overview of coal industry in india

8/21/2019 overview of coal industry in India

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Arth Prabhand: A Journal of Economics and Management

Vol.2 Issue 8 August 2013, ISSN 2278-0629

PinnacleResearchJournals

62

http://www.prj.co.in

AN OVERVIEW OF COAL INDUSTRY IN INDIA:

ISSUES AND CHALLENGES

MRS. PALLAVI KUMARI*

*Lecturer,Biju Patnaik Institute of Information Technology & Management Studies,

Bhubaneswar, India.

ABSTRACT

Coal is an essential resource for meeting the challenges facing the modern world.

The challenge of sustainable development is complex and multidimensional. Itrequires a positive, multifaceted approach that employs all available means and

explores all promising options. The purpose of this paper is to study the history of

the coal mining, its nationalization, to know the grades of coal, reserves, importanceof coal and barriers in using the coal. The paper also identifies the importance of

understanding the use of clean coal technology. This paper critically elaborates the

present status of Coal India Limited and its subsidiary. The outcomes of the paperindicates that coal has a crucial role in meeting current needs and is a resource

bridge to meet future goals through the enhancement of knowledge and technology.

The challenge is to apply the right technology in the most efficient andenvironmentally friendly way.

KEYWORDS:Coal, sustainable development, nationalization, technology.___________________________________________________________________________

INTRODUCTION

Coal is the most important and abundant fossil fuel in India. It accounts for 55% of the country's

energy need and will continue to be the mainstay of its future energy supply. The country'sindustrial heritage was built upon indigenous coal. India now ranks 3rd amongst the coal

producing countries in the World. It provides most vital input for accelerating the growth of

Indian economy. The development of core infrastructure sectors like power, steel and cement aredependent on coal. The contribution of coal as fuel in power generation is about 65%.

The current per capita commercial primary energy consumption in India is well below that of

developed countries but driven by the rising population, expanding economy and a quest forimproved quality of life, energy usage in India is expected to rise exponentially. Considering the

limited reserve potentiality of petroleum & natural gas, eco-conservation restriction on hydelproject and geo-political perception of nuclear power, coal will continue to occupy centre-stage

of Indias energy scenario. Indian coal offers a unique eco-friendly fuel source to domestic

energy market for the next century and beyond. Hard coal deposit spread over 27 majorcoalfields, are mainly confined to eastern and south central parts of the country.


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RESEARCH OBJECTIVES & METHODOLOGY

The objectives of present study are:

1.

To study the nationalization and history of the coal mining

2. To know the about the grades, reserves, importance and barriers in using the coal

3. To study the use of clean coal technology and advance technologies of coal usage

4. To know about the present status of CIL and its subsidiary

Available secondary data was extensively used for the study. Different news articles were used

which were enumerated and recorded. The required data for the present study have been

collected from the websites of Central Coalfield Limited and Coal India Limited from the annualreports & accounts 2011-2012 of the company.

RATIONALE OF THE STUDY

Given the growing demand for coal arising from the economic and social needs of developingand developed countries alike, a multi stakeholder approach is needed. The challenge of

sustainable development is complex and multidimensional. It requires a positive, multifaceted

approach that employs all available means and explores all promising options. Coal has anessential role now and into the future in meeting this challenge. Energy is a fundamental driver

of economic development and contributor to peoples quality of life. It sustains the living

standards of developed countries to a high level of comfort and convenience and in the

developing world it leads people out of poverty. Access to electricity increases life expectancy,

reduces infant mortality, facilitates education and improves productivity. It provides a window tothe wider world. For India, coal is power, progress and prosperity as it constitutes the primesource of energy for this country. Coal is an essential resource for meeting the challenges facing

the modern world. It plays a major role in delivering electricity across the globe, is fundamental

in the creation of steel, concrete and provides energy for transport.

MEANING OF COAL

Coal is a combustible, sedimentary, organic rock which is composed mainly of carbon, hydrogen

and oxygen. It is formed from vegetation, which has been consolidated between other rock strataand altered by the combined effects of pressure and heat over millions of years to form coal

seams. Coal is a fossil fuel and is far more plentiful than oil or gas, with around 112 years of coal

remaining worldwide. Coal is a fossil fuel and is the altered remains of prehistoric vegetationthat originally accumulated in swamps and peat bogs. The energy we get from coal today comes

from the energy that plants absorbed from the sun millions of years ago. All living plants store

solar energy through a process known as photosynthesis. When plants die, this energy is usuallyreleased as the plants decay. Under conditions favorable to coal formation, the decaying process

is interrupted, preventing the release of the stored solar energy. The energy is locked into the

coal.


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IMPORTANCE OF COAL

The importance of coal as a commercial fuel was first realized in the fourteen century but the

real impetus to the modern development of the coal mining Industry throughout the world came

by the application of coal to the smelting of iron in the eighteenth century and through theinvention of the stem engine. Since then, in modern industry, coal has been regarded untilrecently as the prime source of motive power. However, in the Indian context, it is still the prime

source of energy.Since coal has to continue to play a critical role in supporting Indias energy

plans for considerable time into the future, coal mining and coal usage should become more

environment friendly. India is currently among the top three fastest growing economies of theworld. As natural corollary India's energy needs too are fast expanding with its increased

industrialization and capacity addition in Power generation. This is where 'Coal' steps in. In India

coal is the critical input for major infrastructure industries like Power, Steel and Cement.

NATIONALIZATION OF THE COAL MINING

On account of the growing needs of the steel industry, a thrust had to be given on systematic

exploitation of coking coal reserves in Jharia Coalfield. Adequate capital investment to meet theburgeoning energy needs of the country was not forthcoming from the private coal mine owners.

