HARNESSING RESOURCES HARNESSING PROGRESS...During the reporting period, MCL supplied drinking water to 291 peripheral villages and 18 Municipal wards, during the harsh summer months

HARNESSINGRESOURCES

HARNESSINGPROGRESS

Mahanadi Coalfields LimitedCSR and Sustainability Report 2012-13

About this report

Statement from Chairman-cum-Managing Director

Company Profile

Sustaining Stakeholder Value

Corporate Governance

Awards and Recognitions

Economic Performance

Environment

Customers and Product Responsibility

People and Workplace

Our Community

Annexure

UNGC

GRI Index with NVG Mapping

Feedback form

CONTENTS01

02

04

06

08

13

14

19

27

28

38

41

42

54

Mahanadi Coalfields Limited (MCL) is happy to publish the second Sustainable

Development Report 2012-13 to all our stakeholders. The report covers in detail

our key achievements, challenges, and business performance in the areas of

economic, environment, social and governance.

The report adheres to the GRI 3.1 Guidelines and GRI's Mining and Metals Sector

Supplement (MMSS), and confirms to the GRI requirements of the Application

level B. For the convenience of the readers, we have provided the Report

Application Level Table at the end of the report.

We look forward for your valuable feedback at [email protected].

Our previous sustainability report “Responsibility to Our Resources” is available

online at the following weblink:

http://www.mcl.gov.in/About/MCL_Sustainability_Report_2011-12.pdf

Aboutthis Report

Scope and boundary of the reportThis report covers the key Economic, Environment & Social performance of Mahanadi Coalfields Ltd. and the Sustainability

reporting boundary covers MCL's (30) units at following locations:

All units and operations of our Company are in the Indian state of Odisha and cater to customers within India. The data presented has

been recorded and reported by various departments within the organisation for the period of 1 April 2012 to 31 March 2013. The

data and figures in the report are actual numbers based on the methodology and standard management systems followed by

Environment, Safety, Finance, Electrical and Mechanical (E&M), Personnel, etc. in line with industry practices.

We engaged M/s Green Evangelist to provide professional advisory services for the preparation of this report.

Pg 01 CSR and Sustainability Report 2012-13

Mahanadi Coalfields Limited

Chairman cum ManagingDirector'sMessage

Dear Stakeholder,

It is a great pleasure to present to you the second Sustainability Report of

Mahanadi Coalfields for the reporting period 2012-13. We started the journey of

sustainability reporting in 2011-12, with our report being the first sustainability

report published by any coal company in India. We believe that being on the

learning curve only helps a business to grow and mature. We have endeavored to

make use of the learnings from our first Sustainability Report in our sustainability

framework and attempted to disclose our sustainability at a higher level than last

year. The sustainability report for 2012-13 adheres to the internationally accepted

Global Reporting Initiative reporting framework (GRI G3.1) with application level

of B. We have also included the principles of the National Voluntary Guidelines on

Social, Environmental and Economic Responsibilities of Business (NVG-SEE)

along with the principles of the UN Global Compact.

In a developing country like India with a huge population, demand for energy is

inevitably high. The huge responsibility of fulfilling this demand through

enhancement in the production of coal falls on the coal companies and Mahanadi

Coalfields Limited. As one of the leading coal producers in India, we remain

committed to help in contributing to uninterrupted power supply demand in the

country, albeit ensuring that our operations cause minimal impact on the planet

and people.

We have continued to improve our performance in the areas of economic,

environment, social and corporate governance.

Harnessing Economic Value

We have continued in improving our performance overall and have maintained a strong growth momentum for this year too. The

reporting period of 2012-13, saw an increase in our revenues by about 8.25%, mainly due to the increase in the sale of coal. Raw coal

production in 2012-13 was an impressive 107.894 MT as against 103.12 MT produced in 2011-12 with a growth of 4.63%. The period

also saw us achieving 96.30% of the set target.

Overall, the economic value added for the reporting year was ̀ 1264.70 Cr as compared to ̀ 1126.28 in the last reporting period.

Harnessing the potential of Sustainable Mining

We are aware that mining especially coal mining impacts the environment and biodiversity. MCL strives to minimize this impact and

continue to undertake several steps to remain a Green Champion in the region. We are strategically replacing conventional mining

methodologies with new technologies. Manual loading have been completely stopped in all UG mines and all the districts are fully

mechanized with LHD/ SDL loading.

We are working towards mitigating climate change impacts by working on mitigating impacts in the key focus areas energy,

emissions, and biodiversity.

Our specific consumption of power (for Coal) saw a reduction of 4.36% as compared to last reporting period.

We remained focused on reducing dust suppression by adopting blast-less mining technology which eliminates the dust generating

operations like drilling, blasting and crushing completely while sprinkling water at the same time.

We continued in our efforts of ecological restoration of mine-degraded land, by the plantation of 31,800 saplings of mixed

indigenous species over backfilled internal dumps and other vacant places.

Pg 02CSR and Sustainability Report 2012-13


Harnessing the value of People

'People First', is the mantra for MCL with safety of our people occupying topmost priority. MCL has made sincere efforts to achieve

'Zero Accident' in the mines, through availability of proper safety equipment, training, R&D and strict monitoring of safety related

compliances. We have managed to reduce cases of serious injuries from the previous reporting period - from 10 to 6 cases. Whilst,

we have also minimized the fatality rate with one fatality recorded for this reporting year, we do regret the loss of one life and are

determined to take steps to avoid any loss of life within the mining operations.

We have fully equipped all the rescue stations with modern rescue apparatus like BG-174, BG-4, Maxaman, Travox 120,

Computerised testing quaster II etc. to deal with emergency situations and have deployed sufficient rescue trained workforce at our

operations.

We are proud to say that our Rescue Team bagged the 1st Prize the 43rd All India Rescue Competition, 2012 (Coal and Metal) held at

Ramagundam (SCCL).

Harnessing the value of Community

We have continued working towards building a stronger and trusting community relationship. Our structured CSR Policy

encourages an inclusive growth story through our various community initiatives such as potable water supply, building the village

infrastructure through schools and public utility roads, regular village health programmes, etc.

During the reporting period, MCL supplied drinking water to 291 peripheral villages and 18 Municipal wards, during the harsh

summer months.

Rs. 51.55 Crore was allocated for the year 2012-13 @ ̀ 5/- per tonne of coal produced in the year 2011-12 towards CSR activities as

per CIL and MCL's CSR policy. This comes to 1.39% of the profit of the Company after tax.

Harnessing Resources. Harnessing Progress.

We believe sustainable development is a continual progression and enhancement of people, processes and technology. Keeping

true to our theme of this report 'Harnessing Resources, Harnessing Progress', we have gone ahead with our vision of diversifying in

the power sector.

Mahanadi Basin Power Limited (MBPL) formed for this purpose has achieved several milestones towards the installation of

1600(2X800) MW with super-critical technology Thermal Power Plant. The Ministry of Environment and Forest (MoEF) has already

accorded Terms of Reference (ToR) clearance to go ahead with the project. MCL has ventured into the Power Transmission Business

in the State of Odisha for better utilisation of surplus fund along with infrastructure, through a Joint Venture Company namely,

Neelanchal Power Transmission Company Private Limited formed with Odisha Power Transmission Company Ltd.

We are venturing in to the renewable enrgy by harnessing the energy of Sun, through the installation a 2MW Photovoltaic Solar

Power Plant at Anand Vihar, Burla, Sambalpur.

We continue in engaging with all our stakeholders to build a stronger and more responsible Mahanadi Coalfields Limited.

I look forward to your feedback on this report, to help us improve on the quality of reporting, enhancing our disclosure parameters,

and introducing innovative initiatives.

Sd/-

(A. N. Sahay)

Chairman-cum-Managing Director

Pg 03


CSR and Sustainability Report 2012-13

Companyprofile

We are incorporated under the Companies Act, 1956, and are a subsidiary of Coal

India Limited, which has a majority shareholding by the Government of India

(GOI).

Our coal reserve is spread over two coalfields - Talcher and IB Valley - with ten

operating areas consisting of seven underground and sixteen open cast projects.

Our operating areas are:

We have three Subsidiary Companies and one Joint Venture (JV) Company namely:

i) MNH Shakti Limited

ii) MJSJ Coal Limited

iii) Mahanadi Basin Power Limited (SPV)

iv) Neelanchal Power Transmission Company Pvt. Limited. (JV)

Parent Holding Structure:

Registered Office: Jagruti Vihar, Burla, Sambalpur, Odisha – 768020

Mission

VisionTo be the leading energy supplier globally through best practices from

mine to market.

To produce & 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.

