The Ministry of Coal (MoC) has released an initiative to enhance coal mining by engaging Mining Developers cum Operators (MDOs) for major projects under Coal India Limited (CIL).
The primary goal of engaging MDOs is to increase coal production by improving operational efficiency and reducing mining costs. MDOs will be responsible for excavation, extraction, and delivery of coal to CIL based on approved mining plans, thereby enhancing domestic production. Initially, CIL had identified 15 projects with a combined capacity of 168 metric tonne (mt), which has now expanded to 28 projects, including 18 opencast and 10 underground mines, with a total capacity of around 257 mt.
As of now, 18 mines have been awarded to private operators through global tenders. These operators will manage the mining process and will also handle tasks like rehabilitation and resettlement, land acquisition, and environmental clearances. Each MDO contract will last 25 years or the life of the mine whichever is shorter.