“A STUDY ON SALES AND DISTRIBUTION OF COAL IN SOUTH EASTERN

COALFIELDS LTD (SECL)”

AT

SOUTH EASTERN COALFIELDS LTD (SECL), M.P.

Submitted in partial fulfilment of requirement for the award of degree of Master of Business

Administration of

UNIVERSITY OF KERALA

Thiruvananthapuram

2017-2019

Submitted By

ARATHI M

Reg. No. 59517810037

Under the guidance of

Dr. Vinith Kumar Nair

Professor & Associate Dean

TKM INSTITUTE OF MANAGEMENT, KOLLAM

Session 2017-2019

ACKNOWLEDGEMENT

I owe everything in my life to other. A person single headed can achieve nothing. In my

attempt to do the project many people have graciously extended their guidance, advice and

criticism to improve my work.

I wish to express my heartiest thanks to our Director Dr. Jayaram Nayar for providing

infinite facilities, and giving me an opportunity to does this project work successfully.

I express my sincere thanks to my project internal guide Dr. Vinith Kumar Nair for his

guidance and valuable suggestions, which made this project, a successful one. I express my

gratitude to SOUTH EASTERN COALFIELD LTD. (SECL), HASDEO AREA, M.P. for

providing me the opportunity to undertake this project in their esteemed organization.

My gratitude also extends to the staffs of the department whose words of encouragement kept

the spirits high throughout the course of my project.

DECLARATION

We hereby declare that this project work entitled “SALES & DISTRIBUTION OF COAL

IN SOUTH EASTERN COALFIELD LTD. (SECL), Hasdeo Area, M.P.” submitted at

TKM Institute of Management, Kollam is partial fulfilment of the requirement for the

degree of Master of Business Administration is a record of original work done by me under

the guidance of Dr. Vinith Kumar Nair. It has not been submitted to the award of any

degree/fellowship or other similar title to any candidate of university.

Place: - Kollam Signature of student

Date: - ARATHI M

(Reg.no. 59517810037)

EXECUTIVE SUMMARY

Coal India Limited (CIL) is one of the largest coal producing companies in the world with a

total production of 431.32 million metric tonnes of coal in 2010-11. CIL has eight wholly

owned subsidiaries. As of March 31, 2011, it operated 470 miles in 21 major coalfields across

eight states in India, including 164 open cast mines, 275 underground mines and 31 mixed

mines (includes both open casts and underground mines).

Coal mining raises serious environmental and social concerns, including soil erosion, dust,

noise and water pollution, and impact on local biodiversity. The environmental and social

issues associated with coal exploration and production such as displacement are of special

nature as the coal reserves are located in river basins such as Damodar, Barakar, Sone,

Wardha, Bramhani, Mahanandi, etc. which are rich in forest cover and are habitats of

precious wildlife and indigenous tribal communities. CIL and its subsidiaries being profit

making companies have sufficient resources to discharge its responsibilities towards

environment management, resettlement and rehabilitation of displaced persons, community

and peripheral development.

The performance audit of the CIL and its subsidiaries was conducted with a view to assess

whether the companies were able to fulfil their corporate social responsibilities (CSR) in an

effective and efficient manner towards environmental protection, safety requirement,

occupational health of the workers and community and peripheral development. A total of 18

open cast mines, eight underground mines and four washeries in seven coal producing

subsidiaries, selected on random sampling; were reviewed in audit.

Table of Contents

Sl. No. Title Name Page No.

Chapter I Introduction

1.1 Introduction of Study 1-2

1.2 Significance of Study 3

1.3 Scope of the Study 4

1.4 Objectives of the Study 4

1.5 Limitations of Study 5

Chapter II Literature Review

2.1 Introduction 6

2.2 Demographic Profile in Distribution Channels 6-7

2.3 Sales Promotion in Distribution Channels 7-11

2.4 Direct Sales Force in Distribution Channels 12-14

Chapter III Industry Profile

3.1 Introduction of Coal Mining Industry 15

3.2 History 15

3.3 Methods of Extraction 16

3.3.1Surface Mining 16

3.3.1.1 Strip Mining 16-17

3.3.1.2 Contour Mining 17

3.3.1.3 Mountaintop Removal Mining 17-18

3.3.2 Underground Mining 18-20

3.4 Production 21-22

3.5 Modern Mining 23

3.6 Environment Impacts 24

3.7 Coal Mining by Country 25-30

Chapter IV Company Profile

About Coal India Ltd. 31-33

4.1 Introduction of South Eastern Coalfields Ltd 34-36

4.2 SECL Organisation Structure 37

4.3 Board of Directors 38

4.4 Coalfields 39-41

4.5 Technology 42-45

4.6 Awards & Accolades 46-49

4.7 Certifications 50

4.8 CSR Activities of SECL 51-56

4.9 Marketing Mix 57-65

4.10 FSA Distribution 66-69

Chapter V Research Methodology

5.1 Research Design 70

5.2 Sampling 70

5.3 Analysis Tools 70-73

Chapter VI Data Analysis & Interpretation

6.1 Data Analysis 74-82

Chapter VII Findings, Suggestion & Recommendation

7.1 Findings 83-84

7.2 Suggestion & Recommendation 85

Chapter VIII Conclusion, Bibliography & Appendix

8.1 Conclusion 86

8.2 Bibliography 87-88

8.3 Appendix 89-90

List of Figures

Figure No. Title of Figure Page No.

6.1 View about SECL 74

6.2 Facing any problem with company Distribution System 75

6.3 Others companies are better than SECL 76

6.4 Delivery time of coal by SECL 77

6.5 Current position of SECL 78

6.6 Want any changes in the company service 79

6.7 Factors regarding the "product" 80

6.8 Factors regarding the "promotional activities" 81

6.9 Factors regarding the "distribution channel" 82

List of Tables

Table No. Title of Table Page No.

3.1 2009 Estimate of total Coal Production 21

4.1 Production of Coal 33

4.2 Coal Reserves in M.P. and C.G. 41

4.3 Various GCV based bands of Non-Cooking Coal 61

4.4 Run of Mine price of Non-Cooking Coal 64

4.5 Performance of different E-auction Scheme in 2017-2018 68

4.6 Share of Mode of Transport 68

6.1 View about SECL 74

6.2 Facing any problem with company Distribution System 75

6.3 Others companies are better than SECL 76

6.4 Delivery time of coal by SECL 77

6.5 Current position of SECL 78

6.6 Want any changes in the company service 79

6.7 Factors regarding the "product" 80

6.8 Factors regarding the "promotional activities" 81

6.9 Factors regarding the "distribution channel" 82

1

1.1 Introduction of Study

The study is focus on sales and distribution of coal.

Sales and Distribution

Sales and distribution are both components of marketing mix. Sales and distribution system is

specifically developed for the company, which has high volume of sales with wide

distribution network. This application keep track of all sales which happens either through

depot, channel or through any other mode, even it keep a track of all inventory of dealers or

depot and respective other details which are normally required by management for day to day

reporting.

Sales

Sales refers to the exchange of goods/ commodities against money or service. It is the only

revenue generating function in an organization. It has formed an important part in business

throughout history. Even prior to the introduction of money, people used to exchange goods

in order to fulfill the needs, which is known as the barter system.

Conditions of Sales

There are two parties involved in the transaction, the seller and the buyer.

The seller is the provider of goods or services and the buyer is the purchaser in

exchange of money.

The seller of goods has to transfer the title of ownership of the item to the buyer upon an

agreed price. A person who sells goods or services on behalf of the seller is known as the

salesman/woman.

Distribution

Distribution management refers to the process of overseeing the movement of goods from

supplier or manufacturer to point of sale. It is an overarching term that refers to numerous

activities and processes such as packaging, inventory, warehousing, supply chain, and

logistics.

Distribution management is an important part of the business cycle for distributors and

wholesalers. The profit margins of businesses depend on how quickly they can turn over their

2

goods. The more they sell, the more they earn, which means a better future for the business.

Having a successful distribution management system is also important for businesses to

remain competitive and to keep customers satisfied.

The fundamental idea of distribution management as a marketing function is that the

management of distribution happens in an ecosystem that also involves the consideration of

the following:

Product: Not always a tangible object, product can also refer to an idea, music, or

information.

Price: This refers to the value of a good or service for both the seller and the buyer,

which can involve both tangible and intangible factors, such as list price, discounts,

financing, and likely response of customers and competitors.

Promotion: This is any communication used by a seller to inform, persuade, and/or

remind buyers and potential buyers about the sellers goods, services, image, ideas,

and the impact it has to society.

Placement: This refers to the process that ensures the availability, accessibility, and

visibility of products to ultimate consumers or business users in the target channels or

customers where they prefer to buy.

Effective distribution management involves selling your product while assuring sufficient

stocks in channels while managing promotions in those channels and their varying

requirements. It also involves making sure a supply chain is efficient enough that distribution

costs are low enough to allow a product to be sold at the right price, thus supporting

your marketing strategy and maximizing profit.

3

1.2 Significance of Study

This study has enabled me to understand the company culture, policy, rules and regulation

regarding sales and distribution. In my project I study the sales and distribution policy of

SECL. SECL follow various rule and regulation to provide coal to its customers.

In SECL there are many departments such as

I. Human Resource Department

a) Manpower

b) Non-Executive Establishment

c) Apprentice

d) CIL Executive defined Contribution Pension Scheme

e) Maitreyi

II. Finance Department

a) Annual Report & Accounts under CERL (Chhattisgarh East Railway Limited)

b) Annual Report & Accounts under CEWRL(Chhattisgarh East-West Railway

Limited)

III. Production Department

IV. Marketing and Sales Department

V. Civil Department

VI. Material Management Department

VII. Electrical & Mechanical Department

VIII. Electronics & Telecommunication Department

IX. Mining Department

X. Survey Department

XI. L & R Department

XII. Hospital

XIII. Security Department

XIV. System Department

XV. Safety Department

4

1.3 Scope of the Study

The scope of the study is confirmed to the detailed study of coal and about the

organization.

The study helps us to identify the company’s position in the coal industry.

This study helps us to understand the working culture of organization.

And it also helps us to suggest means of improvements in the existing system.

1.4 Objectives of the Study

Primary

The main objective of the study is to sales and distribution of coal in SECL, Hasdeo

Area, Madhya Pradesh.

Secondary

To understand the working culture of a company.

To know the method of distribution of coal.

To know the price commended by the organization

5

1.5 Limitations of Study

The study was for short period.

The study is conducted considering the prevailing conditions which may change in the

future.

6

2.1 Introduction

It has been evidenced for years that distribution channel is important for its ability to reduce

the expenditure of economic transaction (Williamson, 1981). Its capability of effectively

supporting the competitiveness of firms, namely manufacturers, distributors, retailers, and

customers, due to the distance that separates them apart, making distribution channel a

significant function to enhance export performance (Leonidou, 1996; Zou, & Stan, 1998).

Other studies that found similar result of its essential role of distribution channel to be a

determinant factor for export improvement can be found in Shouming (1998) and Carlos et

al.,(2008), besides product, price, and promotion strategy. Many scholars have shown great

interest in studying further about distribution channel due to its crucial role in improving firm

performance. Leonidou (1989), Moore (1991), Heide (1994), and Morgan, and Hunt (1984)

indicated that the growth of export oriented firm was significantly 28 associated with the

effectiveness of the relationship and cooperation between producers and the overseas

importer. A study by Anderson et al.,(1997) also found that the effectiveness of channel

members‟ coordination and communication among manufacturers, agents, distributors, and

retailers improved channel member performance. According to the finding by Rose, and

Shoham (2004), it was demonstrated that practical conflict that happened among channel

members would not strengthen the affiliation, but on the contrary, it would reduce the

effectiveness of strategy used, which, would in turn, alleviate their performance. An

empirical study by Frazier et al.,(1989), which focused on industrialized manufacturers,

found that the need of dealer to maintain an effective channel relationship in a seller's market

was usually determined by the contribution of the manufacturers to the dealers‟ benefit.

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2.2 Demographic Profile in Distribution Channels

Similar perspectives on the marketing environment are commonly found in textbooks in

marketing channels. For instance, Stern et al.,(1989) argue that ―two goals of marketing

management are to ensure that the controllable changes are properly coordinated within the

channel to ensure that the uncontrollable or environmental changes do not adversely impact the

channel. Therefore, understanding what makes up the environment and how it affects channel

management is particularly important‖ (Stern et al.,1989, p. 27). In their model factors such as

demographics, changing consumer resources, social and culture, consumer attitudes, consumer

life styles, political, economic and technological factors are important facets of change.

Similarly, Mallen (1977, p. 174) argues that ―there are certain factors which the channel

strategist must take into consideration and through which he must operate, but over which he

has little control. These factors are outside the direct influence of his company and he must

adapt to 29 them to be successful. These factors may be referred to as the environment‖. He

mentions competition, business conditions (ie. trends), technology, international, social and

ethical and government and legal aspects as key factors.

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2.3 Sales Promotion in Distribution Channels

Kumar, and Swaminathan, Srinivasan (2005) studied the impact of coupons on brand sale and

how that impact decays over the life of the coupon. The authors use an econometric model to

demonstrate the coupon effect in terms of equivalent price reduction, account for coupon effect

over time, allow inference of coupon effects when retailers decide to double or triple the coupon

value and provide both self-coupon and cross-coupon elasticity‟s at different levels of

aggregation. Results indicate that the effect of doubling the face value of coupon result in more

than a proportionate increase in elasticity and both self and cross- coupon elasticity‟s are much

smaller in magnitude than the average self-cross price elasticity.

