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Coal ministry wants more private sector participation in production

Source : BUSINESS_STANDARD
Last Updated: Fri, Dec 07, 2012 07:41 hrs

pIn order to meet the country&rsquos coal production target the Centre today batted for private sector participation in Coal India operations through mine developers and operators MDO model thereby making the contribution from private firms for coal production to be about 100 million tonne MT by the end of the 12th Five Year Planpp&ldquoCoal India is coming up with a bidding document in this regard in consultation with the finance ministry By the end of the 12th Five Year Plan we want the private sector participation in this regard to around 100 MT&rdquo said S K Srivastava secretary of coal on the sidelines of a CII mining summit hereppSrivastava said that there are 30 mines currently under this system which produces about 29 MT of coal while with the addition of another four mines it would be around 42 MT by the end of this financial year The state-run coal major was planning to increase its production to 615 MT by financial year 2016-17 compared to 43584 MT in 2011-12 It plans to increase production by another 180 million tonne during the 12th Five Year Plan PeriodppThe bidding document will look into various issues including land acquisition and also the development aspects of the mine The Prime Minister&rsquos Office had recently asked CIL to bring more mines under MDO model while taking possession of the deallocated coal mines from private firmsppSrivastava added that not just in production but private sector must be involved more in exploration aspects too &ldquoI believe that CMPDI should outsource at least 50 per cent of its operations through private sector Apart from this private parties have a bigger role to play in coal beneficiation too&rdquo he saidppWhile the Kolkata-based firm produced 435 MT coal in 2011-12 it is targetting a production of 470 MT during the current financial yearppMeanwhile the coal secretary has put the onus of whether to continue in International Coal Ventures Private Limited ICVL on CIL board &ldquoIt is upon the firm&rsquos board to take a final call on this in the next meeting&rdquo he saidppAfter requests from the steel ministry the coal ministry had asked CIL to relook into its decision to pull out of ICVL The special purpose vehicle for overseas acquisition includes Steel Authority of India Ltd SAIL NTPC CIL Rashtriya Ispat Nigam Ltd RINL and National Mineral Development Corporation NMDCp


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