Unscientific mining practices adopted by some of them and poor working conditions of labour in

some of the private coal mines became matters of concern for the Government. On account ofthese reasons, the Central Government took a decision to nationalize the private coal mines. The

nationalization was done in two phases, the first with the coking coal mines in 1971-72 and then

with the non-coking coal mines in 1973. In October, 1971, the Coking Coal Mines (EmergencyProvisions) Act, 1971 provided for taking over in public interest of the management of coking

coal mines and coke oven plants pending nationalization. This was followed by the Coking Coal

Mines (Nationalization) Act, 1972 under which the coking coal mines and the coke oven plantsother than those with the Tata Iron & Steel Company Limited and Indian Iron & Steel Company

Limited, were nationalized on 1.5.1972 and brought under the Bharat Coking Coal Limited

(BCCL), a new Central Government Undertaking. Another enactment, namely the Coal Mines(Taking Over of Management) Act, 1973, extended the right of the Government of India to take

over the management of the coking and non-coking coal mines in seven States including the

coking coal mines taken over in 1971. This was followed by the nationalization of all thesemines on 1.5.1973 with the enactment of the Coal Mines (Nationalization) Act, 1973 which now

is the piece of Central legislation determining the eligibility of coal mining in India. All non-

coking coal mines were nationalized in 1973 and placed under Coal Mines Authority of India. In1975, Eastern Coalfields Limited, a subsidiary of Coal India Limited, was formed. It took over

all the earlier private collieries in Raniganj Coalfield. Raniganj Coalfield covers an area of

443.50 square kilometers (171.24 sq mi) and has total coal reserves of 8,552.85 million tonnes.Eastern Coalfields puts the reserves at 29.72 billion tonnes. That makes it the second largestcoalfield in the country (in terms of reserves).


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FACTORS WHICH LED UP TO NATIONALIZATION OF COAL INDUSTRY IN

INDIA

Nationalization of coal industry in India in the early seventies were a fall out of two related

events. In the first instance it was the oil price shock, which led the country to take up a closescrutiny of its energy options. A Fuel Policy Committee set up for this purpose identified coal asthe primary source of commercial energy. Secondly, the much needed investment needed for

growth of this sector was not forthcoming with coal mining largely in the hands of private sector.

The objectives of Nationalization as conceived by late Mohan Kumaramangalam were;

Conservation of the scarce coal resource, particularly coking coal, of the country by haltingwasteful, selective and slaughter mining, planned development of available coal resources,

improvement in safety standards, ensuring adequate investment for optimal utilization consistent

with growth needs and improving the quality of life of the work force.

HISTORY OF COAL MINING IN INDIA

The past India has a long history of commercial coal mining covering nearly 220 years starting

from 1774 by John Sumner andSuetonius Grant Heatly East India Company in the RaniganjCoalfield along the Western bank of river Damodar. However, for about a century the growth of

Indian coal mining remained sluggish for want of demand but the introduction of steam

locomotives in 1853 gave a fillip to it. Within a short span, production rose to an annual averageof 1 million tonne (mt) and India could produce 6.12 mts. per year by 1900 and 18 mts per year

by 1920. The production got a sudden boost from the First World War but went through a slump

in the early thirties. The production reached a level of 29 mts. by 1942 and 30 mts. by 1946.After Independence, the Country embarked upon the 5-year development plans. At the beginning

of the 1st Plan, annual production went upto 33 mts. During the 1st Plan period itself, the need

for increasing coal production efficiently by systematic and scientific development of the coalindustry was being felt. Setting up of the National Coal Development Corporation (NCDC), a

Government of India Undertaking in 1956 with the collieries owned by the railways as its

nucleus was the first major step towards planned development of Indian Coal Industry. Alongwith the Singareni Collieries Company Ltd. (SCCL) which was already in operation since 1945

and which became a Government company under the control of Government of Andhra Pradesh

in 1956, India thus had two Government coal companies in the fifties. SCCL is now a jointundertaking of Government of Andhra Pradesh and Government of India sharing its equity in

51:49 ratios.

BARRIERS IN USING COAL

The barriers in using coal are as follows:

Limited supply (non-renewable resource)

Older plants (without emissions filters) generate large amounts of pollution

Generated smoke can cause health conditions such as emphysema
http://en.wikipedia.org/wiki/Suetonius_Grant_Heatlyhttp://en.wikipedia.org/wiki/Suetonius_Grant_Heatly


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Sulphur dioxide and nitrogen emissions can bind to water creating acid rain

To dig up coal, we have to create mines which can be dangerous and not very nice to look at.

Transporting coal by lorry and train from the mine to the power station causes pollution.

Of all energy sources, burning coal releases the most greenhouse gases which may add to

global warming

Coal is a non-renewable source and will run out in about 100 years

Coal miners can be affected by black lung disease or pneumoconiosis and also emphysema if

they breathe in too much of the coal dust.

USE OF CLEAN COAL TECHNOLOGY

Clean coal technology is a collection of technologies being developed to mitigate theenvironmental impact ofcoal energy generation. When coal is used as a fuel source, the gaseousemissions generated by the thermal decomposition of the coal include sulphur dioxide, nitrogen

dioxide, carbon dioxide, and other chemical by products that vary depending of the type of the

coal being used. These emissions have been established to have a negative impact on theenvironment, contributing to acid rain and climate change. As a result, clean coal technologies

are being developed to remove or reduce pollutant emissions to the atmosphere. Some of the

techniques that would be used to accomplish this include chemically washing minerals and

impurities from the coal,gasification treating theflue gases withsteam to removesulphurdioxide, carbon capture and storage technologies to capture the carbon dioxide from theflue

gas and dewatering lower rank coals (brown coals) to improve thecalorific value,and thus the

efficiency of the conversion intoelectricity.

Clean coal technology usually addresses atmospheric problems resulting from burning coal.Historically, the primary focus was on sulphur dioxide and particulates, since it is the most

important gas in the causation ofacid rain.More recent focus has been on carbon dioxide (due to

its impact onglobal warming)as well as other pollutants. Concerns exist regarding the economicviability of these technologies and the timeframe of delivery, potentially high hidden economic

costs in terms of social and environmental damage, and the costs and viability of disposing of

removed carbon and other toxic matter.

