The main objective of cooperation with MDOs is to significantly increase coal production.
The government said on Tuesday that of the 28 coal mining projects operated by mining companies/developers, 18 have been awarded to leading private companies.
The involvement of these project developers and operators (MDOs) in the mining sector promises to make a substantial contribution to coal production, ensuring both higher output and operational excellence.
“Initially, CIL (Coal India) identified 15 coal mining projects with a combined capacity of 168 MT (million tonnes) for MDO implementation. This has now been expanded to 28 projects (18 open pit and 10 underground mines) with a total capacity of 257 MT.
So far, 18 mines have been awarded to leading private parties, marking a significant milestone in this ambitious endeavor,” the Coal Ministry said in a statement.
The main objective of the collaboration with MDOs is to significantly increase coal production by streamlining operations, improving productivity and reducing mining costs.
These operators, selected through open global tenders, will oversee the entire mining process, from excavation and extraction to coal delivery, in accordance with the agreement, the statement said.
These MDOs are tasked with excavating, mining and supplying coal to CIL as per approved mining plans, thereby increasing domestic coal production.
By partnering with MDOs known for their advanced technological capabilities, CIL aims to modernize mining practices and improve operational efficiency.
First publication: Aug 13, 2024 | 11:24 PM IST