CIL Achieves 435.84 MTs Coal Production During 2011-12, Targets 470 MTs for 2012

“Coal India Limited (CIL), the Maharatna coal mining, ended the fiscal 2011-12 with a production of 435.84 Million Tonnes (MTs), more than 4.52 MTs compared to previous fiscal, registering a growth of 1.0%. Now it is fully geared up to put up a spirited performance in attaining the optimistic target for 2012 which has been fixed for 470 Mt”. This has been stated by Ms. Zohra Chatterji, CMD of the coal major while reviewing the performance of the company for 2011-12 here yesterday             She said that the Company has turned around the crippling negative growth of 19 and 16.9% in the months of August, September 2011 due to unprecedented rains and ended with a positive growth of 1% this fiscal. Production picked up in February 2012 recording 17% growth over the previous year as the entire Coal India team geared up to meet the challenge. Maximum production in a day touched a record 2.03 MT, coal offtake reached an all time high of 231 rakes in a day while satisfaction of the power sector was maintained at 94% recording 2% growth over the previous year. Coal production and offtake in March were the highest ever in a single month since inception. Multi-pronged action which was taken to enhance production, productivity and overall performance of CIL on short-term and long-term basis is as under: ·         Intensive Area level monitoring was introduced in the months of Feb & March, 2012 and instructions issued for mine wise monitoring at area level with fixing of accountability for non-achievement of target. ·         In the wake of recent wage hike, an appeal was made to all the employees to shoulder the responsibility of enhancing production to meet the energy requirements of the country. ·         Resources were effectively mobilized and supply of explosives streamlined. The adverse impact, on coal production was negligible during the nation-wide one-day strike on 28.02.2012. ·         Meeting was held with Chairman, Railway Board and intensive monitoring done to ensure availability of at least 10-12 additional rakes per day in the month of February & March 2012. An all time high record of 231 rakes could be achieved on 31st March 2012 and the highest ever average daily loading of 199 rakes was achieved in the month of March. ·         Matter of EC & FC was taken up with Secretary, MoEF for expediting clearances on fast track basis; permission was sought to produce 25% more than the existing EC capacity in 11 projects/Mines reaching capacity limit. EC for 3 projects was obtained in Feb and 7 projects cleared in March, 2012 totaling 19 Mt. ·         Guidelines issued for preparation of detailed Action Plan for 2012-13 by each subsidiary ·         R&R Policy of CIL revised to facilitate faster acquisition of land for expansion of projects/ opening of new projects ·         Amrapali Project, CCL of 12.0 MTPY with an estimated cost of Rs 858.11 Croressanctioned in the 278th Board meeting held on 13.02.2012. The project is likely to contribute 1.5 MT of coal in 2012-13. ·         In order to facilitate faster evacuation of coal, CHP for Jayant project of NCL was sanctioned in 279th Board held on 12th March 2012. ·         The matter for speedy realization of coal sale dues amounting to Rs.3545 crores has also been taken up with the Secretary/Chief Secretary of Energy deptt. of the respective States. Salient features of 2011-12 performance are as under: ·         Production of raw coal during 2011-12 was 435.84 million tonnes as against 431.32 million tonnes produced in 2010-11, which represents a growth of 4.52 milliontones in absolute terms (1.0 %) over the corresponding period last year. In comparison to the AAP target of 447 million tones set in the beginning of the year, the achievement is 96.5%.  The contribution from opencast mines was 91% of total coal production which has improved to 397.45 million tonnes compared to 391.30 million tonnes in 2010-11. ·         A quick look at the month-wise production analysis would reveal the fact that the company had maintained a cumulative positive growth of 1.4% till July’11. However, excessive rainfall in almost all the coalfields in August and September 2011 had an adverse impact on coal production, and resulted a catastrophic negative growth of 19.0% and 16.9% in the month of August and September’11 respectively. Due to this heavy rainfall, coal production, OB removal and offtake suffered heavily almost in all the subsidiaries as it had caused major damages in mine haul road, coal transportation road and overburden dumps. Some of the major coal mines were partially drowned in some of the subsidiaries. The negative growth trend continued in the month of October’11 also (-8.4%). Due to concerted effort and focused strategy if CIL team, the cumulative negative growth till January’12 (1.6%) was arrested and became positive in the month of Feb’12 with significant production growth of 17.0%. The company could thus wipe off the negative growth. The effort was sustained in the month of March’12 which has led to a production of 54.14 million tonnes