Coal India

Coal India Limited (CIL)
कोल इंडिया लिमिटेड (सीआईएल)
State-owned enterprise
Public company
Traded as BSE: 533278
NSE: COALINDIA
BSE SENSEX Constituent
CNX Nifty Constituent
Industry Metals and Mining
Founded 1975
Headquarters Kolkata, West Bengal, India
Area served
 India
Key people
 Sutirtha Bhattacharya
(Chairman & MD)[1]
Products Coal, Bituminous
Revenue Increase ₹806.91 billion (US$12 billion)
(2014–15)[2]
Increase ₹215.83 billion (US$3.2 billion)
(2014–15)[2]
Profit Increase ₹137.27 billion (US$2.0 billion)
(2014–15)[2]
Total assets Increase ₹1024.5 billion (US$15 billion)
(Mar 2015)[2]
Total equity Increase ₹403.53 billion (US$5.9 billion)
(Mar 2015)[2]
Owner Government of India (79.65%)
Number of employees
 333,097 (1st April-2015)[2]
Slogan "We Survive if Nature Lives"
Website www.coalindia.in

Coal India Limited (CIL) is an Indian state-controlled coal mining company headquartered in Kolkata, West Bengal, India. It is the largest coal producer company in the world[3][4] and contributes around 82% [5] of the coal production in India. It produced 494.24 Million tonnes of coal during FY 2014–15[1][6] and earned a revenue of INR 954.35 billion[7] from sale of coal in the same financial year.[1][8] As on 14 October 2015,[9] Union Government of India owns 79.65% of the shares in CIL [10] and controls the operations of CIL through Ministry of Coal.[3] In April 2011, CIL was conferred the Maharatna status by the Union Government of India.[11][12] As on 14 October 2015, its market capitalisation was INR 2.11 trillion (US $32.59 billion) making it India's 8th most valuable company by market value.[13][14][15]

History

To take care of energy requirements of India, the Central Government of India did a nationalisation of coal industry in the 1970s. By 1972, it acquired most of the coking coal mines in India (226 coking coal mines) through Bharat Coking Coal Limited (BCCL). Similarly, it acquired all 711 non-coking coal mines in India through Coal Mines Authority Limited (CMAL). To consolidate the businesses of both coking and non-coking coal under one entity, a formal holding company in the form of Coal India Limited was formed in November 1975 to manage both the companies.[16] Government of India held 100% of its shares from 1975 till 2010.

Initial Public Offer (IPO): In October 2010, Government of India offered 10% of the equity shares of CIL (631.6 million equity shares) to public for sale at an offer price of INR 245 per share (at face value of INR 10 per share).[17] The IPO got over-subscribed by 14.17 times.[17] Against an IPO issue size of INR 155 billion (USD 3.5 billion) it received bids for INR 2400 billion crores (USD 53 billion) making it the second highest collections in any IPO in India.[18] On the first day of its listing on the stock market, its shares soared 40% higher than IPO price.[19][20] With the listing, CIL become the fourth most valued company on the Indian stock exchanges with a market value of INR 2.16 trillion.[19]
CIL was included in the 30-member BSE SENSEX on 8 August 2011. On 17 August 2011, it became the most valuable company in India, with a market capitalisation of INR 2.51 trillion.[21]

On 30 January 2015, in an Offer For Sale (OFS), Government of India sold a further 10% stake in CIL. Priced at INR 358 per share, the sale fetched the government INR 225.5763 billion, making it the largest ever equity offering in the Indian share market.[22]

Operations

CIL is the largest coal producing company in the world. It produced 494.24 MT (million tonne) coal during FY 2014-15. Coal India operates through 81 mining areas in eight states in India. As on 1 April 2015, It has 430 coal mines out of which 175 are open cast, 227 are underground and 28 are mixed mines.[23] Production from open cast mines during 2014-15 was 92.91% of total production of 494.24 MT.[24] Underground mines contributed to 7.09% of production. CIL further operates 15 coal washeries, out of which 12 are for coking coal and 3 are for non-coking coal with 23.30 MTY and 13.50 MTY capacities respectively. It also manages 200 other establishments like workshops, hospitals etc. Subsidiaries: Coal India produces coal through seven of its wholly owned subsidiaries. Its another wholly owned subsidiary CMPDIL carries out the exploration activities for other subsidiaries. CMPDIL also provides technical and consulting services to it and to third party clients for coal exploration, mining, processing and related activities. CIL also has a wholly owned subsidiary in Mozambique, Coal India Africana Limitada (CIAL) for pursueing coal mining opportunities in that country.

