MINISTRY OF MINES · Conservation and their planned exploitation is therefore, of prime importance to the national economy. ... (NALCO, Bhubaneswar. (ii) Hindustan Copper Limited(HCL),

GOVERNMENT OF INDIA

MINISTRY OF MINES

CONTENTS Page No.

Executive Summary

(i) to (xv)

Chapter – I Mandate, Goals and Policy Frame Work

1 to 20

Chapter - II Outlays, Outputs and Outcomes

21 to 26

Chapter - III Reform Measures and Policy Initiatives 27 to 32 Chapter - IV

Review of Past Performance

33 to 58

Chapter – V Chapter- VI

Financial Review Review of Performance of Statutory and Autonomous Bodies

59 to 70 71 to 78

Annexure -I Outcome Budget 2007-08 79 to 103

Annexure -II Details of Actual Achievements vis-a-vis Intended Outcomes indicated in Outcome Budget 2005-06

104 to 125

Annexure –III Appendix-I

Details of Actual Achievements vis-a-vis Intended Outcomes indicated in Outcome Budget 2006-07 Projected Outcome of GSI 2007-08

126 to 157 158

Appendix-II On Going Schemes 159-163

Chapter-I Mandate,Goals and Policy Frame Work

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CHAPTER - I

MANDATE, GOALS AND POLICY FRAMEWORK Ministry of Mines The Ministry of Mines is primarily responsible for the development and regulation of the mineral sector including the mining and metallurgy of all non-ferrous metals both in private and public sectors, but excluding Natural Gas, Petroleum, Coal and Atomic minerals.

Mineral resources are wasting assets. Conservation and their planned exploitation is therefore, of prime importance to the national economy. Besides providing the basic inputs to domestic industry, the mineral sector accounts for sizeable export and foreign exchange earnings.

Having regard to the extent and variety of mineral resources in the country, there is great potential for rapid growth in this sector. This calls for concerted action and coordination of a large number of tasks, including basic mapping (topographical and geological), exploration, evaluation, extraction processing and beneficiation of ore. Organisational Set-up At the Secretariat level the Ministry of Mines is mainly engaged in direction, supervision and co-ordination and has the following six divisions:- I. Survey and Exploration Division – deals with geological survey, mapping and exploration of both the land-mass and the sea-bed. The following are the principal agencies which implement the programmes of this division:-

(a) Geological Survey of India; (b) Mineral Exploration Corporation Limited.


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II Mines Division – deals with the administration of Mines and Minerals (Development and Regulation) Act, 1957 as amended from time to time and the rules and regulations framed thereunder. It has one Subordinate Office to implement the programmes of the division, viz. Indian Bureau of Mines.

III Metal Division- deals with the planning, exploitation, development, monitoring of programmes and research in respect of non-ferrous metals both in the public and private sectors. The following undertakings are engaged in the production of non-ferrous metals in the public sector:-

(a) National Aluminium Company Limited (Aluminium) (b) Hindustan Copper Limited (Copper)

IV S&T Division- The activities under the Science and Technology Programme of the Minerals and Non Ferrous Metal Sector cover the field of Geology,Exploration, Mining and Environment, bioleaching, beneficiation Rock Mechenics, ground control and Non Ferrous Mettelargy. Under the S&T programme the following centres of excellence (autonomous bodies) are working under the Ministry of Mines:-

(a) National Institute of Rock Mechenics (b) National Institute of Miners’ Health (c) Jawaharlal Nehru Aluminium Research Development and Design Centre.

V General Administration Division – is mainly concerned with the establishment and administrative matter of the Ministry. VI. Finance and Accounts Division- is concern with the budget, financial Scrutiny of project and other proposals, rendering financial advice and maintenance and compilation of accounts.


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The Ministry of Mines has two subordinate offices and four Public Sector Undertakings under its administrative control. There are three research institutions are also funded by the Ministry of Mines. These are listed below:

Subordinate Offices (i) Geological Survey of India(GSI),Headquarters at Kolkata (ii) Indian Bureau of Mines(IBM), Headquarters at Nagpur.

Public Sector Undertakings(PSUs) (i) National Aluminium Company Limited(NALCO, Bhubaneswar. (ii) Hindustan Copper Limited(HCL), Kolkata (iii) Mineral Exploration Corporation Limited(MECL), Nagpur. (iv) Bharat Gold Mines Limited(BGML),Kolar Gold Fields, Karnataka.*

*BGML has been closed under Section 25(O) of the Industrial Disputes Act, 1947 from 1.3.2001. Research Institutions

(i) Jawaharlal Nehru Aluminium Research Development and Design Centre,(JNARDDC), Nagpur (ii) National Institute of Rock Mechanics,(NIRM),KGF, Karnataka. (iii) National Institute of Miners’ Health (NIMH), Nagpur.


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ORGANISATION CHART OF MINISTRY OF MINES AS ON 1.2.2007

Name & Designation

Shri J.P. Singh, Secretary Shri Vinod Kumar,Dir(K) Shri C.K.Rawat, US(R)Dr. Pradeep Kumar, Special Secretary Shri Nawal Kishore,Dir(N) Shri H.M.Meena, US(M)Shri Sujit Gulati, JS&FA S hri Deepak Srivastava,Dir(T) Shri Anil Subramunium,Smt. Ajita Bajpai Pande, JS(A) Shri A.K. Mehta,Dir (M) Smt. Neeta Gupta, US(N)Shri V.K.Thakral, JS(V) Shri A.K.Singh, Dir (A) Shri Pramod Chand,U S(P)Smt. Vibha Pande,CCA Shri G. Srinivas, Dir (S) Shri S N Singh , DO-I Shri Prem Prakash, DS(P) Dr. J.M.Sharma, DO-II Shri R. K. Malhotra, DS(M) Shri H.L. Sharma, Dir(NIC) Smt. Suresh Raina, JD( OL)

US (A)

DO-IITPPC

DS(P)CDN.APIO

DIR(M)CDN.,TPPC

CPIO

DO-IMET-IV

NIRM,NIMH

DIR(T)M-I (GSI

EXPL.)

US (A)M-IV

DIR(K)

US (R)M-II

DS (F)

SS(MINES)

PAO MINESCASH

CCA(S&M)

US(M)IF/IWSU

DS(F)

JS&FA

US(A) M-V, M-VI

DIR(S)IC

JD(OL) US(P)HINDI PG

DIR(N)Vig.

US(P)Met. III

DIR(K)

JS(A)

US(P) ADMN./ ESTT.,

DS (M)M-III

US (P)M-I (MECL)

US(N)Met-II(HZL)

Met-I

DIR(A) DIR(NIC)

JS(V)

Secretary

Ministry of Mines

Name & Designation

Shri J. P. Singh, Secretary Shri Pradeep Kumar, Special Secretary Shri Sujit Gulati, JS & FA Smt. Ajita Bajpai Pande, JS(A) Shri V.K. Thakral, JS(V) Smt. Vibha Pande, CCA

Shri A. K. Singh, Dir(A) Shri Vinod Kumar, Dir(K) Shri A.K. Mehta, Dir(M) Shri Nawal Kishore, Dir(N) Shri G. Srinivas, Dir(S) Shri Bhupal Nanda, DS(F) Shri Deepak Srivastava, Dir(T) Shri R.K. Malhotra, DS(M) Shri Prem Prakash, DS(P) Shri H.L. Sharma, Dir(NIC) Smt. Suresh Raina, JD(OL)

Shri Anil Subramanium, US(A) Shri H.M.Meena, US(M) Smt. Neeta Gupta, US(N) Shri Pramod Chand, US(P) Shri C.K. Rawat, US(R) Shri S. N. Singh, DO-I Dr. J.M. Sharma, DO-II


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1. Geological Survey of India(GSI) The Geological Survey of India is responsible for collection, collation and dissemination of geological data and providing basic geological information essential for the successful implementation of practically all the developmental programmes in the country. The investigations carried out by this organization contribute directly to the discovery and evaluation of mineral resources ensuring thereby the continued and steady supply of vital raw materials to the core industrial sector. The results of the investigation aid in better understanding of the crustal framework and the geological process, with a lot of valuable impact on other vital sectors such as agriculture, land use management, irrigation and power development, utilization of water resources, development of transport and communication, education and scientific management of environment. . Organisation Structure: The GSI with the Director General as its head functions under the Ministry of Mines (MOM). The Director General has the overall responsibility of planning, programming, financial and material management of the organisation. The responsibility of overall monitoring of scientific activities, dissemination of information and advice to Govt., public and private entrepreneurs also rests with the Director General. There are six Regions (geographically based), three specialised Wings (activity based) and Training Institute, besides the Central Headquarters. The Senior Deputy Directors General/Deputy Directors General (HAG/SAG level) are at the helm of affairs in these Regions/Wings and function as "Head of Department"(HOD) and oversee the formulation and implementation of annual programme, exercise budgetary control, allocate the resources, determine the relative priorities, and effect executive and other controls on Divisions/Projects within the Regions. Besides having functional Units in the respective headquarters, each of the Regions comprises State based Operational Units, which are mostly headed by SAG level officers. The specialised Wings also comprise sector wise functional Units in addition to the headquarters set-up. The Training Institute, located at Hyderabad, has satellite-training centres in different parts of the country. A SAG level officer (Deputy Directors General) co-ordinate the activities related to the programme formulation, administration and technical control and provide infrastructure support for implementation, operate the allocated budget, and coordinate the inter-disciplinary activities.


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The primary functions of collecting the basic geological information is carried out by GSI through its Divisions/Projects spread all over the country which is functional entities with well defined work schedule, time frame, manpower and material inputs. Clusters of such Divisions and Projects, normally headed by JAG level officers are located at the Regional and Operational offices and in many outlying stations, totalling 33 cities/towns in the country. The officers heading these Divisions and Projects initiate actions for programme formulation, coordinate the approved project work, evaluate and analyses the data, interact with other disciplines and supporting streams and finalise the scientific and technical reports. These Divisions/Projects are provided normally with number of time-scale officers of one or more streams depending on the requirements, who constitute the field parties actually engaged in data collection at the ground level and in laboratories, synthesis and preparation of reports and publications. The support activities to the geological investigations are provided by independent set ups, in the complementary disciplines like geophysics, chemistry, drilling, mechanical engineering, materials management, finance and administration. Each of these establishments is based at Regional or Operational offices and is headed by an officer of the level of Dy. Director General/Directors/ Time Scale officers. The present structure ensures availability of technical guidance and supervision from different disciplines as necessary. However, more lateral interaction is envisaged for smooth functioning/implementation of GSI's programmes by the way of ‘projectisation’. This will also ensure smooth transformation from a hierarchy type of structure to a matrix type organisation. Periodical review mechanisms at different management levels ensure effective monitoring and programme implementation in order to achieve desired objectives of various geological investigations. A generalised organisation structure of GSI is illustrated in the Fig - 1


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Fig - 1 : ORGANISATION STRUCTURE OF GSI

MINISTRY OF MINES

DIRECTOR GENERAL

WINGS REGIONS CENTRAL HEADQUARTERS

WESTERN, EASTERN, NORTHEASTERN, CENTRAL,

NORTHE RN, SOUTHERN

COAL, AIRBORNE MINERAL SURVEYS & EXPLORATION, MARINE, TRAINING INSTT.

OPERATIONS OPERATIONS

TECHNICAL CO-

ORDINATION STATE

BASED UNITS TECHNICAL

CO - ORDINATION

OPERATION BASED UNITS

PROGRAMME EXECUTION

DIVISIONS PROJECTS D IVISIONS PROJECTS

Planning, Programming & Monitoring HRD & International Relation Central Geological Labs

Map & Publication Geophysics

Geochemical

Drilling

Personnel Finance

Modernisation IT

Geophysics(I)

Mech. Engineering


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Schemes of Work : The activities of GSI has been classified in the following Schemes:

Scheme Components /Activities 1. Survey & Mapping Specialised Thematic Mapping, Geochemical Mapping, Geophysical Mapping,

Systematic Geological Mapping, Airborne and Marine Surveys. 2. Mineral Exploration Coal (including lignite), gold, basemetal, diamond and other minerals. 3. Specialised Investigation Geotechnical, environmental, landslide, earthquake geology and seismology, glacial,

geothermal and desert geological studies. 4.Research & Development and

Other Exploration Petrology, palaeontology, geochronology, chemical, geophysical and photo-geology and remote sensing studies & Antarctic studies

5. Information/Dissemination Map, Publication, Information Technology 6.Human Resource

Development Training

7.Modernisation and Replacement

Acquisition and replacement of instruments/ equipment

Mandate:

• Preparing and updating geological, geophysical and geochemical maps of the country and its offshore area.

• Exploring and assessing mineral and energy resources of the country and its offshore areas. • Systematically exploring the shallow subsurface domain of the country and developing and maintaining national drill core libraries and documentation

centres.

• Conducting research in earth sciences and promoting application of the new knowledge for effecting management of the earth system and its resources.


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• Fostering and promoting the understanding of geological knowledge to reduce risk to life and property from geological hazards and addressing societal issues to enhance quality of life.

• Creating and maintaining earth science data bases and acting as the national repository of earth science data generated by various organizations and

disseminating these in public domain for developmental, educational and societal needs.

• Holding, protecting and maintaining collections of rare and representative geological materials as national geological monuments, museums and parks.

• Representing India in international bodies, participating in international collaborative scientific projects and developing data sharing net works with other countries.

• Providing consultancy services and undertaking commercial projects in the country and abroad.

• Undertaking such other activities, including training, as may become necessary in the light of developments in the field of earth and planetary sciences and

related subjects. Goals and Objectives

• GSI is predominantly involved in four broad work domains viz- Basic Earth Science Data Generation, Natural Resources Surveys, Environment and Earth-System studies and Dissemination of Information.

2. Mineral Exploration Corporation Limited(MECL) The Mineral Exploration Corporation Ltd., registered under Companies Act 1956, was formed on 21st October 1972. The Company’s registered office is at Nagpur, Maharashtra State, India and manages its functions at projects, the main production centres, through a 2 tier system from the Corporate Office at Nagpur. To facilitate the prompt maintenance of plants and machineries deployed at various projects, three Regional Maintenance Centres at Ranchi, Nagpur and Hyderabad are being operated. Technical guidance to the projects, finalisation of geological reports, close liaisoning with the clients and looking for new business opportunities is being carried out through the Zonal Offices located at Ranchi, Nagpur and Hyderabad. The commercial activities of the Company is being looked after by Business Development and Planning Division, in addition two Business Development Centers are in operation at Delhi and Kolkata.


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The Company was conceived to be the sole agency for exploration on behalf of Government of India and the task of detailed exploration of minerals throughout the country was assigned to MECL. The Company went into operation in right earnest in early 1973 and at the outset, it pressed into service, the nucleus of personnel and equipments drawn from GSI. Simultaneously, it sculptured its own structure by suitable additions of new plants, machineries and skilled technical manpower to boost its production and to meet the requirements of various clients by providing quality services. MECL is the premier exploration agency in the country. As a service organization, it carries out exploration activities under two major heads, viz. Ø Promotional work for coal, lignite and metallic minerals on behalf of and funded by Govt. of India. The scheme for detailed exploration are

formulated by the Company, in the perspective of the demand vs. availability as well as national priorities. Ø Contractual work on behalf of other agencies including Public Sector, Private Sector and State Governments as per contract executed by

MECL with them. Mission:

• “To provide high quality, cost effective and time bound geo-scientific services for exploration and exploitation of minerals”. Objectives :

• The basic aim of MECL is to bridge the gap between preliminary exploration of mineral prospect and its commercial exploitation. To achieve this aim and accomplish its Mission, the Company has the following objectives.

i) To plan, promote, organise and implement programmes for detailed mineral exploration and to perform functions assigned by the

Government from time to time within and outside the country. ii) To carry out geological, geo-technical, geophysical survey, remote sensing & environmental studies and IT enabled services for

exploration of minerals. iii) To carry out exploratory drilling and developmental mining operations, to prove and estimate the reserves of various minerals/ores. iv) To take up projects for exploration, developmental mining and related activities in association with MNC’s through MOU/bilateral

agreement routes.


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v) To undertake jobs on commercial basis in various fields of mineral exploration as well as for purposes other than mineral exploration, such as geo-technical, mine constructions and commercial mining of minor minerals.

vi) To offer consultancy services for obtaining prospecting license, mining lease, exploitation by mining and beneficiation for different types of minerals, rocks and ores.

vii) To obtain prospecting license and mining lease for different types of minerals, in India and elsewhere for the purpose of mining and

processing. Vision:

• The vision is “MECL to be the leader in natural resources by 2020” . 3. Indian Bureau of Mines(IBM) The Indian Bureau of Mines (IBM), established in 1948, is a subordinate Organization under Ministry of Mines, engaged in promotion of scientific development of mineral resources, conservation of minerals and protection of environment in mines, other than coal, petroleum & natural gas, atomic minerals and minor minerals. Towards this end it performs regulatory functions, namely enforcement of Mineral Conservation and Development Rules, 1988, relevant provisions of Mineral Concession Rules, 1960 framed under MM(DR) Act, 1957, and as a facilitator, it undertakes scientific and techno-economic research oriented studies in various areas such as geological appraisal, mining, ore-beneficiation, environmental protection, mineral resources of the country and functions as a data bank of mines and minerals. It also advises the Central and State Governments on all aspects of mineral industry, trade and legislation. The activities of IBM are in accordance with its charter of functions notified by the Government vide resolution No. 35/1/2002-M.III dated 6th March 2003. These are in the nature of regulatory and service activities for scientific and systematic development of mineral resources, conservation of minerals and protection of environment in mines, other than coal, petroleum, natural gas and atomic minerals and minor minerals. Charter of Functions/Mandates/goals and objectives:

• To promote systematic and scientific development of mineral resources of the country (both onshore and offshore)


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• To approve mining plans, schemes and mine closure plans having regard to conservation of minerals and protection of mines environment.

• To collect, collate and maintain database on exploration, prospecting, mines and minerals and to bring out publications / bulletins highlighting the problems and prospects of mining industry.

• To play a pro-active role in minimising adverse impact of mining on environment by undertaking environmental assessment studies on regional basis.

• To conduct suo moto techno-economic field studies in mining, geology, mineral processing and environmental aspects including analysis of ore and minerals and to promote R & D activities in these areas.

• To provide technical consultancy services on promotional basis within the country and abroad in the field of mining, geology, mineral processing and environment.

• To provide training to the scientific, technical and other cadres of the department and persons from the mining industry and other agencies for human resource development.

• To advise the Government on matters in regard to the mineral industry, relating to environment protection and pollution control, export and import policies, trade, mineral legislation, fiscal incentives and related matters.

• To promote awareness about conservation, systematic and scientific development of mineral deposits and protection of environment including restoration and rehabilitation of mined out areas through exhibitions and audiovisual media.

• To promote and monitor community development activities in the mining areas. • To undertake any such other activity as may become necessary in the light of the developments in the field of geology, mining, mineral

beneficiation and environment.

Organizational Set-up

IBM is organized into four functional divisions, namely :

(i) Mines Control and Conservation of Minerals Division. (ii) Ore Dressing and Technical Consultancy Division. (iii) Mineral Economics, Statistics, Research and Publication Division. (iv) Planning and Co-ordination Division having two sub-divisions :

a) Administration, Establishment matters (including training), Accounts with all other administrative and financial matters and;

b) Planning and Co-ordination.


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IBM has its headquarters at Nagpur and 12 Regional Offices at Ajmer, Bangalore, Bhubaneswar, Chennai, Dehradun, Hyderabad, Jabalpur, Kolkata, Margao, Nagpur, Ranchi and Udaipur and 2 sub-regional offices at Guwahati and Nellore. IBM has well equipped Ore Dressing Laboratories and Pilot Plants at Nagpur, Ajmer and Bangalore.

Major Programmes / schemes :

During 10th plan various general and S&T schemes of IBM were merged with analogous programmes and grouped into following four schemes which are being continued in the 11th Plan :

1. Inspection of mines for scientific and systematic mining, mineral conservation and mines environment 2. Mineral beneficiation studies – utilization of low grade and sub grade ores and analysis of environmental samples 3. Technological upgradation & Modernization 4. Collection, processing, dissemination of data on mines and minerals through various publications

Policy Framework and Vision: "To promote and facilitate rapid and sustainable development of national mineral sector, continuing with efforts for systematic and scientific development of mineral deposits, conservation of minerals, protection of mining environment by regulating mining activities, to update mineral inventory, utilisation of waste and low grade resources by technology development, implementation of apt mining method, monitoring of community development in and around mining areas and to develop and implement mineral information system for collection, collation, retrieval and dissemination of data on mines and minerals."

The above objectives call for the following action areas :

Inspection of Mines : • To ensure systematic and scientific development of mineral deposit, conservation of minerals and protection of environment by

implementation of Mineral Conservation and Development Rules,1988

Mineral Inventory : • Adoption of United Nations Frame Work Classification (1999) of assessment of resources and preparation of national minerals

inventory.

Mineral Beneficiation : • Technology developments to use the available low-grade ores and minerals.


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• Suitable use of wastes and recovery of associated minerals and metals. • Conducting in-plant studies in order to improve the productivity of mineral beneficiation plants.

Legislation and Guidelines :

• Simplification of procedures for mineral concession and required clearances, framing of legislation for development of marine mineral resources, promoting foreign investments and technical collaborations with joint ventures.

Information System : • Acceleration of the process of dissemination of Geological information, mineral maps with forest and environment data, status of mineral

deposits, mining and industry data on production, uses, marketing information, latest technology developments etc. for user agencies and to implement computerized online information system on mine tenement.

Sustainable Development : • Devising environmental standards applicable to mining areas and norms for reclamation and rehabilitation of mined out areas and

management of wastes/rejects.

Industrial Promotion : • Technology up-gradation and R & D activities in mining and ore beneficiation.

4. Hindustan Copper Limited (HCL) Hindustan Copper Limited a Government of India Enterprise and the nation’s only producer of primary copper from indigenous resources was incorporated in the Public Sector on 9th November 1967. The major activities of HCL are exploration, mining, beneficiation, smelting, refining and casting of finished copper metal into saleable products. HCL produces primary copper in the form of cathode/wire rod. Apart from copper, HCL also produces various by-products like Anode Slime and Sulphuric acid. The present smelting and refining capacity of HCL is supported by mining/beneficiation activity and import of concentrate to cover the short fall. 5.National Aluminium Company Limited (NALCO) The National Aluminium Company Limited (NALCO), an integrated multi-locational Aluminium Complex, was incorporated on 7th January, 1981 to implement the Bauxite, Alumina and Aluminium Project in the backward tribal areas in Orissa, in the Public Sector.


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Finance: The authorized capital of the Company is Rs.1300 crores. Vide letter dated 09.3.99 Govt. of India approved the capital restructuring proposal of the Company. Accordingly, 50% of paid up equity capital of Rs.1288.62 crores was converted to redeemable secured debentures which has since been totally repaid on 25.03.2005. The paid up equity capital after restructuring continues to be Rs.644.31 crores out of which Govt. of India’s holding is Rs.561.50 crores(87.15%).

As a part of capital restructuring scheme, Govt. of India was allotted Debentures worth Rs.561.50 crores which was placed in the market by the Govt. and fetched a net cash inflow of Rs.561.50 crores to Govt. of India in March,1999. In addition, a sum of Rs.64.43 crores was paid by Nalco to Govt. of India towards income tax on deemed dividend as per the Income Tax Act,1961. The original Project cost was partly financed by external commercial borrowings from a consortium of International Bankers, French Credit facilities and partly by equity subscribed by Govt. of India. The entire Foreign Currency loan had been repaid/prepaid by 30.9.98 and Nalco thus became a ‘Zero Debt Company’ from Sept’98 to March’99 when 50% of Equity Capital amounting to Rs.644.43 crores was converted into debt through a scheme of capital restructuring with the prior approval of Govt. of India which has since been repaid in full. Further, to meet 1st Phase Expansion expenditure of S&P Complex, the Company borrowed Rs.300 crores in the year 2001-02 and for pre-payment of foreign currency loan of US$ 33.831 million taken from EFIBANCA, Italy, BY ERSTWHILE IAPL which was taken over by NALCO on amalgamation of IAPL with NALCO, the company borrowed Rs.140 crores in the year 2001-02. The loan was liquidated in the year 2004-05 and since then, the NALCO is a Zero-debt company. Vision:

• To be a Company of global repute in Aluminium Sector.

