Coal India's seven projects to be developed by MDOs

16 Dec 2022 CW Team

The state-owned CIL has given instructions for the development of seven coal projects by mine developers and operators (MDOs).

The goal of engaging MDOs through open worldwide auctions is to enhance domestic coal output and, to the greatest extent possible, minimise dependency on imports.

"Coal India (CIL) has issued letters of acceptance for seven coal projects to be pursued through the engagement of Mine Developer and Operators," the Maharatna firm said in a statement.

Three of these seven projects are owned by Central Coalfields (CCL), a subsidiary of CIL, and two are owned by Mahanadi Coalfields (MCL), another subsidiary of CIL.

South Eastern Coalfields and Eastern Coalfields each have a single project.

The coal behemoth is tracking 15 new coal projects that will mine coal using MDOs. CIL will invest Rs 206 billion in land acquisition, rehabilitation, and resettlement, as well as railway sidings in select cases.

The function of MDOs would be to excavate, extract and deliver coal to the firms in accordance with the approved mining plan. CIL is the sole owner of the mines and coal.

Sale of coal would be done by CIL. MDOs would bring to the table technology infusion, the bulk of the capex investment, economic viability and efficiency in operations for increased production.

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