1 BT production: Coal India identifies 15 projects to be operated on MDO model

• Of the 15 projects identified by the Maharatna coal mining behemoth, 12 are open cast and three are underground

• Coal India plans to engage MDOs of international repute, having state-of-the-art-technology through open global tenders

New Delhi: In a major move to increase its coal output and reduce dependency on import of coal in the coming years, Coal India Limited has identified a total of 15 greenfield projects to operate through MDO (Mine Developer cum Operator) model. Of the 15 projects identified by the Maharatna coal mining behemoth, 12 are open cast and three are underground. When combined, they have a total targeted capacity of around 168 MTY (Million Tonnes/Year). 

While the open cast projects have a targeted capacity of 162 MTY, underground projects add up to 6 MTY. The contract period would be for 25 years or the life of the mine, whichever is less, said Coal India.

Coal India to engage MDOs of international repute 

Coal India will engage MDOs of international repute, having state-of-the-art-technology through open global tenders, who shall excavate, extract, and deliver coal to the coal companies of CIL, as per the approved mining plan. CIL's Board has given its nod in regard to standard bid document and request for bids for the engagement of MDOs recently. 

CIL is laying out plans to complete the formalities by 2021-22, so that all projects become operational and start yielding the output to contribute 1 billion tonne coal production by 2023-24.  

Upcoming MDO projects

Upcoming identified projects of Mahanadi Coalfields Limited, South Eastern Coalfields, and Central Coalfields Limited will form major segments for the MDO mode with targeted capacities of 65.5 MTY, 52.4 MTY, and 45 MTY, respectively. Eastern Coalfields Limited and Northern Coalfields Limited will have projects with targeted capacities of 3 MTY and 2 MTY, respectively.     

Notice Inviting Tender (NIT) for two projects — Siarmal OC of MCL (40 MTY), and Kotre-Basantpur Pachmo of CCL (5 MTY) — has been floated in 2019-20. While NIT for five projects for a targeted capacity of 68 MTY will be floated in the ongoing fiscal, for the balance eight projects, NIT will be floated in fiscal 2021-22.

"Engagement of reputed MDOs would have multiple advantages of technology infusion, operational efficiency in the system, apart from increased production. MDOs will facilitate R&R issues, land acquisitions, green clearances, and coordination with state and central pollution boards. Since contracts to them are on long-term basis, allied infrastructure would also be developed," said Coal India.

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