Coal India

CHAPTER-V
COAL INDIA LIMITED

OBJECTIVES AND FUNCTIONS
5.1 Coal India Limited (CIL), a holding company, was set up on 1st November, 1975 to streamline the
working of the coal industry in a manner conducive to more efficient administration and rapid stepping up of
coal production. The company has under it seven producing subsidiaries and one planning and design
subsidiary. The coal mines in the north eastern region are directly managed by the holding company.
Dankuni Coal Complex, a coal carbonisation plant in West Bengal, is also directly under the holding
company. The subsidiary companies, with their powers defined in their respective Articles of Association,
are responsible for all operational matters. The holding company, CIL, is primarily responsible for establishing
corporate objectives and strategies for their achievements, for setting up of targets, monitoring of
performance, marketing, raising resources and laying down broad guidelines in important policy matters like
marketing, procurement, environmental management, inventory control, etc.
5.2 The authorised capital of Coal India Limited as on 31.3.2000 was Rs.8000 crores and paid up capital
is Rs.6316.36 crores. Be sides, loan of Rs.904.18 crores had been converted into 10% redeemable preference
shares. Government of India makes investments in Coal India Limited either by way of loans or equity. The
equity and loan capital of the Company in turn is invested into equity or loan in the wholly owned subsidiary
companies of CIL.
PLAN OUTLAY
5.3 The plan outlay of CIL for the 8th Plan period had been approved at Rs.8520 crores at 1991-92 price
base. As against this target actual plan expenditure for 8th Five Year Plan was Rs.8135.03 crores on current cost
basis. Capital investment status of CIL during IX five year plan is given below:=
Approved by NDC : Rs.12401.00 crores

Approved by Planning Commission in mid term appraisal : Rs. 12000 crores
Investment now anticipated : Rs.9025.00 crores
The Plan outlay in RE 2001-02 is Rs.1540.00 crores against the BE 2001-02 of Rs.2309.90 crores.
Reduction in Plan outlay in 2001-02 is due to low fund generation in some of the subsidiaries and cancellation of
IBRD loan (Part II). The Plan outlay for BE 2002-03 is Rs.2190.00 crores. Estimated Plan outlay during X Plan is
Rs.14310 crores.
SUBSIDIARY-WISE INVESTMENT OF PLAN FUNDS

