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    1

    NORTHERN COALFIELDS LIMITED(a Subsidiary of Coal India Limited)

    C O N T E N T SPage Nos.

    1. Board of Directors 2

    2. Bankers & Auditors 4

    3. Notice 5

    4. Directors' Report 6

    5. Certificate of Compliance of Corporate Governance Guidelines 74

    6. Balance Sheet as at 31st March, 2011 75

    7. Profit & Loss Account for the year ended 31stMarch, 2011 76

    8. Cash flow statement for the year ended 31stMarch, 2011 77

    9. Annual Financial results under (under clause 41 of SEBI) 78

    10. Balance Sheet Abstract and Company's General Business Profile 80

    11. Schedules (A to O) to Balance Sheet 81

    12. Schedules (1 to 18) to Profit & Loss Account 95

    13. a) Accounting Policy (Schedule - 19) 109

    b) Notes on Accounts (Schedule - 20) 116

    14. Addendum to the Directors' Report

    a) Auditor's Report and Management's Replies 126

    b) Comments of the Comptroller and Auditor 137

    General of India under section 619 (4) of

    the Companies Act, 1956.

    ******

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    NORTHERN COALFIELDS LIMITED(A subsidiary of Coal India Limited)Board of Directors

    (As on 17.5.2011)

    Chairman-cum-Managing DirectorShri Vinay Kumar Singh

    Functional DirectorsMs. Shantilata Sahu - Personnel

    Shri N. Das - Technical

    Shri O. P. Mishra - Technical

    Shri S. K. Rawat - Finance

    Part-time Official DirectorsShri Kailash Pati - Economic Advisor, Ministry of Coal,

    New Delhi.

    Part-time Non Official DirectorsDr. B. B. Goel - Director

    Dr. Sheela Bhide - Director

    Shri S. R. Upadhyay - Director

    Shri S. Krishnan - Director

    Dr. Atul Agarwal - Director

    Permanent InviteesShri R. S. Pandey - Chief Operations Manager,

    East Central Railways,Hazipur (Bihar).

    Shri M. K. Roy - Addl. Chief Secretary (Forest)Government of Madhya PradeshBhopal.

    Company SecretaryShri D. H. Lalwani

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    NORTHERN COALFIELDS LIMITED(A subsidiary of Coal India Limited)Board of Directors

    (During the year 2010-11)

    Chairman-cum-Managing DirectorShri Vinay Kumar Singh

    Functional DirectorsMs. Shantilata Sahu - Personnel

    Shri N. Das - Technical

    Shri O. P. Mishra - Technical

    Shri S. K. Rawat - Finance

    Part-time Official DirectorsShri Kailash Pati - Economic Advisor, Ministry of Coal, New Delhi.

    Dr. A. K. Sarkar - Director (Marketing), Coal India Ltd., Kolkata.

    Part-time Non-Official DirectorsDr. B. B. Goel - Director (w.e.f. 27.4.2010)Shri J. N. L. Srivastava - Director (upto 22.8.2010)

    Shri V. K. Bhalla - Director (upto 22.8.2010)

    Shri P. Parvathisem - Director (upto 22.8.2010)

    Shri B. N. Pan - Director (upto 27.8.2010)

    Dr. Sheela Bhide - Director (w.e.f. 27.9.2010)Shri S. R. Upadhyay - Director (w.e.f. 18.2.2011)Shri S. Krishnan - Director (w.e.f. 18.2.2011)Dr. Atul Agarwal - Director (w.e.f. 18.2.2011)

    Permanent InviteesShri Chandan Roy - Director (Operations), NTPC Ltd.,New Delhi

    (upto 31.7.2010)

    Shri R. S. Pandey - Chief Operations Manager, East CentralRailways, Hazipur, Bihar

    Shri M. K. Roy (IAS) - Addl. Chief Secretary, Forest Department,

    Govt. of MP.

    Company SecretaryShri D. H. Lalwani

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    NORTHERN COALFIELDS LIMITED(a Subsidiary of Coal India Limited)

    Bankers & Auditors

    BankersState Bank of India

    Allahabad BankUnion Bank of India

    Punjab National Bank

    Statutory AuditorsM/s. P. L. Tandon & Co.,Chartered Accountants,

    Kanpur (U.P.)

    Branch AuditorsM/s. Tasky Associates, M/s. Gupta Jeswani & Co.,Chartered Accountants, Chartered Accountants,Bhopal (M.P.) Gwalior (M.P)

    Registered OfficeP.O.Singrauli Colliery,

    Distt. Singrauli (M.P.) - 486 889.

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    No.NCL/Board/13/11-12/ 17th May, 2011

    To,1 M/s. Coal India Ltd., Member, NCL, Coal Bhawan, 10 N.S. Road, Kolkata.2. Shri N. C. Jha, Chairman, Coal India Ltd., Member, 10, N.S. Road, Kolkata.

    3 Shri A. K. Sinha, Director(Fin), Coal India Ltd., Member, 10, N.S. Road,Kolkata.

    4 Shri V.K. Singh, CMD, Member, NCL, PO. Singrauli Colliery, Dist. Singrauli(MP)

    5 All Directors, NCL Board.6 Dr. Sheela Bhide, Chairperson, Audit Committee, NCL.7 M/s. P. L. Tandon & Co., Chartered Accountants, Westcott Building the Mall,

    Post Box No.113, Kanpur (UP) 208001.

    N O T I C ETWENTY SIXTH ANNUAL GENERAL MEETING

    Notice is hereby given that the Twenty Sixth Annual General Meeting ofthe Members of Northern Coalfields Limited will be held at 11.30 A.M. onSaturday, the 21stMay, 2011 at the Registered Office of the Company atSingrauli Colliery, Distt. Singrauli (M.P.) 486889to transact the followingbusiness:-

    Ordinary Business:1. To receive, consider and adopt the Audited Balance Sheet as on 31st

    March, 2011 and Profit & Loss Account for the year ended 31st March,2011 together with the Directors' Report and Reports of the StatutoryAuditors & Comptroller and Auditor General of India thereon.

    2. To declare Dividend.

    3. To appoint a Director in place of Shri Kailash Pati, who retires in terms ofArticle 33(e)(iii) of the Articles of Association of the Company and iseligible for re-appointment.

    By Order of the Board of DirectorsSd/-

    Company SecretaryRegistered Office :P.O.Singrauli Colliery,Distt. Singrauli (M.P.) - 486 889.

    N o t e :

    1. A member entitled to attend and vote at the meeting is also entitled toappoint a proxy or proxies to attend and vote instead of himself/herself andproxy need not be a member of the Company. In order to be effective, the

    Proxy form duly completed should be deposited at the registered office of the

    Company not less than forty-eight hours before the scheduled time of the

    Annual General Meeting.

    2. Members are also requested to accord their consent for convening the

    meeting at a shorter Notice under section 171(2)(i) of the Companies Act,

    1956.

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    NORTHERN COALFIELDS LIMITED(a subsidiary of Coal India Limited)

    Directors' ReportTo

    The Members/Shareholders,Northern Coalfields Limited,

    On behalf of the Board of Directors, I have great pleasure in presenting the

    26thAnnual Report of Northern Coalfields Limited (NCL) together with the

    Audited Accounts for the financial year ended 31stMarch, 2011.

    PERFORMANCEHIGHLIGHTS OF THE YEARThe highlights of performance for the year 2010-11 are as under:-

    NCL has achieved coal production of 66.25 million tonnes during the

    year 2010-11 with a shortfall of 2.09 percent over actual production of

    67.67 million tones during the year 2009-10. The over burden

    removal of 182.21 million cu.m. was 2.37% more than OBR of

    177.98 million cu.m during the year 2009-10.

    Offtake at 64.208 million tonnes during the year 2010-11 registered ashortfall of 3.69 percent over the despatches of 66.67 million tonnes

    during the year 2009-10.

    Record turnover of ` 7516.03 crores during the year 2010-11 is 3.46

    percent higher than last year's turnover of `7264.84 crores.

    NCL recorded Profit before Tax (PBT) of ` 3956.36 crores during the

    year 2010-11, and has registered a growth of 5.046 percent over

    previous year's PBT of ` 3766.30 crores. Profit after Tax (PAT) too

    reached a level of ` 2445.45 crores i.e. up by 5.176 percent over

    previous year's PAT of ` 2325.09 crores.

    Total Dividend for the year 2010-11 being 825.83% of paid up equity

    share capital, amounting to ` 1467.27 crores against 785.18% of paid

    up equity share capital amounting to `1395.06 crores for the year

    2009-10.

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    Earning per Share (EPS) during the year 2010-11 has gone

    up to ` 13763.78 from ` 13086.39 of previous year.

    Efforts for greening the environment and pollution control continued

    during the year. During 2010-11, 4.82 lakhs saplings have been

    planted. The total saplings planted upto 31st March, 2011 reached

    207.66 lakhs.

    NCL continued to practice the Worker's participation in management,

    as a result industrial relations remained healthy and harmonious.

    Employees' welfare, community development and human resource

    development continued to be focus areas.

    1.0 FINANCIAL REVIEW

    1.1 The Company has achieved a turnover of `7516.03 crores during the

    year 2010-11 against ` 7264.84 crores during the year 2009-10 recording a

    growth of 3.46%. The financial results for the year 2010-11, as compared to

    previous year, are given in the following table: -

    (` in Crores)

    Description 2010-11 2009-10Gross Margin 4329.97 4033.11Less: Depreciation 349.84 239.23

    Gross Profit 3980.13 3793.88Less: Interest & other financial charges 23.77 27.58

    Profit before Tax 3956.36 3766.30Less: Provision for Tax 1510.91 1441.21

    Profit after Tax 2445.45 2325.09Less: Transfer to CSR Reserve 33.83 31.82*

    Transfer to General Reserve 244.54 232.51

    Dividend on Equity Share Capital 1467.27 1395.06Provision for Tax on Distributable Profit 239.57 233.63

    Surplus carried to Balance Sheet 460.24 432.07* Transfer to CSR Reserve for ` 29.47 Crores for 2009-10 regrouped for ` 31.82

    Crores by adjusting surplus carried to Balance Sheet.

