24TH NOVEMBER, 2011

REPORT OF THE WORKING GROUP ON COAL & LIGNITE FOR FORMULATION OF TWELFTH FIVE YEAR PLAN (2012-2017)

Government Of India Ministry Of Coal

Shastri Bhawan

New Delhi
(November 2011)

Contents
Chapters Particulars Preface Executive Summary 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Review of XI Plan performance Coal Demand Coal Production Demand vis--vis Availability Coal movement & Infrastructure development Lignite Coal Quality & Beneficiation of Coal Exploration of Coal & Lignite Mining Technology Productivity & Benchmarking Project formulation and Implementation Environment Management, Land Acquisition and R&R Clean coal technology Automation & Application of Information technology Research & Development Safety & Welfare Human resources requirements Acquisition of Coal Assets Abroad Investment envisaged Policy initiatives on Coal Sector Reform Marketing strategy & Mechanism for Greivance Redressal Recommendation Annexure Page No. i 1 16 22 39 60 64 75 81 93 107 116 122 131 145 150 157 163 178 184 196 199 209 220

LIST OF ANNEXURES
Reference Chapter Preface Annexure No. A B 1.1 1 1.2 1.3 2 3 2.1 2.2 3.1 5.1 5 5.2 5.3 5.4 6.1 6.2 6 6.3 6.4 7.1 7.2 7.3 7.4 8.1 8 8.2 8.3 12 12.1 12.2 Subject Constitution of Working Group on Coal & Lignite for formulation of the XII Five Year Plan Constitution of Sub-Groups of Working Group by MOC Year-wise Coal Demand and Supply : Sector-wise in X Plan Year-wise & Sector-wise demand and supply in XI Plan All India Coal Production Performance in XI Plan Perspective Demand Analysis of XII Plan by Expert Committees List of coal based power plants to yield benefit in XII Plan Coal Production Programme : Field-wise Movement matrix of indigenous coal for XII Plan (2016-17) Movement matrix for imported coal for 2016-17 List of on-going railway projects for augmenting coal routes Railway projects for port connectivity State-wise projected lignite based power generation capacity Sector wise, State-wise projected lignite demand State-wise projected lignite production during XII Plan and at terminal year of XIII Plan for Lignite Performance of coking coal washeries in operation in the XI plan period Performance of non-coking coal washeries in operation in the XI plan period Projected washed coking coal production in XII plan from existing & proposed washeries Envisaged washed non-coking coal production during XII plan from existing & proposed washeries Programme and Progress of Exploration Work during XI Plan Updated details of Coal Resources as on 1.4.2011 State-wise Lignite Resources as on 01.04.2011 Master Plan for dealing with fire, subsidence, rehabilitation coalfields and diversion of surface infrastructure in Jharia and Raniganj State-wise, sector-wise & agency-wise investment proposal Page No. 237 240 245 246 247 248 250 261 262 264 265 269 274 275 276 280 281 282 284 287 289 291 293 294 295

Year-wise phasing of capital expenditure

Reference Chapter

Annexure No. 12.3 12.4

Subject Pre-implementation activity chart for rehabilitation projects of JCF (BCCL) Phase-wise Rehabilitation Schedule for JCF (BCCL) Statement for overall Welfare Expenditure Country-wise reserve and reserve-production ratio Global coal trade flow chart Trend of import of coal by Asian countries Trend of export of coal by major exporting countries Company-wise fund allocation & actual expenditure in X and XI Plans Fund allocation & actual expenditure in X and XI Plans with subsidiary-wise break-up for CIL Capital Outlay for XII Plan for CIL

Page No. 296 297 298 299 300 301 302 303 304 305

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16.1 18.1 18.2 18.3 18.4

19

19.1 19.2 19.3

PREFACE
In the context of the formulation of XII Five Year Plan (2012-17), the Planning Commission, has constituted a Working Group on Coal & Lignite under the chairmanship of Secretary, Ministry of Coal, vide Office Order No. M 12026/05/2011 Coal dt.3rd March 2011 (Given at Annexure-A).

The terms of reference of the Working Group, as articulated in the Office Order of Planning Commission are as under: (i) ii) To review the status of reforms carried out in coal sector and make recommendations for continuation of reforms further. and 2017-2022 (13th Plan), based on the requirement of the end users (of both coking and To make a year-wise coal and lignite demand estimate for the period 2012-17 (XII Plan)

non-coking coal); their pattern of growth; technological improvements of the end users

coal; possible inter fuel substitutions; etc. iii) iv) the domestic demand from these assets;

vis-a vis the specific consumption; import requirements of both coking and non-coking Suggest measures to enhance acquisition of assets abroad and extent of complementing

Review the exploration programme (regional/promotional & detailed exploration) under implementation and suggest measures to enhance the pace of exploration matching with the current and long term coal and lignite demand; to assess the capabilities of the private sector participation to augment/supplement these capabilities.

existing exploration agencies to meet this exploration programme and the possibility of v) vi) To assess the potentiality of methane content of each coalfield and suggest measures for successful exploitation of this resource. To bring out a year wise, coal field wise and company wise coal and lignite production programme with related financial and economic implementations; to correlate this production programme in the projected demand and to suggest measures for dealing with

suitable adoption in view of the large resources of untapped deep seated coal resources and resources in geologically disturbed areas, in particular. vii) To recommend industry structure that would enhance number of players, promote competition, provide consistent and transparent pricing regime and raise production, distribution, transportation and end use efficiency.

the demand-supply mismatch, if any; study and suggest technological developments for

viii) To establish benchmarks for different mining operations (opencast as well as underground) comparable with international standards and suggest measures to realize such levels in India. ix) x)

To suggest measures for improved formulation and implementation of projects. To suggest measures for improving the availability of proper quality of coking coal from indigenous sources; improving the performance of coking coal washeries; measures to enhance supply of non coking coal of 34% ash for power generation in compliance with the MOEFs directive.

xi) xii)

To suggest measures for improving the existing infrastructure for coal movement from collieries to consuming centres and also from ports; To suggest measure to enhance the use of emerging IT technologies in the exploration, production, distribution and transportation of coal and lignite.

xiii) To assess safety and welfare requirements for workers; to assess the current status of research and development activities in the coal and lignite sector and to formulate and recommend schemes and programmes for research and development in specified areas in view of the emerging energy scenario and environmental implications.

xiv) To make assessment of year wise investment including foreign exchange component for achieving the XII Plan objectives and targets, including foreign assistance/loans/bilateral collaboration etc. xv)

To review and assess the environmental management aspects for sustainable coal production in the XII Plan and beyond.

In order to formulate the document in a time-bound manner, the Planning Commission suggested the following: 1.

aspects will be formed by the Working Group. These Sub-Groups will furnish their reports to the Working Group. deemed necessary. September, 2011. The Chairman of the Working Group may co-opt experts as members as and when The Working Group will submit its reports to the Planning Commission latest by 30th

In order to assist the Working Group in its task, separate Sub-Groups on specific

2. 3. 4.

Non-official members of the Working Group shall be entitled to payment of TA/DA by respective organizations as per the rules the establishments applicable to them.

Planning Commission. The TA/DA of Government officials will be borne by their Name(s) of the representative(s) of Organization(s) as mentioned in the composition of the Working Group may be communicated to the Member-Secretary of the Working Commission. will be Group under intimation to Dr. Arbind Prasad, Sr. Adviser (Energy), Planning

5.

6.

Shri I.A.Khan, Joint Adviser (Energy), Room No. 501, Yojana Bhawan, (Tel: 23327446) query/correspondence in this regard may be made with him. the Nodal Officer for this Working Group and any

further

To assist the Working Group, Ministry of Coal has constituted four sub-groups to cover up all the areas indicated in the terms of reference vide Office Order No.17014/04/2011 PMS dated 18/5/2011. The composition & Terms of Reference of various Sub-Groups are given in Annexure-B.

The related major issues being covered by the four sub-groups are as under: 1 Sub-Group-I For review of the status of reforms carried out in coal sector and to

ii

make recommendations for continuation of reforms further. 2 Sub-Group-II On Coal Demand, Supply, Movement, Quality, Import and

Infrastructure Development. 3 4 Sub-Group-III Sub-Group-IV On Coal & Lignite Exploration and use of clean coal technologies On productivity, information technology, mining technology, R&D, Safety, Welfare and Environmental Management Sri A.K Bhalla, Joint Secretary, Ministry of Coal is the Chairman whereas Sri Gautam Dhar, CGM, Corporate Planning, Coal India Limited is the Member Secretary of Sub Group-I. CGM, Sales & Marketing, Coal India Limited is the Member Secretary of Sub Group-II. (Technical), CMPDIL is the Member Secretary of Sub Group-III. (Tech), M/o Coal is the Member Secretary of Sub Group-IV. lignite sectors are included in each sub-group. Sri R.K Mahajan, Joint Secretary, Ministry of Coal is the Chairman whereas Sri H K Vaida, Sri A. K. Singh, Chairman, CMPDIL is the Chairman whereas Sri A K Debnath, Director Adviser (Projects), Ministry of Coal is the Chairman whereas Sri D N Prasad, Director Besides these, about 12 to 17 members drawn out from the different stakeholders of the coal & During the process of formulation, each sub-group had co-opted other than the members of

Sub Group, some experts in the respective specified fields to imbibe valued feedback arising out of their experience & expertise to the issues. Following Officials & non-Officials experts have been co-opted for sub-group I: 1. Shri A. Acharya, Coal Controller 2. Shri S.K. Banerjee, Retd. Dy. Chief Manager, L&R, CIL 3. Prof. A.K. Ghose, Former Director ISM 4. Dr. Rajiv Kumar Garg, Adviser (E&F), CIL 5. Shri U Kumar, Advisor (Coal), Aditya Birla Group, Representative of CII 6. Shri Chankya Choudhary, CRE, Tata Steel 7. Shri Puneet Goel, Director, KPMG Advisory Services Pvt. Ltd. Following Officials & non-Officials experts have been co-opted for sub-group II: a. Sri Gautam Dhar, b. Sri Phalguni Guha, c. Shri A. Acharya, CGM (Corporate Planning), CIL CGM (Coal Videsh), CIL Coal Controller

Consequent to receipt of draft reports of all the sub-group, an editorial committee was constituted to collate the information and formulate the final report vide letter F.No.

iii

Appendix III. The editorial committee comprises the following: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) Sri A K Bhalla, JS (C), MoC Sri Kailash Pati, Economic Adviser, MoC Sri D N Prasad, Director (T), MoC Sri Gautam Dhar, CGM (CP), CIL Sri H K Vaidya, CGM (S & M)/ CGM (QC), CIL Sri N. Ahmed, GM (Exploration), CMPDIL Sri Y P Dhingra, DS (CPD), MoC Sri Sundeep Gupta, US (CPAM), MoC Sri G Srinivasan, US (CPD), MoC

17014/04/2011-PMS dated 30th Sept 2011 of Ministry of Coal, which has been appended as Chairman Co-Chairman Member Member - Member - Member Member Member - Member

The committee has benefitted from the illuminating guidance of Shri Alok Perti, Secretary to the Government of India, Ministry of Coal in the course of preparation of this report.

iv

Executive Summary
Review of XI Plan: terminal year (2011-12), which was revised downward to 713.24Mt during Mid-Term 12. The Eleventh Five Year Plan had envisaged a coal demand of 731.10Mt in the

Appraisal of the Plan (MTA) and further moderated to 696.03 Mt in the Annual Plan 2011The initial planned coal production of 680 Mt in 2011-12, the terminal year of the

XI Plan, has been revised to 629.91Mt in MTA and was further modified to 554 Mt in the Annual Plan 2011-12. The demand supply gap earlier envisaged at 51.10 Mt in WG on Coal & Lignite for

XI Plan has been revised to 83.33 Mt in MTA, which in the Annual Plan document of 2011-12 has further widened to 137.03 Mt. As against coal based thermal capacity addition programme of 42,625 MW during

XI Plan period, CEA envisages commissioning of 41,151MW. The actual capacity addition

till the end of August, 2011 as reported by CEA, has been 29740 MW. CEA indicated

another 11401 MW capacity, i.e.28% of the total capacity addition of XI Plan period will be BU by the end of XI Plan is now anticipated by CEA to be around 600 BU (13% less than the projection). Coal Demand:

commissioned during last seven months of the Plan. The generation programme of 690

79010 MW (14,560 MW in Central Sector, 12,080 MW in State Sector and 52370 MW in Private Sector). This apart, CEA has also indicated 38905 MW coal based capacity is under various stages of execution. CEA has indicated a coal based generation programme of in 2016-17. This excludes generation from captive power plants. After considering the capacity addition programme of CEA and going by the trend that around 70% of the likely coal based generation in the TY of XII Plan could be in the order of 975 BU. This indicates a CAGR of 10% in coal based generation programme which is in tune with the projected energy requirement to be coal based, the Sub-Group assessed that the most 1155 BU in 2016-17. 17th Electric Power Survey projected energy requirement of 1392 BU

For the XII Pan period, CEA has indicated a coal based capacity addition plan of

suggested growth rate in economy to the tune of 9% during XII Plan. Further, taking in view that there will be substantial increase in use of washed coal and imported coal at coal requirement for power sector, thus works out to 682Mt in 2016-17. power plants, the specific coal consumption has been considered to be 0.70 Kg/Kwh. The The estimated demand of steel is related to steel production programme. The

optimistic projection of steel production in 2016-17 is 105 Mt. Based on the recommendation of the National Steel Policy that 0.64ton coking coal is required to produce 1 ton of steel, the corresponding coking coal requirement is worked out at 67.2 Mt in 2016-17. This excludes the demand of non-coking coal for captive power plants.

 plants.

assessed coal requirement is 47.31 Mt. This excludes the demand for captive power The assessment of demand for captive power plants is 56.36 Mt, which includes

The envisaged cement production programme in 2016-17 is 394.2 Mt and the

the plants of the Fertilizer sectors. In absence of plant-wise consumption details, the demand is estimated on the basis of the past consumption trends. of the optimistic production projection given by steel industry and coal consumption norm of the National Steel Policy. The coal demand for the sponge iron sector is assessed at 50.33 Mt on the basis

demand have been worked out for the TY of XII Plan. Under Scenario-I (Consumers against the demand of 2011-12 projected in Annual Plan. Scenario-II is the realistic

After consultation with the major consuming sectors, two scenarios for coal

perspective demand) the demand works out to 1203.88 Mt implying a CAGR of 11.5% requirement of coal arrived at taking in to consideration the envisaged demand of enduse products and likely production of major coal consuming sectors and the trend of been projected at 980.50 Mt implying a CAGR of 7.1%. In absolute term the incremental specific coal consumption by each of the sectors. The coal requirement in Scenario-II has demand is projected at 284.5 Mt from a level of 696 Mt in 2011-12 to 980.5 Mt in 201617. Out of the projected demand of 980.5 Mt, the demand of power utilities is 682

Mt, which is almost 70%. If the demand of captive power to the extent of 56.36 Mt is

included the projected demand for power sector works out to more than 75%. The share iron sectors works out to 4.7% and 5.1% of the total demand respectively. Coal Production: Business as Usual scenario: in 2016-17 against the likely production of 551.9 Mt in the TY of XI Plan in 2011-12 to be 163.1 against 121.07 Mt likely to be achieved in the XI Plan. 6.0 Mt and captive blocks & others 45.6 Mt. The coal production is envisaged to reach 715 Mt in the terminal year of XII Plan

of steel sector at 67.2 Mt forms 7% of the total demand. The share of cement and sponge

implying a CAGR of 5.08 %. The incremental coal production in the XII Plan is envisaged The incremental production envisaged in the XII Plan from CIL is 109.4 Mt, SCCL The potential increase in production of CIL is envisaged from MCL (34 Mt), CCL

(32 Mt), SECL (18 Mt), NCL (11.5 Mt) and ECL (8 Mt). around 50 XI Plan projects spill-over. Optimistic Scenario:

During XII Plan, CIL envisages taking up around 70 expansion/new projects beside

XII Plan, against the anticipated production of 551.9 Mt in the TY of XI Plan in 2011-12 implying a CAGR of 7.57 %. The incremental coal production in the XII Plan is envisaged

The coal production is envisaged to reach 795 Mt in 2016-17, the terminal year of

to be 243.10 Mt against 121.07 Mt likely to be achieved in the XI Plan. This production is

achievable only if the requisite clearances are processed in fast-tracked route and delivered within the specified time schedule. The issues affecting land acquisition, R & R, bound manner. law and order and evacuation infrastructure will also have to be addressed in a time The envisaged incremental production in the XII Plan is 168 Mt, 6 Mt and 63.85 Mt

from CIL, SCCL and captive blocks & others respectively. Demand vis-a-vis Availability

In overall terms the gap between the projected demand of 980.50 Mt and the projected 35.50 Mt of coking coal and 230.0 Mt of thermal coal. If the production is enhanced to

domestic availability of 715.0 Mt works out to 265.5 Mt in 2016-17. This comprises of the level visualized in the optimistic scenario, the demand-availability gap would reduce to 185.50 Mt (Coking: 35.50 Mt & Non-coking 150.0Mt). This requirement would need to be met from imports. Coal movement & Infrastructure development been 52%. The share of other mode of transportation had been 27% by road, 15% by MGR In the year 2010-11, the share of rail in movement of coal in the Country had

and 7% by belt/rope. Against this, the coal movement matrix in the TY of XII plan (201617) is envisaged to be with 58 % share of rail, 25% share of road, 11% of MGR and 6% of 265.50Mt of imported coal. The plan for increased movement of imported coal is the reasons for increased share of railways in the XII Plan. Belt/rope. This includes movement of 800Mt of indigenous coal and coal products and

rakes/day out of which 165.6 rakes/day will be required on account of imported coal. loading, thus envisaged to be 7.1%.

In the end of XII Plan the average wagon requirement is envisaged at 446.4

Wagon loading in 2010-11 had been 295.6 rakes/day. The annualized growth in rail It is proposed to augment rail movement of coal through dedicated freight

corridors, matching wagon volumes and matching loading and unloading facilities at colliery and power station ends. A few railway infrastructure projects were identified for development at North

Karanpura, Mand-Raigarh and Gopalpur-Monoharpur block at Ib-Valley coalfields in the

XI Plan for evacuation of incremental coal production. However, constraints like land acquisition, clearance from Environment Ministry have delayed the same. These needs to for improving rail movement in the XII Plan in potential coalfields. movement Transportation of coal to railway sidings would be of vital importance to ensure of indigenous coal. It is proposed that infrastructure capacity for be expedited in XII Plan. In addition to these a few more feeder lines have been suggested

road into heavy duty all weather express coal corridor to cope up daily transportation requirement of 1.24Mt of coal to sidings, which would involve about 1.24 lakh trips/day.

transportation of coal needs to be planned, which includes conversion of fair weather

In order to cope up with the increasing pressure on transportation of coal, it is proposed

that the transportation of coal from new projects and also from washeries in pipeline to railway sidings should be planned through CHP/conveyor system. Sizing of coal is also identified as a thrust area for movement of planned quantity of indigenous coal. The total coal traffic at ports is envisaged to be 305Mt in the year 2016-17, which

includes 40Mt of indigenous coal for movement through coastal shipment. The port infrastructure, particularly in respect of hinterland connectivity and maintenance of draft The handling and stacking capacity at ports are also identified as critical issues. Lignite demand would be about 49.35 Mt. As against projected demand of 55.93 Mt in 2011-12, TY of XI Plan, the likely At the end of XI Plan (2011-12), the original XI Plan envisaged a total production are identified as critical issues for handling exponential growth in imported coal traffic. To ease out the load on railway infrastructure, development of alternative mode of

transportation, particularly inland waterways has been identified as a thrust area.

of 54.96 Mt (Tamil Nadu -24.23 Mt, Gujarat 22.26 Mt, Rajasthan 8.47 Mt). It is now

anticipated that lignite production would be 41.64 Mt (Tamil Nadu 22.85, Gujarat 15.14 Mt, Rajasthan 3.65 Mt) in 2011-12. The total production of lignite in the XI Plan achievement. 7.5%. Coal quality & Beneficiation Growth in production of indigenous coking coal from 32.1 Mt in 2006-07 to 49.5 Mt in 2010-11. Metallurgical coking coal production remained at about 18 Mt. Efforts period is anticipated to be 179.85 Mt against projection of 223.99 Mt, implying 80% In the XII Plan period, production in 2016-17 is envisaged to be 68.60 Mt and the

total envisaged lignite production in theplan peiod would be 290.16 Mt. which demand from power sector is envisaged to be 53.86Mt.

The demand of lignite is envisaged to be 71.96Mt in the TY of XII Plan, out of From a level of 5211MW in the TY of XI Plan, the capacity of lignite-based power

plant in the country is envisaged to be 7491MW in the TY of XII Plan, implying a CAGR of

are being made to build washeries for low volatile coking coal to enhance the supply of washed coking coal to steel plants. Total installed capacity of coking coal washeries is projected to increase to 48.98 MTY in 2016-17 from the present capacity of 29.88 MTY. Washed coking coal production of 6.37 Mt in 2010-11 is projected to increase to 13.9 Mt in 2016-17.

Total installed capacity of non coking coal washeries is projected to increase to 174.96 MTY in 2016-17 from the present capacity of 95.96 MTY. Washed non coking production of 32.64 Mt in 2010-11 is projected to increase to 114.46 Mt in 201617.

CIL has initiated action to set up 20 coking and non coking coal washeries with a washeries with 128.80 MTY capacity in 2nd phase.

total capacity of 111 MTY in 1st phase and thereafter 17 coking & non coking coal Capacity addition required for non coking coal washeries by the XIIth plan is 161 Mt which will reduce further with construction of some new washeries in private sector. Environment clearance relating to disposal of washery rejects is one of the main

issues causing delay in commencing construction of the washeries. Setting up new FBC plants using washery rejects as fuel need to be encouraged supported by tax holidays. Exploration of Coal & Lignite As on 1.04.2011, the national coal inventory stands at 285.8 Bt, out of which 114 Bt are 1.04.2011 with 6.14 in Proved category . Performance in XI Plan: a) Regional Exploration: Against a target of 1.94 lakh meters (revised to 1.47 lakh m during mid-term review of core group, CGPB-Com-V in 2009) in coal, 1.14 lakh meters (60%) of drilling is likely to be achieved and 7.07Bt of coal resources likely to be established. In Lignite, 1.85 Bt resources established by drilling 1.04 lakh meters. b) Promotional Exploration: 5.69 lakh meters (76%) is expected to be achieved, against a target of 7.50lakh meters of exploratory drilling expected to establish 20.05 Bt of coal and 3.22Bt of lignite resource. c) Detailed Exploration: Against a target of 5.00 lakh meters in CIL areas, 11.28 lakh meters (226%) of exploratory drilling will be achieved by CMPDI and its contractual agencies including MECL and 8.52 Bt of reserves expected to be proved during XI Plan. In SCCL area, 2.34 lakh meters of drilling (47%) will be achieved against a target of 5.0 lakh meters, expected to establish 0.50 Bt of reserves under Proved category. In Non-CIL areas, 8.15 lakh meters (60%) of drilling against a target of 13.5 lakh meters is envisaged to be carried out expected to establish 5.20 Bt of reserves by the end of XI Plan. In addition 0.55 Bt of reserves are envisaged to be Proved by different agencies in their own blocks against exploratory drilling of 1.44 lakh meters. In lignite, 1.309 lakh meters (94.75) of exploratory drilling will be achieved against target of 1.38 lakh meters may establish 2.46 Bt of resources. Exploration programme for XII Plan: a) Regional Exploration: GSI has drawn up a plan for drilling of 1.05 lakh meters in coal sector for XII Plan. GSI will be able to establish resource base of about 5.789Bt in coal. DMGR and CGMG have drawn up plan to establish 0.30 Bt of lignite resource by drilling 0.74 lakh meter. in Proved category .The inventory of lignite resources stands at 40.90 Bt as on

b) Promotional Exploration: 4.80 lakh meters of drilling in coal and 3.34 lakh meters in lignite has been envisaged in XII Plan to establish 16.64Bt of coal and 5.30Bt of lignite resource. c) Detailed Exploration: Keeping the coal production requirement beyond the XII Plan in view, a drilling programme has been drawn up for 54.46 lakh meters in CIL, SCCL and Non CIL areas. It is expected that 76.80 Bt of coal reserves will be Proved through Detailed Exploration. Similarly, a programme for Detailed Exploration for lignite involving 0.85 lakh meters of drilling has been drawn up. However, major part of the exploration activity will need to be outsourced. 19.03 lakh m of drilling has been envisaged to be undertaken during XII Plan targeting 16.22 Bt of resources to be brought in proved category. The enhancement of drilling activities during XII Plan will require substantial

capacity build up for coal core analysis and enhancement of capacities of exploration in private sector.

agencies in Govt/PSU to provide technical support for exploration to taken up by agencies

of drilling for Underground Coal Gasification. GSI and CMPDI will carry CBM related test studies and allied studies in 40 and 20 Boreholes respectively. CMPDI will conduct Shale gas studies in 25 Boreholes during XII Plan.

For development of Clean Coal/Lignite resource NLC will undertake 0.185 Lakh m

Coal/Lignite field by different agencies during XII Plan.

150 Lakh m of 2D HRRS and 50 Sq.km of 3DHRRS will be undertaken in different

Exploration in different coal, lignite, CBM and shale gas prospects for XII Plan has been estimated at MOC for promotional, detailed Non CIL and other related exploration projects. MINING TECHNOLOGY Technology is the key to higher production, productivity and safety. In India Rs. 4,507.88 crores, out of which Rs. 1,521.21crores will be required from

The total fund requirement of Preliminary/Regional, Promotional and Detailed

around 90% of the coal is produced by opencast method and only 10% by underground

methods. Bigger size of HEMM is finding greater application for higher production and productivity in opencast mines. 42 cum rope shovel shovels, 240 T rear dumpers and 33 cum Dragline have already been deployed. Future mines need to be planned for a maximum depth of 300 to 500 m with still larger sizes of HEMM, e.g. 56 cum Shovels 400/320/260 T dumpers and crushing conveying of coal and OB. More than 25 % of OC production comes from Surface Miners, eliminating the need for drilling, blasting as well as sizing.

Load Haul Dumps (LHDs) and Side Discharge Loaders (SDLs). Still about 12% of underground production comes from manual loading operation which needs to be totally phased out through suitable mechanisation during XII Plan period. The mechanised underground operation has come a long way over the years

The prevailing underground technology is semi-mechanised operation through

overcoming initial failures especially due to typical Indian strata condition. Considerable capacity and other equipment and machinery. The Powered Support Longwall and

change has taken place around the globe in development of roof support design and Continuous Miner technology is being applied with success in many mines and there is a

especially for greater depth. The allied areas like tele-communication, transport, ventilation, manriding system should also keep pace with the development. PRODUCTIVITY AND BENCH MARKING

need to popularise and establish these as predominant underground technology

Though the opencast mines have recorded a consistent increase in productivity over the automation of underground mines is the main cause of low productivity. Though average

The increase in productivity aims at efficient and effective utilization of resources.

years, the underground OMS is hovering around 0.7 tonne. The lower mechanization and manpower productivity in opencast mines is around 10 tonne per manshift, some coal approach like benchmarking. The lower availability and utilization of machinery in some mines and coal companies need to be addressed by Cutting down the idle and breakdown mismatch between excavating and transportation capacities and better discipline and training of workmen.

companies have attained a level of 20 tonne/ manshift. This calls for a proper analytical

time of machinery, better maintenance and timely procurement of spares, eliminating

Use of mass production underground technology like longwall, continuous miner,

system for coal dispatch, Modern communication and reporting system and proper monitoring at every level are required better productivity.

road headers etc. in underground mines, OITDS for all big opencast mines, rapid loading

FORMULATION AND IMPLEMENTATION OF COAL PROJECTS demand of the nation. Being site specific a new project involves large area of land and Formulation of coal/ lignite projects is the most vital area to meet the growing

R&R. Varied conditions of geology, geography, resource, quality, production potential development of infrastructure, evacuation system has to be suitably planned keeping in mind the future potential and the entire coalfield. reasons as, delay in forestry and Environment clearance, problems faced during land construction of CHP, railway siding or evacuation network problems etc.

need to be carefully assessed and addressed to during project formulation. The

Analysis of Cost and Time overruns in Coal Projects in India reveal the main

acquisition, R&R, law & Order, delay in Procurement of Equipment especially, HEMM, CIL had identified 145 projects with an ultimate production capacity of 391.22 Mty

in the XI plan period. Of these, 80 projects having ultimate sanctioned capacity of 195.78

in various stages of implementation. Out of these, 37 projects contributed 80.11 Mt in 2010-11. In 2011-12, 42 projects are expected to contribute 88.71 Mt. 65 identified projects of XI Plan period having a total estimated capacity of 195.44 Mty are under formulation/approval.

Mty have been approved till July 2011 for a capital investment of

11293.27 Cr. and are

expected to decline from 218.37 Mt in 2011-12, Terminal Year of XII Plan, to 192.42 Mt in 2016-17. Production from Ongoing Projects is programmed to increase from 227.63 Mt in 2011-12, to 300.18 Mt in 2016-17. Another 63.8 Mt is envesaged to come from

In the XII Plan period production from Existing and Completed projects of CIL is

future new/expansion projects to be taken-up during XII plan. As many as 70 new/expansion projects and around 50 spillover projects of XI Plan are to be taken up in the XII Plan period. In SCCL, 33 projects were envisaged for implementation with a capacity of 56.674

Mty during XI Plan Period. Out of 33 Projects, 24 (36.72 Mty) Projects have been taken up proposed to be taken up. MS Projects software, web based monitoring is to be adopted, package based contract enhanced empowerment of coal companies to be delegated down the line. ENVIRONMENTAL MANAGEMENT AND LAND ACQISITION AND R&R MoEF, prior Environmental Clearance (EC) is a must for all Mining Projects or activities capacity / change in product mix. As per the Environmental Impact Assessment Notification of September 2006 of For better monitoring of project implementation projects need to be monitored on

during the XI plan period and production started. During XII Plan, nine new projects are

management eliminating delays to be devised and powers at various levels as per the

including that involving Expansion and Modernisation/ Change in lease area / change in As per EIA notification 2006, the EMP clearance process should take maximum of

210 days but the general experience of coal companies is that it invariably involves some clearance) and after observing conditions imposed in St-1 clearance and payments for NPV, compensatory afforestation, etc., Stage- II clearance is accorded.

1 to 2 years time. Forestry clearance is granted in 2 stages, Stage- I (in principle

mining. Mines be grouped together on the basis of unique environmental concerns, of same owners are located in close proximity

The process of EC requires Re-engineering with specific provisions for coal

geographical separations for the purpose of preparing cluster-wise EIA/EMP where mines Over the years of implementation of coal mining projects it has been observed

that mine reclamation and mine closure have not been paid proper attention leading to

environmental concerns. Ministry of Coal has issued a set of guidelines mandating all the competent authority is mandatory.

mine operators to undertake reclamation for which approval of Mine Closure Plans by the Coal companies should take possession of the entire area of land required for the

life of the project at one go. Often, land records with State Authorities are inaccurate or

incomplete. This leads to delays in processing acquisition of land and disputes over ownership and size of land plots. Updating and computerisation of land records

supported through survey of land is essential. Govt. should make suitable legislation to stop construction on coal bearing land. CLEAN COAL TECHNOLOGIES challenges collectively referred to as Clean Coal Technologies (CCTs). Broadly CCTs include washing of coal, Coal Gasification, Coal Bed Methane/Coal Mine Methane extraction, Underground Coal Gasification, Coal Liquefaction or Coal to Liquids (CTL), coal conversion technologies like Integrated Gas Combined Cycle (IGCC) for power generation, Carbon Capture and Storage (CCS), etc. Government has laid thrust on clean coal technologies to mitigate adverse impact of coal usage on environment. Ministry of Coal (MoC) and Ministry of Petroleum &Natural Gas (MoP&NG) are The technologies employed and being developed to meet coals environmental

working together and government has offered 33 blocks in four rounds of bidding for CBM covering 17416 sq. km of area. The clean coal technologies related to combustion of coal are mainly being dealt

with in the power sector. These technologies are envisaged to improve the overall efficiency levels of power plants and reduce emissions of CO2. Specific coal consumption levels are also envisaged to reduce with adoption of these technologies. AUTOMATION & APPLICATION OF INFORMATION TECHNOLOGY information revolution of the country is gradually getting into mining industry and has a Automation is the key to high productivity, production and safety. The

significant impact on mine operations. The field of application is vast and almost unlimited. Top Down approach of is to be adopted for various business functions including IT infrastructure is to be laid at subsidiary Hqs. and to be extended to area and unit level to individuals desk. RESEARCH & DEVELOPMENT approach for Research and Development in coal, viz. Coal S&T Programme under the Soon after Nationalization of the coal industry in mid 1970s, the three pronged

Standing Scientific Research Committee (SSRC), in house Research and Development

Programmes of coal companies and Inter-Sectoral Science Technology Advisory Committee (IS-STAC) has been adopted during different Five Year Plans. R&D in coal is carried out under four major areas namely production, productivity and safety; coal beneficiation; coal utilisation; and environment and ecology.

of coal, Coal Bed Methane(CBM), Shale gas estimation & its recovery, 3D seismic survey, Study of structure of coal seam and roof rocks in hydro-fracturing areas.

Some of the emerging new areas of R&D are in-situ coal gasification, Liquefaction

year. Private sector participation in R&D work should be encouraged, research scholars, academicians and reputed overseas institutions for R&D should be involved.

Coal companies should consider investing at least 1% of their PBT in R&D every

SAFETY regulations framed thereunder in regard to safety and health. The Directorate General of Mines Safety (DGMS), under the Ministry of Labour & Employment is the regulatory Coal mining operations are governed by the Mines Act, 1952 and the rules and

authority to enforce the statutes relating to mine safety. There is a Standing Committee on Safety in Coal Mines, chaired by Minister in Charge of Coal, with representatives from (All PSUs & Private), State Mines & Mineral Development Corporations. The Committee Ministry of Coal, Ministry of Labour & Employment, DGMS, Trade Unions, Coal companies meets biannually to take stock of the safety situation in coal and lignite mines and suggests measures for bringing further improvement in the field of safety. In recent years, accidents in opencast mines due to transport equipment have

shown a rising trend. Measures such as Simulator to impart training for all HEMM established in all coal companies. HR REQUIREMENT imperative that human resource planning is given paramount importance.

operators and virtual reality training facilities at Central Training Institute need to be

In order to keep pace with the stupendous growth of the coal sector, it is Looking at CIL as a case study one can safely predict the requirements of human

resources for the national coal sector and work out a stratagem for upgrading skills for new levels of productivity and performance. develop the industrys human resources.

The coal industry needs an innovative framework to attract, select, deploy and A situational analysis reveals that CIL is emerging as a geriatric organization with CIL is faced with a shrinking base of experienced front-line supervisors. A host of

average organizational age over 50, with vanishing skill set based on experience.

training initiatives have been proposed to revamp the existing training infrastructure which includes: Strengthen the miners ability to act competently in emergencies; Use of simulation to enhance the perceptual judgment. Revamping of VTCs with state-of-the-art facilities. Use of simulators and computer aided techniques in Training Institutes; Transformation of IICM into an open university. Significant recommendations have been made which advocate CIL to surmount the

daunting challenge of human resource development at all levels - from front line supervisors to senior level executives - for a new order of performance. ACQUISITION OF COAL ASSETS ABROAD widening. The projected gap is estimated to increase from a level of 137Mt in the TY of XI

The gap between demand and indigenous availability of coal has been consistently

10

Plan to 265Mt in the TY of XII Plan and to further increase at the level of 423 Mt in the TY of 2021-22. While identifying the countries for acquiring coal assets issues related to the

international coal trade routes, the present import sources of India, port & logistics infrastructure facilities available in the source countries and the port facilities available in India need to be taken into consideration. players in controlling a strategic asset like coal, the aggressive Chinese model of Merger sovereign fund for developing infrastructure in the host countries and limited as constraints in acquiring foreign asset by Indian entrepreneurs. foreign acquisitions, Conservative attitude of the host countries in regards to allow entry to foreign

& Acquisition to control coal properties in different parts of the world, absence of any empowerment in respect of Indian PSUs to take strategic business decisions are identified Clear-cut Govt. guidelines allowing PSUs to be strategically aggressive for maiden policy to appoint Investment Bankers on nomination basis to

incentivize them for bringing exclusive deals which can be transacted on one-to-one basis, to do away with the distinction between listed and unlisted companies in respect of parameters for quick decision making and to fast track the entire Merger & Acquisition (M&A) transaction and inclusion of suitable clause for reviewing the proposed financial proposed for effective result. INVESTMENT ENVISAGED For the XI Plan period, the Planning Commission had approved a capital outlay of Rs.37,100.07 crores (cr.) for the Ministry of Coal. However, the overall outlay for the Ministry of Coal was revised downwad in the Mid-Term Appraisal (MTA) in September, 2009 to Rs. 32,623.55 Cr. Against the original approved outlay for CIL of Rs 17390.07 cr. acquiring foreign assets, introduction of definite tools/Guidelines related to financial

powers of the Board related to periodic foreign investment are some of the measures

it is anticipated that utilization would be Rs.13,400 cr. Similarly, against an approved outlay of Rs. 3340 Cr for SCCL, utlilization is anticipated to be Rs. 5070 Cr. The original approved outlay for NLC was Rs.15044 Cr, the anticipated utililsation is Rs. 7904.20 Cr. For Dept. Schemes against the approved outlay of Rs.1326 cr. the anticipated utilisation will come to Rs. 1500 cr.

production plan is Rs. 66,941.51 Cr. The outlay proposed for coal PSUs for the XII Plan is

The proposed Public Sector investment for the XII Plan for supporting their

Rs. 34,316.96 Cr more than proposed XI Plan outlay (MTA) of Rs. 32,623.55 Crores (excluding Departmental Schemes). The proposed outlay for Departmental Schemes in XII total plan outlay proposed for MoC for the XII plan is Rs.74,824.02 Crores (Rs.66941.51 support). Besides this ad-hoc provision of Rs.25,000 Crores has been made for Plan to be supported through domestic budgetary support is Rs. 7,882.51 Cr. Thus the Cr for PSUs + Rs. 7,882.51 Cr for departmental schemes through domestic budgetary acquisition of coal assets abroad by CIL and Rs.10,000 Crores for development of coal

blocks in Mozambique. Total plan outlay envisaged for Coal sector, excluding captive coal

11

block development, is Rs.1,09,824.02 Crores which includes investment abroad proposed by CIL. Against the estimated IEBR position of Rs. 1, 28,537.34 Cr. the proposed plan

outlay of PSUs is Rs.66, 941.51 Cr. While the resource position of CIL is surplus, the companies have to depend on EBR. schemes of MOC, additional investment is required in coal sector for development of yielded a production of 34.64 Mt. At the end of the XI Plan, it is anticipated that 34

resource position SCCL and NLC is not sufficient to meet the plan outlay, and the Besides, the above investment position for public sector and departmental

captive blocks and washery. Till 2010-11, production commenced in 28 blocks and blocks will be in operation and the likely production is expected to be 36.60 Mt. It is

estimated that the production from Captive coal blocks would increase to 80.7 Mt (incremental production of 44.55 Mt) in the terminal year of XII plan. It is expected during XII Plan period for achieving envisaged level of production. POLICY INITIATIVES ON COAL SECTOR REFORMS In the last few years, various committees under Government of India have made reviewed the status of implementation of key areas of policy / reforms identified by each were reviewed: recommendations on reforms required in the coal-mining sector. The sub-committee of these different committees. Reports / recommendations of the following committees another Rs.20-25 thousand crores will be invested by the promoters of captive blocks

Working Group report on Coal and Lignite for XI Plan - 2006 Coal Vision 2025 Integrated Energy policy - 2006 Expert Committee on Road Map for Coal Sector Reforms - 2006 Report of the Committee on National Mineral Policy - 2008

above reports, but not yet taken up for implementation. The sub-committee also and challenges being faced by the coal mining industry. Based on the deliberations, some of the key initiatives that the sub-committee identified for taking up in the XII Plan are discussed below:

Further the sub-committee discussed the key areas of reforms / policy identified in the

discussed the additional areas of reforms that need to be taken up based on the issues

Suggested policy reforms in XII Plan

Exploration and Project Formulation 9 explored coal blocks for mining by private and public sector. 9 standards such as JORC / UNFCC should be taken up Coal exploration to be speeded up exponentially to ensure availability of more A comprehensive study to classify countrys coal resources as per international

12

capabilities.

Need to strengthen the institution of RQP through greater scrutiny of their

Clearances and Licenses Environmental and Forest 9 should be set up (Single window concept) with senior representation from the concerned departments. 9 To ensure a leaner, transparent and efficient approval process, there is a need to number of levels and stages should be reduced. To expedite clearances a co-ordination committee at the Centre and State level

ensure Forest and environmental clearances in a time bound manner. Also the

Clearances and Licenses Land Acquisition and R&R 9 acquisition 9 Enactment of a central legislation to ensure uniform R&R policy and speedy land

Creation of a mechanism to prevent permanent industrial establishments and habitation over coal bearing areas Coal companies should actively restore post mining land and return back to the local communities. Captive Coal Mining To take appropriate measures for increasing coal availability from captive coal mining blocks by amending Coal Mines Nationalization Act. Future blocks should be allocated on the basis of a transparent bidding process, with bidders placed on a similar platform.

9 9

Captive / MDC / Other Government Company block owners 9 their blocks is their inability to create / access infrastructure for evacuation of coal to their end use plants. The recommendations are: 9 Create an institutional mechanism for planning and development of common infrastructural facilities for use by all the block owners 9 A Local area Development authority should be created with participation of block comprehensive plans for infrastructural facilities and requirements in each identified coalfields areas. allocates, coal mining companies and the respective state governments to develop One of the key challenges being faced by these block owners in development of

Regulation and Governance in Coal Sector Industry structure 9 9 9 The coal sector regulator should be set up on a priority basis National Coal Council to advice Ministry of Coal should be set up Either organization be created to develop and maintain the repository of all geological CMPDI is made an independent organization or an independent

information in the country on the lines of CEA or DGH

13

Sovereign fund.

Government should enable the acquisitions of coalmines abroad by setting up a

Increasing Underground coal mining development in the country 9 performance in underground mines 9 Coal companies should develop a comprehensive plan for improving its

Government should consider options such as cost plus pricing, cross subsidies, fiscal incentives etc to improve the potential returns currently available from underground mining activities

14

MARKETING STRATEGY & GRIEVANCE REDRESSAL MECHANISM positioning Identification of consumers need, segmenting the market and accordingly different grades of coal and developing product features by way of

beneficiation, reducing band-width of the existing grades, sizing, R&D for developing appropriate burning equipments have been identified as important strategy areas for optimum utilization of the fossil fuel. and also to link pricing with international benchmarks for bringing equilibrium in coal market and also to encourage economic use of the fuel. It has been felt necessary to open up pricing of indigenous coal to market force

been highlighted. The existing system of supply of coal through FSA cannot be made implemented.

field to all coal consumers old or new, for dissuading diversion of coal to gray market has

The need to review the existing coal distribution policy for providing level playing

effectively operational, till such time the system of FSTA, as envisaged by the NCDP, is The importance of optimization of available logistic infrastructure through source

rationalization, investment in logistics infrastructure and development of end-to-end modes of transport of coal have been identified as the important areas for building up the logistics strategy of XII Plan period. Computerization and networking of all road and railway weighbridges, capturing logistics solution companies in PPP model, and harnessing the potential of alternate

real time data on stock situation at despatch points and making it available to all

stakeholders, integration of entire rail despatch system with FOIS network of IR,

launching GPS enabled truck despatch system and developing teleconferencing facilities enabled sales management.

with all dispatch points have been identified as the thrust areas for introduction of ITDevelopment of 24x7 on line grievance registration and response system, creating

on-line retrievable database for monitoring purpose across the hierarchy of the

management of coal companies, introduction of online suppliers performance rating making power comprising of representatives from coal companies, Ministry of coal, the Sub-Group for developing an effective grievance redressal mechanism.

system, formation of a fixed tenure adjudicating/reviewing Board with adequate decision Railways and ministries of important consuming sectors are some of the suggestions of

15

CHAPTER-1 Review of XI Plan Performance 1.0 Plan period-wise coal production trend and annualized growth rate (CAGR) are as

under:

Plan Period I Plan II Plan III Plan IV Plan V Plan VI Plan VII Plan VIII Plan IX Plan X Plan XI Plan (P) Source:

Terminal Year 1955-56 1960-61 1965-66 1973-74 1978-79 1984-85 1989-90 1996-97 2001-02 2006-07 2011-12

Production (Mty) 38.40 55.72 70.30 78.18 102.02 147.44 203.36 289.32 327.79 430.83 554.00

CAGR (%) 7.73 4.76 1.24 5.47 7.24 6.64 4.76 2.53 5.62 5.16

Coal Controllers Organisation

Year-wise, sector-wise demand vis--vis supply of coal during X Plan period is given in Annexure 1.1 1.1 Demand-Supply scenario of XI Plan

Coal demand for the terminal year of XI Plan (2011-12) was revised from 731.10 Mt to

713.24 Mt during Mid-Term Appraisal (MTA) by Planning Commission. During the process of formulation of Annual Plan 2011-12, the demand was further reassessed at revised from original level of 680.0 Mt to 629.91 Mt by MTA, which was subsequently 696.03 Mt by Planning Commission/Ministry of Coal. Indigenous supply projection was revised to 559 in the Annual Plan of 2011-12, thereby finally leaving a gap of 137.03 Mt. This gap is envisaged to be met from projected import of coal (29.44 Mt coking & 107.59 Mt non-coking) as against initial projection of 51.10 Mt (40.85 Mt coking and 10.25 Mt Document for XI Plan. Projected Demand / Supply Scenario in XI Plan Terminal year of XI Plan (2011-12) Particulars XI Plan Group Demand Steel Power (Utilities) 68.50 483.00 68.50 473.00 46.67 460.00 Working Mid-Term Appraisal Annual Plan 2011-12

non-coking) made by the Working Group on Coal & Lignite for formulation of Plan

(in Mt)

16

Projected Demand / Supply Scenario in XI Plan Terminal year of XI Plan (2011-12) Particulars XI Plan Group Power (Captive) Cement Sponge Iron Others (Fertiliser, Paper, etc) Total Demand Supply/Offtake CIL SCCL Others Total Indigenous Supply Demand-Supply Gap to be met through imports Import-Coking Import-Non-Coking 57.06 31.90 28.96 61.68 731.10 680.00 520.50 40.80 118.70 680.00 51.10 40.85 10.25 Working Mid-Term Appraisal 47.00 33.35 28.96 62.43 713.24 629.91 486.50 47.00 96.41 629.91 83.33 42.48 40.85 51.00 56.00

(in Mt)

Annual Plan 2011-12 40.00 28.89 30.47 90.00 696.03 559.00 452.00 *

559.00 137.03 29.44 107.59

* Production projection is 447 Mt, Stock liquidation is 5 Mt Year-wise and sector-wise demand and supply of coal during XI Plan period is given in Annexure 1.2 1.2 Power Sector:

During Eleventh Plan, PLF performance of power stations though initially improved from trend in subsequent years and had been 75.4% in 2010-11. Apparently, capacity addition power leading to running of plants in lower PLF. Actual capacity addition of coal based power plant by the end of August2011 is 29740 MW.

77.9% in 2006-07 (terminal year of X Plan) to 78.9% in 2007-08, shown a decreasing during the first four years of XI Plan was at a higher pace in comparison to demand of CEA anticipates that another

11401 MW capacity would be added during the period September2011 to March2012.

Thus, total capacity addition anticipated by CEA during Eleventh Plan is 41151 MW. Thus, as per indication of CEA, 28% of the total capacity addition of the XI Plan will come during the last seven months (September11 to March12). 1.3 Steel Sector: Production of hot metal in Mt and consumption of coking coal by steel sector during XI Plan period is summarized as under:

17

Figs. in Mt Year X Plan (2006-07) XI Plan 2007-08 2008-09 2009-10 2010-11 2011-12 (BE) (Source: Planning Commission) Demand vis--vis indigenous coking coal off-take for the steel sector is given below: Figs. in Mt raw Year Demand of raw Coking Coal as assessed in Annual Plan X Plan Demand of Indigenous raw Annual Plan Coking Coal as per Indigenous Coking take 36.76 36.78 36.66 36.68 45.14 39.02 37.66 39.39 40.00 46.67 Hot metal production 31.83 Coal consumption 35.17

coal off-

(2006-07) XI Plan 2007-08 2008-09 2009-10 2010-11 2011-12 (T) (Annual Plan)

43.70 38.00 44.00 44.52 50.51 46.67

18.51 18.00 26.20 17.26 17.92 17.23

17.30 16.99 16.58 16.45 17.83 17.23

Source : Annual Plan for Demand & Coal Controllers Organisation for actual offtake Dwindling reserve of requisite quality of coking coal had been the main reason for less supply of coking coal to the steel plants.

The details of coking coal imports by steel manufacturers in the first four year of XI Plan are as under: Year 2007-08 2008-09 2009-10 2010-11 (Source: Coal Controllers Organisation) Coking coal import (in Mt) 22.03 21.08 24.69 28.00 (provisional)

18

1.4

Sectoral coal consumption pattern:

Sector-wise Year-wise and major sector-wise consumption pattern in Eleventh Plan period is shown as under:

Sectoral Consumption Pattern of Raw Coal in XI Plan (in Mt) Coking Year 2006-07 2007-08 2008-09 2009-10 2010-11* (Original ) (MTA) 2011-12 2011-12 2011-12 (Annual Plan) Steel & Coke oven Power (U) 307.92 332.40 362.08 364.60 383.98 483.00 473.00 Power (C) 28.13 29.31 32.74 51.33 28.99 57.06 47.00 Non-Coking Cement 19.67 21.27 20.09 21.61 27.58 31.90 33.35 Sponge Iron 17.47 20.92 19.78 23.10 18.76 28.96 28.96 Others 55.51 61.37 76.67 86.03 110.98 61.58 62.43 Total 428.70 465.27 511.36 546.66 570.29 662.50 644.74 Total 463.87 504.29 549.02 587.80 616.12 731.00 713.24 8.7 8.9 7.1 4.8 18.6 15.8 Growth (%) Annual

35.17 39.02 37.66 41.14 45.83 68.50 68.50

46.67

460.00

40.00

28.89

30.47

90.00

649.36

696.03

13.0

CAGR (%) years

(06-

in four

6.80

5.70

0.8

8.8

1.8

18.9

7.4

7.4

07 to 10-11)

Source : Coal Controllers Organisation (Figures for 2010-11 are provisional) 1.5 Coal Production:

The company-wise coal production performance during Eleventh Plan Period is as follows: (Figures in Mt) Company CIL SCCL Other Public Sector * Other Private Sector ** Captive Mining Total TISCO/Meghalaya TY X Plan Actual 360.91 37.71 1.77 12.83 17.61 430.83 Terminal Year of XI Plan (2011-12) Working Group 40.80 2.52 12.10 104.08 680.00 520.50 MTA 486.50 47.00 2.52 12.10 81.79 629.91 AP 2011-12 Target 51.00 3.55 14.20 38.25 554.00 447.00

* DVC/IISCO/JKML/JSMDCL/WBPDCL/SAIL/DVC-EMTA/APMDTCL, ** Source : Coal Controllers Organisation & MOC/Planning Commission

19

Company-wise production performance against target set during XI Plan Period is given below: Year 2006-07 2007-08 2008-09 2009-10 2010-11 (T.Y. X Plan) (Figures in Mt) Particulars Actual Target Actual Target Actual Target Actual Target Actual 2011-12 Original Target Anticipated Source: Coal Controllers Organisation The incremental coal production envisaged originally in the plan period under review was 249.83 Mt as against 103.04 Mt and 38.47 Mt achieved during Tenth Plan and Ninth Plan indigenous production during XI Plan is expected to be 109.07 Mt. respectively. Expected achievement in 2011-12 is 539.90 Mt. Therefore, incremental (T.Y.XI Plan) Projection CIL 360.91 384.51 379.46 405.00 403.73 435.00 431.26 460.50 431.32 520.50 447.00 435.00 SCCL 37.71 38.04 40.60 41.50 44.55 44.50 50.43 46.00 51.33 40.80 51.00 51.00 Others 32.21 37.95 37.02 50.79 44.48 52.83 50.35 65.87 50.42 118.70 56.00 53.90 Total 430.83 460.50 457.08 497.29 492.76 532.33 532.04 572.37 533.08 680.00 554.00 539.90

Coal production of 118.70 Mt from TISCO, IISCO, DVC, Meghalaya field and other captive block production as envisaged in the original plan document, is now planned to be about Mt. By the end of XI Plan 38 number of allocated captive blocks are expected to be in the terminal year of X Plan (2006-07). Company-wise, year-wise coal production performance during XI Plan period is given in Annexure 1.3. 1.6 Washed Coking Coal Production 56 Mt in 2011-12. Out of this, production from captive blocks is expected to be 38.25 operation as against 11 such mining blocks in operation with production of 17.61 Mt in

The availability of adequate quality and quantity of washed coking coal form indigenous coking coal, washed coking coal and import of coking coal and coke for steel sector during XI Plan period is given below:

sources is declining and the import of coking coal is increasing. The production of raw

20

Figs. in Million Tonnes Year Raw CIL 2006-07 XI Plan 2007-08 2008-09 2009-10 2010-11# * 10.16 9.30 9.58 9.99 7.90 8.00 8.15 7.85 18.07 17.30 17.73 17.84 3.83 3.68 2.97 3.19 3.34 3.50 3.58 3.18 7.17 7.18 6.55 6.37 22.03 21.08 24.69 28.00 4.25 1.88 2.36 2.00 9.81 (metallurgical) production Others* 7.42 coking coal Washed CIL 3.81 production coking coal Total 7.03 Import Coking coal 17.88 Coke 4.69

Total 17.23

Otrs* 3.22

(TY X Plan)

Source: Coal Controllers Organization Others TISCO/IISCO # The import figures for 2010-11 are provisional

The performance of coking coal washeries is adversely affected mainly due to nonavailability of desired quality and quantity of raw coal feed from existing mines of CIL. There is an urgent need to review the situation and to take suitable steps to prepare road

maps for improving the availability of washed coking coal from the domestic sources. Suitable technology needs to be firmed up for utilizing low volatile medium coking coal and for augmenting coking coal production. 1.7 Demand / Supply Management

Summarized information related to Demand / Supply management during Eleventh Plan period is given below: (Figures in Mt) Particulars Demand (Annual Plan) Coal Consumption Target (Annual Plan) Actual Indigenous Import Gap Pit-head stock of coal Supply/Offtake X Plan 2006-07 474.18 463.87 430.10 430.83 420.79 43.08 10.31 44.35 2007-08 492.50 504.29 460.50 457.08 454.49 49.80 -11.79 46.78 2008-09 550.00 549.02 497.29 492.76 490.02 59.00 0.98 47.32 XI Plan 2009-10 597.98 582.25 532.33 532.04 514.50 67.75 15.73 64.86 2010-11 * 656.31 616.13 572.37 533.08 524.13 92.00 40.18 71.47 559.00 137.03 0.00 554.00 2011-12 696.03

Coal Production

Source: Coal Controller Organisation & MOC/Planning Commission * Figures for 2010-11 are provisional

21

CHAPTER - 2 COAL DEMAND 2.1 Methodology for demand assessment:

End-users projections of coal requirement, wherever available, has been used for preparing the basic framework to assess sector-wise likely demand of coal. At the same time the macro-economic long-term goals set by the Planners, the trend of technological

development in different coal consuming sectors, previous trend of consumption and projections given in the reports of various expert Committees have also been taken into perspective to arrive at different demand modules.

The sector-wise assessment of coal demand made by various expert groups from time to time for perspective planning of coal sector is given in Annexure 2.1. 2.2 2.2.1 Analysis of Demand Estimates Power Sector (Utilities)

In the XII Plan, the massive capacity creation and the corresponding increase in thermal power generation is envisaged. CEA has indicated coal based capacity addition of 79,010 MW (14560 MW in Central Sector, 12081 MW in State Sector and 52370 MW in Private to come up through private sector.

Sector). Thus major thrust (66%) in capacity addition programme in XII Plan is envisaged

The Central Electricity Authority (CEA) has given the following indicative assessment of coal based generation. Particulars Target X Plan XI Plan (up to Aug'11) Sep'11-Mar'12 (Expected) XI Plan XII Plan 2012-13 2013-14 2014-15 2015-16 2016-17 XIII Plan (2021-22) 70,000 42,625 79,010 19,305 21,795 23,690 8,940 5,280 18,308

Capacity Addition (MW) Actual/Ant 8,575 29,740 11,401 41,151

CEA has indicated anticipated installed coal based power generation capacity of 1,11,058

MW in the beginning of the XII Plan. The envisaged coal based capacity creation during XII

Plan is 79,010MW. Thus, the capacity augmentation during the XII Plan period is envisaged to be 71 % of the installed capacity at the beginning of the XII Plan. However,

22

actual coal-based capacity addition in X Plan was only 8,575 MW and for XI Plan, been 29,740MW and 11401 MW is expected to come up in remaining months of 2011during the last seven months.

anticipated capacity addition is 41,150 MW (Actual addition in XI Plan till August11 has 12). It means that 28 % of the capacity addition of the XI Plan is expected to come up

Further, it has been mentioned by CEA that over and above these 79,010 MW, another 38,905 MW coal based capacity is under various stages of execution.

The regional distribution of the above creation as indicated by CEA is as under: Region Projected end of 31.03.2017 (MW) Northern Western Southern Eastern+ NE Total 38,612 82,651 32,972 35,833 1,90,068 XII Plan Expected Capacity at Plan 01.04.2012 (MW) 27,092 39,176 22,832 21,958 1,11,058 the beginning of XII Capacity (MW) %

Addition 11,520 43,475 10,140 13,875 79,010

increase 43 111 44 63 71

From the above, it may be seen that maximum creation of capacity has been projected for Western Region followed by Eastern & NE Region.

Corresponding to the above capacity creation, the regional projection for generation and coal requirement at the end of XII Plan as given by CEA are as under: Region Projected Generation (BU) At the end of (2016-17) 212.00 582.00 188.00 173.00 1155.00 XII Plan

Projected Coal Requirement(Mt) At the end of XII Plan (2016-17) 115 424 137 126 842

At the end of XI Plan (2011-12) 152.00 203.00 135.00 110.00 600.00

Northern Western Southern Eastern Total

The above requirement of coal is given by CEA based for the coal based power projects in requirement has been worked out assuming specific coal consumption of 0.73.

the XII Plan, wherein coal-based generation is assumed to be 1155 BU and coal

23

The list of power plants indicated by CEA to come up in XII Plan is given in Annexure-2.2. These projects have been grouped into different categories based on the status as (i) Projects under implementation (ii) Accorded Long-term Linkage/LoA or allocated coal projects and (iii) new projects.

block for captive mining or an identified imported coal based project, i.e. source tied-up

The summary of Projects under implementation, source tied-up and new projects are as under:

Sector-wise Capacity Addition in XII Plan (Figures in MW) Status Projects under implementation Source Tied-up Projects New Projects Total Central 10600 3960 0 14560 State 11330 0 750 12080 Private 50390 0 1980 52370 Total 72320 3960 2730 79010

Incremental Coal Requirement for Terminal Year of XII Plan 2016-17 (Figures in Mt) Status Projects under implementation Source Tied-up Projects New Projects Total Central Sector 49.00 7.75 0.00 56.75 Sector 54.24 0.00 3.68 57.92 State Private Sector 0.00 9.30 238.13 228.83 Total 332.07 7.75 12.98 352.80

As per projection of TERI, coal requirement for Power Utilities at the end of XI Plan would

be 462 MT for generation of 738 BU power. Specific coal consumption thus works out to

0.627 Kg/Unit. TERI had projected that all India Power demand would touch 1015BU and 1291BU in the terminal years of XII & XIII Plans with corresponding coal requirement of 592.5 & 738.28 Mt respectively.

It may be worth noting that so far, actual coal based generation had always been far less than what had been projected by TERI as demand as shown in the table below: Power Year Coal

Demand by TERI (BU)

Actual/Proj ection (BU) Generation

Coal

projected

Demand

Consumption /Requiremen t projected by CEA (Mt) 300.561 377.87 444.00 804.88

Consumption (Kg/unit) TERI Actual/ 0.697 0.705 0.74 0.697

Specific Coal

projected by TERI (Mt)

Projection 0.656 NA 0.626 0.584

Projection

2006-07 2010-11 2011-12 2016-17

544.03 NA 738.14 1014.76

431.13 535.27 600.00 1155.00

356.82 NA 462.25 592.50

24

Following points emerge from the above table: 1. While actual generation had been invariably less than the demand projected by demand projected by TERI. 2.

TERI, CEA has been envisaging generation at XII Plan at a higher level than the CEA projects CAGR of 14% in generation during XII Plan period against actual CAGR of 6.8 expected to be achieved during XI Plan (the growth projected is subject to capacity addition of 11401MW during the last seven months of the current Fiscal) 3. kept at a much higher level to arrive at coal requirement figure.

Going against the forecast of TERI and actual trend, specific coal consumption is

Out of the projected capacity addition of 79,010MW, about 17.7% projected to consume

would be coming under the purview of MOEF stipulation. Besides another 5.1% capacity

17.1% coal are located at a distance of more than 1000 Kilometer distance and thus

addition would be on the basis of imported coal, whose coal requirement would be 3.6% of the coal requirement for additional capacity. Thus Specific coal consumption of almost 23% of new capacity would be substantially less than the national average.

Scenarios that are emerging for coal demand of Power Utility sector on the basis of the projection of CEA and analysis of different expert agencies is given in the table below: Scenario Scenario-I Scenario-II Basis CEA projection TERI Projection of demand for power and current trend of specific coal consumption of 0.705Kg/Unit 17th Electric Power Survey Report, Assuming 70% of

Quantity (in Mt) 842 715

total Electricity demand is coal based and sp. Coal Scenario-III

consumption of 0.7Kg/Unit. (The requirement remains unaltered even if the contribution of coal based power generation is assumed at 67%, in line with the current is kept at the same level of CEA at 0.73)

682

trend of 66.9% in 2009, and specific coal consumption

Out of these three options, Scenario-III appears to be the most realistic. Generation of electricity would be ultimately dependent on demand and not on capacity build-up. The projections given by CEA are essentially based on likely commissioning schedules of the plants and not on demand of electricity. It is of common experience that coal-based capacities remain unutilized or under-utilized during good monsoon for downfall of demand. Therefore, any assessment of coal demand for power generation should be on the basis of the demand for electricity. The mismatch between capacity addition and demand of power stated to be is the reason for drop in PLF in 2010-11 to 75.4% from a level of 78.9% in 2007-08. Electric Power Survey (EPS) makes detail demand analysis of EPS, prepared in March 2007 can still be used for assessment of coal demand.

power at the State level. Since 18th EPS is not yet finalized, the demand projection of 17th

25

CEA has indicated year-wise capacity addition programme, the summation of which coal requirement of 352.8Mt for these 79010MW in 2016-17. CEA indicated total coal requirement for power (utilities) during the XII Plan period is estimated as under: Year 2012-13 2013-14 2014-15 2015-16 2016-17 1.2.2 Steel Sector Coal Requirement (Mt) 466 545 631 663 682

works out to 79010MW at the TY of XII Plan. CEA has also indicated that the incremental requirement of 842Mt in 2016-17. Based on these inputs of CEA, year-wise coal

Demand of Coking coal in XII Plan Various economic reports and projections of Chambers of Commerce have predicted healthy growth of steel sector in the coming years. The National Steel Policy (NSP), 2005 110 Mt in 2019-20. The annualized growth was therefore projected at 9.8%. had envisaged that the steel production would go up from a level of 27 Mt in 2004-05 to

brown-field, Ministry of Steel in 2009-10 estimated that by the end of XI Plan, the production capacity would be increased to 124.06Mt, which after taking into account the MOUs signed by private players with State Government is likely to reach 293Mt by the end

However, based on the assessment of current ongoing projects both in green-field and in

of 2020. However, many of the brown-field projects are behind schedule and some of the major green-field projects through MOU route have been facing rough weather. While, capacity building continues to be a limiting issue on account of indigenous availability of of 98Mt to 114Mt and the same is estimated at 137Mt by other industry experts.

steel, as per the projection of SAIL the demand of steel in 2020 would be within the range

During 2009-10 steel production had been 56.4Mt. The annualized growth in steel 9.3% till 2019-20.

production, on the basis of most optimistic projection on demand of steel works out to

Ministry of Steel has indicated the following in respect of year-wise crude steel production vis--vis coking coal requirement for XII Plan period: 2011-12 Steel Production Coking Coal for Steel Sector Projected Crude 73.7 46.6 2012-13 83.7 53.1 2013-14 94 60.7 Figs. in Mt 2015-16 116.8 72.5 2016-17 128.1 77.1

2014-15 104.6 66.4

26

The projection of growth in steel production as indicated by MOS works out to 12.4%

against optimistic projection of the industry at 9.3%. Coking coal consumption and crude steel production ratio has been projected by MOS at 0.60 against NSPs projection of 0.64.

NSP has projected a requirement of 70 Mt of coking coal in 2019-20 for production of

110 Mt of steel. Coking coal consumption ratio, as envisaged in the Policy, thus works in consumption of coking coal has been envisaged by the Policy at 5.3%. While making

out to 0.64. Coking coal consumption in 2004-05 being 32.07 Mt, the annualized growth the forecast, they assumed that while 60% of the new capacity would be through blast furnace route, 33% would be from sponge iron unit and 7% would be using other available technology.

Coal Vision 2025 Document of MOC envisages requirement of 69Mt and 90Mt of coking coal respectively for 2016-17 & 2021-22 at 8% GDP. As per the consumption norms predicted by NSP, the projected coal requirement of Coal Vision Document would be sufficient to produce 107.8Mt and 140.6Mt of steel in 2016-17 and 2021-22 against the steel demand ranges of 90 to 105Mt in 2016-17 and 126 to 164 Mt in 2021-22 indicated

by different expert agencies in steel sector. Since the coking coal consumption norm of NSP applied on the different steel demand projections are more or less corroborating also with the overall coking coal requirement projections of Coal Vision Document which is another independent study outside Steel Industry, it would be logical to apply the norms under: of NSP over the three steel demand scenarios for projection of coking coal requirement as Figs. in Mt 2016-17 77.1 57.6 59.1 67.2 2021-22 -80.5 84.0 104.7

Scenario Scenario-I MOS Projection Scenario-II- NSP Study Scenario-III SAIL Study Scenario-IV Optimal steel demand

In view of the capacity enhancement programme, both in Public Sector and in private sector through MOU with the State Governments, the projection of NSP appears to be too conservative. The projection of SAIL is also almost at par with the NSP. Past trend shows that steel plants normally utilize about 89% of the available capacity which means about 154Mt steel production capacity is required for producing 137 Mt of steel. The envisaged capacity, however in 2019-20, being 293 Mt, even if 60% capacity materialization programme fructifies, the steel production would reach at the optimal demand level. Government for urbanization and providing shelters for all through various schemes, it is

Moreover, considering the macro-economic perspective and the emphasis given by the felt prudent to assess coal requirement on the basis of the optimal steel demand projection. Further, the requirement of coking coal worked out on the basis of the Scenario-IV appears to the most realistic demand of coking coal for the TY of XII Plan. optimal steel demand is within the boundary of the projection of Ministry of Steel. Hence

27

The year-wise requirement of coking coal, however, is being projected as under in line

with the indication provided by MOS, since the steel demand projections by various expert groups were on the long-term basis while the projection of MOS is for year-onyear basis. Year Figs. in Mt 2012-13 46.3 2013-14 52.9 2014-15 57.9 2015-16 63.2 2016-17 67.2

Requirement 1.2.3

Cement Sector

Cement sector has undergone substantial technological changes. With more emphasis

now on dry process by cement plants, the specific coal consumption in cement plants has coal consumption has reduced from a level of 154Kg for one tonne of clinker production in 2001-02 to 121Kg in 2008-09.

shown immense improvement over the years. As per the data available from the sources,

given in the table below:

Important indicators in respect of trend in cement production and coal consumption is

Year IX Plan X Plan

Capacity (Mty)

Production (Mt)

Cement

Coal Consumption (Mt)

Actual/Projected consumption Kg/Tonne 154 126 Specific coal

(2001-02) (2006-07) 2007-08 2008-09

129.76 163.88 198.10 221.44

102.4 155.99 XI Plan 168.31 181.60

15.81 19.67 21.19 21.93

126 121

Similar figures have not been provided by DIPP from 2009-10 onwards.

Apart from the technological development in cement production, improvement in blending-mix with substantial use of imported coal and Pet-coke has also contributed in bringing down the specific coal consumption. Trend of cement production, as indicated by Planning Commission, during the Annual Plan exercise of 2011-12, is given in the table below: Year 2006-07 2007-08 2008-09 2009-10 2010-11(RE) 2011-12 (BE) CAGR projected during XI Plan (%)

Cement production (Mt) 155.66 168.31 181.61 201.06 236.16 262.61 11

28

CMA has indicated likely cement production of 321.35Mt for its constituent members

units (excluding ACC & Ambuja Group) in the terminal year of XII Plan (2016-17). CMA against actual growth of 9% during the first three years of XI Plan. If the industry growth furnished by DIPP, the total likely production for them works out to 72.86Mt in 2016-17. Thus the total cement production in the TY of XII Plan, as per the data furnished by DIPP cement would be as under: Year 2012-13 2013-14 2014-15 2015-16 2016-17

has projected 12% growth in production of kiln in XII Plan for its constituent members

is applied over the production figures of 2008-09 of ACC & Ambuja Group Units

works out to 394.21Mt. On the basis of this projection the year-wise likely production of Figs. in Mt ACC & Ambuja 46.30 51.86 58.09 65.06 72.86 Total 251.98 281.74 315.08 352.40 394.21

CMA Members 205.68 229.88 256.99 287.34 321.35

Considering exclusive use of indigenous coal, CMA has indicated requirement of coal at 17% of the projected production. Thus the requirement works out to 67.01Mt.

