ism sip project

7/25/2019 ISM SIP Project

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ACKNOWLEDGEMENT

The sense of contentment and elation that accompanies the successful completion of this

project would be incomplete without mentioning the names of the people who helped me in

accomplishing this project, people whose constant guidance, support and encouragement

resulted in its realization.

I am highly indebted to INDIAN SCHOOL OF MINES DHANBADfor providing me with

the opportunity to be able to do my Summer Internship in BHARAT COKING COAL

LIMITED. My earnest thanks to my company guides, GM(S&M)Mr. B. K. JHAfor their

valuable guidance and support in ensuring me a free hand during the course of the work.

eartfelt thanks to Sr. Manager (S&M)SCP Mr. D. KUMAR CM(S&M)OP Mr. U. B.

SINGH Manager(S&M)RS Mr. G. CHATRAJ Sr. Manager (S&M)R Mr. P. K.MISHRA Sr. Manager (F)Sa!e" A#C Mr. K. K. CHOUDAR$ CM(S&M)C%%rn. Mr.

H. P. SINGH for giving the valuable time and information to help me in my project.

I owe much to my faculty guide Dr.!M") SAUM$A SINGH INDIAN SCHOOL OF

MINES DHANBAD for the inspiration and guidance which enabled me to take up work

which made me learn new things and concepts.

This project would not have seen the light of the day but for their sustained direction,

supervision and continuous encouragement that saw me sail through the difficulties that I

faced.

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S$NOPSIS

The main reason behind choosing this project is that the ".#.#.$ is one of the highest coals

producing in India. $ignite, "ituminous and %nthracite are the main coal found in India

which build the economic development of country. It is helpful to the young generation to

learn about the fossil fuel and minerals of the country. &ur country is a mi'ed economic

country and mostly depends on its minerals, every sector depends upon the energy and the

coal fulfills the re(uirement, as per the customer re(uirement the dispatch is done and we

mostly depends on it, our life is fully round with coal.

This project is on ".#.#.$)s sales and Marketing of coal. It is all about the Marketing of

".#.#.$ through *+%uction. *+%uction is mainly related to marketing and the traffic of

".#.#.$ means the sales through roadways and railways. *+%uction is the main reason for

getting profit of "##$. Thus I choose e+auction. In e+%uction mainly consider on time and

money on which any candidate bid on. - of coal sales through /S% and rest coal sales

through e+%uction, i.e 0- coal through it. #oal is delivered in two ways by road and by rail.

ence on the basis of coal delivery e+%uction is two type on road and on rail. &n road basis

-1 tonne coal can be bid and on the basis of rail 232- tonne i.e one rake.

In *+%uction also shown that if "##$ fulfill 41 demand or above then "##$ get

incentive. This incentive act as profit for "##$. In other side the price of coal is e(ual to

sum of reserve price and 21 of reserve price. It is shown that in bidding process the price of

coal gone 1 reserve price 5 reserve price. ence "##$ get ma'imum profit on e+%uction.

Thus *+%uction is the major reason for getting profit.

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CONTENTS

CHAPTER

'. INTRODUCTION

#&%$ 6

. ABOUT THE ORGANIATION

#&%$ I78I% $IMIT*8 -

8I9*#T S:"SI8I%9I*S ;

I78I9*#T S:"SI8I%9I*S ;

"##$

&9-

&9;+>3

$*%8*9SI@ >4

*. BACKGROUND OF THE PROJECT

&"A*#TIB* &/ ST:8= 0>

9*S*%9# M*T&8&$+00

*+%:#TI&7 &/ #&%$ 00

S@&T *+%:#TI&7 02+21

3


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/&9C%98 *+%:#TI&7 2>+24

SC&T 24+61

+. ANAL$SIS & INTERPRETATION 6>+62

,. CONCLUSION

#&7#$:SI&7 66

$IMIT%TI&7 6-

9*#&MM*78%TI&7 6;

"I"$I&


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#oalification is the name given to the development of the series of substances known as peat,

lignite or brown coal, sub+bituminous coal, bituminous coal, and anthracite. The degree of

coalification, also called the rank of the coal, increases progressively from lignite to low rank

coal, to high rank coal, to anthracite. The carbon content increases, while theoxygen and

hydrogen contents decrease throughout the series. The hardness

increases, while the reactivity decreases. 8ifferent amounts of heat and pressure during

the geochemical stage of coal development cause these differences in rank. It is not due to the

kind of plants the coal is formed from.

Major coal area in India

The main places are in Aharkhand D "ihar. Aharia coal fields of Aharkhand are one of the

biggest D on Indian map will come between :@ D 7epal.

Types of coal in India

>. $ignite,

0. "ituminous and

3. %nthracite.

CHAPTER

ABOUT THE ORGANIATION

5


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C%a! In3a !3430e-2

#oal India $imited !#I$E + a Schedule F%F FMaharatnaF @ublic Sector :ndertaking under

Ministry of #oal, >>.>1 million tons per annum. "esides this, we provided 3- hospitals and 606 dispensaries.

The Indian Institute of #oal Management !II#ME operates under #I$ and imparts multi

disciplinary management development programs e'ecutives.

#oal IndiaFs major consumers are the power and steel sectors. &thers include cement,

fertiliser, brick kilns etc.

M3""3%n %5 C%a! In3a L3430e

The Mission of #oal India $imited is to produce the planned (uantity of coal, efficiently and

economically with due regard to safety, conservation and (uality.

C%r6%ra0e S0r/10/re an S/"33ar7 C%46an3e"

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&ur #ompany has nine direct Subsidiaries and two indirect Subsidiaries as listed below J

D3re10 S/"33ar3e"- In3an

>. B8ara0 C%93ng C%a! L3430e (BCCL)H

0. #entral #oalfields $imited !##$EH

2. #entral Mine @lanning and 8esign Institute $imited !#M@8I$EH

6. *astern #oalfields $imited !*#$EH

-. Mahanadi #oalfields $imtied !M#$EH

;. 7orthern #oalfields $imited !7#$EH

. South *astern #oalfields $imited !S*#$EH

3. Cestern #oalfields $imited !C#$E.

D3re10 S/"33ar3e"- In0erna03%na!

>. #oal India %fricana $imitada.

In3re10 S/"33ar3e" !held through our subsidiary, Mahanadi #oalfields $imitedE

>. MASA #oal $imitedH and

0. M7 Shakti $imited.

Pr3n136a! C%46e030%r"-

>. 9%< #oal International %


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#&M@%7= @9&/I$*

C%46an7 Na4e - B8ara0 C%93ng C%a! L3430e.

E"0a!3"8e 7ear - Jan/ar7 ':;"harat #oking #oal $td !"##$E was incorporated in

Aanuary, >40 to &perate coking coal mines !0>6 7o)sE operating in the Aharia D 9aniganj

#oalfields, taken over by the ;th &ct, >4> to ensure @lanned

development of the scarce coking coal resources in the country.

C8a3r4an21/42Manag3ng D3re10%r - S8r3 T.K.La83r3

A183e growth in raw

coal production during 8ecember, 011- and >0.- increase in &" removal in %pril+

8ecember, 011- over the same period last year.

0E Cashed #oking coal production is growing by around 0- in 1-+1; after declining

persistently since >443+44 to 0112+16.

