COAL INDIA LIMITED

THE BIGGEST ENERGY PROVIDER IN

INDIA

N C JHADirector (T), CIL

Coking

6.8%

Non Coking

93.2%

Coal Industry in India

Total resources : 267 BT

Proved : 106 BT

Indicated/inferred: 161 BT

88% of production from opencastmines; 12% from undergroundmines

Coal present in 14 out of 28 states

Indian coal contain generally highash, (4500 GCV) & low sulphur

No longer a regulated industry

Coal Production and ImportsTypes of Coal Produced in India

Coal Reserves in India

India

China

Pakistan

Myanmar

Nepal Bhutan

Sri Lanka

Coalfields

India

China

Pakistan

Myanmar

Nepal Bhutan

Sri Lanka

Coalfields

323.5 343.4 360.9 379.5 403.7

59.163.6

69.977.6

89.3

29.038.6

43.149.8

59.0

411.6445.6

473.9506.9

552.0

200

300

400

500

600

2004-05 2005-06 2006-07 2007-08 2008-09

Co

al

Pro

du

cti

on

/ I

mp

ort

s (

MT

)

CIL Others Imports

2

1774 Start of Coal Mining in India

1900 Coal Production 6.12 mts.

1920 Coal Production 18 mts.

1942 Coal Production 29 mts.

1946 Coal Production 30 mts.

1947 Advent of Independence

.

1956 Setting up of NCDC a Govt. UT

1956 Takeover of SCCL mines by Govt.

1972 Nationalisation of coking

coal mines

1973 Nationalisation of

non-Coking coal mines

493 mts

The Growth of Indian Coal Industry

6.12mts

.80.93mts

Systematic Mining

2008-09

Company Overview

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83

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Vast Scale and Operations

Largest coal company in the world

• Produced over 403 MT in FYE Mar2009

• 82% market share in India

• Over 400,000 employees

Reserve base ~ 70bn tonnes

Meets 45% of India’s primarycommercial energy requirement

Net Revenues of over US$8 bn

Estimated PBT before pay revision~US$2.3bn, PBT as reported~US$1.2bn for FYE March 2009

100% owned by the Government ofIndia (GoI)

Awarded Mini-Ratna in Mar ’ 2007,Nav-Ratna in Oct ’ 2008 & SCOPEExcellence Award in 2009

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Eastern Coalfields Ltd

Bharat Coking Coal Ltd

Central Coalfields Ltd

Northern Coalfields Ltd

Western Coalfields Ltd

South Eastern Coalfields Ltd

Mahanadi Coalfields Ltd

Central Mine Planning & Design

Institute

North Eastern Coalfields

(A Unit Under CIL HQ)

CIL Subsidiaries

Exchange rate of 48.39 INR/USD5

Presence Through the Value Chain

EXPLORATION

COAL MINING

BENEFICIATION

473 mines owned: 279 UG ,163 OC , 31 Mixed Production in 2008-09 was 359MT from OC and 44MT from UG SCCL and TISCO are the other main players in coal mining ~200 blocks allotted to private operators for captive mining

Operates 17 washeries - 12 coking (22.18 MTY) and 5 non–coking (17.22MTY)

Decision taken to supply beneficiated coal to all non Pit Head consumers 20 new washeries (18 under BOM-105.10 MTY, 2 under Turn Key-6 MTY)

being taken up for construction as Public-Private-Partnership.

