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South Eastern Coalfields Ltd  
Industry : Mining / Minerals / Metals
BSE Code:NSE Symbol:NAP/E :0
ISIN Demat:Div & Yield %:0EPS :4457.94
Book Value:9488.7684181Market Cap (Rs.Cr):0Face Value :1000


Dear Members,

South Eastern Coalfields Limited

It gives me immense pleasure to present, on behalf of the Board of Directors of your Company, the 26th Annual Report and Audited Statements of Accounts for the year ended 31st March, 2012, together with the Auditors Report and comments on the Accounts by the Comptroller & Auditor General of India (C&AG).


The coal reserves of South Eastern CoalfieldsLimited are spread over in two States, namely, Chhattisgarh and Madhya Pradesh and the Company is operating 90 mines with 35 Mines in the State of Madhya Pradesh and 55 Mines in the State of Chhattisgarh besides a Coal Carbonization Plant namely Dankuni Coal Complex (DCC) at Dankuni in West Bengal, on lease basis from Coal India Limited.

For effective administrative control and operations, the mines have been grouped in three Coalfields, namely, Central India Coalfields (CIC), Korba Coalfields and Mand-Raigarh Coalfields with 13 operating

Areas, as under:

A. Central India Coalfields
1. Chirimiri Area. 5. Bhatgaon Area
2. Baikunthpur Area 6. Jamuna & Kotma Area
3. Bisrampur Area 7. Sohagpur Area
4. Hasdeo Area 8. Johilla Area
B. Korba Coalfields
1. Korba Area
2. Kusmunda Area
3. Dipka Area
4. Gevra Area
C. Mand-Raigarh Coalfields
1. Raigarh
D. Dankuni Coal Complex


Your Company has recorded sustained growth in all key physical and financial parameters in the financial year 2011-12. The important physical & financial highlights during the year 2011-12, are as under:

• The Company achieved a record production in the current year. The coal production during the year is 113.84 Million Tonnes (MT) registering a growth of 1.00% over the previous year.

• The Productivity in terms of output per manshift (OMS), SECL has achieved 6.44 of OMS against AAP Target of 6.19.

• The Company achieved an all time high Gross Sales value of Rs. 19,036.48 Crore against the previous year’s Gross Sales of Rs. 13,167.61 Crore, registering a growth of 44.57% over previous year. There is a continuous improvement in realization. The realization during the year is Rs. 19,010.25 Crore which is 99.86% of the current year’s gross sales.

• The Profit Before Tax (PBT) during the year is Rs. 6,002.87 Crore against previous year’s PBT of Rs. 3,777.12 Crore.

• The Company has been consistent in payment of dividend since 1995-96. The interim dividend of Rs. 911.84 Crores has been paid on Equity Share Capital. Further, Rs. 1,547.37 Crores has been proposed as final dividend on paid up Equity Share Capital.


Production performance of SECL for the financial year 2011-12 as compared to the target and achievement of the previous year is given below:

(Fig. in Million Tonnes)

Raw Coal Production Target Actual 2010-11 Actual %age achievement against target %age growth over previous year
Coking Coal 0.130 0.189 0.163 145.38 15.95
Non-Coking Coal 111.870 113.648 112.542 101.59 0.98
Total 112.000 113.837 112.705 101.64 1.00

3.1 Production from Underground and Opencast Mines:

The production of Coal from Underground and Opencast Mines during the year 2011-12 vis--vis 2010-11, is tabulated below:

(Fig. in Million Tonnes)

2011-12 2010-11
Raw Coal Production Target Actual Actual %age achievement against target %age growth over previous year
Underground Mines 18.150 16.408 16.803 90.40 -2.35
Opencast Mines 93.850 97.429 95.902 103.81 1.59
Total 112.000 113.837 112.705 101.64 1.00

3.2 Coal Production and Overburden Removal from Opencast Mines:

2011-12 2010-11
PARAMETERS target AAP Actual Actual %age achievement over target %age growth over last year
Coal Production (in Million Tonne) 93.850 97.429 95.902 103.81 1.59
Overburden Removal (M. Cu.Mtrs.) 153.000 113.493 137.565 74.18 -17.50

3.3 Mechanized Underground Coal Production:

The Mechanized Coal Production from Underground mines during the year 2011-12 was 16.16 million tonnes as compared to last year’s 16.50 million tonnes.

3.4 Productivity:

The productivity in terms of Output per Manshift (OMS) is given hereunder:

2011-12 2010-11
Productivity Target AAP Actual Actual %age achievement against target %age growth over previous year
Underground Mines 1.38 1.30 1.32 94.20 -1.52
Opencast Mines 19.00 19.31 20.22 101.68 -4.45
Overall 6.19 6.44 6.47 104.04 -0.46

3.5 Coal Stock:

The stock of Raw Coal as on 31st March, 2012 was 9.298 million tonnes against the closing stock of 10.615 million tonnes as on 31st March, 2011.


4.1 The Company has earned a profit before tax in the year 2011-12 Rs. 6002.87 Crores as against a profit of Rs. 3777.12 Crores in the previous year. The financial performance of the Company, for the year 2011-12 vis--vis 2010-11, is furnished below:

( Rs. in Crore)

Sl.no. Particulars Amount Amount
1 Profit before tax for the year 2010-11 3777.12
2 Factors contributing to decrease in profit:
i Increase in Salary & Wages due to:
a) NCWA-IX including their Actuarial impact 966.26
b) Incremental effect of DA, PLRS (Bonus) and impact of Actuarial
Provisions, Settlement Allowance 443.29
ii Increase in Power & Fuel Cost due to increase in power tariff, fuel cost, etc. 42.81
iii Increase in Depreciation due to addition and exchange rate variation 61.09
iv Increase in Cost of Materials Consumed due to increase in value and Increase in Repairs & other cost due impact of MARC 48.33
v Increase in Contractual Expenses due to increase in Coal transport and Surface Miner cost but less OBR transport 26.74
vi Increase due to Provision for Mine Closure Plan, Underloading Charges and For Bad Debt 261.73
vii Provision for OBR Adjustment required due to less OB Removal 355.10 2205.35
3 Factors contributing to increase in profit:
i Increase in sale due to increase in dispatch and GCV Impact 4359.07
ii Impact of Decretion in Stock -279.79
iii PPA Income 33.43
iv Net Increase in profit due to decrease in Finance Cost & Other expenditure and increase in Welfare expense 7.60
v Increase in profit due to increase in Other Income (net of extraordinary item) 310.79 4431.10
Profit before tax for the year 2011-12 6002.87

4.2 financial Results:

The working results for the year as compared to the previous year, are given below:

( Rs. In Crores)

PARTICULARS 2011-12 2010-11
Gross Sales 19,036.48 13167.61
Less : Levies 4,019.85 2510.05
Net Sales 15,016.63 10657.56
Less: Expenditure- Net of income 8548.24 6474.57
Gross margin 6468.39 4182.99
Less : Depreciation 442.74 381.65
Gross Profit 6025.65 3801.34
Less : Interest 22.78 31.37
Profit before Exceptional, Extraordinary items & Tax 6002.87 3769.97
Less : Extraordinary Items 0.00 (7.15)
Profit before tax (PBT) 6002.87 3777.12
Less : Provision for Taxation :
a. Income Tax 2054.86 1183.65
b. Deferred Tax (89.52) 88.39
Less : Adjustment of provision for:
a. Income Tax of earlier years (61.15) 204.26
Profit After Tax(PAT) 4098.68 2300.82
Profit brought forward 3994.08 3575.95
Distributable Surplus 8092.76 5876.77
General Reserve 409.87 230.09
CSR Reserve 56.35 46.95
Interim Dividend 911.84 300.35
Final Dividend on Equity share 1547.37 1080.18
Tax on Dividend 398.95 225.12
3324.38 1882.69
Balance carried to Balance Sheet 4768.38 3994.08

4.3 Dividend:

The Directors have recommended a final dividend of 430.18% ( Rs. 4301.83 per Equity Share) in addition to an interim dividend of 253.50% ( Rs. 2535.00 per Equity share) on 35,97,000 Equity Shares of Rs. 1000/- ( Rs. One thousand) each for the financial year ended 31st March, 2012, thus making the total dividend of 683.68% ( Rs. 6836.83 per Equity Share) amounting to Rs. 2,459.21 Crore (Dividend Tax Rs. 398.95 Crore) for the year 2011-12, as against the total dividend of 383.80% ( Rs. 3838.00 per Equity Share) for the year 2010-11.

26th Annual Report 2011-12


During the year under review, there was no change in the Authroised and Paid-up Capital of the Company, which stood at Rs. 1,300.00 Crore and Rs. 359.70* Crore, respectively.

* The entire Paid up Capital is held by Coal India Limited.


Unsecured Loan:

( Rs. in Crore)

Name of the financial institutions Balance of Loan as on 01.04.2011 Additional Loan availed during the year Repayment of Loan during the year Balance of Loan as on 31.03.2012
1 2 3 4 5
IBRD 139.46 - 17.39 140.23
JEXIM 151.29 - 24.64 148.98
Total 290.75 - 42.03 289.21*

*The closing balance of Rs. 289.21 Crore as on 31st March, 2012 include impact of Rs. 40.49 Crore on account of exchange rate variation (comprising Rs. 18.16 Crore on account of IBRD and Rs. 22.33 Crores on account of JEXIM) on the Balance Sheet date.

The amount due to Coal India Ltd. (CIL) as on 31.03.2012 stands at Rs. 289.21 Crores.


The position of Sundry Debtors (Gross) as on 31st March, 2012 vis-a-vis 31st March, 2011 was as under :

( Rs. in Crore)
As on 31.03.2012 - 710.09
As on 31.03.2011 - 461.23

The Sundry Debtors represented about 0.45 month turnover in 2011-12 as against 0.42 month turnover in 2010-11.

The provision for doubtful debts stood at Rs. 245.81 Crores as on 31st March 2012 as against the provision of Rs. 205.90 Crores as on 31st March 2011.


Two back-to-back loan agreements between Coal India Limited and SECL were signed on 19.03.1998 for procurement of equipment under Coal Sector Rehabilitation Project (CSRP) financed by IBRD and JEXIM

Bank and for implementation of Environmental & Social Mitigation Project (ESMP) a sub-component of CSRP. The disbursement of loan was completed in December, 2003 and the loan utilized was to the extent of US $ 5,36,19,259.86 and JEXIM Bank component of Japanese YEN 588,60,61,854.00.

