MAHANADI COALFIELDS LIMITED · Sustainability Report|2016-17 3 We at Mahanadi Coalfields Limited...

Sustainability Report|2016-17

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SocialEmpowerment

EnvironmentalResponsibilities

EconomicStability

BACKTOROOTS

MAHANADICOALFIELDSLIMITEDCSR&SUSTAINABILITYREPORT|2016-17


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Vision

Mission

To be one of the leading energysuppliers in the world, throughbest practices from mine tomarket.

To produce & market the plannedquantity of coal and coal productsefficiently and economically in aneco-friendlymannerwithdueregardtoSafety,ConservationandQuality.

CONTENTS

3|OURENVELOPE 4|FROMCMD’sDESK 6|MESSAGEFROMDIRECTORS&CVO11|FROMGM’sDESK

12|CORPORATENETWORK13|MCL’sBLACKDIAMONDLEGACY14|OUROPERATIONS15|MCL’sOTHERBUSINESS16|GOVERNANCEPHILOSPHYANDSTRUCTURE18|VIGILANCE-STRIVINGFORZEROCORRUPTION21|INDUSTRYASSOCIATES22|AWARDSANDACCOLADES

23|SUSTAINABLEBUSINESS-PUTTINGINTOPRACTICE24|SUSTAINABLEPERFORMANCEASSESSMENT:2016-1726|SUSTAINABLEMANAGEMENT26|RISKMANAGEMENT28|STAKEHOLDERENGAGEMENT31|MATERIALITYANALYSIS

32|ACCOMPLISHMENT’S2016-1736|CONTRACTMANAGEMENT:ANASSETTOBUSINESSRELATIONSHIPS

37|REGULATORYCOMPLIANCES37|COALEVCAUATION

39|CLEANPRODUCTIONSTRATEGIES39|ENERGYEFFICIENCY

42|WATERMANAGEMENT45|AIRQUALITYMANAGEMENT

47|NOISEANDGROUNDVIBRATIONCONTROLMEASURES47|COALQUALITY-CLEANENERGY

51|LANDRECLAMATION-RIGHTINGTHEPASTWRONGS55|MINECLOSUREACTIVITIES

COMPANYPROFILE

ECONOMICSTABILITY

ENVIRONMENTALRESPONSIBLITIES

BACKTOROOTS-THROUGHSUSTAINABILITY

AviewatBelpaharOCP

57|TALENTRETENTION-HUMANINTELLECTUALCAPITAL

58|EMPLOYEEBENEFITS58|EQUALOPPURTNITIES

60|TRAININGANDPERFORMANCEMANAGEMENT62|EMPLOYEEHEALTHANDSAFETYNET

64|SAFETYSTATISTICS65|EMPLOYEEWELFAREANDWELLNESS

66|RESOLVINGEMPLOYEESANDSTAKEHOLDERISSUES66|PARTICIPATORYMANAGEMENT

66|INFRASTRUCTUREMAINTENANCE67|CSR-COMMITMENTFORBETERFUTURE

71|MAHILAMANDAL-REALARCHITCTSFORCHANGESINTHESOCIETY74|LANDACQUISITION

74|REHABILITATIONANDRESETTLEMENT

78|ANNEXURES-KEYPERFORMANCEINDICATORS87|MAPPINGWITHUNGCPRICNIPLES88|GRICONTENTINDEX94|GLOSSARY

99|FEEDBACKFORM:MCL’sSDREPORT2016-17

SOCIALSTABILITYBlissfulmorningsatGolfcourse

MCLHQ


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WeatMahanadiCoalfieldsLimitedcapturethespirtofsustainabilityinour6thAnnualsustainability report (2016-17), to meet our goals - environmental protection, economicstabilityandsocialwellbeing.Byrecognizingourimpactswithouroperations,wemakeEco-consciouseffortstomitigatethem.Wemoveforwardwithoursustainableeffortstomeetourneedsofthepresentwithoutcompromisingtheabilityoffuturegenerationstomeettheirownneeds.

Ourreportconfinesthesustainability-relatedinformationfortheFY-2016-17ofour29units.Tocommunicateaboutoursustainabilitytransparently,wefollowtheguidelinesoftheGRItodiverserangeofStakeholders,localcommunities,Government,non-governmentalorganizations,investorsandothers.ThisFYwefollowedfourthgenerationguidelinesofGRI,“inaccordance”withcorecriteria,includingthetechnicalprotocolsoftheMiningandMetalsSectorsupplement.

ContactDetails:Fordetailspleasevisit:http://www.mahanadicoal.inForqueriesEmailusatsustainability.mcl@gmail.com

OurEnvelope|2016-17

Sustainabilitybeginsathome.

IbValleycoalfield(10Miningareas)AtSundargarhDistrict:Basundhara(W)OCPandKuldaOCPAtJharsugudaDistrict:SamleswariOCP,LajkuraOCP,LakhanpurOCP,BelpaharOCP,LilariOCP,OrientU/Gmineno1&2,OrientU/Gmineno.3,HBIU/Gmine.Talchercoalfield(11Miningareas)AtAngulDistrict:JagannathOCP,BhubaneswariOCP,BharatpurOCP,AnantaOCP,ChendipadaOCP,LingarajOCP,KanihaOCP,HingulaOCP,BalaramOCP,TalcherU/Gmine,NandiraU/Gmine.

Centralstores:(2locations)AtTalcherandIBvalleycoalfields

Excavationworkshops:(2locations)CentralWorkshop,TalcherCentralworkshop-IBValley

CentralHospital(2locations)NehruSatabdiCentralHospital(NSCH),TalcherCentralHospital,IBvalley

Head

Qua

rter

AtBurla,Sam

balpur.

AtBhu

bane

swar.


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FromChairman’sDesk:

DearStakeholders,

IampleasedtointroducethesixthannualMCL’sSustainabilityReportforFY2016-17preparedinaccordancewiththelatestG4guidelinesofGlobalReportingInitiative.AgainstthebackdropofastillstrugglingglobaleconomyandIndia’senergydependencyonfossilfuel,wecontinuetooperateineconomically,environmentallyandsociallyresponsibleways;andinvestforthefuture.

Aproductionof139.21MTofcoal,withagrowthof0.95%againstlastyearhasbeenachievedwithanincomeof25778.29CrINRintheFY2016-17.Ourperspectiveplanforyear2020 is to reach the 170MT target by investing towards building land acquisition targets,forestclearanceandR&Rissues.Comparedtolastreportingyearthereisagrowthpathintheproduction,off-takeandoverburdenremoval.Wearetryingtodiversifyinthefieldofpitheadthermalpowergeneration,solarpoweretc.

WemouldourbusinessstrategytowardsbotheconomicperformanceandCSRlikeanunbiasedcoin.OurCSRprojectslikehealthcare,drinkingwatersupply,electricity,sustainablelivelihood, infrastructure development, natural resource conservation, sports havestrengthened the trust with local communities and helping secure enduring stakeholdercooperationinMCL’senergybusiness.OurCSRinvestmenthavereachedINR166.6croreinthis reportingperiod.Wehelp localcommunities’nskilldevelopmentandeducationas itdevelopsaperspectiveoflookingatlife.

We ensure all our employees, contractors and local communities close to ouroperations are healthy and safe.We are increasingly extending focus on identifying andaddressingtherootcausesofseriousaccidents.Wecreateahealthyenvironmentamongallthe employees and encourage them coming up with new technical and managementinitiatives forupgradation inourworking systems.Apreventive vigilance systemhas alsobeen put into place so as to strengthen the safety machinery and make these changessustainableinthelongrun.Ouremployeesaregivenrightinfrastructurefortheirhappylivingeven at remote places. MCL, is associated with clean Indian initiative “Swachh BharatAbhiyan- Swachh Vidhyalaya Abhiyaan”. Mahila Mandals at HQ and area level work forwelfareandupliftmentofthepoorerclassofthesocietyspeciallywomen,oldagepeople,handicappedpeopleandchildrenintheruralareasofthestateofOdisha.

Westrivetoconservethenaturalresourcesforfuturegenerationsbyrestoringthede-coaledland“BacktoRoots”througheffectivewaterandOBmanagement,biodiversity,eco-restoration, afforestation drives and eco-friendlymine closure. During coal life cycle,many challenges are being faced by the environment like energy efficiency and climatechange,dustsuppression,groundwaterissues,Elevatedtemperaturesandlandreclamation.We actively address all these issues likewe recycled approximately 37.93%of totalminewaterandwedrewonly24,630millionlitersoffreshwaterfromthevarioussurfacewatercourses.OurusageofFuelandlubricantconsumptionforcoalproductionalsoreducedby4.78%and17.59%respectivelywithrespecttopreviousreportingyear.


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Sd/- (A.K.Jha)

(Chairman-cum-ManagingDirector)

We developed separate coalcorridors in our surroundings and watersprinklers at railway sidings and coaltransport roads to reduce the dustgeneration. We changed our miningmethods to eco-friendly surface miner,which resulted in reducing our carbonfootprint by 1,30,000 Te of CO2.We havealso planted 52.19 lakhs of saplings sinceinceptionand1.38Lakhsamplingsthisyear.

Iwouldliketoappreciatetheeffortsofcoalminersandourstakeholderswhoarethe backbone of our contributions in theenergy sector.Our sustainability focuswillbe continued with transparency,consultation and engagement of stakeholders.

Iinviteyourcommentsonthereport.

EcofriendlymineclosureactivityatBasundhra(E)OCP


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MessagefromDirector(Tech./Operations):

It’sagreatpleasuretopresenttoyouthereportwhichrecognises26yearsofCoreValueCatalyst-SustainabilityatMCLfor local economic development through transparent andrespectfulstakeholderengagementandasresponsiblestewardsof theenvironment. It isdeeply ingrainedprinciplethatguidesour actions and supports our purpose to create values andimprovelivesthroughsustainableandresponsiblemining.

I would like to deliver some of the measurable andsustainable results during this financial period. The capacityutilisationofopencastprojectsduringFY2016-17was270.202

M cum, with an enhancement of 12% against last year. In Supply Chain Management,transformationofinputstooutputsisveryessentialforsuccessofacompanyinfuture.DuringFY2016-17total96no’softenderswerefinalisedand111no’sofsupplyorderswereplaced.OurInventoryRegionalstoreshavebeenreducedby6.3%againstlastyear.Webelievethatreducingconsumptionofconventionalpoweristhecleanestwaytoconsumeenergy.Inthisaspect,wetookdifferentinitiativeslikereplacingfluorescenttubeswithLEDtubesandbycommissioningofSolarPhotovoltaicPowerplant(2MWs)waybackin2014,whichpavedwaytoreduce56,56,270kgofCO2tilldate.Wearetotallyconsistentwiththeproductqualityforreachingthecustomersatisfaction.WehavefivecoallaboratoriesinareaswiththegrantofNABLaccreditation certificateandwell equippedviz.,AutoProximateAnalysersandAutoBombCalorimeterswhichenablesustodeterminethegradeofcoalwithintwohours.Ourcoalanalysisresultsareavailableondailybasisonour“QualityPortal”w.e.f.March2017.Ourdespatchthroughrailmodehasbeenincreasedby1.86%againstlastyear.

WeareoneoftheCIL’ssubsidiary,registeredforanIntegratedManagementSystemconforming to Quality Management (ISO 9001:2008), Environmental Management (ISO14001:2004)andOccupationalHealth&SafetyManagement(OHSAS18001:2007),toensureourminingactivitiestowithholdthelegalparametersbycompilingwithenvironmentalnormsandstandardsforlongtermsuccess.Wearealsointheprocessofapplyingforaccreditationfor ISO 50001:2011 for an Energy Management System to manage the rationalizedconsumptionofallenergyinputsinourorganizationandforSA8000SAMformanagingsocialaccountabilityconcernsoftheorganization.

Furthertoabove,MCLhasachievedMilestoneActivityforcrashingofcriticalpathActivityoftopMOSPIMonitoredOngoingProjectscostingRs.150Crsandaboveduringthis financialyear forAnantaOCPExpn.Ph-III (NOCunderFRAforstage-IFCclearancefromMoEF&CC),Hingula–IIOCPExpnPh-II(AwardofworkforConstructionofSILOandstartingofconstructionwork,JagannathRe-organisation(preparationofMiningplanfor7.5MTY).

Finally,IwouldIliketoquote“Therearenosecretstosuccess.Itistheresultofpreparation,hard-workingandlearningfromfailure”-ColinPowell.

Sd/-J.P.Singh(Director(T/Operation)


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MessagefromDirector(Personnel):

ItgivesmegreatpridetoputmythoughtstogetherontheSustainabilityReportofMCLfortheyear2016-17.Weare intotheexcavationbusiness.Criticsoftenusethephrase“Sustainableminingisanoxymoron”.Theircontentionisbasedonthepremisethat ore bodies are finite&non-renewable and even thebestmanagedmineswillhavesomeenvironmentalandsocialcosts.However,theinescapabletruthis,moderneconomyevenwithbest intention cannot do withoutminerals.We, atMCL, havetakenthesustainabilityconcerninourstride.

Onsocialfront,webelievethattobeasociallysustainablebusinesscorporate,people’srightsmustberecognized,miningbenefitsequitablysharedandpeoplemustbemadepartofdecisionmaking.Forprojectaffectedpeople,wehavethebestofcompensationandR&Rpackages.Wesettledatotalof559PAFsupto31.03.2017andthesefamilies either choose relocation to R&R sites, or to sites of their own choice. For ouremployees,wefocusoncreatingunsurpassedamenities,welfareprogramsandconducivework atmosphere.We are steering up for the new training institute ofMCL- Institute ofNaturalResources&EnergyManagementatBhubaneswar.Wealsohaveestablishedtrainingcenters at corporate office and at different areas. During this FY, 8183 employees bothexecutiveandnon-executivesweretrainedatdifferentrenownedorganisationsinIndiaandAbroad. We encourage all the employees as competent managers by reviewing theirperformance regularly. Three HR initiatives taken up for talent development amongemployeesatMCLareMentor-MenteeScheme,MiningSirdarTrainingandImpartingtrainingunderApprentices,Act,1961.Forthesocietyandpublicatlarge,weundertakeCSRinitiatives.MCListhetopCSRspenderin2016-17inthestateofOdisha.ThecompanyhasspentRs.166croreagainstthe2%-law-budgetofRs.113crore.Twoofthenoteworthy,high-investmentandhigh-impactprojectsare-MedicalCollege-cum-Hospitalnamedas‘MahanadiInstituteofMedicalScienceandResearch(MIMSR)’atTalcherandConstructionoftoiletsinruralschoolsofOdisha.WorkonMIMSRhasstartedinApril2016andisexpectedtobecompletedbySeptember2018.AtRs.492crore, it is the largest investmentonasingleCSRprojectbyanycorporatehouse.Apart from these,wehave taken-up ahost of social sector and communitydevelopmentprojects like rural road connectivity, drinkingwater supply, pipedwater supply schemes,schools,communitycenters,ruralelectrificationandlivelihoodprojects.Duringtheyear,MCLhasgivenRs.847crorestowardsDMFfund(DistrictMineralFoundation)createdexclusivelyforthebenefitofminingaffectedpeople.Thecentralthemeistomakethepeople‘partnerin’andnot‘victimsof’mining. ItakethisopportunitytowishMCLcontinueits legacyandmoveonawholesomelysustainablegrowthtrajectory.

Sd/-L.N.MishraDirector(Personnel)


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MessagefromDirectorTechnical(Planningandprojects):

Itisamatterofgreatpleasuretopresentyoutheannualsustainability report for the FY 2016-17. MCL’s endeavour hasalways been to plan in such a way that it meets the humandevelopmentgoalsandatthesametimesustainingtheabilityofnatural systemswithoutcompromising theabilityofourcominggenerations.There is a great saying, “If you are not planning tosucceed,youareplanningtofail”. Therefore,it is imperativeonour part to ensure proper planning and itsimplementation/executionoftheprojectsundertakenbyus.

During this reporting year,we took up several brick andconcreteworks likeconstructionofcoalcorridorroad(19.878)KmatTalchercoalfieldstoimprovetheenvironmentalconditionsandtheconstructionof2-lanededicatedcoalcorridorroad(33Km)fromBankibahaltoBhedabahal inSundergarhdistricthasbeenapprovedbyMCLboard.Forwelfareoftheemployees,theclubsinboththecoloniesatcorporateofficearerenovatedandconstructed.TheextensionandrenovationofBelpahartraininginstituteatLakhanpurAreahasalsobeencompleted. On environment front, our priority is to abide by environmental laws, implementstandards in true spirit, respect the eco-system, augment resource efficiency, adoptenvironmentfriendlytechnology,andsupport investments ingreeninitiatives. In2016-17,MCLhascontributedRs.5720crorestowardscleanenergycess.Duringthisreportingyear1,38,540nosofsaplingshavebeenplanted.Theareaunderlandreclamationhasincreasedfrom 32.70 Km2 to 33.85 Km2 against the previous year. We follow sustainable watermanagementbyrecyclingtheminewaterbyreducingthewithdrawalfromsurfacecourses.Inthisreportingyear,werecycledapproximately37.93%oftotalminewater.WehavebeenappreciatedbyCILwith corporateawardon theoccasionofCIL foundationday for “BestEnvironment Management-2016-17”. With the implementation of a new system of e-procurementwithreverseauctionsduringthisfinancialyearhasresultedindrasticreductionincomplaints,betteronlinemanagementofEMDandmoreeffectivepenalprovisions fordefaultingbidders.Coalbeneficiationplaysveryimportantroleinthemininglifecycle.Wesupplycoaltoourcustomersbypropersizingto100mmatCHPsandFBs.Furthermore,weareputtingefforts for installationof fourcoalwasheries.Themajorchallenge inaminingsector -“EnvironmentalClearance”ofoneproject IBvalleywashery (10Mty)wasgrantedduringthisfinancialperiod.WeatMCL,followactivitiesofMineclosureplanforallourde-coaledmines,whichincludesreclamationofdegraded landbybackfillingandplantation,providingavenuesforentrepreneurship for locality by the financial provision from escrow account. During thereportingyear,MineclosureactivityreportofBhubaneswariOCPissubmittedforaudit.

Wecometoworkwithaprideanddeterminationtodelivertheverybestforallourstakeholdersandbelievethatourproducts,servicesandthevaluetheyaddto our customers' businesses remain the fundamental elements of ourcontinuedsuccess.

Sd/-O.P.Singh

Director(T/P&P)


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MessagefromDirectorFinance:

IfeelprivilegedtobeapartofthisgreatinitiativeofbringingoutthesustainabilityreportofMCLfortheyear2016-17.

MCL,whichisthelargestproducerofcoalinthecountrysharingburdenofenergysecurity,throughthisreportitintendstoinformallthestakeholdersaboutitseconomic,environmentalandgovernanceperformance.

ItisoursincereefforttointernaliseandimproveMCL’scommitmenttosustainabledevelopment in such a way that it is demonstrable for both internal and external stakeholders.

Asaresponsiblecommittedcorporatecitizen,profitmakingisnottheonlymotiveforthecompanybut itwantstosatisfythestakeholderswithdueregardtoenvironmentandsocialresponsibility.

Themanagement is fully committed toembarkuponall the initiatives to fulfil theobjectives.

Just as the financial statements of all the company gives all the stakeholders thesterlingperformanceofthecompanyineconomicterms,thesustainabilityreportshallinformallthestakeholdersofMCL’scommitmenttoenvironmentandsociety.

Iwisheveryonewhoisinvolvedinsuchgreatprocess,agoodluck.

Sd/-

K.R.VasudevanDirector(Finance)


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MessagefromChiefVigilanceOfficer:

Another year has beenpassedwith our

great responsibilities of ensuring accountability,fairness and transparency while accomplishingrespective works and delivering products tocustomers.

Webelievethat“Attitudeofvigilanceneeds

to be associated to themethods of surveillance”.Preventingcorruptionistheresponsibilityofeveryexecutive.Wefollowstandardsandnormsset by the Government of India through its various agencies like the Central VigilanceCommission,whichhelpingrowthofbusinesspracticeswithobjectivesofgoodgovernance.

Duringthisreportingyear,63surprise inspectionsand22regular inspectionshave

beencarriedoutatfieldoperations likeSILOconstructionsite,Qualitycheckofcoalstockyards,e-surveillanceunits,In-motionweighbridgecalibration,Delayinclosureofcontracts,Geo fencing violations etc.which lead to inclusive improvements in our internal systems,processesandpractices.

Detection of corruption activities with the help of better technical and financial

aspectswillelevatethedegreeofefficacy.Wewereabletoassesstheexactcoalproductiononrealtimebasiswith100%weighmentofcoaltipperswithcoalnetconnectivity.WiththeinstallationofGPSbasedVTSandGeofencingofCoalminingareas,thereisdrasticreductionofcoaltheftfromprojects.WealsokeepatrackonourtruckswithinminepremisesandatrailwaysidingsbyCCTVcamerastoavoidillegaldetentionoftrucks.Duetothisstep,thereisareductionofillegaldetentionoftrucksduringnighthoursfrom56trucksperdayperprojectto3-4trucksperdayperprojectandalsothefts.

Wethrowupregularalarmstotracethelogofpendingactivitiesbyamodulenamed

“OnlineMaterialManagement System” in coalnet. During the period of two years it hasresultedinidentificationofpendingitemsworthRs.25Crandreductionof inventoryfromRs.102 Cr to Rs.77 Cr. During 2016-17, an amount of Rs.17.05 Cr was refunded to 3387unsuccessfulbiddersonautomodewithinoneday timeasagainstadelayof3-6monthsearlier.

We are committed for pursuing preventive vigilance by conducting awarenessprogramsatHQlevel,atfieldlocationsandamongstgeneralpublicinthestateofOdisha.AswellclassesonCDArulesandCertifiedStandingOrdersforemployees,interactivesessionswithcoalconsumers,Tenderers/Biddersetc.,bylisteningtotheirgrievancesandsortingouttheissueswithconcerneddepartmentandauthoritiesofMCLarebeingconductedonregularbasis.

IntheLightofThomasJefferson“Lettheeyeofvigilanceneverbeclosed”.

Sd/-MunawarKhursheed(ChiefVigilanceOfficer)


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FromGM’sDesk:

I am proud to be associated with the SixthAnnualSustainabilityReportofMCL themed“Back toroots”, which helps our endeavours to achievesustainablelivingforfuturegen.ThisreportcoversalltheEconomic,EnvironmentandSocialperformanceofour company by following GRI fourth generationguidelines “in accordance”with core criteria. Iwouldlike to share a glimpse our accomplishments andshortfallsinthesedomainsforFY2016-17.

EconomicStability:

Weproduced139.21MTeofcoalduringFY2016-17withagrowthof0.95%ofpreviousyear.Whileachievingourtargetwearecloselyassociatedwithsafetyofouremployeesandenvironment.Amidstvarious consequences,wearecommitted toachieveourproductionthroughenvironmentfriendlysurfaceminersanddeliverhighqualityofcoaltocustomers.EnvironmentalResponsibilities:

Weneedallourstakeholderssupportfor“Backtoroots”bytacklingallchallenges.Werequestallourreaderstosharepointersforimprovementsinthisreport.

