ESG Report 2019-20 Table of Content

Coal India Limited ESG Report 2019-20 Table of Content

01 Committed for Cleaner Environment 12 02 Environment Policy & Management Systems 25 03 Energy and Emissions 26 04 Waste and Effluents 28 05 Water 29 06 Biodiversity Management 31 07 Workforce 33 08 Occupational Health and Safety 38 09 Human Rights 41 10 Rehabilitation and Resettlement 43

11 Community Engagement 45

12 Governance 52 13 Materiality and Stakeholder Engagement 56 14 Risk and Crisis Management 61 15 Ethical Business Practices 63

Data and Information Security 64 16 2 List of Abbreviations

ACM Asset Closure Management AFDSS Automatic Fire Detection and Suppression System AMRUT Atal Mission for Rejuvenation and Urban Transformation APS Accountability Principles Standard ARD Acid Rock Drainage ASSOCHAM The Associated Chambers of Commerce & Industry of India AVA Audio-Visual Alarm BCCL Bharat Coking Coal Limited BETI Basic Excavation Training Institute BSC Balanced Score Card BT Billion tonne CA Compensatory Afforestation CAAQMS Continuous Ambient Air Quality Monitoring Station CAGR Compound Annual Growth Rate CAMPA Compensatory Afforestation Fund Management & Planning Authority CCI Competition Commission of India CCL Central Coalfields Limited CCO Coal Controller’s Organization CDM Clean Development Mechanism CETI Central Excavation Training Institute CHPs Coal Handling Plants CIAL Coal India Africana Limitada CIL Coal India Limited CIPP Code of Integrity for Public Procurement CISF Central Industrial Security Force CISPA Coal India Sports Promotion Association CM Chief Minister CMPDIL Central Mine Planning and Design Institute Limited CMR Coal Mines Regulation COVID 19 Coronavirus Disease 2019 CPSE Central Public Sector Enterprise CR Crore CRO Chief Risk Officer CSR Corporate Social Responsibility CSR&SD Corporate Social Responsibility & Sustainability Development

3 CTL Coal to Liquid CVC Central Vigilance Commission CVO Chief Vigilance Officer CWS Central Workshop DCC Dankuni Coal Complex DC/DRC Data Centre and Disaster Recovery Centre DDUGJY Deen Dayal Upadhyaya Gram Jyoti Yojana DETP Domestic Effluent Treatment Plant DGMS Directorate General of Mines Safety DG Sets Diesel Generator Sets DIN Director Identification Number EBITDA Earnings Before Interest, Tax, Depreciation and Amortization EC Environmental Clearance ECL Eastern Coalfields Limited EESL Energy Efficiency Services Limited EIA Environmental Impact Assessment EMP Environmental Management Plan EMS Environment Management System ERM Enterprise Risk Management ESG Environmental, Social and Governance ETF Exchange Traded Fund ETMS Environmental Tele Monitoring System ETP Effluent Treatment Plant FICCI Federation of Indian Chambers of Commerce and Industry FRI Forest Research Institute FSA Fuel Supply Agreement GHG Green House Gas GoI Government of India GPS Global Positioning System GST Goods and Services Tax Ha Hectare HEMMs Heavy Earth Moving Machines HQ Headquarter HURL Hindustan Urvarak and Rasayan Limited ICC Internal Complaints Committee ICERT Indian Computer Emergency Centre Response Team IICM Indian Institute of Coal Management INR Indian Rupee

4 ISO International Organization for Standardization JBCCI Joint Bipartite Committee for The Coal Industry JV Joint Venture KVAR Kilovolt Ampere Reactive kWh Kilowatt hour kWh/te Kilowatt Hour per Tonne kWp Kilowatt Peak LCOE Levelized Cost of Electricity LED Light Emitting Diode LTA/LTC Leave Travel Allowance/Leave Travel Concession LTC Low Temperature Carbonization MCL Mahanadi Coalfields Limited MCP Mine Closure Plan MDTP Mine Discharge Treatment Plant mm Millimeter MoC Ministry of Coal MoEF&CC Ministry of Environment, Forest and Climate Change MoL&E Ministry of Labour and Employment MoU Memorandum of Understanding MRS Mine Rescue Station MT Million tonne MU Million Units MVTR Mine Vocational Training Rules MWp Megawatt Peak NCCC National Coal Consumer Council NCL Northern Coalfields Limited NCWA National Coal Wage Agreement NEC North Eastern Coalfields NEERI National Environmental Engineering Research Institute NGO Non-Governmental Organization NIT Notice Inviting Tender NPV Net Present Value NSDC National Skill Development Corporation NT-ST North Tisra-South Tisra OB Overburden OCP Open Cast Project OHSAS Occupational Health and Safety Management System

5 OHS Occupational Health and Safety OSS Open-Source Software PAPs/PAFs Project Affected Persons/ Project Affected Families PHMPs Principal Hazards Management Plans PM CARES Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund PMS Performance Management System PRIDE Performance Report for Individual Development of Executives PRP Performance Related Pay RCCC Regional Coal Consumer Council R&D Research and Development RFCTLARR The Right to Fair Compensation and Transparency in Land Acquisition, Act, 2013 Rehabilitation and Resettlement Act, 2013 R&R Rehabilitation and Resettlement RMC Risk Management Committee RMR Rock Mass Rating SC Scheduled Caste SCG Surface Coal Gasification SDG Sustainable Development Goal SDP Sustainable Development Policy SEBI Securities and Exchange Board of India SECI Solar Energy Corporation of India SECL South Eastern Coalfields Limited SHGs Self Help Groups SMPs Safety Management Plans SMS Safety Management System SOPs Standard Operating Procedures SPCB State Pollution Control Board ST Scheduled Tribe STP Sewage Treatment Plant TFL Talcher Fertilizers Limited TSP Tribal Sub Plan UN United Nations UN SDGs United Nations Sustainable Development Goals WASH Water Access Sanitation & Hygiene WCL Western Coalfields Limited WIPS Women in Public Sector ZHM Zero Harm Potential 6 Foreword

Environmental, Social and Governance (ESG) Our welfare activities extend beyond our issue is gaining importance to assess own employees and encompass a wide company’s impact on the business array of populace living within the proximity environment. It is also critical for the Nation. of our mining areas. Our motto in this Being a socially conscious entity, CIL has regard is that their quality of life should not taken it upon itself to reinforce improved be in any way lower than what it was before transparency on environmentally and their offer of land to us for mining. socially responsible practices. Coal India’s first ESG report highlights environmental, Our company is one of the largest spenders social and governance values integral to the on Corporate Social Responsibility. Our company. With growing focus on social approach towards CSR is not merely cheque responsibility, ESG is globally drawing book philanthropy but to impact the lives investors’ interest. positively with enhancement in quality of life. We believe the people we help are While continuing to contribute to the partners in our growth. Our CSR endeavor country’s expanding energy requirement, we goes beyond the mandated Act of 2% of are equally sensitive to the belief that unless average net profit for three immediate environmental, economic and social preceding financial years. The consolidated sustainability standards are met there annual 5-year average CSR spend of the cannot be an all-round growth. These three company as whole is INR 612 Crore per are interdependent and mutually reinforcing annum against the statutory budget forces that hold aloft our sustainable allocation of INR 408 Crore which is a initiatives. A strong corporate governance reflection of our CSR commitment. Coal acts as a ballast in this endeavor. India as whole, during 2019-20, spent INR 587 Crore on its CSR activities which is 48% Beyond production and off-take, concern for more than INR 396 Crore, the amount that environment and society is as important to was required to be spent under CSR in us as the twin performance parameters. We accordance with the Companies Act, 2013. are committed to giving back to the environment, to the extent possible, what During the Covid-19 pandemic in what we take from it. Our various measures in could be the highest mobilization of Covid ensuring resource efficiency include water care isolation beds by a PSU, CIL has set up conservation, waste minimization, upwards of 1500 beds. biodiversity protection, restoration of mined out areas, creation of forests and eco parks We comply with the conditions of Corporate to preserve native ecosystems, measures to Governance, as stipulated in the guidelines improve air quality and sustainable mine on corporate governance for CPSUs in letter closure. We are also adopting many green and spirit. We ensure effective governance initiatives. Laying impetus on use of through high degree of ethics, justice and alternative green energy source we are equality. venturing to set up solar power generation projects of 3,000 MW capacity by FY’24. Aldous Huxley once said ‘The prosperity we have known up to the present is the We are conscious of our responsibility consequence of rapidly spending the towards people displaced by our mining planet's irreplaceable capital’. It is time we operations and are committed to meet their paid our debt back by adhering to the aspirations through inclusive development. tenets of sustainable development. Coal India is committed in its resolve to do that with support from its varied stakeholders.

(Pramod Agrawal) How are we structured

66.13% 33.87% President of India Other investors (through MoC, GOI) (Institutional and as on 31-03-2020 retail)

NEC

ECL BCCL CCL WCL SECL MCL NCL CMPDIL CIAL

HURL(JV) TFL (JV) 64% 64% Chhattisgarh East Chhattisgarh East Railway Limited(JV) West Railway Limited

CIL NTPC Urja Private Limited (JV)

64% Jharkhand Central Railway Limited 100% 64% Mahanadi Basin Mahanadi Coal Power Limited Railway Limited

*For further details of the organizational structure please refer to our Annual Report FY 2019-20

602 MT INR 1,34,979 CR. INR 24,071 CR. Coal Produced Gross Sales Profit Before Tax

99% Producing coal supply to power 83% INR 43,059 CR. utilities is being assessed Paid towards Royalty, of India’s entire coal by third party sampling Cess, GST and other output agencies levies

80% 1,154 Mm³of 2,72,445 of the Company’s entire Overburden Removed Total Employees coal supply was catered to power sector

Two of the subsidiaries ISO of CIL i.e., CCL and MCL 4.85MWp were conferred Solar Power Projects, Certifications National CSR Award by successfully generating ISO:14001, ISO:9001, Hon’ble President of solar energy OHSAS:18001, India for contribution to ISO:17025, ISO:50001 national priority areas Water Biodiversity Tree Plantation

Our objective at CIL is to We continuously invest in We implement widespread tree maximize mine water reducing our negative impact plantation as one of the utilization for community on environment by enhancing methods to mitigate climate use both for domestic and green cover. change irrigation purposes. 7.48 Lakh 11% 19.8 Lakh people were benefitted and Increase in total area of green Saplings were planted during got access to clean water for cover in 2019-20 compared to FY 2019-20 domestic and irrigational previous year purposes

Environmental Highlights CIL has been focusing on improving performance of its business operations by reducing the impact on environmental parameters

Emissions Energy Renewable Energy

We focus on taking Being an eco-friendly company, We are looking to diversify our measures to reduce CO2 we have adopted several energy portfolio towards emissions generated from energy conservation measures renewable energy sources, business operations especially solar, etc.

1% 0.3% CIL is developing Decrease in scope 2 (electricity Decrease in specific energy 3,000 MW Indirect GHG emissions) in consumption in 2019-20 as Solar Power Projects by FY24 2019- 20 as compared to 2018- compared to 2017-18 19 Female employees working in CIL and its subsidiaries as of March 2020

41.14%

*Employee turnover rate in 0.12 2019-20

**Human Capital ROI in 2019-20

• *Employee turnover rate is calculated using employees who leave the organization voluntarily • **Human Capital Return on Investment provides a means of measuring profitability in relation to total employee costs. It is derived by removing non- employee costs from overall operating costs and deriving the resulting operating profitability. This metric provides a view into the degree to which economic value is derived looking at profitability solely in relation to human capital costs.

37% decrease in fatalities in 2019-20 compared to the previous year 6.3% decrease in severe bodily injuries in 2019-20 compared to the previous year Our efforts in making water available to the communities around our mining areas benefitted 7.48 Lakh population during the fiscal year. 11 1. Committed for Cleaner Environment

We are committed to create a clean and This helps us in the following ways: healthy ecosystem concomitantly with our mining operations to minimize adverse • Keeping the environmental footprint to a environmental impacts. Our efforts to minimum; improve ecological footprint and • Ensuring optimum production of coal; environmental protection measures are • Minimizing the risks of contamination of backed by advanced technology and soil and groundwater; infusion of requisite finance for concrete • Minimizing energy demand in mining action. operations; Our environmental performance • Minimizing particulate matter (dust) and parameters are studiously monitored by a exhaust gases; dedicated team of 238 environmental • Increasing environmental and health engineers across the coal companies. awareness.

