The Coal Ministry Reveals a Bold Strategy to Increase Coal Production

In order to significantly increase coal production, decrease reliance on imported coal, and introduce cutting-edge technology into the mining sector, the Ministry of Coal has embarked on a transformative initiative to revolutionise coal mining. This initiative involves engaging Mining Developers cum Operators (MDOs) for major coal mine projects under the Coal India Limited (CIL) umbrella.

Mining Developers cum Operators (MDOs) are being brought in with the primary objective of dramatically increasing coal production through the simplification of operations, the enhancement of productivity, and the reduction of mining expenses. To increase the amount of coal that is produced domestically, these MDOs are entrusted with excavating, extracting, and delivering coal to Coal India Limited (CIL) in accordance with authorised mining plans. CIL's goal is to modernise mining techniques and increase operational efficiency by forming partnerships with MDOs that are well-known for their sophisticated technological capabilities.

CIL identifies 15 coal mine projects

For the initial phase of the MDO implementation, CIL identified fifteen coal mine projects that had a total capacity of approximately 168 MT. Currently, there are a total of 28 projects, consisting of 18 opencast mines and 10 underground mines, with a combined capacity of around 257 metric tonnes. The awarding of 18 mines to prominent private parties marks a key milestone in this ambitious endeavour, which has been going on for quite some time. It is anticipated that the participation of these MDOs would result in significant contributions to the production of coal, which will guarantee both increased output and operational excellence within the industry.

According to the terms of the deal, these well-known operators will be in charge of overseeing the entire mining process, beginning with the excavation and extraction of coal and continuing all the way through to the delivery of the coal. Because of their participation, it is predicted that the system will receive cutting-edge technology and operational efficiency that has never been seen before, which will result in amazing enhancements to the capacities of production.

Various other plans of MDO

Managing important factors such as Rehabilitation and Resettlement (R&R) concerns, land acquisitions, and environmental clearances will be the responsibility of the MDOs, in addition to making production more efficient. To ensure that environmental regulations are adhered to in a stringent manner, they will also work with the State and Central Pollution Control Boards. For the purpose of assuring long-term stability and consistent advancements in mining operations, each contract with the MDOs will be for a period of 25 years or the life of the mine, whichever is shorter.

It is a key step towards modernising India's coal mining business that the Ministry of Coal has adopted a policy to engage MDOs. It is the goal of Coal India Limited (CIL) to improve coal production capacity, increase operational efficiencies, and decrease reliance on coal imports by utilising the experience of reputed MDOs. This would ultimately contribute to India's energy security and economic prosperity.

Two of the World’s Five Largest Coal Mines Now in India

WorldAtlas.com has published a list of the top ten largest coal mines in the world, and the Gevra and Kusmunda coal mines, located in Chhattisgarh, India, come in at number two and four.

StartupTalkyNitin Konde