Need to award coal mines to MDOs to reach 1.5-BT coal production target: CIL CMD

New Delhi: For India to reach the target of 1.5 Billion Tonne (BT) coal production, Coal India Limited (CIL) will need to award coal mines and projects to Mine Developers cum Operators (MDOs), said Chairman PM Prasad on Monday. Speaking at a stakeholder consultation on MDO framework, organised by the Ministry of Coal, Prasad said, “We have set out for India the target of reaching 1.5 BT coal production in the next 4-5 years. This is not a small target. Our Prime Minister has asked us to stop the import of thermal coal completely. Unless our mines and projects are awarded to MDOs, it will be difficult to achieve this target. Both the authority and the mine operator need to work in tandem with each other to meet this target.”

He added that the 1.5 BT target will require all stakeholders, public and private, to come together and work towards achieving the goal.

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Consultations on MDO regime should include state govts: Reddy

In his keynote address, Union Minister of Coal G Kishan Reddy stressed on the need to include state governments in stakeholder consultations for the MDO regime. “Under the leadership of Prime Minister Narendra Modi, India’s economy is going to grow at rapid pace, manufacturing is expected to go up. And this growth cannot move a step forward without electricity. And for electricity generation, we need coal. We need to work together, therefore, to increase coal production,” said the minister.

The minister further emphasised that the coal industry has been a pivotal force in propelling our nation's progress and the effective MDO engagement will significantly contribute to reducing imports and increasing the self-sufficiency of the coal sector, furthering the vision of Prime Minister Shri Narendra Modi, of achieving Aatmanirbharta in the coal sector.

MDO model represents important partnership between public, private sectors: AS

Speaking on the occasion, Additional Coal Secretary Vismita Tej said, “The MDO framework has become more pivotal day-by-day to maintain productivity, sustainability and long-term growth of the coal mining sector. In addition to improving the overall performance and output of the coal mining industry, this model gives us a chance to leverage the operational capabilities and knowledge of the private sector.”

“The MDO model represents an important partnership between the public and private sectors, blending the vision of the government with the operational expertise and technological innovations of private players. This collaboration is key to modernising the coal mining industry,” she added.

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