1.1. Implementation of New Technologies For the year 2019-20, total coal production from open cast mines was 572 MT of which To optimize our resources and minimize our 47% was through Surface Miners at 269 MT. environmental footprint, we continuously strive to implement new technologies / machineries such as Surface Miners, Continuous Miners and Longwall Mining.

Fig 1.2: Surface Miner at CIL mine 12 1.2. Mechanized Evacuation of Coal to Reduce Carbon Footprint Of these 35 projects, 2 have been already commissioned and work has been As a green initiative for an efficient and awarded to 21 projects which are in environment friendly mechanized coal various stages of implementation. As an transportation in First Mile Connectivity extension to this under Phase II CIL has (FMC) we have identified 35 major coal identified 14 more projects making it a projects, each with 4 Million Tonne/Year total of 49 FMC projects. and more capacity, where coal will be transported through conveyor belts from This is a major move in reducing pitheads to dispatch points. This replaces environmental pollution in our coal road transport of coal leading to transportation bringing comfort to the considerable reduction in dust and air local populace in the proximity of these pollution levels. In addition to 151 MTs mines. Additionally, the step enables us to that is being moved through this reduce noise pollution, decrease carbon environment friendly mode, around 405 footprint, bring down usage of water in MTs of coal would be transported through coal loading and transfer activities. conveyor by FY’24.

Fig 1.3: Mechanised evacuation of coal from the pithead to the dispatch point under FMC initiative

13 1.3. Reduction in Road Transport

Slowly we are migrating away from road Over the last three years, we have transportation of coal by switching to substantially increased our rail portfolio as a alternative modes of transports such as rail, preferred mode of transport. Around 80% of conveyor belts etc. The multiple advantages our coal gets transported through non-road would be reduced traffic congestion, lesser mode. During 2019-20, a total quantity of road accidents and reduce impact on air 466.72 MTs of coal was transported through quality. non-road modes while 115.20 MTs was transported through exclusive road mode.

Fig 1.5: Transportation of coal via railways 14 1.4. Effective Utilization of Mine Water

Our endeavor is to utilize mine water more 47% was reused for CIL’s own operations efficiently. We discharged 6,164 Lakh kilo and the remaining 16% was used for liters of mine water during 2019–20 of groundwater recharge and stored for future which about 37% was used by the nearby use. Around 7.4 Lakh members of the communities for domestic and irrigation community were benefitted and got access purposes. to clean water for domestic and irrigational purposes.

Sewage Treatment Plant STP Treated Water Pond for Ground Water Recharge

Conversion of Mine Water to Drinking Water Mine water from Pipla

Fig 1.6: Discharged mine water use

1.5. Development of Eco - Parks in Reclaimed Areas

Reclamation of mined out areas and Subsequently, plantation is carried out over external overburden (OB) dumps is a major the technically reclaimed area which is environmental activity of CIL. This is termed as biological reclamation. CIL has pursued in accordance with Environmental planted multispecies saplings with proper Management Plan and Mine Closure Plan mix of timber yielding, fruit-bearing, approved by the Ministry of Environment, medicinal and other useful varieties. To Forest and Climate Change (MoEF&CC). date, CIL has established a total of 23 such Open cast mines are filled up with extracted eco parks and mine tourism projects on a overburden as part of technical reclamation. total area of 226.13 hectares. 15 Fig 1.7: Ananya Vatika Eco-Park

South Eastern Coalfields has converted dead overburden dump of Rajnagar OCP in Hasdeo Area into Ananya Vatika, an exotic Eco-Park

Fig 1.8: Parasnath Udhyan Parasnath Udhyan, this park has been made by Bharat Coking Coal Limited on the Amalgamated Keshalpur West Mudidih colliery

16 Fig 1.9: Dr APJ Abdul Kalam Park

Dr APJ Abdul Kalam Park funded by Western Coalfields Limited in Chandrapur, Maharashtra.

Fig 1.10: Gokul Eco-cultural Park Gokul Eco-cultural Park, Lodna Area, this park has been developed by Bharat Coking Coal Limited on the over 10 ha of mined out land in NT-ST-Jeenagora Project of Lodna Area.

17 Fig 1.11 Jhanjra eco - park Jhanjra eco park was developed by Eastern Coalfields Limited

Fig 1.12: Ananta Medicinal Garden Ananta medicinal garden has been developed by Mahanadi Coalfields Limited on the backfilled area of Ananta Open Cast Project

18 Fig 1.13: Gunjan Eco-Park Gunjan Ecological park was developed by ECL on the mined out area at Ratibati OCP

Fig 1.14: Govardhan Eco-Park Govardhan Eco-Park is partially developed on an Old over burden dump of Bera Colliery, Bastacolla Area by Bharat Coking Coal Limited

19 Fig 1.15: Rose Garden Rose Garden was developed by Northern Coalfields Limited at Jayant Opencast Project

Fig 1.16: Kayakalp Vatika Eco-Park

Kayakalp Vatika Eco-Park has been developed by Central Coalfields Limited on the mined-out area of Piparwar Open Cast Mine

20 Fig 1.17: Saoner Eco-Park Saoner Eco-Park has been developed by Western Coalfields Limited on the mined-out area of Saoner underground mines at Saoner, Maharashtra

Fig 1.18: Dr. Bhupen Hazarika Eco-Park

Dr. Bhupen Hazarika Eco-Park has been developed by North Eastern Coalfields Limited

21 1.6. Pisciculture

Pisciculture plays a vital role as income Through advanced pisciculture techniques generation and livelihood for the local CIL converts local ponds into pisciculture communities. centers which act as income generators to local populace.

Fig 1.19: Pisciculture at Bishrampur Opencast Mine, SECL

22 1.7. Green Energy Initiatives: Solar Energy Applications As an alternative environment friendly During 2019–20, a total of 46.26 Lakh units green energy source, solar power were generated from solar installations generation lists high on our diversification commissioned at CIL and our subsidiaries. where we are venturing to set up solar power generation projects of 3,000 MW capacity by FY’24.

Table 1.1: Details of subsidiary-wise solar installations

Subsidiary and Type of Solar Installation Solar Energy Generated Location

ECL Roof-top Solar 197 kWp

Roof-top Solar BCCL 6KWp

Roof-top Solar CCL 872.5 kWp

Roof-top Solar WCL 1097 kWp

Roof-top Solar CIL HQ 160 kWp

CMPDIL HQ and Roof-top Solar 500 kWp Regional Institutes

MCL HQ Ground Mounted Solar 2.016 MWp

Fig 1.20: Ground Mounted Solar panels in MCL 23 1.8. Overburden to Sand

Most of Indian coal deposits occur in major The sand segregated from OB formations is river basins of Central India, like Damodar, being provided to agencies which are Wardha, Hasdeo etc. Sand is essential implementing housing under government ingredient for construction of housing schemes like Pradhan Mantri Awas Yojana colonies and commands huge demand. (PMAY) and the likes. About 57,460 m3 of Currently it is met through sand mining and sand was supplied to PMAY in FY 2019-20. dredging from water courses of rivers. This Also, about 402.672 m3 of sand was affects the eco-system of rivers and is supplied to agencies engaged by preventable. We have taken proactive steps government for construction activities. CIL is in this direction and started segregating committed to implement the same in its sand from our overburden formations. other subsidiaries in a phased manner.

WCL has commissioned two OB to sand The commissioning of sand segregation processing plants, each of 250 m3/day plants will improve the riverine ecosystem, capacity. improve the flow, accelerate ground water recharge potential and quality of water Additionally, another OB Processing Plant at flowing in their courses. Sand segregation Gondegaon OCM is proposed to be plants will go a long way in preventing commissioned in 2020-21 with a capacity of mining / dredging of river courses which will 2000 m3/day. WCL has signed a MoU with be CIL’s contribution to Mother Nature. MOIL Ltd for supplying 1,00,000 m3 of sand & Kamptee Nagar Parishad for supplying 15,000 m3 of sand for one & three-year period, respectively.

Fig 1.21: Conversion of overburden to sand in WCL 24 2. Environment Policy and Management System

Environmental Management System (EMS) conserving natural resources, reclaiming is a set of processes and practices that land, improving biodiversity, recycling and enables an organization to reduce its disposing waste responsibly and addressing adverse environmental impact and increase climate change for inclusive growth. its operational efficiency. Our objectives are as follows: We are pursuing EMS through several policies and procedural mechanisms to • Plan and design projects with due create a positive impact on environment. consideration to environmental aspects. • Conduct mining and associated 2.1. Diversification to Greener Zones operations in an environmentally responsible manner. CIL accounts for around 83% of the entire • Prevent pollution of surrounding habitat coal produced in India. As one of the fastest through continuous monitoring and growing economies, our country’s energy mitigation activities. demand is also expanding. This is where • Implement Environment Management CIL steps to fulfill a major portion of the Plan (EMP) in all mines. demand. • Implement programmes aimed at energy efficiency and greater use of renewable India is a signatory to CoP 21 - Paris Climate energy to reduce our carbon footprint. Change Conference and is committed to • Strive for continuous improvement in reduce greenhouse gas emissions by 33% to environmental performance through 35% by 2030 and simultaneously raise the target setting, measuring progress and non-fossil fuel power generation capacity to taking corrective action. 40%. We are planning to migrate from fossil • Create environmental awareness fuel driven energy economy to cleaner and amongst employees and local greener forms of energy. Apart from our communities through proactive core mining operations we are also stepping communication. into alternative greener sources of energy to address environmental issues. Our Our Environmental Policy can be accessed diversification moves in this direction at: include clean coal technologies such as Coal https://www.coalindia.in/media/documents Mine Methane (CMM), Coal Bed Methane /CIL Corporate Environmental Policy (CBM) and Coal to Liquid (CTL). 2018.pdf

We are committed to promote sustainable Our subsidiaries / projects have ISO development by protecting environment certifications for Quality Management through integrated project planning, System (QMS), Environmental Management preventing and mitigating pollution, System (EMS) and Occupational Health Safety Management System (OSHAS).

Our ISO Certifications

ISO: 9001 OHSAS: 18001 3 Subsidiaries , CIL HQ , ISO: 14001 ISO: 50001 ISO: 17025 3 Subsidiaries &21 CMPDI HQ & its 7 Rls 3 Subsidiaries & CIL HQ CIL (HQ) 11 Laboratories units and 45 units

25 Fig 2.1: Summary of certifications for FY 2019-20 3. Energy and Emissions

3.1. Energy Use 3.2. GHG Emissions

Coal is a dominant commercial energy fuel Scope 1: Direct GHG emissions that virtually empowers the Power Sector of India meeting its rising demand. Coal mining Our GHG emissions arise mainly from the is an energy intensive process and involves fuel combustion in our processes and considerable use of fuel and electricity. Our owned vehicles. During 2019-20, our total efforts are oriented towards optimizing Scope 1 emission was 10,94,711 tCO2. energy consumption. We have implemented several advanced technologies such as Scope 2: Indirect GHG emissions Surface Miners, Longwall Mining, Continuous Miners to reduce our fuel and Our Scope 2 emissions primarily come from energy use. We are proactively switching energy purchased for our operations. For over to increased rail mode of coal transport the year 2019-20, our Scope 2 emissions and reducing dependence on road were 37,01,252 tCO2. transport. This further reduces our fuel use. In 2019-20, our coal-producing subsidiaries consumed a total of 184.94 million units of energy. The details are provided in Figure 3.1 below.

Furthermore, reducing energy consumption at mines also helps us in reducing Green House Gas (GHG) emissions. We are a responsible organization and are well-aware of impacts of climate change. We take great responsibility in providing affordable energy with minimal carbon footprint.