CMA has indicated that the percentage contribution of different fuels used for production of cement clinker during first four years of XI Plan had been 66% of indigenous coal, 22% of imported coal, 11% of petcoke and 1% of lignite. As per industry information, there is substantial capacity addition in production of pet coke, which would make its use more

popular in cement plants. Further, coastal cement plants were the pioneers in using imported coal at the Country. Taking advantage of location-specific competitive landed cost, even when import duty was substantially higher (35%) than present level (5%), they started using imported coal since late nineties even by forgoing indigenous coal allocated for use of alternate fuels like lignite, pet-coke has already been established for more than

by Standing Linkage Committee (Short-term). The technical feasibility and supply chains a decade in Gujarat and Rajasthan based cement plants. As such, there is no reason for cement plants to change the pattern of use of different fuels in the mix in the foreseeable future. Therefore, assessment of coal requirement based on the current trend of consumption appears to be most realistic, which works out to 47.31Mt.

The year-wise coal requirement of cement sector during XII Plan period on the basis of current trend of coal consumption would be as under: Year 2012-13 2013-14 2014-15 2015-16 2016-17

Cement production (Mt) 251.98 281.74 315.08 352.40 394.21

Coal Requirement (Mt) 30.24 33.81 37.81 42.29 47.31

29

1.2.4

Captive Power:

particularly, attractive for different industries. It has been emerging as the major coalconsuming sector over the years. Apart from traditional captive power generating

With the introduction of Electricity Bill 2003, captive power generation has become

industries like Aluminium, Cement or Steel Plants, even comparatively smaller endeavours have also come up with CPP units. However, authentic data pertaining to actual coal consumption for captive power generation is not available, reasons being non-availability of an Umbrella Organization monitoring activities of individual units and frequent transfer of energy between the power and process plants during actual operations. Currently fertilizer sector is using coal predominantly for power generation; therefore the entire requirement of coal for the Fertilizer sector has also to be considered under captive power category.

Two scenarios of coal demand for CPP units have been envisaged in Coal Vision 2025 document of MOC on the basis of targeted growth of GDP @ 7% and 8%. Another scenario of coal demand for CPP units has been indicated by the Expert Committee on coal sector reforms. Coal consumption for CPP units is poised to register an annualized growth of about 7.3 % during XI Plan (from 28.13Mt in 2006-07 to 40.00 Mt, as projected in the Annual Plan document in 2011-12).

Year-wise requirement of coal for CPP units based on the same growth rate of XI Plan, Committee on coal sector reforms is given in the table below:

and the requirement indicated in Coal Vision Document 2025 as well as in Expert

Figs. in Mt Scenario Coal Vision 2025 @ 9% GDP 12-13 13-14 14-15 15-16 16-17

(Extrapolated on the basis of the taking 0.7 as energy elasticity

demand projected on 8%GDP Growth Coal Vision document 2025 at 8% GDP Growth rate of 7.2 achieved in XI Plan

51.71

55.47

59.51

63.82

68.47

47.55 42.84

51.01 45.88

54.72 49.14

58.69 52.63

62.96 56.36

While projection of Coal Vision Document modified at 9%GDP growth envisages a growth

of 11.3% in coal demand during the XII Plan period over the demand projected at the Annual Plan document for 2011-12, the projection at 8% GDP growth envisages growth in demand of coal vis--vis indigenous coal availability, all future capacity addition in CPP sector will essentially have to depend on imported coal. This may not be an attractive proposition for CPP units. requirement to the extent of 9.5%. In the scenario of emerging gap between overall

Moreover, the capacity addition envisaged in Power (Utility) sector being higher than the

projected power demand it is likely, that industry would be getting reliable supply of

30

power in a more competitive price than the power generated by the CPPs using imported the current rate, which during XI Plan is not expected to be more than 7.2%. Therefore, scenario-3 with coal requirement of 56.36 Mt is likely to be most realistic demand. 2.2.5 Sponge Iron

coal exclusively. In view of this, it is unlikely that CPPs would be growing in higher than

Supply in raw coal terms for sponge iron sector in the country, rose from a level of 4.40 Mt in 2001-02 to 17.47 Mt in 2006-07 and further planned to be 30.47 Mt in terminal year of XI Plan (Annual Plan: 2011-12). Further, quite a number of sponge iron plants their captive mining blocks.

like Jindal Sponge Iron, Monnet Ispat, Prakash Industries etc. are also sourcing coal from

Ministry of Steel has indicated year-wise non-coking coal requirement of sponge iron units as under: Figs. in Mt 11-12 Non-Coking Coal for Sponge Iron Sector* 39.1 12-13 49.6 13-14 51.5 14-15 57.1 15-16 63.0 16-17 67.5

Three demand scenarios for steel sectors are available as under: Figures in Mt Scenarios 09-10 (Act.) 56.4 11-12 (antc.) 64.46 16-17 (Proj.) Incremental Demand XII Plan 25.74 2021-22 (Proj.) Incremental demand XII Plan 35.52

National Steel SAIL Optimal steel demand 2005

Policy

90.20

125.72

56.4 56.4

64.92 67.35

92.30 104.97

27.38 37.62

131.23 163.61

38.93 58.64

It is mentioned in National Steel Policy (NSP) that out of incremental capacity addition for steel making 33% would be through sponge-iron route. Assuming that 33% of the incremental demand of steel production of the Country will be coming through sponge would be as under:

iron route, as envisage by NSP, the coal requirement scenario for sponge iron sector

31

Figs. in Mt Scenarios Demand 11-12 (2) National 2005 SAIL Optimal steel demand Scenarios Projected 2016-17 (2) National Steel SAIL Optimal steel demand * The extant normative coal requirement of 1.6 Tonne of coal for production of 1 Tonne of Sponge Iron applied for arriving at incremental coal requirement 2005 Policy 44.05 Incremental Incremental demand 33% of (3) (4) 11.72 *Incremental Coal requirement (5) 18.75 in Coal Steel Policy 30.47 Antic. Incremental Demand (3) 25.74 of Incremental Sp. iron (4) 8.49 33% of (3) demand *Incremental Coal requirement in XII Plan 1.6x (4) (5) 13.58 Coal requirement in 2016-17 (6)=(2)+(5) 44.05

steel in XII Plan

30.47 30.47

27.38 37.62

9.04 12.41

14.46 19.86

44.93 50.33

requirement

Demand of steel in XIII Plan (3) 35.52

sponge iron

requirement in 2021-22 (6)=(2)+(5) 62.80

XIII Plan 1.6x (4)

44.93 50.33

38.93 58.64

12.85 19.35

20.56 30.96

65.49 81.29

In Point 2.2.4 above, the rationale for benchmarking optimal demand of steel projection for assessment coking coal demand has been explained. Since the assessment of coal demand for sponge iron plants have also been essentially derived out of steel demand, therefore the same logic holds good here as well. Moreover, on the basis of this projection, the demand in the TY of XII Plan works out to 50.33 Mt with an annualized the most realistic demand. growth of 10.6% against 11.7% achieved during XI Plan. Hence, 50.33 Mt appears to be

of integrated steel plants and as sponge iron units are essentially to cater to niche market, it is expected that the current growth rate will be maintained consistently in XII 10.6% during the plan period as under:

Since, the gestation period for setting up new sponge iron units is much shorter than that

Plan also. Therefore, the year-wise requirement is projected with uniform growth of

32

Figs. in Mt Year Requirement 2.2.6 Others 2012-13 33.69 2013-14 37.24 2014-15 41.18 2015-16 45.52 2016-17 50.33

present. These groups of consumers account for less than 10% of total coal demand and are placed under other industries category.

There are large numbers of units consuming comparatively small quantity of coal at The industries whose demand is

aggregated under this category are mainly brick, aluminium, paper, textiles, glass & refractory, tiny and SSI units. An indicative figure is generally attributed to this group of industries / sector in the total demand scenario. The demand of various non-core

industrial sectors is placed in this group. In this group, brick industry is a major coal State Governments nominated agencies to consumers having requirement of less than of India, is also included in this category. It is very difficult to assess demand of this

consumer. 8Mt of coal from CIL sources that has been kept apart for distribution through 4200 tonnes per annum, as per provisions of New Coal Distribution Policy of Government sector due to non-availability of detail information. Therefore, demand assessment of this category of consumers could be made only on the basis of trend analysis of XI Plan period, and requirement projected in Coal Vision 2025 document.

The Annual Plan document has projected dispatch of 90Mt of coal to others category of consumers in 2011-12, which had been 55.51 Mt in 2006-07. These figures included projection of e-auction of 10% of production of CIL & SCCL for 2011-12 and dispatch through e-auction/e-booking in 2006-07. It is known that a substantial portion of the quantity offered through e-auction is also being consumed by Power, Cement, CPP and Sponge Iron sectors, whose requirements have already been dealt separately. It is also a after promulgation of NCDP on 18 October, 2007. Therefore, taking the despatch demand for 2016-17 is likely to lead to erroneous result. fact that quantities offered in e-auction has substantially increased from November, 2007 projection of the Annual Plan for 2011-12 for Others sector as such to assess the

Coal Vision 2025 document envisaged a demand of 82.11 Mt in 2016-17 with an

incremental requirement of 17.6 Mt at 8% GDP growth for Brick & Other Consumers. Coal consumers during XII Plan period. If the projection is modified at 9% GDP growth rate Vision had included the demand of sponge iron in others category.

Vision document envisaged 5% growth in coal demand from the undefined category of taking 0.7 as the energy elasticity, the demand is enhanced to 89.2 Mt. However, Coal

Therefore for an objective assessment, the projected dispatch to sponge iron sector in 2011-12 (30.47Mt) and the assessed demand for 2016-17 (50.33Mt) has to be taken out for sponge iron, annualized growth in requirement for XII Plan works out to 4.7%. for necessary corrections. In the demand projection at 9% GDP, after necessary correction

33

In the Working Group for Coal & Lignite document for XI Plan the demand for others was

projected at 61.68 Mt in 2011-12. In the Mid-term Appraisal of Planning Commission for XI Plan the demand for others category including sponge iron and CPP sectors for 201112 was projected at 147.60Mt. If the demands projection of Working Group for Sponge Iron (28.96Mt) and CPP (57.06) sectors were taken out, requirement of others works out to 61.56 Mt, almost at the same level of projection of the Working Group. In view of the above, the year-wise likely demand scenarios for other category in different scenarios can be projected as under: Scenario Considering that 50% of the e-auction quantity being consumed by this category and taking the despatch base line with the growth rate 68.16 71.36 74.72 78.23 81.90 Figs. In Mt 12-13 13-14 14-15 15-16 16-17

projection 2011-12 Annual Plan as envisaged by Coal Vision Document Considering demand projection of MTA for 2011-12 as base line and extrapolating the same growth rate till 2016-17

envisaged by Coal Vision Document Demand projection of Coal Vision growth

64.44

67.45

70.60

73.90

77.22

Document at 9% GDP with 4.7% annual

35.63

37.29

39.04

40.86

42.77

*Coal Vision Document 2025 included Sponge Iron sector as part of others sector. Now, since Sponge Iron is separated out, demand for others category is reduced to that extent.

Coal Vision Document included sponge iron, which itself is a major consuming sector now, in others category and therefore, this projection is now somewhat out of date. The Annual Plan document included e-auction in others category and therefore, leading to

erroneous result. In view of these, the projection on the basis of the demand assessed by of XII Plan works out to 77.22 Mt. In absence of any input in respect of year-wise uniform growth rate throughout the Plan period. 2.3 Summary of coal demand for XII Plan

MTA for the year 2011-12 appears to be most likely situation, wherein demand for the TY generation and or capacity augmentation programme, the requirement is projected with

CEA has given a projection of capacity addition of 79010 MW during XII Plan period, as against envisaged capacity addition of 41150 MW during XI Plan. However, till Aug11, actual addition of capacity had been only 29740 MW. Requirement of coal was given on a higher specific coal consumption rate than the present trend. as had been in the TY of X Plan, Even if the projected is likely to

capacity addition materializes, with the level of specific coal consumption of 0.70 Kg/Unit which

34

improve to a great extent by use of imported coal, requirement would be reduced by about than 32 Mt than what is projected.

The likely production of clinkers in 2016-17, as estimated on the basis of the information 2011-12, with a growth rate of 12%. Moreover, coal requirement for per tonne cement production has been projected in excess to current level.

given by CMA/DIPP, would be 394.21million tonnes, as against 223.41 million tonnes in

Ministry of Steel has indicated coking coal requirement as well as non-coking coal requirement for sponge iron. However, in both cases the demands are not based on the demand of steel projected by different expert agencies in steel industry, including the projection made by National Steel Policy.

Power (Utility), Steel (including sponge iron) and cement sectors so far indicated their coal the country.

requirement. These sectors account for more than 85 % of the total raw coal demand of

emerging out:

From the analysis as given in Points 2.2.1 to 2.2.6 above, two demand scenarios are

essentially

Scenario-I (on the basis of inputs received from the users agencies) has been developed on the basis of the likely generation/production projections

corresponding coal requirement as indicated by users Ministry/Apex Agencies. Wherever products of the users industries along with coal consumption norms projected by various Expert Groups have been taken into consideration. In case of CPP, the Coal Vision document at 9% GDP was considered. For others category of consumers, the growth rate that 50% of the e-auction quantity is consumed by Power, Steel , Cement, sponge Iron, CPP sectors.

and

such inputs were not available, the highest of the demand projections for the finished

envisaged on Coal Vision Document applied on the supply plan of 2011-12, assuming

Scenario-II (Assessed by the Working Group): On the basis of the assessment of the

concerned Ministry/Expert Groups in the relevant fields, the realistic demands and corresponding likely production figures of the end-products of the coal consuming sectors have been assessed. The requirement/demand of coal has subsequently been industry to produce each unit of the finished product. estimated on the basis of the current trend of specific coal consumption by the respective

The overall coal demand for the terminal year of XII Five Year Plan is accordingly summarized as under:

35

Sector

X Plan

(2006-07) Actual demand

XI Plan

(2011-12) Annual Plan demand 46.67 460.00 40.00 28.89 30.47 90.00 649.36 696.03 projection

XII Plan (2016-17) demand projection

Scenario-I 77.10 842.00 68.47 67.01 67.50 81.80 1126.78 1203.88

Scenario-II 67.20 682.08 56.36 47.31 50.33 77.22 913.30 980.50

Coking Coal Non-Coking Coal Power Utility Power Captive Cement Sponge Iron Others* Total non-coking Grand Total

35.17 307.92 28.13 19.67 17.47 55.51 428.70 463.87

* Figures in respect of Others in 2006-07 and 2011-12 include e-auction, open to all

quantity is 49.80 Mt (production of CIL & SCCL together being anticipated at 498Mt) in 2011-12. 50% of this e-auction quantity i.e. 24.90 Mt is assumed to be consumed by

consuming sectors including Power, CPP, Sponge Iron etc. The total likely e-auction

consumers in Power, Cement, CPP and sponge sector. Therefore, only the remaining quantity of 24.90Mt could be taken as the demand of Others category. Thus, the actual demand of Others category may be considered as 65.1Mt in 2011-12. The demand projected for 2016-17 accordingly envisages an annualized growth of 3.5%.

The demand for the terminal year of XII Plan, thus assessed by the Working Group, envisages an annualized growth of more than 8% over the actual demand of 2010-11. In comparison to the demand projected in the Annual Plan of 2011-12, the annualized

growth works out to more than 7%. Sector-wise trend of demand and growth projection for 2016-17 is given in the table below: (in Million Tonnes) Demand of 2011-12 Annual Plan 46.67 460.00 40.00 28.89 30.47 CAGR (%) (over Supply of 201011) CAGR (%) (over Demand of 2011-12)

Sector

2010-11 (Actual)

2016-17 (Projection)

Coking Coal Power (Utility) Power (CPP ) Cement Sponge Iron

45.83 383.98 28.99 27.58 18.76

67.20 682.08 56.36 47.31 50.33

6.6% 10.0% 11.7% 9.4% 17.9%

7.6% 8.2% 7.1% 10.4% 10.6%

36

(in Million Tonnes) Demand of 2011-12 Annual Plan 90.00 649.36 696.03 CAGR (%) CAGR (%)

Sector

2010-11 (Actual)

2016-17

(Projection)

(over Supply of 201011)

(over Demand of 2011-12)

Others* Total NonCoking Total

110.99 570.30 616.13

77.22 913.30 980.50 8.2% 8.1% 7.1% 7.1%

* The demand shown for Others in 2010-11 & 2011-12 includes e-auction quantity. The actual demand for Others category for 2011-12 considered as 65.1Mt. 2.4 Demand Projection for XIII Plan Based on the realistic demand projection for Terminal Year of XII Plan, likely demand for Terminal Year of XIII Plan has been worked out as under: T.Y.XI Plan Sector (Demand as per Annual Plan) Coking Steel Power Utility Cement CPP Sponge Iron Others* Total Non-Coking Total 46.67 460.00 28.89 40.00 30.47 90.00 649.36 696.03 (2011-12) T.Y. XII Plan (2016-17) Demand) 67.20 682.08 47.31 56.36 50.33 77.22 913.30 980.50 7.1% 7.1% (Realistic

CAGR (%)

T.Y. XIII Plan (2021-22) (Demand 105 938 78 79 81 92 1268 1373

CAGR (%)

Projection)

7.6% 8.2% 10.4% 7.1% 10.6%

9.3% 6.6% 10.4% 7.1% 10.1% 3.5% 6.8% 7.0%

The demand shown for Others in 2011-12 includes e-auction quantity.

Demand for Power Utility sector is based on power demand indicated in 17th EPS for 2021-22 at 1915BU, 70% of which, if comes through coal-based power station, the demand for coal-based power station works out to 1340BU requiring 938Mt of coal; production has been considered.

Similarly demand indicated in National Steel Policy for 2021-22 in respect of steel Demand for other sectors in XIII Plan has been

considered to grow at similar level as in XII Plan. 2.5 Observation:

The gap between demand and indigenous availability of coal has substantially widened

during XI Plan from a level of 51.10Mt in the original plan document to 137.03Mt in the

37

adequate availability of raw material. The requirement worked out on the basis of the

sectors would endeavour to register most optimistic requirement in order to ensure

Annual Plan of 2011-12. In this milieu, it is not unexpected that all manufacturing

inputs received from the major consuming sectors is the boundary limit for the demand.

Notwithstanding the above, assessment of realistic demand is the fundamental activity for subsequent planning in production, infrastructure development and human resources. Moreover, projection of excess coal demand and increasing demand-supply gap may trigger in speculative pricing of coal in international market and therefore, ultimately may act as a self-defeating device. Working Group deliberated to estimate demand scenario are available those would be used as the starting point for assess likely coal requirement.

and decided that wherever the demand of the finished products of the consuming sectors Accordingly, 17th Electric Power Survey report has been used to assess requirement of coal by power sector. Similarly demand of steel, as assessed by industry expert has been used to assess likely coking and non-coking coal demand of steel sector.

38

CHAPTER - 3 COAL PRODUCTION 3.0 Introduction

As per the Original XI Plan document, all India coal production was envisaged to be 680

million tonne (Mt) at 2011-12, TY of the XI plan. The envisaged annualised growth rate in XI Plan was 9.56 % against 5.62% achieved in the X Plan. At the Mid-Term-Appraisal (MTA) of the XI Plan, in Sept.2009, the production projections were revised downwards to Plan 2011-12 of MoC, all India coal production has been again revised to 554 Mt. 630 Mt for the year 2011-12 at an annualised growth rate of 7.89 %. As per the Annual

The company-wise trends of coal production, during the last three plan periods, are as under. Table: Trend of Coal Production (Figures in Mt) TY (01-02) Actual CIL SCCL Other s Total 279.65 30.81 17.33 327.79 IX Plan TY (06-07) Actual 360.91 37.71 32.21 430.83 X Plan TY (11-12) Target 447.00 51.00 56.00 554.00 XI Plan Growth in X Plan Absolute 81.26 6.90 14.88 103.04 CAGR % 5.23 4.12 13.20 5.62 Growth in XI Plan Absolute 86.09 13.29 23.79 123.17 CAGR % 4.37 6.22 11.70 5.16

3.1 Coal Production Performance in XI Plan: 3.1.1 All India: In the first three years of the XI Plan, the growth in all India coal production showed an increasing trend. Against the coal production of 430.83 Mt achieved in 2006-07, achievement in 2007-08, 2008-09 & 2009-10, was 457.08, 492.76 and 532.04 Mt 5.84% (AG) in 06-07 (TY X Plan), to 6.09% in 2007-08, 7.80 % in 2008-09 and 7.97 % in 2009-10. In 2010-11, 533.08 Mt was achieved against 532.04 Mt in 2009-10.

respectively. The annual growth showed an increasing trend till 2009-10. It grew from The

growth was arrested in 2010-11, mainly on account of issues related to delay in Forestry & Environmental clearance (FC & EC), besides land acquisition, R & R and coal evacuation. Coal production target, as per the AP 2011- 12, has been planned for 554 Mt

39

3.1.2 Coal India Ltd (CIL): As per the original XI Plan document, CIL's coal production was envisaged to be 520.50 Mt, at a CAGR of 7.60 %, in the terminal year (TY) of XI plan i.e. 2011-12. This was revised to 486.50 Mt (CAGR - 6.15 %) at the MTA. However, in the Annual Plan 2011-12, CILs coal production target has been further revised to 447 Mt. Coal production in 2007Mt achieved in 2006-07 (TY X Plan). In the first three years of the XI Plan, CILs coal production grew at an increasing trend with the annual growth rate of 5.10% in 2006-07 (TY X Plan), to 5.14 % in 2007-08, to 6.40 % in 2008-09, to 6.82 % in 2009-10. However, 08, 2008-09 & 2009-10, was 379.46, 403.73 and 431.26 Mt respectively against 360.91

in 2010-11, CILs coal production, 431.32 Mt, stagnated at the same level of the previous

year on account of constraints of delays in obtaining forestry and environmental clearances of a large number of new/expansion projects, land acquisition and related R&R issues, and law and order problems. Additional environmental issues, in the form of Environmental Pollution Index (CEPI) compounded the problem in the growing coalfields.

imposition of restrictions on increasing coal production under the Comprehensive Further, lack of evacuation facilities in some growing coalfields viz. North Karanpura, Talcher, IB Valley & Mand Raigarh caused build up of pithead stocks, which resulted in restriction of production in some subsidiaries. In XI Plan, CIL had identified 145 new/expansion projects having a sanctioned capacity of around 390 Mty. So far only 80 projects having ultimate sanctioned capacity of 195.78 Mty has been approved and are in various stages of implementation. Out of these, 37

projects contributed 80.11 Mt in 2010-11. In 2011-12, 42 projects are expected to 195.44 Mty) are in various stages of formulation/approval.

contribute 88.71 Mt. The remaining identified 65 XI Plan projects (estimated capacity of Currently 149 On-going projects are under execution by CIL. Approved EC capacity available at present with CIL is 340.93 Mty. The projected production from these projects in 2011-12 is about 240 Mt. Out of this, only 81 projects have both EC and FC

clearances with an approved EC of 190.48 Mty. The projected production of these projects in 2011-12 is about 125 Mt. For another 32 projects, EC, capacity of 142.67 Mt, of these projects is about 100 Mt in 2011-12. In 14 projects (PR Capacity 16.62 Mty), FC Mty), both EC and FC is pending. 3.1.3 SCCL: As per the original XI Plan document, SCCL was envisaged to produce 40.80 Mt (CAGR

has been approved. However, FC of these projects is pending. The projected production has been obtained but EC is awaited. For the remaining 22 projects (PR capacity 88.12

1.59 %) in 2011-12 (TY of XI plan), against 37.71 Mt in 2006-07 (TY of X Plan). In the annual growth of 2.89 Mt ( 7.7 %) in 2007-08 and 3.95 Mt (9.7 %) in 2008-09 over the

first two years of the XI plan, SCCL has exceeded the envisaged targets and achieved an previous year. At the MTA coal production targets for SCCL in 2011-12 was enhanced to enhanced to 51.00 Mt (CAGR 6.22 %).

47.00 Mt (CAGR 4.50 %). In the Annual Plan 2011-12, SCCLs targets were further

40

During XI plan period, 33 Nos. of projects were identified having PR capacity of 56.67 Mt. Their actual production during 2010-11 and anticipated production during 2011-12 are 36.72 & 36.48 Mt respectively.

Out of 33 Projects identified in the XI plan, 24 Projects have been implemented. Status of remaining projects is as follows: 2 projects were approved but could not be started due to land

diversion/acquisition and Rehabilitation and Resettlement of displaced families. Feasibility Reports of another 2 project are under preparation. 2 projects are going to be implemented during 2011-12. FR approved for 2 projects and it is in initial stage of implementation. 1 project is proposed for dropping.

Out of 56.67 Mt of capacity planed to contribute during XI plan period, 36.72 Mt capacity not be started due to -

was established by the end of 2010-11 & remaining projects of capacity 19.96 Mt could - Problems related to land diversion/acquisition and R&R of displaced families. - FR under preparation. 3.1.4 Captive Blocks: coal blocks was envisaged at 104.08 Mt (with a plan period growth of 86.46 Mt at a CAGR of 42.66 %). However, as per information received from the Coal Controllers Organisation (CCO), it is anticipated that at the end of the XI Plan, 2011-12, only 36.15 Mt is likely to come from captive blocks. The anticipated growth at the TY of XI Plan is likely to be 18.53 production. However, a declining trend is seen from 2009-10, growth in absolute terms Mt (CAGR - 15.46 %). In the first two years there was a gradual increase in coal reduced to 5.46 Mt in 09-10 compared to 8.75 Mt in 2008-09 over 2007-08. This is on negative growth (0.82 Mt) is seen. producing blocks is given below. As per the original XI Plan document, at the TY of XI Plan coal production from captive

account of constraints of FC&EC issues, land acquisition, etc. In 2010-11 a marginal

The year-wise coal production from captive blocks in the XI Plan and the number of

41

Table: Trend of Coal Production from Captive Blocks in XI Plan blocks Captive TY X Plan XI Plan

06-07

07-08

08-09

09-10

10-11

11-12 Target Ant 34 36.15 104.08 80.89 Original MTA

Actual Blocks Production (Mt) No. of 11 17.61 15 21.25 25 30.00 26 35.46 28 34.60

38 38.25

Absolute Growth (Mt) Annual Plan period CAGR % 4.02 13.15 31.61 3.64 8.75 5.46 -0.86 3.65 20.64 16.78 1.55 18.53 15.46 69.48 86.46 42.66 46.29 63.27 35.65

Till 2010-11, production commenced in 28 blocks & produced 34.64 Mt. At the end of expected to be 36.15 Mt. Out of the total 34 blocks, 16 blocks of power utilities are expected to yield 26.30 Mt of coal, 12 sponge iron blocks will be producing 8.88 Mt and remaining production shall come from the 6 blocks of steel, cement, pig iron, etc. 3.1.5 Others: Six PSE companies (JKML, JSMDCL, DVC, IISCO), Tata Steel and Meghalaya have been clubbed under the head Others. In the original XI Plan document, at the TY of XI Plan coal production from other sources is envisaged at 14.62 Mt. Actual yearly coal 14.47 Mt to 15.83 Mt. The anticipated production for year 2011-12 is 17.75 Mt at an annualised growth of 12.41% and CAGR 3.98%. table below. the XI Plan, it is anticipated that 34 blocks will be in operation and the likely production is

production from this group in the XI Plan till 2010-11 is found to be ranging between

Year-wise achievement of all India coal production in the XI Plan Period is furnished in the

42

Table: All India Coal Production Performance in XI plan (Figures in Mt) X Plan Source 06-07 Actual CIL SCCL Captive Others * All India AG % CAGR % 5.62 360.91 37.71 17.61 14.60 430.83 07-08 Actual 379.46 40.60 21.25 15.77 457.08 6.09 08-09 Actual 403.73 44.55 30.01 14.47 492.76 7.80 09-10 Actual 431.26 50.43 35.46 14.89 532.04 7.97 10-11 Actual 431.32 51.33 34.6 15.83 533.08 0.20 Target 447.00 51.00 38.25 17.75 554.00 4.12 5.16 9.56 7.89 AP 2011-12 Original 520.50 40.80 104.08 14.62 680.00 MTA 486.50 47.00 80.89 15.52 629.91 TY XI Plan

* JKML, JSMDCL, DVC, IISCO, Tata Steel and Meghalaya 3.2 XII Plan Projections.

3.2.1 Coal India Ltd Two scenarios of coal production programmes, viz. Business as Usual (Scenario-I) and Optimistic Scenario (Scenario-II) has been drawn up. 3.2.1.1 Business as Usual Scenario (SCN-I): Under Scenario-I, CIL is envisaged to produce 556.40 Mt at the terminal year of the XII Plan, (2016-17) with a plan period growth of 109.40 Mt & a CAGR of 4.48%. This FC, land acquisition and R&R issues, law & order problem and the development of coal evacuation facilities.

projection has been drawn up considering the current trends of delays in obtaining EC &

43

Coal Production Programme CIL (SCN I - Business as Usual) (In Mt) TY XI Plan Company 11-12 33.00 30.00 51.00 68.50 45.50 112.00 106.00 1.00 447.00 15.68 86.09 4.37 12-13 34.00 31.00 55.00 69.00 45.00 117.00 112.00 1.10 464.10 17.10 13-14 35.00 32.50 62.00 71.00 45.00 119.00 120.00 1.15 485.65 21.55 XII Plan Projection 14-15 36.00 33.50 70.00 74.00 45.00 123.00 125.00 1.25 507.75 22.10 15-16 38.00 35.00 76.00 77.00 45.00 126.00 132.00 1.30 530.30 22.55 16-17 41.00 36.00 83.00 80.00 45.00 130.00 140.00 1.40 556.40 26.10 109.40 4.48

Tar/BE ECL BCCL CCL NCL WCL SECL MCL NEC Total AG (Mt) Plan Period CAGR (%) Growth (Mt)

3.2.1.2 Group wise break-up Group-wise break-up of production programme of CIL for the XII Plan under SCN-I is given below: Group-wise coal production programme of CIL (SCN-I) (Figures in Mt) Group XI Plan TY (RE) 11-12 Existing +Completed Ongoing Projects Future Projects TOTAL 218.37 227.63 1.00 447.00 12 - 13 227.39 233.76 2.95 464.10 13 - 14 222.56 254.31 8.78 485.65
14 - 15

XII Plan (Projection)

15 - 16 197.26 288.26 44.78 530.30

16 - 17 192.42 300.18 63.80 556.40

202.35 272.69 32.71 507.75

44

In the XII Plan period production from Existing mines and Completed projects of CIL is expected to decline by 25.95 Mt from 218.37 Mt in 2011-12 to 192.42 Mt in 2016-17. Mt in 2011-12 to 300.18 in 2016-17. So far tentatively as many as 70 new/expansion Production from Ongoing Projects is envisaged to increase by 72.55 Mt i.e. from 227.63 projects identified to be taken up besides about 50 XI plan spill over projects during XII plan. It is expected that about 63.80 Mt will come from New/Future projects in the TY of XII plan. 3.2.2 SCCL SCCL has planned for an incremental production of 6 Mt by the end of XII Plan in comparison to the end of XI Plan (51.00MT - anticipated) (CAGR 2.25%) Year-wise production projections of SCCL during XII Plan period are given below: Table: Coal Production Programme of SCCL (SCN-I) (Fig in Mt) TY of XI Plan XII Plan

Year Production proposed

2011-12 51.00

2012-13 53.10

2013-14 54.30

2014-15 55.00

2015-16 56.00

2016-17 57.00

Table : Group-wise coal production programme of SCCL (in Mt) Group TY of XI Plan Target 11-12 Existing + Completed Ongoing Projects Future Projects TOTAL 51.00 53.10 54.30 41.04 9.96 12 - 13 33.32 19.78 13 - 14 31.78 22.52 14 - 15 31.53 23.32 0.15 55.00 15 - 16 30.90 24.56 0.54 56.00 16 - 17 30.91 25.15 0.94 57.00 XII Plan Projection

In the XII Plan period production from Existing and Completed projects of SCCL is expected to decline from 41.04 Mt in 2011-12 to 30.91 Mt in 2016-17 due to depletion of reserves. Production from Ongoing Projects is programmed to increase from 9.96 Mt in expected to come from new/future projects in the TY of XII plan. 2011-12, TY of XI Plan to 25.15 Mt in 2016-17 i.e. by 15.19 Mt. Another 0.94 Mt is

During XII plan, SCCL has envisaged 9 new projects. Increase in production will come mainly from 22 On-going projects and identified XII plan projects.

45

(EC) for one project has been obtained. EC is yet to be obtained for the remaining FC application has to be generated. 3.2.3 Captive Blocks

Out of the 9 new projects envisaged to be taken up in XII plan, Environmental Clearance

projects. Forestry Clearance for JVR OC-II is in the initial stages. For all other new projects

from 36.15 Mt in 2011-12 to 79.60 Mt in 2016-17, i.e. an absolute growth of 43.45 Mt at a CAGR of 17.10%. So far 194 blocks have been allotted for captive mining purpose. As per mine plan

In the XII Plan period it is envisaged that production from Captive Blocks will increase

submitted by captive block owners to CCO it is envisaged that at the end of the XII Plan, as many as 111 blocks will be operative and will produce 79.60 Mt. Out of these111 blocks, which fall in to GO Area, it is envisaged that about 42 blocks will cater power provide to Steel, Cement, Pig Iron etc.

utilities. Sponge Iron will be provided coal from 42 blocks and remaining 27 blocks will The details of coal production programme in the XII Plan period from Captive Blocks as made available by the Coal Controllers Organisation under Scenario I is given below. Table: Coal production programme from captive blocks (SCN-I) (TY XI Plan) Captive Blocks 11-12 Ant No. of Blocks (Tentative) Production (Mt) Plan Period Growth (Mt) CAGR (%) 3.2.4 All India In the business as usual scenario, it is envisaged that coal production would grow from 551.90 Mt in 2011-12 to 715.00 Mt in 2016-17. Incremental production envisaged is 163.10 Mt at a CAGR of 5.31 % as shown below. 34 36.15 18.53 15.46 12-13 39 39.80 13-14 50 46.80 XII Plan Proj 14-15 70 53.25 15-16 80 66.20 16-17 >100 79.60 43.45 17.10

46

Table: Coal Production Programme - All India (SCN I) (Figures in Mt) XI Plan
11-12

TY of

TY of XI Plan
11-12 12 - 13 13 - 14

XII Plan

14 - 15

15 - 16

16 - 17

Company CIL SCCL Captive Mining Others Total - All India Plan Period Growth (Mt) CAGR %

Target 447.00 51.00 38.25 17.75 554.00 123.17 5.16

RE/Anticipated 447.00 51.00 36.15 17.75 551.90 121.07 5.08 464.10 53.10 39.80 18.00 575.00 485.65 54.30 46.80 18.25 605.00

Projection 507.75 55.00 53.25 19.00 635.00 530.30 56.00 66.20 20.50 673.00 556.40 57.00 79.60 22.00 715.00 163.10 5.31

Under this business-as-usual scenario, considering the present pace of FC&EC clearances, the difficulties in land acquisition and evacuation problems, it is envisaged that CIL would contribute an incremental production of 109.40 Mt at a CAGR of 4.48% and SCCL would add another 6 Mt, growing at a CAGR of 2.25%. Coal production from CAGR of 17.10%.

captive mining blocks is planned to yield an incremental production of 43.45 Mt at a 3.2.5 Field-wise break-up Significant growth in coal production is expected to come from the following coalfields: Table: Projected growth from Captive Blocks & Major Coalfields (SCN I) (Figures in Mt) Coalfield Likely Growth in XI Plan Abs (Mt) Captive blocks Talcher North Karanpura IB Valley Singrauli CIC West Bokaro 18.99 16.71 3.42 9.29 16.34 0.69 1.15 Projected growth in XII Plan (SCN I) Abs (Mt) 43.45 21.50 18.11 12.50 11.50 8.37 5.79 CAGR % 17.10 5.70 11.67 5.76 3.15 6.16 13.65

47

Coalfield

Likely Growth in XI Plan Abs (Mt)

Projected growth in XII Plan (SCN I) Abs (Mt) 5.28 126.50 77.55 CAGR % 14.27 12.65

Mand Raigarh TOTAL % of Total Growth

3.14 69.73 56.61

It is envisaged that major growth will come from above seven coalfields and from captive

blocks. In the XII plan the envisaged coal production growth from these seven coalfields & SCCL and Others is given in Annexure 3.1 3.3 Optimistic Scenario (Scenario-II ) : 3.3.1. Coal India Ltd In the XI Plan period, coal production could not be achieved as planned primarily due to restrictions arising out of imposition of CEPI guidelines and non-availability of forestry clearances in time. Land acquisition in a large number of new/expansion projects is held

captive blocks is 126.50 Mt. Subsidiary-wise, field-wise production programme of CIL,

up due to various issues of problems of inconsistent land records, R&R issues, etc. Also, work by the local populace leading to deteriorated law and order situation, mainly in Orissa and Jharkhand States.

coal production had to be restricted in certain growing coalfields for frequent stoppage of

processed in the fast-track route and delivered within the specified schedule and the issues affecting land acquisition, R&R and law and order are addressed appropriately by active involvement of all concerned Central and State Government agencies. In spite of 29 Mt less production compared to AP target in the year 2010-11, about 6 Mt

The production projected in this scenario is achievable only if the requisite clearances are

of coal production was added to coal stock and the overall pit-head coal stock increased from 63.54 Mt to 69.17 Mt. This was primarily due to non-availability of adequate railway wagons in different coalfields. Out of 185 rakes/day originally envisaged off-take lower than target. during

formulation of the Annual Plan only 162 rakes/day could actually be supplied resulting in Further, CILs growth in production in the first four years of the XI Plan was 4.56 %. increase in stock from 32.82 to 69.17 Mt in four years. At present rail despatch is around

Against this growth in production, growth in rail off-take was only 2.61% resulting in 47% of the total off-take and the rest of the off-take is through other modes. Growth in off-take in this period has been maintained through stretching the road despatch. Growth of this level through road will be difficult to sustain in future. In this scenario it is also assumed that rail evacuation problems will be addressed to growing coalfields with adequate availability of wagons.

match with the growth in coal production expediting pending rail projects in the major

48

CIL has worked out a second scenario of coal production projections in the XII Plan, with

the above assumptions, in keeping with the growing energy requirements of the nation.

Under this scenario, CIL, stretching all its resources, has worked out a projection of the above are duly addressed in a time bound manner and enabling conditions are created coal production by CIL under this scenario is given below:

maximum possible coal production during the XII Plan provided the issues mentioned for CIL to both produce and despatch the produced coal. The company-wise break-up of Table: Company wise coal production programme CIL (Scenario II) TY XI Plan 11-12 (BE) ECL BCCL CCL NCL WCL SECL MCL NEC Total CIL AG (Mt) Abs Growth (Mt) in Plan period CAGR (%) 33.00 30.00 51.00 68.50 45.50 112.00 106.00 1.00 447.00 15.68 86.09 4.37 12-13 34.00 31.00 55.00 69.00 45.00 117.00 112.00 1.10 464.10 17.10 XII Plan Projection 13-14 36.00 32.50 63.00 71.00 45.00 119.00 120.00 1.15 487.65 23.55 14-15 39.00 34.00 75.00 76.50 45.00 125.00 135.00 1.25 530.75 43.10 15-16 42.00 36.00 85.00 80.00 45.00 135.00 150.00 1.50 574.50 43.75 16-17 45.00 37.00 92.00 82.00 45.00 145.00 167.00 2.00 615.00 40.50 168.00 6.59

(Figures in Mt)

Company

49

Table: Group-wise coal production programme of CIL (SCN-II) Group TY XI Plan Target Existing + Completed Ongoing Projects Future Projects TOTAL 11-12 12 - 13 227.39 232.18 4.53 464.10

(Figures in Mt)

XII Plan (Projection) 13 - 14 222.56 255.31 9.78 487.65 14 - 15 202.35 286.49 41.91 530.75 15 - 16 197.26 306.86 70.38 574.50 16 - 17 192.42 325.78 96.80 615.00

218.37 227.63 1.00 447.00

In the XII Plan period production from Existing and Completed projects of CIL is expected to decline from 218.37 Mt in 2011-12 to 192.42 Mt in 2016-17. Production from Ongoing Projects is programmed to increase from 227.63 Mt in 2011-12, TY of XI Plan to new/future projects to be taken up during XII plan. 3.3.2 Captive Blocks It is envisaged that at the end of the XII Plan around 133 blocks (as per mine plan submitted by captive block owners to CCO) are likely to be in operation, considering blocks both in GO & NO GO Areas. Out of these 133 blocks it is envisaged that about 56 blocks will supply to power utilities, 47 blocks to Sponge Iron and remaining 30 blocks to Steel, Cement, Pig Iron etc. Assuming that the problem of captive blocks falling in NO GO areas would be addressed expeditiously it is expected that some of the blocks out of 22 blocks of No Go Area may get necessary clearances to be operational. Taking all these into consideration it is envisaged that as many as 115 blocks will be in operation and will contribute 100 Mt with an absolute plan period growth of 63.85 Mt (CAGR 22.57%) The details of coal production programme from Captive Blocks as made available by the Coal Controllers Organisation under Scenario II are given below.

325.78 Mt in 2016-17) i.e. by 98.15 Mt. Another 96.80 Mt is expected to come from

50

Table: Coal production programme from captive blocks (SCN-II) (TY XI Plan) Captive Blocks 11-12 Ant No. of Blocks (Approx) Production (Mt) Plan Period Growth (Mt) CAGR (%) 3.3.3 All India With the above stated assumptions it is envisaged that the total coal production shall grow from 551.90 Mt in 2011-12 to 795.00 Mt at 2016-17 (TY of XIII Plan), resulting in an incremental production of 243.10 Mt at a CAGR of 7.57%. Under this scenario CIL is envisaged to produce 630 Mt (2016-17) at a CAGR of 7.1%. Table: Coal Production Programme - All India (SCN II) (Figures in Mt) Company TE of XI Plan ( 2011-12) (Tar) CIL SCCL Captive Mining Others Total - All India Abs Growth CAGR % 447.00 51.00 38.25 17.75 554.00 123.17 5.16 Antic 447.00 51.00 36.15 17.75 551.90 121.07 5.08
12 - 13 13 - 14 14 - 15 15 - 16 16 - 17

XII Plan Proj 12-13 40 39.80 13-14 52 46.80 14-15 74 53.75 15-16 85 68.50 16-17 115 100 63.85 22.57

34 36.15 18.53 15.46

XII Plan (Projection)

464.10 53.10 39.80 18.00 575.00

487.65 54.30 46.80 18.25 607.00

530.75 55.00 53.75 19.00 658.50

574.50 56.00 68.50 21.00 720.00

615.00 57.00 100.00 23.00 795.00 243.10 7.57

However, the above scenario envisages an ideal situation where FC&EC clearances are

out with the co-operation of the State governments and coal evacuation issues sorted out.

received in the stipulated time frames, land acquisition and R&R issues are smoothened

51

3.4 Under Ground Production:

(Figs in Mt)

Company

TY of X Plan 06-07

TY of XI Plan(T) 2011-12 45.00 1.68 0.76 12.50 0.62 1.02 1.20 0.53 12.36 1.22 1.58 15.00
12-13

XII Plan Projection

13-14 14-15 15-16 16-17

CIL Abs. Growth (PP) CAGR % SCCL Abs. Growth(PP) CAGR % Captive Abs. Growth(PP) CAGR % Others All India Abs.Growth(PP) CAGR %

43.32 -5.90 -2.52 11.88 -1.87 -2.88 0.67

45.00

46.00

47.35

51.00

54.50 9.50 3.92

15.50

15.70

15.70

16.00 3.5 5.06

2.25

3.60

5.30 4.10 34.59

1.83 57.70

6.92 65.62 7.92 2.61

7.37 68.60

9.09 72.20

9.20 74.50

9.61 79.90

8.67 84.50 18.88 5.19

3.4.1 CIL Following initiatives are being taken to enhance coal production from underground mines: Introduction of Mass Production and Long-wall technology at suitable locales. A few

high capacity green-field underground mines have been identified for developing by gain sharing basis.

Mass Production and Long-wall technology with Private Public partnership on riskHigh wall mining technology is also planned in the mines where geo-mining conditions permits. Driving additional shaft and incline/drift for enhancing evacuation capacity. ever feasible. Additional coal winning equipment is being deployed for enhancing capacity where

Further, 18 abandoned mines with estimated reserves of over 1600 Mt of high quality coking coal and thermal coal have been identified for developing under a Joint venture Arrangement with association of global underground mining companies.

52

3.4.2

SCCL

In SCCL, the share of production from UG mines in total production during XI plan (including 12.50MT anticipated for 2011-12) is 25.6 % against the target of 28.6 %. But in growth in be negligible. During the initial four years of XI plan, the coal production in SCCL has increased by around 10.70 Mt but reduced by 1.0 Mt from UG mines. SCCL has planned for an incremental production of 6.00 Mt by the end of XII Plan in comparison to the end of XI Plan (51.00 Mt - anticipated). Out of 6 Mt incremental productions, 3.5 Mt is proposed from UG mines.

UG production was negative (CAGR %) in TY of X plan and in TY of XI plan it is expected to

The phasing out of Conventional mining (Hand section mining) by semihand section units will get reduced to 9 units ( in 3 mines) in comparison to that of continued to make this figure Zero. mechanization will continue in the XII plan also. By the end of XII Plan (2016-17),

41 units ( in 15 mines ) during the terminal year of XI Plan (2011-12). Efforts will be Two high capacity Long Wall projects ALP & KLP (with ultimate capacity of 5.55 Mt period.

which are under construction, are expected to start production during XII Plan During XII FYP, the no. of SDL will peak to 174. Presently 146 SDLs are working in SCCL. 3 More numbers of Continuous Miners are programmed for XII plan.

3.5

XIII Plan Projections (TY 2021-22)

For projections of XIII coal production two scenarios have been worked out, one is business as usual (Scn-1) and another is optimistic (Scn-2). It is envisaged that all India CAGR of 5.85% & 6.16% and that for Coal India ltd will be 650 Mt & 700 Mt with a CAGR of 3.16% and 2.62% respectively. coal production for these two scenarios will be 950 Mt & 1102 Mt respectively with a

53

Table: All India Projections for XIII Plan (In Mt) TY XI Plan Company 2011-12 Antic. CIL SCCL Captive Mining Others All India Absolute Growth CAGR % 435.00 51.00 36.15 17.75 539.90 109.07 4.62 TY XII Plan 2016-17 SCN-I 556.40 57.00 79.60 22.00 715.00 175.10 5.78 SCN-II 615.00 57.00 100.00 23.00 795.00 255.10 8.05 TY XIII Plan 2021-22 SCN-I 650.00 63.00 215.00 22.00 950.00 235.00 5.85 SCN-II 700.00 63.00 315.00 24.00 1102.00 307.00 6.75

Table: Coal India Ltd : Company-wise break-up: (In Mt) TY of XII Plan ( 2021-22) Company ECL BCCL CCL NCL WCL SECL MCL NEC Total Absolute Growth CAGR % SCN-I 45.00 38.00 95.00 85.00 44.50 160.00 180.00 2.50 650.00 93.60 3.16 SCN-II 47.00 38.00 110.00 85.00 44.50 180.00 193.00 2.50 700.00 85.00 2.62

54

3.6 AVAILABILITY OF COKING COAL 3.6.1 Coking Coal Reserves As per the Geological Resources of Indian Coal (as on 1.4.2011), out of the total resources of 285.9 billion tonnes (Bt) proven resources are only 114 Bt. (39.9%). The

remaining resources fall under the indicated (48.1 %) and inferred (12%) categories. Of the proved reserves 89.3 Bt lies within a depth of 300 m and the remaining 24.7 Bt lies at depths between 300 to 1200 m. The total resources of coking coal in the country as on 1.4.2011 stands at 33.47 Bt. Of coking coal.

this, 5.31 Bt is prime coking coal, 26.45 Bt is medium coking coal and 1.71 Bt is semiThe type-wise and category-wise break-up of coking resources is given below: Table : Type-wise & Category-wise Coking Coal Resources of India (As on 1.4.2011) (In Mt) Type of coking coal Prime coking Medium coking Semi-coking Total 4614.35 12572.52 482.16 17669.03 698.71 12001.32 1003.29 13703.32 0.00 1880.23 221.68 2101.91 5313.06 26454.07 1707.01 33474.26 15.8 79 5.2 100 Proved Indicated Inferred Total % Share

As may be seen from the above table, only 15.8% of the total coking coal reserves are of Prime coking coal, the major portion being Medium coking coal (79 %). Prime coking coal resources are restricted to Jharia coalfield only. Medium and semi-coking coal is available coalfields. 3.6.2 Availability of coking coal

in Jharia, Ranigunj, Bokaro, Ramgarh, Karanpura, Pench-Kanhan, Sohagpur and Sonhat

Though the production of total coking coal has increased from 32.1 Mt at the end of the X Plan to 49.53 Mt, the production of metallurgical coking coal has remained stagnant at quality considerations. 3.6.3 17 to 18 Mt. The remaining coking coal was not found suitable for metallurgical use on Performance of XI Plan

metallurgical industries is given below (Source: Provisional Coal Statistics for 2010-11, CCO)

The total production of indigenous coking coal and distribution in metallurgical and non-

55

Table: Production of metallurgical coking coal in XI Plan (In Mt) Non% Metallurgical 53.7 52.4 51.2 39.9 36.0

YEAR TY X Plan 2006-07 2007-08 XI Plan 2008-09 2009-10 2010-11

Total Coking 32.1 34.45 33.81 44.41 49.53

Metallurgical 17.23 18.06 17.3 17.73 17.84

metallurgical 14.87 16.39 16.51 26.68 31.69

As may be seen from the above table, in the XI Plan, production of metallurgical coking coal ranged between 17 and 18 Mt. Production from CIL sources is seen to be reducing in the first three years of the XI Plan production from BCCL remained at the level of 3.5 Mt, from TSL hovered between 7.16 to 7.25 Mt. while that from CCL reduced from 5.76 Mt in 2007-08 to 5.23 Mt in 09-10. Production Table : Year-wise, company-wise metallurgical coking coal production in XI Plan Period (Source : Coal Directory, 07-08, 08-09 & 09-10) (In Mt) COMPANY ECL BCCL CCL WCL SECL CIL Tata Steel (TSL) IISCO ESCL (Pvt) ALL INDIA 07-08 0.02 3.54 5.76 0.68 0.16 10.16 7.19 0.72 18.07 08-09 0.03 3.50 4.92 0.73 0.15 9.30 7.25 0.74 0.01 17.30 09-10 0.02 3.64 5.23 0.55 0.15 9.59 7.16 0.93 0.06 17.73 9.29 17.84 10-11 0.04 4.95 3.02 0.38 0.16 8.55

3.6.4 Projections for coking coal production during XII Plan In the XII Plan period CIL has projected an increase in metallurgical coking coal production, to 15.74 Mt by 2016-17. However, the increase will have to come mainly

56

from BCCL and CCL, from the old coalfields of Jharia, Bokaro and Karanpura, which are beset with problems of surface habitation, areas under fire and waterlogging, along with problems of land acquisition and environmental and forestry clearances. Company 12-13 ECL BCCL CCL WCL SECL CIL TATA STEEL IISCO Others * ALL INDIA *Electro Steel etc. 3.6.5 Programme for enhancing coking coal production BCCL In India Prime coking coal is confined to the Jharia coalfield operated mainly by BCCL. The following measures are being taken for enhancing coking coal production at BCCL: Small patches having coking coal have been identified and operated by deploying Hired HEMM. At Moonidih UG mine, it had been planned to augment production through a new 0.007 5.5 4.8 0.38 0.13 10.82 8.74 0.93 0.80 21.29 13-14 0.007 5.7 7.09 0.40 0.13 13.33 10.43 0.93 2.17 26.86 XII Plan projection 14-15 0.007 6.2 7.31 0.40 0.13 14.05 10.34 0.93 4.29 29.61 15-16 0.007 6.7 7.52 0.43 0.13 14.78 10.37 1.20 4.34 30.69 16-17 0.007 7.4 7.74 0.46 0.13 15.74 9.42 1.20 5.34 31.70 (In Mt)

package could not be finalised. A fresh tender is being floated to work XVI Seam on turnkey basis. Meanwhile, an NIT was floated for working XV Seam of Moonidih (1.5 Mtpa) on a turnkey basis. Work order is likely to be issued shortly. issued shortly. Kapuria Project (2 Mtpa): Tendering is at a final stage and work order will be

PSLW package on risk/gain sharing basis with M/s ZMJ, China. However, this

57

Simlabahal (2 Mtpa), Madhuband (1 Mtpa), Amlabad (0.5 Mtpa), Bhowrah (South) (0.6 Mtpa), Sudamdih Shaft (0.5 Mtpa). CCL During the XII Plan, production of coking coal is expected to increase from the On-going projects, viz. Karo OC, Rajrappa RCE, Tapin OC, Tarmi OC, Parej East UG. The production of coking coal would also increase with commencement of production from Future projects, viz., Chano-Rikba OC, Gose OC, Pichri OC, Ramgarh II West OC. The increase in production from On-going and Future projects would be offset by the The long standing land acquisition problem of Block II OCP has been sorted out

A number of new projects are in the 98pipe-line, e.g. PB Project (1 Mtpa),

and this will enable enhancement of coking coal production.

will release considerable coking coal resources for exploitation.

Implementation of the Jharia Master Plan has commenced. Full implementation

closure of Kalyani OC and Jarangdih OC the due to reserve depletion. These two mines produced 2.98 Mt coking coal in 2010-11. Another mine Selected Dhori Quarry No 3, which produced 1.87 Mt of coking coal in 2010-11, would cease production in 2017-18 and is projected to produce 0.25 Mt in 2016-17 due to reserve depletion.

Production would again pick up in the XII Plan as a result of the coming up of Future by CCL:

projects. The following measures are being taken for enhancing coking coal production The production of coking coal would increase from the following ongoing projects

during the XII plan. MTY)

Rajrappa OC ( 3 MTY); Tapin OC (2.50 MTY); Karo OC ( 3.50 MTY); Topa OC RO ( 1.20 Parej East UG mine, which is an approved project, ( 0.51 MTY) would commence production during the XII plan The production of coking coal would increase as a result of the commencement of production from the following future / new projects: MTY); Chano Rikba OC( 3 MTY)

Pichri Extn. OC ( 2 MTY); Tapin Integrated OC( 2 MTY); Kuju OC (1 MTY); Gose OC ( 2 To further increase coking coal production, establishment of joint venture is being explored for the exploitation of coking coal reserves of Ara and Laiyo mines. Tata Steel

Total coking coal production at Tata Steels mines in India at present is over 7 Mill Tons from 2 locationsopen cast operations at Ghato, West Bokaro which produces medium coking coal and underground operations at Jharia which produce prime coking coal.

58

In addition to expanding capacity at its West Bokaro mines from 6 mill tons to 9 mill tons by 2016, Tata Steel is also planning to open another mine, called Kotre Basantpur-Pachmo with a planned capacity to go upto 8 Mill tons p.a. However, It will first be opened to produce 5 Mill Tons by 2016-17 in Phase-1 and then expanded to 8 Mill Tons in Phase-2.

Tata Steel expects to reach a total production of coking coal of around 15 Mill Tons by end of XII five year plan from its domestic operations of its own/ captive mines.

59

CHAPTER-4 DEMAND VIS-A-VIS AVAILABILITY 4.1 Demand projections for XII Plan are furnished in detail in Chapter-2. Indigenous availability projections are furnished in Chapter-3. After examining different projections the Working Group assessed the total demand of coal in the terminal year of XII Plan assessed at 913.30Mt and 67.20Mt respectively. Against these demands the productions of non-coking and coking coal are projected at 683.30Mt and 31.70Mt respectively in the comprising of 35.50Mt of coking coal and 230.00Mt of non-coking coal. The assessed indigenous availability in the TY of XII Plan period is shown in the table below: Demand Coking Non-Coking Total 4.2 STEEL Demand and indigenous supply source for Steel Sector are mostly concentrated in Eastern Region. Demand supply scenario for steel sector is as under: 67.20 913.30 980.50 Production 31.70 683.30 715.00 (2016-17) at 980.50 Mt, out of which the demand for non-coking and coking coal are

TY of XII Plan. This leaves a gap of 265.50Mt between demand and indigenous availability demand vis-a-vis projected production and the resultant gap between demand and Figs. In Mt (-) 35.50 (-) 230.00 (-) 265.50

Gap(-)/Surplus (+)

2016-17(Mt) Demand Indigenous Availability CIL TATA STEEL OTHERS Total Gap (-)/Surplus(+) 4.3 Power (Utilities): As per the demand projections, Power Utilities would continue to be the most important demand (total non-coking coal demand of 913.30 MT) works out to 74.7%. Demand vis-vis availability position for TY of XII Plan is as under: consuming segment. The share of power sector (682.08 MT) in the total assessed coal 15.74 9.42 6.54 31.70 (-) 35.50 67.20

2016-17(Mt) Demand Availability CIL SCCL 396.71 26.69 682.08

60

Captive Blocks/OTHERS Indigenous availability Gap (-)/Surplus(+) 4.4 Power Captive:

68.78 492.18 (-) 189.90

Total coal requirement of captive power sector has been projected in the terminal year of XII Plan (2016-017) at 56.36 million tonnes. Demand vis--vis availability position for TY of XII Plan is as under:

2016-17(Mt) Demand Indigenous availability CIL SCCL Captive Blocks/OTHERS Indigenous availability Gap (-)/Surplus(+) 4.5 Cement Sector: 43.01 3.44 2.12 48.57 (-) 7.79 56.36

Cement Sector accounts for about 5 % of total coal demand of the country. The coal vis availability position for TY of XII Plan is as under: 2016-17(Mt) Demand Indigenous availability CIL SCCL Captive Blocks/OTHERS Indigenous availability Gap (-)/Surplus(+) 22.70 17.09 0.51 40.30 (-) 7.01 47.31

demand at the end of XII Plan has been estimated at 47.31 million tonne. Demand vis--

4.6 Sponge Iron: Demand vis--vis availability position for TY of XII Plan is as under: 2016-17(Mt) Demand Indigenous availability CIL SCCL Captive Blocks/OTHERS Indigenous availability Gap (-)/Surplus(+) 4.7 Others: Demand vis--vis availability position for TY of XII Plan is as under: 24.34 2.78 9.93 37.05 (-) 13.28 50.33

61

2016-17(Mt) Demand Indigenous availability CIL SCCL Captive Blocks/OTHERS Indigenous availability Gap (-)/Surplus(+) 53.91 7.00 4.30 65.21 (-) 12.01 77.22

4.8 Overall Demand and coal availability position for the TY of XII Plan is as under: Source Coking Steel Demand Availability CIL SCCL Others Indigenous Gap(-) 15.74 0.00 15.96 31.70
35.50

Non-Coking Power (U) 682.08 396.71 26.69 68.78 492.18

189.90

Total Others 77.22 53.90 7.00 4.30 65.20

12.02

Power (C) 56.36 43.01 3.44 2.12 48.57

7.79

Cement 47.31 22.70 17.09 0.51 40.30

7.01

Sp. Iron 50.33 24.34 2.78 9.93 37.05

13.28

Total 913.30 540.66 57.00 85.64 683.30

230.00

67.20

980.50 556.40 57.00 101.60 715.00

265.50

4.9 Observation: a) The gap between demand and indigenous availability of coking coal to the extent b) Similarly the gap between demand and availability for Power (Utility) sector to the extent of 189.90 Mt is to be bridged through import. This includes requirement of about 23Mt of coal by imported coal based power plants. of 35.50Mt is to be met through import

c) Non-coking coal import requirement for other sectors works out to 40.10Mt. d) Total import requirement of the Country in the TY of 2016-17, including those of 230.00Mt of non-coking coal. import-based TPS, would be 265.50Mt, out of which 35.50Mt coking and

4.10 Source-wise projected demand vis--vis availability for terminal year of XII & XIII Plan is given in the table below:

(in Million Tonnes) Demand Indigenous Availability

TY of XII Plan 980.50 SCN-I SCN-II SCN-I

TY of XIII Plan 1373.00 SCN-II

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CIL SCCL Captive Blocks & Others Total Gap 4.11

556.40 57.00 101.60 715.00 265.50

615.00 57.00 123.00 795.00 185.50

650.00 63.00 237.00 950.00 423.00

700.00 63.00 337.00 1100.00 273.00

the TY of XII Plan. Out of this 265.50 Mt, the gaps in coking coal and non-coking coal is

The gap between demand and indigenous availability is projected at 265.50 Mt in

assessed at 35.50 Mt and 230.0 Mt respectively. Institutional efforts at the level of Central & State Government may however, bring additional production of 80Mt at the maximum resulting in reduction of the gap to 185.50Mt. However, such additional production is envisaged for non-coking coal only. Therefore, the gap between demand and availability of only non-coking coal could be reduced to 150.0 Mt.

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CHAPTER-5 COAL MOVEMENT AND INFRASTRUCTURE DEVELOPMENT 5.0 In the XI Plan emphasis was given for building requisite rail infrastructure for

evacuation of coal from major potential coalfields of North Karanpura, MandRaigarh, Ib-Valley fields. Increased availability of rolling stock, improving turn round of rakes and harnessing the potential of alternative modes of transportation identified as the thrust areas for XI Plan. Evacuation capacity building in XI Plan has not been to the level of expectation for various reasons like forestry and

for coal evacuation, particularly use of inland waterways were some of the issues

environmental clearance, land acquisition, lukewarm response from the prospective issues need to be addressed on top priority during XII Plan to avoid accumulation of coal stock at the pitheads.

service providers and users of inland waterway transportation facilities etc. These

5.1 The usual modes for coal movement are rail, rail-cum-sea (coastal movement), road, merry-go-round, belt and ropeways. Since import of coal would be an important port facilities and capacity building for hinterland movement of imported coal from ports to consuming centers would also be of immense importance. 5.2 feature for bridging the demand-supply gap during XII plan, planning for creating

The realistic demand in the TY of XII Plan is estimated at 980.50Mt. The incremental demand during XII plan (696Mt being the demand of terminal year of XI plan) is projected to be 284.50 million tonnes.

5.3

The supply of domestic coal is projected at 715Mt in the TY of XII Plan (2016-17). essentially to be made by importing coal.

It is likely that demand-supply gap will be in the range of 265.50Mt. This gap is should be developed in such a fashion that apart from handling about 750 Mt indigenous coal, it would also be capable to handle at least 200 Mt of imported coal. Therefore, the logistics infrastructure

5.4

The critical issues in respect of movement logistics are: a) c) Railway capacity Port Capacity Capacity for transportation of coal at the railway sidings of mining project and captive mode of transportation

b) d)

In case of pithead consumption centres, synchronization of development

5.5

coal is being drawn for 715 Mt and is annexed at Annexure-5.1

The likely movement matrix for terminal year of XII plan (2016-17) for indigenous

5.6

during 2016-17 would be 389.50 million tonnes for which wagon requirement

It may be seen that requirement of rail movement for raw coal and coal products

64

would be 281 rakes per day at the level of movement of 715Mt, assuming that 1

rake is equal to 3800 tonne. This, of course, includes coastal movement of 19.95 Mt but excludes movement of coal from private washeries to the extent of about 40 rakes/day. The movement of raw coal by rail constitutes about 42% of indigenous production.

The reduction in projected percentage share in movement of raw coal is arising out 39Mt to 150Mt by the end of XII Plan, for which internal movement of raw coal to washeries would be essentially through road or captive mode.

of envisaged augmentation in washing capacity in CIL from the existing level of

However, the movement of washed coal would again depend on Railway system and therefore, it will continue to be the mainstay of coal movement in XII Plan as well. The movement matrix for imported coal for 2016-17 is given in Annexure 5.2. Requirement of rail movement for imported coal works out to 229.68 million

5.7 5.8

tonnes equivalent to 165.6. rakes per day.

5.9

works out to 619.18 million tonnes which is equivalent to 446.4 rakes per day.

The total rail movement requirement in 2016-17 for assessed demand of coal

5.10 The other modes of transport involved for movement of domestic coal are as under:Road: MGR:

Belt/Rope: 28.85 million tonnes (4% of indigenous coal movement)

114.50 million tonnes (16% of indigenous coal production)

267.23 million tonnes (38% of indigenous coal production)

The substantial increase in movement through road is arising out of proposed increase in level of 39Mt in TY of XI Plan to 150Mt in the TY of XII Plan. While the movement of raw move through rail to the consumption points.

movement of raw coal to washeries in CIL, as the capacity is proposed to increase from a coal to washery is proposed to be through road, the processed product would ultimately

5.11 About 12% of indigenous supply, i.e. about 85 Mt, has been projected for

movement from captive mining blocks. Movement plan of these blocks was arrived blocks. Wherever end-use plants are located far away from mining blocks,

at on the basis of the location of end-use plants and the position of the mining movement is considered to be made by rail.

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5.12 Rail Capacity: The exponential growth projected in rail movement would be dependent on speedy execution of pending infrastructure projects by railways both in respect of augmentation of line capacity and capacity addition of rolling stock. Indian Railways envisages handling about 700 million tonnes of coal, both indigenous as well as imported by 2020, roughly accounting for 33% of the total estimated freight traffic. On the basis of the projections given above for 2016-17, Indian Railways may have to relook on their estimates. 5.12.1

originating freight traffic proposed to be handled would be 2165 Mt. In order to achieve the targeted growth, IR has set up following goals for capacity building: Broad category Doubling including DFC Gauge Conversion New Lines Electrification Procurement of Wagons Procurement of Diesel locomotives Procurement of Electric locomotives

As per Railways Vision 2020 document, by 2020, the estimated

Vision 2020 Targets 12,000 Kms. 12,000 Kms. 25,000 kms. 14,000 kms. 289,136 5334 4281

5.12.2

augmentation of coal routes, as indicated by Railway Board, is given in Annexure-5.3. 5.12.3

list of

some

of the

important on-going

Railway

projects for

has also planned for construction of Dedicated Freight Corridor projects. These corridors

Dedicated Freight Corridor: To sustain the kind of growth of envisaged, IR

will be a Multi-Modal High Axle Load Freight Corridors with Computerized Train Control System. Presently, Ministry of Railways has sanctioned two DFC projects. A special formed for execution DFC project. purpose vehicle named Dedicated Freight Corridor Corporation of India Ltd., has been

movement. The eastern DFC will primarily cater to the principal coalfields and will handle below Features Route Description Eastern Corridor Kanpur-Khurja-Ludhiana Dankuni-Gomoh-Sonnagar-Mughalsarai-

DFC projects are aimed at segregation of freight

a major portion of the coal traffic. The salient features of the eastern corridor are as

Route Kilometre No. of lines Signalling

1839 Double (Single Khurja-Ludhiana) Automatic signalling with 2 kms. spacing

66

on double line. Absolute block system on single line. Traction Axle loads Speeds Traffic projections (2021-22) Feeder Routes Total Cost cost escalation, Taxes, Insurance, Land (Rs.4200 Cr.)] [current excluding Electrified (2x25 KV AC) 25 Tonne (sub-structure of bridges fit for 32.5 tonne axle load) 100 kmph 144 million tonnes (160 trains) 3071 Km Rs. 23,605 crore

IDC, Private Investment and Cost of

The Project as indicated by Railway Board is likely to be completed by 2016-17. 5.12.4 Since major incremental indigenous availability of coal would be from

Karanpura, Korba & Ib Valley fields s[ecial efforts need to be given for development of railway siding/ tracks in Ib Valley, Korba and Karanpura fields both in CIL mines and coal blocks given for captive use. Following development projects would be of utmost importance for incremental movement of coal in XII Plan: Karanpura:- Construction of Tori-Shivpur-Hazaribagh (TSH) BG line was taken up

during X plan period. However, the project is continuously getting delayed due to various problems related to land acquisition and law & order. Of late, Ministry of Environment & Forest (MOEF) has denied forestry clearance necessitating realignment of tracks. A

concerted effort from all corners is required to ensure that the project is completed at the earliest so that movement of coal to power stations can start from Karanpura field during XII plan.

Mand-Raigarh Coalfield:- This coalfield is expected to contribute 100MTPA coal. A Korichhaper was already under consideration. However, considering the projected

single line 63KM railway project connecting Bhupdeopur- Kharasia Baroud traffic movement, it is now proposed that the route should have double line.

Korba Coalfield:-

production. In order to augment the existing railway infrastructure, a double line from Baroud Korichhaper to Anuppur via Durgapur-Gevra Road of Korba coalfield will be required for smooth evacuation of coal.

This coalfield is expected to contribute about 125MTPA of coal

Ib Valley:- This coalfield has an ultimate production potential of 192MTPA including 45MTPA mainly from CIL projects. Jharsuguda-Sardega rail line in Gopalpur track covering 52.4KMs line, a few more lines to cater to the requirement of captive block holders has already been identified by CMPDIL. Simultaneously, the up gradation of single line to double line is required to be taken up to ensure requisite movement of coal.

