Interview of Anil Kumar Jha CMD, Coal India Ltd.

Interview of Anil Kumar Jha CMD, Coal India Ltd.

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Shri. Anil Kumar Jha took over as Chairman-cum-Managing Director of Coal India Limited (CIL) on 18, May 2018. Prior to the assumption of CILs apex post, Shri. Jha headed Mahanadi Coalfields Limited (MCL) the second largest coal producing company among all CILs subsidiaries – since 1 November 2015 as CMD. MCL contributes to 25% of CILs overall production and around 24% of total coal supplies.

Shri. Jha, a Post Graduate (M. Tech) with Distinction in Mine Planning & Design from Indian School of Mines, Dhanbad began his career in 1983 in Central Coalfields Limited. He had held many important assignments and senior positions in CCL. He was also General Manager, Argada. He had a 14-year stint in Central Mine Planning & Design Institute (CMPDI) – the Ranchi based consultancy arm of CIL – planning opencast and underground mines. For a while he worked as Director (P&P) in MOIL Limited where he was the Nominated Owner and Head of Production, Planning, Projects, Quality Control and Mine Safety Divisions and other allied departments including Personnel and Industrial Relations.

Shri. Jha has over three decades of experience under his belt in mine planning, production, management supervision, direction and control of underground as well as open cast coal mines. He is the recipient of Best Chief Executive Award conferred by GeoMine Tech for outstanding performance of MCL during 2017-18. He has presented many technical papers in national and international seminars and workshops.

Q. Indian business has entered the mandatory CSR era, w.e.f April 2014. What has been the response of CIL to provisions of Section 135 of the Companies Act, 2013?

A. Coal India Limited has formulated and published its own CSR policy in line with the provisions of the Section 135 of Companies Act, 2013 and the guidelines of Department of Public Enterprises. CSR activities are being undertaken by CIL & its subsidiary companies based on the said policy.

Q. For complying with the CSR Provision of the law, is there any changes in the CSR strategy of CIL post-April 2014 (Mandatory CSR law being in force), if so, please elaborate?

A. Being a core mining company, CILs operations affect multiple stakeholders living in the periphery of the mining areas of the company. CIL already had a well functioning practise of welfare for rehabilitation and other development activities in respect of project affected people. In execution of CSR activities, the company has complied with norms as stipulated by the Companys Act, 2013 and a provision of 2% of average net profit of preceding three years are kept every year since 2014. Besides legally stipulated amount, Coal India also works out for CSR budget based on Rs. 2 per tonne of coal produced during preceding year and the budget whichever is higher is considered.

Q. Which are the key CSR projects of CIL and which one, you consider the flagship project of CIL?

A. The key areas of undertaking CSR activities are healthcare, education, rural development, infrastructure development, environment, skill development, water supply and sanitation.

Some of the key areas where CSR activities undertaken are as under:
(i) Construction of more than 52000 nos. of toilets under SwachhVidyalayaAbhiyan
(ii) Different developmental works in 40 villages of Purulia district after conducting baseline survey
(iii) Distribution of Fish Smoking Kilns to Fisherwomen belonging to SC/ST community
(iv) Distribution of Prosthetic limbs to differently abled persons
(v) Cure and better management of Thalassemia
(vi) Construction of Road over bridge (ROB) at the level crossing near Ghantapada village before NTPC conveyor on the road from Handidhuachowk to NALCO chowk in Talcher Coalfields
(vii) Mahanadi Institute of Medical Science & Research (MIMSR) at Talcher

Among the above construction of school toilets under SVA and development of 40 villages in the backward district Purulia are considered as the flagship project.

Q. Are the CSR projects limited to the Mining Project Areas of CIL are they implemented outside the project areas?

A. According to the CSR Policy of Coal India Limited, the subsidiary companies spend 80% of their CSR budget within 25 Kms radius of their mining areas. The rest 20% of the CSR budget are being spent within the state. For CIL (HQ), CSR activities are being undertaken on Pan India basis.

Q. What is the profile of the CSR organisation/division, including the profile of full time CSR professional engaged?

A. The CSR Department is a part of the Directorate of Personnel and IR. On introduction of the CSR Policy CIL and its subsidiary companies are having separate CSR departments duly headed by a GM (Officer of E-8 rank) Further, CIL has introduced a new cadre Community Development and approximately 120 nos. of MTs have been appointed in CD discipline since 2013-14. Besides executives of Civil and Personnel discipline are also posted in CSR Department.

Q. What is the level of top management involvement in CSR? Can you give a few examples?

A. The top level management is actively involved in recommending, approving, monitoring etc. of CSR activities.

There is a 2 tier CSR Committee, one Below Board Level comprising of members of E7/E8 level and one Board Level Committee comprising of two company directors and three independent directors.

  • The Dir. (P), Dir. (F), Chairman, Board Level CSR Committee and the CIL Board are involved in the process of approving the CSR projects.
  • The progress of all projects is monitored periodically by the top level management.
  • Additionally, GM (CSR) constantly apprises the top management regarding project related concerns. As per the new Companies Act, 2013, a Directors Report on CSR is being published every year.

Q. What is the level of employee engagement and involvement in CSR activities of Coal India Limited?

A. Employees are involved in the CSR activities of the company during campaigns and implementation such as the SwachhtaPakhwada. Additionally, events are organised to showcase the activities carried out under CSR.

Q. Do you think the CSR potential is fully actualised in CIL?

A. Yes, this is focussed through the maximum utilization of stipulated CSR budget during last three years as mentioned hereunder:

The budget and expenditure incurred under CSR of Coal India Limited in the past 3 years are as follows:

Financial Year CSR Statutory Provision (Rs. Crores) CSR Actual Expenditure (Rs. Crores)
2015-16 465.23 1076.06
2016-17 442.75 489.67
2017-18 390.55 276.00*
*Provisional figure (for a period up to 31.12.17)

Q. Any information you would like to share with the readers of CSR VISION?

A. CIL being a Coal producing company is involved in hazardous activities which include degradation of environment, affecting people residing in and around coal mining areas. It is in this juncture, Coal India takes initiative towards maintenance of proper being of the project affected people as well as protection of environment.

(Source: Interview by CSR VISION team)

About the author

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.