1

NORTHERN COALFIELDS LIMITED

(a Subsidiary of Coal India Limited) CONTENTS Page Nos. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Board of Directors Bankers & Auditors Notice Directors' Report Certificate of Compliance of Corporate Governance Guidelines Balance Sheet as at 31st March, 2011 Profit & Loss Account for the year ended Cash flow statement for the year ended 31st March, 2011 31st March, 2011 2 4 5 6 74 75 76 77 78

Annual Financial results under (under clause 41 of SEBI)

Balance Sheet Abstract and Company's General Business Profile 80 Schedules (A to O) to Balance Sheet Schedules (1 to 18) to Profit & Loss Account a) b) Accounting Policy (Schedule - 19) Notes on Accounts (Schedule - 20) 81 95 109 116

14.

Addendum to the Directors' Report a) b) Auditor's Report and Management's Replies Comments of the Comptroller and Auditor General of India under section 619 (4) of the Companies Act, 1956. ****** 126 137

NORTHERN COALFIELDS LIMITED

(A subsidiary of Coal India Limited)

Board of Directors
(As on 17.5.2011)

Chairman-cum-Managing Director
Shri Vinay Kumar Singh

Functional Directors
Ms. Shantilata Sahu Shri N. Das Shri O. P. Mishra Shri S. K. Rawat Personnel Technical Technical Finance

Part-time Official Directors

Shri Kailash Pati Economic Advisor, Ministry of Coal, New Delhi.

Part-time Non Official Directors

Dr. B. B. Goel Dr. Sheela Bhide Shri S. R. Upadhyay Shri S. Krishnan Dr. Atul Agarwal Director Director Director Director Director

Permanent Invitees
Shri R. S. Pandey Chief Operations Manager, East Central Railways, Hazipur (Bihar). Addl. Chief Secretary (Forest) Government of Madhya Pradesh Bhopal.

Shri M. K. Roy

Company Secretary
Shri D. H. Lalwani

NORTHERN COALFIELDS LIMITED

(A subsidiary of Coal India Limited) (During the year 2010-11)

Board of Directors

Chairman-cum-Managing Director
Shri Vinay Kumar Singh

Functional Directors
Ms. Shantilata Sahu Shri N. Das Shri O. P. Mishra Shri S. K. Rawat Personnel Technical Technical Finance

Part-time Official Directors

Shri Kailash Pati Dr. A. K. Sarkar Economic Advisor, Ministry of Coal, New Delhi. Director (Marketing), Coal India Ltd., Kolkata.

Part-time Non-Official Directors

Dr. B. B. Goel Shri J. N. L. Srivastava Shri V. K. Bhalla Shri P. Parvathisem Shri B. N. Pan Dr. Sheela Bhide Shri S. R. Upadhyay Shri S. Krishnan Dr. Atul Agarwal Director Director Director Director Director Director Director Director Director (w.e.f. 27.4.2010) (upto 22.8.2010) (upto 22.8.2010) (upto 22.8.2010) (upto 27.8.2010) (w.e.f. 27.9.2010) (w.e.f. 18.2.2011) (w.e.f. 18.2.2011) (w.e.f. 18.2.2011)

Permanent Invitees
Shri Chandan Roy Shri R. S. Pandey Shri M. K. Roy (IAS) Director (Operations), NTPC Ltd.,New Delhi (upto 31.7.2010) Chief Operations Manager, East Central Railways, Hazipur, Bihar Addl. Chief Secretary, Forest Department, Govt. of MP.

Company Secretary
Shri D. H. Lalwani

NORTHERN COALFIELDS LIMITED

(a Subsidiary of Coal India Limited)

Bankers & Auditors

Bankers
State Bank of India Allahabad Bank Union Bank of India Punjab National Bank

Statutory Auditors
M/s. P. L. Tandon & Co., Chartered Accountants, Kanpur (U.P.)

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

Registered Office
P.O.Singrauli Colliery, Distt. Singrauli (M.P.) - 486 889.

5
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. NOTICE TWENTY SIXTH ANNUAL GENERAL MEETING Notice is hereby given that the Twenty Sixth Annual General Meeting of the Members of Northern Coalfields Limited will be held at 11.30 A.M. on Saturday, the 21st May, 2011 at the Registered Office of the Company at Singrauli Colliery, Distt. Singrauli (M.P.) 486889 to transact the following business: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 Statutory Auditors & Comptroller and Auditor General of India thereon. 2. 3. To declare Dividend. To appoint a Director in place of Shri Kailash Pati, who retires in terms of Article 33(e)(iii) of the Articles of Association of the Company and is eligible for re-appointment. By Order of the Board of Directors Sd/Company Secretary Registered Office : P.O.Singrauli Colliery, Distt. Singrauli (M.P.) - 486 889.
Note: 1. A member entitled to attend and vote at the meeting is also entitled to appoint a proxy or proxies to attend and vote instead of himself/herself and proxy 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.

NORTHERN COALFIELDS LIMITED

(a subsidiary of Coal India Limited)

Directors' Report
To

The Members/Shareholders,

Northern Coalfields Limited, On behalf of the Board of Directors, I have great pleasure in presenting the 26th Annual Report of Northern Coalfields Limited (NCL) together with the Audited Accounts for the financial year ended 31st March, 2011. PERFORMANCE HIGHLIGHTS OF THE YEAR The 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. removal of 182.21 million cu.m. 177.98 million cu.m during the year 2009-10. Offtake at 64.208 million tonnes during the year 2010-11 registered a shortfall 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. The over burden was 2.37% more than OBR of

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 1.1 FINANCIAL REVIEW 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 Gross Margin Less: Less: Less: Less: Depreciation Interest & other financial charges Provision for Tax Transfer to CSR Reserve Transfer to General Reserve Dividend on Equity Share Capital Provision for Tax on Distributable Profit Surplus carried to Balance Sheet
Crores by adjusting surplus carried to Balance Sheet.

2010-11 2009-10 4329.97 4033.11 349.84 23.77 239.23 27.58 3980.13 3793.88 3956.36 3766.30 1510.91 1441.21 2445.45 2325.09 33.83 244.54 239.57 460.24 31.82* 232.51 233.63 432.07

Gross Profit Profit before Tax Profit after Tax

1467.27 1395.06

* Transfer to CSR Reserve for ` 29.47 Crores for 2009-10 regrouped for ` 31.82

1.2

Share Capital

1.2.1 The Authorized Share Capital of the Company as on 31st March, 2011 remained at ` 1,400.00 crores comprising of 40,00,000, 10% cumulative preference shares of ` 1000/- each and 1,00,00,000 equity shares of ` 1000/each. The paid-up share capital too as on 31st March, 2011 remained at ` 177.6728 crores comprising of 17,76,728 equity shares of ` 1000/- each. 1.3 Transfer to Reserve

1.3.1 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 1.4.1 Dividend In addition to the interim dividend already paid @ 225.13%

amounting to ` 400.00 crores, Directors are pleased to recommend a final dividend @ 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 Borrowings

1.5.1 The Company has not taken any loan from CIL, Government or any financial institution during the year.

9
1.6 Assistance under Coal Sector Rehabilitation Project (CSRP)

1.6.1 The Company had received a loan of USD 142.165 million from International Bank for Reconstruction and Development (IBRD) i.e. World Bank and Yen equivalent of USD 142.165 million from Japan Bank for International Co-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 31st March 2011 stood at ` 739.50 crores.

1.8

Capital Expenditure the year 2010-11, NCL has made a capital expenditure

1.8.1 During

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 Realisation

1.9.1 The 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) 2010-11 2009-10 8972.50 8415.61 9000.44 8372.61 % Realisation against Billing 100.31 99.49

10
1.10 Coal Sales Outstanding Dues 1.10.1 The position of coal sales dues outstanding as on 31.03.2011 as (` in Crores) Consumer UPRVUNL NTPC Others Total As on 31.03.2011 24.64 79.61 0.41 104.66 As on 31.03.2010 19.80 84.36 28.43 132.59

compared to same on 31.03.2010 is given hereunder:-

1.10.2 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.

