A STUDY ON SALES AND DISTRIBUTION OF COAL IN CENTRAL COALFIELD LIMITED (CCL), RANCHI By RAHUL GAURAV (Reg. No.

:35080433) UNDER THE GUIDANCE OF MRS. K. VASANTHI KUMARI (Assistant Professor) A PROJECT REPORT Submitted to the department of MBA SRM SCHOOL OF MANAGEMENT In partial fulfillment of the requirements For the award of the degree Of MASTER OF BUSINESS ADMINISTRATION

In SRM SCHOOL OF MANAGEMENT SRM UNIVERSITY KATTANKULATHUR, CHENNAI MAY 2010

BONAFIDE CERTIFICATE
Certified that this project report titled A STUDY ON SALES AND DISTRIBUTION OF COAL IN CENTRAL COALFIELD LIMITED (CCL), RANCHI Is the bonafide work of Mr. RAHUL GAURAV (Reg.no.35080433) who carried out the research under my supervision. Certified further, that to the best of my knowledge the work reported here in does not form part any other project report or dissertation on the basis of which a degree or a award was conferred on an earlier occasion on this or any other candidate.

Mrs. K. VASANTHI KUMARI

(Assistant Professor)

Dr. JAYASHREE SURESH (Head of the Department)

ACKNOWLEDGEMENT
I owe everything in my life to other. A person single headed can achieve nothing. In my attempt to do the project many people have graciously extended their guidance, advice and criticism to improve my work. I wish to express my heartiest thanks to our Dean Dr. Jayshree Suresh for providing infinite facilities, and giving me an opportunity to does this project work successfully. I express my sincere thanks to my project internal guide Mrs. K. Vasanthi Kumari for his guidance and valuable suggestions, which made this project, a successful one. I express my gratitude to CENTRAL COALFIELD LTD. (CCL), RANCHI for providing me the opportunity to undertake this project in their esteemed organization. My gratitude also extends to the staffs of the department whose words of encouragement kept the spirits high throughout the course of my project.

DECLARATION
We hereby declare that this project work entitled SALES & DISTRIBUTION OF COAL IN CENTRAL COALFIELD LTD.(CCL) submitted at SRM School of Management studies is partial fulfillment of the requirement for the degree of Master of Business Management is a record of original work done by me for the department of business administration. It has not been submitted to the award of any degree/fellowship or other similar title to any candidate of university.

Place: Date: -

Chennai

Signature of student RAHUL GAURAV (Reg.no. 35080433)

CONTENTS

Sl. No. CHAPTER I 1.1 1.2 1.3 1.4 1.5 CHAPTER II 2.1 2.1 2.2 CHAPTER III 3.1 3.2 CHAPTER IV 4.1 4.2 CHAPTER V 5.1

TITLE NAME Introduction of the Study Significance of the Study Scope of the study Objectives of the study Limitation of the study Company Profile Marketing Mix FSA (Distribution) Research Methodology Data analysis & interpretation Findings Recommendations Conclusion Appendices Bibliography

Page No.
2 3 4 4 4 6-9 10-18 19-25 27-30 31-39 41 42 44 45-46 47

CHAPTER I INTRODUCTION

1.1 INTRODUCTION OF STUDY The study is focus on sales and distribution of coal. SALES AND DISTRIBUTION Sales and Distribution System is specifically developed for the company, which has high volume of sales with wide distribution network. It can be a Pharmacy, Liquor, Consumer Electronics or Export Companies. This application keep track of all sales which happens either through depot, channel or through any other mode, even it keep a track of all inventory of dealers or depot and respective other details which are normally required by management for day to day reporting. SALES A sale is the pinnacle activity involved in selling products or services in return for money or other compensation. It is an act of completion of a commercial activity. A sale is completed by the seller, the owner of the goods. It starts with consent (or agreement) to an acquisition or appropriation or request followed by the passing of title (property or ownership) in the item. DISTRIBUTION Distribution (or place) is one of the four elements of marketing mix. An organization or set of organizations (go-betweens) involved in the process of making a product or service available for use or consumption by a consumer or business user.

1.2 SIGNIFICANCE OF STUDY This study has enabled me to understand the company policy, rules and regulation regarding sales and distribution. In my project I study the distribution policy of CCL. CCL follow various rule and regulation to provide coal to its customers. The various departments under CCL. For instance, In CCL there are mainly four departments such as I. II. III. IV. Personnel department, Finance department, project and planning department operation department

My training under was sales and marketing department which comes under operation department.

