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GOVERNMENT OF INDIA MINISTRY OF MINES ANNUAL REPORT 2000-2001

Transcript of ANNUAL REPORT - Minesmines.gov.in/writereaddata/UploadFile/aneng-2001.pdf · 3.4 Hindustan Zinc...

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GOVERNMENT OF INDIAMINISTRY OF MINES

ANNUAL REPORT2000-2001

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MINISTRY OF MINESWeb Site Address: www.nic.in/mines

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CONTENTS

CHAPTER NO. SUBJECT PAGE NO.

Chapter I Highlights of 2000-2001 5

Chapter II Role and Organisation of Ministry of Mines 9

Chapter III Survey and Exploration

(A) Geological Survey of India 12

(B) Mineral Exploration Corporation Limited 20

Chapter IV Regulation and ConservationIndian Bureau of Mines 29

Chapter V Overview of Aluminium, Zinc, Lead and Copper 38

Chapter VI Mining and Processing

(A) National Aluminium Company Limited 43

(B) Bharat Aluminium Company Limited 52

(C) Hindustan Zinc Limited 57

(D) Hindustan Copper Limited 64

(E) Bharat Gold Mines Limited 71

(F) Sikkim Mining Corporation 75

Chapter VII Science and Technology Programme 78

Chapter VIII International Cooperation 83

Chapter IX Progressive Use of Hindi 87

Chapter X Welfare Measures 89

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MINERAL LAW AND POLICY

1.1 The process of achieving the objectives ofthe National Mineral Policy, 1993 was continuedduring the year. Mines and Minerals (Development& Regulation) Act, 1957 was amended andnotified on 20.12.99, which delegates morepowers to the State Governments. Consequentialamendments in Mineral Concession Rules (MCR),1960 and Mineral Conservation and DevelopmentRules (MCDR), 1988 were notified in the Gazetteof India on 18.1.2000. Further amendments inMCR, 1960 and MCDR 1988 declaring 29 non-metallic and industrial minerals for which powersof approving mining plan (for open cast mines)have been given to State Governments andguidelines for calculating royalty on minerals, etc.were notified on 25.9.2000.

1.2 The steps taken to liberalise the miningsector following the National Mineral Policy, 1993were continued to consolidate the ongoingprocess. Amendment in the MMDR Act 1957introduced the concept of reconnaissanceoperations as a stage distinct from and prior toactual prospecting operations. This has madeinvestments in the state-of-the-art technologiesin mineral explorations more attractive. The policychanges have attracted many multinationalcompanies for investment in exploration of base-metals, noble metals and other scarce minerals.Reconnaissance permits in 42 cases involving anarea of about 53,000 sq km. have been approvedupto February, 2001.

1.3 Revised rates of royalty for major minerals(other than coal, lignite and sand for stowing)

CHAPTER I

HIGHLIGHTS OF 2000-2001

have been notified in the Gazette of India on12.9.2000.

1.4 The second meeting of the reconstitutedMineral Advisory Council was held on 30.8.2000to discuss various issues regarding mineral policyand legislation, exploration of minerals in landand off-shore areas, production and internaldistribution of minerals, human resourcedevelopment in the minerals sector, export/importof minerals, fiscal issues etc. Follow-up action onthe recommendations made in the meeting ofMineral Advisory Council is in progress.

1.5 A Multi-Disciplinary Committee appointedfor suggesting an appropriate tax structureconducive to rapid development of minerals andmineral based industries in the country hassubmitted its recommendations to the Ministry ofMines. The acceptance of these recommendationshas been conveyed to Ministry of Finance forfurther action at their end.

1.6 An Expert Committee constituted under theChairmanship of Principal Secretary, Industries &Commerce Department of the State Governmentof Andhra Pradesh had earlier suggested upwardceilings of royalty rates and dead rent for Granite.State Governments were requested to incorporatethe same in their respective Minor MineralConcession Rules (MMCRs). The said Committeehad also recommended some structural changesin the taxation regime for the granite sector.Granite Development Council constituted by theMinistry is examining these recommendations.

1.7 To fulfil a felt need of the marble industry,the Ministry of Mines has constituted a Group on

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Marble Development is September, 1999 with aview to look into the various problems related tomining, value addition and exports, etc. of marbleand suggest appropriate measures to overcomebottlenecks affecting this industry. This Group isworking under the overall guidance and supervisionof the Granite Development Council. Deliberationspertaining to Marble industry are in progress inthe Group.

MINERAL DEVELOPMENT

2.1 The index of mineral production (base1993-94=100) for the year 2000-2001 isestimated to be 130.03 as compared to 126.79for 1999-2000, showing a positive growth of2.5 per cent. The total value of mineral production(excluding atomic minerals) during 2000-2001 isestimated to be Rs. 55,042 crore, which showsan increase of 22 per cent over that of theprevious year. During 2000-2001, fuel mineralshave accounted for Rs. 46,844 crore or 85 percent, metallic minerals, Rs. 3,608 crore or 7 percent and non-metallic minerals (including minorminerals) Rs. 4,590 crore or 8 per cent of thetotal value. Data on production of selectedminerals from 1996-97 to 2000-2001 is appendedas Annex-I.

2.2 The value of export of ores and mineralsduring 1998-99 was Rs. 24,622 crore. Diamond(mostly cut) was the principal item of the exportduring 1998-99 which accounted for 81 per centfollowed by iron ore with a contribution of 7 percent, granite 4 per cent and precious and semi-precious stones 3 per cent. Chromite, Aluminaand emerald were the other important mineralsexported during the year 1998-99. Data on exportof ores and minerals during 1994-95 to 1998-99is presented at Annex-II.

2.3 The value of import of ores and mineralsduring 1998-99 was Rs. 37,349 crore. Diamond(uncut) was the main constituent of mineralimports during 1998-99, which accounted for 42per cent of the total value of import of ores andminerals followed by petroleum (crude) with 40per cent. Coal, rock phosphate and copper ores

& concentrates were the other important mineralsimported during 1998-99. Data on import of oresand minerals during 1994-95 to 1998-99 ispresented at Annex-III.

PUBLIC SECTOR UNDERTAKINGS

3.1 In conformity with Government policy tobalance the autonomy of PSUs commensuratewith accountability and to set mutually acceptabletargets, Memoranda of Understanding (MOU) weresigned for 2000-2001 with National AluminiumCompany Limited (NALCO), Bharat AluminiumCompany Limited (BALCO), Hindustan Zinc Limited(HZL), Hindustan Copper Limited (HCL) and MineralExploration Corporation Limited (MECL). Greaterautonomy is expected to result in quicker decisionmaking, enhancing efficiency and increasingproductivity of the MOU signing PSUs.

3.2 National Aluminium Company Limited(NALCO) had a turnover of Rs. 2142.32 croreand a net profit of Rs. 681.00 crore (PBT) during1999-2000. Implementation of the project forexpansion of capacity of NALCO�s AluminiumSmelter from 2,30,000 tpa to 3,45,000 tpa isrunning on schedule. Expansion of NALCO�sCaptive Power Plant at Angul from 720 MW to840 MW is likely to be completed by August,2002. The project for expansion of bauxite minesfrom 2.4 million tpa to 4.8 million tpa and ofAlumina Refinery from 0.8 million tpa to 1.575million tpa, both at Damanjodi, is also progressingas per schedule.

3.3 Bharat Aluminium Company Limited(BALCO) had a sales turnover of Rs. 896.64 croreand earned a profit of Rs. 116.19 crore (PBT) in1999-2000. The project for setting up of newCold Rolling Mill is under implementation by theCompany and is expected to be commissionedby June, 2001.

3.4 Hindustan Zinc Limited (HZL) had a salesturnover of Rs. 1515.15 crore and earned a profitof Rs. 182 crore (PBT) during 1999-2000. TheGovernment has approved setting up of a1,00,000 tpa greenfield Zinc Smelter plant by

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HZL at Kapasan, Chittorgarh Distt. Rajasthan atan estimated cost of Rs. 1203.75 crore. Theplant is expected to be completed in 48 monthsfrom the date of completion of the disinvestmentprocess of HZL. The Company has been authorisedto incur an expenditure of Rs. 9.97 crore during2000-2001 for acquisition of land, etc. The restof the expenditure will be incurred after completionof disinvestment process of HZL. The project willbe funded by internal resources of the Companyand the borrowings. Despite declining trend ofLME prices in lead and zinc, HZL achieved a salesturnover and profit before tax during the periodApril-December, 2000 of Rs. 1183.65 crore andRs. 201.00 crore respectively.

DISINVESTMENT

4.1 The Government decision regardingdisinvestment of 51 per cent equity of BALCO toa strategic partner has been implemented. TheGovt. received Rs. 551.5 crore from thetransaction. In case of HZL the decision todisinvest 26 per cent of HZL�s equity to a strategicpartner with an appropriate role in managementis also under implementation. In Phase I of theproposed disinvestment in HCL, the Khetri unit ofHCL along with Taloja Plant will form a separateCompany. The assets of the unit are being valued,which will constitute 49 per cent contributionfrom HCL in a new Company. The remainingequity in the new Company will be from a strategicpartner. Process of disinvestment is under progressin HCL.

INTERNATIONAL CO-OPERATION

5.1 During the year 2000-2001 the ForeignInvestment Promotion Board approved 7 proposalsinvolving Foreign Direct Investment to the tuneof Rs. 230 crore.

5.2 The first meeting of the India-Australia JointWorking Group on Energy and Minerals was heldin Sydney, Australia on 10.4.2000. This JointWorking Group was set up in pursuance of thedecision of the sixth meeting of the India-AustraliaJoint Ministerial Commission held in February,

1999. The meeting of the Joint Working Groupadopted Terms of Reference for future work andenabled both sides to develop a betterunderstanding of each other�s energy and mineralsupply and demand situation and future policies.

5.3 The 14th meeting of the Indo-FrenchWorking Group on Mineral Exploration andDevelopment was held at Paris, France on8-9.11.2000. The Working Group meetingreviewed the ongoing projects and also identifiedand prioritised nine new projects for futurecooperation. At the end of the Working GroupMeeting a Protocol was signed on 9.11.2000.

5.4 The 10th India-Vietnam Joint CommissionMeeting was held in Hanoi on 6�8.11.2000. Bothsides agreed to extend the Memorandum ofUnderstanding for cooperation in the field ofgeology and mineral resources signed on18.4.1994, for a further period of three years.

5.5 The 7th Session of the Indo-RussianWorking Group on Ferrous and Non-FerrousMetallurgy was held in Moscow on 10�11.01.2001. The protocol signed at the conclusionof the Working Group Meeting envisagesstrengthening cooperation in the ferrous and non-ferrous metallurgical sectors.

GEOLOGICAL SURVEY OF INDIA

6.1 Survey

l Specialised Thematic studies in 2086 sqkm have been undertaken.

l Multi-sensor survey of 18,455 line km andAerogeophysical Data Processing of20,350 line km has been conducted.

6.2 Mineral Investigation

l 415 million tonne of coal in parts of Orissa,Madhya Pradesh and West Bengal.

l 30 million tonne of lignite from Gujarat.

l 3.65 million tonne of lead-zinc ore withgrades from 4.60 to 4.84 per cent inRajasthan.

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l 2257 million tonne of limestone (cement,B.F., SMS, LD and chemical grades)estimated in Litang valley of Meghalayaand Porbandar, Junagadh districts ofGujarat.

6.3 Specialised Investigations

l 159 sponsored investigations conductedfor providing geotechnical support to civilengineering projects for water resourcesdevelopment, communication (road, bridge,tunnel etc.) and miscellaneous constructionprojects.

NATIONAL MINERAL AWARDS

7.1 National Mineral Awards are presentedevery year to scientists and technologists workingin the field of earth sciences for striving towardsexcellence.

7.2 National Mineral Awards for 1999 werepresented by Minister of Mines to 29 outstandingrecipients in their respective fields at a functionheld in New Delhi on 16.1.2001.

OTHER EVENTS

8.1 Ministry of Mines has participated in reliefwork in earthquake affected areas of Gujaratthrough HZL incurring an expenditure of aboutRs. 50 lakh. NALCO has contributed an amountof Rs. 150 lakh to Prime Minister�s National ReliefFund towards earthquake relief in Gujarat. BALCOhas provided relief material to earthquake victimsby incurring an expenditure of Rs. 40 lakh. GSIhas provided about 250 tents for this cause.

8.2 Personnel of the Ministry, its subordinateoffices and PSUs have also contributed aboutRs. 110 lakh to the Prime Minister�s NationalRelief Fund from their salaries for the purpose.

Shri Sunder Lal Patwa, Hon�ble Minister of Mines inaugurating National Mineral Award Ceremony in New Delhi on 16.1.2001

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MAIN FUNCTIONS

1.1 The Ministry of Mines is responsible forsurvey and exploration of all minerals, other thannatural gas, petroleum and atomic minerals; formining and metallurgy of non-ferrous metals likealuminium, copper, zinc, lead, gold, nickel etc.and for administration of the Mines and Minerals(Development and Regulation), Act, 1957 inrespect of all mines and minerals other than coal,natural gas, petroleum and atomic minerals. Alist of subjects allocated to the Ministry of Minesand Subordinate Offices, Public SectorUndertakings and Research Institutions under theadministrative control of Ministry of Mines is givenat Table I & II respectively.

ORGANISATIONAL STRUCTURE

2.1 Headed by a Secretary, the Ministry ofMines comprises an Additional Secretary, twoJoint Secretaries, one Joint Secretary & Financial

Adviser common for both the Ministry of Coaland the Ministry of Mines, six Directors, fourDeputy Secretaries (two posts have been upgradedunder in-situ promotion); three Under Secretaries,one Deputy Director (Official Language), threePrincipal Private Secretaries, one Junior ScientificOfficer, fifteen Section Officers, six PrivateSecretaries, one Assistant Librarian andInformation Officer and one Assistant Director(Official Language). Besides this, the Ministry hasa technical wing comprising one Industrial Adviser,one Additional Industrial Adviser, one DevelopmentOfficer and two Assistant Development Officers.The total number of sanctioned posts for theSecretariat of the Ministry of Mines is 52 Gazettedand 198 Non Gazetted posts. In addition, there isa Chief Controller of Accounts common for bothMinistry of Steel and Ministry of Mines assistedby a Pay and Accounts Officer and 35 NonGazetted staff in the Pay & Accounts Office.

CHAPTER II

ROLE AND ORGANISATION OF MINISTRY OF MINES(www.nic.in//mines)

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1. SUBJECTS ALLOCATED

l Legislation for regulation of mines anddevelopment of minerals within the territoryof India, including mines and mineralsunderlying the ocean within the territorialwaters or the continental shelf, or the ExclusiveEconomic Zone and other Maritime Zones ofIndia as may be specified from time to timeby or under any law made by Parliament.

l Regulation of mines and development ofminerals other than coal, lignite and sand forstowing and any minerals declared asprescribed substances for the purposes of theAtomic Energy Act, 1962 (33 of 1962) underthe control of the Union as declared by law,including questions concerning regulation anddevelopment of minerals in various States andthe matter connected therewith or incidentalthereto.

l All other metals and minerals not specificallyallotted to any other Ministry/Department suchas aluminium, zinc, copper, gold, diamond andnickel.

l Planning, development and control of andassistance to all industries dealt with by theMinistry.

2. SUBORDINATE OFFICES

Out of the three subordinate offices under theMinistry at present office of the Controller ofMining Leases will be closed on 1.3.2001.Geological Survey of India (GSI) with itsheadquarter at Kolkata and Indian Bureau of Mines(IBM) with its headquarter at Nagpur are othertwo subordinate offices.

3. PUBLIC SECTOR UNDERTAKINGS (PSUs)

There are five PSUs and two Joint VentureCompanies under the Ministry of Mines. Theyare :

l National Aluminium Company Limited(NALCO), Bhubaneswar;

l Bharat Aluminium Company Limited (BALCO),New Delhi;

l Hindustan Zinc Limited (HZL), Udaipur;

l Hindustan Copper Limited (HCL), Kolkata;

l Mineral Exploration Corporation Limited(MECL), Nagpur;

l Bharat Gold Mines Limited (BGML), Kolar GoldFields (Karnataka);

l Sikkim Mining Corporation (a Company jointlyowned by the State Government of Sikkimand the Central Government)

4. RESEARCH INSTITUTIONS

There are three Research Institutions under theMinistry of Mines. They are :

l Jawaharlal Nehru Aluminium ResearchDevelopment and Design Centre (JNARDC),Nagpur;

l National Institute of Rock Mechanics (NIRM),Kolar; and

l National Institute of Miners� Health (NIMH),Kolar.

TABLE I

LIST OF SUBJECTS ALLOCATED TO THE MINISTRY OF MINES

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SURVEY AND EXPLORATION

1. Geological Survey of India :Regional exploration, geologicalmapping, surveys on land, seaand airborne surveys and priorityassignments to GSI.

2. Mineral Exploration CorporationLtd. :MECL is responsible for detailedexploration of various minerals/ores by drilling and exploratorymining and proving reserves fortheir eventual exploitation.

REGULATION AND CONSERVATION

1. Indian Bureau of Mines :Engaged in promotingconservation and development ofmineral resources of the country.

TABLE II

ORGANISATION UNDER MINISTRY OF MINES

MINING AND PROCESSING

1. Bharat Aluminium CompanyLtd. :Incorporated on 27.11.1965with an integrated Alumina/Aluminium Complex at Korba inChhattisgarh. The Company has49% Govt of India equity.

2. Bharat Gold Mines Ltd. :Incorporated on 22.03.1972 toown and manage the mines atKolar Gold Fields (Karnataka)w.e.f. 1.04.1972.

3. Hindustan Zinc Ltd. :Incorporated on 10.01.1966after the Government of Indiatook over erstwhile MetalCorporation of India to own,manage and develop the mineraland smelting capacities for thestrategic zinc and lead metalsin the country.

4. Hindustan Copper Ltd. :Incorporated in November,1967, it is presently the soleindigenous producer of primarycopper in the country.

5. National Aluminium CompanyLtd. :Incorporated on 7-1-1981 toimplement the Bauxite-Alumina-Aluminium Project in Orissa.

6. Sikkim Mining Corporation (inwhich Central Government has49 per cent equityparticipation) :It produces polymetallic orewhich is treated in theconcentrator plant producingcopper, lead and zincconcentrates.

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MINERAL EXPLORATION2.1 Target for the year 2000-2001 (April, 2000to March 2001) and the achievements for theperiod April, 2000-March 2001 (upto December,2000) and performance during the last twoprevious years are indicated in tables 1, 1.1 and1.2 and figures 1,2 and 3.

SURVEY PROGRAMMES3.1 A coverage of 2900 sq km was achievedagainst a total target of 1280 sq km. Systematic

CHAPTER III-A

SURVEY AND EXPLORATION

GEOLOGICAL SURVEY OF INDIA(www.gsi.gov.in)

INTRODUCTION

1.1 The Geological Survey of India (GSI) is apremier National Scientific Survey and ResearchOrganisation and is also the principal provider ofbasic earth science information to the Government,industry and the general public, as well asresponsive participant in international geoscientificfora. It is an agency known for high credibility ofits information base and publications, nationallyand internationally.

Gold Investigation in Sonbhadra district, UP. Native Gold (0.5 mm) in Borehole core in Gurhar Pahar Area.

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TABLE I

PERFORMANCE DURING 2000-2001

Sl.Sl .Sl .Sl .Sl . Name of the ScName of the ScName of the ScName of the ScName of the Sc heme/heme/heme/heme/heme/ PrPrPrPrPr ogrammeogrammeogrammeogrammeogramme AcAcAcAcAchiehiehiehiehie vementvementvementvementvement PrPrPrPrPr ogrammeogrammeogrammeogrammeogramme AcAcAcAcAcheivementheivementheivementheivementheivement PrPrPrPrPr ogrammeogrammeogrammeogrammeogramme AcAcAcAcAchiehiehiehiehie vementvementvementvementvementNo.No.No.No.No. PrPrPrPrPr oject/Project/Project/Project/Project/Pr ogrammeogrammeogrammeogrammeogramme tartartartartar gggggetetetetet fffffor the periodor the periodor the periodor the periodor the period TTTTTararararar gggggetetetetet fffffor April ’99 toor April ’99 toor April ’99 toor April ’99 toor April ’99 to tartartartartar gggggetetetetet fffffor April ’00or April ’00or April ’00or April ’00or April ’00

1998-991998-991998-991998-991998-99 April ’98 toApril ’98 toApril ’98 toApril ’98 toApril ’98 to 1999-20001999-20001999-20001999-20001999-2000 MarMarMarMarMarccccch 2000h 2000h 2000h 2000h 2000 2000-012000-012000-012000-012000-01 to Dec. 2000to Dec. 2000to Dec. 2000to Dec. 2000to Dec. 2000MarMarMarMarMarccccch ’99h ’99h ’99h ’99h ’99

I.I.I.I.I. MINERAL EXPLORAMINERAL EXPLORAMINERAL EXPLORAMINERAL EXPLORAMINERAL EXPLORATIONTIONTIONTIONTION

(i)(i)(i)(i)(i) LarLarLarLarLar ggggge Scale Mapping (sq km)e Scale Mapping (sq km)e Scale Mapping (sq km)e Scale Mapping (sq km)e Scale Mapping (sq km) 45004500450045004500 3789.013789.013789.013789.013789.01 1774.971774.971774.971774.971774.97 2240.412240.412240.412240.412240.41 1885.071885.071885.071885.071885.07 1152.671152.671152.671152.671152.67

(ii)(ii)(ii)(ii)(ii) Detailed mapping (sq km)Detailed mapping (sq km)Detailed mapping (sq km)Detailed mapping (sq km)Detailed mapping (sq km) 6060606060 66.0066.0066.0066.0066.00 46.3846.3846.3846.3846.38 55.72155.72155.72155.72155.721 39.9839.9839.9839.9839.98 23.78323.78323.78323.78323.783

(iii)(iii)(iii)(iii)(iii) Drilling (meter)Drilling (meter)Drilling (meter)Drilling (meter)Drilling (meter) 1,15,0001,15,0001,15,0001,15,0001,15,000 85,416.3685,416.3685,416.3685,416.3685,416.36 1,03,894.001,03,894.001,03,894.001,03,894.001,03,894.00 87,556.7087,556.7087,556.7087,556.7087,556.70 99,760.8099,760.8099,760.8099,760.8099,760.80 65,799.5965,799.5965,799.5965,799.5965,799.59

II.II.II.II.II. S U RS U RS U RS U RS U RVEY & MAPPINGVEY & MAPPINGVEY & MAPPINGVEY & MAPPINGVEY & MAPPING

(a)(a)(a)(a)(a) GrGrGrGrGround Suround Suround Suround Suround Sur veveveveveyyyyy(i)(i)(i)(i)(i) Syst. Geol. Mapping (sq km)Syst. Geol. Mapping (sq km)Syst. Geol. Mapping (sq km)Syst. Geol. Mapping (sq km)Syst. Geol. Mapping (sq km) 40004000400040004000 824.00824.00824.00824.00824.00 2160.002160.002160.002160.002160.00 18491849184918491849 12801280128012801280 29002900290029002900

(ii)(ii)(ii)(ii)(ii) Spl.Spl.Spl.Spl.Spl. Thematic Mapping (sq km)Thematic Mapping (sq km)Thematic Mapping (sq km)Thematic Mapping (sq km)Thematic Mapping (sq km) 76007600760076007600 6585.506585.506585.506585.506585.50 5764.605764.605764.605764.605764.60 63276327632763276327 71137113711371137113 20862086208620862086

(b)(b)(b)(b)(b) Aerial SurAerial SurAerial SurAerial SurAerial Sur veveveveveyyyyy(i)(i)(i)(i)(i) Multisensor/AerMultisensor/AerMultisensor/AerMultisensor/AerMultisensor/Aer omaomaomaomaomagnetic Surgnetic Surgnetic Surgnetic Surgnetic Sur veveveveve yyyyy 11,00011,00011,00011,00011,000 ***** 18,00018,00018,00018,00018,000 6877.776877.776877.776877.776877.77 28,00028,00028,00028,00028,000 18,45518,45518,45518,45518,455

(with (with (with (with (with TTTTTwin Otter) lkmwin Otter) lkmwin Otter) lkmwin Otter) lkmwin Otter) lkm

(c)(c)(c)(c)(c) Marine SurMarine SurMarine SurMarine SurMarine Sur veveveveve yyyyy

(i)(i)(i)(i)(i) EEZ mapping (sq km)EEZ mapping (sq km)EEZ mapping (sq km)EEZ mapping (sq km)EEZ mapping (sq km) +++++ +++++ +++++ +++++ +++++ +++++(R.V(R.V(R.V(R.V(R.V ..... Sam Sam Sam Sam Samudra Manthan)udra Manthan)udra Manthan)udra Manthan)udra Manthan)

(ii)(ii)(ii)(ii)(ii) TTTTTerritorial watererritorial watererritorial watererritorial watererritorial water sssss 38003800380038003800 34553455345534553455 43004300430043004300 39603960396039603960 44004400440044004400 44834483448344834483(coastal launc(coastal launc(coastal launc(coastal launc(coastal launc hes) (sq km)hes) (sq km)hes) (sq km)hes) (sq km)hes) (sq km)

*Upgr adation of Twin Otter Aircra ft+ Parametric studies were carr ied out. Data presented in Tab les 1.1 and Table 1.2

TABLE 1.1C oC oC oC oC overaveraveraveravera ggggge be be be be b y R.Vy R.Vy R.Vy R.Vy R.V ..... Sam Sam Sam Sam Samudra Manthanudra Manthanudra Manthanudra Manthanudra Manthan

(I)(I)(I)(I)(I) PPPPParametric Studiesarametric Studiesarametric Studiesarametric Studiesarametric Studies TTTTTararararar gggggetetetetet AcAcAcAcAchiehiehiehiehie vementvementvementvementvement TTTTTararararar gggggetetetetet AcAcAcAcAchiehiehiehiehie vementvementvementvementvement TTTTTararararar gggggetetetetet AcAcAcAcAchiehiehiehiehie vementvementvementvementvementcarried within EEZcarried within EEZcarried within EEZcarried within EEZcarried within EEZ (1998-99)(1998-99)(1998-99)(1998-99)(1998-99) (1998-99)(1998-99)(1998-99)(1998-99)(1998-99) (1999-2000)(1999-2000)(1999-2000)(1999-2000)(1999-2000) (1999-2000)(1999-2000)(1999-2000)(1999-2000)(1999-2000) (2000-01)(2000-01)(2000-01)(2000-01)(2000-01) April 2000 toApril 2000 toApril 2000 toApril 2000 toApril 2000 to

Dec. 2000Dec. 2000Dec. 2000Dec. 2000Dec. 2000

(a)(a)(a)(a)(a) BathBathBathBathBath ymetrymetrymetrymetrymetr y (lkm)y (lkm)y (lkm)y (lkm)y (lkm) 67006700670067006700 26942694269426942694 1451014510145101451014510 13,83913,83913,83913,83913,839 8,2428,2428,2428,2428,242 19431943194319431943(b)(b)(b)(b)(b) M aM aM aM aM agnetic (lkm)gnetic (lkm)gnetic (lkm)gnetic (lkm)gnetic (lkm) 58005800580058005800 15201520152015201520 40004000400040004000 32873287328732873287 55825582558255825582 19431943194319431943(c)(c)(c)(c)(c) Sample Station nos. (grab/core/Sample Station nos. (grab/core/Sample Station nos. (grab/core/Sample Station nos. (grab/core/Sample Station nos. (grab/core/ 578578578578578 449449449449449 807807807807807 717717717717717 12741274127412741274 502502502502502

dredgdredgdredgdredgdredg e/water)e/water)e/water)e/water)e/water)

(II)(II)(II)(II)(II) PPPPParametric Studiesarametric Studiesarametric Studiesarametric Studiesarametric Studiesbebebebebeyyyyyond EEZond EEZond EEZond EEZond EEZ

(a)(a)(a)(a)(a) BathBathBathBathBath ymetrymetrymetrymetrymetr y (lkm)y (lkm)y (lkm)y (lkm)y (lkm) 41134113411341134113 34343434343434343434 640640640640640 640640640640640 ————— —————(b)(b)(b)(b)(b) M aM aM aM aM agnetic (lkm)gnetic (lkm)gnetic (lkm)gnetic (lkm)gnetic (lkm) 42354235423542354235 34343434343434343434 ————— ————— ————— —————(c)(c)(c)(c)(c) Sample Stations (nos.)Sample Stations (nos.)Sample Stations (nos.)Sample Stations (nos.)Sample Stations (nos.) 3030303030 0404040404 5050505050 29 fr29 fr29 fr29 fr29 fr o mo mo mo mo m ————— —————

(grab/core/dredg(grab/core/dredg(grab/core/dredg(grab/core/dredg(grab/core/dredg e/water)e/water)e/water)e/water)e/water) 50 stns.50 stns.50 stns.50 stns.50 stns.

TABLE 1.2CoCoCoCoCoveraveraveraveravera ggggge be be be be b y Coastal Launcy Coastal Launcy Coastal Launcy Coastal Launcy Coastal Launc hesheshesheshes

(II)(II)(II)(II)(II) PPPPParametric Studiesarametric Studiesarametric Studiesarametric Studiesarametric Studies TTTTTararararar gggggetetetetet AcAcAcAcAchiehiehiehiehie vementvementvementvementvement TTTTTararararar gggggetetetetet AcAcAcAcAchiehiehiehiehie vementvementvementvementvement TTTTTararararar gggggetetetetet AcAcAcAcAchiehiehiehiehie vementvementvementvementvementcarried within carried within carried within carried within carried within T WT WT WT WT W (1998-99)(1998-99)(1998-99)(1998-99)(1998-99) (1998-99)(1998-99)(1998-99)(1998-99)(1998-99) (1999-2000)(1999-2000)(1999-2000)(1999-2000)(1999-2000) (1999-2000)(1999-2000)(1999-2000)(1999-2000)(1999-2000) (2000-01)(2000-01)(2000-01)(2000-01)(2000-01) April 2000 toApril 2000 toApril 2000 toApril 2000 toApril 2000 to

Dec. 2000Dec. 2000Dec. 2000Dec. 2000Dec. 2000

(a)(a)(a)(a)(a) BathBathBathBathBath ymetrymetrymetrymetrymetr y (lkm)y (lkm)y (lkm)y (lkm)y (lkm) 23202320232023202320 26232623262326232623 24882488248824882488 24492449244924492449 24152415241524152415 1101.21101.21101.21101.21101.2

(b)(b)(b)(b)(b) ShalloShalloShalloShalloShallo w solemic/sub-botton (lkm)w solemic/sub-botton (lkm)w solemic/sub-botton (lkm)w solemic/sub-botton (lkm)w solemic/sub-botton (lkm) 19511951195119511951 17491749174917491749 16961696169616961696 12071207120712071207 28882888288828882888 831.01831.01831.01831.01831.01

(c)(c)(c)(c)(c) M aM aM aM aM agnetic (lkm)gnetic (lkm)gnetic (lkm)gnetic (lkm)gnetic (lkm) 470470470470470 115115115115115 340340340340340 ————— 12101210121012101210 —————(d)(d)(d)(d)(d) Side Scan Sonar (lkm)Side Scan Sonar (lkm)Side Scan Sonar (lkm)Side Scan Sonar (lkm)Side Scan Sonar (lkm) 434434434434434 375375375375375 398398398398398 323323323323323 448448448448448 110.55110.55110.55110.55110.55

(e)(e)(e)(e)(e) Sample Station nos. (grab/core/water)Sample Station nos. (grab/core/water)Sample Station nos. (grab/core/water)Sample Station nos. (grab/core/water)Sample Station nos. (grab/core/water) 699699699699699 705705705705705 745745745745745 593593593593593 12891289128912891289 464464464464464

(f)(f)(f)(f)(f) Current obserCurrent obserCurrent obserCurrent obserCurrent obser vvvvvations (nos.)ations (nos.)ations (nos.)ations (nos.)ations (nos.) 3131313131 3434343434 2626262626 2525252525 5252525252 2424242424

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geological mapping was carried out in parts ofEast & West Kameng district, Arunachal Pradeshwith an objective to build up lithostratigraphyand regional correlation. In the mapped area, threeformations of the Siwalik Group namely (i) theupper Siwalik, (ii) the middle Siwalik and (iii) thelower Siwalik and rocks having affinity to thePermian Gondwana have been identified. Anumber of sedimentary depositional structureshave been noticed and recorded in the area fromthe rocks of Siwalik Group. Fossil impressions ofplant leaves and doubtful seeds/fruits have alsobeen found in these rocks. The rocks of PermianGondwana affinity are exposed over upper Siwalikrocks with a thrusted contact.

3.2 Multidisciplinary specialised thematic studiescovering 2086 sq km have been under takenwith a view to resolving problem related tostratigraphy, structure and tectonics, orelocalisation and conceptual modelling on variousaspects including crustal evolution andmetallogeny.

3.3 Multisensor Surveys were carried outcovering 18,455 line kilometre (lkm) over Raichur-Narayanpet area, Karnataka and Andhra Pradeshto aid exploration for hidden kimberlite pipes andover Hungund area of Karnataka.

3.4 Processing of aerogeophysical data wascarried out in the Geophysical Mapping Centre(GMC) of AMSE for generation of total intensitymagnetic maps, electromagnetic contour mapsand elemental distribution maps for U, Th, K andtheir total count. Data processing of about 20,350line km over Raipur and Betul area was completed.

3.5 About 6929 lkm bathymetric and 3287 lkmmagnetic surveys were carried out along withcollection of 717 seabed samples in five cruisesof R. V. Samudra Manthan. The surveys involvedgeochemical scan for hydrocarbons in the Tapti�Daman offshore sector of Arabian Sea, surveyfor micro-manganese nodules aroundLakshwadeep, parametric survey for OTEC offKrishnampatnam, late Quaternary chrono-stratigraphy of the seabed of Bay of Bengal, westof Andaman & Nicobar Islands including

geochemical scan for hydrocarbons and seabedsurveys in the northern sector within the EEZ offnorth Andaman Island. About 640 lkm ofbathymetric survey was carried out along withcollection of 5 gravity cores and 24 grab samplesunder the Carlsberg Ridge project in the IndianOcean. Additional data on bathymetry werecollected from Arabian Sea and from west ofAndaman in two cruises. Under �Legal ContinentalShelf� programme, to delineate the �Foot of theSlope� (FOS) and 2500m isobath, a total of6910 lkm bathymetric survey has been carriedout.

3.6 R.V. Samudra Kaustubh undertook twocruises for mapping of the seabed within theterritorial waters covering an approximate area of2480 sq km off Andhra and Ganga Delta, WestBengal coasts. About 783 lkm bathymetric,379 lkm seismic, 24 lkm side-scan sonar surveyand 206 samples were collected during the abovetwo cruises. Besides about 1452 lkm bathymetry,489 lkm seismic, 169 lkm side scan surveys and189 samples were collected in six cruises. Theseincluded two cruises for placer mineral, twocruises under geotechnical investigations and onecruise each for engineering survey in KG offshoreand OCEANSAT-1 programme. In addition to theabove, 43 lkm magnetic and seismic surveys alongwith 5 gravity cores were collected under IGCP-396 project. Besides 84 lkm each of bathymetryand seismic survey, 21 samples were collectedfor preparation of sea level curve.

3.7 R.V. Samudra Shaudhikama undertook twocruises for mapping of seabed within territorialwaters off south Gujarat coast and off TamilNadu coast covering an approximate area of1480 sq km. About 394 lkm bathymetric, 367lkm seismic and 169 samples were collectedduring the above cruises. Besides, about 997 lkmbathymetric, 718 lkm seismic, 154 lkm side scansonar survey and 285 samples were collected infour cruises of R.V. Samudra Shaudhikama. Theseincluded one cruise for parametric survey, twocruises for geotechnical appraisal and one cruisefor delineation of palaeostrand line and study oflate Quaternary sea level changes of south Kerala

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coast. Cruise SD-157 slated for preparation ofspecial charts had to be modified to accommodateNIOT sponsored Pipavav pipeline project in Gulfof Khambhat.

3.8 Seabed mapping in the nearshore shallowwater zone up to 5m water depth for geotechnicaland environmental investigations of three projectswere undertaken by mechanised boat. About145 lkm bathymetry and 181 samples werecollected.

MINERAL SEARCH AND EVALUATION

4.1 In connection with the mineral investigationand evaluation 1152.67 sq km of large scalemapping, 23.783 sq km of detailed mapping and65,799.59 m of drilling were done.

4.2 Coal and Lignite

4.2.1 Additional reserves of 415 million tonneof coal and 30 million tonne of lignite have beenassessed from the data generated by regionalexploration in the states of Orissa, MadhyaPradesh, West Bengal and Gujarat.

4.3 Lead and Zinc Ore

4.3.1 1.75 million tonne of lead (Pb)-zinc (Zn)ore with an average grade of 4.60 per cent Pb +Zn in Latio-ka-Khera East block, Dariba-BethumbiBelt, Rajasthan.

