History
History and Formation of Coal India Limited
With dawn of the Indian independence a greater need for coal production was felt in the First Five
Year Plan. In 1951 the Working Party for the coal Industry was set up which included representatives
of coal industry, labour unions and government which suggested the amalgamation of small and
fragmented producing units. Thus the idea for a nationalized unified coal sector was born.
Integrated overall planning in coal mining is a post-independence phenomenon. National Coal
Development Corporation was formed with 11 collieries with the task of exploring new coalfields and
expediting development of new coal mines.
Factors which led up to Nationalization of Coal Industry in
India
Nationalization of coal industry in India in the early seventies was a fall out of two related
events. In the first instance it was the oil price shock, which led the country to take up a close
scrutiny of its energy options. A Fuel Policy Committee set up for this purpose identified coal as
the primary source of commercial energy. Secondly, the much needed investment needed for growth of
this sector was not forthcoming with coal mining largely in the hands of private sector. The
objectives of Nationalization as conceived by late Mohan Kumaramangalam were; Conservation of the
scarce coal resource, particularly coking coal, of the country by
- Halting wasteful, selective and slaughter mining.
- Planned development of available coal resources.
- Improvement in safety standards.
- Ensuring adequate investment for optimal utilization consistent with growth needs.
- Improving the quality of life of the work force.
Moreover the coal mining which hitherto was with private miners suffered with their lack of interest
in scientific methods, unhealthy mining practices etc. The living conditions of miners under private
owners were sub-standard.
Formation of Coal India Limited
With the Government's national energy policy the near total national control of coal mines in India
took place in two stages in 1970s. The Coking Coal Mines (Emergency Provisions) Act 1971 was
promulgated by Government on 16 October 1971 under which except the captive mines of IISCO, TISCO,
and DVC, the Government of India took over the management of all 226 coking coal mines and
nationalised them on 1 May, 1972. Bharat Coking Coal Limited was thus born. Further by promulgation
of Coal Mines (Taking over of Management) Ordinance 1973 on 31 January 1973 the Central Government
took over the management of all 711 non-coking coal mines. In the next phase of nationalization
these mines were nationalized with effect from 1 May 1973 and a public sector company named Coal
Mines Authority Limited (CMAL) was formed to manage these non coking mines.
A formal holding company in the form of Coal India Limited was formed in November 1975 to
manage both the companies.
Major Events and Milestones :
2019-20 |
- Coal Production: Coal India Limited produced 602.13 Million Tonnes (MTs) of coal, CIL breached the 600mt mark for the second year consecutively.
- In the month of March' 20, CIL produced 84.36 MT, the highest so far in a month since the inception of the company.
- Coal stock at power houses was its highest in a decade at 45 .01 Mts (28 days) as on 31.3.2020.
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2018-19 |
- Coal India Limited for the first time, had breached the 600 Million Tonne (MT) mark in coal production and off-take ending FY 2019 by producing 606.89 MTs of coal and supplying 608.14 MTs, clocking growths of 6.97% and 4.8% over previous year respectively.
- Coal India Limited aligned itself as corporate partner of International Solar Alliance (ISA), through a contribution of 1 Million US $, a little over Rs. 6.75 Crores, to ISA’s corpus fund.
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2017-18 |
WEB Based Online Monitoring System
- Monitoring of 69 coal-mining project costing more than Rs.150 Crores with Project monitoring software MS Project have been started in Coal India Limited during the year 2016-17.
- CIL in association with CMPDI recently launched a portal MDMS (Mine Data Base Management System) to monitor the ongoing projects costing Rs. 20 Crores and above in CIL.
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2016-17 |
- Coal India has been accredited with IS/ISO 9001:2015 (Quality Management System) and IS/ ISO 50001:2011 (Energy Management System) certification on 27th October 2016.
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2015-16 |
- For the first time, Coal India’s production and off-take have exceeded Half-a-Billion Tonne mark.
- During FY 2016 Coal India as a whole recorded coal production of 538.75 Million Tonnes (MTs).
- Registering nearly 44.51 MTs increase in coal production during FY 2016- the highest ever incremental increase in a single financial year since the inception of the Company.
- Coal India for the first time had surpassed the magical figure of Rs. 1 Lakh Crores in Gross Sales recording Gross Sales of Rs. 1,08,150.03 Crores during 2015-16.
- Coal India continued to be one of the highest contributors to the government ex-chequer in the country- federal and state governments. Coal India paid a corporate tax of Rs. 7,012.35 Crores to Government of India in FY 2016.
