You are the youngest member of the Coal India family. Performance wise how do you rank compared to the other older members of CIL?

Mahanadi Coalfields Limited is the second largest coal producing and profit making company in Coal India. It is going to produce 125.10 MT and 180 MT during the terminal year of XI Plan & XII Plan respectively which would be highest in Coal India.

You have initiated transparency through a major initiative on e-procurement. Can you share with us the details and how the same has improved the operation of MCL?

MCL has implemented a system of e-Procurement for works and services wherein the bidders can download the tenders and submit the tenders online on its portal http://mcltenders.gov.in. It is special in the sense that it involves “Automatic Technical Evaluation” and thereby eliminating the scope of subjective judgement leading to very quick finalisation of the Tenders. In this system the tenders are evaluated based on the information furnished by the bidders online and later on the documents of the lowest bidder are verified for confirmation. The bidder can know the status of his bid till award of work online on this portal.

The cycle time has been drastically reduced to as less as 28 days which used to be as 120 days approximately under the manual system of Tendering. There has been lot of convenience to the Bidders and they can bid from any place any time within the stipulated period. The Bidder base has been increase due to this system leading to better competition, as a result of which MCL is getting more competitive price as compared to the conventional system of Tendering.

The bidders are getting the information at each stage of Tender process in a fully transparent manner. The Bidders can also remotely observe the status of the Tender opening.

Apart from above, many tangible benefits like reduction of cycle time, cost of tendering, cost of bidding, competitive rates, enhanced bidder base there are intangible benefits in terms of immense transparency and uniformity in the procurement process. This is a big step towards implementation of e-Governance in MCL.

How much of coal reserve is in the forests? Do you face delay in mining due to forestry clearances? Could you please share some instances?

Around 20 to 25 per cent coal reserve of MCL is in the forests (estimation sheet attached). MCL is suffering due to delay in getting forestry clearance. Some instances are given below
  1. Approval of Garjanbahal OCP, whose PR was made during X Plan, has been kept pending due to non-clearance of Forest Diversion proposal.

  2. Forest diversion proposal of Bharatpur OCP is pending since 15.04.2004.

  3. Forest diversion proposal of Belpahar OCP is pending since 04.03.2005.

  4. Samaleswari OCP got approval of its forest diversion proposal after around 5 years.


Do you face problems of law and order due to presence of the Maoists? How do you tackle the same?

There is no such incident occurred in and around MCL jurisdiction/area till date. However, we are always in close contact/touch with concerned Police Officials. All MCL officials, who are posted in different Coalfields/HQ have been directed to keep close watch specially over any such activity. We are taking appropriate action from our existing resources. In addition to this, we have already requisitioned CISF for deployment at all the sensitive/vulnerable points. In this connection survey is already completed recently. On the other hand all CGMs/GMs of the Areas have been directed for engagement of Armed Police Personnel from Government of Orissa till deployment of CISF.

How is the safety record of MCL compared to the other CIL companies? Do you have any unique safety initiative?

Safety Statistics of last the five years for the Subsidiary companies of Coal India is appended below:

From the Safety statistics as furnished above, it is revealed that in the year of 2005 the Fatality rate per Million Te. Production was 0.13 which was the second lowest among all the subsidiaries of CIL. Since 2006 onwards the Fatality rate per Million Te. Production is the lowest among all the subsidiaries of CIL. The Fatality rate of CIL for the last 3 years is about 0.15, whereas the Fatality rate of MCL is only 0.03 to 0.05, which is very much less than the rate of CIL. The Safety record vis-à-vis Fatality rate of MCL is at par with the rate of the developed coal producing countries like USA, Australia etc. Our aim is to reduce it to zero harm level.

Unique Safety Initiative: In addition to the religiously compliance of the statutory provision of the Pit Safety Committee in respect of Inspection and Meeting by the Pit Safety Committee, MCL has introduced Safety Day observation in every month in all the Mines of MCL. Safety Day Observation is an occasion where a Committee other than the Pit Safety Committee of the Mine inspects the mine along with a representative of MCL HQ and a discussion is being held by the inspecting committee members to point out the shortcomings of the mine in respect of safety.

The phenomenal aspect of the occasion of the safety day observation is that the topic of the occasion for inspection and discussion is being chosen by the CGM(Safety) of MCL HQ in every month like Mine Geometry, Mine Fire, OB Dump Fire, Dust Suppression in Haul Road, Illumination at working faces, Monsoon preparation etc. At the end of the day, the representative of the MCL HQ submit a report to the CGM(Safety & Rescue) for his appraisal and necessary action. Repeated and grave shortcomings are brought to the knowledge of the concerned Directors (Tech) and simultaneously instructions are issued to the Area CGMs/GMs for rectification. Procurement of 2 stimulators is in advance stage.

Your output per man shift has improved substantially between 1992-93 to 2008-09. How did you achieve the same? Was creation of a separate company that is MCL one contributing factor?

During the year of 1992-93 OMS of the Company was 4.79 Te whereas it is 16.43 Te during the year 2008-09 mainly for the following reasons:

  1. Introduction of Surface Miner since June 1999
  2. Increased number of highly mechanised Opencast Mines
  3. Increased mechanization of in UG Mines

  4. Reduction of Manpower by phase out of manual loading system by mechanical loading system in UG mines.


How much capital has been invested by MCL? What is the return on the capital invested? How much does MCL pay back to the state and central exchequer —say in 2008-09. What was the amount?

MCL supplies coal largely to power sector. What are the generating companies receiving coal from you? You have good rail linkages. How much of coal is supplied through rail and how much by road?
Major power sectors like TNEB, NTPC (Simhadrai), NTPC (Kaniha), Vijayawada, Kolaghat, Koradih, KPCL (Raichur) and Khaperkeda have been receiving coal from MCL.

Mode-wise summary of Coal dispatch to Power Houses as on 30.11.09:

What is your target production in the current year? What is total coal reserve under MCL/How long will the same last? How is the quality?

The target of production of MCL during the current year (2009-10) is 109.30 Mt. The total coal reserve (including proved, indicated & inferred category) up to a depth of 1200 m in MCL command area 65.23 BT as on April 01, 2009. This includes the reserve of MCL blocks, captive blocks and unallocated blocks lying in the state of Orissa. Out of this about 19 BT is proved reserve. There is about 12 BT of proved reserve under MCL blocks and it will last for more than 10 years. The quality of coal in MCL command area is generally ‘F’ Grade. However, when we will mine deeper deposits, the quality may improve.

MCL has performed well since its inception. Where do you plan to take it from here?

From the current level of production at around 100 Mt. MCL has planned to produce 180 Mt by the end of XII plan (2016-17) and 220 Mt by the end of XIII plan (2021-22). The maximum production level of 240 Mt has been envisaged during XIV plan period.