11
1.11 1.11.1 Securitization of Coal Sales Dues. 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 1.12.1 Payment of Central /State Exchequer Information in regard to contribution made by the Company towards (` in crores) Particulars MP Royalty Tax Clean Energy Cess Excise Duty Sales Tax on works and scraps Entry Tax Service Tax Stowing Excise Duty SSDA Cess Property Tax Forest Cess Professional Tax Total 1.12.2 7.17 1.40 46.51 3.27 12.20 2.39 12.78 0.62 17.65 11.34 19.95 2.02 64.16 11.34 3.27 12.20 2.39 6.62 51.08 16.88 2.35 0.07 15.68 10.26 6.69 66.76 10.26 16.88 2.35 132.38 31.57 1.98 51.22 8.58 1.48 183.60 40.15 3.46 2.27 1.96 4.23 2010-11 UP Total MP 578.54 167.72 2009-10 UP Total 825.29 222.01 746.26 676.20 149.09 239.36 112.99 109.02

the Central and State Exchequer is furnished hereunder: -

Central & State Sales 108.16 131.20

925.57 402.59 1328.16 868.39 286.08 1154.47 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.

12
2.0 PRODUCTION PERFORMANCE

2.0.1 Production performance for the year 2010-11 against target and in comparison with previous year is given below: Production 2010-11 Target Actual 2009-10 Actual % achievement against target 92.02 89.18 % Growth over previous year -2.09 -3.69

Coal Production (Mt) Offtake (Mt) OB Removal (Mm3) - Departmental OB Removal (Mm3) -Outsourcing Total OB Removal (Mm3) Composite (Mm3)

72.00 72.00

66.253 64.208

67.67 66.669

127.00

100.04

102.82

78.77

-2.70

121.00 248.00 294.36

82.17 182.21 224.80

75.15 177.98 221.52

67.90 73.47 76.36

+9.34 +2.37 +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, HEMM and 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 and Dudhichua Expansion Projects. 2.0.5 Delay in supply and commissioning of 3 Nos. 20 Cum Shovels and 2

Nos. 10 Cum Shovels.

13

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

14

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. % of Achievement % Achievement of

Availability utilisation norms 2010-11

against

against norms 2010-11 (As on Dragline Shovel Dumper Dozer Drill 3.0.2 19 104 569 157 130 2009-10 (As on 19 103 570 157 130 92.46 80.61 90.81 97.10 100.66 91.71 75.61 86.97 98.75 96.27 2010-11 2009-10

2009-10

31/3/2011) 31/3/2010) 99.24 69.25 68.59 44.59 55.67 100.49 65.61 71.24 44.10 56.21

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 is marginally 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 157 31.3.2010 187

15
3.0.5 Number of equipments rehabilitated in the year 2010-11 compared to

2009-10 is given below: Equipment Shovel Dumper 1 32 Rehabilitation in 2010-11 2009-10 2 20

3.1

Capacity Utilisation

3.1.1 The capacity utilization during the year under report as compared to previous year is given below: Description Capacity in M.cum. Production in M.cum. Capacity Utilization (%) 2010-11 205.41 153.63 74.80 2009-10 202.31 158.39 78.29

3.2 3.2.1

Condition Monitoring Centre (CMC) At Northern Coalfields Limited production activities goes on round High capacity

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

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 As a part of maintenance management, Condition

working of these equipment necessitating reduction of breakdown hours to attain availability. Monitoring of different components specifically components subjected to continuous wear and tear, misalignment, maladjustment etc. are required.

16
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, of nonthe

deteriorating, equipment. (ii)

non-degrading

operating

conditions

Life extension of equipment: To reduce the rate of; machine deterioration and decay. This objective offers extended machine life.

(iii)

Failure prediction: To predict machine fault at an early stage, well before it goes under breakdown.

3.2.6

Activities carried out at and by CMC: (1) (2) (3) (4) Condition Monitoring of draglines Condition monitoring of rope shovels. Condition monitoring of high capacity diesel engine driven equipments. Used oil analysis and debris analysis of engines, transmission, wheel motors of electrically propelled dumpers, gear boxes etc.

3.2.7

Techniques employed at CMC 1. 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

17
4. 5. 6. 7. 8. 9. 10. 11. 3.2.8 1. 2. 3. 4. 5. 3.2.9 X-Y recording Insulation resistance measurement Bearing temperature Ventilation air temperature Commutation of DC machines Vibration monitoring Used Oil Analysis Spectroscopic Oil Analysis

Benefits to NCL by Condition Based Monitoring Availability of Draglines Reduction in Bearing consumption Conservation of engine oil Increase in average life of Diesel Engines Electronic Card Repairing 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 to 2009-10
Oil

in

brief of CMC in the year 2010-11 as compared

Year

Bearing Electronic Dragline on Repair

20CuM, Electric Rope Shovel Inspection

Magnotorq Need ue of P&H1900 Shovels Based Require ment

Analysis Inspecti Card

Inspection 12.5 CuM

2009-10 2010-11 3.3

5492 6062

156 125

44 141

25 27

3 2

37 4

10 37

Indigenisation of HEMM Spares

3.3.1 As a part of indigenization process, a trial order has been placed for indigenous Sleeve Pinion of P&H Electric Rope Shovel.

18
4.0 SALES AND MARKETING PERFORMANCE

4.0.1 The 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 72.000 Linkage/ ACQ/ e-auction 72.000 Actual 64.208 2009-10 % Ach. of % mat. of ( in Mill Target linkage/ACQ Tes) Actual 66.669 89.18 89.18 % Growth over previous year (-)3.69

4.0.2 Power 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:Consumer 2010-11 (in Mill Tes) Linkage/ACQ Actual 38.700 14.641 63.195 38.840 13.754 61.932 Mat. of linkage/ ACQ(%) 100.36 93.94 98.00 2009-10 Actual (in Mill Tes) 40.405 14.461 64.640 Growth over previous year (%) (-)3.87 (-)4.89 (-)4.19

NTPC UPRVUNL Total Power Sector

4.1

Supply of Deshaled coal from Bina Deshaling Plant

4.1.1 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 Scheme

4.2.1 Ministry 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.

19
4.2.2 Quantity lifted alongwith financial gain under the above scheme during 2010-11 are placed below:Scheme e-auction scheme Period April10 to March11 Quantity Booked 16.77 Lakh Tes Financial gain above notified price (approx) Rs. 205 Crores

4.3

Sector-wise and Mode-wise off-take sector-wise and Mode-wise off-take position during the year ( Fig in Mill Tes)

4.3.1 The

2010-11, in comparison to the last year is given in the following table:Sector/ Mode Sector-wise off-take Power Others Total Mode-wise off-take Rail (wagon of Indian Railways) MGR (wagon of power houses) Ropeway Road ( External) Road (Internal)* Total 0.903 4.045 3.655 64.208 1.532 3.181 3.930 66.669 35.320 38.537 20.285 19.489 61.932 2.276 64.208 64.640 2.029 66.669 2010-11 2009-10

*Raw coal transported by road to Bina Deshaling Plant has been considered as internal dispatch by road. 4.4 Wagon Loading

4.4.1 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 990 1016 2009-10 (Box/day) Actual 981 Target Achievement (%) 102.63 Variance from last year (%) (+)3.57

20

4.5 4.5.1

Coal Price Revision 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 price notification 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 consumers other than power utilities ( including IPPs), fertilizers and defence. 5.0 QUALITY CONTROL

5.0.1 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: Year 2010-11 Target (`/Tonne) 1105.00 1175.28 1096.41 Actual (`/Tonne) Year 2009-10 Actual (`/Tonne) Increase over previous year (`/Tonne) 78.87

5.1

Sampling Arrangement

5.1.1 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.

21

5.2

Sizing of Coal

5.2.1 The entire despatch of coal during the year 2010-11 was made after proper sizing as detailed below:Means of sizing of coal Through CHP Through Dozer/Manual Total 2010-11 ( in % ) 88.85 11.15 100 2009-10 ( in %) 90.70 9.30 100

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 5.3.1

Weighment of coal During 2010-11 also, 100% quantity of coal was despatched after

weighment.

5.4 5.4.1

Quality complaints and action taken thereon During 2010-11 approx., 55 nos. of complaints were received from The nature of complaints were primarily on account of

power houses.

