STRATEGICPLAN MINISTRYOFCOAL

Issued:10thFebruary,2011

INDEX
Section 1 2 3 4 5 6 7 8 Subject CorePurpose,Aspiration AssesstheSituation Strategies ImplementationPlan LinkagebetweenStrategicPlanandRFD InterDepartmentalandCrossfunctionalIssues MonitoringandReviewingarrangements PotentialChallengeslikelytobeAddressedinthe 12thPlan Page 1 2 6 13 30 31 34 35

 Section1 CorePurpose ToenabletheCoalSectorinthesustainable,efficientandeconomicalexploitationofitscoalresources including reliable assessment, coordinated development of the coalfields and efficient project management, through the participation of PSUs & the private sector, with the aim of providing the primaryenergysourceinthecountrysoverallenergymatrixwhiletakingaproactiveroleinfacilitating the development of clean coal technology and maintaining the coal sectors competitive advantage in thecountrysenergymix. Aspiration 1.ToenhancecoalproductionthroughgovernmentPSUsbytakingupnewprojects/expandingexisting projectsaswellasthroughthecaptiveminingroute. 2.Toaimatsupplyofadequatequantityofqualitycoaltomeetthedemandofallsectorsatreasonable prices. 3. To adopt stateoftheart technology and clean coal technology in coal mining with a view to improvingproductivity,safety,qualityandtheecology. 4.Toexpeditebringingalltheavailablecoalresourcesinthecountryintotheprovedcategorythrough detaileddrilling. 5.Tomechanise,moderniseanddevelopnecessaryinfrastructureofrailnetwork,portsandroadsfor efficientandspeedyevacuationofallthecoalproduced. 6.Toacquireanddevelopcoalassetsabroadinkeepingwiththeenergysecurityneedsofthecountry.

 Section2 AssesstheSituation 1. Understandandassessexternalfactorsthatwillimpactus

(i) (ii) (iii) (iv) (v) (vi)

(vii) (viii) (ix)

Demandofcoalfromvarioussectors. PolicyofMinistryofEnvironment&ForestinrespectofEnvironmentandForestryclearance fortheimplementationofcoalproductionprojects. PolicyandcooperationofcoalproducingstateGovernmentsinrespectoflandacquisition andresettlement&rehabilitationofprojectaffectedfamilies. Law&ordersituationinthecoalbearingstates. Policies and targets of the Ministry of Power, Ministry of Steel, Department of Industrial Policy&Promotionetc.inrespectofuseofcoal. Policies and expansion programmes of the Ministries providing logistic support for transportationofcoali.e.MinistryofRailways,MinistryofShippingandMinistryofSurface Transport. Availabilityofcoalanditspricesintheinternationalmarket. Availabilityofcoalminingmachinery,equipments,spares,explosivesetc. Adoption of clean coal technology by Indian coal mining companies and policies relating thereto.

2. Identifykeystakeholders,theircoreagendaandbasisofworkingtogetherwiththem Sl. 1. KeyStakeHolders CoreAgenda Consumers of coal i.e. power Togetsupplyofrequiredquantityandqualityof sector, steel industry, cement coalaspertheirscheduleatreasonableprice. industry, sponge iron and other small and medium enterprises consumingcoal. Logistic providers i.e. Ministry of Railways,MinistryofShippingand Ministry of Surface Transport, Ministry of Defence, Ministry of Power. Coal producing state Governments Optimum utilization of infrastructure provided bythem.

2.

3.

4.

5.

Mining of coal to provide employment and revenuestotheStateintheformofsalestaxand royalties. Captivecoalblockallocattees Facilitating them in acquiring land and for obtaining various statutory clearances and approvalsforimplementationofthecoalmining projectsandlinkedenduseplants. Manufacturers and suppliers of Supplyofminingmachineryoflatesttechnology 2

6.

7.

8.

9. 10.

available worldwide customised to suit the Indianmininggeologicalconditions. Meeting the energy requirement of the industriesinacosteffectivemanner.Protection of interests of members and conducive environmentfordevelopmentofindustries. Employee Unions and staff Welfare of staff, their career development, associationsincoalcompanies protection of their rights and grievance redressal. Contract workers engaged by Conducive working environment, safety and private companies and reasonablewages. transporters Peoplelivingnearminingarea Tosafeguardtheirlivelihood,healthandavenues fortheirsocialandeconomicdevelopment. Ministry of Environment and To protect green cover and ensure minimal Forest impactontheenvironment.

coal mining machinery and equipments,explosivesetc. Associationofcoreconsumersviz. FICCI,CII,ASSOCHAMetc.

3. Keycomponentsforworkingwiththestakeholders:

(i) Encouraging and facilitating coal companies to formulate an action plan for short term, mediumtermandlongtermsupplyofcoaltothevarioussectors. (ii) A detailed import plan to be formulated incorporating, inter alia, the identified source(s), quantity,distributionpattern,shippingandunloadingandlogistics,pricingetc. (iii) To encourage and facilitate the coal companies in formulating policy for other consumers, (otherthansteel,sponge,andcement)andtoputinplaceanefficientinstitutionalmechanism forimplementationofthesame. (iv) I.T. based solution and platform for on line implementation and monitoring of distribution of coalwithanobjectivetominimizehumaninterface. (v) Toencourageandfacilitatecoalcompaniesindevelopingandoperatingafairandtransparent consumer grievance reversal system to minimize consumers disputes and litigations and improveconsumerssatisfaction. (vi) Toencourageandfacilitatecoalcompaniesindevelopingrobustdepartmentaltransportsystem including mechanisation, modernisation and development of necessary infrastructure of rail network,portsandroadsforefficientandspeedyevacuationofallthecoalproduced. (vii) Toencourageandsupportcoalcompaniesinsettingupwasheriessoastosupplyonlywashed coaltoallnonpitheadconsumerswashedcoal. (viii) To have sufficient infrastructural facilities and mining technology for ensuring supply of only crushedcoaltoallconsumerswhodesirecrushedcoalandspeciallytopowersectorconsumers. (ix) Tofasttrack identificationandexploitationof speciallycokingcoalandlowashthermal coalfromsomeoftheabandoned/closed/unexploitedmineswithaviewtoaugmentsupplies intheleastpossibletime. (x) To pro actively pursue acquisition of coal source/assets abroad for securing long term coal suppliestothecountryinordertoaugmentdomesticavailability. (xi) Confidencebuildingwithemployees/workforce. (xii) Todeveloptechnologyformaximumexploitationofcoalreserveswithminimumenvironmental impact.

(xiii) EffectiveimplementationofR&Rpolicyasapplicabletoallcoalcompaniesandimplementation of corporate social responsibility schemes to build confidence among the project affected personsandlocalpeople. (xiv) Tocreateconduciveandsafeworkingconditionsforemployeesandcontractworkersandtake measuresfortheirwelfare. (xv) Facilitatingenvironmentandforestryclearances,landacquisitionforthecoalblockallocatees. (xvi) Tohavecontinuousinteractionwithallstockholdersseekingtheirsuggestionsandconsidering themwhileframingpolicies/makingdecisions.