In addition to the on-going Barpali-Dhootra-

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5.13

Port Capacity:

5.13.1 Coastal Shipment: From a level of about 26 million tones in 2010-11, coastal envisaged to increase to a level of about 40 million tonnes in the TY of XII Plan. The entire coastal movement presently is limited to east coast only. This essentially involves three load ports (Haldia, Paradeep & Vizag) and three unload ports

movement of coal through Ports (both loading and unloading taken together) is

transshipment already taking place between Paradeep-Haldia & Vizag-Haldia for

(Chennai, Ennore & Tuticorin) for the present. This projection is excluding the

indigenous non-coking and imported coking & non-coking coal. Considering the capacity constraints in rail movement, coastal shipment of coal to some of the capacity constraints of Indian Railways, the possibility of further expansion of explored during XII plan period. 5.13.2 Imported coal: The gap between demand and indigenous availability is projected to be more than 265 Mt. imported coal, the import requirement may ultimately reduce to some extent. The consumers in power sector in Gujarat is envisaged during XII Plan. In view of the coastal movement of coal from Orissa to the states of Maharashtra needs to be

However, considering the higher calorific value of

Planning Commission in its approach paper for XII Plan has projected likely import

requirement of 200 Mt in the TY of XII Plan. If 1Mt of imported coal is considered would be taking care of the gap of around 300Mt of indigenous coal, more or less matching with the estimate made in Chapter-4 of this report.

equivalent to 1.5 Mt of indigenous coal, the projection of Planning Commission

5.13.3 Coast-wise location of requirement of imported coal: The indicative requirement of imported coal in East & West Coast ports, as given in Annexure 5.2, is assessed to be 173.5 Mt & 92 Mt respectively. This assessment is made on the basis of the location of consumption centres, essentially power stations.

5.13.4 Coal handling capacity of Indian Ports: The Maritime Agenda 2010-2020 indicates that coal handling capacity of the major ports is likely to be 196.59Mt in 2016-17 from a level of 81.65Mt in 2011-12. Port-wise envisaged capacity is as under: Port-wise coal handling capacity for Major Ports Mt) Ports Kolkata/Haldia Paradip Vizag Ennore Chennai Tuticorin East Coast 14.75 76.25 28.75 174.19 14.3% 18.0% 24 11-12 15 22.5 16-17 52.5 32.5 26.44 34 7.2% CAGR 28.5% 7.6%

68

New Mangalore Mormagao Kandla West Coast Total

5.4 0 5.4 81.65

11.4 11 22.4 196.59

16.1%

32.9% 19.2%

The capacities indicated above are dedicated coal capacity. Many of the major ports, viz.

Vizag & Kandla, though do not have dedicated coal berths, have been handling coal in the general cargo berths. Therefore, the effective coal handling capacity would be more than what is projected. As reported in the Maritime Agenda, major ports have consistently been utilizing 90% of the capacity for last three years. Going by the trend, the effective capacity for coal handling at major ports in the TY of XII Plan could be assumed at 177Mt, 157Mt in east & 20Mt in west coast.

Capacities for non major ports have not been indicated in the Maritime Agenda. However, it is projected that coal traffic would grow from a level of 89.34Mt in 2011-12 to 284.80Mt in 2016-17. The major incremental traffic has been projected in the following states:

States having major share of incremental coal traffic from non-major ports (Mt) State Andhra Pradesh Tamilnadu Odhisa East Coast Gujarat Maharashtra West Coast All States 2011-12 34.21 0.80 19.13 54.14 25.00 10.08 35.08 89.34 2016-17 69.18 21.00 75.95 166.13 66.00 50.14 116.14 284.8 CAGR 15.1% 92.2% 31.8% 25.1% 21.4% 37.8% 27.1% 26.1%

If the traffic forecast for the non major ports is considered as capacity, the total coal

handling capacity of Indian Ports works out to 481Mt, with minimum capacities at east & west coast of 340Mt and 138Mt respectively. Even if 80% of the capacities are available the total capacity would be 336.7Mt.

Against these capacities, the projected requirement is 305.5 Mt, i.e., 40Mt coastal movement and 265.5 Mt imported coal. Therefore, port capacity is not likely to be a may come in the way for planned import of coal: constraint for movement of coal. However, three major constraints in port operations

69

a)

Hinterland connectivity:

The hinterland connectivity for coal movement is essentially dependent on Indian Railway

system. Out of the projected 265Mt import only about 36Mt is likely to be consumed in the vicinity of port and remaining 236Mt would be dependent on railway system for reaching the consumption points. Again out of this 236Mt, movement from east coast ports to hinterland in the states of Eastern India, a part of central India including eastern UP and Madhya Pradesh and southern states to the tune of 165Mt, i.e., about 119 rakes/day would be dependent on Indian Railway system. Similarly, movement of about 71Mt coal from west coast ports, i.e., 51 rakes/day, to destinations in Northern and Western India would also be dependent on Railway system. While the major ports of the

Country are more or less linked with the Railway system, albeit with insufficient capacity, most of the non-major ports do not have proper railway connectivity. As reported by the Maritime Agenda, the poor connectivity has been coming in the way of augmenting share of rail movement, which is presently only 24% of the total cargo movement out of which share of major ports is 30% and non major ports is insignificant 8%. Since movement of coal is absolutely dependent on Railway system, unless significant augmentation of railway capacity matching with the projected growth of 19% in major ports and 26% in

non-major ports is achieved the bottleneck in hinterland movement may ultimately affect connectivity, as indicated by Railway Board, is given in Annexure-5.4 b) Draft availability at ports:

capacity utilization. The current status of some of the projects for strengthening port-

have historically been very low and not commensurate with the developments taking place in the world in terms of change of ship sizes, higher parcel sizes, changes in cargo draft that is available throughout the year is 16 Mtrs that too limited to a few newer ports. trends. In some of the Indian ports the available drafts is as low as 7 Mtrs. The maximum

Due to various reasons, the drafts at Indian Ports (both in the channel and at berths)

In the existing major ports, the available draft is hardly sufficient to handle panamex vessels on regular basis. Haldia port is not even capable for handling 30000 ton DWT arrangement has to be considered for handling bigger vessels. vessels. Wherever, maintenance of adequate draft is not possible mid-sea transhipping

With the increasing demand of imported coal, the Country will likely to be compelled to cape size vessels in Indian ports, the option will be limited only to South East Asia. c) Mechanization of ports and available stacking space:

import coal from as far as South America. Unless the capability is developed for handling

The turn round of vessels in a port has a direct impact on the ocean freight and thereby on cost of imported coal. The turn round of vessels largely depends on loading/discharge rate

70

at port. From a level of 2500 tons/day at the lowest, average discharge rate at Indian ports hovers around 12,500 tons/day. Only one of the mechanized ports in private sector in the tons/day. Unless large scale mechanization programme is undertaken for installation of high capacity versatile cranes, conveyor belt system, silos, harbour mobile cranes, grab unloaders and Gantry cranes in ports, delay in unloading could be a major constraint. Country could so far attain internationally comparable discharge rate of around 50,000

The unloading capacity is required to be backed up by sufficient stacking space

with reclaiming and water sprinkling facilities. Going by the current status of expected to increase significantly. The quick transfer of the consignment from the

hinterland movement constraint, the in-transit time of the consignment at ports is wharf to the stacking space and maintenance of the stock would be a prerequisite stacking coal, excepting Gangavaram in East & Mundra in West, as reported by Maritime Agenda report. 5.14 Capacity for transportation of coal at Railway Sidings:

for efficient port activities. Almost all the major ports have space constraint for

Improvement in the availability of a given number of railway rolling stock is directly related to the turn-round time. Therefore, improvement in turn-round time is of vital importance for movement of planned quantity of coal. While yard management, dealt by Indian Railways, the efficiency in terminal management is largely dependent on

maintenance of rolling stock and other issues pertaining to running of the trains are to be coal companies and also to some extent on the consumers at the destinations. Improvement in turn-round of rakes can be ensured through faster loading and identified as the thrust areas for XII Plan: 5.14.1 Transportation of coal to sidings: number of tripping trucks for unloading of rakes. Taking these objectives in view, the following issues need to be

Transportation of coal to sidings involves two major issues (1) mobilization of requisite transportation and (2) availability of requisite

infrastructure, particularly roads for continuous movement of heavy duty trucks. Building

up road infrastructure takes a long gestation period. Therefore, advance planning is of utmost importance for developing matching infrastructure for movement of coal from mines to railheads.

Company-wise envisaged rail dispatch quantity in the TY of XII Plan vis--vis transportation requirement and corresponding number of trips per day is given in the table below, assuming that each transport trip carries 10 tons of coal. Annual Rail

Company ECL

despatch Qty (Mt) 20.63

Transportation required Tons/day 56521 Trips/day 5652

71

Company BCCL CCL NCL WCL SECL MCL NEC CIL SCCL Captive Blocks Total

despatch Qty 29.94 63.74 26.79 25.18 58.79 85.84 1.11 312.02 35.88 41.60 389.50

Annual Rail

Transportation required 82027 174630 73397 68986 161068 235178 3041 854849 98301 113973 1067123 8203 17463 7340 6899 16107 23518 304 854850 9830 11397 106712

It may be seen from the above, that in order to achieve planned level of rail dispatch, coal transportation to the tune of 1.07Mt/day involving 1.07lakhs trips/day from mines to railway sidings has to be ensured.

5.14.2 The enormity of the operations has to be visualized keeping in the perspective the entire transportation of coal in the traditional coalfields has to be made through arising out of socio-political reasons. thickly populated villages, which is exposed to blockage and other disturbances

In view of the above, following are suggested in respect of capacity building for transportation of coal to Railway Sidings:

a) Keeping the environmental impact of transportation by road, thrust should be movement of coal from the mines to the sidings.

given in developing long-distance conveyor system, wherever possible, for

b) Siding rationalization plans need to be adopted taking into account the impact of

insurmountable problems, viz. air pollution, en-route pilferage of coal, seasonal hardship and associated social issues leading to frequent obstruction in movement before embarking on long distance road transportation plan.

c) Coal Companies, for the existing mines, wherever feasible, may also develop plan

for having a few centralized coal handling hubs for catering multiple sidings transportation through villages. Coal handling plants would also help them supply of sized coal.

through conveyor to shortening the transportation distance and or avoiding

d) Existing fair weather roads, in high growth coalfields, particularly where captive coal blocks would also be operative, needs to be identified for converting into all weather express coal corridors in PPP model.

e) A specific plan is required to reduce at least 30% dependence on road transport

for movement of coal to railway sidings. In order to fructify the plan the new

mining projects of XII Plan and the capacity addition programme of in non-coking

72

coal washery may be brought under transportation of coal to through conveyor belt system. 30% reduction of surface transport by road will result in to reduction of by more than 32,000 trips/day. 5.14.3 Sizing of coal: Despatch of sized coal would not only ensure faster unloading of rakes at the destinations, but would also improve the carrying capacity of wagons for better compaction. It is, therefore, proposed that by the end of XII Plan, excepting customized product dispatch like export or defence consignments, all the sidings should be capable of handling both bottom discharge and tippler discharge types of wagons.

5.14.4 Coal handling arrangements at destinations: Delay in unloading and handicap to accept all types of wagons come in the way of

improving turn-round of rakes, particularly at power stations where daily requirement is in terms of multiple rakes. All up-coming power stations as well as of wagons. existing power stations, therefore, should develop facilities for handling all types

5.14.5 Scheduling wagon placement at loading and unloading ends: Optimum utilization of coal transport, loading and unloading capacity will not only

bring down the operational costs of the coal companies and power stations, but also will bring overall improvement in system efficiency thereby improving turn round of the rakes. On line real time scheduling of placement of rakes at sidings and at power stations is required to be introduced in the XII Plan. To start with, a multiple rake loading sidings and the concerned Zonal Railways may be integrated expanded to integrate the entire rail loading system.

few power stations essentially getting supplies from single coal company, a few for on line scheduling of rakes and placement forecast, which may further be

5.15 Synchronization of mining and captive transport projects: In many instances due to mismatch between mining and captive transportation projects, stop gap arrangements are being introduced for supply of coal either from alternative sources in case of delay in mining project or through railway and other system in case of delay in development in captive transport project. In both the cases the equilibrium gets disturbed. Often the socio-political situation prevents the system to come out from the

stop gap arrangement creating a vicious cycle in the entire coal movement operations. A projects during XII Plan for all major pithead power stations.

special cell needs to be created to ensure synchronization of the mining and transport

73

5.15 Inland waterways: In order to ease out pressure from the available railway infrastructure for movement of

coal to hinterland consuming centers, utilization of inland waterways, particularly NW-I for movement of imported coal as well as coal from Ib Valley and Talcher fields to power stations in West Bengal & Bihar from Haldia Port requires to be taken up in right earnest during XII Plan. Similarly, development of NW-5 including the project for connecting NW-

5 and NW-I should be considered as a thrust area of XII plan for coal movement. A task

force involving Ministries of Coal, Surface Transport, Power and Railways with budgetary

support needs to be developed. The task force should decide the targets in respect of requisite navigability of the waterways, arrangement for 24hours navigations, creating coal handling infrastructures at ports and at power stations and availability of requisite by the end of XII Plan. types of rolling stock so to ensure that this alternative mode of transportation is in place

74

CHAPTER 6 LIGNITE 6.1 Importance of Lignite in energy security

Pondicherry, Jammu & Kashmir and Kerala where the coal is almost completely absent. In view of rapidly increasing demand for energy, non availability of coal deposits for

Availability of lignite in India is confined in the States of Tamilnadu, Gujarat, Rajasthan,

exploitation in the states of Tamil Nadu, Gujarat and Rajasthan, problems faced in the transporting coal over a long distance, the scope of using Lignite as an alternative source transportation of coal from far off coal fields and high transportation cost involved in

of energy is immense. It is, therefore, considered advantageous to develop lignite mines in these states and utilize them for generation of power as well as for meeting the energy of other industries such as cement, textiles, chemical etc. 6.2 Lignite resources in the country

The total Geological reserves of lignite in the country stands at 40905.86 MT as on the country as on 1.4.2011 is given below:

1.4.2011 against 38756.16 MT estimated as on 1.4.2007. State wise Lignite resource in Fig in Mt State Tamilnadu Rajasthan Gujarat Pondicherry Kerala Jammu & Kashmir West Bengal Total Proved 3735.23 1166.96 1243.65 0.00 0.00 0.00 0.00 6145.84 Indicated 22900.05 2148.72 318.70 405.61 0.00 20.25 0.93 25794.26 Inferred 6257.64 1519.61 1159.70 11.00 9.65 7.30 0.86 8965.76 Total 32892.92 4835.29 2722.05 416.61 9.65 27.55 1.79 40905.86

There is an increase of about 2149.70 Mt of reserves during the last five years by active and intense exploration taken by several agencies. Similarly the reserve brought under proved category has increased from 4177.18 Mt as on 1.4.2007 to 6145.84 Mt as on 1.4.2011 thus making available more deposits for immediate exploitation. State-wise distributions of Indian lignite shows that major part of the resources are located in Tamilnadu (32892.92 Mt) followed by Rajasthan (4835.29 Mt), Gujarat (2722.05 Mt), Pondicherry (416.61 Mt), J&K (27.55 Mt), Kerala (9.65 Mt) and West Bengal (1.79 Mt).

75

6.3

Development of lignite sector in different Plan Period

Lignite production, increased to 31.129 Mt at the end of X Plan from a level of 2.563 Mt and the projected incremental production up to XIII Plan period are furnished below. Incremental

in III Plan. The incremental Lignite production over the previous Plan period up to XI Plan

Plan Period

Terminal Year

Production in Mt

production over previous Plan period Mt 4.54 4.52 10.28 2.17 6.32 10.51

CAGR %

VI Plan VII Plan VIII Plan IX Plan X Plan XI Plan

1984-85 1989-90 1996-97 2001-02 2006-07 2011-12

7.84 12.36 22.64 24.81 31.13 41.64 (Projected)

15.51 9.53 9.03 1.85 4.64 5.99

6.4

Performance during XI Five Year Plan

6.4.1 Lignite Production: At the end of XI Plan (2011-12), the original XI Plan envisaged a total production of 54.96 Mt (Tamil Nadu -24.23 Mt, Gujarat 22.26 Mt, Rajasthan 8.47 Mt). It is now anticipated that lignite production would be 41.64 Mt (Tamil Nadu 22.85, Gujarat 15.14 Mt,

Rajasthan 3.65 Mt) in 2011-12. The Projected Lignite production for the whole period about 179.85 Mt (including the projected production figure for 2011-12) leaving a

of XI Plan in the country has been 223.99 Mt. Against this, the actual Production would be shortfall of about 44.14 Mt. This shortfall is mainly due to non-starting of several mines under Private & State Sector and due to delay in commissioning of certain mines under the wash out zone encountered in Mine I is the main reason for the shortfall of 3.26 MT the Central Sector. As for as NLC is concerned, thinning of Lignite seam thickness and against the Projected Target of 113.93 in Tamilnadu. Similarly, in Barsingsar Mine under NLC at Rajasthan, though the Mine is ready in all aspects to give full production, it was warranted to limit its production to cope up with the demand of its linked TPS which has certain teething problems. Year-wise & State-wise trend of Lignite production during XI Plan is given in the table below:

76

Year/Plan

Tamilnadu

Gujarat

Rajasthan

Total

Projected target (Mt) Total XI Plan 113.93 83.38 26.68 223.99

Actual Production (Mt) 2007-08 2008-09 2009-10 2010-11 2011-12 (Anticipated) Total XI Plan 21.55 21.21 22.31 22.75 22.85 110.67 11.79 10.06 10.54 13.07 15.14 60.60 0.62 1.12 1.26 1.93 3.65 8.58 33.96 32.39 34.11 37.75 41.64 179.85

Excess / Shortfall (Mt) Total XI Plan 6.4.2 Lignite demand Against the projected installed capacity of 5819 MW at the end of XI Plan, the capacity available at the end of XI Plan is only 5211 MW. Lignite based capacity addition in power sector as per XI Plan document has been 2225 MW (TN 500 MW, Gujarat 825 MW, Rajasthan 900 MW). Against this, the actual addition would be 1617 MW (TN 500 MW, Gujarat 337 MW, Rajasthan 780 MW).The shortfall in projected capacity addition is 608 MW (TN 0 MW, Gujarat 488 MW, Rajasthan 120 MW). The lignite demand as projected at the end of XI Five year Plan (2011-12) period is 55.926 MT (Power Sector 42.456 MT and Other sectors 13.470 MT) against which the actual demand has been only 49.35 lignite based power stations in Gujarat & Rajasthan. 6.5 Lignite Demand Perspective for XII & XIII Plans: 6.5.1 Lignite demand for power sector: Demand of lignite mainly comes from power sector. A small demand is also there from Cement, Textiles, Chemical, Paper and other industries. After reviewing the performance lignite based power generation capacity in the country, it has critically examined the of lignite sector during the XI plan and considering the need to increase the share of possibility of adding additional power generation capacity, increasing the Lignite productivity and increasing the Lignite production by developing new mines in the states of Tamilnadu, Gujarat & Rajasthan under Central, State and Private sectors during the XII MT. The shortfall in demand is mainly from power sector due to non-starting of the (-) 3.26 (-) 22.78 (-) 18.10 (-) 44.14

77

plan & XIII plan. The installed capacity of the Lignite based power stations has been

projected as 7491 MW at the end of XII plan and 11091 MW at the end of XIII plan against based power generation capacity during the XII plan and at the terminal year of XIII Plan is given in Annexure 6.1. Available capacity at the end of XI plan is 5211 MW. Projected anticipated capacity addition during XII & XIII Plans are as under: Capacity addition during XII Plan is 2280 MW and XIII Plan is 3600 MW. The state-wise

the installed capacity of 5211 MW at the end of XI Plan. The state wise projected lignite

Installed Lignite based power capacity in MW At the end of XI Plan 3240 * 1066 905 5211 Projected Plan 400 # 500 1380 2280 At the end Projected Plan 2600 ** 1000 -3600 At the end

State

Addition XII

of XII Plan 3640 1566 2280 7491

Addition XIII

of XIII Plan 6240 2566 2280 11091

Tamil Nadu Gujarat Rajasthan Total end.

* On the assumption that the TPS II Expansion will be synchronized during XI Plan

response in favour of NLC is received from MOP for exemption of lignite projects from tariff based competitive bidding route.

** The following Projects will be implemented during XIII Plan if a positive

a. 1600 MW Thermal Power Plant with 13.5 MTPA capacity lignite Mine at Jayamkondam. b. 1000 MW TPS-III at Neyveli and linked 8.0 MTPA Mine-III at Neyveli. TPS I of capacity # New Neyveli TPS of capacity 1000 MW will be commissioned and the existing 600 MW will be closed during XII Plan leaving a capacity

addition of 400 MW.

6.5.2 Sector-wise Lignite demand: from other sectors, it has projected the total lignite demand at 300.30 MT for XII plan. 108.62 MT respectively. given in Annexure 6.2 6.6 Sector wise, state-wise projected Lignite demand details are With the above projected installed capacity and anticipated increased demand for lignite

The demand projected at the terminal year of XII Plan and XIII plan are 71.96 MT and

Projected Lignite Production for XII and XIII Plan

Having estimated the Lignite demand and also the possible resources, it has been estimated that the total Lignite production at 290.16 MT for the entire XII plan and the availability at the terminal years of XII plan and XIII plan are projected at 68.60 MT and

78

104.55 MT respectively.

production plan for XII Plan period and for the TY of XIII Plan are given in Annexure 6.3 State-wise projected lignite production during XII Plan and at terminal year of XIII Plan

Details in respect of State-wise, mine-wise, year-wise

(Figs. in Mt) XIII PLAN

XII PLAN State Tamil Nadu Gujarat Rajasthan Total 6.7 201213 24.23 16.24 8.89 49.36 2013-14 24.23 17.48 9.89 51.60 2014-15 24.23 18.53 15.09 57.85 2015-16 25.08 20.00 17.67 62.75 2016-17 27.20 21.60 19.80 68.60 Total XII Plan 124.97 93.85 71.34 290.16

2021-22 45.75 39.00 19.80 104.55

Projected demand-supply scenario for Lignite:

The incremental Lignite production projection in the Terminal year of XII Plan is 26.96 MT and in the Terminal year of XIII Plan is 35.95 MT. The projected production is not sufficient to meet the anticipated demand in the terminal year of XII Plan. As per the projections received from various agencies of Tamil Nadu, Gujarat and Rajasthan, it is observed that the state of Gujarat will face a deficit in lignite availability during the XII Plan by 9.0 MT, which calls for additional production from the existing mines and / or advancing of the implementation of new mines in the state of Gujarat. Tamilnadu will face 1.64 MT deficit which can be managed by advancing Devangudi project or by improving the production of other three mines. The demand vis--vis production during XII & XIII Plan is given in the table below: XII Plan (Total plan period) Mt State Tamilnadu Gujarat Rajasthan Total Demand 126.61 102.85 70.84 300.30 Production 124.97 93.85 71.34 290.16 shortfall (-) 1.64 (-) 9.00 (+) 0.50 (-) 10.14 Excess/ XIII Plan (Terminal year-Mt) Demand 45.48 43.60 19.54 108.62 Production 45.75 39.00 19.80 104.55 shortfall (+) 0.76 (-) 4.60 (+) 0.26 (-) 3.58 Excess/

As far as Neyveli Lignite Corporation, by putting together the Mines and Power Plants in Tamilnadu and Rajasthan, is concerned, the total Projected Lignite demand for Power and

79

other sectors is 137.35 MT for XII Plan whereas the total Projected Lignite Production is

136.21 leaving a meagre shortfall of 1.14 MT. But during the Terminal year of XIII Plan (49.75 MT) by 0.53 MT.

(2021-22), the projected Production (49.22 MT) for NLC exceeds the Projected demand

XII PLAN Year Projected Demand Projected Excess / Shortfall 6.8 12-13 26.18 26.02 (-) 0.16 13-14 26.68 26.02 (-) 0.66 14-15 26.41 26.02 (-) 0.39

Fig in MT 15-16 27.12 26.95 (-) 0.17 16-17 30.96 31.20 (+) 0.24

XIII PLAN 21-22 49.22 49.75 (+) 0.53

Production

Capital Investment in Lignite Sector

On the basis of the assessed demand and projected production, the investment required in the about Rs. 46,640 Crores is required to implement the planned projects during XII Plan. Out of

XII Plan period in Lignite Sector has been estimated. As per the assessment made, a total of this Rs. 46,640 Crores, the requirement of NLC works out to Rs.31,192 Crores including Rs.19326 Crores for development of coal based power projects and Rs.1,047 Crores for renewable energy sector. The shares of PSUs of Gujarat & Rajasthan in the total investment proposal are Rs. 5,536Coroes and Rs.9,913 crores respectively. Further, only 12% of the remaining 88%, i.e. Rs. 41,050 Crores is planned for development of power generation state-wise and sector-wise investment proposal is given in Annexure 6.4. proposed investment, i.e. Rs. 5,590 Crores is planned for development of mines and capacity, out of which Rs.19326 Crores for development of coal based power projects. The

80

CHAPTER-7 COAL QUALITY & BENEFICIATION 7. COAL QUALITY ISSUES

Consistency in size and quality of coal supplied to consumers is important. In addition to

the constraints of inherent quality of coal being mined in the country, considerable share of coal production from opencast mines has added to the quality issues due to contamination of mined coal with extraneous materials. To overcome quality problems, a number of measures have been undertaken by the coal industry over a period of time. These are as mentioned below: i. ii. iii. iv. v. Selective mining of bands of > 1 meter thickness. Appropriate positioning of OB and coal benches to avoid contamination. Scrapping/cleaning of coal benches before blasting. Installation of metal detectors / Magnet for tramp-iron-removal over running conveyors before loading coal. Having high capacity coal handling plants to dispatch sized and uniform consumers. vi. vii.

quality of coal at all major projects to suit the requirement of the

Establishment of well equipped laboratories at all the projects for regular quality assessment. Shale-picking, at mine face, stocks & loading points/sidings to address the issue of consistent quality.

In order to overcome the problems of oversized coal, the coal companies are establishing Coal Handling Plants (CHPs) and feeder breakers. Coal India Ltd. is supplying almost 99% projects is also helping in producing sized coal for supply to the consumers. A total of 212 CHPs (74 major CHPs and 138 mini CHPs/ Feeder Breakers) with a total capacity of about 277 million tonnes per annum are operating in different subsidiary companies of CIL. Further, 50 Surface Miners deployed at CCL, SECL & MCL produced of sized coal. of crushed coal to the power sector. Further, deployment of surface miners in different

about 103 million tonnes of sized coal in 2010-11, which has helped augmenting supply Installing Auto Mechanical Samplers (AMS) at all silo loading points is under

facility is extended to large consumers with an annual requirement of 0.4 million tonnes and above. Payment of coal value in such cases is based on quality determined through joint sampling and analysis.

implementation in different subsidiaries of CIL. For quality assurance, joint sampling

81

7.1

Coal Beneficiation

purpose and balance are used for non metallurgical purpose due to absence of desired quality parameters and also higher cost of washing for improving its quality for use in last five years to 49.5 Mt in 2010-11 from 32.1 Mt in 2006-07 but the production of

Currently, around 36% of total coking coal produced indigenously is used for metallurgical

steel making. There is an impressive growth in production of indigenous coking coal over metallurgical coking coal remained standstill at about 18 Mt. The production of good quality coking coal did not grow due to depleting reserve of good quality coking coal in coking coal washeries particularly in terms of Yield (ratio of total clean coal produced to the upper seams of existing mines. This has resulted in unsatisfactory performance of total raw coal feed) and Capacity Utilisation. However, the production of non metallurgical (low volatile coking / non linked washery) coal over the last five years has grown more than double. The production of coking coal and use of metallurgical and non-metallurgical coking coal during previous five years is as below: Year Total coking Prod.

coal (Mt)

Metallurgical use (Mt)

Non

metallurgical use (Mt) 31.689 26.682 17.508 16.39 14.866

metallurgical coal 36.0 39.9 49.7 52.4 53.7

of

Growth (%)

2010-11 2009-10 2008-09 2007-08 2006-07

49.533 44.413 34.809 34.455 32.097

17.844 17.731 17.301 18.065 17.231

11.53 27.6 1.03 7.3 1.86

Coal washing is one of the practices being promoted as a measure to encourage

implementation of clean coal technologies. Coal washing is an important area both from

economic and environment points of view. A number of studies carried out earlier have generation and also reduction of emissions. The directive of Ministry of Environment and Forests restricts the use of coal containing more than 34% ash in power stations located

clearly highlighted benefits of using washed coal in improving the economics of power

beyond 1000 km from the pit head and in urban area or sensitive area or critically plant which is now being considered to be reduced to 500 km. With this as a driver, a generation.

polluted area irrespective of their distance from the pit head except any pit head power number of power utilities have shown their inclination in using washed coal for power While coking coal washing has been in practice for quite some time in the country on technical compulsions, washing of non-coking coal particularly for power generation has non-coking coal has increased many folds over the last ten years. come under focus due to implied environmental and economic benefits. Use of washed As mentioned earlier, all coking coal produced is not being washed since a major portion

of this is low volatile medium coking (LVMC) coal which is difficult to wash. However, now been proved to be technically feasible.

efforts are being made to build commercial washeries for washing LVMC coals which have

82

7.1.1

Performance of washeries

Coking coal- Presently CIL operates 17 coal washeries, out of which 12 coking coal washeries with 22.18 Mtpa capacity and 5 are are non-coking coal washeries with 17.22 Mtpa capacity totaling to 39.40 Mtpa. SAIL & TISCO operate 5 coking coal washeries with

a total capacity of 7.70 Mty. The performance of CILs coking coal washeries is not feed coal over the years due to depletion of reserves, the yield and performance of these washeries has been adversely affected. A brief of the performance of the coking coal washeries in operation in the XI plan period is shown below: Capacity (Mty) 2007-08 3.841 0.514 2.82 7.175 satisfactory as these are quite old. Further, due to a significant change in the quality of

Company CIL SAIL TISCO TOTAL

Washed coking coal production (Mt.) 2008-09 3.671 0.577 2.925 7.173 2009-10 2.960 0.526 3.048 6.534 2010-11 3.194 0.537 2.642 6.373 2011-12 (Target) 3.89 0.54 2.60 7.03

/ washery

22.18 2.04 5.66 29.88

The targeted washed coking coal of 7.03 Mt by the turn of XI plan will be available with an approximate 15.5 Mt raw coking coal feed to the washeries. The details of performance of the coking coal washeries in operation in the XI plan period have been shown in Annexure 7.1.

Non coking coal - At present 32 non coking coal washeries with a total throughput washery with a total throughput capacity of 17.22 Mty and others operate 27 non coking of the non coking coal washeries in operation in XI plan period is shown below:

capacity of 95.96 Mty are in operation in the country. CIL operates 5 non - coking coal coal washeries with a total throughput capacity of 78.74 Mty. A brief of the performance

Washery/Company CIL Others Total

Capacity (Mty)

Washed non-coking coal production (Mt.) 2007-08 2008-09 2009-10 10.317 2.232 12.58 10.677 30.442 41.119 11.24 27.71 38.952 2010-11 11.716 20.93 32.64 2011-12 (Target) 11.30 25.00 36.3

17.22 78.74 95.96

The targeted washed non coking coal of 36.3 Mt by the turn of XI plan will be available with an approximate

performance of non-coking coal washeries in operation in the XI plan period have been shown in Annexure 7.2.

52 Mt raw non coking coal feed to the washeries. The details of

83

7.2

Approach of Coal India Ltd. for coal washing

As a long term strategy, CIL is planning supplying washed coal to consumers located away from pit heads and also develop mines of 2.5 Mtpa capacity and above with integrated washeries. Accordingly, CIL has proposed to develop 18 new washeries on a modified Build Operate and Maintain (BOM) basis and 2 (two) new washeries on Turn-Key basis for existing coal mines with a total capacity of about 111 Mtpa at various subsidiary

companies at an estimated cost of approximately Rs. 2320 crore. These include 6 coking coking coal washeries for an ultimate raw coal throughput capacity of 92.0 Mtpa. The details are furnished in the table below: Details of Proposed New Washeries of CIL Sl 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Name Kusmunda Baroud Madhuband Patherdih Patherdih Dahibari Dugda Bhojudih Ashoka Konar Karo New Piparwar Dhori Chitra Sonepur-Bazari Basundhara Jagannath Hingula Ib-Valley Kolarpimpri TOTAL Capacity 10.0 5.0 5.0 5.0 2.5 1.6 2.5 2.0 10.0 3.5 2.5 3.5 2.5 2.5 8.0 10.0 10.0 10.0 10.0 5.0 111.1 Scheme BOM BOM BOM BOM BOM BOM BOM BOM BOM BOM BOM Turn-key Turn-key BOM BOM BOM BOM BOM BOM BOM Type Non coking Non coking Coking Coking. Coking. Coking Coking. Non coking Non coking Non coking Non coking Non coking Coking. Non coking Non coking Non coking Non coking Non coking Non coking Non coking

coal washeries for an ultimate raw coal throughput capacity of 19.1 Mtpa and 14 non-

No

(Mty)

On completion of the proposed new washeries, the capacity coal washeries in CIL will increase from existing 22.18 Mtpa to about 41 Mtpa for coking coal and 17.22 Mtpa to about 110 Mtpa for non coking coal. additional coal produced during XII Plan from new mines. CIL envisages washing of about 90% of the

84

7.3

Coal Washing Technologies

The different technologies in vogue for washing coking and non-coking coal are as under: Coking Coal Washing Heavy media (HM) Cyclones and Froth Floatation Deshaling Jig, HM Cyclone and Froth Floatation HM Washer, Cyclone and Froth Floatation Jig and Heavy Media HM Cyclone, Jig and Froth Floatation

Deshaling Jig, HM Bath, Batac Jig and Froth Floatation

Jig (Coarse Coal), Jig (Small Coal) and Froth Floatation

Non-coking Coal Washing HM Washer, Baum Jig and Froth Floatation Batac Jig ROM Jig HM Washer, Batac Jig HM Cyclone

HM Cyclone, Hydro Cyclone and Spiral Rotary Breaker and Barrel Washer Technologies in vogue in existing washeries of CIL are as follows: Name of Technology

7.3.1

Sl. No

Washery

Coking Coal 1 2 3 4 5 6 7 8 9 10 11 12 Dugda II Bhojudih Patherdih Sudamdih Moonidih Madhuband Mohuda Kathara Sawang Rajrappa Kedia Nandan HM Cyclones, Froth Floatation/Water only Cyclone BATAC Jig for small coal, HM Bath, Froth flotation,Drum filter Baum Jig for Deshaling, Barvoys HM Bath, HM Cyclone HM Cyclones, Froth Floatation HM Cyclones , Water only Cyclone BATAC Jig for small coal, HM Cyclone, Froth flotation, Disc filters HM Cyclone centrifuges Drewboy HM Bath, HM cyclone, Froth flotation, Screen Bowl

Deshaling Jig, HM Cyclone BATAC Jigs for coarse coal and small coal, Froth flotation, Disc filters BATAC Jigs for coarse coal, Jigs for small coal, Froth flotation, Disc filters KOMAG Jigs for coarse coal and small coal, Froth flotation, Disc

85

Sl. No

Name

Washery

of

Technology filters

Non-coking coal 1 2 3 4 5 7.3.2 Dugda-1 Piparwar Kargali Gidi Bina KOMAG Jig for deshaling BATAC Jig ROM Jig Deshaling Disa Bath, KOMAG Jig ROM Jig

New Technology for Coal Beneficiation

The conventional methods for coal beneficiation in vogue are based on wet technology. Moisture is invariably and inadvertently added to the products. Addition of moisture to the clean products offset the benefit of beneficiation to some extent as ash-forming

mineral matters and moistures both have no fuel value and cause wastage of heat when coal is burnt and overall GCV of the solid fuel is affected adversely. Moreover, wet processes invariably generate slurry and require whole lot of circuit for pumping solidfine solid as well as water, effluent control circuit and so on. liquid mixture to the washing equipment, rinsing & dewatering of products, recovery of Availability of water is an issue for setting up new washeries and is a resource deterrent.

One partial washing plant of 5 Mtpa may need water to the tune of 0.2 Mgpd depending

upon technology and extent of washing. Beneficiation of ROM coal to improve its quality

without use of water is an issue recently discussed at various level and drawn attention of all concerns. Dry coal beneficiation technologies are being encouraged for conserving water. The commercially adopted dry beneficiation methods for coal are: Manual picking of shale and stone from conveyor belts. i. Rotary breakers to take advantage of differences in friability between coal, stone and shale. Dry beneficiation technologies are usually suitable for medium-to-high specific techniques available in the realm of dry beneficiation.

gravity of cut which is a case with non-coking coal. There are a number of

Two technologies identified for demonstration under CIL R&D schemes are: i. ii. Dry Beneficiation system using Radiometric Techniques (Ardee Sort) at Bharat Coking Coal Ltd. Dry Beneficiation of coal by All-air Jig at Mahanadi Coalfields Limited. Other wet technology patented by JCOAL is the Variable Wave Jig Technology, which is said to provide better yield, better separation accuracy and increase in applied in the existing washeries with small modifications. the processing capacity compared to conventional jigs. This technology can be

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7.4

Measures for Improving the Performance of Coal Washeries

Many existing washeries have outlived their lives long back and need technological

upgradation for improvement in its performances. In this connection, following modification schemes have been identified by CMPDI/subsidiary companies to enhance/ implementation: improve the performance of coking coal washeries which are under various stages of a) Deshaling plant at Madhuband washery (BCCL)

b) BOBR wagon unloading system at Dugda washery (BCCL)

c) Replacement of worn-out Jig at Bhojudih washery (BCCL)

d) Switching over from manual control to automatic control system for specific gravity e) Modification of Gidi washery (CCL) f) control in Patherdih, Moonidih, Sudhamdih and Bhojudih washery (BCCL)

Modification of Rajarappa washery (CCL)

g) Introduction of primary crushing unit at Kedla washery (CCL) i)

h) Introduction of fine coal beneficiation plant at Swang washery (CCL) at Nandan washery (WCL)

Replacement of Jig and introduction of Spiral Concentrator for fine coal beneficiation Environmental Aspects

7.5

The washeries of CIL are designed for closed circuit system and no effluents are

discharged to outside washery premises as per environmental stipulations. Fine coal is recovered from the effluent through various processes like Froth Floatation, use of cyclones, filters etc. A common problem of coal washeries is handling of rejects or tailings and recovery of fines. The rejects in general are being disposed off for consumption in fluidized bed combustion (FBC) boilers for power generation or for filling the mined-out areas or for filling of low land/construction of road etc. Fines recovery is being addressed through some R&D efforts. 7.6 Details of Existing Washeries of SCCL

Two coal washeries with capacities of 1.5 Mtpa each were established at Manguru and Ramagundam on BOO basis. Two more washeries at RKP CHP and Khairagura area of washeries have been conceptualized and prospects are under study. 7.7 7.7.1 Washery capacity addition in XII Plan Coking coal Though coking coal production has increased from 32.097 Mt in 2006-07 metallurgical coking coal production has increased Belampalli region are proposed and are expected to come up by 2014-15. Some more

to 49.533 Mt in 2010-11; the metallurgical coking coal production has remained almost stagnant at 17 to 18 Mt. The non

considerably during XI Plan period. In XII Plan period, the metallurgical coking coal production is projected to increase to 31.7 Mt during 2016-17. The anticipated washed coking coal

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production in XII plan from existing and proposed washeries is furnished below and washery wise details are furnished in Annexure-7.3.
Company Washery Mty CIL SAIL, TISCO Total Existing CIL Total Coking (Existing+ proposed) 22.18 7.70 29.88 2012-13 CC Mid

Capacity

2013-14 CC Mid CC

2014-15 Mid CC

2015-16 Mid CC

2016-17 Mid

Coking coal (Existing washery): 3.98 3.20 7.18 3.36 3.36 4.22 3.40 7.62 3.55 3.55 4.45 3.60 8.05 3.65 3.65 4.61 3.80 8.41 3.78 3.78 4.86 4.00 8.86 3.91 3.91

Coking coal (Proposed washery): 19.1 48.98 7.18 3.36 2.76 10.38 3.30 6.85 4.83 12.88 6.83 10.48 5.06 13.47 7.17 10.95 5.06 13.92 7.17 11.08

7.7.2

from existing and proposed washeries is furnished below and washery-wise details are furnished in Annexure-7.4.

Non coking coal - The projected washed non coking coal production during XII plan

Washery / Company Non coking coal (Existing washery): CIL Others Total Non coking (Existing) Non coking coal (Proposed washery): CIL Total Non coking (Existing & Proposed)

Capacity (Mty)

Washed non-coking coal production (Mt.) 12-13 11.18 27.00 38.18 38.18 13-14 10.33 30.00 40.33 3.73 44.06 14-15 15-16 16-17 10.46 39.00 49.46 65.00 114.46

17.22 78.74 95.96 79.00 174.96

10.339 10.445 33.00 36.00 43.339 46.445 14.20 57.54 42.26 88.70

Note: The anticipated washed coal production from proposed washeries is subject to MoEF clearance for construction of the washeries as per schedule.

Since the anticipated total capacity of beneficiation of non-coking coal in India, by the end of XII plan, is 199 Mty and projected low grade coal production, other than pithead linked coal, is 360 Mt, there will be a huge gap of 161Mt washing the entire low grade coal to be produced. Type of coal as given below for capacity addition requirement of

Projected production(Mty) Anticipated washing Capacity addition capacity (Mty) required (Mty) Need based Need based

Superior grade coal Pithead TPS linked low grade coal

159 115

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Type of coal

Projected production(Mty) Anticipated washing Capacity addition capacity (Mty) required (Mty)

(approx.) Remaining low grade coal 360 199 161

However, this capacity addition gap of 161 Mt will reduce further in the event of building up some capacity in the private sector. Further, CIL is also formulating plan to set up more no. of washeries (non coking and coking) in the 2nd phase with approximate total way the washing capacity addition gap will come down considerably. XI th plan is furnished below :

capacity of 129 Mty, for which action will be initiated in the later part of XII plan. In this Finally, the anticipated scenario of coal beneficiation by the turn of XII th plan as well as At present, CIL operates 17 washeries (coking-12; Non-coking-05 ) with a total capacity of 39.40 Mty. Against this, likely washed coal production in TY XI plan- 15.19 Mt (coking-3.89 Mt & Non-coking 11.30 Mt) Capacity vis-a-vis washed coal production projection

Details

Present capacity (Mty)

TY XI Plan (11-12)

TY XII Plan (16-17)

Washed coal production (Mt) Coking CIL Others Total 22.18* 7.70 29.88 Noncoking 17.22 78.74 95.96 Coking 3.89 3.14 7.03 Non-coking 11.39 25.00 36.30 Coking 9.92 4.00 13.92 coking 75.46 39.00 114.46 Non-

*> 30 yrs. old, Operation capacity much lower. During XI plan, CIL targeted to take-up 20 new washeries (capacity 111.10 Mtpa) at estimated cost of approx. Rs. 2320 crs. (6 coking , capacity 19.10Mtpa & 14 Non-coking, capacity 92.00Mtpa)

Besides these, in 2ND phase CIL has envisaged to construct 17 coal washeries with a total capacity of about 129 Mty. With this, Coal washing capacity of CIL will enhance to the extent of 279 Mty. Environmental Issues: Environment clearance is one of the main issues causing inordinate delay in commencing construction of the washeries. The main impediment in obtaining the clearance is as fuel for generation of power in FBC power plants. utilization of washery rejects in an environmentally friendly manner i.e. using the rejects

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Setting up new FBC plants using these washery rejects as fuel need to be encouraged, supported by Tax Holidays. The requirement of developing reject based FBC power plant should not be so rigid that washery as well as power plant should be constructed may also be considered for construction of such power plant if no other alternative for disposal / utilization of the washery reject is conceived and approved. 7.8 Changing over to GCV based coal pricing for non coking coal

simultaneously, rather a breathing period of 3/ 4 years after commissioning the washery

Internationally trading of non-coking coal is based on the Gross Calorific Value (GCV) However, in India grading and pricing of non-coking coal is based on Useful Heat Value system of coal which is the total heat content of coal as measured in the laboratory.

(UHV) system which is based on an empirical formula suggested in 1960s having a in the boilers in use at that time. As per this formula, the UHV of a coal having about 2000 K cal of GCV works out to be zero. component of ash and moisture penalty taking into account the efficiency of burning coal

Moreover, the existing band widths of various grades calculated on the basis of UHV are very wide and provide a little incentive to coal producers for improving quality of coal. A number of High Level Committees including the Integrated Energy Policy Committee have recommended adopting GCV based system in place of UHV based system for grading and pricing of non-coking coals in line with the international best practice. It is coking coals before commencement of the XII Plan.

high time that coal sector should switch over to GCV based system for trading of nonTo monitor the quality of coal being dispatched from coal mines provision of automechanical samplers and analysis system needs to be established at each mine or point of dispatch on priority. Provision of mobile labs should be made for taking samples and analyzing from coal stocks and other places. 7.9 Coal Conservation and Development

The issue of conservation of coal and development of transport infrastructure in coalfield

areas has been addressed through the promulgation of Coal Mines (Conservation and Development) Rules, 1975 soon after the nationalisation of coal sector in the early 1970s. Development) Act, 1974, (CM (C & D) Act, 1974) and the Coal Mines (Conservation and The provisions of the CM (C & D) Act, 1974 mandate the need for extending assistance underground mines in conjunction with sand stowing for filling the voids created and for taking up various protective measures for extraction and conservation of coal. The Act encouraging Transport Infrastructure Development in coalfield areas. In each financial year, a sum not exceeding the net proceeds also mandates the offer of assistance towards Research and Development activities and of the SED levied and

to the coal companies for encouraging coal production from depillaring panels of

collected during the preceding financial year or years is disbursed by the Central Government to the owners, agents or managers of coal mines or to any other person for one or more of the following purposes:

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(a) (b) (c)

Conservation of coal and development of coal mines; Grant of stowing materials and other assistance for stowing operations; Execution of stowing and other operations for the safety in coal mines or Research work connected with conservation and utilisation of coal; and Any other purpose connected with the conservation of coal or development of coal

conservation of coal; (d) (e)

mines, or transportation, distribution of coal.

An Advisory Committee called Coal Conservation and Development Advisory Committee (CCDAC).constituted under the provisions of the CM(C&D) Act, 1974 and CM (C & D) Rules, 1974 under the Chairmanship of Additional Secretary (Coal) with Members from

Ministry of Coal, Ministry of Labour, Planning Commission, Coal Companies, Central

Institute of Mining and Fuel Research, etc. advises the Government regarding the formulation and implementation of National policy in relation to Coal Conservation & disbursement of SED proceeds to different coal companies etc. The CCDAC on it for implementing related activities under the CM(C&D) Act, 1974. has the Development Activity and scientific utilisation of coal seams of the country, rates of SED, power to regulate its own procedure and thus is a statutory body with powers conferred Two Plan Schemes of CCDA namely, Conservation and Safety in Coal Mines and Development of Transport Infrastructure are under implementation under the provisions of the CCD Act. Coal Controllers Organization is vested with the responsibility of implementation of the schemes.

Presently only partial reimbursement to coal companies i.e. 90% for protective work, 70% for sand stowing and 70 % for rail/roads infrastructure is taking place and the amount available is not adequate. Moreover, a number of new coal projects are coming up as a result of new coal block allotment for captive purposes which need to be provided with part pf the Stowing excise Duty being collected is also required to be used for funding implementation of Master Plan for Jharia and Raniganj. The current rate of SED of Rs.10 addressing the proposed funding of the Master Plan. 7.9 i. ii. iii. iv. v. Action for XII Plan Coal India to quicken the process of implementing all the identified new washeries. Supplying washed coal to TPS located away from pithead. Augmenting washery capacities to supply of washed coal to TPS located more than 500 km away within next 3 years. 100% crushing and sizing of coal before dispatch must be ensured by coal companies within next two years. commencement of XII Plan. Auto mechanical samplers to be installed at all dispatch points/mines before road and rail infrastructure connecting to the main lines for coal evacuation. Further, a

per tonne was last revised in June 2003 and this needs to be suitably enhanced for

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vi. vii. viii.

Deployment of mobile labs for coal sampling and analysis. Deshaling of ROM coal if not complete beneficiation needs consideration wherever feasible. Strengthening/ Renovation and modernization of existing coking coal washeries for improved yield and to match the raw coal feed quality needs immediate consideration. Augmenting coking coal and LVMC coal production to feed the washeries is critical. New washing technologies including dry coal beneficiation needs consideration. Facilitating setting up new washeries in the private sector. Disposal of washery rejects in an environmentally acceptable manner. Provision of Rail evacuation facilities to new washeries. for trading of non-coking coals before commencement of the XII Plan. Coal sector should switch over to GCV based system in place of UHV based system

ix. x. xi. xii. xiii. xiv. xv.

The current rate of SED of Rs.10 per tonne was last revised in June 2003 and this Plan.

needs to be suitably enhanced for addressing the proposed funding of the Master

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CHAPTER-8 EXPLORATION FOR COAL & LIGNITE 8.1 STAGES OF EXPLORATION

Exploration for coal and lignite in the country is taken up in stages. In Preliminary Exploration, geological surveys are undertaken to identify potential coal / lignite areas. During Regional / Promotional Exploration wide spread drilling is undertaken to establish broad frame-work of the deposits. The potential blocks are selected for Detailed exploration is undertaken to aid mining. Exploration to provide data for mine projectisation. After start of mining, Developmental

It is desirable that the results of Detailed Exploration are available about 10 years in

advance of the production needs to allow projectisation and mine development. Regional (and Promotional) Exploration, accordingly, is needed to be taken up by 4-5 years in advance to allow planning for detailed exploration. 8.2 COAL Regional / Promotional Exploration: Against a target of 1.94lakh meters (revised to Exploration during 11th Plan, 1.14 lakh meters (78%) of drilling will be achieved and 7.07Bt of coal resources to be established.. 1.47lakhm during mid-term review of core group, CGPB-Com-V in 2009) for Regional

REVIEW OF COAL AND LIGNITE EXPLORATION IN 11th PLAN

drilling, 2.95 lakh meters (74%) is expected to be achieved, establishing 20.05 Bt of coal resources.

In Promotional Exploration, against a target of 4 lakh meters of exploratory

view of the trends world over, these surveys were considered as part of regional (promotional) exploration by Sub Committee on Energy Minerals. National Geophysical Research Institute (NGRI), a premier organization for geophysical Studies in the country, of 31 Line Kilometer (L.km) in coal areas HRSS survey will be carried out during 11th Plan.

2D HRSS Surveys were not a part the exploration programme of 11th Plan. However, in

was therefore, inducted to carry out these surveys in coal areas. It is expected that a total

Detailed Exploration for Coal: Against a target of 5.00 lakh meters in CIL areas, 11.28 lakh meters (226%) of exploratory drilling will be achieved by CMPDI and its contractual Plan. In SCCL area, 2.34 lakh meters of drilling (47%) will be achieved against a target of 5.0 lakh meters, establishing 0.50 Bt of reserves. agencies including MECL and 8.52 Bt of reserves are projected to be proved during 11th

as part of detailed exploration efforts in CIL areas. The results are encouraging as far as

2D HRSS involving 120 line km (Lkm) of survey covering 5 blocks is likely to be completed

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reduction in quantum of exploratory drilling required for delineation of structure.

delineation of faults is concerned. These surveys, once established, are likely to result in

In Non-CIL areas, 8.15 lakh meters (60%) of drilling against a target of 13.5 is envisaged to be carried out establishing 5.20Bt of reserves by the end of 11th Plan.

Geophysical logging, as part of detailed exploration, spread over almost all the CIL and & non coring Bhs) is expected to be geophysically logged during 11th Plan. LIGNITE 1.32lakh meters achieved during 11th Plan mainly by NLC and by other agencies viz. Exploration in their respective states by drilling 1.04 lakh m of drilling and established 1.85 Bt of lignite resources. Regional / Promotional Exploration: Against a target of 1.48 lakh meters in lignite areas,

Non CIL Blocks, was carried out and a total of 4.5 lakh m of borehole length (both coring

GMDC and RSMML. The governments of Gujarat and Rajasthan have undertaken Regional

In Promotional Exploration, against a target of 3.50 lakh meters of exploratory drilling, resources.

2.74 lakh meters (78%) is expected to be achieved, establishing 3.22Bt of lignite

view of the trends world over, these surveys were considered as part of regional (promotional) exploration by Sub Committee on Energy Minerals. National Geophysical Research Institute (NGRI), a premier organization for geophysical Studies in the country, of 94 Lkm in lignite areas HRSS survey will be carried out during 11th Plan was therefore, inducted to carry out these surveys in lignite areas. It expected that a total

2D HRSS Surveys were not a part the exploration programme of 11th Plan. However, in

Detailed Exploration for Lignite: Against a target of 0.61lakh metres in NLC areas, 0.54 In other areas, 0.77 lakh meters of drilling against a target of 0.77 lakh metres is the end of 11th Plan.

lakh metres achieved and 1.98 Bt of reserves are projected to be proved during 11th Plan.

envisaged to be carried out by GMDC, GHCL, RSMML establishing 0.47Bt of reserves by

As part of Detailed Exploration in lignite around 0.51 lakh m of geophysical logging is likely to be completed during 11th Plan in NLC areas. 100 Lkm Resistivity surveys alongwith 300 Vertical Electrical Soundings (VES) are expected to be carried out in lignite

areas under NLC

lakh metres achieved during 11th Plan. In other areas, 0.87 lakh meters of drilling against the end of 11th Plan.

Developmental Exploration: Against a target of 1.48 lakh metres in lignite areas, 1.32

a target of 0.975 lakh metres is envisaged to be carried out by GMDC, GHCL, RSMML by

8.1

A summary of the Programme and Progress of work during 11th Plan is given in Annexure

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8.3 REVIEW OF INTEGRATED COAL AND LIGNITE RESOURCE INFORMATION SYSTEM (ICRIS & ILRIS). ICRIS The Net-accessible coal resource database structured on the UNFC pattern approved in Oct2004 are under progress at different data centers in CMPDI/ Singareni. The projects maintenance and regular up dating. need to be continued into 12th Plan with enhanced outlays for successful completion,

The following jobs have so far been completed for ICRIS project: 1. 2. 3. 4. 5. Nine data centers were developed The data acquisition from all the available old reports and maps has been completed, including existing mine maps, topographical maps etc. All the maps have been georeferenced by using a vendor. end, with integration of RDBMS, GIS and web tools.

A consultant has been appointed to design a RDBMS database using GIS as a front The modeling data, as being generated from different RIs are also being migrated. database will be available for use, with data from eight zones initially.

The database design is expected to be completed by October 2011, and the

ILRIS The Net-accessible lignite resource database structured on the UNFC pattern approved in Oct2004 is under progress at data center in NLC. The following jobs have so far are nearing completion or have already been completed for ILRIS project. 1. 2. 3. 4. 5. 8.4 Establishment of Data Centre Procurement of H/W & S/W Map Data Capture Borehole & Descriptive Data Capture Database Design & Data storage REVIEW OF CBM EXPLORATION

47 boreholes spread over different coalfield and 3 boreholes in lignite fields are likely to be tested for CBM during 11th Plan under Promotional Scheme. 8.5 COAL not covered in the 11th Plan by the MoC as these activities are funded by Ministry of Mines (MoM). The same is not being reviewed here. Regional Exploration: The fund provision for Regional Exploration for coal and lignite was ALLOCATION OF FUNDS DURING 11th PLAN

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the the original proposal of Rs 383.50cr. including the expenditure on ICRIS, ILRIS and CBM Studies for 11th Plan. The cost of Integrated Coal Resource Information System (ICRIS) was revised (lowered) due to free supply of data by GSI. During Mid Term Review 185.38cr. has been released by MoC till August 2011. (Feb2011) the approved outlay has been enhanced to 305.82cr. Against this only Rs

Promotional Exploration: The financial outlay of 264.02cr. was approved by MoC against

Detailed Exploration in CIL/SCCL: The funding towards Detailed Exploration in 11th Plan was done by CIL and SCCL from their own resources, CIL expenditure on detailed expenditure is to be projected around 714 crores and SCCL is likely to spend around 88 blocks available for Captive mining are not available.

crores for detailed exploration during 11th Plan. The details of expenditure in respect of

Detailed Exploration in Non-CIL Blocks: MoC approved the expenditure of 472.94 crores Detailed Drilling in Non-CIL blocks. During Mid Term Review (Feb2011) the approved released by MoC till August2011.

against the proposed expenditure of 893.89 crores for undertaking 13.50 lakh metre of outlay has been enhanced to 523.08 crores. Against this a sum of Rs 324.22 has been

LIGNITE Detailed Exploration in NLC The funding towards Detailed Exploration of lignite in 11th Plan was done by NLC from their own fund. The expenditure is likely to be around 16.5 crores for detailed exploration in lignite during 11th Plan. 8.6 STATUS OF COAL RESOURCES & NEEDS OF 12th AND SUBSEQUENT PLANS. The Coal Resource Status: The summary of the inventory of coal reserves as on 1.4.2011(Annexure 8.2) incorporating exploration results of 4 years of 11th Plan and estimated area of coverage out the total basinal area of around 35000sq km is given below:

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Prognosticated Potential Coal

Area (Sq km) Covered by Regional covered by Regional Bearing area Remaining to be

(sq km)

Plan

Exploration

Exploration

Covered by Detailed %

Proved Indicated Inferred (Mt) (Mt) (Mt)

Total (Mt)

Exploration

End of 8th Plan End of 9th Plan End of 10th Plan End of

15079

8526 56

6553 6768 5311 3606

4824 5048 5568

56 70.443 89.750

41.761

201.954 234.114 253.301

17303 10535 60 17303* 11992 69 17619* (17303 316**) + 14013 79

48 87.319 109.378 37.417 46 95.866 119.769 37.666

11th

Plan

(770+2836***) 4226 (1430+2836***)

7188+

51 114.00 137.47

34.39 285.86****

Beginning of 12th Plan

18279

*Tentative Estimate, **Addl. Area identified during 10th Plan, *** Includes 2836sq km area under CBM Blocks, ****Around 10.87Bt of coal has been allocattees. resources,
+Does

not include area covered by detailed exploration by captive block

extracted from 1950 to 2010-11 from these

The type wise distribution of the coal resources is as below: Category Proved (in Bt) 4.62 12.57 0.48 95.74 0.59 114.00 Indicated (in Bt) 0.70 12.00 1.00 123.67 0.10 137.47 Inferred (in Bt) 0.00 1.88 0.22 31.49 0.80 34.39 Total Resou rce % 1.86 9.25 0.60 87.77 0.52 100.00

Type of Coal Prime Coking Med. Coking Semi Coking Non- Coking Tertiary Coal Total

(in Bt) 5.31 26.45 1.71 250.90 1.49 285.86

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The Lignite Resource Status: As on 1.04.2011 the inventory of lignite resources stands at 40.91 Bt with 6.15 Bt in Proved category. (Annexure 8.3) 8.7

STATUS OF COAL BLOCKS UNDER DIFFERENT DISPENSATIONS: Apart form 401 mines Coal India Limited has 236 coal blocks under its command. There is a requirement of detailed exploration in 78 partially/regionally explored CIL blocks. 328 Coal Blocks have been identified for Captive allocation. Out of 191 allocated coal blocks, Mining Plans for 105 Blocks (with around 483 Mty production capacities) have already been approved. Out of remaining 223 blocks (328-105), 187 blocks need to be explored exploration undertaken by block allocatees in these blocks is largely unknown. detailed exploration in 76 of these blocks. by the allocatees/Prospective allocatees. The information on detailed

In addition 116 (146 minus 30) Blocks proposed to be retained by CIL. There is a need of 8.8 THE DEMAND FOR COAL AND LIGNITE AND THEIR SUPPLY The Expert Committee on Integrated Energy Policy has projected coal requirement at the end of different plan periods which is as follows:

Terminal Year of 11th Plan (011012) 12th Plan (016017) 022) 14th Plan (026027) 032) 15th Plan (03113th Plan (021-

Demand for Power Coal (Mt) 493 656 814 1133 1478

Demand for NonPower Coal* (Mt) 164 221 299 408 562

Total (Mt) 657

Remarks

*Includes 877 1113 1541 2040 coking coal

The Regional and Promotional Exploration will require to be continued in the 12th Plan to the subsequent plan periods to meet the requirement to sustain the desired level of production. 8.9 EMERGING REQUIREMENTS

provide identification of potential coal & lignite bearing areas for Detailed Exploration in

Coal Exploration: Out of the total Prognosticated Potential Coal Bearing Area of 17619sq

km, around 770sq km area will remain to be covered by Regional exploration by the end

of 11th Plan. In addition around 660sq km additional Prognosticated Potential Coal

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Bearing Area has been identified based on the investigations during 11th Plan. As such 1430 sq km of Prognosticated Potential Coal Bearing Area needs to be covered by Regional Exploration. A total of 58 new coal blocks have been identified over the newly demarcated Prognosticated Potential Coal Bearing Area. All these blocks along with the spillover blocks from 11th Plan need to be taken up for Regional Exploration.

Out of 285.86 Bt of coal resources established by 1.04.2011, 171.86Bt of resources

remain in Indicated/ Inferred category. All these resources need to be Proved to facilitate their projectisation. On the basis of the results of Regional and Detailed Exploration undertaken during 11th Plan a total of 37 Blocks have been identified for undertaking Detailed Exploration during 12th Plan.

With more and more importance being attached to coal for meeting the energy needs of the country, and the demand projections of 1133 Mt, 1478 Mt of non coking coal by the coking coals needs to be speeded up to meet the demand on sustainable basis. Coal Exploration efforts should not only aim at enlarging the resource base through terminal years of 14th and 15th Plans respectively, the pace of exploration to explore non

regional exploration but also to upgrade the known resources remaining under Indicated and Inferred categories through detailed exploration to facilitate their projectisation for mining.

Considerable part of the coal basinal areas left for exploration activity being concealed in the intermediate and deeper levels (beyond 300m depth). As such there is also the emerging need to fully bring out the potential of coal resources, which are at greater the coal resources. depths, for other exploitation like CBM, underground gasification (UCG) etc. to augment and under younger cover, substantial accretion of resource in coming years is envisaged

With ever increasing demand of steel in the country the requirement of coking coal is

projected to increase from 69.47Mt to 85.06Mt at the end of 12th and 13th Plans There is a need to focus exploration efforts on the prime coking coal resources available beyond 300m depth to bring them to 'Proved' category.

Lignite Exploration: The possible target areas for lignite exploration may be: i) Extension areas of already proved blocks viz Neyveli, Mannargudi in Tamil Nadu, Eastern part of Kutch Basin and Sanchor basin in Gujarat. ii)

Barmer Basin, Jaisalmer Basin, Bikaner Basin and Nagaur Basin in Rajasthan and

Areas identified from gravity and magnetic survey work in Barmer district in Rajasthan state.

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iii)

Lignite occurrences reported by other agencies in respect of certain areas viz. Pradesh and Tertiary sedometns in Raniganj Coal field in West Bengal.

Kerala-Konkan basin in Kerla and Gudivada, Buntumilli and Mundapeta in Andhra

iv)

Occurrence of Tertiary formation identified based on Remote sensing studies in Rajasthan and Gujarat states .

Coal Bed Methane Investigations & Assessment of Potential Shale Gas in Coal Formation:

as even if the gas content is less, the overall CBM resource is compensated by thickness CBM.

There is strong need to generate CBM related data from thick/inferior coal/lignite seams,

of seams and also by shallow occurrences, which would entail less cost of recovery of

Although shale gas has been produced for more than 100 years in the coal bearing

Appalachian Basin and the Illinois Basin of the United States, studies in this direction has

not been carried out in India so far in coal bearing organic carbon rich shale of Gondwana basin. Development of this resource will be in the national interest and if found suitable, will bridge the gap between demand and supply of energy resource existing in the country on account of accelerated GDP growth. 8.10 COAL Regional Exploration: The programme for Regional Exploration with 1.05 lakh meters of 5.789Bt in coal. drilling in coal has been drawn up. GSI will be able to establish resource base of about

PROGRAMME FOR 12th PLAN FOR COAL AND LIGNITE

Promotional Exploration: A programme for 4.80 lakh meters of drilling in coal has been drawn up. 16.64Bt will be established.

About 1204 sq. km. area will be covered in coal and a resource of about

programme has been drawn up with 54.46 lakh meters of drilling in CIL and SCCL and Non CIL areas.

Detailed Exploration: Keeping the production requirement beyond the 12th Plan in view, It is expected that 76.80 Bt of coal reserves will be Proved through

Detailed Exploration. Similarly, a programme for Detailed Exploration for lignite involving 0.85 lakh meters of drilling has been drawn up. However, major part of the exploration other agencies involved in detailed exploration. activity will need to be outsourced in view of the limited capacity available with CMPDI &

Developmental Exploration: Programme for 1.61 lakh meters of Developmental Exploration has been drawn up in CIL and SCCL.

Coal Bed Methane Investigations & Assessment of Potential Shale Gas in Coal Formation: CBM Studies in 60BHs and Shale Gas Studies in 25 boreholes have been proposed during 12th Plan.

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LIGNITE Regional Exploration: The programme for Regional Exploration with 0.74 lakh meters of drilling in lignite has been drawn up, to establish resource base of about 0.30Bt in lignite.

Promotional Exploration: A programme for 3.34 lakh meters in lignite has been drawn up. In lignite, 5.30Bt of resources will be established covering an area of 6047sq km.

Exploration in lignite by NLC, RSMML and GMDC to establish 0.51 Bt of resources.

Detailed Exploration: A programme for 0.85 lakh meters has been drawn up for detailed

Developmental Exploration: Programme for 2.059 lakh meters of Developmental Exploration has been drawn up in, NLC and Non NLC areas. given below: A table giving the details of the proposed Exploration Programme during 12th Plan is

Exploration stage

Agency

Coverage (Sq km)

Area

Drilling in 12th (Lakh m) Plan

Projected

Likely to be established in 12th Plan ( Bt)

Resources

Preliminary

GSI GSI

No requirement of Drilling & no resource to be established as per nature of work 225 451 100 1204 6047 1429 6598 1609 155.50 NA 508 2272.5 30 43 104.18 1.05 0.08 0.66 4.80 3.34 5.85 4.10 30.52 4.91 NA 19.03 54.46 0.15 0.046 0.65 Coal Lignite Coal Lignite Coal Lignite CIL Areas SCCL Area Own areas Non-CIL Own area Own area Non-NLC 5.78 0.10 0.20 16.64 5.30 22.42 5.6 58.61 1.95 NA 16.22 76.80 0.30 0.115 0.10

Regional

DMGR CGMG GSI, MEC &

Promotional Total

CMPDI DMGR

GSI, MEC &

Regional + Promotional CMPDI SCCL Detailed (Coal) State Govts. & Pvt. CMPDI Total Detailed Coal Detailed (Lignite) NLC RSMML GMDC NTPC,

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Exploration stage

Agency

Coverage (Sq km)

Area

Drilling in 12th Plan (Lakh m)

Projected

Likely to be established in 12th Plan ( Bt)

Resources

Total Detailed Lignite Developmen tal Coal CIL Areas SCCL Areas NLC Areas Developmen tal Lignite GMDC GIPCL RSMML VS Lignite Total developmental Lignite UCG Lignite GMDC GIPL NLC Total UCG CBM Studies CMPDI GSI CMPDI Coal Lignite Coal Lignite

177.18

0.85 0.10 1.51 1.61

0.51

Total developmental Coal 5.0 5.0 10.0 0.05 0.001 20.051

0.947 1.005 0.055 0.05 0.002 2.059

10 12 170 192

0.045 0.020 0.12 0.185 borehole borehole borehole 150 Lkm 50sq km 25 20 40

(Promotional Scheme) Shale Gas Studies 2D HRRS 3D HRSS

(Promotional Scheme) (Promotional Scheme) (Promotional Scheme)

Coal Resource Information System & Lignite resource Information System: Both these projects will be continued in XII Plan for their successful completion and maintenance thereafter. 8.11 a) NEED FOR CAPACITY ENHANCEMENT AND MODERNISATION Capacity Enhancement: Considering the likely achievements in Regional and

increased requirement to the tune of 42% and 120% for Regional & Detailed Exploration meet the targets set for 12th Plan.

Detailed Exploration during 11th Plan vis a vis the progamme for 12th Plan with envisaged

respectively there is an urgent need to enhance the capacities of exploration agencies to

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The existing exploration agencies viz. GSI, MEC, CMPDI etc., all in the Govt. and Public Sector, have the full range of geological, drilling, geophysical, coal petrographic, geochemical, remote sensing, computer modeling and other capabilities.

However, the capacities of coal exploration agencies both in Govt/PSUs and state governments presently available are almost fully utilized for the present level of exploration. The increase in exploration activities, therefore, entails enhancement of

drilling capacities as well as technical support system both in terms of drilling equipments and manpower.

The available capacities in private sector are very limited. However due to the lack of adequate technical environment and facilities available with them, the outsourcing of exploration to these agencies will need close coordination and supervision by established exploration agencies.

