The Ministry of Coal has planned to engage private companies to boost coal production by 257 MT by taking over the mining operations. The state-owned Coal India Limited (CILT) has selected 28 projects for the purpose including 18 opencast and 10 underground mines, a PIB press release stated.
The ministry said that it had selected 15 companies for the initial purpose, of which 18 have now been awarded contracts. The companies have been selected through open global tenders. The engagement of these companies will ensure operational excellence and complete the mining cycle of the projects, including excavation, extraction and delivery of coal.
Under the contracts, the mining companies will also be responsible for land acquisition and environmental clearances. They will also work with the State and Central Pollution Control Boards for adherence to environmental standards. The contracts will span 25 years or the life of the mine, whichever is shorter.
The Ministry of Coal said that the purpose of bringing in private companies is to make the mining sector more efficient and reduce reliance on imported coal. The state-owned CILT aims to leverage the expertise of the private companies and enhance coal production capabilities, improve operational efficiencies, and reduce reliance on coal imports, ultimately contributing to India’s energy security and economic growth. The engagement of private companies will also create employment opportunities in the mining sector and boost the economy.