Coal India Limited (CIL)

Coal India Limited (CIL)

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Coal-India-Limited-Cover-Story

Maharatna PSU with largest CSR budget judiciously spent.

CIL, a Maharatna CPSE, the largest coal producer in the world is responsible to the environment of India by virtue of its very role of digging coal & affecting the environmental conditions of the country.

CIL is duly implementing CSR projects all over the country, matching with the local needs to win the confidence of the public, to facilitate the mining activities through its subsidiary companies scattered all over the country.

Coal India Limited (CIL), a Maharatna Central Public Sector Enterprise, and Government of India Undertaking, is a largest coal producer in the world. Maharatna status is conferred by the government of India to select state-owned enterprises to empower to expand their operations and emerge as global giants. CIL being coal mining corporate comes under the purview of ministry of coal, government of India. Company has made significant contribution energize entire India and creating social-economic development across the country since independence. With headquarters, at Kolkata; West Bengal they have their significant footprints all over the nation. They producing about 84% of the entire coal output and caters to the coal requirement of the Power, Cement and Steel sectors of the country.

VISION

To emerge as a global player in the primary energy sector committed to provide energy security to the country by attaining environmentally & socially sustainable growth through best practices from mine to market.

MISSION

To produce and market the planned quantity of coal and coal products efficiently and economically in an eco-friendly manner with due regard to safety, conservation and quality.

VALUES

Our core values include equality, justice, transparency and accountability. These are practiced in all spheres of our business activities. As we put emphasis on dual development, the values are monitored for the entire workforce by five Central Trade Unions. Wherever the values are not being followed, the issue is discussed with the management to reach a mutually agreed upon solution. These solutions often have necessary corrective measures that are taken if required.

PRODUCTS AND SERVICES

COKING COAL:

These coals, when heated in the absence of air, form coherent beads, free from volatiles, with strong and porous mass, called coke.

  • These have coking properties
  • Mainly used in steel making and metallurgical industries
  • Also 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 adequate 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

NON-COKING COAL:

These are coals without coking properties.

  • Mainly used as thermal grade coal for power generation
  • Also used for cement, fertilizer, glass, ceramic, paper, chemical and brick manufacturing, and for other heating purposes

WASHED AND BENEFICIATED COAL:

These coals have undergone the process of coal washing or coal beneficiation, resulting in value addition of coal due to reduction in ash percentage.

  • Used in manufacturing of hard coke for steel making
  • Beneficiated and washed non-coking coal is used mainly for power generation
  • Beneficiated 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.

  • Used for power generation
  • Also used by domestic fuel plants, brick manufacturing units, cement plants, industrial plants, etc.

REJECTS:

Rejects are the products of coal beneficiation process after separation of cleans and / or middlings, as a fraction of feed raw coal.

  • Used for Fluidized Bed Combustion (FBC) Boilers for power generation, road repairs, briquette (domestic fuel) making, land filling, etc.

CIL COKE / LTC COKE:

CIL Coke / LTC Coke is a smokeless, environment friendly product of the Dankuni Coal Complex, obtained through low temperature carbonisation.

  • Used in furnaces and kilns of industrial units
  • Also used as domestic fuel by halwais, hotels, etc.

COAL FINES / COKE FINES:

These are the screened fractions of feed raw coal and LTC coke / CIL Coke respectively, obtained from the Dankuni Coal Complex and other coke oven plants.

  • Used in industrial furnaces as well as for domestic purposes

TAR / HEAVY OIL / LIGHT OIL / SOFT PITCH:

These are products from Dankuni Coal Complex using low temperature carbonisation of non-coking coal in vertical retorts.

  • Used in furnaces and boilers of industrial plants as well as power houses, oil, dye, pharmaceutical industries, etc.

ESSENTIAL FEATURES OF CSR STRATEGY

CIL has its CSR policy approved by CIL Board. CSR policy sums up the strategy which CIL follows in the implementation of its CSR activities. The key features of the policy are as follows:

