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MDO is emerging as a model for coal mining, 13 coal mines of the country are based on this model.

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Raipur. Mine Developer and Operator (MDO) has become a rapidly emerging operating model in the coal mining sector in India. 13 coal mines in the states of Jharkhand, Orissa, West Bengal, Goa and Chhattisgarh with a total production capacity of 102.99 million tonnes per annum (MTPA) are operated on this model. The contract process for more than 80 resources of 714.4 MTPA capacity is ongoing.

Coal is an important source of the Indian economy, and its mining sector contributes significantly to the development of the country. In earlier times, coal mining in India was ineffective and based on ancient technologies. This not only put the time and lives of the employees at stake, but also required a huge investment. In fact, the Government of India nationalized the coal mines on May 1, 1973 with the enactment of the Coal Mines Act, 1973. Which determined the eligibility for coal mining in India. Due to extreme criticism, the Parliament enacted 'Coal Mines (Special Provisions) Act 2015 in the year 2015 under the special provision of coal mines.

The rules and regulations for allotment of coal blocks through public auction and prior discharge of licenses and leases of coal mines for vesting rights, ownership and interests in land and mine infrastructure as determined under this Act. Subject to conditions. Due to this, in the modern era, technological advancement and use of new techniques has brought about a revolution in the mining sector.

At the same time, changes in the traditional model of mining were also accepted. Presently, India has become a center of expertise and innovation in coal mining which is creating records day by day in making the mining process easier and safer by the use of new and modern mining technologies. At the same time, from the point of view of innovation, the Mine Developer and Operator (MDO) model is also emerging as a convenient model in most of the public enterprises today. Let us know what this model is.

Mine Developer and Operator (MDO) Model

Mine Developer and Operator (MDO) is a model of development and operation of mines adopted in India. Which was adopted due to limited resources in the mining sector. This not only affects the production level but also improves cost and capital management including necessary measures and efficient techniques in production. At the same time, public enterprises neither require any investment, nor any land related issues, nor any employee related responsibilities. That is, the adage about the value of mangoes and kernels also comes true in this model.

Model helpful in fuel supply of plants

The sector witnessed a major transformation in 2014 after the Supreme Court of India canceled the allocation of 214 coal blocks and almost all existing permissions for captive mining of coal blocks. On the basis of this decision, new laws and necessary reforms were prepared in the coal industry. The draft contract agreement for the MDO model was released on 05 August 2015 and on 06 June 2016, the Coal Ministry issued common guidelines for Mine Developer and Operator Projects (MDO).

Important legislation governing coal mining in India Under the administrative control of the Ministry, these major functions are carried out through Public Sector Undertakings (PSUs) namely Coal India Limited and its subsidiaries and Neyveli Lignite Corporation Limited. The Mineral Laws (Amendment) Bill, 2020, was introduced in the Lok Sabha on March 02, 2020, which introduced certain changes in the scheme of the Act, the most notable of which was the insertion of section 4B, which provides that the Central Government Can set conditions for.

In the interest of continued production of minerals in the country and Section 8B was added to provide that a new lessee may continue mining operations on the land in which mining operations are carried out by the new lessee for a period of two years from the date of commencement of the same. Being done for the duration. Thus, it is the overall responsibility of the Union Ministry of Coal and Mineral Resources to lay down policies and strategies with respect to exploration and development of coal and lignite reserves as well as approving important projects of high value and all related issues. But he also has the right to take decisions.

Current Status and Utility of MDO Model

There are a total of 442 mines in coal mining in India, including 422 mines in the government sector and 20 mines in the private sector. Some of the major coal mining states according to state and area include Jharkhand state which has a total of 113 coal mines, West Bengal 73, Chhattisgarh 53, Madhya Pradesh 61 and Maharashtra has a total of 54 coal mines. Keeping in mind the energy needs of India, the government has encouraged new policies in the mining sector.

According to the data currently available in the official website of the Ministry of Mineral Resources and Coal, Government of India, about 16 such contracts have been issued in various public sector undertakings present in the states of Jharkhand, West Bengal, Orissa, Chhattisgarh, Andhra Pradesh, Goa etc., in which MDO model is being implemented. Mining work is being executed by private companies only through contracts.

These include 13 coal mines with a total production capacity of 102.99 million tonnes per annum (MTPA) in the states of Jharkhand, Orissa, West Bengal and Chhattisgarh, three lignite mines of 33 MTPA capacity in the state of Gujarat and one iron ore block of 10 MTPA capacity in the state of Jharkhand. . Whereas the contract process for this model is going on for more than 80 resources. These include 71 coal blocks of 714.4 MTPA capacity, four iron ore blocks of 33.5 MTPA capacity and one lignite and limestone block of 33 MTPA capacity.

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