Byconfessingtheimpactslikelanddisturbance,airpollution,dischargingofminewaterintosurface bodies and lowering of ground water, etc., we carefully implemented steps tominimisethemontheneighbouringcommunity,theimmediateenvironmentandonlong-termlandcapability. Wereclaimthemined-outareabybackfillingwiththeoverburdenfollowedbysoilcompactionandPlantation.WecontinuouslymonitorlandreclamationprogressofourOCPs.Weplanted1.38Lakhsamplingsthisyear.WecontinueoureffortstocurbCO2emissionsbyreducingourfueldemandsandelectricityusagei.ebyreplacingthefluorescentlightswithLEDlights.Besidesthis,wecoupledupouroperationswithrenewableenergyresources.Wehaveinstalled2MWsolarplantatAnandViharcolonyandplanningoninstallationofsolarpanels on roof tops. In this reporting year, this project has earned us 14,979 RECs andcontributedtoareductioninourcarbonfootprintby21,03,637KgofCO2.Wehavea“MinewaterManagementPlan”torechargetheaquifersbycapturingthesurfaceminewater.Wecontinued to recycle water from ETPs for vehicle washing. We are proud of our “Zerodischarge”ofwastewaterwhichhasmadewateravailable for irrigationandagriculturalpurposes. Our solid waste management follows a strict policy of generating less anddisposinginsafeway.OurEnvironmentalProtectionExpenditureinthisFYis4388.32Lakhs.

Socialupliftment:OurCSRactivitiesaremuchbeforetheCompaniesActof2013cameintoexistence.

We always engage ourselves in the upliftment of the local community by R&Rimplementations,skilldevelopmenttrainingprogramsfortheirlivingetc.DuringFY2016-17weresettledatotalnumberof559PAFs.

Sd/-Dr.AbaniKantaSamantaray(GeneralManager(Environment))


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78.857%

WeareoneofthesubsidiaryofCoalIndiaLimited,largestcoalproducer intheworldwithproductionof554.14MT(FY2016-17),aMaharatnaCentralPublicEnterprise,andGovernmentof India undertaking and Headquartered at Kolkata,West Bengal. The parent company hasoperations ineight Indianstates includingWestBengal,Odisha,Maharashtra,UttarPradesh,Assam,Chhattisgarh,JharkhandandMadhyaPradesh.TheyalsohaveoneinternationalunitatMozambique.OurMahanadiCoalfieldsLimited(MCL)isHeadquarteredatSambalpurinWesternOdishaandowninga ‘Miniratna’CentralPublicSectorEnterprisemark.Ouroperationalunitsarespreadover Talcher and Ib valley Coalfields.We also own three subsidiary companies-MNH ShaktiLimited, MJSJ Coal Limited and Mahanadi Basin Power Limited (SPV). Neelanchal PowerTransmissionCompanyPvt.LimitedandMahanadiCoalRailwayLimitedareourjointventureenterprise.

CoalIndiaLimited

CentralPlanningandDesignInstituteLtd.

EasternCoalfieldsLtd.

WesternCoalfieldsLtd.

SouthEasternCoalfieldsLtd.

NorthernCoalfieldsLtd.

BharatCookingCoalLtd.

CentralCoalfieldsLtd.

MahanadiCoalfieldsLtd.

PresidentofIndiaactingthrough Ministry ofCoal,Govt.ofIndia

OtherInvestors

21.143%

MNHShaktiLtd.

MJSJCoalLtd.

MahanadiBasin

PowerLtd.

70% 60% 100%%

JointVentures-NeelanchalPowerTransmissionCo.Pvt.Ltd.(50%)-MahanadiCoalRailwayLtd.(64%)

CorporateNetwork


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MCL’sBlackDiamondLegacy

CommercialminingbeginsinRaniganjCoalfields,West

Bengal.CoalminingexpandstoChhattisgarh,Assam,AndhraPradeshand

Jharia

NationalDevelopment

Corporationissetup

BCCLformedtomanagecokingcoal

CAMLformedto

managenon-cokingcoal

BirthofCIL

Parentholdingcompanywith5subsidiaries-BCCL,WCL,CCLandCMPDIL

formed.

SECLandNCLcameintoexistence

CCLandWCLsplittoformSECLandNCL

respectively

MCLcomesintoexistence-

AnewsubsidiaryofCILformedthatownedtheminespresentintheOdisha,previouslymanagedbySECL.

MCLearnsthe‘Miniratna’Status.

1992

1975

1774

1956

-197

3

1985

2007

“whenyougointoyourlivingroomtonightandtoggletheswitchandthelightturnson…THANKACOALMINER”


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MCL corporate office is located at Sambalpur in western Odisha completed 26 years ofexcellenceinmining,operatingattwomajorcoalfields-TalcherCoalfieldandIbValleyCoalfieldwiththebestmanagementteam.Wealsohavethreesubsidiarycompanies-MNHShaktiLimited,MJSJCoalLimited,andMahanadiBasinPowerLimited(SPV).

We extract coal via opencast mining and underground mining. Currently we have 51sanctionedminingprojects(including2exhaustedprojects)withasanctionedcapacityof224.41MtyandacapitaloutlayofRs.11,832.52Crore.Ofthese,35projects(including2exhaustedprojects)havebeencompletedwitha capacityof 102.58Mtyanda capital outlayofRs.3,000.017Crore.Currently,thereare16ongoingprojectswithacapacityof121.83MtyandacapitaloutlayofRs.8,832.50Crore.

Ourparentcompanyhasambitioustargetof IBTproductionofcoalby2020 inwhichourtargetis250MTproduction.Wehaveafuturevisiontodiversifyourbusinessintopowergenerationandtransmission,aswellassolarpowersoastoemergeasanintegratedenergyfirminasustainableway.

MapofOdishashowingourcoalfields

MCLHQ

OUROPERATIONS


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MCL’sOtherBusiness:

Withcoalreservesforfewmoredecades,webuildotherbusinesstowardsthermalpowergeneration,powertransmission,greenenergyandmostrecently,thecoallogisticsforenhancingtheavailabilityofcoaltotheconsumerindustries.

PowerGeneration

CoalpowergenerationhasfueledourgrowthtacticsandsustainabilityidealshereatMCL.Wehaveprogressedtowardsestablishingacoal-basedthermalpowerplantof1,600(2X800)MWusingsuper-criticaltechnology,atBasundharaarea,Sundargarh.ThisprojectisslatedtotakeoffthroughoursubsidiaryMahanadiBasinPowerLimited(MBPL).The project is progressing quite steadily by commencing various statutory activities. TheconsultancyisallocatedtoM/sPFCCLimited.PilarpostingisinprogressandfinanceshavebeensanctionedfortheDGMSsurveytobeconductedafterpillarposting.Forfuellinkage,MoChasacceptedtheapplicationforcoalallocationanditisunderconsideration.EffortsarebeingtakentoarrangethePalliSabhabyinteractingwiththevillagePanchayat/SarpanchandtheBDOofthelocalTehsil.WehavemadeprogressinseekingFirmsforCoalAllocation;waterAllocation;andAshUtilizationforenvironmentalclearance.wearealsointheprogressofseekinganNOCfromCivilAviationandDefence.

PowerTransmission

In the FY 2012-13 we ventured into thebusiness of power transmission throughinstallationofa220KVpowertransmissionlinefromBudhipadartotheBasundharaArea.Weenvisaged this as a business diversificationoption thatwould also allowus to illuminatetheremoteareasofOdisha.Ourjointventurecompany Neelanchal Power TransmissionCompany Private Limited (NPTCPL) haspartnered with Orissa Power TransmissionCompanyLimited,forsimilarinterventions.

CoalLogistics

MCL has dedicated itself to expand itsbusiness to Coal Logistics for evacuation ofCoal. Mahanadi Coal Railway Limited,established on 31st August, 2015, is acompany based on an equity participationbetweenMCL,IRCONandIDCOintheratioof64:26:10. The joint venture company willimplement rail corridor projects on a build,construct, operate and maintain model.Specific project activities would includedoubling,thirdlineandtrafficfacilityprojectsthusenhancingcoalconnectivity.

To lead our business in sustainableway, weestablisheda2MWPhotovoltaic SolarPowerplantatMCL,AnandViharduringFY2014-15.During the reporting year, a total of2337375Kwh of energy was generated. Wetransmit this power to theWESCO grid andalsouseinourAnandViharcampus.

SolarPowerplantRenewableEnergyalternatives


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Governancephilosophyandstructure:

AtMCL,ourcorporategovernancePhilosophyis‘PerformancewithIntegrity’-awayofworkingthatenablesustosecuretherightsofshareholderswithtransparencybyretainingtheir confidence in us. In long term commitment for sustainability, we practice thecharacteristics of Good Governance like Participation, Rule of Law, Equity, Transparency,Responsiveness, Effectiveness and efficiency, Accountability, Consensus orientation,StrategicVisiontoourbestextentineverysphereifbusinessactivitiespertainingtoMCL.Asa Government of India undertaking, we continuously try to implement the corporateGovernance Guidelines that are set by DPE. In FY 2016-17 we managed to extensivelyentrench these DPE guidelines throughout our organization structure. For our Board ofDirectorsandourseniormanagementpersonnel,wefollowastatutorydocumentcalledthe‘CodeofBusinessConductandEthics’.

Our Governance structure is in accordance with Coal India Limited. CIL’sorganizationalstructureandgovernanceframework,isheadedbyChairmancumManagingdirector, who is nominated by the president of India. This ensures accountability tooperational management, with the purview of business strategy, policy guidelines andstandardslaiddownbytheboardofDirectorsofCIL.TheCMDwhoheadsMCL,reportstothechairmanofCILandisablysupportedbytheBoardofDirectors.

Here’sourTeam

ShriA.K.JhaChairman-cum-ManagingDirector

ShriK.K.ParidaDirector(Finance)

OfficialparttimeDirectors IndependentDirectors

ShriR.K.SinhaJointSecy.,MOC

ShriJ.P.SinghDirector(Tech/OP)

ShriL.N.MishraDirector(Personnel)

ShriO.P.SinghDirector(Tech/P&P)

ShriS.N.PrasadDirector(Marketing),CIL

Dr.RajibMall

ShriH.S.Pati

FunctionalDirectors


17

Committees

Our Management Committee consist of four functional directors, CMD, two independent directors and two official part time Directors (Nominee). All the Functional Directors of the company are appointed by the Hon’ble President of India. We also have Chief Vigilance officer (CVO) who works closely with MCL. General Managers (GM’s) of various functions and areas, report to the functional directors.

MCL,ourBoardofDirectorshasalsoformed various committees and sub-committees, which function according totheir defined scope of work. The reportingyear of FY 2016-17, evidenced enhancedeffectiveness of the Board, through quickdecision-making and the implementing ofappropriateauditingand reportingsystems,wherevernecessary.Auditcommittee:ReviewstheFinancialandoperationalPerformanceTechnicalsub-committee:Evaluation,appraisalandrecommendationofprojectsforapprovalofMCLboard.CSRandSustainabilitySub-committee:Formulation of CSR policywith recommendactivities to be undertaken such asexpenditureandmonitoringofthepolicy.RiskManagementCommittee:To review the company’s riskmanagementstrategy,policyprocedures.Sub-Committeeforlandousteecases:To Consider and approve all the cases ofEmployment.Cashcompensationetc.asperExistingnormsofR&Rpolicy.NominationandRemunerationcommittee:Remuneration,Review,RecommendOptionsand take decisions on Human ResourceManagement.

RopeShoweloperationatBharatpurOCP


18

Vigilance-StrivingforZeroCorruption:

Vigilance is essential part of ourMCLmanagement for suppressing the unethicalactivitiesof individualgainsat thecostof theorganization.Forgoodwillofcompany,weensure in functions like protecting the honest performers, disciplining the wrong doers,increasing transparency and fairness, ascertaining accountability, reducingwastages/leakages,promoting cultureofhonestyand integrity and reforming systems forcorruption free deliverywith the help of our VigilanceDepartment. Headed by the ChiefVigilanceOfficer(CVO),whoisnominatedbytheCentralVigilanceDepartment,NewDelhi.During FY 2016-17, as a preventive, predictive and pre-emptive vigilance measures, 63surpriseinspectionsand22regularinspectionsinvariousfieldoperationshavebeencarriedoutundertheguidanceofCVO.Duringinspections,weensurethecheckofvariousoperationslikeSILOconstructionsite,qualitycheckofcoalstockyards,e-surveillanceunits,geo-fenceviolations,delaynclosureofcontracts,coaltransportationetc.,Thisdepartmentstriveforimprovingefficiencyandeffectivenessof thepersonnelaswellas theorganizationwithastrategyof‘Watchfulness,Awareness&Caution’.

Watchfulness

• InstallationofGPSbasedVehicleTrackingSystem(VTS)&Geo-fencingofmineareashas been done to prevent the theft of coal. A website www.mclvts.in has beendevelopedformonitoringof1800coaltippersinmineareasfittedwithGPS.

• For the effective implementation ofmonitoring and e-surveillance units, 35 no’s ofCCTVCamerashavebeeninstalledattheentry/exitpointsofthecoalminingprojectsandatthemagazines.

• AnamountofRs.13.63cCrhasbeenrefundedto4292unsuccessfulsuppliers/biddersduring2016-17onautomodeinhasslefreemannerbyonlineAuto-RefundofEarnestMoneyDeposit.

• There was increase in Coal weighment percent from 10-15% to 90-95% byimplementationof In-motionweighbridgeswithRFIDandconnectivitythroughcoalnet.

• Identificationofdeadmoving itemsworthRs.25Crand reduction in inventoryfromRs.102Crto77CrintwoyearshasbeenresultedduetoOnlineMaterialManagementSystem.

• Rotationofemployeesengagedinsensitivejobs.


19

Awareness

During FY 2016-17, Vigilance awarenessweek was celebrated from 31st Oct to 5thNov 2016 with a theme of “PublicParticipation in Promoting Integrity andEradicatingCorruption”.

• During this week, Bidders meet wasorganized at HQ and area level. Weassured them for redressal of theirgrievances. Vigilance Bulletin 2016 andDo’s and Don’ts in respect of differentdepartments was released by MCL forenhancingtheknowledgeofemployeesrelating various vigilance matters.Debatecompetitionswereheldbetweenstudents of various schools andemployees.

• MCL has actively participated in publicplatform of ‘Rahagiree- Patho Utsav’Organized by Bhubaneswar MunicipalCorporationtospreadthesocialmessageof vigilance Awareness, fight againstcorruption,Integrityandtransparencyinpublicdealing.

• MCL vigilance along with XLRI-JamshedpurOrganizedTrainingonEthicsin Public Governance on 28th Feb,2017undertheEthicsandIntegrityclub.

• We get our employees trained inaccordance with organization’s anti-Corruptionpoliciesandprocedures.Thetrend of employees being trained isdepictedinthefigure.

Bidderstakingoathduringtheirmeeton2ndNov,2016

DuringDebatecompetitionamongouremployees

TrendofEmployeesTrained


20

This is an internal controlled system for dealing with cases of fraud andmismanagement.Wearehavingatoll-freenumber(18003456795)whichisactive24x7andemailfacility–cvo.mcl@nic.inthroughwhichstakeholderscanexpresstheirgrievances.-Theseinitiativeshavebuilttheconfidenceinstakeholdersandcomeforthtoparticipateinourwhistleblowing.ThecomplaintswerereviewedandactionmaybetakenbyCMDorCVOorChairmanoftheAuditCommittee.Anewportal“OnlineGrievanceRedressal”foraddressingthegrievancesofstakeholdershasbeenaddedonthewebsitebyGrievanceRedressalcell(GRC).OuremployeesalsohavetheoptionofappraisingtheirgrievancestoChairmanofAuditCommittee.

WhistleBlowerMechanism

FY2016-17:-13vigilancecasestakenupinvolving58employees.-Total9casestakenupforDepartmentalproceedingsinvolving51employees.-Penaltywasimposedin5casesinvolving10employees.

UpholdingTransparency

Caution

• Awork order hasalsobeen issuedfor 376 CCTV Cameras (forinstallation of 21nos.-Highdefinition, day/nightwide dynamicrange Dome camera and 355 nos.High definition 1P Box/Bulletcamera for outdoor and indoorinstallation)at9regionalstoresand2centralstores.

• Installationofmotionweighbridgesatrailwaysidingsforweighmenttoavoid possible pilferage of coalduringtransit.

• Upgradation of railway motionweigh bridges from 130 tonne to150 tonne and weigh rails from 4metersto5.5meters.

• Installation of 2305 nos. of GPSbasedVTS onHEMMS includingallOB carrying dumpers and coaltippersareunderinstallation.

Inprocess

VigilanceawarenessatSt.Paulschool,Burla.


21

HumanRights Preservation, retention and upliftment of human rights is central to day to daybusinessoperations.Wegiveutmost importancetosustainabilityacrossallaspectsofourcompany operations by considering human rights of all our stakeholders and vendorcommunitiesthatresideinourvicinity.Wedon’tendorseanyformorforced,compulsoryorchildlabordirectlyorthroughourcontractors.Toensurethesame,ourcontractmanagementcell (CMC) has human rights clauses in-built in all vendor contracts. During the reportingperiod,therewerenoreportedinstancesofhumanrightviolations.

With its focus on growth andsustainability in terms of mine tomarketvalues,MCLseeksto lookforinspirationoutwardlyaswell.MCLisamemberofseveralindustryassociatesincludingtheconfederationof IndianIndustries (CIL), Standing ConferenceofPublicEnterprises (SCOPE),MiningGeologicalandMetallurgical Instituteof India (MGMI), Coal PreparationSociety of India (CPSI) and Utkalchamber of commerce and IndustryLimited(UCCI).

OurIndustryAssociates

OpenCastMineatTalcherCoalfield


22

• ConferredExcellenceawardbyInstituteofEconomicStudies(IES).• “ScopeCorporateCommunicationExcellenceAwards2016”• SkochBlueEconomicAwardfor“Initiativeforintroductionandsuccessfuloperationof

eco-friendlymassproductiontechnology‘Surfaceminer’inMCL.• ConferredPSULeadershipawardin“Elets3rdPSUSummitandAward”.• BaggedIAFs“EmergingCompanyAward”foroutstandingachievementinBusinessand

SocialServices.• Conferred“TopPSUAward”foroutstandingachievementforthelast25yearsatDun&

BradstreetIndia’sTopPSUs&PSUAwards-2016.

• Bagged two Greentech Awards

for outstanding achievement inTechnology Excellence andTrainingExcellenceat6thAnnualGreentechHRConference2016.

• RajbhasaMukutManiAwardbyBharatiya Bhasa and SanskritKendra for excellent work inRajbhasa.

• 17th Annual Greentech Environmental

Award• BharatpurOCPinGoldCategory• LakhanpurOCPinSilverCategory

• ConferredSkochorderofMeritAwardat

46thSkochSummitforCSRInitiatives.

AwardsandAccoladesforourcompany6-17

HR ENVIRONMENT

CSR

CorporateGovernance

• “The CEO with HR Orientation Award” was conferred upon Shri A.K.Jha,

CMD,MCLbyTIMESascentandworldHRDcongress.• “IndianAchieversAward”was conferred upon by Shri A.K.Jha, CMD,MCL by

IndianAchieversForum(IAF).

MarksofDistinctionEarned


23

Sustainablebusiness-PuttingintoPractice:

Weadoptgoodsustainablegovernancetoenablecollaborationwithstakeholders,suchas investors and consumers in long run, with transparency and responsible polices fordeliveringexcellenceinhealthandsafety,conservationofenvironmentandcommunityandquality service. We follow the CIL’s sustainable policy frame work-2013, to leave anenvironmental friendly footprint encompassing mainly three components Environmentalsustainability, socio-cultural Sustainability and Economic Sustainability.Wemanaged tobring difference in our existence in the society by believing ‘Sustainability starts withinourselves’.

MaterialityAspects

Sustainablestrategies

SustainableKPIs

Objects&Targets

SustainabilityProjects

Stakeholders

Employees

Government

Villagersandcommunity

Customers

Contractors,Suppliersand

vendors

Media

MonitoringandReviewCoreFunctions,Mining,Maintenance,Marketing,HRD,IT,Procurement,R&D,CSR,Projects

Sustainability

Values

MissionVision

Community

NGO


24

Sustainableperformanceassessment2016-17:

ProductionandProfits

CoalProduction Achievedaproductionof139.21MTofcoal,withagrowthof0.95%againstlastyear

Overburdenremoval Theoverburdenremovalwas123.34Mm3withagrowthof25.33%

Coalofftake Theofftakeofcoalquantitywas143.01MTewithagrowthof1.99%ofpreviousyear.

Increaseinwagonloading Thewagonloadingis66.2Rakes/daywithanabsolutegrowthof1.22%againstlastyear.

Riseinthefinancialperformance

ThetotalprofitaftertaxisRs.4491.09Croreagainstlastyear’sRs.4207.75crore.

Healthandsafety

Fatalincidents Thereare6no’sfatalincidentsagainst2no’sinlastyear.

Occupationalillnesscases Nooccupationalillnesscasesrecorded

Seriousinjury Fatalitywas6no’sagainst2no’sinlastyearandno.ofseriousinjurieswere8no’sagainst4no’sinlastyear.

HumanResourceManagement

No.oftrainingprovidedtoexecutiveandnon-executiveemployees

Totalno’sof8183employees,bothexecutiveandnon-executivewereinvolvedintrainingsincludedtraininginhouse,outsidethecompanyandabroadagainst9700

employeesinlastyear.

FocusonGenderdiversity Thepermanentandcontractualfemaleworkforceincreasedabout3.08%and50%bypreviousreportingyear.

HiringoffreshTalent 832employeeswerenewlyrecruitedincludingexecutivesandnon-executives.

NumberofMineClosureactivity

MineclosureactivityfileofBhubaneswariOCPissubmittedforaudit.


25

Environment

IncreasingthenumberofISO14001Certifiedunits

WeareoneoftheofCertifiedunitsofparentcompany

EnergyconsumptionandRenewables The electricity consumption is 302.0813Million kWhwith a slight increase by 0.48%againstlastyear.WehavesolarpanelunitatHeadquarterlevelandinitiatedforinstallationof12solarrooftopsatareaandprojectlevels.Thesolarplantatcontributedtoareductioninourcarbonfootprintby21,03,637KgofCO2.Around 10,469 LED lights have been fitted(new+replacement)atourpremises.

Increasedtreeplantationforecologicalrestoration

Sinceinceptionwehaveplanted52.19lakhsofsaplingsand1.38lakhssaplingsthisyear.

Community

Setting up rigorous governance andoversightsystemsforCSRprograms

Our parent company has entered intoMOUwithTataInstituteofSocialSciences(TISS),anational CSR hub for implementation of CSRactivities.WeatMCL,haveCSRcommitteeatHQandarealevel.

Development impactful communityprograms-basedonexperience,studiesandcommunityfeedback

MajorCSRinitiativeshavebeenundertakeninthefieldsofwomenempowerment&childeducation,ruraldevelopmentprojects,

health,sports,environment,water,SwacchBaharatandskilldevelopment

It’s not easy to attain sustainability in every aspect, we are striving to improve our flaws.

Avenueplantation,LingarajOCP

CashewnutplantationatBalandaOCP


26

Sustainablemanagement:

WeframeworkourSustainabilityManagementtoprovideproductsandservicesanddriverevenue growth through early market entry into new socio-environmental businessopportunitiesandenhancing reputationaladvantage inanewandgrowingmarket. It is aframeworkunderwhich“extra-financial”environmental,socialandgovernance(ESG)issuesare addressed in conjunctionwitheconomic and financialmatters. Stakeholder concernsagainstthebusinessimpactallowedforpreparationofthematerialitymatrixwhichwouldactasguidanceforthetopmanagementwhileintegratingthesustainabilitymanagementwithinthe business strategy.We ensure sustainablemining practices by considering safety andhealthoftheemployeesandcreatingvalueforcommunity.Ourparentcompanyreviewsourannualactionplantomeetourgoalsandperiodicallyreviewstheprogressoftheactivitiesweundertakeatthisend.