Laroche, Michel et.al., (2005)studied the effect of coupons on consumer's brand categorisation

and choice process using fast-food restaurants in China. Results suggest that there are both

direct and cross advertising effects i.e., the presence of a coupon for a focal brand has an impact

on consumer's attitudes and intentions towards that brand.

Lewis, Michel (2004) developed an approach for simultaneous measurement of the influence of

a dynamic loyalty programme and more traditional short- term promotions. They argue that the

loyalty programmes under examination successfully alter behaviour and increase retention rates.

Email based coupons, shipping fee and general price levels all significantly affect customers

purchase decisions.

Consumer promotions are now more pervasive than ever. Witness 215 billion manufacturer

coupons distributed in 1986, up 500% in the last 30 decade (Manufacturers Coupon Control

Center 1988), and manufacturer expenditures on trade incentives to feature or display brands

totalling more than $20 billion in the same year, up 800% in the last decade (Alsop 1986;

Kessler 1986). The purchasing strategies that consumers adopt in response to particular

promotions, or to study how pervasive these strategies are in a population of interest. Blattberg,

Peacock and Sen (1976) define a purchase strategy as a general buying pattern which

"incorporates several dimensions of buying behaviour such as brand loyalty, private brand

proneness and deal proneness." A greater understanding of the different types of consumer

responses to promotions can help managers to develop effective promotional programs as well

as provide new insights for consumer behaviour theorists who seek to understand the influence

of different types of environmental cues on consumer behaviour.

Blattberg, Eppen, and Liebermann (1981), Gupta (1988), Neslin, Henderson, and Quelch

9

(1985), Shoemaker (1979), Ward and Davis (1978), and Wilson, Newman,and Hastak (1979)

find evidence that promotions are associated with purchase acceleration in terms of an increase

in quantity purchased and, to a lesser extent, decreased inter purchase timing. Researchers

studying the brand choice decision-for example, Guadagni and Little (1983) and Gupta (1988)-

have found promotions to be associated with brand switching. Montgomery (1971), Schneider

and Currim (1990), and Webster (1965) found that promotion-prone households were associated

with lower levels of brand loyalty.

Blattberg, Peacock, and Sen (1976, 1978) describe 16 purchasing strategy segments based on

three purchase dimensions: brand loyalty (single brand, single brand shifting, many brands),

type of brand preferred (national, both national and private label), and price sensitivity

(purchase at regular price, purchase at deal price). There are other variables that may be used to

describe purchase strategies, examples are whether the household purchases a major or minor

(share) national brand, store brand, or generic, 31 or whether it is store-loyal or not. McAlister

(1983) and Neslin and Shoemaker (1983) use certain segments derived from those of Blattberg,

Peacock, and Sen but add a purchase acceleration variable to study the profitability of product

promotions.

Throughout the world, consumer sales promotions are an integral part of the marketing mix for

many consumer products. Marketing managers use price-oriented promotions such as coupons,

rebates, and price discounts to increase sales and market share, entice trial, and encourage brand

switching. Non-price promotions such as sweepstakes, frequent user clubs, and premiums add

excitement and value to brands and may encourage brand loyalty (e.g., Aaker 1991; Shea,

1996). In addition, consumers like promotions. They provide utilitarian benefits such as

monetary savings, added value, increased quality, and convenience, as well as hedonic benefits

such as entertainment, exploration, and self-expression (Chandon, Laurent, and Wansink, 1997).

A large body of literature has examined consumer response to sales promotions, most notably

coupons (e.g.. Sawyer and Dickson, 1984; Bawa and Shoemaker, 1987 and 1989; Gupta,

1988; Blattberg and Neslin, 1990; Kirshnan and Rao, 1995; Leone andSrinivasan, 1996).

Despite this, important gaps remain to be studied. It is generally agreed that sales promotions

are difficult to standardize because of legal, economic, and cultural differences (e.g., Foxman,

Tansuhaj, and Wong, 1988; Kashani and Quelch, 1990; Huff and Alden, 1998). Multinational

firms should therefore understand how consumer response to sales promotions differs between

countries or states or province.

10

At this point, it is useful to define what mean by the terms "expected price" and "price

promotion." Following Thaler (1985), it is viewed that the price consumer‟s use as a reference

in making purchase decisions as the price they expect to pay prior to a purchase occasion.

Further, the expected 32 price may also be called the "internal reference price" (Klein and

Oglethorpe 1987) as opposed to an external reference price such as the manufacturers'

suggested list price. Finally, a brand is on price promotion when it is offered with a temporary

price cut that is featured in newspaper advertising and/ or brought to consumers' attention with a

store display sign.

The price expectations hypothesis has been used to provide an alternative explanation for the

observed adverse long-term effect of price promotions on brand choice (Kalwani et al.,1990).

Previous research has shown that repeat purchase probabilities of a brand after a promotional

purchase are lower than the corresponding values after a non-promotional purchase (Dodson,

Tybout, and Sternthal 1978; Guadagni and Little 1983; Shoemaker and Shoaf 1977). Dodson,

Tybout, and Sternthal evoke self perception theory to predict that if a purchase is induced by an

external cause (such as a price promotion) as opposed to an internal cause (e.g., the brand will

be reduced when the external cause is removed. Alternatively, Kalwani et al.,argue that

consumers form expectations of a brand's price on the basis of, among other things, its past

prices and the frequency with which it is price promoted. Consumers' reactions toa retail price

then may depend on how the retail price compares with the price they expect to pay for the

brand.

Specifically, during a price promotion, they are apt to perceive a price "gain" and react

positively; correspondingly, when the deal is retracted, they are apt to perceive a price "loss"

and are unlikely to purchase the brand. Neslin and Shoemaker (1989) offer yet another

alternative explanation for the phenomenon of lower repeat purchase rates after promotional

purchases. They argue that the lower repeat purchase rates may be the result of statistical

aggregation rather than actual declines in the purchase probabilities of individual consumers

after a promotional purchase. Specifically, "if the promotion attracts many consumers who 33

under non promotion circumstances would have very low probabilities of buying the brand, then

on the next purchase occasion the low probabilities of these consumers bring down the average

repurchase rate among promotional purchases".

Consistent with the findings of Raman and Bass (1988) and Gurumurthy and Little (1989), they

also found evidence in support of a region of relative price insensitivity around the expected

price such that changes in price within that region produce no pronounced change in consumers'

11

perceptions. Price changes outside that region, however, are found to have a significant effect

on consumer response. Further, they discussed that promotion expectations are just as important

as price expectations in understanding consumer purchase behaviour. In particular, consumers

who have been exposed to frequent price promotions in support of a given brand may come to

form promotion expectations and typically will purchase the brand only when it is price

promoted. Added to it, in the case of price expectations, consumer response to promotion

expectations was asymmetric in that losses loom larger than gains.

Applying Helson's (1964) adaptation-level theory to price perceptions, Sawyer and Dickson

(1984) suggest that price promotions may work in the short run because consumers may use the

brand's regular price as a reference and then are induced by the lower deal price to purchase the

brand. However, frequent temporary price promotions may also lower the brand's expected

price and lead consumers to defer purchases of the brand when it is offered at the regular price.

Tversky and Kahneman (1974) have shown that people rely on a limited number of heuristic

principles that reduce complex tasks of assessing probabilities and predicting values to simpler

judgmental operations. In some cases, people may anchor and adjust their forecasts by starting

with a preconceived point and weigh that point heavily in arriving 34 at a judgment. When the

frequency of past price promotions is "very low," consumers identify a price promotion offer as

an exceptional event and may not modify the brand's expected price. The brand's expected price

then will be anchored around the regular price because of insufficient adjustment. In other

cases, people may arrive at a judgment on the basis of how similar or representative the event is

to a class of events. Therefore, when a brand is price promoted "too often," consumers come to

expect a deal with each purchase and hence expect to pay only the discounted price on the basis

of its representativeness.

However, Michael J. Barone & Tirthankar Roy (2010), explored was whether, when, and how

recipient‟s evaluations of a targeted price promotion may be affected by the offer„s exclusivity

(i.e., the extent to which an offer is available to consumers in the marketplace). If exclusion

from a targeted offer can trigger disadvantageous inequity for non-recipients (as Feinberg,

Krishna, and Zhang (2002) demonstrate), it stands to reason that receipt of an exclusive

discount should engender advantageous equity for deal recipients.

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2.4 Direct Sales Force in Distribution Channels

Bitner (1992) believes that consumers expect satisfactory service from the sales people of the

preferred textile shop. They may evaluate the service of the sales force in terms of many

attributes like demonstration of different varieties of product, clearing consumers' doubts

particularly with regard to a new brand or texture, and suggestion regarding fashion trends.'

There are so few objective criteria by which consumers can judge the quality of the services

they receive'. Based on quality of service, consumers perceive a textile shop as an ideal one.

Westbrook, Robert, (1981)61 has explained that consumers are very keen on selecting and using

clothing or garments on the ground of their 43 'communicability'. Naturally, they may prefer a

shop based on the product offered, service rendered by the sales force, and the price range of the

product. Experience from a textile shop with regard to these aspects may activate them to mould

patronage towards the shop concerned. 'Consumers' satisfaction with a retail establishment may

be viewed in terms of an individual's emotional reactions to his or her evaluation of the total set

of experience realized from patronizing that retailer'.

Brooke and Gudergan (2001) explored the role of various factors on effectiveness among sales

force, through an exploratory study in eight Australian pharmaceuticals companies and found

positive relationship between sales force autonomy and effectiveness in all the companies. The

study also concluded that market knowledge led to a greater market orientation, which in turn,

has a positive effect on sales force effectiveness. In the study the researcher developed a sales

force effectiveness model. The model designed as market knowledge and customer value

management leads for market orientation. Similarly, the sales force control and sales

infrastructure leads to sales force autonomy. According to the model, the market orientation and

sales force autonomy are the influencing factors for sales force effectiveness.

Matsuo, and Kusumi, (2002) focused their research on Sales person‟s procedural knowledge,

experience and performance in Japan. Procedural knowledge would indicate the type of selling

methods or strategies to be adopted in specific situations. Nineteen items of procedural

knowledge were used in the study which included: talking to a customer with a smile, easing the

hesitation and anxiety of the customer, sending the customer a thanking note after receiving an

order, reading the customers type, asking the customer to make referrals etc. These were

associated with the nine steps involved in sales process namely: approach, communication,

proposal, closing, receiving an order, delivering, follow-up, getting a referral and promoting a

replacement. They hypothesized that the more 44 sales experience salespeople gain, the stronger

13

the relationship between procedural knowledge and their performance. The study found that

inexperienced salespeople used procedural knowledge than experienced sales people. The study

also reveals high performing sales people to be customer oriented as well as active. Therefore,

the immediate superior should balance the above two types of selling. The results of the study

support the hypothesis. According to the author, one has to give attention to their role of

experience which has a connection with sales force knowledge and performance.

Sales force has been described as early adopters of new technologies, which include multiple

telecommunication and internet enabled devices. It is stated that researchers have not adequately

addressed technology-sales force linkages. Christ, and Anderson, (2011), examining the topic

quotes research by Rapp et al., (2008) showed that sales force adoption of technology has often

met initial resistance. They also cite evidence to suggest that latest technologies make

salespersons‟ jobs easier 45 as in Colon, (1998), decreases costs (Taylor,1993), enhances

communications, reduces sales cycle time (Thetgyt, 2000), and improves organizational access

to information (Leifer, 1999). Thus it has been already established that adopting technology

helps sales organization to develop sustainable advantages over competitors. Adoption of the

latest technology is a way to increase sales force effectiveness and efficiency in carrying out

sales force activities, enhancing customer relationships.

Dave Kurlan's (2010) study on turnover prevention, found that involuntary turnover occurs less

often because most sales managers are too patient, accept mediocrity, and avoid uncomfortable

confrontation associated with termination. A notable segment among sales managers have need

for approval and shy away from confrontation due to the need to be liked. Statistics with

Ecselling Institute showed that majority of sales managers were not inclined to upgrade

their sales force. Majority of these managers had less than 65% of the attributes of

accountability.

Rajan, and Srinivasan, (2012) delved into sales force effectiveness in pharmaceutical industry

and found that the most measurable features in sales person‟s performance were interpersonal

skills, salesmanship skills, technical skills and sales techniques. According to the study, the non-

verbal communication plays a vital role in interpersonal skills set; the skill sets as sales closing

ability and ability to work as a team in salesmanship skills and in Technical skills, the product

knowledge and reporting and procedure efficiency were found as important factors for the

effectiveness of a sales person.

Piercy, et al., (1998) required Sales managers to rank order factors to improve sales persons‟

14

effectiveness and found that encouraging sales force to build long-term relationship with

customers and improving product/service quality formed the top two factors, followed by

decreasing response time between order and delivery. The study concluded that there 46 was

close relationship between sales force behavior performance and sales force outcome

performance and thus they need not be at a tangent with each other.

