Coal India Ltd

Coal India concluded the fiscal year 2023-24 on a thumping note with impressive all-round performance, poised to enter fiscal year to achieve even higher goals aspirations set for our company.

Dear Stakeholders,

Coal India has closed the financial year 2023-24 on a thumping note, all-round performance, and step into another fiscal to meet higher goals and aspirations placed on our company. Coal, still retains its energy dominance and continues to be the forerunner in meeting India's primary commercial energy. A position that would not be challenged for at least two decades hence despite the onrush of renewable energy sources.

While energy is important so is the environment and the onus is on us to mine the coal with minimal impact of environment and society. We should strike a judicious balance between these imperatives, through sustainable practices, as we have been doing since decades past.

I would like to touch upon a few key performance areas that your company has excelled in and initiatives that it had embarked upon. Your company is equally committed to the wellbeing of all the associated stakeholders.

1. Importance Coal and Coal India Limited

Globally coal accounts for nearly 36% of the electricity generation whereas in the Indian context it is almost twice of that at 73% in the power generation. As baseload fuel, coal virtually empowers the power sector of India. Factors that weigh heavily in favour of coal are its abundance, availability and affordability making it the preferred fuel of choice. Its accessibility and reliability of delivery are other supplementing factors. Additionally, coal continues to stoke many non-power industries as well viz. cement, fertilizers, sponge iron, aluminum and a host of other industries.

Against this backdrop, you will be proud to know that CIL have put up a strong performance in all the physical parameters in the just concluded Financial Year 2023- 24. The production achievement of 773.647 Mt during 2023-24 were the result of synergic efforts at all levels right from Ministry of Coal, Coal India Limited and all its subsidiaries.

2. Performance Peaks

Coal production of 773.647 MT during 2023-24 achieved 99.16% of the annual target of 780.20 MT registering 10% growth, for a record second successive year. Bearing testimony to a high growth orbit the incremental gain during the previous two financial years combined (2023-24 & 2022-23) was a mammoth 151 MTs. This is higher, by 22.6 MT, than the cumulative growth of 128.4 MT of previous seven years (2014-15 to 2021-22).

At a time when the country is focusing on ramping up coking coal production, CILproduced 60.433 MT of this variety in FY 2023-24 with a growth of 10.65% over last fiscal's 54.618 MT.

For the first time in 14 years, since FY 2010, CIL was able to arrest the declining trend in UG production and produced 26.021 MT bettering the previous fiscal's UG production of 25.487 MT clocking a growth of 2.10%.

Over Burden Removal (OBR)

Sustaining the high growth trend of previous financial year, CIL extracted 1964.144 million cubic metres (Mcum) of OB overtaking the annual target of 1837.565 Mcum achieving 106.89% of the target satisfaction.

This is the second consecutive year that CIL has surpassed its OBR target. OBR growth bodes well for CIL in getting future ready to ramp up the production.

Total coal off-take

Total coal off-take scaled up to 753.52 MTs with an incremental growth of 58.84 MTs compared to 694.68 MTs of FY 2023. Off-take grew by 8.47% during the year.

Supplies to Power Sector

Supplies to coal fired plants peaked to an unprecedented 619.7 MTs meeting 1 01.59% of the 61 0 MTs demand projected by the Ministry of Power and Central Electricity Authority.

Compared to 586.58 MTs off-take to power sector in FY 2023 the increase in volume terms was 33.12 MTs, which is a growth 5.64%.

3. Other Highlights

Quality Coal Supply: The efforts for better quality coal supplies reflected a positive jump as the grade conformity improved to 76% during FY 2023-24 from 70% over preceding year as per the Third-party sample analysis results received till 31.03.2024.

Rake loading up: Daily average rail loading was at its highest ever level of 291.9 rakes/day against 273.6 rakes/ day during the corresponding period of 2022-23, registering a growth of 6.68%. Rake loading for Power Sector consumers was also at the highest ever level of 268 rakes/day aga inst 259.4 ra kes/day during the same period last year, registering a growth of 3.31%.

MDOs: Of the 15 MDO projects identified for outsourcing the production, (11 OC and 4 UG), having combined capacity of 173 MT/Y, work order for 13 Projects of 141 MT/Y capacity have been issued where mining operations have begun in 4 projects which contributed around Rs.MTs of coal in FY 2023-24.

Approval of Projects: 16 coal mining projects having a total capacity of 170.46 MT/Y (incremental Capacity - 85.66 MT/Y) with total sanctioned capital of Rs. 27,087.69 crore were approved in FY 2023-24

5. Capex Push

The target of Capex of CIL & its Subsidiaries was Rs 16,500 crore as on 31st March 2024. During the year CAPEX spending amounted to Rs. 23,475.41 crore registering a growth of 26% over last year ( Rs. 18619.27 crore).