1.3 SCOPE OF THE STUDY 9 The scope of the study is confined to the detailed study of coal and about the organization & identifies the companys position in the coal industry and to suggest means of improvements in the existing system. 9 This study helps us to understand the working culture of organization like Central Coalfield Limited. 1.4 OBJECTIVES OF THE STUDY Primary 9 The main objective of the study is to sales and distribution of coal in CCL, Ranchi. Secondary 9 To understand the working culture of a company. 9 To understand the utilization of coal. 9 To know the method of distribution of coal to the customer. 9 To understand the organizational set of a company

1.5 LIMITATIONS OF STUDY 9 The study was for short period. 9 Study is conducted considering the prevailing conditions which may change in the future.

CHAPTER II COMPANY PROFILE

2.1 COMPANY PROFILE COAL INDIA LIMITED TYPE-PUBLIC SECTOR UNDERTAKING GOVERNMENT OWNED FOUNDED- 1975 HEADQUARTER- (KOLKATA,WEST BENGAL) INDUSTRY- COAL AND LIGNITE EMPLOYEES- 4.5 lacs, 2008

Coal India Limited (CIL) is a public sector undertaking in India. It is the largest coal mining company in India and in the World. It is owned entirely by the Union Government, under the administrative control of the Ministry of Coal. It is involved in coal mining and production industry. Coal India Limited was formed in 1975.Now it has 8 subsidiaries and one research centre.

1. Bharat Coking Coal Limited (BCCL), Dhanbad, Jharkhand 2. Central Coalfields Limited (CCL), Ranchi, Jharkhand 3. Western Coalfields Limited (WCL), Nagpur, Maharashtra 4. Eastern Coalfields Limited (ECL), Asansol 5. Mahanadi Coalfields Limited (MCL), Sambalpur, Orissa 6. South Eastern Coalfields Limited (SECL), Bilaspur 7. North Eastern Coalfields Limited (NECL), Guwahati 8. Northern Coalfields Limited, Singrauli (NCL,Singrauli)

R RESEARCH CENTRE 1. Ce entral Mine Planning P and d Design Ins stitute Limite ed (CMPDIL L), Ranchi

CENTRAL COALFIELD LIMITED (CCL) HISTORICAL MARCH TO THE ORIGIN OF CCL 1925 1944 1956 1959 1972 1973 1975 1986 2004 NOV 2007 FIRST NATIONALISATION OF COAL mining by Railway Board. Railway Collieries transferred to Coal Board Under Coal Commissioner. Formation of Public Sector Company - National Coal Development Corporation Ltd. with 11 State owned collieries, Production 3.11 M.T. First Washery of NCDC Kargali Nationalization of Coking Coal Mines. Nationalization of Non-Coking Coal Mines CENTRAL COALFIELDS LIMITED reorganised in November under Coal India Limited -- Holding Company. Truncating of CCL, Formation of NCL (Singrauli) and MCL (Talc her). 11 Areas, 65 Mines It is awarded by MINIRATNA STATUS.

Nationalization Coking coal is nationalized in 1972 and non-coking coal is nationalized in 1973. There are two companies in India for Mining of coal:(1) CIL (2) SCCL (Singarani Coal Consumer Ltd.), Andhra Pradesh Presently CCL has 63 Mines Number of Mines (31Underground & 32 Opencast mines) Washeries 7 Washeries 4 Medium Coking Coal Washeries

3 Non-Coking Coal Washeries 1 Central Workshop Workshop 5 Regional Workshop (The Central W/S & 3 Regional W/S are ISO 9001) Operating Coalfields 6 (East Bokaro, West Bokaro, North ,South Karanpura, Ramgarh & Giridih) ORGANISATIONAL SETUP OF CCL The company is managed by Board of Director and is headed by chairman cum Managing Director (CMD), assisted by group of staff officer looking after different department. Chairman (Coal India Limited) Board of Director +CMD of all subsidiaries (CCL) Director Director Director (Personnel) (Finance) (Project & Planning) Karanpura

Director (Operation)

GM (Sales & Marketing) Deputy Chief sales manager Sales Manager Deputy sales manager Senior sales officer Sales officer

2.2 MARKETING MIX The marketing mix was first developed by McCarthy over 40 years ago. It was designed to suggest that we have a balance mix of marketing in our marketing plan.

Elements of the marketing mix - the 4 Ps Product Defining the characteristics of our product or service to meet the customers' needs. Price Deciding on a pricing strategy. Even if we decide not to charge for a service, it is useful to realize that this is still a pricing strategy. Identifying the total cost to the user (which is likely to be higher than the charge we make) is a part of the price element.

