Coal India to offer 10 coal mines to global MDOs to boost coal production: Govt

New Delhi: State-run Coal India Limited (CIL) has identified 10 coal mines which are going to be offered to global Mining Developers-cum-Operators (MDOs) as part of a bid to boost coal production, said the Ministry of Coal. “Initially, CIL identified 15 coal mine projects with a combined capacity of ~168 MT for MDO implementation. This number has now expanded to 28 projects (18 opencast and 10 underground mines) with a total capacity of ~257 MT. As of today, 18 mines have been awarded to leading private parties, marking a significant milestone in this ambitious endeavour,” said the ministry on Tuesday. This leaves 10 more coal mines which the state-run miner will offer to private entities through open global tenders.

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“The Ministry of Coal has embarked on a transformative initiative to revolutionise coal mining by engaging Mining Developers-cum-Operators (MDOs) for major coal mine projects under Coal India Limited (CIL) to significantly enhance coal production, reduce reliance on imported coal, and introduce cutting-edge technology into the mining sector,” said the Coal Ministry.

Coal India to engage MDOs through open global tenders

The primary goal of engaging MDOs is to significantly increase coal production by streamlining operations, enhancing productivity, and reducing mining costs, said the Ministry of Coal. These reputed operators, selected through open global tenders, will oversee the entire mining process, from excavation and extraction to the delivery of coal, in line with the agreement.

“These MDOs are tasked with excavating, extracting, and delivering coal to Coal India Limited (CIL) according to approved mining plans, thereby boosting domestic coal output. By partnering with MDOs known for their advanced technological capabilities, CIL aims to modernise mining practices and improve operational efficiency,” said the Coal Ministry. The engagement of these MDOs promises to make substantial contributions to coal production, ensuring both enhanced output and operational excellence, it added.

“The Ministry of Coal’s strategy to engage MDOs represents a significant step towards modernizing India’s coal mining sector. By leveraging the expertise of reputable MDOs, CIL aims to enhance coal production capabilities, improve operational efficiencies, and reduce reliance on coal imports, ultimately contributing to India’s energy security and economic growth,” said the Coal Ministry.

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