(Rs. in crores)
COMPANY 1998-99 1999-00 2000-01 2001-02 2001-02 2002-03 X Plan
Actual Actual Actual BE RE BE BE
ECL 131.23
BCCL 172.02
CCL
NCL
WCL
SECL
MCL
CMPDIL
NEC/DCC/CIL/IICM
TOTAL
SOURCES OF FUNDING
Internal Resources
Bonds
28
Suppliers' Credit
IBRD
Addl Resource Mobilisation
COMPANY 1998-99 1999-00 2000-01 2001-02 2001-02 2002-03 X Plan
Actual Actual Actual BE RE BE BE
Inter-Corporate / Commercial loan 150.00 165.00 300.00 610.00 445.90 605.00 435.00
Others
TOTAL IEBR 1214.91 1517.98 1824.55 1831.97 2501.50 2545.22 2703.15
External aid through budget 41.00 12.47 0.00 0.00 54.50 130.97 87.17
Net Budgetary Support 247.72 0.00 0.00 0.00 0.00 0.00
TOTAL OUTLAY 1503.63 1530.45 1824.55 1831.97 2556.00 2676.19 2790.32
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SCHEME-WISE ALLOCATION OF PLAN FUNDS
5.4 Coal India Ltd. has been endeavouring to fulfil its objective of meeting the demand for coal
through increase in production, improving efficiency, minimising production costs and at the same time
providing for social, educational, medical and welfare facilities to its employees. Given the limited
resource availability, an effort is made to maintain an appropriate bala nce between short term and long term
production needs on the one hand and between production and welfare activities on the other. The
subsidiary -wise/group-wise capital expenditure and plan outlay is as follows :-
GROUPWISE INVESTMENT PLAN
(Rs. in crores)
GROUP 1998-99 1999-00 1999-00 2000-01
Actual B.E. R.E. B.E.
EASTERN COALFIELDS LIMITED
EXISTING+ COMPLETED PROJ. 77.93 67.69 102.40 86.90
ON GOING PROJECTS 43.19 44.11 38.47 48.58
FUTURE PROJECTS 1.14 1.70 3.22 2.52
TOTAL MINING 122.26 113.50 112.90 138.00
OTHER NONMINING 3.50 3.50 4.10 4.00
EXPLORATION + P&D 5.47 3.00 3.00 3.00
TOTAL ECL 131.23 120.00 151.19 145.00
BHARAT COKING COAL LIMITED
FUTURE PROJECTS 10.00 10.00
TOTAL MINING 162.02 99.30 134.30 124.74
WASHERY 8.78 11.00 7.10 8.00
OTHER NON MINING 1.28 6.70 5.60 3.00
EXPLORATION + P&D 3.00 3.00 4.26
ADJUSTMENTS -0.06
TOTAL BCCL 172.02 120.00 150.00 140.00
CENTRAL COALFIELDS LIMITED
EXISTING + COMPLETED PROJ. 109.16 102.22 94.14 82.89
FUTURE PROJECTS 25.22
ADVANCE ACTION (X Plan) 0.05 1.99 2.00 0.00
TOTAL MINING 169.68 205.19 207.43 246.40
WASHERY 0.54 4.80 3.57 4.10
EXPLORATION + P&D 9.66 7.50 7.50 7.50
TOTAL CCL 181.46 220.00 220.00 260.00
NORTHERN COALFIELDS LIMITED
TOTAL MINING 323.40 976.50 1023.16 897.21
OTHER NONMINING 12.85 18.00 21.14 41.76
EXPLORATION + P&D 4.70 5.50 5.70 7.73
ADJUSTMENTS 1.78
TOTAL NCL 342.73 1000.00 1050.00 946.70
WESTERN COALFIELDS LIMITED
FUTURE PROJECTS 0.94 2.29 0.77 78.59
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GROUP 1998-99 1999-00 1999-00 2000-01
EASTERN COALFIELDS LIMITED
TOTAL MINING 122.26 113.50 112.90 138.00
EXPLORATION + P&D 5.47 3.00 3.00 3.00
TOTAL ECL 131.23 120.00 151.19 145.00
BHARAT COKING COAL LIMITED
FUTURE PROJECTS 10.00 10.00
