performance & cil overview 2013

8/12/2019 Performance & CIL Overview 2013

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S.B.MAHAPATRASR. FACULTY, IICM

1

Performance Profile of CILand Financial Overview


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Performance Statistics2

For the year 2012-13 2011-12 2010-11Production of Raw Coal-Underground 37.78 38.39 40.02-Opencast 414.41 397.45 391.30Overburden Removal 750.11 735.14 732.13Coal Off-Take 465.19 433.08 424.50 Average Manpower 365125 377447 390243 Year end Manpower 358824 371546 383347

Output per Man Shift (OMS)-Underground 0.77 0.75 0.77-Opencast 11.21 10.40 10.06-Overall 5.30 4.88 4.73


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Financial Statistics3

For the year 2012-13 2011-12 2010-11Gross Margin 26830 23296 18302Gross Profit 25017 21327 16537Profit Before Tax 24972 21273 16463Net Profit After Tax 17356 14788 10867Net Profit After Tax & Dividend 8513 8472 8404

Gross Sales 88281 78410 60241

Net Sales 68303 62415 50229


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Coal Sector Performance - Production :Past & future

4

38.4

55.72

72

78

102

200.89

328

431

526

540

1055

1300

70

90

170.62

279361

431

436

664

640

0 500 1000 1500

1955-56

1960-611971-72

1973-74

1978-79

1989-90

2001-022006-07

2010-11

2011-12

2016-17 (P)

2021-22 (P)

Coal India

All India


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Landmark Years : Production Achievement5

70 89 100

204306

404482

0100200300

400500600

Production (in MT)

Production (in MT)


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Subsidiary wise Production & Profit Performancefor the year 2012-13

6

CompanyName

Coal(in MT)

OB(in MCM)

Productivity(OC, UG)

PBT(Rs in Cr.)

PAT(Rs. In Cr.)

Overall 452.19(414.41, 37.78)

758 5.30(11.21, 0.77)

24979.04 17356.37

ECL 33.90(27.05, 6.85)

76 1.94(10.20, 0.46)

1897.18 1655.54

BCCL 31.21(28.06, 3.15)

97 2.50(8.30, 0.35)

1709.06 1498.80

CCL 48.05(47.03, 1.02)

63 4.43(6.11, 0.32)

2683.56 1885.61

NCL 70.02(70.02, 0.00)

196 13.76(13.76, 0.00)

4420.58 2682.13

WCL 42.29(34.09, 8.20)

113 2.75(4.32, 1.10)

428.87 324.31

SECL 118.22(101.35, 16.87)

119 6.73(20.06, 1.35)

6290.37 4299.03

MCL 107.90(106.22, 1.68)

90 15.98(21.12, 0.97)

6202.48 4212.44


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Coal Sector Production Performance in theterminal year of XI Plan period

7

Participants

Org. Plg.Com.Proj.

RevisedProj.

LatestTarget

Actual2011-12

Demand 731 713 694 694 Availability

Coal India 521 486 452 436

SCCL 41 42 52 52Others 118 102 52 51Import 51 83 138 104


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Coal Import8

23 30

38 4354 58

6984

92

135

0

20

40

60

80

100

120

140

160


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Man Productivity9

0.66

3.54 3.79 4.09 4.47

4.73 4.88 5.30

0123456


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Man Productivity (OMS) U/G & O/C10

0.6 0.64 0.69 0.71 0.73 0.76 0.78 0.77 0.750.9

6.08

7.188

8.6 8.95 9.51

10.06 10.39

0

2

4

6

8

10

12

U/G

O/C


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11

OPPORTUNITY : GROWTH IN DEMAND.PLAN-WISE DEMAND-AVAILABILITY PROJECTION

(Figures in Million Tons)XI PLAN XII PLAN(2011-12) (2016-17)

AVAILABILITYCIL 486.50 647.50

SCCL 47.00 55.00OTHERS 96.41 346.00-------- ---------

TOTAL 629.91 1048.50 AVAILABILITY

DEMAND 710.94 1125.00

[YEARS MENTIONED ARE TERMINAL YEARS]


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Production of Coal by Indian Coal Sector Actual & Projected

