India - Dudhichua Coal Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 13938 PROJECT COMPLETION REPORT INDIA DUDHICHIUA COAL PROJECT (LOAN 2393-IN) FEBRUARY 1, 1995 Energy Operations Division India Country department South Asia Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS (As of May 30, 1994) Currency units = Rupees (Rs) One Rupee = US$ 0.316 (approx.) One US Dollar = Rs 31.6 MEASURES AND EQUIVALENTS 1 Million cubic meters of gas = 37 million cubic feet of gas = 6,500 barrels of oil - 890 mt of oil = 1,940 mt of (Indian) coal 1 British thermal unit (Btu) = 0.252 kilokalories 1 m3 cubic meter ABBREVIATIONS AND ACRONYMS GOI - Government of India CCL - Central Coalfields Ltd. CIL - Coal India Ltd. NCL - Northern Coalfields Ltd. NHPC - National Hydro Power Corporation NTPC - National Thermal Power Corporation PAF - Project-affected family PAP - Project-affected person FISCAL YEAR April 1 - March 31  FOR OFFICIAL USE ONLY THE WORLD BANK Washington, DC. 20433 U.S.A. Office of Director-General Operations Evaluation February 1, 1995 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on India - Dudhichua Coal Proiect (Loan 2393-IN) Attached is the Project Completion Report on India - Dudhichua Coal Project (Loan 2393-IN), prepared by the South Asia Regional Office, with Part II prepared by the Borrower. The project, which closed in March 1993, consisted of six subcomponents: (i) construction of facilities for the production of 5 million tons of coal per year; (ii) construction of a coal handling plant commensurate with the output; (iii) construction of on-site supporting infrastructure including a township for 1600 residential units; (iv) preparation of an operational manual for the project; (v) implementation of a training program for the labor force; and (vi) preparation of three studies to improve the operational efficiency of Coal India Ltd (India's holding company in the nationalized coal industry) and the Dudhichua mine. The PCR finds that despite the delay in the completion of the walking dragline and the coal handling plant, the Northern Coalfields Ltd. (NCL - the company implementing and operating the project) started coal production on time in FY 1987/88 and has managed consistently to achieve production levels far in excess of those anticipated at appraisal until FY 1992/93. Ever since, the mine has been producing around its capacity and NCL has now embarked on doubling the capacity to 10 million tons a year. This remarkable achievement owes much to the institutional development efforts including the services of an experienced open cast mining consultancy company which advised the management of NCL in all aspects of the mine management, especially in the early years of project implementation. A significant feature of this project was its cost underrun. A combination of domestic purchases under ICB, a general slack in the worldwide equipment manufacturing and the elimination of import duties and taxes resulted in total project cost declining from an estimated US$362.6 million at appraisal to US$236.7 million. Another important feature of this project was that by the time the project was appraised, the land (3160 hectares) for the first development phase had been acquired. NCL was successful in resettling some 63 families to the nearby areas. It also provided employment for 225 persons out of the estimated 378 project affected people. Environmental management by NCL includes back-filling of mined-out areas, and extensive revegetation and reforestation. Based on the above findings, the project outcome is rated as satisfactory and its institutional development impact as substantial. Given the existence of a ready market for steam coal, the low cost of production and the proven capability of the management, sustainability is rated as likely. The PCR is of satisfactory quality. An audit is planned. Attachment This document has a restricted distribution and may be used by recipients only in the performance of their ofricial duties. Its contents may not otherwise be disclosed without World Bank authorization.   FOR OFFICIAL USE ONLY PROJECT COMPLETION REPORT INDIA DUDHICHUA COAL PROJECT LOAN 2393-IN TABLE OF CONTENTS PAGE NO. PREFACE ..................................................... i EVALUATION SUMMARY .......................................... iii Objectives ...... ........................................... iii Implementation experience ........................................ iii Results .................................................... iii Sustainability . ............................................... iv Findings and lessons learned ....................................... iv PART I: PROJECT REVIEW FROM BANK PERSPECTIVE ..................... 1 Project Identity .............................................. 1 Background ............................................... 1 Fulfillment of Project Objectives ..................................... 2 Project design and organization ...................................... 3 Project cost and financing . ........................................ 4 Project Implementation . .......................................... 5 Project Results .............................................. 6 Project Impact .............................................. 7 Project Sustainability ............................................ 7 Bank Performance ............................................. 7 Borrower Performance ........................................... 8 Project Relationships ............................................ 8 Consulting Services ............................................. 8 Project Documentation ........................................... 9 PART II: PROJECT REVIEW FROM BORROWER'S PERSPECTIVE .... .......... 10 Preface ............................................... 10 Comments on Part I ............................................. 10 Cancellation of Part of the Loan . .................................. 10 Environmental issues . ........................................ 10 Resettlement and rehabilitation of project affected people ................... 10 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Comments on Part III of the Report . ........ ..... .... ................ 11 Bank Performance ............ ... .. .. ... .. .. .. ... .. .. .. ... . . 11 Borrower's Performance . . . . . . . . . . . . . . . .. . .. . . . . . . .. . . . .. . . . .. . 11 Lessons Learned ........... .. .. .. .. .. ... . .. ... .. . .. .. .. .. . . 11 PART III: STATISTICAL INFORMATION ............................... 12 A. Related Bank loans .......................................... 12 B. Project Timetable ........................................... 13 C. Disbursements ............................................. 14 D. Project Implementation ........................................ 15 E. Project costs and financing ...................................... 16 F. Project Results ............................................. 18 1. Direct Benefits ........................................... 18 2. Economic impact ......................................... 19 3. Financial impact .......................................... 21 4. Environmental impact ...................................... 22 5. Social impact ........................................... 24 6. Studies ................................................ 24 G. Status of Covenants .......................................... 26 H. Use of Bank resources ........................................ 28 ANNEX 1.1 COAL INDIA LIMITED: INCOME STATEMENTS ................. 30 ANNEX 2.1 NORTHERN COALFIELDS LIMITED: INCOME STATEMENTS ... ..... 33  - i - PROJECT COMPLETION REPORT INDIA DUDHICHUA COAL PROJECT LOAN 2393-IN PREFACE This is the Project Completion Report (PCR) for the Dudhichua Coal Project in India, for which Loan 2393-IN in the amount of US$151 million was approved on March 20, 1984. The loan was closed on December 31, 1992, as scheduled. US$42.0 million of this loan have been canceled due to lower-than-expected cost of imported equipment. The remainder of the loan was fully disbursed. The last disbursement was in July 1993. The PCR was jointly prepared by the Energy Division of the India Country Department (Preface, Evaluation Summary, Part I and Part III) and the Borrower (Part II). Preparation of this PCR was started during the Bank's final supervision mission of the project in January 1994, and is based, inter alia, on the Staff Appraisal Report; the Loan and Project Agreements; supervision reports; correspondence between the Bank and the Borrower; and internal Bank memoranda.   - iii - PROJECT COMPLETION REPORT INDIA DUDHICHUA COAL PROJECT PROJECT LOAN 2393-IN EVALUATION SUMMARY Objectives The objectives of the Dudhichua Coal Project were to assist in the development of the typically large-scale opencast coal mines of the Singrauli coalfield in order to accelerate thermal coal production for the power stations in that and other areas and to advise and train the personnel of Northern Coalfields Ltd. (NCL) and Coal India Ltd. (CIL) in state-of-the-art opencast and mine-planning techniques. Implementation experience The project was implemented well by both NCL and CIL. From the beginning, achievement of overburden removal and coal production has been consistently ahead of program until, at closing, they were both ahead of program by over a year and the Ministry of coal has requested that the 10-million-tons-per-year, second phase of the Dudhichua mine (not Bank financed, although GOI is requesting financing at the time of this report) should be accelerated in order to compensate for shortfalls of coal production in other Singrauli mines. On the down- side, NCL was let down by completion of two of the most important procurement items, i.e. the walking dragline and the coal handling plant, both of which were completed over two years late. NCL's performance is all the more creditable in that it was achieved in spite of these delays. Results The project was highly successful. It exceeded the production targets set at appraisal as well as the economic and financial rates or returns. Extensive technical assistance in mine design and operating practices made it possible for Northern Coalfields, which implemented the project, to