During the year under review, with the repayment of a portion of the loan, the outstanding loan as on 31st March, 2012 stood at Rs. 289.21 Crores comprising of IBRD loan of US $ 27211963.55 and JEXIM loan of Japanese YEN 2358052995.00.


During the year under report, Rs. 937.65 Crores was invested as capital expenditure on the Projects under construction as well as on the existing Mines/Units for maintenance of production.


During the year under report, the Company has paid Rs. 4054.39 Crores to the exchequer both Central and State by way of Royalty, Sales Tax, Excise Duty, Cess etc., as per the details given below :

( Rs. In Crore)
2011-2012 2010-2011
A Royalty :
- Chhattisgarh 1100.80 1024.26
- Madhya Pradesh 303.73 189.09
Total 1404.53 1213.35
B State -Sales Tax / VAT /Entry Tax/Commercial Tax :
- Chhattisgarh 350.27 247.15
- Madhya Pradesh 114.42 58.56
- West Bengal 4.11 3.30
Total 468.80 309.01
C Central Sales Tax :
- Chhattisgarh 157.20 102.10
- Madhya Pradesh 47.90 29.00
- West Bengal 2.40 1.03
Total 207.50 132.13
d Central Excise Duty :
- Chhattisgarh 542.35 42.63
- Madhya Pradesh 166.13 13.97
- West Bengal 1.33 0.11
Total 709.81 56.71
E Cess/Other Taxes 1263.75 919.35
Grand Total 4054.39 2630.55

Further, the Company has also paid direct Corporate Tax of Rs. 2331.31 Crores during the year.


9.1 Demand Satisfaction (as per AAP target):

Since, the demand of coal during the year under report from the various sectors was 112.00 Million Tonnes and the off-take against the demand was 115.15 Million Tonnes by registering a growth of 5.62% over last year.

The off-take target was achieved, (102.81% of the target). However, it could have been even better had there been no constraint of availability of wagons. There has been positive growth in off-take to all the major sectors. The details of the sectoral demand and off-take are tabulated below:

(Figures in MT)

Demand Off-take Demand satisfaction (in %)
Sector 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11
Power 79.07 76.95 80.37 76.25 102 99
Fertilizer 0.72 0.85 0.74 0.70 103 82
Cement 5.13 4.80 4.80 4.80 94 100
Others 27.06 29.38 29.38 27.25 109 93
Colliery consumption 0.02 0.02 0.02 0.02 100 100
Total 112.00 112.00 115.15 109.02 103 97

Note: - AAP Target has been taken as Demand.

26th Annual Report 2011-12

9.2 dispatches by Various Modes of transport:

The dispatches of coal by various modes of transport during the year 2011-12 were 115.13 million tonnes against 109.00 million tonnes during 2010-11 thereby registering a growth of 5.62%. Barring through "Belt" & "Consumers’ own wagon" modes dispatches, there has been positive growth in dispatches by all other modes. The mode-wise dispatches are shown in the following table: (Figures in MT)

Mode of transport 2011-12 2010-11 growth (%)
Rail 44.36 40.46 9.64%
Road 44.01 41.74 5.44%
Belt 5.02 5.48 -8.39%
MGR 18.97 18.25 3.95%
Consumers’ own Wagons 2.77 3.07 -9.77%
Total 115.13 109.00 5.62%

9.3 Supply and Loading of Wagons:

The details regarding supply and loading of wagons during the year 2011-12, are given below:

2011-12 2010-11
(Figs. in Boxes/Day) growth (%)
(i) Daily Average Target 1926 1892 1.80
(ii) Daily Average Offer 2077 1986 4.58
(iii) Daily Average Supply 1880 1807 4.04
(iv) Daily Average Loading (Raw Coal) 1880 1807 4.04
(v) Daily Average Loading (Washed Coal) 961 950 1.16
(vi) Daily Average Loading (total) (iv + v) 2841 2757 3.05

9.4 e-Marketing of Coal:

The New Coal Distribution Policy (NCDP) was pronounced and circulated by Ministry of Coal., Govt. of India vide O.M. No. 23011/4/2007-CPD dated 18.10.2007. As per the NCDP, previous linkage system of distribution of Coal has been replaced with the system of distribution of Coal through Fuel Supply Agreement as executed between Coal Companies and erstwhile valid linked consumers.

Subsequently, in accordance with the NCDP as approved by Ministry of Coal, Govt. of India, CIL communicated e-Auction Scheme 2007’ (spot e-Auction) for sale of coal under this scheme to the extent of around 10% of the planned production. SECL has successfully offered 142.15 LT for sale through e-auction, thus registering a growth of 25.98%. The performance of the Spot e-Auction during the period 2011-12, is as under:

Period Scheme Offered Qty (tonnes) Booked Qty (tones) Gain over notified price ( Rs. in Crores) % of gain over notified price
2011-12 e-Auction 142.15 127.53 1,234.06 79.03

Forward e-Auction Scheme for consumers has also been launched in SECL. Coal distribution through forward e-Auction is aimed at providing access to coal for such coal consumers who wish to have an assured supply over a long period say one year. 8.39 lakh tonnes coal were offered and 5.44 lakh tonnes coal were booked under this scheme during 2011-12.

9.5 Consumer Satisfaction:

In the present era of globalization and liberalization, the monopolistic position enjoyed by Coal India is no longer a reality. Besides this, the dynamics of business environment has seen the various policy initiatives in the direction of reforms/liberalization of Coal Sector.

The availability of imported coal and other alternative sources of coal and fuel is now a competitive reality.

In this changed scenario, coal quality and consumer satisfaction has become all the more relevant than ever.

The Company has adopted itself to the changed environment which is evident from the fact that there has not been a single major complaint recorded against the total dispatch of 115.15 million tonnes. Thus, the Company maintained 100% consumer satisfaction during the year 2011-12.

In order to ensure complaint free status on quantity front also, the Company has taken action to install Electronic Weighbridges at all the sidings, as a result of which, the Company has achieved 100% compliance in respect of installation of Weighbridges at the sidings.

During the year under report, 115.09 Million Tonnes of weighed coal and 106.89 Million Tonnes of sized coal were dispatched out of the total dispatch of 115.15 Million Tonnes, thus a growth of 5.62% in the dispatch of weighed coal was achieved.

SECL has adopted fully variable Gross Calorific Value (GCV) based system for grading and pricing of Non–Coking coals from existing Useful Heat Value (UHV) system w.e.f. January 1, 2012 as per Gazette Notification No. 2440 dated 30.12.2011 of Ministry of Coal.

This is an international practice of trading of coal which has been recommended for adoption by a number of high level committee including the Integrated Energy Policy Committee. This system ensures a high degree of consistency in quality of coal supplies, and result in high consumer satisfaction. The determination of GCV is being ensured through Bomb Calorimeter in order to have optimum accuracy to gain the consumer confidenceon this system. Further, this has also resulted into high degree of Consumer Satisfaction.


10.1 Population and Performance of Hemms:

(A) Availability and Utilization of HEMM as percentage of Central Mine Planning & Design Institute Limited (CMPDIL) norms during the year 2011-12, is shown as under:

Population in % Age availability %age utilization
Name of Hemm 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11
Dragline 9 9 100 94 63 90
Shovel 74 74 99 100 91 93
Dumper 366 402 106 107 76 72
Dozer 180 161 99 100 62 64
Drill 119 133 112 112 78 90

Percentage availability of draglines, dumpers and drills in SECL during the year 2011-12 is either higher or at par with the CMPDIL norms. Utilization of HEMM during the year 2011-12 was low mainly due to non-availability of land/ restricted working area.

(B) Performance of hEMM under MARC:

Availability and utilization of HEMM under MARC as percentage of CMPDIL norms during the year 2011-12, is shown as under:

Population in % Availability % Utilization
Name of hEMM 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11
42.0 M3 495 HD Shovels 3 3 119 113 98 114
15.0 M3 RH 120 E(HS) Excavators 2 2 114 110 110 107
240 Te CAT 793D Dumpers 22 22 82 121 88 102
850 HP D475A-5 Dozer 7 - 133 - 142 -
850 HP CAT D11T Dozer 1 - 137 - 138 -

Percentage availability and utilization of 240 Te dumpers during the year 2011-12 is less due to non-availability of 40.00 x 57 size tyres. Due to less availability of 240Te dumpers, utilization of 42.0 M3shovels was also low during the year 2011-12.

10.2 Coal handling Plants:

The capacity and utilization of Major and Mini Coal Handling Plants during the year 2011-12, are given below:

(Qty. in Million Tonnes)

2011-12 2010-11
ChP Nos. Annual Capacity Coal handled Capacity Utilization (%) Nos. Annual Capacity Coal handled Capacity Utilization (%)
Major CHPs 18 53.98 76.84 142.3 18 53.98 77.067 148.28
Mini CHPs 23 6.07 5.385 88.7 23 06.07 06.412 110.38


11.1 Project formulation/Capital projects/Schemes:

A. Approval of Projects/Major Schemes during the year under review:

(i) Approved by SECL Board/CIL Board:

Date and Sanctioning Authority
Sl. no. Name of the Project Capacity (Mty.) Capital Outlay ( Rs. Crores.) SECL Board CiL Board
Expansion Projects :
1. Durgapur OC 6.00 723.09 09.01.2012

B. Dropped/Closed/Frozen during the year: NIL

11.2 Project Monitoring and Status of implementation:

In SECL, 113 major coal projects (80 Underground projects and 33 Opencast Projects) have been approved for a total ultimate capacity of 149.02 Mty at a capital investment of Rs. 10743.274 Crores.

Out of 113 projects, 35 projects (15 UG & 20 OC) are On-going Projects, 53 projects (41 UG & 12 OC) have been completed as on 31st March, 2012, 11 underground mines are existing mines.