  1. Areas to be covered Poor and needy sections of the society are the primary beneficiaries and society at large is the secondary beneficiary of the CSR activities of CIL. CILs subsidiaries spend 80% of their CSR fund for a specific Financial Year in and around 25 kms. of their project sites / mines / area HQ / company HQ. The rest 20% of the fund is spent in the state (s) of operation. CIL (HQ) can spend its CSR funds in whole of India including the areas under the subsidiary companies.
  2. Fund Allocation
    • For CIL (HQ) 2% of the average net profit of three immediately preceding financial years or Rs. 2.00 per tonne * Consolidated coal production of immediately preceding financial year, whichever is higher
    • For subsidiaries of CIL – 2% of the average net profit of three immediately preceding financial years or Rs. 2.00 per tonne * Companys coal production of immediately preceding financial year, whichever is higher
  3. Scope as per the Schedule VII of Companies Act, 2013 Implementation In house, through NGOs/CBOs, state and central govt. agencies, autonomous institutes
  4. Monitoring and Impact assessment Monitoring is being done during project implementation. Impact assessment and other third party assessments are being done after project completion.
  5. Sustainability At the time of project sanctioning and implementation, emphasis is given on sustainability so that the project benefits the beneficiaries in the intended manner.

CSR ACTIVITIES OF CIL

Premashraya – A home for underprivileged cancer patients

Objectives

  • Immediate objective is to provide accommodation for free or at highly subsidized rates to underprivileged cancer patients and their families that is neat, clean and hygienic. Those patients, without this support, would have landed up on streets of Kolkata for shelter, while undergoing their treatment, which would have further lead to infection, lack of hygiene, malnutrition, improper attention and care
  • The objectives include giving a sense of security and hope to the patients and thus aim to reduce the treatment dropout rates. Vocational training and education will also be provided. Special cancer awareness sessions are aimed at preventing and early detection of the disease.

Parameters of selection

Indias National Cancer Registry reveals that a significantly large number of cancer cases are from Eastern India, with the highest incidence in some specific cancers in the region. Registration data of the past few years at various prominent cancer hospitals indicate that 25 to 30% of the patient registrations are from the eastern and north-eastern parts of the country. Hence, Kolkata is chosen for the intervention as after Tata Medical Centre (TMC) was founded, a large chunk of patients from these geographical regions come to TMC for cancer treatment.

Most underprivileged people find it hard to arrange for accommodation and often resort to unhygienic places in some cases to streets also which negatively affects their ongoing treatment. Hence, the poor and underprivileged cancer patients are the targeted beneficiaries.

Healthcare is chosen as a thematic area because cancer is increasingly becoming a leading cause of death in India with over 10 lakh new cases every year and over 7 lakh deaths every year.

Impact

Premashraya has helped the cancer patients visiting TMC immensely. Now the patients do not have to worry for the accommodation during their stay. State of the art facilities for stay, cooking, washing etc give patients a homely feeling. Emergency treatment availability is also a positive point cited by the patients. Efforts are underway to conduct third party assessment.

Replicability, scalability and innovations in the Premashraya Project

CIL has signed an MoU with TMC to upgrade the existing cancer facilities or to set up new facilities at its central hospitals which will help in screening patients at pre cancerous or early stages in these medically underserved areas. Similar homes of lesser capacities can be replicated along with cancer hospitals in other cities too.

FLAGSHIP PROJECT

Holistic Development of Forty Villages in Purulia District, West Bengal

Objectives

  • Energy: Installation of 11,483 Integrated Domestic Energy Systems (IDES) (An IDES includes two components : One Solar Household Light (SHL) and one Improved Cook Stove (ICS)) in 40 villages and installation of 100 solar street lights at community places of these villages.
  • Agriculture: Promotion of livelihood activities of 1250 households through different agriculture and greening activities and also to scale up innovative income generating activities that can be undertaken by poor farmers in their villages with resources at their command.
  • Sanitation: Construction of individual household toilets in 40 villages in conjunction with the Govt. programme to make the villages Open Defecation Free (ODF).
  • Knowledge cum Recreation Centers (KRCs): Creation of 40 KRCs in 40 schools for children with the aim of imparting them basic computer education and providing them contemporary knowledge through books on General Knowledge also to develop their reading habits.

Parameters of selection

Rural development project thematic area provides the scope of working holistically for the development of a rural area and transcends the sectoral boundaries. Hence, it was decided to choose this thematic area.

Beneficiary group for Energy, Agriculture and KRCs is the whole population of these villages. Since the problems which these intervention intend to solve are uniform for whole of the population of the village, the whole village population was selected as the beneficiary group. The agriculture activity covers 1250 households in 10 villages. These were shortlisted based on the primary occupation being agriculture, availability of land and favourable soil conditions for the intervention. Other intervention in this category are also based on these factors.

Purulia district is one of backward districts of West Bengal as per the erstwhile Planning Commission. Also, a part of the district close to the two blocks of project implementation lies close to the coal field areas of Eastern Coalfields Ltd. (ECL), a subsidiary of CIL.