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    1.2 Share Capital1.2.1 The Authorized Share Capital of the Company as on 31stMarch, 2011

    remained at ` 1,400.00 crores comprising of 40,00,000, 10% cumulativepreference shares of ` 1000/- each and 1,00,00,000 equity shares of ` 1000/-

    each. The paid-up share capital too as on 31stMarch, 2011 remained

    at ` 177.6728 crores comprising of 17,76,728 equity shares of ` 1000/- each.

    1.3 Transfer to Reserve1.3.1 An amount of ` 244.54 crores, equivalent to 10% of Profit after Tax,

    has been transferred to General Reserve.

    1.3.2 An amount of ` 33.83 crores has been transferred to Corporate Social

    Responsibility Reserve, equivalent to 5% of retained earnings of the previous

    year, subject to minimum of ` 5/- per tonne of coal production of the Previous

    Year.

    1.4 Dividend1.4.1 In addition to the interim dividend already paid @ 225.13%

    amounting to ` 400.00 crores, Directors are pleased to recommend a finaldividend @ 600.70% amounting to `1,067.27 crores on the equity share

    capital. The total dividend amounting to `1,467.27 crores (previous year

    `1,395.06 crores) work out to 825.83% of the paid-up equity share capital

    (previous year 785.18%) i.e. ` 8258.26 per share against ` 7851.83 in

    previous year.

    1.4.2 The pay out on account of dividend would be ` 1,706.84 crores

    i.e. ` 1,467.27 crores towards dividend and ` 239.57 crores for payment of

    income tax on distributable profits.

    1.5 Borrowings1.5.1 The Company has not taken any loan from CIL, Government or any

    financial institution during the year.

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    1.6 Assistance under Coal Sector Rehabilitation Project (CSRP)1.6.1 The Company had received a loan of USD 142.165 million from Inter-

    national Bank for Reconstruction and Development (IBRD) i.e. World Bank

    and Yen equivalent of USD 142.165 million from Japan Bank for InternationalCo-operation (JBIC) for financing the CSRP. The total disbursement under

    CSRP was ` 1234.00 crores (USD 279.06 million).

    1.7 Discharge of Liability towards loans and deferred payment.1.7.1 During the year, JEXIM (JBIC) loan amounting to `57.00 crores (JPY

    1034.64 million) and ` 37.93 crores (USD 8.48 million) towards IBRD loan has

    been repaid. The balance against loan account with CIL under CSRP as on

    31stMarch 2011 stood at ` 739.50 crores.

    1.8 Capital Expenditure1.8.1 During the year 2010-11, NCL has made a capital expenditure

    of `310.53 crores against the budget of `550.00 crores. The expenditure has

    been mainly on acquisition/ addition of HEMM, other plant & machinery and

    on buildings etc.

    1.9 Sales Realisation1.9.1The status of billing and sales realization during the year 2010-11 as

    compared to last year is given below:-

    Year Billing ( Rs. In

    Crores)

    Realisation including

    receipt against dues of

    earlier years

    ( Rs. In crores)

    %

    Realisation

    against

    Billing

    2010-11 8972.50 9000.44 100.31

    2009-10 8415.61 8372.61 99.49

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    1.10 Coal Sales Outstanding Dues1.10.1 The position of coal sales dues outstanding as on 31.03.2011 as

    compared to same on 31.03.2010 is given hereunder:-

    (` in Crores)Consumer As on 31.03.2011 As on 31.03.2010

    UPRVUNL 24.64 19.80

    NTPC 79.61 84.36

    Others 0.41 28.43

    Total 104.66 132.591.10.2 The Total outstanding of Rs. 104.66 crores as on 31.03.2011

    represents 1.17% of gross sales turnover for the year 2010-11 as compared to

    1.58% for the previous year.

    1.10.3 The disputed dues as on 31.03.2011 remained the same as Rs. 4.85

    crores as it was on 31.03.2010.

    1.10.4 In regard to interest on non-payment / delayed payment of coal sales

    dues against coal supplied to UPSEB/UPRVUNL, the award passed by Honble

    Umpire directing UPRVUNL to pay Rs. 132.67 crores in favour of NCL was

    appealed by UPRVUNL before Secretary (Law), Ministry of Law & Justice,

    Government of India. The said appeal was rejected by Secretary (Law) in the

    month of June, 2006.

    1.10.5 Subsequently, UPRVUNL has preferred to file a petition before Honble

    High Court of Allahabad, Lucknow Bench against (i) the office order issued by

    Ministry of Coal, Government of India regarding appointment of Umpires, (ii)

    award passed by Umpire for payment of Rs. 322.96 crores which includes NCL

    share of Rs. 132.67 crores by UPRVUNL to subsidiary companies of Coal India

    Ltd towards interest on delayed payment of coal bills and (iii) order passed by

    Secretary (Law), rejecting the appeal filed by UPRVUNL against award of

    umpire.

    1.10.6 A short counter affidavit challenging the maintainability of the writ

    petition has been filed before Honble High Court of Allahabad Bench. The

    matter is still pending before the Honble High Court.

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    1.11 Securitization of Coal Sales Dues.1.11.1 In the report for the year ended 31st March, 2004, it was

    informed that under the Scheme for One Time Settlement of SEBs dues to

    Central Public Sector Undertakings (CPSUs) introduced by the Central Govt.,8.5% tax free bonds of the State Government for an amount of ` 114.56

    crores were issued by Reserve Bank of India against the outstanding dues of

    UPSEB / UPRVUNL as on 30.9.2001. Out of ` 114.56 crores, ` 57.28 crores (10

    Nos. of Bonds @ ` 5.73 crores) have been redeemed upto 31.3.2011.

    1.12 Payment of Central /State Exchequer1.12.1 Information in regard to contribution made by the Company towards

    the Central and State Exchequer is furnished hereunder: -(` in crores)

    2010-11 2009-10articularsMP UP Total MP UP Total

    Royalty 578.54 167.72 746.26 676.20 149.09 825.29

    Central & State Sales

    Tax

    108.16 131.20 239.36 112.99 109.02 222.01

    Clean Energy Cess 132.38 51.22 183.60 - - -

    Excise Duty 31.57 8.58 40.15 - - -

    Sales Tax on works

    and scraps

    1.98 1.48 3.46 2.27 1.96 4.23

    Entry Tax 7.17 12.78 19.95 6.62 0.07 6.69

    Service Tax 1.40 0.62 2.02 - - -

    Stowing Excise Duty 46.51 17.65 64.16 51.08 15.68 66.76

    SSDA Cess - 11.34 11.34 - 10.26 10.26

    Property Tax 3.27 - 3.27 - - -

    Forest Cess 12.20 - 12.20 16.88 - 16.88

    Professional Tax 2.39 - 2.39 2.35 - 2.35

    Total 925.57 402.59 1328.16 868.39 286.08 1154.47

    1.12.2 The Company has paid an amount of `1,618.79 crores towards

    corporate advance income tax (including TDS) and `215.09 crores towards

    dividend tax during 2010-11, as against `1439.48 crores and `284.93 crores

    respectively, paid during 2009-10.

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    2.0 PRODUCTION PERFORMANCE2.0.1 Production performance for the year 2010-11 against target and in

    comparison with previous year is given below:

    2010-11ProductionTarget Actual

    2009-10Actual

    % achieve-ment

    against tar-get

    % Growthover

    previousyear

    Coal Production(Mt)

    72.00 66.253 67.67 92.02 -2.09

    Offtake (Mt) 72.00 64.208 66.669 89.18 -3.69

    OB Removal (Mm3)- Departmental 127.00 100.04 102.82 78.77 -2.70

    OB Removal (Mm3)-Outsourcing

    121.00 82.17 75.15 67.90 +9.34

    Total OB Removal(Mm3)

    248.00 182.21 177.98 73.47 +2.37

    Composite (Mm3) 294.36 224.80 221.52 76.36 +1.48

    2.0.2 Production and despatch of Coal ,OB removal and productivity during

    2010-11 has been affected mainly due to Environmental, Forestry, HEMMand Outsourcing related issues.

    2.0.3 Delay in forest clearance of Khadia Project led to constrained

    operations in high stripping ratio zone and limited space resulting in less OB

    removal and coal exposure thereby causing shortfall in the coal production.

    2.0.4 Moratorium on Environmental Clearance by MOEF resulting in

    (i) Restricted coal production at Bina Extension and Krishnashila Project to

    6.0 MT and 4.0 MT respectively and (ii) Delay in approval of Jayant andDudhichua Expansion Projects.

    2.0.5 Delay in supply and commissioning of 3 Nos. 20 Cum Shovels and 2

    Nos. 10 Cum Shovels.

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    2.0.6 Poor performance of Shovels/Dumpers supplied by BEML and HEC

    and delay in supply of spares has led to substantial loss of production.

    2.0.7 Outsourcing of OB removal has been far from smooth due to various

    court cases and failure by outsourcing agencies which caused delay in award

    of work. As a result, a total of 26.40 Mm3 OB could not be removed which

    led to a loss of almost 6.0 Mt of coal production during 2010-11.

    2.0.8 Production at Jhingurda OCP was affected due to unforeseen

    geological disturbances causing stressed strata conditions in working area

    forcing restrictive production.

    2.0.9 Production was also affected due to increasing depth and higher

    stripping ratio.

    2.1 Production Programme for the year 2011-12

    2.1.1 The company has finalized a programme for Coal Production of 68.50

    Mill. Te and OB removal of 239.00 Mill.Cum out of which 120.0 M.Cum of OB

    removal has been planned through departmental means and 119.0 M.Cum

    through outsourcing during the year 2011-12.

