Coal India's seven projects to be developed by MDOs

The state-owned CIL has issued instructions for the development of seven coal projects by mine developers and operators (MDOs).

The aim of sourcing MDGs through open global auctions is to increase domestic coal production and, as far as possible, minimize reliance on imports.

“Coal India (CIL) has issued acceptance letters for seven coal projects to be undertaken by the deployment of Mine Developer and Operators,” Maharatna firm said in a statement.

South Eastern Coalfields and Eastern Coalfields each have one project.

The coal giant is tracking 15 new coal projects that will mine coal using MDOs. CIL will invest Rs 206 billion in land acquisition, rehabilitation and resettlement as well as railway yards in certain cases.

The function of MDOs would be to excavate, extract and deliver coal to the companies in accordance with the approved mining plan. CIL is the sole owner of the mines and coal.

Coal sales would be done by CIL. MDOs would bring to the table technology infusion, the bulk of capex investment, economic viability and efficiency in operations for increased production.