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Standard Operating
Procedure (SOP)
for Effective Coal
Administration
2019
Directorate of Geology & Mining, Chhattisgarh
Page 1 of 46
Abbreviations
Abbreviation Full Form
Act The Mines and Minerals (Development and Regulation) Act, 1957
AD Additional Director
AMO Assistant Mining Officer
BIS Bureau of Indian Standards
CCO Coal Controller's Organization
CCR Colliery Control Rule, 2004
CHP Coal Handling Plant
CIMFR Central Institute of Mining and Fuel Research
CSA Coal Supply Agreement
CSIR The Council of Scientific and Industrial Research
CSN Crucible Swelling Number
DD Deputy Director
Dmf dry moisture free
DGM/ DGM CG Directorate of Geology & Mining, Government of Chhattisgarh
FSA Fuel Supply Agreement
GCV Gross Calorific Value
IBM Indian Bureau of Mines
IICT- Hyderabad Indian Institute of Chemical Technology, Hyderabad
IIEST Indian Institute of Engineering Science and Technology, Shibpur
IITs Indian Institute of Technology
IMMT Bhubaneshwar Interscience Institute of Management & Technology, Bhubaneswar
IS Inherent Sulphur
JD Joint Director
LTGK Low Temperature Gray King Assay
MMDR Act The Mines and Minerals (Development and Regulation) Act, 1957
MO Mining Officer
NA Nominated Authority
NABL National Accreditation Board for Testing & Calibration Laboratories
NML Jamshedpur National Metallurgical Laboratory, Jamshedpur
RH Relative Humidity
ROM Run off Mine
SOP Standard Operating Procedure
VM Volatile Matter
P a g e 2 | 46
Contents
1. Background ........................................................................................................................................ 3
2. Application of the SOP ..................................................................................................................... 4
3. Applicability ....................................................................................................................................... 4
4. Objectives of the SOP ....................................................................................................................... 4
5. Procedure for categorization of coal in compliance with Rule 4 of CCR .................................... 5
5.1 Categorization of coal/ declaration of grade [Rule 4 of CCR2004] ............................................... 7
5.1.2 Quality Surveillance to be conducted by DGM .................................................................................... 8
5.1.3 Annual Grade Approval ..................................................................................................................... 8
5.2 Revision and dispute management ................................................................................................. 9
5.2.1 Revision of annual grades/quality ....................................................................................................... 9
5.2.2 Revision of classification of coal seams ............................................................................................ 10
5.2.3 Dispute Management between supplier of coal and purchaser (Under rule 4(5) of CCR, 2004 ...... 11
5.2.4 Dispute management between Mine Owner and State Government................................................ 12
5.2.5 Time Frame for submission of application ........................................................................................ 13
5.2.6 Organization structure and Responsibility Sharing ........................................................................... 14
5.3 Quality Surveillance in compliance with Rule 7 of CCO ............................................................. 17
5.3.1 Sampling of Coal ................................................................................................................... 17
5.3.2 Sample Preparation ................................................................................................................... 21
5.3.3 Procedures for Lab Analysis of Coal Samples .................................................................................. 22
5.4 Monitoring and review of returns filed & information submitted in compliance with Rule 5 of
CCO ............................................................................................................................... 22
5.5 Monitoring of Notice of suspension or closure in Compliance with Rule 10 of CCO .............. 24
5.6 Framework for inspection of Collieries in compliance with Rule 12 of CCR ............................ 26
6. Annexures ........................................................................................................................................ 27
7. Review of existing industry practices followed by Coal India Limited (CIL) and its subsidiaries
in terms of fuel supply agreement (FSA) ............................................................................ 38
7.1 Quantity ............................................................................................................................... 38
7.1.1 Annual Contracted Quantity (ACQ): .................................................................................................. 38
7.1.2 Monthly Quantity: ................................................................................................................... 38
7.1.3 Make-up Entitlement & Make-up Quantities/ Carry Forward ............................................................ 38
7.1.4 Compensation for short supply /lifting ............................................................................................... 39
7.2 Quality ............................................................................................................................... 39
7.3 Determination of coal quality ......................................................................................................... 39
8. Capacity Addition and review of facilities with DGM................................................................... 46
8.1 Quality addition: .............................................................................................................................. 46
8.2 Quantity addition ............................................................................................................................. 46
Page 3 of 46
1. Background
As per the Colliery Control Rules 2004, Coal Controller Organization (CCO) is the statutory body under
Government of India, who regulates the classification/categorization/grading of coal mined in India. As per
the said provisions, Coal Controller shall lay down the procedure and method of sampling and analysis of
coal for the purpose of declaration and maintenance of grade mined in a colliery. By following the
procedure laid down by CCO, the grades of coal seams at different collieries are declared every year.
They are mainly:
I. Non-coking coal where grading is based on Gross Heat content
II. Coking Coal where grading is based on ash % and
III. Semi coking coal and weakly coking coal where grading is based on ash and moisture %.
Details of the coal quality are shown in following tables:-.
Table 1.Grading of Non-Coking Coal
Grade of Coal
Range of Gross Calorific Value
In Kilo Calories / Kg
Grade of Coal
Range of Gross Calorific Value
In Kilo Calories /Kg
G1 Greater than 7000 G2 Greater than 6700 and Less than 7000
G3 Greater than 6400 and Less than 6700 G4 Greater than 6100 and Less than 6400
G5 Greater than 5800 and Less than 6100 G6 Greater than 5500 and Less than 5800
G7 Greater than 5200 and Less than 5500 G8 Greater than 4900 and Less than 5200
G9 Greater than 4600 and Less than 4900 G10 Greater than 4300 and Less than 4600
G11 Greater than 4000 and Less than 4300 G12 Greater than 3700 and Less than 4000
G13 Greater than 3400 and Less than 3700 G14 Greater than 3100 and Less than 3400
G15 Greater than 2800 and Less than 3100 G16 Greater than 2500 and Less than 2800
G17 Greater than 2200 and Less than 2500
Table 2.Grading of Coking Coal
Grade Ash Content (%)
Steel – I Upto 15
Steel- II Exceeding 15 and upto 18
Washery. I Exceeding 18 and upto 21
Washery. II Exceeding 21 and upto 24
Washery. III Exceeding 24 and upto 28
Washery. IV Exceeding 28 and upto 35
Table 1.3: Grading of Semi Coking and Weakly Coking Coal
P a g e 4 | 46
Table 3.Grading of Semi Coking and Weakly Coking Coal
Grade Ash + Moisture Content (%)
Semi Coking-I Not Exceeding 19 %
Semi Coking –II Exceeding 19 % but not exceeding 24 %
As royalty to the State Government is paid based on grade of Coal, which was removed or consumed
from the mining lease area, it is extremely important for State Government to ensure the correctness of
Grades as declared by Mine Owners.
2. Application of the SOP
This standard operating procedure (SOP) shall be applicable for the Directorate of Geology & Mining
(DGM), Government of Chhattisgarh who is responsible for mineral administration of Coal within the state
of Chhattisgarh. This SOP must be reviewed after every year and during the year, if there is any
amendment in rules/regulations or Act.
3. Applicability
In exercise of the powers conferred by sub-clause (b) of sub-section (1) read with subsection (3) of section
26 of the Mines and Minerals (Development and Regulations) Act,1957 (67 of 1957), the Central
Government as per Gazzette Notification S.O. 645 (E) dated 02.03.2016 has notified that the powers of
the Coal Controller under sub-rule (3), (4), (5) of rule 4, rules 5, 7, 10 and 12 of the Colliery Control Rules,
2004, shall be exercised by the respective State Governments or such officer as authorized by it through
notification in respect of all coal mines except the mines or blocks of Central Government Public Sector
Undertakings. Governor of Chhattisgarh State has delegated all these powers to various officials as per
order issued dated 4th June 2016. With reference to these regulatory changes, State Government of
Chhattisgarh represented by the Directorate of Geology & Mining (DGM) have prepared the below
Standard Operating Procedures (SOPs) for executing the responsibilities laid down the referenced order.
4. Objectives of the SOP
To lay down procedures for implementation of below mentioned rules and regulations for authorized
officials of DGM:
a. Categorization of coal/ declaration of grade of coal by owner, agent or manager (Procedures of
collection, sampling and analysis of coal samples [as per Rule 4(2) of CCR 2004] (Refer Clause
5.1 & 5.3 of this document)
b. Submission of returns and information by owner of a colliery and every person engaged in the
business of production, supply and distribution of , or trade and commerce in coal [as per Rule 5
of CCR 2004] (Refer Clause 5.4, Annexure A, B,E & F of this document)
c. Quality surveillance with respect to maintenance of grade, loading of coal in wagons/ trucks
according to laid down procedures regarding grades and sizes [as per Rule 7 of CCR 2004] (Refer
Clause 5.1.2 & 5.3 of this document)
d. Suspension or closure of coal mine or seam [as per Rule 10 of CCR 2004] (Refer Clause 5.5 and
Annexure E of this document)
e. Inspection of collieries so as to ensure the correctness of the class, grade or size of coal [as per
Rule 12 of CCR 2004] (Refer Clause 5.6 of this document)
f. To act as the appellate authority in case of dispute between consumers and owner arising out of
declaration of grade and size of coal. [as per Rule 4(5) of CCR 2004] (Refer Clause 5.3 and
Annexure C of this document)
Page 5 of 46
g. Identification of the Capacities and review of facilities [To perform above functions] (Refer Clause
8 of this document)
h. Review of existing industry practices followed by Coal India Limited (CIL) and its subsidiaries in
terms of Fuel Supply Agreement (FSA) (Refer Clause 7 of this document).
5. Procedure for categorization of coal in compliance with Rule 4 of CCR
Figure 1.Flow diagram for Annual Grade Declaration for coming financial year
Note:
• Cost of Lab analysis of the samples shall be borne by Colliery owner.
• Colliery owner shall provide all reasonable facilities in sample collection and preparation
• A similar approach will have to be follow in case if colliery owner wants to revise the annual grade.
• In case of annual grade declaration, depending on analysis result of first sample collected by authorized officials of DGM, Regional Head will decide whether further collection and analysis of samples is required or not.
• In case of unusual variation, RH/DD will analyze reasons for such variation. System of rejecting
suspicious test result should be as per Appendix D of IS:436 (Part 1/sec1 1964 of BIS). At least one
Provisional declaration of
grades by Colliery owners
•Sample collection & Sample preparation by colliery owners
•Sample analysis
•Provisional declaration of Grade by colliery owners to concerned regional office(Before 15th of December
Intimation of grades by DGM
authorised officials to colliery
Owners
•Sample Collection by DD/MO/Flying Squad/MI from 2nd week of Jan at three different days of at least 7 day interval(sample will have three portions: one for DGM, one for Colliery owner and one will be taken by DGM as referee sample). It is also proposed that DGM should collect first sample together with colliery owners to minimize time, effort and dispute.
•Lab Analysis(Bilaspur /NABL Labs: to be decided by Director DGM/Additional Director, DGM)
•RH of regional offices to Intimate analysis report to Colliery owner
Grade acceptance/reject
ion by Colliery owners
• If acceptable notify in prescribed format.
• If not acceptable, challenge DGM report within 15 days.
Dispute management
•Verification of seal of referee sample by colliery representatives within 15 days.
•RH/DD will send at least 6 lot of samples to Laboratory for analysis with proper coding. ( It is a good practice to send samples in presence of colliery representatives).
•code number should not be shared with colliery representatives.
•Average grade of all the samples should be annual grade
P a g e 6 | 46
sample in a quarter can be collected under supervision of RH/DD to check seasonal variation as well as
work of subordinate officers
• A sample timeline for annual grade declaration is shown below. It can be revised every year with slight
modification as per the requirement.