Riskmanagement:

BoardLevel

HQlevel

Arealevel

CSRCommittee

• HeadedbyIndependentDirectors• Allthefunctionaldirectorsare

members.

• HeadedbyD(P),MCL• Thereare9membersinthecommittee• GM(CSR)istheNodalofficerofCSR.

• HeadedbyAreaGMorCGM

Besides this, we also have anEnvironment Department and theCSR department, who take severalinitiativemeasures tomitigate ourimpacts on environment and localcommunity due to our operations.The CSR committee at MCL is ofthreetypesincludingthearealevel,the HQ level and the board level(depicted in the picture). A reviewmeetingisheldforeverysixmonthsbytheboardofdirectorstoanalyzephysical and financial progress oftheCSRactivities.OurCSRprojectsare evaluated by externaldependentagencywhichshowanygaps that may be missed out andshows the results in a morewholesome manner with theexternalcommunityinfocus.

Sustainabilitymanagementisariskmanagementtoolnotjustintobuildingandmaintainingthe capacity to understand the risk of new socio-environmental businesses. We avoidnegativeconsequencesbyidentifytheRiskatfirstplaceandthenassessingittocontrolindifferentfunctionalareasofthecompanyforaneffectiveriskmanagementprocessbecauseofinherentrisk,externalandinternalrisks.Wehave“Riskmanagementcommittee(RMC)”atMCL to complywith theprovisionsof the requirementsof the section134 (3) (n)of thecompaniesAct,2013.


27

AtMCL,wemonitorsomecriticalfactorslikeacquisitionofland,forestclearance,landoutseeproblems.Wealsogiveemphasisonstrengtheningourinternalmachineryforensuringsmoothoperationofthecompany.Someofthekeyconcernsandtheassociatedrisksandopportunitiesarediscussedbelow.

Keyconcerns Risks Opportunities

Forestryclearanceandenvironmental

clearance

Delayinobtainingclearanceshamperstheproduction

performanceoftheprojects.

Scopetostreamlineprocessesandhaveanactionplan

consideringthisaspectwhichwouldallowflexibilitytooperate.

Rehabilitationand

resettlement

TheeconomicperformancemaybeimpactedduetothehighcostofR&Rinterference.

Scopefordevelopingalternativemechanismstoreducecostsand

enhancecommunityengagementstoresolveissuesat

grassrootlevels.

Employment Lawandorderproblemsandobstructionsofminingand

coaltransportationoperationswillberesulteddueto

demandofemploymentfromthelocalcommunitybeyond

theprescribenorms.

Scopetodevelopadequateskilldevelopmentprogrammesthat

wouldeventuallyleadtoavailabilityofworkforcewithskillsetessentialformining.

ProcurementofHEMMsandotherE&M

items

LongleadtimetoprocureHEMMsandotherE&Mitems.

Scopetosimplifyprocurementprocess.

This cellwas first formed in2011-12 by a separate sub-committee of the board and laterreconstituted on 09.02.16 andGeneral Manager (S&R) has beennominated to act as Chief RiskOfficer(CRO).

This cell coordinate andcomplywith thematters related toRiskManagementandalsosuggeststheBoardforanychangesrequiredin risk management strategy,policiesandprocedures.

Shri.J.P.SinghDT(O)deliveringspeechat

“RiskThatMatters”workshop.

KeyRisksandConcerns


28

Stakeholderengagement:

Stakeholdersaretheindividualswhoareaffectedbyorcaninfluenceacompanyorproduct throughout its life.These individuals canbe internalandexternal fora company.Withouttheongoingparticipationofstakeholders,itishardforustosurvive,asorganisationsandstakeholdersaremutuallyinterdependent.Thus,weconsiderstakeholderengagementasan importantpart inourproject lifewhichhelpsus inexpressingourvalues, carryourmission, develop strategies, implement processes, identifying risks of the outcomes andimproverelationshipsonacontinuousbasis.Weunderstandtheconcernsofstakeholdersandweaddress thembyreaching to theirexpectation level forsustainablegrowthofourorganisation.Theoutcomeofthestakeholderengagementprocessisanalyzedtoidentifyandprioritizethematerialaspectstobeconsidered.

EngagementStrategyatMCL

Identify

Assess

Identifyingrisks

Benefitedwelfareprograms

We at MCL, first we identify theimportant stake holders and theirinterests by informing them about ourplansandthenweassesstheirpowerofinfluence in the project life cycle. Weunderstandthestakeholderconcernsonthe same and identify their risks. Wedevelopastrategyforbuildingbenefitedwelfare programs for stakeholders. Weengage with stake holders Monthly,quarterly, and annually based on theirconcerns at different stages of theproject.

Stakeholdersmeetduringvigilanceawarenessweek-2016

RajabashakaryashalaforstrengtheningtheRajabashaPakhwadaheldon23rdApril2016.


29

Government

- MinistryofCoal/CoalIndia/RegulatoryAuthorities

Performance report, BoardMeetings, Compliance reports,Inspectionvisits,Labourmeets

Monthly,Annually

Employees

Vigilance week, Safety week,Performance appraisal, Trainings andseminars, Induction meeting of newemployees with senior management,Annual report, Sustainability reportand Rajbhasha Pakhwada, Industrialrelationsmeetingswithunion leadersregarding wage negotiation, Monthlyco-ordinationmeetings.

Monthly,Quarterly,Annually

CustomerConsumer complaints system andRCCC meetings with customersregarding quality, size and Deliverytimeofcoal.

Quarterly,Ongoing,Annually

Contractors,suppliersandvendors

Regardingqualityofitemsofsupply,supply schedule, NIT conditions byteam interactive sessions withconcernedpeople.

Monthly

Community Ongoing

Public Hearing/ Consultation (Fornew & Expansion projects) as andwhen required Regular meeting intheprojectregardingrehabilitationandresettlementcompensation.

NGO&MediaAspertheguidelinesprescribedbyMoEFregardingimpactsofminingactivities on the community andcountry.

Wheneverrequired

Howoftendoweengage?ModeofEngagementWeengagewith


30

MaterialityAnalysis:

Materialityassessmentistheprocessofidentifying,refining,andassessingnumerouspotentialenvironmental,socialandgovernanceissuesthatcouldaffectourbusinessandourstakeholders. We believe that materiality analysis will be an opportunity to apply asustainability lens to business risk, opportunity, trend-spotting and enterprise riskmanagementprocesses.

MaterialityIssues

RehabilitationandResettlement

Dispatchandtransportationofcoal

EnergyEfficiency

Healthandsafetyofemployee

LandAcquisition

Productiontargets

SupplyofQualitycoal

Infrastructuredevelopment

Employeecreationforlocalcommunity

Skilldevelopmentoflocals

Regulatorycompliance

Wateravailability&Dustmitigation

TalentRetention

VigilanceandAnti-corruption

TrainingsessionsonTailoringatruralareasofBargarhDistrict

AIDSawarenessprogramheldbyMedicalDepartment,MCL.

SkillDevelopment HealthAwareness


31

MaterialityMatrix:

We believe to get themost of themateriality assessment process, not onlywithin thesustainabilityteambuttoinvolvepeoplefromrightacrossthebusiness.Wefirstprioritizethemostmaterialaspectsandthenassessqualitativelybyourmanagementteam.Finally,wehavecomeupwiththematerialitymatrix(3´3)thatisaunionofbothstakeholderperspectiveandmanagementperspective.LandacquisitionandR&Rremainthemostpertinentissuesofourcompany.

• Timelypayments

• Skilldevelopmentoflocals

• Employeecreationforlocalcommunity

• Maintenanceofcoloniesandofficeinfrastructure.

• Regulatorycompliances

• CoalQuality

• Landacquisition

• R&R

• Healthandsafety

• VigilanceandAnti-corruption

• Coaldispatch

LOW

MED

IUM

HIGH

• Landreclamationandmineclosure

• InfrastructureDevelopment

• Productiontargets

• Energyefficiency

• Talentretention

• Wateravailability

• Dustmitigation

RELEVANCETOMANAGEMENT

MEDIUMLOW HIGH

RELEVA

NCETO

STA

KEHO

LDER

S


32

Accomplishmentsin2016-17:

Ourcompanyproduced139.21MillionTonnes(MTe)ofcoalduringFY2016-17withagrowthof 0.95% of previous year. Most of our coalproduction, was reaped from our opencastmines(OC).Thecoalproductionfromopencastand undergroundmines (UG) from last threeyearsisdepictedinthefigure.Off-takeofcoalduringthisyearis143.01MTewithagrowthof1.99%ofpreviousreportingyear.Thedetailsofproduction performance and economicperformance is provided in the Annexures inourKeyPerformanceIndicators.

Coal production andOB removal accomplished is only 83.4% and 82.2% of our annualappraisalproduction(AAP)targetthisyear.Therearesomereasonsthatpreventedusfromachievingthetarget.

• RestrictionofproductivityduetoattainmentofForestclearanceforAnantaOCP.

• WeareunabletoworkduetorehabilitationandresettlementproblematBharatpurOCP,KanihaandBalaramOCP

• DuetonumerousfaultsatLingarajmines,weareunabletoreapourcoal.

• TherewasalsostrikebylocalvillagesatTalcherCoalfieldon30thand31stMarch,2017.

MCListhefirstsubsidiaryofCILwhichintroducedSurfaceMiners–blastfreetechnologyensuringhighproductivitywith minimal environmental impact.Thereissteady increaseintheshareofcoalproductionbysurfaceminerswhich eliminated conventionalmethodslikedrilling,blasting,loadingand transportation, which is timeconsuming, labour intensive andcostly. Our production by surfaceminer FY 2016-17 has increased to91.8%against91.1%inpreviousyear(Depictedinfigure).

Coalproduction(inM.Te.)

%ProductionbySurfaceMiner


33

Productivityimprovementscheme(PIS)wasformulatedandapprovedin2009-10with

the basis of the productivity valueswith the purpose ofmotivating the employees. Thisschemehelpedusinimprovingthedailydepartmentalproductionandtrips,andtomaintainthe availability and utilization of HEMM. The program also aimed to reduce overtime, increatingaproductiveclimateandencouraginghealthycompetitionamongsttheoperatorsandmaintenancepersonnel.AsoftwarehasbeendevelopedthroughcoalnetMCLssystemdepartment, in coordinationwith the Industrial Engineering department (IED) for speedycalculationofPISearnings.WeevenfocusonRapidLoadingSystemtoimprovecoaldespatchprocess. Other measures include the installation Of GPS based vehicle tracking system,OperatorIndependentTruckdespatchsystem(OITDS),WeighbridgeswithRIFDarediscussedlater inVigilancepart.All these leanpracticesmakeuscommittedtothe improvementofproductivity.WealsohavePersonnelinformationsystemforcapturingdetailedinformationalongwithphotographsofcontractualworkers,PeriodicalMedicalExamination,tendersandawardsbelowRs.2lakhs,Filetrackingsystem,onlinecontractmanagementsystemsetc., TheactivitieslikeRoadsale&Railsalebilling,billingpaymentstatusentry,updatingofemployeedata, Productiondetail entry, onlinematerialmanagement systemetc. areoperational incentralcoalnetserveruptoAreaandprojectlevel.

CoalexcavationbySurfaceMineratBasundhara(W)OCP


34

0 5000 10000 15000 20000 25000

profit

After

tax

Profit

Before

tax

Gross

sales

2016-17 2015-16 2014-15

EconomicPerformance(INRCrores)During FY 2016-17, our company

achieved all time high Gross sales value ofRs.24291.14 crores (including STC) with agrowth of 17.93% of previous year. Since lasttenyearsMCLhasbeenconsistentinpaymentofdividend.InterimdividendofRs.2982croreshasbeenpaidonEquityshareCapitalduringthisyear. The profit before tax for this year isRs.6853.32 Cr with a growth of 9.069% ofpreviousyear.TheprofitaftertaxforthisyearisRs.4491.09 crore against last year’s PAT ofRs.4207.75Crore.

PIS

Part-I

Part-II

Part-III

Operators Maintenance personnel

Directly linked with production

HEMM maintenance personnel

HEMM operators

Indirect other than quarry worker

Personnel linked with coal despatch

ManridingsystematHBIMine.

ShriO.P.SinghDT(P&P)atGSTmeet

WereceivedafinancialassistancefromMinistryofCoal,GovernmentofIndiaintermsofCoalMines(Conservation&Development)Act1974towardssandstowingandprotectiveworksofRs.2.24Croreandhavenotgivenanydonationstoanypoliticalpartyduringthereportingperiod.


35

MEETVupplaVenkatakamaRaju:AspiringFinanceprofessional

V.V.K.Raju,GeneralManager,Finance

In 1993, he joinedMCL HQ afterworking 6 years for SECL. He evenworkedwithVigilancedepartmentforperiodof9monthsatMCLHQ.DuringhisperiodatBalandaProject(JagannathArea) heworked under the guidance of chief generalManager andwith areaaccounts office where he functioned as “Secondman of Area FinancialManager”. Beingfinance isastaff functionwhere theperformanceofsumcannotbemeasured inphysicalterms.HeisthatchampoffinancedepartmentofCILwhodevelopedExcelprogramforOverBurden Removal accounting for MCL way back in FY-2000, thus increasing the workefficiencyamongtheexecutivesandstaff.DuringhistenureinBalandaprojecthedevelopedno. of user friendly excel programs like income tax computation of all employees, housebuildingadvancecalculationsetc.,

HealsoworkedforWesternCoalfieldsLimitedasAreafinanceManager/DeputyGM(Finance)atKanhanandChandrapurareasandaschiefofinternalauditatWCL,HQ.AndonpromotionasGeneralManager(Finance)hewastransferredtojoinMCL.Hefindstheworkculture ofMCL competent where all workers and supervisors are very co-operative, andbelievesthatparticipativemanagementisatthehelmoftheenvironment.Heisnowworkingtowards the implementationofERPwhichwouldhelp the trackinganddeliveryof files inshortduration.

However,hefeelsthatfacilitieslikeinfrastructurecanbeconsiderablyimproved.

Inhisownwords

“Iwouldliketopushtheideaofdemolishingtheagingcolonystructurestoplacemultistoredbuildingstoeliminatetheshortageofquartersfortheemployees.”

Here we introduce you to ourfinanceprofessional“V.V.K.Raju”-GeneralManager (Finance). Since 1987 he isassociatedwithCILandduringhis careerheworkedfordifferentpostsfromFinanceManager(E-2Grade)toGeneralManager(E-8grade).HegraduatedB.com(Honors)fromBarampuruniversityandpursuedhisCAfromInstituteofChartedAccountantofIndiaandalsoholdsLLBdegree.HeworkedwithdifferentsubsidiariesofCILbutmostofhiscorporatejourneyisassociatedwithMCL.


36

ContractManagement-AnassettoBusinessrelationships:

WeatMCL,believeindeeperbusinessrelationshipsbuiltwithtrust,understandingandempathy. In our procurement practices,wemaintain transparencywith our supply chainvendorstoproducemoresustainablegoodsandservices.Wemaintainthetrustregardingthedeliveryofresourcesduringtheprocess.Itisalsoouraimtobroadenoursupplierbaseand establish the youth in the state ofOdisha as entrepreneurs, for amore evolutionaryapproach thatwill keepgrowthatevery stageofouroperations.To thisend,weprovidebusinessopportunitiestosmallscaleindustries(SSIs)andextendsimilarsupporttoourPAFs,throughauniquevendordevelopmentschemeonlythroughnominations.Procurementpractices:AtMCL, theprocurement isdecentralisedand individualdepartments request for theservicestheyneed,independently.Thisensuresthatthereisquickdecisionmakingandbetterresponsibilityandaccountabilityatthecoreofallourstructuresandtheirfunctions.ThenourmaterialsandmanagementDivisionhandletheprocurementoftheseproducts.Wefollowprocurement policy of CIL which adheres and resonates with our sustainability side. Theprocurement process involves e-tendering where bidders upload their credentials andquotations.Fromamongstthebidderswhomeetthequalificationcriteria,thebidderwithanL1quoteisselected,aftertheyacceptallourtermsandconditions.SupplychainVendors:Wealwayslookforwardforstrengthenrelationshipwithvendorswhoarenotengagedincorruption.Wehavemadeitamandateforourbidderstosignan‘integritypact’beforetheybidforanywork.WealsohaveIndependentExternalMonitors(IEMS)whokeeptrackofanycorruptpracticesofourvendors.OursuppliersevenhavetheprivilegeofapproachingtheseIEMs.Wemaintainhonestrelationshipwithourvendorsthroughoutourprojecttenure,toensure that they offer prompt services, whilst meeting set deadlines. We invite theirsuggestionstovigilancedepartmenttoimproveourprocurementprocess.Wealsoresolveanygrievancesthatourvendorshave.

SupplychainVendorsforcoalproductionorientproductsand

services

BCML(TransportationandoverBurdenMaterial)

• BEML(Equipment’sandspares)

• SAIL(Ironandsteelmaterials)

• Beltings(Fenner,Forech)• ConveyorBeltings(Internationalconveyors)

• OtherlargesectorenterprisesandSSIs

Statelevelvendordevelopmentprogrammecumbuyer’ssellermeetorganizedbyMCLinassociationwithMSME-DICuttackandRCSambalpur.


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REGULATORYCOMPLIANCES

WeatMCL, follow regulatory compliancesmaking sure thatourmining activitiesconductedshouldbereasonableandwithinlegalparameterstoholdthelong-termsuccessofourbusiness,fromitsfinancialhealthtoourreputationwithinourindustryandwithclients.

Duringinitiationorforexpansionofaproject,wefollowproperguidelinesofMoEFtoobtainEnvironmentalandForestclearances.Besides,duringproductionactivities,weneedtomonitortheenvironmentalconditionsonaregularbasisandsubmitreportstotheSPCBandMoEFasperthestatute.AtMCL,ourroutineenvironmentalmonitoring,ofair,waterandnoisearecarriedoutthroughCMPDIlaboratories,dulyrecognisedbytheCentralPollutionControl Board (CPCB).We strictly adhere to themethodology, frequency, etc. as per theguidelineslaiddownbyCPCB.

We have registered for an IntegratedManagement System conforming to QualityManagement (ISO 9001:2008), Environmental Management (ISO 14001:2004) andOccupationalHealth&SafetyManagement(OHSAS18001:2007),toensurecompliancewithenvironmentalnormsandstandards.Wearealsointheprocessofapplyingforaccreditationfor ISO 50001:2011 for an Energy Management System to manage the rationalizedconsumptionofallenergyinputsinourorganizationandforSA8000SAMformanagingsocialaccountabilityconcernsoftheorganization.

CoalEvacuation:

Itisourresponsibilitytoprovidethedemandedquantityofcoaltoourcustomersontime with transparency which enables us to retain their confidence in us.We have wellestablished system for tracking the quantity of coal we dispatch to our customers. Wedispatchabout64.69%ofourcoal throughrailways.Wealsohaveother facilities forcoaltransportation through road,merry-go-round (MGS) and conveyor belts to fulfil needs ofconsumers.We use in-motionweighbridges at railway sidings, electronic rail bridges andstandbyweighbridgesandhavesucceededinachieving100%weighmentofourcoalsupplies.WestriveforhighCustomersatisfactionlevelsforramping-upperformanceofourbusiness.Weassesstheirissuesbyfrequentinteraction,maintainingrecordsofcomplaintsatsidingsandgettingfeedbackfromthemfortimelyandrelevantevolutionofoursystems.Wehaveevencreatedexclusiveportalforconsumercomplaints,whereregisteredconsumerscanlisttheirgrievances.WehaveNodalofficersofQCdepartmentwhocontinuouslymonitortherailwaysidings.

Wefulfilenergyneedsofvarioussectorslikepower,cement,CPPandcoll.Consumptionthroughthesupplyofourenergybasket.InterestedbuyersliftupourcoalthroughFSA(FuelSupply Agreement) or through e-auction, by dealing them as per the directives of theMOC/CILortheFSA.


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16%

3% 2% 1% 1%

2% 52%

3%

12% 8%

Andhrapradesh

Chattisgarh

Gujarat

Haryana

Jharkand

Karnataka

Kerala

Maharashtra

The balance quantity ofcoal after being lifted bycustomersisusedasanindicatorofcustomersatisfaction.Whenacustomer liftsbeyondthetriggerlevel, they pay an incentive toMCL. When the supply is belowtrigger level, MCL plays acompensation to the customer.Duetothesein-builtmechanismsin our selling schemes, fines fornon–compliance with laws andregulations concerning theprovision of use of product andservices,donotapplytoMCL.StatewiseCoalDispatchforFY2016-17

During2016-17MCLhadoffered44.646MTeofcoalunderspot,forwardandotherspecial type of e-auction against 32.405 MTe which was booked by different biddersregisteringapremiumofRs.733.24Croreovernotifiedprice.DuringFY2016-17,wesuppliedcoalto12statesinIndianamelyAndhraPradesh,Chhattisgarh,Gujarat,Haryana,Jharkhand,Karnataka,Maharashtra,MadhyaPradesh,Orissa,Punjab,TamilNadu,WestBengal.

OnthewayforcoalloadingatBharatpurArea


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Cleanproductionstrategies: Wehaveadoptedseveralinitiativesforcleanstrategiestoabateourimpactonglobalclimatechange,whichwillimprovethesustainableperformanceofMCLinthelongrun.Thevital aspects of initiatives- the optimization of energy usage, afforestation and watergovernance. Optimizationofenergyusage:

Fuel(HSD)andelectricitybeingourprimaryenergysources,we intendtomaximizeutilization of them by adopting low carbon technologies like surface miner and alsoimplementingalterativerenewableenergyresources.

Afforestation:

Itisalwaysrememberedthatonetreemeansonelifeanditistobesavedforourownsafety.Landclearingactivitiesincoalmining,ultimatelyresultsinthelossofforestsandtheirbenefits.SounddevelopmentofEnvironmentbecomesanimportantrequirementforMCL,whichsteerustoincreasegreencovertoreducethedustemissionsproducedandalsotheelevatedtemperaturesofareasinthepremiseofourmininglocations.Watergovernance:

Everystageofcoal’slifecycle—fromminingtoprocessingreliesonwater.Thewaterweuseiseitherextractedfromsurfacewatersourcesorthewaterfromourminesumps.Weare focused on more target base approach to maximise our storage capacities thanwithdrawing the water from surface resources. We are further fulfilling our domesticpurposesinBasundharacolonybytreatingtheabandonedMinesumpwater.Wealsodivertsurpluswaterforrechargingtheaquifers. EnergyEfficiency

Weareactingnowandadoptingpoliciesforfullpotentialofenergy-positiveefficiencyinconcernwithrenewableenergyresourcesand lowcarbontechnologies.Oureffortsaretunedtoreduceourconsumptionforbothfuelandelectricity.