Promotion This includes advertising, personal selling (e.g. attending exhibitions), sales promotions (e.g. special offers), and atmospherics (creating the right impression through the working environment). Public Relations are included within Promotion by many marketing people (though PR people tend to see it as a separate discipline). Place Looking at location (e.g. of a library) and where a service is. PRODUCT PROFILE Coal is an organic matter and is a product of sedimentary environment. As geological processes apply pressure to dead biotic matter over time, under suitable conditions it is transformed successively into

Peat, considered to be a precursor of coal, has industrial importance as a fuel in some regions, for example, Ireland and Finland. Lignite, also referred to as brown coal, is the lowest rank of coal and used almost exclusively as fuel for electric power generation. Jet is a compact form of lignite that is sometimes polished and has been used as an ornamental stone since the Iron Age. Sub-bituminous coal, whose properties range from those of lignite to those of bituminous coal are used primarily as fuel for steam-electric power generation. Additionally, it is an important source of light aromatic hydrocarbons for the chemical synthesis industry. Bituminous coal, dense mineral, black but sometimes dark brown, often with welldefined bands of bright and dull material, used primarily as fuel in steam-electric power generation, with substantial quantities also used for heat and power applications in manufacturing and to make coke. Anthracite, the highest rank; a harder, glossy, black coal used primarily for residential and commercial space heating. It may be divided further into metamorphically altered bituminous coal and petrified oil, as from the deposits in Pennsylvania.

On the basis of caking property:1. Coking coal 2. Non-coking coal

On the basis of size:1. ROM (Run Over Mines) 2. Steam (more than 250 mm) 3. Slack (less than 250 mm)

On the basis of basification:1. Washed coal:- Ash percentage 24-35% 2. Washer coal power:- Ash percentage 15-20% 3. Rejects:- (stone +coal) 4. Slurry :- Fine particles of coal GRADES OF COAL:-

1.

Coking coal a) Steal grade 1 (less than 15%) b) Steal grade 2 (15-18%) c) Washery grade I (18-21%) d) Washery grade II (21-24%) e) Washery grade III (24-28%) f) Washery grade IV (28-35%)

2.
A.

Non-coking coal SPECIFICATION UHV Exceeding 6200 kilo calories/kg

GRADE

B. C. D. E. F. G.

UHV between 6200-5600 kilo calories/kg UHV between 5600-4940 kilo calories/kg UHV between 4940-4200 kilo calories/kg UHV between 4200-3360 kilo calories/kg UHV between 3360-2400 kilo calories/kg UHV between 2400-1300 kilo calories/kg

Coal availability in India

PEOPLE (CUSTOMER)

TYPES OF CUSTOMER:1. Existing Customer 2. New Customer

Following are the list of customer:1. Steel industry 2. Power houses 3. Fertilizer 4. Sponge iron 5. CPP (Captive power plant) 6. Brick making 7. Chemicals 8. Paper 9. Textile 10. CPSU (central/public sector unit) 11. State agency 12. Others

PLACE (COAL INDIA LIMITED) 1. Jharkhand 2. Orissa 3. Madhypradesh 4. Chhattisgarh 5. Assam 6. Maharashtra 7. West Bengal 8. Utter Pradesh PLACES OF DISPATCH (SUPPLY) FROM CCL:1. Delhi 2. Jharkhand 3. Bihar 4. Orissa 5. West Bengal 6. Punjab 7. Haryana 8. Utter Pradesh 9. Jammu Kashmir

MODE OF TRANSPORTATION:1. Rail 2. Road 3. Belt 4. Trolley 5. Ropeway 6. Merry go round METHOD OF MINING:1. Open cast(32) 2. Underground(31) METHOD OF LOADING:1. CHP 2. Pay loader WEIGHBRIDGE:1. Static 2. In motion

AREA OF CCL:1. Argada Gidi A, Gidi washery, sirka 2. Barka seyal Bhurkunda, saunda, central saunda, sayal 3. Kuju- NR, Chainpur 4. Hazaribagh 5. Piperwar- Bachara, RCM(Rai ,churi manki) 6. NK(north karanpur)- KDH,Dakra 7. Dhori-selected dhori, tarmi, Dhori new 8. Kathara- Jarangdih II 9. B & K- Jarangdih I, Giridih 10. BCWD (Beneficiated coal washery devision)- Kathara, swang ,Kargali washeries 11. Rajrappa- Rajarappa washery