One of the major disadvantages of using coal is that the combustion of coal is a major source of

greenhouse gases and other pollutants. Clean coal technology helps in reducing air emissions andother pollutants from power plants that use coal for power generation. Some companies are using

innovate techniques to clean coal and reduce emissions.
http://en.wikipedia.org/wiki/Coalhttp://en.wikipedia.org/wiki/Mineralhttp://en.wikipedia.org/wiki/Gasificationhttp://en.wikipedia.org/wiki/Fluehttp://en.wikipedia.org/wiki/Steamhttp://en.wikipedia.org/wiki/Sulfur_dioxidehttp://en.wikipedia.org/wiki/Sulfur_dioxidehttp://en.wikipedia.org/wiki/Carbon_capture_and_storagehttp://en.wikipedia.org/wiki/Flue_gashttp://en.wikipedia.org/wiki/Flue_gashttp://en.wikipedia.org/wiki/Brown_coalhttp://en.wikipedia.org/wiki/Calorific_valuehttp://en.wikipedia.org/wiki/Electricityhttp://en.wikipedia.org/wiki/Acid_rainhttp://en.wikipedia.org/wiki/Global_warminghttp://en.wikipedia.org/wiki/Global_warminghttp://en.wikipedia.org/wiki/Acid_rainhttp://en.wikipedia.org/wiki/Electricityhttp://en.wikipedia.org/wiki/Calorific_valuehttp://en.wikipedia.org/wiki/Brown_coalhttp://en.wikipedia.org/wiki/Flue_gashttp://en.wikipedia.org/wiki/Flue_gashttp://en.wikipedia.org/wiki/Carbon_capture_and_storagehttp://en.wikipedia.org/wiki/Sulfur_dioxidehttp://en.wikipedia.org/wiki/Sulfur_dioxidehttp://en.wikipedia.org/wiki/Steamhttp://en.wikipedia.org/wiki/Fluehttp://en.wikipedia.org/wiki/Gasificationhttp://en.wikipedia.org/wiki/Mineralhttp://en.wikipedia.org/wiki/Coal


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FOLLOWING ARE SOME OF THE ADVANCED TECHNOLOGIES OF COAL USAGE

SUPERCRITICAL AND ULTRA SUPERCRITICAL PULVERIZED COAL

COMBUSTION:This power plant type achieves high conversion efficiencies applying

supercritical steam conditions (higher pressure and temperature of the steam).

INTEGRATED GASIFICATION COMBINED CYCLE (IGCC): This technology appliescoal gasification with combustion of the coal gas in a gas turbine and the recovery of waste heat

in a boiler.

DIRECT COAL FIRED COMBINED CYCLE:Like the IGCC plant this technology is

applying a gas turbine and a steam turbine in a combined cycle. However, the coal is directlyburnt in the gas turbine without previous gasification.

UNDERGROUND COAL GASIFICATION:This is a process to gasify coal in-situ. In

addition to many other advantages, this process can avail the coal mines which are otherwise notaccessible.

COAL TO LIQUID (CTL): This is a process to convert coal to liquid fuels.

Coal Gasification technologies for coal with high ash is to be developed, and it should be

achieved in a decade or so. It will give a better and cleaner way of utilizing Indian coal.

INVENTORY OF GEOLOGICAL RESOURCES OF COAL IN INDIA

As a result of exploration carried out up to the maximum depth of 1200 metre by the GSI,

CMPDI, SCCL, MECL, DGM(Maharashtra) and DGM(Chhattisgarh) etc., a cumulative total of

2,93,497 Million Tonnes of Geological Resources of Coal have so far been estimated in thecountry as on 1.4.2012. The details of state-wise geological resources of coal are given as under:

(A) : GONDWANA COALFIELDS

(in Million Tonnes)

State Geological Resources of Coal

Proved Indicated Inferred Total

Andhra Pradesh 9566.61 9553.91 3034.34 22154.86

Assam 0 2.79 0 2.79

Bihar 0 0 160.00 160.00

Chhattisgarh 13987.85 33448.25 3410.05 50846.15

Jharkhand 40163.22 33609.29 6583.69 80356.20

Madhya Pradesh 9308.70 12290.65 2776.91 24376.26Maharashtra 5667.48 3104.40 2110.21 10882.09

Orissa 25547.66 36465.97 9433.78 71447.41

Sikkim 0 58.25 42.98 101.23

Uttar Pradesh 884.04 177.76 0 1061.80

West Bengal 12425.44 13358.24 4832.04 30615.72

Total 117551.01 142069.51 32383.99 292004.51


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(B) : TERTIARY COALFIELDS

(in Million Tonnes)

State Geological Resources of Coal

Proved Indicated Inferred

(Exploration)

Inferred(Mapping) Total

Arunachal Pradesh 31.23 40.11 12.89 6.00 90.23

Assam 464.78 42.72 0.50 2.52 510.52

Meghalaya 89.04 16.51 27.58 443.35 576.48

Nagaland 8.76 0 8.60 298.05 315.41

Total 593.81 99.34 49.57 749.92 1492.64

(Source:http://www.coal.nic.in/reserve2.htm)

CATEGORIZATION OF RESOURCES

The coal resources of India are available in older Gondwana Formations of peninsular India and

younger Tertiary formations of north-eastern region. Based on the results of Regional/Promotional Exploration, where the boreholes are normally placed 1-2 Km apart, the resourcesare classified into Indicated or Inferred category. Subsequent Detailed Exploration in selected

blocks, where boreholes are less than 400 meter apart, upgrades the resources into more reliable

Proved category. The Formation-wise and Category-wise coal resources of India as on1.4.2012 are given in table below:

(in Million Tonnes)

FormationProved Indicated Inferred Total

Gondwana Coals 117551.01 142069.51 32383.99 292004.51

Tertiary Coals 593.81 99.34 799.49* 1492.64

Total 118144.82 142168.85 33183.49 293497.15

* Includes 749.92 M.T. of Inferred resources established through mapping in North-Eastern

region.