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2014-15 |
- ECL came out of BIFR, BCCL was awarded Mini Ratna status.
- Coal India is one of the highest contributors to the government ex-chequer in the country both- federal and state governments. Coal India paid a corporate tax of Rs. 9,572.05 crores to Government of India in 2014-15, one of the highest cash payouts among the Indian corporate sector.
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2013-14 |
- In 2013-14 CIL was hailed in the media as ‘the jewel in the government’s PSU Crown’, a cash rich company that ‘comes to government rescue and ‘Coal India’s special dividend payout to boost Govt coffers’. This was stated in the context of CIL declaring the highest interim dividend for 2013-14.
|
2012-13 |
- Coal India Limited was named ‘Platts Top 250 Global Energy Company Rankings’ for 2012 for having distinguished itself through its remarkable performance last year. Since, 2002 platts has ranked energy companies ‘financial performance globally, regionally and by industry sector. For 2012 CIL’s rank was 48 on overall global performance.
- CIL ranked No.2 in Coal and Consumable Fuels in Asia/Pacific Rim; also No.2 in Coal and Consumable Fuel globally and No. 11 in overall performance in Asia/Pacific Rim.
- Coal India Limited was conferred with ‘Best Geospatial Application in an Enterprise’ Award, on 22 January 2013 by Geospatial Media and Communications Pvt. Ltd.
|
2011-12 |
- Maharatna Status
Coal India Limited was granted the 'Maharatna' status on 11 April,
2011 by the Government of India thus becoming only the 5th PSU in the
country, of a total of 215 Central Public Sector Enterprises (CPSEs), to
have been conferred with this status. Government of India has introduced the
Maharatna scheme in February 2010 for Central Public Sector
Enterprises, in order to empower the mega CPSEs to expand their operations
and emerge as global giants. So far, the select club has only five members.
The objective of Maharatna is to delegate enhanced powers to the
Boards of the identified large Navratna CPSEs, fulfilling the
specified criteria, to facilitate expansion of their operations both in
domestic as well as global markets.
- Coal India joins SENSEX
Coal India made it to the 30-stock Sensex, on 8 August 2011, globally
considered to be the barometer of the Indian economy, in short span of nine
months since its listing on 4 November 2010. No other company has made it to
the index in such a short time. And then Coal India's raise to the top came
in just seven trading sessions since its entry to SENSEX. This is considered
to be a remarkable accomplishment.
- Most Valued Company in the country
On 17 August 2011, Coal India emerged as the Most Valued Company in the
country in terms of Market Capitalization - the pinnacle of success every
business entity dreams of and aspires for. The company's value stood at a
whopping Rs.2,51,296 Crores. What made the achievement all the more
significant was that a public sector company could attain such lofty
heights.
- CMPDI in a gas recovery project
Central Mine Planning and Design Institute (CMPDI) the Ranchi based mine
consultancy subsidiary of Coal India Limited has been identified for
participation in a Green House Gas recovery from coal mines and un-mineable
coal beds and conversion to energy (GHG2E) - an EU funded Research Project
from India along with Indian Institute of Technology, Kharagpur.
The basic objective of the project is to contribute to global greenhouse gas
reduction by controlling methane emission from coal mines and maximizing
utilization of produced methane. Moonidih and Sudamdih mines of BCCL have
been considered for taking up this research project. The total time schedule
for the project is 42 months. Officials from CMPDI participated in the
kick-off meeting held in Slovakia from 6th - 9th Oct.'11. A team comprising
of Prof. Sevket Durucan of Imperial College of Engineering, London and Prof.
K.Pathak of IIT, Kharagpur and other representatives of both the
institutions visited CMPDI on 16th Nov 2011 and the matter was discussed in
details regarding the implementation of the project. The team along with
CMPDI officials also visited Moonidih mine and BCCL for detailed
discussions. CMPDI has received an advance payment of EURO 47,867.35 for the
Project.
- Finalizes National Coal Wage Agreement IX in record
time
Coal India Limited (CIL) on 31 January 2012, finalized the wage agreement
for its 3.63 Lakh strong non-executive work force by giving a 25% increase
on gross wages as of 30 June 2011. The wage hike that would be effective
retrospectively from 1 July 2011 is for a five-year period. With the
conclusion of the wage negotiation, Coal India for the second time becomes
the first Central Public Sector Undertaking in the country to successfully
finalize the wage pact. The NCWA IX was concluded in a record time of only 6
months since the formation of JBCCI in August 2011. Never in the history of
CIL was a wage agreement concluded so swiftly.
|
2010-11 |
- Coal India Limited signed a Memorandum of Understanding (MoU) Ministry of
Coal on 31st March, 2011 - for its key performance areas for the fiscal
2011-12. As per the MoU for the fiscal 2011-12, CIL's targeted production
and coal off-take have been fixed at 452.00 Million Tonnes (MTs) and 454.00
MTs respectively for attaining an 'Excellent' rating. Incidentally for
previous three fiscal years i.e 2007-08, 2008-09 & 2009-10 CIL was rated
'Excellent'.
