ECL Reopens Two Closed Mines Under Revenue Sharing Model

04 Nov 2025 CW Team

Union Coal Minister G Kishan Reddy virtually inaugurated the operationalisation of two closed mining projects of Eastern Coalfields Ltd (ECL) under the Mine Developer and Operator (MDO) revenue sharing model. The move marks a strategic shift towards reviving loss-making assets and enhancing private participation in India’s coal mining sector.

The Gopinathpur open cast mine in the Mugma area of Dhanbad, Jharkhand, and the Chinakuri underground mine in Sodepur, Paschim Bardhaman, West Bengal, are the first two closed projects revived under this framework, according to ECL Chairman and Managing Director Satish Jha.

As part of its restructuring strategy, ECL amalgamated 16 loss-making mines into 10 and offered them to private operators through the MDO model. The initiative is expected to improve operational efficiency, reduce costs, and strengthen the company’s overall output and profitability through a sustainable revenue-sharing mechanism.

The Gopinathpur open cast project holds an extractable reserve of 13.73 million tonnes and a peak rated capacity (PRC) of 0.76 million tonnes per annum. The MDO partner will share 4.59 per cent of the project’s revenue with ECL. Coal production under the 25-year contract began on 13 September 2025.

The Chinakuri underground project, ECL’s first underground mine under the MDO model, has an extractable reserve of 16.7 million tonnes and a PRC of 1 million tonnes per year. The operator will share 8 per cent of the revenue with ECL over the 25-year period.

ECL said the operationalisation of these projects represents a “major milestone” in its turnaround plan and will contribute to the Ministry of Coal’s broader goal of improving production, sustainability, and competitiveness in India’s coal sector.

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