Figure 2. Sample timeline for Annual Grade Declaration
Page 7 of 46
5.1 Categorization of coal/ declaration of grade [Rule 4 of CCR2004]
Grade declaration is done in following stages:
I. Provisional declaration of grades by Nominated Owner
II. Quality Surveillance by DGM to approve the grade
III. Confirmation of approved annual grade by Nominated Owner
5.1.1 Steps taken by Colliery owners for Provisional declaration of grades
Various aspects to be followed by Nominated Owner while declaring provisional grades of Coal
I. For new seam, before commencement of dispatch of coal, Grade proposals must reach the office
of the DGM through online portal of DGM(Once implemented)/ by email. All relevant documents
along with Annexure-B for Coal shall be uploaded or attached.
II. For provisional grading/quality, at least two seam samples excluding pickable bands of 10 cm
thickness and above are to be drawn from at least two different sites which shall be as far apart as
practicable but in any case not less than 30 meters. If the method of mining is such that the pieces
of bands after blasting or cutting cannot be separated/picked, then the same should be included in
the sample, keeping in view the cost incurred on beneficiation. In such cases, the Nominated
Owner/Agent must submit a certificate as per Annexure-F. The said samples to be drawn by the
Nominated Owner, Agent or Manager of the mine are to be analyzed as per the relevant BIS
specifications. The analysis may be carried out at laboratories as mentioned in Annexure H and the
prescribed grade certificate on the company’s letterhead, in the extant prescribed format (Annexure
– A), should be forwarded to the DGM
III. In case of declaring the provisional grade/quality of a seam, which had enjoyed a grade/quality in
the past but subsequently withdrawn, the previous grade or its equivalent may be declared as
provisional grade/quality.
IV. While declaring a provisional grade/quality, the Nominated Owner should furnish the following
information to the DGM: -
a. Number of samples tested and the dates of drawl of samples.
b. Place/places from where samples are drawn (enclose a mine plan of scale 1:4000 showing the
Area proposed to be worked during the financial year and the places of sampling)
c. Copies of test results issued by laboratories duly countersigned by the Colliery Manager and
Head of Quality Management of the Company.
d. Seam Section(s) up to the full thickness and the working thickness. Nature and thickness of
bands in the seam must be clearly mentioned therein showing whether the band is included or
excluded.
e. Particulars of Govt./NABL Accredited laboratory/laboratories where samples are analyzed.
V. If the provisional grade is not approved by the DGM till 31st March or at a later date as communicated
by DGM to colliery owner, the provisional grade shall be considered as annual grade
VI. In case of a virgin seam in a working coalfield, determination of class i.e. whether the coal is coking
or non-coking may be assessed provisionally on the basis of analysis results of seam samples
(proximate analysis on equilibrated basis), GCV (by approved bomb calorimeter on dmf basis as
per IS : 1350 (Part - II) 1970 dated April 1971 or any subsequent revision thereof), Mean Random
Reflectance % (Ro), Moisture % (60% R.H.) parts/100 parts of unit coal, V.M.% on dmf basis, LTGK,
CSN, Ash% , Carbon %(dmf) and Hydrogen % (dmf) from ultimate analysis of coal etc. in any
laboratories as mentioned in Annexure H. The Nominated owner shall apply to the DGM for
provisional classification of the seam giving particulars of the class and grade/quality of the seam
in the extant prescribed format (Annexure-B).
P a g e 8 | 46
VII. In case of a virgin seam in a new area having no mine in the vicinity, the expected class of coal as
per analytical data of bore hole or other such samples provisionally mentioned or mentioned in the
Project Report (PR) may be taken as the expected/indicative class for the purpose of declaring the
grade/quality. In this case also the owner shall apply to the DGM through online portal of
DGM(Once implemented)/ email with detailed justification for provisional classification of the seam
in the extant prescribed format (Annexure-B).
VIII. Similarly, provisional composite grade/quality of coal dispatched through sidings shall be declared
in the event coal of multiple grades is dispatched through those siding(s) as one single composite
grade mentioning the proportion of mixing different grade of coal. In the event coal in multiple grades
is dispatched through the siding(s) in the respective multiple grades, no specific declaration is
needed and the corresponding grades of each feeding colliery are needed to be stated against that
particular siding.
IX. The application for confirmation of the final class whether the coal is coking or non-coking in case
of a virgin seam should be submitted to the DGM, Chhattisgarh as early as possible but in any case
not later than 60 (sixty) days from the date of declaration of provisional grade/quality.
5.1.2 Quality Surveillance to be conducted by DGM
Quality surveillance will be required to be done by DGM throughout the year. It consists of inspection for
ascertaining quality in private and state government owned coal mines, regular inspection to ensure
compliance with specific orders relating to coal and resolving statutory complaints. Quality Surveillance
will to cover following aspects:
a. Annual grade approval
b. Revision of annual grade
c. Revision of classification of coal seam
d. Reopening of workings
e. Dispute management
Authorized officials will be required to carry out inspection of Collieries. They will also be responsible for
collection of Coal Samples. Once coal samples have been collected, it can be analysed in either DGM
own lab or any other lab as suggested by Coal Controller. In case, DGM lab does not have facility for
ultimate analysis of Coal Samples, it can be carried out in other labs as mentioned by Coal Controller or
DGM needs to provide facility for Ultimate analysis of Coal in their lab.
5.1.3 Annual Grade Approval :
I. All the annual grade proposals must reach the office of the DGM through online portal of DGM (Once
portal has been designed) positively before 15th of December of every year failing which the same
shall not be considered for annual grading by DGM. In CaseGrade proposal can be sent by mail till
portal has been designed. All relevant documents stated below along with Annexure-B for Coal shall
be sent to DGM or uploaded on portal:
a. Number of samples tested and the dates of drawl of samples.
b. Place/places from where samples are drawn (enclose a mine plan of scale 1:4000 showing the
Area proposed to be worked during the financial year and the places of sampling)
c. Seam Section(s) up to the full thickness and the working thickness. Nature and thickness of
bands in the seam must be clearly mentioned therein showing whether the band is included or
excluded.
d. Particulars of Govt./NABL Accredited laboratory/laboratories where samples are analyzed.
e. Copies of test results issued by laboratory, duly countersigned by the Colliery Manager and
Head of Quality Management of the Company.
Page 9 of 46
II. Following table should be used regarding approval of grads declared by nominated authority:
Sl
No
Description Condition Decision taken by DGM
1 same seam is going to
be mined in coming
financial year
Grade proposal sent by nominated
authority is same as grade approved
for the current financial year
Grade may be approved
without having any sample
collection and analysis
2 same seam is going to
be mined in coming
financial year
Grade proposal sent by nominated
authority is not same as grade
approved for the current financial
year
Sample collection and
analysis needs to be done
3 New seam is going to
be mined in coming
financial year
Sample collection and
analysis needs to be done
III. Random sampling and/or analysis for finalization of the proposed grades of all the seams of the mines
and all attached siding(s) of mine(s) shall be done by authorized officers of DGM. For this purpose,
seam /dispatch samples shall be collected and analyzed. The job shall commence from the 2nd week
of January every year .
IV. The seam shall ordinarily be graded only in respect of the working thickness in case of underground
development working. For annual grade declaration for the seams of underground mines where more
than one coal seam are being worked but coal come out in a mixed way through the main belt, there
shall be a provision of collecting samples from the respective belts of different seams for their individual
grade declaration.
V. In case of depillaring and opencast mining, the total working thickness of the seam or seams involved
should be considered for grading purpose. If technology is such that full thickness cannot be mined out
at a time, then Regional office of DGM will take decision regarding collection of samples and it will be
site specific.
VI. The grade/quality declaration shall generally be in respect of a seam or a section of a seam and not in
respect of any pit, incline or quarry.
VII. The annual grade/quality of coal shall be finalized by DGM on the basis of samples drawn randomly
from wagons/trucks/conveyor belts/rope ways on at least 3 different dates with a minimum interval of
7 days and by taking the average of the samples. The expenditure of such sampling / sampling &
analysis shall be borne by the Coal Company. All the reasonable facilities shall be provided by the Coal
Company as requisitioned by the Head of the Regional DGM offices.
VIII. On the basis of average of the analysis results of all the three samples, the approval for the Annual
Grade Declaration shall be communicated by the DGM. Subsequently, the grades/quality so approved
by the DGM shall be notified by the Nominated Owner in the prescribed Grade Certificate in the
enclosed prescribed format (Annexure-A) and copy of such Grade Certificate(s) issued under the
signature of the Owner shall be forwarded to DGM. Number of sample collection and analysis can be
revised by regional head based on analysis report of first sample. For example if GCV of first sample
analysis is closer to upper range of GCV of that Grade, then further sample collection and analysis is
recommended.
5.2 Revision and dispute management
5.2.1 Revision of annual grades/quality
P a g e 10 | 46
I. If the Nominated Owner intends to revise the existing (Annual) grade/quality of a seam or section of a
seam, he shall, not less than 60 days before such revision, give notice of his intention to the DGM in
writing indicating the results of both seam and loading samples drawn by the Owner, Agent or Manager
of the mine in the prescribed format (Annexure- B) on at least 6(six) different dates spaced at an interval
of at least 7 (seven) days in the preceding 2(two) months to justify the proposed revision. The samples
drawn from at least 3 different locations of the concerned seam/ siding shall be analyzed in laboratories
as mentioned in annexure H and the sampling sites shall be clearly shown in the attached working
plan. If the colliery has entered into Third Party/Joint sampling agreement with a consumer(s)the
analysis results of such third party/joint samples may be the basis for revision of grade/quality if agreed
by the major consumer. The results of such third party/joint samples countersigned by the major
consumer shall be submitted along with the notice of intention for revision of grade/quality.
II. For annual grade declaration for the seams of underground mines where more than one coal seam are
being worked but coal come out in a mixed way through the main belt, there shall be a provision of
collecting samples from the respective belts of different seams for their individual grade declaration.
On receipt of the notice of intention from the Nominated Owner as stated above, the DGM officials may
collect the dispatch samples and get them analyzed at any laboratories as mentioned in Annexure H
and the cost of it shall be borne by the Coal Company concerned and accordingly the grade(s) may be
revised based on the recommendation of Regional head of DGM and due approval of the authorized
officials of DGM.
5.2.2 Revision of classification of coal seams
I. Responsibility of Nominated Owner: In case of intention of change of classification of coal from
coking to non-coking & vice versa, the Nominated owner shall apply to the DGM positively by 31st
December of each year. At the time of submission of Annual Grade proposals of seams/sections of
the mine(s) owner shall provide detailed justification for change along with current relevant detailed
analysis results in the extant prescribed Format (Annexure- B) with comments/observations of any
laboratories as mentioned in Annexure H. For this owner must analyse six (6) seam samples during
the last six months of the previous financial year as per laid down procedure from at least 3 (three)
different locations of the concerned seam and it must be shown in the attached working plan (1:4000)
.
II. Responsibility of DGM: The proposed change of classification of coal would be verified by officials of
DGM through systematic sampling of seam as well as loading samples drawn on at least 3 (three)
different dates spaced at an interval of at least 7 (seven) days in a span of 1 (one) month to justify the
proposed revision, as per laid down procedure and the detailed analysis like Moisture % (60% R.H.)
parts/100 parts unit coal,V.M. (per cent on dmf basis), GCV (in Bomb calorimeter on dmf basis), Mean
Random Reflectance per cent (Ro), LTGK type, C.S.N, Ash %,Carbon % (dmf) and Hydrogen% (dmf)
etc. should be done at any laboratories (as mentioned in Annexure H) with their
comments/recommendation for such change of geological coking/non-coking characteristics of coal.