FuelEfficiency

WeextensivelyusevarioustypesoffuelforourHeavyEarthMovingMachinery(HEMMs) (draglines, shovels, surface miners, dumpers, dozers, drills, loading machines,graders,watersprinklersandcranes)andotherLMVsthatweemployforcoalproduction,OBremovalandcoaltransportation.Wealsouserawmaterialssuchasexplosives,detonators,andsoon.FuelfortheseHEMMsaccountsforourhighdirectenergyconsumption.DuringFY2016–17,weusedatotalof46528781Loffuel(includingdiesel,petrolandlubricants)forourHEMMs,departmentalvehicles,andD.G.sets.Thistranslatesthat1670686GJofenergyisbeingconsumed.Thefuelconsumptioninourcontractualvehicleswas84025637.4Lequatingto 3024170GJ of energy consumption. The following figure on ‘Fuel Consumption Trend’depictsourusageduringthelastthreeyears.


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• Ensuringtheproperinflationoftyres

• Regularsurveillanceofself-starters,alternators,andbatteries

• MonitoringofourspecificdieselconsumptionasperthenormsofCMPDIAll theseeffortshavedecreasedtheusageofFueland lubricantconsumption forcoalproductionby4.78%and17.59%respectively.

FuelconsumptionTrend(L) During FY 2016–17 we haveattemptedtocurbourfuelandelectricity requirements. Inorder to minimize ourconsumption of fuel andlubricants, we have taken thefollowingsteps:

•Periodic overhauling ofengines, transmission andhydraulicoperatedsystems

•Periodic checking of hosesandtheirrouting

•Preventing the leakage ofhydraulicoilfromequipment

DraglineOperationatBharatpurOCP


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Carbon footprint: Theuseofsurfaceminersforexcavationofcoalandsubstantialgreencoverhelpsustocontrolourcarbonemissions.Theproduction of coal through surfaceminers FY 2016-17 is 91.8%whichwaselevated by 0.7% compared to thepreviousyear.Weestimatethatweareable to avoid approximately 1,30,000TCO2emissionsduetothis.Weestimateacarbonfootprintreductionof1,04,380TeofCO2at therateof20kgper treeperyear,duetoourgreenshade.

Inadditiontothiswealsoensuretoreduceourdieselconsumption(Departmentalvehicles).DuringFY2016–17,ourcarbonemissionwasrecordedasTCO2duetofuelconsumptioninour departmental (Scope 1) and contractual vehicles (Scope 3) and our electricityconsumption(Scope2).

By our cautious efforts, we have achieved areduction in fuel consumption (Scope 1& 3)compared to the previous year and carbonequivalents of electricity has increasedcomparedtothepreviousyear.

TCO2Emissions

We took the following initiatives toreduceelectricityconsumption.

1. Conventional lamps were replacedwithLEDlamps.

• 19 Watt LED tube lights asreplacement of 40 Wattconventionallight-5956nos.

• 10 Watt LED tube lights asreplacement of 20 Wattconventionallight-500nos.

• 90 watt LED street lights asreplacement of 400W/240WHPSV-453nos.

• 45 watt LED street lights asreplacement of 90W/150W HPSV-60nos.

• LED cap lamps as replacement ofconventionalcaplamps-3500nos.

2. As mentioned in earliersustainability report, MCL isprocuringonly5starratedACs.InFY2016-17, 89nos. of 5star ratedACswere procured in additional to60nos. which were procured in FY2015-16.

Electricityconsumption(MillionKWh)

The electricity consumption within ouroperationsinFY2016-17is302.0813MillionKwH.We regret to inform that there is aslightincreaseinElectricityconsumptionby0.48%withrespecttothepreviousyear.


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RenewableEnergy

Thesourcesofcarbon-freeelectricitywiththemostpotential,Solarpowerplantof2.016MWpeakwas installed inMCL (AnandVihar complex). Theproject has earnedus14,979RECs(RenewableEnergycertificate).DuringthereportingperiodofFY2016-17,theplantcontributedtoareductioninourcarbonfootprintby21,03,637KgofCO2.Wehavealsoinitiatedaprojectofinstalling12solarrooftopplantsoverourservicebuilding,workshop,hospital.

WaterManagement:Water is a necessary resource for many of our operational purposes, such as,

suppressionofdust,coalwashing,andcleaningofHEMMsaswellasdomesticrequirements.

Groundwaterissues

IssuesrelatedtoavailabilityofgroundwaterisamajorconcerntoMCLasmostofitsoperationsinwaterstressedzonesofOdisha.Owingtothenaturalclimaticconditionsandterrain, it is difficult to evade the problem of water quantity and quality completely. Toevaluate the sustainabilityofgroundwater forourpurposesweunderstand thechemicalcompositionofgroundwater.Beingaresponsiblecorporate,weconsideritourdutytomakethisessentialresourceavailabletoourextendedfamily–ourlocalcommunity.

Wealwaysthrivetoattainourlongtermgoalofachievingpositivewaterfootprint. Inthisregard, thebestway to reduceourusageof surfacewaterbyefficientwater storing andmaximising the recycling ofwater, evenwe takemeasures like implementing controls tomitigate the impact of disproportionate water discharge. The water that we use in ouroperationsiseitherextractedfromthesurfacewatersourcesoristhewaterstoredinourmine sumps.Mine sumps are naturalwater harvesting structures created after completeevacuation of coal from amine pit. Thesemine voids are a great boon as they have thecapacitytostoresufficientwaterforourindustrialanddomesticneeds.Regularmonitoringof groundwaterquality and fluctuationdue tominingoperation isbeingdone throughanetworkof40nos.ofpiezometersaswellasotherborewells.

Waterconsumption

Surfacewaterisfareasiertoreach,sothisbecomesthemostcommonsourceofourwaterneeds.ThesurfacewatersourcesforouroperationsareBrahmani,Mahanadi,Ib,andBasundhararivers,andalsothepowerchannelontheMahanadiRiver.Usingthissourceinaresponsiblewayisamajorpartofthewayweoperateintermsofsustainablereactionstoourwaterbasedneeds,evenasweseektorecyclewaterandreplenishthissource.DuringthereportingperiodoftheFY2016–17,wedrewonly24,630.08millionlitersoffreshwaterfromthesevarioussurfacewatercoursesandrecycledapproximately37.93%oftotalminewater.Wehaveensuredthatthesesourceswerenotaffectedduetothewithdrawalofwaterforouroperations.Wewitnessedthatstorage inminesumpsthroughrainfallandsurfacerunoffhasenhancedsignificantly(Refergraphon‘SurfacewatervsMineSumpWater’).


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Drinkingwatersupply

Thewaterwesupplyfordrinkinganddomesticuse,iswithdrawnfromsurfacewatersources or fromminewater sumps is adequately treated in ourWater Treatment Plants(WTPs)operationalinTalcher,Ibvalley,BelpaharandBasundharaundertheIntegratedWaterSupply Scheme (IWSS). Treated underground mine water is also supplied as water fordrinking, domestic and agricultural uses to the surrounding villages in our mining areas.Around11,125KLDand756KLDofdrinkingwater issuppliedatTalchersubdivisionandIbvalleyCoalfield.

SurfaceWatervsMineSumpWater(MillionLiters/year)

Also, we observe that our currentusage of mine water has been34,737.780 million litres. All thesefactorsputtogetherhasresultedinreduced water quantities when itcomes towithdrawal from surfacewater sources. This further boostsourenthusiasmtocontinuewithamore target based approach tomaximise our storage capacities,maximiserecyclingand reduceouroverall usage to have a positivewaterfootprint.

WaterharvestingatJagannathOCP


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Wastewatertreatment

Webidourselves toutilise thewater ina sensibleway.Wecarryout thewastewatertreatmentbyemphasizingtheconceptofrecyclingandzerodischarge.Atpresent,thereare9sewagetreatmentplants(STPs)operatingintownships.Wealsohavesettlingpondstotrapthesiltfrommineestablishmentsrunoff.Thereare22operatingsettlingspondswhichareMinedrainage treatmentplants (MDTPs).Wehave also created garlanddrains and catchdrainsaroundthequarryboundaryandOBdumps.Theseareusedtoarrestsedimentsandsiltingofnaturaldrainage.OurHEMMworkshopsare facilitatedwithoil andgrease traps(OGTs)andworkshopeffluenttreatmentplants(WETPs)fortheremovalofoilandgreaseaswellastheoilsludgefromthewastewatergeneratedaftercleaningourHEMMs.Atpresent,weoperatewith17WETPs.Additionally,wehaveadoptedthezero-dischargestrategyforallthe ETPs/OGTs of HEMM workshops and the treated water is completely reused in theworkshops.

Makingwavesinwaterinnovations

• ZeroDischarge-Downtoearth.

WeatMCL,manageexactquantityofwater,thelossesduetoevaporationandstrataseepage,theconsumptionstatisticsandfinallythesurpluswaterquantity.Theexcesswater hasbeen redirected to artificial rechargepits created just below thesurfacelevel.ExcessquantityofminewaterisusedforDrinkingpurposes,Agriculturalpurposesandforgroundrecharge.DuringthisFY2016-17,49490604.4lakhm3/yrofwaterismadeavailableforgroundrecharge.

• Robust technique- Transforming our de-coaled mine voids in to huge waterharvestingstructures:

Thewaterwhichisaccumulatedinsidebothopencastandundergroundminesfromvarious sources like rainwater, water from OB dumps, coal stockyards, and othercatchmentareasarepumpedintothede-coaledvoidsandusethesamefordomesticandindustrialuseandinthelongtermitensuresrechargeoftheundergroundwatertable.

SupplyofwaterfromDeulberaUGMinetoTalcherMunicipalityPond

RechargeofKhudopalliVillagePondfromBundiaUGMinewater


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AIRQUALITYMANAGEMENT:

Emissionofdustandotherparticulatematter isaconsequenceofthenatureofouroperationslikecuttingandloadingoperationsofcoal,loadingandunloadingoperationsofOBandcoal,coaltransportationonhaulroads,dozingoperationsatOBdumpingyards,andheavyvehiclesplyingonhaulroads.Besides, the intensityofminingactivities, thetypeofvehicles and equipment used, and the geological and geomorphologic setting add to themagnitude of emissions. The environmental factors such as temperature, rainfall andhumiditymayalsointerferetheintensityofdustemissionsanddepositions.Minesarenotstatic, and have continuously changing footprints with respect to haul road location anddistance, the size ofwaste rock and tailings sites, and have varying production andminedevelopmentrates.

Keepingallthisinmind,wealreadyhavewell-definedairqualitymanagementsysteminplace,whichincludesbothairqualitymonitoringandairpollutioncontrolmeasures.Weregularly trackthetotalparticulatematter (TPM),PM2.5,SOx,NOxandensurethat theydon’triseabovelimits.Besidesthis,wealsoadoptseveralmitigationmeasuresasasteptodealwiththecurrentemissionandalsoimplementchangesinpresentpracticestominimisedustreleaseinlongterm.

Airqualitymonitoring:

Wemonitorairqualityatourmonitoringlocationstwiceeverymonthtoassessthelevelofpollutionintheambientairoftheareaslocatedinandaroundourcoalminesandprojects.The monitoring locations have been decided with concerned Regional officer, SPCB andCMPDI,asubsidiaryofcoalIndia.Thisairqualitydatahelpsustodeterminetheefficacyofour air pollution mitigation measures. The data on air quality is available in our annualenvironmental monitoring report, submitted as per the Environment (Protection)AmendmentRules.RefertothetableonAirqualitydata-FY2016-17,forpertinentdetailsofairqualityparameters.

Airpollutioncontrolmeasures:

WeengageourselvestomitigatethedustemissionsatExtractionstagebymakingchangesinourconventionalminingmethodsandalsoattransportationstage.

Extractionstage:

Surfaceminers:

We have adopted surface miners technology way back in 1999 and this technology has helped us eliminate dust generation during several activities namely, drilling, blasting and crushing. This mining process indirectly reduces the generation of greenhouse gases. In our conventional methods, we completely changed to wet drilling and in addition that they have dust extractors. During FY 2016-17, we produced 91.8% of our coal (139.20 MT), using surface miners. In CHPs, we have misters and fixed Sprinklers even though our conventional coal production is negligible (8.29% only) to reduce dust generation significantly.


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Transportation stage:

From the mine to market philosophy in our sustainability approach, we adopted a eco-friendly mode of transporting coal (via railways) to our end users. During the FY 2016-17, we transported 73.8% of coal through rail mode and 26.72% by road. A single railway rake (3,800 Te) reduces the dust equivalent to plying of 240 trucks each carrying approx. 16 Te of coal. Rake loading facility and rail infrastructure being strengthened presently. The coal is dispatched through 22 sidings and 4MGRs. Average number of rakes per day is 35.3 rakes in Talcher Coal field and increased up to 30.9 rakes in Ib Valley Coalfields.

Inadditiontothese,separatecoaltransportationcorridorhasbeenconstructedinboththecoalfieldsavoidingresidentialarea,schoolsandotherareas.Lengthofdedicatedcoaltransportationcorridoris20.99kminTCFand17.03kminIBCF.

Apartfromtheeco-friendlytechnologicalchangesthatwehaveimplemented,wealso

putinsignificantefforttosuppresstheairbornedust.DuringFY2016-17,wedeployed80mobilewatertankers(capacity28KL)tocontrolthedustemissioninourminingareas.

Tosettlethedustgeneratedduringtransportation,outsideMCLareas,wesprinklewaterthroughmobilewatertankersof12KLcapacityonacontractualbasis.Wehavealsoinstalledfixedsprinklersinallourrailwaysidingsforthesamepurpose.Wehavedeployedthreeheavydutytruckmounted,vacuum-operatedmechanicalroadsweeperstosweepandcollectanycoalspillageanddustoverpuccacoaltransportationroadsatTalcherCoalfield.

Nowweareworkingtowardsprocurementofmistblowercumroadfoggeronhiringbasis,foralltheareas.Besidesallthesewecontinueoureffortsforstrengtheningtheblacktoppingofpermanent and semi-permanent roads to avoiddustwhen the trucksplyoverthem.

Constructionof6SILOsatallmajorOCPsofMCLarenowinthepipelinetoavoidmassivedustduringloading.TheprogressofSILOarrangementatBharatpursidingis99.4%andatLingarajSidingis85.88%.

FixedsprinklersatBelpaharCoalsiding MobilesprinklingfordustsuppressionatAnantaOCP


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Noiseandgroundvibrationcontrolmeasures:

We take adequate measures to curb noise and ground vibration including variousengineering,administrativecontrolsandmanagementprocedures.Allworkersinhighnoisegeneratingsitesareprovidedwithpersonalprotectiveequipment’s(PEE)likeearmuffsandearplugs.WealsotrainworkerstoproperlyusePPEonsitetoreducetheirexposuretonoisepollution.AllHEMMshavebeenprovidedwithadequatenoiselevelreductiontechnologies.Non-electricdetonatorsareusedwhereevernecessaryforblastingresultinginlessnoiseandgroundvibration.Controlledblastingsystemisadoptedtoreducenoiseandgroundvibration.

CoalQuality-CleanEnergy

Theproductqualitydefineshowefficientlyandeffectivelyitservestheneedwithlessundesirable environmental impact throughout its life cycle. To ensure our business tosucceed,it’sessentialforustosupplydifferentpowerhousesincludingourothercustomerswithhighqualitycoalwithout impuritiessuchas rockandslate.Weknowthatcustomerswon’tbuyfromusiftheyreceiveaninferiorqualityofproduct,sowetakegreatcaretoretainandevenimprovethegradeofthecoalwesupply,throughseveralinitiatives.

Thesamplingandanalysisofcoalisconductedinaccordancewiththeguidelinesofthefuelsupplyagreement(FSA)beforewedespatchthecoaltoourcustomers.Wemeasurethegrosscalorificvalue(GCV)andtheUHFelementofourcoalinourlaboratorieswiththehelpofAutoProximateAnalysersandAutoBombCalorimeters.Theseequipment’senableustodeterminethegradeofcoalwithintwohours.

We have ten coal analysis laboratories in different areas of our coalfields. In theJagannath, Bharatpur, kaniha and Ib Valley Area’s the coal analysis laboratory have beenconferred with the grant of NABL accreditation certificate with the dates as mentionedagainsttheirnames:Ibvalley(24.05.2015),Bharatpur(12.04.2016),Jagannath(30.05.2016),Kaniha(18.03.2017).

Weconservethebondbetweenthegreencoverandthesuppressionofdustbydevelopinggreenbeltsbetweenresidentialareasandourmines.

Minewaterisprovidedtothis150haareaforgreengrowth.

PlantationatRaniPark,Deulbera


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Necessarystepshavebeen initiatedby theauthority forobtainingaccreditationofcoalanalysislaboratoriesforremainingfiveareas.

Thesampleswithrespecttoseam,stock,siding&tippersampleswereassessedbyadoptingstringentsamplingbyCCO,KolkataandbytheteamofIITGuwahatianddeclaredasappropriategradefortheperiod2017-18inrespectofalltheminesofMCL.

Forbettertransparency,CIMFRandQualityCouncilofIndiahavebeendeployedasindependentthirdpartysamplingagenciestocarryouttheanalysisactivitiesofcoalsuppliedto IPP,Powerutility consumersandnon- regulated sectors likeCPP, spongerandcementsectoretc.

Awarenesscampaign“QUALITYFORTNIGHT”hasbeenorganisedbyQCdepartmentfrom14.02.17to28.02.17inallareas.Allareapersonnelhadwholeheartedlyparticipated.Withalltheseefforts,wemanagetoretainourpositionintheIndiancoalMarketandwedonotparticipateinsaleofbannedanddisputedproducts.

Wedesignedourinitiativestoprovidehighqualitycoalinsustainablemannerfromtheminetomarket.Thedifferentinitiativesare

• AtExtractionPhase:

The gradual transition of extracting coal from traditional opencast miningmethodstosurfaceminershelpustoproducecoalwithoutrejectsfromthecoalseam.DuringFY2016-17,approximately92%outof the total coalproductionhavebeenachievedusingsurfaceminers.SurfaceMinershavebeendeployedinalltheminesofMCL.

• ProcessingPhase:

Coalbeneficiationplaysveryimportantroleinthemininglifecycle.Wesupplycoaltoourcustomersbypropersizingto100mmatCHPsandFBs(feedbreaker).Wehave two major CHPs at Jagannath OCP (2 MTY) and Bharatpur OCP (3.5 MTY).Furthermore,weareputtingoureffortsforinstallationoffourcoalwasheriesnamely

TransportationofCoalthroughConveyoratJagannathOCP

LoadingofcoalintorakesatBelpaharOCP


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IB-Valleywashery(10MTY)atLakhanpur,Basundharawashery,JagannathwasheryandHingulawashery. Commissioningofwasheryprojects takes time to come intoforceastheprocessesoflandacquisition,environmentaswellasforestclearancestakeconsiderabletime.

StatusofthetwowasheriesunderPhase-I[BOM(Build-Operate-Maintain)Concept]areasfollows:

IB-valleywashery Basundharawashery

Location Lakhanpur BasundharaConcept BOM BOM

Capacity(MTY) 10 10LetterofIntimation

Issued to the Lowest bidder-M/sGlobal coal&MiningPvt.Limitedon12.09.2016afterapprovalfromMCLboard

Issued to the lowest bidder in may2014.

Environmentalclearance

ToRwasissuedbyMoEFonJune’15.EACmeetingwas held on 31.01.2017and minutes wereuploaded on MOEF&CC website on 14.02.17recommendingECfortheproject.ECisyettobereceived.

ToR was issued by MoEF inSeptember 2014. Amended TORreceivedon29.02.2016.EACmeetingwas held on 28-02-2017. As per theminutes ofmeeting received on 10-03-2017, it was decided not torecommendtheproposal,buttowaitfor the firm action plan to besubmitted addressing therequirements contained in Mineclosure status report. This issue isbeing taken up by the EnvironmentDept.,MCL.

FACmeeting Noforestlandisincludedattheselectedlocation. FACmeeting for stage-1 FCof 29.41HaofForestlandwasheldon28-02-17.Minutesofmeetinguploadedon17-03-17FACrecommendedthat,thelayoutofproposedwashery shall bechangedtotheextentthatthepatchofforesycomingunderproposedlandfor diversion could be avoided. Thisissue is being taken up by theEnvironmentDept.,MCL

Acquisition&Possession

- Administrative approval of 6.82 Hatenancy land received fromMoC on18-01-2016 and acquisition isexpected by June-17. Acquisition &Possession of 0.85HaofGovt.Non-ForestlandisexpectedbyJune’17.

LetterofAward Can be issued only after EC & other statutoryclearance.

Can be issued only after EC, FC andpossession of land (Forest land,Tenancy land & Govt. Non-forestland)


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Status of the two washeries under Phase-I [BOO (Build-Own-Operate Concept) are as follows:

Initially, all the Washeries were under BOM concept. But in the meanwhile, directives received from CIL regarding the decision of MoC that all the new proposed washeries, whose tender was to be finalised, should be built on BOO concept was placed beforeMCLBoardinitsmeetingheldon28-02-2016.Whilenotingthechangeofconcept,MCLboardnotedthatitisbeingdoneattheCIL/ministry.

Under BOO concept, washery is to be set up by BOO operator and the land andoperatingcostforthewasherywillbegivenbyMCL.

HingulaWashery Jagannathwashery

Location Hingula JagannathConcept BOO BOO

Capacity(MTY) 10 10Environmental

clearanceToR was issued by MoEF onJanuary’14.ECwasgrantedon30-10-2015onBOMConcept.

ToR was issued by MoEF on 13-08-15.AmendmentToRdated01-02-16inrespectof BACKFILLED AREA AND Green Belt hasbeenreceived.ECwasgrantedon31-09-16on BOM Concept. As there is need ofmodification in some of the specificconditions ,EACmeeting held on 27-12-16and the committee recommendedamendments in theEC Dt. 31-08-2016, asrequestedbyprojectproponent.AmendedECisstillwaited.

ConsenttoEstablish

It was issued by SPCB on 29-12-2015and received on 30-12-2015. It wasgrantedonBOMConcept.

It was issued by SPCB on 22-10-16 andreceivedon30-11-2016. ItwasgrantedonBOMConcept.

Letterofaward ItwasissuedtoM/s.MIELcancelledon03-11-2016due tonon-submissionofPFS within the stipulated period andBankGuaranteeagainstBidsecurityofM/s.MIELhasalreadyencashedon05-11-2016.

Tenderwasfloatedine-tendermodeon1-06-2015was cancelled due to rejection ofofferofL-1Bidderduetonon-submissionofrequisite confirmatory documents. The L-1bidderhas filledawritpetitionchallengingthe cancellation of tender at Hon’ble Highcourt, Cuttack, Orissa. The case is stillpendingforhearing.

StatusofBiddocument

CMPDIsubmittedtheDraftBiddocumentsforsettingupofwasheryunderBOOconceptinFeb2017andcommentsweresentbyMCLfollowedwithadetailed

deliberationontheBiddocumenton20-03-2017.

• TransportationPhase:

Our QC department constantly monitors the coal quality across rakes, bytaking random samples from seam, stock, siding and tippers, before the despatchphasebegins.FrequentinspectionsofWeighBridgesandLaboratoriesarebeingdoneregularly. For consumers like Hindalco, Bhushan & steel power Ltd, Vedant, weconduct jointsamplingwithCIMFRatall loadingpointsof theconcernedarea.Werespectourcustomer’ssuggestionsinrespectofcoalquality/sizing&otherfacilities.


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The representative of customers present at the time of loading can give theirsuggestions.Theboundpagedregistershasbeenkeptinallsidings/loadingpoints.

Weregrettoinformthatthenumberofqualitybasedcomplaintsreceivedthisyearare55against44inthepreviousyear.