RAILWAY ZONE COVERD BY CCL:1. South eastern railway Rajrappa 2. Central railway- Giridih 3. East central railway-rest area

PRICE Domestic Price Fixation Government of India deregulated the prices of Non-Coking Coal of grades A, B & C, Coking coal and Semi/Weakly coking coal on 22.03.1996. Subsequently, on 12.03.1997, Government of India deregulated the prices of non-coking coal of grade D, Hard Coke and Soft Coke and also allowed Coal India Ltd. to fix coal prices for grades E, F & G till Jan2000 once in every six months by updating cost indices as per escalation formula contained in the 1987 report of the Bureau of Industrial Cost & Prices. With effect from 01.01.2000, CIL was free to fix the prices of such grades of coal in relation to the market prices.

Basic Price of Run of Mine Non-Long-Flame Non-Coking Coal (In Rupees/ Tonne) Field/ Co. ECL(for 8 Annex II) units vide A 1490 B 1340 1520 1310 1330 1220 1110 1030 C 1120 1300 1090 1110 1000 950 860 D 900 1080 900 910 840 800 720 E 680 860 890 720 720 670 660 560 F 530 640 760 570 570 530 520 440 G 370 420 610 410 410 390 390 320

ECL/ Mugma(for 16 units 1710 vide Annex IV) ECL/ Rajmahal BCCL CCL NCL SECL MCL 1440 1470 1350 1190 1160

2.3 FSA (DISTRIBUTION) In supersession of existing coal distribution policy for core and non-core sector and other instructions issued in this regard from time to time, the Government is pleased to approve the new coal distribution policy. The new policy is as follows: 1. Classification of consumers: The existing classification of consumers into core & non-core has been reviewed and it has now been decided to dispense with the same. Instead, each sector/consumers would be treated on merit keeping in view, inter-alia, the regulatory provisions applicable thereto and other relevant factors. 2. Distribution and pricing of coal to different consumers/sectors(s):2.1 Requirements of defence sector and railways will be met in full at notified price, as at present. 2.2 Power utilities including in depending power producers (IPPs)/captive power plants (CPPs) and fertilizer sector. 100% of the quantity as per the normative requirement of the consumers would be considered for supply of coal, through FSA by CIL at fixed prices to be declared/notified by CIL. The units/power plants which are yet to be commissioned but whose coal requirement has already been assessed and accepted by ministry of coal and linkage/letter of assurance (LOA) approved as well as future commitments would also be covered accordingly. 2.3 Other consumers

75% of the quantity as per the normative requirement of the consumers actual users would be considered for supply of coal through FSA by CIL at notified price to be fired and declared by CIL. The balance 25% of coal requirement of the units will be sourced by them through e-auction/import of coal etc.

3. Consumers in small and medium sector:The state govt. Are requested to work out genuine requirements of such units on small and medium sector like smokeless fuel, brick kiln, coke even units etc. On a transparent and scientific basis and distribute coal to them accordingly. The state govt. may take appropriate steps to evaluate the genuine consumption and monitor use of coal. The present cap is also enhanced to 4200 tonnes per annum for the targeted consumers under this category. 4. Replacement of linkage system by FSA :The linkage system will be replaced with a more transparent with a more transparent with a more transparent bilateral commercial arrangement of enforceable FSAs. All the existing valid linked consumers whose linkage/MPQ during the year 2006-07 was 4200 tonnes or more would have to enter FSAs with coal companies not later six months from a date to be notified by CIL. 5. Policy for new consumers. The letter of Assurance (LOA) to be issued now pursuant to the new policy will have a validity of 24 months for consumers/applicants of power utilities. CPPs & IPPs and 12 month for other consumers instead of 30 month as earlier. The allotted of LOA would be required to fulfil certain stipulated conditions and meet the milestone within this period and there upon approach coal companies for entering into FSA, such FSA would be completed within three months. 6. Letter of Assurance for new consumers:-