Impact:

  • Energy: People are now able to extend their work hours till late night due to the solar lights, women are having better quality of life due to Improved Cook Stoves and Solar Street Lights have helped the society at large with better illuminated streets at night.
  • Agriculture and Greening: All the interventions have helped in increasing the household income of the farmers and more importantly, farming is being seen as an income generating activity, not as a mere sustenance activity.
  • Sanitation: Villages are becoming ODF and simultaneously, the people are now more aware about the importance of proper sanitation.
  • Knowledge cum Recreation Centers (KRCs): Students from primary school are well versed with basic computer applications and are now more interested in teaching. Moreover, the local trainers hired for training the students have got an employment opportunity.

Replicability, scalability and innovations in the Holistic Development Project

Replicability: All the interventions are replicable but some interventions like System of Rice Intensification (SRI), Fish farming, Handicraft and Pattal Dona Making can be readily replicated in other villages of the district also due to favourable weather and soil conditions and raw material availability.

Scalability: The Energy, Sanitation and KRC interventions exhaustively cover the 40 villages i.e. all the households/schools have been covered. However, under the Agriculture component, 1250 households in 10 villages have been covered and the activity can be scaled up to cover other villages also.

Innovations: Improved Cook Stove (ICS) is an innovative stove which produces less smoke and ignites fuel quickly. Less smoke improves the quality of life of women and reduces the chances of lung diseases in future while quicker combustion helps in use of less fuel and hence adds to household savings. Also, SRI has been used commercially for the first time in these villages.

CSR TEAM ORGANIZATION

Each subsidiary of CIL as well as CIL (HQ) have their separate CSR departments to implement CSR activities. The overall guidance of CSR is provided by CIL and subsidiary companies Boards and the Board Level CSR Committees (having three board level executives, with at least one independent director). General Manager / Chief Manager rank people are heading the CSR departments. There are CSR committees at HQ and areas which have executives from other disciplines also to better scrutinize the CSR projects. CIL is the only Maharatna Company which has recruited 120 executives specialising in CSR related disciplines.

CSR BUDGET SPENT

The CSR budget and expenditure of CIL during the last three years is furnished in the table below:

Financial Year Statutory Provision Expenditure
2015-16 465.23 1076.07
2016-17 442.75 489.68
2017-18 390.55 504.51*
*subject to audit

EMPLOYEE ENGAGEMENT PROFILE

CIL has full time employees working in CSR departments. Other than those employees, CIL also encourages other employees to volunteer for CSR activities. Executives from departments such as Civil, Medical, Finance, Personnel, Marketing are engaged in the monitoring of CSR activities. CIL also organizes workshops, seminars and other events to sensitize its employees about the CSR activities of CIL. A new initiative named SwachhtaPakhwada has been started since FY 16-17 in which majority of the employees of CIL are involved in cleanliness and awareness generation activities to spread the message of Cleanliness and Swacch Bharat.

OUTCOME AND IMPACT OF CSR ACTIVITIES OF CIL

CILs CSR activities have positively impacted the society in various fields. CSR activities of CIL have helped in creation of basic infrastructure, have made people aware on key issues such as healthcare and sanitation, helped people fight fatal disease such as Cancer and Thalassemia and have made people employable through skill training. CIL has also contributed to women empowerment, environment conservation and welfare of armed forces veterans and war widows, Divyangjan and the elderly people. Providing good education facilities has been one of the core areas of CSR activities of CIL. SCs and STs form a sizeable chunk of beneficiaries of CSR activities of CIL hence providing them opportunities for development. Overall. CSR activities of CIL and its subsidiaries have helped the poor, downtrodden and needy sections of the society taking a leap towards their holistic development.

STRATEGIC CONNECT OF THE CSR ACTIVITIES WITH THE CORE BUSINESS OF CIL

CIL has adopted CSR as a strategic tool for sustainable growth. For CIL, CSR in the present context means not only investment of funds for socially beneficial activities but also integration of social processes with business processes. Even much before CSR became legally mandatory, CIL was fulfilling the aspirations as a good corporate citizen through its well defined Community Development Policy aimed at a radius of 8 Kms. around the project areas and mines. CIL aims at supplementing the role of Govt. in enhancing welfare measures of the society based on the immediate and long term social and environmental consequences of its business. CIL aspires to be a good corporate citizen, subscribing to the principles of Global Compact for implementation of its CSR activities.

WAY AHEAD

CIL is already spending more than the statutory requirement of 2% of profit of last three years on CSR.