Pg 04

President of India

acting through Ministry of Coal, Govt. of IndiaPublic Share Holding

90% 10%COAL INDIA LIMITED

100% 100% 100% 100% 100% 100% 100%

Central

Mine

Planning

& Design

Institute

Limited

Eastern

Coalfields

Limited

Northern

Coalfields

Limited

South

Eastern

Coalfields

Limited

Western

Coalfields

Limited

Mahanadi

Coalfields

Limited

100%

Central

Coalfields

Limited

Bharat

Coking

Coal Limited

Coal

India

Africana

Limited

100%

60% 70% SPV (100%)

MJSJ

Coal

Limited

MNH

Shakti

Limited

Mahanadi

Basin Power Limited

Neelanchal Power

Transmission Company

Pvt. Limited. (JV)

JV (50%)



Pg 05

MANAGEMENT DURING 2012-13

CHAIRMAN-CUM-MANAGING DIRECTOR

Shri A. N. Sahay

FUNCTIONAL DIRECTORS

Shri A. K. Singh

Director (Tech/P&P)

Shri A. K. Tiwari

Director (Tech/Op)

Shri S.C. Padhy

Director(Personnel)

(upto 20.12.2012)

Shri K. Biswal

Director (Finance)

OFFICIAL PART-TIME DIRECTORS

Shri S. K. Singh

Joint Secretary, Ministry of Coal

New Delhi.

Shri B. K. Saxena,

Director (Marketing),

CIL, Kolkata (w.e.f. 9.8.2012)

NON-OFFICIAL PART TIME DIRECTORS

Shri Abdul KalamDr. Ashok KumarDr. A.K. RathShri M.B. Sridharan

Shri G. D. Brahma

COM, East Coast Railway,

Bhubaneswar. (w.e.f. 19.9.2012)

Shri R. B. Das

COM, East Coast Railway,

Bhubaneswar (upto 18.9.2012)

PERMANENT INVITEE

Shri. A. K. Singh

(w.e.f. 19.11.2012)

COMPANY SECRETARY



Employees and

Trade Unions

?Performance appraisal

?Employee trainings

?Unit & corporate level Industrial

Relations

?Vigilance week

?Safety week

?Monthly co-ordination meetings

?Employee recognition activities

?Annual & sustainability reports

Rajbhasha Pakhwara)(

?Monthly

?Quarterly

?Annually

?Career progress and

growth opportunities

?Health and safety

?Rewards and

recognitions

?Learning and

development

?Land reclamation

?Health care facility

?Security at colonies

?Environment

Key Stakeholders Mode of Engagement Frequency of Engagement Key Issues and Concerns

Customers ?RCCC meetings with customers

?Team Meets - Marketing

?Consumer complaints system

?Ongoing

?Annually

?Quarterly

?Consistent product quality

?Timely delivery

?Corporate Governance

Ministry of Coal and

Coal India?Business Performance Report

?Annual General Meeting

?Board Meetings

?Monthly

?Annually

?Company performance

Community ?Community Development

initiatives

?Public Consultation

?Through consultants like TISS

?Ongoing ?Potable drinking water

?Health, safety and

environment awareness

?Employment creation

?Development of

community infrastructure

?Education

?Resettlements; land claims;

cultural heritage

?Need for baseline survey

Regulatory Authority

(CPCB, SPCB, DPE, Labor

Commissioner,

Directorate of Mines

(Orissa Govt.), DGMS

& MoEF)

?Environment Report

?Inspection Visits

?Labour meets

?Monthly

?Ongoing

?Compliance with applicable

regulations

?Mining and related licenses

and permits

We engage with various stakeholders on a continuous basis to understand and

address the critical issues and concerns through various channels. We analyse

the needs and concerns of our diverse stakeholder group and create effective

communication channels accordingly.

The details of engagement mode, frequency and key issues with each of the

stakeholder groups are provided in the table below:

SustainingStakeholderValue

Pg 06



Materiality MatrixMateriality, in the sustainability context, refers to the issues and activities that are considered by our internal and external

stakeholders to be the most significant and relevant to our industryand our operations.

We identify risks that are material to our organisation and take into consideration Economic, Environmental, Social and Governance

impacts that are relevant to our stakeholders and not just topics of significant financial impact. The materiality matrix is based on the

nature of our business, degree of influence and impact on our stakeholders. For us, respecting our stakeholders means

understanding and addressing what is critical and material to each of them in a balanced way.

We arrived at a list of material concerns through a review of stakeholders' inputs: both direct (group discussions and one-on-one

meetings) and indirect (such as source materials including ratings and rankings surveys, customer requirements and statements

from trade unions). We also analysed the issues which are deemed material by peer industry groups in their sustainability reports

and other information available from varied sources.

The issues which are of highest material significance to our sustainable development are summarized in the following materiality

matrix:

Key Stakeholders Mode of Engagement Frequency of Engagement Key Issues and Concerns

Ancillary Suppliers,

Vendors and

Contractors

?Ancillary Development Cell

?Interactive meetings and sessions

?Vendors and Contractors meet

?Monthly

?Need based

?Timely payments

?Organisation's performance

?Assistance on supplier

development

?Health and Safety

Press & Media ?Public Relations Department

?Public Information Officer (PIO)

?Press meet

?Monthly

?Need based

? A broad range of

sustainability topics

Infl

uen

ce o

n S

takeh

old

er'

s A

ssess

men

t an

d D

eci

sio

n Low

?Ethics and Corporate

Governance

?Human rights

?Water conservation

?Timely Payments

?Dust pollution

?Biodiversity

?Rehabilitation and

resettlement

?Safety

?Transparency and

vigilance

High

?Anti-corruption

?Efficient mining

Lo

wH

igh

Materiality Prioritised Matrix

Organisation's Significant Environmental, Social and Economic Impact

?Training and development

?Community development:

Infrastructure, Education

and livelihood

Pg 07



CorporateGovernance

OUR PHILOSOPHY

OUR VALUES

We have integrated Corporate Governance as a business philosophy to ensure

transparency, greater organisational justice and corporate sustainability.

Our core values are equity, justice, transparency, accountability which are the

touchstones of good governance and we practise them to the best extent in

every sphere of our business activities.

BOARD OF DIRECTORS

Training of Board Members

COMMITTEES OF THE BOARD :

With a focus on long-term sustainability, our Board is dedicated to provide ethical and responsible leadership to the maximum

possible extent.

We remain committed to a transparent and robust governance system, which we believe when integrated with strategic business

value, leads to a high performing organisation that meets global standards.

The Board has established a number of committees to assist it in exercising its authority and to monitor the performance of our

Company. In adherence to the principle of an optimum combination of functional, nominee and independent Directors on the

Board, our Board of Directors comprises 10 (ten) Directors as on 31.03.2013 categorised as below

?4 (four) Functional Directors including Chairman-cum-Managing Director

?2 (two) Official part-time Directors (Nominee)

?4 (four) Non-official part-time Directors

Besides, Chief Operations Manager, East Coast Railway, Bhubaneswar is also appointed as a Permanent Invitee to the Board. The

Directors on Board are of the age group 50 and above.

The Board met nine times during the year 2012-13 with attendance of Directors exceeding 67% on average and the gap between two

meetings remaining less than three months.

The Functional Directors as well as the Part-time Directors, by virtue of their possessing the requisite expertise and experience in

their respective functional areas, are aware of our business model as well as the risk profile of our business. To equip them with better

familiarity of Corporate Governance practices, the Independent Directors are nominated for undergoing training programmes

organised by Top Institutions. During the reporting period, two Independent Directors were nominated for one such programme.

A suitable Training Policy for Directors in line with DPE Guidelines on Corporate Governance is also in place.

Our Board has various committees each having a clearly defined scope of work.

i. Audit Committee: The audit committee reviews financial statement, internal control systems, govt. audit and statutory auditor's

report, operational performance, projects and other capital scheme, internal audit findings/observations, development of a

commensurate and effective internal audit functions and special studies. It also pursues investigation of any matter including issues

referred to by the Board.