Mission:

• To achieve growth in business with a global competitive edgerproviding satisfaction to the customers, employees, share holders and

community at large. Objectives:

• To maximise capacity utilisation, optimise operational efficiency and productivity.


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• To maintain the highest international standards of excellence in product quality, cost efficiency, customer service and provide steady growth in business by technology up-gradation, expansion and diversification.

• To have global presence and earn foreign exchange through export turnover of 50% of total sales and to have around 1/3rd domestic

market share.

• To continue to remain the lowest cost producer of Alumina in the world and to strive to become low cost aluminium producing Global Company in five years time. (The benchmark for attaining this status will be provided next year).

• To become the 6th largest Company in the world in Alumina production.

• To complete 2nd phase Expansion within 50 months from the Zero Date.

• To promote a result-oriented organisational ethos and work culture that empowers employees and helps realisation of individual and

organisational goals and maximise internal customer satisfaction. • To foster high standards of health, safety and environment-friendly products and to develop a strong R&D base and increase business

development activities and explore the feasibility of emission trading.

• To strive for production of value added down stream products.

• To participate in peripheral development of the area. Existing Operation:-

(i) 4.8 million tpa Bauxite mine at Panchpatmali in Koraput District(Orissa) including 2.4 Million tpa bauxite Mine capacity added by way of 1st phase expansion .

(ii) 15.75 lakh tpa Alumina Plant at Damanjodi, Koraput District (Orissa) which includes 7.75 lakh tpa of Alumina capacity added by

way of de-bottlenecking/ expansion.


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(iii) 3,45,000 tpa Smelter Plant at Angul, Angul District (Orissa) which includes capacity addition of 1,15,000 tpa by way of expansion.

(iv) Captive Power Plant at Angul, Angul District (8 units of 120 MW each) to supply power to Smelter Plant including two units of

120MW each added by way of 1st phase expansion to cater the increasing energy needs of the company in view of the present expansion.

(v) Port Handling facilities at Visakhapatnam (Andhra Pradesh) to handle export of Alumina & Import of Caustic Soda.

(vi) Special Grade Alumina Plant was commissioned in the month of March’04 with installed capacity of 26,000 tpa of Special

Grade Hydrate and Alumina

(vii) Zeolite was commissioned in the year 2004-05 with installed capacity of 10,000 tpa.

(viii) Rolled Product Unit: The Company had taken over International Aluminium Products Limited (IAPL) with an Installed capacity of 50,000 TPY of Aluminium Alloy Coil Sheets. IAPL has since been merged with NALCO after obtaining requisite approvals from Govt. of India as a separate unit, Rolled Product Unit(RPU).

Projects in hand:

(i) 2nd Phase Expansion :- To increase the capacity of the plant, the company has gone for 2nd phase expansion at an approved outlay of Rs.4091 crores after receipt of Government of India approval on 26.10.2004 with a project completion period of 50 months.

(ii) Captive Coal Mines (Utkal Coal E-Block) :- As a part of Company’s endeavour for backward integration to meet its

critical raw materials need, the Company has gone for acquiring a coal mines and got allotment from Government of India on 27.08.2004.

Research & Development (R&D) : (i) In-house R&D Activities :


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(a) Alumina Plant

- Recovery of TiO2 from Plant Sand. - Recovery of Alumina from Partially Lateralized Khondalite (PLK). (b) Smelter Plant - Characterization of Baked Anode for process monitoring. - Determination of cell factor for prediction of net carbon consumption. - Performance monitoring of pots lined with partially damaged cathode blocks. - Development of indigenous tri-metallic anode clads.

(ii) Collaborative R&D Activities

- Studies on Mechanochemical Activation of Bauxite to improve the performance of Bayer Process for Alumina Production and

minimize Environmental impact of Red Mud in Collaboration with NML, Jamshedpur. - Production of Value Added Materials from Partially Lateritised Khondalite (PLK) of NALCO Mines in Collaboration with RRL,

Bhubaneswar. - Development of Integrated Technology for Processing East Coast Bauxite for production of Alumina in Collaboration with

JNARDDC, Nagpur (SSAG Project, Ministry of Mines, Government of India). - Study on Impurity Build-up during Bauxite Process and its effect on Bayer liquor Chemistry in Collaboration with JNARDDC,

Nagpur (SSAG Project, Ministry of Mines, Government of India). - Ultrasonic Treatment of Spent Pot Lining in Collaboration with JNARDDC, Nagpur (SSAG Project, Ministry of Mines,

Government of India). - Evaluation of Grain Refining Efficiency of commercially available grain refiner alloys in Collaboration with JNARDDC, Nagpur

(SSAG Project, Ministry of Mines, Government of India). - Infrared Thermography Studies at Alumina Plant, NALCO, Damanjodi in collaboration with JANARDDC, Nagpur. - Development of process for extraction of Vanadium Sludge from NALCO’s Green Liquor in collaboration with JNARDDC,

Nagpur. - Preparation & certification of reference materials for selected ores & other materials in collaboration with JNARDDC, Nagpur. - Development of Effective Technology for Extraction of Alumina from NALCO’s Partially Lateritised Khondalites (PLK) with

MISA, Moscow, Russia/ RSIL, New Delhi.


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- Development of a Viable Process Flow sheet to Recover Titanium and Iron from the Plant Sand of NALCO’s Alumina Refinery, Damanjodi, in collaboration with RRL, Bhubaneswar.

- Setting up of a 7 TPA Gallium Plant (99.99% purity) at NALCO, Damanjodi, in collaboration with NLM/ JFEST, Japan. (iii) Future R&D Projects :

- Setting up and NALCO’s R&D, Engineering & Technology Development Centre at Chandaka, Bhubaneswar for which Company’s Board have accorded approval at its 211th meeting held at New Delhi, on 15.12.06.

- Development of NALCO’s own technology through Process & product development, Waste utilization, Energy conservation,

Indigenization of equipment, Import substitution and Diversification for production of different value added items etc. to be the focus of company’s Research & Development activities.

- National & International Collaborations with reputed Research Laboratories, Industrial Houses and Academic Institutions for

Technology Development and Commercialization. 6. Science & Technology(S&T) Introduction The Science & Technology programme of the Ministry of Mines was initiated in 1978 with the view to encourage research and development of indigenous technology in the minerals and non-ferrous metal sectors.

Structure Project proposals from various Government institutions, public sector undertakings, universities and other research organizations engaged in the mineral and mining sectors are peer reviewed by a Group of Experts constituting the Project Evaluation & Review Committee (PERC). Suitable projects are forwarded to a high level Standing Scientific Advisory Group (SSAG) of the Ministry of Mines under the Chairmanship of the Secretary (Mines) for approval. Projects Project formulation is a continuous process involving interaction with the industry for identification of the problems and availability of suitable implementing organizations. Selection of the projects is done on the basis of,


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(a) National requirement angle (b) For enhancing competitive edge of the Indian mineral and non-ferrous metals sectors (c) To solve site specific and organization specific problems.

The projects in the category of (a) are taken up with the grant in aid from the Ministry of mines (MOM) and other Government departments. The projects in category (b) are financed by the grant in aid from MOM, other departments, contribution from industry and from implementing organization. The projects in category (c) are financed by the implementing organizations themselves.

Mandate

The underlying principle behind this programme had been the utilization of the available mineral resources in a judicious, economically efficient and environmentally sustainable manner. An important component of this programme had been the selection of research and development projects relevant to the National priorities.

Goals and Objectives

Emphasis is being given to the projects related to the exploration of ore deposits of concealed nature or of strategic importance, development of technology for the upgradation of the lean ores, beneficiation techniques for winning metals from mine wastes, plant tailings and ores as by products. Research related to the development of more environment friendly techniques in the mining sector will be given preference.

Chapter-II Outlays, Outputs and Outcomes

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CHAPTER - II

OUTLAYS, OUTPUTS AND OUTCOMES

This chapter relates to Non-Plan and Plan Budget of the Ministry of Mines for 2007-08. Non-Plan Budget The Non-Plan Budget of this Ministry is Rs.235.70 crore . Out of which Rs.9.66 crore for Secretariat Proper, Rs.204.14 crore for GSI, Rs.17.11 crore for IBM, Rs.1.46 crore as grant to BGML, Rs.2.70 crore for payment of salary to three autonomous bodies, Rs.0.28 crore for contribution to International bodies, Rs.0.35 crore for holding National Mineral Awards have been provided. Plan Budget The Planning Commission has approved the Plan Budget of this Ministry at Rs.1380.29 crore consisting of Rs.160.00 crore through Gross Budgetary Support(GBS) and Rs. 1220.29 crore through internal and extra budgetary resources(IEBR). Rs.1158.00 crore for NALCO through their internal resources(IR), Rs.123.00 crore for GSI through GBS, Rs.17.00 for IBM, Rs.50.00 crore for HCL through IR, Rs.19.00 crore for MECL(Rs.11.00 crore for promotional work through GBS and Rs.8.00 crore through their IR). Rs.7.29 crore for S&T(Rs.3.00crore from GBS and Rs.4.29 crore through their IEBR and Rs.6.00 crore(GBS) for construction of residential and official building of GSI and IBM, have been provided. The detailed financial outlays, projected physical output and projected/budgeted outcomes(intermediate/partial & final for year 2007-08 as the case may be) organization for the Ministry of Mines are given in Annexure-I. 1.Geological Survey of India(GSI) The Financial Plan Outlay for the FY 2007-08 is Rs. 128.00 crore (including Construction budget of Rs.5.00 crore).


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In case of GSI, the Projected Physical Outputs or Quantifiable Deliverables Targets are considered as the likely physical targets to be achieved through its various geo-scientific activities during course of the specified period. Objectives of each scheme / programmes, with financial outlays and projected physical output / outcomes are furnished in the Outcome Budget for the year 2007-08 at Annexure – I. 2. Mineral Exploration Corporation Ltd.(MECL) Financial Outlay 2007-08 : Outlay for Promotional Exploration Programme : The promotional mineral exploration programme are being carried out by MECL on behalf of and funded by Ministry of Mines. The exploration schemes are prepared in conformity with the national priorities assigned by the different working groups on mineral exploration. The results of regional exploration carried out by Geological Survey of India in different part of the country forms the basis for formulation of the schemes for detailed exploration. The schemes are examined by the Technical Sub-Committee of Standing Committee of Promotional Projects (SCPP) and are finally approved by the SCPP. To facilitate full utilisation of annual allocated fund, to take care unforeseen law & order situation affecting implementation / non commencement of scheme(s) and the time taken in obtaining the forest clearance before commencement of exploration, it has been decided to have shelf of exploration proposals in hand. The SCPP meets periodically for review and monitor the performance of the on going projects and approve additional scheme(s). A provision of Rs. 11.00 crore has been kept in (BE) 2007-08 to carry out promotional mineral exploration programme. Outlay for capital expenditure : For replacement / procurement of new plants & machineries on routine basis annual outlay for capital expenditure is also approved by the Ministry of Mines. For the year 2007-08 a provision of Rs. 8 crores (IEBR) has been made in BE-2007-08 for capital expenditure. The details of financial outlay under both the heads along with anticipated out puts and the final outcomes for 2007-08 are given in Annexure-I.


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3.Indian Bureau of Mines(IBM) During 10th plan, the various general and S&T schemes of IBM were merged with analogous programmes and grouped into four schemes and these schemes are being continued in the 11th plan. The objectives and functions of these schemes are very much relevant to the charter of functions of IBM.

Objectives of each schemes/programme, with financial outlays and projected physical outputs/outcomes are furnished at Annexure – I. 4.Hindustan Copper Limited(HCL) Replacement & Renewals : This is a continuous process for achieving maximum utilisation of the existing capacity/facilities. Due to lack of sufficient fund, the company in the past could not replace the critical plant and mining equipment in time. As a result, the desired production from the existing facility could not be achieved. The proper and timely replacement/renewals of critical equipment in Smelter, Refinery, Milling House and various material handling equipments in mines is pre-condition for achieving better capacity utilisation. Therefore, the company proposes a plan outlay of Rs. 50.00 crore in 2007-08 which has to be entirely funded out of own internal resource generation as per Annexure I. The company has put up a higher target of MIC production of 31,000 MT in the draft MOU 2007-08 as against 29,500 MT MIC target of 2006-07.

5. National Aluminium Company Limited (NALCO)

The Details comprising of financial outlays, projected physical outputs and projected budget outcomes are furnished as per the prescribed format at Annexure-I . The brief note of various schemes and programme are given hereunder:

Addition, Modification and Replacements (AMR) :

The original project which was commissioned in phases during 1985-86 to 1987-88 has become quite old. To overcome obsolenace of the old plant and machinery constant up gradation of core and non-core technologies have become imperative. To maintain the capacity at the rated level and achieve the target in the budget period a provision of Rs.125.00 crores has been kept in BE 07-08.


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Target for major products for BE 2006-07 are as under Bauxite : 48,00,000 MT Alumina : 15,75,000 MT Aluminium : 3,48,241 MT Power : 5863.8 MU IInd Phase Expansion:

The second phase expansion proposal with a projected capital outlay of Rs. 4091.51 crores was approved by the Government of India on 26th October, 2004. The project is scheduled to be completed by 26th December, 2008 i.e. in 50 months from Zero date. The capacities of various project segments after completion of project will be as under;

Mine : 6.30 MMTPY Bauxite Alumina Plant : 2.10 MMTPY Alumina Smelter : 4,60,000 TPY Aluminium CPP : 10 x 120 MW power Port Facility : Alumina for export: 1.216 MMTPA

Caustic soda import: 0.293 MMTPA

Keeping the delivery schedule, orders already placed and orders likely to be placed, capital outlay of Rs. 1000.00 Crores has been kept for 2007-08. As the project is scheduled to complete during the year 2008-09, production will commence after that period. Hence for the year 07-08, quantifiable physical output could not be set.

Captive Coal Mines (Utkal-E-Block)

As a part of Company’s endeavour for backward integration to meet its critical raw materials need, the Company has planned to have its own coal mines. The approval by the Government of India for allotment of a Coal block has been received on 27.08.2004. Considering that the mining operation will be done by NALCO departmentally, the capital cost for this project has been estimated at about Rs. 308.00 Crores. A sum Rs.30.00 crores is kept in BE 2007-08 towards detailed exploration, land acquisition, Forest and Environment clearance etc.


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Greenfield overseas Smelter Project: As a part of Company’s endeavour for diversification and value addition to enhance wealth of shareholders of the company and to maximize the profitability, the company has engaged EIL to explore A Greenfield smelter project in the Middle East Region so as to take advantage of cheap gas to reduce the energy cost of smelter plant and effective utilization of surplus alumina of 1.2 million available after 2nd phase expansion.

An ad hoc sum of Rs.1.00 crores is kept in 2007-08 for preparation of detailed feasibility report and other associated work.

Debottle-necking of Alumina Plant:

In early 2004 Aluminium Pechiney (AP) have proposed for incorporation of various improvements/changes in the 2nd Phase expansion of Alumina Refinery, so that the capacity of the 4th stream can go upto 7.00 lakhs TPY instead of 5.25 lakhs TPY based on existing technology. Implementation of Improvement Proposal will also lead to installation of a 5th stream in the Alumina Refinery, giving an ultimate plant capacity of 29.75 lakhs TPY.

However as by that time, the proposal for 2nd Phase expansion was under active consideration of Government of India and environmental clearance for 2nd Phase expansion of Alumina Refinery was in place, NALCO decided to implement the Improvement Proposal in two phases. Accordingly, in the 1st phase the capacity of 4th stream would be 5.25 lakhs TPY which can subsequently expanded upto 7.00 lakhs TPY.

Accordingly the proposal for augmentation of the capacity of 4th stream to 7.00 lakhs TPY has been planned with an estimated cost of Rs.400 Crore. An ad hoc sum of Rs.1.00 crores is kept in annual plan 2007-08 for preparation of mines plan and environment clearance, detailed feasibility study etc.

Pottangi Mines: The Panchpatmali Bauxite deposit will last for about 30 years after 2nd phase expansion of Bauxite Mines. The capacity of Mines after 2nd Phase expansion will become 63 Million TPY. In case NALCO upgrades the 4th stream capacity to 7.00 lakhs TPY and installs a 5th stream in future, the Mines capacity will become 8.925 Million TPY and the life will come down to about 21 year.


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Keeping this in view, NALCO has earlier applied for Mining lease over Pottangi Bauxite Deposit, which has been agreed by Government of Orissa in principle. It has been planned to develop this mine gradually in the (11th & 12th Five Year Plan) at an estimated investment of about Rs.400 crores.

The capacity of these mines can be about 2.4 to 3.0 Million TPY, which can be achieved in a gradual way. An ad hoc sum of Rs.1.00 crores is kept in 2007-08. 6. Science & Techology(S&T) The Plan Outlay for the FY 2007-08 is Rs. 3.00 crore..

Chapter-III Reform Measures and Policy Initiatives

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CHAPTER - III

REFORM MEASURES AND POLICY INITIATIVES Consequential amendments in the Rules have also been notified in the Rules. Some of the important amendments in Mineral Concession Rules, 1960 and Mineral Conservation & Development Rules, 1988 are as under:-

1. Time limit for disposal of complete application for Reconnaissance Permit/ Prospecting Licence/Mining Lease has been prescribed in MCR, 60. In case of delay beyond the prescribed limit, the same has to be explained in writing.

2. Time limit for disposal of Mining Plan has also been prescribed in MCR, 1960.

3. Panel provision have also been provided for violation of provisions of MCDR, 1988.

4. Marble Development & Conservation Rules, 2002 have also been notified for conservation & systematic development & scientific

mining to conserve the marble resources and to prescribe a uniform framework with regard to systematic and scientific exploitation of marble throughout the country.

5. Royalty rate/Dead Rent of major minerals (other then Coal, lignite & sand for stowing) have been revised vide Gazette

Notification dated 14.10.2004. 6. Offshore Areas Mineral (Development & Regulation)Act, 2002 has been notified on 31.1.2003. The said Act provides for

development and regulation of mineral resources in the territorial waters, continental shelf, exclusive economic zone and other maritime zones of India and to provide for matters connected therewith or incidental there to.

7. The concept of Final Mine closure Plan & Progressive Mine Closure Plan has been introduced in the Rules which provides for

rehabilitation of area under Mining Lease after its abandonment. 8. Minimum size of Mining Lease has also been prescribed in MCR, 1960 for ensuring scientific & systematic mining.

9. Unified National Framework Clarification (UNFC) has been adopted for estimation of mineral reserves in the country.


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10. Rule 66A providing for special provisions for Atomic Mineral has been amended. 11. Offshore Areas Mineral Concession Rules,2006 have been notified vide GSR 691(E) dated 4/11/2006.

It has been the endeavour of the Ministry of Mines to encourage greater investment in exploration and mining, there is a need to make sustained efforts to increase the same and remove bottlenecks which hinder the productivity and efficiency of this sector. Recognising this need and to further improve the investment climate for mining in the country, the Planning Commission set up a High Level Committee under the Chairmanship of Shri Anwarul Hoda, Member, Planning Commission, to review the National Mineral Policy and recommend possible amendments to the MMDR Act. The High Level Committee submitted its report to the Government on 20th July,2006 with recommendations on changes in the National Mineral Policy to attune it to the present requirements of the world economy for evolving of mining code adapted to the best international practices, streamlining and simplifying of procedures for grant of mineral concessions to reduce delays, strengthening the infrastructure for mining activities and recommendations on other issues for improving the environment for investment in the mining sector.

Policy measures and initiatives of the PSUs and Subordinate Offices 1. Geological Survey of India(GSI) Major initiatives taken:

q On 23rd November, 2006 the GSI Portal for Intranet users at GSI Central Headquarters, Kolkata was inaugurated by Hon’ble Dr. T. Subbarami Reddy, Minister of State, Ministry of Mines. GSI Enterprise Information Portal envisages to provide real time data to various stakeholders and users, including entrepreneurs, academicians and common public.

q A disaster management control room has been created at GSI, New Delhi to be in operation on 24x7 basis and to be connected to the

Disaster Management Support Network, NDMA.

q The state-of-art technology has been inducted in some of the areas in the chemical analysis domain, geological laboratories and in the ground survey areas.


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q Procurement of heliborne geophysical survey system has reached an advance stage. This would provide necessary fillip in mineral exploration by generating close spaced and low altitude geophysical parameters namely magnetic, gravity and time domain electromagnetic and radiometric data.

q The procurement action for research vessel and geotechnical ship is also progressing in the right direction. EFC recommendation

received from the Government for the research vessel and the cabinet note has been submitted.

q For career progression of the scientific officers, approval has been given by the DOPT for implementation of Flexible Complementing Scheme (FCS) and MOM has initiated follow-up action.

2. Mineral Exploration Corporation Limited(MECL) Financial Restructuring : The Government of India has conveyed its approval for financial restructuring and wage revision in MECL which stipulates:

(i) Waiver of interest of Rs.5156.87 lakhs and penal interest of Rs. 727.52 lakhs as on 31.3.2005. Further, no interest would be levied

beyond the cut off date of 31.3.2005. (ii) Conversion of outstanding Government loan of Rs. 3079.66 lakhs into equity effective from 31.3.2005 and also similar conversion of

Non-Plan loan of Rs. 1500.00 lakhs into equity effective from 31.3.2005, thus raising the paid up capital from Rs. 7375.00 lakhs to Rs. 11955.00 lakhs.

(iii) Increase of authorized capital of the company from Rs. 10000.00 lakhs to Rs. 12500.00 lakhs. (iv) Wage revision of the employees to be effective from 1.4.2003 and to be implemented w.e.f. 1.4.2006.

With the approval and implementation of financial restructuring, MECL would be able to purchase critical drilling equipments and accessories for renewal / replacement and further up-gradation of technology which are essentially needed to provide speedy and cost effective mineral exploration services to its client. It would also be possible to generate more work for sustenance, on its own.

Sale of reports : The pricing policy and modalities for dissemination of exploration data / sale of exploration reports prepared under promotional exploration programme has been finalised by Ministry of Mines. Accordingly the details of all the prospects explored have been put on the MECL web site and as and when the queries are received, for any of the deposits, the perspective clients are being informed in brief about the potential mineral prospects explored by MECL and they have been referred to make use on the data available on web site.


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With the finalisation of pricing policy now it is possible for interested agencies / organisation, to obtain the geological report of potential mineral prospect(s) for their perusal at a nominal price. It is expected to facilitate mineral development activity in the country.

3. Indian Bureau of Mines(IBM) Major policy decisions and steps taken:

• In view of the additional activities under the charter of functions of IBM, a detailed proposal for strengthening of IBM has been submitted to the Ministry for consideration.

• A proposal for exemption of scientific and technical posts in IBM from Direct Recruitment Plan brought out by DoPT for

implementation, was submitted to the Ministry so as to maintain existing level of scientific and technical manpower prior to Economic Reforms Commission (ERC).

• A proposal on requirement of additional resources to IBM for prevention and control of illegal mining, was submitted to the Ministry for

consideration.

• Right to Information Act has been implemented as a matter of policy of Govt. of India and is being attended to.

• IT Infrastructure Security Policy of IBM (version 1.0 of 2006) has been framed with a view to implementing information security to safeguard information infrastructure from possible attack through internet or corruption, compromise of data, etc.

• Amendment of Statutes has been proposed to introduce pre-scrutiny period so as to ensure disposal of mining plans/ schemes of mining

within the stipulated period of 90 days.

• To improve the quality of mining plan and reduce back references, a proposal for examination system for grant of recognition to qualified person (RQP) has been submitted to the Ministry for consideration.

• Mine Closure Plan, being a new concept in Indian Mining Sector, a number of training programmes and circulars have been issued to

streamline the procedure.


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• Updation of National Mineral Inventory as on 1.4.2005 adopting UNFC is in progress. By adopting UNF Classification, the mineral reserves/ resources are being expressed in terms of International standards which will permit foreign multi-nationals/entrepreneurs to take the investment decisions in the Indian Mining sector.

• IBM has taken up preparation of multi-mineral maps along with forest overlays which will facilitate dissemination of detailed

information to investors on mineral resources, regional development and also socio-economic upliftment through the newly proposed project on Computerized Online Register of Mine Tenement System. Since the environment is an important factor in development of mineral resources, these mineral maps will allow planning for sustainable development.

