Confederation of Indian Industry had organized an Interactive Session with Mr N C Jha, Chairman, Coal India Ltd. Interactive Session moderation was by Mr Aloke Mukherjea, Past Chairman, CII Eastern Region. Closing remarks by Mr V K Arora, President- Coal Services as also Vice Chairman, CII – Mining Construction Equipment Division. The Session was well attended by the big-wigs of Indian Industry. Cocktails and adjourn was sponsored by us.

Mr. V K Arora addressing the gathering

Mr V K Arora, President- Coal Services was invited as Speaker for “Improving SCM to make India Trade Competitive” session for Indian Institute of Foreign Trade’s National Trade Symposium. The Indian Institute of Foreign Trade (IIFT), a deemed university established in 1963 under the Ministry of Commerce, Government of India, is one of India's premier B-schools, with a heritage of more than four decades in imparting quality education in the field of business management. In light of its contributions to the global business environment, IIFT holds the coveted position of being India's leading school of International Business.

• National Trade Symposium 2011
• Logistics Nightmare for movement of Bulk Commodities

Mr. Jha, Distinguished
Guests and Friends,

It is with great pleasure I welcome all of you to the Eightieth Annual General Meeting of our Association today. This year, we have reached an important milestone as the Association has completed 80 years of service to the country’s coal industry and trade.

Today we have the pleasure of welcoming Mr. N. C. Jha, Chairman, Coal India Ltd. He has been keeping extremely busy for the last few days because of which the date had to be postponed. Nevertheless, we are extremely happy to have Mr. Jha with us today and it will be good and useful for us to interact with him on important matters concerning the policy of coal marketing in India.

Mr. Jha is veteran mining engineer with rich and varied experience in coal industry for over 3 decades. Mr. Jha has left his mark in the evolution of coal industry as well as Coal India Ltd. Mr. Jha has had a long stint in CMPDI and then rose to become Director Technical of Coal India and for sometime also held the additional charge of CMD of SECL for 9 months. For an important company like CIL, he is today acting as not only Chairman CIL but Director Technical and Director Marketing. As his friend and well wisher, I would have wished that he had been provided with adequate assistance but then the Government has its own way of working and given the limitations, Mr. Jha has given a very good account of himself.

I am also expressing our sincere thanks to our respected guests, dignitaries, our member-brethren and also to the members of the press who are with us today. I am greatly encouraged by the presence of senior officers from Coal India, its Subsidiaries, the Railways and many VIPs. This shows the degree of confidence and respect which coal commands in the daily lives of a common man.

Coal consumers and coal agents:
Friends, it is seen that services of the coal agents are sometimes not properly understood. I would like to give a small brief on this. Much before the coal nationalization beginning in 1971, our Association ICMA came into being in the year 1930. All through these times, coal agents have been providing a useful link between the coal producing centres and the coal consuming centres. A need thus has been felt to find a supplier of coal for the buyer and a buyer for the supplier. A coal agent therefore has to remain in close touch at these two points at the same time . This is no small task. He has to ascertain requirements of the buyer qualitatively and quantitatively, then arranges with colliery and goes through the ordeal of completing formalities for procuring railway wagons, supervises the weighment part and arranges prompt payment for quick despatch of coal at the consumer’s door. In fact, even after the nationalization of coal, our Association’s role has remained as before. Today, our Association ICMA is reckoned as the most representative body of independent coal agents. As for generation of employment, ICMA and its members are contributing meaningfully to the country’s economy by providing employments to large number of people directly and indirectly.

The Indian Economy:
Before I speak on coal, let us have a quick glance of our country’s economy. Indian economy has shown great resilience and has been on a sustainable growth path. As per the revised CSO estimates, GDP growth in 2010-11 was 8.5% as against 8.0% in 2009-10. For the ongoing year, it is expected that GDP growth would see a moderation of around 8.5% again which is lower than the projected 9% as has been stated in the Hon’ble Finance Minister’s Budget Speech this year. There is prediction of a normal monsoon and the growth in agriculture sector is giving a positive signal. The manufacturing and services sectors are also at high growth trajectory.

The developments on the inflation front however remain a cause of concern and efforts are being made to contain the inflation by hardening interest rates and other strict fiscal measures.

