The state-owned coal mining company, Coal India Limited (CIL), was established in November 1975. With a modest production of 79 million tonnes (MTs) in its founding year, CIL is now the world’s largest coal producer and one of the largest corporate employers with a workforce of 2,48,550 (as of 1st April 2022). CIL operates through its subsidiaries in 84 mining regions spread across eight (8) Indian states. As of 1 April 2022, Coal India Limited manages 318 mines, including 141 underground, 158 opencast, and 19 mixed mines, as well as workshops, hospitals, and other facilities.
About The Company
CIL has 21 Institutes of Training and 76 Vocational Training Centres. The Indian Institute of Coal Management (IICM) is a state-of-the-art Management Training “Centre of Excellence” and the largest corporate training institute in India. It operates under CIL and offers multidisciplinary programmes. CIL is a Maharatna company, a status granted by the Government of India to select state-owned enterprises to enable them to expand their operations and become global giants. Only ten of the country’s more than three hundred central public sector enterprises are members of the exclusive club.
CIL has ten wholly-owned subsidiaries in India: Eastern Coalfields Limited (ECL), Bharat Coking Coal Limited (BCCL), Central Coalfields Limited (CCL), Western Coalfields Limited (WCL), South Eastern Coalfields Limited (SECL), Northern Coalfields Limited (NCL), Mahanadi Coalfields Limited (MCL), Central Mine Planning & Design Institute Limited (CMPDIL), CIL Navi Karniya Urja Limited Moreover, CIL has a subsidiary in Mozambique called Coal India Africana Limitada (CIAL). Additional CIL subsidiaries include Hindustan Urvarak & Rasayan Limited, Talcher Fertilizers Ltd., CIL NTPC Urja Pvt. Ltd., and Coal Lignite Urja Vikas Private Limited. CIL’s North Eastern Coalfields (NEC) mines in Assam are managed directly by CIL. Mahanadi Coalfields Limited, a subsidiary of Coal India Ltd, has four (4) subsidiaries, while SECL and CCL each have two (2) subsidiaries.
Production And Growth
Coal India Limited finished the year with its highest-ever production figure of 622.63 MT, a growth of 4.4%, its highest-ever offtake figure of 661.9 MT, a growth of 15.2%, and its highest overburden removal (OBR) figure of 1366 MCum, a growth of 1.6%. CIL subsidiary MCL is the second CIL subsidiary to join the elite club of 150 coal-producing companies. BCCL, NCL, and MCL met their respective production goals for FY ’22 with increases of 24%, 6%, and 14% over the previous year. 662.566 Mts of coal and coal products were dispatched during the 2021–22 period, with 540.571 Mts going to power utilities (including special forward e-Auction). As of 31.3.2022, the total coal stock at power plants was 25.627 Mt (28 days).
It contributes to 75% of all coal-based electricity generation and 85% of all domestic coal production. CIL contributes to 55% of total power generation and 40% of the country’s primary commercial energy needs. Gevra operates the largest open-pit coal mine in Asia, producing 45 million tonnes of coal annually.
Projects
There are 116 active mining projects with a total annual capacity of 915.36 MTY, which contributed 456.28 Mt in 2021-22. Other than this, 161 mining projects with an annual capacity of 379.25 MTY have been completed.
In the fiscal years 2021-2022, 52 mining projects were approved. These projects are anticipated to contribute an additional 102 MT of production in FY 24-25, bringing total CIL coal production to 1 billion tonnes by FY 2024-25.
Initiatives In Technology To Improve Production
CIL has implemented numerous technological initiatives across its total operational activities. Mass Production Technology has been implemented in a number of underground mines. Examples include Continuous Miner Technology and Long-wall Mining. Free Steered Vehicles for underground transportation of people and materials have been introduced. Man-riding schemes have been designed for 63 UG mines of various CIL subsidiaries to reduce the miners’ arduous walking.
The most recent versions of the mine planning software Geovia Minex, Data Mine, Vulcan, and Carlson have been released. This provides the most effective resource management by means of pit design, pit optimization, scheduling of resources and dumps, etc. To prevent theft and pilferage of coal, a GPS/GPRS-based Vehicle Tracking System [VTS] has been installed in coal-transporting vehicles. The introduction of an RFID, CCTV, and Boom Barrier-based Weight Monitoring and control system has increased system transparency. Hydrostatic drills with PCD bits have been introduced to increase the productivity of exploratory drills. Under the R & D project, numerical modelling software (FLAC 3D) was acquired/upgraded and is routinely used for scientific studies involving strata control. The VENTSIM software for ventilation planning in UG mines is introduced. In multiple opencast mines of CIL, 41 departmental surface miners are in operation to eliminate drilling and blasting and to facilitate selective mining. At SECL’s Sharda opencast mine, high wall technology has been implemented with success.