12

72 102201

328431

532 540 556

1030

0

200

400

600

800

1000

1200

All India


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Coal Sector Demand & Supply Scenario13

379 404 431 486 436

78 89 101

14310250 59

6883

104

0100200300

400500600700800

ImportOther Prod

CIL Prod

As per Annual Plan 2010-11, MoC, GoI


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Coal producers in India14


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Indias Energy Requirement from Coal 15

Oil, 30%

NaturalGas, 10.0%

Coal, 53.0%

NuclearEnergy, 1%

HydroElectricity, 5%

Renewables, 1%


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Electricity generation % source wise(India vs. global)

16


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Coal consumption global overview17

1986 (3.2 billion MT) 2007 (5.5 billion MT)

Europe 17% 7%

Former USSR 17% 6%

North America 21% 18%

Asia Pacific 39 % 65% (China 47%, India 9%)


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Power generation capacity in India as on 30.04.201218

Source Installed Capacity (MW)Coal 110213Gas 17000Lignite & Diesel 4800Total Thermal 132013Hydro 38991

Nuclear 4870Others 24503Total 200287


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Per capita electricity consumption19

Countries Per capita KWH

World 2574

USA 12670

India 750

Pakistan 608

Bangladesh 214


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Energy India vs. World20

Particulars India WorldCoal P. Res. BT 114 980Use BT 0.54 6.0

Oil Reserve BB 11 1300Use BB 0.98 31Gas Res. (T.Cft) 52 7100Use (T.Cft) 1.9 108Power cap. (GW) 173 5300Use (TKWH) 0.86 21Nuclear Cap MW 4750 382000


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MOU Performance21

50% on non-financial parameter

Production, off take, capacity utilization, strategic planning,globalization, diversification and integration, CSR, HRD(training), customer satisfaction, R&D (patent, new product,cost reduction, energy conservation), project implementationand technology up gradation.


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MOU Performance22

50% on financial parameter.

Turnover (Net)Cost of ProductionGross MarginPBDIT/TurnoverPBDIT/Capital employedNet profit/Net worthR&D/Turnover


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Strategic Performance of Coal Sector23

Merger and acquisition strategy Acquisition ofBHP Billiton asset at Australia by Gujrat NRE Coke.In the line of different Indian companies, Coal IndiaLimited has also created a war chest of $1.6b foracquisition of coal properties.

CIL holds 28.57% equity in a SPV International Coal Venture Limited formed in joint venture with SAIL,RINL, NMDC and NTPC with a soul purpose to acquirecoal resources abroad through equity stake or greenfield project.

CIL successfully bagged two virgin coal block coveringaround 224 sq.k.m. in Mozambique throughcompetitive bidding and exploration development willcommence shortly.


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Strategic initiative to acquire coal propertiesabroad

24

CIL plan to acquire coal resources abroad throughequity stake in working or green field projects.Floated global Expression of Interest for selection of

strategic partner for overseas operation.Present focus on Mozambique, Australia, South Africa, Indonesia & USA. A panel of Investment Banker has been formed toscout for acquisition opportunities abroad andassisting due diligence.


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Strategic initiative to acquire coal properties abroad(cont )

25

CIL holds 28.57% equity in a SPV (InternationalCoal Venture Limited) formed as a joint venture with consortium PSU, SAIL, RINL, NMDC, NTPC,CIL.CIL successfully bagged two virgin coal blockscovering area of 224 sq.km. in Mozambiquethrough competitive bidding. Adani group has purchased coal properties in Australia by acquiring linc energy for US$2.7b andLanco has purchased Griffin coal


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Acquisition of coal properties abroad by othercompanies

26

Most of the steel and energy company hunting for CoalMining asset abroad.Jindal Steel & Power Limited in joint venture withChinas Meijing Energy group to take over AustralianCoal Company Rocklan Richfield Limited.Reliance has purchased three mines in Indonesia.Tata Power has already purchased 30% stake in twomajor Indonesian coal producer Bhumi Resources,Kaltim Prime Coal.

