The company spokesperson said that Coal India, a subsidiary of the Central Mine Planning & Design Institute (CMPDIL), will soon be inviting tenders to appoint such operators for two new underground mines to produce at least 5 million tons each year.
Coal India ‘s existing underground mines employ 44% of its workers, but account for just 5% of its production. There are 166 such mines out of a total of 360. Company executives say that most of these mines came to the company after nationalization. They produce better quality coal, but the cost is higher.
Coal India has developed plans to offer underground coal blocks to global mining developers and operators (MDOs) to extract coal efficiently and profitably. However, supervision and statutory manpower would be provided by Coal India.
It will allow the company to increase the current level of production from such mines, which has been around 30 million tons in the last two years, to around 100 million tons by 2024—almost 10 % of the total targeted quantity, company executives said.
Coal India uses MDOs for open casting, but underground mines are run by its own workforce. MDOs are likely to be allocated for existing underground mines at a later level.
At present, most of the open-cast output of Coal India is undertaken by MDOs, which produce coal more efficiently.