On the basis of the analysis results, DGM shall take the decision and the decision of acceptance shall
be intimated to the Nominated Owner of the concerned coal company, if found in order as per Table 2
of Indian Standard classification and codification of Indian coals and Lignites ( IS 770 : 1977, second
revision and further revision thereof).
III. Interim re-classification proposal by the Nominated Owner for revision from coking/non-coking
characteristics or vice-versa within a financial year may not be accepted at the office of the DGM.
Page 11 of 46
5.2.3 Dispute Management between supplier of coal and purchaser (Under rule 4(5) of CCR, 2004
I. Any consumer who wishes to prefer a complaint to the DGM regarding the grade of coal received by
him may do so in the format provided in Annexure C. A separate complaint should be made in respect
of each grade of coal of each colliery which should be accompanied by a fee of Rs.2500/- in the form
of an A/C Payee Bank Draft on any Nationalized Bank in Raipur drawn in favour of DGM,
Chhattisgarh, for each grade of each colliery against which complaint is being raised.
II. While referring to any dispute arising out of the correctness of the declaration of grade of coal to the
DGM by a coal consumer for a decision, under sub-rule 5 of rule 4 of the Colliery Control Rules, the
same should be preferred in the prescribed format (Annexure – C), and full analytical data of coal
and such other information which is considered relevant by the DGM should be furnished.
III. On receipt of the complaint from the consumer, the may take surprise samples in the presence
of authorized representatives of Coal consumers and the coal company from the loading point(s), get
them analyzed in Government or NABL accredited laboratories. Cost of such analysis of the samples
shall be borne by the complainant. Based on the results, DGM shall take a decision.
IV. The decision of the DGM in the matter of disputes about grades/quality under sub-rule 5 of rule 4 of
the Colliery Control Rules, 2004 is final and binding on the Coal Company and Consumer.
V. Disputes arising only in respect of the correctness of declaration of grade/quality of coal of seam or
section of a seam shall be admitted by the DGM and no dispute in respect of commercial aspects in
respect of a particular consignment shall be entertained by DGM.
Flow diagram for dispute management has been shown in figure 3.
Figure 3. Flow Diagram for dispute management
Note:
P a g e 12 | 46
• Disputes arising only in respect of the correctness of declaration of grade/quality of coal of seam or section
of a seam shall be admitted by the DGM
• Cost of Lab analysis of the samples shall be borne by the complainant
• Decision taken by DGM will be binding on the Coal Company and Consumer
5.2.4 Dispute management between Mine Owner and State Government
I. The referee sample shall be analyzed when the Colliery challenges the result supported by his
own analysis result of the sample kept with him within a period of 15 (fifteen) days from the date
of intimation of Regional Head of DGM’s result. The analysis result of the referee sample shall be
the final analysis result of the consignment.
II. The aggrieved colliery will be allowed to examine within another 15(fifteen) days whether the seal
on the referee sample is intact. The referee sample part should be sent to a laboratory in a lot of
at least 6 (six) samples with code number (which would not of course be made known to colliery
representatives) under sealed condition. Effort shall be made to dispatch the referee samples in
his presence. Otherwise, the referee sample will be destroyed after 30 (thirty) days from the date
of intimating the results
III. In case of unusual variation of analysis result of the referee part from the earlier result of the same
sample, the reason for such variation may be analyzed.
IV. System of rejecting suspicious test result shall be as per Appendix D of IS:436( Part I /Sec I) 1964
of BIS(Annexure I)
V. For such cases, at least one sample in a quarter shall be collected under supervision of Regional
Head of DGM himself , so that the seasonal variation as also the work of the subordinate officers
can be checked.
VI. In order to ensure proper analysis, Regional Head of DGM should have the analysis conducted
periodically in more than one Govt. Accredited laboratory simultaneous and compare the results.
VII. All reported grades (Seam wise, composite grading etc.) must be in line with approved grades.
VIII. Example: let us assume a mine has 4 coal seams planned to be mine in a financial year as per
approved mine plan then. If approved grade of four seams are G6,G7,G8,and G9 then in any
month reported grade should match with approved grade. DGM will not accept if reported grade
is other than any of four grades. In a particular month, reported grade may be any or all of four
grades but no other than it.
IX. In any month, If DGM is not satisfied with reported grades, DGM can send a letter to mine owner
for justification or can perform a proper sampling and analysis. Based on the result of analysis,
DGM will re- declare the grade
X. If result of analysis is other than as reported by Mine Owner, Mine owner will have to bear all the
cost incurred.
XI. Certified Survey Report (approved by Mine Manager) at start and end of financial year should be
main basis to validate tonnage of Coal produced in financial year.
XII. It might be possible that a mine has planned to mine n number of seam in a financial year. In a
particular month, grade reported by mine owner must match with any of n number of seams in
either a direct way or a weighted way.
XIII. If reported grade does not match with approved grades, DGM can ask for proper justification.
XIV. If DGM is not happy with justification, they can again perform sampling and analysis to check the
grade.
XV. Mine owner will have to bear all the cost in case if result of sampling and analysis done by DGM
is not matching as reported by him.
Page 13 of 46
5.2.5 Time Frame for submission of application
I. All the provisional grade proposals for declaration of annual grade must reach DGM office positively
before 31st of December of every year failing which the same shall not be considered for annual
grading by DGM
II. The application for confirmation of the final class whether the coal is coking or non-coking in case of
a virgin seam should be submitted to the DGM as early as possible but in any case not later than 60
(sixty) days from the date of declaration of provisional grade/quality.
III. In case of intention of change of classification of coal from coking to non-coking & vice versa, the
Nominated owner shall apply to the DGM positively by 15th December of every year.
IV. If the Holder/Owner intends to revise the existing (Annual) grade/quality of a seam or section of a
seam, he shall, not less than 60 (sixty) days before such revision, give notice of his intention to the
DGM in writing indicating the results of both seam and loading samples drawn by the Owner, Agent
or Manager of the mine in the prescribed format (Annexure- B) on at least 6(six) different dates
spaced at an interval of at least 7 (seven) days in the preceding 2(two) months to justify the proposed
revision.
V. Proposal for revision of grade (if any) intended by the Nominated Owner shall not be entertained by
DGM if received after expiry of six months from the declaration of annual grade.
VI. Interim re-classification proposal by the Nominated Owner for revision from coking/non-coking
characteristics or vice-versa within a financial year will not be accepted at the office of the DGM.
VII. In case, where a seam is re-opened within 6(six) months of temporary discontinuance, the previous
grade prevailing at the time of discontinuance may be restored but when the period of discontinuance
exceeds 6(six) months, the nominated owner shall apply afresh for grade verification by DGM.
VIII. Various applications and their timelines are provided in Table 4.
Table 4. timeline for submission of application by colliery owners
Sl. No Description Timelines Remark
1 Provisional Grade proposal for
declaration of annual grade
Before 31st December of Every
year
2 Annual Grade declaration by DGM By end of February
3 Proposal of revision of Annual
Grade
Not less than 60 days from such
revision
Proposal will not be
accepted by DGM if
received after expiry
of six months from
the declaration of
annual grade
4 Application for confirmation of final
Class (coking or non-coking) in
case of virgin seam
Not later than 60 (sixty) days from
the date of declaration of
provisional grade/quality
5 Change of Class (from Coking to
Non-coking & Vice versa)
31st December
P a g e 14 | 46
6 Interim re-classification(coking to
non coking and vice versa)
Not Allowed
7 A seam is re-opened within/after
6(six) months of temporary
discontinuance
Immediately if discontinuity
exceeds 6 months
Previous grade
prevailing at the
time of
discontinuance may
be used if
discontinuity is less
than 6 months.
5.2.6 Organization structure and Responsibility Sharing
Figure 4. Organization Structure
Table 5 covers responsibility sharing matrix as per order issued by Governor of Chhattisgarh State
Table 5. Sharing of responsibilities as per order issued by Governor of Chhattisgarh
State
Sl No Authorised officer Rules of Colliery
Control Rules
2004
Jurisdiction
1 Director, Geology and Mining
Chhattisgarh
4(3),4(4),4(5), 5, 10
& 12
The entire territory of the
State of Chhattisgarh
Director, DGM
Additional Director
Joint Director(MA)
Flying Squad
Deputy Director(Mining)
MO AMO
MI
joint Director(Geology)
Regional Head(geology)
Page 15 of 46
2 Additional Director, Geology and Mining
Chhattisgarh
4(3),4(4),4(5),7 &
12
The entire territory of the
State of Chhattisgarh
3 Joint Director, Geology and Mining
Chhattisgarh
4(3), 7 & 12 The entire territory of the
State of Chhattisgarh
4 Deputy director(Mineral
Administration)/Mining Officer, Flying
Squad
4(3), 7 & 12 The entire territory of the
State of Chhattisgarh
5 Deputy Director (Mineral Administration)/
Mining Officer, posted in district
4(3), 7, 10 & 12 Area within the limit of
their respective District
6 Assistant Mining Officer 7 & 12 The entire territory of the
State of Chhattisgarh
7 Mining Inspector 7 The entire territory of the
State of Chhattisgarh
As mining inspectors are empowered for quality surveillance (under Rule 7 of CCR,2004) but not
for collection of Coal samples (under Rule 4(3) of CCR,2004) it is suggested that authorised
officials under Rule 7 of CCR,2004 can delegate their power to mining inspectors whenever
required. Further, if DGM considers the need to provide sampling right to mining officers, same
can be done after amending order issued dated 4th June 2016 by Governor of Chhattisgarh State.
Based on the above matrix, Way forward for all activities to be fulfilled by DGM has been tabulated
in Table 5.4
Table 5.4: Way forward for all activities to be fulfilled by DGM
Rules under
CCR,2004
Description
Current status
Proposal/ way forward Authorized Officers
4(3) Inspection of colliery
for correctness
of grade
Not Happeni
ng
1. All inspections regarding annual grade approval should be completed before mid of Feb.
2. All other inspections regarding Coal grade approval should be done as required and as per Coal SOP
3. For annual grade approval, It is advisable that DGM should do their first sampling together with Colliery owner during their provisional sampling of Coal. It will save the time and will have less chances of dispute between colliery owners and DGM.
4. 3 times sample collection and analysis is advised. However depending upon result of first sample analysis, RH can decide whether further sample collection and analysis is required or not.
Director(G&M),AD(G&M),JD(G&M),DD(Min
eral Administration)
, MO, Flying Squad
4(4) Final approval of grade based on inspection/
Not Happening
1. Before end of March for annual grading 2. All other declaration of grades should
be done as require and as per Coal SOP
3. Samples can be analysed in State DGM Lab or any NABL Accredited labs.
Director(G&M),AD(G&M)
P a g e 16 | 46
sample analysis
4. All the cost incurred in analysis of samples has to be borne by Colliery owner.
4(5) To act as appellate authority between consumer and owner of a colliery regarding declaration of grades
Not Happeni
ng
1. Required only when complain comes from consumer side.
2. Disputes arising only in respect of the correctness of declaration of grade/quality of coal of seam or section of a seam shall be admitted by the DGM and no dispute in respect of commercial aspects in respect of a particular consignment shall be entertained by DGM
3. DGM will do their own sampling an analysis and decision of the DGM will be binding on both Coal Company and consumer.
4. All the cost incurred will be borne by complainer.
Director(G&M), AD(G&M)
5 Submission of returns
District collector
s are already getting most of
the return copies.
1. Returns also need to be taken from every person engaged in trading of coal.
2. Mine owners and every person engaged in trading of Coal need to submit Other information in district collector offices as required by DGM
3. It will assist in checking production, consumption and sell of Coal.
Director(G&M),AD(G&M),
7 Quality Surveillance
Partly happening
1. Need based quality surveillance. 2. At least quarterly 3. A dedicated team of MO and flying
squads will be involved in frequent and random inspection of collieries.