4. SWOTAnalysis:

Strengths: Adequatereservescoalreservesuptothedepthof1200metershavebeenestimatedat 277billiontonnesason1.4.2010andlignitereserveshavebeenestimatedat39.07billion tonnesason31.3.2009. Proved110billiontonnes,Indicated130.65billiontonnes,Inferred35.6billiontonnes (ii) Hugeworkforcecomprisingofexpertandhighlyskilledmanpowerisavailablewiththecoal companies(CILandNLC). (iii) Proven expertise of CIL and NLC in production of coal and lignite and power generation respectively. (iv) Adequateandrisingdomesticdemandforcoal. (v) Alargenumberofcoalbasedpowerplantsneedingcoalonsustainedbasis. (vi) Sound financial condition of the coal companies having adequate fund and cash reserves. Allthecoalproducingcompaniesareprofitmaking. (vii) NavRatnaandMiniRatnastatusofthecoalcompaniesautonomyfortakingdecisions. (viii) Coalreservesareavailableatrelativelyshallowdepthwhichcanbeeasilyextractedbycost effectiveopencastminingmethods. Weaknesses: (i) (ii) (iii) (iv) (v) (vi) PoorqualityofthermalcoalavailableinIndiamostlyEandFgradecoal. Inadequateextractablereservesofcokingcoal. LowproductivityincoalminesoperatedbyCIL. Coalsectorisyetnottrulyopenupforcommercialmining. Lackofadequateinfrastructureforspeedyevacuationofcoalproduced. CoalreservesareavailablemostlyintheeasternpartofIndiawhereasthedemandofcoalis throughout India. This leads to high transportation cost of coal or higher transmission lossesofpowergeneratedatpitheadpowerplants. (vii) Longtimetakeningettingtheenvironmentandforestclearancefornewcoalprojects. (viii) Problemsinlandacquisitionandrehabilitation&resettlement. (ix) LawandorderprobleminEasterncoalproducingstates. (x) Constraints in exploration of coal Out of 277 billion tonnes geological reserves, only 110 billiontonnesreservesareinprovedcategory. (xi) Problemsandconstraintsinundergroundmininguseofoldtechnologylabourintensive processesforminingandsafetyissues. Opportunities: 4 (i)

 (i) A fast growing economy offers a huge domestic market (with relatively inelastic demand) for coal. (ii) Bulkofpowergenerationiscoalbasedandlikelytoremainsointheforeseeablefuture. (iii) Asotherenergysectorsviz.oilandgas,poweretc.havebeenopenedup,openingupofcoal sectorforprivateinvestmentwillgiveabigboosttothesector. (iv) Widegapbetweenthepriceofdomesticcoalandthatintheinternationalmarketshouldgive comforttodomesticindustryandencouragehigherinvestmentinthesector. Threats: (i) Delays in obtaining statutory clearances (environment and forest) and land acquisition cause delaysinthecommissioningofnewcoalproject. (ii) LawandorderprobleminsomeoftheEasternStatescanadverselyimpactcoalproductionand movement. (iii) Delayinthedevelopmentofcoalblocksallottedtonewplayers(bothpublicandprivatesector) wouldplaceintensepressureonpublicsectorcompanies. (iv) Oppositionfromvariousquarterstotheopeningupofcoalsectortoprivatesectorinvestment forcommercialminingwillimpedespeediergrowthofthesector. 5. Definethecorelearningagenda:

Adoption of latest international practices and bench marks in coal mining techniques and managementbythecoalcompaniesandpolicymakers. (ii) Adoption of stateoftheart technologies in coal mining, particularly covering the areas of undergroundmininglikelongwalltechnology,continuousminertechnology,etc,safetyand explorationandspeedyevacuationofcoal. (iii) Adoptionofcleancoaltechnologiesi.e.UndergroundCoalGasification,CoalBedMethane, CoalMineMethaneandCoaltoLiquidtechnologies. (iv) Latest underground mining technology for extraction of coal from deep seated and steep seams. (v) Creatingfacilitiesforcosteffectivecoalbeneficiation. (vi) Modernising and expanding existing infrastructure and creating new world class infrastructureforhumanresourcedevelopment. 6. Methodologyforcorelearningagenda Thecorelearningprocesscanbeachievedbyparticipationofconcernedofficialsofcoalcompanies intheinternationalandnationalworkshopsandseminarsrelatingtostateofthearttechnology, safety, exploration and clean coal technology. This can also be further augmented through participation in various bilateral and multilateral fora with the foreign countries. Institutions engagedinabovecorelearningactivitieswillalsobepromotedtointeractwiththeircounterpartsin thedevelopedcountriesutilizingthetechnology.

(i)

 Section3 Strategies Aspiration1:EnhancingCoalProductionbytakingupnewprojects/expandingexistingprojectsaswell asthroughtheCaptiveMiningRoute Strategy 1.Faster Land Acquisition and statutoryclearances StrategicPlan Priority Sequence Medium Influence Medium

a. To take initiative for High constitution of an Inter Ministerial Committee with representation of key Ministries and State Governments for expediting Land Acquisition, Environment&Forestclearances. b. Formation of a Coordination High cumMonitoringCommitteeatthe Statelevelhavingrepresentatives from State Government (all concerned departments), Coal CompaniesandMinistryofCoal. c. To ensure adequate R&R High measures in conformity with the National R&R Policy and State GovernmentR&RPolicies. d.Toensureacquisitionoflandto High the extent required and its optimalutilisation.

Short

Low

Medium

Medium

Medium

High

e. To Ensure adequate High compensation by suitable amendment to CBA (A&D) Act 1957. 2.Enabling & a. To encourage and support High sustaining high adoption of state of the art growthincoalsector technologies for both open cast and U/G Mines and formulate a comprehensive action plan including bench marking and productivityofequipment. b. Promoting and incentivising High U/G coal mining through policy initiatives. c. Promoting development of High cokingcoaldeposits

Long

Low

Medium

High

Medium

Medium

Medium

Medium

d. Close Monitoring to ensure High faster development of captive coal blocks through active involvement of State Governments. e. Promoting exploitation of coal High from abandoned mines through appropriate technologies with strategicpartners. f.Identificationofnewcoalblocks High for allotment to CIL and captive consumers. g. Formulation of Policy for Medium regulating construction over coal bearingareas. h. Supporting and encouraging High coal companies to augment coal production by using outsourcing mode where the departmental capacityisinadequate. i. Constitution of an inter Medium ministerial expert group for reviewing and identification of provisionsofCoalMiningStatutes needingamendments. j. To facilitate removal of entry High barriers in coal mining for openingupthecoalsector. 3. Enhancing Power a.SupportingNLCtoventureinto High Generation / Lignite new Lignite / Coal based Power Production by taking ProjectsthroughJV/PPPmode. upnewprojects b. Encouraging NLC to diversify Medium into the field of Renewable energy.

Medium

Medium

Long

Medium

Medium

High

Medium

Medium

Short

High

Short

Medium

Long

Low

Medium

High

Medium

High

 Aspiration 2: Supply of Adequate quantity of quality coal to meet the demand of all sectors at reasonableprice Strategy 1.Effectivecompliance of Fuel Supply Agreement (FSA) regime StrategicPlan Priority Sequence Medium Influence High

a. To ensure that the coal High companies bring all linked consumersunderFSAregime. b. Promoting dispute resolution High through FSA implementation committee. c.IntroductionofITenabledSales Medium Management System to reduce humaninterface.

Short

High

Medium

Medium

2.Meeting normative requirement through indigenousproduction and if required, throughimport 3. Improvement in coal quality through improved mining processes & coal preparation mechanism

a. To facilitate, promote and High encouragetimelyproduction. b. Formulation of a High comprehensive Import Plan of CIL based on demand supply assessment. a. Ensuring Supply of High washed/crushedandsizedcoalto consumers as per their requirement. b.Supportingandencouraginguse High of appropriate mining practices like surface miners, selective mining, picking/shoveling from hard platform, separating OB and coalfacesetc Formulation of a comprehensive High coal beneficiation policy based on optimal level of washing and statutorycompliances.

Short Medium

Medium Medium

Medium

Medium

Medium

High

4. Appropriate measures for reduction in ash content to improve quality and reduce transportationcost. 5. Institutional mechanism for consumer satisfaction and quality assurances

Short

High

a. Fast tracking the process of High settingupofCoalRegulator. b. Developing IT based grievance High redressalsystem. c. To consider rationalization of High existing sources of coal supply with a view to reducing transportationcostfortheexisting

Medium Medium Medium

Low High High

consumers. 6.Preventionofcoal Constitution of a Task Force High pilferage involving concerned State Governments. 7. Creation of To create a Savottam Compliance High Savottam Compliant System(a)Toimplement,monitor System and review Citizen Charter (b) Redress and monitor public grievances. Medium Medium

Short

High

Aspiration3:Toadoptstateofthearttechnologyandcleancoaltechnologyincoalminingwithaview toimprovingproductivity,safety,qualityandtheecology Strategy 1. Encouraging development of large mines with higher capacity equipment & adopting international best practices StrategicPlan Priority Sequence Medium Medium Influence Medium Medium

a. Adopting global best mining High practices&benchmarking. b.ExploringfeasibilityforFasttrack High clearances for mega mines (more than5.0MTY). c. Promoting introduction and High adoption of GPS based Fleet Management System in high capacityopencastmines.

