Wednesday, December 29, 2010

Greater Transparency Introduced in Allocation of Coal blocks
Coal Stock Position Improved

Year-end Review 2010


The year 2010 was significant in the area of coal production, a number of significant steps taken up in the sector which include competitive bidding of coal blocks, expansion of coal production capacity, offering of 10 per cent share of Coal India Ltd. to the public and highest ever lignite production.

With a view to bringing in greater transparency and demonstrable objectively in the allocation of coal and lignite blocks for captive mining, process of selection through competitive bidding initiated during the year. Accordingly, the Mines and Minerals (Development & Regulation) Act, 1957 was amended and enacted in September 2010. The Amendment provides for grant of reconnaissance permit, prospecting licence or mining lease in respect of an area containing coal and lignite through auction by competitive bidding. The Government is now examining the modalities for preparation of the guidelines/legal framework for conducting the competitive bidding of coal and lignite blocks.
More coal for power generation
During the year more coal linkages granted for increased generation of power. Till October 2010, the Standing Linkage Committee (Long Term) for Power recommended grant of LoA for 104 Thermal Power Plants/IPPs/CPPs for 26824 MWs of power.
Improved coal stock position was recorded during the year and it was 11.854 MT as on 2nd November 2010 at the thermal power stations as against 9.289 MT as on 2nd November 2009.
A scheme of Forward E-auction was to meet long term requirements of actual consumers of coal initiated.
Ministry of Coal streamlined guidelines on 26.2.2010 for issue of LOA/allocation of coal on tapering basis to various consumers of power, cement and sponge iron who have been allocated coal blocks but whose supply does not synchronize with operation of end use plants.

Jharia Rehabilitation Plan

Implementation of the Master Plan dealing with fire, subsidence, rehabilitation and diversion of surface infrastructure in Jharia and Raniganj coalfields within the leasehold areas of Bharat Coking Coal Lomited (BCCL) and Eastern Coalfields Limited (ECL) was approved by the Government at an estimated investment of Rs.9657.61 crore (Rs.7028.40 crore for Jharia Coalfield and Rs.2629.21 crore for Raniganj Coalfield) started.

The implementation of Master Plan will facilitate rehabilitation of 395795 people in BCCL and 180263 people in ECL living in the most endangered areas. Implementation of the Master Plan is being monitored by a High Powered Central Committee (HPCC) under the Chairmanship of Secretary (Coal).

Coal Gasification

Coal Gasification had been notified as one of the end uses under captive mining policy to facilitate the allotment of coal blocks to potential entrepreneurs. 5 lignite blocks and 2 coal blocks have been identified so far for Underground Coal Gasification (UCG) purpose. Guidelines have been issued on for carrying out commercial exploitation of underground Coal Gasification.

Some other significant decisions taken during the year include-

· Guidelines for Mine Closure were issued to take care of all environmental parameters.

· Expansion of coal production capacity of Rajmahal OC Project of ECL from 10.5 Mty to 17.0 Mty with an incremental capital investment of Rs.153.82 crore has been sanctioned.

· RCE of Adriyala Shaft Project of SCCL for a coal production capacity of 2.81 Mty and an overall outlay of Rs.846.06 crore and a net capital investment of Rs.779.26 crore has been approved.

· RCE of NLC’s Barsingsar Mine of 2.10 mtpa capacity of lignite and Barsingsar thermal Power Station of 2 x 125 MW capacity at Barsingsar at a capital cost of Rs.1800.69 crores has been approved.

· 37 Mining Plans of various Coal Blocks (captive as well as non-captive) have been approved.

Initial Public Offering of CIL

To encourage public participation in the Govt. owned companies, the listing of CIL at Bombay Stock Exchange (BSE) managed in November this year by offering 10% of the Government’s share holdings, through a transparent book building process. The Coal India IPO was highly successful and created history in the Indian capital market.

The Government had generated the funds of Rs.15200 crores through the said IPO. The Listing has improved CIL’s standing in the market and also improved valuation of the company tremendously. It is also expected to infuse better corporate management in the company and would spur the company to improve its performance standards and statutory compliances.

More Compensation for Land Acquisition

During the year upto October 2010, an amount of Rs.27.65 crores has been released to coal companies for payment of compensation against land acquision.
Highest ever lignite production achieved

Lignite Corporation Ltd., an undertaking of the Ministry of Coal recorded all round development and growth during the year. Significant achievement of the company include-
Lignite production from all Mines of Lignite Corporation Ltd. during the current financial year put together at 223.38 LT is the highest for any year since inception. (previous highest 215.86 LT during 2007-08)
During the financial year, upto October, total overburden removal from all Mines of Neyveli Lignite put together at 1594.25 LM3 is the highest for any year since inception. (previous highest 1463.44 LM3 during 2008-09).
Similarly during the period overburden removal from Mine-II at 782.63 LM3 is the highest for any year since inception. (previous highest 659.64 LM3 during 2008-09)
Power Generation from all thermal stations put together at 17656.04 MU is the highest for any year since inception. (previous highest 17456.89 MU during 2007-08)
Power Generation from TPS-II at 10559.69 MU is the highest for any year since inception. (previous highest 10517.69 MU during 2007-08)
Export of Power from all thermal stations put together at 14828.22 MU is the highest for any year since inception. (previous highest 14775.84 MU during 2007-08)

The above achievement is without any capacity addition.

Performance during 2010-11:
The net sales for the first half year 2010-11 stands at Rs.2208.63 crores as compared to Rs.1765.85 crores in the previous year 2009-10.
Neyveli Lilgnite Corporation’s profit before tax stands at Rs.859.84 crore for the first half year 2010-11 as compared to Rs.748.82 crores in the same period of previous year.
Mines-II Expansion Project at Neyveli increasing the capacity of Mine-II from 10.5 MTPA to 15.0 MTPA of lignite, attained full Lignite Production capacity on 12.03.2010 and was dedicated to the nation in April 2010.
Barsingsar Mine Project (2.1 MTPA of Lignite) at Rajasthan attained full production capacity on 31.01.2010.
The first unit of 125 MW of Barsingsar Thermal Power Project, was synchronized on 27.10.2009 and was dedicated to the nation by the Hon’ble Minister of State for Coal, Shri Sriprakash Jaiswal on 5.6.2010. The second unit of 125 MW was also synchronized on 5.6.2010.

NLC forges ahead in all fronts and with its expansion activities the company is poised for substantial growth in the years to come.

Achievement of Coal India Limited
Physical and Financial Performance
Performance during June 2009 to October 2010

Sl. No.                               Particulars                                   Actual

                                            Coal Production                         588.32

                                            Offtake (MT)                             584.83

                                             Productivity (T/Manshift)         4.32

                                             Profit (Rs. Cr.)                     19,821.67

CIL have initiated the process of integrated environment management system (ISO:14001) alongwith quality management system (ISO:9001). 53 projects including one coal beneficiation plants have been accredited with ISO:14001 certification.

CIL has proposed to set up 20 non-coking and coking coal (NLW) washeries under Build, Operate & Maintain (BOM) scheme and turnkey scheme. LoI has already been issued to M/s HEC for Madhuban Washery in BCCL and bid evaluation for two washeries are at the final stage. Additionally CIL have pre-qualified 17 parties for the 11 Washeries amongst whom the tenders would be floated shortly.

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