Coal India issues seven coal projects' LoAs through MDO engagement

19 Dec 2022 CW Team

Seven coal projects have received letters of acceptance from Coal India (CIL), and will be pursued with the help of mine developers and operators (MDO). These initiatives together have a manufacturing capability of around 100 million metric tonne annually (MT/Y).

The goal of involving MDOs through public global bids is to boost domestic coal production and, to the greatest extent possible, lessen reliance on imports.

A total of fifteen Greenfield coal projects are being tracked by the state-owned coal miner for MDO coal mining. The investment portion of CIL would total Rs 206 billion, with the majority of that amount going toward land acquisition, rehabilitation, and resettlement issues. occasionally on railroad sidings as well.

The engagement duration is for 25 years.

According to the authorised mining plan, MDOs' job would be to excavate, extract, and deliver coal to CIL's coal firms. CIL is the sole owner of the mines and coal. CIL would handle coal sales. MDOs would contribute technology, the majority of the capital expenditures, economic feasibility, and operational efficiency for higher production.

Also read:
India imports 131.92 MT coal worth Rs 2.3 trillion
Punjab proposes all coal from Odisha be transported by rail

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