The following under mentioned 14 projects were dropped/shelved on account of poor IRR/adverse geo-mining condition etc.:

1. Kesla UG 8. Bagdeva OC
2. Tanki/Amritdhara UG 9. Kapildhara UG Augmentation
3. Shakti UG (sanctioned in Mar.'85) 10. Churcha West PSLW(sanctioned in Mar. '85)
4. Budbud UG 11. Karkati UG
5. Kartali UG 12. Chucha West PSLW(Sanctioned in Dec '94)
6. Saraipali UG 13. Bhaskarpara UG
7. Mand Incline 14. Amba UG

The following table exhibit investment-wise/technology-wise details of on-going projects and completed and existing mines under implementation as on 31st March 2012:

Implementation Status of Projects

On-going Projects

Category Total No. of Projects Capacity (Mty.) Sanctioned Capital ( Rs. Crs.) Completed Mine Existing Mine On Schedule Delayed
A. On Investment basis :
i) Rs. 100 Crs.& above 12 103.85 8051.249 - - 12 -
ii) Rs. 50 Crs. & above but less than Rs. 100 Crs. 12 11.38 932.505 7 - 3 3
iii) Rs. 20 Crs & above but less than Rs. 50 Crs. 37 23.795 1379.891 20 - 8 8
iv) Less than Rs. 20 Crs. 38 9.995 379.629 26 11 1
TOTAL 99 149.02 10743.274 53 11 24 11
B. On Technology basis :
i) Opencast 32 124.86 8311.905 12 - 18 2
ii) UG Project 67 24.16 2431.369 41 11 11 4
TOTAL 99 149.02 10743.274 53 11 29 6


i. Pinoura UG Augmentation:

Based on global tender for MPT (Mass Production Technology), the work was awarded to M/s. Shakti Kumar Sancheti but they had finally backed out. Re-tendering was done in 2005 but could not be finalized. Tender for hiring of Continuous Miner floated on 06.02.2009, LOI has been issued on 21.12.2009 and contract agreement signed on 08.05.2010.

ii. Vindhya UG Augmentation:

Presently, the mine is being worked out by Bord & Pillar method with deployment of SDLs /LHDs. Contract with M/s. DBT Limited could not be finalized. Re-tendering was done in 2005 but could not be finalized. Tender for hiring of Continuous Miner floated on 06.02.2009. LOI has been issued on 21.12.2009 and contract agreement signed on 08.05.2010.

iii. Nawapara Underground:

Due to adverse geological conditions, the progress of Incline was slow and the incline could not be connected as per schedule. Now incline drivage has been completed and coal production has been started. Project is expected to be completed by March, 2013.

iv. Mahan Opencast RPR:

Initially project has been delayed due to acquisition of tenancy land. R&R issue is yet to be resolved and Coal production is going on.

v. Amera Opencast:

Project Delayed due to delay in acquisition and finalization of tender for O.B. Removal and Coal production started from March, 2011.

vi. Rani Atari Underground:

Project delayed due to delay in construction of residential colony and EMP clearance. Land for construction of residential colony is yet to be obtained.

vii. Amadand OC:

Project has been delayed due to R&R issue. Villagers are demanding employment beyond norms. Matter is sub-judice. Coal production has started from January, 2010. The mine has produced 0.631 MT during 2011-12.

viii. Khairaha UG:

Project delayed due to delay in getting consent to operate from State Government & Land acquisition. Coal production started from March, 2012.

ix. Mahan II OC:

Project delayed due to delay in construction of coal transportation road. Work order issued for construction of approach road. Mine has produced 1.00 MT during 2011-12.

x. Haldibari UG:

Project delayed due to construction of approach road & CHP. The mine has started coal production & produced 0.0859 MT.

xi. Vijay West UG:

Project delayed due to delay in land acquisition, construction of CHP, coal transportation road & getting consent to operate from Environment Pollution control Board CG. Consent to operate is yet to be obtained. Coal production is expecting from 1st Quarter of 2012-13.


During the year under report, 83656.50 Mtr. of drilling for exploration was undertaken. As a result, 1.6 Billion tonnes (Tentative) of coal reserves has been proved.


The Research & Development activities in Coal Sector are undertaken through Science & Technology(S&T) activities administered through an Apex Scientific Body known as Standing Scientific Research Committee (SSRC). This high level committee is entrusted with the vital task of planning, programming, budgeting and overseeing the implementation of the S&T programmes in Coal Sector.

CMPDIL acts as a nodal agency and co-ordinates S&T activities in Coal/Lignite Sectors. In addition to the above, R&D Board of Coal India Ltd., is also approving certain R&D projects/schemes for the Coal Sector. SECL has also a R&D Cell of its own, which is undertaking small R&D schemes.


Two R&D projects, namely (1) Optimizing the panel dimensions in Board & Pillar development and depillaring and (2) Improving the overall percentage of extraction of UG coal mining are under implementation.


14.1 Introduction of Surface Miner:

Surface Miners have been deployed on hiring basis for coal production at Gevra OC Expansion, Dipka OC Expansion, Kusmunda OC Expansion and Chhal OC projects.

14.2 Introduction of Continuous Miner:

The efforts of the Company to modernize its underground mining operations resulted in successful introduction of a Continuous Miner in NCPH mine and a low capacity Continuous Minerat Rani Atari UG mine of Chirimiri Area. Recently Continuous Miner has been introduced at Kurja-Sheetaldhara mine of Hasdeo Area and and Pinoura UG mine of Johilla Area.

The Company has taken steps for introduction of Continuous Miner at other underground mines namely Churcha RO UG mine of Baikunthpur Area, Pinoura and Vindhya UG mines of Johilla Area. LOI for introduction of CM package in these mines has already been issued.

14.3 Introduction of Highwall Mining Technology: This method is a remotely operated system to extract coal from thin seams or coal from underlying coal seams in the Highwall of an OC mine which has reached the final Highwall position due to uneconomic stripping ratio or due to surface constraints which limits further mining operation. Highwall Technology has been successfully commissioned in February 2011 at Sharda Mine of Sohagpur Area of SECL, for the first time in Coal India Ltd. The Coal production from Highwall Mining has started.


The Company believes that good safety performance is an integral part of efficient & profitable business management and is fully committed to total safety in all aspects of its operations. The Company attaches prime importance to Safety of the employees which will not be compromised for any other considerations.


During the year under review, the following steps were taken to improve the safety standards in the mines of SECL.

1. In SECL, due care is taken for safety of the men and machines working in the mines. All possible measures are adopted in advance for the safety in mines. To prevent recurrence of accidents all the recommendations of findings of the accident enquiries are being implemented after deliberation in the Safety Committee meeting (Statutory body). All workers are being trained as per need to make them aware with the changing new technologies and method of workings with due consideration to the Safety norms.

2. All the provisions of the Mines Act & Rules, Coal Mines Regulations etc. and the Circulars issued there under in this regard are being complied with to ensure occupational safety for the employees/workers at their workplaces.

3. To enhance & ensure safety standards for the workers employed in mines of SECL, there exist different types of Safety Forums such as, Workmen Inspectors and Pit Safety Committee (with workers active participation) at Unit level, Safety Committee/Board at Area level, Bipartite and Tripartite Safety Committee at Area and Corporate level.

4. All the recommendations/suggestions made by the Standing Committee on Safety in coal mines, National Safety Conference, Court of Inquiries, Safety Boards, Tripartite, Bipartite & Pit Safety Committees are implemented.

5. In addition to the Mine & Area Management, rigorous inspection of the mines of SECL are also being done in multi-level by DGMS Officers, Senior Management officials, ISO officials, Union Representatives & Pit Safety Committee to check safety status. Suggestions given by them for increasing safety awareness amongst the employees/workers as well as to improve the safety status of mines are implemented immediately.

6. Code of Safe Practices are framed for critical operations and implemented.

7. To enhance and maintain the safety awareness among workers Safety Fortnights and special safety drives are observed in mines of SECL. Awareness and Safety talks in each shift are being practiced on regular basis to develop a safety culture in accordance of "Code of Safe Practices".

8. The protective appliances against the danger of fire, dust, noise, air pollution and visibility have been introduced in addition to normal protective Safety appliances being supplied to the workers. This will further help in preventive control of Safety hazards.

9. All the accidents were enquired into by the ISO & DGMS officials and based on their findings and with the approval of competent authority the disciplinary action was taken against the persons found responsible for the accident. Also based on the findings of enquiry report, ISO circulars were issued for taking immediate corrective measures.

10. Thrust on reduction of deployment in areas of high risk with regard to danger of roof and side falls through mechanization by introducing (i) Short-wall Mining to work under protective roof, (ii) Continuous Miner & High Wall Mining to reduce exposure of persons to risk areas.

11. Roof bolting with resin capsules has been introduced in all watery mines.

12. Risk Assessment for all the mines of SECL has been done either externally or internally (by individual unit management). All the risk prone areas identified and accordingly Safety Management Plan has been prepared for time framed implementation.

13. The rescue stations/rooms have been fully equipped with round-the-clock emergency services available within 35 KMs of all mines under the SECL command area (except Rani Atari mine of Chirimiri Area).

14. The major area of risk is assessed for each mine and preventive actions are also provided to educate workers. DO's and

DON'Ts with posters publicity and propaganda is adapted. All the accidents affected persons were called before the Pit Safety Committee Meeting and the cause of accident as well as the mistake / defect in the system is analyzed to avoid occurrence of such accidents. Training and refresher training is provided to all the workmen. All the resources are made available at the worksite with its know-how to avert accidents in future.


1. To enhance and maintain the Safety Awareness amongst workers, Safety Fortnights and Special Safety drives are observed in the mines of SECL. Awareness and Safety talks in each shift are being practiced on regular basis to develop a Safety culture in accordance of "Code of Safe Practices".

2. The initial training is imparted to all new entrants and refresher training to all employees as per statute. Thrust on training and retraining of Supervisors, Support Personnel, Roof Bolters, HEMM operators and Contractor's workers were maintained as a strategy to reduce accidents due to roof/side falls in underground mines, accidents in opencast mines and at surface of mines. The achievement on providing training to the various personnel, during the year 2011-12, is as under:

(No of Workers Trained)

Category of persons 2011-12 2010-11
Special Training: Support personnel 444 554
HEMM Operators 250 234
Supervisory staff 1842 1270
Contractor's workers 3573 3827
Refresher training: 10345 9795

15.3 Accidents Statistics:

The accidents statistics for the year under review are tabulated as under:

2011-12 2010-11
Fatal Accidents 12 17
Fatalities 12 30
Serious Accidents 50 47
Serious Injuries 52 58
Fatality rate per MT output 0.105 0.266
Fatality rate per 3 lakh Manshift 0.205 0.512
Serious injury rate per MT output 0.456 0.514
Serious injury rate per 3 lakh Manshift 0.886 0.990

Figs. for the year 2010-11 & 2011-12 are subject to reconciliation by DGMS.


The Company has strength of 604 active rescue trained personnel (Field Volunteers) against the statutory requirement of 584. Regular refresher trainings in rescue & recovery work are imparted to executives, supervisory staff & workers at the Mines Rescue Station (MRS), Manendragarh of Hasdeo Area and five other Rescue Rooms (RR) of different Areas.

