COAL INDUSTRY IN INDIA- A

RETROSPECT,
NATIONALISATION OF COAL
MINES

Praveen Kumar
Sr. Manager (Mining)
Project & Planning
COAL PRODUCTION( IN MT )
YEAR WISE ALL INDIA COAL
PRODUCTION INDIA
1947 >30 NIL
1974-75 >90 79
1977-78 >100 89
1989-90 >200 179
1999-00 >300 261
2005-06 >400 343
2010-11 >450 431.32
WHY COAL ?
 Recoverable coal reserve is found in 70
countries in the world.
 Coal reserves are very large & readily
available.
 Coal can be easily stored at power stations for
use in emergencies.
 Coal based power is not dependent on
weather.
 Coal does not need high pressure pipelines or
dedicated supply routes.
 Coal supply routes do not need to be
protected at enormous expense.
Highlights of CIL
 Single Largest Coal Producing Company in the World.
 Largest Corporate Employer in India.
 CIL was awarded Mini-Ratna status in 2007 & Nav-Ratna status in
2008.
 82 Mining Areas across 8 states
 82% of India total coal production during 2014-15
 430 Coal mines
 97 of 100 thermal power stations in the country receive coal from coal
India
 494.24MTe coal production in 2014-15 ( 32 Mte incremental from Last
year). Highest ever and OB removal of 886.528MCum
 489.38MTe of raw coal off-take during 2014-15. Increase in 17.80MTe
from last year
 Manpower as on 1.4.2015 : 3,33,097
 15 operating coal washeries
 27 technical & management training institutes
 102 Vocational Training Institutes Centres
 As on 1st April 2015: Geological resource of Indian coal
stood at 306.59Billion Te
 CIL producing 82% of country coal production
 ECL Came out from BIFR in 2014-15
 BCCL conferred Miniratna status
 CIL Paid corporate tax of Rs 9572.05Crores in 20145-15
 During 2014-15, CIL as a whole earned pretax profit
(PBT)of Rs 21,482.21Crores and a PAT of Rs 13,726.70
crores
 79.65% share of CIL, 0.35% share of CPSE- ETF, 20%
shares of public
 The Indian coal industry is the world’s third
largest in terms of production
 Fourth largest in terms of reserves
 Around 70% of the total production is used for
electricity generation
 Remaining by the steel, cement and other
heavy industries
 Coal is also used as fuel for domestic purposes
 First in Production: China
 Second in Production: America
Coal India Limited at a glance
 Produce non-coking coal and coking coal of various grades
 As on March 31, 2015: 430 mines in 21 major coalfields
across eight states in India
 15 coal beneficiation facilities
 Planning to develop an additional 15 coal beneficiation
facilities

 Coal India's major consumers are the power and steel

sectors. Others include cement, fertiliser, brick kilns etc.
 PAST PERFORMANCE OF CIL
Description Unit 2012-13 2013-14 2014-15
Coal Prodn. mt 452.211 462.42 494.238
Coal Offtake mt 466 471 490
Manpower( year end) 357926 346638 333097
Net Profit Rs.Cr. 17356 15112 13727
Net Worth Rs.Cr. 48461 42392 40343
Gross Sales Rs.Cr. 88281 89217 95435
EPS Rs 27.63 23.92 21.73
OMS(UG) Te 0.77 0.76 0.79
OMS(OC) Te 11.48 12.18 13.13

OMS(UG+OC) Te. 5.32 5.62 6.20

 WORLD FUEL RESERVES(2008)
FUEL Reserve Prodn. Life

Coal 984 bt 5.9 bt 190yrs

Natural Gas 176 tcum 2.8 tcum 70yrs

Oil 1215 bb 29.6 bb 40yrs

WORLD COAL/LIGNITE
PRODUCTION
Year Coal Year Lignite
(mt) (mt)

2006 5,205 2006 937

2007 5,542 2007 956
2008 5,845 2008 951
COAL STATISTICS (2008)
Country Reserve Prodn. Life
(bt) (mt) (Yrs.)
USA 238 1,007 236
Russia 157 247 636
China 115 2,761 42
India 106 490 216
Australia 76 325 233
Ukraine 34 - -
Kazakhstan 31 104 298
South Africa 30 236 127
COAL RESERVES IN INDIA
as on 1st.April 2010 (bt)
Type of Proved Indicated Inferred Total %age
Coal Share

