Coal India set to embrace PPP model for difficult mines.

In accordance with the Centre's public-private partnership (PPP) model, Coal India (CIL) is finally preparing to float an Expression of Interest (EoI) in a couple of months to award long-term mining contracts to private companies, to boost production.

'South Eastern Coalfields (SECL) and Eastern Coalfields (ECL) have identified some underground mines where high-technology mining would be required. They would be the first to award mines under the PPP model, during the current financial year,' a top official said.

'The miner would be selected through a tendering process. First, there would be an EoI, then a pre-bid meeting and a final bid. The clearances and land should be there and the particular mine should call for a higher level of technology. And, of course, we will have to ensure this model is cost-effective,' he said, adding CIL was expecting foreign miners to also come forward.

Engaging private contractors for mining is already operational in CIL under a Mine Developers and Operators (MDOs) model but the state-owned miner is now looking at an expansion of this. 'Awarding contracts to operators in the past few years under an MDO model were on a piecemeal basis and not on turnkey. Here, the miner would be handed over the mines for a much longer period and it would be awarded on a turnkey basis, from production to transport till loading point,' an official explained.


BS