Medium

High

2.Time bound roll Expediting ERP implementation in High out of IT enabled coalcompanies. MISsystemforCIL 3.Promoting supporting training/skill upgradation bridgeskillgap & a. Encouraging coal companies to High set up new training institutes and forensuringcompulsorytrainingfor to own and outsourced employees for upgradation of skills with regard to contemporary technologies and processes. b. Promoting the setting up of High specialised technical/ vocational traininginstitutesbycoalcompanies including enhancing the intake capacity to meet requirement of skilledmanpower. c.Encouraginguseofsimulatorsfor High trainingincoalcompanies. Formulation of expert group to High 4. Advance technology and study & identify for introduction of integrated safety practices for advanced

Medium

Medium

Short

Medium

Medium

Medium

Medium Medium

Medium High

monitoring system using remote minimising accidents in coal control&appropriatetechnology. mines 5.Controloffireand Implementation of master plan High subsidence in Jharia dealing with fire, subsidence, andRaniganj rehabilitation and diversion of surface infrastructure in Jharia and Raniganjcoalfields. 6. Promoting capture and commercial exploitation of Coal Mine Methane/Vent AirMethane 7. Development of Underground Coal Gasification Long Medium

Formation of an Expert Group for Medium Medium promoting capture and commercial exploitation of Coal Mine Methane/VentAirMethane

High

Proactive measures to encourage, Medium Medium facilitate and create enabling environment for commercial exploitationofUCGinIndia.

Medium

8. Promoting clean A road map for gradual switchover Medium Medium coal technology in to clean coal technology will be coalmining prepared by constituting a task force. 9. Preservation of Setting up of an inter ministerial Medium Medium ecology task force for detailed study of impact of mining operation on ecology and study of effectiveness ofmineclosureplan. 10.R&D Promote applied research in coal High sector for improving production, productivity,qualityandsafety. Medium

High

Medium

High

11. To imbibe and implement new technologies in the field of Lignite Production/ Power Generation

a. Introduction of super critical Medium Medium boilers / other new technologies in theNewpowerplantsforimproving operationalefficiency. b. Exploring the possibilities of Medium Long alternate mining technology to exploitdeepseatedligniteresources such as Coal Bed Methane, Under GroundCoalGasificationetc.,

Medium

Medium

10

 Aspiration4:Toexpeditebringingalltheavailableresourcesinthecountryintotheprovedcategory throughdetaileddrilling Strategy 1.Fast tracking & modernising coal resource assessment for sustaining higher growth in coal production StrategicPlan Priority a. To prepare a detailed action plan High for increasing exploration capacity of CMPDIL & other agencies and to take upafeasibilitystudyforusingmodern tools of exploration like surface geo physical method and applying principles of the new science of geo statistics and to study the proving of deep seated coal resources in the country. b. To pursue request for amendment High inguidelinesissuedbyMOEFof1520 boreholes per 10 sq. k.m. to 1520 boreholespersq.km. c. To explore the feasibility for High exemption of CMPDIL from requirement of notification of exploration block, like MECL,GSI,AMD etcundersec4ofMMDRact d.Toexplorethepossibilityofsetting High up a Speedy & smooth funding mechanism for taking up detailed exploration in nonCIL coal blocks as wellasforpromotionalexplorationto betakenupbyGSI,MECL&CMPDIL. Sequence Short Influence High

Medium

Low

Short

Low

Medium

Medium

e. Constitution of a dedicated cell in Medium Medium CMPDIL to facilitate the captive coal block allottees for detailed exploration.

Medium

Aspiration5:Tomechanise,moderniseanddevelopnecessaryinfrastructureofrailnetwork,portsand roadsforefficientandspeedyevacuationofallthecoalproduced. Strategy 1.Promoting Integrated development of coal mines and evacuation infrastructure Priority Sequence a. To promote and encourage Medium Long development of feeder railway line/ MGR/ Conveyer Belt for linking coal projects with the proposed Dedicated Freight StrategicPlan Influence Medium

11

Corridor(DFC). b. Empasising the need for High strengthening existing MGR systems for pit head power stations. c. To coordinate efforts with High railways for increasing supply of rakes at sidings in need and to pursue with railways for introduction of high capacity rakesforcoaltransportation. d. Promoting & strengthening of High evacuation system in coal companies for seamless transfer of coal from pit head to siding & its loading and to encourage & support improvement of roads, culverts, bridges in existing miningareas e. To pursue with concerned High ministry for development of port capacity/facility to handle import of coal planned by Coal India Limited. 2. Speedy execution of Railway Projects already in pipeline for evacuationofCoal ToholdregularmeetingsofInter High Ministerial Coordination Committee set up for monitoring speedy execution of Railway projects. Medium Medium

Medium

Medium

Medium

Medium

Medium

Low

Short

Medium

Aspiration6:Acquireanddevelopcoalassetsabroadfortheenergysecurityneedsofthecountry Strategy 1. To facilitate and coordinate acquisition of coal assets abroad by govt.coalcompanies StrategicPlan Priority Sequence Short Influence High

a. Preparation of a detailed High roadmap for acquisition of coal assets/resourcesabroad. b. Leveraging bilateral and High multilateral relations for coal assetsacquisition.

Medium

Medium

12

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Section4 ImplementationPlan Aspiration1:EnhancingCoalProductionbytakingupnewprojects/expandingexistingprojectsaswellasthroughtheCaptiveMiningRoute StrategicPlan Buildadetailedimplementationplan Resource requirement Trackingandmeasurement forthechosenstrategy No financial resources Once a Committee is formed, are required for this meeting will be convened once infourmonths. purpose.

Strategy1.FasterLandAcquisitionandstatutoryclearances a.Totakeinitiativeforconstitutionof MOC to take up with concerned State an interMinisterial Committee with Governments and key Ministries for formation of representation of key Ministries and Inter Ministerial Committee under the State Governments for expediting Chairmanship of AS (Coal) by 30.06.2011. Land Acquisition, Environment & Committeetobeformedby30.09.2011. Forestclearances. b. Formation of a Coordination cum MOC to take up with State Governments Monitoring Committee at the State concerned for formation of State level level having representatives from Coordination cum Monitoring Committee by State Government (all concerned 30.06.2011 departments), Coal Companies and State Governments to form the Committee by MinistryofCoal. 31.12.2011 c.ToensureadequateR&Rmeasures CIL R&R Policy 2008 was amended in accordance in conformity with the National R&R with the provisions of National R&R Policy. Policy and State Government R&R HoweverfurtheramendmentintheCILR&RPolicy isinprocessofmakingtheR&Rpolicymoreliberal Policies. by taking into account the R&R Policy of State Governments. The revised R&R policy of CIL would be finalised andpublishedby31.12.2011. d.Toensureacquisitionoflandtothe CIL has already been asked to issue guidelines to extent required and its optimal its subsidiaries to estimate the requirement of land to the minimum extent possible and to utilisation. ensure its optimal utilisation while preparing the feasibilityreportforthecoalprojects. CILtoissuetheguidelinesby30.12.2011.

No financial resources JS (LA) will be the nodal officer are required for this in this regard. Progress will be purpose. monitored and reviewed quarterlyatMOC.

This activity will be funded by the coal companies.