Total (CIL)

MCL

SECL

WCL

NCL

CCL

BCCL

ECL

0 5 10 15 20 25 30

ECL BCCL CCL NCL WCL SECL MCL Total (CIL) 2018-19 16.87 26.43 8.32 4.48 9.37 6.26 2.16 7.42 7.42 2019-20 16.37 26.56 9.41 4.26 8.4 6.63 2.24 7.4 Fig 3.1: Subsidiary-wise specific energy consumption in (kWh/te) 26 Energy Consumption Statistics

Coal Production Energy consumption Coal Production In terms of total coal Coal production has decreased production, specific energy by 0.78% in FY2019-20 consumption during FY2019-20 compared to FY 2018-19 was 7.40kWh/Te compared to 7.42kWh/Te in FY 2018-19, with a decrease of 0.27%

Electricity *Composite Consumption Production Electricity consumption has Energy Consumption decreased to 4,459.34 Million In terms of composite Units (excluding washery) in production, specific energy FY2019-20, compared to consumption (kWh/m3 4,503.31 Million Units ) during FY2019-20 was 2.91 (excluding washery) in FY 2018- compared to 2.78 in FY2018-19, 19, amounting to reduction of with an overall increase of 1%. 4.67%**

*Composite Production is the sum of OBR uncovered and coal produced ** This is due to extra pumping needed due to above average monsoon

27 4. Waste and Effluents

4.1. Waste Management

As a responsible organization, we manage We have prepared an e-Waste Policy in our waste with a philosophy of ‘Reduce, 2019, in order to dispose e-Waste in an Reuse, Recycle’. We deploy advanced efficient and eco-friendly manner. The methods to treat different type of waste policy can be accessed at: appropriately. Some of the major type of https://www.coalindia.in/media/documents waste that we generate include, /CI L Corporate E- Waste Policy tFQLJHH.pdf overburden, mine water, process waste, used oil and sludge. This waste is generated We have adopted strategies for improving during our mining operations. We our existing waste management processes periodically dispose our hazardous waste in that focus on improving existing disposal line with the stipulated law of the land and methods and taking preventive measures submit desired documents to the regulator for future waste disposal. State Pollution Control Board(SPCB). We have developed a policy for managing We dispose our hazardous waste through fly ash that gets generated in captive third party agencies that are authorized by thermal power plants. The policy acts as our the Central Pollution Control Board(CPCB) or commitment to dispose fly ash in an State Pollution Control Boards. We had no environment-friendly manner and can be incidence of coal or oil spillage during the accessed at : year 2019-20, at our mines. We pursue https://www.coalindia.in/media/documents strict safeguards to ensure that our /CIL Fly ash guidelines 2019.pdf. operations have minimal waste generated.

Fig 4.1: Discharged Mine water from WCL utilized for irrigation purpose

28 5. Water

Ensuring water availability is one of the For further details, refer to page 50 of our pressing challenges faced by mining sector Sustainability Report. across the globe. The communities are (https://www.coalindia.in/media/document concerned with water related impacts s/Coal_India_Sustainability_FY2019- arising due to mining projects. 20_ESG_Issues_Assured.pdf) Simultaneously, to address the concerns of stakeholders, earn community acceptance In BCCL, the total mine water discharge and ensure operational sustainability, it has quantity is 1,279 Lakh m3/year, out of which become crucial for us to formulate and 235 Lakh m3/year was used for domestic implement a water stewardship strategy. purpose and irrigation use, 569 Lakh m3/year is utilized for ground water 5.1. Water Consumption and Stress recharge through ponds and also utilized by nearby population for its other purpose Our objective is to maximize mine water such as domestic use, bathing, irrigation utilization for community use. Out of the etc. and 71 Lakh m3/year water has been 6,164 Lakh m3 of mine water discharged at reserved for SOS use by BCCL as Jharia is the end of FY’20, around 37% was used by affected by coal fire. All above data is as per the nearby communities, both for domestic validated report submitted by IIT-ISM, and irrigation purposes. The total quantum Dhanbad. of ear (2019–mine water used was 2,237 Mahanadi Coalfield Limited (MCL) Lakh m3/y20) by community which conducted a surface runoff study through benefitted 7,48,184 people in 590 villages. digital elevation modelling (DEM), by NIT, 47% of the mine water discharge (2,922 Rourkela, for all its 15 OC mines. The 3 Lakh m /year) was used for CIL's own assessment concluded that all the OC mines domestic and industrial purposes while the can be made zero discharge by utilizing remaining 16% (1,005 Lakh m3/year) was mine water in the existing water treatment used for ground water recharge. plants and in upcoming washeries. Presently the water is drawn from rivers which can be prevented by creating additional sump in the mine floor.

Fig 5.1.: Mine water consumption in CIL 29 CIL has a comprehensive Risk Management • Dewatering: Removing excess water Framework that addresses water related from our operational sites risks. Additionally, the EIA / EMPs prepared • Extreme weather events: Variable for our projects include identification of rainfall, floods, cyclones and droughts water related risks. No water related • Water sanitation and hygiene (WASH): incidents were reported during 2019–20. Providing poor quality of water to neighbouring communities from our mines. 5.2. Water related Risks • Environmental systems: Soil Through a preliminary assessment we have contamination and groundwater identified water related risks that can pollution from untreated wastewater potentially impact well-being of our discharge. • stakeholders including employees, Regulatory compliance: The risk of contractors, local communities and our penalties and fines from regulatory operations. The risks could emerge from offices for non-compliance with fluctuations in the water levels, water flows governmental norms. • and water quality. The risks could also occur Catchment-level risks: Contaminating within the immediate area of the operation water systems near our operating sites. • or in the surrounding catchment area. Management of operations: The water related risks involved in expansion of our Water related risks Identified: operations and asset closures. • Scarcity of water: Lack of water or high water-stress. Being a responsible corporate citizen, we • Quality of water: Chemically, physically have also adopted strategies in order to or biologically contaminated water being monitor the quality and quantity of our used or discharged. water consumption and discharge. • Water consumption: High level of freshwater consumption in our business operations.

Fig 5.2: Bird’s eye view of SILO in Bharatpur OCP, MCL 30 6. Biodiversity Management

We operate in remote and environmentally were no forests. Keeping native biodiversity sensitive areas. However, we have a strong in mind, we plant indigenous species to management control for ensuring minimal preserve the native ecosystem through or no damage to the environment and expert agencies such as State Forest biodiversity. Development Corporation’s.

6.1. Biodiversity Commitment For example, Gokul Eco-Cultural Park in Recognizing the importance of preserving Lodna area is being developed with socio- the biodiversity our comprehensive cultural aspects to benefit the local environmental policy includes biodiversity communities. Over 10 hectares of mined management and ecological restoration as out land in NT-ST-Jeenagora Project of focus areas. Lodna area is covered under this park. The aim was to develop and dedicate the park As an extension of our commitment to to the local communities of the surrounding maintain, enhance and conserve region. Additionally a temple complex has biodiversity and ecosystem, extensive tree been constructed at the topmost point of plantation is undertaken on reclaimed back the site to respect local communities. filled areas, settled overburden (OB) dumps, areas in and around mines, roadsides, 6.2. Biodiversity Exposure and Assessment townships, residential areas and available vacant spaces. Furthermore, a conservation CIL appreciates that its major coal reserves plan is implemented to protect flora and occur in states which have forest land and is fauna as per the environmental clearance totally committed to ensure that minimal (EC) / forest clearance (FC) stipulations. adverse effects are felt on the forest ecosystem dues to its activities. The We continuously invest in establishing state- company does not undertake mining in of-the-art mining operations aiming to ecologically sensitive areas like National reduce adverse impact on surroundings. We Parks, Wildlife Sanctuaries, ESZ, animal also attempt conserving natural resources corridor etc. In every project involving forest for future generations through reclaimed land, for conservation of wildlife, an amount mined out areas, afforestation and eco- as notified by MoEF&CC/ State governments restoration post mine closure. During 2019- is deposited as Regional Wildlife 20, Rs. 606.6 Crore has been reimbursed Conservation Plan Fund in CAMPA for from escrow fund for progressive and mine proper implementation of Wildlife closure activities. Conservation Plan in State. Further, wherever statutorily mandated a Site Our subsidiaries planted more than 19.8 Specific Wildlife Conservation Plan is got Lakh saplings during 2019–20, covering 813 prepared through an expert agency & ha. which reflects protection and approved by Chief Wildlife Warden of the restoration of ecosystems on land. concerned state. The amount approved by the CWLW is deposited in CAMPA fund & For further details on tree plantation and conservation plan is implemented by expenditure on environment and tree concerned DFO. An amount of INR 1.74 plantation, refer to our Sustainability Report Crore was deposited by SECL under this (https://www.coalindia.in/media/document head in CAMPA. s/Coal_India_Sustainability_FY2019- 20_ESG_Issues_Assured.pdf)

The plantations have created extensive 31 green zones in mining areas where there The objective of both regional and site The details of EIA and EMP are publicly specific Wildlife Conservation Plans is to disclosed for all our mines and the have an assessment of present status of guidelines for the same are available at flora/fauna and habitat of major wildlife https://www.coalindia.in/media/documents species in project and its surrounding buffer /Guidelines for Environmental Personnel in area i.e. 10 KM buffer zone. Experts and Mines. consultants assess the area for probable degradation of forests and habitats due to Our land reclamation performance is project implementation and chalk out routinely monitored by satellite mitigative strategies through discussion surveillance. In total, 52 major open cast with stakeholders of locality and forest staff. projects (OCPs), producing more than 5 Conservation plans include habitat Mm³ Coal + OB annually, are monitored improvements, measures to ameliorate every year, while the remaining OCPs, which human-animal interface conflicts and produce less than 5 Mm³ Coal + OB implement measures to facilitate movement annually, are monitored once every three of fauna across planned infrastructures years. The study result for 2019–20 shows causing hindrance in their movement. A list that in 52 major OCPs reclaimed areas of management interventions proposed and account for 65.38% of the total excavated budget estimation are listed for both project area and active mining area is only 34.62% site and impact zone which is then of the total excavated area. implemented by either project proponent and / or Divisional Forest Officer In addition, we are conducting vegetation respectively. cover mapping through satellite surveillance once every three years. Details of satellite Environmental Impact Assessment (EIA)/ imagery studies have also been uploaded on Environmental Management Plan (EMP) is CIL's website. carried out prior to all the mining operations that include land reclamation plan along with detailed biodiversity assessments.

2018-19 2019-20

Subsidiary Number of trees Number of trees Area covered (Ha) Area covered (Ha) planted planted

ECL 2,63,750 105.5 3,17,500 127.00 BCCL 84,312 34.10 1,35,000 54.00 CCL 1,28,025 54.30 1,12,500 45.00 WCL 2,00,000 80 1,35,000 54.00 SECL 7,31,736 291.46 6,85,928 272.00 NCL 3,59,750 143.90 5,35,450 214.18 MCL 43,497 22.17 51,870 45.05 NEC 5,000 2.00 3,370 1.75 CIL 18,16,070 733.43 19,76,618 812.98

Table 6.1: Details of tree plantation

32 32 7. Workforce

7.1. Labour Practices We are a manpower intensive organization Additionally, 16 women-specific training and consider our multidisciplinary programmes with a total of 322 participants professionals and skilled labour as our prime were conducted at CIL. Furthermore, our asset. We are cognizant of the fact that female employees are entitled to maternity employee satisfaction and equality benefits and childcare leave. translates positively, impacting economic and social parameters. Efficient employee In total, we have 76,042 contractual management also improves employee employees who are deployed in various retention, productivity and overall activities. The distribution of executive and engagement. non-executive employees is given in page no. 61 of our Sustainability Report 7.2. Stress on Gender Equality (https://www.coalindia.in/media/document We recognize that employee diversity in s/Coal_India_Sustainability_FY2019- terms of gender is important to facilitate 20_ESG_Issues_Assured.pdf) sustainable, profitable and responsible growth. We ensure that there is no Further, refer to page no. 62 of our discrimination between our male and Sustainability Report female employees. Our recruitment and (https://www.coalindia.in/media/document employee selection processes enable s/Coal_India_Sustainability_FY2019- representation from multiple regions, 20_ESG_Issues_Assured.pdf) for the details religions and social backgrounds. on representation of minorities such as scheduled caste (SC)/ scheduled tribe (ST) in The total manpower of CIL (as on 1 April our total workforce. 2020), including subsidiaries, was 2,72,445 st against 2,85,479 (as on 1 April 2019) the Additionally, 94.08% of our employments previous year. For further details, refer to are covered under National Coal Wage our Sustainability Report Agreement which is finalized once every (https://www.coalindia.in/media/document five years. s/Coal_India_Sustainability_FY2019- 20_ESG_Issues_Assured.pdf) 7.3. Equality and Non-discrimination At present, 19,460 of our employees are We believe that inequalities can be females constituting 7.14% of total strength eliminated through proper wage of employees working with CIL. For further distribution. To remove any scope of bias details, refer to page no. 67 of our and promote equality, the ratio of the basic Sustainability Report salary and remuneration of women to men (https://www.coalindia.in/media/document is same. s/Coal_India_Sustainability_FY2019- 20_ESG_Issues_Assured.pdf) For payment of salary and wages, CIL We value our female employees in the follows the NCWA for non-executives and organization and the women workforce has specified pay scales for executive cadre always been an integral part of our employees. Furthermore, we ensure that business. Smt Jilabi Domin, Feeder Breaker there is no discrimination in compensation, Operator, Smt Fotoja Ganjhu, Drill operator, training and employee benefits, based on Smt Punita Kumari, Drill Operator(Trainee), caste, religion, disability, gender, sexual Smt Jira Padhan, Armature Winder are some orientation, race, colour, ancestry, marital of our role models. status or affiliation with a political, religious There are special programmes in place for or union organization or majority / minority women through forums such as Women in group. Public Sector (WIPS) to encourage them. 33 Our executive staff are covered under CDA During the reporting year FY19–20, no rules for Anti Sexual Harassment and the sexual harassment complaint was reported. staff adherers to the standing order of Government of India for Anti Sexual Additionally, 0.28% of our total workforce of Harassment. Any instances of such actions 765 people were those with disabilities. We are reported to the Internal Complaints endeavor to make continuous efforts to Committee (ICC), set up at every subsidiary provide a conducive environment to our and office of CIL to redress complaints employees for their growth and regarding sexual harassment. development.