TOTAL MINING 162.02 99.30 134.30 124.74
WASHERY 8.78 11.00 7.10 8.00
OTHER NON MINING 1.28 6.70 5.60 3.00
EXPLORATION + P&D 3.00 3.00 4.26
ADJUSTMENTS -0.06
TOTAL BCCL 172.02 120.00 150.00 140.00
CENTRAL COALFIELDS LIMITED
TOTAL MINING 169.68 205.19 207.43 246.40
WASHERY 0.54 4.80 3.57 4.10
EXPLORATION + P&D 9.66 7.50 7.50 7.50
TOTAL CCL 181.46 220.00 220.00 260.00
NORTHERN COALFIELDS LIMITED
TOTAL MINING 323.40 976.50 1023.16 897.21
OTHER NONMINING 12.85 18.00 21.14 41.76
EXPLORATION + P&D 4.70 5.50 5.70 7.73
ADJUSTMENTS 1.78
TOTAL NCL 342.73 1000.00 1050.00 946.70
TOTAL MINING 283.77 276.05 274.53 361.92
WASHERY 0.74 0.35 0.35 0.22
OTHER NONMINING 20.31 8.60 8.61 13.86
EXPLORATION + P&D 17.13 18.00 19.50 14.00
ADJUSTMENTS 37.88
TOTAL WCL 359.83 303.00 303.00 390.00
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GROUP 1998-99 1999-00 1999-00 2000-01
SOUTH EASTERN COALFIELDS LIMITED
EXISTING COMPLETED PROJ. 158.69 239.35 266.79 250.94
ADVANCE ACTION (X Plan) 0.00
TOTAL MINING 239.08 481.70 491.70 460.30
OTHER NONMINING 49.86 30.30 28.30 57.56
EXPLORATION + P&D 20.80 14.00 20.00 18.62
TOTAL SECL 309.74 526.00 540.00 536.48
MAHANADI COALFIELDS LIMITED
FUTURE PROJECTS 2.30 3.97 9.05 11.00
TOTAL MINING 238.29 209.60 194.56 261.09
OTHER NONMINING 88.28 27.40 43.44 84.05
EXPLORATION + P&D 13.00 12.00 12.00
TOTAL MCL 326.57 250.00 250.00 357.14
CMPDIL 2.19 5.00 5.00 5.00
DCC/CIL HQ/ICIM 5.49 12.00 7.00 10.00
COAL INDIA LIMITED
NEW PROJECTS 4.44 9.82 23.43 167.68
TOTAL MINING 1538.49 2361.84 2438.58 2489.66
WASHERY 10.06 16.15 11.02 12.32
OTHER NONMINING 177.67 97.01 112.69 206.23
EXPLORATION + P&D 57.76 64.00 70.70 67.11
UN ADJUSTED 39.59
OTHERS 8.40 17.00 12.00 15.00
TOTAL CIL 1831.97 2556.00 2676.19 2790.32
COAL PRODUCTION
5.5 The actual production from the existing projects, ongoing projects and the new projects for 1998-
99 and anticipated production in 1999-2000, 2000-01 are produced below :
COAL PRODUCTION
(In million tonnes)
1998-99 1999-00 1999-00 2000-01
Actual B.E R.E B.E
Existing 32.46 30.94 31.61 29.64
Completed projects 184.22 176.29 177.34 177.79
On-going 39.81 51.83 50.05 59.35
New 0.00 0.04 0.00 0.22
Total 256.49 259.10 259.00 267.00
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5.6. The company-wise coal production is given in the table below:-
(In million tonnes)
Company 1997-98 1998-99 1999-00 1999-00 2000-01
Actual Actual B.E. R.E B.E.
ECL 27.42 27.16 29.00 28.00 28.00
BCCL 30.92 27.17 27.50 29.00 29.50
CCL 33.08 32.18 33.50 32.00 34.00
NCL 37.12 36.52 37.50 37.50 39.00
WCL 32.52 31.75 32.00 32.00 33.00
SECL 56.63 57.56 58.00 58.00 60.00
MCL 42.17 43.51 41.00 42.00 43.00
NEC 0.69 0.64 0.60 0.50 0.50
Overall CIL 260.55 256.49 259.10 259.00 267.00
5.7 Production of washed coal during 1998-99 was 6.23 million tonnes. In the year 1999-00 washed
coal production anticipated is 6.45 m.t. Projection for 2000-01 is 6.70 m.t.
COAL OFFTAKE AND PIT HEAD STOCKS