AD(G&M), JD(G&M),DD(Mineral Admin), MO , AMO, MI & Flying Squad
10 Notice of suspension or closure
Happening
1. Colliery owners has to furnish the notice within 30 days of such suspension or closure
2. Regulation 5 of CMR 2017 also has provision for such notice and notice has to be given to Chief Inspector of Mines, Regional Inspector of Mines and District Magistrate
3. Notice of suspension/closure can be matched with regional DGMS offices.
Director(G&M), DD(Mineral Admin), MO
12 Power of inspect collieries
Partly happening
1. Need based. 2. At least quarterly 3. A dedicated team of MO, AMO, MI and
flying squads will be involved in frequent and random inspection of collieries.
Director, AD(G&M),JD(G&M),DD(Mineral Admin), MO, AMO, MI, Flying Squad
Apart from mentioned delegations, responsibilities can be delegated to any other officers authorized by
DGM and RH of concerned Regional Office.
Each Regional office need to have sufficient number of officials (Mining Inspectors/Assistant Geologists)
based on number of coal mines under their purview. It is also proposed that there qualification should be
at least M.Sc. or M. Tech in Geology. These officials will be responsible for fieldwork (e.g. collection of
samples, inspection of collieries etc.). All these officials must be well aware of all procedures, which is
required to perform their job. If required, training and capacity building to perform the required duties may
be conducted by DGM.
Page 17 of 46
5.3 Quality Surveillance in compliance with Rule 7 of CCO
Framework work for Quality Analysis
5.3.1 Sampling of Coal
Procedures of collection of coal from Coal Seam: BIS specification NO.IS: 436 (Part I/ sec I) – 1964, Methods For sampling of COAL AND COKE –Part. I SAMPLING OF COAL Section 1 Manual Sampling (Revised)
I. The section of seam to be sampled shall be exposed from the roof to the floor. The exposed
surface shall be as smooth as possible so that a rectangular channel may be cut.it may often be
necessary to penetrate into the seam for a few decimeters to avoid taking weathered coal
especially if the face has been standing exposed for some time.
II. The seam sample shall be taken in a channel representing the entire cross section of the seam
having the dimension of 30 x 10cm , that is 30 cm width and 10 cm in depth.
III. For this purpose, two parallel lines, 30 cm apart and at right angles to the bedding planes of the
seam shall be marked by a chalked string on the smooth, freshly exposed surface of the seam.
IV. Obvious dirt bands exceeding 10 cm in thickness shall be excluded.
V. The channel between the marked chalk lines in the seam shall be cut to a depth of 10 cm and the
coal sample collected on a clean strong cloth or tarpaulin placed immediately at the bottom so
that the chances of pieces flying off during excavation of coal are minimized.
VI. The total height of the channel shall be measured and noted.
VII. The excluded dirt bands shall, if required, be separately collected and analyzed.
A. Procedures of collection of coal from loaded trucks
I. Trucks shall be chosen at random which shall be the first truck for sampling & after that 2nd and 3rd
truck may also be randomly selected.
II. One point on the surface of the loaded trucks will be decided for collection of sample before getting
on to the top of the trucks. From the prefixed point the entire quantity of coal will be collected from a
pit of about 30 cm diameter and dug up to a depth as far as practicable.
III. The top of the selected spot for collection of sample shall be leveled before digging a pit of about 30
cm diameter to a depth as far as practicable taking precaution to prevent coal getting mixed with the
sample due to side spillage. However, the minimum quantity thus collected from each pit shall not be
less than 30 Kg.
Sampling of Coal
•Sample Collection
•Sample collection from Seam
•Sample collection from Loaded trucks
•Sample collection from static loaded wagons
•Sample collection from conveyor belts
•Sample Preparation
•Conig and Quartening
•General Precautions
Lab Aanlysis Report generation
P a g e 18 | 46
IV. In case of any big piece of coal/stone encountered during the process of digging in the above manner,
all the material at the top of the big piece shall be taken in sample.
V. After collection from one truck, the gunny bag containing the sample shall be carried to the site of next
selected truck and the same process is continued up to the last wagon selected for collection of
sample. Alternatively, the gunny bags containing sample may be kept at a central place under reliable
guard or placed in the locked sampling room wherever available. The gunny bag will be loosely tied.
B. Procedures of collection of coal from Static loaded Wagons
I. Whole Rake (fully or partially loaded) will be considered as one lot for the purpose of sampling. When
a rake is loaded with more than one grade/source of coal, wagons loaded with one grade of a particular
source shall constitute one lot.
II. 10% (Ten per cent) of wagons of each lot will be selected from the population of the loaded wagons
for actual collection of samples as per random number table (Ref: IS 436 Part I , Sec I of 1964 of
Bureau of Indian Standards).
III. One point on the surface of the loaded wagons will be decided for collection of sample before getting
on to the top of the wagon. From the prefixed point the entire quantity of coal will be collected from a
pit of about 30 cm diameter and dug up to a depth as far as practicable.
IV. The top of the selected spot for collection of sample shall be leveled before digging a pit of about 30
cm diameter to a depth as far as practicable taking precaution to prevent coal getting mixed with the
sample due to side spillage. However, the minimum quantity thus collected from each pit shall not be
less than 30 Kg.
V. In case of any big piece of coal/stone encountered during the process of digging in the above manner,
all the material at the top of the big piece shall be taken in sample.
VI. After collection from one wagon, the gunny bag containing the sample shall be carried to the site of
next selected wagon and the same process is continued up to the last wagon selected for collection of
sample. Alternatively, the gunny bags containing sample may be kept at a central place under reliable
guard or placed in the locked sampling room wherever available. The gunny bag will be loosely tied.
General: To ensure the randomness of selection of Wagons from a sub-lot, the use of random number
tables as described below is recommended. The first set of random numbers shall be used if the
number of wagons in the sub-lot is less than or equal to 100, whereas the second set shall be used if
the number of wagons in the sub-lot is more than 100 but less than 1000. Having selected the set, any
one numeral shall be chosen from it at random, starting from the selected numeral and continuing on
with the numerals in any direction, right or left, up or down, the succeeding numerals shall be copied
out one by one till the number of numerals copied out is equal to the number of wagons to be chosen.
The numerals which are greater than the size of the sub-lot or which have already occurred shall be
omitted. The numerals noted down in this manner shall then be arranged in the ascending order of
magnitude.
a. Starting from any wagon in the sub-lot and counting them in one order, the wagons corresponding to
the numerals already noted down shall be selected for drawing gross samples.
b. Taking the first set of random numbers as provided below, suppose, further that numeral 07 occurring
in the third row under second column is chosen at random. Proceeding further in any direction, say
right, and omitting the numerals which are greater than 15, the numerals encountered are 07,04, 14
and 68. Arranging them in one ‘order, the sequence 04,07,08 and 14 is obtained. It then follows that
the 4th, 7th, 8th and 14thwagon counted from the beginning of the’ sub-lot shall be selected for drawing
the gross sample:
Random number tables
Table 5.5: First Set of Random Numbers
Page 19 of 46
81 74 67 95 70 56 51 54 50 53
61 37 42 62 93 96 34 18 22 89
52 07 16 29 39 04 71 14 76 78
43 08 77 25 72 49 86 03 83 45
65 32 27 40 63 57 97 84 82 87
21 58 11 23 80 10 30 01 100 44
31 90 55 88 13 36 24 91 19 64
73 98 20 05 68 46 69 85 94 59
33 15 35 26 79 92 38 12 41 17
75 66 99 09 06 47 48 60 28 02
Example: Suppose there are 60 wagons in a lot of approximately 1200 tonnes. According to above table , this would require the division of the lot in to 4 sub-lots, each consisting of 15 wagons of approximately 300 tons. Considering any particular sub-lot, if 25 percent of the wagons have to be selected at random for drawing the gross sample, it shall imply that 4 wagons have to be selected out of 15 in the sub-lot.
Table 5.6: Second Set of Random Numbers
288 302 957 018 109 053 044 058 849 285
898 732 965 943 462 554 146 318 313 540
090 553 340 096 870 654 605 967 968 085
370 252 657 094 698 056 813 728 351 266
619 151 079 473 763 886 097 893 506 662
573 866 835 785 689 529 992 283 964 416
304 855 222 564 247 726 626 370 569 002
759 996 232 804 271 605 536 173 607 504
020 357 975 079 547 746 272 659 500 487
039 821 904 130 633 750 579 419 722 753
395 463 995 067 695 681 279 885 746 493
121 732 123 413 978 882 953 243 007 380
876 871 606 733 298 482 384 482 801 332
197 628 957 646 776 436 936 237 913 581
376 581 715 933 367 497 659 196 884 954
227 967 689 687 405 412 088 466 685 099
305 216 474 185 280 576 273 320 270 564
226 712 640 231 789 872 395 896 237 514
238 786 906 967 245 315 316 029 024 692
036 461 087 973 762 208 505 849 449 440
P a g e 20 | 46
C. Procedures of collection of coal from Conveyor Belts
I. For the purpose of sampling, a lot, while it is being discharged over a conveyor, shall be divided into a
number of sub-lots of approximately equal weight as specified below:
Table 5.7: Number of sub lots selection for sampling of coal from conveyor belt
Number of sub lots/ Gross Samples
Weight of the Lot (Metric Tonnes) Number of sub lots/ gross samples
Up to 500 2
501-1000 3
1001-2000 4
2001-3000 5
Over 3000 6
II. A representative gross sample shall be drawn from each of the sub lots and shall be kept separately.
Thus there will be as many gross samples as the number of sub lots into which the lot has been
divided
III. The number of increments to be taken from a sub lots for drawing the gross sample shall be governed
by the weight of the gross sample and the weight of the increment as specified in Table 5.8 for various
size groups of the coal. This number shall be evenly distributed over the sub lot. The increment shall
be drawn with the help of a suitable shovel at regular intervals:
Table 5.8: number of increments from a sub lot of coal sample taken from conveyor belt
Weight of gross sample and number of increments for conveyors
Sl No Sample Run off Mine Coal Coal Large Coal Small
1 Minimum Weight of Gross sample 350 Kg 175 Kg 75 Kg
2 Weight of increment(approx.) 5 Kg 5 Kg 5 Kg
3 Minimum Number of increments 70 35 15
IV. The Increments shall preferably be taken from the full cross section and thickness of the stream in
one operation. When coal is in the motion, the most reliable means of obtaining such increments is
to sample at a point where coal discharges from the belts. The best possible increment is one which
cuts across entirely a falling stream of the material by means of a suitable receptacle passed from
one side of the stream to the other without allowing the receptacle to overflow. If the whole of the
stream can not be covered by one increment without overfilling the receptacle, the stream should be
sampled systematically by taking materials from all portions.
V. If it is not possible to sample satisfactorily at a point of discharge, increments may be drawn from the
moving belts itself. In this case, the increment shall be collected from the centre and the left and right
sided of the belt along the same width. To ensure that very small material is also correctly obtained
in the sample, the scoop should sweep the bottom of the conveyor.
Page 21 of 46
VI. If it is practicable to stop the belt periodically, increments may be collected from the whole cross
section of the stream by sweeping the whole of the coal lying between the sides of a suitable frame
placed across the belt. The frame should be inserted in the coal until it is in the contact with the belt
across its full width.
VII. Before collecting the increments, the speed of the conveyor and the quantity of material passing a
certain point in a given time shall be ascertained so that an appropriate spacing of the increments
may be arranged over the whole of the lot.
VIII. In case automatic samplers are available, they may be utilized for drawing increments from conveyor
belt. The setting of such machines shall be carefully adjusted to ensure that the whole thickness of
the stream is taken.