    2.2. Productivity

    2.2.1 The productivity in terms of output per Manshift (OMS) for the year

    2010-11 is 13.52 tonnes which shows a growth of 2.50 % over last year

    OMS

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    3.0 POPULATION AND PERFORMANCE OF HEAVY EARTH MOVING MACHINES(HEMMS)

    3.0.1 The population of major HEMM together with their performance for the

    year 2010-11 in comparison to previous year is given in the following table:-

    Equipment Population in Nos. % Achievement

    of Availability

    against norms

    % Achievement of

    utilisation against

    norms

    2010-11

    (As on

    31/3/2011)

    2009-10

    (As on

    31/3/2010)

    2010-11 2009-10 2010-11 2009-10

    Dragline 19 19 92.46 91.71 99.24 100.49

    Shovel 104 103 80.61 75.61 69.25 65.61

    Dumper 569 570 90.81 86.97 68.59 71.24

    Dozer 157 157 97.10 98.75 44.59 44.10

    Drill 130 130 100.66 96.27 55.67 56.21

    3.0.2 There is positive growth in %age availability in case of all major

    HEMM like Dragline, Dumper and Drill in the period April10 to March11

    compared to same period last year. However in case of Dozer, it ismarginally less which is expected to be made up in next year.

    3.0.3 There is increase in %age utilization of Shovel and Dozer during the

    period April10 toMarch11 compared to same period last year.

    3.0.4 There is decrease in number of equipment in the category of more

    than 3 months breakdown as given below:

    Number of equipments under breakdown as on

    31.3.2011 31.3.2010

    157 187

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    3.0.5 Number of equipments rehabilitated in the year 2010-11 compared to

    2009-10 is given below:

    Rehabilitation inEquipment

    2010-11 2009-10

    Shovel 1 2

    Dumper 32 20

    3.1 Capacity Utilisation3.1.1 The capacity utilization during the year under report as compared to

    previous year is given below: -

    Description 2010-11 2009-10Capacity in M.cum. 205.41 202.31

    Production in M.cum. 153.63 158.39

    Capacity Utilization

    (%)

    74.80 78.29

    3.2 Condition Monitoring Centre (CMC)3.2.1 At Northern Coalfields Limited production activities goes on round

    the clock, 24 hours in a day and 365 days in a year. High capacity

    equipment of different models and different manufacturers of diversified

    technologies are deployed. Equipment as old as 33 years is also working at

    NCL.

    3.2.2 First step of achieving of this production involves maintaining

    availability of these equipments.

    3.2.3 Quite obviously wear and tear is caused because of continuous

    working of these equipment necessitating reduction of breakdown hours to

    attain availability. As a part of maintenance management, Condition

    Monitoring of different components specifically components subjected to

    continuous wear and tear, misalignment, maladjustment etc. are required.

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    3.2.4 NCL being a remotely located place, help of technical experts,

    laboratory facilities etc are not easily available. Necessity of improving the

    availability, advance methodology of condition monitoring techniques has

    been adopted at NCL and a dedicated Condition Monitoring Cell has been

    constituted. This has proved advantages in following fields, viz:-

    1.Uninterrupted production cycle.

    2.Cutting down of Maintenance time.

    3.Minimizing unwanted replacement of spares.

    4.Minimizing down time of the equipment.

    3.2.5 Since 1988-89 Condition Based Monitoring has been introduced in

    Northern Coalfields Limited with the following objectives:-

    (i) Health stability of equipment: To maintain stable, non-deteriorating, non-degrading operating conditions of the

    equipment.

    (ii) Life extension of equipment: To reduce the rate of; machinedeterioration and decay. This objective offers extended machine

    life.

    (iii) Failure prediction:To predict machine fault at an early stage, wellbefore it goes under breakdown.

    3.2.6 Activities carried out at and by CMC:(1) Condition Monitoring of draglines

    (2) Condition monitoring of rope shovels.

    (3) Condition monitoring of high capacity diesel engine driven

    equipments.

    (4) Used oil analysis and debris analysis of engines, transmission,

    wheel motors of electrically propelled dumpers, gear boxes etc.

    3.2.7 Techniques employed at CMC1. Visual Monitoring

    2. Monitoring of different parameters such as vibration level,

    physical properties, wear debris analysis of used oil,

    temperature, pressure, current & voltage, strip chart recording,

    I.R. values etc.

    3. Current recording

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    4. X-Y recording

    5. Insulation resistance measurement

    6. Bearing temperature

    7. Ventilation air temperature

    8. Commutation of DC machines9. Vibration monitoring

    10. Used Oil Analysis

    11. Spectroscopic Oil Analysis

    3.2.8 Benefits to NCL by Condition Based Monitoring1. Availability of Draglines

    2. Reduction in Bearing consumption

    3. Conservation of engine oil4. Increase in average life of Diesel Engines

    5. Electronic Card Repairing

    3.2.9 In addition to above, CMC renders services like, Health Monitoring of

    Draglines, technical help for fault diagnosis, studies of premature failures

    and emergency support as technical experts.

    3.2.10 Performance in brief of CMC in the year 2010-11 as comparedto 2009-10Year Oil

    Analysis

    Bearing

    Inspecti

    on

    Electronic

    Card

    Repair

    Dragline

    Inspection

    20CuM,

    12.5 CuM

    Electric

    Rope

    Shovel

    Inspection

    Magnotorq

    ue of

    P&H1900

    Shovels

    Need

    Based

    Require

    ment

    2009-10 5492 156 44 25 3 37 10

    2010-11 6062 125 141 27 2 4 37

    3.3 Indigenisation of HEMM Spares3.3.1 As a part of indigenization process, a trial order has been placed for

    indigenous Sleeve Pinion of P&H Electric Rope Shovel.

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    4.0 SALES AND MARKETING PERFORMANCE4.0.1The Offtake for the year 2010-11, against the target and linkage /Annual

    contracted quantity (ACQ) in comparison to the previous year is furnished

    below:-

    2010-11( in Mill Tes)

    Target Linkage/ACQ/

    e-auction

    Actual

    2009-10( in Mill

    Tes)Actual

    % Ach. ofTarget

    % mat. oflinkage/ACQ

    %Growthoverpreviousyear

    72.000 72.000 64.208 66.669 89.18 89.18 (-)3.69

    4.0.2Power Sector remained the main consumers for NCLs coal, accounting

    for more than 96% of the total dispatches. Information in regard to dispatch

    to major consumers of power sector is given below:-

    2010-11 (in Mill Tes)ConsumerLinkage/ACQ Actual

    Mat. oflinkage/ACQ(%)

    2009-10Actual (inMill Tes)

    Growthover

    previousyear (%)

    NTPC 38.700 38.840 100.36 40.405 (-)3.87UPRVUNL 14.641 13.754 93.94 14.461 (-)4.89Total PowerSector 63.195 61.932 98.00 64.640 (-)4.19

    4.1 Supply of Deshaled coal from Bina Deshaling Plant4.1.1 A quantity of 3.332 mill tes of deshaled coal was dispatched from Bina

    Deshaling Plant to IP, Rajghat, Panipat, Kota, Suratgarh, Paricha and Obra

    Thermal Power Stations during 2010-11. The supply of deshaled coal during

    2009-10 was to the tune of 3.521 Mill Tes.

    4.2 e-Auction Scheme4.2.1Ministry of Coal circulated New Coal Distribution Policy (NCDP) in

    Nov.07. For procurement of coal under the said scheme, buyers are to bid

    for both quantity and prices not below the reserve prices, which were fixed

    at 30% above notified prices for different grades of coal w.e.f. April, 2010.

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    4.2.2Quantity lifted alongwith financial gain under the above scheme during

    2010-11 are placed below:-

    Scheme Period QuantityBooked

    Financial gainabove notified

    price (approx)e-auction scheme April10 toMarch11

    16.77 Lakh Tes Rs. 205 Crores

    4.3 Sector-wise and Mode-wise off-take4.3.1The sector-wise and Mode-wise off-take position during the year

    2010-11, in comparison to the last year is given in the following table:-

    ( Fig in Mill Tes)

    Sector/ Mode 2010-11 2009-10

    Sector-wise off-takePower 61.932 64.640

    Others 2.276 2.029

    Total 64.208 66.669Mode-wise off-takeRail (wagon of Indian

    Railways)

    20.285 19.489

    MGR (wagon of power

    houses)

    35.320 38.537

    Ropeway 0.903 1.532

    Road ( External) 4.045 3.181

    Road (Internal)* 3.655 3.930

    Total 64.208 66.669*Raw coal transported by road to Bina Deshaling Plant has been consideredas internal dispatch by road.

    4.4 Wagon Loading4.4.1 Information in regard to average wagon loading through Indian

    Railways against target and as compared to previous year is furnished

    below:-

    2010-11(Box/Day)Target Actual

    2009-10(Box/day)

    Actual

    TargetAchievement

    (%)

    Variancefrom lastyear (%)

    990 1016 981 102.63 (+)3.57

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    4.5 Coal Price Revision4.5.1 During the year 2010-11, coal prices were revised of all grades

    produced from NCL w.e.f. 27.02.2011 (0.00 Hrs) pursuant to CILs pricenotification no. CIL/S&M/GM(F)/Pricing/1907 dated 26.02.2011.

    4.5.2 Coal price revision has been made effective from 00.00 hrs of

    27.02.2011 in respect of coal produced. The salient feature of the said coal

    price revision is that dual pricing system has been started. The coal pricing

    has been devided into two categories, namely a)coal price for power utilities( including IPPs), fertilizers and defence and b) coal prices for consumersother than power utilities ( including IPPs), fertilizers and defence.

    5.0 QUALITY CONTROL5.0.1 To enhance the level of customer's satisfaction, NCL has been

    continuing its efforts to supply, sized quality of coal to the linked customers

    and e-Auction buyers During the year 2010-11 the realization price of coal

    has been more than that of 2009-10 by `78.87 per tonne. Target and actual

    realization (per tonne) in comparison to the last year is shown below:

    5.1 Sampling Arrangement5.1.1 The arrangement of joint sampling and analysis is prevailing for the

    coal supplies to NTPC, Anpara, Obra and Paricha TPSs of UPRVUNL, Kota and

    Suratgarh Power Station of RRVUNL, Rajghat of IPGCL, Panipat TPS of HPGCL

    and Renusagar Power Division of M/s. Hindalco Industries Ltd. at loading end.

