Coal India Ltd to develop 27 coal mines through outsourcing

NEW DELHI: State-owned Coal India Ltd ( CIL) is in the process of finalising document for developing 27 mines, with 136 MTPA capacity, through outsourcing to increase output.

"CIL is in the process of finalising documents for development of 27 identified projects through outsourcing to enhance coal production capacities during the XII five year plan," Minister of State for Coal Pratik Prakashbapu Patil said in a written reply to Rajya Sabha.

Of the identified mines, 12 are underground and 15 are open-cast mines, the minister said.

Patil said that besides taking up production of coal through its own sources, CIL has also outsourced some of its operations to increase total coal production to meet the present demand.

"Responsibility, of coal production in a few mines of CIL, have been given to few agencies under long term contract through open tender like Bhubaneswari Open-cast project (OCP) of Mahanadi Coalfields Ltd and Rajmahal OCP of Eastern Coalfields Ltd (ECL)," the minister said.

The Coal Ministry had earlier said that it has sought the expertise of the Finance Ministry with regard to the bidding documents for selection of mine-developers and operators for certain CIL mines.

CIL, which accounts for over 80 per cent of domestic coal production, missed its production target and produced 431.325 million tonnes (MT) of coal last fiscal, against the revised target of 440.20 MT.