The Company is also maintaining five Rescue Rooms with Refresher Training facilities (RRRT), one each at Johilla, Sohagpur, Bisrampur, Baikunthpur and Kusmunda Areas, to impart refresher training. In addition, five Rescue Rooms one each at Chirimiri, Bhatgaon, Jamuna-Kotma, Raigarh and Rajgamar (Korba) are also in operation. The Rescue Station/ Rescue Rooms are situated within 35 Kms. of every underground mine as per statute to facilitate rescue & recovery work as early as possible, except Rani Atari Sub-Area mines of Chirimiri Area.

There exist specially designed & constructed training galleries at MRS and RRRTs to provide for initial and refresher training in simulated environment of fire, spontaneous heating and explosion in underground mines. Pit practices are also done to make the rescue trained persons acquainted with changing underground workings.

Rescue Apparatus like Self Contained Breathing Apparatus, BG-174, BG-4, Reviving apparatus and Short Duration Breathing apparatus are maintained in the Company as per statute.

List of some main rescue apparatus and their strength are given below:

Sl.No. Description Existing Strength (Nos.)
1 BG-174 (Self Contained Breathing Apparatus) 248
2 BG-4 (Self Contained Breathing Apparatus) 30
3 Short Duration Breathing Apparatus (SDBA) 11
4 Reviving Apparatus 54
5 Life Oxygen Pack 11
6 Oxygen Type Self Rescuer 9896
7 Concrete Cutter 12
8 Fall Arrestor 01
9 Gas Chromatograph 01

The services of the Mines Rescue Station, Manendragarh and other Rescue Units of SECL were utilized not only for mining related activities but also for the rescue activities involving the general public and properties. Rescue services of SECL performs other than rescue jobs such as Ventilation Pressure Quantity Survey, Inspection of mines and Training of mine personnel in fire fighting, First Aid, Gas testing, SCSR & Mine Air Analysis by Gas Chromatograph on regular basis.


Clean environment for sustainable development is the prime concern of SECL and it is achieved by every employee's contribution and responsibility towards environmental performance. To achieve this objective, various participative initiatives are practiced and promoted. A three tier system for environmental monitoring and audit is followed in compliance with the environmental protection statutes, from planning to production and mine closure.

The Company's track record in implementing the Environmental Management Plans (EMPs) have been consistently excellent. All the projects are being planned with environmental measures as an integrated sub-system of Mine Management like closed conveyor transport and loading for its coal through silos at its mega mines like Gevra & Dipka, massive multi-species plantation for biodiversity conservation, top soiled management, rain water harvesting, introduction of new mining technologies like high wall mining, surface miner, etc, and voluntarily aligning its mining activities as per the requirements of international environment management system ISO 14001. Accordingly, a comprehensive EMP for each project is being prepared to safeguard the environment and ecology in the mining areas.

Considering the importance of clean air for all its stakeholders SECL has undertaken several measures to mitigate the aspect of dust in its mining areas. More than 64 mobile water sprinklers have been deployed for dust suppression. About 38 KMs of the fixed water sprinklers are functioning in and around coal handling plants, coal stock yards and transportation roads for dust suppression.

Further in order to minimize pollution and to ensure clean environment, the Company has planted 3,86,050 saplings during the year 2011-12 and the total number of saplings planted as on date exceeds 2,60,00,000.

During the year under report, EMPs for 3 new / expansion projects have been approved by Ministry of Environment & Forests, Government of India. Also, Terms of Reference (TOR) for 1 expansion project has been accorded by the Ministry of Environment & Forests, Government of India.

During the year, MoEF granted Stage-II (Final) Forestry Clearance for 4 projects / proposals and Stage-I (In-principle) Forestry Clearance for 2 projects / proposals, as detailed below:

Stage - II Forestry Clearance:

1. Chirimiri Colliery : 989.400 Ha.

2. Manikpur OC : 194.278 Ha.

3. Rajendra-Nawagaon : 113.110 Ha.

4. Jhiria UG (New Rajnagar UG) : 9.158 Ha.

Stage - I Forestry Clearance:

1. Rajgamar UG : 419.340 Ha.

2. Jhiria UG : 6.310 Ha.

The Company has also taken steps to provide clean environment in and around the city of Bilaspur and for this purpose, road side plantation for a distance of 70 KMs has been undertaken.

To conserve the scarce resource of water, SECL has undertaken water conservation and rain water harvesting in its mines and colonies.

To reduce the biological contamination of streams, SECL has commissioned six numbers of Domestic Effluent Treatment Plants (DETP) having a capacity of 8.63 MLD and covering a population of 48,900.


In order to facilitate data communication facility between Company Headquarter and all Areas, Broad net VPN Connectivity of 512 Kbps bandwidth has been provided at respective locations.

CUG mobile SIM cards with connection of BSNL have been provided to all the executives in SECL, HQ and areas. This has improved voice communication/SMS facility between HQ and all the areas.

The "SMS based Sales & Dispatch Reporting System", has been started for Gevra, Dipka & Kusmunda Areas for sending the weighment data from Weighbridges through SMS/GPRS to main server where it is utilized for making an online Sales Reporting System.

A Centralized Mail Messaging System is under operation since February 2009 with control at CIL Headquarters, Kolkata. Various wireless modes of communication like VHF sets, Hand Held Walkie-Talkie sets and Radio Trunking Systems are in use in Areas of SECL for voice communication in the mines.

RF-ID Technology Based Boom barrier vehicle access control system have been installed in Gevra and Dipka open-cast projects to provide an effective check platform for entry/exit of a number of transport vehicles in and out of OCP.


The status of various IT/System related activities as well as projects being implemented in SECL till 31.03.2012 are briefed as under:

Fully Implemented:

• The Store module of Online Materials Management System (OMMS) has been implemented at Central Stores, Korba through CoalNet and running successfully for the last three years.

• e-Tendering is being facilitated through the official Web-site of the Company. Also process of up gradation of SECL web-site is underway ,which will further incorporate more information and details as per the guideline of CVC.

• Road Sales - Spot e-auction, forward Auction, Fuel-Supply Agreements (except Power) has entirely been computerized under Coal-Net S&M module. Offers, Money-Receipt, DO Generation, Credit-Note Generation, different MIS on Road-sales are generated through Coal-Net. A comprehensive Data-base is maintained for each and every business activity related to Road sales for meeting various enquiries from external statutory agencies.

Under Implementation:

• GPS based OITDS (Operator Independent Truck Dispatch System) for improving the HEMM Management as well as to improve the utilization of departmental dumpers/shovels etc is under trial run stage at Gevra, Dipka and Kusmunda Areas. However for want of operating-license from WPC, Government of India, voice segment in the system could not be started yet and only data segment is operational.

• E-Registration of contractors for the works of Coal and Sand Loading & Transporting, OB removal and Wagon loading and supply of Goods and Materials etc. had been entrusted to M/s. ITI Limited. Online registration of contractors is under process.

^ "SMS/GPRS based Sales & Dispatch Reporting System" on trial basis is being implemented by M/S BSNL at Gevra, Dipka and Kusmunda Areas.

• Financial-Module, PIS Module under Coal-Net is running partially. All the transactions related to payment of various bills to outside agencies are made through Financial Accounting System module of Coal-Net. However after implementation of Payroll-System in the Coal-Net, final Accounts preparations job under Coal-Net shall be complete.

• Production module is running for last five years under Coal-Net ERP wherein Annual Action-Plan-Data, Actual Production Data, OB Removal data are being regularly fed and preserved for the last five years. Apart from this, MOC & other grievance cell etc. are also running.


Your Company takes pride in its highly motivated and competent human resource that has contributed its best to bring the Company to its present elevated position. The Company has always believed that human resource is its most important asset and continues to work for its development and realization of its potential. To achieve growth and to foster motivational climate, several initiatives were undertaken in the HR area during the year. The thrust on optimal utilization of manpower with focus on improvement in productivity continued. The productivity of the employees is reflected in the consistent achievement of target of the Output per Manshift (OMS) over the years.

The manpower of the Company as on 31st March, 2012 stood at 76078 with the breakup, category-wise, as indicated below:

Sl. No. Category

Manpower as on

31.03.2012 31.03.2011
1 Executives 3308 3321
2 Supervisory Staff 7692 8002
3 Highly Skilled & Skilled 36979 37721
4 Semi-Skilled & Unskilled 22022 22451
5 Piece Rated 3176 2370
6 Ministerial Staff 2226 3338
7 Trainees 675 806
TOTAL 76078 78009


The policies and directives of the Central Government on recruitment and promotional schemes of Scheduled Castes/Scheduled Tribes and Other Backward Classes (OBC) are being strictly implemented by the Company. The manpower strength of SC/ST/OBC as on 31st March, 2012 vis-a-vis 31st March, 2011 is tabulated below:


Manpower Strength (in Nos.)

% age to the Total Manpower

31.03.2012 31.03.2011 31.03.2012 31.03.2011
SC 15710 16102 20.65% 20.64%
ST 17285 17735 22.72% 22.73%
OBC 14014 14365 18.42% 18.41%
OTHERS 29069 29807 38.21% 38.22%
TOTAL 76078 78009 100% 100%

Status of sanction of employment of Project Affected Persons, Compassionate Employment & Fresh recruitment during the year 2011-12:-

Particulars 2011-12
Project Affected Persons 165
Compassionate Employment DEATH IN HARNESS 434
Fresh Recruitment ACCOUNTANT 51
TOTAL 790 (Male 704 + female 86)

I. Employments to Project Affected Persons (PAPs) were sanctioned to enhance the capacity of the existing mines and opening of new mines.

II. Employment to 4 nos. PAPs were sanctioned under Disabilities Act.

III. A new scheme has also been introduced to prepare Project Affected Persons as trainees for statutory mining post. During the year 2011-12, 9 PAPs were selected for undertaking training. This has resulted into improvement in cordial relations with adjoining villagers.


Your Company, as part of its endeavor of being a learning organization, has a policy of continuously investing in training and development of its employees. In consonance with the Corporate Vision of being a 'Leading Energy Supplier', your Company facilitates the development of all-round competence of its people.

During the year under report, the various training programs were conducted at the Management Development Institute (MDI) Bilaspur, Central Excavation Training Institute (CETI) Gevra, Basic Engineering Training Institute (BETI) Korba & Regional Training Institute (RTI) Bisrampur and also at Vocational Training Centers situated in different Areas of SECL.


HRD Department has successfully achieved the target as per MoU. The Target as per the MoU was to impart training to 470 Executives (i.e. 17.34% of total executives in SECL) while the department imparted training to 1278 executives (i.e. 47.12% of total executives in SECL).

