Coal India won’t be hit by commercial mining: CIL

New Delhi (NVI): Coal India Limited (CIL) today said that it would continue to be the country’s leading coal producer even after the sector is opened up for private companies, the company said in a statement.

Coal India Limited (CIL) in a major move to increase its coal output and reduce import dependency of coal in the ensuing years has devised a transformative plan to engage Mine Developer cum Operators (MDO) in its mines.

The Maharatna coal mining behemoth in the process has identified a total of 15 greenfield projects, as on date, to operate through MDO model of which 12 are open cast and 3 underground. Combined, they have a total targeted capacity of around 168 Million Tonnes/Year (MTY). While the OC projects have a targeted capacity of 162 MTY, UG projects add up to the rest close to 6 MTY. The contract period would be for 25 years or life of mine whichever is less.

CIL will engage MDOs of international repute, having state-of-the-art-technology through open global tenders, who shall excavate, extract and deliver coal to the coal companies of CIL as per the approved mining plan. CIL’s Board recently has given its nod in regard to standard bid document and request for bids for the engagement of MDOs.

CIL is laying out plans to complete the formalities by 2021-22 so that all projects become operational and start yielding the output to contribute in 1 BT by 2023-24.

Upcoming identified projects of Mahanadi Coalfields Limited, South Eastern Coalfields and Central Coalfields Limited will form major segments for the MDO mode with targeted capacities of 65.5 MTY, 52.4 MTY and 45 MTY respectively. Eastern Coalfields Limited and Northern Coalfields Limited between them will have projects with targeted capacities of 3 MTY and 2 MTY respectively.

Notice Inviting Tender (NIT) for 2 Projects, Siarmal OC of MCL (40 MTY) and Kotre-Basantpur Pachmo of CCL (5 MTY) together having a targeted capacity of 45 MTY has been floated in 2019-20.  While NIT for 5 Projects for a targeted capacity of 68 MTY will be floated in the ongoing fiscal, for the balance 8 projects NIT will be floated in the fiscal, 2021-22.

Engagement of reputed MDOs would have multiple advantage of technology infusion, operational efficiency in the system apart from increased production. MDOs will facilitate R&R issues, land acquisitions, green clearances and coordination with State and Central Pollution Boards. Since contracts to them are on long-term basis allied infrastructure also would be developed.