The details of number of employees, revenue for FY 2012-13 and production of coal is given in the table below:

Subsidiary Employees

(As on 31.03.2015)

 Revenue INR billion (FY 2012-13) Coking coal (MT) Non-coking coal (MT) Total Coal Production (MT)
Bharat Coking Coal Limited (BCCL) 56,051 89.37 26.970 4.243 31.213
Central Coalfields Limited (CCL) 45,011 92.38 16.156 31.905 48.061
Eastern Coalfields Limited (ECL) 68,681 97.40 0.043 33.868 33.911
Mahanadi Coalfields Limited (MCL) 22,259 120.93 - 107.894 107.894
Northern Coalfields Limited (NCL) 16,226 99.86 - 70.021 70.021
South Eastern Coalfields Limited (SECL) 67,800 176.48 0.157 118.062 118.219
Western Coalfields Limited (WCL) 50,071 74.23 0.330 41.957 42.287
Central Mine Planning and Design Institute (CMPDI) 3,629 6.05 - - -
Coal India Africana Limitada - - - -
Sub-total 329,728 756.72 43.656 407.950 451.606
North Eastern Coalfields 2,027 - - 0.605 0.605
Dankuni Coal Complex 474 - - - -
CIL Headquarters 868 13.78 - - -
Total 333,097 770.49 43.656 408.555 452.211

Joint Ventures: CIL has two joint ventures:

  1. International Coal Ventures Private Limited (ICVPL) was formed in 2009 for acquisition of coking coal properties outside India. CIL holds 2/7th share in paid up capital of ICVPL.
  2. CIL-NTPC Urja Pvt. Limited is a 50:50 JV between CIL and NTPC, formed in April 2010 for acquisition of coal blocks in India and abroad.

Listing and Shareholding

Listing: CIL's equity shares are listed on Bombay Stock Exchange where it is a constituent of the BSE SENSEX index,Scripwise Weightages in S&P BSE SENSEX SE India 31 Aug 2013 and the National Stock Exchange of India where it is a constituent of the S&P CNX Nifty. Download List of CNX Nifty stocks (.csv) NSE India |31 Aug 2013

Shareholding: On 30 January 2015, 79.65% of the equity shares of the company were owned by the Government of India and the remaining 20.35% were owned by others. On 30 January 2015, in an Offer For Sale (OFS), Government of India sold a further 10% stake in CIL. Priced at INR 358 per share, the sale fetched the government INR 225.5763 billion, making it the largest ever equity offering in the Indian share market.[22] On 18 November 2015, Government of India approved another 10% stake sale in CIL. [25]

Shareholders (as on 30-January-2015) Shareholding
Government of India79.65%
Foreign Institutional Investors (FII)9.04%
Domestic Institutions01.28%
Non-Institutions2.86%
Total100.0%

Employees

Coal India had 333,097 employees as on 31 March 2015, out of which 314,259 were Non-Executives and 18,838 were Executives.It spent Rs. 298.74 billion on Employee benefits which accounted for 50.54% of the total expenditure incurred during the FY 2014–15.

Awards and recognitions

Green Initiatives

Green initiatives: The company planted 1.57 million saplings during 2014-15.[1] In its Annual Report for 2014-15, it informed that it has planted around 82 million trees over an area of around 33700 Ha.[26]

Criticism

Operating 239 mines without environment clearance: In September 2011, CAG criticised CIL for operating 239 mines in seven coal producing subsidiaries, which existed prior to 1994, without environmental clearance.[27][28] These mines included 48 open-cast, 170 underground and 21 combined mines. In its report, the CAG also pointed out that of the 18 sample open-cast and eight underground mines, ten mines had undertaken capacity expansion without environmental clearances. The company, in its reply, said that applications for clearances to the projects have already been submitted to the Ministry of Environment and Forests.[27]
Coal mines near Tiger Preserves: In India, some coal mines are located near/below the tiger preserves. Mining or construction of administrative offices in/near these preserves disturbs the wildlife. Hence environmental organisations like Greenpeace have been opposing mining in these areas.[29][30] Around 50% of the energy requirements of India are met by coal.[1] Hence the protection of wildlife is sometimes overlooked due to this fact.[31] In its argument the CIL said that in many cases it only does underground mining which does not hurts the forests above.[30]
Accidents during mining: The company is its Annual Report for FY 2012-13 reported lowest ever figures of average 66 deaths and 251 serious accidents per year for the period 2010-2012 indicating that safety at workplace is improving over the years.[1] Critics claim that the safety practices in most mines are inadequate, which is causing so many casualties.[32] It is also claimed that many accidents and deaths are not recorded and hence are not part of 'official figures'.[33]