4.3.2 1.90 million tonne of lead-zinc ore withan average grade of 4.84 per cent Pb + Zn inSindesar Khurd area of Dariba-Bethumbi Belt,Rajasthan.

4.4 Gold Ore

4.4.1 4.86 million tonne of gold ore with anaverage grade of 1.90 g/t Au down to a depth of180 m in Dona East Block, Andhra Pradesh.

4.4.2 0.09 million tonne of gold ore with anaverage grade of 2.96 g/t Au in Bhukia EastBlock, Banswara district, Rajasthan.

4.4.3 3.27 million tonne of gold ore with anaverage grade of 1.04 g/t Au in Gurhar PaharBlock, Sidhi district, Madhya Pradesh.

4.4.4 0.024 million tonne of gold (Au) ore withan average grade of 13.36 g/t Au in Kottatharablock, Attapady valley, Kerala.

4.5 Rare Earth Elements

4.5.1 79583 tonne of rare metal bearingpegmatite with 0.51 per cent Caesium (Cs) at0.1 per cent cut-off at Beku, in Purulia district,West Bengal. The mineralised pegmatite isenriched in lithium and rubidium. The reserve oflithium (Li) rich pegmatite is 36660 tonne with0.65 per cent Li at 0.5 per cent cut-off grade.1233 tonne of the pegmatite contains 0.52 percent rubidium (Rb).

4.5.2 Rhenium (Re) has been recorded alongwith molybdenum (Mo) in Harur-Uttangarai belt,Tamil Nadu, and analysis of 20 samples indicatedaverage 5.2 ppm Re with a maximum of 8.3 ppmin one sample.

4.6 Manganese Ore

4.6.1 0.48 million tonne of Manganese (Mn)ore with grade varying between 22 per cent and35 per cent Mn from three blocks in Bolangirdistrict, Orissa.

4.7 Diamond

4.7.1 Processing of 481 tonne of material fromAnumpalle pipe (A.P), yielded fourteen diamondswith a total weight of 2.38 carat. In addition asatellite kimberlite body yielded four diamondsweighing 0.66 carat by processing 75 tonne ofmaterial.

4.7.2 20 lamproite bodies, probable host rockfor diamonds, were delineated from seven localitiesof Krishna district, Andhra Pradesh. A total ofeight satellite pipes were identified within a spreadof over one kilometer in the granite terrains ofGulbarga, Raichur and Chitradurga districts,Karnataka.

4.8 Bauxite

4.8.1 Preliminary assessment of resources ofbauxite within laterite capping of Rajpura, Ratnagiridistrict, Maharashtra, indicate presence of grey

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bauxite beneath 3 to 5 m thick laterite capping.Two blocks namely Kumbhawade and Kahaderiappear promising, where 1 to 3 m thick bauxitezone extends over a scarp length of 800 m andover an area of about 2 sq km. The bauxite isgibbsitic.

4.9 Emerald

4.9.1 Emerald mineralisation has been recordedfrom the contact zone of ultramafic bodies andpegmatite/leucogranite between Bargulla andVeenu Bhagal, Rajsamand and Udaipur district,Rajasthan.

4.10 Limestone

4.10.1 2137 million tonne of limestone in theLitang River Valley area, Meghalaya.

4.10.2 120 million tonne of cement gradelimestone at Sheriyakhan, Inaj, Shepa and Rinvadain Porbandar and Junagadh districts, Gujarat, ofwhich 68 million tonne is of chemical grade,containing 52.5 per cent Ca0.

4.11 Molybdenum

4.11.1 In Marudipatti Central and North blocks,boreholes intersected mineralised shear zone atanticipated depths with Mo grade varying from80 ppm to 0.022 per cent.

4.12 Iron Ore

4.12.1 Exploration for iron ore deposits withinthe IOG of Sundargarh and Kennujhar districts,Orissa, has been completed in 1999-2000.Boreholes were drilled in Jumka-Pathiriposhi Pahar,Paharu Pahar and Kedeshala areas, lying on theeastern limb of the Horse-Shoe syncline, on200 m×200 m grid. The boreholes met withmassive ore, hard laminated ore, limonitic oreand blue dust. The average grade of ore is around62 per cent Fe.

4.13 Clay

4.13.1 200 million tonne clay at Palai block,Kasargod district, Kerala, suitable for textile, paper-coating, insecticides, rubber and ceramicindustries.

4.14 Dimension Stone Granite

4.14.1 42.97 million cu.m dimensional stone atMawsaw and Nonglwai in South Khasi Batholithin Meghalaya.

4.14.2 40,000 cu.m. dimensional stone aroundAdoni in Kurnool district, Andhra Pradesh.

SPECIALISED INVESTIGATIONS

5.1 Geotechnical

5.1.1 Geological studies were undertakentowards effective planning and execution of 159civil engineering investigations for water resourcedevelopment, communication and transportationand various civil constructions. Some of theimportant projects include Thein Dam (Punjab),Naptha-Jhakri (Himachal Pradesh), Tehri(Uttaranchal) and Ranganadi (Arunachal Pradesh).Several programmes were undertaken for rationalmanagement and mitigation of natural hazardssuch as earthquake, landslides and floods. Thepublication of Seimsmotectonic Atlas of India isdedicated to the international Decade for NaturalDisaster Reduction. It would be a valuabledocument for planning and execution of pre-disaster initiatives and strategies for mitigationincluding seismic design of structures by alldevelopmental agencies. Other significantachievements include (i) submission of final reporton Chamoli earthquake, (ii) installation of BroadBand Seismic station at Jabalpur, (iii) completionof preliminary work and site preparation for theKhandwa Telemetred Seismic Network.

5.2 Environment

5.2.1 A total of 47 items of GeoenvironmentalAppraisal studies have been taken up. The mostsignificant are :

(i) Regional Geoenvironmental Appraisal of 17districts, with identification ofenvironmental hazards like water logging,gully erosion, water scarcity, overdraft ofgroundwater, soil alkalinity, salinity etc.

(ii) Regional as well as site and theme specificgeoenvironmental studies for Asansol-

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Durgapur area of West Bengal, Nongpoand Byrnihat towns of Meghalaya, Ironore mines of Goa and Coimbatore andSalem towns of Tamil Nadu.

(iii) Geoenvironmental impact assessment ofmarble mining areas of Makrana,Rajasthan, and lignite mine areas of Mata-no-madh and Panandhro, Kachchh district,Gujarat.

(iv) Public health hazard like arsenic incidencein ground water in West Bengal andRajnandgaon district of Madhya Pradesh.

5.3 Dovemap

5.3.1 As a part of Integrated Natural ResourcesSurveys for rural Development, 232 villages werecovered in Assam, Meghalaya and Tripura underDOVEMAP (Development of Village Economythrough Mineral Appraisal) project generatingmultithematic maps on cadastral base.

5.4 Seismotectonics

5.4.1 Highlights of work carried out during theperiod include (i) submission of final report onChamoli earthquake of 29.3.1999, (ii) installationof Broad Band Seismic Station at the permanentsite on Madan Mahal Granite, Jabalpur, (iii)completion of preliminary work and sitepreparation for Khandwa Telemetered SeismicNetwork, (iv) Seismotectonic Atlas in 42 sheetscovering entire India and adjoining areas ofbordering countries has been published (v) openingup of two new units for seismotectonic andseismological studies at Faridabad and Nagpurand (vi) agreement with DST for installation offour permanent GPS stations by GSI.

LABORATORY AND RESEARCH

6.1 Rb-Sr isochron age of 1071 + 83 Ma frombasic granulites of Uslampatti, Madurai-first timeGrenvillian event has been noticed in the southerngranulite terrain.

6.2 The significant findings its of medusoidgenera e.g. Cyclomedusoa davidi, Medusinites

asteroides, Ediacaria flindersi etc. characteristicthe Ediacaran stage (620-600Ma) from a bed atthe base of the Lakheri Limestone of the BhanderGroup (Upper-Vindhyan) in Madhya Pradesh. Thesefinds coupled with the finds of advancedcalcareous algae and large acritachs are expectedto largely remove the obscurity still overshadowing the nature of early life during the latestProterozoic time.

6.3 The finds of sphenodontid reptiles (lizards)are the latest addition to the long list of theterrestrial tetrapods of the Late Triassic (Carnian)Tiki Formation of the South Rewa Gondwanabasin.

6.4 Geophysical works have been helpful indelineating in different geological formations inthe coastal belt of Digha, West Bengal and toidentify parameters for recognising concealed coalfire zones in Raniganj Coalfield.

INFORMATION DISSEMINATION

7.1 A total of 27 Geo-informatics Projects tobuild a comprehensive geoscientific database onprioritized themes were continued.

7.2 GSI has completed scanning and digitisationof 184 sheets (on 1:1 million scale) in the arealying between 8º N and 17º N latitudes, in thestates of Kerala, Tamil Nadu, Karnataka and partsof Andhra Pradesh, NGRI has completeddigitisation of the data for eastern block, boundedby latitudes 17º & 25º N and longitudes 77º &89º E in 163 sheets (1:1 million scale), coveringparts of Andhra Pradesh, Madhya Pradesh, Orissa,Bihar and West Bengal. The data of all the 184sheets digitised by GSI have been merged tomake a composite map using Clarke 1866projection.

7.3 An Indo-Dutch Project INDIGEO, acollaborative venture between GSITI-ITC-MSM hasbeen launched to establish adequate trainingfacilities for map compilation and digitisation aswell as management of digital geo-information.

7.4 A total of 17 quadrangle geological mapshave been published bringing the total upto 209.

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7.5 Other maps printed during the periodinclude : (i) Mineral Map of India (scale 1:5 million)(ii) Hydrogeological Map of India of CGWB (1:2million) 4 sheets and (iii) District Resource maps.

7.6 A total number of 25 scientific publicationshave been released.

7.7 One spectacular achievement of this yearis the installation of a Dinosaur fossil, Kotasaurusyamanapalliensis (reconstructed) in the BM BirlaScience Centre, Hyderabad.

TRAINING

8.1 The Training Institute has so far conducted47 training courses involving 542 officials duringthe last field season. Apart from organising variousbasic and refresher courses for scientificprofessionals, considerable number of courseswere conducted for technical and ministerial stafffor their skill upgradation. Several in-houseinteraction-cum-training programmes wereorganised for HRD in various operations of GSI.40 geoscientists have been trained in advancedcomputer courses like ARC-INFO (GIS). 16 officershave been trained abroad as a part of collaborativeprogramme under ITC (the Netherlands), BRGM(France) and GRG (Japan).

INTERNATIONAL ACTIVITIES

9.1 There are eight on-going InternationalGeological Correlation Programme (IGCP) projectsfor which GSI is the nodal national agency forimplementation and monitoring.

9.2 Bhutan Unit of GSI continued investigationsaided by drilling for base metal and chemical andcement grade limestones besides geologicalmapping and geochemical sampling for preciousmetals and industrial minerals. Geologicalconsultancy for Tala Hydro Electric Project and acouple of Mini Hydel projects have also beenprovided.

9.3 Important bilateral activities include Indo-French, Indo-South Africa, Indo-Myanmar andIndo-Nepal in the various fields of earthscienceactivities and modernisation programmes.

9.4 44 GSI officers could participate inInternational Seminar/Conference/Workshoporganised in India and abroad.

EXPEDITITION TO ANTARCTICA

10.1 GSI is one of the major contributors in theongoing multi-disciplinary and multiorganisationalIndian activity in Antarctica. The geological studiesin Central Dronning Maud Land (CDML) being aprime activity of GSI, is aimed at understandingthe crustal evolution of this part of Antarctica.The geological observations made in Antarcticaare being extended to conceptualise models andprocesses of crust formation during the tworecognised major tectonic events-Grenvillian andPan-African. The GSI till date has mapped about14,800 sq km on 1:50,000 scale comprising theentire Wohlthat and Orvin ranges of CDML. DuringXIX Antarctica Expedition, detailed geologicalmapping on 1:10,000 scale was carried out inthe four nunatacks namely Baalsrudfjellet,Sonstebynuten, Starheirmtind and Pevikhornet.The iceberg-movement monitoring programme inthe Southern Ocean during Antarctica Voyagehas been continued by GSI since 1985, based onthe norms provided by the Norwegian PolarInstitute.

HUMAN RESOURCES

11.1 Employment Position as on 31.12.2000 inGSI is at Table-2

TABLE 2

Sanctioned Filled V acant

Group 2156 216 2372 1687 117 1804 469 99 568 A

Group 452 323 775 347 245 592 105 78 183 B

Group 6496 2942 9438 5059 2438 7497 1437 504 1941 C

Group 3737 3737 3161 3161 576 576 D

Total 9104 7218 16322 7093 5961 13054 2011 1257 3268

Scien

tific

Oth

ers

Tota

l

Scien

tific

Oth

ers

Tota

l

Scien

tific

Oth

ers

Tota

l

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4500

3789.01

1774.97

2240.41

1885.07

1152.67

0

1000

2000

3000

4000

5000

1998 -1999 1999-2000 2000 -2001*

Ta rge t

A c hievem en t

(in sq km)

(in sq km)

(in metre)

Figure 1

* April-December 2000

6066

46.38

55.721

39.98

23.783

0

10

20

30

40

50

60

70

1998-1999 1999 -2000 2000-2001*

Target

A c h ievem en t

115000

85416.36

103894

87556.7

99760.8

65799.59

0

20000

40000

60000

80000

100000

120000

1998-1999 1999-2000 2000-2001*

Target

A c hievem ent

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Figure 2

4000

824

21601849

1280

2900

0

1000

2000

3000

4000

5000

1998-1999 1999-2000 2000-2001*

Target

A chievem ent

(in sq km)

(in sq km)

* April-December 2000

7600

6585.5

5764.66327

7113

2086

0

2000

4000

6000

8000

1998-1999 1999-2000 2000-2001*

Target

A chievem ent

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11000

18000

6877.77

28000

18455

0

5 0 0 0

1 0 0 0 0

1 5 0 0 0

2 0 0 0 0

2 5 0 0 0

3 0 0 0 0

1998-1999 1999-2000 2000-2001 *

Ta rg e t

Ach ie ve m en t

(in line km)

Figure 3

(in sq km)

* April-December 2000

3800

3455

43003960

4400 4483

0

1000

2000

3000

4000

5000

6000

1998-1999 1999-2000 2000-2001*

Target

Achievement

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INTRODUCTION

1.1 The Mineral Exploration Corporation Limited(MECL) was incorporated in 1972 with the specificmandate of detailed systematic exploration andestablishment of reserves of various minerals/ores,so that the large time gap that is entailed betweenthe discovery of a prospect and its eventualexploitation could be curtailed. It is the premierexploration agency in the country now andundertakes exploration work on behalf of theGovernment on promotional basis and for otheragencies on contractual basis. The Company isalso diversifying into commercial mining of

CHAPTER III-B

MINERAL EXPLORATION CORPORATION LIMITED(www.meclindia.com)

selected minerals and coal sampling to increaseits revenue.

1.2 With its Headquarters at Nagpur, MECL hasbeen carrying out operations all over the country.The activities of the Company are carried outthrough separate divisions with specific functions.The operational divisions comprise, Geology,Drilling and Mining. Support services are providedby Finance Division, Materials ManagementDivision, Personnel and Administration Division,Commercial Division and Planning Division. It alsohas a full fledged Information Technology Centreat Nagpur.

Coal Bed Methane Project, Barmer Drill�LMP 2500, Capacity-800 M

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PHYSICAL PERFORMANCE

2.1 The achievement in respect of drilling andmining, and the submission of geological reportsduring the year 2000-2001 (Upto December-2000)vis-a-vis previous two years is at Table-1

TABLE 1

TTTTTararararar gggggetetetetet ActualsActualsActualsActualsActualsPrPrPrPrPr oductionoductionoductionoductionoduction 1998-991998-991998-991998-991998-99 1999-001999-001999-001999-001999-00 fffffor 2000-or 2000-or 2000-or 2000-or 2000- 2000-2000-2000-2000-2000-

ActualsActualsActualsActualsActuals ActualsActualsActualsActualsActuals 20012001200120012001 20012001200120012001(Re(Re(Re(Re(Re visedvisedvisedvisedvised (Upto(Upto(Upto(Upto(UptoEstimate)Estimate)Estimate)Estimate)Estimate) 31-12-2000)31-12-2000)31-12-2000)31-12-2000)31-12-2000)

Drilling (MtrDrilling (MtrDrilling (MtrDrilling (MtrDrilling (Mtr s)s)s)s)s) 2,21,1002,21,1002,21,1002,21,1002,21,100 2,14,5462,14,5462,14,5462,14,5462,14,546 2,15,0002,15,0002,15,0002,15,0002,15,000 105,124105,124105,124105,124105,124

MiningMiningMiningMiningMining 4,5114,5114,5114,5114,511 6,4246,4246,4246,4246,424 60006000600060006000 4,9964,9964,9964,9964,996(Mtr(Mtr(Mtr(Mtr(Mtr s)s)s)s)s)

FinalFinalFinalFinalFinal 4242424242 4444444444 4040404040 2222222222GeologicalGeologicalGeologicalGeologicalGeologicalReporReporReporReporRepor tststststs(Nos.)(Nos.)(Nos.)(Nos.)(Nos.)

2.2 The drilling performance during the yearhas been depressed because of non availabilityof work in the coal sector. The physical targetsare therefore not likely to be achieved this year.This has also resulted in reduced sales and muchhigher losses.

FINANCIAL PERFORMANCE

3.1 The financial performance of the Companyis at Table-2.

OPERATING RESULTS

TABLE 2

(Rs. in crore)

Sl.Sl .Sl .Sl .Sl . DetailsDetailsDetailsDetailsDetails Actuals fActuals fActuals fActuals fActuals f or theor theor theor theor the AnnAnnAnnAnnAnnualualualualual ActualsActualsActualsActualsActualsNo.No.No.No.No. PrePrePrePrePre vious 2 yvious 2 yvious 2 yvious 2 yvious 2 y earearearearear sssss EstimatesEstimatesEstimatesEstimatesEstimates 2000-20012000-20012000-20012000-20012000-2001

98-9998-9998-9998-9998-99 99-200099-200099-200099-200099-2000 2000-20012000-20012000-20012000-20012000-2001 (upto(upto(upto(upto(upto(Re(Re(Re(Re(Re visedvisedvisedvisedvised 31-12-2000)31-12-2000)31-12-2000)31-12-2000)31-12-2000)Estimate)Estimate)Estimate)Estimate)Estimate)

1.1.1.1.1. IncomeIncomeIncomeIncomeIncome 63.4663.4663.4663.4663.46 61.6861.6861.6861.6861.68 60.0360.0360.0360.0360.03 35.6535.6535.6535.6535.65

2.2.2.2.2. Operating Operating Operating Operating Operating CostCostCostCostCost 55.7055.7055.7055.7055.70 54.8854.8854.8854.8854.88 56.0256.0256.0256.0256.02 38.7238.7238.7238.7238.72

3.3.3.3.3. InterestInterestInterestInterestInterest 10.16*10.16*10.16*10.16*10.16* 6.226.226.226.226.22 7.007.007.007.007.00 5.185.185.185.185.18

4.4.4.4.4. Depreciation &Depreciation &Depreciation &Depreciation &Depreciation & 3.433.433.433.433.43 2.722.722.722.722.72 3.003.003.003.003.00 1.841.841.841.841.84amoramoramoramoramor tisationtisationtisationtisationtisation

5.5.5.5.5. Net prNet prNet prNet prNet pr ofi tofi tofi tofi tofi t -6.50-6.50-6.50-6.50-6.50 -3.62-3.62-3.62-3.62-3.62 -5.99-5.99-5.99-5.99-5.99 -10.09-10.09-10.09-10.09-10.09befbefbefbefbef ore incomeore incomeore incomeore incomeore incometax & dividendtax & dividendtax & dividendtax & dividendtax & dividend

*Includes Rs. 4.31 crore towards interest on Government loans for

the year 1997-98.

SALES PERFORMANCE

4.1 Sales performance for the last two yearsand targets and actuals for 2000-2001 in theTable 3 :

TABLE 3(Rs. in Crore)

Sl.Sl.Sl.Sl.Sl. DetailsDetailsDetailsDetailsDetails Actuals fActuals fActuals fActuals fActuals f or theor theor theor theor the AnnAnnAnnAnnAnnualualualualual ActualsActualsActualsActualsActualsNo.No.No.No.No. PrePrePrePrePre vious 2 yvious 2 yvious 2 yvious 2 yvious 2 y earearearearear sssss EstimatesEstimatesEstimatesEstimatesEstimates 2000-2000-2000-2000-2000-

98-9998-9998-9998-9998-99 99-200099-200099-200099-200099-2000 2000-2000-2000-2000-2000- 2001200120012001200120012001200120012001 (upto(upto(upto(upto(upto

(Re(Re(Re(Re(Re visedvisedvisedvisedvised 31-12-31-12-31-12-31-12-31-12-Estimate)Estimate)Estimate)Estimate)Estimate) 2000)2000)2000)2000)2000)

1.1.1.1.1. SaleSaleSaleSaleSale 63.4663.4663.4663.4663.46 61.6861.6861.6861.6861.68 60.0360.0360.0360.0360.03 35.6535.6535.6535.6535.65

ONGOING PROJECTS

5.1 Exploration priority continues to be forenergy minerals i.e. Coal and Lignite. In addition,exploration for Copper, Gold, Granite and CoalBed Methane (CBM) was also continued.

5.2 Under promotional activity, exploration isin progress for following during 2000-2001 (UptoDecember 2000):

5.2.1 Promotional Exploration on behalf ofMinistry of Mines

l Copper at Singhana, Rajasthan

l Gold at Dona East, Andhra Pradesh

l Molybdenum at Harur, Tamil Nadu

5.2.2 Priority Regional Exploration for Coal andLignite on behalf of Ministry of Coal

l Coal in the command areas of SingareniCollieries Company Ltd. and Coal IndiaLtd. (Northern Coalfields Ltd., SouthEastern Coalfields Ltd., Eastern CoalfieldsLtd. & Western Coalfields Ltd. areas)

l Lignite in the States of Tamil Nadu,Rajasthan & Gujarat.

5.3 A brief review of major explorationprogrammes undertaken during 2000-2001 (UptoDecember, 2000) is given below:

Coal

5.3.1 Major exploration activities of MECL

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Lignite

5.3.6 Exploration for lignite was continued onbehalf of Ministry of Coal under priority regionalexploration programme. Against 43700 m ofdrilling allocated in the states of Tamil Nadu,Rajasthan and Gujarat, 33,816 m of drillingrepresenting 77 per cent has been carried out.Besides, exploration for lignite on contractual basison behalf of Commissionerate of Geology andMines (CGM, Gujarat), Gujarat MineralDevelopment Corporation (GMDC, Gujarat) andNLC was undertaken and a total of 16,731 m ofdrilling has been carried out upto December 2000.

Gold

5.3.7 Promotional Exploration work funded byMinistry of Mines for gold was taken up at DonaEast, Andhra Pradesh and 1058 m of drilling wascarried out during 2000-2001 upto December2000. Besides, exploration of Gold at Jagpurablock, Rajasthan, on behalf of HZL wascommenced and 2525 m of drilling has beencarried out.

Granite

5.3.8 Exploration for Granite on behalf of BARCwas taken up and concluded with 121 m ofdrilling during the year.

Coal Bed Methane (CBM)

5.3.9 Deep drilling for Coal Bed Methane on behalfof ONGC was commenced during October 2000at Raniganj and Jharia Coalfield. Till December2000, a total of 2602 m of slime hole drilling hasbeen carried out. During December'2000exploration for Coal Bed Methane on behalf ofRajasthan Petroleum was taken up and 341 m ofdrilling was carried out.

5.4 Significant findings based on MECL'sendeavour :

5.4.1 Total 7690 million tonne of coal reserveshas been established (157 million tonne of mediumcoking coal and 7533 million tonne of non-cokingcoal) in the state of Andhra Pradesh, Chhattisgarh,Maharashtra and Madhya Pradesh.

continued to be for coal, in which explorationwas continued on contractual basis for Non-CILblocks on behalf of Coal India Ltd., and also onbehalf of Ministry of Coal under priority regionalexploration programme. A total of 40637 m. ofdrilling was completed in various blocks of AndhraPradesh, Chasttisgarh, Madhya PradeshMaharashtra and West Bengal for Coal India Ltd.and Singareni Collieries Company Limitedrespectively. Under Priority Regional explorationprogramme on behalf of Ministry of Coal, againstan allocation of 12700 m for the year 2000-2001, 15,958 m of drilling has been completed.Beside, exploratory mining was continued atKalidaspur, Bhopalpalli KTK-5, Bhopalpalli KTK-3& Naheria projects and a total of 1747 m ofmining has been completed upto December 2000.

Copper

5.3.2 Detailed exploration for copper at Singhana(Phase-II) was concluded where 496 m of drillingwas carried out. While, detailed exploration forcopper commenced at Singhana Extension block,Rajasthan and Ghari-Dongri block, Maharashtraand a total of 2900 m of drilling has been carriedout upto December 2000.

Uranium

5.3.3 Mine construction work for Uranium wascontinued at Jaduguda and Narwapahar inJharkhand state as a contractual work for UCILand 1351 m of mining was achieved during theyear upto December 2000.

Lead-Zinc

5.3.4 Mine construction work at Balaria-Mochiaand Balaria-Mochia Development Projects(Rajasthan) on behalf of HZL were continued and901 m of mining has been completed till December2000.

Molybdenum

5.3.5 Mine construction work for Molybdenumat Harur (Tamil Nadu) on behalf of Ministry ofMines were in progress and a total of 899 m ofMining has been completed till December 2000.

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5.4.2 190 million tonne of lignite reservesestablished in the state of Rajasthan and Gujarat.

EXPANSION AND DIVERSIFICATION

6.1 In order to expand the activities of theCompany, vigorous marketing efforts were madethrough competitive biddings and discussions/negotiations, besides entering into MOUs andcollaborative programmes with different clients,within India and abroad. The results of theseefforts, in brief, are as under :

6.1.1 A total of 48 offers were submitted uptoDecember 2000.

6.1.2 Upto December 2000, a total of 26 workorders valued at Rs. 1555 lakh, were receivedfrom various agencies.

6.2 Memorandum of Understanding (MOU)signed with:

6.2.1 Vietnam National Gems and GoldCorporation (VIGEGO) Vietnam, for drilling andassociated Geological work, Development of ITCentre, Jewels & Gem Stone processing.

6.2.2 Drilling and Mining Technical Services(DMTC), Vietnam for drilling and associatedgeological work.

6.2.3 Bharat Gold Mines Limited for shaft sinkingwork.

6.2.4 BARC for investigations in Dongargarh areaand alternate regions and for investigations inJS-1 Extension zone in Jaisalmer District,Rajasthan.

6.2.5 Secretary Mines, Government of Rajasthanand MECL for carrying out exploration for CBM.

6.3 Agreement signed with:

6.3.1 South Eastern Railway, Kharagpur for supplyof quality stone ballast at Dalbhumgarh, Galudihand Ghatsilla Depots.

6.3.2 UCIL for Mine Development work atKhundungri, Narwapahar.

6.3.3 M/s Adkins Services Inc. Texas for

consultancy and Engineering Services for slim holedrilling for CBM in Raniganj and Jharia coalfields.

6.3.4 ONGC for slim hole drilling for CBM inRaniganj and Jharia coalfields.

ENERGY CONSERVATION

7.1 The scope of energy conservation in drillingand project work is very limited. However,following steps are taken on a continuous basisin MECL:

7.1.1 The Machineries/vehicles consumingexcess POL are withdrawn from operation forimmediate repair/overhauling.

7.1.2 Operators are instructed to switch offpower to the motor as soon as the requirementis over, and running of idle motor is kept to theminimum.

7.1.3 Fluorescent tubes are used in place ofincandescent bulbs to reduce consumption ofpower.

COMPUTERISATION

8.1 During the period under review, theInformation Technology upgradation was done ona regular basis in terms of latest hardware,application softwares for undertaking the hi-techapplications such as CAD, geological modelling,Image processing, GIS etc. Facility of computerswere extended to user divisions for effectiveworking and quality improvement.

8.2 The computerised data processing relatedto geological modelling applications usingadvanced softwares GDM, GEMCOM, AUTOCAD,geological reports, salary, EPF, billing, costmodelling of BRGM-MECL project, MIS and othermiscellaneous work continued during the periodunder reference.

8.3 Preparation of Ground water prospectsmaps (3 No's) on 1:50,000 scale in connectionwith Rajiv Gandhi National Drinking Water Missionwas carried out using AUTOCAD MAP Software.The maps were submitted in hardcopy to NRSA.

8.4 Under BGRM-MECL project on

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"Development of Cost Models for EconomicEvaluation of Mining Projects", additional data onvarious cost parameters in mining activity fromGold and Copper mines was collected and putinto databases. Applications of Cost Modeling inUN Framework classification has been added. NewWindow version of GDM software, BRGM, Francereceived under the above project was successfullyinstalled and made operational.

8.5 A two week training on Autocad map 2000was conducted for officials of National Bureau ofSoil Survey and Land use planning.

8.6 In connection with the work onIdentification of Lignite Blocks for Captive Miningin India awarded by NLC, computerisation ofLocation Plans, Geological Logs, Cross-sectionsetc. was done for all lignite blocks in India. Theprocessing work of final textual report was alsodone at IT Centre.

8.7 A total of 15 programmers were developedfor different applications.

ACTION TAKEN ON ABATEMENT OFPOLLUTION AND ENVIRONMENT

9.1 The exploration activities of MECL do notcause any significant pollution. However, as apart of exploration work MECL is carrying outenvironmental studies for helping the exploitationagencies to plan measures for possible pollutionand Environmental Impact Assessment (EIA) invarious exploration projects and a report on thesame is included in geological reports of theprojects. MECL has also taken up "SiteCharacterisation" studies for selection of suitableand safe places for disposal of hazardous wastes.

9.2 During the year 2000-2001, upto December2000. MECL has submitted "Report onenvironmental data generation of MicroMeteorology and water table level generatedduring stage-II (Phase-III) operation at Sub-zone'BD' of zone-8 project. Granite, Bundelkhnadregion (Part-B), Madhya Pradesh" and "Report onReconnoitery Field Survey to select a suitablezone for Stage-II investigation, Project Granite,Dongargarh Region".

9.3 Presently the work of BaselineEnvironmental studies is in progress at Velampattimolybdenum, Tamil Nadu, Langjigarh BauxiteOrissa and Dona-East Gold Andhra Pradesh.

PERSPECTIVE ON NON-FERROUS METALS

10.1 During the year 2000-2001 (upto December2000), MECL has carried out exploration forcopper ore in Singhana Blocks of Khetri CopperBelt, Rajasthan and Garhi-Dongri and Gidhori-Dhorliblocks of Malanjkhand Copper Belt, MadhyaPradesh, on behalf of Ministry of Mines,Government of India under promotional funds. Abrief account of the exploration work carried outby MECL in above mentioned blocks is givenbelow :

10.1.1 Khetri Copper Belt, Rajasthan

l In Khetri area, the exploratory drilling andassociated geological and analytical workhas been carried out by MECL in Singhana(Phase-II) and Singhana Extension blocks.

l In Singhana (Phase-II) block, a total of10660.30 m of exploratory drilling wascarried out during the period December1997 to June 2000 and the work hasbeen completed. During the year 2000-2001, a total 496 m of drilling in theblock was carried out to conclude theexploration. The geological reportsubmitted in December, 2000.

l Singhana Extension block is the northerncontinuity of Singhana (Phase-II) blockwhich has been taken up for explorationin June 2000. Upto December 2000, atotal of 1900 m of drilling and associatedgeological work has been carried out inthe block and the work is continuing.Presence of copper mineralisation has beenestablished in the block.

10.1.2 Malanjkhand Copper Belt, Madhya Pradesh

l In Malanjkhand Copper Belt, theexploration work is in progress in Garhi-Dongri and Gidori-Dhorli blocks.

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10.1.3 Garhi-Dongri Block

l The geophysical work in the block wascommenced in April 2000. It was followedby scout drilling and a total of 1000 mdrilling along with associated geologicalwork were completed upto November2000. The data generated so far in theintegrated exploration work in Garhi-Dongriblock has established the sub-surfacecontinuity of quartz-vein which isconsidered to be the host rock for copper-gold mineralisation in the area.

10.1.4 Gidori-Dhorli Block

l Geological mapping aided with trenching,sampling and geophysical surveycommenced in the month of October,2000 and is currently in progress.

RESEARCH AND DEVELOPMENT ACTIVITIES

11.1 Two Science and Technology (S&T) projectsare in progress in the Company against which anamount of Rs 226.85 lakh have been receivedfrom Ministry of Mines as grant-in-aid forprocurement of capital equipments, theircommissioning by the foreign supplier firm, etc.To implement the projects four officers fromgeophysical section have been identified for fulltime. The running expenditure etc. for undertakingthe field works are being borne by the Company.Project Monitoring Committee (PMC) has beenconstituted as per the guide lines of GOI tomonitor the progress of the projects from time totime.

INDUSTRIAL RELATIONS

12.1 The industrial relations remained by andlarge peaceful and cordial in all establishments ofthe Company.

WELFARE OF SC/STs AND MINORITIES

13.1 MECL has given due importance to meetsocio-economic needs of the tribals and minoritycommunities living in and around each camp/

project sites. However, in view of continuedfinancial constraints being faced by the Company,no welfare activities were undertaken during theperiod under review. However, if any proposalfor welfare activities is received for the upliftmentof weaker sections of society, the same will beconsidered on merits of each case keeping inview the fund availability. Keeping in view difficultfinancial position of the Company, it has beendecided to keep all recruitments including under�Special Recruitment Drive�

HUMAN RESOURCE

14.1. The overall employment position in theCompany as on 31.12.2000 is at Table 4.

TABLE 4

GrGrGrGrGroupoupoupoupoup TTTTTotal No.otal No.otal No.otal No.otal No. S CS CS CS CS C STSTSTSTST Ex-Ex-Ex-Ex-Ex- PhPhPhPhPhysicallysicallysicallysicallysicall yyyyy Mino-Mino-Mino-Mino-Mino-of Em-of Em-of Em-of Em-of Em- SerSerSerSerSer vicevicevicevicevice Handi-Handi-Handi-Handi-Handi- ritiesritiesritiesritiesrities

ploploploploplo yyyyyeeseeseeseesees manmanmanmanman cappedcappedcappedcappedcapped

ExExExExExecutivesecutivesecutivesecutivesecutives 413413413413413 6363636363 2323232323 0303030303 0101010101 3131313131

Non-ExNon-ExNon-ExNon-ExNon-Ex e-e-e-e-e- 24832483248324832483 355355355355355 190190190190190 1616161616 1010101010 220220220220220cutivescutivescutivescutivescutives

TTTTTotalotalotalotalotal 28962896289628962896 418418418418418 213213213213213 1919191919 1111111111 251251251251251

DISABILITY ACT 1995

15.1 Status of implementation of the personswith Disability Act 1995 specially onimplementation of Section 33 on reservation ofvacancies for the persons with disabilities is atTable 5.

TABLE 5

TTTTTotal No.otal No.otal No.otal No.otal No. of of of of of No.No.No.No.No. of disab of disab of disab of disab of disab le perle perle perle perle per sonssonssonssonssons % of disab% of disab% of disab% of disab% of disab ledledledledledpost as onpost as onpost as onpost as onpost as on in position asin position asin position asin position asin position as perperperperper sonsonsonsonson31-12-2000.31-12-2000.31-12-2000.31-12-2000.31-12-2000. on 31.12.2000on 31.12.2000on 31.12.2000on 31.12.2000on 31.12.2000

AAAAA 7171717171 01 (OH)01 (OH)01 (OH)01 (OH)01 (OH) 1.40%1.40%1.40%1.40%1.40%

BBBBB 1111111111 ----- -----

CCCCC 22632263226322632263 08(OH)08(OH)08(OH)08(OH)08(OH) 0.35%0.35%0.35%0.35%0.35%

DDDDD 220220220220220 2 (12 (12 (12 (12 (1 OH + 1 OH + 1 OH + 1 OH + 1 OH + 1 VH)VH)VH)VH)VH) 0.90%0.90%0.90%0.90%0.90%

MOU RATING

16.1 The MOU rating of the Company for lastthree years is given in Table 6.

Gr

Gr

Gr

Gr

Gr o

upou

pou

pou

pou

p

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TABLE 6

YYYYYearearearearear MOU RatingMOU RatingMOU RatingMOU RatingMOU Rating

1997-981997-981997-981997-981997-98 VVVVVererererer y Goody Goody Goody Goody Good

1998-991998-991998-991998-991998-99 GoodGoodGoodGoodGood

1999-20001999-20001999-20001999-20001999-2000 GoodGoodGoodGoodGood

PROGRESSIVE USE OF HINDI IN OFFICIAL WORK

17.1 In accordance with the Policy of theGovernment of India for extensive use of Hindifor official purposes and also keeping in viewthat the year 2000-2001 as Golden Jubilee Yearfor implementation of Hindi as Rajabhasha, MECLmade increased efforts for added use of Hindi inofficial work.