The existing capacity of laboratories for undertaking chemical analysis of coal cores is of additional coal core generation CIMFER, CMPDI, MECL and all other agencies need to enhanced the capacity of chemical, petrographic and related analysis on priority basis. b)

not sufficient to meet the present level of exploration. In order to meet the requirement

work and there is a continuous need for its modernisation. For this purpose, hydrostatic

Modernisation: Drilling is the most important single input for mineral exploration

and reverse circulation drills need to be selectively deployed. For future deeper this adequate exposure at established agencies will be required.

resources/areas introduction of oil-well drilling technology may also be considered. For

Data acquisition and interpretation being the most important part of any exploration activity also need to be modernized by introducing state of the art techniques in i) data computers/laptops etc), ii) Geological Mapping (Satellite Imageries, GPS, etc.), Core acquisition, transmission (Information technology, Internet, GPS, Sattelite imageries, logging (Core Scanners), iii) Borehole Geophysical logging (all latest probes for different Processing (Computers, data processing softwares), vi) Deposit Modelling (Modelling parameters), iv) Data Storing & Retrieval (Computers/laptops , Data Base), v) Data

Softwares), vii) Plans Preparation ( GIS, Autocad, Scanners, Plotters etc.). 8.12

RESOURCES

NEED FOR UNITED NATION FRAMEWORK CLASSIFICATION (UNFC) OF

classification system without assessment of mineability. The UNFC is a three digit code based on system where in first digit represent economic viability axis, second digit classification system has the obvious advantage of providing a ready and well defined

The ISP addresses only the volume and tonnage. It is purely a geological resource

represent feasibility axis & third digit represent geologic axis. The UNFC type of

that all agencies involved in coal exploration switch over to UNFC System for reporting of

picture of coal occurrences for investments and exploitation. It is, therefore, necessary

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resources. Suitable mechanism also needs to be evolved for flow of information from mining companies for updation of resources on yearly basis. 8.13

FINANCIAL OUTLAYS OF EXPLORATION PROGRAMME FOR 12th PLAN

A total fund of Rs.1621.21crores is proposed to be provided by Govt. for Regional Plan. Out of it, Rs.546.52cr is required for Promotional Exploration Scheme. A fund of Rs. 974.69crore is proposed to be provided by the Govt. for Detailed Exploration in Non-CIL blocks during 12th Plan.

Exploration, Promotional Exploration and Detailed Exploration in Non-CIL Blocks in 12th

will provide about Rs. 188.00 crores for similar exploration in SCCL blocks. NLC, RSMLL & GMDC will spent about Rs 43.07 crore for detailed exploration of own lignite blocks. below: The total fund requirement assessed for all Exploration activities during 12th Plan is given Total Fund Requirement Assessed for all Exploration activities during 12th Plan

A fund of Rs. 1680.91cr. is required for Detailed Exploration in CIL blocks whereas SCCL

Sl. No

Item

Scheme

Estimated requirement (Rs.Cr) Fund

Source of Funding

Proposed

A. To be Funded by Govt. 1. Promotional Exploration a) Coal Exploration c) Coal data base Promotional - do - do - do - do - do Expl. 409.69 51.92 9.05 21.21 54.65 MoC MoC MoC MoC MoC

b) Lignite Exploration d) Lignite data base Gas

e) CBM Studies/Shale Studies

f) 10% for NE region Sub-Total 2. Regional Exploration a) Coal & Lignite

546.52 Regional Expl. (Aprox) 100.00 Detailed 974.69 MoC 100.00 MoM

Sub-Total 3. Detailed Exploraion of Coal in Non-CIL Blocks Exploraion in Non-CIL Blocks

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Total of A: Funded by Govt. a) MoC b) MoM Total of A B. To be Funded by Coal/Lignite Companies 1 Detailed Exploration in Coal a) CIL b) SCCL Sub-Total 2 Detailed Exploraion in Lignite a) NLC b) RSMML c)GSMDC Sub Total Total of B Total of Detailed Exploration Grand Total of A and B

1521.21 100.00 1621.21

1680.91 188.00 1868.91 21.23 20.00 43.07 1911.98 28886.67 4507.88 1.84

CIL

SCCL

NLC

RSMLL

A policy decision for continuous funding for detailed exploration in Non CIL blocks needs to be taken. 8.14

RECOMMENDATIONS

Promotional Exploration: Promotional Exploration for coal and lignite has been demonstrably effective in increasing the national Coal and Lignite Inventory at a faster completed. rate and should, therefore, continue till the coverage of coal/lignite fields is broadly

Detailed Exploration in the Non-CIL blocks and its outsourcing: For expeditious allocation of coal blocks to captive users, the Non-CIL blocks need to be explored in details on jobs. priority at faster pace. The increase in detailed exploration will require outsourcing of

Continuation of ICRIS and ILRIS Projects: The creation of a coal/ lignite resource data base to provide Net-accessible resource information needs to be continued for their successful completion and maintenance. Developmental Exploration:

working mines should be given adequate attention and organization to help reduce surprises and, thereby, the cost of mining.

It is recommended that Developmental Exploration in

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Clean Coal Technology: The assessment of CBM resources needs to be continued in 12th Plan. In addition assessment of Shale Gas potential in coal formations of different coalfields may be taken up.

Exploration in Forest Areas: The present guidelines more or less satisfy the requirement of regional exploration for coal as at least 1 borehole per sq km is required to categorize the resource under 'Indicated' category as per the ISP. However, 15 to 20 boreholes are needed to be drilled per sq km for open cast and underground prospects, respectively, to Prove the resources to the desired level of confidence for mine planning. The above guidelines do not address the requirement of detailed exploration and need to be revised to allow 15 to 20 boreholes per sq km immediately.

Exemption from the need for 'Prospecting License: CMPDI, SCCL & NLC are premier organizations in Detailed Exploration of coal. Hence they may be included in the list of organisations exempted from seeking 'Prospecting License' as is the case with GSI/MEC.

Exploration for Coal in Identified CBM Blocks: A total of 21 blocks have so far been

identified for CBM exploration and exploitation, covering an area of about 8800 sq.km. not been covered by Regional and Detailed exploration. In view of the fact that some of

Majority of these blocks are available in the deeper part of different coalfields which have the CBM blocks have already been offered and the remaining are in the process of offering, a policy decision needs to be taken whether Regional Exploration and Detailed Exploration can be taken up in such identified CBM blocks to assess the national inventory of coal.

Capacity Enhancement & Modernisation: The increase in exploration activities entail enhancement of drilling capacities as well as technical support system both in terms of Techniques, Data Acquisition & Transmission, Data Storage & Retrieval, Data considered necessary to achieve the targets set for 12th Plan. drilling equipments and manpower (both Geology & Drilling). Modernisation in Drilling Processing & Deposit Modelling Resource assessment and Plan/Report Preparation is

Need for Flow Information from Block Allottees: With the allotment of a large number of regionally explored coal & lignite necessary to evolve a mechanism of data flow from these entrepreneurs to the GSI other than SCCL areas) and NLC for lignite block (which is the nodal agency for detailed lignite exploration in the country) in respect of exploration activities undertaken by these

blocks to private entrepreneurs it has become

through CMPDI (which is the nodal agency for detailed coal exploration in the country

entrepreneurs to upgrade the resources for updating of the national inventory of coal & lignite. It may, therefore be made mandatory on the block allocates to provide data/GR on the resources explored by them before approval of Mining Plan.

Dual Mining Policy: It is necessary to formulate in association with concerned Ministries, of Coal/lignite blocks through Conventional mining, CBM/CMM Recovery, UCG etc.

Regulatory/legal framework and Policy guideline for concurrent Exploration/development

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CHAPTER- 9 MINING TECHNOLOGY 9 MINING TECHNOLOGY

Technology is the key to higher production, productivity and safety. Modernization in

technology has an overwhelming effect on the development of mines. A combination of conventional and modern technology to suit the indigenous condition and environment would give the best results. In India, currently around 90% of the coal is being produced through opencast method and about 10% through underground methods. 9.1 Opencast Technology

Enhancement in production soon after Nationalisation of coal mines matching the rapidly increasing demand for coal, particularly from the Power Sector was possible due to taking mining from the points of higher percentage of extraction of resources, higher rate of higher productivity, shorter gestation period, lesser specific capital investment, lower use pattern and related environmental and R&R issues. up large opencast mines. The opencast mining has several advantages over underground production from the available resources, extraction of thick seams at shallow cover, cost of production, better economies of scale, higher safety etc., but for change in land However, the limiting factors for the opencast technology are depth, stripping ratio, surface constraints including forest land, land for dumping etc. Some of the opencast coal mines in the country have reached to a depth of around 220m.

With other parameters being favorable, opencast mining can be planned upto a depth of

500m without any major constraints. Already mines like Bina-Kakri Amulgamation of about 400 m. Working at such depth, would require proper planning of transport

NCL/CIL, RG OC-II in SCCL, Kerendhari OC in NTPC have been planned for a depth of network, dumping strategy, designing and monitoring of pit slopes and OB dump profile. The out-bye transport of coal and OB may have to be done by in-pit crusher conveyor road transport at the same time ensuring sizing of coal. system instead of conventional shovel-dumper system to overcome the constraints of Extension of opencast for extracting dip side reserves beyond the economic stripping ratio should also be covered in the planning stage. Already lignite mines are being to coal mining is feasible as the OB strata are generally softer and do not require any stripping ratio of about 1:10. With the changing economic scenario and price of coal it production in a number of coalfields. 9.1.2 Present Opencast Technology planned for an average stripping ratio of 1:20 and above. The higher ratio as compared blasting. In coal also, projects like Ramagundam OC- II have been planned with a has become possible to strip open standing pillars in underground mines for augmenting

The prevailing mining technologies deployed in OC mines include: Shovel dumper combination

107

Shovel dumper/ dragline combination

Frontend Loader dumper combination

Dragline dozer combination for Overburden

Shovel dumper/in-pit crusher/ conveyor combination

Shovel-dumper /surface miner/rock breaker-tipper combination Bucket wheel excavator/ conveyor combination (for lignite mining)

The OC mines in India were mostly designed with the combination of 5 cum and 10 cum electric rope shovels with 35T/50T and 85T/120T dumpers. Later on 20 cum shovel in combination with 170 T dumpers were adopted in some large mines. Recently, in two of the largest mines in SECL 42 cum rope shovels with 240 T dumpers were introduced. Globally, the trend of introduction of higher capacity HEMM like 120 cum Draglines, 56/42 cum Rope Shovels, 34 cum Hyd. Shovels, 400/320/240 T Rear Dumpers, 850 HP Dozers, 20 cum Frontend Loaders is increasing. Indian coal industry would need to examine the scope for adoption of higher size HEMM.

With increasing haul distances, depth of operations, increasing volumes of OB and coal in-pit crushing and conveying technology using mobile/ semi-mobile crushers needs consideration in a big way as an alternative to dumper transport. 9.1.2.1 Application of Surface Miners and the growing need to conserve diesel, and improve environmental conditions in mines

In 1990s, Surface Miners were introduced in Indian coal mines for the first time in MCL. Since then it has become a major equipment for soft to medium hard coal extraction providing scope for avoiding drilling and blasting operations and crushing arrangements. of insitu coal. MCL, SECL and CCL are making extensive use of this technology.

With surface miners it is possible to mine in selective manner to avoid dilution of quality

Production contribution from surface miners in 2010-11 in CIL, from 46 (6 departmental + 40 outsourced) surface miners, was about 103 Mt which was 26 % of OC production and 24% total production. In SCCL one surface miner (outsourced) is operating which produced 3 Mt coal in 2010-11. 9.2

Next Generation Opencast Mines

For future resource use, environmental protection and land use, the next generation

opencast mines have to be planned considering deep opencast mining of 500 m depth

and beyond; extending and deepening existing opencast mines; planning of Super Pits/ pits; highwall mining to access exposed coal resources in final opencast batters/benches. 9.3 Underground (UG) Mining Technology

mega mines of 25-30 Mt per annum capacity and more; deep seam mining beneath super

The techno economic feasibility of a deposit dictates its mineability either through OC or UG method. Coal reserves occurring at depth are better suited for mining by UG method. UG production in the country has been declining steadily over past many decades mainly due to the need for quicker augmentation of production in line with rapidly increasing

108

demand which was possible through taking up large size OC projects with economies of scale. The UG technology, in most of the cases requires higher investment, long gestation strata control, fires, subsidence, gas problems etc. However, modern technologies infuse scale. 9.3.1 i) The underground mining technologies presently in vogue in India are as follows: Manual Bord & Pillar system period and higher cost of production with greater exposure to safety risks involving better confidence from safety, production and productivity angles with economies of

This had been the predominant technology till late 1990s and is being phased out through semi mechanization avoiding manual loading and exposure of miners in the coal face to the freshly exposed roof. All new mines are being planned with mechanized/semi mechanised operations. ii) Semi-mechanized Bord & Pillar System With SDLs / LHDs

SDL (Side Discharge Loader)/ LHD (Load Haul Dumper) as loading machines were introduced in underground mines replacing manual basket loading since early eighties. UDMs (Universal Drill Machines) were also introduced in conjunction with SDLs/LH Ds for the current level of 964 nos. to 1328 nos in the mines of CIL during the XII Plan. iii) Mechanized Bord & Pillar System With Continuous Miners

face blasting and roof bolting. The population of SDL/ LHD is envisaged to increase from

The system was initially introduced in Charcha mine of SECL and subsequently in Tandsi, of CIL and VK-7 incline of SCCL. At present 6 nos. of CMs are operating in CIL, 12 CMs SCCL presently two CMs are operating. iv) Mechanized Longwall (PSLW) Mining System

in WCL. Later on in NCPH, Jhanjra, Sarpi, Rani Atari and Kumbarkhani underground mines are in various stages of procurement and another 15 CMs are proposed during XII Plan. In

Mechanized Powered Support Longwall (PSLW) technology was introduced in India in 1978. Lack of success in longwall mining in the country earlier could be attributed to the geo-mining conditions especially unique roof behavior in Indian mines resulting into non compatibility of the imported roof support system. Presently, 2 mines of CIL, viz. longwall unit is in operation at GDK-10A colliery. The roof support design have Balrampur, SECL (2 sets), and Jhanjra, ECL (1 set) are operating PSLW. In SCCL, one undergone a considerable change over the years and the technology has become very potential for deep seated coal seams. The proposal for new PSLW units in the XII Plan is summarised below:

109

Sl. No. 1 2

Company ECL BCCL

Name of Mines (a) Jhanjra (a) Moonidih (a) Behrabandh North Extn. Block a) Adriyala b) Kakatiya

No. of sets 1 no. 2 nos.

Status Jhanjra Phase II for R-VI seam is under procurement (1.7 Mty capacity) PSLW package for XVI (Top) seam is XV seam is under planning/ tendering. High capacity longwall has

under procurement, whereas that for been

SECL

2 nos. 1 no. 1 no.

proposed at Behrabandh (Capacity- 2.5 Mty) in 2015-16. High capacity set for 2.81 Mty with schedule of production by 2012-13 schedule of production by 2014-15 High capacity set for 2.7 Mty with

5. 6.

SCCL

v)

Shortwall Mining Technology

basically a modified version of longwall technology with smaller length of face. Faster liquidation of pillars is possible with this method. vi) Thick Seam Mining

Shortwall mining is being currently practiced in the Balrampur colliery of SECL. It is

Following methods of thick seam mining are at present in use in Indian mines. o o o Cable bolting method; Mining in multiple lifts in ascending order with hydraulic sand stowing;

Blasting gallery method using remote controlled LHDs etc.

Longwall top coal caving (popularly known as LTCC)/ sublevel caving has been developed and adopted successfully in China in some mines having amenable coal characteristics with compatible set of equipments. The same technology has also been practiced in the mines of Australia, Suitability of application needs to be assessed before introduction of these technologies in India. vii) Steep Seam Mining

Jankowice method, Kazimierz Method (or Horizontal Slicing Method), and Kamora (Room) Method in conjunction with hydraulic sand stowing were tried in the mines of BCCL. Out of these methods, Jankowice method in conjunction with hydraulic sand stowing is still in Assam, various types of sub-level caving methods like Bhaska Method, Tipong Method, vogue. In weak strata conditions as are prevailing in the north-eastern coalfields (NEC) of Scraper-assisted Chamber Method, Flexible Roofing Method, Descending-Shield Method, production and percentage recovery.

Chamber Mining Method with cable bolting etc. were tried and discontinued due to lower

110

Appropriate Mining Technology for NEC/CIL for extraction of thick, steep and gassy collaboration. viii)

seams to achieve improved performance needs to be developed through R&D or foreign

Thin Seam Mining

In thin seams (thickness less than 1.5m), extra-low height Side Discharge Loaders (SDLs) are used in bord and pillar system of mining. This system can be further mechanized by using low height Continuous Miners. This system can be used even to mine ultra-thin to justify the investments involved. seams i.e. seams having thickness less than 1.2m, but the quality of coal should be good

Thin seams are also mined using longwall with plough as coal cutting machine in other countries. This being high capital intensive technology, is viable for better grades of coal only.

Another technology for extracting energy from thin seams is underground coal gasification, if it is techno-economically not feasible to mine by other methods. ix) Technologies for deep Mining (>500 meters)

The technology proposed for mining coal at greater depth should focus on some critical issues like: o o o Strata control problems like coal bumps/rock bursts & high

vertical/horizontal stresses,

Higher degree of gas emission,

Higher strata temperature and humidity (which may require air-cooling), etc.

ECL/ CIL is aiming to float global NITs to exploit the coal reserves at a depth of 700m or their old mines as a strategy to exploit available coal reserves. 9.4 Technology wise Coal Production

more with very difficult geo-mining conditions through joint venture route in some of

The technology wise trend in coal production during the XI five year plan is furnished below: (Figures in Mt)
Company / Technology COAL INDIA LIMITED Total Opencast Total Underground Conventional B&P Conventional LW Mechanised LW Mechanised B&P (SDL/ LHD) Continuous Miner Special Methods 317.59 43.32 11.62 30.20 0.07 335.91 43.54 10.24 31.94 0.07 359.76 43.96 8.79 32.92 0.05 388.01 43.25 6.81 34.48 0.18 0.78 0.05 391.31 40.01 5.33 32.09 0.05 0.53 1.33 0.68 402.00 45.00 4.33 35.83 0.05 0.92 2.86 1.01 06-07 Actual 07-08 Actual 08-09 Actual 09 - 10 Actual 10-11 Actual 11 - 12 Tar/BE

0.62 0.15

0.66

0.44 0.21

0.64

0.58 0.50

1.12

0.96

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Company / Technology COAL INDIA LIMITED CIL TOTAL SCCL Total Opencast Total Underground Conventional B&P Mechanised LW Scraper Mechanised B&P(SDL/ LHD) Continuous Miner Special Methods SCCL TOTAL

06-07 Actual 360.91 25.83 11.88 5.57 0.92 4.13 -

07-08 Actual 379.46 27.96 12.65 4.83 1.13 5.23 -

08-09 Actual 403.73 32.46 12.09 4.13 0.89 5.95

09 - 10 Actual 431.26 38.46 11.97 3.02 1.02 6.38

10-11 Actual 431.32 39.70 11.63 2.10 7.03 0.68 0.85 0.05 0.92 51.33

11 - 12 Tar/BE 447.00 38.50 12.50 1.47 7.73 1.00 0.80 1.50 51.00 0.00

0.03 -

0.43 0.09

1.25 37.71

1.46 40.60

1.09 44.54

1.03 50.43

The technology wise projection for coal production during XII Plan is given in the table below: XII plan, Coal Production, Mt 12-13 420.07 44.03 34.71 4.70 0.60 3.27 0.75 464.10 38.15 14.95 0.62 1.94 9.64 1.87 13-14 439.69 45.96 35.83 4.48 1.02 3.83 0.80 485.65 38.75 15.52 0.62 2.60 9.63 14-15 460.42 47.33 35.82 4.33 1.20 5.19 0.80 507.75 39.40 15.68 0.62 3.62 8.97 15-16 479.31 50.99 36.38 4.24 1.85 7.73 0.80 530.30 40.39 15.68 0.42 4.10 8.69 16-17 501.87 54.53 37.30 3.97 2.60 9.87 0.80 556.40* 41.08 15.98 0.42 4.30 8.69

Company / Technology CIL Total Opencast Total Underground Conventional B&P Mechanised LW Mechanised B&P (SDL/ LHD) Continuous Miner Special Methods CIL TOTAL SCCL Total Opencast Total Underground Conventional B&P Mechanised B&P (SDL/ LHD) Mechanised LW Continuous Miner Special Methods SCCL - TOTAL

0.88 53.10

1.37 54.27

1.30

1.57 0.90 55.08

0.90 56.07

1.57

0.90 57.06

1.67

* However in the optimistic scenario the projected coal production in 2016-17 is 615 Mt. Mechanisation in Lignite Mines - NLC The total lignite production from NLC is through mechanized opencast mining. The predominant technology is Bucket Wheel Excavator in mines in Tamilnadu (22.73 Mt in 2010-11), whereas in Barsingsar OC in Rajasthan, it is shovel dumper method without

112

blasting (0.41Mt in 2010-11). The Technology-wise production program for XII plan is given in the table:

NLC :Technology 12-13 Total Opencast Specialised Mining Equipment Excavator) (SME, Bucket Wheel Conventional Mining dumper) 9.5 24.23 26.02

XII plan, Lignite Production, Mt 201314 26.02 24.23 201415 26.02 24.23 2015-16 26.95 24.23 201617 31.20 25.50

Equipment (CME, shovel

1.79

1.79

1.79

2.72

5.70

Technology for Underground Coal Gasification (UCG)

In India, a large amount of coal exists beyond present techno-economically viable mining there is a huge occurrence of coal in India, which has not even brought into lignite resource inventory, but otherwise known in course of oil and gas exploration in the addition to known lignite deposits.

depth. Such coals have immense potential to yield energy through UCG. Additionally,

country. These lignite fields need proper exploration and may be taken up for UCG in UCG got impetus through notifying the activity as one of the end uses under the captive

mining policy for coal. This has enabled to consider allotment of identified coal blocks to potential entrepreneurs for developing UCG. Further, coal companies have also taken initiative in developing UCG in the blocks under their command area. CIL, SCCL and NLC Skochinsky Institute of Mining, Russia. NLCs R&D project for UCG did not take off due to

joined hands with ONGC for developing UCG and ONGC in turn has associated itself with non availability of technical consultants. Recently, CIL has taken initiative to develop two

Government has identified five lignite blocks and two coal blocks for UCG for offer under captive route. The development of UCG needs to be carried forward in the XII Plan in at least some four to five areas to establish the technology. 9.6

of its blocks namely Kaitha in Ramgarh coalfield of CCL and Tesghora-C block of WCL.

Technology for Extraction of CBM, CMM and AMM

Commercial exploitation of CBM has already been established in the country. Government exploitation of CMM from the working mines is yet to be developed on commercial lines.

has allotted 33 blocks to various companies in four rounds of bidding. However, A demonstration project implemented with the assistance of UNDP/ GEF in BCCL area has developed confidence in this regard. CIL has initiated action for extraction of CMM from CMM by coal lease holders need to be sorted out between MoC and MoPNG. five of its areas/ blocks but some technical issues in regard to commercial exploitation of

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Systematic assessment of AMM resources is yet to be done. Possibility of sizeable

resource of AMM generally exists in abandoned UG mines, which has history of high gas emission and where sand stowing has not been practiced earlier. Occurrence of such unextraction of AMM from abandoned mines needs to be explored. 9.7 Action for XII Plan stowed UG mines having large spatial extent is limited in number. The scope for

Opencast Mining i. ii. iii. iv. v. vi. vii. viii. Conservation of reserves: designing of large size pits and amalgamation of adjacent mines for extracting locked up coal in batters and barriers; measures; Scientific approach for designing pit slopes and dump slopes with appropriate monitoring Large scale adoption of in-pit crushing and conveying of coal and OB; Standardization of HEMM for various pit capacities; Integrating washeries with all new opencast mines; Land reclamation and mine closure plans with monitoring mechanism; Application of IT for fleet management, inventory, maintenance and safety In each subsidiary producing coal through OC operation, at least two high capacity OC mines are to be designed with state of the art technology, facilities of electronic monitoring, control system and facilities comparable to the best available in the world. Underground Mining ix. x. xi. xii. All new underground mines are to be planned with high degree of mechanization; technology, continuous mining technology etc. Large scale introduction of mass production technologies like longwall mining

Non mechanized existing mines to be quickly converted to mechanised mines through adoption of SDL/LHD/Continuous miners and mechanized drilling and roof bolting; mines are to be designed with state of the art technology, facilities of electronic monitoring, control system and facilities comparable to the best available in the world. Scientific strata and environment monitoring; Risk assessment and mitigation plans; drivages; high speed skips, conveyors etc. Faster development of infrastructure for UG mines- Mechanised shaft and incline In each subsidiary producing coal through UG operation, at least two high capacity UG

xiii. xiv. xv. xvi. xvii.

Introduction of man riding systems in UG mines; Adoption of telecommunications in underground mines;

114

xviii.

400m depth or where temperature cannot be brought down to 33 degree Celsius with conventional ventilation system; Creation of machinery manufacturing facilities to support underground mechanization.

Air-conditioning systems for mine ventilation, particularly the deep mines of more than

xix.

115

CHAPTER- 10 PRODUCTIVITY AND BENCH MARKING 10.0 INTRODUCTION

The increase in productivity aims at efficient and effective utilization of resources. Traditionally, the output per man shift measured in terms of tonnes in coal mines in India, Though the opencast mines have recorded a consistent increase in productivity

over the years, the underground OMS is hovering around 0.7 t. Targets for the productivity are mainly based on mechanization of workings and the system capacity utilization. In view of varied conditions in different coalfields in the country there is a need for benchmarking productivity of mining operations. below: Trend in productivity in coal mines during the last two years is furnished in the table Output per Man shift (OMS) OVERALL ECL 2006 - 07 2007 - 08 2008 - 09 2009 10 2010 11 2011-12 (Targ) 1.34 1.07 1.33 1.46 1.60 1.78 BCCL 1.15 1.18 1.22 1.85 2.09 2.19 CCL 2.81 3.22 3.27 3.66 3.88 4.46 NCL 10.94 13.81 14.58 13.19 13.52 17.43 WCL 2.50 2.52 2.55 2.64 2.65 2.15 SECL 4.53 4.83 5.26 5.96 6.47 6.19 MCL 15.93 16.19 16.60 14.66 15.37 15.68 (In Tonnes) NEC 1.70 1.88 1.77 2.00 2.16 2.07 CIL 3.54 3.79 4.09 4.47 4.73 4.92 SCCL 2.39 2.63 3.01 3.36 3.58 3.80

OPENCAST ECL 2006 - 07 2007 - 08 2008 - 09 2009 10 2010 11 2011-12 (Targ) 7.03 5.04 6.42 7.29 8.14 8.86 BCCL 3.07 3.08 2.91 4.85 5.64 6.19 CCL 4.03 4.66 4.65 5.24 5.45 6.38 NCL 10.94 13.81 14.58 13.19 13.52 17.43 WCL 4.07 4.06 3.99 4.12 4.13 3.99 SECL 13.38 14.30 15.76 18.89 20.22 19.00 MCL 23.48 23.57 23.06 18.89 20.50 21.56

(In Tonnes) NEC 7.42 8.09 7.83 7.10 7.15 7.16 CIL 8.00 8.60 8.95 9.51 10.06 10.73 SCCL 9.50 10.76 10.60 10.71 12.08 13.01

UNDERGROUND ECL 2006 - 07 2007 - 08 2008 - 09 2009 10 2010 11 2011-12 (T) 0.42 0.43 0.46 0.47 0.45 0.57 BCCL 0.44 0.42 0.41 0.39 0.39 0.47 CCL 0.40 0.39 0.36 0.35 0.34 0.45 NCL UG mine No WCL 1.09 1.11 1.14 1.12 1.09 1.05 SECL 1.14 1.19 1.26 1.33 1.32 1.38 MCL 1.16 1.18 1.25 1.29 1.25 1.28

(In Tonnes) NEC 0.23 0.20 0.10 0.004 CIL 0.71 0.73 0.76 0.78 0.77 0.84 SCCL 0.90 1.02 1.05 1.08 1.09 1.20

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The productivity projection for XII Plan period in mines of CIL & SCCL is given in the Table: Output per Man shift (OMS) OVERALL Year 2012 13 2013 14 2014 15 2015 16 2016 17 ECL 1.93 2.10 2.27 2.52 2.84 BCCL 2.90 3.10 3.50 3.80 4.20 CCL 4.87 5.94 7.13 8.20 9.56 NCL 17.70 18.20 18.70 19.20 19.50 WCL 2.57 2.62 2.61 2.63 2.61 SECL 6.92 7.22 7.53 7.90 8.33 MCL 15.58 15.35 15.39 15.69 16.06 (In Tonnes) NEC 1.72 2.42 2.56 2.90 3.25 CIL 5.40 5.80 6.20 6.60 7.00 SCCL 4.16 4.37 4.63 4.91 4.93

OPENCAST Year 2012 13 2013 14 2014 15 2015 16 2016 17 ECL 10.26 11.41 12.16 12.98 14.22 BCCL 7.00 7.20 7.40 7.60 7.80 CCL 6.95 8.60 10.34 11.95 13.68 NCL 17.70 18.20 18.70 19.20 19.50 WCL 4.03 4.09 4.10 4.10 4.12 SECL 23.23 24.07 25.16 26.37 28.13 MCL 20.80 20.26 20.47 20.83 21.02

(In Tonnes) NEC 1.72 2.42 2.56 2.90 3.25 CIL 11.20 11.90 12.60 13.30 14.00 SCCL 14.97 14.83 14.55 14.82 14.83

UNDERGROUND Year 2012 13 2013 14 2014 15 2015 16 2016 17 ECL 0.51 0.55 0.58 0.73 0.90 BCCL 0.80 0.85 0.90 0.95 1.10 CCL 0.41 0.49 0.56 0.67 0.86 NCL No UG Mine WCL 1.06 1.06 1.07 1.07 1.13 SECL 1.48 1.60 1.66 1.75 1.74 MCL 1.27 1.24 1.28 1.62 1.96

(In Tonnes) NEC CIL 0.90 0.95 1.00 1.05 1.10 SCCL 1.47 1.59 1.71 1.81 1.82

The trend and projection for lignite mines are given in the Table: Output per Man shift (OMS) in tonnes Company X Plan 200607 NLC 10.16 2007-08 10.18 2008-09 10.16 XI Plan 2009-10 10.77 10-11 11.00 11 12 Target 9.36

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Projections for XII Plan. Company 12-13 NLC 10.1 10.0 13-14 10.5 XII Plan 14-15 11.0 15-16 11.5 2016-17 12.0

Analyses of reasons for low productivity in coal mines generally point out that:

Lack of linking the various elements of coal production and transportation system into a continuous process at each mine and also across mines Lack of mechanization and automation in underground mines Lack of communication and coordination low productive time of men and machinery long shift change time high maintenance time high equipment repositioning time shortfall in materials logistics different equipments of different manufacturers creating problems of maintenance mismatch between excavating and transportation capacities lack of preparation and planning poor management practices and indiscipline lack of analytical approach to overcome the problems Different steps taken for improving productivity

10.2

Over the years coal companies have addressed the issue of low productivity and implemented some feasible solutions like hot seat exchange for HEMM operators, MARC contracts and Depot agreements with OEM companies for reducing down time of machinery and timely arrangement of spare parts, overlapping shifts in underground mines with longwall workings etc. New equipment procurement contracts are being devised along with maintenance contracts for ensuring proper availability of the equipment by the OEMs. 10.3

Benchmarking of Operations and Equipment Productivity

One of the important areas is benchmarking of operations and equipment productivity. The earlier exercises carried out in this regard by a committee of MoC have lead to bench marking of both UG and OC equipments which are furnished below. However, these need new technologies.

to be reviewed periodically for improvement in view of the investments being made in

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10.4

Productivity of UG Machinery Machine Productivity benchmark Type of machine/mining system Machine tpd/Mc SDL (Bucket capacity 1 m3) LHD (Bucket capacity 1.5m3) SDL (1m3 bucket) + UDM LHD (1.5 m3 bucket) + UDM PSLW system with 2 RHs CM (JOY 12CM 15 or equ.) CM in longwall development BG with 5 LHDs (Bucket capacity 2.7 m3) 120 150 135 170 4800* 1650 825 825 Mty 0.036 0.045 0.040 0.050 1.200 0.500 0.250 0.250 OMS (t) 1.30 1.50 1.60 2.00 5.00 5.00 5.00 4.00

No. 1 2 3 4 5 6 7 8

Sl.

SDL (Side Discharge Loader)/ LHD (Load Haul Dumper)

PSLW (Power Support Longwall) CM (Continuous Miner)

BG (Blasting Gallery)

* Considering 10 months operation and 2 months equipment salvaging/shifting period in a year

CIL Subsidiary-wise productivity during 2009-10 & 2010-11 Productivity (TPD/Machine), 2009-10 SDL ECL BCCL CCL SECL 65 66 70 102 LHD 124 42 101 210 (NCPH) 560 1089 (Balrampur) 98 CM (Jhanjra MIC) 1492 PSLW 86 (Jhanjra) Productivity (TPD/Machine), 2010-11 CM (Jhanjra MIC) 1388 SDL 57 74 75 90 LHD 107 44 95 186 (NCPH) (Tandsi ) 421 0 (Balramp ur) 806 PSLW (Jhanjra) 158

Subsidiary

WCL MCL CIL

100 67 85

157 146 169

(Tandsi)

91 60 77

154 191 163

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10.5

Productivity of HEMM

The benchmarking of the shovels-dumper and draglines under standard geo-mining conditions (considering 330 working days) is as follows:

Sl. No. A. Shovels 1 2 3 4 5 6 7 8

Basic Parameters

Benchmark Productivity (Mm3 per Excavator per annum)

20 m3 Electric rope shovel with 170 T rear dumpers 10 m3 Electric rope shovel with 120 T rear dumpers 10 m3 Electric rope shovel with 85 T rear dumpers 5 m3 Electric rope shovel with 50 T rear dumpers 5 m3 Electric rope shovel with 35 T rear dumpers 4.5 m3 Hydraulic Excavator with 50 T rear dumpers dumpers dumpers 3.8 - 4.2 m3 Hydraulic Excavator with 35 T rear 2.8 - 3.2 m3 Hydraulic Excavator with 35 T rear

4.09 2.08 1.98 0.98 0.95 1.11 0.95 0.72 1.19 1.04 0.76

B. Dragline 1 2 3 4 10/70 Dragline 20/90 Dragline 24/96 Dragline 30/88 Dragline 1.18 2.83 3.45 4.38

M/c

No. of Equipment
As on 1.4.2011 As on 1.4.2010 CMPDI Norms

Availability
% of Norms 201011 % of Norms 200910 CMPDI Norms

Utilisation
% of Normr 201011 % of Normr 200910

Dragline Shovel Dumper Dozer Drill

40 754 3217 981 709

40 747 3366 991 713

85 80 67 70 78

92 90 99 93 98

92 91 99 92 99

73 58 50 45 40

91 78 70 59 74

99 85 73 60 77

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10.6 10.7 i. ii. iii. iv. v. vi. vii. viii. ix. x. xi. xii. xiii.

Percentage Availability and Utilisation HEMMof vis--vis norms: Action for XII Plan for Improving Productivity Benchmarking of mining operations/ equipments Optimizing size and capacity of the mine Use of Man riding system in underground mines Use of mechanised drilling and roof bolting machines. Replacement of tub transport system by belt conveyors in underground mines mines. Advanced shaft sinking methods, provision of high capacity skips in underground

continuous miner, road headers etc.

Maximum use of Mass production underground technology like longwall, Bigger sizes of equipment in opencast mines.

maintenance and timely procurement of spares. corporate level

Cutting down the idle time and breakdown time of machinery by better

Correcting mismatch in excavation and transport equipment capacity, by action at Training of workers for new technology, machinery, and maintenance Better discipline at mines and increasing the working hours of men and machinery

Rope Shovels should be standardized to 3or 4 sizes, e.g. 10 cum, 20 cum, 42 cum. Similarly the dumpers should be standardized to 100 T, 190 T, 320/ 260 T. Introduction of OITDS for all big opencast mines. Rapid loading system for coal dispatch. Proper monitoring at every level Modern communication and reporting system

Standardization of equipment fleet at mine level as well as at company level. The

xiv. xv. xvi. xvii.

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CHAPTER- 11 PROJECT FORMULATION AND IMPLEMENTATION 11.1 Formulation of Coal Projects

Proper formulation of coal/ lignite projects is the most critical area to meet the growing

demand of coal in the country. Identification of adequate commercially exploitable coal deposits to support high level of production and building infrastructure for mining and transporting such large quantities of coal have to be meticulously pursued. The projected formulation, timely approval and implementation and monitoring. The planning cycle for coal production in each Five Year Plan should be initiated at least one Five Year Plan before. 11.1.1 Guidelines for Preparation and Approval of Project Reports The formulation of coal sector projects is basically governed by the guidelines issued by the Planning Commission in 1992. MOC has issued Guidelines on 4th April 2011for preparation of Mining Plans. Earlier a Committee to look in to improvement in the procedural aspects of approval of projects under Shri Govindarajan the then Secretary (Heavy Industries) made a number of recommendations including doing away with pre PIB meetings and In Principle approvals for coal sector projects and empowering the coal companies. Now the coal companies are empowered to decide on capital investments in projects and approval of the same. Projects costing above costing more than Mini Ratna Subsidiaries of CIL are empowered to approve projects upto 500 crores.

production targets can be achieved only by taking up well-planned exploration, project

over 500 crores, are forwarded to Govt. NLC being a Navratna company is empowered to approve all their mining and power projects by their Board. Project/ Feasibility reports are normally sanctioned in two Stages. The First Stage or Pre Feasibility Report is approved by the respective companys Board. The same is submitted along with Form-I for Environmental and Forestry Clearance. After obtaining relevant approvals, Stage- II or Final Report is approved by the competent authority. MoEF also has issued generic guidelines for preparation of Pre-feasibility Report. 11.1.2 Suggestive Measures for Improved Project Formulation

empowered to approve investment proposal costing upto

mandatory. ECL and BCCL can approve projects costing upto

150 crores, financial appraisal by independent financial agencies is 500 crores. Proposal costing 20 crores. SCCL is

500 crores are sanctioned by CIL Board. For approval of projects

The project formulation must address the following basics: 9 9 Fulfilling coal demand/Linkage; development

Taking advance action in respect of land acquisition and infrastructure

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9 9 9 9

Exploration/ Geology;

Geo-technical studies and investigations; Mining Method

Coal reserves/ Coal Quality/ Depth and extent of mining Formulating optimum strategy. Planning future expansion should the need arises Choosing right size of equipment Minimizing coal losses

Choosing sites for OB dumps, resettlement, afforestation and infrastructure. 9 9 9 9 9 9 9 9 9 9 9 o o o o 9 9 9 9 9 9 Mine Development Targets & Production Water Supply Outsourcing

Power supply, Maintenance and production support facilities

Coal washing Evacuation & Dispatch Manpower and training Infrastructure Planning Safety

Economic viability and evaluation

Up-dation of various technical and financial project parameters for estimating capital and operating expenditure; mining technology; Technical and financial optimization of the projects taking into account the type of Incremental viability analysis in case of capacity expansion/ modernization and technical up-gradation of projects etc.; Proper definition of construction and capacity built up periods;

Financing/ funding Access to Land R&R

Environment & Forestry Issues Implementation Schedule Reclamation & Closure

11.1.3 Advance Action Proposals (AAP) - Formulation and implementation of AAP should be a prerequisite especially for new projects. Availability of land for at least 10 years of operation is to be ensured before sanction of PR. Constructing access roads, arranging

power and water supply and site clearance activity are also to be implemented in advance. This practice was in vogue as long as the approval of projects by Government was important for all the companies to adopt the same. necessary. Now few of the coal companies are following this procedure and it is 11.1.4 Infrastructure Planning - Infrastructure layout should be so planned as it does not block any coal resource or cause hindrance to the exploitation of the same. mines of different mine operators. infrastructure should be in line with the Master Plan of the entire coalfield considering The

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11.1.5

loading of coal. Provision is to be made for sizing to (-) 100 mm size or (-) 50 mm and Auto Mechanical Sampling as the case may be. Preference may be given for in-pit crushing and conveying systems for opencast mines. 11.1.6 Rapid loading Arrangement with silos should be provided in mines for

All projects are to be planned with 100% crushing, sizing and mechanized

wagon loading of more than 4 Mtpa capacity mines. No. of existing & proposed Rapid Loading System in CIL is listed below: Sl.No. 1 2 3 4 5 6 7 11.1.7 Subsidiaries BCCL CCL ECL MCL SECL NCL WCL Total

Existing (nos.) Nil 1 2 2 4 11 Nil 20

Proposed (nos.) 2 10 5 17 12 3 Nil 49

Total (nos.) 2 11 7 19 16 14 Nil 69

should form an integral part of project formulation. Utilisation and disposal of rejects also needs to be addressed. 11.1.8 railway siding. 11.1.9 Transport net-work: Transportation net-work needs to be addressed while

Coal Beneficiation: Washing of non coking coal needs to be promoted and

formulating the mining projects. Each project should have connectivity with the nearest Economic viability - The financial parameters should be given due

consideration in the changed economic scenario. The guidelines issued by Planning

Commission and Ministry of Finance, should form the basis for economic and financial appraisal of the projects. The availability of resources and tying up of funds for timely execution of the project is of utmost importance. 11.1.10 Internal Rate of Return (IRR)- As per the guidelines of Planning

Commission and Dept. of Expenditure, Ministry of Finance

Economic IRR of 12% needs to be ensured for investment decision in the projects. production, capital investment, production target etc. should be done to assess risk involved in attaining desired IRR of the proposal. 11.1.11

a minimum Financial and

Sensitivity analysis considering the different risk variables like sale value, cost of

does not yield the desired IRR, the coal companies may consider taking up the projects consent of the linked consumers.

Projects on cost plus basis when the proposed investment in a project

on cost plus basis in order to fulfill the requirement of 12% IRR on investments with the

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11.1.12

Capitalization of coal mining projects

The guidelines of Ministry of Coal (Nov. 2004) in this regard are reproduced below: i) ii) The periods of construction and capacity build-up have to be clearly defined in project reports. The period of construction has to be defined to determine the commercial

readiness of the project to yield production on a sustainable basis. Most of the basic infrastructure facilities like CHP, railway siding, developmental activities, service buildings, water supply, power supply etc. required for implementing the project would need to be completed within the construction period. The capacity buildup period should be minimal after the construction period is over.

iii)

In case of opencast projects, the volume of stripping of overburden and in case of underground projects, the completion of required developmental activities during the above period of construction have to be clearly defined.

iv)

Based on the above, the capitalisation of revenue expenses/ opening of revenue

account will be decided. Revenue expenditure to be capitalised should be net of v) sales receipts of coal produced during the construction period. The initial capital of projects will be the investment till the year of achieving the

rated capacity of coal production and corresponding overburden removal in that year for opencast projects. However, in case of lignite projects the existing capitalisation of the project will continue. practice of limiting the sanction of initial capital cost till the commissioning/

report schedule with achievement of 85% of production capacity and completion of major infrastructure with 90% of capital investment envisaged. 11.2 Project Implementation

11.1.13

Project Completion: Project should be completed according to the project

There are 117 mining and 13 non mining projects of CIL costing Rs, 20 Cr. &above, 44 are delayed on account of various reasons as summarized below:

under different stages of implementation out of which 76 projects are on schedule and

Reasons for Delay Land Acquisition Adverse Misc Total Conditions Geo-mining

Mining Project 24 2 15 41

Non Mining Projects 1

2 3

Analysis of Cost and Time overruns in Coal Projects reveals the following: Delay in forestry clearance Delay in Environment clearance

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Delay in Land acquisition

Adverse Geo-mining conditions Law & Order problems etc.

Problems of rehabilitation of land oustees and Project Affected People (PAP)

Delay in Procurement of Equipment especially, HEMM Delay in construction of CHP Delay in construction of railway siding or evacuation network etc.

State Govt. can play a greater role for acquisition of land and help coal companies in settling the R&R issues. A uniform R&R Policy is desirable for all developmental projects in the country. Though there exists a National R&R Policy and CILs R&R Policy, most of them.

the state governments have their own policy and coal companies are invariably following The State Governments should identify land which is available for compensatory should be made available against payment to be made by project proponents. Value (NPV), afforestation charges etc.

afforestation. A Land Bank for compensatory afforestation should be created and land Responsibilities for acquisition of forest land may be restricted to payment of Net Present The law also provides for utilization of degraded forest land equivalent to twice the area may create a land bank and put the details on public domain for speedier processing of the mining projects involving forest land. In the absence of certificate from the state government, MoEF has recently considered afforestation in degraded forest areas by one of Member (Energy), Planning Commission has made certain recommendations in regard to easing out the procedural aspects of forest land acquisition/diversion. of forest land proposed to be diverted for compensatory afforestation. The State Govt.

of the PSUs. The committee constituted by a Group of Ministers under the Chairmanship The most

important thing for consideration of the Government is online application process for EC

and FC by MoEF which would help reducing procedural delays in acceptance of proposals. Once the online application is accepted, enclosure of any maps etc. may follow subsequently with the hard copy of the application. 11.2.1

taking investment decision especially for capital intensive UG technologies like longwall to eliminate any uncertainty later on. Sophisticated geological and geophysical, conditions. 11.2.2 exploration techniques need to be adopted for advance forecasting of the geo-mining Equipment Supply and turnkey Execution

Geo-mining constraints: Complete geo-investigation must be done, before

The contract management manuals of coal PSUs are quite old and need a thorough review transparent mechanism with IT based procurement systems to be evolved within next two years to cut delays in paper work and decision making. procurement by subsidiary companies should also be reviewed. transparency and management should be adopted.

in line with the current developments. Scope for subjectivity should be avoided. More Delegation of powers for

E- Procurement of goods and services in next one year in all coal companies for better

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11.2.3

Package Based Contract Management:

A package based contract management system should be devised by coal companies within two years for implementation in coal mining projects with a view to improve different departments and agencies. The different activities of a project like construction unit of the project and should be tendered, awarded, executed and monitored at appropriate level such that all the activities are completed in time. 11.2.4 Review of delegation of Power The coal companies should review the delegation of powers to subsidiary companies in companies. contract management, reduce delays and better co-ordination and monitoring among of workshop, CHP, Rly. Siding, power supply arrangement etc. should be considered as a

one year time at various levels below Board considering enhanced empowerment of coal

11.2.5 Law and Order Problems These are mainly related to R&R and land acquisition issues and local community

engagement. Coal Companies should work closely with the communities affected such companies should also work closely with the local authorities in resolving the issues. 11.2.6 Project Monitoring Organization: The system of monitoring at various levels has been standardized. o o overall responsibility of implementation of projects.

that the enduring value of coal mining is well appreciated by the local communities. Coal

The Director (Projects & Planning) of the coal company concerned is vested with

Project monitoring is done by the Project Officer on monthly or at shorter intervals level. at, the area level by GMs I CGMs and by Director (Projects) and CMD at corporate

o o o o o o o

Status of projects is also reviewed at every Company Board meeting. expenditure of the projects exceeds 50% of the sanctioned capital exception.

Mandatory review of the projects is carried out at the company level when the Projects, costing 100 crores & above, are also reviewed by CIL Board by Quarterly Review in the MOC level by Secretary is taken for major projects costing more than 500 crores and more than 3 Mtpa. Progress reports in respect of projects costing 100 crores & above are also

submitted to Department of Programme Implementation regularly.

Project wise PERT/CPM network (including resource base) for all activities using MS Project software is strongly recommended at area/GM/Company level. Project implementation group needs to be trained in project-oriented software like MS Project in one year time by all coal companies for better control and monitoring of the project, entailing timely completion of the project.

Web monitoring system has been established in many projects to monitor the

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status of ordering, engineering, supplies, erection and the physical progress of the site activities. Such systems have been of immense help in identifying the bottlenecks and should be adopted for all the projects. 11.2.7

of sustainable development into national legal frameworks, environmental factors are given equal stature alongside economic and other considerations in governmental decision-making. Also emphasized are measures to conserve landscapes, natural and resources, especially non-renewable ones. cultural heritage and biological diversity through prudent consumption of natural

Sustainable development - Increasingly, with the integration of principles

In this regard, preparation and implementation of approved Environment Management special attention while planning and implementing the projects. 11.3 Coal Projects Plans, reclamation, rehabilitation and final mine closure of the mined out areas need

In CIL, currently there are 257 (125 UG+ 132 OC) completed projects having total capacity of 247.77 Mty (52.23 Mty UG + 195.54 Mty OC) and 163 (58 UG+ 105 OC) ongoing projects having of 440.41 Mty (28.84 Mty UG + 411.57 Mty OC). The number of projects costing more than 500 cr. (all OC), in CIL is 15, out of which 4

nos. (27.5 Mty) have been completed and 11 nos. (146.5 Mty) are ongoing.

In SCCL, there are 111 (87 UG+ 24 OC) completed projects having total capacity of 54.31 Mty (23.56 Mty UG + 30.75 Mty OC), and 26 (9 UG+ 17 OC) ongoing projects having total capacity of 39.89 Mty (10.83 Mty UG + 29.06 Mty OC). The number of projects costing more than

these OC (4.75 Mty) projects have been completed and 1 UG (2.81 Mty) project is ongoing.

500 cr. in (2 OC +1 UG) in SCCL is 3. Out of

In NLC there are four open cast mining completed projects including expansion totaling 30.6 MTPA of mining capacity. 11.3.1 11.3.1.1 New Projects XI Plan Projects

CIL had identified 145 projects with an ultimate production capacity of 391.22 Mty in the XI plan period. Of these, 80 projects having ultimate sanctioned capacity of 195.78 Mty have been approved till July 2011 for a capital investment of 11293.27 Cr. and are in

various stages of implementation. Out of these, 37 projects contributed 80.11 Mt in 2010-11. In 2011-12, 42 projects are expected to contribute 88.71 Mt. 65 identified projects of XI Plan period having a total estimated capacity of 195.44 Mty are under formulation/approval.

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11.3.1.2

XII Plan Projects

In the XII Plan period production from Existing and Completed projects of CIL is expected to decline from 218.37 Mt in 2011-12, Terminal Year of XI Plan, to 192.42 Mt in 201612, to 300.18 Mt in 2016-17 (TY XII Plan), i.e. by 72.55 Mt. Another 62.8 Mt is expected 17. Production from Ongoing Projects is envisaged to increase from 227.63 Mt in 2011to come from new/expansion projects likely to be taken up during XII Plan. It is besides around 50 spill-over projects of XI Plan, yet to be approved/formulated. during XI Plan Period.

envisaged that around 70 new/expansion projects will be taken up by CIL in XII Plan In SCCL, 33 projects were envisaged for implementation with a capacity of 56.674 Mty

during the XI plan period and production started. 2 projects were approved but could not displaced families; for 2 projects,

Out of 33 Projects, 24 (36.72 Mty) Projects have been taken up

be grounded due to land diversion/acquisition and Rehabilitation and Resettlement of projects are likely to be commissioned during 2011-12; approved; and 1 project is proposed to be dropped. For XII Plan, nine new projects are proposed to be taken up. Group-wise, year-wise production plan of CIL & SCCL is given in Chapter-3. Lignite production Programme of NLC In the XII Plan period production from Existing and Completed projects of NLC is Feasibility Reports (FR) are under preparation; 2 FR of 2 projects have been

expected to increase from 26.02 Mt in 2011-12, Terminal Year of XIPlan, to 31.20 Mt in

2016-17.In NLC, four opencast mines having installed capacity of 30.6 MTPA are in

operation. It is expected that production from the proposed Devangudi mines at Tamil nadu will get added from the year 2015-16, production from the proposed Hadla & Palana mines at Rajastan state is expected from the year 2016-17 onwards. 11.6 i. Action Plan for XII Plan XII Plan projects by coal companies to be clearly worked out alongwith schedule Acquisition, Procurement of Machinery, Development of Infrastructure and start ii. iii. iv. of production etc. Preparation and monitoring of time schedules for Project report preparation for all

for obtaining EMP & Forestry clearances, approvals by competent authority, Land

Strict monitoring of project implementation using MS Project software as per Web based monitoring of project implementation in next one to two years. Devising package based contract management for implementation of coal mining projects for improved contract management and reduced time schedules in next one to two years. Review CIL contract management in next one year for improving up on the delays in procedural aspects with simplified approach. Introduction of E-procurement of goods & services in next one year in all coal companies for better transparency and efficient management. PERT/CPM techniques in next one year by all coal companies.

v. vi.

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vii. viii.

Reviewing delegation of powers at various levels as per the enhanced empowerment of coal companies in next one year. Online submission of application for EC and FC

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CHAPTER- 12 ENVIRONMENTAL MANAGEMENT, LAND ACQUISITION AND R & R 12 Environmental Management

Coal mining like any other industrial activity leaves its environment footprint on the society. The endeavor of the industry is to make coal mining environment friendly in the best possible way. The important legislation relating to environment protection are: The Environment (Protection) Act, 1986 The Environment (Protection) Rules, 1986 The Forest Conservation Act, 1980

The Indian Forest Act, 1927, Amendment 1984 The Wild Life (Protection) Act 1972, Amendment 2002

The Water (Prevention and Control of Pollution) Cess Act, 1977 in 1987

The Water (Prevention and Control of Pollution) Act, 1974

The Air (Prevention and Control of Pollution) Act, enacted in 1981 and amended

The Public Liability Insurance Act 1991 The Biological Diversity Act 2002 Forest Rights) Act, 2006 The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of

Besides, Mines Act, 1952 & The Factories Act, 1948 also provide for the health, safety and welfare of the workers employed in mines. 12.1

Prior Environment Clearance (EC) for Mining Projects

As per the Environmental Impact Assessment Notification of September 2006 of MoEF, that involving Expansion and Modernisation/ Change in lease area / change in capacity / change in product mix. The Clearance is accorded by the Regulatory Authority (RA) on the recommendation of Expert Advisory Committee (EAC), MOEF level or SEAC, State level.

prior Environmental Clearance (EC) is a must for all Mining Projects or activities including

Coal Mining Projects Involving more than 150 Ha. are categorised as Category-A for

consideration at MOEF (GOI) and those involving 5 to 150 Ha., are categorised as Category-B for consideration at the State level Environment Impact Assessment Authority (SEIAA) (in the absence of SEIAA, by MoEF). i. Form- 1 with Pre Feasibility Report. The clearance process involves 4 stages: The Initial application is to be submitted in

Screening: applicable only for Category- B projects for sub-categorization into B1, requiring Environment Impact Assessment (EIA) Report or B2, not requiring EIA Report (as per MOEF guidelines)

ii. iii.

Scoping: to give terms of reference (TOR), within 60 days of receiving Form- 1. Public Consultation: Complying TOR for Public Consultation to SPCB; Public Hearing (not required for Category.-B2 projects) is conducted by SPCB,

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district wise. Whole process including notice and forwarding of proceedings is to be completed within 45 days. Applicant makes necessary changes in EIA & EMP recommendations of Public Hearing. iv. Regulatory Authority (RA) who and submits Final EMP/EIA to Regulatory Authority enclosing the discussions and Appraisal: EAC/ SEAC give their recommendations on EMP within 60 days to Otherwise RA will refer it back to EAC/SEAC within 45 days, who gives back recommendations to RA within another 30 days which are final. 12.2 Delays in EC As per EIA notification 2006, the EMP clearance process should take maximum of 210 days but the general experience of coal companies is that it invariably involves some 1 to 2 years time. Coal companies have attributed this to: Delay in finalizing ToR Disproportionate details sought with applications Delay in conducting Public Hearing Delay in appraisal meetings Reopening of technical issues during various stages of appraisal the fact whether coal mining contribution is high or low. normally agrees with recommendations.

Imposition of generalised Temporary ban for a broad area irrespective of

12.3

Approval of Forestry Proposals

Forestry clearance is granted in 2 stages, Stage- I (in principle clearance) and after afforestation, etc., Stage- II clearance is accorded.

observing conditions imposed in St-1 clearance and payments for NPV, compensatory Project proponent submits details in prescribed proforma to the respective DFO/ Nodal Officer (Forest) of concerned State Govt. who forwards it to Conservator of Forest for formulation (Conservation) Act, 1980. The DFO surveys the relevant forest area required under the of forest proposal for processing of clearance under the Forest

possible alternatives. Forest authorities conduct a cost-benefit analysis to assess the loss of forest produce, loss to environment vis--vis benefits of project. Compensatory forest land is identified contiguous to or in the proximity of Forest. In respect of certain Afforestation (CA) scheme is prepared to compensate loss of vegetation. Equivalent nontypes of proposals, e.g. for Central Govt./ Central Govt. Undertaking, CA may be raised on degraded forest land twice in extent of forest area being diverted. The NPV rate varies from 5.8 to 9.2 lakh per hectare (as per MoEF Notification dt. 23.04.04) in case of

opencast projects and 50% of that for UG projects.

Regional Offices process cases up to 40 ha. than 100 ha of forest land.

Site inspection by Regional Offices mandatory for proposals involving more

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Specific time limit for States and Central Govt. for expeditious processing of proposals (90/60 days for State Governments for fresh/ renewal cases and 60 days for Central Government) as per the guidelines of MoEF. fresh proposals and 120 days for renewal cases.

No forest clearance was accorded in specified time limit of 150 days for

Forest Rights Act 2006 The project proponents are required to submit a no objection certificate from the Gramsabhas/ district authorities under the provisions of FRA 2006 wherever forest land diversion is involved. This process invariably causes delays mainly on account of noncalled for a number of times by the district authorities in order to comply with the obtaining NOC in time. 12.4 CEPI

fulfillment of quorum of Gramsabha meetings. As a result, the meetings need to be provisions of the Act. This needs to be looked into to cut down the delays and

MoEF through Central Pollution Control Board (CPCB) undertook a study of selected 88 MoEF dated 13/01/2010 (out of these 88 locations) 43 have been reported to be having

industrial clusters/ areas to identify polluted clusters/ areas. As per the notification of

Comprehensive Environmental Pollution Index (CEPI) score of more than 70. Seven areas cover the major coalfields namely Chandrapur, Korba, Talcher, Singrauli, Dhanbad, Ib Valley and Asansol. The moratorium imposed on the above areas is delaying the process of Environmental mining operations do not produce any of the toxins that have been considered as the

Clearance (EC) for coal mining projects and leading to production loss. In fact coal pollutants in this exercise. After obtaining the computation methodology for determining CEPI, case studies were made for many projects with the available existing environmental data. It was observed that the CEPI for coal projects ranges from 12 to 35, which is far below the adopted critical value of 70.

MoEF has lifted the moratorium from three coalfields namely Talcher, Ib and Singrauly till Dhanbad. 12.5

September 2011 and the same is yet to be lifted from Korba, Chandrapur, Asansol and

Recommendations to Speed up the EC & FC Clearance i. The process requires Re-engineering with specific provisions for coal mining. projects

ii. Standardising Terms of Reference to Opencast and Underground mining iii. The time taken by coal companies in generating base line data as per TOR iv. Reduce time delays in conducting Public hearing State authorities to appreciate the issue and cooperate can be cut short by taking advance action in collecting base line data.

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v. The recent sequential approval of EC after FC is a deterrent in the progress of coal projects and augmenting coal production. MoEF has now modified the circular to allow simultaneous processing of EC and FC cases. However, the modification will not be help if FC clearance continues to take 3 to 5 years. vi. MoC level review meetings with state governments to facilitate EC and FC

restriction of one year validity of EC continuous and therefore this

vii. EC for entire coalfield or cluster: Mines be grouped together on the basis of preparing cluster-wise EIA/EMP where mines of same owners are located in close proximity

unique environmental concerns, geographical separations for the purpose of

viii. Coal companies should commence preparation of coalfield/ region wise EIA/ EMP immediately and complete them within next three years. The required hydro geological studies, collection of seasonal data etc. concurrently. should be done

ix. The stand of MoEF to consider EC in case of expansion of mines up to 25% without deploying additional resources without the need for PH is not practical. Therefore, MoEF should be approached to relax the condition of x. MoEF to immediately adopt submission of online applications for EC and FC and maps if any can be submitted subsequently in hard copy by the proponent. non deployment of additional resources.

xi. MoEF to develop a system of uploading digitized forest maps on their Web applications.

site to facilitate coal companies for using the maps for EC and FC

xii. The forestry clearance (FC) should be streamlined such that FC is accorded within the stipulated 150 days, in place of the current average duration of 3xiii. The moratorium on extending EC on account of CEPI scores has been lifted in cleared. 5 years and more.

only three coalfield areas out of seven and the remaining also need to be

xiv. MOEF vide Notification dated 03.11.2009, in Para (8) (i) & (ii), has directed for mandatory use of 25% of fly ash on weight to weight basis in mine stowing, and 25% of fly ash on volume to volume basis in external OB dumps in OC mines under the guidance of DGMS may be taken up for study and reviewed by Ministry. 12.6 Mine closure &Land Reclamation

reclamation and mine closure have not been paid proper attention leading to environmental concerns. Ministry of Coal has issued a set of guidelines mandating all the mine operators to undertake reclamation for which approval of Mine Closure Plans by the 6 lakhs per hectare in case of opencast mine and

Over the years of implementation of coal mining projects it has been observed that mine

competent authority is mandatory. Further, mine operators have to deposit an amount of mine in an escrow account to be opened jointly with Coal Controller Organization. The 1 Lakh per hectare for underground

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amount from the Escrow Account will be released four years before the final Mine Closure depending on the acceptable reclamation of the mined out area. The following explains about the land reclamation process in opencast mines in detail. 12.7 Land reclamation in Opencast Mines

About 80% of coal production in India comes from opencast mines. By its very nature of the opencast mining, the land surface is disturbed during the course of mining. The reclamation of the Mined out area commences only after 3 to 4 years of the initial mining operations. Normally the percentage of external dumps does not exceed 20 to 30 percent but increases with the gradient of seam or the stripping ratios. The external dumps are normally permitted to a height of 90 meters. The height of the internal dump 30 meters is done to maintaining the stability of the slope. is normally permitted upto 90 meters above the original surface level. Sub-benching of Once the dumps get stabilized over a period of time, the biological reclamation of the same is undertaken. Plantation of trees is done in consultation with the local forest department. The species are also selected in consultation with forest department officials final void say 20% to 30% will be left out unfilled which remains as a water body.

with a view to regenerate local flora and fauna. At the end of mining operation certain Satellite Surveillance: In order to monitor the land reclamation work, CIL has introduced

operation in CIL out of which 50 major OCPs, are monitored every year. Other mines are being covered once in 3 years. Status of Land reclamation of CIL as on 31.03.2011 is as under:

Satellite Surveillance Programme for all its OC projects. Presently, 163 OC projects are in

Subsidiaries BCCL CCL ECL NCL MCL NEC SECL WCL Total *

Excavated(Ha) 2249.41 4755.69 3111.10 3064.26 3652.39 119.62 6397.07 5230.30 28579.84

Area

Area Backfilled (Technical (Ha) 462.07 1200.00 376.80 996.56 1397.03 21.07 3908.23 800.00 9161.76

Area backfilled (Biologically 230.77 996.71 215.80 701.56 714.47 19.80 2375.88 532.13 5787.12 Reclaimed (Ha)

Afforested Area* (Ha) 3094.00 4398.00 2649.00 4997.00 2178.00 159.00 8445.00 6375.00 32295.00

Total Area

technically reclaimed area shown above i.e. 5787.115 Ha), afforestation over external OB dumps, afforestation in plain land and avenue plantation.

The total afforested area includes area biologically reclaimed (on

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Details of land under possession and requirement during XII Plan Company CIL Particulars A. Total land under possession Forest land Land in Ha. NA

Tenancy land B. Additional Land SCCL

Other (pvt. land) requirement during XII Plan possession 23,276.12 5011.87 7783.03 10,481.22 7,845.20 13160.64 10597.46 2563.18

C. Total land under Forest land Tenancy land D. Additional Land Other (pvt. land) requirement during XII Plan

NLC

A. Total land under possession Forest land

land)

Tenancy land (pvt.

Other (Govt. land) 4666.13

B. Additional Land

requirement during XII Plan

12.8

Use of Fly ash for Land Reclamation

70% of the coal produced in India is consumed by the power sector generating large

quantities of fly ash. As per an estimate, a total 160 Mt of fly ash was produced during the year 2009-10 and presently 300 sq. km. of land is being occupied by ash ponds. Thus the fly ash poses a major environmental liability; but at the same time because of its mineralogy and chemistry, it also serves as a re-source material for large-volume applications, e.g. Mine back filling (Opencast and under ground Hydraulic stowing), reclamation of low lying areas, haul roads, road construction, brick manufacturing, agriculture etc.

stopping and roof supports in U/G mines, manufacturing of cement, road embankments,

12.8.1 Present Scenario of Fly Ash Utilization Environmental safe disposal of fly ash is a challenging task. MoEFs notification dated November 2009 stipulates that: No person or agency shall within fifty kilometers (by road) from coal or lignite

based thermal power plants, undertake or approve stowing of mine without using at least 25% of fly ash on weight to weight basis, of the total stowing materials used and this

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shall be done under the guidance of the Director General of Mines Safety (DGMS). based thermal power plants, undertake or approve without using at least 25% of fly ash No person or agency shall within fifty kilometers (by road) from coal or lignite

on volume to volume basis of the total materials used for external dump of overburden done under the guidance of the Director General of Mines Safety (DGMS). Against the production of 160 Mt, A total of 80 Mt as i.e. only 50% is presently being disposed. There are various areas of coal mining where fly ash could be utilized:. Open cast Mining operations

and same percentage in upper benches of back filling of opencast mines and this shall be

Fly ash is being used as a backfill material in some of the abandoned mines only after the

case to case basis study of the environmental impact, especially with respect to ground where this is practiced are South Balanda OC of MCL, Kathara OCP (Quarry no. 1), Sawang

water quality and air pollution during backfilling and transportation. Some of the mines OCP (Karmatia colliery), Kargali OCP (6 quarries), Bokaro OCP (6 quarries), Amlo Project (Bermo seam), Giddi C OCP (Quarry no. 4), Rajrappa OCP (4 quarries) of CCL and Damoda OC of BCCL. However, as recommended by MoEF, disposal of fly ash in the working OC mines is not practical mainly on account of safety issues. Basically the blasted OB material swells by little scope for accommodation of any external material. Where coal seams occur at a around 70% to 80% and occupies more space than the insitu material there by leaving

gradient, the available space for backfilling gets drastically reduced due to risk of sliding. and operation of small size trucks carrying fly ash in the same area cannot be permitted. Under Ground Mining operations

Moreover the large size OB dumpers i.e. 100T, 170T, 240T carry OB material to dumps

Studies conducted by Fly Ash Utilization Pogramme under Dept. of Science and

Technology, GOI, in association with CIMFR have demonstrated that fly ash can also be used as a stowing material to replace sand. The studies were conducted at Durgapur and GDK 6A of SCCL. However, arrangement of separation of fines below 53 size is a constraint. Rayatwari Colliery of WCL, Madhuban colliery of BCCL, PK-1 (Prakasham Khani) colliery

12.8.2 Generation and Utilization of Fly Ash in NLC NLC is engaged in lignite production as well as power generation. NLC is disposing the

dry fly ash to the Cement Manufacturing Companies (CMCs) and Brick Manufacturing Companies (BMCs). Presently 16 cement manufacturing companies and 54 brick stations in Tamilnadu. Some ash is also being backfilled in mines, used in roads, flyovers, embankments construction and NLCs Own ash based products (other than bricks). manufacturing companies are taking dry fly ash from NLCs operated thermal power

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12.8.3

e-auction

NLC introduced e-auction in TPS- I Expansion for sale of dry fly ash. Out of the allocation

to Cement Manufacturing Companies, (leaving 20% to Brick Manufacturing Companies), e-auction is being done for up to 50% of the quantity so far and will be progressively extended to all the Thermal Power Stations so that about 75% of the dry fly ash generated exclusively for brick manufacturing and own requirement. 12.8.4 i. Thrust by NLC in fly ash utilization: Use of flyash in civil constructions, brick manufacturing, road making, land reclamation, etc., is being promoted. Various R&D work has been undertaken for: railways etc. will be disposed off in this manner and the remaining quantity will be earmarked

ii. iii. iv. v.

NLC is in touch with PWD, district administration, national highways and For the mines backfilling purpose a suitable methodology is being finalized by engaging a consultant. NLC is in discussion with TNPCB for utilizing fly ash for sea reclamation for

NLC already entered into MOU with Tamil Nadu Agricultural University, Coimbatore for popularizing fly ash usage in agriculture as a state wide based pesticides application fly ash in agriculture crops/soil and for development of fly ash Development of high performance highways using fly ash composites

its proposed thermal power project (1000 MW) in Tuticorin, Tamil Nadu.

vii.

vi.

Feasibility study on Calcium reduction in ground water and blow down water of thermal power stations using Zeolite to synthesized from Lignite fly ash :

12.9

Master Plan of Jharia & Ranigaj Coalfields

the erstwhile mine owners over more than 200 years of operations in these coalfields of Jharia and Raniganj prior to Nationalisation. The population living in the old mining areas habitation. In-spite of the declaration of these areas unsafe by the local administration, has increased many times over the years though these areas became unsafe for the habitation increased unabated. The problem of subsidence and fire are being addressed by the Government from time to time. In this regard a High Level Committee was set up in December, 1996 under the Chairmanship of the then Secretary, Ministry of State Governments to deal with the problem in a comprehensive manner.