In future, CIL plans to prioritize sectors for CSR fund utilization. Since CIL and its subsidiaries operate in some of the remotest areas of the country which lack in basic infrastructure, CILs priority will be to develop basic healthcare, water supply and education infrastructure in these areas. A significant amount of the CSR budget for a particular year (say 70%) will be utilized on these priority areas.

Moreover, CIL intends to contribute significantly to the projects of national priority. One such upcoming project is Transformation of aspirational districts coordinated by NITI Aayog. Under this programme, 115 districts have been identified for undertaking development projects at a fast pace. Out of these 115 districts, CIL is operating in 13 districts. CSR is planning to undertake major works for infrastructure development and overall development of these districts through its CSR funds in the year FY 18-19.

List of CSR activities during FY 2016-17
Sr.
No.
CSR Project or Activity Identified Sector in which the Project is covered Project Location Name of Implementing Agency
State District
1 BPL Scholarship Education West Bengal Kolkata NA
2 Financial assistance for purchase of emergency ambulance service fully equipped with medical facility in South 24 Parganas, West Bengal Healthcare West Bengal South 24 Parganas Su Samannaya
3 Construction of a home for underprivileged / orphaned boys in Jharkhand Education Jharkhand Ranchi MAHER
4 Purchasing equipment for differently abled children Welfare of the differently abled West Bengal Kolkata Institute of Handicapped and Backward People (IHBP)
5 Installing 130 nos. of deep bore wells in Sidhi District, Madhya Pradesh for ensuring regular water supply Drinking Water Madhya Pradesh Sidhi DC, Sidhi
6 Construction of hostel for accomodating girls belonging to BPL and backward communities for their skill development as mid levelopthalmic assistants under Project NaiRoshni Women Empowerment West Bengal Purulia NANRITAM
7 Conducting a year long traffic awareness programme in nine traffic zones of Kolkata for public utitlity service Others West Bengal Kolkata Karmyog for 21st Century
8 Conducting eye screening and cataract operation camps to reduce avoidable blindness in rural and backward areas of the country Healthcare More than one state More than one district AnugrahaDrishti Dan
9 Financial support for infrastructure development of the school Education West Bengal Burdwan Palla Village F.P. School
10 Financial assistance for purchasing desks and benches Education West Bengal Kolkata Sisters of Charity
11 Facilitating development of physical abilities to the highest potential through regular therapy services to children and adults with cerebral palsy and other neuro-motor disabilities Welfare of the differently abled West Bengal Kolkata Indian Institute of Cerebral Palsy
12 Adoption and annual maintenance of butterfly habitat Environmental Sustainability and Conservation of Natural Resources Jharkhand East Singhbhum TATA Zoological Society
13 Financial assistance for CSR activities of CCL – Sports complex at Khelgaon (Hotwar), Ranchi Promotion of sports Jharkhand Ranchi CCL/JSSPS
14 Distribution of 12000 nos. of bicycles in Nuapada Rural Development Projects Odisha Nuapada SunebedaHll Area Development Agency (SADA)
15 Installation of Solid Waste Management Plants at prominent temples Environmental Sustainability and Conservation of Natural Resources More than one state More than one district Sri Sri Rural Development Programme (SSRDP)
16 Financial assistance for procurement of CT scan machine and cath lab equipment to provide affordable healthcare Healthcare West Bengal South 24 Parganas Liver Foundation, West Bengal
17 Financial assistance for community arsenic mitigation project in Varanasi, Ghazipur and Ballia districts of Uttar Pradesh Drinking Water Uttar Pradesh More than one district Innervoice Foundation
18 Installation of 100 hand pumps in backward districts of district Ghazipur Drinking Water Uttar Pradesh Ghazipur Uttar Pradesh Jal Nigam Ghazipur
19 Fund transfer to WCL for financial assistance to Dr. Aabaji Thatte Sewaaur Anusandhan Sanstha for National Cancer Institute, Nagpur Healthcare Maharashtra Nagpur WCL/Dr. Aabaji Thatte Sewaaur Anusandhan Sanstha
20 Financial support towards purchase of equipment for digital pathological labortory Healthcare Delhi Saket Mahaveer International
21 Financial assistance for Bone marrow transplant of 2 underprivileged children and distribution of medicines Healthcare Maharashtra Gondia District Surgeon, KTS General Hospital, Gondia
22 Imparting training to 400 persons in plastic engineering trades at CIPET, Murthal Skill Development Haryana Sonepat Central Institute of Plastic Engineering and Technology, Murthal