Coking 17.67 13.64 2.10 33.41 12

Non-
Coking
91.65 116.92 33.46 242.03 87

Tertiary 0.480 0.09 0.80 1.37 1

Total 109.80 130.65 36.36 276.81 100

Brief History of CIL
 1774 – First coal mine started in Raniganj Coalfield
 1956 – Formation of National Coal Development Corporation
(NCDC).
 01-05-72 – Nationalisation of Coking Coal Mines & formation
of BCCL.
 01-05-73 – Nationalisation of Non-Coking Coal Mines &
formation of Coal Mines Authority Limited (CMAL).
 01-11-75 – Formation of CIL with 5 subsidiaries BCCL, CCL,
WCL, ECL & CMPDIL.
 28-11-85 – NCL carved out of CCL & SECL carved out of WCL.
 03-04-92 – MCL formed out of SECL
 01-01-2000 – Deregulation of Coal pricing & distribution.
 15-03-07 – CIL & 4 subsidiaries (NCL, SECL, MCL & WCL) was
accorded MINIRATNA Cat-I.
 29-07-07 – CCL was accorded MINIRATNA Cat-I status.
 29-05-09 – CMPDIL was accorded MINIRATNA Cat-II status.
 24-10-08 – CIL was accorded NAVRATNA status.
 CIL - MAHARATNA
Nationalisation of Coal Mines
On account of the growing needs of the steel industry,
a thrust had to be given on systematic exploitation of
coking coal reserves in Jharia Coalfield. Adequate
capital investment to meet the energy needs of the
country was not forthcoming from the private coal
mine owners.
 Unscientific mining practices adopted by some of
them and poor working conditions of labour in some
of the private coal mines became matters of concern
for the Government. On account of these reasons, the
Central Government took a decision to nationalize the
private coal mines.
 The nationalization was done in two phases
 First with the coking coal mines in 1971-72 and then
with the non-coking coal mines in 1973.
 In October, 1971, the Coking Coal Mines (Emergency
Provisions) Act, 1971 provided for taking over in public
interest of the management of coking coal mines and coke
oven plants.
 Followed by the Coking Coal Mines (Nationalization) Act,
1972 under which the coking coal mines and the coke oven
plants other than those with the Tata Iron & Steel Company
Limited and Indian Iron & Steel Company Limited, were
nationalized on 1.5.1972 and brought under the Bharat
Coking Coal Limited (BCCL)
 Another enactment, namely the Coal Mines (Taking over of
Management) Act, 1973, extended the right of the
Government of India to take over the management of the
coking and non-coking coal mines in seven States including
the coking coal mines taken over in 1971.
 Followed by the nationalization of all these mines on 1.5.1973
with the enactment of the Coal Mines (Nationalization) Act,
1973 which now is the piece of Central legislation determining
the eligibility of coal mining in India.
Coal Sector Reforms
 Setting up of Coal Regulatory Authority.
 Allocation of Captive Coal Blocks by Auction.
 Rs.50/- per ton Clean Coal Cess w.e.f. 1st.July 2010
New Initiatives by CIL
 New R&R & CSR Policy introduced.
 Standardisation & Upgradation of HEMMs & Purchase of
high capacity HEMMs.
 Global EOI received for Construction, Development &
Operation of 7 nos. high capacity (2-5mty) UG mines.
 Global Tender floated for Re-development of 18 nos.
Abandoned UG Mines in JV.
 Global Tender floated for setting-up New Coal Washeries
About NLC
 Neyveli Lignite Corporation (NLC) was registered as a company on 14th.
November 1956.
 The mining operations in Mine-I were formerly inaugurated on 20th. May
1975.

About SCCL
 The Singareni Collieries Company Limited (SCCL) is a
State Enterprise of Govt. of Andhra Pradesh in which
Govt. of A.P. and Govt. of India hold equity capital in
the ration of 51:49 respectively.
Biggest Areas/Mines of CIL(2008-09)
S.N. Areas Co.
1 Gevra SECL

2 Dipka SECL
3 Jagannath MCL
4 Piparwar CCL
5 Lakhanpur MCL
6 Dudhichua NCL
7 Jayant NCL
8 Lingraj MCL
9 Kusmunda SECL
10 Hingula MCL
11 Nigahi NCL
12 Bharatpur MCL
13 IB Valley MCL
 Expansion of Big OCP Mines of CIL
Mines Comp. Capacity
(mt)
Gevra SECL 35 to 50 to 70
Dipka SECL 25
Talabira MCL 20
Rajmahal ECL 17
Lingraj MCL 16
Amrapali CCL 12
Pelma SECL 15
 PERFORMANCE OF CIL

Comp. UG Prod(Mte) OC Prod(Mte) Profit (PAT) Profit (PBT)

(Rs.Cr.) (Rs.Cr.)

ECL 7.292 32.716 1782.41

BCCL 2.029 32.485 1154.22
CCL 0.841 54.811 2740.34
NCL 0 72.484 3713.47
WCL 7.565 33.582 544.79
SECL 16.036 112.239 5659.46
MCL 1.276 120.103 5314.24
CMPDI 0 39.33
CIL ---- 13651.89
Standalone
CIL 35.04 459.2 34600.15
U/G MECHANISATION IN CIL (1st.April 2009)
Comp. SDL LH High R/Header PSLW SHW Conv/ Cont.
D Cap Mech Miner
LHD LW

ECL
BCCL

CCL
NCL
WCL
SECL

MCL
CIL
 HEMM IN CIL ( 1.4.2015 )
Dragline Shovel Dumper Dozer Drill

No. of Eqp. 37 626 2901 1005 700

Availability in % 95 92 107 94 104

Utilisation in % 81 78 73 56 62
 National Coal Wage Agreements (NCWA)
NCWA Signed On Period of Agreement Duration of
Agreement
From To

NCWA-I 11.12.1974 01.01.1975 31.12.1978 4 yrs.