ESSAR has purchased Trinity Coal Corporation (USA)GMR Infra has acquired 100% stake of an IndonesianCoal Mining Company (PTBSL)


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Coal Beneficiation27

Size provide no protection. Competitive advantage comes fromcost leadership / differentiation for a product like coal where scope for differentiation is limited, but as per global practice coal needs tosupplied to the consumer as desired .The quality should be consistent .Presently CIL have 17 washeries 11cooking coal and 7 non cooking coal havingtotal capacity 39.4 mt.( less than 10% ofCIL production ).SECL , MCL, ECL,NCL do not have any washeries


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Continued 28

CIL has planned to set up 20 non coking coal washerieshaving total capacity 111.6mt. On Build OperateMaintained basis ( MCL 40mt. )Global bid has been invited for participation by

organizations having core competency in coal washingpractice.CIL has decided to set up Coal Washeries with ownfinance in all its prospective open Cast mines of capacity2.5mt. and above . Washing significantly reduce emission by power plant.Cost of transportation of Coal get significantly reduced- we should follow the global practice.


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Corporate Number - Profit29

Company 2012-13 2011-12 2010-11 2009-10 2008-09ECL 1897 962 106.57 333.00 (-) 2105.70

BCCL 1709 822 1093.69 794.00 (-) 1376.99

CCL 2684 1970 1860.22 1533.00 763.80

NCL 4421 4266 3956.33 3766.00 3131.01

WCL 429 441 1067.97 931.00 516.12

SECL 6290 6003 3777.53 3063.00 1817.93

MCL 6202 5464 4039.30 2954.00 2580.25

CMPDIL 30 31 23.69 19.00 6.74CIL/NEC 10338 8588 4723 3870.00 3657.68

Sub Total 34000 28588 20648 17263.00 8990.84

Less: div. from subs. (9021) 7307 4237 3299.00 3246.84

Total profit (PBT) 24979 21272 16463 13964.00 5744.00

1 6 1 88 1086 62 .00 20 8

(Rs. In Crores)


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Capital Turnover Ratio Capacity to generatesales revenue in relation to capital employed

31

2010-11 2009-10 2008-09

Capital Turnover Ratio

(Net sales/capital

employed)

1.63 1.90 2.31


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Investment in fixed asset & working capital32

2010-11 2009-10 2008-09 2007-08 2006-07 2005-06

Working Capital

(As on 31 st March)

17902.00 11415.00 5942.74 6611.61 6007.00 2670.38

Net Fixed Asset

(As on 31 st March)

12842.91 12035.96 11021.24 10496.59 10216.86 10142.72

(Rs. In Crores)


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Liquidity Ability to pay off dues in time33

2010-11 2009-10 2008-09 2007-08 2006-07 2005-06

Current Ratio

(Current Asset /

Current Liabilities)

1.39 1.27 1.14 1.22 1.26 1.12

Quick Ratio

(Quick Asset / CurrentLiabilities)

1.05 0.96 0.76 0.75 0.76 0.70


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Liquidity Subsidiary wise position34

31.03.2011 31.03.2010

CA CL CR CA CL CR

ECL 2638 9725 0.27 2328 8936 0.26

BCCL 3334 8037 0.41 2575 7948 0.32CCL 6640 5831 1.14 5666 5317 1.06

WCL 6817 4144 1.64 6102 3847 1.58

SECL 10298 8256 1.25 9396 8038 1.17

NCL 12182 5891 2.06 10473 4797 2.18

MCL 14642 10404 1.40 11819 8104 1.46

CMPDI 410 460 0.89 475 525 0.90

CIL 64396 46493 1.39 54324 42909 1.27

(Rs. In Crores)


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Capital Structure Low financial leverage35

2010-11 2009-

10

2008-

09

2007-

08

2006-

07

2005-

06

2004-

05

Debt : Equity 0.24 0.26 0.31 0.27 0.29 0.33 0.39

Debt : Networth 0.05 0.06 0.10 0.09 0.10 0.15 0.24


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Sources & application of fund