23 Construction of satellite eye hospital at Alwar, Rajasthan Healthcare Rajasthan Alwar SAPNA
24 Different development works in Purulia, West Bengal Rural Development Projects West Bengal Purulia TERI
25 Financial support for Himalaya Cleaning Campaign as part of the Swachh Bharat Abhiyan Environmental Sustainability and Conservation of Natural Resources More than one state More than one district Indian Mountaineering Foundation (IMF)
26 Installation of hand pumps and construction of sanitary latrines in South 24 Parganas Rural Development Projects West Bengal South 24 Parganas PraptiMahilaSamity
27 Community based integrated programme with special focus on marginalized children and youth in naxalite and insurgency affected districts of Jharkhand and Assam Rural Development Projects More than one state More than one district Prayas Juvenile Aid Centre Society
28 Empowerment of destitute, marginalized and domestic violence victims Women Empowerment West Bengal Kolkata Ankur Kala
29 Construction of public toilets for the benefit of tribal students and general public Sanitation Arunachal Pradesh Tirap Ramakrishna Mission, Narottam Nagar
30 Construction of blood bank with component separation facility at IMA, Kanpur premises Healthcare Uttar Pradesh Kanpur Indian Medical Association, Kanpur
31 Construction of 400 nos. of toilets in Sundarban area Sanitation West Bengal South 24 Parganas South Sundarban Janakalyan Sangha
32 Electrification of dining hall and kitchen with energy efficient LED lighting system providing food free of charge to underprivileged people Others West Bengal Howrah Ramakrishna Math, Belur
33 Execution of water, sanitation and poverty alleviation in Bolpur-Shantiniketan block, Birbhum, West Bengal Rural Development Projects West Bengal Birbhum Tagore Society for Rural Development
34 Installation of 44 nos. of hand pumps in Sundarban Area Drinking Water West Bengal South 24 Parganas South Sundarban Janakalyan Sangha
35 Setting up community drinking water project for the people of Bishnupur Drinking Water West Bengal Bankura Bishnupur Municipality
36 Financial support for setting up auditorium on the third floor of the museum constructed by Gaudiya Mission Others West Bengal Kolkata Gaudiya Mission
37 Installation of 275 nos. of India Mark hand pumps for the benefit of residents of Shravasticonstitutency in Uttar Pradesh Drinking Water Uttar Pradesh Shravasti Uttar Pradesh Small Industries Corporation Ltd. (UPSICL)
38 Installation of escalators at Suburban railway stations in Mumbai Others Maharashtra More than one district WCL/Indian Railways
39 Support for training and preparation of sportspersons for Olympics and Paralympics in different games Promotion of sports More than one state More than one district Department of Sports, Ministry of Youth Affairs and Sports, Govt. of India
40 Establishment of sixteen Central Ambient Air Quality Monitoring Systems (CAAQMS) in ten cities Environmental Sustainability and Conservation of Natural Resources More than one state More than one district Central Pollution Control Board (CPCB)
41 Towards celebration of SwachhtaPakhwada Sanitation West Bengal Kolkata National co operative consumers federation of India Ltd.
42 Conducting Medical Camps Healthcare West Bengal More than one district Medical Department, CIL(HQ)
43 Towards CILs share in the felicitation ceremony for SwachhVidyalayaAbhiyan- Administrative Expenditure Administrative Expenditure Not applicable Not applicable REC
44 Towards entry for World CSR Day Administrative Expenditure Not applicable Not applicable ABP News
45 TISS Payment – Administrative Expenditure Administrative Expenditure Not applicable Not applicable TISS
46 CSR Expenditure of North Eastern Coalfields Mutliple sectors Assam More than one district North Eastern Coalfields

Being a coal giant & with one of the largest CSR budget, CIL has the opportunity to be more innovative and implement innovative CSR programmes which are scalable and replicable in bigger number than the Premashraya project, the only project which can be scalable and replicable.

The new CMD,ShriAnil Kumar Jha, being an old Coal Veteran is expected to add value to the CSR domain bringing in his experience and dynamic leadership qualities from MCL, a successful coal subsidiary.

Interview of Anil Kumar Jha CMD, Coal India Ltd.

About the author

CSR VISION
CSR VISION is India’s ( probably world’s ) first monthly magazine in print devoted to CSR and Sustainable Development for bringing together all stakeholders of SUSTAINABLE DEVELOPMENT at a global and local levels and act as a platform for promoting strategic CSR and sustainable development practices through dissemination of information and knowledge.