Striding with success: Mahanadi Coalfields’ Tale of tech-led transformation

The public sector in India has rapidly evolved with the adoption of cutting-edge technologies. Mahanadi Coalfields Limited is among the leading PSUs that leveraged digitalisation to transform business practices and enhance productivity, efficiency, and overall output. U.A. Kaole, Chairman and Managing Director, Mahanadi Coalfields Limited (MCL), in an exclusive interview, opened up on their latest innovations, technological advancements, strategies, and CSR initiatives.

What key initiatives or strategies have you implemented to drive growth and innovation within Mahanadi Coalfields Limited during your tenure? 

As the Chairman and Managing Director of Mahanadi Coalfields Limited (MCL), I have spearheaded several key initiatives and strategies to drive growth and innovation within the company. These efforts have focused on optimising operational efficiency, enhancing sustainability, leveraging technology, and fostering a culture of continuous improvement to emphasise efficient production, environmental stewardship, and fulfilling the energy needs of the nation. This could be achieved through advanced mining techniques by using the largest fleet of surface miners in the country which is the latest mass production technology for coal extraction. Around 97 percent of the raw coal is extracted using this technology. To further enhance our capabilities, we also use Vertical Rippers for OB extraction, Ripper Dozers for removal of thin stone bands, Electronic Detonators for seamless blasting, and more. 

MCL has commissioned First Mile Connectivity projects which are crucial to our dispatch infrastructure equipped with Rapid Loading Systems. The company has operationalised the first noncoking coal washery in the country in April 2024, which will reduce the ash content in coal.

Moreover, regarding Sustainability and Environmental Stewardship, we are committed to sustainable mining practices, including land reclamation and afforestation contributing to biodiversity and ecological balance. Some of the other measures are the creation of water bodies in the backfilled areas and the construction of Eco-Parks near the mining areas.

Another important step is technological advancements by launching digital initiatives such as the implementation of ERP, real-time health monitoring of heavy earth mining machineries, and Integrated Command Control Centre with monitoring systems to enhance the decision-making process, transparency, and operational control. Automation initiatives such as RFID-based BoomBarrier Systems, Diesel Dispensing Units, Fuel Level Monitoring systems, and CCTVs have been installed in the critical locations of mining areas.

Can you share some key operational achievements or milestones that Mahanadi Coalfields Limited has accomplished during your tenure? 

Well, our performance as a team has been commendable throughout. We have exceeded the coal production target and achieved the highest ever production of 206 MT in 2023- 24 registering a growth of 6.6 percent, surpassed overburden removal of 277 M.Cum with 12.97 percent growth, and coal off-take of over 199 MT. During the last financial year out of the total off-take, over 150 MT of coal has been despatched to the power sector.

How does Mahanadi Coalfields Limited position itself within the competitive landscape of India’s coal mining industry? 

We distinguish ourselves in the competitive Indian coal mining industry through our extensive infrastructure, modern technology adoption, commitment to sustainability and a focus on operational efficiency. We position ourselves strategically by leveraging several key strengths and initiatives, like we are the highest coal producer in the country with a production of 206 MT in FY 2023-24 contributing about 21 percent of coal production to the nation. With a low cost of production and robust existing infrastructure for evacuation of coal, we are able to dispatch over 199 MT of coal in FY 2023-24. This will further increase with upcoming First Mile Connectivity projects, the evacuation of coal through ports i.e. Rail-Sea-Rail mode to southern and western power plants of the country.

