Coal India (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 year (MT/Y).
The intent of engaging MDOs through open global tenders is to increase domestic coal output and reduce import dependency to extent possible.
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. In some cases on railway sidings as well.
The contract period of engagement is for 25 years or life of mine whichever is less.
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 rests with CIL. Sale of 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.
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