Model pact for developing CIL mines under PPP in final stage

Contract will be for 15 years initially and the operators will have to carry all the activities as per the approved project report of the block, says the company

The model contract agreement on public-private partnership mode for developing Coal India mines is in the final stage of approval.

"In consonance to the policy of GoI (Government of India) and further production capabilities of CIL, it has now been decided to work some of the mines of CIL through PPP mode. The model Contract Agreement (MCA) is in the final stage of approval by CIL board of directors," Coal India said in a report.

Under the public private partnership (PPP) model, the mine operator will develop and operate the mine, CIL said, adding that the contract will be for 15 years initially and the operators shall carry all the activities as per the approved project report of the block.

The government had earlier said that an explored green- field coal mine in Mahanadi coalfields is being taken up as a pilot project under PPP and the model concession agreement has been prepared by the Planning Commission for further discussions.

Coal India Ltd (CIL) board had earlier also discussed about concession agreement pertaining to PPP model.

The previous government had said there was a need to devise a policy on public-private framework with CIL as one of its partners to reduce the country's increasing dependence on imported coal.

CIL, which accounts for over 80% of the domestic coal output, missed the production target last fiscal and produced only 462 million tonnes (MT) of coal in 2013-14 as against the target of 482 MT.

Coal import increased by 17.9% to 171 million tonnes (mt) in 2013-14. Coal import was 145 million tonnes in 2012-13.