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:Year Nature of Complaints (Fig. in nos.) Oversize & Extraneous Materials 2008-09 2009-10 2010-11 10 27 40 6 25 15 Poor quality Foreign Materials Nil Nil Nil 16 52 55 Total

22
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 it was 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 COAL

6.0.1 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. (i) (ii) crores) Inventory in terms of 3.26 3.73 months' consumption 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%. Description Value of Inventory (` in As on 31.3.2011 337.71 As on 31.3.2010 362.43

23
6.2 Disposal of Scraps finalized The cash sale of scrap of

6.2.1 As against a target of ` 10 Crores for sale of scraps and unserviceable items during the year 2010-11, NCL value ` 27.36 Crores ( inclusive of taxes). 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 7.0.1 SAFETY NCL is committed to highest standards of safety in its operations

keeping Zero Harm Potential as its objective. The accident statistics for the year 2010-11 as compared to previous year are furnished below : Sl.No. 1 2 3 4 5 6 7 8 9 10 11 12 Particulars No. of fatal accidents No. of fatalities No. of serious accidents No. of serious injuries Fatality rate per MT output Fatality rate per 3 lakh man shifts Fatality rate per 1000 persons employed Fatality rate per MM3 Output Serious injury rate per MT output Serious injury rate per 3 lakh manshifts Serious injury rate per 1000 persons employed Serious Injury rate per MM3 Output 2010-11 8+1* 8+1* 12+1** 12+1** 0.121 0.643 0.494 0.181 0.964 0.740 0.035 0.052 2009-10 7+1** 7+1** 10 10 0.103 0.551 0.428 0.148 0.787 0.611 0.032 0.045

* Mining Non-statistical accident ** Non Mining accident

Note:1. Figures for the calendar year 2010 and 2011 (upto March) are under reconciliation with DGMS. 2. Figures for the calendar year 2009 is reconciled by DGMS vide letter No.2009/1055/Jabalpur dt.17.3.2010.

24
7.1 7.1.1 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 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 Rules and Regulations implemented religiously and Safety Measures & Training Measures taken for improvement in SAFETY STANDARD in mines of

strenuous efforts have been made for achieving highest standards of

smooth and efficient execution of safety plan and distribution of all safety appliances regularly. 5. 6. Deployment of safety personnel wholly for accident prevention work. Provide appropriate forums with employees representatives for joint consultations on safety matters and to secure their motivation and commitment 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.

25
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 Bina deshaling 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 recommendations of Tripartite Committee, CIL Safety Board, Standing Committee on Safety, Parliamentary Committee and Safety Conferences etc.. 16. 17. 1st and 2nd Phase of Safety Audit for the year 2010-11 completed. 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.

26

20.

Surprise Back shift inspections by senior officials of Hqrs. and surprise inspection team.

21. 22.

All safety executives have been provided with CUG mobile phone. 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 Site Managers, Principal representative of the coal transporters, AGM(M) Manager of Mines at NCL HQ.
th

They have been explained the

concern recommendations of 10 National 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) & Engineer (E&M) and engaged in shut down procedure, (Excv), Colliery of electrical (Excv), Electrical Supervisor and person maintenance

appliances and overhead lines.

27

29. (i)

Monitoring of Dragline Dumps : Measurement of Corridors of Dragline OB dump (Dragline sitting level, and Coal Roof of Turra seam level) by HQ team. 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.

(ii)

(iii) (iv) (v) 30.

Six no. of Targetless total stations have been procured for all the 6 Draglines Projects of NCL and are in use. One no. of 3D Laser Scanner has been procured for Jayant Project and in use. Procurement action for Slope Stability Radar has been taken up.

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 Week

7.2.1 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 8.1

PROJECT PLANNING AND DEVELOPMENT. 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:-

28
S.N Name of the Project Capacity Sanctioned Sch. dt. of Actual date (Mty) Capital Completion of (Crs) Completion 4.50 10.00 4.00 2.50 5.00 3.00 1.00 0.60 1.50 4.20 4.00 10.00 10.00 0.50 168.64 375.04 527.11 137.80 289.68 63.11 7.70 19.18 19.26 648.04 588.75 1281.39 # 1846.49 # 48.79 41.26 42.98 48.28 68.72 18.87 19.91 5.04 9.28 3/87 3/91 3/93 3/91 3/93 3/87 3/76 3/90 3/89 3/95 3/94 3/04 3/04 3/04 3/96 3/96 3/01 03/02 3/89 4/97 4/96 4/99 3/88 3/90 3/93 3/93 3/93 3/87 3/76 3/90 3/89 3/95 3/97 3/04 3/04 3/06 3/96 3/96 3/00 3/02 3/89 8/02

MINING 1 Bina 2 Jayant 3 Amlohri 4 Kakri 5 Dudhichua Phase-I (Merged with Dch Expn. 10Mty) 6 Jhingurda 7 Gorbi (Closed) 8 Gorbi-B (Closed) 9 Gorbi Expn.(Merged with Gorbi) - Closed 10 Nigahi Phase-I (Merged with Nigahi Phase-II 10Mty) 11 Khadia 12 Dudhichua Expn. OC (RCE) 13 Nigahi Expansion,OC 14 Kakri Coal Aug. Scheme,OC OBR AUGMENTATION SCHEMES 1 Jayant OBR Scheme 2 Jhingurda OBR Scheme 3 Bina OBR Scheme

NON-MINING 1 Central Workshop 2 Integrated Water Supply Scheme 3 Nehru Shatabdi Chikitsalaya 4 Communication Scheme 5 Water Supply Scheme Phase-I&II 6 Bina Deshaling Plant 7 132 KV SS Madhauli(RCE) # Including the sanctioned capital of Dudhichua Phase-I (5.00 mty).

3/96 06/98 &04/99 16.69 8/97 08/97 5.43 03/01 03/01 Nigahi Phase-I (4.2 Mty ) and

29
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 Sanction ity (Mty) MINING 1 Krishnashila OCP 2 3 4 5 Amlohri OCP Block-B OCP Bina Extn. Nigahi Expansion ( Incremental-5Mty) * RPR has been approved by NCL Board and is presently under consideration of CIL Board. 4.00 6.00 3.50 6.00 5.00 437.34 168.97 259.40 3/2015* 3/2014 3/2012 3/2015 3/2014 3/2012 741.56 3/2013* 3/2016 3/2013 3/2016 4.00+ 1143.54 Capital (Crs) Sch. dt. of on Ant. dt. of on

Completi Completi

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)

30

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 Project Khadia 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 158th meeting 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-11015/255/2006IA.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 Forest

Conservation) Act,1980 communicated by Secretary (Forest), Madhya Pradesh vide letter dt. 13.10.10. XI Plan Project: 1. a. Dudhichua Expansion OCP (10.0 to 15.0 mtpa): 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. c. EMP & Forestry clearances for expansion project are to be obtained before final approval of the Project. 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.

31

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 30th Sept2011.

2. a.

Jayant Expansion OCP(10.0 to 15.0 mtpa): 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. c. EMP & Forestry clearances for expansion project are to be obtained before final approval of the Project. 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 30th Sept2011.

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.

32

8.4

Exploration & Drilling:

The drilling for geological exploration is done through CMPDI, RI-VI. ( in Meters) 2009-10 Actual CMPDI MECL 14993 17378 Target 16000 53000 2010-11 Actual 17954 13086 2011-12 Target 16100 53000

8.5

Status of Excavation of Overburden by Hiring of Equipment Awarded Quantity (MBCM) 27.66 Scheduled date of completion 10.07.2012

Name of the Project Jayant OC

Date of Commencement 11.07.2009

Contract Awarded to M/s Madhucon Projects Ltd. M/s B. Girijapathi Reddy & Co. M/s Monte Carlo

Amlohri OC

97.80

01.03.2011

29.02.2016

Bina Extension

45.369

17.01.2011

16.01.2014

Construction Ltd. M/s National

Block-B

64.43

01.06.2010

31.05.2015

Construction Co. M/s JP-ASDDHOLU(JV) M/s Rungta Projects Ltd. M/s Sadbhav Engg. Ltd. M/s Sushee HiTech Constns. Pvt. Ltd. M/s Saumya Mining Ltd.

