Coal India to engage MDOs in greenfield projects to ramp up production

By: |
June 19, 2020 4:55 AM

Tenders have been framed with such conditions since the contracts are on a long-term basis and the MDOs would require to create allied infrastructure to carry out mining, a CIL official said.

The CIL board has recently has given its approval in regard to standard bid document and request for bids for the engagement of MDOs.The CIL board has recently has given its approval in regard to standard bid document and request for bids for the engagement of MDOs.

Mining behemoth Coal India (CIL) has decided to engage mine developer cum operators (MDOs) to produce 168 million tonne (MT) per annum from 15 greenfield projects which will help in ramping up productivity to 1 billion tonne by 2024-25.

Engaging MDOs in greenfield projects is a transformative plan, while having them to operate in 12 open cast (OC) mines and three underground (UG) mines, a CIL official said. While the MDOs are going to start off with 15, further mines might be added in the near future to get better output.

Engagement of MDOs would have the advantage of technology infusion and operational efficiency but most importantly, the MDOs will have to facilitate relief and rehablitation while also doing the land acquisition. This has so long has been a great headache for CIL. The MDOs themselves will need to obtain green clearances and coordinate with state and central pollution boards, freeing CIL from such activities for the identified mines.

Tenders have been framed with such conditions since the contracts are on a long-term basis and the MDOs would require to create allied infrastructure to carry out mining, a CIL official said.

The OC projects have a targeted capacity of 162 MT a year but the UG projects add up to only 6 MT a year. The contract period would be for 25 years or life of mine whichever is less.

CIL said it would engage MDOs of international repute, having latest technology through open global tenders. The MDO shall excavate, extract and deliver mined coal to the coal companies of CIIL but the MDO has to carry out mining according to the approved mining plan of the PSU miner.

The CIL board has recently has given its approval 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.

Upcoming identified projects of Mahanadi Coalfields (MCL) South Eastern Coalfields (SECL) and Central Coalfields (CCL) will form major segments for the MDO mode with targeted capacities of 65.5 MT per annum (mtpa) 52.4 (mtpa) and 45 (mtpa), respectively. Eastern Coalfields (ECL) and Northern Coalfields (NCL), where MDOs will operate UG mines will have projects with targeted capacities of 3 mtpas respectively.

Notice inviting tender (NIT) for two Projects, Siarmal OC of MCL (40 mtpa) and Kotre-Basantpur Pachmo of CCL (5 mtpa) has been floated in FY20. While NIT for five projects for a targeted capacity of 68 mtpa will be floated in the ongoing fiscal, for the balance eight projects NIT is likely to be floated in FY22.

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