2E 9eversing the trend of persistent losses till 12+16, washeries have earned profit of

9s.01.-- crores during %pril to 8ec 1- as against profit of 9s. ;2.3> #rores in the same

period in 16+1- and losses earlier to that.

ORGANISATION HISTOR$-

B8ara0 C%93ng C%a! L3430e!"##$E is a subsidiary of C%a! In3a L3430ewith its

head(uarters in D8ana. It was incorporated in Aanuary, >40 to operate coking coal mines

!0>6 7o)sE operating in the Aharia D 9aniganj #oalfields, taken over by the ;th &ct,>4>.

#urrently, the #ompany operates ='coal mines which include +>underground, '=opencast

D * mi'ed mines. The #ompany also runs ?coking coal washeries, non+coking coal

'
http://en.wikipedia.org/wiki/Coal_India_Limitedhttp://en.wikipedia.org/wiki/Coal_India_Limited


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washeries, %ne#aptive @ower @lant !0'>1 MCE, and ,bye+product coke plants. The mines

are grouped into >2 areas for administrative convenience.

"##$ is the major producer of prime coking coal !raw and washedE. Medium coking coal is

also produced in its mines in Mohuda and "arakar areas. In addition to production of hard

coke, "##$ operates a number of sand gathering plants, a network of aerial ropeways for

transport of sand and nine coal washeries, namely, D/ga M%8/a B8%@/38 Pa08er38

L%na S/a438 Bar%ra M%%n338 an Ma8/8an.

()erall scenario

"harat #oking #oal $imited is one of the consistently loss+making subsidiary company of

#oal India $imited. The losses incurred by the company during 0110+12, 0112+16 and 0116+

1- were 9s. -1.>2 crore, and 9s. -;4.3- crore and 9s. 4-4.62 crore respectively . The

company has made a turn around in the current fiscal year and has registered a profit of >.;;

crores during %pril to 8ecember 011-. The paid up capital of the company as on 2>.12.011-

is 9s. 0,>>3.11 crore. The company has accumulated losses of 9s. ,166.10 crore as on

2>.12.011-. The total manpower as on >.6.1- was 40,0;3 and as on >.12.>1 is 0,000.

Pr%@e10" /ner0a9en

% fast track plan to develop the virgin >-th seam at Moonidih for a 0 mtpa coking coal mine

by introducing State of the %rt high capacity @S$C has been initiated.

/or opening up a large opencast mine, steps have been initiated for development of

Galyaneswari @roject on fast track to produce 0 mtpa medium coking coal plus 2mtpa non

coking coal.

%ction has been initiated for amalgamating 7orth D South Tisra to develop a - mtpa

mine.

To handle the augmented raw coking coal production, a detailed plan of action for

modernization of coking coal washeries, approved by the "oard, has been taken up for

implementation.

8ecline in production from underground mines is a grey area, which remains a major cause

of concern. % plan for amalgamation of small mines into a few large mechanized

underground mines is being contemplated and is in planning stage.

*


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&te+s taen

>E % major step forward was to internalize market premium on coal sold to non core sector by

introducing internet based e+marketing to establish free, fair and transparent access to coal for

all consumers.

0E Taking over the 8hanbad+@atherdih 9ailway line on fire, dismantling railway line to

commence coal production by digging out the fire with hired *MM was another major

initiative in this direction.

2E % revival plan was formulated in /ebruary 0116 with an objective to reverse the trend and

implement on a fast track, activities re(uired to arrest and reverse trend of fall in coal

production on one hand and focus on value addition on the other.

6E "esides the above a few other initiatives have been taken to improve work culture by

introducing faster decision making, streamlining back up services such as procurement ofmaterials in time to minimize stock out of production holding and safety items, end to Kdead

body politicsL, introduction of >11 payment to workers through banks etc.

1-


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FEATURES-2

T8e C%46an7 8a" 30" 8ea/ar0er" a0 D8ana 3n J8ar98an. I0 8a /ner 30"

18arge na03%na!3e C%93ng C%a! M3ne" an 0% 43ne" na4e!7 M%%n338 an

S/a438 0ran"5erre 0% 30 5r%4 08e er"083!e Na03%na! C%a! De


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Per5%r4an1e

PRODUCTION

(Figs in Million Tonnes)

C%46an7 T76e':;+

2 ;,

':=+

2 =,

'::+

2 :,

>>'

2 >

>>

2 >*

>>*

2 >+

>>+

2 >,

>>,

2 >?

>>?

2 >;

>>;

2 >=

>>=

2 >:

>>:

2 '>

"##$

:< >-.;6 >2.26 >>.64 .-4 .04 ;.6 ;.23 -.6 6.41 6.6; 6.>2 2.4

0.>1 3.-1 >.0; >.;; >;.3;>-.46 >-.46 >.36>4.21 01.- 0>.23 02.;>

TOTA

L';.;+'.=+=.;,,.,+.',.?=.**.*'+.',.',.,' ;.,'

C%a! Re"er>:)

(in billion tonnes)

T%0a! Re"er


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C%93ng **.+ ';., '*.= .'

N%n2C%93ng **.= ==.* '>:.; *,.=

T%0a! ?;. '>,.= '*., *;.:

3"3%n-To emerge from the position of domestic leader to leading global player in the energysector by adopting best practices from mine to market with due care to environmental and

social sustenance.

M3""3%n-@roduce the planned (uantity of coal efficiently and economically with due regard

to safety, conservation D (uality.

Pr%/10 %5 B.C.C.L.

'.C%93ng 1%a!+ for use in Steel @lants.

. N%n !3n9e a"8er7 1%93ng 1%a!+ for other industries.

*. Se43 L% %!a03!e (SL) C%a!.

+.N%n 1%93ng 1%a!+ for power houses, fertilizer and cement plants etc

,. Wa"8e 1%a!+ for Steel @lants.

?. Wa"8er7 43!3ng + for power plants.

;. Wa"8er7 "!/rr7 an re@e10"+ for brick kilns and other industries.

=.Har 1%9e2 for defence, locomotive and other industries.

COKING COAL -

These coals, when heated in the absence of air, form coherent beads, free from volatiles, with

strong and porous mass, called coke.

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These have coking properties

Mainly used in steel making and metallurgical industries

%lso used for hard coke manufacturing .

SEMI COKING COAL -

These coals, when heated in the absence of air, form coherent beads not strong enough to be

directly fed into the blast furnace. Such coals are blended with coking coal in ade(uate

proportion to make coke.

These have comparatively less coking properties than coking coal

Mainly used as blend+able coal in steel making, merchant coke manufacturing and

other metallurgical industries.

NLW COKING COAL -

These coals are having inferior coking properties to the medium coking coal but produce

weak coke. They are, however, useful for production of metallurgical coke in blends with

matching metallurgical coals.

NON2COKING COAL -

These are coals without coking properties.

Mainly used as thermal grade coal for power generation

%lso used for cement, fertilizer, glass, ceramic, paper, chemical and brick

manufacturing, and for other heating purposes

HARD COAL -

ard coke is formed from coking semi+coking coal through the process of carbonisation.