Coal output:
Implementation of a tighter environment-related regulation by environment ministry since early last year, has very severely impacted expansion in the domestic coal production. Country saw practically zero growth in coal production last year. As against 532 million tonnes during 2009-10, production in 2010-11 stagnated at 533 mill. tonnes against a target of 565 mill. tonnes. The fact is, when demand for coal during 2004-05 to 2009-10 grew at an average 8% annually, coal output during this period expanded at 7% a year. We fear that a somewhat static condition in production during two consecutive years of 2009-10 and 2010-11, may have a cascading effect also for the ongoing year 2011-12 which is terminal year of the XI-Plan Period. Coal production initially targeted at 680 mill. tonnes by Planning Commission for 2011-12, has been pruned twice first at 630 million tonnes and now finally lowered to 554 million tonnes. Because of huge cut-back in production programme for a situation beyond control, there is now revised estimate by Planning Commission that India’s coal shortage of around 140 mill. tonnes by 2011-12, may soar to even 200 mill. tonnes by XII-Plan end in 2016-17.

As for the main producer, Coal India Ltd.(CIL), accounting for over 80% of national coal output, the growth in production was ‘near zero’ during 2010-11 versus 2009-10, with a little over 431 mill. tonnes output against the recently revised target of 440 mill. tonnes due to green hurdles. For the current fiscal 2011-12, CIL was keen to achieve coal production of 520 million tonnes but for same environmental constraints, this got scaled down twice – first to 486 mill. tonnes and now finally pegged at 452 mill. tonnes; this means a likely addition of 21 mill. tonnes from last year’s production of 431 mill. tonnes. It could perhaps be said that despite environmental hurdles, it will be an achievement, if it can go to a level of 452 mill. tonnes.

However, a near-stagnation scenario in the country’s UG production and coking coal production has been continuing for long. We are sure, Coal India is very much alive to this but what is seen in practice that open cast mining is still a preferred choice. Underground coal raising that at one time – during the seventies, was above 70% of net coal output, is now hovering in the region of 11 to 12 per cent. A further worsening situation is emerging in coking coal output, now hardly at 8 to 9%. Sir, we hear plenty of proclamations that with lot of investments having taken place, the underground production alongside coking coal output will be stepped up. Unfortunately, performance in these two areas does not match the proclamations and large number of industries - very much dependent on coal in these two areas, continue to suffer and country’s import bill jumps every year. We would urge CIL that thrust for UG mining that works on lesser land area and still gives better quality of coal, be taken up with all seriousness to get away from a prolonged stagnation.

Singareni Coal:
Friends, you are aware, Singareni Collieries Co. Ltd.(SCCL) by now, has emerged as a responsible coal company, accounting for over 10 per cent contribution in the national coal output. During last 4 years, SCCL has stepped up its production quite substantially – from 40 mill. tonnes in 2007-08 to 45 mill. tonnes in 2008-09 and then to 50 mill. tonnes in 2009-10. During 2010-11, there was setback in their OC production because of heavy rains in the mining areas and overall production suffered because of ongoing limitations on the environmental front. Despite all such odds, SCCL could still touch coal production of 51.3 mill. tonnes during 2010-11. SCCL has plans to start several new mining projects in 2011-12 and that will give an additional 4 mill. tonne production capacity. Because of their good corporate governance and gradually bringing in modern production techniques in UG mines, SCCL today has ranked among the top mining companies in the world.

E-auction of coal:
Friends, e-auction of coal has now once for all come to stay and the scheme is working satisfactorily. At a time when small consumers not enjoying linkages, were occasionally remaining starved of supplies, re-introduction of the e-auction scheme has come as a boon to them. Even though some consumers, mostly power producers in private sector favour discontinuation of e-auction sales, we note with much satisfaction that the Hon’ble Coal Minister has ruled out such a possibility and coal presently being sold by CIL through e-auction route under Order of the Supreme Court, will continue. It is a fact that non-regulated sectors procure a sizable quantum, of 25 to 30% of their requirements, from the open market and continuation of e-auction sales has come a saviour to them. E-auction sales have now stood the test of time and is for mutual interest. Whilst buyer has the assurance of their getting supplies at some increased price of around 20% over the notified price, seller also gets the opportunity to liquidate their enormous stockpiles and thus make handsome profits in the process.

