Govt Allocates 18 Coal Mines to Private Operators

14 Aug 2024 CW Team

The government announced that out of the 28 coal mining projects designated for operation through mining operators-cum-developers (MDOs), 18 mines have been allocated to leading private firms. The involvement of these MDOs is expected to significantly contribute to coal production by enhancing output and operational efficiency.

The coal ministry indicated that initially, Coal India (CIL) had identified 15 coal mine projects with a combined capacity of 168 million tonnes (MT) for MDO implementation. This number has now increased to 28 projects, comprising 18 opencast and 10 underground mines, with a total capacity of 257 MT. As of the present, 18 mines have been awarded to prominent private entities, representing a major achievement in this ambitious initiative.

The main objective of engaging MDOs is to substantially boost coal production by streamlining operations, increasing productivity, and reducing mining costs. These operators, chosen through global tenders, will manage the entire mining process?from excavation and extraction to coal delivery?according to the agreed plans.

The MDOs will be responsible for excavating, extracting, and delivering coal to CIL as per the approved mining plans, thereby enhancing domestic coal production. By collaborating with MDOs known for their advanced technology, CIL aims to modernize mining practices and improve operational efficiency.

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