5.8 Offtake of raw coal was at a level of 260.59 m.t. during 1997-98 and 252.22 m.t. during 1998-99. At
the end of March 1999, the pit-head saleable stock of coal was 29.95 m.t. However, due to sluggish demand
by power sector coal stock will be to the level of 26.21 m.t. (provisional) at the end of 1999-2000.
Subsidiary -wise figures of offtake and pit-head stocks of coal are given in the table below:-
COAL OFFTAKE AND PITHEAD STOCKS

(In million tonnes)
COAL OFFTAKE COAL STOCK
Vendible Stock
Name of the 1997-98 1998-99 1998-99 1999-00 2000-01 As on As on
Subsidiary Actual Actual R.E Target Target 31.3.1999 31.3.2000
(anticipated)
ECL 27.53 26.34 27.00 29.00 29.00 4.30 2.52
BCCL 28.24 27.49 27.40 27.05 29.80 4.17 3.94
CCL 33.23 32.31 33.23 34.20 34.00 4.72 3.81
NCL 37.48 35.50 36.00 37.20 39.00 2.29 2.49
WCL 31.65 30.73 31.00 32.00 33.00 3.31 1.76
SECL 58.51 57.30 56.40 58.50 60.00 6.27 6.59
MCL 43.36 41.83 40.30 41.30 43.00 4.06 4.53
NEC- CIL 0.59 0.72 0.67 0.70 0.70 0.83 0.57
Total CIL 260.59 252.22 252.00 260.65 268.50 29.95 26.21
VENDIBLE STOCK
( in million tonnes )
5.9 Vendible coal stock on 01.04.1999 was as under :
Opening vendible stock as on 01.04.1998 26.41
(As per audited accounts 1998-99)
i) Derived stock 30.90
ii) Measured stock 29.56
Break-up of difference
(a) Excess within 5% 0.08
(b) Shortage within 5% 0.47
(c) Excess beyond 5% 0.15
(d) Shortage beyond 5% 1.09
Stock adopted in accounts. (ii- a+b) 29.95
Less : Seized Coal -
Total Vendible stock 29.95
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COAL SALE DUES
5.10 Coal India Limited is required to meet the coal needs of all consumers including power, steel,
cement plants etc. As a matter of commercial prudence, coal should be supplied after payment has been
made, but this principle has not been made applicable in the case of bulk consumers like power houses,
steel plants etc. with the result that an amount of Rs.5799.45 crores was outstanding as coal sale dues
as on 31.3.99 The dues from power houses accounted for nearly 83% of the total dues. The position of
outstanding dues as on 31.3.99 is as under:
(Rs.in crores )
Sector Undisputed Disputed Total
1. Loco 34.72 2.85 37.57
2. Power Houses 1919.41 2886.67 4806.08
3. Steel Plants 611.18 234.19 845.37
4. Government agencies 35.79 51.06 86.85
PRODUCTIVITY
5.11 The productivity in coal sector is normally measured in terms of output per man shift in tonnes. It
would be seen that OMS is going up from year to year showing efforts to improve efficiency. The
following table shows labour productivity as a result of various measures:
(in tonnes)
Company 1997-98 1998-99 1999-00 1999-00 2000-01
Actual Actual R.E B.E B.E.
ECL 0.80 0.85 0.89 0.93 0.99
BCCL 1.07 1.07 1.04 1.15 1.26
CCL 1.69 1.77 2.08 1.95 2.19
NCL 8.55 8.80 8.64 8.90 9.10
WCL 1.68 1.72 1.68 1.77 1.83
SECL 2.57 2.62 2.62 2.65 2.70
MCL 7.59 8.03 7.78 7.84 8.02
NEC, CIL 0.77 0.72 0.72 0.59 0.62
Overall CIL 1.93 2.03 2.04 2.11 2.25
CAPITAL RESTRUCTURING OF COAL INDIA LIMITED

5.12 A policy support package was approved by the Government to restructure the capital
base of Coal India Limited which had the following components:
(a) Outstanding interest free non-plan loan of Rs. 432.64 crores owed by CIL to the Government as on
31.3.1992 was allowed to continue as such in the books of CIL upto 1998-99. Thereafter, CIL is to
repay the amount in three equal instalments with usual interest.
(b) Outstanding plan loan to the extent of Rs.904.18 crores owed by CIL to the Government as on
31.3.92 was converted into non-cumulative 10% preference shares, redeemable in 2003-04.
(c) Overdue interest of Rs.891.75 crores upto 31.3.92 and penal interest of Rs.553.92 crores payable by
CIL to Government was waived / written off.
(d) WCL was allowed to charge the grade price of coal notified for SCCL.
(e) Price and distribution of coking coal and non-coking coal of grades A, B & C were deregulated.
Subsequently grade D coal had also been deregulated and the Government has allowed coal PSUs
to notify prices of the regulated grades i.e. E, F & G coals on the basis of BICP formula.
Subsequent revision based on the same formula have been allowed at intervals not less than six
months till 1st January, 2000.
(f) Disinvestment of equity in WCL may be undertaken at the appropriate time.
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CAPITAL RESTRUCTURING OF THE SUBSIDIARIES OF COAL INDIA LTD.
5.13 An internal exercise of restructuring of capital and debt profile of the subsidiary companies of Coal
India Limited was decided by the Coal India Board in its 166th meeting held on 08.05.1997 and the following
restructuring plan was approved -
i) Conversion of debt of Rs.994 crores in ECL, Rs.1180.70 crores in BCCL and Rs.86.40 crores in MCL
into equity.
ii) Reduction of equity by Rs.1000.80 crores in NCL, Rs.761.30 crores in SECL and Rs.413.90 crores in
WCL for simultaneous infusion of identical amounts as debt in these companies.
5.14 This restructuring plan was approved by the Ministry of Coal. Since the restructuring plan
involved reduction of equity in SECL, WCL and NCL, it was necessary to obtain the permission of the
Department of Company Affairs to reduce the equity in SECL, WCL and NCL under the provisions of the
Companies Act, 1956. The permission in respect of these three subsidiary companies of CIL has since been
received from Department of Company Affairs and the same has been notified in the Gazette of India.
5.15 CIL has taken necessary action to implement the internal capital restructuring on the lines of para
5.13 above.
WORKING RESULTS OF COAL INDIA LTD.

