WCL EXCEEDS TARGET OF COAL PRODUCTION

Western Coalfields Limited (WCL) has not only achieved its Annual Action Plan (AAP) target of 42 million tonnes for the financial year 2006-07, ended 31st March 2007, but also exceeded it by 1.212 million tones. The total production during the year was 43.212 Million Tonnes, the highest ever WCL has produced in its history and more than WCL is supposed to achieve in 2008-09.

 

WCL has limited potential in terms of coal reserves (only 4.6% of total national reserves) and that too deep-seated and in small patches, giving little scope for development of large capacity mines. Overburden ratio in opencast mines is very high. 103% achievement of coal production target during the year despite these inherent limitations is attributable to the dedicated hard work of its employees, co-operation of trade unions and steering committee, state govt. of Maharashtra and Madhya Pradesh and neighbouring community around mining areas.

 

WCL is the only company in Coal India Limited which has not only achieved its Underground annual target, but surpassed it by 0.15 Lakh Tonnes. 2 (two) underground mines viz. Chhattarpur-I and Mana UG came to profit from loss during 2006-07, bringing the total number of profit making underground mines to 11.

 

Total despatches (off-take) of coal during the year under review were 42.17 million tonnes as against the target of 42 million tones.

 

Productivity (out put per manshift) during the year was 2.49 tonnes against the target of 2.44 tonnes.

 

The estimated turnover of the company during the year was Rs 4947 Crores against budgeted Rs 4736 crores. The net profit for the year is expected to be substantially higher than the budgeted Rs 620 Crores.

 

The total sales realization during 2006-07 was approximately Rs 5136 Crores. The total outstanding dues with customers were brought down from Rs 394 Crores as on 01.04.2006 to Rs 214 Crores as on 01.04.2007.

 

WCL has maintained its status with number one position amongst tax payers in Vidarbha Region. The company has paid Rs 593 Crores by way of corporate taxes to Central Govt. during 2006-07. The company contributed to the state/central exchequer around Rs 620 Crores by way of royalty and taxes during 2006-07.

 

DISTINCTIVE ACHIEVEMENTS:

  1. WCLs excellent physical and financial performance has been widely recognized and the companys cap was decorated with several coveted feathers during 2006-07.
  2. WCL has been conferred MINIRATNA category-I status by the government of India.
  3. Dun & Bradstreet India (D&B), a leading provider of business information in India and worldwide, has ranked WCL 2nd as per total income in the Mining sector in its 2006 edition of India's Top 500 Companies.
  4. Greentech Excellence Award 2006 was given to WCLs ISO 14001 accredited Padmapur OC mines for outstanding achievements.
  5. ISO 14001 accredited to Umrer OCP on 20.03.2007.
  6. WCLs Bi-monthly Hindi magazine Khanan Bharati, was awarded prestigious Rashtriya Rajbhasha Patrika Shield Samman. Companys progress in implementing Rajbhasha Policy Rules and popularizing use of Rajbhasha Hindi in day-to-day work has been recognized from time to time by different National Institutions and awards have been given by them.
  7. Six coal mines of the company viz, Shobhapur UG, Pathakhera No. I UG, Silewara UG, Sarni UG, Chanda Rayatwari UG and Durgapur OCP bagged the National Safety Awards (Mines).
  8. As its contribution to road infrastructure development in and around its coal mining areas, WCL completed construction of a 90 metre high flood level double-lane road bridge on Amb river connecting Umrer and Makardhokra Collieries at its Umrer Area at a cost of Rs 2.42 Crores in a record time of nine months against stipulated time of 12 months. Foundation stone for construction of another 200 metre double-lane bridge at a cost of Rs 3.60 Crores on Tawa River in Pathakhera area of Madhya Pradesh was also laid during the year.
  9. Tawa-2 UG mine, having capacity of 0.39 million tonnes was started six months ahead of schedule. Foundation for 6 lakhs tonnes capacity Navin kunada phase-II OC mine in Majri Area was laid in the month of May 06 after resolving employment and rehabilitation problems with the help and co-operation of local legislator and state authorities.

QUALITY: There has been overall improvement in quality coal supplies to power sector which accounts for nearly 80% of total despatches. WCL is supplying 100% sized coal and about 99.36% after weighment. The company has entered into long-term coal supply agreement with all the major power sector consumers viz. MAGENCO, MPPGCL and KPCL, etc. 100% coal despatched is covered under joint/third party/agreed sampling.

 

SAFETY: Efforts to improve safety standards continued unabated. Risk assessment and safety audit of mines were carried out and their recommendations implemented. Safety awareness programmes, safety conferences, safety drives are being organized regularly to increase safety awareness among the workers. In addition to regular basic and refresher training, special safety training programmes are conducted for both departmental and contractual workers engaged in opencast mines. The fatality rate per million tonne output during the calendar year 2006 came down to 0.30 from 0.43 five years ago in 2001.

 

MANPOWER RATIONALIZATION: The manpower strength of WCL decreased by 1779 due to manpower rationalization measures. 546 workers took VRS during the year against the target of 300. The total manpower strength in WCL as on 1.4.2007 is 65,599 as against 67,378 as on 1.4.2006.