The problems of subsidence and fires are the result of unscientific mining carried out by

Coal with representatives from other Departments, Coal companies and the concerned Based on the recommendations of the Committee a Master Plan dealing with fire, subsidence, rehabilitation and diversion of surface infrastructure in Jharia and Raniganj Coalfields Limited (ECL) at an estimated investment of for Jharia Coalfield and coalfields within the leasehold of Bharat Coking Coal Limited (BCCL) and Eastern 2629.21 crore for Raniganj Coalfield) excluding

9657.61 crore ( 7028.40 crore

116.23 crore

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sanctioned earlier for various Schemes under Environmental Measures & Subsidence implementation in 10/12 years in two phases of five years each and in case of BCCL 2 years pre-implementation period. Salient features of the Master Plan for Jharia and Raniganj are given in Annexure- 12.1 to 12.4 respectively.

Control (EMSC) Schemes was approved by the Government in August 2009 for

For implementation of the Master Plan, Jharia Rehabilitation and Development Authority (JRDA) and Asansol Durgapur Development Authority (ADDA) have been notified as implementing agencies by the respective State Governments of Jharkhand and West Bengal. A High Powered Central Committee under the Chairmanship of Secretary (Coal)

with representatives from other Ministries/Departments, State Governments of Jharkhand the Master Plan. Demographic surveys and land acquisition by JRDA and ADDA are in progress.

& West Bengal and concerned coal companies, has been monitoring implementation of

12.10 Land Acquisition, Rehabilitation and Resettlement (R&R) Coal mining is a site-specific industrial activity and land is the primary input in coal communities. The issue of land acquisition has become very delicate and sensitive in

projects associated with displacement, resettlement and rehabilitation of affected recent times and warrants active involvement of mining companies, Government & nonuniform approach by different States throws further challenge to a company like CIL

Government organisations and representatives of the affected communities. Lack of whose operations are spread over in 8 States. Presence of multiple mine operators at the make the issue more complex.

same location both from private and public sectors with their own policies and strategies The issue needs to be addressed from the time of planning, during the execution and after closure of the mine. A uniform and balanced approach would enable the government and mining companies to work together with affected people to build and shared responsibilities for culture, religion, customs and values. 12.11 Existing R&R policies in India National Rehabilitation and Resettlement (R&R) Policy, 2007 Ministry of Rural Development, Government of India. R&R policies of various coal-producing states of India. R&R policy of CIL- modified in 2008 in consonance with the National R&R Policy, 2007, which is more liberal than National Policy While CIL has its own R&R policy, SCCL is following the R&R policy of the State Government of Andhra Pradesh. NLC is following National R&R policy while also considering Tamil Nadu Acquisition of Lands for Industrial Purposes Act 1997. Rates are settled under a tripartite agreement. For quickly settling the compensation for the

sustainable and prosperous communities with employment and business opportunities

acquired lands through Lok Adalat (Peoples Court) at the rates negotiated publicly before

the District Collector cum R&R Administrator and the Elected Representatives/Minister

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from the constituency, Land is mainly acquired under the Coal Bearing Areas (Acquisition & Development) Act, 1957 and in certain cases under the Land Acquisition Act, 1894. companies make proposals to the Ministry of Coal under the CBA (A&D) Act, 1957. Land is also purchased directly after negotiations with the land owners. Govt. coal Proposals are scrutinized in the Ministry and the Central Government acquires land by issuing notifications under sections 4(1) (for prospecting/exploration for coal), 7(1) land owners/State Government) and 9(1) (for acquisition of land by Central Government). company through an order under section 11(1). As per the provisions of this Act, the Lease for Coal comes automatically to the concerned Govt. Coal Company. getting physical possession of land poses some problems. (declaring Governments intention to acquire the land and calling objections from the

After acquiring the land, the rights and titles are transferred to the concerned coal However,

Proposals under the Land Acquisition Act, 1894 received from the coal companies are

verified in the Ministry who makes requests to the State Authority (the District Collector)

for acquisition of the land. Further action regarding issue of the relevant notifications etc. and transfer of land to the coal company is taken by the State Government. The proposals made by the coal companies for land acquisition are based on the project report for coal projects.

The salient features of the R&R policy being followed by Coal India Limited which contributes to about 85% of national coal production are as follows: is acquired will be entitled to: Besides receiving monetary compensation for the land acquired, persons from whom land 1. One employment for every two acres of land acquired Subject to suitability and availability of vacancies OR cash compensation in lieu of employment: 2. Persons whose homestead is acquired: In addition to the above, resettlement benefits towards compensation of homestead land of the land losers are as under: (a) (b) Alternative house site measuring 100 sq. meter per family with all necessary basic infrastructure assistance of Each affected family that is displaced shall get a one-time financial belongings and cattle. (c) (d) 10,000 for shifting of the family, building materials,

Each affected family that is displaced and has cattle, shall get financial assistance of 15,000 for construction of cattle shed etc. Each affected person, who is a rural artisan, small trader or self-employed person and who has been displaced shall get a one-time financial assistance of 25,000 for construction of working shed or shop.

(e) OR

Each affected family will get subsistence allowance of 25 days Minimum Agriculture Wages (MAW) per month for one year;

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(f) (g) (h) 3.

Each affected family will be offered one-time lump sum payment of 1,00,000 in lieu of all benefits given in 3(a) to (e). Tribal affected family will be given one-time financial assistance of 500

days of MAW for loss of customary right or usages of forest produce. higher rehabilitation and resettlement benefit.

Tribal affected families resettled out of the district shall be given 25%

dependent on forest produce: the subsidiary companies assist PAP to establish non-farm cooperatives or jobs with contractors. Contractors are persuaded to give jobs to eligible PAPs on preferential basis, where feasible. 12.12 Challenges in Land Acquisition The acquisition problems are basically linked to R&R issues are non-availability of valid title documents, demand for higher compensation over and above that prescribed in the land acquisition rules, resistance to shifting to rehabilitation site even after receiving full compensation amount. In absence of a specific National law prohibiting, purchase of land, settlement of population and construction activity in prospective mining area or coalfield, land mafia and vested interests also come into picture taking advantage of considerable time lag by the mining company.

Sharecroppers, land lessees, tenants, day labourers, landless tribals, tribal

self-employment through the provision of infrastructure, petty contracts or formation of

since the coal is first proved and a mine is projectised; and land is taken into possession

12.13 Strategies for Land Acquisition i. Acquisition and physical possession of land - Securing the active cooperation of State governments in the critical role of supporting land acquisition, possession, R&R. ii. Resettlement of people displaced by coal mining operations arriving is no scope for direct employment, with due regard for religious and cultural values agreement on compensation for affected communities, especially where there

iii. Effective engagement with communities - Achieving sustainable social and reaching long-term economic independence from the mining company iv. Overcoming negative perceptions of coal mining operations v. Addressing trauma related to home and livelihood displacement of affected people vi. Management and resolution of conflicts with communities affected by operations including lack of transparency

economic development through forward and backward linkages, including

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vii. Sustainable and enduring local value of mining benefits during and after after operations are over 12.14 Monitoring For carrying out the above functions effectively, formation of the following set-up is suggested: and State Governments for expediting land acquisition and securing environment and forest clearances. It will be headed by Special Secretary / Additional Secretary (Coal) and will meet once in four months. Co-Ordination-Cum-Monitoring Committee/ Taskforce under The Inter-Ministerial Committee with the representations from key Ministries closure, including environmental considerations and appropriate land use

Chairmanship of the Chief Secretary of the state concerned with the representatives from Ministry of Coal, concerned coal companies, district authorities, elected representatives of local area and

the

representatives. The purpose of the task force would be to address all issues related to the acquisition and physical possession of land as well as R&R. The High-level Task Force to meet at least once in every three months. -

community

District Collector with representatives of the concerned coal company, other district representatives and local police authorities. Meetings to be held every month. High-Level Task Force, ensuring implementation and reporting back on progress. authorities, elected representatives of local area, community

District Level Committee in coalfield areas under the Chairmanship of the

The purpose of the Committee would be to follow up decisions made by the

Company-Level Committee under the Chairmanship of the Director of the concerned company project representatives, local representatives and relevant Committee would be to formulate proposals for the project area, seek approvals and ensure that a suitable course of action is taken. NGOs. Meetings to be held monthly. The purpose of the Company-Level

12.15

Govt. has recently introduced two new bills: one pertaining to sharing of 26% of profits with the PAPs and land acquisition bill with a proposal for enhanced would need to review their strategy for land acquisition and related matters. compensation to the land loosers. If these come through the coal companies

12.16

Recommendations i. takes an excessive amount of time to complete. The specified time period The process for securing approvals of land acquisition is cumbersome and

between different Sections, especially Sections 4 to 7 and 11 of CBA is ways to reduce the time period required.

commonly three years. This process should be reviewed in order to find

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ii.

deputation

State Government officers, Forest officials should be engaged on to coal companies to expedite land acquisition

iii.

compensation arrangements.

and

This leads to delays in processing acquisition of land and disputes over records supported through survey of land is essential. land.

Often, land records with State Authorities are inaccurate or incomplete.

ownership and size of land plots. Updating and computerisation of land iv. v. vi. Govt. should make suitable legislation to stop construction on coal bearing

plus premium.

Value of land is negotiated with landowners on the basis of market value The needs of communities and project-affected people are taken into

account in consultation with the affected persons in devising and funding R&R activities. Schemes should be formulated and implemented at regular intervals for Coal companies should take possession of the entire area of land required

vii. viii.

the sustainable economic development of affected communities.

for the life of the project at one go. However, the existing provision of extending employment needs to be replaced with some innovative methods providing for regular monthly income to the land losers over the possession, whichever is more beneficial. life of the project or for a period of thirty years from date of physical

ix.

strengthened to take responsibility for improving land acquisition processes, led by suitable senior staff.

The existing company-level units for land acquisition and R&R should be

x.

xi. xii. xiii.

retrieval and sharing of information to be achieved. reclamation. Focused approach on reducing land

policy, ensuring that resources are allocated to enable improved storage, degradation and

Information technology and systems should be given higher priority in

improved

Government should monitor closure process to ensure standards are met.

Funds set aside for mine closure, which is released according to progress.

mine closure activities and strengthen them with experts/ professional manpower in next one year. activities. Returning land to state government or others after cessation of mining CBA Act need to be amended to facilitate returning of reclaimed mined out Coal companies to immediately declare the areas in mines where Future use of land is to be planned to enable economic development,

Coal companies should establish a separate cell to land reclamation and

xiv. xv. xvi. xvii.

land by coal companies.

backfilling /stowing can be made using flyash.

agriculture, housing, industrial use, recreational amenities, forestry, fisheries, water storage etc.

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xviii.

are being managed as agreed and that complaints receive appropriate implemented in all coal companies.

An effective monitoring mechanism will be used to ensure that activities

responses. Third party / external monitoring of mined out area to be xix. Government to devise schemes for economic benefit to the community.

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CHAPTER-13 CLEAN COAL TECHNOLOGIES 13.1 The technologies employed and being developed to meet coals environmental

challenges collectively referred to as Clean Coal Technologies (CCTs). Broadly CCTs include washing of coal, Coal Gasification, Coal Bed Methane/Coal Mine Methane extraction, Underground Coal Gasification, Coal Liquefaction or Coal to Liquids (CTL), coal conversion technologies like Integrated Gas Combined Cycle (IGCC) for power generation, Carbon Capture and Storage (CCS), etc. Government has laid thrust on clean coal technologies to mitigate adverse impact of coal usage on environment.

13.2

Coal Beneficiation/washing:

The main drivers of promotion of CCTs are environmental stipulations as well as 34% ash content at thermal power stations located far away from pit heads and load

economic benefits. Following the MOEFs directive restricting use of coal of not more than

centres and critically polluted areas, usage of washed coal has assumed significance. This has also contributed to improvement in economics of operations of such power stations. The washed coal supplies increased from a level of 17 million tonnes in the beginning of

the Tenth Plan to about 36 million tonnes by the end of the XI Plan. The requirement of washed coal for thermal power generation is projected to be around 250 million tonnes by the end of the Eleventh Plan. However, the capacities did not grow as desired. The present capacity of thermal coal washeries of about 96 million tonnes is envisaged to increase to 175 million tonnes by the end of the XII Plan, including CIL and private sector. Details are furnished in Chapter-7 on coal quality & Beneficiation. 13.3 Coal Bed Methane (CBM) & Coal Mine Methane (CMM)

Methane gas is an inherent component of coal which is associated with it in adsorption form. Methane in coal seams poses safety problems while mining coal, particularly through underground method. It is therefore important to extract the associated methane gas from coal before mining of coal, which would provide additional source of energy and reduce emission of potential green house gas in to atmosphere and improve

safety of mining operations. Extraction of methane from virgin coal seams is known as Coal Bed Methane (CBM) and that from working mines is known as Coal Mine Methane (CMM).

Development of Coal Bed Methane/Coal Mine Methane was given fillip through a policy of Government of India in 1997 as per which Ministry of Coal (MoC) and Ministry of Petroleum &Natural Gas (MoP&NG) are working together and government has offered 33 Raniganj coalfield has commenced commercial production in 2007 and two blocks are in MoP&NG is the regulator for CBM activities in the country.

blocks in four rounds of bidding for CBM covering 17416 sq. km of area. One block in advance stage of commencing production. Director General of Hydrocarbons under

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CBM/CMM clearance house has been established in CMPDIL, Ranchi in collaboration with United States Environment Protection Agency (USEPA) which will provide information for development of CBM/CMM in India. Coal Mine Methane (CMM) One demonstration project of CMM through underground boreholes in BCCL has been this project is producing 500KW of power and is being supplied to BCCL colony. implemented in association with UNDP/GEF. CBM obtained through vertical bore well in CMPDI has formulated a tender document after prolonged due diligence with the industry for commercial exploitation of CMM in 5 areas viz. Moonidih, Putki Balihari & Mohuda Block in of BCCL and Ashnapani-Jaranghdi block, North kithara-I,II & III and Uchitdih blocks in CCL, where coal seams have been extensively worked out in the upper horizons tenders are yet to be finalised. 13.4 Coal gasification: and lower horizons are virgin which can be targeted for CMM exploitation. However the

Surface gasification of coal is a method of converting coal in to gas in gasifiers by

reacting the raw material at high temperatures with controlled amount of oxygen or steam for production of syn gas for various industrial purposes. Gasification is a more efficient way of using fossil fuel than directly burning the same. Now more advanced and Many by-products like ethanol, methanol, DME etc. and the gas produced is used as feedstock for manufacturing urea, Ammonium Nitrate etc.

highly efficient gasification technologies are available for application in the industries.

Some of the earlier coal gasification plants of fertiliser industry were closed down for economical considerations. However, some of the sponge iron plants are planning for technology is available for application. 13.5 surface gasification route. Now more advanced and highly efficient gasification

Underground Coal Gasification (UCG):

UCG has the potential to exploit the coal resources regarded as either uneconomic to work by conventional underground coal extraction or in accessible due to depth, geology or other mining and safety considerations.

Underground Coal Gasification is a method of converting un worked coal into a

combustible gas which can be used for industrial heating, power generation or the manufacture of hydrogen, synthetic natural gas or diesel fuel. The main gasses produced are carbon dioxide, methane, hydrogen and carbon monoxide. minimal greenhouse gas emissions. processed to remove its CO2 content thereby providing a source of clean energy with The gas can be

The feasibility of UCG has been examined in many countries and a few have undertaken field trials mostly in shallow depths. In Australia some major studies have been carried out on UCG at Chinchila project where gas generated was used for power generation.

146

However, some recent work in Europe has focused on exploitation of UCG in deep coal demonstrated in field trials in Belgium and Spain. Currently, UCG operations on

seams using guided drilling techniques. The technical feasibility of UCG at depth was commercial scale are reported from Angren of Uzbekistan & Mazuba of South Africa.

Gasification of coal including surface gasification and UCG has been notified as one of the end uses under captive mining policy for allocation of coal blocks to potential blocks and two coal blocks have been identified for offer. entrepreneurs. Govt. has also issued guidelines for conducting UCG and five lignite

Coal India Ltd. and NLC have entered into an MOU with ONGC for development of UCG.

ONGC in turn has entered into an MOU with Scochinsky Institute of Mining, Russia for UCG technology. GIPCL in association with ONGC has proposed to takeup UCG at the Vastan lignite block in Gujarat.

CIL has floated tenders for developing UCG projects in two of the blocks in their finalised.

command areas viz. Kaitha in CCL and Tesgora in WCL. The tenders are yet to be

There are significant reserves of coal at greater depths encountered during the course of oil drilling and these can not be conventionally mined. Such areas should be targeted to develop UCG projects either through PSUs or through JVs or through PPPs. 13.6 Coal Liquefaction or Coal to Liquids (CTL):

It is basically a technology/process to convert coal into liquid fuel. of carbon or addition of hydrogen, either directly or indirectly.

The liquid fuels

produced through this process are suitable for transportation application by the removal

In direct coal liquefaction coal is converted to liquid fuel in a single process with catalytic liquid.

hydrogenation. In indirect coal liquefaction coal is first gasified and then converted to

In this way coal can act as a substitute for crude oil. However, the cost effectiveness of market economy, it needs to compete.

coal liquefaction depends to a large extant on the world oil price with which in an open

Germany produced substantial amounts of coal derived fuels during the 2nd World War and South Africa due to embargos during the period 1950 to 1980 and is continuing reportedly producing about 160,000 barrels per day or 7.8 million tonnes per annum of product fuels and chemicals. large scale production of liquid fuels today. The Secunda plant of SASOL, South Africa, is

Government has notified CTL as one of the end uses under captive mining policy and allotted two coal blocks in Talcher coalfields of MCL, one each to M/s Strategic Energy Technology Systems Ltd. (SETL) and M/s Jindal Steel & Power Ltd. (JSPL). The names of the

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coal blocks allotted are North of Arkhapal-Srirampur Block to M/s SETL and Ramchandi

to M/s JSPL. These projects are planned to produce some 80000 barrels of diesel per day by 2017-18. 13.7

in addition to other products and generation of power and are likely to be commissioned

with in the power sector. These technologies are envisaged to improve the overall levels are also envisaged to reduce with adoption of these technologies.

The clean coal technologies related to combustion of coal are mainly being dealt

efficiency levels of power plants and reduce emissions of CO2. Specific coal consumption

As compared to pulverised coal (PC) burning technology being adopted widely the fluidised bed combustion (FBC) techniques, super critical and ultra supercritical technologies and integrated gas combined cycle (IGCC) techniques are expected to

provide for higher efficiency by burning available carbon in the coal and reduce specific coal consumption per unit of electricity generated and thus the gas emissions.

An Integrated Gasification Combined Cycle, or IGCC, is a power plant using synthesis gas. This gas is often used to power a gas turbine whose waste heat is passed to a steam turbine system (Combined cycle gas turbine). An Integrated Gasification Combined Cycle,

or IGCC, is a technology that turns coal into gas - synthesis gas (syngas). It then removes sulfur dioxide, particulates and mercury. It also results in improved efficiency compared to conventional pulverized coal.

impurities from the coal gas before it is combusted. This results in lower emissions of

IGCC along with Carbon Capture and Storage (CCS) is expected to minimise the CO2 emissions and provide clean power. However, the technology is still under research stage CCS related activities. and needs to be proved for commercial scales. Ministry of Power is the nodal agency for

Power sector is pursuing the energy efficiency improvement programmes through renovation and modernisation schemes and adoption of super critical technologies. NTPC have also taken up 100 MW IGCC Plant at Vijayawada in AP. However, the progress in this regard is not clear. IGCC using Indian coals is of importance to the industry as the earlier implemented IGCC Plants worldwide either used better quality coal compared to Indian coals or pet-coke. in association with BHEL is planning for a 100 MW IGCC pilot plant. AP Genco and BHEL

Ultra Super Critical Technologies - Conventional coal-fired power plants, which make water boil to generate steam that activates a turbine, have low efficiency. Supercritical (SC) and ultra-supercritical (USC) power plants operate at temperatures and pressures liquid and gas phases of water coexist in equilibrium, at which point there is no

above the critical point of water, i.e. above the temperature and pressure at which the difference between water gas and liquid water. This results in higher efficiencies. Supercritical (SC) and ultra -supercritical (USC) power plants require less coal per

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megawatt-hour, leading to lower emissions (including carbon dioxide and mercury), higher efficiency and lower fuel costs per megawatt. 13.8

fuel power plants and other heavily emitting installations such as steelworks and cement factories. The process consists of three stages capturing the carbon; transporting it by pipeline or ship; and storing it in suitable geological formations. While there are

Carbon Capture & Storage or CCS involves reducing carbon emissions from fossil

challenges in transporting and storing CO2, they are relatively straightforward. Capture is

the most complex and expensive stage, accounting for about 80% of the cost of CCS. can be used for coal, oil or gas, and indeed for biofuels) into a mixture of hydrogen and CO2 and then separates the CO2, leaving the hydrogen to be used as a clean CO2-free

There are three options: Pre-combustion capture converts the fossil fuel (the technology

fuel. Oxyfuel capture burns the fossil fuel in pure oxygen rather than air. This raises the

combustion temperature and produces CO2 and steam. The CO2 can be trapped by condensing the steam. Post-combustion capture removes CO2 from the exhaust gases using Solvent.

Ministry of Coal is closely working with different forums (bilateral as well as multilateral) working group for promoting clean coal technologies. Action points for XII Plan CIL should take up at least two to three CMM projects in their command area in next two years CIL should take up at least one UCG project in next one year policy in line with CBM policy on urgent basis gasification

viz. Indo-US coal working group, Indo-EU coal working group and India-Japan coal

13.9

Government should consider giving Phillip to UCG by means developing a Government should consider allotting some coal blocks for surface coal Coal beneficiation needs to be developed covering washing of all coals by the end of XII Plan

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CHAPTER- 14 AUTOMATION & APPLICATION OF INFORMATION TECHNOLOGY 14.0 INTRODUCTION

Automation is the key to high productivity, production and safety. The information

revolution of the country is gradually getting into mining industry and has a significant impact on mine operations. Information Technology (IT) is cited frequently as one of the most important tools for improving productivity and decision making. 14.1 14.2 Technology /Products for Automation Advanced Control Systems Wireless Sensor Networks Remote/ Intelligent I/Os Display Systems Supervisory Control & Data Acquisition System (SCADA)

Sensor & Sensor Networks, Warning Systems Enterprise Resource Planning (ERP)/ Supply Chain Management Software Management Information System

Typical Applications of Technology On line Coal Analysis coal mines Real time monitoring of mine environment for prevention of fire in underground Robotic applications in difficult/hazardous areas of work Disaster Management System using real time data Geographical Information System for controlling movement of HEMM/Coal trucks mines

Intelligent Transportation System Solutions for transport vehicles used in coal Safety of personnel Information flow Water level in underground mines, Lab analysis of quality of coal, Storage, transportation, order booking etc.

Some of the areas where automation/IT has been applied in coal sector are as follows: i. ii. Real time Trip counting system at Open cast mines with latest technologies like GPS, GIS, GSM, RFID, Wi-Fi Proximity Warning system for HEMM at Opencast mines

iii.

Truck movement monitoring system at weighbridges and coal handling plants mines with latest technologies like GPS, GIS, GSM, RFID, Wi-Fi Online Underground air and gas monitoring systems (CH4, CO, Temp.) miners entering the unsafe areas

iv.

v.

UG communication system and Miners tracking with Warning system for the

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viii.

vii. ix.

vi.

Web based Mine management system

Computerization of Exploration department activities in central server architecture Slope Stability Radar monitoring tool to manage mining risk Surveillance systems at sand stowing bunkers and for conveyor belt analysis

x.

Mains power failure alarm with auto SMS alert at important locations like mines, ventilation fans Blast Information Management System for storing, managing and retrieving drill and blast related information including Explosive Consumption & Costing (Pattern Analyser Software)

xi.

4.3

Application of IT

Enterprise Resource Planning (ERP) An SAP-ERP system in coal mines in the country has been introduced by SCCL w.e.f. July 2008 covering the business processes related to Purchase & Stores, Marketing & Dispatches, Quality Management, Human Capital management, Finance & Accounts and

Costing.. CIL is also considering integration of its operations through implementation of ERP systems. Now it is planned to enlarge scope by implementing all the functionalities available in SAP and which are relevant. EAS (Enterprise Asset management) viz. Plant Maintenance

Project System for monitoring of all resources of all major projects blending etc RoR

IS Mining Solution related to Transport management, remote logistics, Ore Enlarge the HCM scope by implementing Career planning, Training, recruitment, Production module for production system transactions

Provide a portal based interface for B2B transactions,E2E transactions, B2G Real Estate Management for tracking all real estate assets procurements etc. Customers

e-Procurement system viz. PPS module for facilitating on-line bidding for CRM (Customer Relationship Management) for providing a portal interface to all Business Objects for self design of reports & dash boards Simplify UI (User Interface) with 3rd party tools

Technical management of SAP system Open Text / Data Archiving solution for archiving data Volume testing. MDM (Master Data Management) tool for Master Data Maintenance & purification.

TDMS (Test data management Server) to create test scenarios for sound testing &

Server virtualisation & cloud computing

Mining equipment will increasingly be fitted with Global positioning systems, sensors and

information-processing capabilities to control and manage operations. As advanced

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equipment becomes more widespread, communications and data networks will enable

site together. Ultimately, these networks will supply data to a central control where it will be layered in to provide a range of services and support functions, such as mine planning and equipment-maintenance solutions. CILs ERP Project As recommended by IT Consultant M/s. Deloitte, Coal India Limited decided to adopt a new IT policy, since the existing IT set up was found to be inadequate to cater to the business needs due to its fragmented nature. It was recommended that CIL should go for off the shelf Enterprise Resource Planning (ERP) system to cater to their business needs covering its data, voice and video requirements.

mine-wide process integration and control capabilities to tie more operations at the mine

The new project comprised of major four areas of operation viz network infrastructure upto project level; procurement of SAP license and its implementation; data centre establishment; and all related services and post warranty maintenance. The duration of the project is envisaged to be three years with one year warranty services and two years post warranty maintenance. However, the tenders are yet to be finalised. 4.4 Thrust Area in XII Five Year Plan Coal Sector

Technology in XII Five-year plan: i.

Following thrust areas have been identified for Automation & Application of Information Infrastructure upto Colliery / Project Level: Top Down approach of is to be adopted Hqs. and to be extended to area level. Use of Local Area Network (LAN), providing

for various business functions including IT infrastructure is to be laid at subsidiary Nodes of area serving at various points (including weigh bridges, workshops etc)

and wide Area Network (WAN) for connectivity with area servers. It is proposed to provide Internet Technology in each colliery/projects.

This system will provide information about outside industry through browsers like new technology of mining, mining equipments and their technical details, price of worldwide along with e-mail facilities. Coal Production It is important that as we introduce bigger sizes of equipment, auxiliary facilities facility, automatic tyre handlers etc should be planned matching with HEMM. iii. iv. like workshop also automated. Mechanised/ automatic dumper/dozer washing product, cost of production, government polices and other information etc. ii.

GPS Based Truck Dispatch System: CIL has introduced the system in some of large OC mines. The system should be introduced in all opencast mines in next one year. automation. The mobile workshop van with modern and sophisticated equipment should be introduced to attend the maintenance requirement at the face. Automation in workshop: Dumper washing chamber should be introduced with full

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v. vi. vii.

practices in other countries can reduce idle time.

In underground mines, man riding system, or travel of persons through belts as Online Weighment and Sampling System: At all railway sidings and dispatch points, online weighment and sampling system should be introduced. Sophisticated Surveying Equipment: Target less total station surveying instrument, terrestrial laser scanner should be introduced in mines. Pit and dump slopes should be monitored with slope monitoring radar to get the indication of failure beforehand.

viii.

Sophisticated/modern blasting accessories: The modern/ sophisticated blasting system including accessories should be used at the mines. Modern vibration meter should be used in case of opencast mine using large quantity of explosive to monitor the vibration level nearby the built-up area.

ix.

Integrated Application Software: The Software should be implemented in CIL, subsidiary Hqs. and all the areas of Coal India. This would introduce Uniform data Software is to be enhanced / enriched by providing support through standard ERP and file structures, enhancement in Management Information System (MIS) etc. This solution so that it could function as Decision Support System for the organization. the system from respective areas through redundant data communication system.

The implementation of the software at mine / project level should be extension of x. Planning Software: Software MINEX, AUTOCAD etc. are being used for planning

purposes. They should also be introduced at all projects. All old Feasibility Reports, Mining Plans and other reports should be digitized and stored in electronic form.

xi. xii.

Project Monitoring Software: For monitoring of project activities software like, MS Project should be used. Geographic Information System (GIS): Mapping, spatial concepts, and time/space operations technology is absolutely essential to effective mining. GIS technologies create efficiency and productivity opportunities in all aspects of mineral exploration and mining. GIS enables a mineral exploration geologist and mine operator to mine intelligently, efficiently, competitively, safely, and in an environmentally compatible manner. GIS can be introduced in the areas of Mine Planning, Mine Management, Social and Environmental Management. This will provide storage of all mine maps in digitized format making updation of the map easier, easy location/access of various installations and its shifting, Social Impact Assessment at Coal Mines like villages, General guidance on Environmental monitoring etc. It is proposed to introduce GIS Centre in each area of the subsidiary companies. Resettlement and Rehabilitation, Provision of basic infrastructure in resettlement

xiii.

Integrated Safety, Production & Environment Monitoring and Control in Under It has been used for Voice communication only. A computerized system in mines to provide monitoring of Safe level of Hazardous Gases, Water level in Sump and Health Monitoring of UG equipments, monitoring of SDL/LHD, Long Wall and

Ground Mines: So far IT application has not been introduced in Underground mines.

Pumping System, running of Idle Conveyors, level of Coal Stock in the bunker,

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Continuous miners etc. are required to be introduced in these thrust areas so as to monitor and control these aspects of safety and production, from the pit head. xiv. Companies on Coal India Domain with a uniform user name identification. All the subsidiary companies will be able to utilize the Mail Server for external as well as internal Mail. xv.

No. Designation is issued to employees of Coal India and subsidiary companies. It is suggested to provide multipurpose Electronic Digital Card (Smart Card) to each employee with Biometric Identification. It will contain information such as Employee

Employee Biometric System: As on date Identity Card with photo, Name, Employee

Personnel Details, Contribution towards Social Security, Salary Earnings and Deductions, Leave Details, Health Information etc. The card will be updated on regular basis and will be utilized for Attendance Recording, Personal Identification, Settlement etc. For this Card Reader/ Biometric Sensors should be installed at CIL, subsidiary Hqs., Area, Projects/Collieries etc. xvi. E-Governance: CIL has taken initiative towards e-governance by way Availing Medical Facility, Settlement of Terminal Dues, identification for CMPF

implementing sales and marketing through e-auction, corporate e-banking (in towards better and transparent customer/vendor relationship. The areas to be

of

some of the subsidiaries), e-tendering etc. it is proposed to enhance the activity covered are introduction of e-banking for all payments, e-procurement, e-auction storage and quick retrieval of information / data. 14.5 Network Initiative

for Rail and Road Sales, Introduction of Document Management System for proper

The broad scope of work for the implementation of IT, network infrastructure in XII Five

Year Plan would involve setting up of Data Centers and interconnection between the data centres through VPN WAN Connectivity from two different ISPs, wireless network in the last mile, establishment/upgradation of LAN at all the locations, security for the entire and Enterprise Management System(EMS) and Network Management System(NMS). network, VPN connectivity from external world, anti-virus, anti-spam, patch management The CIL network would be based on established standards, state-of-art technologies, and suitable topology with the flexibility to expand and upgrade to cover CIL and its subsidiary companies as per the table given below. All existing and future applications, communication and IT infrastructure would run across the same network. The CIL network will be a scalable and high capacity network to carry data, voice and video traffic between different offices and location of CIL and its subsidiary companies. The same network will also be a single point Internet gateway at CIL for all network nodes/office under CIL and its subsidiary companies. 100% connectivity of all offices and mines round the clock across CIL is a primary requisite 14.6 The Knowledge Hub

The need for an IT based Knowledge Hub in Coal India would be addressed which would

help to connect, collaborate, learn and innovate. The Knowledge Hub would be an online

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knowledge network for professionals in Coal India, cutting across geographical barriers. It would enable people from all parts of the company to work together and share prosperity. experiences. This sharing and learning would improve services and bring in intellectual Knowledge Hub would take information from everywhere inside the system and many places throughout the web, and enrich people in things that they are engaged and interested in. An openly-accessible online public library kind of system would contain good practice understanding and intelligence on common subjects.

material recommended by peers. Common Knowledge would bring together shared The Knowledge Hub will also facilitate data transparency, through its facilities for publishing open data and providing common tools for accessing data. CMPDI being the host the Knowledge Hub. 14.7 planning and design hub, and an appropriate centre for e-knowledge aggregation, would Information Technology at Neyveli Lignite Corporation NLC is consistently and steadily involved in the computerization of various activities 14.7.1 IT Projects Implemented During XI Plan Period 1) OLIMMS: (Online Integrated Materials Management System) integration with payroll processing CCTV Video Surveillance System: 2) Implementation of Biometric based Attendance Management System and 3)

4) NLC campus LAN and WAN establishment: System

5) Computerisation of Disposal Management System and Lignite Auctioning 6) Centralised Project Monitoring System (CPMS): Survey functions of the Mines three Mines

7) Computerisation of Mine planning, Geological, Hydrological operations and 8) 9) Mining Equipment Management System (MEMMS) implementation in all

10) 14.7.2. 2) 3) 4) 5) 6) 7) 1)

11)

Computerisation in Thermal Power Plants

Implementation of Cyber Security measures NLC GH - Teleconsulting system with super specialty Hospitals

NLC IT Plans For Twelfth Plan Period Centralised Database implementation with DC-DR IT infrastructure formation Implementation of IPV addressing scheme Drug Accounting System in NLC GH End-to-end computerization of Corporate Contract Management System(CPMS).

Performance Related Payment System (PRP) and

Performance Appraisal System - PAR,

Implementation of Online Performance Management System

155

8) 9)

Re-engineering and restructuring of Payroll Personnel Accounting, Financial Accounting, PF Accounting Systems by workflow process and control tools

Productivity Plants and the Organization.

10) Implementation of Equipment Maintenance Management System for all Units 11) Centralized Project Management System 12) Implementation infrastructure against Cyber Threats : of Cyber Security Measures and strengthening the IT

13) Digital Access Library for all SME and CME equipments Drawing Management 14) E-Governance Activities 15) Computerisation of Legal Management System

16) Employee Records Document Management System 14.8

17) Retrofitting of Integrated Voice and Data Communication Network (IVDFN) Action for XII Plan for Improving Automation & IT Application The followings need to be implemented: i. iii. ii. GPS Based Truck Despatch System in next one year Automation in workshop Man riding system in underground mines Online Weighment and Sampling System Sophisticated Surveying Equipment Integrated Application Software

iv.

viii.

vii.

vi.

v.

Sophisticated/modern Blasting Accessories Planning Software like MINEX, AUTOCAD etc. Geographic Information System (GIS) Mines Integrated Safety, Production & Environment Monitoring and Control in UG Employee Biometric System

ix.

x.

xi.

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CHAPTER- 15 RESEARCH & DEVELOPMENT 15 15.1 RESEARCH & DEVELOPMENT Soon after Nationalization of the coal industry in mid 1970s, the three pronged

approach for Research and Development in coal, viz. Coal S&T Programme under the Standing Scientific Research Committee (SSRC) under Ministry of Coal, in house Research and Development Programmes of coal companies and InterSectoral Science Technology Advisory Committee (IS-STAC) has been adopted during different Five Year Plans. R&D in coal is carried out under four major heads environment and ecology. namely production, productivity and safety; coal beneficiation; coal utilisation; and The major thrust areas identified for R&D in the XI Plan were mapping of underground old unapproachable abandoned workings, coal gasification, dry liquefaction, Coal Bed Metahne (CBM)/ Abandoned Mine Methane(AMM), beneficiation of non-coking coal, beneficiation of low volatile coking coals, coal Development of effective communication system in case of miners trapped in underground mine etc.

15.2

Some of the major projects completed o Cable bolting for extraction of coal from standing pillars in thick coal seams. o Rock Mass Rating (RMR) for underground roof support design. mines. o Demonstration of extraction of CBM and its utilization in one of the BCCL o Ground Penetration Radar (GPR) for detection of unapproachable old o Controlled blasting in opencast mines near surface structure o Development of different types of steel props/chocks. o Beneficiation of non-coking coal for power generation. difficult to wash coal. waterlogged mine workings to avoid inundation.

o Oil agglomeration for beneficiation of the fine coal and beneficiation of o Coal agglomerates for low rank, low grade, slack coal for domestic use. o Humic acid from lignite for use as fertilizer. o Use of fly ash as fertilizers.

o Bio-restoration of mined out opencast areas through microbial technology. o Leaching effects of fly ash as mine fill in underground and abandoned open o Shortwall mining in SECL mines. cast mines.

o Rapid volumetric analysis of excavated in-situ overburden in opencast mine o Development of prototype powered support underground mines by use of Airborne Laser Terrain Mapper (ALTM,) Terrestrial Laser Scanner

o Development of accurate and rapid method of co-relation survey of

157

o Characterization of rock and parameters for optimal explosion energy o Application of high pressure water injection for hard roof management of o Development of nano-tubes / nano-fibers for advance detection of methane o Robotic application in underground mines to detect trapped miners. few are suitable for sponge iron industry. at room temperature. Churcha West, Colliery, SECL utilization in opencast blasting

o Through an R&D study, it has been established that almost all coals except

15.3 (1)

Major On-going Research Projects Development of CMPDI capacity for delineation of viable coal mine methane (CMM) having partly de-streesed coal in virgin coal seams

/ abandoned mine methane (AMM) blocks in the existing & would be mining area

(3)

(2)

Development of immediate roof fall prediction system in underground mines Demonstration of Cost-effective Technology for Dry Beneficiation of Coal by Allair Demonstration of Coal Dry Beneficiation System using Radiometric Technique CIL areas Jig using wireless network

Recovery & utilization of coal methane in Jharia and Raniganj Coalfields

(4) (5)

(6) (7) (8)

Assessment of prospect of shale gas in Gondwana basin with special reference to Development of indigenous Catalyst through pilot scale studies of coal to (CTL) conversion technology opencast mines liquid

High resolution seismic monitoring for early delectation and slope failures in Application of Ground Penetrating Radar (GPR)

(9)

(10) Integrated communication system to and locate trapped miners in underground (11) Development of self advancing (mobile) goaf edge supports (SAGES)for depillaring operations in underground coal mines Status of XI Plan Projects (a) Present status of Research projects Sl. No. 1 2 3 Projects expected Details Projects completed by June 2011 to be completed by 31.03.2012 Projects likely to be spilled over to XII Plan Total 14 29 Nos. 8 7 15.4 mines

158

(b) Expenditure during X and XI Plan period: Particulars X Projects completed BE ( in crores) RE ( in crores) Total crores) fund utilized ( in 51 81.08 52.81 51.42 Plan XI 31.03.11 38 62.54 43.86 44.67 Upto Anticipated 45 73.16 54.48 55.29

(c) XII Plan projection: Particulars Spill over projects from XI Plan New projects -Lignite -Coal No. of projects 14 25 5 Anticipated Provision ( in crores) 28.0 40.0 12.0 80.00

Total anticipated provision for XII Plan ( in crores) 15.5 (1) (2) (3) (4) (5) (6) (7) (8) (9) Future Research Projects

Effective method to extract coal standing on pillars below infrastructure / Safe parting between underground and opencast workings for simultaneous Design and development of procedure to assess safe barrier width for advancing Development of online remote field analysis and monitoring system for (a) optimal Introduction of water jet cutting technology in coal mines for seams on fire blast design (b) fragmentation measurement and (c) fly rock risk assessment benches in opencast mines mining developed area without stowing.

CBM reserves estimation for Indian Coalfields

On-line washability analysis by using CT system

To produce 10% or less ash clean coal from washery slime To study the caving behaviour of roof rock due to presence of OB dump on the hard cover for safe caving of roof rock.

surface /quarry floor and suggest suitable support design as well as minimum

(10) Fugitive Emissions of methane gas from opencast mines.

(11) Early warning system for roof fall prediction in underground mines

(12) Early warning system for predicting dump and highwall failures in opencast mines (13) High concentration fly ash slurry stowing in underground coal mines. (14) Shale gas estimation in coalfields

(15) Development of technology for remote operations in underground coal mines

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(16) Improvement of suitable mining methods for extraction of thick / and steep coal (17) Demonstration Plant zero reagent based Multi Gravity Separator. (18) Simultaneous blasting of OB and Coal of non(19) Development of various flocculants and washing chemicals for use in beneficiation (20) Highwall Mining seams.

(21) Method of Mining for multi-seam working. areas.

(22) Development of predictive models to determine the progress of fire in mine fire (23) Effect of depletion of water table due to UG and OC mining. (24) Formulation of guidelines for Opencast mines 15.6

determining optimal depth of residual void in

Emerging areas for coal Research: A. In-situ coal gasification. B. Liquefaction of coal. C. Coal Bed Methane(CBM)/ Coal Mine Methane (CMM) / Abandoned Mine D. Shale gas estimation & its recovery E. 3D seismic survey Methane (AMM) reserves estimation& recovery

F. Study of structure of coal seam and roof rocks in hydro-fracturing areas. 15.7 Research & Development at NLC NLC is carrying out R&D Projects in the field of Lignite Utilization, Value added

product from lignite, Waste Utilization, Waste Land Reclamation, Prevention of corrosion on mining equipments etc. For implementing these projects, NLC is collaborating / associating with various Central & State agencies like IITs, Research, Central Electrochemical Research Institute etc. Universities, National Institute of Technology, Central Institute of Mining and Fuel

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15.8 Sr 1

Details of Some of Major Completed Projects in the XI Plan Name of Project Development of a process for the production of activated

No

Implementing Agency NLC &

Time

Schedule Nov-2003 to Mar2007 April

Rs in Lakhs

Status

carbon from Neyveli Lignite. (CU RRL Trivandrum 49) 2 Transforming NLC Mine spoil into Productive agricultural land through Eco-friendly Integrated Farming System 3 Pilot stabilization, re-vegetation and Spoil. 4 5 Plant studies on the NLC & TNAU/ Coimbatore NLC & TNAU/ Coimbatore

98.60

Complet ed

2004 to March 2008. April 2004 to March 2008 2008 to 2010 2008 to 2012

449.48

Complet ed

restoration of Ecology in Mine

139.05

Complet ed

Corrosion

Studies

in

SME

structures of Mine-II Organic petrology, geochemical and mineralogy studies on Neyveli lignite 6 Corrosion studies in SWC

NLC/CECRI

2.92

Complet ed To be

NLC

22.41

complete d by 2012 To be

pumps of Mines

NLC/ NIT, Trichy

2008 to 2012

97.50

complete d by 2012 Spill over to XIIPlan

Development protection of

of

customized mining NLC/CECRI 2011 to 2014 79.48

Organic Coatings for corrosion special equipments at lignite Mines. 15.9 Proposed Projects for XII Plan Sl. .

No 1

Name of the Project Evaluation of Coal Bed

Implementing Agency

Duration

Cost in

Project

Lakhs

Remarks. It is proposed to develop

Methane in lignite zones by advanced geophysical methods

NLC/ IIT, Madras

4 years

100

suitable methodology by field investigation using advanced GPRS.

161

Development of suitable geophysical technique and for detection of

embedded hard NLC/ IIT, Madras

It

that

has

strata / marcasite in Mines area

mapping

creating 4 Years 80

hard

been

mining operations. Field investigation advanced equipment with for geophysical

problem

bands

identified are in

developing methodology to identify hard band. 3 Design and development of technology for effective cast mines 4 CO2 Biological/ Sequestration Bioby haul roads inside open NLC/ Hyderabad IIT, The 3 Years 100 study aims to

improve the life of the haul roads with some additives. Thermal Power Stations species Main for which of CO2 emission by the

Engineering Methods

NIT, Trichy

NLC/

3 years

450

will be absorbed by algal project is proposed. the

Removal of moisture from thermal power plant flue gas

Other partner identified. to be

NLC/

project is to develop and 3 Years 105 design suitable

objective

the

condenser to recover the water vapour. methodology It is proposed to evolve

Development of suitable

methodology for detection structures area in shallow

and mapping of buried depth in advancing Mines

NLC/ IIT, Madras

2 Years

30

the buried structure by indirect methods

to

locate

economic

15.11 Action for XII Plan - Recommendations In order to have wider involvement of institution in Coal R&D it is suggested that : ii. iii. iv. i. Coal companies should invest at least 1% of their PBT in R&D every year Coal companies should plan for improvement & strengthening of S&T deptt. R&D needs to be mainly based on subsidiary wise analysis of operations Invitation of expression of interest by open advertisement in national and international news papers and related journals for seeking appropriate To encourage private sector participation in R&D work proposals.

vii.

vi.

v.

To involve reputed overseas institutions for R&D

Encourage research scholars/ academicians/ coal sector employees pursuing Ph.D. in the emerging/ innovative areas of mining and other related activities by granting financial assistance

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CHAPTER 16 SAFETY & WELFARE 16 SAFETY

Safety of miners and operations is of paramount importance in coal mining operations

and enhancement of production. Coal mining operations are governed by the Mines Act, 1952 and the rules and regulations framed there under in regard to safety and health of the persons employed in mines. The Mines Rules, 1955, The Coal Mines Regulations, 1957, The Mines Rescue Rules, 1985 are some of the major statutes framed under the & Employment is the regulatory authority to enforce the statutes relating to mine safety. Mines Act. The Directorate General of Mines Safety (DGMS), under the Ministry of Labour There is a Standing Committee on Safety in Coal Mines, chaired by Minister in Charge of Coal. The meeting organized in this regard is attended by officers from Ministry of Coal, Ministry of Labour & Employment, DGMS, representatives of Trade Unions, Coal Corporations. The Committee meets biannually to take stock of the safety situation in field of safety. 16.1

companies (All PSUs & Private companies), State Mines & Mineral Development coal and lignite mines and suggests measures for bringing further improvement in the

Accidents in Indian Coalmines Table 1: Accident Statistics in Indian Coal Mines since 1991 Year 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Fatal Accidents accidents 138 165 156 156 137 131 143 128 127 117 105 81 83 87 96 78 76 No. of Fatality 143 183 176 241 219 146 165 146 138 144 141 97 113 96 117 137 78 FR/1000 persons 0.26 0.33 0.32 0.46 0.43 0.29 0.33 0.3 0.29 0.31 0.32 0.23 0.27 0.24 0.29 0.36 0.21 No. of 803 810 854 717 757 677 677 523 595 661 667 629 563 962 1106 861 923 Serious Accidents accidents Serious injury 821 834 881 735 790 703 703 542 629 679 706 665 590 991 1138 891 951 No. of SR/1000 persons 1.54 1.62 1.65 1.48 1.58 1.43 1.44 1.14 1.37 1.54 1.64 1.57 1.47 2.45 2.85 2.31 2.51

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Year 2008 2009 2010

Fatal Accidents No. of accidents 80 82 100 Fatality 93 92 120 FR/1000 persons 0.25 0.25 0.25 No. of 686 625 420

Serious Accidents No. of 709 647 449 SR/1000 persons 1.87 1.71 1.18 accidents Serious injury

The main cause of the accidents have been fall of roof and sides, accidents in rope underground mines and accidents due to movement of dumpers and other machinery in opencast mines.

haulage and conveyor system, fall of persons/objects, inundation, gas explosion etc. in

General observation of mine accidents reveal that Obsolete equipment; Lack of motivation; and Shortage of investment in modern safety equipment have been some of the reasons.

management skills & training; Illiteracy of workforce; Absence of a safety culture; Poor

Safety Monitoring The management of the mines is responsible for strict compliance of the prescribed safety standards in mines. While the coal companies take all care in observing safety levels mainly through Internal Safety Organisations. The Workmen legislation, they have also a stringent safety monitoring mechanism at corporate and local Inspectors are also deployed in each mine as per the statutory

requirement and periodic reviews are held at colliery level, area level and corporate level

involving workers representatives and management. Over and above, the regulatory authority the Directorate General of Mines Safety regularly undertakes safety inspection of the mines to enforce compliance of safety legislation. In addition to compliance with the requirements of mine safety laws, Coal companies are taking the following actions to reduce number of accidents:

Scientific roof support systems based on rock-mass-rating

Increased use of steel supports and roof bolts in place of timber supports

Avoiding exposure of workers to hazardous conditions by mechanisation of loading operations in underground mines through deployment of side discharge loaders (SDLs) and load haul dumpers (LHDs) etc. and replacing rope haulages with conveyor belts wherever feasible

Introduction of continuous miner technology and long wall technology in underground mines where ever feasible Regular monitoring of mine environment for detecting inflammable and noxious gases using modern equipments like digital Multi-Gas Detectors etc. every monsoon preventive measures against inundation are

Before

implemented through:

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9 9 9 9

Emergency plan for keeping vigil on situations Check co-relation survey to establish

Strengthening pumping arrangements

Filling up the surface cracks

waterlogged workings wherever danger of inundation exists

the

barriers

between

Implementation of Code of Practices for Heavy Earth Moving Machinery operators, maintenance staff & others Thrust on training & retraining of supervisors and workmen including contractors workers to increase safety awareness Workers participation in safety management Regular safety audit of mines and risk assessment (ISO)

Safety monitoring through multi-disciplinary Internal Safety Organisation

Further, the following mechanisms have been framed to monitor safety in coal mines: 1. Workmens Inspectors: Safety status of each and every mine is monitored by

representatives of the workmen, one each in Mining, Electrical and Mechanical disciplines through inspections the reports of which and status of compliance of recommendations are forwarded to the local DGMS office.

2. Safety Committee at mine level: The Safety Committee also monitors the safety of the mine. In this body two workmen are represented equally as management. workmens representatives, DGMS representatives and

status at each mine by inspection followed by a meeting for review of safety status

3. Area Level Tripartite Committees: The Area Level Committee comprising representatives also periodically monitor the safety performance of the Area. 4. Tripartite Safety Committee at subsidiary company level

management consists of

representatives of workmen, DGMS and management for review and monitoring of safety measures. This is headed by the Chairman, CIL with workers

5. Coal India Safety Board:

representatives, D(T) CIL, D(P) CIL, CMDs of coal companies, the DGMS, a representative of the Ministry of Coal as members and E.D. (Safety & Rescue) CIL as Member Secretary. The Board reviews the safety status of CIL, formulates policies and gives guidelines for improving safety standards.

6. Standing Committee on Safety in Coal Mines: This committee is chaired by the Honble Minister for Coal and acts as the apex policy formulation group for safety and reviews safety performance of coal companies. Challenges in ensuring safety in coalmines: For underground Mines Problem of Strata Control

Problem of Gas, Fire & Subsidence Control Problem of Water Danger Problem of Communication & Tracking system

Problem of Ergonomics related UG machineries

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For opencast Mines

OB dump Slope Stability

Automation of activities / intelligent mining Safe Blasting Management

Traffic Control Management; code of practice Safety of contractors workers

Approach for prevention of accidents Risk assessment & management approach to assess the potential hazards. mitigation measures Categorise all Risk-prone mine and update it at regular interval and workout Safety Audits: After risk assessment of each mine, their safety audit should be done by independent safety auditor. explosions etc. in mines. Various steps for prevention of disasters arising out of inundations; fires; Strata management control to avoid accidents due to roof and side falls in mines, conducting R&D.

continuous monitoring of roof movement, adopting roof bolting systems, Improving emergency response systems etc. through mine-wise emergency action plans, conducting mock rehearsals, conducting rescue rehearsals etc. In case of open cast mines measures are being taken on continuous basis for reducing the accidents due to truck movement, imparting training to all the concerned, developing code of practices for HEMM operators, maintenance staff etc. Following actions have also led in reducing accidents: 1. Design of system of support of roof in the development workings in underground mines by scientific support systems based on Rock Mass Rating (RMR) studies. 2. Increased use of Roof Bolting / Roof Stitching methods of support using steel roof bolts/ steel wire ropes with quick setting cement grout to arrest bed separation at early stages to impede deterioration of roof.

3. Introduction of modern drills like mechanised drilling machine to avoid exposure of support personnel to unsupported roof while drilling for roof bolting and greater use of quick-setting cement/resin capsules grouted roof bolts for support in development workings in underground mines. 4. Reduced exposure of workers to mining hazards by mechanization of loading Support longwall (PSLW) system of mining, Continuous Miner Technology etc., are being progressively adopted in suitable areas.

operations by increasing use of SDLs and LHDs in belowground mines, Powered

5. Regular monitoring of mine environment by handheld gas detectors/alarms and

flame safety lamps for detecting inflammable and noxious gases. Besides, for early

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detection of situations that could lead to an outbreak of fire or an explosion, highly system (ETMS) have been installed and are in operation in thirteen identified underground mines. 6. Introduction of surface miner, an eco-friendly technology to reduce hazardous operation like drilling, blasting and crushing wherever applicable. 7. Application of advance technology in surveying and digitization of mine plans. 8. Increasing mechanisation wherever feasible. 9. Introduction of Man-riding systems in more number of mines.

capital intensive computerized continuous mine environmental tele-monitoring

10. Better lighting through mobile towers with a cluster of lamps are provided in major opencast mines. 11. Deployment of large capacity equipment to reduce traffic congestion. 12. Preparing Risk Management Plans: 13. Carrying out Geo-technical Investigations and analysis through expert national and international agencies for successful operation of Long wall panels. 14. Upgradation of Rescue Services. Disaster Prevention: The primary thrust of the Safety Strategy of CIL has been towards averting accidents with disasters in Indian mining parlance). Towards this end the following activities were taken:

a large number of casualties (accidents involving more than 10 fatalities are termed Inundation: Thrust on Safety Audit, Check Survey, Trials of Geo-physical Methods for

season etc. Before monsoon details Action Plan for preventive measures against inundation were prepared, implemented and monitored. o o o o o o To control spontaneous heating, fire & explosion in mine: Fresh Pressure Quantity Survey

detection of water bodies/proving parting, adequate preparation before monsoon

More thrust on construction of sectionalization stopping Initiated action to introduce Indigenous Chromatograph with software in place of age-old chemical method of mine air sampling for better accuracy. belowground. Use of Local Methane Detector (LMD) for early and accurate detection of methane

Use fireproof foam materials for quick setting of stoppings. including fire potential

Risk assessment based safety management plan by identifying principle hazards

Emergency Response Systems Emergency Action Plans (EAP): As per the Coal Mines Regulations, 1957, it is

mandatory for every manager of a mine having belowground workings to prepare an

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Emergency Plan of action to be activated immediately on occurrence of an emergency.

The Plan outlines the systems of information flow and duties and responsibilities of each mine official and key-persons. Emergency Action Plans (EAP) have been formulated in all underground mines of CIL. EAP of each mine are being reviewed from time to time and corrective action taken. Mock Rehearsals: conducting Mock Rehearsals from time to time to familiarize Emergency Action Plan as well as to monitor the failure points for corrective action.

officials and key-persons in their duties for examining the efficacy of Mine-wise Demarcating Escape Routes: An exercise for demarcating Escape Routes in underground mines, on plans as well as below ground by fluorescent paint, display of the same at the entry to the mine has been done. State of the art Rescue Apparatus like BG-4 Self Contained Breathing Apparatus was introduced in Rescue Stations and Rescue Personnel were trained for their use. 16.3 Crisis Management Plan of the Government of India:

The Crisis Management Plan of the Ministry of Coal has been prepared which lays down constitute a Crisis Group. A damage assessment team of the MoC will reach the site within 24 hrs of the occurrence of any incidents so that the Ministry can assess damage and augment response. Occupational health and safety The most critical diseases that are to be taken care in coal mining include

the role of the MoC. The Secretary, MoC is to put into operation its Contingency Plan and

pneumoconiosis and silicosis affecting lungs, nystagmus affecting eyes, muscle disorders due to vibrations, and noise pollution impairing hearing. Though the safety legislation all the required measures to detect the onset of any such cases amongst the workers and provides for addressing these diseases it is the duty of the management of mines to take provide timely medical care and safeguards to improve working conditions in mines. This requires specially trained medical professionals to understand the health problems of miners.

Rescue Organization: Rescue Stations have been established and are operating under Mines Rescue Rules 1985 framed under Section 58 of Mines Act of 1952 in CIL/SCCL. A Rescue Station should be available within 35 km. radius from any mine. Rescue Station should have at least 18 trained persons. equipment available at rescue stations. Resuscitating apparatus 12 Nos. Equipment schedule is mentioned in Section 11 of Mines Rescue Rules. Major Two hours self-contained breathing apparatus- 54 Nos. Each mine has at least one rescue trained person for every 100 workers. Training facilities and 18 Rescue Rooms in CIL.

At present there are 6 Rescue Stations, 15 Rescue Rooms-with-Refresher

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16.4

Action Plan for XII Plan accordingly within India & abroad for transfer of technical know-how, wherever mining technological assistance is required. Technological assistance: Areas to be identified and provisions are to be made

mines should complete and act upon risk assessment and management plans thorough a well drawn Action Plan in one year. The Action Plan should be reviewed from time to time. Safety Audit of the mines by independent safety auditor.

Risk assessment & management approach to assess the potential hazards. All

operations.

Wherever applicable, Surface Miners may be introduced to eliminate blasting Introduction of light weight modern cap lamps (LED type) and suitable belts in Use of Public address system, awareness programmes, intensive training and

all the UG mines to avoid fatigue and lower back injuries during incidental fall.

introduction of best practices for improvement of safety and safety culture in mines.

communication systems in underground mines.

To establish wireless communication in all opencast mines and modern

To provide each miner with RFD in next one year.

be imparted and Meditation Halls may be established in coal fields. For Underground mines: UG Mechanization: 1. 2. 3. 4. manual loading in underground mines. wall Mining in underground mines. environment.

To relief the stress of the mine workers, training on Yoga and Meditation may

As per recommendation of 10th National Safety Conference, phasing out of

Application of Mass Production Technology like Continuous Miners, Long

Need for air conditioning in UG mine at greater depth for better working

system may be provided at below ground mines. The followings are criteria for selection of mines for installation of man- riding system, namely 5 yrs or more i. If the gradient of travelling road is steeper than 1 in 3 and life of mine is ii. Where the gradient of travelling road is steeper than 1 in 4 and the life of the mine is more than 5 years.

Man- riding Systems: With view to reduce fatigue of workmen, Man-riding

distance of working face from the opening is more than 1 Km and the

iii. Where the gradient of travelling road is less than 1 in 4 but distance of working face from the opening is more than 1.5 Km and life of the mine is more than 5 years.

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Strata Management: 1. 2. mines according to their seam RMR values. General Ranking of coal seams as per RMR value: Categorization of UG Complete mechanization of roof-drilling operation in UG mines for complete

phasing out of manual drilling of holes by hand held electric drill. This would enhance quality of roof bolting. Formation of Strata Control Cell in each UG area of the Subsidiary company.

3.

4. 5.

where strata conditions are weak and all depillaring with caving districts. Phasing out of Cement Capsules and replacing it with Resin Capsules

Strata control and monitoring device / system to be installed in all UG mines,

Prevention of Disasters due to Mine Fires and Explosion 1. 2. 3. 4. 5. Introduction of Gas Chromatograph in each UG mine for ensuring better accuracy and quick analyzing of mine air samples. Introduction of location Tracking System in UG for workers going to remote

old working as well as use it during rescue and recovery operation. fire.

Efforts to be made to classify coal seams prone to spontaneous heating and

(PQ) survey.

Better mine ventilation by identifying problem through Pressure-Quantity

ventilation stoppings and explosion proof isolation stoppings as per requirement

Expediting construction of sectionalisation stoppings, isolation stoppings,

Others measures for UG: lamp in all UG mines. Introduction of LED type Cap lamp replacing heavy weight acid type cap Installation of Man Riding System for all UG mines having arduous travel Risk assessment based Safety Management Plan for all UG mines.

and sufficient mineable reserves.

For opencast mines 1. 2. training for all HEMM operators within two year. Procurement of at least one Simulator in each subsidiary company to impart

Incorporation of suitable and binding safety clauses for contractual /

outsourced operation as per recommendation stated in 10th national safety 3. 4. 5. 6. conference. Use of slope stability radar for monitoring dump stability. More stress on using eco-friendly surface miners. wherever feasible. Switching over to conveyor belt transport in place of truck transport

7.

Risk assessment based Safety Management Plan.

Formation of Slope / Dump Stability Cell in each OC Area

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Other measures for OC mine Dumping Yards, Subsidence checks, Operational Areas etc., it is proposed to install Safety Monitoring System at the above functional areas under the Safety Management Plan. Seismological studies/ monitoring system at NLC Mines. To improve the Overall Safety Monitoring of Mining Machineries, Conveyors,

on Fire Prevention / Fire Fighting Techniques for key and positional persons should be arranged.

Specialized Training on Intensive Fire Fighting (30 days continuous program)

and also for other employees working in Fire Accident Prone Production Areas Safety in new mining projects/blocks: It should be made mandatory to

incorporate a Long Term Safety Plan for the life of the Project for all new coal blocks should be monitored by government.

projects. Similarly, safety of coal mining operations by operators working new

Other Proposals on application of modern technology in Safety Information Database for uploading gist of accident enquiry to the company Providing facilities for uploading safety related information to company web Design of Computerized Mine Safety Information System in every mine.

web-portal

site for interactive database, where mine level executives can share their experience.

all coal companies in next two years. RESCUE SERVICES

Establishment of virtual reality training facilities at Central Training Institute in

At least two numbers of following equipment should be made available at each Mine Rescue Station (MRS). Hydraulic stone / rock cutter. Airlifting bag Power winch

Mobile winder to be kept at Central Workshop of each subsidiary. Water mist fire extinguisher. Rescue Mannequins

LCD projector for bringing awareness in safety aspects to mine workers WELFARE ACTIVITIES: PRESENT STATUS & PROGRAMME FOR XII PLAN

EMPLOYEES WELFARE (existing facilities available): One of the major considerations for nationalization of coal sector had been to bring rapid Companies were entrusted to create a well-organized delivery system for health care and

improvement in the quality of life of the miners and the surroundings of coalfields. Coal

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education initially for the miners, which were extended to the periphery of the mining Social Responsibility in the forms of Employee Welfare & Social Welfare were area and subsequently were further expanded to cover the entire coalfields. Corporate

therefore, embedded with the coal sector since its nationalization and all the PSU coal companies have been paying due attention for the well being of the miners, their families and the immediate vicinity of mining areas in particular, and the society in general. HOUSING: Present status Prior to nationalization, miners had been mostly staying in clusters of shanties without

any access to potable water or basis sanitation. Whatever, housing facilities provided by a few of the organized private coal mining companies were mostly substandard. At the time of accommodations starting from Bungalows for senior executives to staff quarters and Nationalisation, Coal India Limited took procession of 1,18,366 housing

sub-standard dwellings in coolie lines. By the end of 2010-11, the total number of housing in CIL fold has increased to 4,19,594 meeting 100% requirement a key mission of coal mines nationalization. WATER SUPPLY: A massive scheme covering nine States of the Country was undertaken by eight PSU coal endeavours coverage populace could be increased by more than tenfold between 1973 and 2010 from a level of 2.27 lakhs to 22.96 lakhs. MEDICAL FACILITIES: Nationalized coal companies have developed three tier medical facilities for its employees from primary health centres (Out Patient Department) to central hospital and finally referral apex level hospitals at the company headquarters. Specialist physician and

companies under the tutelage of CIL to provide drinking water in coalfields. By their

modern equipments have been made available in these referral hospitals for providing state-of-the-art medical treatment to the employees and their families. Whenever, the in-house facility is felt inadequate, the patient is referred to empanelled super speciality hospitals in India for necessary treatment.

Presently 86 Hospitals with 5,835 Beds, 423 Dispensaries, 640 Ambulance and 1524

Doctors including Specialists are available in PSU coal companies in the Country. This sector. Besides 12 Ayurvedic Dispensaries are also being run in the Subsidiaries of Coal India Limited to provide indigenous system of treatment to workers.

excludes, the facilities provided by SCCL, DVC and SAIL in coal sector and NLC in lignite

There is a, Special emphasis for community health and all coal companies have been periodicall taking up Occupational Health, HIV/AIDS awareness programme for the employees, their families as well as for the local populace.

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EDUCATIONAL FACILITIES: At present eight PSU coal companies have been providing financial assistance to 62 Schools, Kendriya Vidyalaya, Delhi Public School etc. and also providing occasional way of recurring grant-in-aid in packages/infrastructure facilities are also provided by apart, eight coal companies have also been providing time to time grant-inaid/infrastructure to Educational Institution operating in and around coalfield areas as a part of CSR activities. In order to encourage excellence in education, Coal India Limited have initiate general been initiated by Coal India limited: (a) project schools and infrastructure facilities to 54 project schools, like DAV Public

financial assistance to other recognized educational institutions. Financial assistance, by ECL, BCCL and CCL in their operating areas to 290 privately managed schools. These

and merit scholarship for the wards of its employees. following special endeavours have

Coal India Scholarship Scheme (Revised 2001) In order to encourage the Sons and Daughters of the employees of Coal India Limited in general scholarship is provided from class-V onwards up to Graduation/Post-

two types of Scholarship namely General and Merit Scholarships. Financial assistance graduation level in any discipline subject to securing prescribed percentage of marks.

Merit Scholarship is provided to those who have secured 95% and above marks in

ICSE.CBSE/ISC Exam (Class X and XII) where merit is not declared and to those who any State Board. The details during 2010-11 are as under: CIL Merit Scholarship Number of wards 24 Amount (Rs. In Lakh) 2.69

have secured 1st to 20th position in Class-X and Class-XII examinations conducted by

Scholarship (Revised2001)

General Scholarship (Class-V onwards Number of wards Amount

(Rs. In Lakh) 154.28

TOTAL (b)

15,120

Cash Award and certificate of appreciation: Every year Cash Award of Rs.5000/and Rs.7000/- respectively are provided to the Meritorious Wards of CIL Board level Examination. The status during 2010-11 are as under: employees who secure 90% or above Marks in aggregate in 10th and 12th Standard

Cash Award TOTAL

No. of employees wards 369

Amount of Cash Award (Rs. In Lakh) 12.90

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(c)

Considering the high cost of technical and medical education in the country Coal

India Limited is providing financial assistance towards meeting the cost of education of the dependent children of Wage Board Employees to the extent of Tuition Fees and Hostel Charges who secure Admission in Engineering in such Colleges viz., IITs, NITs, ISM etc which are short listed by CIL for conducting campus selection and also dependent children securing Admission in Govt. 2010-11 are as under Medical Colleges from the Academic Session 2009-10 onwards. The details during

assistance towards cost of

Financial

BE, B.Te;ch in Selected Govt. Engineering Colleges) No. of wards 193 Amount

Engg. Students (IITs, NITs,

Medical Students (MBBS)

education TOTAL

employees

(Rs. In Lakhs) 66.84

employees Wards 125

No. of

Amount Lakhs) 34.42 (Rs. In

Other Welfare Measures: In accordance with the provision of the Mines Act 1952 and Rules and Regulations framed

there-under, subsidiaries of Coal India Limited are maintaining various statutory welfare facilities for the coal miners such as 481 Canteens, 530 Rest Shelters and 35 Pit Head Baths. Besides this, by the active encouragement of coal companies 24 Central Cosupplying essential commodities and Consumer goods at a cheaper rate in the coalfields. 181 micro-credit Co-operative Societies are also functioning in the Coal Companies. Banking Facilities: In order to curb the menace of age-old exploitation of the miners by the illegal credit operators, Coal Companies have been providing infrastructure facilities to Nationalised

operatives and 128 Primary Co-operative Stores are functioning in the Coalfield areas for

Banks for opening their Branches and Extension Counters in the Coalfields. All employees Counters of nationalized banks are now operating in the command areas of eight PSU

are now being paid their salaries and wages through Bank. 485 branches and extension coal companies. Intensive campaign programmes are arranged by coal companies to

educate workers for banking operation. Welfare officers of the coal companies have been taking active part to inculcate the practice of thrift amongst coal miners for the benefit of their families.

Promotion of Sports and cultural activities:

Coalfield areas of the countries have rich social and cultural heritage. Maintenance of traditional ethos of tribal culture and at the same time bringing the best of the modern culture to the miners has been considered a focus point in the welfare activities of the

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coal companies. Accordingly promotion of Sports and Cultural activities of the employees

& their wards get special attention. Every year sports events in 15 different disciplines are

organized by coal companies under the aegis of Coal India Sports Promotion Board. Inter Colliery & Inter Area level sports & Cultural meets are also held in the coalfields. Rural sports and Handicapped sports are important events of the coalfields. Community and Peripheral Development Public sector coal companies have been regularly undertaking different Community and Peripheral Development activities in and around the coalfield areas for the benefit of the local people.

During the first three years of the XI Plan , the expenditure for Community and Peripheral 2007-08 to Rs. 40.14 Crores in 2009-10.

Development by the subsidiary companies of CIL grew from a level of Rs. 30.15 Crores in

CORPORATE SOCIAL RESPONSIBILITY (CSR): The growth of coal sector is directly dependent on the availability of land. Support of CSR should be considered as a strategic tool for sustainable growth. CSR means not only local populace being an intrinsic requisite to achieve sustainable growth of coal sector,

investment of funds for Social Activity but also Integration of Business process with Social process. So far as PSU coal companies are concerned there is already a well-defined CSR policy on the basis of DPE guidelines covering all the aspects of the needs of the Society.

PSU coal companies have already increased their coverage area under CSR from 8 Kms to cases beyond mining areas outside the state under special circumstances.