Santos, and Bourne, (2005) studied the impact of performance targets on behavior in sales force

contexts and found that in order to impact performance by influencing motivation, targets need

to be based on reliable data, has to be perceived as achievable, equitable across sales territories

and must also be agreed upon by each sales person. Effectiveness of targets in inducing

performance was found to be undermined by issues such as forecast based mostly on past

performance, targets perceived to be too high or low, targets based on the wrong performance

measures, targets wholly based on financial indicators, even when customer relationships and

other such factors were absolutely critical, Targets not periodically reviewed so sales

departments were overtaken by events and when interrelation between targets was not

considered causing inconsistency.

The recent research on sales force competencies indicates the sales persons‟ competencies are

the success key to organizational competitive advantages. According to Lambrecht (2007), the

front line sales managers (FLSM) are the most critical aspect in productive sales persons to

control the performance into their sales force‟s daily workflow (Banakus, Cravens, 1996,

Piercy, Cravens et al.,(2009). A study conducted to measure the sales managers‟ performance

by the sales executives council interviewed 300 sales organizations found the competency

tension of changing sales roles and sales models.

15

3.1 Introduction to Coal Mining Industry

Coal mining is the process of extracting coal from the ground. Coal is valued for its energy

content and since the 1880s, has been widely used to generate electricity.

Steel and cement industries use coal as a fuel for extraction of iron from iron ore and for

cement production. In the United Kingdom and South Africa, a coal mine and its structures are a

colliery, a coal mine – a pit, and the above-ground structures – a pit head.

Coal mining has had many developments over the recent years, from the early days of men

tunneling, digging, and manually extracting the coal on carts to large open cut and long wall

mines. Mining at this scale requires the use of draglines, trucks, conveyors, hydraulic jacks and

shearers.

3.2 History

Small-scale mining of surface deposits dates back thousands of years. For example, in Roman

Britain, the Romans were exploiting most of the major coalfields by the late 2nd century AD.

The Industrial Revolution, which began in Britain in the 18th century and later spread to

continental Europe and North America, was based on the availability of coal to power steam

engines. International trade expanded rapidly when coal-fed steam engines were built for the

railways and steamships.

Until the late nineteenth-century coal was mined underground using a pick and shovel, and

children were often employed underground in dangerous conditions. Coal-cutting machines

were introduced in the 1880s. By 1912, surface mining was conducted with steam shovels

designed for coal mining.

Mineworkers used rodents (mostly mice) and birds (canaries) underground to track the amount

of concentrated carbon monoxide in the shafts. Small animals were more sensitive to danger.

Miners kept an eye on mice and their strange behaviour such as becoming lethargic or, on the

contrary, making their way out of the shaft at the top speed was a sign of the upcoming trouble.

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3.3 Methods of Extraction

Coal mining processes are differentiated by whether they operate on the surface or underground.

Many coals extracted from both surface and underground mines require washing in a coal

preparation plant. Technical and economic feasibility are evaluated based on the following:

regional geological conditions; overburden characteristics; coal seam continuity, thickness,

structure, quality, and depth; strength of materials above and below the seam for roof and floor

conditions; topography (especially altitude and slope); climate; land ownership as it affects the

availability of land for mining and access; surface drainage patterns; groundwater conditions;

availability of labor and materials; coal purchaser requirements in terms of tonnage, quality, and

destination; and capital investment requirements.

3.3.1 Surface Mining

When coal seams are near the surface, it may be economical to extract the coal using open cut

(also referred to as open cast, open pit, mountaintop removal or strip) mining methods.

Opencast coal mining recovers a greater proportion of the coal deposit than underground

methods, as more of the coal seams in the strata may be exploited. This equipment can include

the following: Draglines which operate by removing the overburden, power shovels, large

trucks in which transport overburden and coal, bucket wheel excavators, and conveyors. In this

mining method, explosives are first used in order to break through the surface or overburden, of

the mining area. The overburden is then removed by draglines or by shovel and truck. Once the

coal seam is exposed, it is drilled, fractured and thoroughly mined in strips. The coal is then

loaded onto large trucks or conveyors for transport to either the coal preparation plant or

directly to where it will be used.

3.3.1.1 Strip Mining

Strip mining exposes coal by removing earth above each coal seam. This earth to be removed is

referred to as 'overburden' and is removed in long strips. The overburden from the first strip is

deposited in an area outside the planned mining area and referred to as out-of-pit dumping.

Overburden from subsequent strips is deposited in the void left from mining the coal and overburden

from the previous strip. This is referred to as in-pit dumping.

It is often necessary to fragment the overburden by use of explosives. This is accomplished by

drilling holes into the overburden, filling the holes with explosives, and detonating the explosive.

The overburden is then removed, using large earth-moving equipment, such as draglines, shovel and

trucks, excavator and trucks, or bucket-wheels and conveyors. This overburden is put into the

17

previously mined (and now empty) strip. When all the overburden is removed, the underlying coal

seam will be exposed (a 'block' of coal). This block of coal may be drilled and blasted (if hard) or

otherwise loaded onto trucks or conveyors for transport to the coal preparation (or wash) plant. Once

this strip is empty of coal, the process is repeated with a new strip being created next to it. This

method is most suitable for areas with flat terrain.

Equipment to be used depends on geological conditions. For example, to remove overburden that is

loose or unconsolidated, a bucket wheel excavator might be the most productive. The life of some

area mines may be more than 50 years.

3.3.1.2 Contour Mining

The contour mining method consists of removing overburden from the seam in a pattern following

the contours along a ridge or around the hillside. This method is most commonly used in areas with

rolling to steep terrain. It was once common to deposit the spoil on the downslope side of the bench

thus created, but this method of spoil disposal consumed much additional land and created severe

landslide and erosion problems. To alleviate these problems, a variety of methods were devised to

use freshly cut overburden to refill mined-out areas. These haul-back or lateral movement methods

generally consist of an initial cut with the spoil deposited downslope or at some other site and spoil

from the second cut refilling the first. A ridge of undisturbed natural material 15 to 20 ft (5 to 6 m)

wide is often intentionally left at the outer edge of the mined area. This barrier adds stability to the

reclaimed slope by preventing spoil from slumping or sliding downhill.

The limitations of contour strip mining are both economic and technical. When the operation reaches

a predetermined stripping ratio (tons of overburden/tons of coal), it is not profitable to continue.

Depending on the equipment available, it may not be technically feasible to exceed a certain height

of highwall. At this point, it is possible to produce more coal with the augering method in which

spiral drills bore tunnels into a highwall laterally from the bench to extract coal without removing

the overburden.

3.3.1.3 Mountaintop Removal Mining

Mountaintop coal mining is a surface mining practice involving removal of mountaintops to expose

coal seams, and disposing of associated mining overburden in adjacent "valley fills." Valley fills

occur in steep terrain where there are limited disposal alternatives.

Mountaintop removal combines area and contour strip mining methods. In areas with rolling or steep

terrain with a coal seam occurring near the top of a ridge or hill, the entire top is removed in a series

18

of parallel cuts. Overburden is deposited in nearby valleys and hollows. This method usually leaves

the ridge and hilltops as flattened plateaus. The process is highly controversial for the drastic

changes in topography, the practice of creating head-of-hollow-fills, or filling in valleys with mining

debris, and for covering streams and disrupting ecosystems.

Spoil is placed at the head of a narrow, steep-sided valley or hollow. In preparation for filling this

area, vegetation and soil are removed and a rock drain constructed down the middle of the area to be

filled, where a natural drainage course previously existed. When the fill is completed, this underdrain

will form a continuous water runoff system from the upper end of the valley to the lower end of the

fill. Typical head-of-hollow fills are graded and terraced to create permanently stable slopes.

3.3.2 Underground Mining

Most coal seams are too deep underground for opencast mining and require underground mining, a

method that currently accounts for about 60 percent of world coal production. In deep mining,

the room and pillar or bord and pillar method progresses along the seam, while pillars and timber are

left standing to support the mine roof. Once room and pillar mines have been developed to a

stopping point (limited by geology, ventilation, or economics), a supplementary version of room and

pillar mining, termed second mining or retreat mining, is commonly started. Miners remove the coal

in the pillars, thereby recovering as much coal from the coal seam as possible. A work area involved

in pillar extraction is called a pillar section.

Modern pillar sections use remote-controlled equipment, including large hydraulic mobile roof-

supports, which can prevent cave-ins until the miners and their equipment have left a work area. The

mobile roof supports are similar to a large dining-room table, but with hydraulic jacks for legs. After

the large pillars of coal have been mined away, the mobile roof support's legs shorten and it is

withdrawn to a safe area. The mine roof typically collapses once the mobile roof supports leave an

area.

There are six principal methods of underground mining:

Longwall mining accounts for about 50 percent of underground production. The longwall

shearer has a face of 1,000 feet (300 m) or more. It is a sophisticated machine with a rotating

drum that moves mechanically back and forth across a wide coal seam. The loosened coal falls

onto an armored chain conveyor or pan line that takes the coal to the conveyor belt for removal

from the work area. Longwall systems have their own hydraulic roof supports which advance

with the machine as mining progresses. As the longwall mining equipment moves forward,

19

overlying rock that is no longer supported by coal is allowed to fall behind the operation in a

controlled manner. The supports make possible high levels of production and safety. Sensors

detect how much coal remains in the seam while robotic controls enhance efficiency. Longwall

systems allow a 60-to-100 percent coal recovery rate when surrounding geology allows their use.

Once the coal is removed, usually 75 percent of the section, the roof is allowed to collapse in a

safe manner.

Continuous mining utilizes a Continuous Miner Machine with a large rotating steel drum

equipped with tungsten carbide picks that scrape coal from the seam. Operating in a "room and

pillar" (also known as "bord and pillar") system—where the mine is divided into a series of 20-

to-30-foot (5–10 m) "rooms" or work areas cut into the coalbed—it can mine as much as 14 tons

of coal a minute, more than a non-mechanised mine of the 1920s would produce in an entire day.

Continuous miners account for about 45 percent of underground coal

production. Conveyors transport the removed coal from the seam. Remote-controlled continuous

miners are used to work in a variety of difficult seams and conditions, and robotic versions

controlled by computers are becoming increasingly common. Continuous mining is a misnomer,

as room and pillar coal mining is very cyclical. In the US, one can generally cut 20 feet (6

meters) (or a bit more with MSHA permission) (12 meters or roughly 40 ft in South Africa

before the Continuous Miner goes out and the roof is supported by the Roof Bolter), after which,

the face has to be serviced, before it can be advanced again. During servicing, the "continuous"

miner moves to another face. Some continuous miners can bolt and rock dust the face (two major

components of servicing) while cutting coal, while a trained crew may be able to advance

ventilation, to truly earn the "continuous" label. However, very few mines are able to achieve it.

Most continuous mining machines in use in the US lack the ability to bolt and dust. This may

partly be because incorporation of bolting makes the machines wider, and therefore, less

maneuverable.

Room and pillar mining consists of coal deposits that are mined by cutting a network of rooms

into the coal seam. Pillars of coal are left behind in order to keep up the roof. The pillars can

make up to forty percent of the total coal in the seam, however where there was space to leave

head and floor coal there is evidence from recent open cast excavations that 18th-century

operators used a variety of room and pillar techniques to remove 92 percent of the in situ coal.

However, this can be extracted at a later stage (see retreat mining).

Blast mining or conventional mining, is an older practice that uses explosives such

as dynamite to break up the coal seam, after which the coal is gathered and loaded onto shuttle

cars or conveyors for removal to a central loading area. This process consists of a series of

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operations that begins with ―cutting‖ the coalbed so it will break easily when blasted with

explosives. This type of mining accounts for less than 5 percent of total underground production

in the US today.

Shortwall mining, a method currently accounting for less than 1 percent of deep coal

production, involves the use of a continuous mining machine with movable roof supports,

similar to longwall. The continuous miner shears coal panels 150 to 200 feet (45 to 60 metres)

wide and more than a half-mile (1 km) long, having regard to factors such as geological strata.

Retreat mining is a method in which the pillars or coal ribs used to hold up the mine roof are

extracted; allowing the mine roof to collapse as the mining works back towards the entrance.

This is one of the most dangerous forms of mining, owing to imperfect predictability of when the

roof will collapse and possibly crush or trap workers in the mine.

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3.4 Production

Coal is mined commercially in over 50 countries. Over 7,036 Mt/yr of hard coal was produced in

2007, a substantial increase over the previous 25 years. In 2006, the world production of brown

coal (lignite) was slightly over 1,000 Mt, with Germany the world's largest brown coal producer at

194.4 Mt, and China second at 100.6 Mt.

Coal production has grown fastest in Asia, while Europe has declined. Since 2013, the world coal

production is decreasing, −6% in 2016. The top coal mining nations are:

Table 3.1: 2009 Estimate of total Coal production

Country Production

China 3450 Mt

United States 973 Mt

India 557 Mt

Australia 409 Mt

Russia 298 Mt

Indonesia 252 Mt

South Africa 250 Mt

Poland 135 Mt

Kazakhstan 101 Mt

Colombia 75 Mt

Most coal production is used in the country of origin, with around 16 percent of hard coal production

being exported.

Coal reserves are available in almost every country worldwide, with recoverable reserves in around

70 countries. At current production levels, proven coal reserves are estimated to last 147 years.