• Combustionphase:

This is the phasewhere the power is generated.MCL ismaking efforts toprovidewashedcoalforgeneratingpowerinasustainableway.OncewasheriesarestartedMCLcandispatchmorethan70%ofthewashedcoaltothedemandingpowersector. As thewashed coal increases the efficiency of the boiler and leads to lessconsumptionofcoalpertonneforachievingthedesiredheatvaluetherebymakingitmoreefficientandreducingthecostofproduction.

LANDRECLAMATION: Thelifespanofthecoalmineswillbelimitedduetothefinitenatureoftheresourcebeingextracted.AftertheresourcebeingextracteditisourresponsibilityinMCLtoreturntheminedlandtoproductivitythroughreclamation.WeatMCL,employtwo-stepprocessforlandreclamation.

1. Technicalreclamation:

Herewebringback theexcavated landback to itsoriginal state,bybackfilling theoverburden(OB)materialinthede-coaledvoids.Thisprocesswillbeinactionalongwithmining. We preserve the top soil separately at the beginning ofmining andrestorethequalityofsoiltotheirpre-mininglevelatthisstage.

2. Biologicalreclamation:

Inthisstage,werevivethefilled-uplandbyafforestation.Itisimpossibletoreplenishthesoilmineralsoncemineout,however;weatMCL,restorethemined-outlandbyself-sustaininggreencover.

TechnicalreclamationatBhubaneswariOCP

ReclamationsiteatBharatpurOCP


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OurCILsubsidiary,CMPDI,hasbeendelegatedtheworkoflandreclamationandtheyregularlymonitorprogress,throughremotesensing.CMPDIalsoengageswiththeNationalRemoteSensingCentre inHyderabad, toobtain satellitedata for theareasof vegetation,backfilling,activeminingtoobtainrelevantinformation.Theycreatelandreclamationmapsthatareusefulforassessingtheprogressivereclamationstatusofourmined-outland.CMPDIalso prepares an exclusive annual report on the Land Reclamation progress for bothcategoriesofmines.Formorespecificdetailsonthispleasereferthecasestudy“Rightingthepast”

Plantation

Inouryearsofminingexcellence,weidentifiedplantingvegetationisthesoleremedyformostourenvironmentaldegradationissues.Weadoptthismeasureforbiological landreclamation,carbonsequestration,preventionofdustandforcontrollingnoiseetc.,sinceourinceptionwehaveplantedmixed indigenous species over external dumps andback filledinternaldumpsafteradequatetechnicalreclamation,aswellasvacantpatchesofotherlandand avenues, in themines. Plantations are also done in residential townships and officepremisesespeciallywithfruitbearing,floweringandmedicinalplantsandtrees.

Harvestingthejoy:Wehaveplanted52.19lakhsofsaplingssinceinception.weplanted21.43lakhs,29.93lakhsand0.83lakhsaplingsatTCF,IbVCFandHQ.ForthisFY,wehaveplanted1.38lakhssaplings.

VANMAHOTSAV-Afestivaloflife:VanmahotsavisatreeplantingdrivebeganinJuly1947inIndiaasacrusadetosavemotherearth.WeatMCLcelebratingiteveryyearinthefirstweekofJuly.InthisFY,wecelebrated“VANMAHOTSAVday”on18thJuly,2016.weconductedrallyatHQandarea leveltocreateawarenessamongthepeoplefortheconservation of forestsandplanting ofnew trees.Wehaveplanted saplingsof diversespecieswithenergeticparticipationofschoolkids,localsandemployees.Wedistributedmorethan1000fruitbearingandmedicinalsaplingstoschoolsandvillagesatfreeofcost.


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Rightingthepastwrongs

Accountability to the environment and land forms is the foundation of our miningapproach.Weproactivelyparticipate inenvironmentprotectionactivitiesnot justtomeetthestatutebutalsobecauseweconsideritourresponsibility.Inourpledgetorestorethebarrenquarries into lushgreeneries,wehaveprogressedwitha systematic and technicalapproachforouropencastmines.Alongwiththegradualreclamation,wekeepacloseeyeonthewholeprocessofevolutionoftheinfertiletoabundant.

Areaofbiological reclamation (plantation)has increased from14.59Km2 (Yr.2015) to14.61Km2 (Yr. 2016) whereas area of technical reclamation (area under backfilling) hasincreasedfrom18.12Km2(Yr.2015)to19.24Km2(Yr.2016)inMCL.Thisincreaseof1.15Km2intotalareaofplantationandareaunderbackfillingistheresultoftheeffortsoftheMCLtakenuptowardsenvironmentalprotection.

Out of 11 projects of MCL,Ananta OCP ranks on top forlandreclamation(81.55%).

DuringFY2016-17,Landrestoration/ reclamation monitoring of 11opencastcoalminesintheIbvalleycoalfield and the Talcher Coalfieldproducing5millioncu.m.andmore(Coal+OB) per year was done.Details of Land reclamation aredepicted in the pie chart “landreclamation status-FY 2016-17 OCmines(Capacity>5Mm3/year).

LandreclamationstatusOCmines(Capacity>5Mm3/year)

Landreclamationstatusin(Sq.km)It is evident from the analysisdepictedinthelandreclamationstatus figure, that area underland reclamation has beenincreasingfromlastthreeyears.Theareaunderlandreclamationhas increased from 32.70 Km2(Yr.2015) to 33.85 Km2 (Yr.2016).


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Overburden(OB)Management:

OverburdenincludesthesoilandrockthatisremovedtogainaccesstothecoaldepositsItisusuallypiledonthesurfaceatminesiteswhereitwillnotimpedefurtherexpansionoftheminingoperation–moving largevolumesofmaterial isexpensive.As theoverburdengenerallyhasalowpotentialforenvironmentalcontamination,soweatMCLfillitbackintotheexcavatedminevoidswhichservesthepurposeoflandscapecontouringandrevegetationduringmineclosure.ThequantityofcoalweevacuateatMCL, ismuchmorethantheOBmaterial generated.DuringFY, the coalproductionwas139.21MTandOBgeneratedwas123.34Mm3andbackfilledintheminevoid.Hence,weareabletobackfillonlyapprox.50-60% of themined-out area up to original ground level. The remaining excavated area ispartiallyfilledandfurtherdevelopedaswaterharvestingplaces.Postbackfillingoperations,wecarryoutlandreclamationwhichimprovesthemoisturecontent,bulkdensity,pH,andoverallnutrientcontentofthesoilandfavoursoilcompaction.

ExternalOBplantationatLingarajOCP

OBDumpmanagementatLakhanpurOCP


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MINECLOSUREACTIVITIES:

MinistryofCoal,Govt.ofIndiahasformulatedMineClosurePlanGuidelinesin2009andlatermodifieditintheyear2013whichareincorporatedinallapprovedMiningplan.Wenotonlyfollowtheguidelinesinletterandspiritbutalsomadeitourintegralpartofminingoperation.OurcorestrategyistoprogressthroughprogressiveMineClosurePlanandwind-upoperationthroughFinalMineClosurephase.TheYardstick forclaimofreimbursementfromEscrowAccountisasdescribedbelow.

TheYardstickforcalculationof80%offunddepositedinescrowaccount(includinginterest)foropencastmines.

S.no MajorClosureActivities %ofTotalClosureCost

1. DismantlingofStructures ServiceBuildings 0.2

ResidentialBuildings, 2.67IndustrialStructures 0.3

2. Permanentfencingofminevoid&otherdangerousareas 1.5

3. Gradingofhighwallslopes 1.774 OBDumpReclamation

Handling/DozingofOBdump&backfilling 88.66Technical&Bio-reclamationincludingplantation 0.4

5 Landscaping Landscapingoftheopenspaceinleaseholdarea 0.3

6 Plantationoverclearedareaafterdismantling. 0.5Plantation-quarryarea&safetyzone 0.2PlantationovertheexternalOBdump. 0.02

7 PostclosureenvironmentMonitoring/testingofparametersfor3years.

Airquality 0.22Waterquality 0.2

8 Entrepreneurshipdevelopment 0.269 Miscellaneous&otherMitigationmeasures 210 ManpowerCostforsupervision 0.8 Total 100

ForCarrying-outofMineclosureactivitiesaspertheguidelinesofMinistryofCoal,

Govt. of India, certain Amount of fund is deposited in the Escrow Account of all mines.Presentlyall25MinesofMCLhaveEscrowAccountswithUnionBankof India.Duringthereportingperiodof2016-17, thebalanceof fund inEscrowAccountwasRs.696.75Croresincludinginterest.


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MeetC.Jayadev:ExpertiseinObtainingEnvironmentalClearance.

C.Jayadev,ChiefManager,Environment.

In a conversation with Mr.C. Jayadev, Chief Manager(Envt.), he talks about his

experienceworkinginEnvironmentandForestDepartmentandhighlightsthecommendableefforts made by department towards improving the environment prospects along withimprovingtheproductivityofthecompany,byguidingandsteeringittowardsexcellence.

AtCIL,priortobeinginEnvironment&ForestDepartment,hestartedhiscareerat

SECLminesasJuniorexecutivetrainee(Mining)in1989aftercompletinghisBachelor’sdegreeinMiningEngineerfromK.S.MOsmaniaUniversity.HeiswithourMCLfamilysinceinceptionandcontinuinghisresponsibilitiesfaithfullyaschiefManager(Envt).Hesays“miningislikedescendingintodarkforenlightenmentofnation”.Inhisopinion,miningshouldpairupwithsustainability-whichmadehimtotakeupEnvironmentalresponsibilitieswaybackin1997.Hestoodasabackboneforourenvironmentdepartmentwithachievementof33EC’sinhis27yearsoflongjourneyatCIL.MCLaccordedhimwiththerecognitionof“SincereandHonestperformance”duringVigilanceAwarenessweek. Hebelievesin“BalancingCareerandCompanyloyalty”byaligningprofessionalcareergrowth with company. He appreciates the team work of environment department inidentifyinglinksbetweentheirownprofessionalgoalsandthecompanygoals.Hismessageto young generation- “Work wisely with all efforts to achieve goal and also to avoidunrequiredrisksthatmightcomebacktobiteyou”.

ChallengeshedealtregardingobtainingEC,inhisownwords When all the projects in both thecoalfields were declared as criticallypolluted&alsoimpositionofmoratoriuminJan-2010,mealongwithallprojectofficers(Envt.)workedasgroupandcompliedno.ofofficememorandums issuedbytheMoEFF&CC.Iwouldliketoquote“Thespeedofthebossisthespeedoftheteam”-LeeLacocca.


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Talentretention-Humanintellectualcapital:

We at MCL, maintain human capital effectively and efficiently to face the dynamicchallengesonthefrontofknowledge,technologyandchangingtrendsinglobalscenariobyEmpathizing,Communicating,Explaining,EncouragingandRecognising.

We at MCL, deal with our employee’s negative emotions with empathy and providefrequent,truthfulanddirectcommunicationsforsolicitideasandopinions.Wealsoexplainour employees the organisational and individual goalswhile encouraging and recognizingtheirinitiativeforachievingorganisationalexcellenceandsustainability.

ManpowerstrengthofMCL,FY2016-17is22036comprising1828Executivesand20208Non-executives.Bywayoffreshrecruitment,transfer,reinstatementetc.,832personsjoinedMCLand1193wereseparatedbywayofretirement,transfer,resignations,deathetc.Weregrettoinformthatourmanpowerstrengthwithrespecttopreviousreportingyear(22397no’s.) was reduced. We at MCL, maintain harmonious relation by three tier IR systemmechanism i.e. at Unit level, Area level and Company level for achieving higher growth.Depending upon the issue and delegation power, the grievances/demands of employeeswereresolvedatdifferentlevelsofIRsystem.TherewasonlyonestrikeduringthereportingyearbyFourCentralTradeUnionsofCoalIndiaonvariousissueson2ndSep,2016.

0.00 0.01 0.02 0.03 0.04 0.05 0.06

2014-15

2015-16

2016-17

Rateofturnovers RateofHires

TalentRetentionStrategy

Empathize Communicate Explain Encourage Recognize

TalentAcquisitionandAttritionProfileTrend The reason behind difference inmanpower between the present andprevious reportingyear is onaccountofprovidingemploymenttothePAPsas per the R&R policies in vogue &recruitmentthroughcampusselectionby CIL. The remote location of oursites,andalsotheyoungmasswhoareinclinedtowardsITandtheavailabilityof opportunities in themetropolitansaresomeoftheotherreasons.


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Equalopportunities:

WeatMCL,maintainequalityamongalltheemployeesbynotdiscriminatingonthebasisofrace,religion,age,gender,basicsalaryorforanycharacteristicorclassprotectedbylaw.WeadopttheNationalCoalWageAgreement(NCWA)fornon-executiveemployeesandspecified pay scales for executive employees to promote equal opportunities as per thenationalstandards.Theratioofbasicsalaryformentowomenis1:1

• Weevencareforthecareerdevelopmentandgrowthopportunitiesofwomenandmenequally.WomenatMCL,haveaccesstotheformWIPS(WomeninPublicSector)which is good platform for them, to beinvolved in when it come to variousdevelopmentalactivitiesforthesociety.

• SpecialbenefitsforWomenEmployee:

- Six months maternity leave duringchildbirth.

- Twoyearsofchildcareleaveforwomenwithminorchildren.

Employeebenefits:

Benefitscontributetoattract,retainandtomotivate the employees. The variety ofpossiblebenefitshelpsemployerstailortheircompensation to the kinds of need. Weprovide benefits as per the EmployeeCompensation Act (1920), for bothpermanentandcontractualEmployees.

Some standard benefits exclusively forpermanent employees are Leave travelallowance, Group Personal AccidentInsurance Scheme, Settlement Allowance,Retired Executive Medical Benefit Scheme,Compensation for the dependents whopassed away in the mines. We never saygoodbye to our employees even after theyretirefromtheirservices,therearearangeofcontribution plans (Provident Fund andPensionFund)thatcontinuetosupporttheseemployeesfinancially.

ForpermanentEmployees:

• Lifeinsurance

• Healthcare

• Disability/Invaliditycoverage

• ParentalLeave

• Retirementprovision

• Stockownership

ForcontractualEmployees:

• Lifeinsurance

• Healthcare

• Disability/Invaliditycoverage

• STAN

DARD

BEN

EFITSFO

REM

PLOYEESATMCL

FemaleworkforcestatisticsDuringFY2016-17,thepermanentandcontractualfemaleworkforceincreasedabout3.08%and50%by

previousreportingyear.


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Wehaverecordeda100%returntoworkrateandretentionratepostavailingmaternityleave.WeprotecttheinterestsofwomenandhaveanAnti-SexualHarassmentofwomenpolicyinlinewiththesexualHarassmentofwomenatworkplace(Prevention,Prohibition&Redressal) Act, 2013, that covers very employee (permanent contractual temporary andtrainees). PermanentEmployees:Region-Wise

Contractual Employees: Region-wise

39%

57%

4%

IBValleyCoalfiled

TalcherCoalfield

CorporateOffice

55% 42%

3%

IBValleyCoalfiled

TalcherCoalfield

CorporateOffice

PermanentEmployees:Genderwise ContractualEmployees:Genderwise

CategoryWise

EmployeeDiversity


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TrainingandPerformanceManagement:

Weinvestinouremployeetrainingtosupportsuccessionplanning,increaseemployeevalue,reduceattritionrates,enhanceoperationalefficiencyandexceedindustrystandards.Wenurturethenewlyrecruitedyounggenerationwithtrainingsinvariousareasrelevantforthe coal industry before they perform in their responsible positions at various externalorganizationslikeIICM,IIMs,IITs,NITsandotherrenewedtrainingsinIndiaandAbroad.

Extending our handholding supporttotheexecutivesforthemtoencourageas competent mangers, we conduct

regularreviewsoftheirperformance.Asappraisaloffersavaluableopportunitytofocusonworkactivitiesandgoals,toidentifyandcorrectexistingproblems,andtoencouragebetterfutureperformancewegiveperformancereviewsforallthepermanentemployees,exceptapprentices(asdeployedundertheApprenticesAct).

1841 1450 1320

50528250

6863

0

2000

4000

6000

8000

10000

12000

2014-15 2015-16 2016-17

Executives Non-Executives

EstablishedtrainingcentersatMCL-ManagementTrainingInstitute(MTI),Burla.-BelpaharTrainingInstitute(BTI),Belpahar.-MiningEngineering&ExcavationTrainingInstitute(MEETI),Talcher.-GroupVocationalTrainingCentersatLakhanpur,Talcher,Basundhara,Jagannath,OrientAreas.

PerformanceAppraisal

Executives-Progress(twiceinayear)-Approvalbyreportingauthorityannually

Non-executives-progress(Annually)

Performancereviewofourexecutivesisdonethrough

onlineperformanceManagementSystem

(PMS)

EmployeeTrainingTrendWe regret to inform that theemployeetrainingtrendisdeclinedincomparison with previous year. Thereason might be the more rate ofturnovers this reporting year.WhichwasdiscussedunderthefigureTalentAcquisition and Attrition ProfileTrend.To be noted the values of Employeetraining trendwereerroneous in theprevioustworeportingyears.AndwerectifiedtheminthisFY2016-17.

Experienceduetoexposureismoreeffective.


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TalentDevelopmentInitiatives-BalanceinEmployeesLifeCycle:

Simplyacquiringtalent isnotenough,andweunderstandthisatMCL.Wetakeupdifferent initiatives throughout the employee’s “life cycle” – Selection, Development,SuccessionandPerformanceManagementtonurturethetalentsoastofuelthegrowthOFthe company aswell as the individual.We focused on three HR initiatives to this effect,namelyMentor-MenteeScheme,TrainingSchemeforTrainees,MiningSirdarandImpartingTrainingunderApprentices,Act,1961.

Mentor-MenteeScheme:

InaccordancewiththeCILsschemeofMentor-Mentee,toensurehighretentionrateof new entrants and to develop a pool of trained & committee mentors, a key priorityorganizational area which will help in building sociological contact with them, MCL hasappointed 30 numbers of mentors from different discipline for 169 number of mentees(AssistantManagerE-3grade)forensuringtheirprofessionalgrowthanddevelopmentalongwithhighpotentialemployeesforassumingseniorleadershiproles.

MiningSirdarTraining:

This unique scheme targeted at providing an opportunity to PAPs and peoplebelongingtotheSC/STcategoryforenhancingtheirskillsensuringtheiremployability.Wetarget to train30PAPsorSC/STcandidates tobeeligible forMiningSirdarTrainee.ForFY2016-17, 18 candidates (i.e. 13 SC & 5 ST) has been selected for this training with thenecessaryapprovaloffundfromCSRandtrainingsessionswereheldinBTI,Lakhanpur.

ImpartingTrainingunderApprentices,Act,1961:(Amended2016)

The schemes like Post Graduate Practical Training (PGPT); Post Diploma PracticalTraining (PDPT) and apprentices training for one year provide exposure to practical andtechnicalskill training.FourPGPTshavebeendeployed inTCFand IBcoalfields.DuringFY2016-17,200no’sofPDPTshavebeenengagedinTalcherandOrientareasforaperiodof1year. And 182 number of ITI pass out of Odisha State have been engaged as apprenticetraineesinJagannath,Bharatpur,CWS(X)andTalcherareas.WeatMCL,alsoprovideHEMMtraining for land oustees to be posted in mines, SafetyManagement training, Computerawarenessprogrammeetc.,

HRVision2020:-A Central Task Force with 3dynamic Assistant Managers fromPersonnel, Finance &MMconstituted to take forward theGENXTconcept.-Discipline Task force of 17membersisinVogue

TrainingsessionsatMTI


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EmployeeHealthandSafetynet-ZeroAccidents,DeriveLoyaltyandQuality:

We at MCL, prevent inter-office violence and raise employee awareness of the

potentialdangerstheyfacebyhealthandsafetypracticesatheadquartersandarealevel(15OCminesand6UGmines).Violentactsandbehaviorsofemployeesandotherindividualswithintheworkplaceacauseforconcernbecausetheythreatenacompany’soverallwell-being.Hence,weaspiretotakeanactiveapproachineducatingworkersontheimportanceofpracticingsafehabitsinordertocreatekindofproductive,efficient,happyandinspiringworkplace. We have integrated Management System (IMS) accredited with OHSAS18001:2007- Occupational Health and Safety Management, ISO9001:2008-QualityManagementSystem,andISO14001:2004-EnvironemnetManagementSystem.

ZeroAccidents:

Weensurethatnoworkerisinjuredonthejob,asitcoststhecompanyinlostworkhours,lossinproductivity,increasedinsurancerates,workerscompensationpremiumsandpossiblelitigation.Weadheretomaintainsafetyaspectattheveryheartofouroperationstocaretheirwell-beingquitetangiblywithreducedinjuries.Weconductsafetyawarenessdrives and trainings to employees. During 2016-17, 7305 workmen & supervisors wereprovided trainingatGroupVocationalTrainingCentersagainst8576 inprevious reportingyear. To improve the skill of dumper operations, 32 dumper operators were impartedstimulatortrainingatNorthernCoalfieldsLimitedagainst30inpreviousyear.AnnualSafetyFortnightforthisreportingyearwasobservedbetween10/01/2017to23/01/2017.

Safetypledgebyemployeesduringsafetyfortnight.

MinersdaycelebrationatHQ


63

For newly recruited employees we conduct Initial Medical Examination(IME) and

PeriodicMedicalExamination(PME)ofsupervisorsareconductedfordetectingdefectsanddiseases so that they can be treated in time. Byimplementing these our employees respond byworking harder, showingmore pride in their jobsandremainloyal. Healthcareservices:

Quality:

Safety sign board at Orient Area Safeemployeesareloyal:We engender trust to all ouremployees by budgeting for safetyimprovementsandmaking itpart ofour operational plan. We care foremployee opinion in making safetydecisions-through reporting,committees, walk throughs andmeetings. All the employees areprovidedwithsafetygadgetssuchashelmets; safety foot wears etc.,During FY 2016-17, 9557 pairs ofminingshoes,971pairsgumboots&6931nos.ofhelmetswereallocated.We even provide earmuffs and earplugs to workers in high noisegeneratingsites.

Dispensaries(14),AreaHospitals(5),CentralHospital(5)

-AmbulancesincludingTraumacareambulancesandMobileMedicalVans.

-Totalthereare104Doctorsandspecialistsand241Paramedics.

SafetysignBoardatBhubaneswariOCP

SafetyisthepriorityatMCL,whichfirstturnoutshighqualityofproduct.Wehavesafeworkingplaceforemployees,whichtendstobemoreefficientone,freeofdebrisandtangleof cords. We use safe technologies like HEMMs with adequate noise level and vibrationreductiontechnologies,blastfreetechnologies:surfaceminersandripperdozer,introductionof SDLs & LDHs for replacing manual loading of coal, installation of environmental tele-monitoringsysteminundergroundmines,Procurementofrealtimeslopemonitoringradarsand3DLaserScannerforsurveyworkinprocess,manridingsystemoperatingatNandiraUGmine. This footprint leads our employeeswith reduced distractions and truly focus on thequalityofwhattheydo.


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SafetyStatistics: Despiteallmeasures,weregrettoinformthatsixfatalitiesandeightseriousinjurieswerefacedthisreportingyearagainsttwofatalitiesandfourseriousinjuriespreviousyear.SpecialsafetymeetingwithAreasafetyofficersandGVTOstostrengthensafetytrainingsofbothdepartmentalandcontractualworkershavealsobeenconducted.