All women employees (permanent, contractual, temporary, trainees) are covered under this policy.

Fig.7.1 Some of our role models

34 7.4. Freedom of Association

We provide the right to freedom and We understand that every individual differs collective bargaining to our employees and in terms of his/her value system, personality no child labour or forced / compulsory and individual capability. People also have labour is tolerated at our company. Our varying stances about jobs and working employees are free to be part of any style. For this purpose, corporate leadership registered trade union or employees’ addresses employee individuality and association. The representation of staff is empower workers to enhance their skills in allowed in the bipartite bodies through an atmosphere that suits individual skills. An trade unions / associations of optimal working atmosphere is one in representative nature. Furthermore, we which, through friendly competition, all have a CIL Welfare Board comprising Central workers can leverage their skills and Trade Union representatives and contribute to the company and industry. management representatives who frequently meet, discuss and review various We are committed to transform the mining welfare schemes and their implementation. sector through developing new skills among the existing employees and attracting fresh 7.5. Human Capital Development and diversified talent. We believe in investing in new skills so that our people are We recognize that the quality of our ready for future jobs. Training of our staff is employees helps us to acquire a competitive a critical element in our long-term strategy advantage in the industry. We have a robust for two reasons. Firstly, it enables our team human resource plan, which entails to offer quality service. Secondly, learning is developing diverse workforce capabilities by an integral part of our employee retention investing in their skill development. We policy. We provide our staff with relevant foster employee development by training programmes that allow them to supporting a broad range of both in-house enhance their skills and lead to professional and external training and development development. opportunities. Our approach to human capital development is in tandem with the We have a systematic mechanism of needs Government of India initiatives such as Skill assessment in terms of employee skill India Mission and Atmanirbhar Bharat mapping to determine the training Mission. We aim at creating a work requirements. environment that respects individuality and diversity and promotes individual growth.

Fig.7.2 Universal Equipment Simulator Training in NCL 35 Such skill gap assessment ensures that Tracking the human capital ROI over the last investment in employee development is year, i.e. from 2018 through 2020 well targeted in priority areas and allows for showcases that the economic value customization. Specialized expertise and generated via human capital investment has skills needed by the sector are imparted. improved.

Skill development training programmes for We strive to align all employee related Mining Sirdars, operators of dumpers & initiatives such as training and development tippers, electricians, welders and other programmes, appraisals and recognition National Skill Development Corporation programmes to ensure a consistent way of approved traits are undertaken in different operating and fostering attitude towards subsidiaries of our company. We have doing business. Additionally, we also organized diverse training programmes for conduct employee engagement surveys our employees at subsidiary headquarters, periodically. training centers, Vocational Training Centers and at Indian Institute of Coal Management, 7.6. Talent attraction and retention Ranchi. Few employees were also provided the opportunity of attending external Successful talent attraction and retention supplementary sessions in India and abroad. ensure that we sustain our competitive Over the past few years one of the areas advantage in executing business strategies. wherein we have invested is leadership We have an ongoing process of evaluating development. These qualities are critical to our human capital, business requirements in guiding our people and navigating changes terms of skill set and the working in the work environment. environment to ensure we adequately value talents, skills, backgrounds and experiences The percentage of employees receiving of our diverse and inclusive workforce. We training has witnessed significant increase regularly examine and strengthen our over the years with the number going up policies and procedures, especially those from 36.13% in 2017–18 to 39.42% during related to our talent management 2018–19. However, Covid-19 lockdown processes. decreased the rate to 31.47% during 2019– 20. We have implemented an appropriate and well balanced compensation structure for all A useful metric for monitoring the employee categories, including both fixed investment of a company in human capital and variable components. The variable part is the training cost per employee in the is balanced concerning time horizon with reporting year, calculated as total the organization for all employee levels. We expenditure during the year on training, reward employees across all categories both in-house and external, divided by the based on company-wide and individual number of employees who participated in performance metrics. Our incentive the training sessions. structure is particularly one which keeps employees motivated and ensures better To showcase our return on investment on retention. We strongly believe that talent human capital we calculate the global management and succession planning are standard human capital return on critical activities for a sustainable business. investment (ROI) metric based on the total revenue, total operating expenses and total employee related expenses (salaries and benefits).

36 We ensure that future and long-term These facilities are extended without any management needs are addressed by an discrimination based on caste, class, gender, optimal balance of promoting existing etc. Details about number of employees personnel and hiring fresh talent. who have joined or been released from CIL Employee benefits for executive and non- over the last three years and the reasons for executive employees include salary, wages joining or leaving the organization are and allowances, provisions relating to disclosed on page 63 of our Sustainability employee benefit, contributions to Report: provident fund, pension and gratuity, (https://www.coalindia.in/media/document overtime payments, leave encashment, s/Coal_India_Sustainability_FY2019- attendance bonus, productivity and 20_ESG_Issues_Assured.pdf) . performance linked bonus, other incentives and employee benefits. CIL employees are We operate a systematic process to identify covered under the Coal Mines Provident high-potential talent in the organization and Fund scheme wherein both employer and develop them towards critical roles in the employee contribute an equal share. The business model. An important metric for fund is managed and maintained by the Coal evaluating talent attraction and retention is Mines Provident Fund authorities. Other based on the employee turnover rate where employee benefits applicable to our the ratio of employees who leave the employees comprise LTA/LTC, Life Cover organization voluntarily or due to dismissal, scheme, Group Personal Accident scheme, retirement, or death in service is assessed. Settlement Allowance, Retired Executive The trend in employee turnover ratio shows Medical Benefit scheme and Compensation that CIL has a sound talent management to Dependents of the deceased in mine system. The overall turnover rate has been accidents. Employees are also entitled to about 6%–7% during last three years, which leave encashment and gratuity, as per is among the least in the industry. applicable rules. CIL expenses during 2019– Moreover, between 2018–19 and 2019–20, 20 on employee benefits including leave there has been a decline from 7.05% to encashment, gratuity and other schemes 6.87% on employee turnover (Details are were INR 5,766.60 Crore. further provided on page 63 of our Sustainability Report). Imparting primary education, we support a total of 459 Schools. Of these, 113 are fully CIL's annual performance review system for financed project schools and 281 are all employees ensures that they receive privately managed schools where recurring constructive feedback that helps them grant-in aid is provided. While 45 move up in their career trajectory. educational institutions within the proximity Performance of all the executives below of coalfields receive occasional grant, the Board level up to E7 grade is assessed rest 20 company schools (run on their own through a balanced Score Card based non-financial support) are extended Performance Management System (PMS) infrastructure facility. called 'Performance Report for Individual CIL Welfare Board is the apex body that Development of Executives’ (PRIDE). takes all decisions in matters relating to Performance of E8 and above grade employees' welfare policies. CIL Welfare executives is assessed through PAR-based Board, comprising members from the system governed by DPE guidelines. Further Central Trade Union and the CIL details are available in the PMS Manual. management, regularly meets to review and Performance of all executives is assessed discuss various employee welfare schemes. based on PMS in which all the short-term We also have dedicated residential and and long- term targets are assigned through commercial complexes, sports facilities, mutual discussions. Based on the account, a clubs, schools, medical facilities for variable component pay called performance employees located in remote areas. related pay (PRP) is being given every year to all the executives at the Board level and below. 37 8. Occupational Health and Safety

Health and safety are an integral part of 8.1. CIL Safety Policy CIL's approach to employee welfare and are aligned with its aim of 'Zero Harm Coal mining is susceptible to many Potential’ (ZHP). We uphold the highest occupational hazards and risk of injuries. health and safety standards of our Recognising these risks, CIL ensures that workforce. Sound occupational health and safety protocols are followed at all locations safety performance has a direct positive including mine areas, subsidiary impact on labour productivity. It also headquarters and CIL headquarters. Our enhances a company's reputation, improve safety policy can be accessed at staff morale and minimize costs related to (https://www.coalindia.in/departments/saf fines and other contingent liabilities. Our ety-rescue/safety-policy-cil/) robust management systems, particularly regarding health and safety related aspects, 8.2. Safety Enhancement Initiatives permit us to deliver high operational performance. This is primarily because our During 2019–20, CIL further enhanced its employees trust our health, safety protocols safety systems through introduction of and standards followed across our many new initiatives in addition to existing operations. internal safety standards and compliance of government rules and regulations. Some of For coal mining sector in India, there are the components of our safety initiatives are several statutory rules and regulations for as follows: ensuring occupational health and safety, which are to be mandatorily complied by all • Safety Management Plans (SMPs): Safety coal mine operators. Directorate General of related risk assessment is carried out at Mines Safety (DGMS) under the Union every site with regular reviews. SMPs are Ministry of Labour and Employment is implemented and monitored with the responsible for administering these help of ISO standards. statutes. Further details on OHS-related • Principal Hazards Management Plans regulations which apply to coal mining are (PHMPs): These plans are part of SMPs listed on page no. 71 of our Sustainability and specific to averting major mine Report disasters or accidents. (https://www.coalindia.in/media/document • Standard Operating Procedures (SOPs): s/Coal_India_Sustainability_FY2019- These are used as the basis for 20_ESG_Issues_Assured.pdf) . conducting site-specific risk assessment for all mining and allied operations. We have developed and implemented a • Safety Audit: CIL has undertaken safety comprehensive Safety Monitoring System audit through multi-disciplinary inter- (SMS) which has a detailed structure for area safety audit teams of respective assigning the responsibility of safety of subsidiaries for assessing safety status of employees at different levels. We routinely mines. Deficiencies identified and undergo safety audit through a third party pointed out during the safety audits are agency. For further details on description of subjected to rectification. the safety monitoring system, refer to Page- • Regular coordination with ISOs: Multiple 72 of our Sustainability Report meetings have been held under the (https://www.coalindia.in/media/document Chairmanship of the Director (Technical), s/Coal_India_Sustainability_FY2019- CIL for assessing the safety status of 20_ESG_Issues_Assured.pdf) . mines and other establishments for enhancing safety.

