Coal India Ltd.

Coal India (CIL) the coal mining Maharatna PSU has signed the memorandum of understanding (MoU) with its administrative ministry - Ministry of Coal - for its key performance areas for the fiscal 2012-13. The Secretary to Government of India, Ministry of Coal and CMD of the company has inked the document in Delhi on April 23, 2012.

As per the MoU for the fiscal 2012-13, CIL’s targeted production and coal off-take have been fixed at 468.74 million tonnes (Mts) and 474.70 Mts respectively for attaining an 'Excellent' rating. In 2010-11, CIL was rated ‘Very Good’, because of various constraints for starting new projects in time and heavy monsoon proved detrimental for achieving desired level of coal production.

To attain the targeted off-take for 'excellent' rating, CIL has sought 193.3 rakes/day for 2012-13 against the average availability of 161.9 rakes/day in 2010-11 and about 168 rakes/day during 2011-12. Average growth of coal movement through Rail was only around 3% during the last 3 years whereas CIL has envisaged a growth of around 12.6% through rail for achieving above target.

Target for expenditure on R&D activities for 2012-13 as per DPE's guideline has been kept 1% of PAT of previous year (around Rs 100 crore). In case of CSR, target for expenditure has been set as 0.5% of PAT of previous year for CIL stand alone. In case of subsidiaries companies of the coal major, separate target has been set depending on their profits as per DPE's guideline.