Quarterly feedback/status would be obtained from the CIL. Director (PRIWI) in the Ministry of Coal will be the nodalofficerinthisregard.

feedback/status No financial resources Quarterly are required for this would be obtained from the CIL. purpose. Director (PRIWI) in the Ministry of Coal will be the nodalofficerinthisregard. 14

e. To Ensure adequate compensation ForamendmenttotheLandAcquisitionAct1894, No financial resources by suitable amendment to CBA (A&D) Rehabilitation & Resettlement Bill 2010 and the are required for this Land Acquisition (Amendment) Bill 2010 drafted purpose. Act1957. by the Ministry of Rural Development are under considerationoftheGovernment. After passage of the above Bills, action would be taken by the Ministry of Coal for suitable amendmentintheCBA(A&D)Act1957. 2.Enabling&sustaininghighgrowthincoalsector a.Toencourageandsupportadoption This is a continuous process. Already new mines This activity will be of state of the art technologies for are being planned with state of the art funded by the coal both open cast and U/G Mines and technologies in the subsidiary companies of CIL, companies. formulate a comprehensive action SCCLandNLC. plan including bench marking and Coal companies will be directed to prepare a productivityofequipment. comprehensive action plan in this regard by 30.06.2011andtosubmitthesameby31.12.2011. Once the action plan is prepared implementation willbecompletedby31.03.2016. It is proposed to form an Expert Committee by 30.06.2011 to look into the issue and come out with recommendations by 31.12.2011 for consideration of Government. The recommendationswillbeexaminedandpolicywill befinalisedby31.12.2012. It is proposed to form an expert Committee to No additional resource b. Promoting and incentivizing U/G coalminingthroughpolicyinitiatives. look into the issue and come out with requirement is needed recommendations. Formation of expert inthisregard. Committee to be completed by 30.06.2011 and the Committee to make available their recommendationsby31.12.2011forconsideration of Government. The recommendations will be examined and policy will be finalised by 31.12.2012.

Periodical feedback/status would be obtained from the MinistryofRuralDevelopment. Director (PRIWI) in the Ministry of Coal will be the nodalofficerinthisregard.

Adviser (Projects) will be the nodal officer in this regard. Quarterlyproject/performance review meetings under Secretary (Coal) would also cover the aspects of technological upgradation in coalsector.

Adviser (Projects) will be the nodal officer in this regard. Progress willbe monitored and reviewedquarterlyatMOC.

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Coal Controllers Organisation collects the information and submits the same to the Ministry. Based on which a comprehensive status report is prepared. Review Meetings are periodically held and appropriate actions against the nonperformersaretaken. States to forward the minutes ofthemeetingstotheMinistry fortakingfurtheraction. Ministrys representative to attendallsuchmeetings. A time schedule for various stepstobetakenhasalsobeen prepared as a benchmark against which the progress of the captive coal blocks would beassessed. e.Promotingexploitationofcoalfrom ActionalreadyinitiatedbyCIL.Tenderingprocess This activity will be Adviser (Projects) will be the abandonedminesthroughappropriate to be expedited by them. It is proposed to funded by the coal nodal officer in this regard. technologieswithstrategicpartners. completethetenderingprocessby31.12.2012. companies. Progress willbe monitored and reviewedquarterlyatMOC. Coal Controller Organisation mandated to do close monitoring of development of coal blocks. For this, CCO wouldbestrengthened. No additional requirement of resources. 16

c. Promoting development of coking It is proposed to form an expert Committee to look into the issue and come out with coaldeposits recommendations. Formation of expert Committee to be completed by 30.06.2011 and the Committee to make available their recommendationsby31.12.2011forconsideration of Government. The recommendations will be examined and policy will be finalised by 31.12.2012. d. Close Monitoring to ensure faster (i)MinistryofCoalhassetupaReviewCommittee development of captive coal blocks under the Chairmanship of Additional Secretary through active involvement of State (Coal) to review the progress of development of coal/lignite blocks and the associated end use Governments. plants.Twomeetingswillbeheldinayear. (ii) To pursue States to constitute a State level Committee under the Chairmanship of Chief Secretary of the State concerned to review the progress of allocated coal/lignite blocks in the states. LettertoChiefSecretariesby30.04.2011. Constitution of the committees by States by 31.10.2011. One meeting in the 1st year (by 31.03.2012) andatleasttwomeetingeveryyear.

No additional resource Adviser (Projects) will be the requirement is needed nodal officer in this regard. Progress willbe monitored and inthisregard. reviewedquarterlyatMOC.

f.Identificationofnewcoalblocksfor The process of identification of coal blocks is a No additional resource allotment to CIL and captive continuous process which is done from time to required. timeinconsultationwithCMPDILandCIL. consumers. Blocking of regionally explored areas on a continuousbasis. Keeping blocks for CIL and balance for allocation. End usewise and dispensationwise earmarking of identified block for allocation basedongradeandreserves.

g. Formulation of Policy for regulating constructionovercoalbearingareas.

h. Supporting and encouraging coal companies to augment coal productionbyusingoutsourcingmode where the departmental capacity is inadequate. i. Constitution of an interministerial expert group for reviewing and identification of provisions of Coal MiningStatutesneedingamendments.

Identified blocks to be placed/offeredforallocation. Identified blocks for allocation would be allocated within two yearsofidentification. For monitoring of procedure of identificationandearmarkingof blocks for allocation, a committee under the chairmanship of Secretary (Coal)withallconcernedwould besetup. It is proposed to form an Expert Committee by No additional resource JS(C)willbethenodalofficerin 30.06.2011 to look into the issue and come out requirement is needed this regard. Progress will be with recommendations by 31.12.2011 for inthisregard. monitored and reviewed considerationofGovernment. quarterlyatMOC. Thisisacontinuousprocess.Outsourcingmodeis This activity will be Adviser (Projects) will be the already in practice in the coal companies mainly funded by the coal nodal officer in this regard. Progress willbe monitored and on the considerations of productivity, efficiency companies. reviewedquarterlyatMOC. and economics. However, a balance needs to be maintained between departmental and outsourcedoperations. MOCtoidentifyconcernedministries/expertsand take up with them for formation of the Inter MinisterialExpertGroupby30.06.2011. Amendments required on priority, would be finalisedbytheconcernedsectionsandthegroup by31.03.2012.

This activity will be funded by the coal companies.

Quarterly meetings will be convened after formation of thesaidgroup. JS (Coal) will be the nodal officerinthisregard.

j. To facilitate removal of entry To pursue the clearance of Coal Mines No resource required at Quarterlyreviewatthelevelof JS(Coal). barriers in coal mining for opening up (Nationalisation) Amendment Bill, 2000 in Ministry. thecoalsector. Parliament. 17

3.EnhancingPowerGeneration/LigniteProductionbytakingupnewprojects a.SupportingNLCtoventureintonew JV with MCL and Hindalco already formed. (Coal Lignite / Coal based Power Projects block already allotted, to obtain necessary clearancesby31.12.2011) throughJV/PPPmode. To form a JV with Uttar Pradesh Rajya Vidyut UtpadanNigamLimited(UPRVUNL). (To finalise MOU with Government of UP by 30th June2011) b. Encouraging NLC to diversify into To set up a 50 MW Wind Farm Project (to place thefieldofRenewableenergy. order by 30th June 2011, Project to go on stream by31stMarch,2012)and To set up a 25 MW Solar Photo Voltaic Power Project (to prepare feasibility report and seek approvalby30thJune2011,toplaceorderby31st December,2011andtocommissiontheprojectby 31stDecember,2012)

No resource requirementatMinistry. Thefundswillbemetby NLC for these new projects. As far as MOC is concerned, no separate resource requirement exist.

JS(C)willbethenodalofficerin this regard. Progress will be monitored and reviewed quarterlyatMOC.

JS(C)willbethenodalofficerin this regard. Progress will be monitored and reviewed quarterlyatMOC.

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Aspiration2:SupplyofAdequatequantityofqualitycoaltomeetthedemandofallsectorsatreasonableprice StrategicPlan Buildadetailedimplementationplan Resource requirement Trackingandmeasurement forthechosenstrategy Thereisnorequirement JS (LA) will hold quarterly meetings with ofresources. coal companies to review the status of conclusionofFSAs. DS(CPD)willbetheNodalOfficer.