Being the subsidiary company of the Maharatna Company CIL, a PSU under the Ministry of Coal, we have good market credibility. With an abundant pit-head coal stock, and a robust evacuation infrastructure working in tandem with Indian Railways, we are always prepared to meet any challenge. I would like to point out a particular event in the year 2022 when the nation was recovering from the post-covid effect, and there was a sudden surge in the demand for coal supply. MCL played a major role in averting the crisis. We have a strong leadership team and motivated workforce that drive MCL’s growth and adaptation to market changes. Being a the Governemnt of India undertaking, we have a good coordination with the state government agencies, Ministry of Environment, Forest & Climate Change (MoEF&CC), Ministry of Railways (MoR), Port Authorities, and other departments. To capitalise on new market opportunities and drive long-term growth, we have planned to take up diversification projects like setting up of thermal power plants, solar and renewable energy based power projects, coal gasification projects, etc. These efforts collectively will enhance MCL’s ability to navigate market challenges and capitalise on opportunities, ensuring sustained growth and industry leadership.

How do you envision the future of Mahanadi Coalfields Limited under your leadership, and what are your key priorities moving forward? 

Under my leadership, I envision MCL evolving into a more efficient, diversified, and sustainable energy company. Key priorities include modernising operations, enhancing safety standards, fostering innovation, and promoting environmental responsibility. We will focus on maximising productivity while minimising environmental impact, ensuring long-term viability, and contributing positively to the community. Regarding sustainable growth and diversification, we will expand our focus beyond coal mining to include renewable energy projects such as solar and wind power. This diversification will help us meet future energy demands sustainably and reduce our carbon footprint. 

Regarding technological advancements and innovation, we are implementing advanced digital technologies, including IoT, AI, and data analytics, to optimise mining operations, improve safety and enhance decision-making process. Moreover, we implement green mining practices by adopting environment-friendly mining practices, such as land reclamation, afforestation, and sustainable water management to minimise our ecological impact.

Further, to ensure operational efficiency and productivity, we are streamlining processes to improve productivity, reduce costs, and enhance overall efficiency and increasing the use of automation and mechanised equipment to boost production efficiency and reduce human intervention in hazardous areas.

Human Resource Development is an important aspect, emphasising skill enhancement through continuous training programs for our workforce to operate advanced technologies and adapt to industry changes. We also focus on the best welfare measures to ensure a motivated, and productive workforce, including health and safety initiatives, housing projects, and recreational facilities. Further, we are strengthening our CSR initiatives to support the socio-economic development of local communities, focusing on education, healthcare, sports, and infrastructure development.

By focusing on these key priorities, I envision a future where MCL not only leads the coal mining industry but also emerges as a diversified, innovative, and environmentally responsible energy company. Our goal is to achieve sustainable growth that benefits all stakeholders, including our employees, communities, and shareholders.

Would you like to brief us on the digital transformation activities within the organisation? 

We are committed to leveraging digital technology to drive operational efficiency and sustainability. Some of the key initiatives are: 

• Working through SAP ERP mode
• e-Office is fully functional at MCL-Headquarters, areas, and projects since the 01st of July 2017 
• Application of UAV: Aerial survey of land acquired by MCL (300 sq.km) using drones has been completed. The data has been uploaded to the web portal which is being used for Haul road width and gradient analysis, pit & dump slopes analysis, vegetation cover, structure mapping, and mine planning
• Virtual Reality: We commenced VR training in December 2023. There are 18 training modules with a target of 17,000 man-training in three years. Training has commenced in Dec ’23
• Our Khanan Prahari app is fully functional in MCL for anonymous reporting of theft of coal and illegal mining activities
• R&D Project: Auto Evaluation of Tenders at MCL using AI & ML is being attempted in collaboration with IIT (ISM), Dhanbad
• Video Analytics: We are leveraging video analytics for the detection of compliance with safety gadgets, alcohol detection, and access control. The system has been installed, it is under the trial phase at Orient Mines & CWS, Ib-valley
• Real-time Health Monitoring of HEMMS (Surface Miners): The pilot project to monitor major health parameters like Engine RPM, Idling, Oil, and Coolant Temperature of 17 surface miners is underway
• Soochna Kosh: AI-based search portal for MCL’s internal documents, especially rules, regulations, notifications, etc. The portal is active with around 13,000 official documents
• Automation of Diesel Dispensing Units
• Anti-theft Fuel Level Monitoring System in HEMMs to monitor any abnormal drop in fuel levels
• Around 3000 CCTVs are being installed in all operational areas as a part of security measure
• RFID-based Boom Barriers have been installed in all the mine entry/exits 
• GPS-based Vehicle Tracking Systems are fully functional 
• ICCC is going to be made operational in MCL this FY 

Can you share any notable CSR initiatives or community engagement programs undertaken by Mahanadi Coalfields Limited? 

