Coal India Has awarded Abandoned mines to private companies

To bolster its revenue stream, national miner Coal India Ltd (CIL) has awarded its abandoned coal mines to private players on a revenue-sharing model.

Coal India Limited (CIL) is an Indian central public sector undertaking under the ownership of the Ministry of Coal, Government of India. It is headquartered at Kolkata. It is the largest government-owned-coal-producer in the world. It is also the ninth largest employer in India with nearly 272,000 employees.

  • CIL had identified 23 coal mines — most of them underground ones — which were closed or discontinued for technical or financial reasons.

Revenue Sharing Model for Coal Plants

  • The revenue sharing model involves collaboration between Coal India Ltd (CIL) and private players.
  • Revenue Sharing Framework:
    • Structure: Private players are awarded contracts to operate abandoned or underutilized coal mines on a revenue-sharing basis with Coal India Ltd (CIL).
    • Revenue Split: The revenue generated from coal sales is shared between CIL and the private operators based on agreed terms.
  • Identification of Mines:
    • Selected Mines: CIL identified 23 abandoned or discontinued mines, mostly underground, with a cumulative peak-rated capacity of 34.14 million tonnes per annum (MTPA) and estimated reserves of 635 million tonnes (MT).