38 • Mine safety inspection: 24x7 supervision • Monitoring the mine environment for all mines by statutory supervisors and through a structured system is based on mine officials was undertaken in our detection of mine gases using multi-gas mines. In addition, surprise checks as detector, methanometer, etc., well as inspection by senior officials were installation of Environmental tele also carried out. Monitoring System (ETMS) and local methane detectors, regular mine air We follow specific steps for prevention of sampling and analysis using gas accidents: chromatograph, detection of dust concentration and air quality monitoring • Formulation and implementation of in large OCPs. mine-specific traffic rules • Conduct of Suraksha Choupal as a • Code of practice for HEMM operators, sensitisation programme through family maintenance staff and others counselling as part of an awareness • Sensitization training of contractors’ drive. workmen involved in contractual jobs • Training on mine safety including training • Lighting arrangement by using high mast on simulator for HEMM operators, skill tower provided for enhancement of upgradation of frontline mine workers, standard of illumination sensitisation of all employees relating to • Eco-friendly Surface Miners for blast-free safety issues and knowledge mining and avoidance of associated risks enhancement of mine executives and • Dumpers fitted with proximity warning special safety drives on varying health devices, rear view mirrors and camera, and safety topics. Installed a Universal Audio-Visual Alarm (AVA), Automatic Fire Equipment Simulator’ at Central Detection and Suppression System Excavation Training Institute (CETI) in (AFDSS), etc. NCL, Singrauli to impart simulation • Ergonomically designed seats and AC training to dragline, shovel and dozer cabins for operators’ comfort operators; simulator allows operators to • Indigenously built solar power-based hone their skills real-time dump monitoring device has been installed in OC mines of WCL; this • 10 executives had the opportunity of device is designed for giving early participating in the ‘Second Educational warning in case of movement in Training Programme on Coal Mine Safety overburden dumps. Management for CIL Executives and • Apart from system of wet drilling and Exposure to Best Practices in China’ for water sprinklers for dust suppression, 11 days in November 2019 at the School mist sprinklers and truck-mounted fog of Safety Science and Technology, Henan cannons are deployed in OC mines. Polytechnic University, Jiaozuo, Henan, • GPS-based operator truck dispatch China. system in large OCPs for tracking movement of HEMMs inside OC mines. Despite the best efforts to avert injuries at • Adoption of the state-of-the art our sites, there have been some unforeseen mechanism for strata management circumstances where few injuries and involves scientific determination of rock fatalities have occurred. The causes for mass rating (RMR), mechanized drilling these severe injuries and fatalities include for roof bolting, usage of resin capsules explosives, haulage, falling of persons and instead of cement capsules, adoption of falling of objects or ceiling. Table 8.1 shows modern strata management instruments, the details on the number and rate of introduction of a Strata Control Cell and severe injuries and fatalities. provision of training to crew and frontline mine officials.

39 All fatal accidents are investigated to and suggests other corrective measures. determine the causes resulting in the The mine Officer and mine manager are incidents. Further, the DGMS undertakes a stipulated to investigate the incidents and statutory inquiry for assigning the ensure that the future occurrence of responsibilities on health and safety matters accidents is minimized.

Table 8.1: Serious injuries and fatalities during last two years

Indicators 2019-20 2018-19

No. of Fatalities 29 46

Rate of fatality (Per mt of coal production) 0.048 0.075

Rate of fatality (Per 3 lac man shifts) 0.133 0.202

No. of Serious Injuries 90 96

Serious Injury rate (Per mt of coal production) 0.149 0.158

Serious Injury rate (Per 3 lac man shifts) 0.390 0.422

Accident Statistics

96 Serious Injuries (No.) 90

46 Fatalities (No.) 29

0 20 40 60 80 100 120

2018-19 2019-20

Fig. 8.1- Accident Statistics of 2018-19 & 2019-20

40 9. Human Rights

Respecting human rights is not only a concern for states and governments but 9.2. Initiatives to Integrate Human also for companies and organizations Rights in Our Business irrespective of the industry they are Our efforts include eliminating threats of operating in. We are sensitive to our adverse human rights impact of our responsibility in ensuring human rights products, services, strategy, operations in issues and giving priority in our operations. our engagements with employees, 9.1. Respecting Human Rights as an customers, communities, government, Employer business partners and suppliers. We host regular training and awareness meetings to We are committed to abide by all human apprise our employees of the available tools rights related regulations and recognize it as to operate consistently with our human a necessity to sustain our operations. All rights commitments. We also persistently suppliers, contractors and vendors engaged engage with external networks and experts by CIL to provide services of any kind must to inform our approach. Our human compulsorily sign a formal agreement that rights efforts are overseen by the corporate includes specific clauses for ensuring governance and policy committee of our compliance to all applicable labour laws and Board of Directors. Further to our efforts to regulations on human rights in their uphold our commitment to human rights we operations. Human rights guide our have conducted a comprehensive approach to the due diligence framework assessment to check compliance with outlined in the United Nations Guiding human rights norms and standards and Principles on Business and Human Rights. ascertain any kind of human rights Specific focus is given on identifying human violations across all our operational sites. rights risks across our operations, value We consider it essential to track and review chain and stakeholders through risk such circumstances and establish effective mapping exercises. These risks are response mechanisms and techniques that periodically reviewed to determine any new we may have unintentionally caused or potential issues. contributed to.

As per the Mines Act, 1952, employment of An essential part of our approach to children below 18 years in mines is monitor human rights compliance is the prohibited. We ensure compliance with system of public grievance redressal. This is respect to Payment of Wages Act, 1936, the a centralized web-based solution that allows Minimum Wages Act, 1948, Equal all our stakeholders including employees, Remuneration Act, 1976, Industrial Disputes contractors, suppliers, customers and others Act, 1947, Employees State Insurance Act, to lodge a complaint related to any 1948, Coal Mines Provident Fund and grievance. Grievances received through this Miscellaneous Provisions Act, 1948, Child portal are assessed by the Nodal Officer of Labour (Prohibition and Regulation) Act, CIL and sent to relevant redressal 1986 and the Contract Labour (Regulation departments. and Abolition) Act, 1970.

41 203 pending grievances were carried Similarly, ex-security serviceman's agencies forward from 2018–19. Additionally, 3898 are deployed in non-core areas such as new grievances were lodged during 2019– townships, HQs and offices duly sponsored 20. Of the total, 3954 have been resolved by the Directorate-General for while 168 cases were carried forward to the Resettlement, under the Ministry of next FY for resolution. Defense, following the standards laid down by the DPE. The Indian government gives 9.3. Ensuring Security training and refresher courses to these personnel on security systems and human At CIL ensuring security of the workforce is rights issues before their formal initiation our primary concern. We understand our into the service. Concrete steps are being responsibility to establish and maintain a taken to update monitoring systems on all secure working environment in all our projects/stations by adding state-of-the-art mines, concerning labour, data and monitoring systems. operations. This is achieved by deploying Central/State Industrial Security Force to CIL and its subsidiaries following the provisions of the Ministry of Home Affairs.

Fig. 9.1 – Fogging Machine in MCL Mine 42 10. Rehabilitation and Resettlement

CIL’s Land and Resources Policy ensures fair Our company and its subsidiaries are spread determination of compensation and across eight states of the country and compares with the best practices in vogue. amidst the challenges are meeting the The disclosure of the displacement eligibility energy requirement of the country with and entitlements are done as early as admirable tenacity. possible in project planning through regular camps by the officials from Land and We at CIL believe in mining responsibly and Resources Department. We have also over the years we have garnered the established a Project Rehabilitation confidence and goodwill of the project Committee for proper information affected persons (PAPs) following a dissemination on displacement eligibility philosophy of social economic development and entitlements. Fair determination of of the region and progressive rehabilitation compensation for land acquisition and other policies. assets is also ensured by company's Resettlement and Rehabilitation Policy, ‘CIL's Annuity Scheme 2020' attempts to which is framed as per the Government strike a judicious balance between meeting Approved Guidelines. This is achieved the organization’s business goals and through employment against land, cash ensuring a sustainable source of income to compensation against land value, shifting PAPs. This annuity scheme shall be allowances for rehab sites or lumpsum implemented in lieu of employment claim compensation. We have also included by the eligible affected family against land physical and economic displacement acquisition. All such entitled affected grievance mechanisms through Public Portal families may opt for annuity and forgo the established by subsidiaries where the PAPs job benefit or one-time monetary can redress their physical and economic compensation. This would be in lieu of displacement grievances. employment against acquired land by entering into an agreement with project The Relocation Plan also covers several authority. community engagement aspects, such as: The operational units of CIL are mostly in • Identifying affected communities and the remote locations where communities are range of stakeholders mostly tribal having their own respective • Implementing a Stakeholder Engagement sets of culture and tradition. Hence, the Plan rapport with communities is pre-established • Providing Affected Communities with considering them as part of the composite access to relevant information operational ecosystem of the company. • Enabling Affected Communities to express their views on operational and project risks, impacts and mitigation measures • Incorporating the views of Affected Communities into operational and project decision-making • Grievance mechanisms for Affected Communities • Reporting to Affected Communities and other stakeholders.

43 Fig 10.1: Saoner eco-park

10.1 Chhatenpali R & R Site of Siarmal Village

Fig 10.2: Bhoga Mandap and Pidha of Baulpur R & R Site of Bharatpur OCP

44 11. Community Engagement

11.1. CSR Activities

While producing 83% of nation’s coal that CIL embraces the peripheral community and generates 63% of thermal power is a matter disadvantaged sections of the society of honour for Coal India, the company takes through economic empowerment based on equal pride in being a conglomerate that capacity building. As per CSR policy, CIL's cares for community. objective is to make CSR a critical business process for society's sustainable Corporate Social Responsibility as an development. We aim to supplement the instrument of societal service assumes government's role in enhancing welfare greater importance in Coal India more than measures of community based on it does for any other Corporate. This is due immediate and long-term social and to its distinctive operational features. Unlike environmental consequences of their other industries mining establishments are activities. We aim to act as a good corporate constantly on the move. Land acquisition, citizen. displacement, rehabilitation and resettlement are an integral and unending Among CIL’s subsidiaries the focus of CSR process in coal mines. For this, CIL humanely operations is on areas that fall within a keeps on interacting with the surrounding radius of 25 km of project sites/ community who offer their land for the establishments. The projects are initiated cause of the nation’s energy needs. The based on extensive consultations with the company understands and internalizes the Project Affected Persons, Village sensitivity of Community vs Company committees, Panchayat members, Public interface in coal mining. The communities representatives and Government living around mines have heightened Authorities. In our efforts to enhance expectations from coal companies. To fulfill Community Engagement framework, we their needs, company looks at CSR as a have inducted a new cadre called national duty. We are there to quench the Community Development and recruited a thirst through our water supply schemes pool of executives having academic and we are there to heal the life through qualification in social and developmental our healthcare programmes. CSR is sector. INR 587.84 Crore has been spent by intricately woven into our fabric. We look at CIL and its subsidiary companies in various it as a serious endeavor. Company’s CSR activities from CSR Fund in FY 2019-20. programmes are outcome oriented and aligned with inclusive growth agenda. CIL aligns its activities in line with the United Nations Sustainable Development Goals The Company has a people friendly CSR (SDGs) of 2015. CIL’s Sustainability Policy Policy containing inter alia the guiding emphasizes Environmental, Economic and principles for selection, implementation and Socio-Cultural Sustainability. The monitoring of activities. The Company responsibility for enhancing efficiency in undertakes focused programmes under the sustainability dimensions is delegated to governance and expertise of its CSR corporate and concerned subsidiaries. Committee to empower communities These form the core areas for implementing becoming self-sustained by creating a the related SDGs projects to stimulate broad positive difference and adding value. dialogue and cooperation between stakeholders to make mining a driving force for sustainable development. CIL has three major CSR Priority areas, which align with multiple SDGs. The details are provided in the figure 11.1

45 • Handloom weaving training for over 60 women living in Mukunda organized in the peripheral region of Lodna Area in BCCL. A space has been allotted to them to set up a Handloom shop at Koyal Nagar Township, BCCL under Swawalamban Swarojgaar Yojna

