Maharashtra State Mining Corporation Limited Presentation to Chairman & Managing Director National Small Industries Corporation Limited Coal E-distribution Services in Odisha Aug 09, 2017 E-Distribution of coal to MSMEs

Current Scenario – How Coal India sells its coal Fuel Supply Agreements (FSA): 463 Mn MT e-Auction: 68 Mn MT Through State Nominated Agencies: 7 Mn MT Figs pertain to FY’16 Earmarked quantity considered for SNA Maharashtra State Mining Corporation Limited

Current Scenario – State Nominated Agencies SNA’s are nominated by the State Govt. (Industries/Geology & Mining/MSME/FCS) SNA’s are required to sign FSA with the allocated CIL subsidiaries for supply of coal Coal can be supplied by SNA’s only to MSME’s of the state, who have no FSA’s with CIL The coal is supplied by CIL to SNA’s at a Notified Price SNA’s can add a maximum margin of 5% and sell to the eligible consumers Penalty applicable if 60% of CIL’s offered quantity is not lifted Maharashtra State Mining Corporation Limited

Understanding the Pain Points in Coal Distribution: Areas Consumer Management Coal Allocation, and Payment Delivery Order, and Lifting Invoicing, and Refund Coal Utilization Management Reporting/ MIS & Reports Complaint / Feedback Management Maharashtra State Mining Corporation Limited

1. Consumer Management : Issues Cause Our Solution 1. Delay in obtaining coal recommendation by consumers Due to multi level approval process by different authorities followed by physical inspection of the unit, considerable time is required to obtain recommendation. Following helps in reducing the processing time: Role based online approval system Digitized document repository Identification of areas causing delay in approvals 2. Consumer records are not readily accessible Consumer documents and corresponding records are maintained offline. Following enables ease in retrieving documents: Digitization of documents Centralized repository – documents/data 3. Validation of consumer documents is error prone Validity of the consumer documents are captured manually. System based checks and validation Maharashtra State Mining Corporation Limited

2. Coal Allocation & Payment: Issues Cause Our Solution No choice for consumers to book coal from preferred collieries Is decided by handling agent as there is no standard process to capture the preferences of consumers. Online demand module for consumers for capturing colliery wise preference. 2. Opaqueness related to coal allocation Is done manually by handling agent. Malpractices in allocation leading to frequent complaints. Computerized allocation based on predefined logic Enables equal and fair opportunity for consumers 3. Inconvenience for consumers to book coal Consumers are required to submit offline applications and they have to physically visit SNA's office within office hours. Online system for booking coal from anywhere, anytime 4. Inconvenience for consumers to make payments Consumers have to physically visit SNA's office for knowing the payment details. After making payments they have to submit the payment details to the SNA. Consumers can login to the system to view payment details and generate online Pay-slip System captures consumer wise transaction details Real-time status tracking Maharashtra State Mining Corporation Limited

3. Delivery Order & Lifting: Issues Cause Our Solution 1. Consumers cannot lift coal on their own Allocation done to consumers are clubbed together under a single CIL DO and the lifting is done by a handling agent. Since the lifting is controlled by a handling agent, the consumers have to depend on them to get coal. Allocation of consumers are individually mapped online with the CIL DOs. Consumers can now appoint own transporters or lifting agents for lifting the coal. The system generated authorization letters with QR Code enables the SNA to digitally capture the signatures of consumer and the transporter or lifting agent. 2. No visibility of coal dispatches Consumers do not have real-time information of when and how much quantity of coal is being lifted from colliery against their allotment, as lifting agent handles the same. Consumers can generate online loading slip with QR code, as per the loading schedule of colliery. Consumers have complete information on the quantity of coal lifted from collieries. Online status tracking for vehicle wise lifting. Maharashtra State Mining Corporation Limited