Pg 08



ii. Technical Sub-committee: The Technical Sub-committee evaluates, appraises and recommends on the projects for approval of

our Board. During the last reporting year, this sub-committee consisted of CMD as chairman of the sub-committee, 3 functional

directors and 2 Independent Directors and One nominee part-time director.

iii. Corporate Governance, Strategic, Risk Management and Sustainable Development (CGSRMSD) Sub-committee: This

sub-committee monitors, evaluates and reviews activities related to Corporate Governance, Strategic Management, Risk

Management and Sustainable Development. The scope of activities of the sub-committee is as follows:

Corporate Governance:

Regularly monitoring governance structures, principles and practices recommendation to the Board on any changes

Reviewing the ethical performance of the Board and recommends measures for improvement

Review of charters, composition, annual calendar for meeting and performance of all the Sub-committees of the Board

Strategic Management:

Facilitating to the Board in the formulation of strategic vision/mission/goal and objectives for the future

Recommending to the Board with the Management the strategic priorities

Recommending the Board annual action plans in all the major areas of the business

Reviewing the progress in the achievement of our strategic goals

Risk Management:

Reviewing the risk management strategy, policies & procedures

Defining risk appetite, risk tolerance

Monitoring the risk exposures

Reviewing the Management's action on managing and monitoring material risks

Reviewing the overall risk management plan and recommending changes to the Board

iv. Human Resource Management and Remuneration (HRMR) Sub-committee:

?Reviews the policies/rules/regulations/manuals/guidelines related to recruitment, transfer, promotion, training and

development, retention, deputation, succession, performance and reward system

?Recommends to the Board the strategic initiatives focused to address the HR issues, any new HR focused policy, foreign training

to the Board and Executive and Supervisory level.

?Recommends the management on annual financial budgetary allocations towards training and development, employee welfare,

public relations along with annual forecast and budget of manpower for the Company.

v. Sub-committee for Land Oustee Cases: The scope of work for this sub-committee is to consider and approve all the cases of

employment, cash compensation, etc. as per existing norms of R&R Policy being followed by us.

Whistle Blower Policy Whilst currently we do not have a Whistle Blower Mechanism in place, MCL is working on an adoptable version of Coal India Ltd's

Whistle Blower Policy. Being a Public Sector Company, our activities are open for audit by C&AG, Vigilance, CBI etc.

Risk Management To ensure an effective risk management process, we give due importance to risk identification, assessment and its control across our

different functional areas. We regularly undertake necessary control measures because of inherent risk, external and internal.

Acquisition of land, forest clearance, land oustee problems are some of the critical factors which we monitor continuously.

Due importance is given to the internal factors such as preventive maintenance of machinery, security, industrial relations, etc.,

for ensuring smooth operations. We have a separate Sub-committee of the Board at an apex level for reviewing the functioning

of the risk management mechanism.

?

?

?

?

?

?

?

?

?

?

?

?

Pg 09



Key Risks

?Delay in obtaining forestry clearance and environmental clearance

?High cost of Rehabilitation and resettlement

?Land acquisition and consequent social displacement

?Demand of employment beyond the prescribed norms resulting in frequent law and order problem and obstruction of mining

and coal transportation operation

?Proneness of open cast mining to Environmental pollution

?Inadequacy of Railways in coal transportation

?Majority of consumers are far away from Coalfields, i.e. increase in rail freight, leading to high cost to the consumers

?MoEF stipulation for use of 34% ash content coal (mostly available in MCL) by Power Houses beyond 500 Km

?The Coastal based Thermal Power Plants (TPPs) have option to use imported coal

?Captive Mining – allotment of blocks to our consumers, some Central PSUs and State PSUs, for power generation and coal mining

by State Govt. Companies for sale of coal in the market

Opportunities ?Huge Power Generation Demand leading to huge demand for coal

?Coal availability within the state of Odisha

?Linking of Power Plants located in the northern India to MCL

?Formulation of a sound marketing strategy - Long term agreement with consumers, railways and shippers

?To set up washeries

?Diversification to power generation

?JV for coal gasification and coal to liquid (oil)

The Board of Directors of the Company have adopted a Code of Conduct for Directors and Senior Management Personnel since 2008

and the same has been posted at Company's website www.mcl.gov.in.

Our Vigilance Department's prime focus is preventive vigilance which is undertaken using leveraging technology. The department

suggests systemic improvement in the identified vulnerable area of corruption so as to minimise the human interface in our business

transactions.

During the current financial year, as a preventive, predictive and pre-emptive vigilance measure, frequent surprise inspections have

been made under the guidance of CVO to identify the irregularities in various field operations as well as in due system and

procedures. Awareness on vigilance and anti-corruption issues among the employees is the priority agenda which inter-alia includes

newly inducted management trainees, vendors, students and common citizens through interactions/seminar(s).

Preventive Vigilance

(a) Inspections: To streamline the system/procedure and to bring in fairness and transparency in the field operations, we have

conducted 45 surprise and routine inspections during the year 2012-13. Surprise check of various field operations like diesel

consumption, coal quality, security deployment, coal transportation, local /emergency purchase, public procurements had been

done leading to various systemic improvements in the form of issue of circulars, instructions, guidelines and recommendations of

punitive action wherever found.

(b) Systemic Improvements: On the directives of CVC, New Delhi, issued from time to time, preventive, predictive and pre-emptive

vigilance has been the main-stay of the functioning of the Vigilance Department.

In order to enhance general awareness on vigilance and anti-corruption issues amongst our officers, a session on "Preventive

Vigilance and Public Procurement" was conducted in September, 2012, by our Chief Vigilance Officer in which 76 number of

GMs/CGMs of HQs/Areas along with the Area Project Officers participated. The circulars relating to various systemic improvement

ETHICS AND TRANSPARENCY

Pg 10



i.e. HSD issues/receipts, splitting of works, coal quality, pattern of HSD consumption were emphasised. Besides, the officers were

also advised for ensuring the use of leveraging technology in coal weighment, public procurement, connectivity of the stores,

monitoring of contractual bills, GPRS based water vehicle tracking system, etc. through the Coalnet i.e. WAN/LAN system available

within and outside the mine areas. Further, they were given time bound action plan for installation of 35 in-motion road

weighbridges so that percentage of coal weighed from pit head to stock/siding can be improved step by step.

An interactive session was also held with our linked coal consumers at Bhubaneswar in which senior officers of MCL from Sales and

Marketing/Quality Control Department participated. The interactive session was conveyed by our CVO to get first hand information

on the quality and quantity issue of coal being dispatched to various core sections. This has resulted in reduction in the

complaints/grievances relating to coal quality issues and refund of EMDs to the coal consumers.

Implementation of various systemic improvement measures i.e on-line bill payment status, installation of in-motion road

weighbridges, functioning of OITDS, etc. could be made possible through continuous monitoring by the Vigilance Department.

Further, the preparatory works relating to installation of in-motion road weighbridges for 100% coal weighment from pit head to the

stock as well as from stock to siding could get completed by regular follow-up with the Project/Area Authorities.

In one of the mega projects like "Strengthening and Widening of Coal Transportation Road at Talcher Coalfields" awarded to IVRLC-

AMR Joint Venture having an agreement value of `251.35 Crore during January, 2012, the award of consultancy work was getting

delayed by the management leading to commencement of work without hiring of the consultant. Due to the vigilance intervention,

appointment of the consultant as per the due procedure was finalised by January, 2013, leading to award of consultancy work to M/s

RITES Limited.

Punitive Vigilance:

During the year, 6 (six) major and 4 (four) minor penalty proceedings have been initiated against 17 employees. Enquiries in respect

of 8 (eight) major cases are in progress.

CVC Matters:

5 (five) cases were sent to CVC for seeking 1st stage advice. In all these cases, CVC communicated for initiation of Major/Minor

Penalty Proceedings and these cases are now under various stages of enquiry.

Right to Information Act:

19 RTI queries were replied within the prescribed time limit.

Vigilance Clearance:

During the year, vigilance clearance status in respect of 9748 employees including the officers at the level of Directors, Senior

Executives and Non-executives had been furnished to the CIL/MoC/CVC with relation to promotion, probation and superannuation

matters.

Vigilance Awareness Week:

MCL observed Vigilance Awareness Week-2012 from 29th October to 3rd November, 2012 in all the Areas and establishments for

spreading awareness amongst the employees, stakeholders and public about the vigilance activities and anti-corruption Policies.

The programme started with an anti-corruption pledge taking ceremony by the employees including Functional Directors on 29th

October, 2012.

Vigilance Bulletin:

On this occasion, 8th edition of Vigilance Bulletin was released keeping in view the need for enhancing the knowledge and

awareness of employees on various circular instructions of CVC, New Delhi. To keep our employees informed, case studies on

procurement of works, goods and services, lapses detected by CTEs organisation and articles on anti-corruption have also been

included in the bulletin, copies of which were widely circulated.

During the year 2012-13, vigilance cases were registered and disciplinary actions initiated/ proposed against our 27 officials.