17.2 4 employees were imparted training in Hindityping during internal training programme from5.6.2000 onwards in order to promote the useof Hindi in official work.

l On 2.8.2000, a Hindi Debate competitionwas successfully organised for studentsfrom VIIIth to XIIth Class of CentralSchool, Vayusena Nagar, Nagpur. On14.8.2000, the Hindi debate competitionfor wards of MECL Employees wasorganised in the MECL Premises.

l Two days inhouse Hindi workshop wasorganised on 4�5.8.2000 wherein 27MECL employees participated.

l Hindi fortnight and Hindi diwas wasorganised during the period from 4th to16th September, 2000 and on 14.9.2000respectively.

PROGRESS ACHIEVED WITH REGARD TO THEWELL BEING OF THE OLDER PERSONSDURING THE YEAR

18.1 In Order to provide assistance to ouremployees opting for VRS or retiring onsuperannuation for better and judicious investmentof their earnings, a two day workshop on"Management of post retired life" was organisedfrom 25�26.2.2000 wherein 21 participants tookpart. Similar type of programmes are also proposedto be conducted subject to availability of resourcesin future.

REDRESSAL OF PUBLIC GRIEVANCES

19.1 The public grievance generally received bythe office pertains to payments to suppliers andsettlement of terminal dues of retired employees.These are handled through Director (PG) or atCMD's level. Also these grievances are discussedin the quarterly review meetings taken by CMDand Directors and redressal measures taken. Onlyone grievance case was received during the year,which was settled.

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INTRODUCTION

1.1 Indian Bureau of Mines (IBM) is asubordinate organisation under the Ministry ofMines. It is engaged in the promotion ofconservation of minerals, in regulating the impactof mines' on environment and scientificdevelopment of all the mineral resources of thecountry, other than coal, petroleum and naturalgas, atomic minerals and minor minerals.

1.2 Towards this end, it performs regulatoryfunctions, namely enforcement of the Mines and

Minerals (Development and Regulation) Act 1957,Mineral Conservation and Development Rules1988 (MCDR, 1988), and the relevant provisionsof the Mineral Concession Rules 1960 andEnvironmental Protection Act 1986. It alsoundertakes scientific, techno-economic, researchoriented studies in various aspects of mining,geological studies, ore beneficiation andenvironmental studies.

1.3 IBM also performs the role of a facilitatorfor the mining industry. It provides Technical

CHAPTER IV

REGULATION AND CONSERVATIONINDIAN BUREAU OF MINES

(http://ibm.nic.in)

Afforestation at Kudremukh Iron Ore Mines

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3.2 During the year, 2000-2001 (uptoDecember, 2000), 1887 mines were inspectedfor implementation of MCDR, 1988 and to ensurethat mining operations are carried out inaccordance with the approved mining plan. As aresult, during the year 2000-2001 (uptoDecember, 2000) 1,641 violations of MineralConservation and Development Rules (MCDR)1988 were pointed out in respect of 835 minesand 508 violations were fully rectified. Seventy-nine prosecutions were launched in various courts.Fifty one cases were decided in favour of IBMand 28 cases were compounded.

3.3 Cumulative number of mining plans receivedby the IBM at various Regional Offices since itsintroduction upto the end of December, 2000were 10,322. Out of these, 8065 mining planswere approved, 1098 rejected, 787 withdrawnby the parties and 212 were pending with theparties for modification with reference to thecomments conveyed to them after scrutiny, 149mining plans were under scrutiny with the IBM atvarious Regional/Zonal offices and 11 mining planswere pending with the Directorate of Mines Safetyfor their comments.

MEASURES FOR ABATEMENT OF POLLUTIONAND ENVIRONMENTAL PROTECTION

4.1 IBM undertakes inspections/studies for theenforcement of provisions of MCDR, 1988 whichinclude provisions on protection of environment.During inspections it ensures that mine operatorsare taking due care for removal and utilisation oftop soil, storage of over-burden/waste rock,reclamation and rehabilitation of land, precautionagainst ground vibration, control of groundsubsidence, abatement measures against air, waterand noise pollution, restoration of flora etc., inaddition to other conservation and developmentalmeasures. Necessary guidance to minemanagements/operators are also given forsystematic and scientific development of minesincluding protection of environment. Whileapproving the mining plans and the schemes ofmining, IBM ensures that environment impactassessment studies have been carried out and to

Consultancy Services to the mining industry forthe geological appraisal of mineral resources, andthe preparation of feasibility reports of miningprojects, including beneficiation plants. It preparesmineral maps and a countrywide inventory ofmineral resources of leasehold and freehold areas.IBM also functions as the Data Bank of Minesand Minerals and publishes statistical periodicals.It also brings out technical publications/monographs on individual mineral commoditiesand bulletins of topical interest. It advises theCentral and State Governments on all aspects ofmineral industry, trade, legislation, etc.

1.4 IBM imparts training to technical and non-technical officials of IBM and also persons fromthe mineral industry and other agencies in Indiaand abroad.

ORGANISATIONAL SET-UP

2.1 IBM is organised into four functionaldivisions, namely, (i) Mines Control andConservation of Minerals (MCCM) Division, (ii)Ore Dressing and Technical Consultancy Division,(iii) Mineral Economics, Statistics, Research andPublication Division, and (iv) Planning and Co-ordination Division having two sub-divisions:

l Administration, Establishment matters(including training), accounts with all otheradministrative and financial matters; and

l Planning and Coordination.

2.2 IBM has its headquarters at Nagpur andtwelve regional offices at Ajmer, Bangalore,Bhubaneswar, Calcutta, Chennai, Dehradun,Hyderabad, Jabalpur, Margao (Goa), Nagpur,Ranchi and Udaipur and two sub-regional officesat Guwahati and Nellore.

2.3 IBM has well equipped ore dressinglaboratories and pilot plants at Nagpur, Ajmerand Bangalore.

PERFORMANCE REVIEW

3.1 The performance of IBM in respect of itsmain activities during the period under review isindicated in Table-1.

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TABLE I

PERFORMANCE OF IBM DURING THE YEAR 2000-2001(UP TO DECEMBER, 2000)

Sl. Item Actual Target for AchievementNo. 1998-1999 1999-2000 2000-2001 2000-2001

(upto Dec., 2000)

1. Inspection of Mines 2760 2791 2650 18872. Mining, Geological and Other Studies 51 39 - -3. Special Geological Investigations/

Studies for updating NMI 562 1230 5015 47744. Approval of Mining Plans

(a) No. of Mining Plans(i) Approved 679 670 - 561(ii) Rejected 78 71 - 72(b) No. of Mining Schemes(i) Approved 138 177 - 157(ii) Rejected 27 23 - 26

5. Updation of National MineralInventory (NMI)

(i) Generation of regionwise/depositwise output as on1.4.1995 (No. of minerals) 18 43 - -

(ii) Processing and tabulationof data for NMI as on1.4.2000. (No. of minerals) - - 20 Work in progress.

6. Preparation/Updation of 19,698 18,000 14,000 Mineral maps alongwithMineral Maps (Hects) forest overlays of

limestone lease-holds inRajasthan covering about22,700 Hects. wereprepared. Preparation ofmineral maps ofsillimanite leaseholds inNE region was inprogress

7. OD Investigations 70 70 70 46 completed and 13 inprogress.

8. Chemical Analyses (No. of radicals) 53,348 49,095 50,000 38,494 completed and501 in progress.

9. Mineralogical Studies 2,689 2,444 2,300 1,697 completed and 23in progress.

10. Technical Consultancy assignments 2 8 9 711. Mining Research including

Environmental Studies 3 3 2 6

12. Training 21 27 20 14

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that effect environmental management plan hasbeen incorporated for its effective implementation.

4.2 After the enforcement of MCDR, 1988,extensive afforestation has been undertaken inthe mines. During the year 2000-2001 (uptoDecember, 2000) about 3.15 million trees havebeen planted in and around mine areas, thustotalling to 51.15 million trees planted so far.

4.3 IBM continued to take initiative to organiseMines Environment and Mineral Conservation(MEMC) Weeks every year in important miningcentres through its regional offices to promoteawareness amongst mine owners for minimisingenvironmental pollution.

PREPARATION OF MINERAL MAPS

5.1 During the year 2000-2001 (uptoDecember, 2000), preparation/updation of mineralmaps of limestone leaseholds in Rajasthan,covering about 22,700 hectares was completedand corresponding forest overlays are in progress.Preparation of mineral map of sillimanite leaseholdsin North-Eastern Region was also in progress.Besides, 20 index maps of bauxite in Goa,Karnataka, Maharashtra and Tamil Nadu, and ironore in Goa were digitised.

MINERAL BENEFICIATION

6.1 Mineral beneficiation studies includingmineralogical testing and chemical analysis isintimately related to both conservation anddevelopment of mineral resources. During the year2000-2001 (upto December, 2000), 46 oredressing investigations, 38,494 chemical analysesand 1,697 mineralogical examinations werecompleted. Besides, 13 in-plant studies werecarried out during the period.

INVENTORY OF MINERAL RESOURCES ANDMARKET SURVEY REPORT

7.1 Five-yearly updating of National MineralInventory as on 1.4.2000 is in progress. MarketSurvey report on China clay was released. Anannual bulletin on Copper-Lead-Zinc, 1998-99

issue was released. Besides, three quarterly reportson End-use metal consumption for Copper-Lead-Zinc for quarters ending March, 2000, June, 2000and September, 2000 were prepared.

STATISTICAL PUBLICATIONS

8.1 IBM disseminates statistical information onmines, minerals, metals and mineral basedindustries through its various publications.Information on mineral production, stocks,despatches, employment, inputs in mining, miningmachinery and related matters received from themine owners on statutory basis under the MCDR,1988 and ancillary statistics on metals production,mineral trade and market prices of minerals,revenue from the mining sector, rent, royalty andcess on minerals, etc. from other agencies iscompiled regularly by IBM.

8.2 The statistical publications released duringthe year 2000-2001 (upto December, 2000)include Statistical Profile of Minerals, 1999-2000issue, and 8 issues (upto June, 2000) of MonthlyStatistics of Mineral Production. Besides, IndianMineral Industry at a Glance, 1998-99 issue wasunder printing.

CONSULTANCY SERVICE

9.1 IBM provides technical consultancy serviceson prescribed charges for geological appraisals,survey of the areas, preparation of feasibility studyreports, environment impact assessment andenvironment management plan, selection ofsuitable mining equipment, evaluation of feasibilityreport prepared by other consultants, financialinstitutions, etc. The assignments completedduring the year 2000-2001 (upto December,2000) include (i) Experimental deep hole drillingin Viyakaloor Thutoor area in Kanyakumari districtfor M/s Indian Rare Earths Ltd., (ii) Mining Schemeof Dalli (Manual) Iron ore Mine for M/s BhilaiSteel Plant (iii) Mining plan of Red Hill MagnesiteMine for M/s Burn Standard Co. Ltd., Salem (iv)Collection of sample from Nalwaya Soapstonemine for M/s Nalwaya Mineral Industries (P) Ltd.,Udaipur (v) Collection of limestone samples for

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Lab. scale and pilot plant scale tests for M/s DLFCements Ltd., Distt. Pali, Rajasthan(vi) Topographic survey of Kasnau-MatasukhLignite block for M/s RSMM, Ltd., Udaipur and(vii) Volume assessment of rock excavation fromthe pit of Malanjkhand Copper Mine for M/s HCL.In addition to the assignments already completed,11 assignments on preparation of mining scheme/preliminary geological appraisal reports are inprogress.

TECHNICAL PUBLICATIONS

10.1 IBM brings out technical publicationsrelating to mines and minerals, mineral basedindustries, trade, beneficiation, R&D activities, etc.During the year 2000-2001 (upto December,2000), a publication on India's Trade and ExportProspects in Minerals, Metals and Alloys, Bulletinon Mining Leases and Prospecting Licences - 1988and a half-yearly bulletin on Mineral Information,April-September, 1999 issue were released.Besides, Indian Minerals Year Book (IMYB) 2000issue was under printing.

10.2 Under the series "Mineral Facts andProblems" the Monograph on Copper was releasedand Monograph on Clay was under printing.Besides, updating of Monographs on (i) limestoneand dolomite and (ii) chromite was in progress. Abulletin on Reclamation/Restoration Techniquesand Strategy for Mined out areas was released.

MINING RESEARCH

11.1 Applied Mining Research is carried out onvarious mining aspects so as to help in systematicdevelopment of mines and improvement inproductivity in mines through evolution of suitablenorms. Industry sponsored assignments onenvironment and rock mechanics aspects, oncharge basis are also undertaken. During the periodunder review, six assignments viz (i) Geo-technicalstudies at Osam Hill Perlite Mine for M/s RajMinerals (ii) Geo-technical Investigation forensuring safety of Makrana-Jodhpur Railway Tracknear Makrana Marble Mine, Rajasthan (iii) Geo-technical Investigation of Sukinda Chromite mine

for M/s TISCO (iv) Study of Controlled Blastingand assessment of ground vibration due to blastingat Mainpet bauxite mine for M/s BALCO (v) Studyof Blast vibration at the mines of My HomeCement Mines Ltd., in Nalgonda district. (AP)and (vi) Environmental Audit of Karmarda chromitemine for M/s B C Mohanty & Sons, Pvt. Ltd,Cuttack (Orissa) were completed and reportssubmitted to the parties. Besides, 14 assignmentssponsored by the Industry on charge basis are inprogress.

TRAINING

12.1 IBM imparts training to technical and non-technical officials of IBM and also to personsfrom mineral industry and other agencies in Indiaand abroad. During the year 2000-2001 (uptoDecember, 2000), 14 training programmes wereconducted in which a total of 183 IBM personneland 79 industry personnel including 27 fromNorth-Eastern States participated.

ADVISING CENTRAL AND STATEGOVERNMENTS ON MATTERS CONNECTEDWITH THE MINING AND MINERAL INDUSTRY

13.1 IBM continued to advise the Central andState Governments on matters concerning minesand minerals, mining legislation, export and importpolicies, mineral consumption and industrialutilisation, recovery of by-products, demand andsupply of minerals, renewal of mining leases.Necessary material was also furnished to theMinistry for answering Parliament Questions duringits various sessions. Assistance was also renderedto private parties, institutions and foreignorganisations on subjects like mineral productionand other statistics.

IBM-BRGM PROJECTS

14.1 Project on Development of ApplicationTechniques in relation to EnvironmentalManagement of Mines and WasteRecoveries:

14.1.1 Final report on regional EMP on Sukindaand Goa areas, Joint Task Force Executive

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Summary report, EMP reports of South Kaliapanimine of Sukinda area and Jaquella-Pale mine ofGoa area were received from BRGM, France. Thus,the project was successfully completed andtermination agreement was signed between IBM& BRGM, France on 10.10.2000 at Nagpur. As afollow up action of the report, the minemanagements in respect of 11 iron ore mines inSouth Goa were directed to take proper abatementmeasures to prevent wash offs from the wastedumps which pollute paddy fields etc. Similarly,environmental issues were brought to the noticeof the mine managements in respect of 11 minesin Sukinda chromite valley highlighting theproblems of pollution of surface and undergroundwater by hexavalent chromium and educatingthem about the possible abatement measures.Further, they have been directed to take necessarycorrective measures and intimate the detailedaction plan to IBM.

14.2 Technical Management InformationSystem (TMIS) at IBM

14.2.1 The main objectives of the project are (i)Organisation of MCCM data into a relational database (TMIS), (ii) Establishment of a database linkbetween Central Headquarters, Zonal & Regionaloffices of MCCM (WAN & LAN), (iii) Procurement/installation of network and computer equipment(iv) Training of IBM personnel in administrationand management of TMIS database and (v)Upgradation/linkage of existing MRIS database.

14.2.2 Out of nine phases of the project, so fareight phases have been completed as perschedule. Final phase of the project on preparationof final report as well as technical report of theproject is excepted to be completed by March,2001.

SEMINARS/EXHIBITIONS

15.1 IBM jointly with Indian Institute of MineralEngineers organised a National Seminar on MineralProcessing Technology-Perspective for newMillenium during 4.4.2000�6.4.2000 at Nagpur.The objectives of the seminar were to have closeinteraction between R&D Organisations, Academic

Institutions, Equipment Manufacturers and Expertsfrom Mineral Industry, and to review the problemsfaced by Mineral Industry vis-a-vis to take stockof latest developments to meet the challenges ofNew Millenium.

15.2 An R&D meet with the representatives ofmining and mineral industry was jointly organisedby Kolkata and Bhubaneswar Regional offices ofIBM on 8.8.2000 at RRL, Bhubaneswar.

15.3 IBM had set up a stall in the Pavilion ofMinistry of Mines during 27�29.9.2000 in theInternational Trade Fair Minerals, Metals andMetallurgy-2000, which was co-sponsored byMinistry of Mines.

IMPLEMENTATION OF UNITED NATIONS (UN)CLASSIFICATION OF MINERAL RESOURCES

16.1 With a view to providing exposure to theUnited Nations Frame Work Classification (UNFC)System, FIMI organised a Regional Seminar onImplementation of UNFC for reserves/resources:solid fuels and minerals in the Indian Ocean Rimcountries under the auspices of the Ministry ofMines in cooperation with the United NationsEconomic Commission for Europe (ECE) and UnitedNations Social and Economic Commission for Asiaand Pacific (ESCAP) at Agra on 23�24.11.2000.IBM presented a report of the Committee onformulation of field guidelines for implementationof UNFC for Mineral Resources in India. A paperentitled "A Comparison and Correspondencebetween Existing Mineral Classification Systemof India and United Nations Frame WorkClassification (UNFC) System" was also presentedby IBM.

NATIONAL TECHNOLOGY DAY IN IBM

17.1 In pursuance of the declaration made bythe Honb'le Prime Minister of India that 11.5.2000may be celebrated as National Technology Day,IBM celebrated National Technology Day in itsHeadquarters at Nagpur as well as in all Zonal/Regional offices and laboratories and pilot plants.

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17.2 Modern Mineral Processing Laboratory andPilot Plant at Nagpur and Regional Ore DressingLaboratories at Ajmer and Bangalore conductedlive demonstration of operations of machines, testwork on ore beneficiation etc., to the visitors.Lectures of eminent personalities from AcademicInstitutions and Mineral Based Industries werearranged at various offices. A one day seminarwas also organised at Bangalore.

SUB-GROUP CONSTITUTED BY THE GROUP ONMARBLE DEVELOPMENT (GMD)

18.1 The Sub-group constituted by GMDsubmitted its report entitled "Report of the Sub-group Constituted by Group on MarbleDevelopment for Examining Mechanisation inMarble Quarries" to the Chairman of the GMD forconsideration.

EXPERT GROUP FOR CONSIDERING THERECOMMENDATIONS FOR CMRI PROJECT

19.1 Expert Group constituted under theChairmanship of Controller General, IBM forconsidering the recommendations for CMRI projecton "Design, Development and Production of MultiProcessor based continuous DeformationMonitoring System for the Safety of Mines andUnderground Openings" submitted its report tothe Ministry of Mines for consideration.

VISIT OF NATIONAL STATISTICAL COMMISSION

20.1 The Govt. of India has recently set up aNational Statistical Commission to look into thedeficiencies in the existing statistical system inIndia and also to recommend measures forsystematic revamping of the system to make itmore responsive to the needs of the economy,especially in view of the liberalisation andglobalisation of the World Economies. In thisregard, members of the sub-group "Industry,Commerce and Corporate Sector Statistics" visitedIBM on 16.8.2000 and held detailed discussionson the present system of collection, processingand dissemination of data relating to mining andquarrying sector to suggest ways and means ofimproving the existing statistical set up in the

Bureau. Special emphasis was given on thegeneration of monthly mineral production dataused for computation of index of mineralproduction with base 1993-94 = 100. This datais supplied to the Central Statistical Organisationevery month by the Bureau as per the SpecialData Dissemination Standards laid down by theInternational Monetary Fund.

VISIT OF TRADE DELEGATION FROM CANADA

21.1 A Trade delegation from Canada visitedRegional Ore Dressing Laboratory, IBM, Bangaloreon 5.12.2000. An overview of areas wherecollaborative work is possible were discussed andthe delegation assured that they will visit IBMagain once the projects are identified.

WORK DONE BY IBM IN NORTH-EASTERN REGION

22.1 Sub-regional office of IBM at Guwahaticontinued to undertake inspection of mines/studies on development of resources of the North-Eastern region.

22.2 IBM conducted a training programme atAizwal during 25�29.4.2000 on Mining andGeology for the personnel from the StateDirectorates of Geology and Mining, StateUndertakings and Private Companies of North-Eastern Region. A total of 25 technical personsconnected with Mining Industry participated inthe training programme, which was free of cost.

22.3 S&T Scheme on "Characterisation of Clayand Silica Sand Deposits occurring in NE Statesand their Techno-Economic Evaluation forIndustrial uses" is being implemented by IBM. Anumber of studies on clay samples received fromNE region were conducted by IBM and it willcontinue to collect samples and test them free ofcost in the IBM's laboratory on regular basis.

22.4 IBM has already taken up a study to improvethe grade of concentrates and performance ofplants operated by Sikkim Mining Corporation. Inthis connection samples of complex sulphide ore(Lead-Zinc-Copper) have been received from SMCand the test work is in progress. Based on theresults of the test work, IBM will develop process

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flow sheet on fresh raw samples from Bhotangcomplex ore, Panchghani Copper ore and Dikchucomplex ore.

22.5 IBM has already taken up environmentalstudy on generation of baseline data andpreparation of rapid EMP for Bhotang and Dikchucopper mines of M/s SMC with a view to studythe impact on environment due to disposal oftailings in the surrounding river and suggest waysto treat the effluents before they are dischargedinto the river.

22.6 Consultancy assignments on preparation of(i) Mining plan of Panchghani copper mine ofSMC (ii) Mine development scheme of Bhotangcopper mine of SMC (iii) Updating of feasibilityreport on Dikchu copper lead zinc project of SMC(iv) Mining scheme of Umrangso limestone mineof M/s Assam Mineral Development CorporationLtd., Guwahati (v) Mining scheme of Umrangsolimestone mine of M/s Umrangso Cement Ltd.,Guwahati, were taken up by IBM and are inprogress.

REVENUE GENERATION IN IBM

23.1 Revenue generated during 2000-2001 (uptoDecember, 2000) from the consultancy work inmining, geology, ore dressing and mining researchwork, training and through sale of publicationsetc. was Rs. 62.51 lakh against an annual targetof Rs. 1 crore.

COMPUTERISATION

24.1 Under Mineral Resource Intelligence System(MRIS), IBM is maintaining databases on NationalMineral Inventory, Mines cum Production, MiningLeases, External Trade, Mineral Consumption andWorld Mineral Intelligence. These databases areimportant information source for Government andPrivate agencies on mining and mineral basedindustries.

24.2 Besides Word Processing, computers arebeing used for preparation of EnvironmentManagement Plan, Orebody Modeling and Geo-statistical Analysis, preparation of Mineral Map

using ML-GIS package and Library Management.Advanced software like JKSIMMET, CANMET,BILCO 2.0, VISIO 2.0 etc. are used in the OreDressing Laboratories and Pilot Plants. DataAcquisition System is used while conducting PilotPlant test runs for controlling some of the circuitslike pulp density in grinding circuits, pH in flotationcircuit etc. and acquiring real time data fromvarious filed instruments.

24.3 In order to link all the Regional/Zonal officesand Headquarters of IBM, more sophisticatedsystem based on client server architecture hasrecently been established with the help of BRGM,France, which include new databases required byIBM. IBM has added well established LAN facility,besides WAN system to communicate andexchange data from Regional, Zonal offices andHeadquarters.

24.4 IBM is maintaining a website (http://ibm.nic.in), linked with the site of Ministry ofMines. This website provides the main functionsand activities of IBM, services provided in thefields of geology, mining, environmental studiesas technical consultancy, computerisedinformation, list of IBM publications along withcontact persons and their address, and mineralresources, production, exports and imports ofminerals and metals.

IBM ADVISORY BOARD

25.1 12th meeting of the IBM Advisory Boardwas held at Nagpur on 24.5.2000 under thechairmanship of Secretary (Mines). Importantdecisions taken in the meeting are as under:

l Charter of functions of IBM may bemodified in the light of present Scenarioof Mining Industry.

l MCDR forms may be revised in the lightof recent amendments so as to make themmore meaningful and useful for decisionmaking.

l IBM and GSI should make all efforts toadopt the UN classification for preparing

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mineral inventory and find out ways toensure global compatibility.

l IBM shall specify a minimum area for grantof mining lease below which it will not beamenable for scientific development andmining.

INTERNATIONAL CONGRESSES

26.1 IBM officers attended the 18th WorldMining Congress and MINEXPO International 2000at Las Vegas, Nevada, USA organised by NationalMining Association, USA during 9�12.10.2000and presented a paper entitled "Surface andUnderground Metalliferous Mining-Evolving Scenein India".

26.2 IBM Officers attended the XXI InternationalMineral Processing Congress held during23�27.7.2000 at Rome, Italy and presented apaper entitled "Physical Separation Processing ofa Bulk Tin-Tungsten Pre-concentrate into itsIndividual Constituents for CommercialApplications". In all, 432 delegates from variouscountries participated in the Congress.

WORK DONE CONCERNING WOMEN(PERSPECTIVE PLAN FOR WOMEN)

27.1 IBM has not drawn up any specificperspective plan for women, however, out of atotal strength of employees, women employeesconstitute about 11 per cent. Training wasimparted to some women employees in the fieldof technical as well as administrative matters.

27.2 Women employees are also activelyparticipating in various cultural and extra-curricularactivities organised by IBM from time to time.The �Women's Day� was observed during theNational Integration Week.

EMPLOYMENT OF SC/ST, WOMEN AS ONDECEMBER, 2000

28.1 Employment of SC/ST, Women as on31.12.2000 is at Table 2.

TABLE 2

Class Total No. No. of No. ofof emplo- SC ST OBC Womenyees inposition

Group A 252 53 19 3 08Group B 84 14 05 1 04Group B 54 08 06 0 13(NG)

Group C 472 74 37 9 29(Tech)

Group C 342 67 31 6 86(Min)

Group D 354 107 35 9 28

Total 1558 323 133 28 168

REDRESSAL OF PUBLIC GRIEVANCES

29.1 At the opening of the year eleven caseswere pending. Four more cases were receivedduring the year 2000-2001 (upto December,2000), and three cases were disposed off andtwelve cases are pending.

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A PERSPECTIVE ON ALUMINIUM

1.1 India has large resources of High GradeBauxite deposits of the order of 3037 MillionTonnes (MT) (proved + probable + possible).The recoverable reserves are placed at 2525 MT.The proved and proable reserves are 1218 MT,placing the country 5th in rank in the world, nextonly to Australia, Guinea, Brazil and Jamaica.Even at an anticipated consumption of 7 MillionTonne Per Year (MTPY) of Bauxite, these reservesare expected to last for over 350 years. Giventhe natural resource endowment, growing demandfor Aluminium and its alloys, economicopportunities and scope for exports, India canproduce Alumina at internationally competitiveprices. Aluminium metal can also be producedcompetitively with the latest technology coupledwith cheaper energy arrangements in India or bytoll smelting Alumina in low power cost Aluminiumsmelters abroad. The greatest scope for valueaddition and employment lies in the developmentof down stream Aluminium end-products likeextrusions, rolled products, fabrication and finisheditems. India can benefit by this value additiongiven the low energy requirements and labourintensity of down-stream industries. Aluminiumhas significant industrial and economic importancefor India, as this is the one metal for which thecountry has abundant raw material. While ourBauxite reserves account for 7.5% of the world�stotal deposits, our Aluminium capacity is only3%, indicating the scope and need for newcapacities to meet growing internal demand and

for sizable exports on a long term basis. Demandfor Aluminium is expected to grow rapidly withincreasing use in the construction, powertransmission, transport and packaging sectors.

BAUXITE

2.1 Alumina is produced from Bauxite ore.About 1 tonne of Alumina is produced from3 tonnes of Bauxite and about 1 tonne Aluminiumis produced from 2 tonne of Alumina.

2.2 About 89% of the recoverable reserves ofBauxite is of metallurgical grade. Orissa, AndhraPradesh, Madhya Pradesh, Gujarat, Maharashtraand Bihar are the principal States where Bauxitedeposits are located in India. Major Bauxitereserves are concentrated in the East CoastBauxite deposits of Orissa and Andhra Pradesh.

ALUMINA

3.1 The annual installed capacity for productionof Alumina in the country is at Table 1.

TABLE 1

(Unit in tonne)

CompanCompanCompanCompanCompanyyyyy QuantityQuantityQuantityQuantityQuantity LocationLocationLocationLocationLocation

NALCONALCONALCONALCONALCO 800,000800,000800,000800,000800,000 DamanjodiDamanjodiDamanjodiDamanjodiDamanjodi (Orissa)(Orissa)(Orissa)(Orissa)(Orissa)

BBBBBALCOALCOALCOALCOALCO 200,000200,000200,000200,000200,000 KKKKKorbaorbaorbaorbaorba (Chhattisgarh)(Chhattisgarh)(Chhattisgarh)(Chhattisgarh)(Chhattisgarh)

INDINDINDINDINDALALALALAL 312,000312,000312,000312,000312,000 MuriMuriMuriMuriMuri (Jharkhand: 72,000)(Jharkhand: 72,000)(Jharkhand: 72,000)(Jharkhand: 72,000)(Jharkhand: 72,000)BelgaumBelgaumBelgaumBelgaumBelgaum (Karnataka: 240,000)(Karnataka: 240,000)(Karnataka: 240,000)(Karnataka: 240,000)(Karnataka: 240,000)

HINDHINDHINDHINDHINDALCOALCOALCOALCOALCO 350,000350,000350,000350,000350,000 RenRenRenRenRenukukukukukootootootootoot (Uttar Pradesh)(Uttar Pradesh)(Uttar Pradesh)(Uttar Pradesh)(Uttar Pradesh)

M A L C OM A L C OM A L C OM A L C OM A L C O 50,00050,00050,00050,00050,000 ChennaiChennaiChennaiChennaiChennai (T(T(T(T(Tamil Nadu)amil Nadu)amil Nadu)amil Nadu)amil Nadu)

CHAPTER V

OVERVIEW OF ALUMINIUM, ZINC, LEAD AND COPPER

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3.2 Government has approved the expansionof the capacity of the Bauxite Mines of Nalcofrom 2.4 Millions Tonnes Per Annum (MTPA), to4.8 MTPA and that of the Alumina Refinery from0.8 MTPA to 1.575 MTPA. Currently, the projectis under implementation by Nalco and isprogressing on schedule.

ALUMINIUM

4.1 There are seven smelters with a totalinstalled capacity of 714,000 TPA. Two plantswith a total capacity of 330,000 TPA, belongingto Nalco and Balco, are in the public sector andremaining five are in the private sector.

ALUMINUM PRODUCTION5.1 Aluminium production in India commencedin 1943 with a modest 25,000 TPA capacity,which grew to an installed capacity of 714,000TPA. The five primary producers of Aluminiummetal in the country are given in Table 2.

TABLE 2

PUBLIC SECTOR INSTALLED CAPACITYNALCO 230,000 TPA*BALCO 100,000 TPAPRIVATE SECTORHINDALCO 242,000 TPAINDAL 117,000 TPAMALCO 25,000 TPATotal : 714,000 TPA

*The Government has approved expansion of the capacityof Nalco�s Aluminium Smelter from 230000 TPA to 345000TPA. The project is under implementaion by NALCO and isprogressing on schedule.

5.2 Production of Aluminium by the primaryproducers in the country during the last threeyears is at Table 3.

TABLE 3(In tonne)

CompanCompanCompanCompanCompanyyyyy 1997-981997-981997-981997-981997-98 1998-991998-991998-991998-991998-99 1999-20001999-20001999-20001999-20001999-2000

NALCONALCONALCONALCONALCO 200162200162200162200162200162 146206146206146206146206146206 212663212663212663212663212663

BBBBBA L C OA L C OA L C OA L C OA L C O 8819888198881988819888198 9183991839918399183991839 9134591345913459134591345

HINDHINDHINDHINDHINDA L C OA L C OA L C OA L C OA L C O 200304200304200304200304200304 240926240926240926240926240926 248930248930248930248930248930

INDINDINDINDINDALALALALAL 3882338823388233882338823 4219342193421934219342193 4345843458434584345843458

M A L C OM A L C OM A L C OM A L C OM A L C O 2585325853258532585325853 2453624536245362453624536 2334523345233452334523345

TTTTTOOOOOTTTTTALALALALAL 520612520612520612520612520612 545700545700545700545700545700 619741619741619741619741619741

EXPORTS OF ALUMINIUM

6.1 The quantity of Aluminium and itssecondary products exported by the primaryproducers during the last three years is indicatedin Table 4.

TABLE 4

(In tonne)

CompanCompanCompanCompanCompanyyyyy 1997-981997-981997-981997-981997-98 1998-991998-991998-991998-991998-99 1999-20001999-20001999-20001999-20001999-2000

NALCONALCONALCONALCONALCO 5547555475554755547555475 3986839868398683986839868 9518595185951859518595185

BBBBBA L C OA L C OA L C OA L C OA L C O Ni lNi lNi lNi lNi l Ni lNi lNi lNi lNi l 116116116116116

HINDHINDHINDHINDHINDA L C OA L C OA L C OA L C OA L C O 2620726207262072620726207 2573625736257362573625736 4636946369463694636946369

DEMAND AND CONSUMPTION OF ALUMINIUMBY THE DOMESTIC INDUSTRY

7.1 India was dependent upon imports ofAluminium metal ti l l 1988. With thecommissioning of Nalco�s plant in 1988 a seachange took place and the country which was anet importer of Aluminium became self-sufficient.Consequently, the Aluminium Control Order whichregulated supplies and prices of indigenousAluminium was withdrawn on 1.3.1989. TheTable 5 indicates the domestic consumption,exports and imports of the metal from 1997-98to 1999-2000.

TABLE 5

(In thousand tonne)

DomesticDomesticDomesticDomesticDomesticYYYYYearearearearear ConsumptionConsumptionConsumptionConsumptionConsumption ExporExporExporExporExpor tststststs ImporImporImporImporImpor tststststs

1997-981997-981997-981997-981997-98 542542542542542 8282828282 7070707070

1998-991998-991998-991998-991998-99 567567567567567 7575757575 9595959595

1999-2000 588 120 80

STEPS TAKEN BY GOVERNMENT TO IMPROVEAVAILABILITY OF ALUMINIUM

8.1 To facilitates better availability of the metalin the country, the Govt. of India has permittedfree import of Aluminium under OGL.

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8.2 Custom duty on primary metal andsecondary products is applicable @ 25% ad-valorem (15% ad-valorem on scrap) + surcharge@ 10% of basic duty + 4% SAD. The customduty on scrap is 15% ad-valorem + 10%. Thenet duty currently applicable is 21.91% on scrap,and 33.42% on other items.

8.3 Excise duty on Aluminium and its productshas been gradually reduced and is currently at16% both for the metal and its products.

8.4 Aluminium metal and its down streamproducts have been exempted from the provisionsof compulsory licensing.

8.5 MODVAT credit has been extended to theAluminium industry including petroleum based rawmaterial like CPC and Coal Tar Pitch used in themanufacture of Aluminium.

8.6 Effective from 11.2.2000, the FDI onAluminium industry has been increased from50% to 100%.

ZINC

9.1 Zinc is ranked fourth among metals in termsof consumption after iron, aluminium and copper.About 7.8 million tonne of zinc is consumedworldwide every year. While North and LatinAmerica, Australia, erstwhile Soviet Union States(CIS), East European countries, China, North Koreaare the major contributors in zinc mine production,Europe, North America, China and other countriesin Asia are the major metal producers. In case ofzinc production, Asia has achieved the highestannual compound growth rate of around 29%(from 0.187 to 1.185 million tonne) during 1960-1994 period. Asia�s share in world zinc productionhas almost trebled from the 1960 share of 5.9%to 16.7% in recent years. Zinc consumption ismaximum in galvanising sector.

LEAD

10.1 Among the non-ferrous metals, theconsumption of lead ranks fourth after aluminium,copper and zinc. About 6 million tonne of lead isconsumed worldwide every year. Batteries are

important end use sector for lead and this sector�sshare in the world lead consumption has gone upsignificantly from 49.4% in 1980 to 68.4% inrecent years. In fact, the substantial increase inthis sector has compensated for loss ofconsumption in the other sectors like CableSheathing (due to substitution), gasoline additives,chemicals, etc. (due to environmental and healthregulations). Asia has increased its share in theworld production of lead metal from 5.1% in1960 to 12.7% in 1994. West Europe and Asiaare the net importers of lead concentrate whilethe American continent, Australia, East Europe,China and North Korea are quite delicatelybalanced at present.

