Seven projects for Coal India will be developed by MDOs

 

State-owned Coal India Limited (CIL) announced on Wednesday that it has given orders for the development of seven coal projects by mine developers and operators (MDOs).

Engaging MDOs through open international auctions aims to increase domestic coal output and, to the greatest extent possible, decrease dependency on imports.

The Maharashtrian company announced in a statement that "Coal India Limited (CIL) has issued letters of acceptance for seven coal projects to be pursued through engagement of Mine Developer and Operators."

Three of these seven projects are the responsibility of Central Coalfields Ltd (CCL), a subsidiary of CIL, and two are the responsibility of Mahanadi Coalfields Ltd (MCL).

There is only one project each for South Eastern Coalfields Ltd and Eastern Coalfield Ltd.

The MDO-based coal mining behemoth is keeping tabs on a total of 15 new coal projects. CIL will spend Rs 20,600 crore on issues related to land acquisition, rehabilitation, and resettlement, as well as on railway sidings in some situations.

According to the authorized mining plan, MDOs' job would be to excavate, extract, and deliver coal to the firms. CIL is the sole owner of the mines and coal.

CIL would handle coal sales. MDOs would contribute technology, the majority of the capital expenditures, economic feasibility, and operational efficiency for higher production.