Dudhichua Kakri Khadia

49.00 29.24 26.67

03.12.2010 28.02.2010 16.03.2010

02.03.2014 27.02.2013 15.03.2013

Krishnashila

28.19

05.05.2010

04.05.2013

Nigahi

54.00

20.02.2011

19.02.2014

33

9.0 9.1 9.1.1

ENVIRONMENTAL PROTECTION Management of NCLs Economic, Environmental, and Social Concerns: Integrated Management Manual have been approved, authorized and system of Northern Coalfields Limited complying with

released by CMD, NCL from 01.07.2009 which defines the company-wide management 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 24th March 2000 and 29th July 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 POLICY

9.2.1 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. 2. 3. 4. 5. 6. 7. 8. 9. Assured quality of coal supplies. Optimum utilization of available resources. Continual improvement in the management and performance of system. Ensuring prevention of pollution, injury and ill health due to work activities. Comply with all applicable legislations and other subscribed obligations. Respect all ILO and other international charters on social and labour issues. Promoting importance of the concept of sustainable development. Ensure that this policy is effectively implemented, maintained, and communicated. Review this policy regularly to ensure its continual improvement and relevance.

34
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 Measures

a. 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.

35

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 Vikas Nigam and in the projects situated in UP through the Renukoot Forest Division, Forest Department, Govt. of UP. 9.4 Pollution Control Measures

(I)
(i)

Air Pollution Control Measures

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) (iii) (iv) (v) (vi) (vii)

Dust cyclones are provided at the bottom of receiving pit of the crusher house. Fully enclosed Coal Handling Plants are provided to reduce coal dust emission outside CHP. Drills are provided with dust extractors Approach roads to mines and service roads are provided with black topping to reduce dust generation. Road side water sprinklers of fixed and mobile types are deployed for dust suppression on haul roads. 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) (ix)

Non-active Over Burden (OB) dumps are provided with vegetative cover to prevent dust emission under OB Dump reclamation plans. Dust proof cabins have been provided for operators in Heavy Earth Moving Machines. Dust masks have been provided to employees exposed to dust.

(x) (xi) (xii)

Fire hydrants system has been installed for CHPs and coal dumps. Moist coal is loaded to Merry Go Round (MGR) through Rapid Loading System. Routine maintenance and periodic overhauling of HEMMs are done to reduce gaseous emission.

36
(II) Water pollution control measures
Water 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.

37
(iv) Oil recovery

Floating 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 Wastes

Hazardous 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) (ii) (iii) (iv) Blasting operations are carried out between 12:00 to 14:00 hours only i.e. during change of shifts. Ear-muffs and ear-plugs are provided to employees wherever required. Curtain plantations have been provided in and around colonies and along mine boundaries. 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.

38
10.0 (A) ISO ACCREDITATION 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. has recommended 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 Company wide 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 14th 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.

39

11.0 HUMAN RESOURCE DEVELOPMENT & INDUSTRIAL RELATIONS 11.1 Manpower 11.1.1 Manpower strength of the Company (excluding apprentices under the Apprentices Act, 1961) as on 31st March, 2011 was 16209 against 16373 as on 31st March, 2010. The break-up of manpower strength is given below : (Fig. in Nos.) Sl.No. 1 2 3 4 5 Particulars Executives Supervisors Clerical Staff Highly skilled/skilled Semi skilled/unskilled Total as on 31.3.2011 1710 1608 1166 8290 3435 16209 as on 31.3.2010 1294 1902 1196 8357 3624 16373

11.2 Human Resource Development 11.2.1 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 basic trade training. To organise training programmes, seminars, workshops for all levels of executives of the Company to address the contemporary issues.

40

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 technology upgradation. 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.

41

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. i) ii) Number of Particulars persons trained through Vocational Training Programmes at VTC. Number of persons trained at CETI: (a) Regular training programmes (b) Workshops & Seminars TOTAL iii) programmes in India. a) General / Advanced Management courses b) Techno-managerial courses TOTAL iv) Number of persons trained abroad: a) General / Advanced Management courses b) Techno-managerial courses TOTAL 7 3 7 3 90 482 62 300 392 238 1785 1845 3630 1681 1216 2897 2010-11 12904 2009-10 11205

Number of persons trained through outside company

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

The 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) Promotion

A total of 326 candidates belonging to SC community and 142 candidates belonging to ST community were promoted during 2010-11.

42
The representation of SC and ST candidates in total manpower are as under:As on 31.3.2011 31.3.2010 Total Manpower 16209 16373 SC Candidates Number 2395 2469 in % 14.77 15.07 ST Candidates Number 1051 1057 in % 6.48 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 31st March 2011 is 4004 which represents 24.70% of total manpower of 16209.

11.5 Workers' Participation in Management 11.5.1 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 Relations 11.6.1 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 :

43
Sl.No. 1. Particulars No. of Strikes a) Complete b) Partial 2. Law & Order disturbances a) Relay Hunger strike b) Dharna/Demonstration c) Assault d) Rowdism e) Gherao f) Obstruction g) 3. 4. Non activities Mandays Lost Loss of Production Coal (Tonne) O.B. (Cu.M.) 27167 6971.10 0 0 5888 0 Co-operation NIL 24 NIL NIL NIL 3 NIL NIL 23 NIL NIL 1 5 NIL NIL 3 NIL NIL 2010-11 2009-10

12.0 Employees Welfare and Social Amenities. 12.0.1 In NCL proper attention is given towards employees welfare and

efforts are made for improvement in welfare and social amenities, like housing, water supply, medical, educational, recreational facilities etc. 12.1 Housing & Township 12.1.1 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 Supply 12.2.1 The total population of 93240 has been covered under the water

supply arrangement upto 31st March, 2011. In regard to availability of water, there is 100% satisfaction to the employees in the company.

44
12.3 Educational Facilities 12.3.1 The Company had established 7 DAV Public Schools, 2 Central Other Schools

Schools and 1 Delhi Public School. Besides, one feeder self-financing DAV Public School is also running in Central Workshop, Jayant. running 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 Services 12.4.1 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 (i) (ii) (iii) NCL is having three hospitals with a total bed strength of 200 as Nehru Shatabdi Chikitsalya (NSC) Bina Hospital 150 beds 35 beds 15 beds

indicated below:Central Hospital and Diabetic Care Centre -

12.4.3 Nehru 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.

45

12.4.4 Central Diabetic Clinics Considering 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 Dispensaries Besides 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. etc. Besides our Doctors and para medical staff are also highly benefited from the Workshops, Seminar 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.

46
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 Sports Adequate 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 facilities In 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 contribution 12.6.1 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 31st March, 2011 reached 2003 and 957 respectively. Total number of families rehabilitated is 2960, out of which 2580 families were shifted till 2010-11.

47
12.7 Mahila Mandal 12.7.1 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 Mahila Mandal Centre are also being run with the help of 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 Welfare 12.8.1 During the year under review, 311 Operations were conducted successfully under the Family Welfare Programme of NCL covering entitled and 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 Hindi was 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.

48

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 proper implementation 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 were read 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 was honored.

13.7 The representative magazine of Coal India Khanan Bharti is regularly distributed among the readers.

49
14.0 Activities of Vigilance Department 14.1 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 Government of 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 pledge to the executives and

staff at NCL, Singrauli on 25.10.10 signaling the beginning of the observation of Vigilance Awareness period 2010. Ms. Shantilata Sahu, Director (P), NCL read 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

50
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 colour and

topic: Corruption has made our life difficult. Through their

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) organized was not only informative but also

during the Vigilance Awareness Period benefited the attending employees. 14.2.6 with NCL. A consumer conclave

was organized by the Sales Deptt. on

27.10.10 where various consumers exchanged their ideas and grievances

14.2.7 A workshop on Procurement Procedure and Common irregularity in handling of tender was conducted by Sri S.D.Narang EX-TE CVC, and Director(SE), DGS&D, NEW Delhi on 29.10.10. The workshop proved to be a big success going by the interaction and exchange of views that took place between faculty and participants. 14.2.8 A talk on Bid rigging and competition laws in India delivered by

Sri S.P.Deo, Addl. Director General, Competition Commission of India, had a tremendous impact on participants. 14.2.9 For Officers and Employees of NCL an essay and debate competition were organized on the topic Black money is the only root of corruption in politic,business and bureaucracy and The accomplice to the crime of corruption is our own indifference respectively. A slogan writing competition had also been organized. The participating employees made the competition a very lively one. The various activities carried out by NCL during the Vigilance Awareness Period were widely covered by the mass media.

