Union Ministry of Coal unveiled an initiative to revolutionize coal mining by engaging Global Mining Developers cum Operators (MDOs) for major coal mine projects under Coal India Limited.
- In 2019, Department for Promotion of Industry & Internal Trade allowed 100% FDI under automatic route for sale of coal, coal mining activities including associated processing infrastructure.
- It is subject to provisions of the Coal Mines (Special Provisions) Act, 2015, the Mines and Minerals (Development and Regulation) Act, 1957, and other applicable laws.
Roles and responsibilities of MDOs
- To inject advanced technological capabilities to modernize mining practices and improve operational efficiency.
- They will also manage crucial aspects such as Rehabilitation and Resettlement (R&R) issues, land acquisitions, and environmental clearances.
- Coordinate with State and Central Pollution Control Boards to guarantee rigorous adherence to environmental standards.
Other recent reforms in the Coal Sector
- Composite licensing: Composite Prospecting Licence-cum-Mining Lease (PL-cum-ML) allowed under the Mines and Minerals (Development and Regulation) Amendment Act, 2021.
- Commercial Coal Mining: In 2020, commercial coal mining auctions were launched marking the entry of private players into the coal sector.
- Others: Integrated Coal Logistic Policy and Plan, Investment in Coal Gasification, etc.