15 Kms for every Project and Area. Further, their Board of Directors can approve specific

CIL has already increased its fund allocation for CSR activities from Rs.1/- per tonne of Coal production to 5% of the retained earning of the previous year subject to the 152.33 Crores spent during 2010-11, CIL has increased its budget allocation to Rs. minimum of Rs.5/- per tonne of coal production of previous year. From a level of Rs. 553.33 Cores in 2011-12 for CSR.

coal companies:

XII Plan programme for Employees Welfare and Corporate Social Responsibility for PSU

Following are the thrust area for XII Plan period: 1) Nuclear Townships:

Dispensary, School/College, Recreation Club, STD booths, Banks, Adult Education Centre, therefore, either facilities attuned to modern living could not be provided or if available are not being optimally utilized and therefore are not economically viable.

Each project is to be equipped with nuclear Townships with all the amenities, like

Places of worships, Stadium and Parks etc. Presently, the colonies are scattered and

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2)

Promotion of Sports activities:

In each coalfield at least one Sports Academy is planned to be developed for the most popular sports of the region. The sports academy will offer training and coaching facilities to employees and their wards and also to outside talents of the growths of promising talents in various discipline of athletics and sports.

neighbouring areas. Suitable policy would be formulated to promote career

3)

In order to provide opportunity engineering and medical education facilities to the one Medical and one Engineering College in each subsidiary of Coal India Limited.

Opening of Medical and Engineering Colleges:

wards of the employees and local populace, efforts shall be made to open at least

4)

Upgradation of existing Hospitals:

The existing Hospitals in the Project shall be upgraded by extending required be improved further.

facilities so as to reduce the referral cases outside. The employee-bed ratio shall

5)

The existing Canteens near the Project sites shall be upgraded and efforts are to be made to make them Air-conditioned with facility of subsidized meals.

Upgradation of Canteens:

6)

Health Awareness Camp on major Medical heads like:-

Regular health awareness programme for the local population in the coalfields are

to be undertaken by PSU coal companies on AIDS, TB and Leprosy, on Social evils like alcoholism, smoking, drug abuse etc., on family welfare issues like Child and Mother care, Diet and Nutrition. Coal Companies would also organize Blood donation, eye care including cataract operation to help the people of the peripheral area. (7)

Social Empowerment:

Coal Companies will support various schemes on Self/Gainful Employment

Opportunities, Assistance to villagers having small patch of land for developing economically dependent on their available land resources. Trainings will be

mushroom, medicinal plants and other cash crops farming to make them provided by agricultural experts for application of modern farming methods. embroidery designs, making various food items like pickles, jam, fruit drinks etc., painting and Interior decoration and other Vocational Courses. (8) Liberalization of R&R Policy of CIL

Various training programmes shall also be organised for women on tailoring,

In view of changing aspiration of the PAPs, fast acquisition of land and to meet other R&R issues, CIL is in continuous process of liberalization of its own R&R Secretaries of Coal Bearing states, Secretaries of Ministry of Rural Development, Policy. Ministry of Coal has also constituted a committee consisting of Chief Department of Land Revenue, Ministry of Tribal Affairs, Ministry of Environment

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and Forests, CMDs of all subsidiaries of CIL and Director (P&IR), CIL to examine for liberalization of CILs R&R Policy and to redress aspirations of PAPs and to evolve a PAP FRIEDNLY R&R POLICY.

further liberalization of CILs R&R Policy and to redress to examine for further

Need for formulating uniform Welfare & CSR Policies for coal sector: As per the projection of XII Plan, detailed in Chapter-4, contribution of captive coal blocks and private mining is envisaged to increase from a level of 10% in 2011-12 to 15% by the end of TY of XII Plan (2016-17). By the turn of XII Plan these mines are envisaged

to contribute 30% of the all India production. While, the employee welfare scheme and CSR activities of PSU coal companies are already structured under various Government Guidelines and Agreements, viz. DPE guidelines and National Coal Wages Agreement,

such uniform policies are not applicable for private sector. A uniform national policy framework needs to be formulated for coal sector in respect of employee welfare and fund allocation for corporate social responsibility. Since a multiple number of corporate elected bodies, will be required for implementing rehabilitations and local area resources through creation of duplicate and or excess infrastructure, a distinct possibility

entities shall be operating in the same coalfields, third party agency, may be the local development projects for optimum utilization of resources and avoidance of wastage of in case of execution of projects by the individual corporate entity. Therefore, in the policy formulation for corporate social responsibility, a pre-defined fund allocation needs to be designated execution agency. made mandatory commensurate to production, which shall be deposited to the

Unless a level playing field is created across the sector for sharing the societal cost of

coal mining through uniform rule, it will be difficult to maintain the improvement in habitat of the coalfields achieved so far and the quality of life may ultimately regress back to pre-nationalization era.

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CHAPTER 17 HUMAN RESOURCES REQUIREMENTS 17.1 INTRODUCTION Since the time of Nationalization when all India coal production was to the tune of 80 Mt, a phenomenal growth has taken place. The upward trajectory has only increased in intensity over the immediate past as a result of a significant escalation in demand. The production went on to100 Mt during 1978-79, crossed to 200 Mt during 1989-90, surpassed 300 Mt during 2001-02, exceeded 400 Mt in 2006-07 and vaulted over 500

Mt by 2008-09. The accelerated rise in coal production has necessarily matched with according to business as usual scenario in the terminal year of XII Plan (2016-17) is

burgeoning demand of coal. As per the current projections, all India coal production expected to reach a level of 715 Mt, of which the share of Coal India will be of the order of 556 Mt. However, the crying need for coal for power sector may require vastly augmented coal production and it is envisaged that indigenous coal production may have to be augmented to the level of 1000 Mt. In this context, a relook is necessary on the area of the human resources requirements to meet production, productivity and safety industry. mandates, besides the requirements of a new order of mechanization for the coal

Coal India Ltd is a major constituent of the all India coal production with greater than 80% contribution to the national pool. Using Coal India as a case study one can safely predict stratagem for upgrading skills for new levels of productivity and performance. The basic the requirements of human resources for the national coal sector and work out a prerequisite to help accomplish this objective is to have an effective and goal oriented training system in place with detailed mapping of manpower requirements of appropriate/required skills. The coal industry needs an innovative framework to attract, select, deploy and develop the industrys human capital, which is radically different vis-vis, other industrial sectors.

As the demand for coal increases, the size of a capable and experienced workforce development, training and retention at all levels within the coal sector thus emerge as a core issue.

decreases, and a potential watershed is fast approaching. Manpower availability, their

17.2

A Situational Analysis

The coal industry, and CIL in particular, is emerging as a geriatric organization with average organizational age over 50, with vanishing skill set based on experience and table: reduced ability to learn to learn. The age profile is clearly demonstrated in the following

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Age Profile of work force

Company Total CIL Total (in %) CIL < 25 Yrs 4,738 1.2 26-30 Yrs 11,596 3.0 31-35 Yrs 23,167 6.1 36-40 Yrs 46,014 12.1 41-45 Yrs 63,523 16.7 46-50 Yrs 75,420 19.8 51-55 Yrs 79,632 20.9 56-60 Yrs 76,675 20.1 Total Manpower 3,80,765

The categories of workforce in the case of CIL could be distinguished as follows:

Executives, Supervisors and workers (skilled/unskilled), and A further sub-set of surface and underground workforce. Statutory personnel (Executive and Non-executive) Specialist cadres.

1.04.2011, which shows that executives constitute only about 4.7% of the aggregate manpower in CIL.

The following table presents an overview of grade-wise manpower in CIL as on

Grade-wise Manpower of CIL (As on 01.07.2011) Category Executive Supervisor. Skilled Unskilled Ministerial Casual Badli Others/ Co (T) Total Total CIL 17,768 34,932 1,48,094 1,51,923 23,840 117 270 3,863 3,80,807 Percentage 4.7% 9.2% 38.9% 39.9% 6.3% 0.0% 0.1% 1.0%

The current status of executives occupying statutory positions is shown in the following table.

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Statutory position of Executives (As on 01.05.2011

Company

2nd Class Managers Required. Available 1, 755 (-) Short/ (+) Surplus -932

1st Class Managers Required. 1,422 Available 1,654 (-) Short/ (+) Surplus +232

CIL

2,688

The data on the non-statutory persons in place in CIL are shown in the following table and highlights the critical gaps that could impact on safety and performance.

Non-Statutory Manpower vis--vis Shortage (As on 01.05.2011)

Company CIL

Category Over-man Mining Sirdar Surveyor

Requirement 6,069 8,250 1,036

Available 4,986 6,581 966

-Shortage/+Surplus -1,082 -1,693 -70

On an overall synthesis of the manpower data the following scenario emerges:

CIL is faced with a shrinking base of experienced front-line supervisors, be it of overman, mining sirdars, surveyors and electrical supervisors, who provide the key surveillance inputs for safety and production at the working face and are responsible

for day-to-day operations. The situation may exacerbate with the poaching of CILs experienced pool of supervisory staff by the new entrants in the coal sector.

On an annual basis, attrition accounts for some 4% to 5 % of the total manpower

strength, which mandates a massive drive for induction of fresh manpower. This also with CILs vision, need-based skills and competency training inputs. calls for significant augmentation of training infrastructure for alignment of inductees

Over 105,000 unskilled daily rated workforce available to the company need to be suitably trained for improved competence and value addition to the company.

The looming shortage of executives in XII Plan period due to freeze in induction of executives between 1997 to 2008 has created a veritable vacuum, which needs to be choice. filled in aggressively with a new strategy of making Coal India, the employer of

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The changing technology paradigm in coal mining calls for new and innovative training aids such as extensive use of simulators and recourse to video conferencing based training programmes.

To deliver enduring high performance, coal companies need an innovative framework to attract, select, deploy and develop human capital of every category of workforce.

17.3 New Training Initiatives In order to meet the challenges of manpower for the production targets of the XII Plan, have to comprehend both the quantitative and qualitative dimensions. There is also a

the industry has to undertake a major skill gap analysis for all its employees, which will compelling need to create specialist cadres for dealing with the new order of technological functions and for research. In CMPDI, there is an emerging crisis in manpower availability, with large-scale exodus of technically skilled manpower. There is

also the likelihood of CMPDI developing as a research wing of the coal sector. Over and above the initiatives required for bridging the quantitative gap in demand for skills, the sector, call for implementation of new HR initiatives. development of new skills for changes in technology, especially for the underground

The current infrastructure for human resource development will need to be revamped, with new training aids and tools, realignment of the focus of the training efforts and evaluation of the effectiveness of training inputs. One can foresee the application of 8-10 new simulators for surface and underground mining and new modes of delivery of programmes will be beamed to 30 odd training centres every day for a massive shake up strategic locations around the industry may also be required. training inputs through video-conferencing. From IICM, one can envision that training in training delivery. Setting up of specialized training centres for supervisory staff at 4/5

In summary, CIL faces a massive challenge for training of its workforce and also of executives which mandates the following:

Radical shift in the focus of training initiatives, with multi-skilled workforce prepared and groomed for new levels of performance; Assessment of training techniques that strengthen the miners ability to act competently in emergencies; Use of simulation to enhance the perceptual judgment and decision-making skills of workers confronted with mine hazards; Revamping of VTCs with state-of-the-art facilities for video presentations of new training materials on safe performance; Institutes; Extensive utilization of computer-aided instruction and use of simulators in Training

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Transformation of IICM into an open university beaming courses through videoconferencing directed at executives and management trainees. This will call for strengthening the faculty at IICM.

17.4 Key Recommendations: In respect of development of human resource for the coal sector the key

recommendations are as follows:

Keeping in view the gigantic task ahead for human resources development of the coal sector, a national level high-power committee may be constituted to examine in depth the issues involved to frame an actionable agenda. Coal Industry manpower has to face the rigours of living in not - so - hospitable remote locations of the country and is denied the facilities and infrastructure such as living accommodations, schools, manpower. Unless special pay scales as incentives can be provided or fast track career industry will not be possible. The benefits and amenities to be extended to highly skilled executive manpower in the coal industry have to be distinctly different and attractive vis-a- vis other PSUs. hospitals and other social amenities which impinge on the induction and retention of progression assured, development of high calibre human resources for the coal

The training of non-executive manpower in the coal sector deserves a heightened focus of attention and the existing VTCs and training institutes need to be revamped for new quality of training. Audit of the available facilities in VTCs including training in training facilities. Setting up of specialized training centres for supervisors at 4/5 strategic locations in the coal industry is urgently required. CIL subsidiaries may take modules around the coal industry is urgently required to identify and bridge the gaps

up at least one polytechnic in their command area and re-equip the same with and the existing manpower.

advanced learning tools and delivery systems for upgrading the skills of new trainees

Indian Institute of Coal Management (IICM) should expand its footprint as a Centre of

Learning for the coal industry. The institute has to oversee the training needs of senior and middle management level executives and for this purpose has to emerge modules for video conferencing have to be significantly enlarged; the institute also with a new mantle of Open University. The institute facilities for beaming training needs to spawn training units at each subsidiary level and use the model of Indira

Gandhi Open University for offering its programmes including interaction with the establish collaborative link with oversees institutions for training of coal industrys of middle and junior level executives, which can be made available through video conferencing.

coal industry personnel under training. The institute has to expand its reach and senior executives. The institute will also formulate modular programmes for training

The skill deficit at the level of executives, especially at the level of mining engineers, dictate that the coal industry must undertake some hand holding with mining

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engineering faculties around the country to prepare mining professionals required by

the coal industry. The coal sector has to develop closer links with institutions to develop appropriate programmes, which address specific requirements of the industry. The coal industry will also have to support research at the institutions and graduates choose Coal India as employer of choice, which could be mutually beneficial. Indian coal industry faces a daunting challenge of human resource development at all levels - from front line supervisors to senior level executives - for a new order of refocus the initiatives on human resource development if only to attain the production goals it has set for itself. performance. For the new paradigm of mechanization, the coal industry has to

provide adequate facilities for training undergraduates with scholarships so that the

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CHAPTER-18 ACQUISITION OF COAL ASSETS ABOARD 18.1 Need for coal imports to India

The proved geological reserves amply reveals the fact that in India there is scarcity of coal which can be economically mineable. Moreover, timely supply of these types of coal

domestic reserves pertaining to good quality metallurgical and low ash thermal grades of from domestic sources is additionally constrained by their occurrence in densely

populated areas, making land acquisition very critical, complex and usually a long drawn abroad has assumed larger dimension in view of increasing gap between domestic

process not meeting to nations requirement. The need for acquiring coal resource demand and indigenous availability, which is projected to be more than 265Mt ( 35Mt of to 423 Mt by the end of XIII Plan.

coking coal and 230 Mt of non-coking coal) by the end of XII Plan and to further increase In respect of widening of the demand-supply gap, it is felt prudent to formulate a national policy for acquiring coal assets abroad. The government has an important role to play in terms of creating enabling conditions for Merger & Acquisition (M&A) and

initiating Government to Government (G2G) discussions on various issues to enable the approach to effectively compete with companies from Asian counterparts like China, MNCs. 18.2

Indian companies, both Private and Government, work through a unified Indian coal Inc. Japan, Korea and also from Brazil, Australia, South Africa and the oligopoly of large coal

The current trend of international coal trade

The analysis of data of imported coal for the last decade or so reveals the fact that coal imports have grown exponentially in the recent past. The CAGR% for coal imports last 20 years and 10 years stands at 13.2% and 15.5% respectively. Majority of coking coal are imported from Australia while thermal coal imports are primarily from Indonesia and South Africa. Coal import into India is expected to substantially increase from present level of about 89 Mt to about more than 265 Mt in 2016-17 and thereafter. It, therefore, sustain or increase the exportable production level to meet Indias need both from the needs to be explored to what extent the present sources (i.e country/coalfield/port) can

view of coal production and coal evacuation. It also needs to be seen how much coal can Japan, Korea, Taiwan etc. The hot pursuit for coal assets globally also creates the also identify new countries which could be a potential source for importing coal to India. 18.3 The indicative coal reserve and the reserve to production ratio for the Countries 18.1.

be secured by Indian companies in face of stiff competition from countries like China, necessity to identify the emerging coalfields in the known coal exporting countries and

which could be potential source for import of coal into India is given in Annexure

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18.4

The global trade in coal is divided into two distinct flows viz. Atlantic market: where most of the coal flows into Europe. The key supplying this market are South Africa, Russia

countries

Colombia Venezuela.

and

India also. The coal to this market is supplied by Australia, Indonesia and South Africa.

Asia-Pacific market: where most of the coal flows into East Asia and now

The trade in both the markets in 2008 is furnished in the chart given in Annexure 18.2 18.2.1 A graphical representation of import trends of different Asian countries as given in Annexure 18.3 reveals the following:

In 2002 Japan led the market share of Asian thermal coal trade with 47% share which has subsequently decreased a level of 39% in 2008. and 19.5% respectively. The market share of Korea and Taiwan has remained stable at around 23.5% China, which had minimal thermal coal import in 2002, significantly increased its import to about 10% of market share by 2010. 10%. The market share of India from 2002-2008 has increased from a level of 5% to The overall CAGR percent of imports by Asian countries from 2002-2008 stands at about 7%.

18.2.2

An analysis of growth in global thermal coal exports of major coal exporting countries as given in Annexure 18.4 reveals the following:

Australia occupied the maximum share of Asian thermal coal trade in 2002 comprising to about 21%, which decreased to 17% by 2008.

Similar trends has been observed for South Africa and China where exports have decreased from the level of 15% in 2002 to 9% in 2008 in case of China and from 15% in 2002 to 6% in 2008 in case of South Africa.

Russia and Columbia have shown significant increase in market share. In case of Russia, the market share rose from a level of 7% in 2002 to 13% in 11% in 2008. 2008 while in case of Columbia the market share rose from 8% in 2002 to

The most significant growth in market share was observed in case of Indonesia, which rose from 14% in 2002 to 26% in 2008.

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The overall CAGR% of exports into Asian markets from 2002 to 2008 stands at 5.5%

18.2.3 An analysis of activities related to expansion in thermal coal production and infrastructure capacity building reveals the following scenario The export capacity of Australia in expected to increase to a level of 213 million tonnes by 2020 from a level of 115 million tonnes in 2007. from a level of 173 million tonnes in 2007. Indonesia is expected to export 240 million tonnes by 2020 increasing Columbia is also expected to increase its thermal coal export to a level of 109 million tonnes in 2020 from the level of 65 million tonnes in 2007 and the incremental production is expected to come from new mining areas of El Descanso. However, the export from South Africa is projected only at 87 million tonnes in 2020, which is only a 20 million tonnes increase from its 2007 level. This is primarily due to decrease of production capacity arising out of closure of old mines and constraints in rail/port logistics for evacuation of coal from new/virgin coalfields.

18.3

Indian coal import scenario : the future options of coalfields/countries for sourcing coal to India was made. The An analysis of above information and studies made by the different agencies on

key observations which emerge have been grouped separately for thermal and enhancing imports from leading exporters like Indonesia and South Africa, on the

coking coal. While on one hand there are concerns going forward regarding other hand, there are possibilities of meeting the import demand importing from

new countries or from new coalfields of known countries. A brief futuristic view of each country, which is either already an exporter of thermal/coking coal or could be a potential source in future, is presented below:

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Country

Overview

Advantage

Disadvantage

Way Forward

Indonesia

Largest

exporter to India. Future come

thermal

coal

Lowest

cost to India. Low cost

freight

Likely option of export of low CV coal. Meeting market (DMO). Future

Beneficiation of high moisture coal to enhance GCV.

production from

will East

of

domestic obligation

Kalimantan and Sumatra. Central Kalimantan

mining due to opencast-able reserve.

Enhance to quantity.

production DMO

meet

semi-coking and high CV thermal coal resource.

has

Availability river network.

of

from Sumatra and East high moisture coal. Legal framework. High logistic cost from Sumatra.

production

Investment logistics Kalimantan Sumatra. Sensitize platform allocation assets. in

in Central and

Kalimantan will low CV

FDI allowed in coal mining.

bilateral for of G2G coal

Australia

Highest exporter of coking coal to India. Superior grade coal reserve. Suitable investment climate. Galilee, Surat and Gunnedah are emerging logistic is an issue. thermal coal regions but

Superior quality of coal reserve. Availability state-of-art technology human resources of and

Constraints in ports and railway capacity. Introduction of MRRT will squeeze import. Landed cost of thermal coal from Australia to India high. is apparently

Utilization of sovereign funds to create logistic infrastructure. Infrastructuremining Consortium should collectively invest. of Indian companies

Western Australia can be a competitive source of thermal Availability of superior quality thermal coal. Availability technology human TRANSNET has capacity constraints. RBCT has capacity of and constraints. coal import to India.

South Africa

Comprises of 30% thermal coal exports to India. Production from known coalfields are depleting. Limpopo province is an emerging region.

Focus on coal of GCV 5000-5500 Kcal/kg. Infrastructuremining should invest. Option evacuation from of for coal Limpopo Consortium collectively of Indian companies

resources.

through Mozambique may be explored.

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G2G

allocation

of

coal blocks. Mozambique Emerging destination for sourcing coking coal to India. Proven reserve province. Known reserve in other provinces. VALE and RIVERSDALE to start production shortly. Favourable FDI policy in coal mining. High ash percentage in ROM coal. Railway hauling Availability coking coal. of distance is large. thermal and Nearness to India. Availability in Tete of Constraints in Railway capacity. Ports cannot handle large size vessels. Build and Nacala. Explore (through alternate railway line to Beira Develop deep sea ports to handle cape size vessels.

coal resources.

barge Zambezi-

cum-railway option). G2G allocation

SENA railway line started operation. Coal has to be hauled over a large distance to ports.

coal blocks.

of

Infrastructuremining should invest. of Indian companies collectively Consortium

USA &

Canada

Has large reserve of good quality metallurgical and thermal coal. Existing network of railway and port. Some quantity of thermal coal and metallurgical India. coal has been exported to

Favourable FDI policy.

Very high freight cost unless Cape vessel is used.

size

Use Cape size vessel for coal export.

Availability technology human resources. Metallurgical

of and

Thermal coal has high sulphur percentage.

Develop long-term contracts of thermal coal on cost + basis. Invest in metallurgical coal mines.

coal trade can be competitive with large size vessels and low cost of mining. Large of quantity high CV for High maritime freight cost.

thermal coal is available export. Columbia & Venezuela Known source of coking and thermal coal reserve. Can be a new source for thermal and

Special price regime to be worked out.

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coking coal to Primarily exporter in India. G2G allocation of Europe and USA. Investment required. in logistics coal blocks. Infrastructuremining should invest. Consortium collectively of Indian companies

Russia & Mongolia

Known reserve of coking and thermal coal.

Good quality reserve available for acquisition.

High inland cost for transport.

Special coal corridor through China required from Mongolia. High price of coking coal make investment in Russia justified for metallurgical coal.

Botswana & Madagascar

Known source of Anthracite and Bituminous coal. Govt. inviting investment.

Available coal reserve. Favourable FDI policy.

High logistic cost. Infrastructure required to be built up.

G2G

allocation

of

coal blocks. Infrastructuremining should invest. Consortium collectively of Indian companies

18.4

Issues and concerns in respect of acquisition of assets abroad:

18.4.1 Coal a strategic asset: Recent global trends of Merger & Acquisition (M&A) in coal market reveals the fact that

asset in different countries all over the world, which illustrates the thrust of competing nations on long-term energy security. The burgeoning demand-supply gap in India is of energy security through imports is a matter of strategic importance. a great concern for the energy security of the nation and thus the issue of enhancing

countries like China, Japan, Korea and Taiwan are in a aggressive spree to acquire coal

the resource and reserve belonging to the coal asset is virtually added to the national

It has to be understood that whenever any coal asset is acquired by any Indian company,

inventory of energy resources. Therefore, the value addition achieved at the cost of the forex outflow has a long-term potential bearing on the capacity of the nation to energize

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industrial growth, whose bottom line is manifested in overall improvement in quality of terms of increasing the energy inventory of the country.

life of the people. Thus acquisition of coal asset by an Indian company is strategic in

Acquisition of oil and gas asset abroad by Indian companies had taken place much ahead than for coal asset because of import-dependability of India with respect to oil and gas requirement is very high. With passage of time coal imports into India over the last two

decades has increased manifold and is expected to increase exponentially in future. Therefore, import dependability of coal is on the rise and the trend is likely to make coal asset acquisition or coal imports as strategic as oil and gas sector. Therefore, acquisition of coal asset abroad needs to be viewed by the Government, as acquisition of strategic acquisition.

asset and Indian coal companies needs to be facilitated and encouraged for such

Therefore, the outlook of the Government in terms of strategic policies and initiatives for overseas M&A deals has to be of equal stature for coal and oil & gas asset so that the much needed energy security of the nation is ensured.

18.4.2 Potential threat from Chinese Govt. backed M&A Model A close look at the M&A deals in the recent past in oil and gas, mineral and infrastructure sectors across the world has proved beyond doubt the success of Chinese M&A model for acquisition abroad. Chinese Govt. adopts a policy wherein two Chinese companies are rarely seen competing with each other in foreign soil for acquiring the same assets. The so that the companies can acquire assets that do not apparently appear to be attractive from CIC. The Chinese Government also extends its diplomatic umbrella to sensitize G2G initiatives

Chinese companies are backed with soft loans from China Investment Corporation (CIC) based on prevailing rate of market borrowings but looks attractive considering soft loans

to bring favours for Chinese companies in case of acquisition of mineral assets on nomination basis. It has been seen in many cases that the Chinese government has countries, specially in the African continent so that the relationship can be later leveraged provided sovereign funds for development and creation of infrastructure in various by the Chinese companies to acquire mineral assets. In the face of such Govt. backed assets or any other mining assets for that matter, in emerging economies like Mozambique, Indonesia and South Africa. 18.4.3

Chinese M&A model it would become difficult for the Indian companies to acquire coal

Creation of Sovereign Fund for Infrastructure development

An analysis of situation in various countries in Section-II clearly brings out the fact that in

most of the new or emerging coalfields or coal basins, investment in coal mining cannot

be on a stand along basis and would invariably require more investments in logistics and

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infrastructure capacity building. This results in the following difficulties for coal mining companies: a) In some cases, the coal companies may have the financing capabilities for

investing in development and operation of coal assets, but not for creation of entire

logistic infrastructure. But unless investment in logistics is tied up the investment in coal asset does not appear to be feasible as the coal business model would depend on and availability of port capacities for loading the ships for export to India. b) developing the value chain for transportation of coal from the mine to the nearest port

projects, it would require assurance from other coal companies working in the vicinity to

In most cases, even if a coal company has the capability of investing in the logistic

enter into contracts for long-term transport of coal through the logistic infrastructure. In foreign land this creates another set of complexities for a mining company to handle and the investment finally is not made despite the coal resources being technically attractive. c)

sovereign fund to be spent in countries for creating railway and port infrastructures

This would require assistance of the Government in the area of either creating

where consortium of Indian coal mining companies finds it attractive to invest in the coal who may set up separate logistic companies to manage the logistic network. The consortium of Indian coal mining companies can enter into contracts with the Indian railway line-port is of Indian ownership. d) infrastructure companies so that entire ownership of the value chain from coal miningresources. The infrastructure projects can be through Indian infrastructure companies

It had been the experience of Indian companies who are pursuing initiatives for

acquiring meaningful resources in foreign land, particularly Africa, that the political country. Thus in some cases the initiatives for acquiring mineral resources, including coal, needs to be preceded by first forging a friendly political climate in form of exchange of diplomatic missions, execution of MoU and treaties and creation of bilateral working groups for specific asset like coal. It is suggested that the Indian coal companies may need to follow the same route and put up a strategy paper to the Government furnishing government may, therefore, consider taking a lead in creating a political alliance first followed by M&A alliances between the companies of the countries. 18.4.4 Specific issues for empowering Govt. owned enterprises While all the above issues pertaining to the Indian coal companies, both government owned Indian enterprises both in coal and mineral sectors for successfully acquire asset abroad. The ensuing sections brings out some of the key issues : a) owned and private. There are few specific issues which are consisting the Government closeness of the Governments can create preferential status for the companies of that

a list of underdeveloped and developing countries which has prospective coal assets. The

and the subsequent mining operation and transportation of coal will involve certain risks.

Any proposal of acquiring coal asset overseas through Joint Venture or otherwise,

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Needless to mention similar risks also exists for coal mining business in India. Any acquisition proposal for foreign coal asset spells out in detail the identified risks and their mitigation measures. But the confidence for negotiating risk in foreign land can only be developed by implementing projects and gaining experience over time. For the maiden proposals, Board of Govt. owned coal companies has to build the risk appetite and proceed for acquisition. However, absence of clear-cut Govt. guidelines allowing PSUs to process. b)

be strategically aggressive for maiden foreign acquisitions impedes decision making

or consumable items in India. There are Purchase Manual in place duly vetted by

Acquisition of coal asset is a different ball game than procurement of machinery

regulatory government agencies for procurement of goods and services and the tender route is generally followed for such procurement. Identification of coal asset abroad to be firstly, reputed coal companies which intend to sell coal assets do not respond to the taken up for acquisition cannot be done through a tender route for the following reasons tender; secondly, there cannot be a cost or price based selection of a coal asset as

conventionally followed in buying of goods or services. Acquisition of coal asset is based on a combination of technical and financial parameters and no structured process based selection of such asset, like that of a conventional tender, is possible. This necessitates acquiring coal asset or for that matter any asset abroad without any prejudice to existing due endorsements from regulatory Govt. agencies like CVC, CAG etc. c) clear guidelines from the Govt. to allow the PSUs to follow a need-based strategy for guidelines for procurement of goods and services. Such guidelines shall also need to have

There is an urgent need to put into place a policy to appoint Investment Bankers

on nomination basis to incentivize them for bringing exclusive deals which can be transacted on one-to-one basis. d)

proposal involving domestic coal blocks are prepared for life-of-the-mine spanning over a period of 20-25 years. Such project proposals are backed up by extensive data generated through exploration and drilling programme involving substantial investment. programme to take the asset to a saleable level and limited investment is made in such

Typically as per practice followed by Govt. owned coal companies, the project

Generally owners of foreign coal asset only undertake limited exploration and drilling exploratory programme. With the available data mining plan and business plan can be made for a period of say 5-10 years and for the remaining period of the mine assumptions are required to be made regarding possible production, logistics, price etc.

Therefore, unlike the domestic projects, in-depth detailed business plan cannot be made

for such foreign coal asset and therefore a large part of the enterprise valuation would have to be done based on assumptions made on the basis of market knowledge and expertise. Therefore, like to like comparison of proposal for acquiring coal asset abroad understanding made by Investment Banker, Technical Consultants and CILs in-house to that of investment proposal in domestic coal assets is not possible and such short-

comings have to be recognized for approving proposal for acquisition of coal assets abroad. Moreover, it may be worth-mentioning here that guidelines for investments in

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domestic coal projects exists in terms of critical IRR % but no such guidelines are

available for investment abroad. IRR in Indian Rupee terms (INR) is not practicable and investment is to be made. This creates the need for either circulation of guidelines regarding critical financial parameters like IRR %, ROI (Return on Investment) etc. specially for acquiring foreign coal asset or the coal PSUs which intend to acquire such assets need to be empowered to take decision based on their own judgment and on the merit of

hence IRR% must be defined in terms of the currency applicable in the country where the

security of the Nation. The Company Boards decision in this respect should be taken as final and the Board should be empowered accordingly. e)

acquiring any coal asset as a strategic asset to be acquired for enhancing the energy

private entities and only very limited numbers of such entities are listed. Therefore, (either listed or unlisted) only, particularly in working coal mines or developed coal blocks. The decision making process of a private company is comparatively much faster than that of a PSU in India as because the inflexibilities in decision making of public

In most of the target countries for acquisition, coal mining is undertaken by

acquisition of coal asset in these countries would necessitate deals with private entities

sector creeps in most of the time. As a result the timeframe for completion of deal as

envisaged by the private entities cannot be complied with. In cases, where the sale of equity in coal asset is done through bidding process the competitors in the bidding process are also private entities who have faster decision making process. The time taken

in decision making in Govt. owned companies has time and again proved to be stumbling block to put Govt. companies out of the race due to inability of submission of offers enter into partnership with Indian PSUs because of its unique position, failure to comply which the position was favourable. f) within specified time frame. In spite of the sellers of the asset having strong inclination to to the time bound bidding process led Indian PSUs unsuccessful to clinch the deal in

not necessarily be a listed entity in itself. Under the ongoing scenario of aggressive

It is also pertinent to note that a particular coal asset of any listed company may

acquisition of coal resources by Indian Private Companies as well as other global coal companies, Coal India might not get good proposals due to this distinction between listed and unlisted companies. It has also been observed that the valuation of coal assets of listed companies is usually priced higher as compared to those from unlisted entities. g)

gap, should be viewed as strategic acquisition rather than a mere investment. While

Acquisition of coal asset abroad, particularly, in view of widening demand-supply

acquisition of oil and gas asset abroad is viewed as a strategic acquisition, similar In case, there are guidelines for strategic acquisition of oil and gas asset the same should foreign countries are added to the national inventory of energy sources. h) strategic direction from the Government is not yet in place for acquisition of coal assets.

be applicable for acquisition of coal asset also, so that more and more coal reserve in

Based on the deliberation above it is strongly felt that the government has to put

into place policy and guidelines for acquiring coal assets abroad which would explicitly

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delegate the Board of Govt. owned coal companies with the powers and flexibilities akin to those of private entities so that CIL is ensured a level playing field in the race for acquisition of coal assets abroad. 18.5

Suggestive guidelines/steps to facilitate acquisitions abroad:

18.5.1 General matters : (i) creation of logistic and infrastructure in coal bearing countries, particularly in emerging Government of India may consider creating a sovereign fund for investment in

coalfields where this is an opportune moment to consolidate the position of Indian companies so that substantial quantity of coal supply for long-term period can be secured from these coalfields. (ii)

that effective IRR percentage can be attractive enough for investment, particularly for prevailing rate of market borrowing do not appear to be attractive. (iii)

The Govt. of India may consider securing soft loans for Indian coal companies, so

coking and high CV thermal coal assets which are of strategic importance, but which at Acquisition of coal asset needs to be viewed by the Government of India as

acquisition of strategic asset and all the guidelines and policies applicable to acquisition

of oil and gas asset abroad shall be applicable to coal asset abroad. This change in the are Govt. owned, and enable them to successfully complete M&A deals in coal asset and add valuable resource to the national inventory. (iv) policy outlook will greatly encourage the Indian coal companies, particularly, those which

mining and logistic projects are required to implement in a harmonious manner. (v)

and Indian infrastructure companies to work as a consortium wherever investment in coal Government may consider creating a consortium of Indian coal companies and

As a national policy, the government should encourage the Indian coal companies

Indian logistic companies so that the coal minerailway-port value chain is of Indian ownership. (vi)

working groups in coal or activate the existing coal working groups to sensitize the foreign Govts. for allocation of coal assets to consortium of Indian coal companies on

The Government should take immediate steps for creation of new bilateral

nomination basis. The Indian government owned flagship coal company, Coal India entered into with other government owned or private companies to jointly develop the coal assets abroad. The countries will be identified by the consortium of Indian companies and handed-over to the MOC for implementation of the envisaged strategy. (vii)

Limited, may be the lead company in the consortium and suitable arrangement can be

Indian coal companies both government owned and private, who can hold time to time

Government may envisage creation of an Indian Coal Inc., which is a consortium of

meetings under the aegis of MOC so that diverse efforts of these companies can be may take leadership role in steering this Indian coal incorporate under the guidelines of MOC.

converged in a cohesive manner towards enhancing energy security of the nation. CIL

194

18.5.2 Specific empowerment for Government owned enterprises : As part of the national policy it is proposed that the Government of India may accord the them to compete in the global coal market for coal M&A deals and emerge successful: following empowerments/flexibilities to the government owned enterprises to enable To acquire Greenfield/Brownfield coal assets overseas dispensing with the

existing rigid bindings with regard to establishing strategic relationship with listed entities only. The current approach must get replaced by a more professional outlook with definite goal oriented process.

along with the criteria that should be followed for the selection of target coal assets.

Framing guidelines for evaluating coal assets, either Greenfield or Brownfield

India by leveraging its position with the existing coal consumers.

A defined framework to establish itself as a major importer of thermal coal in

track the entire Merger & Acquisition (M&A) transaction. Guidelines in respect of critical financial parameters like Enterprise valuation, IRR/ DCF or multiple approaches need to be formulated and finalized for all future acquisitions.

Tools/Guidelines related to financial parameters for quick decision making to fast

volatility is observed to be significant due to market fluctuations. This would require an approved guideline to safeguard the potential risks involved in any Merger & Acquisition (M&A) process.

There are definite risks involved in any M&A transaction, more so when the price

Merchant

Bankers/Investment

Bankers

(MB/IB)

should

be

accepted

for

appointment on nomination basis so that they can develop and bring lucrative as event based on the success of the deal.

opportunities for our consideration. Fees for the MB/IB could be defined in the guidelines

Capital requirements for setting up infrastructure/logistic support would be

required in some of the target countries which may have to be financed by Sovereign Fund from the Govt.

also be applicable for coal assets.

Govt. Guidelines, if any, for acquiring strategic Oil and Gas assets abroad should

proposed financial powers of the Board related to foreign investment periodically, say, after 3 years or post completion of a successful transaction, whichever is earlier.

It would also be appropriate to include a suitable clause for reviewing the

195

CHAPTER 19 INVESTMENT ENVISAGED 19.1 Review of XI plan

For the XI Plan period, the Planning Commission had approved a capital outlay of Rs.37,100.07 crores (cr.) for the Ministry of Coal. However, the overall outlay for the Ministry of Coal was revised downwad in the Mid-Term Appraisal (MTA) in September,

2009 to Rs. 32,623.55 cr. Against the original approved outlay of Rs. 17390.07 cr. For CIL, revised to Rs.16090.68 cr. at the Mid-Term Appraisal (MTA), it is anticipated that the utilization would be Rs.13,400 Cr. Similarly, against an approved outlay of Rs. 3340 Cr Cr. The original approved outlay for NLC was Rs.15044 Cr, which was revised to Rs. 8475 Cr at the MTA and the anticipated utililsation is Rs. 7904.20 Cr.

for SCCL, revised to Rs.3802.07 Cr at the MTA, utlilization is anticipated to be Rs. 5070

Fund allocation and actual expenditure, including departmental schemes, in the X Plan below:

and the approved outlay of the XI Plan, as per the original document and MTA are as

Fund allocation & actual expenditure in X and XI Plans (In Rs. Crore) Sector Outlay X Plan Approved CIL SCCL NLC - Mines NLC Power NLC Total Dept. Schemes Total for MOC* 14310.00 2113.00 6125.84 8007.64 14133.48 1034.52 31,591.00 Expenditure 7208.22 1450.59 1251.90 1063.32 2315.22 922.95 11,896.98 Actual Approved Outlay 17390.07 3340.00 2826.00 12218.00 15044.00 1326.00 37,100.07 XI Plan Revised in MTA 16090.68 3802.07 2334.39 6140.61 8475.00 4255.80 32,623.55 Anticipated 13400.00 5070.00 1510.71 6393.49 7904.20 1500.00 27,874.20

* Including Departmental Schemes of MoC. The company-wise break-up of the above details is appended in Annexure 19.1 & 19.2.

19.2

XII Plan Projection

The table below provides the summarized assessment of capital outlay for Coal and Lignite sector in XII Plan. Capital Outlay projected for the XII Plan is summarized below:

196

(In Rupees Crores) Sl.No. 1 2 3 Company Coal India Limited Singareni Collieries Company Limited Neyveli Lignite Corpn Ltd. Mines Power Total A Sub Total PSUs 3,481.01 27,710.50 31,191.51 (1,01,941.51) 66,941.51 Capital outlay proposed for XII Plan 25,400.00

+ 35,000.00* 10,350.00

including investment abroad Central Plan Schemes 4 5 6 Promotional Exploration Detailed drilling in Non-CIL Blocks EMSC (Jharia & Ranigaunj Master Plan) by CIL

456.52 974.69 4,950.05 (3,200.05 from CCDA & 1,750 from CIL) 80.00 820.00 600.0 1.25 7,882.51 74,824.02

7 8 9 10

R&D Conservation and Safety in Coal Mines Development of Transport Infrastructure Coal Controller Organisation Sub-total Central Plan Schemes TOTAL

including investment abroad by CIL The proposed Public Sector investment for the XII Plan for supporting their production plan is Rs. 66,941.51 Cr. The outlay proposed for coal PSUs for the XII Plan is Rs. 34,316.96 Cr more than proposed XI Plan outlay (MTA) of Rs. 32,623.55 Crores (excluding Departmental Schemes). The proposed outlay for Departmental Schemes in XII total plan outlay proposed for MoC for the XII plan is Rs.74,824.02 Crores (Rs.66941.51 support). Besides this ad-hoc provision of Rs.25,000 Crores has been made for acquisition of coal assets abroad by CIL and Rs.10,000 Crores for development of coal Plan to be supported through domestic budgetary support is Rs. 7,882.51 Cr. Thus the Cr for PSUs + Rs. 7,882.51 Cr for departmental schemes through domestic budgetary

(1,09,824.02)

blocks in Mozambique. Total plan outlay envisaged for Coal sector, excluding captive coal by CIL.

block development, is Rs.1,09,824.02 Crores which includes investment abroad proposed

197

19.3

Projected Resource Position for XII Plan (2012- 2017)

At the end of the XI Plan, anticipated surplus for CIL will be around Rs. 52741.20 Cr. The MoC for the XII Plan is tabulate below: Companies CIL SCCL NLC TOTAL IR 86995.83 7460.00 9357.45 103813.28

estimated internal and extra budgetary resource (IEBR) position of the PSUs under the (Figures in Rs. Cr.) EBR Nil 2890.00* 21834.06 24724.06 IEBR 86995.83 10350.00 31191.51 128537.34 Plan Outlay 25400.00 10350.00 31191.51 66941.51

* Loan from Financial Institutions Against the estimated IEBR position of Rs. 1, 28,537.34 Cr. the proposed plan outlay of

PSUs is Rs.66, 941.51 Cr. While the resource position of CIL is surplus, the resource position SCCL and NLC is not sufficient to meet the plan outlay, and the companies have to depend on EBR.

Besides, the above investment position for public sector and departmental schemes of MOC, additional investment is required in coal sector for development of captive blocks and washery. Till 2010-11, production commenced in 28 blocks and yielded a production

of 34.64 Mt. At the end of the XI Plan, it is anticipated that 34 blocks will be in operation

and the likely production is expected to be 36.60 Mt. It is estimated that the production from Captive coal blocks would increase to 80.7 Mt (incremental production of 44.55 Mt) in the terminal year of XII plan. It is expected another Rs.20-25 thousand crores will be envisaged level of production.

invested by the promoters of captive blocks during XII Plan period for achieving Thus the total plan outlay proposed for MoC for the XII plan is Rs.74824.02 Crore. (Rs.66941.51 Cr for PSUs + Rs.7882.51 Cr for Central Plan schemes through domestic 19.3 . . budgetary support). The break-up of CIL of the above details is appended in Annexure

198

CHAPTER - 20 POLICY INITIATIVES ON COAL SECTOR REFORM 20.1 Status of implementation of policy /reforms during the XI Plan Working Group report on Coal and Lignite for XI Plan - 2006 Coal Vision 2025 Integrated Energy Policy - 2006 Expert Committee on Road Map for Coal Sector Reforms - 2007 Report of the Committee on National Mineral Policy - 2008

Reports / recommendations of the following committees were reviewed:

The status of implementation of key areas of policy / reforms is as below: S.N 1 Recommendations / Suggestions Opening up of coal sector Status of implementation

Coal mining should be opened to private players

without the restriction of captive use.

Coal Mines
(Nationalization) Bill, 2000 is pending in parliament

Increase FDI caps to 100% and permit it under the

automatic route for coal and lignite mines for captive consumption 2 Captive Coal Mining

Done

Competitive bidding system for allocation of coal

blocks should be introduced.

Under implementation Penalties

/ corrective

Incentives as well as punitive penalties such as

cancellation of block should be evolved.

Captive block holders must be permitted to sell

incidental coal surpluses during the development and operation of a block to CIL.

actions already initiated.

Implemented

Coal blocks held by CIL that cannot be brought into

production by 2016-17, should be made available to other eligible candidates for development with the condition that they be brought into production by 2011-12.

New

list

of

81

Blocks

allotted in the last round came from CIL blocks

Provision for short term linkages in case gestation

period of end use project is earlier

Tapering

linkages

have

been given out as per the recommendation by CIL

Notify in-situ coal gasification and coal liquefaction as

end-uses under the current captive consumption policy.

Done

199

S.N 3

Recommendations / Suggestions Coal Pricing and rail freight rationalization

Status of implementation

Market determined prices based on e-auction upto

20% of the production.

Currently done up-to 10

12% of production

High quality coking and non-coking coals, which are

exportable, may be sold at export parity prices as determined by import price at the nearest port minus 15%.

Largely been implemented

by CIL

Switch over to a fully variable GCV based pricing

system should be expedited.

Still pending for want of a

suitable consensus between CIL and consumers

Rail freight rates for coal transport should be

rationalised. Alternate means for moving coal through coastal shipping, river/ canal movement and coal slurry through pipeline must be promoted where feasible. 4 Coal Linkage Policy

Not implemented

Enter into long term Fuel Supply and Transport

Agreements (FSTA) with bulk consumers.

FSA
decided

executed. to

IR

have with

continue

their existing arrangement 5 Land and R&R

Enactment of legislation for Land acquisition and

uniform centralised R&R policy

The new LAR&R Bill, 2011

introduced in Parliament

Constitution of a task force in concerned state

Secretariat to help companies in acquisition of land to expedite environment and forest clearances and acquisition of land

The suggestion has not

been acted upon

Enactment of central legislation to prevent habitation

over coal bearing areas and establishing suitable authority for implementing Master Plans for Jharia and Raniganj Coal fields 6 Environment and Forest Clearances

No

Central

legislation Authorities for of Master

enacted. established implementation Plan

Fast track clearances of Environment Management

Plan and forestry clearance

The suggestion has not

been acted upon

A Special Task Force, constituted under the Secretary

(Coal) must closely monitor the approval process.

The suggestion has not

been acted upon

Green credits - The present system of mining

200

S.N

Recommendations / Suggestions companies applying for opening new mines having to show equivalent land for compensatory afforestation. They can be encouraged to take up afforestation in advance and given green credits for specified acres of new forest created. These could be used in lieu of compensatory of afforestation when new applications are made.

Status of implementation

Not acted upon

Forest clearance applications should be cleared within

6 months. To minimize delays at DFO (evaluation of cost / benefit and tree enumeration); such work should be outsourced to competent private sector consultants

The suggestion has not

been acted upon

Mining being a site-specific activity, diversion of

forestland for mining should be considered for a longer period of, say, 50100 years or till the exhaustion of the ore body. Further existing leases should be automatically renewed till the ore in the deposit lasts

Not done

At present, the FCA processing takes place at multiple

levels, it is suggested that the levels at the state government be reduced to three, i.e. District Forest Officer, Nodal Officer, and Secretary, State Forest Department. 7 Regulatory Body - A regulatory mechanism should be put in place 8 Government Support

Not done Under consideration

All

the

benefits

and

concessions

extended

to

The suggestion has not

been acted upon

Infrastructure industry may be extended to coal and lignite also. This will attract more investment in the sector.

Ministry of Finance may consider granting special

exemption from Service Tax in respect of site formation and clearance, excavation and earth moving services in coal industry and include coal industry in the exemption clause under Section 65 of the Finance Act.

The suggestion has not

been acted upon

201

S.N 9

Recommendations / Suggestions Coal and Lignite exploration

Status of implementation

Need to continue the schemes of Promotional

Exploration and Detailed Drilling in non-CIL blocks during the XI Plan for expeditious allocation of coal blocks to captive users.

Under implementation

In line with detailed drilling in non-CIL blocks a new

scheme namely detailed drilling in non-NLC lignite blocks has been proposed.

The suggestion has not

been acted upon

Need to identify forest areas as 'Yes' and 'No' zones

for exploration, if the nation is ready to sacrifice the coal resources lying below so called 'No' zones. The exploration in 'Yes' zones may be facilitated with faster clearances.

In 9 coalfields forest areas

have been classified as Category A and B. However approval process has not changed.

Exemption from the need for 'Prospecting License for

CMPDI, SCCL and NLC

The suggestion has been

acted upon

A timebound plan to cover the entire country by

regional mapping in 15 years should be prepared by GSI, CMPDI and MoC.

Progress is slow Process initiated

CMPDIs current capacity of drilling 3 lakh meters per

annum must be raised to at least 15 lakh meters per annum 10 Labour Laws

Coal mining sector should get exemption from

provisions u/s 10 of Contract Labour (Regulation & Abolition) Act (Prohibition of employment of contract labour) 11 Underground mining

Reform
initiated

needs

to

be

Wherever the techno-economic parameters of the

geological underground resource mine, demands related development must of be technology

Action initiated

encouraged by giving incentives to operators 12 Flexibility in Project Formulation and appraisal

To accord greater flexibility in project formulation, CIL

could be granted the status of Navratna Company or

Done - CIL has since been

listed on Indian Stock

202

S.N

Recommendations / Suggestions else the subsidiaries of CIL could be granted the status of Mini Ratna companies.

Status of implementation Exchange. It has also since been status. given a Maharatna

13

Human Resource Management

The manpower planning process at CIL needs to be

thoroughly reviewed and strengthened.

Being carried out Being carried out Being carried out Being carried out

CIL has to revise its promotion policy and evolve

incentives.

CIL should devise a well thought out HRM plan would

gradually groom the employees to take up higher responsibilities

Creation of a SENIOR MANAGEMENT SERVICE for

technical and administrative cadres in CIL and SCCL.

CIL should sponsor a large number of polytechnics

and Industrial Training Institutes in all the districts where there are coalmines.

The suggestion has not

been acted upon

Indian Institute of Coal Management (IICM) in Ranchi

should be given a greater role in functioning as a central Apex training institution for coal industry and all facilities for training in Technical and Managerial aspects of the industry. 20.2 20.2.1 Key reform initiatives proposed in XII Plan Exploration and Project Formulation

IICM

has

taken

some

initiatives, but more needs to be done

Coal exploration to be speeded up manifold to ensure availability of more explored CMPDI capacity as well as involving private sector in this respect are being made:

coal blocks for mining by private and public sector. Multiple suggestions of enhancing

Multiple technical agencies to undertake coal exploration effort. Apart from CMPDI, MECL and State Directorates, more players should be brought in and current capability of exploration agencies should be enhanced for increasing exploration effort.

A timebound plan to cover the entire country by regional mapping in 10 years should be prepared by GSI. CMPDIs current capacity of drilling 3 lakh meters per annum must be raised to at least 15 lakh meters per annum.

203

CMPDI

should

be

asked

to

speed

up

detailed

exploration

by

engaging

institutions/companies, selected based on competitive bidding, which could take up exploration of the blocks under the Indicated and Inferred categories. The block corresponding cost may be recovered from the prospective allottees for respective

New exploration technologies such as geo-physical logging, satellite imagery should be extensively used for this purpose A countrywide study needs to be carried out to classify the total coal resource in the country as per JORC / UNFCC Classification. For this purpose a high level task force should be set up to carry out this activity in a time bound manner.

There should be no necessity for FC for exploration, provided the exploration agency commits to necessary restrictions as may be imposed by MoEF. The number of boreholes can be taken as per UNFCC guidelines.

Need to strengthen the institution of RQP through greater scrutiny of their capabilities. Further, either Coal Controllers Organisation or else proposed Coal Regulator should be given the mandate for monitoring the implementation of the approved Mining Plans.

20.2.2

Clearances and Licenses Environmental and Forest

To expedite clearances a co-ordination committee at the Centre and State level should be set up (Single window concept) with senior representation from the concerned departments.

A Special Task Force, be constituted under Secretary (Coal) to closely monitor the approval process. An Apex Committee of Secretaries headed by the Cabinet Secretary, consisting of the Secretaries from the Ministries of Coal, Power, Environment and Forest, Finance, Home, Railways, and Planning Commission, review the process of important matters related to environment / forest clearances, land acquisitions, possessions, law and order, etc.

To ensure a leaner, transparent and efficient approval process, there is a need to ensure Forest and environmental clearances in a time-bound manner. Also the number of levels and stages should be reduced.

20.2.2.1

Specific recommendations in respect of forest clearances include:

FC applications should be cleared within 6 months. DFO work - evaluation of cost / benefit and tree enumeration to be outsourced to competent private sector consultants

Levels for granting Stage II FC clearance should be reduced, as it is only compliance to the in principal approval. Diversion of forestland for mining should be considered for a longer period till the exhaustion of the ore body.

204

To avoid delays in FC levels at the state government be reduced to three, i.e. District Forest Officer, Nodal Officer, and Secretary, State Forest Department. Green credits - Coal mining agencies can be encouraged to take up afforestation in advance and given green credits for specific acres of new forest created to be used in lieu of compensatory afforestation when new applications are made. Green credits should be allowed to be traded openly and anyone should be allowed to undertake afforestation anywhere in the country. State Government Departments.

Coal companies should hand over forestlands and revenue forestlands to respective State Governments to be directed to complete the process of determining and months.

conferring the rights of scheduled tribe and other traditional forest dwellers in six

Till 31.03.2011, applications for environmental clearances can be filed independent to the status of forestry clearance. Now for seeking environmental clearance involving forestland, in-principle approval of forestry clearance is a prerequisite. This needs to be done away with.

20.2.2.

Specific recommendations in respect of Environmental Clearance are:

Projects for benefit of XI & XII Plan to be taken at priority or if necessary, a Special Task Force with adequate powers may be set up to examine environmental related for production at least 25% more than the initial required mine capacity. issues for such project. Further, environmental clearance may be sought and awarded

There is wide disparity in environmental performance of coalmines in the country. A system of third party audit or the adoption of a Green Rating System can bring out the best practices and establish benchmarks for those not doing so well to improve.

EC once given should be valid so long as there is no expansion or major modifications in the mine/washery; it should not be required afresh merely because lease is being renewed.

20.2.3 Clearances and Licenses Land Acquisition and R&R

Enactment of a central legislation to ensure uniform R&R policy and speedy land acquisition Delineation of coal bearing areas in each state and to put the information on the concerned State Govt website should be carried out in a time bound manner by MoC. for setting up any industry / infrastructure The State Government have to obtain clearances from MoC before issuing any license

Enactment of central legislation to prevent habitation over coal bearing areas Specific recommendations in respect of land acquisition process are: Coal companies should actively restore post mining land into agricultural land with some effort and investment.

205

Companies should be encouraged to take up land for mining on long term lease to be returned back on completion of mining to the land holders Tripartite Committee of the concerned District Collector/Special Land Acquisition be formed to review and resolve problems in acquisition and handing over of land. Officer, representative of company official and representative of the landowners may

CBA needs to be reviewed and modified to make it more growth oriented

20.2.4 Captive Coal Mining

Appropriate measures for increasing coal availability from captive coal mining blocks by amending the Coal Mines Nationalization Act. Future blocks should be allocated on the basis of a transparent bidding process, with bidders placed on a similar platform. Multiple suggestions have been made in this respect:

Blocks to be brought for Competitive bidding should be free from factors like presence of wild life sanctuaries etc which will stand in the way of the Clearance. Time allowed for commissioning should be suitably revised taking into account the and time taken for land acquisition and execution of lease agreement. ground realities in respect of prospecting license, forestry & environment clearances Prospecting license should be issued along with the block allocation letters. Time period of 2 years for completion of exploration should be counted from the date of grant of forestry clearance within a certain time limit. Power Projects having cost of coal, as a Pass through item should not be allowed to participate in the bidding process. A bidders mining experience should be considered during the qualification stage. The expeditious development of the Block

mining experience of the mining company will help the consortium in ensuring

A Member of the Consortium should be allowed the advantage of the strength of its promoter/associate company in the Group for meeting the qualification criteria. The bidding document should contain all available information including geological information, data on Rail and Road connectivity; Extent of Forest Cover; Presence of power sub station etc water bodies like River, Nalah, Lake etc.; Human Habitation; Nearness of high tension

20.2.5 Captive / MDC / Other Government Company block owners A substantial investment in mining activities would also be made by companies who have been allotted blocks under captive or government dispensation, as production is expected to rise substantially from these blocks in the XII Plan. One of the key challenges being faced by these block owners in development of their blocks is their inability to create / access infrastructure for evacuation of coal to their end use plants. It is therefore, desirable that an agency should be created Special Area

206

Development Authority in consultation with State Governments so that Master Plans for creation of an institutional mechanism for planning and development of common infrastructural facilities for use by all the block owners:

these facilities can be prepared coalfield-wise. The committee therefore recommends

A Local area Development authority should be created with participation of block allocates, coal mining companies and respective state governments to develop comprehensive plans for infrastructural facilities and requirements in each identified coalfields areas.

The authority shall award the development and operations of the said infrastructure facility on BOO basis to a developer on a PPP basis. The developer is expected to take defined revenues for each unit of capacity, which will be paid for by the users of the facility. A pre-defined (standardised) User Agreement based on capacity would be executed between the developer and the captive block owners for the same A Regulator may be designated to monitor the performance of the PPP Developer and also adjudicate on any dispute arising between the developer and the users Where CIL is also operating blocks in the same coalfield and has developed infrastructure; wherever surplus capacity is available in the infrastructure developed the authority against the payment of user charges fixed by the regulator. In certain by CIL, the same should be made available for use by the block allocatees, through situations, the capacity of CIL infrastructure can be increased by making marginal investment / modification / addition thereto. The same should be made through the authority on PPP basis and the capacity so created, can be shared by block allocatees. Right of Way land in many cases.

This will avoid creation of parallel networks and may also provide ready access to

20.2.6

Regulation and Governance in Coal Sector Industry structure

The coal sector regulator should be set up on a priority basis National Coal Council - Advisory Board, which may be called the National Coal Council in which all stakeholders are duly represented to be set up headed by Minister for Coal.

Infrastructure status should be extended to the coal industry. Duties on capital goods imported for coalmines must be lowered to put them at par with duties on imports for other energy sub-sectors.

Amend the provisions of Contract Labour (Regulation & Abolition) Act, 1970 to facilitate offloading of restricted activities in coal mining for improved economics of operations.

Coal mining should be opened to private players without the restriction of captive use. To this end, the Coal Mines (Nationalization) Bill, 2000 should be passed.

207

Conservation of Coal resources - A high level task force should be set up to formulate a set of principles / rules for ensuring conservation of coal resources / maximising the exploitation of resources from opencast and underground means.

Coal and CBM / CMM - Need for treatment of Coal and CBM exploitation in an

integrated manner and not as an independent energy sources as being done currently leading to conflict situations. MoU between Coal and Petroleum Ministry to be reviewed and a comprehensive policy on CBM along with coal mining needs to be evolved

Given the high commercial risks and large capital investment requirement even to assess the viability; UCG should be provided similar fiscal initiatives as available for CBM.

It is recommended that either CMPDI is made an independent organization or an independent organization be created to develop and maintain the repository of all geological information in the country on the lines of CEA or DGH.

sovereign fund out of which loans can be made available to the Indian Companies interested in acquiring overseas Coal Assets.

For acquisition of coal assets outside the country, Govt. of India should create a

For Public sector companies an empowered group should be created so that proposals for Asset acquisition abroad can be examined by this Group and decisions taken.

20.2.7 Development of Underground Mining:

Coal

companies

should

develop

comprehensive

plan

for

improving

their

performance in underground mines Government should consider options such as cost plus pricing, cross subsidies, to improve the potential returns currently available from underground mining activities Government Companies should also be encouraged to create JV arrangements for partner takes responsibility for the development and operations of the mine and CIL shares a premium based on a transparent bidding process exploitation of high value UG reserves such as Coking coal properties where the JV

For encouraging UG mining, fiscal incentives like exemption from customs / excise duty for equipment, any applicable cess and exemption from payment of NPV for forest cover should be provided.

208

CHAPTER-21 MARKETING STRATEGY & MECHANISM FOR GRIEVANCE REDRESSAL 21.1 Background:

Demand supply rationalization remained a critical area for the nationalized coal sector of India since its inception due to several reasons. Even after allocation of a large number of coal blocks to consuming sectors on the one hand and bringing coal under open

general license in the liberalized era, the emerging demand-supply gap continues to be the most vital issue for deciding all marketing related strategies till date. The most Distribution Policy (NCDP), again concentrating only on distribution of coal. important strategic decision taken in respect of marketing in XI Plan period is New Coal Distribution will continue to occupy the centre stage of the marketing strategy document.

Nevertheless, product and technology development for economic use of coal is also of Country. Movement logistics is another key area of coal marketing strategy of which optimum utilization of logistics resources, customer service and

vital importance to ensure sustainable growth of coal sector and energy security of the source rationalization is a major component. Application of information technology for management including redressing grievances need also to be included as important components of the marketing strategy document. 21.2 relationship

Product positioning & product development strategy

A. Product positioning: a) Positioning the Low ash indigenous coal: Grades A to C with GCV ranging between +6400 to 5400 Kcal/Kg can be considered as import substitution grades of coal because of comparable heat value with the coal being imported in the country.

b) Positioning the high ash coal (D to F grades): Leaving the requirement of the (including captive power plants) aside, the balance quantity by the end of XII Plan may be offered in the market after processing.

pithead consumption centres of about 200 Mt, essentially those of power sector

c) Coking coal: The existing positioning strategy for varieties with already

established metallurgical use may continue in the XII Plan. However, considering the increased dependence of steel plants for imported coal, it will be of national importance to find use of at least a part of the non-linked washery (NLW) grades of coking coal in steel making. While technology development for using NLW coal in steel sector will be the thrust area in XII Plan,

d) Washery by-products: Middling of coking coal washeries is already an established

product for catering the fuel need of the power sector. Proven technology is available worldwide for FBCC boilers for using fuel of 70-72% ash content. Therefore, washery slurry and reject based power generation units may be

209

promoted in XII Plan. Government may take policy initiative to compel washery

promoters to have slurry/reject base captive power plant. Normally, no fuel because of higher efficiency of the washery, the heat content in the reject/slurry may be at sub optimal level. required as fuel support can be procured from e-auction platform. Therefore, such initiative does not require any permanent coal procurement arrangement.

supplement is required for running such plants. However, in a few instance, In those cases the small quantity, that may be

B. Product development strategy: The product development strategy essentially needs to fuel combustion equipments.

take care of the issues covering improvement in product features and improvement in

a) Improving product features: i) Reducing ash content and bringing consistency in coal quality: Beneficiation of coal:

Beneficiation of coal is of vital importance for bringing consistency in coal quality and reducing ash content and. As reported by Coal Controllers Organization, the existing washing capacity of the Country is to the tune of 126Mt, 30Mt for coking and 96Mt for

non-coking coal. CIL has already taken steps to have captive washeries for all new coal projects of 2.5MTPA & above production capacity and not linked to captive consumers. It 150MTPA, including the existing washing capacities of about 39Mt. Thus actions have already taken for creating total washing capacity of 237 MTPA, 47Mt coking and 190Mt non-coking coal. Out of the total requirement of 680.08 Mt coal for power utilities, it is is expected that in the first phase, by 2014-15, CIL will have washing capacity of about

estimated that about 104 Mt would be required for power plants located at pitheads. Similar approach needs to be taken by other coal producers as well.

There is a plan for increasing washing capacity substantially in the second phase by CIL.

ii) Despatch of sized coal: While coal is normally subjected to crushing and sizing before dispatch, in some cases, particularly during peak production months, ROM coal is dumped in make shift stockyard. During XII Plan, Coal Companies shall deploy mobile dispatch all the Railway sidings would be declared fit for loading both BOXN & BOBR rakes

crushers for these stockyards before dispatch. In order to ensure 100% sized coal

iii) Reducing the bandwidth of existing coal grading system: This will improve consistency of coal quality. Coal companies will have to be extra vigilant for maintaining supply of coal as per grade, improving quality of coal.

b) Improved production technology: Under ground mining and use of surface miner in opencast mine are likely to bring substantial improvement in coal quality. These technologies will also, to some extent, be capable to take care of the sizing problem.

c) Improvement in combustion equipments: The emerging gap between demand and indigenous availability calls for efficient and economic use of coal. Combustion equipments also need to be capable for handling variant blending mixes of imported and

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indigenous coal. A strategy initiative needs to be taken for encouraging use of upgraded technology.

recommendation for issuance of letter of assurance, supply from specific sources as per the requirement of the technology, fixed tenure price escalation compensation etc.. may be introduced during XII Plan period. 21.3 Pricing strategy:

Innovative rewarding schemes like, green channel

promotion and

Having moved away from the normative cost-based coal pricing during the administered

price regime with annual revision of price on BICP formula to obviate the inflationary pressure on coal sector, in the post decontrol scenario since 1996 (partial) and the year 2000 (full), the enhancement in coal prices has been competitively low when seen with

other energy inputs like oil products, international coal prices, growing open market coal shared a portion of its cost efficiency with the consumers and the increase in coal price had been consistently less than the level of inflation.

prices as well as the inflationary trends in the country. In fact, PSU Coal Companies

After import of coal was brought under open general license and e-auction was introduced, two additional benchmarks were available for price determination. The landed coal of equivalent heat value and E-auction provided a fair idea about the price price of imported coal could provide a platform for comparison of the price of indigenous acceptability level of the market. Using these two important benchmarks, recently the

concept of dual pricing has been introduced; one for consumers in the regulated sector (i.e. power, fertilizer and defence) and another for consumers in the non-regulated sector (i.e. sectors other than power, fertilizer and defence). Since the price of end products of the coal consuming industries in the non-regulated sector are quite volatile and are

driven by demand supply scenario, prices of coal for supply to the consumers in the nonregulated sector have been kept at 30% higher than the price of coal for supply to the consumer in regulated sector. Further prices of Grade A and Grade B of coal have been fixed on import parity basis for supply to all the coal consuming sectors. The economic

rationale behind increasing the prices of Grades A & Grade B coal is that the A & B grades

of coal are import substitutes and have demand even at import parity price. In fact, this pricing strategy has been in line with the findings of the Integrated Energy Policy (IEP), wherein it was recommended that:

High quality coking and non-coking coal which is exportable should be sold at export parity prices as determined by import price at the nearest port minus 15%. the Steel Industry. However, since substantial amount of coking coal is imported, domestic coking coal should be priced at import parity price. This practice is currently being adopted for supply of good quality coking coal to

the notified price and the market price of coal. Availability of only 10% of production been, in a few cases, providing impetus for diversion of coal to the grey market. The

Even after the recent efforts of Coal India, there has been a substantial margin between

through e-auction is not sufficient to bring price equilibrium in the market. This has pricing strategy, therefore, should, as far as practicable, be gradually driven by the

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market force. This has also been recommended by IEP. Further, the effective price the blocks allotted for captive use. The market driven price for all deregulated sectors, e-auction platform. 21.4

concession being offered at present is acting as a deterrent in increasing production from the size of which is about 20% of the total coal market of India, should be brought under

Distribution strategy:

The New Coal Distribution Policy: Persisting problems in the extant distribution policy led to a series of litigations between consumers and coal companies. Ultimately the Apex Court, in one such dispute, ruled that Government should come out with a New Coal Distribution Policy taking view of all by the Government with the following terms of reference: the stake holders. A committee under the Chairmanship of Secretary (Coal) was formed Review of existing classification of consumers into Core and Non Core sectors.

Suggest a Mechanism for supply of coal to consumers in different sectors. directly from coal companies.

Mechanism for supply of coal to small/tiny consumers who are unable to access coal Strategies to bring about transparency in coal distribution by use of Modern Technologies including Information Technology.

was approved by the Government and the New coal Distribution Policy (NCDP) was announced on 18th October 2007.

After several round of discussions with all stake holders the proposal of the committee

Salient Feature of the New Coal Distribution Policy: Core & Non Core classification done away with Defence & Railways to get full requirement at notified price. New Classification - keeping in view the regulatory provision Power & Fertilizer Sectors to get 100% of normative requirement through Fuel Supply Agreement (FSA) at fixed price to be declared/notified by coal companies.

All other consumers to get 75% of normative requirement through FSA. to get coal from Agencies to be nominated by States/Union Territories. coal supply.

Small & Medium Enterprise Sector having requirement up to 4200MT per year All existing linkage holders are required to execute FSA for continuation of For new commitments to Power, Cement and Sponge Iron sectors - CIL to Linkage Committee

issue Letter of Assurance (LoA ) after approval of applications by the Standing For other sector CIL will be responsible for issuance of LoA respectively.

LoA will have validity for 24/12 months for Power/other consumers

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LoAs to be converted to enforceable FSAs after completion of stipulated CIL, to meet full domestic requirement of coal under FSA, even by resorting to import, if feasible 10% of the annual production of CIL to be earmarked for e-auction Introduction of forward e-auction scheme to provide a long- term coal sourcing platform for industrial consumer Supply to Steel Plants on FSA on the basis of import parity price. milestones/conditions within the given time.

Discipline in economic use of coal is a thrust area.

Supply Agreements (FSA) at the same time it has put the supplying coal companies on an onerous task of meeting the entire domestic coal demand under the FSA, if need be, even by resorting to import.