1.EffectivecomplianceofFuelSupplyAgreement(FSA)regime a. To ensure that the coal Out of 1653 valid linked consumers, Fuel companies bring all linked Supply Agreements with 1587 consumers consumersunderFSAregime. have already been concluded by the concernedcoalcompanies.Itisproposedthat by31.12.2011,allFSAswouldbeconcludedby thecoalcompanies. b.Promotingdisputeresolution FSA Monitoring Implementation Committee through FSA implementation for power sector already constituted. Coal committee. companies are in the process of setting up mechanism to redress the grievances of FSA consumers of cement sector, which will be done by 30.06.2011. Coal companies will be asked to set up similar Grievance Redressal Mechanism for the consumers of other sectors.

Thereisnorequirement FSA Monitoring Implementation ofresources. Committee under the Chairmanship of Additional Secretary, Ministry of Coal will hold quarterly meetings to monitor the implementationofFSAswithpowersector. Coal companies will be directed to hold quarterly meetings to monitor the implementationofFSAsandforresolution oftheirdisputes,ifany. DS(CPD)willbetheNodalOfficer. c. Introduction of IT enabled CIL will set up a computerized system in all This activity will be JS (LA) will hold meetings once in every Sales Management System to coal companies and CIL Headquarters by funded by the coal four months to monitor the progress, till companies. 31.03.2013(ThiswouldbeapartofERP). reducehumaninterface. thetimeasystemisputinplace. DS(CPD)willbetheNodalOfficer. 2.Meetingnormativerequirementthroughindigenousproductionandifrequired,throughimport a. To facilitate, promote and CIL will prepare an Action Plan for improving This activity will be AS (Coal) will hold meetings once in every months to monitor the encouragetimelyproduction. production by 30.09.2011. Implementation of funded by the coal four implementationoftheActionPlan. companies. theActionPlanbyCILby3o.09.2013. DS(CPD)willbetheNodalOfficer. Additional Secretary (Coal) would hold b. Formulation of a CIL will be directed to prepare the Nofundsrequired. meetings to review the position once in comprehensive Import Plan comprehensive Import Plan which will be fourmonths. ofCILbasedondemandsupply finalizedby30.09.2011. DS(CPD)willbetheNodalOfficer. assessment. 19

3.Improvementincoalqualitythroughimprovedminingprocesses&coalpreparationmechanism a. Ensuring Supply of Thisisacontinuousprocess.Coalcompanies Funding will be met by washed/crushed and sized coal are responsible in ensuring supply of crushed the coal companies for the to consumers as per their coalofdesiredqualityaspertherequirements implementing of the consumers including the washed coal. measures required for requirement. CIL is setting up 20 new washeries for an sizing, crushing and quality ultimatecapacityof111mtpa.Theadditional improving including washing of capacitywouldbeachievedby31.03.2016. coal. The washeries will be set up under Built, Operate & Maintain (BOM) model in which the entire capital expenditure will be bornebyCIL. b. Supporting and encouraging Thisisacontinuousprocess.Theobjectiveis This activity will be use of appropriate mining toensure100%crushedandsizedcoalsupply funded by the coal practices like surface miners, to all consumers as per their requirement companies. selective mining, includingpowerby31.12.2014. picking/shoveling from hard platform, separating OB and coalfacesetc 4.Appropriatemeasuresforreductioninashcontenttoimprovequalityandreducetransportationcost. Formulation of a MoC will take steps to set up an expert No additional resources comprehensive coal Committee on the need for evolving a arerequired. beneficiation policy based on comprehensive policy for coal washing. optimal level of washing and Formation of Committee will be done by 30.06.2011andtheCommitteeisexpectedto statutorycompliances. submititsrecommendationsby31.12.2011. Examination of recommendations and finalizationofpolicyby31.12.2012.

Adviser (Projects) will be the nodal officer in this regard. Progress will be closely monitoredandreviewedquarterlyatMOC.

JS (LA) will be the nodal officer in this regard. Progress will be monitored and reviewedquarterlyatMOC.

Adviser (Projects) will be the nodal officer in this regard. Progress will be monitored andreviewedquarterlyatMOC.

20

5.Institutionalmechanismforconsumersatisfactionandqualityassurances a. Fast tracking the process of Draft Cabinet Note and Draft Bill to be settingupofCoalRegulator. discussed with the Ministry of Law by 28.02.2011. Final Draft Note and Bill to be put up for MOSsapprovalby25032011. Final Cabinet note with the Draft Bill to be senttotheCabinetSectt.by30.04.2011. b. Developing IT based MOC to write by 30.06.2011 to CIL, Coal grievanceredressalsystem. Controller to establish mechanism. CIL/Coal companiestoprepareandimplementITbased grievanceredressalsystemby31.03.2012. c.Toconsiderrationalizationof existing sources of coal supply with a view to reducing transportation cost for the existingconsumers.

No additional resource Theprogresswillbemonitoredeveryweek is required in this atDir.levelandeverymonthatJS(C)level. regard.

This activity will be ACommitteeunderJS(LA)willreview the funded by the coal progressonquarterlybasis. companies. Director(PRIWII)willbethenodalofficer.

Constitution of a task force to suggest the No additional resource QuarterlyreviewmeetingatthelevelofJS possibilities for rationalisation of existing is required in this (LA). resources. regard. DS(CPD)willbethenodalofficer. ReportofTaskForceby30.09.2011. Implementation of the recommendations, whereverfeasibleby31.12.2011. 6.Preventionofcoalpilferage Constitution of a Task Force MOC to write to concerned State No separate resources JS (C) to review the progress on quarterly involving concerned State Governments to constitute high level Task are required for the basis. Director (Vigilance) will be the nodal Governments. ForceheadedbyChiefSecretary/seniorofficer same. officer. of State Government comprising the District officials,officialsofconcernedcoalcompanies andarepresentativefromMinistryofCoalby 30.06.2011.Stepswouldbetakentoformthe sameby31.12.2011. 7.CreationofSevottamCompliantSystem To create a Sevottam To create system of redress and monitoring This activity will be Once the system is created, a Committee funded by the coal underJS(LA)willreviewitsfunctioningon Compliance System (a) To grievancesby30.6.2011. companies. quarterlybasis. implement,monitorandreview Director(PRIWII)willbethenodalofficer. Citizen Charter (b) Redress and monitorpublicgrievances. 21

Aspiration 3: To adopt stateoftheart technology and clean coal technology in coal mining with a view to improving productivity, safety, qualityandtheecology StrategicPlan Resource requirement forthechosenstrategy 1.Encouragingdevelopmentoflargemineswithhighercapacityequipment&adoptinginternationalbestpractices a. Adopting global best mining This is a continuous process. Already new mines This activity will be are being planned with state of the art funded by the coal practices&benchmarking. technologies in the subsidiary companies of CIL, companies. SCCLandNLC. Buildadetailedimplementationplan Trackingandmeasurement

b. Exploring feasibility for Fast Track Coalcompanieshavealreadybeenempoweredfor clearancesformegamines(morethan taking investment decisions. In regard to statutory clearances for the projects a set 5.0MTY). procedure is already in place and coal companies have to strengthen their project divisions in obtainingthenecessaryclearancestimely.Allthe coal companies to set up full fledged project division for sanctions and monitoring of projects by31.12.2011. This is also in practice however in a limited c. Promoting introduction and adoption of GPS based Fleet manner. This aspect can be replicated in the Management System in high capacity selected mines of subsidiaries of CIL. All OC projects having 5.0 Mty. coal production and opencastmines. above to be covered in this regard in PhaseI by 31.12.2013andtherestoftheOCminesinPhase IIby31.12.2016.

Adviser(Projects) will be the nodal officer in this regard. Quarterlyproject/performance review meetings under Secretary(Coal) would also cover the aspects of adopting global best mining practices and benchmarking in coal sector. This activity will be Adviser(Projects) will be the funded by the coal nodal officer in this regard. Progress willbe monitored and companies. reviewedquarterlyatMOC.

This activity will be funded by the coal companies.

Adviser(Projects) will be the nodal officer in this regard. Progress willbe monitored and reviewedquarterlyatMOC.