IX. The material collected from all the increments in a sub lot shall be mixed together and shall constitute
a gross sample.
5.3.2 SAMPLE PREPARATION
I. The total sample collected without exclusion of anything other than foreign materials viz. metallic
pieces, wood, bricks, concrete chips etc., shall constitute the gross sample for the lot.
II. The gross sample shall be crushed to 50 mm preferably by mechanical means, mixed thoroughly,
coned and quartered. Two opposite quarters shall be retained and rest rejected. The retained
material shall be further mixed together and same procedure of coning and quartering and rejection
shall be followed till one quarter of the gross sample is retained. The material so obtained shall be
crushed to 12.5 mm preferably by mechanical means and finally crushed to 3 mm size, preferably
by mechanical means following coning and quartering till approx. 2(two) kg of sample is obtained.
2(two) kg sample is to be reduced to 72 mesh in a pulveriser and shall be kept for analysis.
III. This pulverized sample of approximately 1.5 kg shall be divided into 3 equal parts in segments of
120 degree each and by taking each segment, three equal parts of 500 gm(approx.) of the sample
be collected in suitable polythene bags. One part shall be handed over to the colliery. The second
part shall be sealed with a slip inside the bag as well as tagged outside with information viz. (i) date
of sampling,(ii)name of colliery,(iii)place of sampling,(iv)size of coal and shall be kept as a referee
sample under the custody of DGM’s Organisation. The third part shall be sealed and tagged outside
of the bag with the above information. This part of the sample shall be sent for analysis by DGM to
laboratories as mentioned in Annexure H.
CONING AND QUARTERING
For reduction of sample – the following procedure shall be followed:
I. Heap the material into the shape of a cone by pouring one scoopful of the material one after another
on the apex of the cone by allowing the material to fall down only under the influence of gravity.
II. Flatten the cone evenly so that it forms a low circular pile.
III. Cut the pile into 4 quarters along two diameters, which intersect at right angles. Retain one pair of
opposite quarters and reject the other pair. Repeat till the size of the retained sample is reduced to
the required weight.
GENERAL PRECAUTIONS
I. The place selected for preparation of sample shall be enclosed, properly roofed, well lighted and free
from draught. Where this is not possible, precaution shall be taken against loss of (a)fine wind-borne
sample (b)contamination with moisture (c) contamination with foreign matter .
II. No part of the sample shall be removed during the process of preparation & reduction.
III. Hard clean surface, free from cracks shall be selected for mixing, coning and quartering of the sample
P a g e 22 | 46
IV. The sampling bags for samples collected by Regional Head DGM or his representative should be
identical and shall be similarly sealed and carefully deposited.
V. Before accepting the coal samples from their authorized representative, Regional Head of DGM or his
authorized representative should examine the sample bags and sampling report
VI. Sampling report as prescribed in the Annexure - D shall be prepared in triplicate with the signature of
the representatives of colliery as well as that of DGM authorized officials.
Note: The Regional Head of DGM should send his part of sample to laboratory after codification by
removing the slip inside/outside in a group of at least 6 samples. The code number will be given by
Regional Head of DGM and confidentially recorded in a bound paged register. All the samples sent in
one lot will be in exactly similar bags and after sealing again. The code number would be given both on
the tag and inside the bag.
5.3.3 Procedures for Lab Analysis of Coal Samples
1. For the purpose of analysis of sample(s), the following BIS standards shall be followed:
a METHODS OF TEST FOR COAL AND COKE:PART I PROXIMATE ANALYSIS IS: 1350 (PART-
I) (2nd Revision) – 1984.
b METHOD OF TEST OF COAL & COKE : ULTIMATE ANALYSIS IS: 1350 (PART- IV) 1974
a IS:1350 (PART II) – 1970 (2ND REVISION WITH AMMENDMENT) : DETERMINATION OF CALORIFIC VALUE.
b IS:1350 (PART-III)–1969 : DETERMINATION OF SULPHUR.
c IS:1350 (PART IV/sec.I) –1974 :ULTIMATE ANALYSIS: DETERMINATION OF CARBON & HYDROGEN.
d IS: 1350 (PART IV/sec.2) – 1975:ULTIMATE ANALYSIS: DETERMINATION OF NITROGEN.
e IS :1353-1993: METHODS OF TEST FOR CARBONISATION – CAKING INDEX, SWELLING NO., AND GRAY KING ASSAY(L.T.)
f METHODS OF PETROGRAPHIC ANALYSIS OF COAL:IS 9127 (Part – I, II &III) 1992
c INDIAN STANDARD CLASSIFICATION AND CODIFICATION OF INDIAN COAL AND LIGNITES (IS 770: 1977, SECOND REVISION AND FURTHER REVISION THEREOF).
When the analytical results are received from the laboratory, same should be decoded and
recorded in the register. The results shall be communicated to Coal Company along with all
relevant information, viz. colliery, seam, size fraction, declared grade/quality, place and date of
sampling etc.
Lab should use criteria of rejecting test results as per annexure I
5.3.4 Power of authorized officials for Quality Surveillance under Rule 7 of CCO
Authorized officials shall be competent to:
I. cause the owner, agent or manager of a colliery or any person engaged in or in charge of the loading
of coal in wagons, trolleys or trucks in a colliery, to adjust the loading according to the procedure laid
down by the Coal Controller regarding grades and size of coal and to remove impurities like shales
and stones from the wagons, trolleys or trucks loaded with coal;
II. detain the wagons, trolleys or trucks at the colliery or weighbridge for adjustment of loading after
inspection
III. return the wagons, trolley or trucks to the colliery from weighbridge for unloading and reloading with
the specified quantity and quality of coal.
5.4 Monitoring and review of returns filed & information submitted in compliance with Rule 5
of CCO
Page 23 of 46
As per the Rule 5 of the Colliery Control Rules, 2004, every owner of a colliery and every person engaged
in the business of production, supply and distribution of, or trade and commerce in coal shall submit returns
and information within such time as specified. These reports include as
Monthly return
Quarterly return
Yearly return
These reports has to be submitted by nominated owner to DGM and concerned district Collectorate. Online
submission of reports by owners is mandatory. Again mine owners should ensure proper filling of records
in order to retrieve data as per requirements. Monitoring and review is required to ensure there is no non-
compliance in terms of proper submission of returns and information. Deputy Director or officials delegated
by him should ensure that all returns and information are being submitted within time and with proper
filling.
Further for effective monitoring of reports, authorised officials of DGM shall ensure that return is being
filed by every owner of a colliery and every person engaged in the business of production, supply and
distribution of, or trade and commerce in coal.
Diagram 5.1 shows various non compliances with reference to submission of information and details and
measures to be taken to mitigate them.
Diagram 5.1: Non compliances with reference to submission of information and details and
measures to be taken to mitigate them
P a g e 24 | 46
Delegated person should send a reminder at start of month to all required persons for their timely
submission .Once returns/ information is received, it should be the duty of delegated person to verify the
report and information and to match with other relevant documents (e.g. dispatched amount of Coal can
be matched with Railway Return) and communicate with owners for proper justification in case of any non-
compliance. It will be duty of delegated person to continuously compile the monthly return and to match it
with quarterly and yearly return. It is also advisable that DGM should enforce submission of returns and
information through their online portal to have following advantages:
5.5 Monitoring of Notice of suspension or closure in Compliance with Rule 10 of CCO
I. Under Rule 10 of the Colliery Control Rules, 2004, if the mining operations in a coal mine or seam
or a section of a seam is suspended or closed temporarily or permanently, as the case may be,
for any reason whatsoever, then a notice of such suspension or closure shall be given by the
owner, agent or manager of the colliery within a period of 30 days from the date of such
suspension or closure to the DGM and Collectorate of concerned district. It will be responsibility
of Deputy Director (Mineral Administration) to ensure that all the information and attachment as
mentioned in Table 5.9 has been provided by Colliery Owner:
Table 5.9: List of information and attachments to be provided by Colliery Owner in compliance with
Rule 10 of CCO
Automated data management Datas accessible in one click
Easy retrieval of data/information from anywhere
Transparency in data/information
Submission of returns/information through
online portal for proper monitoring and review
Page 25 of 46
Information & attachment to be provided by Colliery Owner in compliance with Rule 10 of CCO
SL No Information Status(Provided/not provided/Not applicable)
1 Detail of all seams(proved, worked and in
course of working)
1.1 Name of Seam
1.2 Gross Mineable Reserve of Coal
1.3 Production achieved so far
1.3.1 Production achieved from open cast mining
1.3.2 Production achieved from Underground
mining
1.3.2.1 Production achieved from Development
1.3.2.2 Production achieved from Depillaring
1.3.2.2 Grade of Seams or the section of Seams at
the time of closure(All the grades can be
matched with annual grade declaration as
per Rule 4(2) of CCO,2004
2 Reference No/Date of previous opening
permission of/Name of granting authority
3 Date of closure
4 Production during last 3 years prior to
closure
5 Reason of Closure
Attachment to be provided by Colliery Owner
Sl No. Attachment Status(provided/ not provided/Not applicable)
1 Copy of working plan of the mine or seam at
the time of abandonment / closure showing
the extent of workings at the time of closure,
all the goaves, the present waterline in the
abandoned workings and the proposed
layout of the seams to be worked
2 Copy of closure notice if closure notice was
served
3 A vertical section of strata showing thickness
of each seam and the intervening partings in
between seams and up-to-date working plan
of each seam already worked and being
worked
I. Approved annual grades can be used to verify grades of seams while monthly returns can be used
to verify tonnage mined from various seams at the time of closure.
II. If necessary, Deputy Director can initiate spot inspection to verify any of the details submitted by
Colliery owner. In addition, if any of the information/attachment is missing, Deputy Director should
instruct Colliery owners to provide as such as soon as possible.
P a g e 26 | 46
III. Notice of suspension/closure can be matched with regional DGMS offices also as it is mandatory
for colliery owners to submit the closure notice to DGMS office as per Rule 5 of Coal Mine
Regulation, 2017
IV. Format of notice to be submitted by Colliery owners has been provided in Annexure E.
V. Application provision should be made for opening of such suspended or closed coal mine or seam
or a section of a seam. Such application will be made before 30days of such opening
VI. Such suspended or closed coal mine or seam or a section of a seam only will be opened after
having proper permission from such authority.
VII. After proper spot inspection and satisfaction, authority will provide permission for such opening
VIII. Prior permission in writing will be required from Central Government before commencement of
mining operation in a colliery or seam or a section of a seam, in which the mining operation has
been discontinued for a period exceeding 180 days.
IX. Volumetric and tonnage quantity will be matched properly before grant of such permission
Here it has to be noted that In case, where a seam is re-opened within 6 (six) months of temporary
discontinuance, the previous grade prevailing at the time of discontinuance may be restored but when the
period of discontinuance exceeds 6(six) months, the nominated owner shall apply afresh for grade
verification by DGM.
5.6 Framework for inspection of Collieries in compliance with Rule 12 of CCR
As per the power delegated to State Government to inspect all coal mines except the mines or blocks of
Central Government/ Public Sector Undertakings, a framework has been designed here to ensure proper
utilization of said power:
I. Before the start of financial year, Regional Head should prepare a plan for frequency of inspection and
assign responsibility of inspection to a dedicated team of Deputy Directors/Mining Inspectors/Assistant
Mining Officers. Inspection of collieries will also be required if there is any non- compliance from the
colliery.
II. Assignment of particular collieries for regular inspection shall be decided by the rotation mechanism by
way of lottery to respective Deputy Directors/ Mining Inspectors/ Assistant Mining Officers. No Deputy
Director/Mining Officer/ Assistant Mining Officer should be assigned same mine inspection either in same
year or next year.
