CIL to offer 100 shut coal mines to private sector
Deal will be a revenue-sharing model
Mumbai, Feb 24 (UNI): State-owned Coal India is mulling offering nearly 100 discontinued/shut coal mines to private sector on a revenue-sharing model to increase coal production.
The proposal comes in the wake of the discussions held by the Ministry of Coal with the private sector on Thursday on exploring revenue sharing model for discontinued/closed mines of CIL.
Under this, the government is contemplating to partner private sector on revenue sharing model to produce coal from discontinued/closed mines.
“There are many mines which were discontinued/closed in the past by CIL due to several reasons and these could be reopened and productively brought into operation with the partnership of the private sector,” the Coal Ministry said in a statement.
The ministry is very hopeful that collaboration with the private sector will enhance productivity, efficiency gains and will be able to produce additional coal required for the development of the country.
“CIL is looking to offer more than 100 such mines to private sector on revenue sharing basis in due course of time,” it added.
The stakeholder consultation attracted huge participation from the private sector like Essel Mining, Adani, Tata, JSW, JSPL etc. and their enthusiastic support to the proposal, it noted.