Mainly used in metallurgical industries

%lso used in industrial plants utilising furnaces

WASHED AND BENEFICIATED COAL -

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These coals have undergone the process of coal washing or coal beneficiation, resulting in

value addition of coal due to reduction in ash percentage.

:sed in manufacturing of hard coke for steel making

"eneficiated and washed non+coking coal is used mainly for power generation

"eneficiated non+coking coal is used by cement, sponge iron and other industrial

plants

MIDDLINGS -

Middlings are by+products of the three stage coal washing beneficiation process, as a

fraction of feed raw coal.

:sed for power generation

%lso used by domestic fuel plants, brick manufacturing units, cement plants,

industrial plants, etc.

REJECTS -

9ejects are the products of coal beneficiation process after separation of cleans and or

middlings, as a fraction of feed raw coal.

:sed for /luidized "ed #ombustion !/"#E "oilers for power generation, road

repairs, bri(uette !domestic fuelE making, land filling, etc.

CIL COKE # LTC COKE -

#I$ #oke $T# #oke is a smokeless, environment friendly product of the 8ankuni #oal

#omple', obtained through low temperature carbonisation.

:sed in furnaces and kilns of industrial units

%lso used as domestic fuel by halwais, hotels, etc.

COAL FINES # COKE FINES -

These are the screened fractions of feed raw coal and $T# coke #I$ #oke respectively,

obtained from the 8ankuni #oal #omple' and other coke oven plants.

:sed in industrial furnaces as well as for domestic purposes.

TAR # HEA$ OIL # LIGHT OIL # SOFT PITCH -

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These are products from 8ankuni #oal #omple' using low temperature carbonisation of non+

coking coal in vertical retorts.

:sed in furnaces and boilers of industrial plants as well as power houses, oil, dye,

pharmaceutical industries, etc.

GRADATION OF COAL

A. COKING COAL

- but not e'ceeding >3

Cashery N I %sh e'ceeding >3 but not e'ceeding 0>

Cashery N II %sh e'ceeding 0> but not e'ceeding 06

Cashery N III %sh e'ceeding 06 but not e'ceeding 03

Cashery N IB %sh e'ceeding 03 but not e'ceeding 2-

B. SEMI COKING COAL

4 but not

e'ceeding 06

C. NON2COKING COAL


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8 *'ceeding 6011 but not e'ceeding 6461

* *'ceeding 22;1 but not e'ceeding 6011

/ *'ceeding 0611 but not e'ceeding 22;1

< *'ceeding >211 but not e'ceeding 0611

D. HARD COKE

"eehive &rdinary *'ceeding 2> but not e'ceeding 2;

SUITABILIT$ OF COAL

E. HARD COKE

In/"0r7 T76e %5 C%a! Re/3re

Steel making

#oking and semi+coking coal, direct feed

and washedH blendable coalH low ash %ssam and 9anigunj coal

Steel making, sponge iron industry7on+coking coal of high Initial 8eformation

Temperature !I8TE !O>011 degrees #elciusE

#okeries coke oven plants #oking and semi+coking coal

"ri(uette making domestic fuel makingSemi+coking and non+coking coalH middling

D rejects of washeries

Special Smokeless /uel !SS/E Semi+coking coal of #oking Inde' 3 N >1

@ower sector

7on+coking coalH middlings of coking coal

washeriesH washed coal of non+coking coalwasheries

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#ement sector7on+coking coalH middlings of coking coal

washeries


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1*


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2-


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Leaer"836-2

"##$ lead by dynamic leader Mr.T.G.$ahiri + chairman+cum+Managing 8irector. e

recently joins as technical soon, after he also resume for #M8. is dynamic leadership

efforts D ideas has turn around the company from loss running organization to

achievement of 9s.42 crore during financial year 0114+01>1.e with his flagshipshown the path to achieve profit for their work during the current year with

improvement in production despatch D productive of coal. e was instrumentally

introducing himself under corporate social responsibility for which he acclaimed from

ministry of coal.

C%n"/4er" %5 B.C.C.L

Ma@%r 1%n"/4er"-2

>. @ower !8B#, C"@8#$, 7T@#E and

0. Steel sectors.

O08er"-2

>. #ement,

0. /ertilizer,

2. "rick Gilns, and

6. Small scale industries

T%631-2

KMar9e03ngSa!e" & 3"0r3/03%n %5 1%a! %5 BCCLL

Sales and distribution of coal in mostly done through railways and roadways. The minimum

(uantity of coal in a bo' of rake i.e.in railways is ; tons, which is - times more than a

roadway caring. The customer like steel co., power co., fertilizer co., chemical co., purchased

the coal as per their re(uirement as per /S% !/uel Supply %greementE.the >1 of dispatch ofcoal can be sale through e+auction.

W8a0 3" Mar9e03ng "a!e" & 3"0r3/03%n %5 1%a! %5 BCCL

Sales and distribution of coal of "##$ means selling of coal to the different company like

steel co., power co., fertilizer co., chemical co., lime factories defence etc. the different grade

of coal is been sold through e+auction through /S% .The coal is distributed by the siding of

"##$ through the railways rakes.

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W87 3" Mar9e03ng "a!e" & 3"0r3/03%n %5 1%a! %5 BCCL 346%r0an0

Sales and distribution is important because it)s a monopoly company and have no

competitors in own country, only have international competitor but it does not face the

competition because it does not e'port his product to other country. the country mainly

depends on coal for producing power, energy, steel, fertilizer or the every thing that need

carbon for producing another goods, it also support economically to the country, "ecause

there is link between each one.

H3g8!3g80" %5 Mar9e03ng "a!e" & 3"0r3/03%n %5 1%a! %5 BCCL

Marketing, sales and distribution is mainly related to the section and division of sales and

marketing of ".#.#.$.it includes various sections of marketing.i.e.+

1. Sales control D planninge+auction.

2. Traffic

3. 9oad sales

4. 9ealisation

5. Sales accounts

6. #oordn. Section.

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CHAPTER *

BACKGROUND OF THE PROJECT

OBJECTIE OF STUD$

To understand and analyse *+%uction services.

To identify the profit and growth gained through *+%uction.

To understand the effectiveness of *+%uction service.

RESEARCH METHODOLG$

E6!%ra0%r7 re"ear18is a type ofresearchconducted for a problem that has not been

clearly defined. *'ploratory research helps determine the bestresearchdesign, data

collectionmethod and selection of subjects. It should draw definitive conclusions only with

e'treme caution.


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Social e'ploratory research Pseeks to find out how people get along in the setting under

(uestion, what meanings they give to their actions, and what issues concern them. The goal is

to learn Fwhat is going on hereQF and to investigate social phenomena without e'plicit

e'pectations.P

The purposes are e'ploratory, descriptive and e'planatory. *'ploratory research is used when

problems are in a preliminary stage. *'ploratory research is used when the topic or issue is

new and when data is difficult to collect. *'ploratory research is fle'ible and can address

research (uestions of all types. *'ploratory research is often used to generate formal

hypotheses.

Sales control planning/e-auction

E2a/103%n %5 1%a!