establish Dudhichua as a model mine. While the project was plagued by many of the procurement problems cornmonly encountered by projects in the Indian public sector, excellent management at the subsidiary and mine level made it possible to find solutions reasonably quickly. The mine has been designed to 'backfill' spoil material into 'mined-out' areas in the mine, avoiding the build-up of large, unsightly overburden dumps. Extensive revegetation and reforestation as well as excellent haul roads keep dust generation to a minimum. While environmental management at the Dudhichua mine is quite a ways away from the practices  - iv - applied at opencast mining operations in other countries, it represents a major step towards environmentally sustainable mining operations in India. Mining operations affected the livelihood of 63 families (or about 378 people). With the exception of two families, all have been resettled. (A change in the layout of the mine, made it unnecessary to resettle these two families). Most of the adult family member have found employment with NCL. A detailed review of the resettlement and rehabilitation of theses families as well as any landless families that might not have been compensated will be carried out during the coming year under a proposed Coal Sector Rehabilitation Loan. Sustainability The project is sustainable. With its expansion to 10 million tons per year coal production, it is set to be the most successful of all CIL's four hundred-plus mines. NCL faces no known constraints in acquiring the remaining land its would need to continue mining operations for another 35-40 years. Findings and lessons learned World-wide and, in India's particular geological circumstances, opencast coal mines are much less expensive to operate than underground mines; thus their profit potential is generally much higher. The move towards higher an higher percentages of coal being produced by opencast means is an obvious and generally wise one in India. On the other hand, opencast mining disturbs much greater areas of land than underground mining and the presence of sometimes-large numbers of people, living and working on the surface of an area containing coal, presents problems of compensation and resettlement which Coal India are finding great difficulty in overcoming. In Dudhichua the surface population was small and there were no major problems. Other opencast coal mining projects, including two financed by the Bank, have suffered major delays due to the difficulties of agreeing acceptable resettlement and compensation arrangements. In addition, insufficient attention is given to the restoration of land distributed by mining in India. Sometimes this is understandable, since most of the mines have very long operational 'lives' and restoration is regarded as something that can be done 'when it is necessary', years hence. Dudhichua, for instance, has a life of over seventy years at a production rate of 5 million tons per year. Even so, much more could be done to improve the appearance and functionality of the restored land on an ongoing basis at little extra cost than the present practice of planting tree-seedlings to disguise the damage done. The Bank should ensure, in any future similar projects, that planning of restoration is given more attention at the mine-planning stage.  - 1 - PART I PROTECT REVIEW FROM BANK PERSPECTIVE Project Identity Project Name: Dudhichua Coal Project Loan No. 2393-IN RVP Unit: South Asia Region Country: India Sector: Energy Subsector: Coal Background Coal is India's largest source of commercial energy. Almost 70% of annual coal output is used to generate electric power; the remaining 30% are consumed by a variety of industrial enterprises. ORGANIZATION OF THE COAL INDUSTRY. Coal production is largely in the hands of seven coal companies, which operate in different geographical regions of the country. An eighth company is engaged in mine planing and design . Organizationally, these coal companies are subsidiaries of Coal India Ltd. (CIL), which was established after nationalization of the industry in the early 1970s as a holding company with the explicit purpose to manage the coal industry. CIL is fully owned by the central government. THE GOVERNMENT'S STRATEGY. After the steep increase of international oil prices in the 1970, the Indian Government established a working group to review India's energy policy. One of the main recommendations of this Working Group on Energy Policy was substitution of oil products with energy based on indigenous coal. This led to a massive shift of resources into the power sector. To facilitate this, the central government established the National Thermal Power Corporation (NTPC) and the National Hydro Power Corporation (NHPC); in parallel, the Government decided to nationalize the coal industry. This provided the coal industry with access to public resources which enabled it to finance the investments required to meet the rapidly growing demand for coal. Immediately after nationalization of the coal mining industry in 1972 the Government's aim was to increase coal production as quickly as technically feasible. Little regard was given to efficiency and coal quality. By the early 1980s recognized the cost this strategy imposed on the economy and took steps to improve the efficiency of mining operations and to raise coal quality. The Government then had the following aims for the industry:  - 2 - (a) the development of new, large-scale, highly mechanized mines to allow rapid expansion of production with due regard to safety and environmental protection and using increasingly efficient technologies and equipment; (b) the rehabilitation and mechanization of certain of mines producing prime coking coal in order to reduce the need for imports; (c) improvement in the availability and cost of coal to distant consumers by optimizing mine/consumer linkages, improving transportation systems and giving priority to the exploration and development of mines in southern India; and (d) the introduction of measures to improve the quality and consistency of coal supplies to consumers, reduce transportation requirements and improve the efficiency of thermal power units, steel plants, industrial boilers, etc. THE BANK'S ASSISTANCE STRATEGY. The Bank's involvement in the Indian coal sector began with a loan for the Chasnulla mine (Coal Production Project TO 287) in 1961. A major accident at this mine, killing 175 miners, led to a hiatus of almost two decades in the Bank's support for this sector. In the late 1970s the Bank decided to explore again the possibility of extending its support to the coal sector. A mission to review the coal sector visited India in 1980, and its report, India Coal Sector Report (Report 3601-IN), was issued in September 1982. The report endorsed Coal India's strategy to rely increasingly on highly mechanized large opencast mining operations to meet the expected increase in coal demand, and to raise the efficiency of underground mines through mechanization. The Bank's renewed involvement in the sector started with the Dudhichua Coal Project, which was designed to bring modern, state-of-the-art opencast mining technology to the Indian coal industry. In addition to improving mine design and operating practices, the project provided technical assistance for a review of coal transport and distribution from mines to power stations. Within a period two years the Board approved two more projects, the Jharia Coking Coal Project, which extended these efforts to the Jharia coalfield, India's largest resource of prime coking coal, and the Coal Mining Coal Quality Improvement Project, which did the same for mining operations in the Raniganj and Korba coalfields. With these three operations, the Bank had achieved the primary aim of its assistance to the coal sector, to assist Coal India Ltd. (CIL) in raising the efficiency of its opencast and underground mining operations in major coal producing areas through mechanization, improved mine design and better mining practices; and in implementing measures to improve the quality of coal produced. Fulfillment of Project Objectives PROJECT OBJECTIVES. The mine was and is a key factor in the master plan for the development of the Singrauli coalfield. The objectives of the Dudhichua Coal Project were (a) to assist in the development of the typically large-scale opencast coal mines of the field in order to accelerate thermal coal production for the power stations in that and other areas; and  - 3 - (b) to advise and train NCL and CIL personnel in state-of-the-art opencast mining and mine-planning techniques. The project provided for the first-stage of development of the Dudhichua mine designed to produce 5 million tons of thermal (steam) coal per year to supply local NTPC power stations and other stations in western India. The mine has a stripping ratio of 3.3 cubic meters of overburden to each ton of raw coal, a maximum mining depth of 235 meters and a total reserve of 345 million tons. The mine was designed to be expanded to produce 10 million tons per year in its second development stage, after completion of the Bank-financed project. Based on an annual coal production of 5 million tons the mine's reserves would be exhausted by the year 2058; if annual production was increased to 10 million tons existing reserves would permit production to the year 2028. PROJECT COMPONENTS. The project consisted of the following components: (a) Construction and start-up facilities at the Dudhichua mine for production of about 5 million tons of coal per year. (b) Construction of a coal handling plant to handle the coal output from the project. (c) Construction of on-site supporting infrastructure, such as maintenance facilities, warehouses, rail siding, power supply substation and a township consisting of about 1,600 residential units together with community welfare facilities. (d) Preparation of three studies, (i) regarding the size and efficiency of dump trucks to be utilized at the Dudhichua mine, (ii) regarding operational practices in Coal India's opencast mines; and (iii) regarding the process for improving the process for formulating and controlling the operational budgetary system of Coal India. (e) Preparation of an