Coal India Limited is an Indian state-controlled coal mining company
headquartered in Kolkata, West Bengal, India. It is the largest coal producer
company in the world and contributes around 82% of the coal production in
India. It produced 494.24 Million tonnes of coal during FY 2014–15 and earned a
revenue of INR 954.35 billion from sale of coal in the same financial year. As
on 14 October 2015, Union Government of India owns 79.65% of the shares in CIL
and controls the operations of CIL through Ministry of Coal. In April 2011,
CIL was conferred the Maharatna status by the Union Government of India. As on
14 October 2015, its market capitalisation was INR 2.11 trillion
making it India's 8th most valuable company by market value.
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
through Bharat Coking Coal Limited. Similarly, it acquired all 711
non-coking coal mines in India through Coal Mines Authority Limited. 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. Government of India held 100%
of its shares from 1975 till 2010. Initial Public Offer: In October 2010,
Government of India offered 10% of the equity shares of CIL to public for sale
at an offer price of INR 245 per share. The IPO got over-subscribed by 14.17
times. Against an IPO issue size of INR 155 billion it received bids for INR
2400 billion crores making it the second highest collections in any IPO in India.
On the first day of its listing on the stock market, its shares soared 40%
higher than IPO price. With the listing, CIL become the fourth most valued
company on the Indian stock exchanges with a market value of INR 2.16
trillion. 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.
On 30 January 2015, in an Offer For Sale, 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. Operations
CIL is the largest coal producing company in the world. It produced 494.24
MT 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. Production from
open cast mines during 2014-15 was 92.91% of total production of 494.24 MT.
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 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:
Joint Ventures: CIL has two joint ventures:
International Coal Ventures Private Limited was formed in 2009 for
acquisition of coking coal properties outside India. CIL holds 2/7th share in
paid up capital of ICVPL. 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
NSE India |31 Aug 2013 Shareholding: On 30 September 2013, 90%
of the equity shares of the company were owned by the Government of India and the
remaining 10% were owned by others. On 30 January 2015, in an Offer For Sale,
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.
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 Coal India Limited was conferred with
two Corporate Social Responsibility Awards on 18 February 2013: 'Global CSR
Excellence and Leadership Award' for Best Corporate Social Responsibility
Practices and 'Blue Dart Most Caring Companies of India Award'.
For 2012, CIL earned a ranking of 48 on overall global performance in the
'Platts Top 250 Global Energy Company Rankings'.
CIL features on the Forbes Global 2000 rankings for 2012 at position 377.Coal
India on the Forbes Global 2000 List Forbes 31 May 2013 19 October 2013
In December 2012, it was ranked as the 9th on the Fortune India 500 list.IOC
retains top slot in Fortune 500 India list The Hindu 15 December 2012 19
October 2013 CIL was conferred with "Company of the
Year Award" in a function organised by Indian Chamber of Commerce and
Department of Public Enterprises in September 2011 at 2nd Summit on 'India
Public Sector Agenda @2020' at New Delhi.
Green Initiatives Green initiatives: The company planted
1.57 million saplings during 2014-15. In its Annual Report for 2014-15, it
informed that it has planted around 82 million trees over an area of around
33700 Ha. 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. 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.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. Around
50% of the energy requirements of India are met by coal. Hence the protection of
wildlife is sometimes overlooked due to this fact. In its argument the CIL said
that in many cases it only does underground mining which does not hurts
the forests above.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. Critics claim that the safety
practices in most mines are inadequate, which is causing so many casualties. It
is also claimed that many accidents and deaths are not recorded and hence are
not part of 'official figures'. See also
Coal mining in India Environmental impact of the coal
industry Coal
List of companies of India List of public sector undertakings in
India References
External links Official website
Management Profiles Coal India Limited at Reuters
News articles on Coal India Limited at The Times of India
Coal India Limited at Bombay Stock Exchange of India
Coal India Limited at National Stock Exchange of India
Coal India Limited on Facebook