Carried out in two stages: Regional and Detailed In 2008-09, 0.27 Mm of drilling has been achieved Action initiated to enhance drilling capacity to 1Mm annually

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Strong Track Record of Growth

78.99

204.16

250.62279.65

379.46403.73

360.91

0

50

100

150

200

250

300

350

400

74-75 91-92 96-97 '01-02 '06-07 '07-08 '08-09

RAW COAL PRODUCTIONM

illi

on

To

nn

es

UNDERGROUND PRODUCTION

Mil

lio

n T

on

ne

s58.22

56.63

55.19

49.22

43.32 43.54 43.96

40

50

60

74-75 91-92 96-97 '01-02 '06-07 '07-08 '08-09

Mil

lio

n T

on

ne

s

MANPOWER

598649

627463

519922

439343426077

671550

412350

400000

450000

500000

550000

600000

650000

700000

1.4.75 1.4.92 1.4.97 1.4.02 1.4.06 1.4.07 1.4.09

PRODUCTIVITY

0.58

1.40

1.86

2.45

3.543.79

4.09

0

1

2

3

4

74-75 91-92 96-97 '01-02 '06-07 '07-08 '08-09

To

nn

es

PROJECTION & PLANNING

COMPANY

ACTUAL PROGRAMME

IX PLAN

(01-02)

X PLAN

(06-07)

XI PLAN

(11-12)

XII PLAN

(16-17)

CIL

(CAGR)

279.65

(2.22)

360.91

(5.23)

520.50

(7.60)

664.00

(5.00)

S.C.C.LTD 30.81 37.71 40.80 45.00

OTHERS 17.33 32.21 119.70 346.00

TOTAL

(CAGR)

327.79

(2.53)

430.83

(5.62)

680.00

(9.57)

1055.00

(9.18)

CIL’s GROWTH IN

PRODUCTION

X OVER IX PLAN XI OVER X PLAN

81 Mt (29%) 160 Mt (44%) (HIGHEST SO FAR)

COAL PRODUCTION TREND/ PROGRAMME (WG)

Mill T

Sustainable Strategic Initiatives

Enhancing Availability of Resources

EXPLORATION

Drilling targets increased 4x - Aiming to convert ‘inferred’ and‘indicated’ category to ‘proved’ category

Detailed drilling and projectisation of coal blocks allocated to captive blockowners.

Systematic exploration to arrive at reliable estimate of coal reserves Application of IT to create geo database

NEW PROJECTS

FOREIGN ACQUISITIONS

Acquiring coal resources abroad through equity stake in working or greenfield projects - Acquired 2 virgin coal blocks in Mozambique

Global EOI floated for selection of strategic partners for overseasoperations

134 new projects for ultimate capacity of 309 MTy identified - 34 UG, 100OC

Setting up 20 washeries with a capacity of 111.1 MTy

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Ensuring Accessibility of Resources

OC MINING

UG MINING

Computer-aided mine planning for deeper OC mines Deploying high capacity equipment to achieve economy OITDS for efficient fleet management

State-of-the-Art Mass Production Technology

Tapping large reserves below 300m depth 7 UG Greenfield properties being developed 18 abandoned mines (1600 MT) identified for development

HIGHWALL MINING

Mining of good quality thin seams Recovery of good quality coal in OC mines beyond economic stripping ratio.

CBM/UCG

Recovery and commercial utilization of CBM from deep seated seams Underground coal gasification of deep seated seams

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ENVIRONMENTAL POLICY OF COAL INDIA

COAL INDIA CARES FOR ENVIRONMENT TAKING SUITABLE MEASURES

IN ALL ASPECTS OF THE ENVIRONMENT AS FOLLOWS:

Air Pollution Control

Water Management & Water Pollution Control

Noise Control

Control of Vibration, Noise & Fly Rock generation due to blasting

Mine Reclamation & Rehabilitation

Green Belt Development

Land Use Planning

Socio-economic Environment & Rehabilitation of mined out areas for Post

Mining Land Use

WITH DUE EMPHASIS ON SUSTAINABLE DEVELOPMENT

• Extensive tree plantation programme is undertaken every year by the subsidiaries of Coal India.

Avenue plantation, plantation on the OB dumps, plantationaround mines, residential colonies, available land isundertaken in existing as well as new projects.

Coal India planted over 70 millions of plants since 1993-94covering an estimated land area of around 28300 hectares.

Coal India is committed to continue plantation which is apart of annual activities in each subsidiary.

