1.

INDUSTRY STRUCTURE AND DEVELOPMENTS:

Bharat Coking Coal Limited (BCCL) is a Public Sector Undertaking engaged in
mining of coal and allied activities. It occupies an important place in as much as it
produces bulk of the coking coal mined in the country. In BCCL, coking coal
forms almost 85% of the total coal production. Coking Coal in BCCL is mainly of
two types- Prime Coking Coal (PCC) and Medium Coking Coal (MCC) having
low volatile matter. In the FY 2017-18, BCCL produced 23.30 MTe of Coking
Coal and 9.30 MTe. Of Non-coking Coal.
SWOT Analysis of BCCL
Strengths
 Ability to provide coal at less than import parity price
 Only source of prime coking coal having secured market
 Concentration of coal resources within a radius of 40 km
 Skilled and trained manpower having good work culture
 Existence of best quality coal in upper stratum and inferior quality coal in the bottom
stratum
 Exploration is 100% hence proper planning can be made
 Ongoing action for diverting structures over the coal bearing area through Master
plan
 Upper section developed. Once land available, superior grade coal can be mined out
easily
 Reduction in Manpower through natural wastage will go on reducing loss
progressively
 Favorable geographical location
 Increasing consciousness among the employees and trade unions about the financial
health of the Company leading to positive mindset
Weaknesses
 Old mines operating for more than 100 years
 Coal Bearing areas densely populated, mostly by unauthorized habitants causing
hindrance in smooth progress of mining activity
 A large number of inherited small UG mines not readily amenable to mechanization
 Presence of multi-seam workings affected by fire
 Poor dispatch capacity
 Constraints posed by trade unions in achieving rational redeployment of manpower
Opportunities
 Readily available un-exhaustive market compared to the international market for a
long period
 Prime coking coal released on implementation of master plan will have the
potentiality of earning foreign exchange through export of prime coking coal after
meeting the domestic requirement, if government policy so permits
 JVs with PSUs/Pvt. Players for long term capital intensive projects
 Market condition of coking coal in steel sector is favorable as the price in international
market is going up.
Threats
 Inability to establish physical possession of land acquired under LA Act for mining
purpose
 Any delay in approval and execution of Master Plan may lead to national calamity
endangering the lives and properties as well as operation of the company for a long
period.
3. SEGMENT-WISE OR PRODUCT WISE PERFORMANCE
 During the year 2017-18, BCCL coal production was 32.607Mte. The growth over the
year 2016-17 was (-) 11.96%.The coal off-take during the year was 33.327Mte with a
negative growth of 4.47% over the previous year.
 The overburden removal during the year was 110.466 M.m .The productivity in terms
of output per man shift (OMS) was 3.19 Te. against 3.57Te achieved during the year
2016-17, thereby recording a growth of (-) 10.64%.
 The turnover of the Company recorded an all-time high of ₹11505,53 Crores. Supply of
washed and direct feed coal to Steel Sector is 8.03 lakh tonnes in 2017-18 against
12.32 lakh tonnes in 2016-17, representing a growth of (-) 34.77% over the previous
year.
4. OUTLOOK
 Diversification is on anvil. BCCL is trying of explore opportunities in areas of
clean energy like, CBM/CMM and Solar power generation.
 Four coal Blocks have been allotted to BCCL. The blocks are, 1) Pirpainti 2)
Mandar Parvat, 3) Dhulia North and 4) Mirzagaon. These blocks will go a long
way to enhance production of BCCL as a whole subsequently strengthening the
financial status too of the company.
 Six number of washeries are in different stages of installation. Once commissioned
these washeries will contribute to the financial profitability of the Company.
5. RISKS AND CONCERNS
 Mine accidents, mining-related diseases
 Power Sector consumers generally prefer/ demand lower grade non coking coal which
is available at lower price. Any increase in price of LVMC coal in power sector may
compel the purchaser to opt for lower grade non coking coal from elsewhere and will
create difficulty of marketing before the Company. Therefore, the challenge before
BCCL is to supply coking coal to power houses without losing further on price front.
 Competition in domestic as well as international market