However, production levels are by no means level, and are in fact increasing and some estimates are

22

that peak coal could arrive in many countries such as China and America by around 2030. Coal

reserves are usually stated as either

(1) "Resources" ("measured" + "indicated" + "inferred" = "resources", and then, a smaller number,

often only 10–20% of "resources",

(2) "Run of Mine" (ROM) reserves, and finally

(3) "marketable reserves", which may be only 60% of ROM reserves. The standards for reserves are

set by stock exchanges, in consultation with industry associations. For example, in ASEAN countries

reserves standards follow the Australasian Joint Ore Reserves Committee Code (JORC) used by

the Australian Securities Exchange.

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3.5 Modern Mining

Technological advancements have made coal mining today more productive than it has ever been.

To keep up with technology and to extract coal as efficiently as possible modern mining personnel

must be highly skilled and well trained in the use of complex, state-of-the-art instruments and

equipment. Many jobs require four-year university degrees. Computer knowledge has also become

greatly valued within the industry as most of the machines and safety monitors are computerized.

The use of sophisticated sensing equipment to monitor air quality is common and has replaced the

use of small animals such as canaries, often referred to as "miner's canaries".[15]

In the United States, the increase in technology has significantly decreased the mining workforce. in

2015 US coal mines had 65,971 employees, the lowest figure since EIA began collecting data in

1978. However, a 2016 study reported that a relatively minor investment would allow most coal

workers to retrain for the solar energy industry.

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3.6 Environmental Impacts

Coal mining can result in a number of adverse effects on the environment.

Surface mining of coal completely eliminates existing vegetation, destroys the genetic soil profile,

displaces or destroys wildlife and habitat, degrades air quality, alters current land uses, and to some

extent permanently changes the general topography of the area mined.[36]

This often results in a

scarred landscape with no scenic value. Of greater concern, the movement, storage, and

redistribution of soil during mining can disrupt the community of soil microorganisms and

consequently nutrient cycling processes. Rehabilitation or reclamation mitigates some of these

concerns and is required by US Federal Law, specifically the Surface Mining Control and

Reclamation Act of 1977.

Mine dumps (tailings) could produce acid mine drainage which can seep

into waterways and aquifers, with consequences on ecological and human health.

If underground mine tunnels collapse, they cause subsidence of the ground above. Subsidence can

damage buildings, and disrupt the flow of streams and rivers by interfering with the natural drainage.

Coal production is a major contributor to global warming: burning coal generates large quantities

of carbon dioxide and mining operations can release methane, a known greenhouse gas, into the

atmosphere. The coal mining industry is working to improve its public image.

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3.7 Coal Mining by Country

1. Australia

Coal is mined in every state of Australia, but mainly in Queensland, New South Wales and Victoria.

It is mostly used to generate electricity, and 75% of annual coal production is exported, mostly to

eastern Asia.

In 2007, 428 million tonnes of coal was mined in Australia. In 2007, coal provided about 85% of

Australia's electricity production. In fiscal year 2008/09, 487 million tonnes of coal was mined, and

261 million tonnes was exported. In fiscal year 2013/14, 430.9 million tonnes of coal was mined,

and 375.1 million tonnes was exported. In 2013/14, coal provided about 69% of Australia's

electricity production.

In 2013, Australia was the world's fifth-largest coal producer, after China, the United States, India,

and Indonesia. However, in terms of proportion of production exported, Australia is the world's

second largest coal exporter, as it exports roughly 73% of its coal production. Indonesia exports

about 87% of its coal production.

2. Canada

Canada was ranked as the 15th coal producing country in the world in 2010, with a total production

of 67.9 million tonnes. Canada's coal reserves, the 12th largest in the world, are located largely in the

province of Alberta.

The first coal mines in North America were located in Joggins and Port Morien, Nova Scotia, mined

by French settlers beginning in the late 1600s. The coal was used for the British garrison

at Annapolis Royal, and in construction of the Fortress of Louisbourg.

3. Chile

Compared to other South American countries Chile has limited coal resources. Only Argentina is

similarly poor. Coal in Chile is mostly sub-bituminous with the exception of the bituminous coals of

the Arauco Basin in central Chile.

4. China

The People's Republic of China is by far the largest producer of coal in the world, producing over

2.8 billion tons of coal in 2007, or approximately 39.8 percent of all coal produced in the world

during that year. For comparison, the second largest producer, the United States, produced more than

1.1 billion tons in 2007. An estimated 5 million people work in China's coal-mining industry. As

many as 20,000 miners die in accidents each year. Most Chinese mines are deep underground and do

26

not produce the surface disruption typical of strip mines. Although there is some evidence

of reclamation of mined land for use as parks, China does not require extensive reclamation and is

creating significant acreages of abandoned mined land, which is unsuitable for agriculture or other

human uses, and inhospitable to indigenous wildlife. Chinese underground mines often experience

severe surface subsidence (6–12 meters), negatively impacting farmland because it no longer drains

well. China uses some subsidence areas for aquaculture ponds but has more than they need for that

purpose. Reclamation of subsided ground is a significant problem in China. Because most Chinese

coal is for domestic consumption, and is burned with little or no air pollution control equipment, it

contributes greatly to visible smoke and severe air pollution in industrial areas using coal for fuel.

China's total energy uses 67% from coal mines.

5. Colombia

Some of the world's largest coal reserves are located in South America, and an opencast mine

at Cerrejón in Colombia is one of the world's largest open pit mines. Output of the mine in 2004 was

24.9 million tons (compared to total global hard coal production of 4,600 million tons). Cerrejón

contributed about half of Colombia's coal exports of 52 million tons that year, with Colombia ranked

sixth among major coal exporting nations. The company planned to expand production to 32 million

tons by 2008. The company has its own 150 km standard-gauge railroad, connecting the mine to its

coal-loading terminal at Puerto Bolívar on the Caribbean coast. There are two 120-car unit trains,

each carrying 12,000 tons of coal per trip. The round-trip time for each train, including loading and

unloading, is about 12 hours. The coal facilities at the port are capable of loading 4,800 tons per hour

onto vessels of up to 175,000 tons of dead weight. The mine, railroad and port operate 24 hours per

day. Cerrejón directly employs 4,600 workers, with a further 3,800 employed by contractors. The

reserves at Cerrejón are low-sulfur, low-ash, bituminous coal. The coal is mostly used for electric

power generation, with some also used in steel manufacture. The surface mineable reserves for the

current contract are 330 million tons. However, total proven reserves to a depth of 300 metres are

3,000 million tons.

The expansion of the Cerrejón mine has been blamed for the forced displacement of local

communities.

6. Germany

Germany has a long history of coal mining, going back to the Middle Ages. Coal mining greatly

increased during the industrial revolution and the following decades. The main mining areas were

around Aachen, the Ruhr and Saar area, along with many smaller areas in other parts of Germany.

27

These areas grew and were shaped by coal mining and coal processing, and this is still visible even

after the end of the coal mining.

Coal mining reached its peak in the first half of the 20th century. After 1950, the coal producers

started to struggle financially. In 1975, a subsidy was introduced (Kohlepfennig). In 2007,

the Bundestag decided to end subsidies by 2018. As a consequence, RAG AG, the owner of the two

remaining coal mines in Germany, announced it would close all mines by 2018, thus ending coal

mining in Germany.

7. India

Coal mining in India has a long history of commercial exploitation starting in 1774 with John

Sumner and Suetonius Grant Heatly of the East India Company in the Raniganj Coalfield along the

Western bank of Damodar River. Demand for coal remained low until the introduction of steam

locomotives in 1853. After this, production rose to an annual average of 1 Mt and India produced

6.12 Mt per year by 1900 and 18 Mt per year by 1920, following increased demand in the First

World War, but went through a slump in the early thirties. The production reached a level of 29 Mt

by 1942 and 30 Mt by 1946. After independence, the country embarked upon five-year development

plans. At the beginning of the 1st Plan, annual production went up to 33 Mt. During the 1st Plan

period, the need for increasing coal production efficiently by systematic and scientific development

of the coal industry was being felt. Setting up the National Coal Development Corporation (NCDC),

a Government of India undertaking, in 1956 with the collieries owned by the railways as its nucleus

was the first major step towards planned development of Indian Coal Industry. Along with the

Singareni Collieries Company Ltd. (SCCL) which was already in operation since 1945 and which

became a government company under the control of Government of Andhra Pradesh in 1956, India

thus had two Government coal companies in the fifties. SCCL is now a joint undertaking of

Government of Telangana and Government of India.

8. Japan

The richest Japanese coal deposits have been found on Hokkaido and Kyushu.

Japan has a long history of coal mining dating back into the Japanese Middle Ages. It is said that

coal was first discovered in 1469 by a farming couple near Ōmuta, central Kyushu.[51]

In 1478,

farmers discovered burning stones in the north of the island, which led to the exploitation of the

Chikuhõ coalfield.

Following Japanese industrialization additional coalfields were discovered northern Japan. One of

the first mines in Hokkaido was the Hokutan Horonai coal mine.

28

9. Russia

Russia ranked as the fifth largest coal producing country in 2010, with a total production of 316.9

Mt. Russia has the world's second largest coal reserves. Russia and Norway share the coal resources

of the Arctic archipelago of Svalbard, under the Svalbard Treaty.

10. Spain

Spain was ranked as the 30th coal producing country in the world in 2010. The coal miners of Spain

were active in the Spanish Civil War on the Republican side. In October 1934, in Asturias, union

miners and others suffered a fifteen-day siege in Oviedo and Gijon. There is a museum dedicated to

coal mining in the region of Catalonia, called Cercs Mine Museum.

In October 2018, the Sánchez government and Spanish Labour unions settled an agreement to close

ten Spanish coal mines at the end of 2018. The government pre-engaged to spend 250 million Euro

to pay for early retirements, occupational retraining and structural change. In 2018, about 2.3 per

cent of the electric energy produced in Spain was produced in coal-burning power plants.

11. South Africa

South Africa is one of the ten largest coal producing countries and the fourth largest coal exporting

country in the world.

12. Taiwan

In Taiwan, coal is distributed mainly in the northern area. All of the commercial coal deposits

occurred in three Miocene coal-bearing formations, which are the Upper, the Middle and the Lower

Coal Measures. The Middle Coal Measures was the most important with its wide distribution, great

number of coal beds and extensive potential reserves. Taiwan has coal reserves estimated to be 100–

180 Mt. However, coal output had been small, amounting to 6,948 metric tonnes per month from 4

pits before it ceased production effectively in 2000.The abandoned coal mine in Pingxi District, New

Taipei has now turned into the Taiwan Coal Mine Museum.

13. Ukraine

In 2012 coal production in Ukraine amounted to 85.946 million tonnes, up 4.8% from 2011. Coal

consumption that same year grew to 61.207 million tonnes, up 6.2% compared with 2011.

More than 90 percent of Ukraine's coal production comes from the Donets Basin. The country's coal

industry employs about 500,000 people. Ukrainian coal mines are among the most dangerous in the

world, and accidents are common. Furthermore, the country is plagued with extremely

dangerous illegal mines.

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14. United Kingdom

Before the industrial revolution much of the coal was used near to its production, although there was

an active trade along the North Sea coast supplying coal to Yorkshire and London.

Many coalfields were developed in the industrial revolution. The oldest were

in Newcastle and Durham, South Wales, the Central Belt of Scotland and the Midlands, such as

those at Coal brookdale. The oldest continuously worked deep-mine in the United Kingdom

was Tower Colliery in the South Wales coalfield. This colliery was developed in 1805, and its

miners bought it out at the end of the 20th century, to prevent it from being closed. Tower Colliery

was finally closed on 25 January 2008.

The United Kingdom was ranked as the 24th coal producing country in the world in 2010, with a

total production of 18.2 million tonnes. Coal mining in the United Kingdom probably dates

to Roman times; coal production increased significantly during the Industrial Revolution in the 19th

century and peaked during World War I. As a result of its long history with coal Britain's

economically recoverable coal reserves have decreased, and more than twice as much coal is now

imported than produced.

15. United States

Coal was mined in America in the early 18th century, and commercial mining started around 1730

in Midlothian, Virginia.

The American share of world coal production remained steady at about 20 percent from 1980 to

2005, at about 1 billion short tons per year. The United States was ranked as the second highest coal

producing country in the world in 2010, and possesses the largest coal reserves in the world. In 2008

then-President George W. Bush stated that coal was the most reliable source of electricity. However,

in 2011 President Barack Obama said that the US should rely more on "clean" sources of energy that

emit lower or no carbon dioxide pollution. For a time, while domestic coal consumption for electric

power was being displaced by natural gas, exports were increasing. US net coal exports increased

ninefold from 2006 to 2012, peaked at 117 million short tons in 2012, then declined to 63 million

tons in 2015. In 2015, 60% of net US exports went to Europe, 27% to Asia.US coal production

increasingly comes from strip mines in the western United States, such as from the Powder River

Basin in Wyoming and Montana.

Coal has come under continued price pressure from natural gas and renewable energy sources, which

has resulted in a rapid decline of coal in the U.S. and several notable bankruptcies including Peabody

Energy. On 13 April 2016 it reported, that its revenue had reduced by 17 percent as coal prices fell

30

and that it had lost two billion dollars the previous year. It then filed Chapter 11 bankruptcy on 13

April 2016. The Harvard Business Review discussed retraining coal workers for solar

photovoltaic employment because of the rapid rise in U.S. solar jobs. A 2016 study indicated that

this was technically possible and would account for only 5% of the industrial revenue from a single

year to provide coal workers with job security in the energy industry as whole.