51
14.2.10 The concluding day function of the Vigilance Awareness period was

held on 1.11.2010. Shri Om Prakash Mishra, Dir.(T/O), NCL was the Chief Guest of the function. The presence of Shri S.K. Rawat, Dir.(Fin), NCL and Shri B. Pradhan, CVO, made the occasion successful. The proceeding of the evening started with a welcome song rendered by the students of Kendriya Vidyalaya, Singrauli. A brief account of the activities that took place during the Vigilance Awareness Period-10 was spelt out to the guests. An exhibition of the drawing and painting made by the School Children on the topic Corruption has made our life difficult was held at the same venue. The creative outpouring of the Children on Canvas struck an instantaneous chord with the Chief Guest. VIPs; executives, staff and others The message conveyed through these paintings was crystal clear corruption has made our life difficult. In their address on the occasion, Dir.(T/O), Dir.(F) and Chief Vigilance Officer, NCL were unequivocal in being unrelenting in the fight against corruption and the need to differentiate between genuine mistakes made in the interest of production and deeds done with malafide intentions. The prize winners from the School as well as NCL Hqrs were felicitated. 14.2.11 The various activities carried out by NCL: during Vigilance Awareness Period and concluding day functions were widely covered by the mass media 14.3 (i) Systems Improvement undertaken: With a aim to leverage technology for ensuring maximum

transparency, the website of

NCL has been added with another

feature related to Complaints lodge by consumers and their redressal. With this the consumer can get the feedback on his representation through the website. The FAQ Section of NCL website also contains Grievance Registration and Bulletin Board(consumer suggestion). The Office Order no.NCL/sales/09 /1668 dt. 22.10.2009 has laid down the procedure to be adopted in respect of lodging of complaints. (ii) Director(T/P&P) NCL vide circular no. NCL/D(T/P&P) F-35/10 395 dt.06.04.10 issued specific guidelines/instructions in respect of maintenance /issue of and recording entries in measurement books. The preventive vigilance measures were an outcome of an investigation carried out by NCL/Vigilance.

52

(iii)

As a fallout of another investigations by the Vigilance Department of NCL, Director(T/P&P) NCL vide circular no. NCL/D(T/P&P)/F-66/ 10/390 dt. 05.04.10 issued a set of instructions regarding maintenance of log books in respect of hired vehicles and their development.

(iv)

Subsequent to an investigation undertaken by the Vigilance Department, as a preventive vigilance measure, Director (F) NCL has been directed by the CMD/NCL to streamline the system of clearing/passing of bills in respect of employees.

(v)

The complaint handling policy of NCL in terms of CVC guidelines, contained in their circular No. 15/07/09 dt. 1/7/2009, has been formulated and circulated to all concerned Vide this office letter no. NCL/Vig/Access of complaints/10/1080 dt. 13/20.08.2010.

14.4 Extent of IT usage and e-governance: 1. Vide notice no.NCL/SGR/sales/08/2334 regarding refunds through dt.06.03.09 RTGS/CBS the to extant linked

procedure

consumers/e-auction buyers was circulated. Despite being located in remote area, NCL has introduced e-payment in a big way. 2. NCL website has been linked to CVC website for ensuring easy access to CVC instructions relating to different matters 3. 4. A link called CVO's corner has been introduced in NCL website. E-publication of "VIGILANCE PERSPECTIVE", a compendium on

Vigilance matter has been done. 5. Case studies based on major vigilance cases have been compiled and uploaded in NCL websites as a part of Vigilance Perspective". 6. A summary of CVC instructions on tendering procedure has been compiled and uploaded in NCL Website as a part of "Vigilance Perspective". 7. System improvement circulars issued as a result of Vigilance activity has been compiled and uploaded in NCL website as a part of "Vigilance Perspective".

53

8.

NCL is in a remote place. Despite its remoteness e-payment has been introduced in NCL.

9.

The status of contractors/ suppliers bills pending for payment are uploaded and updated in NCL websites at periodic intervals.

10. CIL does not have any manual for repair of HEMMs. On account of vigilance activities, a committee was constituted and based on the committee's recommendations; a circular for emergency repair of HEMMs has been circulated. The circular will govern emergency repair of HEMMs till such time CIL formulates a manual for the same. 11. The NCL website has been uploaded with information related to Sales and Marketing and Quality Control. The website is a mine of information which is very helpful to the customers. The website has the product details as well as the details of coal supply as on date. It contains statistics of the following: Project wise Production Project wise Dispatch Project wise Stock Consumer wise Dispatch Mode wise Dispatch Dispatch/Off-take Wagon Loading Details of Spot e-Auction List of existing valid linked consumers Entitlement vis-a-vis Dispatch (Erst while linked consumers) Net Coal Sale Balance Pricing of NCL coal Base Price as per notification NCL's prices including levies.

The following information has been uploaded for customers; New Coal distribution Policy from Ministry of Coal, Govt. of India Status of verification of linked Consumers Grievance Redressal system Cell ( GRSC) Spot e-Auction

54
Scheme Terms & Conditions Forward e-Auction Scheme & Terms & Conditions Letter of Assurance ( LOA) Scheme on Issuance of LOAs under NCDM for non-SLC(LT) category of consumers with lapsed linkages having BIFR referred status. Draft models of ( LOA) Draft letter of Assurance ( LOA) for state owned power utilities Draft leter of Assurance ( LOA) for Cement Plants Draft letter of Assurance ( LOA) for captive Power Plant ( CPPs) Draft letter of Assurance ( LOA) for IPP & Pvt. Generation Company. Draft letter of Assurance (LOA) For sponge Iron Plants. Model FSA Details of LOA as on 5.6.09

The website also contains the following notices; Notices for the customers List of Suspended Units Collection of Coal Sale value through RTGS/Core Banking system Regarding issuing of LOAs Notice for scheme on issuance of LOAs under NCDP for non SLC (LT) category of consumers with lapsed linkages having BIFR referred status. 12. Notice for new consumers regarding ceiling on commitment guarantee ( CG) for issuance of LOA. Regarding execution of FSA Notice for linked consumers who have executed FSA Notice dated 18.3.09 for linked consumers who have executed FSA Regarding spot e-auction With the aim to increase transparency in NCL, Policy on Publicity/ Advertisement of NCL has been formed. The same has been displayed on the NCL website. 13. Another portal in the Sales and Marketing link has been added for the benefit of customers who are related to lodging of complaints and their redressal.

55

14.5 Agreed List & ODI List prepared.

: As required Agreed list and ODI list have been

14.6 Rotation of executives from sensitive posts : A total number of seventy one (71) executives holding sensitive posts have been moved during the period from 1.4.2010 to 31.03.2011. 14.7 Surveillance and Detection (i) :

No. of cases added for investigation during the period of report No. of cases added during the period for investigation Disposed during the period : : : : 89 81 21 05

(ii)

No. of cases under departmental inquiry during the period of report No. of case under Departmental Inquiry Disposed during the period

(iii) Inspections:

A total no. of 22 surprise inspections / regular inspections were made during the period in question.

14.8 Punitive Vigilance: Chargesheets issued Minor Major Penal Penalt ty y Proce Procee eding dings( s(und under er Rule Rule 29) 31) 3 15 Penalty imposed Dismi Redu Redu Postp ssal/ ction ction onem Rem to to ent/ oval lower lower withh rank stage oldin in g of pay incre ment nil 1 20 2 With holdi ng of prom otion Cen Others(ca sur ution, e Warning etc.) No Action( exoner ation)

nil

15

No. of officials suspended:

4 (Three executives and one non-executive have been suspended)

56

CBI Cases : (a) (b) No CBI case is pending sanction for prosecution for more than three months. No reference received from CBI for concurrence of the Department/ Government u/s 6A of the DSPE Act, for registration of RC/PE is pending. 14.9 Details of CTE type inspection conducted by the CVO-case study and experience : Nature of Irregularity Irregularities related monsoon works Outcome

S.no 1.

