World's largest coal miner,
Coal India Ltd on Thursday said it hoped to award contract for 10-15 mines in the fiscal 2013-14 in the public private partnership pact.
Coal India in association with the ministry was modifying the Mine Developers and Operators (MDOs) model to award contracts to private contractors to
boost coal production.
"We will release the MDO document in the next few days and hope to award 10-15 MDO contracts by 2013-14," a CIL Director said on condition of anonymity.
"In the medium to long term, we must reduce our dependence on imported coal. One of the ways forward is to devise a PPP policy framework, with Coal India Ltd as one of the partners, in order to increase the production of coal for supply to power producers and other consumers," Finance Minister P Chidambaram in his budget speech said.
He also mentioned that despite abundant coal reserves, India continue to import large volumes of coal. Coal imports during the period April-December, 2012 have crossed 100 million tonnes.
It is estimated that imports will rise to 185 million tonnes in 2016-17.
Sources said MDO concept in Coal India is operational without any major impact on production as awarding contracts to operators in the last few years were on a piece meal basis and not on turnkey.
The new focus of the government to boost PPP will ensure the contract can be awarded in a turnkey basis from production to transport till loading point.
Meanwhile, equalisation of duty in coal will impact price of imported steam coal.
Coal India which is already facing opposition from the independent directors on price pooling concept will once again expected to turn difficult, sources said.
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