LEAD AND ZINC SCENARIO IN INDIA

11.1 The identified zinc and lead resources inthe country are estimated at 383 million tonne.Out of this, 167 million tonne containing 2.17%lead and 8.16% zinc fall under category ofminieable reserves. The bulk of the lead-zincdeposits occur in Rajasthan and are under lease/exploitation of HZL. A major multi-metal world-class deposit of zinc, lead and associated metalsis in Rampura-Agucha belt in Bhilwara District ofRajasthan, which has estimated ore reserves of60.35 million tonne containing 13.48% zinc and1.93% lead.

11.2 The present smelting capacities for zincand lead metal in the country are 1,82,000 TPAand 67,000 TPA respectively. The break-up ofthese capacities is indicated at Table 6.

TABLE 6

(Unit TPA)

ZincZincZincZincZinc LeadLeadLeadLeadLead

Hindustan Zinc Limited (HZL)Hindustan Zinc Limited (HZL)Hindustan Zinc Limited (HZL)Hindustan Zinc Limited (HZL)Hindustan Zinc Limited (HZL) 152000152000152000152000152000 4300043000430004300043000

Binani Industries Limited (BIL)Binani Industries Limited (BIL)Binani Industries Limited (BIL)Binani Industries Limited (BIL)Binani Industries Limited (BIL) 3000030000300003000030000 -----

Indian Lead Limited (ILL)Indian Lead Limited (ILL)Indian Lead Limited (ILL)Indian Lead Limited (ILL)Indian Lead Limited (ILL) ----- 2400024000240002400024000

TTTTTotalotalotalotalotal 182000182000182000182000182000 6700067000670006700067000

11.3 While HZL is a Public Sector UndertakingBIL and ILL are in the private sector. BIL does not

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l Government has approved setting up of anew zinc smelter of 1,00,000 TPA atKapasan in Chittorgarh district, Rajasthanby HZL.

l Exploration is being carried out to augmentlead and zinc reserves in the country.

PERSPECTIVE ON COPPER

12.1 In the last few years, price of copper wassteadily declining till 1998-1999 but thereaftergradual appreciation has started. The yearwiseaverage LME price per ton of copper is given inTable 8.

TABLE 8

YYYYYearearearearear LME price of copperLME price of copperLME price of copperLME price of copperLME price of copper(US $ per ton)(US $ per ton)(US $ per ton)(US $ per ton)(US $ per ton)

1995-96 2844

1996-97 2257

1997-98 2096

1998-99 1581

1999-2000 1670

2000-2001 1820(Upto December, 2000)

12.2 The known copper resource in India ischaracterised by low volume, narrow width, lowgrade and practical absence of precious metalcontent. With the exception of Malanjkhanddeposit in Madhya Pradesh, no deposit is amenableto low cost surface mining.

12.3 The thrust is, therefore, on exploration foridentification of reserves amenable to economicexploitation. The National Mineral Policyannounced by the Ministry of Mines in March,1993 has thrown open the doors for mineralexploration and exploitation to Private Sectors.HCL had also undertaken a Geological andGeochemical exploration in Gidori and Dhorli areasnear Malanjkhand, Chhattisgarh. The results ofthis exploration were found encouraging and basedon which MECL has been engaged for furtherexploration in these areas.

have any captive mines and produces zinc byprocuring zinc concentrate either from abroad/indigenously at their Alwaye (Kerala) Plant. ILLhas two units at Kolkata and Thane (Maharashtra)having 12000 TPA capacity each. Both units arebased on imported concentrates/scraps. Besidesthese units, both zinc and lead are also producedthrough secondary routes from scrap, dross,residue, etc. Most of the secondary producingunits, especially in lead, are in the unorganizedsector.

11.4 Available data at Table 7 suggest that leadand zinc consumption in the country has registered7% and 6% growth respectively during April-October, 2000 as compared to the correspondingperiod in 1999. Based on anticipated growth invarious sectors of national economy such asenergy, steel, transport, communications, ruralelectrification, construction etc. the annual growthrate for lead and zinc demand during 10th Planwill be 7% and 6% respectively. Datas are givenat Table 7.

TABLE 7

(In Metri c Tonnes)

YYYYYearearearearear Lead DemandLead DemandLead DemandLead DemandLead Demand Zinc DemandZinc DemandZinc DemandZinc DemandZinc Demand7% gr7% gr7% gr7% gr7% gr ooooowthwthwthwthwth 6% gr6% gr6% gr6% gr6% gr ooooowthwthwthwthwth

1999-20001999-20001999-20001999-20001999-2000 1,00,0001,00,0001,00,0001,00,0001,00,000 2,52,0002,52,0002,52,0002,52,0002,52,000

2001-2002 (end of IX plan)2001-2002 (end of IX plan)2001-2002 (end of IX plan)2001-2002 (end of IX plan)2001-2002 (end of IX plan) 1,14,5001,14,5001,14,5001,14,5001,14,500 2,83,0002,83,0002,83,0002,83,0002,83,000

2006-2007 (end of X plan)2006-2007 (end of X plan)2006-2007 (end of X plan)2006-2007 (end of X plan)2006-2007 (end of X plan) 1,60,5001,60,5001,60,5001,60,5001,60,500 3,79,0003,79,0003,79,0003,79,0003,79,000

11.5 To bridge the gap between demand andsupply of lead and zinc metals steps have beeninitiated to increase the production as well as theresource base of these metals in the country.The steps taken in this regard could besummarised as follows :

l The import of lead and zinc metals is underOGL.

l The ban on import of zinc dust has beenlifted.

l HZL is expanding the existing installedcapacities of Vizag and Debari Smeltersby 10,000 TPA each.

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12.4 Due to poor economics of operation, someof HCL�s underground Mines namely Mosaboni,Pathargora and Kendadih, have been closed down.This has resulted into reduction in availability ofindigenous Copper ore. In order to meet therequirement of HCL�s Smelters, the shortfall isbeing met by way of importing Copperconcentrate.

12.5 Copper smelting capacities are expected tomaintain upward trend and by the year 2001-2002 the total indigenous smelting capacity isexpected to increase from the present 2.47 lakhtpa to 3.47 lakh tpa. The existing and proposedsmelting capacities are given at Table 9.

TABLE 9

(In TPA)

Name ofName ofName ofName ofName of ExistingExistingExistingExistingExisting PrPrPrPrPr oposedoposedoposedoposedoposedOrOrOrOrOrganisationsganisationsganisationsganisationsganisations capacitycapacitycapacitycapacitycapacity Capacity bCapacity bCapacity bCapacity bCapacity b yyyyy

2001-20022001-20022001-20022001-20022001-2002

Hindustan Copper Ltd.Hindustan Copper Ltd.Hindustan Copper Ltd.Hindustan Copper Ltd.Hindustan Copper Ltd. 47,50047,50047,50047,50047,500 47,50047,50047,50047,50047,500

Sterlite IndustriesSterlite IndustriesSterlite IndustriesSterlite IndustriesSterlite Industries(India) Ltd.(India) Ltd.(India) Ltd.(India) Ltd.(India) Ltd. 100,000100,000100,000100,000100,000 150,000150,000150,000150,000150,000

Birla CopperBirla CopperBirla CopperBirla CopperBirla Copper 100,000100,000100,000100,000100,000 150,000150,000150,000150,000150,000

TTTTTotalotalotalotalotal 247,500247,500247,500247,500247,500 347,500347,500347,500347,500347,500

12.6 Besides these smelters, HCL has aContinuous Cast Copper Rods Plant at Taloja,Maharashtra having capacity of 60,000 tpa. Itmay be mentioned here that M/s. SWIL Ltd. isyet to establish their production capacity of50,000 tpa and Metdist has backed out fromtheir project of 150,000 tpa.

COPPER SURVEY

13.1 The present copper ore resources areestimated as 740 million tonne averaging 1.20%metal content. Out of this 420 million tonne ofore with an average grade of 1.21% copper, isunder mining lease held by HCL.

13.2 The other important small Mining Units arebeing operated by Sikkim Mining Corporation(SMC) at Rangpo, Sikkim and Hutti Gold MinesLtd. (HGML) at Chitradurga and Kalyani inKarnataka.

13.3 The per capita consumption of refinedcopper metal in India is 0.30 kg. which is verylow against World average of 3 kg. In advancedcountries, per capita consumption is more than10 kg.

13.4 In the wake of liberalisation policy of theGovt. new copper smelters have been installed inPrivate Sector as detailed above.

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INTRODUCTION

1.1 NALCO was incorporated on 7th January,1981 as a fully owned Govt. Company to exploita part of the large deposits of Bauxite discoveredin the East Coast. Aluminium Pechiney of France,a major world leader in the field of alumina-aluminium technology, provided the technologyand basic engineering for bauxite mine, aluminarefinery and smelter. NALCO emerged as the majormanufacturer and largest exporter of Alumina andAluminium in the country. NALCO's entry into

CHAPTER VI-A

MINING AND PROCESSING

NATIONAL ALUMINIUM COMPANY LIMITED(www.nalcoindia.com)

the world of export began in January, 1988 witha shipment of 76,000 tonne of Alumina. Sincethen, the Company never looked back.

1.2 NALCO is the first Indian Company to beregistered with London Metal Exchange (LME).The Company has also received ISO 9002 and14001 certification for all its units viz. Mines,Alumina Refinery, Aluminium Smelter and PowerPlant. As a Star Trading House, NALCO hasemerged as the largest integrated Bauxite-Alumina-Aluminium Complex in Asia.

Environment Friendly Captive Power Plant of NALCO at Angul

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1.3 NALCO products are sold in about 30countries world-wide including U.K., USA, France,Norway, Italy, Switzerland, Belgium, Brazil, Russia,Australia, China, Japan, etc.

1.4 The spectrum of operations of NALCOincludes Bauxite Mines located on PanchpatmaliHills in the Koraput District of Orissa, a fullymechanised opencast mine of 24 lakh TPAcapacity is under operation since 1985, servingfeed stock to Alumina Refinery located in thefoot hills. The capacity has been expanded to 48lakh TPA from December, 1999. The AluminaRefinery of 8.0 lakh TPA is in operation since1986 located in the picturesque valley ofDamanjodi. The capacity is being expanded to15.75 lakh TPA and this is scheduled to becompleted by March,2001.

1.5 NALCO's various production units, theirlocation and installed capacities, both existingand after expansion are given at Table 1.

TABLE 1

UnitsUnitsUnitsUnitsUnits LocationLocationLocationLocationLocation ExistingExistingExistingExistingExisting Capacity afterCapacity afterCapacity afterCapacity afterCapacity afterCapacityCapacityCapacityCapacityCapacity ExpansionExpansionExpansionExpansionExpansion

BauxiteBauxiteBauxiteBauxiteBauxite MinesMinesMinesMinesMines PPPPPancancancancanc hpatmalihpatmalihpatmalihpatmalihpatmali 2.4 MTP2.4 MTP2.4 MTP2.4 MTP2.4 MTP AAAAA 4.84.84.84.84.8 M T PM T PM T PM T PM T PAAAAA

AluminaAluminaAluminaAluminaAluminaRefinerRefinerRefinerRefinerRefiner yyyyy DamanjodiDamanjodiDamanjodiDamanjodiDamanjodi 0.8 MTP0.8 MTP0.8 MTP0.8 MTP0.8 MTP AAAAA 1.5751.5751.5751.5751.575 M T PM T PM T PM T PM T PAAAAA

SmelterSmelterSmelterSmelterSmelter PlantPlantPlantPlantPlant AngulAngulAngulAngulAngul 2,30,0002,30,0002,30,0002,30,0002,30,000 TPTPTPTPTPAAAAA 345000345000345000345000345000 TPTPTPTPTPAAAAA

CaptiveCaptiveCaptiveCaptiveCaptivePPPPPooooowerwerwerwerwer Plant Plant Plant Plant Plant AngulAngulAngulAngulAngul 720 MW720 MW720 MW720 MW720 MW 960 MW960 MW960 MW960 MW960 MW

PPPPPororororor t Ft Ft Ft Ft Facilitiesacilitiesacilitiesacilitiesacilities VizaVizaVizaVizaViza ggggg 3,75,000 tpa3,75,000 tpa3,75,000 tpa3,75,000 tpa3,75,000 tpa

(Alumina Expor(Alumina Expor(Alumina Expor(Alumina Expor(Alumina Expor t)t)t)t)t)

146000 tpa146000 tpa146000 tpa146000 tpa146000 tpa(Caustic Soda(Caustic Soda(Caustic Soda(Caustic Soda(Caustic Soda

LLLLLyyyyye Impore Impore Impore Impore Impor t)t)t)t)t)

PHYSICAL PERFORMANCE :

2.1 The production of the Company during thelast two years and 2000-2001 (upto December,2000) is given at Table 2.

TABLE 2

Sl.Sl.Sl.Sl.Sl. PrPrPrPrPr oductoductoductoductoduct UnitUnitUnitUnitUnit 1998-1998-1998-1998-1998- 1999-1999-1999-1999-1999- TTTTTararararar gggggetetetetet 2000-012000-012000-012000-012000-01 2000-012000-012000-012000-012000-01No.No.No.No.No. 19991999199919991999 20002000200020002000 fffffororororor ActualsActualsActualsActualsActuals Estima-Estima-Estima-Estima-Estima-

ActualActualActualActualActual ActualActualActualActualActual 2000-2000-2000-2000-2000- uptouptouptouptoupto ted Jan-ted Jan-ted Jan-ted Jan-ted Jan-20012001200120012001 31-12-200031-12-200031-12-200031-12-200031-12-2000 MarMarMarMarMar..... 01 01 01 01 01

11111 22222 33333 44444 55555 66666 77777 88888

A.A.A.A.A. PR PR PR PR PRODUCTIONODUCTIONODUCTIONODUCTIONODUCTION

11111 BauxiteBauxiteBauxiteBauxiteBauxite M TM TM TM TM T 28062882806288280628828062882806288 28224642822464282246428224642822464 28500002850000285000028500002850000 19111691911169191116919111691911169 9388093880938809388093880

22222 CalcinedCalcinedCalcinedCalcinedCalcinedAluminaAluminaAluminaAluminaAlumina M TM TM TM TM T 894500894500894500894500894500 886000886000886000886000886000 950000950000950000950000950000 685400685400685400685400685400 2446024460244602446024460

33333 AluminiumAluminiumAluminiumAluminiumAluminiumCast MetalCast MetalCast MetalCast MetalCast Metal M TM TM TM TM T 146206146206146206146206146206 212663212663212663212663212663 218000218000218000218000218000 170567170567170567170567170567 54405440544054405440

44444 Net gNet gNet gNet gNet g en.en.en.en.en.FrFrFrFrFr om CPPom CPPom CPPom CPPom CPP M UM UM UM UM U 35883588358835883588 39853985398539853985 41004100410041004100 2950.062950.062950.062950.062950.06 1050.001050.001050.001050.001050.00

B. SALESB. SALESB. SALESB. SALESB. SALES

11111 AluminaAluminaAluminaAluminaAlumina M TM TM TM TM T 610940610940610940610940610940 479620479620479620479620479620 525000525000525000525000525000 338907338907338907338907338907 1520015200152001520015200ExporExporExporExporExpor ttttt

2.2.2.2.2. AluminiumAluminiumAluminiumAluminiumAluminiumExporExporExporExporExpor ttttt M TM TM TM TM T 3986539865398653986539865 9518595185951859518595185 100000100000100000100000100000 9114391143911439114391143 29002900290029002900

3.3.3.3.3. DomesticDomesticDomesticDomesticDomesticMetal SaleMetal SaleMetal SaleMetal SaleMetal Sale M TM TM TM TM T 9857398573985739857398573 120171120171120171120171120171 118000118000118000118000118000 7885378853788537885378853 26002600260026002600

4.4.4.4.4. TTTTTotalotalotalotalotalMetal SaleMetal SaleMetal SaleMetal SaleMetal Sale M TM TM TM TM T 138438138438138438138438138438 215356215356215356215356215356 218000218000218000218000218000 169996169996169996169996169996 55005500550055005500

5.5.5.5.5. PPPPPooooower tower tower tower tower toGRIDCO #GRIDCO #GRIDCO #GRIDCO #GRIDCO # M UM UM UM UM U 920920920920920 595595595595595 809809809809809 291.18291.18291.18291.18291.18 108.00108.00108.00108.00108.00

FINANCIAL PERFORMANCE

3.1 The operating results of the Companyduring the last two years and 2000-2001 (uptoDec. 2000) are given at Table 3.

TABLE 3(Rs.in crore)

Sl.Sl .Sl .Sl .Sl . DetailsDetailsDetailsDetailsDetails 1998-991998-991998-991998-991998-99 1999-001999-001999-001999-001999-00 TTTTTararararar gggggetetetetet ActualsActualsActualsActualsActuals Estima-Estima-Estima-Estima-Estima-No.No.No.No.No. ActualActualActualActualActual ActualActualActualActualActual fffffororororor uptouptouptouptoupto ted Jan-ted Jan-ted Jan-ted Jan-ted Jan-

2000-012000-012000-012000-012000-01 Dec.Dec.Dec.Dec.Dec. MarMarMarMarMar-01-01-01-01-01(BE)(BE)(BE)(BE)(BE) 20002000200020002000 (RE)(RE)(RE)(RE)(RE)

1.1.1.1.1. IncomeIncomeIncomeIncomeIncome 1,722.711,722.711,722.711,722.711,722.71 2,261.612,261.612,261.612,261.612,261.61 2,397.302,397.302,397.302,397.302,397.30 1,856.221,856.221,856.221,856.221,856.22 604604604604604

2.2.2.2.2. Operating CostOperating CostOperating CostOperating CostOperating Cost 1,063.711,063.711,063.711,063.711,063.71 1,234.181,234.181,234.181,234.181,234.18 1,322.521,322.521,322.521,322.521,322.52 930.88930.88930.88930.88930.88 363363363363363

3.3.3.3.3. Interest etc.Interest etc.Interest etc.Interest etc.Interest etc. 38.0638.0638.0638.0638.06 63.4363.4363.4363.4363.43 108.32108.32108.32108.32108.32 71.0771.0771.0771.0771.07 2323232323

4.4.4.4.4. Depreciation&Depreciation&Depreciation&Depreciation&Depreciation&AmorAmorAmorAmorAmortisationtisationtisationtisationtisation 283.11283.11283.11283.11283.11 283.00283.00283.00283.00283.00 313.37313.37313.37313.37313.37 217.75217.75217.75217.75217.75 8080808080

5.5.5.5.5. Net PrNet PrNet PrNet PrNet Pr ofi tofi tofi tofi tofi t 337.22337.22337.22337.22337.22 681.00681.00681.00681.00681.00 653.09653.09653.09653.09653.09 636.52636.52636.52636.52636.52 138138138138138befbefbefbefbef ore ore ore ore ore TTTTTax &ax &ax &ax &ax &Dividend (PBT)Dividend (PBT)Dividend (PBT)Dividend (PBT)Dividend (PBT)

6.6.6.6.6. Net PrNet PrNet PrNet PrNet Pr ofi tofi tofi tofi tofi t 248.25248.25248.25248.25248.25 511.53511.53511.53511.53511.53 511.05511.05511.05511.05511.05 495.52495.52495.52495.52495.52 8383838383after after after after after TTTTTax bax bax bax bax b utututututbefbefbefbefbef ore Divi-ore Divi-ore Divi-ore Divi-ore Divi-dend (Pdend (Pdend (Pdend (Pdend (P AAAAAT)T)T)T)T)

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3.2 The sales performance of the Company aregiven at Table 4. It includes export sales also.

TABLE 4

DetailsDetailsDetailsDetailsDetails UnitUnitUnitUnitUnit 1998-991998-991998-991998-991998-99 1999-20001999-20001999-20001999-20001999-2000 TTTTTararararar gggggetetetetet 2000-012000-012000-012000-012000-01 2000-012000-012000-012000-012000-01ActualActualActualActualActual ActualActualActualActualActual fffffororororor ActualsActualsActualsActualsActuals Estima-Estima-Estima-Estima-Estima-

2000-2000-2000-2000-2000- uptouptouptouptoupto ted Jan-ted Jan-ted Jan-ted Jan-ted Jan-

20012001200120012001 Dec. 00Dec. 00Dec. 00Dec. 00Dec. 00 MarMarMarMarMar-01-01-01-01-01

EXPOREXPOREXPOREXPOREXPORTTTTT

Cal.AluminaCal.AluminaCal.AluminaCal.AluminaCal.Alumina M TM TM TM TM T 610940610940610940610940610940 479620479620479620479620479620 525000525000525000525000525000 338907338907338907338907338907 152000152000152000152000152000

AluminiumAluminiumAluminiumAluminiumAluminium M TM TM TM TM T 3986539865398653986539865 9518595185951859518595185 100000100000100000100000100000 9114391143911439114391143 2900029000290002900029000

TTTTTotal Exporotal Exporotal Exporotal Exporotal Expor ttttt Rs.Rs.Rs.Rs.Rs.EarningEarningEarningEarningEarning CrCrCrCrCr sssss 632.17632.17632.17632.17632.17 1031.641031.641031.641031.641031.64 1133.591133.591133.591133.591133.59 969.95969.95969.95969.95969.95 337337337337337

DOMESTICDOMESTICDOMESTICDOMESTICDOMESTIC

AluminiumAluminiumAluminiumAluminiumAluminium M TM TM TM TM T 9857398573985739857398573 120171120171120171120171120171 118000118000118000118000118000 7885378853788537885378853 2600026000260002600026000

PROJECTS UNDER IMPLEMENTATION

4.1 NALCO is implementing a number ofdownstream projects to manufacture value addeditems like Special Grade Alumina, Zeolite, Galliumetc. The status of these projects is as follows :

Special Grade Alumina :

4.1.1 A 26,000 TPA special Grade Alumina plantat Damanjodi at a capital cost of Rs. 56.78 crorebased on technical knowhow obtained fromAlumina Technology Associates, USA andconsultancy service rendered by Engineers IndiaLimited is expected to be commissioned duringMarch, 2001. The plant is designed to produce atotal of 24 grades of special hydrate and alumina.With in-house expertise, NALCO is already in theprocess of production and test marketing ofseveral grades of special hydrates and aluminaproducts produced from the pilot plant. The specialproducts have been sold to different customers.The Special Products Marketing group providesnecessary technical and marketing services tocustomers for gainful use of the products andmarket development.

Zeolite-A Project :

4.1.2 A 10,000 TPA Detergent Grade Zeolite(Zeolite-A) Plant at Damanjodi, at a capital cost

of Rs. 24.10 crore based on technical knowhowfrom Central Salt & Marine Chemical ResearchInstitute (CMCSRI), Bhavnagar licenced throughNational Research Development Corporation(NRDC), New Delhi and with consultancy servicesrendered by Engineers India Ltd., is scheduled forcompletion during March, 2001. Due tocompetition from sodium tri polly phosphate(presently used in detergents) in the country,marketing of Zeolite-A in domestic market will bea constraint. However, efforts are on for exploringoverseas market for the same.

Gallium Project :4.1.3 A 950 Kg/annum 5N purity GalliumExtraction Plant at Damanjodi at a capital cost ofRs. 12.77 crore based on indigenous technologyand financial assistance to the extent of Rs. 5.54crore coming from associated Government of Indiaagencies viz. DSIR, DST, DRDO and NRDC isunder implementation. The process knowhow isfrom Central Electrochemical Research Institute(CECRI), Karaikudi and Nuclear Fuel Complex(NFC), Hyderabad, licenced through NRDC, NewDelhi and consultancy services rendered by EIL.

Takeover of IAPL :

4.1.4 As a strategic move, NALCO has takenover International Aluminium products Limited(IAPL), on 16.03.2000 a 100% EOU Companywith an estimated project cost of Rs. 292 crore.Prior to 100% takeover, NALCO had 26% equitystake in IAPL. IAPL is a 50,000 TPA cold rolledproduct plant to produce a product mix of castcoils, cold rolled sheets and coils for end use infoils, cans, roll forming of other industries. Theintegration of IAPL operations will benefit NALCOin view of synergies, in several areas. IAPL willremain as a separate 100% EOU unit even aftermerger.

EXPANSION & DIVERSIFICATION

5.1 Mines & Alumina Refinery

5.1.1 NALCO has commissioned the 1st phaseof the expansion of its Alumina Refinery in June,2000 which has taken the production capacity ofRefinery from 8,00,000 TPA to 10,50,000 TPA.

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The final phase of expansion to the level of15,75,000 TPA is scheduled to be completed byMarch, 2001. In the first phase of expansionitself, NALCO has already doubled its bauxiteproduction capacity from 24,00,000 TPA to48,00,000 TPA to meet the ultimate requirementof bauxite ore for the expanded refinery capacity.The captive Port Facilities of the Company atVisakhapatnam which handle bulk import of inputmaterials and export of alumina are being upgradedwith additional facilities to deal with the highervolumes of import and export.

5.1.2 After the expansion, NALCO becomes thelargest alumina producer in Asia with an exportablesurplus of about one million tones per annumafter meeting the captive demands of theexpanded Smelter at Angul. The expansionprogramme in Mines and Refinery envisages anexpenditure of Rs. 1,665 crore. However, throughcareful selection of the technologies, optimumuse of the available infrastructure and propersplitting of various packages coupled withcompetitive bids, NALCO is likely to achievesignificant savings on the projected cost ofexpansion. With the demand scenario expectedto grow further, NALCO's presence in theinternational market with higher volumes ofAlumina is expected to improve the Company'sfinancial performance and result in higher returnson investment.

5.2 Smelter & CPP :

5.2.1 In the metal segment also NALCO is onthe fast track, already implementing an expansionproject which will enhance the smelting capacityfrom the current level of 2,30,000 TPA to3,45,000 TPA. The Captive Power Plant capacityis being increased from 720 MW to 840 MW.This project envisages an investment of Rs. 2,062crore and is scheduled to be completed by May,2002. With the expansion completed, NALCO'sshare in the country's primary Aluminiumproduction capacity will go up from the currentlevel of 32.21 % to about 42%.

5.2.2 The tendering activities for Smelter andCPP - 7th Unit are underway. The work for site

grading and piling work are at advanced stageand are nearing completion. Similarly, the civiland structural tenders for Potline and Power Househave been placed. The Smelter expansion projectis scheduled to be completed by May,2002.

5.2.3 The seventh unit of CPP is scheduled to becommissioned by May,2002. The proposal foraddition of 8th unit of 120 MW at a cost of Rs.497.50 crore (August, 2000 price level) has beenapproved by the Government.

ENERGY CONSERVATION

6.1 The specific energy consumption figuresfor the Company for the last two years are givenat Table 5A & Table 5B.

TABLE 5A

Alumina PlantAlumina PlantAlumina PlantAlumina PlantAlumina Plant UnitUnitUnitUnitUnit NormNormNormNormNorm 1998-19991998-19991998-19991998-19991998-1999 1999-20001999-20001999-20001999-20001999-2000

AAAAAC PC PC PC PC Pooooowerwerwerwerwer K W HK W HK W HK W HK W H 380380380380380 350.26350.26350.26350.26350.26 359.29359.29359.29359.29359.29consumption perconsumption perconsumption perconsumption perconsumption perMT of AluminaMT of AluminaMT of AluminaMT of AluminaMT of Alumina

Fuel OilFuel OilFuel OilFuel OilFuel Oil K GK GK GK GK G 85.385.385.385.385.3 78.1278.1278.1278.1278.12 77.5177.5177.5177.5177.51consumptionconsumptionconsumptionconsumptionconsumptionper MT ofper MT ofper MT ofper MT ofper MT ofAlumina.Alumina.Alumina.Alumina.Alumina.

TABLE 5B

SmelterSmelterSmelterSmelterSmelter UnitUnitUnitUnitUnit NormNormNormNormNorm 1998-19991998-19991998-19991998-19991998-1999 1999-20001999-20001999-20001999-20001999-2000Plant, AngulPlant, AngulPlant, AngulPlant, AngulPlant, Angul

AAAAAC PC PC PC PC Pooooowerwerwerwerwer K W HK W HK W HK W HK W H 14,60014,60014,60014,60014,600 17,72517,72517,72517,72517,725 15,54915,54915,54915,54915,549consumptionconsumptionconsumptionconsumptionconsumptionper MT ofper MT ofper MT ofper MT ofper MT ofcast metalcast metalcast metalcast metalcast metal

Fuel OilFuel OilFuel OilFuel OilFuel Oil K GK GK GK GK G 9595959595 119.05119.05119.05119.05119.05 111.00111.00111.00111.00111.00consumptionconsumptionconsumptionconsumptionconsumptionper MT ofper MT ofper MT ofper MT ofper MT of

cast metal.cast metal.cast metal.cast metal.cast metal.

COMPUTERISATION

7.1 Pursuing the strategic plan oncomputerisation, activities mentioned below weretaken up during the year:

7.1.1 LAN : ATM based campus LAN wasinstalled at Captive Power Plant. WAN :

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Implementation 64KBPS leased data circuitbetween Corporate Office, Smelter,CPP andRefinery, using fiber based DOT link, in progress.

7.1.2 New Servers: Three servers inducted atCorporate Office .

7.1.3 Development server : A dedicated serverfor application development was installed atCorporate Office. Applications/database aredeveloped and tested on this server before beingdeployed on the production servers. Officeproductivity server: This server hosts Officeproductivity tools and applications.

7.1.4 CDSL server : NALCO has signed anagreement with Central Depository ServicesLimited, Mumbai for effecting electronic sharetransfer of NALCO shares. Installation of server,software and network equipment has beencompleted.

7.1.5 Automated backup: DLT based backupsystems have been procured at Corporate Officefor automating backup of all servers beyond officehours, thereby raising availability of servers.

7.1.6 PCs and printers were procured to facilitatecomputing needs of various departments.

7.1.7 Information Management System : Studyon NALCO's Information Management System wascompleted by NALCO Chair Professor from MDI,Gurgaon.

7.1.8 For better usage of IT in various functionalareas such as Finance, HRD, Marketing, MIS,Share Registry, Materials etc the applicationpackages have been developed /converted tographical user environment using PowerBuilder,thus keeping abreast in latest technology.

7.1.9 Facility Management services have beendeployed at Zonal Offices to take care ofcomputing needs . Implementation of commercialpackages at the Zonal Offices is in progress.

7.1.10 Bilingual packages such as Leap Office2000 have been deployed in relevant PCs tofacilitate office work in Hindi.

POLLUTION CONTROL & ENVIRONMENTMANAGEMENT EFFORTS

8.1 The performance of the Company inPollution Control and Environment Managementhas been satisfactory during the year 2000-2001.All the units of NALCO have been meeting thestipulated norms for air & water quality prescribedin the consent given by Orissa State PollutionControl Board(OSPCB) and have been certified toISO 14001. The Surveillance Audits for theseunits and the recertification audit for CaptivePower Plant have been conducted successfully.

8.2 In addition to the above, to assess theimpact of pollution, additional studies had beencarried out from time to time during the past i.e.biological monitoring of flora around Smelter Plantand vegetation survey around Alumina Refinery,both studies by Orissa University of AgricultureTechnology (OUAT). And epidemiological surveyin and around Smelter Plant was done by RegionalOccupational Health Centre, (ROHC), Calcutta.Separate studies had also been carried out byRegional Research Laboratory (RRL), Bhopal andBotanical Department of Utkal University,Bhubaneswar for utilisation of fly ash generatedin Captive Power Plant.

8.3 To enhance the environmental performanceof the Company, installation of a defluoridationplant at Smelter and recycling of ash pondoverflow at Captive Power Plant (CPP) have beencompleted.

8.4 So far 60.88 lakh nos. of trees have beenplanted at different units of NALCO covering anarea of 3000 ha. During the last year,approximately 3.2 lakh trees have been planted.

8.5 As a recognition of excellent performancein the field of Pollution Control and EnvironmentManagement, the Captive Power Plant hasreceived Pollution Control Excellence Award-2000from Orissa State Pollution Control Board(OSPCB).

8.6 The Captive Power Plant of NALCO locatedin Angul, Orissa is a thermal power plant and thewaste fly ash is impounded in two large ashponds. The embankment of one of the ash ponds

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of NALCO's CPP at Angul breached on31.12.2000 which resulted in a flash flood inNandira rivulet. This resulted in sudden floodingof near-by villages down stream who were directlyor indirectly affected.

8.7 Ministry of Mines has ordered anindependent enquiry into the breach of NALCO'sash pond which took place on 31.12.2000.Though NALCO has already appointed an internalCommittee to enquire into the cause of the breach,the Union Ministry of Mines decided that sinceenvironmental issues were involved, anindependent enquiry by experts drawn fromoutside the Company should look into not onlythe cause of the damage, but also the long termsolution to the problem of ash disposal. A threemember Enquiry Committee with 2 experts fromNTPC and 1 from Ministry of Environment andForest has been set up on 8.1.2001 and askedto submit its report within 6 weeks.

RESEARCH & DEVELOPMENT

9.1 NALCO's In-House R&D establishmentsboth at Mines & Refinery Complex, Damanjodiand Smelter & Power Complex, Angul have beenrecognised by DSIR, Ministry of Science andTechnology, Government of India upto 31stMarch, 2003. Some achievements in Process andProduct Development are:

9.1.1 Fully backed by In-house technologicalexpertise, a 600 TPA capacity Special gradeAlumina Pilot Plant has been commissioned at aninvestment of Rs.3.29 crore including financialsupport of Rs.1 crore from DSIR, Government ofIndia. Various range of products as planned, havebeen developed and successfully test marketed.124 MT of Special Grade Alumina and 733 MTof Special Grade Hydrates were sold to theprospective customers.

9.1.2 After successful development of new RareEarth Added Aluminium Alloys for ConductorApplication in the laboratory scale in closecollaboration with RRL, Trivandrum andsubsequently patenting the process in India, pilotscale studies were undertaken utilising the facilities

of DMRL, Hyderabad and BALCO, Korba. Plantscale trials were also carried out at NALCO'sSmelter Plant, Angul and 3 nos of charges of10 tonne each of different Aluminium MetalCompositions were prepared. Testing andcharacterisation of the products are underway.

9.1.3 After successful characterisation of SpentCathode Pot Lining Materials in collaboration withJNARDDC Nagpur, Process Flow Sheet forextraction of valuables have been developed.Indepth analysis of the constituents and suitableapplications of such valuables for its effective re-cycling are under investigation.

9.1.4 Technology Demonstration Project on Effectof Fly Ash on Soil Fertility and Crop Yield coveringan area of 3 acres has been takenup at CPP,Angul in collaboration with RRL, Bhopal and FlyAsh Mission, TIFAC, DST, Government of India.The project is under active implementation andseasonal crops, vegetables and cereals are beingcultivated by using Fly ash in various compositionsmatching with the soil quality.

9.1.5 Wear Resistant Cast Iron from NALCO RedMud and Conversion of NALCO Red Mud intoFerro-Titanium have been successfully completedin laboratory scale in collaboration withDepartment of Metallurgy and Material Science,IIT, Kharagpur. Based on the findings of laboratoryscale studies, Industrial scale trials have also beentaken up and results are more or less in agreementwith the laboratory scale studies.

9.1.6 A Laboratory scale R&D project has beensuccessfully completed in collaboration with RRL,Bhubaneswar for Removal of Oxalates andColouring Materials from NALCO's SodiumAluminate Liquor.

9.1.7 Scores of collaborative R&D projects arebeing taken up with various CSIR laboratoriesand IITs and National Institutes of repute forProcess and Product Development related toAlumina, Aluminium and allied fields.

9.1.8 In-house R&D activities pertaining toDevelopment of Technology for Coated AluminaHydrates, Reduction of Soda content in Alumina

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Hydrate and Calcined Alumina, Production of LightAlumina Hydrate, Studies in high temperaturefurnace for conversion in to Alpha Alumina andStudies on De-colourisation of Aluminate liquorthrough alternate routes have been successfullycarried out in the Mines and Refinery ComplexLaboratory, Damanjodi.

9.1.9 As regards In-house R&D activities inSmelter Plant, Angul, Effects on Anode qualityimprovement, Reduction in Anode Butt Generation,Improvement in recovery of cathode rejectedblocks, Evaluation of effectiveness of low densityAluminium Flouride and Development of Newtypes of Anode Clads have been successfullycarried out.

INDUSTRIAL RELATIONS

10.1 The industrial relations scenario of theCompany, although cordial, was characterized bymulti unionism, acute inter union and intra-unionrivalry. The growth in number of unions in theCompany has been remarkable making the totalnumber of functional unions now 21 (out of which14 are affiliated to various Central Trade UnionOrganisation viz INTUC, BMS, HMS & CITU).

10.2 An uneasy situation is prevailing becauseof the delay in revision of pay/wages and fringebenefits for both executives and non-executives.The delay in wage settlement in turn is becauseof the growth in number of unions with rivalobjectives and the litigation resorted to by theUnions.