President Donald Trump pledged to bring back coal jobs during the 2016 US presidential election,

and as president he announced plans to reduce environmental protection, particularly by repealing

the Clean Power Plan (CPP). However, industry observers have warned that this might not lead to a

boom in mining jobs. A 2019 projection by the Energy Information Administration estimated that

coal production without CPP would decline over coming decades at a faster rate than indicated in the

agency's 2017 projection, which had assumed the CPP was in effect.

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Introduction of Coal India Limited

Coal India Limited (CIL) is an Indian state-controlled coal mining and refinery company

headquartered in Kolkata, West Bengal, India and the largest coal-producing company in the

world and a Maharatna company.

The company contributes to around 82% of the coal production in India. It produced 554.14

million tonnes of raw coal in 2016-17, an increase from its earlier production of 494.24 million

tonnes of coal during FY2014–15 and earned a revenue of 95,435 crore (US$14

billion) from sale of coal in the same financial year. As on 14 October 2015, Union

Government of India owns CIL and controls the operations of CIL through Ministry of

Coal. In April 2011, CIL was conferred the Maharatna status by the Union Government of

India, making it one of the seven Maharatnas. As on 14 October 2015, its market capitalisation

was 2.11 lakh crore (US$31 billion) making it India's 8th most valuable company by market

value.

Coal India Limited (CIL) the state owned coal mining corporate came into being in November

1975. With a modest production of 79 Million Tonnes (MTs) at the year of its inception CIL

today is the single largest coal producer in the world. Operating through 82 mining areas CIL is

an apex body with 7 wholly owned coal producing subsidiaries and 1 mine planning and

consultancy company spread over 8 provincial states of India. CIL also manages 200 other

establishments like workshops, hospitals etc. Further, it also owns 26 technical & management

training institutes and 102 Vocational Training Institutes Centres. Indian Institute of Coal

Management (IICM) as a state-of-the-art Management Training ―Centre of Excellence‟ – the

largest Corporate Training Institute in India - operates under CIL and conducts multi-

disciplinary management development programmes. CIL is a Maharatna company -

a privileged status conferred by Government of India to select state owned enterprises in order

to empower them to expand their operations and emerge as global giants. The select club has

only few members out of more than Central Public Sector Enterprises in the country.

32

Vision

To emerge as a global player in the primary energy sector committed to provide energy security

to the country by attaining environmentally & socially sustainable growth through best practices

from mine to market.

Mission

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.

Values

Our core values include equality, justice, transparency and accountability. These are practiced

in all spheres of our business activities. As we put emphasis on dual development, the values are

monitored for the entire workforce by five Central Trade Unions. Wherever the values are not

being followed, the issue is discussed with the management to reach a mutually agreed upon

solution. These solutions often have necessary corrective measures that are taken if required.

CIL is the largest coal producing company in the world. It produced 536.51 MT (million tonne)

coal during FY2015-16. Coal India operates through 81 mining areas in eight states in India. As

on 1 April 2015, it has 430 coal mines out of which 175 are open cast, 227 are underground and

28 are mixed mines. Production from open cast mines during 2014-15 was 92.91% of total

production of 494.24 MT. Underground mines contributed to 7.09% of production. CIL further

operates 15 coal washeries, out of which 12 are for coking coal and 3 are for non-coking coal

with 23.30 MTY and 13.50 MTY capacities respectively. It also manages 200 other

establishments like workshops, hospitals, training institutes, mine-rescue setups, etc.

Coal India Limited (CIL) produces coal through seven of its wholly owned subsidiaries. These

are Eastern Coalfields Limited (ECL), Bharat Coking Coal Limited (BCCL), Central Coalfields

Limited (CCL), Western Coalfields Limited (WCL), South Eastern Coalfields Limited (SECL),

Northern Coalfield Limited (NCL), and Mahanadi Coalfields Limited (MCL). Its 8th wholly

owned subsidiary Central Mine Planning & Design Institute Limited (CMPDIL) provides

exploration, planning and technical support to all the 7 production subsidiaries. CMPDIL also

provides consulting services to third-party market clients in the field of exploration, mining,

allied engineering & testing, management-systems, training, etc.

33

Table 4.1: Production of Coal

Name of Subsidiary Coal Production(in MT)

Coking Coal Non-Coking

Coal

Total Coal

Production

Bharat Coking Coal Limited(BCCL) 26.970 4.243 31.213

Central Coalfields Limited(CCL) 16.156 31.905 48.061

Eastern Coalfields Limited(ECL) 0.043 33.868 33.911

Mahanadi Coalfields Limited(MCL) - 107.894 107.894

Northern Coalfields Limited(NCL) - 70.021 70.021

South Eastern Coalfields Limited(SECL) - 118.062 118.062

Western Coalfields Limited(WCL) 0.330 41.957 42.287

34

4.1 Introduction of South Eastern Coalfields Limited

South Eastern Coalfields Limited (SECL) is the largest coal producing company of India. It is

a "Miniratna" Company, and one of eight fully owned subsidiaries of Coal India Limited. The

company has its headquarter at Bilaspur, Chhattisgarh, India and 92 mines spread over

Chhattisgarh & Madhya Pradesh; 70 underground, 21 opencast, and 1 mixed. It is a schedule 'B'

Mini Ratna CPSE in coal & lignite under the administrative control of Ministry of Coal.

The Company came into existence in 1985, when the Government of India, decided to bifurcate

a part of coal mines held by Western Coalfields Limited into new company called South Eastern

Coalfields Limited, along with Central Coalfields Limited, which was bifurcated into Northern

Coalfields Limited, for administrative purpose.

The coal reserves of South Eastern Coalfields Limited are spread over two States, namely,

Chhattisgarh and Madhya Pradesh and the Company is operating 89 mines with 35 Mines in the

State of Madhya Pradesh and 54 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 operation, the mines have been grouped in three

Coalfields, namely, Central India Coalfields (CIC), Korba Coalfields and Mand-Raigarh

Coalfields with 13 operating Areas.

Central India Coalfields

1. Chirimiri

2. Baikunthpur

3. Bisrampur

4. Hasdeo

5. Bhatgaon

6. Jamuna & Kotma

7. Sohagpur

8. Johilla

35

Korba Coalfields

1. Korba

2. Kusmunda

3. Dipka

4. Gevra

Mand-Raigarh Coalfields

1. Raigarh

Coal Carbonization Plant

1. Dankuni Coal Complex, Dankuni, West Bengal.

36

Vision

The vision of South Eastern Coalfields Limited (SECL) is to be leading energy supplier in the

country, by adopting the best practices and leading technology from mine to market.

Mission

The mission of South Eastern Coalfields Limited (SECL) is to produce and market the

planned quantity of Coal and Coal products efficiently and economically with due regard to

safety, conservation and quality.

Values

For the betterment of society at large, various initiatives are carried out as a part of corporate

social responsibility by SECL. In view of the impact that the mining activity has on people, a

general ideology behind Corporate Social Responsibility is to help society in and around our

command areas i.e., places where SECL operates.

Subsidiaries:

Two subsidiary companies of SECL have been formed in the form of joint Venture

companies, viz. Chhattisgarh East Railway Limited (CERL) & Chhattisgarh East-West

Railway Limited(CEWRL) with equity shareholding of more than 50 % in each company

by SECL.

37

4.2 SECL Organisation Structure

38

4.3 Board of Directors

Functional Directors

1. Mr A. P. Panda Chairman cum Managing Director

2. Dr R. S. Jha Director (Personnel)

3. Mr R. K. Nigam Director (Technical) Operations

4. Mr Manoj Kumar Prasad Director (Technical) P&P

5. Mr N. K. Agarwala Director (Finance)

Part-time Official Directors

1. Mr Ashish Upadhyaya, IAS Joint Secretary

2. Mr S. N. Prasad Director (Marketing)

Part-time Non-Official Directors

1. Dr Sunil Kumar

2. Dr B. S. Sahay

3. Mr Vinod Jain, CA

4. Mr Shriram Keshav Deshpande, CA

Permanent Invitee

1. Mr P. K. Jena

Company Secretary

1. Mr S. M. Yunus

39

4.4 Coalfield

South Eastern Coalfields Limited (SECL) was incorporated on 28.11.1985 with the objective

to acquire and take over business of the Bilaspur division of Western Coalfields & the

Talcher division of Central Coalfields limited. SECL is a Schdule-B Miniratna CPSE in the

coal & lignite sector. It is one of the eight subsidiaries of Coal India Limited (A Govt. of

India Undertaking) under the Ministry of Coal having registered Corporate Office at

Bilaspur, Chhattisgarh.

Administrative Setup

SECL has 113 approved coal projects (80 underground projects and 33 opencast projects) for

a total ultimate capacity of 149.02 MTY. Out of 113 projects, 34 projects (14 UG & 20 OC),

having rated capacity of 29.86 MTY, are on-going & new projects, and 54 projects (42 UG &

12 OC), with rated capacity of 119.16 MTY, have been completed as on 31 st March 2013.

As on 01.04.13, SECL has 84 working mines with 34 mines in the state of M.P. & 50 mines

in the state of C.G. besides a Coal Carbonization Plant namely Dankuni Coal Complex

(DCC) at Dankuni in West Bengal, on lease basis from Coal India Limited. Out of these 84

mines 62 mines are underground, 21 are opencast & 1 is mixed mine.

SECL has four major coalfields namely, Central India Coalfield (CIC), Korba Coalfields,

Mand-Raigarh Coalfield and Ramkola-Tatapani coalfield. For effective administrative

control & operations, the mines have been grouped in 13 administrative Areas, as under :

40

I. CENTRAL INDIA COALFIELDS

It extends from Bishrampur Coalfield in the east to Umaria-Korar coalfield in the west and

located in 7 districts viz. Surguja, Surajpur, Balrampur& Korea in Chhattisgarh and Shahdol,

Anuppur&Umaria in Eastern Madhya Pradesh. This includes 14 coalfields namely Korar,

Umaria, Johilla, Sohagpur, Sonhat, Jhilimili, Chirimiri, Sendurgarh, Korea-garh,

Damhamunda, Panch-bahini, Hasdeo-Arand, Lakhanpur and Bishrampur. Out of the above, 3

coalfields namely Korar, Koreagarh and Damhamunda are of only geological importance and

do not have any potential coal seams. Two coalfields namely Panchbahini and Hasdeo-Arand

are virgin. Central India Coalfields mostly comprises of B & C grade of coal with geological

reserves of 18732.31 MT. The deposits are at the depth of 0-1200 meters & therefore

extraction is mainly amenable to underground mining except a few blocks in eastern part of

these coalfields which have opencast potential.

II. KORBA COALFIELD

Korba coalfield is located in Korba district of Chhattisgarh. As per GST, a total of

11755.66.21 MT coal reserves is available in Korba coalfield. The deposits are restricted into

two distinct zones:

Thick seam/quarriable power grade zone comprising of grade E, F & G Coal.

Thin seam/underground superior grade zone comprising of grade B to D grade coal.

III. MAND & RAIGARH COALFIELD

It is situated in Raigarh district of Chhattisgrah.

It comprises of grades A to G and has the reserves of 25119.84 MT of coal.

It has large potential for power grade coal and is amnable to open-cast mining.

41

IV. RAMKOLA & TATAPANI COALFIELDS

It is located in Surguja district of Chhattisgrah.

It is virgin & its exploitation yet to be taken up.

It comprises of A to G grade coal and have the total reserves of 2645.34 MT.

Infrastructural facilities for coal evacuation yet to be established here.

Coal Deposits of SECL

As on 01.04.2012, the total geological coal reserve in SECL command area is 58253.15

Million tons, out of which 16076.54 Million tones is the proved reserve. The coal deposits of

SECL occurs in the great Son-Mahanadi master basin. It spreads over 6 districts namely

Korba, Raigarh, Surguja, Surajpur, Balrampur& Korea) in Chhattisgarh (C.G) state and 3

districts viz. Shahdol, Anuppur & Umaria districts in Madhya Pradesh (M.P). The total coal

reserve in M.P as on 01.04.2012 is 7407.00 MT while in C.G, it is 50846.15 MT.

Table 4.2: Coal Reserves in M.P. and C.G.

State Depth Proved Indicated Inferred Total

Coal Reserves in M. P. 0-1200

Meter

2088.69 5095.30 223.01 7407.00

Coal Reserves in C. G. 13987.85 33448.25 3410.05 50846.15

TOTAL 16076.54 38543.55 3633.06 58253.15

42

4.5 Technology

I. Underground Technology

SECL is in its strive for higher production from underground mines has successfully

introduced thick seam extraction with cable bolting, depillaring of contiguous seams with

floor pinning and Powered Support Longwall Technology with Chinese Collaboration at

Balrampur and Rajendra Under Ground Mines, Mass production technology with continuous

miners in collaboration with UK and other developed countries, Hydro-fracturing and long

hole blasting at goaf from underground for hard roof management at Churcha West Mines,

Indigenously developed Cutter Loader to avoid blasting in gassy mine etc.

Long Wall Mining : This technology was introduced and has successfully been

operated during last one decade in SECL at Kumda New, Balrampur and Rajendra

Mines.