Pg 11



Major Achievement:

Some of the initiatives taken as a part of preventive vigilance by MCL during the year 2012-13 are listed below:

i) Introduction of in-motion road weighbridges with RFID (Radio Frequency Identification): Installation of in-motion road

weighbridges for bringing transparency in the internal colliery transport

ii) On-line bill payment status on Coalnet: This has not only resulted in the reduction of the number of complaints relating to

delayed payment of contractual bills, but also has been instrumental in timely process and payment of contractual bills

iii) Operation of GPS based OITDS (Operator Independent Truck Dispatch System) for ensuring transparency in departmental

over burden production: The OITDS helps to ensure transparent mode of monitoring of departmental Over Burden (OB)

removal

iii) Operation of GPS based OITDS (Operator Independent Truck Dispatch System) for ensuring transparency in departmental

over burden production: The OITDS shall ensure transparent mode of monitoring of departmental Over Burden (OB)

removal

iv) Reduction of threshold value of the contract from ` 1.00 Crore to ` 80.00 lakh for successful implementation of

Integrity Pact(IP)

v) Introduction of GPRS based i-Track System in contractual water tankers deployed for supplying drinking water to nearby

villages

vi) Online monitoring of complaints and grievance redressal: Launch of a toll-free telephone number 18003456795 for lodging

hassle free complaints

vii) On-line Auto Refund of EMD on our e-procurement portal

viii) Online Materials Management System

ix) HEMM Equipment Monitoring System

x) Rotation of employees engaged on sensitive jobs

Vigilance awareness programmes

3.83% of our employees were trained with anti-corruption programme during the reporting year.

Communication with the ShareholdersAnnual General Meeting provides a forum for interaction with our shareholders. Our Operational and Financial performance is

published in leading English newspapers and also in local dailies. Additionally, we post regular updates about the Company in our

website www.mcl.gov.in

Year No. of programmes No. of employees

2010-11

2011-12

2012-13

5

18

25

63

457

822

Training on anticorruption

Pg 12

Break up of employees trained in different programmes in 2012-13

Training

imparted

through MTI

Through

interactive

sessions

Through

seminars /

workshops

Total

Executive

Non-execuive

Total

286

75

361

183

0

183

250

28

278

719

103

822

By employee

category



Awards &Recognitions

In recognition of notable contribution/achievement in various fields of our

activities, we have been conferred upon the following awards during 2012-13:

BestMiniratna

PSU Best Miniratna PSU Award 2012 by Dun & Bradstreet

Performance Excellence Award 2012 in Silver category by Indian Institutionof Industrial Engineering

PerformanceExcellence

Frame CSR Award 2012 CSRAwards

IPE CSR Corporate Governance Award 2012 CorporateGovernance

Award

HR Leadership Award-2012 by Asia Pacific HRD Congress HR

LeadershipAward

Pg 13

Greentech Environment Excellence Award for Lakhanpur & Bharatpur OCPsEnvironmentExcellenceAward



HARNESSING ECONOMIC VALUE

Production Performance:The collective efforts of our employees and the Management have resulted in

another impressive performance during the reporting year 2012-13. We acquired

a stronger growth momentum in the recent past as we made improvements in

almost all aspects of financial and non-financial performance.

In FY 2012-13, our consolidated revenue increased by about 8.25% mainly due to

the increase in the sale of coal by 4.63% growth as against 2011-12.

Open Cast

Underground

Total

106.22

1.68

107.89

100.93

2.19

103.12

Coal Production in MTe 2012-13 2011-12 % growth over

2011-12

5.24

-23.22

4.63

Our production performance for the last five years is appended below:

110

105

100

95

90

2008-09 2009-10 2010-11 2011-12 2012-13

Co

al

Pro

du

ctio

n i

n M

te

Coal producion trends for 5 years

10

4.0

8

10

0.2

8

10

3.1

2 10

7.8

9

12

10

8

6

4

2

0

-2

-4

-62008-09 2009-10 2010-11 2011-12 2012-13

9.5 8 -3.7 2.80 4.6Year on year growth in %

Year on year production growth in %

% c

harg

e in

yo

y p

rod

uct

ion

EconomicPerformance

96

.34

Pg 14



2010-11 2011-12 2012-13

Note: Taxes & Royalties includes direct tax also (i.e., Income tax, corporate dividend tax)

Target of Coal production in 2012-13 could not be achieved mainly due to Land, R&R and Envt./Forestry clearance related problems.

Coal production at few OCP was totally stopped as per the directives of Mining Dept, Govt of Odisha, Sambalpur on Environment

clearance related issues. Overall growth of coal production in 2012-13 over last year is 4.63% however UG coal production has (-) ve

growth of 23.22% due to the above mentioned reasons.

77

8.5

4

11

26

.28

12

64

.7

0

200

400

600

800

1000

1200

1400

2010-11 2011-12 2012-13

Cro

res

of

`

Year

RETIREMENT BENEFITS / OTHER EMPLOYEE BENEFITSa) Defined contributions plans:

We have defined contribution plans for payment of Provident Fund and Pension Fund benefits to our employees. These are

maintained and operated by the Coal Mines Provident Fund (CMPF) Authorities. As per the rules of these schemes, the company is

required to contribute a specified percentage of pay roll cost to the CMPF Authorities to fund the benefits.

b) Defined benefits plans:

The liability on the Balance Sheet date on account of gratuity and leave encashment is provided for on actuarial valuation basis by

applying projected unit credit method. Further we have created a Trust with respect to establishment of Funded Group Gratuity (cash

accumulation) Scheme through Life Insurance Corporation of India. Contribution is made to the said fund based on the actuarial

valuation.

Pg 15

PARTICULARS

Economic Value Added



Direct Economic Value Generated (A)

Revenue (through core business segments)

Other Income (through other sources)

TOTAL

Economic Value Distributed (B)

Operating Cost

Personnel Expenses (Wages + Benefits)

Interest Charges

Taxes & Royalties (given to various govt. wherever business units are located)

Dividends(Payments to Capital Providers)

Donations (Political Parties/Politicians)

Community Development/CSR Investments

TOTAL

ECONOMIC VALUE ADDED (A-B)

9249.76

1162.07

10411.83

3278.63

1064.67

5.52

3509.26

1570.02

0.00

205.19

9633.29

778.54

12068.60

1723.50

13792.10

4057.49

1508.19

5.38

4731.95

2226.55

0.00

136.26

12665.82

1126.28

13190.42

2070.72

15261.14

4148.53

1711.67

4.97

5576.26

2529.45

0.00

25.56

13996.44

1264.70

` in Crores

Employee Benefit Expenses

Financial Assistance received (` in Crores)

Stowing and Protective Subsidy

CCDA Grant on Capital Acccount (Rail / Road)

2011-12

0.29

4.10

2012-13

0.55

12.46

Salary, Wages, Allowances, Bonus & Benefits

Ex-Gratia

PRP

Contribution to P.F. & Other Funds

Gratuity

Leave Encashment

VRS

Workmen Compensation

Post retirement medical benefit for existing employees

Medical Expenses

Grants to School & Institutions

Sports & Recreation

Canteen & Creche

Power - Township

Hire Charges of Bus, Ambulance etc.

Other Employee Benefits

Total

Employee Benefit Expenses in Crore of ` For the Year 2012-13 For the Year 2011-2012

1204.59

62.35

46.15

161.42

22.63

43.72

1.93

0.58

35.24

30.84

18.68

0.79

0.68

54.07

2.61

25.39

1711.67

1062.21

48.53

22.05

120.70

165.09

65.88

0.99

1.42

-

20.09

16.74

0.75

0.61

50.70

1.60

25.34

1602.70

Welfare Expenses

Welfare Expenses in Crore of ` For the Year 2012-13 For the Year 2011-12

Medical Expenses for Retired Employees

CSR Expenses

Sustainable Development Expenses

Environmental Expenses

Tree Plantation

Other Expenses

Total

2.22

25.56

0.27

13.94

0.78

6.57

49.34

2.21

28.34

-

3.56

0.65

7.01

41.77

c) Other employee benefits:

Further liability on the Balance Sheet date of certain other employee benefits viz. benefits on account of LTA/ LTC; Life Cover Scheme,

Group Personal Accident Insurance Scheme, Settlement Allowance, Retired Executive Medical Benefit Scheme and compensation to

dependants of deceased in mines accidents, etc. are also valued on an actuarial basis by applying projected unit credit method.

Assistance received from Coal Controller - CCDA for Road & Rail Infrastructure and Stowing & Stabilisation works is listed below:

Significant assistance received from the Government

Pg 16



ANCILLARY INDUSTRIES

We work towards creating value for all the stakeholders and focus on providing support to the communities in and around our

operations. We have taken a huge step towards creating indirect economic value by developing, encouraging and providing

opportunities to the local budding entrepreneurs through ancillarisation. We are committed to provide a sustainable business to

them by apportioning a substantial share of revenue in the areas of Stores / Consumable / Repairing, etc.