6. Impetus on UG mining

During the year, six Continuous Miners have been deployed as part of strategy to boost UG mechanization with Mass Production Technology. Further, three Highwall Miners have been commissioned during FY24 in ECL, WCL and SECL.

Revisiting abandoned UG mines:

In a bid to tap the latent coal reserves of some of its closed and discontinued underground mines, CIL has awarded 11 such mines during 2023-24 on revenue sharing model to successful bidders of the private sector.The cumulative peak rated capacity of these mines is 17.86 million tonnes/year (MT/Y) while the total extractable reserves are estimated at 267.54 MT. A total of 24 such mines have been awarded so far out of 34 identified mines. Your company is also identifying few more mines for the purpose to attract wider participation with relaxed bid norms.

7. Diversification Initiatives

CIL has tremendous potential to aim for a considerable topline boost through a mix of multi-dimensional diversification initiatives, which will pave the way for new areas of strategic growth. FY 2023-24 was marked as the year when, the highest number of feasibility studies (preliminary and detailed) were completed, several MOUs as well as one JVA were executed to lay the foundation of CIL's entry across multiple sectors. During this year FY 2024, five (05) of CIL's diversification initiatives (TPP - 2, Coal to Chemicals - 2, and Fertilizers - 1) have obtained the approvals from the Cabinet Committee in Economic Affairs (CCEA) for equity investment beyond the extant ceiling mandated by DPE guidelines

Renewables: Solar power generation lists prominently in CIL's drive towards net zero emissions. Current installations stands at approximately 82.68 MW with 71.63 MW Solar Capacity commissioned during the year. Further, approximately 195 MW are under implementation stage. Solar Power generation stands at 20.219 Million units as of FY 2024 end.

Thermal Power Plants: To support nation's endeavors for cleaner, affordable and reliable energy, CIL has geared up to setup several super-critical /ultra supercritical pit-head thermal power plants. Site identification and pre-feasibility studies for the flagship initiative of 2x800 MW (Phase-I) through Mahanadi Basin Power Limited has been completed. Acquisition of land and appointment of PMC is under final stages.

Surface Coal Gasification: Under Coal to Chemical business vertical, three coal gasification projects have been taken up. A JV agreement was signed with BHEL for the project in Odisha, whereas the signing of JV agreement with GAIL is in the advanced stage for project at West Bengal.

Critical Minerals Value Chain

With an objective to reduce the import dependence on critical mineral assets like lithium, cobalt CIL is actively pursuing acquisition of these minerals in India and abroad. Under the domestic initiatives, CIL has participated in the first tranche of the e-auction of critical mineral blocks offered by the Ministry of Mines and will continue to participate in such acquisition of blocks.

In the long term, CIL is aspiring to expand beyond the current geographical boundaries in the minerals sector, and emerge as a contemporary GLOBAL ENERGY AND MINERAL CONGLOMERATE that operates in a professional and consumer-friendly manner while staying committed to sustainable developmental goals.

8. CSR- Positively impacting the Lives of People

CIL and its subsidiaries have utilized Rs. 654.49 crore on CSR initiatives in FY 2023-24 against the statutory requirement of Rs. 547.59 crore, that is, 119.52% achievement. Other notable events of FY2023-24 were inauguration of Medical college cum hospital at Angul, Odisha and cardiac care hospital at Jharsuguda, Odisha; offering assistance through CIL's flagship CSR project 'Thalassemia Bal Sewa Yojana' to 500 underprivileged children for Bone Marrow Transplant. As recognition of this endeavor the project also won GLOBAL GOLD in the Fuel, Power & Energy Category in the internationally acclaimed 'Green World Awards-2024'.

Plantation: For the first time CIL's plantation area has exceeded 2,000 Hectares in FY 2023-24. Stepping up the greening efforts in mining areas CIL's subsidiaries have increased the plantation area to 2,167.61 Hectares surpassing the annual target of 1,820 Hectares.

Creation of Eco-Park: CIL has been creating eco-parks as a part of land reclamation as well as to boost local tourism and promote conservation in mining areas. In addition to existing 30, CIL has developed 2 more eco- parks, one each in NCL and WCL during FY 2023-24 over an area of 10.50 Ha at 1.25 crore.

Mine Water Utilization: CIL effectively uses the discharged mine water for domestic and industrial purposes. 2,595.29 lakh Kilo Litres (LKL) mine water was utilised for own use and 2,591.42 LKL for community supply including domestic and irrigation purpose benefitting 11.62 lakh people in 857 villages.

Energy Efficiency Measures:

In a bid to reduce carbon-di-oxide emissions in its mining areas, CIL has undertaken several energy efficiency measures.The cumulative effect since the initiation of these measure three years ago till FY 2023-24 resulted in saving 12.84 Mill Units of electrical energy per year and reduction of 1,05,319 tonnes of CO, emissions per year.