2. 3.

4. 5.

to Major penalty proceedings have been initiated against 3 executives. Minor penalty orders have been issued against 10 executives. Disciplinary proceedings against one Engineering Assistant has been initiated. Irregularities in award of Major penalty proceedings against 12 ETP work executives and one non-nonexecutive have been initiated. Irregularities in tendering Major penalty proceedings have been of repair works related to initiated against 3 executives. Minor HEMM. penalty order against one executive has been issued. Engagement of Dog Squad. Major penalty proceeding has been initiated against one executive. Parking of surplus funds. Major penalty charge/ memorandum has been issued to one executive. The advice of CVC against other executives have been received.

14.10 Details of Vigilance Training: (i) A programme on "Vigilance Awareness" was held on 10.4.2010 for executives of NCL at Central Ecavation Training Institute. 26 executives attended the programme. CVO/NCL addressed the Audience and provided them vital inputs related to Vigilance and its importance. (ii) A talk on Integrity Pact by Sri K.K.Ojha, Ex CGM(MM) was organized which was attended by 110 executives on 26.10 10.

57

(iii)

A workshop on Procurement Procedure and Common irregularity in handling of tender was conducted by Sri S.D.Narang EX-TE CVC, and Director(SE), DGS&D, NEW Delhi on 29.10.10. The workshop proved to be a big success going by the inter-action and exchange of views that took place between faculty and participants.

(iv)

A talk on Bid rigging and competition laws in India delivered by Sri S.P.Deo, Addl. Director General, Competition Commission of India, on 30.10.10, had a tremendous impact on participants.

(v)

One day workshop on e-tendering was organized on 22.2.11 in which 38 executives of NCL and 32 vendors participated.

(vi)

A 3-days workshop on Case studies on common irregularities found in handling the tenders was organized by NCL, Vigilance Deptt. from 16.12.10 to 18.12.10. In which 250 executives of NCL were participated. The CVO, NCL, CCL, and representative of CVO, ECL and MCL were delivered their speeches and shared their experiences with participants.

(vii)

03 Vigilance functionaries attended a training held in New Delhi on Vigilance for Organization Excellence organized by Vigilance Study Circular, Hyderabad from 2.3.2010 to 5.3.2010.

(viii)

01 Vigilance functionary attended a training held in Kolkalta organized by Vigilance Deptt. Allahabad Bank on 26.06.10.

(ix)

01 Vigilance functionary attended a training held in New Delhi on Preventive Vigilance, investigation, departmental inquiry and law on termination organized by IMA from 20.09 10 to 22.09.10.

(x)

02 Vigilance functionaries attended a training held in Kolkata on Preventive Security Vigilance Security and Vigilance organized by West Bengal Productive council, Kolkata from 12.01.11 to 13.01.11.

(xi)

01 Vigilance functionary attended a training held in New Delhi on Procurement, Practices, Inventory control, Supply chain management and Source development organized by Industrial Management Academy, New Delhi from 03.03.11 to 05.03.11.

58

15.0 COMPUTERISATION 15.1 In NCL, a steady progress has been achieved in the field of computerization. The functional areas of Payroll, Cash Accounting, Personnel Information System and Mine Planning and Surveying have been computerized. Materials Management, Maintenance Management,

Production. Sales and MIS Modules of Integrated Business Solution (IBS), an ERP package, have been implemented in NCL Hqrs and all projects. Operator Independent Truck Despatch System (OITDS) is functional at Jayant Project. 15.2 F.O. based LAN is functional at Hqrs and all projects. All the LANs of projects are connected with LAN at HQ through F.O. cable. 15.3 Operator Independent Truck Dispatch System (OITDS) is being implemented at Amlohri, Nigahi, Dudichua and Khadia Projects.

15.4 Future Programme 15.4.1 Up-gradation of F.O. based LAN at HQ to Gigabit LAN. 15.4.2 Safety and Environment Management System is to be implemented.

16.0 COMMUNICATION FACILITIES 16.1 Efficient telecommunication network has been developed in the

projects and NCL HQ to provide the communication facilities right from the Corporate Office to the Pit Office. 16.2 OFC network has been established from NCL HQ to projects and within the Projects to provide voice and high speed data communication facility for IBS. 16.3 High speed Internet connectivity has been established at NCL HQ for email facility.

59
16.4 (i) The improvements made during the year 2010-11 are given below: New IP based telephone exchanges have been installed at

HQ/Projects/Units (Total 11 Nos). Facility for close user group numbering scheme has been established for voice communication between subscribers of HQ/Projects/Units without using Tie-line codes. This has improved telecommunication between HQ and projects/Units. (ii) 180 No. of wireless equipment have been added to improve the communication network in the mines. 16.4.1 680 number of mobile SIM cards of BSNL have been issued to the executives /emergency staff in HQ/Projects/Units to facilities closed user group (CUG) mobile communication. 17.0 CORPORATE SOCIAL RESPONSIBILITY 17.1 Following Corporate Social Responsibility activities have been

undertaken in NCL during the year 2010-11. i) Environmental Protection Measures including control of Air Pollution, Water Pollution, Noise Pollution, Soil erosion, Land reclamation (tree plantation) have been undertaken at a total cost of ` 824.32 lakhs during the year 2010-11. ii) C.S.R. Activities viz. installation of Hand Pumps, construction and repairing of Roads, construction of Check Dams, construction of Class Rooms, Playgrounds, Boundary Wall and distribution of Fruit bearing plants etc. have been undertaken for the villagers residing within a radius of 15 Kms. of NCL/HQ, Projects at a total cost of `425.33 lakhs during the year 2010-11. iii) As a part of C.S.R. measures for Medical Facilities, various Medical Camps viz. Family Planning, Diabetic Detection Camps, Hypertension Detection Camps, Plastic Surgery Camps, Urology Camps etc. have been organized during the year 2010-11.

60

iv)

Education facilities in the form of DAV Public Schools, Central Schools and Delhi Public School have been established by NCL, in which besides the wards of NCL employees, the wards of residents of the nearby areas are also provided schooling facilities.

18.0 STATUTORY INFORMATION 18.1 Information in regard to Energy Conservation, Technology Absorption and Foreign Exchange Earning & Outgo 18.1.1 Information in accordance with the provisions of section 217(1)(e)

of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 regarding Conservation of Energy, Technology Absorption and Foreign Exchange Earnings & Outgo are given in Annexure-I to this report. 18.2 Particulars of Employees 18.2.1 There was no employee of the Company who received remuneration

in excess of the limits prescribed under section 217 (2A) of the Companies Act,1956 read with Companies' (Particulars of Employees) Rules,1975 as amended. 19.0 AUDITORS REPORT 19.1 Replies of the Management on the observations made in the Report of

the Statutory Auditors and comments of the Comptroller and Auditor General of India (CAG), as required under section 217(3) of the Companies Act, 1956 are given in the Addendum forming part of this Report. 20.0 AUDITORS 20.1 Auditor The Statutory and Branch Auditors appointed by the Comptroller and General (CAG) of India for the year 2009-10 vide letter

No.CA.V/COY/CENTRAL GOVT. NCFL(3)/383 dated 12.8.2008 under section 619 (2) of the Companies Act, 1956 along with remuneration as fixed by the Board in exercise of powers conferred by the Company in 17th Annual General Meeting held on 23rd September, 2002, pursuant to provisions of section 224(8) of the Companies Act, 1956 is given hereunder:-

61
Statutory/ Branch Auditors M/s.P. L. Tandon & Co., Chartered Accountants, Kanpur(U.P.). M/s.Tasky Associates, Chartered Accountants, Bhopal(M.P.). M/s.Gupta Jeswani & Co., Chartered Accountants, Gwalior(M.P.). Audit Fee (`) 3,93,750.00 TA & Out of pocket expenses (`) At actual subject to the limit of `1,57,500.00 (50% of Earlier Years Audit Fees `3,15,000.00). At actual subject to the limit of `57,750.00 (50% of Earlier Years Audit Fees `1,15,500.00) -doReimbursement of Service Tax (`) At actuals.