• Considering environmental related problems arising from generation of waste rocks incidental to mining operations in different geo-

morphological situations, IBM has proposed a project on Management of Solid Waste from mining in India to extract possible residual mineral from rejects and to use the waste for society's benefit. This will also manage the environmental issues better.

• The result of test work/investigations carried out on (i) low grade mineral resources (low and sub grade mineral deposits) and (ii) mine

and process rejects like waste dumps, tailing, slimes etc. are brought out in the form of Reports of Investigations (R.I). These reports contain process details with flow-sheets/flowchart, grade and recoveries of concentrates with tolerance limit of impurities along with mineralogy and chemical analysis. These reports would help entrepreneurs/sponsor parties to ascertain the possibility of exploitation and effective utilization of the particular ore/mineral deposits or wastes/ rejects for valuable mineral recovery/additional recovery of values. The information is very vital for knowing the technology involved, subsequently assessment of economic viability for commercial application before taking investment decision. IBM will find out the need of the industry for the utilization of low grade minerals and ores and will carry out R&D studies for technological upgradation of minerals/ ores for the industry to contribute accelerated economic growth of the nation.

• IBM maintains data on RPs over large areas granted to the applicants. This will facilitate to keep track of conversion from RP to PL to

ML.

4. Hindustan Copper Limited(HCL) During the financial year 2005-06, company implemented various reform measures aimed at facilitating the process of optimum decentralisation and achievement of optimum level of transparency. It has been made mandatory that all procurement action should be processed through web


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hoisting in respect of individual item of more than Rs 1 lakh and Rs 2 lakh in group of items. This is likely to make the procurement process more transparent and expected benefits are as follows:

1. Enhance confidence level of the supplier 2. Wider participation 3. Competitive rate 4. Minimize scope of grievance/dispute

Company has duly complied with the provision of Right to Information Act and all the necessary data/information in this regard have been posted in the web site for easy accessibility of the general public. Public Information Officer/Assistant Public Information Officer has been duly appointed and particulars duly posted on the web site. Decentralisation: In order to take higher responsibility with greater autonomy in day-to-day functioning by the unit heads, the existing powers delegated to them have been reviewed in a consolidated manner and delegated power has been enhanced. By this process company will be benefited by avoiding delay in decisions making, taking timely action for production process. 5. National Aluminium Company Limited(NALCO)

NALCO is a manufacturing organization producing Bauxite, Alumina, Aluminium and Power; the measurement of the final outcome will be in terms of production quantity of the finished products. For big projects like 2nd Phase Expansion, Utkal Coal – E, which has a longer gestation period, production will commence only on completion of Projects. Quantifiable physical output can not be set on for 2007-08 in respect of these projects except in terms of physical/ financial progress on the project. 6. Science & Technology(S&T) Major initiatives Identification of areas for technological upgradation and development of new technology. In development of a National Facility for Semi-solid forming at Indian Institute of Science, Bangalore. It would be first of its kind in India and would cater to the needs of transport, construction, packaging, aero-space engineering industries and strategic defence applications.

Chapter-IV Review of Past Performance

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CHAPTER - IV

REVIEW OF PAST PERFORMANCE

1. Geological Survey of India(GSI) The GSI has achieved the envisaged physical targets for the F.Y. 2005-06 in respect of most of its activities viz. Ground Surveys (Systematic Geological Mapping, Geochemical Mapping, Geophysical Mapping), Airborne Surveys (Multi-sensor Surveys), Marine Surveys (systematic coverage within Territorial Waters) and large scale mapping in connection to the Mineral Investigations in full or exceeded. There has been some shortfall in the areas of Specialised Thematic Mapping due to diversion of personnel to mineral exploration programme as per Govt. directives. In Mineral Exploration, some additional new items were taken up on Iron and PGE and that has resulted excess achievements in Large Scale Mapping but shortfall in Detailed Mapping. The envisaged targets for F.Y. 2006-07 are on course for achievement in full. Information dissemination related activities were given priority in view of the existing policy of the Government. In the IT field, the Net Portal installation in GSI, particularly the development of System Requirement Study (SRS) has been completed. Master Data preparation for loading has been initiated and the designing and application development in this respect is currently on. The actual physical performances of GSI during 2005-06 and 2006-07(till Dec.) along with reasons for variations are furnished in Annexure II and III. Outcome of 2005-06: The scheme-wise activities carried out by GSI has generated the following outcome: Scheme : Survey & Mapping: Basic earth-science data generation through systematic ground, aerial and marine survey, is a fundamental prerequisite for the proper geo-scientific management for the earth system. Systematic Geological Mapping: Two items of Systematic Geological Mapping, both in Arunachal Pradesh (in parts of East and West Kameng districts and in parts of West Kameng and Tawang districts) were taken up and first phase basic geological data generated.


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Specialised Thematic Mapping: 10,730 sq km of thematic mapping was carried out. Which helped in appropriate understanding of some important issues in the domain of structure, tectonics, stratigraphy, crustal evolution etc in some specific areas. . In addition certain indications for mineralisation were also recorded. Geochemical Mapping: 23,848.30 sq.km has been covered by Geochemical mapping in various states. Processing of data and its interpretation led to follow up mineral investigations during F. S. 2005-06 in Meghalaya and Rajasthan. Geophysical Mapping: ground geophysical mapping in different States has covered 17,863 sq.km. Multisensor Survey: Aero-geophysical multi-sensor data have been acquired over 32,481 Ikm. Marine Survey: Through Samudra Manthan cruises, attained the partial targets set for ONGC sponsored projects. 4505 sq km was covered under the seabed-mapping programme within Territorial Waters. Scheme : Mineral Exploration: Mineral Finds q Coal resource has been augmented by 1948 million tonnes. q Total gold resources in Bhukia Gold Prospect has been estimated to the tune of 47.91 million tonnes with average grade of 1.97 g/t Au. q The investigation of gold at Parasi, Ranchi district, Jharkhand has established a reserve of 0.4 m. tonnes of gold ore with

3.1g/tonne gold (cut off 3.0g/tonne). q An additional resource of 2.4 m tonne of gold-copper ore of possible category has been estimated with 1.56 ppm of gold

and 1.09% copper in Dhani Basri, Dausa district, Rajasthan. q Four new kimberlites, (i) TK-3 &TK-4 at Timmasamudram. (ii) P-14 close to Dibbasanipalle, in Anantapur dt, (iii) and

another Kimberlite body on the left bank of Tungabhadra River near the village Nadigadda Malkapuram in Kurnool dt., has been located in Andhra Pradesh..

q A diamond weighing 0.02 carat was recovered from Bodesanipalli(P14). q An additional reserve of 5.962 m. tonnes of manganese ores with an average grade of 27% Mn (at 20% Mn cut off) has

been estimated in Pacheri-Lasarda sector, Kendujhar dt., Orissa. An additional resource of 20.42 m.tonnes of iron ore (haematite) has been established in Sundergarh dt., Orissa


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q A reserve of 1.9 m tonnes of sedimentary clay and 1.93m tonnes of residual clay has been estimated in Klayikode block, Kasargod district, Kerala.

q 531m tonnes of limestone of various grades (cement, SMS, LD and chemical) has been estimated from Lumsortoh &. Um-maju blocks, west of Litang River, Jaintia Hills, Meghalaya.

Scheme : Specialised Investigation: q A renewed volcanic activity in Barren Island started on 28th May 2005. A team from GSI inspected the volcano on 13th June 2005, collected

pyroclastic materials and reported no out pouring of lava flow. q GSI analyzed the aftermath of unprecedented earthquake (Mw 9.3) and tsunami of 26 December 2004 in Andaman & Nicobar Islands as

well as coastal states of Andhra Pradesh, Tamil Nadu and Kerala from different perspective. Besides allocating earthquake damage intensity via macroseismic survey in Andaman & Nicobar Islands (intensity VII-VIII), GSI prepared tsunami inundation maps with required run up measurements both for the archipelago and the coastal mainland southern states.

q GSI has released a comprehensive document on 26 December 2004 earthquake in September 2005. q GSI had undertaken multi-disciplinary study including macroseismic aftershock monitoring by local network and coseismic slope instability

assessment after the devastating Kashmir earthquake of 8 October 2005 (M 7.6). The maximum seismic intensity on the Indian side was of the order of IX.

q Active fault studies were carried out along the Gavilgarh Fault in Purna Valley Quaternary basin, Maharashtra, Patharia, Dhumdangi -Daspara, Darjeeling District, West Bengal and the Himalayan Frontal Belts between Kosi and Gaula rivers, Nainita! District, Uttaranchal.

q Geological Survey of India, being the 'Nodal Agency' for landslide related studies, was engaged in Landslide Hazard Zonation mapping along with, site specific studies of a few landslides and preparation of Landslide inventory in Ravi Basin, Himachal Pradesh, parts of Darjeeling district. West Bengal and Imphal town, Manipur and also at Sonapur, Jaintia Hills, Meghalaya, B-2 slide North Sikkim Highway and Varunavat area, Uttarkashi, Uttaranchal.

q Site-specific microzonation studies were carried out in Agartala town, Tripura; Mumbai, Maharashtra; Ahmedabad City, Gujarat; Siliguri town, West Bengal; Dehradun Urban Complex, Uttaranchal and Visakhapatnam, Andhra Pradesh.

q 37 items of Geotechnical and engineering geological studies through 196 investigations were undertaken related to Civil

Engineering projects for Water resource development, creation of communication network, transport and other infrastructural facilities in almost all the States of the country.


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q 35 geo-environmental investigations were taken up comprising geoenvironmental appraisal, geoenvironmental impact assessment and studies on natural hazards and geomorphic processes covering public health and landslide issues in addition to 12 items of Syn-Exploration Baseline Data Generation.

Scheme: Research & Development and Other Exploration: R & D : q Riverbed and surface/subsurface sediment study west of Bhagirathi River reveals that the curvilinear patches of flood plains always yield

high arsenic value in shallow aquifers, a definite link with the active/palaeochannel morphology. Flood plains of other rivers occasionally yield higher arsenic value in shallow aquifers flood plain of Damodar River, at Champadanga, Hooghly district. Study to the east of Bhagirathi River shows that in parts of Nadia district, there is high incidence of arsenic in ground water. The distribution pattern of arsenic shows a positive correlation with the active/palaeochannel occurrence. The contact of Holocene and Pleistocene occurs at a depth ranging from 56m to 95m below ground level. Groundwater below this contact is always free of arsenic. Positive arsenic values are mainly confined to Holocene sediments with depth range varying between 21 and 76 metre below ground level.

q The discovery of snake fossil from the Late Cretaceous Lameta Formation of Kheda district, Gujarat. q Zircons grains from a Charnockitic suite of rock from Central Dronning Maud Land, Antarctica, indicated a 207Pb/206Pb ages of 520 to 600

Ma. The age data indicates a Pan - African emplacement event of the Charnockitic suite. q In Nellore Schist Belt U-Pb of granitoids gave ages between 1.8-1.7 Ga while meta-volcanic rocks gave 1989 and 2041 Ma ages though

samples of meta-felsic volcanics yielded Nd model ages 2280 and 2220 Ma. q Pb isotope analyses of zircons from the granitic rocks occurring in the intervening area between the Cuddapah basin and NSB, indicate a

Late Archaean - Palaeoproterozoic age of the granitoids (ca. 2500 Ma). q Six whole rock samples of Bukkapatna granite from the eastern margin of Chitradurga schist belt define a Rb-Sr isochron age of 2907 ± 97

Ma. q Rb and Sr content of 11 WR samples of nepheline syenites from Shusina area, Purulia district, West Bengal yielded a isochron age of ca.

1250 Ma q A mylonitised gneissic granite sample occurring along Gavilgarh -Tan shear zone in Central India yielded an age of 967 ± 14 Ma (Rb/Sr)

implying the date of peak cooling temperature. q One peat sample, collected from Chalsa - Matiali area of Darjeeling district, West Bengal gave a Radiocarbon age of 33873 + 565 - 528 Ybp. q A total of 10 Marl samples pertaining to Kotla Dahar Lake deposits and Lake deposits in the northern margin of Thar Desert, Haryana dated

by Radiocarbon method gave age ranging from 4884± 35Ybp to 6169±36Ybp.


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Antarctic Studies: Led and participated in the XXIV Indian Antarctic Expedition (IAE). Around 1000 sq km was geologically mapped in western Muhlig Hofmann Fjella range. Studies of polar ice front in the Princess Astrid Coast area of central Dronning Maud Land revealed annual average recession of 0.87m of polar ice sheet margin of ‘Dakshin Gangotri glacier’ overriding the southern edge of Schirmacher Oasis. Schme: Information Dissemination: q High priority was accorded to dissemination of geo-scientific information through client-specific customised data, maps and reports. q GSI Net remains one of the thrust areas in the field of IT. q Integration through Intranet and extranet 'PORTAL' offer given to TCS Ltd. GSI PORTAL development is in progress. q Project Digital Archive remained one of the thrust areas during this period. Geological maps on 1:50K are under process of digitisation after compilation for

seamless integration in future. q 22 nos. of Geological Quadrangle Maps published totalling 278 out of 334 (amenable). q Bouguer gravity map of India and Free-Air gravity anomaly and Bouguer gravity anomaly image map of India in 1: 2 million scale are

completed in the draft form q 2 sheets of Sea Bed Maps have been digitised bringing the total to 22 out of 50 sheets. q 29 (twenty nine) publications released (16 priced and 13 unpriced) Scheme: Human Resource Development (Training): Orientation Course for Geologists, Basic Courses, Refresher Courses, Workshops, Advanced Course, INDIGEO Programmes, and ISRO and DST sponsored pogrammes were successfully completed. 7 training courses outside the FSP were conducted of which six were mainly for personnel from Botswana and Bhutan. Trainings for the geoscientists and supporting staffs helped to keep pace with the latest developments and trends in earth sciences and priorities of the department. So far GSITI has conducted 511 training programme and has trained 9788 officials: 8510 from GSI, 1199 from other organisation, 79 from ESCAP and other countries.


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Scheme: Modernisation & Replacement: GSI is pursuing its programme of modernisation in right earnest and recently it has been stepped up. The state-of-the-art technology has been inducted in some of the areas in the various laboratories of the organization and in the ground survey areas. Proposals for acquiring he liborne geophysical survey system, ocean going research vessel and geotechnical vessel are progressing at the desired rate. 2. Mineral Exploration Corporation Limited(MECL) The review of promotional mineral development exploration programme is as under:-

Promotional Mineral Exploration Programme Year Scheme Outlay

(Rs. Lakhs)

Utilised/ Released (Rs. Lakhs)

% Remarks

2005-06 Promotional 1100.00 965.90 88 i) Non commencement of Dholamala, Copper in Rajasthan & Maruda Gold, in Kerala for want of forest clearance.

ii) Delay in commencement of Dona Temple gold, Andhra Pradesh (Suspended in April ’05)

2006-07(Upto Dec-06)

Promotional 1700.00 1180.00 69 It is expected to utilise the approved outlay fully.

During the year 2005-06 the exploration in 6 schemes namely Jiajuri for glass sand, in Assam, Bhagal Phase-II for copper, Rajasthan, Dhadikidih, Nandup & Bayanbil for Copper in Jharkhand and Dona Temple for gold, Andhra Pradesh was continued from 2004-05. In addition exploration in 5 new schemes namely Saipum for shell limestone in Mizoram, Bajta Central & Latio-ka-Khera for lead-zinc in Rajasthan and Ramachandrapahar for copper in Jharkhand and Kolari Bhaonari for lead & zinc in Maharashtra was taken up.


39

MECL also had mobilised its resources to commence exploration for Nimi limestone in Nagaland but the operations were abandoned due to local law & order situation. In addition the exploration in approved schemes, namely Maruda gold in Kerala and Dholamala copper in Rajasthan also could not be commenced for want of forest clearance. Due to the constraints of law & order situation and delay in forest clearances as above, MECL could utilise 88% of the allocation during 2005-06 . During the year 2006-07, exploration in 4 schemes namely Dona Temple for gold in Andhra Pradesh, Kolari-Bhaonari for lead zinc in Maharashtra, Ramchandra Pahar for copper in Jharkhand and Latio-ka-Khera for lead zinc in Rajasthan was being continued from the previous year. In addition, the exploration of 6 new schemes namely Dariba-Akola (Copper), Devtalai Phase-II (Multi-metal), Sanganer for copper, Central Sub Block for lead zinc, & Bhukiya (East) for gold in Rajasthan & Ghari Dongri for gold in Madhya Pradesh have been taken up. Actions have been initiated to take up exploration for lead-zinc in Banaskhapa-Pipariya in Madhya Pradesh and Timaran Mata for gold in Rajasthan. However, the exploration at Lupungpat for bauxite, Intervening block (Area between Ramchandrapahar and Bayanbil) for copper and Ghatkuri East/West for iron ore in Jharkhand State could not be taken up for want of prevailing law and order situation/forest clearance. MECL proposes to take up the work on these schemes as soon as forest clearance is received/law and order situation improves. Till December, 2006 Ministry of Mines has already released Rs. 1180 lakhs . Efforts are being continued to utilize the entire allocation of Rs. 1400 lakhs approved for promotional exploration . Capital Expenditure : During the year 2005-06, an outlay of Rs. 600 lakhs was approved consisting of 100 lakhs GBS and 500 lakhs IEBR and the entire allocation was utilised. For the year 2006-07, an outlay of Rs. 800 lakhs (IEBR) has been approved , out of which expenditure of Rs. 333.00 lakhs has been committed till December,2006. Plants and equipments to be procured during the year have been identified and action initiated for procurement of the same and the fund allocated is expected to be utilised in full.


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3. Indian Bureau of Mines(IBM) Scheme wise physical performance:

The programmes and achievements under various schemes during the last year 2005-2006, in the current year 2006-2007 are given below: - Scheme No. 1 - Inspection of Mines for Scientific and Systematic Mining, Mineral Conservation and Mines Environment: The achievements during the year 2005-2006 & 2006-2007 (upto Dec. 2006) vis-a-vis targets in respect of inspections & studies of mines for promoting systematic and scientific development of mineral deposits, conservation of mineral resources, approval of mining plans, environmental protection & pollution control and administration of MCDR, 1988 are as below: -

2005-06 2006-07

Item Target Achievement Target Achievement

(upto Dec. 2006)

Inspection of Mines for administration of MCD Rules, 1988, approval of mining plans, schemes and mine closure plans.

2,300 2,538 2,500 2,046

Updation of NMI data sheets for private lease holds as on 01/04/2005

7,500 8,000 - -

Mining Geological Studies covering Community Development aspects

- - 12 12 in progress

Acquisition and dissemination of exploration data in respect of Reconna-ssance Permits (RP) / Prospecting Licences (PL) over large areas.

$ 120 RPs / PLs

$ 100 RPs / PLs

$ As and when data received from RPs / PLs holders


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Consequent to inspections and studies, during the year 2006-07 (upto Dec. 2006), 2,110 violations of MCDR, 1988 were pointed out in respect of 920 mines and 1107 violations were rectified. Twenty prosecution cases were launched in various courts, 07 cases were decided and 21 cases were compounded. Besides, mining operations were suspended under Rule 13 (2) of MCDR, 1988 in 04 iron ore mines of Karnataka for gross deviations from the approved mining plan. The suggestions and recommendations offered to the mine owners, have led to conservation of mineral resources, promotion of scientific mining, improvement in performance of mining operation, protection of environment, etc. During the year 2006-07 (upto Dec. 2006), 335 mining plans were approved, 29 not approved, and 238 mining schemes were approved and 41 not approved. Registration of Recognized Qualified Persons (RQP) was granted in 67 cases and refused in 3 cases.

Scheme No.2 - Mineral Beneficiation Studies - Utilization of Low Grade and sub-grade Ores and Analysis of Environmental Samples: Targets and achievements during 2005-2006 & 2006-2007 in respect of Regional Ore Dressing Laboratories at Ajmer, Bangalore and Modern Mineral Processing Laboratory & Pilot Plant at Nagpur are summarized below: -

2005-06 2006-07 Item

Target Achievement Target Achievement (up to Dec. 06)

1. Ore Dressing Investigations

70 71 70 68* + 28 **

2. Chemical Analysis (No. of radicals)

50,000 51,146 50,000 36,112* + 934**

3. Mineralogical Studies 2,300 2,455 2,300 1757* + 48**

4. In-plant Studies @ 11 @ 15

* Completed, ** in progress, @ As and when required


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Enhanced Gravity and Magnetic Separation Studies for Recovery of Values from Plant Tailings and Ore Slimes This project at a cost of 49.25 lakhs was approved by the SSAG in its 31st meeting held on 15 May 2002 and administrative approval of Ministry of Mines was received on 19 September 2002. The project was taken up for implementation during 2003-2004 Beneficiation studies were carried out on 03 iron ore slimes / tailings samples from Dalli (SAIL), Cuddegal (M/s. Fomento) and Codli (M/s. Sesa Goa) Iron Ore Mines and 02 tailing samples from Chrome ore Beneficiation Plants of M/s. Tata Steel and M/s. FACOR using various equipment procured under this project. The study indicated that equipment procured like, Water Only Cyclone and Floatex Density Separator produced better pre-concentrates which yielded higher recoveries by employing Wet High Intensity Magnetic Separator. The project was completed in March 2006 and final report submitted to the Ministry in November 2006.

Establishment of Clay Testing Laboratory in the Regional Office of IBM at Kolkata During the year 2006-07, equipment /instruments required for the laboratory were procured and sent to the Clay Testing Laboratory for installation and commissioning. Scheme No. 3 - Technological upgradation and modernization: Updation of National Mineral Inventory (NMI) The IBM undertakes preparation and periodical updation of inventory of mineral resources of the country. These cover leasehold as well as freehold areas in which the mineral resources have been ascertained through regional or detailed exploration.

During the year 2005-06, the work of updation of NMI adopting UNFC as on 01/04/2005 was taken up. Data sheets in respect of 3,977 freehold and public sector mineral deposits and 8,000 data sheets in respect of private leaseholds were updated. Computerization was taken up and summary outputs for 15 minerals generated.

During the year 2006-07 (upto Dec.2006), the work of updation of NMI adopting UNFC as on 01/04/2005 was continued. Data sheets in respect of 3,754 freehold and public sector mineral deposits were updated. Computerization was in progress and summary outputs for 36 minerals generated.


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Preparation of multi-mineral maps

The IBM prepares the mineral maps of leasehold and freehold areas with forest overlays to supplement the efforts of maintaining the National Mineral Inventory as an aid in planning mineral production on a regional basis.

During the year 2005-2006, 105 multi-mineral leasehold maps on a scale of 1:50,000 along with corresponding forest overlays in respect of Andhra Pradesh were prepared.

During the year 2006-2007 (upto December 2006), collection of data in respect of Karnataka and Tamil Nadu (part) was completed. Preparation of 30 multi-mineral leasehold maps of Karnataka on a scale of 1:50,000 along with corresponding forest overlays was completed and 83 maps of Karnataka were at various stages of completion.

Technical Consultancy Services

Technical Consultancy Services were provided to the mining industry at prescribed charges and on promotional basis.

Targets and achievements for the year 2005-2006 & 2006-2007 and programme for 2007-2008 are as below: -

2005-06 2006-07 Item Target Achievement Target Achievement

(upto Dec.06)

Preparation of Mining Feasibility/ Mining Project / EMP Study Reports and conducting Preliminary Geological Appraisal of mineral deposits/survey assignments, etc. ( No. of assignments )

18

30 07

08

During the year 2006-2007 (upto Dec. 2006), 08 consultancy assignments on (i) Establishment of Co-ordinate in WGS - 84 format by DGPS Survey at Balaghat & Ukwa Manganese Mines for M/s MOIL (ii) Establishment of Co-ordinate in WGS - 84 format by DGPS Survey at Chikla, Tirodi & Dongri - Buzurg Manganese Mines for M/s MOIL (iii) Modified Scheme of Mining of Gorgoan Mine (169.22Ha) of Bhawnathpur Group of Limestone Mines for M/s SAIL (iv) Modified Scheme of Mining of Saraiya Mine (254.55Ha) of Bhawnathpur Group of Limestone Mines for M/s SAIL (v) Modified Scheme of Mining of Ghaghra Mines (333.64Ha) of M/s Bhawnathpur Group of Limestone Mines for M/s SAIL (vi) 6. Excavation measurement at Tailangi chromite mine for M/s IDCOL (vii) Monthly Excavation measurement at 16 LBCM of Malanjkhand Copper Project for M/s HCL from July 2004 to June 2006 (viii) Annual check measurement of coal stock for the year 2005-06 for M/s Coal India Ltd were completed, reports prepared and sent to the concerned parties. Besides, 05 other assignments were in progress.


