Coal India originally incorporated as a private limited company with the name of ‘Coal Mines Authority Limited’, under the Companies Act, 1956, as amended (“Companies Act”) on June 14, 1973, pursuant to a shareholder’s resolution dated October 15, 1975 and approval of the Ministry of Law, Justice and Company Affairs dated October 21, 1975, got its name changed to ‘Coal India Limited.’ It received a fresh certificate of incorporation consequent upon change of name dated October 21, 1975 from the Registrar of Companies, West Bengal (“RoC”). Thereafter, pursuant to a resolution passed by the shareholders dated February 16, 2010 and approval of the Ministry of Coal, the Company was converted into a public limited company with effect from February 24, 2010.
The company being established in 1973 is wholly owned by the GoI. Its coal production operations are primarily carried out through seven of its wholly-owned Subsidiaries in India. In addition, another wholly owned Subsidiary, CMPDIL, carries out exploration activities for its subsidiaries and provides technical and consultancy services for its operations as well as to third-party clients for coal exploration, mining, processing and related activities.
The company has established a joint venture, ICVL, with SAIL, NTPC, NMDC and RINL for the acquisition of coal assets outside India. SAIL and Coal India each holds a 28.7% equity interest in ICVL and NTPC, RINL and NMDC each hold a 14.3% equity interest. In addition, it has also entered into a joint venture with NTPC to establish CIL NTPC Urja Private Limited ('CIL NTPC Urja'), a company formed primarily to jointly undertake the development, operation and maintenance of certain coal mine blocks in Jharkhand, and integrated coal-based power plants. NTPC and the Company each hold 50.0% equity interest in CIL NTPC Urja. It has also entered into an agreement with DVC and BEML to acquire the assets of MAMC at Durgapur, which manufactures a range of mining equipment specifically for underground mines. The company and DVC each hold a 26.0% equity interest in MAMC and BEML holds the remaining 48.0% equity interest. It has also entered into a memorandum of understanding with GAIL (India) Limited (“GAIL”) in January 2008 ('GAIL MoU') for the joint development of a surface coal gasification project for the production of synthesis gas to be used as a feedstock for fertilizer production. Further to the GAIL MoU, it entered into a memorandum of intent in December 2009 with GAIL and Rashtriya Chemicals and Fertilizers Limited (“RCF”) to jointly set-up coal gasification based ammonia urea and ammonium nitrate complex. GAIL is required to co-ordinate all preproject activities, RCF is responsible for engaging a consultant for the detailed feasibility report and technology selection services, while it is to facilitate coal availability. The company has been conferred the Navratna status by the GoI, which provides them with certain operational and financial autonomy, including for the approval of capital investment without any limit for projects in India and the formation of joint ventures or wholly owned subsidiaries within India and outside India up to 30.0% of its net worth.
As of April 1, 2010, it had total coal resources of 64,786 million tons, comprising, pursuant of ISP classifications, Proved Geological Reserves of 52,546 million tons, Indicated Geological Reserves of 10,298 million tons and Inferred Geological Reserves of 1,942 million tons. As of April 1, 2010, from the total coal resources of 64,786 million tons, 30,356 million tons had been considered for mining studies (mine planning and feasibility studies), and the remaining coal resources of 34,430 million tons had not yet been considered for such mining studies. From the 30,356 million tons of coal resources that had been considered for mining studies as of April 1, 2010, 21,754 million tons has been estimated as the Extractable Reserves.
Business area the company -
Coal India is the largest coal producing company in the world, based on the company’s raw coal production of 431.26 million tons in fiscal 2010. As of March 31, 2010, the company operated 471 mines in 21 major coalfields across eight states in India, including 163 open cast mines, 273 underground mines and 35 mixed mines, which include both open cast and underground mines.
The company also produces non-coking coal and coking coal of various grades for diverse applications. The 11 coalfields in which it conduct its most significant mining operations are the Korba, Singrauli, Talcher, IB Valley, Wardha Valley, Jharia, North Karanpura, Central India Coalfields, Raniganj, Rajmahal/Deogarh and East Bokaro coalfields.
Its customers include large thermal power generation companies, steel and cement producers and other industrial companies in the public and private sector with many of whom the company has long-standing relationships. Most of the company’s coal is used in the thermal power sector in India. NTPC, a public sector power generation company and utility, has historically been its most significant customer, and the company’s five largest customers are all public sector power utilities.
The company has nine direct Subsidiaries and two indirect Subsidiaries. They are as follows:-
1. Coal India Africana Limitada.(CIAL)
The following are its indirect Subsidiaries, which are held through its Subsidiary, Mahanadi Coalfields Limited:
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