We have a full -fledged Ancillary Development Cell committed to the following activities:

During the reporting year, MCL had actively participated in the two Mega Events :

(i) Odisha MSME International Trade Fair-2013 from 1st to 5th January 2013 at Bhubaneswar organised by MSME (Ministry of Micro,

Small and Medium Enterprises) Department, Govt. of Odisha, Department of Industries in association with National Small

Industries Corporation (NSIC), Govt. of India.

(ii) National Level Vendor Development Programme cum Industrial Exhibition and Buyer Seller meet, Enterprise Odisha from 6th to

8th November, 2012 at Cuttack organised by MSME - Development Institute, Govt. of India in association with MSME Department,

Govt of Odisha, CTTC and Orissa Industries Association. Spares of various equipment that have been identified were made open, for

easier, and simpler understanding of the MSEs (Micro and Small Enterprises). MSEs were invited for strengthening our production

process and get strengthened themselves economically.

We were awarded with Certificate of Excellence in both the events.

Besides this, we participated in seminars which helped in strengthening the entrepreneurship in the State of Odisha.

?Panel Discussion and Vendor Connect programme on 7th February, 2013 at Bhubaneswar.

?Seminar during Entrepreneur week 5th to 11th March, 2013 at Bhubaneswar.

Infrastructure Investment

2010-11 2011-12 2012-13

NumbersCost in` Lacs



Road Repairing / Strengthening

Hand pump

Dug. Wells / Pond

7

2

-

2660.90

10.24

-

10.00

7.00

1.00

322.84

24.91

2.70

13.00

136.00

24.00

995.72

95.40

69.36

Pg 17

INDIRECT ECONOMIC DEVELOPMENT

Mahanadi Coalfields Limited has been investing in the infrastructure of the surrounding community since its inception. The company

has invested in making and strengthening roads, installed hand pumps and Dug wells and ponds in and around the mines.



Areas of Ancillarisation

Consumable Stores,

Furniture, Forest

Products, Safety

Items, Machinery

Spare Parts,

Castings and

Services.

Feeder Breaker/CHP

Spares,

Underground

equipment spares,

HEMM spares, Pipe

Fittings and Civil

Items.

Electrical Items, Fire

Fighting

Equipment, Rolled

Steel Items,

Printing Jobs,

Cables, etc.

There is a growth of 17.8% in off-take from our ancillary units as well as from other SSI units inside Odisha over the last financial year.

The off-take may maintain the increasing trend due to the continual increase in demand of coal and upcoming of new projects.

Purchase/Repair statistics of ancillary units

5.5

6

6.5

7

7.5

8

2010-11 2011-12 2012-13

Cro

res

of

`

Development of MSME-Ancillary DepartmentFor implementation of the new Public Procurement Policy (PPP), Ancillary Development Cell has been strengthened and changed to

MSME-Ancillary Department headed by a General Manager (E&M) MSME/ANC. Post implementation, it is expected to increase the

off-take from MSEs on account of exclusive purchase of 358 items reserved for them and also minimum of 20% counteroffer in

procurement of other goods and services. This new policy may assure more volume of purchases from our ancillary units as well as

from other SSI units inside and outside Odisha.

7.1

3

6.4

6

7.6

1

Pg 18



HARNESSING THE POTENTIAL OF SUSTAINABLE MINING

We believe that continuous improvement in the environmental performance is

imperative to the sustainability of our business operations. We work dedicatedly

towards a common goal of minimising the environmental impact and have taken

up measures to address the environmental risks.

We have been trying to minimise the impact on the environment and natural

resources through various resource and operational efficiency measures. We are

extremely conscious of the criticality of water as a resource for the community

and continuity of the operations and are hence committed to manage water

usage in a responsible manner. We lay a lot of emphasis on reducing energy

consumption and GHG emissions and have stringent processes to monitor air

emissions and effluents. We also plan to explore in the field of renewable energy

i.e. installation of 2MW Photovoltaic Solar Power Plant at Anand Vihar.

Integrated Management System

The Integrated Management System environmental management across operations over the years has helped mitigate the

environmental risks and also influenced our growth. During the reporting period, MCL was accredited with a company-wide

9001:2008- Quality Management System, ISO 14001:2004- Environmental Management System and OHSAS 18001:2007-

Occupational Health Management System which conformed to all the applicable International Standards.

As with any other mining, Coal mining also creates a number of environmental challenges, including soil erosion, dust, noise and

water pollution and impacts on local biodiversity. As a responsible company, we strive hard to be a Green Champion and a leader in

environment mitigation. We follow the environment policy adopted by our holding company - Coal India.

All major parameters that constitute effective environmental management are under active consideration during decision making

process related to projects with stringent follow-up action.

The Department of Public Enterprises (DPE), Government of India has issued Guidelines on Sustainable Development for all Central

Public Sector Enterprises (CPSEs). In line with the guidelines, as part of the MoU with Coal India, we have undertaken the following

sustainability initiatives.

?Energy Conservation

?Recycling of sewage water/mine effluent

?Rain Water Harvesting

?Training/Workshop on Sustainable Development

?SD reporting on GRI guidelines

Environment Responsibility

Pg 19

Environment



Energy: Electrical Energy consumption

Year Coal production of MCL in ton Energy consumption in GJ

2010-11

2011-12

2012-13

60.41

62.11

65

1086846.83

1107991.11

1106392.04

Climate Change Climate change is a significant challenge to us as the mining sector and climate change have a close dependency. We recognise that

we have a responsibility to constructively engage on climate change issues and play an important role in contributing towards global

greenhouse reduction.

ORGANISATIONAL STRUCTURE FOR MINES AS WELL AS ENVIRONMENTAL MANAGEMENT

2.92

3.01

2.98

2.85

2.75

2.8

2.85

2.9

2.95

3

3.05

2009-10 2010-11 2011-12 2012-13

kW

h/t

on

ne o

f co

al

Electricity consumption per tonne of coal in kWh/tonne of coal

Director (Technical), MCL

GM (Environment)

Engineers

(Mining, Civil & Environment)

CGM / GM

Chief Conservator of Forests

Staff Officer (Civil)

Staff Officer (E&M)

Staff Officer (Survey)

Staff Officer

(Planning, Land & R&R)

Staff Officer (Mining)

Staff Officer (Security)

Staff Officer (Excavation)

Staff Officer (Personnel)

Staff Officer (S&M)

Staff Officer (System)

Staff Officer (Safety)

Staff Officer (Environment)

Staff Officer (Finance)

Project Officer

Project Engineer (Excavation)

Project Engineer (Civil)

Project Engineer (E & M)

Project Engineer

(Planning & Monitoring)

Project Environmental Officer

Staff Officer (MM)

Are

a L

eve

lSu

bsi

dia

ry L

eve

l;

MC

L (H

Qs)

Labour Welfare Officer

/Personnel Officer

Manager (Stores)

Survey Officer

Land/Estate Officer (R&R)

Training I/C

Safety OfficerPro

ject

Leve

l

Security Officer

Colliery Manager Staff Officer (Finance) Medical Superintendent (Medical & Sanitation)

Project Engineer

Pg 20



Energy Conservation Measures Taken

(1) Electrical Energy

?Specific consumption of power (for Coal) during 2012-13 is 2.85 kWh/T in comparison to 2.98 kWh/T for 2011-12 i.e. % reduction

of 4.36%

?Specific consumption of power (for Composite Production) (i.e. Coal+O.B Removal) during 2012-13 has decreased from 2.08

kWh/Cu.M during 2011-12 to 1.97 kWh/Cu.M during 2012-13 i.e. % reduction of 5.28%. (Target for 2011-12 was 2.50 kWh/Cu.M

while for 2012-13, target was 2.45 kWh/Cu.M)

?Power Factor Incentive availed during 2012-13 is for ̀ 141.23 lakh in comparison to ̀ 177.48 lakh during 2011-12.

