With the private sector not allowed to do merchant mining of coal, the mine developer and operator (MDO) model is likely to dominate the Indian coal sector once all the mines allocated become operational in 5-6 years, official sources said.
Over 40 mines with an annual capacity to produce more than 500 million tonne of coal have been allocated to state and central governments besides public sector units through competitive bidding.
These entities are likely to outsource the mining to MDO contractors, sources said.
Currently, coal for merchant mining is not allowed to the private sector and the only available route for them to enter the sector is through the mine developer-cum-operator route.