Under the present MoU for 2011-12 special emphasis on Research &
Development, Corporate Social Responsibility, Sustainable development &
Corporate Governance have been made as major thrust areas. To attain the
targeted off-take, CIL has sought 175 rakes/day for 2011-12 as against the
average availability of 156.8 rakes/day & 161.9 rakes/day during previous
and current fiscal years . Average growth of coal movement through Rail is only
around 2 % during the last 3 years whereas CIL has envisaged a growth of around
13.5 % through rail for achieving above target.
Since last year (2010-11) expenditure on CIL R&D activities has taken a
quantum jump from 2009-10 level of around Rs 15 Crores annually to Rs.30 crores.
CIL has also stepped up its target for expenditure on CSR activities in line
with DPE's guideline.
- Coal India Limited bagged a prestigious first ever international award in
Geneva on 7 March 2011. CIL was conferred with the "Century
International Quality ERA Award (CQE)" in the Gold Category in
recognition of commitment to Quality, Leadership, Technology and Innovation.
It was stated that Coal India represents success for India in the Business
world. The awards were given by Business Initiative Directions (BID) - a
leading private organization focused on the Quality Mix Plan.
- Coal India Limited signed a Memorandum of Understanding with The Shipping
Corporation of India Limited in December 2010 for promoting a Joint Venture
Company (JVC) In order to create comprehensive end-to-end logistic solution
from load port to consuming end. Currently imported coal is supplied by both
private and PSU players at consuming ends, particularly to power stations,
with comprehensive quality and quantity assurance, whereas, in case of
indigenous coal, CIL's term of sale is Free on Rail at Colliery
Primary objective of the JVC are
- Owning/chartering of vessels
- Draft surveying
- Inspection of cargo
- Stevedoring at unloading port in India including unloading of
vessels, customs clearance, shore clearance, and stacking
- Indenting wagons from railways, loading of wagons, quality analysis
and delivery of coal at power stations
- 4th November was CIL share was listed at Rs.291/- and closed over Rs.342/-
on the first day of trading. Most importantly, a national asset was offered
to public as 'peoples' ownership' in PSUs.
- 21 October 2010, the day CIL's IPO closed, would be etched as a historic
event in the annals of Coal India Limited. The day unraveled the value and
the true potential of CIL. Innumerable road shows involving count less man
hours of effort across the country and in US, Europe markets had resulted in
the grand success of CIL's IPO.
CIL's IPO the largest so far in Indian capital market was over-subscribed
15.3 times. The resounding success of record shattering result of the
company's public offer with the aggregate funds flowing amounted to
Rs.2,35,276.55 crores which was so far unheard of in the Indian capital
market. The over-subscription of the issue happened in all the three major
segments i.e. Qualified Institutional Buyers (QIB), High Networth
Individuals (HNI) and retail. The QIB for which there was a reservation to
the extent of 50% of the net issue of the shares, the over-subscription was
as much as 24.62 times. Around 784 QIB investors had put in over US dollar
38 billion i.e. Rs.1,71,469.64 crores which by itself is also an all time
high in the history of Indian IPO. In the retail segment nearly 16.36 lakhs
applications were received - the highest among all PSU IPOs so far amounting
to Rs.63,639.26 Crores. This is also the highest so far in the Indian
capital market. Interestingly, the foreign investors alone had put in around
US $ 27 Billion which is equal to first ten months of FII investment in
India this year.
- CRISIL the leading credit rating agency in the country has assigned maximum
grading of 5 to CIL's proposed IPO - the best for any public sector. The
grading indicates that the fundamentals of the IPO are strong compared other
listed securities in the country.
|
2009-10 |
Award of the Scope Excellence Award to our Company by the Standing Conference of
Public Enterprises for the year 2007-08.
Establishment of Coal India Africana Limitada, a foreign subsidiary in
Mozambique;
Conversion of our Company into a public limited company.
Award of 'Mini Ratna' status by the Department of Public Enterprises, GoI, to
CMPDIL.
