Efforts are on to engage reputed Mining Developers cum Operators in coal mines: Coal Ministry

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26 Aug, 2025 12:21

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The Ministry of Coal on January 10 said that they intent to engage reputed Mining Developers cum Operators (MDOs) in coal mines, through open global tenders, and to ramp up domestic coal production and reduce import dependency to the extent possible.

The contract period of the said engagement is for 25 years or life of the coal mine whichever is less, according to a government press release.

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The state-owned coal miner is tracking a total of 15 greenfield projects for implementation through MDOs with an investment of around Rs 20,600 crores, the release said. This is largely for land acquisition, rehabilitation and resettlement issues, and also railway sidings, in some cases.

"Having total rated capacity of around 169 Million Ton (MT) eleven of the fifteen projects, are opencast and four underground mines. While the capacity of opencast projects is 165 MT, underground projects add up to the rest," the release further stated.

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The MDOs would excavate and deliver coal to coal companies in line with the approved mining plan. "MDOs would bring to the table mutually beneficial technology infusion, economically viable operations and increased production. Since contracts offered to them are on long-term basis, allied infrastructure at mine projects also would be developed by these private players. They shall facilitate R&R issues, land acquisition, green clearances and coordination with State and Central Pollution Boards," the release said.

According to the release, Coal India Limited (CIL) has issued letters of acceptance for nine coal projects to be pursued through engagement of MDO mode. Cumulatively, these projects have production capacity of close to 127 MT per year. The remaining six projects are at different stages of tendering.