#oal distribution through e+auction was introduced by #I$ with a view to provide access

to coal for such consumers who are not able to source coal through the available institutional

mechanisms for reasons like the seasonality of coal re(uirement, limited re(uirement of coal

not warranting long term coal linkage etc. :nder 7#8@, about >1 of annual production of

#I$ has been earmarked for offer under e+auction. 8uring the period from %pril 13 to

&ctober, 13 #I$ offered a (uantity of about - Million Tons of #oal as compared to >;Million Tons offered during the same period of the previous year.

Sales control planninge+auction is mainly related to the marketing of the coal of "##$

through online to the customers. Those who have not /S% under %#R basis. The /S% is done

in two different years i.e. - years for 7on+core sectors !privateED 01 years for #ore sectors

!publicE.it will be clear through the under data.

COMPAN$WISE PERFORMANCE OF E2AUCTION OF RAW COAL IN CIL FOR

MARCH'> (PROISIONAL)

#&M@%7

= 7%M*

7o. of

"idder

s

7o. of

Successfu

l "idders

Total

(ty.offere

d !$ tonsE

Total

(ty.allocate

d !$ tonsE

%verage

7otified @rice

of Total

(ty.allocated!i

n 9sTonE

%verage "id

@rice of Total

(ty.allocated!i

n 9sTonE

Increas

e &ver

7otifie

d @rice

*#$ 620 2-2 0.00- >.442 0>-1.-0;366 03.6>>64 22.3121

24


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BCCL :,+ '*;; .: .; '+;.;;==; +?:.*'=* ;.:+:

##$ >06 >; ;.--2 -.;42 >221.1>4200 >40.-;1>;0 66.40

0

7#$ >;4 >>3 >.>- >.>- >030.0;13 0602.630;> 34.111

6

C#$ 460 ;01 -.;2 -.--4 >6>4.0>0134 >423.2-0000 ;2.-4

6

S*#$ 30 ;10 >>.3>3 >>.3>3 40;.-4-106- >40.3-32-0 42.633

3

M#$ 2;> 2>3 02.>; >;.60 >2.>0-212- >112.>662 61.;;3

7*# -- 2 1.6-- 1.606 2>2-.>6>-14 6;20.321>4 6.;4

-

CIL 1-4 6>6> -2.030 6-.23 >1;3.-3132 >;;6.43;3 --.3>03

Some of the small sector company purchase the coal by e+auction.the e+auction is classified

into two categories i.e.J+

>. spot e+auction

0. /orward e+auction

S6%0 e2a/103%n

Terms D #onditions of Spot e+%uction Scheme 011

O@e103


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0.> "efore participation in the e+%uction, a prospective "uyer shall be re(uired to get itself

himself registered with the Service @rovider appointed by the #I$ #oal #ompanies for the

purpose, by submitting an application in the prescribed format available on the Cebsite of the

respective Service @roviders. The application shall be made along with the re(uired

documents such as copy of Income Ta' return!latestE, @%7 7umber, Sales Ta' Bat

9egistration #ertificate, SSI 9egistration, Trade $icense, if applicable, @assport sizephotograph, etc. as prescribed by the service provider. 9egistration can be done either online,

or at any of the front offices of the service provider.

0.0 %fter the registration, all+prospective "uyers will have an auto generated K:ni(ue :ser

I8L D a KpasswordL based on which they can log in. 8etails of the registration process with

the service provider will be available in their respective websites.

0.2 The service provider shall issue K@hoto Identity #ardL to their registered bidders duly

authenticating the identity D signature, indicating a K:ni(ue 9egistration 7umberL allotted

to them. The K:ni(ue registration numberL of the registered bidders shall be communicated

to the #oal #ompanies by the service provider.

0.6 &nly one registration will be done against one @%7 number. owever, based on more

than one independent valid sales ta' registration, more than one registration against a @%7

7umber can be considered. In such cases, the details of valid sales ta' registration will be

indicated in each @hoto Identity #ard).

0.- %ll "uyers having been registered with the service providers shall also have to furnish

non+interest bearing *arnest Money 8eposit !*M8E at the rate of 9s.011+ per ton, with the

Service @rovider. This *M8 shall not be specific for a particular Subsidiary #oal #ompany

and shall be available with the Service @rovider for participation in the e+%uction across the

Subsidiary #oal #ompanies of #I$, as

$ong as the re(uired amount of *M8 is available in the bidders ac. with the Service

@rovider.

2. N%03531a03%n-

2.> #oal companies would draw program for conducting at least two e+%uctions per month

and notify the same, minimum !sevenE days in advance, through display on the #ompany)s

notice board and putting the same on the #oal #ompany)s websites for wide publicity. The

program will be intimated to the Service

@roviders accordingly for hoisting the same on their websites also.

2.0 There will be separate auction for dispatches by rail and road mode. The minimum

(uantity for bidding would be -1 !fiftyE tons for a source for 9oad mode, where as in case of

9ail the minimum (uantity for bidding would be > !oneE rake. The rake size shall be as per

prevalent 9ailway 9ules. The (uantity of coal in a rake shall be as indicated in the notice of

*+auction.

2.2 The "uyer should satisfy itself himself about the 9ake fit stations destinations from the

9ailways before participation in e+%uction by rail, 7on acceptance of the programme, even

after the option e'ercised under e'tant 9ailway rules, on account of rake+fit stations

destinations being not accepted by the 9ailways shall be treated as a failure of the "uyerleading to forfeiture of relatable *M8.

26


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6. B33ng Pr%1e""

6.> The registered "idders shall be re(uired to record their acceptance after login, of the

Terms D #onditions of the e+%uction before participation in the actual "idding @rocess.

6.0 "efore participating in e+%uction, bidders are to satisfy themselves with the (uality of

coal being offered from a source.

6.2 @rospective "idders are entitled to "id for the (uantity to the e'tent of amount of *M8

for which is available with the service provider in the bidder)s account at the time of bidding.

6.6 The "uyers while bidding shall (uote their K"id priceL per ton in Indian 9upee as base

coal price on /&9/&" colliery basis, e'clusive of other charges like statutory levies, surface

transportation charges, sizingbeneficiation charges, ta'es, cess, royalty, S*8, D any other

charges as will be applicable at the

Time of delivery. These charges as well as freight etc. shall be on the "uyer)s account.

6.- The bidder has to bid for a price e(ual to or above the reserve price to secure

consideration in the concerned e+%uction.

6.; The date, time and period of e+%uction as notified in advance including closing time on

portal of service provider shall be adhered to but for the event of force majeure. owever, the

closing time of e+%uction will be automatically e'tended up to last "id time, plus - minutes,

so that opportunity is given to other "idders for making an improved "id on that item.

6. The "idder shall offer his "id price !per tonE in the increment of >1+ !9upees tenE during

the 7ormal e+%uction period. 8uring the e'tended period of first two !0E hours, the "idder

shall offer his "id price in the increment of 9s.01+. "eyond this e'tended period of two

hours the bid price increment would be

9s. -1+ !9s./iftyE only.

6.3 Chile maintaining the secrecy of "idder)s identity, the web site shall register and display

on screen the lowest successful "id price at that point of time. The system will not allow a

"idder to "id in e'cess of his entitled (uantity as per his *M8. owever once a "idder is

out+bided by another !in part or fullE the particular "idder shall become eligible for making

an improved "id.

