Pelma to become SECL's first opencast mine to produce coal under MDO mode

New Delhi: South Eastern Coalfields Limited's (SECL) Pelma coal mine will become the first opencast mine in Chhattisgarh to be developed under MDO (Mine Developer and Operator) mode. SECL, a subsidiary of Coal India Limited (CIL), has signed an agreement with Pelma Collieries to operate the Pelma opencast mine located in Raigarh area. According to the agreement, Pelma Collieries will operate the Pelma coal mine for the next 20 years, under which Pelma Collieries will be responsible for all activities related to designing, financing, procurement, construction, operation and maintenance of the project.

219 MT of high-grade coal to be extracted from SECL's Pelma coal mine

More than 219 million tonnes of coal is proposed to be extracted from the mine during a period of 20 years, with an annual target of 15 million tonnes of coal, said an official statement on Thursday. High quality G-12 grade coal will be extracted from the mine.

"The MDO mode is a novel concept of mine operation under which the government and private enterprises will work together to fulfil the country's energy needs. This will help in expansion of coal production of SECL and will play an important role in achieving 1 billion tonne production target of Coal India," said the statement.

SECL to develop more coal mines under MDO mode

SECL has succeeded in starting its old and closed mines under MDO mode. Ketki UG of Bishrampur area has achieved the distinction of becoming the first coal mine in India to produce coal on MDO mode. On the other hand, Letter of Award (LoA) has also been issued to Kalyani UG Mine of Bhatgaon area for operating it on MDO - revenue sharing model. Along with this, SECL is also working towards starting other projects on MDO mode.

SECL Raigarh area is a strategically important coalfield in terms of coal reserve and the area will majorly contribute towards the total production of SECL in the coming future. It is the third largest coalfield in the country with an estimated coal reserve of about 1900 million tonnes. Rail corridor is also being developed in this area by SECL for speedy evacuation of coal.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, Join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)