 

WELFARE: The company provided Rs 50 crores in revenue welfare budget during the year 2006-07 to further improve standard of living of its employees.

 

At present 63.8% of employees are covered by housing facility and a population of 3,20,790 is covered by water supply schemes. The company has 11 hospitals with 710 beds to provide health care facility to the employees. Special thrust during the year was given on qualitative improvement in health care services for workers. During the year 2006-07, new medical equipments like ECG machines, computerized spirometer, auto refractrometers, operating microscopes, phaco unit, blood biochemistry analyzer & radio surgery unit worth Rs 28.50 lakhs were added. Procurement of new equipments and gazettes worth Rs 1.04 Crores is in pipeline. Bhalar dispensary in Wani North Area is being upgraded to six-bedded hospital with required infrastructure. WCL medical department has already formed a core group of doctors consisting of surgeons, gynaecologists and anaesthesists who visit different areas from time to time to undertake major surgical operations. So far, the core group has successfully operated 288 major cases at 25 camps organized from time to time in different area hospitals. Besides catering to health care needs of employees and their dependant family members, WCL is also extending certain facility to nearby rural population as a part of community health programme. Blood donation camps, family planning camps, eye camps, diabetes detection camps, etc. are organized under this programme.

 

WCL employees are covered by Group Gratuity Scheme. The company has streamlined expeditious settlement of pension claims in co-ordination with CMPF authorities to ensure that pension claims are processed and sent to CMPF office on the day of retirement of respective employees. 100% pension claims received so far have been settled and sent to CMPFO.

 

Mahila Mandals constituting wives of employees and working women at the Headquarters as well as in the areas took active part in organizing social and cultural programmes.

 

COMMUNITY DEVELOPMENT: During the year under review, the company provided budgetary allocation of Rs 4.32 crores on Community Development, Special Component Plan and Tribal Sub-Plan. The money was well spent on development of nearby communities by constructing approach roads, drinking water facility, street light, assistance to educational institutions, health care, etc.

 

ENVIRONMENT: As a corporate citizen, WCL is quite conscious of its responsibility towards protection and improvement of environment and pollution control in and around its Areas. Environment protection activities include development of green belt around mining Areas, pollution control through implementation of environment management plans, regular monitoring of environmental parameters and annual audit, technical and R&D studies, eco-development work for local community and reclamation of mined out Areas for gainful utilization. WCL has 22 workshop effluent treatment plants and 7 domestic effluent treatment plants in its different Areas. Under the afforestation programme, 1.59 Lakh saplings were planted during the year in its mining Areas with this total number of tree saplings planted in the last five years is 26 Lakhs.

 

PROJECTS: In order to maintain its present level of production and then increase it to 45 million tonnes by the terminal year of XI plan, 23 projects are ongoing with ultimate production capacity of 14.92 million tonnes at a capital outlay of Rs 904.28 crores. 32 new projects have also been identified for development during the XI Plan period (2007-12). The ultimate production from these projects will be 28.61 million tonnes at an anticipated capital outlay of Rs 2809.36 crores. Of these, two projects viz Gokul OC (capacity 1.0 MT) and scheme for extension of Ghughus OC (capacity 1.50 MT) have already been approved during 2006-07.

 

WCL has taken up eight projects viz Adasa UG, Kolgaon OC, Durgapur Extn. (deep) OC, Waghoda UG, Bhatadi OC Expn., Junad deep OC, Chikalgaon OC, Chinchala OC on cost plus basis with MAHAGENCO. Agreement for Adasa and Kolgaon has already been concluded. Coal produced from these mines are being supplied to MAHAGENCO. Agreement is likely to be finalized shortly for Durgapur Extn., Waghoda, Bhatadi Expn.and Junad deep. The Draft Report for cost plus agreement for Chikalgaon OC and Chinchala OC is with Mahagenco for examination.

 

Added thrust is being given to increase production, productivity and safety from underground mines. WCL has planned to open underground mine of 3 million tonnes capacity with Long wall technology at Murpar in Umrer Area. Administrative approval for inviting global bid has already been granted by WCL Board.

 

WCL has introduced Continuous Miner Technology in its Tandsi underground mine. This technology is working satisfactorily for last three years. Now, this technology is under implementation at Kumbarkhani mine. Letter Of Intent (LOI) has already been issued and production will start shortly.

 

The company proposes to introduce continuous miner technology in another six mines viz Sarni Exten, Saoner-1, Mauri and Nandan (Dhau-North) and also in future mines viz. Dhankasa and Board Administrative approval for inviting global bids has already been obtained from WCL Board.

 

Man Riding system has been installed in Tandsi Mine to reduce worker fatigue and exertion and thereby to have better productivity. This system is in its advanced stage of installation in Mauri mine of Kanhan Area. It is also going to be introduced in another five UG mines viz. Shobhapur, Tawa-I, Sarni, Saoner-I and Kumbarkhani mines.

 

As per annual action plan, WCLs production target for the year 2007-08 is 42.40 million tonnes.