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Report No. 9 of 2011-12 – Performance Audit of Coal India Limited Corporate Social Responsibility

Date on which Report Tabled:
Wed 07 Sep, 2011
Date of sending the report to Government
Government Type
Union
Union Department
Commercial
Sector Power & Energy

Overview

Coal India Limited (CIL) is one of the largest coal producing companies in the world with a total production of 431.32 million metric tonnes of coal in 2010-11. CIL has eight wholly owned subsidiaries.1 As of March 31,2011, it operated 470 mines in 21 major coalfields across eight states in India, including 164 open cast mines, 275 underground mines and 31 mixed mines (includes both open cast and underground mines).

Coal mining raises serious environmental and social concerns, including soil erosion, dust, noise and water pollution, and impact on local biodiversity. The environmental and social issues associated with coal exploration and production such as displacement are of special nature as the coal reserves are located in river basins such as Damodar, Barakar, Sone, Wardha, Bramhani, Mahanandi, etc. which are rich in forest cover and are habitats of precious wildlife and indigenous tribal communities. CIL a nd its su bsid iaries being profit making companies have sufficient resources to discharge its responsibilities towards environment management, resettlement and rehabilitation of displaced persons, community and peripheral development.

The performance audit of the CIL and its subsidiaries was conducted with a view to assess whether the companies were able to fulfill their corporate social responsibilities (CSR) in an effective and efficient manner towards environmental protection, safety requirement, occupational health of the workers and community and peripheral development. A total of 18 open cast mines, eight underground mines and four washeries in seven coal producing subsidiaries, selected on random sampling; were reviewed in audit.

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