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Mining Research Applied mining research is carried out on various mining aspects so as to help in systematic development of mines and improvement in productivity in mines through evolution of suitable norms. Industry sponsored assignments on Environmental aspects and Geo-technical investigations, on charge basis are also carried out. During the year 2005-2006, 10 assignments were completed and reports submitted to the concerned parties.

During the year 2006-2007 (upto December 2006), 06 assignments viz (i) Study of Ground Vibration due to blasting at Amli & Tandiberi Limestone mines for M/s Binani Cement Ltd. (ii) Study of ground vibration due to blasting near Chhitorgarh Fort for D.B. Writ Petition No. 1315/1999. (iii) Environmental Monitoring at Copila Gaichem Paul Iron ore Mine in South Goa dist. for the year 2005 for M/s. Fomento Industries, Goa. (iv) Slope stability study at Saniem Iron ore Mine for M/s Sociedada de Fomento Industrial Ltd. (v) Study of ground vibration due to blasting at Bangur Chromite Underground Mine for M/s. OMC and (vi) Geo-technical investigation for assessment of stability of waste dump at deposit No. 5 of Bailadila Iron Ore Project for M/s. NMDC, were completed, reports prepared and sent to the concerned parties. Besides, 06 assignments were in progress. Training

Training is an essential input for human resources development particularly in today's environment of advancing technology. IBM imparts training to its technical and non-technical officials and also to the persons in the mineral industry and other agencies in India and abroad.

Targets and achievements during the year 2005-06 & 2006-07 are summarized below :-

2005-06 2006-07 ITEM

Target Achievement Target Achievement(up to Dec. 06) Training Programmes (In-House & Industry personnel )

16 19 (Total participants: 131 from IBM & 367 from Industry)

16 12 (Total participants: 97 from IBM & 180 from Industry)


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S & T Project on Attenuation of Hexavalent Chromium in Sukinda Chromite Belt by Bio-Remediation Technology

This project at a cost of 30.00 lakhs was approved by the SSAG in its 31st meeting held on 15 May 2002 and administrative approval of Ministry of Mines was received in October 2002. The project was taken up for implementation during 2003-2004.

This project was initiated in collaboration with Utkal University, Bhubaneswar for attenuation of Hexavalent Chromium in the mines discharge water from a group of Chromite mines in Sukinda area, Jajpur district, Orissa.

During the year 2005-06, equipments required for this project namely Acid Digestion Chamber and its accessories; Portable Soil and Irrigation Water test kit and Top Loading Balance were procured and handed over to the Utkal University. Besides, preparation of experimental field sites was completed and plantation of grass, paddy and legume saplings was carried out.

During 2006-07 (upto December 2006), first and second paddy crops were cultivated at the experimental site and harvested. Analysis of different components of crops at different growth stages, water and soil samples were carried out by Utkal University. Chemical analysis of acid digested plant and soil samples were carried out at OD Lab of IBM. Destruction of second paddy crop was completed in November 2006 and chemical analysis of plant and soil samples is being carried out at Utkal University. Project will be completed by March 2007.

New Sub-Scheme under Scheme No. 3 - Management of Solid Waste from Mining in India

During a meeting held on 19.12.2006 in the Planning Commission on "Formulation of Annual Plan of IBM for 2007-08", new project proposal on "Management of Solid Waste from Mining in India" at an estimated cost of Rs. 13.43 crores was discussed and as desired, a revised proposal was submitted to the Ministry on 21st December 2006 for consideration of SFC. This project will be taken up for implementation as and when approval of Govt. is received and necessary funds allocated.

Scheme No. 4- Collection, Processing, Dissemination of Data on Mines and Minerals through various publications:

Monographs and Bulletins

The IBM brings out Monographs on individual minerals under the Series `Minerals Facts and Problems' and Bulletins on important technical subjects.


46

During the year 2005-2006, Monograph on Chromite was under modification and updating of Directory of Mineral Consumers in India was in progress. Besides, bulletins on i) Environmental Aspects in Mining Areas and ii) Abrasives in India were released and 02 other bulletins were at various stages of preparation.

During the year 2006-2007 (up to December 2006), monograph on Chromite was under finalisation and updating of Directory of Mineral Consumers in India was in progress. Besides, 02 other bulletins were at various stages of completion. Market Survey

The IBM conducts market survey of mineral commodities. The survey covers the analysis of demand and supply position of minerals and metals over short and long term, both in domestic and international markets.

Targets and achievements during the years 2005-2006 & 2006-2007 are summarized below :-

2005-06 2006-07 Item

Target Achievement Target Achievement (up to Dec. 06)

Iron ore (Drafting)

Completed Iron ore (Finalisation) Under finalisation Preparation of Market Survey Reports Marble, Flaggy

Limestone & Slate

Released - -

End-use Metal Consumption for Copper, Lead & Zinc

04 Quarterly reports (2005)

Achieved 04 Quarterly reports (2006)

03 Quarterly reports prepared

Compilation and Dissemination of Statistics and Information on Mines & Minerals

The IBM has been receiving information on mineral production, stocks, despatches, employment, inputs in mining, mining machinery, demand and consumption of explosives and related aspects from mining industry on statutory basis through various returns under the MCDR, 1988. Besides, ancillary statistics on production of minor minerals, world mineral production and trade are also collected from various other agencies. This information is published in the form of different publications, notable among those being Indian Minerals Yearbook (IMYB). The other


47

periodical publications are Statistical Profile of Minerals (Annual), Indian Mineral Industry at a Glance (Annual), Bulletin of Mineral Information (Half-yearly), Monthly Statistics of Mineral Production (MSMP). During the year 2005-06, IMYB 2004 was released. Besides, Digest of Minor Mineral Laws of India, Indian Mineral Industry at a Glance 2003-04, Bulletin on Mining Leases and Prospecting Licences, 2003, two half-yearly issues of Bulletin of Mineral Information (October 2003-March 2004 and April – September 2004), and twelve issues (January to December, 2005) of MSMP were released. Besides, Directory of Mines as on 31.3.2005 and Directory of Mining Leases as on 31.3.2005 were updated. During the year 2006-07 (upto December 2006) IMYB 2005 issue was released and preparation of IMYB 2006 issue was in progress. Besides, Indian Mineral Industry at a Glance 2004-05, Statistical Profile of Minerals 2004-05, Bulletin on Mineral Royalties, Bulletin on Mining Leases and Prospecting Licences 2004, two half-yearly issues of Bulletin of Mineral Information (October 2004-March 2005 and April – September 2005) and 5 issues (January-May 2006) of MSMP were released. Besides, Comparative study of Mining Laws of India and five other countries was released, while preparation of Comparative study of Mining Laws of India and Australia, Indian Mineral Industry at a Glance 2005-06, Statistical Profile of Minerals 2005-06 and Bulletin on Mining Leases & Prospecting Licences 2005 was in progress. Updation of Directory of Mines as on 31.3.2006 and Directory of Mining Leases as on 31.3.2006 was also in progress. New Sub-Scheme under Scheme No. 4 During a meeting held on 19.12.2006 in the Planning Commission on "Formulation of Annual Plan of IBM for 2007-08", a new project proposal on "Computerized Online Register of Mining Tenements System" at an estimated cost of Rs. 21.03 crores, was discussed and as desired, a revised proposal was submitted to the Ministry on 21st December 2006 for consideration of SFC. This project will be taken up for implementation as and when approval of Govt. is received and necessary funds allocated.

Advising Central and State Governments on matters connected with the mining and mineral industry The IBM continued to advise the Central and State Governments on matters in regard to Mineral Industry, relating to environmental protection and pollution control, trade, mineral legislation, export-import policies, recovery of by-products, demand and supply of minerals, renewal of mining leases, etc. Besides, material for answering Parliament Questions were also supplied to the Ministry.Assistance was also rendered to private parties, institutions and foreign organizations on subjects like mineral production, consumption and other statistics.


48

Construction Programme IBM has its own Headquarters building at Nagpur and office & residential complexes at Ajmer, Bangalore, Jabalpur, Margao and Udaipur, and office building and clay testing laboratory at Kolkata.

Generation of Revenue Through Promotional Activities

IBM generates revenue through its promotional activities. No targets for revenue generation have been fixed as per the decision taken during the 13th meeting of IBM Advisory Board. During 2005-06, a revenue of Rs. 131.27 lakhs was generated by taking up consultancy work in mining, geology, ore processing and mining research work, training, processing of mining plan/scheme of mining and through sale of publications, mineral inventory etc.

During 2006-07 (up to December, 2006) a revenue of Rs. 135.97 lakhs was generated by taking up consultancy work in mining, geology, ore processing and mining research work, training, processing of mining plan/scheme of mining and through sale of publications, mineral inventory etc.

Work Done in North-Eastern Region

Sub-regional office of IBM at Guwahati continued to undertake inspection of mines/studies on development of resources of the North-Eastern region.

During the year 2005-06, 27 mines were inspected for enforcement of MCDR, 1988 and for processing of mining plans. Two consultancy assignments were completed. Besides, three training programmes were conducted, in which, 61 officials from NE region participated. Equipment / instruments worth Rs. 195.96 lakhs were provided to various NE States.

During the year 2006-07 (upto Dec.2006), 04 mines were inspected for enforcement of MCDR, 1988 and for processing of mining plans. One consultancy assignment on Ground vibration study due to blasting at Kheilijhri limestone mine for M/s. Meghalaya Cements Ltd. in Jaintiya Hills District, Meghalaya was taken up and field work completed. Preparation of report is in progress. Besides, two training programmes exclusively for the personnel from North-Eastern region, on (i) Windows, MS office, Excel etc. and (ii) Environmental Monitoring in Mines were conducted. A total of 19 officials from North-Eastern region were benefited from these training programmes. In a meeting with DGMs of NE States, equipment/instruments to be provided to the NE States for strengthening their capabilities for development of minerals in their states, were identified and supply orders for equipment / instruments worth Rs. 109.28 lakhs were placed. Out of this, so far, equipment/instruments worth Rs. 106.29 lakhs were procured and supplied to various NE States.


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Outcome / Target in the outcome budget Scheme wise Out come / Target in the outcome budget 2005-06 and 2006-07 ( April - Dec. 2006) are enclosed as Annexure -I I and III. respectively.

Role of private sector in respect of minerals / metals With the changes in the Government Policy, a number of minerals, which were hitherto reserved for Public Sector, have been thrown open for Private Sector for exploration and exploitation. Through liberalization, so far, as many as 207 reconnaissance permits (RP) in favour of multinational companies of both India and abroad have been approved / granted for aerial prospecting in the States of Andhra Pradesh, Chattisgarh, Gujarat, Haryana, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Orissa, Rajasthan, Uttar Pradesh and West Bengal covering an area of 2,91,221 sq. km for various high value minerals like gold, silver, copper, lead, zinc, nickel, cobalt, tungsten, wolframite, antimony, bismuth, cadmium, arsenic, molybdenum, platinum, diamond & other precious stones, ilmenite, garnet, pyrite, dunite etc. Mineral Resources

The National Mineral Inventory prepared by IBM as on 1.4.2000 has indicated the total mineral resources in the country. The percentage share of private sector is summarised below:

Recoverable mineral reserves in leasehold areas in India as on 01/4/2000

Group Share of total reserves in Private Sector Leaseholds ( %)

Non-ferrous minerals 04 Ferrous minerals 33 Non-metallic Minerals 84

Mineral Production The present share of mining & quarrying sector in total GDP of the country is about 2.64% by value. The total value of mineral production has continuously increased over the past few decades and has risen from Rs.70 crores in 1950 to Rs. 82,833 crores (excluding atomic minerals) in the year 2005-06. The contribution of the fuel sector in the total value was about Rs.61,485 crores in the year 2005-06. The metallic and non-


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metallic groups contributed Rs. 11,486 crores and Rs.2,728 crores respectively. The share of private sector during the year 2005-06 of these groups is summarised below:

Value of mineral production : 2005-06 (p)

Mineral Group Total (Rs. in crores) Share of Private Sector Metallic minerals 11,486 59 % Non-Metallic minerals 2,728 73 %

A break-up of the area of dominance of the private sector in the mineral industry is given below :

Degree of dominance of private sector : 2005-06 (p)

Contribution of private sector to total production

Minerals

100% Agate, Asbestos, Calcite, Chalk, Clay (others), Corundum, Felsite, Felspar, Jasper, Lime-kankar, Lead Conc., Mica, (waste & scrap), Ochre, Perlite, Pyroxenite, Quartzite, Slate, Steatite, Wollastonite and Zinc Conc.

+90% Fireclay, Garnet (abrasive), Kaolin, Laterite, Limestone, Pyrophyllite, Quartz, Shale, Silver and Silica sand. +75% Ball clay, Chromite, Diaspore and Limeshell. +50% Bauxite, Graphite, Iron ore, Manganese ore, Tin Conc. and Vermiculite

(p) Provisional The private sector is also engaged in ore processing and grinding of a variety of minerals such as steatite, barytes, calcite, dolomite, felspar, magnesite, wollastonite, gypsum, limestone, kaolin, silica sand and precious/semi-precious stones such as corundum, diamond etc.

The private sector dominates the non-metallic minerals production in the country. The total number of mining leases granted in respect of metallic and non-metallic minerals as on 31/03/2005 was 7,527 of which 7,020 leases were granted to private sector.


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The total number of reporting mines in respect of metallic and non-metallic minerals during 2005-06 was 2,398 of which 2,174 mines were being operated in private sector. Break-up of number of reporting mines in private sector according to mineral groups is given below:

Working mines in private sector during 2005-06 (p)

Mineral Group No. of working mines Share of Private Sector

Metallic Minerals 507 86%

Non-Metallic Minerals 1,667 92%

Total 2,174 91%

(p) Provisional

Mineral Beneficiation

Major beneficiation activities are mainly carried out by Government organizations like Indian Bureau of Mines (IBM), Jawaharlal Nehru Aluminium Research Development and Design Centre (JNARDDC), Bhabha Atomic Research Centre (BARC). The central government undertakings involved in mineral beneficiation activities are National Mineral Development Corporation (NMDC), National Aluminium Company Ltd. (NALCO), Hindustan Copper Ltd. (HCL), Indian Rare Earths Ltd. (IREL), Steel Authority of India Ltd. (SAIL),) etc.

The CSIR institutions involved are National Metallurgical Laboratory (NML) at Jamshedpur and Chennai, Regional Research Laboratory at Bhubaneswar, Thiruvanathapuram, Bhopal and Jorhat. The state government departments and undertakings involved are Rajasthan State Mines and Minerals Ltd. (RSMML), Gujarat Mineral Development Corporation Ltd. (GMDC), Hutti Gold Mines Ltd. (HGML), Directorates of Mining and Geology (DMG), Karnataka and Rajasthan. The academic institutions involved are Indian Institute of Technology (IIT) at Kharagpur, Chennai, Mumbai and Kanpur, Indian School of Mines (ISM) Dhanbad, Indian Institute of Science (IISc) Bangalore, Gulbarga University, Karnataka, etc. Some private organizations involved in beneficiation and processing work such as Orissa Industries Ltd., FACOR, Hindustan Zinc Ltd., (Vedanta), Associated Cements Co. Ltd. (ACC), Bharat Aluminium Co. Ltd (BALCO), Hindustan Aluminium Co. Ltd. (HINDALCO), Tata Iron and Steel Company Ltd. (TISCO), Tata Research Development and Design Centre (TRDDC), Tamil Nadu Magnesite Co. Ltd. (TNMCL), Beach Minerals Sand Company, Fomento Goa, Sesa Goa Ltd., V.S. Dempo and Company Ltd., Mangalam Cements Ltd., Binani Cements Ltd., V.V Minerals, Indian Aluminium Co. Ltd. etc. are also active in the in-house R&D work related to mineral beneficiation and processing work.


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Export

Various minerals and mineral based products are also exported by the private sector. The most important among these are Diamond (mostly cut), Chromite, Iron ore, Granite, precious & semi precious Stones, Manganese ore, Bentonite, various Ferro-alloys, Bauxite, Mica, etc. The most important mineral product that is exported is of course, cut & polished diamonds and this industry is almost entirely in the private sector. However, the diamond export is dependent on raw imported diamonds. Other exports of mineral based products include granite and marble, which are dominated by the private sector. Some quantities of cement and steel, where private sector has an important role, are also exported.

Employment

During the year 2005-06, the mining and quarrying sector in India provided employment to about 5.46 lakhs in metallic, non-metallic and fuel sectors excluding minor minerals. About 78% of the employment was in fuel sector i.e. in coal and lignite mines. Private sector's share was about 0.83 lakh employees mainly in metallic and non-metallic mineral groups contributing 87 % and the rest 13% by fuel minerals. The distribution of the employment over different groups of minerals for the year 2005-06 is given below:

Employment in Private Sector during 2005-06 (p)

Mineral Group Employment (%)

Metallic minerals 52 Non-Metallic minerals 71 Fuel minerals 03

(p) Provisional


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4. Hindustan Copper Limited(HCL) The actual production of Metal In Concentrate (MIC) and Copper Cathode vis-à-vis targets set during the year 2005-06 and 2006-07(upto Dec’06) are given hereunder:

(In Tonne) Particulars 2005-06 2006-07(Upto Dec’06) Target Actual Target Actual Metal In Concentrate 31000 22984 20905 21328 Copper Cathode 40000 36087 30830 27415

MIC production during the year 2005-06 was lower than the target, as earlier, sufficient resources could not be spent on mine development activity due to fund crisis which affected mine production substantially. In addition, heavy rains at MCP, which produces bulk of the Metal In Concentrate affected mine production in the open cast mine adversely. Lower metal production from mines coupled with smelter shutdown work at KCC resulted into lower cathode production also. Similarly, during the first nine months of 2006-07 i.e from April’06 to December’06, cathode production was lower than the target due to smelter shutdown work at ICC and frequent equipment breakdowns particularly at KCC smelter. The detailed plan expenditures undertaken during the above mentioned two years have also been highlighted in Annexures II & III respectively.


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5. National Aluminium Company Limited(NALCO) The achievement of quantified deliverable/ physical output up to 31.3.2006 mentioned in the outcome budget 2005-06 is furnished at Annexure-I I. However, summarized achievement is given hereunder:

( Rs.In crore) Sl. No.

Name of the Scheme/

programme (Product)

Target of deliverable/

physical output (MT)


physical output (MT)

Outlay(Rs./Cr)

BE:2005-06

Outlay(Rs./Cr) RE : 2005-06

Actual Expen-diture

(Rs./Cr.)

1 Spl.Grade Hydrate 5,700 5,473 1.26 1.50 1.49

2 Spl.Grade Alumina 1,781 1,713

3 Zeolite 8,840 7,740 4 Rolled Product 6,000 5,040 1,6.91 7.70 1.95 5 1st Phase

Expansion

a) Bauxite Mine (Bauxite) 48,00,000 48,54,253

b) Alumina Plant (Alumina) 15,76,500 15,78,000 9.18 0.80 0.37

c) Smelter Plant (Aluminium) 3,49,040 3,58,594 40.27 26.87 19.12

d) CPP 5571 MU 5679 MU 11.81 15.87 9.34 6 Addition &

Modification 75.00 60.00 59.78

7 2nd Phase Expansion 290.28 106.42 129.87

8 Utkal E Coal 5.00 0.93 2.46 9 Qutar Project 1.00 0.00 0.00

Total : 450.71 220.09 224.38


55

As may be observed the actual production/ output has surpassed the physical target set in the outcome budget 2005-06 for the major products, such as Bauxite, Alumina, Power and Aluminium. As regards to the Capital outlay the actual expenditures has surpassed the capital outlay set in the RE 2005-06. The achievement of quantified deliverable/ physical output up to 31.12.2006 vis-à-vis in the outcome budget 2006-07 is furnished at Annexure-III. However, summarized achievement is given hereunder:

Achievements upto 31st Dec.2006 in Outcome Budget 2006-07

Rs. In crore Sl. No.

Name of the Scheme/ programme


physical output (MT) for 06-07

Achievement of deliverable/ physical

output (MT) up to Dec.'06

Outlay (Rs./Cr)

(BE: 2006-07)

Outlay (Rs./Cr)

(RE:2006-07)

Actual Expenditure

(Rs./Cr.) Upto Dec-06

1. Addition & Modification a) Bauxite (MT) 48,00,000 31,99,881 b) Alumina Hydrate (MT) 15,75,000 10,79,500 c) Metal (MT) 345,000 272,696 d) Power (MU) 6391 MU 4431 MU

95.00

95.45

38.04

2. 2nd Phase Expansion 520.97 524.47 311.42

3. Utkal E Coal 5.17 5.17 4.99 4. Quatar Project 1.00 0.00 0.00 Total : 622.14 625.09 354.45

As may be observed the actual production upto Dec-06 of major products compared to annual target is ranging from 67% to 80% of Annual Targets. The shortfall in production of alumina Hydrate is due to heavy rainfall in 2006 and failure of few sections of cooling towers. Presently, the monthly production level has been stabilized. However, the shortfall in production by about one lakh MT is not likely to be made good by


56

the end of financial year. The production of Bauxite is just sufficient to meet the requirement of alumina production. The metal production remained more than normal. The power generation was better than that of last year upto Nov’06. However, due to breakdown of T.G. bearing of 7th & 8th Unit, now after repairs, the annual target is expected to be achieved. As regards to the actual Capital expenditure upto Dec-06, it is about 57% of RE 2006-07 targets. However, the second phase activity has taken momentum and it is expected that the Budgeted expenditure target will be met by the year end i.e. 31st March, 2007.. As of Dec’06, the commitment of around 50% of Project cost has been made which will in turn help in improvement of spending under capital outlay. 6. Science & Technology(S&T)

Following projects were completed during the period (2005-06 and 2006-07-upto Dec.,2006) under review:

(i) Investigations into the noise status of some selected non-coal mining complexes with a view to developing abatement and control measures – Indian School of Mining, Dhanbad.

The project was approved in 2002 at a cost of Rs.13 lakhs to be financed by MOM. The objective was to assess the prevailing noise status of the three selected non-coal mining complexes, Noise impact assessment and Noise Modelling and Development of suitable noise abatement & control measures, if necessary. The project was completed by August 2005. The benefits accrued from the project are that Noise pollution and its impact on hearing impairment in the miners and the surrounding population would be reduced through the abatement measures. (ii) Compilation of bauxite Technical Data Bank for Gujarat, Jharkhand and Eastern Ghats – JNARDDC, Nagpur. The project was approved in 2001 at a cost of Rs.22.51 lakhs to be financed by MOM. The objective was to prepare basic technical data and information on the laterite and bauxite resources of Gujarat, Eastern Ghats and Jharkhands States, Characterization of the above bauxite resources as per their physical, chemical, mineralogical, technological parameters for alumina production and other industrial applications, Prepare technological data of identified promising laterite-bauxite deposits for mining and Categorization & classifying of the bauxite and laterite deposits as per their industrial value. The project was completed by September 2005.


57

The benefits accrued from the project are that the compilation would be source for all information for faster investment decisions to probable user in the states of Gujarat and Jharkhand. (ii) Development of a process for electro-refining of aluminium – CERL, Tamilnadu. The project was approved in 2001 at a cost of Rs.43.8 lakhs to be financed by MOM. The objective of the project was to develop an improved process for the electro-refining of aluminium metal and operate refining cells up to 2kA capacity for producing super pure aluminium. The project was completed by March 2005. The benefits accrued from the project are that the Hoops process refines aluminium to super purity, level with high energy consumption (15-18 KWH/kg). The method under development would consume less energy and would maintain the purity level. (iv) Research & Development in enhanced gravity and magnetic separation studies for recovery of values from Plant tailing & ore slimes – IBM Nagpur. The project was approved in 2002 (Administrative approval from the Ministry) however work started from 2003 after receipt of relevant samples at a cost of Rs.49.25 lakhs to be financed by IBM. The objective was to develop a suitable beneficiation process to recover iron, chromite and lead values present in fine/ultra fine particles of tailings/waste materials. The out-put of the project will help in reducing air and water pollution and load on tailing dams. The project was completed by March 2006. The benefits accrued from the project are that conservation of mineral and protection of environment would be the benefited.