6.4 /ollowing criteria would be adopted in deciding the successful biddersJ+

!aE @recedence will be accorded to the highest bid price in the descending order !>, 0, 2

and so onE as long as the offered (uantity is available for allocation.

!bE If two or more buyers bid the same highest price, precedence for allotment will be

accorded to the buyer who has placed the bid for the higher (uantity.

!cE In case two or more buyers bid the same price and the same (uantity, precedence will be

given to the buyer who has accorded his bid first with reference to time.

-. P%"0 e2A/103%n 6r%1e""-

27


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-.> *ach successful bidder will be intimated through e+mail SMS by the Service @rovider on

the same date after the closure of e+%uction. owever, it will be the responsibility of the

bidder to personally see and download the result displayed on website, on the same date after

close of e+%uction.

-.0 The successful bidders after the e+%uction, will be re(uired to deposit coal value with theconcerned coal company, within a period of seven working days, after the date of closing of

e+%uction. Seven working days would be reckoned as applicable to the respective Subsidiary

#oal companies) office where the paymentdeposit is re(uired to be made.

-.2 *(uivalent amount of *M8 of successful bidder corresponding to successful bid (uantity,

shall be blocked and will be transferred to #oal #ompany by the service provider along+with

the bid sheet in respect of successful bidders.

;. Ter4" %5 6a74en0-

;.> The coal value to be deposited in advance by the successful bidders shall be computedand deposited after making provision for the *M8 amount for the successful bid (uantity

already transferred by the service provider to the subsidiary company. In other words, the

coal value to be deposited and *M8 amount together, shall be e(uivalent to the >11 coal

value.

;.0 *M8 amount shall not be treated as an adjustment towards the coal value but would

stand converted into a Security 8eposit) for performance of the bidders towards completion

of the said transaction.

;.2 The above security deposit !as converted from the *M8 amountE would be adjusted as

coal value, only after completion of lifting of coal covered under coal value paid, e'cluding

security deposit. owever, in the event of default in performance by the bidder, the provision

of forfeiture of the Security 8eposit) !as

converted from the *M8E as stipulated, would be applicable.;.6 In case of road supplies,

once the coal value is deposited by way of demand draft pay order, drawn in favour of the

concerned coal company, along+with the debit advice issued by the bank, certifying that the

88pay order has been issued, by debiting the account of the concerned "uyer, Sale8elivery

orders shall be issued within seven days by the coal company after encashment of buyer)s

financial instrument. In case of successful bidders, if the coal value is deposited for less than

the allotted Ruantity but not below -1 of the allotted (uantity or, -1 ton whichever is

higher, the coal company shall accept the payment for the said amount and forfeit the *M8for the failed (uantity. owever if the buyer fails to deposit the coal value for at least -1 of

the allotted (uantity or -1 tons whichever is higher then the entire *M8 of the allotted

(uantity shall be forfeited.

;.- owever, a successful bidder whose allotted (uantity is only -1 tons will be allowed to

deposit coal value for minimum 41 i.e. 6- tons within the stipulated period of days

without which the amount shall not be accepted. In such event they shall be permitted to

deposit the balance fractional amount, limited to >1 of the total coal value of -1 tons,

within the subse(uent period of 2!threeEworking days. In spite of this, if they fail to deposit

full coal value of -1 tons !minimum bid (uantityE, *M8 for entire -1 tons shall be forfeited.

2'


29/50

;.; In case of rail borne supplies, there shall be two options available. Chile submitting

program, the bidder at his option can deposit >11 "< on the prescribed format from the

buyers own account or else may deposit >11 amount through demand draft pay order,

drawn in favour of the concerned coal company, along with the debit advice, issued by the

bank certifying that the 88pay order has been issued by debiting the account of the

concerned "uyer.

;. In case of "uyers who have booked their rail programme through "


30/50

. &verloading D :nder loadingJ

>E %ny penal freight for overloading charged by the 9ailways for any consignment shall be

payable by the @urchaser. owever, if overloading is detected from any particular colliery,

consistently during three !2E continuous months, on due intimation from the @urchaser to this

effect, the Seller undertakes to take remedial measures.

0E %ny idle freight for under+loading below the stenciled carrying capacity, as shown on the

wagon, for


31/50

4.2 If the "uyer cancels the order9ake after booking, the *M8 9s.011+per ton shall be

forfeited for the rake cancelled.

>1. Re5/n %5 C%a! >.0 %ll terms and conditions of Scheme are subject to force majeure conditions as

applicable.

>>.2 "idders must always ensure to keep their email address valid. In any case "uyers can

not be absolved from fulfilling the responsibility of compliance of any of the terms and

conditions herein including payment terms due to non+receipt of emails from the Service

@rovider.

>>.6 "idders must be e'tremely careful to avoid any error in bidding !whether typographical

or otherwiseE and they are fully responsible to check and rectify their bid before submitting

their "id into the live e+%uction floor by clicking the K"idL button. 8uring the auction if the

incremental bid price is more than -1 of the immediate preceding bid price, then the system

will seek a re+confirmation from the "idder before the bid is registered.

>>.- There is no provision for bidding in decimals. The "idder shall be solely responsible for

all conse(uences arising out of the bid submitted by him!including any wrongful bidding by

himE and no complaint representation will be entertained by the Service @rovider#oal

#ompany in this regard.

>>.; The decision of the 8irector+In+#harge of Marketing of #I$ #oal

#ompany in matters related to this e+%uction shall be final and binding on the bidders

"uyers.

>>. Ruantity mentioned in notice are only indicative and may undergo a change dependingon factors like actual production of coal, bottlenecks in coal transportation etc.>>.3 There will

not be any joint third party sampling facility e'tended to any buyer. 9efusal on account of

non+suitability and or sub+standard (uality for the allotted (uantity of coal shall not be

acceptable.

>>.4 #oal #ompany Service @rovider reserve the right to cancel the sale of coal under this e+

%uction from any source location in part or whole at any stage at its sole discretion without

assigning any reason thereof and no party shall have any right whatsoever to raise any claim

in that regard on that count.

31


32/50

>>.>1 #I$#oal #ompany reserves their rights to amendmodify and revise the terms and

conditions contained herein in full or in part at any point of time and no party shall have any

right whatsoever to raise any claim in that regard on that count.

>>.>> Sale under each e+%uction shall be an individual, independent, uni(ue and complete

transaction.

