Coal India Issues LoAs For Seven Coal Projects

These projects will be pursued through the engagement of Mine Developers and Operators (MDOs) and have a production capacity of nearly 100 million tonnes per year

Coal India (CIL) on Wednesday issued letters of acceptance for seven coal projects to be pursued through the engagement of Mine Developers and Operators (MDOs).

In a regulatory filing, the coal miner said that these projects have a production capacity of nearly 100 million tonnes per year (MT/Y).

It added that the intent of engaging MDOs through open global tenders is to increase domestic coal output and reduce import dependency.

Three out of seven of these projects belong to CCL, two to MCL, while the SECL and ECL account for a solo project each.

Coal India is tracking fifteen Greenfield coal projects to mine coal through MDOs.

Its investment component would be to the tune of Rs 20,600 Crores, largely spread on land acquisition, rehabilitation, and resettlement issues. 

The contract period of engagement is for 25 years or the life of mine, whichever is less.

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

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

Private players would also develop the allied infrastructure at mine projects.

“They shall facilitate R&R issues, land acquisitions, green clearances and coordination with state and Central Pollution Boards for fast-tracking the required approvals,” it said.