Mine Developers And Operators To Help CIL In Increasing Domestic Coal Output

Coal India Limited (CIL) has issued letters of acceptance for seven coal projects to be pursued through engagement of Mine Developer and operators (MDO).

Cumulatively, these projects have production capacity of close to 100 million tonne per annum (MTPA), CIL said in a statement on Wednesday (14 December).

The company said that the intent of engaging MDOs through open global tenders is to increase domestic coal output and reduce import dependency to the extent possible.

Of these seven projects, three belong to Central Coalfields Limited (CCL) and two to Mahanadi Coalfields Limited (MCL), the company said.

South Eastern Coalfields Limited (SECL) and Eastern Coalfields Limited (ECL) account for a solitary project each, it added.

Two of the projects, Siarmal open cast project (OCP) of MCL, Odisha having 50 MTPA output capacity and Hura ‘C’ OCP of ECL, West Bengal of 3 MTPA capacity are expected to start mining operations during the ongoing financial year, the company said.

The state owned coal miner is tracking a total of fifteen greenfield coal projects to mine coal through MDOs.

CIL’s investment component would be to the tune of Rs 20,600 crore largely spread on land acquisition, rehabilitation and resettlement issues.

The contract period of engagement is for 25 years or life of mine whichever is less.

Having total rated capacity of around 169 MTPA, eleven of the total fifteen projects are opencast and four underground.

While the capacity of opencast projects is secured at 165 MTPY, underground projects add up to the rest.

The role of MDOs would be to excavate, extract and deliver coal to CIL’s coal companies in accordance to the approved mining plan.

Ownership of the mines and coal will rest with CIL. Further, the sale of the coal would be done by CIL.

MDOs would bring to the table technology infusion, bulk of the capex investment, economic viability and efficiency in operations for increased production, the company said.

Since contracts offered to them are on long-term basis, allied infrastructure at mine projects also would be developed by these private players, it added.

They shall facilitate rehabilitation and resettlement (R&R) issues, land acquisitions, green clearances and coordination with State and Central Pollution Boards for fast tracking the required approvals, Coal India said.

"Of the balance 8 projects, LoA for two projects - Madannagar OCP (12 MT/Y) and Pelma OCP (15 MT/Y) of SECL will be issued shortly. The six remaining projects are at different stages of tendering," the company said.