22

2.TimeboundrolloutofITenabledMISsystemforCIL ExpeditingERPimplementationincoal Thisisalsoinpracticeinalimitedmannerinsome of the coal companies. However, CIL needs to companies. takeuptheissueonprioritybasis.SAPERPwillbe implemented in CIL and all the subsidiary companiesbyJune,2014. 3.Promoting&supportingtraining/skillupgradationtobridgeskillgap a. Encouraging coal companies to set MOCwouldtakeupwithallthecoalcompaniesto up new training institutes and for make plan by 31.12.2011 for compulsory training ensuring compulsory training for own aspervocationaltrainingRules.Trainingprogram and outsourced employees for plan once finalised will be implemented by the upgradation of skills with regard to coalcompaniesfrom01.04.2012onwards. contemporary processes. technologies and MOCtowritetocoalcompaniesby30.06.2011to promote setting up new institutes. A blue print forthesametobepreparedbefore31.12.2011by the coal companies. Thereafter action will be takenbythecoalcompaniestosetupinstitutions before30.03.2016.

This activity will be funded by the coal companies.

Adviser(Projects) will be the nodal officer in this regard. Progress willbe monitored and reviewedquarterlyatMOC.

This activity will be funded by the coal companies.

A Committee under JS (LA) will review the progress on quarterlybasis. Director (PRIWII) will be the nodalofficer.

b. Promoting the setting up of specialised technical/ vocational training institutes by coal companies including enhancing the intake capacity to meet requirement of skilledmanpower.

This activity will be A Committee under JS (LA) will funded by the coal review the progress on quarterlybasis. companies. Director (PRIWII) will be the nodalofficer. This activity will be A Committee under Adviser(P) funded by the coal will review the progress on quarterlybasis. companies. Director(Tech)willbethenodal officer.

c. Encouraging use of simulators for MOC to write to coal companies to identify the places where the simulators can be installed and trainingincoalcompanies. prepare a plan for training of employees using simulatorsby31.12.2011.Thesimulatorswillbe purchased and installed by 31.12.2012 and trainingwillcommencefrom01.04.2013onwards. 4.Advancetechnologyandpracticesforminimisingaccidentsincoalmines Formulation of expert group to study It is proposed to set up an expert Group by & identify for introduction of 30.06.2011 and recommendations will be made advancedintegratedsafetymonitoring available by 31.12.2011. Examination of the system using remote control & recommendations and implementation to be completedby31.12.2015. appropriatetechnology.

This activity will be funded by the coal companies.

Adviser(Projects) will be the nodal officer in this regard. Progress willbe monitored and reviewedquarterlyatMOC.

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5.ControloffireandsubsidenceinJhariaandRaniganj Implementationofmasterplandealing Government has already approved a Master Plan with fire, subsidence, rehabilitation covering Jharia and Raniganj coalfields for anddiversionofsurfaceinfrastructure addressing the issues of fire, subsidence and rehabilitationofaffectedpersonsinAugust,2009 inJhariaandRaniganjcoalfields. for implementation in 1012 years period of time withanoutlayofaboutRs.9777crore.

The estimated outlay is Rs.9777 crore and the outlay will be financed partially from the internalresourcesofCIL andfromtheaccrualsof stowing excise duty underCCDA.

A highpowered Committee underSecretary(Coal)withthe representatives of the concerned State Governments and coal companies is in existence for monitoring the implementation of the Master Plan. Meetings of the Committee are being held periodically. Adviser(Projects) will be the nodal officer in this regard. Progress willbe monitored and reviewedquarterlyatMOC.

6.PromotingcaptureandcommercialexploitationofCoalMineMethane/VentAirMethane Formation of an Expert Group for It is proposed to set up the expert Group by This activity will be promoting capture and commercial 30.06.2011 and recommendations will be made funded by the coal exploitation of Coal Mine available by 31.12.2011. Examination of the companies. recommendations and finalization of Policy by Methane/VentAirMethane 31.12.2013. 7.DevelopmentofUndergroundCoalGasification Proactive measures to encourage, Action has already been initiated in this regard. No additional resources facilitate and create enabling MOC has issued guidelines for conducting UCG are required in this environment for commercial operationsinthecountryand5ligniteand2coal regard. blockshavebeendelineatedforoffertopotential exploitationofUCGinIndia. entrepreneurs.Theprocessofofferingtheblocks istobeinitiatedby31.12.2011. 8.Promotingcleancoaltechnologyincoalmining A road map for gradual switchover to ATaskForcewillbeconstitutedby30.09.2011and No additional resources cleancoaltechnologywillbeprepared the recommendations will be made available by are required in this 30.06.2012. Examination and implementation by regard. byconstitutingataskforce. 31.12.2013. 9.Preservationofecology Settingupofaninterministerialtask force for detailed study of impact of miningoperationonecologyandstudy ofeffectivenessofmineclosureplan. ATaskForcewillbeconstitutedby30.06.2011and No additional resources the recommendations will be made available by are required in this 30.06.2012. Examination of recommendations regard. andimplementationby31.12.2012.

JS(Coal)willbethenodalofficer in this regard. Progress will be monitored and reviewed quarterlyatMOC.

Adviser(Projects) will be the nodal officer in this regard. Progress willbe monitored and reviewedquarterlyatMOC. Adviser(Projects) will be the nodal officer in this regard. Progress willbe monitored and reviewedquarterlyatMOC. 24

10.R&D Adequate resources are availablebothunderthe Plan head of R&D of MOC and with the coal companiesfortaking up proposals relevant to thecoalsector. 11.ToimbibeandimplementnewtechnologiesinthefieldofLigniteProduction/PowerGeneration a.Introductionofsupercriticalboilers Itisproposedtoformanexpertgrouptogo into This activity will be / other new technologies in the New details and draw an action plan in this regard by fundedbyNLC. power plants for improving 30.09.2011 and recommendations will be made available by 31.03.2012. Examination of operationalefficiency. recommendations and implementation by 31.03.2013. b. Exploring the possibilities of Itisproposedtoformanexpertgrouptogo into This activity will be alternateminingtechnologytoexploit details and draw an action plan in this regard by fundedbyNLC. deep seated lignite resources such as 30.09.2011 and recommendations will be made CoalBedMethane,UnderGroundCoal available by 31.03.2012. Examination of Gasificationetc. recommendations and implementation by 31.03.2013. This is a continuous process and the Standing Promote applied research in coal Scientific Research Committee (SSRC) under the sector for improving production, Chairmanship of Secretary(Coal) already in productivity,qualityandsafety. existencetoapprovetheresearchproposalsinthe coalsector. CMPDIListhenodalagencyand Adviser(Projects) is the nodal officer.Halfyearlymeetingsof SSRC are being held to review the progress under the chairmanship of Secretary(Coal). Adviser (P) will be the nodal officer in this regard. Progress willbemonitoredandreviewed quarterlyatMOC.

Adviser (P) will be the nodal officer in this regard. Progress willbemonitoredandreviewed quarterlyatMOC.