PERSPECTIVE PLAN FOR WOMEN'S WELFARE:

11.1 The representation of women employees isrelatively low among the employees of theCompany on account of the mismatch betweenthe nature of job requirement in the Companyvis-a-vis the availability of technically experiencedwomen candidates in the labour market. However,the Company continues to provide equalopportunity to women in employment.

11.2 Apart from providing developmental andfunctional training programmes to the women

employees, the Company's thrust is to developthe women employee towards assertiveness andcourage to deal with the issue of harassment ofwomen at work place. Institutional mechanismthrough conduct rules has also been put in placeto avoid sexual harassment of women.

11.3 As a mark of development in their individualleadership, women executives of the Companyhave got a place as co-ordinator/member ofNational Organizations like Women in Public Sector(WIPS). In addition to this, support in variousforms is extended to members of ladies club/Mahila Samaj for the improvement of the causeof women.

WELFARE OF TRIBALS AND MINORITIES

12.1 The Alumina and Mines units of theCompany are placed in the midst of apredominantly tribal area at Damanjodi. The focusis therefore on the rehabilitation and provision ofamenities for 521 families who have beendisplaced for the establishment of the project.Development of roads, school, college, library,recreation center, ponds, wells and agriculturalland etc have been the hallmark of thedevelopmental works undertaken along with theliteracy development programme on the peripheraltribal dominated villages. Besides, directemployment in NALCO Damanjodi Sector has beenprovided to 425 persons on the basis of one ablebodied person from each displaced family andopportunity is provided to the balance for theirengagement with contractor.

12.2 Adherence to the Presidential Directives onreservation of SC/ST persons in employment hasbeen the basic policy of the Company. There arealso exclusive Cells constituted for the welfare ofthe SC/ST employees besides guidance andinteraction with the welfare associations framedby the SC/ST employees at its various units.

12.3 The Company takes due care towards thesentiment of various minority community with agreater objective of communal harmony. In theselection committees of Group-'C' & 'D' vacanciesa member of minority community is invariably

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associated as a part of recruitment practices.

EMPLOYMENT IN THE COMPANY

13.1 Employment in the Company of SC/ST/EX.SM/PH/ LDP/Minorities as on 31.12.2000 isgiven at Table 6.

TABLE 6

Sl.Sl .Sl .Sl .Sl . GrGrGrGrGroupoupoupoupoup TTTTTotalotalotalotalotal S CS CS CS CS C STSTSTSTST Ex-Ex-Ex-Ex-Ex- P HP HP HP HP H LDPLDPLDPLDPLDP Mino-Mino-Mino-Mino-Mino-NoNoNoNoNo No. ofNo. ofNo. ofNo. ofNo. of S MS MS MS MS M rityri tyri tyri tyri ty

Emplo-Emplo-Emplo-Emplo-Emplo-yyyyyeeseeseeseesees

11111 ExExExExExecutivesecutivesecutivesecutivesecutives 15301530153015301530 174174174174174 7777777777 0909090909 0404040404 1010101010 6565656565

22222 Non-eNon-eNon-eNon-eNon-e xxxxxecutivesecutivesecutivesecutivesecutives 49214921492149214921 915915915915915 10961096109610961096 7979797979 5151515151 17091709170917091709 176176176176176

33333 TTTTTraineesraineesraineesraineesrainees 6363636363 1010101010 1010101010 ----- ----- 3030303030 2323232323

TTTTTotalotalotalotalotal 65146514651465146514 10991099109910991099 11831183118311831183 8888888888 5555555555 17491749174917491749 264264264264264

PROGRESS ACHIEVED WITH REGARD TOWELL BEING OF THE OLDER PERSONSDURING THE YEAR.

14.1 The Company, besides the statutoryretirement benefits viz. Provident Fund, Groupgratuity life assurance scheme, pension etc., hasa contributory scheme for post retirement medicalfacilities to the superannuated employees and alsotheir spouse.

14.2 The Company also provides the recreationalfacilities to the retired employees and their familymembers in its club, community center etc.

DISABILITY ACT 1995

15.1 Notwithstanding the fact that the Companyis established with state-of-the-art technologyrequiring mostly healthy and competent technicalpersonnel, measures are being taken to achieve3% representation in all posts in Group - C&Dand in identified posts in Group-A&B under section33 of the Persons with Disabilities (EqualOpportunities, Protection of Rights and FullParticipation) Act 1995. As on 30.12.2000 thereare 56 Physically Handicapped Persons inemployment of the Company in various identifiedposts constituting 0.86% of the total work force.

15.2 Further keeping in view the limited scopefor recruitment of disabled persons, the Companyhas sought for exemption under referred provisionsof the Act on recruitment of persons in Executivesas well as Non-executive category, particularly inthe technical stream.

MOU RATING

16.1 The MOU rating for last three years is givenat Table 7.

TABLE 7

YYYYYearearearearear MOU RatingMOU RatingMOU RatingMOU RatingMOU Rating

1997-981997-981997-981997-981997-98 1.452 (Excellent)1.452 (Excellent)1.452 (Excellent)1.452 (Excellent)1.452 (Excellent)

1998-991998-991998-991998-991998-99 4.466 (A4.466 (A4.466 (A4.466 (A4.466 (A veraveraveraveravera ggggge*)e*)e*)e*)e*)

1999-20001999-20001999-20001999-20001999-2000 1.42 (Excellent)1.42 (Excellent)1.42 (Excellent)1.42 (Excellent)1.42 (Excellent)

* This was due to potline problem that occurred during theyear.

PROGRESSIVE USE OF HINDI - 2000-2001

17.1 During the year 2000-2001 efforts werecontinued for achieving targets for progressiveuse of Hindi. To encourage noting and drafting inHindi a booklet of Hindi-English notings 'KaryalayaTippanian' was published and distributed.

17.2 Many programmes organised for celebratingRajbhasha Golden Jubilee year at different unitsof the Company.

17.3 At the different units of the Company, Hindifortnight and Hindi day on 14th September wereorganised with a number of programmes. Duringthis period different Hindi competitions wereorganised and in the closing ceremony held on16th September at Corporate Office, prizes weredistributed by Chairman-cum-Managing Director.

17.4 Special issue of the Hindi magazine 'Akshar'was published on the occasion of Hindi Weekcelebration, and the best compositions ofEmployees published has been awarded withprizes.

17.5 Publication of Hindi magazine 'Parichaya'was a regular feature. Efforts were continued to

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improve the get-up and matters of this housemagazine.

17.6 Hindi 'Parichaya' has been declared as thebest house magazine and has been awarded byKendriya Sachivalaya Hindi Parishad on 19thSeptember, 2000 at New Delhi.

17.7 Hindi magazines 'Bhavava' from Angul,'Teen Suman' from Damanjodi and 'PanchapatmaliSamachar' from mines were published regularly.

17.8 At S & P Complex, Angul the Town OfficialLanguage Implementation Committee meetingswere organised regularly under the chairmanshipof NALCO and Deputy Director (Implementation),Deptt. of Official Languages, Ministry of HomeAffairs has attended the meetings and guided themember offices. NALCO's cooperation andguidance was significant in providingencouragement for progressive use of Hindi tothe Central Govt. Offices of this region.

17.9 Bilingual computerisation of different formsused in office has been started by Hindi Cell. 41Forms has been computerised in first phase.

17.10The Drafting and Evidence sub-committeeof Committee of Parliament on Official Languageinspected the Vizag office of the Company on11.09.2000.

17.11The third sub-committee of Committee ofParliament on Official Language inspected theCorporate Office of NALCO on 08.11.2000 andreviewed the status of Official Languageimplementation.

17.12 Till November, 2000 two Hindi workshopsat Corporate Office and one at Angul wereorganised. Rajbhasha Cell has also given facultyassistance at many workshops organised by otherCentral Government offices.

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INTRODUCTION1.1 Bharat Aluminium Company Limited(BALCO) was incorporated on 27th November,1965 with an integrated Alumina / AluminiumComplex at Korba in the district of Korba(erstwhile Madhya Pradesh) now comes underChhattisgarh State. The Alumina Plant has200,000 tonne per annum (TPA) capacity and isbased on Hungarian Technology. The AluminiumSmelter of 100,000 TPA capacity is based onSoviet Technology. The down stream facilities

has capacity to produce 35,000 TPA of ProperziRods, 40,000 TPA of Rolled Products, 7,000TPA of Extrusions and 18,000 TPA of Billets andSlabs etc.1.2 BALCO has another Unit at Bidhanbag, nearAsansol in West Bengal, vested in BALCOfollowing its nationalisation in June, 1984 by theGovt. which then owned it.1.3 As on 31st March, 2000 the AuthorisedCapital of the Company stood at Rs. 500 croreand the subscribed Capital at Rs. 244.42 crore.

CHAPTER VI-B

BHARAT ALUMINIUM COMPANY LIMITED(www.balcoindia.com)

Gas Cleaning Plant of BALCO at Korba

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PRODUCTION PERFORMANCE

2.1 The actual production figures of KorbaComplex and Bidhanbag Unit(BBU) for the lasttwo years along with the target of 2000-01 andactual production figures for April-December, 2000are given at Table 1.

TABLE 1

Production Performance of Korba/BBU(Figures in tonne)

19981998199819981998 19991999199919991999 2000-2000-2000-2000-2000- AprAprAprAprApr ..... to Dec. to Dec. to Dec. to Dec. to Dec. Antici-Antici-Antici-Antici-Antici--99-99-99-99-99 -2000-2000-2000-2000-2000 20012001200120012001 20002000200020002000 patedpatedpatedpatedpated

ActualActualActualActualActual ActualActualActualActualActual TTTTTararararar gggggetetetetet TTTTTararararar gggggetetetetet ActualActualActualActualActual PrPrPrPrPr oduc-oduc-oduc-oduc-oduc-tiontiontiontiontion

2000-012000-012000-012000-012000-01

KKKKKorbaorbaorbaorbaorba 91,84491,84491,84491,84491,844 94,34594,34594,34594,34594,345 95,50095,50095,50095,50095,500 71,54771,54771,54771,54771,547 70,52570,52570,52570,52570,525 94,50094,50094,50094,50094,500CompleCompleCompleCompleComple xxxxx

BidhanbaBidhanbaBidhanbaBidhanbaBidhanba ggggg 2,4152,4152,4152,4152,415 2,9012,9012,9012,9012,901 2,5002,5002,5002,5002,500 1,8801,8801,8801,8801,880 2,1552,1552,1552,1552,155 2,2002,2002,2002,2002,200UnitUnitUnitUnitUnit

FINANCIAL PERFORMANCE

3.1 Financial Performance of the Company isgiven in the Table 2.

TABLE 2

(Rupees in Crore)

DetailsDetailsDetailsDetailsDetails Actual fActual fActual fActual fActual f or theor theor theor theor the TTTTTararararar gggggetetetetet ActualsActualsActualsActualsActualsPrePrePrePrePre vious vious vious vious vious YYYYYearearearearear sssss fffffororororor (Apr(Apr(Apr(Apr(Apr .-.-.-.-.-19981998199819981998 19991999199919991999 2000-2000-2000-2000-2000- Dec.Dec.Dec.Dec.Dec.-1999-1999-1999-1999-1999 -2000-2000-2000-2000-2000 20012001200120012001 2000)2000)2000)2000)2000)

IncomeIncomeIncomeIncomeIncome 923.72923.72923.72923.72923.72 979.14979.14979.14979.14979.14 892.31892.31892.31892.31892.31 647.16647.16647.16647.16647.16

Operating CostOperating CostOperating CostOperating CostOperating Cost 733.93733.93733.93733.93733.93 809.64809.64809.64809.64809.64 680.69680.69680.69680.69680.69 576.31576.31576.31576.31576.31Interest &Interest &Interest &Interest &Interest & 6.306.306.306.306.30 5.825.825.825.825.82 9.009.009.009.009.00 8.148.148.148.148.14TTTTTransactionransactionransactionransactionransactionLossLossLossLossLoss

DepreciationDepreciationDepreciationDepreciationDepreciation 48.7348.7348.7348.7348.73 46.2046.2046.2046.2046.20 55.0155.0155.0155.0155.01 37.2937.2937.2937.2937.29& amor& amor& amor& amor& amor tisationtisationtisationtisationtisation

Net PrNet PrNet PrNet PrNet Pr ofit befofit befofit befofit befofit bef oreoreoreoreore 134.77134.77134.77134.77134.77 116.19116.19116.19116.19116.19 147.61147.61147.61147.61147.61 23.3623.3623.3623.3623.36Income Income Income Income Income TTTTTaxaxaxaxaxand Dividendand Dividendand Dividendand Dividendand Dividend

SALES PERFORMANCE

4.1 During the year ending 31st March, 2000,the Company had made sales turnover of Rs.896.64 crore. It had sold 92,568 tonne of metal.

In the previous year 1998-99 the Company sold93,838 tonne of metal and achieved a turnoverof Rs. 870.96 crore. However, during the currentfinancial year upto December, 2000 the Companyhas sold 70,786 tonne of metal and achieved aturnover of Rs. 727.96 Crore.

ON-GOING PROJECTS, EXPANSION ANDDIVERSIFICATION

5.1 New Cold Rolling Mill:

5.1.1 The New Cold Rolling Mill (NCRM) is beinginstalled at Korba with major equipment from M/s FATA HUNTER, Italy. Erection work of SuperCaster is ready and CRM is being erected. All theassociated facilities like Nitrogen plant, AC andventilation, cooling towers and power distributionetc. are also in advanced stage of completion. Asper the present estimates, the NCRM is now likelyto be commissioned by June 2001.

5.2 Modernisation of Foil Plant at BidhanbagUnit

5.2.1 The tendering process for the modernisationof Foil Plant at BBU are in progress. The total jobhas been planned in 10 packages at an estimatedcost of Rs. 3.87 crore. The LIOs for differentpackages are being placed.

5.3 Development of New Bauxite Mine

5.3.1 The Company is developing two captivemines viz. Mainpat and Bodai Daldali (Kwardha)in M.P. While the production from Mainpat minehas already commenced, the other mine at BodaiDaldali is in the process of development. TheCompany expects to receive necessary clearancesfrom MOEF soon. BALCO had requested M. P.State Govt., to grant permission for 60 hectaresencroachment free Govt. land to start up thepreliminary activities at Bodai Daldali mine. Theprodution at the mine is likely to commence from2001.

5.3.2 Meanwhile the Company is making its allefforts to get mining lease for Jamirapat depositin M.P.

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ENERGY CONSERVATION

6.1 Number of energy conservation measureshave been taken in Alumina, Smelter & FabricationPlants and engineering services.

COMPUTERISATION

7.1 BALCO has been making use of informationtechnology to achieve better productivity. It hasput up its own web site that has linkage with e-mail. The Information Technology is also beingmade use of in some other areas.

7.2 Smelter process control.

7.2.1 Smelter pots are monitored bymicroprocessor based equipment (CELTROL).Information regarding voltage is collected bysensors and passed on to CELTROL throughcommunication buffers which in turn passinformation to a supervisory computer.

7.2.2 The supervisory computer, which is a Unixbased server, is networked through thicknet toshop floor terminals. Voltage is controlled fromset parameters through anode movement.

7.2.3 Supervisory computer also generatesexception reports when set parameters areviolated. Anode effect, duration of tapping canbe controlled by setting proper parameters. Allreports become available to terminals on the shopfloor.

7.2.4 There is voice annunciation system(VORTAX) which announces (automatically inHindi ) the anode effect in all 8 rooms for thebenefits of operators, the pots to be attended orwhere anode effect is expected. It also helps inmaintaining certain minimum level of hot metal inthe pots which has improved productivity. Anotheradvantage of this system is quick restoration ofthe cells after power trips.

7.3 Marketing

7.3.1 The whole gamut of marketing activity hasbeen computerised. BALCO has implemented afully integrated on line marketing system usinglocal area network (LAN) and wide area network(WAN). Activities of Regional Marketing Offices,

like receiving inquiries, purchase order,confirmation of orders (CO), financial instruments(FI) etc. are computerised.

7.3.2 Necessary information like, on ordering &financial arrangement is sent to Korba using dialup modems on WAN. The main server (computer)is installed at Korba which processes theinformation and generates manufacturing programand production plan. It receives input like,production of finished goods, receipt of qualitytest results etc.

7.3.3 It generates dispatch slip, invoice, exercisegate pass, customer ledger etc. Informationregarding finished goods inventory, despatch,invoiced raised, customer ledger is made availableto regional marketing offices.

7.3.4 The server at Korba is Compaq P-III 500MHz, 1 GB RAM, 2x9 GB hard disk drive with 15terminals spread over production planning dept.,marketing coordination cell, quality test laboratory,shop floors, dispatch, sales accounting group.The software is UNIX and database is Oracle.

7.3.5 At the regional offices, it is Pentium PCswith window and Power Builder at the front end.

POLLUTION CONTROL AND ENVIRONMENTPROTECTION MEASURES

8.1 Overhauling and monitoring of performanceof ESPs.

8.2 Monitoring and corrective action formaintaining pH, Oil, Fluorine (F) gas etc. in variouseffluents.

8.3 Covered shed for storage of Spent PotLining (hazardous waste) was constructed forreducing Fluorine contents in Smelter & AnodePaste Plant effluents.

8.4 Horticulture development work and treeplantation was carried out in open spaces insidethe plant premises.

8.5 Environmental and Pollution controlawareness has been enhanced by conductingvarious programmes among the employees.

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SALIENT ASPECTS OF THE WORK BEINGDONE BY ADVISORY BOARD/ COUNCILS

9.1 BALCO is presently availing of the technicalknow-how and other related services fromJawaharlal Nehru Aluminium Research,Development & Design Centre (JNARDDC),National Environmental Engineering ResearchInstitute (NEERI), Nagpur and Central GlassCeramic Research Institute (CGCRI), Calcutta.

RESEARCH AND DEVELOPMENT

10.1 The research and development activities atBALCO are a continuing phenomenon aimed atimproving the production performance and qualityof its products.

10.2 The Company has been successful inmeeting stringent requirements of the defenceresearch organisations and has proved its mettletime and again. During 1999-2000 the Companyhas developed Al-Zn-Mn alloy for armoured plateas per defence specification.

10.3 BALCO's extensive laboratory facilities aremanned by competent technical people. Thefunctions of laboratory include exploration andproduction samples assaying for the mine,production and quality control for alumina, smelterand fabrication plants and monitoring of theenvironment. The samples from various stages ofproduction starting from bauxite grinding, variousstages of alumina production, smelter hot metaland fabricated products are also analysed to havestrict quality control on all incoming and outgoingmaterials.

INDUSTRIAL RELATIONS

11.1 The industrial relations remained cordialduring the year under review. Interactions withthe Unions were maintained on continous basis.The most predominant event occupying the mindsof all the Unions, Associations and employees isthe issue of disinvestment of the Company. Allthe Unions are active on this issue.

11.2 The pay scales of executives/officersfollowing IDA pattern have been recently revisedw.e.f. 1.1.1997 in accordance with the guidelines

issued by the Department of Public Enterprises,Govt. of India.

PERSPECTIVE PLAN FOR WOMEN

12.1 Women employees of BALCO are beinggiven all the statutory and normal benefitsincluding operation of Creche for their children.Seminars and workshops are being organisedespecially for participation of women employeesand delegations are also being sent to outsideseminars and programmes.

WELFARE OF TRIBALS & MINORITIES

13.1 Company has shown a serious concern forthe welfare of tribal and minorities many of whomare land-oustees from inception of the Company.Emphasis has been placed on their rehabilitation,induction into the Company, imparting of adulteducation to them, initiation into sports, providingfree medical check up, helping them with medicaltreatment and providing medicines, organisingfamily welfare activities and eye camps andcultural programmes. The Company has shownparticular interest in preserving and encouragingtheir cultural values and heritage. Culturalprogrammes are regularly organised to populariseand preserve their folk music and theatre art. TheCompany has extended financial assistance andalso infrastructural facilities for construction ofpermanent tar roads connecting Parsabhata andRogbahari vil lages apart from providinghandpumps, streetlights and approach roads tothe villages inhabited by tribal population.

LONG SERVICE AWARD

14.1 In recognition of the work done, theCompany has awarded long service awards to itsExecutives/workers who have completed 25 yearsof service with the Company.

EMPLOYMENT IN THE COMPANY AS ON31ST DECEMBER, 2000

15.1 The Company is alive to its social objectivesand it has been making all out efforts to induct

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SC/ST & OBC candidates for maintaining theirdue representation in line with the directives issuedby the Government from time to time.

15.2 The employment position in the Companyas on 31st December, 2000 is given at Table 3.

TABLE 3

GrGrGrGrGroupoupoupoupoup TTTTTotalotalotalotalotal S CS CS CS CS C STSTSTSTST Ex-Ex-Ex-Ex-Ex- P HP HP HP HP H LDPLDPLDPLDPLDP Mino-Mino-Mino-Mino-Mino-No.No.No.No.No. S MS MS MS MS M ritiesritiesritiesritiesrities

ExExExExExecutivesecutivesecutivesecutivesecutives 11021102110211021102 6262626262 3838383838 66666 77777 ----- 8787878787

Non-Non-Non-Non-Non- 55025502550255025502 921921921921921 865865865865865 5454545454 1111111111 ----- 392392392392392ExExExExExecutivesecutivesecutivesecutivesecutives

ManaManaManaManaManagggggementementementementementTTTTTraineesraineesraineesraineesrainees ----- ----- ----- ----- ----- ----- -----

ApprenticeApprenticeApprenticeApprenticeApprentice 3131313131 22222 33333 ----- ----- ----- 33333

TTTTTraineesraineesraineesraineesrainees 130130130130130 2727272727 3535353535 ----- ----- ----- 33333

TTTTTotalotalotalotalotal 67656765676567656765 10121012101210121012 941941941941941 6060606060 1818181818 ----- 485485485485485

MOU RATING

16.1 The MOU ratings achieved by the Companyfor the last three years are given at Table 4.

TABLE 4

YYYYYearearearearear MOU RatingMOU RatingMOU RatingMOU RatingMOU Rating

1997-981997-981997-981997-981997-98 VVVVVererererer y Goody Goody Goody Goody Good

1998-991998-991998-991998-991998-99 VVVVVererererer y Goody Goody Goody Goody Good

1999-20001999-20001999-20001999-20001999-2000 GoodGoodGoodGoodGood

PROGRESSIVE USE OF HINDI IN OFFICIAL WORK

17.1 The Company continued its efforts toencourage and popularise the use of Hindi in day-to-day official work. Various programmes fortraining were organised on regular basis.

PROGRESS ACHIEVED WITH REGARD TO THEWELL BEING OF THE OLDER PERSONSDURING THE YEAR

18.1 Post retirement free medical facility is beingprovided in our hospital to our retired employeesand their spouses staying at Korba.

18.2 Contributory scheme of post retirementmedical facility is provided to employees of BALCOand their spouses who are not at Korba.

18.3 Free medical facilites to the inhabitants ofthe adopted villages are being provided by BALCOManagement under Rural Development Programmeto the villagers.

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of MOU 1999-2000 is "Excellent". The authorisedshare capital of HZL is Rs. 500 crore. The paidup capital is Rs. 422.53 crore. The Governmentholds 75.92% of the equity as 24.08% of itsequity was disinvested during the period1991-93. Government has decided to furtherdisinvest 26% equity capital of HZL to a strategicpartner with an appropriate role in management.

1.3 HZL with its Headquarters at Udaipuroperates five lead-zinc Mines with a total lead-zinc ore production capacity of 3.49 million tpa

CHAPTER VI-C

HINDUSTAN ZINC LIMITED(www.hzlindia.com)

Rampura Agucha Mine of HZL in Bhilwara District of Rajasthan

INTRODUCTION

1.1 Hindustan Zinc Limited (HZL) is one of theleading producers of lead and zinc in the country.It was incorporated in January 1966 as a publicsector Company after the take over of theerstwhile Metal Corporation of India Limited, todevelop mining and smelting capacities tosubstantially meet the domestic demand of zincand lead metals.

1.2 HZL is an MOU signing Company since1991-92, with Government. The provisional rating

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and four smelters with combined installed capacityof 152,000 tpa zinc and 65,000 tpa lead, besidesa rock phosphate mine. The Company offers awide range of zinc and lead metal grades to itscustomers, besides a range of by-products.Table-1 and Table-2 depict the mines and smeltersof the Company with corresponding productioncapacity :

TABLE 1

Ore Production Capacity of HZL Mines.

Mines Ore Capacity(TPD)

Zawar Group of Mines Lead-Zinc 4000Disst. Udaipur (Rajasthan)Rajpura -Dariba Mine, Lead-Zinc 2400Distt. Rajsamand (Rajasthan)Rampura Agucha Mine, Lead-Zinc 4500Distt. Bhilwara (Rajasthan)Sargipali Mine, Lead 500Distt. Sundergarh (Orissa)Agnigundala Mine, Lead 240Distt. Guntur(Andhra Pradesh)Maton Mine, Rockphosphate 600Distt. Udaipur (Rajasthan)

TABLE 2

HZL Smelterwise Metal production capacity

Smelters Capacity (TPA)Zinc Lead

Debari Zinc Smelter, 49,000 -Distt. Udaipur (Rajasthan)

Vizag Zinc & Lead Smelter, 33,000 22,000*Distt. Visakhapatnam(Andhra Pradesh)

Chanderiya Lead-Zinc Smelter, 70,000 35,000Distt. Chittorgarh (Rajasthan)

Tundoo Lead Smelter, - 8,000Distt. Dhanbad (Jharkhand)

* Since closed down w.e.f. 24.1.2001.

PHYSICAL PERFORMANCE HIGHLIGHTS(APRIL-DEC., 2000)

2.1 The performance highlights between April2000 and December 2000.

l MOU performance rating provisionallyworks out to �Excellent�.

l Net Profit earning (PBT) of Rs. 201.00crore, compared to the budget of Rs.115.18 crore.

l Sales turnover of Rs. 1183.65 crore,compared to the budget of Rs. 1112.70crore.

l Lead-Zinc concentrate production at 108%of the target.

PHYSICAL PERFORMANCE

3.1 The Physical performance of the Companyis at Table-3.

TABLE-3

(Figures in tonne)

PrPrPrPrPr oductoductoductoductoduct 1998-991998-991998-991998-991998-99 1999-20001999-20001999-20001999-20001999-2000 TTTTTararararar ggggget fet fet fet fet f ororororor 2000-20012000-20012000-20012000-20012000-2001ActualsActualsActualsActualsActuals ActualsActualsActualsActualsActuals 2000-20012000-20012000-20012000-20012000-2001 ActualsActualsActualsActualsActuals

uptouptouptouptouptoDec.2000Dec.2000Dec.2000Dec.2000Dec.2000

Lead-ZincLead-ZincLead-ZincLead-ZincLead-ZincOreOreOreOreOre 26448832644883264488326448832644883 27406122740612274061227406122740612 25280002528000252800025280002528000 19395321939532193953219395321939532

Lead-ZincLead-ZincLead-ZincLead-ZincLead-ZincConc.Conc.Conc.Conc.Conc. 412617412617412617412617412617 422127422127422127422127422127 391220391220391220391220391220 305057305057305057305057305057

ZincZincZincZincZinc 141806141806141806141806141806 145796145796145796145796145796 149500149500149500149500149500 107513107513107513107513107513

MetalMetalMetalMetalMetal

LeadLeadLeadLeadLead 3901039010390103901039010 3512035120351203512035120 3350033500335003350033500 2554825548255482554825548

MetalMetalMetalMetalMetal

3.2 The Lead-Zinc ore and concentrateproduction are estimated at 100% and 101%respectively of the annual targets.

3.3 Zinc and lead metal production areestimated at 100% and 102% respectively ofthe annual targets during the current year.

FINANCIAL PERFORMANCE

4.1 The financial performance of the Companyis given at Table-4.

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TABLE-4

(Rs. in crore)

DetailsDetailsDetailsDetailsDetails 1998-991998-991998-991998-991998-99 1999-001999-001999-001999-001999-00 AnnAnnAnnAnnAnnual Budgual Budgual Budgual Budgual Budg etetetetet 2000-012000-012000-012000-012000-01ActualsActualsActualsActualsActuals ActualsActualsActualsActualsActuals EstimateEstimateEstimateEstimateEstimate ActualsActualsActualsActualsActuals

2000-20012000-20012000-20012000-20012000-2001 UptoUptoUptoUptoUpto(BE)(BE)(BE)(BE)(BE) 31-12-200031-12-200031-12-200031-12-200031-12-2000

IncomeIncomeIncomeIncomeIncome 1346.051346.051346.051346.051346.05 1565.461565.461565.461565.461565.46 1537.841537.841537.841537.841537.84 1183.651183.651183.651183.651183.65

OperatingOperatingOperatingOperatingOperatingCostCostCostCostCost 1120.911120.911120.911120.911120.91 1304.401304.401304.401304.401304.40 1303.401303.401303.401303.401303.40 932.41932.41932.41932.41932.41

InterestInterestInterestInterestInterest 15.2415.2415.2415.2415.24 10.4610.4610.4610.4610.46 5.055.055.055.055.05 3.143.143.143.143.14

DepreciationDepreciationDepreciationDepreciationDepreciation &&&&&AmorAmorAmorAmorAmortisationtisationtisationtisationtisation 58.7558.7558.7558.7558.75 68.4368.4368.4368.4368.43 69.3969.3969.3969.3969.39 47.1047.1047.1047.1047.10

Net PrNet PrNet PrNet PrNet Pr ofi tofi tofi tofi tofi t 151.15151.15151.15151.15151.15 182.17182.17182.17182.17182.17 160.00160.00160.00160.00160.00 201.00201.00201.00201.00201.00(PBT)(PBT)(PBT)(PBT)(PBT)

4.2 During the period April-December, 2000,the Company had a record sales turnover of Rs.1183.65 crore and again a record profit beforetax of Rs. 201.00 crore as compared to budgetof Rs. 1112.70 crore and Rs.111.39 crorerespectively. The Company expects to end theyear with a profit (before tax) of Rs.176 croreand turnover of more than Rs.1700 crore.

SALES PERFORMANCE

5.1 Zinc sales during the period April-December,2000 was 103830 tonne. It is expected thatsale for the year will be 144000 tonne. Leadmetal sale during the period April-December, 2000was 25947 tonne and for the year 2000-2001 itis expected to be 34,000 tonne. The Companyexpects to export about 80,000 tonne zincconcentrate during the current financial year.

PROJECTS

6.1 Kayar lead-zinc prospect, Dist. Ajmer,Rajasthan

6.1.1 HZL acquired mining lease for an area of4.875 sq km. for Kayar lead-zinc prospect, districtAjmer.

6.1.2 In order to delineate the deposit with a fairdegree of confidence and establish firm geologicaland metallurgical parameters for preparation of

techno-economic feasibility report, detailedexploration involving 16800m drilling at anestimated cost of Rs. 12 crore is in progress.

6.1.3 For speedier exploration a high-speed All-Hydraulic Sweden drill machine has beencommissioned. During the period April-December,2000, 3695m drilling has been completed with atotal 5723m since inception. The exploration datagenerated indicate a complex geological behaviourof the deposit. The project is scheduled to becompleted by Sept. 2001 and detailed feasibilityreport by March, 2002 for investment decision.

6.2 Jagpura Gold Prospect, Dist. Banswara,Rajasthan

6.2.1 HZL is continuing its exploration campaignin Jagpura area, distt. Banwara where it holds aprospecting licence over 43.10 sq km. The drillingfor oxidized ore in northwest and northeast blockshas been completed. Exploration is now beingcarried out in the southwest and southeast blocks.A total of 16129 m of drilling has been carriedduring period April-December, 2000. A possibleresource of 1.18 million tonne averaging 1.83 g/tgold in oxidized zone, and 1.41 million tonnewith 3.08 g/t gold in sulphide zone has beenestimated in NW and NE blocks upto a depth of50m.

6.2.2 The drill core composite sample have beensent to M/s. Mintek of South Africa formetallurgical test work. The geological and pre-feasibility study is expected to be completed byMarch, 2001.

6.3 New Zinc Smelter :

6.3.1 The Government has approved setting upof a 100,000 TPA greenfield Zinc Smelter plantby HZL at Kapasan, Chittorgarh Distt. Rajasthanat an estimated cost of Rs. 1203.75 crore. Theplant is expected to be completed in 48 monthsfrom the date of completion of the disinvestmentprocess of HZL. The Company has been authorisedto incur an expenditure of Rs. 9.79 crore duringthe current financial year for acquisition of land,etc. The rest of expenditure would be incurred

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after completion of disinvestment process of HZL.The project would be funded by internal resourcesof the Company and the borrowings.

6.4. Zinc Smelters' Expansion

6.4.1 The expansion of Vizag and Debari ZincSmelters by 10,000 TPA each is in progress.Turn key execution work for expansion has beentaken up by L&T (Madras) for Vizag and NICCO(Calcutta) for Debari.

6.4.2 These projects are likely to be mechanicallycompleted during the quarter January-March,2001.

6.5 Nickel Technology Proving Plant

6.5.1 The Nickel Technology Proving Plant forrecovery of Nickel from low grade lateritic chromiteoverburden dumps at the Sukinda Valley in OrissaState has been commissioned in March, 2000.The plant is in operation to firm up the operatingparameters.

6.6 100 MW Power Plant

6.6.1 An MOU was signed between HZL andRajasthan State Mines & Minerals Ltd., (RSMML)in February, 1997 to set up a 100 MW PowerPlant.

6.6.2 Availability of alternate fuel and sources ofsupply are being collected to identify mosteconomic alternatives.

6.6.3 Studies for preparation of EIA/EMP arecontinuing and Rapid EIA/EMP report is at thefinal stage.

7. INTERNATIONAL CO-OPERATION

7.1 Pac Lang (Vietnam) Joint Venture :

7.1.1 As BRGM�s assignee Selanor was notwilling to have financial participation, the equitysplit in the proposed Pac Lang JV will be HZL-70%, VIGEGO-30%. However, BRGM will beassisting the JV in technical areas on mutuallyagreed terms between HZL & BRGM.

7.1.2 A delegation consisting of representativesfrom Selanor, BRGM and HZL visited Vietnam inOctober, 2000 to hold discussions with VIGEGO

and other Vietnamese Government officials besidesvisiting Pac Lang area for expediting the take offof the project.

7.1.3 HZL has resubmitted PL/EL applicationsalongwith work programme and budget to theMinistry of Industry, Govt. of Vietnam. Afterscrutiny of the applications, an EvaluationCommittee will call HZL for discussions beforegranting the requisite licences to commence thework at Pac Lang.

ENERGY CONSERVATION

8.1 The Company has been adopting variousmeasures as on-going process for conservationof energy in all the units of HZL. The followingmeasures are being continued to give overallsaving in energy at different units of theCompany:-

l Load & energy management.

l Use of energy efficient equipment.

l Optimization of system power factor.

l Sizing of equipment to achieve minimumenergy consumption.

l Plugging of losses of energy by way ofleakages in air/ water & steam line,defective insulation, etc.

l Process improvement / modifications.

l Measurement & monitoring consumptionof various forms of energy.

l Energy audit at regular intervals.

COMPUTERISATION

9.1 Old, obsolete & Non-Y2K compliantPC-XTs/286s/386s have been replaced with latestPentium III based computers.

9.2 E-Mail/Internet on Local Area Network :(HZL�s Intranet) Web server and mail servers aresetup and access is provided to PC users foraccessing the net and sending and receiving themail from a common HZL domain.

9.3 Maintenance, updation and administrationof HZL web sites (hzlindia.com & hzlmetals.com)

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is carried out remotely from HZL head office forconstant updation/improvement of HZL web sites.

POLLUTION CONTROL AND ENVIRONMENTMANAGEMENT EFFORTS

10.1 Solid wastes generated at mining units wereutilized for raising tailing dam height and fillinglow lying areas. Excess waste is being properlystacked and stablized. Regular monitoring of air,water, noise etc. was carried out throughout theyear.

10.2 Nearly 12000 numbers of new saplingswere planted during the year in addition to theexisting trees being kept well maintained at allthe mining units of the Company.

RESEARCH AND DEVELOPMENT ACTIVITIES

11.1 Bioreactor Technologny

11.1.1 In order to mitigate likely adverseenvironmental impact due to storage of largequantity of zinc bearing tails with acid formingtendencies, development of bioreactor technologyhas been taken up to recover zinc in collaborationwith EIL and RRL (B). The project cost estimateis Rs.95 lakh being funded by HZL, DST andMOM with the aim to generate Zn SO4 solutionwith 20-25 gpl Zn. So far a concentration of11 gpl has been achieved with Thiobacillousferrooxidans bacteria in 9K solution. Further workfor improving concentration is in hand.

11.2 Recovery of Germanium

11.2.1 For recovery of Germanium (40-50 ppm)in Waelz Kiln oxide of Visakhapatnam ZincSmelter, it is proposed to have collaboration withC-MET, Hyderabad.