>>.>0 In the event of any dispute, "idder "uyer is necessarily re(uired to represent in

writing to the

TO JUNE '' THROUGH MSTC PORTAL

9*S*9B*@9I#*

&//*9 R:%7TIT= /&9 /&9C%98

*%:#TI&7 /&9 A:$=F>1 T& A:7*F>> T&T%$

R:%7TIT=

S&:9#* SI8I71

TF>1

T&

8*#F>1

A%7F>>

T&

M%9F>>

%@9I$F>>

T&

A:7F>>

OFFER B$ ROAD ( Ruantity in Metric TonnesE

> Madhuband ST$ > 9&M 0-- 0>11 0>11 6011

0 Madhuband ST$ II 9&M ;>- 6-1 6-1 6-1 6-1 >4111

2 @hularitand C 2 9&M 2>;4 0-11 0-11 -111

6 "lock+II C 6 9&M 04> 0>-1 0>-1 0>-1 0>-1 3111

- G.#hoitudih C 2 9&M 2>;4 0-11 0-11 0-11 0111 4-11

; - 0111 0111 0111 0111 >13111

Gankanee ST$ II 9&M ;>- 01-11 01-11 01-11 01-11 30111

3 Mudidih ST$ II 9&M ;>- >;0-1 >;0-1 >;0-1 >;0-1 ;-111

4 Gusunda C 6 9&M 04> 660-1 660-1 660-1 660-1 >111

>1 "araree ST$ II 9&M ;>- 111 111 111 ;-11 0-11

>> "araree C 0 9&M 61;4 60-1 60-1 60-1 60-1 >111

>0 "agdigi C 2 9&M 2>;4 --11 --11 --11 --11 00111

>2 $odna C 2 9&M 2>;4 ;211 ;211 ;211 ;211 0-011

>6 $odna C 0 9&M 61;4 0111 0111 6111

32


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TOTAL ROAD >;;;-1 >;;;-1 >;11-1 >-41-1 ;-0611

OFFER B$ RAIL

>

40111

0

Gankanee

AogtaST$ II

9&M ;>-03111 03111 03111 03111

>>0111

2

"howrah!7E

"#"6D- ST$ II 9&M ;>-3111 3111 3111 3111

20111

BCCL RAIL 36111 36111 36111 36111 22;111

BCCL TOTAL 0-1;-1 0-1;-1 0661-1 0621-1 433611

F%rar e2a/103%n

Tra5531

Traffic is converted into two categories i.e. railway and another one is roadway. "oth

are used for delivery of coal, mainly traffic is related to the railways data maintaining

of distribution of coal to the various consumers.

o 9ailway !using of rakesE+by railway receipt

o 9oadway !using of trucksE+by challan

B7 Ra3!a7-

The seniority of buyers in case of rail borne supplies shall be guided by the seniority

list as provided by the service provider based on buyer)s bids.

The (uantity allotted against each rake is indicative (uantity only and delivery shall

be made on the basis of actual weighment by the Seller at the loading end.

The validity period for seeking allotment of rake in case of rail supplies shall be 6-

days from the date of issue of consent by the coal company. &nce the rake is allotted

it shall remain valid for supply of coal as per prevailing 9ailway 9ules.

%lthough loading will be the responsibility of the coal company, but to avoid any

complaint regarding over+loading, under loading and (uality, the "uyer himself or his

authorized representative may supervise loading at the loading point. The authorized

representative must carry valid authority letter along with photocopy of Identity #ard

issued by Service @rovider.

33


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B7 R%aa7J

#oal company shall issue Sale 8elivery &rders to the successful bidders in terms of

#lause ;.6 after realisation of payment. The "uyer has to submit the option before the

issue of the Sale 8elivery &rder for movement of the coal Kwithin stateL or KoutsidestateL and the Sale 8elivery &rder would indicate the

Same accordingly. owever, the challan issued by the #oal #ompany shall indicate

the destination.

The validity period to complete lifting of coal by road shall be 6- days from the date

of issue of Sale8elivery &rder. 7o e'tension of validity will be allowed in any case.

R%a "a!e"-

9oad sales is that department maintain the schedule of e+auction. #oal distribution

through e+auction was introduced with a view to provide access to coal for such

consumers who are not able to source coal through available institutional mechanisms for

reasons like the seasonality of coal re(uirement, limited re(uirement of coal not

warranting long+term linkage etc. In the long run, it is e'pected that e+auction may help in

creating spot as well as future market of coal in the country.

Rea!3"a03%n-

9ealisation department is mainly related to consumer wise realization vis+U+vis bill

forwarding to different credit parties like power houses, Steel plant D /ertilizers plants.%ll

yhe bill which is raised at %rea level is send to realization section of koyla bhawan, which is

then processed D /orwarded to the consumers for payment. it will be more clear with the

billing information.

C%%r3na03%n-

Standing #oordination #ommittee !$ong TermE for @ower, #ement and Sponge Iron

consider re(uirement of coal of consumers at the planning stage and links the re(uirement in

the long+term perspective from a rational source after e'amining factors like (uantity and

(uality re(uired, time frame, location of the consuming plants, transport logistics,

development plan for the coal mine etc.

8uring the year 0113+14, the #ommittee has issuedauthorized $etter of %ssurance !$&%E to

a large number of consumers of the then #ore Sector namely @ower, #ement and Steel

!Sponge Iron :nitsE as detailed belowJ+

34


35/50

Na4e %5 08e

Se10%r

N/4er %5

a66!31a03%n"

a66r% 21,0;2.- MC

NCDP- Ne 1%a! D3"0r3/03%n 6%!317

In supersession of e'isting coal distribution policy for core and non core sector andother instructions issued in this regard from time to time, the government is pleased to

approve the 7#8@. The new policy is policy is as followsJ+

>.C!a""3531a03%n %5 1%n"/4er"-

the e'isting classification of consumers into core D non core has reviewed and it has

now been reviewed and it has now been decided to dispense with the same.instead,each

sectorconsumers would be treated on merit keeping in view,inter+alia,the regulatory

provisions applicable thereto and other relevant.

0.D3"0r3/03%n an 6r313ng %5 1%a! 0% 355eren0 1%n"/4er"#"e10%r(")-2

0.>re(uirement of defence sector and railways will be met in full at notified price ,as

present.

0.0 power utilities including Independent @ower @roducers !I@@sE#aptive @ower

@lants !#@@sE and /ertilizer Sector.

>11 of (uantity as per normative re(uirement of the consumers would be considered

for supply of coal, through /uel Supply %greement !/S%E.and power plants coal

re(uirements has already accepted by Ministry of coal and linkage$etter of

%ssurance!$&%E approved as well as future commitments.

35


36/50

0.2 other consumers J+

- of (uantity as per normative re(uirement of the consumersactual users would be

considers for supply of coal through /S% and rest 0- by e+auction.

0.6 coking coal to integrated steel plantsJ+

supply of coal to steel plants would be based on /uel Supply %greements !/S%sE.theprice of coal would be on the basis of import parity pricing with suitable adjustment for

(uantity. This system is already in vogue.

2.C%n"/4er 3n "4a!! & 4e3/4 "e10%r-2

The state governments are re(uested to work out genuine re(uirement of such units. In small

and medium sector like smokeless fuel, cokes etc.the state government genuine consumption

D monitor use of coal. The present capacity is also enhanced to 6011 tons per annum.whosere(uirement is less than 6011 tons per annum and otherwise not having any access to

purchases of coal or conclude /S% for coal companies.

The unmarked (uantity would be distributed by state govt. agencies e.g. 7ational

#o+operative #onsumer /ederation !7##/E 7ational Small Industries #orporation

!7SI#E.the agency would be entitled to charge actual freight and up to - margin as service

charge over and above the basic price charged by #oal #ompany from their consumer.

2.0 the (uantity to be allocated to this sector may be reviewed on the basis of their

performance in the beginning of every year, allocation of this (uantity amongst thestates would be done on the basis of their consumption pattern in the past.