Apart from these fatalities, our initiativeshavehadanotablepositive influence ineliminating occupational disease rates and Lost day rates of permanent employees andindependentcontractors.

AtMCL, we have active rescue services team comprising of well-equippedMinesRescueStationatOrientArea,IBvalleycoalfieldandRRRT.During2016-17ourrescueteamsmanagedtocontrol23numberofemergenciesnotrelatedtoanyminingactivitybutarisinginnearby society/ township.Our 12 staffmembers and177 rescue trainedpersonswereimpartedinitialandrefreshertraininginRescueandRecoveryoperationatMRS,OrientAreaandRRRT,TalcherArea.WeevenprovidedtrainingandemergencysupporttoprivateU/GminesGarepalama IV/4 (M/sHindalco Industries Limited)RaigarhRegion,M/sACB IndiaLimited,CoalwasheryofkanikaSiding.

0 2 4 6 8

Rateofinjury

OccupationalDiseaseRate

LostdatRate

AbsenteeRate

2014-15 2015-16 2016-17

We witnessed fatalities atBhartapur OCP, Samleswari OCP,KanihaOCPandNandiracolliery.AndseriousinjuriesatOrientCollierymineno. 1 &2, Lingaraj OCP, Belpahar,AnataOCP,BalramOCP,OrientMineno.4.

During investigation it wasrevealedthatsomeinjuriesweredueto negligence. We have takennecessary disciplinary actions onthosewhowerefoundguilty.

SafetyTrends–permanentemployees

SafetyTrends–IndependentContractors

TrendofAccidents


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Employeewelfareandwellness:

Welfarefacilitiesenabletheemployeestolivearicherandmoresatisfactorylife.Aswediscussedearlier inHRmanagementpart,asour locationsare remote itmayhamper theanxietyandzealoftheemployeestowork.Keepingthisintoaccountweprovideallnecessaryfacilitiestotheminthevicinityofouroperations.Wehaveestablishedtownshipstoresidealongwithschools,shoppingcomplexes,hospitals,aplaygroundforchildren,banks,ATMs,temples,Gyms,communitycenters,messandsoon.Weevenprovideguesthousesfornewlyrecruitedemployeeswithallnecessaryfacilities likeTV,Fridge,coolersetc.Ourtownshipshave badminton courts, tennis courts and golf courses for our employees to use, whichpromotesthespiritofsportsmanshipandteamworkaswell.

Regular recreational activities are beingconductedatHQandArealeveltocreateastressfreeworkingenvironmentforouremployees.Weconductvariousinterareatournamentsforallourexecutiveand non-executive employees. Our employees alsoparticipate invariousparentcompanytournamentsbeingorganizedatdifferentsubsidiaries.Duringtheyear2016-17,weorganizedCoalIndiaIntercompanyChesstournament&CoalIndiaIntercompanyTableTennis. A run for excellence was organized on theoccasion of Coal India Foundation day & MCLFoundation day for veterans, Gents, Ladies andChildrenatMCLHQ.OnaccountofUtkalDiwasGolftournament, Cultural programme and other socioculturalactivitieswereorganizedfrom1stAprilto3rdApril,2016. Weencourageallourparticipantsandwinnersbyawardingwithprizes.

We believe that Educationdevelops in us a perspective oflooking at lifewith confidence. Atour premises, we have 9functioning DAV Public Schools.During FY 2016-17, We extendedour financial hands withRs.1,42,800/- for bettereducationalfacilitiestothe17no’sof privately managed schoolsrunning in and around ouroperations including NKMahavidyalaya, Talcher. We alsosanctioned Rs.2758.36 Lakhs forDAVPublicschoolsinourpremises.

Shri.A.K.Jha,duringGolftournament.

CulturalprogramduringourFoundationdaycelebrations.


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During2016-17,asperCILScholarshipschemeavalueofRs.19,30,860wasprovidedto 1112 no’s ofmeritorious students in our employeewards.We also provided financialassistanceofRs.34,39,770wasprovidedto188no’sofemployeewardsinformsoftuitionfeesandhostelrentfortechnicalandMedicaleducation.

Resolvingemployeeandstakeholderissues:

Ourworkplaceisfuelledwithsomanyconcurrentagendasthatweneverknowwhichonemaybeaffectedwhenweresolveconflictsolelytobenefitandadvanceourown.Weseizethecorrectopportunitytodealwiththeconflictbeforehealthytensionturnsintooverlydisruptivechaos.Weconductjointmeetingswithunionrepresentativesandemployeesbythoroughly understanding the issue and providing solutions which result in healthycompetition, process improvements & innovations. For the grievances of employeesbelonging to scheduled caste Scheduled Tribe Employees Association (CISTEA ) held in aparticularareaorHQ.Therewillalwaysbechangeintheneedsandissuesofouremployees,soweregularlymonitorourgrievanceredressalsystem.MCLalsohasagrievanceredressalcelltoredressthegrievanceofemployeesandotherstakeholdersofthecompanywhichalsoincludesfarmers.Thiscellconsistsofsix-memberteamchairedbyTStoCMD,TStoD(P)asSecretary,TStoD(T/P&P)asmemberTStoD(T/Op)asmember,DyGM(Vig)asmemberandPRO as Nodal Officer. There is a “Samadhan Cell” at CIL’s Corporate Office in Kolkata.StakeholdersandemployeescanlodgetheirgrievancesattheSamadhanCell.Thegrievanceslodgedwillbeacknowledgedandredressedwithin30days.

Participatorymanagement:

WemotivateEmployeestoparticipateinthedecisionsofthecompanywhichmakesthemfeel liketheyareapartofateamwithacommongoal,andfindtheirsenseofself-esteemandcreativefulfilmentheightened.OurfourrecognizedtradeunionsatMCL,havealways strive to strengthen the good vibes within the industry. These trade unions arecoveredunderthecollectivebargainingagreementandalsotakepartinmanagementareaslike safety, welfare and committees required under Mines Act and rules, through theirrepresentatives. During FY 2016-17, 20208 employees (91.7%), were covered under thiscollectivebargainingagreement.

We equally involve all our employees in decision making for future initiatives toprocesstheworkinlesstime.Wehavenotasyetmadeeffortstoassessouroperationsandsuppliers,toensurethatthecollectivebargainingrightofourworkersarenotviolated.Thisremainsonouragenda. Infrastructuremaintenance: Rightinfrastructureisoneofthebasicresourcesweprovidetoouremployeesaroundoperationalarea.Asourcompanywasestablishedin1992,thereisaneedtorenovateourexistingquarters.Inviewofthis,weplannedforaphasewiserepairtobeaccomplishedby2018-19.Till31stMarch2017,6500QuarterswererepairedwithanexpenditureofRs.44.03crore.Andwe intend toprogresswith repairsof9408quarters in the comingPHASEandfollowedby3855quartersinthethirdPhase.TherepairsincludeallnecessaryelementsforsafeandcleanenvironmentlikeSTPs,roadmaintenance,walls,floorsandrooftopsetc.,


67

CorporateSocialResponsibility-Commitmentforabetterfuture:

Duetoourminingactivities,thereisaprofoundimpactontheenvironmentandpeoplelivingaroundthemineareas.Itisourresponsibilitytoworktowardsthebettermentofthesocietyandmakeabetterplacetolivein.Webelievein“dedicatingalifeofgoodnessandgenerositytowardsourfellowhumans,fillingourheartwithcontentmentandjoy”.Weneverforgetthepeoplewhosacrificedtheirmotherlandforourminingpurposes.WebuildCSRinto our company culture by making policies and proper strategic procedures forimplementationofwelfareprojectsforthecommunitiesforaddressingtheirissues.AgamutofwelfareactivitiesareundertakenasperScheduleVIIofcompaniesact.

113.97

34.28

148.25

61.3

112.97

86.95

199.92184.64

113.36

15.28

128.64

166.6

0

50

100

150

200

250

Budget Carryforward TotalBudget Expenditure

2014-15 2015-16 2016-17

Year Profitbeforetax(Crore.)

2013-14 5429.082014-15 5314.242015-16 6260.43Total 17003.75

AveragenetprofitbeforeTaxoflastthree

financialyears

5667.92

2%ofAverageProfits 113.36

FundforCSRisallocatedbasedon2%oftheaveragenetprofitofMCLforthethree-immediateprecedingfinancialyears.AsperourCSRpolicy:-80%oftheCSRbudgetedamountshouldbespentwithintheradiusof25kmofMCLcommandareasincludingthefourdistrictsofAngul,Sundargarh,Jharsuguda&Sambalpur.-20%ofthebudgetisspentinrestofOdisha.

CalculationofCSRbudgetfor2016-17

CSRinvestments:

During FY 2016-17,theCSRbudgetallocatedbyMCLwas INR113.36crores.The expenditure was INR166.6 crore and the majoractivitiesareinprogress.Thegraph depicts the CSRexpenditure for last threeyears.

The completed andongoing projects in fourdistricts are listed in tablefromPg-66to67.


68

RenovationofSoubhagyaSagaratTalcher

SaplingdistributiontotheBidyadharpurvillagersunderLingarajArea

Water supply duringsummer through Mobilewater tanker -TalcherCoalfields- 180 Villageseveryyear.

StrengtheningofBalingaTapadiaRoad(21Km)inSundergarhdistrict

GirlsHostel(150Bedded)atVSSUTBurla,Sambalpur


69

ONGOINGPROJECTS

• Constructionof138nos.AdditionalClassroombuildingsindifferentSchooltakenupthroughStateAuthorityinAngulDistrict-Rs.564.42Lakh

• Constructionof134nos.ofAnganwadiCentrestakenupthroughStateAuthorityinAngulDistrict-Rs.833.48Lakh

• FinancialAssistanceforconstruction100seatedSTGirlsHostel,Angul-Rs.82.5Lakh.

• Watersupplyschemefor35nos.villagesofTalcherCoalfields,Angul-Rs.56.89Cr.

• Depositfortheconstructionof7nos.PWSworksatTalcherBlock–Rs2.10Cr.

• ConstructionofFlyover(Overrailline)atGhatapada(Talcher)amountingRs.37Cr

• ConstructionofCommunityCentreatJharsugudaTown–Rs.7.20Cr.• WatersupplyschemeforBrajrajnagartown,JharsugudaDistrict–Rs.8.88Cr.• Settingupofa100beddedCardiacInstituteatJharsuguda-Rs.75.00Crore.• Rural Electrification works by up-gradation & additional of Transformers

includingaidedworksin44peripheralvillagesofLakhanpur&JharsugudaBlockofJharsugudaDistrict.-1stInstallment-Rs.1.48Cr.

• Stadium at Jharsuguda alongwith construction of boundarywall and 4 no’ssentrypost–Rs.14.76Cr.

• RDC approvedwork at Lakhanpur Block in Jharsuguda District with value ofRs.11.98Crore.

• Sports,electricity,communication,drinkingwater,education,diggingofponds,buildingforcommunityutility&Plantationetc.atKolabira,Laikerea,Kirmira&JharsugudablockofJharsugudaDistrict-Rs.20Cr.AndadditionalRs.6.72Crforongoingdevelopmentworksof4blocks.

ANGUL

JHAR

SUGUDA

SU

NDA

RGAR

H • ThreeNos.PipeWaterSupplySchemeforHemgiri,BarpaliandKuisiraVillageofHemgirblockinSundargarhDistrict–Rs.1.52Crore.

•DevelopmentWorksatSundargarhwithvalueofRs.8.50Crore.•RDCapprovedworkinSundargarhDistrict–Rs.16.29Crore.


70

ONGOINGPROJECTS

SAMBA

LPUR

• RopewayProjectatHirakudDam,Sambalpur–Rs.5.00Cr.•WaterSupplySchemeatBurla,Sambalpur–Rs.8.62Cr.• ConstructionofSportsComplexatBurla,Sambalpur–Rs.25.00Cr• FinancialassistancetoVSSMedicalCollege,Burla foraCTScanMachine–Rs.4.00Cr.

• SanskritKalakendraatSambalpurwithvalueofRs.3.37Crore• RDCapprovedworkinSambalpurDistrictwithvalueofRs.276.4Lakhexcludingkalakendra.

OTH

ERDISTR

ICTS

• ConstructionofMillenniumCityGateatCuttack–Rs70.34Lakh.• ConstructionofMultipurposeIndoorstadiumatJajpur–Rs10.22Cr.• ProvisionofCSRfundsforrenovationoftoytrainandrailwaytrackforoperationofthetoytraininNandankananZoologicalPark,Bhubaneswar-Rs.3.05Cr.

SOMEMAJORCOMPLETEDPROJECTS

• UjjaipurbyepassroadatSundargarhdistrictwithvalueofRs.17Cr.• Balinga-TapariaroadatSundargarhdistrictwithvalueofRs.28Cr.• Ruralwatersupplyfor19VillagesatTalcherdistrictwithavalueofRs.22Cr.• Empoweringruralwomenbyre-energizingSHGthroughsolarenergyprogram–inpartnershipwithKIITatNuapadawithvalueofRs.24Lac

• Soubhagyasagarwaterreservoir,AngulwithavalueofRs.3.5Cr.• ConstructionofCementConcreteroadinwardno3andWardno16,Angul-Rs3.10Cr.• DevelopmentofVillageroadBadasinghaBahaltoGobraHighSchool,Angul-Rs1.12Cr.• ResurfacingofBituminousRoadandConstofConcreteroadinDanaravillage,Angul–Rs1.88Cr.

• SupplyofwaterindifferentblocksofJharsuguda-Rs1.83Cr.• ConstructionofKalyanMandapatJharsugudaTowninJharsugudaDistrict–Rs0.98Cr.• ConstructionofNursingschoolandHostelatIbValley–Rs.2.78Cr.• Construction of new 100 bedded ward at District Hospital, Angul- Rs.2.85 Cr andadditionalfundofRs145lakhswithICU.

• CremationGround/RajghatatSambalpur-Rs.1.0Cr• LightingarrangementalongseabeachofPuriandGrandpuri-Rs.5.5Cr.


71

MahilaMandal-TheFemaleSocialworkgroupsofMCL”

In India, the concept of MahilaMandal came to existence in 1955 at thetimewhenfirstfive-yearplanwasabouttoover,withthestressonWomeneducationhealth services for the mother and child,supplementaryfeedingforthechildrenandwomen's economic development. We atMCL,alsobelieve in “Trainamanandyoutrainan individual, trainawomanandyoubuildanation”.

TheseVoluntarygroupsformedbythewives of senior MCL executives at Headquarterandarealevelsarepilotingmanyofour CSR activities. These groups work forupliftment of women and children in therural areas. Currently there are 12 groupsacrossvariousareas(depictedinthefigure),that perform as social work groups, eachheaded by the wife of the most seniorexecutiveinthearea.

SambalpurHQ

Jagruti

• Ananya(JagannathArea)

• Surabhi(BharatpurArea)

• Pratibha(HingulaArea)

• Ashakiran(LingarajArea)

• Pragati(TalcherArea)

• Sanjeevani(KanihaArea)

• Sankalp(Centralworkshop)

• Ekta(IbValleyArea)

• Sangam(LakhanpurArea)

• Chetana(BasundharaArea)

TalcherCF IbValleyCF

ConstructionofMedicalcollegeatTalcherinprogress

10,524no’sofSchooltoiletshavebeenconstructed


72

TheMahilaMandalshavefourtargetareasofinterventiontowardssocialupliftmentofmarginalizedanddeprivedsectionofthesociety:Jigyasa(Education),Sanjeevani(Health),Samarpan(Charity),Swabalamban(SocialEmpowerment).

OurMahilaMandal,withtheirmagicofemotionaltouchcarryouttheiractivitiesinandaround the areas in which they operate. In order to protect trees, they celebrated VanMahotsavaon26th July2016alongwith theenvironmentdepartment.Theyhaveplantedtreesalongwith childrenofDAVpublic school in thepremisesofAnandvihar.All the11Mahila Mandals has undertaken various Projects e.g., skill development like computerliteracy,drivingandstitching,AttaChakiprogramme,takingcareofgirl’shealthbyprovidingmedicines, donating the essential clothes and sweaters to old age groups in Ashrams,organisingcampsatthreetofourmonthscampingforthedevelopmentofchildren,providingallessentialfoodproductstoleprosypeopleetc.,

MahilaMandalatheadquarterandarealevelhascelebratedInternationalWomen’sDayon8thMarch,2017.ThethemeonthisdayatHeadquarterwas“Beboldforchange”.Theguest of honour was Mrs. Rajeswari Panigrahi (MLA), Dump operator (CWS, Talcher).PresidentRanjitha tripathy inher speech said that “Educateawomanandyoueducateafamily and in turn their community will prosper”. She also added that education buildsconfidenceandhelpustotakethedecisionsonourown.Differentcompetitionswereheldon6thand7thMarch,2018likedrawing,rangoli,songsandpoems,speechesetc.,

Vision Jigyasa Sanjeevani Swabalamban Samarpan

An awareness program was heldregardingbankactivitieson27.01.2018forallthemaidworkersatJagrutivihar.Backaccounts of100maidswere openedwiththe help of UCO bank. On this occasion,shawlsweredistirbutedtoallthemaids.

On Republic day 2017, Ladli candidatesparticipated in the parade and they wereappreciated and prizes were distributed.Theyalsoencourageandhelpwomentolearndriving. Mahila Mandal has helped 15memberstogetdrivinglicense.

Healthcheckupforkids-Nounihal


73

Providingnecessaryessentialsforkidsandaged

peopleatPhooljhranAhsramam

The Breast cancer awareness program was held on 22nd October 2016 by Women in public sector (WIPS) and Jagrirti Mahila Mandal at MCL. Women from Anand vihar colony and Jagriti vihar colony of MCL, HQ marched to kirab village in Burla with pink colour ribbon by delivering messages regarding breast cancer.

Duringdistributionofblanketstoschoolkids WIPSrepresentative’sareameetat

MCL,HQ


74

LandAcquisition:

Landistheprimaryinputforallcoalminingprojectsanditsacquisitionisamajorhurdle.Landisacquiredforcoalprojectsaspertheprojectrequirementsandtheacquiredlandisbeing utilized in accordance with the mining plan in phases as per progress of miningoperation.Forstartinganewproject,expansionofexistingmines,settingupofwasheriesordiversificationtopowerplants,landistheveryfirstrequirement.WeatMCL,landisacquiredundertheActs/Modes

a. CoalBearingAreas(AcquisitionandDevelopment)Act,1957(CBA(A&D)Act)b. LandacquisitionAct1894(LAAct)and,c. Inextremeurgency,throughnegotiationwiththeLandowners-Directpurchase.d. ForestlandisobtainedbyinvokingtheprovisionoftheForest(Conservation)Act,

1980.

Besidesacquiring,wesecurelandbyobtainingalltherelevantclearanceslikeEC,FCetc.In spite of taking all the essential measures to start a project on time, sometimes it isinevitableasweneedtorelyonexternalfactorsthatarebeyondourcontrol.Ourdynamicworkforceiscontinuouslyengagedinresolvingthepertinentissuesoflandacquisitionsincethepastfewyears.Weunderstandthattheseissuescannotbetackledinonego.Butweareconfident thatwithourexperienceandpersistencewewill continue to resolve themandsimultaneouslybuildastrongfoundationforourgrowthjourneyinastrongsustainablesense.

Weacquire landpossessedunder threedifferent categories,namely tenancy land,Governmentnon-forestlandandforestland.

RehabilitationandResettlement

Weafteracquiringthecoalbearing land,relocatethepeople livingonthosehomelandstootherareas.Thisiseasiersaidthandone,astheimpactofrelocationgoesbeyondlossofinheritedland.Theseissuescanincludelossofphysicalincomeearningassetssuchashomes,productiveland,andjobs,andnon-physicalassetslikecommunitysupport,culturalsites,andsocialsystems.Foodinsecurity,pooraccesstohealthcareandeducation,andsocialdisruptionarethemajorconcernsofthecommunitiestobedisplaced.Inourexperience,alltheseissuesmakeitverychallengingtoconvincepeopletogiveawaytheirlandandrelocatetonewlivingspaces.Itisn’tapleasantpursuit,butwearecompelledtopersevereinordertoensure energy security for our country and the long-term sustainanceof our business. Indoingso,weencountermyriadunforeseencircumstancesthatwepersistentlytrytotackle.TheconcernsofthelocalCoal-bearinglandsareoftenlocatedinremoteareasofOdisha.Infact, our KuldaOCP andBasundhara (West)OCP projects are located on the premises ofindigenous communities.Whenwe acquire these lands, we need to provide appropriatecompensation to the landholders. Very often the economic status of the villagers maysuddenlyescalatebecauseof thiscompensation.Thisdoesnotalwayssoothetheanguish

DuringFY2016-17,weacquired1611.257hectaresoflandandobtainpossessionof147.637hectaresoflandtoexecutevariousprojects.


75

many of them feel at losing their land. This iswhywe focus strongly on providing thesevillagers with the best resettlement and rehabilitation facilities. We have adopted theRehabilitation&ResettlementPolicy(R&R)oftheGovernmentofOdisha,forremunerationofthosewholosetheirlandandfortheProjectAffectedFamilies.Wehavealsoattemptedto modify certain compensation packages to further benefit these PAFs. IndigenouscommunitiesarealsocompensatedasperourR&Rpolicy.Theconsentofthesecommunitiesissoughtthroughapublichearingbeforeweacquiretheland.Wheneverweacquireforestland,a‘PalliSabha’isconducted,inordertogettheconsensusofthecommunities.

There have been no significant incidents of violations involving the rights ofindigenouspeople,byMCL,duringthereportingperiod.MCLactsontheadviceofCBAPartTime Tribunal (under the CBA [A&D] Act, 1957), or the Civil Court (under LA Act, 1894),Rehabilitation&PeripheralDevelopmentAdvisoryCommittees(RPDAC)andPLRRC(ProjectLevelRehabilitationandResettlementCommittee)foraddressinggrievancesoflandoustees.

Grievance Redressal of Land Oustees

CBA

RPDAC&itssub-committees

Handlingdisputesrelatedtocompensationpaidforland

Handlingissuesofdisplacedcommunitythroughregularmonitoringandreviewsub-committeesredressindividualcasestakenupbylocaladministrationand

seniormanagementofMCL.

PLRCC

Handlingdisputesatlocallevelunderthe

chairmanshipofDistrictcollector

GrievanceRedressalofLandOutsees

R&RsiteatChhattanpalli,BasundharaArea


76

ResettlementTrends:

Some of the prominent R&R sites where our PDFs have been re-settled include,Handidhua,Ghantapada, Kuio Jungle,Danara,Gurujang, Boulpur, Baghmara, Balanda andPatharmunda inTalcherCoalfield, andTikilipara,Barpali,GaneshNagar, JagannathNagar,Khadam,Belpahar,andSanjob,Chhattanpalli,Sarangijharia,BadkhaliainIbValleyCoalfield.Thesesitesareprovidedwithorbeingdevelopedwithallbasicamenitiesincludingdrinkingwater, electricity, roads, shopping complexes, schools, etc. When 20 or more displacedfamilieschoosetosettletogetherinaplacethatisnotanR&Rsite,weprovidethemwithinfrastructure and amenities such as electricity, water, roads, drainage facilities, and aboundarywall.

OnetoonediscussionwithSeniorofficersregardingLAARperspectivesofMCLwithASC,Hyderabad.