OB to Sand: Towards sustainable development goal, CIL is utilizing an eco-friendly conversion of overburden material for making sand. This initiative makes cheaper sand available for commercial and internal use. Overburden is also utilized for other purposes like road construction, construction of railway siding, civil works etc. 4.33 lakh Cubic metres of OB has been used in FY 2023-24 for such purposes generating a revenue ofRs 14.80 crore for the company.

10. Safety is Always a priority

Safety of mines are of utmost importance and CIL is committed to safe and sustainable mining practice, prioritizing the well-being of employees. FY 24 had 28 fatalities and 45 serious injuries as against 21 and 60 in FY23 respectively. Safety Audit has been completed in all mines of CIL and adequate preventive measures have been taken including introduction of new Occupational Health and Safety Policy to ensure safety and well-being of employees across all mines and establishments.

11. Corporate Governance

Your Company has complied with the conditions of Corporate Governance, as stipulated in the Guidelines on Corporate Governance for Central Public Sector Enterprises (CPSEs) issued by the Department of Public Enterprises, Government of India and Regulation 34(3) read with Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 with the Stock Exchanges. As required under SEBI (LODR) Regulations 2015, a separate section on Corporate Governance has been added for compliance of conditions of Corporate Governance and has been obtained from a peer reviewed, Practising Company Secretary.

Your Company has conducted Secretarial Audit by a peer reviewed Practicing Company Secretary firm for F.Y. 2023-24 as required under Companies Act' 2013. The Company has complied with the provisions of Companies Act' 13 and SEBI (LODR) Regulations 2015 except for appointment of Woman Independent Director resulting in levy of penalty by Stock Exchanges for non-appointment of Woman Independent Director.

The Secretarial Audit Report 2023- 24 forms part of Director's Report. The power to appoint Woman Independent Director vests with the Govt, of India. Your Company has taken up the matter with Ministry of Coal even before vacancy arose as well as subsequent to the vacancy.

12. Vision

Your Company's vision is to ensure that there is no shortage of coal in the country and to make the country self-reliant in terms of coal. Coal India envisions to be a commercially viable Company and endeavours to move ahead as a contemporary, professional, consumer friendly and successful corporate entity committed to national developmental goals. Our vision also extends to dedicate our services to the service of the countrymen in providing the primary commercial energy in an affordable and environment-friendly manner. Coal India aims to be not only a valued Company, but a Company with values.

13. Acknowledgement

• On behalf of your Company's Board of Directors, I wish to convey my deep gratitude to you, our valued shareholders, for your continued support and trust. This motivates us to excel in all our pursuits and constantly create value for you as well as for the nation.

• I appreciate the unstinted support and valuable guidance received from the Ministry of Coal, Government of India. I also express my sincere thanks to other Central Government Ministries and Departments, State Governments, all employees, Trade Unions, Auditors, Consumers, Suppliers and all other stakeholders for their continuous co-operation.

COAL INDIA FUNDS THE NEWLY INAUGURATED SHUTTLE EXPRESS STADIUM

Coal India is proud to have contributed to the development of sporting facilities in the Nation. Coal India has helped partially in the construction of the Shuttle Express Stadium, the largest badminton stadium located in Kolkata, West Bengal, using CSR funds. Spread over fifty-six thousand sguare feet the Shuttle Express stadium boasts of eight world-class teak-wood Badminton courts, dormitories with toilets, dressing rooms, a warm-up track, a kitchen and a training ground

COAL INDIA - THE CORPORATE CITIZEN

The recently inaugurated Service Block at the Ramakrishna Mission Vivekananda Centre for Human Excellence and Social Sciences, known as the "Vivek Tirtha," in New Town, Kolkata, stands as a testament to the generous funding by Coal India, as a part of its corporate social responsibility initiatives.

COAL INDIA INKS MOU FOR POWER PURCHASE AGREEMENT

Coal India signed a Memorandum of Understanding with Haryana Power Purchase Centre (HPPC) which expressed interest of HPPC to purchase 800 MW of power from 'Mahanadi Basin Power Ltd' a wholly owned subsidiary of Coal India arm, Mahanadi Coalfields Limited. The MoU's purpose is to formalise and clefinethe basic framework of discussions of the power purchase agreement. The MoU was inked in the presence of Shri Manohar Lai Khattar, Hon'ble Chief Minister of Haryana, in the state capita I Chandigarh. Shri Debasish Nanda Director (Business Development) CIL signed the pact on behalf of Coal India and Mr. Randeep Singh, Chief Engineer represented HPCC which is a joint forum of the State's two DISCOMS.

(P.M. Prasad)

Chairman