New consumers from state/central power utilities, (PPS independent Power Producers (IPPs). Fertilizer, cement and sponge iron units may be issued LOA, based on prevailing norms and recommendation of Administrative Ministry, which may inter-alia have regard to LOA/Linkage already granted to the consumer of specific sector, existing capacity, requirement for capacity addition during a plan period etc. 7. FSAs with New Consumers:On successfully achieving the milestones stipulated in LOA Coal companies would execute FSA with the applicant consumer covering commercial arrangement for supply of coal. FSAs would be inter-alia, based on Take or Pay principle. 8. Role of standing linkage committee:The existing SLC LT) will continue to recommend issuing of LOA in respect of Power Utilities including CPPs & IPPs, cement and sponge iron, including steel, as is being done at present. It may also perform other function as per its terms of reference for coal sector as a whole. 9. Discipline and economy in coal use:Coal is no longer an essential commodity but it is still considered a scarce fuel and hence it must be used efficiently and economically. The consumers getting coal through FSA would be expected to use it efficiently so as not to waste this scarce resource and hence norms and efficiency compliance should be carried out diligently by the concerned designated authority/agencies. 10. E-auction of coal:Coal distribution through e-auction was introduced with a view to provide access to coal for such consumers who are not able to source coal through the available institutional mechanisms for reasons like the seasonality of coal requirement, limited requirement of coal not warranting long-term linkage etc, In the long run, it is expected that e-auction may help in creating spot as well as future market of coal in the country. 11. Verification of erstwhile noncore sector consumers

CIL would undertake verification of such consumer of erstwhile non-core sector consumers, in a time bound manner, either directly or through an agency, so as to check the veracity of their claim of being bonafide consumers of coal and thereafter act accordingly.

FUNCTION OF SALES DEPARTMENT:The main function of sales department is to dispatch of goods. There are eight sections.

1. 2. 3. 4. 5. 6. 7. 8.

TRAFIC SECTION:- Deal with railway for supply of rake.( A.K. Verma, M.S. Bhutani, Jitendra singh) Road sales section:- This section take care of all the activity related to supply of coal through roadways.(A.P.Trivedi,Ajit singh, Shiv sharan, Sunil) Legal Section:- This section concerned with legal dispute settlement. Customer grievance comes under this department. (R.B.Lal) FSA (Fuel Supply Agreement) Section:- This section take care of agreement with customer. (Hitesh Verma) E- auction:- Work related with auction is known as e-auction.(Rajesh Mishra) SCP (Sales Co-ordination and Planning):- yearwise, monthwise, areawise, sidingwise, sectorwise, dispatch planning(Rajesh Mishra, N.K.Minz) Sales Administration:- All the stationary and official items are provided by sale Administration.(R.B. Lal) Sales Realisation:- All the coal supply on the basis of advance money. When the advance money become more or less then this department take care of this type of activity.(D.K. Acharya, Hitesh Verma)

MODE OF SUPPLY OF COAL:-

1. 2.

Railway Roadways

E-AUCTION:There are two companies who conduct auction for CCL. 1. MSTC 2. Metajunction There are two types of auction:1. Spot e-auction-on date 2. Forward e-auction-for the next quarter Terms & Conditions of Spot e-Auction Scheme 2007

Objective: Coal distribution through e-Auction has been introduced with a view to provide access to coal for such buyers who are not able to source coal through the available institutional mechanism. In the long run it is expected that e-Auction may help in creating spot as well as future market of coal in the country. The purpose of e-Auction is to provide equal opportunity to purchase coal through single window service to all intending Buyers.

Terms & Conditions With reference to para VI (4) of the e-Auction Scheme 2007 for Spot e-Auction the detailed terms and conditions are given below : 1. Eligibility:

Any Indian Buyer (viz. individual, partnership firm, companies etc.) can participate in e-Auction for procurement of coal. 2. Registration: Before participation in the e-Auction, a prospective Buyer shall be required to get itself / himself registered with the Service Provider appointed by the CIL / Coal Companies for the purpose, by submitting an application in the prescribed format available on the Website of the respective Service Providers. 3. Notification: Coal companies would draw program for conducting at least two eAuctions per month and notify the same, minimum 7(seven) days in advance, through display on the Companys notice board and putting the same on the Coal Companys websites for wide publicity. The program will be intimated to the Service providers accordingly for hoisting the same on their websites also. 4. Bidding Process The registered Bidders shall be required to record their acceptance after login, of the Terms & Conditions of the e-Auction before participation in the company. Before participating in eAuction, bidders are to satisfy themselves with the quality of coal being offered from a source. 5.Post e-Auction process: Each successful bidder will be intimated through e-mail / SMS by the Service Provider on the same date after the closure of e-Auction. However, it will be the responsibility of the bidder to personally see and download the result displayed on website, on the same date after close of e-Auction. 6. Terms of payment: The coal value to be deposited in advance by the successful bidders shall be computed and deposited after making provision for the EMD amount for the successful bid quantity already transferred by the service provider to the subsidiary company. In other words, the coal value to be deposited and EMD amount together, shall be equivalent to the 100 % coal value. 7. Procedure of Coal Delivery