5.16 CIL and its subsidiary companies made a profit of Rs.1803.99 crores during the year 1997-98, and
Rs.1451.79 crores in the year 1998-99. This is against a profit of Rs.611.44 crores during the year 1995-96 and
Rs.29.73 crores during 1994-95 (before tax provision and investment allowance reserve). The company-wise
position is given below:-
WORKING RESULTS OF SUBSIDIARIES OF CIL

(Rs. in crores)
Name of the Subsidiary 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99
ECL (-)70.40 (-)108.47 154.67 (-)341.15 (-)541.89 (-)472.47
BCCL 21.56 (-)154.63 102.26 (-)322.81 (-)140.91 (-)442.34
CCL 62.06 (-)118.96 (-)1.43 (-) 15.52 (-) 85.67 (-)149.35
NCL 225.23 190.80 179.47 728.65 759.34 802.14
WCL 31.59 71.57 98.59 525.21 628.29 476.58
SECL 139.84 91.78 76.96 580.72 693.20 676.55
MCL 21.27 68.01 24.75 326.65 654.11 601.31
CMPDIL 2.64 2.77 3.37 2.91 3.30 0.63
CIL (incl. NEC/DCC stockyards) (-)33.47 (-)13.14 (-)27.20 442.06 540.82 606.20
Less dividend received from
subsidiaries & accounted for in (-)789.30 (-)706.60 (-)647.46
NEC /CIL
Overall (CIL) 400.32 29.73 611.44 1137.42 1803.99 1451.79
1) Accumulated losses of CIL which had peaked to Rs.2498.98 crores in 1990 -91 have come down to Rs. 1522.14
crores in 1998 -99.
2) In 1998-99 CIL and its subsidiaries paid a tax of Rs.942.85 crores and dividend of Rs. 90.41 crores as preference
dividend & Rs.25.27 crores as equity dividend.
WELFARE
5.17 The management of CIL and its subsidiary companies firmly believe that success and growth of
public sector coal mines largely depend on contented and motivated work-force. Manpower is the key
and crucial resource and their involvement and support are necessary for efficient and effective
functioning of non-human resources. Coal is a manpower intensive industry and at present, CIL and its
subsidiary companies have approximately a strength of 5.87 lakhs manpower. Welfare in CIL enjoys the
same importance as production, productivity and safety.
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PRE-NATIONALISATION SCENARIO
5.18 Coal mines are generally situated in isolated and far flung areas where the facilities of modern
life are lacking. At the time of nationalis ation, the quality of life - both at the working and living place of
the coal miners was very poor and unhygienic. The employees had to live in sub-optimal conditions.
The erstwhile private owners were not able to provide even the basic neces sities of life such as
housing, drinking water, medical facilities etc.
POST-NATIONALISATION SCENARIO
5.19 Soon after nationalisation, public sector coal companies embarked on massive drive to root out
the evils prevailing in the coal mines. The workmen were paid wages due to them as per Coal Wage
Board Award. Joint Bipartite Committee for the Coal Industry (JBCCI) was set up to negotiate and
decide new wage structures. At present the minimum monthly wages of a daily -rated workman as on
1.12.1999 is Rs.4587.28 per month against Rs.319.22 in 1975-76 and the minimum wages of a piece-rated
workman is Rs.4598.88 p.m. as against Rs.326.43 in 1975-76
5.20 Similarly, extensive welfare programmes were undertaken both at the working place and living
place. From the year 1975-76 to 1998-99, CIL and its subsidiaries have spent Rs.11066.77 crores (Rs.2194.53
crores as capital expenditure and Rs.8872.24 crores as revenue expenditure) on welfare measures for the
employees. The details of this are as follows:-
EXPENDITURE ON WELFARE ACTIVITIES
(Rs. in crores)
Year Capital Revenue Total
1975-76 12.23 14.22 26.45
1976-77 23.02 21.85 44.87
1977-78 25.49 29.69 55.18
1978-79 18.27 33.04 51.31
1979-80 18.52 46.14 64.66
1980.81 25.38 72.31 97.69
1981-82 40.96 98.48 139.44
1982-83 66.37 115.73 182.10
1983-84 67.22 152.54 219.76
1984-85 69.68 194.89 264.57
1985-86 100.42 196.55 296.97
1986-87 122.00 236.18 358.18
1987-88 108.77 284.60 393.37
1988-89 124.02 279.24 403.26
1989-90 82.20 316.42 398.62
1990-91 124.13 364.82 488.95
1991-92 113.90 454.92 568.82
1992-93 132.48 591.57 724.05
1993-94 167.20 621.80 789.00
1994-95 134.23 696.71 830.94
1995-96 136.00 890.19 1026.19
1996-97 154.00 984.67 1138.67
1997-98 176.00 1071.11 1247.11
1998-99 152.04 1104.57 1256.61
Total 2194.53 8872.24 11066.77
5.21 The coal companies are paying greater attention to the welfare of their workers. Every effort is
being made to improve the living conditions of the coal miners. The thrust is on improving the basic
necessities such as housing, water supply and medical care. Emphasis has also been laid on improving
the general environmental and ecological conditions in the coalfield areas.
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5.22 Welfare of coal miners has the same importance as production, productivity and safety. The
coal companies are paying greater attention to the welfare of their workers. The following table will
reflect improvements which have been achieved in respect of quality of life for the coal miners.
EMPLOYEES' WELFARE
Welfare Measures At the time of As on