TYPE AND CATEGORY-WISE COAL RESOURCES OF INDIA

The Type and Category-wise coal resources of India as on 1.4.2012 are given in table below

(in Million Tonnes)

Type of Coal Proved Indicated Inferred Total

(A) Coking :-

-Prime Coking 4614.35 698.71 0 5313.06

-Medium Coking 12836.84 11951.47 1880.23 26668.54

-Semi-Coking 482.16 1003.29 221.68 1707.13

Sub-Total Coking 17933.35 13653.47 2101.91 33688.73

(B) Non-Coking:- 99617.65 128416.04 30282.09 258315.78

(C) Tertiary Coal 593.81 99.34 799.49 1492.64

Grand Total 118144.81 142168.85 33183.49 293497.15
http://www.coal.nic.in/reserve2.htmhttp://www.coal.nic.in/reserve2.htm


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STATUS OF COAL RESOURCES IN INDIA DURING LAST FIVE YEARS

As a result of Regional, Promotional and Detailed Exploration by GSI, CMPDI and SCCL etc,

the estimation of coal resources of India has reached to 2,93,497 Million Tonnes. The estimates

of coal resources in the country during last 5 years are given below:

(in Million Tonnes)

As on Geological Resources of Coal

Proved Indicated Inferred Total

1.4.2007 99060 120177 38144 257381

1.4.2008 101829 124216 38490 264535

1.4.2009 105820 123470 37920 267210

1.4.2010 109798 130654 36358 276810

1.4.2011 114992 137471 34390 285862

GRADES

The gradation of non-coking coal is based on Useful Heat Value (UHV), the gradation of cokingcoal is based on ash content and for semi coking / weakly coking coal it is based on ash plus

moisture content , as in vogue as per notification.

GRADES OF COKING COAL

Grade Ash Content

Steel GradeI Not exceeding 15%

Steel Grade -II Exceeding 15% but not exceeding 18%

Washery Grade -I Exceeding 18% but not exceeding 21%

Washery Grade -II Exceeding 21% but not exceeding 24%

Washery Grade -III Exceeding 24% but not exceeding 28%Washery Grade -IV Exceeding 28% but not exceeding 35%

GRADES OF NON-COKING COAL

Grade Useful Heat Value (UHV)

(Kcal/Kg) UHV= 8900-138

(A+M)

Corresponding

Ash% + Moisture % at

(60% RH & 40O C)

Gross Calorific Value GCV (Kcal/

Kg) (at 5% moisture level)

A Exceeding 6200 Not exceeding 19.5 Exceeding 6454

B Exceeding 5600 but not

exceeding 6200

19.6 to 23.8 Exceeding 6049 but not exceeding

6454

C Exceeding 4940 but not exceeding

5600

23.9 to 28.6 Exceeding 5597 but not exceeding.

6049D Exceeding 4200 but not exceeding

4940

28.7 to 34.0 Exceeding 5089 but not Exceeding

5597

E Exceeding 3360 but not exceeding

4200


5089

F Exceeding 2400 but not exceeding3360

40.1 to 47.0 Exceeding 3865 but not exceeding.4324

G Exceeding 1300 but not exceeding

2400


3865


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GRADES OF SEMI-COKING AND WEAKLY COKING COAL

Grade Ash + Moisture Content

Semi coking gradeI Not exceeding 19%

Semi coking gradeII Exceeding 19% but not exceeding 24%GRADES OF NEC COAL

Grades UHV (Kcal/Kg) Corresponding

Ash% + Moisture %age

A 6200-6299 18.8519.57

B 56006199 19.5823.91

(Source: http://www.coal.nic.in/welcome.html)

COAL RESERVE

The geological reserves as compiled & computed by Geological Survey of India as on

01/04/2011 in Proved, Indicated and Inferred categories together within the CCL Command Areaamount to 40.946 billion tonnes (up to a depth of 1200 mtrs.). The details of coal reserves are as

under :

RESERVES OF COAL INDIA

TYPE TOTAL

RESERVE

PROVED

RESERVE

INDICATED

RESERVE

INFERRED

RESERVE

COKING 18.243 7.550 9.033 1.660

NON-COKING 22.703 12.613 6.914 3.176

TOTAL 40.946 20.163 15.947 4.836

(source: Annual report of CCL 2011-2012 ; p:40 )

COAL DEMAND

As per revised estimate (MTA), the all India coal demand in the terminal year of XI Plan i.e.2011-12 envisaged at 713.24 Mt as against estimated demand of 731.00 Mt as per XI Plan

document. As per recent assessment done by Planning Commission, likely demand of coal forthe year 2011-12 will be 696.03 Mt. Sector-wise break-up of coal demand for the year 2011-12for Steel, Power utility and others will be 46.67 Mt, 460.00 Mt and 189.36 Mt respectively. At

present, there are 25 completed projects in CCL with rated capacity of 21.25 MT. There are 25

On-going projects. These projects have with rated capacity of 87.95 MTY. The On-goingprojects produced 31.65 MT during 2011-12. Mega ongoing projects like(Magadh 20 MTY,

Amrapali 12 MTY) have not yet taken off due to the absence of coal evacuation system and

difficulty in physical possession of acquired land. All out effort is being made to resolve the

COAL RESERVES IN INDIA

(in billion tonnes) (As on 01/04/2011)


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problems faced by these mines. To boost production further, 9 new projects are to be taken up

during the XIIth plan period.