11.3 Manganese Nodule

11.3.1 HZL has been chosen as implementingagency for R&D work and has been entrustedwith the task to put up a 500 kg/day pilot plantfor recovery of value added metals Ni, Co, Cu forocean bed nodules by Department of OceanDevelopment (DOD), GOI. Pilot scale studies were

carried out to test the process flow-sheet for thestarch-Sulphuric Acid Leaching Process developedby CRDL, HZL. LOI for supply and erection ofPMN pilot plant has been released. The plant isexpected to be commissioned by May, 2001.

11.4 Cobalt Metal Recovery

11.4.1 To improve the recovery of metal from40% to 60% and purity of 99% in thedemonstration plant, HZL undertook a project ata cost of Rs.94.54 lakh, of which TIFAC advanceda loan of Rs.40 lakh. The revised 3-stage leachingprocess was developed with BARC andimplemented in the existing solvent extractionplant. Modifications were also made in the solventextraction section. The project was completedsuccessfully in July, 2000.

Salient Aspects of the Work Being done byAdvisory Boards/Councils :

12.1 Joint Consultative Committees arefunctioning in all major units of the Company.The Committee consists of representatives fromworkmen and managament, and the areasdiscussed include production & productivityimprovement, reduction in cost of production etc.The recommendations of the Committee aregenerally implemented.

12.2 In addition to the Joint ConsultativeCommittees, various other Bipartite Committees/Forums on Welfare, Safety, Canteen Management,House Allotment etc. are functioning. Theunanimous recommendations of these Committeesare also generally implemented. The functioningof these Bipartite Forums have created a conduciveclimate for better production/productivity at alllevels.

INDUSTRIAL RELATIONS

13.1 The industrial relations in the Company bythe large had been peaceful and cordial. However,one day token strike was observed by theWorkmen on 15th September, 2000. against thedisinvestment in the Company. Token strike byworkmen of Vizag Unit on 11th May and 23rdOctober, 2000 were also observed opposing

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disinvestment and closure of Lead Plant of theCompany at Vizag respectively.

13.2 Pay scales valid for 10 years w.e.f.1.1.1997 in respect of Executives and in respectof workmen w.e.f. 1.7.1997 have been revised.

13.3 Voluntary Retirement Scheme (VRS) wasnotified for workmen of Zawar Mines, RajpuraDariba Mines and Zinc Smelter Debari, and 559workmen opted were released in April, 2000. Inaddition 35 executives opted for VRS werereleased during the period. Special VRS wasnotified twice for the workmen of Lead Plant,Vizag Unit and 4 workmen opted were releasedin September, 2000. All the employees of leadsmelter of the Company at Vizag opted for VRSand they were disengaged after the payment ofterminal benefits. Now the lead smelter at Vizagstands closed w.e.f. 24.1.2001.

WOMEN WELFARE

14.1 The female employees of the Company aregiven better welfare amenities. They are also beingsent for training, both in-house and outside.Participation by female employees in variousNational Forums is also encouraged.

14.2 To take care of Medical facilities of femaleemployees, the Company has Lady Doctors in itshospitals/dispensaries.

WELFARE OF TRIBALS AND MINORITIES

15.1 Various welfare measures including FreeMedical aid, Drinking Water, School facilities, Co-operative/Provision store facilities etc. are beingavailed/extended to the tribals and minoritiesresiding in the adjacent areas of the units.

EMPLOYMENT IN THE COMPANY

16.1 The manpower employed in the Companyas on 30th September, 2000 was 9482 out ofwhich 1634 belonged to SC and 1321 to ST.

WELL BEING OF THE OLDER PERSONS

17.1 To take care of the medical needs of retiredemployees, a medi-claim policy has been taken

through Unit Trust of India (Senior Citizen UnitPlan) under which the retired employees and theirspouses can get medical treatment/hospitalisationcharges upto Rs. 5.00 lakh.

STATUS OF IMPLEMENTATION OF THEPERSONS WITH DISABILITY ACT, 1995

18.1 The provisions relating to reservation ofvacancies for persons with disability have beennotified to Units for Implementation.

EXPORT / IMPORT PERFORMANCE

19.1 Export

19.1.1 The Company has exported 36,023 tonneZinc Concentrate upto December, 2000 duringthe current financial year. It is expected to exportabout 80,000 tonne Zinc Concentrate during theyear 2000-2001.

Imports(Rs. in lakh)

Import 1999-2000 2000-2001(Estimated)

Raw materials 490.05 1375.00

Components, storesand spare parts 1800.93 1500.31

Capital goods 975.15 3735.44

Total 3266.13 6610.75

MOU RATING :

20.1 The MoU rating achieved by the Companyduring the last three years is given at Table 5.

TABLE-5

Year MOU Rating

1997-98 Excellent1998-99 Very Good1999-2000 Excellent

PROGRESSIVE USE OF HINDI

21.1 100% compliance of Section 3(3) of theOfficial Languages Act has been achieved in allthe units including Head Office.

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21.2 The progress of Hindi correspondence ofthe various units is as follows: HO-38.5%, CRDL-37.5%, Debari Smelter-32.5%, Maton Mine-65%,Zawar Mines-62%, Rajpura Dariba Mine 76%,Cahanderiya Smelter-13.5.%, Rampura AguchaMine-27.5% and Tundoo Smelter-28%

21.3 Non-Hindi speaking units : VizagSmelter-69.%, Agnigundala Mine-13.5%,Sargipalli Mine-31%

21.4 4 employees appeared for Hindi typing and1 for Hindi Stenography exam conducted underHindi Teaching Scheme of the Government

21.5 20 Hindi workshops were organized fromtime to time in all units of the Company in which285 employes took part.

21.6 Hindi weeks have been celebratedeffectively in all the units. On this occasionRajbhasa seminars/ competitions/ Hindi workshopswere organized.

21.7 Active cooperation is extended to UdaipurTown Official Language ImplementationCommittee constituted by Rajbhasa Vibhag (Govt.of India).

21.8 Inspections have been made of one Unit

and Head Office by Rajbhasha InspectionCommittee.

21.9 The branches of kendriya Sachivalaya HindiParishad, New Delhi are active in several unitsincluding Head Office and various competitionshave been organized from time to time.

21.10 Official Language ImplementationCommittees have been formed in all units of theCompany and quarterly meeting are held regularly.

21.11 Rajbhasha Golden Jubilee Year wasconcluded by holding grand and gracefulRajbhasha functions.

21.12 Following number of employees wereawarded under the various incentive schemes :

l Hindi Teaching scheme(Hindi teaching) 15

l Hindi teaching scheme(Hindi Typing/Stenography) 5

l Hindi Cheque incentive scheme. 3

l Monthly allowance scheme forHindi typing/Stenography 57

l Incentive scheme for use of Hindi. 2

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INTRODUCTION

1.1 Hindustan Copper Limited(HCL) wasincorporated on 9th November,1967, under theCompanies Act,1956. It was established as aGovt. of India Enterprise to take over from NationalMineral Development Corpn. Ltd., allplants,projects,schemes and studies pertaining tothe exploration and exploitation of copperdeposits, including smelting and refining, forfulfilling long-term objectives of the nation, viz.Development and growth of copper miningindustry on sound lines and to maximise

indigenous production of copper metal. This is tobe achieved by developing new copper deposits,known or to be discovered, by adoptingappropriate and modern technologies.

1.2 The Government of India nationalised theonly copper producing Company, Indian CopperCorporation Ltd. at Ghatsila in March 1972 andhanded over its management and ownership toHCL.

1.3 In November 1982, the prestigiousMalanjkhand Copper Project comprising of a large

CHAPTER VI-D

HINDUSTAN COPPER LIMITED(www.hindustancopper.com)

A panoramic view of Taloja Copper Project, Maharashtra.

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and fully mechanised open pit mine andConcentrator plant was dedicated to the nation.

1.4 The Continuous Cast Copper Rod plant atTaloja Copper Project of Hindustan Copper Ltd.was commissioned in December,1989 with aninstalled capacity of 60,000 tonne. The Companyhas selected Southwire SCR-2000 technologyusing natural gas as fuel.

1.5 As on 31-12-2000, the Authorised Capitalof the Company stood at Rs. 800 crore and thesubscribed capital at Rs. 543.61 crore.

1.6 Present capacities of HCL's Mines andSmelters are given at Table 1A, 1B and 1C.

TABLE-1A

Mines(In lakh TPA)

Location of MinesLocation of MinesLocation of MinesLocation of MinesLocation of Mines Ore CapacityOre CapacityOre CapacityOre CapacityOre Capacity

Khetri Copper CompleKhetri Copper CompleKhetri Copper CompleKhetri Copper CompleKhetri Copper Comple x,x,x,x,x, 19.519.519.519.519.5RajasthanRajasthanRajasthanRajasthanRajasthan

Indian Copper CompleIndian Copper CompleIndian Copper CompleIndian Copper CompleIndian Copper Comple x,x,x,x,x, 6.96.96.96.96.9JharkhandJharkhandJharkhandJharkhandJharkhand

Malanjkhand CopperMalanjkhand CopperMalanjkhand CopperMalanjkhand CopperMalanjkhand Copper 2020202020PrPrPrPrPr oject,oject,oject,oject,oject, Madh Madh Madh Madh Madh yyyyya Pradesha Pradesha Pradesha Pradesha Pradesh

TTTTTotalotalotalotalotal 46.446.446.446.446.4

TABLE-1B

Smelters

Location of SmelterLocation of SmelterLocation of SmelterLocation of SmelterLocation of Smelter sssss Metal CapacityMetal CapacityMetal CapacityMetal CapacityMetal Capacity

Khetri Copper CompleKhetri Copper CompleKhetri Copper CompleKhetri Copper CompleKhetri Copper Comple x,x,x,x,x, 31000 tonnes per ann31000 tonnes per ann31000 tonnes per ann31000 tonnes per ann31000 tonnes per ann u mu mu mu mu mRajasthanRajasthanRajasthanRajasthanRajasthan

Indian Copper CompleIndian Copper CompleIndian Copper CompleIndian Copper CompleIndian Copper Comple x,x,x,x,x, 16500 tonnes per ann16500 tonnes per ann16500 tonnes per ann16500 tonnes per ann16500 tonnes per ann u mu mu mu mu m

JharkhandJharkhandJharkhandJharkhandJharkhand

TTTTTotalotalotalotalotal 47500 tonnes per ann47500 tonnes per ann47500 tonnes per ann47500 tonnes per ann47500 tonnes per ann u mu mu mu mu m

TABLE-1C

CC Rod Plant

Location of PlantLocation of PlantLocation of PlantLocation of PlantLocation of Plant CapacityCapacityCapacityCapacityCapacity

TTTTTaloja Copper Praloja Copper Praloja Copper Praloja Copper Praloja Copper Pr oject,oject,oject,oject,oject, 60,000 tonnes per ann60,000 tonnes per ann60,000 tonnes per ann60,000 tonnes per ann60,000 tonnes per ann u mu mu mu mu m

MaharashtraMaharashtraMaharashtraMaharashtraMaharashtra

PHYSICAL PERFORMANCE

2.1 The production of ore, metal inconcentrates, refined copper(cathode) and wirerodduring the year 1997-98 to 2000-2001 are givenat Table 2.

TABLE-2

PrPrPrPrPr oductoductoductoductoduct 1997-981997-981997-981997-981997-98 1998-991998-991998-991998-991998-99 19991999199919991999 TTTTTararararar gggggetetetetet 2000-2000-2000-2000-2000- 2000-2000-2000-2000-2000-ActualsActualsActualsActualsActuals ActualsActualsActualsActualsActuals 20002000200020002000 fffffororororor 20012001200120012001 20012001200120012001

ActualsActualsActualsActualsActuals 2000-2000-2000-2000-2000- ActualsActualsActualsActualsActuals Esti-Esti-Esti-Esti-Esti-20012001200120012001 up Dec.up Dec.up Dec.up Dec.up Dec. matematematematemate

20002000200020002000

Ore PrOre PrOre PrOre PrOre Pr o-o-o-o-o- 44964496449644964496 42204220422042204220 31093109310931093109 33503350335033503350 24612461246124612461 33503350335033503350ductionductionductionductionduction(‘000 (‘000 (‘000 (‘000 (‘000 T)T)T)T)T)

Metal inMetal inMetal inMetal inMetal in 4144041440414404144041440 3855338553385533855338553 3346233462334623346233462 3315033150331503315033150 2473824738247382473824738 3315033150331503315033150concen-concen-concen-concen-concen-trates (T)trates (T)trates (T)trates (T)trates (T)

RefinedRefinedRefinedRefinedRefined 4237442374423744237442374 3583435834358343583435834 3846438464384643846438464 3925039250392503925039250 2918829188291882918829188 4000040000400004000040000CopperCopperCopperCopperCopper(Cathode) (T)(Cathode) (T)(Cathode) (T)(Cathode) (T)(Cathode) (T)

WirerWirerWirerWirerWirer ododododod 3148431484314843148431484 3302533025330253302533025 2977829778297782977829778 3000030000300003000030000 2067220672206722067220672 2900029000290002900029000(T(T(T(T(Taloja) (T)aloja) (T)aloja) (T)aloja) (T)aloja) (T)

FINANCIAL PERFORMANCE

3.1 Financial Performance of the Company isgiven at Table 3.

TABLE-3(Rs. in crore)

Sl.Sl.Sl.Sl.Sl. DetailsDetailsDetailsDetailsDetails Actuals fActuals fActuals fActuals fActuals f or theor theor theor theor the TTTTTararararar gggggetetetetet 2000-2000-2000-2000-2000- 2000-2000-2000-2000-2000-No.No.No.No.No. preprepreprepre vious 2 yvious 2 yvious 2 yvious 2 yvious 2 y earearearearear sssss fffffororororor 20012001200120012001 20012001200120012001

1998-1998-1998-1998-1998- 1999-1999-1999-1999-1999- 2000-2000-2000-2000-2000- ActualsActualsActualsActualsActuals Esti-Esti-Esti-Esti-Esti-19991999199919991999 20002000200020002000 20012001200120012001 up toup toup toup toup to matedmatedmatedmatedmated

DecDecDecDecDec ’00’00’00’00’00(Pr(Pr(Pr(Pr(Pr ooooovvvvv.).).).).)

1.1.1.1.1. IncomeIncomeIncomeIncomeIncome 678.61678.61678.61678.61678.61 551.21551.21551.21551.21551.21 627.28627.28627.28627.28627.28 460.52460.52460.52460.52460.52 612.51612.51612.51612.51612.51

2.2.2.2.2. OperatingOperatingOperatingOperatingOperating CostCostCostCostCost 791.61791.61791.61791.61791.61 448.81448.81448.81448.81448.81 586.64586.64586.64586.64586.64 440.47440.47440.47440.47440.47 562.30562.30562.30562.30562.30

3.3.3.3.3. Interest andInterest andInterest andInterest andInterest and 123.91123.91123.91123.91123.91 62.2662.2662.2662.2662.26 60.9160.9160.9160.9160.91 58.6658.6658.6658.6658.66 79.5179.5179.5179.5179.51transaction costtransaction costtransaction costtransaction costtransaction cost

4.4.4.4.4. Depreciation andDepreciation andDepreciation andDepreciation andDepreciation and 62.1162.1162.1162.1162.11 187.60187.60187.60187.60187.60 61.9061.9061.9061.9061.90 45.2145.2145.2145.2145.21 60.2560.2560.2560.2560.25AmorAmorAmorAmorAmortisationtisationtisationtisationtisation

5.5.5.5.5. Net PrNet PrNet PrNet PrNet Pr ofit/ofit/ofit/ofit/ofit/ (51.20)*(51.20)*(51.20)*(51.20)*(51.20)* (147.46)(147.46)(147.46)(147.46)(147.46) (82.17)(82.17)(82.17)(82.17)(82.17) (83.82)(83.82)(83.82)(83.82)(83.82) (89.55)(89.55)(89.55)(89.55)(89.55)(Loss) bef(Loss) bef(Loss) bef(Loss) bef(Loss) bef oreoreoreoreoreincome taxincome taxincome taxincome taxincome taxand dividendand dividendand dividendand dividendand dividend

* includes effect of interest waiver amounting to Rs.155.76crore arising out of Capital Restructuring.

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SALES PERFORMANCE

4.1 The Company achieved a total sale of37285 tonne of copper during the year 1999 -2000. The Company is likely to achieve a totalsale of around 41000 tonne of copper during2000-2001.

PROPOSED DISINVESTMENT IN HCL

5.1 The Central Govt. had approved thefollowing disinvestment strategy for HindustanCopper Limited:-

5.1.1 Phase-I : The Khetri Unit of HCL alongwith Taloja Plant be formed into a separateCompany. The assets of these Units may bevalued and may form 49% contribution from HCLin a new Company in which 51% equity may beinjected by a Strategic Partner.

5.1.2 Phase-II : The remaining portion of HCLcomprising the Indian Copper Complex and theMalanjkhand Copper Project may be restructuredby closure of unviable mines in a phased mannerwith consequent separation of surplus manpowerunder VRS. HCL may then look for one morestrategic partner for 51% disinvestment in theremainder of HCL

5.2 The Deptt. of Disinvestment, Govt. of India,has appointed the IDBI-Sumitomo BankConsortium as Adviser for helping the InterMinisterial Group(IMG) for implementing Phase-Iof disinvestment of HCL.

5.3 The Company has appointed M/s. VaishAssociates and M/s. S.Jalan & Co., Advocatesas Taxation and Legal Advisers respectively.IMG has already finalised the route for the firstphase of disinvestment of HCL and askedM/s. S.Jalan & Co., Legal Adviser to preparethe Draft Investment Agreement, ShareholdersAgreement etc. It is expected that the entirework in connection with the first phase ofdisinvestment of the Company may be completedby 30.6.2001.

STATUS REPORT OF IMPLEMENTATION OFCAPITAL RESTRUCTURING OF HCL

6.1 The Government had earlier approvedCompany's capital restructuring proposal and thesame has already been implemented by theCompany.

6.2 The outstanding Govt. Loan of Rs. 180.73crore as on 31.3.1998 has already been convertedinto 7.5 % Non-cumulative Redeemable Preferenceshares and the share certificate has already beenissued to the President of India.

6.3 The outstanding interest on Govt. Loanamounting to Rs.167.43 crore as on 31.3.1998March,1998 has already been waived and itseffect given in the accounts of the Company.

6.4 Company has raised working capital termloan of Rs. 75 crore twice from IDBI against theCentral Govt. guarantee for meeting its cashlosses. In addition, the Company has raisedanother working capital term loan of Rs. 100crore from ICICI against the Govt. guarantee.

6.5 Govt. sanctioned non-plan loan of Rs. 414crore specifically for separation of surplusmanpower, which was to be given by the Govt.in a phased manner. Till 3.12.2000, the Govt.has released Rs. 280 crore. The Company hasutilized Rs. 260 crore and has 5537 employeesreleased.

ENERGY CONSERVATION

7.1 Copper extraction is an energy intensiveoperation. Special attention is given in makingthe operation energy efficient at all stages startingfrom mining of ore to extraction of metal. Due toenergy conservation awareness and regularmonitoring on consumption of all energy inputs,HCL has been able to achieve the objective ofenergy conservation.

7.2 Constant thrust is also maintained onimprovement of power factor. Improvement inpower factor during last three years and this yearupto December, 2000 is given at Table 4.

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SALIENT ASPECTS OF THE WORK BEINGDONE BY ADVISORY BOARDS/COUNCILS

10.1 In line with the Scheme for Employees'Participation in Management, Joint Councils andShop Councils have been functioning in theprojects of the Company. In the meetings mattersrelating to production facilities, materials economy,operational problems, wastage control, hazards,safety problems, quality improvement, cleanliness,monthly targets of production schedules, costreduction programmes, formulation andimplementation of the work systems, design groupworking, welfare measures etc. are considered.

10.2 Joint Consultative Committee (JCC)consisting of representatives of each recognisedunion at the projects/offices and representativesof the management has been functioning with aview to discuss and review matters of commoninterest concerning the industrial relations, welfare,leave, educational facilities, production policy,safety, productivity, elimination of wastage,optimum utilisation of man and machinery andquality of worklife etc.

10.3 In addition to the above, National JointCommittee for Copper (NJCC) consisting of therepresentatives of the recognised unions and themanagement have been functioning to deal withthe service matters of workmen.

RESEARCH AND DEVELOPMENT ACTIVITIES

11.1 During the year under review HCL continuedto reel under severe financial constraint. In viewof above HCL maintained its focus on developmentand absorption of all technologies to improvequality of finished products, reduce specificconsumption of major inputs and increaseproduction and productivity.

11.2 HCL in its Smelter at KCC during the year,through inhouse expertise successfully developedoperational technology to treat fine size importedconcentrate and to operate the downstream wasteheat boiler always at near constant heat load.

11.2.1 Whereas the former has reducedconcentrate dust carryover from the furnace and

TABLE-4

UnitsUnitsUnitsUnitsUnits PPPPPooooower factorwer factorwer factorwer factorwer factor

1998-991998-991998-991998-991998-99 1999-20001999-20001999-20001999-20001999-2000 2000-2001 2000-2001 2000-2001 2000-2001 2000-2001 (Up to(Up to(Up to(Up to(Up to31-12-2000)31-12-2000)31-12-2000)31-12-2000)31-12-2000)

K C CK C CK C CK C CK C C 0.940.940.940.940.94 0.940.940.940.940.94 0.940.940.940.940.94

ICCICCICCICCICC 0.930.930.930.930.93 0.950.950.950.950.95 0.920.920.920.920.92

M C PM C PM C PM C PM C P 0.990.990.990.990.99 0.990.990.990.990.99 0.990.990.990.990.99

COMPUTERISATION

8.1 There has been further progress incomputerisation in HCL during the current year2000-2001. Most of the system developmentwork started in the year 1999-2000, have beencompleted.

8.2 The computer resources have also beenaugmented in the units and offices, either bypurchasing new machines or by replacing the oldPCs with the advanced version to take care ofincreasing load of work and new jobs.

8.3 HCL website (www.hindustancopper.com)was developed and launched during the currentyear. Integrated system design and developmentis being carried out in a phased manner tostandardise the programs and MIS reports inoffices/units.

8.4 Networking at Corporate office is underprogress and will be completed by March 2001.Networking in other offices and units will be takenup in a phased manner subsequently.

POLLUTION CONTROL AND ENVIRONMENTMANAGEMENT EFFORTS

9.1 Air and Water pollution control facilitiesand plants at all units of the Company areoperated regularly to maintain emissions withinpermissible limits. Monitoring of treated effluentsand gaseous emissions are being carried outregularly.

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thereby reduce frequent stoppages of feed to thefurnace to clean the downstream equipment, thelater has reduced considerably the downtime ofwaste heat boiler and thereby increased plant'sproduction and productivity

11.3 To improve quality of its CC Rod productfrom Taloja Copper Project, following innovationshave been absorbed during the year :

11.3.1 Inhouse development and absorption ofloop controller to ensure tension free bar entry tothe mill.

11.3.2 Realignment of NAPS spray nozzles andinclusion of special chemical doze to reduce dustgeneration during subsequent drawing by down-stream customers using CC Rod produced at TCP.

11.3.3 Developing and introducing new woodenpallet for packing of finished rods to increase itsshelf life and better protection of CC Rod coilsduring transportation.

INDUSTRIAL RELATIONS

12.1 The industrial relations situation in theCompany has been peaceful and harmonious.There had been no mandays lost due to strike orlock-out. The recognized unions of the Companyhad, however, served a strike notice on theCompany on 18.10.2000 on certain demandsincluding revision of wages, withdrawal of theproposal on rolling back of retirement age to58 years, payment of unpaid salary and DA andrestoration of the suspended facilities like LTC,leave encashment etc. All the issues were relatedto the difficult financial position, the Companyhas been passing through and this was explainedto the unions in details during discussionswhich had followed. Finally, on the request ofthe unions, 50% of the remaining DA arrearswere released and the unions refrained fromresorting to strike as they had initially proposed.There were no other irritants in the area ofindustrial relations.

PERSPECTIVE PLAN FOR WOMEN WELFARE

13.1 Implementation of Equal Remuneration Act

13.1.1 In HCL no discrimination is made withregard to sex, caste, creed between male andfemale employees. Persons doing similar natureof job get equal remuneration.

13.2 Equality of opportunity in employment andrecognition of the right to work as fundamentalright guaranteed by the Constitution.

13.2.1 As per Mines Act,1952, employment ofwomen in underground mine is prohibited. In othercases, employment to women is provided. In HCLequal opportunity is provided and no discriminationis made between male and female employees. Inpromotion no discrimination is made and womenare considered at par with men in the Recruitmentand Promotion Rules of the Company.

13.3 Provision of Maternity Benefit Act arestrictly followed in HCL.

13.4 Women employees are provided withnecessary training to equip themselves to operatethe new machines like computers etc.

13.5 Women employees are provided various in-Company training on adult education, workersdevelopment seminars and general developmentprogrammes periodically at unit training centres.Women are also given in-service training.

13.6 Creche facilities wherever necessary areprovided to the women at the Projects.

13.7 Committees headed by women employeesfor looking into the grievance of womenparticularly in regard to sexual harassment at workplace are functioning.

WELFARE OF TRIBALS AND MINORITIES

14.1 The main welfare activities in respect ofTribal and Minorities are the part of 20 PointProgramme of the Company. The activitiesundertaken during the period from April toDecember, 2000 and anticipated from January2000 to March, 2001 are given at Table 5.

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TABLE-5

Actual Anticipated(during (during

April-Dec, January-2000) March,

2001)

(a) Number of SC & STemployees given training

- SC 179 65

- ST 260 76

- Total No. of trainees 2373 509

(b) Vocational Training(Number of Families) 20 20

(c) Safe Drinking Water(Number of beneficiaries) 686 612

(d) Family Planning(Number of beneficiaries) 94 94

(e) Health for All(Number of beneficiaries)

- Pulse polio 5458 3183

- Hepatitis 'B' 1400 600

- Medical Camps 694 Nil

(f) Plantation of trees 25740 200

HUMAN RESOURCES

15.1 Employment in the Company includingSC/ST as on 31-12-2000 is given at Table 6.

TABLE-6

GrGrGrGrGroup ofoup ofoup ofoup ofoup of No. ofNo. ofNo. ofNo. ofNo. of No. ofNo. ofNo. ofNo. ofNo. of % of% of% of% of% of No. ofNo. ofNo. ofNo. ofNo. of % of% of% of% of% ofPPPPPostostostostost EmploEmploEmploEmploEmplo yyyyyeeseeseeseesees S CS CS CS CS C S CS CS CS CS C STSTSTSTST STSTSTSTST

GrGrGrGrGroup Aoup Aoup Aoup Aoup A 10931093109310931093 8686868686 7.877.877.877.877.87 2626262626 2.382.382.382.382.38

GrGrGrGrGroup Boup Boup Boup Boup B 315315315315315 5050505050 15.8715.8715.8715.8715.87 1818181818 5.715.715.715.715.71

GrGrGrGrGroup Coup Coup Coup Coup C 97229722972297229722 12761276127612761276 13.1213.1213.1213.1213.12 14121412141214121412 14.5214.5214.5214.5214.52

GrGrGrGrGroup Doup Doup Doup Doup D 13041304130413041304 369369369369369 28.3028.3028.3028.3028.30 320320320320320 24.5424.5424.5424.5424.54

TTTTTotalotalotalotalotal 1243412434124341243412434 17811781178117811781 14.3214.3214.3214.3214.32 17761776177617761776 14.2814.2814.2814.2814.28

PROGRESS ACHIEVED WITH REGARD TO THEWELL BEING OF THE OLDER PERSONSDURING THE YEAR

16.1 In HCL, employees immediately aftersuperannuation are paid their retirement benefits

which include Provident Fund, Gratuity, LeaveSalary etc as per provisions of the statutes.

16.2 Under the Employees' PensionScheme,1995 which has replaced the employees'Family Pension Scheme,1971, employees and theirspouses including the dependent minor childrenin case of death of the employees/spouses areentitled to pension after the retirement of theconcerned employees/premature death on thebasis of the length of their pensionable servicesand last drawn pay in accordance with theprovisions of the Scheme.

16.3 Under the Hindustan Copper Limited PostRetirement Medical Scheme,1996 (HCL PRMS),all regular employees of the Company, who optfor membership, are entitled to medical benefitsfor themselves and their spouses subsequent totheir retirement on superannuation/completion oftenure as per Unit Trust of India Senior Citizens'Union Plan. Under the Scheme the employees arealso entitled to domiciliary treatment benefits fromthe Company.

16.4 Employees, not covered under the aboveScheme, after retirement are eligible for freetreatment in the Company's hospital/dispensaryfor self and spouse in case they presentthemselves for such treatment. The facility isalso available to workmen who cease to be inemployment on account of permanent totaldisablement and also to the spouse of workmanwho dies while in service.

THE STATUS OF IMPLEMENTATION OF THEPERSONS WITH DISABILITY ACT,1995

17.1 The statutory returns as per Persons withDisability Act, 1995 are sent to the Ministry.Though 100 point roster and 3% reservation inrespect of the physically handicapped aremaintained in the Company, the status ofimplementation of the PWD Act, specially onimplementation of Section 33 regarding reservationof vacancies for persons with disability for GroupsB, C and D may be treated as nil due to non-

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recruitment during April to November,2000 forprecarious financial position of the Company andthe same is expected to continue during the nextpart of the year.

MOU RATING

18.1 The MoU rating for the last three years isgiven at Table 7.

TABLE-7

YYYYYearearearearear MOU RatingMOU RatingMOU RatingMOU RatingMOU Rating

1997-98 - Fair

1998-99 - Fair

1999-2000 - Very Good

PROGESSIVE USE OF HINDI IN OFFICIAL WORK

19.1 Concerted efforts were made to achievethe targets prescribed by the Govt. of India inrespect of progressive use of Hindi. Employeeswere motivated to utilize their working knowledge

of Hindi in day to day official work. Specialemphasis was given to 100% compliance ofSection 3(3) of the Official Language Act. Lettersreceived in Hindi were replied to in Hindi only.

19.2 Incentive scheme for the promotion oforiginating correspondence in Hindi continuedduring the year. Hindi Diwas/Fortnight andworkshops were organised among all of ourprojects/units including Head Office. All thedocuments pertaining to the ParliamentaryCommittee's visit were prepared bilingually. OurHead Office was awarded with a shield byCALTOLIC for remarkable compliance of theOfficial Language Policy.

19.3 Official Language ImplementationCommittees under the chairmanship of Chairman-cum-Managing Director in Head Office and in theunits under the unit Head reviewed the progressof Hindi and its constraints. More than 80%proceedings in the appex level meetings of theCompany were carried out in Hindi.

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BACKGROUND

1.1 History of the Kolar Gold Field mines recordsthat organised mining for gold has been carriedout over 120 years. The systematic mining inKGF was started by M/s John Taylor & Sons in1880. In 1949, each of the gold mining companieswas directed to incorporate a public Company inthe State of Mysore to take over the operationsof the undertaking and its assets. Accordingly,the four Sterling Companies sold their miningproperties to the newly incorporated Rupeecompanies, having a total capital base ofRs. 2.1 crore as on 1st April 1951. The OorgaumMine was found to be unremunerative and theOorgaum Mine Company ceased to be operativefrom Oct., 1953 and its assets were transferredto the Champion Reef Mine. In effect, there werethree companies for the three working mines.The State Government nationalised all the threemines with effect from 29th November, 1956and paid a compensation of Rs. 1.64 crore. InJune 1958, the Government of India decided tostrengthen the gold reserves and directed thatthe gold produced by the Kolar mines be madeover to it. It was agreed in December 1962 thatthe mines be transferred to the CentralGovernment for operation under the Kolar GoldMining Undertakings (KGMU), as a subordinateoffice of the Ministry of Finance. TheAdministrative control was passed on to theMinistry of Steel & Mines in August 1971. It wasincorporated as Bharat Gold Mines Limited (BGML)w.e.f. 1.4.1972 under Companies Act. 1956.

PRESENT SCENARIO

2.1 Ever since its inception, BGML has beenincurring loss and the Government has beenhelping the Company to continue its operations.However, when the net worth of the Companybecame negative, BGML was referred to BIFR in1992. The BIFR held an inquiry under Section 16of the SICA and by its order dated 28.8.1992declared the Company a sick Company as definedunder Section 3(1)(O) of SICA, 1985. BIFRappointed the Industrial Credit and InvestmentCorporation of India (ICICI) as the OperatingAgency. In June 1997, Government, did notaccept the rehabilitation scheme prepared by ICICIas even after infusion of large amount of freshfunds, the viability of the Company was doubtful.Instead, the Government decided to explore thepossibility of rehabilitating BGML through jointventure route and also opened Voulantry RetirmentScheme upto 31.8.1997. The efforts made toidentify a global partner failed as none of biddersin response to the tender invited for the purposewas technically, financially or otherwise capableof undertaking the revival of the Company. BIFRafter following the provisions of SICA 1985,passed the final order on 12.6.2000 concludingthat the Company is not likely to make its networth exceed its accumulated losses within areasonable time while meeting its financialobligations and hence, not likely to become viablein future. Therefore, it was just, equitable and inpublic interest to wind up BGML under section20(1) of SICA, 1985. BIFR forwarded its opinionto the Registrar of Karnataka High Court on30.6.2000.

CHAPTER VI-E

BHARAT GOLD MINES LIMITED

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2.2 The employees of BGML moved AppellateAuthority for Industrial and FinancialReconstruction (AAIFR) against the order dated12.6.2000 passed by BIFR. The AAIFR hasdismissed the appeal filed by the employees upholding the verdict of the BIFR. The employeesunions have filed a number of Writ Petitionsagainst the BIFR/AAIFR orders.

2.3 The Company also approached Ministry ofLabour, Government of India for its closure undersection 25(o) of the Industrial Dispute Act. 1947.After hearing the case, Ministry of Labour videtheir letter dated 29.1.2001 have grantedpermission for the closure of the Company undersection 25(o) of Industrial Dispute Act, 1947w.e.f. 1.3.2001 and has indicated that VSS wouldbe operated in accordance with the decision givenby the Courts.

PRODUCTION PERFORMANCE

3.1 In view of the precarious condition of BGML,it was decided that during 2000-2001 theCompany would be provided financial support forsalary of employees and safety considerations.Accordingly, funds were released for salary andsafety requirments etc. However, gold has beenextracted from the residual ore brought to surfacefor milling by the Company. This activity came toan end in September, 2000. The quantity of oremilled, gold and silver extracted during 2000-2001(April-September, 2000) are given at Table 1.

TABLE-1

UnitUnitUnitUnitUnit ActualActualActualActualActual April-April-April-April-April-1999-1999-1999-1999-1999- SeptemberSeptemberSeptemberSeptemberSeptember20002000200020002000 20002000200020002000

(Actual)(Actual)(Actual)(Actual)(Actual)

Ore MilledOre MilledOre MilledOre MilledOre Milled (tonnes)(tonnes)(tonnes)(tonnes)(tonnes) 138925138925138925138925138925 2140021400214002140021400

Gold ExtractedGold ExtractedGold ExtractedGold ExtractedGold Extracted (kg)(kg)(kg)(kg)(kg) 433.51433.51433.51433.51433.51 65.0665.0665.0665.0665.06

Extraction GradeExtraction GradeExtraction GradeExtraction GradeExtraction Grade (g/t)(g/t)(g/t)(g/t)(g/t) 3.013.013.013.013.01 2.982.982.982.982.98

Silver ExtractedSilver ExtractedSilver ExtractedSilver ExtractedSilver Extracted (kg)(kg)(kg)(kg)(kg) 35.0235.0235.0235.0235.02 5.395.395.395.395.39(b(b(b(b(by-pry-pry-pry-pry-pr oduct)oduct)oduct)oduct)oduct)

FINANCIAL PERFORMANCE

4.1 The authorised share capital of theCompany as on 31.3.2000 is Rs.60 crore and

paid up share capital is Rs.51.06 crore. Theworking results of the Company for the last threeyears alongwith current financial year (April-September, 2000) are shown at Table 2.

TABLE-2

Net Loss(Rs. in Lakh)

1997-981997-981997-981997-981997-98 .......... 3983.403983.403983.403983.403983.40

1998-991998-991998-991998-991998-99 .......... 6531.296531.296531.296531.296531.29

1999-20001999-20001999-20001999-20001999-2000 .......... 9336.619336.619336.619336.619336.61

2000-20012000-20012000-20012000-20012000-2001 .......... 4115.154115.154115.154115.154115.15

April-Sept. (estimated)April-Sept. (estimated)April-Sept. (estimated)April-Sept. (estimated)April-Sept. (estimated)

4.2 Sources of Funding

4.2.1 The Company is continuously incurringlosses and not able to generate any internalresource. However, the Government has providednon plan loan and grant-in-aid to support thesalary, wages and statutory payments by theCompany, etc.