III. On a similar pattern, Regional Head will initiate any need based/ complaint based inspection.
IV. It will be responsibility of officials who are going for inspection to ensure that mine owners are complying
under rules of CCR, 2004. These officials are empowered to enter and inspect the colliery and In order
to secure compliance of these rules, they can instruct Colliery Owner to furnish any relevant documents,
which may include followings:
Mine Plan
Working Plan
Plan showing abandoned area
Plan showing flooded area
Plan showing areas on fire
Document showing production of Coal from Whole Mine
Document showing production from a Particular Seam
Document showing production from section of a Seam
Document showing approved grade of a seam etc.
V. Following inspections should be ensured by authorized officials:
Spot inspection of working face of a mine should be done in regular basis.
Page 27 of 46
Spot inspection of washeries also to be done.
Regular inspection of updated working plan at independent survey section.
6. Annexure
Annexure Name Description
Annexure A Format For Grade declaration by DMG
Annexure B Data required for Grade/ Quality proposals for annual/ interimly revised
Gradation/ Quality of Coal seams of mines / Siding / CHP/ CSP etc
Annexure C Format for lodging statutory complaints in respect of Grades/quality of coal
Annexure D Format for sampling report
Annexure E Format of notice for closure of mine or seam
Annexure F Format of Grade declaration when coal seam cannot be separate due to method of mining
Annexure G Procedure for third party sampling
Annexure H List of preferred laboratories for analysis of Coal Samples
Annexure I Criteria for rejection of suspect test results
P a g e 28 | 46
Annexure A: Format for Grade declaration
On the Company’s Letter Head
GRADE/QUALITY CERTIFICATE
( Name of Coal Company )
(Name of seam of Colliery/Siding /CHP etc,)
Serial No. of Grade/ Quality Certificate______________dated_________________________________
In pursuance of provisions of sub-rule (2) of rule 4 of Colliery Control Rules, 2004,I being the
competent authority of the company, hereby declare the Grade/Quality of coal Seam Siding( No/
Name)
____________________________________________Section____________in________________
___________________ (colliery) as………(Grade/ Quality with GCV analyzed in a Bomb calorimeter
in case of non-coking coal) to be effective from ______________________( date) in supersession of
all previous declarations, if any.
(Signature of the Nominated Owner)
Name & Designation with seal
The Director, The Directorate of Geology and Mines, Indravati Bhawan, second floor, Block-4, Nava Raipur, Chhattisgarh
Page 29 of 46
Annexure B: Data required for Grade/ Quality proposals for annual/ interimly
revised gradation/ quality of coal seams of mines / siding / CHP/ CSP etc.
1. Name of the mine owner/ company
2. Name of Colliery/Siding/CHP :
3. Name of Seam
4. Thickness of seam
5. Height of working section
6. Vertical Section of Seam Showing all bands indicating Nature and Thickness (working Section
should be indicated by Arrow). This Section should be given for each mine in a Standard Paper
of 29 cm. x 23 cm Size:
7. Analysis of seam samples (Equilibrated basis)
I. Ash%
II. Moist%
III. VM%
IV. GCV by Bomb Calorimeter in K.Cal/kg on air dry basis, i.e., samples equilibrated at 40
degrees C and 60% Relative Humidity
1. Including all bands
I. Site No. 1
II. Site No. 2
2. Excluding pickable bands (of 10cm & above)
I. Site No. 1
II. Site No. 2
8. Additional Analysis results for coking properties (from Govt. Institution / NABL Accredited
laboratory preferably CIMFR, IITs, IIEST, NML-Jamshedpur, IICT- Hyderabad , IMMT –
Bhubaneshwar etc.
9. Analysis results of Wagon Sample/Truck Sample/Belt conveyor Sample/Ropeway Sample/Third
party/Joint sample (on equilibrated conditions basis):
Sample
Details Mean
Random
Reflectance
percent
(RO)
LTGK CSN GCV( done
by Bomb
Calorimeter
in Kcal/ Kg
on dmf
basis
VM
% on
dmf
basis
Carbon
%(dmf)
Hydrogen%(dmf) Moisture
% (60%
R.H.)
parts/100
parts unit
coal
Date Consignee/
Destination
Wagon
No/
Truck
No/ Belt
No
Ash% Moist % VM % GCV
Kcal/Kg
Grade/
Quality
P a g e 30 | 46
10. Analysis Results of Joint Samples:
Consignee Sample no
and date
Ash % Moist % VM % on
dmf basis
GCV
Kcal/Kg
Grade/
Quality
11. Composite grade of CHP/CSP/Siding with mention of proportions of seams and grade wise
despatches in tonnes certifying the maintenance of proportion of mixing of coal from feeder
streams of collieries and distances from colliery end to the dispatch points by the Nominated
Owner, Agent or Manager of the Coal Company
Mine Seam Grade/Quality proposed for
each such qty loaded through
CHP/CSP/Siding.
12. Whether Steam, Slack are suitably graded (the arrangement for segregation should be mentioned
along with likely % of steam and slack in each Grade/Quality included & be declared).
13. In ROM coal, where averages are @ 60% steam, 40% slack, specify the arrangement for limiting
the top size of coal to 200-250 mm
14. Distance between Railway Siding to Pit-Head where surface transportation charges are levied
and the name of the Siding from where the coal will be dispatched by rail/trucks
15. Grade proposed for the year:
Steam Slack ROM
(GRADE/QUALITY) (GRADE/QUALTY) (GRADE/QUALITY)
--------------------------------------------------------------
(Signature of the Nominated Owner with office seal)
Page 31 of 46
Annexure C: Format for lodging statutory complaints in respect of grades/quality
of coal
1. Name and address of the consumer:
2. Name of supplying Colliery and Seam from which Supplied.
3. Approved Grade of Coal:
4. Quality/Grade of Coal actually received by the consumer ascertained by actual analysis on loading point/dispatch point only
(Proximate analysis, ash%, moisture%, volatile matter% on equilibrated basis and GCV in Kcal/Kg analyzed in bomb calorimeter on equilibrated basis i.e., samples equilibrated at 40 degrees C and 60% Relative Humidity for non-coking coals) from any Govt/NABL- Accredited. Laboratory preferably CIMFR, IITs, IIEST, NML-Jamshedpur / IICT-Hyderabad / IMMT-Bhubaneswar etc.
5. Detailed analysis report if available. If not, what is the basis of the complaint?
6. Particulars of Wagons/Trucks and dates of loading
7. Particulars of accompanying Bank Draft of Rs 2500/-.
8. Any other relevant information. Like a copy of FSA or CSA executed by the consumer with the Coal Company should be enclosed to the application.
Date: Place (Signature of the authorized Signatory/ Nominated owner/ for Consumer lodging the complaint with Official Seal
P a g e 32 | 46
Annexure D: Format for sampling report
OFFICE OF THE DGM
SAMPLING REPORT
1. Sample No.:
2. Date of Sampling :
3. Name of Colliery :
4. Name of Owner/Company :
5. Pit/Incline/Quarry :
6. Place of Sampling :
7. Wagon/trucks No:
8. Consignee & Destination :
9. Name of Seam :
a. Including all bands
Site No. 1
Site No. 2
b. Excluding pickable bands (of 10cm & above)
Site No. 1
Site No. 2
10. Provisional/approved Declared Grade
11. Size fraction (ROM/STM/SLK):
12. Method of loading :
13. Method of drawl of samples :( revised procedure laid down by Coal Controller/BIS
14. Name and Designation of the Company representative :
This is to certify that the samples were taken as per revised procedure of sampling laid down by Coal
Controller in our presence.
Signature of the representative of Signature of representative of Nominated Owner of the Colliery DGM wherever applicable with date & seal with date & seal
Page 33 of 46
Annexure E: Format of notice for closure of mine or seam
To
The Directorate of Geology and Mines,
Indravati Bhawan, second floor, D Block, Atal Nagar, Raipur, Chhattisgarh.
Subject: Notice of closing No. ____________________Seam at ___________________
Colliery of ________ _____ (Name of coal company).
1) Name of Coal Mine:
2) Name and Address of the Owner:
3) Status of Firm whether State Public Sector or Private Sector:
4) Location of mine:
Vill: P.O. (With Pin code) P.S:
Dist. State Phone. No.
5) Other Details
a) Total Area : _________________________ Hectares.
b) Acquired leasehold area (also to be shown on the mining plan to be attached)
________________________________________ Hectares
c) Surface rights acquired under L. A. Act: ________________________ Hectares.
d) Mining rights acquired under CBA (ACQ. & DEV.) Act, 1957 __________ Hectares
6) Details of seams so far proved, worked and / or in course of being worked:
Name of Seam
(Local name and
/or Geological
Name)
Gross
Mineable
Reserves of
Coal (MT)
Production achieved
from the seam before closing (‘000 T)
Grade of seams
or section of the
seams at time of
closure*
Open Cast Under Ground
Development Depillaring
*As declared by colliery management as per Rule 4 (2) of The Colliery Control Rules, 2004
Status of overlying and / or underlying seam(s):(A vertical section of strata showing thickness of each
seam and the intervening partings in between seams and up-to-date working plan of each seam already
worked and being worked should be furnished)
7) a) Reference no. & date of previous opening permission and name of granting authority.
b) Date of closure
c) Production during last 3 years prior to closure
P a g e 34 | 46
d) Reason for closure (copy of closure notice to be attached if closure notice was served )
(A copy of working plan of the mine or seam at the time of abandonment / closure showing the extent of
workings at the time of closure, all the goaves, the present waterline in the abandoned workings and the
proposed layout of the seams to be worked should be enclosed.)
8) A brief note in a separate annexure MUST be attached indicating method of Development and/or
Depillaring, extent of manual mining by use of machinery and mechanical devises as approved by
DGMS before closure.
I declare that apart from the above-mentioned provisions, all other statutory provisions in force were strictly
complied with during past mining operation
Signature of GM, Area Signature of Agent/Manager
Signature of Owner/Nominated Owner
(Official Seal of the Company)
Place:
Date: N.B. (Application along with requisite plans and other relevant information to be submitted in
duplicate)
Page 35 of 46
Annexure F- Format of Grade declaration when coal seam cannot be separate due
to method of mining
(On company’s letter head)
CERTIFICATE
1) Name of the Mine/Colliery
2) Name of the Area
3) Name of the Nominated Owner & Company
4) Name of the Agent/Manager
5) Name of the seam
6) Name of the working section
7) Thickness of the working section
8) Thickness of the band
Certified that the above band/bands of the coal seam cannot be separate due to method of mining in vogue. This is also to certify that there will be no percentage (%) deduction from the production of coal on account of the shale/bands.
Signature of the Area General Manager Signature of the Agent With date and seal with date and seal
P a g e 36 | 46
Annexure H: List of preferred laboratories for analysis of Coal Samples
Any Govt. Institution
NABL accredited laboratories
IITs, CIMFR , IMMT-Bhubaneswar
Page 37 of 46
Annexure I: Criteria for rejection of suspect test results
It may sometimes happen that a test result is obtained which deviates considerably from the other test results and therefore arouses suspicion that it may have arisen from a mistake in sampling or sample preparation rather than in the course of normal variation. If the analyst knows that a mistake has occurred, the test result must be rejected irrespective of its magnitude. If however only a suspicion exists, it may be desirable to determine whether such a result may be rejected or whether it must be accepted as part of the normal variation expected.