The details of training programs conducted for executives are as under:

Executives trained

S. No. Training Programmes Target No. of Progs. MDi Outside % Achivement
1 Certified Training in Project Management 5 - - 10 200%
2 Certified Training In Contract Management 5 - - 12 240%
3 Training of Medical Professionals in Occupational Health & Safety 5 - 25 3 560%
4 Conducting Workshop for awareness on Sustainable Development 2 2 62 11 100%


Various career development programmes were conducted by HRD Department viz.

• Coaching Classes for Overmanship Examination.

• Coaching Classes for Mining Sirdar Examination.

• Coaching Classes for 2nd Class Examination.

• Coaching Classes for Non-Executive of all discipline for appearing in examination for promotion from Non-Executive to Executive Cadre.


Special training programme for up-gradation of Knowledge & Skill and Technical Update for Executives/ Supervisors and Workers have been organized by HRD Department, viz.

• Training Programmes to improve knowledge and skill of Workmen, Supervisors (Mining, Electrical and Mechanical)

• Technical Update for Mining, E&M and Excavation personnel

• Women Empowerment and Development

• Management Development Programmes including Safety Management

• Computer Training programmes in English and Hindi

• Special Training for Medical/Para Medical Staff

• Special Training for SC/ST/OBC

• Special Workshop on Vigilance Awareness

• Training Programmes for Contractors' workers

21.4 Awareness Amongst Workers:

In each area, programmes were conducted on Occupational Health, Prevention of Heart Disease and HIV/ AIDS to bring awareness amongst the Workers. These programmes were successful with huge participation of workers.

21.5 In addition to above, Initial, Refresher & Special programmes for support personnel, Supervisors & Contractors were also conducted in Areas.


Women employees constitute 5.18% of SECL's workforce. During the year 2011-12, programmes for women empowerment and development were organized. Your Company actively supported and nominated its female employees for programmes organized by Women in Public Sector (WIPS).

Training has resulted all-round development of women employees of our Company. Women have started taking active part in the different activities in the mines and workshop as well. They are also taking active part in social activities for upliftment of women residing nearby, as a result, WIPS has been recognized at the 22nd National Meet of the Forum of Women in Public Sector held on 11-12th February, 2012 at MM Ahmedabad under the aegis of Standing Conference of Public Enterprises (SCOPE), wherein delegates from SECL participated and WIPS, SECL had bagged the following awards in the said meet:

• 2nd Prize in the category of "BEST ENTERPRISE AWARD"

• 1st Prize in WIPS activities in Western Chapter

• "Best Newsletter Award" won by the Western Chapter headed by the Senior Manager (Civil) of SECL HQ. Mrs. Kirti Tiwari [Sr. Manager, (Civil) HQ] who is the president of WIPS Western Chapter has been elected as General Secretary Apex (at National level) and has taken over charge w.e.f. 01.04.2012.


SECL has laid down clear Industrial Relation Policy providing for mechanism to discuss the various issues under bilateral forums for which a 'Code of Conduct' has been signed between the management of SECL and Unions affiliated to 5 Central Trade Unions i.e. INTUC, HMS, BMS, AITUC & CITU. Under the aforesaid 'Code of Conduct' the following bipartite forums are functioning in SECL:

1. Steering Committee at Company Level.

2. Welfare Board at Company Level.

3. Safety Board at Company Level.

4. Joint Consultative Committee at Area Level & Sub-Area Level.

5. Welfare Committee at Area Level & Sub-Area Level.

6. Safety Committee at Area Level & Sub-Area Level.

The periodicity of the bipartite discussion/meetings with the unions under IR system is as under:

Sub Area Level Monthly
Area Level Bi-monthly
Company Level Quarterly

The various grievances/demands are discussed in I.R. meetings under I.R. system to avoid any industrial unrest. The daily feedback of Industrial relation and Law and Order situation is being taken from the Areas.

With the introduction of above measures, harmonious Industrial Relations were maintained which has resulted in cost reduction, increase in production, productivity, improvement in quality of work, industrial peace and overall improvement in the quality of life. Moreover, SECL has also produced 113.837 MT Coal in the year under report, which is the highest Coal production amongst the Subsidiaries of Coal India Limited.

The information pertaining to strike, mandays loss, production loss in the reporting year, is as under:

SI.No. Item 2011-12 2010-11
1 Number of strikes 2* 2
2 Number of Law and order incidents Nil Nil
3 Mandays lost (in lakh) 0.55 0.44
4 Coal production loss (in lakh tonnes) 1.00 0.48

* The Industrial Relation Scenario in SECL for the year 2011-12 recorded 2 strikes on 10.10.2011 and 28.02.2012, the details of which are as under:

1) Strike on 10.10.2011 was called by affiliates of 5 Central Trade Unions i.e. INTUC, HMS, BMS, AITUC & CITU over the issue of payment of Rs. 25,000/- PLR/Ex-gratia to employees of Coal Industry.

2) Strike on 28.02.2012 was called by INTUC, HMS, BMS, AITUC & CITU Unions. The cause of strike was pertaining to the policy decision of Government of India.

The above mentioned production loss, however, was made good through motivation of employees by way of well established Industrial Relation System / Participative Culture in the company.


24.1 Amenities provided:

Apart from the statutory welfare facilities, the Company provides housing, medical and other facilities for its employees and schooling facilities for the employees' children at all the Areas and Coalfields. The relevant information, is indicated below:

1 Housing:
a. Number of houses available as on 31.03.2012 - 60,679
b. Percentage of satisfaction as on 31.03.2012 - 79.60%
c. Additional construction during the year 2011-12 - 388
2 Water Supply:
a. Water supply to the population covered as on 31.03.2012 - 3,41,490
b. Additional population covered during the year 2011-12 - 1,940
3 Education:
a. Schools and Colleges - 259
b. Library - 24
c. School Bus - 134

Meritorious wards of employees are given scholarship under Coal India Scholarship Scheme from class 5th onwards. Financial assistance is being given to the wards of employees pursuing professional courses viz. Engineering, Medicine etc. Cash reward is also given to the wards of employees those securing 90% and above in class 10th and 12th, in their Annual Academic result.

Students benefitted Amount Distributed
(Nos.) ( Rs. in Lakhs)
Coal India Scholarship 4,384 46.54
Financial Assistance 82 20.61
Cash Reward 146 07.58

24.2 Health and family welfare programme:

SECL accords a very high priority on providing adequate and modern medical services to its entire people. Well equipped health centers have been established for catering to preventive and curative health.

The Company's responsibility as a corporate citizen does extend to the National Health Programme by educating and motivating the employees and general public to adopt Small Family norms. The relevant information of health related facilities in SECL, are as under:

Sr.No. Particulars Nos.
a. Hospitals : 17
b. Dispensaries : 47
c. Hospital beds : 952
d. Ambulances : 151

Further, in order to provide tertiary level medical treatment to the employees, a 200 bedded Multi Speciality Hospital constructed by the Company at Bilaspur had successfully been commissioned in October 2001 with the assistance of M/s. Apollo Hospitals Corpn. Ltd. and License Agreement has been executed with Apollo Hospitals Corporation Limited granting a right to maintain and operate the Hospital efficiently.

In consideration of the lease, not only the employees of the Company but also the employees of the Coal India Ltd. and its Subsidiaries referred to this Hospital, are getting treatment at concessional rates.

In its endeavor to achieve the desired result, the company organizes Family Planning Camps, in and around its Coalfields/Areas, besides organizing periodical Eye camps and General health/medical camps.

Various Community development camps were organized during the year 2011-12, wherein 30,683 persons in total were benefitted in 1222 camps, the details of which are hereunder:

Name of the Camp No. of Camps held No. of Beneficiaries
Eye Camp 4 658
School Camp 36 4764
CSR Dispensary 1058 17858
Immunization Camp 61 1841
Diagnostic Camp 1 649
Malaria Camp 29 2034
Cancer Camp 13 414
AIDS day 1 75
Anti tobacco day 1 50
Breast feeding week 4 862
Healthy baby show 9 702
Nutrition week 1 275
Gastroscopic Camp 1 53
Women's Day 1 200
Orthopaedic Camp 2 248

The Below Poverty Line (BPL) families are provided free OPD facilities in our hospitals and dispensaries. Mobile Ambulances with ECG & Pathological facilities visit daily in the peripheral villages and providing free treatment to the needy families on the spot. In 2,907 village camps, around 1,57,519 beneficiaries got the medical treatment. 36 School health camps were also organized where 4764 beneficiaries were examined.


For all-round growth and high morale, sports and cultural competition were conducted for the employees, their wards and family members.

Further, 15 Gyms, 19 Stadiums and 57 Playgrounds are available for sports activities. Dronacharya Indoor Stadium first of its kind in Chhattisgarh is located in Gevra where the wards of the employees, PAPs are imparted training by coach in Lawn Tennis, Badminton, Carom, Table Tennis etc.

The wards trained in this Indoor Stadium are representing the Chhattisgarh State at the National Level.

Besides, 78 Clubs/Institutions, 42 Children Parks and 28 Community Halls provide facilities for recreational and cultural activities.

During 2011-12, 03 events were conducted by CIL i.e. CIL Inter Company Chess, Badminton & Table tennis. SECL stood Winner in the Chess tournament and Runner up in the Badminton tournament.


Your Company has always appreciated its social responsibility as a part of Corporate Governance philosophy. During the year 2011-12, Rs. 5635 lakhs were allocated under CSR as against Rs. 5400.45 lakhs during the year 2010-11.

CSR allocations are used for economic, environmental and social upliftment of communities in and around the Coal mines in the major thrust areas such as Community Development, Infrastructure, Drinking Water/ Sanitation, Literacy enhancement/Women empowerment, Educational aids and Health care/Medical.

25.1 Corporate Social Responsibility Policy:

A policy on Corporate Social Responsibility has been formulated by Coal India Limited (CIL), the Holding Company, for implementation in CIL and its Subsidiaries. The objective of the CSR policy is to make CSR a key business process for substantial development for the society. The CSR policy takes into account, the following measures:

a) Welfare measures for the community at large including employees and their families.

b) Proper rehabilitation of Project Affected Persons (PAPs) based on Rehabilitation & Resettlement (R&R) policy separately formulated and expenditure on R&R activities would be included in the Project Cost.

c) Contribution to the society at large by way of social and cultural development, imparting education, training and social awareness especially with regard to the backward class and generation of employment opportunities.

d) Protection and safeguard of environment and maintaining ecological balance.

25.2 Sources of Fund and areas to be covered under CSR:

The fund for the CSR is allocated based on 5% of the retained earnings of previous year subject to minimum of Rs. 5/- per tonne of coal production of previous year. Out of the above, 4% is allocated for CSR activities to be carried out in the vicinity of Coalfield and balance 1% is allocated for carrying out CSR activities by Subsidiary Companies in the State to which the Subsidiary Company belongs.