    The Joint sampling arrangement is governed by terms and conditions of Fuel

    Supply Agreement (FSA) signed between the different power stations and

    NCL.

    Year 2010-11 Year 2009-10Target

    (`/Tonne)Actual (`/Tonne) Actual (`/Tonne)

    Increase overprevious year

    (`/Tonne)1105.00 1175.28 1096.41 78.87

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    5.2 Sizing of Coal5.2.1 The entire despatch of coal during the year 2010-11 was made after

    proper sizing as detailed below:-

    Means of sizing of coal 2010-11 ( in ) 2009-10 ( in )Through CHP 88.85 90.70

    Through Dozer/Manual 11.15 9.30

    Total 100 100

    5.2.2 With the installation of Interim CHP at BlockB during 2009-10,

    there has been increase in sizing by mechanical means, but during 2010-11

    the same is under repair, resulting decrease in sizing by mechanical means.

    5.3 Weighment of coal5.3.1 During 2010-11 also, 100% quantity of coal was despatched after

    weighment.

    5.4 Quality complaints and action taken thereon5.4.1 During 2010-11 approx., 55 nos. of complaints were received from

    power houses. The nature of complaints were primarily on account of

    oversized/uncrushed coal supplied to the power houses in rakes loaded from

    wharfwall sidings at Krishnashila, Dudhichua and Spur Siding (BlockB).

    Details of complaints received during the last three years are given below:-

    Nature of Complaints (Fig. in nos.)earOversize &

    Extraneous MaterialsPoor quality Foreign

    MaterialsTotal

    2008-09 10 6 Nil 16

    2009-10 27 25 Nil 52

    2010-11 40 15 Nil 55

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    5.4.2 Coal was loaded at spur siding, Krishnashila and Dudhichua Wharfwall

    by pay loaders, after dozing and manual breaking. Adequate measures were

    taken at these projects to ensure proper sizing and quality of coal free from

    stone/shale and extraneous materials being loaded in the rake. But since

    sizing through Dozer crushing and manual breaking is not fully effective itwas difficult to achieve sizing to the full satisfaction of the consumers

    particularly when loading from the above sidings was done round the clock

    including night shifts.

    5.4.3 In reference to above, Interim CHP at BlockB will be recommissioned

    soon and Feeder Breaker at krishnashila is working. The above

    arrangements will increase the crushing/ sizing of coal in order to meet the

    requirements of consumers.

    6.0 STOCK OF COAL6.0.1 The stock of raw coal as on 31.03.2011 was 4.055 Million Tes

    equivalent to 21.61 days of coal production in terms of average daily target

    for 2011-12. The stock of raw coal as on 31.03.2010 was 2.011 Mill Tes.

    6.1 Stock of stores and spares.6.1.1 Information in regard to inventory of stores and spares as on

    31.3.2011, as compared to 31.3.2010 is tabulated as under:-

    Sl.No. Description As on 31.3.2011 As on 31.3.2010(i) Value of Inventory (` in

    crores)

    337.71 362.43

    (ii) Inventory in terms of

    months' consumption

    3.26 3.73

    6.1.2 As may be seen from the above table, there has been a reduction of

    inventory by ` 24.72 Crores as on 31.03.2011 over the corresponding figure

    as on 31.03.2010 due to various measures taken by NCL to control

    inventory. The inventory has also shown reduction in terms of month

    consumption and it is 3.26 months consumption as on 30.03.2011 as

    compared to 3.73 months consumption as on 31.03.2010 and hence a

    reduction by around 12.6%.

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    6.2 Disposal of Scraps6.2.1 As against a target of ` 10 Crores for sale of scraps and unserviceable

    items during the year 2010-11, NCL finalized sale of scrap of

    value ` 27.36 Crores ( inclusive of taxes). The cash realization is `16.70

    Crores ( inclusive of taxes) during 2010-11 . The corresponding figures during

    the financial year 2009-10 was ` 9.96 Crores (inclusive of taxes) towards

    finalization of sale of scraps and ` 7.62 Crores ( inclusive of Taxes) towards

    cash realization.

    7.0 SAFETY7.0.1 NCL is committed to highest standards of safety in its operationskeeping Zero Harm Potential as its objective. The accident statistics for the

    year 2010-11 as compared to previous year are furnished below :

    Sl.No. Particulars 2010-11 2009-10

    1 No. of fatal accidents 8+1* 7+1**

    2 No. of fatalities 8+1* 7+1**

    3 No. of serious accidents 12+1** 10

    4 No. of serious injuries 12+1** 10

    5 Fatality rate per MT output 0.121 0.103

    6 Fatality rate per 3 lakh man shifts 0.643 0.551

    7 Fatality rate per 1000 persons employed 0.494 0.428

    8 Fatality rate per MM3Output 0.181 0.148

    9 Serious injury rate per MT output 0.964 0.787

    10 Serious injury rate per 3 lakh manshifts 0.740 0.611

    11Serious injury rate per 1000 persons

    employed0.035 0.032

    12 Serious Injury rate per MM3Output 0.052 0.045

    * Mining Non-statistical accident** Non Mining accident

    Note:1. Figures for the calendar year 2010 and 2011 (upto March) are underreconciliation with DGMS.

    2. Figures for the calendar year 2009 is reconciled by DGMS vide letterNo.2009/1055/Jabalpur dt.17.3.2010.

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    7.1 Safety Measures & Training7.1.1 Measures taken for improvement in SAFETY STANDARD in mines of

    NCL:-

    1. Special Safety Review Meeting chaired by CMD and Directors with all

    Projects CGM/GM, AGM(M), Staff Officers and ISO members started

    since March10.

    2. Statutory Rules and Regulations implemented religiously and

    strenuous efforts have been made for achieving highest standards of

    safety.

    3. Operations and systems have been planned, designed and monitored

    to materially reduce mining hazards.

    4. Provision made for material and monetary resources needed for the

    smooth and efficient execution of safety plan and distribution of all

    safety appliances regularly.

    5. Deployment of safety personnel wholly for accident prevention work.

    6. Provide appropriate forums with employees representatives for joint

    consultations on safety matters and to secure their motivation andcommitment in safety management through Bipartite, Tripartite

    Committee Meetings at Area and corporate level and

    Seminar/Workshop addressed by Dir. (Tech) and CMD NCL.

    7. The mine inspection by Bipartite Inspection Team consisting of Trade

    Union leaders, Dir. (Tech) alongwith Project official and ISO Members

    is done at regular interval.

    8. Task force has been constituted consisting of Trade Union officials

    and CGM(S&R)separately for mine inspection every month..

    9. A frame work has been set up for execution of the safety policy and

    plans through the Chief General Manager/General Manager/Agent of

    Areas, Managers and other Safety Personnel of the Project.

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    10. Alcohol meters are provided and used in all the three shifts in the

    projects of NCL and persons are checked randomly before allowing

    for duty.

    11. Director (MOC) Shri D.N. Prasad visited Jayant Project and Binadeshaling Plant on 6th February, 2011. He appreciated the efforts

    made by Jayant Project after December 2008 accident looking at the

    improvement of mine profile, wide haul road, proper corridor at coal

    roof level and dragline sitting level as well as dump slope, good

    environmental condition and plantation etc.

    12. Multi-level monitoring of the implementation of the Safety Plans

    through Internal Safety Organisation at Company level and also at

    Area level.

    13. Senior Executives at all levels of management continue to inculcate

    safety consciousness and develop involvement in practicing safety

    towards accident prevention in their functioning.

    14. Continuous education, training and retraining of the employees with

    the Modern Training Aid / Electronic Media/spot training and lectures

    at MTK office.

    15. Regular monitoring of status of implementation of recommendationsof Tripartite Committee, CIL Safety Board, Standing Committee on

    Safety, Parliamentary Committee and Safety Conferences etc..

    16. 1stand 2ndPhase of Safety Audit for the year 2010-11 completed.

    17. Inter mine inspection by Workmen Inspectors alongwith Area Safety

    Officers to observe best practices and implementation of the same in

    their mine.

    18. All incidents, minor, serious and fatal accident are investigated

    including analysis and recommendations are circulated in each

    colliery for implementation, on the basis of investigation.

    19. Accidents/incidences information is circulated between

    projects/Hqrs/and Trade Union representatives within 30 minutes to

    1:30 hours after the occurrence of the same.

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    20. Surprise Back shift inspections by senior officials of Hqrs. and

    surprise inspection team.

    21. All safety executives have been provided with CUG mobile phone.

    22. 06 ( Six) nos. of Safety Circulars prepared in Hindi and circulated to

    all projects during the year 2010-11.

    23. Code of practice for Electrical shut down procedure and for working

    at Electric Pole/over Head Line has been prepared and circulated.

    24. A Workshop held on safety issue on 4.12.10 at CETI NCL Singrauli in

    presence of ED(S&R) CIL and Prof. B.K. Srivastava, HOD(Mining)BHU,

    Varanasi, in which stress was given on dump slope stability and

    formation of NIT.

    25. A meeting called by Director(Tech/P&P) alongwith DMS, Varanasi on

    22.12.10 with all AGM(M), Area Safety Officer, Workmen Inspector &

    ISO Officers to emphasize upon implementation of safety

    recommendations of different committees.

    26. Meeting convened by DMS, Varanasi on 19.11.10 with Principal

    representatives of OB Outsourcing contractors and their SiteManagers, Principal representative of the coal transporters, AGM(M)

    Manager of Mines at NCL HQ. They have been explained the

    concern recommendations of 10thNational Safety Conference.

    27. Family counseling on SAFETY was done at Bina project on

    28.01.2011 under the Chairmanship of Director (Tech/P&P) alongwith

    CGM(S&R).

    28. Special meeting at CETI held on 25.02.11 chaired by Director

    (Tech/P&P) NCL with all Staff Officer (E&M) & (Excv), CollieryEngineer (E&M) and (Excv), Electrical Supervisor and person

    engaged in shut down procedure, maintenance of electrical

    appliances and overhead lines.