implementation manual for the project. (f) Implementation of a training program for the labor force of the Dudhichua coal mine aimed at the operation and maintenance of opencast mines. Project design and organization The project was designed to increase the thermal coal production from the Singrauli coalfield, one of India's largest and best reserves of thermal coal. Development of this field is comparatively recent in the over-100-year-old Indian coal mining industry. The field's geology makes it eminently suitable for exploitation by opencast methods, inherently a much less expensive method of producing coal than the more traditional method of underground mining. While the field had been operated by opencast methods for some years, the project was intended to bring international state-of-the-art (Western) technology and techniques into the Indian mining industry. Productivity was to be improved by the better use of large electric walking draglines and tracked shovels, together with larger mining trucks and ancillary  - 4 - equipment. Crushing, handling and loading facilities were to be provided to prepare the coal produced to acceptable parameters and to optimize unit-train dispatch. To accelerate the use of up-to-date mining methods and improve all aspects of mine operation and equipment usage and maintenance, experienced technical assistance was to be provided. At the time of appraisal the beneficiary was Central Coalfields Limited (CCL), an operating subsidiary of CIL. A short time later mining operations in the Singrauli coalfield were split off from CCL and a new company, Northem Coalfields Limited was formed to operate the mines in that field. While NCL were responsible for implementation of the project, CIL were responsible for the procurement of all the mobile equipment. Procurement of the fixed installation, i.e. the coal crushing, handling and loading plant, became the responsibility of NCL. Project cost and financing PROJECT COST. At the time of appraisal the project was estimated to cost US$362.6 million. Based on actual expenditures, converted at the prevailing exchange rates, cost of the project turned out to be US$236.7 million, about 35% below the original estimate. The cost of imported equipment (and spares) tumed out be only slightly more than one third of the estimate at appraisal. This is not an uncommon pattem, which has two major causes. One, the domestic preference clause gives Indian suppliers, in particular those with foreign collaboration agreements, a decisive edge over foreign competitors. In addition, high import duties on spares, discouraged Coal India's subsidiaries to use of imported mining equipment, where roughly equivalent domestically manufactured equipment was available. (The significant reduction of import duties on spares, announced by the Government in February 1994, will eliminate this disincentive to imports of mining equipment). As a result, a larger- than-expected share of contracts procured under ICB goes to Indian suppliers. Two, experience has shown that procurement under ICB results in about a 30% reduction of project costs. The increase in the share of foreign cost of the coal handling plant reflects the fact that this contract was awarded to a foreign company. The cost overrun is largely due to delays in the completion of the civil works portion of this tumkey contract by Indian subcontractors and an accident during the construction of the coal handling plant. A significant departure from the appraisal estimates represents also the almost five- fold increase in expenditures for technical assistance. While it was the original intent to transfer state-of-the art technology through appropriate equipment, it became soon apparent that this would need to be paired with extensive assistance in mine design and operating practices. The heavy dose of international assistance in these areas and the receptivity of NCL staff to the advice made available to them turned out to be key factors in the overall success of this project. PROJECT FINANCING. World Bank provided a loan of US$151 million Bank financing was provided for the procurement of mobile mining equipment, a 5 million ton per year coal- crushing, handling and loading plant and a technical consultancy to advise and train the mine  management and personnel in modem opencast coal mining techniques, mine planning and equipment usage and maintenance. Project Implementation LOAN EFFECTIVENESS AND PROJECT START-UP. The loan was approved on March 20, 1984 and signed on May 25, 1984. It became effective on August 30, 1984. IMPLEMENTATION. The management personnel for Dudhichua were supplemented by a team of mining engineers and technical experts from the Canadian mining consultancy company of Met-Chem, a contract arrangement financed by the Bank. Both the reports from NCL and the actual results indicate clearly that the arrangement provided highly effective assistance in the operation of the mine. The Bank's mining engineers, who were involved in supervising this project and who were able to visit nearby mines in the same coalfield consistently noted and reported the improvement in working practices and efficiency which resulted from direct, hands-on advice from the consultants. On completion of their contract the consultants supplied seventy copies of a comprehensive (seven volume) opencast mining implementation manual to CIL for the use of their engineers in the planning and operation of future projects in this and other CIL subsidiary mining companies. From the beginning of the project, overburden removal and coal production have been consistently ahead of program. This is particularly remarkable, in light of the fact that two of the most important elements of the mine development, the overburden excavating dragline and the 5-million-ton-per-year coal handling plant became available only two years after their contractual completion dates. In addition, spontaneous ignition and combustion of in-situ coal in the exposed working faces and loose coal in external stockpiles has become a persistent and seemingly intractable problem in the mine, a factor which was not known to exist and, therefore, not anticipated in the planning stage. In spite of these obstacles, production of overburden and coal are both over a year ahead of program. This, in turn, has encouraged NCL to accelerate the implementation of the second phase of the development of the Dudhichua mine, which would bring coal production to 10 million tons per year, since it would allow the company to compensate for production shortfalls from other Singrauli mines. LAND ACQUISITION AND RESETTLEMENT. By the time the project was appraised the land (3160 ha) for the first phase of the development of the Dudhichua mine had been acquired. The area was sparsely populated, and according to Coal India's records, acquisition of 3160 ha affected 63 families. Assuming that an household consists on average of six persons, a total of 378 people were affected by the project. All of these families owned land, houses or both on the land required for the mine. No socio-economic survey had been prepared had been prepared at the time of appraisal, and there is no record of the number of landless people that could have been affected by the project. However, NCL is currently carrying out such a survey to assess the remedial rehabilitation needs of all people affected by the project. Considering that wages in the coal industry are about 8-10 times the prevailing minimum wage, most project-affected people opt for employment with the coal companies. Few  - 6 - project-affected people opt for compensation based on 'land for land'. Until recently, NCL offered employment whenever it acquired three or more hectares of land from an individual, in addition to the market price of the land, shifting allowance and other benefits. As far as the Dudhichua Coal Project is concerned, NCL informed the Bank that it has resettled 42 families (or 252 people) during 1988/89, and another 21 families (or 126 people) in the following year to Jawahar Nagar on the shore of the nearby Rihand reservoir. A change in the layout of the mine made it unnecessary to move the remaining two families (or 12 people). Thus, all landed project-affected people have been resettled. NCL has employed 225 out of the 378 project-affected people. While a detailed breakdown of the project-affected population is not available, it can be reasonably concluded that most male adults that had to be resettled received employment with NCL. Considering the significant difference between farm in comes and the incomes obtained in the mining industry, most of the project-affected population would have experienced a considerable improvement in their standard of living. PROCUREMENT. By prior agreement with the Bank, procurement was carried out by a special cell created for the project within Coal India Limited's headquarters offices in Calcutta and not by the beneficiary, NCL. Mobile mining equipment and the coal handling plant were procured by ICB under Bank guidelines. Such problems as were encountered in the procurement of goods in the project (and in other CIL Bank-financed projects) were caused primarily by shortcomings in the CIL Notice of Invitation to Tender (NIT) and differences between that and the Bank's recommended Sample Bidding Document. In addition, recurring problems were caused by inappropriate and insufficiently precise equipment specifications. Coal India also has been reluctant to impose penalties for non-observance of contract conditions when this would involve state-owned suppliers. Combined with the 15% preference allowed to domestic manufacturers, during the evaluation of bids, this situation has, at times, resulted in contract awards to companies which have responded with delayed (and even incomplete) supply and inferior quality goods being supplied without effective penalties being applied to discourage future similar occurrences. In all other respects, however, procurement was carried out competently and in accordance with Bank guidelines. In the project it was found that the prices for some of the mobile mining equipment (notably the large, 85 ton capacity mining trucks) which had been assumed in the appraisal were far in excess of those obtained in practice. It is believed that the prior (and still continuing) CIL practice of negotiating prices for equipment after initial bidding (in procurement other than that which is Bank-financed) results in artificially high prices being bid in the first instance, since bidders are always assured of a second chance to negotiate their prices downwards and obtain an order. Bidders were quick to realize the Bank's ICB rules and accordingly priced their bids at more realistic and competitive levels. Project Results The project was well-designed for its purpose. It exceeded its objectives, both in terms of physical achievements as well as in terms of transferring state-of-the-art (opencast) mine design and mining practices. It also exceeded its projected economic and financial rates of return.  - 7 - The mine is currently more than a year ahead of the original mining program, both in terms of overburden removal and coal production. Project Impact The successes of the Dudhichua Coal Mine Project are to a large extent due to the introduction of modern mining practices with the assistance of consultants financed out of the Bank loan. While the benefits of modern working practices have clearly proven their advantage in the project, opencast mines in other subsidiaries have been reluctant to adopt them. Project Sustainability Based on NCL's current projections the Dudhichua mine will be operated for another 34 years, until 2028, with an annual output of 10 million tons. (CIL has requested support from the Bank under the proposed Coal Sector Rehabilitation Loan to finance the increase of annual production from 5-10 million tons). Assuming that mine management continues to follow the good working practices that have been introduced under this project (and there is no reason to doubt that), the project is expected to continue to yield high financial and economic rates of retums. (See financial and economic cost/benefit streams in Part III). Critical for the continued success of the project will be NCL's ability to resettle and rehabilitate project-affected people. Under the proposed Coal Sector Rehabilitation Project, which currently under preparation, the resettlement and compensation issues will be revisited; if NCL's resettlement and compensation actions are found to be deficient in one way or another, a remedial action plan will be prepared. Bank Performance Throughout the implementation of the Dudhichua Coal Project, the Bank contributed significantly to the successful outcome of the project. In addition to providing meaningful and well-received advice on the technical aspects of the project, the Bank assisted CIL and NCL in dealing with the dilatory performance of two suppliers concerning the walking dragline and the coal handling plant; these were the only serious implementation problems that were encountered. Completion of the respective contracts was more than two years behind schedule and burdened NCL with large and unnecessary costs. CIL were allowed some flexibility in the procurement of equipment and were able, within the loan, to acquire a few more units than were originally scheduled due to purchase prices being much lower than originally anticipated. In addition, in view of problems of acquisition of spare-parts they were allowed to purchase what CIL term 'float-assemblies' i.e., complete replacement diesel engines, transmission assemblies, etc., to ensure availability of mining equipment. This, in large part, enabled NCL to attain their advanced production position in Dudhichua.  The main lessons to be learned from the implementation of the Dudhichua Coal Project inJlude: * the need for standard bidding documents, in order to minimize the possibility of disputes and misprocurement (CIL has agreed to use standard bidding documents under the forthcoming Coal Sector Rehabilitation Project); * the desirability of providing CIL with frequent and timely advice on procurement issues, in order to avoid lengthy procurement-related implementation delays (CIL has agreed to use the services of an expatriate company specializing in procurement for the preparation of the technical specifications of bid documents and the evaluation of bids under the forthcoming Coal Sector Rehabilitation Project); and * the need to consider in the estimation of project cost that procurement under ICB will reduce the cost of items procured under this method by about 30%. Borrower Perfornance CIL, in procurement matters, and NCL, in implementation, performed excellently and the 13ank should have no material complaints about the manner in which this project was managed. They were generally responsive to recommendations from the Bank, and made every effort to comply with covenants. Had the companies not been let down by the two above- mentioned suppliers, coal production would be even further ahead than its present good position and the resultant performance would have been at least two years ahead of the program defined at appraisal. Project Relationships The relationships between CIL/NCL and the Bank have been consistently good throughout the project. The frank and open discussions which took place during supervision missions resulted in satisfactory solutions in spite of differences in viewpoints which occurred from time to time; they helped Bank staff to understand better and appreciate the environment and constraints under which CIL's and NCL's management are operating; and they provided an opportunitv to convey to CIL and NCL the rationale for the positions taken by the Bank. Consulting Services The concept of having and experienced opencast mining consultancy company (Met- C(hem of Canada) advising the NCL management team in all aspects of the mine management during the early years of implementation proved to be invaluable. It instilled good working practices into the mine managers and supervisors; the effects are clearly observable at Dudhichua and noticeably absent on other mines. It was later found necessary to employ inspection consultants to ensure the integrity of components for the dragline manufactured by Heavy Engineering Corporation of Ranchi. The concept of using expert inspectors in these and  - 9 - similar supply circumstances has been extended to other supply contracts by CIL and their subsidiaries with marked success. Project Documentation The Bank's documentation was constantly used and proved invaluable to the project. NCL provided periodic status reports and accounts which, with normal Bank supervision reports, were sufficient to monitor the progress of the project and provide most of the basis for this Project Completion Report. In the event, the equipment procurement listing in the SAR was modified as circumstances proved such modification to be necessary. Experience in the writing of this PCR has clearly shown the desirability of preparing data for the PCR from the start of and during the project implementation. The SAR itself should contain details of the content of the required regular reports to the Bank, which should include all the data considered by Bank staff to be necessary for the timely production of the completion report.  - 10- PART II PROTECT REVIEW FROM BORROWER'S PERSPECTIVE Preface During the early 1980s Coal India Limited (CIL) approached the World Bank to assist in the development of Dudhichua Coal Project, a large scale opencast coal mine, of Singrauli Coalfields, in order to accelerate thermal coal production for the power stations. In 1986-87 the Singrauli coalfields of Central Coalfields Limited (CCL), where the project is situated, was separated from CCL and a new subsidiary coal company, the Northern Coalfields Limited (NCL) was formed. It has been a unique experience of CIL in establishing a big coal project in a virgin area with the assistance of the World Bank. Comments on Part I The analysis made by the Bank under Part I is quite comprehensive and has covered all important aspects. Cancellation of Part of the Loan In course of implementation of the project, it was found that estimated cost of the project was on the higher side, as because the prices available under ICB were much lower than the estimated cost. Therefore the provision made under "physical contingencies" and "price escalation: in the estimates were not used. The saving was estimated by CIL during 1989. It was to the tune of US$42 million which was surrendered. Environmental issues The environmental issues have been comprehensively dealt with in Part III of the Report. We agree generally with the observation made by the Bank. The environmental issues are given due importance and CIL as well as all the subsidiaries are committed to minimize the adverse impacts on the environment by initiating action right from the planning stage and by regular monitoring. In this project, the adverse effect on the quality of the water, air, noise, etc. is well controlled. The program of afforestation is carried out very effectively and proper green belts have been established around the colony and worked out areas. Proper organization for environment management has been established. Resettlement and rehabilitation of project affected people Bank has covered in a comprehensive manner all the aspects of this issue. We agree, in general, with the observation of the Bank on this issue. CIL has now formulated  - it - resettlement and rehabilitation policy for implementation in all projects. Proper organizational set up has been established for implementing the policy in consultation with the project affected people, Government and Non-Government Organization (NGO). Comments on Part III of the Report This part of the report is in order. Bank Performance Highly professional Bank Supervision Mission has made the project completion a success. Despite facing some odds because of their apt handling the project could be completed a year ahead of schedule. The assistance of World Bank to CIL in developing of large scale highly mechanized opencast coal mines and improving the efficiency through better training of the personnel in the state-of-the-art technology and mines planning techniques along with better utilization of equipment is highly appreciated. Borrower's Performance With the generated effort from all concerned, the