The Ministry of Coal has initiated a groundbreaking strategy to transform coal mining by engaging Mining Developers cum Operators (MDOs) for major coal projects under Coal India Limited (CIL). This initiative is designed to substantially increase coal production, decrease dependency on imported coal, and integrate state-of-the-art technology into India’s mining sector.
The primary objective of involving MDOs is to significantly boost coal output by optimising operations, enhancing productivity, and minimising mining costs. These MDOs are responsible for the entire coal mining process, from excavation and extraction to the delivery of coal to Coal India Limited (CIL), adhering to approved mining plans. By collaborating with MDOs known for their advanced technological expertise, CIL seeks to modernize mining practices and elevate operational efficiency.
Initially, CIL identified 15 coal mine projects with a collective capacity of approximately 168 million tonnes (MT) for MDO engagement. This number has since expanded to 28 projects, comprising 18 opencast and 10 underground mines, with a total capacity of around 257 MT. To date, 18 of these mines have been awarded to leading private entities, marking a critical milestone in this ambitious project. The participation of these MDOs is expected to significantly contribute to coal production, ensuring both increased output and excellence in operations.
The selected operators, chosen through an open global tender process, will oversee all aspects of the mining operations, from initial excavation to final coal delivery, as per the contractual agreements. Their involvement is anticipated to introduce cutting-edge technology and unrivalled operational efficiency into the mining sector, leading to substantial improvements in production capacity.
Beyond production enhancement, the MDOs will also manage key components such as Rehabilitation and Resettlement (R&R), land acquisitions, and environmental clearances. Additionally, they will coordinate with State and Central Pollution Control Boards to ensure strict compliance with environmental regulations. Each MDO contract is set for 25 years or the life of the mine, whichever is shorter, ensuring long-term stability and continuous advancements in mining operations.
The Ministry of Coal’s initiative to engage MDOs marks a pivotal step towards the modernization of India’s coal mining sector. By leveraging the expertise of reputable MDOs, CIL aims to elevate coal production, improve operational efficiency, and reduce reliance on coal imports, thereby strengthening India’s energy security and fostering economic growth.