Shortwall Mining : This method is a combination of Longwall and Board & Pillar

(B&P) mining which envisages the extraction of standing coal pillars (formed by

development in Board & Pillar layout) with the help of Self Advancing PSLW

equipment. It is successfully in operation at Balrampur UG mine of Bishrampur Area.

II. Mass Production Technology

Continuous Miner & Shuttle Car Combination: Initially it was introduced at Anjan

Hill mine of Chirimiri Area in May 2002. Thereafter, equipment shifted to NCPH

mine. Two more CM packages have been deployed at Kurja-Sheetaldhara UG of

Hasdeo Area & Pinoura UG at Johilla Area.

Low Capacity Continuous Miner (LCCM). LCCM is the Continuous Miner of

smaller capacity. It has been introduced at Rani Atari UG mine of Chirimiri Area.

Here Coal evacuation from faces is done by Coal Haulers.

43

High Wall Mining : This technology is suitable for thin (minimum 0.9m) and

moderate coal seams where neither opencast nor the conventional underground

mining methodology is possible to exploit the coal seams economically. It enables

recovery of coal from surface pits that have reached the final high wall position due to

uneconomic stripping ratio, or where coal has become sterilized due to surface

constraints (infrastructure, water-courses, habitation etc.). Highwall mining has been

successfully introduced for the first time in Coal India Ltd in February,2011 at Sharda

mine of Sohagpur Area.

44

III. OPENCAST TECHNOLOGY

Up-gradation of technology is a continuous process. Modern generation shovels and dumpers

having capacity 10 meter cube and 120 Te dumper are being used in Open Cast mines. With

use of such HEMMs, SECL has the distinction of operating biggest opencast mine in the

country. As a Major mechanization drive in opencast mining, 42 Cum Electric Rope Shovels

and 240 Te. Dumpers have been deployed for the first time in the country at Gevra & Dipka

Mega OC projects.

Electric Rope Shovel

Dumper

45

Introduction of Surface Miners for coal production in Gevra OC project.

Surface Miners have been deployed for coal production at Gevra Expn, Dipka OC Expn,

Kusmunda OC Expn & Chhal OC Project of Raigarh Area. The total coal production

from surface miners during FY 12-13 was 71.116 MT.

46

4.6 Awards and Accolades

2018 SECL bagged ―Best HR Organization Award‖ on 15.02.2018

at Mumbai.

SECL has been awarded with “Best Corporate Social

Responsibility Practices” award at Mumbai.

2017 SECL has been awarded “India’s Best Company of the year

Award 2017” by Institutional Brand Consulting Corporations,

USA at Mumbai.

SECL gets “2nd Prize in Safety” and “2nd Prize in Resettlement

and Rehabilitation” at Coal India Foundation Day Ceremony on

1.11.2017.

2016 SECL gets “1st Prize in Safety” at Coal India Foundation

Day Ceremony on 1.11.2016.

2nd Prize in “Corporate Performance” & “Coal Quality” at Coal

India Foundation Day Ceremony on 1.11.2016.

2015 SECL bagged First Prize in Lowest Injury Frequency Rate (Category -

2) from the President of India, Safety Award organized by DGMS on

20.03.2015.

SECL awarded “2nd Best Enterprise Award” by Forum of Women

in Public Sector (WIPS) at Delhi

SECL bagged award for achievement of ‖ Excellent MOU Rating‖ and

“Excellence in Resettlement and Rehabilitation” along with

“Quality Awareness Award” at Coal India Foundation Day

Ceremony on 1.11.2015.

SECL received “Environment award” for its Environment

Conservation initiatives by Department of Environment, Govt. of

Madhya Pradesh on 05.06.2015.

2014 SECL received “Environment award” for Pollution Control &

Environment Conservation by Department of Environment, Govt. of

Madhya Pradesh on 05.06.2014

SECL bagged “Excellent Rating Award” for Excellent Performance in

47

production at Coal India Foundation Day Ceremony on 1.11.2014.

2013 SECL gets the Corporate Performance Award for highest Production

of Coal in India

SECL gets the Corporate Award for best CSR activities among all Coal

Companies.

2012 SECL bagged “First prize in Environment‟, Special prize for ―Best

contribution in off-take‟ and the ―Special prize on Safety‟ at Coal

India Foundation Day Ceremony on 01.11.2012 at Kolkata.

SECL has been awarded the ―Best HR Strategy in Line with Business

Award‖ by The Employer Branding Institute (EBI) at Hyderabad on

7th December, 2012

SECL bagged First prize in ―Excellence in Corporate governance‟

category at Coal India Foundation Day Ceremony on 01.11.2012 at

Kolkata.

2011 “Business leadership award” to CMD SECL by Institute of Economic

Studies, New Delhi.

2009 “Rajbhasha Shree Award” to CMD SECL by Bharatiya Rajbhasha

Vikas Sansthan,Dehradun.

“Rajiv Gandhi Sabhavana” Award to Shri R.S.Singh D(P) SECL

by Rajiv Gandhi Form, Orissa.

“Greentech Environment Excellance Award” to SECL by

Greentech Foundation, New Delhi.

“International Status Award” to CMD SECL by Economic

Growth Society of India, New Delhi.

“Ugadi Award” to SECL by Delhi Telugu Academy, New Delhi.

Rashtriya Vikas Ratna Award to CMD SECL by Economic Growth

Society of India, New Delhi.

“Pride of India Award” to SECL and “Gold Medal” to CMD SECL

by Institute of Economic Studies, New Delhi.

“Genentech Safety Silver Award” to SECL by Greentech Foundation,

48

New Delhi.

“Best Enterprises Award” First Pruxe to SECL By Forum of

Women in Public Sector (WIPS).

2008 “Excellence Award” to SECL and “Udyog Ratna” Award to

CMD XSECL by Institute of Economic Studies (IES) New Delhi.

Indira Gandhi Smriti Swarna Padak to Shri R.S.Singh D(P) SECL by

Public Sector Today Magazine, Hyderabad.

XITH All India House Journal Award to “Pratibimb” SEECL

by Mayaram Sjurjan Foundation, Raipur (CG).

National Safety Award for 2004 2005 & 2006 by Honorable President

of India.

Best Chief Executive Award to CMD SECL By Public Sector

Today (National Monthly Magazine) under the category of Rajiv

Gandhi Memorial National awards for excellence in Indian

Industries.

2007 International Gold Star Millennium Award to CMD, SECL By Citizens

Integration Peace Society.

Infraline Energy Black Diamond Award to SECL

Corporate Award 2006 for Top Indian Company in Mining Sector.

Third Prize in the best enterprises category 2007 to SECL in National

Seminar (WIPS).

Excellence award to CMD, SECL By Delhi Telugu Academy

Srendra Kumar Manglam CIL Rajbhasha Samman.

Excellence award to CMD, SECL By IES.

Udyog Ratna to CMD, SECL Award By IES.

2006 Green Tech Safety Silver Award.

Chhattisgarh Rajyotsava 2006 Raipur Best Presentation 2nd Prize in

Chhattisgarh.

2005 Kunwar Yudhwir Singh Afforestation Award , Raipur.

2004-05 Genentech Environment Excellence Silver award, New Delhi.

49

2003-04 Genentech Environment Excellence Silver award, New Delhi.

2002-03 Jawaharlal Nehru Memorial National award for Pollution Control &

Energy Conservation Hyderabad.

Genentech Environment Excellence Gold Award 2001-02 New Delhi.

1999-00 Best Population Control Award

1998 National Safety Award

1999-98 SCOPE Award

1997 National Safety Award

1996 Best Pollution Control Award

National Safety Award

1995 National Safety Award

1994-95 Jawaharlal Nehru Memorial Award

1991-92 Indira Priyadarshini Vrikshamitra Award

50

4.7 Certifications

SECL has been accredited with SA8000 CERTIFICATION on (06.08.2013)

SECL has been accredited with ISO 14001:2004 CERTIFICATION on 26.04.2012

SECL has been accredited with ISO 9001:2008 CERTIFICATION

SECL has been accredited with ISO 9001:2000 CERTIFICATION

51

4.8 CSR Activities of SECL

1. Feeder raw water pipe line along with pump under Jamunia water supply scheme at

Umaria of Johilla Area under CSR Jamunia Water supply project, Umaria city

Location of project: Umaria City

Cost of project: 122.85 Lakh

Distance from Nowrozabad: 30 km

Distance of pipe line: 3000 mtr

Objective of the project

Providing drinking water to Umaria City.

Background of project

The whole water supply in Umaria city is totally based on Umarar River which is passing

through middle of city. Due to less rain, 7 years ago a small dam was constructed on the river

for sufficient water storage and supply. Now people are totally dependent on that dam and

river and due to this the river now became a dirty drain. The river is totally depends on rain

but in summer season water supply in river become very less. Around 1000 families directly

depend on this dam for drinking water within 500mtr radius.

In that regards the SECL‟s Chapha colliery is located near by the Umaria town and per day

12.0 million liter water drain out to chapha nala after pumping out. And 3 million liter /day

water is sufficient to Umaria city for their daily needs. The drain water from Chapha colliery

is 4 times of present need of town and after 60 years the growing population of Umaria town

will increase up to 1 lakh so this waste water will fulfill the present and future need of people

of Umaria.

This scheme will fulfil major objectives:

The non-functioning Devitering Tube well can pump out the water to filter so that this will

fulfil the Umaria town‟s people present and future need.

52

As the indirect benefit if Nagar Palika pumps out that water so that it will apply less cost

than colliery‟s pump out cost.

If water supply done from the Chapha Colliery so that the load on Umarar River will

decrease and regular water supply on the river will be maintained.

2. Construction of CC Road from Imliduggu to Manikpur RailwayCorssing in Korba

Dist.

Road is vital for any population living in rural or urban areas. Effective and efficient

transportation provide economic benefits that result in multiplier effects such as better

accessibility to markets, employment and additional investments. The development role

transport plays in an economy makes it a derived demand as the sector in itself is not

productive but is responsive to forces generation in the production and consumption sectors.

Generally, a model for transportation and economic development can be summarized as:

Providing Infrastructure – Improving (Physical) Accessibility – Enhancing Mobility –

Improving Welfare.

Distance is one of the major challenges of education in most developing countries.

Access to education can be made possible by the provision of transport infrastructure. In

areas were communities don‟t merit certain educational facilities because of threshold

reasons, an effective and efficient transport plan when put in place will make mobility easy

for inhabitants of these small communities to the bigger ones to have access to schools.

The lack of transport services, or problems associated with those available, are major

constraints to agriculture and rural development. Agrarian communities are highly dependent

on a reliable transport system for internal transportation and for linking rural communities to

the market centers to sell their farm products and buy industrial goods.

This means that, agricultural surpluses would be transported to markets or even the urban

areas creating place utility. The access will thus provide farmers with larger markets to sell

their goods and consequently raise more income. Increases in real income may cause induced

expenditure on the part of farmers who may even purchase from other sectors.

53

When the two transportation objectives (low transportation cost and satisfactory

transportation service) are available in regions, there is high attractiveness to investors

because they are assured of lower distribution cost and improved access for both employees

and customers. Thus, investing in transport yields growth in a number of firms and expansion

of the already existing ones and firm growth implies more jobs.

Keeping these points, SECL, Kusmunda Area has constructed road from Imliduggu to

Manikpur Railway Crossing in Korba. Road had been in very bad shape and several accidents

has also been taken place in this road.

Outcome

With new roads being built, a network has been created. These roads help them improved

their access to schools, health care and markets. Also, since the participatory approach is

used, the maintenance is done by the Nagar Nigam. The said road work was executed by

Nagar Nigam, Korba and the work was financed by SECL, Kusmunda Area. Till date Rs.

221.49 lakhs has been paid to Nagar Nigam, Korba for the construction of said road work

against the total sanctioned amount of Rs. 316.55 Lakhs. Balance amount is to be paid after

due formalities.

3. Construction of building (double storied) to house a low cost pharmacy and also a

central sterilization and disinfection facility at the campus along with the

equipment at the hospital located at Ganiyari.

Background

Jan Swasthya Sahyog is providing primary health care services in parts of Kota and Lormi

blocks of District, establishing a three tier health care system based on women health workers

at village level, supported by sub centre clinics and a base clinic at Ganiyari. JSS working

towards making affordable health care possible.

54

Objective of the Projects

To consolidate Primary health care services in select forest and forest-fringe villages in the

Adivasi areas of rural Bilaspur through the village health worker based strategy through

skill up gradation of VHWs and implementing specific operational, technical and social

inputs.

For improving clinical services for the poor and under privileged population in rural and

tribal Chhattisgarh.

To create a Low cost pharmacy and a central sterilization and disinfection facility at Jan

Swasthya Sahyog.

Impact of the Project

The referral centre at Ganiyari has grown over last 10 years, now seeing nearly 250-300

patients on each OPD day.

Profile of JSS project villages:

The patients from project area spend less for ambulatory care, compare to non-project

area.

The Ganyari hospital admitted an average of 900 patients every year. About half patients

are females and a little more than quarters are children.

4. HARIHAR (GREEN) Chhattisgarh 2010 Campaign

The state-run forest development corporation would be the agency to execute and

supervise the massive plantation drive. Under the programme, the state government

plans to plant 70 million saplings by the sides of roads that connect Chhattisgarh with

neighbouring states. In all, 2000 km roads would be covered in the campaign.