25

Aspiration4:Toexpeditebringingalltheavailableresourcesinthecountryintotheprovedcategorythroughdetaileddrilling StrategicPlan Resource requirement forthechosenstrategy 1. Fasttracking&modernisingcoalresourceassessmentforsustaininghighergrowthincoalproduction a.Toprepareadetailedactionplanfor Itisproposedtoformanexpertgrouptogo into This activity will be increasing exploration capacity of details and draw an action plan in this regard by fundedbyCMPDIL/CIL. CMPDIL & other agencies and to take 30.06.2011 and recommendations will be made upafeasibilitystudyforusingmodern available by 31.12.2011. Examination of tools of exploration like surface geo recommendations and implementation by physical method and applying 31.12.2013. principles of the new science of geo statistics and to study the proving of deep seated coal resources in the country. b. To pursue request for amendment Action has already been initiated and This activity will be inguidelinesissuedbyMOEFof1520 experimental drilling in 3 fields has already fundedbyCMPDIL/CIL. boreholes per 10 sq. k.m. to 1520 commenced.BasedontheoutcomeofthisMOEF willberequestedtorelaxtheexistingstipulations boreholespersq.km. by31.12.2011 c. To explore the feasibility for MOC has taken up the matter with Ministry of No additional resources arerequired. exemption of CMPDIL & SCCL from Mines(MOM)fortheneedfulby31.12.2011. requirement of notification of explorationblock,likeMECL,GSI,AMD etc.undersec4ofMMDRact d. To explore the possibility of setting Already2PlanschemesofMOCareinoperationin Adequate resources are through up a Speedy & smooth funding this regard viz. Regional/Promotional exploration available mechanism for taking up detailed and Detailed Drilling in NonCIL blocks being budgetsupport. exploration in nonCIL coal blocks as fundedthroughbudgetarysupport. wellasforpromotionalexplorationto betakenupbyGSI,MECL&CMPDIL. Buildadetailedimplementationplan Trackingandmeasurement

Adviser (Projects) will be the nodal officer in this regard. Progress willbe monitored and reviewedquarterlyatMOC.

Adviser (Projects) will be the nodal officer in this regard. Progress willbe monitored and reviewedquarterlyatMOC. JS(C)willbethenodalofficerin this regard. Progress will be monitored and reviewed quarterlyatMOC. Adviser(Projects) will be the nodal officer in this regard. Quarterlyproject/performance review meetings under Secretary(Coal) would also covertheaspectsofprogressof exploration schemes in coal sector. 26

e. Constitution of a dedicated Cell in CMPDIL to facilitate the captive coal block allocattees for detailed exploration..

MOC to write by 30.04.2011 to CMPDIL to constitutea Cellforthispurpose.TheCellwillbe constituted by CMPDIL by 31.07.2011 which will beintimatedtothecoalblockallocattees.

No additional resources required.Thisisonlyto reorganise the staff of CMPDIL/CILandacellto beconstituted.

A Committee under Chairmanship of JS (Coal) will monitor the progress by obtaining feedback from CMPDIL and the allocattees. Meetings will be held once in sixmonths.

27

Aspiration 5: To mechanise, modernise and develop necessary infrastructure of rail network, ports and roads for efficient and speedy evacuationofallthecoalproduced. StrategicPlan Buildadetailedimplementationplan Resourcerequirementfor Trackingandmeasurement thechosenstrategy Additional resources will not be a constraint for coal companies to create newevacuationfacilities. Adviser (Projects) will be the nodal officer in this regard. Progress willbe monitored and reviewedquarterlyatMOC.

Additional resources will not be a constraint for coal consumers to create new evacuation facilities. FundsforMGRsystemsto beinvestedbytheproject developers. c. To coordinate efforts with Thisisacontinuousprocess.Atpresent,theinter There is no requirement resources for railways for increasing supply of Ministerial Sub group headed by JS, Ministry of of rakes at sidings in need and to Coalreviewsthepositionofavailabilityofrakesat implementation of this plan. pursue with railways for sidings,whichwillbecontinued. introduction of high capacity rakes The RailCoal interface meeting would be forcoaltransportation. continued to have interaction between CIL and The funds required by Railways to plan and monitor supply of rakes for Railways for procurement ofhighcapacityrakeswill evacuationofcoal. Inrespectofhighcapacityrakes,thematterwould beinvestedbythem. be taken up with Railways and the time line for implementation of this plan will be decided in consultation with the Ministry of Railways by 31.12.2011.

1.PromotingIntegrateddevelopmentofcoalminesandevacuationinfrastructure a. To promote and encourage It is proposed to form an expert group by developmentoffeederrailwayline/ 30.09.2011 to go into details and draw an action MGR/ConveyerBeltforlinking coal plan in this regard and submit recommendations projects with the proposed by 30.06.2012. Examination of the DedicatedFreightCorridor(DFC). recommendations and implementation by 30.06.2015. b. Emphasising the need for It is proposed to form an expert group by strengthening existing MGR 30.09.2011 to go into details and draw an action systemsforpitheadpowerstations. plan in this regard and submit recommendations by 31.03.2012. Examination of the recommendations and implementation by 31.03.2014.

Adviser (Projects) will be the nodal officer in this regard. Progress willbe monitored and reviewedquarterlyatMOC.

The Sub group meetings at the level of JS (LA) which are held normally every week and regularmeetingsatthelevelof Secretary (Coordination), CabinetSecretariat,whichinter alia, review the supply of railway wagons at sidings, will continue. During the Railcoal interface meeting held at least once in a year, implementation of this action plan will also be discussed. JS (LA) will hold meetings once 28

(a) Ministry of Coal will hold consultation with MinistryofPower,MinistryofSteel,Departmentof Industrial Promotion & Planning, CIL and Coal ControllerOfficeandotherstakeholderstoassess theprojecteddemandofimportedcoalinthenext 10years. (b)TheMinistryofCoaltotakeupthematterby 30.09.2011 with the Ministry of Shipping for development of additional port facility to cater to theincreasingdemandforimportedcoalinviewof gapindemandandsupplyofdomesticcoal. (c) The Ministry of Coal to take up the matter with the Ministry of Railways and Ministry of Surface Transport by 30.09.2011 to create necessary infrastructure for inland transportation ofcoalfromtheportstotheconsumers. 2.SpeedyexecutionofRailwayProjectsalreadyinpipelineforevacuationofCoal To hold regular meetings of Inter An Inter Ministerial Highpowered Committee Ministerial Coordination Committee undertheChairmanshipofSecretary(Coal)already set up for monitoring speedy inexistence. executionofRailwayprojects.

d. Promoting & strengthening of evacuation system in coal companies for seamless transfer of coal from pit head to siding & its loadingandtoencourage&support improvement of roads, culverts, bridgesinexistingminingareas. e. To pursue with concerned ministry for development of port capacity/facility to handle import of coalplannedbycoalcompanies.

It is proposed to form an expert group to go into details and draw an action plan in this regard by 31.12.2011 and recommendations will be made available by 30.06.2012. Examination of the recommendations and implementation by 31.03.2014.

Additional resources will not be a constraint for coal companies to create new evacuation facilities. Funds will be invested by theprojectdevelopers. Concerned Ministries will be requested to assess the resource requirement for projecting the budgetarydemand.

in four months with CIL and Railways to monitor the progress. DS (CPD) will be the Nodal Officer Adviser(Projects) will be the nodal officer in this regard. Progress willbe monitored and reviewedquarterlyatMOC.

Periodical feedback/status would be obtained from the concernedMinistries. Follow up with the concerned Ministries by holding quarterly meeting. Economic Advisor, Ministry of Coalwillbenodalofficerinthis regard.

Nofinancialresourcesare Adviser(Projects) will be the requiredforthispurpose. nodal officer. Meetings of the Highpowered Committee will be convened once in four months. 29

 Aspiration6:Acquireanddevelopcoalassetsabroadfortheenergysecurityneedsofthecountry 1.Tofacilitateandcoordinateacquisitionofcoalassetsabroadbygovt.coalcompanies a. Preparation of a detailed roadmap It is proposed to form an expert Additional resources will not be a foracquisitionofcoalassets/resources group with representatives of CIL, constraint for coal companies to Ministry of External Affairs and acquirecoalassetsabroad. abroad. DepartmentofEconomicAffairstogo into details and draw an action plan in this regard by 31.10.2011 and recommendations will be made availableby31.03.2012.Examination of the recommendations and implementationby31.03.2013. It is proposed to form an expert Additional resources will not be a b.Leveragingbilateralandmultilateral group with representative of CIL, constraint for coal companies to relationsforcoalassetsacquisition. Ministry of External Affairs and acquirecoalassetsabroad. DepartmentofEconomicAffairstogo into details and draw an action plan in this regard by 31.12.2011 and recommendations will be made availableby30.06.2012.Examination of the recommendations and implementationby31.03.2013. JS (Coal) will be the nodal officer in this regard. Progress willbemonitoredandreviewed quarterlyatMOC.