Friends, it is to be noted that amid a situation when during 2010-11, Coal India’s production was flat at 431 mill. tonnes, it earned an excess of 81% on notified prices through e-auction as against 63% in previous fiscal and as a result, CIL’s income from e-auction during the year came to a whooping Rs.8,891 crores with net profit at Rs. 4,025 crores.

I’ve said that e-auction price has been kept at higher mode in fact to allow the market-oriented price to come into play. Now friends, if we take it for the sake of argument that this ‘market price’ can be stretched to any length until saturation is reached then we fear the day is not very far when a serious situation may loom large on the economic working of the vast number of non-regulated industries and this will percolate down to the country’s entire economy. This is particularly relevant when from 27/2/11, CIL more than doubled the notified prices of Gr. A & B coal.

Friends, when price of coal is already going high and under e-auctions, is further pushed up and often going beyond the reach of the customers, it is my request to the Chairman, CIL to look into this area dispassionately. Customer’s pockets are not deep and ultimately, it is the man on the street who pays for the coal.

Coal supply constraints:
For some time non core sector consumers and their accredited agents are plagued with several irritants and I state as follows –

Recent hike in prices:
Recent hike in prices of Grade A and B by 150% and the others by 37% has hit the industry very hard particularly those linked to A and B grades of coal. The price was hiked on the plea that Indian coal was still cheaper as compared to imported coal. This is a fact but I would like CIL to appreciate that incase of imported coal, the quantity and quality is assured at the destination whereas in CIL, you have to pay for the declared grade which unfortunately is one to two grades higher than the actual grade, there are elements of shortages of atleast 2-3%, there are incidents of penal over loading and underloading. We may not have a problem to pay the increased price provided the same level of integrity is maintained in terms of quality and quantity. It may be of interest to know that imported coal is now working out to be cheaper than Indian coal for A and B grades, and lot many of the consumers have switched to imported coal.

Trigger level compliance:
At the time of entering fuel supply agreements (FSAs) with the consumers, CIL after applying a trigger level mechanism, fixes the ACQ (annual contract quantity). This trigger level is a varying quantity – 90% for power, 60% for non-power i.e. non-core sector and 50% for the new consumers. Since trigger level means a prescribed percentage of contract volume that supplier will supply and consumer will lift by road or rake failing which penalty will be imposed on one who defaults, the fact is, a reduced ACQ for low trigger level, is very much hurting the non core consumers today.

Overloading and Underloading:
The carrying capacity of the wagons has been time and again increased and this results in underloading charging of excessive nature and also penalties in case of overloading – a situation totally beyond control of the consumers and their agents. Coal consumers feel the pinch more when there is now a steep 200-250% increase in the grade A/B coal prices and for ECL coal consumers, they are to bear an additional WB Cess of Rs.500/tonne, effected from April this year. It is only expected that in an all-round price hike scenario as is today, coal consumers be given a fair treatment with regard to loading of wagons. I may not be mistaken to give your one recent experience that as against a permissible ‘cc’ of wagon of 65+2 MT, loading from UKA-V was at 60-61 MT and that too of poor quality with the result that consumers had to suffer substantial underloading charges plus a dead freight payment running into lakhs of rupees.

To combat this difficulty, what is needed today is a strong and strict monitoring of test weighment of wagon regarding determination of its ‘cc’ and this be done on a regular basis by a committee with representatives drawn from Railways, Coal India and the consuming industries. When consumers are asked to pay high price for coal which they are also not hesitant to do, it is only required that they are not made to suffer a/c these two criterions, quality and quantity and in name of ‘B’ grade, they are not thrust with D or E grade coal.

Weighbridges in disarry:
Friends, we have reports that there is manipulation of the Weighbridges that are owned and manned by both Coal Companies and the Railways, always to swing results in favour of the collieries. This is being practised in collusion by a section of coal loading/ siding staff and railway staff who are posted at the Weighbridge points for issue of invoices and this tarnishes good image of coal and rail. I would only urge CIL and the Railways to jointly initiate some strong measures regarding this vexed issue. Although CIL appears receptive to this and has resorted to surprise checks of loaded rakes on random sample basis, yet enough has not been done to alleviate miseries of the consumers.

