Pelma Becomes SECL's First Opencast Mine to Produce Coal Under MDO Mode

South Eastern Coalfields Limited (SECL) has taken a significant step towards enhancing coal mining operations in Chhattisgarh by adopting the Mine Developer and Operator (MDO) mode for the Pelma mine. This opencast mine, situated in the Raigarh area, will be operated under this innovative approach.

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SECL has entered into an agreement with Pelma Collieries, marking the first instance of an opencast mine in Chhattisgarh being operated under the MDO mode. This move is expected to optimize mining operations and contribute to the efficient extraction of coal resources in the region.

More About the Agreement

The agreement outlines that Pelma Collieries will take on the responsibility of operating the mine for the next two decades.
During this period, they will handle various aspects including project design, financing, procurement, construction, operation, and maintenance.
The mine’s extraction plans span over 20 years, aiming to extract more than 219 million tonnes of coal.
The annual goal is to extract 15 million tonnes of high-quality G-12 grade coal from the mine.

What is Mine Developer and Operator (MDO)?

The Mine Developer and Operator (MDO) mode signifies a collaborative approach between government and private entities to meet the nation’s energy demands. This partnership aims to contribute to the expansion of coal production by SECL and play a vital role in achieving Coal India’s ambitious goal of producing 1 billion tonnes of coal.

Significance of the Agreement

SECL has achieved a significant milestone by reviving old and previously closed mines through the MDO mode. The Ketki UG mine in the Bishrampur area has achieved the distinction of becoming the first coal mine in India to produce coal under this mode. Additionally, the Kalyani UG Mine in the Bhatgaon area has been granted the Letter of Award for operating through the MDO – revenue sharing model. SECL is actively working to initiate other projects under the MDO mode as well.

The SECL Raigarh area holds strategic importance due to its substantial coal reserves, and it is poised to contribute significantly to SECL’s overall production in the foreseeable future. With an estimated coal reserve of approximately 1900 million tonnes, it stands as the third largest coalfield in the country. SECL is also in the process of developing a rail corridor in this area to ensure efficient coal evacuation.

About South Eastern Coalfields Limited (SECL)

South Eastern Coalfields Limited (SECL) is a public sector coal mining company in India. It is a subsidiary of Coal India Limited (CIL), the largest coal mining company in the world.

SECL was incorporated in 1985 with the objective of acquiring and taking over the business of the Bilaspur division of Western Coalfields Limited and the Talcher division of Central Coalfields Limited.
It is headquartered in Bilaspur, Chhattisgarh.
SECL is one of the largest coal producing companies in India.
It has a total coal production capacity of 127.5 million tonnes per annum.
The company mines coal from 92 mines located in Chhattisgarh, Madhya Pradesh, and Odisha.
SECL is a major supplier of coal to power plants, steel plants, and other industries in India.
It also exports coal to other countries.

SECL is a responsible corporate citizen. It has been recognized for its good corporate governance practices. The company has also been awarded the Prime Minister’s Trophy for Excellence in Coal Production.

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