Efforts to Engage Reputed Mining Developers cum Operators in Coal Mines

Coal India Ltd Issues Letters of Acceptance for Nine Such Greenfield Projects. Total Fifteen Projects Having 169 Million Ton Capacity on Offer

Jan 11: The Ministry of Coal intends to engage reputed Mining Developers cum Operators (MDOs) in coal mines through open global tenders, ramp up domestic coal production and reduce import dependency to the extent possible. The contract period of engagement is for 25 years or the life of mine, whichever is less.

The state-owned coal miner is tracking 15 greenfield projects for implementation through MDOs with an investment component to the tune of around Rs.20600 crores, mainly of land acquisition, rehabilitation and resettlement issues, and in some cases on railway sidings.

Having a total rated capacity of around 169 Million Tons (MT), eleven of the fifteen projects are opencast, and four are underground mines. While the size of opencast projects is 165 MT, underground projects add up to the rest.

The MDOs would excavate and deliver coal to coal companies following the approved mining plan. MDOs would bring, to the table, mutually beneficial technology infusion, economically viable operations and increased production. Since contracts offered to them are on a long-term basis, allied infrastructure at mine projects also would be developed by these private players. They shall facilitate R&R issues, land acquisition, green clearances and coordination with State and Central Pollution Boards.

Coal India Limited (CIL) has issued letters of acceptance for nine coal projects to be pursued through the engagement of Mine Developer cum operator mode. Cumulatively, these projects have a production capacity of 127 million tonnes per year. The remaining six projects are at different stages of tendering.

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