36

Year ending 31 st Mar. 2011 2010 2009 2008 2007 2006

A. Source of fund

(i) Equity 6316.36 6316.36 6316.36 6316.36 6316.36 6316.36

(i) Reserve & Surplus 27000.84 19478.85 8615.16 7676.20 6798.49 5893.98

(i) AccumulatedProfit & Loss

- 4232.84 5349.80 4774.45 1904.48

Net Worth

(i)+(ii)+(iii)

33313.82 25793.68 19165.04 19342.36 17889.30 14114.82

Govt. Loan -- -- -- -- -- Loan (Foreign etc.) 1520.96 1623.68 1980.54 1675.48 1835.88 2018.41

Bank borrowing 32.60 463.17 167.94 208.43 37.84 214.96

Others 1657.37 1378.33 -- 197.64 242.59 566.26

Total of A 36524.75 29259.39 21315.42 21423.91 20275.61 16914.45

(Rs. In Crores)

i) Others 760.07 1081.31 926.77 977.72 690.63


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Sources & application of fund37

Current Assets

a) Inventory 5585.64 4401.49 3682.88 3383.96 3120.47

b) Sundry debtor 3025.56 2168.65 1826.14 1657.06 1586.41

c) Cash & Bank balance 45862.28 39078.20 29695.01 20961.48 15929.27

d) Loans & Advances 9922.54 8676.20 11891.86 10304.29 8191.88

Total current assets 64396.02 54324.82 47095.89 36306.79 28828.03

Less: Current Liabilities &

Provisions

44872.53 41555.72 41153.15 29695.18 22820.97

(i) Net Current Asset 19523.49 12769.1

1

5942.74 6611.61 6007.06

Total of B 36524.75 29259.3

9

21315.42 21423.91 20275.61

(Rs. In Crores)


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Capital outlay38

2010-

11

2009-

10

2008-

09

2007-

08

2006-

07

Budget 3800 2900 3215 2472 3063

Actual 2540 2810 2507 2033 2060

% Utilization 67 97 78 82 67


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A few financial highlights39

2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 Sales (Gross) 60245.21 52187.79 46131.24 38865.70 35129.17 33997.19

Levies (Royalty, Cess etc. paid)

9923.27 7499.94 7200.02 6222.59 5525.78 5286.57

Gross Profit 16467.23 14101.39 5900.60 8888.39 8687.40 8879.36

Stock of Coal in terms ofno. of months sale

1.06 0.86 0.77 0.88 0.87 0.79

Stock of Stores & Sparesin terms of no. of monthsconsumption

2.36 2.62 2.58 2.46 2.58 2.81

Corporate Income Taxincluding Tax on Dividend

6494 5119.61 4214.76 4380.53 3314.09 3361.45

Dividend paid to Govt. ofIndia

2217 2210.00 1705.42 1705.42 1500.00 1263.27


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Cost analysis of CIL40


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Cost of production & Realization (2009-10)

41

Company Cost/M.T Sales /M.T. CIL761 1012

ECL 1740 1769

BCCL 1447 1645CCL 796 990NCL 606 1088 WCL 1117 1269

SECL 610 858MCL 374 609NEC 2131 --


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Cost of production & Realization (2010-11)

42

Company Cost/M.T(U/g, O/C) Sales /M.T.CIL 846 (3451,583) 1126ECL 1959(5886,783) 1940BCCL 1647 (6531,950) 1937CCL 845 (6712,684) 1073NCL 655 (0,655) 1133 WCL 1217(2461,907) 1368SECL 680 (2150,424) 940MCL 412 (2008,377) 741NEC 2385 (95000,1305) 3760


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Trend of Cost/MT Vis-a-Vis Net Sales realisation /MT43


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Cost of production & Realisation (2010-11)44

PARTICULARS U.G OPENCAST OVERALL

COST 3451 583 846SALES 2080 1030 1126


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U/G Margin & O/C Margin per MT45

Company U.G. O.C.