To complete the task, Chhattisgarh government has decided to take up the project

under Public Private Partnership model. ―The Chief Minister, Raman Singh called

upon the corporate houses to assist the state government in making green state,‖ the

officials added.

The forest department had given the target to major industrial houses in the state to

plant saplings. SECL had been asked to plant saplings in 210 km stretch.

55

Objective

Proposal is for road side tree plantation for length of (70 + 70) = 140 km under Hariyar

Chhattisgarh Programme Year 2014 (70 km for 2013 and 70 km for 2014).

Total Budget: Rs. 21.92 crores.

Impact of project

Ensuring environment sustainability, ecological balance, protection of Flora and Fauna,

animal welfare, agro forestry, and conservation of natural resources and maintaining quality

of soil, air and water.

SECL has taken part in the Campaign by providing Rs. 2192.29 lakhs for road side

plantation of 140 km.

5. Construction of marine drive road from old bridge to new bridge at Raigarh &

construction of approach road from Bade Attarmuda to new bridge at Raigarh

under CSR initiatives.

The „Marine drive has been carried out with the assistance of South Eastern Coalfields Ltd

(SECL) as part of its Corporate Social Responsibility (CSR) initiative. It has been dedicated

to the people of Raigarh. It has been built to cater the transportation need of the villagers as

well as under the Raigarh beatification plan on the bank of Kelo river at a cost of Rs 13.40

crore.

Under this project, a 1,320 meters long four lane road from Chakradhar Nagar to Kabir

Chowk, RCC retaining wall, Anicut, and concrete drain has been built. It also contains 1.5

meter wide footpath on the both side of the 15 meter wide four lane road by the bank of Kelo

River, which is the life line of Raigarh. An Anicut has also been constructed so that the river

always stays filled with water.

The expansion of the „Marine drive‟ started in February 2014 and has already been

completed. It has given a relief to the local residents of Raigarh especially of Public colony,

villages of Chote Attarmuda, Bade Attarmuda, Kelo Bihar Colony and Keyaghat Mohalla. It

is to worth mentioning that ten years ago, a high level bridge was constructed on the Kelo

56

river near SECL Office area but it could not be used due to lack of an approach road. People

use the footpath on both the side for morning and evening walk. Marine drive has not only

made life easier for the people and school students of Raigarh city but also has gained

popularity as a beautiful asset in the city.

57

4.9 Marketing Mix

Product Profile

Coal is an organic matter and is a product of sedimentary environment.

As geological processes apply pressure to dead biotic matter over time, under suitable

conditions it is transformed successively into

a) Peat, considered to be a precursor of coal, has industrial importance as a fuel in some

regions, for example, Ireland and Finland.

b) Lignite, also referred to as brown coal, is the lowest rank of coal and used almost

exclusively as fuel for electric power generation. Jet is a compact form of lignite that

is sometimes polished and has been used as an ornamental stone since the Iron Age.

c) Sub-bituminous coal, whose properties range from those of lignite to those of

bituminous coal are used primarily as fuel for steam-electric power generation.

Additionally, it is an important source of light aromatic hydrocarbons for the chemical

synthesis industry.

d) Bituminous coal, dense mineral, black but sometimes dark brown, often with well-

defined bands of bright and dull material, used primarily as fuel in steam-electric

power generation, with substantial quantities also used for heat and power

applications in manufacturing and to make coke.

e) Anthracite, the highest rank; a harder, glossy, black coal used primarily for

residential and commercial space heating. It may be divided further into

metamorphically altered bituminous coal and petrified oil, as from the deposits in

Pennsylvania.

58

On the basis of caking property:-

Coking coal

Non-coking coal

On the basis of size:-

ROM (Run Over Mines)

Steam (more than 250 mm)

Slack (less than 250 mm)

On the basis of basification:-

1. Washed coal:- Ash percentage 24-35%

2. Washer coal power:- Ash percentage 15-20%

3. Rejects:- (stone +coal)

4. Slurry :- Fine particles of coal

59

Types of Coal

a) Coking coal :

These coals, when heated in the absence of air, form coherent beads, free from volatiles, with

strong and porous mass, called coke.

These have coking properties

Mainly used in steel making and metallurgical industries

Also used for hard coke manufacturing.

b) Semi coking coal:

These coals, when heated in the absence of air, form coherent beads not strong enough to be

directly fed into the blast furnace. Such coals are blended with coking coal in adequate

proportion to make coke.

These have comparatively less coking properties than coking coal.

Mainly used as blend-able coal in steel making, merchant coke manufacturing and other

metallurgical industries.

c) Non-coking coal:

These are coals without coking properties.

Mainly used as thermal grade coal for power generation

Also used for cement, fertilizer, glass, ceramic, paper, chemical and brick manufacturing,

and for other heating purposes.

d) LTC coke:

LTC Coke(CIL Coke) is a smokeless, environment friendly product of the Dankuni Coal

Complex, obtained through low temperature carbonisation.

60

Used in furnaces and kilns of industrial units

Also used as domestic fuel by halwais, hotels, etc.

e) Coal fines / Coke Fines :

These are the screened fractions of feed raw coal and LTC coke (CIL coke) respectively,

obtained from the Dankuni Coal Complex and other coke oven plants.

Used in industrial furnaces as well as for domestic purposes.

f) Tar / Heavy oil / Light oil / Soft Pitch :

These are products from Dankuni Coal Complex using low temperature carbonisation of non-

coking coal in vertical retorts.

Used in furnaces and boilers of industrial plants as well as power houses, oil, dye,

pharmaceutical industries, etc.

61

Table 4.3: Various gross calorific value (GCV) based bands of non-cooking coal.

Sl. No. GCV Bands (Kcal / Kg)

G-1 Exceeding 7000

G-2 Exceeding 6700 and not exceeding 7000

G-3 Exceeding 6400 and not exceeding 6700

G-4 Exceeding 6100 and not exceeding 6400

G-5 Exceeding 5800 and not exceeding 6100

G-6 Exceeding 5500 and not exceeding 5800

G-7 Exceeding 5200 and not exceeding 5500

G-8 Exceeding 4900 and not exceeding 5200

G-9 Exceeding 4600 and not exceeding 4900

G-10 Exceeding 4300 and not exceeding 4600

G-11 Exceeding 4000 and not exceeding 4300

G-12 Exceeding 3700 and not exceeding 4000

G-13 Exceeding 3400 and not exceeding 3700

G-14 Exceeding 3100 and not exceeding 3400

G-15 Exceeding 2800 and not exceeding 3100

G-16 Exceeding 2500 and not exceeding 2800

G-17 Exceeding 2200 and not exceeding 2500

62

People (Customer)

TYPES OF CUSTOMER:-

1. Existing Customer

2. New Customer

Following are the list of customer:-

1. Steel industry

2. Power houses

3. Fertilizer

4. Sponge iron

5. CPP (Captive power plant)

6. Brick making

7. Chemicals

8. Paper

9. Iron

10. CPSU (central/public sector unit)

11. Cement

63

Place

DISPATCH (SUPPLY) FROM SECL:-

1. Delhi

2. Jharkhand

3. Bihar

4. Orissa

5. West Bengal

6. Punjab

7. Haryana

8. Utter Pradesh

9. Jammu Kashmir

MODE OF TRANSPORTATION:-

1. Rail

2. Road

64

Price

Table 4.4: Run of mine price for Non-Cooking Coal

Grade GCV Range Power Utilities,

Fertilizers &

Defence Sector

Sectors other

than Power

Utilities,

Fertilizers &

Defence Sector

G-1 Exceeding 7000 * *

G-2 Exceeding 6700 and not exceeding 7000 3288 3288

G-3 Exceeding 6400 and not exceeding 6700 3144 3144

G-4 Exceeding 6100 and not exceeding 6400 3000 3000

G-5 Exceeding 5800 and not exceeding 6100 2737 2737

G-6 Exceeding 5500 and not exceeding 5800 2317 2524

G-7 Exceeding 5200 and not exceeding 5500 1926 2311

G-8 Exceeding 4900 and not exceeding 5200 1465 1757

G-9 Exceeding 4600 and not exceeding 4900 1140 1368

G-10 Exceeding 4300 and not exceeding 4600 1024 1228

G-11 Exceeding 4000 and not exceeding 4300 955 1145

G-12 Exceeding 3700 and not exceeding 4000 886 1036

G-13 Exceeding 3400 and not exceeding 3700 817 980

G-14 Exceeding 3100 and not exceeding 3400 748 897

G-15 Exceeding 2800 and not exceeding 3100 590 708

G-16 Exceeding 2500 and not exceeding 2800 504 604

G-17 Exceeding 2200 and not exceeding 2500 447 536

65

Note: For GCV exceeding 7000 Kcal/Kg, the price shall be increased by Rs 100/- per tonne

over and above the price applicable for GCV band exceeding 6700 but not exceeding 7000

Kcal/Kg, for Increase in GCV by every 100 Kcal/Kg or part thereof.

An additional amount of Rs 450 per tonne to be charged over and above the notified price in

respect of the coal produced.

66

4.10 FSA Distribution

SECL would undertake verification of such consumer of erstwhile non-core sector

consumers, in a time bound manner, either directly or through an agency, so as to check

the veracity of their claim of being bonafide consumers of coal and thereafter act

accordingly.

FUNCTION OF SALES DEPARTMENT:-

The main function of sales department is to dispatch of goods. There are eight sections.

1. TRAFIC SECTION:- Deal with railway for supply of rake

2. Road sales section:- This section take care of all the activity related to supply of coal

through roadways.

3. Legal Section:- This section concerned with legal dispute settlement. Customer

grievance comes under this department.

4. SA (Fuel Supply Agreement) Section:- This section take care of agreement with

customer.

5. E- auction:- Work related with auction is known as e-auction.(Rajesh Mishra)

6. SCP (Sales Co-ordination and Planning):- yearwise, monthwise, areawise, sidingwise,

sectorwise, dispatch planning.

7. Sales Administration:- All the stationary and official items are provided by sale

Administration.

8. Sales Realisation:- All the coal supply on the basis of advance money. When the

advance money become more or less then this department take care of this type of activity.

67

E-AUCTION:-

There are two companies who conduct auction for SECL.

1. MSTC

2. Metajunction

Coal is being regularly sold through electronic auction (e-auction) route at a market driven price in

accordance to the NCDP provision. Currently, CIL is conducting e-auction under different schemes

as below:

Spot E-Auction: Under this scheme, any Indian buyer can procure coal through a consumer

friendly single window in a simple and transparent manner for their own consumption or for

trading. Spot E-auction is in operation from Nov’07

Special Spot E-Auction: Special Spot E-Auction was introduced during 2015-16. Any

Indian buyer including traders can buy coal under Special Spot E-Auction with longer

validity period of lifting.

Special forward E-Auction: Special forward E-Auction was introduced in the year 2015-16

to make the coal available to the power producers with flexible period of lifting.

Exclusive E-Auction: Exclusive E-Auction was introduced in the year 2015-16 for non-

power consumers including CPP with flexible period of lifting.

Special auction for Power

Special Forward E-Auction for Power producers was launched in 2015-16 which is continued in

2017-18 for making the coal available to the power consumers who are in need of coal. For the

period of April-December 2017, around 27.4 MT coal was booked by Power consumers under this

scheme.

Special Spot E-auction

Under the scheme, about 0.35 MT coal was allocated for the period April-December 2017.

68

Exclusive auction for Non-Power

Exclusive E-Auction Scheme for non-power consumers was launched in 2015-16 to make coal

available to non-power consumers (including CPPs).The scheme has been continued in the year

2017-18 wherein a quantity of 10.7 MT has been booked during the period April-December 2017.

Table 4.5: Performance of different E-auction Schemes in 2017-18

2017-18 (April-December)

Auction Special forward for

Power

Exclusive for Non-

power

Special Spot

Total Qty allocated

(in Mill Tonnes)

27.4 10.7 0.35

Total Notified Value

(in Crore Rs.)

3175 1625 50

Total Booking Value

(in Crore Rs.)

3974 2078 60

Increase over

Notified Value (in %)

25.1% 27.9% 19.5%

Modes of transport

Important modes of transport of coal and coal product in CIL are Railways, Road, Merry-Go-Round

Systems (MGR), Conveyor Belts and the Multi Modal Rail-cum-Sea Route. The share of these

modes of transport in the total movement of coal and coal product.

Table 4.6: Share of modes of transport

Modes of transport Share%

Railway 55%

Road 26%

MGR 17%

Belt-Conveyors/ Ropeways 2%

69

Progress made under new coal distribution policy (NCDP)

Prior to introduction of New Coal Distribution Policy in October, 2007, the consumers were broadly

classified in two categories - Core and Non-Core Sector. The basis for earlier classifying consumers

was solely based on their role in economic development. However, the erstwhile classification of the

consumers under New Coal Distribution Policy has been dispensed with. Under this policy each

sector / consumers have been treated on merit, keeping in view the regulatory provisions applicable

thereto. For Power, cement and sponge iron sector, the Standing Linkage Committee (long term) is

authorized to recommend their coal requirement. On the basis of such recommendation a Committee

on letter of Assurance (CLOA) at CIL issues coal company wise allocation of quantity. Coal

companies issue letter of Assurance with specified milestones to be achieved by the LOA holder

within stipulated period to become entitled for executing Fuel Supply Agreements (FSA) for coal

supply. Supply of Coal to all existing valid consumers has been brought under legally enforceable

Fuel Supply Agreements.