against 50.71 million tonnes produced in March’11 thereby recording a growth of 6.8%. ·         The contribution from two subsidiaries, namely, SECL and MCL is praiseworthy. SECL and MCL have made an excellent effort in post rainfall recovery and produced an all time high of 113.84 million tonnes and 103.12 million tonnesrespectively this year. SECL and BCCL have achieved respective AAP target for 2011-12. ·         Off-take of raw coal continued to maintain its upward trend and reached an all time high of 432.53 million tonnes during the year 2011-12, surpassing previous highest figure of 424.50 million tonnes achieved last year representing a growth of 1.9 %. As compared to AAP target of 452.0 million tones, the achievement is 95.6 %. BCCL and SECL have the distinction of achieving their AAP targets and have registered an impressive growth of 2.5% and 5.6% respectively over the corresponding period last year. While ECL, CCL, and MCL could achieve positive growth of 3.5%, 2.7% and 0.4% respectively, NCL, WCL and NEC have registered negative growth. ·         Lack of adequate wagon supply till Dec’11 held the Company back on projected growth in off-take and consequent liquidation of coal stock. The issue was taken up with Railway Board. Sustained efforts and regular coordination with railways at different levels saw wagon loading improve by another 345 boxes per day over last year. However in relation to AAP target, materialization was 96.6%.The average loading of rakes touched an all time high of 196.6 rakes/day in Feb’12 and 198.9 rakes/day in Mar’12 as against 168.1 rakes/day and 179.6 rakes/day achieved in the corresponding month last year.The average number of rakes per day was 168.7 in 2011-12 against 161.9 in 2010-11. ·         Major deviation from AAP target has taken place in  CCL, MCL and WCL. The loading potentials of  CCL and MCL/Ib-valley could not be utilized due to inadequate supply of empty wagons.  In some of the coalfields like CCL-Karanpura and MCL-Talcher desired level of rail dispatch was affected due to less transportation of coal to sidings arising out of naxalite bandh and obstruction/agitation by local people on various demands. Dispatch at NCL was affected due to supply of BOBR rakes moving in close circuit within Singrauli region and non-availability of Box ‘N’ rakes. ·         Overburden removed during 2011-12 was 745.55 million cubic meters as against 732.13 million cubic meters in 2010-11 thereby recording a marginal growth of 1.8%. CCL exceeded the AAP target in OBR with a growth of 5.0% and maximum growth in OBR has been witnessed in NCL (15.7%), followed by ECL (7.3%) and WCL (5.8%). Important Highlights of 2011-12 Maharatna Status: Coal India Limited was granted the ‘Maha Ratna’ status on 11 April, 2011 by the Government of India thus becoming only the 5th PSU in the country, of a total of 215 Central Public Sector Enterprises (CPSEs), to have been conferred with this status. Coal India joins SENSEX: Coal India made it to the 30-stock Sensex, on 8 August 2011, globally considered to be the barometer of the Indian economy, in short span of nine months since its listing on 4 November 2010. No other company has made it to the index in such a short time. And then Coal India’s raise to the top came in just seven trading sessions since its entry to SENSEX. This is considered to be a remarkable accomplishment.   Most Valued Company in the country: On 17 August 2011, Coal India emerged as the Most Valued Company in the country in terms of Market Capitalization – the pinnacle of success every business entity dreams of and aspires for. The company’s value stood at a whopping Rs.2,51,296Crores. What made the achievement all the more significant was that a public sector company could attain such lofty heights. Bags ‘Company of the Year Award’ Coal India Limited was conferred the coveted “Company of the Year Award” by Indian Chamber of Commerce and Department of Public Enterprises (DPE) on 19 September 2011 at 2nd Summit on ‘India Public Sector Agenda @2020’ at New Delhi. MoU Excellence Award Coal India Limited received the MoU Excellence Award for Outstanding rating for the year 2009-10 in New Delhi, on 31 January 2012 in a formal awards function ‘MoUExcellence Awards/SCOPE Excellence Awards for outstanding contribution to the Public Sector Management’ organized by Department of Public Enterprises (DPE), Ministry of Heavy Industries & Public Enterprises. Finalizes National Coal Wage Agreement IX in record time: Coal India Limited (CIL) on 31 January 2012, finalized the wage agreement for its 3.63 Lakh strong non-executive work force by giving a 25% increase on gross wages as of 30 June 2011. The wage hike that would be effective retrospectively from 1 July 2011 is for a five-year period.  With the conclusion of the wage negotiation, Coal India for the second time becomes the first Central Public Sector Undertaking in the country to successfully finalize the wage pact. The NCWA IX was concluded in a record time of only 6 months since the formation of JBCCI in August 2011. Never in the history of CIL was a wage agreement concluded so swiftly. ***