Information as per Section 217 (1) (e) read with the Companies (Disclosure of particulars in the Report of Board of Directors) Rules, 1988 and forming part of the Directors' Report for the year ended 31st March, 2011.

(A) Conservation of Energy

Fuel consumption and engine emission levels of the barge fleet, transport vehicles and earth moving equipment, together with the optimisation of electrical energy consumption in all activities, remains a focus area of the Company. Waste heat from the coke ovens is being utilised in the power plant to generate clean electrical energy.

(B) Technological Absorption

Particulars with respect to Technology Absorption are given below in the prescribed Form B:

Research and Development (R&D):

• Specific areas in which R&D have been carried out by the Company: The Company is looking for new process designs and applications of efficient machinery for iron ore beneficiation and mining on a continuous basis. Focus is also on towards process development work on the recovery of iron from tailings along with optimization of blend of various grades to achieve customer satisfaction and to conserve the iron ore resources. While the Company holds a patent in India for the system of producing metallurgical coke by the nonrecovery method based on the technology that it has developed, the European Patent Office has cleared the innovation for grant of patent in Europe. The technology is continuously upgraded through various initiatives. The US Patent Office has allowed issuance of patent on company's latest innovation titled Reduction of Sulphur-containing gases during conversion of coal into metallurgical coke. The Company has set up a state-of-the art Coal Carbonization Laboratory that is equipped with 1-tonne pilot non-recovery coke oven, developed in-house and is first of its kind in the non-recovery coke oven category, apart from modern facilities for coal characterization and coke quality evaluation. The facility is used for coal selection and optimization of coal blend.
• Benefits derived as a result of the above R & D: Reductions in operating cost and environmental control improvement, besides optimizing the product mix as well as conservation of resource are the results of the above activities. The coke business will also be reaping benefits through upgrading of technology.
• Future plans of action: Developmental work will continue to be carried out in all the above areas with a focus on cost reduction and quality improvement. The coke-making technology would be under continuous focus for further design improvements with an objective to reduce capital cost. Pilot oven facilities shall be used for maximizing cheaper semisoft coal through coal blend optimization tests

• Expenditure on R&D:

  	2009-2010 (Rs. in crore)	2009-2010(Rs. in crore)
  a) Capital	-	-
  b) Recurring (revenue)	0.29	0.29
  c) Total	0.29	0.29
  d) Total R & D expenditure as a percentage of total turnover	0.004%	0.006%

Technology Absorption, Adaptation and Innovation:

• Efforts made towards technology absorption, adaptation and innovation are outlined below: The Company maintains a close contact and continuous interaction with its principal shareholder, other consultants, its foreign associates, customers as well as with the suppliers of specialised equipment. Various innovative initiatives undertaken for enhancement of ecology have been detailed elsewhere above.
• Benefits derived as a result of the above efforts are inter alia:
  • Improved mining efficiencies and product quality control.
  • Improvement in pollution control system.
  • New design of coke ovens with better combustion control and improved conservation of heat energy.
  • Improved and sustainable resource and environment management.
• On completion of the research project conducted in association with the Microbiology Dept. of Goa University, Goa, mine land reclamation will become further effective.

(C) Foreign Exchange Earnings and Outgo

The Company's major foreign exchange earnings and outgo are on account of export of iron ore and import of coking coal respectively. During the year, foreign exchange earnings were Rs. 6,281 crore and outgo (including dividend remittance) Rs. 1,112 crore (details are given in Schedule 19). Hence, the net foreign exchange earning was Rs. 5,169 crore.

For and on behalf of the Board of Directors

		For and on behalf of the Board of Directors
Place: Panaji - Goa Dated: 25th April, 2011		G. D. Kamat Director	P.K. Mukherjee Managing Director