DIVERSIFICATION

5.1. Shaft Sinking & Mine Construction

5.1.1 The Projects & Contracts Divisionestablished in 1973 has been taking contract jobsin shaft sinking and mine construction activitiesfor various mining companies in both coal andmetal mines in the country. The Company wasasked to expedite the completion of the contracts.Two projects in mine construction wing - one inMOIL (shaft sinking/excavation/concreting) is likelyto be completed by February 2001. The anotherproject at HCL site would be continued upto 31stMarch 2001 to meet the contractual obligationsof contract labour.

5.2 In respect of Engineering Services, thecontracts of BEML and SECL are likely to becompleted before March 2001

ACHIEVEMENT DURING 2000-01

6.1 The Sales made upto December 2000 andorders position on hand by end of December 2000are as given at Table 3.

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TABLE-3

(Rupees in Lakhs)

DescriptionDescriptionDescriptionDescriptionDescription OrOrOrOrOrderderderderder sssss SalesSalesSalesSalesSales WWWWWork inork inork inork inork inon handon handon handon handon hand prprprprpr ogressogressogressogressogress

TTTTT.C.T.C.T.C.T.C.T.C.T ..... Drill Rods Drill Rods Drill Rods Drill Rods Drill Rods ----- 17.1517.1517.1517.1517.15 -----

WWWWWorkshop Salesorkshop Salesorkshop Salesorkshop Salesorkshop Sales 121.67121.67121.67121.67121.67 17.8517.8517.8517.8517.85 The job isThe job isThe job isThe job isThe job islikellikellikellikellikel y to bey to bey to bey to bey to becompletedcompletedcompletedcompletedcompleted

shorshorshorshorshor tltltltltl yyyyy

ENVIRONMENTAL PROTECTION

7.1 The tailing sands which are dumped nearHeap Leaching Plant and Nundydroog Mill areprevented from being washed away by makingbunds. In addition to this, gravel was spread overthe Kennedy�s tailing sand dump to prevent airpollution. Tree plantation has also been made onnumber of dumps.

POLLUTION CONTROL

8.1 Domestic Water Treatment

8.1.1 The sewage and effluent water generatedfrom the residential houses are collected in threeoxidation ponds located at strategic points inNundydroog, Champion Reef and NundydroogMine areas. These works have been carried outas per the recommendations of Karnataka StatePollution Control Board and National EnvironmentalEngineering Research Institute.

8.2 Industrial Effluent Treatment

8.2.1 The metallurgical Plant at Mysore Mine isnot generating any effluent since the plant isclosed. The effluent from Metallurgical Plant atNundydroog Mine is now deposited at a lowerlevel and hence no effluent is being allowed toflow. After settlement, water is recovered fromthe effluent.

INDUSTRIAL RELATIONS

9.1 There have been protests against closureof BGML. However, there had been no untowardincident creating law & order situation in KGF.

WELFARE OF SC/ST TRIBALS AND MINORITIES

10.1 There are directives/guidance from theMinistry of Welfare with regard to preparation ofsub-component plan for Schedule Caste and tribalplan for Schedule Tribe. This is linked withrehabilitation of tribals on account of land acquiredfor project. BGML has not acquired any landcausing displacement of tribals for the constructionof projects and hence no plan for rehabilitationhas been drawn.

HUMAN RESOURCES

11.1 Number of personnel in the Company as on31.12.2000 is given at Table 4.

TABLE-4

GrGrGrGrGroupoupoupoupoup TTTTTotalotalotalotalotal S CS CS CS CS C %%%%% STSTSTSTST %%%%%

EmploEmploEmploEmploEmplo yyyyyeeseeseeseesees

AAAAA 101101101101101 2525252525 24.7524.7524.7524.7524.75 44444 3.963.963.963.963.96

BBBBB 2222222222 77777 31.8131.8131.8131.8131.81 ----- -----

CCCCC 19871987198719871987 770770770770770 38.7538.7538.7538.7538.75 1717171717 0.850.850.850.850.85

DDDDD 17631763176317631763 10501050105010501050 59.5559.5559.5559.5559.55 2222222222 1.241.241.241.241.24

TTTTTotalotalotalotalotal 38733873387338733873 18521852185218521852 47.8147.8147.8147.8147.81 4343434343 1.111.111.111.111.11

POWER CONSUMPTION

12.1 The power has been consumed by theCompany for hoisting the already mined ores tothe surface, milling of the ore, extraction of goldupto October 2000, workshop activities, etc..Even after ceasing of economic activities pumpingof water from the mines has been continued forsupplying of water to the town ship of BGML.

PROGRESS MADE IN THE USE OF HINDI INTHE ENTERPRISE

13.1 The Company has made satisfactoryprogress in the propogation of Hindi as per theprovisions of Official Language Act and Rulesmade thereunder. To popularise Hindi amongemployees competitions in Hindi Shorthand, Notingand Drafting, Translation, Comprehension, HindiTypewriting, Letter writing and Essay were

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conducted. The Hindi Diwas was celebrated witha colourful cultural programme on 14.9.2000,which was preceded by a month long programmeconsisting of Hindi Typewriting, Hindi shorthand,Hindi Incentive and Hindi Speech competitions

and other attractive programmes viz., HindiVocabulary, Katha Suman and Sangeeth Sandhya.The Annual Inter-departmental Hindi competitionwas conducted during December, 2000.

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INTRODUCTION

1.1 The Sikkim Mining Corporation (SMC) wasestablished under the Proclamation of then Darbarof Sikkim dated 27th February, 1960, as a jointventure of Govt. of Sikkim and Govt. of Indiawith equity Share Capital ratio of 51:49 forexploration and exploitation of mineral depositsof the State. Since inception, the Corporationhas been experiencing several ups and downs inits performance for various reasons. Soon afterinstallation and starting of Concentrator plant atBhotang Mine, it got submerged with mud/sludge

CHAPTER VI-F

SIKKIM MINING CORPORATION

of floods in 1968 and recovery of the plant tookabout one year. Thereafter, production of complexsulfide ore containing copper-lead-zinc started andsegregated into three concentrates accordingly.The extration of other associated minerals likegold, silver etc. is not being done due to processplant limitation of SMC.

1.2 The authorised capital of the Corporationis Rs. 10 Crore comprising of Rs. 10 lakh shareof Rs. 100 each. As on 31st December 2000,the total paid up share capital for the Corporationis Rs. 7.43 crore out of which Govt. of Sikkim

Panoramic View of Stowing Plant at Bhotang Mine, Sikkim

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TABLE-2(In tonne)

PrPrPrPrPr oduct :oduct :oduct :oduct :oduct : 1998-991998-991998-991998-991998-99 1999-001999-001999-001999-001999-00 2000-2000-2000-2000-2000- ActualActualActualActualActualActualActualActualActualActual ActualActualActualActualActual 20012001200120012001 (up to(up to(up to(up to(up to

TTTTTararararar gggggetetetetet 31-12-2000)31-12-2000)31-12-2000)31-12-2000)31-12-2000)

Ore :Ore :Ore :Ore :Ore : 1543815438154381543815438 1590115901159011590115901 2304023040230402304023040 1633016330163301633016330

Concentrate :Concentrate :Concentrate :Concentrate :Concentrate :

(i) Copper(i) Copper(i) Copper(i) Copper(i) Copper 0092000920009200092000920 0071800718007180071800718 0138801388013880138801388 853.50853.50853.50853.50853.50

(ii) Lead(ii) Lead(ii) Lead(ii) Lead(ii) Lead 0011500115001150011500115 0028400284002840028400284 0015000150001500015000150 195.00195.00195.00195.00195.00

(iii) Zinc(iii) Zinc(iii) Zinc(iii) Zinc(iii) Zinc 0004400044000440004400044 0062600626006260062600626 0018000180001800018000180 176.00176.00176.00176.00176.00

FINANCIAL PERFORMANCE

3.1 Operating Results are at table 3.

TABLE-3(Rs. in lakh)

DetailsDetailsDetailsDetailsDetails ActualActualActualActualActual ActualActualActualActualActual TTTTTararararar ggggget fet fet fet fet f ororororor ActualActualActualActualActual(1998-99)(1998-99)(1998-99)(1998-99)(1998-99) BudgBudgBudgBudgBudgetetetetet BudgBudgBudgBudgBudgetetetetet (up to(up to(up to(up to(up to

1999-001999-001999-001999-001999-00 (2000-01)(2000-01)(2000-01)(2000-01)(2000-01) 31-12-2000)31-12-2000)31-12-2000)31-12-2000)31-12-2000)

IncomeIncomeIncomeIncomeIncome 120.93120.93120.93120.93120.93 162.00162.00162.00162.00162.00 200.00200.00200.00200.00200.00 131.95131.95131.95131.95131.95

OperatingOperatingOperatingOperatingOperating 119.00119.00119.00119.00119.00 168.50168.50168.50168.50168.50 170.82170.82170.82170.82170.82 156.21156.21156.21156.21156.21CostCostCostCostCost

Interest &Interest &Interest &Interest &Interest & 009.59009.59009.59009.59009.59 009.18009.18009.18009.18009.18 009.18009.18009.18009.18009.18 006.84006.84006.84006.84006.84transactiontransactiontransactiontransactiontransactionDepreciationDepreciationDepreciationDepreciationDepreciationand Amorand Amorand Amorand Amorand Amor ti-ti-ti-ti-ti-zationzationzationzationzation 018.97018.97018.97018.97018.97 018.00018.00018.00018.00018.00 020.00020.00020.00020.00020.00 013.36013.36013.36013.36013.36

Net PrNet PrNet PrNet PrNet Pr ofit/ofi t/ofi t/ofi t/ofi t/ (–)(–)(–)(–)(–) 026.62026.62026.62026.62026.62 (–)(–)(–)(–)(–) 033.68033.68033.68033.68033.68 Ni lNi lNi lNi lNi l (–)(–)(–)(–)(–) 44.4644.4644.4644.4644.46Loss befLoss befLoss befLoss befLoss bef oreoreoreoreoreincome taxincome taxincome taxincome taxincome tax& dividend& dividend& dividend& dividend& dividend

ON-GOING PROJECTS

4.1 The Stowing Plant with imported Krebcyclones has been commissioned and in operationw.e.f. 12.6.2000 effectively.

4.2 The Shaft deepening and Equipping workfrom 3rd to 4th level of Bhotang mine has beencompleted and in use from 26.4.2000.

4.3 Mine development works are continuingbelow 5th level to enhance reserve base of oredeposit below river Tista.

4.4 RRL, Bhubneswar has put one Vertical

has paid Rs. 3.41 crore and Govt. of India haspaid Rs. 4.02 crore.

1.3 The Management of the Corporation isvested in a Board of Directors which is headedby a Chairman. There are 7 directors on the Board,3 directors including Managing Director andadditional director are nominated by the CentralGovt. and remaining 3 directors and Chairmanare nominated by the State Govt. ManagingDirector is the Chief Executive of the Corporationand he has been delegated administrative powersfor carrying out day-to-day affairs.

1.4 The bhotang mine operation was earlierconfined to Hill Section but the plunge of orebody has now led to active mining operation belowriver Tista with safe pillar barrier of about 60 m.In view of the above, the mine has beeninstrumented with sophisticated geo-technicalinstrument like LVDT, Extensometer, load cells,vibrating wire stress meter etc. under the technicalguidance of M.R. Cell, IBM, Nagpur and NIRM,Kolar (Karnataka).

1.5 Combined ROM production from the mines(Bhotang & Pacheykhani) is about 75 TPD(Table 1). The Stowing Plant was commisionedin June, 2000. One Core drill machine has beendeployed in Pacheykhani mine to detect erraticnature of ore body for ensuring production/development.

TABLE-1

(In tonne per day)

Location of MinesLocation of MinesLocation of MinesLocation of MinesLocation of Mines Ore capacity (TPD)Ore capacity (TPD)Ore capacity (TPD)Ore capacity (TPD)Ore capacity (TPD) 2000-012000-012000-012000-012000-01

1.1.1.1.1. BhotangBhotangBhotangBhotangBhotang 100100100100100 63.4663.4663.4663.4663.46Multimetal MineMultimetal MineMultimetal MineMultimetal MineMultimetal Mine

2.2.2.2.2. PPPPPacacacacac heheheheheykhaniykhaniykhaniykhaniykhani 2020202020 13.3313.3313.3313.3313.33Copper MineCopper MineCopper MineCopper MineCopper Mine

(Both located in East Sikkim) (Both located in East Sikkim) (Both located in East Sikkim) (Both located in East Sikkim) (Both located in East Sikkim)

PHYSICAL PERFORMANCE

2.1 The production of SMC, as againstthe targets from 1998-99 onwards is given atTable 2.

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Column Flotation Cell at SMC during November,2000 for amenability test to up grade theconcentrates with higher recovery and the testhas been conducted successfully.

EXPANSION AND DIVERSIFICATION

5.1 Expansion

5.1.1 One Stone Crusher will be set up shortlyand is expected to produce commercial stoneschips from Tista river stones from January 2001generating additional revenue for the Company.

5.2 Conversion of zinc concentrate intocommercial ZnSO4 crystal by solar heating wouldbe considered after successful R&D works onleaching by RRL, Bhubaneswar. Similarly,hydrometallurgical route of extracting copper metalfrom copper concentrate would be considered aftersuccessful leaching of the concentrate. RRL,Bhubaneswar, indicated that leaching work inrespect of Zinc concentrate appears to beencouraging because it is dissolving upto 90%.

ENERGY CONSERVATION

6.1 After installation of one 600 KVA L.T.Voltage Controller, significant saving in diesel hasbeen witnessed.

INDUSTRIAL RELATIONS

7.1 Cordial, peaceful and harmonious industrialrelations prevailed between the Management andthe workers of the Corporation. So far there hasnot been any strike and the employees andworkers are quite satisfied.

WOMEN WELFARE

8.1 Women workers/employees are generallyposted on surface works only in Sections likeAdministration, Finance, Store etc. and notemploymed below ground which demands highphysical endurance and has confined environment.

WELFARE OF THE TRIBALS AND MINORITIES

9.1 The interests of the tribals and minoritiesworking in the Corporation are protected.

HUMAN RESOURCES

10.1 Employment of SC/ST/Ex-servicemen andothers as on 31.12.2000 is given at Table 4.

TABLE-4

GrGrGrGrGroupoupoupoupoup TTTTTotal No.otal No.otal No.otal No.otal No. S CS CS CS CS C STSTSTSTST EX-SMEX-SMEX-SMEX-SMEX-SM OtherOtherOtherOtherOther sssss

of emploof emploof emploof emploof emplo yyyyyeeseeseeseesees

ExExExExExecutiveecutiveecutiveecutiveecutive 005005005005005 ----- 0202020202 ----- 003003003003003

Non-ExNon-ExNon-ExNon-ExNon-Ex ecutiveecutiveecutiveecutiveecutive 240240240240240 3535353535 5959595959 44444 142142142142142

TTTTTraineesraineesraineesraineesrainees 001001001001001 ----- ----- ----- 001001001001001

TTTTTotalotalotalotalotal 246246246246246 3535353535 6161616161 44444 146146146146146

POLLUTION CONTROL AND ENVIRONMENTMANAGEMENT EFFORTS

11.1 Mill tailing is used as Stowing material forfilling up the mined out areas which preventsenvironmental degradation. 1800 trees on thesurface have been planted.

SALIENT ASPECTS OF THE WORK BEINGDONE BY ADVISORY BOARD/COUNCIL

12.1 Actively pursued with the State Governmentto relases Equity Share Capital to SMC to matchthe ratio of ownership and to carryout theearmarked capital works without any hitch.

12.2 Approved the proposal to diversify themining activity into related areas like setting upof a Stone Crusher for generating additionalinternal revenue.

12.3 Suggested to conduct Monthly Reviewmeetings of the Managing Director, Chairman andthe Secretary, Department of Mines & Geologyand Qarterly Review Meeting with participationof one more Director from Govt. of India forbetter performance and updating of progress madeby the Corporation.

COMPUTERISATION

13.1 At present one computer has been installedand it is planned to install 2 more computerswith E-mail and Internet connection at ManagingDirector�s office and Finance section to improveproductivity and speed.

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INTRODUCTION

1.1 The Science and Technology (S&T)programme of the Ministry of Mines was initiatedin 1978. Since then a total of 98 projects havebeen completed and 28 are ongoing. The acitivitiesunder the Science and Technology programme ofthe mineral and non-ferrous metal sectors coverthe fields of Geology, Exploration, Mining andEnvironment, Bioleaching, Beneficiation, RockMechanics, Ground control and Non-FerrousMetallurgy.

1.2 The projects are based on (a) Nationalrequirement, (b) Industry requirement, and (c)Requirement of Public Sector Undertakings. Theprojects are approved by the Standing ScientificAdvisory Group (SSAG) of the Ministry under theChairmanship of Secretary (Mines). The Ministryof Mines provides support to differentorganisations as well as the Public SectorUndertakings for implementing the S&TProgramme.

FINANCIAL OUTLAY

2.1 The Outlay for the S&T Programme isRs. 9.00 crore (Budget Support Rs. 5.50 crore)for 2000-01. This has been revised to Rs. 8.05crore (BS Rs. 5.00 crore) in the RE for 2000-01.An outlay of Rs. 9.00 crore (BS Rs. 5.50 crore)has been proposed for 2001-02.

CENTRES OF EXCELLENCE

3.1 Three Centres of Excellence were set upunder the S&T Programme of the Ministry in the

areas of (i) Bauxite, Aluminium and Aluminatechnology, (ii) Rock Mechanics and Groundcontrol and (iii) Occupational health hazards facedby miners due to their long exposure to the miningenvironment. These centres are:

l Jawaharlal Nehru Aluminium ResearchDevelopment and Design Centre, Nagpur.

l National Institute of Rock Mechanics, KolarGoldfield.

l National Institute of Miners' Health, KolarGoldfield.

JAWAHARLAL NEHRU ALUMINIUM RESEARCHDEVELOPMENT AND DESIGN CENTRE(JNARDDC)

4.1 JNARDDC was registered as a society in1987. The objectives of the Institute are toassimilate the technology available in the countryfor production of alumina and aluminium includingaluminium alloys and to develop technicalknowhow and basic engineering. The centre ispresently involved in a number of projects relatedto bauxite, alumina and aluminium.

4.2 Till December, 2000 three projects havebeen completed. Eight projects are ongoing.Seventeen papers were published in nationaljournals/seminars.

4.3 JNARDDC has offered services to BALCO,NALCO, L&T, Premier Spares Pvt. Ltd., DMRL,Silver and Barytes Mining Co., Greece andSaurashtra Calcine and Allied Industries Ltd.,Gujarat.

CHAPTER VII

SCIENCE AND TECHNOLOGY PROGRAMME

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4.4 Three projects approved by the Ministry ofMines are highlighted below:

Deironing of Eastern Ghat Bauxite :

4.4.1 To encourage the use of the deironedbauxite as a sweetener in Central India foraluminium production, the project is underimplementation at the cost of Rs. 53 lakh. Thereduction of iron content would be achieved bythe use of high intensity magnetic sepration. Theequipment procurement is in progress and therepresentative samples have been collected.

Improvement of digestion efficiency of EastCoast Bauxite and enhancement of Aluminaproductivity :

4.4.2 The project at a cost of Rs. 25.15 lakhwas approved to study and optimise the plantoperation to enhance digestion efficiency andaluminate liquor productivity. On successfulcompletion, the project will help in improving thecapacity of alumina refineries without incurringsubstantial capital expenditure. The equipmentprocurement is in progress.

Extraction characterisation and removal ofOrganic impurities in the Bayer Process :

4.4.3 The concentration of the organic impuritiesin the aluminate liquor in the alumina refinerygoes on continuously building up. These affectthe precipitation of alumina and reduce the qualityof metal produced. Hence, the project on thedevelopment of technique/expertise to control theimpurities has been approved at the cost of Rs.35 lakh. The equipment procurement is inprogress.

4.5 The actual expenditure of JNARDDC for1999-2000 was Rs. 198.22 lakh. The approvedoutlay for 2000-2001 is Rs. 215 lakh (B.S.Rs. 65 lakh). In RE 2000-2001, Rs. 210.90 lakh(B.S. Rs. 80.90 lakh) has been recommended.An outlay of Rs. 240 lakh (B.S. Rs. 90 lakh) hasbeen proposed for 2001-02.

4.6 It is envisaged to have internal generationof Rs. 65 lakh in 2000-2001 and Rs. 75 lakh in

2001-2002 respectively as income. An incomeof Rs. 35 lakh was generated till 31.12.2000.

NATIONAL INSTITUTE OF ROCK MECHANICS(NIRM)

5.1 The National Institute of Rock Mechanics(NIRM) was established as an autonomousresearch Institute under the Ministry of Mines,Government of India in 1988. The objective forNIRM is to provide enabling technology to miningand civil engineering sectors and constructionindustries and develop state-of-the-art tools andtechniques of rock mechanics and rockengineering, to achieve improved production,productivity and product quality, with enhancedsafety and economy. The liberalisation andglobalisation of the Indian economy has openedup new opportunities for the energy and rawmaterials sectors, encompassing mining, hydro-power and infra-structure industries. This in turnhas posed new challenges to research institutesrelated to these industries. NIRM is one suchorganisation that is in the vanguard of researchinitiatives in the field of rock engineering.

5.2 The Instititue has structured the R&Dprogrammes in (i) Non-coal mines, (ii) Coal mines,(iii) Hydel projects, (iv) Excavation projects.

5.3 In non-coal mines, the major areas ofresearch include (i) Optimum design of miningoperations, and (ii) Monitoring and evaluation ofstability of excavations for improving safety,conservation and productivity. The Institute hasdeveloped expertise in numerical modelling, geo-physical investigations and ground control. NIRMcarried out mapping of ore-pass and damage zonesin shaft walls, along with analysis of deteriorationof the lining, of main shaft at Mochia mine (HZL)and stress monitoring in the crown pillar atBhotang Mine (SMC). Ground stability evaluationstudies were carried out at Zawarmala andRajpura-Dariba Mine (HZL). The GroundPenetrating Radar (GPR) mapping was done toevaluate the stability of tailing dams at Rampura-Agucha Mines. The slopes for foot wall bencheswere designed for safe and optimum extraction

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of ore at Rampura-Agucha Mine (HZL). Studieson control of fly rock, vibration and air over-pressure were carried out at the mines of IndiaCements and Prism Cements. Studies for scientificdesign of drilling and blasting parameters toimprove the recovery of optimum size of saleableblocks were carried out at the granite quarries ofTAMINS and novel Granites.

5.4 In coal mines, the areas of research include(i) Design and evaluation of support systems forbord-and-pillar and longwall workings,(ii) Application of fast roof bolting technology,(iii) Mapping of barriers and study of cavability ofroof strata, (iv) Design of pillars, (v) Subsidencepredications, (vi) Design of methods for speedyextraction of standing pillars, (vii) Study oninfluence of total charge on ground vibrations,assessment and control of ground vibrations. TheInstitute undertook studies in the mines of SCCL,WCL, etc.

5.5 In the hydro-electric projects, the Institutehas the expertise in (i) Geo-technical and geo-physical investigations, (ii) Design of supportsystems and instrumentation, (iii) 2D and 3D stressanalysis, (iv) Controlled blasting. Investigationswere carried out at various projects including Talahydro-electric project (Bhutan), Sardar Sarovarproject (Gujarat), Ghatghar underground powerhouse (Maharashtra), Pykara hydro-electric project(Tamil Nadu), Nathpa Jhakri Power CorporationLtd. (Himachal Pradesh), Yeleru reservoir project(Andhra Pradesh), Upper Tunga project(Karnataka), Athirappilly hydel project, Pallivasalhydel project and Thottiyar scheme (Kerala).

5.6 In excavation projects, the Institute isengaged in R&D in the areas of (i) Numericalmodelling, (ii) Foundation evaluation studies, (iii)Characterisation of sub-surface flaws anddetermination of in-situ stress, (iv) Assessmentof stability and design of slope angles, (v)Controlled blasting close to critical structures, (vi)Studies on safe, economical and smooth blasting.The Institute conducted studies at Almatti Dam(Karnataka), Badagara project (Kerala), KrishnaBhagya Jala Nigam Ltd. (Karnataka), Underground

oil storage project site at Mora (Maharashtra),Mangolore Refineries and Petro-chemicals Ltd.(Karnataka).

5.7 The actual expenditure of NIRM for 1999-2000 was Rs. 288.66 lakh. The budget estimatefor the year 2000-01 was Rs. 250 lakh (BudgetSupport Rs. 75 lakh). The revised estimate forthe year 2000-01 is Rs. 266.54 lakh (BudgetSupport Rs. 91.54 lakh). The outlay for the year2001-02 has been proposed for Rs. 300 lakh(Budget Support Rs. 100 lakh).

5.8 NIRM completed 38 sponsored Projects tillDecember, 2000. The scientists contributed 48papers (23 in international journals/conferencesand 25 in national journals/conferences). Anexternal cash flow of Rs. 440 lakh was generatedtill December, 2000.

NATIONAL INSTITUTE OF MINERS' HEALTH(NIMH)

6.1 National Institute of Miners Health wasregistered as an outonomous society in February,1990 to address exclusively the OccupationalHelath problems of miners due to their longexposure to the mining environment.

6.2 The Institute has generated an income ofRs. 1.5 lakh till 31.12.2000. It has extendedservices to NALCO, HZL, BGML, NMDC, etc. tomonitor the Pollution Control efficacy in the minesand also to monitor the health of the miners.

6.3 Against a provision of Rs. 70 lakh in BE2000-01 and RE 2000-01, an outlay of Rs. 50lakh (Budget Support) has been proposed for2001-02 to provide for procurement of equipment.

ONGOING SCIENCE AND TECHNOLOGY PROJECTS

7.1 A total of 28 projects are presently underimplementation out of which 2 have beenapproved in 2000-01. Twelve projects are likelyto be approved by the Standing Scientific AdvisoryGroup of the Ministry by 31.3.2001.

7.2 Highlights of some of the ongoing projectsare given hereunder.

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Setting up of technology proving plant for nickelextraction-Hindustan Zinc Limited (HZL) andRegional Researh Laboratory (RRL),Bhubaneswar.

7.2.1 The technology-proving plant has beencommissioned in all respects. The revised projectcost of Rs. 10.5 crore against the original Rs. 10crore has been approved. The reduction in roastingof the ore commenced on Ist September, 2000.The generation of process data on differentparameters is in progess. Approximately, 1.76MT of nickel-carbonate has been produced tillDecember, 2000. The complete results of theoperations of the plant are expected by the endof March, 2001. The know-how packagepreparation will be taken up subsequently.

Development of advanced process controland optimisation technology for mineralprocessing plants.

7.2.2 The project at the cost of Rs. 281 lakhhas a specific target of achieving 1 per centimprovement in lead and zinc metal recoveriesindividually at Agucha mine of HZL assuming nosignificant changes occur in feed mineralogy,flotation chemistry or other factors that impactplant base line performance. The additionalbenefits anticipated include (i) savings in reagentsconsumption, (ii) savings in energy consumptionduring grinding, (iii) lower variability in plantoperation, (iv) smoother running of the plantresulting in savings, maintenance and productioncost. The project completion date has beenpreponed by about 11 months. The grinding circuitadvanced process controller has beencommissioned successfully in November, 2000on all three grinding circuit at the plant site ofHZL. The commissioning of the controllers hasshown an immediate impact by increasingthroughput significantly (from 4500 TPD to5000 TPD) besides consistently meeting grindingcircuit quality requirements vis-a-vis product sizedistribution and percent solid ratio. This itself willbear a strong positive influence in appreciablyincreasing the overall productivity of the plantincluding individual recoveries of Lead and Zinc.

Simultaneously, flotation circuit modelling andcontrol design is underway and is expected to goon line by March, 2001.

Development of Electro-magnetic Tomographyand buried electrode method for Geotechnicalstudies and base metal explorations, MECL.

7.2.3 The project was approved at a cost ofRs. 94 lakh to develop expertise for decipheringthe shape and size of ore body/fracture andfissures and configuration between two bore-holepoints. The gravimeter, resistivitimeter and vehiclefor the project have already been procurred inJuly, 2000. The equipment has also beencommissioned by the engineers of foreignsuppliers. The upgradation of cross-holetomography system is in progress.

Evaluation of metal content in base metalsulphide ores by boreholes geophysical logging,MECL.

7.2.4 The project has been completed inSeptember, 2000. The conclusions drawn fromthe outcome of the work are : (i) A new dimensionis added to the geophysical equipment in thecountry, (ii) The result obtained from the studyof five boreholes for fuel minerals clearly indicatedthat the percent abundance of different constituentelements of the coal seams encountered indifferent drill holes of the same block are wellcorroborated with the chemical analysis data andin the other blocks with little variation, (iii) Thelimited study for fuel mineral by gammagammaback scattered technique and neutrongammaactivation technique have clearly brought out thatthe neutron activation logging has definitely havean edge over back scattered logging for evaluationof in-situ elemental abundance in the borehole,(iv) Determination of physical and petro-physicalparameters like density, porosity, ash percentage,etc., are more effective from back scatteredgamma logging in camparision to neutronactivation logging. The field work in differentmineral districts in the country to achieve expertisein processing and interpretation of the datagenerated by the geo-physical equipment is in

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progress. The same is likely to be completed byDecember, 2001.

Performance evaluation of water-injectioncyclone for classification-Regional ResearchLaboratory, Bhopal.

7.2.5 The project has been completed at the costof Rs. 22 lakh and the completion report hasbeen received. The efforts are underway forindustrial applications of the results obtained. Thestudies on ground lead-zinc ore from the operatingplant at Rampura-Agucha mines have indicatedthe following benefits of water-injection cycloneover hydrocyclone : (i) Higher recovery of 25micron size material in the overflow product, (ii)Higher recovery of zinc in fines below 25 micronsin the ovedrflow product, (iii) Higher recovery oflead in fines below 25 microns in the overflow,(iv) Higher separation efficiency values at 25microns cut size, (v) Higher overflow densities,(vi) Lower imperfection numbers, (vii) Lowercirculation load ratios.

Development of energy and cost effectivematerials for mining industries.

7.2.6 The project has been completed at the costof Rs. 50 lakh contributed by the Ministry of

Mines Rs. 20 lakh, Department of Science andTechnology Rs. 20 lakh and Council of Scientificand Industrial Research Rs. 10 lakh. Thecompletion report has been received. Two newmaterials, viz., aluminium hard particle compositeand SLIZ alloy have been developed. The Apexliner made of aluminium hard particle compositematerial has been tested successfully in D-15cyclone of HZL. Similarly, the bushes made ofSLIZ alloy have been tested successfully inreciprocating feeders of HZL. The efforts are onfor industrial applications of both these items.

Development of a process for electro-refining ofaluminium metal�Central ElectrochemicalResearch Institutue, Karaikudi.

7.2.7 The project has been approved at a cost ofRs. 43.8 lakh to develop further, for industrialapplication, a two-layer process for electrorefiningof aluminium to attain the purity levels higherthan that obtained conventionally. At present,the worldover three layer process, called Hoopsprocess, is in vogue commercially. The projectshas started in December, 2000.

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INTRODUCTION

1.1 International co-operation continued to bea thrust area in the Ministry of Mines during theyear 2000-2001. Concerted and continued effortswere made to project the mineral sector as anattractive investment destination. The keyobjectives being to further strengthen areas ofbilateral cooperation with countries where bilateralagreements already exist, and also to enter intofresh agreements with countries that are techno-logically advanced, and to offer India�s assistancein developing the mineral resources of othercountries. Attracting foreign direct investment andfacilitating inflow of state-of-the-art technologies,was another area where emphasis was laid. Duringthe year the Foreign Investment Promotion Boardapproved seven proposals involving Foreign DirectInvestment to the tune of Rs. 230 crore in themining sector. This take the total number of FIPBapprovals to 67, indicating an expected FDI flowof Rs. 3,697 crore.

INDO-FRENCH WORKING GROUP ON MINERALEXPLORATION AND DEVELOPMENT

2.1 The 14th Meeting of the Indo-FrenchWorking Group on Mineral Exploration andDevelopment was held in Paris, France on8-9.11.2000. The meeting reviewed the progressof on-going projects, and expressed satisfactionat the pace at which the projects and programmeswere moving. The meeting also discussed newproject proposals and identified and prioritisedthe following nine projects for future cooperation,viz. : (1) Supply of one Electron Probe

Microanalyser (EPMA) to Geological Survey ofIndia; (2) Supply of laboratory equipment forphysico-chemical characterisation of minerals toIndian Bureau of Mines; (3) Capacity building atState Level for Mineral Development andEnvironmental Management; (4) Contribution to asustainable socio-economic development ofManipur State : Supply of equipment along withrelated technical assistance to Department ofGeology and Mining of Government of Manipur;(5) Supply of oceanographic equipment andtechnical and scientific assistance to the Indianprogramme of seabed investigations in theExclusive Economic Zone of India (GeologicalSurvey of India); (6) Management of MiningWastes (Indian Bureau of Mines); (7)Implementation of United Nations FrameworkClassification for mineral resources managementin India (IBM); Collaboration of Harnessing Geo-thermal energy (Geological Survey of India); and(9) Use of seismic technology for MineralExploration.

2.2 The 14th Meeting of the Indo-FrenchWorking Group on Mineral Exploration andDevelopment concluded with the signing of aProtocol between the Secretary, Ministry of Minesand the Director General, Energy and RawMaterials, Minstry of Economy, Finance andIndustry, Government of France on the 9.11.2000.

INDIA-AUSTRALIA JOINT WORKING GROUPON ENERGY AND MINERALS

3.1 Australia has a highly developed andcompetitive mineral exploration and mining

CHAPTER VIII

INTERNATIONAL COOPERATION

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industry using advanced geological concepts andtechnology and has a comperhensive and highquality Geoscientific knowledge base. There hasbeen a very rapid growth of mineral industry inAustralia and their exploration techniques havebeen innovative and successful. It is known tohave a largest economically proved resources fordiamonds, lead, silver, zinc and mineral sandsand have substantially rich resources of bauxite,coal, lignite, cobalt, copper, gold, iron ore andmanganes. Australia is one of the top six mineralproducing countries for bauxite, gold iron ore,lead, zinc, mineral sands and uranium.

3.2 The sixth meeting of the India-AustrailiaJoint Ministerial Commission held on 26.2.1999at New Delhi reiterated the need top establish aJoint Working Group on Energy and Minerals. Itwas also decided that the Ministry of Mines,Ministries of Coal, Power, Petroleum & NaturalGas and Department of Non-Conventional EnergyResources would form the Indian Side for theJoint Working Group.

3.3 The First Meeting of the India-Australia JointWorking Group on energy and Minerals was heldin Sydney, Australia on 10.4.2000. The meetingadopted Terms of Reference for the future workof the Joint Working Group. The meeting enabledboth sides to develop a better understanding ofeach other�s energy and mineral supply anddemand situation and future policies. Indian sideadvised of improved policies for investment inpower, mining and petroleum sectors in India.The Australian side outlined their capabilities andtechnologies for mineral processing and coalhandling and utilisation. The meeting supportedfurther cooperation on existing coal ports studyto assist more efficient preparation of coal(blending and washing). Both sides also examinedopportunities for cooperation in non-conventionalenergy sources.

INDO-SOUTH AFRICAN CO-OPERATION

4.1 South Africa is one of the major mineralproducing and exporting countries in the world,with the largest known reserves of gold,

chromium, platinum and vanadium. The countryalso has substantial deposits of minerals like coal,uranium, diamonds, iron, zirconium, titanium,feldspar, nickel, phosphates, etc. South Africahas an impressive track record of mineraldevelopment and holds great potential formeaningful and mutually beneficial cooperation inthe mineral sector. Ever since diplomatic ties withSouth Africa have been established in November1993 the Ministry of Mines has been exploringthe possibility of cooperation with South Africaas both countries have some geological similarities.

4.2 India and South Africa entered into anAgreement for cooperation in the field of Geologyand Mineral Resources on the 7.10.1997. Forthe implementation of this Agreement a JointWorking Group was formed, and the First Meetingof the Working Group was held at Johannesburg,South Africa in August 1998 and a Protocol wassigned in Cape Town on the 18.8.1998,identifying six projects for mutual cooperation.The six projects identified for cooperation are :(1) Establishment of a detailed correlation on aformation level between the Karoo sequences inSouthern Africa and the Gondwana sequences inIndia; (2) Geoscience Mapping in the near-shoreenvironment along the eastern Indian coastalmargin for the purpose of identifying off-shorediamond deposits; (3) Development of a pre-Gondwana precambrian crustal evolution andmetallogenic map for India and Southern Africa;(4) Evaluation of stability of underground mineworkings through micro-seismic techniques; (5)Hydro-fracturing for street measurement; and (6)Characterisation and processing of gold, diamondand platinum group of metal ores and to evolvesuitable beneficiation processes.