ColonyatBaghmaraR&Rsite

WatersupplyatBoulpurR&Rsite

SchoolplaygroundatBoulpurR&Rsite

DuringFY,weresettledatotalof559PAFsupto31.03.2017andthesefamilieseitherchoserelocationtoR&Rsites,ortositesoftheirownchoice


77

OurComprehensiveR&RScheme:

Our unique R&R scheme is based on an all-inclusive model that offers attractivecompensationpackagesalongwitharangeoflivelihoodoptions,forPAFs(Projectaffectedfamilies).ThesePAFsarefreetoselectthemostappropriateofferthatbestsuitstheirneeds.

Incentives

EstablishmentAssistance

Annuity

CompensationDetailsFY2016-17:• MCLhaspaid200.09crores rupees

ascompensationforland,treesandstructures and also granted 35.45crores rupees towards cashcompensationinlieuofemploymentto383persons.

• Annuityinlieuofemploymentto01personhasbeensanctioned.

• Resettlement expenditure includingincentives to the PDFs (ProjectDisplacedFamilies)was19.19crorerupees.

-in lieu of employment Rs.12,000 monthlybasis till age of 60. A hike of Rs.1,000 permonthforeverytwoyears,canbeavailedbyPAFswhoareeligibleforemploymentatMCL.

-FinancialassistanceuptoRs.3,162,00/-for house building, maintenance,temporaryhousingshedandtransport.

ThisschemeisuniquetoMCL-CashincentiveofRs.100000,75000or50,000forhandingovertheirpropertywithin a periodof one, twoor threemonthsrespectively.

Ex-gratia

CashincentiveofRs.25,000,15000or10,000forhandingoverconstruction/encroachmentonGovt.Land.

CashCompensation

W.e.f1.11.2016-Rs.16LakhsinlieuofEmployment-10dec.oflandinadevelopedresettlementsiteorRs.6lakhinlieuofresettlementplot.

Sustainablelivelihood:FY-2016-17• Intwoyearscheme,426personswereenrolledunder

the ‘Schooling and Skilling’ programme and wereadmittedinvariousschools(345nosunderNIOS/SIOS),ITIsandforotherspecialisedtrainingcourses(49fitters&32electrician(includingwelding)).

• 19.67% of MCL’s total coal transportation work wasaccomplished by vendor development scheme. Theregistered societies that were successful in loading /transporting94.17MTofcoal,bydeploying667tippersperday.

EmploymentandCapacityBuilding:Membersabove theageof18,areprovidedemployment for any PAF sustaining loss ofagriculture land, homestead land anddwellinghousesofevenlessthanmere2dec.Vendor-developmentscheme-TopromoteentrepreneurshipamongstPAFs:Inthisscheme,theyareofferedcontractsforcoal transportation by nomination. PAFmembersneed to apply for contracts as co-operativesocieties.Theschemerecordedtheenrolment of nearly 68 such co-operativeswith856beneficiaries,immediatelyafterthereportingperiod.ThePAFsarecompletelyinfavour of this sustainable scheme, whichoffers long-term continuity of theirlivelihood.

Besidesthecompensation,weatMCLcareforthelivelihoodfacilitiesofPAFS.


78

KEYPERFORMANCEINDICATORS

ProductionPerformancedata

ProductionPerformance

EconomicPerformanceData

EconomicPerformance 2016-17 2015–16 2014–15Economicvaluegenerated(A) INR(Crores)Revenue(throughcorebusinesssegments) 24293.38 19829.58 14989.05Otherincome(throughothersources) 1486.31 2116.55 2079.80Othercomprehensiveincome (1.40)

Total(A) 25778.29 21946.13 17068.85Economicvaluedistributed(B) INR(Crores)Operatingcosts 6061.71 6280.59 5669.54Personnelexpenses(wages+benefits) 2372.25 2077.96 1997.10Interestcharges 7.95 1.59 1.44Taxesandroyalties(includesdirecttaxessuchasincometax,corporatedividendtax,etc.)

13606.06 9890.51 6434.69

Dividends(paymentstocapitalproviders) 2982.00 3608.45 3841.82Communitydevelopment/CSRinvestments 166.60 184.64 61.3

Total(B) 25196.57 22043.74 18005.89Economicvalueadded(A-B) 581.72 -97.61 -937.04

Annexures


79

EmployeeBenefitExpensesParticulars 2016–17 2015–16 2014–15

INR(crores)Salaries,wages,allowances,bonusandbenefits 1544.75 1497.23 1410.53NCWA-XProvision 146.01 Executivepayrevisionprovision 9.78 Ex-gratia 112.38 111.11 90.63PRP 21.09 30.47 38.93ContributiontoPFandotherfunds 204.91 195.69 186.3Gratuity 57.38 26.19 48.03Leaveencashment 106.01 59.93 71.56VRS 0.00 0.27 0.01Workmencompensation 0.76 0.03 0.55Medicalexpensesforexistingemployees 43.69 39.45 38.79Medicalexpensesforretiredemployees 5.29 6.8 1.26Grantstoschoolsandinstitutions 26.04 27.77 21.85Sportsandrecreation 7.95 3.84 5.48Canteenandcrèche 1.03 1.06 0.91Power–township 57.23 57.53 60.19Hirechargesofbus,ambulance,etc. 3.92 3.17 3.37Otheremployeebenefits 24.03 17.42 18.71Total 2372.25 2077.96 1997.10

Peopleperformancedata

WorkforceProfilePermanentEmployees:Category-wiseandGender-wise

EmployeeCategory 2016-17 2015-16 2014–15M F Total M F Total M F Total

Executives 1743 85 1828 1774 87 1861 1800 84 1884Non-executives(Technical)

3088 239 3327 2984 242 3226 2909 231 3,140

Non-executives(non-technical)

15421 1460 16881 15909 1401 17310 15834 1401 17235

Total 20252 1784 22036 20667 1730 22397 20543 1716 22,259PermanentEmployees:Region-wiseandGender-wise

Region 2016–17 2015–16 2014–15M F Total M F Total M F Total

IbValleyCoalfield 8043 546 8589 8495 524 9019 8525 510 9035TalcherCoalfield 11436 1151 12587 11418 1123 12541 11261 1129 12390Corporate 773 87 860 754 83 837 757 77 834Total 20252 1784 22036 20667 1730 22397 20543 1716 22259

WorkforceProfile

ContractualEmployees:Region-wise FY2016-17 FY2015-16 FY2014-15

Region Male Female Total Male Female Total Male Female TotalTalcherCoalfield 9100 83 9183 9404 3 9407 9565 48 9613IbValleyCoalfield 6952 46 6998 5709 40 5749 5360 22 5382

Corporate 472 41 513 432 42 474 473 8 481Total 16524 170 16694 15545 85 15630 15398 78 15476


80

EmployeeHiresStatistics FY 2016-17 FY 2015-16 FY 2014-15

EmployeeHireCategory Executives Non-executives

Total Executives Non-executives

Total Executives Non-executives

Total

M F M F M F M F M F M F M F M F M FAppointmentunderNCWA-9.3.0(incaseofdeath)

0 0 69 30 69 30 0 0 48 23 48 23 63 24 63 24

AppointmentunderNCWA-9.4.0(incaseofpermanentdisability)

0 0 1 1 1 1 0 0 1 0 1 0

Appointmentunderlandoustees

0 0 309 62 309 62 0 0 695 60 695 60 533 36 533 36

Freshrecruitment 62 0 166 5 228 5 85 9 191 28 276 37 106 16 107 0 Re-instatement 0 0 1 0 1 0 0 0 1 1 1 1 100 16 100 16Transferfromothercompany 111 5 9 0 120 5 37 0 5 0 42 0 32 13 45 0Appointmentagainst(SFVRS) 0 0 1 0 1 0 0 0 68 0 68 0

00 0 0 0 0

Total 173 5 556 98 729 103 122 9 1009 112 1131 121 138 16 816 76 954 92

EmployeeTurnoverStatistics FY2016-17 FY2015-16 FY2014-15

EmployeeTurnoverCategory

Executives Non-executives

Total Executives Non-executives Total Executives Non-executives Total

M F M F M F M F M F M F M F M F M FDeath 2 0 127 4 129 4 3 0 119 2 122 2 5 106 8 111 8Dismissal 0 0 6 0 6 0 2 0 8 0 10 0 4 1 1 5 1Resignation 32 3 15 2 47 5 23 2 10 1 33 3 22 2 6 2 28 4Retirement 65 0 699 23 764 23 65 1 617 25 682 26 65 1 628 13 693 14Removal/Termination

15 1 70 1 85 2 14 1 106 0 120 1 19 3 101 12 120 15

ESS/VRS 10 0 10 0 0 1 69 1 69 1 4 26 5 26Medicallyunfit 0 0 0 0 0 0 0 0 1 0 1 0 3 3 0Transfertoothercompany

90 3 24 1 114 4 39 4 1 0 40 4 26 1 5 31 1

Total 204 7 941 41 1145 48 146 8 863 97 1009 105 142 7 854 62 996 69


81

Peopleperformancedata

TrainingstatisticsTrendDescription 2016-17 2015–16 2014–15

No.Trained

TrainingHours*

No.Trained

TrainingHours

No.Trained

TrainingHours

Executive Male 1761 22.5 1604 27.93 1688 32.81 Female 91 19.32 123 29 85 12.88 Total 1852 22.4 1727 28.01 1773 31.87

Non-executive

Male 8092 37.29 8948 44.05 6053 32.64 Female 483 36.96 545 34.36 255 29.12 Total 8575 37.27 9493 43.49 6308 32.5

Non-executive

Skilled 6006 36.27 6943 39.84 5200 33.09 Unskilled 2569 39.59 2550 53.46 1108 26.04 Total 8575 37.27 9493 43.49 6308 31.85

PerformanceReviewStatisticsEmployeeType:Executives

Description 2016-17 2015–16 2014–15Male Female Total Male Female Total Male Female Total

TotalNumberofemployees

1743 85 1828 1774 87 1861 1800 84 1884

Totalnumberofemployeesreceivingregularperformanceappraisals

1743 85 1828 1774 87 1861 1800 84 1884

Percentage 100% 100% 100% 100% 100% 100% 100% 100% 100%EmployeeType:Non-Executives

TotalNumberofemployees

18509 1699 20208 18893 1643 20536 18743 1632 20375

Totalnumberofemployeesreceivingregularperformanceappraisals

8012 2376 10388 6737 551 7288

Percentage 51.40 35.48


82

SafetyStatistics FY2016-17 FY2015-16 FY2014-15 Regionwise Gender Regionwise Gender RegionWise Gender

Category Overall TCF IBV HQ M F Overall TCF IBV HQ M F Overall TCF IBV HQ M FNumberofFacilities

6 4 2 0 6 0 2 1 1 0 2 0 1 1 0 0 1 0

EmployeesRatesofInjury(IR)

0.0207 0.00774 0.01291 0 0 0 0.0009 0.0007 0.0002 0 0.0009 0 0.033 0.037 0.026 0 0.034 0

OccupationalDiseaseRate(ODR)

0 0 0 0 0 0 0.0009 0.0002 0.0007 0 0.0009 0 0.003 0.005 0 0 0.028 0

LostDayRate(LDR)

1.98082 0.98912 0.99170 0 1.98082 0 2.9473 1.6666 1.1814 0.1069 3.2354 0.2335 2.574 3.217 1.950 0 2.718 0

AbsenteeRate(AR)

5.75 5.75 5.75 0 5.75 5.75 0.245 0.2386 0.2723 0.0118 0.2473 0.1965 0.214 0.208 0.253 0.009 0.216 0.149

IndependentContractorsRatesofInjury(IR)

0.00258 0 0.00258 0 0.00258 0 0 0 0 0 0 0 0.028 0.04 0.015 0 0.028 0

OccupationalDiseaseRate(ODR)

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

LostDayRate(LDR)

0.01033 0.01033 0 0 0.01033 0 2.0833 1.2611 0.7661 0.056 2.0721 0.0112 2.719 3.749 2.313 0 2.765 0

AbsenteeRate(AR)

5.75 5.75 5.75 5.75 5.75 5.75 0.3333 0.3333 0.3333 0 0.3333 0 0.324 0.331 0.312 0 0.324 0


83

EnvironmentPerformanceData

RawMaterialConsumptionStatisticsRawMaterials 2016–17 2015–16 2014–15

Explosives(intonnes) 1 Permittedexplosives 523.098 566.19 676.33 2 Largediaexplosives 4,255.673 1,877.24 2,378.20 3 Bulkexplosives 39,660.696 31,667.73 28,899.01 4 Castboosters 85.200 72.52 64.05

Total 44,524.666 34,183.68 32,017.58 Detonators(inlakhs) 1 CED 0.220 0.20 0.18 2 CDD 12.060 12.80 15.04 3 Cordrelay 0.02 0.03 0.06

Total 12.30 13.03 15.28 Non-electricdetonators(innumbers) 9,79,503 14,55,130 12,14,279 DetonatingFuses(inlakhmetres) 2.86 4.32 5.72

EnergyConsumptionandGHGEmissionTrend Particulars EnergyConsumption tCO2emissions

(GJ) 2016-17 2015-16 2014-15 2016-17 2015-16 2014-15 Scope1 16,70,685.90 17,66,664.96 16,88,482.99 1,22,956.14 1,29,321.92 1,25,274.63Scope2 10,87,492.90 10,82,214.00 10,99,040.40 2,47,706.72 2,46,504.30 2,50,336.98Scope3 30,24,170.12 28,64,555.17 22,16,352.87 2,00,197.31 2,13,893.76 1,65,737.38

Total 57,82,348.92 57,13,434.13 50,03,876.26 5,70,860.16 5,89,719.99 5,41,349.00

SurfaceWaterConsumptionStatistics NameofArea/Project SurfaceWaterSources TotalWaterWithdrawn

(millionlitres/year) 2016–17 2015–16 2014–15

IWSSTalcher BrahmaniRiver 10,821.42 10,821.42 16,888.80 IWSSLakhanpurarea HirakudReservoir(Mahanadi) 98,29.49 893.59 2,449.44 IWSSIbValleyarea IbRiver 3,288.42 3,288.42 7,275.30 IWSSBasundhara BasundharaRiver 326.16 326.16 791.42 MCLHeadquarters,Burla PowerChannel(Mahanadi) 364.59 364.59 182.40

Total 24,630.08 15,694.18 27,587.36


84

EnvironmentPerformanceData

GroundWaterUsageStatistics GroundWaterUsageDetails QuantityofWater(millionlitres/year)

2016–17 2015–16 2014–15 Annualmakeupofwaterinmines 95,422.68 86,008.95 80,165.00 Minewaterused 15,570.9 33,898.18 40,366.25 Domesticuse 5,701.300 5,215.79 6,618.00 Industrialuse 14,925.580 17,786.05 13,707.00 Forsurroundings 15,570.9 10,896.35 20,041.25

AirQualityData–FY2016-17

AirQualityParameters TalcherCoalfield IbValleyCoalfield Total Totalparticulatematter(kg) 90,21,148.00 1,10,71,122.00 2,00,92,270.00 SOx(Kg/Te) 43,357.00 54,231.00 97,588.00 NOx(Kg/Te) 61,966.00 32,268.00 94,234.00 PM2.5(Kg/Te) 13,53,172.20 16,60,668.30 30,13,840.50

WasteDisposalStatistics

WasteCategory QuantityDisposedOff 2016-17 2015-16 2014–15

Hazardous Burntoil(kL) 98.00 126.00 397.00

Battery(numbers) 5,624.00 1,808.00 1,138.00 Miscellaneousitems 1,806.00 - 10.00

Non-hazardous Drillbits(numbers) 823.00 - 150.00 Tyres(numbers) 345.00 1,619.00 3,740.00 Ironandsteel 1,431.00 1,550.00 2,566.40 Emptydrums(numbers) 1,100.00 2,554.00 - Vehicles(numbers) 30.00 70.00 19.00 Miscellaneousitems(MT) 5.00 17.15 200.00


85

EnvironmentalPerformanceData

EnvironmentalExpenditure

DetailsofExpenditure 2016-17 2015-16 2014–15CapitalExpenditure INR(lakhs) Civilworks-plantationandafforestation 0.00 -10.16 Civilworks-effluenttreatmentplant 82.06 Civilworks-effluenttreatmentplantunderconstruction 31.51 12.77 Civilworks-settlingponds&oil&greasetraps 22.44 7.62 SurfaceMiners 0.00 0 340.44 WaterSprinklers 272.40 0 0 Dustsuppressionequipment 5.20 5.39 0 VehiclesESMP -2.50 0 Watertreatmentplants 19.18 85.11 50.45 Environmentalmonitoringequipment 12.63 0 Noiselevelmeter 27.71 Otherenvironmentalexpenses 0.75 -14.56

TotalCapitalExpenditure(A) 470.63 98.87 378.94 Revenueexpenditure Treeplantations 282.60 126.58 98.77OtherEnvironmentalexpenses 751.56 777.31 695.65Watertax/cess 2117.30 189.99 873.6Environmentaltrainingandseminars 0.35 1.11 0.3Environmentalmonitoringcostforair,waterandnoise 549.94 106.15 272.35Environmental-relatedoperationsandmaintenance-catch/garlanddrain/fencing

56.12 98.35 67.39

Environment-relatedoperationsandmaintenance–ETP/STP

33.45 18.83 10.4

Environment-relatedoperationsandmaintenance–mobileandfixedwatersprinklers.

68.65 77.57 75.96

Environmentmonitoringcost 1.11 3.98 3.06Environmentalrelatedoperationsandmaintenance-otherdustmitigatingequipment

38.84 22.17 25.46

Repairandmaintenancefordustsuppressionmeasures 11.83 72.91 51.49Miscellaneous–groundwatermonitoring,etc. 0.00 0 0Dustsuppressionmeasures 5.94 13.12 27.89TotalRevenueExpenditure(B) 3,917.69 1,508.07 2,202.32TotalExpenditure(A+B) 4388.32 1,606.94 2,581.26


86

SocialPerformanceData

CSRExpenditure 2016-17 2015-16 2014–15 INR(lakhs) WaterSupply 732.19 864.91 779.65 Sanitation 20.10 10.43 81.38 EradicationofPoverty 0.15 7.27 Healthcare 42.75 1,390.71 65.67 Education 12010.72 255.58 395.66 SocialEmpowerment 12.52 SkillDevelopment 14.20 15.88 WomenEmpowerment 0.12 1.52 43.34 EmpowermentofSCs/STs/SeniorCitizens 9.75 16.31 Environmentalsustainability 79.64 131.53 36.16 Sports 456.01 621.88 734.39 ReliefFund 0.00 ProtectionofNationalHeritage 19.56 57.36 InfrastructureDevelopment 765.34 736.24 689.89 Road 711.73 1,261.04 2,689.01 Electricity 10.89 597.54 Other/Miscellaneous 0.30 23.32 17.5 SwachhVidyalayaAbhiyan(forConstructionoftoilets)inOdishabyMCL

1774.34 13,070.12

TotalExpenditure 16660.34 18,464.10 6130.19


87

MAPPINGWITHUNGCPRINCIPLES Principles Statement Page

No. HumanRights

Principle1 Businessesshouldsupportandrespecttheprotectionof internationallyproclaimedhumanrights

21Principle2 Makesurethattheyarenotcomplicitinhumanrightsabuses

LabourPrinciple3 Businessesshouldupholdthefreedomofassociationandthe

effectiverecognitionoftherighttocollectivebargaining 66

Principle4 Theeliminationofallformsofforcedandcompulsorylabour 21

Principle5 Theeffectiveabolitionofchildlabour Principle6 Theeliminationofdiscriminationinrespectofemployment

andoccupation 58

Environment

Principle7 Businesses should support a precautionary approach to environmentalchallenges

23-27

Principle8 Undertakeinitiativestopromotegreaterenvironmentalresponsibility

39-55

Principle9 Encouragethedevelopmentanddiffusionofenvironmentallyfriendlytechnologies

Anti-CorruptionPrinciple10 Businessesshouldworkagainstcorruptioninallitsforms,

includingextortionandbribery 18-20


88

GRIContentIndexGeneralStandardDisclosures

Disclosure Description Pageno. Omission

(Ifany)STRATEGYANDANALYSISG4-1 StatementfromtheSenior-mostdecision-maker 4-5 G4-2 Descriptionofkeyimpacts,risks,andopportunities 26-27

ORGANIZATIONALPROFILEG4-3 Nameoftheorganization 3 G4-4 Primarybrands,products,andservices 14-15 G4-5 Locationoftheorganization’sheadquarters 14 G4-6 Countriesofoperation 14 G4-7 Reportthenatureofownershipandlegalform 12-13 G4-8 Marketsserved 37-38 G4-9 Scaleoftheorganization:Workforce;Operations;Revenues;production 79-80,32-34 G4-10|<6> WorkForcebyType;Gender;Region 79 G4-11|<3> Percentageoftotalemployeescoveredbycollectivebargainingagreements 66 G4-12 Describetheorganization’ssupplychain 36 G4-13 Significantchangesofreportingperiod None G4-14 Reportwhetherandhowtheprecautionaryapproachorprincipleisaddressed

bytheorganization(sustainabilityapproach)23-27

G4-15 Sustainabilitycharters 88-93 G4-16 Listmembershipsofassociations 21 IDENTIFIEDMATERIALASPECTSANDBOUNDARIESG4-17 Organization’sconsolidatedfinancialstatements 78-79 G4-18 DefinitionofreportcontentandAspectBoundaries 3 G4-19 Materialaspects 30-31 G4-20 AspectBoundariesofMaterialAspectsInsideOrganization 30-31 G4-21 AspectBoundariesofMaterialAspectsOutsideOrganization 30-31 G4-22 RestatementsofPreviousReportedData None G4-23 Significantchangesfrompreviousreportingperiod 60 STAKEHOLDERENGAGEMENTG4-24 Listofstakeholdergroups 29 G4-25 BasisofEngagementwithStakeholderGroups(stakeholdereng) 28 G4-26 Stakeholderengagement(mode,frequencies) 29 G4-27 KeyConcernsofStakeholders 31 REPORTPROFILEG4-28 Reportingperiod 3 G4-29 Dateofmostrecentpreviousreport(ifany) 3 G4-30 Reportingcycle(suchasannual,biennial) 3 G4-31 Contactpoint 3 G4-32 GRIindex 88-93 G4-33 Externalassurance Ourdataisauditedduring

assuranceprocessofourparentcompany-CIL

GOVERNANCEG4-34 Governancestructure 16,17 G4-35 Sustainabilitystrategy 23 G4-36 Sustainabilityframework 26

<6>,<3>OrangesymbolwithnumberindicateslinkagetoUNGC‘Tenprinciples”,2000


89

GeneralStandardDisclosures Disclosure Description Pageno. Omission

(Ifany)GOVERNANCEG4-37 Sustainabilityengagements 28-29 G4-38 Corporategovernance 12 G4-39 Whetherthechairoftheboardisalsoanexecutiveofficer Yes G4-40 Nominationandselectionprocessesfortheboardanditscommittees 16-17 G4-42 Boardandexecutives’rolesintheorganization’smissionstatements,strategies,

policies,andgoalsrelatedtosustainabilityimpacts16-17,23-26

G4-43 Measurestakentodevelopandenhancethehighestgovernancebody'scollectiveknowledgeofeconomics,environmentandsocialtopics.