CHRONOLOGICAL SEQUENCE OF RESTRUCTURING OF COAL INDIA LIMITED

IS SHOWN IN THE CHART BELOW

Source : http://www.mcl.gov.in/About/eformation.php

November 1975

Constitution of Holding Company

Coal India Limited

NEC, DCC

ECL BCCL CMPDIWCLCCL

January 1986 Further reorganization

Coal India Limited

NEC, DCC

ECL CMPDISECLWCLNCLCCLBCCL

Further reorganization

Coal India Limited (NEC,DCC) (IICM)

NEC DCC

MCLCMPDISECLWCLNCLCCLBCCLECL


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COUNTRY COAL PRODUCTION

India 339,000,000

US 1,060,000,000

UK 66,100,000France 20,890,000

Italy 22,400,000

Canada 67,000,000

China 1,310,000,000

Japan 149,500,000

(Source:http://www.eai.in/ref/fe/coa/coa.html)

PRESENT STATUS OF COAL INDIA LIMITED AND ITS SUBSIDIARY COMPANIES

COAL INDIA LIMITED

Coal India Limited (CIL) as an organized state owned coal mining corporate came into being inNovember 1975 with its registered office at 10 Netaji Subhas Road, Kolkata West Bengal

700001, India. The Mission of Coal India Limited is to produce the planned quantity of coal,efficiently and economically with due regard to safety, conservation and quality. With a modest

production of 79 Million Tonnes (MTs) at the year of its inception CIL today is the single largest

coal producer in the world. Operating through 81 mining areas CIL is an apex body with 7wholly owned coal producing subsidiaries and 1 mine planning and Consultancy Company

spread over 8 provincial states of India. CIL also fully owns a mining company in Mozambique

christened as 'Coal India Africana Limitada'. CIL also manages 200 other establishments likeworkshops, hospitals etc. Further, it also owns 26 technical & management training institutes and

102 Vocational Training Institutes Centres. Indian Institute of Coal Management (IICM) as a

state-of-the-art Management Training 'Centre of Excellence' - the largest Corporate TrainingInstitute in India - operates under CIL and conducts multi disciplinary management development

programmes. CIL having fulfilled the financial and other prerequisites was granted

the Maharatna recognition in April 2011. It is a privileged status conferred by Government ofIndia to select state owned enterprises in order to empower them to expand their operations and

emerge as global giants.

Coal India Limited was born as a holding company with Rs.750 Crores as its Authorized Capital,

and Five Subsidiary Companies including Central Mine Planning & Design Institute under it.

The process of amalgamation of mines into bigger units started. The 925 taken-over Mines,together with 44 NCDC Mines were re-organized into 374 Mines. The national coal production

which stood at a level of 77.87 Million Tonnes during 1973-74, reached a level of 533.1 Million

Tonnes by 2010-11. Today, Coal India has eight Subsidiary Companies including CMPDI, andis one of the largest Corporate Employers of the world, employing about 3.83 Lakh people. CIL

produced 431.32 Million Tonnes of coal during the year 2010-11. Presently, about 90.72% of

CIL's production comes from Opencast Mines.CIL Produces around 81.1% of India's overall

coal production Thus, plays a key role in "India Growth Story" and making India incorporateglobally competitive.
http://www.eai.in/ref/fe/coa/coa.htmlhttp://www.eai.in/ref/fe/coa/coa.html


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HISTORY AND FORMATION OF COAL INDIA LIMITED

With dawn of the Indian independence a greater need for coal production was felt in the First

Five Year Plan. In 1951 the Working Party for the coal Industry was set up which included

representatives of coal industry, labour unions and government which suggested theamalgamation of small and fragmented producing units. Thus the idea for a nationalized unifiedcoal sector was born. Integrated overall planning in coal mining is a post-independence

phenomenon. National Coal Development Corporation was formed with 11 collieries with the

task of exploring new coalfields and expediting development of new coal mines.

FORMATION OF COAL INDIA LIMITED

With the Government's national energy policy the near total national control of coal mines in

India took place in two stages in 1970s. The Coking Coal Mines (Emergency Provisions) Act1971 was promulgated by Government on 16 October 1971 under which except the captive

mines of IISCO, TISCO, and DVC, the Government of India took over the management of all

226 coking coal mines and nationalised them on 1 May, 1972. Bharat Coking Coal Limited was

thus born. Further by promulgation of Coal Mines (Taking over of Management) Ordinance1973 on 31 January 1973 the Central Government took over the management of all 711 non-

coking coal mines. In the next phase of nationalization these mines were nationalized with effect

from 1 May 1973 and a public sector company named Coal Mines Authority Limited (CMAL)was formed to manage these non coking mines.

A formal holding company in the form of Coal India Limited was formed in November 1975 to

manage both the companies.

Coal India is a holding company with seven wholly owned coal producing subsidiary companies

and one mine planning & consultancy company. It encompasses the whole gamut ofidentification of coal reserves, detailed exploration followed by design and implementation and

optimizing operations for coal extraction in its mines. The producing companies are:

1. Eastern Coalfields Limited (ECL), Sanctoria, West Bengal

2. Bharat Coking Coal Limited (BCCL), Dhanbad, Jharkhand

3.

Central Coalfields Limited (CCL), Ranchi, Jharkhand

4. South Eastern Coalfields Limited (SECL), Bilaspur, Chattisgarh

5.

Western Coalfields Limited (WCL), Nagpur, Maharashtra

6. Northern Coalfields Limited (NCL), Singrauli, Madhya Pradesh

7. Mahanadi Coalfields Limtied (MCL), Sambalpur, Orissa

8. Coal India Africana Limitada, Mozambique


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9. The consultancy company is Central Mine Planning and Design Institute Limited (CMPDIL),

Ranchi, Jharkhand

DESCRIPTION OF THE SUBSIDIARIES OF C.I.L.,

1. EASTERN COALFIELDS LIMITED (ECL), SANCTORIA, WEST BENGAL

E.C.L with its headquarters at Sanctoria in the Burdwan district of West Bengal , has under its

jurisdiction in Raniganj coalfields in West Bengal. Raniganj Coalfield, which falls under E.C.L

is the birth place of coal mining in the Country. In 1973, all Non-coking Coal Mines werenationalized and brought under Eastern Division of Coal Mines Authority Limited. In 1975

Eastern Coalfields Limited, a Subsidiary of Coal India Limited (C.I.L) was formed and inherited

all the private sector coal mines of Raniganj Coalfields. ECL mining leasehold area is 753.75Sq.Kms and surface right area is 237.18 Sq.Kms. It is situated in two States-West Bengal and