The process given below should be followed for determining the acceptability or rejectability of the suspect test result:
Arrange all the test results obtained by analysing n laboratory samples in the ascending order of magnitude and designate them as x1, x2,…,xn, where x1 is the smallest and xn is the largest test results. If xn is suspect, calculate the value of K1 from following formulae:
K1= (xn- xn-1)/ (xn- x1)
If x1 is suspect, calculate the value of K2 from following formulae: K2= (x2- x1)/ (xn- x1)
If the calculated value of K1 or K2 exceeds the corresponding one given in below table, the suspect test
result shall be rejected, otherwise not.
The above procedure can also be applied repeatedly to remove the suspect test results other than the
one first removed.
Values of criterion K1 or K2
Sample Size(n) Values of K1 or K2
3 0.941
4 0.765
5 0.642
6 0.560
P a g e 38 | 46
7. Review of existing industry practices followed by Coal India Limited (CIL) and its
subsidiaries in terms of fuel supply agreement (FSA)
7.1 Quantity
7.1.1 Annual Contracted Quantity (ACQ):
I. The Seller shall supply and the Purchaser shall purchase the Annual Contracted Quantity (ACQ) of Coal per annum, as decided by CIL within the recommendation of the State Government. Such Coal shall be supplied by the Seller from own sources of the Seller. The mode-wise, coal field-wise break-up of ACQ is indicated in Schedule - III to this Agreement. In the event of a truncated Year, the ACQ shall be prorated accordingly.
II. Further Purchaser may opt for an ACQ lesser than the quantity allocated by CIL for the Year, subject to submission of a written communication from the nominating authority to that effect. The ACQ can be subsequently revised upward within the quantity allocated by CIL for the Year. Such upward revision will be subject to consent of the Seller and will be allowed only once in a Year. The revised ACQ shall be applicable on pro-rata basis with effect from the date of amendment in the Agreement. Further, any downward revision of original/revised ACQ will not be permitted.
III. Coal sold and purchased under Agreement shall only be sold / distributed by the Purchaser to End Users as defined herein. Further, the Purchaser shall sell Coal to such End Users at the "As declared price of Coal" plus up to 5% margin over Base Price as service charges. The Purchaser shall be also entitled to charge any taxes, levies and any other statutory dues as may be applicable to the sale to the End User in the State of The Purchaser shall ensure that the Coal is sold only to an End User and shall not be re-sold or traded.
IV. The Purchaser shall submit to the State Government, a Quarterly Return giving month-wise, consumer-wise, unit-wise details of Coal sold. Such details should essentially include name, address and contact no. of consumer, type & location of unit, quantity lifted during the month and the price at which Coal was supplied for evaluation of genuine consumption and monitoring of the same by the State Government. Such particulars shall be hosted by the Purchaser and the State Nominating Authority in their respective websites on regular basis.
V. Its mandatory for Purchaser to ensure that Coal will be sold only to the end user. In the event of any breach or any complaint from any quarter received by the Seller/CIL, the same shall be referred to the State Government for examination and suitable action, if any, against the Purchaser. On receipt of any advice from the State Government for action against the Purchaser, the Seller shall be entitled to take appropriate action against the Purchaser including termination of this Agreement. Such termination, however, shall not absolve the Purchaser from its obligations and liabilities under the Agreement
7.1.2 Monthly Quantity:
The Monthly Scheduled Quantity (MSQ) shall be 1/12 th of the ACQ. It is clarified that the (MSQ) can be varied by mutual consent and approval of the Seller and the Purchaser at the time of execution of this agreement.
ln case any further variation in the MSQ is required by the Purchaser, the Purchaser may request the Seller for the same by sending a written notice to lhe Seller at least 30 (thirty) days in advance and such variation shall be subject to the express written acceptance by the Seller, and the Seller shall have the discretion and not the obligation to provide such consent.
In case of supply by Rail, the Parties agree that if the MSQ to be lifted by the Purchaser in a month is insufficient to form adequate load for a rake, such formation of adequate load, as prescribed by seller, for a rake would be allowed by combining the MSQ of the next month(s) of the applicable financial year during the Term of Agreement.
7.1.3 Make-up Entitlement & Make-up Quantities/ Carry Forward
Page 39 of 46
I. The quantity of coal which remains unlifted within the validity period of 45 days from the date of Sale-Order for supply through Road mode against value paid orders will not lapse and will be carried forward with the allocation of next month and so on till the end of the applicable financial year of the contract. However Purchaser may request not to carry forward the order and ask for refund of applicable coal value. Not carrying forward any quantity will not be a ground to seek waiver/reduction in penalty on account of Level of Lifting. In case of Sale Orders issued in the ending months of the applicable financial year of the contract period i.e. February/ March, the same shall be valid till the end of the financial year or 45 days from the date of Sale order, whichever is later.
II. In case of supply through Rail mode, the number of rakes offered but not allotted within the validity period shall remain eligible for seeking allotment in subsequent month(s) till the end of applicable financial year of the contract. However purchaser may opt not to resubmit the program for rakes not allotted and ask for refund of applicable coal value.
III. However such quantity will lapse at the end of applicable financial year of the contract if the residual quantity is less than rake load for rail mode or less than a truck load for road mode. The quantity, which the purchaser did not book by making full payment shall stand lapsed at the end of the month.
IV. In case of bookings by Rail, the allotted rakes will remain valid for supply for the period permissible as per Railway rules. For bookings by Road, in case any quantity remains unlifled after the expiry of 45 days validity period of respective Delivery Orders, the purchaser will have the option to take refund against unlifted quantities or to carry it forward till the end of the applicable financial year of this agreement.
V. In no case annual booking of coal by Road/allotments by Rail under above process shall exceed the ACQ.
7.1.4 Compensation for short supply /lifting
If for a year, the Level of Delivery by the Seller, or the Level of Lifting by the Purchaser falls below 100% of ACQ with respect to that year, the defaulting Party shall be liable to pay compensation (“Delivery Compensation") to the other Party for the shortfall quantity in terms of the following:
Sl no Level of delivery/lifting of coal in a year
Rate of compensation for the Shortfall Quantity (at the rote of Base Price of Grade G7 Grade ROM Coal of the Seller as prevailing on lhe last day of the year)
1 Less than 100% but up to
30 % of ACQ
NIL
2 Below 30% of ACQ 5 %
The Delivery compensation for short delivery/lifting shall be payable by the defaulting Party to the other Party within a period of 30 days from the date of receipt of claim. In the event of non- payment within the due date, the defaulting Party shall be liable to pay interest. However, in the event of non-payment of Delivery compensation by the purchaser beyond 60 days of such claim, the Seller shall be entitled to take any or all remedies including but not limited to encashment of Security Deposit and adjustment against the Coal value lying with Seller and/or termination of Coal supply.
7.2 Quality
The quality of the Contracted Grade of Coal to be supplied at the Delivery Point shall, as far as possible, be within the specifications as set out in Annexure G. The Seller shall take all reasonable steps to remove stones above 250mm (in size), shale and extraneous matters before the loading of the Contracted Grade of Coal. A complaint, if any, regarding the quality of the Contracted Grade of Coal shall be made by the Purchaser giving specific details of the consignment to the General Manager (sales and marketing) of the Seller
7.3 Determination of coal quality
The Purchaser shall be required to inform the Seller in writing, on the Signature Date, whether it proposes
to avail third party sampling from a Third Party Agency in accordance with the terms hereof. In the event
the Purchaser intimates the Seller that it is
P a g e 40 | 46
desirous of availing third party sampling by the Third Party Agency, such facility shall be allowed at
the Delivery Point only and such third party sampling shall be undertaken throughout the Term in
accordance with the procedure set out in Annexure G In the event that the Purchaser is desirous of
availing third party sampling by the Third Party Agency and for any reason whatsoever, the third party
sampling cannot be conducted in accordance with the procedure set out in Annexure G, the
Purchaser may opt for joint sampling and analysis to be carried out by the Seller in presence of the
Purchaser at the Delivery Point in accordance with such procedures as may be agreed upon between
the Parties; and
not desirous of availing third party sampling, the Purchaser would not be entitled to avail the said
facility at any time during the Term. Notwithstanding anything to the contrary contained herein, in the
event that the Purchaser does not opt for third party sampling by a Third Party Agency, it shall be
obligated to pay, throughout the Term, the As Delivered Price in respect of the Contracted Grade of
Coal delivered to it and shall not, in any way be entitled to benefit from or rely on the results of third
party sampling availed by any other purchaser of Coal. In case of a variation of Grade of Coal
(decided on the basis of third party sampling by a the Third Party Agency) as compared to the
Contracted Grade of Coal, the Purchaser shall pay the Notified Price (or the latest Indexed Notified
Price, as the case may be) of the supplied Grade of Coal plus the Winning Premium of the supplied
Grade of Coal, without factoring in royalty payments, taxes etc.
Page 41 of 46
Annexure G: Procedure for Third party sampling for non-power sector
a. Third Party Agency (TPA) Under Different Modes Of Supply
a.1. Third Party Agency for dispatches by Rail / conveyor Bert/Rope way/pipeline
a.1.1. In case of off-take of the contracted Grade of coal via Rail / Conveyor Belt / Rope way / Pipe line,
the purchaser may choose a third party agency to conduct the third party sampling from list of
independent third parties provided by CIL from time to time
a.1.2. The third party agency chosen by the purchaser shall conduct the third party sampling throughout
the Term / period as applicable, provided that the purchaser may change (on reasonable grounds)
the third party agency chosen by it with prior written approval of the Seller. In the event that the
seller does not accept the request of the purchaser for change in the third party agency the
purchaser shall have the option to:
a.1.3. terminate the arrangement for third party sampling availed by it hereunder, in which case, the
purchaser shall not be entitled to resume the third party sampling at any time during the remainder
of the Term or
a.1.4. to continue the arrangement for third party sampling for the remainder of the term with the existing
third party agency chosen by it
a.1.5. Third party sampling shall be done at the Delivery point and the costs in this regard shall be borne
equally by the Purchaser and the Seller.
a.2. Third Party Agency for dispatches by Road
a.2.1. In case of off-take of the contracted Grade of coal via road mode, the Seller shall choose third
party agency to conduct the third. party sampling from list of independent third parties provided by
CIL from time to time. It is clarified, that the seller shall have the sole discretion and right to replace,
substitute or change the third party agency chosen by it.
a.2.2. The third party agency chosen by the Seller shall conduct the third party sampling throughout the
Term / period as applicable, provided that the purchaser may make a written request (on
reasonable grounds) to the seller to change the third party agency chosen by the seller. In the
event that the Seller does not accept the request of the purchaser for change in the third party
agency, the purchaser shall have the option to terminate the arrangement for third party sampling
availed by it hereunder, in which case, the purchaser shall not be entitled to resume the third party
sampling at any time during the remainder of the Term or to continue the arrangement for third
party sampling for the remainder of the Term with the existing third party agency chosen by the
Seller.
a.2.3. Third party sampling shall be done at the Delivery Point and the costs in this regard shall be borne
equally by the Purchaser and the Seller.
b. Detailed Modalities for Third Party Sampling
b.1. ln order to commence third party sampling, a tripartite agreement will have to be signed amongst
the Seller (First Party), the Purchaser (Second Party) and the TPA (Third Party). The format of
tripartite agreement shall be provided by Seller.
b.2. Detailed terms and conditions of TPA engagement / work including Referee SOP/ sharing of cost
of sampling etc. shall be in accordance with Tripartite Agreement.
b.3. Collection and preparation of samples may be witnessed only by the authorized representatives
of Seller and Purchaser. In case the authorized representative of either party is not present or
does not witness the sample collection and preparation activities, the said work shall be continued
by TPA irrespective of non-witnessing by either party. Absence and / or failure to witness shall not
be considered as a ground for disputing the result by either party. At any point of time, only one
authorized representative each from Seller's side and Purchaser's side shall be allowed to be
present during the sample collection and preparation activities
b.4. The TPA shall communicate the analysis result(s) of the sample(s) to the Seller and Purchaser
within fifteen (15) days from the date of sample collection. The Seller/ Purchaser may raise dispute
if any, against the findings of the TPA within seven (7) days after the submission of the analysis
result(s), excluding the date of submission of the analysis results by the TPA
P a g e 42 | 46
c. Collection of Sample by Third Party Agency: Samples of Coal shall be collected by the Third
Party Agency from the Delivery Point as follows:
c.1. Collection of samples from loaded wagons (Rail and MGR)
c.1.1. In case of dispatch by rail each rake of Coal supplied to the Purchaser from the Delivery Point shall
be considered as a lot for the purpose of sampling.
c.1.2. In case of Coal dispatches through MGR the sample collected from each rake (source wise, grade
wise and Consumer wise) loaded from the respective Delivery Point during the day shall be pooled
together to form a gross sample for the day.
c.1.3. Each rake shall be divided into a no. of sub-lots in a manner that the quantity of Coal / number of
wagons in such sub-lots is more or less equal. One sample shall be collected from each sub-lot.