Conservation of Energy
CIL prioritises energy conservation, and various measures are taken to reduce specific energy consumption. For quarry lighting, UG mine lighting, street lighting, offices and other workplaces, townships, etc., high energy efficient super fans have been installed in various CIL subsidiaries in place of high wattage luminaries or conventional light fittings. As a result, significant electricity consumption savings have been realised. At various locations within CIL subsidiaries, energy-efficient water heaters and automatic timers for street lights have been installed. During 2021-22, nearly all subsidiary company areas maintained have power factors of 95% or higher.
Various steps have been taken to utilise solar power as an alternative energy source, such as the successful operation of kilowatt-scale rooftop solar plants. During 2021-22, an additional 4,279 MWp of solar rooftop capacity was added. CIL and its subsidiaries are pursuing the utilisation of renewable energy sources. Solar energy generation by subsidiaries in 2021-22 is as follows:
| Subsidiary | Total Installed Solar Capacity (KWp) up to Mar 22 | Energy generated (in kWh) in 2021-22 |
| ECL | 1046 | 406056.50 |
| BCCL | 681 | 342788.80 |
| CCL | 1247.5 | 746234.00 |
| WCL | 1997 | 905427.86 |
The total solar energy generated during 2021-22 was 40 lakh units.
Carbon Neutrality
Due to the implementation of energy efficiency measures, approximately 31.24 million units of electrical energy will be saved in 2021-22, resulting in an annual decrease of 27,410 tonnes of CO2 (approx.). Similarly, an energy audit was conducted in 8 CIL mines in 2021-22, and 13,273 million units of electrical energy were saved, resulting in a 10884-ton/year CO2 reduction. The generation of solar energy has reduced CO2 emissions by 3,280 tonnes per year.
Highlights From Coal India Limited (CIL) Latest Quarterly Results – Q1 FY 23
- The highest ever Q1 coal production of 159.8 MT and the highest ever OBR of 385.3 MCuM were both achieved during Q1 FY 22-23 compared to the same period last year.
- The highest Q1 offtake ever occurred in 2022–2023, at 177.6 MT. A record-breaking 152.49 MT of Q1 2022–2023’s dispatch went to the power sector.
- PBT and PAT of CIL (consolidated) increased by 179% and 178%, respectively, from Q1 2021-22 to Q1 2022-23, marking the highest quarterly profit ever.
- Profitable Margin and Returns: EBITDA margin of 27% for FY 21-22 and 39% for Q1 22-23. ROAE of 44% for FY21-22. The average dividend payout ratio over the past five years has been 65%.
- The world’s largest coal producer: 318 operational mines produced 622,6 million tonnes in FY 21-22 and 159,8 million tonnes in Q1 FY23. 178 billion metric tonnes of resources and 54 billion metric tonnes of reserves
- Increasing Power Demand in Q1 22-23: Comparing Q1 22-23 to Q1 21-22, electricity consumption increased. Coal-based energy production followed a similar pattern. According to the CEA, thermal PLF reached approximately 72% in April ’22 and approximately 68% in May and June ’22.
- Key to Capacity Building: Railway Lines for Coal Evacuation
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- Exists in an action plan to enhance and strengthen the infrastructure of coal evacuation for existing, ongoing, and future subsidiary company projects to ensure a seamless evacuation system for the anticipated output. Rail infrastructure is being constructed both on a “DepositBasis” and through the formation of SPVs with Rail PSUs and the relevant State Government.
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- Tori Shivpur New BG Single line (43.70KM) to evacuate 32MTPA was funded by CIL and is scheduled to be commissioned in December 2019. The third line is currently under construction and is anticipated to be completed by March 2022. This will increase its capacity to transport 100 MTPA of coal from CCL’s North Karanpura coalfield. (On Deposit Basis by ECRailway)
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- Jharsuguda–Barpali-Sardega: The new BGline (52.41KM) to evacuate 3 4MTPA was financed by CIL and put into service on 04.05/2018. To increase its evacuation capacity to 65 MTPA, the doubling of this rail line, along with loading bulbs at Barpal and a flyover complex at Jharsuguda, is currently underway. (On Deposit Basis by Southeastern Railway) (The expansion is anticipated to be completed by March 2023.)
