Seven coal projects have received acceptance letters from Coal India (CIL) and will continue with the help of Mine Developers and Operators (MDO). These initiatives together have a production capacity of approximately 100 million tonnes per year (MT/Y).
The aim of sourcing MDGs through public global bidding is to boost domestic coal production and, to the extent possible, reduce reliance on imports.
A total of fifteen Greenfield coal projects are being tracked by the state miner for MDO mining. The investment portion of CIL is said to total Rs 206 billion with most of that amount going towards land acquisition, rehabilitation and resettlement. occasionally also on sidings.
The contract duration is for 25 years.
Under the authorized mining plan, the job of MDOs would be to excavate, extract and supply coal to CIL's coal firms. CIL is the sole owner of the mines and coal. CIL would handle the sale of coal. MDGs would contribute technology, most of the capital expenditure, economic viability and operational efficiency to higher production.