Nationalisation 31.03.1998
Housing satisfaction (percentage) 21.07 66.53
Quantum of water supply (MGD) 11.72 111.06
Population covered under water supply schemes 2,27,300 23,36,032
Hospitals (Nos.) 49 86
Dispensary (Nos.) 197 438
Ambulance (Nos.) 42 695
Hospital beds (Nos.) 1482 5,929
Aided schools & colleges (Nos.) 287 1,248
Canteens (Nos.) 210 466
Co-operatives (Nos.) 177 319
HOUSING
5.23 At the time of nationalisation, there were only 1,18,366 standard and sub-standard houses. The
availability of these houses has increased to 4,00,138 as on 31.3.1999. The housing satisfaction has now
reached about 68.17%. The coal companies are making all out efforts to further improve these facilities.
WATER SUPPLY
5.24 As against only 2.27 lakh population having access to potable water at the time of nationalisation,
at present 23.46 lakhs population have been covered under water supply scheme. The quantum of water
supply have been increased to 111.09 MGD from 11.72 MGD during pre-nationalisation period. This was as
a result of the concerted efforts made by the coal companies.
HEALTH CARE & MEDICAL FACILITIES

5.25 CIL and its subsidiaries are extending medical facilities to the employees and their families through
various medical establishments starting from the dispensary level to the central and apex hospital in
different parts of the coalfields.
5.26 There are 86 hospitals with 5929 beds, 438 dispensaries, 714 ambulances, 1765 doctors including
specialists in CIL and its subsidiaries to provide medical services to the employees.
5.27 Besides, 26 Ayurvedic Dispensaries are also being run in the subsidiaries of CIL to provide
indigenous system of treatment to workers.
EDUCATION
5.28 The primary responsibility of providing educational facilities lies with the State Governments.
However, CIL on its part, has been providing financial assistance to certain schools like DAV Public
Schools, Kendriya Vidyalaya, DPS School and other educational institutions run by the State Government.
In addition, as part of its community development programme, CIL and its subsidiary companies are also
providing financial assistance by way of grant-in aid to certain privately managed schools functioning in
and around coalfield areas.
5.29 At present 1254 educational institutions are functioning within the operational areas of CIL's
subsidiary companies against 287 at the time of nationalisation.
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OTHER WELFARE ACTIVITIES
5.30 The subsidiaries of CIL are running 466 canteens, 319 co-operative institutions and 91 creches 244
Bank branches including extension counters are also available in the coalfield areas to cater to the needs of
the miners.
TREE PLANTATION / AFFORESTATION
5.31 The subsidiaries of Coal India Limited have been undertaking the job of regular development of
green belts on waste and reclamation of land. During the year 1998-99, the coal companies have planted
63.08 lakhs of seedlings in the mining areas to provide better environment.
SAFETY
5.32 One of the primary objectives of nationalisation of coal mines in India was to bring about an
improvement in the safety scenario which has been embodied in the mission of Coal India Limited. With this
in view the safety policy of Coal India Limited has been formulated and implemented. Coal India Limited has
also created an Internal Safety Organisation in each subsidiary as well as the holding company level. As a
result of sustained thrust on improvement in the safety scenario by implementation of various safety
measures it has been possible to bring down the number of fatalities, serious injuries and the rates of fatality
