CIL awards 23 abandoned mines to private operators

Tapping on coal potential: Coal India Limited (CIL) has awarded 23 abandoned mines to private operators under a revenue-sharing model aimed at unlocking coal reserves from closed underground sites, the company announced on Wednesday from Kolkata.

These mines collectively boast a peak-rated capacity of 34.14 million tonnes per year and hold estimated extractable reserves of 635 million tonnes.

The revenue share for operators is set at a minimum of 4 per cent, with contracts spanning up to 25 years, according to CIL.

Identifying these mines as previously dormant, CIL noted that 11 more mines are currently in the advanced stages of the bidding process.

Among the identified mines, Eastern Coalfields Limited and Bharat Coking Coal Limited in West Bengal and Jharkhand respectively each account for 10, while Western Coalfields Limited, South Eastern Coalfields Limited, Mahanadi Coalfields Limited, and Central Coalfields Limited contribute the remaining mines.

Reducing reliance on imported coal

Officials highlighted several benefits of the initiative, including resource conservation, reducing reliance on imported coal for non-regulated sectors, and generating employment opportunities for local communities.

Using existing mining infrastructure will mitigate additional land degradation. CIL is also exploring more mines to attract broader participation with relaxed bidding norms.

Under the terms, operators handling coal for gasification or liquefaction purposes will receive 50 per cent of the contracted revenue share.

Operators assume the mines "as is where is," using existing infrastructure without additional payment. Foreign participation is encouraged as secondary or tertiary partners in consortiums.

For the current fiscal year, CIL has set a production target of 838 million tonnes, following a production of 773.6 million tonnes in FY'24, marking a 10 per cent increase from the previous fiscal year.

(With PTI inputs)