Govt unveils plan to boost coal production through hi-tech global mining operators

New Delhi: The Ministry of Coal has embarked on a transformative initiative to modernise coal mining by engaging global Mining Developers cum Operators (MDOs) for major coal mine projects under Coal India Limited(CIL) to significantly enhance coal production, reduce reliance on imported coal with the introduction of cutting-edge technology into the mining sector.

The Coal Ministry said on Tuesday that these MDOs are tasked with excavating, extracting, and delivering coal to Coal India Limited (CIL) according to approved mining plans, thereby boosting domestic coal output.

By partnering with MDOs known for their advanced technological capabilities, CIL aims to modernise mining practices reduce costs and improve operational efficiency, according to the ministry’s statement.

Initially, CIL identified 15 coal mine projects with a combined capacity of 168 million tonnes for MDO implementation. This number has now expanded to 28 projects (18 opencast and 10 underground mines) with a total capacity of 257 million tonnes.

As of today, 18 mines have been awarded to leading private parties, marking a significant milestone in this ambitious endeavour. The engagement of these MDOs promises to make substantial contributions to coal production, ensuring both enhanced output and operational excellence.

The ministry said that these reputed operators, selected through open global tenders, will oversee the entire mining process, from excavation and extraction to the delivery of coal, in line with the agreement. Their involvement is anticipated to inject advanced technology and operational efficiency into the system, driving marked improvements in production capabilities.

It said that in addition to boosting production, the MDOs will manage crucial aspects such as Rehabilitation and Resettlement (R&R) issues, land acquisitions, and environmental clearances.

“They will also coordinate with State and Central Pollution Control Boards to guarantee rigorous adherence to environmental standards. Each contract with the MDOs will span 25 years or the life of the mine, whichever is shorter, ensuring long-term stability and consistent advancements in mining operations,” the ministry added.