and serious injury per million tonne of coal produced progressively from 233 fatalities in 177 accidents in
1975, the year of formation of CIL, to 98 fatalities in 89 accidents in 1999.
5.33 In order to bring about a continuous improvement in the safety scenario the following measures
were adopted :
5.34 Thrust on DISASTER PREVENTION through
(i) Repeated Safety Audit of mines and continuing implementation of the recommendations
of the same and monitoring thereof. Third Safety Audit of mines is almost completed.
(ii) Priority inspection of highly gassy (degree III) mines and fiery mines by ISO officials and
follow up corrective action for removal of deficiencies.
(iii) Environmental Monitoring of degree-III gassy and fiery mines to take corrective action
before dangerous situation can build up by constant vigil and monitoring the parameters
which are indicative of accumulation of inflammable gas or the progress of heating leading
to a possible outbreak of fire.
(iv) Measures against possible dangers of inundation of underground mines are being taken
like strengthening of embankments, barriers, diversion of jores etc.
5.35 Monthly review of safety performance of the companies in CMDs meets with analysis of each and
every a ccident and formation/ revision of strategies for their prevention.
5.36 Increased thrust on use of scientific methods of roof support through Rock Mass Rating based
support plans for mines and roof bolting systems of support especially in the freshly exposed roof area.
5.37 Exercise for standardisation of manufacture of quick setting cement capsules in collaboration with
Central Mining Research Institute underway.
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5.38 Examination of Annual Operation Plans of mines by the Internal Safety Organisation (ISO) of the
companies.
5.39 Safety clearance of production districts before commencement of operations.
5.40 A major thrust on inspections of the mines by officials of the ISO of CIL as well as subsidiary
companies in addition to inspections by trade union representative members the CIL Safety Board, the
Standing Committee on Safety in Coal Mines, the Workmen’s Inspectors and the mine level Safety
Committees.
5.41 Monthly monitoring of the Safety Status of all mines of CIL on a computerised database report
(SSR – I AND SSR – II) and thrust on rectification of deficiencies observed.
5.42 Training and retraining of the workers, supervisors and officials of the mines through VTC, HRD,
etc.
5.43 As accidents are by definition unplanned uncontrolled incidents resulting in loss of life or damage
to property no forecast can be made. However, with the implementation of the above safety measures it is
expected that the number of fatalities will be reduced to below that in the current year which is the best
performance in the history of CIL.
__________________
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Coal India

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CHAPTER-V

COAL INDIA LIMITED

Approved by NDC : Rs.12401.00 crores

SUBSIDIARY-WISE INVESTMENT OF PLAN FUNDS

COAL OFFTAKE AND PIT HEAD STOCKS

COAL OFFTAKE AND PITHEAD STOCKS

CAPITAL RESTRUCTURING OF COAL INDIA LIMITED

WORKING RESULTS OF COAL INDIA LTD.

WORKING RESULTS OF SUBSIDIARIES OF CIL

Welfare Measures At the time of As on

HEALTH CARE & MEDICAL FACILITIES

TREE PLANTATION / AFFORESTATION

5.34 Thrust on DISASTER PREVENTION through

5.39 Safety clearance of production districts before commencement of operations.

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