(2) Fuel and Lubricants

?Periodical overhauling of engines and regular checking of filters, hoses and tyre pressure

?Maintenance of haul roads

?Regular checking of self-starters and introduction of maintenance free batteries

?Guidelines were issued by IED and approved by Director (Technical/O), MCL for minimising the HSD consumption

Steps taken wherever feasible / possible for reduction in power consumption for effective conservation of energy:

I) To contain peak demand of power at a reduced level and to avail TOD (Time-of-the Day) incentive as maximum as feasible,

regular loads, such as, pumping etc. are being operated during off-peak hours

ii) To reduce energy consumption by industrial pumps, steps such as maintenance effectiveness, optimisation of delivery and

suction sizes, use of floats, use of V.T. pumps through bore-holes, deliveries and cables through bore-holes, etc. have been

taken

iii) Use of LED lamps or CFLs instead of conventional lamps: Orderd for 500 numbers of 10 watt LED; 453 numbers of 90 watt

LED and 60 numbers of 45 watt LED lamps for replacing conventional lamps of 20 watt; 150 watt and 70 watt respectively. This

is part of the sustainable development project under "Energy Management" head being implemented in Jagannath Area,

Orient Area and MCL HQ in compliance of MoU with DPE

iv) Use of electronic chokes in tubelights and electronic regulators for fans instead of conventional chokes and regulators

v) Regular cleaning of filters of air conditioners and ensuring that air-conditioned space is properly closed

vi) Avoiding lose connections and using proper size of fuses

vii) Optimum usage of transformer capacity thereby reducing transformer losses

viii) Ensuring minimum cable losses with proper size of cables, i.e. of rated capacity

ix) Maximum voltage near the load - In underground mine 3.3 kV/550V TSUs (Transwitch Units) have been placed so that

sufficient voltage is made available to the loads/machineries for achieving better efficiency and rated output as well as

prescribed life of the machineries.

x) Power factor close to 98% has been maintained by using power capacitors thereby reducing energy loss

xi) Minimum transmission loss has been ensured by using proper sizes of overhead conductors

xii) Stage pumping/Intermediate pumping has been reduced to minimise energy loss

xiii) Ensuring exact size of electric motors in pumps

xiv) Use of higher sizes/recommended sizes of delivery lines and suction in pumps and avoiding throttling

xv) Ensuring no leakages in pipelines thereby improving pumping efficiency

xvi) Ensuring proper condition of bearings, etc

xvii) To contain maximum demand close to the contract demand, close monitoring during peak hours are exercised by

controlling non-productive load, i.e. resorting to load-shedding, if necessary. Capacitors of appropriate specification are

being used to enhance power factor for dual benefit of reduced maximum demand as well as availing incentives on higher

power factor from the Electricity Distribution Companies

Pg 21



Carbon Footprint – Reducing Emissions through Technology

We have been focussing on reducing emissions by making the most of the latest technologies.

During the reporting year, 68.44% of our coal production (73.84 Mt coal) was through Surface

Miner Technology. This is an eco-friendly blast-less mining technology that eliminates the dust

generating operations like drilling, blasting and crushing completely while sprinkling water at the

same time.

In addition, we ensure selective mining of coal and stone layers separately with the machine to reduce the ash content by about 3%

resulting in less ash generation in power plant and reduction of green house gas as well. During the reporting period, 26 such Surface

miners, including 07 Departmental Surface Miners for coal production have been introduced in almost all the Opencast Mines, which

is eco-friendly and has eliminated drilling, blasting and crushing activities in the mines.

Reduction in Diesel Consumption due to Drilling

Surface Miner Carbon Credit in MT

Co2 reduction due to use of Surface Miner (Diesel saving from drilling)

Reduction in CO2 due to Blasting

CO2 reduction due to use of Surface Miner (No blasting required)

Reduction in CO2 due to Crushing

CO2 reduction due to use of Surface Miner (No crushing required)

CO2 reduction due to use of Surface Miner (CHP feeding avoided)

Total saving due to Crushing

Reduction in CO2 due to less transportation

CO2 reduction due to use of Surface Miner (Ash reduced 3%)

Total CO2 Reduction

4946.6

7973.6

1841.8

2473.3

4315.1

602175.2

619410.5

Water

We understand that water is a precious resource that must be used responsibly. Water

management is essential to ensure conservation of freshwater usage as well as mitigating

through water pollution measures. The environmental, ecological, social, cultural and economic

values of water have also led to greater scrutiny of responsible water use and expectations from

our stakeholders for improved resource stewardship. We have great governance, regulation and

performance requirements in response to these expectations.

Water Conservation Initiatives

?Disused quarry voids are used as water harvesting structure for recharge of ground water

?Water Treatment Plants (WTP) are operational under integrated water supply schemes of Talcher, IB Valley, Belpahar and

Basundhara. Small scale water filtration units for domestic supply are existing at Talcher and Orient Areas using underground mine

water.

Total water withdrawal from surface sources

Unit Location 3Surface Water Source in m 2010-11 2011-12 2012-13

IWSS

IBVA

LKPA

B-GA

MCL, HQ

Brahmani River

IB river

Hirakud reservoir (Mahanadi)

Basundhara River & Basundhara East Quarry

Power Channel (Mahanadi)

16451700

2273269

4485135.69

228125

436800

16451700

2271907

4720708

228125

436800

16451700

2304595

5285924

228750

436800

Total Surface Water Withdrawn 23875029.69 24109240 24707769

Pg 22

Surface water sources are not affected due to the withdrawal of water from our operations.



Underground mine water pumped in Million Litres

Water recycled after being pumped from underground sources is used for domestic & industrial consumption and supplied to

surrounding villages, remaining water flows into the mine voids where it is stored as reservoirs, used for aquifer recharging, etc.

In order to conserve rain water and replenish the ground water reservoir, eight rain water harvesting Proposals were envisaged and

agreed under MoU as a SD activity. Out of these eight agreed proposals, five (Area Office and Officers' club of Talcher Area, Jagannath

Colony of Jagannath Area, Utkalika of Balaram Township and N JOY Club of Hingula Area) have been completed.

Water Pollution Control Measures and Waste Management

?Mine drainage water pumped out of the mine as well as the water flowing out from OB dumps is put into settling ponds before

being discharged in order to settle the sediments and prevent silting of rivers and other water bodies

?Oil and Grease Traps (OGT) are also in place at the workshops of opencast mines in order to remove oil and grease as well as oily

sludge from the waste water

?Seven Sewage Treatment Plants (STP) have been provided for treatment of domestic effluent. The sludge generated is used as

manures for plantation and gardening in the townships. The treated water flowing out of these STPs is re-used for irrigation

purposes

?Garland drains and catch drains are also provided around quarry boundary and OB dumps in order to arrest sediments and

prevent shifting of natural drainage

?Disused quarry voids are used as water harvesting structure for recharge of ground water

?Water Treatment Plants (WTPs) are operational under integrated water supply schemes of Talcher, IB Valley, Belpahar and

Basundhara. Small-scale water filtration units for domestic supply are existing at ground mine water

?Recycling of mine water proposals for various areas have been conceived and taken up as an MoU activity under SD with a view

to reduce surface water withdrawal and restrict discharge of mine effluent outside mine premises during the reporting period

Air Quality

When it comes to coal mining, dust is the only major source of air pollution as there are no

chemicals involved in the operations.

The total particulate matter includes dust size from 0 micron to 100 micron is assessed using

emission rate for different mining activities like drilling in coal & OB, blasting of coal & OB,

loading of coal & OB, transportation of coal & OB, unloading of coal & OB, crushing of coal at

CHP and loading of coal at railway siding for despatch to power plants & other consumers.

The emission rate has been developed by CMRI, Dhanbad under funding of MoEF, GOI. The

emission rate for different mining activities are different. The total estimation of TPM at our operations for the year 2012-13 is

7732.000 tonnes at Talcher Coalfields and 8042.847tonnes at IB Valley Coalfields.

The total particulate matter has been calculated at coalface for the activities like drilling, blasting, loading etc., and loading &

unloading at CHP and at railway siding that is subsequently lifted from the ground for despatch to the consumers and hence not

necessary that the total estimated TPM becomes air borne which is harmful for the health of human being and animals.

30 - 100 micron particulate matter: This constitutes approximately 80% of the TPM which settles down due to gravity within a very

short distance from the source of pollution and it can go maximum up to 100 metres from the source of pollution.

Pg 23

Underground Water Source 2010-112011-122012-13

U

se o

f M

ine w

ate

r

Total quantity of water pumped

Domestic

Industrial

For surrounding

5173.67

14406.99

16070.67

64198.66

35651.33

5477.00

15520.00

15824.00

63038.00

26217

5278.00

14413.00

15182.00

65612.00

30739Total quantity of water used



10 - 30 micron particulate matter: This forms 15% of the TPM which settles within 200 metres of the source of pollution.

0-10 micron particulate matter: Less than 5% of the total particulate generation, this is the really harmful content and it can travel

500 metres and beyond.

For control of particulate matter pollution, thorough water sprinkling arrangement like fixed sprinklers, mobile water sprinklers

through large capacity water tankers like 28 kilolitres, misters, etc. are being made at our dust generating sources.

