The document outlines various challenges faced by Coal India Ltd. (CIL), such as coal supply shortages, infrastructural bottlenecks, and environmental compliance issues. It proposes solutions including improved transport logistics through containerization, utilizing inland waterways, and engaging in joint ventures with power producers for efficient coal distribution. Additionally, it emphasizes branding and stakeholder engagement to enhance trust and attract investment in CIL's operations.

1. COAL INDIA CASE STUDY
By:
Team Learn2Do

2. Land Acquisition
Environmental Clearance
Availability of coal in few states
Bottlenecks in logistics infrastructure- Roads and Ports
Naxalism in East and East-Central parts
Inflexibility of Railways in accommodating variable rakes
Piled up coal stock
Problems Faced

3. Demand
Supply XI Plan
2011- Need to be Met by
2012 CIL
XI plan (2011- XI Plan
(in Million Tonnes) 12) Projected reality
Power utilities 483 100% 483
Power Captive 57.06 75% 42.8
CIL 520.5 450 Cement 31.9 75% 23.92
SCCL 40.8 40.8 Sponge iron &
others 90.64 75% 67.98
Total non Coking 662.6 617.7
Others 118.7 50 Coking Steel 68.5 75% 51.37
Total 731.1 669.07
Supply 680 540.8
Total 680 540.8
Shortage 51.1 128.27
Amount to be
Demand-Supply Gap imported

4. SOLUTIONS

5. • Utilize flat bed Collapsible containers for
coal transport on railways
• It can be directly transported on a truck for
further transportation from railway yard
for door step delivery
• Collapsible containers can save cost while
returning empty containers
• Lead time to empty coal from train gets
reduced
CONTAINERIZATION

6. Rail Transport COLTainer: Collapsible container
• Traditional • Hybrid Model
• Coal Movement • 40 feet – Carrying capacity
Railway Rail 27 tons
Pitheads
Siding Cart
• Carrying capacity 50-55 • 2 stacked upon one another
ton/wagon • Can be directly loaded on
• Same process for unloading trucks from rail/port
• Need 200 wagons/day • Faster turn around time
getting only 170

7. CHANNELIZE INLAND
WATERWAYS

9. • India has about 14,500 km of navigable waterways
• Nearly 3,600 km are navigable by larger vessels.
• Just about 2,000 km are used currently.
• One barge ≡15 rail wagons/60 trucks.
IWT standard Barge Rail Truck
Operating Cost/tonne /mile 1 cent 2.5 cent 5.3 cent
kms /tonne /3.8 ltr 827km 325km 95km
Inland Waterways

10. POWER PLANTS
TO UTILIZE STOCK PILE

11. Production concentration

12. Stockpile till July 2011 -70 Million
tonnes accounts to 16% of production
Constantly rising due to lack of
transport facilities.
Get into JV with NTPC to install new
power plants in states such as
Jharkhand, Orissa and Chhattisgarh
These 3 account for 60% of CIL production.
Lack infrastructure facility to transport coal
Power Plants near Coal Mines

14. CAPACITY UTILIZATION

15. Total production The Output per man
2010-2011(million
Company tonnes) OMS
shift(OMS) is really low for
ECL 30.8 1.6 some subsidiaries of CIL.
BCCL 29.01 2.09
CCL 47.52 3.88 This indicates Poor manpower
NCL 66.25 13.52 utilization or Very low
WCL 43.65 2.65 production
SECL 112.71 6.47
MCL 100.28 15.37 The OMS can be improved by
NEC 1.1 2.16 either increasing the mine
utilization or cutting the cost by
CIL 431.32 4.73
reducing the manpower.
Capacity Utilization

16. EXPLORE , EXPLORE

17. • Total coal resources in
Indonesia stand at
93.4 billion tonnes
• Quality:
Low 25%
Medium 60%
High 15%
Major Exporters: South Africa, Australia, Indonesia, Columbia, Mozambique
Mine Acquisition from Indonesia

18. • Extract coal from 18 abandoned underground mines
with owned by three of its subsidiaries in partnership
with private players.
• An approximate reserve of 1.647 billion tonnes of coal.
• Underground mining would be revived in 6 abandoned
mines of Eastern Coalfields, 8 mines of Bharat Coking
Coal, and 4 mines of Central Coalfields.
• No new environment clearance is needed
Abandoned Mines

19. INTRODUCTION OF ERP

20. Final Site
Roads/
railways/
Roads/ ports Sidings
railways/ports
CIL Coal
Mining Site
Suppliers
Integrated Logistics System

21. Why?
Assist in
Improve workflow and Locating bottlenecks is
analyzing, decision
monitoring simpler
making and scheduling
Simplify dissemination of
Networking between CIL Storage of
information to
and constituent units data, analysis, and
public, customers and
across the supply chain handling of databases
make it interactive
Helps tackle delays
Can provide dynamic due to natural
More transparent system
data, scenario of the
demand and supply in
between different calamities or other
subsidiaries challenges posed by
different areas and overall
whether
Integrated Logistics System

22. Door to Door Delivery

23. Coal India is responsible for transport from:
Pithead to the Loaded on
railways sidings to the
wagons
After this point CIL can Outsource transportation of the stock
• Rope in a Private Player to take care of the transportation from the
wagons to the industry sites
• Pay some percentage of the revenue generated from the order
• Demand is huge and supply is frequent, hence lots of profits involved
• Set terms and conditions of the deal and strict standards of
management, performance
• Make the end users aware about this service and initiate the
communication between the transport provider and the end user
Transportation Outsourcing

24. Brand CIL
more than just
PSU or Maharatna

25. Why?
• Attract best of the brains from the society
• Instil a sense of pride in association
• Increased Trust and Reliability
• Attracting more private players to associate
• Help in acquiring sizeable equity stakes in mines abroad
to have long term relationship
• More people buying IPO of CIL
BRAND CIL

26. Segments:
• Internal Stakeholders – Employees, Management
• External Stakeholders - value chain partners
(customers, suppliers),communities, govt.
agencies, regulators, foreign players
BRAND CIL

27. BRAND CIL

28. • Print Ads in the newspaper on a special occasion
How?
• Celebrating Glory of CIL/ Celebrating Occasion
• Mention scale, potential, achievements, developments, about IPO
What? • Motto of CIL
• Increase awareness about CIL
• Catching interest of people
Why? • More people buying IPO of CIL
BRAND CIL

29. • Sending brochures of CIL annually to prospective customers
How?
• Talking about the new developments, deals and improvements in the
processes
• Revenue generated and assets, spread and other associations
What? • Price offered and quality of goods and services provided
• Subtly pursuing them to associate with the company
• Instil a sense of pride in association
• Attracting more private players to associate
Why?
BRAND CIL

30. • Ads/Videos endorsing good working conditions and culture in such industries
• Acquiring a motto “ worker’s safety, our responsibility”
How?
• Talking about human resource ,strength of any company
• Responsibility towards employees well being and safety being the duty of
every enterprise
What? • CIL providing safety, employment, development to naxal /poverty stricken
regions
• Improves the social image and standing of CIL
• People having a more positive attitude towards the company as a whole
• Increased Trust and Reliability
Why? • Sense of pride while associating with the company
BRAND CIL