(v) Characterization and upgradation of some limestone deposits of North Eastern Region, India for value addition and rational utilization - Regional Research Laboratory, Jorhat

This project was approved in 2003 at accost of Rs. 20 lakh to be financed by Ministry of Mines. The objective of the study was detailed

characterization of limestone occurrences in Meghalaya and North-Cachar through beneficiation studies. This project will provide information for various limestone based industrial applications.

(vi) Studies on production of alloyed pig iron using chromite overburden – MECON, Ranchi.


58

The project was approved in 1998 at a cost of Rs.90 lakhs to be financed by MOM Rs.65 lakhs, DST Rs.2.5 lakhs. The objective of the project is to use the chromite overburden to produce a sinter of requisite quality for making low alloy pig iron through mini blast furnace at Kalinga Iron Works, Barbil, Orissa. In the second phase, the pilot plant trials are proposed for producing low alloy pig iron. The project was completed by May 2005. The benefits accrued from the project are that the dumped waste chromite overburden (COB) containing 0.6 – 0.9% Nickel at present is a source of environmental pollution and occupy the land permanently. The waste would be used gainfully. Work done in North Eastern Region: Two S&T projects in the north-eastern region are under various stages of completion 1 Characterization and upgradation of some limestone deposits of North Eastern Region, India for value addition and rational

utilization. Regional Research Laboratory, Jorhat 2. Pilot scale smelting and pre-feasibility studies on nickel-chromium-cobalt bearing magnetite ores of Nagaland for an

economically viable plant. National Metallurgical Laboratory, Jamshedpur

Chapter-V Financial Review

59

CHAPTER – V

FINANCIAL REVIEW

A. Financial review covering overall trends in expenditure vis-à-vis budget estimates /revised estimates In BE 2006-2007 the approved Budget of this Ministry was Rs. 495.02 crores comprising Rs. 241.00 crores (Plan) and Rs. 254.02 crores (Non-Plan). Against this, the RE 2006-2007 was Rs.507.51 crores comprising of Rs 190.00 crores (Plan) and Rs. 317.51 crores (Non-Plan). BE 2007-2008 is being kept at Rs.389.70 crores comprising Rs. 154.00 crores (Plan) and Rs. 235.70 crores (Non-Plan). The object head wise classification and schemewise overall trend in expenditure has been given in tabular form in the following pages.


60

STATEMENT SHWOING SCHEME-WISE/PSU-WISE BE, RE & ACTUALS OF 2004-05, 2005-06 AND BE, RE & ANTICIPATED(UPTO DEC.,2006)

(Rs. in Crores) Sl. Name of Public Sector Undertakings ANNUAL PLAN ANNUAL PLAN ANNUAL PLAN No. Name of Schemes / Projects 2004 - 2005 2005-2006 2006-2007

BE RE Actual BE RE Actual BE RE Ant.(upto 1 2 3 4 5 6 7 8 9 10 12/06) 11

I. NATIONAL ALUMINIUM CO. LTD.

A.1 SCHEMES COMPLETED DURING 2001 - 02

1 Special Grade Alumina - 1.15 2 Zeolite - 3.85 2.68 1.26 1.50 1.49 0.00 0.00 0.00 3 Equity Participation in I.A.P.L.(Rolled Product Unit) 11.43 10.00 2.87 16.91 7.70 1.95 0.00 0.00 0.00 TOTAL (A.1) 11.43 15.00 5.55 18.17 9.20 3.44 0.00 0.00 0.00

A.2 CRITICAL ON GOING SCHEMES

1 Mines & Refinery 8.88 15.00 4.35 9.18 0.80 0.37 0.00 0.00 0.00 2 Smelter & Power Plant 63.82 51.00 56.84 40.27 26.87 19.12 0.00 0.00 0.00 3 VIII Unit of C.P.P 50.87 40.00 30.29 11.81 15.87 9.34 0.00 0.00 0.00 TOTAL (A.2) 123.57 106.00 91.48 61.26 43.54 28.83 0.00 0.00 0.00

B. SCHEMES AIMED AT MAXIMISING BENEFITS 75.00 40.00 51.84 75.00 60.00 59.78 95.00 95.45 0.00


61

(Rs. in Crores)

Sl. Name of Public Sector Undertakings ANNUAL PLAN ANNUAL PLAN ANNUAL PLAN No. Name of Schemes / Projects 2004 - 2005 2005-2006 2006-2007

BE RE Actual BE RE Actual BE RE Ant.(upto 1 2 3 4 5 6 7 8 9 10 12/06) 11 C. NEW SCHEMES

1 Alumina 4th Stream 20.00 10.00 3.39 290.28 106.42 129.87 192.07 524.47 311.42 2 Aluminium 4th Pot line 40.00 0.00 212.90 3 CPP (2x120MW) 30.00 0.00 116.00 4 Equity Participation of Quatar Project 1.00 0.93 0.00 1.00 38.04 5 Coal Mine (one block) 10.00 1.00 5.00 2.46 5.17 5.17 4.99 TOTAL ( C): 100.00 11.00 3.39 296.28 107.35 132.33 527.14 529.64 354.45 TOTAL (NALCO) : 310.00 172.00 152.26 450.71 220.09 224.38 622.14 625.09 354.45 II HINDUSTAN COPPER LTD.

A.1 SCHEMES COMPLETED DURING 2000 - 01

A.2 CRITICAL ON GOING SCHEMES B. SCHEMES AIMED AT MAXIMISING BENEFITS

1 Replacement & Renewals 40.00 40.00 40.00 40.00 0.00 0.00 30.00 28.50 20.00 2 Research & Development 3 TOTAL (HCL) : 40.00 40.00 40.00 40.00 0.00 0.00 30.00 28.50 20.00


62

(Rs. in Crores)



III MINERAL EXPLORATION CORPORATION LTD. - PROMOTIONAL 10.00 10.00 9.24 11.00 11.00 9.69 17.00 14.00 11.8 - CAPITAL 2.00 2.00 2.00 5.00 6.00 5.00 8.00 8.00 3.33 TOTAL (MECL) : 12.00 12.00 11.24 16.00 17.00 14.69 25.00 22.00 15.13

IV GEOLOGICAL SURVEY OF INDIA

1 Survey & Mapping 41.61 39.06 31.55 41.00 36.05 33.36 38.00 37.70 27.96 2 Mineral Exploration 24.26 21.17 17.26 23.00 18.96 18.78 21.00 20.83 14.12 3 Specialised Investigatin 8.09 6.08 4.66 6.00 5.17 5.03 5.00 5.00 3.1 4 Other Exploration 0.15 0.10 0.12 5 Research & Development 8.68 7.81 6.23 9.35 7.21 7.33 8.00 8.00 5.33 6 Information & Dissemination 30.62 22.44 24.10 22.00 22.93 20.53 21.00 19.54 9.55 7 Human Resource Development 3.20 2.96 2.43 3.15 2.36 2.30 3.00 2.57 1.53 8 Modernisation & Replacement 45.39 37.75 30.41 42.00 42.82 40.95 69.50 34.36 14.28 TOTAL (GSI) : 162.00 137.37 116.76 146.50 135.50 128.28 165.50 128.00 75.87


63

(Rs. in Crores)



V INDIAN BUREAU OF MINES

1 Scheme No.1 : Inspection of Mines for Scientific and 4.08 5.39 3.60 4.20 7.02 7.12 5.12 6.64 5.38 Systematic Mining, Mineral conservation and mine environment

2 Scheme No.2 :Mineral Beneficiation studies 6.41 5.98 5.32 6.00 6.00 5.88 5.24 5.18 3.56 utilisation of low grade and subgrade ores and analysis of environmental samples

3 Scheme No.3: Technical Upgradation and 4.66 4.51 4.28 4.50 4.50 4.29 6.32 3.87 2.76 modernisation

4 Scheme No.4: Collection processing, dissemination 1.49 1.43 1.40 1.85 1.84 1.75 4.29 1.31 1.06 of data on mines and minerals through various publication

5 Capital Expenditure (Works Outlay) 0.00 0.00 0.00 0.10 0.10 Capital Outlay (NER) 0.06 0.06 0.00 0.03 0.04 0.15 Lump sum provision for NER 1.80 0.00 0.00 1.82 0.96

6(I) BRGM - Schemes-TMIS-Project.III 0.06 0.10 6(ii) BRGM - Schemes-Physico Chemical-Project.IV 1.50 3.26 3.21 0.00 0.02 1.82 6(iii) Token Provision for New Schemes 0.00 0.00

TOTAL (IBM) : 20.00 20.63 17.81 18.50 19.50 19.12 24.00 17.00 12.76


64

(Rs. in Crores)



VI SCIENCE & TECHNOLOGY PROGRAMMES 8.55 8.55 6.73 7.43 7.43 5.96 8.05 6.04 1.80

VII CONSTRUCTION 6.00 5.50 3.10 6.00 6.00 6.00 9.00 5.33 NA GRAND TOTAL : MINISTRY OF MINES 558.55 396.05 347.90 685.14 405.52 398.43 883.69 831.96 480.01


65

Object Head-wise Classification

(Rs. in crores) BE 20062007 RE 2006-2007 BE 2007-2008 Plan Non-

Plan Total

Plan Non- Plan

Total Plan Non-Plan

Total

1 2 3 4 5 6 7 8 9 10 1. Direction &Administration

(Secretariat, Ministry of Mines)

8.86 8.86 9.01 9.01 9.66 9.66

2. Non-Ferrous Metals (i) National Aluminium Co.

Limited

(a) Investment in equity (b) Loan Sub Total Total : Aluminium (ii) Hindustan Zinc Limited (a) Investment in equity - - - (b) Loan Total : Zinc & Lead (iii) Hindustan Copper Limited (a) Investment in equity 30.00 - 30.00 28.50 - 28.50 - - - (b) Loan 25.00 25.00 25.00 25.00 (c ) Non-Plan Loan Total : Copper Total : Non-Ferrous Metals 30.00 25.00 55.00 28.50 25.00 53.50 - - -


66

1. 2.- 3. 4. 5. 6. 7. 8. 9. 10. 3. Other Mining and

Metallurgical Industries

Mineral Exploration Corpn. Ltd.

(a) Investment in equity 0.01 0.01 - - - (b) Loan ( c) Non-Plan Loan Total : Other Mining &

Metallurgical Industries 0.01 0.01 - - -

4.

Survey,Exploration, Regulation &Development of Mines

(i) Geological Survey of India (a) Revenue 76.44 197.71 274.15 85.82 197.02 282.84 59.10 204.14 263.24 (b) Capital 72.51 72.51 28.00 28.00 51.60 51.60 Total (a)+B 148.95 197.71 346.66 113.82 197.02 310.84 110.70 204.14 314.84 (ii) Indian Bureau of Mines (a)Revenue 20.38 16.13 36.51 14.35 16.41 30.76 14.00 17.11 31.11 (b) capital 1.22 - 1.22 0.95 - 0.95 1.30 1.30 Total (a) + (b) 21.60 16.13 37.73 15.30 16.41 31.71 15.30 17.11 31.11 (iii) Grants to MECL 17.00 17.00 14.00 14.00 11.00 11.00 (iv) Grants to BGML 3.41 3.41 - 8.06 8.06 - 1.46 1.46 (v) Grants to HCL (vi)Science&Technology 4.50 2.30 6.80 2.49 2.56 5.05 3.00 2.70 5.70 (vii)International Cooperation 0.28 0.28 0.28 0.28 - 0.28 0.28 (viii)National Mineral Awards

(ix) Waiver of interest to MECL

0.33 -

0.33 -

-

0.33 58.84

0.33 -

- -

0.35 -

0.35 -


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1. 2.

3.

4.

5

6.

7.

8.

9.

10.

Total: Survey, Exploration, Regulation & Development of Mines

192.05

220.16

412.21

145.61

283.50

429.11

140.00

226.04

366.04

5. Lump sum provision to North Eastern Region & Sikkim

(i) Geological Survey of India 16.55 14.18 14.18 12.30 12.30

(ii) Indian Bureau of Mines 2.40 1.70 1.70 1.70 1.70

Total: Lump sum provision to North Eastern Region & Sikkim

18.95 15.88 15.88 14.00 14.00

Grand Total : 241.00 254.02 495.02 190.00

317.51

507.51 154.00 235.70 389.70


68

ANNUAL PLAN 2007-2008

The PSUs/Organisation-wise distribution of Approved Outlay for Annual Plan 2007-08 showing Internal Resources ( IR), Extra Budgetary Resources(EBR), Gross Budget Support (GBS), Net Budget Support( NBS), and External Aid is given below:-

Rs. / Crores S.No. Orgnisation OUTLAY IR EBR G.B.S. N.B.S. Ext.

Aid NER

1 National Aluminium Company Ltd. 1158.00 1158.00 -- - - 2 Hindustan Copper Ltd. 50.00 50.00 3 Mineral Exploration Corpn.ltd. - Promotional 11.00 11.00 11.00 - Capital 8.00 8.00 4 Geological Survey of India 123.00 123.00 123.00 12.30 Construction(GSI) 5.00 5.00 5.00 5 Indian Bureau of Mines 17.00 17.00 17.00 1.70 Construction(IBM) 1.00 1.00 1.00 6 Science & Technology 7.29 3.62 0.67 3.00 3.00

Total : 1380.29 1219.62 0.67 160.00 160.00 14.00 1. 10% of BS of only GSI & IBM is earmarked for expenditure in NER. 2. GBS in respect of loss making PSUs as well as those having no activities

in North East Region and Foreign Aid component are exempted from earmarking of 10%.


69

B Position of utilization certificates

The pendency of utilization certificate as on 31.12.2006 is Nil.

C.Unspent balances with the State Government and other implementation agencies as on 31.12.2006 Part-A Unspent balance with State Governments

(Rs. in crore) Name of the State

Item as shown in the Statement of Budget Estimates (Exp. Budget Vol. II)

AP …. ….

….

….

West Bengal

NCT of Delhi

Pondichery

NIL Part-B Unspent balance with State Governments

(Rs. In crore) Name of the State

Item as shown in the Statement of Budget Estimates (Exp. Budget Vol. II)

AP …. ….

….

….

West Bengal

NCT of Delhi

Pondichery

NIL Note: The “Implementation Agencies here would refer to those entities other than State Government, which received the funds directly from the Ministry/Department.


70

Part-C Unspent balance with State Governments However there are some PSU to whom grant/equity/loan are given:-

(Rs. in crore) Unspent balance grant

of last years Grant released in 2006-07

Unspent balance for quarter ending 31.12.2006

Grant to HCL(Non-Plan Expenditure) 4.87 Nil 0.49 HCL(renewal and replacement- Plan Expenditure Nil 20.00 Nil Grant to BGML Nil 1.78 Nil MECL (Equity) Nil Nil Nil MECL (Promotional) Nil 11.80* 3.00 * MECL has been given this amount for promotional work to be done upto in 3rd quarter of 2006-07. The amount of Rs.3.00 crore will be adjusted by MECL up to 31st March 2007.

Chapter-VI Review of Performance of Statutory and Autonomous Bodies

71

CHAPTER-VI

REVIEW OF PERFORMANCE OF STATUTORY AND AUTONOMOUS BODIES

Centre of Excellence Three Centres of excellence viz (a) National Institute of Rock Mechanics (Ground Controls & Rock Mechanics) (b) Jawarhar Lal Nehru Aluminium Research Development & Design Centre (Bauxite, Alumina & Aluminium) and (c) National Institute of Miners’ Health have been setup. Their activities are highlighted below: National Institute of Rock Mechanics (NIRM)

The National Institute of Rock Mechanics (NIRM) is a premier centre for research in applied and basic rock mechanics. It is an ISO 9001 : 2000 certified research institute. set up under the Ministry of Mines, Government of India. The Institute provides research and consultancy services for improving safety and productivity in the mining and civil engineering sectors. NIRM has a proven expertise in the key areas of numerical modelling, geophysical exploration and ground control investigations for hard rock mines. The major areas of research include:

• Optimum design of mining operations and excavation systems; • Design of support system for improving safety, conservation and productivity. • Prediction of unknown subsurface features, Monitoring stability of excavations.

During the reporting year, NIRM investigated the stability of the LDBH and open stopes at Hutti gold mine through instrumentation and monitoring. NIRM conducted training courses for the granite/dimensional stone quarry operators under the financial assistance from UNIDO, and has been assisting CDOS in setting up a Test House for dimensional stones at Jaipur. One of the major thrust areas of the Institute is to improve safety and productivity of underground coal mines in the country. NIRM is involved in assessing the feasibility of new mining methods and safe roof supports in coal mines. The strata control investigations in this sector include :


72

• Rock mass characterization, and RMR studies. • Design of rock reinforcement systems. • Coal mine pillar design. • Development of new mining methods for increased safety and productivity. • Study of parting behaviour in multiple seam extraction. • Mapping of barriers around old workings from underground.

During the period, the Institute undertook studies mostly in the mines of SCCL and WCL. NIRM carried out strata monitoring in two panels. Strata control investigations have been undertaken for mechanized mines, for study of the longwall panels and the Blasting gallery panels in the SCCL. NIRM is also associated with the caveability studies of the roof strata in the continuous miner panel in VK-7 incline, Kothagudem Division, SCCL. Hydro-electric Projects The Institute has been involved in conducting rock mechanics studies required for excavations in several hydroelectric projects in India. Main areas of rock engineering investigations carried out by NIRM in this field include:

• Investigations for determination of the in-situ stress and deformability properties. • Geophysical investigations for bed rock delineation and stratigraphic mapping • Instrumentation and monitoring • Numerical modelling for stress analysis and design of support systems. • Design of controlled blasting parameters

Investigations were carried out at various projects including Tala hydro-electric project (Bhutan), Sardar Sarovar project (Gujarat), Koldam hydro-electric project (Himachal Pradesh), Larji hydro-electric project (Himachal Pradesh), Nathpa-Jhakri project and Rampur projects of Satluj Jal Vidyut Nigam (Himachal Pradesh) Dibang Multipurpose hydro-electric project (Arunachal Pradesh) and Pykara hydro-electric project (Tamil Nadu). Civil Construction Projects

NIRM has carried out feasibility study for making bricks from mill tailings, KGF. NIRM has been involved in a big way in various investigations related to the prestigious Katra-Qazigund rail link project in the mountainous terrains in Jammu & Kashmir. Geophysical investigations were carried out at various tunnel portals and bridge abutments proposed along the 140 km long railway line. Rock samples from


73

these sites were tested to determine their physico-mechanical properties. NIRM has been continuing the investigations related to geotechnical mapping and blast design for the first underground LPG storage cavern of the country being constructed in Visakhapatnam. NIRM carried out the ground penetrating radar survey for mapping oil leak flow path at MRPL (Karnataka). Testing services

In addition to these field investigations, NIRM has done extensive testing of rock samples as per international standards. The studies carried out on various rock samples include:

• Measurement of strain at high temperature under uniaxial and triaxial compressive stress conditions • Thermo-mechanical behaviour of rocks

Fundamental research in the area of engineering and mechanical properties of rock joints under shear, and studies on Kaiser effect, were some of the areas of the Institute in the field of Fracture Mechanics. Further, wire rope testing and non-destructive testing (NDT) of mining equipment / components were carried out on regular basis.

Performance at a Glance

NIRM Scientists published 15 technical papers during the year 2006-07 (upto 31st Dec 2006) and 27 technical reports on the projects undertaken by the Institute were released. The Institute has registered an external cash flow of Rs. 185 lakhs during the period April to December 2006. It is expected that the external cash flow may touch around Rs.350 lakhs by the end of March 2007. The Institute completed two in-house projects and worked on 11 S&T projects and 36 industry sponsored projects, out of which one S&T project and 16 industry sponsored projects were completed. With active interaction with industry, the Institute has undertaken 22 new externally funded projects and one Coal S&T project. NIRM was able to sustain the Institute’s Development Fund (corpus fund), and at present the balance in the fund is 600 lakhs

Finance

During 2005-2006, the expenditure exclusive of depreciation was Rs.245.95 lakhs against an income of Rs.257.94 lakhs. The Institute added Rs.136.00 lakhs to the institute development fund. The Ministry of Mines released a grant of Rs.115 lakhs under (Non-Plan) during 2005-2006.


74

National Institute of Miners’ Health (NIMH) National Institute of Miners’ Health conducts basic and applied research in the field of occupational health and hygiene for subjects employed in mining and mineral based industry. Pursuing its vision of “Safe Mines and Healthy Miners”, the Institute has carried out following work in the year 2006-07. Research Highlights The Institute conducted research on“Equipment Induced Vibration Diseases (EIVD)” the findings of which were published in leading journals and highlighted in local press. It was observed that about 20% of mining population is exposed to vibration. Operators of heavy earth moving machineries (HEMM) are regularly exposed to harmful levels of equipment induced vibration. The Institute has developed state-of-the-art capability for providing occupational health surveillance programme for the mining industry regarding evaluation, monitoring and control of equipment vibration and associated health risks. Environmental Monitoring studies in Mines During the year 2006-07, NIMH has conducted Environmental Monitoring studies in 4 mines of National Mineral Development Corporation Limited (NMDC), 1 mine of National Aluminium Company Limited (NALCO) and 2 mines of ACC Limited.

During the above study, NIMH had collected and studied 57 samples for respirable dust concentration and free silica analysis (Area monitoring), 44 samples for respirable dust and free silica analysis (personal dust exposure), 10 samples for Area Noise Survey, 125 samples for Personal Noise Dozimetry and 118 samples for Whole Body Vibration. The total number of samples collected and analyzed was 354. Findings of the above studies have been submitted to the respective organizations. S &T project of Coal The project on coal started at Western Coal Fields Limited (WCL). Baseline data of 1553 employees working in Nagpur area of WCL has been collected and compiled. Detailed medical examination of a sub-sample of employees for audiometric, spirometry, hematology and biochemical variables will soon be conducted. Field survey for respirable dust survey, area noise monitoring, personal noise dose monitoring and human whole body vibration studies was conducted in Kamptee opencast mine of WCL.


75

Human Resources Development 1) During the year, NIMH staff participated in seven training Workshops/ seminars/symposia on ILO Classification 2000, Biomedical Communication, Ion Chromatography, Environmental Health and Safety etc. 2) Total 12 in-house seminars delivered at NIMH during 2005-06.

3) Interactive meeting of Medical Doctors of Western Coal Fields Limited was held at National Institute of Miners’ Health, Nagpur on 14th November 2006. The meeting comprised lecture and question- answer session by Dr A K Srivastava, Director, NIMH, demonstration of sampling equipments by NIMH staff followed by visit of different sections of NIMH by visiting doctors and detailed discussion on the role of NIMH in prevention of diseases in coal mines. Publications

1. Mandal BB and Srivastava AK. Mechanization, vibration and the Indian Work Force. Asia-Pacific Newsletter on Occupational Health and Safety, Finish Institute of occupational health, 2006; 13:38-40.

2) Mandal BB and Srivastava AK. Risk from vibration in Indian Mines. Indian Indian Journal of Occupational and Environmental Medicine, Vol.10: 55-57.

3) Zade PD, Dharmadhikari DM, Kulkarni D. K. Crystal structure of HgFe2O4. Current Science, July 2006.

4) Sarang V. Dhatrak, Vijay Thawani, Prakash Khandelwal and Manasi

Thawani. The Role of Probiotics, Prebiotics and Synbiotics in Health. The Antiseptic, Vol. 103, No. 6, June 2006, 311-313. 5) Mandal BB, Debasis Chatterjee, N. P. Kulkarni, P. D. Zade, A. P. Vanerkar, S.C. Narwadiya, N. R. Thote. Whole body vibration exposure of heavy earth moving machinery operators in Indian Mines. Indian Mining and Engineering Journal, vol. 45, No.9, 29-30. 6) A. P. Vanerkar, P. D. Zade, N. P. Kulkarni and A. Kamavisdar. Studies on monitoring of Respirable Dust in Limestone Mine Area – A Case Study. Indian Journal of Environmental Protection, Vol. 26, No. 3, August 2006.


