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Coal India issues letters of acceptance for seven greenfield coal projects


New Delhi: Coal India Limited (CIL) has issued letters of acceptance (LoAs) for seven coal projects to be pursued through engagement of mine developer and operators (MDO) to ramp up its production.

“Cumulatively, these projects have production capacity of close to 100 million tonne per year (MT/Y),” it said.

The company added that the intent of engaging MDOs through open global tenders is to increase domestic coal output and reduce import dependency to the extent possible.

Of these seven projects, three belong to Central Coalfields Limited (CCL) and two to Mahanadi Coalfields Limited (MCL). South Eastern Coalfields Limited (SECL) and Eastern Coalfield Limited (ECL) account for a solitary project each.

Two of the projects, the Siarmal open cast project (OCP) of MCL, Odisha (50 MT/Y output capacity) and Hura ‘C’ OCP of ECL, West Bengal of (3 MT/Y capacity) are expected to start mining operations during the ongoing financial year, CIL said.

The state-owned coal miner is tracking a total of 15 greenfield coal projects to mine coal through MDOs.

“CIL’s investment component would be to the tune of Rs. 20,600 Crores largely spread on land acquisition, rehabilitation and resettlement issues. In some cases on railway sidings as well,” it said.

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

“Having a total rated capacity of around 169 MT/Y eleven of, the total fifteen projects, are opencast, and four are underground. While the capacity of OC projects is secured at 165 MTY, UG projects add up to the rest,” it added.

The role of MDOs would be to excavate, extract and deliver coal to CIL’s coal companies in accordance to the approved mining plan. Ownership of the mines and coal rests with CIL. Sale of coal would be done by CIL.

MDOs would bring to the table technology infusion, bulk of the capex investment, economic viability and efficiency in operations for increased production.

“Since contracts offered to them are on long-term basis, allied infrastructure at mine projects also would be developed by these private players. They shall facilitate R&R issues, land acquisitions, green clearances and coordination with State and Central Pollution Boards for fast tracking the required approvals,” it said.

Of the balance eight projects, LoA for two projects – Madannagar OCP (12 MT/Y) and Pelma OCP (15 MT/Y) of SECL will be issued shortly. The remaining projects are at different stages of tendering.

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