Theme wise CSR Expenditure (Sch-VII) in Rs. Crore Clause Theme Amount

Healthcare, Sanitation, I 290.60 Drinking Water Fig 11.1: CSR priorities and aligned SDGs Education, Skill Development II Welfare of the differently 155.25 11.2. Major CSR Initiatives abled XII Disaster management 51.04 The major CSR initiatives undertaken by CIL during FY2019-20 are: X Rural development 42.25 • Restoration of damaged electricity lines VII Promotion of sports 23.62 in Odisha due to cyclone Fani. IV Environmental Sustainability 17.69 • Reconstruction of school buildings Others Other themes 7.39 damaged during the floods in Dharwad TOTAL 587.84 and Bagalkot districts of Karnataka 11.3. COVID-19 Relief Measures • Training of 2000 youth in various trades related to Plastic Engineering through Central Institute of Plastic Engineering a) Monetary Contribution: and Technology (CIPET). • Providing artificial limbs to 1250 • Monetary contribution to PM CARES persons in different parts of Karnataka, Fund, amounting to INR 221 Crore to Andhra Pradesh and Telangana. fight Covid 19 pandemic, including • Swachhta Pakhwada was observed employees’ contribution of one day’s during 16th to 30th June 2019. salary amounting INR 61 Crore. • Health Check Up camps to identify • CIL’s subsidiary company, NCL patients contributed INR 20 Crore to Madhya • Skill Development initiatives through Pradesh CM relief fund, SECL trainings Contributed INR 10 Crore to Chhattisgarh • Mobile Medical Van cum Ambulance State Disaster Management Authority, • Counselling session for students of CCL Supported INR 20 Crore to Kendriya Vidalaya, CWS and Higher Jharkhand State Disaster Management Secondary Schools at Jayant in Northern Authority, CIL supported INR 20 Crore to Coalfields Limited. West Bengal Disaster Management • Construction of a primary school Authority and WCL contributed INR 20 building at village Misira in Madhya Crore to Maharashtra State Disaster Pradesh to encourage education. Management Authority. • MCL signed an MoU with ‘Gram b) Social support: Samriddhi Trust’ to encourage organic • CIL and its subsidiaries have distributed farming among the rural population of 2.81 Lakh cooked food packets and 1.36 Hemgir block, Sundargarh District, Lakh packed rations to downtrodden and Odisha. This project is focused on needy during the lockdown period. improving food security for the rural • Food packets and drinking water were tribal communities in 10 villages of the provided to the migrant workers Hemgir block. Over 200 underprivileged travelling in Special trains during Covid- and SC and ST farmers will be benefitted 19 at Nagpur, Bilaspur, Ranchi, Sambalpur, Dhanbad, Varanasi, Singrauli by the Programme. 46 Railway Stations. • Full Payment of salary/ wages by the The policy acts as a strategic and guiding Contractors to their workers during tool for integrating business processes with lockdown. the social processes for the overall • Coronavirus Awareness Campaign development of the society. conducted in all subsidiaries especially for front line employees, housekeeping and We have a two-tier CSR committee: maintenance personnel. a) CSR committee comprising of below Board level executives for examination c) Medical support and recommendation of CSR projects and • Coal India’s 35 hospitals spread across b) A Board level committee on CSR and eight coal producing states set aside 1,234 Sustainable Development for further beds for corona cases. deliberation and approval of CSR • Central Hospital of BCCL in Dhanbad and projects/ recommending to the Board Central Hospital Gandhinagar & Regional of the Company. Hospital Ramgarh of CCL have been offered to the State Government of The CSR policy is available on: Jharkhand and converted into COVID https//www.coalindis.in/media/documents/ Hospitals. modified_CSR_Policy_of_CIL.pdf • A 50 bedded Hospital of SECL in Korba, Chhattisgarh has also been handed over to 11.5. Major CSR Ongoing Initiatives by the State Government of Chhattisgarh. CIL and its Constituent Companies • MCL has fully funded a State-of-the Art 500 bedded SUM Covid Hospital in CIL’s biggest initiatives come under the Bhubaneswar Odisha at a cost of INR 7.31 thematic area of Healthcare. Company Crore. provides financial assistance of up to INR 10 • SECL contributed INR 4 Crore for Lakhs for treatment of children suffering upgradation of District hospital Bilaspur to with thalassemia, belonging to financially 100 bedded exclusive COVID treatment underprivileged families, in eight leading center. hospitals to children. Launched in 2017-18, • SECL also contributed INR 4.19 Crore for assistance of INR 12 Crore has been given to upgradation of Government Medical 143 children till date. MCL has built a 100- College, Ambikapur for 100 bedded seat Medical College cum 500-bedded exclusive COVID treatment center. Hospital at Talcher (Odisha) at a cost of INR • Subsidiaries of CIL procured ventilators, 492 Crore. Besides, a 100 bedded Cardiac PPE suits, thermal scanners and oxygen Care Centre is coming up at Jharsuguda with cylinders to help fight covid pandemic. an investment of INR 75 Crore. Both these • CIL also introduced a policy to engage projects are expected to start in 2021-22. retired medical consultants/ paramedics Project ‘Phulwari’ by NCL aims to reduce on contractual basis, during the pandemic malnutrition in children in 75 villages of • CIL’s subsidiaries distributed 15.42 Lakh Singrauli district (MP). Project cost of INR masks and 63 thousand liters of hand 1.3 Crore has been utilized in providing sanitizer to its employees and people living nutritious diet to children over a period of around its operations. two years. • Since the pandemic is ongoing, the support by CIL and its subsidiaries towards its Major initiatives in sports include promoting control and relief shall continue during FY a sports academy at Ranchi by CCL, a 20-21. 10,000-capacity Stadium at Jharsuguda with 11.4. CSR Policy an outlay of INR 24 Crore and a INR 25 Crore multipurpose Sports Complex at Sambalpur We at CIL have an exclusive policy and by MCL. strategy for Corporate Social Responsibility that is aligned with the Companies Act 2013 CCL provides free coaching to students from and extant Rules and Government disadvantaged communities to enable them Guidelines. compete in professional competitive47 examinations under the scheme ‘CCL Ke Lal’. With a holistic view of socio-economic To provide the communities with access to mainstreaming of backward areas, coal relevant information, RTI queries are companies are contributing their CSR funds promptly replied and disclosure of CSR in the Central Government scheme of budget and Expenditure (along with details Development in districts in West Bengal, of location, area, beneficiaries etc) is Jharkhand, Uttar Pradesh, Madhya Pradesh, incorporated in our Annual Report, as per Chhattisgarh, Maharashtra and Odisha. Company's Act. We also enable people from These projects are implemented in affected communities to express their views consultation with the DM of the concerned on operations, project risks, impacts and District. Majority of interventions are in mitigation measures through village education and health sectors which are the meetings and stakeholder meets, which are basic requirements of these areas. conducted at regular intervals in operating units. The views expressed by affected Rural development is another vertical where communities are incorporated into our many high-impact projects are being operational decision-making by developing implemented in the recent times. MCL, in its annual CSR Action Plan in consultation with command area, is implementing projects communities in all subsidiaries. like development of Anganwadis, Aahar Mandal (promotion of low-cost, perennial, Further, grievance mechanisms for people nutrition-based farming in tribal areas) from affected communities are addressed benefitting 200 marginalized farmers, through portals like CPGRAMS. Utthan,(Quality of life project for 6,000 Additionally, Grievance Redressal meets are tribal households) encompassing organized regularly by some of our development of livestock, Wadi-improved subsidiaries like Janta Darbar and agriculture, rural piped water supply Samadhan Cell. projects worth INR 126 Crore with 3.5 Lakh potential beneficiaries, tanker water supply We understand the local issues by engaging covering 100 peripheral settlements and with indigenous people from different areas Poultry project benefitting tribal women. through village meetings, interaction with SHGs and celebrating important cultural Two of the subsidiary companies of Coal festivities of the community. Activities India, Central Coalfields Limited and related to cultural preservation is listed Mahanadi Coalfields Limited were conferred under Schedule VII of CSR Rules and is National CSR Award by Hon'ble President of undertaken as part of CSR activities. As a India for contribution to National Priority principle of promoting good relationships Areas. CCL got the award for promotion of with local populace, CIL’s priority for CSR sports and MCL for health, safe drinking activities are PAPs in and around the mining water and sanitation. areas. Our Mine operators at ground zero regularly engage with them through village meetings, choupal interactions and focused group discussions. 11.6.Community Engagement and Information Sharing Framework For CIL HQ, CSR activities are implemented through various implementing agencies. Identifying the affected communities and There is a window of alternative/ indirect the range of stakeholders impacted by our employment for youth from peripheral business operations, our CSR Policy, areas who do not qualify for regular determines the percentage allocation of CSR employment. They are employed with the budget as per the operational boundaries of outsourcing firms engaged in mining the Company. operations of coal/ overburden removal, transportation and allied activities. An Annual Action Plan is prepared in a way that different sectors of development are given due proportion and weightage as per the needs and priorities of the community and Government Directives. 48 Fig 11.2: Medical College Hospital in Talcher, MCL

Fig 11.3: Social Forestry

49 Fig 11.4: Health checkup camps

Fig 11.5: Wheelchair donation drive

50 Fig 11.6: Commissioned a mobile medical van cum ambulance

Fig 11.7: Cleanliness drive

51 12. Governance

We have an efficient, open, accountable Government nominee Directors management system to adopt ‘best in class’ representing Ministry of Coal retire from corporate governance and business the Board on ceasing to be officials of the management standards. We are fully Ministry. GoI appoints Independent compliant to laws of the land and relevant Directors. Non-executive Independent legislation. We strive to lead by example in Directors fulfil the conditions of terms of our professional competence, independence specified in Section 149 of openness, transparency and effective the Companies Act, 2013 and Regulation management. Our governance strategy (16 b) of Listing Regulations, 2015. addresses the interests of our various stakeholders. 12.4. Committees of the Board of Directors 12.1. Size of the Board Our Board had constituted following Committees: We are a government company (as described in section 2, sub-section 45 of the • Audit Committee Companies Act, 2013) and the President of • Nomination and Remuneration India, appoints Functional Directors of our Committee company and nominates a Chairman cum • Stakeholder Relationship Committee Managing Director (CMD). • Share Transfer Committee 12.2. Composition of the Board • Risk Management Committee • Corporate Social Responsibility (CSR) As of 31st March 2020, our Board of Committee Directors comprised one CMD, four • Empowered Sub-Committee for Functional Directors, two Non-Executive Evaluation, Appraisal and Approval of Directors (all nominated by the GoI) and two Projects Independent Directors. • Empowered Sub-Committee for Purchase and Contracts 12.3.Age Limit and Tenure of Directors • Mine Developer & Operator Committee • Independent Director Committee The age limit of CMD and other full-time Functional Directors is 60 years. The CMD As stipulated by LODR 2015, a list of core and other full-time Functional Directors are skills of expertise of the Board of Directors appointed for five years from the date of is required for effective functioning of the assumption of charge or till date of business. Our Board of Directors have the superannuation of incumbent or till further required skill set under the broad orders from GoI whichever is earlier. None classification as executive leadership, of the Directors on the Board hold governance experience, financial acumen, Directorship in more than 10 public sectoral/domain knowledge, marketing companies. In addition, none of them is a knowledge, human resource management, member of more than seven committees or project management, strategy/risk Chairman of more than five committees of management, occupational health, safety all public corporations where he or she is a and environment. Director.

As of 31st March 2020, the Directors have made necessary disclosures regarding their committee positions in other public companies.