6. 9eplacement of linkage system by fuel supply %greement !/S%sEJ

The linkage system will be replaced with a more transparent bilateral commercial

arrangement of enforceable /S%s.%ll the e'isting valid linked consumers whose

linkageM@R during the year 011;+011 was 6011 tonnes or more would have to enter

into /S%swith coal companies not after than si' months from a date to be notified by

#I$. The other valid linked consumers will have the option to opt out of /S% regime or

enter into /S% within si' months, &n opting cut they may access their coal re(uirementthrough various channels like e+auction, distribution network of state nominated agencies

etc./aliure to enter into /S% will result in discontinuation of supplies at fi'ed prices.%ll

e'isting /S%s as prevailing on the date of introduction of this policy,will

continue.owever,they would need to be modified in view of the new provisions.

-.P%!317 5%r Ne C%n"/4er"-2

The $etter of %ssurance !$&%E to be issued now pursuant to the new policy will have a

validity of 06 months for consumersapplicants of power utilities.#@@s D I@@s and >0

months for other consumers instead of 21 months as earlier. The allotted of $&% wouldbe re(uired to fulfill certains stipulated conditions and meet the milestones with the

36


37/50

period and their upon approach coal companies for entering into /S% Such /S% would be

completed within three months./urther with a view to ensure that only serious consumer

approach for $&% they would be re(uired to furnish an K*arnest Money

8epositL!*M8E.*M8 can be in the form of bank guarantee and would stand discharged

once /S% is conclude with the stipulated period however on failure the *M8 willforfeited.

-.0 /or new commitments including short term tapering commitment to consumer having

captive coal block, power utilities, #@@s, I@@s /ertilizer etc would be issued and enforceable

$&% for apply of coal and their after they would be entitled to enter to /S% with the

stipulated time subject to fulfillment of certain condition to be stipulated therein.#I$ will

issue $&% after approval of applications by the standing $inkage committee!$ong+

termEowever for other sectors the task of issuing letter of assurance will be the

responsibility of #I$.

;. $etter of %ssurance for 7ew #onsumers

;.> 7ew consumers for central power utilities ,#@@s independent power producers

fertilizers cement and sponge iron units may be issued $&%, based on prevailing norms

and recommendation of administrative ministry which may inter %lfa have regard to $&%

linkage already granted to the consumer of specific sector. *'isting capacity re(uirement

for capacity adding during a plan period etc.

;.0 all other consumer may be issued $&% by #I$ based on the prevailing norms and on

the recommendations of the administrative ministry. If re(uired the purpose of

processing certification of the coal re(uirement of the individuals consumers if there is

no prevailing norms of such category of consumersector.

;.2$&% will be issued by the #I$ to the applicant consumers conse(uent upon payment

of *M8 to the coal company the amount of *M8 could be initially kept - of the value

of annual coal re(uirement.

;.6 $&% will be valid for a period of >006 months as applicable, during which the

applicant consumer will be re(uired to achieve the milestones pertaining to his

projectplant as stipulated in the $&%, failing which $&% will stand terminated

automatically and *M8 would be forfeited.

;. FSA" 308 ne 1%n"/4er"-

.> on successfully achieving the milestones stipulated in $&% coal companies would

e'ecute /S% with the applicant consumer covering commercial arrangement for supply of

coal. /S%s would be, inter+alia, based on Take or @ay) principle.

.0 The /S%s would cover >11 of normative coal re(uirements of the power utilities,

including independent power producers !I@@sE and captive power plants!#@@sE,fertilizers

units and - of normative coal re(uirement of other consumers.

37


38/50

.2 %s and when /S% come into e'istence, both parties viz .coal companies and

consumers would *ndeavour to enter into /uel Supply and Transport

%greement!/ST%Ewhich would be a tripartite agreement involving the coal supplier, the

coal consumer and the logistic provider i.e. railways. The /ST% may firstly be made

applicable to major consumers like power, cement and steel sector and could be e'tendedto other consumers in a phased manner.

R%!e %5 S0an3ng L3n9age C%44300ee-2

The e'isting S$# !$TE will continue to recommend issuing of $&% in respect of utilities

including #@@s D I@@s, cement and sponge iron including steel, as is being done at

present. It may also perform other functions as per its terms of reference for coal sector as

a whole. The issuance of $&% to consumers of other sectors will be directly deal with

#I$ on the basis of recommendation of nodal ministry.

:. D3"136!3ne an e1%n%47 3n 1%a! /"e

#oal is no longer an essential commodity but it is still considered a scarce fuel and hence

it must be used efficiently and economically. The consumers getting coal through /S%

would be e'pected to use it efficiently so as not to waste this scarce resource and hence

norms and efficiency compliance should be carried out diligently by the concerned

designated authoritiesagencies. This would also re(uire that coal supplied should not be

misused or diverted by /S% holders to others. The e'isting norms wherever being made

applicable for deciding linkage (uantity etc., would be reviewed in consultation with the

nodal ministry concerned, and revised norms would be made applicable for working out

the satisfaction level, wherever applicable.

'>. E2A/103%n %5 1%a!

#oal distribution through e+auction was introduced with a view to provide access to coal

for such consumers who are not able to source coal through available institutional

mechanisms for reasons like the seasonality of coal re(uirement, limited re(uirement of

coal not warranting long+term linkage etc. In the long run, it is e'pected that e+auction

may help in creating spot as well as future market of coal in the country.

Thus a fresh scheme of *+auction will be introduced subject to, inter+alia followingconditionsJ+

%ny buyer will be entitled to buy coal under e+auction.J+

There shall not be any Kfloor priceL in e+auction, owever, coal companies may

be allowed to fi' an undisclosed reserve price not below the notified price.

@rogramme of e+auction should be announced well in advance and be given wide

publicity to all consumers who intend to participate.

%t the beginning of the financial year #I$ shall declare a programme on sale of

coal through e+auction indicating the (uantity and (uality of coal to be madeavailable through auction during all the four (uariers from different coal

3'


39/50

companiescoalfields.

In order to address the concerns of such industrial consumers who wish to have an

assured supply over a long period, say one year, under e+auction so as to plan their

annual production etc, #I$ will earmark affi'ed (uantity which will be provided

to highest bidderbidders as per bidder)s re(uirement over the period of the bid. "ased upon above guidelines and modalities a revised e auction scheme would be

introduced by #I$ within one month around >1 of estimated annual production

of #I$ would initially be offered under e+auction and the (uantity to be offered

under e+auction would be reviewed from time to time by ministry of coal.

>>.Tran"303%na! 6r%


40/50

modified $&% containing

stipulated terms and

conditions.for other

categories similar

conditional $&% can beissued by #I$ if re(uired.

bE> year *'isting system of meeting

the /S% (uantity would

continue.

@ara .> 0 month

@ara >1 > month e+booking to be e'tended in

the interim.

er3531a03%n %5 er"0 83!e n%n21%re "e10%r 1%n"/4er"

#I$ would undertake verification of such consumers, in a time bound manner either

directly or through an agency, so as to check the veracity of their claim of being bonafide

consumers of coal D there after act accordingly.

In respect of those consumer who are not found to be bonafide.coal companies can

cancel their allocation.

C%46ara031- no. of operating mines out of which 33 are underground

mines, > are opencast mines.

Total proved reserve in the state of Cest "engal is >>.602 billion ton and 6.>12 billion

tone is in the State of Aharkhand.