See also

References

  1. 1 2 3 4 5 6 "Annual Report 2012-13" (PDF). Coal India. 27 May 2013. Retrieved 17 October 2013.
  2. 1 2 3 4 5 6 "Annual Report 2014-15". Wipro Limited. Retrieved 21 April 2015.
  3. 1 2 "Coal India is not an expert in CBM exploration: Oil minister Veerappa Moily". Economic Times. 17 October 2013. Retrieved 18 October 2013.
  4. ↑ "Top 10 Global Coal Producers". ArchCoal, Inc. 19 March 2013. Retrieved 20 October 2013.
  5. ↑ "Annual Report & Accounts 2014-15 of CIL" (PDF).
  6. ↑ "Annual Report & Accounts 2014-15 of CIL" (PDF).
  7. ↑ "Annual Report & Accounts 2014-15 of CIL" (PDF).
  8. ↑ "Coal India to join Rs 1 lakh-cr league". Economic Times. 10 June 2013. Retrieved 17 October 2013.
  9. ↑ "Disinvestment of Coal India Ltd (CIL) Through OFS Successfully Completed; Rs 22557.63 Crore Accrued to the Government from this Disinvestment Process; This is the Largest Ever Disinvestment Among Central Public Sector Enterprises (CPSES)". Press Information Bureau, Government of India. 30 January 2015. Retrieved 31 January 2015.
  10. ↑ "Money Control".
  11. ↑ "Coal India gets Maharatna tag". Economic Times. 11 April 2011. Retrieved 19 October 2013.
  12. ↑ "Coal India gets Maharatna status". Business Standard. 11 April 2011. Retrieved 19 October 2013.
  13. ↑ "Capital Market".
  14. ↑ "Table 4-12: Top '50' Companies by Market Capitalisation as on March 31, 2013". NSE India. 31 March 2013. Retrieved 19 October 2013.
  15. ↑ "Eight blue-chip cos add Rs 44,239 cr in market cap". The Hindu. 31 March 2013. Retrieved 19 October 2013.
  16. ↑ "History and Formation of Coal India Limited". Coal India Limited. Retrieved 17 October 2013.
  17. 1 2 "CIL IPO priced at Rs 245 per share". Economic Times. 26 October 2010. Retrieved 19 October 2013.
  18. ↑ "Coal India fixes IPO price at Rs 245 per share". MoneyControl.com. 26 October 2010. Retrieved 18 October 2013.
  19. 1 2 "Coal India lights up Street with 40% gains on debut". Economic Times. 5 November 2010. Retrieved 18 October 2013.
  20. ↑ "Coal India makes spectacular debut". The Hindu. 5 November 2010. Retrieved 19 October 2013.
  21. ↑ "CIL becomes India’s most valuable firm". Live Mint. 17 August 2011. Retrieved 19 October 2013.
  22. 1 2 http://economictimes.indiatimes.com/markets/stocks/news/cil-mega-share-sale-sails-through-government-to-get-rs-22600-crore/articleshow/46066139.cms
  23. ↑ "Annual Report & Accounts 2014-15 of CIL" (PDF).
  24. ↑ "Annual Report & Accounts 2014-15 of CIL" (PDF).
  25. ↑ http://economictimes.indiatimes.com/markets/stocks/news/government-to-raise-rs-21000-crore-at-current-price-from-coal-india-stake-sale/articleshow/49832481.cms
  26. ↑ "Sustainability Report 2012-13" (PDF). Coal India. 14 August 2013. Retrieved 19 October 2013.
  27. 1 2 "Coal India operating 239 mines without environment clearance: CAG". Economic Times. 7 September 2011. Retrieved 19 October 2013.
  28. ↑ "Coal India nominated for Public Eye Awards". Retrieved 19 October 2013.
  29. ↑ "Coal mining threat to tigers: Greenpeace". Indian Express. 3 August 2012. Retrieved 19 October 2013.
  30. 1 2 "MoEF allows coal mining in tiger corridors". Times of India. 19 April 2013. Retrieved 20 October 2013.
  31. ↑ "How Coal Mining is Trashing Tigerland" (PDF). Greenpeace. 2 July 2012. Retrieved 20 October 2013.
  32. ↑ "342 killed in PSU mines in four years". The Sunday Guardian. 8 January 2012. Retrieved 20 October 2013.
  33. ↑ "DNA replies: CIL on coal deaths". DNA. 17 April 2012. Retrieved 20 October 2013.

External links

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