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    29. Monitoring of Dragline Dumps:(i) Measurement of Corridors of Dragline OB dump (Dragline sitting

    level, and Coal Roof of Turra seam level) by HQ team.

    (ii) Scheme for Development of guidelines for safe dragline dump

    profile under varying geo-engineering conditions in opencast coal

    mines of NCL for implementation by BIT Mesra, Ranchi under

    R&D programme of CIL has been taken up and is going on.

    (iii) Six no. of Targetless total stations have been procured for all the

    6 Draglines Projects of NCL and are in use.

    (iv) One no. of 3D Laser Scanner has been procured for Jayant

    Project and in use.

    (v)

    Procurement action for Slope Stability Radar has been taken up.

    30. Special training arranged during February11 for safety committee

    members including executives and addressed by CMD and Director

    (Tech/P&P).

    31. A special workshop / brain storming session was held on 30.03.11

    for safety awareness among drivers.

    7.2 Annual Mines Safety Week7.2.1 Like every year, Annual Mines Safety Week 2010 was celebrated from

    17th Jan. 2011 to 23rd Jan. 2011. During Safety Week special safety drive is

    conducted on different subjects.

    8.0 PROJECT PLANNING AND DEVELOPMENT.8.1 Completed Projects:8.1.1 There are fourteen completed coal mining projects in NCL, In addition

    there are three completed OBR Augmentation Schemes and Seven Non

    Mining completed projects costing `5 Crores and above. The details of above

    projects are given below:-

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    S.N Name of the Project Capacity(Mty)

    SanctionedCapital(Crs)

    Sch. dt. ofCompletion

    Actual dateof

    CompletionMINING1 Bina 4.50 168.64 3/87 3/88

    2 Jayant 10.00 375.04 3/91 3/903 Amlohri 4.00 527.11 3/93 3/934 Kakri 2.50 137.80 3/91 3/935 Dudhichua Phase-I

    (Merged with Dch Expn.10Mty)

    5.00 289.68 3/93 3/93

    6 Jhingurda 3.00 63.11 3/87 3/877 Gorbi (Closed) 1.00 7.70 3/76 3/768 Gorbi-B (Closed) 0.60 19.18 3/90 3/909 Gorbi Expn.(Merged with

    Gorbi) - Closed1.50 19.26 3/89 3/89

    10 Nigahi Phase-I(Merged with NigahiPhase-II 10Mty)

    4.20 648.04 3/95 3/95

    11 Khadia 4.00 588.75 3/94 3/9712 Dudhichua Expn. OC

    (RCE)10.00 1281.39 # 3/04 3/04

    13 Nigahi Expansion,OC 10.00 1846.49 # 3/04 3/0414 Kakri Coal Aug.

    Scheme,OC0.50 48.79 3/04 3/06

    OBR AUGMENTATION SCHEMES1 Jayant OBR Scheme 41.26 3/96 3/962 Jhingurda OBR Scheme 42.98 3/96 3/963 Bina OBR Scheme 48.28 3/01 3/00

    NON-MINING1 Central Workshop 68.72 03/02 3/022 Integrated Water Supply

    Scheme18.87 3/89 3/89

    3 Nehru ShatabdiChikitsalaya

    19.91 4/97 8/02

    4 Communication Scheme 5.04 4/96 3/965 Water Supply Scheme

    Phase-I&II9.28 4/99 06/98

    &04/99

    6 Bina Deshaling Plant 16.69 8/97 08/977 132 KV SS Madhauli(RCE) 5.43 03/01 03/01

    #Including the sanctioned capital of Nigahi Phase-I (4.2 Mty ) andDudhichua Phase-I (5.00 mty).

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    8.2. On-going Projects and Schemes.8.2.1 At present five mining project costing `100 Crs. and above are under

    implementation as mentioned here under:

    S.N. Name of the Project Capac

    ity

    (Mty)

    Sanction

    Capital

    (Crs)

    Sch. dt.

    of

    Completi

    on

    Ant. dt.

    of

    Completi

    on

    MINING1 Krishnashila OCP 4.00 741.56 3/2013* 3/2013

    2 Amlohri OCP 4.00+

    6.00

    1143.54 3/2016 3/2016

    3 Block-B OCP 3.50 437.34 3/2015* 3/20154 Bina Extn. 6.00 168.97 3/2014 3/2014

    5 Nigahi Expansion

    ( Incremental-5Mty)

    5.00 259.40 3/2012 3/2012

    * RPR has been approved by NCL Board and is presently under

    consideration of CIL Board.

    8.3. (i) Future Programme & New Projects:8.3.1 The estimated coal production programme during the terminal year of

    XI Plan i.e. 2011-12 is 68.50 million tonnes. The New Opencast Projects

    envisaged during X, XI and XII plan period identified in NCL command area:

    X Plan Project:Khadia Expansion OCP (4.0 to 10.0 mtpa)

    XI Plan Project:1. Dudhichua Expansion OCP (10.0 to 15.0 mtpa)

    2. Jayant Expansion OCP (10.0 to 15.0 mtpa)

    XII Plan Project:1. Semaria OCP (2.00 mtpa)

    2. Bina-Kakri Amalgamation OCP (10.0 mtpa)

    3. Block-B Expansion OCP ( 8.00 Mtpa)

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    8.3.2 The Status of Approval of Project Report (PR)/ Advance Action Proposal

    (AAP) and Environmental Management Plan (EMP) of these projects is given

    below:

    X Plan ProjectKhadia Expansion OCP (4.0 to 10 MTPA):a) Project Report PR):

    Updated Expansion PR prepared by CMPDIL at estimated capital outlay

    of `1131.28Crs (Incremental) for additional OB outsourcing with

    Dragline OB and coal departmental option has been approved by NCL

    Board in its 158thmeeting held on 05.04.2011 and recommended for

    approval of CIL Board.

    b) Environmental management Plan EMP):EMP has been approved by MoEF vide letter no.J-11015/255/2006-

    IA.II(M) dated 10/04/07.

    c) Forest land 180 Ha in MP):180 Ha in MP Side: Stage-II approval under Section-2 of ForestConservation) Act,1980 communicated by Secretary (Forest), Madhya

    Pradesh vide letter dt. 13.10.10.

    XI Plan Project:1. Dudhichua Expansion OCP (10.0 to 15.0 mtpa):

    a. EPR of Dudhichua 10 to 15 mtpa was approved by NCL Board

    in its meeting held on 20-7-08 with outsourcing option with an

    capital outlay of `326.57 Crs

    b. EMP & Forestry clearances for expansion project are to be

    obtained before final approval of the Project.

    c. 443 Ha. Forest land is required for incremental 5 Mtpa as per

    EPR of 15 Mtpa. This land has been notified under Section 9 of

    CBA (A&D) Act 1957.

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    d. Form-I for EMP clearance for expansion project has been

    submitted to MOEF on 10th Feb2011.However, moratorium

    imposed by MOEF on Singrauli industrial clusters has been

    extended upto 30thSept2011.

    2. Jayant Expansion OCP(10.0 to 15.0 mtpa):a. EPR of Jayant 10 to 15 mtpa was approved by NCL Board

    meeting held on 07/6/08, PIB note submitted to MoC vide a

    letter dt.08/02/09. As per communication received from MoC,

    CIL is empowered to evaluate and sanction the project.

    b. EMP & Forestry clearances for expansion project are to be

    obtained before final approval of the Project.

    c. Forestry clearance is to be obtained for 120 Ha. land which is

    required for incremental 5 Mtpa as per EPR of 15 Mtpa. Out of

    this, 26 Ha. Forest land has already been notified under Section

    9 of CBA (A&D) Act 1957.For balance 94 Ha. Forest land ,

    Gazette publication under section 7 has been done.

    d. Form-I for EMP clearance (18.75 Mtpa) for expansion project has

    been submitted to MOEF on 10th Feb2011. However,

    moratorium imposed by MOEF on Singrauli industrial cluster

    has been extended upto 30thSept2011.

    XII Plan Project:

    1. Semaria OCP (2.00 mtpa):Project report prepared by CMPDIL is under Stage-I approval by

    NCL Board.

    2. Bina-Kakri Amalgamation OCP (10.0 mtpa)Draft Project Report has been submitted by CMPDIL.

    3. Block-B Expansion OCP ( 8.00 Mtpa):Project Report is under preparation by CMPDIL.

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    8.4 Exploration & Drilling:The drilling for geological exploration is done through CMPDI, RI-VI.

    ( in Meters)

    2009-10 2010-11 2011-12

    Actual Target Actual Target

    CMPDI 14993 16000 17954 16100

    MECL 17378 53000 13086 53000

    8.5 Status of Excavation of Overburden by Hiring of Equipment

    Name of

    the Project

    AwardedQuantity

    (MBCM)

    Date of Com-

    mencement

    Scheduleddate of

    completion

    Contract

    Awarded to

    Jayant OC 27.66 11.07.2009 10.07.2012M/s Madhucon

    Projects Ltd.

    Amlohri OC 97.80 01.03.2011 29.02.2016

    M/s B.

    Girijapathi

    Reddy & Co.

    Bina Exten-

    sion45.369 17.01.2011 16.01.2014

    M/s Monte Carlo

    Construction

    Ltd.

    Block-B 64.43 01.06.2010 31.05.2015

    M/s National

    Construction

    Co.

    Dudhichua 49.00 03.12.2010 02.03.2014M/s JP-ASD-

    DHOLU(JV)

    Kakri 29.24 28.02.2010 27.02.2013M/s Rungta

    Projects Ltd.

    Khadia 26.67 16.03.2010 15.03.2013M/s Sadbhav

    Engg. Ltd.

    Krishnashila 28.19 05.05.2010 04.05.2013

    M/s Sushee Hi-

    Tech Constns.

    Pvt. Ltd.

    Nigahi 54.00 20.02.2011 19.02.2014M/s Saumya

    Mining Ltd.