Jharkhand. At present ECL has 105 no. of operating mines out of which 81 are underground

mines, 24 are opencast mines. The existing manpower in Eastern Coalfields Limited ason 1.4.2012 is 78005, out of which female employees are 7094 (9.09%).As on 1.4.2011, the total

coal reserve in ECL command area upto 600 metre depth is 47.08 Billion tone out of which

29.72 billion tone is in the State of West Bengal and 17.36 Billion tone is in the State of

Jharkhand. Total proved reserve in the state of West Bengal is 11.63 billion tonnes and 4.19billion tones is in the State of Jharkhand

2. BHARAT COKING COAL LIMITED (BCCL), DHANBAD, JHARKHAND

Bharat Coking Coal Limited (BCCL) is a Public Sector Undertaking engaged in mining of coal

and allied activities. BCCL meets almost 50% of the total prime coking coal requirement of the

integrated steel sector. BCCL was incorporated in January, 1972 to operate coking coal mines(214 Nos) operating in the Jharia & Raniganj Coalfields, taken over by the Govt. of India on

16th Oct, 1971 to ensure planned development of the scarce coking coal resources in the country.

Currently, the Company operates 81 coal mines which include 40 underground, 18 opencast &23 mixed mines as on 01.04.2010.The Company also runs 6 coking coal washeries, 2 non-coking

coal washeries. The mines are grouped into 13 areas for administrative convenience. The total

manpower as on 1.4.05 was 92,268 and as on 01.03.2010 is 72,222.The overall growth in theproductivity is 18.18 % .It has earned a Rs. 822.36 Crores profit during 2011- 12. The company

has 30.20 Million ton coal production, highest since inception with 4.12% growth. The total turn

over is Rs. 8583.87 Crores, ever highest since inception with 23 .97% growth.

3. CENTRAL COALFIELDS LIMITED (CCL), RANCHI, JHARKHAND

Central Coalfields Limited is a Category-I Mini-Ratna Company since October 2007. During2009-10, coal production of the company reached its highest-ever figure of 47.08 million tones,

with net worth amounting to Rs. 2644 crore against a paid-up capital of Rs. 940 crore. Formed

on 1st November 1975, CCL (formerly National Coal Development Corporation Ltd) was one of

the five subsidiaries of Coal India Ltd. which was the first holding company for coal in thecountry (CIL now has 8 subsidiaries).The CMAL, with its three divisions continued upto 1st

November 1975 when it was renamed as Coal India Limited (CIL) following the decision of


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Govt. of India to restructure the coal industry. The Central Division of CMAL came to be known

as Central Coalfields Limited and became a separate company with the status of a subsidiary of

CIL, which became the holding company. The Mission of CCL is "To become a World class,

Innovative, Competitive & Profitable Coal Mining Operation to achieve Customer Satisfaction

as top priority." CCL with its headquarters in Ranchi, owns 58 operative mines (21 undergroundand 37o pen cast mines ) and 7 Washeries out of which 4 Coaking Coal Washeries are at

Kathara, Rajrappa, Kedla & Sawang throughput capacity of 9.35 MTPA and 3 Non-Coking CoalWasheries at Piparwar, Kargali & Gidi throughput capacity of 11.72 MTPA. CCl has 6

Coalfields (East Bokaro, West Bokaro, North Karanpura, South Karanpura, Ramgarh & Giridih).The total no of manpower is 50026As on 01.04.012. The CCLs overall objectives is CoalMining through efficiently operated mines, fulfilling coal needs of the customer in terms of

quantity, focus on quality, value addition and providing beneficiation to the satisfaction of the

customer and marketing of coal as main product.

4. SOUTH EASTERN COALFIELDS LIMITED (SECL), BILASPUR, CHATTISGARH

South Eastern Coalfields Limited is the largest coal producing company in the country. SECL isalso a new subsidiary of CIL which started functioning from 1

stApril, 1986. This company has

been registered under the companies Act on 28th

November 1985. It is one of the eight

subsidiaries of Coal India Limited (A Govt. of India Undertaking) under the Ministry of Coal.The company was adjudged the best PSU in the country for 97-98 and was awarded Jawaharlal

Nehru Memorial National Award for pollution control and energy conservation in the year 2003,

Excellence award in 2004, 2006 and 2008 National safety award from Hon'ble President of India

in 2004,2005 and 2006. SECL has been awarded "Mini Ratna" Status by Govt of India in2007 . Total Coal Production in the year 2011-12 is 113.84 Million Tonnes out of total coal

production of 435.84 million tonnes produced by Coal India Ltd. which is highest among all

subsidiaries of Coal India Ltd and among all coal producing companies in India. SECL has beenmaking profits since its inception. The Total production from UG is 16.41 Mill te ,Opencast is97.43 Mill te and total OB is 113.49 MCUM. The Total Offtake in financial year 2011-12 is

115.15 Mill Te . The coal deposits of SECL occur in five districts i.e. Bilaspur, Korba, Raigarh,

Surguja & Korea in Chhattisgarh and three districts Shahdol, Umaria, Anuppur district inMadhya Pradesh. This occurs in the great Son Mahanadi master basin. SECL has 92 Mines.

Total UG Mines are 70 and Total OC mines are 21. There is 1 mixed mine. There are 42 UG

Mines ,13 OC Mines , 1 Mixed Mines in Chhattisgarh and 28 UG Mines , 8 OC Mines inMadhya Pradesh. These mines are divided into 13 Administrative areas -1.Johilla area

2.Sohagpur area 3.Jamuna & kotma area 4.Hasdeo area 5.Chirimiri area 6.Baikunthpur

area 7.Bisrampur area 8.Bhatgaon Area 9.Korba area 10.Gevra area 11.Kusmunda

area 12.Raigarh area13.Dipkaarea. The manpower of the Company as on 31stMarch, 2012stood at 76078.