Measures taken to control the air pollution:

?We have adopted blast-less mining technology which eliminates the dust generating operations like drilling, blasting and

crushing completely while sprinkling water at the same time

?Selective mining of coal and stone layers separately with the machine to reduce the ash content by about 3% resulting in

less ash generation in power plant and reduction of green house gas as well

?Mist type water spraying system is being installed along the conveyor belts/bunkers in the major coal handling plants

?Maintenance of fixed and mobile water sprinklers on roads, railway sidings, CHPs, stock yards, etc.

?Installation and strengthening of existing dust collectors and dust extractors in drills and CHPs

?Manual sweeping and collection of spillage and dust over coal transportation roads and heavy-duty truck-mounted

vacuum-operated mechanical road sweeper is in operation Black topping of permanent and semi-permanent roads were

maintained and further strengthened during the year

?Green belts continued to be developed between residential areas and the mines

?To control air pollution in handling and dispatch of coal, two SILO loading system namely, Lakhanpur (UTLS) and Bharatpur

(RRLS) are in operation and additional four numbers at Ananta, Lingaraj, Bharatpur and Bhubaneshwari Project are in

progress

Routine environmental monitoring of air, water and noise was carried out during the year through CMPDIL laboratories, duly

recognised by the Central Pollution Control Board (CPCB). Automatic Weather Stations at Jagannath Area and Lakhanpur Area are in

operation.

Noise ControlWe are the trendsetter in introducing blast-free technology of winning coal in opencast mine by Surface Miner. Some of the Noise and

Ground Vibration Control Measures followed are:

?Green belts developed between residential areas and the mines as well as infrastructures were maintained and some new one

added during the year

?Ear Muffs and Ear Plugs given to workers exposed to noise were replaced and issued to new workers as well

?Non-electric detonators were used wherever necessary for less noise and ground vibration during blasting. Controlled blasting

was also practised.

Biodiversity: Land Reclamation and Plantation

Coal mining is a site specific Industry, i.e. mining has to be done where coal deposits are

available. As our operations expand, we would enter regions of greater environmental and

social sensitivity due to biodiversity values or other land-use values that may compete with

resource extraction. We seek to effectively engage with stakeholders to best understand and

manage these issues.

But we aim to deliver lasting benefits to the environment and communities by improving

natural resource management and enhancing biodiversity.

Pg 24



Tree Plantation on the reclaimed barren land in back filled and OB dump areas, plantation in and around mines, road side,

township/residential areas, available vacant spaces and implementation of conservation plan for protection of flora and fauna are

carried out as per EC/FC. During the reporting period, 90.36 M.Cu.M of overburden was removed as against 85.66 M.Cu.M in 2011-12.

Environment Impact Assessment studies have been made for all our mines. Taxonomical enumeration of flora and fauna in the core

and buffer zone is made through a recognised institute. These studies indicate that there is no significant impact on biodiversity due

to mining activities of the company. Remote sensing satellite data are generated on annual basis to help in assessing the progressive

status of mined land reclamation and to take up remedial measures, if any, required for environmental protection and sustainable

development.

There are no Biosphere reserve, National Park, Wildlife sanctuary in core and buffer areas of working mines. Some reserve forests are

present in core and buffer zones. These forests are diverted for mining purposes as per the provisions in the Forest Conservation Act

1980. The mining has affected the flora in the forest land of mining lease area during the mine life and the impact is considered as

reversible as the mined out area as per the EMP is being afforested.

During the reporting period, we carried out several plantation plans for biological reclamation of the mine-degraded land towards

the goal of ecological restoration.

We planted 31,800 saplings of mixed indigenous species over back filled internal dumps and other vacant places. The plantation and

subsequent maintenance works were executed through M/s Odisha Forest Development Corporation (OFDC) and M/s Chhattisgarh

Rajya Van Vikas Nigam Limited, Korba. Plantations were also done in residential townships and office premises especially with fruit-

bearing, flowering and medicinal plants and trees.

Year Plantation in nos. Expenditure in `

2010-11

2011-12

2012-13

99936

75575

31800

6418919.61

7066825.44

1954826.40

Regular monitoring of mine closure and land use pattern by remote sensing application is in progress for 14 opencast mines for both

IB Valley and Talcher Coalfields through CMPDIL. The report generated is being uploaded on our website.

We do not have a specific Biodiversity Policy, but the Environment Policy specifically stresses on conservation of biodiversity. We put

in sincere efforts to restrict actual mining to an optimal area which gradually advances and as the decoaled/mined areas become

available the backfilling and reclamation activities commence. We acquire land for expansion of mining activities by providing

rehabilitation and resettlement to the affected villagers. During the year 2012- 13, we acquired 1092.442 hectares of land.

Number of trees planted

Mine Closure Provisions

Mine closure plans prepared by CMPDIL have been approved by our Board on different dates in 2011 and 2012 for 16 open cast

mines and 9 (nine) underground mines. Escrow Accounts for all the 25 projects have been opened at UBI, Sambalpur on 27th

September2013 with a joint agreement between MCL, Coal Controller and the Bank. Total amount of ̀ 23868.33 lakh up to 2012-13

as per CMPDIL mine closure plan phasing, in respect of all these 25 projects have been deposited in the Escrow Accounts on 8th

October 2013.

Pg 25



Environmental Expenditure

Environmental Expenditure in Lakhs of `

Tree Plantation

Other Environmental Expenses

Water Tax / Cess

Environmental Training & Seminar

Environmental Monitoring Cost for Air Water & Noise

Environmental Operation & Maintenance - Catch/ Garland Drain/ Fencing

Environmental Operation & Maintenance - ETP/ STP

Environmental Operation & Maintenance - Mobile and Fixed water Sprinkler

Environmental Operation & Maintenance - Other Dust Mitigating Equipment

Repair & Maintenance for Dust Suppression Measures

Miscellaneous - ground water monitoring etc.

Dust Suppression Measures

TOTAL REVENUE EXPENDITURE (A)

Civil Works - Effluent Treatment Plant

Civil Works - Rain Water Catchment

Surface Miner

Water Sprinklers

Pg 26

2010-11

107.29

212.20

69.65

0.00

73.82

5.69

5.76

5.58

10.11

15.92

13.74

8.59

528.35

14.34

-2.27

88.81

986.17

Dust Suppression Equipment

Environmental Monitoring Equipment

Other Environmental Expenses

TOTAL CAPITAL EXPENDITURE (B)

GRAND TOTAL (A+B)

1.26

0.00

15.23

1103.54

1631.89

2011-12

65.49

222.92

44.75

0.05

65.93

9.03

5.09

22.62

22.89

6.92

0.00

7.89

473.58

0.00

0.00

1040.07

1312.31

85.21

0.00

0.50

2438.09

2911.67

2012-13

78.29

906.89

77.55

0.23

232.61

177.71

8.81

49.01

11.61

20.48

0.00

7.56

1570.75

0.00

0.00

0.00

0.00

2.70

49.64

1.50

53.84

1624.59



We solely serve the Indian market. We work closely with our customers so as to

understand the efficiency of the product being used at the customer's end. This

knowledge helps in serving our customers in a better way while catering to their

changing needs.

Coal Quality Improvement:

We have taken utmost care to improve the quality of coal being supplied to different Power Houses and to fulfil consumer

satisfaction. During the reporting period, various measures for ensuring proper quality of coal dispatched were intensified and we

achieved a record dispatch of 111.964 Mt. As against 102.52 Mt. in the previous reporting period. We are working on improving

product quality and customer satisfaction.

Some of the measures undertaken are as follows:

1. Frequent interactions with different consumers

2. Quarterly Regional Coal Consumer Council Meetings

3. Area level meets are held with various consumers at the time of Joint Sampling and complaints are sorted out at the

colliery level / loading level

4. Consumers are encouraged to check and supervise personally the coal loading sidings as well as weighbridges

The consumer feedback form is also available on our website so that the consumers can download and submit it . Our Sales and

Marketing deals with consumers on the basis of the directives of Ministry of Coal/CIL. All the consumers have signed Fuel Supply

Agreement (FSA) and the consumers as well as we are bound with the FSA only. In case of E-auction buyers, it also deals with terms

and conditions given by the MOC/CIL and as per the guidelines received, we deal with the consumers/buyers. The customer

satisfaction is measured through the points mentioned in the FSA. Consumer buys coal from us and as per the available report

almost the joint sample result is at par with the declared grade of coal. The coal lifted by the consumer by their own mode through

road mode and lifting satisfaction is taken up on balance lifted quantity. In FSA there is incentive and compensation clause if

consumer gets more than the trigger level they pay incentive to the company. These are the management practices for measuring

the satisfaction level of our customers. During the reporting period, 17 quality related complaints were received.

