Coal Production Set to Increase with Engagement of Mining Developers
The Indian government has taken a significant step towards boosting coal production by engaging Mining Developers-cum-Operators (MDOs) in the operation of 28 coal mining projects. These projects, with a combined capacity of 257 million tonnes, are expected to make substantial contributions to the country's coal output.
Initially, 15 coal mine projects with a capacity of 168 million tonnes were identified for MDO implementation. This number has now been expanded to 28 projects, including 18 opencast and 10 underground mines. As of today, 18 mines have been awarded to leading private firms, marking a significant milestone in this ambitious endeavor.
The primary goal of engaging MDOs is to significantly increase coal production by streamlining operations, enhancing productivity, and reducing mining costs. These 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.
These MDOs are tasked with excavating, extracting, and delivering coal to Coal India Limited (CIL) as per approved mining plans, thereby boosting domestic coal output. By partnering with MDOs known for their advanced technological capabilities, CIL aims to modernize mining practices and improve operational efficiency.
This initiative is expected to play a crucial role in meeting the growing demand for coal in the country, ensuring energy security and supporting economic growth.