SP Cost Margin SP Cost Margin

CIL 1782 2885 -1103 927 528 399

ECL 3078 4518 -1440 1297 739 558BCCL 1804 5776 -3972 1619 762 857

CCL 1520 5240 -3720 973 653 320

NCL - - - 1088 606 482

WCL 1428 2117 -688 1227 855 372

SECL 1502 1843 -341 731 367 364

MCL 1083 1821 -738 599 343 256


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Wages per MT (2009-10)46

Company U/G O/C OverallCIL 1940 128 309ECL 3138 210 1010

BCCL 3916 270 786CCL 3868 230 342NCL - 112 112

WCL 1387 235 475SECL 1140 82 256MCL 1230 46 71


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Reserve of Coal as on 01.04.201147

Type ofCoal

Proved(bt)

Indicated (bt)

Inferred (bt)

Total(bt)

Coking

Coal

17 14 2 33

Non-Coking

97 124 32 253

Total 114 138 34 286

Reserve 59% within the depth of 300 m, 33% within the depthof 300-600m, 8% within the depth of 600-1200 m.


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48

COAL RESERVES IN INDIA(AS ON 01.04.2011)

IN BILLIONTONSSTATES PROVED TOTAL JHARKHAND 39.8 78.9

ORISSA 24.5 69.1CHHATISGARH 12.8 49.3 WEST BENGAL 11.8 29.9MADHYA PRADESH 8.9 23.1

ANDHRA PRADESH 9.3 22.1MAHARASHTRA 5.5 10.5OTHERS 1.4 2.9TOTAL 114.0 285.8

Departmental & Contract al prod ction both


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Departmental & Contractual production bothCoal & OB

49

Comp. OBR COAL

Dept. Cont. Total Dept. Cont. Total

CIL 408 275 683 300 131 431

ECL 34.1 15.6 49.7 25.7 4.3 30BCCL 34 28 62 19.8 7.7 27.5

CCL 45.2 10.8 56 47 - 47

NCL 103 75 178 67.6 - 67.6

WCL 67 65 132 45.7 - 45.7

SECL 74 56 130 85.3 22.7 108

MCL 49 18 67 9 95 104

NEC - 6.8 6.8 - 1.1 1.1


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51/88

Payment towards Contractual OBR51

458

1036

15401774

22912554

0

500

1000

15002000

2500

3000

2006-07 2007-08 2008-09 2009-10 2010-11 2012-13

Rs in Crore

Contractual OBR


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Coal India Ltd (consolidated)Financial Result for the year ending 2010-11

Particulars Year ending 31.03.2011 Year ending 31.03.2010

Net Sales 50234 44615

Emp. Remuneration 18211 16655

Stores 5231 4981

Power 1755 1740

Social OH 2229 1963

Contractual & Repair 5178 4389

Other expenses 2207 1755

OBR adjustment 2618 3054

Coal stock acre. (-) 1253 (-) 667

Interest & Fin. Charges 79 88

Depreciation 1673 1329

Provision 578 209 52


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Coal India Ltd (consolidated)Financial Result for the year ending 2010-11

Particulars Year ending31.03.2012

Year ending31.03.2011


Total expenditure 38506 35496

Profit from

operation

11728 9119

Other income 4735 4846

Profit before tax 16463 13965

Tax (-) 5596 (-) 4342

Profit after tax 10867 9623

E.P.S. 17.19 16.25

53


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Liabilities As on31.3.11

As on31.3.10

Assets As on31.3.11

As on31.3.10

Share Capital 6316 6316 Fixed Assets 12911 12035

Res. & Surplus 27001 19479 CWIP 2150 2091

Rehab fund 1651 1477 Investment 1937 2363

Loan 1553 2110 Inventories 5586 4402

Current Liab. 44873 41432 Sundry Debtors 3025 2169

Cash & Bank 45862 39077Loan &Advances

9923 8676

Total CurrentAssets

64396 54325

81394 70814 81394 70814

(Rs. in Crores)

54


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55

Cash

Store

WIPF.Goods

Debtor

Working Capital Cycle


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Liabilities As on31.3.11 As on31.3.10 Assets As on31.3.11 As on31.3.10Share Capital 6316 6316 Fixed Assets 12911 12035

Res. & Surplus 27001 19479 CWIP 2150 2091

Rehab fund 1651 1477 Investment 1937 2363Loan 1553 2110 Inventories 5586 4402

Current Liab. 44873 41432 Sundry Debtors 3025 2169

Cash & Bank 45862 39077Loan & Advances

9923 8676

Total Current Assets

64396 54325

81394 70814 81394 70814

(Rs. in Crores)56


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Contractual Coal Production & OB Removal in