70

A research methodology or involves specific techniques that are adopted in research process

to collect, assemble and evaluate data. It defines those tools that are used to gather relevant

information in a specific research study. Surveys, questionnaires and interviews are the

common tools of research.

5.1 Research Design

The research design that is being used is descriptive method.

Advantages of descriptive method:

The research is being conducted with a group of people from which the interpretations

can be easily made.

The research is done with few number of people

The data that we use is both PRIMARY and SECONDARY data.

5.2 Sampling

In this project, I have taken 115 peoples for making the survey report on the basis on

questionnaires.

5.3 Analysis Tools

1. Google Forms

Google Forms is a web-based app used to create forms for data collection purposes. The form

is web-based and can be shared with respondents by sending a link, emailing a message, or

embedding it into a web page or blog post. Data gathered using the form is typically stored in

a spreadsheet.

2. ANOVA (F-Test)

The analysis of variance (ANOVA or F-test) is used in such problem where a research wants

to test for the significances of the difference between more than two as sample mean. This is

one of the most powerful statistical techniques. The ANOVA is used in every type of

experiment design concentrating both natural and social sciences.

71

One Way Classifications

In one way classifications, data are collected according to one criterion. The null hypothesis

takes the form that is; arithmetic means of the population from which the K samples are

randomly drawn are equal to one another.

Following steps are involved in the analysis of variance

i) Compute the variance between the samples:

Further steps involved to calculate variance between samples are calculated the mean of each

samples.

a) Calculated the grand average mean.

b) Take the difference between mean of the various samples and grand averages.

c) Square these deviations and obtain the total which will give sum square between the

samples &

d) Divide the total obtained in steps (d) by degree of freedom. The degrees of freedom will be

one less than the no. of samples.

ii) Calculated the variance with in the samples:

The step involved here is

a) Calculated the mean of each sample.

b) Take the deviations of various items in a sample from the mean values of the respective

samples.

c) Square these deviations and obtain the total which gives the sum of squares within the

samples and

d) Divided the total obtained in the step (c) by degrees of freedom. The degrees of freedom

are obtained by deducting from the total no. of items the no. of samples.

Degree of freedom = n – k

Where,

k-is the no. of samples

n-is the total no. of all observations

iii) Calculated the F ratio as follows:

Variance between the samples

F = -------------------------------------

Variance within the samples

72

Compare the calculated F values of freedom of at certain level of significance (Generally

0.05).

If the calculated values of F exceeds the tabular values. Then the different in samples mean is

significant that is due to simple sampling fluctuation or samples do not come from the same

population on the other hand, it the calculated values F is less than the table values, the

difference is not significant and hence, could have arisen due to fluctuation of simple

sampling.

73

Hypothesis

H1: There is significant difference between factors regarding the product.

H2: There is significant difference between factors regarding the promotional activities.

H3: There is significant difference between factors regarding the distributional channel.

74

Good

Excellent

Table 6.1

VIEW ABOUT SECL

No. of Respondents Percentage

Excellent 73 63%

Good 42 37%

Bad 0 0%

No Comment 0 0%

Total 115 100

Analysis:

63% of the interviewees have the opinion that they have Excellent view about SECL and

remaining 37% of the interviewees have the opinion that they have Good view about SECL.

Chart 6.1

75

Yes

No

Table 6.2

FACING ANY PROBLEM WITH COMPANY DISTRIBUTION SYSTEM

No. of Respondents Percentage

Yes 10 9%

No 105 91%

Total 115 100%

Analysis:

9% of interviewees have the opinion that they are facing problem with the company

distribution system and 91% says no problem.

Chart 6.2

76

No

Table 6.3

OTHERS COMPANIES ARE BETTER THAN SECL

No. of Respondents Percentage

Yes 24 21%

No 91 79%

Total 115 100%

Analysis:

21% of interviewees have the opinion that others company are better than SECL and others

79% says that the others company are not better than the company.

Chart 6.3

77

Very Fast

Very Low

Table 6.4

DELIVERY TIME OF COAL BY SECL

No. of Respondents Percentage

Very Fast 68 59%

Satisfactory 47 41%

Slow 0 0%

Total 115 100%

Analysis:

59% of interviewees have the opinion that the processing time of the company is very fast

and remaining 41% says that the processing time is satisfactory.

Chart 6.4

78

More than sufficient

Sufficient

Less than Sufficient

Table 6.5

CURRENT POSITION OF SECL

No. of Respondents Percentage

More than sufficient 47 41%

Sufficient 64 56%

Less than sufficient 4 3%

Total 115 100%

Analysis:

41% of interviewees have the opinion that the current position of the company is more than

sufficient, 56% says sufficient and others 3% say that the current position of the company is

less than sufficient.

Chart 6.5

79

Yes

No

Table 6.6

WANT ANY CHANGES IN THE COMPANY SERVICE

No. of Respondents Percentage

Yes 7 6%

No 108 94%

Total 115 100%

Analysis:

6% of the interviewees have the opinion that they want change in the company service and

remaining 94% says that they don‟t want change in the company service.

Chart 6.6

80

Very High

Normal

Very low

Usages of the Quality of the Size of coal Quantity of the Availability of coa coal coal the coal

Table 6.7

Factors regarding the "product"

Usages of the

coal

Quality of

the coal

Size of

coal

Quantity of

the coal

Availability

of the coal

Very High 52 76 23 78 75

Normal 51 39 90 37 40

Very Low 12 0 2 0 0

Using Anova Single Factor Analysis:

We get,

F = -3.24464E-16

F-critical = 3.47805

So, F < F-critical which means rejecting the alternative hypothesis and accepting the null

hypothesis.

As concluding, there is no significant difference between the factors regarding product.

Chart 6.7

81

Consumer-seller interface and meetings

Corporate Social Relationship

Service rendered by official/staff

Very High

Normal

Very Low

80

70

60

50

40

30

20

Table 6.8

Factors regarding the "promotional activities"

Response Service rendered by

official/staff

Corporate Social

Relationship

Consumer-seller

interface and

meetings

Very High 38 59 37

Normal 67 56 74

Very low 8 0 4

Using Anova Single Factor Analysis:

We get,

F = 0.000417

F-critical = 5.143253

So, F < F-critical which means rejecting the alternative hypothesis and accepting the null

hypothesis.

As concluding, there is no significant difference between the factors regarding promotional

activities.

Chart 6.8

82

of distribution logistical network Mode of

order and delivery Time lag between Options regarding Adequacy of existing Number of channel

Very High

Normal

Very Low

Table 6.9

Factors regarding the "distribution channel"

Response Time lag

between order

and delivery

Options

regarding Mode

of transportation

Adequacy of

existing

logistical

network

Number of channel of

distribution

Very High 0 14 16 23

Normal 11 36 34 27

Very Low 39 0 0 0

Using Anova Single Factor Analysis:

We get,

F = 8.61978E-16

F-critical = 4.066181

So, F < F-critical which means rejecting the alternative hypothesis and accepting the null

hypothesis.

As concluding, there is no significant difference between the factors regarding distribution

channel.

Chart 6.9

83

7.1 Findings

63% of the interviewees have the opinion that they have Excellent view about SECL and

remaining 37% of the interviewees have the opinion that they have Good view about

SECL.

9% of interviewees have the opinion that they are facing problem with the company

distribution system and 91% says no problem.

21% of interviewees have the opinion that others company are better than SECL and others

79% says that the others company are not better than the company.

59% of interviewees have the opinion that the processing time of the company is very fast

and remaining 41% says that the processing time is satisfactory.

41% of interviewees have the opinion that the current position of the company is more than

sufficient, 56% says sufficient and others 3% say that the current position of the company

is less than sufficient.

6% of the interviewees have the opinion that they want change in the company service and

remaining 94% says that they don’t want change in the company service.

There is no significant difference between the factors regarding product, since F < F-critical

which means rejecting the alternative hypothesis and accepting the null hypothesis.

There is no significant difference between the factors regarding promotional activities, since F

< F-critical which means rejecting the alternative hypothesis and accepting the null hypothesis.

There is no significant difference between the factors regarding distribution channel, since

F < F-critical which means rejecting the alternative hypothesis and accepting the null

hypothesis.

Consumers are classified into two types-core and non-core.

84

75% of the quantity as per the normative requirement of the consumers‟ actual supply of

coal through FSA by CIL. The balance 25% of coal requirement of the units will be sourced

by them through e-auction/import of coal etc.

Distribution of coal is done by railway and roadway from SECL.

Non coking coal is more available. In SECL, the available non-cooking is grade from G3

to G17.

G1 coal’s quality is the best among them. That’s why its price is more than other grade of

coal.

85

7.2 Suggestion and Recommendation

1. Now days, SECL is facing problem to fulfill the demand of its customer. So it should pay

attention towards high level of coal production.

2. SECL should use high technology machines for coal production.

3. SECL should pay attention towards the security of people who live near coal fields,

because sometimes they have to face a lot of problems.

86

8.1 Conclusion

Coal is one of the primary sources of energy, accounting for about 67% of the total

energy consumption in the country.

India has some of the largest reserves of coal in the world.

Indian coal has high ash content and low calorific value. However, with the present

rate of around 0.8 million tons average daily coal extraction in the country, the

reserves are likely to last over 100 years.

The energy derived from coal in India is about twice that of energy derived from oil,

as against the world, where energy derived from coal is about 30% lower than energy

derived from oil.

87

8.2 Bibliography

Anderson et al.,(1997) also found that the effectiveness of channel members‟

coordination and communication among manufacturers, agents, distributors, and

retailers improved channel member performance.

Frazier et al.,(1989), which focused on industrialized manufacturers.

Laroche, Michel et.al., (2005)studied the effect of coupons on consumer's brand

categorisation and choice process using fast-food restaurants in China.

Lewis, Michel (2004) developed an approach for simultaneous measurement of the

influence of a dynamic loyalty programme and more traditional short- term

promotions.

Blattberg, Peacock and Sen (1976) define a purchase strategy as a general buying

pattern.

Blattberg, Peacock, and Sen (1976, 1978) describe 16 purchasing strategy segments.

Dodson,Tybout, and Sternthal evoke self-perception theory to predict that if a

purchase is induced by an external cause as opposed to an internal cause.

Tversky and Kahneman (1974) have shown that people rely on a limited number of

heuristic principles that reduce complex tasks of assessing probabilities and predicting

values to simpler judgmental operations.

Bitner (1992) believes that consumers expect satisfactory service from the sales

people of the preferred textile shop.

Mallen (1977, p. 174) argues that ―there are certain factors which the channel

strategist must take into consideration and through which he must operate, but over

which he has little control. These factors are outside the direct influence of his

company and he must adapt to 29 them to be successful. These factors … may be

referred to as the environment‖

Kumar, and Swaminathan, Srinivasan (2005) studied the impact of coupons on brand

sale and how that impact decays over the life of the coupon.

Lewis, Michel (2004) developed an approach for simultaneous measurement of the

influence of a dynamic loyalty programme and more traditional short- term

promotions.

88

Matsuo, and Kusumi, (2002) focused their research on Sales person‟s procedural

knowledge, experience and performance in Japan.

Dave Kurlan's (2010) study on turnover prevention, found that involuntary turnover

occurs less often because most sales managers are too patient, accept mediocrity, and

avoid uncomfortable confrontation associated with termination.

Rajan, and Srinivasan, (2012) delved into sales force effectiveness in pharmaceutical

industry and found that the most measurable features in sales person‟s performance

were interpersonal skills, salesmanship skills, technical skills and sales techniques.

Santos, and Bourne, (2005) studied the impact of performance targets on behaviour in

sales force.

https://www.coalindia.in/index.html

http://www.secl-cil.in/index.php

https://shodhganga.inflibnet.ac.in/

https://en.wikipedia.org/

89

8.3 Appendix

Questionnaire

Name……………………………………………………………………..

City……………………………………………………………………….

Mobile No………………………………………………………………...

1. Are you aware of SECL?

a. Yes

b. No

2. What is your view about SECL?

a. Excellent

b. Good

c. Bad

d. No comment

3. Are you facing any problem with company distribution system?

a. Yes

b. No

c. Always

d. Never

4. Do you think that others companies are better than SECL?

a. Yes

b. No

5. Delivery time of coal by SECL?

a. Very fast

b. Satisfactory

c. Slow

6. What do you think about current position of SECL?

a. More than sufficient

b. Sufficient

90

c. Less than sufficient

7. Do you want any changes in the company service?

a. Yes

b. No

8. Kindly rate/tick your response in respect of following factors regarding the ―product‖.

Factors Very low Normal Very high

a. Usages of the coal

b. Quality of the coal

c. Size of coal

d. Quantity of the coal

e. Availability of the coal

9. Kindly rate/tick your response in respect of following factors regarding the

―promotional activities‖.

Factors Very low Normal Very high

a. Service rendered by officials/staff

b. Corporate Social Relationship

c. Consumer-Seller interface and

meetings

10. Kindly rate/tick your response in respect of following factors regarding ―distribution

channel‖.

Factors Very low Normal Very high

a. Time lag between order and

delivery

b. Options regarding Mode of

transportation

c. Adequacy of existing logistical

network

d. Number of channel of distribution

91