We adhere to all standard laws as per the directives of MOC/CIL. In regard to marketing communication, we issue a letter to the

consumer as soon as we receive the LOA from MOC/CIL. The milestone is achieved by all the respective consumers who have got

fixed guidelines and all coal companies have to carry out these guidelines. Regarding promotion of coal, we have started surface

mining methods to supply (-) 100 mm size coal to all the major consumers like Power Houses, Cement, Sponge Iron, etc., which gives

us better satisfaction level and good return in regard to payment as well as the consumer also gets benefited by using this coal. We

promote such type of coal after several meetings with the consumers. In regard to sponsorship, we are doing such activities for

upgrading our name through CSR and other activities.

SECTOR WISE COAL DISPATCH DURING 2012-13Colly. Consumption, 0.005%

Others, 23.45%

Power (incl. CPP), 88.16%

Cement, 0.35%

Customersand ProductResponsibility

Pg 27



HARNESSING THE VALUE OF PEOPLE

Workforce

Our people are the foundation of our success. We consider the safety and health

of our people and that of the broader communities in which we operate central to

our success. The professional growth of our employees along with their work-

life-balance is critical for sustained growth of our business. Our Human Resource

Management department is well aligned with its long-term strategies, which

culminates in attracting, nurturing, developing and retaining talent. We strive to

create a working environment that is free from occupational illness or injury.

During the reporting period, our workforce comprised of 22,065 employees and

as compared to 22,023 in the last reporting cycle. Out of the total manpower, the

strength of the executives is 1851 and non-executives is 20214. All the employees

are Indian Nationals with 1.7% of the employees belonging to minority groups

such as Muslim, Christian, Sikh, Jain and others. We look at recruiting the best

talent available and also offer compensation on par with the best standards in the

industry.

Categorisation2010-112011-122012-13

Male Female Total Male Female Total Male Female Total

Executives

Non-Executive (Technical)

Non-Executive (Non-Technical)

Total No. Of employees

(Head count)

1784

2848

15878

20510

67

234

1254

1555

1851

3082

17132

22065

1594

2602

16336

20532

49

230

1212

1491

1487

2506

16080

20073

1643

2832

17548

22023

39

199

1114

1352

1526

2705

17194

21425

The percentage of employees

by gender

We believe that, each individual brings unique skills, experience and perspectives; and we recognise that we are strengthened by

diversity. We are committed to providing a work environment in which everyone is treated fairly and with respect and has the

opportunity to maximise their potential.

NSC

H, T

alc

her

Hin

gu

la A

rea

Jag

an

nath

Are

a

Bh

ara

tpu

r A

rea

Lin

gara

j A

rea

Kan

iha A

rea

Talc

her

Are

a

CW

S, T

alc

her

Basu

nd

hara

Lakh

an

pu

r A

rea

IB V

alle

y A

rea

Ori

en

t A

rea

CW

S, I

B V

alle

y

Area wise distribution of workers

4000

3500

3000

2500

2000

1500

1000

500

0

Nu

mb

er

of

wo

rkers

dep

loyed

Contractual workers Data

Breakup by employee category

MaleFemale

7%

93%

People andWorkplace

Pg 28



The percentage of employees by age group

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%

Under 30 Years 30-50 Years Above 50 Years

Categorization by age group

0.63%

8.37%

3.78%

50.22%

2.59%

34.41%Male

Female

Recruiting and Hiring

Employee Turnover

During the period, 1013 persons joined by way of fresh recruitment, transfer, reinstatement, etc. and 971 persons were separated by

way of retirement, transfer, ESS, resignation, death, etc. The main increase in manpower is on account of providing employment to

the Project Affected Families as per the R&R Policies in vogue, recruitment through campus selection and open recruitment of

Management Trainees by CIL.

Categorisation2010-112011-122012-13

Male

Associates (E1 - E3)

Middle Management (E4 - E6)

Senior Management (E7 - E9)

Top Management

By Region

IB Valley Coalfields Area

Talcher Coalfields Area

Sambalpur Headquarters

0.074

0.000

0.000

0.000

0.000

0.000

0.000

Female Total Male Female Total Male Female Total

By Employee category

0.007

0.026

0.074

0.000

0.002

0.001

0.026

0.016

0.031

0.066

0.000

0.002

0.001

0.020

0.000

0.053

0.143

0.000

0.000

0.001

0.000

0.016

0.038

0.139

0.000

0.002

0.002

0.036

0.015

0.032

0.068

0.000

0.002

0.001

0.018

0.000

0.000

0.167

0.000

0.002

0.000

0.000

0.016

0.036

0.139

0.000

0.002

0.002

0.034

Rate of Employee Turnover by Category, Region and Gender

Learning and Development

Training and Development is an integral part of the our Corporate Policy to deal with the development of existing Human Resources

as well as to look ahead with clear perspective with special reference to technological advances and growth of manpower to fulfil the

demand of production vis-à-vis technology.

Our Training and Development department takes care of the various training needs of its employees for their skill up-gradation and

new skill acquisitions through internal training as well as external training. Besides this, we send our employees for outside training

Pg 29

0.005

0.027

0.075

0.000

0.002

0.001

0.028



To cope up with the task emerging from strategic plan, annual HRD plan is worked out

every year to integrate HRD efforts in all the three in-house training centres i.e.

Management Training Institute (MTI), Burla, Belpahar Training Institute (BTI), Belpahar,

Lakhanpur Area, Mining, Engineering and Excavation Training Institute (MEETI), Talcher

and 5 Vocational Training Centres (VTC) located in different areas in following three

segments. These Vocational Training Centres provide mandatory training to the

employees working in mines as per DGMS guidelines.

I) Technical Training: Necessary technical training is provided to the employees working

in mines directly or indirectly. It also updates them with latest technology if any, to be used

in mining operation in near future so that capital and technology input to the project

through capacity and new equipment or enrichment in the production process through particular systems in technology could

provide appropriate return to the investment. In order to implement the above, employees are exposed through :

ii) Management Training: Need based training is provided to executives at each level as per our requirement form time to time e.g.

entry to the higher level. In house training on various subject of our interest is imparted at the Management Training Institute, Burla.

Also the executives are sent to various outside organisations like IICM, Ranchi, IIMs, IITs, NITs and other renowned training centres in

India and abroad for acquiring new skills and knowledge.

Description

2010-2011 2011-2012 2012-2013

No.trained Training hrs No. trained Training hrs No. trained Training hrs *

Executive

Male

Female

Total

Non-executive

Male

Female

Total

Non-executive

Skilled

Unskilled

Total

MCL Total

Male

Female

Total

Basic Course

Refresher Course

Specialised Course

Appropriate to technology, equipment and system

Once in three years to those who have already gone through basic course or are already

working in specific skill area. Refresher training is also conducted either on the site or in the

training centres.

In case of change in technology, in equipment configuration and capacity and improvement in

the system of production.

programmes on a regular basis to upgrade their skills in benefit of the company to various institutes of good repute across India. We

encourage and offer opportunities to our employees interested in higher studies by providing them with the facilities of Study Leave

based on certain organisational policies.

Pg 30

46.10

1.04

47.14

13.37

0.26

13.63

3.30

10.33

13.63

59.47

1.30

60.77

1778

40

1818

5631

111

5742

1391

4351

5742

7409

151

7560

46.07

1.93

48.00

47.44

0.56

48.00

30.25

17.75

48.00

93.51

2.49

96.00

908

38

946

4067

48

4115

2593

1522

4115

4975

86

5061

46.10

1.90

48.00

47.34

0.66

48.00

27.06

20.94

48.00

93.44

2.56

96.00

752

31

783

4404

61

4465

2517

1948

4465

5156

92

5248



?General Management Programme : For enhancing the managerial skill and performance of

executives

?Functional Programme : For developing functional skills

?Cross Functional Programme : For developing knowledge regarding function of other

department

?Computer Awareness Programme : For efficient and smooth functioning of official jobs

?Supervisory Development Programme: For knowledge and skill up-gradation

?Safety Management for Supervisors: For creating awareness among the supervisors

?Coaching classes : For carrier growth

?Computer Awareness Programme: For efficient and smooth functioning of official jobs

?Workers Development Programme : For skill up-gradation of workers

?HEMM training : Land oustees are selected for this training to be posted in different mines

after proper training

?Safety Awareness Programme : To create safety awareness among workers regarding safety in

mines

?Computer Awareness Programme : To handle computer efficiently

Executives

Documents

HARNESSING RESOURCES HARNESSING PROGRESS...During the reporting period, MCL supplied drinking water to 291 peripheral villages and 18 Municipal wards, during the harsh summer months