Coal India keen on pursuing projects through MDO mode

State-owned Coal India Ltd (CIL) has issued the letter of acceptance for nine coal mining projects, having a production capacity of around 127 million tonnes, to be operationalised through engagement of mine developers and operators.

Another six mining projects are at different stages of implementation.

The state-owned coal miner is tracking a "total of 15 greenfield projects for implementation through MDOs (mining developers-cum-operators) with an investment component to the tune of around Rs 20,600 crore largely pertaining to land acquisition, rehabilitation and resettlement issues, and in some cases on railway sidings," the Ministry of Coal said in a statement.

Having total rated capacity of around 169 MT, 11 of the 15 projects are opencast and the remaining four are underground mines.

While the capacity of opencast projects is 165 MT, underground projects add up to the rest.

To ramp up domestic coal production and reduce import dependency to the extent possible, the Ministry of Coal has said it intends to engage reputed Mining Developers cum Operators (MDOs) in coal mines through open global tenders.

The MDOs would excavate and deliver coal to coal companies in accordance with 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.

The contract period of engagement is for 25 years or life of mine whichever is less, the Ministry said.