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.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app