5. WESTERN COALFIELDS LIMITED (WCL), NAGPUR, MAHARASHTRA

Western Coalfields Limited (WCL) is one of the eight Subsidiary Companies of Coal India

Limited (CIL) which is under administrative control of Ministry of Coal. The Company

incorporated under the Companies Act, 1956 has its registered office at Coal Estate, Civil Lines,


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Nagpur440001. WCL has been conferred "Miniratna" status on 15th March'2007. Western

Coalfields Limited (WCL) is one of the Eight Subsidiary Companies of Coal India Limited,

contributing about 8.19% of the national coal production. The company came into existence on

1st November, 1975, after re-organization of the Nationalized Coal Industry. At that juncture,

the operations of WCL were spread over in the States of Maharashtra, Madhya Pradesh andOrissa, organized into 2 Divisions and 12 operational Areas. By the year 1985-86, the number of

mines in WCL had increased to 130 and the total production to 48.89 Million Tonnes from thethen WCL. Keeping in view the tremendous growth programme, the Company was bifurcated,

with effect from January 1986, into South Eastern Coalfields Limited and the present Western

Coalfields Limited (WCL). The present WCL has mining operation spread over in the States ofMaharashtra (in Nagpur, Chandrapur & Yeotmal Districts) and in Madhya Pradesh (in Betul and

Chhindwara Districts). The turnover of the company during the year 2010-11 was Rs.7073.44

crores against budgeted Rs.6765.74 crores. The net profit for the year is Rs.1067.97 crores

against budget of Rs.386.12 crores. The total sales realization during 2010-11 was Rs.7314crores. The Command Area of WCL has coal inventory of 13,547 Million Tonnes of coal,

against All India coal inventory of 2,85,862* Million Tonnes (as on 01.04.2011).The miningoperations of WCL are organized into 10 Areas, 7 located in the State of Maharashtra and 3 inMadhya Pradesh. The overall man productivity of the Company has increased from a level of

0.70 Tonnes to 2.65 Tonnes during the period 1973-74 to 2010-11.Despite increase in production

from a level of 24.74 Million Tonnes to 43.65 Million Tonnes during the period 1991-92 to2010-11, WCL is able to gradually reduce its overall manpower and increase production and

productivity. As on 31stMarch 85742 which has increased up to 59043 as on 31

stmarch 2011.

6.

NORTHERN COALFIELDS LIMITED (NCL), SINGRAULI, MADHYA PRADESH

Northern Coalfields Limited was formed in April 1986 as a subsidiary company of Coal India

Limited. Its headquarter is located at Singrauli, Distt. Sidhi (M.P.). The area of SingrauliCoalfields is about 2202 Sq.Km. The coalfield can be divided into two basins, viz. Moher sub-basin (312 Sq.Km.) and Singrauli Main basin (1890 Sq.Km.).The coal supplies from NCL has

made it possible to produce about 10515 MW of electricity from pithead power plants of

National Thermal Power Corporation (NTPC), Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd(UPRVUNL) and Renupower division of M/s. Hindalco Industries. NCL has ten working

Opencast Coal Projects, which produced 66.253 Million Tonnes of coal during 2010-11. The

productivity in terms of OMS (out put per man shift) of NCL during 2010-11 was 13.52 Tonnes. Manpower strength of the company as on 31

stMarch 2012 was 16329 against 16209 as on 31

st

March 2011. The NCL has achieved coal production of 66.40 million tonnes during the year

2011-2012 with a growth of 0.22 %over actual production of 66.253 million tonnes during the

year 2010-2011.The Company has achieved a turnover of Rs 7916.52 crores during the year2011-2012 as against Rs 7655.34 crores during the year 2010-2011 recorded a growth of 3.41 %.

7. MAHANADI COALFIELDS LIMTIED (MCL), SAMBALPUR, ORISSA

Mahanadi Coalfields Limited (MCL) is one of the major coal producing company of India. It is

one of the eight subsidiaries ofCoal India Limited. Mahanadi Coalfields Limited was carved out

ofSouth Eastern Coalfields Limited on 3rd

April, 1992 with its headquarter at. - Jagriti Vihar,
http://en.wikipedia.org/wiki/Coal_India_Limitedhttp://en.wikipedia.org/wiki/South_Eastern_Coalfields_Limitedhttp://en.wikipedia.org/wiki/South_Eastern_Coalfields_Limitedhttp://en.wikipedia.org/wiki/Coal_India_Limited


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Burla District : Sambalpur - 768020, OrissaSambalpur. It has its coal mines spread

acrossOrissa. Mahanadi Coalfields Limited has only two coalfields- Talcher Coalfield and Ib

River Coalfield. There are 45 sanctioned mining projects in MCL with a capacity of 190.83 Mty

of coal. Manpower strength of the company as on 1.04.2011 was 21425 against 20978 as on

1.04.2010.

8. CENTRAL MINE PLANNING AND DESIGN INSTITUTE LIMITED (CMPDIL)

Central Mine Planning & Design Institute Limited (CMPDI) is a fully owned subsidiary of CoalIndia Limited (CIL) and a Schedule-B company having its corporate headquarters at Ranchi .

CPMDI is located at Gondwana Place, Kanke Road, Ranchi - 834 031, Jharkhand, India. It is a

Mini Ratna (Category II) company since May 2009 and ISO 9001 certified since March 1998. Ithas received Geospatial World Excellence Award 2012in recognition of excellent usage of

Geospatial technology for Land Reclamation Monitoring of Coal Mines and adjudged the Best

performing Subsidiary Company of CIL for the year 2008-09 as per MoU rating. CMPDI is

awarded Commendation Certificate of SCOPE Meritorious Award for R&D, TechnologyDevelopment & Innovation for the year 2009-10. CMPDI functions through its corporate

headquarters at Ranchi and its Regional Institutes (RIs) numbered 1 to 7 located at Asansol,

Dhanbad, Ranchi, Nagpur, Bilaspur, Singrauli, and Bhubaneswar respectively along withvarious field units and exploration camps.