The responsibility of the Subsidiaries shall be to execute CSR within a radius of 15 KMs for every project and Areas including Headquarters. Further, Board of Directors of Subsidiary Companies can approve specific cases of projects beyond mining areas within the respective State.

25.3 Scope of activities covered under CSR:

i) Education

ii) Water supply including drinking water

iii) Health care

iv) Environment

v) Social Empowerment

vi) Infrastructure for Village Electricity/Solar Light / Pawan Chakki, recurring expenditure to be borne by the beneficiaries, which may be partially financed by Company.

vii) Sports & Culture

viii) Generation of employment opportunities & setting up Co-operative Societies

ix) Infrastructural Support

x) Grant / donation / financial assistance/sponsorship to reputed NGOs in upliftment of the standard of the society

xi) Miscellaneous

25.4 Activities undertaken under CSR:

Major focus areas of CSR activities were identified and major CSR projects launched during the year are as under:

• Gramodaya: SECL has taken new initiative to set up Rural Technology Parks under the title 'GRAMODAYA' for social empowerment of the families around the coalfields. SECL would be establishing 8 CSR Parks in the 8 operating Districts of Chhattisgarh and Madhya Pradesh.

Baseline study was carried out for one such park was carried out at Village Nipania, Bilaspur, C.G. and the construction of the Technology Park is on the verge of completion.

• ganiyari Hospital: A new 'Pharmacy Bhavan' has been constructed at Public Healthcare Centre and Hospital at Village Ganiyari, Bilaspur, C.G. This would facilitate to the community health programme run by the hospital. The said program is assisted by 104 trained health workers selected from 53 different tribal villages. This hospital has strength of 35 beds with operation theatre facility in place. A team of Doctors from this centre often visit nearby villages to impart at the door medical check-up and treatment to the locals.

• Trauma Care Center: For quick and prompt treatment of accident victims as well as any causalities due to calamity, a state of the art Trauma Care Centre is going to be established at Korba, a first of its kind in the State.

• Solar Lanterns: SECL has committed itself for an all round development of villages under its CSR. Continuing the lead, a Solar Lantern distribution program was organized by SECL. A total of 1050 Solar Lanterns has been distributed to residents of various villages thorough different Areas of SECL.

• Drinking Water: SECL has spent around Rs. 275.98 lakhs for arrangements of clean water supply in the nearby villages by installing/repairing hand-pumps, tubewells, digging/cleaning/deepening of ponds, wells etc.

• School Infrastructure: Education has been a prime focus of the CSR activities of SECL. The Company has spent around Rs. 173.72 lakhs for upliftment of educational standard of the villages around mining areas by construction/up-gradation of school infrastructure, financial assistance, adoption of tribal students, etc.

Flood Relief - Raigarh: SECL has assisted District Collector, Raigarh for various flood relief activities for the affected people of Raigarh District by extending financial support of Rs. 26 lakhs.

Dattak Putri Yojna: Financial assistance to 1083 poor girl students / needy girl students for primary education through the District Collectors of Chhattisgarh has been provided.

Udaan Yojna: Adoption of primitive tribal girl child under "UDAAN YOJNA" of Chhattisgarh Government.

• The work of strengthening and re-construction of the damaged ring road of Korba for an amount of Rs. 18 crores has been taken up by SECL.

• SECL has taken up work of providing and fixing of street lights all along the ring road at Ambikapur, Chhattisgarh for a length of 11 kms.

• Financial assistance for water management development works at Achanakmar Tiger Reserve, Bialspur, C.G. for forest animal has been approved by SECL.

The Company has spent Rs. 1,766.78 lakhs during the year 2011-12 towards CSR activities, out of the allocated fund of Rs. 5,635 lakhs. Thus, the unspent fund of Rs. 3,868.22 lakhs, which is being carried forward to the next financial year, will be utilized by undertaking new projects as well as against ongoing activities under CSR.


During the year under report, the company made special drive for promotion of Hindi in official work in Headquarters and units. In this direction, Hindi workshops were organized on quarterly basis at Management Development Institute (MDI) HQ Bilaspur. The scheme of teaching here was especially focused towards usages of Hindi in day-to-day official correspondence as well as usage of simple and correct language in writing.

Company level Hindi Computer training programs were conducted at MDI to promote the IT friendly usages of Rajbhasha. All the computers have also been installed with MS-Unicode program/Hindi software to carry out office work in hindi, more effectively.

The 'Rajbhasha Pakhwada' (September 14-28) of the year gone by witnessed enthusiastic participation of employees across all the cadres. In this, noting and drafting competition for executives, Essay and elocution competition, picture based hindi story writing, Rajbhasha slogan and many other competitions were organized to spread awareness in the use of simple hindi. In some competitions, the entries for employees were given in two segments i.e., of Hindi and non-hindi background. The winners in all the competitions were suitably rewarded.

Hindi Implementation committee meetings in the presence of Hindi observer from ministry of Coal were held quarterly to monitor and review the progress of the Hindi implementation programs at the area / Headquarters level.

A book titled "Koyla Ratna" is published by Rajbhasha Vibhag, SECL HQ in each quarter. It has broadened its popularity by publishing colorful articles in the form of short stories, write up, and essay etc. ranging in taste from literature to health, meditation & many others. Apart from providing a literary arena to all the sections of Coal society, this magazine also provides the details of all ongoing Hindi Implementation programs and publishes details of useful policies concerning employees in general.


The Vigilance Department of the company, during the year 2011-12, made all possible efforts to check and control corruption in the areas of various activities of the Company. Vigilance activities are being carried out in line with the guidelines of CVC, covering the aspects of surveillance & detection, preventive vigilance and punitive measures. The functioning of Vigilance Department is in a fair and transparent manner, more specifically in improving the systems and to update all concerned with the extant rules/guidelines of the Company. The main functions of the department are as follows:

• Investigation of the complaints received directly, routed through CVC, Ministry, CBI, Coal India etc. and taking necessary action as deemed fit as per merit of the case.

• Periodic/regular and surprise inspections of sensitive spots.

• Review and streamlining of procedures/guidelines where there is scope for corruption or misconduct.

• Extending help to CBI.

• Review of Annual Property Returns submitted by the Officers of the Company.

• Conducting enquiry proceedings against the charged officers and taking disciplinary actions against them.

• Arranging Customer Awareness Programmes to settle the disputes and to solve the problems of stake holders.

• Arranging in-house training programmes for the executives working in the company to educate those, regarding rules and procedures of the Company

27.1 Preventive Vigilance:

a) Organization of Vigilance Training Programmes:

Vigilance Training Programmes are being conducted by Vigilance department regularly at different areas and at Management Development Institute, SECL, Bilaspur. Senior executives of different disciplines, like Mining, E&M, Finance, Materials Management, Sales etc., from Areas as well as SECL Hqrs are attending these programmes. During the year under report, various Vigilance Awareness Programmes were conducted in the company, the details of which are given below:

• A one day workshop on Vigilance Awareness was organized by SECL, Vigilance Department on 18.05.2011 at Baikunthpur Area, wherein 151 senior level officers from Chirimiri, Bisrampur, Bhatgaon, J&K and Baikunthpur Areas participated actively. S/Shri R.K. Choubey, SP, CBI(retd.), P.C. Mishra, Chief Manager(Systems), IICM, Ranchi and P.K. Sinha, CVO, BCCL/SECL addressed the gathering regarding conducting departmental proceedings, common irregularities in tendering and procurement with specific reference to Coal Sector and complaint handling and facets of vigilance respectively.

• A Vigilance Awareness Workshop was organized at MDI, Indira Vihar, SECL, Bilaspur from 24.08.2011 to 26.08.2011 wherein 180 officials from Hqrs and all the Areas of SECL actively participated. Senior faculty members viz. S/Shri Jogendra Nayak, AIG(P)/OSD, CBI, New Delhi, V.N. Verma, Supdt of Police, EOW, CBI, New Delhi, S. Gagarin, IRTS, SECR, Bilaspur, Kishalay Bhattacharya, Dy. GM(Academics), IICM, Ranchi, V. Pathak, Chief Manager(MM), SECL, Bilaspur and S.K. Mitra, PIO, SECL, Bilaspur expressed their views and enlightened the participants in different subjects like Role of CBI and PSU Vigilance in combating corruption, Common mistakes in conducting Disciplinary proceedings, Motivation and Stress Management, Importance of honesty, CDA Rules of the CIL, Contract and procurement management with special reference to CVC Guidelines and RTI Act respectively.

• A two days Vigilance Workshop was organized at Management Development Institute, Indira Vihar, SECL, Bilaspur on 16th and 17th Feb. 2012. Senior faculty members, S/Shri R.K. Choubey,

Retd. SP, CBI Academy Ghaziabad and R. K. L. Reddy, Sr. Manager(MM/Vig), SECL, Bilaspur

expressed their views in different subjects viz. PC Act, Sanction order, suspension, disciplinary proceedings, Court cases and other vigilance matters. About 114 participants from Hqrs and different Areas of SECL actively participated in the workshop and cleared their doubts.

b) Organization of Vigilance Awareness Week 2011:

Under the guidance of CVC, New Delhi, Vigilance Awareness Week-2011 was observed from 31.10.2011 to 05.11.2011. The week began with Pledge at 11 AM on 31st October 2011 in all Areas and headquarters. Inaugural function was held at SECL Hqrs, Bilaspur in which Shri S.K. Ghosh, Ex-DGP, West Bengal was the Chief Guest. The Functional Directors, officers and staff were present.

Interactive Vigilance Workshops with consumers/service providers were organized in three Areas viz. Dipka, Bhatgaon and Sohagpur Areas. In these workshops, the area officials and the contractors, service providers and consumers from all the Areas of SECL participated actively. The grievances put forwarded by the service providers were noted for redressal thereof, wherever necessary. A Workshop on Vigilance Awareness was organized at Management Development Institute, Indira Vihar, Bilaspur on 4th November, 2011, which was inaugurated by CMD, SECL. Shri R.K. Choubey, retired SP, CBI Academy, Ghaziabad was the guest faculty of the function. Also, an interactive session with Customers/Service providers was organized at the same venue in which Functional Directors of the company were present to redress the grievances.