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    9.0 ENVIRONMENTAL PROTECTION9.1 Management of NCLs Economic, Environmental, and Social Concerns:9.1.1 Integrated Management Manual have been approved, authorized and

    released by CMD, NCL from 01.07.2009 which defines the company-wide

    management system of Northern Coalfields Limited complying with

    international standards ISO 9001, ISO 14001, OHSAS 18001, and SA 8000.

    This manual now supersedes NCLs separate EMS Manual and Quality Manual

    that were issued on 24thMarch 2000 and 29thJuly 2005 respectively. Hence

    Environmental Policy declared under earlier EMS and Quality Policy declared

    under earlier QMS has been replaced by Corporate Management Policy

    declared under IMS.

    9.2 NCLs CORPORATE MANAGEMENT POLICY9.2.1 We have voluntarily chosen to implement a comprehensive system for

    simultaneous management of our economic, environmental, and social

    concerns as a part of our business agenda.

    9.2.2 NCL is committed to:

    1. Assured quality of coal supplies.2. Optimum utilization of available resources.

    3. Continual improvement in the management and performance of

    system.

    4. Ensuring prevention of pollution, injury and ill health due to work

    activities.

    5. Comply with all applicable legislations and other subscribed

    obligations.

    6. Respect all ILO and other international charters on social and

    labour issues.7. Promoting importance of the concept of sustainable development.

    8. Ensure that this policy is effectively implemented, maintained, and

    communicated.

    9. Review this policy regularly to ensure its continual improvement

    and relevance.

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    10. Make this policy accessible in a comprehensible form to all

    personnel engaged for NCL in any manner.

    11. Make this policy publicly available in an effective form and manner

    to all interested parties, upon request.

    9.3 Environmental Conservation Measuresa. Compensatory Afforestation:

    Earlier compensatory afforestation was done over equivalent area of

    non-forest land. Presently there is a special provision for Central

    Govt./Central Govt. Undertaking projects, according to which

    compensatory afforestation may be raised on de-graded forest land

    twice in extent of forest area being diverted. The State Govt. is to

    identify blank forest or degraded forest lands for compensatory

    afforestation and the user agency has to deposit the amount for

    compensatory afforestation with the concerned State Govt.

    During the year under report, no further land was identified by NCL for

    the purpose of compensatory afforestation and it remained at last

    years level of 4320 ha. Also no payment was mde to Forest

    Department for compensatory afforestration, NPV etc. and total

    amount deposited upto 31.3.2011 remains `56.06 crores.

    b. Social Afforestation:This Company has taken up massive afforestation in mining areas,

    residential colonies, along road side etc. as a result the entire area has

    turned into a lush green field and has been playing a vital role in

    checking air, water and noise pollution.

    c. Technical and Biological Reclamation:After achieving height OB dumps are technically reclaimed by

    terracing/steps in slope and then saplings are planted thereon for

    stability and to check soil erosion. During the year 2010-11, an area of

    99.56 ha. has been reclaimed, as a result the total area reclaimed up

    to 31.3.2011 reached 2894 ha.

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    Under Social afforestation and biological reclamation 4.82 lacs saplings

    were planted during the year 2010-11. The total number of plants

    planted upto 31.3.2011 reached to 207.66 lacs. The plantation work in

    the projects situated in MP is carried out through MP Rajya Van VikasNigam and in the projects situated in UP through the Renukoot Forest

    Division, Forest Department, Govt. of UP.

    9.4 Pollution Control MeasuresI) Air Pollution Control Measures(i) Automatic sprinklers, installed at receiving pits are actuated

    through sensors Fixed sprinklers for coal bunkers, transfer points

    and loading points are operated through valve controls.(ii) Dust cyclones are provided at the bottom of receiving pit of the

    crusher house.

    (iii) Fully enclosed Coal Handling Plants are provided to reduce coal

    dust emission outside CHP.

    (iv) Drills are provided with dust extractors

    (v) Approach roads to mines and service roads are provided with

    black topping to reduce dust generation.

    (vi) Road side water sprinklers of fixed and mobile types are deployedfor dust suppression on haul roads.

    (vii) Thick green belts; tall plants with broader leaves have been

    provided as curtain at mine boundary to arrest air borne dust.

    Numbers of trees planted till 2010-11 is 2.0766 crores.

    (viii) Non-active Over Burden (OB) dumps are provided with vegetative

    cover to prevent dust emission under OB Dump reclamation plans.

    (ix) Dust proof cabins have been provided for operators in Heavy Earth

    Moving Machines. Dust masks have been provided to employeesexposed to dust.

    (x) Fire hydrants system has been installed for CHPs and coal dumps.

    (xi) Moist coal is loaded to Merry Go Round (MGR) through Rapid

    Loading System.

    (xii) Routine maintenance and periodic overhauling of HEMMs are done

    to reduce gaseous emission.

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    II) Water pollution control measuresWater pollution control has been done through Silt Arrestors, 10

    Effluent Treatment Plants (ETPs) for effluent generated from Mine,

    Workshops, CHPs and 8 Domestic Sewage Treatment Plants (DSTPs)

    for colony sewage of working mines are in operation. Updation of cost

    estimates of Scheme for design and construction of DSTP at NCL (HQ),

    Singrauli has been entrusted to CMPDI, Ranchi. Scheme for design and

    construction of ETP at Block-B has been submitted by CMPDI, Ranchi

    and action for preparation of NIT for construction is being taken by

    Civil Deptt., NCL, HQ and Scheme for design and construction of DSTP

    at Block-B is being prepared by CMPDI, Ranchi.

    (i) Effluent Treatment Plants (ETPs):Integrated Effluent treatment Plants is designed for treatment of

    discharge from mine, workshop and CHP. The plants contain oil and

    grease recovery system through traps, removal of suspended solids

    through clarifiers after chemical dosing at flush mixer, sludge drying

    beds, conveyance line and pumping arrangements. Treated water is

    re-used for tanker filling, sprinklers and industrial purposes. Dried

    sludge is buried in lined pits.

    (ii) Domestic Sewage Treatment Plants (DSTPs):Domestic Sewage Treatment Plants have been constructed in

    townships with activated sludge process. The plants contain aeration

    units for oxidation, clarifiers for removal of suspended solids, sludge

    drying beds, grit removal facilities, sewer lines, manholes, pump

    houses, control room, etc. Treated water is re-used in horticulture/

    agriculture and construction activities. Dried sludge, valuable manure

    is used in agriculture.

    (iii) Silt Arrestor:Substantial amount of silt is carried along with the run off water. Catch

    drains with silt arrestors are provided in mine areas and are cleaned at

    regular intervals. Check dams and siltation ponds are provided to

    arrest silt flowing to the water course. Gabions (loose stones packed in

    wire crates) with filter pad at toe of the active dumps and across water

    course, protect against escape of silt into the water body.

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    (iv) Oil recoveryFloating oil, recovered from Oil and Grease traps is collected in drums

    which are stored in a raised paved area having drains to collect back

    spillages. Used Oil collected during maintenance of vehicles and

    HEMMs are collected and stored in lid tight leak proof drums.

    Permission has been sought from State Pollution Control Board (SPCB)

    for handling used/ spent oil. Used oil stored in drums are sold through

    Metal Scrap Trading Corporation, a Govt. of India Undertaking, by

    press advertisement to the parties having requisite license for

    refining/ reuse.

    (v) Disposal of Hazardous WastesHazardous Waste of Category 5.1 i.e. Used Oil is sold through M

    Junction, Kolkata by e-auction to Authorised Recycler and Category 5.2

    i.e. Oil soaked solid wastes like cotton waste, Jute, filters, hoses soil

    etc. are disposed at MSDS authorized by SPCB.

    (III) Noise Pollution Control Measures(i) Blasting operations are carried out between 12:00 to 14:00 hours

    only i.e. during change of shifts.

    (ii) Ear-muffs and ear-plugs are provided to employees wherever

    required.

    (iii) Curtain plantations have been provided in and around colonies

    and along mine boundaries.

    (iv) Routine maintenance of all equipments.

    9.5 Impact of above measures on pollution :Air Pollution Control Measures and Water Pollution Control Measures

    have been adopted to maintain air and water quality within permissible

    limit as per guidelines stipulated by State Pollution Control Board and

    Ministry of Environment and Forest, statutes and legislation applicable

    to coal mines. Noise Pollution Control Measures have been adopted to

    maintain noise level within permissible limit. The results of monitoring

    have been found within permissible limits.

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    10.0 ISO ACCREDITATION(A) Integrated Management System certificate:

    The company has implemented Integrated Management System

    complying ISO 14001:2004 for Environmental Management System(EMS), ISO 9001:2008 for Quality Management System (QMS), OHSAS

    18001:2007 for Occupational Health and Safety Assurance System and

    SA 8000:2008 for Social Accountability. M/s QMS Certification Services

    Pvt. Ltd. have recommended for continuation of certification for ISO

    14001:2004 and ISO 9001:2008 for corporate level including all OCPs

    and other Units of NCL under IMS in NCL since 7.7.2010.

    (a) ISO 14001:2004 Certificate:Lead Auditor of M/s QMS Certification Services Pvt. Ltd. hasrecommended for approval and certification for compliance with the

    ISO 14001:2004 International Standard for implementation of

    Company wide Environmental Management System including all

    Projects, units and HQ.

    (b) ISO 9001:2008 Certificate:Lead Auditor of M/s QMS Certification Services Pvt. Ltd. has

    recommended for approval and certification for compliance with the

    ISO 9001:2008 International Standard for implementation of Companywide Quality Management System including all Projects, units and HQ.

    (c) OHSAS 18001:2007 Certificate:Lead Auditor of M/s QMS Certification Services Pvt. Ltd. has

    recommended for approval and certification for compliance with the

    OHSAS 18001:2007 for implementation of Company wide

    Occupational Health and Safety Assurance System including all

    Projects, units and HQ.