By Road: Coal company shall issue Sale / Delivery Orders to the successful bidders in terms of Clause 6.4 after realisation of payment. The Buyer has to submit the option before the issue of the Sale / Delivery Order for movement of the coal within state or outside state and the Sale / Delivery Order would indicate the same accordingly. However, the challan issued by the Coal Company shall indicate the destination. By Rail: The seniority of buyers in case of rail borne supplies shall be guided by the seniority list as provided by the service provider based on buyers bids. 8. Refund of EMD for Unsuccessful bidders:In case of unsuccessful bidders, EMD shall be refunded by the Service Provider after the auction is over, on the bidders request. However, if no such request is received the Service Provider will retain the EMD for participation in e-Auction in future. 9. Refund of Coal value: The balance coal value of the unlifted quantity after the expiry of the validity period for supply of coal and completion of required commercial formalities shall be refunded subject to forfeiture of EMD if required, in terms of the forfeiture clause as above.

CHAPTER III METHODOLOGY

3.1 RESEARCH METHODOLOGY The research methodology is a frame work that is used to collect data from various people, to know the opinion of various people regarding the study that is being done .This frame work makes it easy for the collection of data from an inference can be drawn. RESEARCH DESIGN: The research design that is being used is descriptive method. Advantages of descriptive method: The research is being conducted with a group of people from which the interpretations can be easily made. The research is done with few number of people

The data that we use is both PRIMARY and SECONDARY data. PRIMARY DATA: The data that we have calculated is a primary data (i.e.) the data is collected from the public people by conducting questionnaire. SECONDARY DATA: The data is called secondary data that is not collected from the public that is being acquired from the journals, magazines and various articles from net. SAMPLING In this project, I have taken 40 peoples for making the survey report on the basis on questionnaires.

CHI-SQUARE TEST
The objective of the chi-square test is to determine whether real of significant differences exist among the various groups. Chi-square rest involves comparison of expected frequency (Ei) with observed frequency (Oi). To determine whether the difference between the two in greater than which might occur by chance. There are 5 steps in using chi-square test. 1. The difference between each observed frequency and each expected frequency is computed. 2. The differences are squared. 3. Each squared difference is divided by its respective expected frequency. 4. Their quotient is added together to obtain the computed chi-square. 5. This computed value is then compared to tabulated chi-square. If the computed X2 values are greater then the tabulate X2 values at the predetermined level of significance and degree of freedom, the hypothesis rejected. On the other hand if calculated X2 value is less the tabulated values, the hypothesis is accepted. The formula is X2 = [(O-E) 2] / E Where, X2 = Chi-square O = Observed frequency E = Expected frequency

ANOVA (F-Test)
The analysis of variance (ANOVA or F-test) is used in such problem where a research wants to test for the significances of the difference between more than two as sample mean. This is one of the most powerful statistical techniques. The ANOVA is used in every type of experiment design concentrating both natural and social sciences.

One Way Classifications

In one way classifications, data are collected according to one criterion. The null hypothesis takes the form that is; arithmetic means of the population from which the K samples are randomly drawn are equal to one another.

Following steps are involved in the analysis of variance

i) Compute the variance between the samples: Further steps involved to calculate variance between samples are calculated the mean of each samples. a) Calculated the grand average mean. b) Take the difference between mean of the various samples and grand averages. c) Square these deviations and obtain the total which will give sum square between the samples & d) Divide the total obtained in steps (d) by degree of freedom. The degrees of freedom will be one less than the no. of samples. ii) Calculated the variance with in the samples: The step involved here is a) Calculated the mean of each sample. b) Take the deviations of various items in a sample from the mean values of the respective samples. c) Square these deviations and obtain the total which gives the sum of squares within the samples and

d) Divided the total obtained in the step (c) by degrees of freedom. The degrees of freedom are obtained by deducting from the total no. of items the no. of samples. Degree of freedom = n k Where, k-is the no. of samples n-is the total no. of all observations

iii) Calculated the F ratio as follows Variance between the samples F = ------------------------------------Variance within the samples Compare the calculated F values of freedom of at certain level of significance (Generally 0.05). If the calculated values of F exceeds the tabular values. Then the different in samples mean is significant that is due to simple sampling fluctuation or samples do not come from the same population on the other hand, it the calculated values F is less than the table values, the difference is not significant and hence, could have arisen due to fluctuation of simple sampling.

