Coal India issues 7 LoAs to MDOs

14 Dec 2022 , 01:37 PM

Coal India Limited (CIL) has issued letters of acceptance for seven coal projects to be pursued through Mine Developer and Operator model (MDO). These projects have a combined production capacity of nearly 100 million tonnes per year (MT/Y).

CCL owns three of the seven projects, while two belong to MCL. SECL and ECL each have a single project.

Two of the projects, the Siarmal open cast project (OCP) of MCL, Odisha, with a 50 MT/Y output capacity, and Hura ‘C’ OCP of ECL, West Bengal, with a 3 MT/Y output capacity, is expected to begin mining operations this fiscal year.

The state-owned coal miner is following fifteen Greenfield coal projects that will mine coal through MDOs.

CIL’s investment component would be Rs 20,600 crore, with the majority of the funds going toward land acquisition, rehabilitation, and resettlement. In some cases, they are also found on railway sidings.

The contract period of engagement is 25 years or mine’s life, whichever is shorter.

MDOs would be responsible for excavating, extracting, and delivering coal to CIL’s coal companies in accordance with the approved mining plan. CIL is the sole owner of the mines and coal.

SECL’s LoA for two of the remaining eight projects, Madannagar OCP (12 MT/Y) and Pelma OCP (15 MT/Y), will be issued shortly. The remaining six projects are in various stages of tendering.

At around 1.40 PM, Coal India was trading at Rs231.75 up by 0.09% from its previous closing of Rs231.55 on the BSE. The scrip touched an intraday high and low of Rs233.15 and Rs231.30 respectively.

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