Govt awards 18 of 28 coal mines to leading private mining companies

The government on Tuesday said of the 28 coal mining projects identified to be operated through mining operators-cum-developers, 18 mines have been awarded to leading private firms.

The engagement of these mining developers-cum-operators (MDOs) promises to make substantial contributions to coal production, ensuring both enhanced output and operational excellence.

"Initially, CIL (Coal India) identified 15 coal mine projects with a combined capacity of 168 MT (million tonnes) for MDO implementation. This number has now expanded to 28 projects (18 opencast and 10 underground mines) with a total capacity of 257 MT.

As of today, 18 mines have been awarded to leading private parties, marking a significant milestone in this ambitious endeavour," the coal ministry said in a statement.

The primary goal of engaging MDOs is to significantly increase coal production by streamlining operations, enhancing productivity, and reducing mining costs.

These operators, selected through open global tenders, will oversee the entire mining process, from excavation and extraction to the delivery of coal, in line with the agreement, the statement said.

These MDOs are tasked with excavating, extracting, and delivering coal to CIL as per approved mining plans, thereby boosting domestic coal output.

By partnering with MDOs known for their advanced technological capabilities, CIL aims to modernise mining practices and improve operational efficiency.