*#$ has earned highest gain over notified price !9s. >33 croreE from e+auction during

the year 0113+14, but the gain over notified price in 0114+>1 was only 4>.;1.

O


41/50

"rown coal is found in Bictoria and South %ustralia, and is of lower (uality due a

higher ash and water content. %s a result Bictoria adopted 401s to utilize the brown coal reserves of the $atrobe

Balley. Today there are three open cutbrown coal mines in Bictoria used for baseload

power generation

Pr%/103%n 3n CANADA

%ccording to the 01>1 "@ Statistical *nergy Survey, #anada had end 0114 coal

reserves of ;-3 million tons, 1.4 of the world total.

#anada had 0114 coal production of ;0.42 million tons, 1.4; of the world total.

#anada had 0114 coal consumption of 0;.6 million tons oil e(uivalent, 1.3 of the

world total.

The #anadian coal industry plays an important role in the #anadian economy, both as

a mining industry and as an energy provider

#anada is a major coal producer and consumer, with, according to the 0113 "@

Statistical *nergy Survey, end 011 coal reserves of ;-3 million tons.

C%a! 6%er 3n C83na

The Pe%6!e" Re6/!31 %5 C83nais the largest consumer of 1%a!in the world,

and is about to become the largest user of coal+derived electricity,

generating >.4- trillion kilowatt+hoursper year, or ;3. of its electricity from coal

as of 011; !compared to >.44 trillion kilowatt+hoursper year, or 64 for the:SE

ydroelectric power supplied another 01. of #hinaFs electricity needs in 011;.

Cith appro'imately >2 percent of the worldFs proven reserves, #hina has enough coal

to sustain itseconomic growthfor a century or more even though demand is currentlyoutpacing production.

NEWELAND COAL

The #oal %ssociation of 7ew ?ealand represents the interests of over 4- of 7ew

?ealandFs coal producers and industry users. The %ssociation liaises with the


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Ana!7"3" %5 In5%r4a03%n

%nalysis of /actors responsible for losses

uge losses since

Inception

7#C%+ BI without

/inancial Support

:nder Investment

in *MM

%verage age of e(pt goes beyond rated life

8ecline in #apital :tilization to ;>

8ecline in production /urther losses Staggering $iabilities.

SWOT ana!7"3"-2

STRENGTH

Major producer of coking coal

$ess e'pensive in open cast production in compare to other

WEAKNESSES

#oal has been viewed as an industry that is faced with the risk of being abandoned

due to the alarming issues of climate change, carbon emission concerns and energy

sustainability.

This has been prompting increased usage of alternative sources of energy generation,

like wind, solar and nuclear power.

Chile the production of coal plants has slowed to curb emissions, the coal industry

should see the profits continue to roll in.

Solar and wind power are e'pensive, and nuclear power has issues regarding its

acceptance as a major power source.

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The cap+and+trade system may pose long+term problems for the coal industry as it

would increase the cost of coal, thereby decreasing its competitiveness as an energy

source !and decreasing demand for itE and would force businesses to use less reliable

and more e'pensive forms of energy.

OPPURTUNIT$

&pportunity of build up nation through employing candidates,

Towards using new techni(ues for production of coal.

THREATS

@olitical constraints appear to be delaying, if not altogether eliminating, the threat of

major environmental regulatory overhaul, a net positive for the coal industry.

I""/e an 18a!!enge" 5a1e 7 CIL 0% (B.C.C.L)

#hairman, #I$ advised #M8, "##$ to e'plore the scope of enhancing coal production level

beyond the set target of 03 MT to 03.2 MT in the year. #M8, "##$ agreed to e'plore the

possibility and make all out efforts in this regard. e however re(uested help from theMinistry regarding increase in railway rakeswagon and setting up of project office of

#hinese #ompany ?MA. In this connection, it was decided that Ministry of #oal shall

!iE take up the matter with Ministry of 9ailway for enhancing the supply of wagons,

!iiE Take up the matter with Ministry of ome %ffairs for obtaining the clearance

from 9"I for opening the project office of ?MA !#hinese #ompanyE in India.

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CHAPTER +

ANAL$SIS & INTERPRETATION

Ana!7"3" & In0er6re0a03%n-2

"harat #oking #oal $td !"##$E generally has a numbers of activities. To complete this

activity within the time the organization break down this activity into different structures

namely 9, Marketing and Material Management. Sales and Marketing helps "##$ to

complete the task which is necessary for the organization. The different activities of Sales

and Marketing are Sales control !e+auctionE and @lanning, Traffic, 9oad sales, 9ealization,

Sales %ccounts and #oordination.

*+%uction is the major cause by which "##$ get profit, otherwise upto 0116 "##$ got

loses. %nd after 0116, getting coal is not so simple as earlier, because of /S% !/uel Supply

%greementE. There are >2 rules in /S% to fulfill for getting coal. ence for small company

don)t get coal easily as earlier. It is the only cause in which on 01>> "##$ got profit about

9S.>>11 core. &nly power plant, steel plant, fertilizer etc which are organizations of


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NUMBER OF BIDDER IN E2AUCTION IN CIL FOR MARCH >'>

C#L 5'/0CCL 24/

CCL 1-/

%CL '/

NO. OF BIDDER

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TOTAL SALES IN E2AUCTION B$ ROAD AND B$ RAIL FOR THE

PERIOD JUL$ '> TO JUNE '' THROUGH MSTC PORTAL

(" 44/

#L 56/

Sales

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CHAPTER ,

CONCLUSION

"##$ is one of the best companies under #I$ and only coking coal in India which is found

in 8hanbad. It is helpful in economic development of country, and builds the relation with

different sectors which have the demand for the coal. *+%uction is a part of marketing of

coal. Those who have not fulfill the terms and condition of /S%, they can buy coal on the

basis of *+%uction. %s *+%uction have no need to fulfill the >2 principle of /S%, hence it is

easier way to buy coal. In addition, if "##$ fulfill 41 demand or above 41 demand of

any customer then the company gives incentive as a gift to "##$. Thus *+%uction which is

part of Marketing helps "##$ to get profit.

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LIMITATIONS-

Time period of the project was 3 weeks, which may not be enough to understand the

whole market.

8ue to &rganisation)s #onfidential matters there were some data which was not

provided by the &rganisation.

Bery limited field survey has been done.

RECOMMENDATIONS-

T8e BCCL "8%/! a!a7" 9ee6 3n 43n a%/0-2

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>. Geep attention towards Marketing.

0. :se (uality coal.

2. Increasing price of coal.

6. #hanging the method of production.

-. :sing good technology and machinery.

;. $ink with market with directly to economy.. #hanging the (uality of coal.

BIBLIOGRAPH$-

Re5eren1e- >.Marketing Management N @hilip Gotler, Geller, Aha+ >2thedition

@age -1+-2

4*


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@age >43+00>

2. 9esearch Methodology N #. 9. Gothari +0ndrevised edition

@age 2-+2

@age 4-+>0>

2. www.ccl.go).in

6. www.coalindia.in
http://www.bccl.gov.in/http://www.coalindia.in/http://www.bccl.gov.in/http://www.coalindia.in/

ism sip project

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