TOTAL VALUE OF ORDER PLACED ON ANCILLARY INDUSTRIES:

i)    2010-11: Rs.754.12 Lakhs.
ii)   2009-10: Rs.717.45 Lakhs.

Steps taken for ‘e’-procurement:
ECL started e-procurement in this year for all items with a full fledged Cell within Materials Management department catering to the need of e-procurement activities of Purchase Deptt. All open/global tenders are being processed through e-tenders with e-price bids. Infrastructure support for successful implementation such as access to internet through broadband, LAN, updated software and other facilities for a safe and secure network has been set up. As a latest development, e-payment has also been made compulsory in all e-procurement.

However, Earnest Money Deposit and Tender fees are still being submitted off-line by way of Demand Draft. Accepting EMD/Tender Fees through Internet banking facilities like NEFT/RTGS is under study for its implementation in true spirit.

Reconciliation of Error-lines:
In ECL there was a huge difference in the quantity as reflected in Kardex balance vis-à-vis ledger balance and it was continuing for years together.

The Card balance should exactly match with the ledger balance and all out effort was taken to reconcile the difference between the Kardex balance and ledger balance.

At the start of the year the position of error lines of On-line Stores and Off-line Stores vis-à-vis the position end of the year 2010-11 is reflected as follows:-

Error-line Position	31.03.2011	31.03.2010
On-line Stores	44	1667
Off-line Stores	1177	7062

The balance error-lines shall be reconciled very soon and to stop further generation of error-lines, the system of receipt / issue voucher through D.T.I. along with material code has been introduced with effect from 01/04/2011. This will help in elimination of generation of new errors and also the system has been introduced that supply order shall be issue only with material code.

Inventory Management
There has been a substantial reduction in stock of stores both in terms of rupees as well as in terms of months consumption is as follows:-

Particulars	2010-11	2009-10
Stock of Stores (Rs. in Crore)	132.98	133.31
No. of months consumption	3.13	3.45

             
However, action is being taken in 2011-12 to further improve the position of inventory holding as because the obsolete and non-moving items are being identified which is now a part of the inventory holding and may be turned as dead inventory which we need to reduce by the effectively use of these dead inventory in other CIL subsidiaries / Govt. Undertakings / PSU wherever it may be required.

Disposal of Scrap
A comparative statement of money realization from scrap sale is as follows:-

Particulars	2010-11	2009-10
Money Realized (Rs. in Lakhs)	315.84	53.18

However, during the year 2011-12 the realization of revenue from scrap sale is expected to be increased and the target has been kept for Rs. 10.00 Crores to be realized from scrap sale in 2011-12.

Selling agreement with MSTC is expiring in Sept.2011 and the present service charge with MSTC is @ 2.25% of the money realized from scrap sale and we are going for an open tendering so that the service charge towards scrap sale is substantially reduced.