4.3 The 2nd Meeting of the Indo-South AfricanWorking Group on Geology and Mineral Resourceswas held in New Delhi in November 1999 andreviewed the progress of on-going projects. Themeeting also discussed new project proposals andidentified eight projects for future cooperation,viz. : (1) Bacterial Leaching of Low Grade GoldOres; (2) Development of suitable underground

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mining methods for exploitation of chromitedeposits of Sukinda, Orissa; (3) Retreatment ofTailings at K.G.F.; (4) Setting up of a pilot training-cum-production centre in South Africa for cuttingand polishing of precious and semi-preciousstones; (5) Investigations to develop andeconomically viable flow-sheet for extraction ofgold from the gold ore of Bhukia Jagpura Deposit,Near Banswara, Rajasthan; (6) Development ofNational Institute of Miner�s Health, Kolar; and(7) Application of Ground Penetration Radar ofExploration and Location of abandoned Galleriesand Water Bodies in mines. A review of theprogress of the projects was undertaken duringthe year between the implementing agenciesthrough correspondence.

VIETNAM

5.1 The 10th Meeting of the India-Vietnam JointCommission was held in Hanoi from 6-8.11.2000at Hanoi, Vietnam. Both sides agreed to extendthe Memorandum of Understanding for cooperationin the field of geology and mineral resourcessigned on 18.4.1994, for a further period of threeyears. Both sides discussed the progress of thejoint venture between Hindustand Zinc Limitedand VIGEGO, Vietnam for exploitation of golddeposits in Vietnam. The Vietnamese side alsowelcomed the Indian offer to involve Indiancompanies in geological mapping, mineralexploration and prospecting activities in the miningsector of Vietnam. Both sided also agreed tocooperate in the expert exchange programme inthe field of geology and mineral resources.

5.2 Under ITEC programme of the Ministry ofExternal Affairs the Ministry of Mines organised astudy tour for a four-member delegation from theVietnam National Gems and Gold Corporation(VIGEGO) to India from 15.4.2000 to 25.4.2000.The study team visited various mining and mineralprocessing installations at Udaipur, KolarGoldfields, Laboratory and I.T. Center of MineralExploration Corporation at Nagpur and theDiamond and Gems Development Corporation atJaipur.

RUSSIA

6.1 The 7th session of the Indo-RussianWorking Group on Ferrous and Non-FerrousMetallurgy was held in Moscow on 10-11.1.2001.The meeting reviewed the progress on bilateralco-operation in the areas identified by earlierWorking Group meetings such as technologytransfers in the ferrous and non-ferrousmetallurgical sector.

MYANMAR

7.1 A Minstry of Mines delegation visitedMyanmar to evaluate the mineral prospectidentified for taking up in the mineral sector forcross border cooperation. An Indian Geologistconducted some exploratory drilling and collectedrock samples for assessment of petrological,chemical and physical characteristics.

MOROCCO

8.1 The Ministry of Mines and the Ministry ofEnergy and Mines of the Kingdom of Moroccosigned a Memorandum of Understanding (MOU)in the fields of Geology and Mining. The MOUenvisages cooperation in the field of Geology andMineral Exploration. In the field of Geology thecooperation will be particularly in computerprocessing, advanced laboratory teachniques,application of digital image processing and trainingfacility for Moroccan scientists in India in all fieldsof geological and geophysical mapping andexploration. In the field of Mineral Exploration thecooperation will focus in mineral processing anddevelopment, mining environment and miningregulation. Mutual assistance will also be providedto promote joint ventures between specialisedorganisations in the fields of Geology and mining.

LAO PDR

9.1 The Department of Mines participated inthe 3rd India-Lao PRD Joint Commission Meetingheld in Vietnam on 9.11.2000. The Laos sideoffered to cooperate with India for exploring andmining of Potash deposits in Laos. The Indian

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side highlighted the expertise available withGeological Survey of India, Indian Bureau of Mines,Public Sector Undertakings and the Indian mineralindustry in the fields of mineral exploration,exploitation and mineral processing. The Indianside also agreed to help impart training of scientificand technical personnel of Laos in exploration,mining and mineral processing.

CANADA

10.1 The Ministry of Mines participated in the�Mining Millennium 2000 at Toronto, Canada

organised by the Prospectors and DevelopersAssociation of Canada.

10.2 The Ministry of Mines participated in the�Vancouver Cordilleran Exploration Round Up�organised by the British Columbia and YukonChamber of Mines held in Vancouver, Canadafrom 23-1-2001 to 26-1-2001. The Ministry ofMines organised a one-day Investors� Seminar on24th January and also set up an Exhibition Boothon 25-26.1.2001

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INTRODUCTION

1.1 As per Article 343 of the Constitution, Hindiis the Official Language of Union of India. Thereis a Hindi section in the Ministry to ensure theimplementation of Official Language policy in theMinistry and in Subordinate offices and PSUsunder its control. The Ministry is continuouslytrying its level best to promote the progressiveuse of Hindi in the official work as per the OfficialLanguage (OL) policy.

COMPLIANCE OF SECTION 3(3) OF OFFICIALLANGUAGE (OL) ACT

2.1 During the current year General Orders,Notification, Resolution, Administrative and otherreports etc. were issued bilingually in complianceof section 3(3) of Official Language (OL) Act,1963. In order to do maximum, official work inHindi standard drafts etc. were preparedbilingually. Employees having proficiency in Hindiwere issued orders to do their official work inHindi and four sections of the Ministry havealready been specified for doing 100 per centwork in Hindi.

HINDI TRAINING

3.1 Officers/employees are nominated underHindi Teaching Scheme of MHA to impart trainingin Hindi, Hindi stenography and Hindi typing. Morethan 90 per cent of the officers/employees of theMinistry have working knowledge of Hindi. Duringthe year one Hindi Translator was nominated forTranslation training in C.T.B. The translator

successfully completed the training and got theGold Medal.

HINDI SALAHAKAR SAMITI

4.1 In order to accelerate the use of Hindi inthe Ministry of Mines and its subordinate officesas well as PSUs a Hindi Salahakar Samiti hasbeen reconstituted in the Ministry on 23.10.2000and a Meeting has been fixed for 16.3.2001. Itis a High Powered Committee which reviews theprogress made in the use of Hindi in the Ministryand its Subordinate Offices as well as in PSUs. Italso recommends effective measures to increasethe use of Hindi and ensures the compliance ofOfficial Language Policy.

HINDI FORTNIGHT

5.1 Hindi in Devnagri script was adopted asofficial language of Union on 14.9.1949. Everyyear 14th September is celebrated as Hindi Day.In order to ensure the maximum use of officiallanguage Hindi in the official work, Hindi Fortnightis celebrated every year. Ministry of Mines alsoorganised the Hindi fortnight from 1-15.9.2000and during this period various Hindi competitorswere organised and provisions of cash Awardhave been made for the competitors who attainIst, IInd and IIIrd positions. In addition to thisthere is also provision of consolation prizes. TheAwardees are also given citations.

MEASURES FOR IMPLEMENTATION OFOFFICIAL LANGUAGE POLICY

6.1 For the propagation and enhancement ofOfficial Language it is the policy of the

CHAPTER IX

PROGRESSIVE USE OF HINDI

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Government to implement the Official Languagethrough incentive, inspiration and awards. In orderto encourage the officers/employees of theMinistry to do their work in Hindi various cashAward Schemes of Department of OfficialLanguage were implemented. An Official LanguageImplementation Policy is also functioning in theMinistry and during the year 2000-2001 themeetings of this Committee were organized asper schedule. In these meetings the progress madein the use of Hindi was reviewed and measuresadopted to achieve the target fixed for variousitems in the Annual Programme for the year 2000-2001 issued by the Department of OfficialLanguage.

6.2 For achieving the annual targets fixed forthe use of Hindi by the Department of OfficialLanguage various sections of the Ministry wereinspected and remedial measures were suggestedto overcome the shortcomings noticed.

INSPECTION OF SUBORDINATE OFFICES/UNDERTAKINGS REGARDING THE USE OFHINDI

7.1 In order to assess the use of Hindi inSubordinate offices/Undertakings of the Ministryof Mines, DD (Official Language) inspected IBMNagpur on 10.11.2000. Shortcomings noticedwere pointed to the concerned office and remedialmeasures were suggested to overcome the same.

USE OF HINDI IN THE OFFICES/PSUs UNDERTHE CONTROL OF THE MINISTRY OF MINES

8.1 In order to ensure the compliance of OfficialLanguage Policy in the offices/PSUs, directionswere issued by the Ministry from time to timeand progress made in usage of Hindi was closelymonitored during the year.

8.2 All these offices have their own Hindisections and are making their best efforts forimplementing Official Language Policy of theGovernment in letter and spirit.

8.3 An Official Language ImplementationCommittee under the chairmanship of the Head

of the concerned office has been set up in everyoffice. Meetings of these committees were heldregularly during the year under review.

8.4 The Officer dealing with Hindi in theMinistry was also invited in these meetings whogave valuable suggestions to increase the use ofHindi.

8.5 In order to assess the progress made inthe use of Hindi for official purposes and theimplementation of Official Language Policy of theGovernment, a quarterly progress report was calledfor from every subordinate office and Public SectorUndertaking of this Ministry. The reports werereviewed and shortcomings noticed during thereview were intimated to the concerned officesand remedial measures suggested to overcomethe same.

RAJBHASHA SHIELD YOJNA FOR PSUs/SUBORDINATE OFFICES

9.1 A Rajbhasha Shield Yojna for the year 1999-2000 was circulated among the PSUs/Subordinateoffices of the Ministry of Mines.

PUBLICATION OF HINDI MAGAZINE

10.1 The Ministry of Mines has been bringingout its House Magazine named Khan Sampadasince 1998. RAJBHASHA VISHESHANK of thismagazine was brought out on 14.9.1999 i.e. onHindi Divas. The Kendriya Sachivalaya HindiParished New Delhi has awarded Best MagazineAward to this Magazine at a function on19.11.2000.

INSPECTION OF UNDERTAKINGS BY THECOMMITTEE OF PARLIAMENT ON OFFICIALLANGUAGE

11.1 During the year 2000-2001 the Committeeof Parliament on Official Language inspectedoffices of NALCO and IBM Goa on 8.11.2000and 14.1.2001 respectively regarding theprogressive use of Hindi in these two undertakingsof the Ministry of Mines.

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WELFARE OF SCs, WOMEN AND WEAKERSECTIONS

1.1 The Ministry of Mines, Subordinate officesand the Public Sector Undertakings under itsadministrative control continued with the effortsto fill up the backlog vacancies in respect of SC/ST. The PSUs also continued the process ofidentifying and implementing programmes aimedat upliftment of weaker sections of society in theperipheral areas of their units/locations. A numberof activities like community education programme,facilitating availability of drinking water, repairand development of approach roads of surroundingareas, arranging health awareness programmes,school health programmes and medical camps inrural areas, were undertaken by the PSUs forupliftment of the community surrounding theirtownship as part of their social responsibility.

REDRESSAL OF PUBLIC GRIEVANCES2.1 In pursuance of the instructions andguidelines issued on 1.3.1988 by the Departmentof Administrative Reforms and Public Grievances tostrengthen the internal grievance redressalmachinery in each Ministry/Department of theCentral Government, the Joint Secretary in theMinistry of Mines has been designated as theDirector of Grievances. He has been vested withadequate powers in respect of all matters pertainingto the grievances received in the Ministry.Whenever a grievance is found to be genuine,directives for appropriate corrective measures aregiven to the concerned executive authorities.

2.2 The Ministry of Mines has under itsadministrative control two subordinate offices andsix public sector undertakings. The Chief Executives

of the PSUs and the Heads of the subordinateoffices have been entrusted with the responsibilityof strengthening the grievance redressal machineryby designating senior level officers to look after thejob and to report directly to the respective ChiefExecutive/Head. Quarterly reports about thegrievances received and disposed of are submittedby these Undertakings and Subordinate Offices tothe Ministry. These reports are, in turn, sent to theDepartment of Administrative Reforms and PublicGrievances. During the year 2000-2001 (uptoDecember 2000 ), 24 cases were received, out ofwhich 11 cases have been disposed of. In addition,as per instructions of the Department of Personneland Training, periodic inspections are alsoconducted of the working of the Public GrievancesRedressal Machinery in the six Public SectorUndertakings and the two sub-ordinate offices viz.(GSI and IBM) under the administrative control ofthe Ministry. The grievance cases are also beingreviewed by Secretary (Mines) in Quarterly Perfor-mance Review Meetings of these organisations.

2.3 In order to obviate the tendency ofGovernment employees to seek outside help forredressal of grievances relating to normal servicematters, the Government issued instructions inDecember, 1988 for designating Staff GrievanceOfficers in the Central Ministries/Departments andtheir attached and subordinate offices to dealeffectively and equitably with the grievancesrelating to service matters, like fair promotions,proper medical facilities, granting timely pensionarybenefits, etc. The Ministry and the subordinateoffices including the 6 PSUs under itsadministrative control had accordingly designatedsuch Staff Grievance Officers also.

CHAPTER X

WELFARE MEASURES

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vuqcaèk IAnnex I

1996&97 ls 2000&01 rd egRoiw.kZ [kfutks a dk mRiknu1996&97 ls 2000&01 rd egRoiw.kZ [kfutks a dk mRiknu1996&97 ls 2000&01 rd egRoiw.kZ [kfutks a dk mRiknu1996&97 ls 2000&01 rd egRoiw.kZ [kfutks a dk mRiknu1996&97 ls 2000&01 rd egRoiw.kZ [kfutks a dk mRiknuProduction of Selected Minerals, 1996-97 to 2000-01

¼ewY; djksM+ #i, esa½

(Value in Rs. Crore)

1996-97 1997-98 1998-99 1999-2000 ¼v½ (P) 2000-01 ¼vuq½ (E)[kfut bdkbZ ek=kk ewY; ek=kk ewY; ek=kk ewY; ek=kk ewY; ek=kk ewY; Unit Mineral

Qty. Value Qty. Value Qty. Value Qty. Value Qty. Value

lHkh [kfut 38269.37 44094.04 44550.44 45233.47 55041.79 All Minerals

b±/ku 31689.03 36497.80 36743.02 37226.82 46843.62 Fuel

dks;yk fe-Vu 286 15129.60 297 17724.16 292 18405.88 300 18950.76 323 20407.18 M.Tonnes Coal

fyXukbV fe-Vu 23 895.81 23 955.84 23 1111.84 22 1035.76 23 1077.00 M.Tonnes Lignite

izkÑfrd xSl fe-D;q-eh- 21325 4250.61 24544 6072.46 25706 5874.03 26884 6135.69 26426 7640.16 M.C.M. Natural Gas¼iz;qDr½ (Utilised)

isVªksfy;e fe-Vu 33 11413.01 34 11745.34 33 11351.26 32 11104.62 32 17719.28 M.Tonnes Peroleum (crude)¼vifj"Ñr½

/kkfRod [kfut/kkfRod [kfut/kkfRod [kfut/kkfRod [kfut/kkfRod [kfut 2717.87 3284.11 3310.20 3419.23 3608.08 Metallic Minerals

ckWDlkbV gtkj Vu 6076 113.31 6108 110.36 6610 121.68 6854 134.87 7061 141.81 000'tonnes Bauxite

ØksekbV gtkj Vu 1456 289.47 1515 304.55 1418 282.34 1696 334.71 2007 373.64 000'tonnes Chromite

rkez lkUnz gtkj Vu 3905@ 241.59@ 223 385.97 199 337.75 165 295.77 149 251.35 000'tonnes Copper Conc.

Lo.kZ fd- xzke 2892 163.57 2846 152.98 2683 172.69 2442 148.65 4053 185.38 Kg. Gold

yksg v;Ld gtkj Vu 68161 1479.56 75723 1819.70 72230 1855.95 73475 1965.29 77683 2076.59 000'tonnes Iron Ore

lhlk lkUnz gtkj Vu 60 57.40 61 68.84 63 70.54 63 69.91 58 65.22 000'tonnes Lead Conc

eSaxuht v;Ld gtkj Vu 1871 176.07 1642 177.78 1538 173.83 1565 181.00 1580 189.60 000'tonnes Manganese Ore

tLr lkUnz gtkj Vu 277 168.47 293 223.88 350 251.54 360 246.88 359 274.60 000'tonnes Zinc Conc.

vU; /kkfRod 28.43 40.05 43.88 42.14 49.89 Other met.

[kfut Minerals

v/kkfRod [kfutv/kkfRod [kfutv/kkfRod [kfutv/kkfRod [kfutv/kkfRod [kfut 1398.30 1591.45 1740.52 1830.72 1833.39 Non-Met. Minerals

,sisVkbV gtkj Vu 9 1.09 7 0.81 14 1.72 12 1.34 10 1.22 000'tonnes Apatite

,LcsLVkl gtkj Vu 27 2.13 26 1.93 20 1.90 18 2.20 16 2.23 000'tonnes Asbestos

csjkbfVl gtkj Vu 382 21.45 453 32.04 661 50.26 205 11.30 381 12.98 000'tonnes Barytes

ghjk dSjsV 31836 22.03 30994 20.95 34580 21.65 40666 17.93 38287 17.77 Carats Diamond

MksyksekbV gtkj Vu 3469 70.42 2991 72.11 2922 71.72 2875 67.95 2992 68.92 000'tonnes Dolomite

vfXufeV~Vh¹ ¹ gtkj Vu 407 3.95 450 4.87 470 5.89 369 4.07 340 4.08 000'tonnes Fire clay**

QyqvksjkbV lkUnz gtkj Vu 20 11.23 11 7.67 ++ 0.03 ++ 0.14 2 1.50 000'tonnes Fluorite Conc.

¼vuqca/k I tkjh½(Annex I contd.)

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1996-97 1997-98 1998-99 1999-2000 ¼v½ (P) 2000-01 ¼vuq½ (E)[kfut bdkbZ ek=kk ewY; ek=kk ewY; ek=kk ewY; ek=kk ewY; ek=kk ewY; Unit Mineral

Qty. Value Qty. Value Qty. Value Qty. Value Qty. Value

¶yqvksjkbV gtkj Vu 5 1.16 6 1.10 4 0.98 48 15.14 42 15.15 000'tonnes FluoriteJs.khÑr Graded

ftIle gtkj Vu 2210 29.70 2195 31.31 2267 33.83 3288 53.50 2951 49.36 000'tonnes Gypsum

dsvksfyu gtkj Vu 775 47.87 791 47.83 741 59.67 752 51.26 872 57.09 000'tonnes Kaolin

dk;ukbV gtkj Vu 7 0.34 6 0.32 6 0.41 6 0.41 4 0.30 000'tonnes Kyanite

pwukiRFkj eh- Vu 103 895.88 110 1036.94 113 1125.00 128 1265.06 127 1256.24 M.tonnes Lime stone

eSXuslkbV gtkj Vu 378 34.90 374 38.00 350 38.61 330 34.98 332 35.03 000'tonnes Magnesite

vHkzd Vu 1954 2.68 1697 2.38 1484 2.32 1273 2.31 1113 2.22 tonne Mica

QkLQksjkbV gtkj Vu 1341 137.21 1142 162.56 1262 191.77 1136 163.01 1089 176.54 000'tonnes Phosphorite

ik;jkbV~l gtkj Vu 144 7.04 125 7.89 89 9.33 10 0.86 - - 000'tonnes Pyrites

flfydk lSaM gtkj Vu 1540 15.33 1451 14.39 1718 18.04 3153 21.32 2602 18.21 000'tonnes Silica Sand

flfyeukbV gtkj Vu 9 2.90 12 4.49 12 4.81 15 5.48 13 4.86 000'tonnes Sillimanite

fLV;VkbV gtkj Vu 531 31.20 475 34.05 482 34.55 528 40.92 513 40.08 000'tonnes Steatite

oksysLVksukbV gtkj Vu 97 6.51 98 9.23 95 8.95 117 11.25 117 10.03 000'tonnes Wollastonite

vU; v&/kkfRod 53.28 60.58 59.08 60.29 59.58 Other Non-Met.[kfut Minerals

xkS.k [kfutxkS.k [kfutxkS.k [kfutxkS.k [kfutxkS.k [kfut 2464.17 2720.68 2756.70 2756.70® 2756.70® Minor Minerals

fe- Vu- µ fefy;u Vu] fe-D;w-eh-µ fefy;e D;wfcd ehVj] fd-xzkeµ fdyks xzke

¹ ¹ fdlh dkj.ko'k dks;yk [kuu esa ;fn dksbZ vfXufeVh mRiknu lfEefyr dj fy;k x;k rks mls NksM+dj ¼v½ vufUre rFkk vkbZ-ch-,e- ds ikl miyC/k ekfld foojf.k;ksa ij vk/kkfjr ¼vuq½ vizSy2000 ls vDVwcj 2000 rd ,df=kr vk¡dM+s rFkk uoEcj 2000 ls ekpZ 2001 rd vuqekfur vk¡dM+s ® xr o"kZ vk¡dM+s iqu% fn, x, gSa D;ksafd orZeku vk¡dM+s vHkh rd izkIr ugha gq, gSaA

++ ux.; @ rkack v;Ld ls lacaf/krA

fVIi.kh ¼1½ vk¡dM+s [kku eqgkuk ewY; crkrs gSa ¼2½ vk¡dM+s [kfut laj{k.k ,oa fodkl fu;ekoyh 1988 ds vUrxZr feyh foojf.k;ksa ij vkèkkfjr gSa dks;yk] fyXukbV] isVªksfy;e ¼vifj"Ñr½]izkÑfrd xSl ¼iz;qDr½ rFkk xkS.k [kfutksa dks NksM+djA

òksrµ ¼d½ dks;yk ,oa fyXukbV % dks;yk fu;U=kd] dydÙkk

¼[k½ isVªksfy;e ¼vifj"Ñr½ rFkk izkÑfrd xSl % isVªksfy;e rFkk izkÑfrd xSl eU=kky;

¼x½ xkS.k [kfut ¾ jkT; ljdkjA

(E) Comprise recorded figures from April 2000 to October 2000 and estimated for November 2000 to March 2001.(P) Provisional and based on monthly returns to the extent available with IBM.m.t.�Million tonne 000't�Thousand tonnesm.c.m.�Million cubic metreKg.�Kilogram ++Negligible** Excludes the production of fireclay, if any recovered incidental to coal mining@ � Pertains to Copper Ore(R)�Previous years figures repeated as current data have not been received yet.

Note : (1) The value figures pertain to pithead value.(2) Data based on the returns received under MCDR, 1988 except coal, lignite, petroleum (crude), natural gas (utilised) and minor minerals.

Source : (a) Coal and Lignite : Coal Controller, Calcutta(b) Petroleum (crude) and Natural Gas : Ministry of Petroleum & Natural Gas(c) Minor Minerals : State Governments.

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vuqcaèk IIAnnex II

o"kZ 1994&95 ls 1998&99 rd v;Ldksa vkSj [kfutks a dk fu;kZro"kZ 1994&95 ls 1998&99 rd v;Ldksa vkSj [kfutks a dk fu;kZro"kZ 1994&95 ls 1998&99 rd v;Ldksa vkSj [kfutks a dk fu;kZro"kZ 1994&95 ls 1998&99 rd v;Ldksa vkSj [kfutks a dk fu;kZro"kZ 1994&95 ls 1998&99 rd v;Ldksa vkSj [kfutks a dk fu;kZrExports of Ores & Minerals, 1994-95 to 1998-99

¼ewY; djksM+ #i, esa½

(Value in Rs. Crore)

1994-95 1995-96 1996-97 1997-1998 1998-1999[kfut bdkbZ ek=kk ewY; ek=kk ewY; ek=kk ewY; ek=kk ewY; ek=kk ewY; Unit Minerals

Qty. Value Qty. Value Qty. Value Qty. Value Qty. Value

lHkh [kfut 15832 19820 18956 20643 24622 All Minerals

,cszlho ¼izkÑfrd½ Vu 18984 9 35470 15 30247 17 46709 24 42495 23 tonne Abrasives (natural)

,Y;wfeuk Vu 479569 231 447988 326 560615 375 427184 325 216881 163 tonne Alumina

csjkbfVl Vu 244643 24 424840 40 140023 17 24373 4 106232 15 tonne Barytes

ckWDlkbV Vu 97210 3 149968 5 103925 5 86876 3 98943 24 tonne Bauxite

csaVksukbV Vu 147005 17 147856 19 174118 28 183212 33 179314 34 tonne Bentonite

cksjsDl 133 ++ 311 1 290 1 714 2 498 1 Borax

bekjrh o Vu 307635 47 624863 60 888324 120 2347003 74 295814 84 tonne Building &Lekjdh; iRFkj Monu stones

ØksekbV Vu 490212 103 347705 161 565825 225 438948 149 492540 176 tonne Chromite

dks;yk gtkj Vu 673 88 651 96 478 83 540 88 823 141 000 t Coal

ghjk ¼eq[;r% rjk'kk½ * 12357 * 15374 * 14299 * 16015 * 19977 Diamond (mostly cut)

MksyksekbV Vu 1264 1 74 ++ 3036 1 6679 1 5541 2 tonne Dolomite

ejdr * 133 * 255 * 143 * 179 * 143 Emerald

QsyLikj Vu 49307 8 84622 14 94717 17 77644 16 52631 11 tonne Felspar

QsyLikj ¼rjk'kk rFkk * 10 * 11 * 8 * 11 * 6 Felspar (cut & uncut)fcuk rjk'kk½

QqylZ vFkZ Vu 128 ++ 76 ++ 163 ++ 403 ++ 31660 6 tonne Fullers earth

xkusZV ¼rjk'ks o fcuk rjk'ks½ * 6 * 3 * 8 * 9 * 13 Garnet (cut & uncut)

xkusZV ¼izkÑfrd½ Vu 11956 3 2734 1 1913 1 6661 2 42519 15 tonne Garnet (natural)

xszukbV Vu 1133000 906 1277160 1083 1172474 1139 708160 958 778643 1013 tonne Granite

xszQkbV ¼izkÑfrd½ Vu 675 2 660 2 248 ++ 265 ++ 556 1 tonne Graphite (Natural)

ftIle o IykLVj Vu 28428 1 43770 3 67104 6 20197 2 38735 4 tonne Gypsum & Plaster

byseukbV Vu 177674 49 207812 72 42961 22 109312 37 64955 30 tonne Ilmenite

¼vuqca/k II tkjh½(Annex II contd.)

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1994-95 1995-96 1996-97 1997-1998 1998-1999[kfut bdkbZ ek=kk ewY; ek=kk ewY; ek=kk ewY; ek=kk ewY; ek=kk ewY; Unit Minerals

Qty. Value Qty. Value Qty. Value Qty. Value Qty. Value

ykSg v;Ld g- Vu 26062 1298 31719 1721 27627 1706 29496 1770 22274 1615 000 t Iron Ore

dsvksfyu Vu 8660 2 6241 2 10469 3 10139 3 7810 3 tonne Kaolin

pwuk iRFkj Vu 299584 4 199855 4 46640 7 231693 8 219319 8 tonne Lime stone

eSXuslkbV Vu 1652 1 866 1 2227 2 615 1 1669 1 tonne Magnesite

eSaXuht Mk; vkDlkbM Vu 2005 5 1896 3 1875 2 1384 1 1380 1 tonne Mang. Dioxide (elect.)¼fo|qrna'kh½

eSaxuht v;Ld Vu 276598 35 236529 30 309846 48 259194 43 166963 19 tonne Manganese Ore

laxejej Vu 73252 92 59312 90 66839 108 74694 130 69800 111 tonne Marble

vHkzd Vu 30074 39 33776 47 29360 47 47892 63 50245 70 tonne Mica

izkÑfrd xSl Vu - - - - - 52630 27 25708 12 tonne Natural gas

cgqewY; o vèkZ cgqewY; * 217 * 245 * 346 * 438 * 685 Prec. & semi prec.tM+kÅ iRFkj ¼vfou½ stones NES

DokVZt ¼izkÑfrd½ Vu 37982 7 72327 14 42172 10 16224 5 32045 9 tonne Qartz (Natural)

jsM vkWDlkbM Vu 898 1 1473 3 1375 1 1083 2 2034 2 tonne Red Oxide

jkWd QkWLQsV Vu 200 ++ 145 ++ 221 ++ 153 1 5880 1 tonne Rock Phosphate

#Vkby Vu 9603 12 11240 16 7399 17 8955 7 6744 16 tonne Rutile

ued ¼vke ued Vu 141107 10 57759 4 19037 3 35822 4 21254 4 tonne Salts (other thands vykok½ common salts)

ckyw ¼èkkrqe; Vu 24315 7 32523 5 26478 4 18364 5 13367 4 tonne Sand (excl. metalckyw dks NksM+dj½ bearing)

flfydk lSaM Vu 9687 3 25756 7 36137 11 25356 12 15595 10 tonne Silica sand

LysV Vu 50484 32 97245 45 69755 54 66045 57 88131 87 tonne Slate

lksfM;e ukbVjsV Vu 2333 3 2066 3 2059 3 2428 4 1547 3 tonne Sodium Nitrate

LVh;VkbV Vu 27783 10 30413 13 99200 14 27360 12 32226 15 tonne Steatite.

xaèkd Vu 1238 1 1711 2 1581 2 1604 5 3611 14 tonne Sulphur

oksysLVksukbV Vu 9800 7 6743 5 11582 8 16977 11 7939 6 tonne Wollastonite.

tLr v;Ld o lkUnz Vu 20500 19 140 ++ 31239 30 92364 92 30921 27 tonne Zinc ores & conc.

vU; [kfut 29 19 17 10 17 Other Minerals

¹ek=kk ds vk¡dM+s va'kr% lekfgr fd, tkus ds dkj.k ugha fn, x, gSa] *Quantity figures are not given due to partial coverage, Value, figures, however, have full coverage.

ijUrq ewY; ds vk¡dM+s iw.kZr% lekfgr gSaA

vfou % vU;=k fofu£n"V ugha N E S : Note Elsewhere Specified.

òksr % Mh- th- lh- vkbZ o ,l- dydÙkkA Source : Directorate General of Commercial Intelligence & Statistics, Calcutta.

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vuqcaèk IIIAnnex III

o"kZ 1994&95 ls 1998&99 rd v;Ldksa vkSj [kfutks a dk vk;kro"kZ 1994&95 ls 1998&99 rd v;Ldksa vkSj [kfutks a dk vk;kro"kZ 1994&95 ls 1998&99 rd v;Ldksa vkSj [kfutks a dk vk;kro"kZ 1994&95 ls 1998&99 rd v;Ldksa vkSj [kfutks a dk vk;kro"kZ 1994&95 ls 1998&99 rd v;Ldksa vkSj [kfutks a dk vk;krImports of Ores & Minerals, 1994-95 to 1998-99

¼ewY; djksM+ #i, esa½

(Value in Rs. Crore)

1994-95 1995-96 1996-97 1997-1998 1998-1999[kfut bdkbZ ek=kk ewY; ek=kk ewY; ek=kk ewY; ek=kk ewY; ek=kk ewY; Unit Mineral

Qty. Value Qty. Value Qty. Value Qty. Value Qty. Value

lHkh [kfutlHkh [kfutlHkh [kfutlHkh [kfutlHkh [kfut 19366 23660 34286 34655 37349 All Minerals

,Y;wfeuk Vu 7771 22 11527 28 9920 26 13849 39 11030 34 tonne Alumina

,LcsLVkWl Vu 70171 116 81924 145 77498 146 61474 121 76094 159 tonne Asbestos

cky Dys Vu 3197 2 3397 3 2883 3 8596 5 4414 4 tonne Ball clay

ckWDlkbV Vu 21634 7 71590 26 27177 14 32245 16 59026 20 tonne Bauxite

cksjsDl Vu 25655 29 38031 45 22667 32 31794 39 39097 55 tonne Borax

dks;yk g- Vu 10739 2036 12513 2691 3175 3106 6439 3709 16537 3556 000 t Coal

dksckYV v- rFkk lkUnz Vu 2 ++ 13 1 252 4 606 9 2465 28 tonne Colbalt Ore & Conc.

dksd Vu 652357 189 1177493 405 1237320 426 2275274 721 1569401 565 tonne Coke

rkacz v- rFkk lkUnz Vu 448 2 19384 66 60096 132 87934 159 296110 570 tonne Copper Ore & Conc.

Øk;ksykbV rFkk fpykbV Vu 1439 2 1384 3 815 2 393 1 2410 5 tonne Cryolite & Chiolite

ghjk ¼fcuk rjk'kk½ * 4960 * 6874 * 10183 * 12087 * 15556 Diamond (uncut)

MksyksekbV Vu 1094 ++ 2651 1 202 ++ 319 ++ 21764 6 tonne Dolomite

ejdr 8091 54 * 67 * 2 * 92 * 42 Emerald

QywvksLikj Vu 61781 19 53627 25 54666 28 39135 19 72352 38 tonne Fluorspar

xszQkbV ¼izkÑfrd½ Vu 960 2 774 2 823 4 1081 3 694 3 tonne Graphite (Natural)

xszukbV Vu 477 1 588 1 1037 1 913 1 2577 3 tonne Granite

ftIle o IykLVj Vu 13132 1 23185 2 10146 3 16254 4 14627 10 tonne Gypsum & Plaster

ykSg v;Ld g- Vu 1523 214 879 145 853 125 372 77 149 25 000 t Iron Ore

dsvksfyu Vu 553 1 424 1 1429 2 3104 4 4826 6 tonne Kaolin

lhlk v;Ld ,oa lkUnz Vu 32269 29 14625 19 52428 72 40289 49 10679 15 tonne Lead Ore & Conc.

pwuk iRFkj Vu 631918 32 964436 55 1030581 69 1186240 79 1377594 98 tonne Limestone

¼vuqca/k III tkjh½(Annex III contd.)

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1994-95 1995-96 1996-97 1997-1998 1998-1999[kfut bdkbZ ek=kk ewY; ek=kk ewY; ek=kk ewY; ek=kk ewY; ek=kk ewY; Unit Mineral

Qty. Value Qty. Value Qty. Value Qty. Value Qty. Value

eSaXuslkbV Vu 103416 107 117974 137 66954 82 57188 73 42102 57 tonne Magnesite

eSXuht Mk;vkDlkbM Vu 1020 3 509 3 818 4 1346 7 1699 10 tonne Manganese Dioxide

¼bySDVªksykbfVd½ (electrolytic)

eSaxuht v;Ld Vu 3607 4 3689 4 2760 3 5065 6 4343 5 tonne Manganese Ore

laxejej Vu 19464 11 32133 19 46291 39 23136 20 21956 23 tonne Marbal

vHkzd Vu 124 7 214 9 442 7 346 9 405 8 tonne Mica

izkÑfrd xSl Vu 0 0 0 0 0 0 2 ++ 1761 4 tonne Natural Gas

fudsy v;Ld vkSj lkUnz Vu 2075 35 1983 48 1418 36 2015 46 1131 19 tonne Nickel Ore & Conc. z

isVªksfy;e ¼vifj"Ñr½ gtkj Vu 27349 10316 27357 11540 33710 18555 34399 15825 39686 14906 000 t Petroleum (crude)

cgqewY; o vèkZ cgqewY; * 99 * 116 * 186 * 188 * 195 Precious & Semi-

tM+kÅ iRFkj ¼vfou½ precious stones NES

jkWd QkLQsV Vu 2540138 468 2443753 524 2038153 477 2667811 661 3099453 834 tonne Rock phosphate

ckyw ¼èkkrqe; Vu 602 1 1745 4 903 1 1432 3 1697 3 tonne Sand (excl.

ckyw dks NksM+dj½ metal bearing)

lksfM;e ukbVjkbV Vu 1501 2 520 1 815 1 3925 5 2893 4 tonne Sodium Nitrite

xaèkd Vu 1600811 428 1543503 484 1543503 325 1617847 353 1583361 282 tonne Sulphur

fVu v;Ld o lkUnz Vu 1149 11 1441 16 2478 30 5016 27 144 2 tonne Tin Ore & Conc.

VaxLVu v;Ld Vu 838 8 481 7 315 5 440 4 210 3 tonne Tungston Ores

o lkUnz & Conc.

osusfM;e v;Ld Vu 3751 52 6290 77 7791 57 11545 86 7504 68 tonne Vanadium Ores

o vU; & Others

tLr v;Ld o lkUnz Vu 49905 60 39516 40 42661 56 31776 51 62668 88 tonne Zinc Ores & Conc.

vU; [kfut 36 26 42 57 40 Other Minerals

* % ek=kk ds vk¡dM+s va'kr% lekfgr fd, tkus ds dkj.k ugha fn, x, gSa] * Quantity figures not given due to partial coverage,

ijUrq ewY; ds vk¡dM+s iw.kZr% lekfgr gSaA value figures, however, have full coverage

vfou % vU;=k fofu£n"V ugha N E S : Not Elsewhere Specified

òksr % Mh- th- lh- vkbZ o ,l- dydÙkkA Source : Directorate General of Commercial intelligence & Statistics, Calcutta