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- On May 18, 2021, the rail connectivity of Lingaraj SILO with Deulbeda siding at MCL’s Talcher Coal Fields was commissioned (On Deposit Basis by ECo. Railway).
- Operational Highlights
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- Production (Raw coal):159.8 million tons (124.0 million tons in Q1 21- 22
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- Offtake (Raw coal): 177.6 million tons (160.3 million tons in Q1 2122)
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- OBR: 385.3 Million CuM (312.5 Million CuM in Q1 21-22)
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- Average Realization: INR 1,829 per ton (INR 1,451 per ton in Q1 2122)
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- Manpower (as of 01.07.2022): 2,45,764 (2,48,550 as on 01.04.2022)
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- Health & Safety (as of 30.06.2022): Total injuries (fatalities & serious injuries) reduced to 45 from 50 in 2022 ( up to June) vis a vis 2021 ( up to June)
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- Fatalities: 9 & Serious Injuries 36 in 2022 (up to June) vis à vis 17 & 33 (up to June 2021).
- Financial Highlights
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- Sales (Net): INR 32,498 crores (INR 23,294 crores in Q1 21-22)
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- EBITDA: INR 12,779 crores (INR 5,279 crores in Q1 21-22)
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- PBT: INR 12,077 crores (INR 4,336 crores in Q1 21-22)
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- EPS 22: INR 14.33 per share (INR 5.14 per share in Q1 21-22)
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- EBITDA margin: 39 % (23 % in Q1 21-22)
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- Capex: INR 3,034 crores (INR 1,841 crores in Q1 21-22)
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- Net worth (30.06.2022): INR 52,538 crores (INR 43,124 crores as of 31.03.2022)
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- Fund balance (30.06.2022): INR 43,893 crores (INR 35,964 crores as on 31.03.2022)
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- Net Receivables (30.06.2022): INR 14,164 crores (INR 11,368 crores as of 31.03.2022).
- Environment Highlights
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- Almost 2826.75 Lakh KL discharged mine water was supplied for community use in FY21-22 and 639.58 Lakh KL mine water has been shared for community use in Q1 of 2022-23.
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- In FY 2021-22, out of discharged 6047.03 Lakh KL, 89.61% water was utilized for own use and community use and the remaining 10.39% is retained for future use and groundwater recharging.
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- Irrigated 727 villages with 10.68 lakh beneficiaries in FY 21-22.
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- CIL is developing 3,000 MW of solar power projects by FY 24.
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- Developed 27 Eco-Parks & Eco Tourism Projects til FY 2021-22.
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- 440 rainwater harvesting projects.
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- In FY 2021-22, the plantation has been carried out in 1,468 Ha and 31.18 Ha area planted in Q1of 2022-23
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- 35 FMC Projects of 414.5 MTY capacity is being built in1st Phase.
- Biodiversity Management and Occupational Health & Safety
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- In 2022-23, CIL intends to plant over 1,510 hectares of land. In 2021-22, CIL planted 30.42 lakh trees over a total area of 1,468 hectares, of which approximately 1,180 hectares were planted within the mine leasehold area.
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- In the mine leasehold area, CIL has planted 104,35 lakh saplings over a total area of over 4,391 hectares from 2017-18 to 2021-22.
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- In addition, during the same time period, CIL planted 10.8 lakh saplings on an area of over 808 hectares outside the mine leasehold area.
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- The plantation carried out between 2017-18 and 2021-22 on the mine leasehold, when mature, will have the capacity to absorb 1.76 lakh tonnes of carbon dioxide per year.
Conclusion
CIL is committed to playing a significant role in securing the nation’s energy supply. On the basis of the demand projections in “Vision 2024” for the coal sector in the country and subsequent demand projections for CIL, a roadmap has been developed in which CIL plans to produce 1 billion tonnes (Bt) of coal in 2024-25 in order to meet the country’s coal demand. In order to achieve this objective, CIL has identified major projects and evaluated other relevant issues.
Frequently Asked Questions (FAQs) on Coal India Ltd.
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What is Coal India Share Price?
Coal India Share Price is INR 226.95 as of September 22nd, 2022.
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What are the 52-week highs and lows of Coal India Share Price?
As on September 22nd, 2022:
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- 52-wk high Rs 240.50
- 52-wk low Rs 139.15
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What are the key metrics to analyse Coal India Share Price?
Key metrics to analyse of any share price are: 52-week high, 52-week low, 1-year return, 5-year return, etc.
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What is the market cap of Coal India Ltd?
The market cap of Coal India Ltd is INR 1.40LCr as of September 22nd, 2022.
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