Planning Commission preparing model accord for mine developers

New Delhi: The Planning Commission is preparing a model concession agreement for state-owned Coal India (CIL) to engage mine developer cum operators (MDOs), Parliament was informed today.

"The Planning Commission in consultation with all the stakeholders, including Ministry of Coal and Coal India Ltd, is in the process of finalising a model concession agreement for engagement of MDOs in CIL," Minister of State for Coal Pratik Prakashbapu Patil said in a written reply to the Lok Sabha.

The minister said the Finance Minister, in his budget speech, had announced public-private participation (PPP) with CIL as one of the partners to augment coal production.

Accordingly, a committee was set up under the Chairmanship of the Coal Secretary with representatives from the Planning Commission and ministries such as Finance and Labour to recommend a framework for the PPP, he said.

"The Committee deliberated on the various models, including engaging mine developer cum operators (MDO)," Patil said.

Under the MDO model, a coal block owner contracts a third party for the entire mining operations, including land acquisition and the resettlement and rehabilitation of displaced people.