3.2 DATA ANALYSIS AND INTERPRETATION COAL RESERVES (Up to 600 meter) TABLE 3.1 Medium coking coal Non-coking coal Total Reserve 14.023 BT 19.539 BT 33.562 BT

CHART 3.1

Total Area of Operation

2600 Sq. Km

Interpretation:a) Non coking coal is more available in according to given data. a) The percentage availability of coking coal is 42%.

b) The percentage availability of non-coking coal is 58%.

PRICING OF COAL:Basic Price of Run of Mine Non-Long-Flame Non-Coking Coal (In Rupees/ Tonne) TABLE 3.2 Field/ Co. A B C D E F G

ECL(for 8 units vide Annex II) 1490 ECL/ Mugma(for 16 units vide Annex IV) ECL/ Rajmahal BCCL CCL NCL SECL MCL

1340

1120

900

680

530

370

1710 1440 1470 1350 1190 1160

1520 1310 1330 1220 1110 1030

1300 1090 1110 1000 950 860

1080 900 910 840 800 720

860 890 720 720 670 660 560

640 760 570 570 530 520 440

420 610 410 410 390 390 320

CHART 3.2

Pricingofcoal
1800 1600 1400 1200 1000 800 600 400 200 0 A B C D E F G

Interpretation:1. From the given data we find that the price of grade A is the most costly and that of G grade is the least. 2. Price is depending upon the quality of coal. 3. Grade A coals quality is the best among them. Thats why its price is more than other grade of coal.

Table: 3.3 SATISFIED WITH THE SERVICE OF THE COMPANY No. of Respondents Yes No Cannot Say Others are better TOTAL Analysis: 22 8 2 8 40 Percentage 55% 20% 5% 20% 100%

55% of f the intervi iewees hav ve the opin nion that th hey are satisfied with h the servic ce of the com mpany, 20% % says no, 5% cannot t say and 20% 2 says th hat others are a better.
CHART T: 3.3

No.ofRespond dents
No.ofResponden nts 22 8 2 Cannot Say 8

Yes

No

Othersare better

Table: 3.4 3 FACIN NG ANY PROBLEM P M WITH COMPAN C NY DISTR RIBUTION N SYSTEM M No. of f Respond dents Yes No Alwa ays Neve er TOT TAL Analysi is: 10% of f interview wees have the opini ion that th hey are facing fa prob blem with h the compan ny distribut tion system m, 75% say ys no, 2.5% % says alw ways and 12.5% says that they are e never facing any problem. Chart: 3.4 4 30 1 5 40 Perce entage 10% % 75% % 2.5% % 12.5% % 100%

No.ofRespondents
No.ofRespondents 30

4 1 Yes No Always

Never

Table: 3.5 OTHERS COMPANIS ARE BETTER THAN CCL No. of Respondents Yes No TOTAL 8 32 40 Percentage 20% 80% 100 %

Analysis: 20% of interviewees have the opinion that others company are better than CCL and others 80% says that the others company are not better than the company. Chart: 3.5

No.ofRespondents

Yes No

Table: 3.6 DELIV VERY TIM ME OF CO OAL BY CCL C No. of Responde ents Very fast Satisf factory Slow w TOTA AL 8 29 3 40

Percen ntage 20% % 72.5 5% 7.5% % 100 %

Analysi is: 20% of f interviewees have the t opinion n that the processing p g time of th he compan ny is st, 72.5% says s satisf factory and d others 7.5% say that the proc cessing tim me is very fas slow. Chart: 3.6

No.ofRespond R dents
No.of o Respondents 2 29

8 3

Veryfast

Satisfac ctory

Slow

Table: 3.7 CURRE ENT POSITION OF F CCL No. of Responde ents Percen ntage 70% % 20% % 10% % 100 0%

More e than suf fficient Suffi ficient Less than suff ficient
TOTA AL

28 8 4 40

is: Analysi 70% of f interviewees have the t opinion n that the current c position of th he compan ny is han suffici ient, 20% says suff ficient and d others 10 0% say th hat the cur rrent more th position n of the com mpany is le ess than su ufficient. Chart: 3.7

No o.ofRe esponden nts

No.ofRe espondents 28

8 4

Morethan n sufficient

Sufficient t

Le essthan suf fficient

Table: 3.8 WANT T ANY CH HANGES IN I THE COMPANY C Y SERVIC CE No. of Responde ents Yes No TOTA AL 6 34 40 Percen ntage 15% % 85% % 100 0%

is: Analysi 15% of f the interv viewees ha ave the opi inion that they want t change in n the comp pany service and 85% says s that th hey dont want w chang ge in the co ompany ser rvice. Chart:3 3.8