52 CMD

Project Formulation and Management

Director (P & IR)

53 accordance with the Framework and is 12.5. Composition of the Audit Committee communicated by Board to the Ministry as In its pursuit of corporate governance well. The Framework is available on excellence CIL has formed an Audit https://www.coalindia.in/media/documents Committee of its Board of Directors /Final version Framework for performance effective 20th July 2001 and the existing evaluation CIL clean 12.03.2019.pdf Audit Committee was reconstituted by the Board in its 395th meeting held on 25th 12.8. Capacity Building of the Board November 2019 consisting of two The Board is fully briefed on all business- Independent Directors, one Government related matters, associated risks, new Nominee Director, one Invitee Director and initiatives of the Company. The Board is also one Permanent Invitee Director. The briefed on the provisions of Companies Act composition, quorum, powers, role and 2013, SEBI (LODR) Regulations, 2015 and scope are in accordance with Section 177 Prevention of Insider Trading Code of CIL of the Companies Act, 2013 and provisions etc. As and when training programmes are of Regulation - 18 of SEBI (LODR) 2015. conducted by recognized institutes on Director (Finance), G.M. (Internal Audit) corporate governance, the Company and Statutory Auditors are invited to sponsors the Board members to attend the the Audit Committee meeting. The training programmes to make them Company Secretary is also the Secretary to familiarize with recent developments. the Committee as required by Regulation 18 Details of training programmes attended by (1)(e) of the Listing Regulations. Senior Independent Directors are disclosed on our Functional executives are also invited as and company’s website. when required to provide necessary clarification to the Committee. The Internal In the annual plan, preparation and Audit Department provides necessary knowledge topics to be addressed at each support for organizing Audit Committee meeting are defined. Specific industry meetings. specialists in which CIL has key interests 12.6. Board Meetings make their presentation to Board. The presentations also include details of visits to During 2019–20, a total of 19 Board services, clients and strategic works along meetings were held. For further details, with a prepared curriculum for the refer to page no. 165 of our Annual Report executives of the Board. (https://www.coalindia.in/media/document s/Coal_India_English__final.pdf) 12.9. Nomination and Remuneration Committee 12.7. Performance Evaluation CIL being a Central Public Sector Framework for Board of Directors Undertaking, the appointment, tenure and The Board has adopted the Board remuneration of its Functional Directors is Evaluation Framework (‘the Framework’) as decided by the GoI. CIL’s first Remuneration per various provisions of the SEBI Listing Committee was constituted by the Board Obligations and Disclosure Requirements of Directors in its 249th meeting held on Regulations, 2015 (‘the Listing Regulations’) 10th April 2009. However, in compliance and Companies Act, 2013 (‘the Act’). The with Section 178 of the Companies Act, administration of CIL is under the Ministry 2013, the Board has renamed the of Coal, as it is a government company. The Remuneration Committee as Nomination Ministry reviews the performance of the and Remuneration Committee in its 303rd Directors on completion of the first year of meeting held on 14th July 2014. This their appointment in order to decide on committee was reconstituted in its 376th their continuance or otherwise for the meeting held on 30th November 2018, balance period of the tenure. The performance evaluation is done in 54 comprising of five Independent Directors, one Government Nominee and one 12.11. Financial Reporting Functional Director as permanent invitee. We, at CIL, publicly report on key business, The Committee was further reconstituted in financial and tax-related information for th th the 395 Board meeting held on 25 regions and subsidiaries on an annual basis. November 2019. It was subsequently The information is provided in the Annual th reconstituted in the 396 Board meeting Report and can be found on th held on 19 December 2019, comprising https://www.coalindia.in/media/documents two Independent Directors, one /Coal_India_English__final.pdf Government Nominee Director and one permanent Invitee. The Composition of Nomination and Remuneration Committee is pursuant to the provisions of Section 178 of the Companies Act, 2013 and Regulation 19 of SEBI LODR 2015. During 2019–20, seven Sub-Committee meetings were held, each on 19th June 2019, 3rd July 2019, 30th September 2019, 28 October 2019, 2nd December 2019, 16th January 2020 and 18th March 2020. For further details, refer to page no. 170 of our Annual Report (https://www.coalindia.in/media/document s/Coal_India_English__final.pdf). 12.10. Compensation of Directors The compensation of Functional Directors is defined by the GoI. The Board of Directors of CIL fixes the sitting fee payable to Independent Directors in pursuance of the DPE guidelines and Companies Act, 2013. Accordingly, the Board had decided the payment of sitting fees for each meeting of the Board and Committee of the Board at INR 40,000 and INR 30,000 respectively, to each Independent Director in its 327th meeting held on 28th May 2016. The details of the compensation paid to Functional Directors of the Company during financial Year 2019–20 could be referred at page 170 of CIL’s Annual Report (https://www.coalindia.in/media/document s/Coal_India_English__final.pdf)

The Non-Executive Independent Directors do not have any material financial relationship or transactions with the Company. For further details, refer to page no. 170 of CIL’s Annual Report (https://www.coalindia.in/media/document s/Coal_India_English__final.pdf)

55 13. Materiality and Stakeholder Engagement

external stakeholders’ expectations and 13.1. Our Material Issues identify issues that impact them. In CIL’s ESG strategy is shaped by material addition, guidance from top management at priorities that can impact the company’s CIL helps determine material aspects long-term success as well as ability to create aligned with Company’s overall business and preserve economic, environmental and goals and objectives. This exercise is social values. complemented by an annual review of key risks and opportunities for CIL, emerging We conduct a comprehensive materiality global trends in the sector and leading assessment exercise to evaluate and industry practices. prioritize our material issues. The assessment is undertaken in accordance The identified material issues are with GRI Standards. The process is centered subsequently mapped on a matrix to at intersection of organizational relevance prioritize the economic, environmental and and stakeholder priority. Insights from social topics, based on their significance to ongoing stakeholder engagement at CIL are both stakeholders and organization. The leveraged to gauge the views and materiality map helps facilitate informed perceptions of various stakeholders. A decision-making in our efforts to integrate stakeholder survey is also undertaken to sustainability within business strategy. effectively capture our key internal and

Our Material Topics

Environment Community Employee Operational Stewardship Stewardship Stewardship Excellence Energy & Climate Local Community Health & Safety Regulatory Compliance Change Development Water & Wastewater Community Talent Attraction & Business Ethics & Management Engagement & Human Retention Transparency Rights Waste Management Diversity & Equal Product Quality Opportunities Biodiversity & Land Employee Learning & Business Model Management Development Resilience Air Quality Responsible Supply Chain

56 Figure 13.1.: Material topics The material issues are further assessed issues on our business performance in terms to identify high-priority aspects that have of revenue generation, cost efficiency and significant potential to impact our risk management. These issues form our business and require greater intervention. strategic ESG objectives, which are We assess the impact of these material monitored through long-term targets.

Table 13.1.: Material issues and progress

Business Material Topic Description Impact

Environmental Stewardship

Achieving energy efficiency and reducing our carbon Energy & Climate footprint; identification and management of climate Change related risks Water Use and Improving water use efficiency to address water scarcity; Management wastewater treatment and reuse Waste & Hazardous Managing solid waste including safe treatment Materials and disposal; overburden waste management Management

Protecting biodiversity ; reducing impact of Biodiversity & Land operations on landscapes; restoration of ecosystems; Management land reclamation

Community & Employee Stewardship

Corporate social responsibility; promoting education, Local Community good health, skill development and local employment Development opportunities

Community Minimizing impact of operations on communities; Engagement & Rehabilitation and Resettlement; protecting human Human Rights rights of employees, contractors and communities

Promoting health and safety of employees, Health & Safety contractors, transporters and communities

Employee Diversity & Promoting gender diversity and equal opportunities Inclusion

Operational Excellence

Business Ethics & Ensuring anti-corruption and anti-bribery and highest Transparency degree of ethical business practices

Mechanization of Keeping pace with latest technological Mines advancements in the sector through innovation

Cost Efficiency Revenue Generation Risk Management

57 Stakeholder Engagement CIL understands that stakeholder stakeholders, which includes identifying key engagement helps in continuous business focus areas and developing strategies to improvement and strengthens relationship address them. with them. Our mission is to create value We maintain a transparent and constructive for all our stakeholders by understanding interaction with all our stakeholders who and addressing their concerns, as well as play a vital role in our sustainable growth. fulfilling their needs to the extent possible. As a result, we have a structured Our stakeholders are identified and stakeholder engagement framework for prioritized based on specific criteria, which engaging with different are mentioned in next page.

Identification of risk and Development and Analyse the outcome of concerns during stakeholder enablement of strategies by stakeholder engagement engagement CIL to address key issues process to identify and prioritise material aspects

Figure 13.2: Stakeholder Engagement Process

58 • Stakeholders who are affected During our interaction with stakeholders (positively and negatively) by the some of the key areas of interest identified activities of CIL either directly or were customers’ satisfaction, quality of indirectly; product, brand of the company, business performance, wages and welfare etc. Table • Stakeholders of CIL’s competitors; and 13.2 provides a holistic view of our different categories of stakeholders along with the • Stakeholders identified by senior mode of interaction for each stakeholder leadership from various functional areas group and the level of interaction to address their main areas of interest.

Suppliers/ Contractors

Figure 13.3: Stakeholders of Coal India Limited

59 Table 13.2: Mode of engagement and key interests of our stakeholders

Stakeholder Mode of Engagement Frequency Key areas of interest

Rehabilitation and Resettlement (R&R)/Environmental clearance, Forest land clearance

60 14. Risk and Crisis Management

CIL has a robust risk management system in Inputs from Steering Committee under the place consisting of (i) a mechanism for leadership of ERM Core Group are defining, prioritizing and formulating considered for the purpose. The execution contingency strategies for risks and (ii) a of governance mechanism envisaged in risk framework for functions, duties of various management system, including facilitating authorities, committees and the Board for development of risk reduction strategies for executing risk management procedures, defined priority threats, is supervised by monitoring periodicity (Risk Management Chief Risk Officer (CRO) and his team under Calendar) and associated models & lackeys. the leadership of CIL RMC. New risks are being identified and incorporated for As part of CIL’s risk management system, evaluation as per direction of the CIL’s RMC. risk owners & their mitigation plan owners Figure 14.1 shows pictorial representation have been established for each risk and of various roles and responsibilities involved associated mitigation strategy to ensure in Risk Management Framework consistent risk monitoring and mitigation. The Risk Management Committee (RMC) a We have a comprehensive crisis Sub-Committee of the Board of Directors management plan which ensures that mine was formed in accordance with the rescue and recovery activities are Securities and Exchange Board of India (SEBI) conducted safely while providing protection (LODR) Regulations, 2015. This committee to personnel involved in rescue and evaluates the risk management process and recovery, rescue of survivors and recovery assess progress of perceived threats, of victims. We maintain a well-established including new market issues at periodic Rescue Organization at strategic locations intervals. The Chief Risk Officer (CRO) and spread across different subsidiaries to cater his team periodically meets with both to emergencies on 24X7 basis. We conduct business and functional departments to mock rehearsals for examining efficacy of oversee the implementation plan and emergency action plan on periodic basis. conduct brainstorming sessions to identify new business opportunities.

Board of Directors Overseeing the development of a suitable framework

Risk Management Providing direction and evaluating the effectiveness of the Risk Management Committee (RMC) Framework

Evaluating compliance in relation to control mitigation plan and timeline and reporting to the RMC on efficacy of Risk Management Framework (RMF). Chief Risk Officer Initiating and coordinating activities for operationalising the RMF and reporting (CRO) to RMC. CRO should liaise with CROs of subsidiaries for status update on RMF for consolidation and presentation

Implementation on Risk Management Framework in their operational area and reporting on the progress through: Functional HODs/Executive Risk Owners: Identifying gaps in existing mitigation strategies and drawing out61 In-Charge corresponding improvement plans with accountability and timelines. Mitigation Owners: Designing/ documenting mitigation strategies for RTMs and ensuring effective implementation

Figure 14.1: Risk Management Framework Our Enterprise Risk Management (ERM) 14.3. Climate risk assessment serves the twin purpose of minimizing adverse impacts and leveraging market We operate in remote regions that are opportunities effectively and efficiently to vulnerable to climate change and fragile sustain and enhance our competitive environment. Our extensive product advantage. transportation network and complex supply chain are located in these regions. This As a first step, CIL has identified significant particularly exposes us to climate change risks facing its business and categorized risks and we have assessed its impact on them as emerging risks and strategic risks. our operations. Potential impacts of each of these risks on the company’s operations are assessed and At CIL, we have specific measures for accordingly a mitigation plan is devised. dealing with climate related risks and their potential impact. As part of our climate risk management strategy, we have evaluated 14.1. Emerging risks risks, identified their effects and laid out a We have identified three major emerging mitigation strategy for dealing with each of risks that include (i) technological these risks (Refer to Annexure for further transformation (ii) changes in the traditional details). business models and current portfolio (iii) restrictions on access to capital for industries with intensive green house emissions. We have assessed the impacts of these risks and developed a mitigation plan (Refer to annexures for details).

14.2. Strategic risks We have identified two major strategic risks that include (i) effect on share price due to media impact (ii) lack of necessary key skills due to lack or inadequate management of good practices towards attracting, retaining and developing talent. that may have significant impact on our business. (Refer to annexures for details).