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Contractual Coal Production & OB Removal inCIL (2009-10)

58

Company TotalCoal

Total OB Cont.Coal

Cont. OB

CIL 431 683 131 275

ECL 30 49.7 4.3 15.6

BCCL 27.5 62 7.7 28

CCL 47 56 - 10.8

NCL 67.6 177.9 - 75.1

WCL 45.7 132 - 65

SECL 108 130 22.7 56

MCL 104 66 95 18

coal india ltd (consolidated


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(Financial Result for the year ending 2010-11

Particulars Year ending31.03.2011


Total expenditure 38506 35496

Profit from operation 11728 9119

Other income 4735 4846

Profit before tax 16463 13965

Tax (-) 5596 (-) 4342

Profit after tax 10867 9623

E.P.S. 17.19 15.23

59


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Liabilities AssetsShare Capital 178.00 Fixed Assets 2204.00

Reserve &Surplus 7180.00 CWIP 204.00

Investment 74.00Loan 800.00 Current Asset 10473.00

CurrentLiabilities

4797.00

12955.00 12955.00

(Rs. in Crores)

60


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Liabilities Assets

Share Capital 2118.00 Fixed Assets 1226.00

Reserve &Surplus

-- CWIP 83.00

Loan 1423.00 Current Asset 2658.00

CurrentLiabilities

7948.00 P&L A/c 7522.00

11489.00 11489.00

(Rs. in Crores)

61


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Liabilities Assets

Share Capital 2218.00 Fixed Assets 1193.00

Reserve &Surplus

-- CWIP 65.00

Loan 666.00 Current Asset 2328.00

CurrentLiabilities

8936.00 P&L A/c 8234.00

11820.00 11820.00

(Rs. in Crores)

62


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EMPLOYEES WELFARE (AS ON 31.3.11)63

ITEMS NOS.

HOUSES 421557(SATISFACTION : 100%)

WATER SUPPLY (POPULATIONCOVERED)

22.95 LAKHS

EDUCATIONAL PRIVATE INSTITUIONSIN & AROUND COALFIELDS (WITH AID/ INFRASTRUCTURAL FACILITIES)

590

MEDICAL FACILITIES :(A)AMBULANCES 667

(B) HOSPITALS 85(C) HOSPITAL BEDS 5835(D) DISPENSARIES 424(E) AYURVEDIC DISPENSARIES 12

SOURCE : AR

Electricity generation % source wise (India vs


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Electricity generation % source wise (India vs.global)

64

Source India GlobalCoal & Lignite 67 41Nuclear 2 15Gas 9 20Hydel 16 16Oil - 6Others 6 2Total 100 100


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Strategic Performance of Coal Sector65

Refocus on underground mining .Major producer of coal sector M/s CIL has strategy toincrease UG production by opening high capacity machanisedmines through state of art technology such as Continuousminers, Powered support longwall, High wall mining.UG production persistently on the decline

Planperiod

T. year UG Prod. Total Prod

VIII 96-97 55 250

IX 01-02 49 280X 06-07 43 361

XI 11-12 43 486


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Continued. 66

CIL cant continue to persue the softer option ofmining coal through the open cast mines .Producing through OC Mines is not sustainable say30 years we have to depend on UG production by

that time UG skill may be lost and it may prove to be very costly. We cant ignore deep seated reserve. The only reason UG cost of production is very high3114 per mt. compare to 536 per mt. for OC mines.Total 813/mt. The wages cost of Rs. 2223 for UG istaken as fixed cost to CIL cost is not that high.UGrealisation 1514/mt. and OC- 857.