    (d) SA 8000:2008:Ing. Luca Valli, CISE-Director has informed on 21.3.2011 that on 14 th

    March 2011, the certification process followed with the on field

    implementation of the 2nd audit stage during which no request for

    Major Corrective Actions- CARs- (that may prevent the certificate

    issue) arisen. The organization is awaiting for the Certification

    Committee to resolve the issue of the certificate.

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    11.0 HUMAN RESOURCE DEVELOPMENT & INDUSTRIAL RELATIONS11.1 Manpower11.1.1 Manpower strength of the Company (excluding apprentices under

    the Apprentices Act, 1961) as on 31stMarch, 2011 was 16209 against 16373

    as on 31stMarch, 2010. The break-up of manpower strength is given below :

    (Fig. in Nos.)

    Sl.No. Particulars as on 31.3.2011 as on 31.3.20101 Executives 1710 1294

    2 Supervisors 1608 1902

    3 Clerical Staff 1166 1196

    4 Highly skilled/skilled 8290 8357

    5 Semi skilled/unskilled 3435 3624

    Total 16209 16373

    11.2 Human Resource Development11.2.1 Human Resource Development in NCL continues to be a focus area

    with following objectives : Providing learning opportunities to the employees to narrow down

    performance gaps.

    Assessment of training needs of employees and review/ revise training

    programmes accordingly.

    Organising need based Management Development Programmes for

    employees.

    To develop training/ reference materials and to organise special

    programmes on new equipments for all level of employees.

    Developing the unskilled workmen as skilled workmen through basictrade training.

    To organise training programmes, seminars, workshops for all levels of

    executives of the Company to address the contemporary issues.

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    11.2.2 NCL has a Central Excavation Training Institute (CETI) at

    Singrauli and nine Vocational Training Centers (VTCs) in different projects.

    Need based training is provided to workmen, operators, supervisors and

    front line managers The major training programmes conducted centrally at

    CETI are as under:-

    Basic courses for HEMM (Dumper, Shovel and Dozer) Operators,

    technicians and unskilled workers

    Refresher courses for HEMM (Dumper, Shovel and Dozer) Operators

    and technicians.

    'Original Equipment Manufacturers Programmes on technologyupgradation.

    Supervisory Development Programmes both Managerial and Technical.

    Management Development Programmes for executives.

    Workers' Development Programmes including Leadership Development

    Programmes.

    Basic Computer Learning courses for executives, supervisors & other

    staff.

    Structured Training Programme for Mining and Excavation Supervisors

    Training Programmes for Safety Committee Members and Workmens

    Inspectors

    Special programmes on contemporary issues.

    11.2.3 CETI organised 35 workshops and seminars during the year 2010-11

    for middle and senior level management groups and staff focusing on

    contemporary issues. The statutory training requirements are met by VTCs.

    Senior executives of the Company were sent to Indian Institute of Coal

    Management (IICM), Ranchi an Apex Training Institute of CIL for meeting

    their training requirements.

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    11.2.4 Information about the persons who underwent different training

    programmes during the year 2010-11 as compared to the year 2009-10 is

    given hereunder:-

    Sl.No. Particulars 2010-11 2009-10i) Number of persons trained through

    Vocational Training Programmes at VTC.

    12904 11205

    Number of persons trained at CETI: -

    (a) Regular training programmes 1785 1681

    ii)

    (b) Workshops & Seminars 1845 1216

    TOTAL 3630 2897Number of persons trained through outside company

    programmes in India.

    a) General / Advanced Management

    courses

    392 238

    iii)

    b) Techno-managerial courses 90 62

    TOTAL 482 300Number of persons trained abroad: -

    a) General / Advanced Management

    courses

    7 3

    iv)

    b) Techno-managerial courses - -TOTAL 7 3

    11.3 Reservation for Scheduled Castes (SCs) / Scheduled Tribes (STs) andOther Backward Classes (OBCs) in recruitment and promotion.

    (i) RecruitmentThe Presidential Directives in the matter of recruitment of Scheduled

    Castes (SCs), Scheduled Tribes (STs) and Other Backward Castes (OBCs)have been implemented in NCL.

    (ii) PromotionA total of 326 candidates belonging to SC community and 142 candidates

    belonging to ST community were promoted during 2010-11.

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    The representation of SC and ST candidates in total manpower are as

    under:-

    SC Candidates ST Candidatess on Total ManpowerNumber in Number in

    31.3.2011 16209 2395 14.77 1051 6.48

    31.3.2010 16373 2469 15.07 1057 6.45

    11.4 Appointment of Land Oustees.11.4.1 During the year 108 Land Losers were appointed. The strength of

    Land Losers in the company up to 31stMarch 2011 is 4004 which represents

    24.70% of total manpower of 16209.

    11.5 Workers' Participation in Management11.5.1 The workers' participation in management in NCL is fully operative

    in all wings of our Company. The Joint Consultative Committees (JCC) is also

    operating at Corporate as well as Project/Unit levels. The meetings of JCC

    are held regularly, where important issues are discussed threadbare viz.

    production, productivity, safety, cost, welfare etc. Besides, other

    Committees/Boards viz. Safety Committee, Welfare Board, Medical Advisory

    Board, House Allotment Committee, Canteen Committee etc. are also

    functioning in our Company. The Trade Union Representatives very actively

    participated in such Committees.

    11.6 Industrial Relations11.6.1 Industrial relations in our Company continue to be highly cordial and

    harmonious. The participative style of management facilitates in settling the

    disputes/grievances amicably through discussions. This results in the overall

    Industrial Relation as most healthy. However, few incidents, which are of

    Coal India and all India nature are tabled below :

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    Sl.No. Particulars 2010-11 2009-10No. of Strikes -

    a) Complete NIL NIL

    1.

    b) Partial 3 NIL

    Law & Order disturbances -

    a) Relay Hunger strike NIL NIL

    b) Dharna/Demonstration 24 23

    c) Assault NIL NIL

    d) Rowdism NIL NIL

    e) Gherao NIL 1

    f) Obstruction 3 5

    2.

    g) Non Co-operation

    activities

    NIL NIL

    3. Mandays Lost 5888 0

    Loss of Production -

    Coal (Tonne) 27167 0

    4.

    O.B. (Cu.M.) 6971.10 0

    12.0 Employees Welfare and Social Amenities.

    12.0.1 In NCL proper attention is given towards employees welfare andefforts are made for improvement in welfare and social amenities, like

    housing, water supply, medical, educational, recreational facilities etc.

    12.1 Housing & Township12.1.1 The total number of standard houses, as on 31.03.2011 are 16171,

    which provides 100% housing satisfaction. However, taking into account the

    2477 non-standard houses also, the total number of houses is 18648.

    Excluding the 1110 houses allotted to different agencies balance available

    houses being 17538, provides 100% housing satisfaction to the employees.

    12.2 Water Supply12.2.1 The total population of 93240 has been covered under the water

    supply arrangement upto 31stMarch, 2011. In regard to availability of water,

    there is 100% satisfaction to the employees in the company.

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    12.3 Educational Facilities12.3.1 The Company had established 7 DAV Public Schools, 2 Central

    Schools and 1 Delhi Public School. Besides, one feeder self-financing DAV

    Public School is also running in Central Workshop, Jayant. Other Schoolsrunning in this area are also supplementing the educational facilities. The

    number of School going children are 23988 and 65 buses are available for

    them. An amount of ` 1297.32 lakhs was incurred on educational facilities

    during the year, as against `880 lakhs incurred last year.

    12.4 Medical Services12.4.1 To fulfill the concept of Health is Wealth, NCL is giving special

    thrust to upgrade the existing facilities to match with a Corporate Hospital,

    so as to give best possible treatment to the employees and their dependent

    family members besides the local population in NCL command area.

    12.4.2 NCL is having three hospitals with a total bed strength of 200 as

    indicated below:-

    (i) Nehru Shatabdi Chikitsalya (NSC) - 150 beds

    (ii) Central Hospital and Diabetic Care Centre - 35 beds

    (iii) Bina Hospital - 15 beds

    12.4.3Nehru Shatabadi Chikitsalaya (NSC)NSC is functioning as a Referral Specialised Hospital, with secondary

    care in most of the disciplines and Tertiary care in few of the fields like

    Nephrology, Non Invasive Cardiology, Diagnostic Upper GI Endoscope,

    Diabetes Mellitus and Laparoscopy etc is provided. NSC has achieved

    milestone in the fields like MRI, CT scan, Ultra-sound, Mammography,

    Dialysis, Emergency Medical Treatment, Laparoscopic Surgery, Endoscopy,TMT etc. Apart from the above, the few of the remarkable facilities are being

    added in NSC for the benefit of the patients CT Scan, MRI, Dialysis,

    Pacemaker implantation, Laparoscopy, Gynecology and Obstetrics,

    Pediatrics, Orthopedics, Dental, ENT, Eye and Minimal Invasive Surgery etc.

    The patients from all the project dispensaries and nearby villages are being

    referred to this hospital for taking treatment related to above diseases.

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    12.4.4Central Diabetic ClinicsConsidering the increase of Diabetic patients, Central Diabetic Clinics

    have been started in NSC and Central Hospital, Singrauli where patients are

    treated with Diabetic Foot Care System, one of the Ultra Modern methods in

    diabetics. Since the diet control is very important for any sugar patients, the

    patients are advised/ counselled for a controlled diet by a qualified Dietician.