76

Other Activities

1) 27th Governing Body Meeting of National Institute of Miners’ Health was held at New Delhi on 18th May 2006. 2) Draft vision document “NIMH 2020” has been prepared and circulated amongst the Governing Body, General Body and Research

Advisory Council members. 3) Detailed information in respect of NIMH is made available at the official website of the Institute http://www.nimh.gov.in. 4) The staff of NIMH and JNARDDC jointly celebrated Independence Day on 15th August 2006. 5) The staff of NIMH and JNARDDC jointly celebrated Hindi Saptaha from 14th to 20th September 2006. Mr. Atul P Vanerkar, Atul P. Vanerkar, Scientific Assistant was awarded PhD in Chemistry by Rashtrasant Tukdoji Maharaj University,

Nagpur on “Treatment of Pharmaceutical Wastewater (Herbal & Antibiotic) by Physiochemical, Biological and Advanced Tertiary Techniques”

7) Total 11 numbers of dignitaries visited NIMH during 2006-07. Projects in Pipeline

1) Respirable dust survey - Work Order for two seasons received from Donimalai Iron-ore Mines of NMDC and for one season from Neyveli Lignite Corporation. 2) Noise and Vibration survey – Work order received from Neyveli Lignite Corporation.

3) NIMH has sent quotation on enquiry for conducting respirable dust, personal noise studies, human vibration studies and periodic medical examination at 7 underground and 2 opencast mines of MOIL and Rajanka Limestone Mines of Chaibasa Cement Works of ACC Limited.

4) As a part of business development activity, Twelve (12) Mines located in Orissa and 2 mines located in Jharkhand state have been identified and contacted telephonically for conducting environmental and medical studies from NIMH at their respective mines. All of them responded positively and “Schedule of Rates” has been sent to them on their request.

Jawaharlal Nehru Aluminium Research Development and Design Centre, (JNARDDC) JNARDDC was registered as a society in 1987. The objective of the Centre is to assimilate the technology available in the country and abroad for the production of alumina & aluminum including aluminium alloys as well as develop technical know-how for the basic engineering process


77

and downstream areas. The centre also provides technological support for setting up Alumina refinery in the country. Furthermore the Centre caters to the R&D needs of Primary Producers. With a total strength of 49 employees (including 23 Scientists), during April-December, 2006 the Centre has completed two national & one international projects. Subsequently nine projects are under implementation. JNARDDC has also got excellent response in the field of organizing Training Programmes. The Centre successfully provided a one month Training Course on “Alumina”. Technology and Characterisation Techniques” to trainees of M/s. Vedanta Alumina Ltd., Lanjigarh, Orissa worth Rs. 7.33 lakhs. Similarly, a Training Programme on “Aluminium Technology” for NALCO, Angul Operators is presently under progress. The Training programme is expected to generate about Rupees One Crore revenue to the Centre over the next two years Director, JNARDDC alongwith other Government Officials represented India as a part of the Aluminium Task Force in the Asia-Pacific Partnership Meet on Clean Development & Climate held in Berkeley, USA from 19-21st April, 2006. In this regard India is likely to take part in two global projects alongwith China & Australia. An income of Rs. 96.08 lakhs was generated till December, 2006. This is the highest internal revenue generation by the Centre during the lastfive years. During 2006-07, a budget support of Rs. 98 lakhs (Plan) and Rs. 100 lakhs (Non-Plan) has been provided. For 2007-08 a provision of Rs.100.00 lakhs (Plan) and Rs.120.00 lakhs (Non-Plan) has been kept.. New Project: i) Studies on Production of Alloyed Pig Iron andLow alloyed/stainless steel using chromite overburden

This project is being jointly sponsored by Ministry of Mines, Department of Science & Technology and Metallurgical & Engineering Consultants (MECON) India Ltd. The main objective of this study was the development of technology for production of nickel bearing alloyed metal through blast furnace route by extracting maximum iron, nickel and some amount of chromium from discarded chromite overburden. During the course of this work, the beneficiation flow-sheet was developed and sintering parameters were optimized on laboratory as well as pilot plant scale. Industrial trials demonstrated that the produced nickel-chromium bearing alloyed pig-iron is suitable for production of low-alloy steel. It may result in considerable saving as ferro-alloys specially ferro-nickel plates are presently being imported.


78

ii) National Facility for Semi-Solid Forming (NSSF) The project is being implemented by the Department of Mechanical Engineering, Indian Institute of Science, Bangalore. This facility is first of its kind in India and would cater to the needs of transport, construction, packaging, aerospace-engineering industries and strategic defence applications besides providing training to industry personnel. Aluminium is one of the most widely used metal in the form of castings. This project envisages development of a novel casting process such as squeeze casting and semi-solid forming for producing lighter yet stronger aluminium castings. This research programme is being sponsored jointly by Ministry of Mines, Department of Science & Technology and Defence Research & Development Organization. It comprises in-house development/installation of Electro Magnetic Stirring (EMS) & casting plant to produce non-dendritic billets, processing of SSF billets into components by die-casting process, generation of vital data through extensive material characterization besides testing and transfer of technology to Indian industry.

79

Annexure-I OUTCOME BUDGET 2007-08

(Rs. in lakhs) S. No.

Name of Scheme/ Programme

Objective/ Outcome

Outlay 2007-08 Quantifiable Deliverables/ Physical Outputs

Projected Outcomes

Processes/ Timelines

Remarks/ Risk Factors

1 2 3 4(i) 4(ii) 4(iii) 5 6 7 8 Non-

Plan Plan Comple-

mentary Extra Budgetary Resources

1.

Geological Survey of India

(i)Survey & Mapping

Creation and updating of national geoscientific information and knowledge base through ground, marine and airborne surveys

- 2938.00 - (i) Specialised Thematic Mapping(in sq.kms.)5400 (ii)Geochemical Mapping(in sq.kms.)26000

Furnished in Appendix.-I item(a)

Continuation of Schemes from the last Financial Year (2006-07) and the quantified outputs will be completed as per schedule.

There may be shortfall due to following reasons: Ø Age of the Blue Water Research Vessel and Geotechnical Vessels

80

1 2 3 4(i) 4(ii) 4(iii) 5 6 7 8 (iii)Geophysical

Maping(in sq.kms.)18000 (iv) Multisensor Survey (in lkm.) 28000 Marine Survey: (v)Mapping in EEZ by R.V. Samundramanthan - Parametric Studies (vi)Systematic Coverage within TW(Sqkm)1500.

Ø MOD & DGCA clearance for Airborne Surveys Ø Forest

Clearance Ø Change

of Thrust Areas, if any, as per the Govt. directives

(ii)Mineral Exploration

Identification as well as preliminary assessment of the mineral resources.

1175.00 (i)Large Scale Mapping(sqkm)

1990 (ii)Detailed

Mapping(sqkm) 28

(iii)Drilling(m) 83400

Furnished in Appendix.-I item(b)

-do-

(iii)Specialised Investiga-tion

Geoscientific input to water resource development, transport and miscellaneous civil

31.00 (in nos.)70 Furnished in Appendix.-I item(c)

-do-

81

1 2 3 4(i) 4(ii) 4(iii) 5 6 7 8 engineering projects. Geo-environmental investigations for both regional and site specific studies. Greater emphasis on natural hazard studies and disaster management including earthquake and landslide zonation studies.

(iv) Research & Develop-ment and other Exploration

Study of Antarctic Continent Petrology, Palaeontology, Geochronology, Photo Geology and Remote Sensing etc.

396.00 (in sq.km. (1:50,000 scale) 1000

(in nos.)68

Furnished in Appendix.-I item(d)

-do-

82

1 2 3 4(i) 4(ii) 4(iii) 5 6 7 8 for support to various ongoing projects and to sort out the identified problems.

(v)Information Dissemi- nation

Computerised archival, analyses, retrieval of geoscientific data and creation of theme-based relational database. Dissemination of data through maps, publications, customization etc.

894.00 ( in nos.)43 Furnished in Appendix.-I item (e)

-do-

(vi)Human Resources Develop-ment

Training in specialised fields for upgradation of technology and expertise.

100.00 (No. of Types/No. of courses)30 (40 courses)

Furnished in Appendix.-I item(f)

-do-

83

1 2 3 4(i) 4(ii) 4(iii) 5 6 7 8

(vii)Moder-nisation and Replace- ment

Modernisation and expansion of laboratories and survey facilities aiming at refurbishing and upgrading the in-house capabilities of GSI.

5536.00 - Furnished in Appendix.-I item(g)

-do-

(vii)Provision from NER

Development of North Eastern Areas

1230.00 1.Survey Mapping :i)Systematic Geological Mapping (sq.km.)600 ii) Specialised Thematic Mapping (in sqkm) 100 iii) Geochemical Mapping (in sqkm)4000 iv) Geophysical Mapping (in sqkm) 2000 2.Mineral Exploration (i)LargeScale Mapping (sq.km)10 (ii)Detailed Mapping (sq.km.)2 (iii)Drilling

84

1 2 3 4(i) 4(ii) 4(iii) 5 6 7 8 (metre)1600 3.Specialised Investigation-20 4.Research &

85

1 2 3 4(i) 4(ii) 4(iii) 5 6 7 8

Total: (GSI) 12300.00

Development-2 5.Information Dissemination-2

86

1 2 3 4(i) 4(ii) 4(iii) 5 6 7 8 Plan

This is for maintain-ing basic adminis-trative expenses of GSI.

20414.00

Total:(GSI) Non-Plan

20414.00

Total: GSI

20414.00 12300.00

2.

Mineral Explo-ration Corpora-tion Ltd.

(i) Promotional

Proving of Mineral Reserves

1100.00 (i)Drilling:24000mts. (ii)Dev.mining:

1000m. (iii)Associated

geological activities (mapping, survey, sampling analysis,

geological report and ore body modeling).

Preparation and submission of Geological reports incorporating delineation of structure of ore body along with

1 to 1.5 years for physical work & submission of report.

Wherever, the mineral prospects are located in forest area and the exploration shall be taken up subject to necessary forest clearance.

87

1 2 3 4(i) 4(ii) 4(iii) 5 6 7 8

geological reserves.

(ii)Capital 800.00 Replacement of plants & equipment.

To improve the productivity and performance.

One year

Total: MECL

1100.00 800.00

3.

Indian Bureau of Mines

1.Inspection of mines for scientific and systematic mining, mineral conservation and mines environ-

To ensure systematic and sustainable development of mineral resources, promotion of conservation of minerals, protection of

600.10 For enforcement of MCDR and approval of Mining Plans/Scheme of Mining, 2500 mines will be inspected and 12 mining geological studies will be carried out. Out come of this scheme is systematic & scientific development of mineral deposits,

The outcome is continued progress and improvement in achieving scientific & systematic mining, mineral conservation, community

Inspection of 2500 mines and 12 mining geological studies will be completed during the year 2007-08.

All the activities under various schemes/ programmes of IBM are in accordance with its charter of functions notified by the Government on 6th March 2003 .

88

1 2 3 4(i) 4(ii) 4(iii) 5 6 7 8 ment. mine

environment through statutory enforcement of MM(D&R) Act 1957, MCDR 1988 and relevant portions of MCR 1960 and community development in mining areas, by carrying out regular inspections/studies of mines, other than coal, petroleum & natural gas, atomic minerals & minor minerals

conservation of minerals, protection of environment and sustainable closure of mines. For this purpose mining plans, scheme of mining & mine closure plans, prepared by the lessees are being approved by IBM and are being monitored for their effective implementation. Community development activities carried out by the mining industry in the mining areas will also be covered during inspections/ studies of mines.

development and protection of mines environment

Fulfillment of the target is subject to the availability of existing strength of inspecting officers, throughout the year.

2.Mineral beneficia-tion studies

To ensure value addition to the low

504.05 The activities under this scheme are carried out in IBM's 3

It is a continuous process for

All these targets will be

Fulfillment of the target is subject to the

89

1 2 3 4(i) 4(ii) 4(iii) 5 6 7 8 utilization of low grade and sub grade ores and analysis of environ-mental samples

grade ores, which are otherwise going as wastes and to help directly or indirectly to the mineral industry for optimum exploitation of mineral resources of the country. Further, analysis of air, water, solid wastes etc. for monitoring of mine effluent parameters are also being carried out.

laboratories and pilot plant situated at Nagpur, Ajmer and Bangalore. In these three laboratories 70 Ore Dressing Investigations, 50,000 Chemical Analysis and 2,300 Mineralogical Examinations will be conducted. Besides, in-plant studies will be carried out as and when required. Most of the mineral deposits found in nature fall short of the grade required by consuming industries and therefore needs upgradation by ore dressing process to suggest ways & means for their economic utilization, as a part of conservation studies.

achieving value addition to the low/sub- grade ores and monitoring of mine effluent parameters. This will also help reclamation /rehabilitation efforts of mine owners which is necessary to monitor mine closure operations.

completed during the year 2007-08.

availability of existing strength of officers & staff, throughout the year.

3.Techno-logical upgrada-tion & Moderni-

To estimate the National Mineral Reserves & Preparation of

297.45 Updation of NMI as on 1-4-2005 will be completed, summary out puts and analytical notes for all the 65

Updated NMI as per UNFC will facilitate planners to formulate

All these activities excepting the proposed

Completion of multi mineral leasehold maps along with forest overlays

90

1 2 3 4(i) 4(ii) 4(iii) 5 6 7 8 zation Mineral Maps

with forest overlays, to ensure development of new mining methods, scientific and systematic development of mineral resources, including environmental management of mines, to develop human resources and infrastructure.

minerals will be generated. Qualitative revision of NMI as on 1.4.2005 and updation of data on RP areas will be done. 100 Multi-Mineral Leasehold Maps along with forest overlays in respect of Maharashtra & Tamil Nadu (part) will be prepared. Technical Consultancy Services - 5-7 Mining/Geological Assignments will be completed. Mining Research Assignments : Regional Environmental Impact Assessment of one area, 2 Environmental/ ground vibration studies and 1-2 geo-technical investigations will be completed. 16 Training courses will be conducted . A new sub-scheme namely, Management of solid

plans and strategies for exploration & exploitation of mineral deposits and entrepreneurs to make investment decisions. Mineral maps with forest overlays will have special significance for chalking out all future plans for ecologically sustainable development. Consultancy/ Mining research assignments will ensure scientific and systematic development of mineral resources

new sub-scheme will be completed during the year 2007-08. Proposed new scheme will be taken up if approved by the Govt. This is a three year project.

is subject to the timely availability of forest maps from FSI. Implementation of proposed new sub-scheme is subject to the approval of Govt..

91

1 2 3 4(i) 4(ii) 4(iii) 5 6 7 8 waste from mining in India will be implemented subject to the approval of the Govt. The outcome of this scheme is to benefit mineral industry through its scientific, techno-economic, research oriented studies and training on various aspects of mining, geology, ore beneficiation and environment to ensure R&D efforts on sustainable mine development with protection of environment & pollution control. Further, the outcome for this scheme is to update the National Mineral Reserves & Preparation of Mineral Maps with forest overlays for proper exploration & exploitation of

including environ-mental management of mines. Training programmes on various aspects of mining, geology, ore beneficiation and environment will improve the skill and knowledge. Implementation of new sub-scheme will bring out economically viable solutions for managing solid waste from mining.

92

1 2 3 4(i) 4(ii) 4(iii) 5 6 7 8 minerals.

4.Collection processing, dissemination of data on mines and minerals through various publications

To collect data on mines and minerals through statutory returns and other means with a view to process, analyze and disseminate the data through various statistical and technical publications.

128.40 Following publications will be prepared / released : i) Monthly Statistics of Mineral Production - 12 issues (Jan-Dec.2007) ii) Indian Mineral Industry at a Glance - i issue. iii) Statistical Profile of Minerals - 1 issue. iv) Bulletin on Mineral Information - 2 issues (Oct.06-March, 07 & April-Sept.07). v) Bulletin on Mining Leases, P.L. & RPs, 2005. vi) Directory of Mines

The outcome for this scheme is to create database on mines and minerals and to disseminate data through various statistical and technical publications, which are very much useful for planning and taking policy decision by Govt. and mineral industry. The entire mining industry and concerned Govt. departments look to IBM

All these publications will be prepared / released during the year 2007-08 and new sub-scheme on computerized online register will be taken up if approved by the Govt. This is a four year project.

In addition to collection of data from statutory sources, IBM also collects data from other sources like all State Govts., DGCI & S, Kolkata, Coal Controller, Kolkata, Ministry of Petroleum & Natural Gas, Ministry of Commerce & Industry, Ministry of Steel, New Delhi, DGMS etc.. Therefore completion of these publications are subject to timely receipt of data

93

1 2 3 4(i) 4(ii) 4(iii) 5 6 7 8 as on 31.3.2007. vii) Directory of Mining Leases as on 31.3.2007. viii) Indian Minerals Year Book 2006. ix) Directory of Mineral Consumers in India. x) Monograph on chromite. xi) Comparative Study of Mining Laws of India and Australia. xii) Bulletin on Recent Developments in Blasting Technology. xiii)Bulletin on Application of Rock Mechanics in surface and underground excavations. xiv) Market survey on

as the agency for providing statistical & other related information on mining and mineral industries in the Country. IBM has also been recognized as one of the sub-system of National Information system of science and technology (NISSAT).

from these sources. Implementation of proposed new sub-scheme is subject to the approval of the Govt.

94

1 2 3 4(i) 4(ii) 4(iii) 5 6 7 8 iron ore. Besides, a new sub-scheme viz Computerized Online Register on Mining Tenements System will be implemented subject to the approval of the Govt. This project will enable various agencies engaged in development and regulation of mineral resources to have access to information on mineral bearing areas those are already leased out and freehold areas those are yet to be leased out. Mining industry will also be facilitate with access to information on status of applications for grant of mineral titles through internet.

95

1 2 3 4(i) 4(ii) 4(iii) 5 6 7 8 5.Provision

for NER

Development of mineral sector in NER Capital Outlay

49.00 121.00

Following activities will be carried out in NE Region: (i) Mines will be inspected for enforcement of provision of MCDR. (ii) Beneficiation tests on low grade ores and minerals available in NE States. (iii) Extend consultancy services to mining industry as and when request received from NER States (iv) Impart training to personnel of mining industry of NE States (v) Providing instruments/ equipment to the state governments of NE States to strengthen

These activities will help to develop the mineral sector in NE Region.

All these activities will be carried out during 2007-08.

96

1 2 3 4(i) 4(ii) 4(iii) 5 6 7 8 their capabilities for development of minerals in their states

Total (IBM) Plan

- 1700.00

For maintaining basic administrative expenses of IBM

1711.00 -

Total (IBM) Non-Plan

1711.00 - -

Total (IBM) 1711.00 1700.00 - 4.

Bharat Gold Mines Ltd. For meeting expenses on main-tenance of essential services.

146.00 As BGML was closed,therefore, no quantifiable deliverables.

Total:BGML 146.00 - - 5.

Hindustan Copper Ltd.

97

1 2 3 4(i) 4(ii) 4(iii) 5 6 7 8

Replace-ment & Renewals

For achieving Maximum utilization of the existing plant and mines machinery by replacement and renewals.

5000.00 The following are the major equipment which have been proposed to be purchased:- 1)Cleaner & Scavenger Cell 2)Gas scrubbing tower 3)Absorption tower 4)SO2 Blower with accessories 5)Anode Casting System 6)Mobile Crane 7)Auto weigher machine 8)Dryer Assembly 9)Major repair Flash Furnace 10)Dumper 11)Engine Transmission 12)Head Shaft of Primary Crusher.

The replacement and renewal expenditure would be undertaken to maintain the existing level of production by maintaining the availability of equipment/ services at mines and plants. HCL has also fixed up higher production targets during 2007-08 at 31,000 MT of MIC and 42,500 MT of Copper Cathode production

2007-08 Without R&R, the overall production target can not be achieved.

98

1 2 3 4(i) 4(ii) 4(iii) 5 6 7 8 as compared to 29,500 MT MIC and 42,000 Copper Cathode during 2006-07. With steady operation, efficiency parameters like, recovery, yield and specific consumption of inputs would also improve.

6.

Other Pro-grammes:S&T

Research & Development work on mining & non-ferrous

300.00 429.00 R&D Projects catering to the national requirements and for building the capabilities and

Conti-nuous nature of research work.

99

1 2 3 4(i) 4(ii) 4(iii) 5 6 7 8 metals.

strength of the mineral & non-ferrous metals.

Total : (S&T) Plan

300.00 429.00

For meeting of the salary of three autonomous bodies(JNARDDC, NIRM & NIMH and for National Mineral Awards.

333.00

Total : (S&T) Non-Plan

333.00 300.00 429.00

7.

National Alumi-nium Company Ltd.

A.Schemes aimed at Maximi-

To maintain the production/pr

12500.00 Rated capacity is to be maintained at each of the following major

Nil

100

1 2 3 4(i) 4(ii) 4(iii) 5 6 7 8 zing Benefits: Additional/ Modifications/ Renewals/ Replacments (AMRs)

oductivity in different segments of the Company

plant Units. Target for major procucts; Bauxite : 4800000 MT, Alumina : 1575000 MT Aluminium 348241 MT Power: 5863.8MW.

B.New Schemes: 1.Phase-II Expansion : i) Alumina -4th Stream, ii) Aluminium - 4th Pot Line, iii) IX and X units of CPP

Increase in Capacity : Bauxite Mines 4800000 to 6300000 MT, Alumina Refinery : 1575000 to 2100000 MT Smelter : 345000 to 460000 MT, CPP : 960 MW (120 MW x 8) to 1200 MW (120MW x 10)

100000.00 The project is under implementation and is scheduled beyond 2007-08. The Outcome during the year 2007-08 is Nil. After completion of the project with approved outlay of Rs. 4091 Crore(revised project cost at Rs.5048Cr), the expanded output per year i.e. Bauxite of 63 lakh TPY, Alumina of 21 lakh TPY, Power of 1200 MW and Aluminium of 4.60 lakh MT is expected to be achieved in 2008-09.

Nil Schedule start up date from zero date (26.10.2004) Bauxite Mines : 42 Months, Alumina Refinery 46 Months, Smelter : 50 Months, CPP : 47 months.

2. Utkal E- Allotment of a 3000.00 The project is under Nil The

101

1 2 3 4(i) 4(ii) 4(iii) 5 6 7 8 Coal

new captive coal mine by GOI to cater to coal requirement of 9th, 10th, 11th and 12th Units of CPP.

implementation and is scheduled beyond 2007-08. After completion of the project the coal production will be 2.00MINTPY.

project is scheduled to be complete in May,2008.

3.Middleeast project

Exploring for setting of a Smelter plant to produce Aluminium in the energy rich middle east region by utilizing Cheap Gas in setting-up a power plant and utilizing surplus alumina of 1.2 Mil.Ton available after 2nd phase expansion.

100.00 Only meant for DPR. Nil Outcome will depend on investment decision.

4. Debottle- necking of

To expand the fourth stream

100.00 Production is likely to commence in 2010-11.

102

1 2 3 4(i) 4(ii) 4(iii) 5 6 7 8 Alumina plant

of alumin plant capacity from 5.5 7.0Lakh ton by improving in technology taken from Alumina Pechiney.

5. Pottangi Mines

To cater the buxite requirement of the Alumina Refinery when the production from fourth stream is taken off.

100.00 Only meant for preproject activities.

Total: NALCO

115800.00

8.

Construc-tion

Building construction in Indian Bureau of Mines &

600.00 GSI: (i)Construction of Training Institute Complex at Hyderabad,

103

1 2 3 4(i) 4(ii) 4(iii) 5 6 7 8 Geological Survey of India.

(ii)Construction of Laboratory Complex and auditorium at Bangalore (iii)Construction of Office-cum-Lab Complex at Shilong, (iv)Construction of Museum and Auditorium at Siwalik Fossil Park, Saket, Dist.Sirmour, H.P., (v)Construction of Auditorium & Guest House at Jaipur, (vi)Construction of Guest House at Shillong (vii)Construction of Office Building at Channai,

104

1 2 3 4(i) 4(ii) 4(iii) 5 6 7 8 (viii) Other miscellaneous projects. IBM:- Construction of Office Building at Guwahati, Bhubaneswar, Dehradun

Total : (Construction) Plan

- 600.00 -

9.

Secretariat Proper This provision is for Secretariat expenditure of the Ministry

966.00 - -

Total: (Sectt. Proper) Non-Plan

966.00 - -

Grand Total: 23570.00 16000.00 122029.00

104

Annexure -II

DETAILS OF ACTUAL ACHIEVEMENTS VIS.A.VIS. INTENDED OUTCOMES INDICATED IN OUTCOME BUDGET 2005-06

000000000000000000000000000000000000000000000000000000000000000000 0 0(Rs. lakhs)

Sl. No.

