The government wants to overhaul the working of private mine developers and operators (MDOs) ahead of the first coal mining auctions with private company participation next month and wider plans for a massive increase in coal production.
The Prime Minister’s Office (PMO) has written to NITI Aayog, asking it to consult with industry to create a new legal framework and policy regime for private mine operators.
MDOs play a vital role in the operation of coal mines, but there are two challenges: they are illegal, and they are mostly selected for their ability to do the job at a low cost rather than for bringing in the technical expertise needed to scale up coal mining.