1,44,375.00

-do-

1,44,375.00

-do-

21.0 CORPORATE GOVERNANCE 21.1 Board of Directors (i) (ii) Shri Vinay Kumar Singh continued to be Chairman-cum-Managing Director, NCL, during the year. Ms. Shantilata Sahu, Shri N. Das, Shri O. P. Mishra and Shri S. K. Rawat continued to be Director(Personnel), Director(Tech/P&P), Director (Tech/Oprns) and Director(Fin), respectively during the year. (iii) Shri Kailash Pati, Economic Advisor, Ministry of Coal and Dr. A.K. Sarkar, Director(Marketing), CIL, continued to be Part-time Directors of your Company during the year under report. (iv) Shri J. N. L. Srivastava, Shri V. K. Bhalla and Shri P. Parvathisem, nonofficial Part-time Directors of your Company retired w.e.f. 23.8.2010 and Shri B. N. Pan, non-official Part-time Director was retired w.e.f. 28.8.2010. (v) (vi) Shri Chandan Roy, Director (Oprns), NTPC Ltd, ceased to be Permanent Invitee, NCL Board w.e.f. 1st August, 2010. Shri R. S. Pandey, Chief Operations Manager, EC Railways and Shri M. K. Roy, Addl. Chief Secretary (Forest), Govt. of MP, continued to be Permanent Invitees on NCL Board during the year under report. (vii) Dr. B. B. Goel was appointed as Independent Director on NCL Board w.e.f. 27.4.2010.

62
(viii) Dr. Sheela Bhide was appointed as Independent Director on NCL Board w.e.f. 27.9.2010. (ix) Shri S. R. Upadhyay, Shri S. Krishnan and Dr. Atul Agarwal were appointed as Independent Directors on NCL Board w.e.f. 18.2.2011. (x) After the close of Financial Year 2010-11, Dr. A.K. Sarkar, Part-time Director, retired on 30.4.2011. 21.2 Board Meetings 21.2.1 During the year 11 (eleven) Meetings of the Board of Directors of NCL were held. 21.2.2 Meetings:Name Directors of 147 148 149 150 BOARD MEETING NO. AND DATE 154 151 152 153 30.10.10 & 31.10.10 FUNCTIONAL DIRECTORS Shri Vinay Kumar Singh, CMD Ms. lata D(P) Shanti Sahu, P P P P P P P P P P P P P P P P P P P P P P 155 6.12.10 17.4.10 5.5.10 19.6.10 29.6.10 26.7.10 21.8.10 4.10.10 156 22.1.11 157 23.2.11

Attendance of Directors and Permanent Invitees in Board

Shri N. Das, D(T/P&P) Shri O. Mishra, D(T/O) P.

P P

P P

P P

P P

P P

P P

P P

NP P

P P

P P

P P

Shri S. K. Rawat, D(F)

PART-TIME OFFICIAL DIRECTORS Shri Pati Kailash K. P P P NP P NP P NP P NP P NP P NP P NP P NP P NP P NP

Dr. A. Sarkar

63

PART-TIME NON OFFICIAL DIRECTORS/INDEPENDENT DIRECTORS Shri J. N. L Srivasvata Shri V. K. Bhalla Shri P. Parvathisem Shri B. N. Pan Dr. B. B. Goel P P P P Appt. on 27.4.10 P P P P P P P P P P P P NP P P P P P P P P NP P P P Ceased to be Director w.e.f. 28.8.2010 P NP NP NP P

Ceased

to w.e.f.

be Directors 23.8.2010

Dr. Sheela Bhide Shri S. Krishnan Shri S. R. Upadhyay Dr. Atul Agarwal. PERMANENT INVITEES Shri Chandan NP Roy P Shri R. S. Pandey Shri M. K. Roy NP

Appointed on 27.9.2010

P P

Appointed

on

18.2.2011

P NP

NP NP NP

NP NP NP

NP NP NP

NP P NP P NP P NP

Retired on 1.8.2010 P NP NP NP NP NP NP NP

Note: P Present, NP- Not Present

21.2.3 Attendance of Directors in Annual General Meeting. In the 25th Annual General Meeting of Members of NCL held on 14th May, 2010, CMD, Director (Personnel), Director (Technical/Operations) and Director (Finance) were present. 21.3 Audit Committee 21.3.1 In pursuance of the guidelines of Corporate Governance for Central Public Sector Enterprises received from Department of Public Enterprises issued vide office memorandum No.18(8)/2005-GM, dated 14th May, 2010. Board of Directors of NCL in its 156th meeting held on 22nd Jan 2011 re-constituted the Audit Committee of NCL as under:a) Dr. Sheela Bhide, Independent Director b) Dr. B. B. Goel, Independent Director Chairperson Member. Member.

c) Shri Kailash Pati, Government Nominee Director -

64
21.3.2 Invitees. 21.3.3 Role of Audit Committee : The role of the Audit Committee shall include the following : (a) Oversight of the companys financial reporting process and the disclosure of its financial information to ensure that the financial statement is correct, sufficient and credible. Recommending to the Board the fixation of audit fees. Approval of payment to statutory auditors for any other services rendered by the statutory auditors (d) Reviewing the management, the annual financial statements before submission to the Board for approval, with particular reference to: i) Matters required to be included in the Directors Responsibility Statement to be included in the Boards report in terms of clause (2AA) of section 217 of the Companies Act, 1956; for the same; iii) Major accounting, entries involving estimates based on the exercise of judgment by management; iv) Significant adjustments made in the financial statements arising out of audit findings; v) Compliance statements; vi) Disclosure of any related party transactions; and vii) Qualifications in the draft audit report. (e) Reviewing, with the management, the quarterly financial statements before submission to the Board for approval. (f) Reviewing with the management, performance of internal auditors and adequacy of the internal control systems. with legal requirements relating to financial The Board also directed that Director (Tech/P&P) and Director

(Finance) to attend and participate in the meetings of Audit Committee as

(b) (c)

ii) Changes, if any, in accounting policies and practices and reasons

65

(g)

Reviewing the adequacy of internal audit function, if any, including the structure of the internal audit department, staffing and seniority of the official heading the department, reporting structure, coverage and frequency of internal audit.

(h) (i)

Discussion with internal auditors and / or auditors any significant findings and follow up there on. Reviewing the findings of any internal investigations by the internal auditors / auditors / agencies into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matters to the Board.

(j)

Discussion with statutory auditors before the audit commences, about the nature and scope of audit as well as post-audit discussion to ascertain any area of concern.

(k)

To look into the reasons for substantial defaults in the payment to the depositors, debenture holders, shareholders (in case of non payment of declared dividends) and creditors

(l) (m)

To review the functioning of the Whistle Blower Mechanism. To review the follow up action on the audit observations of the C&AG audit.

(n)

To review the follow up action taken on the recommendations of Committee on Public Undertakings (COPU) of the Parliament.

(o) (p)

Provide an open avenue of communication between the independent auditor, internal auditor and the Board of Directors Review all related party transactions in the company. responsible for reviewing related party transactions. For this purpose, the Audit Committee may designate a member who shall be

(q)

Review with the independent auditor the co-ordination of audit efforts to assure completeness of coverage, reduction of redundant efforts, and the effective use of all audit resources.

(r)

Consider and review the following with the independent auditor and the management:

66

i)

The adequacy of internal controls including computerized information system controls and security, and

ii)

Related findings and recommendations of the independent auditor and internal auditor, together with the management responses.

(s)

Consider and review the following with the management, internal auditor and the independent auditor : i) Significant findings during the year, including the status of previous audit recommendations. ii) Any difficulties encountered during audit work including any restrictions on the scope of activities or access to required information,

(t)

Carrying out any other function as is mentioned in the terms of reference of the Audit Committee.