Railways:
Friends, in total revenue earning traffic, coal still dominates with a steadily increasing share (in tonnage terms) from 44.3% in 2008-09, to 44.6% in 2009-10 and to further 45.6% in 2010-11. This improved growth in coal traffic definitely speaks of an improved monitoring of the Railways, Coal traffic is expected to further look up provided the several deterrents standing in its way, are removed to make consumer’s life easier. There is need to strengthen infrastructure for loading and unloading of coal at he collieries and sidings. One silver-lining is, supply of empties has to some extent improved. Against 158 rakes per day made available last year in April/10, CIL has received 181 rakes this year in April/11, still 10 rakes short of its expectation. Loadability factor and minimum chargeable weight of wagon, is important matter as I’ve said earlier. Increasing ‘loadability’ stipulated by the Railways regardless of the actual capacity, is to be taken note of with all seriousness.

Friends, with these words, I shall now close. I have spoken to you about some matters that are worrying us today.

I would express my sincere thanks to the CIL Chairman, Shri N. C. Jha and all officials of the coal ministry, CIL and its Subsidiaries and the Railways for their help and cooperation all along . I am grateful to the members of the Press who have always taken keen interest regarding country’s coal matter in which our Association has played an important part.

I would thank my esteemed colleagues on our Executive Committee and the Sub-Committees for sharing their wisdom and expertise during my tenure in office. Our Senior-Vice President, Mr. Rajan Arora is not in Kolkata today. In this also, my friends who guided me constantly are Mr. V. K. Ailawadi, Mr. A. P. Jain, Mr. P. C. Bhutoria , Mr. Naresh Ojha and Mr. Dipak Shah. I’ve no hesitation to say that but for their enormous help, cooperation and guidance that I enjoyed from them, my work would have been difficult. Once again, I am expressing my very grateful thanks to each of them.

Last, I place my appreciation for the good work of our staff.

Thank you

The Annual General Meeting was held on 26th September, 2011 at 11-45 A.M. at Palladian Lounge (3rd Floor) on the Bengal Chamber premises at 6, N. S. Road, Kolkata.

President, Mr V K Arora welcoming Mr N C Jha, Chairman, Coal India Ltd. with a flower bouquet		(from left to right) Secretary ICMA, Mr S K Ghose, President ICMA, Mr V K Arora, Chairman Coal India Ltd., Mr N C Jha and Vice President ICMA Mr V K Ailawadi		President ICMA, Mr V K Arora, Executive Director, KCT, Mr Varun Thapar and Mr Avinash Sahai of Takraf
Mr V K Arora and Mr N C Jha

   

Mr N Bala, Chief Manager ISPRL - Vizag and Mr Sunil, Manager ISPRL - Vizag, have been conferred with the awards of Gold Performer and Silver Performer of the Year 2010-11, respectively, from the CEO of ISPRL, Mr Ranjan K Pillai.

Mr Pillai, also adds that the team member should take a cue from their style of working, in the years to come and aspire for this highest honour which is a recognition of meritorious work.

The award for the Best Site has been bagged by SKE&C-KCT JV, Padur and a certificate of appreciation has also been awarded from CEO, ISPRL. Mr JM Lee, Project Manager who along with his team has ensured that site is impeccable in all respects.

Fourteen Sandvik underground jumbo drill rigs are being used on India's three strategic crude oil storage caverns under construction, in drill and blast duties to excavate more than 9 million m³ of rock from the 24.4 km of tunnels and caverns to store 5.33 million metric tonnes of crude oil. Deputy Project Manager for the S K E&C - KCT JV on the Padur project contract 1B, Prasanna K.M, has stated that the Sandvik rigs represent "the lifeline of the project."

News Article...