Name of the Scheme/ Programme

Objectives/ Outcome

Outlay 2005-06 (BE)

Outlay 2005-06 RE

Quantifiable Deliverables Processes / Timeliness

Achievements

Remarks

1 2 3 4 5 6 7 8 9 1 Geological

Survey of India

(i) Survey & Mapping

Creation and updating of national geoscientific information and knowledge base through ground, marine and airborne surveys.

4100.00 3605.00 (i) Specialised Thematic Mapping (in sqkm)11549.80

(ii) Systematic Geological Mapping (in sqkm)420* *Revised (Oringal target was 600sq.km), (iii) Geochemical Mapping (in sqkm) 23858.60 (iv) Geophysical Mapping (in sqkm)16054 (v) Multisensor Survey (in lkm) 28407

Continuation of Schemes from the last Financial Year (2004-05) and the quantified outputs completed as per schedule

(i) Specialised Thematic Mapping (in sqkm)10730.00

(ii) Systematic Geological Mapping (in sqkm)550 (iii) Geochemical Mapping (in sqkm) 23848.30 (iv) Geophysical Mapping (in sqkm) 17863 (v) Multisensor Survey (in lkm)32481

Reasons for Shortfall/ excess in Physical targets for all schemes:- • Specialised

Thematic Mapping

(1:25,000): Due to diversion of personnel to mineral exploration programme as per Govt. directives. • Mineral

Exploration: Some additional new Items on Iron and PGE.

105

1 2 3 4 5 6 7 8 9

Marine Survey : (vi)Mapping in EEZ by R.V Samudramanthan - Parametric studies and sponsored programme of ONGC (vii) Systematic Coverage within TW (sqkm)4200

Marine Survey : (vi)Mapping in EEZ by R.V Samudramanthan - (vii)Parametric studies and sponsored programme of ONGC (viii) Systematic Coverage within TW (sqkm)4505

were taken up due to change in thrust. The above has resulted excess achievement in LSM and shortfall in DM. GSI has given more thrust on programmes with societal impact like Earthquake and Landslide studies.

2.Mineral Exploration

Identification as well as preliminary assessment of the mineral resources.

2300.00 1896.00 (i)Large Scale Mapping (sqkm)1076.140

(ii)Detailed Mapping(sqkm)32.96 (iii)Drilling (m)85501.428

Continuation of Schemes from the last Financial Year (2004-05) and the quantified outputs completed as per schedule

(i)Large Scale Mapping (sqkm)1283..92

(ii)Detailed Mapping(sqkm) 28.8365 (iii)Drilling (m)83708.41

106

1 2 3 4 5 6 7 8 9 3.Specialised

Investigation Geoscientific input to water resource development, transport and miscellaneous civil engineering projects.Geo-environmental investigations for both regional and site specific studies. Greater emphasis on natural hazard studies and disaster management including earthquake and landslide zonation studies.

600.00 517.00 (in nos.)104 Continuation of Schemes from the last Financial Year (2004-05) and the quantified outputs completed as per schedule

(in nos.)104

Study of Antarctic Continent

721.00 (in sq.km.)(1:50,000 scale) 1000

4.Research & Deveopment and other Exploration

Petrology,

935.00

(in nos.)76

Continuation of Schemes from the last Financial Year (2004-05) and the

(in sq.km.) 300 Thematic Mapping on 1:25,000 scale instead of 1:150,000 scale

107

1 2 3 4 5 6 7 8 9 Palaeontology, Geochronology, Photo Geology and Remote Sensing etc. for support to various ongoing projects and to sort out the identified problems.

quantified outputs completed as per schedule

(in nos.)76

5.Infor-mation Dissemi-nation

.Computerised archival, analyses, retrieval of geoscientific data and creation of theme-based relational database. Dissemination of data through maps, publications, customization etc.

2200.00 2293.00 (in nos.)43 Continuation of Schemes from the last Financial Year (2004-05) and the quantified outputs completed as per schedule.

(in nos.)43

6.Human Resources Develop-ment


315.00 236.00 (No..of Types/No.of Courses) 35(52 courses)

Continuation of Schemes from the last Financial Year (2004-05) and the quantified outputs

(No. of Types/No.of Courses)34(43 courses)

108

1 2 3 4 5 6 7 8 9 completed as per schedule

7.Moderni-sation & Replacement


4200.00 4282.00 - Continuation of Schemes from the last Financial Year (2004-05) and the quantified outputs completed as per schedule

-

Total: GSI

14650.00 13550.00

2. Mineral Exploration Corporation Limited

(i)Promo-tional


1100.00 1100.00 (i) Drilling: 9720 mts.

(ii)Dev. mining :205m

(iii)Associated geological activities

(mapping, survey, sampling analysis, geological report

One year

(i) Drilling : 14018 mts (ii) Dev. Mining: 420 m (iii) The exploration work was carried out on six schemes continued from 2004-

Two approved scheme namely Dholamala Copper, Rajasthan at an estimated cost of Rs. 130.94 lakhs and

109

1 2 3 4 5 6 7 8 9 and ore body modeling). 05, while 5 new

schemes were taken up. (iv) Four Geological reports for zinc, glass sand, copper and bauxite were submitted and established 60.28 million tonnes of reserves. While preparation of geological report for 3 schemes are in progress. The details are as under:-

(a) Kalabar zinc deposit, dist. Pali & Ajmer, Rajasthan. Established 1.37 million tonnes of zinc ore reserves with 6.42% Zn & 0.24% Cu. (b) Bhagal Copper deposit, Ph-II, dist. Chittorgarh, Rajasthan. Established 9.23

Maruda gold, Kerala at an estimated cost of Rs. 177.09 lakhs could not be commenced for want of forest clearance.

110

1 2 3 4 5 6 7 8 9 million tonnes of copper ore reserves with average grade of 0.735 % Cu. (c) Jiajuri glass sand deposit, dist. Nagoan, Assam. Established 34.15 million tonnes of reserves with 84.84 – 84.97% SiO2. (d) Serengdag West, bauxite deposit, dist. Gumla, Jharkhand. Established 15.44 million tonnes of reserves with (+) 40 % Al2O3 & (-)8% Si

(ii) * Capital

Replacement of old plants & equipment.

500.00 600.00 Replacement of old plants & equipment.

During the year

(i) Some of the old equipments have been replaced. (ii) The fund has been fully utilised.

*In BE, there was a budget support of Rs.1.00 crore & Rs.4.00 crore through I$EBR. In RE, there was a budget support of Rs.1.00 crore & Rs.5.00 crore through I$EBR.

111

1 2 3 4 5 6 7 8 9

Total: MECL

1600.00 1700.00

3. Indian Bureau of Mines

.

(i)Inspection of mines for scientific and systematic mining, mineral conservation and mines environment.

To ensure systematic and sustainable development of mineral resources, promotion of conservation of minerals, protection of mine environment through statutory enforcement of MM (D&R) Act 1957, MCDR 1988 and relevant portions of MCR 1960, by

420.00 702.00 For enforcement of MCDR and approval of Mining Plans/Scheme of Mining, 2300 mines will be inspected as per the annual programme 2005-06. The out come of this scheme is systematic & scientific development of the mineral deposits, conservation of minerals, protection of environment and sustainable closure of the mines. For this purpose mining plans, scheme of mining & mine closure plans, prepared by the lessees are being approved by IBM and are being monitored for their effective implementation.

To complete 2,300 mines inspection during the year 2005-06.

2,538 mines were inspected.

Consequent to inspection of mines 2,147 violations were pointed out to the mine owners & 1,117 violations rectified; 48 prosecutions launched; 26 cases decided and 21 compounded. 536 mining plans and 284 schemes of mining approved. Incidentally, revenue of Rs.15.12 lakhs was generated. These activities

112

1 2 3 4 5 6 7 8 9 carrying out regular inspections/studies of mines, other than coal, petroleum & natural gas, atomic minerals & minor minerals.

have resulted in systematic & scientific development of mineral deposits, conservation of minerals and protection of environment.

(ii)Mineral Beneficia-tion Studies – Utilization of low grade and sub grade ores and analysis of environ-mental samples.

To ensure value addition to the low grade ores, which are otherwise going as wastes and to help directly or indirectly to the mineral industry for optimum exploitation of mineral resources of the country. Further, analysis of air, water, solid wastes etc. for monitoring of

600.00 600.00 The activities under this scheme are carried out in IBM's 3 laboratories and pilot plants situated at Nagpur, Ajmer and Bangalore. In these three laboratories 70 Ore Dressing Investigations (ODI), 50,000 Chemical Analysis (CA) and 2,300 Mineralogical Examinations (ME) will be conducted as per the annual programme 2005-06. Besides this the S &T project on "Enhanced Gravity and Magnetic Separation Studies for recovery of values from plant tailing and slimes" will be continued and characterization and beneficiation studies are conducted on chromite tailing samples from Sukinda mines

To complete all the activities during the year 2005-06. Further, the S&T project on "Enhanced Gravity and Magnetic Separation Studies for recovery of values from plant tailing and slimes" will also be completed during this year.

71 Ore Dressing Investigations, 51,146 Chemical Analysis and 2,455 Mineralogical Examinations were carried out. In addition 11 in-plant studies/plant visits were completed. S&T Project: Equipments namely Water Only Cyclone, Ferrous Wheel High Gradient Magnetic Separator (lab model) and Floatex Density Separator were procured and installed in the ore dressing laboratory of IBM at Nagpur. With

These activities have ensured value addition to low/sub-grade ores and optimum recovery of ores and minerals. Environmental Parameters could be monitored through analysis of environmental samples. Incidentally, revenue of Rs. 61.90 lakhs was generated. Equipment procured under the S&T project have enhanced

113

1 2 3 4 5 6 7 8 9 mine effluent parameters are also being carried out.

of Orissa. Most of the mineral deposits found in nature fall short of the grade required by consuming industries and therefore needs upgradation by ore dressing process to suggest ways & means for their economic utilization, as a part of conservation studies.

completion of characterisation and beneficiation studies of 2 Chromite tailing samples, the project work was completed. Report was under finalisation.

capabilities of ore dressing division.

(iii)Techno- logical up-gradation and Modernization

To estimate National Mineral Reserves; to prepare Mineral Maps with forest overlays; to ensure development of new mining methods for scientific and systematic development of mineral resources including environ-mental management of mines; and to develop the Human resources and infra-structure.

450.00 450.00 During the year 2005-06 the following activities will be carried out: Updation of NMI as on 1-4-2005 will be completed for 32 minerals and summary out put for 15 minerals will be generated. 100 multi-mineral maps along with forest overlays will be prepared. 18 Mining/Geological assignments & 7 Environmental/Geo-technical assignments will be completed. 16 Training courses will be completed. Besides above, S&T project on “Attenuation of Hexavalent Chromium by bio-remedial technology” will be continued. The outcome of this scheme is

All these activities excepting the S&T project to be completed during the year 2005-06. The S&T project on “Attenuation of Hexavalent Chromium by bio-remedial technology” will be continued during this year and will be completed

Updation of NMI as on 1.4.2005: Collection of data from exploration and exploitation agencies were in progress. Datasheets in respect of 3977 FH & public sector deposits and 8000 Pvt. Lease-holds were updated and summary output generated for 15 minerals. Preparation of multi-mineral maps with forest overlays: 105 multi mineral maps alongwith forest overlays of AP prepared. Technical

Updated inventory will facilitate planners to formulate plans and strategies for exploration and exploitation of mineral deposits and entrepreneurs to make investment decisions. Multi-minerals maps will enable to chalk out future plans for ecological sustainable development. Consultancy/ research oriented

114

1 2 3 4 5 6 7 8 9 to benefit the mineral industry through its scientific, techno-economic, research oriented studies and training on various aspects of mining, geology, ore beneficiation and environment, and to ensure R&D efforts on sustainable mine development with protection of environment & pollution control. This will also update the National Mineral Reserves & prepare Mineral Maps with forest overlays for proper exploration & exploitation of minerals.

next year. . Consultancy Services: 30 assignments completed. Mining Research: 10 assignments completed. Training Programmes 19 courses conducted. S&T Project on Attenuation of Hexavalent Chromium by Bio-remedial technology: Equipments for the project were procured & handed over to the Utkal University. Plantation of grass, paddy & legume was completed. Periodical monitoring of various parameters was carried out and 2nd interim report submitted.

studies on mining, geology, environment etc. have benefited the mineral industry for carrying out scientific and systematic development of mineral resources including environmental management of mines. 133 IBM officials and 367 industry personnel were benefited through training courses. Incidentally, revenue of Rs. 46.04 lakhs was generated through above activities Completion of S & T Project will help to determine the efficacy of

115

1 2 3 4 5 6 7 8 9 removal of Cr6

by bio-remedial process.

(iv)Collec-tion, processing, dissemin-ation of data on mines and minerals through various publications.

To collect data on mines and minerals through statutory returns and other means with a view to process, analyze and disseminate the data through various statistical and technical publications.

184.00 184.00 During the year 2005-06 the following publications will be released :- 12 issues of Monthly Statistics of Mineral Production, Indian Mineral Industry at a Glance, Statistical Profile of Minerals, 2 issues of Bulletin on Mineral Information, Bulletin on Mining Leases, P.L. & RPs, Directory of Mines & Mining Leases as on 31.3.2005, Indian Minerals Year Book (IMYB) 2004, Market Survey on Marble/Flaggy Lime-stone/Slate, Digest of Minor Mineral Laws of India, Directory of Mineral Consumers in India, Comparative Studies of Mining Laws of India and 6 selected countries, Monograph on Chromite, Bulletins on Abrasives in India, Environmental Aspects of Mining Areas, Recent Developments in Blasting Technology, Application of Rock Mechanics.

All these publications to be released during the year 2005-06.

Following publications were released: i) 12 issues of MSMP (Jan-Dec.05) ii) Indian Mineral Industry at a Glance 2003-04. iii) 2 issues of Bulletin on Mineral Information, ( Oct 03-March 04 and April- Sept 04) iv) Bulletin on Mining Leases & P.L, 2003. v) Indian Minerals Year Book (IMYB) 2004, vi) Market Survey on Marble/Flaggy Lime-stone/Slate vii) Digest of Minor Mineral Laws of India viii) Bulletin on

Statistical and technical publications released have facilitated in disseminating data on mines and minerals. Incidentally, revenue of Rs. 8.21 lakhs was generated through sale of publications/data.

116

1 2 3 4 5 6 7 8 9 The outcome for this scheme

is to create data base on mines and minerals and to disseminate data through various statistical and technical publications, which are very much useful for planning and taking policy decision by Govt. and mineral industry. The entire mining industry and concerned Govt. departments look to IBM as the agency for providing statistical & other related information on mining and mineral industries in the Country. IBM has also been recognized as one of sub-system of National Information system of science and technology (NISSAT)..

Abrasives in India ix) Bulletin on Environmental Aspects of Mining Areas Besides, Directory of Mines as on 31.3.2005 and Directory of Mining Leases as on 31.3.2005 were generated.

117

1 2 3 4 5 6 7 8 9 5..Provision

for NER Development of Mineral Sector in NER Capital outlay

182.00 4.00

- 4.00

During the year 2005-06 (i) Mines will be inspected for enforcement of provisions of MCDR. (ii) Beneficiation tests on low grade ores and minerals available in NE states. (iii) Consultancy services to mining industry as and when request received from NE states. (iv) Impart training to personnel of mining industry of NE States. (v) Supply of equipment and instruments to the State Govts of NE States to strengthen their capabilities for development of minerals in their states.

All these activities to be carried out during 2005-06.

i) 27 mines inspected. ii) NIL iii)Two study/TC assignments were completed. iv) Three Training programmes for N-E personnel were conducted in which 61 personnel from NE States participated. v) Equipment / instruments procured by IBM during 2005-06 were supplied to the NE States

Activities carried out in NE Region have contributed to the over all development of mineral sector in the region and also strengthened the capabilities of State DGMs for development of minerals in their states.

6.Capital (Works Outlay)

- 10.00 10.00 Construction of car shade & garage at pilot plant, MIDC, Nagpur.

Work to be completed.

Completed

Total: IBM - 1850.00 1950.00

118

1 2 3 4 5 6 7 8 9 4. Hindustan

Copper Limited

Replace-ment & Renewals

For achieving maximum utilization of the existing plant and mines-machinery by replacement and renewals.

4000.00* - The following are the major equipment which have been purchased:- 1.85T Dumper 2.Engines/ Transmissions of HEME 3.Main Shaft for Tertiary Crusher 4.Rubber lined pipes for dewatering.

Replacement & Renewals is a continuous process to achieve the BE production level. The BE production targets vis-à-vis actuals are as under:- Target:MIC 31000T, Cathode 40000T Actual:MIC 22984T Cathode 36087T

*Ministry of Finance has withdrawn the Rs.40.00 crore as equity provided in BE at RE stage 2005-06. Rs.10.82 crore has been incurred by Company their internal resources.

Total:HCL

4000.00 -

5.. Other Pro-grammes: S&T

Research & Development work on mining & non- ferrous metals.

743.00 743.00 R&D Projects catering to the national requirements and for building the capabilities and strengths of the mineral & non-ferrous metals.

Continuous nature of research work

119

1 2 3 4 5 6 7 8 9 *Total:

S&T

743.00 743.00 *In BE & RE , this includes Rs.3.88 crore through budget support and Rs.3.55 crore through I&EBR.

6. National Aluminium Company Ltd.

A1.Special Gr.Alumina & Zeolite

Installation of capacity to produce 26,000 MT of Special Grade Alumina/ Hydrate and 10,000 MT of Zeolite.

126.00 150.00 Spl.Gr.Alumina/Hydrate:10000 MT Spl.Hydrate : 5700 MT(RE:2005-06) Spl.Alumina: 1781MT (RE:2005-06) Zeolite: 9000 MT Zeolite : 8840 MT (RE;2005-06)

Special Gr.Alumina Plant commissioned in Sept'05. Zeolite and Spl.Gr.Hydrate Plant were operational since 2004-05.

Spl.Hydrate.- 5473MT Spl.Alumina:1713 MT Zeolite – 7740MT

2.Equity Parti-cipation in IAPL (Rolled Product Unit)

Installation of Rolled Product Unit for manufacture of 50000MT of rolled products.

1691.00 770.00 Rolled Product. Capacity : 50,000 MT Production :10,000 MT Rolled Product:6000MT (RE:2005-06)

As committed to the GoI the mechanical completion of all the segments of the project

Rolled Product:5040 MT

120

1 2 3 4 5 6 7 8 9 is expected in Dec,2005. It will take some time before the product is well established in domestic and thereafter in international market. A production target of 6000MT has been kept for the year.

121

1 2 3 4 5 6 7 8 9 A2.Critical

Ongoing Schemes: 1.Phase-I Expansion: Mines & Refinery

Increase in capacity of Bauxite Mines from 24,00,000 MT to 48,00,000 MT and of Alumina Refinery from 8,00,000 MT to 15,75,000 MT.

918.00 80.00 Bauxite : 4800000MT Alumina: 1575000 MT Alumina:1576500MT(RE:2005-06)

Mines commis-sioned in Dec'99. Alumina Debottlenecking commis-sioned on 1st July,2001 and 3rd Stream on 10th March, 2002)

Bauxite: 4854253 MT AluminaHyd:1590000MT Alumina: 1578000 MT

2. Phase-I Expansion: Smelter & CPP

. Increase in capacity of Smelter Plant from 2,30,000 MT to 3,45,000 MT and of CPP from 720 MW(120 MW X 6) to 840 MW(120 MW X 7).

4027.00 2687.00 Aluminium: 345000 MT Aluminium:349040 MT(RE:2005-06)

120 Pots commissioned in January,2003 and balance 120 pots in August,2004. CPP 7th Unit commissioned on 1st March,

Aluminium: 358594 MT

122

1 2 3 4 5 6 7 8 9 2003.

3.Phase-I Expansion: CPP - VIIIth Unit

Increase in capacity of CPP from 840 MW(120MW X 7) to 960 MW(120 MW X 8)

1181.00 1587.00 Power : for all the 8 units including the 7th units covered under Smelter & CPP expansion. Power :5800 MLn Kwh(sufficient to meet captive requirement) 5571 MU (RE:2005-06)

CPP 8th Unit commissioned on 1st May,2004.

Power : 5679 MU

B.Schemes Aimed at Maximis-ing Benefits

Additions/ Modifications/ Renewals/ Replacements (AMR)

To maintain the production/ productivity in different segments of the Company.

7500.00 6000.00

Rated capacity being maintained at each of the plant units.

C.New Schemes: Phase-II Expansion: 1)Alumina-4th Stream

Increase in capacity - 1.Bauxite Mines: 48,00,000 MT to

29028.00 10642.00 The project activities have since commenced after receipt of GoI approval on 26.10.2004. The requisite consultancy contracts awarded and major MRs/ Technical specifications

Schedule start up date from Zero Date: 26.10.2004 1)Bauxite

123

1 2 3 4 5 6 7 8 9 2)Alumi-nium -4thPotLine 3) IX & X Units of CPP

63,00,000 MT. 2.Alumina Refinery :15,75,000 MT to 21,00,000 MT. 3.Smelter : 3,45,000 MT to 4,60,000 MT. CPP: 960 MW (120 MW X 8) to 1200 MW(120 MW X 10).

drawn. Mines:42 months 2).Al. Refinery : 46 months .3)Smelter : 50 months CPP : 47 months

4. Utkal E Coal

Allotment of a new captive coal mine by Government of India to cater to coal requirement of 9th,

500.00 93.00 Pre Project activities such as DFR, environment clearance, mining lease, forest clearance etc. have been taken up for necessary approval by respective Government agencies before final investment

The completion schedule depends on the final capacity determination and

124

1 2 3 4 5 6 7 8 9 10th,11th & 12 th units of CPP

decision is taken. investment decision.

5. Quatar Project

100.00

*Total: NALCO

45071.00 22009.00 *This amount is arranged by Company through their internal resources.

7. Construc-tion

Building construction of IBM & GSI

600.00 600.00 GSI:Construction of Office Building at Agartala,(ii)Construction of Core Library at Bhubaneswar,(iii)Construction of Boundary Wall at Shillong,(iv)Other misc.projects. IBM:- Construction of residential and official building at Bhubaneswar, Dehradun, Chennai & Nagpur.

Continuation of Schemes from the financial year (2004-05).

125

1 2 3 4 5 6 7 8 9

Total: Construc-tion

. 600.00 600.00

Grand Total:

*22688.00 #45826.00

*17688.00 #22864.00

*This is through Budget Support. #This is through I&EBR.

126

Annexure – III DETAILS OF ACTUAL ACHIEVEMENTS VIS-A-VIS INTENDED OUTCOMES INDICATED IN OUTCOME BUDGET, 2006-07

(Rs. Lakhs)

Outlay 2006-07 S.No.

Name of the Scheme/ Programme

Objectives/ Outcome

BE RE

Quantifiable Deliverables

Processes / Timeliness

Achievements (April-December

2006)

Remarks/Risks

1 2 3 4 5 6 7 8 9 1 Geological

Survey of India

(i)Survey & Mapping

Creation and updating of national geoscientific information and knowledge base through ground, marine and airborne surveys.

3079.00

3126.00

i)Specialised Thematic Mapping(in sqkm)8281 ii)Systematic Geological Mapping(in sqkm)Nil iii)Geochemical Mapping(in sqkm)22122.80 iv)Geophysical Mapping(in sqkm)16276.05 v)Multisensor Survey(in lkm)28000 Marine Survey: Parametric Studies within EEZ &


i)Specialised Thematic Mapping(in sqkm)5132 ii)Systematic Geological Mapping(in sqkm)Nil iii)Geochemical Mapping(in sqkm)10833 iv)Geophysical Mapping(in sqkm)6714 v)Multisensor Survey(in lkm)18071 Marine Survey: Parametric Studies within EEZ &

Reasons for shortfall in achievement of physical targets till Dec.’06 in respect of : (a) Marine Survey by Sanmdra Manthan: Low progress due to the break down of the power module of Bathy 2000 echo sounder as a result, SM 189 cruise was abandoned. Other factors like late in dry docking, repair-maintenance of R.V. Samudra Manthan and non-availability of Multibeam Echosounder, are responsible for shortfall.