JS(C)willbethenodalofficerin this regard. Progress will be monitored and reviewed quarterlyatMOC.

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Section5 LinkagebetweenStrategicPlanandRFD The strategic plan is for a period of five years starting from the financial year 201112. RFD wouldbeayearlyexerciseemanatingfromthefiveyearstrategicplan.Forexample,RFDfor201112 willbasicallyemergefromthefirstyearofthetimeframegiveninSection4above,andwould,thus,has an intrinsic linkage with the overall strategy. The two would essentially complement each other although the yearly RFD exercise would involve greater detailing and micro issues would also get addressedinamanner,whichcanprovidetheframeworkforperformancemonitoring.

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 Section6 InterDepartmentalandCrossfunctionalIssues A. 1. (i) (ii) (iii) 2. (i) (ii) 3. (i) (ii) 4.

InterDepartmentalissues MinistryofEnvironmentandForests Increase in the number of exploratory boreholes in forest land to undertake proper resource assessmentforpreparationoffeasibilityreports. Expediting Forestry and Environmental clearances for coal project by the Ministry of EnvironmentalandForestsandcoalproducingstates. Drawing up of standard Terms of Reference (ToR) for opencast and underground mines to reducetimeforEnvironmentManagementPlan(EMP)preparation. MinistryofPower Theimportbypowersectorconsumertobeasplannedintermsofquantityandschedulefixed byCentralElectricityAuthority. Unloading constraints at thermal power stations end to be removed by the Ministry of Power/concernedUtilities. MinistryofRailways Toexpeditetheconstructionofnewrailwaytracksinthecoalfields. Toensureavailabilityoftherequisitenumberandtypeofwagonsfordispatchofcoaltovarious consumers. StateGovernments Landacquisitionisoneofthemajorproblemsforexpansionofthecoalprojectsorstartingofnew coal projects and development of coal blocks. The problems arises for land acquisition are basically R&R issues which have the following associated difficulties such as delay in authenticationofclaimsofthetenants,nonavailabilityofvalidtitledocument,disputesamongst the land losers and related court cases, resistance in shifting to rehabilitation site even after receiving full amount of compensation of land and houses, demand for higher amount of land compensationthanthatprescribedintherelevantActoflandacquisition,etc.StateGovernments shouldplaymoreactiveroleinthisregard.

(i)

(ii) LawandordersituationinmanyStatesspeciallyJharkhand,Chhattisgarh,OrissaandWestBengal haveadverselyaffectedcoalminingoperationsandalsoincreaseinillegalminingoperationsand havestoppedcreationofmuchneededinfrastructuralfacilitieslikeroads,railways,etc.inareas

32

like Karanpura Coalfields. More active involvement of State Government authorities can only preventanderadicatetheseproblemstofacilitatecontinuanceofminingoperationssmoothly. (iii) Considerable delay is taking place to accord approval for prospecting lease, mining lease, land acquisition, etc. These procedures are under the control of the States. Greater awareness and appreciation from the State Government machineries are required from hastening the approval processesfordevelopmentofnewminesandexpansionoftheexistingmines. 5.

MinistryofLabour Issues related to Mine safety and contract labour are to be coordinated with the Ministry of Labour.

6.

MinistryofSteel MinistryofSteelhasrequestedtogivemorestressonexploitationofcokingcoalreserves,sothat theimportofcokingcoalisreduced.Morefacilitiesforwashingofcokingcoalmaybesetup,so thatthelowergradecokingcoalextractedfromthebottomseamscanbeusedbythesteelplants. MinistryofShipping CoordinationbetweenMinistryofShippingandMinistryofrailwaystoreducethedetentionof railwayweagonsinsidetheport. Exchangeyardsbetweenportsandrailwaystobedispensedwith. InterDepartmentalConsultations InsofarastheCentralGovernmentMinistries/Departmentsareconcerned,therearemainly threesetsofthemwithwhomMinistryofCoalhastocoordinatecloselyinordertooptimally realizetheobjectivesofthisstrategyplan.Thesecouldbeclassifiedasfollows: (i) Coal consumers Ministries of Power, Steel and Department of Industrial Policy and Promotion,StateGovernments. (ii)Regulatory MinistriesofEnvironmentandForests,andLabour. (iii) Logistical support Ministries of Railways, Surface Transport and Shipping, State Governments. For addressing the issues related to the coal consuming Ministries/ Departments, there is already an institutionalized mechanism in terms of a Cabinet Committee headed by the Secretary(Coordination)intheCabinetSecretariat. Coordination with the Ministries providing logististics support is of critical importance, as the production is going to be scaled up considerably in the coming years, with a large number of coal blocks given to new players coming into production. In order that the transportation infrastructure does not become a bottleneck, investment of high order would be called for in 33

7.

(i)

(ii)

B. 1.

2.

3.

this area. A well designed and coordinated approach would be necessary for securing optimal results.ThereisalreadyanInterMinisterialHighPoweredCommitteeundertheChairmanship ofSecretary(Coal)formonitoringspeedyexecutionofRailwayProjects. 4. There is already a Committee headed by the Minister for Coal that deals with safety matters relating to the Ministry of Labour. It would be ensured that the Committee meets twice in a year. ThemattersrelatingtotheMinistryofEnvironmentandForestshaveattainedgreatsensitivity lately.DelaysinthegrantofstatutoryclearancesbytheMinistrycouldhaveasevereimpacton the production plans for coaL This, in turn, could have serious implications for the energy security of the country. Therefore, intervention at the level of Cabinet Secretariat would be sought. IntraDepartmental MinistryofCoalisarelativelysmallMinistry,withasubordinateofficeoftheCoalController. ThereareonlyfourDivisionsintheMinistry.Therefore,coordinationwithintheMinistryisnota majorissue.Thereisalreadyaninstitutionalizedmechanismofperiodicmeetingatthelevelof Secretary. D. AppropriateStructuresandSystems Sincecoalisanationalizedsector,theregulatoryfunctionsneedtobekeptatanarm'slength from the Ministry. Therefore, it is proposed to set up an Independent Regulator for the coal sector. A draft Cabinet Note alongwith the Draft Bill on setting up of a Coal Regulatory AuthoritywascirculatedtovariousMinistries/Departmentfortheircomments.Thecomments and suggestions received from the concerned Ministries/Departments are being examined for their suitability for incorporation into draft Bill. Thereafter the matter shall be put up to the competentauthorityforapproval.

5.

C.

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 Section7 MonitoringandReviewingarrangements 1. CommitteesunderChairmanshipofAS/JSrankofficersintheMinistryofCoalareproposedto beconstitutedtomonitorandreviewtheimplementationofeachofthestrategiesasalsofor coordinating with the internal and external agencies for the implementation. The concerned sectionoftheMinistrywouldassisttheNodalOfficerinthisregard. The Chairman of the Committee/Nodal Officer will monitor and review the progress of implementationbyholdingquarterlymeeting. At Coal Companies level, the progress of implementation would be reviewed by CMD of coal companiesonamonthlybasisandbyChairman,CILonquarterlybasis. The progress of the implementation of the Strategic Plan will be reviewed by the Secretary (Coal)/AdditionalSecretary(Coal)byholdinghalfyearlymeetingswithconcernedofficers.

2.

3.

4.

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 Section8 PotentialChallengeslikelytobeAddressedinthe12thPlan 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. EnhancingcapacityforgrowthAspirationNo.1 EnhancingskillsandfastergenerationofemploymentAspirationNo.3 ManagingtheenvironmentAspirationNo.3 MarketforefficiencyandinclusionAspirationNo.2 Thecentralization,empowermentandinformationAspirationNo.3 TechnologyandrenovationAspirationNo.3 SecuringtheenergyfutureforIndiaAspirationNo.6 AccelerateddevelopmentoftransportinfrastructureAspirationNo.5 ImprovedaccesstoqualityeducationAspirationNo.3 Better preventive and health care Coal PSUs have established health care system which caterstobothpreventiveandcurativehealthcareneedsoftheemployees.

36