Scaling MUA1-East		Face Drilling MUA1-West		Shotcreting
Explosive Charging		Shotcreting MUA1-West		Mucking

D 355-A Dozer Deployed for Dumping area Muck Levelling		Re-Inforcement Rod Fitting in the 4th Lift for Shaft’ B’		Concrete Foundation Casted for Gantry Creane Erection near Shaft ‘B’
Second Lift Concrete Poured in Shaft ‘A’		Pre-Fabricated Steel Structure and Gypsum Board Installed by M/S Nig and Richi for Labour Colony at Msez Area

Access Tunnel
 

Water Curtain

Portal Area

TICIL Division, one of the key contractors, is proud that Tehri Dam has stood the rigors of heavy rainfall and flooding in Uttarakand. “Tehri dam's general manager (projects) A. L. Shah said, " The dam is safe and there is no need to worry." Further, officials have staggered the automatic discharge system so as not to cause heavy flooding in downstream towns such as Rishikesh and Haridwar. Enclosed, are pictures of the water being discharged through the spillways.”

more details...
 

Engineers’ Day was celebrated by the TICIL team both in Delhi and Tehri. Officers took time to remember Sir Mokshagundam Visvesvaraya and his contribution to the nation.
 

Sir Mokshagundam Visvesvaraya		Mr. S. Saran, VP - Marketing, Mr. R. N. Mukherkjee, COO addressing colleagues at TICIL, New Delhi.

Program was started after lighting the candle by Mr A K Aggarwal General Manager (P) and offering flower to Sir M. Visvasvaraya. On this occasion General Manager (P), Mr A K Aggarwal appealed to all Engineers’ to follow the footprints of Sri M. Visvesvaray and to contribute their full in progress of the nation and our company. The function was dispersed with thanks to all participants.

Mr. A. K. Aggarwal, Director - Projects, addressing TICIL Employees on the occasion of Engineers’ Day		Mr. S. D. Singh, DGM (Civil) addressing TICIL Employees on the occasion of Engineers’ Day.		Participants on Engineers’ Day at TICIL Campus, Tehri

On the 6^th September 2010, the Access Tunnel at the Rock Cavern Project at Padur, was inaugaurated by Mr. Rajan K. Pillai, CEO, ISPRL.
 

The Healthy Universe Foundation has awarded Mr. Samir Saran, the Vice President, TICIL, Karam Chand Thapar & Brothers (Coal Sales) Limited, the National Level Award - "Pride Of Nation" for "Business Excellence" for his contribution towards National advancement.

This prestigious award was given to him by Mr. Jai Prakash Agarwal, Delhi Pradesh Congress Committee (DPCC) President and Member of Parliament serving the North East Delhi (DL) Lok Sabha Constituency.
 

On 15th July 2010 at about 3.55 PM – the Padur JV Team have successfully conducted the 1st blasting activity at Padur Cavern Project (Part-B). Padur JV team has performed the dynamic blasting event twice per day.
 

	Click to play this video

Karam Chand Thapar & Bros. (Coal Sales) Ltd. was one of the Co-Sponsors for the Annual Session & 82nd Annual General Meeting of Indian Chamber of Commerce held on Friday, 2 July 2010 at Hotel Oberoi Grand, Kolkata.

Dignitaries like:

• Shri Kamal Nath|Hon’ble Union Cabinet Minister| Ministry of Road Transport & Highways|Govt. of India
• Shri Sriprakash Jaiswal | Hon’ble Union Minister of State (IC) | Ministry of Coal and Statistics & program Implementation | Govt. of India
• Mr. Sunil Mitra | Secretary | Department of Revenue | Ministry of Finance | Govt. of India
• Mr. Sumit Bose | Secretary | Department of Disinvestment | Ministry of Finance | Govt. of India
• Mr. Partha S. Bhattacharyya | Chairman | Coal India Limited

were some of the eminent speakers of the annual session, who spoke on the theme – “Promoting Growth through Reforms, Infrastructure & Manufacturing”

Lifetime Achievement Award was presented to Dr. R. P. Goenka, Chairman Emeritus, RPG Group.

News Paper Link

 

Merchants’ Cup Tennis Competition 2009, a contest for the ‘Merchants’ Cup’ among teams invited from Kolkata based organizations, held at Calcutta South Club Ltd. from 10th to 15th May, 2010. Mr. V. K. Arora, Vice President, Karam Chand Thapar & Bros. (Coal Sales) Ltd. and Mr. G. K. Mukerjea, CEO, Indicon Logistics Ltd. (A KCT Group Enterprise) represented KCT as a team.