In a groundbreaking development that promises to reshape the landscape of coal production in India, South Eastern Coalfields Limited (SECL) has set a new precedent by signing an agreement with Pelma Collieries. This landmark agreement establishes the Pelma opencast mine, situated in the mineral-rich region of Raigarh, Chhattisgarh, as the first opencast mine in the state to operate under the innovative Mine Developer and Operator (MDO) mode.
Under this visionary agreement, Pelma Collieries is entrusted with the operation of the Pelma opencast mine for the next two decades. The scope of responsibilities spans designing, financing, procurement, construction, operation, and maintenance of the mining project. The mine holds a colossal potential, with plans to extract over 219 million tonnes of coal over the 20-year period, maintaining an impressive annual target of 15 million tonnes of high-quality G-12 grade coal.
The MDO mode presents a paradigm shift in the conventional approach to mining operations, promoting a collaborative ecosystem where government and private enterprises join forces to meet the nation’s escalating energy demands. This pioneering step not only showcases SECL’s commitment to innovation but also lays a strong foundation for the realization of India’s ambitious goal of achieving 1 billion tonnes of coal production through the efforts of Coal India.
SECL has already carved a niche for itself by reinvigorating its old and dormant mines using the MDO model. Notably, the Ketki UG mine in the Bishrampur area has achieved a historic milestone by becoming the first coal mine in India to yield coal under the MDO mode. Simultaneously, the Letter of Award has been bestowed upon Kalyani UG Mine in the Bhatgaon area, marking a significant stride towards operation under the MDO-revenue sharing model. With a clear vision for the future, SECL is actively engaged in bringing additional projects under the MDO umbrella.
The Raigarh area, where the Pelma mine is situated, holds strategic significance due to its abundant coal reserves. Ranked as the third-largest coalfield in the country, boasting an estimated reserve of approximately 1,900 million tonnes, the SECL Raigarh area will play a pivotal role in shaping the organization’s future production trajectory. To further streamline operations, SECL is concurrently spearheading the development of a dedicated rail corridor within the region to facilitate the expeditious evacuation of coal.