16-17

G4-45 Sustainabilitygovernance 23-26 G4-46 Riskmanagementframework 26-27 G4-47 FrequencyofRiskReview 26-27 G4-48 Reportthehighestcommitteeorpositionthatformallyreviewsandapprovesthe

organization’ssustainabilityreportandensuresthatallmaterialAspectsarecovered.26

G4-49 Communicatingcriticalconcernstohighestgovernancebody 16-17 G4-51 Remunerationpoliciesfortheboardandseniorexecutives 16-17

ETHICSANDINTEGRITYG4-56 Organization’svalues,principles,codesofconductandcodesofethics. 18-19 G4-57 Grievanceredressal 20 G4-58 Whistleblowingmechanismsorhotlines 20

SpecificStandardDisclosuresCATEGORY:ECONOMIC MaterialAspects

DMAandIndicators

Description Pageno. Omission(ifany)

ECONOMIC

PERFORMANCE

G4-EC1 Directeconomicvaluegeneratedanddistributed 78 G4-EC2 Financialimplicationsandotherrisksandopportunitiesforthe

organization’sactivitiesduetoclimatechange 42

G4-EC3 Coverageoftheorganization’sdefinedbenefitplanobligations 78 G4-EC4 Financialassistancereceivedfromgovernment 34

MARKETPRESENCE G4-EC5|<6> Ratiosofstandardentrylevelwagebygender 58 G4-EC6 Proportionofseniormanagementhiredfromthelocalcommunityat

significantlocationsofoperation AllLocalsreferstoIndian

nationals

INDIRECTECONOMICIMPACTS

G4-EC7 Developmentandimpactofinfrastructureinvestmentsandservicessupported

66-68,86

G4-EC8 Significantindirecteconomicimpacts,includingtheextentofimpacts 68,86

<6>OrangesymbolwithnumberindicateslinkagetoUNGC‘Tenprinciples”,2000


90

SpecificStandardDisclosuresCATEGORY:ENVIRONMENT MaterialAspects

DMAandIndicators

Description Pageno. Omission(ifany)

MATERIALS G4-EN1 Materialsusedbyweightorvolume 83 G4-EN2 Percentageofmaterialsusedthatarerecycledinputmaterials 54

ENERGY

G4-DMA DisclosureonManagementApproach 39-42

G4-EN3|<7,8> Energyconsumptionwithintheorganization 39-40

G4-EN4 Energyconsumptionoutsideoftheorganization 40 G4-EN5|<7,8> Energyintensity 41 G4-EN6|<7,8> Reductionofenergyconsumption 39-41 G4-EN7 Reductionsinenergyrequirementsofproductsandservices 40

WATER

G4-DMA DisclosureonManagementApproach 42 G4-EN8|<7,8> Totalwaterwithdrawalbysource 42-43 G4-EN9 Watersourcessignificantlyaffectedbywithdrawalofwater 42 G4-EN10|<8> Percentageandtotalvolumeofwaterrecycledandreused 42

BIODIVERSITY

G4-DMA DisclosureonManagementApproach 51 MM1 Amountofland(ownedorleased,andmanagedforproduction

activitiesorextractiveuse)disturbedorrehabilitated 74

G4-EN11 Operationalsitesowned,leased,managedin,oradjacentto,protectedareasandareasofhighbiodiversityvalueoutsideprotectedareas.

Allourfacilitiesareoutsideofprotectedareaandareaofhighbiodiversity

value

G4-EN12 Significantimpactsonbiodiversity 51-52

G4-EN13 Habitatsprotectedorrestored 53

G4-EN14 TotalnumberofIUCNRedListspeciesandnationalconservationlistspecieswithhabitatsinareasaffectedbyoperations,bylevelofextinctionrisk

None

EMISSIONS

G4-DMA DisclosureonManagementApproach 41 G4-EN15|<7,8>

Directgreenhousegas(GHG)emissions(Scope1) 41,83

G4-EN16|<7,8>

Energyindirectgreenhousegas(GHG)emissions(Scope2) 41,83

G4-EN17|<7> Otherindirectgreenhousegas(GHG)emissions(Scope3) 41,83 G4-EN18 Greenhousegas(GHG)emissionsintensity 41

G4-EN19|<8,9>

Reductionofgreenhousegas(GHG)emissions 41

G4-EN21|<7,8>

NOX,SOX,andothersignificantairemissions 84

EFFLUENTSANDWASTE

G4-DMA DisclosureonManagementApproach 42-44

G4-EN22 Totalwaterdischargebyqualityanddestination 44

G4-EN23|<8> Totalweightofwastebytypeanddisposalmethod 84

MM3 Totalamountsofoverburden,rock,tailings,andsludgesandtheirassociatedrisks

54

G4-EN25|<8> Weightoftransported,imported,exported,ortreatedwastedeemedhazardousunderthetermsoftheBaselConvention2AnnexI,II,III,andVIII,andpercentageoftransportedwasteshippedinternationally

None

G4-EN26 Waterbodiesandrelatedhabitatssignificantlyaffectedbytheorganization’sdischargesofwaterandrunoff

44

PRODUCTSANDSERVICES

G4-EN27|<7,8,9>

Mitigationofenvironmentalimpactsofproductsandservices 41,44,46,

COMPLIANCE

G4-DMA DisclosureonManagementApproach 37

G4-EN29|<8> EnvironmentalFines None

TRANSPORT G4-DMA DisclosureonManagementApproach 45

G4-EN30|<8> Significantenvironmentalimpactsoftransportation 45-46

<7>,<8>,<9>OrangesymbolwithnumberindicateslinkagetoUNGC‘Tenprinciples”,2000


91

SpecificStandardDisclosures

CATEGORY:ENVIRONMENT

MaterialAspects

DMAandIndicators

Description Pageno.

Omission(ifany)

OVERALL G4-EN31 Totalenvironmentalprotectionexpendituresbyinvestmentstype 85 G4-EN32|<7,8,9> Percentageofnewsuppliersthatwerescreenedusing

environmentalcriteria Weareworking

towardsincludingthisclauseinthesupplierselectioncriteria

ENVIRONMENTALGRIEVANCEMECHANISMS

G4-EN34 EnvironmentalGrievancesandtheirRedressal None

CATEGORY:SOCIALLABOURPRACTICESANDDECENTWORKS

MaterialAspects

DMAandIndicators

Description Pageno.

Omissions(ifany)

EMPLOYMENT G4-DMA DisclosureonManagementApproach 57-59 G4-LA1 Employeehiresandturnoverratesbyage,genderandregion 80 G4-LA2 Benefitsprovidedtofull-timeemployees 58,66 G4-LA3 Returntoworkandretentionratesafterparentalleave,bygender 58

LABOUR/MANAGEMNETRELATIONS

G4-DMA DisclosureonManagementApproach 66 G4-LA4 Minimumnoticeperiodsregardingoperationalchanges 66 MM4 Numberofstrikesandlock-outsexceedingoneweek'sdurationby

country 57

OCCUPATIONALHEALTHAND

SAFETY

G4-DMA DisclosureonManagementApproach 62 GA-LA5 Percentageoftotalworkforcerepresentedinformaljoint

management–workerhealthandsafetycommitteesthathelpmonitorandadviseonoccupationalhealthandsafetyprograms

64

G4-LA6 Typeofinjury&ratesofinjury,occupationaldiseases,lostdaysandabsenteeism,andtotalnumberofwork-relatedfatalities,byregionandbygender

64,48

G4-LA7 Workerswithhighincidenceofhighriskofoccupationaldiseases 24,64 G4-LA8 Health&safetytopicsinformalagreementswithtradeunions

TRAININGANDEDUCATION

G4-DMA DisclosureonManagementApproach 60 G4-LA9|<6> Averagehoursoftrainingperyearperemployeebygender&type 81 G4-LA10|<6> Programsforskillsmanagementandlifelonglearning 61 G4-LA11|<6> Percentageofemployeesreceivingregularperformanceandcareer

developmentreviews,bygenderandbyemployeecategory 60,81

DIVERSITYANDEQUAL

OPPURTUNITY

G4-LA12 Compositionofgovernancebodiesandbreakdownofemployeesperemployeecategoryaccordingtogender,agegroup,minoritygroupmembership,andotherindicatorsofdiversity

16-17

EQUALRENUMERATIONFORWOMENANDMEN

G4-DMA DisclosureonManagementApproach 58

G4-LA13|<6> Ratioofbasicsalaryandremunerationofwomentomen 58

SUPPLIERASSESSMENTFOR

LABOURPRATICES

G4-DMA DisclosureonManagementApproach 36 G4-LA14 Percentageofnewsuppliersscreenedusinglabourpractices We are working

towards including thisclause in the supplierselectioncriteria.

G4-LA15 Significantactualandpotentialnegativeimpactsforlabourpracticesinthesupplychainandactionstaken

None LABOURPRACTICESGRIEVANCE

MECHANISMS

G4-LA16 Numberofgrievancesaboutlabourpracticesfiled,addressedandresolvedthroughformalgrievancemechanisms

66

<6>OrangesymbolwithnumberindicateslinkagetoUNGC‘Tenprinciples”,200


92

SpecificStandardDisclosuresCATEGORY:SOCIAL SUBCATEGORY:HUMANRIGHTS

MaterialAspects

DMAandIndicators

Description Pageno.

Omission(ifany)

INVESTMENT

G4-DMA DisclosureonManagementApproach 21 G4-HR1|<2> Totalnumberandpercentageofsignificantinvestment

agreementsandcontractsthatincludehumanrightsclausesorthatunderwenthumanrightsscreening

21

G4-HR2 Totalhoursofemployeetrainingonhumanrightspolicies Thereisnospecifictrainingonhumanpoliciesbutasapartofallourtrainingprogramsweincludefundamentalsandimportanceofhumanrights.

NON-DISCRIMINATION

G4-DMA DisclosureonManagementApproach 57 G4-HR3|<2> Totalnumberofincidentsofdiscriminationandcorrectiveactions 58

ECONOMICPERFORMANCE

G4-HR4|<3> Operationsandsuppliersidentifiedinwhichtherighttoexercisefreedomofassociationandcollectivebargainingmaybeviolatedoratsignificantrisk,andmeasurestakentosupporttheserights

66

CHILDLABOUR G4-HR5|<5> Operationsandsuppliersidentifiedashavingsignificantriskforincidentsofchildlabour,andmeasurestaken

21

FORCEDORCOMPULSORY

LABOUR

G4-HR6|<4> Operationsandsuppliersidentifiedashavingsignificantriskforincidentsofforcedorcompulsorylabour,andmeasurestaken

21

INDIGENOUSRIGHTS

G4-HR8|<1> Totalnumberofincidentsofviolationsinvolvingrightsofindigenouspeoplesandactionstaken

21

ASSESSMENT

G4-HR9 Totalnumberandpercentageofoperationsthathavebeensubjecttohumanrightsreviewsorimpactassessments

21

MM5 Operationstakingplaceinoradjacenttoindigenouspeople’sterritories

21

SUPPLIERHUMANRIGHTASSESSMENT

G4-HR10|<2> Percentageofnewsuppliersscreenedusinghumanrightscriteria None

G4-HR11 Significantactualandpotentialnegativehumanrightsimpactsinthesupplychainandactionstaken

None

HUMANRIGHTSGRIEVANCE

MECHANISMS

G4-HR12|<1> Numberofgrievancesabouthumanrightsimpactsfiled,addressedandresolvedthroughformalgrievancemechanisms

21

SUBCATEGORY:SOCIETY

LOCAL

COMMUNITIES

G4-DMA DisclosureonManagementApproach 67 G4-SO1|<1> Percentageofoperationswithimplementedlocalcommunity

engagement,impactassessments,anddevelopmentprograms67-73

G4-SO2|<1> Operationswithsignificantactualorpotentialnegativeimpactsonlocalcommunities

74,45-46

MM6 Significantdisputesrelatingtolanduse,customaryrightsoflocalcommunitiesandindigenouspeople

74-75

MM7 Grievancemechanismsusetoresolvedisputes 75 Quantitativeinformationpertainingtothisindicatorwillbeprovidedinfuture.

ANTI-CORRUPTION

G4-DMA DisclosureonManagementApproach 18 G4-SO3|<10> Totalnumberandpercentageofoperationsassessedforrisks

relatedtocorruptionandthesignificantrisksidentified20

G4-SO4|<10> Communicationandtrainingonanti-corruptionpoliciesandprocedures

19

G4-SO5|<10> Confirmedincidentsofcorruptionandactiontaken 20 PUBLICPOLICY G4-SO6|<10> Totalvalueofpoliticalcontributionsbycountryand

recipient/beneficiary34

ANTI-COMPETITIVEBEHAVIOUR

G4-SO7 Totalnumberoflegalactionsforanti-competitivebehaviour,anti-trust,andmonopolypracticesandtheiroutcomes

18-20

COMPLIANCE G4-SO8 Significantfinesfornon-compliancewithlawsandregulations None MM9 Siteswhereresettlementstookplace,thenumberofhouseholds

resettledineach,andhowtheirlivelihoodswereaffectedintheprocess.

76

<1>,<2>,<3>,<4>,<5>,<10>OrangesymbolwithnumberindicateslinkagetoUNGC‘Tenprinciples”,2000


93

SpecificStandardDisclosures SUBCATEGORY:SOCIETY MaterialAspects DMAand

Indicators Description Page

no.Omission(ifany)

CLOSUREPLANNING

G4-DMA DisclosureonManagementApproach 55 MM10 Numberandpercentageofoperationswithclosureplans 55

GRIEVANCE

MECHANISMSFORIMPACTSONSOCIETY

G4-SO9 Percentageofnewsuppliersscreenedforimpactsonsociety Weareworkingtowardsincludingthisclauseinthesupplierselectioncriteria

G4-SO10 Significantactualandpotentialnegativeimpactsonsocietyinthesupplychainandactionstaken

None

G4-SO11 Numberofgrievancesaboutimpactsonsocietyfiled,addressedandresolvedthroughformalgrievancemechanisms

None

SUBCATEGORY:PRODUCTRESPONSIBILITYCUSTOMERHEALTH&SAFETY

G4-PR2 Totalnumberofincidentsofnon-compliancewithregulationsandvoluntarycodesconcerningthehealthandsafetyimpactsofproductsandservicesduringtheirlifecycle,bytypeofoutcomes

None

PRODUCTANDSERVICELABELING

G4-PR5 Resultsofsurveysmeasuringcustomersatisfaction Noformalsurveyshavebeenconductedbyushowever,wecontinuouslyengagewithourcustomersandimplementthefeedbackreceived.

MARKETINGCOMMUNICATIONS

G4-PR6 Saleofbannedordisputedproducts 48 G4-PR7 Totalnumberofincidentsofnon-compliancewithregulationsand

voluntarycodesconcerningmarketingcommunications,includingadvertising,promotion,andsponsorship,bytypeofoutcomes

None

COMPLIANCE G4-PR9 Monetaryvalueofsignificantfinesfornon-compliancewithlawsandregulationsconcerningtheprovisionanduseofproductsandservices.

37-38


94

AIDS AutoImmunodeficiencySyndrome AR AbsenteeRate ATM AutomatedTellerMachineBCCL BharatCokingCoalLimitedBCML BhubaneswariCoalMiningLimitedBDO BlockDevelopmentOfficerBEML BharatEarthMoversLimitedBOM BuildOperateMaintainBT BillionTonneBTI BelpaharTrainingInstituteCBA CoalBearingAreasCCL CentralCoalfieldsLimitedCCTV Closed-circuitTelevisionCDD CoalDelayDetonatorsCED CopperElectricDetonatorCESU CentralElectricitySupplyUtilityofOrissaCGM ChiefGeneralManagerCHP CoalHandlingplantCIAL CoalIndiaAfricanaLimitadaCIL ConfederationofIndianIndustriesCIL CoalIndiaLimitedCIMFR CentralInstituteofMiningandFuelResearchCISTEA CoalIndiaScheduleCaste/ScheduledTribeEmployeesAssociationCMAL CoalMinesAuthorityLimitedCMC ContractManagementCellCMD ChairmancumManagingDirectorCMPDI CentralMineplanningandDesignInstituteCO2 carbonDioxideCPA CriticallyPollutedAreaCPCB CentralPollutionControlBoardCPSE CentralPublicSectorEnterpriseCPSI CoalPreparationSocietyofIndiaCr CroreCRO ChiefRiskOfficerCSR CorporateSocialResponsibilityCVO ChiefVigilanceOfficerD.G. DieselGeneratorDGMS DirectorateGeneralofMinesSafetyDGPS DifferentialGlobalPositioningSystemDPE DirectorateofPublicEnterprises

GLOSSARY


95

DPR DetailProjectReportEC EnvironmentalClearanceECL EasternCoalfieldsLimitedE&M ElectricalCoalfieldsLimitedETP EffluentTreatmentPlantFC ForestClearanceFSA FuelSupplyAgreementFY FinancialYearGCV GrossCalorificValueGENXT GenerationNextGHG GreenHouseGasGJ GigaJoulesGM GeneralManagerGovt. GovernmentGPS GlobalPositioningSystemGRC GrievanceRedressalCellGRI GlobalReportingInitiativeGVTO GovernmentOfficerHa HectareHBI HirakhudBundiaInclinedHEMM HeavyEarthMovingMachineryHOD HeadofDepartmentHPC HighPowerCommitteeHQ HeadQuarterHR HumanResourcesHRC HingirRampurCollieryHRD HumanResourceDevelopmentHSD HighSpeedDieselICC InternalComplaintsCommitteeIDCO InfrastructureDevelopmentCorporationIED IndustrialEngineering&DesignIEM IndependentExternalMonitorsIIM IndianInstituteofManagementIIT IndianInstituteofTechnologyIME InitialMedicalExaminationIMS IntegratedManagementSystemINR IndianNationalRupeeIR RatesofInjuryISO InternationalStandardsOrganisationISTD IndianSocietyofTrainingandDevelopmentIWSS IntegratedWaterSupplySchemeJCC JointConsultativeCommitteeKL KilolitreKm Kilometre


96

Km2 SquareKilometreKVAR Kilovolt-AmpereReactivekWh KilowattHourL LitresL&R LandandRevenueLDR LostDayRateLED LightEmittingDiodeLHD LoadHaulDumperLtd Limitedm3 CubicMetreM.Cu MillionCubicMeterM.Te MillionTonneMBPL MahanadiBasinPowerLimitedMCL MahanadiCoalfieldsLimitedMDTP MineDischargeTreatmentPlantMEETI MiningEngineering&ExcavationTrainingInstituteMGMI MiningGeologicalandMetallurgicalInstituteofIndiaMGR MerryGoRoundMIMSR MahanadiInstituteofMedicalScienceandResearchMINREM InstituteofNaturalResourcesandEnergyManagementmm Millimetremm3 MillionCubicMetre M&M MaterialsManagementMOC MinistryofCommerceMoC MinistryofCoalMOEF MinistryofEnvironment&ForestMoU MemorandumofUnderstandingMOSPIMinistryOfStatisticsandProgramImplementationMP MadhyaPradeshMEME Micro,SmallandMediumEnterprisesMT MillionTonneMTI ManagementTrainingInstituteMTY MillionTonneperYearMW MegawattNABL NationalAccreditationBoardforTestingandCalibrationLaboratoriesNCDC NationalCoalDevelopmentCorporationNCL NorthernCoalfieldsLimitedNCWA NationalCoalWageAgreementNGO Non-GovernmentalOrganisationNIOS NationalInstituteofOpenLearningNIT NationalInstituteofTechnologyNoC NoObjectionCertificateNoX OxidesofNitrogenNPTCPL NeelanchalPowerTransmissionCompanyPrivateLimited


97

N&RNominationandRemunerationNSCH NehruShatabdiCentralHospitalOASME OrissaAssemblyofSmallandMediumEnterprisesOB OverBurdenOC OpenCastOCP OpenCastProjectODR OccupationalDiseaseRateOGT OilandGreaseTrapsOHSAS OccupationalHealthandSafetyAssessmentSeriesOITDS OperatorIndependentTruckDespatchSystemOMS OutputperManshiftPAFs ProjectAffectedFamiliesPAP ProjectAffectedPeoplePDPT PostDiplomaPracticalTrainingPFCC PowerFactorCorrectionCapacitiesPGPT PostGraduatePracticalTrainingPIS ProductivityImprovementSchemePLRCC ProjectLevelRehabilitationandResettlementCommitteePM ParticulateMatterPME PeriodicMedicalExaminationPMS PerformanceManagementSystemP&P Project&PlanningPPE PersonalProtectiveEquipmentPRP PerformanceRelatedPayQC QualityControlRCCC RegionalCoalConsumersCouncilR&D ResearchandDevelopmentR&R ResettlementandRehabilitationREC RenewableEnergyCertificateRFID RadioFrequencyIdentificationRLS RapidLoadingSystemRMC RiskManagementCommitteeRPDAC Rehabilitation&PeripheralDevelopmentAdvisoryCommitteesSAIL SteelAuthorityofIndiaLimitedSA8000 SocialSCOPE StandingConferenceofPublicEnterprisesSC/ST ScheduledCaste/ScheduledTribesSD SustainableDevelopmentSDL SideDischargeLoaderSECL SouthEasterncoalfieldsLimitedSox OxidesofSulphurSPCB StatePollutionControlBoardSPV SpecialPurposeVehicleS&R Safety&Rescue


98

SSI SmallScaleIndustriesSTP SewageTreatmentPlanttco2e TonnesofCarbonDioxideEquivalentTe TonneTISS TataInstituteofSocialSciencesTPM TotalParticulateMatterUCCI UtkalChamberofCommerceandIndustryLimitedUG UndergroundUDM UniversalofDrillMachineUHF UltraHighFrequencyUNGC UnitedNationsGlobalCompactVRS VoluntaryRetirementSchemeVTS VehicleTrackingSystemW WattWCL WesternCoalfieldsLimitedWETP WaterEffluentTreatmentPlantWIPS WomeninPublicSectorWTPs WaterTreatmentPlants


99

FeedBackForm:MCL’sSDREPORT2016-17.

Wevalueyourfeedbackasithelpsustoimprovewhatwedoandhowwecommunicate.Pleasehelpusbytakingafewminutestocompletethisfeedbackform.

1. Wereyouabletofindtheinformationyouneeded?YES/NO

2. Doyouthinkthereportcoveredalloftheimportantissuesrelatingtosustainability?YES/NO

Arethereanyspecificissue(s)youwouldliketoseecoveredinourSustainabilityReport?

Pleasespecify

____________________________________________________________________________

3. WhichsectionsofourSustainabilityReportwereyoumostinterestedin?(Pleasetickallthatapply)

OurStrategySocialPerformanceEnvironmentPerformanceEconomicPerformanceAnyother,pleasespecify

4. Whichofthefollowingbestdescribesyou?

EmployeeStakeholderCustomerIndustrySupplierStudent

NGO/CharityOther(pleasespecify)

5.Clarity of information provided in the report.

High Medium Low

6.Qualityofdesignandlayoutofthereport:Excellent GoodAverage Poor

7.WouldyouliketotellusanythingelseaboutsustainabilityatMCL?

Name: ______________________ Designation: _________________ Organization: ________________ E-mail: ______________________

Mahanadi Coalfields Ltd., sincerely thanks you for your valuable feedbac

You may also mail /email your feedback to this address: GM (Environment), Mahanadi Coalfields Ltd Email: [email protected] Ph: +91 6632113769


100

RegisteredOffice:JagrutiVihar,Burla,Sambalpur,Odisha,India-768020.

EnvtDept|HQ-2016-17

PublishedinJune,2018

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