BCCL signs 1st MDO contract for coking coal extraction with 3 companies

New Delhi: Aiming to augment the production of coking coal in India, Bharat Coking Coal Limited (BCCL) awarded the work of re-opening, salvaging, rehabilitating, developing, constructing and operating three areas of the PSU for excavation and extraction of coal and its delivery to the authority to three private companies. The contract has been awarded under MDO Model on revenue sharing basis, said an official statement released by the Ministry of Coal on Wednesday.

First contract based on MDO model awarded for coking coal

“M/s RK Transport Co was awarded for Katras Area for a period of 25 (Twenty-Five) years @ 9 percent Revenue share to BCCL. This is a first for coking coal in India. The LOA was issued on 21.03.2023 for the quoted coal production of 25.70 MT for 25 years, 1.4 MT being the proposed annual capacity. BCCL awarded the work at PB Area to M/s Eagle Infra India Ltd for a period of 25 years @ 6 percent revenue share. The LOA was issued on 21.03.2023 for the quoted coal production of 52.00 MT for 25 years, 2.7 MT being the proposed annual capacity,” said the Coal Ministry.

“Likewise, M/s Vensar Constructions Company Ltd was awarded for Sijua Area for a period of 25 years @ 7.29 percent revenue share. The LOA has been issued on 21.03.2023 for the quoted coal production of 28.485 MT for 25 years, 1.285 MT being the proposed annual capacity,” the ministry added.

Coking coal is a crucial input for the iron and steel industries. India has limited reserves of coking coal. However, in order to reduce its dependence on imports, the government has set the target of 140 MT of coking coal by 2030. While Coal India Limited (CIL) has been given a production target of 105 MT by 2030, others including captive coking coal blocks are to contribute 35 MT.

According to the National Steel Policy 2017, to achieve steel-making capacity of 300 MTPA (including 180 MTPA through Blast Furnace route) by 2030, ~170 MT coking coal will be required by 2030. The government has launched the Coking Coal Mission to meet the demand for domestic coking coal as projected by the Ministry of Steel.

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