127

1 2 3 4 5 6 7 8 9 beyond

(a)Bathymetry(lkm) 10000 b)Magnetic (lkm)22800 vii)Systematic Coverage within TW(sqkm)1365

beyond (a)Bathymetry(lkm) 440 b)Magnetic (lkm)2191 vii)Systematic Coverage within TW(sqkm)840

b) Multi-sensor Surveys: Flying Season starts from October to March and hence targets will be covered in the succeeding period.

(ii)Mineral Exploration

Identifica-tion as well as preliminary assessment of the mineral resources.

1962.00 1976.00 (i) Large Scale Mapping (sqkm)1432.36 (ii)Detailed Mapping (sqkm)24.8835 (iii)Drilling(m) 82636.382


(i) Large Scale Mapping (sqkm)706.45 (ii)Detailed Mapping (sqkm)18.16 (iii)Drilling(m) 52701.96

(c) Specialised Thematic Mapping (STM): Manpower diverted to priority work of Mineral Exploration Programme. required efforts will be made to achieve the envisaged target.

(iii)Specialised Investigation

Geoscientific input to water resource develop-ment, transport

400.00 368.00 (in nos.)73 Continuation of Schemes from the last Financial Year (2005-06) and the

(in nos.)73 commenced

(d) Drilling: The shortfall is due to delay in receiving forest clearances.

128

1 2 3 4 5 6 7 8 9 and miscellaneous civil engineer-ing projects. Geo-environ-mental investiga-tions for both regional and site specific studies. Greater emphasis on natural hazard studies and disaster manage-ment including earth-quake and landslide zonation studies.

quantified outputs will be completed as per schedule.

129

1 2 3 4 5 6 7 8 9 Study of Antarctic Continent

(in sq.km.)(1:15,000 scale)1000

Antarctica expedition launched on 10.1.07.

(iv)Research & Development and Other Exploration

Petrology, Palaeon-tology, Geochro-nology,

659.00

725.00

(in nos.) 63


(in nos.) 63 (Commenced)

130

1 2 3 4 5 6 7 8 9 Photo Geology and Remote Sensing etc. for support to various ongoing projects and to sort out the identified problems.

(v) Infor- mation Dissemi- nation

Computer-ised archival, analyses, retrieval of geoscienti

1775.00

1595.00

(in nos.)47

Continuation of Schemes from the last Financial Year (2005-06) and the quantified

(in nos.) 47 (Commenced)

131

1 2 3 4 5 6 7 8 9 -fic data and creation of theme-based relational database. Dissemination of data through maps, publica-tions, customi-zation etc.

outputs will be completed as per schedule.

(vi)Human Resources Develop ment


300.00 257.00 (No. of Types/No. construction 32(41 courses)


(No. of Types/No.. construction 27(30 courses)

132

1 2 3 4 5 6 7 8 9 (vii)Modernisa-

tion and Replacement


6720.00 3335.00 - Continuation of Schemes from the last Financial Year (2005-06) and the quantified outputs will be completed as per schedule.

-

(viii)Provision from NER

Development of North Eastern Areas

1655.00 1418.00 1.Survey Mapping i)Syst.Geological Mapping(Sq.km.)570 ii)Specialised Thematic Mapping(in sq.km)60 iii)Geochemical Maping(sq.km)3892.80 iv)Geophysical Mapping(sq.km.) 1736 2. Mineral Exploration: (i)Large Scale

1.Survey Mapping i)Syst.Geological Mapping(Sq.km.) 165 ii)Specialised Thematic Mapping(in sq.km)60 iii)Geochemical Maping(sq.km) 1220 iv)Geophysical Mapping(sq.km.) 720 2. Mineral

133

1 2 3 4 5 6 7 8 9 Mapping(sq.km.) 76.52 (ii)Detailed Mapping (sq.km)2 (iii)Drilling(m)1600 3.Specialised Investigation-19 items 4.R&D-3 items 5.Inf.Dissemination – 3 items.

Exploration: (i)Large Scale Mapping(sq.km.) 51.3 (ii)Detailed Mapping (sq.km)0.5 (iii)Drilling(m) 1072.65 3.All continuing 4.R&D- All continuing 5.Inf.Dissemination – All continuing .

Total: (GSI) Plan

16550.00 12800.00

This is for maintaining basic Administrative expenses of GSI.

19771.00

19702.00

134

1 2 3 4 5 6 7 8 9

Total: (GSI) Non-Plan

19771.00

19702.00

2. Mineral Explora tion Corpora tion Ltd. (MECL)

(i)Promotional


1700.00

1400.00

i) Drilling : 24365 mts ii) Dev. Mining: 634 m iii)Associated geological activities (mapping, survey, sampling, analysis, geological report and ore body modelling.

One year One Schemes namely Ghatkuri (E) shall continue next year.

i) Drilling : 13437 mts ii)Dev. Mining: 72 m. iii) The exploration was carried out on 10 schemes. Out of which four were continued from 2005-06, while exploration work on six new schemes namely for copper

Wherever the mineral prospects are located in forest area the exploration would be taken up subject to necessary forest clearance.

135

1 2 3 4 5 6 7 8 9

Dariba-Akola, Devtalai Ph-II & Sanganer, Rajasthan; for gold at Garhi-Dongri, Madhya Pradesh & Bhukia East, Rajasthan and for lead-zinc at Central Sub Block, Rajasthan was taken up. iv) Five Geological Report for Copper, Zinc & Gold deposit were submitted establishing 13.793 million tonnes of reserves. The details are given below:- a) Dhadkidih block, Eastern sector, Jharkhand : 7.43 million tonnes of copper ore reserves with 1.01 % copper at 0.5% cut off has been estimated.

136

1 2 3 4 5 6 7 8 9 Out of this 2.26 million tonnes of reserves with 0.94% Cu Cu has been estimated over 360 m strike length and 100 m depth from surface, which could be potential for open cast mining. b) Nandup East, Jharkhand : 2.47 million tonnes of copper ore reserves with 1.04 % Cu at 0.5% cut off has been estimated. c) Bajata Central block, Ajmer dist, Rajasthan : 0.62 million tonnes of Zinc ore reserves with 1.45 % lead & 3.37% Zinc at 2% TMC cut off(Lead + Zinc) over 400 m

137

1 2 3 4 5 6 7 8 9 strike length and 200m vertical depth between 330 MRL & 130 MRL has been established. d) Dona Temple block, Kurnool Dist. Andhra Pradesh : 1.242 million tonnes of gold ore reserves with 2.60 g/tonne gold at 1 g/t gold cut off up to vertical depth of 300 m from surface has been established. e). Ramachandra pahar block, Jharkhand. Established 2.031 million tones of reserves with average grade of 0.88 % Cu at 0.5% cut off over 800 m strike length and 175 m vertical depth from surface.

138

1 2 3 4 5 6 7 8 9 v) Fund utilization till 31.12.2006 is Rs.1180 lakhs.

(ii)*Capital 800.00 (IEBR)

801.00 (IEBR)

Replacement of old plants & equipment.

During the year

Rs. 299.25 lakhs committed till 31.12.2006.

*This includes Rs.1.00 lakh token provision and Rs.800.00 lakh arranged by Co. through their I&EBR.

Total: MECL

2500.00 2200.00

3. Indian Bureau of Mines(IBM) (i)Inspection of mines for scientific and systematic mining, mineral conservation and mines environment.

To ensure systematic and sustainable development of mineral resources, promotion of conservation of minerals, protection of mine

453.00 494.00 For enforcement of MCDR and approval of Mining Plans/Scheme of Mining, 2500 mines will be inspected and 12 mining geological studies covering the aspects of community development in mining areas will be completed as per the annual programme 2006-07. The out come of this scheme is systematic &

Inspection of 2500 mines and 12 mining geological studies will be completed during the year 2006-07.

During the period 2046 mines were inspected and 12 Mining Geological Studies (MGS) were at various stages of completion.

Fulfillment of the target is subject to the availability of existing strength of inspecting officers, throughout the year. All the activities under various schemes/ programmes of IBM are in accordance with its charter of functions notified

139

1 2 3 4 5 6 7 8 9 environment through statutory enforcement of MM(D&R) Act 1957, MCDR 1988 and relevant portions of MCR 1960 and monitor-ing of community development in mining areas, by carrying out regular inspections/ studies of mines, other than coal, petroleum & natural

scientific development of the mineral deposits, conservation of minerals, protection of environment and sustainable closure of the mines. For this purpose mining plans, scheme of mining & mine closure plans, prepared by the lessees are being approved by IBM and are being monitored for their effective implementation. Through mining geological studies, community development activities carried out by the mining industry in the mining areas will be monitored.

by the Govt dated 6th March 2003 . Activities under this scheme are in the nature of regulatory and service activities and the outcome can not be quantified in terms of money value.

140

1 2 3 4 5 6 7 8 9 gas, atomic minerals & minor minerals

(ii)Mineral Beneficiation Studies – utilization of low grade and sub grade ores and analysis of environmental samples

To ensure value addition to the low grade ores, which are otherwise going as wastes and to help directly or indirectly to the mineral industry for optimum exploi-tation of mineral resources of the country.

524.00 518.00 The activities under this scheme are carried out in IBM's 3 laboratories and pilot plants situated at Nagpur, Ajmer and Bangalore. In these three laboratories 70 Ore Dressing Investigations (ODI), 50,000 Chemical Analysis (CA) and 2,300 Mineralogical Examinations (ME) will be conducted as per the annual programme 2006-07. Besides, clay testing laboratory at Kolkata regional office will be set up. Action for procurement of equipment required for the laboratory will be taken up during

All these activities will be completed during the year 2006-07.

During the period 68 Ore Dressing Investigations, 36,112 Chemical Analysis and 1757 Mineralogical Examinations were carried out. In addition, 15 in-plant studies/ plant visits were carried out. Equipment procured were sent to the clay testing laboratory in Kolkata Regional Office.

Fulfillment of the target is subject to the availability of existing strength of officers & staff, throughout the year. The activities under this scheme are in the nature of promotional, technical consultancy and research oriented. Incidentally some revenue is also generated and therefore the total outcome can not be quantified in terms of money value.

141

1 2 3 4 5 6 7 8 9 Further, analysis of air, water, solid wastes etc. for monitoring of mine effluent parameters are also being carried out.

the year. Most of the mineral deposits found in nature fall short of the grade required by consuming industries and therefore needs upgradation by ore dressing process to suggest ways & means for their economic utilization, as a part of conservation studies.

(iii)Technological upgradation & Modernization

To estimate the National Mineral Reserves & Preparation of Mineral Maps with forest overlays, To ensure development of new

632.00 387.00 During 2006-07, following activities will be carried out: Updation of NMI as on 1-4-2005 will be completed for remaining 33 minerals out of 65 and summary out puts for remaining 50 minerals will be generated. 100 multi-mineral maps along with forest over-lays in respect of TN and

All these activities will be completed during the year 2006-07 The S&T project on “Attenuation of Hexavalent Chromium by bio-remedial technology”

Updation of NMI as on 1.4.2005 : i) Data for 3754 freehold and public sector deposits finalised. ii) Data entry of 10,800 deposits completed. iii) Summary outputs for 36 minerals generated. Preparation of multi-mineral maps :

Completion of multi mineral maps along with forest overlays is subject to the timely availability of forest maps from FSI. The activities under this scheme are in the nature of promotional, technical consultancy and research oriented and on human

142

1 2 3 4 5 6 7 8 9 mining methods for scientific and systematic develop-ment of mineral resources including environ-mental manage-ment of mines. To develop the Human resources and infras-tructure.

part of Karnataka will be prepared. 5-7 Mining/Geological assignments & Environmental assessment studies on regional basis – one study of a mineral belt having cluster of mines & 1-2 rock mechanic studies/ ground vibration studies will be completed. 16 Training courses will be completed. S&T project on “Attenuation of Hexavalent Chromium by bio-remedial technology” will be completed. A new sub-scheme namely, Management of solid waste from mining in India will be implemented subject to the approval of the Govt.. Outcome of this

will also be completed during this year. Proposed new sub-scheme has been dropped as the Ministry has not approved it in principle to take up during 2006-07.

Collection of data completed. Preparation of 30 multi-mineral maps alongwith forest overlays was completed and other 83 maps were at various stages of completion. Technical Consultancy Assignments : 8 mining/ geological assignments completed. Mining Research Assignments: 6 assignments completed. Training : 12 courses conducted. S&T Project on Attenuation of Cr6 : Harvesting

resource development. Incidentally some revenue is also generated and therefore the total outcome can not be quantified in terms of money value.

143

1 2 3 4 5 6 7 8 9 scheme is to benefit the mineral industry through its scientific, techno-economic, research oriented studies and training on various aspects of mining, geology, ore beneficiation and environment, to ensure R&D efforts on sustain-able mine development with protection of environment & pollution control. Further outcome of this scheme is to update National Mineral Reserves & preparation of Mineral Maps with forest overlays for proper exploration & exploitation of mineral deposits..

of 1st & 2nd paddy crops, was completed. Analysis of acid digested soil/ plant samples was completed. 2nd crops destructed. Chemical analysis of plant & soil samples is being done at Utkal University.

(iv)Collection, processing, dissemination of data on mines and minerals

To collect data on mines and minerals through

429.00 131.00 During the year 2006-07 the following publications will be released :-

All these publications will be released during the

Following publications were released: i) 5 issues of

In addition to collection of data from statutory sources, IBM also collects data from

144

1 2 3 4 5 6 7 8 9 through various publications

statutory returns and other means with a view to process, analyze and dissemi-nate the data through various statistical and technical public-cations.

12 issues of Monthly Statistics of Mineral Production, Indian Mineral Industry at a Glance, Statistical Profile of Minerals, 2 issues of Bulletin on Mineral Information, Bulletin on Mining Leases, P.L. & RPs, Directory of Mines & Mining Leases as on 31.3.2006, Indian Minerals Year Book 2005, Directory of Mineral Consumers in India, Comparative Studies of Mining Laws of India and 6 selected countries, Bulletins on Recent Developments in Blasting Technology, Application of Rock Mechanics in surface and underground excavations. Besides, a new sub-scheme viz Computerized Online Register on Mining Tenements System

year 2006-07. Proposed new sub-scheme on computerized online register has been dropped as the Ministry has not approved it in principle to take up during 2006-07.

MSMP ( Jan - May .06) ii) Statistical profile of minerals, 04-05. iii) 2 issues of Bulletin on mineral information (Oct.04-Mar,05 and April-Sept.05 ) iv) Indian Mineral Year Book, 2005 issue v)Indian Mineral Industry at a Glance 2004-05 vi) Bulletin on MLs & PLs, 2004 vii) Bulletin on Mineral Royalties viii) Comparative Study of Mining Laws of India and 5 selected countries

other sources like all State Govts., DGCI &S, Coal Controller, Kolkata, Ministry of Petroleum & Natural Gas, Ministry of Commerce & Industry, Ministry of Steel, New Delhi, DGMS etc. Therefore completion of these publications are subject to timely receipt of data from these sources The activities under this scheme are mainly of service nature. Incidentally some revenue is also generated through sale of publications. Therefore the total outcome can not be quantified

145

1 2 3 4 5 6 7 8 9 will be implemented subject to the approval of the Govt.. The outcome for this scheme is to create database on mines and minerals and to disseminate data through various statistical and technical publications, which are very much useful for planning and taking policy decision by Govt. and mineral industry. The entire mining industry and concerned Govt. departments look to IBM as the agency for providing statistical & other related information on mining and mineral industry in the Country. IBM has also been recognized as one of the sub-system of National Information

Other publications were at various stages of completion.

in terms of money value.

146

1 2 3 4 5 6 7 8 9 system of science and technology (NISSAT).

(v)Provision for NER Capital Outlay

Development of mineral sector in NER

59.00 182.00

59.00 111.00

During the year 2006-07 (i) Mines will be inspected for enforcement of provision of MCDR (ii) Beneficiation tests on law grade ores and minerals available in NE States. (iii) Extend consultancy services to mining industry as and when request received from NER States (iv) Impart training to personnel of mining industry of NE States (v) Supply of

All these activities will be carried out during 2006-07

4 mines/ areas were inspected NIL 1 consultancy assignment on ground vibrations study due to blasting at Kheilijhri Limestone Mine for M/s. Meghalaya Cements Ltd., was taken up and filed work completed. 2 Training programmes on. (i) Windows, MS Office etc. and (ii) Environmental monitoring in mines, were conducted.

These activities are of service nature and therefore the outcome can not be quantified in terms of money value.

147

1 2 3 4 5 6 7 8 9 equipment and instruments to the state government of NE States to strengthen their capabilities for development of minerals in their states.

In a meeting with DGMs of NE States, equipment to be provided to NE States were identified and supply orders issued for equipment worth Rs. 109.28 lakhs. Out of this, so far, equipment worth Rs. 106.29 lakhs were supplied to various NE States.

6.Capital 121.00 For Motor Vehicles, Machinery & Equipment and Works Outlay

Total: (IBM)Plan

- 2400.00 1700.00

Total : (IBM) Non- Plan

For maintain-ing basic admini-strative expenses of IBM.

1613.00 1641.00

148

1 2 3 4 5 6 7 8 9 4. Bharat Gold

Mines Limited (BGML) For meeting expenses on maintenance of essential services.

341.00 806.00 As BGML was closed, therefore, no quantifiable deliverables.

Total: BGML

341.00 806.00

149

1 2 3 4 5 6 7 8 9 5. Hindustan

Copper Limited (HCL) 1.Replacement & Renewal (Rs,28.50 cr.as BS from GOI and the balance Rs.29.71cr.to be funded out of internal resource generation)

For achieving maximum utilization of the existing plant and mines-machinery by replacement and renewals.

3000.00

2850.00

The following are the major equipment which have been purchased:- 1. Low profile Dump Trucks 2.Type Mounted Rough Terrain Mobile Crane 3.Rock Shovel Loaders with spares 4.Dragger self contained oxygen breathing apparatus. 5.Welding Transformer 6.Dual Busbar-Siemens. 7.Spares for Blower Turbine 8.Electric Hoist 9.GMMCO

Replacement & Renewals is a continuous process to achieve the BE production targets vis-à-vis are as under: Targets for 2006-07: MIC-29500 T Cathode –42000 T Targets upto Dec/.2006: MIC-20905 T Cathode-30830 T Actuals upto Dec.,2006: MIC- 21328 T Cathode-27415 T

150

1 2 3 4 5 6 7 8 9 Transmission Assembly 10.Rotating Element & Journal Bearing –SAP II 11.Strengthening of Tailing Dam 12.AC Sheet,Centrifugal Pump, Rock Breaker, Speed Drive Motor, etc. 13.Tailing Dam Work 14.RECON Transmission 15. Drill Machine 16.Crawler Dozer 17.Front End Loaders, Buckets & Spare parts, etc.

151

1 2 3 4 5 6 7 8 9 Total: HCL

Plan

3000.00 2850.00

2.For payment of debentures, HCL has been provided a Non-plan.

2500.00 2500.00 Not quantifiable.

It is a loan of Govt. to PSU so it a facilitative support.

Total: HCL Non-Plan

2500.00 2500.00

7. Other Programmes: S&T

Research & Develop ment work on mining & non-ferrous

*805.00

*604.00

R&D Projects catering to the national requirements s and for building the capabilities and strengths of the mineral & non-

*In BE this includes Rs.4.50 crore through budget support and Rs.3.55 crore through I&EBR. *In RE this includes Rs.2.49 crore through budget support and

152

1 2 3 4 5 6 7 8 9 metals. ferrous metals.

Rs.3.55 crore through I&EBR.

Total: (S&T) Plan

805.00 604.00

For meeting the salary of three autonomous bodies(JNARDDC,NIRM & NIMH) contribution to international bodies and for National Mineral Awards

291.00 317.00

Total :(S&T) Non-Plan

291.00 317.00

153

1 2 3 4 5 6 7 8 9 8. National

Aluminium Company Ltd. (NALCO)

A.Schemes aimed at Maximizing Benefits: Additional/Modifications/ Renewals/Replacment(AMRs)

To maintain the production/productivity in different segments of the Company

9500.00

9545.00

Rated capacity is to be maintained at each of the following major plant Units Bauxite : 4800000 MT, Alumina : 1575000 MT Aluminium 345000 MT Power: 6391 MW

Rated capacity is to be maintained as each of the following major plant Units bauxite 3199881 MT. Alumina 1046300 MT Aluminium 272696 MT Power 4431 MW.

B.New Schemes: Phase-II Expansion 1. Alumina - 4th Stream, 2. Aluminium - 4th Pot Line, 3. IX and X units of of CPP.

Increase in Capacity : Bauxite Mines 4800000 to 6300000 MT, Alumina Refinery : 1575000 to

52097.00

52447.00

The project is under implementation and is scheduled beyond 2006-07. The Outcome during the year 2006-07 is Nil. After completion of the project with approved outlay of Rs.4091 crore, the expanded output per year i.e.Bauxite of 63 lakh TPY, alumina of

Schedule start up date from zero date (26.10.2004) Bauxite Mines : 42 Months, Alumina Refinery: 46 Months, Smelter : 50 Months,

154

1 2 3 4 5 6 7 8 9 2100000 MT Smelter : 345000 to 460000 MT, CPP : 960 MW (120 MW x 8) to 1200 MW (120MW x 10)

21 lakh TPY, Power of 240MW and Aluminium of 4.60 lakh is expected to be achieved in 2008-09.

CPP : 47 months.

4.Utkal E-Coal

Allotment of a new captive coal mine by GOI to cater to coal requirement of 9th, 10th, 11th and 12th Units of CPP

517.00 517.00 The project is under implementation and is scheduled beyond 2006-07

The completion schedule depends on the final capacity determination and investment decision.

155

1 2 3 4 5 6 7 8 9 5. Quatar project

Adhoc sum of Rs.1.00 Crore has been kept. However, since Quarter did not show much interest, the project is going to be closed.

100.00

-

The nomenclature and content of the scheme is being changed for feasibility study of "Green Field Smelter".

Total: NALCO *62214.00 62509.00 *This is funded through internal & extra budgetary resources.

9. Construction

Building construction in the Geological Survey of India and Indian Bureau of Mines

900.00

533.00

GSI – (i)Construction of Office –cum-Lab Building at Shillong(ii)Const.of staff quarters at Lucknow(iii)Other misc.projects.. IBM:_ Constructions of office building at

Continuing schemes.

156

1 2 3 4 5 6 7 8 9 Guwahati, Bhubaneswar, Dehradun .

Total: (Construction) Plan

900.00

533.00

9 Secretariat Proper: This provision is for Secretariat expenditure of the Ministry.

886.000

901.00

Not quantifiable. This is for regulation of Mines and Development of Minerals under the control of Union.

Total: (Sectt.Proper) Non-Plan

886.000

901.00

157

1 2 3 4 5 6 7 8 9 10.

MECL Waiver of interest/ penel interests

- 5884.00 The amount is netted against the receipt.

As part of approved capital restructuring.

Total:(MECL) Non-Plan

- 5884.00

Grand Total: Plan(GBS)

25000.00 19900.00

Grand Total: Non-Plan(GBS)

25402.00 31751.00

Grand Total: (I&RBR)

63369.00 63664.00

158

Appendix I

PROJECTED OUTCOME OF GSI : 2007-08

(a) Survey & Mapping Basic earth-science data generation through systematic ground, aerial and marine survey, as a fundamental pre-requisite for the proper geo-scientific management for the earth system.

(b) Mineral Exploration Generation of earth science data for (i) assessing resources of different mineral commodities and (ii) finding new mineral resources of the country.

(c) Specialised Investigation Generation of pertinent data for use in (i) major national constructions projects (ii) major national power generation projects (ii) providing environmental safeguards to the society. Increasing understanding of different issues of mining, urban development and natural hazards such as earthquake, landslide, avalanche, erosion and cyclone.

(d) Research & Development & other Exploration

(i) Furthering research of fundamental nature for identification of new application tools and (ii) adding knowledge base for Antarctica

(e) Information Dissemination

(i) Dissemination of relevant part of earth science data for public use through GSIPORTAL and (ii) Development of inter connectivity between different offices of GSI for speedy implementation of programmes.

(f) Human Resources Development

Creation of a system for providing trained manpower as per changing operational needs of GSI.

(g) Modernisation & Replacement

Improvement of capabilities in the field and laboratories for generating various types of earth science data and their processing for proper interpretation

159

160

161

162

163

Documents

MINISTRY OF MINES · Conservation and their planned exploitation is therefore, of prime importance to the national economy. ... (NALCO, Bhubaneswar. (ii) Hindustan Copper Limited(HCL),