Receipt by our Company of a composite score of 1.47 and rating as "excellent" for
the year 2007-2008 by Department of Public Enterprises, Ministry of Heavy Industries
& Public Enterprises, GoI. |
2008-09 |
Award of 'Navratna' status to our Company by the Department of Public Enterprises,
GoI, for our operational efficiency and financial strength, which affords greater
operational freedom and autonomy in decision making.
Overall production of coal by our Company and our Subsidiaries, crossed 400 million
tonnes. |
2007-08 |
Award of 'Mini Ratna' status by the Department of Public Enterprises, GoI, to CCL.
|
2006-07 |
Award of 'Mini Ratna' status by the Department of Public Enterprises, GoI, to our
Company and to MCL, NCL, SECL and WCL.
Decline in debt as a percentage of net worth from 66 % in 2001-2002 to 10 % in 2006
-2007. |
2005-06 |
Rating of 'AAA/Stable', indicating highest degree of safety with regard to timely
payment of interest and principal, awarded by CRISIL in respect of the Rs. 250
million bond programme of our Company.
Introduction of sale of coal through 'e-auction method';
ECL and BCCL reported profit of Rs. 3,638 million and 2,026.67 million in Fiscal
2006. |
2003-04 |
Overall production of coal by our Company and our Subsidiaries crosses 300 million
tonnes. |
2001-02 |
Laying down of a minimum internal rate of return of 12% at 85% capacity utilization
as cut off for the development of a project. |
1997-98 |
Corporatization of the financial flow between our Company and Subsidiaries, such
that our Company is to receive only dividends under applicable policy from our
Subsidiaries and the corpus of our Company was to be utilized to provide strategic
support to a loss making entity only for, inter alia, maintaining their productive
capital assets.
Sanction of loan of USD 1.03 billion from the World Bank and the Japanese Bank for
International Co-operation for implementing 24 highly viable open case projects with
global sourcing of equipments, of which USD 484.40 million was availed during the
period between Fiscal 1998 to Fiscal 2004. |
1996-97 |
Rating of 'A+', indicating adequate safety with regard to timely payment of interest
and principal, awarded by CRISIL in respect of the Rs. 4,000 million bond issue by
our Company.
Adoption of financial viability as the basis for approval of coal development
projects.
Discontinuation of retention prices scheme and the Coal Price Regulation Account
(CPRA), with the deregulation in prices of certain grades of coal. |
1995-96 |
Approval of a financial restructuring package by the Government, whereby Rs. 8,917
million of interest liability was waived, Rs. 9,041.8 million of plan loan repayment
arrears was converted to preference equity and Rs. 4,326.4 million of non plan
payment arrears were allowed a moratorium for repayment and interest accrual for a
period of three years, to be repaid in three equal instalments.
A profit of Rs. 6,116 million in Fiscal 1996 was earned by our Company. |
1992-93 |
Formation of MCL as our Subsidiary to manage mines Talcher and IB valley in the
state of Orissa. |
1991-92 |
Uptrend of profit started in 1991 and our Company earned a profit of Rs. 1,670
million in Fiscal 1992.
Overall production of coal by our Company and our Subsidiaries crossed 200 million
tonnes.
Fixing of coal prices once a year to compensate for increase in price of inputs on a
normative cost basis, and adoption of the escalation formula prescribed by the
Bureau of Industrial Cost and Prices ("BICP"). |
1987-88 |
'Blasting Gallery Method' introduced at East Katras mine under BCCL and Chora mine
under ECL. |
1985-86 |
Formation of NCL and SECL as Subsidiaries of our Company, to manage certain mines
managed by WCL and CCL. |
1981-82 |
Introduction of retention prices of coal by amending the Colliery Control Order,
1945 by notification dated March 31, 1982, in respect of our Subsidiaries. |
1980-81 |
Construction of five new washeries: Moonidih washery, Ramgarh
washery, Mohuda washery, Barora washery, Kedla washery.
Overall production of coal by our Company and our Subsidiaries crossed 100 million
tonnes. |
1979-80 |
Construction of the low temperature carbonized plant started in Dankuni Coal
Complex.
The pricing policy of CMPDIL was reviewed to ensure that the company was working on
a commercial line instead of working on "no profit no loss" basis. |
1975-76 |
Change of name of our Company to 'Coal India Limited'.
Incorporation of CMPDIL, ECL and WCL, and formation of BCCL, CCL, CMPDIL, ECL and
WCL, as our Subsidiaries. |
1973-74 |
Nationalization of coal mines, in order to provide for a higher growth in coal
sector to meet the growing energy needs of the country.
Incorporation of our Company as 'Coal Mines Authority Limited'. |
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