Our CSR initiatives and community engagement programs are integral to MCL’s operational philosophy, aiming to create a positive impact on the lives of people in the regions where it operates. Through these efforts, we not only fulfill corporate social responsibilities but also build strong, sustainable relationships with the communities, contributing to their overall development and well-being. Some of the key initiatives are: Health camps organised in remote and underserved areas, providing free medical check-ups, treatments, and medicines. These camps cover general health, eye care, and specialised services. We have invested in building and upgrading hospitals and healthcare facilities in operational areas. MCL is the first Coal company to construct a 500-bedded Medical College and Hospital in Angul district and a 100- bedded Cardiac Care Hospital with super specialty facilities in Jharsuguda. 

We have also emphasised on Education and Skill Development programs like building and renovating school buildings, classrooms, and providing smart class solutions equipment to improve the learning environment for children, constructing hostel buildings, etc. Also, we are offering scholarships and financial assistance to meritorious students from 10th and 12th standard to support their higher education. Financial aid is being provided to the UPSC aspirants who clear the prelim exams. Under CSR, we are also establishing vocational training centres to provide skill development programs, enhancing employability and creating livelihood opportunities for the local youth. Construction and maintaining roads in rural and mining areas to improve connectivity and access to essential services for local communities and implementing projects to provide clean drinking water and improved sanitation facilities, including the construction of toilets and sewage systems in villages are covered under CSR initiatives.

Under the CSR drive of MCL, we are providing training and resources to local farmers to improve agricultural practices, increase productivity, and promote sustainable farming techniques through the Utthan project and conducting large-scale tree plantation drives, developing green belts around mining areas. We also build affordable housing for underprivileged families and those displaced by mining activities, ensuring safe and secure living conditions.

What message would you like to convey to the stakeholders, employees, customers, and partners of Mahanadi Coalfields Limited through this interview? 

I would like to convey a message of gratitude, commitment, and optimism to the stakeholders, employees, customers, and partners of MCL. I am immensely proud to share the progress and vision of MCL. Our journey has been marked by remarkable achievements, driven by the dedication and hard work of our entire MCL family and the unwavering support of our valued stakeholders.

Our employees are the backbone of our organisation. Their relentless commitment to excellence, innovation, and safety has been instrumental in our success. We are committed to providing you with the best training, development opportunities, and a safe working environment. Together, we will continue to push the boundaries of what we can achieve, embracing new technologies and processes to enhance our efficiency and productivity. We are also committed to meet the needs of our customers with the highest quality of coal and energy solutions. Our commitment to sustainability ensures that we conduct our operations in an environmentally responsible manner, balancing our production goals with our duty to protectand nurture the environment. We will continue to innovate and offer sustainable energy solutions that align with your goals and expectations. We understand that our operations have a significant impact on the communities around us. Our CSR initiatives are designed to improve the quality of life, enhance education, healthcare, and infrastructure, and create sustainable livelihoods.

The support and collaboration of communities we serve, are crucial to our growth. We are focused on strategic diversification and expansion to ensure longterm sustainability and value creation. By investing in renewable energy, enhancing our technological capabilities, and exploring new markets, we aim to position MCL as a leader not just in coal mining but in the broader energy sector. Together, we can achieve new milestones and drive the energy transition forward. Together we are on the path to transform MCL into a diversified, innovative, and sustainable energy company. We are committed to maintaining the highest standards of operational excellence, environmental stewardship, and social responsibility. Our future growth will be guided by these principles, ensuring that we deliver value to all our stakeholders while contributing to a sustainable and prosperous future.