Coal India has issued letters of acceptance for nine greenfield projects to engage mining developers-cum-operators (MDOs), which have a cumulative production capacity of 127 MT per year.
The statement added that 15 projects with 169 MT capacity are on offer which it aims to develop through MDOs, with an investment of around Rs. 20,600 crore. The investment largely pertains to land acquisition, rehabilitation, resettlement, and railway sidings.
The ministry is aiming to engage MDOs through open global tenders in coal mines and to ramp up domestic production and reduce import dependence. The contract period of engagement is for 25 years or the lifespan of the allocated mine, whichever is shorter.
Coal is crucial to India’s economy as it generates around 70 percent of the nation’s electricity and is especially important for power plants to build inventories for the summer when demand is soaring across the country.
On Tuesday, India brought back requirements for power plants to import some of the coal used to build stockpiles and avert electricity blackouts over summer. Earlier in a rare move, the country also mandated purchases from overseas for several months last year.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Lok Sabha Election 2024: I.N.D.I.A. bloc to hold rally at Mumbai's BKC today
May 17, 2024 5:18 PM
In Ayodhya, voters talk of a promise fulfilled and yearning for development
May 17, 2024 2:10 PM
Fight of heavyweights in Sambalpur where farmers, weavers hold the key
May 17, 2024 12:25 PM
Odisha: Fight of heavyweights in Sambalpur where farmers, weavers hold the key
May 17, 2024 10:22 AM