4. Invoicing & Refund: Issues Cause Our Solution 1. Delay in invoicing and refund to consumers Lifting records are maintained manually due to which the reconciliation process requires considerable time. Subsequently invoicing and processing refund to consumers gets delayed. Vehicle wise lifting record and transaction details are captured in the system which helps to complete the reconciliation faster. This results in faster invoicing and processing refunds to consumers. Maharashtra State Mining Corporation Limited

5. Coal Utilization : Issues Cause Our Solution Cumbersome process for managing coal utilization of consumers Consumers need to submit quarterly/ monthly coal utilization certificate to SNA after getting approved by the district authority. The process is highly inconvenient to SNA and consumers due to: High volume of documentation Delay in obtaining lifting details/invoices from SNA Physical movement of documents/files causes considerable delay Consumers to log in and generate the report towards coal lifted against their allocation Consumer to submit scanned supporting documents District authority to approve/ reject online SNA to get real time status Identification of areas causing delay in approvals Maharashtra State Mining Corporation Limited

6. Other Areas: Issues Issue Cause Our Solution 1. Real-time Reports/MIS are not available to SNA and consumers. Frequent follow-up required by consumers for knowing status. Reports/MIS are not readily available and have to be prepared manually by SNA. No provision for access of these reports to consumers. Customized Reports/MIS are generated by system Status tracking can be done on real time basis from anywhere. Eliminates physical follow-ups by consumers. 2. High volume of documentation needs to be managed by SNA Entire process is offline. SNA has to process DOs, Authorization letters, Loading slips manually which is time taking and is tedious. System generated DOs, authorization letters, loading slips, mail alerts, DSC based invoicing, reports, etc. This automation substantially eliminates manual efforts, leading to reduced processing time. 3. Management do not have any ready information on the progress or status of coal distribution. The data and records are maintained offline in different documents/ worksheets due to which reporting is tedious and error prone. Centralized Data Repository and customized dashboard enables real-time visibility on performance of the coal distribution in the state. 4. No standard mechanism to capture and track consumer complaints / feedback Consumers have to submit their complaint/ feedback through written applications. Online customer complaint handling system for capturing and tracking feedback and complaints from consumers Maharashtra State Mining Corporation Limited

Improvement Areas in the Coal Distribution Process The system has inefficiencies Processes are manual in nature, which is prone to errors & financial risks High amount of physical documentation High cycle time The system is inconvenient to SNA’s and consumers No visibility of coal allocation and dispatches, no historical data Lots of physical interactions, follow ups Customer complaints, legal cases, statutory compliance issues The system can be more transparent Allocation of coal to genuine consumers (MSME’s) in a fair manner Equal opportunity to all consumers to buy desired quality of coal at the right price Maharashtra State Mining Corporation Limited

Customer Needs – SNA and MSME’s Make it easy to manage coal distribution Transparency - Fair allocation of coal Convenience for SNA’s and MSME consumers Efficiency in the sales process in various areas - consumer registration, payments, DO generation, lifting management, invoicing, refund, reporting, etc. Maharashtra State Mining Corporation Limited

How can the Customer Needs be served better Make it easy to manage coal distribution Online platform to manage the entire process end-to-end Transparency Availability of data on public domain System based coal allocation process is based on a predefined logic Equal opportunity for all MSME’s to buy coal, leading to lesser complaints from MSME’s Maharashtra State Mining Corporation Limited

How can the Customer Needs be served better Convenience for SNA’s and MSME consumers 100 % online module – Ease of access, data can be accessed anytime from anywhere Digitization of all consumer records E-ledgers for consumers Real time status tracking of coal distribution. Real time MIS Consumers are not required to do physical follow-up System based checks for monitoring compliance, leading to better administrative control Maharashtra State Mining Corporation Limited

How can the Customer Needs be served better Improved business efficiency and quality of services Everything is system generated – DO’s, refund advice, mail alerts, DSC based invoicing, reports, etc. Reduction in manual processes minimizes the financial risks of SNA The chances of error prone reports and statements are significantly reduced Paperless operations, leading to reduced processing time Dedicated customer support Complaint management and tracking system Maharashtra State Mining Corporation Limited

Thank You