Coal India’s Strategic Mine Revamp: 23 Underground Mines Go Private for Revenue Boost

Coal India Limited has awarded 23 underground mines to private operators on a revenue-sharing model to unlock coal reserves. These mines have a combined peak capacity of 34.14 million tonnes per year with 635 million tonnes of extractable reserves. The initiative aims to conserve resources, reduce imports, and provide local employment.

In a drive to unlock valuable coal reserves, Coal India Limited (CIL) announced on Wednesday that it has granted operational rights of 23 discontinued underground mines to private operators under a revenue-sharing model.

With a cumulative peak capacity of 34.14 million tonnes annually and 635 million tonnes in extractable reserves, this initiative marks a significant shift in India's coal sector. CIL disclosed that the minimum revenue share is set at 4 per cent, and contracts will last up to 25 years. However, the private operators' identities remain undisclosed.

Officials emphasize that this move could conserve resources, cut coal imports for non-regulated sectors, and generate local employment, without further land degradation as existing mining infrastructures are reused. CIL is also seeking to identify more mines and attract wider participation with relaxed bid norms.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)