Business World | April 13, 2021
Coal India as a whole produced 602.14 MT of coal during 2019-20 accomplishing 91 per cent of the targeted production.
Notwithstanding the projections over renewables displacing coal, the fact of the matter is that coal will continue to be the dominant fuel driving India’s electricity generation for the next few decades and Coal India is the single largest coal producer in the world.
Coal India (CIL), the state-owned coal mining corporate, came into being in November 1975, producing a modest 79 million tonne (MT) at the time. CIL today is the single largest coal producer in the world and one of the largest corporate employers with a workforce of 2,72,445 (as on 1st April 2020). CIL functions through its subsidiaries in 84 mining areas spread over eight states. It has 352 mines (as on 1st April 2020) of which 158 are underground, 174 are opencast and 20 mixed mines. CIL further operates 12 coal washeries, (10 coking coal and 2 non-coking coal) and also manages other establishments like workshops, hospitals, and so on.
The PSU has 26 training institutes and 84 vocational training centres. The Indian Institute of Coal Management (IICM), a state-of-the-art management training ‘centre of excellence’ – the largest corporate training institute in India — operates under CIL and conducts multi-disciplinary programmes.
MAHARATNA MANDATE: CIL is a Maharatna company, a Government of India classification of the most important and the biggest state-owned enterprises with the mandate to expand their operations and emerge as global giants.
Despite the many challenges that emerged including the extended and heavy monsoon, inundation of Dipka mine, subdued demand for power, Covid-19 in the last fortnight of March 2020, CIL managed to come back strongly in the second half of fiscal 2019-20, making up most of the lost ground in the first half. Coal India as a whole produced 602.14 MT of coal during 2019-20 accomplishing 91 per cent of the targeted production.
Coal India achieved a net profit of Rs 16,700.34 crore and gross sales of Rs 1,34,979.13 crore. All subsidiaries of Coal India earned profit before tax during the year. Coal India and its subsidiaries paid/adjusted Rs 43,058.72 crore towards royalty, GST, cess, District Mineral Foundation (DMF) and National Mineral Exploration Trust (NMET) and other levies. CIL subsidiaries also distributed 15,42,982 masks and 63,256 litres of hand sanitiser to its employees and people living in and around its operational areas to fight Covid-19. In addition, they also procured N95 masks, ventilators, PPE suits, thermal scanners and oxygen cylinders to fight the Covid pandemic.
Coal India is one of the highest CSR spenders among the PSUs touching the lives of the countrymen. Its CSR activities largely encompass education, rural development, healthcare, women empowerment, skill development and sports. CIL and its subsidiaries spent a total of Rs 587.84 crore on CSR activities during 2019-20.
Based on the demand projection for the coal sector in the country in the coming years and subsequently, a roadmap has been prepared for the medium term wherein CIL envisages 1 billion tonne coal production by 2023-24. To achieve this target, CIL has identified major projects and assessed other related issues.
The capital expenditure for 2020-21 has been pegged at Rs 10,000 crore. CIL plans to invest substantial amount in diversification projects like solar power, revival of fertiliser plants, coal gasification and rail wagon procurement during 2020-21.
The company’s vision is to ensure that there is no shortage of coal in the country and achieve self-reliance in coal. Coal India envisions to be a commercially viable company and endeavours to move ahead as a contemporary, professional, consumer friendly and successful corporate entity committed to national developmental goals.