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Continued.. 67

CIL has underlined the importance of laying trace on UGproduction of coal reserve below 300 meters.Globally 60% of the coal production is from UG mines, ofthat 50% from PSLW and 45% from Continuous miner.Now as per the global trend CIL is adopting mass productiontechnology and laser no. of blasted mines.CIL has identified 7 high capacity underground mines fordevelopment on long term turnkey contract basis, for whichGlobal Expression of Interest has been issued Muridih 2

MT, Munidi & Madhuban 1.5 MT each, Murpar Exp &Borda WCL 2 MT each,.Continuous miners deployment are going to be increased Jhanjra (2 nd set), Sarpi (initial), Tandsi, Kumbarkhani, WCL,Sitaldhara & Kurja, Vindhya, SECL


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Future Strategies of CIL for energy security68

Coal Bed Methane (C.B.M.)Coal Gasification

Coal to OilConsultancy Services to OutsidersClean Development Mechanism(CDM) & CarbonCredit.Forward and Backward Integration


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Developing Abandoned Mines69

CIL has identified 18 abandoned mineshaving reserve $1.6billion mt. , which has been

abandoned in past having good qualitycooking /non cooking coal for reason like water

, fire, poor economy due to obsolete technologyetc.Joint venture arrangement has been pursued

with the association of internationally

reputed global UG mining companies .10 companies has been short listed movingon fast track.


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Coal Bed Methane70

CBM recovery and commercial utilizationdemonstration project has been successfullyimplemented at Moonidih, BCCL,.Taken up by Govt. of India in collaboration withUNDP and GEF.Presently as a S&T project under implementation byCMPDIL & BCCL for the balance work.

The project is a path finder for coal mine methanedevelopment in Indian mining scenario.

l d h ( )


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Coal Bed Methane (cont) 71

Recovered gas is supplied to generating set forpower generation and power is supplied toMoonidih colony.Collaborative development of CBM project in

Jharia & Raniganj by the consortium of CIL andONGC.Participative interest of CIL 10 to 26%.CIL R&D Project through CMPDIL for study and

assessment of CMM & VAM potential of large O/Cand U/G mines for commercial development.Establishment of CBM & CMM clearance house.

G C l G ifi i


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U/G Coal Gassification72

CMPDIL has been entrusted for identification suitablecoal/lignite block for UCG in consultation with GSI,SCCL & NLC.7 block (5 lignite & 2 coal) has been identified.

2 coal block in CIL command area has also identified.CIL-ONGC collaborative project in Kasta block additional data under examination for taking up pilotproject.

Expression of interest for commercial development ofUCG in 2 block Koitha, Ramgarh coalfields, CCL andThesgora C block in Pench and Kanhan,m, WCL

U/G C l G ifi i ( )


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U/G Coal Gassification (cont) 73

Tender document for award of the work is underformulation.Surface coal gassification joint development ofsurface coal gassification with Gas Authority ofIndia for the fertilizer industry in Talcher FCIL Ammonium Nitrate GAIL, CIL and RCFL wouldform consortium for SCG for revival of RCFL.

C l B fi i i


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Coal Beneficiation74

Size provide no protection. Competitive advantage comes fromcost leadership / differentiation for a product like coal where scope for differentiation is limited , but as per global practice coal needs to

supplied to the consumer as desired .The quality should be consistent .Presently CIL have 17 washeries 11cooking coal and 7 non cooking coal havingtotal capacity 39.4 mt.( less than 10% ofCIL production ).SECL , MCL, ECL,NCL do not have any washeries

PSF cost (in Million) for 250 mw power plant at


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different level of washing with respect to distance .75

Impact of Washing on cost of


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p gEnergy(Paisa/KWH )

76


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77

Overall economics for CIL (the largest coal producingcompany of the world) on coal washing. Average ash content of Indian coal 35-42%Calorific Value of Indian coal 4000 k.cal/kgOn washing ash content is reduced by 7-8%

Calorific value is increased to 5000 k.cal/kg When compared with cheapest imported (Indonesian) coalthe economics will be

A. Avg. pit head price of Indian coal 21.0 $B. Wastage due to washing (say 20%) 4.0 $

C. Washing cost (capital+opearating) 6.0 $D. Notional cost for Washed coal 31.0$E. Landed cost at PIT head from Indonesia 45.0$

Ch ll ft IPO


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Challenges after IPO78

The key challenges a company typically face in the postIPO period are :-Meeting the expectation of millions of investor includingoverseas investor IPO process create excitement about thecompany in the media and among investors, but over the

time that will fade unless you maintain the marketexpectation. Valuation of the company remains under constant watchDelivery according to the promisesManaging the pace of growthDefine the key verticals that will drive the businessforwardObservance of Corporate Governance norm as per listingagreement with SEBI Clause 49.