On 5th November 2011, a closing ceremony was organized in MDI, Bilaspur in which Shri S.S. Gagarin, Chief Commercial Manager, SEC Railways, Bilaspur was the Chief Guest of the function. During the closing ceremony, the winners of various competitions that were organized during the Vigilance Awareness Week were given prizes and certificates by the Chief Guest.

c) System improvements undertaken:

Vigilance department has taken up some cases relating to procurement and transportation contracts for Intensive examination. During the year 2011-12, on the basis of periodic inspections, many circulars and guidelines were issued for system improvement. Some of the systemic improvement measures on the basis of case studies and surprise inspections & customer's meet conducted are listed below:

• Repealing of contradictory clauses adversely affecting performance of Security Services Contracts

• Vacation of un-authorized occupation of Company quarters

• Development of sources of spares for machinery from ancillary units as decided by the Management

• Strengthening and streamlining and back-up thereof, of records at weighbridges

• Redesigning of truck traffic in road sale of coal in the Mine premises, to ease out congestion

• Strengthening of security measures to avert presence of un-authorised persons in the Mine premises

• Finalization of tenders within the stipulated validity period

• Automatic and user-friendly system for effecting refund of Earnest Money deposits & Security Deposits

27.2 Investigative Vigilance:

a. Preliminary Investigation:

121 complaints received during the year along with 70 complaints carried forward from the previous years were taken up for preliminary verification. Verification has been completed in 113 complaints. After preliminary verification and subsequent investigation, disciplinary action has been initiated wherever necessary. 11 (Eleven) vigilance cases were registered during the year and taken up for investigation besides 15 vigilance cases carried forward from the previous years. In respect of 13 vigilance cases, investigation has been completed.

b. Oral Inquiries/Departmental Proceedings:

16 Regular Departmental cases (major penalty- 14 cases and minor penalty- 2 cases) were registered during the year under reference in addition to the 13 RDA cases (major penalty - 11 cases and minor penalty - 2 cases) carried forward from the previous years. During 2011-12, 08 cases (major penalty -5 cases and minor penalty - 3 cases) have been disposed off. At present 21 cases (major penalty -20 cases and minor penalty - 1 case) are under finalization as on 31.03.2012.

27.3 Steps taken to activate the Vigilance Machinery:

The vigilance department is headed by Chief Vigilance Officer with one General Manager(Vigilance) and other experienced Officers from various specialized disciplines like Mining, Materials Management, Excavation, Civil, Survey and Personnel. The activities of Vigilance department are mainly focused on preventive and participative vigilance and on enhancement of vigilance awareness among all stake holders. The efforts of Vigilance department, aim to maintain:

• Fair & transparent systems, management processes and corruption free governance.

• Initiation of prevention measures to control the menace of corruption and other malpractices in the Company

• Instilling principles of honesty and integrity in the work culture of the Company.

• Speedy & time bound disposal of the complaints.


The aim of the Security Department is to protect the properties of the Company and provide collective security to management, staff and employees with a view to accelerate production through industrial peace.

Proactive measures taken by the department has fruitfully ensured no illegal mining of coal in lease hold areas of SECL and minimized theft/pilferage of coal and Company's property. This enormous task has been possible due to immense dedication and sincerity of 870 departmental, 320 CISF and 2825 Ex-servicemen/Civilian security personnel deployed in SECL.

To demonstrate the high morale, motivation level and alertness, security personnel participated in the magnificent parade on the auspicious occasion of national festivals, Republic Day and Independence Day.

28.1 Celebration of Chhattisgarh and Coal India/SECL Foundation day:


Your Company is one of the few institutions who have signed the Memorandum of Understanding with the Transparency International India. The body is the Indian Chapter of Berlin based ''Transparency International'', a not-for-profit and non-governmental organization committed to curbing corruption in any form.

Arising out of the MOU signed with the Transparency International India, the Integrity Pact has been implemented for tenders having estimated value of Rs. 2.00 crore and above for purchase contracts and Rs. 1.00 crore and above in respect of other contracts. Two Independent External Monitors (IEMs) have also been appointed to monitor the tenders covered under the Integrity Pact.


During the year 2011-12, SECL included underground mines also for Environmental Management System (EMS) certification. Three underground mines using latest mining technology - Continuous Miner and Shortwall were included in the EMS Certification programme for the year. During the year, six numbers of mines were recommended for ISO 14001:2004 Certification. Certification will be issued by Certification International (UK) Limited, UK. These mines are, as under:

1. Laxman OCP 4. Singhali UG
2. Dharam UG 5. Bagdeva UG
3. Dhelwadih UG 6. Rehar UG

Already three mega projects of SECL - Gevra OCP, Dipka OCP & Kusmunda OCP along with fifteen other opencast mines, as detailed below, have been certified for Environmental Management System (EMS) as per ISO 14001:2004 up to 2010-11.

1. Kanchan 9. Manikpur
2. Dhanpuri 10. Sharda OC Highwall
3. Rajnagar 11. Amadand OC
4. Chirimiri 12. Kurja-Sheetaldhara-Kapildhara
5. Amera 13. Rani Atari UG
6. Dugga 14. Churcha RO UG
7. Chhal 15. Mahan-II OC
8. Baroud

The following Central Hospitals of the Company had been credited with ISO: 9001:2008 Certification in the field of Management of Diagnostic, Curative, and Rehabilitative & Preventive Health Care Services.

1. Burhar Central Hospital, Sohagpur in the year 2007-08, valid up to 02.11.2012.

2. Nehru Centenary Hospital, Gevra in year 2006-07, valid up to 02.11.2012.

3. Central Hospital, Manendragarh, in the year 2010-11 valid up to 02.11.2012.

4. Indira Vihar Health Centre, Bilaspur in the year 2010-11 valid up to 02.11.2012.

The following Workshops of the Company had been credited with ISO:9001:2008 and ISO:9001:2000 Certification respectively for implementation of Quality Management System in the activities of overall and repair of mining machinery and manufacture of related parts :

1. Central Excavation Workshop, Gevra Project, accredited in 2005-06 and renewed during 2011-12 with validity up to 18th August, 2014.

2. Central Electrical & Mechanical Workshop, Korba accredited in 2003-04 and renewed with validity up to September, 2013.

3. Regional Workshop, Bijuri, Hasdeo Area, accredited in 2005-06, and renewed during 2011-12 with validity up to 18th August, 2014.

4. Regional Workshop, Korea, Chirimiri Area accredited in 2005-06 and renewed during 2011-12 with validity up to 18th August, 2014.


"Shri Asok Kumar Sinha", holding the additional charge of CMD, SECL and Director (Finance) of Coal India Limited, the Maharatna Coal Mining monolith was conferred with the coveted "Best CFO" Award in PSU Category in the award function organised by 'Business Today' and 'Yes Bank' on 11th April, 2012 at New Delhi, for handling the IPO of Coal India Limited in October, 2010, which was the most successful Public issue in the history of India and for his untiring endeavours in elevating the CIL as the most valued company in the country in terms of market capitalisation on 17th August, 2011.The Award was presented to Shri Asok Kumar Sinha by Shri Pranab Mukherjee, Hon'ble Finance Minister, Government of India, and Dr.Veerappa Moily, Hon'ble Minister for Corporate Affairs, Government of India. The Board congratulated him on his meritorious achievement.


There are 15 Audit Firms of Chartered /Cost Accountants registered with the ICAI & ICWAI who have conducted Internal Audit in SECL for the year 2011-12 in 13 Areas of SECL in addition to audit of Company Headquarter, Central Store & Central Workshop, Korba, Central E&M Workshop, Gevra, SECL Kolkata office and Dankuni Coal Complex.

There are also 23 audit firms of Chartered/Cost Accountants appointed for the year 2011-12 for conducting physical verification of stores and spares in all the areas of SECL.

The suitable and corrective actions wherever necessary based on the observations of the Internal Auditors were taken. The Audit Committee of SECL reviewed the Audit Report relating to internal control and other observations of the audit.

The Internal Audit Department co-ordinates the transaction audit as well as thematic audit such as crushing of coal 100 mm/50 mm and augmentation coal production conducted by Commercial Audit Team of C&AG, reply of audit paras and its final settlement from time to time.

Further, the Company would be approaching the Comptroller & Auditor General of India for appointing Statutory and Branch Auditors for the financial year 2012-13 and the remuneration payable to them shall be fixed by the Board of Directors in terms of the authorization accorded by the Shareholders at their 15th Annual General Meeting held on 31st August 2001.


The Statutory Auditors' Report on the Accounts of the Company for the year ended 31st March, 2012 along with the Management's replies are placed in the Annexure forming part of the Report.

The comments on the accounts for the year ended 31st March, 2012 by the Comptroller & Auditor General of India under Section 619(4) of the Companies Act, 1956 are also enclosed as Annexure-V.


It has been mandated in the DPE guidelines that the non-financial parameters of MoU 2011-12 are to be clearly identifiable & clearly verifiable and an agency shall be entrusted to carry out the verification process. Non-Financial parameters encompass the parameters listed under Quality, HRD, Project Implementation, R&D, CSR Activities, Environmental Measures and Safety etc.

Accordingly, the Statutory Auditors appointed by C&AG for the year 2011-12 was engaged for such verification of the parameters. The Report as submitted by the Statutory Auditors on the performance of parameters of MoU for the year 2011-12 is enclosed as Annexure-IV.

33.2 Annual Accounts of South Eastern Coalfields Limited and the related detailed information shall be available to the shareholders of the holding company and SECL. Any shareholder seeking such information at any point of time, can inspect the same in the registered office of SECL at Bilaspur, Chhattisgarh.


The information in accordance with the provisions of Section 217(1) (e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 regarding Conservation of Energy, Technology absorption and Foreign Exchange earnings and Outgo is given in Annexure-I to this Report.


Information as per Section 217(2A) of the Companies Act, 1956, read with Companies (Particulars of Employees) Rules, 1975, as amended, is not given as no employee was drawing more than Rs. 5,00,000/-per month.


36.1 The following persons, continued to be the Directors during the year under report:

1. Shri A.K. Sinha - Chairman-cum-Managing Director*
2. Dr. M.P. Dikshit - Chairman-cum-Managing Director**
3. Shri A.R. Komawar - Director (Finance)
4. Shri P.K. Roy Choudhury - Director (Technical) (Operations)
5. Shri Anil Kumar Singh - Director (Personnel)
6. Shri A.K. Bhalla - Director
7. Shri H.S. Chahar - Director
8. Shri Amitav Kothari - Director
9. Dr. Amalendu Sinha - Director
10. Dr. R.N. Trivedi - Director

*Shri A. K. Sinha is holding additional charge as CMD w.e.f. 01.09.2011

**Under suspension.

36.2 The following persons, appointed as Director during the year under report:

1. Shri A. K. Sinha - CMD (w.e.f. 01.09.2011)
2. Shri Anil Kumar Singh - Director (Personnel) (w.e.f. 23.11.2011)
3. Dr. R. N. Trivedi - Director (w.e.f. 07.10.2011)

36.3 The following persons, ceased to be Director during the year under report:

1. Shri A. K. Singh - CMD (ceased w.e.f. 31.08.2011)
2. Shri R.S. Singh - Director (Pers.) (ceased w.e.f. 31.07.2011)
3. Shri Gopal Singh - Director (T) (P&P) (ceased w.e.f 29.02.2012)
4. Prof. S. K. Barua - Director (ceased w.e.f. 01.11.2011)


Seven (7) Board Meetings were held during the year 2011-12.


