Kolkata, June 19 : In a bid to unlock coal reserves from its closed and discontinued underground mines, Coal India Limited (CIL) has awarded 23 such mines to private operators on a revenue-sharing model, the company announced on Wednesday.
These mines have a cumulative peak rated capacity of 34.14 million tonnes per year, with estimated total extractable reserves of 635 million tonnes.
The minimum revenue share is set at 4 per cent, and the contract period is a maximum of 25 years, CIL stated. The identities of the private operators have not been disclosed.
Coal India officials said the bidding process for another 11 mines is in an advanced stage.
CIL has identified 34 dormant mines with high-quality coal reserves. Previously, Coal India planned to close down unviable mines, both open cast and underground, to save costs.
Of the 34 identified mines, West Bengal-based Eastern Coalfields Limited and Jharkhand-based Bharat Coking Coal Limited account for 10 each. Western Coalfields Limited has 5, South Eastern Coalfields Limited has 4, Mahanadi Coalfields Limited has 3, and Central Coalfields Limited has 2.
Officials highlighted the benefits of this initiative, including resource conservation, substituting imported coal for non-regulated sectors, and providing livelihoods to local communities.
There will be no additional land degradation, as the existing mining infrastructure will be utilised. CIL is also identifying more mines to attract wider participation, with relaxed bid norms, the company said.
For coal sold exclusively for gasification or liquefaction purposes, the operator will receive 50 per cent of the contracted revenue share, the statement added.
The operator, receiving the mine “as is where is,” can utilise existing infrastructure without extra payment. Foreign bidders can participate in the consortium as a second or third partner, it said.
Coal India has set a production target of 838 million tonnes for the current fiscal year. The company produced 773.6 million tonnes of coal in FY’24, marking a 10 per cent growth over the 703.2 million tonnes produced in 2022-23. ( PTI )
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