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April 17, 2012

Government to consider PPP model to increase outputs of CIL mines…

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We have found from various sources that the Union Government which is under tremendous pressure due to its inability to meet the growing demand of coal for the power projects has started considering the proposal to engage private sector companies to under taking mining on behalf of CIL.

This proposal to involve private sector companies for the “Public Private Partnerships” (PPP) mode has been discussed between the Deputy Chairperson, Planning Commission Dr. Montek Singh Ahluwalia and Coal Secretary Mr. Alok Perti.

 

We learnt that the Coal Ministry is considering a model agreement  - mining, development and operations (MDO) – under which private companies would undertake mining operations, while the ownership and sale of coal would rest with CIL.

 

According to the letter by Dr. Ahlwalia to Mr. Sriprakash Jaiswal (Hon’ble Coal Minister) “It should be possible to expand cola mining operations rapidly through the proposed PPP model and the same can enable a fair and transparent framework based on competitive bidding.

 

CIL, in which government has a majority stake, has already done some preliminary work on the new model.

 

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