FINDINGS

Coal is the most abundant fuel resource in India. It is the prime source of energy and perhaps the

largest contributor to the industrial growth of the country. It is a crucial and enduring element in

a modern, balanced energy portfolio, providing a bridge to the future as an important low costand secure energy solution to sustainability challenges. Coal India Limited (CIL) is the largest

company in the world in terms of coal production. Coal continues to be the major source ofprimary commercial energy worldwide. Considering the limited reserve potentiality of petroleumand natural gas, eco-conservation restriction on hydel projects and geo-political perception of

nuclear power, coal will continue to occupy the centre stage of Indias energy scenario. Share of

coal in worlds energy consumption is 27%. The importance of coal in India can be gauged bythe fact that it supports about 54.5% of the commercial energy in the country. Coal has an

immensely valuable role in this respect, complementing other fuels and energy sources that are

generally more vulnerable to disruption.

DISCUSSION

Sustainable development is a broad goal, with three recognized pillars economic, social andenvironmental. Coal has a major future role to play in all three pillars. Coal makes a significanteconomic contribution to the global economy. For consumers, coal offers excellent value. In

most circumstances, it is cheaper per energy unit than other fuels, and as a result it has remained

the fuel of choice for electricity generation on a global basis.

Coal mining can and does provide a significant direct contribution to economic development at a

local level, particularly in the poorer parts of the world. Large-scale mines are often the biggest
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source of income for rural communities. In addition to providing wages for local people, they are

also the source of much local economic and social infrastructure roads, transport, education,

water and communications. Coal is a major provider of the energy that is needed for

development and is not going to disappear. It is therefore important that clean coal technology

continues to improve, as will happen in the right policy environment. The challenge is to ensurethat advanced coal technology, along with other promising options including renewable, can be

fully explored as part of a more sustainable energy future. The coal industry recognizes the needto improve the environmental acceptability of its product. Furthering the development and

deployment of new coal utilization technology is a key priority area, and has an important policy

dimension. Coal producers are ready to work with others customers, suppliers, governments,international agencies, and civil society in pursuit of the common goal of sustainable

development.

CONCLUSION

Coal mining is a critical contributor to many economies and makes a substantial contribution forimproving the livelihoods of many. This is especially true in developing countries, allowing

them to address the challenges of poverty and development. Coal will play a major role

complementing renewable energy sources and will be a key source of energy to address gaps inwind and solar powered electricity. Coal, the most important fossil fuel in India is vital for its

energy security. While coal is poised for significant growth, it faces significant and mounting

social and environmental challenges. Even with its major hurdles, coal will remain a futuremainstay, a foundation and a fundament of our economy. Coal has a crucial role in meeting

current needs and is a resource bridge to meet future goals through the enhancement ofknowledge and technology. The challenge is to apply the right technology in the most efficient

and environmentally friendly way.

REFERENCES

1. Annual Report 2011-2012, Central Coalfield Limited, p:84,85,87

2. http://www.coal.nic.in/welcome.html

3. Report of the central wage board for the Coal mining Industry(Vol.I), Delhi, 1967, p.8

4. http://www.coalindia.in/Company.aspx?tab=3

5. http://www.worldcoal.org/coal/

6.

http://www.worldcoal.org/coal/

7. http://www.worldcoal.org/coal/

8. http://www.coal.nic.in/welcome.html

9. http://en.wikipedia.org/wiki/Coal_mining_in_India
http://www.coal.nic.in/welcome.htmlhttp://www.worldcoal.org/coal/http://www.worldcoal.org/coal/http://www.worldcoal.org/coal/http://www.coal.nic.in/welcome.htmlhttp://www.coal.nic.in/welcome.htmlhttp://www.worldcoal.org/coal/http://www.worldcoal.org/coal/http://www.worldcoal.org/coal/http://www.coal.nic.in/welcome.html


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10.http://www.coalindia.in/Company.aspx?tab=3

11.

http://www.coal.nic.in/abtcoal.htm

12.

http://www.eai.in/ref/fe/coa/coa.html

13.http://etvision2035.in/coal/?page_id=14

14.http://www.coal.nic.in/reserve2.htm

15. http://www.coal.nic.in/welcome.html)

16.http://www.coalindia.in/Company.aspx?tab=0

17.http://www.easterncoal.gov.in/corporate.html

18.

http://www.bccl.gov.in/

19.http://ccl.gov.in

20.http://www.secl.gov.in/

21.http://westerncoal.gov.in/sites/default/files/userfiles/WCL%20AN%20OVERVIEW%202

010-11.pdf

22.http://ncl.nic.in/default.htm

23.http://www.mcl.gov.in/rtidocs/4(b)-xvi.php

24.http://www.cmpdi.co.in/ri.php
http://www.coalindia.in/Company.aspx?tab=3http://www.coalindia.in/Company.aspx?tab=3http://www.coal.nic.in/abtcoal.htmhttp://www.eai.in/ref/fe/coa/coa.htmlhttp://www.eai.in/ref/fe/coa/coa.htmlhttp://etvision2035.in/coal/?page_id=14http://etvision2035.in/coal/?page_id=14http://www.coal.nic.in/reserve2.htmhttp://www.coal.nic.in/reserve2.htmhttp://www.easterncoal.gov.in/corporate.htmlhttp://www.easterncoal.gov.in/corporate.htmlhttp://www.bccl.gov.in/http://www.bccl.gov.in/http://ccl.gov.in/http://ccl.gov.in/http://www.secl.gov.in/http://www.secl.gov.in/http://www.mcl.gov.in/rtidocs/4(b)-xvi.phphttp://www.mcl.gov.in/rtidocs/4(b)-xvi.phphttp://www.mcl.gov.in/rtidocs/4(b)-xvi.phphttp://www.secl.gov.in/http://ccl.gov.in/http://www.bccl.gov.in/http://www.easterncoal.gov.in/corporate.htmlhttp://www.coal.nic.in/reserve2.htmhttp://etvision2035.in/coal/?page_id=14http://www.eai.in/ref/fe/coa/coa.htmlhttp://www.coal.nic.in/abtcoal.htmhttp://www.coalindia.in/Company.aspx?tab=3

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