    12.4.5. Project DispensariesBesides the above Hospitals, each Project is having one Dispensary to

    cater the need of the employees and their dependent family members

    12.4.6 Yours Company is organizing various camps i.e. Free (IOL) Eye

    Camp, Deafness reduction Camp, Pediatrics Health Camp and Breast Feeding

    Promotion, Family Planning Camp, Cancer Detection Camp, Diabetes

    Detection Camp, Hypertension Detection Camp, Urology Camp, Filariasis

    Camp, Free Mammography Camp, Laparoscopic Surgery Camp, Plastic

    surgery Camp, Voluntary Blood Donation, HIV-AIDS Awareness and Free

    Health Check-up of Daily labourers throughout the year. In these camps

    very renowned Surgeons, Physicians, Experts from reputed hospitals like

    SGPGI, Lucknow, IMS- BHU, Varanasi, AIIMS, New Delhi, CMCH Vellore, Max

    Heart, New Delhi are invited to perform surgeries and consultation as well as

    to give lectures. Large number of poor people of nearby villages including

    PAPs are benefited in these camps free of cost. Besides our Doctors and

    para medical staff are also highly benefited from the Workshops, Seminar

    etc. There were 118 camps held throughout the year in rehabilitation

    villages where numbers of beneficiaries were 4052. Mobile Dispensary from

    Singrauli Hospital made 147 visits and number of patients attended its

    services were 2254. Free consultations were given through all the dispensary

    and hospital of NCL to 10689 patients. All these were done under Corporate

    Social Responsibility (CSR).

    12.4.7 Company as a corporate citizen spent a sum of `8,36,140.80/-

    towards providing free treatment to 74 patients who were underprivileged,

    needy and people who were living below poverty Line.

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    12.4.8 A record number of 2184 major operations and 1536 minor

    operations have been carried out in NCL successfully for various diseases

    during the year under review by our Expert Surgeons as against 1902 and

    1369 major and minor operations respectively done last year.

    12.4.9 Initial Medical Examination, Master Health Check-up and Periodical

    Medical Examination are being done regularly for all the employees of the

    Company as per recommendation of 10th Safety Committee to prevent life

    style diseases and to take timely action for the diseases so detected.

    12.5 Social Activities(i) Games and SportsAdequate infrastructure has been developed in the Company for

    promoting games and sports. There are four Stadiums one each at Bina,Jayant, Nigahi and Singrauli with necessary facilities to organize the

    sports/tournaments. To encourage physical fitness amongst employees,

    few multi Gyms have been established at different projects/units. NCL

    has been conducting 13 different sports activities for its employees. NCL

    is also organizing various camps for sports events such as Football,

    Cricket and Badminton etc. to NCL employees dependants. Some of the

    Invitation Competitions have also been organized in which National and

    International level sportsmen have participated.

    (ii) Recreational facilitiesIn NCL, adequate recreational facilities for the employees and their family

    members have been developed. Each project/unit have their own

    Officers/Workers Institute with well equipped material such as Furnitures,

    Utensils, Indoor Sports Material etc. Matching grant are also provided.

    12.6 Socio-economic contribution12.6.1 The company had already developed six rehabilitation sites viz. 3 in

    UP (Rehta, Ambedkar Nagar and Jawahar Nagar), 3 in MP (Chandrapur,Nandgaon and Jaitpur) and one more new site is under consideration for

    development for resettlement of Project Affected Persons (PAPs) with

    necessary civic amenities linked with BlockB Project. During the year, no

    pattas were issued. 299 families were paid cash in lieu of plot. The total no.

    of pattas issued and cash paid in lieu of plot upto 31stMarch, 2011 reached

    2003 and 957 respectively. Total number of families rehabilitated is 2960,

    out of which 2580 families were shifted till 2010-11.

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    12.7 Mahila Mandal12.7.1 Mahila Mandal a Social Organisation of ladies of NCL is also

    actively participating in the field of social work. It has been conducting Adult

    Education Classes at Ambedkar School, Singrauli and providing uniforms and

    books to the participating ladies. Masala Udyog and Handloom Training

    Centre are also being run with the help of Mahila Mandal. Mahila Mandal

    also made drinking water arrangement at various places during the summer

    season. A Computer Education Center for the women is also being run by

    Mandal.

    12.8 Family Welfare12.8.1 During the year under review, 311 Operations were conducted

    successfully under the Family Welfare Programme of NCL covering entitledand non-entitled patients of NCL and nearby areas of Singrauli.

    13.0 RAJBHASA IMPLEMENTATION (OFFICIAL LANGUAGE POLICY)13.1 The Annual Programme 2010-11 issued by the Government of India,

    Ministry of Home Affairs, Rajbhasa Deptt., in which the emphasis is given on

    sustainable and maximum use of Hindi by employees in the official work

    working in Central Govt. and State Govt resulted in significant improvement

    in Rajbhasa Implementation was achieved.

    13.2 In high level meetings of the Company such as meetings of Joint

    Consultative Committee, Welfare Board and in Meetings with Trade Unions,

    the proceedings were held in Hindi and minutes of the meetings were also

    issued in Hindi. Correspondence with the different offices of Central Govt.

    and State Govt. were done in Hindi. Emphasis was laid to ensure

    implementation of Section 3(3) and Rule-5 of Rajbhasa Act, 1963 in which

    the reply to letter received in Hindi is to be sent in Hindi only. An English

    Civil Manual is translated in Hindi and made available bilingual. At CETI,

    training programme was organized in Hindi and training material in Hindiwas distributed amongst the trainees. For easy and convenient working

    performance in Hindi, 04 Rajbhasa Workshops were organized and 41

    executives/workers were nominated for advance Hindi Training at Central

    Hindi Training Organisation, New Delhi. In the recruitment cell, bilingual

    question papers were provided and relaxation was given to the candidates to

    reply in Hindi during the Interview.

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    13.3 During the inspection done by Director, Rajbhasa Implementation

    Office (Central), Bhopal for Rajbhasa Implementation in NCL, the status of

    Rajbhasa Implementation was found much better and satisfactory. Six offices

    of NCL were inspected by a Committee constituted in NCL for properimplementation of Rajbhasa Policy and suggestion were also given for their

    betterment. In all 821 Computers installed at NCL, the bilingual facility is

    available.

    13.4 Keeping with tradition, 'Rajbhasa Pakhwara' was organised during

    September, 2010. On this occasion various competitions were held and

    prizes were distributed to the winners. During Rajbhasa Pakhwara, All India

    Hindi Kavi Sammelan was organized, in which motivational poetries wereread so as to promote and sustain growth of Rajbhasa. During closing

    ceremony a prominent Sahityakar of Urjanchal Dr. Syamakant Dwivedi

    Anand was honoured.

    13.5 As per the instructions of the Ministry, libraries of Company were

    enriched with the books related to the biography of freedom fighters, great

    personalities, brave Martyr etc. The 50% of amount targetted for purchase of

    books, was spent on purchasing of Hindi books.

    13.6 During Akhil Bhartiya Rajbhasa Sangosthi organized from 27-29

    October, 2010 at Jabalpur by Bhartiya Rajbhasa Vikas Sansthan, Dehradun,

    Shri V.K. Singh, CMD, NCL was honored with Rajbhasa Shree Award, Ms.

    Shantilata Sahu, D(P), Shri Niranjan Das,D(T/P&P), Shri O.P. Mishra, D(T/O)

    and Sri S.K. Rawat, D(F) were honoured with Rajabhasa Kirti Award. During

    Rajbhasa Sammelan organized from 25-27 November, 2010 at Goa by

    Bhartiya Rajbhasa Parishad, New Delhi, Ms. Shantilata Sahu, D(P), NCL washonored.

    13.7 The representative magazine of Coal India Khanan Bharti is regularly

    distributed among the readers.

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    14.0 Activities of Vigilance Department14.1 Vigilance Set-up:14.1.1 The Vigilance Division of Northern Coalfields Limited is headed by a

    Chief Vigilance Officer, a Director level officer appointed by the Governmentof India. Six executives belonging to different disciplines assist the CVO in

    carrying out the activities of the Vigilance Department. The Vigilance

    activities comprise mainly of (a) Preventive Vigilance (b) Punitive Vigilance

    (c) Raising Awareness about need to be vigilant by the rank and file of the

    organization.

    14.1.2 Corruption prone areas have been the focus of our attention. Any

    Preventive or Punitive action in these areas is bound to have a demonstrative

    as well as multiplier effect on the entire organization.

    14.2 Observance of Vigilance Awareness Period 2010 :14.2.1 As per the directives of the CVC, Vigilance Awareness Period was

    observed in NCL from 25.10.10 to 1.11.10.

    14.2.2 Sri V.K.Singh, CMD, NCL, administered pledgeto the executives andstaff at NCL, Singrauli on 25.10.10 signaling the beginning of the observation

    of Vigilance Awareness period 2010. Ms. Shantilata Sahu, Director (P), NCLread out the message of her excellency President of India Smt. Pratibha Devi

    Singh Patil on the occasion. The message of Honble Vice-President of India

    Sri Hamid Ansari was read out by Sri O.P.Mishra, Director (T/O), NCL. The

    message of Sri Manmohan Singh Prime Minister of India was conveyed to the

    assembled employees by Sri S.K. Rawat, Director(F) NCL. Sri B.Pradhan, CVO,

    NCL conveyed the message of CVC to the assembled employees. In a similar

    fashion the observation of Vigilance Awareness period 2010 was commenced

    with the administration of pledge and reading out of messages at different

    Projects of NCL.14.2.3 The Vigilance Awareness Period was utilized to involve employees

    from the top of the hierarchy to the grass root level of the organization. In

    order to make the campaign of the fight against corruption visible to all

    sections of society, discussions were also held with the members of Unions,

    Officers Association and the local village Sarpanchs. Pamphlets were

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    distributed to them for spreading the message about the need to fight

    corruption. All of them were found to be very enthusiastic in the meeting and

    they assured their co-operation in this respect. Like last year, this year also

    NCL has spread the message about the need to fight corruption.

    14.2.4 The children were asked to draw and paint their feelings on the

    topic: Corruption has made our life difficult. Through their colour and

    brushes the children have very emphatically revealed their anger against the

    corruption. Children were also asked to express their thoughts on the topic

    Ways and Means to fight Corruption. A declamation competition was also

    held on the topic: No legacy is so rich as honesty. Their paintings and

    essays give us the hope that the future of this country is safe in their hands.

    14.2.5 A talk on Integrity Pact by Sri K.K.Ojha, Ex CGM(MM) organizedduring the Vigilance Awareness Period was not only informative but also

    benefited the attending employees.

    14.2.6 A consumer