23 Jun 2020

CIL to Engage MDOs to Boost Coal Output

23 Jun 2020  by PTI   

Coal India Limited (CIL) will engage mine developer cum operators (MDOs) to increase its coal output and reduce import dependency of the dry fuel in the coming years. The Maharatna coal mining behemoth in the process has identified a total of 15 greenfield projects to operate through MDO model of which 12 are open cast and 3 underground, a release by Western Coalfields Ltd (WCL) - subsidiary of CIL - said.

Combined, they have a total targeted capacity of around 168 million tonne/year (MTY).

While the OC projects have a targeted capacity of 162 MTY, UG projects have close to 6 MTY.

The contract period would be for 25 years or life of mine whichever is less.

"CIL will engage MDOs of international repute, having state-of-the-art-technology through open global tenders, who shall excavate, extract and deliver coal to the coal companies of CIL as per the approved mining plan.

"CIL's board recently has given its nod in regard to standard bid document and request for bids for the engagement of MDOs. CIL is laying out plans to complete the formalities by 2021-22 so that all projects become operational and start yielding the output to contribute in 1 BT by 2023-24," it said.

It further informed that upcoming identified projects of Mahanadi Coalfields Limited, South Eastern Coalfields and Central Coalfields Limited will form major segments for the MDO mode with targeted capacities of 65.5 MTY, 52.4 MTY and 45 MTY, respectively.

Eastern Coalfields Limited and Northern Coalfields Limited will have projects with targeted capacities of 3 MTY and 2 MTY, respectively.

"Notice Inviting Tender (NIT) for 2 Projects, Siarmal OC of MCL (40 MTY) and Kotre-Basantpur Pachmo of CCL (5 MTY) together having a targeted capacity of 45 MTY has been floated in 2019-20. While NIT for 5 Projects for a targeted capacity of 68 MTY will be floated in the ongoing fiscal, for the balance 8 projects NIT will be floated in the fiscal, 2021- 22," the release said.

It also informed reputed MDOs would be engaged to have multiple advantage of technology infusion, and operational efficiency in the system apart from increased production.

MDOs will facilitate R&R issues, land acquisitions, green clearances and coordination with state and central pollution boards.

Since contracts to them are on long-term basis, allied infrastructure will also be developed.

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