Reclamation & Plantation

• All 171 OC projects have been identified.

49 projects excavating more than 5 Mm3 (Coal+OB) perannum will be monitored once a year.

122 projects excavating less than 5 Mm3 (Coal+OB) per annumwill be monitored once in 3 years.

Out od 49, Surveillance for 35 projects excavating more than 5Mm3 per annum has been completed under first 100 DaysProgramme of Ministry of Coal, Government of India.

Remaining 14 projects are also being covered this year.

CIL in Satellite Surveillance:

• Study reveals that in all OC projects, plantation area, green coverage and backfilled area have increased.

In Singrauli Coalfield, NCL, area of plantation has increased from57.25 sq. km (2000) to 69.30 sq. km (2005)

In Wardha Valley Coalfield, WCL, area of plantation has increasedfrom 11.48 sq. km (2005) to 14.05 sq. km (2008)

In Korba Coalfield, SECL, in Gevra & Dipka OCPs combined,plantation area increased from 2.99 sq. km (2003) to 7.75 sq. km(2008)

In North Karanpura Coalfield, CCL, in Ashoka & Piparwar OCPscombined, plantation has increased from 5.06 sq. km (2006) to5.64 sq. km (2008)

Salient Findings

YEAR 2007 YEAR 2008

LAND USE/ COVER MAP OF NIGAHI OCP BASED ON SATELLITE DATA OF 2008

31 Projects have been accredited for ISO: 14001 certification. Company wise break up:

CCL : 3

MCL : 5

NCL : 8

SECL : 3

WCL : 12

Mining Projects : 29

Central Workshop : 1

Coal Preparation plants : 1

ISO: 14001 certification:

Performance of CIL is continuously improving quantitatively and qualitatively.

CIL had been conferred the Navratna status in October 2008.

CIL conferred with 'CEO with HR Orientation' award by Council of World HRD

Congress during Global HR Excellence Awards Ceremony 2010.

CIL won the ‘SCOPE Gold Trophy 2007-08 (Institutional category)’ for Excellence

and Outstanding Contribution to Public Sector Management.

CIL adopted several cost effective measures like manpower restructuring,

extensive use of computers, introduction of ERP-SAP, advance training to

employees to increase the learning ratio, increasing the adaptability with high

tech environment etc.

CIL is committed to follow the International Financial Reporting

Standards (IFRS).

CIL is looking for foreign collaboration to bring in proven technologies and

advance management skill.

Coal India is going for IPO:

IPO proposed in August 2010.

Public offering in Book Building: 10%

Employees Reservation: 1-2% (Provisional)

Future Land Losers: 2% (Provisional)

In deregulated environment, market is the best judge for

performance and market discounts all past and future

events, CIL is confident to get a high value quote in the

secondary market.

Initial Public Offer

As a part of liberalization process, CIL is going for proposed

disinvestments through Initial Public Offer (IPO).

As per NCDP, Coal India is required to meet the requirement of coal of

the country, if required, even by import.

Demand from works out to 721 Mte in 2011-12 against projected

production of 487 Mte leaving a gap of 235 Mte. This gap is to further

increase at 305 Mte in 2012-13.

Coal India has taken initiatives for Strategic Alliance with overseas

producers for augmenting availability of coal.

Coal India has also been taking initiatives for acquiring overseas

properties.

Coal India has been mandated by the Planning Commission to import 8

Mte of coal for utility sector, out of total import target of 35 Mt in the

next fiscal.

CIL’s venture for coal import

CIL will be required to bring 65% of the import in East Coast Port and

the remaining 35% in Western Coast.

Major initiatives have also been taken for upgrading infrastructures at

major Government ports at Vizag in east and Kandla in west coasts.

CIL is contemplating to be associated with this infrastructure building

exercise.

Dedicated Freight Corridor (DFC) of Indian Railway system, likely to be

operative from the middle of 12th Plan would also enhance hinterland

logistics capability.

CIL is contemplating following process for importing coal: