CIL starts outsourcing mines to raise production

NEW DELHI: Coal India Ltd on Wednesday appointed mine developer and operators (MDOs) for seven greenfield mines with a combined annual production capacity of 100 million tonne, the first time the state-run behemoth is outsourcing project development for expanding production.

Eight more mines are set to be developed though the MDO route, the company said. Letters appointing MDOs for SECL’s Madannagar and Pelma projects from these eight will be issued shortly. Six others are in various stages of tendering.

Coal India will spend about Rs 20,600 crore on these projects, largely for acquiring land and rehabilitating displaced persons.