Coal India bullish on pursuing projects through MDO mode

NEW DELHI: Coal India Ltd (CIL) has allotted nine projects to be pursued through the mine developer cum operator (MDO) mode.

The MDOs would excavate and deliver coal to the companies in accordance with the approved mining plan, sources said.

MDOs, sources say, bring to the table mutually beneficial technology infusion, economically viable operations and increased production.

Since contracts offered to them are on long-term basis, allied infrastructure at mine projects also would be developed by these private players.

They shall facilitate rehabilitation and resettlement issues, land acquisition, green clearances and coordination with state and central pollution boards, sources added.

These nine projects have production capacity of close to 127 million tonne per year.

The CIL, in all, is tracking 15 greenfield projects, including the aforementioned nine projects, which it plans to implement through MDOs. The remaining six projects are at different stages of tendering.

The ministry plans to engage reputed MDOs in coal mines, through open global tenders, and to ramp up domestic coal production in order to reduce import dependency to the extent possible.

The contract period of engagement of MDOs is for 25 years or life of mine whichever is less.