21.3.4

During the Financial Year 2010-11, 5 (five) Audit Committee

Meetings were held and the attendance of the Chairman/Chairperson and Members are as under:-

Name Shri Srivastava Shri V. K. Bhalla Shri O. P. Mishra Dr. Sheela Bhide Dr. B.B. Goel Shri Kailash Pati P P J.N.L. P

Audit Committee Meeting held on 16.4.10 4.5.10 P P P 19.6.10 P P P 25.7.10 P P P 22.2.11 P P P P P P

Note:

P Present

67

21.4 Training of Board Members 21.4.1 Shri N. Das, Director (Tech) (P&P), attended
th

Management to 26th June,

Development Programme on Leadership Clinic held from 24 2010 at Mumbai organized by IIM Kozhikode.

He also attended Advance

Management Programme organized by Administrative Staff College of India, Hyderabad in 2nd Quarter of 2010-11 , Phase-I Leading Strategic Changes from 23rd August to 3rd September 2010 at ASCI, Hyderabad. Phase-II Study tour at Europe from Sept 12 15, 2010. 21.5 Directors' Responsibility Statement 21.5.1 Pursuant to section 217 (2AA) of the Companies Act, 1956, it is

hereby confirmed: i) that in the preparation of the Annual Accounts for the Financial Year ended 31st March, 2011, the applicable Accounting Standards had been followed along with proper explanation relating to material departures; ii) that the Directors had selected such Accounting Policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the Financial Year and of the profit or loss of the Company for that period; iii) that the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; iv) that the Directors had prepared the Annual Accounts for the Financial Year ended 31st March, 2011, on a going concern basis.

68

22.0 AWARDS 22.1 Gold Trophy of the SCOPE Meritorious Award for Environmental Excellence & Sustainable Development for the year 2007-08 has been received on 10th April 2010 by Shri V. K. Singh, CMD, NCL from the Honble President of India at New Delhi.

22.2 National Geosciences Award 2009 to Sri V.K.Singh, CMD, NCL awarded on 4th February, 2011 by Hon able Vice President of India. 23.0 AVAILABILITY OF ANNUAL ACCOUNTS OF NCL AT HEADQUARTERS OF THE COMPANY.

23.1 The Annual Accounts of Northern Coalfields Limited for the year 201011 will be available at the Headquarters of NCL at Singrauli (MP) for providing information to the Shareholders of Coal India Limited on demand.

24.0 ACKNOWLEDGEMENT 24.1 The Board of Directors place on record their deep gratitude for the continued support and valuable guidance received from Ministry of Coal and Coal India Ltd. The Directors also acknowledge with thanks the co-operation and help extended by different wings of Govt. of India particularly Ministry of Environment & Forest and Ministry of Finance, as well as from Planning Commission, Director General of Mines Safety, Comptroller & Auditor General of India, Chairman and Members of Audit Board, Statutory Auditors, Registrar of Companies, State Governments of MP and UP and Local Administrative Authorities. 23.2 The Directors are also thankful to the valued customers particularly NTPC and UPRVUNL, Bankers, Contractors and Suppliers for the valuable assistance and help received from them.

69

70

ANNEXURE- I TO DIRECTOR'S REPORT

Information in accordance with the provisions of section 217(1)(e) of the Companies Act. 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules,1988 regarding Conservation of Energy, Technology Absorption and Foreign Exchange Earnings & Outgo. A) (a) I) i) CONSERVATION OF ENERGY
Steps taken for conservation of energy during the year 2010-11

Electrical Energy. NCL has earned a bonus of ` 2.92 crores both from MPSEB and UPPCL points of supply put together towards power factor and load factor rebate during year 2010-11 as against last years bonus of `6.81 crores. The following energy taken in 2010-11:1. conservation measures have been

ii)

Compact fluorescent lamps and other energy efficient lamps have been installed at Bina, Kakri, BlockB, Jayant, Amlohri, Nigahi , IWSS and Jhingurda Projects of NCL. Time switches have been used for street lights in CHP, Mines and residential areas at Jayant, Khadia, Kakri, Dudhichua, Bina and Nigahi Projects. Energy saver, energy meter and PF meters have been installed at Bina, Khadia and BlockB Projects. Additional capacitor bank has been installed at Block B, Nigahi, Jayant and Kakri Projects for improvement of Power factor.

2.

3. 4.

II) i) ii)

FUEL & LUBRICANTS Strict compliance of approved comprehensive guidelines for monitoring of diesel consumption in all projects of NCL. The actual diesel consumption of mines is being compared with the

71
benchmark data of CMPDIL on monthly basis for monitoring purpose. b. Additional Investment and Proposals, being implemented for reduction of consumption of energy. i) ii) iii) Use of Solar Photo Voltaic Street lighting at mines/units Use of energy efficient lamp (SVL) for street & flood lighting, 18W CFL Installation of energy meter, Demand controller, energy saver and P.F. Meter in mines and townships Time switch for streetlights in CHP, Mines and residential areas and others Installation of Capacitor Bank at Kakri Project Total: (c) `1.70 Lakhs `20.65 Lakhs `5.52 Lakhs

iv) v)

`9.53 Lakhs `11.85 Lakhs `49.25 Lakhs

Impact of measures taken at (a) and (b) for reduction of energy consumption and consequent impact on the cost of production of goods. Description 2010-11 2009-10 % increase/ decrease (+) 0.87 (+)2.07

SL No. A) (i) (ii)

Electrical Energy: Consumption of energy /Tonne of coal production (KWH/Tonne) Consumption of energy per cu.m. of composite production i.e. coal plus OB and Rehandling (KWH/Cu.m.composite) Fuel & Lubricant: 1.04 0.043 1.04 0.044 0.00 (-)2.27 5.82 2.46 5.77 2.41

B)

Consumption of HSD per Cu.m. of composite production excluding dragline production (Ltr/cu.m.) Consumption of Lubricant per Cu.m. of composite production (Ltr/cu.m.)

72

TECHNOLOGY ABSORPTION :

Form 'B' is enclosed

C (i)

FOREIGN EXCHANGE EARNING & OUTGO Activities relating to exports, initiatives taken to increase exports, development of new export markets for products and services and export plans. Company is not engaged in export activities. Total Foreign Exchange used and earned. (` in lakhs) Current Year (A) (B) i) a) b) c) ii) iii) iv) v) Foreign Exchange earned Foreign Exchange used C.I.F. Value of Imports Raw materials Components, Stores & Spare Parts Capital Goods Repayment of JBIC Loan Repayment of IBRD Loan Travelling Expenses Interest/Commitment/Agency charges etc. of IBRD/JBIC Total 21,648.18 21,712.19 NIL 9,314.51 1,654.33 5,700.10 3,792.80 30.47 1,155.97 NIL 10,468.96 368.72 5,180.29 3,815.71 16.21 1,862.30 NIL Previous Year NIL

(ii)

73

F O R M ' B'
Disclosure of Particulars with respect to Technology Absorption
RESEARCH & DEVELOPMENT (R&D)
1 Specific areas R&D carried Company. in which out by 1 High Angle Coal Conveying. 2. Utilization of Ants as bio-indicators to monitor Environmental pollution in spoils of Coal mines (CIL R&D Project for Tyre Retreading Compound carried on tyres at Dudhichua OCP also) Awaited. (CIL R&D Board discussed field performance and decided that the Project should be continued with 85 T dumper tyres) Study to be conducted on 85 T Dumper tyres NIL

2.

Benefits derived as a result of the above R&D

3. 4.

Further Plan of Action: Expenditure on R&D: (a) Capital (b) Recurring (c) Total (d) Total R&D expenditure as percentage of total turnover.

TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION: 1.

Efforts in brief, made towards technology absorption, adaptation and innovation: Benefits derived as a result of the above efforts In case of imported technology (imported during the last 5 years reckoned from the beginning of the financial year) the requisite information given below:(a) Technology imported: (b) Year of Import: (c) Has technology been fully absorbed: (d) If not fully absorbed, areas where this has not taken place, reasons therefore and future plan and actions: : : i) 3d Laser Scanner has been procured for Dump Slope Monitoring at Jayant OCP. ii) OITDS is being installed at Nigahi, Dudhichua, Amlohri and Khadia OCPs. Awaited N I L

2 3

74