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Financial accounting and reporting system.Submission of quarterly financial report.Cultivating relationship with the key analyst

helping them to understand your business Adopting global based practices.Strategies for meeting the corporate vision.

Growth in EPS (Earning per share)More concern to corporate image Riversdal& RIL

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As per study, institutional investors putimportance in the following performancemeasures:-Financial measures

EPS growthROISales growth

Gross marginDebt to equityCash & investment in hand

Ch llenges fter IPO


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Non-Financial measures

Management credibility and experienceQuality of corporate strategies and timelyexecution of corporate strategies.

Brand strengthCorporate Governance practice Ability to retain talented people

Market share and geographical spreadIndustrial Relation atmosphereCustomer satisfaction

IMPACT ON THE INDIAN


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IMPACT ON THE INDIANECONOMY82

OPTIMAL USE OF NATURAL RESOURCESRELEASE OF RAILWAY CAPACITY ANDENERGY SAVING

HELP INDIA TO MEET ITS CARBONINTENSITY GOALREDUCE THE POWER COST DUE TO USE OFCONSISTANT QUALITY OF WASHED COAL

BY WASHING LVHR COAL PRESENTLY USEDFOR POWER GENERATION CAN REDUCEIMPORT THUS SAVINGS IN PRECIOUSFOREIGN EXCHANGE .

IN THE PSF STUDY LEVEL III WASHING HAS COST


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IN THE PSF STUDY LEVEL III WASHING HAS COSTADVANTAGE IF DISTANCE IS 1000KM AND MORE. LEVEL IIWASHING HAS COST ADVANTAGE AROUND 500KM.LEVEL I HASCOST ADVANTAGE UPTO 200KM.

IN FUTURE COST OF WASHING PER METRIC TONN WILLCOME DOWN DUE TO ECONOMIES OF SCALE, BETTERTECHNOLOGY, MARKET DEPTH.

FOR BETTER ECONOMICS CONSISTENT QUALITY , QUANTITYOF FEED IS VERY IMPORTANT.

COAL PRODUCERS ARE BETTER PLACED FOR PIT HEADWASHERIES, IN OTHER CASE FOR BETTER ECONOMICSCONSTANT SUPPORT AND SHARING OF COMMON FAVILITIES

ARE IMPORTANT.

PIT HEAD POWER PLANT WITH ROM COAL HAS LEAST COSTOF ENERGY.BUT WASHED COAL WITH UTILIZATION OFWASHERY REJECT IN FBC AT PIT HEAD COULD BEECONOMICALLY VIABLE.

Coal Vision 2020


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Coal Vision 202084

The corporate planning document of CIL toconsolidate its role as prime energy provider of thecountry and sustain it in the long run.KPMG has identified six key areas that will supportCIL in realize its vision managing scale of growth,improving operational efficiency, improvingcustomer orientation, expanding presence acrosscoal value chain, becoming employer of choice,focusing on environment and community throughsustainable initiative.

B P i


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Best Practices85

In 1980 Richard Lister and other researcher at theMIT identified seven areas of best practices:Continuous improvement through innovation.Braking down organizational barrier between departments.

Eliminating layer of management for creating flatterorganization.Closer relationship with customer and supplier.Intelligent use of new technology.

Global focus.Improving human resources.


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Global practices in coal mining86

Preserving top soil for spreading on reclamation/restoration of opencast mining.No inspection after receiving of the material.Long term contract with the vendor/ service providerfor critical spares/ assemblies.

Zero blasting in the underground mine.Beneficiation of every piece of coal before supplying tocustomer.Nurturing human capital as a most important agenda.Cost reporting to Total Cost Management practice.GPS based fleet management system.Standardization of equipment.Inventory management just in time.

CARBON ECONOMICS


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Economy

Envt. Social

S.Dev.


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New HorizonThanks

performance & cil overview 2013

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