Plan panel drafting model accord for Coal India

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SME Times News Bureau | 19 Dec, 2013
In a move to increase domestic coal production, the Planning Commission is preparing a model concession agreement for state miner Coal India (CIL) to engage mine developer cum operators (MDOs), the coal ministry said Thursday.

"The Planning Commission in consultation with all the stakeholders, including Ministry of Coal and Coal India Ltd., is in the process of finalising a model concession agreement for engagement of MDOs in CIL," Minister of State for Coal Pratik Prakashbapu Patil said in a written reply to parliament.

A committee was set up under the coal secretary with representatives from the Planning Commission and ministries of finance, labour and law to recommend a framework for public-private partnership (PPP) with Coal India, the minister said.

"The committee deliberated on the various models, including engaging MDOs," Patil said.

Under the MDO model, a coal block owner contracts with a third party for the mining operations, including land acquisition and resettlement and rehabilitation of people displaced.

The minister also said no allocations were made to private companies during 2012, as well as in 2013.

As against the 2013-14 production target from allocated captive coal blocks of 46.15 million tonnes, the production achieved up to October is 21.74 MT - 13.645 MT for private companies and 8.095 MT for government companies, Patil said.