Key identified risks are summarized below:

1. Evacuation challenges for coal off-take 2. Operational safety risks arising out of mining operations 3. Technology upgradation and equipment utilization 4. Risk of unviable underground mining operations 5. Credit risk of receivables disputed/ undisputed receivables from PSUs 6. Competition risk from commercial mining renewables 7. Default risk by subsidiaries for redeemable preference shares

62 15. Ethical Business Practices

15.1. Code of Business Conduct Additionally, we integrate and include ESG practices in our supply chain, making the We have an established ‘Code of Business procurement process ethical, efficient, Conduct’ applicable to all employees of the transparent and free of corrupt practices company starting from Board level and during supplier selection and retention downwards. Our code of business conduct processes. sets the principles that enhance the ethical and transparent process in managing the Our purchase manual be accessed at: company’s affairs. We have http://archive.coalindia.in/DesktopModules institutionalized strong internal procedures /DocumentList/documents/Purchase(1).pdf to contain and curb corrupt practices in company’s operations. Our code of 15.3. Code of Integrity for Public business conduct can be accessed at: Procurement https://www.coalindia.in/media/document Purchasing agencies, bidders, vendors, s/CODE-PIT-COAL-FINAL.pdf contractors and consultants are obligated under the Code of Integrity for Public 15.2. Supplier Code of Conduct Procurement.(CIPP) to proactively report any preexisting or future conflicts of interest According to CIL's Procurement Policy, open in any procurement or contract execution tendering process is implemented for all process. According to the code, a bidder procurements. We integrate ESG aspects must have to declare any prior infringement such as labour conditions, health and safety of the CIPP with any entity in any country in our procurement decisions. Our during the last three years or if being procurement team works ethically and debarred by any other procuring entity. maintains strong internal control Failure to do so by any party is considered a procedures to enforce guidelines. violation of this code.

Fig. 15.1- “Go green” initiative 63 16. Data and Information Security

Information technology (IT) is one of the • IT services policy and guidelines: This most critical enablers of our business and framework regulates the usage of IT provides new advantages to business resources from an end-user viewpoint. operations. IT processes can be used as a • Guidelines facilitate compliance by tool for transforming business processes offering best practices for laptops, that cross several functionalities and handheld devices, external storage interconnect various business components. media and peripheral devices such as printers and scanners. In view of IT growth in our organization, • Email Policy: This regulates use of email providing right focus for creating a secure services offered to our staff, preventing computing environment, adequate trust and data breaches through cyber and confidence in electronic transactions, phishing attacks. software, services, devices and networks • Password Policy: This policy intends to has assumed a compelling priority. set a standard for good password formation, password protection and 16.1. Cyber security governance and password change frequency. This security measures guarantees our workers' privacy, safety and cyber security. CIL provides IT resources to its employees to • Open-Source Software (OSS) enhance their efficiency and productivity. Implementation Policy: This policy These resources are meant to be tools to facilitates systematic adoption and usage access and process information related to of OSS in CIL and subsidiaries. their areas of work. These resources help • Server backup policy: This policy aims at officials to remain well informed and carry having a clear backup management rules out their functions efficiently and to ensure backups are accessible when effectively. required. • Additional components covered in the CIL has a robust comprehensive policy to policy are DC/DRC (Data Centre/Disaster ensure cyber security which aims to protect Recovery Centre) requirements: All data information and information infrastructure centers that are built/upgraded adhere from cyber incidents through a combination to guidelines of Government of India for of processes, guidelines, technology and data centers. Appropriate levels of data cooperation. All components of the policy redundancy are built into all systems meet the guidelines of Government of India. with active mode disaster recovery Additionally, we have business contingency center for business-critical plans and incident response procedures in applications. place which are tested half yearly. The IT • Document Digitization: All extant digital policy for CIL and subsidiaries is available at initiatives such as e-office, email, Jeevan https://www.coalindia.in/media/documents Praman for life certificate, internal /1595245392_Approved_IT_Policy_CIL_and application for document digitization are _Subsidiaries.pdf implemented • Document management systems are in The following policies and guidelines cover place in CIL and subsidiaries. CIL and subsidiaries: • Preparation of salary from biometric attendance: This has been implemented to ensure an accurate and digitized process for calculating employee

64 threat and can lead to a compromise of remuneration based on employee a system under intimation to the attendance. Implementing authority. • Centralised Inventory of IT Assets: Centralised inventory of IT assets is being • Any security incident noticed is worked to create transparency and track immediately brought to the notice of real-time progress. Indian Computer Emergency • Bill Tracking: All transparency related Response Team (ICERT) and policies declared by us at CIL are Implementing Department. incorporated within the IT systems. Our policy ensures addressal of CIL has a System Department which is governance issues related to cyber primarily responsible for planning, security and enhances data protection coordinating and directing all computer and privacy from cyber attacks. related activities within the organization. The System Department helps in Furthermore, Coal India has established determining our company’s information DC/ DRC (Data Center and Disaster technology goals and is responsible for Recovery Centre) for ERP implementing computer systems to meet implementation at MeitY empaneled those goals. Data Center which adheres to the Guidelines of Government of India for We have also implemented policies and Data Centers. Security system of data procedures for all employees to ensure center is audited by STQC and it is compliance and data protection from equipped with state-of-the-art security cyber attacks. This policy is available in the devices including DDoS, WAF and Next public domain on our website to provide Generation Firewall. ERP production awareness and adherence to the policy's landscapes are considered with laid out guidelines. dedicated for high availability. IT Security Standards Policy and To ensure compliance with our policy, Framework designed for addressing the awareness emails are sent to all employees unique requirements of Coal India. at regular intervals. Additionally, any suspicious incidents are reported as soon as possible to the Implementing Authorities of each Department within our company.

16.2. Process, Infrastructure and Policies on Risk Assessment. CIL has implemented a Security Incident Management Process which has three steps:

• A security incident is deﬁned as any adverse event that can impact availability, integrity, conﬁdentiality and authority of data owned by Coal India and Subsidiaries.

• The implementing Department reserves the right to deactivate/remove any device from the network if it is deemed as a

65 Annexure: Risks that Matter (1/4)

S.No. Risk Risk Category Mitigation Plan

As part of the mitigation action, CIL has planned the following: Credit risk of (i) setting up common guidelines for all the receivables subsidiaries, so that receivables with similar root (disputed and 1 Financial causes are not repeatedly disputed by undisputed customers receivables) from (ii) notifying a common template for PSUs reconciliation with customers for mandatory prospective use by all subsidiaries

The mitigation approach to address this risk includes: (i) accepting a roll over of investments (ii) based on evaluation of cash flow analysis, issuing fresh redeemable preference share Default risk by capital, which represents the value of the subsidiaries for existing investments and any accrued 2 Financial redeemable interest/dividend thereon, for such period as preference shares shall be deemed appropriate (iii) measures to improve operational efficiencies and reduce operational losses, particularly from underground mining operations, as elucidated in subsequent mitigation plans, would also hold relevance

Under this risk, CIL and subsidiaries consider case by case feasibility for: (i) setting up centralized coal handling hubs to cater multiple sidings through conveyors (ii) using belt conveyors, wherever feasible, for Evacuation coal transportation from 50 km of the mines, 3 challenges for Operations (iii) expediting first-mile rail connectivity projects coal off-take (iv) emphasising the usage of high capacity dump trucks depending on available road infrastructure to improve further evacuation (v) forming SPVs with the relevant State Governments and Railways

66 Annexure: Risks that Matter (2/4)

S.No. Risk Risk Category Mitigation Plan

As a first step to mitigate safety risks, each subsidiary formulates a time-bound plan to implement mine safety framework, as applicable to high-risk mines. Operational Thereafter, an action plan is presented to CIL for safety risks supervisory monitoring. 4 arising out of Operations In addition to existing Safety Manual and guidelines mining of DGMS, a framework for improving the safety in operations operations for both Open Cast and Underground Mines, specific to the mining technology in use, has been developed.

CIL dedicatedly focuses on R&D activities and monitors any new technology development in mining sector. Several initiatives for technology development have been undertaken, including the introduction of high capacity equipment, operator Independent Technology Truck Dispatch Systems, vehicle tracking system using upgradation GPS/GPRS, CHP & Silos for faster loading and laser 5 Operations and equipment scanner monitoring. Underground mass production utilisation technology have also been introduced at selected places by deploying Continuous Miners and Longwall mining. Man riding systems in underground mines and the use of tele monitoring techniques continue to receive priority to increase production from underground mines.

A broad mitigation action plan for this risk involves a case by case evaluation of each specific mine by each subsidiary company. Some of the relevant considerations for the Subsidiaries involve the following: 1. Optimum scale of production from a district 2. Optimum size of the mine [number of districts/ Risk of volumes of production], consistent with investment unviable 3. Identifying surplus manpower [severance/ 6 underground Operations redeployment/ other options] mining 4. Developing normative costs for each loss-making operations unit 5. Reduction of Area Overheads & avoidable expenditure 6. Workload for time rated workers is considered. Currently, NCWA specified workload for piece rated workers (such as coal loaders) are in practice. 7. Cost Sheet modifications for cost control 8. Concentrate on marginally loss making mines.

67 Annexure: Risks that Matter (3/4)

S.No. Risk Risk Category Mitigation Plan CIL has developed several medium to long term mitigation plans for addressing the risk of competition. Some of our considerations in these plans include: (i) Formulating a domestic coal price index (ii) Establishing an online platform for coal trading/transactions for spot/forward auction of coal by Subsidiaries (iii) Taking steps for cost reduction by reducing Competition risk & rationalizing total manpower: from commercial (a) reducing the number of labour intensive 7 Strategic mining & mines renewables (b) periodic review of the R & R policy (iv) Enabling use of up to 100 MT of coal by 2030 under PPP/Private mode by converting coal into methanol, fertilizer through gasification technology (v) Creating a joint forum of key power developers and coal mining companies to undertake investment in R & D for Carbon Capture and Sequestration (CCS) and coal washing technologies in India

Restrictions on access to capital CIL has actively included Environmental, Social for industries with and Corporate governance (ESG) criteria in 8 intensive Strategic business value chain, this helps in preventing greenhouse gas and mitigating this risk emissions

68 Annexure: Risks that Matter (4/4)

S.No. Risk Risk Category Mitigation Plan

Review and update the sectoral dynamics and megatrends that could affect CIL performance. Changes in Additionally, strengthening of areas of traditional innovation and development of new businesses business models is promoted and current portfolio with Promotion of initiatives to develop new 9 Strategic emergence of products and production techniques solar and other similar As a measure to mitigate this risk we are technologies strategically diversifying our operations. CIL is venturing to set up solar power generation projects of 3,000 MW capacity by FY’24

To mitigate this risk CIL has been actively focusing on the following initiatives:

Implementing the Code of Conduct, risk management framework, safe mining framework among other business best practices such as a responsible expansion plan and Effect on share rehabilitation of land price due to 10. Strategic public perception Implementing a strong R& R plan by engaging of fossil fuel with stakeholders, analysis of material topics and developing a plan of periodic action

Ongoing strengthening of internal control system and the crisis management plans Identification of events that could affect CIL’s reputation in order to establish and monitor mitigation plans

69 Annexure: Climate Risks

Extent of S.No. Risk Impact Mitigation Plan Financial Impact

Promoting resource Climate pricing (carbon conservation: Reducing tax/emission trading) new resource inputs by will be extended mostly sales of recycled machines Carbon taxes on commodity and utilization of recycled and emissions producers with high materials trading GHG emissions and the 1. Promoting supplier Medium systems premium will be passed supporting activities: applied to on to raw products and Actively supporting suppliers the cost of suppliers' decarbonization procurement will rise. activities and addressing the risk of procurement cost increase

Owing to the advanced criteria for meeting Response to 1.5°C goal and accelerated achieving RE100, extra Promoting decarbonizing transition to expenses are incurred initiatives: Active decarbonized for introducing 2. promotion of energy Low society by initiatives such as savings and renewable consumers expenditure in energy energy initiatives and investors saving/renewable energy installations and converting to renewable energy. Strengthening business Due to climate change, continuity plans for extreme weather has flooding, heavy rain and become more severe, typhoons: Disaster causing more wind and Rapid increase counter measures at flood damage than 3. of natural production sites Medium expected: Production disasters Formulation of business stops and sales continuity plans for opportunity losses due procurement/distribution to disruption of the systems supply chain, etc.

Impact on production plans due to parts Regional supply disruption epidemics of Insufficient inventory Strengthening business 4. Medium infectious due to lower operating continuity plans diseases rates at production sites