The number of sub-lots shall be determined as shown in following table :
c.2. Collection of Samples of Coal Dispatches by Road: Samples shall be collected source-wise and
grade-wise on daily basis round the clock, depending upon the timing of loading at respective
dispatch point(s) only from the trucks of the purchaser (s) who have opted for third party sampling
("Purchasers Opting for Sampling") in the manner specified below:
c.2.1. The first sample of Coal shall be collected from the first truck at the Delivery Point belonging to a
Purchaser Opting for Sampling. Once a sample is collected from the first truck as stipulated above,
samples of Coal shall be collected from every 8th (eighth) truck after the truck from which the first
sample has been collected. In the event that such 8th (eighth) truck does not belong to a Purchaser
Opting for Sampling, then the next truck belonging to a Purchaser Opting for Sampling shall be
deemed as the 8th (eighth) truck and a sample shall be collected from such truck. The same process
shall be repeated for every 8th truck thereafter
c.2.2. The spot at the top of the truck will be leveled and at least 25 cm of Coal surface shall be
removed/scrapped from the top and the place will be leveled for an area of 50 cm by 50 cm for
collection of sample.
c.2.3. About 30 kg of the sample shall be collected from each truck by drawing 6 increments of approx. 5
kg each with the help of shovel/scoop.
c.2.4. All the samples collected from source wise, grade wise from every 8th truck in accordance with
paragraph (ii) as above on daily basis shall be mixed together to form a gross sample.
c.3. Collection of Samples of coal from Conveyor Belt / Ropeway / Pipelines
c.3.1. Samples shall be taken Iot-wise, grade-wise
c.3.2. The quantity that passes over the conveyor (directly or through rope way / pipeline) in a day (00 hrs
to 24 hrs) constitutes one lot, which needs to be divided into a no. of sub-lots for the purpose of
sampling. No. of sub-lots to be divided & quantity of gross sample to be collected from sub lots shall
be as below:
Number of Wagons in one Lot Number of Sub Lots/Samples
Up to 30 wagons 4
>30 wagons up to 50 wagons 5
>50 wagons 6
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Wt. of the Lot (Tons) No. of sub-lots/gross Samples Qty to be collected (Kg)
Up to 500 2 100
501 to 1000 3 150
1001 to 2000 4 200
2001 to 3000 5 250
Over 3000 6 300
Example
• If the quantity to be passed in a day over the conveyor is 600 tons (which is 1 Lot), then there will
be 3 sub-lots and total sample quantity will be 150 kg
• 1 gross sample shall be collected from 1 sub-lot, @ 50 kg per sub-lot. Thus, total 150 kg gross
sample shall be collected from 3 sub-lots over the whole day, i.e. from 00 hrs to 24 hrs
• If conveyor is operated for l5 hours in a day, spacing the collection of 150 kg over 15 hours of
conveyor operation, we need to collect 10 kg every 1 hour (quantity & intervals can be mutually
decided by seller & purchaser depending on the running time of the conveyor and the quantity that
passes in a day)
c.3.3. The belt needs to be stopped at the scheduled time to facilitate collection of the samples manually.
c.3.4. While collecting the sample, the scoop should traverse the entire cross-section of the conveyor belt,
drawing app 5kg per increment
c.3.5. There shall be one gross sample for the day mixing all the gross samples collected from all the sub
lots during a day.
d. Preparation of laboratory samples
d.1. The gross sample collected at the Delivery Point by the Third Party Agency shall be divided into
two portions. One portion (one fourth of the gross sample) called Part-1 will be used for analysis of
total moisture and the other portion (three fourth of the gross sample) called Part-2 will be used for
determination of ash, moisture and GCV on equilibrated basis.
d.2. The Part-2 sample shall be reduced into a laboratory sample on the date immediately following the
date of collection as per BIS Standards (IS: 436 (Part I/Section I) – 1964(Latest Version).
d.3. Final Laboratory samples shall be in the size of 12.5 mm for determination of Total Moisture and in
the size of (-) 212 micron IS sieve for determination of ash, Equilibrated Moisture (at 40oC and 60%o
RH) and GCV. Due care shall be taken by the TPA to ensure that the final lab sample is essentially
in (-) 212 micron size before the same is collected from the loading point(s) so that no further sieving
or pulverizing is warranted at the laboratory before analysis.
d.4. The final pulverized sample will be divided into four parts viz. Set – I, Set – II, Set-III and Set-IV of
500 grams each as detailed below
d.4.1. Set – I shall be taken by the Third Party Agency to a NABL Accredited Laboratory for analysis of
ash, moisture and GCV(on equilibrated conditions' basis at 40o and 60% RH as per latest BIS
Standard (IS: 1350 Part-I-1984), (IS: 1350 Part-II-1970), as applicable;
d.4.2. Set-II of the sample shall be handed over by the Third Party Agency to the Seller
d.4.3. Set-III of the sample shall In case of rail mode other than road be handed over by the Third Party
Agency to the Purchaser; and in case of road mode, be handed over in equal portions to all of the
Purchasers Opting for Sampling on that particular day; and
d.4.4. Set-IV of the sample called referee sample shall be sealed jointly by the Third Party Agency(TPA)
in the presence of authorized representatives of each of the Parties (in case of mode other than
road) or representatives of each of the Purchasers Opting for Sampling (in case of road mode), as
the case may be, and shall be kept in custody of TPA at the Delivery Point(Loading Point) under
proper and good quality lock and key arrangement. The referee sample shall be retained in double
sealed condition (duly signed by the Third Party Agency and the representatives of the Parties or
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the representatives of the Purchaser Opting for Sampling, as the case may be) for minimum 30
(thirty) days from the date of sample collection, beyond which it may be destroyed after necessary
details are properly recorded by TPA. For the purpose of Referee Analysis, the referee sample(s)
shall be packed and transported by the TPA in a tamper proof manner, to the satisfaction of seller
and Purchaser(s), to the referee lab from the loading points. The Seller and Purchaser (s) can
exercise the liberty to accompany the TPA to the referee laboratory at their own expenses.
d.4.5. Samples shall be collected, packed and transported by the TPA to the sample preparation site(s)
at the loading points in such a manner so as to make them tamper proof to the satisfaction of both
the Seller and Purchaser (s) for which detailed procedure may be worked out at the Delivery Point
(loading Point) jointly by representatives of the Seller, Purchaser(s) and TPA.
d.4.6. In case of dispute, the referee sample shall be analyzed by a government laboratory (other than the
Laboratory at which the original sample has been analyzed by a Third Party agency). The analysis
and transportation cost of the referee sample shall be borne by the challenging / disputing parties.
The non-disputing party(ies) may witness transportation and analysis of referee sample to the above
mentioned government laboratory of their own cost. The findings of such government laboratory,
post analysis of the referee sample, shall be binding only on the challenging / disputing parties and
the non-disputing parties shall be bound by the findings of the Third Party Agency.
e. Analysis of Samples
e.1. Total Moisture determination shall be done by the TPA at the nearest laboratory of the Seller and
remaining tests / analysis for determination of moisture, ash, GCV on equilibrated Basis shall be
done by the TPA at NABl-accredited laboratory
e.2. Analysis of sample(s) shall be carried out as per latest version of IS 1350 (Part-I)-1984 for
determination oi Total Moisture, Equilibrated Moisture, Ash and Volatile Matter and as per latest
version of IS 1350 (Pa(-II), 1970 for determination of GCV'
f. Records of Samples/ Third Party Sampling
Proper analysis records like electronic print out of the analysis results obtained from the Automatic Bomb
Calorimeter, source wise, grade wise and date wise details of coal samples received etc. shall be
maintained at the Laboratories where the coal samples are analyzed by the Third Party Agency for
identification and reconciliation of the analysis results.. Coal samples shall be analyzed only at an NABL
Accredited coal testing Laboratory
Monthly statements containing the details of each and every analysis result source wise, mode wise, grade
wise and consumer wise finalized during a month based on analysis by a Third Party Agency or referee
analysis, as the case may be, shall be prepared by the TPA and submitted to the seller and
purchaser(s)before 5th of the following month stating inter alia, the quantity of Coal covered against the
respective analysis results. Copies of the monthly statement / report shall be submitted by the Third Party
Agency to
f.1. the General Manager (Quality Control) of the Seller or his representative; and
f.2. the representatives of the Purchaser (in case of mode other than road) or the representatives of all
the purchaser(s) who have requested for third party sampling (in case of road mode), as applicable.
g. Joint Sampling: Procedure of collection, preparation and analysis of coal sample will be same with
following necessary changes:
g.1. Sample will be collected and prepared by Seller's facilities.
g.2. The final laboratory sample will be divided into two parts. First part Set-l of sample will be analyzed
by seller and second part Set-ll will be kept for referee analysis.
g.3. Analysis of the sample will be done in Seller's laboratory
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g.4. Cost of sampling and analysis will be borne by the seller, so there will be no requirement of sharing
of cost of sampling between seller and purchaser.
g.5. Cost of referee sample analysis in a designated Government Laboratory including cost of
transportation of sample will be borne by the disputing party.
g.6. Purchaser shall associate / witness in throughout the collection, preparation and analysis. However,
absence and / or failure of Purchaser(s) to associate / witness shall not be considered as a ground
for disputing the process / results.
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8. Capacity Addition and review of facilities with DGM
8.1 Quality addition:
All concerned Mining Inspectors, Assistant Mining Officers, Mining Officers need to have
practical training regarding collection of coal samples in following cases(Annexures and clauses
have been quoted for theoretical training)
Seam Sampling (Channel Sampling): Annexure H
Sampling from static loaded wagons: Clause 5.3.5
Sampling from loaded trucks: Clause 5.3.6
Sampling from conveyor belts: Clause 5.3.7
Officials needs to be trained related to surveying activities
All concerned Mining Inspectors, Assistant Mining Officers, Mining Officers need to have
practical training regarding reduction(Coning & Quartering) of Coal samples to required weight
: Clause 5.3.2
All these officials need to have basic training regarding understanding of mine plan and other
laws of mining
Bilaspur Lab needs to be equipped with following Equipment
TGA (Thermo Gravimetric Analyser): to measure ash content
CHNSO Analyser
“60% humidity coal standard material”
8.2 Quantity addition
All districts who have got Private and State owned coal Mines need to have at least one Deputy
director, Mining Officer, Mining Inspector and Assistant Mining Officer, who will be required to
fulfill the compliance in terms of CCR, 2004 else responsibility need to be given to other
districts/regional officers
A surveyor will be required for mining surveying purposes (Stock measurement, Face
measurement)
These districts also need to have one dedicated person to look after all administrative
works(Monitoring of returns, data analysis etc)
