Coal India#39;s 7 projects to be developed by MDOs

The objective of engaging MDOs through open global tenders is to augment domestic coal production and reduce reliance on import to extent possible.

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State-owned CIL on Wednesday said it has issued orders for seven coal projects to be developed by mine developer and operators (MDOs).

The objective of engaging MDOs through open global tenders is to augment domestic coal production and reduce reliance on import to extent possible.

“Coal India Limited (CIL) has issued letters of acceptance for seven coal projects to be pursued through engagement of Mine Developer and Operators,” the maharatna firm said in a statement.

Of these seven projects, three belong to CIL arm Central Coalfields Ltd (CCL) and two to Mahanadi Coalfields Ltd (MCL)–another subsidiary of CIL.

South Eastern Coalfields Ltd and Eastern Coalfield Ltd account for a solitary project each.

The coal behemoth is tracking a total of 15 new coal projects to mine coal through MDOs. CIL will invest Rs 20,600 crore on land acquisition, rehabilitation and resettlement issues, and in some cases on railway sidings as well.

The role of MDOs would be to excavate, extract and deliver coal to the companies in accordance with the approved mining plan. Ownership of the mines and coal rests with CIL.

Sale of coal would be done by CIL. MDOs would bring to the table technology infusion, bulk of the capex investment, economic viability and efficiency in operations for increased production.