No.ofRespon ndents
35 30 25 20 15 10 5 0 Yes N No No.ofRespond dents

Table 3.9 ANALYSIS TO FIND OUT THE RELATIONSHIP BETWEEN THE BTST AND DISSATISFACTION LEVEL OF THE SERVICES PROVIDED BY
Observed frequency (O) 28 20 32 28 12 10 8 12 Expected frequency (E) 28.8 21.6 28.8 28.8 11.2 8.4 11.2 11.2 (O-E) 2 0.64 2.56 10.24 0.64 0.64 2.56 10.24 0.64 (O-E) 2/E 2 0.022 0.118 0.335 0.022 0.057 0.304 0.914 0.057

2 (O-E) = -----------------E = 1.849 Calculated value of X 2 = 1.849 Degree of freedom = (C-1) (r-1) = (4-1) (2-1) =3 The value 3 at 5% of significance the level for 5 degree of freedom = 7.815 INFERENCE: Since the calculated value of the X 2 is less than the table value, we accept the null hypothesis and concluded that there is no significant relation between BTST and the dissatisfaction level of the service rendered by CCL.

CHAPTER IV FINDING, SUGGESTION & RECOMMENDATION

4.1 FINDING a) Consumers are classified into two types-core and non-core. b) Requirements of defence sector and railways will be met in full at notified price. c) 75% of the quantity as per the normative requirement of the consumers actual supply of coal through FSA by CIL. The balance 25% of coal requirement of the units will be sourced by them through e-auction/import of coal etc. d) Distribution of coal is done by railway and roadway from CCL. e) Non coking coal is more available in according to given data. f) The percentage availability of coking coal is 42%.

g) The percentage availability of non-coking coal is 58%. h) Grade A coals quality is the best among them. Thats why its price is more than other grade of coal. i) The letter of Assurance (LOA) to be issued now pursuant to the new policy will have a validity of 24 months for consumers/applicants of power utilities. j) FSAs would be inter-alia, based on Take or Pay principle. k) Supply of coal to steal plant would be based on FSA. The price of Coal would be on the basis of coal import parity prising with suitable adjustment for quality. The system is already vogue.

4.2 SUGGESTION AND RECOMMENDATION 1. Now days, CCL is facing problem to fulfill the demand of its customer. So it should pay attention towards high level of coal production. 2. It should pay attention towards sales promotion also. 3. CCL should pay attention towards the security of people who live near coal fields, because sometimes they have to face a lot of problems.

CHAPTER V CONCLUSION, BIBLIOGRAPHY, APPENDIX

5.1 CONCLUSION 9 Coal is one of the primary sources of energy, accounting for about 67% of the total energy consumption in the country. 9 India has some of the largest reserves of coal in the world. 9 Indian coal has high ash content and low calorific value. However, with the present rate of around 0.8 million tons average daily coal extraction in the country, the reserves are likely to last over 100 years. 9 The energy derived from coal in India is about twice that of energy derived from oil, as against the world, where energy derived from coal is about 30% lower than energy derived from oil.

QUESTIONNAIRE NAME DATE OF BIRTH. CITY. ADDRESS TEL NO. EMAIL ID

1. ARE YOU AWARE OF CCL? a) Yes b) No

2. WHAT IS YOUR VIEW ABOUT CCL? a) EXCELLENT c) Bad b) GOOD d) No comment

3. ARE YOU FACING ANY PROBLEM WITH COMPANY DISTRIBUTION SYSTEM? a) Yes c) Always b) No d) Never

4. DO YOU THINK THAT OTHERS COMPANIES ARE BETTER THAN CCL? a) Yes b) No

5. DELIVERY TIME OF COAL BY CCL? a) Very fast c) Slow 6. WHAT DO YOU THINK ABOUT CURRENT POSITION OF CCL? a) More than sufficient c) Less than sufficient

b) Satisfactory

b) Sufficient

7.DO YOU WANT ANY CHANGES IN THE COMPANY SERVICE? a) Yes b) No

BIBLIOGRAPHY BOOKS 1. Philip Kotler, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha (2008), Marketing Management, 13th edition, Pearson education, New Delhi 2. K. Kundan (2009), Marketing Aptitude Test, BSC Publication, Delhi WEBSITE REFERED 1. www.google.co.in 2. www.wikipedia.com 3. www.coalindia.nic.in