CIL

COAL INDIA Ltd.

Presented By:
Udbhav Agarwal, Arunima Gupta, Raghav Garg

Overview of COAL INDIA

Critical Railway links- Collaboration with State
Govt. and railways
Single largest coal producing Co. globally.
494.24 MT ~ 82% of Indias total coal
production.

Operates through 81 mining areas (430 mines)

CIL is an apex body with 7 wholly owned coal
producing subsidiaries and 1 mine planning and
consultancy
Feeds
82 out of company
86 coal based thermal power plants in
India. Accounts for 76% of total thermal power generating
capacity of the Utility sector
And Supplies coal at prices discounted to international
prices

 To emerge as a global player in the primary energy sector

To emerge as a global player in the primary energy sector
committed to provide energy security to the country
committed to provide energy security to the country
by attaining environmentally & socially sustainable growth
by attaining environmentally & socially sustainable growth
through best practices from mine to market
through best practices from mine to market

To produce and market the planned quantity of coal and coal

products efficiently and economically in an eco-friendly manner
with due regard to safety, conservation and quality.

Corporate
Corporate
Structure
Structure

PHYSICAL
PHYSICALPERFORMANCE
PERFORMANCE
Coal Reserves & Resources of
CIL
As of April 1, 2010, from our total coal
resources of 64,786 million tons,
30,356 million tons had been considered
for mining studies (mine planning and
feasibility studies), and
the remaining coal resources of 34,430
million tons had not yet been considered
for such mining studies.
From the 30,356 million tons of coal
resources that had been considered for
mining studies as of April 1, 2010, 21,754
million tons has been estimated as our
Extractable Reserves.

 Coal Production
(A) Produce non-coking coal and coking coal of various grades for diverse applications. The
following table provides certain information relating to the non-coking coal and coking coal
produced by us in the periods indicated:
Coal Production
Grade
Fiscal
2012
2013
2014
2015
2016 (APR-DEC)
s
Raw
% of
Raw
% of
Raw
% of
Raw
% of
Raw
% of
coal
Raw
coal
Raw
coal
Raw
coal
Raw
coal
Raw
product coal product coal product coal product coal product coal
ion product ion product ion product ion product ion product
Mill Te
ion
Mill Te
ion
Mill Te
ion
Mill Te
ion
Mill Te
ion
Non 392.48
90.1
408.56
90.3
413.50
89.4
443.67
89.8 336.97 90.2
Cokin
g
Coal
1
Cokin 43.36
9.9
43.66
9.7
48.92
10.6
50.57
10.2
36.54
9.8
g

Includes NEC(Assam grade) coal.

2Includes semi-coking coal and weakly coking coal
A significant majority of our non-coking coal is produced by us from mines operated in the
Korba, Singrauli, Talcher, IB Valley and Wardha Valley coalfields, Most of our coking
(metalurgical) coal is produced at the Jharia coalfield.
(B) COMPANYWISE DETAILS 2015-16(APR-DEC)
Company-wise Manpower for the month of MARCH-2016 (01.04.2016)
Categor ECL BCCL CCL WCL SECL MCL NCL NEC CMPDI DCC
y
L
Executiv 2375 2324 2590 2599 3323 1861 1786 107
913
35
e
Supv. 4439 4045 3377 5315 7744 3295 1697 311
603
213
Workme 59424 4730 37714 41148 53438 17241 12555 1459 2106 169
n
1
TOTAL 66238 5367 43681 49062 64505 22397 16038 1877 3622 417
0

CIL(H TOTA
Q)
L CIL
391 18304
51 31090
415 27297
0
857 32236
4

FINANCIAL
FINANCIALPERFORMANCE
PERFORMANCE
Sales Improved by
9.75%
EPS declined by
91.16%
Debtors declined by

 Budgeted amount of
550 crores, an
amount of `522.70
crores was utilized,
representing a
33.76% increase over
expenditure