While the NCDP envisaged all supplies to be regulated through enforceable bi-lateral Fuel

The gap between the domestic demand and growth in indigenous coal production has been steadily widening, even after introduction of commercially enforceable FSA regime. Due to widening gap all new projects including those covered by SLC (LT) are not being issued fresh recommendations for issuance of Letter of Assurance. Initiatives of PSU coal availability is yet to find definitive response from the consumers. companies to import coal for bridging the gap between demand and indigenous No foolproof system could be developed to ensure discipline in economic use of coal, a thrust area of the NCDP. In fact, the differential between the notified and the market price of coal has been the continuous motivator for diversion of coal to grey market. In view of the above, the Working Group observes the following: a) The motivator for diversion of coal being directly proportional to the gradients in price differential in the market, bringing more numbers of consuming segments under the common platform of e-auction to minimize price differential which may bring discipline in economic use of coal. b) About 80% of the indigenous demand is from regulated sectors, viz. Power &

Fertilizer. The remaining 20% of the consumers are purely operating in a market driven

price regime. Their business decisions are taken purely on the prevailing market condition. In the milieu of scarcity, it is therefore necessary to develop a system where in economic use of coal. only the most deserving would get access in coal source which only can ensure discipline c) Integrated Energy Policy (IEP) also recommended that 20% of the indigenous production should be offered in e-auction. d) Bringing all deregulated sectors under e-auction platform would provide level playing field to all consumers old and new, without any specific consuming sector-wise preference. e) The additional availability of coal in e-auction platform is likely to correct the aberration in the pricing mechanism

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21.5

Logistics strategy:

Presently coal is sold on Free-on-Rail (FOR) colliery basis; commercial implication of which is that onus of arranging transportation is the responsibility of consumers. In absence of a tri-partite agreement, both for indigenous and imported coal, between Coal consumption points.

Companies, Railways and Consumers, the existing FSA cannot ensure coal reaching the In spite of huge gap between demand and indigenous availability, pithead stocks at coal a few power stations have been receiving coal much higher than the annual contracted quantity others are persistently under coal stock crisis, the reasons of which are embedded in operational conveniences of Railways and or inept unloading facilities at the consumption points. Transport logistics happens to be a major bottleneck for effective implementation of the distribution policy. Ultimately, the entire system can run on sustainable basis on the efficiency of each stack

companies have been accumulating for consecutive years. There are instances that while

holder, i.e. coal companies, transporters and consumers. The constraints and shortcomings in the arena of each stakeholders ambit have multiplier effect on the overall system. In view of the above, following issues need to be resolved during XII Plan period: a) Implementation of tri-partite Fuel Supply & Transport Agreement for all rail-borne FSAs b) Rationalization of coal sources for optimization of transport capacity both for indigenous and imported coal c) Investment by coal companies in creating logistics infrastructure in the field of railway track, rolling stock, port capacity d) Developing and augmenting alternate mode of transport like inland waterways, coastal shipment for easing out burden on railway system e) Promoting logistics companies through PPP Model by major stakeholders in Railway system. Investment in creating facilities and developing core competence coal would also be a priority area. 21.6 Introduction of IT enabled Sales Management upcoming coalfields for creating track network and transfer points with Indian

in end to end logistics solution for movement of both indigenous and imported

In todays changing business environment the enterprise needs to extend presence all the way to suppliers, business partners, retailers and end customers - internet provides less expensive way to adopt a multitude of business tools like ERP, SAP, SCM and CRM to effective transparent business mechanism.

increase the business horizon by adopting e-commerce as the way of efficient, cost Coal sector though slowly but have lately picked up to adopt the benefit of the ICT to harness its full potential- it further required to reduce human interface on day to day business activities and to harness the leveraging technologies to extend the benefit to all

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consumers and stake holders . A few advantages of the implementation of the information technology in coal sector could be: Extending 24 X 7 operation Global Reach: The service can be widened to coal consumers across the length and breadth of the country

Reduction in cost to service the customer Building an extended enterprise connected with all stakeholders- Customers, bankers, transporters, statutory authorities

Improved customer service (CRM) Development of technology oriented customer interface Capturing database on customers buying behavior

More than 50% of the coal is moved by Indian Railways catered by different Railway Zone effort in proper co-ordination to match the demand for coal evacuation and at the same

with their zonal, divisional and central controls at different places necessitating a huge time to protect the commercial interest of all the stakeholders Railways, Coal Companies and the Consumers. In spite of the dedicated efforts of both Railways and coal coal stock due to non availability of wagons again in the other point wagons remain idle companies often it is seen the movement is uneven resulting somewhere accumulation of for non availability of loadable stock at sidings. Information technology has a great management supported by Business decision making applications integrated with the

potential to address the issues related to logistics bottleneck. Proper supply-chain production system, transporting system including the FOIS (Freight Operation Information System) of Indian Railways may prove to be a real value addition for coal companies, railways and consumers. Real time monitoring would enable every stake holders to take inefficiency. Additionally, implementation of comprehensive IT system with a strong information the best advantage of the available resource minimizing the avoidable cost on system

network backbone through dedicated communication lines would provide opportunity to

utilize multiple specialized Business Support systems such as Business Intelligence (BI)/ Information Management system (PIMS)

Decision Support system (DSS), Corporate Performance Management (CPM) Tools, Plant

In view of the above, during the XII Plan period following should be aimed at: 1. Computerization and bringing all weighbridges within the network for capturing the elementary input by recording the consumer name, invoice particulars, which shall be transaction to be monitored at management level in the way it is required. cleared online by the Financial transactions thereby creating an unique commercial

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2. Capturing Real time stock position and making the information accessible by all the

stakeholders daily loading end stock position is essential for optimizing the resources to despatch the coal in the minimum possible time frame. Availability of such information applications. would automatically provide a dispatch solution through decision support system (DSS) 3 Integration of entire rail dispatch system with the FOIS of Railways: this will add value in the supply chain management both for the supplier and the consumer providing congestion etc to take a business decision saving substantial cost. opportunity to monitor real-time delivery position and wagon availability, route 4. GPS enabled Truck Dispatch System when integrated in the main system shall

instantly make viable the stock position for loading for better logistics management.

5. Teleconferencing : Corrective measures often comes too late due to lag in communication between the operation level and decision making level resulting in loss in terms of financial loss and loss in credibility . Proper IT system would make it easy to

identify the accountability at each stage meaning better management control and improved efficiency through audio-visual communications even in places located remotely. Under the present trend of converging technologies the progress made in Railways, Banking and other similar sector should be considered as bench mark and in order to imbibe professionalism in all spheres of management the industry is required to harness the ICT with right earnest and put in place right system to confront the high technological obsolescence in the field of technology and to remain contemporary always. 21.7 Customer Relationship Management Strategy (CRM): CRM has evolved as one of the key business function for any growing industry, though been realized in almost all sphere of activities and established as an important tool to sustain market share and improve consumer satisfaction. Presently, the CRM in coal marketing is limited to interaction with the customers in the periphery of FSA clauses. In a few isolated cases, particularly where the customers are located in the pitheads, like NTPC power plants or a few integrated steel plants or other bulk consumers getting supplies through captive mode of transport, the supplying coal schedule of captive transport, status of plant operation including coal handling. However, there has been no structured CRM strategy being practiced in the industry. The major objective of the CRM strategy would be to: Prepare customer dossier with all relevant particulars including demographical details in a comprehensive data base driven system Allocate unique identity to all consumers with classificatory codes Matching demand pattern with the projected production and linked sources companies have been maintaining close liaison in respect of stocks at plants, placement more relevant to service sector and FMCG industries but the effectiveness of CRM has

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and create automatic log-records of all exchange of instructions and compliance. dispatch and electronic invoice/RR weighment records. activities and failures.

Introducing monitoring system of milestone management of letter of assurances

System integration with payment gateways railway weighbridges- wagon/truck System generated messages/alerts to consumers and or suppliers regarding each Integration with after sales services wherever applicable like quality management report, complaints and grievance redress mechanism.

Customers may be classified in two broad groups as per their commercial importance, profile and kind of back-up service requirement to decide CRM strategy for each groups, such as i) ii) Major accounts Other accounts

Relationship management for each major account is essentially to be tailor-made preferably under responsibility of Group head and down below to account heads. For example, Group-Head NTPC account shall be responsible for all supply issues to NTPC

power stations - account heads under the NTPC Group are persons responsible to track

each power station under the NTPC group monitoring supplies from each coal companies. Since supplies are from multiple sources, for proper coordinated actions, the CRM needs to be handled from the Corporate Headquarters, particularly for major accounts. Smaller engaging services from professional call centers.

accounts would be mostly served through web-based information technology and

offer/indent to the Railways, allotment granted by the Railways and also supply and loading of wagons on his account. Similar facilities in respect of road dispatch like truck

respect of providing routine operation related information like

The call centre should be capable to handle fulfilling expectations of consumers in on day-to-day

placement schedule, position of loading etc. This would not only remove traffic

congestion at the colliery but would also reduce freight cost of the consumers on account made by him from time to time and adjustment on the same by way of bills raised by the coal company and balance that is available at any point of time.

of no demurrage. Consumers may also be provided information in respect of payment

technological support, it can be used as a gateway for all e-commerce service. Quality technologies. 21.8 Development of Grievance redressal mechanism: Procurement of coal by the consumers needs meticulous planning and follow up action in Companies from time to time. The major steps involved for procurement of coal are:

The CRM system has the potential to build up strong customer base. With proper

control, payment-refund and other checks and balances can be ensured with leveraging

the framework of policy, procedure & systems laid down by the Government or Coal a) Application for long term coal linkage to the Standing Linkage Committee (SLC).

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b) On the basis of the recommendation for issuance of LOA by SLC (LT) furnishing c) Producing requisite documents for signing FSA for supply coal within a given time schedule financial guarantee and achieving stipulated milestones in a given time frame

In the entire gamut of activities and procedures relating to procurement of coal there are

multiple interfaces starting from Parent Ministry for approval of the project to Ministry of

Coal for recommendation of LOA and Coal Companies for converting LOA to FSA for supply of coal and finally Railways for movement of coal from Collieries to consumption Centres. Again interfaces at Coal Companies and with Railways are taking place at multiple layers from the Corporate Headquarters of Coal Companies or Railway Board for movement of right quantity of right quality of coal policy guideline to Area level at Collieries and Divisional level at Railways for physical at right time at the consumption

centres. The exposure of risk for the consumer start from the process of getting linkage materialized in terms of quality as well as quantity. In this multitude of interfaces a very effective and transparent platform for dispute time information flow and timely settlement of all transactions is very much essential.

and entering into FSA through the mechanism of LOA and continues till the supply is

resolution and grievance redressal for delivery of prompt and effective services with real The essential feature of such platform should be a computer based mechanism integrated basis for taking prompt remedial actions and providing feedback to the consumers.

with all the interfaces involved in the process of delivery with data available on real time The grievances of the consumers need to be classified on the basis of the nature of complaints. Again these complaints can be re-grouped on the basis of the identified action points for redressal. While the action points would be delivering the redressal, the level on action taken for each of the complaint.

system would ensure that a mechanism is available for on line monitoring up to the apex Apart from grievances, the consumers should be extended the facility for on line rating of parameter. Consumers rating and the nature and action points of specific complaints corrective actions.

services extended by each level of customers interface on the basis of the predetermined received would be used for creating a database to identify the erring points for initiating At the base level complaints logged on registered login and password based system may

be acknowledged through SMS. Each complaint may be tracked through its registration within stipulated period creating a log for response from each level which can be accessible by the registered complainant. The call centre proposed for CRM may also take care of registering customer grievances.

Apart from on line complaint registration system, customers grievance can also be addressed through the 24x7 Customer care cell proposed for introducing CRM. In view of during XII Plan period: the above, following is suggested as the action plan for customers grievance redressal 1. Introduction of on line grievance registration and response system

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2. Creating on line retrievable database for monitoring purpose across the hierarchy of the management of coal company 3. Complaints which could not be redressed/responded to within the scheduled for fixing responsibility for delay

timeframe are to be separately listed and forwarded to the Competent Authority

4. Introduction of online customer rating system

5. Formation of a fixed tenure adjudicating/reviewing Board with adequate decision making power comprising of representatives from coal companies, Ministry of coal, Railways and ministries of important consuming sectors.

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CHAPTER-22 RECOMMENDATIONS Coal demand & Supply 1.0 In the perspective of widening gap between demand and indigenous availability of coal, time bound fast-track implementation of coal projects should be given highest priority. Necessary stimuli needs to be imparted to the system to ensure production from captive coal blocks within the specified time period from the date of allocation. 2.0 Removal of logistics bottlenecks is one of the most critical areas in supply side management. Project-wise task force involving all stakeholders to monitor synchronization of coal production, evacuation and consumption. 3.0 There had been no substantial progress in the execution of the identified critical railway infrastructure projects of XI Plan. These projects need close monitoring during XII Plan to ensure smooth evacuation of incremental coal production from the potential coalfields. 4.0 Developing inland waterways and giving stress on coastal shipment for movement of imported and indigenous coal may be given due importance for easing out stress on the railway capacity. 5.0 Railway connectivity between ports and hinterland consumption centres would be of vital importance for movement of imported coal. 6.0 Improvement in coal utilization technology including development of versatile combustion equipments capable of using different proportion of indigenous and imported coal in blends may be given due attention for demand side management. 7.0 Necessary amendment may be brought in the existing distribution policy in line with the recommendation of the Integrated Energy Policy to allow market dynamics managing the demand side for all non-regulated consuming sectors. 8.0 The increase in lignite production during XII Plan is planned in line with the projected demand. Synchronization between the projected demand and production, therefore, needs to be closely monitored for achieving planned growth in lignite sector. Coal quality & beneficiation 9.0 The process of implementing all the identified new washeries needs to be expedited.

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10.0 In order to ensure supply of washed coal to all TPS located 500 Kms away from the mines within the next three years, washing capacity needs to augmented to matching level. 11.0 100% crushing and sizing of coal before dispatch must be ensured by coal companies within next two years. 12.0 Auto mechanical samplers to be installed at all dispatch points/mines within XII Plan period. 13.0 Mobile laboratories need to be deployed for coal sampling and analysis. 14.0 Deshaling of ROM coal, if not complete beneficiation, needs consideration wherever feasible. 15.0 Strengthening/ Renovation and modernization of existing coking coal washeries for improved yield and to match the raw coal feed quality needs immediate consideration. 16.0 Augmenting coking coal and LVMC coal production to feed the washeries needs proper attention. 17.0 New washing technologies including dry coal beneficiation needs consideration. 18.0 Utilization and disposal of washery rejects in an environmentally acceptable manner should be given due importance. 19.0 Rail evacuation facilities for new washeries should be considered at the time of preparation of Project Reports. 20.0 Coal sector should switch over to GCV based system in place of UHV based system for trading of non-coking coals. 21.0 The current rate of SED of Rs.10 per tonne was last revised in June 2003 and this needs to be suitably enhanced for addressing the proposed funding of the Master Plan. Exploration of Coal & Lignite 22.0 Promotional Exploration for coal and lignite has been demonstrably effective in increasing the national Coal and Lignite Inventory at a faster rate and should, therefore, continue till the coverage of coal/lignite fields is broadly completed.

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23.0 For expeditious allocation of coal blocks to captive users, the Non-CIL blocks need to be explored in details on priority at faster pace. exploration will require outsourcing of jobs. 24.0 The creation of a coal/ lignite resource data base to provide Net-accessible resource information needs to be continued for their successful completion and maintenance. 25.0 It is recommended that Developmental Exploration in working mines should be given adequate attention and organization to help reduce surprises and, thereby, the cost of mining. 26.0 The assessment of CBM resources needs to be continued in XII Plan. In addition assessment of Shale Gas potential in coal formations of different coalfields may be taken up. 27.0 The present guidelines more or less satisfy the requirement of regional exploration for coal as at least oneborehole per sq km is required to categorize the resource under 'Indicated' category as per the ISP. However, 15 to 20 boreholes are needed to be drilled per sq km for open cast and underground prospects, respectively, to Prove the resources to the desired level of confidence for mine planning. The above guidelines do not address the requirement of detailed exploration and need to be revised to allow 15 to 20 boreholes per sq km immediately. 28.0 CMPDI, SCCL & NLC are premier organizations in Detailed Exploration of coal. Hence they may be included in the list of organisations exempted from seeking 'Prospecting License' as is the case with GSI/MEC. 29.0 A total of 21 blocks have so far been identified for CBM exploration and exploitation, covering an area of about 8800 sq.km. Majority of these blocks are available in the deeper part of different coalfields which have not been covered by Regional and Detailed exploration. In view of the fact that some of the CBM blocks have already been offered and the remaining are in the process of offering, a policy decision needs to be taken whether Regional Exploration and Detailed Exploration can be taken up in such identified CBM blocks to assess the national inventory of coal. 30.0 The increase in exploration activities entail enhancement of drilling capacities as well as technical support system both in terms of drilling equipments and manpower (both Geology & Drilling). Modernisation in Drilling Techniques, Data Acquisition & Transmission, Data Storage & Retrieval, Data Processing & Deposit The increase in detailed

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Modelling Resource assessment and Plan/Report Preparation is considered necessary to achieve the targets set for 12th Plan. 31.0 With the allotment of a large number of regionally explored coal & lignite blocks to private entrepreneurs it has become necessary to evolve a mechanism of data flow from these entrepreneurs to the GSI through CMPDI (which is the nodal agency for detailed coal exploration in the country other than SCCL areas) and NLC for lignite block (which is the nodal agency for detailed lignite exploration in the country) in respect of exploration activities undertaken by these entrepreneurs to upgrade the resources for updating of the national inventory of coal & lignite. It may, therefore be made mandatory on the block allocates to provide data/GR on the resources explored by them before approval of Mining Plan. 32.0 It is necessary to formulate in and association Policy with concerned for Ministries, concurrent

Regulatory/legal

framework

guideline

Exploration/development of Coal/lignite blocks through Conventional mining, CBM/CMM Recovery, UCG etc. MINING TECHNOLOGY 33.0 In India around 90% of the coal is produced by opencast method, therefore, bigger size of HEMM is finding greater application for higher production and productivity. 42 cum rope shovel shovels, 240 T rear dumpers and 33 cum Dragline have already been deployed. Future mines need to be planned for a maximum depth of 300 to 500 m with still larger sizes of HEMM, e.g. 56 cum Shovels400/320/260 T dumpers and crushing conveying of coal and OB. Contribution of production through surface miners needs to be expanded from the present level of around 25 % for eliminating the need for drilling, blasting and sizing. 34.0 About 12% of underground production still comes from manual loading operation which needs to be totally phased out through suitable mechanisation during XII Plan period. 35.0 The Powered Support Longwall and Continuous Miner technology is being applied with success in many mines and there is a need to popularise and establish these as predominant underground technology especially for greater depth. The allied areas like tele-communication, transport, ventilation, manriding system should also keep pace with the development.

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PRODUCTIVITY AND BENCH MARKING 36.0 Average manpower productivity in opencast mines is around 10 tonne per manshift. Some coal companies have attained a level of 20 tonne/ manshift. This calls for a proper analytical approach like benchmarking. The lower availability and utilization of machinery in some mines and coal companies need to be addressed by cutting down the idle and breakdown time of machinery, better maintenance and timely procurement of spares, eliminating mismatch between excavating and transportation capacities and better discipline and training of workmen. 37.0 In order to improve the OMS of around 0.7 tonne in the underground OMS, large scale mechanization and automation should be initiated. FORMULATION AND IMPLEMENTATION OF COAL PROJECTS 38.0 During project formulation the specific conditions of geology, geography, resource, quality, production potential need to be carefully assessed and addressed to. The project-specific development of infrastructure, evacuation system has to be suitably planned keeping in mind the future potential and the entire coalfield. 39.0 Software and web based project monitoring system should be used for better evaluation of the implementation. Enhanced empowerment of coal companies to be delegated down the line at various levels and devising suitable contract management practices should be initiated for eliminating delays in project implementation. ENVIRONMENTAL MANAGEMENT, LAND ACQISITION AND R&R 40.0 The process of EC requires Re-engineering with specific provisions for coal mining. Mines should be grouped together on the basis of unique environmental concerns, geographical separations for the purpose of preparing cluster-wise EIA/EMP where mines of same owners are located in close proximity 41.0 Coal companies should take possession of the entire area of land required for the life of the project at one go. Often, land records with State Authorities are inaccurate or incomplete. This leads to delays in processing acquisition of land and disputes over ownership and size of land plots. Updating and computerisation of land records supported through survey of land is essential. Suitable legislation should be made to stop construction on coal bearing land. 42.0 Uniform R&R policy for coal sector irrespective of Public or Private sector needs to be formulated for providing level playing field.

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CLEAN COAL TECHNOLOGIES 43.0 Clean coal technologies should be considered as the thrust area for XII Plan to mitigate adverse impact of coal usage on environment. 44.0 The clean coal technologies related to combustion of coal are mainly being dealt within the power sector. Highlighting the advantage of cost efficiency through reduction of specific coal consumption, these technologies need also to be promoted to other coal consuming sectors. AUTOMATION & APPLICATION OF INFORMATION TECHNOLOGY 45.0 In order to successfully implement automation and information technology in the coal mining sector, top-down approach needs to be adopted for various business functions including IT infrastructure beginning with corporate headquarters and subsequently to be extended to area and unit level to individual. RESEARCH & DEVELOPMENT 46.0 R&D thrust need to be given in some of the emerging new areas , viz. in-situ coal gasification, Liquefaction of coal, Coal Bed Methane(CBM), Shale gas estimation & its recovery, 3D seismic survey, Study of structure of coal seam and roof rocks in hydro-fracturing areas. 47.0 Coal companies should consider investing at least 1% of their PBT in R&D every year. Private sector participation in R&D work should also be encouraged. Participation from academic institutes, research scholars and reputed overseas institutions should be promoted. SAFETY & WELFARE 48.0 Measures such as Simulator to impart training for all HEMM operators and virtual reality training facilities at Central Training Institute need to be established in all coal companies to reduce the incidence of accidents in opencast mines. 49.0 Suitable and binding safety clauses for contractual / outsourced operation as per recommendation incorporated. 50.0 In each OC Area, a special cell needs to be created for formation of Slope / Dump stability. Use of Slope stability radar for monitoring dump stability should be made mandatory in OCM. 51.0 Definite project-wise safety management plan may be formulated on the basis of risk assessment stated in 10th national safety conference needs to be

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52.0 Specialized training should be imparted on fire Prevention / fire fighting techniques for key and positional persons and also for other employees working in Fire Accident Prone Production Areas 53.0 It should be made mandatory to incorporate a Long Term Safety Plan for the life of the Project for all new projects. Similarly, safety of coal mining operations by operators working new coal blocks should be monitored by government. 54.0 Each mine should have Computerized Mine Safety Information System. 55.0 All Coal Companies should establish virtual reality training facilities in next two years. 56.0 A safety portal needs to be developed at the level of DGMS for sharing of mine level experience of accidents, safety related information and other updates. 57.0 All rescue stations should be equipped with Hydraulic stone / rock cutter. Airlifting bag Power winch

Mobile winder to be kept at Central Workshop of each subsidiary. Water mist fire extinguisher. Rescue Mannequins

LCD projector for bringing awareness in safety aspects to mine workers

58.0 In order to provide level playing field to all players in the coal sector, a uniform welfare policy framework needs to be formulated. The practice adopted by CIL may be considered as the benchmark for formulation of such policy. Human resource requirement 59.0 Keeping in view the gigantic task ahead for human resources development of the coal sector, a national level high-power committee may be constituted to examine in depth the issues involved to frame an actionable agenda. 60.0 Considering the difficult living conditions in coal mining areas, the benefits and amenities to be extended to highly skilled manpower in the coal industry have to be distinctly different and attractive vis-a- vis other PSUs. 61.0 The training of non-executive manpower in the coal sector deserves a heightened focus of attention and the existing VTCs and training institutes need to be revamped for new quality of training. Audit of the available facilities in VTCs including training modules around the coal industry is urgently required to identify and bridge the gaps in training facilities.

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62.0 Setting up of specialized training centres for supervisors at 4/5 strategic locations in the coal industry is urgently required. CIL subsidiaries may take up at least one polytechnic in their command area and re-equip the same with advanced learning tools and delivery systems for upgrading the skills of new trainees and the existing manpower. 63.0 Indian Institute of Coal Management (IICM) should expand its footprint as a Centre of Learning for the coal industry. The institute has to oversee the training needs of senior and middle management level executives and for this purpose has to emerge with a new mantle of Open University. The institute facilities for beaming training modules for video conferencing have to be significantly enlarged; the institute also needs to spawn training units at each subsidiary level and use the model of Indira Gandhi Open University for offering its programmes including interaction with the coal industry personnel under training. The institute has to expand its reach and establish collaborative link with oversees institutions for training of coal industrys senior executives. The institute will also formulate modular programmes for training of middle and junior level executives, which can be made available through video conferencing. 64.0 The skill deficit at the level of executives, especially at the level of mining engineers, dictate that the coal industry must undertake some hand holding with mining engineering faculties around the country to prepare mining professionals required by the coal industry. The coal sector has to develop closer links with institutions to develop appropriate programmes, which address specific requirements of the industry. The coal industry will also have to support research at the institutions and provide adequate facilities for training undergraduates with scholarships so that the graduates choose Coal India as employer of choice, which could be mutually beneficial. 65.0 Indian coal industry faces a daunting challenge of human resource development at all levels - from front line supervisors to senior level executives - for a new order of performance. For the new paradigm of mechanization, the coal industry has to refocus the initiatives on human resource development if only to attain the production goals it has set for itself. Acquisition of coal assets abroad 66.0 A sovereign fund needs to be created for investment in developing logistic and infrastructure in coal bearing countries, particularly in emerging coalfields where this is an opportune moment to consolidate the position of Indian companies so that substantial quantity of coal supply for long-term period can be secured from these coalfields.

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67.0 Assistance in securing soft loans for Indian coal companies may be considered, so that effective IRR percentage can be attractive enough for investment, particularly for coking and high CV thermal coal assets which are of strategic importance, but which at prevailing rate of market borrowing do not appear to be attractive. 68.0 Acquisition of coal asset needs to be viewed as acquisition of strategic asset and all the guidelines and policies applicable to acquisition of oil and gas asset abroad shall be applicable to coal asset abroad. This change in the policy outlook will greatly encourage the Indian coal companies, particularly, those which are Govt. owned, and enable them to successfully complete M&A deals in coal asset and add valuable resource to the national inventory. 69.0 As a national policy, Indian coal companies and Indian infrastructure companies should be encouraged to work as a consortium wherever investment in coal mining and logistic projects are required to implement in a harmonious manner. This will help Indian Companies to own the entire value chain of coal minerailway-port 70.0 Immediate steps should be taken for creation of new bilateral working groups in coal or activate the existing coal working groups to sensitize the foreign Govts. for allocation of coal assets to consortium of Indian coal companies on nomination basis. The Indian government owned flagship coal company, Coal India Limited, may be the lead company in the consortium and suitable arrangement can be entered into with other government owned or private companies to jointly develop the coal assets abroad. The countries will be identified by the consortium of Indian companies and handed-over to the Government envisaged strategy. 71.0 Government may envisage creation of an Indian Coal Inc., which is a consortium of Indian coal companies both government owned and private, who can hold time to time meetings under the aegis of MOC so that diverse efforts of these companies can be converged in a cohesive manner towards enhancing energy security of the nation. CIL may take leadership role in steering this Indian coal incorporate under the guidelines of MOC. 72.0 Following empowerments/flexibilities may be accorded to the government owned enterprises to enable them to compete in the global coal market for coal M&A deals and emerge successful: To acquire Greenfield/Brownfield coal assets overseas dispensing with the for implementation of the

existing rigid bindings with regard to establishing strategic relationship with listed with definite goal oriented process.

entities only. The current approach must get replaced by a more professional outlook

228

along with the criteria that should be followed for the selection of target coal assets.

Framing guidelines for evaluating coal assets, either Greenfield or Brownfield

India by leveraging its position with the existing coal consumers.

A defined framework to establish itself as a major importer of thermal coal in

track the entire Merger & Acquisition (M&A) transaction. Guidelines in respect of need to be formulated and finalized for all future acquisitions.

Tools/Guidelines related to financial parameters for quick decision making to fast

critical financial parameters like Enterprise valuation, IRR/ DCF or multiple approaches

volatility is observed to be significant due to market fluctuations. This would require Acquisition (M&A) process. Merchant

There are definite risks involved in any M&A transaction, more so when the price

an approved guideline to safeguard the potential risks involved in any Merger &

appointment on nomination basis so that they can develop and bring lucrative opportunities for our consideration. Fees for the MB/IB could be defined in the guidelines as event based on the success of the deal.

Bankers/Investment

Bankers

(MB/IB)

should

be

accepted

for

required in some of the target countries which may have to be financed by Sovereign Fund from the Govt.

Capital requirements for setting up infrastructure/logistic support would be

also be applicable for coal assets.

Govt. Guidelines, if any, for acquiring strategic Oil and Gas assets abroad should

proposed financial powers of the Board related to foreign investment periodically, say, after 3 years or post completion of a successful transaction, whichever is earlier. Policy initiatives on coal sector reform 73.0 Exploration and Project Formulation

It would also be appropriate to include a suitable clause for reviewing the

Coal exploration needs be speeded up manifold to ensure availability of more explored coal blocks for mining by private and public sector. Multiple technical agencies require to undertake coal exploration effort. Apart from CMPDI, MECL and State Directorates, more players should be brought in and current capability of exploration agencies should be enhanced for increasing exploration effort.

A timebound plan to cover the entire country by regional mapping in 10 years should be prepared by GSI. CMPDIs current capacity of drilling 3 lakh meters per annum must be raised to at least 15 lakh meters per annum.

229

CMPDI should be asked to speed up detailed exploration by engaging institutions/companies, selected based on competitive bidding, which could take up exploration of the blocks under the Indicated and Inferred categories. The corresponding cost may be recovered from the prospective allottees for respective block

New exploration technologies such as geo-physical logging, satellite imagery should be extensively used for this purpose A countrywide study needs to be carried out to classify the total coal resource in the country as per JORC / UNFCC Classification. For this purpose a high level task force should be set up to carry out this activity in a time bound manner.

There should be no necessity for FC for exploration, provided the exploration number of boreholes can be taken as per UNFCC guidelines.

agency commits to necessary restrictions as may be imposed by MoEF. The

There is a need to strengthen the institution of RQP through greater scrutiny of their capabilities. Further, either Coal Controllers Organisation or else proposed the approved Mining Plans. Coal Regulator should be given the mandate for monitoring the implementation of

74.0 Clearances and Licenses Environmental and Forest

To expedite clearances a co-ordination committee at the Centre and State level the concerned departments.

should be set up (Single window concept) with representation of senior level from

A Special Task Force, be constituted under Secretary (Coal) to closely monitor the approval process. An Apex Committee of Secretaries headed by the Cabinet Secretary, consisting of the Secretaries from the Ministries of Coal, Power,

Environment and Forest, Finance, Home, Railways, and Planning Commission, clearances, land acquisitions, possessions, law and order, etc.

review the process of important matters related to environment / forest

To ensure a leaner, transparent and efficient approval process, there is a need to number of levels and stages should be reduced.

ensure Forest and environmental clearances in a time-bound manner. Also the 75.0 Specific recommendations in respect of forest clearances include:

FC applications should be cleared within 6 months. DFO work - evaluation of cost consultants

/ benefit and tree enumeration to be outsourced to competent private sector

Levels for granting Stage II FC clearance should be reduced, as it is only compliance to the in principal approval. Diversion of forestland for mining should be considered for a longer period till the exhaustion of the ore body. To avoid delays in FC levels at the state government be reduced to three, i.e. District Forest Officer, Nodal Officer, and Secretary, State Forest Department.

230

Green credits - Coal mining agencies can be encouraged to take up afforestation in advance and given green credits for specific acres of new forest created to be credits should be allowed to be traded openly and anyone should be allowed to undertake afforestation anywhere in the country. used in lieu of compensatory afforestation when new applications are made. Green

Coal companies should hand over forestlands and revenue forestlands to respective State Government Departments. State Governments may be directed to complete the process of determining and conferring the rights of scheduled tribe and other traditional forest dwellers in six months.

Till

independent to the status of forestry clearance. Now for seeking environmental clearance involving forestland, in-principle approval of forestry clearance is a prerequisite. This needs to be done away with. 76.0 Specific recommendations in respect of Environmental Clearance are:

31.03.2011,

applications

for

environmental

clearances

can

be

filed

Projects for benefit of XI & XII Plan should be taken at priority or if necessary, a

Special Task Force with adequate powers may be set up to examine environmental and awarded for production at least 25% more than the initial required mine capacity.

related issues for such project. Further, environmental clearance may be sought

There is wide disparity in environmental performance of coalmines in the country. out the best practices and establish benchmarks for those not doing so well to improve.

A system of third party audit or the adoption of a Green Rating System can bring

EC once given should be valid so long as there is no expansion or major modifications in the mine/washery; it should not be required afresh merely because lease is being renewed.

77.0 Clearances and Licenses Land Acquisition and R&R

speedy land acquisition

Enactment of a central legislation is required to ensure uniform R&R policy and Delineation of coal bearing areas in each state and to put the information on the concerned State Govt website should be carried out in a time bound manner by MoC. The State Government have to obtain clearances from MoC before issuing any license for setting up any industry / infrastructure

Necessary enactment is required to prevent habitation over coal bearing areas

78.0 Specific recommendations in respect of land acquisition process are:

Coal companies should actively restore at least a significant part of post mining land into agricultural land with some effort and investment.

231

Companies should be encouraged to take up land for mining on long term lease to be returned back on completion of mining to the land holders Tripartite Committee of the concerned District Collector/Special Land Acquisition Officer, representative of company official and representative of the landowners land. may be formed to review and resolve problems in acquisition and handing over of

CBA needs to be reviewed and modified to make it more growth oriented

79.0 Captive Coal Mining

In order to create a market mechanism for increasing coal availability from captive coal mining blocks necessary amendment may be brought in the Coal Mines Nationalization Act.

Future blocks should be allocated on the basis of a transparent bidding process, with bidders placed on a similar platform. Multiple suggestions have been made in this respect:

Blocks to be brought for Competitive bidding should be free from factors like presence of wild life sanctuaries etc which will stand in the way of the Clearance. Time allowed for commissioning should be suitably revised taking into account the ground realities in respect of prospecting license, forestry & environment clearances and time taken for land acquisition and execution of lease agreement.

Prospecting license should be issued along with the block allocation letters. Time period of 2 years for completion of exploration should be counted from the date of grant of forestry clearance within a certain time limit. Power Projects having cost of coal, as a Pass through item should not be allowed to participate in the bidding process. A bidders mining experience should be considered during the qualification stage. The mining experience of the mining company will help the consortium in ensuring expeditious development of the Block

A Member of the Consortium should be allowed the advantage of the strength of its promoter/associate company in the Group for meeting the qualification criteria. The bidding document should contain all available information including geological information, data on Rail and Road connectivity; Extent of Forest Cover; of high tension power sub station etc Presence of water bodies like River, Nalah, Lake etc.; Human Habitation; Nearness

80.0 Captive / MDC / Other Government Company block owners

A substantial investment in mining activities would also be made by companies who have been allotted blocks under captive or government dispensation, as production is expected to rise substantially from these blocks in the XII Plan. One of the key challenges being faced by these block owners in development of their blocks is their inability to create / access infrastructure for evacuation of coal to

232

their end use plants. It is therefore, desirable that an agency should be created

Special Area Development Authority in consultation with State Governments so

that Master Plans for these facilities can be prepared coalfield-wise. The committee therefore recommends creation of an institutional mechanism for planning and development of common infrastructural facilities for use by all the block owners:

A Local area Development authority should be created with participation of block

allocates, coal mining companies and respective state governments to develop comprehensive plans for infrastructural facilities and requirements in each identified coalfields areas. The authority shall award the development and basis. operations of the said infrastructure facility on BOO basis to a developer on a PPP

The developer is expected to take defined revenues for each unit of capacity, which will be paid for by the users of the facility. A pre-defined (standardised) User Agreement based on capacity would be executed between the developer and the captive block owners for the same A Regulator may be designated to monitor the performance of the PPP Developer and also adjudicate on any dispute arising between the developer and the users Where CIL is also operating blocks in the same coalfield and has developed infrastructure; wherever surplus capacity is available in the infrastructure developed by CIL, the same should be made available for use by the block allocatees, through the authority against the payment of user charges fixed by the by making marginal investment / modification / addition thereto. The same should be made through the authority on PPP basis and the capacity so created, can be shared by block allocatees. This will avoid creation of parallel networks and may also provide ready access to Right of Way land in many cases.

regulator. In certain situations, the capacity of CIL infrastructure can be increased

81.0 Regulation and Governance in Coal Sector Industry structure

The coal sector regulator should be set up on a priority basis National Coal Council - Advisory Board, which may be called the National Coal Council in which all stakeholders are duly represented to be set up headed by Minister for Coal.

Infrastructure status should be extended to the coal industry. Duties on capital goods imported for coalmines must be lowered to put them at par with duties on imports for other energy sub-sectors.

Amend the provisions of Contract Labour (Regulation & Abolition) Act, 1970 to facilitate offloading of restricted activities in coal mining for improved economics of operations.

Coal mining should be opened to private players without the restriction of captive use. To this end, the Coal Mines (Nationalization) Bill, 2000 should be passed.

233

Conservation of Coal resources - A high level task force should be set up to formulate a set of principles / rules for ensuring conservation of coal resources / maximising the exploitation of resources from opencast and underground means.

Coal and CBM / CMM - Need for treatment of Coal and CBM exploitation in an

integrated manner and not as an independent energy sources as being done currently leading to conflict situations. MoU between Coal and Petroleum Ministry to be reviewed and a comprehensive policy on CBM along with coal mining needs to be evolved

Given the high commercial risks and large capital investment requirement even to assess the viability; UCG should be provided similar fiscal initiatives as available for CBM.

It is recommended that either CMPDI is made an independent organization or an geological information in the country on the lines of CEA or DGH. independent organization be created to develop and maintain the repository of all

For acquisition of coal assets outside the country, Govt. of India should create a sovereign fund out of which loans can be made available to the Indian Companies interested in acquiring overseas Coal Assets.

For Public sector companies an empowered group should be created so that proposals for Asset acquisition abroad can be examined by this Group and decisions taken.

82.0 Development of Underground Mining:

Coal companies should develop a comprehensive plan for improving their performance in underground mines Government should consider options such as cost plus pricing, cross subsidies, to improve the potential returns currently available from underground mining activities

Government Companies should also be encouraged to create JV arrangements for exploitation of high value UG reserves such as Coking coal properties where the JV CIL shares a premium based on a transparent bidding process partner takes responsibility for the development and operations of the mine and

For encouraging UG mining, fiscal incentives like exemption from customs / excise duty for equipment, any applicable cess and exemption from payment of NPV for forest cover should be provided.

Marketing Strategy & grievance redress mechanism 83.0 The scope of need-based product positioning strategy both for coking and nonresource.

coking coal may be evaluated to ensure effective utilization of precious natural

234

84.0 Improving product features and upgrading combustion equipment may be given special emphasis. 85.0 Dual pricing mechanism for consumers in regulated and non-regulated sectors and gradually switching over to market driven pricing mechanism for all consumers in the non-regulated sectors have been recommended.

86.0 To encourage economic and efficient use of coal and facilitate entry of new

entrepreneurs in coal consuming sectors, the existing distribution policy may be

reviewed to bring all coal consumers of non-regulated sectors under the common platform of e-auction, as suggested by Integrated Energy Policy (IEP). This will facilitate providing level playing field to all new coal consuming entrepreneurs. Distribution Policy and IEP continues to be a critical area for

87.0 Tri-partite Fuel Supply & Transport Agreement, as envisaged in New Coal implementation for all rail-borne FSAs. effective

88.0 Rationalization of coal sources for optimization of transport capacity both for indigenous and imported coal deserves topmost priority. railway track, rolling stock, port capacity. 89.0 Coal Companies need to invest in creating logistics infrastructure in the field of 90.0 Developing and augmenting alternate mode of transport like inland waterways, the thrust area for XII Plan.

coastal shipment for easing out burden on railway system have been identified as

91.0 Major stakeholders in upcoming coalfields should consider promoting logistics Indian Railway system. Investment in creating facilities and developing core imported should also be considered as a priority area.

companies through PPP Model for creating track network and transfer points with competence in end to end logistics solution for movement of both indigenous and

92.0 Facilities for computerization and bringing all weighbridges, i.e. the selling points,

within the network for capturing the elementary input by recording the consumer creating an unique commercial transaction need to be developed by the end of XII Plan.

name, invoice particulars to be cleared online by the financial transactions thereby

93.0 Considering that the daily loading end stock position is essential for optimizing the resources to despatch the coal in the minimum possible time frame, the requirement of capturing real time stock position and making the information accessible by all the stakeholders has been felt necessary. decision support system (DSS) applications. Availability of such information would automatically facilitate developing a dispatch solution through 94.0 In order to extend the facility of supply chain management both to the supplier and the consumer with an opportunity to monitor real-time delivery position and wagon integrated with the FOIS of Railways. availability, route congestion etc the entire rail dispatch system needs to be

235

95.0 In order to improve the logistics of road despatch and direct trucks to the least congested stock points, coal companies should introduce GPS enabled Truck Dispatch System.

96.0 Since the supply and consumption of coal continues round the clock, coal companies need to extend 24x7 customer support service. customer rating on the performance of the service centres. 97.0 Suitable portal needs to be created for on line grievance registration, tracking and 98.0 A fixed tenure adjudicating/reviewing Board with adequate decision making power comprising of representatives from coal companies, Ministry of coal, Railways and grievance redress. ministries of important consuming sectors may be constituted for consumers

236

Annexure-A Constitution of Working Group on Coal & Lignite for formulation of the XII five Year Plan vide Office Order No.17014/04/2011-PMS dated 10th May, 2011 Composition: Secretrary (Coal) - Chairman

Shri A.K.Bhalla, Joint Secretary, Ministry of Coal Members: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. B. i). To

- Member Secretary

Additional Secretary, Ministry of Coal

Sr. Adviser (P&E), Planning Commission

SMt. Anjali Anand Srivastava, JS&FA, M/o Coal Shri Kailash Pati, Economic Adviser, M/o Coal Chairman, Coal India Ltd. CMD, Singareni Collieries Co. Ltd. CMD, Neyveli Lignite Corporation Representative of Ministry of Power Representative of Ministry of Steel Representative of Railway Board Representative of Central Electricity Authority (CEA) Representative of Ministry of Finance (Plan Finance) Representative of Planning Commission Representative of Department of Industrial Policy & Promotion Representative of directorate General of Mines Safety Representative of Ministry of Environment & Forests CMRI and CFRI. Representative of Ministry of Information Technology Two representatives of the Department of Science & Technology- one each from Chairman of each Sub-Groups Representative of the (FICCI) Representative of Confederation of Indian Industries (CII). Representative of Cement manufactures Association Shri Chanakya Choudhary, Tata Steel Ltd.

Shri D.N.Abrol, Sr. Vice President, Jindal Power & Steel Ltd. Shri U.Kumar, Adviser (Coal), Essel Mining Industries Ltd. Shri M.K.Sinha, President (Mines), Monnet Ispat & Energy Ltd. Terms of Reference: review the status of reforms carried out in coal sector and make

recommendations for continuation of reforms further.

237

ii)

Plan) and 2017-2022 (13th Plan), based on the requirement of the end users (of both coking and non-coking coal); their pattern of growth; technological improvements of the end users vis-a vis the specific consumption; import requirements of both coking and non-coking coal; possible inter fuel substitutions; etc.

To make a year-wise coal and lignite demand estimate for the period 2012-17 (XII

iii)

complementing the domestic demand from these assets;

Suggest measures to enhance acquisition of assets abroad and extent of

xvi) Review the exploration programme (regional/promotional & detailed exploration) under implementation and suggest measures to enhance the pace of exploration capabilities of the existing exploration agencies to meet this exploration programme augment/supplement these capabilities. and the possibility of private sector participation matching with the current and long term coal and lignite demand; to assess the to

xvii) To assess the potentiality of methane content of each coalfield and suggest measures for successful exploitation of this resource. xviii) To bring out a year wise, coal field wise and company wise coal and lignite production programme with related financial and economic implementations; to

correlate this production programme in the projected demand and to suggest

measures for dealing with the demand-supply mismatch, if any; study and suggest untapped deep seated coal resources and resources in geologically disturbed areas, in particular. competition, xix) To recommend industry structure that would enhance number of players, promote provide consistent and transparent pricing regime and production, distribution, transportation and end use efficiency. xx) To establish benchmarks for different mining operations (opencast as well as realize such levels in India. underground) comparable with international standards and suggest measures to

technological developments for suitable adoption in view of the large resources of

raise

xxi) To suggest measures for improved formulation and implementation of projects. xxii) To suggest measures for improving the availability of proper quality of coking coal from indigenous sources; improving the performance of coking coal washeries; measures to enhance supply of non coking coal of 34% ash for power generation in compliance with the MOEFs directive.

xxiii) To suggest measures for improving the existing infrastructure for coal movement from collieries to consuming centres and also from ports; xxiv) To suggest measure to enhance the use of emerging IT technologies in the exploration, production, distribution and transportation of coal and lignite. xxv) To assess safety and welfare requirements for workers; to assess the current status of research and development activities in the coal and lignite sector and to formulate and recommend schemes and programmes for research and development

238

in specified areas in view of the emerging energy scenario and environmental implications. xxvi) To make assessment of year wise investment including foreign exchange component for achieving the XII Plan objectives and targets, including foreign assistance/loans/bilateral collaboration etc. production in the XII Plan and beyond.

xxvii) To review and assess the environmental management aspects for sustainable coal

2.

3. 4. 5.

reports to the Working Group. deemed necessary. September, 2011.

aspects will be formed by the Working Group. These Sub-Groups will furnish their

In order to assist the Working Group in its task, separate Sub-Groups on specific

The Chairman of the Working Group may co-opt experts as members as and when The Working Group will submit its reports to the Planning Commission latest by 30th

Non-official members of the Working Group shall be entitled to payment of TA/DA respective organizations as per the rules the establishments applicable to them.

by Planning Commission. The TA/DA of Government officials will be borne by their Name(s) of the representative(s) of Organization(s) as mentioned in the composition

6.

of the Working Group may be communicated to the Member-Secretary of the Commission.

Working Group under intimation to Dr. Arbind Prasad, Sr. Adviser (Energy), Planning 7. Shri I.A.Khan, Joint Adviser (Energy), Room No. 501, Yojana Bhawan, (Tel: query/correspondence in this regard may be made with him.

23327446) will be the Nodal Officer for this Working Group and any further

239

CONSTITUTION OF SUB-GROUPS OF WORKING GROUP BY MINISTRY OF COAL Sub-Group-I on reviewing the status of reforms carried out in coal sector and to make recommendations for continuation of reforms further. Composition: Shri A.K.Bhalla, Joint Secretary (Coal), Ministry of Coal - Chairman Shri Gautam Dhar, CGM (CP), Coal India Ltd. Members: 1) 2) 3) 4) 5) 6) 7) 8) 10) 9)

Annexure-B

- Member Secretary

Representative of Ministry of Power

Representative of Central Electricity Authority (CEA) Representative of Department of Science & Technology Representative of Ministry of Commerce Representative of Department of Industrial Policy & Promotion Joint Adviser (Coal),Planning Commission

Representative of Industries & Minerals Division, Planning Commission Representative of Singareni Collieries Co. Ltd. Representative of Federation of Indian Chamber of Commerce and Industry (FICCI)

11) 12) 2. 1.

Representative of Confederation of Indian Industries (CII). New Delhi-110001.

Secretary, Captive Power Producers Association, UCO Building, Parliament Street, Mr. M. Rajgopal, Director & CEO, M/s. Lanco Power Company. Terms of Reference:

to make recommendations for continuation of reforms further. 2.

To review the status of various reforms carried out in coal and lignite sector and

promote competition, provide consistent and transparent pricing regime and raise production, distribution, transportation and end use efficiency. 3. improvements. 4.

To recommend industry structure that would enhance number of players,

To review availability of human resources in the sector and to suggest

component for achieving the XII Plan objectives and targets, including foreign assistance/loans/bilateral collaboration etc.

To make assessment of year-wise investment including foreign exchange

Sub-Group-II on Coal Demand, Supply, movement, quality, import and Infrastructure development.

Shri R.K.Mahajan, Joint Secretary (LA), Ministry of Coal Shri H.K.Vaida, CGM, Coal India Limited

1.

Composition:

- Chairman Member Secretary

240

Member:1. 2. 4.

Director (Tech.) Ministry of Coal

3. 5. 6. 7. 8. 9. 10.

Representative of Ministry of Power Representative of Ministry of Steel

Representative of Central Electricity Authority (CEA) Representative of Ministry of Environment & Forests

Representative of Department of Fertilizers Representative of Railway Board

Representative of D/o Industrial Policy & Promotion

11. 12. 13. 14 15.

Representative of Ministry of Commerce

Representative of Ministry of Surface Transport Joint Adviser (Coal), Planning Commission

Representative of Industries & Minerals Division, Planning Commission Representative of SCCL, Kothagudem Representative of Central Mine Planning & Design Institute Ltd. (CMPDIL). Representative of Neyveli Lignite Corporation (For Lignite) Representative of Confederation of Indian Industries (CII) Terms of Reference: To review the likely achievement during XI Plan in meeting target set for

Representative of Transport Division, Planning Commission

16. 17. 19. 1. i) 18.

Representative of Federation of Indian chamber of Commerce and Industry (FICCI) Representative of Small Scale Industries Association (SSIA)

production, productivity and dispatch and analysis of reasons of shortfall, if any, to be highlighted. ii) 2017 (XII Plan) and 2017-2022 (XIII Plan), based on the requirement of the end users (of To make a year-wise coal and lignite demand estimate for the period 2012 to

the end users vis-a-vis the specific consumption; import requirements of both coking and non-coking coal; possible inter fuel substitutions; etc. iii) iv) v) Face.

both coking and non-coking coal); their pattern of growth, technological improvement of

To suggest/recommend a suitable platform for public grievance/customer inter To deliberate and suggest improvement in marketing strategy. To bring out a year-wise, coal field wise and company-wise coal and lignite

production programme with related financial and economic implications; to correlate this with the demand-supply mismatch, if any. vi)

production programmet in the projected demand and to suggest measures for dealing To suggest measures for improving the existing infrastructure for coal logistics

from collieries to consuming centers and also from ports and also measures for expediting land acquisition. vii) Suggest measures to enhance acquisition of assets abroad and extent of

complementing the domestic demand from these assets.

241

Sub-Group-III Technologies

on

Coal

and

Lignite

Exploration

and

use

of

Clean

coal

Composition: Shri A.K.Singh, CMD, CMPDIL Chairman

Shri A.K.Debnath, Director (Technical), CMPDIL Members: 1. 3. 2. 4. 5. 6. 7. 8. 9.

Member Secretary

Representative of Ministry of Mines

Representative of Geological Survey of India Representative of Ministry of Environment & Forests Joint Adviser (Coal), Planning Commission

Representative of Ministry of Statistics & Programme Implementation Representative of Ministry of Petroleum & Natural Gas / Director General of Hydro Representative of Coal India Limited Carbons (DGHC)

Representative of Singareni Collieries Co. Limited Representative of Neyveli Lignite Corporation

10. 12. 13. 14. 2. i) 11.

Representative of Confederation of Indian Industries (CII) Representative of CMPDIL

Representative of Mineral Exploration Corporation

Representative of Federation of Indian chamber of Commerce and Industry (FICCI)

Representative of Department of Fertilizers Terms of Reference: Review the exploration programme (regional/promotional & detailed exploration)

under implementation and suggest measures to enhance the pace of exploration

matching with the current and long-term coal and lignite demand; to assess the capabilities of the existing exploration agencies to meet this exploration programme and the possibility of private sector participation to augment/supplement these capabilities. ii)

To assess the potentiality of methane content of each coalfields and suggest

measures for successful exploitation of these resources and to assess the potential of shale gas in coal formations. iii) Study and suggest technological developments for suitable adoption in view of the

large resources of untapped deep seated coal resources and resources in geologically disturbed areas, in particular. iv)

exploration, production, distribution and transportation of coal and lignite. Safety, Welfare and Environmental Management

To suggest measures to enhance the use of emerging IT technologies in the

Sub-Group-IV on Productivity, Information Technology, Mining Technology, R&D,

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Composition: Adviser (Projects), Ministry of Coal Secretary Members Chairman

Shri D.N.Prasad, Director (Tech.), Ministry of Coal

Member

1. 3. 4.

2.

Representative of Ministry of Information Technology Representative of Science and Technology or Council of Scientific & Industrial Representative of Central Mining Research Institute (CMRI), Dhanbad. Joint Adviser (S&T), Planning Commission Employment Shri I.A.Khan, Joint Adviser (Coal), Planning Commission Research (CSIR) Representative of Ministry of Environment & Forests

5. 6.

7. 8. 9. 10. 12.

Representative of Director General of Mines Safety (DGMS), Ministry of Labour & Representative of Coal India Limited

Representative of Singareni Collieries Co. Limited Representative of Neyveli Lignite Corporation

11. 13. 14. 15. 16. 17. (FICCI) 2. (i)

Representative of Ministry of Mines

Shri R.K.Chopra, Regional Director, CMPDIL. Representative from the IIT, Kharagpur

Representative of Confederation of India Institute (CII) Representative of Federation of Indian chamber of commerce and Industries Mr. M.K.Thapar, M/s. Adani enterprises Ltd.

Representative of Indian School of Mines, Dhanbad

Terms of Reference: To assess safety and welfare requirements for workers; To assess the current

status of research & development activities in the coal and lignite sector and to view of the emerging energy scenario and environmental implications. (ii) production in the XII Plan and beyond. (iii)

recommend schemes and programmes for research and development in specified areas in To review and assess the environmental management aspects for sustainable coal To suggest measures for improving the availability of proper quality of coking

coal from indigenous sources; improving the performance of coking coal washeries; measures to enhance supply of non-coking coal of 34% ash for power generation in compliance with the MOEFs directive. for improving the same. (iv)

To assess the existing mining technologies in coal sector and suggest measures

243

(v)

restoration of mines out areas; and for development of environmentally benign mining and transportation. (vi) To establish benchmarks for different mining operations (opencast as well as

To suggest measures for optimal utilization of resources; reclamation &

underground) comparable with international standards and suggest measures to realize such levels in India. (vii) 1. 2. To suggest measures for improved formulation and implementation of projects.

deemed necessary.

The Chairman of the Sub-Group may co-opt experts as Members as and when The Sub-Groups will submit their reports to the Working Group on Coal and

Lignite set up by the Ministry of Coal in pursuance of the Planning Commission Order by 16th August, 2011. 3. Non-official members shall be entitled to TA/DA as permissible to grade-I officers

of Government of India and the expenditure will be borne by Planning Commission. The TA/DA of Government and public sector officials will be borne by their respective organizations. 4. mentioned may kindly be communicated to the Members-Secretary of the Working Group under intimation to Dr. Arbind Prasad, Sr. Adviser (Energy), Planning Commission within one week. It is requested that the name(s) of the representatives of various organizations

244

Annexure No.1.1 Year-wise Coal Demand and Supply : Sector-wise in X Plan Coal Demand vis--vis Demand Materialisation during X Plan Period (2002-2007) (In Million Tonnes) Sl.No. I 1 2 3 II 1 2 3 4 5 6 III Major Consuming Sectors Coking Coal Steel / Coke Oven & Cokeries (Indigenous) Import Total Coking Non-Coking Coal Power Utility Power (Captive) Cement Sponge Iron Others Total Non-Coking Grand Total 249.50 21.15 17.10 4.00 37.15 328.90 363.30 255.47 19.55 16.37 6.17 35.18 332.74 363.35 256.00 22.49 16.50 5.36 44.39 344.74 380.90 268.21 18.19 16.63 7.59 40.62 351.24 380.91 279.52 24.90 19.00 7.50 39.29 370.21 404.19 285.55 27.09 18.33 10.99 32.39 374.35 408.79 303.56 27.35 20.22 10.40 42.07 403.60 445.65 300.29 24.67 18.38 14.70 43.70 401.74 435.25 322.00 31.78 25.40 7.00 44.30 430.48 474.18 307.92 28.13 19.67 17.47 55.51 428.70 463.87 34.40 17.66 12.95 30.61 19.75 16.41 36.16 16.68 12.99 29.67 18.09 15.89 33.98 17.51 16.93 34.44 18.16 23.89 42.05 16.62 16.89 33.51 18.51 25.19 43.70 17.29 17.88 35.17 2002-03 Demand Actual 2003-04 Demand Actual 2004-05 Demand Actual 2005-06 Demand Actual 2006-07 Demand Actual

Source: Coal Controller Organisation, CEA & CMA & Demand as per Annual Plan of MOC

245

Annexure No.1.2 Year-wise & Sector-wise demand and supply in XI Plan (in Million Tonnes) Terminal Year Sl.No. I 1 2 3 II 1 2 3 4 5 6 III Major Consuming Sectors X Plan (200607) Actual Coking Coal Steel / Coke Oven & Cokeries Import Total Coking Non-Coking Coal Power Utility Power (Captive) Cement Sponge Iron Others Total Non-Coking Grand Total 307.92 28.13 19.67 17.47 55.51 428.70 463.87 330.00 33.60 28.80 15.10 49.00 456.50 494.50 332.40 29.31 21.27 20.92 61.37 465.27 504.29 373.00 38.00 25.00 18.00 52.00 506.00 550.00 362.08 32.74 20.09 19.78 76.67 511.36 549.02 401.00 40.00 25.59 28.80 58.07 553.46 597.98 364.60 51.33 21.61 23.10 86.03 546.67 587.81 442.00 44.00 30.00 28.80 61.00 605.80 656.31 383.98 28.99 27.58 18.76 110.98 570.29 616.13 460.00 40.00 28.89 30.47 90.00 649.36 696.03 (Indigenous) 17.29 17.88 35.17 18.00 20.00 38.00 16.99 22.03 39.02 26.20 17.80 44.00 16.58 21.08 37.66 17.26 27.26 44.52 16.45 24.69 41.14 17.92 32.59 50.51 17.83 28.00 45.83 17.23 29.44 46.67 Demand Actual Demand Actual Demand Actual Demand Actual Demand 2007-08 2008-09 2009-10 2010-11* 2011-12

* : As per Provisional Coal Statistics: 2010-11 of CCO; Import as per CEA for Power Utilities and CMA for Cement Source: Coal Controller Organisation, CEA & CMA & Demand as per Annual Plan of MOC

246

Annexure No. 1.3 All India Coal Production Performance in XI Plan Year-wise achievement of all India coal production in the XI Plan Period is furnished in the table below. (Figures in Mt) X Plan 06-07 Actual CIL SCCL Captive Others * All India AG % CAGR % 5.62 360.91 37.71 17.61 14.60 430.83 07-08 Actual 379.46 40.60 21.25 15.77 457.08 6.09 08-09 Actual 403.73 44.55 30.01 14.47 492.76 7.80 09-10 Actual 431.26 50.43 35.46 14.89 532.04 7.97 10-11 Actual 431.32 51.33 34.6 15.83 533.08 0.20 Ant 447.00 51.00 36.15 17.75 551.90 3.53 5.08 2011-12 AP Target 447.00 51.00 38.25 17.75 554.00 4.12 5.16 9.56 7.89 Original 520.50 40.80 104.08 14.62 680.00 MTA 486.50 47.00 80.89 15.52 629.91 TY XI Plan

Source

* JKML, JSMDCL, DVC, IISCO, Tata Steel and Meghalaya

247

Annexure No. 2.1

Perspective Demand Analysis of XII Plan by Expert Committees (Figures in Mt) Terminal Year Source Sector Steel Power(U) XI Plan Working Group (Oct'2006) CPP Cement Sponge Iron Others * Total Steel Mid Term Appraisal of 10) Power(U) CPP Cement Sponge Iron Others ** Total Steel Coal Vision 2025 @ 9% GDP (Extrapolated on the basis of the demand projected on 8% GDP Growth taking 0.7 as energy elasticity (2005) Power(U) CPP Cement Sponge Iron Others $ Total Steel Vision 2020 CIL Corporate Plan at 9% GDP Growth prepared by KPMG, by Power(U) CPP Cement## Sponge Iron Others### Total Steel
@

(2011-12) 68.50 483.00 57.06 31.90 28.96 61.68 731.10 68.5 473 33.35 136.09 710.94 58.99 464.54 48.21 42.84 70.15 684.72 47 468 27 30 118 (715) 48 690

XI Plan

(2016-17) 105 750 85 50 135 1125

XII Plan

XIII Plan

(2021-22)

Not Furnished

Planning Commission (2009-

Not Furnished

75.55 600.91 68.47 66.4 89.29 900.62 56 675 35 41 133 940 (971) 58

97.35 759.65 97.92 103.12 114.86 1172.9 69 1015 54& 55 204 1397 (1435) 74

balance energy demand model taking Integrated benchmark# (2011-12) Energy Policy forecast as

Vision 2020 CIL Corporate

248

Terminal Year Source Plan at 10% GDP Growth prepared by KPMG, by balance energy demand Sector Power(U)_ CPP Cement Sponge Iron Others Total 27 31 120 (727) 702 36 42 137 (998) 966 58 59 218 1489 (1530) (2011-12) 476 XI Plan (2016-17) 694 XII Plan XIII Plan (2021-22) 1082

model taking Integrated benchmark# (2011-12)

Energy Policy forecast as

* In Working Group estimates Others include Sponge Iron for 2016-17. ** In MTA Others include CPP, Sponge Iron for 2011-12. $ In Coal Vision 2025 document Others include Sponge Iron The following are pertaining to Vision 2020 CIL Corporate Plan document of KPMG : coking coal demand @ average GCV of 6500 kcal/kg. ## Demand for cement sector is after accounting for energy demand to be met by pet coke. ### Others include CPP demand @ Numbers in bracket indicate coal demand @ average GCV of 4200 kcal/kg & Demand from Cement sector in FY2022 is extrapolated based on growth in coal demand as per the Coal Vision 2025 @9% GDP growth. # The coal demand is based on average GCV 4200 kcal/kg except for Steel, in which case it is

249

Annexure No. 2.2 List of coal based power plants to yield benefit in XII Plan (A) Central Sector

A(i) Central Sector : Projects under Implementation As per CEA Estimate No. Sl. Name of TPP Capacity (MW) 660 660 250 500 500 500 500 500 500 195 195 660 660 660 660 500 250 250 250 250 500 500 500 10600 Generation in 2016-17 (MU) 4625 4625 1750 3500 3500 3500 3500 3500 3500 1014 1014 4625 4625 1388 4625 3500 1750 1750 1750 1750 3500 3500 3500 70291 Energy Requirement in 2016-17 (Mt) 3.10 3.10 1.23 2.45 2.45 2.45 2.45 2.45 2.45 0.96 0.96 3.10 3.10 0.93 3.10 2.45 1.23 1.23 1.23 1.23 2.45 2.45 2.45 49.00 Coal Year of

Commissioning 2013-14 2014-15 2014-15 2012-13 2013-14 2012-13 2012-13 2012-13 2012-13 2013-14 2014-15 2014-15 2015-16 2016-17 2012-13 2012-13 2012-13 2013-14 2014-15 2014-15 2013-14 2014-15 2014-15 XII Plan

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Barh STPP-II, Bihar Unit-1 Barh STPP-II, Bihar Unit-2 BONGAIGAON TPP Unit-3 MAUDA TPP Unit-1 MAUDA TPP Unit-2 VINDHYACHAL ST-IV Unit-11 VINDHYACHAL ST-IV Unit-12 RIHAND-III Unit-5 RIHAND-III Unit-6 Muzaffarpur Ext. Bihar (Kanti TPP) Unit-1 TPP) Unit-2 Muzaffarpur Ext. Bihar (Kanti Barh STPP-I Unit-1 Barh STPP-I Unit-2 Barh STPP-I Unit-3 Sipat-I Unit-3 Vallur unit 3, T.N. Unit-3 Nabinagar TPP Unit-1 Nabinagar TPP Unit-2 Nabinagar TPP Unit-3 Nabinagar TPP Unit-4 Tuticorin JV Unit-1 Tuticorin JV Unit-2 Bokaro TPP A Expn.Unit-1 Total

250

A(ii) Central Sector : Source-Tied Up Projects (bulk-tendering route) As per CEA Estimate No. Sl. Name of TPP Capacity (MW) Generation in 2776 1388 1388 1388 1388 8328 Energy Requirement in 2016-17 (Mt) 4.03 0.93 0.93 0.93 0.93 7.75 Coal Year of

2016-17 (MU)

Commissioning XII Plan XII Plan XII Plan XII Plan XII Plan XII Plan

1 2 3 4 5

MEJA JV Unit-1&2 NEW NABINAGAR Unit-1 SOLAPUR Unit-1 MAUDA-II Unit-1 RAGHUNATHPUR Unit-1 Total

1320 660 660 660 660 3960

(B)

State Sector

B(i) State Sector : Projects under Implementation As per CEA Estimate No. Sl. Name of TPP Capacity (MW) 600 500 500 660 660 660 500 500 600 250 250 500 250 250 600 600 500 Generation in 4200 3500 3500 4625 4625 4625 3500 3500 4200 1750 1750 3500 1750 1750 4200 4200 3500 Energy Requirement in 2016-17 (Mt) 2.94 2.45 2.45 3.10 3.10 3.10 2.45 2.45 2.94 0.82 0.82 2.45 1.23 1.23 2.94 2.94 2.45 Coal Year of

2016-17 (MU)

Commissioning 2014-15 2013-14 2014-15 2013-14 2014-15 2015-16 2012-13 2013-14 2013-14 2013-14 2013-14 2012-13 2012-13 2012-13 2012-13 2013-14 2012-13

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Kakatiya TPP ST -II, A.P. Unit-1 Chandrapura Extn. Mah. Unit-8 Chandrapura Extn. Mah.Unit-9 Koradi, Mah. Unit-8 Koradi, Mah. Unit-9 Koradi, Mah. Unit-10 Marwah TPP, Chatt. Unit-1 Marwah TPP, Chatt. Unit-2 Kalisindh TPS, Raj Unit-2 Sikka TPP Extn. Guj. Unit-3 Sikka TPP Extn., Guj. Unit-4 Korba West St.III Unit-5 SATPURA EXT Unit-1 SATPURA EXT Unit-2 1 2 Shree Singaji TPP-I (Malwa) UnitShree Singaji TPP-I (Malwa) Unit-

ANPARA-D Unit-1

251

B(i) State Sector : Projects under Implementation As per CEA Estimate No. Sl. Name of TPP Capacity (MW) 250 600 250 250 800 800 11330 Generation in 1750 4200 1750 1750 5600 5600 79325 Energy Requirement in 2016-17 (Mt) 2.30 2.94 1.23 1.23 3.34 3.34 54.24 Coal Year of

2016-17 (MU)

Commissioning 2012-13 2012-13 2013-14 2014-15 2014-15 2015-16 XII Plan

18 19 20 21 22 23

Parli TPS, Mah.Unit-8 Kalisindh TPS. Raj. Unit-1 Chhabra TPS Extn, Raj. Unit-3 Chhabra TPS Extn. Raj. Unit-4 Sri Damodaram Sanjeevaiah TPP Sri Damodaram Sanjeevaiah TPP Total (Krishnapattam TPP), A.P. Unit-1 (Krishnapattam TPP), A.P. Unit-2

B(ii) State Sector : New Projects As per CEA Estimate No. Sl. Name of TPP Capacity (MW) 500 250 750 Generation in 2016-17 (MU) 3500 1750 5250 Energy Requirement in 2016-17 (Mt) 2.45 1.23 3.68 Coal Year of

Commissioning 2014-15 2014-15 XII Plan

1 2

ANPARA-D Unit-2 DPL U-8 Total

Note: All TPPs for which source has not yet been tied- are considered to be New Projects

252

(C)

Private Sector

C(i) Private Sector : Projects under Implementation As per CEA Estimate No. Sl. Name of TPP Capacity (MW) 660 660 660 660 660 660 600 Generation in 4625 4625 4625 4625 4625 4625 4200 Energy Requirement in 2016-17 (Mt) 3.1 3.1 3.1 3.1 3.1 3.1 2.94 Coal Year of

2016-17 (MU)

Commissioning 2013-14 2013-14 2014-15 2014-15 2015-16 2015-16 2013-14

1 2 3 4 5 6 7

Sasan UMPP,Unit- 1, M.P. Sasan UMPP,Unit- 2, M.P. Sasan UMPP,Unit-3,M.P. Sasan UMPP, Unit-4, M.P. Sasan UMPP,Unit-5, M.P. Sasan UMPP, Unit-6, M.P. DERANG TPP (JINDAL INDIA ORISSA Unit-2 THERMAL POWER LIMITED), KSK Mahanadi Power Company Ltd (Akaltara (Nariyara) TPP) Unit-4

8 9 10 11

600 270 270 600

4200 1890 1890 4200

2.94 1.32 1.32 2.94

2014-15 2012-13 2013-14 2013-14

Goindwal Sahib, PUNJAB Unit-1 Goindwal Sahib, PUNJAB Unit-2 KSK Mahanadi Power Company Ltd (Akaltara (Nariyara) TPP) Unit-1 KSK Mahanadi Power Company Ltd (Akaltara (Nariyara) TPP) Unit-2

12

600

4200

2.94

2014-15

13 14 15 16 17 18 19 20 21 22 23

KSK Mahanadi Power Company Ltd (Akaltara (Nariyara) TPP) Unit-3 NIGRIE, MP Unit-1 NIGRIE, MP Unit-2 PROJECT, M.P Unit-2 Mahan THERMAL POWER

600 660 660 600 525 150 150 800 800 800 800

4200 4625 4625 4200 3675 1050 1050 5600 5600 5600 5600

2.94 3.1 3.1 2.94 2.57 0.49 0.49 2.48 2.48 2.48 2.48

2014-15 2014-15 2015-16 2013-14 2014-15 2013-14 2013-14 2012-13 2012-13 2013-14 2013-14

Malibrahmani TPP Unit-1 Simhapuri TPP Ph-II, A.P Unit-1 Simhapuri TPP Ph-II, A.P Unit-2 Mundra UMPP, Unit-2 Mundra UMPP, Unit-3 Mundra UMPP, Unit-4 Mundra UMPP,Unit-5

253

C(i) Private Sector : Projects under Implementation As per CEA Estimate No. Sl. Name of TPP Capacity (MW) 660 600 660 270 270 270 270 270 270 270 270 270 270 270 270 300 300 300 300 250 600 350 350 660 Generation in 4625 4200 4625 1890 1890 1890 1890 1890 1890 1890 1890 1890 1890 1890 1890 2100 2100 2100 2100 1750 4200 2450 2450 4625 Energy Requirement in 2016-17 (Mt) 3.1 2.94 3.1 1.32 1.32 1.32 1.32 1.32 1.32 1.32 1.32 1.32 1.32 1.32 1.32 1.47 1.47 1.47 1.47 1.23 2.94 1.72 1.72 3.1 Coal Year of

2016-17 (MU)

Commissioning 2014-15 2013-14 2012-13 2012-13 2013-14 2012-13 2012-13 2013-14 2013-14 2013-14 2012-13 2012-13 2013-14 2013-14 2013-14 2013-14 2014-15 2012-13 2013-14 2012-13 2013-14 2012-13 2013-14 2013-14

24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47

D B STPS Unit-2 Avantha Bhandar TPPUnit-1 JHAJJAR THERMAL POWER PROJECT Unit-2 CORPORATE POWER LTD, PH-I (MAITRISHI USHA TPP) Unit-1 (MAITRISHI USHA TPP) Unit-2 India Bulls- Amravati Unit-1 India Bulls- Amravati Unit-2 India Bulls- Amravati Unit-3 India Bulls- Amravati Unit-4 India Bulls- Amravati Unit-5 India Bulls - Nasik Unit-1 India Bulls - Nasik Unit-2 India Bulls - Nasik Unit-3 India Bulls - Nasik Unit-4 India Bulls - Nasik Unit-5 DHARIWAL INFRASTRUCTURE (P) Ltd Unit-1 Ltd Unit-2 Unit-1 DHARIWAL INFRASTRUCTURE (P) EMCO WARORA-MAHARASHTRA EMCO WARORA- Ph-II CORPORATE POWER LTD, PH-I

MAHARASHTRA Unit-1 Bina Power SUPPLY COMPANY LTD.,Unit-2, M.P DERANG TPP (JINDAL INDIA ORISSA Unit-1 Orissa Unit-1 Orissa Unit-2 1

THERMAL POWER LIMITED), Ind Barath Energy Pvt. Ltd.Ind Barath Energy Pvt. Ltd.TALWANDI SABO, PUNJAB Unit-

254

C(i) Private Sector : Projects under Implementation As per CEA Estimate No. Sl. Name of TPP Capacity (MW) 660 660 660 660 660 300 300 700 700 600 270 270 270 270 270 270 270 270 270 270 520 520 600 600 600 300 350 350 350 660 300 Generation in Energy Requirement in 2016-17 (Mt) 3.1 3.1 3.1 0.93 0.93 1.47 1.47 3.43 3.43 2.94 1.32 1.32 1.32 1.32 1.32 1.32 1.32 1.32 1.32 1.32 2.55 2.55 2.94 2.94 2.94 1.47 1.72 1.72 1.72 3.1 1.47 Coal Year of

2016-17 (MU) 4625 4625 4625 1388 1388 2100 2100 4900 4900 4200 1890 1890 1890 1890 1890 1890 1890 1890 1890 1890 3640 3640 4200 4200 4200 2100 2450 2450 2450 4625 2100

Commissioning 2014-15 2015-16 2015-16 2016-17 2016-17 2012-13 2012-13 2013-14 2014-15 2014-15 2014-15 2014-15 2014-15 2015-16 2015-16 2014-15 2014-15 2014-15 2015-16 2015-16 2014-15 2015-16 2013-14 2014-15 2015-16 2012-13 2012-13 2012-13 2012-13 2014-15 2012-13

48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78

TALWANDI SABO, PUNJAB Unit2 3 TALWANDI SABO, PUNJAB UnitBARA-U P Unit-1 BARA-U P Unit-2 BARA-U P Unit-3 ROSA TPP PH-II Unit-3 ROSA TPP PH-II Unit-4 Nabha ( Rajpura TPP) Unit-1 Nabha ( Rajpura TPP) Unit-2 Seoni TPP (Jhabua) Unit-1 India Bulls II Nasik India Bulls II Nasik India Bulls II Nasik India Bulls II Nasik India Bulls II Nasik India Bulls II Amravati India Bulls II Amravati India Bulls II Amravati India Bulls II Amravati India Bulls II Amravati Vizag, Hinduja TPP Vizag, Hinduja TPP Vishakhapatnam, A.P Unit-1 Vishakhapatnam, A.P Unit-2 Lanco Babandh- Dhenkanal U1 MB Power (Madhya Pradesh) Ltd Anoppur Ph-I Unit-1 Anoppur Ph-I Unit-2 KVK Nilanchal TPP KVK Nilanchal TPP KVK Nilanchal TPP Athena Chattisgarh TPP Unit-1 SKS Ispat TPP MB Power (Madhya Pradesh) Ltd Butibori TPP Ph-II Unit-1

255

C(i) Private Sector : Projects under Implementation As per CEA Estimate No. Sl. Name of TPP Capacity (MW) 300 300 300 660 300 660 600 360 Generation in 2100 2100 2100 4625 2100 4625 4625 2520 Energy Requirement in 2016-17 (Mt) 1.47 1.47 1.47 3.1 1.47 3.1 3.1 1.76 Coal Year of

2016-17 (MU)

Commissioning 2013-14 2013-14 2013-14 2013-14 2014-15 2014-15 2014-15 2013-14

79 80 81 82 83 84 85 86

SKS Ispat TPP SKS Ispat TPP SKS Ispat TPP Lanco Mahanadi TPP U-1 Maruti Clean Coal & Power, Chattisgarh Unit-1 Lanco Amarkantak U 4 Lanco Amarkantak U 3 R.K.M. POWERGEN PVT LTDUnit-1 CHHATTISGARH (Uchpanda TPP) R.K.M. POWERGEN PVT LTDUnit-2

87

CHHATTISGARH (Uchpanda TPP) R.K.M. POWERGEN PVT LTDUnit-3

360

2520

1.76

2013-14

88

CHHATTISGARH (Uchpanda TPP) R.K.M. POWERGEN PVT LTDUnit-4

360

2520

1.76

2014-15

89 90 91 92 93 94 95 96 97 98 99 100 101

CHHATTISGARH (Uchpanda TPP) Kamalanga TPP Unit-1 Kamalanga TPP Unit-2 Kamalanga TPP Unit-3 TIRODA TPP PH-I U2 Adhunik Power, Jharkhand Unit1 Vandana Vidyut Unit-2 Tiroda II Unit-1 D B STPS-CHHATTISGARH Adhunik Thermal Energy Ltd.(changed to Adhunik Power & Natural Resources Ltd) Unit 2-1x270 MW Mutiara TPP, Tuticorin Unit-1 Mutiara TPP, Tuticorin Unit-2 Meenakshi Energy Private Limited, A.P Unit-3

360 350 350 350 660 270 135 660 600 270 600 600 300

2520 2450 2450 2450 4625 1890 945 4625 4200 1890 4200 4200 2100

1.76 1.72 1.72 1.72 3.1 1.32 0.66 3.1 2.94 1.32 2.38 2.38 1.19

2014-15 2012-13 2012-13 2013-14 2012-13 2012-13 2012-13 2012-13 2013-14 2012-13 2012-13 2013-14 2012-13

256

C(i) Private Sector : Projects under Implementation As per CEA Estimate No. Sl. Name of TPP Capacity (MW) 300 660 660 660 660 660 1320 50390 Generation in Energy Requirement in 2016-17 (Mt) 1.19 2.79 2.79 2.79 2.79 2.79 5.58 228.83 Coal Year of

2016-17 (MU) 2100 4625 4625 4625 4625 4625 9250 346821

Commissioning 2013-14 2014-15 2014-15 2013-14 2014-15 2014-15 2012-13 XII Plan

102 103 104 105 106 107 108

Meenakshi Energy Private Limited, A.P Unit-4 AP Unit-1 AP Unit-2 Bhavanpadu TPP EAST COASTBhavanpadu TPP EAST COASTThermal Powertech Corporation Ltd. Unit-1 Ltd. Unit-2 Thermal Powertech Corporation Ind Barath TPP MUNDRA TPP PH-III U-2,3 Total

257

C(ii) Private Sector : New Projects As per CEA Estimate No. Sl. Name of TPP Capacity (MW) 660 660 660 1980 Generation in 4625 4625 4625 13875 Energy Requirement in 2016-17 (Mt) 3.10 3.10 3.10 9.30 Coal Year of

2016-17 (MU)

Commissioning 2014-15 2014-15 2015-16 XII Plan

1 2 3

Lanco Mahanadi TPP U-2 D B Power TPP Unit-1 Athena Chattisgarh TPP Unit-2 Total

Note: All TPPs for which source has not yet been tied- are considered to be New Projects

Additional list of coal based thermal power plants S.No. I 1 Name State Sector Capacity (MW) Remarks

Projects where order for main plant placed but certain clearances awaited Raigarh TPP, Chhattisgarh Chhattisgarh P 2400 Coal Linkage Available for 1200 MW, Consent to establish awaited U.P. Chhattisgarh P P 1980 600

2 3

Karchana TPP, U.P TRN Energy Private Limited 2x300, Chhattisgarh

site being shifted, Linkage available, Case -II Linkage Available, Consent to establish awaited

4 5

Malibramani TPP U-2 Navabharat Power Pvt. Ltd. 3x350 MW

Orissa Orissa

P P

525 1050

Coal linkage not available Coal Block/tapering linkage available. Land yet to be acquired.

