Coal India to appoint MDO for 168 mt greenfield projects

KOLKATA: Coal India will engage mine developer and operators (MDO) to increase output from greenfield projects by 30%, the company said in a statement.

It has identified a dozen opencast mines with a target capacity of 162 million tonnes a year and three underground ones of 6 million tonnes.

A company executive said contracts would be for 25 years or the life of the mine, whichever is less. It will save capital expenditure (capex) on equipment and civil construction costs. The company would, however, spend on rehabilitation and resettlement of affected families, he said.

It plans to engage MDOs of international repute through global tenders to bring new technology, efficiency and higher output, the statement said.

“CIL is in the process of laying out plans to complete formalities by 2021-22 so that all projects become operational and start contributing to its one billion tonnes production target for 2023-24,” it said in the statement.

According to CIL, notice inviting tender (NIT) for two projects, Siarmal Open Cast Mines of MCL (40 MTY) and Kotre-Basantpur Pachmo of CCL (5 MTY), were floated in 2019-20. NIT for five projects with total targeted capacity of 68 MTY will be floated during the current fiscal. NIT for the balance eight projects will be floated in 2021-22.