane
MU – Mega Watts
BU – Billion Units
EMD – Earnest Money Deposit
IPP – Independent Power Producers
PPA – Power Purchase Agreement

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