Public Sector Undertakings in Coal Sector
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SafetyChapter-10 in Coal Mines Public Sector Undertakings in Coal Sector 10.1 Historical Development of Coal Coal Limited was formed as a subsidiary India Limited and its Subsidiary company of the Steel Authority of India Companies Limited to manage the taken over mines. These mines were subsequently 10.1.1 The Coking Coal Mines (Emergency Provisions) Ordinance was promulgated nationalized w.e.f. 01.05.1972. Later on, by the Government of India on the management of 711 coal mines was 16.10.1971 under which except the also taken over by the Government with captive mines of TISCO and IISCO, the effect from 31.01.1973 and they were management of all coking coal mines nationalized w.e.f. 01.05.1973 and a new was taken over by the Government. A Government Company, namely, the Coal new company called the Bharat Coking Mines Authority Limited (CMAL) with Hon’ble Minister of Coal Shri Sriprakash Jaiswal, Secretary (Coal) and Chairman, CIL flanked by artists at the event of Coal India Limited Foundation Day 63 Annual Report 2010-11 headquarters in Kolkata, was set up by India Limited to manage the Talcher and the Government in May, 1973 to manage IB-Valley Coalfields in Orissa. the non-coking coal mines. CMAL was 10.1.4 Coal India Ltd. (CIL) has now 8 subsidiaries organized as a unitary structure on viz. Bharat Coking Coal Limited (BCCL), divisional pattern with four Divisions, the Central Coalfields Limited (CCL), Central Division, the Eastern Division, Eastern Coalfields Limited (ECL), the Western Division and the CMPDIL. Western Coalfields Limited (WCL), The mines of erstwhile National Coal South Eastern Coalfields Limited (SECL), Development Corporation were brought Northern Coalfields Limited (NCL), under the Central Division of CMAL. In Mahanadi Coalfields Limited (MCL) September, 1975, CIL was formed as a and Central Mine Planning and Design Holding Company with five subsidiaries, Institute Limited (CMPDIL). CMPDIL namely, Bharat Coking Coal Limited is an engineering, design and exploration (BCCL), Central Coalfields Limited company set up for preparing perspective (CCL), Eastern Coalfields Limited (ECL), plan(s), rendering consultancy services Western Coalfields Limited (WCL) and and undertaking exploration and drilling Central Mine Planning and Design work to establish coal reserves in the Institute Limited (CMPDIL). country and collection of detailed data for 10.1.2 In view of the projected increase in preparation of projects for actual mining. production and investment contemplated The other seven subsidiaries of CIL are for CCL and WCL group of coal coal producing companies. mines and in view of their extensive geographical spread resulting in day 10.1.5 CIL and its subsidiaries are incorporated to day administrative, technical and under the Companies Act, 1956 and communication problems etc. two more 90% of the shares are owned by the coal companies, namely, Northern Central Government and 10% have been Coalfields Limited and South Eastern disinvested through Initial Public Offer Coalfields Limited were formed w.e.f. (IPO) on 04.11.2010. The coal mines 28.11.1985. in Assam and its neighbouring area are controlled directly by CIL under the unit 10.1.3 Considering the prospects of Orissa North Eastern Coalfields. Coalfields, being the growth centre for the VIII and IX Plan periods, a new coal 10.2 Coal India Limited and its company was formed bifurcating the South Subsidiaries Eastern Coalfields Limited (SECL). The 10.2.1 Board of Directors new company, the Mahanadi Coalfields Limited was incorporated on 3rd April, CIL, the holding Company with 1992 with its headquarters at Sambalpur headquarters in Kolkata, is headed by a (Orissa) as fully owned subsidiary of Coal Chairman-cum-Managing Director in 64 Public Sector Undertakings in Coal Sector schedule ‘A’ scale of pay. He is assisted Director (Planning and Projects) and by four Functional Directors, namely, Director (Technical). CMPDIL has Director (Technical), Director (Personnel four functional Directors on its Board and Industrial Relations), Director of Directors designated as Director (Finance) and Director (Marketing), (Technical), Director (Coal Production who are all in Schedule ‘B’ scale of and Utilisation), Director (Planning pay. Each Subsidiary Company has its and Design) and Director (Research, own Board of Directors headed by a Development & Technology). In Chairman-cum-Managing Director in addition, there are several part-time Scheduled ‘B’ scale of pay. In additional, or nominee Directors on the Board of there are four functional Directors (in CIL and its subsidiary companies, who schedule ‘C’ scale of pay) in each of the are appointed in accordance with the six production companies of BCCL, ECL, Articles of Association of the Company CCL, NCL, MCL, SECL and WCL viz and Government guidelines prescribed Director (Personnel), Director (Finance), in this regard from time to time. Scope Special Jury Award Ceremony 65 Annual Report 2010-11 10.2.2 Authorised Share Capital (B) Authorised Share Capital of the foreign subsidiary company of CIL is as under : The authorised share capital of CIL as on 31-03-2010 was `8904.18 crore. The Foreign Subsidiary Authorised Share Division of Authorised share capital given Company Capital (Meticais/ as under:- USD) Coal India Africana 25000 Meticais (i) 90,41,800 Non- ` 904.18 crore. Limitada. (Approx.USD1000) cumulative 10% redeemable preference 10.2.3 Coal India Limited (HQ) shares of Rs. 1000/- each. (ii) 8000000000 Equity ` 8000.00 10.2.3.1 CIL is mainly responsible for laying down Shares of Rs. 10/- each. crore. corporate objectives, approving and Total. ` 8904.18 monitoring performance of subsidiary crore. companies in the fields of long-term planning, conservation, research Authorised Share Capital of the Subsidiary and development, production, sales, Companies of CIL as On 31-03-2010 finances, recruitment, training, safety, industrial relations, wages, material (A) The authorised share capital of the for all operational, acquisition of land, Subsidiary companies of CIL are as under: execution of welfare programmes, Subsidiary Company Authorised Share maintenance of safety standards, Capital (Rs. in crore) improvement of industrial relation etc. Bharat Coking Coal 2,500.00 10.2.3.2 In addition to the above functionmatters, Limited. commissioning and execution of new Western Coalfields 800.00 as well as on-going projects, man Limited. management, production, consumer Central Coalfields 1,100.00 satisfaction etc. In addition, subsidiary Limited. companies perform related functions, Eastern Coalfields 2,500.00 such as maintaining liaison with Limited. concerned State Governments, CIL Northern Coalfields 1,400.00 has directly under its control the Limited. development and exploitation of the South Eastern 1,300.00 coal mines in the North-Eastern States, Coalfields Limited. and the coal marketing network spread Mahanadi Coalfields 500.00 throughout the country. Limited. Central Mine 50.00 10.2.4 Joint Venture of CIL Planning & Design (I) Joint Venture Between CIL And NTPC Institute Limited. A Joint Venture company between CIL 66 Public Sector Undertakings in Coal Sector and NTPC has been formed with effect of MNH Shakti Ltd as on 31-03-2010 was from 27th day of April , 2010 as CIL `2510 Lakh. NTPC Urja Private Limited under the (iii) International Coal Ventures Limited. Companies Act, 1956 as Private Limited Company. It is a 50 : 50 JV between CIL International Coal Ventures Limited and NTPC with authorised share capital (ICVL) has been incorporated on 20th of `10 crore and paid up capital of `5 lakh. May, 2009 under the Companies Act, 1956. The main object of the Joint Venture is to International Coal Ventures Ltd is a Joint carry on the business of Coal mining and Venture Company of SAIL, CIL, RINL, generation of electricity etc. NMDC and NTPC with equity holding in the ratio of 2:2:1:1:1 respectively. The (II) Joint Venture of MCL object of the Company is to carry on the Mahanadi Coal Fields Limited, a business in India and abroad for overseas subsidiary of Coal India Limited is acquisition and /or operation of coal mines having two Joint Venture Projects or blocks or assets or properties by way of namely Gopalprasad OCP(15.00 Mty) purchasing, taking on lease, licence etc. and Talabaria OCP (20.00 Mty). For this (iv) Joint Venture BEML Ltd, CIL & DVC purpose, two JV Companies have been formed. (For acquiring the assets of M/s. MAMC and starting manufacturing of equipments (i) MJSJ Coal Ltd was incorporated on 13th at Durgapur Plant.) August, 2008 under the Companies Act, 1956 as a Joint Venture Company of MCL. The representatives of the consortium For Gopalprasad OCP, MJSJ Coal Ltd has companies formally took over the been formed where MCL has 60% shares, possession of the assets and properties JSW Steel Ltd & JSW Energy Ltd having of all the establishments of M/S MAMC 11% shares each and Jindal Stainless from the Official Liquidator (OL) before Ltd and Shyam Metallics & Energy Ltd. 31st October, 2010. ( formerly known as Shyam DRI Power Share holder’s agreement between Ltd ) having 9% shares each. The Paid up CIL,DVC and BEML Ltd , which is Share capital of MJSJ Coal Ltd as on 31- under preparation , provides for equity 03-2010 was ` 40.10 crore. participation of BEML Ltd – 48% , CIL (ii) MNH Shakti Ltd was incorporated and –26% & DVC 26% and authorised capital ` registered under the Companies Act, of 125 crore. 1956 on 16th July, 2008 as a Joint Venture The factory land measuring 193.67 Company of MCL. For Talabaria OCP, acres at Durgapur has been handed MNH Shakti Ltd has been formed where over provisionally to the representative MCL has 70% shares, Neyveli Lignite of BEML Ltd by the Asonsol Durgapur Corporation Ltd having 15% shares and Development Authority (ADDA) on HIL having 15% shares.