The constitution of the Audit Committee of Board of Directors in your Company dates back to the year 2002 and the committee is committed to good Corporate Governance with best discharge of its assigned duties. The Audit Committee was re-constituted on 26th September, 2007 with the induction of Independent Directors on the Board.

The present Audit Committee was reconstituted w.e.f. 25.03.2011 as per the nominations conveyed by the Government of India, Ministry of Coal in terms of the provisions of Companies Act, 1956 and the mandatory Corporate Governance Guidelines for CPSEs, with the following members & Invitees as under and continued throughout the year:

1 Chairman Shri H.S. Chahar, Former IAS Officer Independent Director
2 Member Shri Amitav Kothari, Practicing CA. Independent Director
3 Member Shri A.K. Bhalla Joint Secretary (Coal) Part Time Government Director of the Ministry of Coal, Govt. of India
4 Permanent Invitee Shri P.K. Roy Choudhury Director (Technical) Operations
5 Permanent Invitee Shri A.R. Komawar Director (Finance)

The Terms of Reference of the Audit Committee are in accordance with Section 292A of the Companies Act, 1956 and the Guidelines dated 14th May, 2010 on Corporate Governance of CPSEs issued by Department of Public Enterprises. The list of functions inter-alia includes the following:

• To hold discussion with Auditors periodically about:

- Internal control systems compliance and adequacy thereof.

- Scope of audit including observations of the Auditors.

- Review of the quarterly, half yearly and annual financial statements before submission to the Board.

• To perform the following functions:

- Overseeing the Company's financial reporting process and system for disclosure of its financial information to ensure that the financial statements are correct, sufficient and credible.

- Reviewing, with the management, the annual financial statements before submission to the Board for approval, with particular reference to matters required to be included in the Directors Responsibility Statement, changes, if any in accounting policies, major accounting entries, significant adjustments made, disclosure of related party transactions and qualifications in the Draft Audit Report.

- Recommending the appointment and removal of external auditors, fixation of audit fee and also approval for payment for any other services.

- Carrying out any other function as mentioned in the terms of reference of the Audit Committee. The Company Secretary is the Secretary to the Audit Committee.

The Committee had seven (7) meetings during the year.


A Report on Corporate Governance is attached as Annexure-II to this report.


A Report on the "Management Discussion and Analysis" on the operations and performance for the year, is attached to this report as Annexure-III.


Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956, with respect to Directors' Responsibility Statement, it is hereby confirmed:

i) That in the preparation of the accounts for the financial year ended 31st March, 2012 the applicable accounting standards have been followed along with proper explanation relating to material departures;

ii) That the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that were reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for the year under review.

iii) That the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

iv) That the Directors have prepared the Accounts for the financial year ended 31st March, 2012 on a 'Going Concern' basis.


Your Directors acknowledge with deep sense of appreciation the co-operation received from the Govt. of India in particular the Ministry of Coal, Coal India Limited, State Governments, Regulatory and Statutory Authorities from time to time.

Your Directors also acknowledge the constructive suggestions received from Statutory Auditors and Comptroller & Auditor General of India, and are grateful for their continued support and co-operation.

Your Directors would like to place on record its appreciation for the untiring efforts and contributions made by the employees at all levels that have made the continued achievement of an excellent performance possible.


The following papers are annexed:

43.1 In pursuance to the provisions of Section 217(1)(e) of the Companies Act, 1956, read with Companies (Disclosure of particulars in the Report of Board of Directors) Rules, 1988, information in regard to the Conservation of Energy, Technology Absorption and Foreign Exchange Earning Outgo is given in (Annexure-I) to this report.

43.2 A Report on Corporate Governance (Annexure-II).

43.3 A Report on Management Discussion and Analysis (Annexure-III).

43.4 A Report on performance of Non-financial parameters of MoU (Annexure-IV).

43.5 Comments of the Comptroller & Auditor General (C&AG) of India under section 619 (4) of the Companies Act, 1956 (Annexure-V).

For and on behalf of the Board of Directors

sd/- sd/-
Place : Bilaspur (P. K. Roy Chodhury) (Asok Kumar Sinha)
Dated : 23.05.2012 Director (Technical) Operations Chairman-cum-Managing Director


Information under Section 217(1)(e)

Information as per Section 217(1)(e) of the Companies Act, 1956, read with Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988, and forming part of the Directors' Report for the year ended 31st March 2012 :


Conservation of energy:

a) Energy conservation measures taken:

1. Regular monitoring of power factor of all the connection points & installation of capacitor banks (particularly at Jamuna-Kotma, Korba, Gevra, Dipka, Kusmunda & Raigarh Areas) for increasing power factor and thereby reducing Power Bill.

2. Installation of energy savings lamps/ equipments at Jamuna-Kotma, Korba, Gevra, Kusmunda & Dipka Areas.

3. Reorganization of power supply system by passing power cable through bore holes at Jamuna Underground Mine, Meera Incline of J&K Area, Churcha East of Baikunthpur Area and all Underground Mines of Hasdeo Area.

4. Reorganization of pumping system by providing proper size pipe at J&K, Korba, Baikunthpur & Hasdeo Area.

5. To avoid stage pumping, bore holes for laying delivery pipe lines have been made at Korba Area.

6. Proper ventilation stopping provided in different underground mines, such as Hasdeo and Baikunthpur Areas.

7. Reorganization of load pattern and installation of demand controllers at various points of supply at J&K, Korba, Bhatgaon & Baikunthpur Areas to control maximum demand.

8. Strata bunkers have been constructed in Bartarai underground mines of J&K and Hasdeo Areas.

b) Additional investment and proposals, if any, being implemented for reduction of consumption of energy:

a) In underground mines, bulk head fitting with incandescent lamp will be replaced with CFL fittings. In colony street lights, wherever feasible, sodium vapour lamps and mercury vapour lamps will be replaced by CFL lamps.

b) To reduce stage pumping and to reduce pipe length to reduce loss of energy at Korba Area and Dharam Mines of Raigarh Area, boreholes are made.

c) Proposal for construction of strata bunker at Amadand of J&K Area is under process.

c) Impact of the measures taken to reduce Energy Consumption:

a) By ensuring power factor above 0.95 at various points of supply, a bonus of Rs. 5.52 crores has been earned against Rs. 2.54 crores in previous year.

b) Specific Energy Consumption in 2011-12 is 9.06 KWH/Te against the target of 9.12 KWH/ Te.


Form of disclosure of particulars with respect to Conservation of energy: a. Power & Fuel Consumption:

Particulars 2011-12 2010-11
1. Electricity:
Purchased unit (Lakhs KWH) 10312.04 9979.99
Total amount In Crore) 577.56 532.30
Rate/ Unit ( Rs. / KWH) 5.60 5.34
2. Diesel:
Quantity(K.Ltr.) 65966.98 62995.51
Total Cost( Rs. in Crore) 296.22 259.58
Average Rate per Ltr. ( Rs. /Ltr.) 44.90 41.21

Consumption per unit of Production:

Particulars 2011-12 2010-11
1. Electricity:
i) Specific consumption per tonne of coal production (KWH/Te) 9.06 8.85
ii) Specific consumption per Cu. M. of composite production of Coal and overburden (KWH/M3) 5.43 4.68
2. Diesel:
i) Specific consumption per tonne of coal production (Ltrs./Te) 0.58 0.56
ii) Specific consumption per Cu. M. of composite production of Coal and overburden (Ltr./M3) 0.41 0.34


FORM - 'B'

Form for disclosure of particulars with respect to Research & Development and Technology Absorption


1. Specific areas in which Research and Development (R&D) is being carried out by the Company.

i) Two R&D projects namely "Optimizing the panel dimensions in Board & Pillar development and depillaring" and "Improving the overall percentage of extraction in UG coal mining" are under implementation.

ii) Expenditure on Research & Development

in Lakh)
(a) Capital : 3.78
(b) Recurring : 0.00
(c) Total : 3.78
(d) Total R & D expenditure as a
percentage of total turnover : 0.0002%


(a) Efforts in brief, made towards technology absorption are as under:

i. Shortwall Mining Technology: This technology has been introduced successfully at Balrampur UG mine for extraction of coal from developed pillars.

ii. Continuous Miner (CM): To modernize the Underground mining operation, Continuous Miner Technology is in operation at NCPH mine of Chirimiri area and recently introduced in Kurja-sheetaldhara mine of Hasdeo and Pinora mine of Johilla area.

iii. Low Capacity Continuous Miner (LCCM): LCCM has been introduced at Rani Atari UG mine in Chirimiri Area on hiring basis during the year 2008-09 for a production of 0.18 Mty.

iv. Highwall Mining Technology: Contract agreement for Highwall mining at Sharda OC mine of Sohagpur area has been signed on 05-03-2010 and coal production has started. This method is a remotely operated system to extract Coal seams with thickness ranging from 0.9m to 1.5 m or Coal from underlying Coal seams in the Highwall of an opencast mine which has reached the final Highwall position due to uneconomic stripping ratio or due to surface constraints which limit further mining operations.

v. Surface Miner: Surface Miners have been deployed on hiring basis for Coal production at Gevra OC Expansion, Dipka OC Expansion , Kusmunda OC Expansion & Chhal OC project.

(b) Benefits derived as a result of the above efforts and with the implementation of these technologies, production and productivity will improve and Coal Seams which were earlier unworkable can be mined economically and safely.

(c) In case of improved technology (imported during the last 5 years reckoned from the beginning of the financial year) the requisite information is given below:

a) Technology imported : Nil
b) Year of Import : Nil
c) Has technology been fully absorbed : Nil
d) If not fully absorbed, areas where this has not taken place, reasons therefore and future plan and actions : Nil


1. Activities relating to export, initiatives to increase exports; development of new export markets for products & services and export plans. Company is not engaged in exports.
2. Total Foreign exchange used & earned.
a. Total Foreign Exchange earned NIL
b. Total Foreign exchange used Rs. 28.67 Crores
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