NCWA-II 11.08.1979 01.01.1979 31.12.1982 4 yrs.
NCWA-III 11.11.1983 01.01.1983 31.12.1986 4 yrs.
NCWA-IV 27.07.1989 01.01.1987 30.06.1991 4-1/2 yrs.
NCWA-V 19.01.1996 01.07.1991 30.06.1996 5 yrs.
NCWA-VI 23.12.2000 01.07.1996 30.06.2001 5 yrs.

NCWA-VII 15.07.2005 01.07.2001 30.06.2006 5 yrs.

NCWA- 24.01.2009 01.07.2006 30.06.2011 5 yrs.
VIII
Eligibility of CIL for MAHA-RATNA
Three Years Track Record of CIL(2009-10)
 Net Profit more than 5,000Cr. Rs. 8,312 Cr.
 Net Worth more than 15,000Cr. Rs.25,844Cr.
 Turnover over 25,000Cr. Rs.50,088 Cr.
 Listing on Indian Stock Exchange – Listed in 2010

Status Nos. Financial Powers

1. Mini-Ratna Cat.-II 14 nos. Rs. 300 Cr.
2. Mini-Ratna Cat.-I 47 nos. Rs. 500 Cr.
3. Navratna 15 nos. Rs.1,000 Cr.
4. Maharatna 04 nos. Rs.5,000 Cr.
 New Coal Washeries to be setup
 Comp. Location Capacity Comp. Location Capacity
(MTY) (MTY)
ECL Chitra 2.50 CCL Ahoka 10.00
Sonpur Bazari 8.00 New Piparwar 3.50

BCCL Madhuvan 5.00 Karo 2.50

Patherdih 5.00 Dhori 2.50
Patherdih 2.50 Konar 3.50
Bhojudih 2.00 MCL Basundhra 10.00

Dugda 2.50 Hingula 10.00

Dahibari 1.60 Jagannath 10.00

SECL Kusmunda 10.00 Samleshwari 10.00
Baroud 5.00 IB Valley 10.00
WCL Kolarpimpri 5.00
 STANDARD ANNUAL PRODUCTIVITY OF HEMMs
DRAGLINES DUMPERS SHOVELS
Prod. Prod. Prod.
Capacity Capacity. Capacity
(mcum) (mcum) (mcum)

6.3/8
10 cum 1.41 85 T 0.24 1.53
cum

15 cum 2.15 100 T 0.28 10 cum 1.88

20 cum 2.93 120 T 0.32 12.5 cum 2.47

24 cum 3.56 170 T 0.51 20 cum 3.80

 REVISED SURVEY-OFF NORMS FOR HEMMs
DRAGLINES DUMPERS SHOVELS
Life Life Life
Capacity Capacity. Capacity
(Yrs./Hrs.) (Yrs./Hrs.) (Yrs./Hrs.)

9.5 cum
10 cum 25/1,00,000 85 T 09/24,000 8/28,000
(Hyd.)

15 cum 30/1,40,000 100 T 12/40,000 10 cum 20/75,000

20 cum 30/1,40,000 120 T 12/40,000 12.5 cum 15/45,000

24 cum 30/1,40,000 170 T 15/50,000 20 cum 22/90,000

 NORMS FOR AVAILABILITY & UTILISATION
International CMPDI Norms CIL(2008-09)
HEMM Avail. Utln. Avail. Utln. Avail. Utln.
(%) (%) (%) (%) (%) (%)

DRAGLIN
E 85 72.25 85 73 84 72

SHOVEL 80 68 80 58 72 49

DUMPER 80 68 67 50 66 36

DOZER - - 70 45 64 27

DRILL 80 68 78 40 75 29
 PRICE OF ONE MACHINE
HEMM Model - Cost Model - Cost

DRAGLINE 24/88 – Rs.156Cr. 33/72 – 191Cr.

SHOVEL (ER) 20 cum – Rs.51Cr. 10 cum – Rs.26Cr.
SHOVEL(DH) 9.5cum – 8.41Cr.
DUMPER 100T – 3.13Cr.
DOZER 450HP – Rs.2Cr. 850hp – Rs.5.5Cr.
DRILL 250mm – Rs.2.83Cr. 311mm – 15Cr.
PAYLOADER 6.1cum – Rs.3.12Cr.
MOTOR
280HP – 1.82Cr.
GRADER
WATER
28KL – Rs.0.90Cr.
 PRODUCTION LOSS DUE TO IDLING FOR 1 HOUR
Production Loss(Rs.)
HEMM Model Description
in OB In Coal

24/96 2,04,4450 -

DRAGLIN 20/90 For 85% 90 deg. & 15% 120 1,67,040 -

E deg. angles
15/90 1,23,540 -

10/70 80,910 -

20cum With 170T 2,63,610 -

SHOVEL
10cum With 85T 1,32,240 6,96,000

170T With 20cum, 1.5km lead 53,000 -

DUMPER 120T With 10cum, 1.5km lead, 32,190 1,63,590

90% cat-III & 10% cat-IV
85T rocks 26,100 1,39,200
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