Dear Shareholders,
It gives me immense pleasure to welcome you all to the 9th Annual General meeting of the company and present you the annual report of company for the year 2023-24 including Director’s Report, and the audited accounts for the financial year ended 31st march 2024 which has already been circulated to you and with your permission, I take them as read.
Financial year 2023-24, has been a year of reckoning to visualize the development of rail corridor on ground. After achieving financial closure
on 05.05.2022, many progressive steps were taken to ascertain the take off point on the Shivpur -Kathautia route, which enabled the company to award contracts amounting to Rs 924.31 Cr and work done amounting to Rs. 496.72 Cr. Formation work approx. 13.00 km in length has been prepared in this financial year. JCRL is targeting to commission approximately 15 Kms track by Oct '2024.
Jharkhand Central Railway Limited (JCRL) is a Special Purpose Vehicle (SPV) based in Jharkhand. It plans to construct a 49.085 km new railway line from Kathautia on the Koderma-Hazaribagh line of East Central Railway (ECR), heading southwest to connect with Shivpur (ECR).
This project aims primarily to transport coal from the North Karanpura Coalfields, operated by Central Coalfields Limited, in southwest Jharkhand to current and future power plants in Bihar, Jharkhand, Uttar Pradesh, Haryana, and Punjab. Additionally, it will serve as a feeder line to the Eastern Dedicated Freight Corridor, which links Dankuni near Kolkata to North India.
Currently, rail connectivity from the North Karanpura Coalfields is via Shivpur to Tori to Barkakana to Koderma, a route totalling 263 km. The new proposed line will shorten this distance to just 100 km. By completing the Kathautia-Shivpur section, the railway distance from North Karanpura Coalfields to Bihar will be reduced by 163 km, making coal transport to power plants in Bihar and North Jharkhand more efficient and economical.
Coal has long been the backbone of India's energy infrastructure, maintaining a central role in meeting the country's energy demands and will continue to do so for the foreseeable future. With coal comprising approximately 55% of India's energy mix, it is clear that the nation’s industrial progress has been significantly fuelled by domestic coal resources.
Given the limited reserves of petroleum and natural gas, environmental restrictions on hydropower projects, and the geopolitical complexities surrounding nuclear energy, coal is expected to remain the cornerstone of India's energy landscape. This is evident from the fact that coal-based power generation constitutes around 69% of the country's total electricity output, including contributions from renewable energy sources. Beyond electricity, coal is also vital for various non-power industries, including cement, fertilizers, sponge iron, and aluminium.
To meet the increasing production targets set by Central Coalfields Limited (CCL) and ensure a stable energy supply, substantial efforts are being made to enhance logistics support and connectivity via rail and road to the coal mines. In anticipation of future challenges in coal transportation and bulk movement, projects like the Shivpur- Kathotia rail lines are being implemented. This initiative aims to establish rail links from mines to the main rail network of Indian Railways, thereby ensuring an efficient coal sector, which is essential for both electricity generation and the industrial development of sectors such as steel, cement, and fertilizers.
We are very conscious of maintaining good standards of corporate governance, deep rooted values, best practices, transparency, & integrity throughout the company JCRL is dedicated to adhering to all guidelines issued by the Department of Public Enterprises and the Government of India that are applicable to our company Our unwavering commitment to compliance ensures that we operate within the regulatory framework and fulfil our responsibilities to all our stakeholders. By embracing and practicing sound corporate governance, we strive to build trust, foster transparency, and create long-term value for our organization and its stakeholders.
Our commitment to corporate growth is inseparable from our dedication to enhancing corporate governance standards. We've taken concrete steps to ensure compliance with the Companies Act and the rigorous requirements outlined in Coal India Limited's listing agreement with stock exchanges, given our status as an ultimate subsidiary through Central Coalfields Limited. The Department of Public Enterprises' guidelines on corporate governance for CPSEs, issued by the Ministry of Finance, Government of India, are also rigorously followed.
To emphasize our commitment to shareholders, we have ensured the financial statements are prepared in line with the company's accounting policies and Accounting Standards, accurately reflecting the company's financial condition. The effectiveness of the company's internal control system has been acknowledged. The Statutory Auditors have issued an unqualified Audit Report, and the Comptroller & Auditor General of India (CAG) has made no comments on the company's accounts for the Financial Year 2023-24.
JCRL is dedicated to both business growth and societal development. Our Corporate Social Responsibility (CSR) project is designed to support marginalized communities, focusing primarily on health, education, and the infrastructure development. In FY 2023-24, JCRL invested ₹9.18 Lakh in CSR initiatives aimed at improving school infrastructures and providing various amenities at schools near our project sites. Through these efforts, we strive to contribute to societal betterment and create meaningful, sustainable changes in the lives of those in need. We remain committed to building a sustainable society in the coming years.
I acknowledge with deep sense of appreciation the co-operation, valuable support and guidance received from the Ministry of Coal, Ministry of Railways and Government of Jharkhand, Coal India Limited, Central Coalfields Limited, IRCON International Limited and district administration.
I acknowledge the support of all stakeholders to develop the Rail Corridor in this region. Progress so far in the Corridor would not have been possible without the unstinted efforts of those, who believed in the venture and extended their hands to join our commitment
I also record their appreciation for the services rendered by the Officers and staff of the Director General of Audit (Coal), the Comptroller & Auditor General of India and Registrar of Companies, Jharkhand.
Lastly, I express my sincere gratitude to our dedicated team for their hard work and strong commitment to executing the project.
Thanking You,
Sd/-
Pawan Kumar Mishra
(Chairman)
DIN- 09665365