OBJECTIVES
OBJECTIVES

Steps
StepsUndertaken
UndertakenBy
ByCIL
CILTo
ToImprove
Improve
Planning newPerformance
underground mines adopting
Performance
mass production systems like continuous

miner technology and longwall technology

wherever feasible.
Undertaking thorough geo-mining investigations
before the formulation of the projects
Entering into risk / gain sharing
arrangements with the equipment suppliers
for guaranteed levels of production and
maintenance of equipment
Training of manpower

Benefits of Maharatna in
India?
In 2009, the government established the Maharatna status, which
raises a companys investment ceiling from Rs. 1,000 crore to Rs.
5,000 crore. The Maharatna firms would now be free to decide on
investments up to 15 per cent of their net worth in a project.
Earlier, the Navaratna companies could invest up to Rs 1,000crore
without government approvals.
Criteria for Maharatna
In order to qualify as a Maharatna, a company must have:
Three years with an annual net profit of overRs.2500crore
Net worth of Rs. 10,000 crore
Turnover of Rs. 20,000 crore

PENDING ISSUES OF COAL INDIA LIMITED.

CIL submitted that only five cases are pending for finalization of rationalized
sources because of cost plus price issues of WCL and average e-auction
price of SCCL.

GSECL submitted that interchange of quantity from one company to other

should be done on notified price only and saving of cost in landed price is
not viable if coal is supplied on cost plus price from WCL. Mutual
discussions between GSECL/WCL/CIL have been done to finalize the supply
on the basis of rationalized sources

NTPC submitted that rationalized allocation for Simhadri and Ramagundam

are needed to be seen together as viability of ECL high grade coal for
Simhadri is partially met by SCCL supply at notified price for Ramagundam
STPS. SCCL prices are already higher than CIL prices and e-auction prices
may further effect landed cost so much that they may not get schedule for
generation due to higher tariffs.

Corporate Governance Guidelines

adopted

MARKETING
ANALYSIS

Nurturing Nature, Empowering India, Enabling Life

STP Analysis

STRENGHTS

SWOT
SWOTANALYSIS
ANALYSIS

1. CIL owns the world's largest recoverable

coal reserves at more than 22bnt.
2. Tie ups with shipping Corporation of India
enables CIL to tap into the expertise of an
experienced shipper while avoiding the
vagaries of the spot market.
3. Strategic overseas venture secures its
future position and energy requirements.
Strong employee base with over 350,000
people in the organization.
4. Strong backing by the Govt. of India
5. The CIL is also recognized as a Maharatna
Company in India

WEAKNESS

1. Coal mining in India is associated with poor

employee productivity.
2. The output per minute per annum in India
varies from 150 to 2,650 tonnes compared
to an average of around 12000 tonnes in
the U.S and Australia.
3. Inefficient production from the company's
coal blocks is causing supply problems in
India's power sector.
4. Bound to supply domestic customers even
at subsidized rates.

OPPORTUNITIES
Major role to play in Indias aspiration regarding being energy sufficient country
Relatively low cost of production and large labor pool gives the opportunity to expand
operations and efficiency
Efficiency in management and PPPs can boost company performance
Coal is cheapest source of energy and thus demand will continue to remain strong,
comparative to alternate energy sources available in India

THREATS
Most of the coal reserves are under forest and tribal inhabited areas, increasingly
making it difficult to excavate.
Large tract coal bearing areas in India is in disturbed areas, thus prone to operational
disruptions.
Change in policies/ regulations governing the sector e.g. private participation can
negatively impact CIL's performance.
Project delays due to environmental and land issues pose threat to companies sustained future supplies
There is still a lack of clarity in the 26% profit sharing clause included in the mining bill

FUTURE
FUTURESTRATEGIES
STRATEGIES
Critical Railway links-

Collaboration with State Govt. and Railways.

Technological Development

Geology
Opencast Mines
Underground Mines

Role of HR

Skill upgradation of existing employees

Recruiting Professionals

Long-term sustained supply of coal from sources

abroad

Equity Model, wherein it is proposed to acquire stakes in

operating mines
Off-take model, wherein it is proposed to enter into Long-te