project was implemented in a professional manner. The project was implemented one year ahead of schedule and is performing excellently. The lesson learnt from this project is being introduced in other projects of CIL. Lessons Learned In this project, the very first on e of this kind for CIL, valuable experience has been gained in planning and implementing a large scale highly mechanized opencast mine. The Bank's procedure of procurement was for the first time introduced in this project and valuable experience was gained even though there was some occasional set back in implementation. Various studies were also conducted in the field of coal transportation and distribution, coal production/consumer linkages, size and efficiency of dump trucks, operational practices in opencast mines, improving the process of formulating and controlling the operational budgetary system. Valuable experience was gained in managing large projects. The project has now gained the confidence to such and extent that it is now proposing to double its capacity  - 12 - PART III STATISTICAL INFORMATION A. Related Bank loans Loan Number Year of Purpose of Project Status Comments Project Title Approval Jharia Coking 1985 To continue the transfer of Completed See Project Coal Project, technology for highly December 31, Completion Loan 2498-IN mechanized opencast mines 1992 Report for this and to extend it to project underground mines. The project focused on mines in the Jharia coalfield (belonging to Bharat Coking Coal Ltd.) Coal Mining and 1987 To continue the transfer of Under Coal Quality technology for highly implementation Improvement mechanized opencast mines. Project, Loan The project focused on a 2796-IN mine in the Korba coalfield (belonging to Southeastem Coalfields Ltd.) and a mine in the Raniganj coalfield belonging to (Eastem Coalfields Ltd.) NTPC Power 1993 The project comprises: Under The project is Generation a) Generation of Capacity implementation. located in the Project, Loan Addition; b) Private sector Singrauli 3632-IN..colidan component (oint venture coalfield, and operations); and c) uses coal from Environmental the Dudhichua strengthening and coal nine resettlement and rehabilitation  - 13 - B. Project Timetable Date Planned Date Revised Date Actual Identification September 1982 October 1982 Preparation October 1982 Appraisal January 1983 March 1983 Loan Negotiations January 1984 Board Approval March 20, 1984 Loan Signing May 25, 1984 Loan Effectiveness August 31, 1984 Loan Closing Date March 1992 March 31, 1991 First Extension of the Closing Date March 31, 1992 Second Extension of the Closing Date March 31, 1993 Completion July 31, 1993 COMMENTS. Almost two years elapsed between the time the project had been identified and the date of effectiveness. While this may somewhat exceed the time required for the preparation of similar projects, it has to be kept in mind that this was the Bank's first project with a new borrower, Coal India Ltd. TIhe project's closing date was extended twice: all the procurement for the project had been completed except for the implementation of the most costly item, the coal handling plant. which suffered serious delays. The main contractor supplied the equipment for the plant (mainly from his country) and employed Indian subcontractors for the civil works. The first sub- contractor failed to mobilize the necessary mechanical equipment resulting in lengthy delays. The contractor fired the first sub-contractor who applied to the Courts for an injunction to prevent the contractor employing a replacement sub-contractor. The injunction was eventually denied but the process resulted in further delays in appointing a second sub-contractor. A first extension of the closing date was requested and granted. In June 1991, seven of the contractor's employees were killed when an unusually heavy rainstorm caused an inundation of the work area, resulting in a collapse of the main concrete tunnel and flooding of the underground coal receiving pit where the men were working. As a result of the accident NCL decided to redesign the tunnel before starting repairs. In order that the contractor could finish the work, a second extension was requested and granted.  - 14 - C Disbursements Cumulative Estimated and Actual Disbursements US$ Million 18 196 1298 1988 199 1990 1991 1922 1993 Appraisal Estimate 4.20 45.20 62.70 100.70 117.70 127.00 151.00 Actual 0.38 9.57 41.62 43.66 53.17 79.93 89.37 92.04 100.20 Actual as % of 9.00 21.00 66.00 43.00 45.00 63.00 59.00 61.00 67.00 Estimate Date of Final Disbursement: August 13, 1993 COMMENTS. Of the Bank loan of US$151 million 69% were actually disbursed. The main reason for this shortfall in disbursements were sharply lower prices of intemationally procured equipment and facilities compared to estimates made at appraisal. This result was discussed with procurement staff at Coal India Ltd. who indicated that in their opinion the lower actual prices were largely the result of the use of 'intemational competitive bidding' procedures. When it became evident that the actual cost of equipment purchases were well below the appraisal estimates, the Government requested cancellation of US$42.0 million. This reduced the loan amount to US$109 million. By the time the loan closed, NCL had spent US$100.2 million, and retumed US$8.8 million, which had remained in the Special Account, to the Bank. U.u million l50 : ~~~Appra wt estimnate xLoan 100 50 E _ ' 9f1 0 1984185 1985/86 1986/87 19s87/88 1988/89 1989/90 1990/91 1991/92 1992/93 1993/94  - 15 - Follow-on Project Name: Jharia Coking Coal Project Loan No.: 2498-IN Loan amount: US$248 million equivalent Date of Board approval: March 7, 1985 D. Project Implementation Projections at Appraisal Actual Achievement Year ~Overburden Coal Overburden Coal Removal Production Removal Production (million m3) (million tons) (million m3) (million tons) 1983/84 0.60 0.00 1.28 0.00 1984/85 1.80 0.00 3.29 0.00 1985/86 2.60 0.00 2.78 0.00 1986/87 4.00 0.00 5.05 0.00 1987/88 6.00 0.50 8.15 0.61 1988/89 6.00 0.80 9.69 1.60 1989/90 6.00 1.30 11.22 2.51 1990/91 9.60 2.80 12.67 4.00 1991/92 13.40 3.30 12.00 4.75 1992/93 13.40 3.40 9.90 4.40 1993/94 13.60 5.00 12.10 4.00 COMMENTS: From the beginning of the project, overburden removal and coal production have been consistently ahead of program. This is particularly remarkable, in light of the fact that two of the most important elements of the mine development, the overburden excavating dragline and the 5-million-ton-per-year coal handling plant became available only two years after their contractual completion dates. In addition, spontaneous ignition and combustion of in- situ coal in the exposed working faces and loose coal in external stockpiles has become a persistent and seemingly intractable problem in the mine, a factor which was not known to exist and, therefore, not anticipated in the planning stage. In spite of these obstacles, production of overburden and coal are both over a year ahead of program. This, in turn, has encouraged NCL to accelerate the implementation of the second phase of the development of the Dudhichua mine, which would bring coal production to 10 million tons per year, since it would allow the company to compensate for production shortfalls from other Singrauli mines.  - 16- E. Project costs and financing Project Cost US million Estimated Cost Actual Cost Local Foreign Tota Local ForeignI Tta Equipment and spares 34.8 80.2 115.0 117.8 26.5 114.2 Coal handling plant 23.9 7.3 31.2 21.9 14.0 35.9 Land and civil works 31.1 1.6 32.7 29.1 0.0 29.1 Vehicles, furniture, ett. 0.0 0.0 0.0 1.4 0.0 1.4 Engineering and training 2.4 0.0 2.4 0.0 0.0 0.0 Preoperating expenditure 27.3 3.1 30.4 7.1 0.0 7.1 Technical assistance 0.3 0.7 1.0 1.7 2.9 4.6 Duties and taxes 46.1 0.0 46.1 0.0 0.0 0.0 Base cost 165.7 92.9 258.7 178.9 43.4 222.3 Physical contingencies 12.7 5.2 17.9 0.0 0.0 0.0 Price escalation 47.5 28.2 75.7 0.0 0.0 0.0 Installed cost 225.9 126.4 352.3 178.9 43.4 222.3 Working capital 9.2 1.0 10.3 14.4 0.0 14.4 Project cost 235.2 127.4 362.6 193.3 43.4 236.7 Interest during construction 9.6 0.7 10.4 0.0 0.0 0.0 Front-end fee 0.0 0.4 0.4 0.0 0.3 0.3 Total financing required 244.8 128.5 373.3 193.3 43.6 236.9 Notes: 'Actual cost' include duties, taxes and price escalation under the respective categories of expenditures. 'Interest during construction' is included in 'pre-operating expenditures'. COMMENTS. At the time of appraisal the project was estimated to cost US$362.6 million . Based on actual expenditures, converted at the prevailing exchange rates, cost of the project turned out to be US$236.7 million, about 35% below the original estimate.  - 17 - The cost of imported equipment (and spares) turned out be only slightly more than one third of the estimate at appraisal. This is not an uncommon pattern, which has two major causes. One, the domestic preference clause gives Indian suppliers, in particular those with foreign collaboration agreements, a decisive edge over foreign competitors. In addition, high import duties on spares, discouraged Coal India's subsidiaries to use of imported mining equipment, where roughly equivalent domestically manufactured equipment was available. (The significant reduction of import duties on spares, announced by the Government in February 1994, will eliminate this disincentive to imports of mining equipment). As a result, a larger- than-expected share of contracts procured under ICB goes to Indian suppliers. Two, experience has shown that procurement under ICB results in about a 30% reduction of project costs. The increase in the share of foreign cost of the coal handling plant reflects the fact that this contract was awarded to a foreign company. The cost overrun is largely due to delays in the completion of the civil works portion of this turnkey contract by Indian subcontractors and an accident during the construction of the coal handling plant. A significant departure from the appraisal estimates represents also the almost five- fold increase in expenditures for technical assistance. While it was the original intent to transfer state-of-the art technology through appropriate equipment, it became soon apparent that this would need to be paired with extensive assistance in mine design and operating practices. The heavy dose of international assistance in these areas and the receptivity of NCL staff to the advice made available to them turned out to be key factors in the overall success of this project. Project Financing Plan US$ million Original Revised Actual A. Equity 186.7 165.7 118.4 Government of India 141.9 N.A. N.A. CIL cash generation 44.8 N.A. N.A. B. Long-term debt 186.6 165.7 118.4 IBRD 151.0 109.0 100.2 Government of India 35.6 56.7 18.3 Total financing 373.3 331.4 236.9 Note: The revised projection was made after Coal India had decided to cancel US$42.0 million of the Bank loan.  - 18 - COMMENTS. External financing was used to finance mainly procurement of equipment and technical assistance in the form of consultancy services and training abroad. Allocation of the Bank Loan US$ million CategZoryv Original Revised Actual Amoun Percent Amount Percent Amount Percent Coal handling plant 29.0 19.2 26.8 24.6 21.0 21.0 Equipment 112.4 74.4 81.4 74.7 76.2 76.0 Technical assistance 0.9 0.6 0.4 0.4 2.6 2.6 Front-end fee 0.4 0.3 0.4 0.4 0.4 0.4 Unallocated 8.3 5.5 Total 151.0 100.0 109.0 100.0 100.2 100.0 Note: The revised projection was made after Coal India had decided to cancel US$42.0 million of the Bank loan. F. Project Results 1. Direct Benefits The Singrauli region, in which the Dudhichua coal project is located has emerged as one of India's major suppliers of energy. Large and easily accessible coal reserves as well as the availability of water (Rihand reservoir) provide the basis for coal-based thermal power generation. While a significant portion of the power generated in the region is used by local industry, most of it is exported to feed the power grids of Uttar Pradesh and Madhya Pradesh. The direct beneficiaries of the development of the Dudhichua mine are the power stations in the Singrauli region. While most coal mines are 'linked' to specific power stations, NCL uses the Singrauli mine predominantly as a 'swing producer' to meet production shortfalls of other mines. While this was not originally intended, the location of the mine near major power stations as well as its relatively high efficiency (and thus low production costs) made it suitable for this role. As indicated above, the relatively high efficiency of the Dudhichua mine is largely due to the 'heavy dose' of technical assistance for mine design and operating practices. The recommendations were distributed to Coal India's other coal producing subsidiaries, who benefited indirectly from the technical assistance provided to the Dudichua coal mine.  - 19- 2. Economic impact Operating Costs Rs per ton Projection Actuals 1982/83 terms Current terms 90/91 93/94 98/99 9091 93/94 Coal production (million tons) 2.5 5.0 10.0 4.0 4.0 Overburden Removal (mill. m3) 6.0 13.0 36.0 12.7 12.1 Wages 16.5 8.2 6.6 12.6 26.0 Consumables 35.5 28.9 26.8 43.9 105.6 Power 9.0 5.1 3.8 7.4 18.8 Miscellaneous 11.5 7.4 6.8 37.0 38.8 Overheads 8.3 4.1 3.4 5.4 7.2 Operating costs 80.8 53.7 47.4 106.4 196.4 Memo item: Operating cost (US$ per ton) 6.0 6.2 COMMENT. Since many cost components are fixed, operating cost (per ton of coal) are greatly affected by fluctuations in mine production. At the time of appraisal, the operating cost per ton of coal were estimated at US$8.3 for 1990/91 and US$5.5 for 1993/94. Actual cost for theses years are US$6.0 and US$6.2 respectively.  - 20 - Economic Cost /Benefit Streams Rs million 1983/84 terms Fiscal Year Production Capital pmerating Working Net sales Net flows cost cost capital revenues 1983/84 205.9 -205.9 1984/85 79.0 -79.0 1985/86 93.8 -93.8 1986/87 309.5 -309.5 1987/88 0.6 89.6 -89.6 1988/89 1.6 125.4 -125.4 1989/90 2.5 408.7 88.5 29.5 1661.3 1134.5 1990/91 4.0 145.2 172.8 28.1 2647.5 2301.4 1991/92 4.8 167.7 315.6 47.6 3143.9 2612.9 1992/93 4.4 256.6 274.0 -13.9 2879.1 2362.4 1993/94 4.0 282.3 257.6 -5.5 2614.4 2080.0 1994/95 4.3 -106.9 306.8 16.4 2846.0 2629.7 1995/96 5.0 76.8 274.1 -10.9 3309.4 2969.3 1996/97 5.0 76.8 274.1 3309.4 2958.4 1997/98 5.0 89.3 274.1 3309.4 2945.9 1998/99 5.0 113.8 274.1 3309.4 2921.4 1999/00 5.0 4.0 274.1 3309.4 3031.2 2000/01 5.0 18.0 274.1 3309.4 3017.2 2001/02 5.0 45.9 274.1 3183.7 2863.7 2002/03 5.0 89.4 274.1 3183.7 2820.1 2003/04 5.0 33.7 274.1 3183.7 2875.9 2004/05 5.0 32.2 274.1 3183.7 2877.4 2005/06 5.0 29.4 274.1 3183.7 2880.1 2006/07 5.0 28.6 274.1 3183.7 2881.0 2007/08 5.0 125.1 274.1 3183.7 2784.5 2008/09 5.0 35.5 274.1 3183.7 2874.1 2009/10 5.0 37.5 274.1 3183.7 2872.1 2010/11 5.0 53.6 274.1 3183.7 2856.0 2011/12 5.0 35.7 274.1 3183.7 2873.8 2012/13 5.0 -193.2 274.1 -91.4 3183.7 3194.1 Economic rate of return: 54.73% Notes: The financial cost streams (see the following table) have been converted into economic cost streams using the following conversion factors: Indigenous capital goods: 0.8; indigenous capital goods with import content: 0.84; revenue expenses: 0.72; Indonesian coal was used to compute the economic border price for coal.  - 21 - 3. Financial impact Financial Cost /Benefit Streams Rs million 1983/84 terms Fiscal Year Production Capital Operating Working Net sales Net flows cost cost capital revenues 1983/84 245.1 -245.1 1984/85 94.0 -94.0 1985/86 111.6 -111.6 1986/87 368.5 -368.5 1987/88 0.6 106.7 -106.7 1988/89 1.6 149.3 -149.3 1989/90 2.5 486.6 122.9 41.0 525.7 -124.8 1990/91 4.0 172.9 240.0 39.0 792.3 340.0 1991/92 4.8 199.7 438.4 66.1 860.9 156.7 1992/93 4.4 305.4 380.6 -19.3 900.4 233.6 1993/94 4.0 336.0 357.8 -7.6 853.7 167.4 1994/95 4.3 -133.6 426.1 22.8 754.8 439.5 1995/96 5.0 96.0 380.7 -15.1 877.4 415.8 1996/97 5.0 96.0 380.7 0.0 877.4 400.6 1997/98 5.0 111.7 380.7 877.4 385.0 1998/99 5.0 142.3 380.7 877.4 354.4 1999/00 5.0 5.0 380.7 877.4 491.6 2000/01 5.0 22.5 380.7 877.4 474.2 2001/02 5.0 57.4 380.7 694.2 256.2 2002/03 5.0 111.8 380.7 694.2 201.7 2003/04 5.0 42.1 380.7 694.2 271.4 2004/05 5.0 40.2 380.7 694.2 273.3 2005/06 5.0 36.8 380.7 694.2 276.7 2006/07 5.0 35.7 380.7 694.2 277.8 2007/08 5.0 156.4 380.7 694.2 157.2 2008/09 5.0 44.3 380.7 694.2 269.2 2009/10 5.0 46.9 380.7 694.2 266.7 2010/11 5.0 67.0 380.7 694.2 246.5 2011/12 5.0 44.7 380.7 694.2 268.8 2012/13 5.0 -241.5 380.7 -126.9 694.2 681.9 Financial rate of return: 15.12% COMMENT. The following table compares the economic and financial rates of return estimated at the time of appraisal with the most recent revised estimates. Both, current estimates of economic and financial rates of return exceed the original estimates made at the time of appraisal. The main factors behind these improvements in the rates of return are lower- than-expected equipment costs and slightly higher coal prices; operating cost turned out to be roughly in line with the original estimates.  - 22 - Comparison of economic and financial rates of return Projections at appraisal Current projections 5 mill. ton 10 mill, ton 5 mill. ton 10 mill. ton output output output output Economic rate of return 13.6 16.3 54.7 54.5 Financial rate of return 7.1 9.8 15.1 13.4 The following table shows a comparison of projected and actual trends of Indian coal prices: Average coal prices in India, 1984/85 to 1989/90 Rs per ton Indian fiscal year Projections aL Actual 1984/85 183.0 188.2 1985/86 197.2 190.9 1986/87 211.7 202.8 1987/88 227.1 215.0 1988/89 243.7 252.3 1989/90 261.4 273.7 Notes: a/ coal price projections at the time of appraisal. 4. Environmental impact The following table provides an overview of the environmental issues raised at the time of appraisal and an environmental review of the mine carried out by a Bank mission in January 1994. ENVIRONMENTAL SETTING. The mine site is located on a low plateau bordered on its south side by a steep escarpment, whose height is about sixty meters. Colony areas and mine infrastructure are situated at the foot of the escarpment. Before the mine was constructed the land was largely arid forest land and unoccupied scrubland used mainly for rough grazing. BASELINE MONITORING. In 1990 NCL carried out a regional monitoring program as basis against which future trends in environmental quality could be evaluated. As part of this program, NCL set up[ 36 air quality stations and 24 noise stations. Measurements were taken during May and June, just before the onset of the monsoon, a time when air quality is most likely at its worst. Air and noise monitoring was to have been followed by sampling of water quality. However, there is no evidence that this part of the program was ever carried out.  - 23 - Environmental Observations at a12p1raisal Recent findings issue Hydrology With regard to surface water runoff Water from the pit sump, along with and water from the mine, solid retention dams surface runoff from the coal handling qualitv will be built and relocated as plant, is discharged into a nearby nallah management operations progress. without any further settling, The nallah is severely contaminated with coal fines. Effects of the deep opencast mine on local groundwater are unknown. Air qualitv Dust is the only air pollution Dust control in the coal handling plant is and noise hazard, and will be controlled by the most advanced of any coal project of management adequate measures. Haul roads will any project the Bank is involved in. All be periodically watered by special pit roads are regularly watered. Main trucks; appropriate dust suppression haul roads are metalled and permanent and/or dust extraction equipment service roads are paved. Greenbelts have will be installed. been established around the colony and along most service roads. Suspended particulate levels generally comply with air quality objectives outside the active mining area. Land Only small quantities of top soil are Impressive tree plantations have been reclamation present. Soil conservation will be established on the tops of external done whenever feasible. overburden dumps. Some excellent Erosion control an prevention recontouring and planting has been m ,turfing and revegetation undertaken on some internal dumps. Will be undertaken on waste dumps External dump slopes are long and steep, willbe ndetakn onwase dmps and cannot be reclaimed without and exposed slopes. This will also reduce surface water runoff. substantial slope reduction and terracing. Reclamation efforts