Nagarjuna

Construction

A.P.

1320

Linkage available (domestic : imported -70:30) Notice to proceed (NTP) yet to be given.

Company Ltd. 7

Phase-I (2x660) Krishnapatnam 6x660 MW UMPP Unit-1-6 A.P. P 3960

Imported coal, Developer stopped work . He has for increase in cost of imported coal. requested for additional tariff

258

Additional list of coal based thermal power plants S.No. 8 9 10 11 12 13 14 15 16 17 18 Name Yermarus TPP Edlapur TPP Bellary Unit-3 Sagardighi Barauni TPP Raigarh TPP (600 MW+660 MW) Lalitpur Avantha Bhandar Unit-2 Corporate Power Phase-II MW) Raikheda (2x685 Pipavav TPP Gujarat State Karnataka Karnataka Karnataka W.B. Bihar Chhattisgarh U.P. Chhattisgarh Jharkhand Sector S S S S S P P P P P P Capacity (MW) 1600 800 700 1000 500 1260 1980 600 540 1370 600 Remarks No coal linkage but No coal linkage but recommended by MoP No coal linkage but recommended by MoP recommended by MoP No coal linkage but No coal linkage No coal linkage, EC received on imported coal No coal linkage No coal linkage No coal linkage, EC received on imported coal Imported coal ,. Domestic recommended by MoP

recommended by MoP

No coal linkage but

coal required to supplement the fuel supply Coal block allocated , but

19

Lanco Babandh U2 Dhenkanal

Orissa

660

there is delay in development of coal block Captive coal blocks in No Go area No Coal Linkage

20 21

Tori TPP , 2x600 KSK Mahanadi

Jharkhand Chhattisgarh

P P

1200 1200

Power Company Ltd. ( Akaltara) ( Nariyara) TPP) MW

Unit 5&6- 2x600 22 DB Power Sidhi U-2 Sub Total M.P. P 660 26505 No Coal Linkage, CWC Clearance awaited

259

II Sl.No 1 2

Projects having coal tied up but order for Main Plant not placed Name Aparna Infraenergy Jinbhuvish Power Ltd.-2x250 State Maharashtra Maharashtra Sector P P Capacity (MW) 250 500 Remarks

Generation Power

3 4 5

Central India Power Co. Ltd. NSL Power Pvt. Ltd. BPL Power Limited Projects(AP)

Maharashtra Tamil Nadu Pradesh Andhra

P P P

660 1320 600

6 7 8 9

PEL Power Ltd. Tirumalai TPP Tirumalai TPP PEL Power Ltd. Gupta Energy Ltd. TPP of M/s Videocon Industries Ltd.

Tamil Nadu Gujarat Maharashtra Chhattisgarh

P P P P

500 500 540 660

10 11 12 13 14

Dheeru Power Gen Pvt. Ltd. Haldia TPP Rayalseema U-6 , APGENCO UPRVUNL Obra Extn U-1, Tilaiya UMPP 6x660 Total

Chhattisgarh West Bengal A.P UP Jharkhand

P P S S P

1050 600 600 660 3960 Order for main plant placed on 14th September, 2011

Reliance Power Ltd.

Sub Total

12400 38905

260

Annexure No.3.1 Coal Production Programme Field-wise Sub. ECL Ranigunj Rajmahal / Deogarh / Mugma- Salanpur SUB - TOTAL BCCL Raniganj Jharia SUB - TOTAL CCL Giridih West Bokaro East Bokaro Ramgarh South Karanpura North Karanpura SUB - TOTAL NCL WCL Singrauli SUB - TOTAL Wardha - Valley Kamptee Umrer - Bander Pench - Kanhan Pathakhera SUB - TOTAL SECL CIC* KORBA MAND RAIGARH SUB - TOTAL MCL IB VALLEY TALCHER SUB - TOTAL NEC CIL SCCL Assam / Makum SUB - TOTAL TOTAL Godavari Valley Coalfields 2011 - 12 16.27 16.73 33.00 1.68 28.32 30.00 0.65 6.46 13.66 1.25 4.41 24.58 51.00 68.50 68.50 30.65 4.86 2.90 4.11 2.98 45.50 24.04 82.39 5.57 112.00 38.71 67.29 106.00 1.00 1.00 447.00 51.00

(Figs in Mt) 2016 - 17 17.42 23.58 41.00 1.50 34.50 36.00 0.65 12.25 16.99 3.20 7.24 42.68 83.00 80.00 80.00 25.72 6.41 5.25 5.13 2.50 45.00 32.41 86.74 10.85 130.00 51.21 88.79 140.00 1.00 1.40 556.40 57.00

261

Movement matrix of indigenous coal for XII Plan (2016-17)

Raw Coal Offtake other than Rail Road (including Internal feed to Washeries) (4) Coastal Shipping (Rail-Sea) (6)

Annexure 5.1
Available for Despatch by Rail Coal Product s (10) Wagon Loading (Rakes/ Day) (12) Grand Colliery Total Raw

Compan y (1)

Field

Raw Coal Production (3)

MGR

Others

Total

Raw Coal (9)

Total

Total

Consump tion (14)

Coal Offtake

(2)

(5)

(7)

(8) (4+5+7)

(11) (6+9+1 0) 12.872 7.758

(13) (8+11)

(15) (6+8+9+14)

ECL

Raniganj Rajmahal/ Deogarh/ Mugma/ Salanpur Total Total South Karanpura North Karanpura East Bokaro West Bokaro Giridih Ramgarh Total

17.420 23.580 41.000 36.000 7.240 42.670 16.990 12.250 0.650 3.200 83.000 80.000 25.720 5.250

5.360 7.750 13.110 13.460 3.992 23.546 9.368 6.760 0.359 1.766 45.790 11.440 10.667 2.179 0.000 45.020 1.100 14.000 14.000 0.000

1.800

5.360 21.750

3.932 7.758 11.690 22.380 3.245 19.124 7.615 5.490 0.291 1.434 37.200 23.390 12.243 2.499

7.140

9.3 5.6 14.9 21.6 2.8 28.9 7.3 4.9 0.2 1.9 46.0 19.3 8.8 3.0

18.232 29.508 47.740 43.400 7.879 63.564 19.511 13.495 0.650 4.432 109.530 83.400 26.209 6.278

0.380 0.020 0.400 0.160 0.003 0.000 0.007 0.000 0.000 0.000 0.010 0.000 0.010 0.000

11.472 29.528 41.000 36.000 7.240 42.670 16.990 12.250 0.650 3.200 83.000 80.000 26.219 4.678

1.800 0.000

0.000 0.000

27.110 13.460 3.992 23.546 9.368 6.760 0.359 1.766

7.140 7.560 0.642 20.894 2.528 1.245 0.000 1.232 26.540 3.400

20.630 29.940 3.886 40.019 10.142 6.735 0.291 2.666 63.740 26.790 12.243

BCCL CCL

0.000

0.000 0.150 2.200 0.000

45.790 56.610 13.967 2.179

NCL WCL

Total Wardha Valley UmrerBander

1.600

4.099

262

Raw Coal Offtake other than Rail Road (including Internal feed to Washeries) (4) Coastal Shipping (Rail-Sea) (6)

Available for Despatch by Rail Coal Product s (10)

Wagon Loading (Rakes/ Day) (12)

Grand

Colliery

Total Raw

Compan y (1)

Field

Raw Coal Production (3)

MGR

Others

Total

Raw Coal (9)

Total

Total

Consump tion (14)

Coal Offtake

(2)

(5)

(7)

(8) (4+5+7)

Pathakhera PenchKanhan Kamptee Total SECL Korea-Rewa Korba MandRaigarh Total MCL Ib Valley Talcher Total NEC CIL SCCL Captive Blocks Grand Total Total Total

2.500 5.130 6.400 45.000 32.410 86.740 10.850 130.000 51.210 88.790 140.000 1.000 556.000 57.000 102.000 715.000

1.038 2.120 2.657 18.660 12.540 33.615 4.205 50.360 22.554 39.106 61.660 0.290 214.770 10.510 42.000 267.280 104.450 10.050 0.000 114.500 19.950 0.000 0.000 19.950 1.100 1.080 25.250 0.000 26.330 2.700 15.300 18.000 0.000 0.000 18.150 18.150 0.000

1.100 0.000 0.500 3.800

2.138 2.120 3.157 23.560 13.620

1.190 2.442 3.046 21.420 12.114 32.421 4.055 48.590 21.450 19.040 40.490 1.110 206.270 35.880 41.600 283.750 1.260 0.900 3.760 2.543 6.806 0.851 10.200 9.949 17.251 27.200 0.000 85.800 0.000 0.000 85.800

(11) (6+9+1 0) 1.190 3.702 3.946 25.180 14.657 39.226 4.907 58.790 31.399 54.441 85.840 1.110 312.020 35.880 41.600 389.500

(13) (8+11)

(15) (6+8+9+14)

0.9 2.7 2.8 18.2 10.6 28.3 3.5 42.4 22.6 39.3 61.9 0.8 225.0 25.9 30.0 280.8

3.328 5.821 7.103 48.740 28.277 102.792 9.111 140.180 56.653 110.547 167.200 1.400 641.590 56.940 101.600 800.130

0.000 0.010 0.000 0.020 0.020 0.000 0.000 0.020 0.000 0.000 0.000 0.000 0.610 0.060 0.000 0.670

3.328 4.571 6.203 45.000 25.754 95.986 8.260 130.000 46.704 93.296 140.000 1.400 556.400 57.000 101.600 715.000

4.700

63.565 4.205

4.700 0.000 1.700 1.700

81.390 25.254 56.106 81.360 0.290

10.350 0.500 18.000 28.850

329.570 21.060 60.000 410.630

Quantity for 1 Rake has been considered as 3800 Tonnes in line with prevalent Carrying Capacity rules of Railways

263

Annexure No. 5.2 Movement matrix for imported coal in 2016-17 (In Mt)

Demand-Indigenous Supply Gap for 2016-17 to be met through Imports

Port/Mode

Coking Coal

Non-Coking Coal

Total

East Coast Ports By non-Rail By Rail

35.50 5.50 30.00

138.00 6.50 131.50

173.50 12.00 161.50

Requirement in Rakes/Day)
West Coast Ports By non-Rail By Rail

21.6
0.00 0.00 0.00

94.8
92.00 23.82 68.18

116.4
92.00 23.82 68.18

Requirement in Rakes/Day)
Total By non-Rail By Rail

0.0
35.50 5.50 30.00

49.2
230.00 30.32 199.68

49.2
265.50 35.82 229.68

Requirement in Rakes/Day)

21.6

144.0

165.6

Notes : Coking Coal Import indicated by RINL has been considered to be through NonRail mode as it is located near port; Similarly, requirement of all existing & proposed import-based TPPs are considered to be through Non-rail mode

264

Annexure No. 5.3 List of on-going Railway projects for augmenting coal routes Throw forward 1st April 2011 20.64 41.00 87.27 as on Expected forward as April 2011 0.64 7.50 77.27 Strengthening of route for movement of coal from Talcher area to Western India on 1st Throw Remarks

(Rs.Cr.)

S. No. 1 2 3

Rly.

Year of sanction 200203 06 10 20052009-

Plan Head DL DL DL Name of the project Sambalpur-Rengali Jharsuguda-Rengali Brundamal-Jharsuguda flyover connection to join DN Line

Length (in Km) 22.7 25.6

Cost 201112

Exp. Mar' 11 92.91 109 0.75 upto

Outlay 201112

ECOR ECOR ECOR

113.55 150 88.02

20 33.5 10

4 5

ECOR ECOR

200607 08 2007-

DL DL

Sambalpur-Titlagarh* Raipur-Titlagarh* incl. NL between Mandi Hasaud-Naya Raipur(20 KM) and new MM for conversion of Raipur(Kendri)-

182 270.2

95.84 691.67

39.74 67.05

60 2.51

56.10 624.62

-3.90 622.11

DhaMtari& Abhnapurkm) GC 6 ECOR 201011 DL

Rajim branch line(67.20 Sambalpur-Talcher 174.11 679.27 2 66 677.27 611.27 Augmenting

capacity for Coal

265

No.

S.

Rly.

sanction

Year of

Head

Plan

Name of the project

(in Km)

Length

201112

Cost

Mar' 11

upto

Exp.

Outlay 201112

forward 1st April 2011 as on

Throw

Expected forward as April 2011 movement from Talcher on 1st Throw Remarks

ECR

200809

DL

Chandrapura-RajaberaChandrapuraBhandaridah

10.6

34.87

20.12

10

14.75

4.75

Augmenting movement

capacity for Coal

8 9

ER ER

200304 10 2009-

DL DL

Barharwa-Tinpahar Tinpahar-Sahibganj as PH-I of doubling of Tinpahar-Bhagalpur

16.49 37.81

74.61 167.84

41.23 25.93

20 25

33.38 141.91

13.38 116.91 capacity for Coal movement from Pakur area Augmenting

10 11 12 13 14 15

ER ER ER ER SCR SECR

201011 06 03 12 12 05 20052002201120112004-

DL DL DL NL NL DL

Sahibganj-Pirapainti Chinpai-Sainthia**, Prantik-Siuri Kajra-Kiul Hansdiha -Godda Bhadrachalam Rd Sattupalli Bilaspur-Salka Road

10.45 31.61 15.85 30 56.25 39.4

129.45 595.91 47.55 267 337.5 144.19

0.01 149.41 30.46 0 10 126.86

30 40 15 1 0.01 10

129.44 446.5 17.09 267 327.5 17.33

99.44 406.50 2.09 266.00 327.49 7.33

Augmenting

capacity for Coal movement from IB/Korba

266

No. 16 17 18 19 20 21

S.

Rly.

sanction 200506 07 08 08 200620072007201112 09 2008-

Year of

Head DL DL DL DL DL DL

Plan

Name of the project Salka Road-Khongsara Patch Doubling* Khodri-Anuppur with flyover at Bilaspur* (work completed) Byepass at Annupur Byepass at Champa Bhojudih-Mohuda Guna-Ruthiyai

(in Km) 26 61.6

Length

201112

Cost

Mar' 11 83.87 196.5

upto

Exp.

Outlay 201112

forward 1st April 2011 60 189.04 as on

Throw

Expected forward as April 2011 0.00 129.04 Augmenting on 1st Throw Remarks

SECR SECR SECR SECR SER WCR

143.87 385.54

60 60

capacity for Coal movement from IB/Korba 14 23 20.5 37.64 134.19 66.5 10.84 0 5.22 17 5 5 26.8 134.19 61.28 9.80 129.19 56.28 Augmenting capacity for movement of Coal to Rajasthan

22

WR

200809

DL

Udhna-Jalgaon with electrification

306.93

714.6

62.55

200

652.05

452.05

Capacity

enhancement work for movement of coal to Western India

23 24

ECR ECR

199899 02 2001-

NL NL

Koderma Ranchi (deposit work) Koderma-Tilaya (Deposit work)

189 68

1157.82 418.17

749.66 73.31

70 75

408.16 344.86

338.16 269.86

Augmentation of capacity for coal thermal power movement to new

267

No. 25 26 27 28 29 30 31

S.

Rly.

sanction 200102

Year of

Head NL NL

Plan

Name of the project Rajgir-Hisua-Tilaiya & Islampur- Natesar work) Tori- Shivpur (Deposit Kukrana Panipat Alwar- Harsauli Harsauli Rewari Champa Jharsuguda Durg Rajnandgaon Line 3rd

(in Km) 67

Length

201112

Cost

Mar' 11 283.6

upto

Exp.

Outlay 201112 3

forward 1st April 2011 20 as on

Throw

Expected forward as April 2011 17 plants in Bihar on 1st Throw Remarks

ECR ECR NR NWR NWR SECR SECR

303.6

200708 200708 200708 11 12 20102011-

DL DL DL DL DL

6.5 34.86 39.35 165

36.08 91.59 113.74 872.12 157.85

35.58 89.59 109.74 33.33 11.00

0.17 2 4 50 20

0.5 2 4 838.79 146.85

0.33 0.00 0.00 788.79 126.85

Augmentation of capacity for coal thermal power and Rajasthan Capacity movement to new plants in Haryana

augmentation work for movement of coal for the houses in Gujarat Thermal Power Maharashtra and

268

Railway projects for port connectivity (i) No . Sl. ONGOING PROJECTS of Port conne cted to be Name Scope of work (in Kms) Length (Rs. in crore) Project cost commencem ent Year of Completion Date Expected

Annexure No. 5.4

Present Status

Project being executed by RVNL. FLS completed. SHA signed on 11.10.2006 and SPV incorporated. Paradi p HaridaspurPrivate land of

472.34 ha in 74 villages has been taken 1 Paradip new line. 82 791.18 1996-97 May 2010 possession out of total requirement of Work in progress on Luna Bridge and

558.46 ha involved in 86 villages. Mahanadi Bridge. Work delayed due to

law & order issues on account of higher whose land has been acquired. 104 5.66 (incl 55 cr. for removal) hutment Dec 2012 and MbPT on 20th Jan,2009 for

compensation being sought by people MOU has been signed between Railways Mumb ai Dedicated freight line between Wadala and Kurla undertaking work as deposit work of of the project is within one and half affected persons.

MbPT. The targeted time for completion year after completion of R&R of project

269

(i) No . Sl.

ONGOING PROJECTS of Port conne cted to be Name Scope of work (in Kms) Length (Rs. in crore) Project cost commencem ent Year of Completion Date Expected Present Status

Project is sanctioned in Budget 20083 Ennore The new Chord line. (Puttur Attipattu) 144 435 Port and Min of Railways. FLS by Ennore port. Limited.

09 on 50% cost sharing between Ennore completed. Cost sharing is not finalized

Doubling of 1)

Panskura-Haldia Rajgoda to

section (Phase-II) Tamluk (13.5 km) has been 4 Haldia sanctioned as and from 2) 37.9 1) Rs 86.91 cr 2) Rs 171.02 cr 1) 2009-10

2) March 2013

1)March 2012

1) FLS work of Rajgoda-Tamluk (Jn is under approval of SER HQ.

cabin) has been completed.Yard plans 2) Detaiiled Estimate has been Basulya Sutahata.

sanctioned of Tamluk (Jn cabin)

Railway project. Tamluk to Basulya Sutahata (24.4 km) has been mode.

2) 2010-11

planned on PPP 5 Krishn Obulavarpalle113.12 732.81 2006-07 Phase-I, Venkatachalam-

270

(i) No . Sl.

ONGOING PROJECTS of Port conne cted to be Name Scope of work (in Kms) Length (Rs. in crore) Project cost commencem ent Year of Completion Date Expected Present Status

apatta nam.

Krishnapattanam new line

Krishnapattanam section completed.

Land acquisition is in progress in Ph-II (Obulavaripalle-Venkatachalamc - 93 km)

271

PROJECTS COMPLETED AND COMMISSIONED Sl. Name of Port connected Haldia New Doubling of Panskura-Haldia to be Scope of work Length Kms) 14 (in Project Year of Scheduled Date Present Status

No.

cost (Rs. in crore) 26

commencement

Completion

section (Phase-I) Aresikere-HassanMangalore rail link GandhidhamConversion Palanpur Gauge Doubling of section

2000-01

March 2006 December 2005

Completed and commissioned.

Mangalore Kandla

236

357

1994-95

Complete section has been

commissioned for goods traffic.

313

550

1998-99

March 2007

Completed and commissioned. Project completed and commissioned on 25.8.2006.

JN Port

Panvel-Jasai Second bridge over Mahanadi

28.5

69

2000-01

March 2006

Paradip

140

1996-97

June 2008

The bridge has been opened for traffic on 18.7.2008. Kodaikanal inspection. The construction work of doubling of

Tuticorin

Doubling of section

Madurai-Dindigul

62.06

126

2003-04

March 2009

completed and is now awaiting CRS commissioned in July 2009. The project has

Road-

Madurai

has

been

been

Kandla Port

Bhildi-Samdhari

Section has been opened for Goods 223 490 1990-91 Dec. 2009 traffic on 28.12.09. and opened for passenger traffic from 28.07.10.

Gauge Conversion

272

PROJECTS COMPLETED AND COMMISSIONED Sl. Name of Port connected Cochin VallarpadmIdapally-New Line Gauge conversion to be Scope of work Length Kms) 8.86 (in Project Year of Scheduled Date Present Status

No.

cost (Rs. in crore) 246.50

commencement 2006

Completion Nov 2009

Project being executed by RVNL. Trial run conducted on March 2010.

Dahej

of BharauchSamni-Dahej

62.33

200.8

2005-06

2010-11

Work completed. Engine rolled on 31.03.11

273

Annexure No. 6.1 State wise projected lignite based power generation capacity XII plan and XIII Plan (TY). (Figs in MW) XII PLAN Projects Tamilnadu NLC Private (STCMS) Total 2990 250 3240 2990 250 3240 2990 250 3240 3540 250 3790 3390 250 3640 5990 250 6240 2012-13 201314 2014-15 2015-16 2016-17 XIII PLAN 2021-22

Tamilnadu Gujarat GEB GMDC GIPCL GPCL GHCL NLC-GOG Total Gujarat Rajasthan RVUNL NLC Total Rajasthan Total India

290 500 500 0 26 0 1066

290 500 500 0 26 0 1066

290 500 500 250 26 0 1316

290 500 500 500 26 0 1566

290 500 500 500 26 0 1566

290 500 500 500 26 1000 2566

850 250 1100 5406

850 250 1100 5406

1515 250 1765 6321

1785 250 2035 7391

1785 500 2285 7491

1785 500 2285 11091

274

Annexure No. 6.2 Sector wise State-wise Projected Lignite Demand (Fig. in Mt) XII PLAN Sector Power Others Total 2012-13 38.98 10.54 49.52 2013-14 40.18 12.08 52.26 2014-15 46.21 13.83 60.04 2015-16 50.22 16.30 66.52 201617 53.86 18.10 71.96 Total XII Plan 229.45 70.85 300.30 XIII PLAN 2021-22 81.19 29.30 108.62

The State wise Lignite Demand

(Figs. In Mt)

XII PLAN

XIII PLAN

Total for State 2012-13 2013-14 2014-15 2015-16 2016-17 XII Plan 2021-22

Tamilnadu

24.43

24.93

24.66

25.25

27.34

126.61

45.48

Gujarat

16.24

17.48

20.33

23.60

25.20

102.85

43.60

Rajasthan

8.85

9.85

15.05

17.67

19.42

70.84

19.54

Total

49.52

52.26

60.04

66.52

71.96

300.30

108.62

275

Annexure No. 6.3 State-wise projected lignite production during XII Plan and at terminal year of XIII Plan

(Figs. in Mt) State Tamil Nadu Gujarat Rajasthan Total 12-13 24.23 16.24 8.89 49.36 13-14 24.23 17.48 9.89 51.60 14-15 24.23 18.53 15.09 57.85

XII PLAN 15-16 25.08 20.00 17.67 62.75 16-17 27.20 21.60 19.80 68.60 Total XII Plan 124.97 93.85 71.34 290.16

XIII PLAN 2021-22 45.75 39.00 19.80 104.55

276

Projected lignite Production for Tamilnadu (Mine-wise) (For XII Plan and at the terminal year of XIII Plan)

(Fig. in Mt) Sl.No. 1 2 3 4 5 6 5 Mine Mine I Mine IA Mine II Devangudi Jayamkondam Mine III Total Capacity MTPA 10.50 3.00 15.00 2.00 13.50 8.00 2012-13 8.93 2.55 12.75 0.00 0.00 0.00 24.23 2013-14 8.93 2.55 12.75 0.00 0.00 0.00 24.23 2014-15 8.93 2.55 12.75 0.00 0.00 0.00 24.23 2015-16 8.93 2.55 12.75 0.85 0.00 0.00 25.08 2016-17 8.50 4.25 12.75 1.70 0.00 0.00 27.20 XIII Plan 6.80 5.95 13.02 1.70 11.48 6.80 45.75

277

(For XII Plan and at the terminal year of XIII Plan)

Projected lignite Production for Gujarat (Mine- wise)

Fig in Mt Sl.No Mine Capacity MTPA 201213 201314 201415 201516 201617 Plan XIII

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Panandhro Akrimota Umarsar Surka-North Amod-Rajpardi Tadkeshwar Lakhpat Matona Madh Damlai Padal Vatsan Mangrol-Valia Alapar (Khadsalia) Panandhro North Ghala Hamla Ratadia Jhulrai Saran Padvania Dungra Valia Total

3.00 3.00 1.00 5.00 1.00 2.50 1.50 4.80 2.50 1.00 2.60 0.30 2.00 2.50 0.50 1.00 1.00 1.40 7.20 43.80

3.00 0.00 1.00 2.00 1.00 2.50 0.00 2.84 0.00 1.00 2.60 0.30 0.00 0.00 0.00 0.00 0.00 0.00 0.00 16.24

3.00 0.00 1.00 3.50 1.00 2.50 0.00 2.58 0.00 1.00 2.60 0.30 0.00 0.00 0.00 0.00 0.00 0.00 0.00 17.48

3.00 0.00 1.00 4.00 1.00 2.50 0.50 2.63 0.00 1.00 2.60 0.30 0.00 0.00 0.00 0.00 0.00 0.00 0.00 18.53

2.00 1.00 1.00 4.50 1.00 2.50 1.00 3.10 0.00 1.00 2.60 0.30 0.00 0.00 0.00 0.00 0.00 0.00 0.00 20.00

1.00 2.00 1.00 4.50 1.00 2.50 1.50 3.20 1.00 1.00 2.60 0.30 0.00 0.00 0.00 0.00 0.00 0.00 0.00 21.60

0.00 3.00 1.00 4.50 1.00 2.50 1.50 3.50 2.50 1.00 2.60 0.30 2.00 2.50 0.50 1.00 1.00 1.40 7.20 39.00

278

(For XII Plan and at the terminal year of XIII Plan)

Projected lignite Production for Rajasthan (Mine- wise)

(Fig in Mt) Capacity MTPA 201213 201314 201415 201516 201617 XIII

Sl.No.

Mine

Plan

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Giral Matasukh Kasnau Sonari Gurah East Gurah West Mokhla Shivkar Kaphurdi Jalipa Sacha-Sauda Barsingsar Hadla Palana Total

1.00 0.50 1.00 1.00 1.00 1.00 1.00 3.00 6.00 0.30 2.10 1.90 0.60 22.65

1.00 0.30 1.00 1.00 0.50 0.00 0.00 3.00 0.00 0.30 1.79 0.00 0.00 8.89

1.00 0.30 1.00 1.00 1.00 0.50 0.00 3.00 0.00 0.30 1.79 0.00 0.00 9.89

1.00 0.50 1.00 1.00 1.00 1.00 0.50 3.00 4.00 0.30 1.79 0.00 0.00 15.09

1.00 0.50 1.00 1.00 1.00 1.00 1.00 3.00 6.00 0.30 1.87 0.00 0.00 17.67

1.00 0.50 1.00 1.00 1.00 1.00 1.00 3.00 6.00 0.30 1.87 1.62 0.51 19.80

1.00 0.50 1.00 1.00 1.00 1.00 1.00 3.00 6.00 0.30 1.87 1.62 0.51 19.80

279

Annexure No. 6.4 State-wise, sector-wise & agency-wise investment proposal Investment Proposed during XII Plan (Rs. Crores) Power Sector Mine Lignite Sector Based On-going Projects New Projects Total NLC Others Total NLC Others Total Coal Based NonTotal renewable Power 0.00 4036.83 4224.34 1047.44 12914.48 15521.98 1047.44 16951.31 19746.32 0.00 4.75 5.25 0.00 4135.00 5536.24 0.00 4139.75 5541.49 0.00 1718.44 2198.94 0.00 9205.00 9912.64 0.00 10923.44 12111.58 0.00 9000.00 0.00

Total

State

Tamil Nadu

Gujarat

Rajasthan Orissa, MP & UP -NLC Completed Projects, Geo. Investigation, Science & Technology, etc. NLC Grand Total

187.51 450.83 3586.00 2607.50 5127.04 6740.00 2795.01 5577.87 10326.00 0.50 4.75 0.00 1401.24 4135.00 0.00 1401.74 4139.75 0.00 480.50 1718.44 0.00 707.64 9205.00 0.00 1188.14 10923.44 0.00 115.00 0.00 9000.00

90.00 36.00 0.00 5589.89 20677.06 19326.00

0.00 36.00 126.00 1047.44 41050.50 46640.39

.
S E C TO R

Ag e nc y w is e R e q ui r e m en t for X II P la n NLC 3481.01 7337.06 1 9 3 2 6 .0 0 1047.44 2 7 7 1 0 .5 0 3 1 1 9 1 .5 1 GU JA R A T 1 4 0 1 .2 4 4 1 3 5 .0 0 0 .0 0 0 .0 0 4 1 3 5 .0 0 5 5 3 6 .2 4

(R s i n C ro r e s ) RA JAST HA N 7 07 . 6 4 9 2 0 5 .0 0 0. 0 0 0. 0 0 9 2 0 5 .0 0 9 9 1 2 .6 4 TO T AL 5 5 8 9 .8 9 20 6 7 7 . 06 19 3 2 6 . 00 1 0 4 7 .4 4 41 0 5 0 . 50 46 6 4 0 . 39

M IN E S E C T O R L ig n ite -b a s e d PO W ER EC T O R C o al-b a s e d N o n -r e ne w a b le To ta l G r a nd to ta l

280

Annexure 7.1
Performance of coking coal washeries in operation in the XI plan period Sl. No. Company / washery Capacity (Mty) 2007-08 0.330 0.480 0.100 0.210 0.440 0.110 0.469 0.287 0.616 0.468 0.331 3.841 0.514 0.514 Washed coking coal production (Mt.) 2008-09 0.347 0.485 0.089 0.185 0.330 0.070 0.098 0.321 0.257 0.610 0.513 0.366 3.671 0.577 0.577 2009-10 0.199 0.312 0.069 0.202 0.286 0.130 0.127 0.139 0.236 0.559 0.458 0.246 2.960 0.526 0.526 2010-11 0.178 0.333 0.116 0.228 0.388 0.133 0.174 0.143 0.208 0.571 0.531 0.191 3.194 0.537 0.537 2011-12 (Target) 0.26 0.41 0.10 0.30 0.40 0.17 0.21 0.25 0.30 0.68 0.57 0.27 3.89 0.54 0.54

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

CIL:Dugda-II Bhojudih Patherdih Sudamdih Moonidih Madhuban Mahuda Kathara Swang Rajrappa Kedla Nandan Sub Total SAIL :Chasnala Sub Total TISCO:Jamadoba West Bokaro-II West Bokaro-III Bhelatand Sub Total TOTAL

2.00 1.70 1.60 1.60 1.60 2.50 0.63 3.00 0.75 3.00 2.60 1.20 22.18 2.04 2.04 0.90 1.80 2.10 0.86 5.66 29.88

2.82

2.925

3.048

2.642

2.6

7.175

7.173

6.534

6.373

7.03

281

Annexure 7.2 Performance of non-coking coal washeries in operation in the XI plan period
Capacity (Mty)

Sl.No Washery / Company 1 2 3 4 5 6 Dugda-I,CIL Madhuban,CIL * Gidi,CIL Piparwar,CIL Kargali,CIL Bina,CIL (A) CIL 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Dipka washery, Aryan coal beneficiation Pvt. Ltd Chakabura Washery, Panderpauny Washery, Binjhari Gevra Ltd. -do-do-do-do-

Washed non-coking coal production (Mt.) 07-08 0.327 0.734 0.394 5.564 0.717 2.581 10.317 08-09 0.261 0.364 5.934 0.540 3.578 10.677 09-10 0.301 0.321 6.388 0.709 3.521 11.24 10-11 0.314 0.352 7.176 0.535 3.339 11.716 (Target) 0.25 0.51 5.95 0.87 3.40 11.30 11-12

1.00 2.50 6.50 2.72 4.50 17.22 12.00 6.00 3.00 0.79 5.00 2.00 0.60 2.50 5.20 2.40 2.40 1.92 2.40 2.40 2.40 2.50 1.00 1.50 2.00 4.00 0.60 2.40 2.40 6.00 0.33

Talcher Washery, Aryan Energy private Indaram Washery, -do-

Wani, Kartikay Coal washeries Pvt. Ltd. Korba, ST-CLI Coal washeries Ltd. Ramagundam, Gupta coalfield & washeries Ltd. Sasti, Wani, Ghugus, Gondegaon Majri, Ramagundam, IB Valley, Ghuggus, Wani, Punvat, Jindal Steel & Power Ltd. BLA Industries Pvt. Ltd. -do-do-do-do-do-do-do-do-do-do-

2.232

30.442

27.71

20.93

25.00

Talcher, Global coal Mining Pvt. Ltd.

Wani, Bhatia International Ltd. Nagpur, Indo Unique Flame Ltd.

282

Sl.No Washery / Company 32 33 Saristatali, CESC KDH, PSEB (B) Others TOTAL (A+B)

Capacity (Mty)

Washed non-coking coal production (Mt.) 07-08 08-09 09-10 10-11 (Target) 11-12

1.5 3.5 78.74 95.96 2.232 12.58 30.442 27.71 20.93 32.64 25.00 36.3 41.119 38.952

* Madhuband washery converted to coking coal washery in 2007- 08, thus total no. is 32.

283

Projected washed coking coal production in XII plan from existing & proposed washeries Existing washeries

Annexure 7.3

Company

Washery & Capacity, Mty CC

2012-13 Midling CC

2013-14 Midling CC

2014-15 Midling CC

2015-16 Midling CC

2016-17 Midling

Coking coal (Existing washery) CCL Kathara, 3.0 Sawang, 0.75 Rajrappa, 3.0 Kedla, 2.6 Total, 9.35 BCCL Dugda-II,2.0 Bhojudih, 1.7 Patherdih, 1.6 Sudamdih,1.6 Moonidih, 1.6 Mohuda, 0.63 Madhuban,2.5 0.3 0.32 0.7 0.68 2.00 0.18 0.425 0.11 0.246 0.436 0.238 0.155 0.33 0.31 0.29 0.49 1.42 0.34 0.42 0.089 0.25 0.213 0.07 0.418 0.3 0.32 0.8 0.78 2.2 0.182 0.418 0.109 0.255 0.455 0.242 0.164 0.33 0.31 0.33 0.56 1.53 0.342 0.45 0.99 0.27 0.22 0.071 0.421 0.35 0.33 0.82 0.8 2.3 0.19 0.421 0.112 0.335 0.461 0.255 0.181 0.38 0.32 0.34 0.57 1.61 0.345 0.46 0.1 0.275 0.22 0.075 0.425 0.37 0.34 0.85 0.84 2.4 0.195 0.429 0.115 0.342 0.465 0.26 0.183 0.4 0.33 0.35 0.6 1.68 0.35 0.465 0.105 0.28 0.225 0.079 0.43 0.4 0.35 0.9 0.85 2.5 0.271 0.433 0.12 0.352 0.475 0.272 0.189 0.44 0.34 0.37 0.6 1.75 0.355 0.47 0.108 0.29 0.23 0.08 0.45

284

Total, 11.63 WCL CIL, 22.18 SAIL & TISCO

Chasnala, Jamadoba, WB-II,WB-III, Bhelatand

1.79 0.187 3.977 3.2 3.2 7.177

1.8 0.137 3.357 3.357

1.825 0.197 4.222 3.4 3.4 7.622

1.873 0.144 3.547 3.547

1.955 0.197 4.452 3.6 3.6 8.052

1.9 0.144 3.654 3.654

1.989 0.221 4.61 3.8 3.8 8.41

1.934 0.162 3.776 3.776

2.112 0.248 4.86 4.0 4.0 8.86

1.983 0.18 3.913 3.913

Nandan, 1.2

SAIL & TISCO, 7.7 Total coking (Existing), 29.88

285

Proposed washeries

Company

Washery & Cap , Mty

2012-13 CC Midling

2013-14 CC Midling

2014-15 CC Midling

2015-16 CC Midling

2016-17 CC Midling

Coking coal (Proposed washery) CCL Dhori, 2.5 Madhuband,5.0 BCCL Patherdih, 5.0 Dugda, 2.5 Dahibari, 1.6 Patherdih, 2.5 CIL, 19.1 Total coking (existing & Proposed), 48.98 7.177 3.357 0.09 1.68 0.75 0.17 0.07 2.76 10.382 0.36 0.8 1.7 0.34 0.1 3.30 6.847 0.375 2.0 1.12 0.5 0.4 0.44 4.835 12.887 1.00 1.0 2.57 1.0 0.6 0.66 6.83 10.484 0.38 2.0 1.12 0.5 0.4 0.66 5.06 13.47 1.00 1.0 2.57 1.0 0.6 1.0 7.17 10.946 0.38 2.0 1.12 0.5 0.4 0.66 5.06 13.92 1.00 1.0 2.57 1.0 0.6 1.0 7.17 11.083

286

Annexure 7.4 Envisaged washed non-coking coal production during XII plan from existing & proposed washeries: Sl. . Washed non-coking coal production (Mt.) 2012- 2013-14 2014-15 2015- 2016-17 13 16

No Washery / Company Non coking coal (Existing washery): 1 Dugda-I, BCCL 2 Gidi, CCL 3 Piparwar,CIL 4 Kargali,CIL 5 Bina,CIL CIL 7 8 9 Dipka washery, Aryan coal beneficiation Pvt. Ltd Chakabura Washery, Panderpauny Washery, -do-do-do-do-

Capacity (Mty)

1.00 2.50 6.50 2.72 4.50 17.22 12.00 6.00 3.00 0.79 5.00 2.00 0.60 2.50 5.20 2.40 2.40 1.92 2.40 2.40 2.40 2.50 1.00 1.50 2.00 4.00 0.60 2.40 2.40 6.00

0.346 0.51 5.95 0.87 3.5

0.371 0.379 0.51 5.95 3.5 0.51 5.95 3.5

0.385 0.51 5.95 3.6

0.4 0.51 5.95 3.6 10.46

11.176 10.331

10.339 10.445

10 Binjhari 11 Gevra 12 Ltd.

Talcher Washery, Aryan Energy private -do-

13 Indaram Washery,

14 Wani, Kartikay Coal washeries Pvt. Ltd. 15 Korba, ST-CLI Coal washeries Ltd. 16 Ramagundam, Gupta coalfield & washeries Ltd. -do-do-do-do-do-do-do-do-do-do-

17 Sasti, 18 Wani, 19 Ghugus, 20 Gondegaon 21 Majri, 23 Ramagundam, 24 IB Valley, 26 Ghuggus, 28 Wani, 29 Punvat, 30 Jindal Steel & Power Ltd.

22 Talcher, Global coal Mining Pvt. Ltd.

25 Wani, Bhatia International Ltd. 27 Nagpur, Indo Unique Flame Ltd.

287

31 BLA Industries Pvt. Ltd. 32 Saristatali, CESC 33 KDH, PSEB Others TOTAL Non coking (Existing) Non coking coal (Proposed washery): 1 Ashoka, CCL 2 Konar, CCL 3 Karo, CCL 4 5 Sonepurbazari, ECL Chitra, ECL

0.33 1.5 3.5 78.74 95.96 10.00 3.50 2.50 8.00 2.50 10.00 5.00 10.00 10.00 10.00 10.00 5.00 79.00 27.00 30.00 33.00 36.00 39.00 49.46 8.00 2.80 2.00 6.00 1.50 8.00 3.70 7.5 7.5 7.5 7.5 3.0 65.00 114.46 38.176 40.331 1.33 1.2 1.2 3.73 44.06 43.339 46.445 8.00 1.6 1.6 3.00 14.20 57.539 8.00 2.00 1.76 2.50 8.00 2.00 4.00 4.00 5.00 5.00 42.26 88.70

6 Kusmunda, SECL 7. Baroud, SECL 8. Basundhara, MCL 9. Jagannath, MCL 10. IB Valley, MCL 11 Hingula, MCL 12 Kolarpimpri, WCL CIL (Non coking) Total

Total Non coking (Existing & proposed) 174.96 38.176

Note: The washed coal production projection from proposed washeries is subject to MoEF clearance for construction of the washeries as per schedule.

288

Annexure -8.1 Programme and Progress of Exploration Work during XI Plan

Agency Exploration Stage Area Coverage (Sq km) Program med Achieved Projected Drilling in 11th Plan (Lakh m) med Program Resources Established in 11th Plan ( Bt) Progra mmed Achieved

Achieved

Regional/ Promotional

Preliminary Regional

GSI GSI GSI DMGR CGMG GSI MEC CMPDI Coal 1717 1717 Lignite Coal Lignite CIL Areas Coal Areas dereserved Non-CIL Identified CMPDI/St Govt. NTPC, State for State Govt. Own areas 1800.3 Own areas Own areas Own areas Own areas 195.00 137.18 465.84 1.71 799.73 404.00 Blocks SCCL 166.30 416.00 409.00 2606 2606 2475.00 Lignite Coal 758.00

No resource established as per nature of work 998 453.58 159.60 296.5 1175.5 114 1586 980.00 4170 5150 2584.00 6148 717.00 83.69 116.00 5.00 11.48 549.00 405.00 73.00 82.00 21.28 13.50 3.67 1.49 2.99 10.75 5.22 4 3.50 3.50 5.94 3.5 5.00 4 1.94 1.14 0.064 0.98 0.68 2.12 0.15 2.95 0.27 2.47 2.74 4.09 3.78 10.04 1.24 1.44 2.34 1.77 13.00 20 4.06 4.06 29.90 4.06 11.78 20 9.90 7.07 0.032 1.816 8.17 10.10 1.78 20.05 0.92 2.28 3.20 27.12 5.04 8.52 0.55 0.50

Promotional

Total Coal GSI MEC Total Lignite

Total

Regional + Promotional CMPDI CMPDI/MEC CMPDI/Pvt State Govts. SCCL Detailed (Coal) Allottees CMPDI CMPDI/MEC CMPDI/Pvt

Govts & Pvt Pty Total Detailed Coal NLC Detailed (Lignite) RSMML GMDC GHCL Total Detailed Lignite Development CIL Areas

1620.69 189.28 137.18 465.84 1.71 794.01

56.26 0.611 0.277 0.475 0.018 1.381 1.22

23.21 0.54 0.28 0.48 0.02 1.31 1.16

37.30

14.79 1.985 0.37 0.099 0.004 2.46

289

Agency Exploration Stage

Area Coverage (Sq km) Program med Achieved

Projected Drilling in 11th Plan (Lakh m) med 1.00 Program

Resources Established in 11th Plan ( Bt) Progra mmed Achieved Promotional Regional/

Achieved

al

SCCL Areas NLC,GMDC,GH CL,RSMML,VS Areas 9.521 9.521

1.24 1.32 30 BHs 20 BHs 31 Lkm 94 Lkm

1.475 30 BHs 20 BHs

CBM Studies Scheme) 2D HRSS Scheme)

(Promotional

CMPDI GSI NGRI Coal Lignite

(Promotional

290

Annexure-8.2 Updated details of Coal Resources as on 1.4.2011 Resource (Million Tonnes) Proved 11638.27 1538.19 13176.46 114.27 0.00 0.00 15077.57 3351.87 3629.03 446.27 9499.42 2748.09 213.88 190.79 83.86 326.24 2655.52 0.00 2655.52 185.08 177.70 1405.24 290.80 0.00 7.83 1725.91 94.30 1820.21 5078.75 866.05 5944.80 199.49 228.20 320.33 849.15 0.00 455.88 Indicated 7750.71 466.56 8217.27 0.00 5380.98 0.00 4352.49 3929.57 1349.04 545.15 5708.86 2048.56 2279.82 26.55 60.10 73.60 11751.26 0.00 11751.26 104.09 3.59 789.61 88.13 47.39 0.00 4926.55 10.08 4936.63 6232.36 195.75 6428.11 2463.86 38.90 10.83 765.55 164.82 3.35 Infered 4443.91 31.55 4475.46 0.00 611.78 15.00 0.00 863.32 34.42 58.05 1864.96 1480.22 503.41 32.48 0.00 0.00 1715.28 160.00 1875.28 32.83 0.00 316.78 68.00 0.00 0.00 190.36 0.00 190.36 1454.73 0.00 1454.73 1.89 0.00 31.00 0.00 0.00 0.00

Sl.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33

Coalfield RANIGANJ (W.Bengal Part) RANIGANJ (Jharkhand Part) Total Raniganj BARJORA BIRBHUM DARJEELING JHARIA EAST BOKARO WEST BOKARO RAMGARH NORTH KARANPURA SOUTH KARANPURA AURANGA HUTAR DALTONGANJ DEOGARH RAJMAHAL (Jharkhand Part) RAJMAHAL (Bihar Part) Total Rajmahal JOHILLA UMARIA PENCH-KANHAN PATHAKHERA GURGUNDA MOHPANI SOHAGPUR (M.P Part) SOHAGPUR (Chattisgarh Part) Total SOHAGPUR SINGRAULI (Part of M.P) SINGRAULI (Part of U.P) Total SINGRAULI SONHAT .JHILIMILI CHIRIMIRI .BISRAMPUR EAST OF BISRAMPUR LAKHANPUR

Total 23832.89 2036.30 25869.19 114.27 5992.76 15.00 19430.06 8144.76 5012.49 1049.47 17073.24 6276.87 2997.11 249.82 143.96 399.84 16122.06 160.00 16282.06 322.00 181.29 2511.63 446.93 47.39 7.83 6842.82 104.38 6947.20 12765.84 1061.80 13827.64 2665.24 267.10 362.16 1614.70 164.82 459.23

291

Resource (Million Tonnes) 34 35 36 37 38 39 40 41 42 43 + 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 PANCHBAHINI HASDO-ARAND SENDURGARH KORBA MAND-RAIGARH TATAPANI-RAMKOLA WARDHA VALLEY KAMPTEE UMRER-MAKARDHOKRA NAND-BANDER BOKHARA IB-RIVER TALCHER GODAVARI VALLEY SINGRIMARI RANGIT VALLEY MAKUM DILLI-JEYPORE MIKIR HILLS NAMCHIK- NAMPHUK MIAO BUM WEST DARANGGIRI EAST DARANGIRI BALPHAKRAM-PENDENGURU SIJU LANGRIN MAWLONG-SHELLA KHASI HILLS (MINOR CF) BAPUNG JAYANTI HILLS (MINOR CF) BORJAN JHANZI-DISAI TUEN SANG TIRU VALLEY DGM NAGALAND REPORT Grand Total 0.00 1369.84 152.89 4980.58 4177.90 50.43 3426.98 1276.14 308.41 468.08 10.00 8057.54 16434.17 9296.85 0.00 0.00 432.09 32.00 0.69 31.23 0.00 65.40 0.00 0.00 0.00 10.46 2.17 0.00 11.01 0.00 5.50 2.00 1.26 0.00 0.00 114001.60 11.00 3425.01 126.32 5936.50 17041.44 2392.72 1405.46 1204.88 0.00 483.95 0.00 8611.31 25375.65 9728.37 2.79 58.25 20.70 22.02 0.00 40.11 0.00 0.00 0.00 0.00 0.00 16.51 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 137471.10 0.00 384.50 0.00 838.58 2552.72 202.19 1424.07 505.44 0.00 0.00 20.00 5847.64 4832.57 3029.36 0.00 42.98 0.00 0.00 3.02 12.89 6.00 59.60 34.19 107.03 125.00 106.19 3.83 10.10 22.65 2.34 4.50 0.08 2.00 6.60 293.47 34389.51 11.00 5179.35 279.21 11755.66 23772.06 2645.34 6256.51 2986.46 308.41 952.03 30.00 22516.49 46642.39 22054.58 2.79 101.23 452.79 54.02 3.71 84.23 6.00 125.00 34.19 107.03 125.00 133.16 6.00 10.10 33.66 2.34 10.00 2.08 3.26 6.60 293.47 285862.21

292

Annexure-8.3 STATE-WISE LIGNITE RESOURCES (AS ON 01.04.2011) (Figs. In Mt) State/Field & District Tamilnadu Nayveli Lignite field Mannargudi Lignite field Ramanathpuram Lignite field Sub Total Pondicherry Neyveli Lignite field Total for Tamilnadu/Pondichery Rajasthan Bikaner Barmer Nagunda (East) Barmer Jaismer Jalura Nagaur & Pali Sub-Total for Rajasthan Gujarat Kachch Bhavnagar Bharuch Surat Sub Total J&K Sub Total Kerala Sub Total West Bengal Sub Total Grand Total for all States 300.61 724.76 218.28 1243.65 6145.84 0.93 0.93 25794.26 118.59 108.71 318.70 20.25 20.25 91.40 33.09 299.17 491.23 336.21 1159.70 7.30 7.30 9.65 9.65 0.86 0.86 8965.76 425.10 299.17 1334.58 663.20 2722.05 27.55 27.55 9.65 9.65 1.79 1.79 40905.86 558.73 495.23 113.00 1166.96 60.57 2148.72 226.59 610.00 21.69 1229.87 295.66 487.55 586.17 13.80 76.08 60.35 1519.61 1080.98 1592.78 21.69 1816.04 13.80 76.08 233.92 4835.29 3735.23 3735.23 3735.23 2833.24 19897.98 168.83 22900.05 405.61 23305.65 1080.85 4304.36 272.43 6257.64 11.00 6268.64 8249.32 24202.34 441.26 32892.92 416.61 33309.53 Proved Indicated Inferred Total

Depth-wise Lignite Resourse on 1.4.2011 (M.Tonnes) Depth Range (m) 0-150 150-300 >300 Grand Total Proved 5258.43 887.41 0.00 0.00 6145.84 Indicated 2062.99 9459.60 14271.67 0.00 25794.26 Inferred 1602.40 2812.37 4550.99 0.00 8965.76 Total 8923.82 13159.38 18822.66 0.00 40905.86

293

Annexure- 12.1 and diversion of surface infrastructure in Jharia and Raniganj coalfields MAJOR COMPONENTS OF MASTER PLAN Sl. No. A 1 2 B 1 2 3 i) ii) iii) iv) Dealing with fire Total no. of existing fires Estimated Cost ( crore) Rehabilitation No. of sites to be Rehabilitated. Area affected in sq km No .of houses to be Vacated/ Rehabilitated superannuation) BCCL (Taking into account 44155/ 25000* 29444 23847 868 33196 180263 896.29 2610.10 line/ Road/OC 7 sites 98314/ 79159 395795 1504.99 4780.60 Planning outlay of and 20 survey with an crore 2 D E Estimated Cost ( crore) Implementing Agency for fire projects & rehabilitation of BCCL/ ECL houses Implementing Agency for rehabilitation of Non-BCCL / ECL houses-Private & Encroachers 11.35 ECL Asansol Jharia 139 8.62 595 25.69 7 40.28 67 (Under 45 fire projects) 2311.50 Components of Master Plan RCF (ECL) (April 08) JCF (BCCL) (March 08) Master Plan for dealing with fire, subsidence, rehabilitation

Private (Authorized) Encroachers (Un-authorized) Others Total No. Population covered

4 5 C 1

Land required for rehabilitation (Ha) Estimated Cost ( crore) Diversion pipeline of Railway

20.00 BCCL

Durgapur Develop (ADDA), of WB Authority

Rehabilitation & Development Govt. of Govt. Authority (JRDA) Jharkhand

of

Implementation Schedule, years

2 (Pre-implementation phase for BCCL only) + 10 ( in two Phases each of 5 years)

Estimated Capital Requirement for fire rail/road/ pipeline etc.

projects, rehabilitation & diversion of

2661.73 crore

7112.11 crore

294

Annexure- 12.2 Year wise phasing of Capital expenditure ( in crore) RCF (ECL) (April08) Phase Year Projects Fire Projects Rehab. -ion of roads PreImpl. I II 1st I 2nd 3rd 4th 5th Phase I 6th II 7th 8th 9th 10th Phase II Total Grand Total 8.056 8.056 8.056 8.056 8.056 40.28 40.28 293.21 267.02 293.74 288.02 282.85 1424.84 232.46 239.26 241.15 239.29 233.10 1185.26 2610.10 2.269 2.269 2.269 2.269 2.269 11.35 11.35 303.54 277.35 304.06 298.35 293.17 1476.47 232.46 239.26 241.15 239.29 233.10 1185.26 2661.73 Rail/ Divers Total Fire JCF (BCCL) (March08) Rehab. sion of roads 10.00 10.00 20.00 94.58 94.14 188.72 640.18 721.26 777.51 731.41 729.09 3599.45 686.39 682.82 674.38 676.14 604.21 3323.94 20.00 7112.11 Rail/ DiverTotal

Projects 2.69 2.24 4.93 191.52 211.51 267.76 216.36 214.04 1101.19 262.68 259.11 250.67 252.43 180.50 1205.39 2311.51

Projects 81.89 81.90 163.79 448.66 509.75 509.75 515.05 515.05 2498.26 423.71 423.71 423.71 423.71 423.71 2118.55 4780.60

9773.84

295

Annexure-12.3

Pre-Implementation Activity Chart for rehabilitation projects of JCF (BCCL) Sl. No.
1

Activities
Socio-Economic survey and valuation of properties for Non BCCL houses Identification of land for phase I Township Acquisition of land for Phase I Township (859.66 Ha) Tendering for surveying of land, Township planning and award of work Surveying of land Township planning for the houses to be resettled in phase -I Tendering and award of work for house construction for Phase - I Total Capital (Rs. in Crores)

Duration (months) I
24

1st Year II III

IV

2nd Year II III IV

For Phase I Houses 3 15 12

For Phase II Houses

2 3 4

5 6 7

6 3 3 163.79 81.89 81.9

296

Annexure-12.4

Phase-wise Rehabilitation Schedule for JCF (BCCL)

Sl. No.
1 2 3 4 5 6

Activities
Construction of houses for Phase I (BCCL- 12462, Non BCCL- 33333) Shifting of houses for Phase- I Demolition of existing houses of Phase-I Identification of land for Phase -II Acquisition of land for Phase- II Tendering for surveying of land, Township planning and award of work for Phase -II houses Surveying of land Township planning for the houses to be resettled in phase II Tendering and award of work for house construction for Phase -II houses Construction of houses for Phase II (BCCL-12538, Non BCCL - 20826) Shifting of houses for Phase- II Demolition of existing houses of Phase-II

Duratio n
48 36 36 12 18 6

Year 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th

7 8 9

6 6 6

10 11 12

48 36 36

297

Annexure-16.1

Statement for overall Welfare Expenditure

For the year 2007-08, 2008-09 and 2009-10 2007-08 2008-09

(Amount in Crore Rs.) (Capital + Revenue) 351.00 369.28 217.10 293.00 495.04 157.00 223.63 30.96 33.18 4169.19 = 4253.17 + 83.98* 2009-10

Name of the Company ECL BCCL CCL WCL SECL MCL NCL NEC CMPDIL TOTAL

(Capital + Revenue) 306.01 294.65 196.93 266.19 449.95 137.00 195.60 24.10 15.82 1886.25

(Capital + Revenue) 335.37 341.29 221.40 279.84 520.21 136.77 231.00 35.77 20.03 2121.68

* Capital N. B. Social Overhead expenditure includes Welfare Salary/Wages,

LTC/LLTC/RRF Electricity, Depreciation on welfare Assets etc.

298

Annexure No. 18.1 Country-wise coal reserve and coal reserve-production ratio The list of countries which could be potential source for import of coal into India along with their reserve to production ratio (wherever applicable) is tabled below:

Sl.No.

Name of the Country

(Billion Tonnes)

Reserve

Production ratio (Yrs.)

Reserve to

1. 2. 3 4 5 7 8

Australia USA Columbia South Africa Russia China Indonesia

76 238 6.8 30 157 114 4.3

190 224 92 121 481 41 19 Not applicable as production has just started

9.

Mozambique

6.7

299

Annexure No. 18.2 Global Trade-flow chart

1 M 18 M
Atlantic Flows

222 MT 16 M 30 M

74 M 9 M7 M

26 M

17 M 42 MT 128

1 MT

40 M 25 9 M 46 MT 15 MT 20

21 MT MT

112 MT 1 MT

2 MT

Pacific Flows

365 MT

300

Annexure No. 18.3 Trend of Import of coal by Asian Countries

350 300 250 M n Tonnes 200 150 100 50 0 2001 2002 Japan 2003 S.Korea 2004 2005 Taiwan 2006 India 2007 China 2008

CAGR 7%
5% 20 24

10 10 19 23

47

39

301

Annexure No. 18.4 Trend of export of coal by major exporting countries

700 600 500 M n Tonnes 400 300 200 100 0 2001 2002 Australia Colombia 2003 S.Africa Venezuela 2004 China Others 2005 2006 2007 Russia 2008

Indonesia

302

ANNEXURE 19.1 Company-wise fund allocation & actual expenditure in X and XI Plans (In Rs. Crores) Company X Plan Approved Outlay CIL SCCL NLC Mines NLC Power NLC Total Dept. Schemes Total MOC 14310.00 2113.00 6125.84 8007.64 14133.48 1034.52 31591.00 Actual Approved Outlay 17390.07 3340.00 2826.00 12218.00 15044.00 1326.00 37100.07 XI Plan Revised in MTA 16090.68 3802.07 2334.39 6140.61 8475.00 4255.80 32623.55 Anticipated 13400.00 5070.00 1510.71 6393.49 7904.20 1500.00 27874.20

Expenditure 7208.22 1450.59 1251.90 1063.32 2315.22 922.95 11896.98

303

ANNEXURE 19.2 Fund allocation & actual expenditure in X and XI Plans with subsidiary-wise break-up for CIL (In Rs. Crores) Company Outlay X Plan Approved ECL BCCL CCL NCL WCL SECL MCL NEC Others* Master Jharia CIL SCCL NLC Mines NLC Power NLC Total Dept. Schemes Total MOC Ranigunj** of CIL / 1460.00 1300.00 1250.00 2750.00 1435.00 3520.00 2500.00 95.00 Expenditure 609.53 677.54 1290.66 1399.53 955.13 1389.29 828.46 58.08 Actual Approved Outlay 1849.68 1250.00 1990.00 4000.78 1374.50 4600.11 2125.00 200.00 XI Plan Revised in MTA 1503.67 1424.98 1832.68 3071.23 1623.97 3316.40 2547.42 770.33 Anticipated 950.00 1320.00 1500.00 2100.00 1225.00 3370.00 2300.00 335.00 300.00

Plans&

14310.00 2113.00 6125.84 8007.64 14133.48 1034.52 31591.00

7208.22 1450.59 1251.90 1063.32 2315.22 922.95 11896.98

17390.07 3340.00 2826.00 12218.00 15044.00 1326.00 37100.07

16090.68 3802.07 2334.39 6140.61 8475.00 4255.80 32623.55

13400.00 5070.00 1510.71 6393.49 7904.20 1500.00 27874.20

*CIL (HQ), DCC, IICM, CMPDIL, Exploration through out-sourcing and R&D

** At the time of formulation of XI Plan & MTA Budget of Master Plan was not considered.

304

ANNEXURE 19.3 Capital Outlay for XII Plan for CIL

(In Rs. Crores)

Company ECL BCCL CCL NCL WCL SECL MCL NEC of CIL/ Others* Master Plan (Jharia/Ranigunj) Overall CIL

Total XII Plan outlay 2050.00 2200.00 2500.00 4500.00 2200.00 4900.00 4700.00 600.00 1750.00 + 35,000 ** 25,400.00

development of coal blocks in Mozambique.

made for acquisition of coal assets abroad and Rs 10,000 Crs for

** Note - Additional ad hoc provision of Rs.25, 000 Cr. has been

*CIL (HQ), DCC, IICM, CMPDIL, Exploration through out-sourcing and R&D

305