thus far have been focused on replanting with trees. Monitoring Air quality will be monitored on a NCL has indicated that environmental weekly basis. monitoring programs have been implemented. Up to now only data on air quality during the winter, summer and monsoon seasons at the guest house and the Madhauli village have been collected. Effects of the opencast mine on local groundwater are unknown, although since the mine is on top of the escarpment there are unlikely to be any adverse effects  - 24 - 5. Social impact LAND ACQUISITION AND PAPS. By the time the project was appraised the land (3160ha) for the first phase of the development of the Dudhichua mine had been acquired. The area was sparsely populated, and according to Coal India's records, acquisition of 3160 ha affected 63 families. Assuming that an household consists on average of six persons, a total of 378 people were affected by the project. No socio-economic survey had been prepared had been prepared at the time of appraisal, and there is no record of the number of landless people that could have been affected by the project. However, NCL is currently carrying out such a survey to assess the rehabilitation needs of all people affected by the project. COMPENSATION. Considering that wages in the coal industry are about 8-10 times the prevailing minimum wage, most project-affected people opt for employment with the coal companies. Few project-affected people opt for compensation based on 'land for land'. Until recently, NCL offered employment whenever it acquired three or more hectares of land from an individual, in addition to the market price of the land, shifting allowance and other benefits. As far as the Dudhichua Coal Project is concerned, 42 families were resettled(or 252 people) during 1988/89, and another 21 families (or 126 people) in the following year to Jawahar Nagar on the shore of the nearby Rihand reservoir. A change in the layout of the mine made it unnecessary to move the remaining two families (or 12 people). Thus, all landed project-affected people have been resettled. NCL has employed 225 out of the 378 project- affected people. While a detailed breakdown of the project-affected population is not available, it can be reasonably concluded that most male adults that had to be resettled received employment with NCL. Considering the significant difference between farm in comes and the incomes obtained in the mining industry, most of the project-affected population would have experienced a considerable improvement in their standard of living. 6. Studies As part of the project the following studies had been prepared:  - 25 - Studv Purpose as Defined at Status Impact of study Appraisal Coal Transportation Overall study of how the Completed Coal handling arrangements and Distribution railway system can best be at Dudhichua Project were utilized for carrying coal set up based on the study. The present transportation and distribution system is adequate to meet coal production of the project. Coal Production/ Set up cross checks to Completed Long term linkages are Consumer Linkages ensure that the totality of finalized on the basis of this linkages satisfies optimal study to the extent possible situation: establish least- cost solution for the entire system Study on Size and Determine most efficient Completed The results of the study Efficiency of Dump size of dump trucks for the have been used to further Trucks to be Utilized mine procurement action for the for Dudhichua Mine mine Operational Practices Assess the implementation Completed A 'Project Implementation in Openpit Mines of measures to improve the Manual' and 'Operation Coal India efficiency of CIL's major Management Structure' has openpit mines been made for CIL's projects. A manual was prepared by CIL in respect to Dudhichua mine Study for Improving CIL was to review the Completed The operational budgetary the Process of systems and procedures for system has been set up to Formulating and formulating and control the operational Controlling the controlling the budget at all levels for CIL, Operational operational budget at all subsidiary companies, area Budgetary System of levels of the group and level and unit level. This Coal India recommend a plan of action provides effective to implement mechanism at every cost improvements centers for controlling the cost including the profits at different levels of the organization  - 26 - G. Status of Covenants Agreement Section Description of Covenants Status LA 2.02(b)Ame GOI to maintain a Special Account in dollars In full compliance nded LA 3.01(b) GOI relending to CIL under terms acceptable to In full compliance Bank (not less than 12.75 % per annum; repayment 15 years including 5 years grace period) LA 3.02(a)(i) Borrower shall initiate a coal transport and Study has been completed distribution study by April 30, 1984 LA 3.02(a)(ii) Borrower shall complete producer/consumer Study has been completed linkage study by December 31, 1985 LA 3.02(a)(iii) Implement recommendations arising from studies Implementation being carried out LA 3.03 Borrower shall provide adequate and timely In full compliance railway facilities for coal transportation LA 3.04 Borrower shall from time to time review linkages GOI constituted a Standing between all coalfields and consumers Linkage Commnittee (SLC) comprising representatives of Ministry of Coal, Ministry of Power, Central Electricity Authority (CEA), Indian Railways, CIL, etc., to review the linkages. SLC meets biannually and short term SLC meets once in three months LA 3.05 Borrower shall promptly grant permission to In full compliance import goods covered by contract and make foreign exchange available LA 3.06 Audit: Special Account (due within 6 months of In full compliance An-eded Fiscal Year end LA 4.02 Borrower shall periodically review coal prices to In full compliance. However, ensure viability of CIL and progressive there have been at times mobilization of additional resources to cover significant delays in these increasing proportion of capital expenditures reviews of coal prices. PA 2.03 CCL to employ consultants satisfactory to the Bank In full compliance PA 2.08 CIL and CCL will ensure compliance with In full compliance environment and safety standards  - 27 - Agreement Section Description of Covenants Status PA 2.10 CCL will furnish a schedule of project housing and In full compliance services facilities and implement PA 2.11 CCL shall on January 1st each year furnish the There is a Central Excavation Bank a report on training activities Training Institute (CETI) at Singrauli (NCL, erstwhile part of CCL). Number of persons trained in this Institute were incorporated in every quarterly report sent to World Bank PA 2.14 (a) CCL will complete a study of truck sizing Study has been completed PA 2.14(b) CCL will retain consultants to review and improve In full compliance operational practices and implement their findings and recommendations PA 2.15 CCL will produce a project implementation manual In full compliance PA 2.16 CIL will complete a study to review systems for Study has been completed formulation and control of operational budgets PA 2.16(iii) CIL will take appropriate actions to implement Implementation being carried recommendations arising from above study (PA, out Section 2.16) PA 3.03 CIL and CCL shall take out insurance against risks In full compliance in such amounts as will be consistent with appropriate practice PA 4.02 Audit: CIL and CCL due within 9 months of the In full compliance fiscal year PA 4.03 CIL will ensure at all times a minimum debt service In full compliance coverage of 1.3, a debt equity ratio not exceeding 1.5 and a current ratio of not less than 1.2  - 28 - H. Use of Bank resources Stage of Month Number Dav Specialization Perforianc Type of Problems Pro_jectCycle /Year f in Represented e Rating Field status/b Through appraisal Appraisal through Board approval Board approval through effectiveness Supervision 1 Oct 85 3 11 Economist 2 Weak detailed planing Engineer and scheduling; Consultant equipment availability and utilization Supervision 2 Feb 86 3 19 Economist 2 CIL's poor financial Engineer performance Financial Analyst Supervision 3 Aug 86 2 10 Engineers (2) 2 Supervision 4 Dec 86 2 12 Engineers (2) 2 Supervision 5 May 87 4 13 Economist 2 Engineer Procurement Financial Analyst Supervision 6 Oct 87 5 21 Economnist 2 Engineers (2) Financial Analyst Consultant Supervision 7 Jun 88 4 22 Economist 2 Engineers (2) Financial Analyst Supervision 8 Jan 89 1 14 Engineer 2  - 29 - Stage of Month Number Days Secialization Perfonrmanc Type of Problems Project Cycl /Year in Represented e Rating Eiad status/b Persons Supervision 9 Aug 89 5 15 Economist 1 Engineers (2) Financial Analyst Consultant Supervision 10 Feb 90 5 30 Economnist 1 Engineers (2) Financial Analyst Project Officer Supervision 11 Aug90 3 22 Econornist I Engineers (2) Supervision 12 Feb 91 3 14 Economnist Engineers (2) Supervision 13 Oct 91 4 16 Econornist 1 Engineers (2) Operations Analyst Supervision 14 Jul 92 4 18 Economnist 1 Engineers (2) Operations Analyst Supervision 15 Mar 93 3 16 Engineers (2) 1 Operations Analyst COMMENTS. Overall, the scope and intensity of supervision seemed to be adequate, in particular in light of the considerable amount of technical assistance. Management at the subsidiary level and the project site were interested in the comments made by Bank supervision missions and receptive to their recommendations. The only exception seemed to be the procurement and erection of the dragline. Apart from lengthy delays, supervision mission expressed concern about the poor quality of the delivered components of this item. In the end, the Bank insisted that Coal India avail itself of the services of a quality inspector. Subsequent missions some of the parts of the dragline had been rejected by the quality inspector. NCL staff appeared to be reluctant to exercise the legal options proposed by the Bank's supervision missions, mainly because the supplier was also an Indian public sector undertaking. Nevertheless, NCL agreed to take action to exercise the legal options proposed by the Bank's supervision mission.  - 30 - Annex 1.1 COAL INDIA LIMITED: INCOME STATEMENTS COAL INDIA LIMITED INCOME STATEMENT 80/81-92193 Rs million 80/81 81/82 82/63 83/84 84/85 85/86 86/87 87/88 88 89/90 9011 91/92 92/93 Coal production (million tons) Undergroundproduction 61 63 61 61 61 60 60 59 61 60 57 57 58 Open pit production 40 46 54 60 70 74 85 100 110 119 133 147 153 Total production 101 109 115 121 131 134 145 159 171 179 190 204 211 Saleable production 94 102 110 116 126 129 139 154 165 171 184 200 207 COns (tom): ug 1 1 1 1 1 1 1 1 I 1 1 1 Oc 2 2 2 2 2 2 2 3 3 3 3 4 4 Total 1 1 1 1 1 1 1 1 1 1 1 1 1 Ems (is) 50 55 59 79 85 91 107 108 140 146 154 171 202 Revenues Averageprice(rm/ton) 121 138 156 160 188 191 203 215 252 274 268 307 363 Saies revenues 11,313 14,018 17,064 18,624 23,636 24,564 28,176 33,033 41,595 46,868 49,360 61,357 75,122 Contribution to cpra 0 0 428 -428 0 484 298 -598 -366 0 0 0 416 Total revenues 11,313 14,018 16,636 19,051 23,636 24,079 27,878 33,632 41,961 46,868 49,360 61,357 74,706 Production costs Salaries & wages 6,860 7,650 8,542 11,708 12,620 13,320 15,497 15,976 20,610 21,208 22,253 24,788 29,008 Overhead 537 589 753 940 887 1,083 1,347 1,536 1,722 2,208 2,544 2,826 3,653 Stores 1,524 2,056 2,602 3,015 3,336 3,800 4,419 4,998 5,705 6,738 7,739 9,302 11,076 Power 541 747 968 1,187 1,437 1,705 2,087 2,360 2,734 3,167 3,707 4,433 5,284 Transportation 293 404 462 452 503 511 803 1,405 1,048 1,323 1,123 1,577 2,120 Othercosts 429 681 871 1,043 1,359 2,461 2,190 2,510 3,230 2,863 3,824 4,679 5,506 Total operatng costs 10,183 12,127 14,198 18,344 20,141 22,879 26,342 28,785 35,050 37,505 41,189 47,604 56,646 Depreciation 735 991 1.344 1,716 2,070 2,500 2,935 3,489 4,014 4.429 5,364 6,274 7,264 Interest 623 805 1,110 1,324 1,733 2,158 1,501 2,921 2,600 3,402 4,467 5,331 6,841 Total production costs 11,540 13.922 16,652 21,384 23,944 27,537 30,778 35,195 41,664 45,337 51,019 59,210 70,752 Productioncost/ton(rs) 123 137 152 184 191 214 222 229 253 265 277 296 342 Other irwome -59 -43 -42 -136 -526 -629 -455 -708 -539 -762 -650 -265 -620 Cmpdiprofitbeforetax 3 4 5 12 10 16 12 14 24 24 21 21 25 Tax on cmpdi profit 1 2 3 4 5 4 6 5 5 6 Cmpdiprofitaftertax 3 4 5 10 7 16 8 10 20 18 16 17 19 Profit from s.Yard/dcc 31 44 28 26 11 18 8 -243 -233 -447 Profit before tax -284 56 -53 -2,427 -781 -4,042 -3,317 -2,247 -199 801 -2,532 1,671 2,913 Tax 0 0 5 2 3 0 4 14 38 41 5 5 6 Netincofe -284 56 -58 -2,429 -783 -4,042 -3,321 -2,260 -236 760 -2,536 1,666 2,907  -31 - COAL INDIA LIMITED BALANCE SHEETS 80/81-92/93 Rs million S0/81 81/82 fi2ThQ a1Lf~ 8 4l8t~ &51t 861S7 87/8S 8S189 89/9 90/91 21122 9 2/93 Assets: Cash & bank 773 727 1,075 2,352 1,218 1,1,87 1,417 1,424 1,617 2,299 2,917 1,463 1,866 Coal stock 2,518 2,918 3,605 4,179 5,242 4,702 5,302 5,805 8,042 8,923 10,215 14,281 16,911 Stores & spares 1,571 2,247 2,821 3,425 3,764 4,030 4,413 4,748 5,062 5,713 6,582 6,953 7,556 Sundry debtors 1,340 1,768 2,224 3,758 3,731 3,950 4,608 7,227 9,885 14,419 14,338 13,903 20,845 Others 305 519 658 789 1,250 1,386 3,501 3,828 3,750 4,328 5,664 6,478 7,017 Total cur Assets 6,507 8,179 10,383 14,502 15,205 15,255 19,241 23,032 28,356 35,682 39,716 43,078 54,195 Gross fixed assets 12,393 15,390 20,862 26,144 32,103 40,378 47,011 55,034 64,340 75,069 89,172 104,238 119,024 Less acc. Depreciation 4,213 5,328 6,992 8,724 11,275 14,087 16,612 20,199 24,259 29,005 34,806 41,247 48,539 Net fixed assets 8,179 10,062 13,870 17,419 20,828 26,292 30,399 34,835 40,081 46,064 54,366 62,991 70,486 Capital w.lP 2,455 4,115 5,114 6,720 7,866 8,341 11,796 14,437 18,242 21,338 21,245 23,731 27,019 Loans & advances 5,497 4,679 5,431 7,147 7,913 7,363 6,690 6,031 5,846 7,184 10,079 8,859 10,229 Total assets 22,639 27,035 34,798 45,788 51,811 57,250 68,126 78,334 92,525 110,268 125,406 138,659 161,929 Liabilities: Sundry creditors 4,004 4,594 5,152 7,998 4,324 3,670 3,816 3,631 3,094 3,449 3,637 4,246 5,089 Statutory liabilities 574 726 571 867 790 1,003 1,335 1,971 2,273 5,173 6,012 6,846 9,639 Othercurrentlia 3,200 831 1,241 1,211 5,157 6,862 11,346 11,141 16,481 16,078 19,021 21,601 28,034 S.T.Debts 418 632 830 1,767 1,340 851 2,243 2,254 2,679 4,360 4,550 5,669 9,318 Total current lia. 8,196 6,784 7,794 11,844 11,611 12,386 18,741 18,997 24,526 29,060 33,221 38,362 52,079 Ltd govt. 10,780 13,196 15,636 19,457 21,737 25,284 27,156 31,160 33,462 40,382 46,687 49,093 51,554 Cil Other liabilities 1,261 1,573 1,825 2,954 3,430 3,883 3,476 6,631 7,094 8,117 10,431 11,597 14,769 Total liabilhties 20,237 21,552 25,255 34,255 36,778 41,553 49,373 56,788 65,082 77,559 90,339 99,052 118,402 Share holders' equity: Paid in capital 9,862 12,869 16,913 21,299 25,567 30,123 35,595 41,203 47,642 52,239 57,133 60,008 60,979 Retained earnings -7,460 -7,386 -7,370 -9,765 -10,534 -14,426 -16,842 -19,657 -20,199 -19,529 -22,066 -20,401 -17,452 Total Share holders'equlty 2,402 5,483 9,542 11,534 15,033 15,697 18,753 21,546 27,443 32,709 35,067 39,607 43,527 Total liabilities 22,639 27,035 34,798 45,788 51,811 57,250 68,126 78,334 92,525 110,268 125,406 138,659 161,929  - 32 - COAL INDIA LIMITED FUND FLOW STATEMENT 80/81-92/93 Rs million 80/81 solS 82 83/f14 S41SS 85/86 86/87 D7i8S 88/S9 u9/0d 90/L9 90/91 9 Sources: Income before cpra -284 56 370 -2,856 -783 -3,558 -3,023 -2,859 -603 760 -2,536 1,666 3,323 Cpra 0 0 -428 428 0 -484 -298 598 366 0 0 0 -416 Depreciation 692 1,115 1,664 1,732 2,551 2,811 2,525 3,587 4,060 4,747 5,800 6,441 7,292 Ltd interest 623 805 1,110 1,324 1,733 2.158 1,501 2,921 2,600 3,402 4,467 5,331 6,841 Grossi CG. 1,031 1,976 2,716 628 3,501 927 705 4,248 6,423 8,909 7,731 13,438 17,040 New equity capital 1,831 3,007 4,044 4,386 4,268 4,556 5,472 5,608 6,438 4,597 4,895 2,874 971 L T.Loan 2,638 2,745 3,380 3,950 3,550 3,835 4,451 4,309 4,197 8,550 6,909 2,406 4,547 Increase in other liabilities 710 311 253 1,128 476 454 -407 3,154 464 1,023 2,314 1,166 3,172 Total sources 6,209 8,039 10,392 10,092 11,795 9,772 10,220 17,319 17,521 23,079 21,849 19,885 25,730 Applications: Investment 2,889 4,658 6,470 6,888 7,105 8,751 10,088 10,664 13,111 13,826 14,009 17,552 18,075 Debt service: Principal payment 0 888 939 313 1,086 289 2,578 305 1,895 1,630 603 0 2,086 Interest payment 21 708 956 368 1,590 2,128 3,501 365 3,993 3,997 3,422 5,095 3,461 Decrease in other lia Inc In w Capital 3,299 1,785 2,026 2,523 2,015 -1,395 -5,947 5,986 -1,478 3,627 3,815 -2,763 2,108 Total applications: 6,209 8,039 10,392 10,092 11,795 9,772 10,220 17,319 17,521 23,079 21,849 19,885 25,730 Ratios: Current ratio 0 79 1.21 1.33 1.22 1.31 1.23 1.03 1.21 1 16 1.23 1.20 1.12 1.04 Debt to equity ratio 0.82 0 71 0 62 0.63 0.59 0.62 0 59 0.59 0.55 0.55 0.57 0.55 0.54 Debt service coverage ratio 1.00 1 26 1 41 0.26 1 08 0.23 0.15 0 78 0.96 1.19 0.90 1 47 1.79  - 33 - Annex 2.1 NORTHERN COALFIELDS LIMITED: INCOME STATEMENTS NORTHERN COALFIELDS LIMITED INCOME STATEMENT 80/81-92/93 Rs million 86/87 87/88 88/89 89/0 90/91 91/92 92/93 Coal production (million tons) Underground production 0 0 0 0 0 0 0 Open pit production 14 17 20 23 28 31 31 Total production 14 17 20 23 28 31 31 Saleable production 14 16 18 22 27 31 30 Oms (ton): ug Oc 7 7 8 9 9 8 7 Total 7 7 8 9 9 8 7 Ems (rs) 94 111 134 132 150 164 193 Revenues Average price(rs/ton) 166 188 227 260 269 314 351 Sales revenues 2,245 2,929 3,986 5,746 7,204 9,611 10,534 Contribution to cpra 762 898 1,656 2,756 2,702 3,052 1,447 Total revenues 1,484 2,031 2,330 2,991 4,502 6,559 9,087 Production costs Salaries & wages 181 219 291 348 476 611 745 Overhead 32 36 41 52 146 171 193 Stores 507 698 806 1,131 1,481 1,810 2,221 Power 94 132 157 222 299 394 481 Transportation 17 42 38 109 122 291 265 Other costs 91 205 144 -19 -97 677 826 Total operating costs 922 1,331 1,477 1,842 2,427 3,954 4,730 Depreciation 327 431 499 649 997 1,239 1,339 Interest 250 302 319 479 853 1,024 1,111 Total production costs 1,499 2,064 2,295 2,970 4,276 6,216 7,180 Production cost/ton (rs) 110 132 131 134 160 203 240 Other income 0 0 0 0 0 0 0 Profit before tax -15 -32 36 21 226 342 1,907 Tax 0 0 0 30 0 0 0 Net income -15 -32 36 -9 226 342 1,907  -34 - NORTHERN COALFIELDS LIMITED BALANCE SHEETS 80/81-92/93 Rs million 86/87 87/88 88/89 89/90 90/91 91/92 92/93 Assets: Cash & bank 5 56 80 4 74 44 88 Coal stock 169 207 120 339 429 758 906 Stores & spares 582 804 991 1,244 1,529 1,495 2,126 Sundry debtors 237 694 1,194 1,774 2,210 1,586 952 Others 766 912 962 1,038 1,585 1,641 1,711 Total cur.Assets 1,759 2,672 3,346 4,399 5,826 5,523 5,782 Gross fixed assets 5,994 7,161 9,778 12,065 15,821 18,598 20,765 Less acc. Depreciation 1,671 2,237 2,983 3,863 5,035 6,355 7,746 Net fixed assets 4,324 4,924 6,796 8,202 10,786 12,243 13,019 Capital w.I.P. 2,508 3,875 4,892 6,446 5,348 5,374 5,996 Loans & advances 457 918 661 479 634 544 476 Total assets 9,047 12,390 15,695 19,525 22,594 23,684 25,272 Liabilities: Sundry creditors 514 333 454 405 466 467 522 Statutory liabilities 31 48 61 59 66 204 198 Other current lia. 329 573 677 540 855 1,126 1,821 S.T.Debts 7 201 Total current lia. 874 955 1,192 1,011 1,386 1,797 2,742 Ltd: govt. Cil 4,063 7,341 7,259 9,534 9,715 9,580 8,312 Other liabilities Total liabilities 4,936 8,295 8,450 10,546 11,101 11,377 11,054 Share holders' equity: Paid in capital 4,126 4,142 7,257 9,000 11,287 11,760 11,764 Retained earnings -15 -47 -12 -20 205 548 2,455 Total Share holders' equity 4,111 4,094 7,245 8,980 11,493 12,308 14,219 Total liabilities 9,047 12,390 15,695 19,525 22,594 23,684 25,272  - 35 - NORTHERN COALFIELDS LIMITED FUND FLOW STATEMENT 80/81-92/93 Rs million 86/87 87/88 88/89 89/90 90/91 91/92 92/93 Sources: Income before cpra 747 866 1,691 2,747 2,927 3,395 3,354 Cpra -762 -898 -1,656 -2,756 -2,702 -3,052 -1,447 Depreciation 327 566 746 880 1,172 1,320 1,391 Ltd interest 250 302 319 479 853 1,024 1,111 Gross i.C.G. 562 836 1,100 1,350 2,251 2,686 4,409 New equity capital 4,126 16 3,115 1,743 2,287 473 4 L.T.Loan 4,063 3,278 -82 2,275 180 -135 -1,268 Total sources 8,751 4,130 4,133 5,369 4,719 3,024 3,145 Applications: Investrnent 8,503 2,534 3,634 3,840 2,658 2,803 2,788 Debt service: Principal payment Interest payment Decrease in other lia. Inc. In w.Capital 248 1,596 499 1,528 2,060 221 357 Total applications: 8,751 4,130 4,133 5,369 4,719 3,024 3,145 Ratios: Current ratio 2.01 2.80 2.81 4.35 4.20 3.07 2.11